EXPLANATORY STATEMENT
Issued by the Authority of the Minister for Finance and Deregulation
FMA Act Determination 2008/41— Section 32 (Transfer of Functions from Medicare Australia to Health)
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 Schedules 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.
The purpose of this Determination is to allow a transfer of appropriations from Medicare Australia to the Department of Health and Ageing (Health). The appropriation amounts transferred are as follows:
- From annual Appropriation Act (No. 1) 2007-2008 an amount of $1,607,000.00 of the departmental item for Medicare Australia to the departmental item for Health; and
- From annual Appropriation Act (No. 2) 2007-2008 an amount of $1,473,000.00 other departmental item (Equity Injections) for Medicare Australia to the other departmental item (Equity Injections) for Health.
In accordance with the Legislative Instruments Act 2003, Medicare Australia and Health were consulted in the preparation of this instrument.
The Determination is a legislative instrument for the purposes of the Legislative Instruments Act 2003.
Overview
The FMA Act Determination 2008/41, enacted in 2008, facilitates the transfer of appropriations from Medicare Australia to the Department of Health and Ageing, as stipulated under the Financial Management and Accountability Act 1997. This determination, issued by the authority of the Minister for Finance and Deregulation, authorises the re-allocation of specified appropriations from Medicare Australia to the Department of Health and Ageing. The purpose of this legislative instrument is to enable a seamless transfer of financial resources in connection with the shifting of functions between these agencies, ensuring that budgetary allocations align with operational changes. This action is part of a broader effort to improve financial management and accountability within the Australian government, reflecting a policy objective to streamline and rationalise the allocation of funds across government entities.
Scope and Application
The FMA Act Determination 2008/41 pertains to the transfer of specific appropriations from Medicare Australia to the Department of Health and Ageing as part of a function transfer under the Financial Management and Accountability Act 1997. The determination is authorised by subsection 32(2) of the FMA Act, which allows the Minister for Finance and Deregulation to amend Schedules to annual Appropriation Acts in connection with such transfers. The authority to make this determination has been delegated to the Secretary of the Department of Finance and Deregulation. This particular determination facilitates the transfer of financial appropriations from Medicare Australia to the Department of Health and Ageing, specifically $1,607,000.00 from the departmental item for Medicare Australia to the departmental item for Health, and $1,473,000.00 from the other departmental item (Equity Injections) for Medicare Australia to the other departmental item (Equity Injections) for Health. This determination applies to the financial appropriations outlined within the annual Appropriation Acts (No. 1) 2007-2008 and (No. 2) 2007-2008. The transfer is designed to align financial resources with the operational shifts between these two entities, ensuring that the Department of Health and Ageing has the necessary funding to continue its activities. The preparation of this instrument involved consultation with Medicare Australia and Health as mandated by the Legislative Instruments Act 2003.
Key Provisions
The FMA Act Determination 2008/41 (section 32) facilitates the transfer of appropriations from Medicare Australia to the Department of Health and Ageing. Specifically, subsection 32(2) of the Financial Management and Accountability Act 1997 (FMA Act) empowers the Minister for Finance and Deregulation to amend the schedules of annual Appropriation Acts in order to reallocate funds in connection with the transfer of functions between agencies under the FMA Act. This transfer mechanism is intended to ensure that financial resources are aligned with the functions and responsibilities of the relevant agencies.
This determination mandates the reallocation of certain appropriations from Medicare Australia to the Department of Health and Ageing. The amounts specified for transfer are $1,607,000.00 from the departmental item for Medicare Australia to the departmental item for Health, as outlined in the annual Appropriation Act (No. 1) 2007-2008, and $1,473,000.00 from the other departmental item (Equity Injections) for Medicare Australia to the other departmental item (Equity Injections) for Health, as specified in the annual Appropriation Act (No. 2) 2007-2008. The determination requires that these appropriations be transferred to ensure that the financial resources are appropriately aligned with the functions and responsibilities of the Department of Health and Ageing.
The FMA Act Determination 2008/41 imposes obligations on both Medicare Australia and the Department of Health and Ageing to ensure the proper and efficient transfer of the specified appropriations. This includes the requirement for both agencies to cooperate in the implementation of the transfer, as mandated by the Legislative Instruments Act 2003, which stipulates that the affected agencies were consulted during the preparation of this instrument. Both agencies must ensure that the financial transfers are accurately recorded and accounted for in their respective budgetary processes.
There are no specific offences, penalties, or civil/criminal consequences outlined in the FMA Act Determination 2008/41 for breaches of the provisions. However, any failure to comply with the requirements of the FMA Act or the annual Appropriation Acts could potentially lead to broader accountability and audit issues, which might be addressed under other sections of the FMA Act or related legislation. The determination itself does not specify particular penalties but relies on the general compliance and enforcement mechanisms available under the FMA Act.