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19: Appropriations

Note 19A: Annual appropriations

Annual appropriations for 2021

Annual appropriation

Adjustments to appropriation2

Total appropriation

Appropriation applied in 2021 (current and prior years)

Variance3

$'000

$'000

$'000

$'000

$'000

Departmental

Ordinary annual services1

3,885,177

136,953

4,022,130

(4,168,444)

(146,314)

Capital budget4

118,644

-

118,644

(93,494)

25,150

Other services

Equity5

126,249

-

126,249

(55,407)

70,842

Total departmental

4,130,070

136,953

4,267,023

(4,317,345)

(50,322)

Administered

Ordinary annual services1

Administered items

7,915

-

7,915

(41)

7,874

Total administered

7,915

-

7,915

(41)

7,874

1.Ordinary annual services annual appropriation consists of $19,766,000 transferred to ACNC special account, $8,854,000 withheld from the Supply Act (No.1) 2020-21 and $48,655,000 withheld from the Annual Appropriation Act (No.1) 2020-21 through a section 51 withholding of the PGPA Act.

Annual Appropriation for Administered consists of $7,915,000 for 2020-21.

2.Adjustments represent PGPA Act section 74 receipts totalling $132,809,594 and $4,143,356 transferred from the Australian Securities and Investments Commission (ASIC) under PGPA Act Section 75 transfer.

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 unspent appropriation from departmental capital budget and equity funding.

Administered variance is due to unspent annual appropriation for the year of $7,874,096

4.Departmental 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. The annual appropriation consists of $958,000 withheld from the Supply Act (No.1) 2020-21 through a section 51 withholding of the PGPA Act.

5.Equity annual appropriation consists of $26,193,000 withheld from the Annual Appropriation Act (No.2) 2020-21 through a section 51 withholding of the PGPA Act.

Annual appropriations for 2020

Annual appropriation

Adjustments to appropriation2

Total appropriation

Appropriation applied in 2020 (current and prior years)

Variance3

$'000

$'000

$'000

$'000

$'000

Departmental

Ordinary annual services1

3,474,979

151,097

3,626,076

(3,671,619)

(45,543)

Capital budget4

117,737

-

117,737

(95,305)

22,432

Other services

Equity5

76,607

-

76,607

(37,193)

39,414

Total departmental

3,669,323

151,097

3,820,420

(3,804,117)

16,303

Administered

Ordinary annual services1

Administered items

7,848

-

7,848

(2,769)

5,079

Total administered

7,848

-

7,848

(2,769)

5,079

1.Ordinary annual services annual appropriation consists of $13,718,000 withheld from the Annual Appropriation Act (No.1) 2019-20 through a section 51 withholding of the PGPA Act & $16,059,000 transferred to ACNC special account.

Annual Appropriation for Administered consists of $7,848,000 for 2019-20.

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 unspent appropriation from departmental capital budget and equity funding.

Administered variance is due to:

- unspent annual appropriation for the year of $5,186,665.86

- less accrued campaign expenses of $107,625.51 from the prior year drawn down in the current year.

4.Departmental 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.

5.Equity annual appropriation consists of $1,989,000 withheld from the Annual Appropriation Act (No.2) 2019-20 through a section 51 withholding of the PGPA Act.

Note 19B: Unspent annual appropriations

2021

2020

$'000

$'000

Departmental

Appropriation Act (No.2) 2017-18

-

1,156

Appropriation Act (No.2) 2018-191

1,129

2,151

Appropriation Act (No.3) 2018-19

-

4,646

Supply Act (No.1) 2019-20-DCB

-

350

Supply Act (No.2) 2019-20

2,198

2,228

Appropriation Act (No.1) 2019-202,3

5,048

306,320

Appropriation Act (No.1) 2019-20 - DCB

-

62,751

Appropriation Act (No.2) 2019-204

9,590

9,632

Appropriation Act (No.3) 2019-20

-

42,732

Appropriation Act (No.4) 2019-20

17,208

29,434

Appropriation Act (No.1) 2019-20 - Cash

-

30,685

Supply Act (No.1) 2020-215

78,338

-

Supply Act (No.1) 2020-21 - DCB6

87,290

-

Supply Act (No.2) 2020-21

3,868

-

Appropriation Act (No.1) 2020-217

383,925

-

Appropriation Act (No.1) 2020-21 - DCB

958

-

Appropriation Act (No.2) 2020-218

80,298

-

Appropriation Act (No.1) 2020-21 - Cash

38,083

-

Total unspent departmental appropriations

707,933

492,085

Administered

Appropriation Act (No.1) 2017-189

-

5,046

Appropriation Act (No.1) 2018-1910

4,794

4,794

Appropriation Act (No.1) 2019-20

2,621

2,622

Appropriation Act (No.3) 2019-2011

2,469

2,469

Supply Act (No.1) 2019-20

96

96

Appropriation Act (No.1) 2020-21

7,445

-

Supply Act (No.1) 2020-21

429

-

Total unspent administered appropriations

17,854

15,027

1.$850,000 reduced through a section 51 determination, and $279,075 that will automatically lapse from 1 July 2021.

2.$5,048,475.69 increase in 2021 due to transfer from the Australian Securities and Investments Commission (ASIC) under PGPA Act Section 75 transfer.

3.In 2020, $13,718,000 reduction through section 51 determination. Comparative has been restated from prior year ($292,602,000) to include this withheld amount which was disclosed in footnote but not included in the unspent balance in error.

4.$1,989,000 reduced through a section 51 determination in June 2020, and $4,036,000 reduced through a section 51 determination in June 2021.

5.$8,854,000 is permanently withheld through a section 51 determination.

6.$958,000 is permanently withheld through a section 51 determination.

7.$48,655,000 is permanently withheld through a section 51 determination and $4,143,356.36 increased due to transfer from the Australian Securities and Investments Commission (ASIC) under PGPA Act Section 75 transfer.

8.$26,193,000 is permanently withheld through a section 51 determination.

9.$5,045,716 removed through 2017-18 Annual Appropriation Acts repeal at the start of 1 July 2020.

10.$4,278,000 reduced through a section 51 determination, and $515,784 that will automatically lapse from 1 July 2021.

11.$2,469,000 reduced through a section 51 determination.

Note 19C: Special appropriations

Appropriation applied

Appropriation applied

Authority

2021

2020

$'000

$'000

Taxation Administration Act 1953 - section 16 1

203,531,860

160,515,052

Product Grants and Benefits Administration Act 2000 - section 55

94,923

90,832

Superannuation Guarantee (Administration) Act 1992 - section 71

942,396

633,759

Small Superannuation Accounts Act 1995 - section 76(9)

268

176

Public Governance, Performance and Accountability Act 2013 - section 77

93,965

100,355

Total

204,663,412

161,340,174

1.The Department of Home Affairs made payments of $21,152,176 (2020: $197,642,621) from the Consolidated Revenue Fund on behalf of the ATO.

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 in accordance with section 83 of the Constitution there must be an appropriation made by law.
Amounts are sometimes paid to taxpayers in the absence of an appropriation contrary to section 83. While there are controls in place to prevent this from happening, it is impossible to fully remove the risk of such payments being made due to the nature of some transactions.
The table below records payments identified in the year ending 30 June 2021 that were made without an appropriation.
The payments identified include business activity statement (BAS) refunds paid between 1 July 2000 and 29 June 2012 under the ATO’s historical practice of revising a taxpayer’s BAS to amend net amounts and net fuel amounts without issuing an assessment.1 The decision of the High Court in Commissioner of Taxation v Travelex Limited [2021] HCA 8, which was handed down on 10 March 2021, has determined that the ATO’s BAS revision practice had no legal effect. The underlying correctness of the amounts refunded is not in question. The issue is a technical one that due to the ATO’s historical practice such amounts were refunded without the support of an assessment.

Appropriations identified as subject to conditions

Value of payments

$

Financial years

Review complete

Breaches identified

#

Amount recovered
$

Amount to be recovered
$

Remedial action taken

Small Business Superannuation Clearing House (SBSCH) Special Account

61,655.63

2020-21

Yes

68

39,196.65

22,458.98

Control

Small Business Superannuation Clearing House (SBSCH) Special Account

92,431.23

2017-18 to 2019-20

Yes

134

42,737.41

49,693.82

Control

Services for Other Entities and Trust Moneys Special Account (SOETM)

71.53

2020-21

Yes

1

71.53

-

Control

BAS Refunds

7,662,472,544.13

2000-01 to 2011-12

Yes

1,161,555

-

-

Control

TOTAL

7,662,626,702.52

1,161,758

82,005.59

72,152.80

The ATO performs annual risk assessments to mitigate risks of making payments contrary to section 83.

1.Section 15C of the Taxation Administration Act 1953 commenced on 29 June 2012 and provides appropriation for such refunds paid on or after that date.