EXPLANATORY STATEMENT
Issued by the authority of the Minister for Finance and Deregulation
Financial Management and Accountability Act 1997
FMA Act (Anzac Centenary Public Fund Special Account)
Determination 2013/02 (the Determination)
Purpose of the Determination
The Determination is made under subsection 20(1) of the Financial Management and Accountability Act 1997 (FMA Act) and establishes a new Special Account, the Anzac Centenary Public Fund 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 to the Special Account and the purposes for which the Special Account 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.
Human Rights
A Statement of Compatibility with Human Rights is not required for this determination. Subsection 9(1) of the Human Rights (Parliamentary Scrutiny) Act 2011 requires a Statement of Compatibility with Human Rights for all legislative instruments subject to disallowance under section 42 of the Legislative Instruments Act 2003. While determinations made or varied under subsections 20(1) or 20(2) of the FMA Act are subject to disallowance under section 22 of the FMA Act they are not subject to disallowance under section 42 of the Legislative Instruments Act 2003. Determinations made under subsection 20(3) of the FMA Act are exempt from disallowance under subsection 20(7) of the FMA Act, as such a Statement of Compatibility with Human Rights is not required.
Operation of the Determination
The Determination establishes a Special Account to manage amounts in relation to the Anzac Centenary Public Fund (the Public Fund), held in the Veterans’ Affairs portfolio. The Public Fund was set up to collect donations from the private sector (including individuals) to contribute to the commemoration of the centenary of the First World War and the contribution of service men and women in serving their country in the last 100 years.
The Tax and Superannuation Laws Amendment (2013 Measures No. 2) Bill 2013, which is before the Parliament, would if enacted provide for tax deductibility gift recipient (DGR) status of the Public Fund. This status would to sunset automatically on 1 July 2023. At that time, it can be expected that consideration would be given to abolishing the Special Account.
All moneys received by the Commonwealth that relate to the purposes of the Public Fund must be credited to the Special Account, to provide an additional level of transparency over the Public Fund.
The Special Account also allows the Department of Veterans’ Affairs (DVA) to make payments from the Public Fund for commemoration-related projects and initiatives that are approved by Government.
Consultation
The DVA was consulted in the preparation of this determination. As the determination 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).
Table of Balances and Transactions
The table below outlines the estimated financial implications of the determination on the balance of the Special Account. There is no net impact on the Budget bottom line.
Special Account | 2013-2014 ($m) |
Opening Balance | Credits | Debits | Closing Balance |
Anzac Centenary Special Account | 0 | 24 | -24 | 0 |
Note: these figures are indicative only and may vary from the Agency’s actuals published in the Portfolio Budget Statements and Annual Reports.
Overview
The Anzac Centenary Public Fund Special Account Determination 2013/02 was enacted under the Financial Management and Accountability Act 1997 (FMA Act) by the Minister for Finance and Deregulation, with the objective of addressing the need for a dedicated account to manage funds for the commemoration of the centenary of the First World War and the contributions of service personnel. The FMA Act allows for the establishment of Special Accounts to manage specific funds within the Consolidated Revenue Fund (CRF), and this Determination creates the Anzac Centenary Public Fund Special Account to handle donations and payments related to the Anzac Centenary. All moneys received by the Commonwealth for the Public Fund must be credited to this Special Account, enhancing transparency and accountability over the funds. The Department of Veterans’ Affairs was consulted in the preparation of the determination, and no further consultation was necessary as the determination pertains to internal government operations. The Special Account is expected to sunset automatically on 1 July 2023, in line with the sunsetting of the Public Fund's tax deductibility gift recipient status.
Scope and Application
The Anzac Centenary Public Fund Special Account Determination 2013/02, made under the Financial Management and Accountability Act 1997 (FMA Act), establishes a new Special Account for managing funds related to the Anzac Centenary Public Fund, which collects donations for the commemoration of the First World War centenary and the service of Australian men and women in the past 100 years. This Special Account, supported by an appropriation under the FMA Act, is intended to ensure that all funds related to the Public Fund are transparently managed and only spent on approved projects. The determination is subject to disallowance procedures outlined in the FMA Act, where it can be disallowed by either House of Parliament within five sitting days of tabling, or it comes into effect if not disallowed. The Special Account allows the Department of Veterans’ Affairs to make payments for approved commemorative projects and initiatives. The determination does not require a Statement of Compatibility with Human Rights as it is not subject to disallowance under the Legislative Instruments Act 2003.
Key Provisions
The Anzac Centenary Public Fund Special Account Determination 2013/02 (section 1) establishes a Special Account under the Financial Management and Accountability Act 1997 (FMA Act). The Anzac Centenary Public Fund Special Account is intended to manage funds related to the Anzac Centenary Public Fund, which was set up to collect donations for the commemoration of the centenary of the First World War and the service of Australian military personnel over the past 100 years. The Special Account allows for the transparent management of funds received by the Commonwealth for the Public Fund and enables the Department of Veterans’ Affairs to make payments from the Public Fund for approved commemoration-related projects and initiatives.
The Act imposes specific obligations on the parties involved. The Commonwealth is required to credit all moneys received that relate to the purposes of the Public Fund to the Special Account. This ensures that all funds intended for the Public Fund are appropriately accounted for. The Department of Veterans’ Affairs, as the administering department, is responsible for managing the Special Account and ensuring that payments from the Public Fund are made only for approved projects and initiatives. The determination also mandates that the determination be tabled in each House of the Parliament, providing an opportunity for disallowance within five sitting days if either House chooses to do so. If no disallowance resolution is passed, the determination comes into effect.
There are no specific offences outlined in the Determination, and no penalties are stated for breaches of the requirements set out. However, the disallowance process provides a mechanism for parliamentary oversight and control over the determination. If either House of Parliament passes a disallowance resolution within the prescribed timeframe, the determination will not come into effect. This process ensures that the establishment and operation of the Special Account are subject to parliamentary scrutiny, providing a safeguard against improper or unauthorised use of the funds.
The Anzac Centenary Public Fund Special Account Determination 2013/02 does not require a Statement of Compatibility with Human Rights. This is because the determination is not subject to disallowance under section 42 of the Legislative Instruments Act 2003, and therefore does not need to comply with the requirements of the Human Rights (Parliamentary Scrutiny) Act 2011. The determination is intended for internal machinery of government purposes only, and no consultation was necessary with other persons beyond the Department of Veterans’ Affairs, as required by sections 17 and 18 of the Legislative Instruments Act 2003.
The financial implications of the determination are outlined in a table that shows the estimated balance of the Special Account for the year 2013-2014. The table indicates that the Special Account is expected to have an opening balance of $0, with credits and debits of $24 million each, resulting in a closing balance of $0. It is noted that these figures are indicative and may vary from the actual figures published in the Portfolio Budget Statements and Annual Reports. Importantly, the table shows that there is no net impact on the Budget bottom line, indicating that the establishment of the Special Account does not require additional budgetary allocations.