Financial Management and Accountability Determination 2004/07 - Federal Court of Australia Litigants’ Fund Special Account Establishment 2004

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Legislation au F2006B11535 Not in force Legislative Instrument

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Financial Management and Accountability (Determination 2004/07 — Federal Court of Australia Litigants’ Fund Special Account) Establishment 2004

I, NICK MINCHIN, Minister for Finance and Administration, make this Determination under subsection 20 (1) of the Financial Management and Accountability Act 1997.

Dated 9 June 2004

Nick Minchin

Minister for Finance and Administration

1 Name of Determination

  This Determination is the Financial Management and Accountability (Determination 2004/07 — Federal Court of Australia Litigants’ Fund Special Account) Establishment 2004.

Note   This Determination takes effect in accordance with section 22 of the Financial Management and Accountability Act 1997. The Parliament must consider the Determination before it can take effect.

2 Definitions

  In this Determination:

FMA Act means the Financial Management and Accountability Act 1997.

3 Establishment of the Federal Court of Australia Litigants’ Fund Special Account

  For subsection 20 (1) of the FMA Act, a Special Account is established with the name Federal Court of Australia Litigants’ Fund Special Account.

4 Amounts to be credited to the Federal Court of Australia Litigants’ Fund Special Account

  The following amounts may be credited to the Federal Court of Australia Litigants’ Fund Special Account:

 (a) all amounts received by the Federal Court of Australia from proceedings;

 (b) all amounts received in respect of a proceeding that has been transferred from another court to the Federal Court of Australia.

Note 1   The Appropriation Acts provide that if any of the purposes of a Special Account are covered by an item in those Acts (whether or not the item expressly refers to the Special Account), then amounts may be debited against the appropriation for that item and credited to the Special Account.

Note 2   Subsection 39 (5) of the FMA Act provides that upon realisation of an investment of an amount debited from a Special Account, the proceeds of the investment must be credited to that Special Account.

Note 3   Section 30 of the FMA Act has the effect that if an amount expended from a Special Account is repaid to the Commonwealth, that amount must be re-credited to that Special Account.

Note 4   Section 30A of the FMA Act has the effect of increasing the appropriation under section 20 of the FMA Act for the purposes of this Special Account (and thereby increasing this Special Account’s balance). The increase is of an amount equivalent to any GST amount that is recoverable in relation to a payment, and occurs immediately before the payment is made.

5 Purposes of the Federal Court of Australia Litigants’ Fund Special Account

  The purposes of the Federal Court of Australia Litigants’ Fund Special Account, in relation to which amounts may be debited from the Special Account, are:

 (a) in accordance with:

 (i) an order of the Federal Court of Australia or a Judge of that Court under Order 63 rule 4 of the Federal Court Rules; or

 (ii) a direction of a Registrar under that Order; and

 (b) in any other case in accordance with an order of the Federal Court of Australia or a Judge of that Court.              

Note 1   Subsection 20 (4) of the FMA Act appropriates the Consolidated Revenue Fund (CRF) for expenditure for the purposes of the Special Account up to the balance for the time being of the Account.  Subsection 20 (5) of the FMA Act provides that whenever an amount is debited against the appropriation, the amount is taken to be also debited from the Account.

Note 2   In addition to the purposes specified in this determination, other legislation provides authority for amounts to be debited from this Special Account:

(a) Section 28 of the FMA Act provides that, where a repayment of an amount received by the Commonwealth and credited to a Special Account is supported by the appropriation in subsection 28 (2) of the FMA Act (that is a law requires or permits the repayment and there is no other appropriation for the repayment), the amount of the repayment must be debited from the Special Account.

(b) Subsection 39 (1) of the FMA Act provides the Finance Minister with the power to invest public money in any authorised investment. Not all chief executives have been delegated powers to invest under section 39 of the FMA Act. Where such an investment is made of an amount standing to the credit of a special account, section 39 of the FMA Act has the effect that the Special Account must be debited. Subsection 39 (4) of the FMA Act provides that if an amount has been invested by debiting a Special Account, then the expenses of the investment may be debited from the Account. Subsection 39 (9) of the FMA Act appropriates the CRF for this investment activity.

Note 3   An amount may be debited from a Special Account where:

(a) it has been incorrectly credited by virtue of a clerical mistake; or

(b) it has been credited through the exercise of a discretion by an official and the exercise of that discretion was actuated by a fundamental mistake of fact or law.

Legal advice should be obtained before an amount is debited on this basis of paragraph (b).

Note 4   Section 6 of the FMA Act applies to a notional payment by an Agency (or part of an Agency) as if it were a real payment by the Commonwealth. Notional receipts and notional payments are transactions between different parts of the Commonwealth.  Real receipts and real payments are transactions between the Commonwealth and other entities.

 

 

Overview

The Financial Management and Accountability (Determination 2004/07 — Federal Court of Australia Litigants’ Fund Special Account) Establishment 2004 was enacted to establish a dedicated account for the management of funds received by the Federal Court of Australia from litigation proceedings. This legislative instrument was made by Nick Minchin, the Minister for Finance and Administration, under subsection 20(1) of the Financial Management and Accountability Act 1997. The primary purpose of this Determination is to ensure that funds collected from litigation proceedings are appropriately managed and used for the purposes outlined in the Determination, such as orders or directions from the Federal Court or its judges. This measure helps to maintain transparency and accountability in the handling of litigation funds within the Federal Court of Australia.

Scope and Application

The Financial Management and Accountability (Determination 2004/07 — Federal Court of Australia Litigants’ Fund Special Account) Establishment 2004 applies to the establishment and management of a special account within the Commonwealth of Australia. This legislation, enacted under the Financial Management and Accountability Act 1997, specifically pertains to the Federal Court of Australia Litigants’ Fund Special Account. The account is established to hold funds received by the Federal Court from proceedings, including those transferred from other courts. The purpose of the account is to facilitate the proper management and accountability of these funds, ensuring they are appropriately allocated in accordance with court orders or directions. The account is governed by the provisions of the Financial Management and Accountability Act 1997, which outlines the processes for crediting and debiting the account, as well as the permissible uses of the funds held within it. The account's operations are subject to the jurisdictional reach of the Commonwealth, and any subordinate instruments or amendments to the legislation may further refine the account's application and administration.

Key Provisions

The Financial Management and Accountability (Determination 2004/07 — Federal Court of Australia Litigants’ Fund Special Account) Establishment 2004 (the Determination) establishes the Federal Court of Australia Litigants’ Fund Special Account under the Financial Management and Accountability Act 1997 (the FMA Act) (sections 3, 4). The Special Account is intended to hold funds received by the Federal Court of Australia from proceedings and amounts transferred from other courts (section 4(a) and (b)). The Determination outlines the purposes for which amounts may be debited from the Special Account, such as in accordance with an order of the Federal Court or a direction of a Registrar, or in any other case in accordance with an order of the Federal Court (section 5). It also notes that other legislation provides authority for amounts to be debited from the Account, including repayments and authorised investments (section 5, Note 2 and 3). Under the Determination, the Federal Court of Australia Litigants’ Fund Special Account must be credited with specified amounts, and the purposes for which amounts may be debited from the Account are clearly defined (section 4 and 5). The Account is subject to the FMA Act, which outlines the obligations and requirements for the parties or entities it governs. These include ensuring that amounts are credited to the Account as required and that amounts are debited from the Account for specified purposes only (sections 3-5). Additionally, the Appropriation Acts provide that if any of the purposes of a Special Account are covered by an item in those Acts, then amounts may be debited against the appropriation for that item and credited to the Special Account (section 4, Note 1). Subsection 39(5) of the FMA Act requires that upon realisation of an investment of an amount debited from a Special Account, the proceeds of the investment must be credited to that Special Account (section 4, Note 2). If an amount expended from a Special Account is repaid to the Commonwealth, that amount must be re-credited to that Special Account (section 4, Note 3). The increase in the appropriation under section 20 of the FMA Act for the purposes of this Special Account is equivalent to any GST amount that is recoverable in relation to a payment (section 4, Note 4). The Determination does not explicitly outline specific offences, penalties, or civil/criminal consequences for breach. However, the FMA Act provides for potential consequences for breaches of its provisions. For example, subsection 20(4) of the FMA Act appropriates the Consolidated Revenue Fund (CRF) for expenditure for the purposes of the Special Account up to the balance for the time being of the Account. Whenever an amount is debited against the appropriation, the amount is taken to be also debited from the Account (subsection 20(5) of the FMA Act). Additionally, an amount may be debited from a Special Account where it has been incorrectly credited by virtue of a clerical mistake or where it has been credited through the exercise of a discretion by an official and the exercise of that discretion was actuated by a fundamental mistake of fact or law (section 5, Note 3 and 4). Legal advice should be obtained before an amount is debited on this basis of paragraph (b).

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.