Bills Digest No. 86 2002-03
Appropriation Bill (No. 4) 2002–2003
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
Concluding Comments
Endnotes
Contact Officer & Copyright Details
Passage History
Appropriation
Bill (No. 4) 2002–2003
Date Introduced:
11 December 2002
House:
House of Representatives
Portfolio:
Finance and Administration
Commencement:
Royal Assent
Purpose
To authorise the Minister for Finance
to issue $263 750 000 from the Consolidated Revenue Fund (CRF) in addition
to the funds appropriated by the Appropriation Act (No. 2) 2002-2003
for proposed expenditure on capital works and services, payments to the
States and Territories and other purposes.
For general information on the Appropriation process
refer to Bills Digest for the Appropriation Bill (No. 3) 2002-03.
As noted in the Second Reading Speech to the Appropriation
Bill (No. 3) 2002-2003, 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 2002-2003 and this Bill. Appropriation Act (No. 2) appropriated
$6 120 821 000 while this Bill appropriates an additional $263 750 000.
Major additional appropriations listed in this Bill by
portfolio include:
- Defence: the Bill appropriates an additional $124 786 000 for
the Defence Portfolio. Schedule 2 to the Bill notes that this additional
amount is for equity injections.
The reader is referred to the Portfolio Additional
Estimates Statements for the Department
of Defence(1) for details as to the monies sought under
this portfolio.
- Treasury: the Bill appropriates an additional $29 998 000 for
the Treasury Portfolio. Schedule 2 to the Bill notes that this additional
amount is for ‘effective government spending and taxation arrangements’.
The reader is referred to the Portfolio Additional
Estimates Statements for the Department
of the Treasury(2) for details as to the monies sought
under this portfolio.
- Health and Ageing: the Bill appropriates an additional $22
708 000 for the Health and Ageing portfolio. Schedule 2 to the Bill
notes that $10 731 000 of this additional amount is for ‘administered
assets and liabilities’ and $6 284 000 is for ‘improved quality, integration
and effectiveness of health care’.
The reader is referred to the Portfolio Additional
Estimates Statements for the Department
of Health and Ageing(3) for details as to the monies
sought under this portfolio.
- Family and Community Services: the Bill appropriates an additional
$22 514 000 for the Family and Community Services portfolio. Schedule
2 to the Bill notes that $16 387 000 of this additional amount is for
‘income support measures and services that encourage independence and
contribution to the community’ and so facilitate ‘participation in the
labour force and community life’. A further $5 453 000 is for equity
injections for Centrelink.
The reader is referred to the Portfolio Additional
Estimates Statements for the Department
of Family and Community Services(4) for details as to
the monies sought under this portfolio.
According to the Second Reading Speech, major appropriations
for individual items in this Bill are:
- $69.4 million in additional payments to the States and Territories,
including:
-$15 million as a result of the supplementation offer
made to the States and Territories as part of the third Commonwealth
State Territory Disability Agreement;
-$5.5 million in support of the National Aerial Firefighting
Strategy; and
-$30 million for the First Home Owners Scheme.
- $12.7 million for staff entitlement and other obligations in the wind-up
of Employment National;
- $10.2 million to enhance physical security at Australia's overseas
posts;
- $7 million to enhance the travel documents screening system; and
- $5.1 million to enhance the budget information systems.
In regard to allocation to the States for the outcomes
specified in Schedule 2, 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 2002-2003 Appropriation
Act (clause 9).
In relation to appropriations for ‘other departmental
items’ (equity injections, loans or previous years’ outputs), where an
Act provides that an amount is to be allocated to a Department and this
Bill contains such an item, the Finance Minister must issue the full amount
of the item (clause 10). The Minister may determine that an appropriation
in this Bill or in the Appropriation Act (No.2) 2002-2003 for any
of the ‘other departmental items’ be increased, but the total of any such
increases cannot be more than $20 million (clause 11).
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 12).
The Minister must give Parliament details of any increases
determined under clauses 11 or 12.
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.
- http://www.defence.gov.au/budget/02-03/index.html
- http://www.budget.gov.au/2002-03/paes/html/tsy_index.html
- http://www.health.gov.au/pubs/budget2002/additional.htm
- http://www.facs.gov.au/internet/facsinternet.nsf/aboutfacs/budget/budget2002-budget2002.htm
Peter Prince
20 January 2003
Bills Digest Service
Information and Research Services
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ISSN 1328-8091
© Commonwealth of Australia 2003
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Published by the Department of the Parliamentary Library, 2003.
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