NORTHERN TERRITORY OF AUSTRALIA
FINANCIAL MANAGEMENT ACT 1995
As in force at 1 July 2021
Table of provisions
Part 1 Preliminary
1 Short title ......................................................................................... 1
2 Commencement .............................................................................. 1
3 Interpretation ................................................................................... 1
Part 2 Accounting framework
4 Public Account ................................................................................. 5
5 Central Holding Authority ................................................................. 5
6 Operating Accounts ......................................................................... 5
7 Accountable Officers' Trust Accounts .............................................. 6
8 Treasurer's quarterly financial statements ....................................... 7
9 Treasurer's annual financial statement ............................................ 7
10 Annual financial statements of Government Business
Divisions .......................................................................................... 8
11 Other financial statements ............................................................... 8
12 Annual reports of agencies .............................................................. 9
Part 3 Accountable Officers
13 Duties of Accountable Officers ........................................................ 9
14 Money to be committed by Accountable Officer ............................ 10
15 Internal audit .................................................................................. 11
16 Accounting and property manuals ................................................. 11
17 Exemption of Accountable Officer ................................................. 12
Part 4 Budget management
18 Use of Treasurer's Advance .......................................................... 12
19 Increase or replenishment of Treasurer's Advance ....................... 12
19A Increase of funds available from Commonwealth .......................... 13
20 Transfer of appropriations.............................................................. 14
21 Appropriation accompanies transfer of business after
redistribution .................................................................................. 14
24 Lapse of appropriation ................................................................... 15
26 Expenditure unclaimed .................................................................. 15
Part 5 Funds management
27 Official bank accounts ................................................................... 15
Financial Management Act 1995 ii
28 Withdrawal of money ..................................................................... 16
29 Investment of money ..................................................................... 16
30 No appropriation needed for investment or repayment of debt ...... 17
31 Lending .......................................................................................... 17
32 Borrowing ...................................................................................... 18
33 Other financial transactions ........................................................... 18
34 Guarantees and indemnities .......................................................... 19
35 Losses and waivers ....................................................................... 19
36 Capital structure and dividends ..................................................... 20
37 Ex gratia payments ........................................................................ 20
Part 6 Administration
38 Treasurer's Directions.................................................................... 20
39 Delegation ..................................................................................... 20
Part 7 Miscellaneous
41 Regulations.................................................................................... 21
Part 8 Transitional provisions for Financial
Management Amendment Act 2009
42 Definition........................................................................................ 22
43 Application of this Act .................................................................... 22
44 References to Allocation ................................................................ 22
ENDNOTES
NORTHERN TERRITORY OF AUSTRALIA
As in force at 1 July 2021
FINANCIAL MANAGEMENT ACT 1995
An Act relating to the financial management of the Territory and certain
Government business activities, and for related purposes
Part 1 Preliminary
1 Short title
This Act may be cited as the Financial Management Act 1995.
2 Commencement
This Act shall come into operation on a date to be fixed by the
Administrator by notice in the Gazette.
3 Interpretation
(1) In this Act:
Accountable Officer means:
(a) in relation to an Agency – the chief executive officer (however
described) of the Agency or a person whom the Treasurer
declares in writing to be the Accountable Officer for the
Agency for this Act; or
(b) in relation to the Central Holding Authority – the person whom
the Treasurer declares in writing to be the Accountable Officer
of the Authority for this Act.
Accountable Officer's Trust Account means an Accountable
Officer's Trust Account established under section 7.
accounts mean the records, however compiled, recorded or stored
(whether in written or printed form or on film or by electronic
process or otherwise) of transactions in respect of money or
property held by or for the Territory or an Agency, and includes
books, documents, writings, money forms, vouchers and other
recorded information of any kind from which accounts have been
compiled.
Part 1 Preliminary
Financial Management Act 1995 2
Agency means a unit of government administration, or office or
statutory corporation, nominated in an Administrative Arrangements
Order as an Agency for the purposes of this Act, and includes,
where the case requires, a part or division (by whatever name
called) of an Agency.
appropriation means:
(a) an amount authorised to be paid from the Central Holding
Authority pursuant to an Appropriation Act and includes any
variation of that amount authorised in accordance with this or
any other Act; or
(b) an amount required by any other Act to be provided from the
public moneys of the Territory.
Appropriation Act includes a Supply Act, an annual Appropriation
Act or an additional Appropriation Act which authorises an
appropriation to a Purpose.
audit includes the inspection, investigation, examination and review
of accounts and systems.
Central Holding Authority means the account by that name that
forms part of the Public Account, as mentioned in section 4.
employee, in relation to an Agency, means a person employed by
or in the business of the Agency, and includes the Accountable
Officer.
expenditure means the payment of money for either actual or
accrued expenses and includes an advance or transfer from an
Operating Account.
Government Business Division means an Agency, or a part of an
Agency, that:
(a) recovers a significant proportion of its operating costs through
charges on users; and
(b) is determined by the Treasurer to be a Government Business
Division.
internal control means the methods and procedures adopted
within an Agency to do the following:
(a) promote operational efficiency, effectiveness and economy;
(b) safeguard its assets and manage its liabilities and contingent
liabilities;
Part 1 Preliminary
Financial Management Act 1995 3
(c) deter and protect against fraud;
(d) maintain the accuracy and reliability of its accounting
information;
(e) ensure compliance with legislative provisions.
loss includes the following:
(a) a loss of or deficiencies in money or property held by or for the
Territory or an Agency;
(b) a loss arising out of the destruction, condemnation,
obsolescence, abandonment, deterioration of or damage to
property;
(c) an irrecoverable overpayment and debts;
(d) an expenditure made without lawful authority;
(e) a loss of money due to failure to assess and levy revenue and
other amounts receivable.
money means cash or negotiable instruments collected, received
or held by or due to a person for or on behalf of the Territory or an
Agency or held in an official bank account and includes funds
transferred electronically or by any other means.
National Health Reform Agreement, see section 3(1) of the NHFP
Act.
NHFP account means either of the following established under the
NHFP Act as an Operating Account for the Agency responsible for
administering that Act:
(a) the State Pool Account of the Territory;
(b) the State Managed Fund of the Territory.
NHFP Act means National Health Funding Pool and Administration
(National Uniform Legislation) Act 2012.
official bank account means an official bank account opened by
the Treasurer in pursuance of section 27.
Note
See section 27(7).
Part 1 Preliminary
Financial Management Act 1995 4
Operating Account means:
(a) a Government Business Division Operating Account, or an
Agency Operating Account, established under section 6(1); or
(b) an NHFP account.
Public Account means the account established under section 4.
Purpose means a Purpose specified under an Appropriation Act,
whether or not it is also designated under that Act as any of the
following:
(a) Output;
(b) Capital;
(c) Treasurer's Advance;
(d) Commonwealth;
(e) Interest, Taxes and Administration;
(f) Employee Entitlements.
receipts means money received into the Public Account and
includes:
(a) a transfer, advance or other remittance within the Public
Account; and
(b) the amount of the value of units in a unit trust held by or on
behalf of the Territory credited to the Public Account; and
(c) the amount of the value of funds managed on behalf of the
Territory credited to the Public Account.
securities include inscribed stock, debentures, bonds, debenture
stock, notes and any other document creating, evidencing or
acknowledging indebtedness (whether or not constituting a charge
on property).
Treasurer's Advance means the Purpose to which an
appropriation is made, that may be used as mentioned in
section 18.
(2) A reference in this Act to a Minister in relation to an Agency
(whether the relationship is by reference to the Accountable Officer,
Operating Account or otherwise) is a reference to the Minister to
whom the administration of the Agency, or the Act by or under
which the Agency is established, is allotted under an Administrative
Part 2 Accounting framework
Financial Management Act 1995 5
Arrangements Order or an Act.
Part 2 Accounting framework
4 Public Account
(1) The Treasurer shall establish and keep a Public Account of the
receipts and expenditure of the Territory and Agencies.
(2) The Public Account shall consist of:
(a) the Central Holding Authority; and
(b) the Operating Accounts.
5 Central Holding Authority
(1) There shall be credited to the Central Holding Authority all money
received by or on behalf of the Territory or an Agency except that
required or permitted by or under this or any other Act to be
credited to an Operating Account or to an Accountable Officer's
Trust Account.
(2) Money must not be paid from the Central Holding Authority except
as authorised under an Appropriation Act, this Act or another Act.
(3) Money payable by the Central Holding Authority for liabilities
incurred or assumed by the Territory for employee entitlements
must be paid out of the public moneys of the Territory and the
appropriation for that Purpose is established or increased to the
extent necessary.
6 Operating Accounts
(1) The Treasurer shall establish for each Agency:
(a) an Operating Account for each Government Business Division
for which the Agency is responsible; and
(b) an Agency Operating Account for all other functions of the
Agency.
Note for subsection (1)
The definition of Operating Account in section 3(1) includes each of the NHFP
accounts. However, a reference to an Operating Account established under this
Act is a reference to an account established under subsection (1).
Part 2 Accounting framework
Financial Management Act 1995 6
(2) There must be paid into an Operating Account the following to the
extent applicable to that Operating Account:
(a) payments from the Central Holding Authority in respect of the
functions for which the Agency is responsible;
(b) for an Operating Account for a Government Business
Division – all receipts of the Government Business Division;
(c) for an NHFP account – all receipts for the NHFP account
including payments from the Commonwealth under the
National Health Reform Agreement;
(d) other categories of receipts as are from time to time agreed by
the Treasurer and the Minister and specified in the Treasurer's
Directions issued under section 38.
(3) An amount of expenditure incurred may be paid from an Operating
Account as follows:
(a) for an Operating Account established under this Act – by the
Accountable Officer of the Agency that performs the functions
for which the Operating Account exists;
(b) for an NHFP account – in accordance with the NHFP Act.
(4) Subject to this Act and any other law of the Territory, if the
Treasurer is satisfied at any time that there is available in an
Agency Operating Account established under this Act a credit
balance in excess of the amount reasonably required, the Treasurer
may transfer the whole or a part of the excess from the Operating
Account to the Central Holding Authority.
(5) The Accountable Officer of an Agency must keep in relation to his
or her Operating Account established under this Act the accounts
that are specified in the Treasurer's Directions.
7 Accountable Officers' Trust Accounts
(1) The Treasurer shall establish such Accountable Officer's Trust
Accounts as are required by or under this Act or any other law in
force in the Territory to be established for the receipt of money by
the Territory or an Agency to be held in trust.
(2) There shall be credited to an Accountable Officer's Trust Account
all money required or permitted by this Act or any other law in force
in the Territory to be held in trust by the Territory or an Agency.
Part 2 Accounting framework
Financial Management Act 1995 7
(3) Money may be withdrawn from an Accountable Officer's Trust
Account only for the purposes of the trust to which the money
relates or for any other purpose authorised by this Act or any other
law in force in the Territory.
(4) Each Accountable Officer must keep in relation to his or her
Accountable Officer's Trust Account the accounts that are specified
in the Treasurer's Directions.
8 Treasurer's quarterly financial statements
(1) As soon as practicable after the end of each of the first, second and
third quarters of a financial year, the Treasurer must prepare in the
form the Treasurer considers appropriate, and publish in the
Gazette, financial statements for the quarter.
(2) In preparing those financial statements, the Treasurer may have
regard to what is required to be included in the final fiscal results
report for the financial year under the Fiscal Integrity and
Transparency Act 2001.
9 Treasurer's annual financial statement
(1) The Treasurer must publicly release and table in the Legislative
Assembly an annual financial statement for a financial year, in the
form the Treasurer considers appropriate, within 4 months after the
end of the financial year.
(1A) If the Legislative Assembly is not sitting when an annual financial
statement is publicly released, the statement must be tabled in the
Legislative Assembly when it next sits.
(2) The annual financial statement may incorporate the final fiscal
results report for the financial year under the Fiscal Integrity and
Transparency Act 2001.
(3) The annual financial statement is to include reports on the following
during the financial year:
(a) all write-offs, waivers, postponements and gifts by the
Treasurer under section 35;
(b) all ex gratia payments directed by the Treasurer under
section 37.
(4) In tabling the annual financial statement, the Treasurer must
include:
(a) a signed copy of the statement; and
Part 2 Accounting framework
Financial Management Act 1995 8
(b) a signed copy of the Auditor-General's report on the statement
under the Audit Act 1995.
10 Annual financial statements of Government Business
Divisions
(1) The Accountable Officer of an Agency responsible for a
Government Business Division must prepare a financial statement
in respect of the Government Business Division:
(a) within 2 months after the end of the financial year; or
(b) by the end of another period determined by the Treasurer.
(2) A financial statement under subsection (1) must be prepared in
such form as the Treasurer directs and, unless the Treasurer
directs otherwise, be prepared on commercial accounting
principles.
(3) The Accountable Officer must forward the financial statement to the
Auditor-General who must audit the statement and report on the
statement to the Minister and forward a copy of the report to the
Accountable Officer.
(4) The Minister must publicly release and table in the Legislative
Assembly the financial statement and the Auditor-General's report
within 4 months after the end of the financial year or another period
determined by the Treasurer.
(5) If the Legislative Assembly is not sitting when the financial
statement and the Auditor-General's report are publicly released,
the statement and the report must be tabled in the Legislative
Assembly when it next sits.
11 Other financial statements
(1) Subject to any other law of the Territory, the Accountable Officer of
an Agency must, if the Treasurer directs the Accountable Officer to
do so, prepare a financial statement in respect of the operations of,
or specified functions of, the Agency for a financial year.
(2) The financial statement for the financial year must be in the form
the Treasurer directs and must be prepared:
(a) within 2 months after the end of the financial year; or
(b) by the end of another period determined by the Treasurer.
(3) The Treasurer may direct the Accountable Officer of an Agency to
submit the financial statement directed to be prepared under
Part 3 Accountable Officers
Financial Management Act 1995 9
subsection (1) to the Auditor-General who must audit it and report
on the statement to the Minister and forward a copy of the report to
the Accountable Officer.
(4) The Minister must publicly release and table in the Legislative
Assembly the financial statement and any Auditor-General's report
within 4 months after the end of the financial year or another period
determined by the Treasurer.
(5) If the Legislative Assembly is not sitting when the financial
statement and any Auditor-General's report are publicly released,
the statement and the report must be tabled in the Legislative
Assembly when it next sits.
12 Annual reports of agencies
All annual reports prepared under section 28 of the Public Sector
Employment and Management Act 1993 shall contain financial
statements prepared under section 10 or, where a relevant direction
by the Treasurer has been given, under section 11.
Part 3 Accountable Officers
13 Duties of Accountable Officers
(1) The Accountable Officer of an Agency is responsible for the
financial management of the Agency.
(1A) The Accountable Officer of the Central Holding Authority is
responsible for the financial management of the Central Holding
Authority.
(2) The Accountable Officer of an Agency must ensure that:
(a) proper records of all transactions affecting the Agency are
kept and that employees under his or her control observe the
requirements of this Act, the Regulations and the Treasurer's
Directions; and
(b) procedures in the Agency are such as will at all times afford a
proper internal control.
(2A) The Accountable Officer of the Central Holding Authority must
ensure that:
(a) proper records of all transactions affecting the Central Holding
Authority are kept and that the requirements of this Act, the
Regulations and the Treasurer's Directions are observed; and
Part 3 Accountable Officers
Financial Management Act 1995 10
(b) the Central Holding Authority's procedures are such as will at
all times afford a proper internal control of the Central Holding
Authority.
(3) The Treasurer may, after consultation with the relevant Minister,
issue a direction to the Accountable Officer of an Agency in relation
to the financial management of the Agency.
(4) An Accountable Officer, and an employee of the Agency, to whom a
direction under subsection (3) applies must comply with the
direction.
(5) In complying with subsections (1) and (2), the Accountable Officer
of the Agency responsible for administering the NHFP Act may rely
on records kept under Part 4 of that Act about the NHFP accounts.
14 Money to be committed by Accountable Officer
(1) Money shall not be committed for expenditure except by an
Accountable Officer or by a person acting on the authority of an
Accountable Officer.
(2) The Accountable Officer of an Agency must not commit money for
expenditure unless satisfied that, when payment in respect of the
transaction falls due, there will be sufficient funds available in the
relevant Operating Account to make the payment.
(2A) The Accountable Officer of the Central Holding Authority must not
commit money for expenditure unless satisfied that, when payment
in respect of the transaction falls due, there will be sufficient funds
available in the Central Holding Authority to make the payment.
(3) The Minister may, in writing, direct the Accountable Officer of an
Agency to commit money for an objective incidental to a function for
which the Accountable Officer is responsible and, subject to
subsection (2), the Accountable Officer shall comply with the
direction.
(4) The Accountable Officer of an Agency must not commit money for
expenditure in a financial year if the expenditure would result in the
Agency exceeding the Agency's final approved budget for the
financial year.
(5) Despite subsection (4), the Accountable Officer may commit money
for expenditure in a financial year in excess of the Agency's final
approved budget for the financial year if the Accountable Officer
believes on reasonable grounds that the Agency will receive
revenue that is equal to or greater than the value of the excess
expenditure.
Part 3 Accountable Officers
Financial Management Act 1995 11
(6) Subsection (4) does not apply in relation to money committed for
expenditure that the Treasurer considers is eligible, in accordance
with the Treasurer's Directions issued under section 38, for a
portion of the Treasurer's Advance.
(7) In this section:
expense budget, for an Agency, means the Agency's total
expense budget for a financial year that is specified in the budget
papers tabled in the Legislative Assembly for the financial year, less
an amount equal to the value of the Agency's non-cash items.
final approved budget, for an Agency for a financial year, means
the sum of:
(a) the Agency's expense budget for the financial year as
increased or decreased by a transfer or issue under
section 18, 19A, 20 or 21; and
(b) the greater of the following:
(i) an amount equal to 1% of the amount under
paragraph (a);
(ii) $500 000.
non-cash items means the items specified in the Treasurer's
Directions issued under section 38 as non-cash items.
15 Internal audit
(1) The Accountable Officer of an Agency shall ensure that the Agency
has an adequate internal audit capacity to assist the Accountable
Officer in the performance of his or her functions under this Act.
(2) The person in charge of an internal audit of an Agency shall, as
soon as practicable after completing the internal audit, report to the
Accountable Officer of the Agency the result of the audit.
(3) In complying with subsections (1) and (2), the records kept under
Part 4 of the NHFP Act about the NHFP accounts may be relied on.
16 Accounting and property manuals
The Accountable Officer of an Agency must issue and maintain an
accounting and property manual for use by the employees of the
Agency.
Part 4 Budget management
Financial Management Act 1995 12
17 Exemption of Accountable Officer
(1) The Administrator may, by instrument in writing, direct that an
Accountable Officer need not comply with this Act or such
provisions of or under this Act as are specified in the instrument, or
need only to comply with a provision subject to such conditions as
the Administrator thinks fit and specifies in the instrument, and
while the direction remains in force the Accountable Officer need
not comply with the Act or the provision, or shall comply subject to
those conditions, as the case may be.
(2) The Treasurer shall table a copy of an instrument under
subsection (1) in the Legislative Assembly within 6 sitting days of
the Assembly after the instrument is made.
Part 4 Budget management
18 Use of Treasurer's Advance
(1) The Treasurer may supplement an appropriation to a Purpose by
transferring a portion of the Treasurer's Advance to that Purpose.
(2) The Treasurer may transfer a proportion of the Treasurer's Advance
to a Purpose to which no appropriation has been made by an
Appropriation Act.
19 Increase or replenishment of Treasurer's Advance
(1) If, because of reasons provided by the Treasurer, the Administrator
is satisfied funds available in the Central Holding Authority will be in
excess of requirements (excess funds) for a financial year, the
Administrator may increase the appropriation to the Treasurer's
Advance for the financial year.
(1A) The amount of the increase for the financial year must not be more
than the lesser of the following:
(a) the amount of excess funds;
(b) 5% of the total of appropriations provided by Appropriation
Acts for the financial year (other than appropriations for a
Purpose designated as Commonwealth).
(2) The appropriation to the Treasurer's Advance may be increased in
the course of a financial year by a transfer in accordance with
section 20.
Part 4 Budget management
Financial Management Act 1995 13
(3) The appropriation to the Treasurer's Advance may be replenished
in the course of a financial year by the writing back to the
Treasurer's Advance of amounts previously transferred to a
Purpose and no longer required.
(4) Where an increase in the appropriation to the Treasurer's Advance
has been made under subsection (1), the Treasurer shall table in
the Legislative Assembly, within 6 sitting days of the Assembly after
the increase is made, a statement setting out:
(a) the reasons given to the Administrator and referred to in that
subsection; and
(b) the amount by which the Treasurer's Advance has been
increased.
19A Increase of funds available from Commonwealth
(1) This section applies if the Treasurer is satisfied:
(a) funds available in the Central Holding Authority for a financial
year have been or will be increased under an Act of the
Commonwealth or an arrangement between the Territory and
the Commonwealth; and
(b) the amount of the increase (increased funds) must be used
in accordance with the Act or arrangement.
(2) The Treasurer may, by written notice, authorise the issue of all or
part of the amount of the increased funds so the amount to be
issued is used in accordance with the Act or arrangement for the
following:
(a) a Purpose designated as Commonwealth in an existing
appropriation for which the amount of appropriation is to be
increased;
(b) something that is a Purpose designated as Commonwealth in
the notice.
(3) The total of amounts authorised to be issued under subsection (2)
in a financial year must not be more than the amount of increased
funds for the financial year.
(4) The appropriation for an amount authorised to be issued under
subsection (2) is established or increased to the extent necessary.
Part 4 Budget management
Financial Management Act 1995 14
(5) The Treasurer must table in the Legislative Assembly, within
6 sitting days after the date of a notice under subsection (2), a copy
of the notice and a statement about any issue under the notice.
(6) In this section:
increased includes varied.
20 Transfer of appropriations
(1) An excess appropriation available to a Purpose of an Agency may,
in accordance with a written direction of the Treasurer, be
transferred to one or more Purposes of another Agency or within
the Agency, if the Treasurer is of the opinion that it is necessary to
do so for the administration of government.
(2) The Treasurer must table a direction under subsection (1) in the
Legislative Assembly within 6 sitting days of the Assembly after the
direction is given.
21 Appropriation accompanies transfer of business after
redistribution
(1) Where, after the passing of an Appropriation Act, the Administrator
redistributes, in whole or in part, the public business amongst
Agencies, the appropriate proportions, as determined by the
Treasurer, of any appropriation involved must be transferred
accordingly.
(2) For the purposes of accounting:
(a) receipts and expenditure relating to the public business
redistributed under subsection (1) that are incurred before the
redistribution occurred are taken to have occurred in the
Agency to which the business is redistributed; and
(b) payments in relation to the redistributed business that were
made from the Central Holding Authority before the
redistribution occurred are taken to have been provided to the
Purpose of the Agency to which the business is redistributed
that is the same category of Purpose as the Purpose to which
the payments were made.
(3) The Treasurer shall table in the Legislative Assembly, within
6 sitting days of the Assembly after the transfer in pursuance of
subsection (1), a statement of the amounts of appropriation
transferred under subsection (1).
Part 5 Funds management
Financial Management Act 1995 15
24 Lapse of appropriation
An appropriation in respect of a financial year:
(a) is available for the financial year only; and
(b) the balance of appropriation unexpended at the end of the
financial year lapses and is not available for a subsequent
financial year.
26 Expenditure unclaimed
Subject to any other law of the Territory, expenditure that is
unclaimed by the person entitled to it for such period after it
becomes payable as the Treasurer determines shall be paid into
the Central Holding Authority.
Part 5 Funds management
27 Official bank accounts
(1) The Treasurer must open an official bank account under the name
"Northern Territory Government Account" and may, as he or she
thinks fit, open other official bank accounts.
(1A) An official bank account may only be opened under subsection (1)
with an ADI.
(2) A person shall not, except by the authority of the Treasurer, open
an official bank account.
(3) Except as otherwise provided by or under this or any other Act, all
money shall be kept in an official bank account.
(4) Overdraft accommodation shall not be granted on an official bank
account except by the authority of the Treasurer.
(5) All moneys collected or received by an employee of an Agency
shall be paid daily, or at such other intervals of time as the
Treasurer directs, to the credit of the Northern Territory
Government Account or such other official bank account as the
Treasurer directs.
(6) Money received and paid into an official bank account that is later
ascertained to be not so payable may, with the approval of an
Accountable Officer, be withdrawn from the official bank account
and paid to the person lawfully entitled to it.
Part 5 Funds management
Financial Management Act 1995 16
(7) This section does not apply to a bank account opened and
maintained as required under the NHFP Act.
28 Withdrawal of money
Money shall be withdrawn by an Accountable Officer from an official
bank account in accordance with the Treasurer's Directions and not
otherwise.
29 Investment of money
(1) The Treasurer:
(a) may determine from time to time whether any, and if so what,
amount of money standing at credit in an official bank account
is available for investment; and
(b) may invest the amount in such investments as are from time
to time permitted by or under this Act, and for such periods, as
the Treasurer thinks fit.
(2) The Treasurer must not make an investment referred to in
subsection (1) except as follows:
(a) in securities of or guaranteed by the Government of the
Territory, the Commonwealth or a State or another Territory of
the Commonwealth;
(b) in deposits, debentures, promissory notes or other securities
of a statutory body the obligations of which are guaranteed by
the Government of the Territory, the Commonwealth or a
State or another Territory of the Commonwealth;
(c) in deposits, debentures, promissory notes or other securities
of a body corporate or an ADI, that maintains such minimum
credit rating specified by the Treasurer as is published from
time to time by a credit rating agency approved by the
Treasurer;
(d) whether secured or unsecured:
(i) in capital market investments issued by a body corporate
that maintains such minimum credit rating specified by
the Treasurer as is published from time to time by a
credit rating agency approved by the Treasurer; or
(ii) in debentures, securities or other obligations of
governments, government authorities or statutory
bodies; or
Part 5 Funds management
Financial Management Act 1995 17
(iii) in promissory notes made by a body corporate referred
to in paragraph (c) or a statutory body whether
constituted under an Act of the Territory, the
Commonwealth or a State or another Territory of the
Commonwealth; or
(iv) in futures contracts traded on a prescribed financial
market (as defined in section 9 of the Corporations
Act 2001) and in forward exchange or interest rate
agreements complying with such terms and conditions
as the Treasurer determines; or
(v) in notes, certificates, bonds, options, swaps, bills of
exchange (specified by an entity specified in
subsection (2)(a), (b) or (c)) and currency transactions in
accordance with section 33(2);
(e) with a dealer in the short term money market with established
lines of credit with the Reserve Bank of Australia or a lender of
last resort;
(f) in such other investments as the Treasurer determines.
(3) The Treasurer must table a determination under subsection (2)(f) in
the Legislative Assembly within 6 sitting days of the Assembly after
signing it.
(4) Money received by the Treasurer as a result of an investment made
under this section must be paid to the official bank account from
which the money the subject of the investment was drawn.
30 No appropriation needed for investment or repayment of debt
(1) Payments of money made by the Treasurer in accordance with
section 29 may be made without appropriation of money for the
payments so made.
(2) Payments of money from the Central Holding Authority for the
repayment of the principal owing on a debt may be made without
appropriation of money for the payments.
31 Lending
(1) The Treasurer may lend or advance money or otherwise make
financial accommodation available to the Territory, an Agency, a
local government council or other person.
(1A) Money may be loaned under subsection (1) on the basis that if:
(a) certain conditions of the loan are satisfied; and
Part 5 Funds management
Financial Management Act 1995 18
(b) the approval of the Treasurer is obtained,
the money loaned is not required to be repaid to the Territory.
(2) The terms and conditions of lending shall be in accordance with the
terms and conditions specified in the law authorising or permitting
the advance.
(3) The Accountable Officer of the Agency to which, or the relevant
person to whom, the lending is made shall cause a record of the
lending to be maintained.
(4) The Accountable Officer shall review the record of the lending to
ensure that lendings are properly repaid by the date on which they
are due to be repaid.
32 Borrowing
(1) The Treasurer may raise money or otherwise obtain financial
accommodation in Australia or elsewhere for the Territory, an
Agency, a local government council or other person.
(2) No money shall be raised or financial accommodation otherwise
obtained on the public credit of the Territory except by the authority
of this Act or another law of the Territory.
(3) Subject to this Act, the Territory may give security for the
repayment of money raised or financial accommodation otherwise
obtained on the public credit of the Territory and the payment of
interest thereon.
(4) All money raised or financial accommodation otherwise obtained by
or on behalf of or received by the Territory pursuant to a financial
agreement with the Commonwealth or otherwise on the public
credit of the Territory shall be paid into an official bank account for
credit to the Public Account.
33 Other financial transactions
(1) The Treasurer may enter into interest rate swaps, currency swaps,
hedge agreements, finance options, futures contracts or options,
forward exchange rate agreements or analogous transactions,
whether or not the transaction is entered into for the purpose of
managing or protecting against a financial or currency risk.
(2) Transactions relating to foreign currencies may be entered into with
settlement fixed by reference to any time or circumstance.
Part 5 Funds management
Financial Management Act 1995 19
34 Guarantees and indemnities
(1) If in the opinion of a Minister, including the Treasurer, the Territory
would benefit, that Minister may with the agreement of the
Treasurer make arrangements for the Territory:
(a) to give a guarantee, on the terms the Treasurer thinks fit, that
a person's specified financial obligations will be fulfilled; or
(b) to indemnify a person, on the terms the Treasurer thinks fit, for
actual or potential liability in relation to the person's financial
obligations.
(2) Notwithstanding any other law of the Territory, an instrument
effecting a guarantee or an indemnity referred to in subsection (1)
shall be signed by the Treasurer, unless the Treasurer has agreed
that it may be signed by the Minister or some other person on
behalf of the Territory.
35 Losses and waivers
(1) The Treasurer may write off:
(a) irrecoverable amounts payable to the Territory or an Agency;
(b) losses or deficiencies of money; or
(c) the value of lost, deficient, condemned, unserviceable,
abandoned or obsolete property.
(2) The Treasurer may:
(a) waive or postpone the right of the Territory or an Agency to:
(i) the payment of an amount, or of an amount included in a
class of amounts, payable to the Territory; or
(ii) the recovery of any property or of property included in a
class of property; or
(b) dispose of property by way of gift where the Treasurer is
satisfied that that course is the most appropriate action to be
taken.
(3) The power conferred by subsection (2) is in addition to, and does
not derogate from, any other power conferred on the Treasurer by
any other law of the Territory.
Part 6 Administration
Financial Management Act 1995 20
36 Capital structure and dividends
(1) The Treasurer may determine or alter the capital structure of an
Agency or a Government Business Division, including by converting
debt to equity, converting equity to debt, increasing equity,
withdrawing equity, transferring assets and altering the equity base.
(2) The Treasurer may determine that an Agency or a Government
Business Division is to pay a dividend to the Territory, if he or she is
satisfied that the Agency or Government Business Division has
sufficient resources to do so.
(3) A determination under subsection (1) or (2) may be made subject to
the terms and conditions the Treasurer thinks fit.
37 Ex gratia payments
(1) Notwithstanding anything contained in this Act, if the Treasurer is
satisfied that, by reason of special circumstances, it is proper to do
so, the Treasurer may direct the payment of an amount of money
ex gratia.
(2) Subsection (1) does not authorise a payment of money ex gratia
unless the special circumstances arose in the course of the
business of the Government of the Territory and unless money is
lawfully available to make the payment.
Part 6 Administration
38 Treasurer's Directions
(1) The Treasurer may, from time to time, issue directions to
Accountable Officers concerning the principles, practices and
procedures to be observed in the administration of the financial
affairs of the Territory and Agencies.
(2) The Accountable Officer of an Agency, the Accountable Officer of
the Central Holding Authority and each employee of an Agency
must comply with the Treasurer's Directions.
39 Delegation
(1) A person on whom a function is imposed or power conferred by or
under this Act (whether by reference to an office or otherwise) may,
by instrument in writing, delegate to a person or a person from time
to time holding, acting in or performing the duties of a named office,
designation or position any of those powers and functions, other
than this power of delegation.
Part 7 Miscellaneous
Financial Management Act 1995 21
(4) This section does not apply to:
(a) the power to make regulations;
(b) a power related to the investigation or detection of offences or
unlawful acts; or
(c) a power to delegate a power or function.
Part 7 Miscellaneous
41 Regulations
The Administrator may make regulations, not inconsistent with this
Act, prescribing all matters:
(a) required or permitted by this Act to be prescribed; or
(b) necessary or convenient to be prescribed for carrying out or
giving effect to this Act,
and in particular for or in relation to:
(c) the collection, receipt, custody, issue, expenditure, due
accounting for and care and management of all moneys by or
on behalf of the Territory or an Agency and whether inside or
outside of Australia;
(d) the recording, examination, inspection and checking of all
receipts and expenditures and the keeping of all necessary
accounts and records;
(e) the requirements in respect of records and documents;
(f) the custody, issue, sale or other disposal and writing off of
property and the proper accounting for and stocktaking of that
property;
(g) the liability of persons for or in relation to the loss of money or
property of the Territory or an Agency and the repair and
replacement of property damaged or destroyed;
(h) the apportionment of such liability between persons;
(j) the disposal of unclaimed property;
(k) the inspection and examination by a person other than the
Auditor-General and the checking of books, accounts,
statements, returns, records and vouchers prepared and kept
outside Australia in respect of money and property referred to
Part 8 Transitional provisions for Financial Management Amendment Act 2009
Financial Management Act 1995 22
in paragraph (c) outside of Australia;
(m) the issue of securities or kinds of securities in relation to
borrowings by the Territory, Agencies or other statutory
corporations;
(n) the inscription, transmission and transfer of such securities;
(p) the payment of interest in respect of such borrowings;
(q) the redemption of such securities;
(r) the conduct and management of registries established for the
purposes of this Act; and
(s) imposing penalties, not exceeding 50 penalty units, for a
breach of the Regulations.
Part 8 Transitional provisions for Financial
Management Amendment Act 2009
42 Definition
In this Part:
Allocation means an Allocation as defined in this Act immediately
before the commencement of this section.
43 Application of this Act
This Act applies in relation to an Appropriation Act that commences
after the commencement of this section, including an Appropriation
Act that provides for an appropriation in respect of a period before
the commencement of this section.
Note for section 43
The Appropriation (Additional for 2008-2009) Act 2009 provides for an
appropriation in respect of a period before the commencement of this Act.
44 References to Allocation
(1) Subsection (2) applies if:
(a) a provision of an Act expressed or expresses an idea by using
"Allocation"; and
(b) the provision is amended and uses "appropriation".
(2) The ideas must not be taken to be different merely because a
different word is used.
Part 8 Transitional provisions for Financial Management Amendment Act 2009
Financial Management Act 1995 23
(3) In a document, a reference to "Allocation" is taken to be a reference
to "appropriation" if the context permits.
ENDNOTES
Financial Management Act 1995 24
ENDNOTES
1 KEY
Key to abbreviations
amd = amended od = order
app = appendix om = omitted
bl = by-law pt = Part
ch = Chapter r = regulation/rule
cl = clause rem = remainder
div = Division renum = renumbered
exp = expires/expired rep = repealed
f = forms s = section
Gaz = Gazette sch = Schedule
hdg = heading sdiv = Subdivision
ins = inserted SL = Subordinate Legislation
lt = long title sub = substituted
nc = not commenced
2 LIST OF LEGISLATION
Financial Management Act 1995 (Act No. 4, 1995)
Assent date 21 March 1995
Commenced 1 April 1995 (Gaz S13, 31 March 1995)
Statute Law Revision Act 1997 (Act No. 17, 1997)
Assent date 11 April 1997
Commenced 1 May 1997 (Gaz G17, 30 April 1997, p 2)
Financial Institutions (Miscellaneous Amendments) Act 1997 (Act No. 23, 1997)
Assent date 2 June 1997
Commenced 2 June 1997
Financial Management Amendment Act 1999 (Act No. 75, 1999)
Assent date 23 December 1999
Commenced 26 January 2000 (Gaz G3, 26 January 2000, p 3)
Financial Management Amendment Act 2001 (Act No. 7, 2001)
Assent date 22 June 2001
Commenced 22 June 2001
Financial Management Amendment Act 2002 (Act No. 49, 2002)
Assent date 9 October 2002
Commenced 9 October 2002
Financial Management Amendment Act 2003 (Act No. 27, 2003)
Assent date 26 June 2003
Commenced 30 June 2003 (s 2)
Financial Management Amendment Act 2009 (Act No. 15, 2009)
Assent date 18 June 2009
Commenced 18 June 2009
ENDNOTES
Financial Management Act 1995 25
National Health Funding Pool and Administration (National Uniform Legislation) Act
2012 (Act No. 21, 2012)
Assent date 30 June 2012
Commenced 19 July 2012 (Gaz S36, 17 July 2012)
Local Government Amendment Act 2014 (Act No. 19, 2014)
Assent date 2 June 2014
Commenced s 16: 1 July 2014; s 18: 1 December 2014; rem: 2 June 2014,
(s 2)
Financial Integrity and Revenue Legislation Amendment Act 2021 (Act No. 18, 2021)
Assent date 29 June 2021
Commenced 1 July 2021 (s 2)
3 SAVINGS AND TRANSITIONAL PROVISIONS
s 6 Financial Management Amendment Act 2003 (Act No. 27, 2003)
4 GENERAL AMENDMENTS
General amendments of a formal nature (which are not referred to in the table
of amendments to this reprint) are made by the Interpretation Legislation
Amendment Act 2018 (Act No. 22, 2018) to: ss 1, 3, 8, 9 and 12.
5 LIST OF AMENDMENTS
s 3 amd No. 23, 1997, s 6; No. 75, 1999, s 4; No. 7, 2001, s 3; No. 49, 2002, s 3;
No. 15, 2009, s 3; No. 21, 2012, s 33; No. 19, 2014, s 26
s 4 amd No. 49, 2002, s 4
s 5 amd No. 49, 2002, s 5; No. 27, 2003, s 4; No. 15, 2009, s 4
s 6 amd No. 17, 1997, s 8; No. 75, 1999, s 5; No. 49, 2002, s 6; No. 21, 2012,
s 34
s 7 amd No. 75, 1999, s 6
s 8 amd No. 49, 2002, s 7
sub No. 27, 2003, s 5
s 9 amd No. 75, 1999, s 7
sub No. 27, 2003, s 5
amd No. 15, 2009, s 5; No. 18, 2021, s 4
s 10 amd No. 15, 2009, s 6; No. 18, 2021, s 5
s 11 amd No. 75, 1999, s 8; No. 49, 2002, s 8; No. 15, 2009, s 7; No. 18, 2021, s 6
s 13 amd No. 75, 1999, s 9; No. 49, 2002, s 9; No. 21, 2012, s 35
s 14 amd No. 49, 2002, s 10; No. 18, 2021, s 7
s 15 amd No. 49, 2002, s 11; No. 21, 2012, s 36
s 16 amd No. 17, 1997, s 8
sub No. 75, 1999, s 10
amd No. 49, 2002, s 12
s 18 amd No. 49, 2002, s 13; No. 15, 2009, s 15
s 19 amd No. 49, 2002, s 14; No. 15, 2009, s 8
s 19A ins No. 15, 2009, s 9
s 20 amd No. 49, 2002, s 15; No. 15, 2009, s 10
s 21 amd No. 49, 2002, s 16; No. 15, 2009, s 15
s 22 rep No. 15, 2009, s 11
s 23 amd No. 17, 1997, s 8; No. 75, 1999, s 11
rep No. 49, 2002, s 17
ENDNOTES
Financial Management Act 1995 26
s 24 sub No. 15, 2009, s 12
s 25 sub No. 75, 1999, s 12
rep No. 49, 2002, s 17
s 26 amd No. 49, 2002, s 18
s 27 amd No. 23, 1997, s 6; No. 49, 2002, s 19; No. 15, 2009, s 15; No. 21, 2012,
s 37
s 28 amd No. 75, 1999, s.13
s 29 amd No. 23, 1997, s 6; No. 49, 2002, s 20; No. 15, 2009, s 15
s 30 amd No. 49, 2002, s 21; No. 15, 2009, s 15
s 31 amd No. 75, 1999, s 14
s 34 amd No. 75, 1999, s 15; No. 15, 2009, s 15
s 36 sub No. 75, 1999, s 16
amd No. 49, 2002, s 22
s 38 amd No. 49, 2002, s 23
s 39 amd No. 15, 2009, s 15
s 40 amd No. 49, 2002, s 24; No. 15, 2009, s 15
rep No. 18, 2021, s 8
s 41 amd No. 49, 2002, s 25
pt 8 hdg sub No. 15, 2009, s 13
ss 42 – 44 sub No. 15, 2009, s 13
s 45 rep No. 15, 2009, s 13
s 46 ins No. 49, 2002, s 26
rep No. 15, 2009, s 13
sch rep No. 15, 2009, s 14