Advance to the Finance Minister – Section 13 of Appropriation Act (No. 1) 2010-2011 (No. 2 of 2010-2011)

Administered by Department of Finance

Legislation au F2011L01014 Not in force Legislative Instrument

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Explanatory Statement

 

Appropriation Act (No. 1) 2010-2011, 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) 2010-2011”, dated 6 June 2011 and numbered 2 of 2010-2011.

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) 2010-2011. 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 Families, Housing, Community Services and Indigenous Affairs (FaHCSIA) has satisfied the Finance Minister that the additional expenditure was not provided for because of erroneous omission.

Exercise of the power via the issue of a determination has effect as if Schedule 1 of Appropriation Act (No. 1) 2010-2011 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 5 for FaHCSIA in Appropriation Act (No. 1) 2010-2011 be increased by $14,159,000. The additional amount is provided to enable FaHCSIA to meet increased expenditure related to the Helping Children with Autism Early Intervention program.

Background

The background to the instrument is provided in the application made by FaHCSIA for funding from the Advance to the Finance Minister, reproduced below.


APPLICATION FOR ADVANCE TO THE FINANCE MINISTER 

2010-2011

 

Agency: Department of Families, Housing, Community Services and Indigenous Affairs

Appropriation: Appropriation Act (No. 1) 2010-2011

Description: Administered item

Outcome: Outcome 5 – An adequate standard of living, improved capacity to participate economically and socially and manage life-transitions for people with disability and/or mental illness and carers through payments, concessions, support and care services.

Source of Available Appropriations

2010-2011

 

2009-2010

All other years

 

$

$

$

Appropriation Act 1

 

 

 

Program 5.1: Targeted Community Care

141,133,000

 

140,081,000

 

 

Program 5.3: Income Support for Carers

2,800,000

 

2,644,000

 

 

Program 5.4: Services and Support for People with Disability

308,319,000

 

301,145,000

 

 

Program 5.5: Support for Carers

11,312,000

 

14,379,000

 

 

Retained Prior Year appropriations

 

 

                0

TOTAL APPROPRIATIONS AVAILABLE

$463,564,000

 

$458,249,000

 

 

TOTAL AMOUNT SPENT (as at cob 19 May 2011 – will change daily)

$433,520,492

$458,249,000

 

 

TOTAL UNSPENT APPROPRIATIONS

$30,043,508

$0         

$0

 

Appropriation Required: $44,202,508

Appropriations Available: $30,043,508

Amount required from AFM: $14,159,000

AFM Category:

unforeseen – “Appropriation Act (No. 1) 2010-2011, Part 3, section 13 (1)(b)  

Explanation of requirements from AFM:

The Helping Children with Autism Early Intervention program (HCWA EI) is a basic payment scheme to assist parents with Autistic children to receive multidisciplinary evidence-based early interventions to facilitate improvement in cognitive, emotional and social development prior to a child starting school.

HCWA EI is a demand-driven scheme, and predicting future expenditure is difficult. HCWA EI anticipated payments for the remainder of the financial year at a rate of $187,000 per day.  This program’s funding was exhausted in February 2011.  Since that time, funds have been sourced from other programs within the Outcome.

Expenditure under HCWA EI cannot be definitively predicted because it is affected by a wide range of variables, including:

  • the number of parents registering;
  • the diagnosis of Autism; and
  • the availability of special services being provided.

 

Urgent:

The department is close to exhausting all relevant available appropriations to fund its commitments for Outcome 5. Uncommitted funds from within the outcome have been used to cover expenditure for the HCWA EI program since February 2011. Those programs are now required to meet their payment obligations and require the funds.  The HCWA EI program is also expected to pay a further $6.2m in demand driven payments.

In the event that the Outcome has insufficient funds to make payments for the HCWA EI, this would result in the untenable position of eligible parents of Autistic children having their assistance delayed at a time of personal and financial hardship. Such an outcome would also result in reduced public confidence in the Government’s administration of the HCWA EI Program.

Unforeseen:

HCWA EI is a demand driven program available to parents of Autistic Children. Given the unknown rate of registration and claim patterns of families, it is impossible to predict the likely expenditure for the program in any given year with any certainty.

FaHCSIA will make payments $477,723,000 through to 30 June 2011 under Outcome 5.

Based on the current payment schedule, available appropriation for outcome 5 will be exhausted by 7 June 2011.

An AFM of $14.159 million is sought to cover increased expenditure for HCWA EI. To date, funds have been utilised from other programs within the Outcome to cover Autism payments.

The $14.159 million AFM will cover payments for:

  • Services and Support for People with a Disability - $7.01m
  • Targeted Community Care - $2 m
  • Income Support for Carers - $0.389m
  • HCWA EI - $4.76m

The AFM will provide appropriation authority to cover the balance of payments for all programs in Outcome 5, including increased Autism payments, above the available appropriation amount.

An amount of $14.738 million for Helping Children with Autism Early Intervention and Better Start for Children with a Disability, is included in Appropriation Bill (No. 1) 2011-2012.

Forecast to 30 June 2011:

Based on current trends, current projection of the actual expenditure that will be required under HCWA EI in 2010-11 is approximately $45 million (an increase in expenditure of $21 million for the 2010-11 financial year).

Based on the trends and expenditure patterns for this financial year, it is possible that an additional Advance from the Finance Minister will be required before 30 June 2011.

 

Overview

The Appropriation Act (No. 1) 2010-2011 was enacted to provide the financial framework for the Australian Government's appropriation and expenditure for the fiscal year 2010-2011. This Act was introduced to address the necessity for the Finance Minister to manage urgent and unforeseen expenditures that were not initially anticipated when the Act was passed. The Act was enacted by the Australian Parliament to provide a legal basis for the allocation and control of public funds. The policy objective behind the Act is to ensure that the government can respond to unforeseen circumstances and urgent needs that require immediate financial outlay, thereby maintaining the operational continuity of essential services and programs. Under Section 13 of the Act, the Finance Minister is granted the authority to issue an advance, up to a specified limit, to cover such urgent and unforeseen expenditures, ensuring the government can meet its obligations promptly and effectively. The explanatory statement pertains to the use of the Advance to the Finance Minister (AFM) provision under Section 13 of the Appropriation Act (No. 1) 2010-2011, allowing the Finance Minister to address urgent and unforeseen expenditure needs that were not included in the original appropriation schedule. In this instance, the Department of Families, Housing, Community Services and Indigenous Affairs (FaHCSIA) sought an additional $14,159,000 to cover increased expenditure related to the Helping Children with Autism Early Intervention program. This program, which aids parents of autistic children in accessing early interventions, faced an unexpected rise in demand, leading to the exhaustion of available appropriations earlier than anticipated. The requested AFM was approved to ensure that the program could continue without interruption, preventing potential delays in assistance to families and maintaining public confidence in the government’s administration of the program.

Scope and Application

The Appropriation Act (No. 1) 2010-2011, specifically under Section 13, establishes a mechanism for the Finance Minister to provide an advance to cover urgent and unforeseen expenditures not initially contemplated in the Appropriation Act. This provision allows for an advance of up to $295 million if the Finance Minister is satisfied that there is an urgent need for expenditure not accounted for in the Act's Schedule 1. The application of this provision is exercised by the Finance Minister based on the specific conditions outlined in the Act, such as the necessity for unforeseen expenditure due to erroneous omissions. The instrument in question pertains to an increase in the Administered Item for Outcome 5 of the Department of Families, Housing, Community Services and Indigenous Affairs (FaHCSIA) to cover additional expenditure for the Helping Children with Autism Early Intervention program, amounting to $14,159,000. This additional funding is crucial to meet the increased demand for services, which was not accurately projected due to the unpredictable nature of the program's requirements. The Act applies to the Finance Minister and FaHCSIA, with the authority to issue advances limited to the Commonwealth jurisdiction. The scope of the Act does not explicitly mention exclusions or exemptions, but the necessity for the advance must align with the Act’s criteria for urgency and unforeseen circumstances. The application of this Act may be extended or restricted through subordinate instruments, which could include regulations or further legislative amendments that define specific parameters or additional conditions for the issuance of advances.

Key Provisions

Section 13 of the Appropriation Act (No. 1) 2010-2011 provides for an Advance to the Finance Minister (AFM) of up to $295 million. This discretionary power is exercisable by the Finance Minister when they are satisfied that there is an urgent need for expenditure that was not provided for, or is insufficiently provided for, in Schedule 1 of the Act. Specifically, the provision allows the Finance Minister to issue additional amounts to the Administered Item for Outcome 5 of the Department of Families, Housing, Community Services and Indigenous Affairs (FaHCSIA) to meet unforeseen or urgent expenditure, as outlined in section 13(1)(a) and (b). The purpose of this particular instrument is to increase the Administered Item for Outcome 5 by $14,159,000 to address increased expenditure related to the Helping Children with Autism Early Intervention program. The Act imposes several obligations on the parties involved. The Finance Minister must be satisfied that the additional expenditure is both urgent and unforeseen, and that it falls within the scope of the Act's provisions. The Department of Families, Housing, Community Services and Indigenous Affairs must demonstrate a genuine need for the additional funds and provide a detailed explanation of how the funds will be utilised. The determination issued by the Finance Minister, which grants the additional funds, must be in line with the statutory requirements and must detail the specific appropriation and the rationale for the expenditure. Failure to comply with the requirements of the Act may result in civil or criminal consequences. If the Finance Minister issues an Advance without satisfying the conditions outlined in section 13, they could be subject to legal challenges or penalties. Similarly, if the Department of Families, Housing, Community Services and Indigenous Affairs misuses the funds or does not use them for the specified purpose, it could face financial penalties or legal action. While the Act does not specify maximum penalties for breaches, such actions could result in significant repercussions, including financial penalties and legal proceedings.

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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.