Financial Management and Accountability Determination 2006/73 - Australian Customs Service – Security Deposits Account Variation and Abolition 2006

Administered by Department of Finance

Legislation au F2006L03715 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 2006/73 to vary and abolish a Special Account

Purposes of Determination 2006/73

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 Customs Service – Security Deposits 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 2006/73

Purpose of the Security Deposits Account

A new Special Account, entitled Security Deposits Special Account (‘the new Account’) is required in order to give effect to changes that are required to the Australian Customs Service – Security Deposits Account, but which are not practical to make by variation to the Australian Customs Service – Security Deposits Account due to the way in which the Initial Determination was structured.


The current purpose of the Australian Customs Service – Security Deposits Account is:

For expenditure dealing with moneys required to be lodged under Sections 42 and 162 of the Customs Act 1901.

Changes required

A clause has been inserted to allow amounts to be debited from the Australian Customs Service – Security Deposits 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 Customs Service – Security Deposits 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 2006/74) to provide for the continuation of the activities of the Australian Customs Service – Security Deposits 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 Customs Service – Security Deposits Account, is being varied by this determination (Determination 2006/73) to enable its balance to be credited to the new Account.  Once the balance of the Australian Customs Service – Security Deposits Account reaches zero, clause 4 of the determination will abolish the Australian Customs Service – Security Deposits Account.

Consultation

The Australian Customs Service – Australian Customs Service 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 Customs Service – Security Deposits Account

 

Opening Balance

2005-06

$’000

Credits

 

2005-06

$’000

Debits

 

2005-06 (1)

$’000

Closing Balance

2005-06

$’000

Australian Customs Service – Security Deposits Account

6,316

0

6,316

0

1. Includes balance debited from the Australian Customs Service – Security Deposits Account and credited to the new Account.

 

Overview

The Financial Management and Accountability Act 1997 Determination 2006/73 was enacted to address the need to revise and eventually abolish the Australian Customs Service – Security Deposits Account due to structural limitations in the initial determination from 1997. This determination was issued by the Minister for Finance and Administration under the authority of the Financial Management and Accountability Act 1997. The primary objective of this determination is to establish a new Security Deposits Special Account to facilitate the necessary changes and ensure clarity and effectiveness in the account's operation. The original account, established to handle moneys required to be lodged under Sections 42 and 162 of the Customs Act 1901, was found to be impractical to vary due to its structural constraints. Consequently, the new account will allow for the continuation of the original account’s activities with the required modifications, ensuring the account operates efficiently and transparently.

Scope and Application

The Financial Management and Accountability Act 1997 Determination 2006/73 pertains to the variation and subsequent abolition of the Australian Customs Service – Security Deposits Account, which is a Special Account within the Commonwealth's Consolidated Revenue Fund. This account is established under the Act and is governed by specific appropriations and determinations. The Special Account was initially set up to handle the moneys required to be lodged under Sections 42 and 162 of the Customs Act 1901. The current determination facilitates the transfer of the existing account's balance to a newly established Security Deposits Special Account to incorporate necessary changes and ensure clarity. The Finance Minister, under the authority of the FMA Act, has the power to establish, vary, or abolish such accounts, with variations subject to disallowance by either House of Parliament within five sitting days of tabling. This determination is specific to the Australian Customs Service and does not require broader consultation due to its internal nature. The transition involves crediting the existing account's balance to the new account until the former's balance reaches zero, at which point it will be abolished.

Key Provisions

The main operative sections of the Determination 2006/73 involve the variation and subsequent abolition of the Australian Customs Service – Security Deposits Account, as well as the establishment of a new Security Deposits Special Account (section 2). The determination specifies the conditions under which amounts may be debited from the original account and credited to the new account (section 3). Once the balance of the Australian Customs Service – Security Deposits Account reaches zero, the account is abolished (section 4). This process ensures that the changes required to the account's operations are effectively implemented. The obligations imposed by the Act on the parties or entities it governs include the requirement for the Finance Minister to table a copy of the determination in each House of Parliament (section 22 of the Financial Management and Accountability Act 1997). Additionally, the Australian Customs Service, as the agency affected by this instrument, has been provided with drafts of the instrument and agrees with its form. The agency has been consulted and has given its approval, and no further consultation with other persons was considered necessary due to the internal nature of the changes (sections 17 and 18 of the Legislative Instruments Act 2003). The consequences of breaching the provisions of the Act are not explicitly detailed in the Explanatory Statement, but under the general provisions of the Financial Management and Accountability Act 1997, breaches could lead to various civil or criminal penalties depending on the nature and severity of the breach. The Act allows for the imposition of fines and even imprisonment in cases of significant non-compliance or fraudulent activity. The specific maximum penalties would be determined by the relevant courts based on the particular circumstances of each case. However, the determination itself does not specify particular penalties for breaches of its provisions.

Legal classification tags

Area of Law
Financial Management & Accountability
Instrument
Determination
Concepts
Definitions & Interpretation
Repeal & Amendment
Transitional Provisions
Enforcement Powers
Reporting & Disclosure Obligations

Interactions

Authorises

All Versions

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.