6. INCREASE IN APPROPRIATION ITEMS

2.1.2. ‘eligible receipts’ means the receipts set out in clauses 5.1 and 5.2 of this agreement.

3. PURPOSE

3.1. This net appropriation agreement records the extent to which the amount specified in items in an annual appropriation Act may be taken to be increased by reference to eligible receipts of the agency.

Note 1: In most cases an item in the annual appropriation Act will be taken to be increased by the whole amount received by the agency. However, in some cases, the item in the annual appropriation Act will only be taken to be increased by a proportion of the whole amount received by the agency - see clause 6.1.

Note 2: Where a receipt relates to more than one appropriation item in an annual appropriation Act, each relevant item will generally be increased by the portion of the whole amount that applies to the particular item – see clause 6.2.

4. DURATION OF THE AGREEMENT

4.1. This agreement replaces any previous net appropriation agreement between the Finance Minister and the responsible Minister in respect of any of the appropriation items identified in this agreement. 4.2. This agreement continues until a new net appropriation agreement covering an appropriation item for the agency (or an outcome of the agency) commences.

Note 1: Any future net appropriation agreement for the agency should be drafted to cover all appropriation items (including all administered items) for which the agency requires a net appropriation agreement.

Note 2: Under s.31(4) of the FMA Act, the Finance Minister may at any time cancel or vary this agreement, without the consent of the other party.

5. NATURE OF ELIGIBLE RECEIPTS

5.1. The following receipts are eligible receipts for the purposes of clause 6.1 of this agreement: Departmental

5.1.1. Receipts from the sale, leasing, hiring out of, or other dealing with goods.

5.1.2. Receipts from the provision of staff and other services.

5.1.3. Receipts from a person (whether employed, appointed, or performing services for, the Commonwealth) as payment for any associated benefit provided (whether to that person or another person).

5.1.4. Receipts from the sale of minor assets that are departmental in nature such as furniture and fittings.

5.1.5. Receipts from the transfer of annual and long-service leave entitlements between agencies.

5.1.6. Subsidy and grant moneys received as a result of participation in employment subsidy schemes or programs.

5.1.7. Court awarded costs to the extent to which they reflect legal costs incurred in litigating the matter.

5.1.8. Amounts received from the Australian Taxation Office as interest on a late repayment.

5.1.9. Sponsorships, grants, subsidies and contributions received to fund departmental activities.

5.1.10. Donations received, expressed to be for the performance of specific departmental activities.

5.1.11. Financial Incentives to enter into leasing arrangements.

5.1.12. Amounts received in relation to the ADF Reserves Employer Support Payment Scheme.

5.1.13. Receipts from the lease or sub-leasing of real property.

5.1.14. Receipts from Comcare (“the Comcare amount”) that correspond to the amount of Comcare receipts that are not otherwise able to be recredited under section 30 of the FMA act.

5.1.15. Receipts from the sale of departmental housing.

5.2. The following receipts are eligible receipts for the purposes of clauses 6.2, 6.3, 6.4. 6.5 and 6.6 of this agreement: Administered 5.2.1. Subsidy, contract and grant moneys received as a result of contributions from other entities as co‑contributions for joint initiatives. 5.3. For the avoidance of doubt, receipts under items 5.1 and 5.2 do not include:

5.3.1. Court awarded fines and damages, etc (other than to the extent covered by clause 5.1.7); and

5.3.2. Receipts from taxes, levies or specific cost recovered activities where the receipts are raised under legislation and where the activities are budget funded.

Note: User charging activities should comply with the Government’s cost recovery policy as set out in the Commonwealth Cost Recovery Guidelines for Information and Regulatory Agencies.

6. INCREASE IN APPROPRIATION ITEMS

6.1. Subject to the net appropriation provisions of the annual appropriation Acts, the Departmental item for the agency is taken to be increased by the following amounts:

6.1.1. For the receipts listed in 5.1, 100% of the receipts.

6.2. Subject to the net appropriation provisions of the annual appropriation Acts, the Administered item for Outcome 2 of the agency is taken to be increased by the following amounts: 6.2.1. The amount of receipts listed in 5.2 that relate to Outcome 2 of the agency. 6.3. Subject to the net appropriation provisions of the annual appropriation Acts, the Administered item for Outcome 3 of the agency is taken to be increased by the following amounts: 6.3.1. The amount of receipts listed in 5.2 that relate to Outcome 3 of the agency. 6.4. Subject to the net appropriation provisions of the annual appropriation Acts, the Administered item for Outcome 4 of the agency is taken to be increased by the following amounts: 6.4.1. The amount of receipts listed in 5.2 that relate to Outcome 4 of the agency. 6.5. Subject to the net appropriation provisions of the annual appropriation Acts, the Administered item for Outcome 5 of the agency is taken to be increased by the following amounts: 6.5.1. The amount of receipts listed in 5.2 that relate to Outcome 5 of the agency. 6.6. Subject to the net appropriation provisions of the annual appropriation Acts, the Administered item for Outcome 6 of the agency is taken to be increased by the following amounts: 6.6.1. The amount of receipts listed in 5.2 that relate to Outcome 6 of the agency.

Notes

1. In order to comply with the appropriation requirements of sections 81 and 83 of the Constitution and with sections 19 and 48 of the FMA Act, agencies must keep proper accounts and records of all appropriations to ensure that they do not spend above their appropriation limits.
2. The agency must be able to identify, quantify and, if requested, produce information to show the amounts attributable to net appropriation receipts. This information should be available within the agency’s Financial Management Information System or in other supporting systems or documentation.
3. The agency must report the net appropriations referred to above, as required, in the relevant Budget documents, agency financial statements and the Consolidated Financial Statements.
4. It is the agency’s responsibility to be aware of any changes to reporting requirements which affect net appropriation reporting requirements.
5. The Efficiency Dividend will not apply to any amounts deemed to be appropriated under this agreement.