House of Representatives

Explanatory Memorandum

(Circulated by authority of the Minister for Finance and Administration, Senator the Honourable Nick Minchin)

Notes on clauses

11. The structure of the FFLA Bill comprises four clauses that then refer to three schedules containing the substantive amendments to other Acts. These notes describe the four clauses and their effect.

Clause 1: Short Title

12. This clause provides that when the FFLA Bill is passed it may be cited as the Financial Framework Legislation Amendment Act 2004.

Clause 2: Commencement

13. This clause provides that most of the items in the schedules in the FFLA Bill will, if passed, commence on the day on which the Financial Framework Legislation Amendment Act 2004 receives Royal Assent. Exceptions are:

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the abolition of the Rural Transactions Centres Account and the Television Fund Account, to commence on 1 July 2005. These are Special Accounts established under the Telstra Corporation Act 1991; and

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the saving of agreements made under the Telstra Corporation Act 1991 in relation to the Rural Transactions Centres Account and the Television Fund Account, to commence on 1 July 2005; and

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the amendments to the Aboriginal and Torres Strait Islander Act 2004 do not commence if Schedule 1 of the Aboriginal and Torres Strait Islander Commission Amendment Act 2004 Act does not commence.1

Clause 3: Schedules

14. This clause provides that the amendments and repeals of Acts are contained in three schedules:

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Schedule 1 comprises amendments that relate to the FMLA Act 99 and Special Accounts. The schedule is divided into two parts.

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Part 1 of Schedule 1 comprises the removal of references to the Loan Fund. The FMLA Act 99 abolished the Loan Fund.

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Part 2 of Schedule 1 includes amendments relating to Special Accounts. The FMLA Act 99 abolished the Reserved Money Fund (RMF) and replaced components of the RMF with Special Accounts. Part 2 of Schedule 1 also includes the replacement of references to paid "into the Consolidated Revenue Fund" (CRF) with references to paid "to the Commonwealth" to reflect the adoption of a self-executing CRF that underpinned the FMLA Act 99.

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Schedule 2 covers other amendments. Most of these transfer powers from the Treasurer to the Finance Minister to approve certain financial activities of entities that are legally separate from the Commonwealth.

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Schedule 3 covers the repeal of Acts. Most of these Acts were identified because they would, if they were not redundant, have required amendment in Schedule 1.

Clause 4: Saving of matters in Part 2 of Schedule 1

15. This clause relates to Part 2 of Schedule 1 of the FFLA Bill, which amends provisions dealing with Special Accounts and/or which contain references to money paid to the CRF. The clause provides that a decision, action or other thing made under a provision that is amended in Part 2 of Schedule 1, and that has effect immediately before the commencement of the Financial Framework Legislation Amendment Act 2004, has a corresponding effect as if it had been made under the provision as amended in Part 2 of Schedule 1.

16. The effect of this saving provision is to ensure that the clarification of statutory wording proposed by the FFLA Bill does not affect any decisions actions or other things made under the previous wording.