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 SOETM Special Account – DVA) Determination 2012/10
Purpose of the Determination
The Determination is made under subsection 20(1) of the Financial Management and Accountability Act 1997 (FMA Act) and establishes a Special Account entitled Services for Other Entities and Trust Moneys Special Account – Department of Veterans’ Affairs.
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 under subsection 20(1) of the FMA Act or vary Special Accounts under subsection 20(2) of the FMA Act are subject to the tabling and disallowance procedures in section 22 of the FMA Act. Section 22 of the FMA Act requires the Finance Minister to table a copy of the determination in each House of the Parliament. Either House may pass a resolution disallowing a determination within five sitting days of tabling. If the determination is not disallowed, it comes into effect on the day immediately after the last day on which it could have been disallowed.
Subsection 20(6) of the FMA Act exempts determinations that establish Special Accounts under subsection 20(1) of the FMA Act or vary Special Accounts under subsection 20(2) of the FMA Act from the operation of Part 6 (sunsetting) of the Legislative Instruments Act 2003.
Subsection 20(7) of the FMA Act exempts determinations that abolish Special Accounts under subsection 20(3) of the FMA Act from the operation of section 42 (disallowance) and Part 6 (sunsetting) of the Legislative Instruments Act 2003.
A Statement of Compatibility with Human Rights is not required for this legislative instrument. Subsection 9(1) of the Human Rights (Parliamentary Scrutiny) Act 2011 requires a Statement of Compatibility with Human Rights for all legislative instruments subject to disallowance under section 42 of the Legislative Instruments Act 2003. While legislative instruments made or varied under subsections 20(1) or 20(2) of the FMA Act are subject to disallowance under section 22 of the FMA Act they are not subject to disallowance under section 42 of the Legislative Instruments Act 2003. Legislative instruments made under subsection 20(3) of the FMA Act are exempt from disallowance under subsection 20(7) of the FMA Act, as such a Statement of Compatibility with Human Rights is not required.
Operation of this Determination
The Services for Other Entities and Trust Moneys Special Account – Department of Veterans’ Affairs (SOETM) combines the purposes of the Other Trust Moneys and the Services for Other Governments and Non-agency Bodies Special Accounts into a single standard purpose Special Account. The SOETM enables the Agency to continue to hold and expend amounts on behalf of persons or entities other than the Commonwealth. Typically the SOETM will be used to accommodate small amounts of miscellaneous moneys. For example, amounts received in connection with services performed for or on behalf of any persons or entities that are not Agencies as prescribed under the FMA Act, such as other governments.
Consultation
The Agency affected by this determination was given an opportunity to comment on the instrument.
As the instrument is for internal machinery of government purposes only, no consultation was necessary with other persons (see sections 17 and 18 of the Legislative Instruments Act 2003).
Overview
The Financial Management and Accountability (Establishment of SOETM Special Account – DVA) Determination 2012/10 was enacted in 2012 to establish a Special Account within the Consolidated Revenue Fund (CRF) for the Department of Veterans' Affairs (DVA). This Determination was made under subsection 20(1) of the Financial Management and Accountability Act 1997 (FMA Act), which empowers the establishment of Special Accounts to facilitate the spending of funds on specified purposes. The policy objective is to enable the DVA to manage and expend funds on behalf of entities other than the Commonwealth, thereby improving financial management and accountability. The process of establishing such Special Accounts is subject to the tabling and disallowance procedures outlined in the FMA Act, ensuring parliamentary oversight. Importantly, this Determination combines the functions of the Other Trust Moneys and Services for Other Governments and Non-agency Bodies Special Accounts into a single account, streamlining financial management while maintaining compliance with constitutional and legislative requirements.
Scope and Application
The Financial Management and Accountability (Establishment of SOETM Special Account – DVA) Determination 2012/10 applies to the Department of Veterans' Affairs within the Commonwealth government of Australia. This determination establishes a Special Account under the Financial Management and Accountability Act 1997, specifically the Services for Other Entities and Trust Moneys Special Account. It facilitates the holding and expenditure of funds on behalf of persons or entities other than the Commonwealth, typically accommodating small amounts of miscellaneous moneys. This account combines the purposes of the Other Trust Moneys and the Services for Other Governments and Non-agency Bodies Special Accounts into a single standard purpose account. The establishment of this Special Account is subject to the tabling and disallowance procedures outlined in the FMA Act, and it is exempt from the sunsetting provisions of the Legislative Instruments Act 2003. Additionally, a Statement of Compatibility with Human Rights is not required as per the Human Rights (Parliamentary Scrutiny) Act 2011.
Key Provisions
The main operative sections of the Determination (subsections 20(1) and 20(2) of the Financial Management and Accountability Act 1997) establish the Services for Other Entities and Trust Moneys Special Account – Department of Veterans’ Affairs (SOETM). This account combines the purposes of the Other Trust Moneys and the Services for Other Governments and Non-agency Bodies Special Accounts into one standard purpose Special Account. The SOETM allows the Department of Veterans’ Affairs to continue holding and expending amounts on behalf of persons or entities other than the Commonwealth, such as other governments. It is typically used for small amounts of miscellaneous moneys received in connection with services performed for or on behalf of non-agency bodies.
The Act imposes certain obligations and requirements on the parties governed by it. Firstly, 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. Secondly, Special Accounts, such as the SOETM, may be established by a determination that sets out the amounts that may be credited and the purposes for which it may be debited. These Special Accounts are supported by an appropriation under section 20 of the FMA Act, allowing amounts from the CRF to be spent on the specified purposes.
There are no specific offences, penalties, or civil/criminal consequences mentioned in the Determination for breach of the Act. However, determinations that establish Special Accounts under subsection 20(1) of the FMA Act or vary Special Accounts under subsection 20(2) of the FMA Act are subject to the tabling and disallowance procedures in section 22 of the FMA Act. Either House of the Parliament may pass a resolution disallowing a determination within five sitting days of tabling. If the determination is not disallowed, it comes into effect on the day immediately after the last day on which it could have been disallowed. Subsection 20(6) of the FMA Act exempts determinations that establish Special Accounts under subsection 20(1) of the FMA Act or vary Special Accounts under subsection 20(2) of the FMA Act from the operation of Part 6 (sunsetting) of the Legislative Instruments Act 2003. Subsection 20(7) of the FMA Act exempts determinations that abolish Special Accounts under subsection 20(3) of the FMA Act from the operation of section 42 (disallowance) and Part 6 (sunsetting) of the Legislative Instruments Act 2003.