EXPLANATORY STATEMENT
Issued by the authority of the Minister for Finance and Deregulation
Financial Management and Accountability Act 1997
Financial Management and Accountability (Abolition of 3 Special Accounts) Determination 2011/15
Purpose of the Determination
The Determination is made under subsection 20(3) of the Financial Management and Accountability Act 1997 (FMA Act) and abolishes the following three Special Accounts:
- Other Trust Moneys Account - Australian Federal Police;
- Australian Reward Investment Alliance Special Account; and
- Commonwealth Superannuation Administration Special Account.
Special Accounts generally
In accordance with the Constitution, all revenues or moneys raised or received by the Government of the Commonwealth form one Consolidated Revenue Fund (CRF) and may not be spent unless under an appropriation by the Parliament for the purposes of the Commonwealth. A Special Account may be established by a determination that sets out the amounts that may be credited and the purposes for which it may be debited. Special Accounts established by determination are supported by an appropriation under section 20 of the FMA Act. In effect, Special Accounts allow amounts from the CRF to be spent on the purposes specified in the determination.
Determinations that establish Special Accounts, or vary determinations that establish Special Accounts, are subject to section 22 of the FMA Act. Section 22 of the FMA Act requires the Finance Minister to table a copy of the establishing or varying determination in each House of the Parliament. Either House may disallow a determination within five sitting days of tabling. If the determination is not disallowed, it comes into effect on the calendar day after the last day on which it could have been disallowed.
Regulation 10 of the Legislative Instruments Regulations 2004 preserves the disallowance provisions under section 22 of the FMA Act by exempting Special Account determinations from subsections 57(2) and 57(5) of the Legislative Instruments Act 2003.
Special Accounts can be abolished by a determination made by the Finance Minister. Such a determination is not subject to parliamentary disallowance.
Operation of this Determination
The Determination abolishes three Special Accounts which are no longer required.
Reasons for abolishing the Special Accounts
The Other Trust Moneys Account - Australian Federal Police is a general purpose Special Account which has been updated and replaced by the Services for Other Entities and Trust Moneys - Australian Federal Police Special Account. Accordingly, the Other Trust Moneys Account is no longer required.
The Australian Reward Investment Alliance Special Account and the Commonwealth Superannuation Administration Special Account are being abolished because they are both surplus to requirements. The creation of the Commonwealth Superannuation Corporation on
1 July 2011 by the Governance of Australian Government Superannuation Schemes Act 2011 means that these two Special Accounts are no longer necessary for managing amounts related to superannuation activities.
Consultation
The Agencies affected by this determination are the Australian Federal Police, ComSuper and the Department of Finance and Deregulation (as the portfolio department of state for the former Australian Reward Investment Alliance). These Agencies were given an opportunity to comment on drafts of the instrument and to supply estimates for the “Balances and Transactions Table”.
As the instrument is for internal machinery of government purposes only, no consultation was necessary with other persons (see sections 17 and 18 of the Legislative Instruments Act 2003).
Table of estimated balances and transactions of the abolished Special Accounts
The table below outlines the estimated financial implications of the determination on the balance of the Special Accounts.
Special Account | 2011-2012 ($’000) |
Opening Balance | Credits | Debits | Closing Balance |
Other Trust Moneys Account - Australian Federal Police | 0 | 0 | 0 | 0 |
Australian Reward Investment Alliance Special Account | 1,992 | 0 | 1,992 | 0 |
Commonwealth Superannuation Administration Special Account | 20,094 | 0 | 20,094 | 0 |
Overview
The Financial Management and Accountability (Abolition of 3 Special Accounts) Determination 2011/15 was enacted under the Financial Management and Accountability Act 1997, with the objective of abolishing three specific Special Accounts that were no longer required. This determination was made by the Minister for Finance and Deregulation, and it is intended to streamline financial management within the Commonwealth. The Special Accounts that were abolished included the Other Trust Moneys Account - Australian Federal Police, the Australian Reward Investment Alliance Special Account, and the Commonwealth Superannuation Administration Special Account. These accounts were deemed redundant due to the establishment of the Services for Other Entities and Trust Moneys - Australian Federal Police Special Account and the creation of the Commonwealth Superannuation Corporation on 1 July 2011. The affected agencies were given the opportunity to provide feedback on the draft determination and supply estimates for the "Balances and Transactions Table". This determination reflects an effort to enhance financial management efficiency by eliminating unnecessary administrative burdens.
Scope and Application
The Financial Management and Accountability (Abolition of 3 Special Accounts) Determination 2011/15 is an instrument made under subsection 20(3) of the Financial Management and Accountability Act 1997 (FMA Act) by the Minister for Finance and Deregulation. It aims to abolish three specific Special Accounts: the Other Trust Moneys Account for the Australian Federal Police, the Australian Reward Investment Alliance Special Account, and the Commonwealth Superannuation Administration Special Account. These accounts are no longer required due to either being superseded by a new account or because of structural changes within the government that render them obsolete. The Determination is applicable to the Australian Federal Police, ComSuper, and the Department of Finance and Deregulation, which were consulted regarding the proposed abolition. This Determination does not require parliamentary disallowance and solely serves internal government purposes, exempting it from wider consultation requirements as per sections 17 and 18 of the Legislative Instruments Act 2003.
Key Provisions
The Financial Management and Accountability (Abolition of 3 Special Accounts) Determination 2011/15 (the Determination) made under subsection 20(3) of the Financial Management and Accountability Act 1997 (FMA Act) aims to abolish three specific Special Accounts, namely the Other Trust Moneys Account - Australian Federal Police, the Australian Reward Investment Alliance Special Account, and the Commonwealth Superannuation Administration Special Account. The reasons for abolishing these Special Accounts are varied, with some being replaced by new accounts, and others becoming surplus to requirements due to legislative changes. The Determination provides that the Other Trust Moneys Account - Australian Federal Police has been updated and replaced by the Services for Other Entities and Trust Moneys - Australian Federal Police Special Account, making the former no longer necessary. The Australian Reward Investment Alliance Special Account and the Commonwealth Superannuation Administration Special Account are abolished as they are now redundant, primarily due to the creation of the Commonwealth Superannuation Corporation on 1 July 2011 under the Governance of Australian Government Superannuation Schemes Act 2011.
The Determination imposes obligations on the agencies affected by the abolition of these Special Accounts. Specifically, the Australian Federal Police, ComSuper, and the Department of Finance and Deregulation (as the portfolio department of state for the former Australian Reward Investment Alliance) were given the opportunity to comment on drafts of the instrument and provide estimates for the "Balances and Transactions Table". These agencies were consulted to ensure that the abolition of the Special Accounts would not have unintended consequences. As the instrument is for internal machinery of government purposes only, no consultation was necessary with other persons (see sections 17 and 18 of the Legislative Instruments Act 2003).
There are no specific offences, penalties, or civil/criminal consequences outlined in the Determination for breach of its provisions. As the Determination is a regulatory instrument, non-compliance with its requirements may result in administrative consequences, such as the imposition of fines or other penalties, as prescribed by the relevant legislation. However, the maximum penalties for such breaches are not stated in the Determination itself, and would need to be referred to in the primary legislation, such as the FMA Act or the Legislative Instruments Act 2003.