Financial Management and Accountability Determination 2008/13 - Department of the Prime Minister and Cabinet Services for Other Entities and Trust Moneys Special Account Establishment 2008

Administered by Department of Finance

Legislation au F2008L02082 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 2008/13 to establish a Special Account

Purposes of Determination 2008/13

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 Department of the Prime Minister and Cabinet Services for Other Entities and Trust Moneys Special Account (PM&C 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 PM&C 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 2008/13

Purpose of the Department of the Prime Minister and Cabinet Services for Other Entities and Trust Moneys Special Account

The PM&C SOETM Special Account will enable the Department of the Prime Minister and Cabinet (PM&C) to hold and expend amounts on behalf of persons or entities other than the Commonwealth.

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.

PM&C administers an Other Trust Moneys (OTM) Special Account and a Services for other Governments and Non-agency Bodies (SOG) Special Account. As part of simplifying the financial framework, the SOETM Special Account combines the purposes of the two separate OTM and SOG Special Accounts. The SOETM Special Account includes an additional debiting clause at 15(d) to assist in the management of amounts that change in character over time and therefore to ensure that such amounts are not set aside indefinitely.

Clause 5 of the Determination that establishes a Special Account generally specifies the purposes for which a Special Account can be debited. For the SOETM Special Account this is as follows:

  • 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 a change in circumstances under which they are held, are no longer regarded as Special Public Money. It is included to ensure that these amounts are not set aside indefinitely and can be returned to the budget if they are no longer required to be held in the Special Account.

Consultation

The Agency affected by this instrument is PM&C. PM&C 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 Department of the Prime Minister and Cabinet Services for Other Entities and Trust Moneys 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

Department of the Prime Minister and Cabinet Services for Other Entities and Trust Moneys Special Account

**

1,058

**

**

 

Overview

The Financial Management and Accountability Act 1997 was enacted to provide a framework for the financial management and accountability of Commonwealth entities. The Act aims to ensure that the government's financial resources are managed efficiently, effectively, and in accordance with the law. Determination 2008/13, issued under the authority of the Minister for Finance and Deregulation, establishes the Department of the Prime Minister and Cabinet Services for Other Entities and Trust Moneys Special Account (PM&C SOETM Special Account) to facilitate the holding and expenditure of funds on behalf of entities other than the Commonwealth. This Determination sets out the nature of the amounts that may be credited to, and the purposes for which amounts may be debited from, the Special Account. The establishment of this Special Account aims to streamline financial management by combining the functions of previously separate accounts into one, thereby simplifying the financial framework and improving the efficiency of fund management within the PM&C.

Scope and Application

The Financial Management and Accountability Act 1997 (FMA Act) Determination 2008/13 establishes a Special Account called the Department of the Prime Minister and Cabinet Services for Other Entities and Trust Moneys Special Account (PM&C SOETM Special Account), which allows the Department of the Prime Minister and Cabinet (PM&C) to hold and expend moneys on behalf of persons or entities other than the Commonwealth. This Special Account is intended to facilitate the management of small amounts of miscellaneous moneys, such as those received in connection with services performed for other governments or entities, and those received from Comcare in relation to workers' compensation payments. The establishment of this Special Account aims to streamline the financial framework by combining the functions of the existing Other Trust Moneys (OTM) Special Account and the Services for Other Governments and Non-agency Bodies (SOG) Special Account. The Determination specifies the purposes for which the Special Account can be debited, including the expenditure of amounts for services provided to non-agency entities and the management of amounts that change in character over time to prevent indefinite holding of such funds. The Determination is subject to disallowance by either House of Parliament within five sitting days of tabling. If not disallowed, it comes into effect on the day after the last day for disallowance. The disallowance provisions are preserved under section 22 of the FMA Act and Regulation 10 of the Legislative Instruments Regulations 2004. The Special Account is supported by an appropriation under section 20 of the FMA Act, ensuring that funds from the Consolidated Revenue Fund (CRF) are only spent in accordance with parliamentary appropriation for specified purposes.

Key Provisions

The main operative sections of the Determination 2008/13 (section 20 of the Financial Management and Accountability Act 1997) establish the Department of the Prime Minister and Cabinet Services for Other Entities and Trust Moneys Special Account (PM&C SOETM Special Account). This Special Account allows the PM&C to hold and expend funds on behalf of entities other than the Commonwealth, primarily for small amounts of miscellaneous moneys. For instance, it may hold funds received for services rendered to non-government entities or amounts received from Comcare for workers' compensation payments. The Special Account combines the functions of two previous accounts: the Other Trust Moneys (OTM) Special Account and the Services for other Governments and Non-agency Bodies (SOG) Special Account. This consolidation is part of a broader initiative to simplify the financial framework of the Commonwealth. The obligations and requirements imposed by the Act on the PM&C include maintaining accurate records of all transactions within the Special Account and ensuring that all debits and credits comply with the purposes outlined in the Determination. The PM&C must also ensure that all funds are appropriately managed and that any changes in the nature of the funds are accounted for in accordance with the legislation. Additionally, the Determination mandates that the PM&C consult with the relevant entities when handling funds within the Special Account and ensure that all activities are transparent and in line with the objectives of the account. The Act also outlines the consequences for any breaches of the provisions within the Determination. Offences may result in both civil and criminal penalties, depending on the severity and intent of the breach. Under section 23 of the Financial Management and Accountability Act 1997, civil penalties can be imposed for breaches, including fines up to the statutory maximum. Criminal penalties may also apply, with the potential for imprisonment if the breach is deemed to be wilful or reckless. The exact penalties would be determined based on the specific nature of the breach and the discretion of the court. Additionally, any individual found to be in violation of the Act may face professional or employment repercussions, depending on their role and the impact of their actions.

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Financial Management & Accountability
Instrument
Determination
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Definitions & Interpretation
Commencement Provisions
Delegated & Subordinate Legislation
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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.