Overview

The Financial Management and Accountability Act 1997, enacted by the Parliament of Australia, was introduced to provide a framework for the financial management and accountability of Commonwealth entities. The Act aims to ensure that public funds are managed efficiently, economically, effectively, and ethically. One of the mechanisms within the Act is the establishment of Special Accounts to set aside and allocate funds for specific purposes. In 2004, a determination was made under section 20 of the Act to vary and abolish the Media Commissions Account. This determination was necessary to amend the purposes of the Media Commissions Account to facilitate the crediting of amounts to a new Media Commissions Special Account, which would be used for processing media commissions through the Central Advertising System. The Media Commissions Special Account was established to address the deficiencies in the existing account, including the capacity to make repayments to contributors and return excess amounts to the budget. The Media Commissions Account was subsequently abolished once the balance reached zero, provided that the variation had taken effect.

Scope and Application

The Financial Management and Accountability Act 1997 applies to the financial management and accountability of the Commonwealth, and this particular determination under the Act pertains to the variation and abolition of a Special Account, specifically the Media Commissions Account. The Act applies to the Executive Government of the Commonwealth and all revenues or moneys raised or received by it, which form the Consolidated Revenue Fund. The Special Account allows certain amounts to be set aside for particular purposes and expended for those purposes, subject to appropriation by the Parliament. The Finance Minister must table a copy of any determination relating to a Special Account in each House of Parliament, and either House may disallow the determination within five sitting days of being tabled. The Media Commissions Account, established under a previous determination, is being varied to allow amounts to be debited from it and credited to a new Media Commissions Special Account, which will be used for processing media commissions through the Central Advertising System. The Media Commissions Account will be abolished once the variation has taken effect and its balance reaches zero. This determination is required to ensure that the Media Commissions Account is abolished only after the necessary variation has occurred and the amount standing to the credit of the Media Commissions Account is credited to the Media Commissions Special Account. The determination extends to the Commonwealth's financial management and accountability, applying to the Executive Government and its revenues. The Act's reach is national, as it applies to the Commonwealth of Australia. There are no stated exclusions, exemptions, or thresholds in this particular determination, but the Act may include such provisions in other contexts. The application of the Act may be extended or restricted through subordinate instruments, such as the establishment of special accounts or variations to existing accounts, as demonstrated by this determination.

Key Provisions

The Financial Management and Accountability Act 1997 (the Act) establishes a framework for the management and accountability of Commonwealth finances, including the creation and management of Special Accounts. Section 20 of the Act allows the Finance Minister to make determinations regarding the variation or abolition of these accounts. In this context, the determination (F2007B00053) primarily varies the Initial Determination to Establish Components of the Reserved Money Fund (section 20(1)) and abolishes the Media Commissions Account (section 20(2)). These changes are subject to specific conditions being met, ensuring that the variation to the account's purposes takes effect before its abolition. This determination imposes obligations on the Finance Minister to ensure that the changes to the Media Commissions Account are implemented correctly. The Minister must cause a copy of the determination to be tabled in each House of Parliament (section 20(3)). The variation of the Media Commissions Account is designed to allow amounts to be debited from the Media Commissions Account and credited to the Media Commissions Special Account, which will be used for activities related to processing media commissions through the Central Advertising System. The abolition of the Media Commissions Account will only occur once the balance of the account reaches zero and the variation has taken effect. These obligations ensure the orderly transition of funds and responsibilities from the Media Commissions Account to the Media Commissions Special Account. Failure to comply with the provisions of the Act, including the requirements set out in this determination, may result in various consequences. However, the explanatory statement does not specify any particular offences, penalties, or consequences for breach under this determination. The Act itself provides a framework for financial management and accountability, and non-compliance could potentially lead to broader administrative or financial repercussions. The determination, being a procedural tool under the Act, serves to guide the specific actions required by the Finance Minister to manage the accounts as intended by the Parliament.