EXPLANATORY STATEMENT

Issued by the authority of the Minister for Finance and Deregulation

Financial Management and Accountability Act 1997

Determination 2009/31 to abolish three Special Accounts

Purposes of Determination 2009/31

The attached instrument makes a determination under subsection 20 (3) of the Financial Management and Accountability Act 1997 (FMA Act) to abolish the National Action Plan for Salinity and Water Quality (National Activities) Special Account (NAP Special Account), the Australian Antarctic Heritage Conservation Special Account, and the Intergovernmental Nutrition 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, 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 the 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, such a determination is not subject to parliamentary disallowance.

Operation of Determination 2009/31

Reasons for abolishing the Special Accounts

The Special Accounts being abolished are administered by the Department of Agriculture, Fisheries and Forestry (DAFF), the Department of Environment, Water, Heritage and the Arts (DEWHA), and the Department of Health and Ageing (DoHA).

DAFF has advised that the NAP Special Account is now redundant. The Special Account was established for expenditure relating to activities managed by the Commonwealth under the National Action Plan for Salinity and Water Quality, which ceased on 30 June 2008.

The Australian Antarctic Heritage Conservation Special Account was established to manage public donations to facilitate the conservation of Antarctic and sub-Antarctic heritage. DEWHA has identified an alternative mechanism to manage these donation amounts and as a result, the Special Account is no longer required.

After reviewing the Special Accounts that it administers, DoHA has advised that no further activities will be funded through the Intergovernmental Nutrition Special Account. The Special Account is therefore no longer required.

Effect of this Determination

The NAP Special Account, the Australian Antarctic Heritage Conservation Special Account and the Intergovernmental Nutrition Special Account are abolished by this Determination, (Determination 2009/31).

Consultation

DAFF, DEWHA and DoHA are the agencies affected by this instrument. The agencies were provided with drafts of the instrument and agree 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 Special Accounts