Commonwealth Numbered Regulations - Explanatory Statements

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FINANCIAL MANAGEMENT AND ACCOUNTABILITY AMENDMENT REGULATION 2012 (NO. 2) (SLI NO 38 OF 2012)

EXPLANATORY STATEMENT

Select Legislative Instrument 2012 No. 38

Subject -              Financial Management and Accountability Act 1997

Financial Management and Accountability Amendment

Regulation 2012 (No. 2)

The Financial Management and Accountability Act 1997 (the 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 the FMA Act.

The Regulation updated the Financial Management and Accountability Regulations 1997 (the Principal Regulations) to improve their operation.

The Regulation amended Schedule 1 of the Principal Regulations to reflect changes to several FMA Act Agencies The Regulation made changes to Schedule 1 to the Principal Regulations affecting the items for the Interim Independent Hospital Pricing Authority (Interim IHPA), the Australian Taxation Office (ATO) and Note A. 

Schedule 1 to the proposed Regulation inserted a note to item 127 -Australian Taxation Office. At the request of the Tax Practitioners Board (TPB), the Principal Regulations were amended on 8 March 2012 to include a reference to the TPB in the description of the ATO.  This note clarified the status of the TPB within the ATO.

Schedule 1 also made a minor change to Note A of Schedule 1 to the Principal Regulations to add the date of gazettal for the National Mental Health Commission.

Schedule 2 to the Regulation removed IHPA from Schedule 1 to the Principal Regulations.  A minor change to Note A of Schedule 1 was required to remove the reference to Interim IHPA.

The Interim IHPA was established on 17 August 2011 pending the statutory establishment of the Independent Hospital Pricing Authority (IHPA) as an FMA Act Agency in the Health and Ageing portfolio, as part of the National Health Reform Agreement 2011.  The National Health Reform Amendment (Independent Hospital Pricing Authority) Act 2011, establishing IHPA, commenced on 15 December 2011. 

Consistent with section 17 of the Legislative Instruments Act 2003, consultation has taken place with the Department of the Prime Minister and Cabinet (PM&C), because it is responsible for advising on the creation of Executive Agencies.  Consultation has also taken place with the Department of Health and Ageing.  Also, the primary legislation establishing IHPA was developed in consultation with State and Territory governments as part of the National Health Reform Agreement 2011 agreed by the Council of Australian Governments in August 2011.

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

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 Regulation makes beneficial changes to financial and related legislation by amending the Principal Regulations.  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.

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

This Regulation is a legislative instrument for the purposes of the Legislative Instruments Act 2003.

Schedule 1 of the Regulation commenced on the day after registration on the Federal Register of Legislative Instruments.  Schedule 2 of the Regulation commenced on 1 April 2012.

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

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