Overview

The Financial Management and Accountability Act 1997 was enacted to provide a framework for the financial management and accountability of the Commonwealth Government. The Act was introduced to address the need for clear and effective financial management systems and practices within the government. Determination 2006/75 to vary and abolish the Industry Related Systems Development Account was made under the authority of the Minister for Finance and Administration and in accordance with section 20 of the FMA Act. The purpose of this determination was to address structural limitations in the initial determination that established the Industry Related Systems Development Account, making it impractical to vary the account as required. The policy objective was to establish a new Special Account that would allow for the continuation of necessary activities while incorporating required changes in a clear and informative manner. This was achieved by crediting the balance of the old Account to a new Account and subsequently abolishing the old Account once its balance reached zero.

Scope and Application

The Financial Management and Accountability Act 1997 Determination 2006/75, issued under the authority of the Minister for Finance and Administration, pertains to the variation and eventual abolition of the Industry Related Systems Development Account. This Act applies specifically to the Australian Customs Service, governing its financial management practices. The geographical scope of the Act is limited to the Commonwealth, aligning with the constitutional framework where all revenues are directed into the Consolidated Revenue Fund. Special Accounts, like the Industry Related Systems Development Account, are established by determination and are supported by appropriation under the Act. The Act ensures that any determination establishing or varying a Special Account must be tabled in each House of Parliament, where it can be disallowed within five sitting days, unless it proceeds into effect thereafter. The Act does not require disallowance provisions for the abolition of Special Accounts. The Act extends its application through subordinate instruments, ensuring that the disallowance process for establishing or varying Special Accounts is preserved.

Key Provisions

The Financial Management and Accountability Act 1997 (FMA Act) governs the management and accountability of financial resources of the Commonwealth of Australia. Determination 2006/75, issued under section 20 of the FMA Act, is a variation and abolition of the Industry Related Systems Development Account (section 20). This determination is designed to establish a new Industry Related Systems Development Special Account, which will allow for the continuation of activities related to the industry development of Australian Customs Service systems, with necessary changes that were not feasible under the existing structure. The existing Industry Related Systems Development Account will be credited to the new Account, and once the balance of the old Account reaches zero, the old Account will be abolished (clause 4 of the determination). Under this determination, the obligations and requirements are primarily for the Australian Customs Service, which is the agency directly affected. The Finance Minister must table a copy of the determining instrument in each House of Parliament (section 22 of the FMA Act). The Australian Customs Service must ensure that the new Account is established in accordance with the determination and that all transactions comply with the prescribed purposes. Additionally, the Service is required to provide necessary information and ensure that the new Account is managed in accordance with the determination, allowing for the specified activities to continue smoothly. There are no specific offences, penalties, or consequences outlined within this determination for breaching its provisions. However, the FMA Act generally provides that unauthorised expenditure or use of public moneys can lead to civil or criminal penalties. For example, section 38 of the FMA Act stipulates that any person who knowingly makes an unauthorised payment from public moneys can be subject to penalties, including fines and imprisonment. Therefore, while this particular determination does not explicitly state penalties for non-compliance, the broader legislative framework ensures that breaches can lead to significant consequences. Overall, Determination 2006/75 is a procedural instrument that ensures the continuity of essential financial operations related to the industry development of Australian Customs Service systems. By establishing a new Special Account, the determination addresses structural limitations that prevented necessary changes to the existing Industry Related Systems Development Account. This ensures that the activities supported by the Account can continue without interruption, while also complying with the legislative requirements for financial management and accountability within the Commonwealth.