The instrument to which this explanatory statement relates

Determination to Reduce Appropriations Upon Request (No. 7 of 2009-2010)

Date instrument was made

31 March 2010

The legislative authority under which the instrument is made

Subsection 12(2) of Appropriation Act (No. 4) 2003-2004 enables the Minister for Finance and Deregulation (Finance Minister) to make a Determination reducing administered assets and liabilities items and other departmental items.

A determination made under subsection 12(2) must be in accordance with a written request made to the Finance Minister by the responsible Minister for the entity.

A determination made under subsection 12(2) is a Legislative Instrument and is disallowable.

Purpose and effect of the instrument

Schedule 1, Item 1 of the Instrument determines that the other departmental item (Equity Injections) for the Health Insurance Commission (HIC) in Appropriation Act (No. 2) 2003-2004 be reduced by $22,000,000.

The effect of this Instrument is to reduce the other departmental item (Equity Injections) for HIC in Schedule 1 of Appropriation Act (No. 2) 2003-2004 by the amount of $22,000,000.

Background

The Minister for Human Services wrote to the Finance Minister on 17 March 2010 requesting a determination to reduce HIC’s departmental item under Appropriation Act (No. 2) 2003-2004.

The amount of the reduction is the unspent funding provided to the former HIC to upgrade technical infrastructure under a business improvement program.

Notes on the Instrument

Schedule 1 to the Instrument contains a table listing the affected agency in column 1, the appropriation Act and appropriation item in column 2, the legislative authority in column 3, which through the request by the responsible Minister in column 4, is reduced by the amount in column 5.

In accordance with the Legislative Instruments Act 2003, Medicare Australia was consulted in the preparation of this Instrument.