Financial Management and Accountability Determination 2005/24 - Recovery of Compensation for Health Care and Other Services Special Account Establishment 2005

Administered by Department of Finance

Legislation au F2005L02599 Not in force Legislative Instrument

Legislation content

Financial Management and Accountability Determination 2005/24—Recovery of Compensation for Health Care and Other Services Special Account Establishment 2005

This determination was originally made under subsection 20(1) of the Financial Management and Accountability Act 1997 and from 1 July 2014 is taken to have been made under subsection 78(1) of the Public Governance, Performance and Accountability Act 2013 (see Schedule 2, Part 2, item 36 of the Public Governance, Performance and Accountability (Consequential and Transitional Provisions) Act 2014). 

Compilation No. 1

Compilation date:    16 September 2015

Includes amendments up to: F2015L01321

Registered:    16 September 2015

 

 

 

 

 

About this compilation

This compilation

This is a compilation of the Financial Management and Accountability Determination 2005/24—Recovery of Compensation for Health Care and Other Services Special Account Establishment 2005 that shows the text of the law as amended and in force on 16 September 2015 (the compilation date).

This compilation was prepared on 15 September 2015.

The notes at the end of this compilation (the endnotes) include information about amending laws and the amendment history of provisions of the compiled law.

Uncommenced amendments

The effect of uncommenced amendments is not shown in the text of the compiled law. Any uncommenced amendments affecting the law are accessible on ComLaw (www.comlaw.gov.au). The details of amendments made up to, but not commenced at, the compilation date are underlined in the endnotes. For more information on any uncommenced amendments, see the series page on ComLaw for the compiled law.

Application, saving and transitional provisions for provisions and amendments

If the operation of a provision or amendment of the compiled law is affected by an application, saving or transitional provision that is not included in this compilation, details are included in the endnotes.

Modifications

If the compiled law is modified by another law, the compiled law operates as modified but the modification does not amend the text of the law. Accordingly, this compilation does not show the text of the compiled law as modified. For more information on any modifications, see the series page on ComLaw for the compiled law.

Self-repealing provisions

If a provision of the compiled law has been repealed in accordance with a provision of the law, details are included in the endnotes.

 

 

 

Contents

1 Name of Determination

2 Commencement

3 Establishment

4 Amounts to be credited

5 Purposes

6 Definitions

Endnotes

Endnote 1—About the endnotes

Endnote 2—Abbreviation key

Endnote 3—Legislation history

Endnote 4—Amendment history

 

1  Name of Determination

  This Determination is the Financial Management and Accountability Determination 2005/24—Recovery of Compensation for Health Care and Other Services Special Account Establishment 2005.

2  Commencement

  This Determination commences on 1 October 2005.

Note: This Determination takes effect in accordance with section 22 of the FMA Act. The Parliament must consider the Determination before it can take effect, and either House may pass a resolution disallowing the Determination. If neither House passes such a resolution, the Determination takes effect on the day immediately after the last day upon which such a resolution could have been passed.

3  Establishment

  A Special Account is established with the name Recovery of Compensation for Health Care and Other Services Special Account for the purposes of subsection 20(1) of the FMA Act.

4  Amounts to be credited

  Amounts received by the Agency following a judgement or settlement under the Health And Other Services (Compensation) Act 1995 may be credited to the Recovery of Compensation for Health Care and Other Services Special Account.

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 recredited 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 a 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 (the Goods and Services Tax is defined as the GST in section 1951 of the A New Tax System (Goods and Services Tax) Act 1999).

5  Purposes

  The purposes of the Recovery of Compensation for Health Care and Other Services Special Account, in relation to which amounts may be debited, are:

 (a) to pay the claimant, or the claimant's authorised representative, amounts credited to the Special Account; and

 (b) to reduce the balance of the Special Account (and, therefore, the available appropriation for the Special Account) without making a real or notional payment; and

 (c) to repay amounts where an Act or other law requires or permits the repayment of an amount received; and

 (d) to credit amounts to the Recovery of Compensation for Health Care and Other Services Special Account 2015.

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 Special 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 Special Account.

Note 2: In addition to the purposes specified in this Determination, other provisions of the FMA Act provide authority for amounts to be debited from this Special Account.

 Subsection 39(1) of the FMA Act provides the Finance Minister with the power to invest public money in any authorised investment. 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.

 Not all chief executives have been delegated powers to invest under section 39 of the FMA Act.

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 the 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.

Note 5: The purpose set out above, ‘to reduce the balance of the Special Account (and, therefore, the available appropriation for the Special Account) without making a real or notional payment’, is solely for extinguishing all or part of the appropriation under section 20 of the FMA Act for the purposes of this Special Account. When this Special Account is debited for this purpose, there is no payment or credit available to another party, account or appropriation.

6  Definitions

  In this Determination:

Agency means the entity administering the Special Account.

FMA Act means the Financial Management and Accountability Act 1997.

Note: Agency is defined in section 5 of the FMA Act to mean a Department of State, a Department of the Parliament, or a prescribed agency.

Endnotes

Endnote 1—About the endnotes

The endnotes provide information about this compilation and the compiled law.

The following endnotes are included in every compilation:

Endnote 1—About the endnotes

Endnote 2—Abbreviation key

Endnote 3—Legislation history

Endnote 4—Amendment history

Endnotes about misdescribed amendments and other matters are included in a compilation only as necessary.

Abbreviation key—Endnote 2

The abbreviation key sets out abbreviations that may be used in the endnotes.

Legislation history and amendment history—Endnotes 3 and 4

Amending laws are annotated in the legislation history and amendment history.

The legislation history in endnote 3 provides information about each law that has amended (or will amend) the compiled law. The information includes commencement details for amending laws and details of any application, saving or transitional provisions that are not included in this compilation.

The amendment history in endnote 4 provides information about amendments at the provision (generally section or equivalent) level. It also includes information about any provision of the compiled law that has been repealed in accordance with a provision of the law.

Misdescribed amendments

A misdescribed amendment is an amendment that does not accurately describe the amendment to be made. If, despite the misdescription, the amendment can be given effect as intended, the amendment is incorporated into the compiled law and the abbreviation “(md)” added to the details of the amendment included in the amendment history.

If a misdescribed amendment cannot be given effect as intended, the abbreviation “(md not incorp)” is added to the details of the amendment included in the amendment history.

Endnote 2—Abbreviation key

 

A = Act

o = order(s)

ad = added or inserted

Ord = Ordinance

am = amended

orig = original

amdt = amendment

par = paragraph(s)/subparagraph(s)

c = clause(s)

    /subsubparagraph(s)

C[x] = Compilation No. x

pres = present

Ch = Chapter(s)

prev = previous

def = definition(s)

(prev…) = previously

Dict = Dictionary

Pt = Part(s)

disallowed = disallowed by Parliament

r = regulation(s)/rule(s)

Div = Division(s)

Reg = Regulation/Regulations

exp = expires/expired or ceases/ceased to have

reloc = relocated

    effect

renum = renumbered

F = Federal Register of Legislative Instruments

rep = repealed

gaz = gazette

rs = repealed and substituted

LI = Legislative Instrument

s = section(s)/subsection(s)

LIA = Legislative Instruments Act 2003

Sch = Schedule(s)

(md) = misdescribed amendment can be given

Sdiv = Subdivision(s)

    effect

SLI = Select Legislative Instrument

(md not incorp) = misdescribed amendment

SR = Statutory Rules

    cannot be given effect

SubCh = SubChapter(s)

mod = modified/modification

SubPt = Subpart(s)

No. = Number(s)

underlining = whole or part not

 

    commenced or to be commenced

 

Endnote 3—Legislation history

 

Name

FRLI registration

Commencement

Application, saving and transitional provisions

Financial Management and Accountability Determination 2005/24—Recovery of Compensation for Health Care and Other Services Special Account Establishment 2005

12 Sept 2005 (F2005L02599)

1 Oct 2005 (s 2)

 

PGPA Act (Recovery of Compensation for Health Care and Other Services Special Account 2015–Establishment) Determination 2015/06

26 Aug 2015 (F2015L01321)

Pt 2: 16 Sept 2015 (s 2)

 

Endnote 4—Amendment history

 

Provision affected

How affected

s 5.....................

am F2015L01321

 

 

Overview

The Financial Management and Accountability Determination 2005/24—Recovery of Compensation for Health Care and Other Services Special Account Establishment 2005, enacted in 2005, addresses the need for a dedicated account to manage compensation payouts for healthcare and other services. The establishment of this special account under the Financial Management and Accountability Act 1997 ensures that funds received from judgments or settlements are appropriately allocated and managed. The policy objective behind this determination is to streamline the process of crediting, managing, and disbursing compensation funds, ensuring they are used efficiently and in accordance with legal requirements. The determination was initially made under the Financial Management and Accountability Act 1997 and was later transitioned under the Public Governance, Performance and Accountability Act 2013. The enacting body for this determination was the Parliament, which ensures the proper oversight and legislative compliance of the account's operations.

Scope and Application

The Financial Management and Accountability Determination 2005/24—Recovery of Compensation for Health Care and Other Services Special Account Establishment 2005 establishes a Special Account within the framework of the Financial Management and Accountability Act 1997, now operating under the Public Governance, Performance and Accountability Act 2013. The account, named the Recovery of Compensation for Health Care and Other Services Special Account, is designed to manage funds received from judgements or settlements under the Health And Other Services (Compensation) Act 1995. These funds are to be credited to the account, and the account's purposes include paying claimants or their representatives, reducing the account balance without making payments, repaying amounts as required by law, and crediting amounts to the account itself. The account's establishment and management are subject to various provisions of the FMA Act, including those that allow for the investment of public money, the debiting of accounts for incorrect credits or fundamental mistakes, and the treatment of notional payments. The account applies nationally as a Commonwealth instrument, and its operations are governed by both the FMA Act and subordinate legislation that may extend or modify its application.

Key Provisions

The Financial Management and Accountability Determination 2005/24—Recovery of Compensation for Health Care and Other Services Special Account Establishment 2005 establishes a Special Account named the Recovery of Compensation for Health Care and Other Services Special Account (section 3). This Special Account is intended to manage funds received following a judgement or settlement under the Health And Other Services (Compensation) Act 1995. These funds can be credited to the Special Account, as outlined in section 4. The primary purposes of the Special Account, as detailed in section 5, include paying claimants or their authorised representatives, reducing the balance of the account without making a payment, repaying amounts as required by law, and crediting additional amounts to the account. The Act imposes several obligations on the entities governed by it. The establishment of the Special Account and the crediting of funds to it are governed by the terms and conditions set forth in the Act. Additionally, the Act mandates that any amounts received must be credited to the Special Account unless there is a clerical error or a fundamental mistake of fact or law, in which case they may be debited from the account (section 5). The Act also requires that any investment made from the account must be managed in accordance with the provisions of the Financial Management and Accountability Act 1997, ensuring that the proceeds of such investments are credited back to the Special Account (sections 3 and 39). Breaches of the obligations and requirements set forth in the Act can lead to civil or criminal consequences. Although specific offences and penalties are not detailed in the provided text, the Act likely includes provisions for enforcement under the Financial Management and Accountability Act 1997 or the Public Governance, Performance and Accountability Act 2013. Violations could result in penalties that align with the severity of the breach, potentially including fines or other sanctions. Given the nature of financial management and accountability legislation, penalties for non-compliance could be substantial, reflecting the importance of adhering to these financial governance standards.

Legal classification tags

Area of Law
Financial Management & Accountability
Instrument
Legislative Instrument
Concepts
Commencement Provisions
Reporting & Disclosure Obligations
Offence Provisions

Interactions

Authorises

All Versions

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.