EXPLANATORY STATEMENT
Financial Management and Accountability Act 1997,
Net Appropriation Agreement (Australian Public Service Commission) Variation (2006)
The instrument to which this explanatory statement relates
This explanatory statement relates to an instrument, made under section 31 of the Financial Management and Accountability Act 1997 (FMA Act), entitled “Financial Management and Accountability Net Appropriation Agreement (Australian Public Service Commission) Variation (2006)” (the instrument).
The legislative authority under which the instrument is made
Section 31 of the FMA Act enables the Minister for Finance and Administration (the Finance Minister) to enter into agreements for the purposes of items in Appropriation Acts that are marked “net appropriation” (net appropriation agreements).
Section 31 of the FMA Act, together with certain standard provisions of the annual Appropriation Acts, for example section 10 of Appropriation Act (No.1) 2005-2006, provides for appropriation items to be increased by amounts received by an agency for items specified in the agreement, allowing amounts equivalent to the receipts to be spent.
Subsection 31(3) of the FMA Act provides that an agreement may be for any period, including a period longer than a financial year. An agreement need not relate to a particular Appropriation Act or Acts. Generally, agreements continue until circumstances require their renewal.
Subsection 31(4) of the FMA Act enables the Finance Minister to cancel or vary an agreement at any time without the consent of the other party.
Purpose and operation of the instrument
The instrument varies the operation of the current net appropriation agreement for the Australian Public Service Commission (APSC), which commenced on 23 June 2005.
The instrument adds receipts received as financial incentives to enter into leasing arrangements to the list of eligible receipts in the APSC’s current agreement.
The instrument commences upon registration on the Federal Register of Legislative Instruments.
Consultation
The Department of Finance and Administration (Finance) has consulted with APSC regarding the effect of this instrument.
As the instrument is for internal machinery of government purposes only, no consultation, beyond that identified above, was considered necessary (see sections 17 and 18 of the Legislative Instruments Act 2003).
Additional Information
Agreements made under section 31 of the FMA Act are not subject to the parliamentary disallowance and sunsetting provisions of the Legislative Instruments Act 2003: see item 19 in subsection 44(2) and item 17 in subsection 54(2) of the Legislative Instruments Act 2003.