EXPLANATORY STATEMENT
Issued by the Authority of the Minister for Finance and Deregulation
FMA Act Determination 2007/03— section 32 (Transfer from the
Department of Education, Science and Training to the
Department of Innovation, Industry, Science and Research)
Subsection 32(2) of the Financial Management and Accountability Act 1997 (FMA Act) provides that the Minister for Finance and Deregulation (Finance Minister) may, by determination, amend Schedules to annual Appropriation Acts to transfer appropriations in connection with the transfer of a function between agencies under the FMA Act. The determination has the effect of amending the Schedule concerned in accordance with the determination.
This power has been delegated from the Finance Minister to the Secretary of the Department of Finance and Deregulation under section 62 of the FMA Act.
Gazette No. S254 reflects the administrative arrangement order of 3 December 2007, made by the Governor-General in Council, which resulted in the abolition and establishment of Departments of State. As a result of these changes various annual Appropriation Acts require amendment in order to reflect the changes in departmental arrangements.
The purpose of this Determination is to allow a transfer of appropriations between the Department of Education, Science and Training to the Department of Innovation, Industry, Science and Research. The appropriation amounts transferred are as follows:
- From annual Appropriation Act (No. 1) 2007-2008 an amount of $6,000,000 of the departmental item of the Department of Education, Science and Training was transferred to the Department of Innovation, Industry, Science and Research.
- Also from the same Act, an amount of $200,000,000 under one administered item for the Department of Education, Science and Training was transferred to the Department of Innovation, Industry, Science and Research.
In relation to section 17 of the Legislative Instruments Acts 2003, no external consultation was undertaken as changes in the Act are of machinery nature.
The Determination is a legislative instrument for the purposes of the Legislative Instruments Act 2003.
Overview
The FMA Act Determination 2007/03 was enacted to amend the annual Appropriation Acts in accordance with the Financial Management and Accountability Act 1997. This determination was introduced to address the need to reflect changes in departmental arrangements following the administrative arrangement order of 3 December 2007, which resulted in the abolition and establishment of new Departments of State. Specifically, the determination facilitates the transfer of appropriations from the Department of Education, Science and Training to the Department of Innovation, Industry, Science and Research. This includes a transfer of $6,000,000 from a departmental item and $200,000,000 from an administered item under the annual Appropriation Act (No. 1) 2007-2008. The determination was issued by the Minister for Finance and Deregulation, exercising powers delegated under the FMA Act, and it serves to ensure that financial allocations are appropriately adjusted to reflect the new departmental structure. The policy objective is to maintain fiscal integrity and ensure that financial resources are aligned with the new organisational framework.
Scope and Application
The FMA Act Determination 2007/03, as issued under the authority of the Minister for Finance and Deregulation, serves to amend the annual Appropriation Acts to facilitate the transfer of appropriations between the Department of Education, Science and Training and the Department of Innovation, Industry, Science and Research. This determination is made pursuant to subsection 32(2) of the Financial Management and Accountability Act 1997, which grants the Minister the power to transfer appropriations related to the transfer of functions between agencies. The power to make such determinations has been delegated to the Secretary of the Department of Finance and Deregulation under section 62 of the FMA Act. This determination specifically addresses the amendments required due to the administrative arrangement order of 3 December 2007, which resulted in the abolition and establishment of various Departments of State. The legislative instrument involves the transfer of $6,000,000 from the departmental item and $200,000,000 from an administered item of the Department of Education, Science and Training to the Department of Innovation, Industry, Science and Research. Notably, this determination is of a machinery nature, and as such, no external consultation was undertaken in accordance with section 17 of the Legislative Instruments Act 2003.
Key Provisions
The key operative sections of the FMA Act Determination 2007/03 (subsection 32(2)) allow the transfer of appropriations between the Department of Education, Science and Training and the Department of Innovation, Industry, Science and Research. Specifically, this determination facilitates the transfer of $6,000,000 from a departmental item and $200,000,000 from an administered item, as reflected in the annual Appropriation Act (No. 1) 2007-2008. This transfer is necessary due to the administrative arrangement order of 3 December 2007, which involved the abolition and establishment of various Departments of State. The power to make such determinations is delegated to the Secretary of the Department of Finance and Deregulation under section 62 of the FMA Act.
The obligations and requirements imposed by this Act primarily involve ensuring that the appropriations are accurately transferred to reflect the new departmental arrangements. This includes the precise calculation and reallocation of funds as specified, which must be done in accordance with the administrative arrangement order. The Act also mandates that these changes are properly documented and reflected in the relevant Appropriation Acts. Furthermore, the Act requires compliance with the statutory framework provided by the FMA Act and the Legislative Instruments Act 2003.
The FMA Act Determination 2007/03 does not explicitly outline specific offences or penalties for breaches. However, any failure to comply with the requirements of the FMA Act or the Legislative Instruments Act 2003 could potentially result in broader legal consequences under those Acts. The FMA Act provides for civil and criminal penalties for breaches of its provisions, including fines and imprisonment. Under the Legislative Instruments Act 2003, invalid legislative instruments can be subject to legal challenges, and the Minister or responsible authority may be required to correct or withdraw the instrument. The specific maximum penalties would be governed by the provisions of the FMA Act and other relevant legislation.