Financial Management and Accountability Determination 2006/54 - Strategic Intergovernmental Nutrition Alliance Account Variation and Abolition 2006

Administered by Department of Finance

Legislation au F2006L02907 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 2006/54 to vary and abolish a Special Account

Purposes of Determination 2006/54

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 Strategic Intergovernmental Nutrition Alliance Account.  This instrument varies Determination 1998/8 which established the Strategic Intergovernmental Nutrition Alliance Account (formerly ‘Reserve’) as a component of the Reserved Money Fund. 

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 2006/54

Purpose of the Strategic Intergovernmental Nutrition Alliance Special Account

A new Special Account, entitled the Intergovernmental Nutrition Special Account (‘the new Account’), is required in order to give effect to changes that are required to the Strategic Intergovernmental Nutrition Alliance Account, but which are not practical to make by variation to the Strategic Intergovernmental Nutrition Alliance Account due to the way in which the original determination was structured.

The current purpose of the Strategic Intergovernmental Nutrition Alliance Account is:

  • for expenditure relating to the operations of the Secretariat to the Strategic Intergovernmental Nutrition Alliance.

Change required

A clause has been inserted to allow amounts to be debited from the Strategic Intergovernmental Nutrition Alliance 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 9 November 1998 (establishing a Strategic Intergovernmental Nutrition Alliance Reserve as a component of the Reserved Money Fund).  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 2006/55) to provide for the continuation of the activities of the Strategic Intergovernmental Nutrition Alliance 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 Strategic Intergovernmental Nutrition Alliance Account is being varied by this determination (Determination 2006/54) to enable its balance to be credited to the new Account.  Once the balance of the Strategic Intergovernmental Nutrition Alliance Account reaches zero, clause 4 of the determination will abolish the Strategic Intergovernmental Nutrition Alliance 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 Strategic Intergovernmental Nutrition Alliance Account

 

Opening Balance

2006-07

$’000

Credits

 

2006-07

$’000

Debits

 

2006-07 (1)

$’000

Closing Balance

2006-07

$’000

Strategic Intergovernmental Nutrition Alliance Account

0

0

0

0

1. Includes balance debited from the Strategic Intergovernmental Nutrition Alliance Account and credited to the new Account.

 

Overview

The Financial Management and Accountability Act 1997 (FMA Act) was enacted to provide a framework for the financial management and accountability of Commonwealth entities, ensuring that all revenues and expenditures are in accordance with law and parliamentary appropriation. The Act allows for the establishment of Special Accounts by determination under section 20, subject to parliamentary disallowance procedures outlined in section 22. Determination 2006/54, issued under the authority of the Minister for Finance and Administration, was introduced to address the practical limitations in varying the existing Strategic Intergovernmental Nutrition Alliance Account, necessitating its abolition and replacement with a new Intergovernmental Nutrition Special Account. This change was deemed necessary to better align with the current purpose of funding the operations of the Secretariat to the Strategic Intergovernmental Nutrition Alliance. The new Account aims to ensure clarity and facilitate the continuation of activities previously managed by the abolished Account. The determination was agreed upon by the Department of Health and Ageing, with no further consultation considered necessary due to its internal focus.

Scope and Application

The Financial Management and Accountability Act 1997 (FMA Act) Determination 2006/54 pertains to the variation and subsequent abolition of the Strategic Intergovernmental Nutrition Alliance Account, previously established as a component of the Reserved Money Fund by Determination 1998/8. This determination applies to the Strategic Intergovernmental Nutrition Alliance Account and is a mechanism for ensuring that funds within the Consolidated Revenue Fund are only expended as authorised by Parliament through an appropriation. Special Accounts, such as the one in question, allow specific purposes to be funded from the Consolidated Revenue Fund in accordance with the terms outlined in the determination. The Minister for Finance and Administration has the authority to establish or vary Special Accounts through a determination under section 20 of the FMA Act, with such determinations subject to disallowance by either House of Parliament. This particular determination has been crafted to address structural limitations in the original determination, necessitating the establishment of a new Intergovernmental Nutrition Special Account to continue the activities of the Strategic Intergovernmental Nutrition Alliance Account with the required changes. The determination has been agreed upon by the Department of Health and Ageing, with no external consultation deemed necessary due to the internal nature of the changes.

Key Provisions

The main operative sections of Determination 2006/54 (section 20 of the Financial Management and Accountability Act 1997) establish a new Special Account, the Intergovernmental Nutrition Special Account, to replace the existing Strategic Intergovernmental Nutrition Alliance Account. This determination allows the balance of the Strategic Intergovernmental Nutrition Alliance Account to be debited and credited to the new Account. Once the balance of the Strategic Intergovernmental Nutrition Alliance Account reaches zero, the determination will abolish the existing Account. The Act imposes several obligations on the parties involved, primarily the Minister for Finance and Administration. Under section 22 of the FMA Act, the Minister must table a copy of the establishing or varying determination in each House of Parliament. If the determination is not disallowed within five sitting days, it comes into effect on the calendar day after the last day on which it could have been disallowed. Additionally, the Department of Health and Ageing, the agency affected by this instrument, must be provided with drafts of the instrument and agrees with the form of the instrument. There are no specified offences, penalties, or consequences for breach under this determination. However, if the determination is disallowed by either House of Parliament within the stipulated period, it will not come into effect, thereby preserving the existing structure of the Strategic Intergovernmental Nutrition Alliance Account. In such a scenario, the Minister would need to reconsider the measures to vary or abolish the Account, potentially revisiting the process or seeking alternative means to achieve the desired changes.

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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.