The instrument to which this explanatory statement relates

Determination to Reduce Appropriations Upon Request (No. 12 of 2010-2011)

Date instrument was made

29 March 2011

The legislative authority under which the instrument is made

Subsection 10(2) of Appropriation Act (No. 1)
2010-2011 enables the Minister for Finance and Deregulation to make a written 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 subsection 10(2) are legislative instruments and are disallowable.

Purpose and effect of the instrument

The purpose of the instrument is to reduce the appropriation item that the Minister for Defence has advised the Minister for Finance and Deregulation is surplus to the requirements of the Department of Defence (Defence).

Schedule 1 of the Instrument determines that the departmental item for the Department of Defence in Appropriation Act (No. 1) 2010-2011 be reduced by $19,395,000.

Background

The Minister for Defence wrote to the Minister for Finance and Deregulation on 7 March 2011 requesting a determination to reduce Defence’s departmental item in Appropriation Act (No. 1) 2010-2011.

The amount of the reduction is the sum of a number of adjustments arising from: supplementation under the
no-win/no-loss funding of major operations; increased funding related to the transfer of employees from the Defence Materiel Organisation to Defence; savings from the movement of foreign exchange rates under
no-win/no-loss arrangements; and a re-classification of appropriation from operating to non-operating.

Notes on the Instrument

The Schedule to the Instrument contains 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, the Department of Defence was consulted in the preparation of this Instrument.