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. 16 of 2010-2011) |
Date instrument was made | 7 June 2011 |
The legislative authority under which the instrument is made | Subsection 11(1) of: - Appropriation Act (No. 2) 2004-2005;
- Appropriation Act (No. 2) 2006-2007; and
- Appropriation Act (No. 2) 2007-2008;
Subsection 13(2) of: - Appropriation Act (No. 2) 2008-2009; and
- Appropriation Act (No. 2) 2009-2010;
and, Subsection 10(2) of: - Appropriation Act (No. 1) 2009-2010; and
- Appropriation Act (No. 1) 2010-2011
enable the Minister for Finance and Deregulation (Finance Minister) to make a determination reducing an other departmental item or 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 Human Services has advised the Minister for Finance and Deregulation are surplus to the requirements of Medicare Australia. Schedule 1 determines that the other departmental item (Equity Injections) for Medicare Australia in Appropriation Act (No. 2) 2004-2005 be reduced by $298,610. Schedule 2 determines that the other departmental item (Equity Injections) for Medicare Australia in Appropriation Act (No. 2) 2006-2007 be reduced by $4,206,000. Schedule 3 determines that the other departmental item (Equity Injections) for Medicare Australia in Appropriation Act (No. 2) 2007-2008 be reduced by $4,357,390.53. Schedule 4 determines that the other departmental item (Equity Injections) for Medicare Australia in Appropriation Act (No. 2) 2008-2009 be reduced by $1,292,351. Schedule 5 determines that the departmental item for Medicare Australia in Appropriation Act (No. 1) 2009-2010 be reduced by $200,000. Schedule 6 determines that the other departmental item (Equity Injections) for Medicare Australia in Appropriation Act (No. 2) 2009-2010 be reduced by $656,000. Schedule 7 determines that the departmental item for Medicare Australia in Appropriation Act (No. 1) 2010-2011 be reduced by $378,000. |
Background | The Minister for Human Services wrote to the Finance Minister on 9 May 2011 requesting a determination to reduce Medicare Australia’s appropriations. The reductions represent excess appropriation which is no longer required. |
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, Medicare Australia was consulted in the preparation of this Instrument. |
Overview
The Determination to Reduce Appropriations Upon Request (No. 16 of 2010-2011) was enacted in 2011 to address the issue of surplus appropriations for Medicare Australia. This instrument was created under the authority of the Appropriation Acts of various years, enabling the Minister for Finance and Deregulation to adjust appropriation items upon request from the relevant Minister. The primary objective of this determination is to align the appropriations more closely with the operational needs of Medicare Australia by reducing certain budget allocations that have been identified as surplus. The determinations were made in response to a written request from the Minister for Human Services, who identified specific funds that were no longer required. This legislative instrument aims to ensure fiscal efficiency by eliminating unnecessary budget allocations.
Scope and Application
The Determination to Reduce Appropriations Upon Request (No. 16 of 2010-2011) applies to appropriations made to Medicare Australia, a Commonwealth entity responsible for administering Australia’s public health insurance scheme. The determination affects specific appropriation items for Medicare Australia listed in the Appropriation Acts of various financial years, namely 2004-2005, 2006-2007, 2007-2008, 2008-2009, 2009-2010, and 2010-2011. This instrument was enacted to reduce the specified appropriation items by amounts determined to be surplus, following a request by the Minister for Human Services. The reductions were implemented in response to the advice that the appropriations were no longer required for the purposes of Medicare Australia’s operations. The instrument is a legislative instrument and is disallowable. The application of the instrument is limited to the specified appropriation items and financial years, and does not extend to any other entities, industries, conduct, or transactions outside the scope of the request or the listed appropriations.
Key Provisions
The Determination to Reduce Appropriations Upon Request (No. 16 of 2010-2011) provides for the reduction of specific appropriation items for Medicare Australia, following a request by the Minister for Human Services. This determination, which is made under various sections of the Appropriation Acts from 2004-2005 to 2010-2011, allows the Minister for Finance and Deregulation to reduce either an other departmental item or a departmental item for Medicare Australia. The reductions are specified in the schedules of the instrument, each targeting different appropriation items across various financial years. For instance, Schedule 1 reduces the other departmental item (Equity Injections) for Medicare Australia in the Appropriation Act (No. 2) 2004-2005 by $298,610, while Schedule 7 reduces the departmental item for Medicare Australia in the Appropriation Act (No. 1) 2010-2011 by $378,000. Each schedule lists the affected agency, the relevant appropriation Act and item, the request made by the responsible Minister, and the specified reduction amount.
The Act imposes obligations on the Minister for Finance and Deregulation to review and act upon the written request from the Minister for Human Services regarding the reduction of appropriation items. Once a request is received, the Minister for Finance and Deregulation is required to make a determination that reduces the specified appropriation items as outlined in the request. The determination must be made within the legislative authority provided by the relevant Appropriation Acts, ensuring that the process is transparent and legally compliant. Additionally, the Act mandates that the affected agency, Medicare Australia, be consulted in the preparation of this instrument, as per the Legislative Instruments Act 2003.
The Determination includes provisions that outline the potential consequences for non-compliance with the terms of the instrument. While the explanatory statement does not detail specific offences or penalties, it does note that determinations made under these subsections are legislative instruments and are disallowable. This implies that if the determination is found to be inconsistent with the relevant legislation or is otherwise unlawful, it may be subject to disallowance by Parliament. Furthermore, the legislative instruments made under the authority of the Appropriation Acts are subject to the scrutiny and disallowance procedures outlined in the Legislative Instruments Act 2003, which include the possibility of parliamentary review and disallowance if the instruments are deemed to be invalid or improper.