Explanatory Statement
Appropriation Act (No. 3) 2003-2004, subsection 10(2) – Reduction of appropriations from prior years upon request
The instrument to which this explanatory statement relates
This explanatory statement relates to an instrument (the instrument) entitled “Determination to Reduce Appropriation Upon Request”, dated 26 June 2007 and numbered 17 of 2006-2007.
The legislative authority under which the instrument is made
Section 10 of Appropriation Act (No. 3) 2003-2004 enables the Finance Minister to make a determination reducing a departmental item for an entity upon receipt of a written request from the Minister responsible or, in the case of an entity for which the Finance Minister is responsible, the Chief Executive.
The provisions were included in the Appropriation Acts to enable excess departmental appropriation items to be extinguished.
Excess appropriation may arise where, for example:
- An amount is reclassified and appropriated again under another kind of appropriation;
- Efficiency savings result in a programme costing less than expected; and
- A programme under Government policy is abolished prior to the appropriation being expensed.
In accordance with subsections 10(6) and 10(7) of Appropriation Act (No. 3) 2003-2004, a determination issued by the Finance Minister cannot reduce an appropriation item by more than the lesser of the amount requested by the responsible Minister or Chief Executive (as appropriate), and the balance of the appropriation item remaining in the Consolidated Revenue Fund.
Purpose of the instrument
The instrument directs that departmental items for the Department of Employment and Workplace Relations (DEWR) in Appropriation Act (No. 1) 1999-2000 be reduced by $1,087,000.
Background
On 30 May 2007, the Minister for Employment and Workplace Relations (the Minister) wrote to the Minister for Finance and Administration seeking a reduction of DEWR’s departmental items in Appropriation Act (No. 1) 1999-2000 by $1,087,000. The reasons for this reduction are as follows.
- The net result of retained funding of $1,337,000 relating to a Machinery of Government change in October 1998 offset by the recovery of $150,000 of Employer Nomination Scheme revenue incorrectly banked to the Official Public Account instead of as DEWR’s section 31 receipts; and
- The net result of $300,000 from the National Occupational Health and Safety Commission for occupational health and safety comparative performance monitoring offset by $200,000 transferred from DEWR to the Affirmative Action Agency (AAA) to implement changes to the operations of the AAA resulting from legislation changes.
Notes on the instrument
The instrument provides that the appropriation item in column 1 for the entity in column 2 is reduced in response to a request made by the Minister in column 4 by the amounts listed in column 6.
In accordance with the Legislative Instruments Act 2003, DEWR has been consulted in the preparation of this instrument.