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. 10 of 2009-2010) |
Date instrument was made | 17 June 2010 |
The legislative authority under which the instrument is made | Subsection 10(2) of annual appropriation Acts for ordinary annual services (eg. No. 1 and No. 3) enable the Minister for Finance and Deregulation (Finance Minister) to make a determination reducing a departmental item. A determination made under subsection 10(2) must be in accordance with a written request made to the Finance Minister by the responsible Minister for the entity. A determination made under subsection 10(2) is a Legislative Instrument and is disallowable. |
Purpose and effect of the instrument | Schedule 1, Item 1 of the Instrument determines that the departmental item for the Department of Human Services (DHS) in Appropriation Act (No. 1) 2008-2009 be reduced by $1,797,000. The effect of this Instrument is to reduce the departmental item for DHS in Schedule 1 of Appropriation Act (No. 1) 2008-2009 by the amount of $1,797,000. |
Background | The Minister for Human Services wrote to the Finance Minister on 24 March 2010 requesting a determination to reduce DHS’s departmental item under Appropriation Act (No. 1) 2008-2009. The appropriation in question was provided for the Murray-Darling Basin and Electronic Medicare Claiming Campaigns and is no longer required. |
Notes on the Instrument | Schedule 1 to the Instrument contains a table listing the affected agency in column 1, the appropriation Act and appropriation item in column 2, the legislative authority in column 3, which through the request by the responsible Minister in column 4, is reduced by the amount in column 5. In accordance with the Legislative Instruments Act 2003, DHS was consulted in the preparation of this Instrument. |
Overview
The Determination to Reduce Appropriations Upon Request (No. 10 of 2009-2010) was enacted under subsection 10(2) of annual appropriation Acts for ordinary annual services, providing authority to the Minister for Finance and Deregulation to reduce departmental items upon a written request from the relevant Minister. This legislative instrument was made on 17 June 2010 and aims to address the need to adjust appropriations that are no longer required. Specifically, the instrument was introduced to reduce the departmental item for the Department of Human Services (DHS) by $1,797,000 as requested by the Minister for Human Services on 24 March 2010, reflecting the cessation of funding for the Murray-Darling Basin and Electronic Medicare Claiming Campaigns. The reduction is effective as per Schedule 1 of the Appropriation Act (No. 1) 2008-2010, and the process involved consultation with DHS in line with the Legislative Instruments Act 2003.
Scope and Application
The Determination to Reduce Appropriations Upon Request (No. 10 of 2009-2010) applies to the Department of Human Services (DHS) and specifically targets the reduction of its departmental item under the Appropriation Act (No. 1) 2008-2009. This legislative instrument was authorised by subsection 10(2) of the annual appropriation Acts for ordinary annual services, and it mandates that any reduction must follow a written request from the responsible Minister for the entity, in this case, the Minister for Human Services. The effect of this instrument is to decrease the DHS departmental item by $1,797,000, which was previously allocated for the Murray-Darling Basin and Electronic Medicare Claiming Campaigns, but is no longer required. This determination is a Legislative Instrument and is subject to disallowance. The scope of the instrument is limited to the Commonwealth jurisdiction and is specifically crafted to address the appropriations of the DHS, with no broader application to other departments, entities, or industries. The instrument was prepared in consultation with DHS, as required by the Legislative Instruments Act 2003.
Key Provisions
The main operative section of this legislation, subsection 10(2) of the annual appropriation Acts for ordinary annual services, provides the authority for the Minister for Finance and Deregulation to reduce a departmental item upon a written request from the responsible Minister for the entity. Specifically, Schedule 1, Item 1 of the Determination to Reduce Appropriations Upon Request (No. 10 of 2009-2010) reduces the departmental item for the Department of Human Services (DHS) in Appropriation Act (No. 1) 2008-2009 by $1,797,000. This reduction was made in response to a request from the Minister for Human Services, who identified that the funds, originally allocated for the Murray-Darling Basin and Electronic Medicare Claiming Campaigns, were no longer required.
The Act imposes specific obligations and requirements on both the Minister for Finance and Deregulation and the responsible Minister for the entity. The Minister for Finance and Deregulation must ensure that any determination to reduce a departmental item is made in accordance with a written request from the relevant Minister and must comply with the legislative authority under subsection 10(2). The responsible Minister, in this case, the Minister for Human Services, must provide a written request identifying the departmental item to be reduced and the rationale for the reduction. Additionally, the Act mandates that the affected agency, in this instance, DHS, is to be consulted in the preparation of the determination, ensuring transparency and compliance with the Legislative Instruments Act 2003.
There are no explicit offences or penalties outlined in the Act for breaching its provisions. However, the legislative framework requires strict adherence to the process for making a determination to reduce a departmental item. Any failure to comply with the requirements could potentially render the determination invalid, leading to legal and procedural consequences. The Act's disallowable nature under the Legislative Instruments Act 2003 further underscores the importance of following the prescribed processes and obligations. Any non-compliance could result in the determination being subject to disallowance, which would necessitate corrective actions to ensure lawful appropriation of funds.