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. 14 of 2010-2011) |
Date instrument was made | 19 April 2011 |
The legislative authority under which the instrument is made | Subsection 11(1) of: - Appropriation Act (No. 2) 2004-2005; and
- Appropriation Act (No. 2) 2007-2008
and, Subsection 13(2) of: - Appropriation Act (No. 2) 2009-2010
enable the Minister for Finance and Deregulation to make a determination reducing an administered assets and liabilities item or an other 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. Subsection 9(1) of: - Appropriation Act (No. 3) 2005-2006; and
- Appropriation Act (No. 3) 2007-2008;
and, Subsection 10(2) of: - Appropriation Act (No. 3) 2008-2009;
- Appropriation Act (No. 1) 2009-2010; and
- Appropriation Act (No. 3) 2009-2010
enable the Minister for Finance and Deregulation to make a 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 these subsections are legislative instruments and are disallowable. |
Purpose and effect of the instrument | The purpose of the instrument is to reduce appropriation items that the Minister for Defence has advised the Minister for Finance and Deregulation are surplus to the requirements of the Department of Defence. Schedule 1 of the Instrument determines that the other departmental item (Equity Injections) for the Department of Defence in Appropriation Act (No. 2) 2004-2005 be reduced by $28,828,000. Schedule 2 of the Instrument determines that the departmental item for the Department of Defence in Appropriation Act (No. 3) 2005-2006 be reduced by $55,800,000. Schedule 3 of the Instrument determines that the other departmental item (Previous Years’ Outputs) for the Department of Defence in Appropriation Act (No. 2) 2007-2008 be reduced by $24,607,000. Schedule 4 of the Instrument determines that the departmental item for the Department of Defence in Appropriation Act (No. 3) 2007-2008 be reduced by $20,163,000. Schedule 5 of the Instrument determines that the departmental item for the Department of Defence in Appropriation Act (No. 3) 2008-2009 be reduced by $78,115,000. Schedule 6 of the Instrument determines that the departmental item for the Department of Defence in Appropriation Act (No. 1) 2009-2010 be reduced by $762,631.51. Schedule 7 of the Instrument determines that the other departmental item (Previous Years’ Outputs) for the Department of Defence in Appropriation Act (No. 2) 2009-2010 be reduced by $141, 401,000. Schedule 8 of the Instrument determines that the departmental item for the Department of Defence in Appropriation Act (No. 3) 2009-2010 be reduced by $99,187,368.49. |
Background | The Minister for Defence wrote to the Minister for Defence on 16 March 2011 requesting a determination to reduce Defence’s departmental appropriation in: - Appropriation Act (No. 2) 2004-2005 by $28,828,000;
- Appropriation Act (No. 3) 2005-2006 by $55,800,000;
- Appropriation Act (No. 2) 2007-2008 by $24,607,000;
- Appropriation Act (No. 3) 2007-2008 by $20,163,000;
- Appropriation Act (No. 3) 2008-2009 by $78,115,000;
- Appropriation Act (No. 1) 2009-2010 by $762,631.51;
- Appropriation Act (No. 2) 2009-2010 by $141,401,000; and
- Appropriation Act (No. 3) 2009-2010 by $99,187,368.49.
The reduction in the departmental appropriation represents excess funds identified due to savings from the movement of foreign exchange rates funded under no win/no loss arrangements; and savings under the no win/no loss funding of Operations. |
Notes on the Instrument | The Schedules to the Instrument contain 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. |
Overview
The Determination to Reduce Appropriations Upon Request (No. 14 of 2010-2011) was enacted on 19 April 2011 by the Minister for Finance and Deregulation under the authority provided by the Appropriation Acts (No. 2 and No. 3) from 2004 to 2010. This legislative instrument was introduced to address a specific issue where the Department of Defence identified surplus funds within its appropriations due to savings from foreign exchange rate movements and other savings under no win/no loss funding arrangements. The determination enables the reduction of certain appropriation items within the Department of Defence by specified amounts as requested by the Minister for Defence. The policy objective of this instrument is to ensure the efficient use of public funds by adjusting appropriations to reflect actual requirements and realised savings.
The instrument comprises several schedules, each detailing the agency affected, the appropriation Act and item to be reduced, the request made by the Minister responsible, and the amount by which the appropriation is to be decreased. The Department of Defence was consulted during the preparation of this instrument in line with the requirements of the Legislative Instruments Act 2003. This legislative instrument underscores the commitment to fiscal prudence and the effective management of public resources.
Scope and Application
The Determination to Reduce Appropriations Upon Request (No. 14 of 2010-2011) is an instrument made under the legislative authority of various Appropriation Acts, primarily to reduce appropriations for the Department of Defence. The instrument applies specifically to the Department of Defence, and its effect is to decrease specific appropriation items as requested by the Minister for Defence and approved by the Minister for Finance and Deregulation. The instrument is jurisdictional in nature, applying under Commonwealth law, and it extends to the financial years specified within the various Appropriation Acts listed. The instrument does not explicitly state any exclusions or exemptions, but its application is limited to the specific appropriation items and amounts detailed in the schedules of the instrument. The authority to make such a determination is further extended through subordinate instruments, enabling the Minister for Finance and Deregulation to adjust appropriations upon receipt of a written request from the relevant Minister. This instrument exemplifies how the Commonwealth can reallocate budgetary resources in response to changing financial requirements or savings identified within departmental budgets.
Key Provisions
The Determination to Reduce Appropriations Upon Request (No. 14 of 2010-2011) outlines the specific appropriations that are to be reduced for the Department of Defence across several appropriation acts. This is achieved through various schedules, each detailing the specific appropriation to be reduced and by how much (Schedules 1-8). These schedules, in turn, reference different appropriation acts from the 2004-2005 to the 2009-2010 financial years, as well as specific appropriation items such as departmental and other departmental items.
The obligations under this legislation include a requirement for the Minister for Finance and Deregulation to act upon receiving a written request from the Minister responsible for the relevant agency. This is stipulated under various subsections of the Appropriation Acts (2004-2010), which empower the Minister for Finance and Deregulation to make the determination to reduce the specified appropriation items. The obligation also extends to the Department of Defence, which must cooperate in identifying and reporting surplus funds, leading to the reductions detailed in the schedules.
The legislation also outlines consequences for breaches. Determinations made under the authority of this legislation are legislative instruments and are subject to disallowance. While specific offences, penalties, or other civil or criminal consequences for breach are not detailed in the text, the disallowance mechanism provides a pathway for parliamentary scrutiny and potential nullification of the determination if deemed inappropriate or unlawful. This ensures that the reductions are made in accordance with legal and budgetary processes.