Overview

The Financial Management and Accountability Act 1997 (FMA Act) was enacted to provide a framework for the financial management and accountability of the Commonwealth. One of the mechanisms introduced by the FMA Act is the establishment of Special Accounts, which allow specific purposes for the expenditure of funds from the Consolidated Revenue Fund. Determination 2006/01, issued under section 20 of the FMA Act by the Minister for Finance and Administration, aimed to vary and ultimately abolish the Royal Australian Mint and Coinage Account. This determination was necessitated by the structural limitations of the initial determination establishing the account, which made it impractical to amend directly. Instead, a new Minting and Coinage Special Account was established to continue the account's activities with the required changes, ensuring clarity and informativeness in the determination. The Royal Australian Mint, as the affected agency, reviewed and agreed with the determination. This legislative action reflects the ongoing need to adapt financial management frameworks to ensure they meet current operational requirements effectively.

Scope and Application

The Determination 2006/01 under the Financial Management and Accountability Act 1997 (FMA Act) pertains to the variation and subsequent abolition of the Royal Australian Mint and Coinage Account. The Act applies to the Commonwealth's financial management framework, specifically addressing the allocation and control of funds within the Consolidated Revenue Fund (CRF). Special Accounts, like the Royal Australian Mint and Coinage Account, are established by a determination that specifies the amounts that may be credited and the purposes for which they may be debited, with these accounts supported by an appropriation under section 20 of the FMA Act. The determination is subject to parliamentary disallowance provisions, as outlined in section 22 of the FMA Act, which mandates the tabling of the determination in each House of Parliament. However, unlike establishing or varying a Special Account, there is no requirement to table a determination to abolish a Special Account. Determination 2006/01 is necessitated by structural limitations in the Initial Determination signed in 1997, which established the Royal Australian Mint and Coinage Account as a component of the Commercial Activities Fund. Due to these limitations, it is not feasible to vary the Initial Determination to accommodate the necessary changes. Consequently, a new Minting and Coinage Special Account is established (determination 2006/02) to continue the activities of the old account while incorporating the required changes and ensuring clarity. The Royal Australian Mint and Coinage Account is varied by this determination to credit its balance to the new account, with clause 4 of the determination abolishing the Royal Australian Mint and Coinage Account once its balance reaches zero. The Royal Australian Mint, the affected agency, has been consulted and agrees with the form of the instrument, and no broader consultation was deemed necessary due to the internal nature of the changes.

Key Provisions

The main operative sections of Determination 2006/01 under the Financial Management and Accountability Act 1997 (FMA Act) establish a new Special Account, the Minting and Coinage Special Account, to replace the existing Royal Australian Mint and Coinage Account. This determination (section 20) varies the existing account and specifies that its balance will be credited to the new account once it reaches zero. This is detailed in clause 4 of the determination, which subsequently abolishes the Royal Australian Mint and Coinage Account. This change is necessitated by the structural limitations of the initial determination from 1997, which prevents the required modifications from being made to the existing account. The obligations and requirements imposed by Determination 2006/01 on the relevant parties include ensuring that the balance of the Royal Australian Mint and Coinage Account is transferred to the new Minting and Coinage Special Account. The Finance Minister must table a copy of the determination in each House of Parliament, as required by section 22 of the FMA Act. This process allows either House of Parliament the opportunity to disallow the determination within five sitting days of tabling. If not disallowed, the determination comes into effect the day after the last possible disallowance date. The Royal Australian Mint, as the agency affected, was provided with drafts of the instrument and has agreed with its form. Determination 2006/01 does not explicitly outline specific offences or penalties for breach. However, any failure to comply with the requirements of the FMA Act, such as not transferring the account balance as specified, could potentially lead to civil or administrative consequences. Given that the determination is for internal machinery of government purposes, no broader consultation was deemed necessary. This is in accordance with sections 17 and 18 of the Legislative Instruments Act 2003. While the determination itself does not specify maximum penalties, breaches of the FMA Act can result in fines or other sanctions as outlined in the relevant legislation.