Overview

The Financial Management and Accountability Act 1997, enacted by the Parliament of Australia, aims to ensure effective and accountable financial management within the Commonwealth government. This Act establishes the framework for the creation and management of Special Accounts, which are subsets of the Consolidated Revenue Fund used for specific purposes as authorised by appropriation. Determination 2006/33, issued under section 20 of the FMA Act, addresses the need to vary and ultimately abolish the Australian Government Actuary Account. The original Account was established to manage funds related to the operations of the Australian Government Actuary. However, structural constraints in the original determination made it impractical to incorporate necessary changes directly. Consequently, a new Actuarial Services Special Account is created to continue the activities of the old Account with enhanced clarity and functionality. This determination facilitates the transfer of the existing balance to the new Account and its eventual abolition once the balance is exhausted. The policy objective is to ensure that financial management practices are transparent, efficient, and aligned with contemporary needs.

Scope and Application

The Financial Management and Accountability Act 1997 Determination 2006/33 pertains to the variation and subsequent abolition of the Australian Government Actuary Account, establishing instead a new Actuarial Services Special Account. This determination applies to the Finance Minister who is responsible for establishing or varying Special Accounts under the Act, which are financial instruments that allow specific expenditures from the Consolidated Revenue Fund. The Actuarial Services Special Account replaces the Australian Government Actuary Account due to structural limitations in the original determination, ensuring the continuation and clarity of financial transactions related to actuarial services for the Commonwealth Government. This determination, once operational, will transfer the existing balance from the Australian Government Actuary Account to the new Special Account, ultimately leading to the abolition of the former once its balance reaches zero. The geographic scope of this determination is national, as it pertains to the Commonwealth Government’s financial management. There are no stated exclusions or thresholds in this determination, but it is subject to disallowance by either House of Parliament if tabled within the prescribed period.

Key Provisions

The main operative sections of the Determination 2006/33 under the Financial Management and Accountability Act 1997 (FMA Act) include the establishment of the Actuarial Services Special Account and the process for varying and abolishing the Australian Government Actuary Account. Specifically, section 20 of the FMA Act empowers the Minister to establish or vary Special Accounts, and this determination operates under that provision. The determination outlines the new Actuarial Services Special Account to replace the Australian Government Actuary Account (section 20). It also details the procedure for transferring the balance from the existing account to the new one and eventually abolishing the old account once its balance reaches zero (section 4). The Act imposes several obligations and requirements on the parties involved. The Finance Minister must table a copy of any determination establishing or varying a Special Account in each House of Parliament, as mandated by section 22 of the FMA Act. Additionally, the Department of the Treasury, being the affected agency, has been provided with drafts of the instrument and has concurred with its form. The determination also requires that any disallowance of the determination must occur within five sitting days of tabling, or it will come into effect as per the provisions of section 22 of the FMA Act. Failure to comply with the provisions of the determination could lead to various consequences. Under the Legislative Instruments Act 2003, the disallowance process outlined in section 22 of the FMA Act remains in effect, preserving the disallowance provisions. While the Act does not specify a particular penalty for non-compliance with the determination, general provisions under the FMA Act could apply, including fines and other civil or criminal penalties for improper financial management. However, the specific penalties would depend on the nature and severity of the breach.