EXPLANATORY STATEMENT

Issued by the authority of the Minister for Finance and Administration

Financial Management and Accountability Act 1997

Determination 2002/05 establishing a Special Account under section 20

The attached Instrument makes a determination under subsection 20(1) of the Financial Management and Accountability Act 1997 (the Act) to establish a Special Account. It also specifies the nature of amounts which may be credited to, and the purposes for which amounts may be debited from, each account.

Special Accounts Generally

Under the Constitution, revenues or moneys received by the Executive Government of the Commonwealth form the Consolidated Revenue Fund (CRF) and may not be

spent except under a valid appropriation.  Special Accounts allow money in the CRF to be set aside (hypothecated) for a particular purpose and expended for that purpose without the need for a further specific appropriation.

In effect, a determination establishing and/or allowing or requiring an amount to be credited to a Special Account makes a new appropriation for that amount. This is achieved via a standing appropriation (in subsection 20(4) of the Act) for the purposes of each Special Account, up to the balance of each Special Account.

Determinations relating to Special Accounts must be tabled in each House of Parliament by the Finance Minister. They may be disallowed by either House within 5 sitting days after they are tabled. If they are not disallowed, they come into effect the day after the last day on which they could have been disallowed.

The ComSuper Special Account

The determination abolishes the 'Commonwealth Superannuation Administration Account'. The funds in this account are to be transferred to a new Special Account titled the ComSuper Special Account.

The determination also establishes the ComSuper Special Account, to be administered by ComSuper.

The purpose of the Account is to provide for the expenditure of monies related to the provision of administration, accounting and other support services to or on behalf of the CSS and PSS Boards and the Military Superannuation and Benefits Board of Trustees No.1, the administration of any functions conferred on the Commissioner for Superannuation under any legislation, the transfer of the CSS Board's share of revenue as agreed between the Commissioner for Superannuation and the CSS Board, and the transfer of the PSS Board's share of revenue as agreed between the Commissioner for Superannuation and the PSS Board.

Any monetary contributions appropriated from the CRF, or received by ComSuper as revenue in the course of the performance of the Commissioner of Superannuation of the Commissioner's functions, or received by ComSuper in relation to the administration by the CSS Board or the PSS Board of the CSS Scheme or the PSS Scheme respectively may be credited to the Account. Amounts previously held in the 'Commonwealth Superannuation Administration Account' are to be transferred to the ComSuper Special Account immediately prior to its closure.