EXPLANATORY STATEMENT

Select Legislative Instrument 2011 No. 49

Minute No. 6 of 2011 - Minister for Finance and Deregulation

Subject -              Financial Management and Accountability Act 1997

Financial Management and Accountability Amendment

Regulations 2011 (No. 1 )

The Financial Management and Accountability Act 1997 (FMA Act) provides a framework of rules for the proper management of public money and public property by Chief Executives and officials of FMA Act agencies.

Subsection 65(1) of the FMA Act provides that the Governor-General may make regulations prescribing matters required or permitted by that Act to be prescribed, or necessary or convenient to be prescribed for carrying out or giving effect to that Act.

The Regulations amend the Financial Management and Accountability Regulations 1997 (FMA Regulations) to prescribe people who are members of the Australian Civilian Corps as officials within the Australian Agency for International Development (AusAID).

The Australian Civilian Corps employees are civilian specialists who are engaged as Commonwealth employees, for specified periods, to work in crisis environments overseas before returning to their regular employment.

The Regulations include a person engaged under the Australian Civilian Corps Act 2011 in the definition of “employee” for the purposes of the FMA Regulations. The Regulations also reorder the list of Acts under the definition of “employee”, from alphabetical, to the year of the Act listed. The Regulations also amend the description of AusAID (in item 102 of Schedule 1 to the FMA Regulations) to include persons engaged under section 19 of the Australian Civilian Corps Act 2011.

The Regulations bring the Australian Civilian Corps under the FMA Act, making them subject to the financial management arrangements prescribed in the FMA Act.

Consistent with section 17 of the Legislative Instruments Act 2003, consultation was undertaken with the relevant officers at AusAID, which resulted in these changes to the FMA Regulations. Specifically, AusAID was consulted on the description of their prescribed agency status.

The Office of Best Practice Regulation also advised that a Regulatory Impact Statement is not necessary as the amendments are likely to have no or low regulatory impacts on business and individuals or the economy. 

The FMA Act does not specify conditions that need to be met before the power to make the Regulations may be exercised.

The Regulations are a legislative instrument for the purposes of the Legislative Instruments Act 2003.

The Regulations commence on the commencement of section 3 of the Australian Civilian Corps Act 2011.

The Minute recommended that Regulations be made.

Authority:            Subsection 65(1) of the Financial Management and Accountability Act 1997