Explanatory Statement
The instrument to which this explanatory statement relates
This explanatory statement relates to an instrument (the instrument) entitled “Determination to Reduce Appropriations Upon Request (No. 1 of 2008-2009) dated 23 July 2008.
The legislative authority under which the instrument is made
Subsection 9(1) of Appropriation Act (No. 1) 2007-2008 enables the Minister for Finance and Deregulation to make a Determination reducing a departmental item for an entity by the amount specified in the Determination, upon receipt of a written request from the Minister responsible for that entity.
The provisions were included in the Appropriation Acts to enable excess departmental appropriation items 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 program under Government policy is abolished prior to the appropriation being expensed.
In accordance with subsection 9(5) of Appropriation Act (No. 1) 2007-2008, a determination issued by the Finance Minister under subsection 9(1) cannot reduce an appropriation item by greater than the lesser of the amount requested by the responsible Minister, and the balance of the appropriation item remaining in the Consolidated Revenue Fund.
Purpose of the instrument
The instrument determines that the appropriation item for the entity listed in the Schedule is reduced by the amount indicated in Column 5 of the provision.
Background
The Minister identified in Column 4 of the provision wrote to the Minister for Finance and Deregulation requesting a determination to reduce the departmental item appropriation for the entity listed in Column 1.
Notes on the instrument
The Schedules to the instrument list the entities to which a determination applies.
Each entity’s reduction determination table is contained within an individual provision. Each provision provides that the entity in column 1, has the appropriation item in column 2, under the legislative authority in column 3, through the request by the responsible Minister in Column 4, reduced, by the amount in column 5.
The instrument reflects entity and portfolio names contained in the appropriation Acts under which reductions are made, noting that these may have subsequently been changed by, for example, machinery of government changes
In accordance with the Legislative Instruments Act 2003, ACMA was consulted in the preparation of this instrument.
Disallowance
Subsection 9(9) of the Appropriation Acts that this determination is made under provides that a determination made under subsection 9(1) is a legislative instrument and despite subsection 44(2) of the Legislative Instruments Act 2003, (which provides that Instruments made under Annual Appropriation Acts are not subject to disallowance under section 42 of the Legislative Instruments Act 2003) section 42 of that Act applies to this Determination.
Overview
The instrument, titled "Determination to Reduce Appropriations Upon Request (No. 1 of 2008-2009) dated 23 July 2008, was enacted under the legislative authority of subsection 9(1) of the Appropriation Act (No. 1) 2007-2008. This instrument allows the Minister for Finance and Deregulation to reduce a departmental appropriation item for an entity by the specified amount upon a written request from the Minister responsible for that entity. This legislation addresses the issue of excess appropriations that may arise from reclassifications, efficiency savings, or the abolition of government programs before the appropriation is expensed. The objective of the instrument is to extinguish these excess departmental appropriation items, ensuring that budgetary resources are accurately allocated and managed.
The instrument is structured to list entities whose appropriation items are to be reduced, as requested by the responsible Minister. Each provision details the entity, the appropriation item, the relevant legislative authority, the requesting Minister, and the amount of reduction. The instrument also notes that it reflects entity and portfolio names as they were contained in the appropriation Acts at the time, subject to changes such as machinery of government reforms. Importantly, while the Legislative Instruments Act 2003 generally exempts appropriation Acts from disallowance, this specific determination is subject to disallowance under section 42 of that Act.
Scope and Application
The instrument in question, the Determination to Reduce Appropriations Upon Request (No. 1 of 2008-2009), applies to specific entities whose departmental appropriation items are to be reduced as per the request of the responsible Minister. This is enacted under the legislative authority provided by subsection 9(1) of the Appropriation Act (No. 1) 2007-2008, allowing the Minister for Finance and Deregulation to make a determination upon receiving a written request from the relevant Minister. The Act is designed to address instances of excess appropriations that might arise due to reclassification, efficiency savings, or policy changes leading to the abolition of a program. The reduction cannot exceed the lesser of the amount requested by the responsible Minister or the balance of the appropriation item remaining in the Consolidated Revenue Fund, as stipulated in subsection 9(5) of the Appropriation Act. The instrument applies to the entities listed in the Schedule, with each entity’s specific reduction determination outlined in individual provisions within the instrument. Despite the general rule exempting instruments made under Annual Appropriation Acts from disallowance, this determination is subject to disallowance as per section 42 of the Legislative Instruments Act 2003.
Key Provisions
The main operative sections of the Determination to Reduce Appropriations Upon Request (No. 1 of 2008-2009) (the Determination) are detailed in the Schedule, which lists the specific entities whose appropriations are subject to reduction. Each provision in the Schedule specifies the entity (Column 1), the appropriation item to be reduced (Column 2), the legislative authority (Column 3), the Minister who requested the reduction (Column 4), and the amount of the reduction (Column 5). For instance, Section 3 of the Schedule specifies that the appropriation item for the Australian Crime Commission (Column 1) under the Appropriation Act (No. 1) 2007-2008 (Column 3) is reduced by a specific amount following a request by the Minister for Defence (Column 4).
The Determination imposes clear obligations on the parties involved. The Minister for Finance and Deregulation is required to issue a determination reducing the appropriation item for an entity upon receiving a written request from the Minister responsible for that entity, subject to the limitations outlined in subsection 9(5) of the Appropriation Act (No. 1) 2007-2008. This means that the reduction cannot exceed the lesser of the amount requested by the responsible Minister and the balance of the appropriation item remaining in the Consolidated Revenue Fund. The responsible Minister must formally request the reduction in writing, ensuring transparency and accountability in the process.
Failure to comply with the provisions of the Determination can lead to legal consequences. Under the Legislative Instruments Act 2003, the Determination is subject to disallowance. This means that Parliament has the power to review and potentially reject the Determination, which could result in the determination being voided if Parliament decides to disallow it within the specified timeframe. There are no specific penalties outlined for breaching the Determination itself, but any failure to adhere to the process could be subject to the broader legal and administrative consequences associated with non-compliance with legislative instruments.
The Determination also references the Appropriation Acts to ensure that the reductions are made within the legal framework governing the appropriation of funds. The Act allows for the reduction of appropriations to manage financial resources more efficiently, ensuring that funds are not unnecessarily retained beyond their intended use. Any misuse or mismanagement of funds could result in further legal scrutiny and potential penalties under other applicable legislation.