EXPLANATORY STATEMENT
Issued by the authority of the Minister for Finance and Deregulation
Financial Management and Accountability Act 1997
Financial Management and Accountability (Variation of the Energy Special Account) Determination 2012/01
Purpose of the Determination
The Determination is made under subsection 20(2) of the Financial Management and Accountability Act 1997 (FMA Act) and varies the following Special Account:
Energy Special Account – Department of Resources, Energy and Tourism
Special Accounts generally
In accordance with the Constitution, all revenues or moneys raised or received by the Commonwealth form one Consolidated Revenue Fund (CRF) and may not be spent unless under an appropriation is made 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.
Operation of this Determination
This Special Account is used to assist in implementing the agreed work plans of the Council of Australian Governments (COAG) Standing Council on Energy and Resources (SCER). The SCER’s terms of reference were revised in September 2011. Therefore the determination expands the purposes of the Special Account to include activities that contribute to policy development in the energy, resources, minerals and mining sectors.
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 (Variation of the Energy Special Account) Determination 2012/01 was enacted under the Financial Management and Accountability Act 1997 to address a gap in the management of financial resources allocated for specific purposes within the government. This determination was issued by the Minister for Finance and Deregulation and is aimed at varying the Energy Special Account managed by the Department of Resources, Energy and Tourism. The purpose is to expand the purposes of the Special Account to include activities that contribute to policy development in the energy, resources, minerals, and mining sectors, reflecting the updated terms of reference of the Council of Australian Governments (COAG) Standing Council on Energy and Resources. The legislation ensures that the Special Account, which is a subset of the Consolidated Revenue Fund, is used efficiently and effectively to support the agreed work plans of relevant councils, enhancing accountability and financial management within the government.
Scope and Application
The Financial Management and Accountability (Variation of the Energy Special Account) Determination 2012/01 applies to the Energy Special Account within the Department of Resources, Energy and Tourism, a Commonwealth entity. It operates under the Financial Management and Accountability Act 1997, which governs the appropriation and expenditure of Commonwealth funds. This Determination modifies the Energy Special Account to align with the revised terms of reference of the Standing Council on Energy and Resources, established under the Council of Australian Governments. It facilitates the implementation of work plans that contribute to policy development in the energy, resources, minerals, and mining sectors. The Determination is subject to parliamentary oversight, requiring tabling in both Houses of Parliament, with a disallowance period of five sitting days. Additionally, this Determination is exempt from certain provisions of the Legislative Instruments Act 2003, specifically from the sunsetting and disallowance procedures, as stipulated by the Financial Management and Accountability Act 1997.
Key Provisions
The Financial Management and Accountability (Variation of the Energy Special Account) Determination 2012/01 (hereafter, the Determination) operates under subsection 20(2) of the Financial Management and Accountability Act 1997 (FMA Act) to modify the Energy Special Account held by the Department of Resources, Energy and Tourism. This Determination was necessitated by the revised terms of reference for the Council of Australian Governments (COAG) Standing Council on Energy and Resources (SCER) in September 2011, which led to the expansion of the Special Account's purposes to include policy development in the energy, resources, minerals, and mining sectors.
The main operative sections of the Determination involve the amendment of the Energy Special Account to align with the updated mandates of the SCER. This includes the allowance for funds within the Special Account to be utilised for activities that contribute to policy development in the specified sectors. This change is intended to provide more flexibility and resources to the Council as it undertakes its work under the new terms of reference. The Determination ensures that the Special Account is still supported by an appropriation under section 20 of the FMA Act and follows the tabling and disallowance procedures outlined in section 22 of the FMA Act.
The Determination imposes several obligations and requirements on the parties involved. Firstly, it mandates that the Energy Special Account can only be debited or credited for purposes specified in the Determination, which are aligned with the updated policy development activities of the SCER. The Department of Resources, Energy and Tourism must ensure that all expenditures from the Special Account adhere to these revised purposes. Additionally, the Determination requires that the Finance Minister must table a copy of the determination in each House of the Parliament, allowing for potential disallowance by either House within five sitting days.
There are no direct offences or penalties specified within the Determination itself; however, any misuse of the funds within the Energy Special Account would be subject to the general provisions of the FMA Act. Under the FMA Act, unauthorised expenditure or misuse of public funds could result in criminal and civil consequences. For instance, section 17 of the FMA Act provides that a person who makes or authorises an unauthorised expenditure commits an offence and is liable to a penalty of up to three times the amount of the expenditure. Additionally, such conduct could also lead to disciplinary action under other relevant legislation.