Financial Management and Accountability Determination 2006/52 - Australian Council for Safety and Quality in Health Care Account Variation and Abolition 2006

Administered by Department of Finance

Legislation au F2006L02905 Not in force Legislative Instrument

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EXPLANATORY STATEMENT

Issued by the authority of the Minister for Finance and Administration

Financial Management and Accountability Act 1997

Determination 2006/52 to vary and abolish a Special Account

Purposes of Determination 2006/52

The attached instrument makes a determination under section 20 of the Financial Management and Accountability Act 1997 (FMA Act) to vary and subsequently abolish the Australian Council for Safety and Quality in Health Care 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 be abolished by a determination of the Finance Minister.  However, there is no requirement to table such a determination.

Operation of the Determination 2006/52

Purpose of the Australian Commission on Safety and Quality in Health Care Special Account

A new Special Account, entitled the Safety and Quality in Health Care Special Account (‘the new Account’), is required in order to give effect to changes that are required to the Australian Council for Safety and Quality in Health Care Account, but which are not practical to make by variation to the Australian Council for Safety and Quality in Health Care Account due to the way in which the original determination was structured.

The current purpose of the Australian Council for Safety and Quality in Health Care Account is:

  • for expenditure relating to the administration of the Australian Council for Safety and Quality in Health Care and national programs to improve quality and safety in health care.

Change required

A clause has been inserted to allow amounts to be debited from the Australian Council for Safety and Quality in Health Care Account and credited to the new Account.

Limitations in the structure of the original determination

It is not practical to vary the original determination signed by the delegate of the Minister for Finance and Administration on 4 February 2000, which established the Australian Council for Safety and Quality in Health Care Account.  This is because the format of the determination constrains the amount of information that can be included.  Accordingly, a new Account is being established (Determination 2006/53) to provide for the continuation of the activities of the Australian Council for Safety and Quality in Health Care Account, the incorporation of the necessary changes, and to ensure that the determination is as clear and informative as possible.

Effect of this determination

The Australian Council for Safety and Quality in Health Care Account is being varied by this determination (Determination 2006/52) to enable its balance to be credited to the new Account.  Once the balance of the Australian Council for Safety and Quality in Health Care Account reaches zero, clause 4 of the determination will abolish the Australian Council for Safety and Quality in Health Care Account.

Consultation

The Department of Health and Ageing 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 Australian Council for Safety and Quality in Health Care Account

 

Opening Balance

2006-07

$’000

Credits

 

2006-07

$’000

Debits

 

2006-07 (1)

$’000

Closing Balance

2006-07

$’000

Australian Council for Safety and Quality in Health Care Account

18,127

0

18,127

0

1. Includes balance debited from the Australian Council for Safety and Quality in Health Care Account and credited to the new Account.

 

Overview

The Financial Management and Accountability Act 1997, enacted by the Parliament of Australia, aims to establish a robust framework for the financial management and accountability of Commonwealth funds. This Act, and subsequent determinations such as Determination 2006/52, provide a mechanism for the creation, variation, and abolition of Special Accounts, which are essential for directing funds from the Consolidated Revenue Fund to specific purposes. Determination 2006/52, issued by the Minister for Finance and Administration, addresses a specific gap by varying and abolishing the Australian Council for Safety and Quality in Health Care Account, and establishing a new Safety and Quality in Health Care Special Account to better align with the operational needs and policy objectives of the Australian Commission on Safety and Quality in Health Care. The policy objective is to ensure that the financial management of health care safety and quality initiatives is conducted efficiently and transparently, in accordance with legislative requirements and parliamentary oversight.

Scope and Application

The Financial Management and Accountability Act 1997 Determination 2006/52 pertains to the variation and eventual abolition of the Australian Council for Safety and Quality in Health Care Account, a Special Account within the Consolidated Revenue Fund (CRF) of the Commonwealth. This determination is made under the authority of the Minister for Finance and Administration and is aimed at restructuring the account to better align with the activities and needs of the Australian Commission on Safety and Quality in Health Care. The legislation applies to the Finance Minister and the Department of Health and Ageing, which is the primary agency affected by this instrument. The variation and abolition of the account are necessary to accommodate changes that are not feasible through a simple variation of the original determination due to its structural constraints. Once the balance of the Australian Council for Safety and Quality in Health Care Account is fully debited, clause 4 of the determination will effect the abolition of the account. The new Safety and Quality in Health Care Special Account will continue the purpose of administering the Australian Council for Safety and Quality in Health Care and supporting national programs to improve quality and safety in health care.

Key Provisions

The main operative sections of the Determination 2006/52, under the Financial Management and Accountability Act 1997, pertain to the variation and subsequent abolition of the Australian Council for Safety and Quality in Health Care Account (section 1). This determination is necessitated by the structural constraints of the original account, which prevent the required changes from being implemented through variation alone (section 2). Instead, a new Special Account, the Safety and Quality in Health Care Special Account, is established to ensure the continuation of the activities of the original account while incorporating necessary changes (section 3). The balance of the Australian Council for Safety and Quality in Health Care Account will be transferred to the new Account, and once the balance of the original account reaches zero, it will be abolished (section 4). The Act imposes several obligations and requirements on the parties it governs. Firstly, the Finance Minister must table a copy of any determination establishing or varying a Special Account in each House of Parliament within five sitting days (section 22). Either House can disallow the determination, and if it is not disallowed, it comes into effect on the calendar day after the last day on which it could have been disallowed. The Special Account determinations are exempt from certain subsections of the Legislative Instruments Act 2003, preserving the disallowance provisions (section 22). The determination also requires the affected agency, in this case, the Department of Health and Ageing, to be consulted and to agree with the form of the instrument (section 17). Breach of the requirements set out in the Determination 2006/52 could lead to various civil or criminal consequences, although the specific offences, penalties, or consequences are not explicitly detailed in the Determination itself. Generally, failure to comply with the provisions of the Financial Management and Accountability Act 1997 could result in civil penalties, including fines, or criminal penalties, such as imprisonment, depending on the severity of the breach. However, the maximum penalties for such offences are not specified within the Determination, and would need to be referred to in the FMA Act or relevant case law for precise details.

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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.