Overview

The Financial Management and Accountability (Comcover Special Account) Amendment Determination 2000/14 was made by the Minister for Finance and Administration, John Joseph Fahey, under section 20 of the Financial Management and Accountability Act 1997. This Determination was enacted to amend the earlier Determination dated 7 April 1998, which established the Comcover Account, in light of changes introduced by the Financial Management Legislation Amendment Act 1999. The primary objective of this Determination was to reflect the conversion of the Comcover Reserve into a Special Account and to align the terminology and provisions of the Determination with the updated legislative framework. The amendment ensures that the Comcover Special Account operates within the current financial management requirements set out by the Act.

Scope and Application

The Financial Management and Accountability (Comcover Special Account) Amendment Determination 2000/14 applies to the Comcover Special Account, which was established as part of the Reserved Money Fund and was previously a component of the Comcover Reserve. This Determination amends the original Comcover Account Determination dated 7 April 1998, converting the Comcover Reserve into a Special Account and renaming it accordingly. The amendment applies to the Commonwealth of Australia, affecting financial management and accountability practices within this jurisdiction. The changes include modifications to the account's name, the method of crediting funds, and the conditions under which amounts may be debited from the Account, such as upon the realisation of an investment and the interest earned on such investments. The amendment does not specify any exclusions, exemptions, or thresholds, and its application extends to the specific provisions outlined in the attached Schedule. This Determination is made under section 20 of the Financial Management and Accountability Act 1997 and is effective as per section 22 of the same Act.

Key Provisions

The Financial Management and Accountability (Comcover Special Account) Amendment Determination 2000/14 primarily amends the existing Comcover Account Determination dated 7 April 1998. This determination (section 2) involves changing the terminology from "component of the Reserved Money Fund" to "Special Account" throughout the relevant sections. These amendments reflect the Financial Management Legislation Amendment Act 1999, which converted Reserves into Special Accounts and changed their names. The amendments ensure that the Comcover Reserve, previously a component of the Reserved Money Fund, is now recognised as a Special Account. This change formalises the account structure and ensures consistency with legislative updates. Under this Determination, the Comcover Special Account is governed by specific rules regarding crediting and debiting of funds. For instance, section 1(a) outlines that funds are credited to the Account from various sources, including payments for Comcover premiums and interest earned on investments. Furthermore, section 1(b) specifies that amounts may be debited from the Account for purposes such as payments for Comcover claims and the transfer of surplus funds to the Consolidated Revenue Fund. These provisions establish clear guidelines for the management and use of funds within the Comcover Special Account. The Determination imposes several obligations on the parties involved, primarily the Minister for Finance and Administration, who is responsible for making this Determination under section 20 of the Financial Management and Accountability Act 1997. The Minister must ensure that the amendments are implemented correctly and that the Account is managed in accordance with the specified provisions. Additionally, the Determination requires that the Comcover Special Account be maintained with transparency and accountability, ensuring that all transactions are properly recorded and reported. This includes maintaining detailed records of all credits and debits to the Account, as well as periodic reviews to ensure compliance with the established guidelines. In terms of consequences for non-compliance, the Determination does not explicitly outline specific offences, penalties, or consequences within its text. However, breaches of the Financial Management and Accountability Act 1997, under which this Determination is made, can lead to significant civil or criminal penalties. For instance, section 21 of the Act provides for the imposition of civil penalties for breaches, which can include fines up to $22,200 for individuals and $111,000 for bodies corporate. Additionally, more severe breaches can result in criminal charges, with penalties including fines and imprisonment, depending on the severity of the offence. These provisions underscore the importance of adhering to the regulations set forth in the Determination to avoid potential legal repercussions.