Overview
The Determination to Reduce Appropriations Upon Request (No.3 of 2009-2010) was issued on 22 January 2010 by the Minister for Finance and Deregulation under the legislative authority provided by subsection 13(2) of the Appropriation Act (No. 2) 2009-2010. This instrument was enacted in response to a written request from the Minister for Defence to reduce the Department of Defence's Equity Injections appropriation item. The primary objective of this legislation is to ensure that other departmental items, which do not automatically lapse at the end of the financial year, are reduced to reflect actual requirements and savings. Specifically, this determination reduces the Equity Injections appropriation item for the Department of Defence by $1,592,535,000, a reduction attributable to various savings such as movements in foreign exchange rates, reclassification of appropriations, and direct appropriations to the Defence Materiel Organisation for work performed on Defence's behalf. This reduction aligns with the policy objective of optimising the use of appropriated funds and ensuring fiscal responsibility within government departments.
Scope and Application
The Determination to Reduce Appropriations Upon Request (No.3 of 2009-2010) pertains to the Commonwealth government, specifically affecting the Department of Defence. This legislative instrument was issued under the authority granted by Subsection 13(2) of the Appropriation Act (No. 2) 2009-2010, allowing the Minister for Finance and Deregulation to adjust appropriations. This authority requires a formal written request from the relevant Minister, in this case, the Minister for Defence, who requested a reduction in the Equity Injections appropriation item for the Department of Defence. The instrument reduces the specified appropriation by $1,592,535,000, accounting for various savings such as foreign exchange movements, reclassification of appropriation, and direct appropriations to the Defence Materiel Organisation. The effect of this instrument is to align the appropriation with the department's current requirements, ensuring fiscal efficiency and compliance with budgetary constraints. The instrument does not apply to any other entities or departments outside the scope of this specific request and determination.
Key Provisions
The Determination to Reduce Appropriations Upon Request (No.3 of 2009-2010) (the Determination) is made under the authority of Subsection 13(2) of the Appropriation Act (No. 2) 2009-2010 and involves a request from the Minister for Defence to the Minister for Finance and Deregulation. Section 13(2) of the Act allows the Finance Minister to reduce administered assets and liabilities items and other departmental items, while Section 13(1) requires the determination to align with a written request from the Minister responsible for the agency. In this instance, the Determination reduces the equity injections appropriation item for the Department of Defence by $1,592,535,000. The purpose of this instrument is to address excess funds that are no longer required by the Department of Defence, allowing for reallocation or other financial adjustments.
The Determination imposes specific obligations on the parties involved, primarily the Minister for Finance and Deregulation and the Minister for Defence. The Finance Minister is required to act in accordance with the request made by the Defence Minister and to ensure that the reduction of the appropriation item aligns with the statutory requirements outlined in the Appropriation Act (No. 2) 2009-2010. The Defence Minister, in turn, is responsible for making the written request and ensuring that the proposed reduction is justified and aligns with the agency’s financial needs. Additionally, the Department of Defence must be consulted in the preparation of the instrument, as mandated by the Legislative Instruments Act 2003.
The Determination itself does not explicitly outline offences, penalties, or consequences for breaches. However, the underlying legislation, the Appropriation Act (No. 2) 2009-2010, governs the financial management and appropriation processes within Australian government agencies. Any failure to comply with the requirements of this Act could potentially result in legal consequences, including civil or criminal penalties, depending on the nature and severity of the breach. The specific penalties would be determined in accordance with the relevant laws and regulations governing public finance and administrative procedures in Australia.