Net Appropriation Agreement for Refugee Review Tribunal

Administered by Department of Finance

Legislation au F2006B00476 Not in force Legislative Instrument

Legislation content

FINANCIAL MANAGEMENT AND ACCOUNTABILITY ACT 1997, Section 31

 

 

NET APPROPRIATION AGREEMENT

 

For Refugee 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 Refugee 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

Refugee Review Tribunal

 

 

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

 

Dated              10 November 2004

 

 

Overview

The Financial Management and Accountability Act 1997 (FMA Act) was enacted to ensure proper financial management and accountability within the Commonwealth government, addressing the need for clear guidelines on how funds are appropriated and managed. This Act, enacted by the Australian Parliament, provides a framework for the appropriation of funds to government agencies, including mechanisms for increasing appropriations based on eligible receipts, as outlined in section 31. The policy objective of the FMA Act is to maintain fiscal discipline and transparency in the use of public funds, ensuring that agencies operate within their budgetary limits and that financial reporting is accurate and reliable. The net appropriation agreement for the Refugee Review Tribunal, established under section 31 of the FMA Act, allows for the increase of appropriations based on certain eligible receipts, such as those from the sale of goods, provision of services, and court-awarded costs, while excluding fines, damages, and certain taxes. This agreement facilitates the adjustment of annual appropriation items in accordance with the tribunal's actual financial inflows, thereby aligning spending with revenue generation.

Scope and Application

The Financial Management and Accountability Act 1997 (FMA Act) sets out the legislative framework governing financial management within Australian government agencies, including the Refugee Review Tribunal (RRT). This Act, specifically section 31, facilitates a net appropriation agreement between the Minister for Finance and Administration and the Minister for Immigration and Multicultural and Indigenous Affairs, which applies to the RRT. The agreement pertains to the RRT's eligible receipts, which encompass various types of revenue such as sales, leasing, hiring, service provision, payment for associated benefits, sale of minor assets, transfer of leave entitlements, and subsidy or grant moneys from employment schemes. Notably, this agreement does not include court-awarded fines, damages, taxes, levies, or specific cost-recovered activities unless they relate to legal costs incurred in litigation. The agreement is designed to increase the appropriation to the RRT by the total amount of its eligible receipts, subject to the conditions set out in the annual appropriation Acts, and remains in effect until replaced by a new agreement. The agreement also specifies that the Efficiency Dividend will not apply to amounts deemed appropriated under this agreement, ensuring that the RRT's financial management aligns with statutory requirements and reporting obligations.

Key Provisions

The main operative sections of the Net Appropriation Agreement for the Refugee Review Tribunal under the Financial Management and Accountability Act 1997 (FMA Act) revolve around the definition and application of eligible receipts (Section 5.1), and how these receipts increase the appropriation items for the agency (Section 6.1). Eligible receipts include proceeds from the sale, leasing, hiring out, or other dealings with goods, provision of services, payments for associated benefits, sales of minor assets, transfers of leave entitlements, and subsidy and grant moneys (Section 5.1). These eligible receipts are then used to increase the appropriation items for the agency by 100% (Section 6.1.1). This increase in appropriation items is subject to the provisions of the annual appropriation Acts. The obligations and requirements imposed on the Refugee Review Tribunal by this Agreement include maintaining proper accounts and records of all appropriations to ensure compliance with constitutional and statutory appropriation requirements (Section 6.1, Notes). The Tribunal must be able to identify, quantify, and report the amounts attributable to net appropriation receipts within their Financial Management Information System or other supporting systems or documentation. These amounts must be reported as required in the relevant budget documents, agency financial statements, and the Consolidated Financial Statements. The Tribunal also has the responsibility to stay informed about any changes to reporting requirements that affect net appropriation reporting. The Act does not explicitly state any offences, penalties, or civil/criminal consequences for breach of this agreement. However, the requirement to keep proper accounts and records and to accurately report on appropriations is crucial. Failure to comply with these requirements could potentially lead to financial mismanagement or misreporting, which might attract scrutiny from financial oversight bodies and could result in administrative or legal consequences under broader financial management and accountability laws.

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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.