Federal Register of Legislation - Australian Government

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2010/06 Determinations/Financial (Other) as made
This Determination establishes the Indigenous Remote Service Delivery Special Account.
Administered by: Finance
General Comments: This determination takes effect on the day immediately after the last day on which a House of Parliament could have passed a resolution disallowing it (see s 22(4) of the Financial Management and Accountability Act 1997).

This determination was originally made under subsection 20(1) of the Financial Management and Accountability Act 1997 and from 1 July 2014 is taken to have been made under subsection 78(1) of the Public Governance, Performance and Accountability Act 2013 (see Schedule 2, Part 2, item 36 of the Public Governance, Performance and Accountability (Consequential and Transitional Provisions) Act 2014).
Made 26 May 2010
Registered 04 Jun 2010
Tabled HR 15 Jun 2010
Tabled Senate 15 Jun 2010

EXPLANATORY STATEMENT

Issued by the authority of the Minister for Finance and Deregulation

Financial Management and Accountability Act 1997

Determination 2010/06 to establish a Special Account

Purposes of Determination 2010/06

The attached instrument makes a determination under subsection 20 (1) of the Financial Management and Accountability Act 1997 (FMA Act) to establish a Special Account, entitled Indigenous Remote Service Delivery Special Account.  It also specifies the nature of amounts that may be credited to, and the purposes for which amounts may be debited from, the Indigenous Remote Service Delivery 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 2010/06

Purpose of the Indigenous Remote Service Delivery Special Account

The Determination will establish a Special Account to be administered by the Department of Families, Housing, Community Services and Indigenous Affairs to administer a Flexible Funding Pool to support the National Partnership Agreement on Remote Service Delivery, as announced to the Parliament by the Prime Minister on 11 February 2010 in tabling the Closing the Gap report for 2010.

The purpose of the Special Account is to support the National Partnership Agreement on Remote Service Delivery, by providing the Government with a capacity to fund high priority projects in priority Indigenous communities, and to deliver immediate improvements to service delivery that are unable to be accommodated through existing programs in the short or medium term (for example, due to a mismatch in eligibility criteria or where existing program funding is fully committed).  In particular, there will be a focus on improving the design, delivery and coordination of services and infrastructure in priority Indigenous communities, and addressing agreed community priorities identified through Local Implementation Plans under the National Partnership Agreement on Remote Service Delivery or related processes. 

 

Subclause 5 (1) specifies the purposes for which amounts may be debited from the Special Account.

  • Paragraphs 5 (1) (a) to (c) describe the primary purposes for which expenditure can be made from the Special Account.
  • Paragraph 5 (1) (d) allows costs for activities that are incidental to one or more of the purposes mentioned in paragraphs 5 (1) (a) to (c) to be debited from the Special Account.
  • Paragraph 5 (1) (e) allows amounts credited to the Special Account to be repaid to the original payer, including the residual after payments are made under paragraphs 5 (1) (a) to (c).

·        Paragraph 5 (1) (f) allows the balance of the Special Account to be reduced without a real or notional payment occurring.  It is included to ensure that amounts held in the Special Account are not set aside indefinitely.

·        Paragraph 5 (1) (g) allows the Special Account to be debited in a manner that would otherwise be permitted by section 28 of the FMA Act.  It is included to simplify accounting for these transactions.

Consultation

The Departments of Families, Housing, Community Services and Indigenous Affairs, Education, Employment and Workplace Relations, and Health and Ageing 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 Indigenous Remote Service Delivery Special Account

 

2010-11 ($’000)

Opening Balance

Credits

Debits

Closing Balance

Indigenous Remote Service Delivery Special Account

0

17,000

17,000

0