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. 11 of 2009-2010)
Date instrument was made: 29 June 2010
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:
Departmental items, CAC Act body payment items and Other departmental items remain available until the appropriation is spent. Provisions in the annual appropriation Acts enable surplus appropriation amounts to be reduced to promote the efficient, effective and ethical management of surplus appropriations. Agencies should only spend from the appropriations if there are government decisions to authorise that expenditure.
The effect of this Instrument is to reduce the appropriation items for the agencies listed in the Schedules by the amount indicated in Column 5 of each item.
Under section 14 of Appropriation Act (No. 1) 2010-2011 and section 16 of Appropriation Act (No. 1) 2010-2011 the Determination must not be rescinded, revoked, amended or varied on or after 1 July 2010.
Background:
Schedule 1: Reduction in Appropriation Act (No. 1) 2006-2007
Item 1: The Attorney-General wrote to the Finance Minister on 23 June 2010 requesting a determination to reduce the Office of the Director of Public Prosecutions’ departmental item by $5,442,084.28. The amount represents savings of appropriation provided to conduct criminal prosecutions arising from the financial collapse of HIH Insurance Limited and related companies.
Schedule 2: Reduction in Appropriation Act (No. 1) 2007-2008
Item 1: The Attorney-General wrote to the Finance Minister on 23 June 2010 requesting a determination to reduce the Attorney-General’s Department’s departmental item by $602,900. The amount is reduced to offset administered cost recovery revenue shortfalls.
Schedule 3: Reduction in Appropriation Act (No. 1) 2008-2009
Item 1: The Attorney-General wrote to the Finance Minister on 23 June 2010 requesting a determination to reduce the Attorney-General’s Department’s departmental item by $934,013.93. The amount is reduced to offset administered cost recovery revenue shortfalls.
Item 2: The Secretary of the Department of Finance and Deregulation sought the Finance Minister’s agreement to reduce the Department of Finance and Deregulation’s departmental item by $2,032,000. This amount represents savings associated with a series of program reviews and amounts no longer required for the Standard Business Reporting measure.
Item 3: The Minister for Innovation, Industry, Science and Research wrote to the Finance Minister on 22 June 2010 requesting a determination to reduce the CAC Act body payment item for the Department of Innovation, Industry, Science and Research for payment to the Australian Institute of Marine Science by $75,000, relating to an estimates reduction.
Item 4: The Treasurer wrote to the Finance Minister on 15 June 2010 requesting a determination to reduce the Australian Taxation Office’s departmental item by $1,847,000. The amount represents surplus appropriation for the Education Tax Refund – public awareness campaign.
Schedule 4: Reduction in Appropriation Act (No. 1) 2009-2010
Item 1: The Minister for Agriculture, Fisheries and Forestry wrote to the Finance Minister on 11 June 2010 requesting a determination to reduce the Department of Agriculture, Fisheries and Forestry departmental item by $1,410,000. The amount represents efficiency savings identified as part of the 2009-10 Mid-Year Economic and Fiscal Outlook (MYEFO) update.
Item 2: The Attorney-General wrote to the Finance Minister on 23 June 2010 requesting a determination to reduce the Australian Federal Police’s (AFP) departmental item by $4,600,000 and the Office of the Dircetor of Public Prosecutions’ (CDPP) departmental item by $1,624,000. The AFP amount represents foreign exchange gains and reduction in costs associated with missions. The CDPP amount represents savings from indexation adjustments.
Item 3: The Minister for Broadband, Communications and the Digital Economy wrote to the Finance Minister on 16 June 2010 requesting a determination to reduce the Department of Broadband, Communication and the Digital Economy’s departmental item by $9,008,000. The amount represents efficiency savings identified as part of the 2009-10 MYEFO update, and other program related savings.
Item 4: The Minister for Climate Change, Energy Efficiency and Water wrote to the Finance Minister on 20 June 2010 requesting a determination to reduce the Department of Climate Change and Energy Efficiency’s departmental item by $10,000,000. The amount represents excess appropriation following the decision to defer the Carbon Pollution Reduction Scheme as announced in the 2010-11 Budget.
Item 5: The Minister for Education, Employment and Workplace Relations wrote to the Finance Minister on 17 June 2010 requesting a determination to reduce the Department of Education, Employment and Workplace Relations’ departmental item by $902,000. The amount represents savings and offset measures considered and taken up in the 2010-11 Budget.
Item 6: The Minister for Foreign Affairs and Trade wrote to the Finance Minister on 24 June 2010 requesting a determination to reduce the Department of Foreign Affairs and Trade’s departmental item by $29,133,884.13. The amount represents the 2009-10 amortisation expense payable by DFAT to the Overseas Property Special Account (OPSA), the funding for which had been quarantined pending the outcome of a review of future funding arrangements for the OPSA.
Item 7: The Minister for Infrastructure, Transport, Regional Development and Local Government wrote to the Finance Minister on 9 June 2010 requesting a determination to reduce the Department of Infrastructure, Transport, Regional Development and Local Government’s departmental item by $1,549,000. The amount represents efficiency savings identified as part of the 2009-10 MYEFO update and savings relating to the Office of the Coordinator-General.
Item 8: The Minister for Innovation, Industry, Science and Research wrote to the Finance Minister on 22 June 2010 requesting a determination to reduce the Department of Innovation, Industry, Science and Research’s departmental item by $4,712,000 and CAC Act body payment item for payment to the Commonwealth Scientific and Industrial Research Organisation by $6,200,000. The amounts reflect savings in a number of programs.
Item 9: The Parliamentary Secretary to the Prime Minister wrote to the Finance Minister on 15 June 2010 and 22 June 2010 requesting a determination to reduce the Department of Prime Minister and Cabinet’s departmental item by $477,000 and the Australian Institute of Family Studies’ departmental item by $47,000. The amounts represent efficiency savings identified as part of the 2009-10 MYEFO update.
The Special Minister of State wrote to the Finance Minister on 20 June 2010 and 23 June 2010 requesting a determination to reduce the Office of the Commonwealth Ombudsman departmental item by $109,000 and the Australian Public Service Commission departmental item by $250,000. The amounts represent efficiency savings identified as part of the 2009-10 MYEFO update.
Item 10: The Treasurer wrote to the Finance Minister on 15 June 2010 requesting a determination to reduce the departmental items of: the Department of the Treasury (Treasury) by $3,736,000; the Australian Office of Financial Management (AOFM) by $69,000; the Australian Securities and Investments Commission (ASIC) by $247,000; the Australian Taxation Office (ATO) $16,638,000; the Commonwealth Grants Commission (CGC) by $37,000; the Corporations and Markets Advisory Committee (CAMAC) by $5,000; the Inspector-General of Taxation (IGT) by $11,000; the National Competition Council (NCC) by $19,000; the Office of the Auditing and Assurance Standards Board (AUASB) $11,000; the Office of the Australian Accounting Standards Board (AASB) by $24,000; and the Productivity Commission (PC) by $173,000. The amounts represent savings identified in the Standard Business Reporting program and GROCERY choice program (Treasury); efficiency savings identified in the 2009‑10 MYEFO update (AOFM, ASIC, ATO, CGC, CAMAC, IGT, NCC, AUASB, AASB and PC); and, savings identified in the Supervision of Australia’s financial markets – reform measure (ASIC).
Schedule 5: Reduction in Appropriation Act (No. 3) 2009-2010
Item 1: The Minister for Defence wrote to the Finance Minister on 17 June 2010 requesting a determination to reduce the Department of Defence’s departmental item by $237,158,000. The amount represents savings arising from foreign exchange movements.
Schedule 6: Reduction in Appropriation Act (No. 2) 2008-2009
Item 1: The Treasurer wrote to the Finance Minister on 15 June 2010 requesting a determination to reduce the Australian Taxation Office’s equity injection by $3,633,000. The amount represents savings identified in the Standard Business Reporting program.
Schedule 7: Reduction in Appropriation Act (No. 4) 2008-2009
Item 1: The Minister for Innovation, Industry, Science and Research wrote to the Finance Minister on 22 June 2010 requesting a determination to reduce the Department of Innovation, Industry, Science and Research’s equity injection by $2,900,000. The amount represents savings in the ‘Australian Business Number and Business Names Registration system – expansion’.
Schedule 8: Reduction in Appropriation Act (No. 2) 2009-2010
Item 1: The Minister for Innovation, Industry, Science and Research wrote to the Finance Minister on 22 June 2010 requesting a determination to reduce the Department of Innovation, Industry, Science and Research’s equity injection by $160,000. The amount represents savings in the Standard Business Reporting program.
Item 2: The Treasurer wrote to the Finance Minister on 15 June 2010 requesting determinations to reduce the Department of the Treasury’s equity injection by $7,438,000 and the Australian Securities and Investments Commission’s equity injection by $1,653,000. The amounts represent savings identified in the Standard Business Reporting program.
Notes on the Instrument:
In accordance with the Legislative Instruments Act 2003, the agencies concerned were consulted in the preparation of this Instrument.