Introductory Info
Date introduced: 25 July 2019
House: House of Representatives
Portfolio: Finance
Commencement: The Bills commence on Royal Assent.
Purpose of
the Bill
This Bills Digest refers to three Bills (jointly referred
to as the Appropriation Bills).
The purpose of the Appropriation
Bill (No. 1) 2019–2020 (the No. 1 Bill) is to propose appropriations
from the Consolidated Revenue Fund (CRF) of $58,404,241,000 ($58.4 billion). This
is broadly equivalent to 7/12ths of the estimated 2019–20 annual appropriations
for the ordinary annual services of Government. The balance of the appropriations
for the ordinary annual services of the Government for the 2019–20 financial
year was contained in the Supply Act (No. 1)
2019–2020 (the No. 1 Supply Act) which received Royal Assent on
4 April 2019.[1]
Of the appropriations proposed in the No. 1 Bill:
- $34,096,306,000
($34.1 billion) is for the departmental activities of government entities and
- $24,307,935,000
($24.3 billion) is for activities that government entities administer on behalf
of the Commonwealth Government.
The purpose of the Appropriation
Bill (No. 2) 2019–2020 (the No. 2 Bill) is to propose appropriations in
the amount of $7,420,961,000 ($7.4 billion) from the CRF. This is broadly
equivalent to 7/12ths of the 2019–20 annual appropriations that are not for the
ordinary annual services of the Government for 2019–20. The balance of the appropriations
for the other services of Government for the 2019–20 financial year was
contained in the Supply
Act (No. 2) 2019–2020 (the No. 2 Supply Act) which received
Royal Assent on 4 April 2019.[2]
Of the appropriations proposed in the No. 2 Bill:
- $433,618,000
($433.6 million) is for payments to states, ACT and NT and local governments and
- $6,987,343,000
($7.0 billion) is for non-operating activities.
The purpose of Appropriation
(Parliamentary Departments) Bill (No. 1) 2019–2020 (Parliamentary
Departments Bill) is to propose appropriations in the amount of $160,839,000
($160.8 million) from the CRF for expenditure related to parliamentary
departments. This is broadly equivalent to 5/12ths of the estimated 2019–2020
annual appropriations for expenditure in relation to the parliamentary departments.
The balance of the annual appropriations for the parliamentary departments for
2019–2020 was contained in the Supply
(Parliamentary Departments) Act (No. 1) 2019–2020 (the Parliamentary
Departments Supply Act).[3]
Of the appropriations proposed in the Parliamentary
Departments Bill:
- $117,071,000
($117.1 million) is for the activities of parliamentary departments
- $8,171,000
($8.2 million) is for the administrative functions of parliamentary departments
and
- $35,597,000
($35.6 million) is for the non-operating expenses of the Department of
Parliamentary Services.
History of the Bills
Versions of the Appropriation Bills
were previously introduced into the House of Representatives on
2 April 2019 but lapsed at the dissolution of the 45th Parliament.[4]
The current Bills are largely the same as those introduced
in the last Parliament, but take account of changes to the Administrative Arrangements
Order, which has the effect of shifting some ministerial responsibilities and
some funding between portfolios, and the inclusion of amounts for decisions
taken since the introduction of the lapsed Bills.
Structure of
the Bills
Part 1 of each Bill deals with preliminary matters,
including when the Acts commence, and how to interpret the Acts.
Part 2 of each Bill outlines the quantum and types of
appropriation from the CRF.
Part 3 of the No. 1 and No. 2 Bill establish the Advance
to the Finance Minister (AFM) for 2019–2020, whereas Part 3 of the
Parliamentary Departments Bill establishes the Advance to the responsible
Presiding Officer for 2019–2020.
Part 4 of both the No. 1 Bill and the Parliamentary
Departments Bill and Part 5 of the No. 2 Bill deal with technical matters
including crediting amounts to special accounts, the formal appropriation of
moneys from the CRF, and the subsequent automatic repeal of the Acts.
Part 4 of the No. 2 Bill sets the maximum amounts that can
be drawn each year from the CRF for three types of grant to the states and
territories that the Commonwealth may make. These limits are known as ‘debit
limits’.
Schedule 1 of the No. 2 Bill nominates the Ministers who
are able to impose conditions on grants of financial assistance to the states
and territories proposed in that Bill.
Schedule 1 of the No. 1 Bill and the Parliamentary
Departments Bill and Schedule 2 of the No. 2 Bill contain the details of the
amounts and types of appropriation to be made to each entity.
Background
About
appropriations
An appropriation is the legal release of monies from the
Consolidated Revenue Fund (CRF).[5]
Appropriation Acts, however, do not create a source of power for the
Commonwealth to spend money; they merely release that money from the CRF. The
Commonwealth’s power to spend money must be found in other parts of the Australian Constitution.[6]
Under the terms of the Constitution, there are
certain unique requirements that a Bill proposing to appropriate monies from
the CRF must satisfy.
Constitutional
requirements
Section 81 of the Constitution provides:
All revenues or moneys raised or received by the Executive
Government of the Commonwealth shall form one Consolidated Revenue Fund, to be
appropriated for the purposes of the Commonwealth ...[7]
Section 83 of the Constitution provides that no
money may be withdrawn from the CRF ‘except under appropriation made by law’.
The effect of these two sections is that all moneys received by the
Commonwealth must be paid into the CRF, and must not be spent before there is
an appropriation authorising specific expenditure.
Powers of the House of Representative to appropriate
Section 53 of the Constitution provides that laws
appropriating money may not originate in the Senate.[8]
Further, under section 56 of the Constitution, all proposed laws for the
appropriation of money may only be introduced following a recommendation by the
Governor-General. By convention the Governor-General acts only upon the advice
of the Executive, so in practice section 56 prevents non-government
members of the House of Representatives introducing Bills that would propose to
appropriate money from the CRF.[9]
Powers of the Senate to amend
The Senate may not amend proposed laws appropriating
revenue or moneys for the ordinary annual services of the Government. The
Senate may, however, return to the House of Representatives any such proposed
laws requesting, by message, the omission or amendment of any items or
provisions.[10]
The Senate may amend proposed laws appropriating revenue
for purposes other than for the ordinary annual services of the Government, as
long as it does not ‘increase any proposed charge or burden on the people’.[11]
Conceivably, the Senate could amend an appropriation Bill for the other
services of Government so as to, for example, redirect the proposed
appropriation to another purpose, or reduce the proposed appropriation to nil.
The Senate may also request that, if new measures are included in a Bill for the
‘ordinary annual services of Government’, the Bill be returned to the House
with a message requesting those new measures be omitted from the Bill.
The ‘ordinary annual services of government’ versus the
‘other’ services of government
Section 54 of the Constitution requires that there
be a separate law appropriating funds for the ‘ordinary annual services of
government’, and that other matters must not be dealt with in the same Bill.
However, what constitutes the ‘ordinary annual services of the Government’ and
‘other’ services of the Government is not defined in the Constitution.
A working distinction between ordinary and other annual
services was agreed in a ‘Compact’ between the Senate and the Government in
1965.[12]
Several amendments have been made to the Compact since 1965, and in 2010 the
Senate Standing Committee on Appropriations and Staffing recommended the Senate
restate the Compact in a consolidated form.[13]
On 22 June 2010, the Senate resolved as follows:
(1) To
reaffirm its constitutional right to amend proposed laws appropriating revenue
or moneys for expenditure on all matters not involving the ordinary annual
services of the Government.
(2) That appropriations for expenditure on:
(a) the construction of public works and
buildings;
(b) the acquisition of sites and buildings;
(c) items
of plant and equipment which are clearly definable as capital expenditure (but
not including the acquisition of computers or the fitting out of buildings);
(d) grants to the states under section 96 of
the Constitution;
(e) new policies not previously authorised by
special legislation;
(f) items regarded as equity injections and
loans; and
(g) existing asset replacement (which is to be
regarded as depreciation),
are not appropriations for the ordinary annual services of
the Government and that proposed laws for the appropriation of revenue or
moneys for expenditure on the said matters shall be presented to the Senate in
a separate appropriation bill subject to amendment by the Senate.
(3) That, in respect of payments to international
organisations:
(a) the
initial payment in effect represents a new policy decision and therefore should
be in Appropriation Bill (No. 2); and
(b) subsequent
payments represent a continuing government activity of supporting the
international organisation and therefore represent an ordinary annual service
and should be in Appropriation Bill (No. 1).
(4) That
all appropriation items for continuing activities for which appropriations have
been made in the past be regarded as part of ordinary annual services.[14]
Adherence to the Compact has not always been strict, and
the High Court has held that any disagreements between the Houses are not
justiciable.[15]
Any disputes are to be determined between the Houses themselves.
Departmental and administered expenses
Australian Accounting Standard 1050 Administered Items
requires that government agencies distinguish between revenues and expenses
that they administer for the Government, and those over which they have some
control.[16]
Generally, administered expenses are the costs of programs that agencies run
for the Government, while departmental expenses are the costs incurred in
running agencies.[17]
Appropriation Bills, therefore, distinguish between
‘administered’ expenses and ‘departmental’ expenses. An administered
appropriation may be used only for the program or outcome that it is
appropriated for, while a departmental appropriation may be moved between
different departmental activities.[18]
Outcomes and programs
While the level of detail necessary for an Appropriation
Act to be valid is generally low,[19]
in the Pharmaceutical Benefits case the High Court held:
... there cannot be appropriations in blank, appropriations for
no designated purpose, merely authorising expenditure ...[20]
The Appropriation Bills must, therefore, also describe—in
general terms—what the moneys are to be utilised for. The Bills use four
methods for describing the purposes of the proposed appropriations.
Appropriations for ‘outcomes’ of non-corporate Commonwealth
entities
For non-corporate Commonwealth entities, the purposes of
operating appropriations (both departmental and administered) are specified
with reference to the ‘outcomes’ of those entities. In 2018, the Department of
Finance explained ‘outcome statements’ in the following terms:
... outcome statements articulate Government objectives and
form an integral part of the appropriations framework. They:
1. explain
the purpose for which annual appropriations are approved by the Parliament for
use by entities;
2. provide a basis for budgeting and reporting against
the use of appropriated funds; and
3. measure
and assess entity and program non-financial performance in contributing to
Government objectives.
An outcome statement should provide an immediate impression
of what success looks like.[21]
Outcome statements, therefore, tend to be aspirational in
nature.
Appropriations for corporate Commonwealth entities
As corporate Commonwealth entities are legally distinct
from the Commonwealth itself, money cannot be appropriated directly to those
entities.[22]
Instead, amounts are appropriated to relevant Departments for on-payment to
corporate Commonwealth entities within Departments’ portfolios.
Non-operating appropriations
Non-operating appropriations are amounts designated for
the capital needs of entities. Typically, these amounts are equity injections
into entities, or monies for the purchase or development of the assets of
entities. Under the Compact, they can only ever be proposed in a Bill dealing
with the ‘other’ annual services of Government.
Appropriations for payments to the states
Under section 96 of the Constitution, the
Commonwealth may make payments to the states with or without conditions, and
amounts intended for payments to the states are identified separately. Again,
because of the Compact, amounts to the states can only ever be proposed in a
Bill dealing with the ‘other’ annual services of Government. Amounts to the
Australian Capital Territory and the Northern Territory are also included with
the amounts for the states.
Appropriations for the Parliament and the Judiciary
In 1981, the Senate Select Committee on Parliament’s
Appropriations and Staffing considered the appropriations for the Parliament, in
view of the unique constitutional position of the Parliament vis-à-vis the
Executive. The Committee noted section 53 of the Constitution’s
reference to the ‘ordinary annual services of the Government’ before observing:
... the Parliament may be ordinary; it may be annual; it may
even be regarded as a service; but it is not a service of the Government. It is
therefore inconsistent with the concept of the separation of powers and the
supremacy of Parliament to treat the provisions made for the Parliament as
being an ordinary annual service of the Government.[23]
The Committee recommended:
... all items of expenditure administered by the Executive
departments on behalf of the Parliament be brought together in [a]
Parliamentary Appropriation Bill ...[24]
Since 1982, the appropriations for the Parliamentary
departments have been provided for via a distinct Appropriation Bill.
Quarantining appropriations in this way only applies to
the Parliamentary departments (of which there are currently four).[25]
It does not extend to other aspects of the finances of the Parliament, such as
providing for the remuneration and allowances of parliamentarians.
Despite the fact that, under the Constitution, the
Judiciary is also distinct from the Executive, there is no equivalent practice
whereby the Judiciary is provided for via a distinct Appropriation Bill.
Supply Acts
A Supply Act generally provides for interim appropriations
out of the Consolidated Revenue Fund to fund the core activities of the
government until the passage of the annual Appropriation Bills. The use of
Supply Acts was a common occurrence from Federation until 1993, as the practice
of successive Commonwealth governments was to deliver the Budget and table the
annual Appropriation Bills after the commencement of the financial year on 1
July. Since 1994, however, the Commonwealth has generally delivered the Budget
and tabled the annual Appropriation Bills in May, prior to the commencement of
the next financial year.[26]
2019
election
Supply Bills were introduced into Parliament on 2 April
2019. The need for Supply Acts in that case arose because of the timing of the
2019 Federal Election on 18 May 2019, which necessitated that the Budget be
brought forward to 2 April 2019.[27].
In that case, the Supply Acts provide a legal
appropriation of 5/12ths of the annual funding required in 2019–20. This
package of Appropriation Bills provides the remaining 7/12ths of funding for
the remainder of the 2019–20 budget year.
Advances to
the Finance Minister and the Presiding Officers
The Advance to the Finance Minister or responsible
Presiding Officers of Parliamentary Departments is an appropriation of moneys
without any particular outcome or purpose specified. For the 2019-20 financial
year, the Advances were initially established in the Supply Acts[28]
and are re-stated in the Appropriation Bills.
The Finance Minister or Presiding Officers may use the
amount appropriated as an advance to modify the schedule to the Appropriation
Act, but only where:
... the Finance Minister [or Presiding Officer] is satisfied
that there is an urgent need for expenditure, in the current year, that is not
provided for, or is insufficiently provided for, [...]:
(a) because of an erroneous omission or understatement; or
(b) because
the expenditure was unforeseen until after the last day on which it was
practicable to provide for it in the Bill for this Act before that Bill was
introduced into the House of Representatives.[29]
The amount of appropriation allocated to the advance to
the Finance Minister in 2019-20 is $295 million for the ordinary annual
services of the Government;[30]
and $380 million in relation to the other annual services of the Government.[31]
For the Presiding Officers of the Parliament, the amounts
of appropriation proposed to be allocated to the advance in 2019–20 are:
- $300,000 each in relation to the:
- Department
of the Senate
- Department
of the House of Representatives and
- Parliamentary
Budget Office and
- $1,000,000 in relation to the Department of
Parliamentary Services.[32]
Both the Supply Acts for 2019–20 and the current
Appropriation Bills specify that the total amount able to be accessed under
each Advance cannot be more than the amounts set out above.[33]
In order to access an advance, the Finance Minister or
Presiding Officers, as the case may be, must issue a determination under the
relevant Appropriation Act. A determination is a legislative instrument, but
disallowance and sunsetting under section 42 and Part 4 of Chapter 3 of the Legislation Act
2003 respectively do not apply.[34]
Debit limits
In addition to appropriating moneys for the other annual
services of the Government, Part 4 of the No. 2 Bill also sets a maximum
amount—known as a ‘debit limit’—that may be provided to the states and
territories under two specific grant programs.
The legal appropriation for the two grant programs is
provided by the special appropriation in section 80 of the Public Governance,
Performance and Accountability Act 2013 (PGPA Act) which
provides a standing appropriation for debits from special accounts. However,
the design of the legislative schemes associated with each of the grant
programs requires that the maximum annual amount that may be debited under each
program each year is to be set in an annual appropriation Bill.
Because the Compact prevents the No. 1 Bill from dealing
with grants to the states and territories, the debit limits are set in the No.
2 Bill.
Committee
consideration
Senate
Standing Committee for the Scrutiny of Bills
The Senate Standing Committee for the Scrutiny of Bills
(the Scrutiny Committee) considered the three appropriation Bills in its
Scrutiny Digest of 31 July 2019.[35]
The Scrutiny Committee made comments in relation to the No. 1 and No. 2 Bills
which are discussed below. The Scrutiny Committee had no comment on the
Parliamentary Departments Bill.[36]
Scrutiny Committee
comments on the No. 1 Bill
The Scrutiny Committee raised concerns that the No. 1 Bill
seeks to appropriate money for new measures which may have been inappropriately
classified as ordinary annual services of Government. These measures are:
- Agriculture
Stewardship Package ($34 million over four years)
- Local
School Community Fund ($30.2 million in 2019–20) and
- National
Centre for Coasts, Environment and Climate ($25 million over four years).[37]
It stated that this inappropriate classification
undermines the Senate’s constitutional right to amend laws appropriating money
which are not related to the ordinary annual services of Government and noted
that it has previously raised these concerns with the Finance Minister.
The committee has previously written to the Minister for
Finance in relation to inappropriate classification of items in other
appropriation bills on a number of occasions; however, the government has consistently
advised that it does not intend to reconsider its approach to the
classification of items that constitute the ordinary annual services of the
government.
The committee again notes that the government's approach to
the classification of items that constitute ordinary annual services of the
government is not consistent with the Senate resolution of 22 June 2010.
The committee notes that any inappropriate classification of
items in appropriation bills undermines the Senate's constitutional right to
amend proposed laws appropriating revenue or moneys for expenditure on all
matters not involving the ordinary annual services of the government. Such
inappropriate classification of items impacts on the Senate's ability to
effectively scrutinise proposed appropriations as the Senate may be unable to
distinguish between normal ongoing activities of government and new programs or
projects.
The committee draws this matter to the attention of senators
as it appears that the initial expenditure in relation to certain items in the
latest set of appropriation bills may have been inappropriately classified as
ordinary annual services (and therefore improperly included in Appropriation
Bill (No. 1) 2019-2020 which should only contain appropriations that are not amendable
by the Senate).[38]
The Scrutiny Committee also raised concerns that the
Advance to Finance Minister provided by the No. 1 Bill (up to $295 million)
allows the Finance Minister to allocate additional funds to entities by
delegated legislation which is not disallowable.[39]
The committee notes that clause 10 (the AFM provision) allows
the Finance Minister to allocate additional funds to entities up to a total of
$295 million via non-disallowable delegated legislation and that it therefore
delegates significant legislative power to the Executive. While this does not
amount to a delegation of the power to create a new appropriation, one of the
core functions of the Parliament is to authorise and scrutinise proposed
appropriations. High Court jurisprudence has emphasised the central role of the
Parliament in this regard. In particular, while the High Court has held that an
appropriation must always be for a purpose identified by the Parliament, '[i]t
is for the Parliament to identify the degree of specificity with which the
purpose of an appropriation is identified'. The AFM provision in this bill
leaves the allocation of the purpose of certain appropriations in the hands of
the Finance Minister, rather than the Parliament.[40]
Scrutiny Committee
comments on the No. 2 Bill
In relation to the No. 2 Bill, the Committee noted that
the debit limits set in clause 13 for grants for general purpose financial
assistance and for National Partnership Payments (NPPs) to the states were
substantial and were significantly more than the forecast expenditure.[41]
The Committee drew this matter to the attention of senators.
The committee draws its scrutiny concerns to the attention of
senators and leaves to the Senate as a whole the appropriateness of setting
debit limits for these grant programs well above the expected level of
expenditure, noting that this practice appears to undermine the effectiveness
of the debit limit regime as a mechanism for ensuring meaningful parliamentary
oversight of these grant programs.[42]
Financial
implications
The No. 1 Bill proposes to appropriate approximately $58.4 billion from the CRF. The No. 2 Bill proposes to
appropriate approximately $7.4 billion from the CRF. The Parliamentary
Departments Bill proposes to appropriate approximately $160.8 million from the
CRF.
The total amount of money proposed to be appropriated by
the three Bills is approximately $66.0 billion, representing approximately
7/12ths of the amounts proposed to be appropriated for 2019-20.
Statement of Compatibility with Human Rights
As required under Part 3 of the Human Rights
(Parliamentary Scrutiny) Act 2011 (Cth), the Government has assessed all
three Bill’s compatibility with the human rights and freedoms recognised or
declared in the international instruments listed in section 3 of that Act. In
relation to the human rights implications of the Bills, the Government states:
The Bill seeks to appropriate money for the ordinary annual
services of the Government [or services that are not considered to be ordinary
annual services, or for expenditure by the Parliamentary Departments].
Accordingly, the Bill performs an important constitutional
function, by authorising the withdrawal of money from the CRF for the broad
purposes identified in the Bill.
However, as the High Court has emphasised, beyond this,
Appropriation Acts do not create rights and nor do they, importantly, impose
any duties.
Given that the legal effect of Appropriation Bills is limited
in this way, the Bill is not seen as engaging, or otherwise affecting, the
rights or freedoms relevant to the Human Rights (Parliamentary Scrutiny) Act
2011.
Detailed information on the relevant appropriations, however,
is contained in the portfolio statements.[43]
Parliamentary
Joint Committee on Human Rights
The Parliamentary Joint Committee on Human Rights (PJCHR)
considered the Appropriation Bills in its Scrutiny Digest of 10 September 2019.
The PJCHR has repeatedly raised concerns about whether or not the allocation of
funding proposed in Appropriation Bills might engage human rights
considerations; particularly given the capacity for Appropriation Bills to give
effect to a reduction in funding for programs that might be aimed at the
realisation of human rights.[44]
The PJCHR has recommended that statements of compatibility
for Appropriation Bills should contain an assessment of overall trends in the
realisation of economic, social and cultural rights including any retrogressive
measures, the impact of Budget measures on vulnerable groups and key individual
Budget measures which engage human rights, including a brief assessment of
their human rights compatibility.[45]
Despite the views of the PJCHR, the Department of Finance
advised that it would not be substantially changing its approach to statements
of compatibility for Appropriation Bills.[46]
Key issues
and provisions
No. 1 Bill
Clauses 6–9 of the No. 1 Bill outline the quantum and types
of appropriation from the CRF.
Clause 10 of the No. 1 Bill establishes the Advance
to the Finance Minister of $295 million for 2019–2020.
Clauses 11–13 of the No. 1 Bill provide for several
technical matters, including, amongst other things, details relating to special
accounts and formally appropriating the amounts required from the CRF.
Schedule 1 of the No. 1 Bill provides details about
the appropriations to both non-corporate entities and to corporate entities as
defined by the PGPA Act.
Table 1 below sets out in summary form the amount of
appropriations in Schedule 1 to the No. 1 Bill, as well as the
amounts in the No. 1 Supply Act and the total appropriations for
2019–20. These amounts are compared to the actual available appropriation in
2018–19.
Table 1: Total Appropriation for 2019–20
Portfolio |
Appropriation in
Appropriation
Bill (No. 1) 2019–
2020 |
Appropriation in
Supply
Act
(No. 1) 2019–
2020 |
Total 2019–20
Appropriation |
Actual Available
Appropriation
2018–2019[47] |
|
$’000 |
$’000 |
$’000 |
$’000 |
Agriculture |
524,901 |
343,701 |
868,602 |
999,138 |
Attorney‑General’s |
1,122,979 |
535,129 |
1,658,108 |
1,542,713 |
Communications and the Arts |
1,516,702 |
1,009,200 |
2,525,902 |
2,439,085 |
Defence |
20,526,892 |
14,609,955 |
35,136,847 |
33,934,754 |
Education[48] |
653,034 |
1,882,073 |
4,200,594 |
4,228,269 |
Employment, Skills, Small
and Family Business39 |
1,665,487 |
Environment and Energy |
965,547 |
618,817 |
1,584,364 |
1,457,718 |
Finance |
437,228 |
303,832 |
741,060 |
1,018,675 |
Foreign Affairs and Trade |
3,758,278 |
2,665,905 |
6,424,183 |
6,240,611 |
Health |
7,355,343 |
5,076,934 |
12,432,277 |
12,766,331 |
Home Affairs |
3,656,245 |
2,646,048 |
6,302,293 |
6,683,597 |
Industry, Innovation and
Science |
1,356,740 |
941,073 |
2,297,813 |
2,259,396 |
Infrastructure, Transport,
and Regional Development |
1,520,870 |
917,766 |
2,438,636 |
2,099,974 |
Prime Minister and Cabinet |
1,193,662 |
848,817 |
2,042,479 |
1,976,067 |
Social Services |
9,132,116 |
6,390,494 |
15,522,610 |
14,826,780 |
Treasury |
3,018,217 |
1,968,187 |
4,986,404 |
4,722,582 |
Total[49]
|
58,404,241 |
40,757,931 |
99,162,172 |
97,195,690 |
No. 2 Bill
Clauses 6–11 of the No. 2 Bill outline the quantum
and types of appropriation from the consolidated revenue fund.
Clause 12 of the No. 2 Bill establishes the Advance
to the Finance Minister of $380 million for 2019–2020.
The money in the No. 2 Bill is appropriated to
incorporated and non-incorporated Government entities according to Schedule
2 of that Bill as either:
- grants
to the states, territories and local governments (see also clause 16 below)
- new
administered programs or
- non-operating
(or ‘capital’) appropriations.
These three types of appropriations cannot be included in
the No. 1 Bill as they do not relate to the ‘ordinary annual services of
Government’.
Clause 13 of the No. 2 Bill sets appropriation
limits for provisions of the Federal Financial
Relations Act 2009. For 2019–20 these debit limits are:
- for
general purpose assistance to the states and territories: $2,916,666,666 and
- for
national partnership payments: $14,583,333,334.
Clause 14 provides that the debit limits, set under
clause 13, are adjusted to take into account any GST liability that may
arise in relation to particular payments.
Clauses 15–17 of the No. 2 Bill provide for several
technical matters. In particular, clause 16 of the No. 2 Supply Act
seeks to ensure that payments made by the states, territories and local
governments from financial assistance provided by the Commonwealth accord with
the conditions established by the Minister listed in Schedule 1.
Table 2 below sets out in summary form, the amount of
appropriations in Schedule 2 to the No. 2 Bill, as well as the
amounts in the No. 2 Supply Act and the total appropriations for 2019–20.
These amounts are compared to the actual available appropriation in 2018–19.
Table 2: Total
Appropriation for 2019–20
Portfolio |
Appropriation in
Appropriation
Bill (No. 2) 2019–
2020 |
Appropriation in
Supply
Act
(No. 2) 2019–
2020 |
Total 2019–20
Appropriation |
Actual Available
Appropriation
2018–2019[50] |
|
$’000 |
$’000 |
$’000 |
$’000 |
Agriculture |
299,490 |
213,058 |
512,548 |
722,751 |
Attorney‑General’s |
27,243 |
4,544 |
31,787 |
10,487 |
Communications and the Arts |
1,762,509 |
1,258,940 |
3,021,449 |
5,111,644 |
Defence |
2,428,552 |
1,729,357 |
4,157,909 |
3,492,471 |
Education[51] |
75,230 |
35,507 |
146,539 |
95,665 |
Employment, Skills, Small
and Family Business42 |
35,802 |
Environment and Energy |
282,212 |
101,462 |
383,674 |
191,048 |
Finance |
219,757 |
64,616 |
284,373 |
273,711 |
Foreign Affairs and Trade |
407,190 |
290,854 |
698,044 |
169,907 |
Health |
57,616 |
23,029 |
80,645 |
178,802 |
Home Affairs |
124,410 |
70,897 |
195,307 |
214,319 |
Industry, Innovation and
Science |
130,203 |
36,719 |
166,922 |
63,991 |
Infrastructure, Transport,
and Regional Development |
1,319,008 |
850,013 |
2,169,021 |
2,514,576 |
Prime Minister and Cabinet |
17,271 |
12,340 |
29,611 |
39,722 |
Social Services |
93,170 |
46,885 |
140,055 |
178,069 |
Treasury |
141,298 |
74,940 |
216,238 |
416,997 |
Total[52]
|
7,420,961 |
4,813,161 |
12,234,122 |
13,674,160 |
Parliamentary
Departments Bill
Clause 3 of the Parliamentary Departments Bill
defines the term responsible presiding officer as being:
(a) in relation to the Department of the Senate—the
President of the Senate
(b) in relation to the Department of the House of
Representatives—the Speaker of that House
(c) in
relation to the Department of Parliamentary Services—the President and the
Speaker together or
(d) in relation to the Parliamentary Budget
Office—the President and the Speaker together.
Clauses 6–10 of the Parliamentary Departments Bill
outline the quantum and types of appropriation from the consolidated revenue
fund.
Clause 11 establishes the Advance to the responsible
Presiding Officer for 2019–2020. The amount of appropriation is limited as
follows:
- for
the Department of the Senate—$300,000
- for
the Department of the House of Representatives—$300,000
- for
the Department of Parliamentary Services—$1 million and
- for
the Parliamentary Budget Office—$300,000.
Clauses 12–14 of the Parliamentary Departments Bill
provides for several technical matters, including details relating to special
accounts, formally appropriating the amounts required from the CRF, and the
repeal of the Act at the start of 1 July 2022.
Table 3 below sets out, in summary form, the amount
of appropriations in Schedule 1 to the Parliamentary Departments Bill, as well
as the amounts in the Parliamentary Departments Supply Act and the total
appropriations for 2019–20. These amounts are compared to the actual
available appropriation in 2018–19.
Table 3: Total
Appropriation for 2019–20
Portfolio |
Appropriation in
Appropriation
Bill (Parliamentary
Departments)
2019–2020 |
Appropriation in
Supply
Act
(Parliamentary
Departments)
2019–2020 |
Total 2019–20
Appropriation |
Actual Available
Appropriation
2018–2019[53] |
|
$’000 |
$’000 |
$’000 |
$’000 |
Department of the Senate |
13,913 |
9,940 |
23,853 |
24,238 |
Department of the House of Representatives |
15,532 |
10,436 |
25,968 |
25,063 |
Department of Parliamentary
Services |
125,949 |
77,967 |
203,916 |
197,631 |
Parliamentary Budget Office |
5,445 |
2,813 |
8,258 |
7,238 |
Total |
160,839 |
101,156 |
261,995 |
254,170 |