The instrument to which this explanatory statement relates

Determination to Reduce Appropriations (No. 3 of 2012‑2013)

Date instrument was made

22 November 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 and effect of the Instrument is detailed in clause 4 of the Determination.

Background

Schedule 1: Determination of amount in Appropriation Act (No. 1) 2008‑2009

Item 1: This item determines that the Outcome 1 administered item for the Department of Innovation, Industry, Science and Research (DIISR) is reduced by $10,482,370.18 to the required amount and applies as if the amount specified in the agency’s annual report was the required amount specified in the determination. The amount relates to the appropriation being surplus to the Department’s requirements.

Item 2: This item determines that the Outcome 2 administered item for DIISR is reduced by $482,146.32 to the required amount and applies as if the amount specified in the agency’s annual report was the required amount specified in the determination. The amount relates to the appropriation being surplus to the Department’s requirements.

Schedule 2: Determination of amount in Appropriation Act (No. 1) 2009‑2010

Item 1: This item determines that the Outcome 1 administered item for the Department of Human Services (DHS) is reduced by $452,211.14 to the required amount and applies as if the amount specified in the agency’s annual report was the required amount specified in the determination.

The appropriation is excess as:

-          the Department used 2010-11 appropriation instead of the 2009-10 appropriation to make payments that were accrued in the 2009-10 financial year for the 2009-10 Budget measure: "Closing the Gap - Northern Territory - Income Management - additional funding"; and

-          the Department accrued for expenses in the 2009-10 financial year that were subsequently not required to be paid for the 2007-08 Portfolio Additional Estimates measure "Medicare Rebates - Electronic Claiming Incentive Package".

Item 2: This item determines that the Outcome 3 administered item for the Department of Immigration and Citizenship (DIAC) is reduced by $434,094.70 to the required amount and applies as if the amount specified in the agency’s annual report was the required amount specified in the determination. The accrued expenses for this appropriation were not fully utilised.

Item 3: This item determines that the Outcome 5 administered item for DIAC is reduced by $867,608.38 to the required amount and applies as if the amount specified in the agency’s annual report was the required amount specified in the determination. The amount relates to a demand driven program where funding was surplus to demand.

Item 4: This item determines that the Outcome 6 administered item for DIAC is reduced by $107,480.47 to the required amount and applies as if the amount specified in the agency’s annual report was the required amount specified in the determination. The accrued expenses for this appropriation were not fully utilised.

Item 5: This item determines that the Outcome 1 administered item for DIISR is reduced by $3,368,402.37 to the required amount and applies as if the amount specified in the agency’s annual report was the required amount specified in the determination. The amount relates to the appropriation being surplus to the Department’s requirements.

Schedule 3: Determination of amount in Appropriation Act (No. 3) 2009‑2010

Item 1: This item determines that the Outcome 2 administered item for DIAC is reduced by $4,327,683.56 to the required amount and applies as if the amount specified in the agency’s annual report was the required amount specified in the determination. The accrued expenses for this appropriation were not fully utilised.

Item 2: This item determines that the Outcome 5 administered item for DIAC is reduced by $45,000.00 to the required amount and applies as if the amount specified in the agency’s annual report was the required amount specified in the determination. The amount relates to a demand driven program where funding was surplus to demand.

Schedule 4: Determination of amount in Appropriation Act (No. 1) 2010‑2011

Item 1: This item determines that the Outcome 1 administered item for the Australian Taxation Office is reduced by $271.68 to the required amount and applies as if the amount specified in the agency’s annual report was the required amount specified in the determination. The amount relates to a reduction in excess administered appropriation, as actual advertising payments were lower than expected.

Item 2: This item determines that the Outcome 4 administered item for DIAC is reduced by $7,701,962.51 to the required amount and applies as if the amount specified in the agency’s annual report was the required amount specified in the determination.

The item comprises of:

-          an administered capital budget amount of $2,547,696.91 as the accrued expenses for this appropriation were not fully utilised; and

-          an administered amount of $5,154,265.60 which relates to a demand driven program where funding was surplus to demand.

Item 3: This item determines that the Outcome 5 administered item for DIAC is reduced by $14,394,647.66 to the required amount and applies as if the amount specified in the agency’s annual report was the required amount specified in the determination. The amount relates to a demand driven program where funding was surplus to demand.

Item 4: This item determines that the Outcome 1 administered item for DIISR is reduced by $9,536,264.55 to the required amount and applies as if the amount specified in the agency’s annual report was the required amount specified in the determination. The amount relates to the appropriation being surplus to the Department’s requirements.

Item 5: This item determines that the Outcome 2 administered item for DIISR is reduced by $5,178.59 to the required amount and applies as if the amount specified in the agency’s annual report was the required amount specified in the determination. The amount relates to the appropriation being surplus to the Department’s requirements

Schedule 5: Reduction in Appropriation Act (No. 2) 2010‑2011

Item 1: The Minister for Human Services wrote to the Minister for Finance and Deregulation (Finance Minister) on 23 October 2012 requesting a determination to reduce the  administered assets and liabilities item for DHS by $36.00.  The appropriation is excess as it remained unspent following completion of procurement associated with the 2009-2010 Portfolio Additional Estimates measure "A New Scheme of Income Management".

Schedule 6: Reduction in Appropriation Act (No. 1) 2011‑2012

Item 1: The Minister for Defence wrote to the Finance Minister on 15 October 2012 requesting a determination to reduce the Department of Defence’s departmental item by $117,002,000.00.  This amount comprises of an increase of $63,775,000 for foreign exchange and a decrease for Defence Operations of $180,777,000.00.

Schedule 7: Reduction in Appropriation Act (No. 1) 2012‑2013

Item 1: The Minister for Sustainability, Environment, Water, Population and Communities wrote to the Finance Minister on 29 October 2012 requesting a determination to reduce the Department of Sustainability, Environment, Water, Population and Communities departmental item by $1,286,000.00. This amount will be re-appropriated as an administered item, and is therefore excess.

Notes on the Instrument

Schedules 1 to 4 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 items under subsection 11(2) of :

-          Appropriation Act (No. 1) 2008-2009;

-          Appropriation Act (No. 1) 2009-2010;

-          Appropriation Act (No. 3) 2009-2010; and

-          Appropriation Act (No. 1) 2010-2011,

 the amount required by the agency in column 4 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.

Schedules 5 to 7 contain tables for departmental and administered assets and liabilities appropriation items listing the affected agency 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.

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 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.