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 Upon Request (No. 1 of 2011-2012) |
Date instrument was made | 19 July 2011 |
The legislative authority under which the instrument is made | Subsection 9(1) of Appropriation Act (No. 1) 2007-2008 and subsection 10(2) of Appropriation Act (No. 1) 2009-2010 enables the Minister for Finance and Deregulation (Finance Minister) to make a determination reducing a departmental item for an agency by the amount specified in the Determination, upon receipt of a written request from the Minister responsible for that agency. Determinations made under this subsection are legislative instruments and are disallowable. |
Purpose and effect of the instrument | The purpose of the instrument is to reduce appropriation items that the Minister for Immigration and Citizenship has advised the Finance Minister are surplus to the requirements of the Department of Immigration and Citizenship (DIAC). Schedule 1 determines that the departmental item for DIAC in Appropriation Act (No. 1) 2007-2008 be reduced by $39,616,999. Schedule 2 determines that the departmental item for DIAC in Appropriation Act (No. 1) 2009-2010 be reduced by $37,763,000. |
Background | The Minister for Immigration and Citizenship wrote to the Finance Minister in a letter received on 4 July 2011 requesting a determination to reduce DIAC’s appropriations. DIAC has a funding model which requires post financial year reconciliation of expenses against funded activity levels. Following DIAC’s funding model reconciliation process, DIAC has determined that it was appropriated $77,379,999 in excess of the activity level that was achieved. |
Notes on the Instrument | The Schedules to the Instrument contain a table 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. In accordance with the Legislative Instruments Act 2003, DIAC was consulted in the preparation of this Instrument. |
Overview
The Determination to Reduce Appropriations Upon Request (No. 1 of 2011-2012) was enacted on 19 July 2011, under the authority of the Minister for Finance and Deregulation. This legislative instrument was created in response to a specific issue identified within the Department of Immigration and Citizenship (DIAC), where it was found that the department had been over-appropriated by a significant amount following a reconciliation of expenses against funded activity levels. The determination was made pursuant to the provisions of the Appropriation Act (No. 1) 2007-2008 and the Appropriation Act (No. 1) 2009-2010, allowing the Minister for Finance and Deregulation to adjust the appropriations of a department following a written request from the relevant Minister responsible for that department. The policy objective behind this determination was to ensure fiscal efficiency and to adjust the budgetary allocations of the department to reflect its actual requirements, thus preventing unnecessary expenditure and promoting responsible financial management within the government.
Scope and Application
The Determination to Reduce Appropriations Upon Request (No. 1 of 2011-2012) applies specifically to the Department of Immigration and Citizenship (DIAC) and concerns the reduction of certain appropriation items identified as surplus following a reconciliation process conducted by DIAC. This determination, made under the authority of the Minister for Finance and Deregulation, follows a request from the Minister for Immigration and Citizenship, who identified these surplus funds in a letter dated 4 July 2011. The instrument reduces the departmental appropriations for DIAC in two Appropriation Acts: Appropriation Act (No. 1) 2007-2008 and Appropriation Act (No. 1) 2009-2010, by $39,616,999 and $37,763,000 respectively. This reduction is specified in the schedules attached to the instrument, which detail the affected agency, appropriation Act, appropriation item, and the reduction amount. The instrument adheres to the Legislative Instruments Act 2003, ensuring that DIAC was consulted during its preparation. The instrument is a legislative instrument and is disallowable, meaning it can be reviewed and potentially negated by Parliament.
Key Provisions
The Determination to Reduce Appropriations Upon Request (No. 1 of 2011-2012) is a legislative instrument made under the authority of subsection 9(1) of the Appropriation Act (No. 1) 2007-2008 and subsection 10(2) of the Appropriation Act (No. 1) 2009-2010. This determination was made in response to a written request from the Minister for Immigration and Citizenship, received by the Minister for Finance and Deregulation on 4 July 2011. The primary objective of this instrument is to adjust the appropriation items for the Department of Immigration and Citizenship (DIAC) to reflect a surplus in funding as determined by the Department following its reconciliation of expenses against the funded activity levels.
Specifically, Schedule 1 of the Determination reduces the departmental item for DIAC in the Appropriation Act (No. 1) 2007-2008 by $39,616,999, while Schedule 2 reduces the departmental item in the Appropriation Act (No. 1) 2009-2010 by $37,763,000. This adjustment follows DIAC's determination that it was overfunded by a total of $77,379,999. The instrument, as a legislative instrument, is disallowable, meaning it can be reviewed and potentially annulled by Parliament.
The obligations and requirements imposed by this Act are primarily on the Minister for Finance and Deregulation and the Minister for Immigration and Citizenship. The Minister for Finance and Deregulation is mandated to make the determination to reduce appropriations upon receiving a written request from the Minister for Immigration and Citizenship. The Minister for Immigration and Citizenship, on the other hand, is responsible for assessing and confirming the surplus funding and requesting the necessary adjustments. This process ensures that the funding allocations are aligned with the actual requirements and activities of DIAC.
There are no specific offences, penalties, or civil/criminal consequences outlined in the Determination itself. However, the legislative framework within which this Determination operates includes provisions that may result in consequences for non-compliance with the appropriation process. For example, the Legislative Instruments Act 2003, under which this Determination was made, mandates consultation with the affected agency, in this case DIAC. Failure to comply with such legislative requirements could potentially lead to legal challenges or review of the instrument by the courts. Moreover, any misuse of funds or improper allocation of appropriations could attract penalties and legal consequences under broader financial and public administration laws.