Ministers of State Amendment Act 2002

Overview

The Ministers of State Amendment Act 2002 was enacted by the Parliament of Australia to amend the Ministers of State Act 1952, with the primary aim of adjusting the financial allowances for ministers of state. The Act received Royal Assent on 4 April 2002. One of its key objectives, as outlined in the Minister's second reading speech, was to update the monetary limit for certain allowances to reflect changes in economic conditions and the cost of living. The specific amendment made under this Act increases the maximum allowance for certain expenses from $2,300,000 to $2,800,000, effective from the 2001-02 financial year onwards. This adjustment was intended to ensure that the financial support provided to ministers remained adequate and relevant.

Scope and Application

The Ministers of State Amendment Act 2002 amends the Ministers of State Act 1952, primarily adjusting the monetary threshold applicable to certain allowances and payments for ministers and parliamentary secretaries. This Act applies to the Commonwealth of Australia and affects both current and future ministers and parliamentary secretaries by altering the financial year from 2001-02 onwards. The specific change involves increasing the monetary threshold from $2,300,000 to $2,800,000, affecting the calculation of allowances and payments. The Act does not specify exclusions or exemptions beyond the scope of its amendments, and it does not extend its application through subordinate instruments but rather operates as a direct amendment to the 1952 Act. This legislative amendment is confined to the financial adjustments noted and does not introduce new categories of persons or entities or expand the geographic or jurisdictional reach of the original Act.

Key Provisions

The Ministers of State Amendment Act 2002 primarily amends the Ministers of State Act 1952. The key amendment, as specified in Schedule 1, item 1, involves the substitution of the monetary figure in Section 5 of the original Act. Specifically, it changes the amount from $2,300,000 to $2,800,000. This amendment applies from the 2001-02 financial year onwards, as stated in Schedule 1, item 2. This change likely pertains to the financial allowances or limits set for ministers of state. The Act imposes several obligations on the entities it governs. Primarily, it requires adherence to the updated financial limits set out in the amended Section 5. This means that from the specified financial year, any allowances or compensation for ministers of state must not exceed the new limit of $2,800,000. This change necessitates adjustments in the budgeting and financial planning processes within relevant government departments to ensure compliance with the new limits. Failure to comply with the financial limits set by the amended Act could result in various consequences. While the Act does not explicitly outline specific offences or penalties, breaches of financial regulations often lead to administrative penalties, investigations, and potential legal action. The severity of penalties can vary based on the nature and extent of the breach, but they could include financial penalties, administrative sanctions, or even criminal charges in cases of significant non-compliance or fraud.