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2016-2017-2018
THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA
HOUSE OF REPRESENTATIVES
APPROPRIATION BILL (NO. 2) 2018-2019
EXPLANATORY MEMORANDUM
(Circulated by the authority of the Minister for Finance,
Senator the Honourable Mathias Cormann)
Table of Acronyms and Defined Terms
AAA Actual Available Appropriation
AFM Advance to the Finance Minister
AI Act Acts Interpretation Act 1901
COAG Council of Australian Governments
Commonwealth An entity as defined in section 10 of the PGPA Act
entity
corporate entity A corporate Commonwealth entity or a
Commonwealth company within the meaning of the
PGPA Act
CRF Consolidated Revenue Fund
EIF Education Investment Fund
Finance Minister Minister for Finance
GST Goods and Services Tax
non-corporate Non-corporate Commonwealth entities as defined in
entities the PGPA Act, or the High Court
PGPA Act Public Governance, Performance and Accountability
Act 2013
portfolio Portfolio Budget Statements
statements
Explanatory Memorandum to Appropriation Bill (No. 2) 2018-2019
House of Representatives 1
Outline
Appropriation Bill (No. 2) 2018-2019
General Outline
1 This Explanatory Memorandum accompanies the Appropriation Bill (No. 2)
2018-2019 (the Bill).
2 The main purpose of the Bill is to propose appropriations from the
Consolidated Revenue Fund (CRF) for services that are not the ordinary annual
services of the 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 (the Constitution).
Consequently, the Bill proposes appropriations that 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 the Appropriation Bill (No. 1)
2018-2019. Other annual appropriations that are not for the ordinary annual
services of the Government are proposed in Appropriation (Parliamentary
Departments) Bill (No. 1) 2018-2019. Together these three Bills are termed the
Budget Appropriation Bills.
4 The Portfolio Budget Statements (portfolio statements) are published and
tabled in the Parliament in relation to the Bill. This Explanatory Memorandum
should be read in conjunction with the various 2018-19 portfolio statements,
which contain details on the appropriations set out in the Schedules of the Bills.
Structure of the Bill
5 The Bill provides for the appropriation of specified amounts for expenditure
by Australian Government entities, primarily being non-corporate Commonwealth
entities (non-corporate entities) under the Public Governance, Performance and
Accountability Act 2013 (PGPA Act).
6 Part 1 of the Bill deals with definitions, the interpretative role of the
portfolio statements, and the concept of notional transactions. Part 2 of the Bill
proposes appropriations to make payments of the amounts in Schedule 2 for State,
ACT, NT and local government items (clause 7), administered items (clause 8),
administered assets and liabilities items (clause 9), other departmental items
(clause 10) and corporate entity items (clause 11). Part 3 of the Bill specifies the
Advance to the Finance Minister (AFM) provision (clause 12).
7 Part 4 of the Bill deals with the debit limits applicable for 2018-2019
(clause 13) for the Education Investment Fund established by the Nation-building
Funds Act 2008, and general purpose financial assistance and national partnership
payments, as specified in the Federal Financial Relations Act 2009. Part 4 also
deals with increases to the debit limits to provide for the Goods and Services Tax
(GST) (clause 14).
Explanatory Memorandum to Appropriation Bill (No. 2) 2018-2019
House of Representatives 2
Outline
8 Part 5 deals with credits to special accounts (clause 15), the conditions that
apply to payments of State, ACT, NT and local government items (clause 16 and
Schedule 1), provides for amounts to be appropriated as necessary (clause 17) and
specifies when the Bill is repealed (clause 18). In addition to the AFM provision
in Part 3, clause 17 of the Bill recognises that the appropriations proposed in the
Bill may also be varied by the PGPA Act.
Financial Impact
9 The Bill, if enacted, would appropriate the amounts specified in Schedule 2
as set out in section 6.
Explanatory Memorandum to Appropriation Bill (No. 2) 2018-2019
House of Representatives 3
Statement of compatibility with human rights
Statement of compatibility with human rights
1 The Bill seeks to appropriate money for services that are not considered to
be the ordinary annual services of the Government.
2 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.
3 However, as the High Court has emphasised, beyond this, 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
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 Bill (No. 2) 2018-2019
House of Representatives 4
Notes on clauses
Notes on clauses
Part 1--Preliminary
Clause 1--Short title
1 Clause 1 specifies that the short title of the Bill, once enacted, will be the
Appropriation Act (No. 2) 2018-2019.
Clause 2--Commencement
2 Clause 2 provides for the Bill to commence as an Act on the later of either
1 July 2018 or the day of the Royal Assent.
Clause 3--Definitions
3 Clause 3 defines the key terms used in the Bill, such as "administered item",
"non-corporate entity", and "State, ACT, NT and local government item".
Clause 4--Portfolio statements
4 Clause 4 declares that the portfolio statements are relevant documents under
paragraph 15AB(2)(g) of the Acts Interpretation Act 1901 (AI Act) which
provides for material to be considered in the interpretation of an Act if the
material is declared by the Act to be relevant material for the purposes of
section 15AB of the AI Act.
5 The purpose of the portfolio statements is to provide information on the
proposed allocation of resources to Government outcomes by Commonwealth
entities within each portfolio. The term "portfolio statements" is defined in the
Bill, at clause 3, to mean the Portfolio Budget Statements tabled in relation to the
Bill.
Clause 5--Notional transactions between entities that are part
of the Commonwealth
6 Clause 5 provides that notional transactions between non-corporate entities
are to be treated as if they are real transactions. Notional transactions, therefore,
require the debiting of an appropriation made by Parliament. The payments of the
amounts in Schedule 2 from one non-corporate entity to another do not require, in
a constitutional sense, an appropriation, because both non-corporate entities
operate within the CRF. For reasons of financial discipline and transparency, the
practice has arisen for these payments between non-corporate entities to be treated
as though they required an appropriation, and to debit an appropriation when such
notional payments are made. This is consistent with section 76 of the PGPA Act.
Explanatory Memorandum to Appropriation Bill (No. 2) 2018-2019
House of Representatives 5
Notes on clauses
7 When a non-corporate entity makes a payment, whether to another
non-corporate entity or another part of the same non-corporate entity (such as a
different "business unit" within the entity), it is to be treated as a "real" payment.
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 non-corporate entity (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.
Part 2--Appropriation items
Clause 6--Summary of appropriations
8 Clause 6 sets out the total of the appropriations in Schedule 2 of the Bill.
The amounts in Schedule 2 may be increased by a determination under clause 12
(Advance to the Finance Minister).
9 The amounts in Schedule 2 of the Bill may be adjusted further in accordance
with sections 74 to 75 of the PGPA Act. Specifically:
Section 74 of the PGPA Act, when read with Rule 27 of the Public
Governance, Performance and Accountability Rule 2014, permits
non-corporate entities to retain certain types of receipts by adding them to
their most recent departmental item or other type of appropriation in an
Appropriation Act when prescribed.
Appropriations may be adjusted by amounts recoverable by a non-corporate
entity from the Australian Taxation Office for Goods and Services Tax
(GST), in accordance with section 74A of the PGPA Act. The amounts
specified in Schedule 2 exclude recoverable GST. The appropriations shown
represent the net amount that Parliament is asked to allocate to particular
purposes.
Section 74A 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 2. Section 74A also applies to notional
transactions between and within non-corporate entities.
Items may be adjusted to take into account the transfer of functions between
non-corporate entities, in accordance with section 75 of the PGPA Act. It is
possible that adjustments under section 75 may result in new items and/or
outcomes being created in an Appropriation Act.
Explanatory Memorandum to Appropriation Bill (No. 2) 2018-2019
House of Representatives 6
Notes on clauses
10 Additionally, the Finance Minister manages the payment from items in the
Bill by non-corporate entities using a discretionary power under section 51 of the
PGPA Act. Section 51 allows the Finance Minister to manage the timing and the
amount of appropriated money to be made available to a Commonwealth entity
(an entity as defined in section 10 of the PGPA Act), except as required by law.
Clause 7--State, ACT, NT and local government items
11 Clause 7 provides administered appropriations for financial assistance to the
States, ACT, NT and local governments. State, ACT, NT and local government
items are appropriated separately for each outcome, making it clear what the
funding is intended to achieve. The amount specified in Schedule 2 for an
outcome may be applied by a non-corporate entity for the purpose of making
payments to any of the States, ACT, NT or local government authorities for the
purpose of achieving that outcome.
12 Clauses 7 and 16 delegate Parliament's power under section 96 of the
Constitution to impose terms and conditions on payments of financial assistance
to the States to the responsible Ministers listed in Schedule 1 of the Bill.
Schedule 1 also lists the Ministers who may determine the amounts and timing of
those payments. These payments are usually made pursuant to eligibility rules and
conditions established by the Government or Parliament.
13 Additional information on payments to the States, Territories and local
government can be found in Appendix E to Budget Paper No. 3, as well as the
portfolio statements of the relevant entities. These documents can be found at
www.budget.gov.au.
Clause 8--Administered items
14 Subclause 8(1) provides for the appropriation of new administered outcome
amounts to be applied by a non-corporate entity for the purpose of contributing to
the outcome for a non-corporate entity. An "administered item" is defined in
clause 3 to be an amount set out in Schedule 2 opposite an outcome for a
non-corporate entity under the heading "New Administered Outcomes". As with
administered items in the Appropriation Bill (No. 1) 2018-2019, New
Administered Outcomes are appropriated separately for each outcome, making it
clear what the funding is intended to achieve.
15 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.
Explanatory Memorandum to Appropriation Bill (No. 2) 2018-2019
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Notes on clauses
16 New Administered Outcomes are those administered by a non-corporate
entity on behalf of the Government (e.g. certain grants, benefits and transfer
payments). These payments are usually made pursuant to eligibility rules and
conditions established by the Government or the Parliament. Specifically,
administered items are tied to outcomes (departmental items are not).
17 New Administered Outcomes are typically proposed when a non-corporate
entity's outcomes are changed to reflect new program objectives, strategies and/or
activities; and/or
a non-corporate entity seeks administered operating appropriations for the
first time (including existing non-corporate entities that have received
departmental operating appropriations in the past); and/or
annual administered operating appropriations are proposed for the first time,
for programs previously funded by special appropriations.
Clause 9--Administered assets and liabilities items
18 Clause 9 provides amounts in Schedule 2 to acquire administered assets,
enhance existing administered assets and/or discharge administered liabilities
relating to activities administered by non-corporate entities on behalf of the
Government. Administered assets and liabilities appropriations are provided for
functions managed by a non-corporate entity on behalf of the Government.
Administered assets and liabilities items can be applied for any outcomes of the
non-corporate entity in Schedule 2 of the Bill, or Schedule 1 to the Appropriation
Bill (No. 1) 2018-2019.
Clause 10--Other departmental items
19 Clause 10 appropriates departmental non-operating appropriations in the
form of equity injections, over which the non-corporate entity also exercises
control. This clause provides that the amount specified in other departmental
items for a non-corporate entity may be applied for the departmental expenditure
of the entity. For example, "equity injections" can be provided to non-corporate
entities to enable investment in assets to facilitate departmental activities and for
Designated Collecting Institutions to purchase heritage and cultural assets.
20 Other departmental items are not expressed in terms of a particular financial
year. For example, equity injection appropriations provide funding to meet the
cost expected to be incurred in the Budget year to acquire a new asset, however,
for a number of reasons, some part of the appropriation might not be required
until a later financial year. Other departmental items are available until they are
spent, or the Act through which they were appropriated is repealed. Annual
Appropriation Acts have a lifespan of up to three years after which they
automatically repeal.
Explanatory Memorandum to Appropriation Bill (No. 2) 2018-2019
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Notes on clauses
Clause 11--Corporate entity items
21 Clause 11 provides for appropriations of money for corporate entities to be
paid from the CRF by the relevant Department. Clause 11 provides that payments
for corporate entities must be used for the purposes of those entities.
22 A "corporate entity" is defined in clause 3 to be a corporate Commonwealth
entity or a Commonwealth company within the meaning of the PGPA Act. Many
corporate entities receive funding from appropriations. However, these entities are
legally separate from the Commonwealth, and as a result, do not debit
appropriations or make payments from the CRF.
23 Corporate entity payments are initiated by requests to the relevant portfolio
Departments from the corporate entities. The Finance Minister manages
appropriations for corporate entities through a discretionary power to control the
timing and amount made available under section 51 of the PGPA Act, except as
required by law. Corporate entities hold the amounts paid to them on their own
account.
24 Subclause 11(2) provides that if a corporate entity is subject to another Act
that requires amounts appropriated by Parliament for the purposes of that entity to
be paid to the entity, then the full amount of the corporate entity payment must be
paid to the entity.
25 The purpose of subclause 11(2) is to clarify that subclause 11(1) is not
intended to qualify any obligations in other legislation regulating a corporate
entity, where that other legislation requires the Commonwealth to pay the full
amount appropriated for the purposes of the entity.
26 In addition to the annual appropriations, some corporate entities may also
receive public money from related entities such as a portfolio Department and
from special appropriations managed by those Departments. Many corporate
entities also receive funds from external sources.
Part 3--Advance to the Finance Minister
Clause 12--Advance to the Finance Minister
27 Clause 12 of the Bill enables the Finance Minister to allocate additional
amounts for items when satisfied that there is an urgent need for expenditure, and
the existing appropriation in the current year, is not provided for, or is
insufficiently provided for. The allocated amount is referred to as the Advance to
the Finance Minister (AFM). Subclause 12(3) provides that the total amount that
can be determined under the AFM provision is $380 million.
28 Subclause 12(1) establishes the criteria about which the Finance Minister
must be satisfied before determining to add an amount to an item of an entity.
Explanatory Memorandum to Appropriation Bill (No. 2) 2018-2019
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Notes on clauses
29 The Finance Minister will only consider issuing an amount under
subclause 12(1) if satisfied there is an urgent need for expenditure that is not
provided for, or is insufficiently provided for, in Schedule 2, because of an
omission or understatement, or because of unforeseen circumstances. Generally,
options under sections 74 to 75 of the PGPA Act must be considered, where
applicable, before the Finance Minister will make a determination under
subclause 12(2).
30 Subclause 12(2) enables the Finance Minister to make a determination to
allocate an amount from the AFM to an item in Schedule 2, to a new item not
already in Schedule 2, or to a new outcome.
31 Subclause 12(4) provides that a determination under subclause 12(2) is a
legislative instrument, which must be tabled in Parliament. It is not subject to
section 42 (disallowance) of the Legislation Act 2003 as this would frustrate the
purpose of the provision, which is to provide additional appropriation for urgent
expenditure. Further, an AFM is not subject to Part 4 of Chapter 3 (sunsetting) of
the Legislation Act 2003; legislative instruments enabled by the Bill, once
enacted, automatically repeal when the Act itself repeals (see clause 13).
Part 4--Debit limits
Clause 13--Debit limits
32 Parliament may approve annual debit limits for the following special
appropriations:
the amounts that may be debited or spent from the Education Investment
Fund (EIF) special account, established by the Nation-building Funds
Act 2008; and
the amounts that may be spent for general purpose financial assistance or
national partnership payments under the Federal Financial Relations
Act 2009.
33 Specifying a debit limit in clause 13 is an effective mechanism to manage
expenditure of public money as the official or Minister making a payment of
public money cannot do so without this authority. The purpose of doing so is to
provide Parliament with a transparent mechanism by which it may review the rate
at which amounts are committed for expenditure.
34 Note that clause 13 is not an appropriation for either the Nation-building
Funds Act 2008 or the Federal Financial Relations Act 2009.
Nation-building Funds Act 2008
35 For the purposes of section 199 of the Nation-building Funds Act 2008,
subclause 13(1) provides the debit limit for the EIF for 2018-19.
Explanatory Memorandum to Appropriation Bill (No. 2) 2018-2019
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Notes on clauses
36 The EIF is established under section 131 of the Nation-building Funds
Act 2008. It consists of the investments of the EIF and the EIF Special Account,
which is a special account recognised under section 80 of the PGPA Act and
established under section 132 of the Nation-building Funds Act 2008.
37 The debit limit applies to the main purposes of the EIF, namely making
payments in relation to the creation or development of higher education
infrastructure, research infrastructure, vocational education and training
infrastructure, and eligible education infrastructure, as well as any transitional
Higher Education Endowment Fund payments.
38 It is important to note that this Bill will not appropriate amounts to be paid
from the EIF. The intention for specifying a debit limit in subclause 13(1) is to set
a maximum limit on the amounts that may be covered for the 2018-19 financial
year, for the purpose to which the limit applies.
39 The debit limit for the EIF in the Bill is specific to 2018-19 and will not
limit the debit limits that may be specified in regard to any other year.
Federal Financial Relations Act 2009
40 For the purposes of paragraph 9(3) of the Federal Financial Relations
Act 2009, subclause 13(2) provides the debit limit for general purpose financial
assistance for the 2018-19 financial year.
41 This debit limit applies for 2018-19 to the amount that the Treasurer can
credit to the COAG Reform Fund and the total amount that can be debited from
that Fund for the purposes of making a grant of general purpose financial
assistance to a State, the Australian Capital Territory or the Northern Territory.
42 The COAG Reform Fund was established by section 5 of the COAG Reform
Fund Act 2008, which is a special account under section 80 of the PGPA Act. The
purposes of the COAG Reform Fund Special Account are provided at section 6 of
the COAG Reform Fund Act 2008.
43 If a debit limit is not indicated in an Appropriation Act for the purposes of
paragraph 9(3) of the Federal Financial Relations Act 2009 for a financial year,
amounts cannot be credited to the COAG Reform Fund under paragraph 9(2)(a) of
the Federal Financial Relations Act 2009, and amounts must not be debited from
the COAG Reform Fund for the purposes to which the limit applies.
44 For the purposes of paragraph 16(3) of the Federal Financial Relations
Act 2009, subclause 13(3) provides the debit limit for national partnership
payments for the 2018-19 financial year.
Explanatory Memorandum to Appropriation Bill (No. 2) 2018-2019
House of Representatives 11
Notes on clauses
45 This debit limit applies for 2018-19 to the amount that the Treasurer can
credit to the COAG Reform Fund and the total amount that can be debited from
that Fund for the purposes contained in paragraphs 16(1)(a) to (c) inclusive of the
Federal Financial Relations Act 2009. These purposes relate to making a grant of
financial assistance to a State to support the delivery by the State of specified
outputs or projects, facilitate reforms by the State, or reward the State for
nationally significant reforms.
46 If a debit limit is not indicated in an Appropriation Act for the purposes of
paragraph 16(3) of the Federal Financial Relations Act 2009 for a financial year,
amounts cannot be credited to the COAG Reform Fund under paragraph 16(2)(a)
of the Federal Financial Relations Act 2009 and amounts must not be debited
from the COAG Reform Fund for the purposes to which the limit applies.
47 It is important to note that this Bill will not appropriate amounts to be paid
under sections 9 and 16 of the Federal Financial Relations Act 2009. The
intention for specifying debit limits in subclauses 13(2) and 13(3) is to set
maximum limits on the amounts that may be covered for the 2018-19 financial
year, for the purposes to which those limits apply.
Clause 14--Adjustments for GST
48 The effect of this clause will be to increase a debit limit by the amount of
any GST qualifying amount in respect of an amount paid from a fund named in
clause 13.
49 Some payments from the EIF and the COAG Reform Fund may include a
GST qualifying amount and the relevant debit limit is adjusted accordingly. The
appropriation itself is not affected by clause 14, because it is increased by the
operation of section 74A of the PGPA Act. Essentially, clause 14 clarifies that the
amounts specified for the debit limits for 2018-19 are exclusive of any GST
qualifying amounts that may arise in respect of acquisitions made in relation to
that limit.
Part 5--Miscellaneous
Clause 15--Crediting amounts to special accounts
50 Clause 15 provides that if the purpose of an item in Schedule 2 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 PGPA Act by a determination of the Finance Minister (section 78) that
is disallowable by Parliament or by another Act (sections 79 and 80). The
determination or Act that establishes the special account will specify the purposes
of the special account.
Explanatory Memorandum to Appropriation Bill (No. 2) 2018-2019
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Notes on clauses
Clause 16--Conditions etc. applying to State, ACT, NT and local
government items
51 Clause 16 deals with Parliament's power under section 96 of the
Constitution to provide financial assistance to the States. Clause 16 delegates the
power to the responsible Ministers listed in Schedule 1 of the Bill, by providing
the Ministers named in Schedule 1 with the power to determine:
conditions under which payments to the States, ACT, NT and local
government may be made: clause 16(2)(a); and
the amounts and timing of those payments: clause 16(2)(b).
52 Subclause 16(4) provides that determinations made under subclause 16(2)
are not legislative instruments, because these determinations are not altering the
appropriations approved by Parliament. Determinations under subclause 16(2) are
administrative in nature and will simply determine how appropriations for State,
ACT, NT and local government items will be paid.
53 Determinations under clause 16 or its equivalent are rare. Most payments to
the States and Territories are governed by, and appropriated through, the Federal
Financial Relations Act 2009. For the payments to the States, ACT, NT and local
government in an even-numbered Appropriation Act, generally other legislative or
agreed frameworks determine how the payments are made and when, such as the
Local Government (Financial Assistance) Act 1995 or a National Agreement.
Many of these arrangements can be found on the Federal Financial Relations
website (http://www.federalfinancialrelations.gov.au/).
54 Although financial assistance is provided to the ACT, NT and local
governments without reference to section 96 of the Constitution, those payments
are administered in the same way. Therefore, the Ministers identified in
Schedule 1 may set the amounts and timing and impose terms and conditions on
those payments. Subclause 16(5) also notes that clause 16 will not limit the
powers of the Commonwealth under section 96 of the Constitution to provide
financial assistance to a State which is not appropriated by a State, ACT, NT and
local government item.
55 In the Bill, appropriations to the States, ACT, NT and local government are
sought for the Department of Education and Training against Outcome 1, the
Department of Infrastructure, Regional Development and Cities against
Outcome 1 and Outcome 3 and the Department of the Prime Minister and Cabinet
against Outcome 2.
56 Further information may also be found in the portfolio statements for the
respective portfolios. The most recent detailed estimates of Commonwealth
payments to the States, Territories and local governments from 2018-19 to
2021-22 may be found in Budget Paper No. 3: Federal Financial Relations
2018-19 which is available at www.budget.gov.au.
Explanatory Memorandum to Appropriation Bill (No. 2) 2018-2019
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Notes on clauses
Clause 17--Appropriation of the Consolidated Revenue Fund
57 Clause 17 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 Act commences.
This clause indicates that the amounts appropriated may be affected by the
PGPA Act, in particular sections 74 to 75 (see clause 6), after the Act commences.
Clause 18--Repeal of this Act
58 Clause 18 specifies that the Bill, once enacted, will repeal at the start of
1 July 2021.
Schedule 1--Payments to or for the States, ACT, NT and
local government
59 In accordance with clause 16, Schedule 1 lists the Ministers responsible for
determinations on payments to or for the States, ACT, NT and local government.
Schedule 2--Services for which money is appropriated
60 Schedule 2 specifies the appropriations proposed for the other than ordinary
annual services of the Government. Schedule 2 contains a summary table which
lists the total amounts for each portfolio. A separate summary table is included for
each portfolio, with other tables detailing the appropriations for each
Commonwealth entity. More details about the appropriations in Schedule 2 are
contained in the portfolio statements and the second reading speech for the Bill.
61 Schedule 2 includes, for information purposes, a figure for the previous
financial year labelled "Actual Available Appropriation (italic figures) -
2017-2018". The Actual Available Appropriation (AAA) is an estimate that does
not affect the amount available at law. That figure provides a comparison with the
proposed appropriations.
62 The AAA is calculated for each item by adding the amounts appropriated in
the previous financial year's annual Appropriation Acts, plus any AFMs, and any
adjustments under sections 51 and 75 of the PGPA Act. In some instances, the
figure may also be affected by limits applied administratively by the Department
of Finance. In addition, where an entity's outcome structure has changed since the
last Appropriation Act, only ongoing outcomes may be shown in the Bill.
Explanatory Memorandum to Appropriation Bill (No. 2) 2018-2019
House of Representatives 14