Financial Management and Accountability (Amendment of Establishment of Special Account) Determination 2002/06
The Minister for Employment and Workplace Relations declared on 10 April 2002, pursuant to section 100 of the Seafarers Rehabilitation and Compensation Act 1992 ('the Seafarers Act'), that the Seafarers Safety, Rehabilitation and Compensation Authority ('the Authority') is to have the functions, powers and obligations of the Fund, under the Seafarers Act;
I, NICK HUGH MINCHIN, Minister for Finance and Administration, make this Determination under subsection 20 (1) of the Financial Management and Accountability Act 1997.
Dated 9 August 2002
Nick Minchin
Minister for Finance and Administration
1 Name of Determination
This Determination is the Financial Management and Accountability (Establishment of Special Account) Determination 2002/06.
2 Commencement
This Determination commences in accordance with section 22 of the Financial Management and Accountability Act 1997 ('the FMA Act').
3 Establishment of Special Account
A Special Account is established under section 20(1) of the FMA Act to be called the 'Seafarers Rehabilitation and Compensation Account' ('the Account').
(2) The following amounts may be credited to the Account:
(a) amounts collected under the Seafarers Rehabilitation and Compensation Levy Collection Act 1992 ('the Levy Collection Act');
(b) amounts paid to the Commonwealth by any person, or transferred within the Consolidated Revenue Fund, for any of the purposes of the Account other than a departmental or administered purpose referred to in clause 3(e); and
(c) amounts appropriated for the purposes of the Account.
(3) The Account has the following purposes for or in relation to which amounts may be expended or transferred within the Consolidated Revenue Fund:
(a) the payment of claims, or other amounts payable by the Authority under or by virtue of the Seafarers Act ,being amounts payable because of the declaration of the Authority as the Fund;
(b) the payment of expenditure incurred in, or attributable to, the administration of the Fund;
(c) payment to persons from whom the levy was collected under the Levy Collection Act;
(d) the payment of any premium for a policy of insurance or indemnity for any amount of the Authority's liability under the Seafarers Act;
(e) any departmental purpose or administered purpose of the Department administering the Seafarers Act, but only up to an amount which had previously been expended by the Department for other purposes of the Account; and
(f) payment to any trading corporation which may be approved under s.96 of the Seafarers Act to be the Fund for the purposes of that Act, of an amount not exceeding the amount of levy collected under the Levy Act, less the any payments made from the Account.
Overview
The Financial Management and Accountability (Establishment of Special Account) Determination 2002/06 was enacted to address the need for a dedicated account to manage the funds collected under the Seafarers Rehabilitation and Compensation Levy Collection Act 1992 and related obligations. This Determination was made by the Minister for Finance and Administration, Nick Minchin, on 9 August 2002 under subsection 20(1) of the Financial Management and Accountability Act 1997. The primary objective of this legislation is to ensure that the Seafarers Rehabilitation and Compensation Account is established to handle the specific financial requirements of the Seafarers Rehabilitation and Compensation Authority, thereby maintaining proper financial management and accountability. The establishment of this special account ensures that funds are correctly allocated for the payment of claims, administration costs, and other related expenditures as stipulated by the Seafarers Rehabilitation and Compensation Act 1992.
Scope and Application
The Financial Management and Accountability (Establishment of Special Account) Determination 2002/06 applies to the establishment and management of the Seafarers Rehabilitation and Compensation Account within the framework of the Financial Management and Accountability Act 1997. This account is specifically designated for the purposes of the Seafarers Rehabilitation and Compensation Act 1992, where the Seafarers Safety, Rehabilitation and Compensation Authority has been declared to have the functions, powers, and obligations of the Fund. The Act applies to the Authority and all entities involved in the collection and disbursement of funds related to seafarers' rehabilitation and compensation, ensuring that financial management and accountability are upheld. The geographic reach of this legislation is national, as it pertains to the Commonwealth's financial management practices and the administration of the Seafarers Rehabilitation and Compensation Account across Australia. The Act does not explicitly state any exclusions or exemptions, but it does outline specific purposes for which the account can be used, thereby restricting its application to the defined scope. The authority to extend or restrict the application of this Determination can be exercised through subordinate instruments under the Financial Management and Accountability Act 1997.
Key Provisions
The Financial Management and Accountability (Establishment of Special Account) Determination 2002/06 establishes a special account called the 'Seafarers Rehabilitation and Compensation Account'. This account, established under section 20(1) of the Financial Management and Accountability Act 1997 ('FMA Act'), is designed to manage funds related to seafarers' rehabilitation and compensation, as declared by the Minister for Employment and Workplace Relations. The account can receive amounts collected under the Seafarers Rehabilitation and Compensation Levy Collection Act 1992 ('Levy Collection Act'), payments made to the Commonwealth for relevant purposes, and appropriations for the account. The funds can be expended for several purposes, including the payment of claims under the Seafarers Rehabilitation and Compensation Act 1992 ('Seafarers Act'), administration costs, refunds to persons from whom the levy was collected, premiums for insurance or indemnity policies, and payments to approved trading corporations.
The obligations imposed by this Determination include ensuring that the Seafarers Rehabilitation and Compensation Account is used exclusively for the purposes outlined in the FMA Act and the Seafarers Act. This involves strict adherence to the specified uses of the account, such as ensuring that the funds are not diverted to other purposes unless explicitly allowed by the legislation. The Seafarers Safety, Rehabilitation and Compensation Authority, now responsible for the functions, powers, and obligations of the Fund under the Seafarers Act, must ensure that the account is managed in accordance with these provisions. Additionally, any payments made from the account must be properly documented and justified to ensure compliance with the legislative intent.
Breaches of the provisions outlined in the Financial Management and Accountability (Establishment of Special Account) Determination 2002/06 can lead to serious consequences. The FMA Act provides for penalties for non-compliance, which may include both civil and criminal sanctions. Specifically, misuse of funds or failure to properly account for the funds in the Seafarers Rehabilitation and Compensation Account could result in fines or imprisonment, depending on the severity and intent of the breach. The maximum penalties for such offences can be significant, reflecting the importance of the funds for seafarers' rehabilitation and compensation. Therefore, adherence to the legislative requirements is crucial to avoid legal repercussions.