Determination to Reduce Appropriations Upon Request (No. 13 of 2007-2008)

Overview

The "Determination to Reduce Appropriations Upon Request (No. 13 of 2007-2008)" was enacted in 2008 by the Australian Parliament under the authority of the Appropriation Acts (No. 4) 2006-2007 and (No. 2) 2007-2008. This legislation was introduced to address the issue of excess departmental appropriations, which can arise due to reclassifications, efficiency savings, or policy changes that result in a program costing less than expected or being abolished before the appropriation is expensed. The policy objective is to enable the Minister for Finance and Deregulation to reduce these excess items upon request from the relevant Minister, ensuring that the Consolidated Revenue Fund is accurately reflecting the true financial position of government entities. The instrument lists specific entities and the amounts by which their appropriations are to be reduced, as requested by their respective Ministers, and ensures that the reductions do not exceed the amount requested or the balance remaining in the fund.

Scope and Application

The Determination to Reduce Appropriations Upon Request (No. 13 of 2007-2008), dated 24 June 2008, applies to specific entities listed in the Schedules of the instrument. These entities, whose appropriation items are subject to reduction, are identified by portfolio and include various government departments and agencies. The scope of the Act is limited to the entities specified in the Schedules, each of which has its appropriation item reduced in accordance with a written request from the responsible Minister and under the authority granted by subsection 11(1) of the Appropriation Act (No. 4) 2006-2007 and Appropriation Act (No. 2) 2007-2008. The reduction is made to address excess departmental appropriation items arising from various circumstances such as reclassifications, efficiency savings, or policy changes leading to the abolition of programs. The Act’s application is geographically and jurisdictionally confined to the Commonwealth level, and it does not extend to state or territory governments. The instrument also includes provisions for disallowance under section 42 of the Legislative Instruments Act 2003, despite general exemptions for instruments made under Annual Appropriation Acts.

Key Provisions

The main operative sections of the Determination to Reduce Appropriations Upon Request (No. 13 of 2007-2008) are sections 11(1) and 11(5) of the Appropriation Act (No. 4) 2006-2007 and Appropriation Act (No. 2) 2007-2008. Section 11(1) empowers the Minister for Finance and Deregulation to issue a determination that reduces an administered assets and liabilities item or an other departmental item for an entity, by the specified amount, upon receipt of a written request from the Minister responsible for that entity. Section 11(5) sets a limit on the amount of reduction, which cannot exceed the lesser of the amount requested by the responsible Minister and the balance of the appropriation item remaining in the Consolidated Revenue Fund. These sections allow for the reduction of excess appropriation items in various scenarios, such as reclassifications, efficiency savings, or the abolition of a government program. The Act imposes specific obligations on the parties involved. The Minister responsible for an entity must submit a written request to the Minister for Finance and Deregulation if they wish to reduce an appropriation item for their entity. This request must be specific about the entity, the appropriation item, and the amount of the reduction. The Minister for Finance and Deregulation, upon receiving such a request, must ensure that the reduction does not exceed the limits specified in the Act. Additionally, each entity identified in the instrument was consulted in the preparation of this instrument as required by the Legislative Instruments Act 2003. The Act also outlines consequences for non-compliance or improper use of its provisions. According to subsection 11(9) of the Appropriation Acts, the determination is a legislative instrument and, despite subsection 44(2) of the Legislative Instruments Act 2003, which generally exempts instruments made under Annual Appropriation Acts from disallowance, section 42 of the Legislative Instruments Act 2003 applies to this determination. This means that the determination can be subject to disallowance, which is a process by which a legislative instrument can be reviewed and potentially invalidated by Parliament. Although specific penalties are not detailed in the Act, the disallowance process itself serves as a significant consequence for any breaches of the legislative provisions. Overall, the Determination to Reduce Appropriations Upon Request (No. 13 of 2007-2008) provides a structured framework for reducing excess departmental appropriations, ensuring that such reductions are carried out within the bounds set by law and with appropriate oversight. The Act clearly delineates the roles and responsibilities of the Ministers involved and establishes a mechanism for disallowance to maintain legislative integrity.