Determination to Reduce Appropriations (No. 1 of 2011-2012)

Administered by Department of Finance

Legislation au F2012L01534 Not in force Legislative Instrument

Legislation content

The instrument to which this explanatory statement relates

Determination to Reduce Appropriations
(No. 1 of 20112012)

Date instrument was made

26 June 2012

The legislative authority under which the instrument is made

The legislative authority under which the Instrument is made is detailed in clause 3 of the Determination.

Purpose and effect of the instrument

The purpose of the Instrument is detailed in clause 4 of the Determination.

The effect of the Instrument is detailed in clause 5 of the Determination.

Background to items in the Schedules

Schedule 1: Reduction in Appropriation Act (No. 2) 2004-2005

Item 1: The Assistant Treasurer (on behalf of the Treasurer) wrote to the Minister for Finance and Deregulation (Finance Minister) on 13 June 2012 requesting a determination to reduce the Department of the Treasury’s administered assets and liabilities item by $668,476.85.  The amount relates to the unspent balance for the encashment of promissory notes in International Financial Institutions.

Schedule 2: Reduction in Appropriation Act (No. 1) 2005-2006

Item 1: This item determines that the Outcome 3 administered item for the Department of Communications, Information Technology and the Arts is reduced by $1,330,811.87 to the required amount and applies as if the amount specified in the agency annual report was the required amount specified in the determination. The amount relates to an excess as a result of variations between estimated amounts used in calculating the amount of appropriations to be retained and subsequent actual invoiced amounts.

Schedule 3: Reduction in Appropriation Act (No. 2) 2006-2007

Item 1: The Assistant Treasurer (on behalf of the Treasurer) wrote to the Minister for Finance and Deregulation (Finance Minister) on 13 June 2012 requesting a determination to reduce the Department of the Treasury’s administered assets and liabilities item by $61,928.44.  The amount relates to the HIH program.

Schedule 4: Reduction in Appropriation Act (No. 4) 2006-2007

Item 1: The Assistant Treasurer (on behalf of the Treasurer) wrote to the Minister for Finance and Deregulation (Finance Minister) on 13 June 2012 requesting a determination to reduce the Department of the Treasury’s administered assets and liabilities item by $14,068,000.00.  The amount relates to the HIH program.

 

Schedule 5: Reduction in Appropriation Act (No. 1) 2007-2008

Item 1: This item determines that the Outcome 1 administered item for the Department of Communications, Information Technology and the Arts is reduced by $15,068.01 to the required amount and applies as if the amount specified in the agency annual report was the required amount specified in the determination. The amount relates to an excess as a result of variations between estimated amounts used in calculating the amount of appropriations to be retained and subsequent actual invoiced amounts.

Item 2: The Minister for Defence wrote to the Minister for Finance and Deregulation (Finance Minister) on 18 June 2012 requesting a determination to reduce the Defence Materiel Organisation’s departmental item by $38,478,000.00.  This amount relates to a lower than anticipated take up rate by industry of the Skilling Australian Defence Industry program, the Industry Skills Program Enhancement and other defence industry initiatives.

Schedule 6: Reduction in Appropriation Act (No. 2) 2007-2008

Item 1: The Attorney-General wrote to the Minister for Finance and Deregulation (Finance Minister) on 14 June 2012 requesting a determination to reduce the Australian Federal Polices other departmental item (equity injections) by $6,563,000.00.  The amount relates to savings as a result of the 2011-2012 MYEFO decision Alice Springs Airport – withdrawal of the Australian Federal Police.

Item 2: The Assistant Treasurer (on behalf of the Treasurer) wrote to the Minister for Finance and Deregulation (Finance Minister) on 13 June 2012 requesting a determination to reduce the Department of the Treasury’s administered assets and liabilities item by $27,674,395.52 and the Australian Taxation Office’s other departmental item (equity injections) by $2,381,000.00.  The Department of the Treasury amount relates to the HIH program. The Australian Taxation Office amount relates to a return of unspent capital from the 2005-2006 Additional Estimates measure - Operation Wickenby - Investigations and Prosecutions ($1,119,000.00); and the 2007-2008 Budget measure - Debt collection enhancement - reducing taxation debt and outstanding superannuation guarantee charge payments ($1,262,000.00).

Schedule 7: Reduction in Appropriation Act (No. 1) 2008-2009

Item 1: This item determines that the Outcome 1 administered item for the Department of Broadband, Communications and the Digital Economy is reduced by $2,035.40 to the required amount and applies as if the amount specified in the agency annual report was the required amount specified in the determination. The amount relates to an excess as a result of variations between estimated amounts used in calculating the amount of appropriations to be retained and subsequent actual invoiced amounts. In addition, the Minister for Broadband, Communications and the Digital Economy wrote to the Minister for Finance and Deregulation (Finance Minister) on 1 June 2012 requesting a determination to reduce the Department of Broadband, Communications and the Digital Economy’s CAC Act body payment item for the Special Broadcasting Services Corporation by $1,422,307.00.  The CAC Act body payment item amount for the Special Broadcasting Services Corporation relates to the excess Digital Television Conversion funding appropriated in 2007-2008, which was returned to the Official Public Account in 2008-2009.

Item 2: The Minister for Defence wrote to the Minister for Finance and Deregulation (Finance Minister) on 18 June 2012 requesting a determination to reduce the Defence Materiel Organisation’s departmental item by $13,571,000.00.  This amount relates to a lower than anticipated take up rate by industry of the Skilling Australian Defence Industry program, the Industry Skills Program Enhancement and other defence industry initiatives.

Schedule 8: Reduction in Appropriation Act (No. 2) 2008-2009

Item 1: The Assistant Treasurer (on behalf of the Treasurer) wrote to the Minister for Finance and Deregulation (Finance Minister) on 13 June 2012 requesting a determination to reduce the Department of the Treasury’s administered assets and liabilities item by $14,103,040.48, and the Australian Taxation Office’s other departmental item (equity injections) by $9,423,000.00 and other departmental item (previous years’ outputs) by $20,000.00.  The Department of the Treasury amount relates to the HIH program. The Australian Taxation Office other departmental item (equity injection) amount is a return of unspent capital from several prior year Budget measures. The Australian Taxation Office other departmental item (previous years’ outputs) amount is a return of unspent capital (Previous Years' Outputs) from the 2008-2009 Budget measure - First Home Saver Accounts.

Schedule 9: Reduction in Appropriation Act (No. 4) 2008-2009

Item 1: The Assistant Treasurer (on behalf of the Treasurer) wrote to the Minister for Finance and Deregulation (Finance Minister) on 13 June 2012 requesting a determination to reduce the Department of the Treasury’s administered assets and liabilities item by $3,996,000.00.  The amount relates to the HIH program.

Schedule 10: Reduction in Appropriation Act (No. 1) 2009-2010

Item 1: This item determines that the Outcome 1 administered item for the Department of Broadband, Communications and the Digital Economy is reduced by $227,885.31 to the required amount and applies as if the amount specified in the agency annual report was the required amount specified in the determination. The amount relates to an excess as a result of variations between estimated amounts used in calculating the amount of appropriations to be retained and subsequent actual invoiced amounts.

Item 2: The Minister for Defence wrote to the Minister for Finance and Deregulation (Finance Minister) on 18 June 2012 requesting a determination to reduce the Defence Materiel Organisation’s departmental item by $8,255,000.00.  This amount relates to a lower than anticipated take up rate by industry of the Skilling Australian Defence Industry program, the Industry Skills Program Enhancement and other defence industry initiatives.

Item 3: The Minister for Human Services wrote to the Minister for Finance and Deregulation (Finance Minister) on 8 June 2012 requesting a determination to reduce the Department of Human Services’ departmental item by $730,000.00.  This amount relates to excess appropriations provided to the department for the Medicare Benefits Schedule and Pharmaceutical Benefits Scheme data matching measure which was terminated in the 2012-2013 Budget.

Schedule 11: Reduction in Appropriation Act (No. 2) 2009-2010

Item 1: The Minister for Human Services wrote to the Minister for Finance and Deregulation (Finance Minister) on 8 June 2012 requesting a determination to reduce the Department of Human Services’ other departmental item (equity injections) by $554,000.00.  This amount relates to excess appropriations provided to the department for the Medicare Benefits Schedule and Pharmaceutical Benefits Scheme data matching measure which was terminated in the 2012-2013 Budget.

Item 2: The Assistant Treasurer (on behalf of the Treasurer) wrote to the Minister for Finance and Deregulation (Finance Minister) on 13 June 2012 requesting a determination to reduce the Australian Taxation Office’s other departmental item (equity injections) by $1,300,000.00 and other departmental item (previous years’ outputs) by $1,260,000.00.  The Australian Taxation Office other departmental item (equity injection) amount is a return of unspent capital from the 2007-2008 Budget measure - Debt collection enhancement - reducing taxation debt and outstanding superannuation guarantee charge payments. The Australian Taxation Office other departmental item (previous years’ outputs) amount is a return of unspent capital from the 2009-2010 Budget measure - Expansion of income contingent loans to state-subsidised students in vocational education and training.

Schedule 12: Reduction in Appropriation Act (No. 3) 2009-2010

Item 1: The Minister for Broadband, Communications and the Digital Economy wrote to the Minister for Finance and Deregulation (Finance Minister) on 1 June 2012 requesting a determination to reduce the Department of Broadband, Communications and the Digital Economy’s CAC Act body payment item for the Special Broadcasting Services Corporation by $1,247,000.00.  The CAC Act body payment item amount for the Special Broadcasting Services Corporation relates to Digital Television Transmission and Distribution funding that was not drawn upon as it was not required.

 

Schedule 13: Reduction in Appropriation Act (No. 1) 2010-2011

Item 1: This item determines that the Outcome 1 administered item for the Attorney-General's Department is reduced by $58,158.18 to the required amount and applies as if the amount specified in the agency annual report was the required amount specified in the determination. This amount is a return of unspent funding relating to accruals which were based on advice received from external bodies and was not required (as referred to in Estimates Memorandum 2011/25). In addition, the Attorney-General wrote to the Minister for Finance and Deregulation (Finance Minister) on 14 June 2012 requesting a determination to reduce the Attorney-General's Department’s departmental item by $728,878.36.  The departmental amount represents excess appropriations from funding provided in relation to classification costs and revenues.

Item 2: This item determines that the Outcome 1 administered item for the Department of Broadband, Communications and the Digital Economy is reduced by $154,097.95 to the required amount and applies as if the amount specified in the agency annual report was the required amount specified in the determination. The amount relates to an excess as a result of variations between estimated amounts used in calculating the amount of appropriations to be retained and subsequent actual invoiced amounts.

Item 3: The Minister for Defence wrote to the Minister for Finance and Deregulation (Finance Minister) on 18 June 2012 requesting a determination to reduce the Defence Materiel Organisation’s departmental item by $12,190,000.00.  This amount relates to a lower than anticipated take up rate by industry of the Skilling Australian Defence Industry program, the Industry Skills Program Enhancement and other defence industry initiatives.

Item 4: The Minister for Human Services wrote to the Minister for Finance and Deregulation (Finance Minister) on 8 June 2012 requesting a determination to reduce the Department of Human Services’ departmental item by $532,000.00.  This amount relates to excess appropriations provided to the department for the Medicare Benefits Schedule and Pharmaceutical Benefits Scheme data matching measure which was terminated in the 2012-2013 Budget.

Item 5: This item determines that the Outcome 2 administered item for the Department of Infrastructure and Transport is reduced by $295,348.79 to the required amount and applies as if the amount specified in the agency annual report was the required amount specified in the determination. The amount relates to Outcome 2 annual appropriations retained under section 11 of Appropriation Act 1 (2010-2011) for the payment of accrued expenses in 2011-2012. All expenses accrued in 2010-2011 have been paid in full, and as such the remaining appropriation is no longer required.

Item 6: The Assistant Treasurer (on behalf of the Treasurer) wrote to the Minister for Finance and Deregulation (Finance Minister) on 13 June 2012 requesting a determination to reduce the Department of the Treasury’s departmental item by $5,729,267.00.  This amount is a return of the Treasury's unspent appropriation for the Financial Reporting Panel ($1,740,267.00) and Standard Business Reporting ($3,989,000.00).

Schedule 14: Reduction in Appropriation Act (No. 2) 2010-2011

Item 4: The Assistant Treasurer (on behalf of the Treasurer) wrote to the Minister for Finance and Deregulation (Finance Minister) on 13 June 2012 requesting a determination to reduce the Australian Securities and Investments Commission’s other departmental item (equity injections) by $4,250,000.00.  This amount is a return of ASIC's unspent capital from the 2009-2010 MYEFO measure - Supervision of Australia's financial markets - reform.

Schedule 15: Reduction in Appropriation Act (No. 1) 2011-2012

Item 1: The Attorney-General wrote to the Minister for Finance and Deregulation (Finance Minister) on 14 June 2012 requesting a determination to reduce the Australian Federal Police’s departmental item by $6,333,000.00.  The amount relates to savings as a result of the 2011-2012 MYEFO decision Alice Springs Airport – withdrawal of the Australian Federal Police ($1,011,000.00) as well as lease cost savings relating to the 2011-2012 Budget measure Aviation Security – revision of lease costs ($5,322,000.00).

Item 2: The Secretary for Department of Finance and Deregulation wrote to the Minister for Finance and Deregulation (Finance Minister) on 8 June 2012 requesting a determination to reduce the Department of Finance and Deregulation’s departmental item by $735,000.00.  The amount reflects the unused portion of funding the Department of Finance and Deregulation received in 2010-2011 for a series of program reviews. 

Item 3: The Minister for Infrastructure and Transport wrote to the Minister for Finance and Deregulation (Finance Minister) on 18 June 2012 requesting a determination to reduce the Department of Infrastructure and Transport’s departmental item by $4,243,000.00.  The amount represents the net impact of adjustments to 2011-2012 departmental appropriations since the 2011-2012 Budget Update.

Item 4: The Assistant Treasurer (on behalf of the Treasurer) wrote to the Minister for Finance and Deregulation (Finance Minister) on 13 June 2012 requesting a determination to reduce the Australian Securities and Investments Commission’s departmental item by $639,000.00.  This amount is a $1,041,000.00 reallocation of ASIC funding to the Treasury - from the 2010-2011 MYEFO measure - Helping Our Kids Understand Finances, less ASIC additional funding of $402,000.00 from the 2011-2012 MYEFO measure - Clean Energy Future - Compliance.

 

Schedule 16: Reduction in Appropriation Act (No. 3) 2011-2012

Item 1: The Minister for Sustainability, Environment, Water, Population and Communities wrote to the Minister for Finance and Deregulation (Finance Minister) on 13 June 2012 requesting a determination to reduce the Department of Sustainability, Environment, Water, Population and Communities’ departmental item by $15,000,000.00.  The amount represents an underspend in 2011-2012 in relation to the implementation of the National Partnership Agreement (NPA) on Coal Seam Gas and Large Coal Mining Development.

Notes on the Instrument

The Schedules contain tables for administered appropriation items listing the relevant agency, appropriation item and outcome number contained in the relevant annual Appropriation Act in column 1, the legislative authority in column 2, the amount appropriated by determination or annual report for the appropriation item in column 3, the new amount required by the agency for that appropriation item in column 4, and the amount reduced in column 5.

For the administered appropriation item under subsection 8(1)(b) of Appropriation Act (No. 1) 2004-2005, subsection 8(1)(b) of Appropriation Act (No. 1) 2005-2006, and subsection 8(1)(b) of Appropriation Act (No. 1) 2007-2008, the amount required by the agency in column 5 is the amount that is taken to be the specified amount required for the appropriation item for the purposes of the total accrued administered expenses.

For the administered appropriation item under subsection 11(2)(b) of Appropriation Act (No. 1) 2008-2009, subsection 11(2)(b) of Appropriation Act (No. 1) 2009-2010, and subsection 11(2)(b) of Appropriation Act (No. 1) 2010-2011, the amount required by the agency in column 5 is the amount that is taken to be the specified amount required for the appropriation item for the purposes of the agency’s annual report.

The Schedules contain tables for all other appropriation items (departmental, other departmental (equity injections and previous years’ outputs), administered assets and liabilities, and CAC Act Body payment items) listing the affected agencies in column 1, the Appropriation Act and appropriation item in column 2, which through the request by the responsible Minister in column 3, is reduced by the amount in column 4.

Note 1: The amount of an appropriation item for an agency may also include adjustments to that amount made under the adjustment provisions contained in the Annual Appropriation Acts and under section 32 of the Financial Management and Accountability Act 1997. Adjustments made under these provisions may increase the amount of an item when compared with the Schedules of the Annual Appropriation Acts.

In accordance with the Legislative Instruments Act 2003, the agencies concerned were consulted in the prepration of this instrument.

Human Rights Statement

This determination does not engage any of the applicable rights or freedoms outlined in the Human Rights (Parliamentary Scrutiny)
Act 2011.

This determination is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011 as it does not raise any human rights issues.

 

 

Overview

The Reduction in Appropriation Determination (No. 1 of 2011-2012), enacted in 2012, addresses the need to adjust the appropriations of various Australian government departments and agencies following the identification of unspent or excess funds. The determination was made under the authority of the Reduction in Appropriation Acts and aims to ensure the efficient use of public resources by reallocating surplus funds. This instrument was created in response to requests from various ministers to the Minister for Finance and Deregulation, who then sought the necessary reductions in appropriation to reflect the actual financial requirements of the departments and agencies involved. The overarching policy objective is to maintain fiscal discipline and optimise the utilisation of government appropriations across different sectors.

Scope and Application

The Determination to Reduce Appropriations (No. 1 of 2011-2012) applies to various Australian government departments and agencies, specifically those with unspent or excess appropriations for the financial years from 2004-2005 to 2011-2012. The scope of the Act includes departments such as the Department of the Treasury, the Australian Taxation Office, the Australian Federal Police, the Department of Communications, Information Technology and the Arts, the Department of Defence, the Department of Human Services, the Department of Broadband, Communications and the Digital Economy, the Attorney-General's Department, the Department of Infrastructure and Transport, and the Department of Sustainability, Environment, Water, Population and Communities. The Act provides for the reduction of certain appropriation items within these agencies due to unspent balances, excess appropriations, or lower than anticipated usage of funds. The reductions are made in accordance with the specific requests from the relevant Ministers and the Assistant Treasurer, as outlined in the schedules of the Determination. The geographic and jurisdictional reach of the Act is limited to the Commonwealth of Australia, and it does not specify any exclusions, exemptions, or thresholds. The Act extends its application through subordinate instruments by detailing the specific reductions for each financial year and department, ensuring compliance with the annual Appropriation Acts.

Key Provisions

The key provisions of the Determination to Reduce Appropriations (No. 1 of 2011-2012) focus on reducing the appropriations of various government departments and agencies for the financial years 2004-2005 to 2011-2012. These reductions are detailed in the schedules of the instrument, which list the agencies, the appropriation items, the original amounts, the new required amounts, and the amounts reduced (Schedules 1 to 16). For example, Schedule 1 outlines a reduction in the Department of the Treasury's administered assets and liabilities item by $668,476.85 for the encashment of promissory notes in International Financial Institutions for the financial year 2004-2005. The obligations and requirements imposed by this Act primarily involve the departments and agencies whose appropriations are reduced. These entities must ensure that they comply with the determinations specified in the schedules, which involve recalculating their budgetary allocations based on the new amounts required. Departments and agencies must also ensure that they report these adjustments in their annual reports and any other relevant financial documentation. Furthermore, the Act mandates that the adjustments be made as if the amounts specified in the schedules were the required amounts as determined by the Minister for Finance and Deregulation. The Act does not explicitly state any criminal or civil penalties for non-compliance with the appropriation reductions. However, non-compliance with the provisions of the Appropriation Acts, which this determination implements, could potentially lead to legal consequences under the Financial Management and Accountability Act 1997. This could include civil penalties for misuse of public funds or criminal penalties for fraud or other financial misconduct. Additionally, failure to adhere to the adjustments could result in financial discrepancies and potential audits by the Australian National Audit Office or other relevant authorities.

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