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. 2 of 2008-2009) dated 23 July 2008.
The legislative authority under which the instrument is made
Subsection 11(1) of Appropriation Act (No. 2) 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 11(5) of Appropriation Act (No. 2) 2007-2008, a determination issued by the Finance Minister under subsection 11(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 item for the entity listed in the Schedule is reduced by the amount indicated in Column 5 of the provision.
Background
The Minister identified in Column 4 of the provisions wrote to the Minister for Finance and Deregulation requesting a determination to reduce the departmental item appropriation for the entity listed in Column 1.
Notes on the instrument
The Schedule to the instrument lists the entity to which a determination applies.
The entity’s reduction determination table is contained within an individual provision. The 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, ACMA was consulted in the preparation of this instrument.
Disallowance
Subsection 11(9) of the Appropriation Acts that this determination is made under provides that a determination made under subsection 11(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. 2 of 2008-2009)" was enacted in 2008 and is an instrument under the Appropriation Act (No. 2) 2007-2008. This legislation was introduced to address the issue of excess appropriations in government departments, which can arise due to reclassifications, efficiency savings, or the abolition of programs. The purpose of this instrument is to enable the Minister for Finance and Deregulation to reduce these excess appropriations in response to written requests from the relevant departmental ministers. This process ensures that unutilised funds are returned to the Consolidated Revenue Fund, thereby maintaining fiscal discipline and efficiency in government spending. The enactment of this instrument is authorised under subsection 11(1) of the Appropriation Act (No. 2) 2007-2008, with the policy objective being to effectively manage government finances by reducing appropriations that are no longer required. The instrument is subject to disallowance under the Legislative Instruments Act 2003.
Scope and Application
The "Determination to Reduce Appropriations Upon Request (No. 2 of 2008-2009)" applies to entities within the Commonwealth of Australia whose appropriation items need to be reduced as per the request of the Minister responsible for that entity. The scope of the Act includes those entities listed in the Schedule of the instrument, which details the specific entities, the appropriation items to be reduced, and the amount of the reduction. This determination is made under the legislative authority of subsection 11(1) of the Appropriation Act (No. 2) 2007-2008, and it cannot reduce an appropriation item by more than the lesser of the amount requested by the responsible Minister or the balance of the appropriation item remaining in the Consolidated Revenue Fund. The Act extends to any entity listed in the Schedule, with reductions reflecting changes in entity and portfolio names as per the appropriation Acts, which may have been altered due to machinery of government changes. The instrument, however, is subject to disallowance under section 42 of the Legislative Instruments Act 2003, despite the general exemption for instruments made under Annual Appropriation Acts.
Key Provisions
The main operative sections of this instrument, as outlined in the Explanatory Statement, include the provision under subsection 11(1) of the Appropriation Act (No. 2) 2007-2008 that allows the Minister for Finance and Deregulation to reduce a departmental item for an entity upon receiving a written request from the Minister responsible for that entity. This is specifically addressed in subsection 11(5), which limits the reduction to the lesser of the amount requested by the responsible Minister or the balance of the appropriation item remaining in the Consolidated Revenue Fund. The purpose of this instrument is to reduce the appropriation item for the entity listed in the Schedule by the amount specified in Column 5 of the provision.
The obligations and requirements imposed by this Act on the parties involved primarily include the process of requesting a reduction in appropriation. The Minister responsible for the entity must submit a written request to the Minister for Finance and Deregulation. This request must detail the specific appropriation item to be reduced and the amount by which it should be reduced. The Minister for Finance and Deregulation must then review the request and, if compliant, issue a determination that reduces the appropriation as requested, but not beyond the limits specified in subsection 11(5). Furthermore, the Act requires that the instrument reflect the current entity and portfolio names as they appear in the appropriation Acts, noting that changes due to machinery of government shifts must be considered.
Regarding consequences for breach, the Explanatory Statement indicates that this determination is a legislative instrument under the Legislative Instruments Act 2003. Despite the general rule that instruments made under Annual Appropriation Acts are not subject to disallowance under section 42 of that Act, this particular determination is still subject to disallowance as provided by subsection 11(9) of the Appropriation Acts. This means that if there are grounds to believe that the determination was made unlawfully or in a manner inconsistent with the legislative authority, either House of Parliament can disallow the determination. There are no explicit penalties mentioned in the text for breaches of the Act's provisions, but the disallowance process serves as a significant administrative and potentially political consequence for any improper actions taken under the Act.