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. 4 of 2010-2011) |
Date instrument was made | 1 February 2011 |
The legislative authority under which the instrument is made | Subsection 10(2) of Appropriation Act (No. 1) 2009‑2010 enables the Minister for Finance and Deregulation to make a 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. Subsection 11(1) of Appropriation Act (No. 4) 2004‑2005 enables the Minister for Finance and Deregulation to make a determination reducing an administered assets and liabilities 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) and subsection 11(1) are legislative instruments and are disallowable. |
Purpose and effect of the instrument | The purpose of the instrument is to reduce appropriation items that the Attorney-General has advised the Minister for Finance and Deregulation are surplus to the requirements of the Attorney-General’s Department. Schedule 1 of the Instrument determines that the departmental item for the Attorney-General’s Department in Appropriation Act (No. 1) 2009‑2010 be reduced by $805,257.55. Schedule 2 of the Instrument determines that the administered assets and liabilities item for the Attorney-General’s Department in Appropriation Act (No. 4) 2004‑2005 be reduced by $20,200,000. |
Background | The Attorney-General wrote to the Minister for Finance and Deregulation on 23 December 2010 requesting a determination to reduce AGD’s departmental item in Appropriation Act (No. 1) 2009-2010 and the AGD’s administered assets and liabilities item in Appropriation Act (No. 4) 2004-2005. The reduction in the departmental appropriation represents a shortfall in administered revenue in 2009‑10 relating to the National Classification Scheme. A cost recovery arrangement between the Department of Finance and Deregulation and AGD requires revenue shortfalls to be offset by a reduction in related AGD departmental appropriation. |
Background (continued) | The surplus administered assets and liabilities appropriation of $20,200,000 was provided for the now defunct Christmas Island Space Station project. Cabinet agreed that the surplus appropriation be deducted from AGD’s 2004-05 capital appropriation. |
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 Attorney-General’s Department was consulted in the preparation of this Instrument. |
Overview
The Determination to Reduce Appropriations Upon Request (No. 4 of 2010-2011) was enacted in 2011, addressing a surplus in appropriations for the Attorney-General's Department (AGD). This legislative instrument was created in response to a request from the Minister for Finance and Deregulation, pursuant to the authority granted under the Appropriation Act (No. 1) 2009-2010 and Appropriation Act (No. 4) 2004-2005. The key objective of this determination was to adjust appropriations to reflect a shortfall in administered revenue from the National Classification Scheme, as well as to account for the surplus funds allocated to the defunct Christmas Island Space Station project. The instrument effectively reduces the departmental item by $805,257.55 and the administered assets and liabilities item by $20,200,000, as requested by the AGD and approved by the relevant Ministers. This determination aims to ensure accurate financial management and accountability within the AGD, aligning departmental appropriations with actual requirements.
Scope and Application
The Determination to Reduce Appropriations Upon Request (No. 4 of 2010-2011) pertains to the Attorney-General’s Department and applies to specific appropriations within the Appropriation Act (No. 1) 2009-2010 and the Appropriation Act (No. 4) 2004-2005. This instrument, enacted by the Minister for Finance and Deregulation, serves to reduce the departmental and administered assets and liabilities items of the Attorney-General’s Department, following a written request from the Minister responsible for the department. The reduction in appropriations addresses a surplus in administered revenue for the National Classification Scheme and the surplus appropriation for the now defunct Christmas Island Space Station project. The instrument is applicable at the Commonwealth level and is subject to disallowance as a legislative instrument. The scope of the Act is limited to the specific appropriation items identified in the schedules, with no broader application to other entities, industries, or transactions. The instrument reflects the precise adjustments requested by the Attorney-General and approved by Cabinet, thereby reducing the appropriation items by the specified amounts.
Key Provisions
The main operative sections of the Determination to Reduce Appropriations Upon Request (No. 4 of 2010-2011) are found in Schedule 1 and Schedule 2, which respectively reduce the departmental item for the Attorney-General’s Department in Appropriation Act (No. 1) 2009-2010 by $805,257.55 and the administered assets and liabilities item for the Attorney-General’s Department in Appropriation Act (No. 4) 2004-2005 by $20,200,000. This was made pursuant to the authority granted under subsection 10(2) and subsection 11(1) of the Appropriation Acts, respectively, at the request of the Minister responsible for the Attorney-General’s Department.
The obligations and requirements imposed by this Act on the relevant parties primarily involve the submission of a written request from the Minister responsible for the Attorney-General’s Department to the Minister for Finance and Deregulation. This request must detail the specific appropriation items that are deemed surplus to the needs of the Attorney-General’s Department. Additionally, the determinations made under this Act are legislative instruments and thus are subject to disallowance, which means that Parliament has the power to review and potentially annul these determinations.
In terms of the consequences for breach, the Act does not explicitly detail specific offences, penalties, or consequences for non-compliance with the determinations. However, the disallowance provision under the Legislative Instruments Act 2003 implies that if the determinations are found to be improper or exceed the legislative authority, they can be annulled by Parliament. This serves as a significant deterrent against improper reductions in appropriations, ensuring that any reductions are made within the bounds of the law and upon legitimate grounds.