Federal Register of Legislation - Australian Government

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056 Agreements as made
The instrument identifies the types of receipts which increase an existing appropriation For Professional Services Review. The instrument is given effect by the annual appropriation Acts, which provide that the relevant departmental or administered appropriation item is increased in accordance with the agreement. This enables the receipts to be spent by the agency.
Administered by: Finance
General Comments: This Agreement replaces any previous net appropriation agreement between the Finance Minister and the responsible Minister in respect of any of the appropriation items indentified in the agreement.
Exempt from sunsetting by the Financial Management and Accountability Act 1997 s 32(7)
Registered 15 Jun 2005
Tabling HistoryDate
Tabled HR16-Jun-2005
Tabled Senate20-Jun-2005
Date of repeal 01 Jan 2008
Repealed by Other
Repealing Comments Enabling provision repealed by the Financial Framework Legislation Amendment Act (No. 1) 2007 (Act No. 166 of 2007).


For Professional Services Review

This Agreement is made between:






1.1.       This net appropriation agreement is made under section 31 of the Financial Management and Accountability Act 1997 (the FMA Act).

1.2.       Under this agreement, if the agency receives any amounts covered by the agreement, the appropriation to the agency in the annual appropriation Act will be increased.

Note 1.     Section 31 of the FMA Act, together with certain standard provisions of the annual appropriation Acts, allows a departmental item (or in some rare instances, an administered item) to be increased by an amount up to the amount of eligible receipts where the Finance Minister (or his or her delegate) and the responsible Minister have entered into a net appropriation agreement.

Note 2.     This agreement is given effect by specific provisions within the annual appropriation Acts. Therefore, the agreement only has effect while the relevant specific provisions exist in the annual appropriation Acts.

1.3.This agreement will commence from 1 July 2004.

2.         DEFINITIONS

2.1.       In this agreement:

2.1.1.    'the agency' means the Professional Services Review.

2.1.2.    ‘eligible receipts' means the receipts set out in clause 5.1 of this agreement.

3.         PURPOSE

3.1.       This net appropriation agreement records the extent to which the amount specified in an item in an annual appropriation Act may be taken to be increased by reference to eligible receipts of the agency.

Note:        In most cases the item in the annual appropriation Act will be taken to be increased by the whole amount received by the agency.  However, in some cases, the item in the annual appropriation Act will only be taken to be increased by a proportion of the whole amount received by the agency - see clause 6.


4.1.       This agreement replaces any previous net appropriation agreement between the Finance Minister and the responsible Minister in respect of any of the appropriation items identified in this agreement.

4.2.       This agreement continues until a new net appropriation agreement covering the appropriation item identified in this agreement is executed by both parties to the agreement.

Note:        Under s.31(4) of the FMA Act, the Finance Minister may at any time cancel or vary this agreement, without the consent of the other party.


5.1.The following receipts are eligible receipts for the purposes of this agreement:

5.1.1.    Receipts from the sale, leasing, hiring out of, or other dealing with goods.

5.1.2.    Receipts from the provision of staff and other services.

5.1.3.    Receipts from a person (whether employed, appointed, or performing services for, the Commonwealth) as payment for any associated benefit provided (whether to that person or another person).

5.1.4.    Receipts from the sale of assets that are departmental in nature such as furniture and fittings.

5.1.5.    Receipts from the transfer of long-service leave entitlements between agencies.

5.1.6.    Subsidy and grant moneys received as a result of participation in employment subsidy schemes or programs. 

5.1.7.    Court awarded costs to the extent to which they reflect legal costs incurred in litigation the matter.

5.1.8     Contributions to office fitouts and lease incentives received from lessors and other interested third parties.

5.2.       For the avoidance of doubt, receipts under item 5.1 do not include:

5.2.1.    Court awarded fines and damages, etc (other than to the extent covered by paragraph 5.1.7); and

5.2.2.    Receipts from taxes, levies or specific cost recovered activities where the receipts are raised under legislation and where the activities are budget funded.

Note:        User charging activities should comply with the Government's cost recovery policy as set out in the Commonwealth Cost Recovery Guidelines for Information and Regulatory Agencies.




6.1.       Subject to the net appropriation provisions of the annual appropriation Acts, the Departmental item for the agency is taken to be increased by 100% for the receipts identified in clause 5.1.


1.             In order to comply with the appropriation requirements of sections 81 and 83 of the Constitution and with sections 19 and 48 of the FMA Act, agencies must keep proper accounts and records of all appropriations to ensure that they do not spend above their appropriation limits.

2.             The agency must be able to identify, quantify and, if requested, produce information to show the amounts attributable to net appropriation receipts. This information should be available within the agency's Financial Management Information System or in other supporting systems or documentation.

3.             The agency must report the net appropriations referred to above, as required, in the relevant Budget documents, agency financial statements and the Consolidated Financial Statements.

4.             It is the agency's responsibility to be aware of any changes to reporting requirements which affect net appropriation reporting requirements.

5.             The Efficiency Dividend will not apply to any amounts deemed to be appropriated under this agreement.





......................................................                  .....................................................
Delegate of the Minister for Finance                     For and on behalf of the Minister for Health
and Administration                                             and Ageing

Jackie Wilson                                                    Name

Division Manager                                                The Hon Tony Abbott MP
Social Welfare Division                                       Minister for Health and Ageing
Budget Group

Department of Finance and Administration





.......10 February 2005............                            ..........24 May 2005.....................

Dated                                                                Dated