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19: Appropriations

Note 19A: Annual Appropriations

Annual appropriations for 2019

Annual appropriation1, 2

Adjustments to appropriation3

Total appropriation

Appropriation applied in 2019 (current and prior years)

Variance4

$'000

$'000

$'000

$'000

$'000

Departmental

Ordinary annual services

3,240,202

170,677

3,410,879

(3,627,181)

(216,302)

Capital budget5

132,322

-

132,322

(144,952)

(12,630)

Other services

Equity

28,055

-

28,055

(25,131)

2,924

Total departmental

3,400,579

170,677

3,571,256

(3,797,264)

(226,008)

Annual appropriation1, 2

Adjustments to appropriation3

Total appropriation

Appropriation applied in 2019 (current and prior years)

Variance4

$'000

$'000

$'000

$'000

$'000

Administered

Ordinary annual services

Capital budget5

-

-

-

-

-

Administered items

6,181

-

6,181

1,540

4,641

Total administered

6,181

-

6,181

1,540

4,641

1 $2,300,000 from Annual Appropriation Act (No.3) 2018-19 has been withheld under section 51 of the PGPA Act. $20,000,000 from Annual Appropriation Act (No.1) 2018-19 has been withheld under section 51 of the PGPA Act and transferred to Annual Appropriation Act (No.3) 2018-19 - Departmental Capital Budget (DCB). Annual Appropriation for Administered consists of $6,181,000 for 2018-19. $4,278,000 has been withheld under section 51 of the PGPA Act.

2 Annual Appropriation ordinary annual services consists of $16,205,000 transferred to ACNC special account.

3 Adjustments represent PGPA Act section 74 receipts.

4 Departmental variance is due to accrued expenses from prior year being drawn down in the current year from operating, DCB and equity funding.

Administered variance is due to:

- unspent annual appropriation for the year of $623,409.56;

- plus quarantined amount of $4,278,000 which has been moved to 2019-20; and

- less accrued campaign expenses of $259,917.59 from the prior year drawn down in the current year.

5 Departmental and Administered Capital Budgets are appropriated under Appropriation Acts (No.1, 3, 5). They form part of ordinary annual services, and are not separately identified in the Appropriation Acts.

Annual appropriations for 2018

Annual appropriation

Adjustments to appropriation2

Total appropriation

Appropriation applied in 2018 (current and
prior years)1

Variance3

$'000

$'000

$'000

$'000

$'000

Departmental

Ordinary annual services

3,199,160

145,945

3,345,105

(3,350,971)

( 5,866)

Capital budget4, 5

112,589

-

112,589

(117,318)

( 4,729)

Other services

Equity

27,890

-

27,890

(60,655)

( 32,765)

Total departmental

3,339,639

145,945

3,485,584

(3,528,944)

(43,360)

Annual appropriation

Adjustments to appropriation2

Total appropriation

Appropriation applied in 2018 (current and
prior years)1

Variance3

$'000

$'000

$'000

$'000

$'000

Administered

Ordinary annual services

Capital budget5

-

-

-

-

-

Administered items

5,876

-

5,876

570

5,306

Total administered

5,876

-

5,876

570

5,306

1 $543,000 from the Annual Appropriation Act (No.1) has been withheld under section 51 of the PGPA Act. Annual Appropriation for Administered consists of $5,876,000 for 2017-18 Annual Appropriation Act (No. 1). $4,838,000 has been withheld under section 51 of the PGPA Act.

2 Adjustments represent PGPA Act section 74 receipts.

3 The variance in the departmental expenses is due to accrued expenses from prior year being drawn down in the current year from operating and equity funding, as well as unspent appropriation from departmental capital budget. Administered variance is due to the unspent annual appropriation for the year of $467,633.66 plus quarantined amount of $4,838,000 which has been moved to 2018-19 financial year.

4. The allocation of amounts between capital and operating is set out in the 2017-18 Portfolio Budget Statement as there is no itemisation in appropriation acts. A re-allocation of $15.6 million from department operating to departmental capital was approved by the Finance Minister on 13/11/2017. As re-allocations between operating and capital are not permitted under accounting standards, they have not been reflected in this appropriation note.

5 Departmental and Administered Capital Budgets are appropriated under Appropriation Acts (No.1, 3, 5). They form part of ordinary annual services, and are not separately identified in the Appropriation Acts.

Note 19B: Unspent Annual Appropriations

2019

2018

$'000

$'000

Departmental

Appropriation Act (No.2) 2015-16

-

9,676

Appropriation Act (No.4) 2015-16

-

2,517

Supply Act (No.2) 2016-171

3,557

3,557

Appropriation Act (No.2) 2016-172

351

630

Appropriation Act (No.1) 2017-18

-

348,965

Appropriation Act (No.1) 2017-18 - DCB

-

36,489

Appropriation Act (No.2) 2017-18

1,336

2,904

Appropriation Act (No.4) 2017-18

-

291

Appropriation Act (No.1) 2017-18 - Cash

-

25,900

Appropriation Act (No.1) 2018-19

242,333

-

Appropriation Act (No.1) 2018-19 - DCB

19,458

-

Appropriation Act (No.2) 2018-19

5,061

-

Appropriation Act (No.3) 2018-193

6,946

-

Appropriation Act (No.3) 2018-19 - DCB

20,000

-

Appropriation Act (No.4) 2018-19

-

-

Appropriation Act (No.1) 2018-19 - Cash

41,122

-

Total departmental

340,164

430,929

2019

2018

$'000

$'000

Administered

Appropriation Act (No.1) 2015-164

-

211

Appropriation Act (No.1) 2016-175

2,843

2,843

Supply Act (No.1) 2016-176

2,210

2,210

Appropriation Act (No.1) 2017-187

5,046

5,132

Appropriation Act (No.1) 2018-198

4,604

-

Total administered

14,703

10,396

Appropriation amounts in this note differ from those reported in the financial statements by the following:

1 $2,000,000 reduced through a section 51 determination and $1,556,924.48 remaining balance that will automatically lapse from 1 July 2019.

2 $350,970.65 that will automatically lapse from 1 July 2019.

3 $2,300,000 reduced through a section 51 determination.

4 $211,182.74 removed through 2015-16 annual Appropriation Acts repeal at the start of 1 July 2018.

5 $2,134,000 (2016-17 financial year) and $711,610.45 (2017-18 financial year) reduced through a section 51 determination.

6 $2,210,000 reduced through a section 51 determination.

7 $4,838,000 reduced through a section 51 determination.

8 $4,278,000 reduced through a section 51 determination.

Note 19C: Special Appropriations

Appropriation applied

Appropriation applied

2019

2018

$'000

$'000

Authority

Taxation Administration Act 1953 - section 16 1,2

112,711,591

106,905,673

Product Grants and Benefits Administration Act 2000 - section 55

72,325

76,574

Superannuation Guarantee (Administration) Act 1992 - section 71

551,822

404,924

Small Superannuation Accounts Act 1995 - section 76(9)

66

104

Public Governance, Performance and Accountability Act 2013 - section 77 2

109,209

93,256

Total

113,445,013

107,480,531

The Department of Home Affairs (Home Affairs) spends money from the Consolidated Revenue Fund on behalf of the ATO.

1 Includes payments of $255,573,168 (2018: $227,642,802) made on behalf of the ATO by Home Affairs.

2 $219,139 of section 77 appropriations have been reclassified as section 16 appropriations for comparative purposes.

Accounting Policy

Appropriations provide a legislative basis to issue refunds. The amounts disclosed above represent the actual refunds paid by appropriation source for the financial year.

Note 19D: Compliance with statutory conditions for payments from the Consolidated Revenue Fund

For amounts to be paid out of the Consolidated Revenue Fund under section 83 of the Constitution there must be an appropriation made by law. There have been circumstances where amounts have been paid out to taxpayers without any legislative basis and are considered a technical breach of section 83. It is impractical to fully remove the potential for section 83 breaches for all payments due to the manual nature of some transactions.

Appropriations identified as subject to conditions

Payments in 2018-19
$

Review complete?

Breaches identified

#

Amount recovered $

Amount to be recovered
$

Remedial action taken

Small Business Superannuation Clearing House (SBSCH) Special Account

22,474.29

Yes

40

14,072.08

8,412.21

Control

Superannuation Holding Accounts (SHA) Special Account

12,899.65

Yes

57

-

12,899.65

Control

TOTAL

35,373.94

97

14,072.08

21,311.86

The ATO performs an annual risk assessment for breaches of appropriations with statutory conditions as well as annual appropriations.