Explanatory Statement
Appropriation Act (No. 1) 2009-2010, Section 13 – 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 13 of Appropriation Act (No. 1) 2009-2010”, dated 4 February 2010 and numbered 2 of 2009-2010.
The legislative authority under which the instrument is made
The Advance to the Finance Minister (AFM) is a provision 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 is therefore not provided for in Schedule 1 of the Appropriation Act.
The Advance to the Finance Minister is provided for under section 13 of Appropriation Act (No. 1) 2009-2010. The discretionary power is exercisable upon the Finance Minister’s satisfaction of the matters specified in section 13. This section indicates that amounts can be issued from the Advance to the Finance Minister, up to a limit of $295 million, if the Finance Minister is satisfied that 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 that Act. The qualifying circumstances on the discretion of the Finance Minister to issue additional amounts under this provision are contained in subsections 13(1) (a) and (b) of that Act. The application from the Department of Health and Ageing has satisfied the Finance Minister that the additional expenditure was not provided for because the Government’s response to the H1N1 pandemic was announced after Appropriation Bill (No. 1) 2009‑2010 was prepared and introduced into Parliament.
Exercise of the power via the issue of a determination has effect as if Schedule 1 of Appropriation Act (No. 1) 2009-2010 were amended to make provision for the additional expenditure specified in the determination.
Purpose of the instrument
The instrument determines that the Administered Item for Outcome 14 for the Department of Health and Ageing in Appropriation Act (No. 1) 2009-2010 be increased by $6,440,080. The additional amount is provided to enable the Department of Health and Ageing to implement the Government’s response to the H1N1 influenza pandemic.
Background
The background to the instrument is provided in the application made by the Department of Health and Ageing for funding from the Advance to the Finance Minister, reproduced below.
The Government has proposed an additional $45.2 million in Appropriation Bill (No. 3) 2009‑2010 to fund the H1N1 response. When enacted, section 13(2) will provide that if Schedule 1 of the Act provides an amount for a particular expenditure and, prior to the commencement of the Act, the Finance Minister determines an amount from the AFM for the same expenditure, then the appropriation in the Act will be reduced by that amount. That provision will apply to the amount of $6,440,080 which has been determined under Section 13 of Appropriation Act (No. 1) 2009-2010.