Financial Management Act 1996

This Act is the Financial Management Act 1996.

This Act is subject to the Territory Superannuation Provision Protection Act 2000.

The dictionary at the end of this Act is part of this Act.

Note 1 The dictionary at the end of this Act defines certain terms used in the Act, and includes references (signpost definitions) to other terms defined elsewhere in this Act or in other legislation.

For example, the signpost definition ‘superannuation appropriation—see the Territory Superannuation Provision Protection Act 2000, dictionary.’ means that the term ‘superannuation appropriation’ is defined in that dictionary and the definition applies to this Act.

Note 2 A definition in the dictionary (including a signpost definition) applies to the entire Act unless the definition, or another provision of the Act, provides otherwise or the contrary intention otherwise appears (see Legislation Act, s 155 and s 156).

A note included in this Act is explanatory and is not part of the Act.

Note See the Legislation Act, s 127 (1), (4) and (5) for the legal status of notes.

The Treasurer may declare that a stated body is not a territory authority for this Act or a stated provision of this Act.

A declaration is a notifiable instrument.

Unless the contrary intention appears, the provisions of parts 2 to 5 apply to—

the Office of the Legislative Assembly as if—

a reference in those provisions to a directorate included a reference to the office; and

a reference in those provisions to the responsible Minister of a directorate were a reference to the Speaker; and

a reference in those provisions to the responsible director‑general of a directorate included a reference to the clerk of the Legislative Assembly; and

an officer of the Assembly as if—

a reference in those provisions to a directorate included a reference to the officer; and

a reference in those provisions to the responsible Minister of a directorate were a reference to the Legislative Assembly; and

a reference in those provisions to the responsible director‑general of a directorate included a reference to the officer.

Division 3.2 (Financial reports and performance statements of directorates) applies to the auditor-general as if a reference in that division to the auditor-general were a reference to the independent auditor engaged under the Auditor-General Act 1996, section 31 (Independent auditor).

Note Div 3.2, s 30A and s 30E do not apply to the auditor-general (see s 30A (3) and s 30E (4)).

For section 20AB and section 20AC, a reference to an officer of the Assembly, in relation to the electoral commissioner, includes the other members of the electoral commission.

Note The electoral commissioner is an officer of the Assembly (see Legislation Act, dict, pt 1). All members of the electoral commission are independent officers of the Legislative Assembly (see Electoral Act 1992, s 6A).

Section 31 (2) (c) does not apply to—

the Office of the Legislative Assembly; and

an officer of the Assembly.

Part 2 Budget management

Division 2.1 Appropriations and budgets

Subdivision 2.1.1 Appropriations and budgets—generally

Except as otherwise provided by a resolution of the Legislative Assembly, the first Appropriation Bill relating to a financial year must be introduced into the Legislative Assembly not later than 3 months after the beginning of the financial year.

No payment of public money must be made otherwise than in accordance with an appropriation.

If, before the end of a financial year, no Act other than this Act has been passed appropriating public money to meet the requirements of the next financial year, the Treasurer may pay the amounts necessary to meet those requirements subject to the following provisions:

the authority of the Treasurer under this section ceases on the commencement of the first Appropriation Act for the next financial year;

on that commencement all payments made under this section for the next financial year are taken for all purposes to have been paid out of money appropriated by that Act;

for the 2021-22 financial year—the payments made under this section for any purpose must not exceed, in total, 75% of the amount appropriated by Appropriation Acts for the 2020-21 financial year for that purpose;

for any other financial year—the payments made under this section for any purpose must not exceed, in total, 1/2 of the amount appropriated by Appropriation Acts for the immediately previous financial year for that purpose.

In this section:

purpose means a purpose that could reasonably be considered to be within the usual responsibilities and ordinary business of an entity.

This section applies if—

an amount is proposed to be appropriated by a bill for the first Appropriation Act for a financial year for a new purpose or a new entity; and

the bill has not yet been passed by the Legislative Assembly.

The Treasurer may, in writing, authorise an amount (a temporary advance) for expenditure for the new purpose or new entity if the Treasurer is satisfied that there is an immediate requirement for the expenditure.

A temporary advance must be authorised from the amount paid by the Treasurer under section 7 for section 18 (Treasurer’s advance).

The total amount of temporary advances authorised must not exceed 50% of the amount paid by the Treasurer under section 7 for section 18.

On the commencement of the first Appropriation Act for the financial year—

the temporary advance ceases; and

the temporary advance is taken to have been paid out of money appropriated by that Act; and

the amount appropriated for section 18 for the financial year is taken to be restored by the amount of the temporary advance; and

if the amount proposed to be appropriated under subsection (1) (a) is not passed in that Act—the temporary advance is taken to have been authorised from the appropriation for section 18 for the financial year.

If the Treasurer authorises a temporary advance, the Treasurer must attach the authorisation to the next financial statement presented to the Legislative Assembly.

Note For the presentation of financial statements, see s 26.

In this section:

new entity means an entity that has a purpose not previously included, or not reasonably considered to be, within the usual responsibilities and ordinary business of another entity.

new purpose means a purpose other than a purpose that could reasonably be considered to be within the usual responsibilities and ordinary business of an entity.

An Appropriation Act may make separate appropriations in relation to each directorate for—

any controlled recurrent payments to be provided to the directorate; and

any capital injection to be provided to the directorate; and

any payments to be made by the directorate on behalf of the Territory.

An Appropriation Act may make separate appropriations in relation to a territory authority or territory-owned corporation for—

any controlled recurrent payments to be provided to the authority or corporation; and

any capital injection to be provided to the authority or corporation.

There must be a separate Appropriation Act for an appropriation for the Office of the Legislative Assembly.

Any appropriation for an officer of the Assembly must be contained in an Appropriation Act for an appropriation for the Office of the Legislative Assembly.

An appropriation for controlled recurrent payments may be expressed to be made for net controlled recurrent payments.

Despite section 6 (Necessity for appropriation), if an appropriation for a directorate is stated to be made for net controlled recurrent payments, the directorate may apply the following in paying the expenses and liabilities of the directorate:

the payments it is entitled to receive for providing goods and services, other than controlled recurrent payments under an Appropriation Act;

the value of the input tax credits to which it is entitled for taxable supplies in relation to controlled recurrent payments.

If the appropriations made by an Appropriation Act for a directorate do not state an amount, or state a ‘0’ appropriation, for controlled recurrent payments, the appropriations have effect as if they included an appropriation for controlled recurrent payments for the directorate at no net cost to the Territory.