Commonwealth Numbered Regulations - Explanatory Statements

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FINANCIAL MANAGEMENT AND ACCOUNTABILITY AMENDMENT REGULATION 2012 (NO. 7) (SLI NO 229 OF 2012)

EXPLANATORY STATEMENT

Select Legislative Instrument 2012 No. 229

Subject -  Financial Management and Accountability Act 1997

Financial Management and Accountability Amendment Regulation 2012 (No. 7)

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 Regulation amends the Financial Management and Accountability Regulations 1997 (the Principal Regulations) to add one new Government program to Part 4 of Schedule 1AA to ensure that there is legislative authority for this spending activities under this program.

To respond to the High Court decision in Williams v Commonwealth [2012] HCA 23, the Financial Framework Legislation Amendment Act (No. 3) 2012 established legislative authority in section 32B of the FMA Act for the Government to spend on the grants and programs listed in Schedule 1AA of the Principal Regulations.

Further details on the Regulation are set out in the Attachment.

The FMA Act specifies that no conditions need to be met before the power to make the Regulation may be exercised. 

The Regulation is a legislative instrument for the purposes of the Legislative Instruments Act 2003. The Regulation commences on the day after the Regulation is registered on the Federal Register of Legislative Instruments.

Consultation

In accordance with section 17 of the Legislative Instruments Act 2003, consultation has taken place with the relevant division of the Department of Finance and Deregulation.  The Australian Government Solicitor also provided advice on the amendment to Schedule 1AA in the Principal Regulations.

A regulation impact statement is not required as the Regulation only applies to FMA Act Agencies, and does not affect the private sector.

Statement of Compatibility with Human Rights

The Regulation is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011 (Human Rights Act). 

The amendments do not engage any of the rights or freedoms outlined in the Human Rights Act, such as encompassed in the International Covenant on Civil and Political Rights (ICCPR).  The amendments do not limit any human rights, nor establish any new offences or penalties.

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

ATTACHMENT

Details of the Financial Management and Accountability Amendment Regulations 2012 (No. 7)

Section 1 - Name of Regulation

This section provides that the title of the Regulation will be the Financial Management and Accountability Amendment Regulation 2012 (No. 7), as made under section 65 of the Financial Management and Accountability Act 1997.

Section 2 - Commencement

This section provides that the Regulation commences on the day after it is registered on the Federal Register of Legislative Instruments.

Section 3 - Amendment of the Financial Management and Accountability Regulations 1997

This section provides that the Financial Management and Accountability Regulations 1997 (Principal Regulations) would be amended as set out in Schedule 1.

Schedule 1 - Amendments

Schedule 1 amended the Principal Regulations to amend Schedule 1AA to ensure there is legislative authority for a Government spending activity by adding one new program to Part 4. 

Item [1] - Schedule 1AA, item 411.003

This item added a new program for the Department of Finance and Deregulation, "Divestment of Commonwealth property - financial assistance", to Schedule 1AA of the Principal Regulations (proposed new item 411.003), to ensure that there is legislative authority to support payments to assist persons acquiring Commonwealth property.  Under this program, financial assistance may be provided to help a purchaser to acquire, manage and maintain a heritage property that has previously been owned by the Commonwealth, such as at Mylilly Point in the Northern Territory.

The Divestment of Commonwealth property - financial assistance is part of the program referred to on page 42 of the Portfolio Budget Statements 2012-13, Budget Related Paper No.1.8 Finance and Deregulation Portfolio.

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