Advance to the Finance Minister Determination (No. 2 of 2019-2020)

Overview

The Appropriation Act (No. 2) 2019-2020, enacted by the Australian Parliament, addresses the issue of urgent and unforeseen expenditures that were not initially accounted for in the annual appropriation process. Specifically, the Act provides for an Advance to the Finance Minister (AFM) under subsection 12(2) to facilitate such urgent needs up to a limit of $380 million. The AFM Determination (No. 2 of 2019-2020) was introduced to provide additional funding, amounting to $200 million, for unforeseen expenses related to the Australian Health Sector Emergency Response Plan for Novel Coronavirus. This determination was made necessary due to the unforeseen nature of the expenditure required for procuring masks and other emergency medical equipment, which became apparent after the last practicable opportunity to include such funding in the Appropriation Bill (No. 4) 2019-2020. The policy objective of this determination is to ensure that critical health sector responses are adequately funded in a timely manner, despite the constraints of the annual appropriation process.

Scope and Application

The Appropriation Act (No. 2) 2019-2020 and its associated AFM Determination (No. 2 of 2019-2020) apply to the Commonwealth of Australia, particularly the Department of Health, and the Finance Minister. This legislation provides a mechanism for the urgent allocation of funds in cases of unforeseen expenditure, as specified in the Act. The Act allows for an Advance to the Finance Minister (AFM) up to a limit of $380 million, contingent on the Finance Minister being satisfied that there is an urgent need for expenditure that is not provided for, or is insufficiently provided for, in Schedule 2 of the Act. This application is particularly relevant when such expenditure arises due to unforeseen circumstances, such as the need for additional funding for emergency health equipment to combat a novel coronavirus, as was the case here. The AFM Determination extends the application of the Act by amending Schedule 2 to reflect the necessary appropriation. It is important to note that this legislative instrument does not fall under the disallowance or sunsetting provisions of the Legislation Act 2003. The compatibility statement affirms that the AFM, by increasing the Administered Assets and Liabilities for Health, does not engage or affect any human rights as outlined in the Human Rights (Parliamentary Scrutiny) Act 2011.

Key Provisions

The main operative sections of this Determination are found in subsection 12(2) of the Appropriation Act (No. 2) 2019-2020. This subsection allows the Finance Minister to allocate funds, up to a limit of $380 million, to cover urgent and unforeseen expenditures that were not accounted for in the initial appropriation bills. The determination in question increases the Administered Assets and Liabilities for the Department of Health by $200,000,000, to be used specifically for the procurement of masks and other emergency medical equipment in response to the Novel Coronavirus. The obligations imposed by the Act on the parties involved include the requirement for the Finance Minister to be satisfied that there is an urgent need for the expenditure, which must be due to reasons specified in paragraphs 12(1)(a) and (b) of the Act. These reasons generally pertain to unforeseen circumstances or urgent needs that were not contemplated when the Appropriation Act was passed. The Finance Minister must also consult with the relevant departments, such as the Department of Health, to ensure that the additional funds are allocated appropriately and in accordance with the requirements of the Act. In terms of consequences for non-compliance, the Act does not explicitly state any specific offences, penalties, or civil/criminal consequences for breach of its provisions. However, it is important to note that any misuse or mismanagement of funds allocated through this determination could potentially lead to legal and administrative repercussions, including scrutiny and investigation by relevant oversight bodies. The determination itself, as a legislative instrument, is subject to the general legislative requirements and scrutiny processes under the Legislation Act 2003. The explanatory statement also confirms that the determination is not subject to the disallowance provisions under section 42 of the Legislation Act 2003, nor does it fall under the sunsetting provisions in Part 4 of Chapter 3 of the same Act. This means that the determination will remain in effect unless it is otherwise amended or repealed by future legislation. Additionally, the statement assures that the increase in funds does not affect any human rights, as the annual Appropriation Acts are not considered to create rights or impose duties beyond their constitutional function of authorising the withdrawal of funds from the Consolidated Revenue Fund. The consultation process, as outlined in the statement, involved the Department of Health, ensuring that the additional funding aligns with the urgent needs identified for the National Medical Stockpile as part of the Australian Health Sector Emergency Response Plan for Novel Coronavirus. This highlights the importance of timely and appropriate consultation with relevant stakeholders to ensure the effective and lawful use of allocated funds.