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 – FWO) Determination 2012/13
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 – Office of the Fair Work Ombudsman.
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 – Office of the Fair Work Ombudsman (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 – FWO) Determination 2012/13 was enacted under the Financial Management and Accountability Act 1997 to establish a Special Account for the Office of the Fair Work Ombudsman. This legislation aims to address the need for a consolidated account to manage and disburse funds on behalf of entities other than the Commonwealth, ensuring compliance with the financial management practices outlined in the FMA Act. The enactment body was the Parliament of Australia, with the policy objective to streamline financial operations and enhance accountability within the Office of the Fair Work Ombudsman. The Special Account, known as the Services for Other Entities and Trust Moneys Special Account – Office of the Fair Work Ombudsman, consolidates the functions of previously separate accounts to facilitate the management of miscellaneous funds received in connection with services rendered for other governments or non-agency bodies. This determination is subject to parliamentary scrutiny, ensuring transparency and adherence to legislative requirements.
Scope and Application
The Financial Management and Accountability (Establishment of SOETM Special Account – FWO) Determination 2012/13, made under the Financial Management and Accountability Act 1997, establishes a Special Account named the Services for Other Entities and Trust Moneys Special Account – Office of the Fair Work Ombudsman. This Special Account allows the Fair Work Ombudsman to manage and expend funds on behalf of entities other than the Commonwealth, such as other governments, thereby consolidating the functions previously served by the Other Trust Moneys and Services for Other Governments and Non-agency Bodies Special Accounts. This account is essential for handling small, miscellaneous amounts of money received in connection with services provided for non-agency bodies. The Determination is subject to parliamentary scrutiny and disallowance procedures, as outlined in the FMA Act, ensuring that it complies with the legislative requirements for financial management within the Commonwealth. Notably, this instrument is exempt from certain provisions of the Legislative Instruments Act 2003 and does not require a Statement of Compatibility with Human Rights as it is not subject to disallowance under section 42 of that Act.
Key Provisions
The Financial Management and Accountability (Establishment of SOETM Special Account – FWO) Determination 2012/13 establishes a Special Account under the Financial Management and Accountability Act 1997 (FMA Act). Specifically, section 20(1) of the FMA Act allows for the creation of a Special Account, which in this case is the Services for Other Entities and Trust Moneys Special Account – Office of the Fair Work Ombudsman (SOETM). This Special Account serves to consolidate the purposes of the Other Trust Moneys and the Services for Other Governments and Non-agency Bodies Special Accounts, facilitating the handling and expenditure of funds on behalf of entities other than the Commonwealth.
According to the determination, the SOETM allows the Office of the Fair Work Ombudsman to manage and disburse funds for services provided to or on behalf of non-agency bodies, such as other governments. This is particularly useful for accommodating small, miscellaneous amounts of money that arise from such services. The determination outlines that the SOETM is supported by an appropriation under section 20 of the FMA Act, ensuring that any spending from this account is authorised by the Parliament.
The obligations imposed by this determination primarily concern the Office of the Fair Work Ombudsman, which is required to manage the SOETM in accordance with the specified purposes. The determination mandates that any funds credited to the SOETM must be used strictly for the purposes outlined in the determination, ensuring that the account is used appropriately and in line with legislative requirements. Additionally, the determination specifies the procedural steps, including tabling and disallowance, that must be followed as per section 22 of the FMA Act.
Regarding consequences for non-compliance, the determination does not explicitly outline specific offences or penalties within its text. However, the broader framework of the FMA Act and related legislation may impose penalties for misuse of funds or failure to comply with financial management directives. Such breaches could potentially lead to civil or criminal consequences, although the exact penalties would be determined by the relevant provisions of the FMA Act and other applicable laws.