EXPLANATORY STATEMENT
Issued by the authority of the Minister for Finance and Administration
Financial Management and Accountability Act 1997
Determination 2006/09 to abolish a Special Account
Purposes of Determination 2006/09
The attached instrument makes a determination under subsection 20(3) of the Financial Management and Accountability Act 1997 (FMA Act) to abolish the Australian and New Zealand Environment Council Fund Account.
Special Accounts generally
In accordance with the Constitution, all revenues or moneys raised or received by the Government of the Commonwealth form one Consolidated Revenue Fund (CRF) and may not be spent unless under 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 amounts from the CRF to be spent on a purpose specified in the determination.
Determinations that establish Special Accounts, or vary determinations that establish Special Accounts, are subject to section 22 of the FMA Act. Section 22 of the FMA Act requires the Finance Minister to table a copy of the establishing or varying determination 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.
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.
Operation of Determination 2006/09
This Determination abolishes the Australian and New Zealand Environment Council Fund Account, with effect from the date of registration on the Federal Register of Legislative Instruments.
Reasons for abolishing the Special Account
The Australian and New Zealand Environment and Conservation Council, which utilised the Special Account, no longer exists and hence the Special Account is no longer required. Consequently, the agency managing the Special Account has requested that it be abolished.
Consultation
The Department of the Environment and Heritage is the agency affected by this instrument. The agency was provided with drafts of the instrument 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).
Overview
The Financial Management and Accountability Act 1997 was enacted by the Parliament of Australia to provide a framework for financial management and accountability within the Commonwealth government. This Act ensures that all revenues and funds of the Commonwealth are managed efficiently and transparently, in line with the financial requirements and objectives of the government. One of the mechanisms introduced under this Act is the establishment of Special Accounts, which are specific funds within the Consolidated Revenue Fund that can be allocated for particular purposes as determined by the Finance Minister. The Financial Management and Accountability (Determination 2006/09) was introduced to abolish the Australian and New Zealand Environment Council Fund Account, a Special Account that had outlived its purpose following the dissolution of the Australian and New Zealand Environment and Conservation Council. The determination was made in accordance with the provisions of the FMA Act, which allows for the abolition of Special Accounts that are no longer necessary, ensuring the continued efficiency and relevance of the Commonwealth's financial management practices.
Scope and Application
The Financial Management and Accountability Act 1997 Determination 2006/09 pertains to the abolition of a Special Account, specifically the Australian and New Zealand Environment Council Fund Account. This Determination is made under subsection 20(3) of the FMA Act and applies to the specified Special Account, which is no longer needed as the Australian and New Zealand Environment and Conservation Council has ceased to exist. The Special Account was established to manage funds according to the specific appropriation outlined in the FMA Act, and its abolition is effective from the date of registration on the Federal Register of Legislative Instruments. The determination to abolish the Special Account is made by the Finance Minister without the necessity of tabling it in Parliament, as there is no such requirement for the abolition of a Special Account. The Department of the Environment and Heritage, which manages the Special Account, was consulted and agrees with the form of the instrument, and no further consultation was deemed necessary as the instrument pertains to internal machinery of government purposes.
Key Provisions
The Determination 2006/09 under the Financial Management and Accountability Act 1997 (FMA Act) specifically targets the abolition of the Australian and New Zealand Environment Council Fund Account (section 20(3)). This Special Account, previously established to manage funds for the Australian and New Zealand Environment and Conservation Council, is being abolished because the council no longer exists (section 20(3)). The abolition comes into effect from the date of registration on the Federal Register of Legislative Instruments.
The obligations under the FMA Act, particularly as they relate to Special Accounts, include the establishment of such accounts through a determination by the Finance Minister, which must be tabled in each House of Parliament and can be disallowed within five sitting days (section 22). In this case, the abolition of the Special Account does not require tabling, but it is still subject to the disallowance provisions under section 22, although these provisions are preserved by Regulation 10 of the Legislative Instruments Regulations 2004.
There are no explicit offences, penalties, or consequences for breaching the provisions of the Determination 2006/09 as it pertains to the abolition of the Special Account. However, the general framework of the FMA Act includes potential civil and criminal penalties for misuse of public funds or failure to comply with financial management regulations. The maximum penalties for such breaches can vary but may include substantial fines and imprisonment, depending on the severity of the offence. The specific penalties would be outlined in other sections of the FMA Act or related legislation.