EXPLANATORY STATEMENT

Issued by the authority of the Minister for Finance and Administration

Financial Management and Accountability Act 1997

Determination 2006/71 to vary and abolish a Special Account

Purposes of Determination 2006/71

The attached instrument makes a determination under section 20 of the Financial Management and Accountability Act 1997 (FMA Act) to vary and subsequently abolish the Australians at War 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 is 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 a purpose specified in the determination.

Determinations that establish Special Accounts, or vary determinations that establish Special Accounts, are subject to section 22 of the FMA Act. Section 22 of the FMA Act requires the Finance Minister to table a copy of the establishing or varying determination in each House of Parliament. Either House may disallow a determination within five sitting days of tabling.  If the determination is not disallowed, it comes into effect on the calendar day after the last day on which it could have been disallowed.

Regulation 10 of the Legislative Instruments Regulations 2004 preserves the disallowance provisions under section 22 of the FMA Act by exempting Special Account determinations from subsections 57(2) and 57(5) of the Legislative Instruments Act 2003.

Special Accounts can be abolished by a determination of the Finance Minister.  However, there is no requirement to table such a determination.

Operation of the Determination 2006/71

Purpose of the Australians at War Account

A new Special Account, entitled the Australians at War Special Account (‘the new Account’), is required in order to give effect to changes that are required to the Australians at War Account, but which are not practical to make by variation to the Australians at War Account due to the way in which the original determination was structured.

The current purposes of the Australians at War Account are:

for the production and promotion of the ‘Australians at War’ documentary and to assist with the costs of manufacture and distribution of educational materials for Australian schools in support of the documentary series, to be administered by the Department of Veterans’ Affairs.

Changes required

A clause has been inserted to allow amounts to be debited from the Australians at War Account and credited to the new Account.

Limitations in the structure of the original determination

It is not practical to vary the determination signed by the Minister for Finance and Administration on 29 August 2000, which established the Australians at War Account.  This is because the format of the determination constrains the amount of information that can be included.  Accordingly, a new Account is being established (Determination 2006/72) to provide for the continuation of the activities of the Australians at War Account, the incorporation of the necessary changes, and to ensure that the determination is as clear and informative as possible.

Effect of this determination

The Australians at War Account is being varied by this determination (Determination 2006/72) to enable its balance to be credited to the new Account.  Once the balance of the Australians at War Account reaches zero, clause 4 of the determination will abolish the Australians at War Account.

Consultation

The Department of Veterans’ Affairs is the agency affected by this instrument. The agency was provided with drafts of the instrument and agrees with the form of the instrument. As the instrument is for internal machinery of government purposes only, no consultation was considered necessary with other persons (see sections 17 and 18 of the Legislative Instruments Act 2003).

Estimates of transactions on the Australians at War Account

1. Balance debited from the Australians at War Account and credited to the new Account.