Jacinta Collins (Victoria, Australian Labor Party, Parliamentary Secretary for School Education and Workplace Relations) Share this | Hansard source

I thank the Senate and those who have contributed to the debate on the Financial Framework Legislation Amendment Bill (No. 1) 2012. The bill would if enacted amend four acts to strengthen and clarify aspects of the Commonwealth's financial framework and repeal two acts that include special appropriations, which are now redundant.

I wish to offer a point of clarification on the proposed provisions for set-out arrangements under item 10 of schedule 4 of the bill, which would introduce a new section 35 to the FMA framework. It is the intention of the government to institute a consultative process around the use of this provision. The minister will consult with members of the parliament on this process. For example, there is regulation-making power linked to the proposed section 35 included in the bill through the proposed amendment to section 65 of the FMA Act which is set out in item 13 of schedule 4 of the bill. Such regulations could potentially use an approach that already exists for an act of grace or debt waiver provisions, such as to specify that a decision maker must have available an advisory committee report where the amount involved exceeds a prescribed limit.

I would like to put on the record some further information in terms of the use of this provision for an amount that the Commonwealth merely asserts as a debt. If Senator Cormann is happy, I am happy to incorporate the rest of my speech.

Leave granted.

The speech read as follows—

The amount in question must be established as a debt owing before the proposed section 35 could be applied.

The set-off provision could not be applied where:

In general, this Bill will help with the preparation of the Budget, such as through the changes to the Commonwealth Authorities and Companies Act 1997, and make useful clarifications, such as the role of the Auditor-General in auditing companies controlled by the Commonwealth.

I commend the Bill.