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This is a Bill, not an Act. For current law, see the Acts databases.
1996
The Parliament of
the
Commonwealth of
Australia
HOUSE OF
REPRESENTATIVES
Presented and read a first
time
Financial Management
and Accountability Bill 1996
No. ,
1996
(Finance)
A Bill for
an Act to provide for the proper use and management of public money, public
property and other Commonwealth resources, and for related
purposes
9620720—975/9.12.1996—(207/96) Cat.
No. 96 5687 1 ISBN 0644 483628
This Guide aims to give you a general overview of the matters covered by
this Act. It also gives you some information about the way this Act is
organised.
The main purpose of this Act is to provide a framework for the proper
management of public money and public property. Public money and
public property are defined in section 5. Broadly, those terms
refer to money or property that is owned or held by the Commonwealth, including
money or property held on trust.
This Act establishes an accounting system for public money that is based
on the Consolidated Revenue Fund and 3 other funds established by this Act. The
diagram in Appendix A illustrates the accounting system.
The Act also has rules about how public money and property are to be
dealt with. Many of the detailed rules are in Finance Minister’s Orders
made under section 63 and regulations made under section 65.
Many of the rules in this Act apply to officials of Agencies and to Chief
Executives of Agencies. Agency, official and
Chief Executive are defined in section 5.
Part 1 Preliminary: This Part deals with the commencement of
this Act, its application to things outside Australia and its application to the
Crown.
Part 2 General provisions about definitions and offences:
This Part contains definitions of terms that are frequently used throughout this
Act and general provisions about offences.
Part 3 Collection, custody etc. of public money: This Part
deals with the collection and custody of public money. It deals with matters
such as banking and liability for loss of public money.
Part 4 Fund accounting, appropriations and payments: This
Part establishes an accounting system for public money that involves the
Consolidated Revenue Fund and the following funds established by this Act: a
Loan Fund, a Reserved Money Fund and a Commercial Activities Fund. This Part has
a number of rules that apply to Parliamentary appropriations. It also deals with
miscellaneous matters such as act of grace payments by the Commonwealth and
waiver of debts owing to the Commonwealth.
Part 5 Borrowing and investment: This Part gives the Finance
Minister limited powers to borrow money on behalf of the Commonwealth. It also
deals with the investment of public money.
Part 6 Control and management of public property: This Part
has rules about the control and management of public property. It deals with
matters such as misapplication of public property and liability for loss of
public property.
Part 7 Special responsibilities of Chief Executives: The
rules in this Part apply to Chief Executives of Agencies. The rules deal
generally with the control and management of public money and public property
for which Chief Executives have a management responsibility.
Part 8 Reporting and audit: This Part deals with the
preparation and audit of financial statements of transactions of the Funds. It
also deals with the audit of annual financial statements of Agencies.
Part 9 Miscellaneous: This Part deals with miscellaneous
matters such as Finance Minister’s Orders, regulations and
delegations.
The following Acts are directly relevant to the operation or
interpretation of this Act:
The Auditor-General Act 1996 establishes the office of
Auditor-General and sets out the functions of the Auditor-General. It also
provides for the appointment of an Independent Auditor to audit the Australian
National Audit Office.
The Acts Interpretation Act 1901 contains many general rules about
the meaning or effect of many terms and provisions that are commonly used in
Commonwealth Acts.
This list is not exhaustive. Acts other than those listed above might
also affect the operation or interpretation of this Act.
Another related Act is the Commonwealth Authorities and Companies Act
1996. It contains reporting rules, accountability rules and other rules that
apply to Commonwealth authorities and Commonwealth companies.
Contents
A Bill for an Act to provide for the proper use and
management of public money, public property and other Commonwealth resources,
and for related purposes
The Parliament of Australia enacts:
This Act may be cited as the Financial Management and Accountability
Act 1996.
(1) Subject to subsection (2), this Act commences on a day to be fixed by
Proclamation.
(2) If this Act does not commence under subsection (1) by 1 July in
the next calendar year after the calendar year in which this Act receives the
Royal Assent, it commences on that 1 July.
This Act binds the Crown in right of the Commonwealth, but does not make
the Crown liable to be prosecuted for an offence.
This Act extends to acts, omissions, matters and things outside Australia
(unless the contrary intention appears).
In this Act, unless the contrary intention appears:
Agency means:
(a) a Department of State:
(i) including persons who are allocated to the Department (for the
purposes of this Act) by regulations made for the purposes of this paragraph;
but
(ii) not including any part of the Department that is a prescribed
Agency;
(b) a Department of the Parliament, including persons who are allocated to
the Department (for the purposes of this Act) by regulations made for the
purposes of this paragraph;
(c) a prescribed Agency.
appropriation means an authority under this Act or any other
law to debit an amount from a particular Fund, whether or not the law concerned
uses the word “appropriation” or
“appropriated”.
bank means a person who carries on the business of banking,
either in Australia or outside Australia.
Chief Executive means:
(a) for a prescribed Agency—the person identified by the regulations
as the Chief Executive of the Agency; or
(b) for any other Agency—the person who is the Secretary of the
Agency for the purposes of the Public Service Act 1922.
Commercial Activities Fund means the fund established by
section 21.
Consolidated Revenue Fund means the Consolidated Revenue Fund
referred to in section 81 of the Constitution.
Drawn Money has the meaning given by section 17.
Finance Minister means the Minister who administers this
Act.
Finance Minister’s Orders means Orders made under
section 63.
Fund means:
(a) the Consolidated Revenue Fund;
(b) the Loan Fund;
(c) the Commercial Activities Fund;
(d) the Reserved Money Fund.
Loan Fund means the fund established by section 19.
Minister includes a Presiding Officer.
official means a person who is in an Agency or is part of an
Agency.
official account means a bank account referred to in section
9.
prescribed Agency means a body, organisation or group of
persons prescribed by the regulations for the purposes of this
definition.
Presiding Officer means the President of the Senate or the
Speaker of the House of Representatives.
public money means:
(a) money in the custody or under the control of the Commonwealth;
or
(b) money in the custody or under the control of any person acting for or
on behalf of the Commonwealth in respect of the custody or control of the
money;
including such money that is held on trust for, or otherwise for the
benefit of, a person other than the Commonwealth.
public property means:
(a) property in the custody or under the control of the Commonwealth;
or
(b) property in the custody or under the control of any person acting for
or on behalf of the Commonwealth in respect of the custody or control of the
property;
including such property that is held on trust for, or otherwise for the
benefit of, a person other than the Commonwealth.
Received Money has the meaning given by section 17.
Reserved Money Fund means the fund established by
section 20.
Special Instruction means an instruction by the Finance
Minister under section 16.
special public money has the meaning given by section
16.
(1) This Act applies to a notional payment by an Agency (or part of an
Agency) as if it were a real payment by the Commonwealth.
(2) This Act applies to a notional receipt by an Agency (or part of an
Agency) of such a notional payment as if it were a real receipt by the
Commonwealth.
Note: This section applies to transactions that do not
actually involve payments or receipts, because both parties to the transaction
are merely acting as agents for the Commonwealth. For example, Agency 1 pays
Agency 2 for services provided by Agency 2 to Agency 1. The effect of this
section is that the payment by Agency 1 can be regarded as authorised by an
appropriation for Agency 1, while the receipt by Agency 2 must be credited to
the Consolidated Revenue Fund.
(1) Chapter 2 of the Criminal Code applies to all offences
against this Act.
(2) A maximum penalty that is specified:
(a) at the foot of a section of this Act (other than a section that is
divided into subsections); or
(b) at the foot of a subsection of this Act;
indicates that a person who contravenes the section or subsection is guilty
of an offence against the section or subsection that is punishable, on
conviction, by a penalty up to that maximum.
Note 1: Chapter 2 of the Criminal Code sets out the
general principles of criminal responsibility.
Note 2: If the specified penalty is imprisonment only,
section 4B of the Crimes Act 1914 allows the court to impose a fine
instead of imprisonment or in addition to imprisonment.
(1) The Finance Minister may, on behalf of the Commonwealth, enter into an
agreement with any bank:
(a) for the receipt, custody, payment or transmission of public money,
either inside or outside Australia; or
(b) for any other matter relating to the conduct of the banking business
of the Commonwealth.
(2) An agreement under this section may provide for the payment of
interest and other charges by the Commonwealth.
(3) An agreement under this section may not provide for overdraft drawings
by the Commonwealth unless it provides for each drawing to be repaid within 30
days.
Note: An overdraft drawing consists of the bank meeting the
payment of a cheque, or making an “electronic payment” to another
account, and in each case debiting the payment against an account that has an
insufficient balance. Section 38 deals with overdrafts that arise in respect of
advances that are paid to the Commonwealth.
(4) An agreement for an overdraft on an official account must not be made
except under this section.
(5) An agreement under this section may not be made for a period of more
than one year unless the agreement can be terminated by the Commonwealth at any
time after giving notice of not more than 6 months.
(1) The Finance Minister may open and maintain bank accounts in accordance
with agreements under section 8, and must open and maintain at least one such
bank account.
(2) A bank account must have a name that includes the word
“Official”.
(3) An account for the receipt, custody, payment or transmission of public
money must not be opened except in accordance with this section.
An official or Minister who receives public money (including money that
becomes public money upon receipt) must bank it as required by the Finance
Minister’s Orders or otherwise deal with it as required by the Finance
Minister’s Orders. For this purpose, money includes cheques
and similar instruments.
Maximum penalty: Imprisonment for 2 years.
Note: Chapter 2 of the Criminal Code sets out the
general principles of criminal responsibility.
An official or Minister must not deposit public money in any account
other than an official account. For this purpose, money includes
cheques and similar instruments.
Maximum penalty: Imprisonment for 7 years.
Note: Chapter 2 of the Criminal Code sets out the
general principles of criminal responsibility.
An official or Minister must not enter into an agreement or arrangement
for the receipt or custody of public money by an outsider unless:
(a) the Finance Minister has first given a written authorisation for the
arrangement; or
(b) the arrangement is expressly authorised by this Act or by another
Act.
For this purpose, outsider means any person other than the
Commonwealth, an official or a Minister.
Maximum penalty: Imprisonment for 7 years.
Note: Chapter 2 of the Criminal Code sets out the
general principles of criminal responsibility.
An official must not withdraw money from an official account except as
authorised by the Finance Minister’s Orders.
Maximum penalty: Imprisonment for 2 years.
Note: Chapter 2 of the Criminal Code sets out the
general principles of criminal responsibility.
An official or Minister must not misapply public money or improperly
dispose of, or improperly use, public money.
Maximum penalty: Imprisonment for 7 years.
Note: Chapter 2 of the Criminal Code sets out the
general principles of criminal responsibility.
(1) If:
(a) a loss of public money occurs; and
(b) at the time of the loss, an official or Minister had nominal custody
of the money as described in subsection (2);
the official or Minister is liable to pay to the Commonwealth an amount
equal to the loss. However, it is a defence if the person proves that he or she
took reasonable steps in all the circumstances to prevent the loss.
(2) A person has nominal custody of public money if:
(a) the person holds the money by way of a petty cash advance,
“change float” or other advance; or
(b) the person has received the money, but has not yet dealt with it as
required by section 10.
(3) If:
(a) a loss of public money occurs; and
(b) an official or Minister caused or contributed to the loss by
misconduct, or by a deliberate or serious disregard of reasonable standards of
care;
the official or Minister is liable to pay to the Commonwealth an amount
equal to the loss. However, if the person’s misconduct or disregard was
not the sole cause of the loss, the person is liable to pay only so much of the
loss as is just and equitable having regard to the person’s share of the
responsibility for the loss.
(4) A person’s liability under this section that arises when the
person is an official or Minister is not avoided merely because the person
ceases to be an official or Minister.
(5) An amount payable to the Commonwealth under this section is
recoverable as a debt in a court of competent jurisdiction.
(6) The Commonwealth is not entitled to recover amounts from the same
person under both subsections (1) and (3) for the same loss.
(7) In this section:
loss includes a deficiency.
(1) The Finance Minister may issue Special Instructions in writing about
special public money, including instructions about:
(a) the custody of special public money;
(b) the investment of special public money;
(c) the application of interest or other amounts derived from the
investment of special public money;
(d) the application of special public money in paying the expenses
involved in dealing with special public money.
(2) In case of inconsistency, Special Instructions override this Act, the
regulations and the Finance Minister’s Orders. However, Special
Instructions cannot be inconsistent with the terms of any trust that applies to
the money concerned.
(3) An official or Minister must not contravene any Special
Instruction.
Maximum penalty: Imprisonment for 2 years.
Note: Chapter 2 of the Criminal Code sets out the
general principles of criminal responsibility.
(4) In this section:
special public money means public money that is not held on
account of the Commonwealth or for the use or benefit of the
Commonwealth.
Note: Money held by the Commonwealth on trust for another
person is an example of special public money.
(1) All public money falls into one of the following classes:
(a) Received Money;
(b) money in the Consolidated Revenue Fund;
(c) money in the Loan Fund established by section 19;
(d) money in the Reserved Money Fund established by
section 20;
(e) money in the Commercial Activities Fund established by
section 21;
(f) Drawn Money;
(g) special public money that is subject to a Special
Instruction.
Note: The diagram in Appendix A illustrates the Fund
accounting system.
(2) All public money is Received Money from the time it
becomes public money until the time it is either credited to the Consolidated
Revenue Fund or becomes subject to a Special Instruction.
(3) Drawn Money is public money that has been debited from a
Fund without being credited to another Fund. It does not include money that is
subject to a Special Instruction.
Note: Examples of Drawn Money are petty cash
advances and amounts held in drawing accounts to meet the payment of
cheques.
(4) In this section:
public money does not include overdraft drawings under an
agreement under section 8.
(1) All public money must be credited to the Consolidated Revenue Fund as
soon as practicable after it becomes public money. This requirement does not
apply to public money that is subject to a Special Instruction.
(2) In this section:
public money does not include overdraft drawings under an
agreement under section 8.
(1) A fund called the Loan Fund is hereby established.
(2) The Finance Minister, if satisfied that particular money in the
Consolidated Revenue Fund is borrowed money, must direct that the money be
transferred from the Consolidated Revenue Fund to the Loan Fund. This
requirement does not apply to credit card cash advances.
(3) The Consolidated Revenue Fund is appropriated for the purposes of
subsection (2).
(4) If another Act (either expressly or by implication) requires or
permits an amount to be transferred from the Consolidated Revenue Fund to the
Loan Fund, then the Consolidated Revenue Fund is appropriated for the transfer
by force of this subsection (unless the contrary intention appears in that other
Act).
(1) A fund called the Reserved Money Fund is hereby established.
(2) The Finance Minister may make a written determination that:
(a) establishes a component of the Reserved Money Fund;
(b) allows or requires amounts to be transferred from the Consolidated
Revenue Fund or Loan Fund to that component;
(c) allows or requires amounts to be debited from that component for
specified purposes.
(3) The Finance Minister may make a determination that revokes or varies a
determination made under subsection (2).
(4) The Finance Minister may at any time make a determination that
abolishes a component established under subsection (2). Any amount in the
component at the time of abolition must be transferred to the Consolidated
Revenue Fund.
(5) If another Act establishes a component of the Reserved Money Fund and
identifies the purposes of the component, the component may be debited for those
purposes.
(6) The Funds are appropriated as necessary for the purposes of this
section.
(7) If another Act (either expressly or by implication) requires or
permits an amount to be transferred from the Consolidated Revenue Fund to a
component of the Reserved Money Fund, then the Consolidated Revenue Fund is
appropriated for the transfer by force of this subsection (unless the contrary
intention appears in that other Act).
Note: Determinations made under subsections (2) and (3) of
this section are subject to the commencement and disallowance rules in section
22.
(1) A fund called the Commercial Activities Fund is hereby
established.
(2) The Finance Minister may make a written determination that:
(a) establishes a component of the Commercial Activities Fund for an
activity of an Agency that the Finance Minister considers should be accounted
for as if it were a commercial activity;
(b) allows amounts that are derived directly or indirectly from the
activity to be transferred from the Consolidated Revenue Fund or Loan Fund to
that component;
(c) allows amounts to be debited from that component for specified
purposes connected with the activity.
(3) The Finance Minister may make a determination that revokes or varies a
determination made under subsection (2).
(4) The Finance Minister may at any time make a determination that
abolishes a component of the Commercial Activities Fund. Any amount in the
component at the time of abolition must be transferred to the Consolidated
Revenue Fund.
(5) The Funds are appropriated as necessary for the purposes of this
section.
Note: Determinations made under subsections (2) and (3) of
this section are subject to the commencement and disallowance rules in section
22.
(1) This section applies to a determination made by the Finance Minister
under subsection 20(2) or (3) or 21(2) or (3).
(2) The Finance Minister must cause a copy of the determination to be
tabled in each House of the Parliament.
(3) Either House may, following a motion upon notice, pass a resolution
disallowing the determination. To be effective, the resolution must be passed
within 5 sitting days of the House after the copy of the determination was
tabled in the House.
(4) 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.
(1) If a receipt has been reduced by a lawful set-off, a credit to a Fund
for the receipt must nevertheless show the full amount of the receipt, unreduced
by the set-off.
(2) If a payment has been reduced by a lawful set-off, a debit from a Fund
for the payment must nevertheless show the full amount of the payment, unreduced
by the set-off.
(3) In this section:
reduced includes reduced to nil.
The Finance Minister must cause proper accounts and records to be kept of
the transactions of the Funds.
(1) In any Act or any instrument made under an Act:
(a) a reference to paying an amount into a Fund is a reference to
crediting the amount to that Fund;
(b) a reference to paying an amount out of a Fund is a reference to
debiting the amount from the Fund.
(2) In this section:
Fund means:
(a) the Consolidated Revenue Fund, the Loan Fund, the Reserved Money Fund
or the Commercial Activities Fund; or
(b) a component of the Reserved Money Fund or of the Commercial Activities
Fund.
An official or Minister must not do any of the following except as
authorised by a valid drawing right:
(a) make a payment of public money;
(b) request that an amount be debited from a Fund;
(c) debit an amount from a Fund.
Maximum penalty: Imprisonment for 2 years.
Note: Chapter 2 of the Criminal Code sets out the
general principles of criminal responsibility.
(1) The Finance Minister may issue a drawing right to an official or
Minister that authorises the official or Minister to do one or more of the
following:
(a) make a payment of public money for a specified purpose;
(b) request the debiting of an amount from a Fund against a particular
appropriation;
(c) debit an amount from a Fund against a particular
appropriation.
(2) If a law requires an amount to be debited from a Fund:
(a) the Finance Minister must issue sufficient drawing rights to allow the
full amount to be debited from the Fund; and
(b) the recipient of any of those drawing rights must exercise the right
in full.
(3) If a law permits an amount to be debited from a Fund, but does not
require the amount to be debited, there is no obligation to issue or exercise
drawing rights for that amount.
(4) The Finance Minister may at any time revoke or amend a drawing
right.
(5) A drawing right has no effect to the extent that it claims to
authorise the application of public money in a way that is not authorised by an
appropriation.
(1) This section applies if:
(a) an Act or other law requires or permits the repayment of an amount
received by the Commonwealth; and
(b) apart from this section there is no appropriation of any Fund for the
repayment.
Note: For example, this section would apply to a law that
requires an application fee to be refunded to an unsuccessful applicant. It
would also apply to a contractual obligation to repay a loan.
(2) If the amount received by the Commonwealth:
(a) has been credited to the Consolidated Revenue Fund; and
(b) then transferred from the Consolidated Revenue Fund to another Fund or
a component of another Fund;
then the Fund or component to which the amount was transferred is
appropriated for the repayment.
(3) In all other cases, the Consolidated Revenue Fund is appropriated for
the repayment.
(1) This section applies to money that:
(a) was debited from a Fund, or a component of a Fund, under an
appropriation that authorised the debiting of an amount from the Fund or
component before a particular time (the lapsing time);
and
(b) is Drawn Money at the lapsing time, but is not held in an official
account to meet the payment of cheques that have already been issued;
and
(c) is not excepted from the operation of this section by regulations made
for the purposes of this section.
(2) After the lapsing time, the money is no longer covered by the
appropriation, and must be dealt with as if it had become Received Money at the
lapsing time.
If an amount is re-credited to a Fund after having been debited from that
Fund under the authority of an appropriation, then the appropriation has effect
as if the amount had not been debited.
Note: The amount re-credited to the Fund will be available
to be debited again, subject to any time limits that apply to the appropriation.
In the case of an annual appropriation that authorised debits to the Fund during
a financial year, the re-credited amount would not be available after the end of
the financial year.
(1) The Finance Minister may enter into agreements for the purposes of
items in Appropriation Acts that are marked “net
appropriation”.
(2) In the case of items for which the Finance Minister is responsible,
the agreement is to be made with the Chief Executive of the Agency for which the
appropriation is made. In all other cases, the agreement is to be made with the
Minister who is responsible for the item.
(3) An agreement need not relate to a particular Appropriation Act or Acts
and may be made for any period, including a period longer than a financial
year.
(4) The Finance Minister may at any time cancel or vary an agreement,
without the consent of the other party.
(5) In this section:
Appropriation Act includes a Supply Act.
item means an item, subdivision or division in a Schedule to
an Appropriation Act.
(1) This section applies if a function of an Agency (the old
Agency) becomes a function of another Agency (the new
Agency), either because the old Agency is abolished or for any other
reason.
(2) The Finance Minister may:
(a) issue one or more directions to transfer from the old Agency to the
new Agency some or all of an amount that has been appropriated for the
performance of that function by the old Agency; and
(b) issue one or more directions to transfer from the new Agency back to
the old Agency the whole or a part of an amount that was transferred to the new
Agency by a direction under paragraph (a).
(3) The Finance Minister may not issue a direction that transfers an
amount between Departments of the Parliament except in accordance with a written
recommendation of the Presiding Officers.
(4) A direction has effect from the time it is issued.
(5) A direction does not have the effect of extending any time limit that
applies to the appropriation concerned.
(1) If the Finance Minister considers it appropriate to do so because of
special circumstances, he or she may authorise the making of any of the
following payments to a person (even though the payment or payments would not
otherwise be authorised by law or required to meet a legal liability):
(a) one or more payments of an amount or amounts specified in the
authorisation (or worked out in accordance with the authorisation);
(b) periodical payments of an amount specified in the authorisation (or
worked out in accordance with the authorisation), during a period specified in
the authorisation (or worked out in accordance with the
authorisation).
(2) If a proposed authorisation would involve, or be likely to involve, a
total amount of more than $100,000, the Finance Minister must first consider a
report of an Advisory Committee set up under section 59.
(3) Conditions may be attached to payments under this section. If a
condition is breached, the payment may be recovered by the Commonwealth as a
debt in a court of competent jurisdiction.
(4) Payments under this section are to be made out of money appropriated
by the Parliament for the purposes of this section.
(1) The Finance Minister may, on behalf of the Commonwealth:
(a) waive the Commonwealth’s right to payment of an amount owing to
the Commonwealth;
(b) postpone any right of the Commonwealth to be paid a debt in priority
to another debt or debts;
(c) allow the payment by instalments of an amount owing to the
Commonwealth;
(d) defer the time for payment of an amount owing to the
Commonwealth.
(2) If a proposed waiver under paragraph (1)(a) involves, or is likely to
involve, a total amount of more than $100,000, the Finance Minister must
consider a report of an Advisory Committee set up under section 59 before taking
action on the waiver.
(3) A waiver may be made either unconditionally or on the condition that a
person agrees to pay an amount to the Commonwealth in specified
circumstances.
(4) In this section:
amount owing to the Commonwealth includes an amount that is
owing but not yet due for payment.
(1) If, at the time of a person’s death, the Commonwealth owed an
amount to the person, the Finance Minister may authorise payment of that amount
to the person who the Minister considers should receive the payment.
(2) The Minister may authorise the payment without requiring production of
probate of the will of the deceased person or letters of administration of the
estate of the deceased person.
(3) In deciding who should be paid, the Finance Minister must have regard
to the persons who are entitled to the property of the deceased person under the
deceased person’s will or under the law relating to the disposition of the
property of deceased persons.
(4) After the payment is made, the Commonwealth has no further liability
in respect of the payment. However, this section does not relieve the recipient
from a liability to deal with the money in accordance with law.
(5) This section does not have the effect of appropriating a Fund for the
purposes of payments under this section.
(6) This section extends to cases where the deceased person died before
the commencement of this section.
(1) The following persons have authority to approve a proposal to spend
public money under an appropriation for a Department of the
Parliament:
(a) a Presiding Officer, for expenditure under an appropriation for which
he or she alone is responsible;
(b) the Presiding Officers jointly, for expenditure under an appropriation
for which they are jointly responsible.
(2) A Presiding Officer may by written instrument delegate his or her
powers under this section to an official. In exercising powers under the
delegation, the official must comply with any directions of the Presiding
Officer.
An agreement for the borrowing of money by the Commonwealth is of no
effect unless the borrowing is authorised by an Act. For this purpose,
borrowing includes obtaining an advance on overdraft.
(1) The Finance Minister, on behalf of the Commonwealth, may enter into an
agreement with any bank for borrowing money from the bank by way of advances
(including advances on overdraft) that are to be paid to the Commonwealth and
repaid by the Commonwealth within 90 days.
(2) The Finance Minister, on behalf of the Commonwealth, may enter into
agreements in accordance with the regulations for borrowing money from banks or
other persons. Such an agreement must require the money to be repaid within 60
days after the Commonwealth is notified by the lender of the amount
borrowed.
(1) The Finance Minister may invest Fund balances, or Drawn Money, in any
authorised investment.
(2) Expenses of investment of money from a Fund or component of a Fund may
be debited from the Fund or component. Expenses of investment of Drawn Money may
be paid out of Drawn Money.
(3) Upon realisation of an investment of an amount debited from the Loan
Fund or from a component of the Reserved Money Fund or Commercial Activities
Fund, the proceeds of the investment must be transferred from the Consolidated
Revenue Fund to the Fund or component concerned, up to the amount debited from
the Fund or component for the investment (including amounts debited for
expenses).
(4) Upon realisation of an investment of Drawn Money, there must be
transferred from the Consolidated Revenue Fund to Drawn Money an amount equal to
the full amount paid from Drawn Money for the investment (including amounts
debited for expenses). This requirement applies even if the proceeds of
investment are less than the amount required to be transferred.
(5) At any time before an investment matures, the Finance Minister may
authorise the re-investment of the proceeds upon maturity in an authorised
investment with the same bank or institution.
Note: The proceeds of investment of the original investment
will not become public money when the investment matures because the proceeds
will not be received by or on behalf of the Commonwealth.
(6) The corporation established by section 62B of the Audit Act 1901
is continued in existence for the purposes of this section with the name
“The Minister for Finance of the Commonwealth”. Investments by the
Finance Minister under this section must be made in that corporate
name.
(7) The Funds are appropriated as necessary for the purposes of this
section. Drawn Money may be applied in accordance with this section without
further appropriation.
(8) In this section:
authorised investment means:
(a) securities of the Commonwealth or of a State or Territory;
(b) securities guaranteed by the Commonwealth, a State or a
Territory;
(c) a deposit with a bank, including a deposit evidenced by a certificate
of deposit;
(d) any other form of investment prescribed by the
regulations.
An official who receives any bonds, debentures or other securities in the
course of carrying out duties as an official must deal with them in accordance
with the Finance Minister’s Orders.
Maximum penalty: Imprisonment for 2 years.
Note: Chapter 2 of the Criminal Code sets out the
general principles of criminal responsibility.
An official or Minister must not misapply public property or improperly
dispose of, or improperly use, public property.
Maximum penalty: Imprisonment for 7 years.
Note: Chapter 2 of the Criminal Code sets out the
general principles of criminal responsibility.
(1) If:
(a) a loss of public property occurs; and
(b) at the time of the loss, an official or Minister had nominal custody
of the property as described in subsection (2);
the official or Minister is liable to pay to the Commonwealth the amount of
the loss. However, it is a defence if the person proves that he or she took
reasonable steps in all the circumstances to prevent the loss.
(2) A person (the custodian) has nominal custody of public
property if both of the following conditions are satisfied:
(a) the custodian has taken delivery of the property and has not returned
it to the person entitled to receive the property on behalf of the
Commonwealth;
(b) when the custodian took delivery of the property the custodian signed
a written acknowledgment that the property was delivered on the express
condition that the custodian would at all times take strict care of the
property.
(3) If:
(a) a loss of public property occurs; and
(b) an official or Minister caused or contributed to the loss by
misconduct, or by a deliberate or serious disregard of reasonable standards of
care;
the official or Minister is liable to pay to the Commonwealth the amount of
the loss. However, if the person’s misconduct or disregard was not the
sole cause of the loss, the person is liable to pay only so much of the amount
of the loss as is just and equitable having regard to the person’s share
of the responsibility for the loss.
(4) A person’s liability under this section that arises when the
person is an official or Minister is not avoided merely because the person
ceases to be an official or Minister.
(5) An amount payable to the Commonwealth under this section is
recoverable as a debt in a court of competent jurisdiction.
(6) The Commonwealth is not entitled to recover amounts from the same
person under both subsections (1) and (3) for the same loss.
(7) In this section:
amount of the loss means:
(a) if the property is damaged—the value of the property or the cost
of repairing the property, whichever is less;
(b) in all other cases—the value of the property.
loss includes destruction or damage.
An official or Minister must not make a gift of public property
unless:
(a) the making of the gift is expressly authorised by law; or
(b) the Finance Minister has given written approval to the gift being
made; or
(c) the Commonwealth acquired the property to use it as a gift.
Maximum penalty: Imprisonment for 7 years.
Note: Chapter 2 of the Criminal Code sets out the
general principles of criminal responsibility.
(1) A Chief Executive must manage the affairs of the Agency in a way that
promotes proper use of the Commonwealth resources for which the Chief Executive
is responsible.
(2) If compliance with the requirements of the regulations, Finance
Minister’s Orders, Special Instructions or any other law would hinder or
prevent the proper use of those resources, the Chief Executive must manage so as
to promote proper use of those resources to the greatest extent practicable
while complying with those requirements.
(3) In this section:
proper use means efficient, effective and ethical
use.
A Chief Executive must implement a fraud control plan for the Agency. For
this purpose, fraud includes fraud by persons outside the Agency
in relation to activities of the Agency.
A Chief Executive must establish and maintain an audit committee for the
Agency, with the functions and responsibilities required by the Finance
Minister’s Orders.
(1) A Chief Executive must pursue recovery of each debt for which the
Chief Executive is responsible unless:
(a) the debt has been written off as authorised by an Act; or
(b) the Chief Executive is satisfied that the debt is not legally
recoverable; or
(c) the Chief Executive considers that it is not economical to pursue
recovery of the debt.
(2) For the purposes of subsection (1), a Chief Executive is responsible
for:
(a) debts owing to the Commonwealth in respect of the operations of the
Agency; and
(b) debts owing to the Commonwealth that the Finance Minister has
allocated to the Chief Executive.
(1) A Chief Executive must ensure that accounts and records of the Agency
are kept as required by the Finance Minister’s Orders.
(2) The Finance Minister is entitled to full and free access to the
accounts and records kept under subsection (1). However, the Finance
Minister’s access is subject to any law that prohibits disclosure of
particular information.
(1) A Chief Executive must give to the Auditor-General the annual
financial statements required by the Finance Minister’s Orders.
(2) The financial statements must be prepared in accordance with the
Finance Minister’s Orders and must give a true and fair view of the
matters that those Orders require to be included in the statements.
(3) If financial statements prepared in accordance with the Finance
Minister’s Orders would not otherwise give a true and fair view of the
matters required by those Orders, the Chief Executive must add such information
and explanations as will give a true and fair view of those matters.
(4) In the financial statements, the Chief Executive must state whether,
in his or her opinion, the financial statements give a true and fair view of the
matters required by Finance Minister’s Orders.
(1) A Chief Executive must, when required by the Finance Minister, give
the Finance Minister financial statements covering a period of less than a
financial year. The Finance Minister may require the statements to include some
or all of the details that are required to be included in the annual financial
statements.
(2) A Chief Executive must give the Finance Minister any information that
the Finance Minister requires about the financial affairs of the Agency.
However, a Chief Executive is not required to give information whose disclosure
is prohibited by any law.
(1) If an Agency ceases to exist, the financial statements that would have
been required to be prepared under section 49 by the Chief Executive of that
Agency must be prepared instead by another Chief Executive nominated by the
Finance Minister. However, the statements need not deal with any functions that
were transferred from the Agency that ceased to exist to another
Agency.
(2) If a function is transferred between 2 or more Agencies in a financial
year, the financial statements under section 49 for that function must be
prepared by the Chief Executive of one of those Agencies, or by the Chief
Executives of 2 or more of those Agencies, as directed by the Finance
Minister.
(1) The regulations may authorise Chief Executives to give instructions to
officials in their Agencies on any matter on which regulations may be made under
this Act.
(2) An instruction cannot create offences or impose penalties.
(1) A Chief Executive may, by written instrument, delegate any of the
following powers and functions to an official in any Agency:
(a) the Chief Executive’s powers or functions under this Act
(including powers or functions that have been delegated to the Chief Executive
under section 62);
(b) the Chief Executive’s power to give instructions under
regulations referred to in section 52.
(2) In exercising powers or functions under the delegation, the official
must comply with any directions of the Chief Executive.
(1) As soon as practicable after the end of each month of a financial
year, the Finance Minister must publish a Statement of Commonwealth Financial
Transactions for the purpose of reporting comparisons between:
(a) the transactions of the Funds for the month, and for the financial
year up to the end of the month; and
(b) the Budget Estimates for the financial year.
(2) The Statement must be in a form that reflects the main headings of the
Budget Estimates (by function and type, as appropriate), for the financial
year.
(3) The Statement must contain details of the transactions of the Funds
for the month, and for the current financial year up to the end of the month. It
must also show:
(a) the way in which the surplus for the month was applied, or the deficit
for the month was financed; and
(b) the way in which the surplus for the current financial year up to the
end of that month was applied, or the deficit for the current financial year up
to the end of that month was financed.
(4) The Statement may include any other information that the Finance
Minister considers relevant.
(5) In this section:
Budget Estimates means the estimates of revenue and outlays
tabled in Parliament as part of the annual Budget.
(1) As soon as practicable after the end of each financial year, the
Finance Minister must prepare the annual financial statements required by the
regulations.
(2) The Finance Minister must give the statements to the Auditor-General
as soon as practicable after they are prepared.
(3) If the Finance Minister has not given the statements to the
Auditor-General within 5 months after the end of the financial year, the Finance
Minister must cause to be tabled in each House of the Parliament a statement of
the reasons why the statements were not given to the Auditor-General within that
period.
(1) As soon as practicable after receiving financial statements under
section 55, the Auditor-General must examine the statements and prepare an audit
report in accordance with the regulations.
(2) Instead of preparing a single report, the Auditor-General may prepare
an initial report and one or more later supplementary reports.
(3) The Auditor-General must give a copy of each report to the Finance
Minister.
(4) The Finance Minister must cause a copy of each report to be tabled in
each House of the Parliament as soon as practicable after receipt. Except in the
case of a supplementary report, the copy that is tabled must be accompanied by a
copy of the annual financial statements.
(1) As soon as practicable after receiving financial statements under
subsection 49(1) for an Agency, the Auditor-General must examine the statements
and report in accordance with this section to the Minister responsible for the
Agency.
(2) In the report, the Auditor-General must state whether, in the
Auditor-General’s opinion, the financial statements:
(a) have been prepared in accordance with the Finance Minister’s
Orders; and
(b) give a true and fair view of the matters required by those
Orders.
If the Auditor-General is not of that opinion, the Auditor-General must
state the reasons.
(3) If the Auditor-General is of the opinion that failing to prepare the
financial statements in accordance with the Finance Minister’s Orders has
a quantifiable financial effect, the Auditor-General must quantify that
financial effect and state the amount.
(4) If the Auditor-General is of the opinion that the Chief Executive has
contravened section 48, the Auditor-General must state particulars of the
contravention.
(5) If the Auditor-General is of the opinion that the Auditor-General did
not obtain all necessary information and explanations, the Auditor-General must
state particulars of the shortcomings.
(6) Instead of preparing a single report, the Auditor-General may prepare
an initial report and one or more later supplementary reports.
(7) A copy of the financial statements and the Auditor-General’s
report or reports must be included in the Agency’s annual report that is
tabled in the Parliament.
(1) The application of this Act to an intelligence or security agency is
subject to any modifications that are prescribed by the regulations.
(2) In this section:
intelligence or security agency has the meaning given by
section 85ZL of the Crimes Act 1914.
modifications includes additions, omissions and
substitutions.
(1) An Advisory Committee for the purposes of this Act consists
of:
(a) the Chief Executive Officer of Customs; and
(b) the Secretary to the Department of Finance; and
(c) the Chief Executive of the Agency that is responsible for the matter
on which the Committee has to report.
(2) If there is no Agency responsible for the matter, or if the
responsible Agency is the Department of Finance or the Australian Customs
Service, then the Chief Executive of the Department of Administrative Services
is to be the third member of the Committee.
(3) A member of an Advisory Committee may appoint a deputy to act in his
or her place.
(4) An Advisory Committee may prepare its report without having a
meeting.
(1) An official or Minister must not use a Commonwealth credit card, or a
Commonwealth credit card number, to obtain cash, goods or services otherwise
than for the Commonwealth.
Maximum penalty: Imprisonment for 7 years.
Note: Chapter 2 of the Criminal Code sets out the
general principles of criminal responsibility.
(2) Subsection (1) does not apply to a particular use of a Commonwealth
credit card or Commonwealth credit card number if:
(a) the use is authorised by the Finance Minister’s Orders;
and
(b) the Commonwealth is reimbursed in accordance with the Finance
Minister’s Orders.
(3) In this section:
Commonwealth credit card means a credit card issued to the
Commonwealth to enable the Commonwealth to obtain cash, goods or services on
credit.
An official must not falsify any account, statement, receipt or record
kept or issued for the purposes of this Act or for the purposes of regulations
or other instruments made under this Act.
Maximum penalty: Imprisonment for 7 years.
Note: Chapter 2 of the
Criminal
Code sets out the general principles of criminal
responsibility.
(1) The Finance Minister may, by written instrument, delegate to an
official any of the Finance Minister’s powers or functions under this Act,
except the power to make Orders.
(2) In exercising powers or functions under a delegation, the official
must comply with any directions of the Finance Minister.
(1) The Finance Minister may make Orders:
(a) on any matter on which this Act requires or permits Finance
Minister’s Orders to be made; and
(b) on any matter on which regulations may be made.
(2) An Order cannot create offences or impose penalties.
(3) An Order is a disallowable instrument for the purposes of
section 46A of the Acts Interpretation Act 1901.
(1) The regulations may authorise a Minister to issue guidelines to
officials on matters within the Minister’s responsibility. The matters
must be ones about which regulations may be made under this Act.
(2) A guideline cannot create offences or impose penalties.
(1) The Governor-General may make regulations prescribing
matters:
(a) required or permitted by this Act to be prescribed; or
(b) necessary or convenient to be prescribed for carrying out or giving
effect to this Act.
(2) In particular, the regulations may make provision:
(a) relating to any of the following matters:
(i) handling, spending and accounting for public money;
(ii) commitments to spend public money;
(iii) recovering amounts owing to the Commonwealth;
(iv) using or disposing of public property, or acquiring property that is
to be public property;
(b) generally for ensuring or promoting:
(i) the proper use and management of public money, public property and
other resources of the Commonwealth;
(ii) proper accountability for the use and management of public money,
public property and other resources of the Commonwealth;
(c) for penalties for offences
against the regulations by way of fines of up to 10 penalty units
Note: Section 4AA of the Crimes Act 1914 sets the
current value of a penalty unit.
Note: See section 17.
Simplified model showing
typical transfers