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2019-2020-2021-2022
THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA
HOUSE OF REPRESENTATIVES
APPROPRIATION BILL (NO. 2) 2022-2023
EXPLANATORY MEMORANDUM
(Circulated by the authority of the Minister for Finance,
Senator the Honourable Simon Birmingham)
Table of Acronyms and Defined Terms
AAA Actual Available Appropriation
AFM Advance to the Finance Minister
AI Act Acts Interpretation Act 1901
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
Finance Minister Minister for Finance
GST Goods and Services Tax
non-corporate A non-corporate Commonwealth entity as defined in
entity the PGPA Act, or the High Court of Australia
PGPA Act Public Governance, Performance and Accountability
Act 2013
portfolio Portfolio Budget Statements
statements
Explanatory Memorandum to Appropriation Bill (No. 2) 2022-2023
House of Representatives 1
Outline
Appropriation Bill (No. 2) 2022-2023
General Outline
1 This Explanatory Memorandum accompanies the Appropriation Bill (No. 2)
2022-2023 (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 The Bill proposes appropriations broadly equivalent to 7/12ths of the
estimated 2022-23 annual appropriations that are not for the ordinary services of
the Government, plus 2022-23 Budget measures (equating to the final seven
months of the financial year).
4 The Supply Bill (No. 2) 2022-2023 appropriates the CRF for the other
5/12ths, less any Budget measures, with a view to ensuring that there are adequate
appropriations for the first part of the 2022-23 financial year for activities that are
not for the ordinary annual services of the Government.
5 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)
2022-2023, on broadly the same proportional basis as this Bill.
6 The Portfolio Budget Statements (portfolio statements) show amounts
included across both the Appropriation Bills (Nos. 1 and 2) 2022-2023 and
Supply Bills (Nos. 1 and 2) 2022-2023. This Explanatory Memorandum should be
read in conjunction with the various 2022-23 portfolio statements, which contain
details on the appropriations set out in the Schedules of the Bills.
Structure of the Bill
7 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).
8 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).
Explanatory Memorandum to Appropriation Bill (No. 2) 2022-2023
House of Representatives 2
Outline
9 Part 4 of the Bill deals with credits to special accounts (clause 13) and the
conditions that apply to payments of State, ACT, NT and local government items
(clause 14 and Schedule 1), provides for amounts to be appropriated as necessary
(clause 15) and specifies when the Bill is repealed (clause 16). In addition to the
AFM provision in Part 3, clause 16 of the Bill recognises that the appropriations
proposed in the Bill may also be varied by the PGPA Act.
Financial Impact
10 The Bill, if enacted, would appropriate the amounts specified in Schedule 2
as set out in clause 6.
Explanatory Memorandum to Appropriation Bill (No. 2) 2022-2023
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, 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
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) 2022-2023
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) 2022-2023.
Clause 2--Commencement
2 Clause 2 provides for the Bill to commence as an Act on the later of either
1 July 2022 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 for
the purposes of section 15AB of the Acts Interpretation Act 1901 (AI Act).
Paragraph 15AB(2)(g) of the AI Act provides for material to be considered in the
interpretation of an Act if the material is declared by the Act to be a relevant
document 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
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) 2022-2023
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) 2022-2023
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Notes on Clauses
10 Additionally, the Finance Minister manages the payment from items in the
Bill to Commonwealth 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 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) 2022-2023, 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.
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).
Explanatory Memorandum to Appropriation Bill (No. 2) 2022-2023
House of Representatives 7
Notes on Clauses
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 Supply Act
(No. 1) 2022-2023.
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.
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
Explanatory Memorandum to Appropriation Bill (No. 2) 2022-2023
House of Representatives 8
Notes on Clauses
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).
28 Subclause 12(1) has the effect that a determination can only be made under
subclause 12(2) if the Finance Minister is satisfied there is an urgent need for
expenditure in the current year that is not provided for, or is insufficiently
provided for, in Schedule 2 either because of an omission or understatement, or
because of unforeseen circumstances.
29 Subclause 12(2) enables the Finance Minister to make a determination to
allocate an amount from the AFM to an existing item in Schedule 2, to a new item
not already in Schedule 2, or to a new outcome.
30 Subclause 12(3) provides that the total amount that can be determined under
the AFM provisions in the Bill, if enacted, would be $3,600 million.
Explanatory Memorandum to Appropriation Bill (No. 2) 2022-2023
House of Representatives 9
Notes on Clauses
31 Subclause 12(4) provides that the total amount of the AFM provisions in
subclause 12(3) includes $3,000 million for future urgent and unforeseen
COVID-19 related expenditure and $600 million for other urgent and unforeseen
expenditure.
32 Subclause 12(5) 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. This also reflects the need for entities to have certainty of
appropriation when making expenditures. 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 18).
33 The AFM is an important mechanism which provides the Government with
the capacity to respond to urgent and unforeseen pressures such as those that
emerged throughout the COVID-19 pandemic without impinging on the important
role of Parliament in its consideration of legislation.
34 The extraordinary AFM provisions for the purposes of COVID-19 related
response expenditure take into consideration the unique and evolving nature of the
COVID-19 pandemic. These provisions ensure the Government is able to respond
to urgent and unforeseen COVID-19 related expenditure requirements should
these arise at times during the 2022-23 financial year, where it is not possible or
not practical to pass further Appropriation Acts.
35 The AFM is split in the usual proportion across the pair of Bills (40 per cent
in Bill 1 and 60 per cent in Bill 2). Accordingly, the Appropriation Bill (No. 1)
2022-2023 provides for $2,000 million and this Bill provides for $3,000 million,
for COVID-19 related response expenditure.
36 The $5,000 million of the contingency in the Appropriation Bills (Nos. 1
and 2) 2022-2023 is statutorily limited to COVID-19 related matters only. This is
consistent with a commitment previously provided for in the Appropriation
(Coronavirus Economic Response Package) Acts (Nos. 1 and 2) 2019-20 and the
Appropriation (Coronavirus Response) Acts (Nos. 1 and 2) 2021-2022.
37 The $5,000 million is the maximum total appropriation that can be allocated
from the AFM provisions in both the Supply Bills (Nos. 1 and 2) 2022-2023 and
the Appropriation Bills (Nos. 1 and 2) 2022-2023, for COVID-19 related response
expenditure. This total is similar in value to the COVID-19 related items that have
received specific program funding in the Appropriation (Coronavirus Response)
Acts (Nos. 1 and 2) 2021-2022.
38 The $1,000 million general-purpose component of the AFM quantum
($400 million in the Appropriation Bill (No. 1) 2022-2023 and $600 million in
this Bill) is for the purposes of responding to circumstances other than
Explanatory Memorandum to Appropriation Bill (No. 2) 2022-2023
House of Representatives 10
Notes on Clauses
COVID-19. The $1,000 million setting marks a normalisation in the value of the
AFM for general purposes.
39 Allocations from the AFM provisions will be subject to the same scrutiny
and accountability provisions as have applied to other AFM provisions during the
pandemic, including a media release in weeks when AFMs are issued which
reports and reconciles the use of the AFM provision, and seeking the concurrence
of the Shadow Minister for Finance on behalf of the Opposition for any proposed
AFM greater than $1 billion (as detailed at paragraph 44 below).
Effect of an AFM determination
40 An AFM determination does not authorise expenditure on a particular
purpose. It increases an existing multi-purpose line item appropriation
(departmental or administered) in the Appropriation Act that covers expenditure
on a range of different programs.
Why AFM determinations are exempt from disallowance
41 The disallowance of an AFM determination would not invalidate
expenditure that has already been made in reliance upon it. However, it would
leave entities short of the funds that they need to carry out their other ordinarily
budgeted expenditure in what remains of a financial year.
42 Disallowance of an AFM determination would reduce an entity's
appropriation to its original level. Yet the urgent expenditure it has already
undertaken validly prior to disallowance, in reliance upon the determination,
would count towards the newly reduced appropriation. The reason why this occurs
is because an AFM determination does not authorise expenditure on a particular
purpose. It increases an existing multi-purpose line item appropriation
(departmental or administered) in the Appropriation Act that covers expenditure
on a range of different programs. If a House disallows the determination, it
reverses the increase and impairs the funding remaining for other programs that
are unrelated to the AFM.
43 Accordingly, disallowance would leave the entity with a shortfall in the
appropriation available to fund the ongoing expenditure for which the
Government originally budgeted and which the Parliament approved when it
passed the Appropriation Act. Because of the unavoidable negative impacts that
disallowance of an AFM would cause to the routine operations of the
Government, there is a bipartisan consensus that AFM determinations should be
exempt from disallowance.
Accountability and transparency arrangements for AFM determinations
44 Recent extraordinary AFM provisions have been supported by strong
accountability and transparency arrangements including:
Explanatory Memorandum to Appropriation Bill (No. 2) 2022-2023
House of Representatives 11
Notes on Clauses
(a) registration of each AFM determination with an explanatory statement on
the Federal Register of Legislation (legislation.gov.au);
(b) a media release by the Finance Minister in weeks when AFMs are issued;
(c) a commitment for the Finance Minister to seek the concurrence of the
Shadow Minister for Finance, on behalf of the Opposition, for any
proposed AFM allocation over $1 billion;
(d) an annual assurance review by the Australian National Audit Office
(ANAO); and
(e) an Annual Report on the AFM allocations tabled in Parliament, inclusive
of the ANAO's assurance review report.
45 These measures will continue throughout the 2022-23 financial year,
consistent with the arrangements that have applied to other AFMs during the
COVID-19 pandemic.
Part 4 - Miscellaneous
Clause 13--Crediting amounts to special accounts
46 Clause 13 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 the 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.
Clause 14--Conditions etc. applying to State, ACT, NT and local
government items
47 Clause 14 deals with the 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, in the way
described in subclause 14(3):
• conditions under which payments to the States, ACT, NT and local
government may be made: subclause 14(2)(a); and
• the amounts and timing of those payments: subclause 14(2)(b).
48 Subclause 14(4) provides that determinations made under subclause 14(2)
are not legislative instruments, because these determinations are not altering the
appropriations approved by the Parliament. Determinations under subclause 14(2)
Explanatory Memorandum to Appropriation Bill (No. 2) 2022-2023
House of Representatives 12
Notes on Clauses
are administrative in nature and will simply determine how appropriations for
State, ACT, NT and local government items will be paid.
49 Determinations under clause 14 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/).
50 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 14(5) also notes that clause 14 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.
51 In the Bill, appropriations to the States, ACT, NT and local government are
sought for the Department of Education, Skills and Employment against
Outcome 1, the Department of Infrastructure, Transport, Regional Development
and Communications against Outcome 1 and Outcome 3, and the National
Indigenous Australians Agency against Outcome 1.
52 Further information may also be found in the portfolio statements for the
respective portfolios which are available at www.budget.gov.au.
Clause 15--Appropriation of the Consolidated Revenue Fund
53 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 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 16--Repeal of this Act
54 Clause 16 provides that the Bill, once enacted, will repeal at the start of
1 July 2025.
Explanatory Memorandum to Appropriation Bill (No. 2) 2022-2023
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Notes on Clauses
Schedule 1--Payments to or for the States, ACT, NT and
local government
55 In accordance with clause 14, Schedule 1 lists the Ministers responsible for
determinations on payments to or for the States, ACT, NT and local government.
Explanatory Memorandum to Appropriation Bill (No. 2) 2022-2023
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Notes on Clauses
Schedule 2--Services for which money is appropriated
56 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.
This Bill includes 7/12ths of appropriations for most entities, with the exception of
those with expenditure that is front-loaded in the financial year that receive more
in the Supply Bill (No. 2) 2022-2023 and are therefore allocated less in this Bill.
57 Schedule 2 includes, for information purposes, a figure for the previous
financial year labelled "Actual Available Appropriation (italic figures) -
2021-2022". 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.
58 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. For
these reasons, the Actual Available Appropriation figures may be different from
the sum of amounts provided in earlier Appropriation Acts.
Explanatory Memorandum to Appropriation Bill (No. 2) 2022-2023
House of Representatives 15