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. 5 of 2010-2011) |
Date instrument was made | 20 January 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. 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 Minister for Human Services has advised the Minister for Finance and Deregulation is surplus to the requirements of the Department of Human Services (DHS). Schedule 1 of the Instrument determines that the departmental item for the Department of Human Services in Appropriation Act (No. 1) 2009‑2010 be reduced by $8,740,098.38. |
Background | The Minister for Human Services wrote to the Minister for Finance and Deregulation on 3 December 2010 requesting a determination to reduce DHS’s departmental item in Appropriation Act (No. 1) 2009-2010. The reduction in the departmental appropriation represents an unspent amount relating to the Compensation for Detriment caused by Defective Administration – Delayed Use of Taxable Income for Child Support Assessments measure and an agreement with the Government to offset additional administered appropriation provided for the Income Management Card. |
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 Human Services was consulted in the preparation of this Instrument. |
Overview
The Determination to Reduce Appropriations Upon Request (No. 5 of 2010-2011), made on 20 January 2011 under the authority of the Minister for Finance and Deregulation, aims to address the issue of surplus appropriations within the Department of Human Services (DHS). Enacted in accordance with subsection 10(2) of the Appropriation Act (No. 1) 2009-2010, this legislative instrument allows for the reduction of a departmental item by a specified amount upon a written request from the relevant Minister. The primary objective of this determination is to reduce the DHS departmental item by $8,740,098.38, reflecting an unspent allocation from the Compensation for Detriment caused by Defective Administration – Delayed Use of Taxable Income for Child Support Assessments measure, as well as an agreement to offset additional administered appropriation provided for the Income Management Card. This action is designed to ensure fiscal efficiency and alignment with the operational needs of the DHS.
Scope and Application
The Determination to Reduce Appropriations Upon Request (No. 5 of 2010-2011) applies specifically to the Department of Human Services (DHS) as directed by the Minister for Human Services, who requested a reduction in the departmental appropriation. This determination is governed under the legislative authority of Subsection 10(2) of the Appropriation Act (No. 1) 2009-2010, which empowers the Minister for Finance and Deregulation to adjust departmental items upon a written request from the responsible Minister. The reduction pertains to an unspent appropriation related to the Compensation for Detriment caused by Defective Administration – Delayed Use of Taxable Income for Child Support Assessments measure and an agreement to offset additional administered appropriation for the Income Management Card. This legislative instrument affects only the Commonwealth jurisdiction and does not extend to state or territory levels. The reduction in appropriation is precisely $8,740,098.38, as detailed in Schedule 1 of the instrument. Subordinate instruments may further define the application or modify the details of this determination, though the primary instrument itself does not specify any exclusions, exemptions, or thresholds beyond the outlined reduction.
Key Provisions
The main operative section of this legislation is Subsection 10(2) of the Appropriation Act (No. 1) 2009-2010, which allows the Minister for Finance and Deregulation to reduce a departmental item for an agency by a specified amount upon receiving a written request from the responsible Minister. The Determination itself, detailed in Schedule 1, specifies that the departmental item for the Department of Human Services (DHS) is to be reduced by $8,740,098.38.
The Act imposes certain obligations and requirements on the parties involved. Firstly, the Minister for Human Services must submit a written request to the Minister for Finance and Deregulation, clearly stating that a reduction in the appropriation is necessary. This request must be based on the assertion that the funds are surplus to the requirements of DHS. Secondly, the Minister for Finance and Deregulation is required to process this request and issue the Determination, which legally reduces the appropriation by the specified amount. Finally, the Department of Human Services, as the affected entity, must cooperate with the consultation process and ensure the accuracy of the surplus claim.
In terms of consequences for non-compliance or breach, the legislation does not explicitly outline criminal or civil penalties for failing to adhere to the requirements. However, the nature of the legislative instrument being disallowable means that any Determination made can be subject to review and potential disallowance by Parliament. This provides a significant check on the authority exercised under this legislation, ensuring that any reductions in appropriations are legitimate and justified. The primary consequence of issuing an invalid or improper Determination would be its disallowance, which could potentially lead to the necessity of reallocating funds or seeking additional appropriations in subsequent budgetary cycles.