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 2011-2012) |
Date instrument was made | 6 September 2011 |
The legislative authority under which the instrument is made | Subsection 13(2) of Appropriation Act (No. 2) 2009-2010 enables the Minister for Finance and Deregulation (Finance Minister) to make a determination reducing an other departmental item (Equity Injections) for an agency by the amount specified in the Determination, upon receipt of a written request from the Minister responsible for that agency. Subsection 10(2) of Appropriation Act (No. 1) 2010-2011 enables the Finance Minister to make a determination reducing the 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 this subsection are legislative instruments and are disallowable. |
Purpose and effect of the instrument | The purpose of the instrument is to reduce appropriation items that the Minister for Human Services has advised the Finance Minister are surplus to the requirements of the Department of Human Services (DHS). Schedule 1 determines that the other departmental item (Equity Injections) for the former Medicare Australia (now integrated into DHS) in Appropriation Act (No. 2) 2009-2010 be reduced by $93,000. Schedule 2 determines that the departmental item for the former Medicare Australia (now integrated into DHS) in Appropriation Act (No. 1) 2010-2011 be reduced by $433,000. |
Background | The Minister for Human Services wrote to the Finance Minister on 17 August 2011 requesting a determination to reduce appropriation items provided to Medicare Australia in 2009-10 and 2010-11. On 1 July 2011 the Human Services Legislation Amendment Act 2011 integrated the services of Medicare Australia, Centrelink and CRS Australia into DHS. The transitional provisions in that Act ensured that any of Medicare Australia’s annual appropriations from 2010-11 or earlier shifted to DHS on 1 July 2011. The reduction in the departmental appropriation represents funds appropriated for the measure ‘Trialling MBS eligibility image only x-ray services’ which was announced in the 2009-10 Budget as part of the Diagnostic Imaging – reforms measure. The funds are no longer required because, as part of the 2011-12 Budget, the Government decided not to proceed with the measure. |
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, DHS was consulted in the preparation of this Instrument. |
Overview
The Determination to Reduce Appropriations Upon Request (No. 5 of 2011-2012) was enacted on 6 September 2011 under the authority of the Minister for Finance and Deregulation. This legislative instrument was created in response to a request from the Minister for Human Services to adjust certain appropriations previously allocated to the former Medicare Australia, now integrated into the Department of Human Services (DHS). The objective of this determination is to address the surplus funding identified by the Minister for Human Services for two financial years, 2009-10 and 2010-11, as a result of a government decision to not proceed with the 'Trialling MBS eligibility image only x-ray services' measure. This instrument reduces specific appropriation items by $93,000 and $433,000 respectively, ensuring that the financial resources are appropriately aligned with current requirements and strategic priorities.
Scope and Application
The Determination to Reduce Appropriations Upon Request (No. 5 of 2011-2012) applies to the Department of Human Services (DHS) and specifically addresses the reduction of appropriations previously allocated to the now-integrated Medicare Australia. This instrument was created under the authority of the Appropriation Act (No. 2) 2009-2010 and Appropriation Act (No. 1) 2010-2011, enabling the Minister for Finance and Deregulation to adjust appropriations upon written request from the Minister responsible for DHS. The instrument targets the reduction of specific other departmental and departmental items for the former Medicare Australia, now integrated into DHS, by $93,000 and $433,000 respectively, as requested by the Minister for Human Services on 17 August 2011. The changes reflect the government's decision not to proceed with the 'Trialling MBS eligibility image only x-ray services' measure, announced in the 2009-10 Budget, which is now surplus to DHS's requirements. This legislative instrument is disallowable and was prepared in consultation with DHS as required by the Legislative Instruments Act 2003.
Key Provisions
The main operative sections of this Determination (F2011L01899) are outlined in Schedules 1 and 2. These schedules specify the reductions to the appropriation items for the Department of Human Services (DHS) that were previously allocated to Medicare Australia. Specifically, Schedule 1 reduces the other departmental item (Equity Injections) in the Appropriation Act (No. 2) 2009-2010 by $93,000, while Schedule 2 reduces the departmental item in the Appropriation Act (No. 1) 2010-2011 by $433,000. These reductions were made following a written request from the Minister for Human Services, in line with the legislative authority provided by the Appropriation Act (No. 2) 2009-2010 and Appropriation Act (No. 1) 2010-2011.
The Act imposes specific obligations and requirements on both the Minister for Finance and Deregulation and the Minister for Human Services. The Minister for Finance and Deregulation is obligated to make the determination upon receiving a written request from the Minister for Human Services. This process is formalised under the legislative authority of the relevant Appropriation Acts. The Minister for Human Services, on the other hand, must identify and communicate the surplus appropriation items to the Minister for Finance and Deregulation. This communication must be in writing and specify the exact amounts to be reduced.
In terms of consequences for breach, the legislative instruments made under this determination are disallowable, which means they can be annulled by either House of Parliament. While the explanatory statement does not specify penalties for non-compliance with the determination itself, any failure to adhere to the legislative process could potentially result in legal or administrative repercussions. The Act does not explicitly state maximum penalties for breaches, but the disallowance mechanism serves as a significant deterrent against non-compliance.