Appropriation Act (No. 6) 2023-2024

The Appropriation Act (No. 6) 2023-2024 (Cth) operates as a supplementary public finance instrument that legalises the withdrawal of an additional 453,458,000 AUD from the Consolidated Revenue Fund (CRF) for the financial year ending 30 June 2024. While the title suggests a broad-spectrum fiscal intervention, the actual application of these funds is highly concentrated. The Schedule reveals that the Act allocates zero dollars for new administered outcomes, zero dollars for payments to the States, Territories, or local government authorities, and zero dollars for corporate entity items. Instead, the entire 453,458,000 AUD is designated as non-operating equity injections under the category of other departmental items.

This funding is restricted to three departments: the Department of Defence receives 452,748,000 AUD (representing 99.84% of the total appropriation), the Department of Home Affairs receives 550,000 AUD, and the Department of Employment and Workplace Relations receives 160,000 AUD. The Act was assented to on 26 June 2024, a mere four days before the end of the 2023-2024 financial year. This indicates that its mechanical function is to retroactively legitimise or facilitate last-minute capital restructuring and asset acquisitions that occurred at the tail end of the fiscal year.

The official purpose of the Act, as claimed in parliamentary materials, is to appropriate additional money out of the CRF for certain expenditure and related purposes. However, testing this against the incentives and mechanical design of the instrument shows that it acts as a highly targeted capital buffer, primarily shielding the defence sector from capital shortfalls. Finally, the Act contains an automatic self-termination clause. Under section 14, the entire Act is repealed at the start of 1 July 2026, giving the executive and the Australian National Audit Office a fixed two-year window to draw down, reconcile, and audit the expenditure before the statutory authority is wiped from the active statute book.

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Commonwealth Coat of Arms of Australia

Appropriation Act (No. 6) 2023‑2024

No. 46, 2024

An Act to appropriate additional money out of the Consolidated Revenue Fund for certain expenditure, and for related purposes

Contents

Part 1—Preliminary

1 Short title

2 Commencement

3 Definitions

4 Portfolio statements

5 Notional transactions between entities that are part of the Commonwealth

Part 2—Appropriation items

6 Summary of appropriations

7 State, ACT, NT and local government items

8 Administered items

9 Administered assets and liabilities items

10 Other departmental items

11 Corporate entity items

Part 3—Miscellaneous

12 Crediting amounts to special accounts

13 Appropriation of the Consolidated Revenue Fund

14 Repeal of this Act

Schedule 1—Services for which money is appropriated

Commonwealth Coat of Arms of Australia

Appropriation Act (No. 6) 2023-2024

No. 46, 2024

An Act to appropriate additional money out of the Consolidated Revenue Fund for certain expenditure, and for related purposes

[Assented to 26 June 2024]

The Parliament of Australia enacts:

Part 1—Preliminary

1 Short title

This Act is the Appropriation Act (No. 6) 2023‑2024.

2 Commencement

(1) Each provision of this Act specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.

Commencement information
Column 1 Column 2 Column 3
Provisions Commencement Date/Details
1. The whole of this Act The day this Act receives the Royal Assent. 26 June 2024

Note: This table relates only to the provisions of this Act as originally enacted. It will not be amended to deal with any later amendments of this Act.

(2) Any information in column 3 of the table is not part of this Act. Information may be inserted in this column, or information in it may be edited, in any published version of this Act.

3 Definitions

In this Act:

administered assets and liabilities item means an amount set out in Schedule 1 in relation to a non‑corporate entity opposite the heading “Administered Assets and Liabilities”.

administered item means an amount set out in Schedule 1 opposite an outcome for a non‑corporate entity under the heading “New Administered Outcomes”.

corporate entity means:

(a) a corporate Commonwealth entity within the meaning of the Public Governance, Performance and Accountability Act 2013; or

(b) a Commonwealth company within the meaning of that Act.

corporate entity item means the amount set out in Schedule 1 in relation to a corporate entity under the heading “Non‑operating”.

expenditure means payments for expenses, acquiring assets, making loans or paying liabilities.

item means any of the following:

(a) a State, ACT, NT and local government item;

(b) an administered item;

(d) an other departmental item;

(e) a corporate entity item.

non‑corporate entity means:

(a) a non‑corporate Commonwealth entity within the meaning of the Public Governance, Performance and Accountability Act 2013; or

(b) the High Court.

other departmental item means an amount set out in Schedule 1 in relation to a non‑corporate entity opposite the heading “Equity Injections”.

Portfolio Additional Estimates Statements means the Portfolio Additional Estimates Statements that were tabled in the Senate or the House of Representatives in relation to the Bill for the Appropriation Act (No. 3) 2023‑2034 and the Bill for the Appropriation Act (No. 4) 2023‑2024.

Portfolio Budget Statements means the Portfolio Budget Statements that were tabled in the Senate or the House of Representatives in relation to the Bill for the Appropriation Act (No. 1) 2023‑2024 and the Bill for the Appropriation Act (No. 2) 2023‑2024.

portfolio statements means:

(a) the Portfolio Budget Statements; and

(b) the Portfolio Additional Estimates Statements; and

Portfolio Supplementary Additional Estimates Statements means the Portfolio Supplementary Additional Estimates Statements that were tabled in the Senate or the House of Representatives in relation to the Bill for this Act and the Bill for the Appropriation Act (No. 5) 2023‑2024.

special account has the same meaning as in the Public Governance, Performance and Accountability Act 2013.

State, ACT, NT and local government item means an amount set out in Schedule 1 opposite an outcome for a non‑corporate entity under the heading “Payments to States, ACT, NT and local government”.

4 Portfolio statements

The portfolio statements are declared to be relevant documents for the purposes of section 15AB of the Acts Interpretation Act 1901.

Note: See paragraph 15AB(2)(g) of the Acts Interpretation Act 1901 which provides that the material that may be considered in the interpretation of a provision of an Act includes any document that is declared by the Act to be a relevant document.

5 Notional transactions between entities that are part of the Commonwealth

For the purposes of this Act, notional transactions between non‑corporate entities are to be treated as if they were real transactions.

Note: This section applies, for example, to a “payment” between non‑corporate entities that are both part of the Commonwealth. One of the effects of this section is that the payment will be debited from an appropriation for the paying non‑corporate entity, even though no payment is actually made from the Consolidated Revenue Fund. This is consistent with section 76 of the Public Governance, Performance and Accountability Act 2013.

Part 2—Appropriation items

6 Summary of appropriations

The total of the items specified in Schedule 1 is $453,458,000.

Note: Sections 74 to 75 of the Public Governance, Performance and Accountability Act 2013 provide for the adjustment of amounts appropriated by this Act.

7 State, ACT, NT and local government items

(1) The amount specified in a State, ACT, NT and local government item for an outcome for a non‑corporate entity may be applied for the purpose of making payments to or for the States, the Australian Capital Territory, the Northern Territory and local government authorities for the purpose of contributing to achieving that outcome.

(2) If the portfolio statements indicate that activities of a particular kind were intended to be treated as activities in respect of a particular outcome, then expenditure for the purpose of carrying out those activities is taken to be expenditure for the purpose of contributing to achieving the outcome.

8 Administered items

(1) The amount specified in an administered item for an outcome for a non‑corporate entity may be applied for expenditure for the purpose of contributing to achieving that outcome.

9 Administered assets and liabilities items

(1) The amount specified in an administered assets and liabilities item for a non‑corporate entity may be applied for expenditure for the purpose of contributing to achieving any outcome specified for the entity:

(a) in Schedule 1 to this Act; or

(b) in Schedule 1 to the Appropriation Act (No. 1) 2023‑2024; or

(d) in Schedule 1 to the Appropriation Act (No. 3) 2023‑2024; or

(e) in Schedule 2 to the Appropriation Act (No. 4) 2023‑2024; or

(f) in Schedule 1 to the Appropriation Act (No. 5) 2023‑2024.

10 Other departmental items

The amount specified in an other departmental item for a non‑corporate entity may be applied for the departmental expenditure of the entity.

11 Corporate entity items

(1) The amount specified in a corporate entity item for a corporate entity may be paid to the entity to be applied for the purposes of the entity.

(2) If:

(a) an Act provides that a corporate entity must be paid amounts that are appropriated by the Parliament for the purposes of the entity; and

(b) Schedule 1 contains a corporate entity item for that entity;

then the entity must be paid the full amount specified in the item.

Part 3—Miscellaneous

12 Crediting amounts to special accounts

If any of the purposes of a special account is a purpose that is covered by an item (whether or not the item expressly refers to the special account), then amounts may be debited against the appropriation for that item and credited to that special account.

13 Appropriation of the Consolidated Revenue Fund

The Consolidated Revenue Fund is appropriated as necessary for the purposes of this Act, including the operation of this Act as affected by the Public Governance, Performance and Accountability Act 2013.

14 Repeal of this Act

This Act is repealed at the start of 1 July 2026.

Schedule 1—Services for which money is appropriated

Note: See sections 6 and 13.

Abstract
Portfolio	Total
	$'000

Defence	452,748
Employment and Workplace Relations	160
Home Affairs	550

Total	453,458








APPROPRIATIONS

SUMMARYSummary of Appropriations (bold figures)—2023‑2024 Actual Available Appropriation (italic figures)—2023‑2024
Portfolio Payments to States, ACT, NT and local government New Administered Outcomes Non- operating Total
$'000 $'000 $'000 $'000
Agriculture, Fisheries and Forestry ‑ ‑ ‑ ‑
‑ ‑ 275,721 275,721
Attorney‑General's ‑ ‑ ‑ ‑
‑ ‑ 123,842 123,842
Climate Change, Energy, the ‑ ‑ ‑ ‑
Environment and Water ‑ ‑ 8,959,150 8,959,150
Defence ‑ ‑ 452,748 452,748
‑ ‑ 12,211,689 12,211,689
Education ‑ ‑ ‑ ‑
152,204 ‑ 22,377 174,581
Employment and Workplace Relations ‑ ‑ 160 160
‑ ‑ 44,320 44,320
Finance ‑ ‑ ‑ ‑
‑ ‑ 997,068 997,068
Foreign Affairs and Trade ‑ ‑ ‑ ‑
‑ ‑ 187,289 187,289
Health and Aged Care ‑ ‑ ‑ ‑
‑ ‑ 331,240 331,240
Home Affairs ‑ ‑ 550 550
‑ ‑ 229,075 229,075
Industry, Science and Resources ‑ ‑ ‑ ‑
‑ ‑ 241,859 241,859
Infrastructure, Transport, Regional ‑ ‑ ‑ ‑
Development, Communications and 860,652 ‑ 3,676,066 4,536,718
the Arts
Prime Minister and Cabinet ‑ ‑ ‑ ‑
3,635 ‑ 34,317 37,952
Social Services ‑ ‑ ‑ ‑
‑ ‑ 100,541 100,541
Treasury ‑ ‑ ‑ ‑
‑ ‑ 856,180 856,180
Total: Bill 6 ‑ ‑ 453,458 453,458
1,016,491 ‑ 28,290,734 29,307,225

AGRICULTURE, FISHERIES AND FORESTRY PORTFOLIOSUMMARY Summary of Appropriations (bold figures)—2023‑2024 Actual Available Appropriation (italic figures)—2023‑2024
Entity Payments to States, ACT, NT and local government New Administered Outcomes Non- operating Total
$'000 $'000 $'000 $'000
Department of Agriculture, Fisheries ‑ ‑ ‑ ‑
and Forestry ‑ ‑ 275,721 275,721
Total: Agriculture, Fisheries and ‑ ‑ ‑ ‑
Forestry ‑ ‑ 275,721 275,721

ATTORNEY‑GENERAL'S PORTFOLIOSUMMARY Summary of Appropriations (bold figures)—2023‑2024 Actual Available Appropriation (italic figures)—2023‑2024
Entity Payments to States, ACT, NT and local government New Administered Outcomes Non- operating Total
$'000 $'000 $'000 $'000
Attorney‑General's Department ‑ ‑ ‑ ‑
‑ ‑ 6,519 6,519
Administrative Appeals Tribunal ‑ ‑ ‑ ‑
‑ ‑ 3,135 3,135
Australian Criminal Intelligence ‑ ‑ ‑ ‑
Commission ‑ ‑ 4,230 4,230
Australian Federal Police ‑ ‑ ‑ ‑
‑ ‑ 65,535 65,535
Australian Transaction Reports and ‑ ‑ ‑ ‑
Analysis Centre ‑ ‑ 11,334 11,334
High Court of Australia ‑ ‑ ‑ ‑
‑ ‑ 850 850
National Anti‑Corruption Commission ‑ ‑ ‑ ‑
‑ ‑ 27,839 27,839
Office of the Australian Information ‑ ‑ ‑ ‑
Commissioner ‑ ‑ 1,000 1,000
Office of the Director of Public ‑ ‑ ‑ ‑
Prosecutions ‑ ‑ 2,200 2,200
Office of Parliamentary Counsel ‑ ‑ ‑ ‑
‑ ‑ 700 700
Office of the Special Investigator ‑ ‑ ‑ ‑
‑ ‑ 500 500
Total: Attorney‑General's ‑ ‑ ‑ ‑
‑ ‑ 123,842 123,842

CLIMATE CHANGE, ENERGY, THE ENVIRONMENT AND WATER PORTFOLIOSUMMARY Summary of Appropriations (bold figures)—2023‑2024 Actual Available Appropriation (italic figures)—2023‑2024
Entity Payments to States, ACT, NT and local government New Administered Outcomes Non- operating Total
$'000 $'000 $'000 $'000
Department of Climate Change, ‑ ‑ ‑ ‑
Energy, the Environment and Water ‑ ‑ 8,844,520 8,844,520
Payments to corporate entities:
Australian Institute of Marine Science ‑ ‑
29,246 29,246
Director of National Parks ‑ ‑
36,883 36,883
Murray‑Darling Basin Authority ‑ ‑
9,998 9,998
Sydney Harbour Federation Trust ‑ ‑
25,591 25,591
Bureau of Meteorology ‑ ‑ ‑ ‑
‑ ‑ 10,788 10,788
Great Barrier Reef Marine Park ‑ ‑ ‑ ‑
Authority ‑ ‑ 2,124 2,124
Total: Climate Change, Energy, the ‑ ‑ ‑ ‑
Environment and Water ‑ ‑ 8,959,150 8,959,150

DEFENCE PORTFOLIOSUMMARY Summary of Appropriations (bold figures)—2023‑2024 Actual Available Appropriation (italic figures)—2023‑2024
Entity Payments to States, ACT, NT and local government New Administered Outcomes Non- operating Total
$'000 $'000 $'000 $'000
Department of Defence ‑ ‑ 452,748 452,748
‑ ‑ 11,086,276 11,086,276
Australian Signals Directorate ‑ ‑ ‑ ‑
‑ ‑ 1,094,367 1,094,367
Australian Submarine Agency ‑ ‑ ‑ ‑
‑ ‑ 8,085 8,085
Department of Veterans' Affairs ‑ ‑ ‑ ‑
‑ ‑ 15,316 15,316
Payments to corporate entities:
Australian War Memorial ‑ ‑
7,645 7,645
Total: Defence ‑ ‑ 452,748 452,748
‑ ‑ 12,211,689 12,211,689

DEFENCE PORTFOLIOAdditional Appropriation (bold figures)—2023‑2024 Actual Available Appropriation (italic figures)—2023‑2024 Actual Available Appropriation (light figures)—2022‑2023
Payments to States, ACT, NT and local government New Administered Outcomes Total
$'000 $'000 $'000
DEPARTMENT OF DEFENCE
Non‑operating
Equity Injections 452,748
11,086,276
11,832,391
Total: Department of Defence ‑ ‑ 452,748

EDUCATION PORTFOLIOSUMMARY Summary of Appropriations (bold figures)—2023‑2024 Actual Available Appropriation (italic figures)—2023‑2024
Entity Payments to States, ACT, NT and local government New Administered Outcomes Non- operating Total
$'000 $'000 $'000 $'000
Department of Education ‑ ‑ ‑ ‑
152,204 ‑ 22,377 174,581
Total: Education ‑ ‑ ‑ ‑
152,204 ‑ 22,377 174,581

EMPLOYMENT AND WORKPLACE RELATIONS PORTFOLIOSUMMARY Summary of Appropriations (bold figures)—2023‑2024 Actual Available Appropriation (italic figures)—2023‑2024
Entity Payments to States, ACT, NT and local government New Administered Outcomes Non- operating Total
$'000 $'000 $'000 $'000
Department of Employment and ‑ ‑ 160 160
Workplace Relations ‑ ‑ 43,163 43,163
Australian Skills Quality Authority ‑ ‑ ‑ ‑
‑ ‑ 1,157 1,157
Total: Employment and Workplace ‑ ‑ 160 160
Relations ‑ ‑ 44,320 44,320

EMPLOYMENT AND WORKPLACE RELATIONS PORTFOLIOAdditional Appropriation (bold figures)—2023‑2024 Actual Available Appropriation (italic figures)—2023‑2024 Actual Available Appropriation (light figures)—2022‑2023
Payments to States, ACT, NT and local government New Administered Outcomes Total
$'000 $'000 $'000
DEPARTMENT OF EMPLOYMENT AND
WORKPLACE RELATIONS
Non‑operating
Equity Injections 160
43,163
43,502
Total: Department of Employment and ‑ ‑ 160
Workplace Relations

FINANCE PORTFOLIOSUMMARY Summary of Appropriations (bold figures)—2023‑2024 Actual Available Appropriation (italic figures)—2023‑2024
Entity Payments to States, ACT, NT and local government New Administered Outcomes Non- operating Total
$'000 $'000 $'000 $'000
Department of Finance ‑ ‑ ‑ ‑
‑ ‑ 997,068 997,068
Total: Finance ‑ ‑ ‑ ‑
‑ ‑ 997,068 997,068

FOREIGN AFFAIRS AND TRADE PORTFOLIOSUMMARY Summary of Appropriations (bold figures)—2023‑2024 Actual Available Appropriation (italic figures)—2023‑2024
Entity Payments to States, ACT, NT and local government New Administered Outcomes Non- operating Total
$'000 $'000 $'000 $'000
Department of Foreign Affairs and ‑ ‑ ‑ ‑
Trade ‑ ‑ 174,074 174,074
Australian Secret Intelligence Service ‑ ‑ ‑ ‑
‑ ‑ 11,632 11,632
Australian Trade and Investment ‑ ‑ ‑ ‑
Commission ‑ ‑ 1,583 1,583
Total: Foreign Affairs and Trade ‑ ‑ ‑ ‑
‑ ‑ 187,289 187,289

HEALTH AND AGED CARE PORTFOLIOSUMMARY Summary of Appropriations (bold figures)—2023‑2024 Actual Available Appropriation (italic figures)—2023‑2024
Entity Payments to States, ACT, NT and local government New Administered Outcomes Non- operating Total
$'000 $'000 $'000 $'000
Department of Health and Aged Care ‑ ‑ ‑ ‑
‑ ‑ 280,388 280,388
Payments to corporate entities:
Australian Digital Health Agency ‑ ‑
33,321 33,321
Australian Sports Commission ‑ ‑
2,882 2,882
Aged Care Quality and Safety ‑ ‑ ‑ ‑
Commission ‑ ‑ 850 850
Australian Radiation Protection and ‑ ‑ ‑ ‑
Nuclear Safety Agency ‑ ‑ 10,468 10,468
Office of the Inspector‑General of Aged ‑ ‑ ‑ ‑
Care ‑ ‑ 3,331 3,331
Total: Health and Aged Care ‑ ‑ ‑ ‑
‑ ‑ 331,240 331,240

HOME AFFAIRS PORTFOLIOSUMMARY Summary of Appropriations (bold figures)—2023‑2024 Actual Available Appropriation (italic figures)—2023‑2024
Entity Payments to States, ACT, NT and local government New Administered Outcomes Non- operating Total
$'000 $'000 $'000 $'000
Department of Home Affairs ‑ ‑ 550 550
‑ ‑ 97,427 97,427
Australian Security Intelligence ‑ ‑ ‑ ‑
Organisation ‑ ‑ 71,110 71,110
National Emergency Management ‑ ‑ ‑ ‑
Agency ‑ ‑ 60,538 60,538
Total: Home Affairs ‑ ‑ 550 550
‑ ‑ 229,075 229,075

HOME AFFAIRS PORTFOLIOAdditional Appropriation (bold figures)—2023‑2024 Actual Available Appropriation (italic figures)—2023‑2024 Actual Available Appropriation (light figures)—2022‑2023
Payments to States, ACT, NT and local government New Administered Outcomes Total
$'000 $'000 $'000
DEPARTMENT OF HOME AFFAIRS
Non‑operating
Equity Injections 550
95,344
16,512
Total: Department of Home Affairs ‑ ‑ 550

INDUSTRY, SCIENCE AND RESOURCES PORTFOLIOSUMMARY Summary of Appropriations (bold figures)—2023‑2024 Actual Available Appropriation (italic figures)—2023‑2024
Entity Payments to States, ACT, NT and local government New Administered Outcomes Non- operating Total
$'000 $'000 $'000 $'000
Department of Industry, Science and ‑ ‑ ‑ ‑
Resources ‑ ‑ 46,885 46,885
Payments to corporate entities:
Australian Nuclear Science and ‑ ‑
Technology Organisation 117,011 117,011
Commonwealth Scientific and ‑ ‑
Industrial Research Organisation 50,700 50,700
National Reconstruction Fund ‑ ‑
Corporation 14,200 14,200
Geoscience Australia ‑ ‑ ‑ ‑
‑ ‑ 13,063 13,063
Total: Industry, Science and ‑ ‑ ‑ ‑
Resources ‑ ‑ 241,859 241,859

INFRASTRUCTURE, TRANSPORT, REGIONAL DEVELOPMENT, COMMUNICATIONS AND THE ARTS PORTFOLIOSUMMARY Summary of Appropriations (bold figures)—2023‑2024 Actual Available Appropriation (italic figures)—2023‑2024
Entity Payments to States, ACT, NT and local government New Administered Outcomes Non- operating Total
$'000 $'000 $'000 $'000
Department of Infrastructure, ‑ ‑ ‑ ‑
Transport, Regional Development, 860,652 ‑ 3,489,071 4,349,723
Communications and the Arts
Payments to corporate entities:
Australian National Maritime Museum ‑ ‑
3,895 3,895
National Film and Sound Archive of ‑ ‑
Australia 9,813 9,813
National Gallery of Australia ‑ ‑
28,814 28,814
National Library of Australia ‑ ‑
18,343 18,343
National Museum of Australia ‑ ‑
10,838 10,838
National Portrait Gallery of Australia ‑ ‑
205 205
Old Parliament House ‑ ‑
6,572 6,572
Australian Communications and Media ‑ ‑ ‑ ‑
Authority ‑ ‑ 2,000 2,000
National Archives of Australia ‑ ‑ ‑ ‑
‑ ‑ 7,300 7,300
National Capital Authority ‑ ‑ ‑ ‑
‑ ‑ 99,215 99,215
Total: Infrastructure, Transport, ‑ ‑ ‑ ‑
Regional Development, 860,652 ‑ 3,676,066 4,536,718
Communications and the Arts

PRIME MINISTER AND CABINET PORTFOLIOSUMMARY Summary of Appropriations (bold figures)—2023‑2024 Actual Available Appropriation (italic figures)—2023‑2024
Entity Payments to States, ACT, NT and local government New Administered Outcomes Non- operating Total
$'000 $'000 $'000 $'000
Payments to corporate entities:
Aboriginal Hostels Limited ‑ ‑
3,048 3,048
Australian Institute of Aboriginal and ‑ ‑
Torres Strait Islander Studies 294 294
Indigenous Business Australia ‑ ‑
22,850 22,850
National Indigenous Australians ‑ ‑ ‑ ‑
Agency 3,635 ‑ 2,101 5,736
Office of National Intelligence ‑ ‑ ‑ ‑
‑ ‑ 6,024 6,024
Total: Prime Minister and Cabinet ‑ ‑ ‑ ‑
3,635 ‑ 34,317 37,952

SOCIAL SERVICES PORTFOLIOSUMMARY Summary of Appropriations (bold figures)—2023‑2024 Actual Available Appropriation (italic figures)—2023‑2024
Entity Payments to States, ACT, NT and local government New Administered Outcomes Non- operating Total
$'000 $'000 $'000 $'000
Services Australia ‑ ‑ ‑ ‑
‑ ‑ 100,541 100,541
Total: Social Services ‑ ‑ ‑ ‑
‑ ‑ 100,541 100,541

TREASURY PORTFOLIOSUMMARY Summary of Appropriations (bold figures)—2023‑2024 Actual Available Appropriation (italic figures)—2023‑2024
Entity Payments to States, ACT, NT and local government New Administered Outcomes Non- operating Total
$'000 $'000 $'000 $'000
Department of the Treasury ‑ ‑ ‑ ‑
‑ ‑ 825,000 825,000
Australian Bureau of Statistics ‑ ‑ ‑ ‑
‑ ‑ 7,732 7,732
Australian Competition and Consumer ‑ ‑ ‑ ‑
Commission ‑ ‑ 1,100 1,100
Australian Taxation Office ‑ ‑ ‑ ‑
‑ ‑ 22,348 22,348
Total: Treasury ‑ ‑ ‑ ‑
‑ ‑ 856,180 856,180

[Minister’s second reading speech made in—

House of Representatives on 14 May 2024

Senate on 24 June 2024]

(54/24)

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Appropriation Act (No. 6) 2023‑2024

No. 46, 2024

An Act to appropriate additional money out of the Consolidated Revenue Fund for certain expenditure, and for related purposes

Contents

Part 1—Preliminary

1 Short title

2 Commencement

3 Definitions

4 Portfolio statements

5 Notional transactions between entities that are part of the Commonwealth

Part 2—Appropriation items

6 Summary of appropriations

7 State, ACT, NT and local government items

8 Administered items

9 Administered assets and liabilities items

10 Other departmental items

11 Corporate entity items

Part 3—Miscellaneous

12 Crediting amounts to special accounts

13 Appropriation of the Consolidated Revenue Fund

14 Repeal of this Act

Schedule 1—Services for which money is appropriated

Appropriation Act (No. 6) 2023-2024

No. 46, 2024

An Act to appropriate additional money out of the Consolidated Revenue Fund for certain expenditure, and for related purposes

[Assented to 26 June 2024]

The Parliament of Australia enacts:

Part 1—Preliminary

1 Short title

This Act is the Appropriation Act (No. 6) 2023‑2024.

2 Commencement

Commencement information
Column 1 Column 2 Column 3
Provisions Commencement Date/Details

The Act relies on a specialized taxonomy of public finance terms, many of which are explicitly aligned with the Public Governance, Performance and Accountability Act 2013 (the PGPA Act). Under section 3, a clear distinction is drawn between corporate and non-corporate entities. Non-corporate entities (such as departments of state and the High Court) do not have a separate legal personality from the Commonwealth. Consequently, transactions between them are not legally real.

To resolve this, section 5 establishes the concept of "notional transactions," dictating that transactions between non-corporate entities must be treated as if they were real transactions. This legal fiction ensures that when one government department pays another for services, the paying department's appropriation is legally debited, maintaining dual-entry ledger integrity as expected under section 76 of the PGPA Act.

Another key concept is the "other departmental item," which section 3 defines as an amount set out in Schedule 1 opposite the heading "Equity Injections." Section 10 dictates that these items may only be applied for the "departmental expenditure" of the entity. Unlike "administered items" (which are managed by departments on behalf of the government for broader public programs), departmental items are intended for the direct, internal use of the agency, such as purchasing capital equipment, upgrading internal technology, or discharging agency-specific liabilities.

The Act also leverages the concept of "portfolio statements," which include the Portfolio Budget Statements, Portfolio Additional Estimates Statements, and Portfolio Supplementary Additional Estimates Statements. Under section 4, these statements are declared to be "relevant documents" for the purposes of section 15AB of the Acts Interpretation Act 1901. This elevates these extrinsic, policy-heavy documents to a position of statutory interpretive authority, meaning they can be used to legally define and limit the scope of what constitutes an authorised program or outcome under sections 7, 8, and 9 of the Act.

The primary and most direct subjects of this Act are three specific non-corporate Commonwealth entities: the Department of Defence, the Department of Home Affairs, and the Department of Employment and Workplace Relations. These departments gain the legal right to draw down substantial capital from the CRF, which would otherwise be a breach of section 83 of the Constitution.

Conversely, the Act exerts a diffuse economic effect on the Australian taxpayer, who bears the tax or debt burden of the 453,458,000 AUD cash drawdown. From an economic perspective, the benefits of this Act are highly concentrated while the costs are widely distributed. The principal beneficiaries are private entities operating within the defence procurement, homeland security, and public sector consulting markets. Because 99.84% of the appropriated funds are allocated to Defence as an equity injection, private defence contractors, weapons manufacturers, and logistical service providers are the ultimate recipients of this capital as it flows through procurement contracts.

Within the public service, the Act directly affects public sector accountants, chief financial officers, and compliance managers within the three funded departments, as well as officials in the Department of Finance. These individuals are tasked with ensuring that the drawdowns do not exceed the statutory caps set in section 6 and that all capital spending matches the strict definition of "departmental expenditure" under section 10. The Act also affects the Australian National Audit Office (ANAO) auditors, who must scrutinise the deployment of these late-stage equity injections against the backdrop of the portfolio statements declared under section 4.

While appropriation acts are primarily permissive spending authorisations, they establish a rigid web of statutory duties and rights that bind the executive branch. The primary right created by the Act is the authority granted to the three specified departments to apply their respective "other departmental items" for departmental expenditure (section 10). This right is absolute but strictly ring-fenced.

Under section 11(2), a powerful statutory duty is created regarding corporate entities: if an Act provides that a corporate entity must be paid amounts appropriated by Parliament for its purposes, and Schedule 1 contains an item for that entity, the entity must be paid the full amount specified. Although this specific Act does not allocate new bold figures to corporate entities (it only lists historical baselines in italics), this provision remains a critical structural guarantee, preventing the executive from withholding funds that Parliament has earmarked for independent corporate Commonwealth bodies or Commonwealth companies.

For non-corporate entities, section 5 imposes a duty to treat internal, notional transactions as real transactions. This means agencies cannot bypass formal accounting and debiting procedures simply because a transaction occurs within the single legal entity of the Commonwealth. Section 12 grants agencies the right to credit amounts to "special accounts" established under the PGPA Act, provided the purpose of the special account is covered by the appropriation item. This creates a corresponding duty on financial officers to ensure that any credited funds are applied strictly in accordance with both the special account's establishing rules and the parent appropriation's intent.

Finally, there is an implicit duty imposed on the Treasury and the Department of Finance to monitor the aggregate drawdown of the CRF to ensure it does not exceed the 453,458,000 AUD limit mandated by section 6, subject only to any administrative adjustments permitted under sections 74 and 75 of the PGPA Act.

Appropriation Act (No. 6) 2023-2024 does not contain any traditional civil penalties, criminal offences, administrative fines, or direct regulatory enforcement provisions. It is an internal machinery-of-government statute rather than a regulatory act targeting private conduct. However, enforcement of its provisions is critical and is secured through constitutional, administrative, and public service disciplinary frameworks.

The ultimate enforcement mechanism is section 83 of the Australian Constitution, which declares that no money shall be drawn from the Treasury of the Commonwealth except under an appropriation made by law. If a department draws down funds in excess of the amounts specified in Schedule 1 (for instance, if Defence attempts to draw down more than the authorised 452,748,000 AUD without an adjustment under the PGPA Act), or if a department spends its equity injection on unauthorized operational costs, this constitutes a constitutional violation.

Such breaches do not result in corporate fines, but they trigger severe administrative consequences. Under section 13, this Act operates in conjunction with the PGPA Act. Under the PGPA Act, officials who authorise or execute unlawful expenditures are subject to disciplinary action, including termination of employment, for breaching their statutory duties of care, diligence, and good faith. In severe cases involving the intentional misapplication of public funds, officials can face criminal prosecution under the Criminal Code Act 1995 for fraud or abuse of public office. Furthermore, the ANAO acts as the external enforcement auditor, conducting regular audits of compliance with appropriation acts and tabling public reports in Parliament, which exposes non-compliant departments to political and administrative damage.

The Act is not an isolated statute; it sits at the intersection of several core public law frameworks in Australia. First, it interacts directly with the Australian Constitution. It is the legislative instrument that satisfies the requirement in section 81 of the Constitution (which establishes the CRF) and section 83 (which forbids unauthorized drawdowns).

Second, its relationship with the PGPA Act is fundamental and explicit. Section 6 and section 13 reference the PGPA Act, acknowledging that the appropriated amounts are subject to administrative adjustments under sections 74 and 75 of that Act. Section 74 allows agencies to increase their appropriations by incorporating certain receipts, while section 75 allows for the transfer of functions and corresponding appropriations between entities. Additionally, section 12 allows the crediting of appropriated funds to special accounts established under the PGPA Act, while section 5 ensures that "notional transactions" are handled consistently with section 76 of the PGPA Act.

Third, the Act interacts with the Acts Interpretation Act 1901. Section 4 declares the portfolio statements to be "relevant documents" for the purposes of section 15AB of the Acts Interpretation Act. This allows courts, auditors, and departments to look to the PBS, PAES, and PSAES as authoritative extrinsic materials to resolve any ambiguity regarding the intended outcome or scope of an appropriation item (as also enabled by sections 7(2), 8(2), and 9(2)).

Fourth, the Act is part of a broader sequence of financial bills. Section 9(1) explicitly refers to Appropriation Acts (No. 1, 2, 3, 4, and 5) 2023-2024, allowing administered assets and liabilities items to be applied to achieve outcomes specified in those earlier acts, thereby maintaining statutory continuity across the entire federal budget cycle.

Because the Appropriation Act (No. 6) 2023-2024 is a single-purpose, time-limited financial statute, it does not possess a history of direct legislative amendments. It was introduced, debated, and passed in its original form, receiving Royal Assent on 26 June 2024.

However, the Act's statutory environment is designed to avoid the need for formal parliamentary amendment bills through delegated administrative powers. Under the PGPA Act, specifically sections 74 and 75, the executive branch is granted the power to adjust the practical value of the appropriations. While these administrative adjustments do not rewrite the text of Schedule 1 on the statute book, they alter the "Actual Available Appropriation" in real-time, effectively serving as an administrative amendment mechanism.

The most significant statutory milestone in the Act's lifecycle is its built-in repeal under section 14. The section states that the Act is repealed at the start of 1 July 2026. This self-executing repeal ensures that once the 2023-2024 financial year is concluded, and the standard two-year window for reporting, auditing, and ledger reconciliation has elapsed, the Act automatically disappears from the active statute book. This prevents the accumulation of spent appropriation statutes, keeping the Commonwealth's legislative database clean.

There is no litigation history associated with the Appropriation Act (No. 6) 2023-2024. This absence of judicial disputes is a standard feature of Australian public finance law rather than an anomaly.

Under Australian constitutional doctrine, appropriation acts are classified as parliamentary machinery that authorises the executive to spend public money. As established in landmark cases, these acts do not generally create justiciable private rights, duties, or civil causes of action that can be litigated by private citizens or commercial entities. A private contractor, for example, cannot sue a department in court to compel it to spend its equity injection under section 10, nor can a citizen sue to block an allocation based on political disagreement.

Furthermore, because the High Court of Australia is itself defined as a "non-corporate entity" under section 3, and is a potential recipient of funds under the broader appropriation framework, any direct litigation regarding the administration of these acts would require careful management of judicial conflict rules. While the High Court remains the ultimate arbiter of constitutional compliance under section 83, the lack of private standing and the highly technical, internal nature of these capital allocations mean that disputes are almost exclusively resolved through administrative reviews, Treasury interventions, or parliamentary committee oversight rather than courtroom litigation.

For compliance professionals, public sector advisors, and contractors, several significant "gotchas" are embedded in this Act. First, the "Four-Day Capital Crunch" is a major operational risk. The Act was assented to on 26 June 2024, but the appropriation is strictly bound to the 2023-2024 financial year ending 30 June 2024. This gives the Department of Defence, DEWR, and Home Affairs an incredibly narrow window of four calendar days to legally draw down or commit these funds. Any failure to properly align these transactions with the correct fiscal year boundaries can result in an unauthorized drawdown, violating section 83 of the Constitution.

Second, there is the "Equity Injection Ring-Fence." Because these funds are appropriated strictly under "other departmental items" (as equity injections under section 10), they cannot be redirected to cover operational deficits, employee salaries, or administrative expenses. If a department experiences an unexpected operational cash-flow crisis, it cannot legally raid these capital funds to balance its operational accounts. Doing so would violate section 10.

Third, there is the "Extrinsic Document Trap" under section 4. Because the Portfolio Budget Statements, Portfolio Additional Estimates Statements, and Portfolio Supplementary Additional Estimates Statements are declared relevant documents for statutory interpretation, any subtle shift in the terminology or program descriptions within those statements can restrict or expand the legal utility of the funds. Compliance officers must scrutinize these non-statutory documents with the same level of care as the Act itself, as they constitute the legal boundary of what is "intended" under sections 7, 8, and 9.

Fourth, the "Notional Transaction Illusion" under section 5 means that internal transfers between different non-corporate Commonwealth agencies carry the exact same statutory and audit risks as external contracts with private suppliers. A failure to document and reconcile an internal transfer with another agency can result in a material misstatement and a breach of the PGPA Act.

To ensure strict compliance with the Appropriation Act (No. 6) 2023-2024, government accountants, compliance officers, and external advisors must adopt a rigorous, systematic approach. First, immediately isolate the appropriated funds in the agency's ledger. The 452,748,000 AUD for Defence, the 160,000 AUD for DEWR, and the 550,000 AUD for Home Affairs must be recorded strictly as "other departmental items" (equity injections) and separated from ordinary operational accounts.

Second, perform immediate daily reconciliations of these funds against any administrative adjustments executed under sections 74 and 75 of the PGPA Act. This ensures that the agency is always operating within the legally adjusted "Actual Available Appropriation" cap.

Third, when planning the deployment of these capital funds, cross-reference the proposed expenditure against the specific objectives and program definitions detailed in the Portfolio Supplementary Additional Estimates Statements. This ensures that the expenditure remains within the legal boundaries of what was declared "intended" by Parliament, protecting the agency from audit findings of non-compliance.

Fourth, apply section 5 rigorously by treating every intra-Commonwealth transaction as a formal, arm's-length commercial transaction. Ensure that all transfer payments are fully documented, debited from the correct appropriation item, and backed by formal service level agreements.

Fifth, if any of these capital funds are to be directed to a special account under section 12, verify that the special account's establishing determination or Act explicitly permits the receipt of departmental equity injections, and that the account's defined purposes encompass the proposed capital works.

Finally, establish a dedicated audit file for this Act well ahead of the 1 July 2026 repeal date mandated by section 14. Ensure all transactional records, notional transfer debits, and capital asset registries are fully reconciled, signed off, and archived to facilitate smooth post-repeal ANAO audits without administrative disruption.

Appropriation Act (No. 6) 2023-2024

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