EXPLANATORY STATEMENT
Issued by the authority of the Minister for Finance and Deregulation
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. |
Overview
The Advance to the Finance Minister Determination (No. 2 of 2012-2013) was enacted in 2013 to address the need for urgent and unforeseen expenditures that were not accounted for in the Appropriation Act (No. 1) 2012-2013. This legislation was introduced to allow the Finance Minister to provide additional funding when an urgent need for expenditure arises that is either not provided for or insufficiently provided for in the Act. The determination was made under the authority of subsection 13(2) of the Appropriation Act (No. 1) 2012-2013, which allows for the issuance of funds from the Advance to the Finance Minister up to a limit of $295 million, subject to certain conditions. The policy objective is to ensure that the government can respond to unforeseen circumstances that require immediate financial outlays, thereby supporting the operational needs of various departments without the need for protracted legislative processes.
Scope and Application
The Advance to the Finance Minister Determination (No. 2 of 2012-2013) concerns an urgent financial allocation under the Appropriation Act (No. 1) 2012-2013, allowing the Finance Minister to address unforeseen expenditures not initially contemplated in the Act's appropriation schedule. Specifically, the Act facilitates an increase in the administered item for Outcome 13 by $107,000,000.00 to support Health's acute care initiatives, including public hospital, acute care services, and public dental services. This additional funding is intended to be disbursed to Victorian Local Hospital Networks through the Local Hospital Networks Special Account. The instrument applies to the Department of Health and Ageing and specifically targets the acute care sector within the public health framework. The jurisdictional reach of this Act is limited to the Commonwealth level, with no explicit mention of state or territory application. The Act does not engage any of the applicable rights or freedoms outlined in the Human Rights (Parliamentary Scrutiny) Act 2011 and is compatible with international human rights standards. The application of this Act may be extended or restricted through subordinate instruments, although such mechanisms are not detailed in the provided text.
Key Provisions
The Advance to the Finance Minister Determination (No. 2 of 2012-2013) primarily focuses on an increase in funding for Outcome 13 within the Department of Health and Ageing, specifically to enhance acute care services, including public hospital and dental services. Section 13(2) of the Appropriation Act (No. 1) 2012-2013 allows the Finance Minister to allocate up to $295 million from the Advance to the Finance Minister if an urgent need for unforeseen expenditure arises. The determination here increases the administered item for Outcome 13 by $107,000,000.00, making it available for acute care initiatives, with a specific allocation to Victorian Local Hospital Networks.
The obligations imposed by this Act on the Department of Health and Ageing include ensuring that the additional funds are utilised for the specified purpose of improving access to acute care services, including public hospitals and dental services. The Health Department must also ensure that payments are made through the Local Hospital Networks Special Account as mandated. This determination underscores the importance of accountability and transparency in the allocation and use of public funds to meet urgent healthcare needs.
In terms of consequences for breach, the Act does not explicitly outline specific offences or penalties for misuse of funds under the Advance to the Finance Minister provisions. However, any misuse of government funds generally falls under broader legislative frameworks governing public sector financial management and accountability. Such breaches could result in civil or criminal penalties, depending on the severity and intent behind the misuse, potentially including fines or imprisonment. The overarching principle is that public funds must be used in accordance with the legislative intent and for the purposes specified, ensuring that any misallocation or misuse is addressed appropriately.