Overview

The Determination to Reduce Appropriations Upon Request (No. 6 of 2010-2011), made under the authority of the Minister for Finance and Deregulation on 1 February 2011, aims to address a surplus in the appropriation allocated to the Australian Securities and Investments Commission (ASIC). The instrument was enacted in accordance with subsection 9(1) of the Appropriation Act (No. 1) 2005-2006, which allows for the reduction of a departmental item upon a written request from the relevant Minister. This legislation was prompted by a request from the Parliamentary Secretary to the Treasurer, communicated to the Minister for Finance and Deregulation on 22 December 2010, to reduce ASIC's appropriation by $5,000,000, as the funds allocated for a dedicated taskforce investigating the collapse of HIH Insurance Group were no longer required following the completion of the investigation. The purpose of this legislative instrument is to ensure efficient allocation of public funds by adjusting the appropriation to reflect the current requirements of ASIC.

Scope and Application

The Determination to Reduce Appropriations Upon Request (No. 6 of 2010-2011) applies to the Australian Securities and Investments Commission (ASIC), a statutory authority responsible for enforcing Australian securities and financial markets laws. This legislation reduces a departmental appropriation for ASIC as determined by the Minister for Finance and Deregulation, following a request from the responsible Minister. The reduction in question pertains to an appropriation previously allocated for a dedicated taskforce investigating matters related to the collapse of the HIH Insurance Group. The determination is made pursuant to the authority granted under Subsection 9(1) of the Appropriation Act (No. 1) 2005-2006, with the objective of reallocating surplus funds no longer needed for the completed investigation. The instrument specifies a reduction of $5,000,000 from the appropriation item, as listed in Schedule 1 of the instrument. ASIC was consulted in the preparation of this instrument in accordance with the Legislative Instruments Act 2003. The application of this legislation is limited to the specific appropriation item identified in the Appropriation Act (No. 1) 2005-2006, and does not extend to other departments or agencies, or to any broader policy or operational changes within ASIC.

Key Provisions

The primary operative sections of the Determination to Reduce Appropriations Upon Request (No. 6 of 2010-2011) are found within Schedule 1. This schedule specifies the reduction of the departmental item for the Australian Securities and Investments Commission (ASIC) by $5,000,000 as per Appropriation Act (No. 1) 2005-2006. The determination follows a written request from the Minister responsible for ASIC, in this case, the Parliamentary Secretary to the Treasurer. This provision allows the Minister for Finance and Deregulation to adjust the appropriation amounts based on the needs of the agency and the advice from the responsible Minister. The Act imposes specific obligations on the parties involved. Firstly, the Minister for Finance and Deregulation must review and consider any requests from the relevant Minister responsible for an agency to reduce a departmental appropriation. Upon receiving a request, the Minister must assess the necessity and validity of the reduction and then proceed to make a determination accordingly. The Act mandates that any such determination must be made in writing and must specify the amount of the reduction and the appropriation item affected. Additionally, the Australian Securities and Investments Commission must be consulted during the preparation of the determination to ensure that the reduction is appropriate and necessary. The Determination also outlines the potential consequences for any breaches or non-compliance with the provisions set forth in the Act. While specific offences and penalties are not detailed in the explanatory statement, it is understood that any improper use of the appropriation funds or failure to follow the legislative process could lead to legal consequences. Generally, breaches of appropriation acts can result in civil or criminal penalties, including fines and imprisonment, depending on the severity of the breach. The maximum penalties would be determined based on the specific circumstances of the breach and the relevant legislation governing the appropriation process. It is important for the parties involved to adhere to the requirements of the Act to avoid any legal repercussions.