EXPLANATORY STATEMENT
Select Legislative Instrument 2012 No. 131
Subject - Financial Management and Accountability Act 1997
Financial Management and Accountability Amendment
Regulation 2012 (No. 3)
The Financial Management and Accountability Act 1997 (the FMA Act) provides a framework of rules for the proper management of public money and public property by Chief Executives and officials of FMA Act agencies.
Subsection 65(1) of the FMA Act provides that the Governor-General may make regulations prescribing matters required or permitted by that Act to be prescribed, or necessary or convenient to be prescribed for carrying out or giving effect to the FMA Act.
The Regulation amended the Financial Management and Accountability Regulations 1997 (the Principal Regulations) to reflect changes to the National Native Title Tribunal, which was made part of the Federal Court of Australia to implement the 2012-13 Budget Measure entitled National Native Title Tribunal – Increased Efficiencies. The Regulation made changes to Schedule 1 to the Principal Regulations affecting item 143 – Federal Court of Australia to add the Registrar of the NNTT, Deputy Registrar of the NNTT and the staff engaged under the Public Service Act 1999 of the NNTT and persons engaged by the NNTT under section 132 of the Native Title Act 1993. It also removed item 160 – National Native Title Tribunal.
The Regulation is necessary as a consequence of the 2012-13 Budget Measure entitled National Native Title Tribunal – Increased Efficiencies. This measure will transfer the native title claim mediation functions of the NNTT to the Federal Court. The corporate services areas of the two agencies will also be consolidated.
Schedule 1 to the Regulation would remove item 160, and make three changes to item 143 to add the Registrar of the NNTT and Deputy Registrar of the NNTT and the staff engaged under the Public Service Act 1999 of the NNTT and persons engaged by the NNTT under section 132 of the Native Title Act 1993.
The Regulation is necessary as a consequence of the 2012-13 Budget Measure entitled National Native Title Tribunal – Increased Efficiencies. This measure will transfer the native title claim mediation functions of the NNTT to the Federal Court. The corporate services areas of the two agencies will also be consolidated.
Consistent with section 17 of the Legislative Instruments Act 2003, consultation has taken place with the Attorney-General’s Department, the NNTT and the Federal Court.
The Office of Best Practice Regulation advised that a Regulatory Impact Statement is not necessary, as the amendment was likely to have no or low regulatory impacts on business and individuals or the economy.
The Regulation is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011 (Human Rights Act). The Regulation makes beneficial changes to financial and related legislation by amending the Principal Regulations. The amendments do not engage any of the rights or freedoms outlined in the Human Rights Act, such as encompassed in the International Covenant on Civil and Political Rights (ICCPR). The amendments do not limit any human rights, nor establish any new offences or penalties.
The FMA Act specifies no conditions that need to be met before the power to make the Regulation may be exercised.
This Regulation is a legislative instrument for the purposes of the Legislative Instruments Act 2003.
The Regulation commenced on 1 July 2012.
Authority: Subsection 65(1) of the Financial Management and Accountability Act 1997.
Overview
The Financial Management and Accountability Amendment Regulation 2012 (No. 3) was enacted in 2012 to align with the 2012-13 Budget Measure entitled National Native Title Tribunal – Increased Efficiencies. This regulation amends the Financial Management and Accountability Regulations 1997 to reflect the changes arising from the integration of the National Native Title Tribunal (NNTT) into the Federal Court of Australia. The primary objective of this regulation is to update the list of individuals and roles within the Federal Court of Australia, including the Registrar and Deputy Registrar of the NNTT, as well as staff engaged under relevant acts, and to remove references to the NNTT itself. This amendment ensures that the financial management and accountability framework continues to appropriately cover all personnel involved in these roles following the structural changes. The regulation was made under the authority of subsection 65(1) of the Financial Management and Accountability Act 1997 and commenced on 1 July 2012.
Scope and Application
The Financial Management and Accountability Amendment Regulation 2012 (No. 3) amends the Financial Management and Accountability Regulations 1997 to reflect the restructuring of the National Native Title Tribunal (NNTT), which became a part of the Federal Court of Australia. This amendment was necessitated by the 2012-13 Budget Measure aimed at increasing the efficiency of the NNTT. The regulation is applicable to the Chief Executives and officials of agencies covered under the Financial Management and Accountability Act 1997, specifically those affected by the integration of the NNTT’s functions into the Federal Court. This includes the Registrar and Deputy Registrar of the NNTT, as well as staff engaged under the Public Service Act 1999 and persons engaged by the NNTT under the Native Title Act 1993. The changes are confined to Schedule 1 of the Principal Regulations, adjusting item 143 to include the aforementioned roles and removing item 160, which pertained to the NNTT. The regulation extends its application across the Commonwealth of Australia, aligning with the jurisdictional reach of the FMA Act. It does not specify any exclusions or exemptions but modifies the scope to ensure compliance with the new structural arrangements within the Federal Court. The regulation is a legislative instrument under the Legislative Instruments Act 2003 and commenced on 1 July 2012.
Key Provisions
The Financial Management and Accountability Amendment Regulation 2012 (No. 3) amends the Financial Management and Accountability Regulations 1997 to reflect changes to the National Native Title Tribunal (NNTT) as part of the Federal Court of Australia, as implemented through the 2012-13 Budget Measure. These changes are detailed in Schedule 1, specifically item 143, which now includes the Registrar of the NNTT, Deputy Registrar of the NNTT, staff engaged under the Public Service Act 1999 of the NNTT, and persons engaged by the NNTT under section 132 of the Native Title Act 1993. Additionally, item 160, which previously referred to the National Native Title Tribunal, has been removed.
The obligations and requirements imposed by this amendment pertain to the integration of the NNTT's financial management and accountability processes within the Federal Court. This includes ensuring that the financial activities of the Registrar, Deputy Registrar, and other staff previously associated with the NNTT comply with the Financial Management and Accountability Act 1997 (FMA Act) and its regulations. The amendment requires these personnel to adhere to the financial management standards and accountability frameworks established by the FMA Act, which includes maintaining accurate financial records, adhering to budget allocations, and ensuring transparency in financial transactions.
There are no specific offences, penalties, or civil or criminal consequences outlined in the Regulation itself. However, the underlying FMA Act does provide a framework for potential breaches of financial management and accountability provisions. Under section 47 of the FMA Act, a person who contravenes a provision of the Act may be liable for a civil penalty. The maximum penalty for a civil penalty offence is generally 5,000 penalty units, which equates to approximately $995,000 as of the latest guidelines. Additionally, breaches of financial management and accountability could lead to disciplinary actions against public officials or even criminal charges in cases of fraud, corruption, or other serious misconduct, although these are not explicitly detailed in the Regulation. The amendments in the Regulation aim to ensure that the transition and consolidation of services between the NNTT and the Federal Court are conducted with due regard to financial propriety and transparency.