Financial Framework Legislation Amendment Act (No. 1) 2006

No. 30, 2006

An Act to amend Commonwealth financial management legislation and other financial and reporting provisions, and for other purposes

[Assented to 6 April 2006]

The Parliament of Australia enacts:

1 Short title

This Act may be cited as the Financial Framework Legislation Amendment Act (No. 1) 2006.

2 Commencement

(1) Each provision of this Act specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.

Commencement information
Column 1	Column 2	Column 3
Provision(s)	Commencement	Date/Details
1. Sections 1 to 3 and anything in this Act not elsewhere covered by this table	The day after this Act receives the Royal Assent.	7 April 2006
2. Schedule 1	The day after this Act receives the Royal Assent.	7 April 2006
3. Schedule 2	The later of: (a) 1 July 2006; and (b) the day after this Act receives the Royal Assent.	1 July 2006 (paragraph (a) applies)
4. Schedule 3, items 1 to 9	The day after this Act receives the Royal Assent.	7 April 2006
5. Schedule 3, item 10	24 March 2005.	24 March 2005
6. Schedule 3, items 11 to 37	The day after this Act receives the Royal Assent.	7 April 2006
7. Schedule 4	The day after this Act receives the Royal Assent.	7 April 2006

Note: This table relates only to the provisions of this Act as originally passed by the Parliament and assented to. It will not be expanded to deal with provisions inserted in this Act after assent.

(2) Column 3 of the table contains additional information that is not part of this Act. Information in this column may be added to or edited in any published version of this Act.

3 Schedule(s)

Each Act that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms.

Schedule 1—Amendments relating to Special Accounts

Part 1—Aboriginal and Torres Strait Islander Act 2005

1 Subsection 4(1)

Insert:

Land Account means the Aboriginal and Torres Strait Islander Land Account continued in existence by section 192W.

2 Subsection 4(1) (definition of Land Fund)

Repeal the definition.

3 Part 4A (heading)

Repeal the heading, substitute:

Part 4A—Indigenous Land Corporation and Aboriginal and Torres Strait Islander Land Account

4 Division 10 of Part 4A (heading)

Repeal the heading, substitute:

Division 10—Aboriginal and Torres Strait Islander Land Account

5 Section 192W

Repeal the section, substitute:

192W Aboriginal and Torres Strait Islander Land Account

Land Account

(1) There is continued in existence the Aboriginal and Torres Strait Islander Land Account.

Note: The Account was established by subsection 5(3) of the Financial Management Legislation Amendment Act 1999.

(2) The Land Account is a Special Account for the purposes of the Financial Management and Accountability Act 1997.

(3) So far as practicable, an amount standing to the credit of the Land Account that is not required for the purpose of making payments must be invested under section 39 of the Financial Management and Accountability Act 1997.

(4) If income is received by the Commonwealth from the investment of an amount standing to the credit of the Land Account, an amount equal to the income must be credited to the Land Account.

6 Section 192X

Omit “Fund”, substitute “Account”.

Note: The heading to section 192X is altered by omitting “Fund” and substituting “Account”.

7 Subsection 192Z(2)

Omit “Fund”, substitute “Account”.

8 Subsections 193(1) and (2)

Omit “Fund” (wherever occurring), substitute “Account”.

Note: The heading to section 193 is altered by omitting “Fund” and substituting “Account”.

9 Subsections 193(4) and (5)

Repeal the subsections.

10 Subsection 193AA(1)

Omit “Fund” (wherever occurring), substitute “Account”.

Note: The heading to section 193AA is altered by omitting “Fund” and substituting “Account”.

11 Subsections 193AA(4) and (5)

Repeal the subsections.

12 Subsections 193A(1) and (2)

Omit “Fund”, substitute “Account”.

Note: The heading to section 193A is altered by omitting “Fund” and substituting “Account”.

13 Subsections 193C(1) and (3)

Omit “Fund”, substitute “Account”.

Note: The heading to section 193C is altered by omitting “Fund” and substituting “Account”.

14 Subsection 193E(2)

Repeal the subsection, substitute:

Advance to be paid out of amount standing to the credit of the Land Account

(2) An advance is to be debited and paid by the Commonwealth out of the amount standing to the credit of the Land Account.

15 Subsection 193E(3) (note)

Repeal the note.

16 Subsections 193E(4) and (5)

Repeal the subsections, substitute:

Credits to Land Account

(4) If the Indigenous Land Corporation pays an amount under subsection (3), an amount equal to that amount is to be credited to the Land Account.

17 Subsections 193G(1) and (2A)

Omit “Fund” (wherever occurring), substitute “Account”.

Note: The heading to section 193G is altered by omitting “Fund” and substituting “Account”.

18 Subsection 193H(1)

Omit “Fund”, substitute “Account”.

19 Section 193I

Omit “Fund” (wherever occurring), substitute “Account”.

Note: The heading to section 193I is altered by omitting “Fund” and substituting “Account”.

Part 2—Aboriginal Land (Lake Condah and Framlingham Forest) Act 1987

20 Section 38

Repeal the section, substitute:

38 Aboriginal Advancement Account

(1) The Aboriginal Advancement Account is established for the purpose of furthering the social and economic advancement of Aboriginal people living in Victoria.

(2) The Account is a Special Account for the purposes of the Financial Management and Accountability Act 1997.

(3) There must be credited to the Account amounts determined by the regulations.

(4) Amounts standing to the credit of the Account must be debited from the Account for the purposes of the making by the Commonwealth of payments to further the social and economic advancement of Aboriginal people living in Victoria.

(5) If interest is received by the Commonwealth from the investment of an amount standing to the credit of the Account, an amount equal to the interest must be credited to the Account.

38A Notional accounts within the Aboriginal Advancement Account

(1) The regulations may create separate notional accounts within the Aboriginal Advancement Account in the name of particular Aboriginal groups living in Victoria.

(2) Amounts determined in accordance with the regulations must be credited to the notional accounts. To avoid doubt, amounts that may be so determined include amounts required to be credited to the Aboriginal Advancement Account under subsection 38(5).

(3) Amounts standing to the credit of a notional account must be debited from the account for the purposes of the making by the Commonwealth of payments to further the social and economic advancement of the Aboriginal group in whose name the notional account was created.

Part 3—Australian Research Council Act 2001

21 Section 63

Repeal the section, substitute:

63 Credits to Account

Amounts that are given or bequeathed for the purposes of the Account must be credited to the Account.

Note: An Appropriation Act provides for amounts to be credited to a Special Account if any of the purposes of the Account is a purpose that is covered by an item in the Appropriation Act.

Part 4—Child Support (Registration and Collection) Act 1988

22 Paragraph 74(1)(c)

Repeal the paragraph, substitute:

23 At the end of section 74

Add:

(3) If an amount would be credited to the Account under both section 30 of the Financial Management and Accountability Act 1997 and paragraph (1)(c) of this section, the amount is to be credited to the Account under whichever of those provisions first applies.

24 Paragraph 75(1)(c)

Repeal the paragraph, substitute:

(c) to make other payments that the Registrar has determined for the purposes of this Act are payable to persons in respect of child support.

Part 5—Gene Technology Act 2000

25 Paragraph 130(1)(a)

Repeal the paragraph.

26 Paragraphs 130(1)(e) and (f)

Omit “money from the account”, substitute “amounts standing to the credit of the Account”.

27 Paragraph 130(1)(g)

Omit “amounts paid out of the Account”, substitute “amounts debited from the Account”.

28 At the end of subsection 130(1)

Add:

Note: An Appropriation Act provides for amounts to be credited to a Special Account if any of the purposes of the Account is a purpose that is covered by an item in the Appropriation Act.

Part 6—Industrial Chemicals (Notification and Assessment) Act 1989

29 Paragraph 100B(1)(a)

Repeal the paragraph.

30 At the end of subsection 100B(1)

Add:

Note: An Appropriation Act provides for amounts to be credited to a Special Account if any of the purposes of the Account is a purpose that is covered by an item in the Appropriation Act.

Part 7—National Blood Authority Act 2003

31 Paragraph 41(a)

Repeal the paragraph.

32 At the end of section 41

Add:

Note: An Appropriation Act provides for amounts to be credited to a Special Account if any of the purposes of the Account is a purpose that is covered by an item in the Appropriation Act.

Part 8—National Health and Medical Research Council Act 1992

33 Subsection 52(1)

Omit “for Finance” (wherever occurring).

34 After subsection 82(1)

Insert:

(1A) The Minister may delegate to the Chief Executive Officer or to an APS employee in the Department the power of the Minister to deal with any money:

(a) held by the Minister on trust for the purposes of the Account; or

(b) accepted by the Minister for the purposes of the Account subject to a condition;

in accordance with the obligations of the Minister as trustee of the trust or as the person who has accepted the money subject to the condition, as the case may be.

(1B) However, the Minister must not delegate the power if doing so would be inconsistent with the terms of the trust or with the condition.

35 After subsection 82(4)

Insert:

(4A) In the case of a delegation under subsection (1A), the Minister must not issue a direction that would be inconsistent with the terms of the trust, or with the condition, mentioned in that subsection.

36 Transitional

If, immediately before the commencement of this item:

(a) money was held on trust by the Minister for Finance for the purposes of the Account within the meaning of the National Health and Medical Research Council Act 1992; or

(b) money that had been accepted by the Minister for Finance for the purposes of that Account subject to a condition was held by the Minister for Finance;

then, for the purposes of section 52 of the National Health and Medical Research Council Act 1992 as amended by this Part, the money is instead:

(d) if paragraph (b) applies—held and accepted subject to the same condition by the Minister mentioned in that section.

Part 9—Natural Resources Management (Financial Assistance) Act 1992

37 Paragraphs 12(1)(a) and (b)

Omit “for Finance”.

38 Paragraphs 12(1)(a) and (b)

Omit “that Minister”, substitute “the Minister”.

39 At the end of Part 3

Add:

12A Delegation of trust etc. obligations

(1) The Minister may delegate to the Secretary of the Department or to an APS employee in the Department the power of the Minister to deal with any money:

(a) held by the Minister on trust for the purposes of the Account; or

(b) accepted by the Minister for the purposes of the Account subject to a condition;

in accordance with the obligations of the Minister as trustee of the trust or as the person who has accepted the money subject to the condition, as the case may be.

(2) The delegate must exercise the power in accordance with any directions of the Minister.

(3) However, the Minister must not:

(a) delegate the power if doing so would be inconsistent with the terms of the trust or with the condition; or

(b) issue a direction that would be inconsistent with the terms of the trust or with the condition.

40 Transitional

If, immediately before the commencement of this item:

(a) money was held on trust by the Minister for Finance for the purposes of the Account within the meaning of the Natural Resources Management (Financial Assistance) Act 1992; or

(b) money that had been accepted by the Minister for Finance for the purposes of that Account subject to a condition was held by the Minister for Finance;

then, for the purposes of section 12 of the Natural Resources Management (Financial Assistance) Act 1992 as amended by this Part, the money is instead:

(d) if paragraph (b) applies—held and accepted subject to the same condition by the Minister mentioned in that section.

Schedule 2—Amendment of the Safety, Rehabilitation and Compensation Act 1988

1 Subsection 4(1)

Insert:

pre‑determination period, in relation to a claim by an employee for compensation under Division 3 of Part II, means the period from the start of the day when the employee is injured until the end of the day on which Comcare determines the claim.

2 Subsection 4(1)

Insert:

public money has the same meaning as in the Financial Management and Accountability Act 1997.

3 At the end of Division 3 of Part II

Add:

23A Repayment of salary, wages or pay, and re‑crediting of paid leave, where compensation claim successful

(1) This section applies if:

(a) an employee makes a claim for compensation under this Division; and

(b) before or after the employee does so, the Commonwealth makes a payment (the Commonwealth salary etc. payment) to the employee by way of salary, wages or pay in relation to the whole or part of a day in the pre‑determination period; and

(2) The employee must repay the Commonwealth salary etc. payment.

(3) The amount repayable must be set off:

(a) if paragraph (b) does not apply—by Comcare against any amount of compensation payable under this Division to the employee in respect of the injury concerned; or

(b) if, under subsection 112A(3) or 112B(3), Comcare advises the employee’s employer of its intention to make a payment (the advised payment) to the employer in respect of the compensation—by the employer against any amount payable under subsection 112A(4) (the subsection 112A(4) payment) or 112B(4) by the employer to the employee as a result.

Note: If the amount of the Commonwealth salary etc. payment is less than the amount of compensation, the balance of the compensation will still be payable after a set‑off.

(4) To the extent that the amount repayable is set off, Comcare is taken for the purposes of this Act (other than section 90C) to have made a payment in discharge of its liability to pay the compensation.

(5) If Comcare sets the amount off, it must make a payment to the employer of an amount equal to the amount it sets off.

(6) If:

(a) the employer made the Commonwealth salary etc. payment out of public money; and

(b) either:

(i) paragraph (3)(a) applies and the employer receives the payment mentioned in subsection (5) from Comcare; or

(ii) paragraph (3)(b) applies and the employer makes the subsection 112A(4) payment before it receives the advised payment from Comcare;

when the payment or the advised payment is received from Comcare, it is taken for the purposes of section 30 of the Financial Management and Accountability Act 1997 to be a repayment of the Commonwealth salary etc. payment.

(7) To avoid doubt, if the employer made the Commonwealth salary etc. payment out of public money, when the employer receives the advised payment mentioned in paragraph (3)(b) or the payment mentioned in subsection (5) from Comcare, the payment becomes public money.

(8) To the extent that the amount repayable is not set off under subsection (3), it may be recovered by the Commonwealth as a debt due to the Commonwealth by action in a court of competent jurisdiction.

(9) If the Commonwealth salary etc. payment was in respect of leave of absence granted to the employee, the employer must restore the employee’s leave credit.

4 At the end of subsection 33(2)

Add:

; or (e) a Commonwealth salary etc. payment as defined in paragraph 23A(1)(b).

5 After section 112

Insert:

112A Making of compensation payments through employers of employees paid out of public money

(1) This section applies if:

(a) Comcare is liable to pay an amount of compensation under Division 3 of Part II to an employee; and

(b) payments by the employer to the employee of salary or wages (ignoring section 116) are made out of public money.

(2) Comcare may instead make a payment to the employer in respect of the compensation.

(3) Before making the payment, Comcare must advise the employer of its intention to do so (the payment is called the advised payment).

(4) Subject to section 23A, the employer must:

(a) before receiving the advised payment, make a payment of an equal amount (the anticipatory payment) to the employee; or

(b) on receiving the advised payment, hold it for the benefit of the employee until such time as the employer pays it to the employee.

Note: Section 23A requires the employer to set off repayments of salary etc. made to the employee in relation to the pre‑determination period against amounts payable by the employer under this subsection.

(5) When the employer pays the employee the anticipatory payment, or the payment that it holds for the benefit of the employee, the payment is taken for the purposes of this Act (other than section 90C) to be a payment by Comcare in discharge of its liability to pay the compensation.

(6) Also, in the case of the anticipatory payment:

(a) to avoid doubt, the provision of an Act that appropriates the Consolidated Revenue Fund for the purposes of any payments by the employer to the employee of salary or wages (ignoring section 116) also appropriates the Consolidated Revenue Fund for the purposes of the anticipatory payment; and

(b) when the advised payment is received by the employer, it is taken for the purposes of section 30 of the Financial Management and Accountability Act 1997 to be a repayment of the anticipatory payment.

(7) To avoid doubt, when the advised payment is received by the employer, it becomes public money.

112B Making of compensation payments through employers of employees not paid out of public money

(1) This section applies if:

(a) Comcare is liable to pay an amount of compensation under Division 3 of Part II to an employee; and

(b) payments by the employer to the employee of salary or wages (ignoring section 116) are not made out of public money.

(2) Comcare may instead make a payment to the employer in respect of the compensation.

(3) Before making the payment, Comcare must advise the employer of its intention to do so (the payment is called the advised payment).

(4) Subject to section 23A, the employer must, either before or after receiving the advised payment, make a payment of an equal amount to the employee, out of money that the employer holds on its own account.

(5) The payment by the employer is taken for the purposes of this Act (other than section 90C) to be a payment by Comcare in discharge of its liability to pay the compensation.

(6) When the advised payment is received by the employer, it is money that the employer holds on its own account.

6 Section 116

Before “In”, insert “(1)”.

7 Section 116

Before “compensation leave” (wherever occurring), insert “post‑determination”.

8 At the end of section 116

Add:

(2) In this section:

post‑determination compensation leave means compensation leave that takes place after the end of the pre‑determination period in relation to the claim for compensation.

9 Application

(1) The amendments made by items 1, 3 and 4 of this Schedule apply in relation to compensation for injuries occurring after the commencement of this Schedule.

(2) The amendments made by items 2 and 5 of this Schedule apply to liabilities to compensation that exist at, or arise after, the commencement of this Schedule.

(3) The amendments made by items 6 to 8 of this Schedule apply to the grant of leave at any time after the commencement of this Schedule.

Schedule 3—Other amendments

Part 1—Aboriginal and Torres Strait Islander Act 2005

1 Section 200B (the section 200B inserted by item 162 of Schedule 1 to the Aboriginal and Torres Strait Islander Commission Amendment Act 2005)

Renumber as section 200C.

Part 2—Australian Institute of Marine Science Act 1972

2 After section 50

Insert:

50A Delegation of powers by Finance Minister

(1) The Finance Minister may, by written instrument, delegate to an official (within the meaning of the Financial Management and Accountability Act 1997) the power:

(a) to approve the provision of guarantees as mentioned in paragraph 10(2)(hb); or

(b) to approve the borrowing of money on terms and conditions specified in, or consistent with, the approval as mentioned in subsection 42B(1); or

(d) to make determinations as mentioned in subsection 42C(2).

(2) In exercising power under a delegation, the official must comply with any directions of the Finance Minister.

Part 3—Financial Management and Accountability Act 1997

3 Subsection 33(4)

Repeal the subsection.

4 At the end of section 33

Add:

Note: Act of grace payments under this section must be made from money appropriated by the Parliament. Generally, an act of grace payment can be debited against an Agency’s annual appropriation, providing that it relates to some matter that has arisen in the course of its administration or otherwise relates to the Agency’s outcomes.

5 Subsection 58(1)

After “agency”, insert “, or to a prescribed law enforcement agency,”.

Note: The heading to section 58 is altered by adding at the end “or prescribed law enforcement agency”.

6 Subsection 58(2)

Insert:

prescribed law enforcement agency means a law enforcement agency, within the meaning of section 85ZL of the Crimes Act 1914, that is prescribed by the regulations for the purposes of this definition.

Part 4—Native Title Act 1993

7 Paragraph 203CB(2)(d)

Omit “Treasurer”, substitute “Finance Minister”.

8 After subsection 203CB(2)

Insert:

(2A) The Finance Minister may, by written instrument, delegate any of the Finance Minister’s powers or functions under this section to an official (within the meaning of the Financial Management and Accountability Act 1997). In exercising powers or functions under a delegation, the official must comply with any directions of the Finance Minister.

9 Subsection 203CB(4)

Insert:

Finance Minister means the Minister who administers the Financial Management and Accountability Act 1997.

10 Subsection 206(2)

Omit “Aboriginal and Torres Strait Islander Commission Act 1989”, substitute “Aboriginal and Torres Strait Islander Act 2005”.

11 Transitional

If, just before the commencement of this Part, an approval by the Treasurer was in force under paragraph 203CB(2)(d) of the Native Title Act 1993 as then in force, that approval has effect after the commencement of this Part as if it had been given under that paragraph of that Act as amended by this Part.

Part 5—Public Accounts and Audit Committee Act 1951

12 Section 4

Insert:

Finance Minister means the Minister who administers the Financial Management and Accountability Act 1997.

13 Subsection 5(3)

After “he”, insert “or she”.

Note: The heading to section 5 is altered by adding at the end “and Audit”.

14 Subsection 5(6)

After “his”, insert “or her”.

15 Subsections 6(2) and 6(2A)

After “he”, insert “or she”.

16 Subsection 6A(2)

After “his”, insert “or her”.

17 Subsection 9(3)

Repeal the subsection, substitute:

(3) The provisions of this Act (other than this section and section 5, subsection 7(1) and sections 8, 8A, 8B and 12) apply in relation to a Sectional Committee in the same way as they apply in relation to the Committee.

(3AA) In applying any of the provisions, a reference to the Chair or the Deputy Chair of the Committee (except a reference in section 22) is instead a reference to the Chair or the Deputy Chair of the Sectional Committee.

18 Paragraph 9(3A)(c)

Omit “9”, substitute “more”.

19 Section 11

Repeal the section, substitute:

11 Sittings to be public except in certain cases

(1) Subject to subsection (2), the Committee must take all evidence in public.

(2) If, in the Committee’s opinion, evidence relates to a secret or confidential matter:

(a) if the witness giving the evidence requests the Committee to do so—the Committee must take the evidence in private; or

(b) in any other case—the Committee may take the evidence in private.

11A Disclosure and publishing of evidence taken in private

(1) Subject to subsections (2) and (3), the Committee may publish or disclose any evidence taken in private.

(2) If evidence is taken in private at the request of a witness and has not already been published:

(a) the Committee or a member of the Committee must not disclose or publish any of the evidence without the consent of the witness who gave it; and

(b) any other person must not disclose or publish any of the evidence without the consent of the witness who gave it and without the authorisation of the Committee.

(3) If evidence is taken in private other than at the request of a witness and has not already been published, a member of the Committee or any other person must not disclose or publish any of the evidence without the authorisation of the Committee.

(4) The Committee may, in writing signed by the Chair, give an authorisation for the purposes of paragraph (2)(b) or subsection (3).

(5) This section has effect in spite of section 2 of the Parliamentary Papers Act 1908.

20 Subsections 13(3) and 14(1)

After “his”, insert “or her”.

21 Paragraph 14(3)(c)

After “he”, insert “or she”.

22 Subsection 14(4)

After “him” (wherever occurring), insert “or her”.

23 Paragraph 17(1)(b)

After “him”, insert “or her”.

24 Paragraph 17(1)(c)

After “he”, insert “or she”.

25 Subsection 19(2)

After “his”, insert “or her”.

26 Subsection 19(2)

After “him”, insert “or her”.

27 Subsection 22(2)

Repeal the subsection, substitute:

(2) However, the prescribed allowances are not payable unless the Chair or Deputy Chair certifies in writing that they are payable.

(3) Prescribed allowances in respect of which such certification has been given are payable out of the Consolidated Revenue Fund, which is appropriated accordingly.

28 Subsections 23(1) and (2)

Omit “Twenty thousand dollars” (wherever occurring), substitute “$20,000”.

29 Subsection 23(2)

Omit “Minister for Finance”, substitute “Finance Minister”.

30 The Schedule (Form C)

Omit “19” (wherever occurring), substitute “20”.

31 The Schedule (Form D)

After “him” (wherever occurring), insert “or her”.

32 The Schedule (Form D)

After “he”, insert “or she”.

33 The Schedule (Form D)

Omit “19”, substitute “20”.

34 Application

(1) The amendment made by item 30 applies to summonses issued after the commencement of this Part.

(2) The amendments made by items 31 to 33 apply to warrants issued after the commencement of this Part.

Part 6—Public Service Act 1999

35 Subsection 73(6)

Repeal the subsection.

36 At the end of section 73

Add:

Note: Payments under this section must be made from money appropriated by the Parliament. Generally, a payment can be debited against an Agency’s annual appropriation, providing that it relates to some matter that has arisen in the course of its administration or otherwise relates to the Agency’s outcomes.

Part 7—Superannuation Act 1976

37 Subsection 160(2)

Omit “Public Account”, substitute “Consolidated Revenue Fund”.

Schedule 4—Repeal of Acts

Employment Services Act 1994

1 The whole of the Act

Repeal the Act.

Loan Act 1977

2 The whole of the Act

Repeal the Act.

[Minister’s second reading speech made in—

House of Representatives on 8 December 2005

Senate on 27 February 2006]

(197/05)