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Title

Ch11 Financial legislation / APPROPRIATION AND SUPPLY BILLS / Ordinary annual services of the Government

Database

House Practice

Date

01-05-2005

Source

House of Reps

Parl No.

41

Chapter

Financial legislation

Chapter No.

Chapter 11

Page

415

Section No.

 

System Id

procedural/practcer/chapter11.15.doc


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Ch11 Financial legislation / APPROPRIATION AND SUPPLY BILLS / Ordinary annual services of the Government



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House of Representatives                                Ch 11                                                 p 415

 

Financial legislation / APPROPRIATION AND SUPPLY BILLS

 

Ordinary annual services of the Government

The Constitution provides that a proposed law which appropriates revenue or moneys for the ordinary annual services of the Government shall deal only with such appropriation (to avoid what is known as ‘tacking’ on to a bill other measures which the Senate could otherwise amend). 1 The Senate may not amend any proposed law appropriating revenue or moneys for the ordinary annual services of the Government. 2 The main appropriation bill (Appropriation Bill (No. 1)) for the year has, since soon after Federation, provided for the ordinary annual services of the Government, and a second appropriation bill has contained provision for expenditure not appropriately included in the main bill. The second bill (Appropriation Bill (No. 2)) has, in earlier years, been called Appropriation (Works and Buildings), Appropriation (Works and Services) and Appropriation (Special Expenditure). The second appropriation bill is considered, constitutionally, to be capable of amendment by the Senate.

Subsequent bills with equivalent purposes are treated similarly. Appropriation Bill (No. 3) and Supply Bill (No. 1) are for the ordinary annual services of the Government and are therefore not capable of amendment by the Senate. Appropriation Bill (No. 4) and Supply Bill (No. 2) are capable of amendment by the Senate, subject to the restrictions imposed by section 53 of the Constitution. As the parliamentary appropriation and supply bills are not for ordinary annual services of government they are therefore also subject to possible Senate amendment.

The distribution of appropriations between the (No. 1) and (No. 2) bills was the subject of negotiation and agreement between the Government and the Senate in 1965, when the Treasurer announced that henceforth there would be a separate bill (Appropriation Bill (No. 2)), subject to amendment by the Senate, containing appropriations for expenditure on:

  • the construction of public works and buildings;

  • the acquisition of sites and buildings;

  • items of plant and equipment which are clearly identifiable as capital expenditure;

  • grants to the States under section 96 of the Constitution; and

  • new policies not authorised by special legislation (subsequent appropriations to be included in the Appropriation Bill (No. 1) not subject to amendment by the Senate). 3

    • In 1999, with the introduction of accrual accounting to the Budget process, the Senate agreed to government proposals to vary the contents of the two appropriation bills as follows:

    1. items regarded as equity injections and loans be regarded as not part of the annual services;
    2. all appropriation items for continuing activities for which appropriations have been made in the past be regarded as part of ordinary annual services;
    3. all appropriations for existing asset replacement be regarded as provision for depreciation and part of ordinary services. 4


    Constitution, s. 54.



    Constitution, s. 53.



    H.R. Deb. (13.5.65) 1484-5.



    Senate Standing Committee on Appropriations and Staffing, Thirtieth report , March 1999. J 1999/620, 777.