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Appropriation Bill (No. 2) 2023-2024

Current status

This bill became law on Jun 28th, 2023.

Policy area

Budget, tax & economy

What does this bill do?

Approves $28.182598 billion in federal spending for 2023-24 on items covered by this bill, mainly for government activities that are not ordinary annual running costs.

Why was it introduced?

The Constitution requires spending on government activities that are not ordinary annual running costs to be set out in a separate bill, creating a funding gap unless Parliament approves it. This bill provides that money for 2023-24 and lets the government make related payments, including extra urgent spending if existing appropriations are missing or too low.

Broader context

Because the Constitution requires spending on items that are not ordinary annual services to go through a separate appropriation law, the Albanese government needed a second 2023-24 appropriations bill to release budgeted money for measures such as Defence Strategic ReviewA government review that set priorities for defence funding and implementation work mentioned in the bill context. implementation and Rewiring the NationA federal program for electricity grid upgrades that is cited as one of the funding measures covered by the bill.. Debate around the bill unfolded as MPs described Australians facing cost-of-living and housing pressure, and Parliament then passed the measure so about $28 billion could be spent, including payments to states and councils and a contingency reserve for urgent gaps.

Key criticism

Critics said the bill would lock in a weak budget that could add to inflation while sending money to bureaucracy or the wrong priorities instead of frontline services, infrastructure and regional needs. That case was pressed mainly by Coalition speakers, while some crossbench support still came with narrower complaints that the budget lacked long-term reform and stronger action in key areas.

Who supported it?

Stephen Jones MP introduced this bill. It passed on the voices.

Introduced in House 09 May 2023
Passed House 15 June 2023
Passed Senate 22 June 2023
Became law 28 June 2023

Did it become law?

Yes

Became law 28 June 2023

Final passage

Passed without a counted vote

Members called out ‘aye’ or ‘no’ — no individual votes were recorded.

Passage speed

50 days

From introduction to the latest recorded parliamentary step

Official record

View on APH

Parliament of Australia bill page

Meaning

What does this bill do?

  1. Approves $28.182598 billion in federal spending for 2023-24 on items covered by this bill, mainly for government activities that are not ordinary annual running costs.

  2. Allows federal money in this bill to be paid to states, territories and local councils when the payment helps deliver the outcome listed for a Commonwealth department.

  3. Lets the Finance Minister add extra spending during the year for urgent needs that were missed or underfunded, with up to $600 million available for any purpose.

  4. Sets annual limits of $5 billion for general federal support to states and $35 billion for national partnership paymentsTied grants from the Commonwealth to states, territories or local government for specific agreed purposes. in 2023-24.

  5. Raises those payment limits when GSTThe national consumption tax; here it matters because some GST-related amounts are excluded from the spending caps and added on separately.-related amounts apply, so the stated caps do not include qualifying GSTThe national consumption tax; here it matters because some GST-related amounts are excluded from the spending caps and added on separately. costs.

Show source excerpts
  1. The total of the items specified in Schedule 2 is $28,182,598,000.
    Appropriation Bill (No. 2) 2023-2024 as-passed bill text
  2. (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.
    Appropriation Bill (No. 2) 2023-2024 as-passed bill text
  3. Subclause 12(3) provides that the total amount that can be determined under the AFM provisions in the Bill, once enacted, is $600 million. This amount can be allocated for any purpose.
    Appropriation Bill (No. 2) 2023-2024 explanatory memorandum
  4. This bill also sets the debit limits for payments under the Federal Financial Relations Act 2009 that apply in 2023-24. They are as follows: $5 billion for general purpose financial assistance and $35 billion for national partnership payments.
    Second reading speech
  5. Some payments from the COAG Reform Fund may include a GST qualifying amount and the relevant debit limit is adjusted accordingly. The appropriation itself is not affected by clause 14, because it is increased by the operation of section 74A of the PGPA Act. Essentially, clause 14 clarifies that the amounts specified for the debit limits for 2023‑24 are exclusive of any GST qualifying amounts that may arise in respect of acquisitions made in relation to that limit.
    Appropriation Bill (No. 2) 2023-2024 explanatory memorandum

Context

Broader context for this bill

Because the Constitution requires spending on items that are not ordinary annual services to go through a separate appropriation law, the Albanese government needed a second 2023-24 appropriations bill to release budgeted money for measures such as Defence Strategic ReviewA government review that set priorities for defence funding and implementation work mentioned in the bill context. implementation and Rewiring the NationA federal program for electricity grid upgrades that is cited as one of the funding measures covered by the bill.. Debate around the bill unfolded as MPs described Australians facing cost-of-living and housing pressure, and Parliament then passed the measure so about $28 billion could be spent, including payments to states and councils and a contingency reserve for urgent gaps.

  1. 09 May 2023

    Budget decisions were packaged into a separate non-annual services bill

    The second reading speech said the bill would appropriate about $28 billion from the 2023-24 budget for spending that had to be authorised outside the ordinary annual services bill, including major funding for Defence and electricity grid upgrades.

    Hansard second reading speech ↗
  2. 25 May 2023

    Cost-of-living pressure shaped debate over the budget spending

    During debate, MPs said Australians were looking for support through difficult economic circumstances, including rising bills and housing stress, giving political urgency to the appropriations package.

    Hansard second reading speech ↗
  3. 22 June 2023

    Parliament passes the bill

    Both houses passed the bill in the same form, completing approval for the 2023-24 non-annual services spending package.

    Parliamentary timeline ↗
  4. 28 June 2023

    Royal AssentThe final step that turns a passed bill into an Act of Parliament. turns the spending package into law

    Royal AssentThe final step that turns a passed bill into an Act of Parliament. made the bill an Act, allowing the authorised funds to be drawn and enabling related payments to states, territories, local government and urgent supplementary allocations.

    Parliamentary timeline ↗

Legislative route

How did it move through Parliament?

House Senate
Introduced 09 May 2023

The bill was formally presented to the chamber and read a first time, which starts its parliamentary journey.

Introduced and read a first time

Second reading opened 09 May 2023

A minister or sponsoring member moved the second reading, opening the main debate on the bill's purpose and principles.

Second reading moved

Sent to Federation Chamber for debate 22 May 2023

The bill reached this recorded parliamentary step.

Referred to Federation Chamber

Second reading debate 24 May 2023

The bill reached this recorded parliamentary step.

Second reading debate 25 May 2023

The bill reached this recorded parliamentary step.

Second reading debate 30 May 2023

The bill reached this recorded parliamentary step.

Second reading debate 31 May 2023

The bill reached this recorded parliamentary step.

Second reading debate 01 June 2023

The bill reached this recorded parliamentary step.

House second reading agreed 15 June 2023

The chamber agreed to the bill at second reading, meaning it accepted the bill in principle and allowed it to continue.

Second reading agreed to

Returned from Federation Chamber 15 June 2023

The bill reached this recorded parliamentary step.

Reported from Federation Chamber

House third reading agreed 15 June 2023

The chamber agreed to the bill at third reading, which completed passage through that chamber.

Third reading agreed to

Introduced 16 June 2023

The bill was formally presented to the chamber and read a first time, which starts its parliamentary journey.

Introduced and read a first time

Second reading opened 16 June 2023

A minister or sponsoring member moved the second reading, opening the main debate on the bill's purpose and principles.

Second reading moved

Senate second reading agreed 22 June 2023

The chamber agreed to the bill at second reading, meaning it accepted the bill in principle and allowed it to continue.

Second reading agreed to

Senate third reading agreed 22 June 2023

The chamber agreed to the bill at third reading, which completed passage through that chamber.

Third reading agreed to

Passed both houses 22 June 2023

Both houses passed the bill in the same form, completing parliamentary passage.

Finally passed both Houses

Assent 28 June 2023

The Governor-General gave Royal AssentThe final step that turns a passed bill into an Act of Parliament., turning the bill into an Act.

Key criticism

The main case against this bill

Critics said the bill would lock in a weak budget that could add to inflation while sending money to bureaucracy or the wrong priorities instead of frontline services, infrastructure and regional needs. That case was pressed mainly by Coalition speakers, while some crossbench support still came with narrower complaints that the budget lacked long-term reform and stronger action in key areas.

Opposition was real but not broad across all non-government speakers.

Spending in the wrong places

Coalition critics argued the bill funds a weak budget that risks worsening inflation and shifts money into bureaucracy rather than frontline delivery and practical investment in services and industry.

Raised by Coalition speakers, especially Paul Fletcher Source ↗

Regional and infrastructure needs being missed

Opponents warned the bill leaves regional Australia short by cutting, delaying or creating uncertainty around infrastructure, health, aged care and veterans' services that regional communities depend on.

Raised by Barnaby Joyce and Mark Coulton Source ↗

Not enough long-term reform

Some supportive crossbenchers said the bill's budget measures were too modest and failed to tackle deeper structural problems, including housing, poverty, mental health, climate policy and long-term economic management.

Raised by Independent Mp Kylea Tink Source ↗

Further sources

parlinfo.aph.gov.au ↗ parlinfo.aph.gov.au ↗

Votes

Recorded votes

How the bill itself passed

The bill passed both chambers on the voices, so there is no list of individual Aye and No votes for final passage.

Passed

House passed the bill

House agreed to the bill's third reading on the voices, so there is no list of individual Aye and No votes for final passage in that chamber.

15 June 2023

Passed on the voices

In a voice vote, members call out Aye or No and the presiding officer judges which side has it. Individual names are only recorded if a formal division is called.

Passed

Senate passed the bill

Senate agreed to the bill's third reading on the voices, so there is no list of individual Aye and No votes for final passage in that chamber.

22 June 2023

Passed on the voices

In a voice vote, members call out Aye or No and the presiding officer judges which side has it. Individual names are only recorded if a formal division is called.

Parliamentary debate

Who spoke, and what they said

Start here — lead voices

Sponsor speech Supports

Stephen Jones

Australian Labor Party • MP 09 May 2023

Stephen Jones supports the appropriation bill and commends it to the House, saying it funds major budget decisions including defence, climate and energy, and infrastructure spending.

Read in Hansard ↗
Lead opposing voice Opposes

Paul Fletcher

Liberal Party • MP 31 May 2023

Paul Fletcher says the coalition opposes this appropriation bill because it is a weak budget that worsens inflation and fails to fund key priorities properly across arts, science, space, digital economy and government services.

Read in Hansard ↗
Lead supporting voice Supports

Kylea Tink

Independent • MP 31 May 2023

Kylea Tink supports the bill overall, but says it is underwhelming and falls short on structural reform, long-term economic management and stronger action on housing, poverty, mental health and climate change.

Read in Hansard ↗
Lead voice Supports

Dan Repacholi

Australian Labor Party • MP 31 May 2023

Repacholi supports the appropriation bill as part of the budget package, saying it delivers real relief and better outcomes for workers and families in his electorate.

Read in Hansard ↗

All speeches by bloc

Labor

6 speakers · 6 support

  1. Dan Repacholi ★ Repacholi supports the appropriation bill as part of the budget package, saying it delivers real relief and better outcomes for workers and families in his electorate.
    “Budget week is just past, and what a great budget it was for those in my electorate in the Hunter Valley. We are delivering serious reforms and delivering real relief to those who need it.”

    Australian Labor Party • MP • 31 May 2023

    Read the full speech in Hansard ↗
  2. Sharon Claydon Claydon supports the appropriation bill because she says the budget is a responsible, practical package that delivers targeted relief, especially in health, income support, childcare and cost-of-living help.
    “This 2023-24 budget is responsible and practical and aimed very squarely at providing targeted relief to those most vulnerable Australians, whilst also easing pressure on families.”

    Australian Labor Party • MP • 31 May 2023

    Read the full speech in Hansard ↗
  3. Kate Thwaites Thwaites supports the bill as part of the budget package, saying it delivers cost-of-living relief while backing Medicare, cheaper medicines, energy upgrades and environmental spending.
    “It is important to be here speaking on the Appropriation Bill (No. 1) 2023-2024, the Appropriation Bill (No. 2) 2023-2024 and the Appropriation (Parliamentary Departments) Bill (No. 1) 2023-2024 at a time when our government knows that Australians are looking to us for support.”

    Australian Labor Party • MP • 25 May 2023

    Read the full speech in Hansard ↗
  4. Anne Stanley Stanley strongly supports the bill, saying it is a responsible Labor budget that delivers cost-of-living relief, strengthens Medicare and supports households, small business and training.
    “I commend the budget and appropriation bills to the House.”

    Australian Labor Party • MP • 31 May 2023

    Read the full speech in Hansard ↗
  5. Jenny McAllister McAllister supports the bill and says it gives effect to the 2023-24 Budget, funding defence, climate and infrastructure priorities and resetting the Advance to the Finance MinisterA reserve pot of money the Finance Minister can release during the year for urgent spending that was missed or underfunded. to conventional levels.
    “Appropriation Bill 2 seeks approval for appropriations from the Consolidated Revenue Fund of approximately $28 billion, incorporating decisions from the 2023-24 Budget. I now outline the most significant items provided for in this Bill.”

    Australian Labor Party • Senator • 16 June 2023

    Read the full speech in Hansard ↗
  6. Stephen Jones ★ Stephen Jones supports the appropriation bill and commends it to the House, saying it funds major budget decisions including defence, climate and energy, and infrastructure spending.
    “Full details of the proposed expenditure are set out in the schedules to the bill, the explanatory memorandum and the portfolio budget statements tabled in the parliament today. I commend the bill to this chamber.”

    Australian Labor Party • MP • 09 May 2023

    Read the full speech in Hansard ↗

Coalition

3 speakers · 2 oppose · 1 unclear

  1. Paul Fletcher ★ Paul Fletcher says the coalition opposes this appropriation bill because it is a weak budget that worsens inflation and fails to fund key priorities properly across arts, science, space, digital economy and government services.
    “This is a budget which fails to meet the needs of Australians and Australia in macroeconomic terms, in failing to address the inflation challenge we face—indeed, on the contrary, making the inflation challenge worse. It also fails to meet the needs of the nation across individual portfolios, including those for which I have responsibility.”

    Liberal Party • MP • 31 May 2023

    Read the full speech in Hansard ↗
  2. Barnaby Joyce Joyce opposes the bill because he says the budget fails to back the infrastructure and veteran services that regional Australia needs, and instead cuts or delays projects that support economic growth.
    “To have to have compassion, you've got to have the economy able to earn the money to do it. What this budget failed to do—using New England as an example—is invest in that crucial infrastructure to drive the economy forward and to keep the money coming in so you can pay for Medicare.”

    National Party • MP • 01 June 2023

    Read the full speech in Hansard ↗
  3. Mark Coulton Coulton criticises the appropriation bill for ignoring regional Australia and creating uncertainty around infrastructure, health and aged care, but says he is willing to work with the government on regional funding.
    “I am happy to work with the government. Minister King has asked me to go on a bipartisan committee to help with regional funding, and I will do that. I think it's important that we try and work together as best we can. But I've got to say I can't hide my disappointment in the way that regional Australia has been treated by this budget.”

    National Party • MP • 31 May 2023

    Read the full speech in Hansard ↗

Minor parties and independents

1 speaker · 2 contributions · 1 support

  1. Kylea Tink ★ 2 contributions Kylea Tink supports the bill overall, but says it is underwhelming and falls short on structural reform, long-term economic management and stronger action on housing, poverty, mental health and climate change.

    Hansard records 2 separate contributions by Kylea Tink on this bill. They are grouped here so the speaker is listed once.

    Second reading speech Independent • MP • 30 May 2023

    Tink supports the appropriation bill, but says the budget is short on long-term structural reform and clear vision. She welcomes some health and cost-of-living measures, while criticising the lack of deeper investment in areas like mental health and warning that some reforms need better consultation.

    “At first glance, this budget would indicate the government recognises these challenges and has tried to respond appropriately. I am grateful that, where my community and I advocated for reform, we were successful, with single parents and families with children under 16 now able to access additional support, and others benefiting from cheaper energy bills as we push to electrification. But, on deeper reflection, unfortunately there is little in this budget to take either heart or inspiration from. As a country, we need long-term structural reform which focuses on driving activity, productivity and managing cost inputs. And we need a clear vision. Neither of these were evident in the last budget.”
    Read this contribution in Hansard ↗

    Second reading speech Independent • MP • 31 May 2023

    Kylea Tink supports the bill overall, but says it is underwhelming and falls short on structural reform, long-term economic management and stronger action on housing, poverty, mental health and climate change.

    “While this budget has set out in the right direction, I believe structural reform is needed for long-term prosperity. This budget is underwhelming and should be much more ambitious.”
    Read this contribution in Hansard ↗

Record

Full record

Full chat