Explanatory Memorandum
(Circulated by authority of the Treasurer, the Hon Ralph Willis, MP)Chapter 5 - Crediting of deposits
Overview
5.1 This chapter sets out the machinery in relation to what happens to an amount that has been deposited to the Reserve in accordance with clauses 34 and 35 of the Bill.
Explantion of the provisions
5.2 Where a person pays an amount to the Commissioner as a deposit to the Reserve the deposit is first credited to the Consolidated Revenue Fund. This is in accordance with section 18 of the Financial Management and Accountability Act 1995 and also in accordance with section 81 of the Constitution (for an explanation of the operation of section 81 of the Constitution refer to paragraph 2.8). The amount is initially credited to the Consolidated Revenue Fund. From the Consolidated Revenue Fund an amount equal to the deposit is credited to the Reserve and then credited to the individual's account within the Reserve. The following flow chart explains how deposits are credited. [Clauses 34 and 35 of Part 5]
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