Save Search

Note: Where available, the PDF/Word icon below is provided to view the complete and fully formatted document
Financial Framework Legislation Amendment Bill (No. 1) 2011

Bill home page  


Download WordDownload Word


Download PDFDownload PDF

 

 

 

 

 

2010-2011

 

 

 

THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA

 

 

 

 

HOUSE OF REPRESENTATIVES

 

 

 

 

 

Financial Framework

Legislation Amendment Bill (No. 1) 2011

 

 

 

 

 

 

Supplementary Explanatory Memorandum

 

 

 

Amendments to be Moved on Behalf of the Government

 

 

 

(Circulated with the authority of the

Minister for Finance and Deregulation,

 Senator the Hon Penny Wong)

 

 

 

 

 

 

 

 

 



 

 

TABLE OF CONTENTS

 

 

Table of abbreviations and common terms.................................................... ii

I. NOTES ON AMENDMENT......................................................................... 1

a)           Overview.............................................................................................. 1

b)           Clarifying the status of CEIs................................................................ 1

 



 

 

Table of abbreviations and common terms

 

 

Abbreviation or

common term

Full term or description

Chief Executive

Chief Executive, for a prescribed Financial Management and Accountability Act 1997 (FMA Act) Agency under the Financial Management and Accountability Regulations 1997 , means the person identified by the regulations as the Chief Executive of the Agency, or, for any other FMA Act Agency, means the person who is the Secretary of the relevant Department of State (for the purposes of the Public Service Act 1999 ) or the Secretary or Clerk of the relevant Department of the Parliament (under the Parliamentary Service Act 1999 ).

CEIs

Chief Executive’s instructions, made under section 52 of the FMA Act

FFLA Bill 2011

Financial Framework Legislation Amendment Bill (No. 1) 2011

FMA Act

Financial Management and Accountability Act 1997

FMA Regulations

Financial Management and Accountability Regulations 1997

FRLI

Federal Register of Legislative Instruments

Item

An item of a Schedule of the Financial Framework Legislation Amendment Bill (No. 1) 2011

Legislative Instruments Act

Legislative Instruments Act 2003

OLDP

Office of Legislative Drafting and Publishing (in the Attorney-General’s Department)



I. NOTES ON AMENDMENT

 

a)    Overview

1.               The proposed Government amendment to the Financial Framework Legislation Amendment Bill (No. 1) 2011 (FFLA Bill 2011) comprises a single amendment that clarifies that Chief Executive’s instructions (CEIs), made under section 52 of the Financial Management and Accountability Act 1997 (FMA Act), are not to be treated as legislative instruments.

2.               The amendment would appear at Item 3 of Schedule 2 of the FFLA Bill 2011.

 

b)   Clarifying the status of CEIs

3.               CEIs are internal management instruments that have been able to be made by Chief Executives, under section 52 of the FMA Act, since the FMA Act commenced on 1 January 1998.

4.               No CEIs have been registered on the Federal Register of Legislative Instruments (FRLI), which was established under the Legislative Instruments Act 2003 (Legislative Instruments Act) that commenced on 1 January 2005.

5.               The Office of Legislative Drafting and Publishing (OLDP), which is responsible for FRLI, does not view CEIs as being legislative in character, nor, as a consequence, legislative instruments.

6.               The FFLA Bill 2011 aims to improve the interaction of the FMA Act with the Legislative Instruments Act regarding 3 types of instruments:

·         Special Account determinations (made under section 20 of the FMA Act);

·         Guidelines (such as those dealing with procurement, under section 64 of the FMA Act and regulation 7 of the FMA Regulations); and

·         CEIs (under section 52 of the FMA Act).

7.               The amendment proposed to the FFLA Bill 2011 would ensure that CEIs continue to not be treated as legislative in character, given that CEIs relate to the internal administration of each of the agencies under the FMA Act.

8.               Under the current arrangements, FMA Act agencies are not required to register their CEIs on FRLI.  The proposed amendment would ensure that this situation is retained, through a definitive statement that CEIs are not legislative instruments.

9.               In contrast, Special Account determinations and Guidelines, such as the Commonwealth Procurement Guidelines , are registered on FRLI: that will continue to be the case under the FFLA Bill 2011.