FMA Act (Litigants' Fund Special Account) Determination 2013/06

Administered by Department of Finance

Legislation au F2013L01051 Not in force Legislative Instrument

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EXPLANATORY STATEMENT

Issued by the authority of the Minister for Finance and Deregulation

Financial Management and Accountability Act 1997

FMA Act (Litigants’ Fund Special Account) Determination 2013/06

Purpose of the Determination

This Determination is made under subsection 20(1) of the Financial Management and Accountability Act 1997 (FMA Act) and establishes a new Special Account, the Litigants’ 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 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.

Exemption from Statement of Compatibility with 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 this Determination

The Federal Circuit Court of Australia and Family Court of Australia will be merged into a single Agency subject to the FMA Act in 2013. This determination establishes a new Special Account on 1 July 2013, which will allow the new Agency to collect and retain all amounts related to litigation in the courts that it administers.

The Special Account can also receive amounts that are to the credit of the Special Accounts currently maintained by the Federal Circuit Court of Australia and Family Court of Australia. It is expected that the latter two Special Accounts will transfer their total balances to the Litigants’ Fund Special Account.

Consultation

The two Agencies affected by this determination were consulted – Family Court of Australia, and Federal Circuit Court of Australia. 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).

Table of Balances and Transactions

The table below outlines the estimated financial implications of the determination on the balances of the Special Accounts. There is no net change to the Commonwealth’s fiscal and underlying cash balances.

Special Account	2013-2014 ($’000)
Special Account	Opening Balance	Credits	Debits	Closing Balance
Family Court of Australia Litigants’ Fund Special Account	647	0	-647	0
Federal Magistrates Court Litigants’ Fund Special Account	844	0	-844	0
Litigants’ Fund Special Account	0	1,491	0	1,491

Note: these figures are estimates that may vary from the Agencies’ actuals published in the Portfolio Budget Statements and Annual Reports.

Overview

The Financial Management and Accountability Act 1997 (FMA Act) Determination (No. 6) 2013, issued under the authority of the Minister for Finance and Deregulation, establishes a new Special Account known as the Litigants’ Fund Special Account. This determination addresses the need to consolidate and manage litigation-related funds within the newly merged Federal Circuit Court of Australia and Family Court of Australia, which will operate as a single Agency under the FMA Act from 1 July 2013. The establishment of this Special Account ensures that the new Agency can effectively collect, retain, and manage all litigation-related funds, while also allowing for the transfer of existing balances from the current Special Accounts of the Federal Circuit Court of Australia and Family Court of Australia. The determination is subject to the tabling and disallowance procedures outlined in section 22 of the FMA Act, which requires the Finance Minister to table a copy in each House of the Parliament, with either House having five sitting days to pass a disallowance resolution. Exemptions from certain sections of the Legislative Instruments Act 2003 apply to this determination, as outlined in the FMA Act.

Scope and Application

The Litigants’ Fund Special Account established by the FMA Act (Litigants’ Fund Special Account) Determination 2013/06 applies to the newly formed agency resulting from the merger of the Federal Circuit Court of Australia and the Family Court of Australia. The determination outlines the purposes and conditions for the establishment of the Litigants’ Fund Special Account, which will collect and retain all amounts related to litigation in the courts administered by the new agency. This determination does not extend its application to any other entities, industries, or conduct outside of the newly merged agency. The scope of the Act is national as it pertains to the Commonwealth of Australia and its consolidated revenue fund. The Act does not specify any exclusions or exemptions, and its application is primarily restricted to the financial management and accountability of the new agency, ensuring that funds related to litigation are properly credited and debited for specified purposes. The Act also allows for adjustments to the application through subordinate instruments, which must follow the disallowance procedures outlined in section 22 of the Financial Management and Accountability Act 1997.

Key Provisions

The Litigants’ Fund Special Account established under this determination is intended to consolidate the existing Special Accounts of the Family Court of Australia and the Federal Circuit Court of Australia. Section 20(1) of the Financial Management and Accountability Act 1997 (FMA Act) facilitates the creation of this account, which will facilitate the management of funds related to litigation in the courts administered by the new merged Agency. This new account is intended to streamline the handling of litigation-related funds, ensuring that all such funds are managed under a single account. Under the FMA Act, this determination imposes several obligations on the relevant entities. Firstly, the merged Agency must adhere to the stipulations set out in the determination for the management and utilisation of the Litigants’ Fund Special Account. This includes ensuring that all funds credited to this account are specifically for the purposes outlined in the determination, and that any debits from the account are also in accordance with the prescribed purposes. The determination also requires that the Agency maintain accurate records of all transactions involving the Special Account, ensuring transparency and accountability in the handling of these funds. Failure to comply with the provisions of this determination could result in significant legal consequences. Although the document does not explicitly outline penalties for non-compliance, breaches of the FMA Act generally can lead to both civil and criminal penalties. Civil penalties can include fines, and in severe cases, criminal penalties might be applicable, including imprisonment. The exact penalties would depend on the specific nature and severity of the breach, but the overarching principle is that adherence to the Act and its determinations is crucial to avoid legal repercussions.

Area of Law: Administrative Law
Instrument: Statutory Instrument
Concepts: Definitions & Interpretation; Commencement Provisions; Delegation & Subordinate Legislation; Parliamentary Oversight

Interactions

Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.

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