WARNING:
This Digest is prepared for debate. It reflects the legislation as
introduced and does not canvass subsequent amendments.
This Digest was available from 11 September 1996.
CONTENTS
Appropriation Bill (No. 1) 1996-97
Date Introduced: 20 August 1996
House: House of Representatives
Portfolio: Finance
Commencement: Royal Assent
This Bill, together with the Supply Act (No. 1)
1996-97, appropriates a total of $32 141 516 000 from the
Consolidated Revenue Fund (CRF) for the ordinary annual services of
government for the 1996-97 financial year.
The second reading speech for this Bill is the vehicle used to
introduce the Budget.
This Bill forms part of a package relating to government
finance. The Bill covers expenditure for the ordinary annual
services of government, while the Appropriation Bill (No. 2)
1996-97 deals with expenditure on capital works and programs,
payments to the States and Territories other expenditure not
covered by specific legislation. Spending for the Parliamentary
Departments is sought under the Appropriation (Parliamentary
Departments) Bill 1996-97. If the amount appropriated under these
Bills is insufficient for the year, additional funding may be
sought through further Appropriation Bills, usually introduced in
the March/April period. Authority to spend under the Appropriation
Acts lapses on 30 June and spending between this time and the
passing of the next years Appropriation Bills is authorised under
the Supply Acts, which are usually introduced late in the financial
year.
The Budget deficit for 1996-97 is estimated to be $5649 million
(1.1% of GDP) compared with a deficit of $10 317 million (2.1% of
GDP) in 1995-96. The deficit for 1997-98 is estimated to be $1548
million (0.3% of GDP). Measures taken since the march 1996 election
and in the Budget are estimated to reduce expenditure by $2 900
million in 1996-97 and $5 200 million in 1997-98.(1)
The Budget is based on a number of economic assumptions,
including the following annual percentage growth rates:
Real GDP: 3.5%
Employment: 1.25%
Wages: 5%
CPI: 2%
Revenue: Total revenue for 1996-97 is estimated to be $130 160
million, an increase of $8 670 million (or 7%) over 1995-96. The
main increases in revenue will come from increases in tax revenue,
with individuals income tax increasing by $5 526 million (or 9.1%)
and company tax by $1 448 million (or 7.9%). Non-tax revenue is
estimated to fall by $170 million (or 3.2%) when compared to
1995-96.(2)
Outlays: Total outlays for 1996-97 are estimated to be $129
686.5 million (or 25.2% of GDP) compared with $126 705.2 million in
1995-96 (or 26.1% of GDP). The estimated expenditure for 1996-97
represents a real decrease of 0.5% over the previous year.(3)Major
reductions in spending occur in the following Departments:
Employment, Education, Training and Youth Affairs: The
appropriation for 1996-97 is $2 838.251 million, compared to
spending of $3 458.434 million in 1995-96. Reductions occur in
labour market and training assistance, the Australian National
Training Authority and the Teacher Professional Development
Program.
Industrial Relations: The appropriation for 1996-97 is $127.805
million compared to spending of $170.671 in 1995-96. Main
reductions occur in relation to the Trade Union Training Authority,
the Australian Industrial Registry, the Affirmative Action Agency
and the International Labour Organisation.
Important program changes are dealt with in the Parliamentary
Research Service's publication Budget Review 1996-97 and
readers are referred to that document for further information.
Clause 3 will authorise the Minister for
Finance to issue $17 618 980 000 from the CRF for the ordinary
annual services of the government during 1996-97 as specified in
Schedule 3 of the Bill (which provides a Departmental and program
breakdown of the expenditure), while clause 4
provides that this amount, combined with the funds appropriated
under the Supply Act (No. 1) 1996-97, will amount to an
annual appropriation of $32 141 516 000.
Clause 5 will authorise the Minister for
Finance to issue additional funds in respect of increases in
salaries in 1996-97.
Other provisions of the Bill relate to:
- the funding of bodies, such as the Productivity Commission,
which have yet to come into existence. These may also make
provision for the transfer of funds from current programs and
bodies to the new bodies;
- amendments to the Supply Act (No. 1) 1996-97 to
reflect earlier spending reductions; and
- amendments to the proposed Financial Management and
Accountability Act 1996 (the amendments are essentially of a
technical nature).
(1) Budget Paper No. 1 1996-97, pp. 1-3 to 1-7.
(2) Ibid., p. 4-3.
(3) Ibid., p. 3-11.
Chris Field Ph. 06 277 2439
6 September 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
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Published by the Department of the Parliamentary Library,
1996.
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Commonwealth of Australia
Last updated: 6 September 1996
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