EXPLANATORY STATEMENT
Issued by the authority of the Minister for Finance and Administration
Financial Management and Accountability Act 1997
Determination 2006/71 to vary and abolish a Special Account
Purposes of Determination 2006/71
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 Australians at War 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 2006/71
Purpose of the Australians at War Account
A new Special Account, entitled the Australians at War Special Account (‘the new Account’), is required in order to give effect to changes that are required to the Australians at War Account, but which are not practical to make by variation to the Australians at War Account due to the way in which the original determination was structured.
The current purposes of the Australians at War Account are:
for the production and promotion of the ‘Australians at War’ documentary and to assist with the costs of manufacture and distribution of educational materials for Australian schools in support of the documentary series, to be administered by the Department of Veterans’ Affairs.
Changes required
A clause has been inserted to allow amounts to be debited from the Australians at War Account and credited to the new Account.
Limitations in the structure of the original determination
It is not practical to vary the determination signed by the Minister for Finance and Administration on 29 August 2000, which established the Australians at War 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 2006/72) to provide for the continuation of the activities of the Australians at War 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 Australians at War Account is being varied by this determination (Determination 2006/72) to enable its balance to be credited to the new Account. Once the balance of the Australians at War Account reaches zero, clause 4 of the determination will abolish the Australians at War Account.
Consultation
The Department of Veterans’ Affairs 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 Australians at War Account
| Opening Balance 2006-07 $’000 | Credits 2006-07 $’000 | Debits 2006-07 (1) $’000 | Closing Balance 2006-07 $’000 |
Australians at War Account | 42 | 0 | 42 | 0 |
1. Balance debited from the Australians at War Account and credited to the new Account.
Overview
The Financial Management and Accountability Act 1997, enacted by the Australian Parliament, serves to ensure the responsible and accountable management of Commonwealth finances. The Act aims to maintain the integrity of financial management within the government and provides a framework for the appropriation and expenditure of public funds. Determination 2006/71 under the Act was introduced to address structural constraints within the existing Australians at War Account, which was established to fund the production and promotion of the 'Australians at War' documentary and related educational materials. The original determination, signed on 29 August 2000, had limitations that made it impractical to modify directly to accommodate necessary changes. Consequently, this determination was enacted to vary and eventually abolish the Australians at War Account, facilitating the creation of a new Special Account with a clearer structure and more explicit terms, ensuring the continuation of the intended activities while addressing the limitations of the original framework.
Scope and Application
The Financial Management and Accountability Act 1997 Determination 2006/71 pertains to the variation and subsequent abolition of the Australians at War Account. The Act applies to the Commonwealth Government, specifically to the Minister for Finance and Administration, who is responsible for making the determination under section 20 of the FMA Act. The Act affects the Australians at War Account, which is a Special Account established to fund the production and promotion of the ‘Australians at War’ documentary and educational materials for Australian schools. The Act is a Commonwealth instrument and applies nationally across Australia. The Act does not explicitly state exclusions, exemptions, or thresholds but implies that the provisions apply to the specified account and its operations. The Act’s application may be extended or restricted through subordinate instruments, as it relies on the Minister’s authority to make determinations regarding Special Accounts. The Department of Veterans’ Affairs, which administers the account, was consulted and agrees with the form of the instrument.
Key Provisions
The Financial Management and Accountability Act 1997 (FMA Act) encompasses the establishment and management of Special Accounts, which are a specified subset of the Consolidated Revenue Fund (CRF). These accounts are established through a determination under section 20 of the FMA Act, which outlines the amounts that can be credited to and debited from these accounts. The Australians at War Account, previously established under this framework, is now subject to a variation and subsequent abolition through Determination 2006/71. This determination introduces a new Special Account, referred to as the Australians at War Special Account, to address specific changes that were impractical to implement through a variation of the original account.
Determination 2006/71 mandates that the balance of the Australians at War Account be credited to the new Special Account. This process involves a structured transition whereby the original account's balance will be transferred to the new account. Once this balance is exhausted, clause 4 of the determination will effect the abolition of the Australians at War Account. The new account will encompass the original purposes of the previous account, which include the production and promotion of the 'Australians at War' documentary, as well as the costs associated with the manufacture and distribution of educational materials for Australian schools.
The obligations under this determination are primarily administrative and require the Department of Veterans’ Affairs, the affected agency, to manage the transition of funds and activities from the old account to the new one. The determination specifies that the Department must ensure all financial activities are appropriately documented and that the new account operates within the parameters set out by the FMA Act. The Department of Veterans’ Affairs was consulted and has concurred with the form and content of this determination.
In terms of compliance and enforcement, Determination 2006/71 is subject to parliamentary oversight. As per section 22 of the FMA Act, the Finance Minister must table a copy of the establishing or varying determination in each House of Parliament. Any disallowance of the determination must occur within five sitting days of tabling, and if not disallowed, the determination takes effect on the calendar day after the last day on which it could have been disallowed. There are no specific offences, penalties, or civil/criminal consequences outlined for breaches of this determination; however, any non-compliance with the FMA Act in general could lead to administrative or legal repercussions. The disallowance process itself serves as a primary mechanism for ensuring adherence to legislative requirements.