Bills Digest No. 193  1998-99 Appropriation Bill (No. 2) 1999-2000


Numerical Index | Alphabetical Index

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 and Copyright Details

Passage History

Appropriation Bill (No. 2) 1999-2000

Date Introduced: 11 May 1999

House: House of Representatives

Portfolio: Treasury

Commencement: Royal Assent

 

Purpose

To appropriate $5 735 million for payments for purposes other than the ordinary services of government, including capital expenditure, administered expenses for new outcomes and grants to the States and Territories.

For further information on the changes to the various portfolios, refer to the Library publication 'Budget Review 1999-2000'.

 

Background

This Bill, together with the Appropriation Bill (No. 1) 1999-2000 and the Appropriation Bill (Parliamentary Departments) 1999-2000 form the major part of the annual appropriations and are used to introduce the annual Budget. For further information on the Appropriation Bills, refer to the Digest for the Appropriation Bill (No. 1) 1999-2000.

As the Budget has for the first time been prepared using accrual accounting, appropriations for the various agencies are divided into specific payments for the States and Territories, other administered expenses and equity injections and loans. The Schedule to the Bill gives an agency comparison between the 1998-99 estimates for these categories and the amounts proposed to be appropriated by this Bill. The Schedule reflects not only changes to funding levels but also in accounting methods, particularly in the allocation of funds between administrative and capital expenses and grants to the States and Territories being allocated on an outcome basis.

 

Main Provisions

In regard to allocation to the States for the outcomes specified in the Schedule, clause 6 provides that the Finance Minister may issue the lesser of the amount specified in the relevant Department 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 7 contains similar provisions as clause 6 but relates to administered items.

Where an appropriation is made for an administered capital purpose, the outcome that may be achieved must be a purpose listed in Schedule 2 of the Bill or in the Schedule to the Appropriation Bill (No. 1) 1999-2000 (this reflects the allocation of all capital expenditure in this Bill) (clause 8).

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 9). (This is similar to provisions contained in Appropriation Bill (No. 1) 1999-2000 and reflects the difference in the Minister's role in relation to Departmental and administered capital items [ie the Minister has no discretion in relation to Department items]).

The Minister will be given power to issue a maximum 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 10).

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 12).

Clause 13 will formally appropriate the funds for the purposes of the Bill.

 

Contact Officer and Copyright Details

Chris Field
3 June 1999
Bills Digest Service
Information and Research Services

This paper has been prepared for general distribution to Senators and Members of the Australian Parliament. While great care is taken to ensure that the paper is accurate and balanced, the paper is written using information publicly available at the time of production. The views expressed are those of the author and should not be attributed to the Information and Research Services (IRS). Advice on legislation or legal policy issues contained in this paper is provided for use in parliamentary debate and for related parliamentary purposes. This paper is not professional legal opinion. Readers are reminded that the paper is not an official parliamentary or Australian government document.

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

ISSN 1328-8091
© Commonwealth of Australia 1999

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, 1999.

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