Determination to Amend Reduction of Appropriations Upon Request (No. 1 of 2009-2010)

Administered by Department of Finance

Legislation au F2010L01237 Not in force Legislative Instrument

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EXPLANATORY STATEMENT

Issued by the authority of the Minister for Finance and Deregulation

The instrument to which this explanatory statement relates

Determination to Amend Reduction of Appropriations Upon Request (No. 1 of 2009-2010)

Date instrument was made

4 May 2010

The legislative authority under which the instrument is made

Subsection 9(1) of Appropriation Act (No. 1) 20072008 and subsection 10(2) of Appropriation Act (No. 1) 2008-2009 enable the Minister for Finance and Deregulation (Finance Minister) to make a Determination reducing a departmental item.

A determination made under these subsections must be in accordance with a written request made to the Finance Minister by the responsible Minister for the entity.

Subsection 33(3) of the Acts Interpretation Act 1901 enables the Finance Minister to revoke a determination reducing a departmental item.

Purpose and effect of the instrument

This Determination revokes a determination made in the Instrument Determination to Reduce Appropriations Upon Request (No. 5 of 2009-2010).

The effect of this Determination is to revoke the reduction made to the departmental item for the Department of the Prime Minister and Cabinet (PM&C) in Appropriation Act (No. 1) 2009-2010.

 

Schedule 1 of this Determination provides that the departmental item for the Department of the Prime Minister and Cabinet (PM&C) in Appropriation Act (No. 1) 2008-2009 be reduced by $313,447.

 

Schedule 2 of this Determination provides that the departmental item for the Department of the Prime Minister and Cabinet (PM&C) in Appropriation Act (No. 1) 2007-2008 be reduced by $2,093,376.

Background

The Parliamentary Secretary to the Prime Minister wrote to the Finance Minister seeking his agreement to reduce the departmental item in Appropriation Act (No. 1) 2009-2010 for PM&C by $2,406,823. A Determination was signed on 8 February 2010 reducing appropriation that had been provided for the Asia Pacific Economic Cooperation (APEC) Taskforce and for the Community Cabinets measure, which was no longer required.

The Parliamentary Secretary has written to the Finance Minister again advising that as the funding in question was appropriated to PM&C in 2007-08 and 2008-09, their request to reduce departmental appropriation should have been in respect of the years in which the amounts were appropriated to PM&C, not in respect of their 2009-10 appropriation.

The Parliamentary Secretary sought the Finance Ministers agreement to revoke the original reduction determination to restore PM&Cs 2009-10 departmental appropriation in that year and to reduce PM&Cs departmental appropriations for 2007-08 and 2008-09.

Notes on the Instrument

Schedules 1 and 2 to the Determination contain tables listing the affected agency in column 1, the appropriation Act and appropriation item in column 2, the legislative authority in column 3, which through the request by the responsible Minister in column 4, is reduced by the amount in column 5.

In accordance with the Legislative Instruments Act 2003, PM&C was consulted in the preparation of this Determination.

 

Overview

The Determination to Amend Reduction of Appropriations Upon Request (No. 1 of 2009-2010), issued under the authority of the Minister for Finance and Deregulation, addresses a specific issue arising from a previous reduction in departmental appropriations for the Department of the Prime Minister and Cabinet (PM&C). Enacted on 4 May 2010, this instrument revokes a previous determination that had reduced appropriations for PM&C for the financial year 2009-2010. The original reduction was intended to address an over-appropriation related to the Asia Pacific Economic Cooperation (APEC) Taskforce and the Community Cabinets measure, which were no longer required. However, subsequent advice indicated that the funding in question was initially appropriated to PM&C in the financial years 2007-2008 and 2008-2009, necessitating a correction to the affected years. Consequently, this determination seeks to restore the 2009-2010 departmental appropriation and appropriately adjust the appropriations for the earlier financial years.

Scope and Application

The Determination to Amend Reduction of Appropriations Upon Request (No. 1 of 2009-2010) pertains to the revocation of a previously made reduction to the departmental item for the Department of the Prime Minister and Cabinet (PM&C) in the Appropriation Act (No. 1) 2009-2010. The legislation authorises the Minister for Finance and Deregulation to reduce departmental items following a written request from the relevant responsible Minister. This Determination specifically revokes a reduction of $2,406,823 that had been applied to the PM&C for the fiscal year 2009-2010 and reallocates the reductions to the years 2007-2008 and 2008-2009, with reductions of $2,093,376 and $313,447 respectively. The revocation and reallocation were prompted by the Parliamentary Secretary to the Prime Minister who identified an error in the allocation of the reductions, suggesting they should have been applied to the years in which the funding was initially appropriated to the PM&C. This determination is effective within the Commonwealth jurisdiction, as it relates to the appropriation acts of the Commonwealth of Australia.

Key Provisions

The primary operative sections of this legislation are subsection 9(1) of the Appropriation Act (No. 1) 2007-2008 and subsection 10(2) of the Appropriation Act (No. 1) 2008-2009, which empower the Minister for Finance and Deregulation to make a determination reducing a departmental item based on a written request from the responsible Minister. This Determination revokes a previous reduction made to the Department of the Prime Minister and Cabinet's (PM&C) appropriations in Appropriation Act (No. 1) 2009-2010 and adjusts the reductions for the years 2007-2008 and 2008-2009 instead. This amendment is detailed in Schedule 1 and Schedule 2 of the Determination, which specify the reductions for the respective years. The Act imposes specific obligations on the relevant parties, including the requirement that any reduction in appropriations must be in response to a written request from the responsible Minister. The Finance Minister must ensure that the reductions comply with the legislative authority provided under the Appropriation Acts. Additionally, the Act requires consultation with the affected agency, in this case, the PM&C, during the preparation of the Determination, as mandated by the Legislative Instruments Act 2003. This ensures that the affected parties are informed and have the opportunity to provide input into the determination process. Under this legislation, there are no explicit offences, penalties, or civil/criminal consequences for breaches of the Act. However, the process for making determinations and the requirement to adhere to the legislative authority provided under the Appropriation Acts are strictly enforced. Failure to comply with these provisions could lead to the revocation of a determination, as seen in the revocation of the previous reduction for 2009-2010. The determinations are subject to review and adjustment based on accurate appropriation requests, ensuring that the funds are allocated appropriately across the correct fiscal years.

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Finance & Banking Law
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Determination
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Repeal & Amendment
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