Financial Management and Accountability Act 1997 Determination 2012/21 - Section 32 (Transfer of Functions from ORER to CER)

Overview

The Financial Management and Accountability Act 1997, enacted to address the need for robust financial management and accountability in Australian government agencies, was amended through the 2012 Determination 21. This legislative instrument, made by the Secretary of the Department of Finance and Deregulation under delegated authority, facilitates the transfer of functions and appropriations between the Office of the Renewable Energy Regulator and the Clean Energy Regulator. The determination was enacted to support the government's decision to establish the Clean Energy Regulator and to transfer functions related to the administration and regulation of the national renewable energy target scheme. The instrument reduces appropriations for the Office of the Renewable Energy Regulator and increases them for the Clean Energy Regulator, reflecting the reallocation of resources and responsibilities. The purpose of the instrument is to ensure a smooth transition of functions and financial resources as mandated by the government's policy objectives in the renewable energy sector.

Scope and Application

The Financial Management and Accountability Act 1997 Determination 2012/21 pertains to the reallocation of financial resources following the transfer of specific regulatory functions from the Office of the Renewable Energy Regulator (ORER) to the Clean Energy Regulator (CER). This legislation affects the budgetary allocations for both ORER and CER, impacting their departmental and administered items within the specified Appropriation Acts for the years 2010-2011 and 2011-2012. The determination reduces the departmental items for ORER and increases those for CER, along with transferring specific administered items. This adjustment reflects the government's decision to streamline and enhance the regulation of the national renewable energy target scheme under the CER. The instrument extends its reach to the appropriations as outlined in the relevant Appropriation Acts and does not include any explicit exclusions or thresholds within the provided text. The determination, as a legislative instrument, adheres to the Legislative Instruments Act 2003 and is exempt from disallowance under the Financial Management and Accountability Act 1997.

Key Provisions

The main operative sections of this instrument are Schedule 1, 2 and 3 of the Determination, which amend the Appropriation Acts to reflect the transfer of functions from ORER to CER. Specifically, Schedule 1 reduces the departmental item for ORER by $1,705,843.83 in Appropriation Act (No. 1) 2010-2011. Schedule 2 reduces the departmental item for ORER by $1,556,194.01 and increases the departmental item for CER by $3,262,037.84 in Appropriation Act (No. 1) 2011-2012, and transfers an amount of $1,038,506.93 of the administered item Outcome 1 from ORER to CER. Schedule 3 transfers an amount of $119,800.00 of “Equity Injections” from ORER to CER in Appropriation Act (No. 2) 2011-2012. The Act imposes certain obligations on the parties involved in the transfer of functions from ORER to CER. ORER and CER were consulted in the preparation of this instrument, in accordance with Part 3 of the Legislative Instruments Act 2003. The instrument is a legislative instrument for the purposes of section 5 of the Legislative Instruments Act 2003. The transfer of appropriations is made due to a Government decision to establish the Clean Energy Regulator and to transfer the functions that administer and regulate the national renewable energy target scheme from the Office of the Renewable Energy Regulator to the Clean Energy Regulator. Breach of the provisions of this instrument may result in civil or criminal consequences. However, this instrument is exempt from disallowance under subsection 32(7) of the Financial Management and Accountability Act 1997, and as such, a statement of compatibility prepared under subsection 9(1) of the Human Rights (Parliamentary Scrutiny) Act 2011 is not required in this Explanatory Statement. The maximum penalties for breaches of the FMA Act are not specified in this instrument.