EXPLANATORY STATEMENT
Financial Management and Accountability Act 1997
FMA Act Determination 2013/20 — Section 32 (Transfer of Functions from DEEWR to Education and Employment) (the Determination)
Purpose of the Determination
The Determination is made under section 32 of the Financial Management and Accountability Act 1997 (FMA Act), to adjust amounts appropriated to particular agencies in response to the Administrative Arrangements Order made on 18 September 2013.
The Determination further adjusts appropriations to support functions transferring from the former Department of Education, Employment and Workplace Relations to:
the Department of Education (Education), in relation to education; and
the Department of Employment (Employment), in relation to employment.
This Determination is the third transfer of appropriations in relation to the abolition of the Department of Education, Employment and Workplace Relations. An initial transfer of appropriations occurred on 18 September 2013, under FMA Act Determination 2013/06 — Section 32 (Transfer of Functions from DEEWR to Education and Employment). A second transfer of appropriations commenced on 1 December 2013, under FMA Act Determination 2013/19 — Section 32 (Transfer of Functions from DEEWR to PM&C). The further movement of appropriations will occur in due course.
Transfer of Functions generally
Section 32 of the FMA Act enables the Finance Minister to determine that one or more Schedules to one or more Appropriation Acts are amended in a specified way 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 the power to make determinations under section 32 to the Secretary of the Department of Finance. Under section 53 of the FMA Act, the Secretary has, in turn, sub‑delegated this power to certain Senior Executive Service officials within the Department of Finance, including the official who made the Determination.
The Determination is a legislative instrument for the purposes of section 5 of the Legislative Instruments Act 2003.
Statement of Compatibility with Human Rights
A Statement of Compatibility with Human Rights is not required for the Determination.
Subsection 9(1) of the Human Rights (Parliamentary Scrutiny) Act 2011 requires a Statement of Compatibility with Human Rights for all legislative instruments subject to disallowance under
section 42 of the Legislative Instruments Act 2003. A determination under section 32 of the FMA Act is exempt from disallowance under subsection 32(7) of the FMA Act. As such, a Statement of Compatibility with Human Rights is not required.
Consultation and Impact
Consistent with Part 3 of the Legislative Instruments Act 2003, Education and Employment were consulted in the preparation of the Determination.
Summary of Changes
The Determination affects Schedule 1 to the Appropriation Act (No. 1) 2013-2014 in the following way, which results in no change to the total amount appropriated by Parliament:
Agency affected | Item affected | Appropriation Act | Transfer to $ ’000 | Transfer from $ ’000 |
Department of Education | Administered item, Outcome 1 | Appropriation Act (No. 1) 2013-2014 | +122,895 | |
Department of Education, Employment and Workplace Relations | Administered item, Outcome 1 | Appropriation Act (No. 1) 2013-2014 | | -122,895 |
Department of Education | Administered item, Outcome 2 | Appropriation Act (No. 1) 2013-2014 | +87,033 | |
Department of Education, Employment and Workplace Relations | Administered item, Outcome 2 | Appropriation Act (No. 1) 2013-2014 | | -87,033 |
Department of Employment | Administered item, Outcome 1 | Appropriation Act (No. 1) 2013-2014 | +310,900 | |
Department of Education, Employment and Workplace Relations | Administered item, Outcome 3 | Appropriation Act (No. 1) 2013-2014 | | -310,900 |
Department of Employment | Administered item, Outcome 2 | Appropriation Act (No. 1) 2013-2014 | +10,806 | |
Department of Education, Employment and Workplace Relations | Administered item, Outcome 4 | Appropriation Act (No. 1) 2013-2014 | | -10,806 |
Department of Education | Departmental item | Appropriation Act (No. 1) 2013-2014 | +44,000 | |
Department of Employment | Departmental item | Appropriation Act (No. 1) 2013-2014 | +44,000 | |
Department of Education, Employment and Workplace Relations | Departmental item | Appropriation Act (No. 1) 2013-2014 | | -88,000 |
| | Total | +619,634 | -619,634 |
The Determination affects Schedule 2 to the Appropriation Act (No. 2) 2013-2014 in the following way, which results in no change to the total amount appropriated by Parliament:
Agency affected | Item affected | Appropriation Act | Transfer to $ ’000 | Transfer from $ ’000 |
Department of Education | State, ACT, NT and local government item, Outcome 2 | Appropriation Act (No. 1) 2013-2014 | +25,000 | |
Department of Education, Employment and Workplace Relations | State, ACT, NT and local government item, Outcome 2 | Appropriation Act (No. 1) 2013-2014 | | -25,000 |
| | Total | +25,000 | -25,000 |
Overview
The Financial Management and Accountability Act 1997 (FMA Act) was enacted to ensure robust financial management and accountability in the operation of the Commonwealth. The FMA Act Determination 2013/20, issued under section 32 of the FMA Act, was introduced to address the administrative restructuring of the Commonwealth by adjusting appropriations in response to the Administrative Arrangements Order dated 18 September 2013. This Determination transfers functions and related appropriations from the Department of Education, Employment and Workplace Relations to the Department of Education and the Department of Employment. The purpose of this legislative instrument is to ensure a smooth transition of responsibilities and funding in line with the new departmental structure. The determination was made by the Secretary of the Department of Finance, who was delegated this power by the Finance Minister under section 62 of the FMA Act. The Determination ensures that there is no net change to the total amount appropriated by Parliament, thereby maintaining fiscal integrity during the departmental transition.
Scope and Application
The FMA Act Determination 2013/20 — Section 32 (Transfer of Functions from DEEWR to Education and Employment) pertains to the redistribution of appropriations from the abolished Department of Education, Employment and Workplace Relations (DEEWR) to the newly established Department of Education and the Department of Employment. This Determination is made under section 32 of the Financial Management and Accountability Act 1997 (FMA Act) in response to the Administrative Arrangements Order of 18 September 2013. It facilitates the transfer of functions and associated appropriations, ensuring a smooth transition and continuity of services. The Determination does not alter the overall amount appropriated by Parliament but redistributes it among the affected departments to align with the new administrative structure. This transfer of appropriations is the third in a series concerning the abolition of DEEWR, following two previous transfers that occurred under FMA Act Determinations 2013/06 and 2013/19. The power to make such determinations is delegated by the Finance Minister to the Secretary of the Department of Finance, who has further sub-delegated this authority to specific officials within the Department.
Key Provisions
The FMA Act Determination 2013/20 — Section 32 (Transfer of Functions from DEEWR to Education and Employment) modifies appropriations in response to the administrative arrangements order of 18 September 2013, redistributing funds between the Department of Education, Employment and Workplace Relations and the new Departments of Education and Employment (sections 1-2). This adjustment is part of the broader restructuring following the dissolution of the former department. The Determination affects Schedule 1 of the Appropriation Act (No. 1) 2013-2014 and Schedule 2 of the Appropriation Act (No. 2) 2013-2014, with specific reallocations detailed in the Summary of Changes (section 5). The total appropriation by Parliament remains unchanged, with transfers between departments balancing out.
Under the FMA Act, the Finance Minister has the authority to amend appropriations related to the transfer of functions between agencies (section 32). The Secretary of the Department of Finance has been delegated this power and has further sub-delegated it to certain Senior Executive Service officials, who are responsible for making determinations such as this (sections 53 and 62). The process of transferring appropriations is governed by this legislative framework, ensuring that the reallocation is legally sound and authorised. The departments affected by this Determination, namely the Departments of Education and Employment, were consulted during the preparation of the Determination in accordance with the Legislative Instruments Act 2003 (section 8).
The primary obligation imposed by this Determination is the reallocation of specified funds between the Departments of Education, Employment, and the former Department of Education, Employment and Workplace Relations. The Department of Education gains appropriations for administered and departmental items, while the Department of Employment gains appropriations for administered items, reflecting the transfer of relevant functions (section 5). This reallocation must be executed in a manner that maintains the overall appropriation level set by Parliament, ensuring fiscal responsibility and transparency.
There are no direct offences, penalties, or civil/criminal consequences outlined for breach of this Determination. As a legislative instrument, the Determination is exempt from disallowance under subsection 32(7) of the FMA Act, which means that it does not require a Statement of Compatibility with Human Rights under the Human Rights (Parliamentary Scrutiny) Act 2011 (sections 9 and 10). The legal basis for the Determination ensures that the reallocations are authorised and do not contravene any existing legislative requirements.