Overview

The Determination to Reduce Appropriations Upon Request (No. 4 of 2011-2012), issued on 25 August 2011 by the Minister for Finance and Deregulation, was enacted to address a surplus in the appropriation for the Department of Sustainability, Environment, Water, Population and Communities (DSEWPaC) as identified by the Minister for Sustainability, Environment, Water, Population and Communities. This legislation was made under the authority of subsection 10(2) of the Appropriation Act (No. 1) 2010-2011, which allows the Minister for Finance and Deregulation to reduce a departmental appropriation upon receiving a written request from the relevant Minister. The purpose of this determination is to reduce the departmental item for the former Department of the Environment, Water, Heritage and the Arts, now DSEWPaC, by $496,000 due to a recalculation of the interest equivalency payment related to the National Portrait Gallery Special Account. The reduction reflects the adjustment needed following the transfer of Arts and Culture functions from the portfolio’s responsibilities.

Scope and Application

The Determination to Reduce Appropriations Upon Request (No. 4 of 2011-2012) applies to the Department of Sustainability, Environment, Water, Population and Communities (DSEWPaC) following its renaming from the Department of the Environment, Water, Heritage and the Arts (DEWHA) as per the Administrative Arrangements Order of 14 September 2010. The instrument was made under the authority of the Appropriation Act (No. 1) 2010-2011, specifically subsection 10(2), which empowers the Minister for Finance and Deregulation to reduce a departmental item for an agency upon receipt of a written request from the Minister responsible for that agency. This reduction is legislative and can be disallowed. The primary effect of this instrument is to decrease the appropriation for DSEWPaC by $496,000, as requested by the Minister for Sustainability, Environment, Water, Population and Communities on 15 August 2011, and approved on 25 August 2011. This adjustment stems from a recalculation of the interest equivalency payment applied to the balance in the National Portrait Gallery Special Account following a re-alignment of responsibilities within the department. The instrument does not specify any exclusions or exemptions and extends only to the specific appropriation item mentioned, without any broader jurisdictional reach beyond the Commonwealth.

Key Provisions

The main operative sections of the Determination to Reduce Appropriations Upon Request (No. 4 of 2011-2012) (the "Instrument") are contained in Schedule 1, which specifies the amount by which the appropriation for the Department of Sustainability, Environment, Water, Population and Communities (DSEWPaC) is to be reduced. Pursuant to subsection 10(2) of the Appropriation Act (No. 1) 2010-2011, the Instrument reduces the departmental item for the former Department of the Environment, Water, Heritage and the Arts (DEWHA) by $496,000. This reduction was requested by the Minister for Sustainability, Environment, Water, Population and Communities and is the result of a recalculation of the interest equivalency payment applied to the balance in the National Portrait Gallery Special Account when the Arts and Culture functions were within the portfolio’s responsibilities. The Instrument imposes certain obligations on the relevant parties. The Minister for Finance and Deregulation is required to make the written determination upon receipt of a written request from the Minister responsible for the agency. Additionally, the Department of Sustainability, Environment, Water, Population and Communities was consulted in the preparation of this Instrument in accordance with the Legislative Instruments Act 2003. The Minister for Sustainability, Environment, Water, Population and Communities must provide a written request to the Minister for Finance and Deregulation to reduce the appropriation for the agency. There are no specific offences, penalties, or consequences outlined in the Instrument itself for breaching its provisions. However, as a legislative instrument, the Determination is disallowable. Disallowance can occur if either House of Parliament resolves to disallow the instrument within 15 sitting days after it is tabled. If disallowed, the instrument ceases to have effect on the day after the resolution is passed or certified. The maximum penalty for non-compliance with the Instrument, if any, would be determined by the broader legal context in which the Instrument operates.