Overview
The Financial Management and Accountability Act 1997 was enacted to provide a framework for the management of Commonwealth finances and to ensure accountability for the use of public funds. This Act was introduced to address the need for clear and efficient financial management practices within government agencies. The Financial Management and Accountability Act 1997 was passed by the Parliament of Australia to establish a robust system for the management of financial resources and to ensure transparency and accountability in the allocation and use of public funds. The policy objective of the Act is to facilitate effective financial management and to promote accountability in the administration of public finances. The 2012 Determination under Section 32 of the Act was made by the Secretary of the Department of Finance, as delegated by the Minister for Finance and Deregulation, to amend the Appropriation Acts in response to the transfer of functions from the Australian Building and Construction Commissioner (ABCC) to the Office of the Fair Work Building Industry Inspectorate (FWBII) following the abolition of ABCC. This amendment reflects the reallocation of budgetary provisions to accommodate the change in agency responsibilities.
Scope and Application
The Financial Management and Accountability Act 1997 Determination 2012/22 – Section 32 (Transfer of Functions from ABCC to FWBII), made on 21 June 2012, pertains to the amendment of Appropriation Acts to facilitate the transfer of specific functions from the Office of the Australian Building and Construction Commissioner (ABCC) to the Office of the Fair Work Building Industry Inspectorate (FWBII). This legislative instrument is underpinned by the authority granted under the Financial Management and Accountability Act 1997 (FMA Act), with the Minister for Finance and Deregulation, delegated through the Secretary of the Department of Finance and Deregulation, utilising their powers to amend appropriation schedules. The instrument specifically reduces the funding allocations for the ABCC and increases those for the FWBII, reflecting the reallocation of duties following the dissolution of the ABCC as of 31 May 2012. The consultation process involved both the ABCC and FWBII, ensuring that the changes align with the legislative intent and operational requirements post-transfer. This Determination is exempt from disallowance and does not require a Human Rights Impact Statement as per the relevant legislative frameworks.
Key Provisions
The main operative sections of this legislation, as detailed in the Explanatory Statement, involve amendments to the Appropriation Acts for the years 2010-2011 and 2011-2012. Specifically, Section 32 of the Financial Management and Accountability Act 1997 (FMA Act) enables the Minister for Finance and Deregulation to make determinations regarding the transfer of functions between agencies. In this instance, the determination pertains 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). Schedule 1 of the Instrument reduces the departmental item for ABCC by $1,764,060.97 for the 2010-2011 fiscal year, while Schedule 2 reduces ABCC's departmental item by $340,378.43 for the 2011-2012 fiscal year and increases FWBII's departmental item by $2,104,439.40 for the same period.
The Act imposes certain obligations and requirements on the parties involved. For example, it mandates consultation between ABCC and FWBII during the preparation of the legislative instrument, as per the Legislative Instruments Act 2003. Additionally, the Secretary of the Department of Finance and Deregulation, having been delegated this authority under section 53 of the FMA Act, is required to ensure that the financial implications of the transfer are accurately reflected in the appropriation acts. This includes the specific adjustments to the departmental items for both ABCC and FWBII, as outlined in the schedules of the instrument.
The legislation also specifies certain consequences for breaches, although the text does not detail specific offences or penalties. It is noted that the instrument is exempt from disallowance under subsection 32(7) of the FMA Act, which implies that it has a certain level of legal force and effect without the need for parliamentary scrutiny. Moreover, because this instrument is exempt from disallowance, a statement of compatibility prepared under subsection 9(1) of the Human Rights (Parliamentary Scrutiny) Act 2011 is not required. This indicates that the legal framework in which these amendments are made allows for certain streamlined processes, reducing the administrative burden on the government while ensuring the changes are legally sound.