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Financial Management and Accountability Determination 2010/10 - Australian Quarantine Inspection Service Account Variation and Abolition 2010

Financial Management and Accountability Determination 2010/10 - Australian Quarantine Inspection Service Account Variation and Abolition 2010

Administered by Department of Finance

Legislation au F2010L01975 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 2010/10 to vary and abolish a Special Account

Purposes of Determination 2010/10

The attached instrument makes a determination under subsections 20 (2) and (3) of the Financial Management and Accountability Act 1997 (FMA Act) to vary and subsequently abolish the Australian Quarantine Inspection Service 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 2010/10

Reasons for varying the Special Account

A new Special Account, entitled the Australian Quarantine and Inspection Service Special Account (‘the new Account’), is required in order to give effect to changes that are required to the Australian Quarantine Inspection Service Account, but which are not practical to make by variation to the Australian Quarantine Inspection Service Account due to the way in which the Initial Determination was structured.

The current purposes of the Australian Quarantine Inspection Service Account are:

“For expenditure relating to:

(1) the provision of quarantine and inspection services and matters incidental there to; and

(2) for notional payment of moneys to the Official Public Account, as agreed from time to time by the Minister for Finance and Administration and the relevant Minister.”

Change required

A clause has been inserted to allow amounts to be debited from the Australian Quarantine Inspection Service Account and credited to the new Account.

Effect of this determination

This determination varies the Australian Quarantine Inspection Service Account to allow its balance to be credited to the new Australian Quarantine and Inspection Service Special Account. There may therefore be two Special Accounts with the same purpose operating for a short period of time, until the balance is credited. Clause 4 of Determination 2010/10 provides that the Australian Quarantine Inspection Service Account will be abolished when its balance reaches zero.

Limitations in the structure of the Initial Determination

It is not practical to vary the Initial Determination signed by the delegate of the Minister for Finance and Administration on 31 December 1997 (establishing a Australian Quarantine Inspection Service Reserve as a component of the Reserved Money Fund). This is because the format of the determination constrains the amount of information that can be included. Accordingly, a new Account is being established (Determination 2010/11) to provide for the continuation of the activities of the old Account, the incorporation of the necessary changes, and to ensure that the determination is as clear and informative as possible.

Consultation

The Department of Agriculture, Fisheries and Forestry 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 Australian Quarantine Inspection Service Account

	2009-10 ($’000)
	Opening Balance	Credits	Debits	Closing Balance
Australian Quarantine Inspection Service Account	24,597.9	9,269.0	33,866.9(1)	0

1. Includes balance debited from the Australian Quarantine Inspection Service Account and credited to the new Account.

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, overseen by the Parliament, aims to ensure that public money is managed efficiently and effectively, and that accountability is maintained through rigorous financial controls and reporting. Determination 2010/10, issued under this Act, addresses the need to vary and subsequently abolish the Australian Quarantine Inspection Service Account to facilitate changes that were not feasible within the constraints of the existing account structure. The policy objective behind this determination is to streamline the financial operations of the Australian Quarantine Inspection Service by establishing a new Special Account, the Australian Quarantine and Inspection Service Special Account, which allows for clearer and more effective financial management and accountability. This new account will ensure that funds are appropriately allocated to the provision of quarantine and inspection services and other related matters, while also allowing for the necessary notional payments to the Official Public Account.

Scope and Application

The Financial Management and Accountability Act 1997 (FMA Act) Determination 2010/10 made by the Minister for Finance and Deregulation pertains to the variation and eventual abolition of the Australian Quarantine Inspection Service Account. The Act applies to the financial management practices within the Commonwealth of Australia, particularly affecting the allocation and expenditure of funds within the Consolidated Revenue Fund (CRF). The determination establishes a new Special Account, the Australian Quarantine and Inspection Service Special Account, to address limitations in the initial structure of the original account, thereby ensuring clarity and effectiveness in the allocation of funds for quarantine and inspection services. The new account allows for the continuation of activities previously covered by the Australian Quarantine Inspection Service Account while incorporating necessary changes. This determination is integral to the financial operations of the Department of Agriculture, Fisheries and Forestry, which was consulted and agrees with the changes outlined in the instrument. The determination is structured to allow the balance of the existing account to be credited to the new account until the original account is abolished when its balance reaches zero.

Key Provisions

Determination 2010/10 under the Financial Management and Accountability Act 1997 (FMA Act) primarily involves the variation and eventual abolition of the Australian Quarantine Inspection Service Account (section 20(2) and (3)). This determination necessitates the creation of a new account, the Australian Quarantine and Inspection Service Special Account, to accommodate changes that are not feasible to implement under the existing account structure due to constraints in the initial determination (clause 4). During the transition period, both the old and new accounts may operate concurrently until the balance of the old account is fully transferred to the new one. The obligations imposed by this determination on the relevant parties primarily revolve around the proper management and administration of the accounts involved. The Department of Agriculture, Fisheries and Forestry, as the agency affected by this instrument, must ensure that the transition between the accounts is conducted smoothly and that all financial transactions are accurately recorded and reported (section 22). This includes debiting the old account and crediting the new one as per the terms outlined in the determination. Additionally, the Finance Minister is required to table a copy of the determination in each House of the Parliament, allowing for a five-day period during which either House may disallow the determination. The consequences of non-compliance with the provisions of Determination 2010/10 are not explicitly detailed in the explanatory statement. However, under the FMA Act, failure to adhere to the provisions of a determination can potentially lead to legal and financial repercussions. Generally, any breach of the financial management and accountability requirements set out in the FMA Act could result in administrative or legal action, including financial penalties. While the specific penalties are not mentioned in this context, they could vary depending on the severity and nature of the breach. The Act also provides for the disallowance of a determination by either House of Parliament within five sitting days of it being tabled, which serves as a formal mechanism to prevent the implementation of an unlawful or inappropriate determination.

Area of Law: Financial Management & Accountability
Instrument: Determination
Concepts: Definitions & Interpretation; Repeal & Amendment; Enforcement Powers; Administrative Discretion

Interactions

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.

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