Explanatory Statement

Financial Management and Accountability Act 1997, Section 32 - Adjustment of appropriations on change of Agency functions

The instrument to which this explanatory statement relates

This explanatory statement relates to an instrument (the instrument) entitled “Direction under Section 32, Financial Management and Accountability Act 1997”, dated 16 October 2007 and numbered 6 of 2007-2008.

The legislative authority under which the instrument is made

Section 32 of the Financial Management and Accountability Act 1997 (‘the FMA Act’) applies if a function of an Agency (the old Agency) becomes a function of another Agency (the new Agency), either because the old Agency is abolished or for any other reason.

Subsection 32(2)(a) of the FMA Act enables the Finance Minister to, amongst other things, issue one or more directions to transfer from the old Agency to the new Agency some or all of an amount that has been appropriated for the performance of that function by the old Agency.

By way of an instrument effective from 1 July 2007 made under section 62 of the FMA Act, the Finance Minister has delegated his power under section 32 to the Chief Executive of the Department of Finance and Administration. By way of an instrument effective from 1 July 2007 made under section 53 of the FMA Act, the Chief Executive of the Department of Finance and Administration has, in turn, delegated the power to the General Manager, Financial Management Group, and the Division Manager, Financial Reporting and Cash Management Division.  The direction is issued by the Division Manager, Financial Reporting and Cash Management Division.

Purpose of the instrument

The instrument directs that part of the departmental items, being an amount of $3,339,016.31 in departmental outputs under Appropriation Act (No. 1) 2006-2007, $9,918,000.00 in departmental outputs under Appropriation Act (No. 3) 2006-2007 and $9,441,889.35 in equity injections under Appropriation Act (No. 4) 2006-2007, provided to the Office of Workplace Services (OWS) be transferred to the Office of the Workplace Ombudsman (OWO).

Background

On 28 June 2007, the Workplace Relations Amendment (A Stronger Safety Net) Act 2007 received royal assent, creating OWO effective 1 July 2007.  OWO will take over the compliance functions of OWS and have extra responsibility for investigations and prosecutions in relation to the Fairness Test and cases involving duress to an employee by the employer when negotiating an Australian Workplace Agreement.

Notes on the instrument

The instrument provides that the amounts set out in column 4 of the table for the appropriation items in column 1 for OWS be transferred to OWO.   

In accordance with the Legislative Instruments Act 2003, OWS and OWO were consulted in the preparation of this instrument.