Financial Management and Accountability Determination 2009/08 – Indigenous Employment Special Account Establishment 2009

Administered by Department of Finance

Legislation au F2009L00843 Not in force Legislative Instrument

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EXPLANATORY STATEMENT

Issued by the authority of the Minister for Finance and Deregulation

Financial Management and Accountability Act 1997

Determination 2009/08 to establish the Indigenous Employment Special Account

Purposes of Determination 2009/08

The attached instrument makes a determination under section 20 of the Financial Management and Accountability Act 1997 (FMA Act) to establish a Special Account entitled the Indigenous Employment 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 Indigenous Employment 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 may be 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 Determination 2009/08

The Northern Territory Flexible Funding Pool Special Account (NTFFP Special Account) was established on 21 September 2007 to enable the Department of Families, Community Services and Indigenous Affairs (FAHCSIA) to manage a single funding pool for resourcing employment initiatives delivered by a number of Commonwealth agencies, initially only in the Northern Territory.

The Government decided to broaden the geographic range of activities funded through the NTFFP Special Account from March 2009. This was done through Determination 2009/03 as an interim measure, which varied the purposes for which amounts could be debited from the NTFFP Special Account. However, Determination 2009/03 did not change the name of the NTFFP Special Account. This was to ensure that the name remained consistent with section 15 of the Appropriation Act (No. 1) 2008-2009, which refers to the current title of the NTFFP Special Account.

This determination (Determination 2009/08) establishes a replacement Indigenous Employment Special Account with a name that better reflects the nature of activities to be funded through the Special Account. The expenditure purposes of this Indigenous Employment Special Account mirror those of the NTFFP Special Account.

Determination 2009/09, entitled Northern Territory Flexible Funding Pool Special Account Variation and Abolition 2009 varies the NTFFP Special Account to allow its balance to be credited to the new Indigenous Employment Special Account. There may be two Special Accounts with the same purpose, operating for a short period of time until the crediting has occurred. Clause 4 of Determination 2009/09 provides that the NTFFP Special Account will be abolished when its balance reaches zero. From 1 July 2009, the Appropriation Acts are planned to refer to the Indigenous Employment Special Account, not the NTFFP Special Account.

Commencement of this determination

This determination (Determination 2009/08), if not disallowed, commences on 1 July 2009.

Consultation

FAHCSIA 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 Indigenous Employment Special Account

 

Opening Balance

2009-10

$’000

Credits

 

2009-10

$’000

Debits

 

2009-10

$’000

Closing Balance

2009-10

$’000

Indigenous Employment Special Account

38,518

130,287

128,194

40,611

 

Overview

The Financial Management and Accountability Act 1997 was enacted to provide a framework for the financial management of Commonwealth entities, ensuring accountability and transparency in the use of public funds. The Act establishes mechanisms for the appropriation of funds, the management of financial resources, and the reporting of financial performance. The 2009 Determination 2009/08 under this Act was introduced to establish the Indigenous Employment Special Account, reflecting a policy shift to better align the account's purpose with the activities it funds. This determination was made by the Minister for Finance and Deregulation and was designed to ensure that the account's name accurately represents the nature of the activities it supports, specifically those aimed at enhancing Indigenous employment. The policy objective behind this determination was to improve clarity and accountability in the allocation and use of funds dedicated to Indigenous employment initiatives.

Scope and Application

The Financial Management and Accountability Act 1997 Determination 2009/08 establishes the Indigenous Employment Special Account, which is designed to manage funds specifically allocated for Indigenous employment initiatives. This determination applies to the Commonwealth Government, particularly the Department of Families, Community Services and Indigenous Affairs (FAHCSIA), and it governs how funds within this account may be credited and debited. The scope of this account is national, as it pertains to the Consolidated Revenue Fund of the Commonwealth, and it reflects a strategic shift from the previous Northern Territory Flexible Funding Pool Special Account. The new account was created to more accurately represent the purpose and geographic scope of the funded activities, which now extend beyond the Northern Territory. There are no stated exclusions or exemptions within the determination itself, although the specific nature of the allowable transactions and credits to the account are outlined. The account's operations are subject to disallowance provisions under the Financial Management and Accountability Act 1997, and the determination must be tabled in Parliament and may be disallowed within five sitting days if either House chooses to do so. The account is established with an opening balance and is expected to have specific credits and debits as outlined in the estimates provided. The account's balance is projected to transition from the Northern Territory Flexible Funding Pool Special Account, with the latter being abolished once its balance reaches zero.

Key Provisions

The Determination 2009/08 under the Financial Management and Accountability Act 1997 (FMA Act) establishes a new Indigenous Employment Special Account (paragraph 1). This account will replace the existing Northern Territory Flexible Funding Pool Special Account (NTFFP Special Account) as of 1 July 2009 (paragraph 6). The new account will have the same expenditure purposes as the NTFFP Special Account, which is to fund employment initiatives delivered by various Commonwealth agencies (paragraph 5). The obligations imposed by this determination on the relevant parties primarily involve the management and oversight of the Indigenous Employment Special Account (paragraph 1). The Department of Families, Community Services and Indigenous Affairs (FAHCSIA) will be responsible for managing the account, ensuring that the funds are used strictly for the purposes outlined in the determination (paragraph 6). The Finance Minister is required to table a copy of this determination in each House of Parliament, allowing for potential disallowance by either House within five sitting days (section 22 of the FMA Act). If not disallowed, the determination will come into effect on the day after the disallowance period ends (paragraph 6). Under this legislation, there are no specific offences or penalties outlined for breaches of the determination. However, the Financial Management and Accountability Act 1997 provides a framework for financial management within the government. Breaches of financial management regulations could result in disciplinary action, recovery of funds, and potential civil or criminal liability, depending on the nature and severity of the breach. The maximum penalties for breaches of the FMA Act can include fines and imprisonment, as stipulated in the relevant sections of the Act.

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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.