Net Appropriation Agreement for Migration Review Tribunal (15/11/2004)

Administered by Department of Finance

Legislation au F2006B00449 Not in force Legislative Instrument

Legislation content

FINANCIAL MANAGEMENT AND ACCOUNTABILITY ACT 1997, Section 31

 

 

NET APPROPRIATION AGREEMENT

 

For Migration Review Tribunal

 

This Agreement is made between:

 

THE MINISTER FOR FINANCE AND ADMINISTRATION

 

AND

 

THE MINISTER FOR IMMIGRATION AND MULTICULTURAL AND INDIGENOUS AFFAIRS

 

 

  1. INTRODUCTION
    1.        This net appropriation agreement is made under section 31 of the Financial Management and Accountability Act 1997 (the FMA Act).
    2.        Under this agreement, if the agency receives any amounts covered by the agreement, the appropriation to the agency in the annual appropriation Act will be increased.

Note 1 Section 31 of the FMA Act, together with certain standard provisions of the annual appropriation Acts, allows a departmental item (or in some rare instances, an administered item) to be increased by an amount up to the amount of eligible receipts where the Finance Minister (or his or her delegate) and the responsible Minister have entered into a net appropriation agreement.

Note 2 This agreement is given effect by specific provisions within the annual appropriation Acts. Therefore, the agreement only has effect while the relevant specific provisions exist in the annual appropriation Acts.

1.3.           This agreement will commence on upon the signature of the second party.

2.                 DEFINITIONS

2.1.           In this agreement:

2.1.1.    'the agency' means the Migration Review Tribunal.

2.1.2.    ‘eligible receipts’ means the receipts set out in clause 5.1 of this agreement.


3.                 PURPOSE

3.1.           This net appropriation agreement records the extent to which the amount specified in an item in an annual appropriation Act may be taken to be increased by reference to eligible receipts of the agency.

Note:  In most cases the item in the annual appropriation Act will be taken to be increased by the whole amount received by the agency.  However, in some cases, the item in the annual appropriation Act will only be taken to be increased by a proportion of the whole amount received by the agency - see clause 6.

4.                 DURATION OF THE AGREEMENT

4.1.           This agreement replaces any previous net appropriation agreement between the Finance Minister and the responsible Minister in respect of any of the appropriation items identified in this agreement.

4.2.           This agreement continues until a new net appropriation agreement covering the appropriation item identified in this agreement is executed by both parties to the agreement.

 

Note: Under s.31(4) of the FMA Act, the Finance Minister may at any time cancel or vary this agreement, without the consent of the other party.

 

5.                 NATURE OF ELIGIBLE RECEIPTS

5.1.           The following receipts are eligible receipts for the purposes of this agreement:

5.1.1.    Receipts from the sale, leasing, hiring out of, or other dealing with goods.

5.1.2.    Receipts from the provision of staff and other services.

5.1.3.    Receipts from a person (whether employed, appointed by, or performing services for, the Commonwealth) as payment for any associated benefit provided (whether to that person or another person).

5.1.4.    Receipts from the sale of minor assets that are departmental in nature such as furniture and fittings.

5.1.5.    Receipts from the transfer of annual and long-service leave entitlements between agencies.

5.1.6.    Subsidy and grant moneys received as a result of participation in employment subsidy schemes or programs. 

5.1.7.    Court awarded costs to the extent to which they reflect legal costs incurred in litigating the matter.

 

5.2.           For the avoidance of doubt, receipts under item 5.1 do not include:

5.2.1.    Court awarded fines and damages, etc (other than to the extent covered by paragraph 5.1.7); and

5.2.2.    Receipts from taxes, levies or specific cost recovered activities where the receipts are raised under legislation and where the activities are budget funded.

Note 1 User charging activities should comply with the Government’s cost recovery policy as set out in the Commonwealth Cost Recovery Guidelines for Information and Regulatory Agencies.

Note 2  Other amounts continue to be covered by Section 28 of the FMA Act, including Court fees repaid to successful applicants under Regulation 4.31B of the Migration Regulations 1994.

6.                 INCREASE IN APPROPRIATION ITEMS

6.1              Subject to the net appropriation provisions of the annual appropriation Acts, the Departmental item for the agency is taken to be increased by the following amounts:

6.1.1      For all receipts listed in 5.1,100%.

 

Notes

  1. In order to comply with the appropriation requirements of sections 81 and 83 of the Constitution and with sections 19 and 48 of the FMA Act, agencies must keep proper accounts and records of all appropriations to ensure that they do not spend above their appropriation limits.
  2. The agency must be able to identify, quantify and, if requested, produce information to show the amounts attributable to net appropriation receipts. This information should be available within the agency’s Financial Management Information System or in other supporting systems or documentation.
  3. The agency must report the net appropriations referred to above, as required, in the relevant Budget documents, agency financial statements and the Consolidated Financial Statements.
  4. It is the agency’s responsibility to be aware of any changes to reporting requirements which affect net appropriation reporting requirements.
  5. The Efficiency Dividend will not apply to any amounts deemed to be appropriated under this agreement.

 

SIGNED.................................................Delegate of the Minister for Finance and Administration

SIGNED................................................. Delegate of the Minister for Immigration and Multicultural and Indigenous Affairs

 

Peter Saunders

Division Manager

Government and Defence Division

Budget Group

 

 

...............................................................

 

 

Dated           15 November 2004

 

Steve Karas OAM

Principal Member

Migration Review Tribunal

 

 

 

...............................................................

 

 

Dated             10 November 2004

 

 

Overview

The Financial Management and Accountability Act 1997 (FMA Act) was enacted to address the need for improved financial management and accountability within the Commonwealth. This legislation, which was passed by the Australian Parliament, aims to establish a robust framework for the management of public funds, ensuring that they are used efficiently and effectively in accordance with the law. One of the mechanisms introduced under the FMA Act is the net appropriation agreement, designed to allow certain agencies to increase their appropriations based on eligible receipts. For example, the net appropriation agreement between the Minister for Finance and Administration and the Minister for Immigration and Multicultural and Indigenous Affairs pertains specifically to the Migration Review Tribunal. This agreement, which is effective under section 31 of the FMA Act, ensures that the Tribunal's appropriation is adjusted based on its eligible receipts, thereby aligning the agency's funding with its actual revenue generation. The policy objective here is to provide a flexible financial management tool that allows agencies to better manage their budgets and financial obligations.

Scope and Application

The Financial Management and Accountability Act 1997 (FMA Act) governs the financial management and appropriation of funds within Australian Commonwealth entities. Section 31 of the FMA Act facilitates net appropriation agreements, which enable the appropriation to an agency to be increased by the amount of eligible receipts. This particular net appropriation agreement pertains to the Migration Review Tribunal, detailing the circumstances under which the appropriation to the Tribunal can be augmented by eligible receipts. Eligible receipts include those from the sale, leasing, hiring out, or other dealings with goods; provision of staff and other services; payments for associated benefits; sale of minor assets; transfer of annual and long-service leave entitlements between agencies; and subsidy and grant moneys from employment subsidy schemes or programs. Notably, this agreement excludes receipts such as court awarded fines and damages, and those from taxes, levies, or specific cost recovery activities. The agreement is effective upon the signature of the second party and continues until a new agreement is executed, though the Finance Minister retains the authority to cancel or vary it at any time. This agreement is implemented through specific provisions within the annual appropriation Acts, thus its effect is contingent on the existence of these provisions.

Key Provisions

The Financial Management and Accountability Act 1997 (FMA Act) establishes the framework for the financial management of Commonwealth entities, including the Migration Review Tribunal. Under section 31 of the FMA Act, a net appropriation agreement can be made between the Minister for Finance and Administration and the Minister for Immigration and Multicultural and Indigenous Affairs. This agreement, as illustrated in this legislative instrument, outlines the conditions under which the appropriation for the Migration Review Tribunal may be increased based on eligible receipts. These eligible receipts are specified in clause 5.1 of the agreement and include income from the sale, leasing, hiring out, or other dealings with goods, provision of staff and other services, payments for associated benefits, sale of minor assets like furniture and fittings, transfers of leave entitlements between agencies, and subsidy and grant moneys resulting from employment subsidy schemes or programs. Notably, this agreement does not cover court-awarded fines and damages, taxes, levies, or specific cost-recovered activities. The agreement imposes certain obligations on the Migration Review Tribunal, most importantly, the requirement to maintain accurate accounts and records of all appropriations to ensure compliance with the Constitution and the FMA Act. The Tribunal must be able to identify, quantify, and provide information on the amounts attributable to net appropriation receipts upon request, ensuring this information is accessible within the agency’s Financial Management Information System or in supporting documentation. Furthermore, the Tribunal is required to report on the net appropriations in relevant budget documents, financial statements, and the Consolidated Financial Statements. It is also the responsibility of the Tribunal to stay informed about any changes to reporting requirements that may impact net appropriation reporting. Failure to comply with the provisions of the FMA Act and the terms of the net appropriation agreement could result in civil or criminal consequences. While specific penalties are not detailed in the text provided, breaches of financial management legislation can generally lead to civil penalties such as fines and criminal penalties, including imprisonment, depending on the severity and intent of the breach. These penalties underscore the importance of adherence to the financial management and reporting obligations set forth by the agreement and the FMA Act.

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Financial Management & Accountability
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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.