Federal Register of Legislation - Australian Government

Primary content

No. 5 of 2011-2012 Determinations/Financial (Appropriation) as made
This instrument determines that the Administered Item for Outcome 3 for the Department of Families, Housing, Community Services and Indigenous Affairs in Appropriation Act (No. 1) 2011-12 is increased by $17,610,000.00.
Administered by: Finance
Exempt from sunsetting by the Legislative Instruments Act 2003 s 54(2) item 41
Registered 09 Jul 2012
Tabling HistoryDate
Tabled HR14-Aug-2012
Tabled Senate14-Aug-2012
Date of repeal 17 Oct 2014
Repealed by Other
Repealing Comments Enabling legislation repealed by Schedule 6 of the Omnibus Repeal Day (Autumn 2014) Act 2014 .

Explanatory Statement

 

Section 13 Appropriation Act (No. 1) 2011-2012

Advance to the Finance Minister

 

 

The instrument to which this explanatory statement relates

This explanatory statement relates to an instrument (the instrument) entitled “Advance to the Finance Minister – Section 13 of Appropriation Act (No. 1) 2011-2012”, dated 28 June 2012 and numbered 5 of 2011-2012.

The legislative authority under which the instrument is made

The Advance to the Finance Minister (AFM) is a provision contained in the annual Appropriation Acts. It enables the Finance Minister to facilitate urgent and unforeseen expenditure that was not within the contemplation of Parliament when the Appropriation Act was passed and is therefore not provided for in Schedule 1 of the Appropriation Act.

The Advance to the Finance Minister is provided under section 13 of Appropriation Act (No. 1) 2011-2012. The discretionary power is exercisable upon the Finance Minister’s satisfaction of the matters specified in section 13. This section provides that amounts can be issued from the Advance to the Finance Minister, up to a limit of $295 million, if the Finance Minister is satisfied that there is an urgent need for expenditure, in the current year, that is not provided for, or is insufficiently provided for, in Schedule 1 of that Act. The qualifying circumstances on the discretion of the Finance Minister to issue additional amounts under this provision are contained in subsections 13(1) of that Act. The application from the Department of Families, Housing, Community Services and Indigenous Affairs (FaHCSIA) has satisfied the Finance Minister that the additional expenditure was not provided for due to unforeseen circumstances.

Exercise of the power via the issue of a determination has effect as if Schedule 1 of Appropriation Act (No. 1) 2011-2012 were amended to make provision for the additional expenditure specified in the determination.

Purpose of the instrument

The instrument determines that the Administered Item for Outcome 3 for FaHCSIA, to cover No Interest Loan Scheme subsidies under the Home Energy Saver Scheme.

Human Rights Impact Statement

This Instrument is exempt from disallowance under subsection 44(2) of the Legislative Instruments Act 2003. As such, a statement of compatibility prepared under subsection 9(1) of the Human Rights (Parliamentary Scrutiny) Act 2011 is not required in this Explanatory Statement.

Background

The background to the instrument is provided in the application made by FaHCSIA for funding from the Advance to the Finance Minister, reproduced below.


 

APPLICATION FOR ADVANCE TO THE FINANCE MINISTER 2011-2012

 


Agency:                                 Department of Families, Housing, Community Services and Indigenous Affairs

Appropriation:                   Appropriation Act (No. 1) 2011-2012

Description:                        Administered item

Outcome:                             Outcome 3 – Improved capacity for vulnerable people and communities to participate economically and socially and to manage life-transitions through payments, targeted support services and community capability building initiatives.

Source of Available Appropriations

2011-2012

 

2010-2011

All other years

 

$

$

$

Appropriation Act (No. 1)

 

 

 

Community Investment

44,082,579

71,943,708

 

Financial Management

120,088,000

123,319,630

 

Supplementary Payments and Support for Income Support Recipients

8,737,000

6,655,573

 

Support for People in Special Circumstances

1,357,000

897,512

 

Appropriation Act (No. 3)

 

 

 

Community Investment

2,700,000

60,000

 

Financial Management

3,375,000

 

 

Supplementary Payments and Support for Income Support Recipients

(100,000)

 

 

Support for People in Special Circumstances

100,000

 

 

Other Administered - FaHCSIA

 

910,000

 

TOTAL APPROPRIATIONS AVAILABLE

$180,339,579

203,786,423

0

TOTAL AMOUNT SPENT (as at cob 21 June 2012)

$167,783,737

203,786,423

 

TOTAL UNSPENT APPROPRIATIONS

$12,555,842

0

0

Appropriation Required:               $30,165,842

Appropriations Available:             $12,555,842

Amount required from AFM:    $17,610,000

AFM Category:

unforeseen – “Appropriation Act (No. 1) 2011-2012, Part 3, section 13 (1)(b)”

Explanation of requirements from AFM:

This is a new payment requirement that is to be paid out in the current financial year. The Department has identified up to $3.0 million from underspends within Outcome 3 (3.1 and 3.5).  Therefore the required funds for this AFM are $17.61 million.

Urgent:

FaHCSIA is responsible to make a payment of $20.61 million before 30 June 2012.  This funding will be provided to the Home Energy Saver Scheme (HESS) No Interest Loan Scheme (NILS) subsidies sub-program within the Financial Management program (program 3.1). The purpose of the HESS NILS subsidies sub-program is to provide subsidies to vulnerable Australians in order to improve their financial capacity, with entitlement based on their financial circumstances which is not limited to any sub-group of the population such as Families or Indigenous. Access to the subsidies are based on applicants having a current Health Care Card and being excluded from mainstream financial services.

The payment will be made to Good Shepherd Microfinance to deliver the subsidies to enable the purchase of higher cost, more energy efficient, household goods and appliances for applicants accessing NILS loans. This extends the current agreement for Good Shepherd Microfinance (the sole provider of the Scheme) to deliver the national NILS program.  As the Department has insufficient appropriation available to make the payment, an AFM is required.

The available appropriation has current commitments that must be met before 30 June 2012.

Unforeseen

This requirement was identified after the 2012-13 Budget, but due to the critical nature, Government has agreed that it is to be paid before 30 June 2012.

 


Signed By Chief Finance Officer

 

NAME: (block capitals please)

 

SIGNATURE:

 

DATE: