EXPLANATORY STATEMENT
Issued by the authority of the Minister for Finance and Administration
Financial Management and Accountability Act 1997
Determination 2006/77 to abolish a Special Account
Purposes of Determination 2006/77
The attached instrument makes a determination under subsection 20(3) of the Financial Management and Accountability Act 1997 (FMA Act) to abolish the Australian Customs Service - Tradegate Fees 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 the determination to abolish a Special Account.
Operation of Determination 2006/77
This Determination abolishes the Australian Customs Service - Tradegate Fees Account, with effect from the date of registration on the Federal Register of Legislative Instruments.
Reasons for abolishing the Special Account
The Australian Customs Service – Tradegate Fees Account is no longer required as it was established to manage amounts associated with a contract between Tradegate and Australian Customs Service and the contract expired in February 2006. Consequently, the agency managing the Special Account has requested that it be abolished.
Consultation
The 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).
Overview
The Financial Management and Accountability Act 1997, enacted by the Parliament of Australia, establishes the framework for financial management within the Commonwealth government. One of the key features of this Act is the creation of Special Accounts, which allow for the segregation of funds within the Consolidated Revenue Fund for specific purposes as determined by the Minister for Finance. The Act was introduced to address the need for improved financial management and accountability within the government, ensuring that funds are appropriately allocated and utilised. Determination 2006/77, issued under the authority of the Minister for Finance and Administration, serves to abolish the Australian Customs Service - Tradegate Fees Account, which was established to manage fees associated with a contract that expired in February 2006. As the account is no longer required, and following consultation with the Australian Customs Service, the determination was made to abolish the account, reflecting the government's commitment to maintaining efficient and relevant financial mechanisms.
Scope and Application
The Financial Management and Accountability Act 1997 (FMA Act) Determination 2006/77 pertains to the abolition of a specific Special Account, namely the Australian Customs Service - Tradegate Fees Account, which was established to manage funds associated with a contract between Tradegate and the Australian Customs Service. This determination is issued under the authority of the Minister for Finance and Administration and is applicable to the Finance Minister who has the power to establish or abolish such Special Accounts. The abolition of this account reflects its redundancy following the expiration of the related contract in February 2006. The Special Account, established by a determination under section 20 of the FMA Act, was supported by an appropriation from the Consolidated Revenue Fund (CRF) and was subject to parliamentary disallowance provisions outlined in section 22 of the FMA Act. However, the abolition of the account does not require tabling in Parliament. The regulation takes effect from the date of its registration on the Federal Register of Legislative Instruments. The Australian Customs Service, being the agency affected by this determination, has been consulted and agrees with the content of the instrument, and no further consultation was deemed necessary due to the internal nature of the changes.
Key Provisions
The Determination 2006/77 under the Financial Management and Accountability Act 1997 (FMA Act) (section 20(3)) provides for the abolition of the Australian Customs Service - Tradegate Fees Account. This decision aligns with the cessation of the related contract between Tradegate and the Australian Customs Service, which expired in February 2006, making the Special Account unnecessary (section 20(3)). Special Accounts, such as the Tradegate Fees Account, are established through a determination that specifies the amounts to be credited and the purposes for which they can be debited, supported by an appropriation under section 20 of the FMA Act. These accounts allow for specified spending from the Consolidated Revenue Fund (CRF) on purposes outlined in the determination.
The obligations under this Act require the Finance Minister to table a copy of any determination establishing or varying a Special Account in each House of Parliament, subject to potential disallowance by either House within five sitting days (section 22). Determinations to abolish a Special Account do not need to be tabled, as per the legislative framework. The Australian Customs Service, being the agency affected, has been consulted and agrees with the form of this instrument. As the determination pertains to internal government machinery, broader consultation was deemed unnecessary (sections 17 and 18 of the Legislative Instruments Act 2003).
Breaches of the provisions under the FMA Act may lead to various civil and criminal consequences. While the specific offences, penalties, and maximum penalties are not detailed in the Determination 2006/77, general provisions under the FMA Act may include financial penalties or legal actions for misuse of funds, unauthorised expenditures, or failure to comply with financial management regulations. These penalties can vary based on the severity and intent of the breach, with potential maximum penalties depending on the specific violation of the Act. The overarching aim of the legislation is to ensure financial accountability and adherence to parliamentary appropriations.