Extra spending could worsen inflation
Critics argued the bill adds to government spending at the wrong time, which could make inflation worse and leave interest rates higher for longer, hurting mortgage holders and households.
Appropriation Bill (No. 6) 2023-2024
Current status
This bill became law on Jun 26th, 2024.
Policy area
Budget, tax & economy
What does this bill do?
Appropriates $453.458 million in extra federal funding for 2023-24 so the Australian Government can spend it on the purposes listed in Schedule 1.
Why was it introduced?
Government decisions made after the 2023-24 Mid-Year Economic and Fiscal OutlookA budget update used here as the point after which the government made extra spending decisions that needed fresh appropriation. left extra non-operating funding needs, mainly for Defence capability funding. This bill provides $453.458 million in additional appropriations for the approved Schedule 1 purposes, almost all of it as Defence equity injectionFunding for assets or liabilities, such as buying equipment, building facilities or paying off past obligations. funding.
Broader context
The 2023-24 budget settings were later overtaken by extra spending decisions, and the 2024 National Defence StrategyThe defence plan used here to justify directing most of the extra money to Defence capabilities. sharpened the need to direct more money into Defence capabilities through a reclassification from operating to capital funding. Appropriation BillA bill that gives the government legal authority to spend public money for specific purposes named in the schedules. (No. 6) responded by providing $453.458 million in supplementary appropriations for non-ordinary annual servicesThe routine government spending that must go in a different appropriation bill from the extra spending in this one., almost all for Defence, and after Parliament passed it in June 2024 the Act gave the government legal authority to make those payments in the 2023-24 year.
Key criticism
The main criticism was that this extra spending would add to inflation, keep interest rates higher for longer, and direct more money into bureaucracy rather than urgent household or frontline priorities. That case was raised by Coalition senators in Senate debate, while other speakers supported the bill and no broader cross-party implementation critique is clearly recorded.
Who supported it?
Stephen Jones MP introduced this bill. It passed on the voices.
Introduced in House 14 May 2024
Passed House 29 May 2024
Passed Senate 25 June 2024
Became law 26 June 2024
Did it become law?
Yes
Became law 26 June 2024
Final passage
Passed without a counted vote
2 recorded amendment or procedural votes were found, but no counted vote on the bill itself was recorded.
Passage speed
43 days
From introduction to the latest recorded parliamentary step
Meaning
What does this bill do?
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Appropriates $453.458 million in extra federal funding for 2023-24 so the Australian Government can spend it on the purposes listed in Schedule 1.
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Sends almost all of this extra money to the Department of Defence as capital funding for defence capabilities prioritised in the 2024 National Defence StrategyThe defence plan used here to justify directing most of the extra money to Defence capabilities..
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Schedule 1 puts the $453.458 million total in the non-operating column, not in the payments-to-states or new-administered-outcomes columns.
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The Act still contains the standard machinery for administered items, but this bill’s actual Schedule 1 funding is for non-operating amounts.
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Keeps equity injectionFunding for assets or liabilities, such as buying equipment, building facilities or paying off past obligations. funding available until it is spent or the Act is repealed, so agencies can finish asset purchases or liability payments after the budget year if needed.
Show source excerpts
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The total of the items specified in Schedule 1 is $453,458,000.
Appropriation Act (No. 6) 2023-2024 final Act text -
This bill seeks approval for appropriations from the Consolidated Revenue Fund of $453.5 million for the 2023-24 financial year. These appropriations will support the following significant items. The Department of Defence will receive close to $453 million, reflecting a reclassification from operating to capital, to support the delivery of capabilities prioritised in the 2024 National Defence Strategy. Full details of the proposed expenditure are set out in the schedule to the bill, the explanatory memorandum and the portfolio supplementary additional estimates. I commend this bill to the chamber.
Minister's second reading speech -
Total: Bill 6 ‑ ‑ 453,458 453,458
Appropriation Act (No. 6) 2023-2024 final Act text -
Subclause 8(1) provides for the appropriation of new administered outcome amounts to be applied by a non-corporate entity for the purpose of contributing to the outcome for a non-corporate entity.
Appropriation Bill (No. 6) 2023-2024 explanatory memorandum -
Other departmental items are not expressed in terms of a particular financial year. For example, Equity Injection appropriations provide funding to meet the cost expected to be incurred in the Budget year to acquire a new asset, however, for a number of reasons, some part of the appropriation might not be required until a later financial year. Other departmental items are available until they are spent, or the Act through which they were appropriated is repealed. Annual Appropriation Acts have a lifespan of up to three years after which they automatically repeal.
Appropriation Bill (No. 6) 2023-2024 explanatory memorandum
Context
Broader context for this bill
The 2023-24 budget settings were later overtaken by extra spending decisions, and the 2024 National Defence StrategyThe defence plan used here to justify directing most of the extra money to Defence capabilities. sharpened the need to direct more money into Defence capabilities through a reclassification from operating to capital funding. Appropriation BillA bill that gives the government legal authority to spend public money for specific purposes named in the schedules. (No. 6) responded by providing $453.458 million in supplementary appropriations for non-ordinary annual servicesThe routine government spending that must go in a different appropriation bill from the extra spending in this one., almost all for Defence, and after Parliament passed it in June 2024 the Act gave the government legal authority to make those payments in the 2023-24 year.
- 2024
2024 National Defence StrategyThe defence plan used here to justify directing most of the extra money to Defence capabilities. prioritises Defence capabilities
Ministers said the largest item in the bill would fund capabilities prioritised in the 2024 National Defence StrategyThe defence plan used here to justify directing most of the extra money to Defence capabilities. through a shift from operating to capital spending.
Hansard ↗ - 14 May 2024
Government introduces a supplementary appropriation billA bill that gives the government legal authority to spend public money for specific purposes named in the schedules. for extra 2023-24 spending
The government brought in the bill seeking $453.5 million in extra appropriations, with close to $453 million earmarked for the Department of Defence.
Hansard ↗ - 29 May 2024
House passes the bill
The bill cleared the House after second and third reading agreement, allowing the supplementary spending package to move to the Senate.
Parliamentary timeline ↗ - 24 June 2024
Senate debate ties the bill to spending decisions made after MYEFOA budget update used here as the point after which the government made extra spending decisions that needed fresh appropriation.
In the Senate, the government said Appropriation BillA bill that gives the government legal authority to spend public money for specific purposes named in the schedules. (No. 6) underpinned expenditure decisions made since the Mid-Year Economic and Fiscal OutlookA budget update used here as the point after which the government made extra spending decisions that needed fresh appropriation. for the 2023-24 financial year.
Hansard ↗ - 25 June 2024
Parliament passes the bill
Both houses passed the bill in the same form, completing the parliamentary approval needed for the extra appropriations.
Parliamentary timeline ↗ - 26 June 2024
Royal AssentThe final approval that turns a passed bill into an Act and makes the spending authority legally effective. turns the bill into law
Royal AssentThe final approval that turns a passed bill into an Act and makes the spending authority legally effective. converted the bill into an Act, giving legal effect to the supplementary appropriations for 2023-24.
Parliamentary timeline ↗
Legislative route
How did it move through Parliament?
House Senate
Introduced 14 May 2024
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 14 May 2024
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 28 May 2024
The bill reached this recorded parliamentary step.
Referred to Federation Chamber
House second reading agreed 28 May 2024
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 29 May 2024
The bill reached this recorded parliamentary step.
Reported from Federation Chamber
House third reading agreed 29 May 2024
The chamber agreed to the bill at third reading, which completed passage through that chamber.
Third reading agreed to
Introduced 24 June 2024
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 24 June 2024
A minister or sponsoring member moved the second reading, opening the main debate on the bill's purpose and principles.
Second reading moved
Second reading debate 25 June 2024
The bill reached this recorded parliamentary step.
Senate second reading agreed 25 June 2024
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 25 June 2024
The chamber agreed to the bill at third reading, which completed passage through that chamber.
Third reading agreed to
Passed both houses 25 June 2024
Both houses passed the bill in the same form, completing parliamentary passage.
Finally passed both Houses
Assent 26 June 2024
The Governor-General gave Royal AssentThe final approval that turns a passed bill into an Act and makes the spending authority legally effective., turning the bill into an Act.
Key criticism
The main case against this bill
The main criticism was that this extra spending would add to inflation, keep interest rates higher for longer, and direct more money into bureaucracy rather than urgent household or frontline priorities. That case was raised by Coalition senators in Senate debate, while other speakers supported the bill and no broader cross-party implementation critique is clearly recorded.
Criticism was mostly a broader fiscal-policy attack, not a detailed challenge to the bill's mechanics.
Money was said to be going to bureaucracy, not real priorities
Opponents said the appropriation reflects a budget that spends on bureaucracy and poorly targeted programs instead of addressing housing, cost-of-living pressure, defence effectiveness, or local frontline needs.
Further sources
Votes
Recorded votes
How the bill itself passed
The bill passed both chambers on the voices. The counted divisions below were about amendments or procedure, not 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.
Passed
House passed the bill
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.
Passed
Senate passed the bill
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.
Amendments at a glance
Recorded amendment and procedural votes grouped by chamber. Expand a vote to see the party breakdown.
Senate
Defeated Back gas as transition fuel
Defeated 12 to 29. Support came from Greens and minor parties and independents. Opposition came from Labor, Liberal Party, Nationals, and minor parties and independents.
Defeated
Back gas as transition fuel
This was a second-reading statement vote, so it would not have changed the bill text. Defeat left the appropriation billA bill that gives the government legal authority to spend public money for specific purposes named in the schedules.’s second-reading motion unchanged.
Party Aye / No
Labor 0 / 16
Greens 10 / 0
Liberal Party 0 / 8
Unknown 0 / 4
Independent 2 / 0
Nationals 0 / 1
Defeated Call for urgent legal aid funding
Defeated 13 to 27. Support came from Greens and minor parties and independents. Opposition came from Labor, Liberal Party, and Nationals. Minor-party and independent votes were split.
Defeated
Call for urgent legal aid funding
This was a second-reading statement vote, not a direct change to the appropriation billA bill that gives the government legal authority to spend public money for specific purposes named in the schedules.. Defeat meant the Senate did not add its call for extra legal assistance funding to the motion.
Party Aye / No
Labor 0 / 16
Greens 10 / 0
Liberal Party 0 / 7
Unknown 1 / 3
Independent 2 / 0
Nationals 0 / 1
These are amendment votes, not the final passage vote on the bill itself. The bill passed both chambers on the voices.
Parliamentary debate
Who spoke, and what they said
Start here — lead voices
Sponsor speech Supports
Stephen Jones
Stephen Jones supports the bill, saying it approves $453.5 million in appropriations for 2023-24, mainly to fund Defence capabilities prioritised in the 2024 National Defence StrategyThe defence plan used here to justify directing most of the extra money to Defence capabilities..
Read in Hansard ↗ Lead supporting voice Supports
Luke Howarth
Howarth says the opposition will support the bill, but he argues Labor's budget priorities are wrong and that the spending does not help with inflation, living costs or defence.
Read in Hansard ↗ Lead voice Supports
Jonathon Duniam
Duniam speaks from the opposition side after the coalition said it would support the appropriation bills, but criticises the budget as a failure for Tasmania and for environmental priorities.
Read in Hansard ↗ Lead voice Supports
Paul Scarr
Scarr speaks from the opposition side after the coalition said it would support the appropriation bills, but argues the government’s extra spending is worsening inflation and keeping pressure on interest rates and households.
Read in Hansard ↗All speeches by bloc
Labor
2 speakers · 2 support
Labor
2 speakers · 2 support
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Carol Brown Brown supports the bill, saying it provides $453.5 million in appropriations for Defence to support capabilities prioritised in the 2024 National Defence StrategyThe defence plan used here to justify directing most of the extra money to Defence capabilities..
“This bill seeks approval for appropriations from the Consolidated Revenue Fund of $453.5 million for the 2023-24 financial year. These appropriations will support the following significant items. The Department of Defence will receive close to $453 million, reflecting a reclassification from operating to capital, to support the delivery of capabilities prioritised in the 2024 National Defence Strategy. Full details of the proposed expenditure are set out in the schedule to the bill, the explanatory memorandum and the portfolio supplementary additional estimates. I commend this bill to the chamber.”
Read the full speech in Hansard ↗ -
Stephen Jones ★ Stephen Jones supports the bill, saying it approves $453.5 million in appropriations for 2023-24, mainly to fund Defence capabilities prioritised in the 2024 National Defence StrategyThe defence plan used here to justify directing most of the extra money to Defence capabilities..
“This bill seeks approval for appropriations from the Consolidated Revenue Fund of $453.5 million for the 2023-24 financial year. These appropriations will support the following significant items. The Department of Defence will receive close to $453 million, reflecting a reclassification from operating to capital, to support the delivery of capabilities prioritised in the 2024 National Defence Strategy. Full details of the proposed expenditure are set out in the schedule to the bill, the explanatory memorandum and the portfolio supplementary additional estimates. I commend this bill to the chamber.”
Read the full speech in Hansard ↗
Coalition
5 speakers · 5 support
Coalition
5 speakers · 5 support
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Luke Howarth ★ Howarth says the opposition will support the bill, but he argues Labor's budget priorities are wrong and that the spending does not help with inflation, living costs or defence.
“The opposition will support the passage of these bills, as we have the passage of the initial appropriation bill 2023-24 and the additional appropriation bill in 2024.”
Read the full speech in Hansard ↗ -
Jonathon Duniam ★ Duniam speaks from the opposition side after the coalition said it would support the appropriation bills, but criticises the budget as a failure for Tasmania and for environmental priorities.
“So I say this budget is a failure when it comes to the environment portfolio, and certainly it's a failure when it comes to the people of Tasmania, where we have been dudded and we now know how this government really feels about Tasmanian men, women and children, including salmon workers, right across the state. (Time expired)”
Read the full speech in Hansard ↗ -
Paul Scarr ★ Scarr speaks from the opposition side after the coalition said it would support the appropriation bills, but argues the government’s extra spending is worsening inflation and keeping pressure on interest rates and households.
“It doesn't give you much confidence, does it? It doesn't give you much confidence that the Labor government has what it takes to deal with the inflation problem. They've got their foot on the accelerator in terms of government spending—an extra $315 billion of government spending since this government came to power. At the same time, the Reserve Bank of Australia is doing its best to bring down inflation. But at their last meeting, the meeting immediately following the bringing down of the budget, they didn't consider a cut to interest rates but only an increase to interest rates. These are not the words of a politician but the words of the Governor of the Reserve Bank of Australia. That, from my perspective, provides objective evidence to every single Australian that the Labor government has the wrong fiscal policy for these current times.”
Read the full speech in Hansard ↗ -
Andrew Bragg Bragg speaks from the opposition side after the coalition said it would support the appropriation bills, but uses his speech to criticise higher taxes, structurally higher spending, deficits, public-service growth and the government’s fiscal priorities.
“Overall, you measure the effectiveness of a fiscal strategy by where you're going in the medium term. In the medium term, although we're looking at a surplus this year, we're looking at deficits next year of $28 billion and then $42 billion and $26 billion and then $24 billion. So we're looking at over $100 billion of deficits over the forwards. It's a significant position for the Commonwealth to take after crowing about having a surplus this year. That happened because the government locked in structurally higher spending over the medium term. They're locking in higher spending to pay for these slush funds and to pay for these decisions to increase the size of the Public Service. This goes back to my governing thought about the government's fiscal policy, which is that it really is calibrated finely to try and suit the interests to which Labor is beholden—public sector unions, and then, of course, paying off their favourite fellow travellers with policy over the cycle.”
Read the full speech in Hansard ↗ -
James McGrath McGrath says the opposition will support passage of Appropriation BillA bill that gives the government legal authority to spend public money for specific purposes named in the schedules. (No.
“The opposition will be supporting the passage of these bills, as we have the passage of the initial appropriation bill of 2023-24 and the additional appropriation bill of 2024-25. I also note the second reading amendment to the motion circulated by the Greens to progress these bills. The coalition knows the important role that gas has as a transition fuel to net zero and will be opposing that amendment.”
Read the full speech in Hansard ↗
Record
Full record
- Act title
- Appropriation Act (No. 6) 2023-2024
- Act number
- Act No. 46, 2024
- Became law
- 26 June 2024
- Takes effect
- The whole of this Act 26 June 2024
- Registered
- 27 June 2024
- Administered by
- Department of Finance
- Final law metadata was collected from the APH progress table; commencement rows were parsed from the bill text.
- Status
- Act -- Collected from the APH bill page.
- Originating house
- House of Representatives
- 14 May 2024
House · Introduced and read a first time
Introduced
The bill was formally presented to the chamber and read a first time, which starts its parliamentary journey.
- 14 May 2024
House · Second reading moved
Second reading opened
A minister or sponsoring member moved the second reading, opening the main debate on the bill's purpose and principles.
- 28 May 2024
House · Referred to Federation Chamber
Referred to Federation Chamber
The bill reached this recorded parliamentary step.
- 28 May 2024
House · Second reading agreed to
Second reading agreed
The chamber agreed to the bill at second reading, meaning it accepted the bill in principle and allowed it to continue.
- 29 May 2024
House · Reported from Federation Chamber
Reported from Federation Chamber
The bill reached this recorded parliamentary step.
- 29 May 2024
House · Third reading agreed to
Third reading agreed
The chamber agreed to the bill at third reading, which completed passage through that chamber.
- 24 June 2024
Senate · Introduced and read a first time
Introduced
The bill was formally presented to the chamber and read a first time, which starts its parliamentary journey.
- 24 June 2024
Senate · Second reading moved
Second reading opened
A minister or sponsoring member moved the second reading, opening the main debate on the bill's purpose and principles.
- 25 June 2024
Senate · Second reading debate
Second reading debate
The bill reached this recorded parliamentary step.
- 25 June 2024
Senate · Second reading agreed to
Second reading agreed
The chamber agreed to the bill at second reading, meaning it accepted the bill in principle and allowed it to continue.
- 25 June 2024
Senate · Third reading agreed to
Third reading agreed
The chamber agreed to the bill at third reading, which completed passage through that chamber.
- 25 June 2024
Parliament · Finally passed both Houses
Passed both houses
Both houses passed the bill in the same form, completing parliamentary passage.
- 26 June 2024
Assent · Assent
Assent
The Governor-General gave Royal AssentThe final approval that turns a passed bill into an Act and makes the spending authority legally effective., turning the bill into an Act.