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Advance to the Finance Minister – Section 14 of Appropriation Act (No. 1) 2008-2009 (No. 8 of 2008-2009)

Advance to the Finance Minister – Section 14 of Appropriation Act (No. 1) 2008-2009 (No. 8 of 2008-2009)

Administered by Department of Finance

Legislation au F2009L02600 Not in force Legislative Instrument

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Explanatory Statement

Appropriation Act (No. 1) 2008-2009, Section 14 – 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 14 of Appropriation Act (No. 1) 2008-2009”, dated 25 June 2009 and numbered 8 of 2008-2009.

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.

In Appropriation Act (No. 1) 2008-2009, the Advance to the Finance Minister is provided for under section 14. The discretionary power is exercisable upon the Finance Minister’s satisfaction of the matters specified in section 14. 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 is contained in subsections 14(1)(a) and (b) of that Act. This application satisfied the Finance Minister that the additional expenditure was not provided for because of unforeseen circumstances.

Exercise of the power via the issue of a determination has effect as if Schedule 1 of Appropriation Act (No. 1) 2008-2009 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 4 for the Department of Families, Housing, Community Services and Indigenous Affairs in Appropriation Act (No. 1) 2008‑2009 be increased by $10,539,463. The additional amount is provided to enable ex-gratia payments to victims of the Victorian bushfires and Queensland floods.

Background

The background to the instrument is provided in the application made by the Department of Families, Housing, Community Services and Indigenous Affairs for funding from the Advance to the Finance Minister. The application is reproduced below.

APPLICATION FOR FUNDS - ADVANCE TO THE FINANCE MINISTER 2008‑09

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

Appropriation: Appropriation Act (No. 1) 2008‑2009

Description: Administered expenses

Description of Outcome: Outcome 4 - Strong and resilient communities – Services and assistance that: help homeless people and low-income households to gain affordable and appropriate housing; promote community partnerships; and encourage participation in the local community by individuals, families, business and government

Source of Available Funds	2006-07	2007-08	2008-09
Appropriation Act (No. 1)	137,352,000	110,572,000	178,632,000
Appropriation (Economic Security Strategy) Act (No. 1) 2008‑09	-	-	6,430,000
Appropriation Act (No. 3)	-	35,764,000	1,160,000
Appropriation Act (No. 5)	-	-	11,091,000
Retained Prior Years Appropriation	-	1,928,326	1,905,775
TOTAL FUNDS AVAILABLE	137,352,000	146,336,000	199,218,775

TOTAL EXPENDITURE	92,453,074	115,841,678	164,391,902

TOTAL UNSPENT FUNDS	44,898,926	30,494,322	34,826,873

Funds Required (as at 24 June 2009): $45,366,336

Funds Currently Unspent: $34,826,873

Amount required from AFM: $10,539,463

AFM Category: Appropriation Act (No. 1) 2008-09 Part 3 14 (1)(b)

Explanation of requirements for AFM:

FaHCSIA requires funds urgently to fulfil the Australian Government commitments to victims of the Victorian bushfires and Queensland floods. FaHCSIA is responsible for delivering six of the announced initiatives:

Emergency relief of $5 million in 2008‑09 to meet the need for immediate assistance for families affected by the recent natural disasters in Victoria and Queensland.
Income Recovery Subsidy for employees, small business persons, and farmers who lost income as a direct result of the Victorian bushfires.
Income Recovery Subsidy for employees, small business persons, and farmers who lost income as a direct result of the North Queensland floods.
Income Recovery Subsidy for employees, small business persons, and farmers who lost income as a direct result of the North‑West Queensland floods.
Ex gratia assistance to victims of the Victorian Bushfires for funeral, memorial, and other costs.
Provision of $5,000 for funeral/memorial and any related costs (such as anniversary expenses) for the immediate families of Australians killed in the floods in North Queensland caused by Tropical Cyclone Ellie.

Urgent:

Ex-gratia payments to families, businesses and farms described above to those affected by the disasters have been paid out since 8 February 2009. It is expected that claims will continue to be made over the next 4 working days. The ex-gratia payments have recently been funded from within the Homelessness and Housing program. Without additional funding, it is likely that funds in Outcome 4, from which the remaining ex-gratia and Homelessness and Housing payments must be made, will be exhausted by 30 June 2009. This AFM is necessary in order to avoid being unable to make required payments to those eligible.

Unforeseen:

The Victorian bushfires and Queensland floods were unexpected natural disasters. The magnitude of these events and the need in the community arising from damage to homes, businesses, and farms could not have been predicted.

Overview

The Appropriation Act (No. 1) 2008-2009 was enacted to provide the Commonwealth with the legal authority to allocate funds for the government’s spending requirements throughout the fiscal year. The Act was introduced to address the need for a legal framework to govern the appropriation of public funds and ensure that government spending is authorised by Parliament. This Act, along with others, enables the government to manage its finances effectively and transparently. The Advance to the Finance Minister provision under section 14 of the Appropriation Act (No. 1) 2008-2009, allows the Finance Minister to address urgent and unforeseen expenditures not originally budgeted for in the Appropriation Act. This discretionary power is exercised by the Finance Minister when there is an urgent need for additional funding due to unforeseen circumstances, such as natural disasters, ensuring the government can respond promptly to such events. The policy objective of this provision is to provide flexibility in managing government finances in response to emergencies and unexpected needs. The Advance to the Finance Minister provision was exercised in this instance to address the urgent need for additional funding to support ex-gratia payments to victims of the Victorian bushfires and Queensland floods. This was deemed necessary as the original budget did not account for these unforeseen natural disasters, and the existing funds were insufficient to cover the required payments. The determination under section 14 of the Appropriation Act (No. 1) 2008-2009 allowed for an additional $10,539,463 to be allocated to the Department of Families, Housing, Community Services and Indigenous Affairs to meet these immediate needs. This funding was critical to ensure that the government could fulfil its commitments to provide relief to those affected by these disasters.

Scope and Application

The Advance to the Finance Minister (AFM) provision contained in the Appropriation Act (No. 1) 2008-2009, specifically section 14, grants the Finance Minister the authority to facilitate urgent and unforeseen expenditure not initially contemplated by Parliament when the Appropriation Act was passed. This discretionary power is exercisable when the Finance Minister is satisfied that there is an urgent need for expenditure in the current year that is either not provided for or insufficiently provided for in Schedule 1 of the Appropriation Act. The AFM can be used to issue additional amounts, up to a limit of $295 million, to address such needs. This authority extends to the Commonwealth of Australia and applies to any urgent and unforeseen expenditures that arise within its jurisdiction. The Act does not specify exclusions, but the exercise of the AFM must be justified by urgent and unforeseen circumstances. The Act allows for the extension of its application through subordinate instruments, such as determinations that amend Schedule 1 of the Appropriation Act to account for additional expenditure.

Key Provisions

Section 14 of the Appropriation Act (No. 1) 2008-2009 provides for an Advance to the Finance Minister, allowing the Finance Minister to authorise additional funding for urgent and unforeseen expenditures not initially covered by the Act. Under subsection 14(1)(a), the Finance Minister can authorise an advance up to $295 million if they are satisfied that there is an urgent need for expenditure that is not, or is insufficiently, provided for in Schedule 1 of the Act. Subsection 14(1)(b) specifies that the additional funds can be used for unforeseen circumstances. The instrument dated 25 June 2009, numbered 8 of 2008-2009, exercises this power to increase the Administered Item for Outcome 4 within the Department of Families, Housing, Community Services and Indigenous Affairs by $10,539,463 to cover ex-gratia payments to victims of the Victorian bushfires and Queensland floods. The Act imposes specific obligations on the Finance Minister when exercising the power under section 14. The Minister must be satisfied that the additional expenditure is both urgent and due to unforeseen circumstances. The instrument reflects this by detailing the urgent need for ex-gratia payments to victims of the natural disasters, explaining that without additional funding, the department would exhaust its available funds by the end of June 2009. The instrument also specifies that the additional funds will be allocated to Outcome 4, ensuring that payments to affected families, businesses, and farms can continue. There are no specific offences, penalties, or civil/criminal consequences outlined for breaches of section 14 in the explanatory statement. However, misuse of funds or failure to properly account for the additional expenditure could potentially lead to scrutiny, audits, or financial oversight reviews by relevant authorities, although such consequences are not explicitly detailed in the provided text. The primary focus is on ensuring that the additional funds are used for their intended purpose and that the urgent needs of disaster victims are met.

Area of Law: Finance & Banking Law
Instrument: Statutory Instrument
Concepts: Definitions & Interpretation; Commencement Provisions; 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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