Overview

The Determination to Reduce Appropriations Upon Request (No. 6 of 2011-2012) was enacted on 28 November 2011 by the Minister for Finance and Deregulation under the legislative authority provided by Subsection 10(2) of the Appropriation Act (No. 1) 2010-2011. This instrument was introduced to address a surplus in the appropriation item for the Australian Trade Commission (Austrade). The Minister for Trade had requested a reduction in Austrade's departmental item due to savings from no win/no loss arrangements in Foreign Exchange, attributable to the stronger Australian dollar in the 2010-2011 period, and the unspent appropriation from the ICT BAU Reinvestment Fund as the scope of Austrade’s telecommunication project was smaller than initially planned. The policy objective was to reflect the actual financial requirements of Austrade accurately within the budgetary framework. This legislative instrument, being a disallowable legislative instrument, was prepared with consultation from Austrade in accordance with the Legislative Instruments Act 2003. The Schedule of the instrument specifies the agency, appropriation act, appropriation item, and the amount reduced as a result of the Minister for Trade's request.

Scope and Application

The Determination to Reduce Appropriations Upon Request (No. 6 of 2011-2012) is a legislative instrument made under the authority of the Minister for Finance and Deregulation, pursuant to subsection 10(2) of the Appropriation Act (No. 1) 2010-2011. This instrument specifically targets the Australian Trade Commission (Austrade) by reducing its departmental appropriation. The determination was made in response to a written request from the Minister for Trade, who identified that certain funds were surplus to Austrade's requirements for the 2010-2011 financial year. The reduction includes savings from no win/no loss foreign exchange arrangements due to a stronger Australian dollar, and unspent funds from the ICT BAU Reinvestment Fund that are no longer required following adjustments to Austrade's telecommunication project scope. This legislative instrument applies to the Australian Trade Commission and its appropriation item within the Appropriation Act (No. 1) 2010-2011, with the reduction amounting to $10,694,223.56. The instrument is disallowable and was prepared in consultation with Austrade as required by the Legislative Instruments Act 2003.

Key Provisions

The Determination to Reduce Appropriations Upon Request (No. 6 of 2011-2012) is a legislative instrument that was made under subsection 10(2) of the Appropriation Act (No. 1) 2010-2011. This subsection enables the Minister for Finance and Deregulation to reduce the departmental item for an agency by a specified amount upon receipt of a written request from the Minister responsible for that agency. In this case, the instrument reduces the departmental item for the Australian Trade Commission (Austrade) by $10,694,223.56. The purpose of this reduction is to reflect savings from the no win/no loss arrangements relating to Foreign Exchange and unspent appropriation from the ICT BAU Reinvestment Fund. This instrument is disallowable, meaning it can be annulled by a resolution of either House of the Parliament. Under the provisions of the Determination, the Minister for Trade requested a reduction in Austrade's departmental item. This request was made in writing on 1 November 2011. The reduction is broken down into two components: $10,526,331.56 in savings from the no win/no loss arrangements relating to Foreign Exchange due to the stronger Australian dollar in 2010-2011 and $167,892.00 in unspent appropriation from the ICT BAU Reinvestment Fund, which is no longer required because the scope for Austrade’s telecommunication project is smaller than initially envisaged. The determination ensures that the appropriation reflects the actual requirements and expenditures of the agency, thus providing a more accurate financial representation. The Determination imposes certain obligations and requirements on the relevant parties. The Minister for Trade is required to make a formal request to the Minister for Finance and Deregulation if there is a surplus appropriation that needs to be adjusted. The Finance Minister, upon receiving such a request, is obligated to review the request and, if appropriate, make a determination to reduce the appropriation as specified. Additionally, Austrade, as the affected agency, is required to cooperate in the preparation of this instrument and ensure that the reduced appropriation aligns with its actual needs. The determination must also comply with the Legislative Instruments Act 2003, which mandates that affected agencies be consulted during the preparation of the instrument. There are no explicit offences, penalties, or civil/criminal consequences mentioned for breaching this determination. However, the disallowance of the instrument by a resolution of either House of the Parliament serves as a significant consequence if it is found to be improper or invalid. The disallowance process ensures that the instrument remains within the bounds of the legislative authority and adheres to the principles of good governance and accountability. The absence of specific penalties for non-compliance in the text suggests that the primary focus is on ensuring that the appropriation adjustments are accurate and reflect the true financial requirements of Austrade.