EXPLANATORY STATEMENT
Issued by the authority of the Minister for Finance and Deregulation
Financial Management and Accountability Act 1997
FMA Act (Variations and abolitions of Special Accounts) Determination 2013/05
This determination (the Determination) is made under subsections 20(2) and 20(3) of the Financial Management and Accountability Act 1997 (FMA Act). The Determination varies and abolishes two Special Accounts. Section 48A of the Legislative Instruments Act 2003 applies to the Determination.
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 varies the Family Court of Australia Litigants’ Fund Special Account and the Federal Magistrates Court Litigants’ Fund Special Account (the Special Accounts) to allow the new Family Court and Federal Circuit Court of Australia Agency (the Agency) to be able to pay amounts from the Special Accounts to another Special Account with a similar purpose.
Should the Litigants' Fund Special Account determination (2013/06) not be disallowed by the Parliament, it is expected that the Agency would transfer to it the entire balance of the Special Accounts, and manage all future amounts relating to litigation in the courts that it manages through the Litigants' Fund Special Account. The Determination provides that the Special Accounts are abolished either on the day the balance reaches zero, or 31 December 2013.
Consultation
The Family Court of Australia, Federal Circuit Court of Australia and Attorney-General’s Department 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 |
Federal Magistrates Court Litigants’ Fund Special Account | 844 | 0 | -844 | 0 |
Family Court of Australia Litigants’ Fund Special Account | 647 | 0 | -647 | 0 |
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) was enacted to ensure the responsible and accountable management of Commonwealth finances, providing a framework for the financial management of the government. This Act addresses the need for clear guidelines and controls over the use and appropriation of Commonwealth funds, aligning with constitutional requirements that all government revenues must form part of the Consolidated Revenue Fund and can only be spent through parliamentary appropriation. The FMA Act was introduced by the Australian Parliament to provide a robust financial management system that ensures transparency, accountability, and efficient use of public funds.
The FMA Act (Variations and abolitions of Special Accounts) Determination 2013/05, made under the authority of the Minister for Finance and Deregulation, varies and abolishes two Special Accounts established under the FMA Act: the Family Court of Australia Litigants’ Fund Special Account and the Federal Magistrates Court Litigants’ Fund Special Account. The primary policy objective of this Determination is to facilitate the transfer of these accounts' balances to a new Litigants’ Fund Special Account, managed by the Family Court and Federal Circuit Court of Australia Agency, thereby streamlining the financial management of litigation-related funds within the courts it oversees. This change aims to enhance efficiency and centralise the management of these funds, ensuring they are appropriately allocated and used for their intended purposes. The Determination is subject to parliamentary disallowance procedures and does not require a Statement of Compatibility with Human Rights, as it is not subject to disallowance under the Legislative Instruments Act 2003.
Scope and Application
The FMA Act (Variations and abolitions of Special Accounts) Determination 2013/05 applies to the Family Court of Australia Litigants’ Fund Special Account and the Federal Magistrates Court Litigants’ Fund Special Account. This determination is made under the Financial Management and Accountability Act 1997 and is an administrative measure to facilitate the operations of the Family Court and Federal Circuit Court of Australia Agency. It allows these courts to transfer funds from the Special Accounts to another Special Account with a similar purpose. The Determination provides for the abolition of the two Special Accounts either when their balances reach zero or on 31 December 2013. This determination has a Commonwealth jurisdictional reach, as it pertains to government funds and accounts managed at the federal level. The Determination is exempt from the disallowance procedure under section 42 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 section 42 of the Legislative Instruments Act 2003. The Determination does not specify any exclusions or exemptions beyond those outlined in the FMA Act.
Key Provisions
The Financial Management and Accountability Act 1997 (FMA Act) authorises the establishment, variation, and abolition of Special Accounts, which are essentially sub-accounts of the Consolidated Revenue Fund (CRF) (section 20). This Determination (F2013L01052) specifically varies and abolishes two Special Accounts, the Family Court of Australia Litigants’ Fund Special Account and the Federal Magistrates Court Litigants’ Fund Special Account (section 20(2) and 20(3)). These accounts are now to be managed by the Family Court and Federal Circuit Court of Australia Agency, and they will be transferred to the Litigants' Fund Special Account once the relevant legislation is enacted and the balance of these accounts reaches zero or by 31 December 2013 (section 20).
Under this Determination, the Family Court and Federal Circuit Court of Australia Agency now has the authority to transfer funds from these Special Accounts to another account with a similar purpose. The Agency is expected to manage all future litigation-related amounts through the Litigants’ Fund Special Account. This change streamlines the financial management process and ensures that the accounts are aligned with the operational structure of the courts. The Agency must ensure that all transactions are within the parameters set out in the Determination and comply with any additional requirements stipulated by the FMA Act and other relevant legislation.
The obligations imposed by this Determination on the Family Court and Federal Circuit Court of Australia Agency include ensuring that the transfer of funds from the Special Accounts to another account is conducted in accordance with the Determination, and that all transactions are properly documented and reported. The Agency must also ensure that the Special Accounts are managed efficiently and effectively, and that the balance of these accounts reaches zero or is abolished by 31 December 2013 as per the Determination.
Breaching the requirements set out in this Determination could result in civil or criminal penalties, depending on the nature and severity of the breach. However, the Determination does not explicitly state any specific offences, penalties, or consequences for breach. It is likely that any breaches would be addressed under the general provisions of the FMA Act, which includes provisions for fines, imprisonment, or other penalties as determined by the courts. The exact penalties would depend on the specific circumstances of the breach and would be determined in accordance with the relevant laws and regulations.