Overview

The Financial Management and Accountability Act 1997 was enacted to ensure the proper management of Commonwealth finances and to hold the government accountable for its financial decisions. One of the mechanisms introduced by this Act is the establishment of Special Accounts, which allow specific funds to be allocated for particular purposes under the overarching Consolidated Revenue Fund. In 2006, the Australian Government introduced Determination 2006/49 to vary and ultimately abolish the Australian Valuation Office Account, as established under the Act. This determination was made by the Minister for Finance and Administration in response to the need for a new Special Account to accommodate changes required for the Australian Valuation Office Account. The policy objective was to ensure the financial management of the Australian Valuation Office's activities remained efficient and effective, while also complying with legislative requirements and providing clarity in the financial structure.

Scope and Application

The Financial Management and Accountability Act 1997 Determination 2006/49 serves to modify and ultimately abolish the Australian Valuation Office Account, establishing in its place a new Valuation Services Special Account. This determination applies to the Australian Valuation Office Account, which is a part of the Consolidated Revenue Fund, and pertains to the specific purposes for which it was initially established. These purposes include expenditure on services related to the valuation of property and assets and land economic services, as well as payments to the Consolidated Revenue Fund. The scope of the Act extends to the Commonwealth of Australia, with the Minister for Finance and Administration being the authority responsible for making the determination. The process for varying or abolishing Special Accounts is regulated by the Financial Management and Accountability Act 1997, which mandates that any such determination be tabled in each House of Parliament, with the possibility of disallowance within a specific timeframe. This determination is subject to the disallowance provisions outlined in section 22 of the Act, while the disallowance provisions of the Legislative Instruments Act 2003 do not apply. The new Valuation Services Special Account will serve to continue the activities previously undertaken by the Australian Valuation Office Account, incorporating necessary changes to ensure clarity and effectiveness in its operations.

Key Provisions

The primary sections of Determination 2006/49 under the Financial Management and Accountability Act 1997 (FMA Act) involve the variation and subsequent abolition of the Australian Valuation Office Account (section 20). This determination also establishes a new Valuation Services Special Account (section 20). The new account is intended to facilitate changes that cannot be made through a simple variation of the existing account due to the structure of the initial determination. The purpose of the new account includes expenditure on valuation services and related activities, as well as the repayment of capital funds, profit, royalties, interest, seigniorage, and related transfers (section 20). The obligations imposed by the Act require the Finance Minister to table a copy of any establishing or varying determination in each House of Parliament (section 22). 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. The Australian Taxation Office, as the affected agency, was provided with drafts of the instrument and agrees with its form. Given that the instrument is for internal machinery of government purposes, no further consultation was deemed necessary (sections 17 and 18 of the Legislative Instruments Act 2003). The determination outlines specific financial transactions, including the opening balance of the Australian Valuation Office Account, credits, debits, and the closing balance for the 2006-07 period (section 20). The debits include the balance transferred from the Australian Valuation Office Account to the new Valuation Services Special Account. Once the balance of the Australian Valuation Office Account reaches zero, the account will be abolished (section 20). This determination effectively allows for the smooth transition and continuation of activities previously governed by the Australian Valuation Office Account. There are no specific offences or penalties outlined in the Determination 2006/49 itself. However, any failure to comply with the requirements of the FMA Act, such as not tabling the determination or disallowance within the stipulated period, may result in civil or criminal consequences as prescribed under the relevant sections of the FMA Act. The maximum penalties for such breaches would be in accordance with the applicable laws and regulations at the time of the offence.