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

Administered by Department of Finance

Legislation au F2012L02320 Not in force Legislative Instrument

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EXPLANATORY STATEMENT

Issued by the authority of the Minister for Finance and Deregulation

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.

 

Overview

The Determination to Reduce Appropriations (No. 3 of 2012-2013) was enacted on 22 November 2012 under the authority of the Minister for Finance and Deregulation. This legislative instrument was introduced to address the issue of surplus appropriations in various government departments and agencies, ensuring fiscal responsibility and efficient use of public funds. The instrument was created in response to requests from relevant ministers to reduce certain appropriations that were found to be in excess of departmental requirements or not fully utilised. The policy objective behind this determination is to re-appropriate surplus funds to other areas of need within the government, thereby promoting a more balanced and effective allocation of resources. This instrument was issued in accordance with the Legislative Instruments Act 2003, and the affected agencies were consulted during its preparation. It is important to note that this determination does not engage any of the applicable rights or freedoms outlined in the Human Rights (Parliamentary Scrutiny) Act 2011, and is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the same Act. The instrument includes detailed schedules that outline the specific reductions in appropriation for various departments and agencies, ensuring transparency and accountability in the reallocation of funds.

Scope and Application

The Determination to Reduce Appropriations (No. 3 of 2012-2013) pertains to the adjustment of appropriations across various federal departments and agencies to address surplus or unutilised funding within specified fiscal years. This legislation applies to several departments, including the Department of Innovation, Industry, Science and Research (DIISR), the Department of Human Services (DHS), the Department of Immigration and Citizenship (DIAC), and the Australian Taxation Office. The adjustments primarily target Outcome-based administered items and departmental assets and liabilities to ensure that the appropriations align with the actual requirements or expenditures of these entities. The legislative authority under which this determination is made is detailed in clause 3 of the Determination, and the purpose and effect are outlined in clause 4. The instrument covers fiscal years from 2008-2009 to 2012-2013, reducing the appropriations based on factors such as surplus funding, unused capital budgets, and demand-driven programs where funding exceeded demand. The adjustments are applied as if the specified amounts were the required amounts for the respective fiscal years, as mentioned in the agencies' annual reports.

Key Provisions

The main operative sections of the Determination to Reduce Appropriations (No. 3 of 2012-2013) involve reductions in specific appropriations for various departments and agencies for fiscal years 2008-2009 through 2012-2013. Section 1 of Schedule 1, for example, reduces the Outcome 1 administered item for the Department of Innovation, Industry, Science and Research (DIISR) by $10,482,370.18. Similarly, Schedule 2, Section 1, reduces the Outcome 1 administered item for the Department of Human Services (DHS) by $452,211.14 for fiscal year 2009-2010. These reductions are based on the premise that the appropriations are surplus to the departments' requirements or due to specific financial circumstances such as the use of 2010-11 appropriations instead of the 2009-10 appropriations. The obligations and requirements imposed by the Act mandate that the specified departments and agencies adjust their appropriation figures to reflect the reduced amounts as determined. This includes the Department of Innovation, Industry, Science and Research, the Department of Human Services, the Department of Immigration and Citizenship, and the Australian Taxation Office, among others. The adjustments apply as if the reduced amounts specified in the determination were the required amounts in the agencies' annual reports. This ensures that the financial records accurately reflect the authorised appropriations and liabilities. In terms of consequences for non-compliance, the Act does not explicitly detail offences, penalties, or specific civil or criminal consequences for breaches of the appropriation reductions. However, given the nature of the Act, failure to adhere to the prescribed reductions could potentially lead to financial mismanagement or misreporting, which may invite scrutiny from relevant financial oversight bodies or lead to broader administrative consequences. The Act primarily focuses on the procedural adjustment of appropriations to reflect surplus or unutilised funds rather than penalising non-compliance.

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