Advance to the Finance Minister – section 11 of Appropriation Act (No. 1) 2007-2008 (No. 4 of 2007-2008)

Administered by Department of Finance

Legislation au F2008L00203 Not in force Legislative Instrument

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Explanatory Statement

 

Appropriation Act (No. 1) 2007-2008, Section 11 – Advance to the Finance Minister

 

The instrument to which this explanatory statement relates

This explanatory statement relates to an instrument (the instrument) entitled “Advance to the Finance Minister – Section 11 of Appropriation Act (No. 1) 2007-2008”, dated 18 January 2008 and numbered 4 of 2007-2008.

The legislative authority under which the instrument is made

The Advance to the Finance Minister is a provision authorised by the annual Appropriation Acts and made available to the Finance Minister as a central contingency fund to provide urgent funding to agencies throughout the financial year.

In Appropriation Act (No. 1) 2007-2008, the Advance to the Finance Minister is provided for under section 11. This section indicates that amounts can be issued from the Advance to the Finance Minister, up to a limit of $175 million, if the Finance Minister is satisfied that:

(a)   There is an urgent need for expenditure, in the current year, that is not provided for, or is insufficiently provided for, in Schedule 1 (which sets out the amounts appropriated); and

(b)   The additional expenditure is not provided for, or is insufficiently provided for, in Schedule 1:

(i)               Because of an erroneous omission or understatement; or

(ii)               Because the additional expenditure was unforeseen until after the last day on which it was practicable to provide for it in the Bill for this Act before that Bill was introduced into the House of Representatives.

Exercise of the provision via the issue of a determination, has effect as if Schedule 1 of Appropriation Act (No. 1) 2007-2008 were amended to make provision for the additional expenditure specified in the determination.

Purpose of the instrument

The instrument determines that the Administered Expenses – Outcome 1 appropriation for the Department of Agriculture Fisheries and Forestry in Appropriation Act (No. 1) 2007-2008 be increased by $90,183,625. The additional amount is provided to meet income support payments for those affected by the drought and assistance to the horse industry in dealing with the outbreak of equine influenza.

Background

The background to the instrument is provided in the application made by the Department of Agriculture, Fisheries and Forestry for funding from the Advance to the Finance Minister.  The application is reproduced below.

 

 

 

 

APPLICATION FOR FUNDS - ADVANCE TO THE FINANCE MINISTER 2007-2008

 

 

Agency: Department of Agriculture, Fisheries and Forestry

 

Appropriation: Appropriation Act (No. 1) 2007-2008

 

Description: Administered Expenses - Outcome 1

 

Description of Outcome: More sustainable, competitive and profitable Australian agricultural, food, fisheries and forestry industries

 

Source of Available Funds

2005-2006

2006-2007

2007-2008

 

$

$

$

Appropriation Act (No. 1)

310,070,000

513,728,000

392,012,000

Appropriation Act (No. 3)

168,532,000

66,844,000

-

Appropriation Act (No. 5)

366,305,000

-

-

Section 32 transfer

-

(2,711,646)

-

TOTAL FUNDS AVAILABLE

844,907,000

577,860,354

392,012,000

 

 

 

 

TOTAL EXPENDITURE

811,903,432

524,519,695

357,065,501

 

 

 

 

TOTAL UNSPENT FUNDS

33,003,568

53,340,659

34,946,499

 

Funds Required:              $125,130,124

Funds Currently Unspent:              $34,946,499

Amount required from AFM:              $90,183,625

 

AFM Category:    Appropriation Act (No. 1) 2007-2008 Part 3 11 (1)(b)(ii)


Explanation of requirements from AFM:

The Department of Agriculture, Fisheries and Forestry (the Department) requires funds from the Advance to the Finance Minister to allow payments in January and February 2008 of funds for the various Administered Programs under Appropriation Act (No. 1) 2007-2008. 

Significant funds have been expended in providing for an increased take up in Drought Assistance – Interim Income Support and payments relating to the response for Equine Influenza. There have been a number of other drought related assistance packages which have arisen since the finalisation of Appropriation Bill (No. 1) 2007-2008 and subsequently approved as part of the 2007-08 MYEFO process.  The Department is therefore seeking additional funds totaling $90.2 million to allow payments to continue to be made for programs under Appropriation Act (No.1) 2007-2008 during January and February 2008 prior to the anticipated availability of funding from an emergency bill: Appropriation (Drought and Equine Influenza Assistance) Bill (No. 1) 2007-2008 which is not expected to be available before late February 2008.

Urgent:

The Department is planning to make an estimated $125.1 million in payments in January and February 2008.  As at 14 January 2008, the Department has remaining funding of $34.9 million. This funding is expected to run out by 21 January 2008 based on current projections. 

Unforeseen:

Since the 2007-08 Budget, there has been a significant increase in the take up of drought assistance – interim income support assistance in areas which have been drought declared and a strong take up of the expanded drought related entitlements packages announced by the Government. There has also been the widespread outbreak of equine influenza with considerable funding being provided to assist the horse industry cope with the economic consequences. These were unforeseen at the time of the preparation of the 2007-08 Budget and no funding was provided for these additional requirements.

Notes on the instrument

The instruments provides that the appropriation item listed in column 1 for the Department of Agriculture, Fisheries and Forestry be increased by the amount listed in column 3.  The instrument specifies that the additional amount be provided to meet income support payments for those affected by the drought and assistance to the horse industry in dealing with the outbreak of equine influenza.

Overview

The Appropriation Act (No. 1) 2007-2008 was enacted to provide the financial framework for the Commonwealth's budgetary requirements for the 2007-2008 financial year. This Act was introduced to address the need for additional funding to cover urgent and unforeseen expenditures, ensuring that the government could respond swiftly to emerging needs without the delay associated with amending the annual budget through the parliamentary process. The Act was enacted by the Parliament of Australia, reflecting the policy objective of enabling the government to manage fiscal contingencies effectively. This Act includes provisions for an Advance to the Finance Minister, allowing for the issuance of funds up to a specified limit when there is an urgent need for expenditure not accounted for in the initial appropriation schedules. This mechanism was designed to address unforeseen circumstances, such as natural disasters or outbreaks, which require immediate financial response. The explanatory statement for the instrument under Section 11 of the Act details an increase in the appropriation for the Department of Agriculture, Fisheries and Forestry by $90,183,625 to meet the urgent needs arising from the drought and equine influenza outbreak. The additional funding ensures that the department can continue its support payments without interruption, thus maintaining critical services during these challenging times.

Scope and Application

The Advance to the Finance Minister provision under the Appropriation Act (No. 1) 2007-2008, as detailed in the Explanatory Statement, provides the Finance Minister with a central contingency fund of up to $175 million to address urgent and unforeseen expenditures not initially provided for in the appropriations schedules. This fund can be accessed if the Finance Minister determines that there is an urgent need for additional expenditure that was either erroneously omitted or only became apparent after the appropriation bill was introduced into the House of Representatives. The instrument in question authorises an increase in the Administered Expenses – Outcome 1 appropriation for the Department of Agriculture, Fisheries and Forestry by $90,183,625 to cover unforeseen expenses related to drought assistance and equine influenza support. This application is made under section 11 of the Appropriation Act (No. 1) 2007-2008, and the additional funding is intended to ensure that payments can be made before the availability of a supplementary appropriation bill expected in late February 2008. The instrument specifically increases the appropriation to cater for the increased demand for drought assistance and the response to the equine influenza outbreak, both of which were unforeseen at the time of the budget preparation.

Key Provisions

The main operative sections of the Appropriation Act (No. 1) 2007-2008, specifically section 11, establish the framework for the Advance to the Finance Minister, a contingency fund that can be used to provide urgent funding to agencies when there is an unforeseen need for additional expenditure (s11(1)). This section allows the Finance Minister to issue amounts up to a limit of $175 million if they are satisfied that there is an urgent need for expenditure that is not provided for, or is insufficiently provided for, in the appropriations schedule (s11(1)(a) and (b)). This need must either arise due to an erroneous omission or understatement in the appropriations schedule, or because the additional expenditure was unforeseen until after the last practicable day to include it in the Appropriation Bill before it was introduced into the House of Representatives (s11(1)(b)(i) and (ii)). The issuance of funds under this section has the effect of amending the appropriations schedule as if the additional expenditure had been provided for in the original Act (s11(2)). The Act imposes several obligations on the Finance Minister and the relevant agencies. The Finance Minister must ensure that the funds are only used in cases of genuine urgency and that the expenditure is necessary and not provided for in the appropriations schedule (s11(1)). The agencies seeking funds must provide detailed justification for the additional expenditure, demonstrating that it was unforeseen and necessary to meet urgent needs (s11(1)). Furthermore, the agencies must ensure that they have exhausted all other available funds before applying for additional funds from the Advance to the Finance Minister (s11(1)). The Act also requires that the additional expenditure be specified in a determination, which must be made in accordance with the legislative framework provided by the Act (s11(2)). There are no explicit offences, penalties, or civil/criminal consequences outlined in the text for breaches of the provisions related to the Advance to the Finance Minister. However, misuse of the funds or failure to comply with the conditions for issuing additional funds could potentially lead to broader legal consequences under other sections of the Public Governance, Performance and Accountability Act 2013 or other relevant legislation. The Act stresses the importance of ensuring that funds are used for their intended purpose and that all legal and administrative requirements are met to avoid any misuse of public resources.

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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.