Overview

The Financial Management and Accountability Act 1997 was enacted to provide a framework for the financial management and accountability of the Commonwealth. The Act ensures that all revenues and moneys raised or received by the Government form one Consolidated Revenue Fund and that these funds can only be spent under an appropriation by the Parliament. Determination 2009/04, made under section 20 of the FMA Act, was introduced to address the operational impracticalities in varying the existing Comcover Account. The Minister for Finance and Deregulation issued this determination to establish a new Comcover Special Account while allowing the balance of the existing account to be transferred to the new account until it reaches zero, at which point the original account will be abolished. The Department of Finance and Deregulation, the agency affected by this instrument, agrees with the form of the instrument, and no further consultation was considered necessary due to the internal nature of the changes.

Scope and Application

The Financial Management and Accountability Act 1997 (FMA Act) Determination 2009/04, made under section 20, concerns the variation and eventual abolition of The Comcover Account. This determination applies specifically to the Financial Management and Accountability Act 1997, affecting the Financial Management and Accountability Act 1997 (FMA Act) and the Comcover Account established within the Consolidated Revenue Fund (CRF). The Act applies to entities and transactions involving the Comcover Account, which is a Special Account supported by an appropriation under the FMA Act. The determination is concerned with the mechanics of transferring the remaining balance of the Comcover Account to a newly established Comcover Special Account and abolishing the original account once its balance is zero. The process for establishing or varying Special Accounts, including this determination, requires the Finance Minister to table a copy of the determination in each House of Parliament, allowing for potential disallowance within five sitting days of tabling. This determination applies nationally as a Commonwealth instrument, and there are no exclusions or exemptions specified within the text.

Key Provisions

The main operative sections of the Determination 2009/04, as referenced in the explanatory statement, involve the variation and subsequent abolition of The Comcover Account. Specifically, section 20 of the Financial Management and Accountability Act 1997 (FMA Act) enables the Finance Minister to make a determination that varies and abolishes the account, and section 22 of the FMA Act mandates the tabling of this determination in Parliament. The determination seeks to address practical issues arising from the initial establishment of the Comcover Account in 1998 by establishing a new Comcover Special Account. This new account will credit the balance of the existing Comcover Account until it reaches zero, at which point the existing account will be abolished (section 22 of the FMA Act). The obligations and requirements imposed by this determination are primarily administrative and procedural. The Finance Minister must ensure that the new Comcover Special Account determination is made in accordance with the provisions of the FMA Act. The Department of Finance and Deregulation, as the affected agency, is required to prepare and submit the necessary documentation to the Minister. Moreover, under section 22 of the FMA Act, the Minister must table the determination in each House of Parliament, and it must be open to disallowance by either House within five sitting days. Regulation 10 of the Legislative Instruments Regulations 2004 preserves the disallowance provisions, exempting Special Account determinations from certain subsections of the Legislative Instruments Act 2003. Breaches of the obligations and requirements set out in the Determination 2009/04 may lead to civil or criminal consequences, depending on the nature of the breach. However, the explanatory statement does not specify any particular offences, penalties, or consequences for non-compliance with the determination. Generally, violations of the Financial Management and Accountability Act 1997 could result in penalties, including fines or imprisonment, as outlined in the Act. Nonetheless, the specific penalties for breaches related to this determination would depend on the context and severity of the non-compliance. The absence of detailed penalties in the explanatory statement implies that standard provisions within the FMA Act would apply.