Bills Digest No. 102 2001-02
Appropriation Bill (No. 4) 2001-2002
WARNING:
This Digest was prepared for debate. It reflects the legislation as
introduced and does not canvass subsequent amendments. This Digest
does not have any official legal status. Other sources should be
consulted to determine the subsequent official status of the
Bill.
CONTENTS
Passage History
Purpose
Background
Main Provisions
Contact Officer & Copyright Details
Passage History
Appropriation Bill (No. 4)
2001-2002
Date Introduced: 14 February 2002
House: House of Representatives
Portfolio: Finance and Administration
Commencement: Royal Assent
To authorise the
Minister for Finance to issue $1 173 913 000 from
the Consolidated Revenue Fund (CRF) in addition to the funds
appropriated by the Appropriation Act (No. 2) 2001-2002
for proposed expenditure on capital works and services, payments to
the States and Territories and other services.
For general information on the Appropriation
process refer to Bills Digest for the Appropriation Bill (No. 3)
2001-02.
As noted in the Second Reading Speech to the
Appropriation Bill (No. 3) 2001-2002, there have also been savings
in various items from the Budget appropriations and this must be
considered when determining the total effect on government outlays
from the additional amounts appropriated. Savings from the initial
amount appropriated by Appropriation Acts Nos. 1 and 2 are
contained in the Department of Finance and Administration
Information Paper titled Statement of Savings in Annual
Appropriations.
Funding for expenditure other than for 'the
ordinary annual services of government', principally capital
expenditure and grants to the States and Territories, is contained
in Appropriation Act No. 2 2001-2002 and this Bill. The
Appropriation Act (No. 2) appropriated
$4 524 716 000 while this Bill appropriates an
additional $1 173 913 000.
Outline of Major Additional
Appropriations
Major additional appropriations effected by this
Bill are:
-
- Defence: $843 611 000 is sought to
be appropriated for the Defence portfolio. As stated in Schedule 2
of the Bill, this total comprises $743 611 000 in equity
injections for the Department of Defence and $100 000 000
in loans for the Defence Housing Authority. The Second Reading
Speech to the Bill states that the $743 611 000 equity
injection for the Department of Defence is for funding:
-
- the war against terrorism and unauthorised boat arrivals ($103
million)
-
- parameter and foreign exchange adjustments ($72 million)
-
- provision to Defence of a share of the proceeds from the sale
of the Melbourne and Sydney Plazas ($79 million), and
-
- $489 million to meet costs incurred in 2000-2001 and funding
for the purchase of specialist military equipment, inventory and
other capital requirements.
The reader is referred to the Portfolio
Additional Estimates Statements for the Department of Defence for
details as to the moneys sought under this portfolio: (http://www.defence.gov.au/budget/01-02paes/menu.htm).
Treasury: a total of
$195 177 000 million is sought to be appropriated by the
Department of the Treasury. As stated in Schedule 2 of the Bill,
this total comprises $194 998 000 for the "[E]ffective
government spending and taxation arrangements", and $179 000
for "[A]dministered capital". The reader is referred to the
Portfolio Additional Estimates Statements for the Department of the
Treasury for details as to the moneys sought under this portfolio:
(http://www.budget.gov.au/paes/index.htm).
The $194 998 000 is for administered expenses in relation
to the First Home Owners Scheme.
Immigration and Multicultural and
Indigenous Affairs: a total of $47 539 000 is
sought to be appropriated by the Department of Immigration and
Multicultural and Indigenous Affairs. As stated in Schedule 2 of
the Bill, this total comprises $102 000 for "[A] society which
values Australian citizenship, appreciates cultural diversity and
enables migrants to participate equitably, $46 300 000 in
equity injections, and $1 137 000 carryover from previous
years to the Migration Review Tribunal. The Second Reading Speech
to the Bill states that "an additional $45 million equity injection
for the Department of Immigration and Multicultural and Indigenous
Affairs to provide for detention contingency for unauthorised
arrivals in Australia." The reader is referred to the Portfolio
Additional Estimates Statements for the Department of Immigration
and Multicultural and Indigenous Affairs for details as to the
moneys sought under this portfolio: (http://www.minister.immi.gov.au/general/paes01.pdf).
In regard to allocation to the States for the
outcomes specified in the Schedule, clause 7
provides that the Finance Minister may issue the lesser of the
amount specified in the relevant Departmental allocation and the
amount determined by the Finance Minister to be the actual
expenditure incurred for that purpose. The clause also contains the
requirement that the funds may only be allocated to achieve the
specified outcome.
Clause 8 contains similar
provisions as clause 7 but relates to administered
items.
Where an appropriation is made for an
administered capital purpose, the outcome that may be achieved must
be for a purpose listed in Schedule 2 of the Bill or in a Schedule
to a 2001-2002 Appropriation Act (clause 9).
In relation to appropriations for capital
expenditure for a Department, where an Act provides that an amount
is to be allocated to a Department and this Bill contains a capital
item for the Department, the Finance Minister must issue the full
amount of the item (clause 10).
The Minister will be given power to issue up to
an additional of $215 million over the year to take account of
unforeseen expenditure or where there has been an 'erroneous
omission or understatement' in relation to extra expenses
(clause 11).
The relevant Minister listed in Schedule 1 of
the Bill will be able to determine conditions under which payments
to the States and Territories may be made (clause
14).
Clause 15 will formally
appropriate the funds for the purposes of the Bill.
Ian Ireland
13 March 2002
Bills Digest Service
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ISSN 1328-8091
© Commonwealth of Australia 2002
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Published by the Department of the Parliamentary Library,
2002.
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