Financial Management and Accountability Determination 2006/78 — Australian Protective Service Account Variation and Abolition 2006

Administered by Department of Finance

Legislation au F2006L03722 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 2006/78 to vary and abolish a Special Account

Purposes of Determination 2006/78

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 Protective Service 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 2006/78

Purpose of the Australian Protective Service Account

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

The current purposes of the Australian Protective Service Account are:

 

  1. For expenditure relating to:

(a)   the provision of protective, guarding security and related services by the APS to the Commonwealth or to a Commonwealth body or to a company over which the Commonwealth or a Commonwealth body is able to exercise control, inside or outside Australia, and matters relating thereto;

(b)   the provision of services referred to in (a) above to any other person or persons, inside or outside Australia, and matters relating thereto; and

(c)   reimbursement of any payments made on behalf of the APS up to            31 December 1992 out of moneys standing to the credit of the DAS Business Services Trust Account.

2. Notional payments of moneys to the Official Public Account.

Change required

A clause has been inserted to allow amounts to be debited from the Australian Protective Service 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 Protective Service 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 2006/79) to provide for the continuation of the activities of the old 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 Protective Service Account is being varied by this determination (Determination 2006/78) to enable its balance to be credited to the new Account.  Once the balance of the Australian Protective Service Account reaches zero, clause 4 of the determination will abolish the Australian Protective Service Account.

Consultation

The Australian Federal Police 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 Protective Service Account

 

Opening Balance

2006-07

$’000

Credits

 

2006-07

$’000

Debits

 

2006-07 (1)

$’000

Closing Balance

2006-07

$’000

Australian Protective Service Account

2,558

0

2,558

0

1. Includes balance debited from the Australian Protective Service Account and credited to the new Account.

Overview

The Financial Management and Accountability Act 1997 was enacted by the Parliament of Australia to provide a framework for the financial management of Commonwealth entities, ensuring accountability and transparency in the use of public funds. The Act, as varied by Determination 2006/78, addresses the need to revise and abolish the Australian Protective Service Account. This determination was issued by the Minister for Finance and Administration, aiming to streamline the account's operations and purposes. The policy objective behind this determination is to facilitate a more efficient and effective financial management system by establishing a new Protective Services Special Account, thereby ensuring that the account structure is clear, informative, and better suited to the current requirements of the Australian Protective Service.

Scope and Application

The Financial Management and Accountability Act 1997 Determination 2006/78 varies and subsequently abolishes the Australian Protective Service Account, establishing a new Special Account to replace it. This Act applies to the Australian Federal Police as the agency responsible for the activities previously covered by the Australian Protective Service Account. The determination establishes the new Protective Services Special Account to facilitate necessary changes that cannot be made via variation due to the initial determination's structure. This Act operates under the Commonwealth jurisdiction, with the Minister for Finance and Administration having the authority to make the determination, which must be tabled in each House of Parliament. The new Account will allow for expenditures related to protective, guarding, and security services provided by the Australian Public Service to the Commonwealth or Commonwealth bodies, as well as to other persons within or outside Australia. There are no stated exclusions or exemptions in this Act; however, it does not require disallowance by Parliament to come into effect. The Act’s application is limited to the financial management of the specified activities, ensuring that all expenditures are appropriately appropriated and accounted for under the Consolidated Revenue Fund.

Key Provisions

The main operative sections of Determination 2006/78 under the Financial Management and Accountability Act 1997 (FMA Act) concern the establishment and subsequent abolition of the Australian Protective Service Account. The determination sets out the specific purposes for which the account can be credited and debited (section 20). It mandates the transfer of the account's balance to a newly established Protective Services Special Account, and specifies the conditions under which this transfer occurs (clause 4). Once the Australian Protective Service Account's balance reaches zero, clause 4 will effect its abolition. The Act imposes several obligations on the parties involved. The Finance Minister must ensure that any determination establishing or varying a Special Account is tabled in each House of Parliament (section 22). The Australian Federal Police, as the agency affected by this instrument, must cooperate with the changes outlined in the determination. Furthermore, the determination must comply with the disallowance provisions, which allow either House of Parliament to disallow the determination within five sitting days of tabling (section 22). If no disallowance occurs, the determination comes into effect on the calendar day after the last day on which it could have been disallowed. In terms of offences, penalties, or consequences for breach, the Act does not explicitly detail criminal or civil penalties for non-compliance with the determination. However, the disallowance mechanism serves as a significant deterrent, as failure to properly table or allow the disallowance of the determination could result in the continued operation of the original Australian Protective Service Account without the necessary amendments. The maximum penalties, if any, would be dictated by broader legislative frameworks and common law principles governing administrative actions and financial management.

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Administrative Law
Financial Management & Accountability
Instrument
Determination
Concepts
Definitions & Interpretation
Repeal & Amendment
Transitional Provisions
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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.