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. 4 of 2008-2009) dated 18 August 2008.
The legislative authority under which the instrument is made
Subsection 10(2) of Appropriation Act (No. 3) 2003-2004 enables the Minister for Finance and Deregulation to make a Determination reducing a departmental item in a prior years Appropriation Act, listed in subsection 10(1) of Appropriation Act (No. 3) 2003-2004, for an entity, by the amount specified in the Determination, upon receipt of a written request from the Minister responsible for that entity.
The provision was 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 10(6) of Appropriation Act (No. 3) 2003-2004, a determination issued by the Finance Minister under subsection 10(2) 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 provision 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 Schedules to the instrument list the entities to which a determination applies.
Each entity’s reduction determination table is contained within an individual provision. Each 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, the Department of Immigration and Citizenship was consulted in the preparation of this instrument.
Disallowance
A Determination made under subsection 10(2) is a Legislative Instrument and is disallowable.
Overview
The Determination to Reduce Appropriations Upon Request (No. 4 of 2008-2009), dated 18 August 2008, was enacted under the authority of the Appropriation Act (No. 3) 2003-2004. This legislation was introduced to address the issue of excess departmental appropriations that may arise due to reclassification, efficiency savings, or the abolishment of government programs before the appropriation is expensed. The Act empowers the Minister for Finance and Deregulation to reduce a departmental item in a prior year's Appropriation Act upon receiving a written request from the Minister responsible for the entity in question. The policy objective of this Act is to ensure efficient use of government funds by eliminating unnecessary or excess appropriations. The instrument itself is a Legislative Instrument and is subject to disallowance.
Scope and Application
The instrument titled "Determination to Reduce Appropriations Upon Request (No. 4 of 2008-2009)" applies to specific entities within the Commonwealth of Australia, enabling the Minister for Finance and Deregulation to reduce their departmental appropriations as per a written request from the responsible Minister. This applies to entities listed in the schedules of the instrument, which are specified under the legislative authority of the Appropriation Act (No. 3) 2003-2004. The scope of the Act includes various scenarios such as reclassification of funds, efficiency savings leading to lower than expected program costs, and the abolition of government programs before their appropriations are expensed. Notably, the reductions cannot exceed the amount requested by the responsible Minister or the remaining balance of the appropriation item within the Consolidated Revenue Fund, as per subsection 10(6) of the Appropriation Act (No. 3) 2003-2004. The instrument itself is a Legislative Instrument and, as such, is subject to disallowance.
Key Provisions
The instrument in question, the "Determination to Reduce Appropriations Upon Request (No. 4 of 2008-2009) dated 18 August 2008," is made under subsection 10(2) of the Appropriation Act (No. 3) 2003-2004. This subsection allows the Minister for Finance and Deregulation to reduce a departmental item in a prior years Appropriation Act for a specific entity upon receiving a written request from the Minister responsible for that entity (subsection 10(2)). 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 (subsection 10(6)). This reduction is subject 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 Act imposes several obligations and requirements on the parties involved. The Minister for Finance and Deregulation is required to act upon a written request from the Minister responsible for the entity, as specified in Column 4 of the provision (subsection 10(2)). The Minister for Finance and Deregulation must ensure that any reduction in appropriation does not exceed the requested amount or the balance of the appropriation item in the Consolidated Revenue Fund (subsection 10(6)). The responsible Minister must provide a clear and detailed request outlining the specific appropriation item and the amount to be reduced. This request must be in writing and directed to the Minister for Finance and Deregulation.
There are no explicit offences, penalties, or consequences outlined in the instrument itself for breaching the provisions of the instrument. However, the instrument is a Legislative Instrument and, as such, is disallowable under the Legislative Instruments Act 2003. Disallowance would mean that the instrument would not have the force of law, and any reductions made under it would be considered invalid. In practical terms, failure to adhere to the requirements and obligations set out in the instrument could lead to disputes or challenges regarding the legitimacy of the appropriation reductions. The Department of Immigration and Citizenship was consulted in the preparation of this instrument, ensuring that the names of entities and portfolios were accurate as per the appropriation Acts.