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This is a Bill, not an Act. For current law, see the Acts databases.
FINANCIAL MANAGEMENT AMENDMENT BILL 2003 (NO 2)
2003
THE LEGISLATIVE ASSEMBLY
FOR THE AUSTRALIAN CAPITAL
TERRITORY
(As presented)
(Treasurer)
Financial
Management Amendment Bill 2003 (No 2)
Contents
Page
2003
THE LEGISLATIVE ASSEMBLY
FOR THE AUSTRALIAN CAPITAL
TERRITORY
(As presented)
(Treasurer)
Financial Management
Amendment Bill 2003 (No 2)
A Bill for
An Act to amend the Financial Management Act 1996
The Legislative Assembly for the Australian Capital Territory enacts as
follows:
This Act is the Financial Management Amendment Act 2003 (No
2).
This Act commences on the day after its notification day.
Note The naming and commencement provisions automatically commence
on the notification day (see Legislation Act, s 75 (1)).
This Act amends the Financial Management Act 1996.
substitute
Part 2 Budget
management
Division 2.1 Appropriations and
budgets
substitute
11 Territory budgets
(1) The proposed budget for the Territory for a financial year presented
to the Legislative Assembly under section 10 (a) must include—
(a) a financial policy objectives and strategies statement under section
11A for the financial year; and
(b) a statement of the economic or other assumptions used to make the
budget estimates; and
(c) a statement about the sensitivity of the budget estimates to changes
in the economic or other assumptions; and
(d) a statement of the risks, quantified if possible, that may affect the
budget estimates, including contingent liabilities; and
(e) the financial statements required under the financial management
guidelines.
(2) The proposed budget must be prepared in a form that assists a
comparison, for each appropriation unit, between the budget for the Territory
for the previous financial year and the proposed budget.
(3) The financial statements included in the proposed budget under
subsection (1) (e) must include budget estimates, for each appropriation unit,
for each of the next 3 financial years; and
(4) The proposed budget must be prepared taking into
account—
(a) the principles of responsible fiscal management; and
(b) the object of providing a basis for sustainable social and economic
services and infrastructure fairly to all ACT residents.
(5) The proposed budget may depart from the principles of responsible
fiscal management, but if it does so—
(a) any departure must be temporary; and
(b) the Treasurer must present to the Legislative Assembly, when the first
Appropriation Bill for the financial year is presented to the Legislative
Assembly, a statement setting out—
(i) the reasons for the departure; and
(ii) the approach intended to be taken to return to the principles;
and
(iii) when the principles are expected to be returned to.
(6) In this section:
fiscal risks include the following:
(a) risks from the level of the Territory’s general government
sector debt;
(b) commercial risks from ownership of corporations and public
enterprises;
(c) risks from changes in the structure of the Territory’s tax base;
(d) risks from management of the Territory’s assets and
liabilities.
principles of responsible fiscal management means the
following principles:
(a) ensuring that the total liabilities of the Territory are at prudent
levels to provide a buffer against factors that may impact adversely on the
level of total Territory liabilities in the future, and ensuring that, until
prudent levels have been achieved, the total operating expenses of the Territory
in each financial year are less than its operating revenue levels in the same
financial year;
(b) when prudent levels of total Territory liabilities have been achieved,
maintaining the levels by ensuring that, on average, over a reasonable period of
time, the total operating expenses of the Territory do not exceed its operating
revenue levels;
(c) achieving and maintaining levels of Territory net worth to provide a
buffer against factors that may impact adversely on levels of Territory net
worth in the future;
(d) managing prudently the fiscal risks of the Territory;
(e) pursuing spending and taxing policies that are consistent with a
reasonable degree of stability and predictability in the level of the tax
burden;
(f) giving full, accurate and timely disclosure of financial information
about the activities of the government and its agencies.
11A Financial policy objectives and strategies
statement
(1) The purposes of a financial policy objectives and strategies statement
included in a proposed budget under section 11 (1) (a) are—
(a) to make transparent the government’s financial strategies;
and
(b) to establish a benchmark for evaluating the government’s conduct
of financial policy.
(2) The statement must be based on the principles of responsible fiscal
management.
(3) The statement must—
(a) state the government’s long-term financial objectives within
which financial policy for the financial year and the next 3 financial
years will be framed; and
(b) explain the broad strategic priorities on which the budget is based;
and
(c) state the key financial measures that the government has identified as
being important and against which financial policy will be set and assessed;
and
(d) state, for the financial year and the next 3 financial
years—
(i) the government’s short-term financial objectives; and
(ii) the targets for each stated key financial measure; and
(e) explain how the financial objectives and strategic priorities
mentioned in paragraphs (a), (b) and (d) relate to the principles of responsible
fiscal management; and
(f) state the reasons for any changes from the previous financial policy
objectives and strategies statement.
(4) In this section:
principles of responsible fiscal management—see section
11 (6).
insert
Division 2.2 Budget reviews and pre-election
updates
20A Budget review
(1) The Treasurer must prepare a budget review for each financial
year.
(2) The Treasurer must present the budget review for a financial year to
the Legislative Assembly not later than 15 February in the financial
year.
Note This is the same day as financial statements for the second
quarter of the financial year are required to be presented under section 26
(Periodic financial statements).
(3) However, if a sitting day does not fall in that year on or before
15 February, the Treasurer must give copies of the budget review to each
member of the Legislative Assembly on or before that day.
20B Purpose and contents of budget
review
(1) The purpose of the budget review for a financial year is to give
updated information to allow the assessment of the government’s financial
performance against the financial policy objectives and strategies set out in
the financial policy objectives and strategies statement for the Territory
budget for the financial year.
(2) The budget review for a financial year must be based on the financial
policy objectives and strategies statement for the Territory budget for the
financial year.
(3) The budget review for a financial year must—
(a) include updated financial statements required under the financial
management guidelines for the general government sector for the financial year;
and
(b) include whole-of-year results for the previous financial year, the
budget for the financial year, the estimated financial position of the Territory
at the end of the financial year and updated budget estimates for each of the
next 3 financial years; and
(c) include a review of the financial policy objectives and strategies
statement included in the budget for the financial year that satisfies the
requirements of section 11A (2) and (3); and
(d) state the date as at when the review was done.
(4) However, if particular information required to be included in the
budget review is unchanged from information set out in full in the budget for
the Territory under section 11 (1) for the financial year, the review may
instead summarise the information and state that it is unchanged from that set
out in the budget.
(5) For subsection (3):
budget, for a financial year, means the budget for the year
presented to the Legislative Assembly under section 10 (a) (Budget papers) and,
if that budget has been amended under this Act, the budget as amended.
20C Pre-election budget update
(1) At least 30 days before the polling day for an ordinary election, the
chief executive must prepare a pre-election budget update and give it to the
parliamentary counsel for notification.
(2) At least 20 days before the polling day for an election mentioned in
the Australian Capital Territory (Self-Government) Act 1988 (Cwlth),
section 16 (Dissolution of Assembly by Governor-General) or section 48
(Resolution of no confidence in Chief Minister), the chief executive must
prepare a pre-election budget update and give it to the parliamentary counsel
for notification.
(3) A pre-election budget update is a notifiable instrument.
Note A notifiable instrument must be notified under the Legislation
Act.
(4) In this section:
ordinary election—see the Electoral Act 1992,
dictionary.
polling day—see the Electoral Act 1992,
dictionary.
20D Purpose and contents of pre-election budget
update
(1) The purpose of a pre-election budget update for an election
is—
(a) to allow the assessment of the government’s financial
performance against the financial policy objectives and strategies set out in
the latest financial policy objectives and strategies statement; and
(b) to give the electorate an accurate picture of the Territory’s
financial position before the election.
(2) A pre-election budget update must be based on the latest financial
policy objectives and strategies statement.
(3) A pre-election budget update for an election must
include—
(a) updated financial statements required under the financial management
guidelines for the financial year in which the election is to be held;
and
(b) updated budget estimates for the general government sector, public
trading enterprises and the Territory for that financial year and for each of
the next 3 financial years; and
(c) a statement of the economic or other assumptions used in preparing the
updated financial statements and budget estimates; and
(d) a statement about the sensitivity of the updated financial statements
and budget estimates to changes in the economic or other assumptions;
and
(e) a statement of the risks, quantified if possible, that may affect the
economic or other assumptions, including—
(i) contingent liabilities; and
(ii) publicly announced government commitments that are not yet included
in the updated financial statements and budget estimates.
(4) Information in the pre-election budget update must—
(a) take into account government decisions and other circumstances that
may have material effect on the financial statements and budget estimates;
and
(b) state the date as at when the updating was done.
(5) However, if particular information required to be included in the
pre-election budget update is unchanged from information set out in full in the
latest financial statements, the budget estimates mentioned in section 11
(Territory budgets) or budget review, the pre-election budget update may instead
summarise the information and state that it is unchanged from that set out in
the financial statements, budget estimates or budget review.
7 Audit
of annual financial statementsNew section
24 (3) and (4)
insert
(3) Despite subsections (1) and (2), if an ordinary election is to be held
in the year after the end of the financial year—
(a) the Treasurer must give the auditor-general a copy of the annual
financial statements of the Territory for the financial year in sufficient time
for the auditor-general to give an audit opinion about the statements within 3
months after the end of the financial year; and
(b) the auditor-general must give an audit opinion to the Treasurer within
3 months after the end of the financial year.
(4) In this section:
ordinary election—see the Electoral Act 1992,
dictionary.
8 Presentation
of annual financial statements to Legislative
AssemblySection 25
omit
If the
substitute
(1) If the
insert
(2) If the Treasurer receives, under section 24 (3) (b), an audit opinion
about annual statements, the Treasurer must give to each member of the
Legislative Assembly, within 7 days after receiving the opinion—
(a) a copy of the annual financial statements; and
(b) a copy of the audit opinion.
Endnote
Republications of amended laws
For the latest republication of amended laws, see
www.legislation.act.gov.au.
© Australian Capital Territory
2003
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