Explanatory Statement
Appropriation Act (No. 1) 2005-06, Section 9 – 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 27 April 2006 and numbered 6 of 2005-2006.
The legislative authority under which the instrument is made
Section 9 of Appropriation Act (No. 1) 2005-06 enables the Finance Minister to make a determination reducing departmental appropriations in that Act, 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. 1) 2005-06 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 9 of Appropriation Act (No.1) 2005-06 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 appropriation for the Australian Film, Television and Radio School in Appropriation Act (No. 1) 2005-06 be reduced by $152,000.
Background
On 22 December 2005, the Minister for Communications, Information Technology and the Arts, wrote to the Minister for Finance and Administration seeking a reduction of the Australian Film, Television and Radio School’s departmental outputs appropriation in Appropriation Act (No. 1) 2005-06 by $152,000. This amount relates to funds appropriated in excess of requirements for the relocation of Australian Film, Television and Radio School.
Notes on the instrument
The instrument provides that the appropriation items in column 1 for the Australian Film, Television and Radio School be reduced in response to a request made by the Minister in column 4 by the amounts listed in column 6.