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. 13 of 2010-2011) |
Date instrument was made | 15 April 2011 |
The legislative authority under which the instrument is made | Subsection 10(2) of Appropriation Act (No. 3) 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 Treasurer has advised the Minister for Finance and Deregulation is surplus to the requirements of the Department of the Treasury (Treasury). Schedule 1 of the Instrument determines that the departmental item for the Department of the Treasury in Appropriation Act (No. 3) 2010-2011 be reduced by $926,000. |
Background | The Treasurer wrote to the Minister for Finance and Deregulation on 5 April 2011 requesting a determination to reduce Treasury’s 2010-11 departmental appropriation. The reduction in the departmental appropriation represents excess funds in the 2010-11 year as the timing of expenditure has changed and funding will be re-appropriated in 2011-12 for expenditure in that year. |
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 the Treasury was consulted in the preparation of this Instrument. |
Overview
The Determination to Reduce Appropriations Upon Request (No. 13 of 2010-2011) was enacted on 15 April 2011 to address the issue of surplus funds within the Department of the Treasury for the 2010-11 financial year. This instrument was made under the authority of the Minister for Finance and Deregulation, pursuant to subsection 10(2) of the Appropriation Act (No. 3) 2010-2011. The primary objective of this determination is to reduce the appropriation item for the Department of the Treasury by $926,000, as advised by the Treasurer, due to a change in the timing of expenditure, with the surplus funds to be re-appropriated in the 2011-12 financial year. This legislative instrument ensures that any surplus funds are properly managed and reallocated to meet future financial requirements, thereby maintaining fiscal discipline and efficiency within the government's budgetary processes.
Scope and Application
The Determination to Reduce Appropriations Upon Request (No. 13 of 2010-2011) applies specifically to the Department of the Treasury, a Commonwealth department responsible for economic, financial, and fiscal policy, and its appropriation under the Appropriation Act (No. 3) 2010-2011. This legislative instrument was enacted pursuant to subsection 10(2) of the Appropriation Act, which empowers the Minister for Finance and Deregulation to reduce a departmental appropriation upon receiving a written request from the relevant Minister, in this case, the Minister for Treasury. The reduction in appropriation is a result of the Treasurer's advice to the Minister for Finance and Deregulation, indicating a surplus of funds due to altered expenditure timing, with re-appropriation scheduled for the subsequent financial year. The determination is disallowable, reflecting its legislative nature and the scrutiny it is subject to. This instrument does not extend its application to any other entities or departments, nor does it explicitly state any exclusions, exemptions, or thresholds beyond the specifics outlined in the determination itself. The impact is confined to the financial restructuring of the Department of the Treasury's appropriation for the 2010-11 period.
Key Provisions
The primary operative sections of the Determination to Reduce Appropriations Upon Request (No. 13 of 2010-2011) are outlined in Schedule 1, which details the reduction of the departmental item for the Department of the Treasury by $926,000. This is done pursuant to the request of the Minister responsible for the department, as permitted under subsection 10(2) of the Appropriation Act (No. 3) 2010-2011. The determination was made to address a surplus in funds for the 2010-2011 financial year due to a change in the timing of expenditure, with the funds to be re-appropriated in 2011-2012.
The Act imposes specific obligations on the Minister for Finance and Deregulation to process the written request from the responsible Minister and to make a written determination reducing the appropriation item as specified. The determination is a legislative instrument and, as such, is subject to disallowance. Furthermore, the Act requires that the Department of the Treasury be consulted in the preparation of this instrument, ensuring that the determination aligns with the needs and circumstances of the department.
Breaches of the Act, in terms of the obligations and requirements, could result in civil or criminal consequences. Under the Legislative Instruments Act 2003, the instrument is disallowable, meaning that either house of Parliament may disallow the instrument. Additionally, any failure to adhere to the prescribed procedures for making the determination could result in legal challenges or other repercussions for the Minister for Finance and Deregulation. While the Act does not explicitly outline penalties for such breaches, the seriousness of the disallowance process and the potential impact on the appropriations process underscore the importance of compliance.