Explanatory Statement
Appropriation Act (No. 1) 2004-2005, subsection 9(1) – Reduction of appropriations upon request
Appropriation Act (No. 1) 2005-2006, subsection 9(1) – Reduction of appropriations upon request
Appropriation Act (No. 1) 2006-2007, subsection 9(1) – Reduction of appropriations 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 19 April 2008 and numbered 5 of 2007-2008.
The legislative authority under which the instrument is made
Section 9 of Appropriation Act (No. 1) 2004-2005, Appropriation Act (No. 1) 2005-2006 and Appropriation Act (No. 1) 2006-2007 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 the Finance Minister is responsible for, 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 subsection 9(1) of Appropriation Act (No. 1) 2004-2005, Appropriation Act (No. 1) 2005-2006 and Appropriation Act (No. 1) 2006-2007, 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 the departmental items for Medicare Australia (Medicare) in Appropriation Act (No. 1) 2004-2005 be reduced by $61,165, in Appropriation Act (No. 1) 2005-2006 be reduced by $95,000 and in Appropriation Act (No. 1) 2006-2007 be reduced by $34,000.
Background
On 1 April 2008, the Minister for Human Services wrote to the Minister for Finance and Deregulation requesting a determination to reduce Medicare’s departmental items under Appropriation Act (No. 1) 2004-2005 by $61,165, in Appropriation Act (No. 1) 2005-2006 by $95,000 and in Appropriation Act (No. 1) 2006-2007 by $34,000. These reductions are due to surplus unspent advertising funding.
Notes on the instrument
The instrument provides that the appropriation items in column 1 for the entity in column 2 be 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, Medicare was consulted in the preparation of this instrument.