Overview

The Financial Management Legislation Amendment Act 1999 was enacted to address the need for clarity and consistency in the naming conventions of special accounts established under the Financial Management and Accountability Act 1997. This Act was introduced by the Parliament of Australia with the policy objective of ensuring transparency and accountability in financial management practices. The Act empowers the Finance Minister to rename specific special accounts to better reflect their purpose and activities. The renaming is intended to enhance the understanding of these accounts among stakeholders, thereby supporting better financial oversight and management. The renaming determination, made by John Fahey, the Finance Minister, under subsection 5(d) of the Financial Management Legislation Amendment Act 1999, came into effect from 1 July 1999, and involves renaming several special accounts to provide more precise and descriptive titles, as outlined in the attached schedule.

Scope and Application

The Financial Management Legislation Amendment Act 1999, specifically through the Determination made by the Finance Minister, applies to the renaming of certain Special Accounts established under the Financial Management and Accountability Act 1997. The Act pertains to entities such as AUSCRIPT – Commonwealth Reporting Service, Legal Practice, Artbank, Removals, Australian Government Publishing Service, National Trade and Investment Outlook Conference 1996, Australian Government Analytical Laboratory, Public Sector Management Course, Australian Valuation Office, and Royal Australian Mint and Coinage, which are detailed in the attached schedule of the Determination. The jurisdictional reach of this legislation is at the Commonwealth level, impacting entities that fall under the purview of the Financial Management and Accountability Act 1997. The renaming does not extend to any other accounts or entities not listed in the schedule, and there are no stated exclusions, exemptions, or thresholds in this Determination. The Determination comes into effect from 1 July 1999 and may be further extended or restricted through subordinate instruments as necessary.

Key Provisions

The Financial Management Legislation Amendment Act 1999 (sections 20 and 21) outlines the process for renaming certain special accounts as stipulated in the accompanying schedule. Specifically, section 5(d) of this Act allows the Finance Minister to rename these accounts, which previously belonged to old components of the former Commercial Activities Fund and Reserved Moneys Fund. The renaming process involves changing the names of these accounts to more clearly reflect their purpose, as listed in the attached schedule (sections 1 and 2). The renamed accounts include, for example, AUSCRIPT being renamed AUSCRIPT – Commonwealth Reporting Service Account, and Legal Practice being renamed Legal Practice Account. The Act imposes certain obligations on the entities governed by it. Firstly, the Finance Minister must ensure that the renaming process is carried out as per the attached schedule. Secondly, the entities holding these special accounts must update their records and documentation to reflect the new names. This includes updating financial statements, account titles, and any other relevant records to ensure consistency and accuracy in reporting and accountability. The entities must also communicate the name changes to relevant stakeholders, including government departments, auditors, and other interested parties. Failure to comply with the provisions of the Financial Management Legislation Amendment Act 1999 may result in civil or criminal consequences. While specific offences and penalties are not detailed in the Act itself, the general principles of Australian law apply. Civil penalties may include fines, and in severe cases, criminal charges could be brought against individuals or entities that deliberately or negligently fail to comply with the Act's requirements. The maximum penalties for such offences would depend on the specific circumstances and the relevant legislation governing financial management and accountability. It is important for entities to adhere to the Act to avoid any potential legal repercussions.