The instrument to which this explanatory statement relates

Advance to the Finance Minister Determination
(No. 2 of 2012-2013)

Date instrument was made

26 March 2013

The legislative authority under which the instrument is made

The Advance to the Finance Minister (AFM) is provided under subsection 13(2) of Appropriation Act (No. 1) 2012-2013 (the Act). Section 13 provides that amounts can be issued from the Advance to the Finance Minister, 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 one of the reasons specified in
paragraphs 13(1)(a) and (b).

The Finance Minister is satisfied, based on information provided by the Department of Health and Ageing (Health) that the additional expenditure was unforeseen until after the last day on which it was practicable to provide for it in the Bill for the Act before the Bill was introduced into the House of Representatives:
paragraph 13(1)(b).

A determination made under subsection 13(2) of Appropriation Act (No. 1) 2012-2013 is a legislative instrument, but neither section 42 (disallowance) nor Part 6 (sunsetting) of the Legislative Instruments Act 2003 applies to the determination.

Purpose and effect of the instrument

The instrument determines that the administered item for Outcome 13 for Health in Appropriation Act (No. 1) 2012‑2013 be increased by $107,000,000.00.  The administered item for Outcome 13 can be applied for the purpose of contributing to achieving the Outcome, namely: Acute Care – Improved access to public hospitals, acute care services and public dental services, including through targeted strategies, and payments to State and Territory Governments.

The additional amount is specifically provided to enable Health to make payments through the Local Hospital Networks Special Account, to Victorian Local Hospital Networks.

The effect of the determination is that Schedule 1 of Appropriation Act (No. 1) 2012‑2013 will have effect as if it were amended as specified in the determination.

Human Rights Impact Statement

This determination does not engage any of the applicable rights or freedoms outlined in the Human Rights (Parliamentary Scrutiny) Act 2011.

This determination is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the
Human Rights (Parliamentary Scrutiny) Act 2011, as it does not raise any human rights issues.

Background

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.

The background to the instrument is provided in the attached application made by Health for funding from the AFM.