Federal Register of Legislation - Australian Government

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2011/18 Determinations/Financial (Other) as made
This Determination creates the Cultural 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This determination was originally made under subsection 20(1) of the Financial Management and Accountability Act 1997 and from 1 July 2014 is taken to have been made under subsection 78(1) of the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).
Registered 25 Aug 2011
Tabling HistoryDate
Tabled HR12-Sep-2011
Tabled Senate12-Sep-2011

Commonwealth Coat of Arms

I, PENELOPE YING YEN WONG, Minister for Finance and Deregulation, make this Determination under subsection 20 (1) of the Financial Management and Accountability Act 1997.

Dated 15th  August 2011

 


1              Name of Determination

                This Determination is the Financial Management and Accountability (Establishment of Cultural Special Account) Determination 2011/18.

2              Commencement

                This Determination commences on the time at which subsection 22 (4) of the FMA Act is complied with. 

Note       This Determination takes effect in accordance with section 22 of the FMA Act. The Parliament must consider the Determination before it can take effect, and either House may pass a resolution disallowing the Determination. If neither House passes such a resolution, the Determination takes effect on the day immediately after the last day upon which such a resolution could have been passed.

3              Definition

                In this Determination:

FMA Act means the Financial Management and Accountability Act 1997.

Special Account has the meaning given by Section 5 of the Act.

4              Establishment

                For paragraph 20 (1) (a) of the FMA Act, a Special Account is established with the name Cultural Special Account.

5              Amounts to be credited

                For paragraph 20 (1) (b) of the FMA Act, any amount received in relation to the performance or administration of cultural activities may be credited to the Cultural Special Account.

Note 1    The Appropriation Acts provide that if any of the purposes of a Special Account are covered by an item in those Acts (whether or not the item expressly refers to the Special Account), then amounts may be debited against the appropriation for that item and credited to the Special Account.

Note 2    Subsection 39 (5) of the FMA Act provides that upon realisation of an investment of an amount debited from a Special Account, the proceeds of the investment must be credited to that Special Account.

Note 3    Section 30 of the FMA Act has the effect that if an amount expended from a Special Account is repaid to the Commonwealth, that amount must be re-credited to that Special Account.

Note 4    Section 30A of the FMA Act has the effect of increasing the appropriation under section 20 of the FMA Act for the purposes of a Special Account (and thereby increasing this Special Account’s balance). The increase is of an amount equivalent to any GST amount that is recoverable in relation to a payment, and occurs immediately before the payment is made. GST is defined in section 195-1 of the A New Tax System (Goods and Services Tax) Act 1999.

6              Purpose for which amounts may be debited

         (1)   For paragraph 20 (1) (c) of the FMA Act, any amount required or permitted to be paid in relation to activities that are approved by the Minister for the Arts and are joint arrangements with one or more State and Territory governments may be debited from the Cultural Special Account.

         (2)   The purpose mentioned in subsection (1) includes:

                (a) reducing the balance of the Cultural Special Account without making a real or notional payment; and

                (b) payments for incidental activities, including the administration of the Special Account and dealing with direct and indirect costs.

Note 1    Subsection 20 (4) of the FMA Act appropriates the Consolidated Revenue Fund (CRF) for expenditure for the purposes of the Special Account up to the balance for the time being of the Special Account.  Subsection 20 (5) of the FMA Act provides that whenever an amount is debited against the appropriation, the amount is taken to be also debited from the Special Account.

Note 2    In addition to the purposes specified in this Determination, other provisions of the FMA Act provide authority for amounts to be debited from this Special Account.


                Subsection 39 (1) of the FMA Act provides the Finance Minister with the power to invest public money in any authorised investment. Where such an investment is made of an amount standing to the credit of a Special Account, section 39 of the FMA Act has the effect that the Special Account must be debited.

                Subsection 39 (4) of the FMA Act provides that if an amount has been invested by debiting a Special Account, then the expenses of the investment may be debited from the Account.

                Subsection 39 (9) of the FMA Act appropriates the CRF for this investment activity.

                Not all chief executives have been delegated powers to invest under section 39 of the FMA Act.

Note 3    An amount may be debited from a Special Account where:

(a)       it has been incorrectly credited by virtue of a clerical mistake; or

(b)       it has been credited through the exercise of a discretion by an official and the exercise of that discretion was actuated by a fundamental mistake of fact or law.

                Legal advice should be obtained before an amount is debited on the basis of paragraph (b).

Note 4    Section 6 of the FMA Act applies to a notional payment by an Agency (or part of an Agency) as if it were a real payment by the Commonwealth. Notional receipts and notional payments are transactions between different parts of the Commonwealth.  Real receipts and real payments are transactions between the Commonwealth and other entities.

Note 5    The purpose of subclause (2) is to allow for the extinguishing of all or part of the appropriation under section 20 of the FMA Act for this Special Account. When this Special Account is debited for this purpose, there is no payment or credit available to another party, account or appropriation.


Note

1.       All legislative instruments and compilations are registered on the Federal Register of Legislative Instruments kept under the Legislative Instruments Act 2003. See http://www.frli.gov.au.