Explanatory Statement
Appropriation Act (No. 3) 2003-04, Section 10 – 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 30 June 2005 and numbered 6 of 2004-2005.
The legislative authority under which the instrument is made
Section 10 of Appropriation Act (No. 3) 2003-04 enables the Finance Minister to make a determination reducing departmental appropriations from prior years, from Appropriation Act
(No. 1) 1999-2000 up to and including Appropriation Act (No.1) 2003-04, upon receipt of a written request from the Minister responsible or, in the case of an agency in the Finance portfolio, the Chief Executive.
The provision was included in Appropriation Act (No. 3) 2003-04 to enable excess departmental appropriation items, which do not automatically lapse, 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.
A determination issued by the Finance Minister pursuant to section 10 of Appropriation Act (No. 3) 2003-04 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 outputs appropriations for the Australian Electoral Commission be reduced by a total of $13,441,282, as follows:
Appropriation Act (No. 1) 1999-2000 be reduced by $5,129,583;
Appropriation Act (No. 1) 2000-2001 be reduced by $2,018,321;
Appropriation Act (No.1) 2001-2002 be reduced by $2,628,810; and
Appropriation Act (No. 1) 2002-2003 be reduced by $3,664,568.
Background
On 27 June 2005, the Electoral Commissioner, Mr Andy Becker, wrote to the Minister for Finance and Administration seeking a reduction of the Australian Electoral Commission’s departmental outputs appropriations, as listed in the Appropriation Acts above, by a total of $13,441,282. The appropriations were provided to the Commission to implement certain Regulations under the Electoral and Referendum Amendment Act (No. 1) 1999. However, as the proposed Regulations were disallowed by the Senate in May 2002, these appropriations are no longer required for this purpose by the Australian Electoral Commission.
Notes on the instrument
The instrument provides that the appropriation items in column 1 for the Australian Electoral Commission be reduced in response to a request made by the Chief Executive in column 4 by the amounts listed in column 6.