Commonwealth of Australia Explanatory Memoranda

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APPROPRIATION (TSUNAMI FINANCIAL ASSISTANCE AND AUSTRALIA INDONESIA PARTNERSHIP) BILL 2004 2005

2004-2005

The Parliament of the
Commonwealth of Australia

HOUSE OF REPRESENTATIVES


Presented and read a first time




Appropriation (Tsunami Financial
Assistance and Australia-Indonesia
Partnership) Bill 2004-2005
No.           , 2005
(Finance and Administration)



A Bill for an Act to appropriate money out of the
Consolidated Revenue Fund for certain
expenditure in relation to Tsunami financial
assistance and the Australia-Indonesia Partnership
for Reconstruction and Development, and for
related purposes


Contents Part 1--Preliminary 2 1 Short title.......................................................................................2 2 Commencement .............................................................................2 3 Definitions.....................................................................................2 4 Portfolio Statements.......................................................................4 5 Notional payments, receipts etc. .....................................................4 Part 2--Basic appropriations 5 6 Summary of basic appropriations....................................................5 7 Administered items--basic appropriation........................................5 8 Administered assets and liabilities items--basic appropriation .................................................................................5 9 Other departmental items--basic appropriation...............................6 10 Reduction of appropriations upon request .......................................7 Part 3--Additions to basic appropriations 9 11 Advance to the Finance Minister.....................................................9 Part 4--Miscellaneous 11 12 Crediting amounts to Special Accounts.........................................11 13 Appropriation of the Consolidated Revenue Fund .........................11 Schedule 1--Services for which money is appropriated 12 i Appropriation (Tsunami Financial Assistance and Australia-Indonesia Partnership) Bill 2004-2005 No. , 2005


1 A Bill for an Act to appropriate money out of the 2 Consolidated Revenue Fund for certain 3 expenditure in relation to Tsunami financial 4 assistance and the Australia-Indonesia Partnership 5 for Reconstruction and Development, and for 6 related purposes 7 The Parliament of Australia enacts: Appropriation (Tsunami Financial Assistance and Australia-Indonesia Partnership) Bill 2004- 2005 No. , 2005 1


Part 1 Preliminary Section 1 1 Part 1--Preliminary 2 3 1 Short title 4 This Act may be cited as the Appropriation (Tsunami Financial 5 Assistance and Australia-Indonesia Partnership) Act 2004-2005. 6 2 Commencement 7 This Act commences on the day on which it receives the Royal 8 Assent. 9 3 Definitions 10 In this Act, unless the contrary intention appears: 11 administered assets and liabilities item means an amount set out in 12 Schedule 1 in relation to an entity opposite the heading 13 "Administered Assets and Liabilities". 14 administered item means an amount set out in Schedule 1 opposite 15 an outcome of an entity under the heading "New Administered 16 Expenses". 17 Agency means any of the following: 18 (a) an Agency within the meaning of the Financial Management 19 and Accountability Act 1997; 20 (b) the High Court. 21 Commonwealth authority has the same meaning as in the 22 Commonwealth Authorities and Companies Act 1997. 23 Commonwealth company has the same meaning as in the 24 Commonwealth Authorities and Companies Act 1997. 25 current year means the financial year ending on 30 June 2005. 26 entity means any of the following: 27 (a) an Agency; 28 (b) a Commonwealth authority; 2 Appropriation (Tsunami Financial Assistance and Australia-Indonesia Partnership) Bill 2004-2005 No. , 2005


Preliminary Part 1 Section 3 1 (c) a Commonwealth company; 2 (d) the Australian National Training Authority. 3 expenditure means payments for expenses, acquiring assets, 4 making loans or paying liabilities. 5 Finance Minister means the Minister administering this Act. 6 item means any of the following: 7 (a) an administered item; 8 (b) an administered assets and liabilities item; 9 (c) an other departmental item. 10 other departmental item means an amount set out in Schedule 1 in 11 relation to an entity: 12 (a) opposite the heading "Equity Injections"; or 13 (b) opposite the heading "Loans"; or 14 (c) opposite the heading "Previous Years' Outputs". 15 Portfolio Additional Estimates Statements means the Portfolio 16 Additional Estimates Statements that were tabled in the Senate or 17 the House of Representatives in relation to the Bill for the 18 Appropriation Act (No. 3) 2004-2005 and the Bill for the 19 Appropriation Act (No. 4) 2004-2005. 20 Portfolio Budget Statements means the Portfolio Budget 21 Statements that were tabled in the Senate or the House of 22 Representatives in relation to the Bill for the Appropriation Act 23 (No. 1) 2004-2005 and the Bill for the Appropriation Act (No. 2) 24 2004-2005. 25 Portfolio Supplementary Additional Estimates Statements means 26 the Portfolio Supplementary Additional Estimates Statements that 27 were tabled in the Senate or the House of Representatives in 28 relation to the Bill for this Act and the Bill for the Appropriation 29 (Tsunami Financial Assistance) Act 2004-2005. 30 Special Account has the same meaning as in the Financial 31 Management and Accountability Act 1997. Appropriation (Tsunami Financial Assistance and Australia-Indonesia Partnership) Bill 2004- 2005 No. , 2005 3


Part 1 Preliminary Section 4 1 4 Portfolio Statements 2 (1) The Portfolio Budget Statements, Portfolio Additional Estimates 3 Statements and Portfolio Supplementary Additional Estimates 4 Statements are hereby declared to be relevant documents for the 5 purposes of section 15AB of the Acts Interpretation Act 1901. 6 Note: See paragraph 15AB(2)(g) of the Acts Interpretation Act 1901. 7 (2) If the Portfolio Budget Statements, Portfolio Additional Estimates 8 Statements or Portfolio Supplementary Additional Estimates 9 Statements indicate that activities of a particular kind were 10 intended to be treated as activities in respect of a particular 11 outcome, then expenditure for the purpose of carrying out those 12 activities is taken to be expenditure for the purpose of contributing 13 to achieving the outcome. 14 5 Notional payments, receipts etc. 15 For the purposes of this Act, notional transactions between 16 Agencies are to be treated as if they were real transactions. 17 Note: This section applies, for example, to a "payment" between Agencies 18 that are both part of the Commonwealth. One of the effects of this 19 section is that the payment will be debited from an appropriation for 20 the paying Agency, even though no payment is actually made from the 21 Consolidated Revenue Fund. 4 Appropriation (Tsunami Financial Assistance and Australia-Indonesia Partnership) Bill 2004-2005 No. , 2005


Basic appropriations Part 2 Section 6 1 2 Part 2--Basic appropriations 3 4 6 Summary of basic appropriations 5 The total of the items specified in Schedule 1 is $1,001,526,000. 6 Note 1: Items in Schedule 1 can be increased under Part 3 of this Act and 7 under section 13 of the Appropriation Act (No. 1) 2004-2005 (as 8 modified by section 11 of the Appropriation (Tsunami Financial 9 Assistance) Act 2004-2005). 10 Note 2: See also section 30A of the Financial Management and 11 Accountability Act 1997, which provides for adjustment of 12 appropriations to take account of GST. 13 7 Administered items--basic appropriation 14 (1) For an administered item for an outcome of an entity, the Finance 15 Minister may issue out of the Consolidated Revenue Fund amounts 16 that do not exceed, in total, the lesser of: 17 (a) the amount specified in the item; and 18 (b) the amount determined by the Finance Minister in relation to 19 the item, having regard to the expenses incurred by the entity 20 in the current year in relation to the item. 21 (2) An amount issued out of the Consolidated Revenue Fund for an 22 administered item for an outcome of an entity may only be applied 23 for expenditure for the purpose of carrying out activities for the 24 purpose of contributing to achieving that outcome. 25 Note: The acquisition of new administered assets will usually be funded 26 from an administered assets and liabilities item. 27 (3) A determination made under paragraph (1)(b) is not a legislative 28 instrument. 29 8 Administered assets and liabilities items--basic appropriation 30 (1) For an administered assets and liabilities item for an entity, the 31 Finance Minister may issue out of the Consolidated Revenue Fund Appropriation (Tsunami Financial Assistance and Australia-Indonesia Partnership) Bill 2004- 2005 No. , 2005 5


Part 2 Basic appropriations Section 9 1 amounts that do not exceed, in total, the amount specified in the 2 item. 3 (2) An amount issued out of the Consolidated Revenue Fund for an 4 administered assets and liabilities item for an entity may only be 5 applied for expenditure for the purpose of carrying out activities 6 for the purpose of contributing to achieving any outcome that is 7 specified in relation to the entity: 8 (a) in Schedule 1 to this Act; or 9 (b) in Schedule 1 to the Appropriation (Tsunami Financial 10 Assistance) Act 2004-2005; or 11 (c) in Schedule 2 to the Appropriation Act (No. 4) 2004-2005; or 12 (d) in Schedule 1 to the Appropriation Act (No. 3) 2004-2005; or 13 (e) in Schedule 2 to the Appropriation Act (No. 2) 2004-2005; or 14 (f) in Schedule 1 to the Appropriation Act (No. 1) 2004-2005. 15 9 Other departmental items--basic appropriation 16 (1) For an other departmental item for an entity, the Finance Minister 17 may issue out of the Consolidated Revenue Fund amounts that do 18 not exceed, in total, the amount specified in the item. 19 Note: Generally, the Finance Minister is permitted, but not obliged, to issue 20 the amounts out of the Consolidated Revenue Fund. However, 21 subsection (3) imposes an obligation on the Finance Minister to issue 22 the amounts in certain circumstances. 23 (2) An amount issued out of the Consolidated Revenue Fund for an 24 other departmental item may only be applied for the departmental 25 expenditure of the entity. 26 (3) If: 27 (a) an Act provides that an entity must be paid amounts that are 28 appropriated by the Parliament for the purposes of the entity; 29 and 30 (b) Schedule 1 contains an other departmental item for that 31 entity; 32 then the Finance Minister, under subsection (1), must issue out of 33 the Consolidated Revenue Fund the full amount specified in the 34 item. 6 Appropriation (Tsunami Financial Assistance and Australia-Indonesia Partnership) Bill 2004-2005 No. , 2005


Basic appropriations Part 2 Section 10 1 10 Reduction of appropriations upon request 2 (1) The Finance Minister may, upon written request by a Minister, 3 make a written determination under this section reducing an 4 administered assets and liabilities item or an other departmental 5 item for an entity for which the Minister is responsible by the 6 amount specified in the determination. 7 (2) The Finance Minister may, upon written request by the Chief 8 Executive of an entity for which the Finance Minister is 9 responsible, make a written determination under this section 10 reducing an administered assets and liabilities item or an other 11 departmental item for that entity by the amount specified in the 12 determination. 13 (3) Where a determination is made, the amount specified in the item is 14 taken to have been reduced by the amount specified in the 15 determination. 16 (4) However, a determination is of no effect if the determination has 17 not been requested under subsection (1) or (2). 18 (5) In addition, a determination reduces an amount specified in the 19 item only to the extent that the amount of the reduction is no 20 greater than the lesser of the following: 21 (a) the amount requested under subsection (1) or (2); 22 (b) the difference between the amount specified in the item and 23 the amount issued out of the Consolidated Revenue Fund by 24 the Finance Minister in respect of that item. 25 (6) For the purposes of paragraph (5)(b), an amount is not taken to 26 have been issued by the Finance Minister until the amount is paid 27 out of the Consolidated Revenue Fund. 28 (7) To avoid doubt, where a previous determination has been made in 29 relation to an item, the reference in paragraph (5)(b) to the amount 30 specified in the item is taken to be a reference to the amount 31 specified in the item as reduced by that previous determination and 32 any other previous determination. 33 (8) To avoid doubt, a determination under this section applies despite 34 any other provision of this Act. Appropriation (Tsunami Financial Assistance and Australia-Indonesia Partnership) Bill 2004- 2005 No. , 2005 7


Part 2 Basic appropriations Section 10 1 (9) A determination made under subsection (1) or (2) is a legislative 2 instrument and, despite subsection 44(2) of the Legislative 3 Instruments Act 2003, section 42 of that Act applies to the 4 determination. However, Part 6 of that Act does not apply to the 5 determination. 6 (10) A written request made under subsection (1) or (2) is not a 7 legislative instrument. 8 Appropriation (Tsunami Financial Assistance and Australia-Indonesia Partnership) Bill 2004-2005 No. , 2005


Additions to basic appropriations Part 3 Section 11 1 2 Part 3--Additions to basic appropriations 3 4 11 Advance to the Finance Minister 5 (1) This section applies if the Finance Minister is satisfied that: 6 (a) there is an urgent need for expenditure that is not provided 7 for, or is insufficiently provided for, in Schedule 1; and 8 (b) the additional expenditure is not provided for, or is 9 insufficiently provided for, in Schedule 1: 10 (i) because of an erroneous omission or understatement; or 11 (ii) because the additional expenditure was unforeseen until 12 after the last day on which it was practicable to provide 13 for it in the Bill for this Act before that Bill was 14 introduced into the House of Representatives. 15 (2) This Act has effect as if Schedule 1 were amended, in accordance 16 with a determination of the Finance Minister, to make provision for 17 so much (if any) of the additional expenditure as the Finance 18 Minister determines. 19 (3) The total of the amounts determined by the Finance Minister: 20 (a) under this section; and 21 (b) under section 13 of the Appropriation Act (No. 2) 2004-2005; 22 and 23 (c) under section 13 of the Appropriation Act (No. 4) 2004-2005; 24 cannot be more than $215 million. 25 (4) However, if: 26 (a) an amount determined by the Finance Minister under 27 section 13 of the Appropriation Act (No. 2) 2004-2005 is 28 recovered from an amount set out in Schedule 2 to the 29 Appropriation Act (No. 4) 2004-2005; or 30 (b) an amount determined by the Finance Minister under 31 section 13 of the Appropriation Act (No. 2) 2004-2005 or 32 section 13 the Appropriation Act (No. 4) 2004-2005 is 33 recovered from an amount set out in Schedule 1 to this Act; Appropriation (Tsunami Financial Assistance and Australia-Indonesia Partnership) Bill 2004- 2005 No. , 2005 9


Part 3 Additions to basic appropriations Section 11 1 the determined amount is to be disregarded for the purposes of 2 subsection (3). 3 (5) A determination made under subsection (2) is a legislative 4 instrument, but neither section 42 nor Part 6 of the Legislative 5 Instruments Act 2003 applies to the determination. 10 Appropriation (Tsunami Financial Assistance and Australia-Indonesia Partnership) Bill 2004-2005 No. , 2005


Miscellaneous Part 4 Section 12 1 2 Part 4--Miscellaneous 3 4 12 Crediting amounts to Special Accounts 5 If any of the purposes of a Special Account is a purpose that is 6 covered by an item (whether or not the item expressly refers to the 7 Special Account), then amounts may be debited against the 8 appropriation for that item and credited to that Special Account. 9 13 Appropriation of the Consolidated Revenue Fund 10 The Consolidated Revenue Fund is appropriated as necessary for 11 the purposes of this Act. Appropriation (Tsunami Financial Assistance and Australia-Indonesia Partnership) Bill 2004- 2005 No. , 2005 11


Schedule 1 Services for which money is appropriated Schedule 1--Services for which money is appropriated Note: See sections 6 and 13. Abstract Page Reference Portfolios Total $'000 16 Defence 488 17 Finance and Administration 94 18 Foreign Affairs and Trade 1,000,944 Total 1,001,526 12 Appropriation (Tsunami Financial Assistance and Australia-Indonesia Partnership) Bill 2004-2005 No. , 2005


Services for which money is appropriated Schedule 1 APPROPRIATIONS Appropriation (Tsunami Financial Assistance and Australia-Indonesia Partnership) Bill 2004- 2005 No. , 2005 13


Schedule 1 Services for which money is appropriated SUMMARY Supplementary Appropriation (bold figures) -- 2004-2005 Appropriation Act No. 2 and Appropriation Bill No. 4 (italic figures) -- 2004-2005 Specific Payments to New the States and Administered Non- Portfolio Territories Expenses operating Total $'000 $'000 $'000 $'000 Agriculture, Fisheries and Forestry - - - - 464,986 - 5,860 470,846 Continued Attorney-General's - - - - 95,908 - 114,038 209,946 Continued Communications, Information - - - - Technology and the Arts 1,125 - 29,292 30,417 Continued Defence - - 488 488 - - 375,498 375,498 Continued Veterans' Affairs - - - - 7,290 - 14,256 21,546 Continued Education, Science and Training - - - - - - 50,916 50,916 Continued Employment and Workplace Relations - - - - - - 26,516 26,516 Continued Environment and Heritage - - - - 29,938 - 25,900 55,838 Continued Family and Community Services - - - - 1,974,745 - 650 1,975,395 Continued Finance and Administration - - 94 94 - - 296,875 296,875 Continued Foreign Affairs and Trade - 1,000,830 114 1,000,944 - - 189,503 189,503 Continued Health and Ageing - - - - 1,083,570 - 60,644 1,144,214 Continued Immigration and Multicultural and - - - - Indigenous Affairs 2,140 - 72,491 74,631 Continued Industry, Tourism and Resources - - - - 51,930 - 172,628 224,558 Continued 14 Appropriation (Tsunami Financial Assistance and Australia-Indonesia Partnership) Bill 2004-2005 No. , 2005


Services for which money is appropriated Schedule 1 SUMMARY Supplementary Appropriation (bold figures) -- 2004-2005 Appropriation Act No. 2 and Appropriation Bill No. 4 (italic figures) -- 2004-2005 Specific Payments to New the States and Administered Non- Portfolio Territories Expenses operating Total $'000 $'000 $'000 $'000 Prime Minister and Cabinet - - - - - 50,000 7,682 57,682 Continued Transport and Regional Services - - - - 190,901 - 102,210 293,111 Continued Treasury - - - - 178,509 - 64,066 242,575 Continued Total: - 1,000,830 696 1,001,526 4,081,042 50,000 1,609,025 5,740,067 Appropriation (Tsunami Financial Assistance and Australia-Indonesia Partnership) Bill 2004- 2005 No. , 2005 15


Schedule 1 Services for which money is appropriated DEFENCE PORTFOLIO Supplementary Appropriation (bold figures) -- 2004-2005 Appropriation Act No. 2 and Appropriation Bill No. 4 (italic figures) -- 2004-2005 Actual Available Appropriation (light figures) -- 2003-2004 Specific Payments to New the States and Administered Territories Expenses Total $'000 $'000 $'000 DEPARTMENT OF DEFENCE Non-operating Equity Injections 488 375,498 706,334 Total: Department of Defence - - 488 16 Appropriation (Tsunami Financial Assistance and Australia-Indonesia Partnership) Bill 2004-2005 No. , 2005


Services for which money is appropriated Schedule 1 FINANCE AND ADMINISTRATION PORTFOLIO Supplementary Appropriation (bold figures) -- 2004-2005 Appropriation Act No. 2 and Appropriation Bill No. 4 (italic figures) -- 2004-2005 Actual Available Appropriation (light figures) -- 2003-2004 Specific Payments to New the States and Administered Territories Expenses Total $'000 $'000 $'000 HEALTH INSURANCE COMMISSION Non-operating Equity Injections 94 19,315 34,197 Total: Health Insurance Commission - - 94 Appropriation (Tsunami Financial Assistance and Australia-Indonesia Partnership) Bill 2004- 2005 No. , 2005 17


Schedule 1 Services for which money is appropriated FOREIGN AFFAIRS AND TRADE PORTFOLIO Supplementary Appropriation (bold figures) -- 2004-2005 Appropriation Act No. 2 and Appropriation Bill No. 4 (italic figures) -- 2004-2005 Actual Available Appropriation (light figures) -- 2003-2004 Specific Payments to New the States and Administered Territories Expenses Total $'000 $'000 $'000 AUSTRALIAN AGENCY FOR INTERNATIONAL DEVELOPMENT Operating Outcome 2 - Australia's national interest advanced by - 1,000,830 1,000,830 implementing a partnership between - - - Australia and Indonesia for reconstruction and - - - development Total: Operating - 1,000,830 1,000,830 Non-operating Administered Assets and Liabilities 114 92,559 209,049 Total: Non-operating 114 Total: Australian Agency for - 1,000,830 1,000,944 International Development 97,359 18 Appropriation (Tsunami Financial Assistance and Australia-Indonesia Partnership) Bill 2004-2005 No. , 2005


 


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