Financial Management and Accountability Regulations (Amendment) 1998 No. 112
EXPLANATORY STATEMENT
Statutory Rules 1998 No. 112
Issued by authority of the Assistant Treasurer
Financial Management and Accountability Act 1997
Financial Management and Accountability Regulations (Amendment)
Item 9 of Schedule 2 Part 1 of the Productivity Commission (Repeals, Transitional and Consequential Amendments) Act 1998 (the Act) provides that the Governor-General may make regulations in relation to: transitional matters arising out of the repeal of the Economic Planning Advisory Council Act 1983 and the Industry Commission Act 1989, and in relation to the enactment of the Act and the Productivity Commission Act 1998.
Section 65 of the Financial Management and Accountability Act 1997 provides that the Governor-General may make regulations for the purposes of the Act. The Financial Management and Accountability Regulations made under the provisions of the Financial Management and Accountability Act 1997 provide, among other things, that the Industry Commission is a prescribed authority for the purposes of the Financial Management and Accountability Act 1997. The Act abolished of the Industry Commission by repealing the Industry Commission Act 1989. The Industry Commission was replaced by a body called the Productivity Commission, established by the Productivity Commission Act 1998.
The purpose of these regulations is to omit the reference to the Industry Commission found in the Financial Management and Accountability Regulations, and provide that the Productivity Commission is a prescribed authority for the purposes of the Financial Management and Accountability Act 1997.
Details of the regulations are as follows.
Regulation 1. provides that the regulations commence on gazettal.
Regulation 2. provides that the Financial Management an Accountability Regulations are amended as set out in these regulations.
Regulation 3. provides that the reference to the Industry Commission in Item 127 is omitted and a new Item 140A is inserted in lieu, being the reference to the Productivity Commission.
Regulation 4. provides the amendments made by regulation 3 have effect from the commencement of the Productivity Commission Act 1998.
Overview
The Financial Management and Accountability Regulations (Amendment) 1998 No. 112 was enacted to address transitional issues arising from the repeal of the Economic Planning Advisory Council Act 1983 and the Industry Commission Act 1989, and to accommodate the enactment of the Productivity Commission Act 1998. This set of regulations was introduced by the Commonwealth Parliament, pursuant to the authority granted under the Financial Management and Accountability Act 1997 and the Productivity Commission (Repeals, Transitional and Consequential Amendments) Act 1998. The primary policy objective of these amendments is to ensure a seamless transition of financial management and accountability responsibilities from the abolished Industry Commission to the newly established Productivity Commission, thereby maintaining continuity in the oversight and management of public funds.
These regulations specifically aim to update the Financial Management and Accountability Regulations to reflect the legislative changes by removing references to the Industry Commission and incorporating the Productivity Commission as the prescribed authority under the Financial Management and Accountability Act 1997. This amendment ensures that the new regulatory framework aligns with the current legislative environment and continues to provide effective governance and accountability in the management of public resources.
Scope and Application
The Financial Management and Accountability Regulations (Amendment) 1998 No. 112 pertains to the transitional adjustments necessitated by the repeal of the Economic Planning Advisory Council Act 1983 and the Industry Commission Act 1989, as well as the enactment of the Productivity Commission Act 1998. This legislation applies to entities and authorities that were previously governed by the Industry Commission Act and now must comply with the Financial Management and Accountability Act 1997. The regulations specifically address the transition from the Industry Commission to the Productivity Commission, ensuring that the new body is recognised as a prescribed authority under the Financial Management and Accountability Act. The regulations take effect from the commencement of the Productivity Commission Act 1998, as outlined in Regulation 4, thereby ensuring a smooth and legally compliant transition. The scope of these regulations is limited to the amendments necessary to reflect the legislative changes, without any broader application to other entities or industries.
Key Provisions
The Financial Management and Accountability Regulations (Amendment) 1998 No. 112 (the Amendment Regulations) modify the Financial Management and Accountability Regulations 1997 (the Original Regulations) primarily to reflect the legislative changes introduced by the Productivity Commission (Repeals, Transitional and Consequential Amendments) Act 1998. Section 65 of the Financial Management and Accountability Act 1997 (FMA Act) grants the power to make regulations for the purposes of the FMA Act. Regulation 1 specifies that the Amendment Regulations come into force on the day of their gazettal. Regulation 2 indicates that the Original Regulations are amended in accordance with the provisions of these Amendment Regulations.
Under the Amendment Regulations, the most significant change is the substitution of the Productivity Commission for the Industry Commission in the context of prescribed authorities. Regulation 3 removes the reference to the Industry Commission in Item 127 of the Original Regulations and inserts a new Item 140A that refers to the Productivity Commission. This change ensures that the Productivity Commission, established under the Productivity Commission Act 1998, is recognised as a prescribed authority for the purposes of the FMA Act. Regulation 4 specifies that these amendments take effect from the commencement of the Productivity Commission Act 1998.
The Amendment Regulations impose obligations on the Productivity Commission, now recognised as a prescribed authority, to adhere to the financial management and accountability standards set out in the FMA Act. This includes ensuring compliance with financial reporting requirements, maintaining adequate internal controls, and providing transparency in financial management practices. The Productivity Commission must ensure that it has appropriate systems and processes in place to meet these obligations, including the preparation and submission of financial reports and statements to the relevant authorities.
Failure to comply with the provisions of the FMA Act and the amended Financial Management and Accountability Regulations may result in significant consequences. Section 127 of the FMA Act provides that a person who contravenes a provision of the Act or the regulations is liable to a civil penalty. The maximum penalty for an individual is $22,200 or five times the value of any benefit received, whichever is the greater, and for a body corporate, the penalty is $222,000 or three times the value of any benefit received, whichever is the greater. Additionally, officers or employees of a body corporate who are responsible for the contravention may face personal penalties. Criminal sanctions may also apply in cases of serious misconduct, with penalties including fines and imprisonment.