Commonwealth of Australia Explanatory Memoranda Commonwealth of Australia Explanatory Memoranda[Index] [Search] [Download] [Bill] [Help]
2004-2005-2006-2007
THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA
SENATE
FINANCIAL FRAMEWORK LEGISLATION AMENDMENT BILL
(NO. 1) 2007
REPLACEMENT EXPLANATORY MEMORANDUM
(Circulated with authority of the
Minister for Finance and Administration,
Senator the Hon Nick Minchin)
This explanatory memorandum replaces the one presented to
the House of Representatives on 10 May 2007
TABLE OF CONTENTS
OUTLINE .............................................................................................................................. 1
FINANCIAL IMPACT STATEMENT ................................................................................. 2
NOTES ON CLAUSES ......................................................................................................... 2
Clause 1: Short Title ............................................................................................................................ 2
Clause 2: Commencement.................................................................................................................... 2
Clause 3: Schedules ............................................................................................................................. 2
SCHEDULE 1 - AMENDMENTS........................................................................................ 2
Consequential amendments to the Auditor-General Act 1997 ...............................................2
Special Accounts: sections 20 and 21 ....................................................................................3
Special Appropriation - Repayments by the Commonwealth: section 28 .............................3
Repayments to the Commonwealth: section 30 .....................................................................4
Appropriations to take account of recoverable GST: section 30A .........................................5
Relevant Agency receipts - formerly Agreements for "net appropriations": section 31 .......6
Transfer of Agency functions: section 32 ..............................................................................6
Timing of adjustments to appropriations: section 32A ..........................................................7
Chief Executive's ability to issue directions in relation to the delegation of powers of
functions: section 53...............................................................................................................8
Saving, application and transitional provisions......................................................................9
Consequential amendments to the Legislative Instruments Act 2003 ....................................9
TABLE OF ABBREVIATIONS
Auditor- Auditor-General Act 1997
General Act
FFLA Bill Financial Framework Legislation Amendment Bill (No.1) 2007
FMA Act Financial Management and Accountability Act 1997
GST Goods and Services Tax
Item An item of Schedule 1 of the FFLA Bill
LI Act Legislative Instruments Act 2003
Financial Framework Legislation Amendment Bill (No.1) 2007
OUTLINE
1. The Financial Framework Legislation Amendment Bill (No.1) 2007 (FFLA Bill)
proposes amendments to the Financial Management and Accountability Act 1997
(FMA Act) with consequential amendments to two other Acts, all of which are set out in
Schedule 1 to the FFLA Bill.
2. The purpose of the proposed amendments to the FMA Act is to reduce red tape in
internal Australian Government administration, simplify the financial management
framework, and address issues relating to the management of appropriations. In particular,
the FFLA Bill would:
· amend section 32 of the FMA Act to increase efficiency in implementing
machinery of government changes;
· amend section 31 to remove the requirement for over 80 bilateral net
appropriation agreements and to provide instead, for the making of a
regulation in relation to departmental appropriations only;
· clarify how sections 28 and 30 apply to repayments made by or to the
Commonwealth, respectively, including their application to transactions
between agencies under the FMA Act;
· streamline section 30A to simplify the application of the Goods and Services
Tax (GST) to transactions involving the Commonwealth;
· insert a new section 32A to clarify the timing of certain adjustments to
appropriations in relation to Special Accounts (under sections 20 or 21 of the
FMA Act), repayments to the Commonwealth (section 30), recoverable GST
(section 30A) and relevant Agency receipts (section 31); and
· amend section 53 to clarify a Chief Executive's power to issue directions
when providing delegations (or sub-delegations) to officials.
3. Consequential amendments arising from the above changes relate to:
· Section 52 of the Auditor-General Act 1997 (Auditor-General Act), which is
proposed for repeal because it will no longer have scope to operate after the
removal of "net appropriation agreements" under section 31 of the FMA Act;
and
· Sections 44 and 54 of the Legislative Instruments Act 2003 (LI Act), which
are proposed for amendment due to the changes to sections 31 and 32 of the
FMA Act.
4. This replacement explanatory memorandum supplants the version presented to the
House of Representatives on 10 May 2007 to:
· address matters raised by the Senate Standing Committee for the Scrutiny of
Bills in its Alert Digest No.6 of 2007 (13 June 2007) in relation to the
proposed amendments to section 32 of the FMA Act;
· provide additional information about the proposed amendments, including in
relation to issues raised by the Bills Digest no. 161 of 30 May 2007;
· include a table to summarise relevant abbreviations; and
· correct some references to Items in Schedule 1 of the FFLA Bill.
Replacement Explanatory Memorandum to the 1
Financial Framework Legislation Amendment Bill (No.1) 2007
FINANCIAL IMPACT STATEMENT
5. The proposed amendments have no financial impact. The amendments are aimed at
improving the efficiency and effectiveness of Agency operations by reducing red tape in
internal Australian Government administration and simplifying the financial management
framework.
NOTES ON CLAUSES
6. The structure of the FFLA Bill comprises three clauses that then refer to one schedule,
which contains the substantive amendments to three Acts: the Auditor-General Act, the
FMA Act and the LI Act. Each amendment is included in an item of Schedule 1 of the
FFLA Bill (Item).
Clause 1: Short Title
7. This clause provides that when the FFLA Bill is passed it may be cited as the Financial
Framework Legislation Amendment Act (No. 1) 2007.
Clause 2: Commencement
8. This clause provides that the amendments relating to section 32 (Transfer of Agency
functions) and to section 53 (Chief Executive may delegate powers) of the FMA Act would
commence on Royal Assent, with the remainder of the amendments commencing on a day
to be fixed by proclamation. In relation to section 32, the amendment would take effect
promptly as it relates to machinery of government changes. Section 53 of the FMA Act
relates to day-to-day Agency management and therefore should also commence promptly.
Clause 3: Schedules
9. This clause provides that each Act specified in a Schedule to the FFLA Bill would be
amended or repealed as set out in the applicable items in the Schedule concerned. There is
only one schedule to the Bill, and it amends, repeals or replaces certain provisions in the
Auditor-General Act, the FMA Act or the LI Act.
SCHEDULE 1 - AMENDMENTS
Consequential amendments to the Auditor-General Act 1997
10. Item 1 repeals section 52 of the Auditor-General Act, as a consequence of the
amendment proposed to section 31 of the FMA Act.
· Section 52 of the Auditor-General Act currently provides for the making of a net
appropriation agreement between the Finance Minister and the Auditor-General.
· The amendments proposed to section 31 of the FMA Act would make section 52 of
the Auditor-General Act redundant.
Replacement Explanatory Memorandum to the 2
Financial Framework Legislation Amendment Bill (No.1) 2007
· As set out in relation to section 31 below, Item 8 would abolish the provision for net
appropriation agreements, and allow instead for the making of a regulation.
Accordingly, Parliamentary scrutiny under the proposed amendment will be
enhanced, as the current agreements under section 31 are exempt from disallowance.
A regulation made under the proposed amended arrangements, on the other hand,
would not be exempt from disallowance. There would therefore no longer be a need
for a special safeguard for the unique, independent status of the Auditor-General.
Special Accounts: sections 20 and 21
11. Item 2 amends subsection 20(1) of the FMA Act by adding a note at the end of the
subsection. The note makes clear that the new section 32A of the FMA Act, inserted by
Item 10, applies to Special Accounts established under subsection 20(1), which relates to
Special Accounts that are established by a determination made by the Finance Minister.
New section 32A, described further below, clarifies the timing of the operation of
subsection 20(1), by providing that the appropriation is adjusted when the Agency makes
an adjustment in its accounts and records.
12. Item 3 amends subsection 21(1) of the FMA Act in a similar way: by adding a note at
the end of the subsection, it makes clear that new section 32A applies to Special Accounts
established under subsection 21(1) of the FMA Act, which relates to Special Accounts that
are established by an Act.
Special Appropriation - Repayments by the Commonwealth: section 28
13. Item 4 repeals the existing subsection 28(1) of the FMA Act (not including the note),
and substitutes a new subsection 28(1). This provision relates to the situation where the
Commonwealth makes a repayment, but it is necessary for the relevant Agency to rely on a
special appropriation to support the making of that repayment to another person or Agency.
· The proposed subsection 28(1) sets out a clearer description of the process that
enables an Agency to use the special appropriation in subsection 28(2). In short, the
steps involve an amount having been received by the Commonwealth where some or
all of the amount is required or permitted to be repaid, and, but for section 28, there
is no appropriation "for the repayment".
· The proposed subsection 28(1)(c) refers to an appropriation being "for the
repayment", consistent with the wording in the existing section 28(1)(b). An
appropriation that would be "for the repayment" is seen as one that provides, with
some specificity, for repayments, or that clearly contemplates that the appropriation
may be used for the making of repayments. An appropriation for the departmental
expenditure or administered outcomes of an Agency is not seen, for the purposes of
section 28, as an appropriation "for the repayment" of an amount that an Agency is
required to repay.
· Accordingly, section 28 may be relied upon even if an Agency might have
departmental or administered appropriations available. A decision to rely upon the
special appropriation in subsection 28(2) will involve the discretion of the relevant
Agency's Chief Executive (or delegate or other authorised official) having regard to
any relevant policy or other considerations applicable in the circumstances.
· Section 28 can also be relied upon in certain circumstances where a repayment is
made to a person or Agency on behalf of, or in relation to, a payment made to the
Commonwealth by a different person or Agency. An example would be where a
Replacement Explanatory Memorandum to the 3
Financial Framework Legislation Amendment Bill (No.1) 2007
payment needs to be made to a body that is a successor to the original payer, which
can arise, for example, in relation to a company that has been wound up or sold to
another entity.
14. Item 4 also amends the heading of section 28, renaming it from "Appropriation for
repayments required or permitted by law" to "Repayments by the Commonwealth".
· Section 28 still involves a special appropriation, but the aim is for its heading to
contrast more clearly with the renamed heading of section 30 of the FMA Act.
· The amendment to the heading helps clarify the distinction between sections 28 and
30, by more clearly showing that the former relates to repayments made by the
Commonwealth, while the latter relates to repayments made to the Commonwealth
(received by an Agency when another person is making a repayment to that
Agency).
15. Section 28 operates, in conjunction with section 6 of the FMA Act (Notional payments
and receipts by agencies). This means that a reference to an amount received by the
Commonwealth includes amounts received by an Agency from another person or Agency
within the Commonwealth.
· For example, if a Department received a notional payment from an Agency in the
Commonwealth, and the Department later needed to repay some or all of that
amount but did not have sufficient available appropriation, then the Department
could rely on subsection 28(2) as an appropriation to repay the Agency.
16. Item 5 repeals subsection 28(3) of the FMA Act. In conjunction with the amendments
in Item 4, the repeal of subsection 28(3) would give greater clarity for the operation of
section 28, in particular in terms of its interaction with amounts that might have been
credited to a Special Account.
Repayments to the Commonwealth: section 30
17. Item 6 repeals section 30 of the FMA Act and substitutes a new section 30. This
provision relates to the situation where the Commonwealth receives a repayment from
another person or Agency, so that the receiving Agency is able to credit that repayment to
the appropriation that it used to initially in paying that other person or Agency.
· Section 30 currently provides for an appropriation to be reinstated where an amount
is repaid to the Commonwealth.
· Consistent with the proposed new section 28 (described above), the new section 30
sets out a clearer description of the process which an Agency should follow in
handling a repayment that it receives, and recording the repayment in its accounts
and records.
· Section 30 allows an Agency to re-credit (to an appropriation that had been relied
upon for an initial payment by the Agency) an amount equivalent to the repayment.
· The timing of this re-crediting is clarified as being the point at which an Agency
makes an entry recording the repayment in its accounts and records (see discussion
of section 32A below). This clarifies the existing section 30 which states that "the
appropriation has effect as if the amount had not been paid out", which could
potentially create difficulties in recording the effect of such repayments, especially if
Replacement Explanatory Memorandum to the 4
Financial Framework Legislation Amendment Bill (No.1) 2007
a repayment were to occur later than the financial year when the initial payment had
been made.
· Section 30 can also be relied upon in certain circumstances where a repayment is
made by a person on behalf of, or in relation to, a payment made by the
Commonwealth to a different person or Agency. An example would be where a
repayment is made by a body that is a successor to the original recipient of a
payment from the Commonwealth, which can arise, for example, in relation to a
company that has been wound up or sold to another entity.
18. The new section 30 also clarifies that the section applies to notional payments and
notional receipts (being those within or between agencies or people in the Commonwealth),
consistent with section 6 of the FMA Act (Notional payments and receipts by agencies).
· Section 30 currently refers to an amount being repaid "after having been paid out of
the CRF under the authority of an appropriation".
· The CRF is defined in the FMA Act as referring to the Consolidated Revenue Fund
which, in turn, is mentioned in paragraph 17(k) of the Acts Interpretation Act 1901
as meaning, unless a contrary intention appears, the Consolidated Revenue Fund
referred to in section 81 of the Australian Constitution.
· Amendments made to the Acts Interpretation Act 1901, and other Acts, by the
Financial Framework Legislation Amendment Act 2005 (No.8 of 2005) clarified that
the CRF is seen as concomitant with the Commonwealth.
· Accordingly, there is a risk that section 30 of the FMA Act, if not clarified, could be
interpreted as only relating to repayments made to the Commonwealth by a person
outside of the Commonwealth. This would risk denying the proper operation of
section 6 of the FMA Act, in relation to notional payments or notional receipts.
· For example, if an Agency made a notional payment to a Department in the
Commonwealth, and the Department later repaid some or all of that amount to the
Agency, then the Agency could rely on section 30 to recredit that amount to the
appropriation that had been relied upon for its initial notional payment.
19. Item 6 also amends the heading of section 30. It changes it from "Appropriation to be
reinstated for amounts repaid" to "Repayments to the Commonwealth", consistent with the
change to the name of section 28 (described above).
Appropriations to take account of recoverable GST: section 30A
20. Item 7 repeals subsections 30A(1) to (6) of the FMA Act and substitutes them with
new subsections 30A(1) and (2).
21. The effect is to simplify and clarify when a GST liability arises under section 30A, and
when the adjustment to the appropriation takes place (which occurs by reference to the new
section 32A, described below, as mentioned in notes under the new subsections 30A(1) and
(2)). In short, the new section 30A removes duplicated words and streamlines the
description of what occurs when the use of certain appropriations need to take account of
recoverable GST.
22. Section 30A would retain its current definitions, which are set out in
subsection 30A(7).
Replacement Explanatory Memorandum to the 5
Financial Framework Legislation Amendment Bill (No.1) 2007
Relevant Agency receipts - formerly Agreements for "net appropriations":
section 31
23. Item 8 replaces section 31 of the FMA Act with a new section 31 that covers a
narrower range of appropriations through a process that involves increased transparency
and Parliamentary oversight. This amendment has arisen, partly, in response to criticisms
of net appropriation agreements that were made by the Auditor-General in Report No. 28 of
2005/2006, Management of Net Appropriation Agreements.
· Section 31 currently provides for bilateral net appropriation agreements between the
Finance Minister and other Ministers (or Chief Executives within the Finance
portfolio), which, in conjunction with relevant provisions of the annual
Appropriation Acts, can give agencies the authority to spend amounts equivalent to
certain amounts that they receive.
· The amendment proposes that the arrangements currently covered by over 80
bi-lateral net appropriation agreements ought, instead, be dealt with through a single
legislative instrument, being a regulation in relation to a "departmental item" in an
Appropriation Act. The term, "departmental item", is used in Annual Appropriation
Acts No.1 or (regarding the additional estimates) No.3, that relate to the "ordinary
annual services of the Government". This is a phrase that, in turn, is referred to in
sections 53 and 54 of the Australian Constitution.
· In short, therefore, existing net appropriation agreements could allow for agencies to
increase any appropriation items marked as "net appropriation" in any Annual
Appropriation Act, including administered appropriations and appropriations other
than for the ordinary annual services of the Government. The revised section 31
arrangements are more constrained. A regulation prescribing amounts that may be
retained through this process will not apply to as broad a range of appropriations as
could occur through bi-lateral net appropriation agreements under the current
section 31 arrangements.
· Whereas the existing net appropriation agreements are exempt from disallowance, a
regulation is disallowable by either House of the Australian Parliament.
· The use of regulations still allows for appropriate levels of Agency-specific
flexibility, if required, as they could provide for agency-specific arrangements or,
depending on relevant policy consideration, for uniform arrangements across all
agencies.
24. Consequential amendments arising from this clarification to section 31 also apply to:
· Section 52 of the Auditor-General Act (described above); and
· Sections 44 and 54 of the LI Act (described below).
Transfer of Agency functions: section 32
25. Item 9 replaces section 32 of the FMA Act with a new section 32, to increase clarity
about the administration associated with the movement of appropriations following
machinery of government changes, and other transfers of functions between agencies, as
determined by the Government of the day. The amendment will increase the transparency
of the way in which appropriations are affected following such machinery of government
changes.
26. The proposed section 32 clarifies that a determination issued by the Finance Minister,
under the new subsection 32(2), amends the schedule to an Appropriation Act (which sets
Replacement Explanatory Memorandum to the 6
Financial Framework Legislation Amendment Bill (No.1) 2007
out the break-up of amounts appropriated to relevant agencies). The amendment must be
related to a transfer of an Agency function, and operate to transfer the actual appropriation
from the transferring Agency to the gaining Agency, rather than simply providing the
gaining Agency with access to transferring Agency's appropriations.
27. Importantly, a determination cannot result in a change in the total amount that had been
authorised by the Parliament in the relevant, original Annual Appropriation Act(s): see
proposed new subsection 32(4).
28. The current section 32 operates, in effect, as a "Henry VIII" clause, that is, a
subordinate legislative instrument that has an affect on primary legislation (in this case not
being the FMA Act itself but the relevant Annual Appropriation Acts). Accordingly,
directions currently made by the Finance Minister under section 32 affect the way in which
agencies are required to interpret their annual appropriations, after a transfer of Agency
functions has occurred.
29. The new subsection 32(2) replaces the current directions with provision for a
determination that is expressly described as a "legislative instrument" (new
subsection 32(7)), which, in turn, must be published on the Federal Register of Legislative
Instruments, in accordance with the LI Act.
30. The amendment will ensure that agencies are able to assess their financial position
against the actual revised schedules of Appropriation Acts, rather than needing to interpret
the effect of a direction that, potentially, did not operate to change the text of the
Schedules, while clearly affecting their interpretation. Accordingly, the proposed
amendment provides clearer legislative authority to address a range of practical situations
that can arise with a transfer of functions or machinery of government changes.
31. The proposed new subsection 32(8) does have limited scope for retrospective
operation, to the extent that it is necessary for appropriate administrative, accounting and
practical reasons that arise in the context of such transfers of functions. Importantly,
however, the proposed new subsection 32(9) makes clear that a determination is not, of
course, able to authorise any expenditure under an appropriation that did not exist at the
time of the expenditure.
32. Accordingly, new subsection 32(8) provides for situations where clarity about the date
of a change in functions may require reference to a day before the making of the
determination, such as a Ministerial announcement or a formal change to the
Administrative Arrangements Order. However, this cannot replace the need for existing
appropriations only to be used by agencies when they spend public money.
Timing of adjustments to appropriations: section 32A
33. Item 10 inserts a proposed new section 32A to the FMA Act. Its effect is to clarify the
timing of certain adjustments to appropriations in relation to:
· Special Accounts (under sections 20 or 21 of the FMA Act);
· repayments to the Commonwealth (section 30);
· recoverable GST (section 30A); and
· relevant Agency receipts (section 31).
Replacement Explanatory Memorandum to the 7
Financial Framework Legislation Amendment Bill (No.1) 2007
34. Specifically, it makes clear that the adjustments to the above appropriations only takes
effect when the adjustment is actually recorded in the relevant Agency's accounts and
records.
35. This means that changes to appropriations cannot occur without an Agency taking
active steps to recognise the change. It also clarifies that an Agency can, and should,
determine the proper characterisation of a receipt of cash to determine the appropriation
that ought to be increased. Agencies need to apply their discretion to these decisions due to
a range of factors.
· First, there may be a number of appropriations to which an amount could be credited
(such as, a Special Account, a departmental item prescribed under section 31 of an
appropriation that was used for a payment that is later repaid to the Agency).
· Second, agencies may need to distinguish between amounts received from another
Agency within the Commonwealth, in terms of whether the amount would have no
affect on appropriations (such as a transfer from one Agency bank account to
another) or an amount that could affect its appropriations (such as involving a
notional payment or a notional receipt as defined in section 6 of the FMA Act).
· Third, an Agency may not be immediately able to ascertain the best way to
characterise an amount that it receives. The proposed section 32A allows for the
Agency's appropriations to remain unaltered, even after the Agency has, for
example, banked the relevant public money into one of its official accounts. This
allows for the management of its cash to follow relevant banking procedures, while
the management of its appropriations may require analysis in relation to any relevant
accounting, legal or policy considerations.
36. The proposed section 32A, if enacted, will not affect accounting rules regarding the
recognition of potential revenue or assets, and nor will it affect accrual accounting or
accrual budgeting requirements. Its purpose is to clarify when, as a matter of law, an
Agency can, or should, treat the relevant appropriation as having been increased in line
with a relevant real or notional transaction.
Chief Executive's ability to issue directions in relation to the delegation of
powers of functions: section 53
37. Item 11 inserts a new subsection 53(1AA) into the FMA Act. The proposed
subsection 53(1AA) clarifies the ability of a Chief Executive of an Agency to issue
directions relating to powers or functions of the Chief Executive delegated directly by that
Chief Executive to an official under the FMA Act.
38. Item 12 replaces the existing subsection 53(2) with a revised provision that clarifies
the situation where a Chief Executive has been delegated powers or functions by the
Finance Minister or the Treasurer (under sections 62 or 62A of the FMA Act respectively)
and the Chief Executive wishes to sub-delegate such a power or function to an official (the
second delegate). In this situation, the Chief Executive must:
· first, give any directions to the second delegate that correspond to any
directions given to the Chief Executive by the Finance Minister or the
Treasurer; and
· second, may give other directions to any second delegate.
Replacement Explanatory Memorandum to the 8
Financial Framework Legislation Amendment Bill (No.1) 2007
Saving, application and transitional provisions
39. Item 13 specifies that a net appropriation agreement that had been entered into under
section 52 of the Auditor-General Act or section 31 of the FMA Act, before the
commencement of the amendments in this FFLA Bill, remains in effect even after the
commencement of Item 1 or Item 8.
40. This will allow for the replacement of bi-lateral net appropriation agreements to occur
on a staged basis, if necessary. Accordingly, the current arrangements will continue until:
· Cancelled by the Finance Minister, in accordance with the existing subsection
31(4) of the FMA Act;
· in the case of the Auditor-General, ended by agreement between the Auditor-
General and the Finance Minister in accordance with the existing section 52
of the Auditor-General Act; or
· a regulation is made that prescribes for relevant Agency receipts to be
retained by an Agency or Agencies, in a manner that would be inconsistent
with the ongoing operation of any pre-existing bi-lateral net appropriation
agreement(s).
41. Item 14 specifies that the amendment made by Item 4 to section 28 (Repayments by
the Commonwealth) applies to amounts of money received by the Commonwealth before or
after the commencement date of Item 4. This ensures the smooth transition to the new
arrangements, in that the special appropriation under subsection 28(2) can be relied upon to
make a repayment by the Commonwealth even in relation to an amount that had been
received by an Agency before the commencement of the new section 28.
42. Item 15 specifies that the amendment made by Item 6 to section 30 (Repayments to the
Commonwealth) applies to amounts of money paid by the Commonwealth before or after
the commencement date of Item 6. As with the description of Item 14 above, this ensures
the smooth transition to the new arrangements. In this situation, an amount repaid to the
Commonwealth before commencement can be credited to the relevant appropriation by the
Agency, with the timing of the crediting as determined by the new section 32A.
43. Item 16 specifies that the amendment made by Item 7 to section 30A (Appropriations
to take account of recoverable GST) applies to payments that occur after the
commencement date of Item 7.
44. Item 17 specifies that section 32 of the FMA Act, as in force immediately prior to the
commencement of Item 9, continues in force in relation to a change of function that
occurred before the commencement date of Item 9.
45. Item 18 specifies that a direction from a Chief Executive to an official, in force under
subsection 53(2) of the FMA Act, as in force immediately prior to the commencement of
Item 18, remains in force after the commencement date of Item 18, as if it were a direction
given under subsection 53(2) after the commencement date of Item 18.
Consequential amendments to the Legislative Instruments Act 2003
46. Item 19 is an amendment to subsection 44(2) of the LI Act that is required as a result
of the amendments in Item 8 to section 31 of the FMA Act, which provides for the making
Replacement Explanatory Memorandum to the 9
Financial Framework Legislation Amendment Bill (No.1) 2007
of net appropriation agreements. The reference in the LI Act to agreements made under
section 31 would therefore, be redundant.
47. Item 20 is an amendment to subsection 44(2) of the LI Act that is required as a result
of the amendments in Item 9 to section 32 of the FMA Act, which provides for the giving
of directions after transfers of Agency functions. The current references in the LI Act to
directions given under section 32 would, therefore, be redundant.
48. Item 21 is an amendment to subsection 54(2) of the LI Act that is required as a result
of the amendments in Item 8 to section 31 of the FMA Act, which provides for the making
of agreements. The current references in the LI Act to agreements made under section 31
would, therefore, be redundant.
49. Item 22 is an amendment to subsection 54(2) of the LI Act that is consequential to the
amendments made by Item 9 to section 32 of the FMA Act which provides for the giving of
directions. The current references in the LI Act to directions given under section 32 would,
therefore, be redundant.
Replacement Explanatory Memorandum to the 10
Financial Framework Legislation Amendment Bill (No.1) 2007
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