EXPLANATORY STATEMENT
Issued by the authority of the Minister for Finance and Deregulation
Financial Management and Accountability Act 1997
FMA Act (Royal Australian Mint Special Account) Determination 2013/04
This determination (the Determination) is made under subsections 20(1) of the Financial Management and Accountability Act 1997 (FMA Act) and establishes a new Special Account entitled the Royal Australian Mint 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.
Purposes of this Determination
The Determination establishes a Special Account for the Royal Australian Mint (the Mint) to use to manage all of its operations. The crediting clauses have been drafted to ensure that the Mint may credit receipts collected from its revenue raising activities. These activities relate to renting excess vault space to commercial entities, and using spare tooling assets to provide tooling services to commercial entities.
The Mint anticipates transferring the balance of its current Special Account, the Minting and Coinage Special Account, to the Royal Australian Mint Special Account and managing all future appropriations through the latter Special Account.
Consultation
The Department of the Treasury and the Mint were consulted. As the instrument is for internal machinery of government purposes only, no consultation was necessary with other persons outside the Commonwealth (see sections 17 and 18 of the Legislative Instruments Act 2003).
Table of Balances and Transactions
The table below outlines the financial implications of the Determination. There is no net change to the Commonwealth’s fiscal and underlying cash balances.
Special Account | 2013-2014 ($’000) |
Opening Balance | Credits | Debits | Closing Balance |
Minting and Coinage Special Account | 9,723 | 0 | -9,723 | 0 |
Royal Australian Mint Special Account | 0 | 9,723 | 0 | 9,723 |
Note: these figures are indicative only and 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) was enacted to address the need for effective financial management and accountability within the Australian Government. This Act provides the framework for managing public money and ensures that it is used in accordance with the appropriation by the Parliament for the purposes of the Commonwealth. Under this Act, the Minister for Finance and Deregulation can establish Special Accounts to facilitate specific financial operations, such as the Royal Australian Mint Special Account established by the FMA Act (Royal Australian Mint Special Account) Determination 2013/04. This Determination, issued under subsections 20(1) of the FMA Act, creates a new Special Account for the Royal Australian Mint to manage its operations, ensuring that all revenues and expenditures are appropriately tracked and accountable. The policy objective of this Determination is to streamline the financial operations of the Mint by consolidating its financial activities into a single Special Account, thereby improving financial oversight and efficiency. The process for establishing such Special Accounts is subject to parliamentary scrutiny, ensuring transparency and accountability in government financial management.
Scope and Application
The Financial Management and Accountability Act 1997 (FMA Act) provides for the establishment of Special Accounts to manage specific purposes, and the FMA Act (Royal Australian Mint Special Account) Determination 2013/04 establishes a new Special Account specifically for the Royal Australian Mint. This account is intended to manage all operations of the Mint, including revenue from activities such as renting excess vault space and providing tooling services to commercial entities. The Determination ensures that the Mint can credit receipts from these activities and manage its appropriations effectively. The creation of this Special Account is subject to parliamentary tabling and disallowance procedures under the FMA Act, ensuring transparency and accountability in the use of Commonwealth funds. Notably, this Determination is exempt from the operation of certain sections of the Legislative Instruments Act 2003 and does not require a Statement of Compatibility with Human Rights as it is not subject to disallowance under the relevant provisions of that Act.
Key Provisions
The FMA Act (Royal Australian Mint Special Account) Determination 2013/04 (the Determination) establishes a new Special Account, the Royal Australian Mint Special Account (section 20(1)). This Special Account is intended to manage all operations of the Royal Australian Mint (the Mint), including revenue activities such as renting excess vault space and providing tooling services to commercial entities. The existing Minting and Coinage Special Account is anticipated to transfer its balance to the new Special Account, which will then manage all future appropriations.
Entities governed by the Act must adhere to the provisions set forth in the Determination, ensuring that the Mint utilises the Royal Australian Mint Special Account for all operations as specified. The crediting clauses within the Determination ensure that the Mint can credit receipts from its revenue-raising activities directly into the Special Account. The Mint must manage its finances in accordance with these provisions, ensuring that all financial activities are appropriately recorded and accounted for within the Special Account.
The Determination imposes certain obligations on the Mint, including the need to report and manage its finances in accordance with the crediting and debiting clauses outlined in the Determination. The Mint must ensure that all financial transactions are accurately recorded and that the Special Account is used solely for the purposes specified. Failure to comply with these obligations could result in financial mismanagement and potential legal repercussions.
There are no explicit offences, penalties, or civil/criminal consequences outlined in the Determination itself. However, breaches of the provisions may lead to administrative or financial penalties under other applicable legislation. The Determination does not specify maximum penalties but notes that it is exempt from the disallowance provisions under section 42 of the Legislative Instruments Act 2003 and the sunsetting provisions of the same Act (subsection 20(6) and 20(7) of the FMA Act). This exemption means that the Determination is not subject to the same disallowance or sunsetting procedures as other legislative instruments.