Financial Management and Accountability Amendment Regulations 2009 (No. 6)

Overview

The Financial Management and Accountability Amendment Regulations 2009 (No. 6) were enacted to amend the Financial Management and Accountability Regulations 1997, which implement the Financial Management and Accountability Act 1997 (FMA Act). This Act was established to create a regulatory framework governing the management of public money and public property by Chief Executives and officials of FMA Act agencies. The 2009 amendment was introduced to address the need to update the details of Safe Work Australia (SWA) as a prescribed agency under the FMA Act. This change was necessitated by the transition of SWA from an Executive Agency to a Statutory Agency under the Public Service Act 1999, as stipulated by the Safe Work Australia Act 2008. The regulation aligns with the policy objective of facilitating the harmonisation of occupational health and safety laws across jurisdictions by SWA. The enacting body for these regulations is the Governor-General, acting under the authority conferred by Subsection 65(1) of the FMA Act.

Scope and Application

The Financial Management and Accountability Amendment Regulations 2009 (No. 6) pertain to the Financial Management and Accountability Act 1997 (FMA Act), which is designed to govern the proper management of public money and public property by the Chief Executives and officials of agencies prescribed under the FMA Act. The amendment regulations specifically address the inclusion of Safe Work Australia (SWA) as a prescribed agency under the FMA Act. This amendment is necessary due to the transition of SWA from an Executive Agency to a Statutory Agency under the Public Service Act 1999, as established by the Safe Work Australia Act 2008. This legislative change ensures that SWA, which plays a crucial role in the harmonisation of occupational health and safety laws across jurisdictions, is appropriately managed under the financial oversight provided by the FMA Act. The regulations will come into effect on the day fixed by proclamation, aligning with the commencement of relevant sections of the Safe Work Australia Act 2008.

Key Provisions

The main operative sections of these Regulations pertain to the amendment of Schedule 1 to the Financial Management and Accountability Regulations 1997 (paragraphs 1 and 2). Specifically, section 3 of the Regulations updates the details of Safe Work Australia (SWA) as a prescribed Agency under the Financial Management and Accountability Act 1997 (FMA Act). This amendment is necessary as SWA's status changes from an Executive Agency under the Public Service Act 1999 to a Statutory Agency under the Safe Work Australia Act 2008. By updating Schedule 1, the Regulations ensure that SWA is recognised as a prescribed Agency under the FMA Act, thereby aligning with its new legislative framework and its role in harmonising occupational health and safety laws across jurisdictions. The obligations and requirements imposed by these Regulations primarily involve updating the administrative framework to reflect SWA's new status. The Regulations ensure that SWA is included in Schedule 1 of the Principal Regulations, which delineates the bodies, organisations, or groups of persons that are prescribed Agencies under the FMA Act. By doing so, the Regulations facilitate the application of the FMA Act's provisions to SWA, thereby ensuring that SWA adheres to the financial management and accountability standards set forth by the FMA Act. This inclusion is essential for maintaining consistency in the management of public money and public property across various agencies. Any breach of the Financial Management and Accountability Act 1997 can lead to significant civil and criminal consequences. Under section 13 of the FMA Act, any person who contravenes a provision of the Act, or fails to comply with a direction given under the Act, is liable to a penalty. The maximum penalty for individuals is generally $21,000, while for bodies corporate, the penalty can be up to $105,000 (section 13(2)). Additionally, officers of a body corporate who are responsible for the contravention can face personal penalties (section 13(3)). Furthermore, section 14 of the FMA Act allows for the recovery of pecuniary penalties through civil proceedings, and section 15 provides for the imposition of additional penalties by the courts. These provisions underscore the importance of compliance with the FMA Act and the potential legal ramifications for non-compliance.