Overview

The Determination to Reduce Appropriations Upon Request (No. 12 of 2010-2011) was enacted on 29 March 2011 by the Minister for Finance and Deregulation under subsection 10(2) of the Appropriation Act (No. 1) 2010-2011. This legislative instrument was introduced to address a surplus appropriation item within the Department of Defence, as identified by the Minister for Defence. The primary objective was to adjust the departmental budget to reflect the actual requirements more accurately, ensuring efficient allocation of financial resources. The determination, which reduces the appropriation item for the Department of Defence by $19,395,000, was made in response to a written request from the Minister for Defence dated 7 March 2011. The reduction accounts for various adjustments, including funding for major operations, employee transfers, foreign exchange rate savings, and a reclassification of appropriation. This legislative instrument is disallowable and was prepared with consultation from the Department of Defence in accordance with the Legislative Instruments Act 2003.

Scope and Application

The Determination to Reduce Appropriations Upon Request (No. 12 of 2010-2011) applies to the Department of Defence and pertains specifically to reducing a departmental item for that agency. This legislative instrument is grounded in the authority granted by subsection 10(2) of the Appropriation Act (No. 1) 2010-2011, which empowers the Minister for Finance and Deregulation to make a determination reducing a departmental appropriation item upon receiving a written request from the relevant Minister responsible for the agency. The instrument is a legislative one and therefore subject to disallowance. The purpose of this determination is to adjust the appropriation item for the Department of Defence, as requested by the Minister for Defence, who identified that the department had surplus funds. The reduction of $19,395,000 is attributed to various adjustments, including no-win/no-loss funding, employee transfers, foreign exchange rate savings, and a reclassification of appropriation. The reduction is set out in Schedule 1 of the instrument, which lists the affected agency, the relevant appropriation act and item, and the reduction amount. The instrument was prepared in consultation with the Department of Defence, as required by the Legislative Instruments Act 2003.

Key Provisions

The main operative sections of the Determination to Reduce Appropriations Upon Request (No. 12 of 2010-2011) are found within its Schedule. Section 1 of the Schedule lists the specific agency, appropriation Act and appropriation item, and details the request from the Minister responsible for the agency, which in this case is the Minister for Defence. The determination specifies that the departmental item for the Department of Defence in the Appropriation Act (No. 1) 2010-2011 is to be reduced by $19,395,000. This reduction is the result of various adjustments including supplementation for no-win/no-loss funding of major operations, increased funding for the transfer of employees, savings from foreign exchange rate movements, and a re-classification of appropriation from operating to non-operating. The obligations imposed by this determination on the parties or entities it governs are primarily administrative and financial. The Minister for Finance and Deregulation is required to reduce the appropriation item as specified in the determination, following a written request from the Minister for Defence. The Department of Defence, as the affected agency, must ensure that the adjustments leading to the reduction are accurately accounted for and reported in its financial records. The reductions must be implemented within the fiscal year 2010-2011 as mandated by the Appropriation Act (No. 1) 2010-2011. Breaching the terms of the determination could have several consequences. Under the Legislative Instruments Act 2003, determinations such as this one are disallowable, meaning they can be annulled by either House of Parliament. Additionally, the Appropriation Act (No. 1) 2010-2011, under which this determination operates, does not explicitly outline specific offences or penalties for non-compliance with the determination. However, failure to adhere to the financial controls and reporting requirements set by the Act could potentially lead to broader financial mismanagement or irregularities, which might invite scrutiny or further legislative action. It is important for the parties involved to ensure compliance to avoid any potential repercussions that may arise from not following the legal and financial protocols established by the Act.