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Appropriation Bill 2005
Appropriation Bill 2005
Explanatory Notes
General Outline
Policy Objectives of the Bill
Section 21(a) of the Financial Administration and Audit Act 1977 provides
that for each financial year, the Treasurer is to present to the Legislative
Assembly a Bill for an ordinary Annual Appropriation Act.
The policy objectives of the Bill, the reasons for those objectives and the
ways in which the policy objectives will be achieved by the Bill are
detailed in the Budget Speech and the accompanying Budget Papers.
The Bill provides for:
· Appropriation for 2005-06 to fund the cost of delivering departmental
outputs, administered items and equity adjustment in that year and
certain outputs, administered items and equity adjustment delivered in
the previous year but not previously funded; and
· Supply for 2006-07 to allow the normal operations of government to
continue until the Appropriation Bill for 2006-07 receives assent.
Notes on Provisions
Clause 1 provides for the short title of the Act.
Clause 2 provides that for each department, the vote amount mentioned for
the department in Schedule 2 is appropriated for the 2005-06 financial year
for the department for application to its departmental outputs, equity
adjustment and administered items as stated in Schedule 2.
It also provides that part of the vote amount may be applied for some
payments necessary in respect of departmental outputs, equity adjustment
and administered items delivered in 2004-05 which departments were not
paid for by the end of that financial year.
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Appropriation Bill 2005
Clause 2(3) provides that the total amount of $21 306 386 000 includes the
amount already authorised by the Appropriation Act 2004, section 3, to be
paid for the financial year starting 1 July 2005.
Clause 3 provides that the amount of $11 000 000 000 is authorised to be
paid for the 2006-07 financial year for departments for application to their
departmental outputs, equity adjustment and administered items until the
Appropriation Bill for 2006-07 receives assent.
Clause 4 repeals the Appropriation Act 2002 (2002 Act No. 27) and
Appropriation Act (No. 2) 2002 (2002 Act No. 69).
Schedule 1 sets out how the amount appropriated from the Consolidated
Fund for the year starting on 1 July 2005 is to be distributed between
departments, other than the Legislative Assembly and parliamentary
service.
Schedule 2 details the total amount appropriated for each department for
application to its outputs, equity adjustment and administered items for the
financial year.
Accountable Officers may apply the total of funds received from the
Treasurer for departmental outputs across the individual outputs of the
department.
Under section 24 of the Financial Administration and Audit Act 1977, the
Treasurer may pay a department's appropriation in amounts different to
those set out in the Annual Appropriation Act, provided that the total Vote
amount is not exceeded. If the Treasurer considers there is a surplus in one
or more of the headings of a department for a financial year and a
deficiency in another heading or headings of a department, the Treasurer
may allocate an amount to one or more of the headings that are deficient
from the heading or headings in surplus.
Section 24A of the Act, provides for an amount called the Treasurer's
Advance which is included in the Vote for the Treasury Department but
which may be used for purposes that may be delivered by any department.
Amounts from the Treasurer's Advance may be paid by the Treasurer to
other departments for departmental outputs, equity adjustments or
administered items, even though the amount appropriated to other
departments under the relevant Annual Appropriation Act for the financial
year will be exceeded.
In 1999-2000 an equity return charge was introduced to reflect the cost of
capital in the delivery of services. During 2004-05, a decision was taken to
discontinue the equity return charge effective from 1 July 2004. This
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Appropriation Bill 2005
decision reflects the difficulties in applying the concept in the public sector
context. Most other jurisdictions over recent years have adopted similar
positions in relation to the application of asset charges. Therefore, equity
return is not included in the 2004-05 Estimated Actual for departmental
appropriation payments or for the 2005-06 Vote.
The Office of the Information Commissioner separated from the Office of
the Ombudsman on 24 February 2005, and is being treated as a department
until 30 June 2005. On 1 July 2005 it is anticipated the Office of the
Information Commissioner will become a statutory body and therefore
appropriation has not been provided in the 2005-06 Vote.
Legislative Standards
Consultation
Appropriate consultation has been undertaken with departments in
establishing the appropriations payable to them pursuant to this Bill.
© State of Queensland 2005