Each year the Appropriation Bills are prepared by Treasury and introduced into Parliament by the Treasurer alongside the Budget.

The objective of these Bills is to legally authorise the expenditure of money from the Consolidated Fund for the financial year to enable the provision of Government services. 

Once passed by both houses of Parliament and assented to by the Governor, the annual Appropriation Act takes effect from 1 July and lapses after a 12-month period (30 June).

The Annual Appropriation Act specifies the respective Lead Ministers who have the authority to spend and the appropriated sum for the purposes of the Principal departments of the public service and various special offices.

During the year agencies may require variations to their annual appropriation.

Variations to Annual Appropriation

The following mechanisms can be used to supplement existing appropriations listed in the Appropriation Act 2024. For a more detailed explanation of the mechanisms available, refer to the Government Sector Finance Act 2018 (GSF Act) and the Appropriation Act 2024.

GSF Act 2018 - S4.9 & S4.9A

Appropriations affected by transfer of functions between Ministers or GSF agencies

Section 4.9 applies to an appropriation to a Minister for a service, function or program if responsibility for the service, function or program is, during that period, transferred—

1. from one Minister to another Minister, or
2. from one GSF agency to another GSF agency.

The section clarifies that the appropriation assigned to the original Minister may be transferred to another through a determination made by the Treasurer in the same annual reporting period. 

Section 4.9A applies to a deemed appropriation taken to have been given to the lead Minister for a GSF agency if responsibility for a service, function or program is transferred—

1. from the Minister to another Minister, or
2. from the GSF agency to another GSF agency.

GSF Act 2018 - S4.11

Variations of annual appropriations for Commonwealth grants

Section 4.11 applies if the Commonwealth does any of the following in an annual reporting period:

1. provides for the making of a specific purpose payment not included in the Budget Papers of the State for that period,
2. provides for an increase in the amount of a specific purpose payment in excess of the amount included in the Budget Papers of the State for that period,
3. does not provide the whole of the amount of a specific purpose payment as included in the Budget Papers of the State for that period.

The Treasurer can issue a certificate that certifies that the matter has occurred and the amount involved. This will adjust the agency’s annual appropriation.

GSF Act 2018 - S4.13

Payments out of Consolidated Fund for exigencies of Government

Section 4.13 applies to exigencies of Government, being urgent and unforeseen expenditures.

The Treasurer may, with the approval of the Governor, determine that additional money is to be paid out of the Consolidated Fund if it is required to meet any exigencies of Government. The money must be no more than is necessary in the public interest.

Appropriation Act 2024 – S36(1)

Transfer of appropriation from another agency due to exigencies of government

The Treasurer may authorise the transfer of appropriations from one agency to another if:

1. The Treasurer is of the opinion that the exigencies of government require the payment, and
2. An equivalent sum is not paid out of the sum appropriated under the part for another purpose.

The Treasurer may authorise the payment either before or after it is made; however, it cannot be for the purpose of increasing salary or wages if the amount of the salary or wages is fixed by law.

Appropriation Act 2024 – S36(2)

Transfer of appropriation from the savings of another agency

The Treasurer may authorise the transfer of appropriations from one agency to another if:

1. the Treasurer is of the opinion that the sum appropriated for the purpose is insufficient to enable the purpose to be effectively and efficiently carried out, and
2. an equivalent sum is not paid out of the sum appropriated under the part for another purpose, and
3. the equivalent sum is identified as surplus to the other purpose by the Minister in relation to whom the other purpose is specified.

The Treasurer may authorise the payment either before or after it is made; however, it cannot be for the purpose of increasing salary or wages if the amount of the salary or wages is fixed by law.

Appropriation Act 2024 – S39 Special Appropriation

Delegation of special appropriation

The expenditure of money appropriated to the Treasurer by this Act is a delegable function of the Treasurer for the purposes of the Government Sector Finance Act 2018, section 9.8 if the appropriation is a special appropriation. The function may be delegated to another Minister or accountable authority. 

Section 39(1)(b) is available for expenditure related to salary and salary-related allowances for eligible workers, State contingencies, expenditure related to the Government’s election commitments or essential services.

The Treasurer may delegate the authority to spend money from the funds appropriated to the Treasurer by section 22.

Appropriation Act 2024 – S39 Contingencies to Integrity Agency

Delegation of appropriation for contingencies to integrity agency

The expenditure of money appropriated to the Treasurer by this Act is a delegable function of the Treasurer for the purposes of the Government Sector Finance Act 2018, section 9.8 if the appropriation is for contingencies in relation to integrity agencies. The function may be delegated to another Minister for the relevant integrity agency or accountable authority for the integrity agency. (Section 39(1)(a), (2)(a) Appropriation Act 2024)

The Treasurer may delegate the authority to spend money from the funds appropriated to the Treasurer by section 21.

Integrity agency means each of the following: (a) the Audit Office of New South Wales, (b) the Independent Commission Against Corruption, (c) the Law Enforcement Conduct Commission, (d) the New South Wales Electoral Commission, (e) the Ombudsman’s Office.
 

List of Principal Departments and Special Offices

The following Departments and Agencies receive a direct appropriation via the Lead Minister for the Portfolio. All other agencies receive authority to spend Consolidated Fund via one of the listed Principal Departments below or under other legislation.

Principal Departments	Special Offices and the Legislature
Cabinet Office	Independent Commission Against Corruption
Department of Climate Change, Energy, the Environment and Water	Independent Pricing and Regulatory Tribunal
Department of Communities and Justice	Judicial Commission of New South Wales
Department of Customer Service	Law Enforcement Conduct Commission
Department of Education	New South Wales Electoral Commission
Ministry of Health	Office of the Children's Guardian
Department of Creative Industries, Tourism, Hospitality and Sport	Office of the Director of Public Prosecutions
Department of Planning, Housing and Infrastructure	Ombudsman's Office
Premier's Department	Legislature
Department of Primary Industries and Regional Development
Department of Transport
Treasury