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. 3 of 2011-2012) |
Date instrument was made | 5 August 2011 |
The legislative authority under which the instrument is made | Subsection 10(2) of Appropriation Act (No. 1) 2010-2011 enables the Minister for Finance and Deregulation to make a written determination reducing 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 subsection 10(2) are legislative instruments and are disallowable. |
Purpose and effect of the instrument | The purpose of the instrument is to reduce the appropriation item that the Acting Minister for Health and Ageing has advised the Minister for Finance and Deregulation is surplus to the requirements of the Department of Health and Ageing (Health). Schedule 1 of the Instrument determines that the departmental item for Health in Appropriation Act (No. 1) 2010-2011 be reduced by $439,000. |
Background | The Acting Minister for Health and Ageing wrote to the Minister for Finance and Deregulation on 22 July 2011 requesting a determination to reduce Health’s departmental item in Appropriation Act (No. 1) 2010-2011. The reduction in the departmental appropriation represents funding provided to Health in the 2010-11 Budget for the Dental Internship measure, however the decision was subsequently reversed and a new package provided for in the 2011-12 Budget. |
Notes on the Instrument | The Schedule to the Instrument contains 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 Department of Heath and Ageing was consulted in the preparation of this Instrument. |
Overview
The Determination to Reduce Appropriations Upon Request (No. 3 of 2011-2012), issued under the authority of the Minister for Finance and Deregulation on 5 August 2011, aims to address a surplus in the Department of Health and Ageing’s appropriation. Enacted pursuant to Subsection 10(2) of the Appropriation Act (No. 1) 2010-2011, this legislative instrument allows for the reduction of departmental items following a written request from the responsible Minister. The purpose of this particular instrument is to reduce Health’s departmental appropriation by $439,000, which was originally allocated for the Dental Internship measure but subsequently deemed surplus due to a policy reversal. The policy objective here is to ensure efficient allocation of public funds by eliminating unnecessary expenditures and redirecting resources to areas of greater need. This instrument exemplifies the legislative framework's flexibility in responding to changing budgetary requirements.
Scope and Application
The Determination to Reduce Appropriations Upon Request (No. 3 of 2011-2012) applies specifically to the Department of Health and Ageing, as requested by the Acting Minister for Health and Ageing, under the authority granted by the Appropriation Act (No. 1) 2010-2011. This legislation pertains to a particular appropriation item that was deemed surplus following a budgetary decision reversal. The instrument reduces the departmental item for Health by $439,000, reflecting funds initially allocated for the Dental Internship measure in the 2010-11 Budget, which were subsequently reallocated for the 2011-12 Budget. The jurisdictional reach of this Act is limited to the Commonwealth level, affecting only the specified department within the Australian federal government. No exclusions or exemptions are explicitly stated in the document, and the application of the Act does not extend beyond the parameters set forth in the Schedule, which lists the affected agency, appropriation act, and the specific reduction amount. The Act itself does not create new law but operates under the legislative authority granted by the Appropriation Act, with the reduction being a legislative instrument that is disallowable.
Key Provisions
The primary operative section of this legislation is subsection 10(2) of the Appropriation Act (No. 1) 2010-2011, which empowers the Minister for Finance and Deregulation to issue a written determination reducing a departmental item for an agency by a specified amount upon receiving a written request from the Minister responsible for that agency. This particular instrument, the Determination to Reduce Appropriations Upon Request (No. 3 of 2011-2012), specifically addresses a surplus appropriation for the Department of Health and Ageing (Health). As per Schedule 1 of this instrument, the departmental item for Health in the Appropriation Act (No. 1) 2010-2011 is reduced by $439,000.
The Act imposes several obligations and requirements on the parties involved. The Minister for Finance and Deregulation must act upon a written request from the responsible Minister, in this case, the Acting Minister for Health and Ageing. The Acting Minister for Health and Ageing is required to submit a formal request detailing the need for the appropriation reduction. Additionally, the Department of Health and Ageing must be consulted in the preparation of such instruments, ensuring that the decision to reduce the appropriation is both informed and consensual.
There are no explicit offences, penalties, or civil/criminal consequences detailed within this particular instrument for breaches of its provisions. However, the legislative nature of the instrument means that it is subject to disallowance, which provides a mechanism for parliamentary scrutiny and potential rejection of the determination. This serves as a check on the exercise of the Minister's powers and ensures accountability in the use of public funds. The potential political and reputational consequences for the government if a disallowance were to occur could also be significant, although these are not explicitly stated in the text.