Financial Management and Accountability Determination 2005/37 - Consular Services Account Variation and Abolition 2005

Administered by Department of Finance

Legislation au F2005L02965 Not in force Legislative Instrument

Legislation content

EXPLANATORY STATEMENT

Issued by the authority of the Minister for Finance and Administration

Financial Management and Accountability Act 1997

Determination 2005/37 to vary and abolish a Special Account

Purposes of Determination 2005/37

The attached instrument makes a determination under section 20 of the Financial Management and Accountability Act 1997 (FMA Act) to vary and subsequently abolish the Consular Services Account.

Special Accounts generally

In accordance with the Constitution, all revenues or moneys raised or received by the Executive Government of the Commonwealth form one Consolidated Revenue Fund (CRF) and may not be used unless in accordance with an appropriation by the Parliament for the purposes of the Commonwealth.  A Special Account is established by a determination that sets out the amounts that may be credited and the purposes for which it may be debited.  Special Accounts established by determination are supported by an appropriation under section 20 of the FMA Act.  In effect, Special Accounts allow specified amounts from the CRF to be expended for a particular specified purpose.

A Special Account determination can be varied by a subsequent determination by the Finance Minister.

The Finance Minister must table a copy of a determination relating to a Special Account in each House of Parliament.  Either House may disallow a determination within five sitting days of tabling.  If the determination is not disallowed, it comes into effect on the calendar day after the last day on which it could have been disallowed.  Regulation 10 of the Legislative Instruments Regulations 2004 preserves the disallowance provisions under section 22 of the FMA Act by exempting Special Account determinations from subsections 57(2) and 57(5) of the Legislative Instruments Act 2003.

The notes to determinations identify legislation and other laws that allow or require amounts to be credited to, or debited from, the Special Account.

Special Accounts can also be abolished by a determination of the Finance Minister.  However, there is no requirement to table the determination to abolish a Special Account and, therefore, it has immediate effect.

Operation of the Determination 2005/37

Purpose of the Consular Services Account

A new Special Account, entitled Consular Services Special Account (‘the new Account’) is required in order to give effect to changes that are required to the Consular Services Account, but which it is not practical to make by variation to the Consular Services Account due to the way in which the Original Determination was structured.

The current purposes of the Consular Services Account is:

For expenditure on behalf of Australian citizens overseas in circumstances of urgency where recourse to the international banking system is inappropriate.

Changes required

The changes required to the Consular Services Account are set out below:

  • the inclusion of permanent residents as persons eligible to receive consular assistance facilitated through this account, in order to provide an avenue for family in Australia to provide financial assistance to Australian permanent residents travelling abroad in emergency circumstances or when commercial money transfer services are unavailable or inappropriate; and
  • the addition of an expenditure purpose that allows residual balances to be returned to the original payee.

As part of a programme to enhance the clarity of Special Account determinations and to remove any areas of doubt over the scope of the purposes of Special Accounts, the following changes are being incorporated within the determinations of all Special Accounts, where appropriate, and where the need for other variations arise:

  • a provision to debit amounts relating to incidental activities.  This allows administration costs, including such items as auditing, reporting, budgeting, accounting and information technology services incurred in the course of operating the Special Account, to be debited from the Special Account.  The existing purpose clause would often allow the debiting of the Special Account for these costs, depending on the degree of directness of connection of the costs with other purposes of the Special Account.  The inclusion of the new incidental clause removes the need to obtain legal advice on the degree of directness of connection for individual transactions;
  • a capacity to return excess amounts to the Budget (that is, reduce the balance of the Special Account without a real or notional payment).  This provision does not allow amounts to be transferred to another Special Account, or to be allocated for any other purpose, that is not consistent with the purposes of the Special Account;
  • a clause to allow for amounts to be repaid when another Act or law allows it.  This has always been permitted by section 28 of the FMA Act, but is now included in determinations to simplify accounting for these transactions; and
  • notes that identify general credits and debits that can be made to Special Accounts, for information purposes, in reliance on other laws.

Limitations in the structure of the Original Determination

It is not practical to vary the Original Determination signed by the delegate of the Minister for Finance on 31 December 1997 (establishing a Consular Services Reserve as a component of the Reserved Money Fund).  This is because the format of the determination constrains the amount of information that can be included.  In addition, the Original Determination was not made in a reader-friendly format, suitable for inclusion on the Federal Register of Legislative Instruments.  Accordingly, a new Account is being established (determination 2005/38) to provide for the continuation of the activities of the Consular Services Account, the incorporation of the necessary changes, and to ensure that the determination is as clear and informative as possible.

Effect of this determination

The Consular Services Account, is being varied by this determination (determination 2005/37) to enable its balance to be credited to the new Account.  Once the balance of the Consular Services Account reaches zero, clause 3 of the determination will abolish the Consular Services Account.

Consultation

The Department of Foreign Affairs and Trade is the agency affected by this instrument. The agency was provided with drafts of the instrument before it was finalised and agrees with the form of the instrument. As the instrument is for internal machinery of government purposes only, no consultation was considered necessary with other persons (see sections 17 and 18 of the Legislative Instruments Act 2003).

Estimates of transactions on the Consular Services Account

 

Opening Balance

2005-06

$’000

Credits

 

2005-06

$’000

Debits

 

2005-06(1)

$’000

Closing Balance

2005-06

$’000

Consular Services Account

0

100

100

0

1. Balance debited from the Consular Services Account and credited to the new Account.

 

Overview

The Financial Management and Accountability Act 1997 (FMA Act) was enacted to ensure that the financial management and accountability of the Commonwealth are conducted in a manner that is transparent, efficient, and effective. Determination 2005/37, issued under section 20 of the FMA Act by the Minister for Finance and Administration, aims to vary and subsequently abolish the Consular Services Account. The primary objective of this determination is to address the limitations in the structure of the original determination and to incorporate necessary changes to enhance the clarity and effectiveness of the account. The changes include extending eligibility for consular assistance to permanent residents and allowing for the return of residual balances to the original payee. The determination also introduces provisions to debit incidental activities and repay amounts when permitted by other laws, thereby simplifying the accounting process. This new account, the Consular Services Special Account, ensures that the activities of the Consular Services Account continue with the required modifications and improved clarity. The determination was made in accordance with the legislative process outlined in the FMA Act, which mandates the tabling of such determinations in each House of Parliament, with the option for disallowance within five sitting days. The Department of Foreign Affairs and Trade, the agency affected by this instrument, provided its agreement to the form of the instrument. Given that the instrument pertains to internal government machinery, no further consultation was deemed necessary. The Consular Services Account will be credited to the new Consular Services Special Account until it reaches a zero balance, at which point the original account will be abolished.

Scope and Application

The Financial Management and Accountability Act 1997 Determination 2005/37 applies to the modification and eventual abolition of the Consular Services Account, which was established under the Act to manage specific expenditures related to Australian citizens and, now, permanent residents in urgent situations overseas. This legislation applies to the Commonwealth Executive Government, specifically within the Department of Foreign Affairs and Trade, which is the agency managing the account. The changes, which include expanding eligibility for assistance to permanent residents and allowing the return of residual balances to the original payee, are intended to enhance the clarity and efficiency of the Special Account's operations. The determination also incorporates broader changes applicable to all Special Accounts, such as the ability to debit incidental activities and repay amounts when permitted by other laws, while ensuring these accounts remain within their intended purposes. The determination follows the legislative process outlined in the Act, including tabling in Parliament, with the option for disallowance within a specified period. Once the balance of the Consular Services Account is exhausted, the account will be abolished, and all remaining funds will be transferred to the newly established Consular Services Special Account.

Key Provisions

The primary operative sections of Determination 2005/37 under the Financial Management and Accountability Act 1997 (section 20) involve the variation and subsequent abolition of the Consular Services Account. This determination establishes a new Consular Services Special Account (section 1) to replace the existing Consular Services Account, with the purpose of providing financial assistance to Australian citizens and permanent residents overseas in urgent situations where conventional banking systems are not viable (section 2). The new account will also allow for the return of residual balances to the original payee (section 3). The determination imposes specific obligations on the parties governed by it. These include the eligibility of Australian permanent residents for consular assistance, the addition of a new purpose for residual balances, and the inclusion of incidental administrative costs such as auditing and reporting (section 4). It also mandates the capacity to return excess amounts to the budget and allows for the repayment of amounts when permitted by another Act or law (section 4). The new account will operate in a manner that ensures clarity and compliance with legislative requirements (section 5). There are no explicit offences, penalties, or civil/criminal consequences detailed in the determination itself for breaches of the provisions. However, any breaches of the Financial Management and Accountability Act 1997 or related laws could potentially result in penalties under those respective statutes. The determination focuses primarily on administrative adjustments and the clear structuring of financial activities related to the Consular Services Special Account. The determination itself does not specify maximum penalties but indicates that the affected parties should adhere to the broader legal framework governing financial management and accountability in Australia.

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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.