Scrutiny of Standing Appropriations [2024] AUSStaCSBSD 129 (26 June 2024)

• Chapter 3 : Scrutiny of standing appropriations267

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Chapter 3 :
Scrutiny of standing appropriations^[267]

3.1 Standing appropriations enable entities to spend money from the Consolidated Revenue Fund on an ongoing basis. Their significance from an accountability perspective is that, once they have been enacted, the expenditure they involve does not require regular parliamentary approval and therefore escapes parliamentary control. They are not subject to approval through the standard annual appropriations process.

3.2 By allowing the executive government to spend unspecified amounts of money for an indefinite time into the future, provisions which establish standing appropriations may, depending on the circumstances of the legislation, infringe on the committee’s terms of reference relating to the delegation and exercise of legislative power.

3.3 Therefore, the committee has determined that, as part of its standard procedures for reporting on bills, it should draw senators’ attention to bills that establish or amend standing appropriations or establish, amend or continue in existence special accounts.^[268] It will do so under provisions 1(a)(iv) and (v) of its terms of reference, which require the committee to report on whether bills:

(iv) inappropriately delegate legislative powers; or

(v) insufficiently subject the exercise of legislative power to parliamentary scrutiny.^[269]

3.4 The committee draws the following bills to the attention of senators:

• Treasury Laws Amendment (Financial Market Infrastructure and Other Measures) Bill 2024^[270]

• Treasury Laws Amendment (Responsible Buy Now Pay Later and Other Measures) Bill 2024^[271]

Senator Dean Smith

Chair

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^[267] This report can be cited as: Senate Standing Committee for the Scrutiny of Bills, Chapter 3: Scrutiny of standing appropriations, [2023] AUSStaCSBSD 129.

^[268] The Consolidated Revenue Fund is appropriated for expenditure for the purposes of special accounts by virtue of section 80 of the Public Governance, Performance and Accountability Act 2013.

^[269] For further detail, see Senate Standing Committee for the Scrutiny of Bills Fourteenth Report of 2005.

^[270] Item 14 of Schedule 1 to the bill seeks to insert proposed sections 846A and 846B into the Corporations Act 2001 to appropriate the Consolidated Revenue Fund for making a crisis payment.

^[271] Item 7 of Schedule 6 to the bill seeks to amend the appropriation in section 22 of the Federal Financial Relations Act 2009 to provide that national skills and workforce development payments are made out of the Consolidated Revenue Fund.