Advance to the Finance Minister Determination (No. 4 of 2012-2013)

Administered by Department of Finance

Legislation au F2013L01211 Not in force Legislative Instrument

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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.

Overview

The Appropriation Act (No. 1) 2012-2013, enacted by the Australian Parliament, addresses the need for urgent and unforeseen expenditure that may arise during the fiscal year but was not accounted for in the initial appropriation bills. This Act provides the legislative framework for the Advance to the Finance Minister (AFM), enabling the Finance Minister to facilitate such expenditure when there is an urgent need and it was not feasible to include these expenses in the original appropriation bills. The objective of this Act is to ensure that the government can respond effectively to unforeseen circumstances without the need for new legislation, thereby maintaining fiscal flexibility and responsiveness. The explanatory statement accompanying this Act highlights the importance of the AFM in managing unexpected financial requirements, particularly those that become apparent after the appropriation bills have been introduced into Parliament.

Scope and Application

The Advance to the Finance Minister Determination (No. 4 of 2012-2013) amends the Appropriation Act (No. 1) 2012-2013 to address unforeseen and urgent expenditure requirements that were not included in the original appropriation schedule. This determination applies to the Finance Minister and the Department of Health and Ageing, specifically affecting the administration of funds for certain health-related outcomes. The geographic reach of this legislation is national, as it involves the appropriation of funds from the Commonwealth Consolidated Revenue Fund. The additional expenditure of $12,500,000 for Health System Capacity and Quality and $2,200,000 for Biosecurity and Emergency Response is intended to support specific initiatives, such as payments to the Epworth HealthCare Geelong Hospital, grants to address Female Genital Mutilation, and payments to the Australian Red Cross Society. This determination is subject to the conditions stipulated in the Appropriation Act (No. 1) 2012-2013 and is not subject to disallowance or sunsetting provisions of the Legislative Instruments Act 2003. The instrument has been prepared in consultation with the Department of Health and Ageing, as required by the Legislative Instruments Act 2003.

Key Provisions

The main operative sections of the Advance to the Finance Minister Determination (No. 4 of 2012-2013) under the Appropriation Act (No. 1) 2012-2013 are detailed in subsection 13(2). This provision allows for the issuing of funds up to a limit of $295 million from the Advance to the Finance Minister (AFM) account, subject to the Finance Minister being satisfied that there is an urgent need for expenditure not accounted for in Schedule 1 of the Act. This determination is specifically invoked under paragraph 13(1)(b) because the additional expenditure was unforeseen until after the last practicable day for including it in the Appropriation Bill before it was introduced into the House of Representatives. The effect of this determination is to amend Schedule 1 of the Appropriation Act as if the additional amounts had been included from the outset. This Act imposes certain obligations on the Finance Minister and relevant departments, primarily ensuring that any expenditure authorised under the AFM is indeed urgent and unforeseen. The Finance Minister must be satisfied with the information provided by the relevant department, in this case, the Department of Health and Ageing (Health), that the expenditure falls under the specified criteria for unforeseen and urgent needs. Health must also ensure that the additional funds are used strictly for the purposes outlined in the determination, such as payments to the Epworth HealthCare Geelong Hospital and grants to organisations addressing Female Genital Mutilation, and payments to the Australian Red Cross Society. In terms of potential consequences for breach, the Act does not explicitly state penalties for misuse of the AFM funds. However, any misuse or unauthorised expenditure could lead to accountability issues and potential legal ramifications for both the Finance Minister and the department involved. The misuse of public funds is generally considered a serious matter and could result in administrative, civil, or criminal consequences depending on the nature and extent of the breach. It is also important to note that the determination is a legislative instrument and does not fall under the disallowance or sunsetting provisions of the Legislative Instruments Act 2003.

Area of Law: Finance & Banking Law; Health Law
Instrument: Statutory Instrument
Concepts: Definitions & Interpretation; Offence Provisions; Reporting & Disclosure Obligations; Regulatory Standards

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.

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