EXPLANATORY STATEMENT
Issued by the Authority of the Minister for Finance and Deregulation
FMA Act Determination 2008/58— Section 32 (Transfer of Functions from the former DEST to DIISR)
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.
Special Gazette No. S254 reflects the administrative arrangements 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 from the former Department of Education, Science and Training (DEST) to the Department of Innovation, Industry, Science and Research (DIISR). The appropriation amounts transferred are as follows:
- From annual Appropriation Act (No. 1) 2004-2005 an amount of $4,079,751.93 of the departmental item for the former DEST to the departmental item for DIISR;
- From annual Appropriation Act (No. 1) 2007-2008 an amount of $18,588,000.00 of the departmental item for the former DEST to the departmental item for DIISR; and
- From annual Appropriation Act (No. 2) 2007-2008 an amount of $2,803,000.00 of the other departmental item (Equity Injections) for the former DEST to the other departmental item (Equity Injections) for DIISR.
In accordance with the Legislative Instruments Act 2003, the former DEST and DIISR 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 2008/58, enacted in 2008, was introduced to address the need for the transfer of appropriations from the former Department of Education, Science and Training (DEST) to the Department of Innovation, Industry, Science and Research (DIISR) as a result of administrative changes outlined in the administrative arrangements order of 3 December 2007. This Determination was issued under the authority of the Minister for Finance and Deregulation, in accordance with section 32(2) of the Financial Management and Accountability Act 1997. 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. The policy objective is to ensure that financial allocations are appropriately adjusted to reflect the new departmental arrangements following the abolition and establishment of various Departments of State, as stipulated in Special Gazette No. S254.
This legislative instrument was prepared in consultation with the former DEST and DIISR, as required by the Legislative Instruments Act 2003. The Determination serves to amend the relevant annual Appropriation Acts to facilitate the transfer of specified appropriations from the former DEST to DIISR. This includes transferring $4,079,751.93 from the departmental item for the former DEST in the annual Appropriation Act (No. 1) 2004-2005, $18,588,000.00 from the departmental item for the former DEST in the annual Appropriation Act (No. 1) 2007-2008, and $2,803,000.00 from the other departmental item (Equity Injections) for the former DEST in the annual Appropriation Act (No. 2) 2007-2008 to their respective items for DIISR.
Scope and Application
The FMA Act Determination 2008/58 pertains to the transfer of appropriations between two government departments as a result of administrative changes, specifically from the former Department of Education, Science and Training (DEST) to the Department of Innovation, Industry, Science and Research (DIISR). The determination is authorised under subsection 32(2) of the Financial Management and Accountability Act 1997 and facilitates the amendment of annual Appropriation Acts to reflect the transfer of functions and associated appropriations. The amounts transferred are specified for the financial years 2004-2005 and 2007-2008, and include specific departmental items and equity injections. This legislative instrument is subject to consultation with the relevant departments as required by the Legislative Instruments Act 2003 and serves to ensure the financial management framework adapts to the structural changes within the Australian government.
Key Provisions
The main operative sections of this Determination, as outlined in Subsection 32(2) of the Financial Management and Accountability Act 1997 (FMA Act), empower the Minister for Finance and Deregulation to amend Schedules to annual Appropriation Acts. This is done to facilitate the transfer of appropriations related to the movement of functions between agencies under the FMA Act. This authority has been delegated to the Secretary of the Department of Finance and Deregulation under section 62 of the FMA Act. The specific determination involves the amendment of Schedules in the annual Appropriation Acts to reflect the administrative changes resulting from the Special Gazette No. S254 and the administrative arrangements order of 3 December 2007, which led to the abolition and establishment of various Departments of State. The primary purpose is to transfer appropriations from the former Department of Education, Science and Training (DEST) to the Department of Innovation, Industry, Science and Research (DIISR).
The obligations and requirements imposed by this Act primarily revolve around the transfer of specific amounts from the former DEST to the DIISR as per the outlined appropriation amounts. These transfers are detailed in the annual Appropriation Acts (No. 1) 2004-2005, (No. 1) 2007-2008, and (No. 2) 2007-2008. For instance, $4,079,751.93 from the departmental item of the former DEST was transferred to the departmental item of DIISR in the 2004-2005 Appropriation Act. Similarly, $18,588,000.00 and $2,803,000.00 were transferred from the departmental item and the other departmental item (Equity Injections) of the former DEST to the corresponding items of DIISR in the 2007-2008 Appropriation Acts. The Departments involved were consulted in the preparation of this Determination as mandated by the Legislative Instruments Act 2003.
Regarding the potential consequences for breach, the document does not explicitly detail specific offences, penalties, or consequences for non-compliance with the provisions of this Determination. However, it does state that the Determination is a legislative instrument under the Legislative Instruments Act 2003, implying that any breaches of the legislative requirements could lead to legal repercussions. Such repercussions may include civil or criminal penalties as determined by relevant laws governing the administration and enforcement of legislative instruments in Australia. While the exact penalties are not specified in the Determination itself, the legal framework in place would apply standard penalties associated with non-compliance with legislative instruments.