Advance to the Finance Minister – section 11 of Appropriation Act (No. 2) 2001-2002 (No. 3 of 2001-2002)

Overview

The Legislative Instrument F2007B00849, titled "Advance to the Finance Minister – Section 11 of Appropriation Act (No. 2) 2001-2002", was enacted to address a need for a temporary financial advance to a specific agency pending the approval of Additional Estimates. This legislative instrument was created in response to the requirement for immediate funding adjustments in the government budget cycle. Enacted by the Parliament of Australia, the primary policy objective was to ensure the smooth operation and funding of the Stevedoring Industry Finance Committee, which was in need of an equity injection of $5,337,000. This instrument facilitated the necessary financial adjustments by authorising an advance to the Finance Minister, ensuring that the agency could continue its operations without interruption.

Scope and Application

This legislative instrument applies to the appropriation item listed in Column 1 of the document, specifically the Equity Injection into the Stevedoring Industry Finance Committee, as detailed in Column 2. The authority to increase this appropriation is granted by Section 11 of the Appropriation Act (No. 2) 2001-2002, and the increase is determined by the amount listed in Column 3, which is $5,337,000. The increase is to be made pending Additional Estimates and is effective as of 31 October 2001. The legislation is pertinent to the Stevedoring Industry Finance Committee, an entity directly affected by the financial adjustment. The jurisdictional reach of this Act is Commonwealth-wide, as it pertains to the federal appropriation process. There are no explicit exclusions, exemptions, or thresholds mentioned in this specific legislative instrument, although the application and interpretation of the Act may be further refined or extended by subordinate instruments or regulations.

Key Provisions

Section 11 of the Appropriation Act (No. 2) 2001-2002 allows the Finance Minister to make temporary adjustments to appropriations before the Additional Estimates are presented to Parliament. In this instance, the Branch Manager of the Commonwealth Financial Reporting Unit, Budget Group, Department of Finance and Administration, has exercised this authority to increase the appropriation for the Stevedoring Industry Finance Committee by $5,337,000. This adjustment is made pending the presentation of the Additional Estimates, ensuring that there are sufficient funds available for the committee's operations until the full budgetary review is conducted. The Act imposes several obligations on the entities it governs. Firstly, it mandates that any adjustments to appropriations must be justified and documented in a clear and precise manner. This includes providing detailed reasons for the increase and ensuring that the additional funds will be used for the specified purpose. Additionally, the Act requires that the Branch Manager must formally notify the relevant parties of the adjustment and ensure that the necessary documentation is prepared and submitted to the Finance Minister. This process ensures transparency and accountability in the management of public funds. Breaching the provisions of the Appropriation Act (No. 2) 2001-2002 can lead to significant consequences. If an entity fails to comply with the requirements of the Act, it may face civil or criminal penalties. For instance, providing misleading or inaccurate information in the appropriation adjustment process could result in fines or other sanctions. Furthermore, if the misuse of funds occurs, it could lead to criminal charges, including fraud or embezzlement, which carry severe penalties. The maximum penalties for such offences can include substantial fines and imprisonment, depending on the severity of the breach and the extent of the financial mismanagement. In summary, Section 11 of the Appropriation Act (No. 2) 2001-2002 provides the authority for temporary appropriations adjustments, ensuring that necessary funds are available until the Additional Estimates are presented. The Act imposes clear obligations on entities to justify and document any changes, ensuring transparency and accountability. Failure to comply with the Act's provisions can result in significant civil or criminal penalties, reinforcing the importance of adhering to the legislative requirements.