Financial Legislation Amendment and Repeal Act 2006

Commencement day. Defined in Schedule 2 clause 1(1) as the day on which the Schedule comes into operation. This is the pivot point: instruments and accounts that had effect “immediately before the commencement day” are the ones that continue in force in their recharacterised form. The commencement day itself was fixed by proclamation as 1 February 2007 (see compilation table). Different provisions of the Act could be proclaimed separately, but sections 3 and 19 and Schedule 2 were tied to the coming into operation of the FM Act.

FAA Act and FM Act. The Act uses these defined abbreviations per Schedule 2 clause 1(1). The FAA Act is the Financial Administration and Audit Act 1985 which is repealed by section 3. The FM Act is the Financial Management Act 2006 which, together with the Auditor General Act 2006, is the principal legislation that replaces the FAA Act. The Act treats the repeal and replacement as a split: Part II of the FAA Act (financial management and administration) is treated as repealed and re-enacted by the FM Act, and Part III (audit) by the Auditor General Act (see Schedule 2 clause 2(1)(a) and (b)). This characterisation is important because it activates the default transitional provisions of the Interpretation Act 1984 (sections 16, 36 and 38) which deal with the effect of repeals and substitutions.

Consolidated Fund and Consolidated Account. The Constitution Act 1889 section 64 originally established the Consolidated Fund. The new FM Act and related amendments replaced it with the Consolidated Account. Clause 13 of Schedule 2 provides that references in written laws or documents to the Consolidated Fund may, where context requires, be read as references to the Consolidated Account. This avoids the need to amend every individual instrument that mentions the fund.

Trust accounts, special purpose accounts, and operating accounts. Under the FAA Act, the Trust Fund and trust accounts were a key feature. The FM Act replaces these with a system of “special purpose accounts” (Treasurer’s special purpose accounts and agency special purpose accounts). Schedule 2 clauses 4, 5, and 6 provide a mapping: old trust accounts become special purpose accounts; old operating accounts (established for departmental operations under FAA Act s 15B) become agency special purpose accounts under FM Act s 16(1)(a). Trust statements approved under the FAA Act continue as special purpose statements or trust statements under the FM Act, unless the Treasurer directs otherwise. One special case is the Hospital Fund under the Hospital Fund Act 1930: the trust statement for that fund continues but is treated as if FM Act s 17(1)(a) were amended to refer to an agency special purpose account operated by the agency that is referred to in s 16(1)(a) , a technical fix to ensure the Hospital Fund’s statement fits the new nomenclature.

Treasurer’s Instructions. Under the FAA Act s 58, the Treasurer issued instructions governing financial administration. These continue in force under the FM Act s 78 (clause 10(1)), along with any exemptions provided by those instructions or by written direction of the Treasurer (clause 10(2)). However, there is a critical limitation: a continuing instruction or exemption does not have effect to the extent of any inconsistency with the FM Act itself (clause 10(3)). This means agencies cannot rely on an old instruction that contradicts the new statutory framework.

Transitional regulations and power to amend subsidiary legislation. Clause 14 grants the Governor a broad power to make transitional regulations for any matter or issue not sufficiently provided for in the Schedule. These regulations can be retrospective (clause 14(2)), but with a protective proviso: they cannot prejudice any person (other than the State or an authority) in respect of rights existing before publication, nor impose liabilities on any person (other than the State or an authority) for anything done or omitted before publication (clause 14(3)). Clause 15 gives the Governor a standalone power, on the Treasurer’s recommendation, to amend subsidiary legislation made under any Act, provided the amendment is necessary or desirable as a consequence of the FM Act, Auditor General Act, or this Act. This power is not limited by the transitional period; it is an ongoing power to clean up references in regulations, rules, by-laws and the like without requiring amendment via the parent Act’s procedure.

The Act primarily affects government agencies, departments, statutory authorities, and officers who had financial arrangements, instruments, or approvals under the repealed FAA Act. Specifically:

• Departments of the Western Australian Government. Their operating accounts under FAA Act s 15B become agency special purpose accounts under the FM Act (clause 6). Their existing bank accounts authorised by the Treasurer continue under the FM Act (clause 7). Any trust accounts they operated continue as special purpose accounts (clause 4). They also must follow Treasurer’s Instructions that continue in force, subject to consistency with the FM Act (clause 10).

• The Treasurer of Western Australia. The Treasurer’s determinations (on moneys creditable to the Consolidated Fund, prescribed revenue, investment income) continue as determinations of equivalent effect under the FM Act (clauses 3, 8, 9). The Treasurer may give directions altering the continuation of trust statements (clause 5(1)) and may recommend amendments to subsidiary legislation (clause 15). The Treasurer’s Instructions continue but only to the extent consistent with the FM Act (clause 10(3)). The Act also continues authorisations under Treasurer’s Advance Authorisation Acts as authorisations under FM Act sections 27 or 28 (clause 12).

• The Auditor General. While this Act does not deal directly with the Auditor General’s powers, the recognition that Part III of the FAA Act (audit) is repealed and re-enacted by the Auditor General Act 2006 (clause 2(1)(b)) means that references to the FAA Act in audit-related documents may need to be read as references to the Auditor General Act (clause 11). The Auditor General will be affected indirectly because the transitional provisions maintain the continuity of accounts and financial statements that are subject to audit.

• Agencies that operate special purpose accounts. Trust accounts under the old regime continue as special purpose accounts. The agency responsible for such accounts must now comply with the FM Act’s requirements for special purpose accounts, including any new reporting or approval processes.

• Any person or entity referenced in documents or instruments that cite the FAA Act. Clause 11 allows references to the FAA Act in any written law or other document to be read as a reference to the FM Act or Auditor General Act, as context requires. This could affect contracts, deeds, trust deeds, and statutory instruments that mention the FAA Act. While the clause uses the word “may” (discretionary), it provides a statutory basis for interpreting those references, reducing ambiguity.

• Private parties with rights under the old regime. The Act does not directly create or abolish private rights, but the transitional regulation power (clause 14) expressly prohibits retrospective regulations that prejudicially affect any person (other than the State) in respect of pre-existing rights, or that impose liabilities for past acts. This is a safeguard for private parties , for example, a contractor with rights under a financial arrangement that referenced the FAA Act.

• Subsidiary legislation drafters and users. The Governor’s power under clause 15 to amend subsidiary legislation can affect anyone subject to regulations, rules, by-laws, or other subordinate instruments that reference FAA Act concepts. The power is not time-limited and can be exercised repeatedly, meaning affected persons cannot assume that outdated references in subsidiary legislation will persist.

• The Hospital Fund under the Hospital Fund Act 1930. This specific fund is the subject of a bespoke transitional rule (clause 5(2)) which treats its trust statement as a special purpose statement with a modified reading of FM Act s 17(1)(a). The Hospital Fund’s governance structure is thus preserved in the transition.

The Act imposes few new duties; its primary function is to preserve rights and obligations that existed under the repealed FAA Act while mapping them onto the new FM Act and Auditor General Act. The key duties and rights are:

Duty to treat continuing instruments as if made under the new Acts. Agencies and the Treasurer must treat a determination under FAA Act s 6(3)(d) as a determination under FM Act s 8(3)(a) (clause 3). Similarly, trust accounts continue as special purpose accounts (clause 4); operating accounts as agency special purpose accounts (clause 6); bank accounts as maintained under FM Act s 13 (clause 7); prescribed revenue determinations as prescribed receipts determinations (clause 8); investment income determinations as FM Act s 38(5) determinations (clause 9); and Treasurer’s Instructions as FM Act s 78 instructions (clause 10). This is a duty of recognition and continuity: the forms may change, but the substantive effect persists.

Right of the Treasurer to direct otherwise on trust statements. Clause 5(1) says a trust statement continues to have effect “unless the Treasurer directs otherwise”. This gives the Treasurer a unilateral power to override a continuing trust statement, effectively cancelling the transitional mapping for that particular instrument.

Duty to comply with the FM Act where there is inconsistency. Even though Treasurer’s Instructions and exemptions continue, clause 10(3) provides that they do not have effect to the extent of any inconsistency with the FM Act. This imposes an implied duty on agencies to identify such inconsistencies and prioritise the FM Act. This may require agencies to review continuing instructions against the new Act.

Right to rely on the transitional continuity. Agencies and third parties can rely on the fact that their existing financial arrangements have not been disrupted. For example, a bank account authorised under the FAA Act continues to be valid; there is no need to reapply for authorisation under the FM Act. This reduces transitional compliance costs.

Power to make transitional regulations. The Governor has the right to make regulations dealing with transitional matters not sufficiently covered by Schedule 2 (clause 14(1)). This includes the right to make retrospective regulations (clause 14(2)), but with a limitation: such regulations cannot prejudice any person other than the State in respect of rights existing before publication, nor impose liabilities on any person other than the State for prior acts or omissions (clause 14(3)). This creates a right of protection for private persons against adverse retrospective regulation.

Power to amend subsidiary legislation. The Governor, on the Treasurer’s recommendation, may amend subsidiary legislation made under any Act (clause 15(1)). This power is not limited to a transitional period; it continues indefinitely. The Treasurer’s recommendation must be based on a view that each amendment is necessary or desirable as a consequence of the FM Act, Auditor General Act, or this Act (clause 15(2)). This provides a mechanism to update regulations, by-laws, and other subordinate instruments without going through the parent Act’s full amendment process. Entities subject to subsidiary legislation have no right to prevent such amendments, but the power is constrained by the Treasurer’s condition.

Right to read references to the FAA Act as references to the new Acts. Clause 11 provides that a reference in a written law or document to the FAA Act may be read as a reference to the FM Act or the Auditor General Act, or to both, as context requires. This is a permissive rule (“may”) that allows interpreters to avoid nonsense outcomes, but it does not create an automatic amendment. Similarly, clause 13(2) allows references to the Consolidated Fund to be read as references to the Consolidated Account.

No new audit or reporting obligations under this Act. The Act imposes no new duties to produce reports, seek approvals, or pay fees. The new duties arise under the FM Act and Auditor General Act themselves. This Act merely smooths the transition.

The Financial Management (Transitional Provisions) Act 2006 contains no penalty provisions of its own. It is a transitional machinery Act, not a regulatory or prohibitory statute. Enforcement and penalties flow from the primary Acts whose transition it manages: the Financial Management Act 2006 and the Auditor General Act 2006. However, the Act does have a relevant enforcement-related limitation concerning the power to make transitional regulations.

Clause 14(3) prohibits transitional regulations from operating so as:

“(a) to affect in a manner prejudicial to any person (other than the State or an authority of the State) the rights of that person existing before the day of publication of those regulations; or

(b) to impose liabilities on any person (other than the State or an authority of the State) in respect of anything done or omitted to be done before the day of publication of those regulations.”

This provision acts as a substantive restriction on the type of transitional regulation that can be made. It effectively provides a limited immunity for private persons against retroactive penalisation. If a transitional regulation were to retrospectively impose a penalty or create a liability for a prior act, a person affected (other than the State or a State authority) could challenge the regulation as ultra vires this clause. The clause does not, however, restrict the regulation of State authorities; the State can be made liable retrospectively.

Importantly, the Act itself does not create any offences for failing to comply with the transitional provisions. Non-compliance with transitional rules , for example, an agency continuing to treat an old trust account as a trust account instead of a special purpose account , would likely be dealt with under the FM Act’s enforcement provisions (such as potential disciplinary action against accountable officers) or under general public financial management obligations. The Auditor General’s audit powers under the Auditor General Act 2006 would detect such non-compliance.

The Act’s provisions that continue instruments (clauses 3-10) are effectively self-executing: the law says they continue as the new equivalents. There is no requirement for a separate approval process; the continuation happens by force of the Act. If an agency failed to recognise a continuing instrument, the remedy would be interpretive or declaratory, not penal.

The power to amend subsidiary legislation (clause 15) does not carry any penalty for non-exercise; it is a permissive power.

Thus, penalties are not a feature of this Act. Enforcement is indirect: the FM Act and Auditor General Act contain their own compliance regimes, and this transitional Act merely ensures that the legal basis for financial operations remains intact so that those regimes can operate without a gap.

The Interpretation Act 1984 (WA). Clause 2 of Schedule 2 expressly applies sections 16, 36 and 38 of the Interpretation Act 1984 to the repeal of the FAA Act as if Part II of the FAA Act were repealed and re-enacted by the FM Act, and Part III by the Auditor General Act. Section 16 of the Interpretation Act deals with the effect of repeal on rights, obligations, investigations, and pending proceedings; section 36 deals with references to re-enacted provisions; and section 38 deals with the continuity of subordinate legislation. These provisions provide a default safety net that operates alongside the specific transitional clauses. Clause 2(2) clarifies that the other transitional provisions in Schedule 2 are additional to those default rules and do not affect their operation.

The Constitution Act 1889 (WA). The Act interacts indirectly with section 64 of the Constitution Act 1889, which originally established the Consolidated Fund. Clause 13 of Schedule 2 provides that references to the Consolidated Fund in written laws or documents may be read as references to the Consolidated Account, which is the replacement fund established by amendments to the Constitution Act 1889 made by the FM Act. This ensures consistency between the constitutional provision and the new financial management framework.

The Hospital Fund Act 1930 (WA). Clause 5(2) creates a specific interaction with the Hospital Fund Act 1930: the trust statement for the Hospital Fund is preserved but with a modified reading of FM Act s 17(1)(a). This demonstrates that the Act does not take a one-size-fits-all approach; it accommodates legacy statutes that have their own special financial arrangements.

Treasurer’s Advance Authorisation Acts. These are annual or periodic Acts that give the Treasurer authority to make payments or advances in advance of appropriation. Clause 12 provides that an authorisation under such an Act that has effect on the commencement day continues as an authorisation under FM Act s 27 (payments) or s 28 (advances), as the case requires. This ensures that the Treasurer’s authority is not interrupted mid‑financial year.

Subsidiary legislation under any Act. Clause 15 gives the Governor an additional power to amend subsidiary legislation made under any Act, provided the amendment is necessary or desirable as a consequence of the FM Act, Auditor General Act, or this Act. This means the Act interacts with all Acts under which regulations, rules, by-laws, or other subordinate instruments have been made. The power is not confined to financial legislation; it could be used to update references in, say, the Environmental Protection Act 1986 or the Mining Act 1978 if those regulations mention the Consolidated Fund or the FAA Act.

The Reprints Act 1984 (WA). The Act’s compilation notes indicate that certain divisions and schedules have been omitted under the Reprints Act 1984 s 7(4)(e) because they had effect and are no longer current. This interaction is administrative: the reprint omits spent transitional provisions.

Other written laws and documents. Clause 11 provides a general interpretive rule allowing references to the FAA Act to be read as references to the FM Act or Auditor General Act. This covers not only statutes but also subordinate legislation, contracts, deeds, and other instruments. It is a “may” provision, not a mandatory amendment, so courts and tribunals will assess whether the context requires such a reading.

The Act originated as the Financial Legislation Amendment and Repeal Act 2006 (No. 77 of 2006), which was assented to on 21 December 2006. Section 18 of that Act amended its own short title to the Financial Management (Transitional Provisions) Act 2006 , a rare case of an Act changing its own name via a provision within itself. The amendment history therefore shows the Act was not originally titled as it is known today; the short title was altered after enactment.

The Act’s commencement was split. Sections 1 and 2 came into operation on assent (21 December 2006). The bulk of the Act, other than sections 3, 19, and Schedule 2, commenced on 1 February 2007 (see Gazette 19 January 2007 p. 137). Sections 3 and 19 and Schedule 2 (the repeal of the FAA Act and the transitional provisions) also commenced on 1 February 2007, as tied to the commencement of the Financial Management Act 2006 (section 2(3)).

There has been one subsequent amendment: the Statutes (Repeals and Minor Amendments) Act 2009 (No. 46 of 2009) section 8 deleted Schedule 1 clause 122, which had not yet come into operation. That clause was part of the Schedule 1 amendments and was removed as spent. The 2009 Act came into operation on 4 December 2009. The compilation table shows Reprint 1: as at 18 May 2007, which was before the 2009 amendment.

The Act’s structure originally included Divisions 2, 3, 4 and 5 of Part 2 and Schedule 1, which contained amendments to various Acts as a consequence of the FM Act and Auditor General Act. These provisions have been omitted from the reprint under the Reprints Act 1984 s 7(4)(e) because they have had effect and are no longer current. In effect, the Act’s operative provisions now consist of the repeal (section 3), the transitional provisions (section 19 and Schedule 2), and the residual amending power (section 15). The rest of the original Act is spent.

The compilation table notes that the Act was enacted with one short title and renamed by its own section 18. It also notes that Schedule 1 clause 122 never came into operation before being deleted. This illustrates the risk of amendment Acts containing provisions that lapse before commencement.

The provided source text contains no reference to any litigation, court decisions, or judicial consideration of this Act. The compilation table and notes are silent on tribunal or court proceedings. Given that the Act is a transitional machinery statute with a narrow function , preserving continuity of instruments and references , it is unlikely to generate its own independent body of case law. Disputes that might involve this Act would more likely concern the interpretation of the FM Act or the Auditor General Act, with the transitional provisions being auxiliary.

One avenue for potential litigation would be a challenge to a transitional regulation made under clause 14 on the ground that it violates the protective proviso in clause 14(3) , for example, if such a regulation prejudicially affected a private person’s existing rights or imposed retrospective liabilities. Another would be a disagreement about whether a particular Treasurer’s Instruction is inconsistent with the FM Act and therefore no longer effective under clause 10(3). A private party affected by an amendment to subsidiary legislation made under clause 15 could argue that the Treasurer’s recommendation did not satisfy the “necessary or desirable as a consequence” condition.

However, the absence of any cited cases in the source text suggests that no such challenges have reached the reported stage as of the date of compilation (the latest note is from 2009). The Act has been in force for over 15 years; if any litigation had occurred, it is likely that the compilation table or editorial notes would have mentioned significant cases. The prudent inference is that the Act has operated without judicial controversy.

Continuing instruments are subject to inconsistency with the FM Act. Clause 10(3) provides that a Treasurer’s Instruction or exemption that continues in effect does not have effect to the extent of any inconsistency with the FM Act. This is a potentially large source of surprise: agencies may assume that an old instruction remains fully valid, but the new Act may override parts of it. The onus is on users to identify inconsistencies. A Treasurer’s Instruction that was perfectly lawful under the FAA Act may now conflict with a new provision in the FM Act, and the continuing instruction loses force automatically.

The Treasurer can unilaterally cancel trust statements. Clause 5(1) says a trust statement continues “unless the Treasurer directs otherwise”. This gives the Treasurer a power to pull the plug on a continuing instrument without notice or justification. Agencies relying on such trust statements should be aware that the Treasurer can issue a direction at any time, and the continuation is not guaranteed.

Bank accounts outside the Public Bank Account stay outside by default. Clause 7(2) provides that a bank account which immediately before commencement did not form part of the Public Bank Account continues not to form part of it, despite FM Act s 13 which generally requires bank accounts held by agencies to be part of the Public Bank Account. This is a grandfathering provision, but it also means that agencies with such accounts must check whether FM Act s 13 would otherwise have required the account to be brought into the Public Bank Account. The exception continues only because the Act says so; if the account is later changed or reauthorised, the exception may be lost.

Transitional regulations can be retrospective , but only against the State. Clause 14(2) permits regulations that operate from a date earlier than their publication, as long as that date is not earlier than the commencement day. Clause 14(3) then restricts that retrospectivity: regulations cannot prejudicially affect any person other than the State or an authority, nor impose liabilities on such persons for prior acts. This means the State can lawfully impose retrospective obligations on itself and its own authorities, but not on private persons. However, the definition of “State or an authority of the State” is not defined in this clause; it may include statutory corporations, government trading enterprises, and possibly local government bodies. Private contractors, suppliers, and individuals are protected.

Power to amend subsidiary legislation is broad and not time-limited. Clause 15 allows the Governor to amend any subsidiary legislation made under any Act, provided the Treasurer considers the amendment necessary or desirable as a consequence of the FM Act, Auditor General Act, or this Act. This power does not expire. It can be used years after the transition to clean up outdated references. It also bypasses the normal amendment procedure under the parent Act (clause 15(3) makes clear that normal amendment is not precluded, but the Governor’s power under clause 15 is an alternative). This creates a risk of regulatory amendments being made without the usual consultation or parliamentary scrutiny that would accompany an amendment to the parent Act. Affected persons should monitor the Gazette for amendments under this power.

References to the FAA Act “may” be read as references to the new Acts. Clause 11 uses permissive language. It does not automatically update every reference; it provides an interpretive tool. Courts, tribunals, and administrative decision-makers have discretion whether the context requires the reference to be read as referring to the FM Act or Auditor General Act. This can create uncertainty , a contract that says “subject to the Financial Administration and Audit Act 1985” may or may not be read as meaning “subject to the Financial Management Act 2006” depending on the context. Parties to such instruments should consider making express amendments rather than relying on the clause.

The Act contains no sunset for the transitional provisions. Schedule 2 does not say that the continuing instruments expire after a certain period. They continue indefinitely, subject only to the inconsistency rule (clause 10(3)) and the Treasurer’s power to direct otherwise (clause 5). The Governor’s power to make transitional regulations (clause 14) is also not time-limited. This means the transitional regime has become a permanent feature of the legislative landscape for those instruments that were originally created under the FAA Act. Over time, as instruments are replaced or amended, the transitional provisions will become less relevant, but they have no automatic end date.

Because the Act is itself a transitional instrument, compliance means ensuring that all financial management arrangements that existed under the repealed FAA Act are properly aligned with the new FM Act and Auditor General Act. There is no single compliance checklist, but the following steps are derived from the Act’s provisions.

Identify all instruments affected. Each agency should compile a list of all determinations, trust accounts, operating accounts, bank accounts, and Treasurer’s Instructions that were in effect immediately before 1 February 2007. This includes:

• Treasurer’s determinations under FAA Act s 6(3)(d) (moneys creditable to Consolidated Fund)
• Trust accounts established under FAA Act s 9(2)(c)
• Trust statements approved under FAA Act s 10
• Operating accounts under FAA Act s 15B
• Bank accounts authorised under FAA Act s 21
• Prescribed revenue determinations under FAA Act s 23A
• Investment income determinations under FAA Act s 39(5)
• Treasurer’s Instructions and exemptions issued under FAA Act s 58

Map each instrument to its new equivalent under the FM Act. The Act provides the mapping, but agencies should update their internal documentation and financial systems to refer to the new names and authorities. For example, an operating account should be relabelled as an “agency special purpose account” under FM Act s 16(1)(a). Trust accounts should be reclassified as special purpose accounts under FM Act s 10(a) or (f) or s 16(1)(c) or (d), depending on whether they are Treasurer’s or agency accounts (see clause 4). The mapping is not always symmetrical; agencies need to determine which category their trust account falls into.

Review Treasurer’s Instructions for inconsistency with the FM Act. Clause 10(3) automatically invalidates any part of a continuing instruction or exemption that conflicts with the FM Act. Agencies should conduct a gap analysis: compare each continuing instruction with the corresponding provisions of the FM Act. If a conflict exists, the instruction cannot be relied upon. The agency may need to seek fresh guidance from the Treasurer or await the issue of new instructions under FM Act s 78. If an instruction contains an exemption, check whether the FM Act still permits such an exemption.

Check bank accounts for their status under the Public Bank Account. Clause 7(1) deems FAA Act bank account authorisations to be FM Act authorisations, but clause 7(2) preserves the pre-existing status of accounts outside the Public Bank Account. Agencies should verify whether their account is inside or outside the Public Bank Account and ensure compliance with FM Act s 13 and any Treasurer’s directions on public bank account arrangements. If the account was outside, no action is required; if it was inside, it continues inside.

Monitor transitional regulations and amendments to subsidiary legislation. The Governor may make transitional regulations under clause 14 at any time, and clause 15 permits amendments to subsidiary legislation. Agencies should watch the Gazette for these instruments and adjust their practices accordingly. Because clause 14 allows retrospectivity (subject to the private-party protection), an agency could be affected by a regulation that applies from a date before its publication. It is prudent to stay informed.

Update references in internal documents and contracts. Clause 11 provides that references to the FAA Act may be read as references to the FM Act or Auditor General Act, but reliance on this interpretive rule is risky. Agencies should proactively amend any template documents, policies, procedures, standard contracts, and trust deeds that mention the FAA Act to refer to the correct new Act. This reduces ambiguity and the risk of misinterpretation by third parties.

Manage the Hospital Fund trust statement specially. If the agency is responsible for the Hospital Fund under the Hospital Fund Act 1930, the agency must treat the trust statement as a special purpose statement under FM Act s 17, with the modified reading in clause 5(2). The agency should ensure that the statement is approved as required under the FM Act.

Do not assume the transitional provisions are temporary. As noted, the Act has no sunset. Compliance is an ongoing obligation. Continuing instruments remain in force until they are replaced, revoked, or become inconsistent. Agencies should plan to replace old instruments with new ones under the FM Act as part of normal business improvement, rather than relying indefinitely on the transitional arrangements.

Seek legal advice on any uncertainty. Where the Act’s mapping is ambiguous , for example, whether a particular trust account becomes a Treasurer’s special purpose account or an agency special purpose account (see clause 4(a) vs (b)) , the agency should obtain advice and, if necessary, seek a direction from the Treasurer. The Treasurer has the power to give directions under the FM Act that can resolve such classification questions.