Financial Management and Accountability Amendment Regulations 2009 (No. 1)

Overview

The Financial Management and Accountability Amendment Regulations 2009 (No. 1) were enacted to amend the Financial Management and Accountability Regulations 1997, thereby incorporating Safe Work Australia (SWA) as a prescribed agency under the Financial Management and Accountability Act 1997. The primary purpose of this legislation is to ensure that SWA, an organisation responsible for developing model occupational health and safety laws for adoption across all jurisdictions, adheres to the same financial management standards as other prescribed agencies. This amendment was made in accordance with the authority granted by subsection 65(1) of the FMA Act, which allows the Governor-General to make regulations necessary for the effective implementation of the FMA Act. The regulations were developed following consultation with the Department of Education, Employment and Workplace Relations, and they came into effect on 1 July 2009, ensuring that SWA is subject to the same financial management and accountability requirements as other prescribed agencies under the FMA Act.

Scope and Application

The Financial Management and Accountability Amendment Regulations 2009 (No. 1) serve to prescribe Safe Work Australia (SWA) as an agency under the Financial Management and Accountability Act 1997 (FMA Act). This legislative instrument, issued under the authority of the Minister for Finance and Deregulation, extends the scope of the FMA Act to include SWA, which is tasked with the development of model occupational health and safety laws for adoption across all jurisdictions. The inclusion of SWA in the list of prescribed agencies, as detailed in Schedule 1 of the Financial Management and Accountability Regulations 1997, ensures that this entity is subject to the same financial management and accountability standards as other prescribed agencies. The amendment is effective from 1 July 2009 and follows consultation with relevant departments, such as the Department of Education, Employment and Workplace Relations, in line with the requirements of the Legislative Instruments Act 2003. The regulations are designed to enhance the oversight and management of public funds and property within SWA, thereby maintaining the integrity and effectiveness of public financial management across Australia.

Key Provisions

The Financial Management and Accountability Amendment Regulations 2009 (No. 1) amend the Financial Management and Accountability Regulations 1997 by inserting Safe Work Australia (SWA) into the list of agencies prescribed under the Financial Management and Accountability Act 1997 (FMA Act). This amendment is made in accordance with subsection 65(1) of the FMA Act, which allows the Governor-General to make regulations prescribing matters required or permitted by the FMA Act. Specifically, the amendment is necessary to align the list of prescribed agencies with the role of SWA, which is responsible for developing model occupational health and safety laws to be adopted by all jurisdictions. As per section 5 of the FMA Act, a prescribed agency means a body, organisation, or group of persons prescribed by regulations for the purposes of the FMA Act. By inserting SWA into Schedule 1 of the Principal Regulations, the amending Regulations ensure that SWA is subject to the same financial management and accountability requirements as other prescribed agencies. The amending Regulations impose obligations and requirements on Safe Work Australia, bringing it under the purview of the FMA Act. As a prescribed agency, SWA must comply with the financial management and accountability provisions outlined in the FMA Act. This includes adhering to the standards for financial reporting, managing public money and public property with due care, and ensuring that financial records are accurate and complete. The regulations mandate that SWA maintain proper financial records and prepare financial statements that reflect the true and fair view of its financial position. Furthermore, SWA is required to implement internal controls and procedures to safeguard public money and property, ensuring that they are used for the purposes intended by the relevant legislation. Failure to comply with the provisions of the FMA Act and the Financial Management and Accountability Amendment Regulations 2009 (No. 1) can result in civil or criminal consequences. Under section 77 of the FMA Act, any person who contravenes the Act or the regulations may be liable to a civil penalty. The maximum penalty for a civil penalty offence under the FMA Act is $10,000 for an individual and $50,000 for a body corporate, as per section 79 of the Act. Additionally, if the breach is of a serious nature, it may also lead to criminal charges. Section 125 of the FMA Act provides that an individual officer who is reckless or dishonest in the performance of their duties may be guilty of an offence and liable to a maximum penalty of imprisonment for five years or a fine of up to $33,000, or both, as stated in section 126 of the Act. These penalties underscore the importance of compliance with the financial management and accountability requirements set forth by the FMA Act.