Overview

The Determination to Reduce Appropriations Upon Request (No. 10 of 2011-2012) was made on 7 May 2012 under the authority of the Appropriation Act (No. 1) 2011-2012 and Appropriation Act (No. 2) 2011-2012. The purpose of this instrument was to implement a reduction in appropriation items for the Department of Defence, as requested by the Minister for Defence and in accordance with Government decisions announced in the context of the 2011-12 Budget. This reduction was a result of a MYEFO Foreign Exchange handback, partially offset by a DMO Direct Appropriation Adjustment for employee transfers between Defence and DMO, and increases to the Afghanistan – Detainee Management Measure. The enactment body for this instrument was the Finance Minister, who made the determination upon receipt of a written request from the Minister for Defence. The policy objective was to ensure that the government's financial commitments align with its budgetary decisions, thereby maintaining fiscal responsibility.

Scope and Application

The Determination to Reduce Appropriations Upon Request (No. 10 of 2011-2012) applies to the Department of Defence, reducing specific appropriation items as per the request from the Minister for Defence. Authorised under subsection 10(2) of the Appropriation Act (No. 1) 2011-2012 and subsection 13(2) of the Appropriation Act (No. 2) 2011-2012, this instrument reduces the departmental item for Defence by $16,835,000 and the other departmental item (Equity Injections) by $135,531,000, following the Government’s decision in the context of the 2011-12 Budget. The reductions were agreed upon and announced in April 2012, relating to a MYEFO Foreign Exchange handback and adjustments for employee transfers and the Afghanistan – Detainee Management Measure. These legislative instruments are disallowable, and the affected appropriation items are detailed in the Schedules of the instrument. Defence was consulted in the preparation of this instrument in accordance with the Legislative Instruments Act 2003.

Key Provisions

The key operative sections of the Determination to Reduce Appropriations Upon Request (No. 10 of 2011-2012) are found in the schedules of the instrument, specifically Schedule 1 and Schedule 2. These schedules detail the reductions to the departmental items for the Department of Defence (Defence) under the Appropriation Act (No. 1) 2011-2012 and the other departmental item (Equity Injections) for Defence under the Appropriation Act (No. 2) 2011-2012, respectively. The determinations specify the amounts by which these items are to be reduced, as per the written request from the Minister for Defence to the Minister for Finance and Deregulation. The Act imposes specific obligations and requirements on the parties it governs. The Minister for Finance and Deregulation is mandated to reduce the appropriation items as per the written request from the responsible Minister, in this case, the Minister for Defence. The determination must be made in accordance with the legislative authority granted by the Appropriation Act (No. 1) 2011-2012 and the Appropriation Act (No. 2) 2011-2012, specifically under subsections 10(2) and 13(2). Additionally, the determination process requires consultation with the affected agency, Defence, to ensure that the reductions are made as per the government’s financial decisions. The Act also delineates the consequences for non-compliance. While the Act does not explicitly outline specific offences, penalties, or civil/criminal consequences for breach, it does state that the determinations are legislative instruments and are subject to disallowance. This means that if the determinations were to be deemed invalid, they could be overturned by either House of Parliament, effectively nullifying the reductions in appropriations. Additionally, the reductions in appropriations as specified in the determinations are part of the government's financial strategy, and failure to implement these reductions could result in budgetary discrepancies or financial mismanagement within the affected department.