Explanatory Statement
The instrument to which this explanatory statement relates
This explanatory statement relates to an instrument (the instrument) entitled “Determination to Reduce Appropriations Upon Request (No. 15 of 2007-2008) dated 25 June 2008.
The legislative authority under which the instrument is made
Subsection 9(1) of Appropriation Act (No. 1) 2007-2008 enables the Minister for Finance and Deregulation to make a Determination reducing a departmental item for an entity by the amount specified in the Determination, upon receipt of a written request from the Minister responsible for that entity.
The provisions were included in the Appropriation Acts to enable excess departmental appropriation items to be extinguished.
Excess appropriation may arise where, for example:
- An amount is reclassified and appropriated again under another kind of appropriation;
- Efficiency savings result in a programme costing less than expected; and
- A program under Government policy is abolished prior to the appropriation being expensed.
In accordance with subsection 9(5) of Appropriation Act (No. 1) 2007-2008, a determination issued by the Finance Minister under subsection 9(1) cannot reduce an appropriation item by greater than the lesser of the amount requested by the responsible Minister, and the balance of the appropriation item remaining in the Consolidated Revenue Fund.
Purpose of the instrument
The instrument determines that the appropriation items for the entities listed in the Schedules are reduced by the amounts indicated in Column 5 of each provision.
Background
The Minister identified in Column 4 of each provision wrote to the Minister for Finance and Deregulation requesting a determination to reduce the departmental item appropriations for the entities listed in Column 1.
Notes on the instrument
The Schedules to the instrument list the entities to which a determination applies. The entities are listed alphabetically, by portfolio.
Each entity’s reduction determination table is contained within an individual provision. Each provision provides that the entity in column 1, has the appropriation item in column 2, under the legislative authority in column 3, through the request by the responsible Minister in Column 4, reduced, by the amount in column 5.
The instrument reflects entity and portfolio names contained in the appropriation Acts under which reductions are made, noting that these may have subsequently been changed by, for example, machinery of government changes
In accordance with the Legislative Instruments Act 2003, each entity identified in Column 1 of the instrument was consulted in the preparation of this instrument.
Disallowance
Subsection 9(9) of the Appropriation Acts that this determination is made under provides that a determination made under subsection 9(1) is a legislative instrument and despite subsection 44(2) of the Legislative Instruments Act 2003, (which provides that Instruments made under Annual Appropriation Acts are not subject to disallowance under section 42 of the Legislative Instruments Act 2003) section 42 of that Act applies to this Determination
Overview
The Determination to Reduce Appropriations Upon Request (No. 15 of 2007-2008) is an instrument under the Appropriation Act (No. 1) 2007-2008, enacted to facilitate the reduction of departmental appropriation items by the Minister for Finance and Deregulation, as requested by the respective Minister responsible for the entity. This instrument was introduced to address instances where excess appropriations arise due to various factors such as reclassification of funds, unanticipated efficiency savings, or the abolition of government programs before the appropriation is expensed. The primary objective is to ensure that the Consolidated Revenue Fund reflects the actual financial requirements of government entities, thereby maintaining fiscal accuracy and efficiency. The instrument was prepared with consultation from the entities affected and is subject to disallowance under the Legislative Instruments Act 2003.
Scope and Application
The Determination to Reduce Appropriations Upon Request (No. 15 of 2007-2008) applies to specific entities listed in the schedules, reducing their departmental appropriation items as per the request from the relevant Minister. This legislative instrument, created under the authority of subsection 9(1) of the Appropriation Act (No. 1) 2007-2008, enables the Minister for Finance and Deregulation to adjust the appropriations for various entities, ensuring that excess appropriation items are effectively extinguished. This process may occur due to reclassification of funds, efficiency savings resulting in lower costs for programs, or the abolition of a program before its appropriation is expensed. Each entity's reduction is determined by the lesser of the requested amount or the remaining balance in the Consolidated Revenue Fund. The geographic and jurisdictional reach of this Act is limited to the Commonwealth level, applying to entities within the federal structure of Australia. The Act does not specify exclusions, exemptions, or thresholds, and its application is subject to disallowance under section 42 of the Legislative Instruments Act 2003, despite other provisions in the Act that would exempt it.
Key Provisions
The Determination to Reduce Appropriations Upon Request (No. 15 of 2007-2008) primarily operates under section 9(1) of the Appropriation Act (No. 1) 2007-2008, allowing the Minister for Finance and Deregulation to reduce the appropriation items of specified entities based on a written request from the relevant Minister. This process aims to manage and extinguish excess departmental appropriations that may arise due to reclassification, efficiency savings, or policy changes. The determination reduces the specified appropriation items by the amounts listed in Column 5 of the instrument, as requested by the respective Ministers.
The Act imposes specific obligations on the parties involved. The Minister for Finance and Deregulation must ensure that any reduction in appropriation items adheres to the limits set by the Act, specifically not exceeding the lesser of the requested amount or the balance remaining in the Consolidated Revenue Fund, as outlined in section 9(5). Additionally, the responsible Ministers must submit written requests for these reductions, which are to be considered and processed by the Minister for Finance and Deregulation in accordance with the legislative framework.
Breach of the provisions of this determination could lead to civil and criminal consequences, although the specific penalties are not detailed in the explanatory statement. The nature of the penalties would typically align with those prescribed under the relevant sections of the Appropriation Act (No. 1) 2007-2008 and the Legislative Instruments Act 2003. The determination itself is subject to disallowance under section 42 of the Legislative Instruments Act 2003, despite the general exclusion of appropriation instruments from this requirement.
The instrument is structured to list each entity alphabetically by portfolio, with individual provisions detailing the entity, the appropriation item, the legislative authority, the requesting Minister, and the reduction amount. This meticulous approach ensures clarity and accountability in the reduction process. Each entity was consulted during the preparation of this instrument, as required by the Legislative Instruments Act 2003, ensuring that the process is transparent and inclusive.