EXPLANATORY STATEMENT
Appropriation Act (No. 1) 2012-2013
Advance to the Finance Minister Determination (No. 4 of 2012-2013)
Purpose of this Determination
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 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 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). An 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 Appropriation Act (No. 1) 2012‑2013 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.
The background to the instrument was provided by Health in their application forms for funding from the AFM. Health have advised that the expenditure was unforeseen as the decisions were taken and announced after the last day on which it was practicable to provide for expenditure for it in either Appropriation Bill (No. 1) 2012-2013 (introduced into the House of Representatives on Tuesday,
8 May 2012) or Appropriation Bill (No. 3) 2012-2013 (introduced into the House of Representatives on Thursday, 7 February 2013).
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.
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 3 of the Legislative Instruments Act 2003, Health was consulted in the preparation of this Determination.
The instrument determines that, in Appropriation Act (No. 1) 2012‑2013, the administered item for Outcome 10 for Health is increased by $12,500,000, and the administered item for Outcome 14 for Health is increased by $2,200,000.
The administered item for Outcome 10 can be applied for the purpose of contributing to achieving the Outcome, namely: Health System Capacity and Quality – Improved long‑term capacity, quality and safety of Australia’s health care system to meet future health needs, including through investment in health infrastructure, international engagement, consistent performance reporting and research.
The additional amount for Outcome 10 is specifically provided to enable Health to make payments to the Epworth HealthCare Geelong Hospital and to provide grants to organisations to address Female Genital Mutilation.
The administered item for Outcome 14 can be applied for the purpose of contributing to achieving the Outcome, namely: Biosecurity and Emergency Response – Preparedness to respond to national health emergencies and risks, including through surveillance, regulation, prevention, detection and leadership in national health coordination.
The additional amount for Outcome 14 is specifically provided to enable payments to be made to the Australian Red Cross Society.