Determination to Reduce Departmental and Administered Appropriations in Previous Appropriation Acts (No. 2 of 2009-2010)

Overview

The Determination to Reduce Departmental and Administered Appropriations in Previous Appropriation Acts (No. 2 of 2009-2010) was enacted on 30 July 2010, providing the Minister for Finance and Deregulation the authority to reduce appropriations for certain departments and agencies under the annual Appropriation Act (No. 3) 2009-2010. This legislation was introduced to address the issue of accumulated appropriations for depreciation and make good expenses that had not been applied by agencies. The policy objective was to streamline financial management by ensuring that agencies do not retain access to appropriations that have not been utilised, thus improving budgetary efficiency and compliance with the accrual appropriations framework introduced in 1999-2000. This determination rectifies administrative errors in a previous reduction process, ensuring that all intended appropriations are correctly adjusted in line with the fiscal policies established.

Scope and Application

The Determination to Reduce Departmental and Administered Appropriations in Previous Appropriation Acts (No. 2 of 2009-2010) applies specifically to the Department of Infrastructure, Transport, Regional Development and Local Government (DITRDLG) and amends previous appropriation Acts to reduce certain appropriations. Authorised by subsection 14(1) of the annual Appropriation Act (No. 3) 2009-2010, this determination corrects an oversight from an earlier determination by reducing administered items for DITRDLG by a total of $1,911,740.16. This correction ensures that all previously unapplied appropriations for depreciation and make good expenses are appropriately reduced. The legislation is applicable on a national level within the Commonwealth of Australia and targets specific appropriations that had not yet been utilised by the department. It does not specify exclusions or exemptions beyond the scope of its application to the DITRDLG and the particular appropriation items listed in Schedule 1. While the primary Act addresses the legislative adjustments, subordinate instruments and amendments may further define or extend its application as necessary.

Key Provisions

The Determination to Reduce Departmental and Administered Appropriations in Previous Appropriation Acts (No. 2 of 2009-2010) made under the authority of the Minister for Finance and Deregulation is detailed in Schedule 1, Item 1, which specifies the reduction of administered items in previous annual appropriation Acts for the Department of Infrastructure, Transport, Regional Development and Local Government (DITRDLG) by a total amount of $1,911,740.16. This follows a similar determination (No. 1) made on 27 May 2010, which reduced departmental and administered items by a total of $512,616,399.91. These reductions were identified as appropriations for depreciation and make good expenses that had not been applied by the agencies. The legislative authority for these determinations is provided by subsection 14(1) of the annual Appropriation Act (No. 3) 2009-2010 and subsection 18(1) of the Appropriation Act (No. 4) 2009-2010. The obligations imposed by the Act include the requirement for the Minister for Finance and Deregulation to identify and determine the reduction of appropriations for depreciation and make good expenses that have not yet been applied by the relevant agencies. This is to ensure that agencies no longer need to retain access to these appropriation amounts following the cessation of the accrual appropriations arrangement as of the 2010 Budget. The Minister must also consult with the affected agency, in this case DITRDLG, in the preparation of the instrument, as mandated by the Legislative Instruments Act 2003. There are no explicit offences or penalties stated in the determination itself. However, the legislative instruments created under this authority are disallowable. This means that either House of Parliament can vote to disallow the instrument within a specified period, rendering it invalid. The consequences of a disallowance would be the nullification of the reductions determined, potentially impacting the financial planning and operations of the affected agency. The disallowance process provides a check on the executive's use of this authority, ensuring that any reductions are subject to parliamentary oversight.