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House of Representatives                                Ch 11                                                 p 414

Summary of annual financial legislation

The Parliament appropriates moneys from the Consolidated Revenue Fund on an annual basis in order to fund expenditure by the Government. Prior to 1999 the appropriation of funds by the annual appropriation bills expired at the end of the financial year on 30 June. The annual appropriations, although related to activity in a specific year, no longer lapse at the end of the year—appropriations for departmental expenses are open ended, while appropriations for administered expenses are limited to expenses incurred in that year.

Appropriation Bill (No. 1) is a key element in ‘the Budget’; it contains details of estimates for ordinary annual government services—that is, continuing expenditure by government agencies on services for existing policies. ¹

Appropriation Bill (No. 2) is also introduced as part of the Budget and appropriates funds for expenditure on new policies, new capital expenditure, and grants to the States under section 96 of the Constitution.

Appropriation (Parliamentary Departments) Bill , also introduced as part of the Budget, appropriates funds for the parliamentary departments.

Appropriation Bills (No. 3) and (No. 4) and Appropriation (Parliamentary Departments) Bill (No. 2) are referred to as the additional or supplementary estimates. Appropriation Bill (No. 3) appropriates funds for administrative expenses, while Appropriation Bill (No. 4) provides for capital expenditure—thus they parallel Appropriation Bills (No. 1) and (No. 2) respectively. They are necessary because departments exhaust some of the funds provided by Appropriation Bills (No. 1) and (No. 2). The Appropriation (Parliamentary Departments) Bill (No. 2) performs the same function in respect of the parliamentary departments. ²

Supply bills make interim provision for expenditure when the main appropriation bills are not going to be passed before the start of the financial year on 1 July. Supply bills are no longer part of the normal annual routine, but were necessary in the past when Budgets were introduced in August. As with the appropriation bills, (No. 1) referred to salaries and administrative expenses and (No. 2) provided for capital expenditure. The Supply (Parliamentary Departments) Bill provided funds for parliamentary expenditure. ³

The Advance to the Minister for Finance and Administration , and the advances to the Presiding Officers, are allocations of funds in the main appropriation bills and (if introduced) the supply bills in order to meet emergency or unforeseen expenditure during the course of the financial year ( see page 422 ).

Since 1994 usually introduced in May. See Treasurer’s statement on change from the traditional August Budget, H.R. Deb. (17.12.93) 4398-400.

Now generally introduced between October and February, but traditionally in April when the Budget took place in August. Other appropriation bills introduced to cover special expenditure—for example as Appropriation Bill (No. 3)—may cause the additional estimates to be numbered differently—for example (No. 4) and (No. 5). For further coverage of additional appropriation bills see p. 421 .

For further coverage of supply bills see p. 422 .