The instrument to which this explanatory statement relates

Determination to Reduce Appropriations (No. 1 of 2012‑2013)

Date instrument was made

14 August 2012

The legislative authority under which the instrument is made

Subsection 13(2) of Appropriation Act (No. 2) 2010-2011 enables the Minister for Finance and Deregulation to make a written Determination reducing the other departmental item (Equity Injections) for an agency by the amount specified in the Determination, upon receipt of a written request from the Minister responsible for that agency.

The reduction provisions are included in the annual Appropriation Acts to enable excess other departmental items to be extinguished.

Subsection 12(2) of Appropriation Act (No. 2) 2008-2009; subsection 11(2) of Appropriation Act (No. 1) 2010-2011 and subsection 11(2) of Appropriation Act (No. 3) 2010-2011; enable the Minister for Finance and Deregulation (Finance Minister) to make a determination reducing an administered item, or a State, ACT, NT and local government item, for an agency to the required amount specified in the determination. The provisions were included in the Annual Appropriation Acts to allow the Finance Minister to determine that a required amount published in the annual report of an agency is taken to be the required amount specified in the determination. The powers in subsection 11(2) and subsection 12(2) are to ensure that the amount published in an agency annual report for the administered item or the State, ACT, NT and local government item can be changed, if, for example, the amount is erroneous or requires updating after agency annual reports are published.

Determinations made under subsection 12(2) of Appropriation Act (No. 2) 2008-2009; subsection 11(2) of Appropriation Act (No. 1) 2010-2011; subsection 13(2) of Appropriation Act (No. 2) 2010-2011; and subsection 11(2) of Appropriation Act (No. 3) 2010-2011 are legislative instruments and are disallowable.

Purpose and effect of the instrument

Schedules 1, 2, and 4 in this Determination reduce administered items and State, ACT, NT and local government items for the Department of Health and Ageing (Health) by the amount indicated in column 5 of those schedules. The required amount in column 4 of those schedules for the administered items or the State, ACT, NT and local government items can apply as if it is the amount specified in Health’s annual report.

Schedule 3 in this Determination reduces the other departmental item (Equity Injections) for Health by the amount indicated in column 4 of the schedule.

Background

Schedule 1: Reduction in Appropriation Act (No. 2) 2008‑2009

Item 1: This item determines that the Outcome 1 State, ACT, NT and local government item for Health is reduced by $1,268,785.70 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 the difference between estimated accrued amounts and the amount actually required for payments.

Item 2: This item determines that the Outcome 4 State, ACT, NT and local government item for Health is reduced by $134,810.66 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 the difference between estimated accrued amounts and the amount actually required for payments.

Schedule 2: Reduction in Appropriation Act (No. 1) 2010‑2011

Item 1: This item determines that the Outcome 14 administered item for Health is reduced by $73,160.53 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 the difference between estimated accrued amounts and the amount actually required for payments.

Schedule 3: Reduction in Appropriation Act (No. 2) 2010‑2011

Item 1: The Minister for Health wrote to the Minister for Finance and Deregulation (Finance Minister) on 14 July 2012 requesting a determination to reduce the Health’s other departmental item (Equity Injections) by $29,324,000.00.  The amount relates to:

• the 2012-2013 Budget savings decision Cessation of Governance and Information Technology Infrastructure Funding for the One Stop Shops ($17,000,000.00); and
• the National Health Reform Enterprise Data Warehouse which was re-appropriated in Appropriation Act (No. 3) 2011-2012 in operational funding ($12,324,000.00).

Schedule 4: Reduction in Appropriation Act (No. 3) 2010‑2011

Item 1: This item determines that the Outcome 4 administered item for Health is reduced by $36,026.69 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 the difference between estimated accrued amounts and the amount actually required for payments.

Notes on the Instrument

Schedules 1, 2, and 4 contain tables for administered items and State, ACT, NT and local government 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 (column 3 less column 4).

For the administered items under subsection 11(2) of Appropriation Act (No. 1) 2010-2011, and subsection 11(2) of Appropriation Act (No. 3) 2010-2011, and the State, ACT, NT and local government items under subsection 12(2) of Appropriation Act (No. 2) 2008-2009,  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.

Schedule 3 contains a table listing the relevant agency and appropriation item contained in the relevant annual Appropriation Act in column 1, the legislative authority in column 2, which through the request by the responsible Minister in column 3, is reduced by the amount in column 4.

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, Health was consulted in the preparation of this Instrument.

Human Rights Impact 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.