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2013-2014
THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA
HOUSE OF REPRESENTATIVES
APPROPRIATION (PARLIAMENTARY DEPARTMENTS) BILL (NO. 2)
2013-2014
EXPLANATORY MEMORANDUM
(Circulated by the authority of the Minister for Finance,
Senator the Honourable Mathias Cormann)
Table of Acronyms and Defined Terms
AI Act Acts Interpretation Act 1901
APO Advance to the responsible Presiding Officer
CRF Consolidated Revenue Fund
Finance Minister Minister for Finance
FMA Act Financial Management and Accountability Act 1997
FMA Regulations Financial Management and Accountability
Regulations 1997
GST Goods and Services Tax
LI Act Legislative Instruments Act 2003
PD Act (No. 1) Appropriation (Parliamentary Departments) Act
(No. 1) 2013-2014
Portfolio Portfolio Additional Estimates Statements and
Statements Portfolio Budget Statements
Explanatory Memorandum to Appropriation (Parliamentary Departments) Bill (No. 2) 2013-2014
House of Representatives 1
Outline
Appropriation (Parliamentary Departments)
Bill (No. 2) 2013-2014
General Outline
1 This Explanatory Memorandum accompanies Appropriation (Parliamentary
Departments) Bill (No. 2) 2013-2014 (the Bill). This is the first time a second
Parliamentary Departments Appropriation Bill for a financial year has been
introduced to the Parliament since 2004-2005.
2 The main purpose of the Bill is to propose appropriations from the
Consolidated Revenue Fund (CRF) for expenditure in relation to the
Parliamentary Departments in addition to amounts appropriated through the
Appropriation Acts that implemented the 2013-2014 Budget of the previous
Government.
3 Appropriations for the ordinary annual services of the Government must be
contained in a separate Bill from other appropriations in accordance with
sections 53 and 54 of the Australian Constitution. Consequently, the Bill proposes
appropriations for the Parliamentary Departments, which are not for the ordinary
annual services of the Government. Annual appropriations that are for the
ordinary annual services of the Government are proposed in Appropriation Bill
(No. 3) 2013-2014. Other annual appropriations that are not for the ordinary
annual services of the Government are proposed in Appropriation Bill (No. 4)
2013-2014. Together these three Bills are termed the Additional Estimates
Appropriation Bills.
4 The Portfolio Additional Estimates Statements are published and tabled in
the Parliament in relation to the Bill. This Explanatory Memorandum should be
read in conjunction with the various 2013-2014 Portfolio Statements (being the
Portfolio Budget Statements that accompanied the 2013-2014 Budget and the
Portfolio Additional Estimates Statements) for the Parliamentary Departments,
which contain details on the appropriations set out in Schedule 1 of the Bill.
Structure of appropriations in the Bill
5 The Bill provides for the appropriation of specified amounts for expenditure
by the Parliamentary Departments.
6 Part 1 of the Bill deals with definitions, the interpretative role of the
Portfolio Statements and the concept of notional payments.
7 Part 2 of the Bill proposes appropriations to make payments of the amounts
in Schedule 1 for departmental items (clause 7), administered items (clause 8),
administered assets and liabilities items (clause 9) and other departmental items
(clause 10).
Explanatory Memorandum to Appropriation (Parliamentary Departments) Bill (No. 2) 2013-2014
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Outline
8 Part 3 of the Bill specifies the ways in which the amounts in Schedule 1 may
be adjusted. In addition to the adjustment provisions in Part 3, clause 15 of the
Bill recognises that the appropriations in the Bill may also be varied by the
Financial Management and Accountability Act 1997 (FMA Act).
9 Part 4 of the Bill deals with miscellaneous items including matters relating
to Special Accounts and the appropriation of the Consolidated Revenue Fund.
Financial Impact
10 The Bill, if enacted, would appropriate the amounts specified in Schedule 1.
Explanatory Memorandum to Appropriation (Parliamentary Departments) Bill (No. 2) 2013-2014
House of Representatives 3
Statement of compatibility with human rights
Statement of compatibility with human rights
1 The Bill seeks to appropriate money for expenditure by the Parliamentary
Departments.
2 Accordingly, this Appropriation Bill performs an important constitutional
function, by authorising the withdrawal of money from the Consolidated Revenue
Fund for the broad purposes identified in the Bill.
3 However, as the High Court has emphasised, beyond this, the Appropriation
Acts do not create rights and nor do they, importantly, impose any duties.
4 Given that the legal effect of Appropriation Bills is limited in this way, the
Appropriation Bill is not seen as engaging, or otherwise affecting, the rights or
freedoms relevant to the Human Rights (Parliamentary Scrutiny) Act 2011.
5 Detailed information on the relevant appropriations, however, is contained
in the Portfolio Statements.
Explanatory Memorandum to Appropriation (Parliamentary Departments) Bill (No. 2) 2013-2014
House of Representatives 4
Notes on clauses
Notes on clauses
Part 1--Preliminary
Clause 1--Short title
1 This clause specifies that the short title of the Bill, once enacted, will be the
Appropriation (Parliamentary Departments) Act (No. 2) 2013-2014.
Clause 2--Commencement
2 Clause 2 provides for the Bill to commence as an Act on the day of the
Royal Assent.
Clause 3--Definitions
3 Clause 3 defines the key terms used in the Bill, such as "administered item",
"current year", and "departmental item". Each Parliamentary Department is an
Agency for the purposes of the Financial Management and Accountability
Act 1997 (FMA Act).
Clause 4--Portfolio Statements
4 Clause 4 declares that the Portfolio Statements are extrinsic material under
paragraph 15AB(2)(g) of the Acts Interpretation Act 1901 (AI Act) that may be
used to ascertain the meaning of certain provisions in accordance with
subsection 15AB(1) of the AI Act. Paragraph 15AB(2) of the AI Act effectively
provides that the material that may be considered in the interpretation of a
provision of an Act includes any document that is declared by the Act to be a
relevant document.
5 The purpose of the Portfolio Statements is to provide information on the
proposed allocation of resources to the outcomes of the Parliamentary
Departments. The Portfolio Statements provide information to enable Parliament
to understand the purpose of appropriations proposed in the Bill. The term
"Portfolio Statements" is defined in the Bill, at clause 3, to mean both the
Portfolio Budget Statements (that accompanied the Appropriation Bills tabled at
the last Budget) and the Portfolio Additional Estimates Statements (tabled with
this Bill).
Clause 5--Notional payments, receipts etc
6 Clause 5 ensures that payments between Agencies result in a debit from the
appropriation for the paying Agency. For example, the payments of the amounts
in Schedule 1 from one FMA Act Agency to another do not require, in a
constitutional sense, an appropriation because both Agencies operate within the
CRF. However, for reasons of financial discipline and transparency, the practice
has arisen for these payments between Agencies to be treated as though they
Explanatory Memorandum to Appropriation (Parliamentary Departments) Bill (No. 2) 2013-2014
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Notes on clauses
required an appropriation, and to debit an appropriation when such notional
payments are made. This is consistent with section 6 of the FMA Act.
7 Clause 5 provides that notional transactions between Agencies are to be
treated as if they are real transactions. Notional transactions, therefore, require the
use of a drawing right and the debiting of an appropriation made by Parliament.
When an FMA Act Agency makes a payment, whether to another FMA Act
Agency or another part of the same Agency (such as a different "business unit"
within the Agency), it is to be treated as a "real" payment.
8 This means that the appropriation made by Parliament is extinguished by the
amount of the notional payment, even though no payment is actually made from
the CRF. Similarly, a notional receipt in such a situation is to be treated by the
receiving Agency (where relevant) as if it were a real receipt. This does not mean
every internal transfer of public money involves a notional payment and receipt.
As explained in regulation 19 of the Financial Management and Accountability
Regulations 1997 (FMA Regulations), some transfers of public money, from one
official account to another, do not involve a notional payment or debiting an
appropriation.
Part 2--Appropriation items
Clause 6--Summary of appropriations
9 Clause 6 sets out the total of the appropriations in Schedule 1 of the Bill.
Importantly, the amounts in Schedule 1 may be adjusted under the provisions in
Part 3 of the Bill. In particular:
Departmental items, administered assets and liabilities items and other
departmental items may be reduced in accordance with clause 11;
Administered items may be reduced in accordance with clause 12; and
Each of these items may be increased by a payment from the advance to the
responsible Presiding Officer in accordance with clause 13.
10 The amounts in Schedule 1 of the Bill may be adjusted further in accordance
with sections 30, 30A, 31 and 32 of the FMA Act. Specifically:
Section 30 allows an Agency to re-credit to an appropriation that had been
relied upon for an initial payment by the Agency an amount equivalent to
the repayment. The re-crediting, or reinstatement, authorised by section 30
can result in the total amount paid from the CRF in gross terms exceeding
the amount specified in an item. Section 30 also applies to notional
transactions between and within Agencies.
Appropriations may be adjusted by amounts recoverable by a Parliamentary
Department from the Australian Taxation Office for Goods and Services
Tax (GST), in accordance with section 30A of the FMA Act. The amounts
specified in Schedule 1 exclude recoverable GST. The appropriations shown
Explanatory Memorandum to Appropriation (Parliamentary Departments) Bill (No. 2) 2013-2014
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Notes on clauses
represent the net amount that Parliament is asked to allocate to particular
purposes.
Section 30A has the effect of increasing an appropriation by the amount of
the GST qualifying amount arising from payments in respect of the
appropriation. As a result, there is sufficient appropriation for payments
under an appropriation item provided that the amount of those payments,
less the amount of recoverable GST, can be met from the initial amount
shown against the item in Schedule 1. Section 30A also applies to notional
transactions between and within Agencies.
Departmental items may be increased to take into account certain other
amounts received by a Parliamentary Department, if those receipts are
prescribed by the FMA Regulations, in accordance with section 31 of the
FMA Act.
Items may be adjusted to take into account the transfer of functions between
Agencies, in accordance with section 32 of the FMA Act. It is possible that
adjustments under section 32 may result in new items and/or outcomes
being created in an Appropriation Act. It might also result in amounts being
transferred between Appropriation Acts.
Clause 7--Departmental items
11 Clause 7 provides that the amount specified in a departmental item for a
Parliamentary Department may be applied for the departmental expenditure of the
Parliamentary Department. Clause 3 defines:
"departmental item" to be the total amount set out in Schedule 1 in relation
to a Parliamentary Department under the heading "Departmental"; and
"expenditure" to be payments for expenses, acquiring assets, making loans
or paying liabilities.
12 While the departmental items in Schedule 1 may be divided between
outcomes, the different amounts against outcomes are notional. The total
appropriation for departmental expenses represents the departmental item.
13 Departmental items involve costs over which a Parliamentary Department
has control. Departmental appropriations can be used to make any payment
related to the functions of the Parliamentary Department, including on purposes
covered by other items, whether or not they are in the Act for a Parliamentary
Department. Expenditure typically covered by departmental items includes
employee expenses, suppliers and other operational expenses (e.g. interest and
finance expenses).
14 Departmental items include amounts specifically to meet costs associated
with the acquisition and capitalised maintenance of existing departmental assets
valued at $10 million or less.
Explanatory Memorandum to Appropriation (Parliamentary Departments) Bill (No. 2) 2013-2014
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Notes on clauses
15 Departmental items are not expressed in terms of a particular financial year
and do not automatically lapse. Departmental items are available until they are
spent or reduced in accordance with clause 11 of this Bill. Because the cash to
meet expenses can be required at times other than when the expenses are incurred,
the departmental appropriations remain available until required.
16 The Finance Minister manages the payment from departmental items by the
Parliamentary Departments through the issuing of drawing rights in accordance
with sections 26 and 27 of the FMA Act. Drawing rights control who may spend
money from appropriations, and allow for conditions and limits to be set by the
Finance Minister (or the Finance Minister's delegate) in relation to those
activities.
17 Amounts appropriated for departmental items can be subject to a reduction
process in accordance with clause 11 of the Bill. Under clause 11, the responsible
Presiding Officer for a Parliamentary Department may make a written request
asking the Finance Minister to make a determination to reduce a Parliamentary
Department's departmental appropriation.
Clause 8--Administered items
18 Subclause 8(1) provides for the appropriation of administered expense
amounts to be applied by a Parliamentary Department for the purpose of
contributing to the outcome for an administered item. An administered item is
defined in clause 3 to be the amounts set out in Schedule 1 opposite an outcome
for a Parliamentary Department under the heading "Administered". These items
are appropriated separately for outcomes (i.e. unlike departmental items, the split
across outcomes is not notional), making it clear what the funding is intended to
achieve. Schedule 1 specifies how much can be expended on each outcome.
19 The appropriations for administered items in Schedule 1 represent the
amounts required to meet the total estimated expenses for the administered
outcomes for 2013-2014.
20 The purposes for which each administered item can be spent are further set
out in subclause 8(2). Subclause 8(2) provides that where the Portfolio Statements
indicate a particular activity is in respect of a particular outcome, then expenditure
on that activity is taken to be expenditure for the purpose of contributing to
achieving that outcome.
21 Administered expenses are those administered by a Parliamentary
Department. Specifically:
administered items are tied to outcomes (departmental items are not);
administered items must be spent in accordance with rules and conditions
established by Government or Parliament; and
there is a process in clause 12 for dealing with administered items that are
not fully expensed or spent during the financial year.
Explanatory Memorandum to Appropriation (Parliamentary Departments) Bill (No. 2) 2013-2014
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Notes on clauses
22 The Finance Minister manages payments from administered items by
Agencies through the issuing of drawing rights in accordance with sections 26
and 27 of the FMA Act. Drawing rights control who may spend money from
appropriations, and allow for conditions and limits to be set by the Finance
Minister (or the Finance Minister's delegate) in relation to those activities.
Clause 9--Administered assets and liabilities items
23 Clause 9 provides amounts in Schedule 1 to acquire new administered
assets, enhance existing administered assets and/or discharge administered
liabilities relating to activities administered by the Parliamentary Departments.
Administered assets and liabilities appropriations are provided for functions
managed by a Parliamentary Department. Administered assets and liabilities items
can also be applied for any outcomes of a Parliamentary Department.
24 Clause 11 ensures that Parliamentary Departments only have access to the
amount of appropriation required to fund activities in the year. Amounts
appropriated for administered assets and liabilities items can be subject to a
reduction process in accordance with clause 11 of the Bill. Under clause 11,
the responsible Presiding Officer for a Parliamentary Department may make a
written request to ask the Finance Minister to make a determination to reduce an
administered assets and liabilities item of a Parliamentary Department.
25 Where further Appropriation Bills can effect an appropriation reduction, for
example by reducing a proposed increase to appropriations, this approach may
also be taken to have reduced the appropriation.
26 The Finance Minister manages payments from administered assets and
liabilities items by Agencies through the issuing of drawing rights in accordance
with sections 26 and 27 of the FMA Act. Drawing rights control who may spend
money from appropriations, and allow for conditions and limits to be set by the
Finance Minister (or the Finance Minister's delegate) in relation to those
payments.
Clause 10--Other departmental items
27 Clause 10 appropriates departmental non-operating appropriations in the
form of equity injections, over which the Parliamentary Departments also exercise
control. This clause provides that the amount specified in other departmental
items for a Parliamentary Department may be applied for the departmental
expenditure of the Parliamentary Department. In short, "equity injections" can be
provided to Agencies to, for example, enable investment in assets to facilitate
departmental activities.Other departmental items are not expressed in terms of a
particular financial year and do not automatically lapse. Other departmental items
are available until they are spent or reduced in accordance with clause 11.
For example, equity injection appropriations provide funding for the full costs of
acquiring new assets some of which might not be incurred until a later financial
year. Amounts appropriated for another departmental item can be subject to a
reduction process in accordance with clause 11 of the Bill.
Explanatory Memorandum to Appropriation (Parliamentary Departments) Bill (No. 2) 2013-2014
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Notes on clauses
28 Where further Appropriation Bills can effect an appropriation reduction, for
example by reducing a proposed increase to appropriations, this approach may
also be taken to have reduced the appropriation.
29 The Finance Minister manages the payment from other department items by
Parliamentary Departments through the issuing of drawing rights in accordance
with sections 26 and 27 of the FMA Act. Drawing rights control who may spend
from appropriations, and allow for conditions and limits to be set by the Finance
Minister (or the Finance Minister's delegate) in relation to those payments.
Part 3--Adjusting appropriation items
Clause 11--Reducing departmental items, administered assets
and liabilities items and other departmental items
30 Departmental items, administered assets and liabilities items and other
departmental items remain available until the appropriations are spent or reduced
in accordance with clause 11. This clause enables surplus amounts to be reduced
to promote the efficient, effective and ethical management of any surplus
appropriations. Parliamentary Departments should only spend all of an
appropriation item if there are government decisions to support that expenditure.
31 Examples of where clause 11 may be appropriate to reduce one of these
items include:
an excessive amount of appropriation was made in error;
an amount is reclassified and appropriated again under another kind of
appropriation (e.g. where an amount appropriated as departmental is to be
reclassified as administered and a new administered appropriation is
provided). The existing departmental appropriation remains legally
available even though there is no government authority to spend the funds;
efficiency savings result in a programme costing less than expected; or
a programme is abolished under government policy before the appropriation
is expended.
32 Subclause 11(1) enables the responsible Presiding Officer for a
Parliamentary Department to ask the Finance Minister to reduce one of these
items for that Parliamentary Department. Subclause 11(6) notes that a request
under subclause 11(1) is not a legislative instrument within the meaning of
section 5 of the Legislative Instruments Act 2003 (LI Act), on the basis that it is
requesting a determination to be made and it is the determination that has
substantive effect.
33 Subclause 11(2) enables the Finance Minister to make a written
determination to reduce one of those items. The Finance Minister is not obliged to
act on a request to reduce excess appropriations. However, if the Finance Minister
does:
Explanatory Memorandum to Appropriation (Parliamentary Departments) Bill (No. 2) 2013-2014
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Notes on clauses
the determination must be for the amount specified in the request:
subclause 11(2);
the determination may not reduce the item below nil: subclause 11(3); and
the item will be taken to be reduced in accordance with the determination of
the Finance Minister: subclause 11(4).
34 Subclause 11(5) provides that once a determination is made under
subclause 11(2), it must not be rescinded, revoked, amended or varied, other than
to correct an error. Subclause 11(5) applies despite subsection 33(3) of the AI Act.
This subclause intends to exclude the operation of subsection 33(3) of the AI Act,
which would otherwise allow the Minister to repeal, rescind, revoke, amend or
vary any such instrument from determinations made under subclause 11(2). The
purpose of subclause 11(5) is to ensure that the departmental item appropriation,
when reduced under subclause 11(2), cannot be restored by means of a later
determination.
35 Subclause 11(7) provides that a determination made under subclause 11(2)
is a legislative instrument.
36 Despite subsection 44(2) of the LI Act, which provides that instruments
made under annual Appropriation Acts are not subject to disallowance,
subclause 11(7) provides that a determination reducing a departmental item under
subclause 11(2) is subject to disallowance in accordance with section 42 of the
LI Act. Parliament retains the power to disallow a determination to reduce a
departmental item because any such determination will reduce the amount of an
appropriation authorised by Parliament. Subclause 11(7) also confirms
subsection 54(2) of the LI Act, which provides that instruments made under
annual Appropriation Acts are not subject to sunsetting.
Clause 12--Reducing administered items
37 Clause 12 provides for amounts of administered items not required after the
end of the current year to be extinguished. If the government then decides that
amounts should be spent in a later financial year, the government must request
Parliament to appropriate these amounts in future Appropriation Bills.
38 Clause 12 limits the amount that may be applied for an administered item to
the amount reported for that item in a Parliamentary Department's annual report.
Subclause 12(1) provides that if the amount published in the annual report is less
than the amount of the item, then the administered item is taken to be reduced to
the amount specified in the annual report. The amount of the item specified in
Schedule 1 of the Bill may be increased or reduced by the other clauses of Part 3
of the Bill or in accordance with sections 30, 30A and 32of the FMA Act. The
amount in the annual report must therefore be compared with the amount for the
item in Schedule 1, together with any other adjustments that have been made to
that amount.
Explanatory Memorandum to Appropriation (Parliamentary Departments) Bill (No. 2) 2013-2014
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Notes on clauses
39 Subclause 12(2) retains a power for the Finance Minister to determine that
an amount published in the financial statements of a Parliamentary Department is
taken to be the amount specified in the Minister's determination. The power in
paragraph 12(2)(b) is to ensure that the amount published for the administered
item can be corrected if, for example, the amount is erroneous or requires
updating after the annual report is published.
40 Subclause 12(3) provides that a determination made under subclause 12(2)
is a legislative instrument.
41 Despite subsection 44(2) of the LI Act, which provides that instruments
made under annual Appropriation Acts are not subject to disallowance,
subclause 12(3) provides that a determination regarding an administered item is
subject to disallowance in accordance with section 42 of the LI Act. Parliament
retains the power to disallow a determination to reduce an administered item,
because any such determination will reduce the amount of an appropriation
authorised by Parliament. Subclause 12(3) also confirms subsection 54(2) of the
LI Act, which provides that instruments made under annual Appropriation Acts
are not subject to sunsetting.
Clause 13--Advance to the responsible Presiding Officer
42 Section 13 of the Appropriation (Parliamentary Departments) Act (No. 1)
2013-2014 (PD Act (No. 1)) enables the responsible Presiding Officer to provide
additional appropriations for items when satisfied there is an urgent need for that
expenditure, and the existing appropriation is inadequate1. This additional
appropriation is referred to as the Advance to the responsible Presiding Officer
(APO). Subsections 13(3) to 13(6) of PD Act (No. 1) provide the total amounts
that can be determined under the APO provision.
43 Clause 13 of the Bill provides that irrespective of the amounts issued from
the APO before the commencement of the Bill, the amount available under
section 13 of PD Act (No. 1) will be restored to the original amounts. The
provision has been added to the Bill to ensure that there will be sufficient scope to
provide amounts from the APO for the remainder of the financial year.
44 Subclause 13(1) specifies that if the responsible Presiding Officer has
determined under subsection 13(2) of PD Act (No. 1) to increase an amount in
Schedule 1 of Act No. 1 from the APO, then that amount is to be disregarded
when the Bill commences. From the date this Bill commences as an Act the total
amounts that can be determined under the APO will again be:
(a) for the Department of the Senate--$300,000;
(b) for the Department of the House of Representatives--$300,000;
1
Under the APO guidelines, expenditure is urgent if required within two weeks. The guidelines
are available at:
http://www.finance.gov.au/budget/budget-process/advance-to-finance-minister.html.
Explanatory Memorandum to Appropriation (Parliamentary Departments) Bill (No. 2) 2013-2014
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Notes on clauses
(c) for the Department of Parliamentary Services--$1 million; and
(d) for the Parliamentary Budget Office--$300,000.
45 Subclause 13(2) prevents appropriations for the same expenditure from both
the APO and the Bill. Subclause 13(2) ensures that if Schedule 1 of the Bill
provides an amount for a particular expenditure and, prior to the commencement
of the Bill, the responsible Presiding Officer determines an amount from the APO
under section 13 of PD Act (No. 1) for the same expenditure (the advanced
amount), then the appropriation in the Bill will be reduced by the amount of the
advanced amount. The appropriated amount cannot be reduced below nil.
46 For example if the Bill provides $20 million for a programme and an
advanced amount of $5 million is determined by the responsible Presiding Officer
under PD Act No. 1 for a particular payment under that programme, then the
amount appropriated by the Bill, once enacted, will be reduced by $5 million (i.e.
appropriating only $15 million for the programme).
47 The responsible Presiding Officer may continue to make determinations
under subsection 13(2) of PD Act (No. 1) to add an amount from the AFM to an
item of an Agency if the criteria in subsection 13(1) of that Act are satisfied.
48 The Bill provides the responsible Presiding Officer for the Parliamentary
Budget Office is the President of the Senate and the Speaker of the House of
Representatives, which aligns with the process that applies to the Department of
Parliamentary Services.
Part 4--Miscellaneous
Clause 14--Crediting amounts to Special Accounts
49 Clause 14 provides that if the purpose of an item in Schedule 1 is also the
purpose of a Special Account (regardless of whether the item expressly refers to
the Special Account), then amounts may be debited against the appropriation for
that item and credited to the Special Account. Special Accounts may be
established under the FMA Act by a determination of the Finance Minister
(section 20) that is disallowable by Parliament or another Act (section 21). The
determination or Act that establishes the Special Account will specify the
purposes of the Special Account.
Clause 15--Appropriation of the Consolidated Revenue Fund
50 Clause 15 provides that the CRF is appropriated as necessary for the
purposes of the Bill. Significantly, this clause means that there is an appropriation
in law when the Act commences. That is, the appropriations are not made or
brought into existence just before they are paid, but when the Royal Assent is
given. This clause indicates that the amounts appropriated by the Bill may be
affected by the FMA Act, in particular sections 30, 30A, 31 and 32 of the FMA
Act (see clause 6), after the Bill receives the Royal Assent.
Explanatory Memorandum to Appropriation (Parliamentary Departments) Bill (No. 2) 2013-2014
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Notes on clauses
Schedule 1--Services for which money is appropriated
51 Schedule 1 specifies the services of the Parliamentary Departments for
which amounts will be appropriated. Schedule 1 contains a summary table which
lists the total amounts for the Parliamentary Departments and separate tables
detailing the appropriations for each Parliamentary Departments.
52 Schedule 1 includes, for information purposes, the amount appropriated in
PD Act (No. 1), which is printed in italics and labelled as "Budget
Appropriation". The amount printed as the Budget Appropriation is an estimate
that does not affect the amount available at law.
53 Schedule 1 also includes, for information purposes, a figure for the previous
financial year printed in light figures labelled the "Actual Available
Appropriation". That figure provides a comparison with the proposed
appropriations. It is calculated for each item by adding the amounts appropriated
in the previous year's annual Appropriation Acts, amounts adjusted under certain
provisions of the FMA Act plus adjustments such as AFMs and reductions by the
Finance Minister. In some instances the figure may also be affected by limits
applied administratively by the Department of Finance. The Actual Available
Appropriation is an estimate that does not affect the amount available at law.
54 More details about the appropriations in Schedule 1 are contained in the
Portfolio Statements and the second reading speech for the Bill.
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