Financial Management and Accountability (Establishment of Cultural Special Account) Determination 2011/18

EXPLANATORY STATEMENT

Issued by the authority of the Minister for Finance and Deregulation

Financial Management and Accountability Act 1997

Financial Management and Accountability (Establishment of Cultural Special Account) Determination 2011/18

Purpose of the Determination

The instrument is made under subsection 20 (1) of the Financial Management and Accountability Act 1997 (FMA Act) and establishes a Special Account entitled the Cultural 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 Cultural 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 this Determination

Reasons for establishing this Special Account

This Special Account is required to assist in managing amounts related to undertaking  activities that may be approved by the Minister for the Arts, in relation to joint arrangements with one or more of the State and Territory governments.

Clause 6 of the Determination specifies the purposes for which the Special Account can be debited.

• Clause 6 (1) describes the purposes for expenditure of amounts from the Special Account.
  
   
• Clause 6 (2) allows:
  • the balance of the Special Account to be reduced without a real or notional payment occurring.  It is included to ensure that these amounts are not set aside indefinitely; and
  • incidental activities are specifically included in the purposes outlined in 6(1), to avoid any doubt about whether these activities are included within that subsection.

Consultation

The Department of the Prime Minister and Cabinet is the Agency affected by this determination and was provided with an opportunity to comment on a draft of this instrument and to supply data for the “Estimates of Transactions Table”.  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 balances and transactions

The table below outlines the estimated financial implication of the determination.