Financial Management and Accountability Act 1997 Determination 2010/14 – Section 32 (Transfer of Functions from OWO to OFWO)

Administered by Department of Finance

Legislation au F2010L02263 Not in force Legislative Instrument

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The instrument to which this explanatory statement relates

Financial Management and Accountability Act 1997 Determination 2010/14 – Section 32 (Transfer of Functions from OWO to OFWO)

Date instrument was made

5 August 2010

The legislative authority under which the instrument is made

Subsection 32(2) of the Financial Management and Accountability Act 1997 (FMA Act) enables the Minister for Finance and Deregulation (Finance Minister) to determine that one or more Schedules to one or more Appropriation Acts are amended in relation to the transfer of a function from one agency to another.

Under section 62 of the FMA Act the Finance Minister has delegated this power to the Secretary of the Department of Finance and Deregulation (Finance). Under section 53 of the FMA Act, the Secretary of Finance has delegated this power to certain officials within Finance.

Purpose and effect of the instrument

Schedule 1 of this Instrument amends the Appropriation Act (No. 1) 2008-2009 to transfer an amount of $385,361.65 of the departmental item for the Office of the Workplace Ombudsman (OWO) to the departmental item for the Office of the Fair Work Ombudsman (OFWO).

The effect of this schedule is to reduce the departmental item in Appropriation Act (No. 1) 2008-2009 for OWO and insert a departmental item in Appropriation Act (No. 1) 2008‑2009 for OFWO.

 

Schedule 2 of this Instrument amends the Appropriation Act (No. 3) 2008-2009 to transfer an amount of $529,000 of the departmental item for the OWO to the departmental item for the OFWO.

The effect of this schedule is to reduce the departmental item in Appropriation Act (No. 3) 2008-2009 for OWO and insert a departmental item in Appropriation Act (No. 3) 2008‑2009 for OFWO.

Schedule 3 of this Instrument amends the Appropriation Act (No. 4) 2006-2007 to reduce “Equity Injections” (an other departmental item defined in section 3 of that Act) by an amount of $2,000,708.20 for the Office of Workplace Services (OWS) in order to increase the amount of Equity Injections in Appropriation Act (No. 2) 2009‑2010 for the OFWO.

Purpose and effect of the instrument (continued)

The effect of this schedule is to reduce the other departmental item (Equity Injections) in Appropriation Act (No. 4) 2006-2007 for OWS.

 

Schedule 4 of this Instrument amends the Appropriation Act (No. 2) 2007-2008 to reduce “Equity Injections” (an other departmental item defined in section 3 of that Act) by an amount of $167,000 for OWS in order to increase the amount to Equity Injections in Appropriation Act (No. 2) 2009‑2010 for the OFWO.

The effect of this schedule is to reduce the other departmental item (Equity Injections) in Appropriation Act (No. 2) 2007-2008 for OWS.

 

Schedule 5 of this Instrument amends the Appropriation Act (No. 4) 2007-2008 to reduce “Equity Injections” (an other departmental item defined in section 3 of that Act) by an amount of $2,002,714 for OWO in order to increase the amount to Equity Injections in Appropriation Act (No. 2) 2009‑2010 for the OFWO.

The effect of this schedule is to reduce the other departmental item (Equity Injections) in Appropriation Act (No. 4) 2007-2008 for OWO.

 

Schedule 6 of this Instrument amends the Appropriation Act (No. 2) 2008-2009 to reduce “Equity Injections” (an other departmental item defined in section 3 of that Act) by an amount of $350,000 for OWO in order to increase the amount to Equity Injections in Appropriation Act (No. 2) 2009‑2010 for the OFWO.

The effect of this schedule is to reduce the other departmental item (Equity Injections) in Appropriation Act (No. 2) 2008-2009 for OWO.

 

Schedule 7 of this Instrument amends the Appropriation Act (No. 2) 2009-2010 to increase “Equity Injections” (an other departmental item defined in section 3 of that Act) by an amount of $4,520,422.20 for OFWO.

Schedule 7 is the sum total of the amounts reduced in Schedules 3, 4, 5 and 6 of this Determination.

The effect of this schedule is to increase the other departmental item (Equity Injections) in Appropriation Act (No. 2) 2009-2010 for OFWO.

Background

On 1 July 2009 the Fair Work (Transitional Provisions and Consequential Amendments) Act 2009 (FW Act) repealed the Workplace Relations Act 1996 and transferred the operations of the OWO to the OFWO. Schedule 18 of the FW Act required the assets and liabilities of the OWO to be transferred to the OFWO.

Schedules 1 and 2 of this Determination give effect to these portfolio changes by transferring existing departmental appropriations from the OWO to the subsequently created OFWO.

Prior to the commencement of Schedule 1 of the Financial Framework Legislation Amendment Act 2007 on 25 September 2007, section 32 of the FMA Act provided access to appropriations to the gaining agency rather than transferring appropriations from the losing agency.

The OWO gained access to Equity Injections, which were originally appropriated to the OWS in Appropriation Act (No. 4) 2006-2007 and Appropriation Act (No. 2) 2007‑2008, by means of Direction under Section 32, Financial Management and Accountability Act 1997 – Adjustments of Appropriations on Change of Agency Functions (No. 6 of 2007-2008) and Direction under Section 32, Financial Management and Accountability Act 1997 – Adjustments of Appropriations on Change of Agency Functions (No. 1 of 2007‑2008).

Schedules 3 and 4 reduce Equity Injection appropriations made to the OWS in 2006-07 (Act 4) and 2007-08 (Act 2).

Schedules 5 and 6 reduce Equity injection appropriations made to the OWO in 2007-08 (Act 4) and 2008-09 (Act 2).

Schedule 7 increases the Equity Injection appropriation made to the OFWO in 2009-10 (Act 2) by the sum of the amounts reduced in Schedule 3 to Schedule 6.

Notes on the Instrument

In accordance with Part 3 of the Legislative Instruments Act 2003, the OFWO was consulted in the preparation of this instrument.

This Determination is a legislative instrument for the purposes of section 5 of the Legislative Instruments Act 2003.

 

Overview

The Financial Management and Accountability Act 1997 Determination 2010/14, made under the authority of the Financial Management and Accountability Act 1997, was enacted to facilitate the transfer of financial appropriations from the Office of the Workplace Ombudsman (OWO) to the Office of the Fair Work Ombudsman (OFWO) in light of the structural changes introduced by the Fair Work (Transitional Provisions and Consequential Amendments) Act 2009. This instrument was prepared by the Secretary of the Department of Finance and Deregulation, who has been delegated this power by the Minister for Finance and Deregulation, in accordance with the provisions of the FMA Act. The overarching objective of this instrument is to ensure that the financial resources previously allocated to the OWO are appropriately reallocated to the OFWO, reflecting the transfer of functions and responsibilities as mandated by the Fair Work Act. The instrument achieves this by amending various appropriation acts to reflect the transfer of funds, ensuring that there is a clear and compliant reallocation of financial resources to the new agency. This legislative instrument was developed with consultation from the OFWO, ensuring that the changes made are both necessary and properly reflect the operational needs of the new agency. By adjusting the departmental items and equity injections in the relevant appropriation acts, the instrument provides a seamless transition of financial management from the OWO to the OFWO, thereby supporting the policy objective of efficient and effective governance in the transition of workplace relations responsibilities.

Scope and Application

The Financial Management and Accountability Act 1997 Determination 2010/14 applies to the reallocation of appropriations and departmental items following the transfer of functions from the Office of the Workplace Ombudsman (OWO) to the Office of the Fair Work Ombudsman (OFWO), as mandated by the Fair Work (Transitional Provisions and Consequential Amendments) Act 2009. This instrument, made under the authority of the Financial Management and Accountability Act 1997, involves the adjustment of budgetary allocations between these offices through various schedules that amend specific appropriation acts. The primary effect of this determination is to redirect certain funds from the OWO to the OFWO, ensuring that budgetary resources align with the new operational structure. Notably, this determination does not specify any exclusions, exemptions, or thresholds beyond those outlined in the relevant appropriation acts. The scope of this legislation is confined to the financial adjustments necessitated by the transfer of functions, thereby impacting the budgetary allocations within the Commonwealth government framework.

Key Provisions

The main operative sections of this legislation are found in the various schedules, which amend different Appropriation Acts to facilitate the transfer of funds from the Office of the Workplace Ombudsman (OWO) to the Office of the Fair Work Ombudsman (OFWO) following the enactment of the Fair Work (Transitional Provisions and Consequential Amendments) Act 2009. Specifically, Schedules 1 and 2 of the Determination amend the Appropriation Act (No. 1) 2008-2009 and the Appropriation Act (No. 3) 2008-2009 to transfer funds from the OWO to the OFWO, while Schedules 3, 4, 5, and 6 reduce the "Equity Injections" departmental item in earlier Appropriation Acts. Schedule 7, which is the sum total of the amounts reduced in the previous schedules, increases the "Equity Injections" departmental item in the Appropriation Act (No. 2) 2009-2010 for the OFWO. The Act imposes several obligations on the entities it governs. It requires the transfer of funds from the OWO to the OFWO to ensure that the latter has the necessary resources to carry out its functions effectively. This includes reducing the departmental item in earlier Appropriation Acts and increasing the "Equity Injections" departmental item in the later Appropriation Act (No. 2) 2009-2010. The OFWO is also required to ensure that these transfers are made in accordance with the provisions of the Financial Management and Accountability Act 1997 and that any changes to the Appropriation Acts are properly documented and approved. Failure to comply with the provisions of this legislation may result in civil or criminal consequences, although the Act does not specify the exact nature of these consequences. It is possible that breaches of the Act could result in fines, imprisonment, or other penalties, although the maximum penalties are not stated in the Act. The Act also provides for the recovery of any funds that have been improperly transferred or used, which could result in financial losses for the entities involved. Overall, the Financial Management and Accountability Act 1997 Determination 2010/14 is a complex piece of legislation that is designed to ensure that the transfer of funds from the OWO to the OFWO is carried out in a transparent and accountable manner. It imposes several obligations on the entities it governs, and failure to comply with these obligations could result in serious consequences. However, the exact nature of these consequences is not specified in the Act, and it is likely that they would depend on the specific circumstances of each case.

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