Financial Management and Accountability Determination 2006/12 – Other Trust Moneys – Future Fund Management Agency Special Account Establishment 2006

Administered by Department of Finance

Legislation au F2006L01734 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 2006/12 to establish a Special Account

Purposes of Determination 2006/12

The attached instrument makes a determination under subsection 20 (1) of the Financial Management and Accountability Act 1997 (FMA Act) to establish a Special Account entitled Other Trust Moneys – Future Fund Management Agency Special Account.  It also specifies the nature of amounts that may be credited to, and the purposes for which amounts may be debited from, the Other Trust Moneys – Future Fund Management Agency Special 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 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 Special Account.

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.

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

Operation of the Determination 2006/12

Purpose of the Other Trust Moneys – Future Fund Management Agency Special Account

The determination is required in order to establish a Special Account, to enable the Future Fund Management Agency to temporarily hold amounts on behalf of persons or entities other than the Commonwealth.

Other Trust Moneys Special Accounts provide agencies with an ability to hold amounts on behalf of others and the appropriation to expend these amounts.  Typically Other Trust Moneys Special Accounts are used to accommodate small amounts of miscellaneous moneys.  For example, the Other Trust Moneys Special Account may be used to provide an appropriation to allow moneys found by Commonwealth officials to be paid to their rightful owner once the owner has been identified.  It may also be used to hold amounts received from Comcare in relation to employees entitled to receive workers’ compensation payments.

At the commencement of the FMA Act on 1 January 1998 a determination of the Finance Minister created Other Trust Moneys Special Accounts for all agencies that existed at that time.  The Future Fund Management Agency was created on
3 April 2006 and has identified amounts that will be required to hold in an Other Trust Moneys Special Account.

Should the Future Fund Management Agency change its name, due to a change in legislation or for some other reason, it is intended that the Special Account be retained by the successor agency.  This will enable the amounts in the Special Account at that time to remain with the relevant agency.

Clause 5 specifies the purposes for which a Special Account can be debited.

  • Paragraph 5(a) describes the primary purpose for expenditure of amounts from the Special Account.
  • Paragraph 5(b) allows the Special Account to be debited, in a manner that would otherwise be permitted by section 28 of the FMA Act. It is included to simplify accounting for these transactions.

Consultation

The Future Fund Management Agency 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).

Estimates of transactions on the Other Trust Moneys – Future Fund Management Agency Special Account

 

Opening Balance

2006-07

2005-06

$’000

Credits

 

2006-07

2005-06

$’000

Debits

 

2006-07

2005-06

$’000

Closing Balance

2006-07

2005-06

$’000

Other Trust Moneys – Future Fund Management Agency Special Account

*

*

*

*

*

*

*

*

* The receipt and expense of miscellaneous moneys is expected to be small and is not able to be estimated at this time.

Overview

The Financial Management and Accountability Act 1997 was enacted to establish a robust framework for the financial management and accountability of the Commonwealth, ensuring that public funds are managed efficiently and transparently. To address the need for the Future Fund Management Agency to temporarily hold funds on behalf of persons or entities other than the Commonwealth, the Financial Management and Accountability Act 1997 Determination 2006/12 was issued. This determination was made under the authority of the Minister for Finance and Administration to establish a Special Account called the Other Trust Moneys – Future Fund Management Agency Special Account. The primary purpose of this determination is to provide a mechanism for the agency to temporarily hold and manage funds on behalf of others, facilitating the proper administration of miscellaneous moneys and ensuring these funds are returned to their rightful owners. This approach ensures compliance with constitutional requirements by allowing specified expenditures from the Consolidated Revenue Fund for clearly defined purposes.

Scope and Application

The Determination 2006/12 under the Financial Management and Accountability Act 1997 (FMA Act) establishes a Special Account titled Other Trust Moneys – Future Fund Management Agency Special Account, providing the Future Fund Management Agency with the authority to temporarily hold funds on behalf of persons or entities other than the Commonwealth. This Special Account allows the agency to manage miscellaneous funds and small amounts, such as moneys found by Commonwealth officials or amounts received from Comcare for workers’ compensation payments. The establishment of this account ensures that the agency can hold and manage these funds appropriately while being supported by a specific appropriation under the FMA Act. This account is intended to remain with the agency even if it undergoes a name change, ensuring continuity in fund management. The Determination specifies the purposes for which the Special Account can be debited, primarily to facilitate the holding of miscellaneous funds, and allows for the account to be debited in ways permitted by the FMA Act to simplify accounting processes. The determination is subject to disallowance by either House of Parliament within five sitting days of being tabled, following which it comes into effect if not disallowed.

Key Provisions

The Financial Management and Accountability Act 1997 (FMA Act) outlines a framework for the management of public funds, including the establishment of Special Accounts (sections 20 and 22). Determination 2006/12 establishes the Other Trust Moneys – Future Fund Management Agency Special Account, detailing the types of transactions it can facilitate. This account is designed for the Future Fund Management Agency to temporarily hold funds on behalf of entities other than the Commonwealth and to disburse these funds for specific purposes (Clause 5). The account allows for credits to be made when the agency receives funds on behalf of others and for debits when these funds are disbursed in accordance with the terms of the account (section 20(1)). The obligations imposed on the Future Fund Management Agency by this determination include maintaining accurate records of all transactions within the Special Account and ensuring that all debits and credits are for purposes specified in the determination (section 28). The agency must also comply with any additional legislative requirements that may apply to the specific transactions within the account. This includes ensuring that all funds are managed in accordance with the Financial Management and Accountability Act 1997, and any other relevant legislation that may pertain to the types of transactions occurring within the account (Clause 5). Breaches of the obligations set out in the FMA Act can result in civil or criminal penalties, depending on the nature and severity of the breach. For instance, section 45 of the FMA Act provides for penalties for fraudulent or negligent conduct in relation to public moneys. The penalties for such offences can include fines and imprisonment, with the exact penalties varying depending on the circumstances of the breach. Additionally, section 22 of the FMA Act allows for the disallowance of a determination by either House of Parliament if the determination is considered to be in breach of the Act or any other relevant legislation. This process can lead to the nullification of the determination, thereby affecting the operation of the Special Account established under it (section 22).

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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.