Australian Capital Territory Bills
[Index]
[Search]
[Download]
[Related Items]
[Help]
This is a Bill, not an Act. For current law, see the Acts databases.
FINANCIAL LEGISLATION (INTEGRITY AND RESPONSIBILITY) AMENDMENT BILL 2002
2002
THE LEGISLATIVE ASSEMBLY
FOR THE AUSTRALIAN CAPITAL
TERRITORY
(As presented)
(Mr Gary Humphries)
Financial
Legislation (Integrity and Responsibility) Amendment Bill
2002
Contents
Page
2002
THE LEGISLATIVE ASSEMBLY
FOR THE AUSTRALIAN CAPITAL
TERRITORY
(As presented)
(Mr Gary Humphries)
Financial Legislation
(Integrity and Responsibility) Amendment Bill 2002
A Bill for
An Act to amend the
Financial Management Act
1996 and the
Annual Reports (Government Agencies) Act
1995
The Legislative Assembly for the Australian Capital Territory enacts as
follows:
This Act is the Financial Legislation (Integrity and Responsibility)
Amendment Act 2002.
This Act commences on 1 July 2003.
Note The naming and commencement provisions automatically commence
on the notification day (see Legislation Act, s 75 (1)).
Part
2 Financial Management
Act 1996
This part amends the Financial Management Act 1996.
insert
Part 1A Principles of sound financial
management
4A Government to operate in accordance with sound
financial management principles
(1) The government must establish and maintain a budgeting and reporting
framework that is consistent with the principles of sound financial management
to form a basis for the provision of sustainable social and economic services
and infrastructure fairly to all ACT residents.
(2) The principles of sound financial management are that the government
must—
(a) manage financial risks faced by the Territory prudently, having regard
to economic circumstances; and
(b) pursue spending and taxing policies that are consistent with a
reasonable degree of stability and predictability in the level of the tax
burden; and
(c) maintain the integrity of the Territory’s tax system;
and
(d) ensure that it takes into account the financial impact on future
generations when making its policy decisions; and
(e) give full, accurate and timely disclosure of financial information
relating to the activities of the government and its agencies.
(3) In this section:
financial risks include the following:
(a) risks arising from the level of the Territory’s general
government sector debt;
(b) commercial risks arising from ownership of corporations and public
enterprises;
(c) risks arising from changes in the structure of the Territory’s
tax base;
(d) risks arising from management of the Territory’s assets and
liabilities.
5 New
sections 9C, 9D and 9E
insert
9C Financial policy objectives and strategies
statement
(1) The Treasurer must prepare 2 financial policy objectives and
strategies statements for each financial year.
(2) The 1st statement must be for the Territory budget for the financial
year.
(3) The 1st statement must be presented to the Legislative Assembly with
the proposed budgets and consolidated financial management statements mentioned
in section 10 for the financial year.
(4) The 2nd statement must be for the budget update for the financial
year.
(5) The 2nd statement must be presented to the Legislative Assembly with
the budget update for the financial year.
9D Purpose of financial policy objectives and
strategies statement
The purpose of a financial policy objectives and strategies statement is to
make transparent the government’s financial strategies and to establish a
benchmark for evaluating the government’s conduct of financial
policy.
9E Contents of financial policy objectives and
strategies statement
(1) A financial policy objectives and strategies statement must be based
on the principles of responsible fiscal management.
(2) The financial policy objectives and strategies statement for the
Territory budget or budget update for a financial year must—
(a) state the government’s long-term financial objectives within
which financial policy for the financial year and the following 3 financial
years will be framed; and
(b) explain the broad strategic priorities on which the budget or budget
update is based; and
(c) state the key financial measures that the government has identified as
being important and against which financial policy will be set and assessed;
and
(d) state, for the financial year and the following 3 financial
years—
(i) the government’s short-term financial objectives; and
(ii) the targets for each stated key financial measure; and
(e) explain how the financial objectives and strategic priorities
mentioned in paragraphs (a), (b) and (d) relate to the principles of responsible
fiscal management; and
(f) state any financial policy actions taken or to be taken that are
temporary in nature, the reasons for taking them and indicate the process for
their revision; and
(g) identify the reporting basis on which subsequent financial reports
will be prepared; and
(h) state the reasons for any changes from the previous financial policy
objectives and strategies statement.
(3) However, if particular information required to be included in the
financial policy objectives and strategies statement is unchanged from
information set out in full in an earlier statement, the statement may instead
summarise the information and state that it is unchanged from that set out in
the earlier statement.
(4) In this section:
principles of responsible fiscal management—see section
11 (5).
6 Territory
budgetsNew section
11 (3A)
insert
(3A) A proposed budget must also include—
(a) a statement of the economic or other assumptions used to make the
budget estimates; and
(b) a statement about the sensitivity of the budget estimates to changes
in the economic or other assumptions; and
(c) a statement of the risks, quantified if possible, that may affect the
budget estimates.
7 New
section 11 (5) (aa) to (ac)
before paragraph (a), insert
(aa) pursuing spending and taxing policies that are consistent with a
reasonable degree of stability and predictability in the level of the tax
burden; and
(ab) maintaining the integrity of the Territory’s tax system;
and
(ac) ensuring the financial impact on future generations is taken into
account when making policy decisions; and
renumber subsections and paragraphs when Act next republished under
Legislation Act 2001
9 New
sections 13A to 13C
insert
13A Budget update
(1) The Treasurer must prepare a budget update for each financial
year.
(2) The Treasurer must present the budget update for a financial year to
the Legislative Assembly on the 1st sitting day in the 2nd half of the financial
year.
Example
For the 2003-4 financial year, the 1st sitting day in calendar year 2004
(the 2nd half of the 2003-4 financial year) is 3 February 2004. That is the day
the budget update for the 2003-4 financial year must be presented.
Note An example is part of the Act, is not exhaustive and may
extend, but does not limit, the meaning of the provision in which it appears
(see Legislation Act, s 126 and s 132).
13B Purpose of budget update
The purpose of the budget update for a financial year is to give updated
information to allow the assessment of the government’s financial
performance against the financial policy objectives and strategies set out in
the financial policy objectives and strategies statement for the Territory
budget for the financial year.
13C Contents of budget update
(1) The budget update for a financial year must be based on the financial
policy objectives and strategies statement for the Territory budget for the
financial year and generally accepted accounting practice.
(2) The budget update for a financial year must—
(a) include updated financial statements mentioned in section 11 (1)
for the financial year; and
(b) include updated budget estimates mentioned in section 11 (3) for
each of the next 3 financial years; and
(c) take into account government decisions and other circumstances that
may have material effect on the financial statements and budget estimates;
and
(d) state the date as at when the updating was done.
(3) However, if particular information required to be included in the
budget update is unchanged from information set out in full in the financial
statements or budget estimates for the financial year, the update may instead
summarise the information and state that it is unchanged from that set out in
the financial statements or budget estimates.
10 New
sections 19F and 19G
insert
19F Intergenerational report
(1) The Treasurer must prepare intergenerational reports.
(2) The Treasurer must present an intergenerational report to the
Legislative Assembly with the Territory budget for every 5th financial
year.
(3) An intergenerational report is a notifiable instrument.
Note A notifiable instrument must be notified under the Legislation
Act.
(4) The Treasurer must present the 1st intergenerational report to the
Legislative Assembly with the Territory budget for the financial year beginning
on 1 July 2004.
(5) Subsection (4) and this subsection expire on 31 July 2004.
19G Contents of intergenerational
report
An intergenerational report must assess the long-term sustainability of
current government policies over the next 30 years, including by taking account
of the financial implications of demographic change.
insert
Part 2A Pre-election budget
update
20A Pre-election budget update
(1) At least 48 days before the polling day for an ordinary election, the
chief executive must prepare, and give to the parliamentary counsel for
notification, a pre-election budget update.
(2) At least 20 days before the polling day for an election mentioned in
the Australian Capital Territory (Self-Government) Act 1988 (Cwlth),
section 16 (Dissolution of Assembly by Governor-General) or section 48
(Resolution of no confidence in Chief Minister), the chief executive must
prepare, and give to the parliamentary counsel for notification, a pre-election
budget update.
(3) A pre-election budget update is a notifiable instrument.
Note A notifiable instrument must be notified under the Legislation
Act.
(4) In this section:
ordinary election—see the Electoral Act 1992,
dictionary.
polling day—see the Electoral Act 1992,
dictionary.
20B Purpose of pre-election budget
update
The purpose of a pre-election budget update for an election
is—
(a) to allow the assessment of the government’s financial
performance against the financial policy objectives and strategies set out in
the current financial policy objectives and strategies statement; and
(b) to give the electorate an accurate picture of the Territory’s
financial position before the election.
20C Contents of pre-election budget
update
(1) A pre-election budget update must be based on the current financial
policy objectives and strategies statement and generally accepted accounting
practice.
(2) A pre-election budget update for an election must
include—
(a) updated financial statements mentioned in section 11 (1) for the
financial year in which the election is to be held; and
(b) updated budget estimates mentioned in section 11 (3) for each of the
next 3 financial years; and
(c) a statement of the economic or other assumptions used in preparing the
updated financial statements and budget estimates; and
(d) a statement about the sensitivity of the updated financial statements
and budget estimates to changes in the economic or other assumptions;
and
(e) a statement of the risks, quantified if possible, that may affect the
economic or other assumptions, including—
(i) contingent liabilities; and
(ii) publicly announced government commitments that are not yet included
in the updated financial statements and budget estimates.
(3) Information in the pre-election budget update must—
(a) take into account government decisions and other circumstances that
may have material effect on the financial statements and budget estimates;
and
(b) state the date as at when the updating was done.
(4) However, if particular information required to be included in the
pre-election budget update is unchanged from information set out in full in the
latest financial statements or budget estimates mentioned in section 11 or
budget update, the pre-election budget update may instead summarise the
information and state that it is unchanged from that set out in the financial
statements, budget estimates or budget update.
12 Annual
financial statements of departmentsNew
section 27 (3) (ab)
insert
(ab) a statement of the amount by which the total estimated expenditure
for the department for the year (contained in the budget estimates for the year)
exceeded or was less than the total actual expenditure of the department for the
year; and
renumber paragraphs when Act next republished under Legislation Act
2001
omit
subsections (2) and (4)
substitute
subsections (2), (3) (ab) and (4)
15 Quarterly
departmental performance reportsSection 30A
(1), new note
insert
Note A report under the Annual Reports (Government Agencies) Act
1995, section 7A (Other reports) may be included in a quarterly departmental
performance report.
16 Annual
financial statementsNew section 59 (3)
(ab)
insert
(ab) a statement of the amount by which the total estimated expenditure
for the authority for the year (contained in the statement of intent for the
year provided by the authority under section 58) exceeded or was less than the
total actual expenditure of the authority for the year; and
renumber paragraphs when Act next republished under Legislation Act
2001
Part
3 Annual Reports (Government Agencies)
Act 1995
This part amends the Annual Reports (Government Agencies) Act
1995.
substitute
1 Name of Act
This Act is the Government Agencies Reports Act 1995.
insert
7A Other reports
(1) The responsible Minister for an administrative unit may, in writing,
direct the chief executive of the unit to give the Minister a report about any
matter relating to the unit’s operations in a quarter.
(2) If the responsible Minister for the administrative unit is required by
a resolution of the Legislative Assembly to present a report to the Assembly
about a matter relating to the unit’s operations, the Minister must give a
direction about the matter under subsection (1).
(3) A direction mentioned in subsection (2) must set out the Legislative
Assembly’s resolution.
(4) A direction under this section is a notifiable instrument.
Note A notifiable instrument must be notified under the Legislation
Act.
(5) The chief executive of the administrative unit must prepare the
report, and give it to the responsible Minister—
(a) if the direction is given during the quarter to which it
relates—within 30 days after the day the quarter ends; or
(b) if the direction is given after the quarter to which it
relates—within 30 days after the day the direction is given.
(6) The responsible Minister must present the report to the Legislative
Assembly on the first sitting day after the day the Minister is given the
report.
(7) If, in the Treasurer’s opinion, a report under this section can
conveniently be incorporated into a quarterly departmental performance report
under the Financial Management Act 1996, section 30A, the report may be
incorporated in that report.
21 Reporting
period other than financial year—public
authoritiesNew section 10 (1A) and
(1B)
insert
(1A) If the Minister is required by a resolution of the Legislative
Assembly to present a report mentioned in subsection (1) to the Assembly, the
Minister must give a direction under subsection (1) requiring presentation of
the report.
(1B) A direction mentioned in subsection (1A) must set out the Legislative
Assembly’s resolution.
renumber subsections when Act next republished under Legislation Act
2001
insert
17 References to Annual Reports (Government Agencies)
Act 1995
(1) In any Act, statutory instrument or document, a reference to the
Annual Reports (Government Agencies) Act 1995 is a reference to this
Act.
(2) In any Act, statutory instrument or document, a reference to a
particular provision of the Annual Reports (Government Agencies) Act 1995
is a reference to the corresponding provision of this Act.
(3) This section expires on 1 July 2004.
(4) This section is a law to which the Legislation Act 2001,
section 88 (Repeal does not end transitional or validating effect etc)
applies.
substitute
An Act about reports of certain government agencies
Endnote
Republications of amended laws
For the latest republication of amended laws, see
www.legislation.act.gov.au.
© Australian Capital Territory
2002
[Index]
[Search]
[Download]
[Related Items]
[Help]