EXPLANATORY STATEMENT
Issued by the authority of the Minister for Finance and Administration
Financial Management and Accountability Act 1997
Determination 2006/67 to vary and abolish a Special Account
Purposes of Determination 2006/67
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 Building Codes Board 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 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.
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 2006/67
Purpose of the Australian Building Codes Board Account
A new Special Account, entitled the Australian Building Codes Board Special Account (‘the new Account’) is required in order to give effect to changes that are required to the Australian Building Codes Board Account, but which are not practical to make by variation to the Australian Building Codes Board Account due to the way in which the Initial Determination was structured.
The current purposes of the Australian Building Codes Board Account are:
- for the purpose of the expenditure for research, investigation and development (including the engagement of consultants) and the dissemination of information directed towards the achievement and maintenance of uniform building regulations;
- development of a national system of accreditation; and
- development of comparable legislative control procedures in the building approval process among the States and Territories.
Changes required
A clause has been inserted to allow amounts to be debited from the Australian Building Codes Board Account and credited to the new Account.
Limitations in the structure of the Initial Determination
It is not practical to vary the Initial Determination signed by the delegate of the Minister for Finance and Administration on 31 December 1997 (establishing an Australian Uniform Building Regulations 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 2006/68) to provide for the continuation of the activities of the Australian Building Codes Board 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 Building Codes Board Account is being varied by this determination (Determination 2006/67) to enable its balance to be credited to the new Account. Once the balance of the Australian Building Codes Board Account reaches zero, clause 4 of the determination will abolish the Australian Building Codes Board Account.
Consultation
The Department of Industry, Tourism and Resources 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 Building Codes Board Account
| Opening Balance 2006-07 $’000 | Credits 2006-07 $’000 | Debits 2006-07 (1) $’000 | Closing Balance 2006-07 $’000 |
Australian Building Codes Board Account | 831 | 0 | 831 | 0 |
1. Includes balance debited from the Australian Building Codes Board Account and credited to the new Account.
Overview
The Financial Management and Accountability Act 1997 (FMA Act) was enacted by the Parliament of Australia to establish a robust framework for the financial management and accountability of Commonwealth entities. One of the mechanisms introduced by the FMA Act is the establishment of Special Accounts through determinations by the Minister for Finance and Administration, to ensure funds are used for specific purposes as appropriated by Parliament. Determination 2006/67, issued under the authority of the Minister for Finance and Administration, seeks to address a specific issue with the Australian Building Codes Board Account by varying and subsequently abolishing it. This determination was necessary due to structural limitations in the initial determination that made it impractical to vary the account directly. Instead, a new account, the Australian Building Codes Board Special Account, has been established to facilitate the continuation of the board's activities with clearer and more informative provisions. The purpose of this determination is to allow the balance of the existing account to be transferred to the new account, ensuring a smooth transition while maintaining the integrity and purpose of the original account.
Scope and Application
The Financial Management and Accountability Act 1997 Determination 2006/67 is an instrument issued by the Minister for Finance and Administration to vary and abolish the Australian Building Codes Board Account. This determination applies to the Australian Building Codes Board Account, which was established to manage specific funds for research, investigation, development, and the dissemination of information related to uniform building regulations, a national accreditation system, and legislative control procedures in building approvals among states and territories. The determination affects the Department of Industry, Tourism and Resources as the primary agency involved. Geographically, this Act operates within the Commonwealth of Australia and is subject to the provisions outlined in the Financial Management and Accountability Act 1997. The determination itself is subject to disallowance by either House of Parliament within five sitting days of tabling, as required by section 22 of the FMA Act. The act allows for the abolition of the Account without the need for tabling the determination, provided there are no objections from the relevant parliamentary houses. The instrument also indicates that no consultation was deemed necessary beyond the Department of Industry, Tourism and Resources, given its internal governmental focus.
Key Provisions
Determination 2006/67 under the Financial Management and Accountability Act 1997 (FMA Act) is a legislative instrument that varies and abolishes the Australian Building Codes Board Account, establishing a new account to replace it. Section 20 of the FMA Act allows for the creation and variation of Special Accounts, which are specific accounts within the Consolidated Revenue Fund (CRF) that permit the allocation and spending of funds for specified purposes. Determination 2006/67 introduces the Australian Building Codes Board Special Account, which is intended to continue the functions of the previous account while incorporating necessary changes that could not be achieved through a simple variation of the original determination. The purposes of the new account include supporting research, investigation, and development for uniform building regulations, as well as the development of a national system of accreditation and comparable legislative control procedures among the states and territories.
The obligations imposed by this determination include the requirement that the balance of the Australian Building Codes Board Account be credited to the new account, as outlined in clause 4 of the determination. This process ensures a smooth transition of activities and financial responsibilities from the old account to the new one. Additionally, the Finance Minister is obligated to table the determination in each House of Parliament, allowing for scrutiny and potential disallowance within five sitting days as stipulated in section 22 of the FMA Act. However, unlike establishing or varying a Special Account, there is no requirement to table a determination for the abolition of a Special Account.
Failure to comply with the provisions of this determination could result in legal consequences, although specific offences, penalties, or civil/criminal consequences are not explicitly detailed in the text. Generally, breaches of the FMA Act could lead to penalties under the relevant sections of the Act, which could include fines or other sanctions as determined by the court. The precise penalties would depend on the nature and severity of the breach, as well as any applicable provisions in other legislation. The overarching goal of the determination is to ensure that the financial management of the Australian Building Codes Board is conducted in a transparent and accountable manner, maintaining the integrity of the Consolidated Revenue Fund and its appropriations.