Senate

Financial Framework Legislation Amendment Bill (No. 1) 2011

Revised Explanatory Memorandum

This memorandum takes account of an amendment made by the The House Of Representatives to The Bill as introduced

(Circulated with the authority of the Minister for Finance and Deregulation, Senator the Hon Penny Wong)

Financial Framework Legislation Amendment Bill (No. 1) 2011

I. GENERAL OUTLINE

Main features of the FFLA Bill 2011

1. The Financial Framework Legislation Amendment Bill (No. 1) 2011 (FFLA Bill 2011) would, if enacted, amend 8 Acts across 5 portfolios to clarify the Commonwealth's financial framework and amend and update the governance and financial arrangements of existing government bodies, among other related measures.

2. Specifically, the FFLA Bill 2011 would:

Improve the readability of the Commonwealth Authorities and Companies Act 1997 (CAC Act) by moving the detail for the corporate plans of a Government Business Enterprise (GBE) into the Commonwealth Authorities and Companies Regulations 1997 ;
Improve the readability of the Financial Management and Accountability Act 1997 (FMA Act) by clarifying its interaction with the Legislative Instruments Act 2003 (Legislative Instruments Act), and clarifying a reference to the 'external auditors' of FMA Act agencies as meaning a reference to the Auditor-General; and
Amend six other Acts to update and clarify specific provisions relating to the Commonwealth's financial framework and governance arrangements, which would:

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Make consequential amendments to the Legislative Instruments Act following on from the changes to the FMA Act;
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Update the Wheat Export Marketing Act 2008 (Wheat Act) so that the Wheat Exports Australia Special Account (Wheat Special Account) can be credited for amounts that are consistent with the range of purposes that are allowed for the debiting of the Wheat Special Account;
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Amend the Wine Australia Corporation Act 1980 (Wine Act) to update the circumstances in which the Wine Australia Corporation (Wine Australia) must provide its annual operational plan to the responsible Minister, and clarify the term in office of a member of the Geographical Indications Committee;
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Update a reference in the Renewable Energy (Electricity) Act 2000 (Electricity Act) to the 'Australian Bureau of Agricultural and Resource Economics and Sciences' and remove a redundant reference to this organisation's former name in the Primary Industries (Excise) Levies Act 1999 (Excise Levies Act); and
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Repeal a redundant paragraph and make technical amendments to the Science and Industry Research Act 1949 (CSIRO Act).

3. The FFLA Bill 2011 is the eighth Financial Framework Legislation Amendment Bill (FFLA Bill) since 2004, and forms part of an ongoing program to address financial framework issues as they arise, and assist in ensuring that specific provisions in existing legislation remain clear and up-to-date. These changes have been developed in collaboration with the relevant Ministers and their Departments.

4. Five out of eight FFLA Bills have become law, with the first and the sixth FFLA Bills lapsing upon the prorogation of the Australian Parliament for the 2004 and 2010 federal elections respectively. The first FFLA Bill focussed primarily on amending legislation to reflect the creation of Special Accounts in the Financial Management Legislation Amendment Act 1999 . Later FFLA Bills, including this one, cover a range of matters including financial management provisions, governance structures and legislative anomalies.

Financial Impact Statement

5. The proposed amendments have no financial impact. The amendments are aimed at improving governance arrangements for a number of FMA Act agencies and CAC Act bodies, and may lead to productivity gains.


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