Overview

The Determination to Reduce Appropriations Upon Request (No. 7 of 2009-2010) was enacted on 31 March 2010 under the authority of the Minister for Finance and Deregulation, as permitted by subsection 12(2) of the Appropriation Act (No. 4) 2003-2004. This instrument was developed in response to a written request from the Minister for Human Services, aiming to address the issue of unspent funding allocated to the Health Insurance Commission (HIC) for upgrading technical infrastructure. The primary objective of this legislation is to reduce the appropriation for equity injections within the HIC by $22,000,000, reflecting the unutilised funds from the previous business improvement program. This legislative instrument is a disallowable instrument, subject to review and potential disallowance by the Parliament, and it was prepared with consultation from Medicare Australia in compliance with the Legislative Instruments Act 2003.

Scope and Application

The Determination to Reduce Appropriations Upon Request (No. 7 of 2009-2010) is a legislative instrument issued under the authority of the Minister for Finance and Deregulation, pursuant to subsection 12(2) of the Appropriation Act (No. 4) 2003-2004. This determination specifically reduces the other departmental item (Equity Injections) for the Health Insurance Commission (HIC) by $22,000,000 in Appropriation Act (No. 2) 2003-2004. The decision follows a written request from the Minister for Human Services, and the reduction corresponds to unspent funding initially allocated to HIC for upgrading technical infrastructure under a business improvement program. The instrument, being a Legislative Instrument, is disallowable and was prepared with consultation from Medicare Australia, in accordance with the Legislative Instruments Act 2003.

Key Provisions

The main operative sections of this instrument, particularly Schedule 1, Item 1, reduce the 'other departmental item' for the Health Insurance Commission (HIC) in Appropriation Act (No. 2) 2003-2004 by $22,000,000. This adjustment targets the 'Equity Injections' previously allocated to HIC. The determination was made pursuant to the legislative authority provided by subsection 12(2) of the Appropriation Act (No. 4) 2003-2004, following a written request from the Minister for Human Services to the Finance Minister. The instrument is structured to list the affected agency, the relevant appropriation Act and item, the legislative authority, the responsible Minister's request, and the amount by which the appropriation is reduced. The Act imposes specific obligations on the parties involved. The Minister for Finance and Deregulation is required to make the determination in accordance with a written request from the responsible Minister for the entity. This process ensures that any reduction in appropriations is formally requested and documented. Furthermore, the instrument must be prepared in compliance with the Legislative Instruments Act 2003, which includes consultation with relevant entities such as Medicare Australia. The Act also mandates that the determination be a Legislative Instrument and, as such, is subject to disallowance. The instrument outlines potential consequences for non-compliance with its provisions. While the specific offences, penalties, or consequences for breach are not detailed within the text, the nature of the legislative instrument and its disallowable status implies that any breach could lead to the instrument being declared invalid. This would have significant implications for the affected appropriations and potentially for the operations of the HIC and related entities. The disallowance process would be governed by the relevant legislative and procedural frameworks in place at the time of any such breach.