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Appropriation Bill (No. 2) 2025-2026

High-Level Summary

The Appropriation Bill (No. 2) 2025-2026 provides the remaining seven-twelfths of funding for the 2025-26 financial year, covering services that are not the ordinary annual services of government, and incorporates pre-election budget decisions, updated fiscal estimates and machinery-of-government changes. It reintroduces lapsed appropriations from the 47th Parliament with adjustments for departmental restructures and new program funding.

Earlier Supply Acts delivered funding for the first five months of 2025-26; this Bill supplies the funds for the final seven months and for specific new measures such as support for the first Hindu school in Australia and targeted climate and social programs.

Summary

The Appropriation Bill (No. 2) 2025-2026 authorises withdrawals from the Consolidated Revenue Fund for non-ordinary annual services of the Australian Government for the final seven months of 2025-26. It reintroduces the lapsed 2025-26 Appropriation Bills with the following key features:

  • Scope: Part 1 defines terms and confirms that Portfolio Budget Statements guide interpretation; Part 2 sets out appropriations for State, Territory and local government payments, administered outcomes, administered assets and liabilities, departmental equity injections, and corporate entity funding; Part 3 establishes an Advance to the Finance Minister (AFM) cap of $600 million for urgent expenditures; Part 4 provides for credits to special accounts, ministerial determinations for payments under section 96 of the Constitution, and repeal on 1 July 2028.
  • Budget changes: Reflects 2025 Pre-election Economic and Fiscal Outlook adjustments (+$2.441 billion) including $50 million for cheaper home batteries, $2.391 billion for Disability Employment Services, and $3.4 million for the construction of the first Hindu school in Australia.
  • Machinery-of-government: Updates department names and transfers entities (e.g., Health renamed Health, Disability and Ageing; Sport functions moved to Infrastructure, Transport, Regional Development, Communications, Sport and the Arts) in line with the Administrative Arrangements Order of May and July 2025.
  • New entities: Direct appropriations to the Defence and Veterans’ Services Commission and the Australian Naval Nuclear Power Safety Regulator.
Argument For
Normative Bases
  1. Legal Principle [Australian Constitution sections 53–54]
  2. Hobbesianism
  3. Pro-Democracy

Under the Constitution, no money can be withdrawn from the federal coffers without parliamentary appropriation, and separate bills for ordinary and non-ordinary services ensure clarity of purpose and democratic oversight. This Bill fulfils that essential function, guaranteeing the government can continue to deliver core public services for the remainder of 2025-26.

By reintroducing lapsed legislation with updated estimates and incorporating new election commitments—such as funding for Disability Employment Services and the first Hindu school—the Bill translates elected commitments into action. The Advance to the Finance Minister (AFM) mechanism further strengthens the capacity of the state to respond rapidly to unforeseen events, maintaining institutional resilience and stability, which is the bedrock of effective governance.

In sum, supporting this Bill upholds the rule of law, respects the separation of powers by ensuring parliamentary control of public funds, and enables continuity of services that citizens rely upon daily [Judgment].

Argument Against
Normative Bases
  1. Value-Neutral / Epistemic Objection
  2. Legal Principle [Australian Constitution section 53]

While appropriations are constitutionally required, bundling dozens of programs into omnibus supply bills can obscure individual line items and reduce parliamentary scrutiny. Members of Parliament and the public may struggle to examine each funding allocation in detail, weakening the accountability that is fundamental to democratic governance.

The AFM provision, while designed for urgent needs, is exempt from disallowance and broad in scope, granting the Finance Minister significant discretion to reallocate funds without further parliamentary approval. This undermines the House’s power of the purse and risks opaque budgetary decision-making, as adjustments made under section 51 of the PGPA Act escape standard legislative oversight [Judgment].

In the absence of finer-grained debate on individual appropriations and clear reporting on AFM allocations, the Bill risks perpetuating a lack of transparency in federal expenditure. Parliament should demand more targeted appropriation vehicles or enhanced reporting to preserve its constitutional role in controlling public finances.

Key Links:
Official URL
Explanatory Memo URL
Latest Bill URL
Date:

2025-07-30

Chamber:

House of Representatives

Status:

Before House of Representatives

Sponsor:

Unspecified

Portfolio:

Finance

Categories:

Democratic Institutions, Fiscal Package (Stimulus / Debt Relief)

Timeline:
30/07/2025

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