Overview

The Financial Management and Accountability Act 1997 (FMA Act) was enacted by the Parliament of Australia to ensure proper financial management and accountability of the Commonwealth. The Act addresses the need for an efficient and transparent system for handling public funds, which is fundamental to the governance and administration of the country. Determination 2009/17, issued by the Minister for Finance and Deregulation under section 20 of the FMA Act, serves to vary and abolish the Other Trust Moneys – Medicare Australia Special Account as part of an initiative to streamline the financial framework of the government. This determination is intended to facilitate the integration of the purposes of the Other Trust Moneys and Services for Other Governments and Non-agency Bodies Special Accounts into a new Services for Other Entities and Trust Moneys (SOETM) Special Account, thereby simplifying and consolidating the management of these funds. The policy objective of this determination is to enhance the efficiency and clarity of financial management within the government by reducing the number of special accounts and consolidating their purposes under a single, more straightforward account structure.

Scope and Application

The Financial Management and Accountability Act 1997 Determination 2009/17 applies to the variation and subsequent abolition of the Other Trust Moneys – Medicare Australia Special Account, a financial mechanism used to manage specific revenues and expenditures within the Consolidated Revenue Fund of the Commonwealth of Australia. This determination is a response to an initiative to streamline the financial framework of the government, facilitating the amalgamation of two separate Special Accounts into a newly established Services for Other Entities and Trust Moneys (SOETM) Special Account. The determination ensures that the balance of the Other Trust Moneys – Medicare Australia Special Account is transferred to the new account, rendering it redundant once the transfer is complete. The determination is subject to parliamentary disallowance under section 22 of the FMA Act, but there is no requirement to table a disallowance for the abolition of a Special Account. The jurisdictional reach of this determination is confined to the Commonwealth of Australia, as it involves the management of funds within the Consolidated Revenue Fund, a central financial repository of the federal government. The application of this determination is limited to the entities and purposes specified in the determination itself, primarily involving the Finance Minister and Medicare Australia, the agency directly affected by the changes. The legislation does not extend to other entities, industries, or conduct outside the scope of the specified Special Accounts. The operation of the determination is further clarified by the commencement provisions, which stipulate that the determination will take effect upon compliance with subsection 22(4) of the FMA Act, unless disallowed by either House of Parliament within the specified timeframe. The determination does not include any stated exclusions or thresholds beyond those outlined in the legislation, and its application is not extended through subordinate instruments. The determination is tailored to the internal financial restructuring within the Commonwealth, with no external consultation required due to its internal nature.

Key Provisions

The main operative sections of Determination 2009/17, as referenced in the Financial Management and Accountability Act 1997 (FMA Act), include the variation and subsequent abolition of the Other Trust Moneys – Medicare Australia Special Account (paragraph 1). This determination is made to align with the government's initiative to streamline the financial framework by consolidating separate Special Accounts into a unified Services for Other Entities and Trust Moneys (SOETM) Special Account. Clause 4 of the determination stipulates that the Other Trust Moneys – Medicare Australia Special Account will cease to exist once its balance reaches zero. The obligations and requirements imposed by this determination are primarily procedural and administrative. The Finance Minister is required to table a copy of the determination in each House of Parliament, in accordance with section 22 of the FMA Act (paragraph 2). If the determination is not disallowed within five sitting days, it comes into effect. Moreover, the Other Trust Moneys – Medicare Australia Special Account must be credited to the new Services for Other Entities and Trust Moneys – Medicare Australia Special Account, as specified in the determination. This process may temporarily result in two Special Accounts with similar purposes operating concurrently until the balance of the former is transferred and the account is abolished. There are no specific offences, penalties, or civil/criminal consequences outlined for breaches of this determination. However, the disallowance process provides a mechanism to prevent the determination from coming into effect if concerns are raised by either House of Parliament. Should the determination be disallowed, it would not proceed as planned, and the existing Special Account would continue to operate under its original provisions. The primary focus of this determination is the administrative transition rather than punitive measures for non-compliance.