EXPLANATORY STATEMENT
Issued by the authority of the Minister for Finance and Deregulation
Financial Management and Accountability Act 1997
Financial Management and Accountability (Variation and Abolition of the Cultural Ministers’ Council Special Account) Determination 2011/17
Purpose of the Determination
The instrument is made under subsection 20(2) of the Financial Management and Accountability Act 1997 (FMA Act) and varies the Cultural Ministers’ Council Special Account.
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, or vary determinations that establish Special Accounts, are subject to section 22 of the FMA Act. Section 22 of the FMA Act requires the Finance Minister to table a copy of the establishing or varying determination in each House of the Parliament. Either House may disallow a determination within five sitting days of tabling. If the determination is not disallowed, it comes into effect on the calendar day after the last day on which it could have been disallowed.
Regulation 10 of the Legislative Instruments Regulations 2004 preserves the disallowance provisions under section 22 of the FMA Act by exempting Special Account determinations from subsections 57(2) and 57(5) of the Legislative Instruments Act 2003.
Operation of this Determination
The instrument abolishes the Cultural Ministers’ Council Special Account which will become redundant to requirements, following discontinuation of the Commonwealth and State/Territory Cultural Ministers’ Council, which is expected to meet for the final time in August 2011.
The Determination will allow any remaining balance to be debited from the Cultural Ministers’ Council Special Account and to be credited to the new Cultural Special Account. Subsequently, the former Special Account will be abolished on the earlier of when its balance reaches zero and 31 December 2011. Any balance existing after 31 December 2011 will be remitted to the CRF.
Effect of this Determination
There may be two Special Accounts with similar purposes operating for a short period of time, until the remaining balance is credited to the Cultural Special Account.
Consultation
The Department of the Prime Minister and Cabinet (PM&C) is the Agency affected by this instrument. The Agency was provided with drafts of the instrument and agrees with the form of the instrument. PM&C supplied data for the “Table of Balances and Transactions” (below). As the instrument is for internal machinery of government purposes, no consultation was necessary with other persons (see sections 17 and 18 of the Legislative Instruments Act 2003).
Table of Balances and Transactions of the abolished Special Accounts
The table below outlines the estimated financial implications of the determination.
Special Account | 2011-2012 ($’000) |
Opening Balance | Credits | Debits (1) | Closing Balance |
Cultural Ministers’ Council Special Account | 552 | (32) | 583 | 0 |
(1) includes the balance of $489,000 expected to be credited to the new Cultural Special Account
Overview
The Financial Management and Accountability (Variation and Abolition of the Cultural Ministers' Council Special Account) Determination 2011/17 was enacted to address the redundancy of the Cultural Ministers’ Council Special Account, following the discontinuation of the Commonwealth and State/Territory Cultural Ministers' Council. This instrument, made under subsection 20(2) of the Financial Management and Accountability Act 1997, is designed to manage the transition of the remaining balance from the abolished account to a new Cultural Special Account, while ensuring compliance with the requirements of the Act. The purpose of this determination is to facilitate a smooth financial transition and to ensure that any remaining funds are appropriately allocated. The enacting body for this determination is the Finance Minister, who is required to table a copy in each House of the Parliament, subject to potential disallowance by either House within five sitting days. This process ensures transparency and oversight in the management of government funds.
Scope and Application
The Financial Management and Accountability (Variation and Abolition of the Cultural Ministers’ Council Special Account) Determination 2011/17 is a legislative instrument made under subsection 20(2) of the Financial Management and Accountability Act 1997. This Determination applies to the Cultural Ministers’ Council Special Account, which is a financial instrument used to manage specific appropriations under the Consolidated Revenue Fund (CRF) for the purposes of the Commonwealth. The Act applies to the account by varying it to abolish the Cultural Ministers’ Council Special Account, following the discontinuation of the Commonwealth and State/Territory Cultural Ministers’ Council, which is expected to meet for the final time in August 2011. The instrument allows for the remaining balance of the Special Account to be debited and credited to a new Cultural Special Account, after which the former Special Account will be abolished on the earlier of when its balance reaches zero and 31 December 2011. Any balance existing after 31 December 2011 will be remitted to the CRF. The instrument is subject to disallowance by either House of the Parliament within five sitting days of tabling and comes into effect on the calendar day after the last day on which it could have been disallowed. The Department of the Prime Minister and Cabinet supplied data for the “Table of Balances and Transactions” (below) and agrees with the form of the instrument.
Key Provisions
The Financial Management and Accountability (Variation and Abolition of the Cultural Ministers’ Council Special Account) Determination 2011/17, made under subsection 20(2) of the Financial Management and Accountability Act 1997 (FMA Act), primarily serves to abolish the Cultural Ministers’ Council Special Account (sections 1 and 2). This Special Account was established to manage funds specifically for the Commonwealth and State/Territory Cultural Ministers’ Council, which is set to meet for the final time in August 2011. The Determination facilitates the transfer of any remaining balance from the abolished Special Account to a new Cultural Special Account, and it stipulates that the former account will cease to exist either when its balance reaches zero or by 31 December 2011. Any residual balance after this date will be remitted to the Consolidated Revenue Fund (CRF) (section 3).
The Act imposes several obligations on the relevant parties. The Finance Minister must table a copy of the Determination in each House of the Parliament, in compliance with section 22 of the FMA Act (section 2). Additionally, either House of Parliament has the authority to disallow the Determination within five sitting days of it being tabled. If no disallowance occurs, the Determination takes effect on the day after the last possible day for disallowance. The Department of the Prime Minister and Cabinet, the affected agency, has reviewed the drafts and agrees with the instrument's form, providing necessary data for the accompanying Table of Balances and Transactions (section 4).
In terms of legal consequences, the Determination does not explicitly outline offences or penalties for non-compliance, but breaches of the FMA Act could lead to various civil and criminal penalties as prescribed in other sections of the Act. The disallowance process outlined in section 22 provides a safeguard to ensure the Determination aligns with parliamentary oversight. Given the nature of the Determination, which primarily concerns internal government mechanisms, no external consultation was deemed necessary (sections 17 and 18 of the Legislative Instruments Act 2003).