EXPLANATORY STATEMENT
Select Legislative Instrument 2005 No. 74
Issued by the authority of the Minister for Finance and Administration
Financial Management and Accountability Act 1997
Financial Management and Accountability Amendment Regulations 2005 (No. 2)
Subsection 65(1) of the Financial Management and Accountability Act 1997 (the Act) provides that the Governor-General may make regulations prescribing matters required or permitted by the Act to be prescribed, or necessary or convenient to be prescribed for carrying out or giving effect to the Act.
The Act provides a framework for the proper management of public money and public property that applies to Chief Executives and officials of Agencies.
The Regulations update the Financial Management and Accountability Regulations 1997 by:
- prescribing the Defence Materiel Organisation (DMO) for the purposes of the Act. As a prescribed Agency, the DMO would be financially autonomous from the Department of Defence and accountable under the Act for the proper management of public money and public property within its control or custody. This separate financial identity would allow the DMO to support Defence capabilities through the efficient and effective acquisition and through-life support of materiel; and
- removing the reference to the Aboriginal and Torres Strait Islander Commission (ATSIC) due to its abolition by the Aboriginal and Torres Strait Islander Commission Amendment Act 2005.
Further details of the Regulations are set out in the Attachment.
The Act specifies no conditions that need to be met before the power to make the Regulations may be exercised.
The Amendment Regulations are a legislative instrument for the purposes of the Legislative Instruments Act 2003 (Legislative Instruments Act).
In relation to section 17 of the Legislative Instruments Act, the Department of Defence was consulted on the proposed Regulations prescribing the DMO. No consultation was undertaken in relation to the proposed Regulation deprescribing ATSIC, as the proposed Regulation is a consequence of the Aboriginal and Torres Strait Islander Commission Amendment Act 2005. The Office of Regulation Review has advised that the preparation of a Regulation Impact Statement is not required as the proposed Regulations are unlikely to have a direct or significant indirect impact on business.
The Regulations commence:
- on the day they are registered regulations 1 to 3 and Schedule 1 (removing ATSIC); and
- on July 1 2005 Schedule 2 (prescribing DMO).
ATTACHMENT
Details of the Financial Management and Accountability Amendment Regulations 2005 (No. 2)
Regulation 1 - Name of Regulations
This regulation provides that the title of the Regulations is the Financial Management and Accountability Amendment Regulations 2005 (No. 2).
Regulation 2 - Commencement
The Regulations commence:
- on the day they are registered – regulations 1 to 3 and Schedule 1 (removing ATSIC); and
- on 1 July 2005 - Schedule 2 (prescribing DMO).
Regulation 3 - Amendment of Financial Management and Accountability Regulations 1997
This regulation provides that the Financial Management and Accountability Regulations 1997 (the Principal Regulations) are amended as set out in Schedules 1 and 2.
Schedule 1 – Amendment commencing on registration
Item [1] - Schedule 1, Part 2, item 201
The Aboriginal and Torres Strait Islander Commission is abolished by the Aboriginal and Torres Strait Islander Commission Amendment Act 2005 (the ATSIC Amendment Act). The ATSIC Amendment Act received the Royal Assent on 22 March 2005. Schedules 1 and 2 of the ATSIC Amendment Act, which abolish ATSIC, took effect on 24 March 2005. Consequently, it is necessary to remove ATSIC from the list of prescribed Agencies set out at Schedule 1 to the Principal Regulations.
This item removes item 201 from Part 2 of Schedule 1 to the Principal Regulations, which prescribes ATSIC and the Chief Executive Officer of ATSIC in the Principal Regulations.
Schedule 2 – Amendments commencing on 1 July 2005
Item [1] – Paragraph 4 (1) (a)
Paragraph 4 (1) (a) is amended to provide that a member of the Defence Force is allocated to the Department of Defence, unless the member’s services are made available to assist the Chief Executive Officer (CEO) of the Defence Materiel Organisation (DMO).
Item [2] - Schedule 1, Part 1, after item 122A
Item 122AB is inserted to prescribe the DMO. The DMO comprises the CEO, persons engaged under the Public Service Act 1999 to assist the CEO, and members of the Defence Force whose services are made available to assist the CEO.