EXPLANATORY STATEMENT
Supply Act (No. 1) 2020‑2021
AFM Determination (No. 3 of 2020‑2021)
Purpose of this Determination
The Advance to the Finance Minister (AFM) is provided under subsection 10(2) of Supply Act (No. 1) 2020‑2021 (the Act). Section 10 provides that amounts can be allocated from the AFM, up to a limit of $16,000 million. This AFM provision is reduced by the value of AFMs issued under Appropriation Act (No. 5) 2019‑2020. No allocations were made from Appropriation Act (No. 5) 2019‑2020. One allocation has been made from Supply Act (No. 1) 2020‑2021 for $230.080 million. The amount available for allocation from Supply Act (No. 1) 2020‑2021 is $15,769.920 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 10(1)(a) and (b).
The Finance Minister is satisfied, based on information provided by the Department of Health (Health) that the additional expenditure was unforeseen until after the last day on which it was practicable to provide for it in Supply Bill (No. 1) 2020‑2021 (the Bill), before it was introduced into the House of Representatives (paragraph 10(1)(b)). The Bill was introduced into the House of Representatives on Monday, 23 March 2020.
The Australian Government has agreed that this additional expenditure is essential following the entering into of agreements with AstraZeneca, CSL and Seqirus for the supply and production of the University of Oxford and University of Queensland COVID-19 Vaccine candidates and essential in order to participate in the COVAX Facility. The need for additional expenditure is urgent as payments need to be made before appropriations will be available from Appropriation Bill (No. 1) 2020‑2021 once enacted.
Further explanation of the additional expenditure is provided in this determination under the heading ‘Consultation and Impact’ below.
The effect of the determination is that Schedule 1 of Supply Act (No. 1) 2020‑2021 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 relevant 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 Supply Act (No. 1) 2020‑2021 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 identified 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, Health was consulted in the preparation of this Determination.
The instrument determines that, in Supply Act (No. 1) 2020‑2021, the administered item for Outcome 5 for Health is increased by $808,754,000.
This AFM is specifically provided to enable Australians to be able to receive COVID-19 vaccines, once they are available. The Government announced agreements made with AstraZeneca, CSL and Seqirus on 7 September 2020 in the joint media release of the Prime Minister, the Minister for Health and the Minister for Industry Science and Technology, Australia Secures Onshore Manufacturing Agreements for Two COVID-19 Vaccines. The Government also announced its agreement to participate in the COVAX Facility on 23 September 2020 in the media release of the Minister for Health, Australia Now Eligible to Purchase COVID‑19 Vaccine Doses through COVAX.