Financial Framework

The financial framework underpins the appropriation, expenditure and use of money and resources within the Australian Government. It is an important feature of an accountable and transparent public sector and informs the daily work of Australian Government agencies, office holders and their employees.

Legislation

• Financial Management and Accountability Act 1997 (FMA Act) which encompasses Department and Agencies.
• Commonwealth Authorities and Companies Act 1997 (CAC Act) which encompasses Authorities and Companies.

Financial Management Policy Guidance

• Agency Banking - the framework governing the conduct of banking by Government bodies.
• Competitive Neutrality - ensuring Australian government business activities do not have competitive advantages over competitors.
• Cost Recovery - the policy which Government entities apply when recovering costs.
• Foreign Exchange - the policy for Government entities managing foreign currency transactions.
• Special Accounts - Appropriations made under either section 20 or 21 of the FMA Act.

Discretionary Compensation Mechanisms

The Australian Government may provide discretionary assistance in some cases by act of grace payments, or by waiving debts owed to the Australian Government. In general, this assistance may be granted where it is considered that the Australian Government has a moral responsibility to provide assistance, rather than a legal responsibility.

Governance

• Governance Arrangements - the structure and governance arrangements for Australian Government bodies
• Joint Committee of Public Accounts and Audit - Finance's role in relation to reports.
• Outcomes and Outputs Framework - reporting and management of the framework.
• Taxation of Government Entities - how GST applies to Agencies.