Richard Colbeck (Tasmania, Liberal Party, Parliamentary Secretary to the Minister for Finance and Administration) Share this | Hansard source

The Financial Framework Legislation Amendment Bill (No. 2) 2005 aims to maintain the currency of the financial and governance framework of the Commonwealth public sector and it continues the work achieved in the Financial Framework Legislation Amendment Act 2005. As we have heard, the bill is divided into four schedules. Schedule 1 proposes amendments to nine acts that establish individual special accounts. These amendments cover special accounts including the Aboriginal and Torres Strait Islander Land Account, the Aboriginal Advancement Account, the ARC Research Endowment Account, the Child Support Account, the Industrial Chemicals Account, the National Blood Account, the Medical Research Endowment Account and the Natural Resources Management Account. Most of the amendments covering special accounts are of the same type as the amendments in schedule 1 of the Financial Framework Legislation Amendment Act.

Schedule 2 of the bill proposes amendments to the Safety, Rehabilitation and Compensation Act 1988 to authorise Comcare to pay workers compensation benefits to employees either through Commonwealth employers or direct to employees. The SRC Act currently authorises compensation benefits only to be paid directly to employees. The proposed amendments reflect current and best practice to ensure there is seamless transition for the employee between payment of a salary et cetera and payment of compensation. The amendments also give effect to the conclusion of the Joint Committee of Public Accounts and Audit in its report 395, Inquiry into the draft Financial Framework Legislation Amendment Bill, supporting amendments to align the act with current good practice whereby Comcare makes compensation payments to agencies.

Schedule 3 of the bill proposes amendments to seven acts that are not included in schedules 1 or 2, and I will highlight the main amendments proposed in schedule 3. The bill proposes amendments to the FMA Act to extend to law enforcement agencies access to the modifications to the FMA Act that currently apply to intelligence or security agencies. These modifications are set out in the Financial Management and Accountability Regulations 1997—the FMA regulations. Some law enforcement agencies need to undertake sensitive activities that are similar in nature to those of intelligence and security agencies. It is therefore appropriate that they be able to access the same modified application of the FMA Act for those sensitive activities subject to ministerial agreement and consideration by parliament through amendment to the FMA regulations that would prescribe a law enforcement agency for this purpose.

Amendments to the Public Accounts and Audit Committee Act 1951 are proposed to correct, update and express in clearer language previous provisions. The amendments cover such matters as the inclusion of non-gender specific language, sectional committees, evidence taken in public or in private and payment of allowances. The amendments do not alter the intent of the existing provisions. Amendments to the Native Title Act 1993 are proposed to transfer from the Treasurer to the finance minister the power to approve the investments of surplus money by an Aboriginal and Torres Strait Islander body and to provide the finance minister with a delegation power in relation to that approval power. The amendment proposed to the Australian Institute of Marine Science Act 1972 provides the finance minister with a delegation power in relation to his existing powers to approve borrowing by and guarantees relating to the Australian Institute of Marine Science. The amendments proposed to the Native Title Act and the Australian Institute of Marine Science Act align these acts with amendments made to 25 acts by the FFLA Act.

Schedule 3 also proposes amendments to the Superannuation Act 1976 and the Public Service Act 1999 to clarify that the appropriation authority for an act of grace payment or payment to a person because of special circumstances arising out of employment by the Commonwealth is not provided in these acts. The appropriation authority would generally be an agency’s annual appropriation providing the payment relates to some matter that has arisen in the course of the agency’s administration.

Schedule 4 of the bill proposes the repeal of two acts: the Employment Services Act 1994 and the Loan Act 1977. With the commencement of the employment services market in 1998, the case management system set up by the Employment Services Act is no longer required and the Employment Services Regulatory Authority, which is established in that act, has become non-operational. Therefore, the Employment Services Act is now redundant. The Loan Act is also redundant. It authorises the Treasurer to borrow a specified amount of money during the financial year ended 30 June 1978. I commend the bill to the Senate.

Question agreed to.

Bill read a second time.