Page 1380 - Week 04 - Thursday, 26 March 2009

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Regulations could then be drafted when these international and interstate negotiations have been finalised.

Mr Speaker, I believe that this bill will strengthen the Animal Diseases Act through clarifying the intent of existing provisions and further providing the successful facilitation of any future animal disease outbreaks. Mr Speaker, I commend the bill to the Assembly.

Debate (on motion by Mrs Dunne) adjourned to the next sitting.

Financial Management Amendment Bill 2009

Ms Gallagher, pursuant to notice, presented the bill, its explanatory statement and a Human Rights Act compatibility statement.

Title read by Clerk.

MS GALLAGHER (Molonglo—Treasurer, Minister for Health, Minister for Community Services and Minister for Women) (10.17): I move:

That this bill be agreed to in principle.

Mr Speaker, today I am tabling the Financial Management Amendment Bill 2009. This bill provides an amendment to the Financial Management Act 1996 to allow the netting of GST administration costs from the territory’s GST revenue.

On 29 November 2008, the intergovernmental agreement—IGA—was agreed which implements a new framework for federal financial relations. As well as improving the quality and responsiveness of government services by reducing commonwealth prescriptions on service delivery, the agreement streamlines the administration of grant payments.

As part of the streamlining, the commonwealth government will net GST administration costs payable by the territory from the territory’s GST revenue. The amount of GST administrative costs that the territory pays is decided at the interjurisdictional level and uses a per capita methodology. Even though this netting will occur, the gross GST revenue and expenditure will still be separately reflected in financial statements.

The FMA requires all territorial expenditure to be made in accordance with an appropriation. Given the nature of the GST administration cost expenditure and that funding is no longer required to make the payments, it would be administratively efficient if the government no longer has to provide appropriation in order to authorise this expenditure under the FMA. This FMA amendment is required to allow GST administration costs to be netted from GST revenue without an appropriation being required.

This proposed amendment will not erode financial management controls or transparency, and does not impact the territory’s net operating result or cash position.

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