Financial Management and Accountability Determination 2008/12 - Australian Fisheries Management Authority Services for Other Entities and Trust Moneys Special Account Establishment 2008

Administered by Department of Finance

Legislation au F2008L02081 Not in force Legislative Instrument

Legislation content

EXPLANATORY STATEMENT

 

Issued by the authority of the Minister for Finance and Deregulation

Financial Management and Accountability Act 1997

Determination 2008/12 to establish a Special Account

Purposes of Determination 2008/12

The attached instrument makes a Determination under subsection 20 (1) of the Financial Management and Accountability Act 1997 (FMA Act) to establish a Special Account entitled Australian Fisheries Management Authority Services for Other Entities and Trust Moneys Special Account (AFMA SOETM Special Account).  It also specifies the nature of amounts that may be credited to, and the purposes for which amounts may be debited from, the AFMA SOETM Special 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 Special Account.

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. The Determination may prescribe a later date upon which the Special Account can be relied upon.

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.

The notes to the Determination identify legislation and other laws that allow or require amounts to be credited to, or debited from, the Special Account.

Operation of the Determination 2008/12

Purpose of the Australian Fisheries Management Authority Services for Other Entities and Trust Moneys Special Account

Most Agencies under the FMA Act administer either a SOETM Special Account or other Special Accounts that together encompass the purposes of a SOETM Special Account.

The AFMA SOETM Special Account will enable the Australian Fisheries Management Authority (AFMA) to hold and expend amounts on behalf of persons or entities other than the Commonwealth. AFMA will become a prescribed Agency subject to the FMA Act from 1 July 2008 and has identified amounts that will be required to be held in a SOETM Special Account.

Typically the SOETM Special Account will be used to accommodate small amounts of miscellaneous moneys. For example, the SOETM Special Account may be used to hold amounts (a) received in connection with services performed for or on behalf of any persons or entities that are not Agencies as prescribed under the FMA Act, such as other governments; and (b) received from Comcare in relation to employees entitled to receive workers’ compensation payments.

Within the Determination that establishes the AFMA SOETM Special Account, Clause 5 specifies the purposes for which the Special Account can be debited.

  • Subclauses 5 (a) and (b) describe the primary purposes for expenditure of amounts from the Special Account.
  • Subclause 5 (c) allows the Special Account to the debited, in a manner that would otherwise be permitted by section 28 of the FMA Act. It is included to simplify accounting for these transactions.
  • Subclause 5 (d) allows the balance of the Special Account to be reduced by amounts that are not Special Public Money (as defined under section 16 of the Financial Management and Accountability Act). It covers amounts (i) that are not Special Public Money at the time they are credited to the special account; and (ii) that, due to some change in circumstances under which they are held, no longer have the status of Special Public Money.  It is included to ensure that these amounts are not set aside indefinitely.

Consultation

The Agency affected by this instrument is AFMA. The Agency was provided with drafts of the instrument and agrees with the form of the instrument. No community consultation was carried out as the instrument is for machinery of government purposes only (see sections 17 and 18 of the Legislative Instruments Act 2003).

Estimates of transactions on the Services for Other Entities and Trust Moneys – Australian Fisheries Management Authority Special Account

 

Opening Balance

2008-09

2007-08

$’000

Credits

 

2008-09

2007-08

$’000

Debits

 

2008-09

2007-08

$’000

Closing Balance

2008-09

2007-08

$’000

Services for Other Entities and Trust Moneys – Australian Fisheries Management Authority Special Account

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Overview

The Financial Management and Accountability Act 1997 was enacted to ensure proper management and accountability of Commonwealth finances, including the establishment of Special Accounts as outlined in the Act. Determination 2008/12 was introduced to create a Special Account, specifically the Australian Fisheries Management Authority Services for Other Entities and Trust Moneys Special Account (AFMA SOETM Special Account). This was to address the need for the Australian Fisheries Management Authority (AFMA), which became a prescribed agency under the FMA Act from 1 July 2008, to hold and expend funds on behalf of entities other than the Commonwealth. The establishment of this Special Account allows AFMA to manage small amounts of miscellaneous moneys, such as those received from services performed for non-prescribed entities or from Comcare for workers' compensation payments. The Determination specifies the nature of transactions that can be credited to and debited from the Special Account, ensuring that the funds are used appropriately and in accordance with the FMA Act.

Scope and Application

The Determination 2008/12 under the Financial Management and Accountability Act 1997 establishes the Australian Fisheries Management Authority Services for Other Entities and Trust Moneys Special Account (AFMA SOETM Special Account), which is intended for the Australian Fisheries Management Authority (AFMA) to hold and manage funds on behalf of non-Commonwealth entities and individuals. The AFMA, as a prescribed agency under the FMA Act from 1 July 2008, will utilise this Special Account to facilitate the holding and expenditure of moneys received for services rendered to non-Commonwealth entities, including other governments, and to manage funds such as those received from Comcare for workers’ compensation payments. The establishment of this Special Account is governed by the appropriation under section 20 of the FMA Act and requires the Finance Minister to table the Determination in both Houses of Parliament, subject to disallowance within five sitting days of tabling. The Special Account can be debited for specified purposes, including the payment of expenses related to services provided to other entities, in accordance with subclauses 5(a) to 5(d) of the Determination. This Determination ensures that the AFMA can effectively manage trust monies and other funds that do not constitute Special Public Money, facilitating the timely and appropriate use of these funds.

Key Provisions

Determination 2008/12 under the Financial Management and Accountability Act 1997 (FMA Act) establishes a Special Account titled the Australian Fisheries Management Authority Services for Other Entities and Trust Moneys Special Account (AFMA SOETM Special Account) (sections 1 and 2). This account allows the Australian Fisheries Management Authority (AFMA) to manage and expend funds on behalf of entities other than the Commonwealth (section 2). The nature of the amounts that can be credited to this account includes funds received for services provided to non-government entities and amounts from Comcare related to workers' compensation payments (section 2). The primary purposes for which the account can be debited include payments for services rendered to non-government entities and other permissible transactions under section 28 of the FMA Act (clause 5(a) and (b)). Additionally, the account can be debited to reduce its balance by amounts that are not classified as Special Public Money, ensuring these funds are not held indefinitely (clause 5(d)). The AFMA, as a prescribed agency under the FMA Act, has specific obligations related to the management of the SOETM Special Account. It must ensure that all transactions comply with the provisions outlined in the Determination and the FMA Act. This includes maintaining accurate records of all credits and debits to the account and ensuring that all expenditures are within the prescribed purposes (section 22). The AFMA is also required to report on the use of the account in accordance with the Financial Management and Accountability Act 1997, ensuring transparency and accountability in its financial dealings (section 22). Breaching the provisions of the Determination 2008/12 or mismanaging the AFMA SOETM Special Account can lead to civil or criminal consequences. While the Determination does not explicitly outline penalties, any misuse of public funds or failure to comply with the FMA Act could result in legal action under relevant sections of the Act. Such actions could include fines, restitution, or other penalties as prescribed under the Financial Management and Accountability Act 1997 or other relevant legislation. The severity of the consequences would depend on the nature and extent of the breach, with potential maximum penalties as determined by the applicable laws.

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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.