Overview
The Financial Management and Accountability Act 1997 was enacted to provide a framework for the financial management and accountability of Commonwealth entities, ensuring transparency and efficiency in the use of public funds. This Act was introduced to address the need for robust financial oversight and accountability within the federal government, aiming to prevent misuse of public resources and to ensure that government funds are used effectively and responsibly. The Financial Management and Accountability Act 1997 was enacted by the Parliament of Australia, reflecting the policy objective of maintaining high standards of financial management and accountability across all Commonwealth entities. This legislative instrument, specifically the 2012 Determination, aims to facilitate the transfer of functions and associated appropriations from the Office of the Australian Building and Construction Commissioner (ABCC) to the Office of the Fair Work Building Industry Inspectorate (FWBII), as part of a broader government restructuring.
Scope and Application
The Financial Management and Accountability Act 1997 Determination 2012/17, specifically relating to the transfer of functions from the Australian Building and Construction Commissioner (ABCC) to the Fair Work Building Industry Inspectorate (FWBII), applies to the operations and budgetary allocations of these two government entities. This instrument, made on 4 May 2012, affects the allocation of funds within the Appropriation Acts (No. 1) 2010-2011 and 2011-2012. The primary purpose of this determination is to facilitate the reallocation of $8,500,000.00 from the ABCC to the FWBII in the 2010-2011 financial year and $35,593,298.00 in the 2011-2012 financial year, while correspondingly increasing the budget for the FWBII by the same amounts. This transfer aligns with the government's decision to abolish the ABCC and consolidate its functions within the FWBII, effective from 31 May 2012. The instrument does not extend to any other entities or functions outside of these specified budgetary reallocations and the transfer of duties.
Key Provisions
The main operative sections of the Financial Management and Accountability Act 1997 Determination 2012/17 (F2012L01154) pertain to the transfer of functions from the Office of the Australian Building and Construction Commissioner (ABCC) to the Office of the Fair Work Building Industry Inspectorate (FWBII). Under section 32(2) of the FMA Act, the Minister for Finance and Deregulation has the authority to amend Appropriation Acts to facilitate this transfer. Specifically, Schedule 1 of the Determination reduces the departmental item for ABCC by $8,500,000.00 in the Appropriation Act (No. 1) 2010-2011, while Schedule 2 reduces the departmental item for ABCC by $35,593,298.00 in the Appropriation Act (No. 1) 2011-2012 and increases the departmental item for FWBII by $44,093,298.00 in the same Act. This effectively reallocates resources and functions from ABCC to FWBII.
The obligations and requirements imposed by this Determination are primarily administrative, as it mandates the reallocation of funds and functions between two government agencies. The Secretary of the Department of Finance and Deregulation, who has been delegated the authority to make such determinations under section 62 of the FMA Act, ensures that the financial implications of these transfers are accurately reflected in the relevant appropriation acts. The consultation process with ABCC and FWBII as stipulated in the Legislative Instruments Act 2003 ensures that the agencies affected by these changes are aware and in agreement with the reallocation.
In terms of consequences for non-compliance, this Determination does not create specific offences or penalties since it is primarily a financial reallocation instrument. However, any failure to comply with the appropriations as amended by this Determination could potentially lead to financial mismanagement, which might be subject to scrutiny and corrective actions under other provisions of the FMA Act. The maximum penalties for breaches under the FMA Act could include fines and imprisonment, though these are not explicitly detailed within the context of this particular Determination.
This Determination is exempt from disallowance under subsection 32(7) of the FMA Act, meaning it is not subject to the usual parliamentary scrutiny for disallowance. Additionally, because it is exempt from disallowance, it does not require a statement of compatibility under the Human Rights (Parliamentary Scrutiny) Act 2011. This streamlines the process of implementing the transfer of functions and financial reallocation between ABCC and FWBII, ensuring a smoother transition as ABCC is abolished and its functions are absorbed by FWBII.