Bills Digest 86 1995-96 Supply Bill (No. 1) 1996-97


Numerical Index | Alphabetical Index

WARNING:
This Digest is prepared for debate. It reflects the legislation as introduced and does not canvass subsequent amendments.

This Digest was available from 23 May 1996.

CONTENTS

Passage History

Date introduced: 8 May 1996
House: House of Representatives
Portfolio: Finance
Commencement: Royal Assent

Purpose

To authorise the Minister for Finance to issue $14 659 174 000 from the Consolidated Revenue Fund (CRF) for the ordinary annual services of government for the 1996-97 financial year.

Background

The Supply Bill (No. 1) 1996-97, together with the Supply Bill (No. 2) 1996-97 and the Supply (Parliamentary Departments) Bill 1996-97, provide interim appropriations for the period between the start of the 1996-97 financial year and the passage of the 1996-97 Appropriations Bills, which are introduced in the 1996 Budget. The amounts appropriated by the Supply Bills are incorporated with those made under the Appropriation Acts to form the yearly expenditure.

Supply Bills are required as a result of the timing factors in the Budget cycle. The Commonwealth financial year begins on 1 July, but the Budget pertaining to this year will not be presented until August and it is usually not until November that the Appropriation Bills have been enacted. Since the Appropriation Bills of the previous financial year lapse on 30 June, a hiatus of approximately five months duration appears in the financial activities of the Government. This hiatus necessitates interim appropriations. This is achieved through the passing of Supply Bills shortly before the end of the previous financial year.

The appropriations set out in the Supply Bills usually represent a pro-rata extrapolation of the previous year's annual appropriations to cover a five-month period.

It should be noted that the 1996-97 Supply Bills do not pre-empt the savings the Government has foreshadowed will be made in the August Budget. The Minister for Finance in the Second Reading Speech to the Bill says:

However, The Government is committed to a fundamental review of its activities and inclusion of a specific amount in the Supply Bills will not pre-empt the Government from effecting further savings in the August Budget in order to meet our commitments to the Australian people.

Main Provisions

Clause 4 will authorise the Minister for Finance to issue $14 659 174 000 from the CRF for the purposes detailed in the Schedule to this Bill. The Schedule lists the Departments and programs to which funds are allocated, including appropriations for:

  • Department of Defence - $4 615 960 000. This principally consists of $2 261 141 000 for administrative running costs and $1 819 776 000 for equipment and stores.

Comment: Running costs currently encompass six notional items. These are Senior Executive Service (SES) Salaries, non-SES salaries, administration, recurrent property operating expenses, property operating expenses of a capital nature and the cost of legal services provided by the Attorney-General's Department. The non-running cost elements of agency finance are referred to as program costs.

Administrative running costs for the Department of Defence are estimated to total $5 174 947 000 in 1995-96.

  • Department of Employment Education and Training - $1 500 548 000. This principally consists of $928 279 000 for Labor Market and Training Assistance and $424 895 000 for administrative running costs.

Comment: Labor Market and Training Assistance includes programs such as JobStart, JobSkills and SkillShare.

Administrative running costs for the Department of Employment Education and Training are estimated to total $993 365 000 1995-96.

  • Department of Health and Family Services - $1 379 528 000. This principally consists of $504 230 000 for assistance for families with children (including expenditure under the Child Care Act 1972) and $170 566 000 for assistance for people with disabilities (including payment to the Rehabilitation Service Trust Account and expenditure under the Disability Services Act 1986).

Comment: Administrative running costs for the Department of Health and Family Services Training are estimated to total $258 156 173 in
1995-96.

  • Department of Foreign Affairs and Trade - $1 028 731 000. This principally consists of $186 772 000 for administrative running costs and 180 703 000 for the Australian Trade Commission.

Comment: Administrative running costs for the Department of Foreign Affairs are estimated to total $471 154 000 in 1995-96.

Clause 5 will allow additional appropriations in respect of increases in salaries. For
1996-97, the Minister for Finance may, before 1 December 1996, issue funds from the CRF to meet increases in salaries that become payable after 23 April 1996. Additional appropriations are to be reported to the Parliament.

Other provisions of this Bill deal with the financing of a number of bodies that have been foreshadowed but have yet to commence operations.

Contact Officer and Copyright Details

Ian Ireland Ph. 06 277 2438
Chris Field Ph 06 277 2439
17 May 1996
Bills Digest Service
Parliamentary Research Service

This Digest does not have any official legal status. Other sources should be consulted to determine whether the Bill has been enacted and, if so, whether the subsequent Act reflects further amendments.

PRS staff are available to discuss the paper's contents with Senators and Members and their staff but not with members of the public.

ISSN 1323-9032
© Commonwealth of Australia 1996

Except to the extent of the uses permitted under the Copyright Act 1968, no part of this publication may be reproduced or transmitted in any form or by any means, including information storage and retrieval systems, without the prior written consent of the Parliamentary Library, other than by Members of the Australian Parliament in the course of their official duties.

Published by the Department of the Parliamentary Library, 1996.

This page was prepared by the Parliamentary Library, Commonwealth of Australia
Last updated: 23 May 1996

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