EXPLANATORY STATEMENT
Issued by the authority of the Minister for Finance and Deregulation
Financial Management and Accountability Act 1997
Determination 2009/31 to abolish three Special Accounts
Purposes of Determination 2009/31
The attached instrument makes a determination under subsection 20 (3) of the Financial Management and Accountability Act 1997 (FMA Act) to abolish the National Action Plan for Salinity and Water Quality (National Activities) Special Account (NAP Special Account), the Australian Antarctic Heritage Conservation Special Account, and the Intergovernmental Nutrition 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 the purposes 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 the 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, such a determination is not subject to parliamentary disallowance.
Operation of Determination 2009/31
Reasons for abolishing the Special Accounts
The Special Accounts being abolished are administered by the Department of Agriculture, Fisheries and Forestry (DAFF), the Department of Environment, Water, Heritage and the Arts (DEWHA), and the Department of Health and Ageing (DoHA).
DAFF has advised that the NAP Special Account is now redundant. The Special Account was established for expenditure relating to activities managed by the Commonwealth under the National Action Plan for Salinity and Water Quality, which ceased on 30 June 2008.
The Australian Antarctic Heritage Conservation Special Account was established to manage public donations to facilitate the conservation of Antarctic and sub-Antarctic heritage. DEWHA has identified an alternative mechanism to manage these donation amounts and as a result, the Special Account is no longer required.
After reviewing the Special Accounts that it administers, DoHA has advised that no further activities will be funded through the Intergovernmental Nutrition Special Account. The Special Account is therefore no longer required.
Effect of this Determination
The NAP Special Account, the Australian Antarctic Heritage Conservation Special Account and the Intergovernmental Nutrition Special Account are abolished by this Determination, (Determination 2009/31).
Consultation
DAFF, DEWHA and DoHA are the agencies affected by this instrument. The agencies were provided with drafts of the instrument and agree 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 Special Accounts
| 2009-10 ($’000) |
| Opening Balance | Credits | Debits | Closing Balance |
National Action Plan for Salinity and Water Quality (National Activities) Special Account | 0 | 0 | 0 | 0 |
Australian Antarctic Heritage Conservation Special Account | 0 | 0 | 0 | 0 |
Intergovernmental Nutrition Special Account | 0 | 0 | 0 | 0 |
Overview
The Financial Management and Accountability Act 1997 (FMA Act) was enacted to provide a framework for the financial management of the Commonwealth, ensuring accountability and transparency in the use of public funds. In 2009, Determination 2009/31 was made under the authority of the Minister for Finance and Deregulation to abolish three Special Accounts: the National Action Plan for Salinity and Water Quality (National Activities) Special Account, the Australian Antarctic Heritage Conservation Special Account, and the Intergovernmental Nutrition Special Account. These accounts were deemed redundant due to the cessation of relevant activities and the establishment of alternative mechanisms for managing funds. The abolition of these accounts was in line with the policy objective of streamlining financial management processes and eliminating unnecessary administrative burdens. The determination was not subject to disallowance by Parliament, as per the provisions of the FMA Act, and was agreed upon by the relevant departments.
Scope and Application
The Financial Management and Accountability Act 1997 Determination 2009/31, issued under the authority of the Minister for Finance and Deregulation, pertains to the abolition of three specific Special Accounts within the Consolidated Revenue Fund of the Commonwealth of Australia. These accounts, which were established to manage funds for particular purposes, include the National Action Plan for Salinity and Water Quality (National Activities) Special Account, the Australian Antarctic Heritage Conservation Special Account, and the Intergovernmental Nutrition Special Account. The determination applies to the relevant departments responsible for these accounts, namely the Department of Agriculture, Fisheries and Forestry, the Department of Environment, Water, Heritage and the Arts, and the Department of Health and Ageing, respectively. The decision to abolish these accounts was made following the cessation of related activities, rendering the accounts redundant. This determination is in accordance with subsection 20(3) of the FMA Act and is subject to the procedural requirements of section 22 of the same Act, though it is exempt from disallowance. The abolition of these Special Accounts does not extend to other accounts or require broader consultation with external stakeholders as the changes are purely internal to the government's financial management processes.
Key Provisions
Determination 2009/31 under the Financial Management and Accountability Act 1997 (FMA Act) establishes the abolition of three Special Accounts: the National Action Plan for Salinity and Water Quality (National Activities) Special Account, the Australian Antarctic Heritage Conservation Special Account, and the Intergovernmental Nutrition Special Account. These Special Accounts, as referenced in section 20(3) of the FMA Act, were previously established to manage specific funds from the Consolidated Revenue Fund (CRF) for particular purposes. The NAP Special Account was dedicated to activities under the National Action Plan for Salinity and Water Quality, which concluded on 30 June 2008, making the account redundant. The Australian Antarctic Heritage Conservation Special Account managed public donations for Antarctic and sub-Antarctic heritage conservation, a function now handled by an alternative mechanism. The Intergovernmental Nutrition Special Account, overseen by the Department of Health and Ageing, is no longer required as no further activities are to be funded through it.
The obligations imposed by Determination 2009/31 primarily concern the administration and oversight of these Special Accounts. The Finance Minister, under section 20 of the FMA Act, is required to establish or vary these accounts by making a determination, which must then be tabled in each House of the Parliament. The affected departments, namely the Department of Agriculture, Fisheries and Forestry, the Department of Environment, Water, Heritage and the Arts, and the Department of Health and Ageing, were consulted and provided feedback on the draft instrument, concurring with its form and necessity. As the determination is intended for internal government purposes, no broader consultation was deemed necessary.
The abolition of these Special Accounts carries specific financial and administrative consequences. The accounts are to be closed, with any remaining balances either reallocated or otherwise managed in accordance with the FMA Act and relevant budgetary procedures. The determination does not require parliamentary disallowance, as per section 22 of the FMA Act, which mandates disallowance provisions for establishing or varying Special Accounts but not for their abolition. The departments involved are now required to adjust their financial management practices to reflect the closure of these accounts. Any financial transactions that might have been processed under these accounts post-determination would need to be re-evaluated or redirected in compliance with existing appropriations and financial regulations.