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.20 of 2010-2011)
Date instrument was made: 30 June 2011
The legislative authority under which the instrument is made
The legislative authority under which the Instrument is made is detailed in clause 3 of the Determination.
Purpose and effect of the instrument
Departmental items, CAC Act body payment items and other departmental items remain available until the appropriation is spent. Provisions in the annual Appropriation Acts enable surplus appropriation amounts to be reduced to promote the efficient, effective and ethical management of surplus appropriations. Agencies should only spend from appropriations if there are government decisions to authorise that expenditure.
The effect of this Instrument is to reduce the appropriation items for the agencies listed in the Schedules by the amount indicated in Column 4 of each item.
Background
Schedule 1: Reduction in Appropriation Act (No. 1) 2006-2007
Item 1: The Attorney-General wrote to the Minister for Finance and Deregulation (Finance Minister) on 21 June 2011 requesting a determination to reduce the Federal Court of Australia’s departmental item by $349,000. The amount represents the return of unspent appropriation in relation to jury fees for criminal cartel jurisdiction.
Schedule 2: Reduction in Appropriation Act (No. 4) 2006-2007
Item 1: The Secretary of the Department of Finance and Deregulation on 9 June 2011 sought the Finance Minister’s agreement to reduce the Department of Finance and Deregulation’s other departmental item (Equity Injections) by $4,030,923.46. The amount represents unspent capital appropriation from the Christmas Island Immigration Detention Centre Project.
Schedule 3: Reduction in Appropriation Act (No. 1) 2007-2008
Item 1: The Attorney-General wrote to the Finance Minister on 21 June 2011 requesting a determination to reduce the Federal Court of Australia’s departmental item by $350,000. The amount represents the return of unspent appropriation in relation to jury fees for criminal cartel jurisdiction.
Item 2: The Secretary of the Department of Finance and Deregulation on 9 June 2011 sought the Finance Minister’s agreement to reduce the Department of Finance and Deregulation’s departmental item by $200,000. This amount represents residual depreciation funding for Christmas Island Immigration Detention Centre that is no longer required, following the transfer of ownership of this asset to the Department of Immigration and Citizenship.
Schedule 4: Reduction in Appropriation Act (No. 2) 2007-2008
Item 1: The Minister for Innovation, Industry, Science and Research wrote to the Finance Minister on 16 June 2011 requesting a determination to reduce the Department of Innovation, Industry, Science and Research’s other departmental item (Equity Injections) by $2,580,000. This amount represents excess appropriation that was provided to the Global Opportunities program.
Schedule 5: Reduction in Appropriation Act (No. 1) 2008-2009
Item 1: The Secretary of the Department of Finance and Deregulation on 9 June 2011 sought the Finance Minister’s agreement to reduce the Department of Finance and Deregulation’s departmental item by $516,476. This amount relates to an amount no longer required associated with the Standard Business Reporting measure contained within the 2007-2008 Portfolio Additional Estimates.
Item 2: The Attorney-General wrote to the Finance Minister on 21 June 2011 requesting a determination to reduce the Federal Court of Australia’s departmental item by $348,000. The amount represents the return of unspent appropriation in relation to jury fees for criminal cartel jurisdiction.
Schedule 6: Reduction in Appropriation Act (No. 1) 2009-2010
Item 1: The Secretary of the Department of Finance and Deregulation on 9 June 2011 sought the Finance Minister’s agreement to reduce the Department of Finance and Deregulation’s departmental item by $538,000. This amount relates to a 2007-2008 Budget measure, where Finance received funding for a series of program reviews on a ‘no win / no loss’ basis. Finalisation of reviews undertaken in 2009-2010 has now been completed and this costing reflects the unused portion of the amount provided.
Item 2: The Attorney-General wrote to the Finance Minister on 21 June 2011 requesting a determination to reduce the Australian Federal Police’s departmental item by $1,185,946.60. This amount represents unspent funds in relation to the 2009-2010 Budget Measure ‘Global Terrorism-enhancing Australia’s commitment to Afghanistan’ which is subject to a ‘no win / no loss’ arrangement.
Schedule 7: Reduction in Appropriation Act (No. 2) 2009-2010
Item 1: The Attorney-General wrote to the Finance Minister on 21 June 2011 requesting a determination to reduce the Australian Federal Police’s other departmental item (Previous Years’ Outputs) by $1,000,761. This amount represents unspent funds in relation to the 2009-2010 Budget Measure ‘Global Terrorism-enhancing Australia’s commitment to Afghanistan’ which is subject to a ‘no win / no loss’ arrangement.
Schedule 8: Reduction in Appropriation Act (No. 1) 2010-2011
Item 1: The Attorney-General wrote to the Finance Minister on 21 June 2011 requesting a determination to reduce the Australian Customs and Border Protection Service’s departmental item by $81,888.54. This amount represents savings associated with increased efficiency in Commonwealth property management.
Item 2: The Attorney-General wrote to the Finance Minister on 21 June 2011 requesting a determination to reduce the Australian Security Intelligence Organisation’s departmental item by $23,552,000. This amount represents a reduction in line with the Australian Security Intelligence Organisation’s forward capital plan. Asset replacement has been revised across years to better align with the development of Australian Security Intelligence Organisation’s new building. The decrease in 2010-2011 is forecast to be spent in 2012-13.
Item 3: The Attorney-General wrote to the Finance Minister on 21 June 2011 requesting a determination to reduce the Australian Federal Police’s departmental item by $36,574. This amount represents savings associated with increased efficiency in Commonwealth property management.
Item 4: The Attorney-General wrote to the Finance Minister on 21 June 2011 requesting a determination to reduce the Family Court of Australia’s departmental item by $15,923,000. This amount represents excess appropriations provided to the Family Court of Australia for the restructure of the Federal Courts as announced in the 2009-2010 Budget. In May 2010, the Government announced its decision to retain the Federal Magistrates Court of Australia to hear general federal law matters. As the Federal Magistrates Court of Australia is to be retained, funding that was provided to the Family Court of Australia, along with funding in recognition of the realignment of the judicial officers and family consultant positions over recent years, was transferred back to the Federal Magistrates Court of Australia as part of the 2010-2011 additional estimates process.
Item 5: The Attorney-General wrote to the Finance Minister on 21 June 2011 requesting a determination to reduce the Federal Court of Australia’s departmental item by $1,707,000. This reduction amount is due to the transfer of appropriation to the Federal Magistrates Court from 1 January 2011, as in May 2010 the Government announced its decision to retain the Federal Magistrates Court to hear general federal law matters.
Item 6: The Attorney-General wrote to the Finance Minister on 21 June 2011 requesting a determination to reduce the Insolvency and Trustee Service Australia’s departmental item by $480,000. This amount represents the delay in implementing the Budget measure ‘Easing debt pressures on those in financial stress: improving services and accessibility to help avoid bankruptcy’. The Budget measure was originally to be implemented on 1 July 2010, however, due to the delay in the Parliament, it was implemented on 1 January 2011. The reduction in appropriation reflects salaries for staff that were to be hired if the measure was implemented in July 2010.
Item 7: The Attorney-General wrote to the Finance Minister on 21 June 2011 requesting a determination to reduce the Office of the Director of Public Prosecutions’ departmental item by $378,063. This amount represents savings associated with increased efficiency in Commonwealth property management.
Item 8: The Minister for Broadband, Communications and the Digital Economy wrote to the Finance Minister on 1 June 2011 requesting a determination to reduce the Department of Broadband, Communications and the Digital Economy’s departmental item by $6,785,000. This amount represents funds that were provided for two programs $6,099,000 for NBN related activities and $686,000, for Cyber Safety related activities are no longer required.
Item 9: The Minister for Defence wrote to the Finance Minister on 13 Jun 2011 requesting a determination to reduce the Defence Materiel Organisation’s departmental item by $52,325,000. This reduction amount is a result of the decrease in estimated workforce and operating expenses of the Defence Materiel Organisation’s for 2010-2011.
Item 10: The Minister for Families, Housing, Community Services and Indigenous Affairs wrote to the Finance Minister on 14 June 2011 requesting a determination to reduce the Department of Families, Housing and Community Services and Indigenous Affairs’ departmental item by $10,497. This amount represents savings associated with increased efficiency in Commonwealth property management.
Item 11: The Secretary of the Department of Finance and Deregulation on 9 June 2011 sought the Finance Minister’s agreement to reduce the Department of Finance and Deregulation’s departmental item by $16,293. This amount represents savings associated with increased efficiency in Commonwealth property management.
Item 12: The Minister for Infrastructure and Transport wrote to the Finance Minister on 15 June 2011 requesting a determination to reduce the Department of Infrastructure and Transport’s departmental item by $138,736.44. This amount represents savings associated with increased efficiency in Commonwealth property management.
Item 13: The Minister for Sustainability, Environment, Water, Population and Communities wrote to the Finance Minister on 7 June 2011 requesting a determination to reduce the Department of Sustainability, Environment, Water, Population and Communities’ departmental item by $164,187. This amount represents savings measures applied to the Department of Sustainability, Environment, Water, Population and Communities for the Natural Disaster Recovery and Rebuilding – Commission of Inquiry into the Queensland Floods of $81,000 and savings associated with increased efficiency in Commonwealth property management of $83,187.
Item 14: The Treasurer wrote to the Finance Minister on 9 June 2011 requesting a determination to reduce the Australian Taxation Office’s departmental item by $4,451,221.91. This amount represents savings due to: the reversal of the Stronger, fairer, simpler – resource exploration refundable tax offset measure announced in the 2010-2011 Budget (excess appropriation $534,000); the twelve month deferral of the 50 per cent discount for interest income measure (excess appropriation $2,897,000); a reduction in appropriation to the Australian Taxation Office as an offset to the A Tax Plan for Our Future – Tax Forum measure (excess appropriation $926,000); and savings associated with increased efficiency in Commonwealth property management (excess appropriation $94,221.91).
Schedule 9: Reduction in Appropriation Act (No. 1) 2010-2011
Item 1: The Minister for Families, Housing, Community Services and Indigenous Affairs wrote to the Finance Minister on 14 June 2011 requesting a determination to reduce the Aboriginal Hostels Limited’s CAC Act Body payment item by $4,179,000. This amount represents savings due to an administrative error identified as a result of a review undertaken by the Aboriginal Hostels Limited into the accounting treatment of its revenue streams.
Item 2: The Minister for Innovation, Industry, Science and Research wrote to the Finance Minister on 16 June 2011 requesting a determination to reduce the Commonwealth Scientific and Industrial Research Organisation’s CAC Act Body payment item by $470,000. This amount will be
re-appropriated to the Commonwealth Scientific and Industrial Research Organisation in 2011-2012 ($250,000) and 2012-2013 ($220,000) for the Northern Australia Sustainable Futures program and should therefore be reduced in the 2010-2011 financial year.
Schedule 10: Reduction in Appropriation Act (No. 2) 2010-2011
Item 1: The Minister for Families, Housing, Community Services and Indigenous Affairs wrote to the Finance Minister on 14 June 2011 requesting a determination to reduce the Department of Families, Housing, Community Services and Indigenous Affairs’ other departmental item (Equity Injections) by $1,638,000. This amount represents funds that are no longer required as a result of the reclassification of capital funding for the development of the National Find and Connect Service website to administered funding.
Item 2: The Treasurer wrote to the Finance Minister on 9 June 2011 requesting a determination to reduce the Australian Taxation Office’s other departmental item (Equity Injections) by $1,940,000. This amount represents savings due to the twelve month deferral of the commencement of the 50 per cent discount for interest income measure.
Schedule 11: Reduction in Appropriation Act (No. 3) 2010-2011
Item 1: The Attorney-General wrote to the Finance Minister on 21 June 2011 requesting a determination to reduce the Federal Magistrates Court of Australia’s departmental item by $3,257,000. This amount represents excess appropriation provided to the Federal Magistrates Court of Australia as part of the 2010-2011 additional estimates process.
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 agencies concerned were consulted in the preparation of this instrument.