EXPLANATORY STATEMENT
Appropriation Act (No. 1) 2015‑2016
AFM Determination (No. 1 of 2015‑16)
Purpose of this Determination
The Advance to the Finance Minister (AFM) is provided under subsection 10(2) of Appropriation Act (No. 1) 2015‑2016 (the Act). Section 10 provides that amounts can be issued from the AFM, up to a limit of $295 million. The Finance Minister must, however, be satisfied there is an urgent need for expenditure, in the current year, that is not provided for, or is insufficiently provided for, in Schedule 1 of the Act, for reasons specified in paragraphs 10(1).
The Finance Minister is satisfied, based on information provided by the Australian Electoral Commission (AEC), that the additional expenditure was unforeseen until after the last day on which it was practicable to provide for it in the latest appropriation Bill relevant, the Appropriation Bill (No. 3) 2015‑2016 (the Bill), before it was introduced into Parliament: paragraph 10(1)(b) of the Act. The Bill was introduced into the House of Representatives on Thursday, 4 February 2016. An explanation of the additional expenditure is provided in this statement under the heading ‘Consultation and Impact’ below.
The effect of the determination is that Schedule 1 of Appropriation Act (No. 1) 2015‑2016 will have effect as if it were amended as specified in the determination.
Advances to the Finance Minister generally
The section providing for the AFM is contained in the annual Appropriation Acts. It enables the Finance Minister to facilitate urgent and unforeseen expenditure that was not within the contemplation of Parliament when the Appropriation Act was passed, and was therefore not provided for in Schedule 1 of the Appropriation Act.
A determination made under subsection 10(2) of Appropriation Act (No. 1) 2015‑2016 is a legislative instrument, but neither section 42 (disallowance) nor Part 4 of Chapter 3 (sunsetting) of the Legislation Act 2003 applies to the determination.
Statement of Compatibility with Human Rights
The annual Appropriation Acts perform an important constitutional function, by authorising the withdrawal of money from the Consolidated Revenue Fund for the broad purposes indentified in the annual Appropriation Acts.
However, as the High Court has emphasised, beyond this, the annual Appropriation Acts do not create rights and nor do they, importantly, impose any duties.
Given that the legal effect of annual Appropriation Acts is limited in this way, the increase of amounts in the annual Appropriation Acts through an AFM is not seen as engaging, or otherwise affecting, the rights or freedoms relevant to the Human Rights (Parliamentary Scrutiny) Act 2011.
Consultation and Impact
Consistent with Part 1 of the Legislation Act 2003, AEC was consulted in the preparation of this Determination.
The instrument determines that, in Appropriation Act (No. 1) 2015‑2016, the departmental item for AEC is increased by $101,237,000.
The additional amount is specifically provided to enable AEC to implement the electoral reforms recently agreed to by Parliament in the Commonwealth Electoral Amendment Act 2016, as well as to bring forward election preparations for the 2016 Federal Election. The Commonwealth Electoral Amendment Bill 2016 was introduced into Parliament on 22 February 2016.
Overview
The Appropriation Act (No. 1) 2015-2016 was enacted by the Parliament of Australia to address the issue of unforeseen urgent expenditures not covered in the initial appropriation bills. This Act allows the Finance Minister to issue advances to facilitate such expenditures, ensuring that the government can meet unexpected financial obligations. The Advance to the Finance Minister (AFM) provision, specified under subsection 10(2), enables the Finance Minister to make urgent appropriations up to a limit of $295 million, subject to satisfying certain conditions such as the urgency and unforeseen nature of the expenditure. The Act aims to provide flexibility in managing the government's finances by allowing for adjustments in appropriations when unforeseen circumstances arise, thus maintaining fiscal responsibility while addressing immediate needs.
Scope and Application
The Appropriation Act (No. 1) 2015-2016 pertains to the appropriation of funds from the Consolidated Revenue Fund for specific purposes identified in the Act. The AFM Determination (No. 1 of 2015-16) applies to the Finance Minister and the Australian Electoral Commission (AEC), as it relates to the provision of an advance to the Finance Minister to meet urgent and unforeseen expenditure requirements not accounted for in the Appropriation Bill. This Act operates within the Commonwealth jurisdiction, impacting the allocation of funds for governmental activities. The Act does not apply to private entities or individuals outside its scope of appropriations, nor does it extend to state or territory jurisdictions. The determination, being a legislative instrument, is exempt from the disallowance provisions under section 42 and the sunsetting provisions under Part 4 of Chapter 3 of the Legislation Act 2003. The additional appropriation of $101,237,000 is to facilitate the implementation of electoral reforms and expedite preparations for the 2016 Federal Election, as agreed by Parliament in the Commonwealth Electoral Amendment Act 2016.
Key Provisions
The Appropriation Act (No. 1) 2015-2016, as amended by the AFM Determination (No. 1 of 2015-16), allows for an advance to the Finance Minister (subsection 10(2)) of up to $295 million to cover urgent and unforeseen expenditures not provided for in the Appropriation Act. This determination permits the Finance Minister to issue funds for such expenditures if certain conditions are met, specifically, if there is an urgent need for expenditure that is not provided for or is insufficiently provided for in Schedule 1 of the Act (subsection 10(1)). This additional funding is intended to cover unforeseen costs that arise after the introduction of the latest appropriation bill.
The Act imposes obligations on the Finance Minister to ensure that any advance to himself or herself is justified by an urgent and unforeseen need for expenditure. This necessity must be verified based on information provided by relevant entities, such as the Australian Electoral Commission (AEC). The determination also requires that the additional expenditure must be due to circumstances that were not foreseeable at the time the Appropriation Bill (No. 3) 2015-2016 was introduced into Parliament.
In the event of a breach of the provisions outlined in the Appropriation Act, there are potential civil and criminal consequences. Although the Act itself does not explicitly detail these, general principles of administrative law and the legal framework governing public expenditure may apply. Penalties could range from fines to more severe sanctions, depending on the nature and severity of the breach. It is important to note that the determination is not subject to disallowance under section 42 of the Legislation Act 2003, nor does it fall under the sunsetting provisions outlined in Part 4 of Chapter 3 of the same Act.
The explanatory statement confirms that the determination does not affect any rights or freedoms relevant to the Human Rights (Parliamentary Scrutiny) Act 2011. This is because the annual Appropriation Acts, including the amendments made through an AFM, do not create rights but merely authorise the withdrawal of money from the Consolidated Revenue Fund for specified purposes. The additional funds allocated through this determination are intended to support the implementation of electoral reforms and expedite preparations for the 2016 Federal Election, as agreed upon by Parliament in the Commonwealth Electoral Amendment Act 2016.