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Portfolio Budget Statements 2015–16

Budget Related Paper No. 1.6Employment Portfolio

Budget Initiatives and Explanations ofAppropriations Specified by Outcomes

and Programmes by Entity

© Commonwealth of Australia 2015ISSN 2203-5583 (Print)ISSN 2203-5591 (Online)

This publication is available for your use under a Creative Commons BY Attribution 3.0 Australia licence, with the exception of the Commonwealth Coat of Arms, the Department of Employment logo, photographs, images, signatures and where otherwise stated. The full licence terms are available from http://creativecommons.org/licenses/by/3.0/au/legalcode .

Use of Department of Employment material under a Creative Commons BY Attribution 3.0 Australia licence requires you to attribute the work (but not in any way that suggests that the Department of Employment endorses you or your use of the work). Department of Employment material used 'as supplied'Provided you have not modified or transformed Department of Employment material in any way including, for example, by changing the Department of Employment text; calculating percentage changes; graphing or charting data; or deriving new statistics from published Department of Employment statistics – then Department of Employment prefers the following attribution: Source: The Australian Government Department of EmploymentDerivative materialIf you have modified or transformed Department of Employment material, or derived new material from those of the Department of Employment in any way, then Department of Employment prefers the following attribution: Based on The Australian Government Department of Employment data Use of the Coat of ArmsThe terms under which the Coat of Arms can be used are set out on the It’s an Honour website (see www.itsanhonour.gov.au).Other usesEnquiries regarding this licence and any other use of this document are welcome at the:Department of EmploymentGPO Box 9880Canberra ACT 2600

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Abbreviations and conventionsThe following notation may be used:

NEC/nec not elsewhere classified- nil.. not zero, but rounded to zerona not applicable (unless otherwise specified)nfp not for publication$m $ million$b $ billion

Figures in tables and in the text may be rounded. Figures in text are generally rounded to one decimal place, whereas figures in tables are generally rounded to the nearest thousand. Discrepancies in tables between totals and sums of components are due to rounding.EnquiriesShould you have any enquiries regarding this publication please contact Glen Casson, Acting Chief Finance Officer, Department of Employment on 1300 488 064.A copy of this document can be located on the Australian Government Budget website at: www.budget.gov.au.

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USER GUIDE TO THE

PORTFOLIO BUDGET STATEMENTS

USER GUIDEThe purpose of the 2015–16 Portfolio Budget Statements (PB Statements) is to inform Senators and Members of Parliament of the proposed allocation of resources to government outcomes by entities within the portfolio. Entities receive resources from the annual appropriations acts, special appropriations (including standing appropriations and special accounts), and revenue from other sources.A key role of the PB Statements is to facilitate the understanding of proposed annual appropriations in Appropriation Bills (No. 1 and No. 2) 2015–16 (or Appropriation (Parliamentary Departments) Bill (No. 1) 2015–16 for the parliamentary departments). In this sense the PB Statements are Budget related papers and are declared by the Appropriation Acts to be ‘relevant documents’ to the interpretation of the Acts according to section 15AB of the Acts Interpretation Act 1901.The PB Statements provide information, explanation and justification to enable Parliament to understand the purpose of each outcome proposed in the Bills.As required under section 12 of the Charter of Budget Honesty Act 1998, non-general government sector entities are not consolidated into the Commonwealth general government sector fiscal estimates and accordingly, these entities are not reported in the PB Statements.

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CONTENTS

Portfolio overview........................................................................................................3Employment Portfolio Overview.....................................................................................5

Entity resources and planned performance............................................................11Department of Employment..........................................................................................13Asbestos Safety and Eradication Agency.....................................................................61Comcare, the Safety, Rehabilitation and Compensation Commission, and the Seafarers Safety, Rehabilitation and Compensation Authority........................81Fair Work Commission...............................................................................................121Fair Work Ombudsman..............................................................................................149Office of the Fair Work Building Industry Inspectorate...............................................181Safe Work Australia...................................................................................................207Workplace Gender Equality Agency...........................................................................233

Glossary.................................................................................................................... 261

1

PORTFOLIO OVERVIEW

Portfolio overview

EMPLOYMENT PORTFOLIO OVERVIEW

Ministers and portfolio responsibilities

The Employment portfolio assists the Australian Government to achieve its objectives for employment. Senator the Hon. Eric Abetz is the Minister for Employment and the Hon. Luke Hartsuyker MP is the Assistant Minister for Employment.The Employment portfolio provides advice, support, programmes and services to the Australian Government and wider community. The portfolio works with other Australian Government agencies, state and territory governments and a range of service providers to connect people with jobs, workplaces with safety and business with productivity.The Department of Employment’s role is to provide national policies and programmes that help Australians find and keep employment, work in safe, fair and productive workplaces and improve the employment-related performance of enterprises in Australia.The Asbestos Safety and Eradication Agency is dedicated to working with jurisdictions and affected parties to facilitate a national approach to the eradication, handling and awareness of asbestos.Comcare, the Safety, Rehabilitation and Compensation Commission, and the Seafarers Safety, Rehabilitation and Compensation Authority contribute to a secure, safer, fairer and more productive Australia. Comcare partners with workers, their employers and unions to keep workers healthy and safe, and reduce the incidence and cost of workplace injury and disease.The Fair Work Commission is Australia’s national workplace relations tribunal. It is responsible for administering provisions of the Fair Work Act 2009 as well as a range of other functions. The Fair Work Ombudsman promotes harmonious, productive and cooperative workplace relations and ensures compliance with Commonwealth workplace laws.The Office of the Fair Work Building Industry Inspectorate is responsible for ensuring compliance with workplace laws in building and construction workplaces and delivering impartial advice to the building and construction industry.Safe Work Australia is leading the development of policy to improve work health and safety and workers’ compensation arrangements across Australia.

5

Portfolio overview

The Workplace Gender Equality Agency is responsible for promoting and improving gender equality in Australian workplaces and administering the Workplace Gender Equality Act 2012.The Employment portfolio structure and outcomes can be found at Figure 1.Figure 1: Employment portfolio structure and outcomes

Senator the Hon. Eric Abetz, Minister for EmploymentThe Hon. Luke Hartsuyker MP, Assistant Minister for Employment

Department of EmploymentRenée Leon PSM, Secretary

Outcome 1Foster a productive and competitive labour market through employment policies and programmes that assist job seekers into work, meet employer needs and increase Australia’s workforce participation.Outcome 2Facilitate jobs growth through policies that promote fair, productive and safe workplaces.

Asbestos Safety and Eradication AgencyPeter Tighe, Chief Executive Officer

OutcomeAssist in the prevention of exposure to asbestos fibres and the elimination of asbestos-related disease in Australia through implementing the National Strategic Plan for Asbestos Awareness and Management in Australia.

Comcare, the Safety, Rehabilitation and Compensation Commission, and the Seafarers Safety, Rehabilitation and Compensation Authority

Jennifer Taylor, Chief Executive OfficerOutcomeSupporting participation and productivity through healthy and safe workplaces that minimise the impact of harm in workplaces covered by Comcare.

Fair Work CommissionBernadette O’Neill, General Manager

OutcomeSimple, fair and flexible workplace relations for employees and employers through the exercise of powers to set and vary minimum wages and modern staff awards, facilitate collective bargaining, approve agreements and deal with disputes.

Fair Work OmbudsmanNatalie James, Ombudsman

6

Portfolio overview

OutcomeCompliance with workplace relations legislation by employees and employers through advice, education and, where necessary, enforcement.

7

Portfolio overview

Figure 1: Employment portfolio structure and outcomes (continued)

Office of the Fair Work Building Industry Inspectorate Nigel Hadgkiss APM, Director

OutcomeEnforce workplace relations laws in the building and construction industry and ensure compliance with those laws by all participants in the building and construction industry through the provision of education, assistance and advice.

Safe Work AustraliaMichelle Baxter, Chief Executive Officer

OutcomeHealthier, safer and more productive workplaces through improvements to Australian work health and safety and workers’ compensation arrangements.

Workplace Gender Equality AgencyLouise McSorley, Acting Director

OutcomePromote and improve gender equality in Australian workplaces including the provision of advice and assistance to employers and the assessment and measurement of workplace gender data.

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Portfolio overview

PORTFOLIO RESOURCES

Table 1 shows the total new resources provided to the portfolio in the 2015–16 budget year by entity.Table 1: Portfolio resources 2015–16

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Appropriation Bill No. 1

($m)


($m)

Special appropriation

($m)

Receipts ($m)

Total($m)

Department of EmploymentAdministered appropriations 1,544.4 - 443.1 - 1,987.5Departmental appropriations 312.9 9.3 - 17.7 340.0Total: 2,327.5Asbestos Safety and Eradication AgencyAdministered appropriations - - - - -Departmental appropriations 3.3 - - - 3.3Total: 3.3Comcare, The SafetyRehabilitation and Compensation Commission,and the Seafarers Safety,Rehabilitation and Compensation AuthorityAdministered appropriations - - - - -Departmental appropriations 7.7 - 0.1 584.2 592.1Total: 592.1Fair Work CommissionAdministered appropriations - - 0.5 - 0.5Departmental appropriations 82.0 - - 2.4 84.4Total: 84.9Office of the Fair WorkBuilding IndustyInspectorateAdministered appropriations - - - - -Departmental appropriations 35.2 - - 0.1 35.2Total: 35.2Fair Work OmbudsmanAdministered appropriations - - 0.2 - 0.2Departmental appropriations 117.9 - - 0.8 118.7Total: 118.9

Portfolio overview

Table 1: Portfolio resources 2015–16 (continued)

10


($m)


($m)

Special appropriation

($m)

Receipts ($m)

Total($m)

Safe Work AustraliaAdministered appropriations - - - - -Departmental appropriations 9.7 - 11.0 - 20.7Total: 20.7Workplace Gender EqualityAgencyAdministered appropriations - - - - -Departmental appropriations 5.1 - - 0.1 5.2Total: 5.2Portfolio total 3,187.8Less amounts transferred w ithin portfolio - - - - -

3,187.8Resources available w ithin portfolio:

ENTITY RESOURCES ANDPLANNED PERFORMANCE

Department of Employment..........................................................................................13Asbestos Safety and Eradication Agency.....................................................................61Comcare, the Safety, Rehabilitation and Compensation Commission, and the Seafarers Safety, Rehabilitation and Compensation Authority........................81Fair Work Commission...............................................................................................121Fair Work Ombudsman.............................................................................................149 Office of the Fair Work Building Industry Inspectorate...............................................181Safe Work Australia...................................................................................................207Workplace Gender Equality Agency...........................................................................233

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Department of Employment

Entity resources and planned performance

DEPARTMENT OF EMPLOYMENT

Section 1: Entity overview and resources...............................................................171.1 Strategic direction statement..........................................................................171.2 Entity resource statement..............................................................................191.3 Budget measures...........................................................................................22

Section 2: Outcomes and planned performance.....................................................262.1 Outcomes and performance information........................................................26

Section 3: Explanatory tables and budgeted financial statements........................443.1 Explanatory tables.........................................................................................443.2 Budgeted financial statements.......................................................................45

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Department of Employment Budget Statements 2015–16

DEPARTMENT OF EMPLOYMENT

Section 1: Entity overview and resources

1.1 STRATEGIC DIRECTION STATEMENT

The Department of Employment (the department) provides policy advice and delivers programmes to further the Australian Government’s agenda to create more jobs and increase productivity. The department has two outcomes: Foster a productive and competitive labour market through

employment policies and programmes that assist job seekers into work, meet employer needs and increase Australia’s workforce participation.

Facilitate jobs growth through policies that promote fair, productive and safe workplaces.

To achieve these outcomes, the major priorities for the department in 2015–16 are: implementing the new employment services system, jobactive, and

delivering efficient and effective employment services to help more job seekers to find and keep a job

implementing a national Work for the Dole programme that provides job seekers with work-like experience and makes a positive contribution to their local community

implementing a suite of measures under the government’s growing jobs and small business package to make it easier for small business to employ staff and help job seekers, particularly young job seekers, to find work. This includes a new National Work Experience Programme; new wage subsidy arrangements; a new Transition to Work programme to support young job seekers; programmes to trial innovative approaches to assisting young job seekers most at risk of unemployment; and reforms to strengthen job seeker compliance

developing policies to improve workforce participation opportunities for all Australians, specifically including young people, mature aged people, Indigenous Australians, women and parents

strengthening the job seeker compliance framework so that it provides the necessary incentive for job seekers to comply with their mutual obligation requirements

providing legal and policy advice to government to ensure the effective implementation and reform of the Fair Work Act 2009 and related frameworks

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participating in the Productivity Commission’s review of the workplace relations framework

supporting workers when their employer fails and does not leave sufficient funds to meet their entitlements

administering the Australian Government Building and Construction Work Health and Safety Accreditation Scheme to establish best practice in health and safety systems of building companies that wish to undertake Commonwealth-funded building work

contributing to higher productivity through implementation of national approaches to workplace health and safety and workers’ compensation laws, as well as advising government on reforms to improve the Comcare workers’ compensation scheme

working with Commonwealth agencies to prevent work-related injuries and disease and to improve return-to-work outcomes for injured workers

engaging with relevant international forums to promote Australia’s national interests and inform domestic policies

identifying and implementing opportunities to fulfil the government’s deregulation agenda by reducing unnecessary compliance burdens and leading cultural change.

Budget measures for 2015–16 for the department are set out in Table 1.2.

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1.2 ENTITY RESOURCE STATEMENT

Table 1.1 shows the total resources from all sources. The table summarises how resources will be applied by outcome and by administered and departmental classification. Table 1.1 Department of Employment Resource Statement – Budget Estimates for 2015–16 as at Budget May 2015

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Actual Available

Appropriation2014–15

$'000

Estimate of prior year amounts

available in 2015–16

$'000

Proposed at 2015–16 Budget

$'000

Total 2015–16 estimate

$'000Ordinary annual services1

Departmental appropriationPrior year appropriations2 68,622 66,426 - 66,426 Departmental appropriation3 327,013 - 312,944 312,944 s74 Retained revenue receipts4 20,182 - 17,713 17,713 Total 415,817 66,426 330,657 397,083

Administered expensesOutcome 1 1,435,833 - 1,523,012 1,523,012Outcome 2 27,960 - 21,035 21,035Payments to corporate entities5 7,563 - 7,727 7,727Total 1,471,356 - 1,551,774 1,551,774

Total ordinary annual services [A] 1,887,173 66,426 1,882,431 1,948,857 Other services6

Departmental non- operatingPrior year appropriations2 2,127 - - -Equity injections 23,987 - 9,333 9,333 Total 26,114 - 9,333 9,333

Total other services [B] 26,114 - 9,333 9,333 Total available annual appropriations [A+B] 1,913,287 66,426 1,891,764 1,958,190


Table 1.1 Department of Employment Resource Statement – Budget Estimates for 2015–16 as at Budget May 2015 (continued)

1 Appropriation Bill (No.1) 2015–16.2 Estimated adjusted balance carried forward from previous year.3 Includes an amount of $26.9 million in 2015–16 for the Departmental Capital Budget (refer to Table 3.2.5 for further details). For accounting purposes this amount has been designated as 'contributions by owners'.4 Estimated Retained revenue receipts under section 74 of the PGPA Act 2013.5 'Corporate entities' are corporate Commonwealth entities and Commonwealth companies as defined under the PGPA Act 2013.6 Appropriation Bill (No.2) 2015–16.7 Repayments not provided for under other appropriations. Amounts received on or before 30 June 2014 were repaid under section 28 of the Financial Management and Accountability Act 1997.8 Estimated opening balance for special accounts (less ‘Special Public Money’ held in accounts like Other Trust Monies accounts (OTM), Services for other Government and Non-agency Bodies accounts (SOG), or Services for Other Entities and Trust Moneys accounts (SOETM)).Reader note: All figures are GST exclusive.

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Actual Available


$'000



$'000


$'000


$'000Special appropriationsSpecial appropriations limited by criteria/entitlement

Public Governance, Performance and Accountability Act 2013 - s77 7 44 - 30 30 Coal Mining Industry (Long ServiceLeave Funding) Act 1992 174,618 - 174,618 174,618 Safety, Rehabilitation andCompensation Act 1988 50,069 - 36,515 36,515 Asbestos- related Claims(Management of CommonwealthLiabilities) Act 2005 22,887 - 33,211 33,211 Fair Entitlements Guarantee Act 2012 263,505 - 198,768 198,768

Total special appropriations [C] 511,123 - 443,142 443,142 Total appropriations excluding special accounts 2,424,410 66,426 2,334,906 2,401,332 Special accounts

Opening balance8 - - - - Total special accounts [D] - - - - Total resourcing [A+B+C+D] 2,424,410 66,426 2,334,906 2,401,332

Less payments to corporate entities through annual appropriations (7,563) - (7,727) (7,727)

Total net resourcing for Department of Employment 2,416,847 66,426 2,327,179 2,393,605


Table 1.1 Department of Employment Resource Statement – Budget Estimates for 2015–16 as at Budget May 2015 (continued)

Third party payments from and on behalf of other entities

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2014–15$'000

2015–16$'000

Payments made by other entities on behalf of the Department of Employment(disclosed above) - 32,885 Receipts received from other entities for the provision of services

(disclosed above in s74 Retained revenue receipts section above) 20,182 17,713Payments made to corporate entities within the Portfolio

ComcareAnnual Appropriation Bill 1 - Outcome 2 (7,563) (7,727)


1.3 BUDGET MEASURES

Budget measures in Part 1 relating to the Department of Employment are detailed in Budget Paper No. 2 and are summarised below. Table 1.2: Entity 2015–16 Budget measuresPart 1: Measures announced since the 2014–15 Mid-Year Economic and Fiscal Outlook (MYEFO)

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Programme 2014–15$'000

2015–16$'000

2016–17$'000

2017–18$'000

2018–19$'000

Expense measures Beacon Foundation - grant funding 1.1

Administered expenses - - - - - Departmental expenses - - - - -

Total - - - - - Employment Services - Changes to Service Fees and Cessation of Personal Contact Interview s 1.1

Administered expenses (45,754) - - - - Departmental expenses - - - - -

Total (45,754) - - - - Geelong Employment Facilitator - extension 1.1

Administered expenses (1,300) 750 550 - - Departmental expenses - - - - -

Total (1,300) 750 550 - - Grow ing Jobs and Small Business - engaging early school leavers 1.1

Administered expenses - 1,296 2,593 2,694 2,795 Departmental expenses - 16 - - -

Total - 1,312 2,593 2,694 2,795 Grow ing Jobs and Small Business - further strengthening the job seeker compliance arrangements 1.1

Administered expenses - 11 - 100 - Departmental expenses - 379 70 - -

Total - 390 70 100 - Grow ing Jobs and Small Business Package - National Work Experience Programme 1.1

Administered expenses - - - 338 - Departmental expenses - 3,197 4,015 4,315 3,558

Total - 3,197 4,015 4,653 3,558


Table 1.2: Entity 2015–16 Budget measuresPart 1: Measures announced since the 2014–15 Mid-Year Economic and Fiscal Outlook (MYEFO) (continued)

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2015–16$'000

2016–17$'000

2017–18$'000

2018–19$'000

Grow ing Jobs and Small Business - w age subsidies - redesign 1.1

Administered expenses (70) (103,347) (20,950) 57,556 66,403 Departmental expenses - 16 - - -

Total (70) (103,331) (20,950) 57,556 66,403

Grow ing Jobs and Small Business - Youth Employment Strategy - intensive support - transition to w ork 1.1

Administered expenses - 13,545 59,290 62,006 60,000 Departmental expenses - 8,437 1,540 1,551 1,155

Total - 21,982 60,830 63,557 61,155 Grow ing Jobs and Small Business - Youth Employment Strategy - intensive support for vulnerable job seekers 1.1

Administered expenses - 12,619 24,918 25,267 9,928 Departmental expenses - 2,878 2,643 2,621 2,620

Total - 15,497 27,561 27,888 12,548 Grow ing Jobs and Small Business - Youth Employment Strategy - revised w aiting period for youth income support 1.1

Administered expenses - - - - - Departmental expenses - 42 - - -

Total - 42 - - - Norfolk Island Reform1 1.1

Administered expenses - - 375 276 277 Departmental expenses - 128 - - -

Total - 128 375 276 277 Strengthening the Integrity of Welfare Payments2 1.1

Administered expenses - - - 2,381 9,081 Departmental expenses - - - - -

Total - - - 2,381 9,081



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2015–16$'000

2016–17$'000

2017–18$'000

2018–19$'000

Fair Entitlements Guarantee - recovery programme - trial 2.1

Administered expenses - 4,975 5,055 - - Departmental expenses - 692 736 - -

Total - 5,667 5,791 - - Total expense measures

Administered (47,124) (70,151) 71,831 150,618 148,484 Departmental - 15,785 9,004 8,487 7,333

Total (47,124) (54,366) 80,835 159,105 155,817 Capital measures Disability Employment - a better w ay to w ork3 1.1

Administered capital - - - - - Departmental capital - 111 - - -

Total - 111 - - - Grow ing Jobs and Small Business - engaging early school leavers 1.1


Total - 295 - - - Grow ing Jobs and Small Business - further strengthening the job seeker compliance arrangements 1.1


Total - 358 - - - Grow ing Jobs and Small Business Package - National Work Experience Programme 1.1


Total - 52 - - -



1 The lead entity for the measure is the Department of Infrastructure and Regional Development. The full measure description and package details appear in Budget Paper No. 2 under the Infrastructure and Regional Development portfolio.2 The lead entity for the measure is the Department of Human Services. The full measure description and package details appear in Budget Paper No. 2 under the Human Services portfolio.3 The lead entity for the measure is the Department of Social Services. The full measure description and package details appear in Budget Paper No. 2 under the Social Services portfolio.Prepared on a Government Finance Statistics (fiscal) basis.

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2015–16$'000

2016–17$'000

2017–18$'000

2018–19$'000

Grow ing Jobs and Small Business - w age subsidies - redesign 1.1


Total - 313 - - - Grow ing Jobs and Small Business - Youth Employment Strategy - intensive support for vulnerable job seekers 1.1

Administered capital - - - - - Departmental capital - 4,447 - - -

Total - 4,447 - - - Grow ing Jobs and Small Business - Youth Employment Strategy - revised w aiting period for youth income support 1.1


Total - 798 - - - Norfolk Island Reform1 1.1


Total - 65 - - - Total capital measures

Administered - - - - - Departmental - 6,439 - - -

Total - 6,439 - - -


Section 2: Outcomes and planned performance

2.1 OUTCOMES AND PERFORMANCE INFORMATION

Government outcomes are the intended results, impacts or consequences of actions by the government on the Australian community. Commonwealth programmes are the primary vehicle by which government entities achieve the intended results of their outcome statements. Entities are required to identify the programmes which contribute to government outcomes over the Budget and forward years.Each outcome is described below together with its related programmes, specifying the performance indicators and targets used to assess and monitor the performance of the Department of Employment in achieving government outcomes.Outcome 1: Foster a productive and competitive labour market through employment policies and programmes that assist job seekers into work, meet employer needs and increase Australia’s workforce participation.

Outcome 1 strategyThrough this outcome, the department assists the Australian Government to help more Australians to gain paid employment, delivering benefits for individuals, their families and the community. Strategies for achieving this outcome during 2015–16 include: implementing a new employment services system, jobactive, from

1 July 2015. The new model has a clearer focus on payment for results to ensure jobactive organisations better meet the needs of job seekers and employers

the national roll-out of a new mutual obligation framework and new Work for the Dole arrangements to ensure that job seekers remain active and engaged while looking for work

implementing the employment related elements of the government’s growing jobs and small business package to increase employment opportunities for job seekers, especially young job seekers

continuing to reduce red tape for employment services, including simplifying and streamlining processes, making more efficient use of technology and increasing collaboration and use of data across government agencies

monitoring labour market conditions in Australia and providing policy advice to the government to enable employment services to: respond to emerging labour market and economic developments; work collaboratively with other agencies and a range of external

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parties to bolster Australia’s productive capacity; and ensure a consistent approach to government delivery of employment services

maintaining collaborative relationships with relevant international organisations including the OECD, APEC and the G20 and progressing the outcomes of the 2014 G20 Leaders Summit.

Outcome expense statement

Table 2.1 provides an overview of the total expenses for Outcome 1 by programme.Table 2.1: Budgeted expenses for Outcome 1

1 Departmental appropriation combines 'Ordinary annual services (Appropriation Bill No. 1)' and 'Revenue from independent sources (s 74)'.2 Expenses not requiring appropriation in the Budget year are made up of depreciation expenses, amortisation expenses, and audit fees.Note: Departmental appropriation splits and totals are indicative estimates and may change in the course of the budget year as government priorities change.

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Outcome 1: Foster a productive and competitive labour market through employment policies and programmes that assist job seekers into w ork, meet employer needs and increase Australia's workforce participation.

2014–15Estimated

actual expenses

$'000

2015–16Estimated expenses

$'000Programme 1.1: Employment ServicesAdministered expenses

Ordinary annual services (Appropriation Bill No. 1) 1,435,833 1,523,012 Total for programme 1.1 1,435,833 1,523,012

Outcome 1 Totals by appropriation typeAdministered expenses

Ordinary annual services (Appropriation Bill No. 1) 1,435,833 1,523,012 Departmental expenses

Departmental appropriation1 254,739 262,768 Expenses not requiring appropriation in the Budget year2 26,638 29,760 Total expenses for Outcome 1 1,717,210 1,815,540

2014-15 2015-16Average staffing level (number) 1,212 1,294


Contributions to Outcome 1

Programme 1.1: Employment Services

Programme objective

The Australian Government’s new employment services system, known as jobactive, commences on 1 July 2015 and replaces the Job Services Australia programme. It contributes to the government’s overall commitment to build a strong and prosperous economy that promotes stronger workforce participation by working age Australians and helps more job seekers move from welfare to work.The objectives of the jobactive programme are to help job seekers: find and keep a job move from welfare to work.There are five services delivered as part of jobactive: jobactive employment services assist job seekers to find and keep a

job and ensure employers are provided with job seekers who meet their business needs

Work for the Dole Coordinators, which started on 1 May 2015, are responsible for sourcing suitable Work for the Dole activities in not-for-profit and government organisations to help prepare job seekers for the work environment

New Enterprise Incentive Scheme assists eligible job seekers to start and run their own small business

Harvest Labour Services and the National Harvest Labour Information Service support the requirements of growers in the horticulture industry for harvest workers.

Features which will contribute to the jobactive programme achieving its objectives include: new payment and performance frameworks to ensure jobactive

organisations are focused on better meeting the needs of job seekers and employers

new outcome payments at 4, 12 and 26 weeks to ensure jobactive organisations help job seekers to take up all available work opportunities including short term and seasonal work. Higher outcome payments will be made for longer term job opportunities

wage subsidies to encourage employers to hire young job seekers under 30 years of age, job seekers over 50 years of age, indigenous job seekers, parents and the long term unemployed

a streamlined Employment Fund for work-related items, professional services, support and targeted training that will help job seekers obtain and stay in work

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modern online and self-help facilities for job seekers and employers a stronger mutual obligation framework to ensure job seekers

remain active and engaged while looking for work, including the national roll-out of Work for the Dole for most job seekers under 50 years of age

the establishment of new Work for the Dole Coordinators to work with not for profit organisations and government agencies to identify suitable Work for the Dole activities

new indigenous outcome targets to ensure jobactive organisations are helping indigenous job seekers into work at the same rate as other job seekers in their region

the establishment of 51 new Employment Regions to promote economies of scale

reduced service prescription and red tape in the administration and delivery of employment services

the new employment services contract is for five years instead of three years, as was offered in the past

a mid-contract price adjustment paid to ensure employment providers can deliver the service for the life of the contract

a new regional loading for providers in selected regions in recognition that labour market conditions vary across Australia

greater emphasis on service quality including compulsory certification under the Quality Assurance Framework for jobactive organisations.

Other key features of jobactive are: the Relocation Assistance to Take up a Job Programme began on

1 July 2014. The programme encourages labour mobility by assisting long-term unemployed people to relocate to take up ongoing work. The government provides job seekers who have been unemployed for 12 months, and meet other eligibility requirements, up to $6000 if they move to a regional area or up to $3000 if they relocate to a metropolitan area from a regional area to take up a job (or from a capital city with high unemployment to a capital city with lower unemployment). An additional $3000 may also be made available for families with dependent children.

the Job Commitment Bonus encourages long-term unemployed young Australians to find and keep a job by offering a payment for remaining in work and off income support. From 1 July 2014, job seekers aged 18 to 30 who have been receiving Newstart Allowance or Youth Allowance (other) for 12 months or more will be eligible for a $2500 payment if they get a job and remain completely off welfare for a continuous period of 12 months. A further $4000 will be available if they remain in a job and completely off welfare for a continuous period of 24 months. First payments are expected from July 2015.

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the Tasmanian Jobs Programme is a two year trial programme which provides a one-off payment of $3250, increasing to $6500 from 13 May 2015, to any Tasmanian business that employs eligible job seekers for a period of at least six months. The programme began on 1 January 2014. To be eligible, job seekers must have been a resident in Tasmania for the preceding six months, receiving an eligible income support payment for the same period and have participation requirements.

New Enterprise Incentive Scheme (NEIS) provides job seekers with accredited small business training (Certificate IV in Small Business Management or Certificate III in Micro-business Operations), which includes the development of business plans. Once their business plan is approved and their business is up and running, participants receive business mentoring and other support for up to 52 weeks, as well as ongoing income support via NEIS Allowance, for up to 39 weeks. NEIS supports up to 6300 NEIS business start-ups per financial year.

Harvest Labour Services (HLS) helps growers to supplement local labour with out-of-area workers. Services delivered by HLS providers include: – mobilising job seekers from locations outside harvest areas and

placing them into harvest jobs– liaising with growers and supporting their harvest labour needs– marketing harvest work opportunities.

the National Harvest Labour Information Service (NHLIS) provides national coordination and dissemination of information regarding harvest-related work opportunities across Australia, including those areas not serviced by the HLS. NHLIS services include:– producing and distributing an electronic National Harvest Guide

—a comprehensive Harvest Trail information booklet maintaining information on harvest job opportunities around the country on the harvesttrail.gov.au website

– providing a national free-call telephone information service. Structural adjustment programmes—support workers who are

retrenched from eligible companies in particular industries. Eligible workers receive a higher level of support through jobactive.

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Table 2.1.1 Budgeted expenses for Programme 1.1

Linked to: Department of Human Services, Programme 1.1 Services to the Community – Social Security and Welfare and the Department of Prime Minister and Cabinet, Programme 2.1 Jobs, Land and Economy.

Programme 1.1 Performance measures The new jobactive programme is designed to help more job seekers to find and keep a job and move from welfare to work.Performance against the objective of helping people to find and keep a job will be measured in terms of the proportion of job placements that last 4, 12 and 26 weeks, in keeping with the new outcome payment structure.Performance against the objective of helping people move from welfare to work will be measured in terms of the proportion of job seekers who move off income support or reduce their reliance on income support, six months following participation in jobactive. The programme’s cost efficiency will be measured by the total programme cost per employed job seeker. Targets have been set for each performance measure based on 2014–15 labour market conditions and caseload composition. Many performance measures are affected by external factors, particularly labour market conditions and the level of disadvantage of the job seekers taking part in the programme. These factors will be considered in conjunction with reporting on the programme’s performance in the Department of Employment’s Annual Report 2015–16. Many job seekers will not have participated in jobactive for a sufficient period of time for their outcomes to be measured during 2015–16. Therefore, some performance measures for 2015–16 will relate to a smaller proportion of job seekers than in future years.

31

2014–15 Estimated

actual$'000

2015–16Budget

$'000

2016–17 Forw ard estimate

$'000


$'000

2018–19Forw ard estimate

$'000Annual administered expenses:

jobactive 6,756 1,459,566 1,778,210 1,772,123 1,793,512 Job Services Australia 1,423,988 - - - - Job Commitment Bonus 10 32,885 62,483 64,718 64,379 Intensive Support for Vulnerable Job Seekers - 12,466 27,309 31,553 17,602 Transition to Work - 13,545 59,290 62,006 60,000 Seasonal Worker Programme 1,259 1,277 1,705 1,732 1,759 Mature Age Employment 3,820 3,273 3,335 3,388 3,442

Total programme expenses 1,435,833 1,523,012 1,932,332 1,935,520 1,940,694


Performance measures for the jobactive programme are described in tables 2.1.1A to 2.1.1C. Job Services Australia will conclude on 30 June 2015. Performance results for Job Services Australia for 2014–15 are unavailable at the time of Budget and will be reported in the Department of Employment’s Annual Report 2014–15.Table 2.1.1.A Objective 1: Help job seekers find and keep a job

Performance measure

2014–15Revised budget

2015–16

Budget

2016–17

Forward

Estimate

2017–18Forward Estimate

2018–19Forward Estimat

e

Count of job placements

-1 380,000 380,000 380,000 380,000

Proportion of job placements sustained to four weeks2

- 68% 68% 68% 68%

Proportion of job placements sustained to 12 weeks2

- 44% 44% 44% 44%

Proportion of job placements sustained to 26 weeks2

- 24% 24% 24% 24%

1 Around 350,000 job placements are expected to be recorded in the final 12 months of the Job Services Australia programme in 2014–15.2 Only job placements which are eligible for a paid 4, 12 and 26 week outcomes will be included in the respective sustainability measures.

Table 2.1.1.B Objective 2: Help job seekers move from welfare to work

Performance measure


2015–16

Budget

2016–17

Forward

Estimate



Proportion of job seekers moving off income support, or

- 40% 40% 40% 40%

32


Performance measure


2015–16

Budget

2016–17

Forward

Estimate



with reduced reliance on income support, six months after participation in jobactive

Table 2.1.1.C Overall programme summary

Performance measure


2015–16 Budget



2018–19 Forward Estimate

Cost per employment outcome1

- $2500 $2500 $2500 $2500

1 Programme costs take into account expenditure such as Employment Fund expenditure, service fees and paid outcomes. The number of employment outcomes is taken from the estimated number of job seekers who are employed three months following participation in the programme.Outcome 1 Departmental outputs

The department supports the objectives of this outcome through policy development, programme design and management. The department provides an administrative framework that includes quality and programme assurance, purchasing and contract management, information technology and evaluation.The department undertakes a range of reporting to evaluate the performance of programmes administered under Outcome 1.

Performance information for Outcome 1 departmental outputs

Table 2.1.1.D Client satisfactionPerformance measure 2015–16 estimateLevel of satisfaction of service providers with contracted information and support

80%

33


Outcome 2: Facilitate jobs growth through policies that promote fair, productive and safe workplaces.

Outcome 2 strategyThrough this outcome, the department supports the Australian Government to deliver a national workplace relations system that encourages employers and employees to agree on productive and competitive working arrangements to support jobs growth. The department also supports the government to improve workplace health and safety and workers’ compensation arrangements for Commonwealth and private sector employers and their employees under the Comcare scheme.The Productivity Commission review of the workplace relations system is an important initiative that will inform the department’s policy development work. Strategies for achieving this outcome in 2015–16 include: providing legal and policy advice to the government on the

implementation of its workplace relations, work health and safety and workers’ compensation reform agenda

preparing submissions and participating in hearings and inquiries on behalf of the government

continuing to prepare legislation and working closely with stakeholders to implement government priorities

contributing to safer workplaces and higher productivity through implementation of national approaches to workplace health and safety and workers’ compensation laws

leading legislative and non-legislative measures to improve the Comcare scheme

continuing to implement the improvements agreed by the government to modernise and streamline the work health and safety accreditation scheme (for contractors that undertake Commonwealth funded building work).

streamlining gender reporting while maintaining a focus on driving gender equality in the workplace through supporting a working group that is examining better ways to implement gender reporting

continuing to work cooperatively with states and territories to ensure ongoing effectiveness of the national workplace relations system, and work health and safety frameworks

supporting the integrity of the workplace relations framework through strategic interventions in key cases before courts and tribunals

promoting the effective operation of the workplace relations system through working closely with existing workplace relations agencies

34


including the Fair Work Commission, the Fair Work Ombudsman, Office of the Fair Work Building Industry Inspectorate and, subject to passage of legislation by the parliament, its replacement the Australian Building and Construction Commission

working with Safe Work Australia, Comcare and the Asbestos Safety and Eradication Agency to promote the safety and wellbeing of employees and the Workplace Gender Equality Agency to promote gender equality in workplaces

maintaining the workplace agreement database and preparing quarterly published reports, policy advice and programme administration of the Fair Entitlements Guarantee programme, research and evaluation and support to the International Labour Organization.

35



Table 2.2 provides an overview of the total expenses for Outcome 2 by programme.Table 2.2 Budgeted expenses and resources for Outcome 2

1 Departmental appropriation combines 'Ordinary annual services (Appropriation Bill No. 1)' and 'Revenue from independent sources (s 74)'.2 Expenses not requiring appropriation in the Budget year are made up of depreciation expenses, amortisation expenses, and audit fees.

Note: Departmental appropriation splits and totals are indicative estimates and may change in the course of the budget year as government priorities change.

36

Outcome 2: Facilitate jobs growth through policies that promote fair, productive and safe workplaces.

2014–15Estimated

actual expenses

$'000


$'000Programme 2.1: Employee AssistanceAdministered expenses

Ordinary annual services (Appropriation Bill No. 1) 13,317 6,025 Special appropriations 438,123 373,386 Total for programme 2.1 451,440 379,411

Programme 2.2: Workplace AssistanceAdministered expenses

Ordinary annual services (Appropriation Bill No. 1) 14,643 15,010 Total for programme 2.2 14,643 15,010

Programme 2.3: Workers Compensation PaymentsAdministered expenses

Ordinary annual services (Appropriation Bill No. 1) 7,563 7,727 Special appropriations 72,956 69,726 Total for programme 2.3 80,519 77,453

Outcome 2 Totals by appropriation typeAdministered expenses

Ordinary annual services (Appropriation Bill No. 1) 35,523 28,762 Special appropriations 511,079 443,112

Departmental expensesDepartmental appropriation1 60,783 41,011

Expenses not requiring appropriation in the Budget year2 4,312 4,772 Total expenses for Outcome 2 611,697 517,657

2014-15 2015-16Average staffing level (number) 483 497



Programme 2.1: Employee Assistance

Programme objective

The promotion of fair workplaces by ensuring the protection of employee entitlements in certain circumstances.

Administered items Coal Mining Industry (Long Service Leave) Administration Act 1992

financing arrangements—under this Act the cost of portable long service leave entitlements is managed through a central fund administered by the Coal Mining Industry (Long Service Leave Funding) Corporation. Monthly levy collection transfers are made from the consolidated revenue fund to the central fund.

Fair Entitlements Guarantee—established under the Fair Entitlements Guarantee Act 2012 to provide financial assistance for certain unpaid employment entitlements when an employee loses their job through the liquidation or bankruptcy of their employer on or after 5 December 2012. The recovery of costs to the Fair Entitlements Guarantee programme will be strengthened through a two year trial of enhanced recovery activity, including an evaluation to assess the success of the programme and review whether further funding should be provided.


37

2014–15 Estimated

actual$'000

2015–16Budget

$'000


$'000


$'000



General Employee Entitlements and Redundancy Scheme 12,817 - - - - Fair Entitlements Guarantee 500 6,025 6,805 1,750 1,750

Special appropriations:Coal Mining Industry (LSL) Act1992 174,618 174,618 174,618 174,618 174,618 Fair Entitlements Guarantee Act 2012 263,505 198,768 199,264 195,532 195,532

Total programme expenses 451,440 379,411 380,687 371,900 371,900


Programme 2.2: Workplace Assistance

Programme objective

To contribute to the productivity agenda by ensuring the operation of the workplace relations system through initiatives designed to encourage employers and employees to adopt flexible and modern workplace relations.

Administered items International Labour Organization (ILO)—the Australian

Government’s annual membership subscription to the ILO. The government works with other member states and representatives from employer and employee organisations to: participate in international policy discussions on labour issues; contribute to technical cooperation in the Asia-Pacific region; report on standards at the national level; and participate as a member of the ILO Governing Body.

Protected Action Ballots Scheme—costs incurred by the Australian Electoral Commission in relation to protected action ballots. A protected action ballot is a statutory prerequisite to protected industrial action under the Fair Work Act 2009.

Centre for Workplace Leadership—the government’s contribution to the Centre. Funding to the Centre will cease at the end of the 2015–16 year as contracted.


38

2014–15 Estimated

actual$'000

2015–16Budget

$'000


$'000


$'000



International Labour OrganizationSubscription 9,948 10,277 10,594 10,620 10,652 Protected Action Ballots Scheme 1,600 1,600 1,600 1,600 1,600 Centre for Workplace Leadership 3,095 3,133 - - -



Programme 2.3: Workers’ Compensation Payments

Information on Workers’ Compensation Payments can be found in Comcare, the Safety, Rehabilitation and Compensation Commission, and the Seafarers Safety, Rehabilitation and Compensation Authority on page 94.Table 2.2.3 Budgeted expenses for Programme 2.3

39

2014–15 Estimated

actual$'000

2015–16Budget

$'000


$'000


$'000



Comcare 7,563 7,727 6,194 6,235 6,279 Special appropriations:

Asbestos-related Claims Act 2005 22,887 33,211 32,574 34,472 35,849 Safety, Rehabilitation & CompensationAct 1998 50,069 36,515 35,312 34,109 32,614



Outcome 2: Effectiveness Indicators

Three effectiveness indicators are used to assess the ‘health’ of the workplace relations system: productivity and wages growth; levels of industrial action; and use of enterprise bargaining. Table 2.2.A The national workplace relations system supports improved productivity outcomesPerformance measure

December quarter

2013

December quarter

2014

Comments

Productivity growth as measured by output per hour worked in the market sector (annual, trend terms)

1.9% 0.3% The data show that productivity fell from 1.9 per cent growth over the year to the December quarter 2013

to 0.3 per cent over the year to the December quarter

2014. Recent productivity growth numbers may be

subject to revision.ABS Wage Price Index (annual, seasonal adjusted terms)

2.6% 2.5% The Wage Price Index remained steady at 2.5 per cent, compared to 2.6 per

cent the previous year.Table 2.2.B Incidence of industrial action (allowing for variations in the bargaining cycle)Performance measure

December quarter

2013

December quarter

2014

Comments

Working days lost per thousand employees (annual WDL/1000E)

12.6 6.8 The incidence of industrial disputes for the December

quarter 2014 fell to 6.8 working days lost per thousand employees,

compared to 12.6 working days lost per thousand employees in the same

quarter of 2013. The data have limitations as only

disputes that result in a total of 10 or more working days lost are counted by the ABS

survey and include industrial action taken by state

system employees. Working days lost is a volatile

measure which is affected by a range of factors such as

bargaining cycles.

40


Table 2.2.C Enterprise bargaining is used by employers and employees to negotiate pay and conditionsPerformance measure

December quarter

2013

December quarter

2014

Comments

Number of enterprise agreements under the Fair Work Act 2009 that have not passed their nominal expiry date

23,243 agreements covering

an estimated

2.61 million employees (current as

at 31 Decemb

er 2013)

18,936 agreements covering

an estimated

2.40 million employees (current as

at 31 Decemb

er 2014)

There was a fall in the number and coverage of

enterprise agreements to 18,936 agreements covering

an estimated 2.4 million employees as at the

December quarter 2014. The fall in the number of

agreements is primarily due to industry bargaining

cycles, particularly in the construction industry where

a large number of agreements that expired

earlier in 2014 had not yet been replaced.

Outcome 2: Departmental outputs

Departmental outputs incorporate a range of programmes and activities managed within the department that help ensure workplaces are safe, fair and productive. This is achieved by, for example, improving the legislative underpinnings of the workplace relations framework, leveraging Commonwealth funding to improve safety on building sites, improving ‘return to work’ outcomes for people injured in the workplace, protecting workers’ entitlements when their employment terminates because of liquidation or bankruptcy of their employer and engaging with other agencies and internationally to achieve better workplace relations outcomes. In 2015–16 the department will: provide legal and policy advice on the operation of the national

workplace relations system support the passage of legislative amendments to the Fair Work Act

2009 and the Fair Work (Registered Organisations) Act 2009 before the Parliament

provide legal and policy advice on key matters before industrial tribunals and the courts

provide legal and policy advice on the Comcare Scheme, and support the legislative passage of reforms to the Scheme

support improved practices in relation to work health and safety and workers’ compensation

work with industry participants to improve the Commonwealth’s Seacare scheme

41


improve the performance of the building and construction industry by supporting the passage of legislation to re-establish the Australian Building and Construction Commission and issue a revised building code setting out the government’s expectations for best practice workplace relations behaviour on construction projects funded by the Commonwealth

contribute to reviews initiated by the Fair Work Commission including the 2016 Annual Wage Review

ensure Commonwealth funded projects are undertaken by builders with safety systems and practices accredited by the Federal Safety Commissioner (under the Australian Government Building and Construction WHS Accreditation Scheme)

work with the Asbestos Safety and Eradication Agency, Comcare, Fair Work Commission, Fair Work Ombudsman, Office of the Fair Work Building Industry Inspectorate, Safe Work Australia and the Workplace Gender Equality Agency to reduce unnecessary regulatory and administrative burden for business

contribute to government initiated reviews including the Productivity Commission inquiry into the workplace relations framework

ensure timely and accurate payment of financial assistance to eligible claimants under the Fair Entitlements Guarantee Act 2012 which protects certain unpaid employee entitlements where employees lose their employment due to the liquidation or bankruptcy of their employer

administer the Centre for Workplace Leadership Fund to encourage higher performing and innovative workplaces by strengthening Australia’s leadership capability

engage strategically with relevant international organisations such as the ILO and OECD on workplace relations, work health and safety and employment participation policy issues to advance Australia’s interests.

42


Table 2.2.D Outcome 2 departmental outputs performance measures Performance indicator 2015–16

estimateFair Entitlements Guarantee (FEG) - Timeliness of processing claims – percentage of claims processed within 16 weeks of receipt of an effective claim1

80%

FEG - Timeliness of processing claims - average processing time for all claims2

14 weeks

FEG - Accuracy – less than 5% of claim decisions are incorrect 3

<5%

FEG - Stakeholder satisfaction – Claimants are satisfied with the Department’s administration of the Fair Entitlements Guarantee4

80%

FEG - Stakeholder satisfaction – Insolvency practitioners are satisfied with the Department’s administration of the Fair Entitlements Guarantee

80%

Building Code - Timeliness of departmental responses to client requests for assessment of industrial instruments against the code and guidelines

95% completed within 10

working daysAustralian Government Building and Construction WHS Accreditation Scheme (Scheme) - Level of satisfaction of clients with the provision of advice, information, education and promotion of safer workplaces on Australian Government construction sites by the Office of the Federal Safety Commissioner

Effective or above

Scheme - timeliness of responding to initial applications for accreditation5

More than 90% of accreditation applications are

assessed and contact is made

with the applicant within 10 working days

1 The timeliness indicator for FEG 2015–16 has been revised to account for the overall time it takes to process claims under the scheme. Previously used indicators related to specific components of the process only.2 To provide additional information and transparency on processing times, a second timeliness measure will be implemented from 2015–16.3 The accuracy indicator has also been revised. Previously, the accuracy of decision making was based on the number of review claim decisions which found the initial decision to be incorrect. This encompassed only a small proportion of all initial claim decisions in the scheme. Expanding the measure to include all claim decisions (regardless of whether they were subject to a review or appeal of the original decision) provides more comprehensive assurance on quality in programme delivery.4 The stakeholder satisfaction indicator has been revised to incorporate the views of claimants. Stakeholder satisfaction has been previously measured based on the views of insolvency practitioners.5 Changes to the key performance indicators for the Office of the Federal Safety Commissioner are currently being finalised in consultation with the building and construction industry.

43


Section 3: Explanatory tables and budgeted financial statementsSection 3 presents explanatory tables and budgeted financial statements which provide a comprehensive snapshot of entity finances for the 2015–16 budget year. It explains how budget plans are incorporated into the financial statements and provides further details of the reconciliation between appropriations and programme expenses, movements in administered funds, special accounts and government indigenous expenditure.

3.1 EXPLANATORY TABLES

3.1.1 Movement of administered funds between yearsAdministered funds can be provided for a specified period, for example under annual Appropriation Acts. Funds not used in the specified period with the agreement of the Finance Minister may be moved to a future year. Table 3.1.1 shows the movement of administered funds approved between years. Table 3.1.1: Movement of administered funds between years1

1 Figures displayed as a negative (-) represent a decrease in funds and a positive reflect an increase in funds.

3.1.2 Special accountsThe department has no special accounts. For this reason Table 3.1.2 is not presented.3.1.3 Australian Government Indigenous expenditureThe department has no Australian Government Indigenous expenditure. For this reason Table 3.1.3 is not presented.

44

2014–15$'000

2015–16$'000

2016–17$'000

2017–18$'000

2018–19$'000

Outcome 1: Programme 1.1

Employment Services (2,155) 538 539 539 539 Total movement of administered funds (2,155) 538 539 539 539


3.2 BUDGETED FINANCIAL STATEMENTS

3.2.1 Differences in entity resourcing and financial statements3.2.2 Analysis of budgeted financial statementsAn analysis of the department’s budgeted financial statements, which consists of the budgeted departmental financial statements and administered schedules, is provided below. The 2014–15 estimated actual is used as the comparative year for the analysis although some comments on broader trends in the forward estimates are provided. Departmental financial statementsIncome StatementThe department’s income statement reflects a deficit in 2015–16. This deficit is solely attributable to the depreciation expense for the year.Expenses for 2015–16 are estimated to be $338.3 million. This reflects a decrease of $8.8 million from the estimated actual expense for 2014–15 and is predominantly due to the impact of one-off expenses in 2014–15 and new budget measures. Balance SheetThe budgeted net asset position of $101.1 million for 2015–16 represents a small increase of $2.1 million from the 2014–15 estimated actual. The accumulated deficit apparent in the balance sheet represents the accounting treatment applicable to depreciation expense.The structure of the balance sheet reflects the nature of the organisation. Key assets are office fit-out (included in land and buildings), computer and office machines (included in infrastructure, plant and equipment), and computer software (included in intangibles). The most significant liability relates to employees and the leave provisions that are accrued as a result of their employment.Administered StatementsIncome StatementAdministered revenue for the 2015–16 budget year are estimated to be $193.3 million, consistent with the 2014–15 estimated actual.Administered expenses in 2015–16 are estimated to be $2.0 billion, a slight increase of $12.5 million from the 2014–15 estimated actual. This increase is attributable to budget measures and revised programme parameters. Balance SheetThe minor variations in the balance sheet are as a result of changes in payables, which reflect the timing of grant payments from year to year.

45


3.2.3 Budgeted financial statements tablesTable 3.2.1: Comprehensive income statement (showing net cost of services) for the period ended 30 June

46

2014–15 Estimated

actual$'000

2015–16Budget

$'000


$'000


$'000


$'000EXPENSESEmployee benefits 221,467 218,026 217,168 217,346 216,753 Suppliers 95,164 86,213 76,902 78,677 79,579 Depreciation and amortisation 30,490 34,072 32,429 30,906 29,876 Total expenses 347,121 338,311 326,499 326,929 326,208 LESS: OWN-SOURCE INCOMEOw n-source revenueSale of goods and rendering of services 20,182 17,713 17,713 17,713 17,713 Other revenue 460 460 460 460 460 Total own-source revenue 20,642 18,173 18,173 18,173 18,173 GainsOther gains - - - - - Total gains - - - - - Total own-source income 20,642 18,173 18,173 18,173 18,173 Net cost of/(contribution by) services 326,479 320,138 308,326 308,756 308,035 Revenue from Government 295,989 286,066 275,897 277,850 278,159

Surplus/(deficit) attributable to the Australian Government (30,490) (34,072) (32,429) (30,906) (29,876)OTHER COMPREHENSIVE INCOMEChanges in asset revaluation surplus - - - - - Total other comprehensive income - - - - - Total comprehensive income/(loss) (30,490) (34,072) (32,429) (30,906) (29,876)Total comprehensive income/(loss) attributable to the Australian Government (30,490) (34,072) (32,429) (30,906) (29,876)


Table 3.2.1: Comprehensive income statement (showing net cost of services) for the period ended 30 June (continued)Note: Impact of net cash appropriation arrangements

1 From 2010–11, the government introduced net cash appropriation arrangements where Bill 1 revenue appropriations for the depreciation/amortisation expenses of non-corporate Commonwealth entities (and select corporate Commonwealth entities) were replaced with a separate capital budget (the Departmental Capital Budget, or DCB) provided through Bill 1 equity appropriations. For information regarding DCBs, please refer to Table 3.2.5 Departmental Capital Budget Statement.Prepared on Australian Accounting Standards basis.

47

2014–15$'000

2015–16$'000

2016–17$'000

2017–18$'000

2018–19$'000

Total comprehensive income/(loss) excluding depreciation/amortisation expenses previously funded through revenue appropriations.

- - - - - less depreciation/amortisation expenses previously funded through revenue appropriations1

30,490 34,072 32,429 30,906 29,876

Total comprehensive income/(loss) - as per the statement of comprehensive income

(30,490) (34,072) (32,429) (30,906) (29,876)


Table 3.2.2: Budgeted departmental balance sheet (as at 30 June)

48

2014–15 Estimated

actual$'000

2015–16Budget

$'000


$'000


$'000


$'000ASSETSFinancial assets

Cash and cash equivalents 2,768 2,768 2,768 2,768 2,768Trade and other receivables 72,032 71,568 71,213 71,848 72,521

Total financial assets 74,800 74,336 73,981 74,616 75,289 Non-financial assets

Land and buildings 21,344 20,173 18,124 17,871 16,278Property, plant and equipment 13,770 15,580 14,123 13,826 13,602Intangibles 63,537 65,037 63,478 60,406 59,818Other non-f inancial assets 10,252 10,252 10,252 10,252 10,252

Total non-financial assets 108,903 111,042 105,977 102,355 99,950 Assets held for sale - - - - -

Total assets 183,703 185,378 179,958 176,971 175,239 LIABILITIESPayables

Suppliers 6,146 6,146 6,146 6,146 6,146Other payables 11,690 11,690 11,690 11,690 11,690

Total payables 17,836 17,836 17,836 17,836 17,836 Provisions

Employee provisions 65,592 65,128 64,773 65,408 66,081Other provisions 1,315 1,315 1,315 1,315 1,315

Total provisions 66,907 66,443 66,088 66,723 67,396 Total liabilities 84,743 84,279 83,924 84,559 85,232 Net assets 98,960 101,099 96,034 92,412 90,007


Table 3.2.2: Budgeted departmental balance sheet (as at 30 June) (continued)

*’Equity’ is the residual interest in assets after deduction of liabilities.Prepared on Australian Accounting Standards basis.

49

2014–15 Estimated

actual$'000

2015–16Budget

$'000


$'000


$'000


$'000EQUITY*Parent entity interest

Contributed equity 151,515 187,726 215,090 242,374 269,845Reserves 3,376 3,376 3,376 3,376 3,376Retained surplus (accumulated deficit) (55,931) (90,003) (122,432) (153,338) (183,214)

Total parent entity interest 98,960 101,099 96,034 92,412 90,007 Total Equity 98,960 101,099 96,034 92,412 90,007


Table 3.2.3: Departmental statement of changes in equity — summary of movement (Budget year 2015–16)

Prepared on Australian Accounting Standards basis.

50

Retained earnings

$'000

Asset revaluation

reserve$'000

Contributed equity/ capital$'000

Total equity

$'000Opening balance as at 1 July 2015

Balance carried forw ard from previous period (55,931) 3,376 151,515 98,960Adjustment for changes in accounting policies - - - -

Adjusted opening balance (55,931) 3,376 151,515 98,960 Comprehensive income

Other comprehensive income - - - - Surplus/(deficit) for the period (34,072) - - (34,072)

Total comprehensive income (34,072) - - (34,072)of w hich:

Attributable to the Australian Government (34,072) - - (34,072)

Transactions with ownersContributions by owners

Equity Injection - Appropriation - - 9,333 9,333 Departmental Capital Budget (DCB) - - 26,878 26,878

Sub-total transactions with owners - - 36,211 36,211 Transfers betw een equity components - - - -

Estimated closing balance as at 30 June 2016 (90,003) 3,376 187,726 101,099

Less: non-controlling interests - - - - Closing balance attributable to the Australian Government (90,003) 3,376 187,726 101,099


Table 3.2.4: Budgeted departmental statement of cash flows (for the period ended 30 June)

51

2014–15 Estimated

actual$'000

2015–16Budget

$'000


$'000


$'000


$'000OPERATING ACTIVITIESCash received

Appropriations 292,803 286,530 276,252 277,215 277,486Sale of goods and rendering of services 22,996 17,923 17,923 17,923 17,923Net GST received 9,236 7,354 7,078 7,330 7,557

Total cash received 325,035 311,807 301,253 302,468 302,966 Cash used

Employees 227,039 218,490 217,523 216,711 216,080Suppliers 100,897 93,317 83,730 85,757 86,886

Total cash used 327,936 311,807 301,253 302,468 302,966 Net cash from/(used by) operating activities (2,901) - - - - INVESTING ACTIVITIESCash received

Proceeds from sales of property, plant and equipment - - - - -

Total cash received - - - - - Cash used

Purchase of property, plant and equipment 55,011 36,211 27,364 27,284 27,471

Total cash used 55,011 36,211 27,364 27,284 27,471 Net cash from/(used by) investing activities (55,011) (36,211) (27,364) (27,284) (27,471)


Table 3.2.4: Budgeted departmental statement of cash flows (for the period ended 30 June) (continued)


52

2014–15 Estimated

actual$'000

2015–16Budget

$'000


$'000


$'000


$'000FINANCING ACTIVITIESCash received

Contributed equity 55,011 36,211 27,364 27,284 27,471Total cash received 55,011 36,211 27,364 27,284 27,471 Cash used

Other - - - - - Total cash used - - - - - Net cash from/(used by) financing activities 55,011 36,211 27,364 27,284 27,471 Net increase/(decrease) in cash held (2,901) - - - -

Cash and cash equivalents at the beginning of the reporting period 5,669 2,768 2,768 2,768 2,768

Cash and cash equivalents at the end of the reporting period 2,768 2,768 2,768 2,768 2,768


Table 3.2.5: Departmental capital budget statement (for the period ended 30 June)

1 Includes both current Bill 2 and prior Act 2/4/6 appropriations and special capital appropriations.2 Does not include annual finance lease costs. Includes purchases from current and previous years' Departmental Capital Budgets (DCBs).Prepared on Australian Accounting Standards basis.

53

2014–15 Estimated

actual$'000

2015–16Budget

$'000


$'000


$'000


$'000NEW CAPITAL APPROPRIATIONS

Capital budget - Bill 1 (DCB) 31,024 26,878 27,364 27,284 27,471Equity injections - Bill 2 23,987 9,333 - - -

Total new capital appropriations 55,011 36,211 27,364 27,284 27,471Provided for:

Purchase of non-financial assets 55,011 36,211 27,364 27,284 27,471

Total Items 55,011 36,211 27,364 27,284 27,471PURCHASE OF NON-FINANCIAL ASSETS

Funded by capital appropriations1 23,987 9,333 - - - Funded by capital appropriation - DCB2 31,024 26,878 27,364 27,284 27,471

TOTAL 55,011 36,211 27,364 27,284 27,471RECONCILIATION OF CASH USED TO ACQUIRE ASSETS TO ASSET MOVEMENT TABLETotal purchases 55,011 36,211 27,364 27,284 27,471

Total cash used to acquire assets 55,011 36,211 27,364 27,284 27,471


Table 3.2.6: Statement of asset movements (Budget year 2015–16)

1 "Appropriation equity" refers to equity injections appropriations provided through Appropriation Bill (No. 2) 2015-16, including CDABs.Prepared on Australian Accounting Standards basis.

54

Buildings$'000

Other property, plant and

equipment$'000

Computer software and

intangibles$'000

Total$'000

As at 1 J uly 2015Gross book value 29,401 26,992 128,695 185,088 Accumulated depreciation/amortisation and impairment (8,057) (13,222) (65,158) (86,437)

Opening net book balance 21,344 13,770 63,537 98,651 Capital asset additions

Estimated expenditure on new or replacement assetsBy purchase - appropriation equity1 6,156 6,990 23,065 36,211 Total additions 6,156 6,990 23,065 36,211 Other movementsDepreciation/amortisation expense (7,327) (5,180) (21,565) (34,072)Total other movements (7,327) (5,180) (21,565) (34,072)

As at 30 J une 2016Gross book value 35,557 33,982 151,760 221,299 Accumulated depreciation/amortisation and impairment (15,384) (18,402) (86,723) (120,509)

Closing net book balance 20,173 15,580 65,037 100,790


Table 3.2.7: Schedule of budgeted income and expenses administered on behalf of Government (for the period ended 30 June)


55

2014–15 Estimated

actual$'000

2015–16Budget

$'000


$'000


$'000


$'000EXPENSES

Suppliers 1,454,643 1,313,745 1,502,418 1,451,964 1,472,854 Subsidies 174,618 305,930 489,714 533,862 529,499 Personal benefits 269,560 284,525 315,481 316,214 317,443 Grants 76,051 82,959 85,486 86,181 73,513 Payments to corporate entities 7,563 7,727 6,194 6,235 6,279

Total expenses administered on behalf of Government 1,982,435 1,994,886 2,399,293 2,394,456 2,399,588 LESS:OWN-SOURCE INCOMEOwn-source revenueTaxation revenue

Other taxes 174,618 174,618 174,618 174,618 174,618 Total taxation revenue 174,618 174,618 174,618 174,618 174,618 Non-taxation revenue

Other revenue 18,681 18,695 18,695 18,695 18,695 Total non-taxation revenue 18,681 18,695 18,695 18,695 18,695 Total own-source revenue administered on behalf of Government 193,299 193,313 193,313 193,313 193,313 Gains

Other gains - - - - - Total gains administered on behalf of Government - - - - - Total own-sourced income administered on behalf of Government 193,299 193,313 193,313 193,313 193,313 Net cost of/(contribution by) services 1,789,136 1,801,573 2,205,980 2,201,143 2,206,275 Surplus (deficit) (1,789,136) (1,801,573) (2,205,980) (2,201,143) (2,206,275)OTHER COMPREHENSIVE INCOME

Changes in asset revaluation surplus - - - - - Total other comprehensive income - - - - - Total comprehensive income/(loss) (1,789,136) (1,801,573) (2,205,980) (2,201,143) (2,206,275)


Table 3.2.8: Schedule of budgeted assets and liabilities administered on behalf of Government (as at 30 June)

56

2014–15 Estimated

actual$'000

2015–16Budget

$'000


$'000


$'000


$'000ASSETS Financial assets

Taxation receivables 13,207 13,207 13,207 13,207 13,207 Trade and other receivables 10,129 10,129 10,129 10,129 10,129 Investments accounted for using the equity method 145,477 145,477 145,477 145,477 145,477


Other non-f inancial assets 4,980 5,297 5,297 5,323 5,329 Total non-financial assets 4,980 5,297 5,297 5,323 5,329

Assets held for sale - - - - - Total assets administered on behalf of Government 173,793 174,110 174,110 174,136 174,142 LIABILITIESPayables

Suppliers 21,642 21,642 21,642 21,642 21,642 Subsidies 14,810 14,810 14,810 14,810 14,810 Personal benefits 9,441 9,441 9,441 9,441 9,441 Grants 459 459 459 459 459 Other payables 2,791,026 2,779,135 2,772,281 2,765,073 2,758,699

Total payables 2,837,378 2,825,487 2,818,633 2,811,425 2,805,051


Table 3.2.8: Schedule of budgeted assets and liabilities administered on behalf of Government (as at 30 June) (continued)


57

2014–15 Estimated

actual$'000

2015–16Budget

$'000


$'000


$'000


$'000Provisions

Employee provisions - - - - - Other provisions - - - - -

Total provisions - - - - - Total liabilities administered on behalf of Government 2,837,378 2,825,487 2,818,633 2,811,425 2,805,051 Net assets/(liabilities) (2,663,585) (2,651,377) (2,644,523) (2,637,289) (2,630,909)


Table 3.2.9: Schedule of budgeted administered cash flows (for the period ended 30 June)

58

2014–15 Estimated

actual$'000

2015–16Budget

$'000


$'000


$'000



Taxes 174,618 174,618 174,618 174,618 174,618 Net GST received 150,000 160,000 180,000 170,000 180,000 Other 18,681 18,695 18,695 18,695 18,695


Grant 76,051 82,959 85,486 86,181 73,513 Subsidies paid 174,618 305,930 489,714 533,862 529,499 Personal benefits 269,560 284,525 315,481 316,214 317,443 Suppliers 1,604,655 1,474,062 1,682,418 1,621,990 1,652,860 Payments to corporate entities 7,563 7,727 6,194 6,235 6,279

Total cash used 2,132,447 2,155,203 2,579,293 2,564,482 2,579,594 Net cash from/(used by) operating activities (1,789,148) (1,801,890) (2,205,980) (2,201,169) (2,206,281)


Table 3.2.9: Schedule of budgeted administered cash flows (for the period ended 30 June) (continued)


Table 3.2.10: Administered capital budget statement (for the period ended 30 June)The department has no administered capital purchases to report. For this reason Table 3.2.10 is not presented.Table 3.2.11: Statement of administered asset movements (Budget year 2015–16) The department has no administered assets to report. For this reason Table 3.2.11 is not presented.

59

2014–15 Estimated

actual$'000

2015–16Budget

$'000


$'000


$'000


$'000Net increase/(decrease) in cash held (1,789,148) (1,801,890) (2,205,980) (2,201,169) (2,206,281)

Cash and cash equivalents at beginning of reporting period - - - - -

Cash from Official Public Account for:- Appropriations 1,982,491 1,995,233 2,399,323 2,394,512 2,399,624

Total cash from Official Public Account 1,982,491 1,995,233 2,399,323 2,394,512 2,399,624 Cash to Official Public Account for:

- Appropriations (193,343) (193,343) (193,343) (193,343) (193,343)Total cash to Official Public Account (193,343) (193,343) (193,343) (193,343) (193,343)

Cash and cash equivalents at end of reporting period - - - - -

Asbestos Safety andEradication Agency


ASBESTOS SAFETY AND ERADICATION AGENCY



Section 3: Explanatory tables and budgeted financial statements........................723.1 Explanatory tables.........................................................................................723.2 Budgeted financial statements.......................................................................73

63

ASEA Budget Statements 2015–16

ASBESTOS SAFETY AND ERADICATION AGENCY

Section 1: Entity Overview and Resources


The Asbestos Safety and Eradication Agency (ASEA) was established by the Asbestos Safety and Eradication Agency Act 2013. ASEA operates under the Australian Government’s accountability and governance frameworks.ASEA is Australia’s national agency dedicated to working with jurisdictions and stakeholders to create a nationally consistent approach to asbestos management and awareness to reduce the risks of asbestos related diseases. ASEA provides a national focus on asbestos issues which go beyond workplace safety to encompass environmental and public health issues.ASEA is managed by a Chief Executive Officer (CEO) and supported by the Asbestos Safety and Eradication Council. The council has nine members and a chair, and the CEO of ASEA participates in council meetings. One position on the council is reserved for an Australian Government representative and four positions reserved for a state, territory or local government representative.ASEA and the council work to coordinate the National Strategic Plan for Asbestos Management and Awareness (NSP) which aims to prevent exposure to asbestos fibres in order to eliminate asbestos-related disease in Australia. The NSP establishes a five year framework for this work. ASEA is also responsible for the administration of the National Asbestos Exposure Register as well as other broad functions including: reviewing and amending the NSP as required publishing and promoting the NSP providing advice to the Minister about asbestos safety liaising with Commonwealth, state, territory and local and other

governments, agencies or bodies about the implementation of the NSP; as well as asbestos safety in general

commissioning, monitoring and promoting research about asbestos safety.

65



The Agency Resource Statement details the resourcing for the Asbestos Safety and Eradication Agency at Budget Estimates. Table 1.1 outlines the total resourcing available from all sources for the 2015–16 Budget year.Table 1.1: Asbestos Safety and Eradication Agency Resource Statement—Budget Estimates for 2015–16 as at Budget May 2015

1 Appropriation Bill (No.1) 2014–152 Estimated adjusted balance carried forward from previous year3 Appropriation Bill (No.2) 2014–15Reader note: All figures are GST exclusive.

66

Actual Available


$'000



$'000


$'000



Departmental appropriationPrior year appropriations2 5,068 5,935 - 5,935 Departmental appropriation 4,914 - 3,264 3,264 Total 9,982 5,935 3,264 9,199

Total ordinary annual services [A] 9,982 5,935 3,264 9,199 Other services3

Departmental non-operatingPrior year appropriations2 - - - - Equity injections - - - - Total - - - -

Total other services [B] - - - - Total available annual appropriations [A+B] 9,982 5,935 3,264 9,199 Special appropriationsSpecial appropriations limited by criteria/entitlement - - - - Total special appropriations [C] - - - - Total appropriations excluding special accounts - - - - Special accounts

Opening balance - - - - Total special accounts [D] - - - - Total resourcing [A+B+C+D] 9,982 5,935 3,264 9,199

Less appropriations drawn from annual or special appropriations above and credited to special accounts - - - -

Total net resourcing for Asbestos Safety and Eradication Agency 9,982 5,935 3,264 9,199


1.3 BUDGET MEASURES

ASEA does not have any new measures since the 2014–15 Budget. For this reason Table 1.2 is not presented.

67




Government outcomes are the intended results, impacts or consequences of actions by the government on the Australian community. Commonwealth programmes are the primary vehicle by which government agencies achieve the intended results of their outcome statements. Agencies are required to identify the programmes which contribute to government outcomes over the Budget and forward years.Each outcome is described below together with its related programmes, specifying the performance indicators and targets used to assess and monitor the performance of ASEA in achieving government outcomes.Outcome 1: Assist in the prevention of exposure to asbestos fibres and the elimination of asbestos-related disease in Australia through implementing the National Strategic Plan for Asbestos Awareness and Management in Australia.

Outcome 1 StrategyThe Asbestos Safety and Eradication Agency works with the Australian Government, state, territory and local governments, and a wide range of stakeholders to coordinate the National Strategic Plan for Asbestos Awareness and Management (NSP), to: increase public awareness about the risks of asbestos including

how to identify and manage asbestos risks in the home increase evidence and share information to inform best practice

and practical strategies to inform safe management and targeted removal of asbestos to address long term risks

commission, monitor and promote research and information sharing about asbestos and the elimination of asbestos-related disease, including the management of the National Asbestos Exposure Register.

68


Outcome Expense Statement

Table 2.1 provides an overview of the total expenses for Outcome 1, by programme.Table 2.1: Budgeted Expenses for Outcome 1

1 Departmental appropriation combines 'Ordinary annual services (Appropriation Bill No. 1)' and 'Revenue from independent sources (s 74)'.Note: Departmental appropriation splits and totals are indicative estimates and may change in the course of the budget year as government priorities change.


Programme 1.1: Asbestos Safety and Eradication Agency

Programme Objective

The objective of the Asbestos Safety and Eradication Agency is to implement, review, publish and promote the National Strategic Plan for Asbestos Awareness and Management (NSP); coordinate and liaise with Australian Government, state, territory, local and other governments, agencies or bodies about asbestos safety and the implementation, review or amendment of the NSP; and commission and monitor and promote research about asbestos safety in Australia and internationally.To be able to meet its objectives, the agency works collaboratively with regulators, industry and agencies and bodies across the work environment, public health and building and construction sectors that work with asbestos and asbestos safety, and the community to achieve improved awareness of asbestos safety.

69

Outcome 1: Assist in the prevention of exposure to asbestos fibres and the elimination of asbestos-related disease in Australia through implementing the National Strategic Plan for Asbestos Awareness and Management in Australia

2014–15Estimated

actual expenses

$'000


$'000Programme 1.1: Asbestos Safety and Eradication AgencyDepartmental expenses

Departmental appropriation1 4,914 3,264 Total expenses for Outcome 1 4,914 3,264

2014–15 2015–16Average staffing level (number) 9 12


Programme Expenses

Table 2.1.1 Programme expenses

Programme 1.1 Deliverables

The deliverables for the Asbestos Safety and Eradication Agency are highlighted in the National Strategic Plan for Asbestos Awareness and Management and are structured under the following strategies:1. Awareness: Increase public awareness of the health risks posed by

working with or being exposed to asbestos.2. Best practice: Identify and share best practice in asbestos

management, education, handling, storage and disposal.3. Identification: Improve the identification and grading of asbestos

and sharing of information regarding the location of asbestos-containing materials (ACMs).

4. Removal: Identify priority areas where ACMs present a risk, the barriers to the safe removal of asbestos and review management and removal infrastructure to estimate the capacity and rate for the safe removal of asbestos.

5. Research: Commission, monitor and promote research into asbestos exposure pathways, prevention and asbestos-related diseases to inform policy options.

6. International leadership: Australia to continue to play a leadership role in a global campaign for a worldwide asbestos ban.

70

2014–15 Estimated

actual$'000

2015–16Budget

$'000


$'000


$'000


$'000Annual departmental expenses:

Annual Appropriation 4,914 3,264 2,614 2,633 1,665



Programme 1.1 Key Performance Indicators

The key performance indicators are framed around the strategies the agency has put in place to achieve its outcome and the strategies contained within the National Strategic Plan for Asbestos Awareness and Management. Table 2.1.1.A Programme 1.1 Key performance indicators Key performance indicator

2015–16 Target

Increase public awareness about asbestos safety

Increasing trend in asbestos awareness Increase in utilisation of agency

information and resourcesEffectively coordinate national issues that relate to the plan and asbestos issues

Survey of Asbestos Safety and Eradication Council, and committees agree the agency effectively engages with stakeholders

Progress report on NSP demonstrates coordination of national initiatives

Identify targeted and practical initiatives to reduce the risks of asbestos-related disease in Australia.

Identified initiatives demonstrate reduction in asbestos exposure risks

71


Section 3: Explanatory Tables and Budgeted Financial Statements

Section 3 presents explanatory tables and budgeted financial statements which provide a comprehensive snapshot of entity finances for the 2015–16 budget year. It explains how budget plans are incorporated into the financial statements and provides further details of the reconciliation between appropriations and programme expenses, movements in administered funds, special accounts and government indigenous expenditure.


3.1.1 Movement of Administered Funds Between YearsASEA has no movement of administered funds. For this reason Table 3.1.1 is not presented.3.1.2 Special AccountsASEA has no special accounts. For this reason Table 3.1.2 is not presented.3.1.3 Australian Government Indigenous expenditureASEA has no Australian Government Indigenous expenditure. For this reasonTable 3.1.3 is not presented.

72



3.2.1 Differences in Agency Resourcing and Financial Statements3.2.2 Analysis of Budgeted Financial StatementsThe Asbestos Safety and Eradication Agency is budgeting for a zero operating result in 2015–16 and the three forward years.Total revenue is estimated to be $3.3 million in 2015–16, and total expenses to be $3.3 million.Total assets for 2015–16 are estimated to be $6 million. The majority of assets represent appropriations receivables and property, plant and equipment.Total liabilities for 2015–16 are estimated to be $2.3 million. The largest liabilities are accrued employee entitlements.

73


3.2.3 Budgeted Financial Statements TablesTable 3.2.1 Comprehensive income statement (showing net cost of services) for the period ended 30 June


74

2014–15 Estimated

actual$'000

2015–16Budget

$'000


$'000


$'000


$'000EXPENSESEmployee benefits 1,281 1,250 1,244 1,256 1,256 Suppliers 3,633 2,014 1,370 1,377 409 Total expenses 4,914 3,264 2,614 2,633 1,665 LESS: OWN-SOURCE INCOMEOw n-source revenueOther revenue - - - - - Total own-source revenue - - - - - GainsOther gains - - - - - Total gains - - - - - Total own-source income - - - - - Net cost of/(contribution by) services 4,914 3,264 2,614 2,633 1,665 Revenue from Government 4,914 3,264 2,614 2,633 1,665

Surplus/(deficit) attributable to the Australian Government - - - - - OTHER COMPREHENSIVE INCOMEChanges in asset revaluation surplus - - - - - Total other comprehensive income - - - - - Total comprehensive income/(loss) - - - - - Total comprehensive income/(loss) attributable to the Australian Government - - - - -



* 'Equity' is the residual interest in assets after deduction of liabilities. Prepared on Australian Accounting Standards basis.

75

2014–15 Estimated

actual$'000

2015–16Budget

$'000


$'000


$'000



Cash and cash equivalents 846 846 846 846 846Trade and other receivables 5,089 5,112 5,131 5,151 5,151


Property, plant and equipment - - 59 119 179Total non-financial assets - - 59 119 179

Assets held for sale - - - - - Total assets 5,935 5,958 6,036 6,116 6,176 LIABILITIESPayables

Other payables 2,198 2,198 2,198 2,198 2,198Total payables 2,198 2,198 2,198 2,198 2,198 Provisions

Employee provisions 48 71 90 110 110Total provisions 48 71 90 110 110 Total liabilities 2,246 2,269 2,288 2,308 2,308 Net assets 3,689 3,689 3,748 3,808 3,868 EQUITY*Parent entity interest

Contributed equity 183 183 242 302 362 Retained surplus (accumulated deficit) 3,506 3,506 3,506 3,506 3,506



Table 3.2.3: Departmental statement of changes in equity—summary ofmovement (Budget Year 2015–16)


76

Retained earnings

$'000

Asset revaluation

reserve$'000


Total equity

$'000Opening balance as at 1 July 2015

Balance carried forw ard from previous period 3,506 - 183 3,689 Adjustment for changes in accounting policies - - - -

Adjusted opening balance 3,506 - 183 3,689 Comprehensive income

Other comprehensive income - - - - Surplus/(deficit) for the period - - - -

Total comprehensive income - - - - of w hich:

Attributable to the Australian Government

- - - -

Transactions w ith ownersContributions by owners

Equity Injection - Appropriation - - - - Departmental Capital Budget (DCB) - - - -

Sub-total transactions with owners - - - - Transfers betw een equity components - - - -

Estimated closing balance as at 30 June 2016 3,506 - 183 3,689

Less: non-controlling interests - - - - Closing balance attributable to the Australian Government 3,506 - 183 3,689



77

2014–15 Estimated

actual$'000

2015–16Budget

$'000


$'000


$'000



Appropriations 4,892 3,241 2,595 2,613 1,665Sale of goods and rendering of services - - - - -

Total cash received 4,892 3,241 2,595 2,613 1,665Cash used

Employees 1,259 1,227 1,225 1,236 1,256Suppliers 3,633 2,014 1,370 1,377 409

Total cash used 4,892 3,241 2,595 2,613 1,665Net cash from/(used by) operating activities - - - - -INVESTING ACTIVITIESCash received


Total cash received - - - - -Cash used

Purchase of property, plant and equipment - - 59 60 60Other - - - - -

Total cash used - - 59 60 60Net cash from/(used by) investing activities - - (59) (60) (60)




78

2014–15 Estimated

actual$'000

2015–16Budget

$'000


$'000


$'000



Contributed equity - - 59 60 60 Total cash received - - 59 60 60 Cash used

Other - - - - - Total cash used - - - - - Net cash from/(used by) financing activities - - 59 60 60 Net increase/(decrease) in cash held - - - - -

Cash and cash equivalents at the beginning of the reporting period 846 846 846 846 846

Cash and cash equivalents at the end of the reporting period 846 846 846 846 846



1 Includes both current Bill 2 and prior Act 2/4/6 appropriations and special capital appropriations.2 Does not include annual finance lease costs. Includes purchases from current and previous years' Departmental Capital Budgets (DCBs).Prepared on Australian Accounting Standards basis.

79

2014–15 Estimated

actual$'000

2015–16Budget

$'000


$'000


$'000



Capital budget - Bill 1 (DCB) - - 59 60 60Equity injections - Bill 2 - - - - -

Total new capital appropriations - - 59 60 60Provided for:

Purchase of non-financial assets - - 59 60 60Total Items - - 59 60 60

PURCHASE OF NON-FINANCIAL ASSETS

Funded by capital appropriations1 - - - - -Funded by capital appropriation - DCB2 - - 59 60 60

TOTAL - - 59 60 60RECONCILIATION OF CASH USED TO ACQUIRE ASSETS TO ASSET MOVEMENT TABLETotal purchases - - 59 60 60Total cash used to acquire assets - - 59 60 60


Table 3.2.6: Statement of asset movements (2015–16)ASEA has no statement of asset movements. For that reason Table 3.2.6 is not presented.Table 3.2.7: Schedule of budgeted income and expenses administered on behalf of Government (for the period ended 30 June)ASEA has no income and expenses administered on behalf of government. For this reason Table 3.2.7 is not presented.Table 3.2.8 Schedule of budgeted assets and liabilities administered on behalf of Government (as at 30 June)ASEA has no administered assets and liabilities. For this reason Table 3.2.8 is not presented.Table 3.2.9: Schedule of budgeted administered cash flows (for the period ended 30 June)ASEA has no administered cash flows. For this reason Table 3.2.9 is not presented.3.2.10 Administered capital budget statement (for the period ended 30 June)ASEA has no administered capital purchases. For this reason Table 3.2.10 is not presented.3.2.11 Statement of administered asset movements (Budget year 2015–16)ASEA has no administered non-financial assets. For this reason Table 3.2.11 is not presented.

80

Comcare, the Safety Rehabilitation and

Compensation Commission, and the

Seafarers Safety, Rehabilitation and

Compensation Authority


COMCARE, THE SAFETY, REHABILITATION AND COMPENSATION COMMISSION, AND THE

SEAFARERS SAFETY, REHABILITATION AND COMPENSATION AUTHORITY



Section 3: Explanatory tables and budgeted financial statements......................1033.1 Explanatory tables.......................................................................................1033.2 Budgeted financial statements.....................................................................105

83

Comcare Budget Statements 2015–16

COMCARE, THE SAFETY, REHABILITATION AND COMPENSATION COMMISSION, AND THE SEAFARERS SAFETY, REHABILITATION AND

COMPENSATION AUTHORITY



Comcare supports participation and productivity by working with employers and employees to keep workers healthy and safe by minimising harm in the workplaces it covers.In addition to its claims management and regulatory responsibilities, Comcare manages Commonwealth common law liabilities for asbestos compensation. The agency also provides secretariat and related functions to support the Safety, Rehabilitation and Compensation Commission (SRCC) and the Seafarers Safety, Rehabilitation and Compensation Authority (Seacare Authority).Comcare has consolidated its strategic functions into a single outcome: Supporting participation and productivity through healthy and safe

workplaces that minimise the impact of harm in workplaces covered by Comcare.

The outcome statement provides better strategic alignment of the insurance and regulatory functions and focuses on Comcare’s contribution in supporting productivity and participation. Comcare is ensuring that delivery of its strategic priorities, articulated through its Corporate Plan, will ensure Comcare continues to be an efficient and effective regulator, a cost effective insurer, and an adaptable organisation that shows leadership in identifying and delivering strategies to minimise harm in the workplace. Comcare’s strategic priorities in 2015–16 include: Work, health and safety leadership – developing a policy narrative

with a focus on productivity and participation, and influencing the workplace wellbeing dialogue through closer engagement with employers, employees, policy makers and researchers

Targeted regulation – maintaining a focus on harm prevention using a modern model of regulation

Leading insurer – delivering robust and transparent premium setting policies and engaging with employers to achieve better outcomes in claims management

85


Fresh approaches – generating and understanding business intelligence to guide better policy and operations

Successful business – ensuring Comcare’s capability supports the vision and obligations of the organisation.

Comcare will continue to: Work with employers to deliver best practice in rehabilitation and

compensation claims management to achieve early and safe return to work for workers covered by the Comcare scheme

Deliver education, assurance and enforcement to protect the health, safety and welfare of workers covered by the scheme

Provide access to compensation for people with asbestos-related diseases where the Commonwealth has a liability through management of claims.

Comcare’s strategic direction ensures that our priority actions are clear and in alignment with our strategic focus and ensure the coherence, capability and adaptability of the organisation going forward.

86



Table 1.1 shows the total resources from all sources. The table summarises how resources will be applied by outcome and by administered and departmental classification. Table 1.1: Comcare resource statement — Budget estimates for 2015–16 as at Budget May 2015

Comcare is not directly appropriated as it is a corporate Commonwealth entity. Appropriations are made to the Department of Employment which are then paid to Comcare and are considered 'departmental' for all purposes.1 Appropriation Bill (No.1) 2015–16.2 Outcome 2 and 3 have been consolidated into Outcome 1 from 1 July 2015.3 Grants from Portfolio Department includes special appropriations under the Safety, Rehabilitation and Compensation Act 1988 for the payment of pre-premium claims costs and the Asbestos-related Claims (Management of Commonwealth Liabilities) Act 2005 for asbestos-related claims settlements.All figures are GST exclusive.

87

Actual Available

Appropriation 2014–15

$'000



$'000


$'000


$'000Opening balance/Reserves at bank - 617,147 - 617,147 REVENUE FROM GOVERNMENTOrdinary annual services1

Outcome 1 2 2,189 - 7,727 7,466 Outcome 2 414 - - - Outcome 3 4,960 - - - Total ordinary annual services 7,563 - 7,727 7,466

Total funds from Government 7,563 - 7,727 7,466 FUNDS FROM INDUSTRY SOURCES

Licence fees 16,173 - 15,776 15,776 Total 16,173 - 15,776 15,776

FUNDS FROM OTHER SOURCESInterest 25,531 - 26,876 26,876 Sale of goods and services 1,797 - 1,001 1,001 Regulatory contributions 19,076 - 20,413 20,413 Grants from Portfolio Department3 72,956 - 69,726 69,726 Workers' compensation premiums 475,635 - 450,400 450,400 Total 594,995 - 568,416 568,416

Total net resourcing for Comcare 618,731 617,147 591,919 1,208,805


1.3 BUDGET MEASURES

Budget measures in Part 1 relating to Comcare are detailed in Budget Paper No. 2 and are summarised below. Table 1.2: Entity 2015–16 Budget measuresPart 1: Measures announced since the 2014–15 Mid-Year Economic and Fiscal Outlook (MYEFO)

Prepared on a Government Finance Statistics (fiscal) basis

88

Programme2014–15

$'0002015–16

$'0002016–17

$'0002017–18

$'0002018–19

$'000Expense measuresSimplifying Parliamentary Budgets 1.1

Departmental expenses - 261 209 210 212

Total - 261 209 210 212 Total expense measures

Departmental - 261 209 210 212

Total - 261 209 210 212




Government outcomes are the intended results, impacts or consequences of actions by the government on the Australian community. Commonwealth programmes are the primary vehicle by which government entities achieve the intended results of their outcome statements. Entities are required to identify the programmes which contribute to government outcomes over the Budget and forward years.Each outcome is described below together with its related programmes, specifying the performance indicators and targets used to assess and monitor the performance of Comcare in achieving government outcomes.Outcome and programme changesThe following figure shows the consolidation of the three outcomes in 2014–15 to a single outcome in 2015–16 and the changes in the programme components.

89


Figure 2 Changes to Comcare’s outcome structure2014–15 Financial yearOutcome 1: The protection of the health, safety and welfare at work of workers covered by the Comcare scheme through education, assurance and enforcement.

Outcome 2: An early and safe return to work and access to compensation for injured workers covered by the Comcare scheme through working in partnership with employers to create best practice in rehabilitation and quick and accurate management of workers’ compensation claims.

Outcome 3: Access to compensation for people with asbestos-related diseases where the Commonwealth has a liability, through management of claims.

Programme 1: Comcare

Programme 2: Comcare• Component 2.1—SRC Act

Regulation• Component 2.2—Management

of Premium Claims• Component 2.3—Management

ofPre-premium Claims

• Component 2.4—Provide support to the Seafarers Safety Rehabilitation and Compensation Authority

Programme 2: Comcare

2015–16 Financial yearOutcome 1: Support participation and productivity through healthy and safe workplaces that minimise the impact of harm in workplaces covered by Comcare.Programme 1: Comcare• Component 1.1—Work Health, Safety and Rehabilitation Regulation• Component 1.2—Comcare Workers’ Compensation Scheme Management• Component 1.3— Component 1.3—Safety, Rehabilitation and Compensation

Commission and Seafarers Safety, Rehabilitation and Compensation Authority Support

• Component 1.4—Premium Claims

90


• Component 1.5—Pre-premium Claims• Component 1.6—Asbestos Claims

91


Outcome 1: Support participation and productivity through healthy and safe workplaces that minimise the impact of harm in workplaces covered by Comcare.

Outcome 1 strategyComcare works with employers, employees and their representatives, state and territory bodies and other organisations to contribute to national goals in improving work health and safety and minimising the impact of harm in workplaces.It does this through: supporting employers, employees and other duty holders to create

and maintain healthy and safe workplaces through the regulation of work health, safety and rehabilitation in workplaces covered by Comcare

minimising the impact of harm in workplaces through effective and efficient management of the Comcare workers’ compensation scheme

improving the quality and effectiveness of compensation delivery, including improving return to work and health outcomes

maintaining the sustainability and accountability of the scheme supporting the SRCC and the Seacare Authority in their statutory

roles.In 2015–16, Comcare will continue to strengthen its position as a leader in work health and safety by identifying and communicating best practice, and promoting a broad understanding of our role and responsibilities.Effective work health and safety regulation remains a priority for Comcare. Regulatory activities will continue to be targeted and focussed on harm prevention, with annual campaigns focused on minimising the drivers of illness and injury in the Comcare Scheme. Comcare is committed to delivering regulation consistent with the Australian Government’s Regulator Performance Framework. Comcare engages in a national approach for scheme efficiency and sustainability and will strengthen cost recovery arrangements in order to increase transparency and accountability. To ensure improved return to work outcomes, Comcare will engage with employers and employees to support workers through a targeted approach using our Active Management Model and continuing work on the Health Benefits of Work initiative.Further measures that will support a collaborative culture and ensure a successful business into the future include ensuring all roles have a clear link to the delivery of Comcare’s outcome, effective management of strategic and operational risks and ensuring stronger alignment of corporate planning and budgeting.

92



Table 2.1 provides an overview of the total expenses for Outcome 1, by programme for 2015–16.Table 2.1: Budgeted expenses for Outcome 1

1 Figures for 2014–15 are aggregates of the previous three outcomes.2 This relates to non-cash movements in workers' compensation claims liabilities and asbestos-related claims liabilities.

93

Outcome 1: Support participation and productivity throughhealthy and safe w orkplaces that minimise the impact ofharm in w orkplaces covered by Comcare

2014–151

Estimated actual expenses

$'000


$'000Programme 1.1: Comcare Departmental Outcome 1Revenue from Government

Ordinary annual services (Appropriation Bill No. 1) 7,563 7,727 Grants received from portfolio department 72,956 69,726

Revenues from industry sources 16,173 15,776 Revenues from other independent sources 512,928 429,654 Revenues from other independent sources2 8,825 (10,014)

Total for Programme 1.1 618,445 512,869 Outcome 1 totals by resource typeRevenue from Government

Ordinary annual services (Appropriation Bill No. 1) 7,563 7,727 Grants received from portfolio department 72,956 69,726

Revenues from industry sources 16,173 15,776 Revenues from other independent sources 512,928 429,654 Revenues from other independent sources2 8,825 (10,014)Total expenses for Outcome 1 618,445 512,869

2014-15 2015-16Average staffing level (number) 610 652



Programme 1.1: Comcare Departmental Outcome 1

Programme objective

To promote healthy and safe workplaces and prevent harm in workplaces covered by Comcare through regulation of health, safety and rehabilitation.

To implement and maintain Comcare workers’ compensation scheme policies and guidance and report of scheme effectiveness.

To enable the SRCC management and regulation of self-insured licensees in the Comcare scheme under the Safety Rehabilitation and Compensation Act 1988 (SRC Act) and the Seacare Authority operations under the Seafarers Safety, Rehabilitation and Compensation Act 1992 (Seafarers Act) and relevant legislation.

To deliver timely and appropriate management of premium claims. To support stakeholders in achieving return to work and health

outcomes. To deliver value for money and financial sustainability across claim

management operations and services. To deliver timely and appropriate management of pre-premium

claims. To deliver timely and appropriate management of claims under the

Asbestos-Related Claims (Management of Commonwealth Liabilities) Act 2005 (ARC Act).

94


Programme expenses

Comcare is maintaining resourcing to match the government’s expectations about the level of regulatory intervention and the need to continue the positive trend in injury prevention.

The Special Appropriation under s90D of the SRC Act (Grants received from portfolio departments) relates to workers’ compensation claims that were accepted prior to the establishment of the Comcare premium scheme on 1 July 1989. The costs of these claims are funded from the Consolidated Revenue Fund.

Expenses for claims accepted since 1 July 1989 are funded from premium revenue paid to Comcare and do not require appropriation.


1 Figures for 2014-15 are aggregates of the previous three outcomes.2 This relates to non-cash movements in workers' compensation claims liabilities and asbestos-related claims liabilities.

95

2014–151

Estimated actual$'000

2015–16Budget

$'000


$'000


$'000



Annual Appropriation 7,563 7,727 6,194 6,235 6,279 Grants received from portfolio department 72,956 69,726 67,886 68,581 68,463 Expenses not requring appropriation in the Budget year 529,101 445,430 451,346 464,196 482,094 Expenses not requring appropriation in the Budget year2 8,825 (10,014) (6,854) (7,208) (6,374)



Programme components

Component 1.1—Work Health, Safety and Rehabilitation Regulation Component 1.2—Comcare Workers’ Compensation Scheme

Management Component 1.3—SRCC and Seacare Authority Support Component 1.4—Premium Claims Component 1.5—Pre-premium Claims Component 1.6—Asbestos Claims

96


Table 2.2 Programme components

1 2014–15 expenses for components 1.1, 1.2 and 1.3 have been reclassified to align with the new programme components in 2015–16.


Component 1.1 – Work Health, Safety and Rehabilitation Regulation 97

2014–151

Estimated actual$'000

2015–16Budget

$'000


$'000


$'000


$'0001.1 - Work Health, Safety and Rehabilitation Regulation

Annual departmental expenses:Annual Appropriation 2,189 2,164 746 751 755

Expenses not requiring appropriation in the Budget year 27,319 26,887 27,119 27,633 27,752

Total component expenses 29,508 29,051 27,865 28,384 28,507 1.2 - Comcare Workers' CompensationScheme Management


Total component expenses 8,509 8,376 7,228 7,344 7,377 1.3 - SRCC and Seacare Authority Support

Annual departmental expenses:Annual Appropriation 414 388 365 368 371


Total component expenses 4,526 4,455 4,275 4,298 4,317 1.4 - Premium claims

Annual departmental expenses:Annual Appropriation - 261 209 210 212


Total component expenses 527,042 435,396 442,899 455,678 473,998 1.5 - Pre-premium claims

Grants received from portfoliodepartment 50,069 36,515 35,312 34,109 32,614 Expenses not requiring appropriation in the Budget year (31,970) (32,762) (30,728) (28,580) (26,095)

Total component expenses 18,099 3,753 4,584 5,529 6,519 1.6 - Asbestos claims

Annual departmental expenses:Annual Appropriation 4,960 4,914 4,874 4,906 4,941

Grants received from portfoliodepartment 22,887 33,211 32,574 34,472 35,849 Expenses not requiring appropriation in the Budget year 2,914 (6,287) (5,727) (8,807) (11,046)

Total component expenses 30,761 31,838 31,721 30,571 29,744



Perform the functions of the regulator under the Work Health and Safety Act (Cth) 2012 (WHS Act).

Perform the rehabilitation regulatory functions set out in the SRC Act.

Contribute to the delivery of the Australian Work Health and Safety Strategy 2012–2022.

Component 1.2 – Comcare Workers’ Compensation Scheme Management Perform the scheme management functions set out in the SRC Act. Co-operate with other bodies or persons with the aim of reducing

the incidence of injury to employees. Research and promote the adoption of effective strategies and

procedures for the rehabilitation of injured workers pursuant to the SRC Act.

Component 1.3 – SRCC and Seacare Authority Support Provide the SRCC with such secretarial and other assistance, and

make available to it the services of such members of Comcare’s staff and such other resources, as the SRCC reasonably requires from time to time for the proper performance of its functions or exercise of its powers.

Provide the Seacare Authority such secretarial and other assistance, and make available to it the services of such members of Comcare’s staff and such other resources as the Seacare Authority reasonably requires from time to time for the proper performance of its functions or exercise of its powers.

Component 1.4 – Premium Claims Deliver a better practice compensation model. Enhance effective partnerships with employers. Influence rehabilitation and clinical stakeholders. Influence, prepare for and respond to legislative change. Identify and address opportunities for improved performance. Deliver a premium model that is robust, transparent and

contemporary.

98


Component 1.5 – Pre-premium Claims Deliver a better practice compensation model. Identify and address opportunities for improved performance. Component 1.6 – Asbestos Claims Deliver a better practice compensation model. Identify and address opportunities for improved performance.

Programme 1.1 Key performance indicators The key performance indicators for this outcome are in Tables 2.2.A to 2.2.G.Table 2.2.A Component 1.1 – Work Health Safety and Rehabilitation RegulationKey performance indicators

2014–15

Revised

budget

2015–16

Budget

2016–17

Forward

Estimate

2017–18

Forward

Estimate

2018–19

Forward

Estimate

Achievement of the Australian Work Health and Safety Strategy 2012–2020 targets and initiatives

Yes Yes Yes Yes Yes

Compliance with the Nationally Consistent Approval Framework for Workplace Rehabilitation Providers by workplace rehabilitation programme providers approved by Comcare

Yes Yes Yes Yes Yes

Achievement of Regulator Performance Framework requirements

Yes Yes Yes Yes Yes

99


Table 2.2.B Component 1.2 Comcare Workers’ Compensation Scheme ManagementKey performance indicators

2014–15

Revised

budget

2015–16

Budget

2016–17

Forward

Estimate

2017–18

Forward

Estimate

2018–19

Forward

Estimate

Returned to Work across scheme participants(i.e. the proportion of injured workers with 10 or more days off work, who returned to work for any period of time at some stage since they had their first day off work)

90% 90% 90% 90% 90%

Current Return to Work (CRTW) (i.e. the percentage of injured workers with 10 or more days off work, who had submitted a claim 7–9 months prior to the survey, and who are working in a paid job at the time of the survey)

90% 90% 90% 90% 90%

Employer satisfaction with scheme management

N/A 90% 90% 90% 90%

Table 2.2.C Component 1.3 SRCC and Seacare Authority SupportKey performance indicators

2014–15

Revised

budget

2015–16

Budget

2016–17

Forward

Estimate

2017–18

Forward

Estimate

2018–19

Forward

Estimate

SRCC satisfaction with support provided by Comcare

Satisfied

Satisfied

Satisfied Satisfied

Satisfied

100


Key performance indicators

2014–15

Revised

budget

2015–16

Budget

2016–17

Forward

Estimate

2017–18

Forward

Estimate

2018–19

Forward

Estimate

Seacare Authority satisfaction of support provided by Comcare

Satisfied

Satisfied

Satisfied Satisfied

Satisfied

101


Table 2.2.D Component 1.4 – Premium claimsKey performance indicators

2014–15

Revised

budget

2015–16

Budget

2016–17

Forward

Estimate

2017–18

Forward

Estimate

2018–19

Forward

Estimate

Funding ratio (i.e. the percentage of premium-related total assets to premium-related liabilities )

71% 75% 79% 84% 88%

Commonwealth average premium rate

2.12% 2.04% 1.98% 1.93% 1.87%

Claims continuance rate (i.e. the percentage of claims with 4 weeks of incapacity that continued to 13 weeks or more of incapacity)

58% 57% 56% 55% 54%

Current return to work rate (i.e the percentage of injured workers from premium payers with 10 or more days off work, who had submitted a claim 7–9 months prior to the survey, and who are working in a paid job at the time of the survey)

90% 90% 90% 90% 90%

Injured worker satisfaction with recovery and support service

81% N/A N/A N/A N/A

Injured worker satisfaction with services as part of the Comcare index

N/A 85% 87% 90% 90%

102


Table 2.2.E Component 1.4 – Premium claims (continued)Key performance indicators

2014–15

Revised

budget

2015–16

Budget

2016–17

Forward

Estimate

2017–18

Forward

Estimate

2018–19

Forward

Estimate

Timeliness of claims determination (i.e. percentage of new claims determined within 20 calendar days for injury claims and 60 days for disease claims)

85% 100% 100% 100% 100%

Timeliness of determined claims payment (i.e. percentage of non-incapacity items paid or rejected within 7 calendar days for reimbursement to employees or trustees, and 28 calendar days for other payments)

90% 100% 100% 100% 100%

Table 2.2.F Component 1.5 Pre-premium claimsKey performance indicators

2014–15

Revised

budget

2015–16

Budget

2016–17

Forward

Estimate

2017–18

Forward

Estimate

2018–19

Forward

Estimate

Timeliness of determined claims payment (i.e. percentage of non-incapacity items paid or rejected within 7 calendar days for reimbursement to employees or trustees, and 28 calendar days for other payments)

90% 100% 100% 100% 100%

103


104


Table 2.2.G Component 1.6 Asbestos ClaimsKey performance indicators

2014–15

Revised

budget

2015–16

Budget

2016–17

Forward

Estimate

2017–18

Forward

Estimate

2018–19

Forward

Estimate

Timeliness of claims resolution (i.e. percentage of primary asbestos claims resolved within 180 calendar days)

65% 80% 80% 80% 80%

Third party recovery rate (i.e. percentage of the value of asbestos claims settlements recovered from third parties)

5% 10% 10% 10% 10%

105




3.1.1 Movement of administered funds between yearsComcare has no movement of administered funds to report. For this reason Table 3.1.1 is not presented.3.1.2 Special accountsSpecial accounts provide a means to set aside and record amounts used for specified purposes. Special accounts can be created by a Finance Minister’s determination under section 78 of the PGPA Act or under separate enabling legislation (section 80 of the PGPA Act refers). Table 3.1.2 shows the expected additions (receipts) and reductions (payments) for the special account for which the Seacare Authority is responsible.Table 3.1.2: Estimates of special account flows and balances

(A) = Administered.*In 2015–16 Comcare has streamlined its outcome structure to improve the alignment of its programmes in accordance with its vision and revised organisation structure. Previously the work associated with the Seafarers Rehabilitation and Compensation Account formed part of Outcome 2.

The Special Account was established for the purpose of providing a safety net under section 96 of the Seafarers Act for the compensation and rehabilitation of injured seafarers not otherwise covered by an employer.

106

Outcome Opening balance

$'000

Receipts

$'000

Payments

$'000

Adjustments

$'000

Closing balance

$'000

Seafarers Rehabilitation andCompensation Accounts78 PGPA Act (A) 1,304 132 (132) - 1,304

1,304 132 (132) - 1,304 Total special accounts2015–16 Budget estimate 1 1,304 132 (132) - 1,304

2* 1,304 132 (132) - 1,304


Transactions against this special account reflect: Levy collections from maritime operators; Expenses incurred in the administration of the Seafarers Safety Net

fund and claim payments (if any).3.1.3 Australian Government Indigenous expenditureComcare has no Australian Government Indigenous expenditure to report. For this reason Table 3.1.3 is not presented.

107



3.2.1 Differences in entity resourcing and financial statementsThe difference between the available resources shown in Table 1.1: Comcare resource statement and Table 3.2.1: Comprehensive Income Statement is due to prior year amounts available in 2015–16. The prior year amounts relate to retained premium funds, which are held to discharge future premium claims liabilities. Table 3.2.2: Budgeted Departmental Balance Sheet also includes significant financial assets (appropriations receivable) which will fund claim payments over the lifetime of the outstanding claims liabilities.3.2.2 Analysis of budgeted financial statementsIncomeComcare’s total income in 2015–16 is budgeted at $581.9 million, compared to $627.6 million in 2014–15 (a decrease of $45.7 million).Revenue from independent sources, which excludes annual appropriations and other cash and non-cash appropriations received from the portfolio department, is budgeted at $514.5 million (refer to table below).Table 3.2.2.A Revenue from independent sources

The decrease in revenue is mainly due to expected reduction in premium revenue. The key factors contributing to a lower level of premium in 2015–16 include a notable reduction in employee numbers and a lower additional margin in response to improved funding ratio of the scheme.ExpensesComcare’s total expenses in 2015–16 are budgeted at $512.9 million, compared to $618.4 million in 2014–15 (a decrease of $105.6 million).Claims expenses are budgeted to decrease by $103.9 million based on projections provided by independent actuarial assessment. While benefits payments is expected to increase by $18.8 million, movement in outstanding claims liabilities is expected to be significantly less in 2015–16 ($65.0 million in 2015–16 compared to $187.7 million in

108

2014–15Estimated actual

$'000

2015–16Budget estimate

$'000Workers' compensation premium 475,635 450,400Licence fees 16,173 15,776Regulatory contributions 19,076 20,413Interest 25,531 26,876Sales of goods and rendering of services 1,797 1,001Total 538,212 514,466


2014–15). Movement in outstanding claims liabilities for 2014–15 has been revised to reflect a significant increase in claims provisions due primarily to unfavourable economic assumptions in valuing long term liabilities. This increases the claims expenses in 2014–15 despite the fact that outstanding claims liabilities before economic adjustments have been reducing in the past two years. Economic assumptions used in the 2015–16 budget represent less volatile economic conditions in the next financial year.Comcare’s administration expenses are budgeted to reduce in 2015–16 by $1.6 million (i.e. from $111.8 million to $110.2 million), reflecting Comcare’s ongoing commitment to improve administration efficiency. Operating ResultComcare’s operating result in 2015–16 is budgeted at a surplus of $69.0 million. This, along with budgeted surpluses over forward years will contribute to restoring the premium scheme’s financial health.Comcare’s expected operating result in 2014-15 has reduced significantly since the publishing of the 2014–15 Portfolio Budget Statements. This is in line with the mid-year valuation of outstanding claims liabilities by Comcare’s independent actuaries and is mainly due to unfavourable movements in economic assumptions used in the valuation of long term liabilities. It is important to note, however, that the final operating result is subject to a further assessment of the outstanding claims liabilities as at 30 June 2015.Claims LiabilityComcare has three separate claims liabilities: Premium workers’ compensation claims—these relate to workers’

compensation claims from premium paying agencies with a date of injury on or after 1 July 1989.

Pre-premium workers’ compensation claims—these relate to workers’ compensation claims with a date of injury before 1 July 1989. It is expected that pre-premium claims liabilities will decrease over time as claims are settled.

Asbestos-related common law liabilities—these relate to asbestos related claims where the Commonwealth has a liability.

In the 2015–16 Portfolio Budget Statements, all claims liability provisions are based on independent actuarial valuations on the basis of the central estimate plus a risk margin that would achieve a 75 per cent probability of sufficiency.

109


Estimates for gross claims liabilities as at 30 June each year are outlined in the table below.Table 3.2.2.B Estimates for gross claims liabilities as at 30 June each year

110

2014–15 2015–16 2016–17 2017–18 2018–19$'000 $'000 $'000 $'000 $'000

Workers' compensation liabilitiesPremium 2,968,623 3,072,470 3,176,769 3,281,633 3,391,808Pre-premium 389,737 356,967 326,231 297,642 271,539Asbestos related - common law 979,860 972,720 966,280 956,480 944,300



1 This relates to non-cash movements in workers' compensation claims liabilities andasbestos-related claims liabilities.Prepared on Australian Accounting Standards basis.

111

2014–15 Estimated

actual$'000

2015–16Budget

$'000


$'000


$'000


$'000EXPENSESEmployee benefits 70,347 69,516 64,435 64,741 65,520 Suppliers 33,700 33,563 31,433 31,931 32,297 Depreciation and amortisation 7,765 7,071 7,071 7,071 7,071 Claims payments 318,889 337,716 347,810 360,719 372,675 Claims - Movement in liabilities 187,744 65,003 67,823 67,342 72,899 Total expenses 618,445 512,869 518,572 531,804 550,462 LESS: OWN-SOURCE INCOMEOwn-source revenueSale of goods and rendering of services 1,797 1,001 1,018 1,035 1,053 Licence fees 16,173 15,776 16,045 16,317 16,595 Regulatory contributions 19,076 20,413 20,760 21,113 21,471 Interest 25,531 26,877 30,606 35,015 39,553 Grants received from portfolio

department 72,956 69,726 67,886 68,581 68,463 Workers' compensation premium 475,635 450,400 461,000 471,500 482,300 Other non-tax revenue1 8,825 (10,014) (6,854) (7,208) (6,374)Total ow n-source revenue 619,993 574,179 590,461 606,353 623,061 Net cost of/(contribution by) services (1,548) (61,310) (71,889) (74,549) (72,599)Revenue from Government 7,563 7,727 6,194 6,235 6,279 Surplus/(deficit) attributable to the Australian Government 9,111 69,037 78,083 80,784 78,878 OTHER COMPREHENSIVE INCOMEChanges in asset revaluation surplus - - - - - Total other comprehensive income - - - - - Total comprehensive income/(loss) 9,111 69,037 78,083 80,784 78,878 Total comprehensive income/(loss) attributable to the Australian Government 9,111 69,037 78,083 80,784 78,878




112

2014–15 Estimated

actual$'000

2015–16Budget

$'000


$'000


$'000



Cash and cash equivalents 617,147 765,588 913,435 1,065,761 1,231,021Trade and other receivables 2,862,325 2,847,291 2,837,831 2,827,742 2,820,361Other f inancial assets 8,174 8,174 8,174 8,174 8,174

Total financial assets 3,487,646 3,621,053 3,759,440 3,901,677 4,059,556 Non-financial assets

Property, plant and equipment 13,112 13,771 23,980 27,509 22,138Intangibles 7,713 4,083 103 903 503Other non-f inancial assets 1,221 1,221 1,221 1,221 1,221

Total non-financial assets 22,046 19,075 25,304 29,633 23,862 Total assets 3,509,692 3,640,128 3,784,744 3,931,310 4,083,418 LIABILITIESPayables



Employee provisions 16,925 16,465 17,781 19,102 20,440Other provisions 4,342,044 4,403,903 4,469,120 4,533,581 4,605,473

Total provisions 4,358,969 4,420,368 4,486,901 4,552,683 4,625,913 Total liabilities 4,374,786 4,436,185 4,502,718 4,568,500 4,641,730 Net assets (865,094) (796,057) (717,974) (637,190) (558,312)EQUITYParent entity interest

Contributed equity 7,717 7,717 7,717 7,717 7,717 Retained surplus (accumulated def icit) (872,811) (803,774) (725,691) (644,907) (566,029)

Total parent entity interest (865,094) (796,057) (717,974) (637,190) (558,312)Total Equity (865,094) (796,057) (717,974) (637,190) (558,312)




113

Retained earnings

$'000

Asset revaluation

reserve$'000

Other reserves

$'000


Total equity

$'000

Opening balance as at 1 July 2015Balance carried forw ard from previous period (872,811) - - 7,717 (865,094)Adjustment for changes in accounting policies - - - - -

Adjusted opening balance (872,811) - - 7,717 (865,094)Comprehensive income

Surplus/(deficit) for the period 69,037 - - - 69,037 Total comprehensive income 69,037 - - - 69,037 Estimated closing balance as at30 June 2016 (803,774) - - 7,717 (796,057)

Less: non-controlling interests - - - - - Closing balance attributable to the Australian Government (803,774) - - 7,717 (796,057)




114

2014–15 Estimated

actual$'000

2015–16Budget

$'000


$'000


$'000



Appropriations 7,563 7,727 6,194 6,235 6,279 Sale of goods and rendering of services 37,046 37,190 37,821 38,466 39,119 Interest 25,531 26,876 30,606 35,015 39,553 Grants received from portfolio

department 72,956 69,726 67,886 68,581 68,465 Other 475,635 450,400 461,000 471,500 482,299


Employees 68,908 68,099 63,122 63,424 64,183 Suppliers 33,703 33,563 31,428 31,928 31,297 Net GST paid 1 - - - - Other 318,889 337,716 347,810 360,719 372,675

Total cash used 421,501 439,378 442,360 456,071 469,155 Net cash from/(used by) operating activities 197,230 152,541 161,147 163,726 166,560 INVESTING ACTIVITIESCash used



Cash and cash equivalents at the beginning of the reporting period 422,317 617,147 765,588 913,435 1,065,761

Cash and cash equivalents at the end of the reporting period 617,147 765,588 913,435 1,065,761 1,231,021




115

2014–15 Estimated

actual$'000

2015–16Budget

$'000


$'000


$'000


$'000PURCHASE OF NON-FINANCIAL ASSETS

Funded internally from departmental resources 2,400 4,100 13,300 11,400 1,300

TOTAL 2,400 4,100 13,300 11,400 1,300 RECONCILIATION OF CASH USED TO ACQUIRE ASSETS TO ASSET MOVEMENT TABLETotal purchases 2,400 4,100 13,300 11,400 1,300





116


equipment$'000

Computer software and intangibles

$'000

Total

$'000

As at 1 J uly 2015Gross book value 32,824 19,810 52,634 Accumulated depreciation/amortisation and impairment (19,712) (12,097) (31,809)

Opening net book balance 13,112 7,713 20,825 Capital asset additions

Estimated expenditure on new or replacement assetsBy purchase 4,100 - 4,100 Total additions 4,100 - 4,100 Other movementsDepreciation/amortisation expense (3,441) (3,630) (7,071)Total other movements (3,441) (3,630) (7,071)

As at 30 J une 2016Gross book value 36,924 19,810 56,734 Accumulated depreciation/amortisation and impairment (23,153) (15,727) (38,880)

Closing net book balance 13,771 4,083 17,854




117

2014–15 Estimated

actual$'000

2015–16Budget

$'000


$'000


$'000


$'000EXPENSES

Suppliers 132 132 132 132 132 Total expenses administered on behalf of Government 132 132 132 132 132 LESS:OWN-SOURCE INCOMEOwn-source revenueTaxation revenue

Other revenue 132 132 132 132 132 Total ow n-source revenue administered on behalf of Government 132 132 132 132 132 Net cost of/(contribution by) services - - - - - Surplus/(deficit) - - - - - Total comprehensive income/(loss) - - - - -




118

2014–15 Estimated

actual$'000

2015–16Budget

$'000


$'000


$'000



Taxation receivables 11 11 11 11 11 Trade and other receivables 1,304 1,304 1,304 1,304 1,304

Total financial assets 1,315 1,315 1,315 1,315 1,315 Total assets administered on behalf of Government 1,315 1,315 1,315 1,315 1,315 LIABILITIESPayables

Other payables 111 111 111 111 111 Total payables 111 111 111 111 111 Total liabilities administered on behalf of Government 111 111 111 111 111 Net assets/(liabilities) 1,204 1,204 1,204 1,204 1,204




Table 3.2.10: Administered capital budget statement (for the period ended 30 June)Comcare has no administered capital purchases. For this reason Table 3.2.10 is not presented.Table 3.2.11: Statement of administered asset movements (Budget year 2015–16)Comcare has no administered non-financial assets. For this reason Table 3.2.11 is not presented.

119

2014–15 Estimated

actual$'000

2015–16Budget

$'000


$'000


$'000



Other 132 132 132 132 132 Total cash received 132 132 132 132 132 Cash used

Other 132 132 132 132 132 Total cash used 132 132 132 132 132 Net cash from/(used by) operating activities - - - - - Net increase/(decrease) in cash held - - - - -

Cash and cash equivalents at beginning of reporting period - - - - -

Cash from Official Public Account for:- Special accounts 132 132 132 132 132

Total cash from Official Public 132 132 132 132 132 Cash to Off icial Public Account for:

- Special accounts 132 132 132 132 132 - Transfers to other entities - - - - -

Total cash to Off icial Public Account 132 132 132 132 132 Cash and cash equivalents at end of reporting period - - - - -


3.2.4 Notes to the financial statements

Accounting policy

The budgeted financial statements have been prepared in accordance with the requirements of the Finance Minister’s Orders issued by the Minister for Finance. The statements have been prepared: on an accrual accounting basis in compliance with Australian Accounting Standards and Australian

Equivalents to International Financial Reporting Standards (AEIFRS) and other authoritative pronouncements of the Australian Accounting Standards Boards and the Consensus Views of the Urgent Issues Group

having regard to Statements of Accounting Concepts.

Entity items

Entity assets, liabilities, revenues and expenses are those items that are controlled by Comcare.Administered assets, liabilities, revenues and expenses relate to the Seafarers’ Safety, Rehabilitation and Compensation Authority (Seafarers Authority) which collects levies under the Seafarers Rehabilitation and Compensation Levy Collection Act 1992. The Seafarers Authority is controlled by the Government and managed by Comcare. Comprehensive Income Statement

Revenue from government

Comcare receives an annual appropriation for the management of asbestos- related claims, the administration of the Seacare Authority and some of Comcare’s regulatory activities.

Own source revenue

Comcare receives the following own-source revenue: workers’ compensation premiums grants received from portfolio department other non-tax revenue licence fees regulatory contributions interest

120


sale of goods and rendering of services.

Workers’ compensation premiums

The premium scheme covers employees of Commonwealth Government agencies and the ACT Government covered by the SRC Act for injuries and illnesses sustained on or after 1 July 1989. Premiums are determined to fully fund the expected scheme liabilities as advised by independent actuaries.Premiums do not cover liabilities for injuries or illness sustained prior to 1 July 1989. These liabilities are funded by Parliamentary appropriation and are referred to as ‘pre-premium’ liabilities.

Grants received from portfolio department

‘Grants received from portfolio department’ represent cash appropriation for the payment of pre-premium claims and administration costs, and asbestos claims costs.

Other non-tax revenue

‘Other non-tax revenue’ is a non-cash appropriation representing: the notional interest on retained premium funds held with the

Australian Government the movement in claims liabilities payable in future years based on

independent actuarial assessment.

Administration expenses

Comcare administration expenses include: employee expenses—includes salaries, superannuation and the net

increase in employee entitlements suppliers—includes goods and services procured from suppliers depreciation and amortisation—property, plant and equipment and

intangible assets are depreciated over their useful lives. Leasehold improvements are amortised over the lesser of the estimated useful life of the improvement or the unexpired period of the lease. In all cases, assets are depreciated using the straight line method.

121


Claims expenses

Comcare recognises two types of claims expenses:1. Claims payments—includes workers’ compensation claims

payments (premium and pre-premium) and common law settlements for asbestos-related compensation cases.

2. Movement in liabilities—net movements in outstanding workers’ compensation claims liabilities are recognised as expenses.

Departmental Balance Sheet

Cash and cash equivalents

Cash and cash equivalents include deposits at call and term deposits with a bank or financial institution.

Trade and other receivables

Other receivables are the combined value of: pre-premium and asbestos special appropriation receivable premiums collected by Comcare prior to 1 July 2002 held by the

Australian Government plus earned notional interest, in accordance with Section 90C of the SRC Act.

Employee provisions

The provision for employee entitlements encompasses unpaid annual and long service leave. No provision is made for sick leave.

Other provisions

Provision is made for: outstanding workers’ compensation claims liabilities asbestos-related common law liabilities.

These estimates have been prepared by independent actuaries. They are based on analysis of the historical development of the relevant claims experience, with allowances for future claim escalation and administration expenses, and are discounted to a present value to allow for the time value of money. The estimates of outstanding liabilities have been based on independent actuarial valuations on the basis of the central estimate plus the risk margin that would achieve a 75 per cent probability of sufficiency.

122

Fair Work Commission


FAIR WORK COMMISSION

Section 1: Entity overview and resources.............................................................1251.1 Strategic direction statement........................................................................1251.2 Entity resource statement............................................................................1261.3 Budget measures.........................................................................................128

Section 2: Outcomes and planned performance...................................................1292.1 Outcomes and performance information......................................................129


123

FWC Budget Statements 2015–16

FAIR WORK COMMISSION



The Fair Work Commission was established by the Fair Work Act 2009 (FW Act). The Commission is the independent national workplace relations tribunal responsible for administering provisions of the FW Act. The Commission also has responsibilities in relation to the registration, recognition and accountability of unions and employer organisations under the Fair Work (Registered Organisations) Act 2009.The Road Safety Remuneration Act 2012 established the Road Safety Remuneration Tribunal; an independent national tribunal with functions relating to the road transport industry. The Road Safety Remuneration Tribunal is supported by staff of the Fair Work Commission.The Fair Work Commission consists of a President, Vice Presidents, Deputy Presidents, Commissioners and Expert Panel Members. The Fair Work Commission also has a General Manager and administrative staff.The Fair Work Commission has the power to make and vary awards, make minimum wage orders, approve agreements, resolve workplace and other disputes, determine unfair dismissal claims, deal with applications for orders to stop or prevent workplace bullying and make orders in relation to matters such as good faith bargaining and industrial action. The Fair Work Commission is implementing initiatives aimed at further improving fairness and access to justice; accountability; innovation and efficiency; and productivity and engagement with industry. These initiatives are set out in the publication Future Directions II, which is available on the Commission’s website (www.fwc.gov.au).

125



Table 1.1 shows the total resources from all sources. The table summarises how resources will be applied by outcome and by administered and departmental classification.Table 1.1: Fair Work Commission resource statement—Budget estimates for 2015–16 as at Budget May 2015

126

Actual Available


$'000



$'000


$'000



Departmental appropriationPrior year appropriations2 36,693 34,558 - 34,558 Departmental appropriation3 82,348 - 81,968 81,968 s74 Retained revenue receipts4 1,286 - 2,429 2,429 Total 120,327 34,558 84,397 118,955

Total ordinary annual services [A] 120,327 34,558 84,397 118,955 Departmental non- operating

Equity injections - - - - Total - - - -

Total other services [B] - - - - Total available annual appropriations [A+B] 120,327 34,558 84,397 118,955


Table 1.1: Fair Work Commission resource statement—Budget estimates for 2015–16 as at Budget May 2015 (continued)

1 Appropriation Bill (No.1) 2015-16.2 Estimated adjusted balance carried forward from previous year.3 Includes an amount of $2.418 million in 2015–16 for the Departmental Capital Budget (refer to Table 3.2.5 for further details). For accounting purposes this amount has been designated as 'contributions by owners'.4 Estimated Retained revenue receipts under section 74 of the PGPA Act.5 Repayments not provided for under other appropriations. Amounts received on or before 30 June 2014 were repaid under section 28 of the Financial Management and Accountability Act 1997. Reader note: All figures are GST exclusive.

127

Actual Available


$'000



$'000


$'000


$'000Special appropriationsSpecial appropriations limited by criteria/entitlement

Public Governance, Performance and Accountability Act 2013 - s77 5 500 - 500 500

Total special appropriations [C] 500 - 500 500 Total appropriations excluding special accounts - - - - Special accounts - - - - Total special accounts [D] - - - - Total resourcing [A+B+C+D] 120,827 34,558 84,897 119,455

Less appropriations drawn from annual or special appropriations above and credited to special accounts and/or payments to corporate entities through annual appropriations

- - - -

Total net resourcing for Fair Work Commission 120,827 34,558 84,897 119,455


1.3 BUDGET MEASURES

Budget measures relating to the Fair Work Commission are detailed in Budget Paper No. 2 and are summarised below.Table 1.2: Fair Work Commission 2015–16 Budget measuresPart 2: MYEFO measures not previously reported in a portfolio statement

Prepared on a Government Financial Statistics (fiscal) basis.

128

Programme2014–15

$'0002015–16

$'0002016–17

$'0002017–18

$'0002018–19

$'000Measures Communications and Public Affairs Savings 1.1

Departmental expenses (11) (21) (21) (22) (22) Total (11) (21) (21) (22) (22) Total measures

Departmental (11) (21) (21) (22) (22)

Total (11) (21) (21) (22) (22)




Government outcomes are the intended results, impacts or consequences of actions by the government on the Australian community. Commonwealth programmes are the primary vehicle by which government agencies achieve the intended results of their outcome statements. Agencies are required to identify the programmes which contribute to government outcomes over the Budget and forward years.Each outcome is described below together with its related programmes, specifying the performance indicators and targets used to assess and monitor the performance of the Fair Work Commission in achieving government outcomes.Outcome 1: Simple, fair and flexible workplace relations for employees and employers through the exercise of powers to set and vary minimum wages and modern awards, facilitate collective bargaining, approve agreements and deal with disputes.

Outcome 1 strategyThe Fair Work Commission has a single planned outcome.

Outcome expenses statement

Table 2.1 provides an overview of the total expenses for Outcome 1 by programme.

129


Table 2.1 Budgeted expenses for Outcome 1

1 Departmental appropriation combines 'Ordinary annual services (Appropriation Bill No. 1)' and 'Revenue from independent sources (s 74)'.2 Expenses not requiring appropriation in the Budget year are made up of depreciation expenses, amortisation expenses, and audit fees. Note: Departmental appropriation splits and totals are indicative estimates and may change in the course of the budget year as government priorities change.


Programme 1.1: Dispute resolution, minimum wage setting, orders and approval of agreements

Programme objective

To exercise powers under the Fair Work Act 2009: in accordance with the objects of the Act in a manner that is fair and just; is quick, informal and avoids

unnecessary technicalities; is open and transparent; and promotes harmonious and cooperative workplace relations.

To exercise powers under the Road Safety Remuneration Act 2012 in accordance with the objects of the Act.

Programme expenses

The functions of the Fair Work Commission and the Road Safety Remuneration Tribunal are prescribed by legislation. New and/or changed legislative requirements may impact forward year expenses.

130

Outcome 1: Simple, fair and flexible workplace relations for employees and employers through the exercise of pow ers to set and vary minimum w ages and modern awards, facilitate collective bargaining, approve agreements and deal w ith disputes

2014–15Estimated

actual expenses

$'000


$'000

Programme 1.1: Dispute resolution, minimum wage setting, orders and approval of agreementsDepartmental expenses

Departmental appropriation1 81,173 81,979 Expenses not requiring appropriation in the Budget year2 3,576 4,583

Total for programme 1.1 84,749 86,562 Outcome 1 Totals by appropriation typeDepartmental expenses

Departmental appropriation1 81,173 81,979 Expenses not requiring appropriation in the Budget year2 3,576 4,583 Total expenses for Outcome 1 84,749 86,562




1 Expenses not requiring appropriation in the Budget year are made up of depreciation expenses, amortisation expenses, and audit fees.

131

2014–15 Estimated

actual$'000

2015–16Budget

$'000


$'000


$'000



Departmental item 81,173 81,979 81,012 81,914 83,165 Expenses not requiring appropriation in the Budget year1 3,576 4,583 4,584 4,584 4,584




The deliverables for the Fair Work Commission are: dispute resolution determining unfair dismissal applications minimum wage decisions orders relating to industrial action processes relating to modern awards approval of agreements regulation of registered organisations dealing with workplace bullying applications. The deliverables for the Road Safety Remuneration Tribunal are: developing an annual work programme making road safety remuneration orders dispute resolution approval of road transport collective agreements conducting research into pay and conditions that could affect safety

in the road transport industry.Table 2.1.1.A Programme 1.1 Deliverables

132

Deliverables 2014–15 Estimated

actual$'000

2015–16Budget

$'000


$'000


$'000


$'000

Dispute resolution, minimum w age setting, orders and approval of agreements. 81,349 82,076 81,110 82,012 83,263


Programme 1.1 Key performance indicators

The key performance indicators for the Fair Work Commission are: Improve or maintain the time elapsed from lodging applications to

finalising conciliations in unfair dismissal applications. Annual wage review to be completed to enable an operative date of

1 July. Improve or maintain the time taken to list applications relating to

industrial action. Improve or maintain the agreement approval time. 95 per cent of financial reports required to be lodged by registered

organisations under the Fair Work (Registered Organisations) Act 2009 are assessed for compliance within 40 working days.

The key performance indicators for the Road Safety Remuneration Tribunal are: Road safety remuneration orders reviewed within 12 months of

expiry of any preceding order. An annual work programme is developed. Research developed and submissions obtained or received are

published on the website in a timely manner as appropriate.

133


Table 2.1.1.B Key performance indicators

Key performance indicators

2014–15

Revised

Budget

2015–16

Budget

2016–17

Forward

Estimate

2017–18

Forward

Estimate

2018–19

Forward

Estimate

Improve or maintain the time elapsed from lodging applications to finalising conciliations in unfair dismissal applications

34 Days 34 Days

34 Days 34 Days 34 Days

Annual wage review to be completed to enable an operative date of 1 July

By June 30

By June

30

By June 30

By June 30

By June 30

Improve or maintain the agreement approval time

32 Days 32 Days

32 Days 32 Days 32 Days

95 per cent of financial reports required to be lodged under the Fair Work (Registered Organisations) Act 2009 are assessed for compliance within 40 working days

95%/40 days

95%/40

days

95%/40 days

95%/40 days

95%/40 days

Road safety remuneration orders reviewed within 12 months of expiry of any preceding order

Within 12

months

Within 12

months

Within 12

months

Within 12

months

Within 12

months

An annual work programme is developed

Annual Annual Annual Annual Annual

Research developed and submissions (subs) obtained or received are published on the website in a timely manner as appropriate

Subs 4 Days

Subs 4 Days

Subs 4 Days

Subs 4 Days

Subs 4 Days

134


135


Section 3: Explanatory tables and budgeted financial statements



Table 3.1.1: Movement of administered funds between yearsThe Fair Work Commission has no administered funds. For this reason Table 3.1.1 is not presented.Table 3.1.2: Special accountsThe Fair Work Commission has no special accounts. For this reason Table 3.1.2 is not presented.Table 3.1.3: Australian Government Indigenous expenditureThe Fair Work Commission has no Australian Government Indigenous expenditure. For this reason Table 3.1.3 is not presented.


3.2.1 Differences in agency resourcing and financial statementsThe Fair Work Commission has nil difference to report.3.2.2 Analysis of budgeted financial statementsThe Fair Work Commission is budgeting for a deficit equal to the unappropriated depreciation and amortisation expense in 2015–16 and the three forward years. Total revenue is estimated to be $81.97 million in 2015–16, and total expenses to be $86.6 million including depreciation and amortisation. Total assets for 2015–16 are estimated to be $68 million dollars. Non-financial assets reflect the operations of the Commission, being office fit outs, computer and office equipment, and computer software (included in intangibles). The Commission is planning asset acquisitions in the 2015–16 year primarily relating to information

136


technology equipment, software, and minor office accommodation costs. Total liabilities for 2015–16 are estimated to be $29.9 million. The largest liabilities are accrued employee entitlements.3.2.3 Budgeted financial statements tablesTable 3.2.1 Comprehensive income statement (showing net cost of services) for the period ended 30 June

Prepared an Australian accounting standards basis.

137

2014–15 Estimated

actual$'000

2015–16Budget

$'000


$'000


$'000


$'000EXPENSESEmployee benefits 55,067 53,037 52,392 53,213 54,247 Suppliers 26,282 29,039 28,718 28,799 29,016 Depreciation and amortisation 3,400 4,486 4,486 4,486 4,486 Total expenses 84,749 86,562 85,596 86,498 87,749 LESS: OWN-SOURCE INCOMEOw n-source revenueSale of goods and rendering of services 1,286 2,429 2,429 2,100 1,800 Total own-source revenue 1,286 2,429 2,429 2,100 1,800 GainsOther 176 97 98 98 98 Total gains 176 97 98 98 98 Total own-source income 1,462 2,526 2,527 2,198 1,898 Net cost of/(contribution by) services 83,287 84,036 83,069 84,300 85,851 Revenue from Government 79,887 79,550 78,583 79,814 81,365

Surplus/(deficit) attributable to the Australian Government (3,400) (4,486) (4,486) (4,486) (4,486)OTHER COMPREHENSIVE INCOMEChanges in asset revaluation surplus - - - - - Total other comprehensive income - - - - - Total comprehensive income/(loss) (3,400) (4,486) (4,486) (4,486) (4,486)Total comprehensive income/(loss) attributable to the Australian Government (3,400) (4,486) (4,486) (4,486) (4,486)


Table 3.2.1 Comprehensive income statement (showing net cost of services) for the period ended 30 June (continued)Note: Impact of net cash appropriation arrangements

1 From 2010–11, the government introduced net cash appropriation arrangements where Bill 1 revenue appropriations for the depreciation/amortisation expenses of non-corporate Commonwealth entities (and select corporate Commonwealth entities) were replaced with a separate capital budget (the Departmental Capital Budget, or DCB) provided through Bill 1 equity appropriations. For information regarding DCBs, please refer to Table 3.2.5 Departmental Capital Budget Statement.

138

2014–15$'000

2015–16$'000

2016–17$'000

2017–18$'000

2018–19$'000


- - - - -

less depreciation/amortisation expenses previously funded through revenue appropriations1

3,400 4,486 4,486 4,486 4,486

Total comprehensive income/(loss) - as per the statement of comprehensive income (3,400) (4,486) (4,486) (4,486) (4,486)


Table 3.2.2 Budgeted departmental balance sheet (as at 30 June)

*Equity is the residual interest in assets after the deduction of liabilities.Prepared on an Australian accounting standards basis.

139

2014–15 Estimated

actual$'000

2015–16Budget

$'000


$'000


$'000





Land and buildings 20,303 18,605 17,498 16,388 15,371Property, plant and equipment 7,722 6,210 5,072 4,261 3,281Intangibles 1,812 2,954 3,134 3,014 2,994Other non-f inancial assets 4,588 4,588 4,588 4,588 4,588





Employee provisions 18,864 18,864 18,864 18,864 18,864Other provisions 96 96 96 96 96

Total provisions 18,960 18,960 18,960 18,960 18,960 Liabilities included in disposal groups held for sale - - - - -

Total liabilities 29,901 29,901 29,901 29,901 29,901 Net assets 40,203 38,135 36,070 34,029 32,012 EQUITY*Parent entity interest

Contributed equity 41,174 43,592 46,013 48,458 50,927Reserves - - - - - Retained surplus (accumulated deficit) (971) (5,457) (9,943) (14,429) (18,915)



Table 3.2.3 Budgeted statement of changes in equity—summary of movement (Budget Year 2015–16)

Prepared on Australian accounting standards basis.

140

Retained earnings

$'000

Asset revaluation

reserve$'000

Other reserves

$'000


Total equity

$'000

Opening balance as at 1 July 2015Balance carried forw ard from previous period (971) - - 41,174 40,203

Adjusted opening balance (971) - - 41,174 40,203 Comprehensive income

Surplus/(deficit) for the period (4,486) - - - (4,486)Total comprehensive income (4,486) - - - (4,486)

of w hich:Attributable to the Australian Government (4,486) - - - (4,486)


Departmental Capital Budget (DCB) - - - 2,418 2,418 Sub-total transactions w ith owners - - - 2,418 2,418

Transfers betw een equity components - - - - - Estimated closing balance as at 30 June 2016 (5,457) - - 43,592 38,135


Table 3.2.4 Budgeted departmental statement of cash flows (for the period ended 30 June)


141

2014–15 Estimated

actual$'000

2015–16Budget

$'000


$'000


$'000



Appropriations 79,774 79,550 78,583 79,814 81,365 Other 1,286 2,429 2,429 2,100 1,800


Employees 55,067 53,037 52,392 53,213 54,247 Suppliers 26,103 28,942 28,620 28,701 28,918

Total cash used 81,170 81,979 81,012 81,914 83,165 Net cash from/(used by) operating activities (110) - - - - INVESTING ACTIVITIESCash received

Other - - - - - Total cash received - - - - - Cash used


Total cash used 2,340 2,418 2,421 2,445 2,469 Net cash from/(used by) investing activities (2,340) (2,418) (2,421) (2,445) (2,469)FINANCING ACTIVITIESCash received

Contributed equity 2,450 2,418 2,421 2,445 2,469 Total cash received 2,450 2,418 2,421 2,445 2,469 Cash used

Other - - - - - Total cash used - - - - - Net cash from/(used by) financing activities 2,450 2,418 2,421 2,445 2,469 Net increase/(decrease) in cash held - - - - -




Table 3.2.5 Departmental capital budget statement (for the period ended 30 June)

1 Includes both current Bill 2 and prior Act 2/4/6 appropriations and special capital appropriations.2 Does not include annual finance lease costs. Include purchases from current and previous years' Departmental Capital Budgets (DCBs).3 Includes the following sources of funding:

- current Bill 1 and prior year Act 1/3/5 appropriations (excluding amounts from the DCB)

- donations and contributions- gifts- internally developed assets- s 74 Retained revenue receipts- proceeds from the sale of assets.


142

2014–15 Estimated

actual$'000

2015–16Budget

$'000


$'000


$'000



Capital budget - Bill 1 (DCB) 2,450 2,418 2,421 2,445 2,469 Equity injections - Bill 2 - - - - -

Total new capital appropriations 2,450 2,418 2,421 2,445 2,469 Provided for:


Total Items 2,450 2,418 2,421 2,445 2,469 PURCHASE OF NON-FINANCIAL ASSETS

Funded by capital appropriations1 - - - - - Funded by capital appropriation - DCB2 2,340 2,418 2,421 2,445 2,469 Funded internally from departmental resources3 - - - - -

TOTAL 2,340 2,418 2,421 2,445 2,469 RECONCILIATION OF CASH USED TO ACQUIRE ASSETS TO ASSET MOVEMENT TABLETotal purchases 2,340 2,418 2,421 2,445 2,469



Table 3.2.6 Statement of asset movements (2015–16)

1 "Appropriation equity" refers to equity injections appropriations provided through Appropriation Bill (No. 2) 2015-16, including CDABs.Prepared on Australian accounting standards basis.

143

Buildings

$'000


equipment$'000


intangibles$'000

Total

$'000As at 1 J uly 2015

Gross book value 26,221 10,549 4,068 40,838 Accumulated depreciation/amortisation and impairment (5,918) (2,827) (2,256) (11,001)

Opening net book balance 20,303 7,722 1,812 29,837 Capital asset additions

Estimated expenditure on new or replacement assetsBy purchase - appropriation equity1 178 778 1,462 2,418 Total additions 178 778 1,462 2,418 Other movementsDepreciation/amortisation expense (1,876) (2,290) (320) (4,486)Total other movements (1,876) (2,290) (320) (4,486)

As at 30 J une 2016Gross book value 26,399 11,327 5,530 43,256 Accumulated depreciation/amortisation and impairment (7,794) (5,117) (2,576) (15,487)



Table 3.2.7 Schedule of budgeted income and expenses administered on behalf of Government (for the period ended 30 June)


Table 3.2.8 Schedule of budgeted assets and liabilities administered on behalf of Government (as at 30 June)The Fair Work Commission has no administered assets and liabilities. For this reason Table 3.2.8 is not presented.

144

2014–15 Estimated

actual$'000

2015–16Budget

$'000


$'000


$'000


$'000EXPENSES

Other expenses - - - - - Total expenses administered on behalf of Government - - - - - LESS:OWN-SOURCE INCOMENon-taxation revenue

Other revenue 578 578 578 578 578

Total non-taxation revenue 578 578 578 578 578 Total own-source revenue administered on behalf of Government 578 578 578 578 578 Total own-sourced income administered on behalf of Government 578 578 578 578 578 Net cost of/(contribution by) services (578) (578) (578) (578) (578)Surplus/(deficit) before income tax 578 578 578 578 578

Income tax expense - - - - - Surplus/(Deficit) after income tax 578 578 578 578 578 OTHER COMPREHENSIVE INCOME

Items not subject of subsequent reclassification to net cost of services

Changes in asset revaluation surplus - - - - - Total other comprehensive income - - - - - Total comprehensive income/(loss) 578 578 578 578 578


Table 3.2.9 Schedule of budgeted administered cash flows (for the period ended 30 June)


145

2014–15 Estimated

actual$'000

2015–16Budget

$'000


$'000


$'000



Other 578 578 578 578 578

Total cash received 578 578 578 578 578 Cash used

Other - - - - - Total cash used - - - - - Net cash from/(used by) operating activities 578 578 578 578 578 INVESTING ACTIVITIESCash received


Other - - - - - Total cash used - - - - - Net cash from/(used by) investing activities - - - - - FINANCING ACTIVITIESCash received


Other - - - - - Total cash used - - - - - Net cash from/(used by) financing activities - - - - - Net increase/(decrease) in cash held 578 578 578 578 578

Cash to Off icial Public Account for:- Other (578) (578) (578) (578) (578)



Table 3.2.10 Schedule of administered capital budget statement (for the period ended 30 June)The Fair Work Commission has no administered capital budget. For this reason Table 3.2.10 is not presented.Table 3.2.11 Statement of administered asset movements (Budget year 2015–16)The Fair Work Commission has no administered assets and liabilities. For this reason Table 3.2.11 is not presented.

146



Accounting Policy

The budgeted financial statements have been prepared in accordance with the requirements of the Finance Minister’s Orders issued by the Minister for Finance. The statements have been prepared:• on an accrual accounting basis• in compliance with Australian Accounting Standards and Australian

Equivalents to International Financial Reporting Standards (AEIFRS) and other authoritative pronouncements of the Australian Accounting Standards Board and the Consensus Views of the Urgent Issues Group.

Departmental Revenue from Government

Revenue from government represents the purchase of outputs from the Fair Work Commission by the government. The changes reflected in the ordinary annual appropriations are a result of those new measures and variations that are explained in Section 1: Agency overview and resources, variations and measures.

Departmental Revenue from Other Sources

Revenue from the sale of goods and services will be recognised upon the delivery of the goods or services to customers.

Departmental Expenses – Employees

This item will represent payments made and net increases or decreases in entitlements owed to employees for their services provided in the financial year.

Departmental Expenses – Suppliers

This item will represent payments to suppliers for goods and services.

Departmental Expenses – Depreciation and Amortisation

Property, plant and equipment assets are written-off to their estimated residual values over their estimated useful using, in all cases, the straight-line method of depreciation.Property plant and equipment assets will be depreciated over their useful lives between three and ten years. Leasehold improvements

147


will be amortised on a straight-line basis over the lesser of the estimated useful life of the improvements or the unexpired period of the lease.

Departmental Assets – Financial Assets – Receivables

Receivables represent amounts which will be owing to the Fair Work Commission for goods and services it has provided to external parties and cash reserves held in the Official Public Account.

Departmental Assets – Non-Financial Assets

These items represent future economic benefits that the Fair Work Commission will consume in producing outputs. Apart from re-valued assets, the reported value represents the purchase price paid, less depreciation incurred to date in using that asset from the transferring agencies.Land and Buildings, and Infrastructure, Plant and Equipment will initially be brought to account at cost, except for purchases costing less than $10,000 for leasehold improvements and $2000 for all other classes, which will be expensed in the year of acquisition (other than where they form part of the group of similar items which are significant in total).Computer software, disclosed in the Balance Sheet as Intangibles, will be expensed in the year of acquisition except for purchases or internally developed software costing more than $2000 which are capitalised at cost.The Fair Work Commission will annually reassess and adjust the values of Land and Buildings (leasehold improvements), Infrastructure, Plant and Equipment.

Departmental Liabilities – Provisions – Employees

Provision will be made for the Fair Work Commissions liability for employee entitlements arising from services rendered by the Fair Work Commission, Members and employees to balance date. This liability will encompass unpaid wages and salaries, annual and long service leave and Judges’ long leave. No provision will be made for sick leave.The liability for leave expected to be settled within 12 months is to be measured at the nominal amount.Other employee entitlements payable later than one year will be estimated at the present value of the expected future cash outflows in relation to those entitlements. Attrition rates and pay rises through promotion and wage/salary agreements will be been taken into account.

148

Fair Work Ombudsman


FAIR WORK OMBUDSMAN




151

FWO Budget Statements 2015–16

FAIR WORK OMBUDSMAN



The Fair Work Ombudsman is an independent statutory office created by the Fair Work Act 2009 on 1 July 2009.The Fair Work Ombudsman promotes harmonious, productive and cooperative workplace relations and ensures compliance with Commonwealth workplace laws by: offering people a single point of contact for them to receive

accurate and timely advice and information about Australia’s workplace relations system

educating people working in Australia about their workplace rights and obligations

investigating complaints or suspected contraventions of workplace laws, awards and agreements

using both informal and formal compliance tools, including litigation when necessary, to enforce workplace laws and to deter people from not complying with their workplace responsibilities.

The strategic focus of the Fair Work Ombudsman in 2015–16 is to ensure that there is increased compliance with Commonwealth workplace laws through educating and advising employees, employers, outworkers, outworker entities and organisations about the federal workplace relations system.

153



Table 1.1 shows the total resources from all sources. The table summarises how resources will be applied by outcome and by administered and departmental classification. Table 1.1: Agency resource statement — Budget estimates for 2015–16 as at Budget May 2015

154

Actual Available


$'000



$'000


$'000



Departmental appropriationPrior year appropriations2 79,653 66,129 - 66,129 Departmental appropriation3 115,516 - 117,897 117,897 s74 Retained revenue receipts4 1,300 - 800 800

Total 196,469 66,129 118,697 184,826 Total ordinary annual services [A] 196,469 66,129 118,697 184,826 Other services5 - - - - Total - - - - Total other services [B] - - - - Total available annual appropriations [A+B] 196,469 66,129 118,697 187,226 Special appropriationsSpecial appropriations limited by criteria/entitlement

Fair Work Act 2009 500 - 225 225 Total special appropriations [C] 500 - 225 225 Total appropriations excluding special accounts 196,969 66,129 118,922 187,451


Table 1.1: Agency resource statement — Budget estimates for 2015–16 as at Budget May 2015 (continued)

1 Appropriation Bill (No.1) 2015–16.2 Estimated adjusted balance carried forward from previous year.3 Includes an amount of $9.811 million in 2015–16 for the Departmental Capital Budget (refer to Table 3.2.5 for further details). For accounting purposes this amount has been designated as 'contributions by owners'.4 Estimated Retained revenue receipts under section 74 of the PGPA Act.5 Appropriation Bill (No.2) 2015–16.Reader note: All figures are GST exclusive.

155

Actual Available


$'000



$'000


$'000


$'000Special accounts - - - - Total special accounts [D] - - - - Total resourcing [A+B+C+D] 196,969 66,129 118,922 187,451

Less appropriations drawn from annual or special appropriations above and credited to special accounts

- - - -

Total net resourcing for agency Fair Work Ombudsman 196,969 66,129 118,922 187,451


1.3 BUDGET MEASURES

Budget measures relating to the Fair Work Ombudsman are detailed in Budget Paper No. 2 and are summarised below. Table 1.2: Agency 2015–16 Budget measuresPart 2: MYEFO measures not previously reported in a portfolio statement


156

Programme 2014–15 2015–16 2016–17 2017–18 2018–19$'000 $'000 $'000 $'000 $'000

Measures Communications and Public Affairs Savings 1.1

Departmental expenses (75) (150) (149) (151) (151) Total (75) (150) (149) (151) (151) Expense measures

Departmental (75) (150) (149) (151) (151) Total (75) (150) (149) (151) (151)




Government outcomes are the intended results, impacts or consequences of actions by the Government on the Australian community. Commonwealth programmes are the primary vehicle by which government agencies achieve the intended results of their outcome statements. Agencies are required to identify the programmes which contribute to Government outcomes over the Budget and forward years.Each outcome is described below together with its related programmes, specifying the performance indicators and targets used to assess and monitor the performance of the Fair Work Ombudsman in achieving government outcomes.Outcome 1: Compliance with workplace relations legislation by employees and employers through advice, education and where necessary enforcement.

Outcome 1 StrategyThe workplace rights and obligations of employees, employers, outworkers, outworker entities and organisations are protected and enforced through a mix of targeted compliance and education activities, investigation of breaches of workplace laws with a focus on voluntary compliance and, where necessary, litigation in the courts as a means of both general and specific deterrence.The Fair Work Ombudsman provides a single national point of contact for accurate advice on the federal workplace relations system.The Fair Work Ombudsman provides advice and information on workplace relations matters through the Fair Work Infoline. Fair Work Ombudsman advisors are located in contact centres in a number of states and provide advice on a range of matters including wage rates and conditions of employment.As part of its ongoing educative role, the agency undertakes education and compliance campaigns and provides information services and best practice guides. The educational and compliance campaigns are run at national, state and local levels and target particular industries or geographical locations.The Fair Work Ombudsman has appointed a number of staff as Fair Work Inspectors. These officers are located in all states and territories and investigate complaints received regarding alleged instances of

157


non-compliance with federal workplace relations laws. In the majority of instances compliance with workplace relations laws are achieved voluntarily and are assisted by targeted and industry specific auditing activities. Litigation activities are used when and as required, particularly in cases where breaches have significant consequences, when they affect a vulnerable group or when a person does not acknowledge that the problem requires rectification.The Fair Work Ombudsman makes public statements about its enforcement activities to educate and ensure it has the trust of the Australian community and to promote the general deterrence of those enforcement activities.

158


Outcome 1 Budgeted Expenses and Resources

Table 2.1 provides an overview of the total expenses for Outcome 1, by programme.Table 2.1: Budgeted Expenses and Resources for Outcome 1


159

Outcome 1: Compliance with w orkplace relations legislation by employees and employers through advice, education and where necessary enforcement.

2014–15Estimated

actual expenses

$'000


$'000Programme 1.1: Education Services and Compliance ActivitiesAdministered expenses

Special appropriations 500 225 Departmental expenses

Departmental appropriation1 115,834 111,286 Expenses not requiring appropriation in the Budget year2 10,333 10,701

Total for programme 1.1 126,667 122,212 Outcome 1 Totals by appropriation typeAdministered expenses

Special appropriations 500 225 Departmental expenses

Departmental appropriation1 115,834 111,286 Expenses not requiring appropriation in the Budget year2 10,333 10,701 Total expenses for Outcome 1 126,667 122,212




Programme 1.1: Education Services and Compliance Activities

Programme objective

To educate employers, employees, organisations and contractors about the workplace relations system and to ensure compliance with workplace laws.Table 2.1.1 Programme expenses



The deliverables of the Fair Work Ombudsman are to: provide information, advice and education on the requirements and

flexibilities of workplace laws to foster voluntary compliance investigate claims regarding alleged breaches of workplace laws

and undertake targeted activities litigate, where necessary, to enforce compliance with workplace

laws.Table 2.1.1.A Programme 1.1 Deliverables

160

2014–15 Estimated

actual$'000

2015–16Budget

$'000


$'000


$'000


$'000Special appropriations:

Fair Work Act 2009 500 225 250 275 250 Annual departmental expenses:

Departmental items 115,834 111,286 107,084 107,137 107,694 Expenses not requring appropriation in the Budget year1 10,333 10,701 7,102 8,069 7,982 Total programme expenses 126,667 122,212 114,436 115,481 115,926


actual$'000

2015–16Budget

$'000


$'000


$'000


$'000Education, investigation, provision of advice and information services 126,167 121,987 114,186 115,206 115,676



The key performance indicators for the Fair Work Ombudsman are outlined in the following table and cover the key activities of education, advice and information services and investigations.Table 2.1.1.B Programme 1.1 Key performance indicatorsKey performance indicator

2014–15

Revised

Budget

2015–16

Budget

2016–17

Forward

Estimate

2017–18

Forward

Estimate

2018–19

Forward

Estimate

Number of targeted campaigns:

- National 4 4 4 4 4- State (number of

campaigns in each state/territory)

2 2 2 2 2

Investigations into complaints about breaches of federal agreements or awards completed within 90 days (percentage of total complaints)

80 80 80 80 80

Calls to the Contact Centre resolved at the first point of contact (percentage of total calls)

80 80 80 80 80

Availability of Contact Centre services (percentage of availability during advertised hours)

99 99 99 99 99

Availability of Website (time available as a percentage of total time)

99 99 99 99 99

161





3.1.1 Movement of administered funds between yearsThe Fair Work Ombudsman has no administered funds appropriations. For this reason Table 3.1.1 is not presented.3.1.2 Special AccountsThe Fair Work Ombudsman has no Special Accounts. For this reason Table 3.1.2 is not presented.3.1.3 Australian Government Indigenous expenditureThe Fair Work Ombudsman has no Australian Government Indigenous expenditure. For this reason Table 3.1.3 is not presented.

162



3.2.1 Differences in agency resourcing and financial statementsThe Agency Resource Statement (Table 1.1) details the total appropriation available to an agency from all sources. For departmental operating appropriations (outputs) this includes carry-forward amounts as well as amounts appropriated at Budget. As agencies incur and are funded for future liabilities and employee entitlements, the total amount of departmental operating appropriation available to an agency is unlikely to be fully utilised in the Budget year. The difference between the agency resource statement and the sum of all payments made at the departmental outputs level is the expected carry-forward amount of resources for the 2014–15 Budget year, including amounts related to meeting future employee entitlement obligations.3.2.2 Analysis of budgeted financial statementsThe Fair Work Ombudsman is budgeting for an operating loss equal to the unappropriated depreciation and amortisation expense of $10.6 million for the 2015–16 financial year.Total revenues are estimated to be $111.2 million and total expenses $122.0 million. Total assets at the end of the 2015–16 financial year are estimated to be $95.8 million. The majority of the assets represent receivables (appropriations receivable) and property fit outs. Asset acquisitions are planned in Information Technology equipment and systems and on office accommodation fit outs.Total liabilities for 2015–16 are estimated at $36.1 million. The largest liability item is accrued employee entitlements.

163



164



1 From 2010–11, the government introduced net cash appropriation arrangements where Bill 1 revenue appropriations for the depreciation/amortisation expenses of non-corporate Commonwealth entities (and select corporate Commonwealth entities) were replaced with a separate capital budget (the Departmental Capital Budget, or DCB) provided through Bill 1 equity appropriations. For information regarding DCBs, please refer to Table 3.2.5 Departmental Capital Budget Statement.

165

2014–15 Estimated

actual$'000

2015–16Budget

$'000


$'000


$'000


$'000EXPENSESEmployee benefits 74,684 72,904 71,599 72,000 71,564 Suppliers 41,250 38,482 35,585 35,237 36,230 Depreciation and amortisation 10,233 10,601 7,002 7,969 7,882 Total expenses 126,167 121,987 114,186 115,206 115,676 LESS: OWN-SOURCE INCOMEOw n-source revenueSale of goods and rendering of services 4,350 2,900 1,050 690 500 Other 300 300 300 300 300 Total own-source revenue 4,650 3,200 1,350 990 800 GainsOther 100 100 100 100 100 Total gains 100 100 100 100 100 Total own-source income 4,750 3,300 1,450 1,090 900 Net cost of/(contribution by) services 121,417 118,687 112,736 114,116 114,776 Revenue from Government 111,184 108,086 105,734 106,147 106,894 Surplus/(deficit) attributable to the Australian Government (10,233) (10,601) (7,002) (7,969) (7,882)OTHER COMPREHENSIVE INCOMETotal other comprehensive income - - - - -Total comprehensive income/(loss) (10,233) (10,601) (7,002) (7,969) (7,882)Total comprehensive income/(loss) attributable to the Australian Government (10,233) (10,601) (7,002) (7,969) (7,882)

2014–15$'000

2015–16$'000

2016–17$'000

2017–18$'000

2018–19$'000


- - - - -


10,233 10,601 7,002 7,969 7,882

Total comprehensive income/(loss) - as per the statement of comprehensive income (10,233) (10,601) (7,002) (7,969) (7,882)



166



167

2014–15 Estimated

actual$'000

2015–16Budget

$'000


$'000


$'000



Cash and cash equivalents 3,160 3,160 3,160 3,160 3,160 Trade and other receivables 66,920 63,975 64,190 64,265 63,844


Land and buildings 13,612 12,486 13,913 12,857 13,331 Property, plant and equipment 3,788 3,160 2,491 2,019 2,494 Intangibles 11,138 11,611 10,222 8,702 6,720 Other non-f inancial assets 1,452 1,452 1,452 1,452 1,452



Suppliers 11,164 10,370 11,369 10,844 10,844 Total payables 11,164 10,370 11,369 10,844 10,844 Provisions

Employee provisions 20,075 19,725 19,450 19,575 19,575 Other provisions 8,261 5,969 4,969 4,969 4,969

Total provisions 28,336 25,694 24,419 24,544 24,544 Total liabilities 39,500 36,064 35,788 35,388 35,388 Net assets 60,570 59,780 59,640 57,067 55,613



* 'Equity' is the residual interest in assets after deduction of liabilities.Prepared on Australian Accounting Standards basis.

168

2014–15 Estimated

actual$'000

2015–16Budget

$'000


$'000


$'000



Contributed equity 92,562 102,373 109,235 114,631 121,059 Reserves 5,776 5,776 5,776 5,776 5,776 Retained surplus (accumulated deficit) (37,768) (48,369) (55,371) (63,340) (71,222)





169

Retained earnings

$'000

Asset revaluation

reserve$'000

Other reserves

$'000


Total equity

$'000

Opening balance as at 1 July 2015Balance carried forw ard from previous period (37,768) 5,776 - 92,562 60,570

Adjusted opening balance (37,768) 5,776 - 92,562 60,570Comprehensive income

Surplus/(deficit) for the period (10,601) - - - (10,601)Total comprehensive income (10,601) - - - (10,601)Transactions with owners

Contributions by ownersEquity Injection - Appropriation - - - - -Departmental Capital Budget (DCB) - - - 9,811 9,811

Sub-total transactions with owners - - - 9,811 9,811Estimated closing balance as at 30 June 2016 (48,369) 5,776 - 102,373 59,780



170

2014–15 Estimated

actual$'000

2015–16Budget

$'000


$'000


$'000



Appropriations 124,708 111,031 105,519 106,072 107,315 Sale of goods and rendering of services 4,350 2,900 1,050 690 500 Other 300 300 300 300 300


Employees 75,322 73,254 71,874 71,875 71,564 Suppliers 43,069 39,468 34,486 35,662 36,130 Other 2,000 2,000 1,000 - -

Total cash used 120,391 114,722 107,360 107,537 107,694 Net cash from/(used by) operating activities 8,967 (491) (491) (475) 421 INVESTING ACTIVITIESCash received







171

2014–15 Estimated

actual$'000

2015–16Budget

$'000


$'000


$'000



Contributed equity 4,332 9,811 6,862 5,396 6,428 Total cash received 4,332 9,811 6,862 5,396 6,428 Cash used

Other - - - - - Total cash used - - - - - Net cash from/(used by) financing activities 4,332 9,811 6,862 5,396 6,428 Net increase/(decrease) in cash held - - - - -

Cash and cash equivalents at the beginning of the reporting period 3,160 3,160 3,160 3,160 3,160

Cash and cash equivalents at the end of the reporting period 3,160 3,160 3,160 3,160 3,160



1 Does not include annual finance lease costs. Include purchases from current and previous years' Departmental Capital Budgets (DCBs).2 Includes the following sources of funding:

- current Bill 1 and prior year Act 1/3/5 appropriations (excluding amounts from the DCB) - donations and contributions - gifts - internally developed assets - s 74 Retained revenue receipts

- proceeds from the sale of assets.Prepared on Australian Accounting Standards basis.

172

2014–15 Estimated

actual$'000

2015–16Budget

$'000


$'000


$'000



Capital budget - Bill 1 (DCB) 4,332 9,811 6,862 5,396 6,428

Total new capital appropriations 4,332 9,811 6,862 5,396 6,428 Provided for:


Total Items 4,332 9,811 6,862 5,396 6,428 PURCHASE OF NON-FINANCIAL ASSETS

Funded by capital appropriation - DCB1 11,299 4,320 4,371 4,921 5,849 Funded internally from departmental resources2 2,000 5,000 2,000 - 1,000

TOTAL 13,299 9,320 6,371 4,921 6,849 RECONCILIATION OF CASH USED TO ACQUIRE ASSETS TO ASSET MOVEMENT TABLE

Total purchases 13,299 9,320 6,371 4,921 6,849





173

Buildings

$'000


equipment$'000


intangibles$'000

Total

$'000As at 1 J uly 2015Gross book value 19,160 4,460 27,221 50,841Accumulated depreciation/amortisation and impairment (5,548) (672) (16,083) (22,303)

Opening net book balance 13,612 3,788 11,138 28,538Capital asset additionsEstimated expenditure on new or replacement assetsBy purchase - appropriation equity1 4,977 203 4,140 9,320Total additions 4,977 203 4,140 9,320Other movementsDepreciation/amortisation expense (6,103) (831) (3,667) (10,601)Total other movements (6,103) (831) (3,667) (10,601)As at 30 J une 2016Gross book value 24,137 4,663 31,361 60,161Accumulated depreciation/amortisation and impairment (11,651) (1,503) (19,750) (32,904)





174

2014–15 Estimated

actual$'000

2015–16Budget

$'000


$'000


$'000


$'000EXPENSES

Other expenses - - - - - Total expenses administered on behalf of Government - - - - - LESS:OWN-SOURCE INCOMENon-taxation revenue

Other revenue 300 300 300 300 300 Total non-taxation revenue 300 300 300 300 300 Total own-source revenue administered on behalf of Government 300 300 300 300 300 Total own-sourced income administered on behalf of Government 300 300 300 300 300 Total comprehensive income/(loss) (300) (300) (300) (300) (300)




175

2014–15 Estimated

actual$'000

2015–16Budget

$'000


$'000


$'000



Trade and other receivables 1,281 1,281 1,281 1,281 1,281 Other f inancial assets 90 90 90 90 90

Total financial assets 1,371 1,371 1,371 1,371 1,371 Total assets administered on behalf of Government 1,371 1,371 1,371 1,371 1,371 LIABILITIESPayables

Other payables - - - - - Total payables - - - - - Total liabilities administered on behalf of Government - - - - - Net assets/(liabilities) 1,371 1,371 1,371 1,371 1,371




176

2014–15 Estimated

actual$'000

2015–16Budget

$'000


$'000


$'000



Other 300 300 300 300 300 Total cash received 300 300 300 300 300 Cash used

Other - - - - - Total cash used - - - - - Net cash from/(used by) operating activities 300 300 300 300 300 FINANCING ACTIVITIESCash received


Other - - - - - Total cash used - - - - - Net cash from/(used by) financing activities - - - - - Net increase/(decrease) in cash held 300 300 300 300 300

Cash and cash equivalents at beginning of reporting period

Cash from Official Public Account for:- Appropriations - - - - -

Total cash from Official Public Account - - - - - Cash to Official Public Account for:

- Appropriations - - - - - - Transfers to other entities (300) (300) (300) (300) (300)

Total cash to Official Public Account (300) (300) (300) (300) (300)



Table 3.2.10: Administered capital budget statement (for the period ended 30 June)The Fair Work Ombudsman has no administered capital budget. For this reason Table 3.2.10 is not presented.Table 3.2.11 Statement of administered asset movements (Budget year 2015–16) The Fair Work Ombudsman has no administered non-financial assets. For this reason Table 3.2.11 is not presented.

177



Accounting Policy

The budgeted financial statements have been prepared in accordance with the requirements of the Finance Minister’s Orders issued by the Minister for Finance.The statements have been prepared: on an accrual accounting basis in compliance with Australian Accounting Standards and Australian


Agency Revenue from Government

Revenue from Government represents the purchase of outputs from the Fair Work Ombudsman by the Government.

Agency Revenue – Own Source Income

Revenue from the sale of goods and services is recognised upon the delivery of the goods or services to customers.

Agency Expenses – Employee Benefits

This item represents payments made and net increases or decreases in entitlements owed to employees for their services provided in the financial year.

Agency Expenses – Suppliers

This item represents payments to suppliers for goods and services.

Agency Expenses – Depreciation and Amortisation

Property, plant, equipment and intangible assets are written-off to their estimated residual values over their estimated useful lives to the Fair Work Ombudsman using, in all cases, the straight-line method of depreciation.Computing equipment assets are depreciated over their useful lives which are between three and seven years. Office machines are depreciated over five years (20 per cent). Leasehold improvements

178


are amortised on a straight-line basis over the lesser of the estimated useful life of the improvements or the unexpired period of the lease. Forward estimates of depreciation expense are made using forecasts of net capital acquisition requirements over the forward years.

Agency Assets – Financial Assets – Cash

Cash represents notes and coins held and deposits at call with a bank or financial institution.

Agency Assets – Financial Assets – Receivables

Receivables represent amounts owing to the Fair Work Ombudsman for goods and services it has provided to external parties and cash reserves held in the Official Public Account.

Agency Assets – Non-Financial Assets

These items represent future economic benefits that the Fair Work Ombudsman will consume in producing outputs. Apart from re-valued assets, the reported value represents the purchase price paid less depreciation incurred to date in using that asset.Infrastructure, plant and equipment is initially brought to account at cost, except for purchases costing less than $2,000, which are expensed in the year of acquisition (other than where they form part of a group of similar items which are significant in total).Internally developed or purchased computer software, disclosed in the Departmental Balance Sheet as intangibles, is expensed in the year of acquisition except for purchased software costing more than $2,000 or for internally developed software costing more than $200,000 which are capitalised at cost.Land and buildings (leasehold improvements) are initially brought to account at cost, except for purchases costing less than $2,000, which are expensed in the year of acquisition. The Fair Work Ombudsman annually reassesses and adjusts the values of land and buildings (leasehold improvements), infrastructure, plant and equipment.

Agency Liabilities – Provisions – Employees

Provision has been made for the Fair Work Ombudsman’s liability for employee entitlements arising from services rendered by employees to balance date. This liability encompasses unpaid wages and salaries, annual and long service leave. No provision is made for sick leave.The liability for leave expected to be settled within 12 months has been measured at the nominal amount.

179


Other employee entitlements payable later than one year have been estimated at the present value of the expected future cash outflows in relation to those entitlements. Attrition rates and pay rises through promotion and wage/salary agreements have been taken into account in calculating the provision for employee entitlements.

Agency Liabilities – Payables – Suppliers

This item mainly comprises trade creditors and operating lease rentals.

Administered Non-Taxation Revenue – Other Sources

This revenue comprises court awarded penalties relating to breaches of the Fair Work Act 2009 and other relevant legislation. The penalties are administered by the Fair Work Ombudsman on behalf of government.

Administered Assets – Financial Assets – Receivables

These assets comprise receivables relating to court awarded penalties for breaches of the Fair Work Act 2009 and other relevant legislation. The penalties are administered by the Fair Work Ombudsman on behalf of government.

Administered Cash Flows

These cash flows relate to court awarded penalties for breaches of the Fair Work Act 2009 and other relevant legislation. The penalties are administered by the Fair Work Ombudsman on behalf of government and are paid directly into the Consolidated Revenue Fund.

180

Office of the Fair Work Building Industry

Inspectorate


OFFICE OF THE FAIR WORK BUILDING INDUSTRY INSPECTORATE




183

FWBII Budget Statements 2015–16

OFFICE OF THE FAIR WORK BUILDING INDUSTRY INSPECTORATE



The Office of the Fair Work Building Industry Inspectorate (FWBII) was established by the Fair Work (Building Industry) Act 2012 on 1 June 2012. FWBII began operations on 1 June 2012. It operates under the name Fair Work Building and Construction.In respect of the building and construction industry, FWBII is primarily responsible for: the provision of education, assistance and advice to industry

participants regarding their rights and obligations inquiring into and investigating alleged breaches of relevant

workplace laws commencing civil penalty litigation, or making submissions to the

Fair Work Commission, to enforce compliance by industry participants

and referring matters to relevant authorities where appropriate including in relation to:– Fair Work (Building Industry) Act 2012– Fair Work Act 2009, the Fair Work (Transitional Provisions and

Consequential Amendments) Act 2009 and the Independent Contractors Act 2006

– safety net entitlements– awards, agreements and court and tribunal orders– the Building Code– Competition and Consumer Act 2010– allegations of criminal conduct.

During 2015–16, FWBII plans to achieve the following outcomes: enforce workplace relations laws in the building and construction

industry and ensure compliance with those laws by all participants in the building and construction industry through the provision of education, assistance and advice and where necessary, civil penalty litigation in the courts

ensure compliance with building codes of practice through the provision of education, assistance and advice.

185



Table 1.1 shows the total resources from all sources. The table summarises how resources will be applied by outcome and by administered and departmental classification.Table 1.1: Office of the Fair Work Building Industry Inspectorate resource statement—Budget estimates for 2015–16 as at Budget May 2015

186

Actual Available


$'000



$'000


$'000



Departmental appropriationPrior year appropriations2 48,419 47,635 - 47,635 Departmental appropriation3 14,986 - 35,160 35,160 s74 Retained revenue receipts4 44 - 51 51 Total 63,449 47,635 35,211 82,846

Total ordinary annual services [A] 63,449 47,635 35,211 82,846 Other services5

Departmental non- operatingEquity injections - - - - Total - - - -

Total other services [B] - - - - Total available annual appropriations [A+B] 63,449 47,635 35,211 82,846


Table 1.1: Office of the Fair Work Building Industry Inspectorate resource statement—Budget estimates for 2015–16 as at Budget May 2015 (continued)

1 Appropriation Bill (No.1) 2015–16.2 Estimated adjusted balance carried forward from previous year.3 Includes an amount of $1.601 m in 2015–16 for the Departmental Capital Budget (refer to Table 3.2.5 for further details). For accounting purposes this amount has been designated as 'contributions by owners'.4 Estimated Retained revenue receipts under section 74 of the PGPA Act.5 Appropriation Bill (No.2) 2015–16.Reader note: All figures are GST exclusive.

187

Actual Available


$'000



$'000


$'000


$'000Special appropriations - - - - Total special appropriations [C] - - - - Total appropriations excluding special accounts 63,449 47,635 35,211 82,846 Special accounts - - - - Total special accounts [D] - - - - Total resourcing [A+B+C+D] 63,449 47,635 35,211 82,846


- - - -

and/or payments to corporate entities through annual appropriations - - - -

Total net resourcing for the Office of the Fair Work Building Industry Inspectorate 63,449 47,635 35,211 82,846


1.3 BUDGET MEASURES

Budget measures relating to the Office of the Fair Work Building Industry Inspectorate are detailed in Budget Paper No. 2 and are summarised below.Table 1.2: Office of the Fair Work Building Industry Inspectorate 2015–16 Budget measuresPart 2: MYEFO measures not previously reported in a portfolio statement


188

Programme2014–15

$'0002015–16

$'0002016–17

$'0002017–18

$'0002018–19

$'000MeasuresCommunications and Public Affairs Savings

1.1

Departmental expenses (7) (14) (14) (14) (14)

Total (7) (14) (14) (14) (14) Total measures

Departmental (7) (14) (14) (14) (14)

Total (7) (14) (14) (14) (14)




Government outcomes are the intended results, impacts or consequences of actions by the government on the Australian community. Commonwealth programmes are the primary vehicle by which government agencies achieve the intended results of their outcome statements. Agencies are required to identify the programmes which contribute to government outcomes over the Budget and forward years.Each outcome is described below together with its related programmes, specifying the performance indicators and targets used to assess and monitor the performance of the Fair Work Building Industry Inspectorate in achieving government outcomes.Outcome 1: Enforce workplace relations laws in the building and construction industry and ensure compliance with those laws by all participants in the building and construction industry through the provision of education, assistance and advice.

Outcome 1 StrategyKey strategies towards achieving FWBII’s outcome in 2015–16 are to: provide ready access to information on relevant workplace laws and

codes of practice provide education, assistance and advice to industry participants conduct site visits, inspections and audits involving the building

codes of practice conduct investigations into alleged breaches of workplace laws undertake enforcement action, including civil penalty litigation.

189


Outcome 1 Budgeted Expenses

Table 2.1 provides an overview of the total expenses for Outcome 1, by programme.Table 2.1: Budgeted Expenses for Outcome 1

1 Departmental appropriation combines 'Ordinary annual services (Appropriation Bill No. 1)' and 'Revenue from independent sources (s 74)'.2 Expenses not requiring appropriation in the Budget year are made up of depreciation expenses, amortisation expenses, and audit fees.Note: Departmental appropriation splits and totals are indicative estimates and may change in the course of the budget year as government priorities change

190

Outcome 1: Enforce workplace relations laws in the building and construction industry and ensure compliance with those law s by all participants in the building and construction industry through the provision of education, assistance and advice.

2014–15Estimated

actual expenses

$'000


$'000Programme 1.1: Education Services and Compliance Departmental expenses

Departmental appropriation1 14,590 33,606 Expenses not requiring appropriation in the Budget year2 785 402


Departmental appropriation1 14,590 33,606 Expenses not requiring appropriation in the Budget year2 785 402 Total expenses for Outcome 1 15,375 34,008




Programme 1.1: Education Services and Compliance Activities

Programme objective

Enforce workplace relations laws in the building and construction industry and ensure compliance with those laws by all participants in the building and construction industry through the provision of education, assistance and advice and where necessary civil penalty litigation in the courts.Table 2.1.1 Programme expenses



The deliverables of the FWBII are to: provide information, advice and education on workplace laws to

foster voluntary compliance conduct site visits, inspections and audits involving the building

codes of practice investigate claims regarding alleged breaches of workplace laws

and undertake targeted activities litigate, where necessary, to enforce compliance with workplace

laws.Table 2.1.1.A Programme 1.1 Deliverables

191

2014–15 Estimated

actual$'000

2015–16Budget

$'000


$'000


$'000



Departmental item 14,590 33,606 33,556 33,805 34,142 Expenses not requring appropriation in the Budget year1 785 402 1,081 1,251 1,159



actual$'000

2015–16Budget

$'000


$'000


$'000


$'000Education, investigation, provision of advice and information services 15,375 34,008 34,637 35,056 35,301



The key performance indicators for the FWBII are outlined in the following table and cover the key activities of education, advice and information services and investigations.Table 2.1.1.B Programme 1.1 Key performance indicatorsQuality 2015–16 targetLevel of satisfaction of clients with quality and timeliness of advice and assistance provided by FWBII.

75% of surveyed clients satisfied or highly satisfied

Timeliness in commencing proceedings over contraventions of the Fair Work Act 2009, the Independent Contractors Act 2006, the Fair Work (Building Industry) Act 2012, agreements, awards and orders.

File 75% of matters in court within 12 months of the complaint being lodged

Level of satisfaction of a range of industry participants with contact aimed at promoting appropriate standards of conduct.

75% of surveyed industry participants satisfied or highly satisfied

192





3.1.1 Movement of administered funds between yearsThe Fair Work Building Industry Inspectorate has no administered funds appropriations. For this reason Table 3.1.1 is not presented.3.1.2 Special AccountsThe Fair Work Building Industry Inspectorate has no special accounts. For this reason Table 3.1.2 is not presented.3.1.3 Australian Government Indigenous expenditureThe Fair Work Building Industry Inspectorate has no Australian Government Indigenous expenditure. For this reason Table 3.1.3 is not presented.


3.2.1 Differences in agency resourcing and financial statementsThe Agency Resource Statement (Table 1.1) details the total appropriation available to an agency from all sources. For departmental operating appropriations (outputs) this includes carry-forward amounts as well as amounts appropriated at Budget. As agencies incur and are funded for future liabilities and employee entitlements, the total amount of departmental operating appropriation available to an agency is unlikely to be fully utilised in the Budget year. The difference between the agency resource statement and the sum of all payments made at the departmental outputs level is the expected carry-forward amount of resources for the 2015–16 Budget year, including amounts related to meeting future employee entitlement obligations.

193


3.2.2 Analysis of budgeted financial statementsThe Fair Work Building Industry Inspectorate is budgeting for an operating loss equal to the unappropriated depreciation and amortisation expense of $0.3 million for the 2015–16 financial year.Total revenues are estimated to be $33.6 million and total expenses $34.0 million. Total assets at the end of the 2015–16 financial year are estimated to be $51.1 million. The majority of the assets represent receivables (appropriations receivable) and property fit outs. Asset acquisitions are planned in Information Technology equipment and systems and on office accommodation fit outs.Total liabilities for 2015–16 are estimated at $6 million. The largest liability item is accrued employee entitlements.

194



195

2014–15 Estimated

actual$'000

2015–16Budget

$'000


$'000


$'000


$'000EXPENSESEmployee benefits 8,612 19,139 19,704 19,994 19,925 Suppliers 6,034 14,523 13,908 13,867 14,273 Depreciation and amortisation 729 346 1,025 1,195 1,103 Total expenses 15,375 34,008 34,637 35,056 35,301 LESS: OWN-SOURCE INCOMEOwn-source revenueOther 46 47 49 49 50 Total own-source revenue 46 47 49 49 50 GainsOther 56 56 56 56 56 Total gains 56 56 56 56 56 Total own-source income 102 103 105 105 106 Net cost of/(contribution by) services 15,273 33,905 34,532 34,951 35,195 Revenue from Government 14,544 33,559 33,507 33,756 34,092

Surplus/(deficit) attributable to the Australian Government (729) (346) (1,025) (1,195) (1,103)OTHER COMPREHENSIVE INCOMEChanges in asset revaluation surplus - - - - - Total other comprehensive income - - - - - Total comprehensive income/(loss) (729) (346) (1,025) (1,195) (1,103)Total comprehensive income/(loss) attributable to the Australian Government (729) (346) (1,025) (1,195) (1,103)




196

2014–15$'000

2015–16$'000

2016–17$'000

2017–18$'000

2018–19$'000


- - - - -


729 346 1,025 1,195 1,103

Total comprehensive income/(loss) - as per the statement of comprehensive income (729) (346) (1,025) (1,195) (1,103)



197

2014–15 Estimated

actual$'000

2015–16Budget

$'000


$'000


$'000





Land and buildings 346 4,750 4,120 3,577 2,847Property, plant and equipment 538 568 428 322 727Intangibles 685 655 498 223 - Other non-f inancial assets 614 614 614 614 614

Total non-financial assets 2,183 6,587 5,660 4,736 4,188 Total assets 50,439 51,096 50,521 49,779 49,133 LIABILITIESPayables

Suppliers 1,543 1,528 1,528 1,528 1,528 Other payables 1,609 1,026 1,026 1,026 1,026


Employee provisions 3,495 3,495 3,495 3,495 3,495Total provisions 3,495 3,495 3,495 3,495 3,495 Total liabilities 6,647 6,049 6,049 6,049 6,049 Net assets 43,792 45,047 44,472 43,730 43,084



* 'Equity' is the residual interest in assets after deduction of liabilities.Prepared on Australian Accounting Standards basis.

198

2014–15 Estimated

actual$'000

2015–16Budget

$'000


$'000


$'000



Contributed equity 5,178 6,779 7,229 7,682 8,139Retained surplus (accumulated deficit) 38,614 38,268 37,243 36,048 34,945

Total parent entity interest 43,792 45,047 44,472 43,730 43,084Total Equity 43,792 45,047 44,472 43,730 43,084


Table 3.2.3: Departmental statement of changes in equity—summary of movement (Budget year 2015–16)


199

Retained earnings

$'000

Asset revaluation

reserve$'000

Other reserves

$'000


Total equity

$'000

Opening balance as at 1 July 2015Balance carried forw ard from previous period 38,614 - - 5,178 43,792

Adjusted opening balance 38,614 - - 5,178 43,792 Comprehensive income

Surplus/(deficit) for the period (346) - - - (346)Total comprehensive income (346) - - - (346)

of w hich:Attributable to the Australian Government (346) - - - (346)

Transactions w ith ownersContributions by owners

Departmental Capital Budget (DCB) - - - 1,601 1,601 Sub-total transactions with owners - - - 1,601 1,601

Transfers betw een equity components - - - - - Estimated closing balance as at 30 June 2016 38,268 - - 6,779 45,047

Less: non-controlling interests - - - - - Closing balance attributable to the Australian Government 38,268 - - 6,779 45,047



200

2014–15 Estimated

actual$'000

2015–16Budget

$'000


$'000


$'000



Appropriations 15,394 32,444 33,155 33,574 34,190Other 8 10 49 49 50


Employees 7,745 18,890 19,704 19,994 19,925Suppliers 6,804 11,168 13,852 13,811 14,217

Total cash used 14,549 30,058 33,556 33,805 34,142Net cash from/(used by) operating activities 853 2,396 (352) (182) 98INVESTING ACTIVITIESCash received

Other - - - - -Total cash received - - - - -Cash used

Purchase of property, plant and equipment 1,314 4,750 98 271 555

Total cash used 1,314 4,750 98 271 555Net cash from/(used by) investing activities (1,314) (4,750) (98) (271) (555)




201

2014–15 Estimated

actual$'000

2015–16Budget

$'000


$'000


$'000



Contributed equity 463 2,436 450 453 457Total cash received 463 2,436 450 453 457Cash used

Other - - - - -Total cash used - - - - -Net cash from/(used by) financing activities 463 2,436 450 453 457Net increase/(decrease) in cash held 2 82 - - -





1 Does not include annual finance lease costs. Include purchase from current and previous years' Departmental Capital Budgets (DCBs).2 Includes the following sources of funding:

- current Bill 1 and prior year Act 1/3/5 appropriations (excluding amounts from the DCB).

- donations and contributions- gifts- internally developed assets- s74 relevant agency receipts - proceeds from the sale of assets


202

2014–15 Estimated

actual$'000

2015–16Budget

$'000


$'000


$'000



Capital budget - Bill 1 (DCB) 442 1,601 450 453 457

Total new capital appropriations 442 1,601 450 453 457Provided for:

Purchase of non-financial assets 442 1,601 450 453 457Total Items 442 1,601 450 453 457


Funded by capital appropriation - DCB1 1,314 836 98 271 555Funded internally from departmental resources2 - 3,914 - - -

TOTAL 1,314 4,750 98 271 555RECONCILIATION OF CASH USED TO ACQUIRE ASSETS TO ASSET MOVEMENT TABLETotal purchases 1,314 4,750 98 271 555Total cash used to acquire assets 1,314 4,750 98 271 555




203

Buildings

$'000


equipment$'000


intangibles$'000

Total

$'000As at 1 J uly 2015

Gross book value 7,769 1,189 1,494 10,452 Accumulated depreciation/amortisation and impairment (7,423) (651) (809) (8,883)

Opening net book balance 346 538 685 1,569 Capital asset additions

Estimated expenditure on new or replacement assetsBy purchase - appropriation equity1 4,640 110 - 4,750 Total additions 4,640 110 - 4,750 Other movementsDepreciation/amortisation expense (236) (80) (30) (346)Total other movements (236) (80) (30) (346)

As at 30 J une 2016Gross book value 12,409 1,299 1,494 15,202 Accumulated depreciation/amortisation and impairment (7,659) (731) (839) (9,229)

Closing net book balance 4,750 568 655 5,973


Table 3.2.7: Schedule of budgeted income and expenses administered on behalf of Government (for the period ended 30 June)The FWBII has no budgeted administered income or expenses. For this reason Table 3.2.7 is not presented.Table 3.2.8: Schedule of budgeted assets and liabilities administered on behalf of Government (as at 30 June)The FWBII has no budgeted administered assets or liabilities. For this reason Table 3.2.8 is not presented.Table 3.2.9: Schedule of budgeted administered cash flows (for the period ended 30 June)The FWBII has no budgeted administered cash flows. For this reason Table 3.2.9 is not presented.Table 3.2.10: Administered capital budget statement (for the period ended 30 June)The FWBII has no administered capital budget. For this reason Table 3.2.10 is not presented.Table 3.2.11: Statement of administered asset movements (Budget year 2015–16)The FWBII has no administered non-financial assets. For this reason Table 3.2.11 is not presented.

204


3.2.4 Notes to the Financial Statements

Accounting Policy

The budgeted financial statements have been prepared in accordance with the requirements of the Finance Minister’s Orders issued by the Minister for Finance.The statements have been prepared: On an accrual accounting basis in compliance with Australian Accounting Standards and Australian


Agency Revenue from government

Revenue from government represents the purchase of outputs from the FWBII by the government.

Agency Revenue – Own Source Income

Revenue from the sale of goods and services is recognised upon the delivery of the goods or services to customers.

Agency Expenses – Employee Benefits

This item represents payments made and net increases or decreases in entitlements owed to employees for their services provided in the financial year.

Agency Expenses – Suppliers

This item represents payments to suppliers for goods and services.

Agency Expenses – Depreciation and Amortisation

Property, plant, equipment and intangible assets are written-off to their estimated residual values over their estimated useful lives to FWBII using the straight-line method of depreciation. Forward estimates of depreciation expenses are made using forecasts of net capital acquisitions over the forward years.

Agency Assets – Financial Assets – Cash

Cash represents notes and coins held and deposits at call with a bank or financial institution.

205


Agency Assets – Financial Assets – Receivables

Receivables represent amounts owing to FWBII for cash reserves held in the Official Public Account and prepayments.

Agency Assets – Non-Financial Assets

These items represent future economic benefits that the FWBII will consume in producing outputs.Property, plant and equipment and intangibles are brought to account at cost, except for purchases costing less than $50,000 for internally developed computer software, less than $20,000 for leasehold improvements and less than $2000 for all other classes, which are expensed in the year of acquisition (other than where they form part of a group of similar items which are significant in total).Following initial recognition at cost property, plant and equipment are carried at fair value less accumulated depreciation. Valuations are conducted with sufficient frequency to ensure that the carrying amount does not differ materially from the assets’ fair values at reporting date.

Agency Liabilities – Provisions – Employees

Provision has been made for the FWBII’s liability for employee entitlements arising from services rendered by employees to balance date. This liability encompasses unpaid wages and salaries, annual and long service leave. No provision is made for sick leave.Employee entitlements payable are measured as the present value of the estimated future cash outflows to be made in respect of services provided by employees up to the reporting date. Liabilities expected to be settled within twelve months are measured at the nominal amount.

Agency Liabilities – Payables – Suppliers

Suppliers and other payables are recognised at amortised cost. Liabilities are recognised to the extent that the goods or services have been received (and irrespective of having been invoiced).

206

Safe Work Australia


SAFE WORK AUSTRALIA




209

SWA Budget Statements 2015–16

SAFE WORK AUSTRALIA



Safe Work Australia was established as a Statutory Agency on 1 November 2009 under the Safe Work Australia Act 2008 (the Act). The agency operates under the Commonwealth Government's accountability and governance frameworks.Safe Work Australia is the body leading the development of national policy to improve work health and safety and workers’ compensation across Australia. Safe Work Australia works collaboratively with regulators, industry and worker associations and the community, to realise the national vision of healthy, safe and productive working lives.The establishment of Safe Work Australia was provided for in the Intergovernmental Agreement for Regulatory and Operational Reform in Occupational Health and Safety (IGA), agreed by the Council of Australian Governments (COAG) on 3 July 2008. The agency is jointly funded by the Commonwealth, state and territory governments. This funding arrangement promotes collaboration with jurisdictions on policy development, implementation, compliance and enforcement, and communication activities.Safe Work Australia has 15 Members, including an independent Chair, nine Members representing the Commonwealth and each state and territory, two Members representing the interests of employers, two representing the interests of employees, and the Chief Executive Officer of Safe Work Australia (CEO).The CEO manages the agency under section 45 of the Act and is the Accountable Authority in accordance with the Public Governance, Performance and Accountability Act 2013.Together, the Safe Work Australia Members and the agency work to achieve: significant and continued reductions in the incidence of work-

related death, injury and illness through– an improved and reformed work health and safety framework – increased work health and safety awareness and skills– developing and maintaining an evidence base which informs

policy and practice

211


– reduced exposure to work-related hazards causing injury and illness

– improved quality of workplace controls improved outcomes for injured workers and their employers

through more effective, efficient, clearly understood and sustainable workers’ compensation arrangements.

During 2015–16, Safe Work Australia will continue to be a model for the innovative development of multi-stakeholder policy and be central to Australia becoming a world leader in the delivery of improved safety and compensation outcomes. We will do this by: acting as a forum to bring together and recognise varying views

and interests to enable the effective development of national policy using our influence to increase knowledge and awareness of health

and safety and workers’ compensation and normalise the conversation about safe work

being a key source of work health and safety and workers’ compensation research, evaluation and data.

212



Table 1.1 shows the total resources from all sources. The table summarises how resources will be applied by outcome and departmental classification.Table 1.1: Safe Work Australia resource statement — Budget estimates for 2015–16 as at Budget May 2015

213

Actual Available


$'000



$'000


$'000



Departmental appropriationPrior year appropriations2 9 - - - Departmental appropriation3 9,832 - 9,705 9,705

Total 9,841 - 9,705 9,705 Total ordinary annual services [A] 9,841 - 9,705 9,705 Other services - - - - Total - - - - Total other services [B] - - - - Total available annual appropriations [A+B] 9,841 - 9,705 9,705


Table 1.1: Safe Work Australia resource statement — Budget estimates for 2015–16 as at Budget May 2015 (continued)

1 Appropriation Bill (No.1) 2015–16.2 Estimated adjusted balance carried forward from previous year.3 Includes an amount of $0.073m in 2015-16 for the Departmental Capital Budget (refer to Table 3.2.5 for further details). For accounting purposes this amount has been designated as 'contributions by owners'.4 Estimated opening balance for special accounts (less ‘Special Public Money’ held in accounts like Other Trust Monies accounts (OTM), Services for other Government and Non-agency Bodies accounts (SOG), or Services for Other Entities and Trust Moneys accounts (SOETM). For further information on special accounts see Table 3.1.2.5 Appropriation receipts from Safe Work Australia annual and special appropriations for 2014–15 included above.Reader note: All figures are GST exclusive.

214

Actual Available


$'000



$'000


$'000


$'000Special appropriations - - - - Total special appropriations [C] - - - - Total appropriations excluding special accounts 9,841 - 9,705 9,705 Special accounts

Opening balance4 10,699 - 10,999 10,999 Appropriation receipts5 9,832 - 9,705 9,705 Non-appropriation receipts to Special Accounts 10,996 - 11,036 11,036

Total special accounts [D] 31,527 - 31,740 31,740 Total resourcing [A+B+C+D] 41,368 - 41,445 41,445

Less appropriations drawn from annual or special appropriations above and credited to special accounts - - - - and/or payments to corporate entities through annual appropriations (9,832) - (9,705) (9,705)

Total net resourcing for Safe Work Australia 31,536 - 31,740 31,740


1.3 BUDGET MEASURES

Safe Work Australia does not have any new measures since the 2014–15 Budget. For this reason Table 1.2 is not presented.

215




Government outcomes are the intended results, impacts or consequences of actions by the government on the Australian community. Commonwealth programmes are the primary vehicle by which government entities achieve the intended results of their outcome statements. Entities are required to identify the programmes which contribute to government outcomes over the Budget and forward years.Each outcome is described below together with its related programmes, specifying the performance indicators and targets used to assess and monitor the performance of Safe Work Australia in achieving government outcomes.Outcome 1: Healthier, safer and more productive workplaces through improvements to Australian work health and safety and workers’ compensation arrangements.

Outcome 1 strategySafe Work Australia works with representatives of the Commonwealth, state and territory governments, employers and employees to: support the implementation of the Australian Work Health and

Safety Strategy 2012—2022 promote community awareness and knowledge of work health and

safety and workers’ compensation support evidence informed policy, programmes and practice

through national work health and safety and workers’ compensation data, research and evaluation programmes

improve and reform work health and safety laws in Australia to provide a consistent, equitable and high level of protection to all workers, while ensuring practicability for small business and individual workers

promote consistent approaches and improved knowledge, skills and capabilities for managing health and safety hazards and risks

216


identify opportunities to improve workers’ compensation arrangements

develop nationally consistent explosives regulation cooperate and share information, expertise and experience with

international organisations

217



Table 2.1 provides an overview of the total expenses for Outcome 1 by programme.Table 2.1: Budgeted expenses for Outcome 1


218

Outcome 1: Healthier, safer and more productive workplaces through improvements to Australian work health and safety and w orkers' compensation arrangements.

2014–15Estimated

actual expenses

$'000


$'000Programme 1.1: Reform of and improvements to Australian work health and safety and workers' compensation arrangements.Departmental expenses

Departmental appropriation1 9,607 9,632 Special accounts 10,996 11,036

Expenses not requiring appropriation in the Budget year2 544 231 Total for programme 1.1 21,147 20,899

Outcome 1 Totals by appropriation typeDepartmental expenses

Departmental appropriation1 9,607 9,632 Special accounts 10,996 11,036

Expenses not requiring appropriation in the Budget year2 544 231 Total expenses for Outcome 1 21,147 20,899




Programme 1.1: Reform of and improvements to Australian work health and safety and workers’ compensation arrangements

Programme objective

Safe Work Australia has an important national role to achieve significant and continual reductions in the incidence of work-related death, injury and illness and to improve outcomes for injured workers and their employers. To be able to meet its objectives Safe Work Australia works collaboratively with regulators, industry and employee associations and the community to achieve healthy, safe and productive working lives for all Australians.Safe Work Australia is required by the Act to prepare a corporate plan every four years which deals with the outcomes to be achieved by Safe Work Australia and the strategies to be followed to achieve those outcomes. An operational plan is required to be prepared each year to outline the activities to give effect to these strategies.

Programme expenses

The work of the agency continues to focus on the objectives of Programme 1 and as prescribed by legislation. The agency has not identified any significant trends or variances over the forward years.Table 2.1.1 Programme expenses


219

2014–15 Estimated

actual$'000

2015–16Budget

$'000


$'000


$'000


$'000Special account expenses: Safe Work Australia Special Account 9,996 10,027 10,262 10,316 10,574 Annual departmental expenses:Ordinary annual services (Appropriation Bill No. 1)

9,607 9,632 9,887 10,317 10,574

Expenses not requring appropriation in the Budget year1 544 231 217 160 166



Programme 1.1 Deliverables The deliverables for Safe Work Australia are highlighted in its annual operational plan: Coordinate and monitor the implementation of the Australian Work

Health and Safety Strategy 2012–2022. Promote consistent messages on work health and safety and

workers' compensation through the implementation of the Communication and Stakeholder Engagement Strategy.

Collect, maintain, improve and report on national work health and safety and workers' compensation data through implementation of the Data and Analysis Work Plan 2015–16.

Identify new priority issues and undertake and disseminate research including on emerging issues and through implementation of the Research and Evaluation Work Plan 2015–16.

Monitor, evaluate and improve the model work health and safety laws to improve safety outcomes, address issues impeding the effective and efficient operation of the laws and remove unnecessary over-regulation.

Facilitate the development of accessible, effective and practical material to aid understanding and compliance; minimise regulatory cost; and support improved work health and safety outcomes, particularly for small business and individuals.

Improve consistency in workers' compensation arrangements through implementation of the Workers’ Compensation Work Plan 2015–16.

Develop policy proposals that will lead to nationally consistent explosives regulation.

Liaise with other countries or international organisations on matters relating to work health and safety and workers' compensation including representing Australia as appropriate.

220



Key performance indicators are framed around the operational plan. The effectiveness of key activities to assist in reducing death, injury and disease and towards meeting the outcome of healthier, safer and more productive workplaces will be measured through systematic review and evaluation. The agency’s performance measurement framework will be reviewed during .Table 2.1.1.A Programme 1.1 Key performance indicatorsQuality 2015–16 targetThe work health and safety framework continues to be developed, implemented and reviewed in accordance with COAG requirements.

COAG requirements are met.

Level of satisfaction of the Chair of Safe Work Australia with how the agency is achieving the deliverables of its operational plan.

Chair rates the performance of the agency as very good or above.

Level of satisfaction of the Members of Safe Work Australia with how the agency is achieving the deliverables of its operational plan.

80% of Members agree the agency is achieving the deliverables of its operational plan.

221




3.1.1 Movement of administered funds between yearsSafe Work Australia has no administered funds. For this reason Table 3.1.1 is not presented.

3.1.2 Special accountsSpecial accounts provide a means to set aside and record amounts used for specified purposes. Special accounts can be created by a Finance Minister’s determination under section 78 of the PGPA Act or under separate enabling legislation (section 80 of the PGPA Act refers). Table 3.1.2 shows the expected additions (receipts) and reductions (payments) for each account used by Safe Work Australia.Table 3.1.2: Estimates of special account flows and balances

(D) = Departmental

3.1.3 Australian Government Indigenous expenditureSafe Work Australia has no Australian Government Indigenous expenditure to report. For this reason Table 3.1.3 is not presented.

222

OutcomeOpening balance

$'000

Receipts

$'000

Payments

$'000

Adjustments

$'000

Closing balance

$'000

Safe Work Australia Special Account (D) 2015–16

110,999 20,742 (20,442) - 11,299

Safe Work Australia Special Account (D) 2014–15

110,699 20,828 (20,528) - 10,999

Total special accounts2015–16 Budget estimate 10,999 20,742 (20,442) - 11,299

Total special accounts2014–15 estimated actual 10,699 20,828 (20,528) - 10,999



3.2.1 Differences in entity resourcing and financial statementsThe agency receives funds from states and territories and matched appropriation funding from the Commonwealth as provided for in the IGA.3.2.2 Analysis of budgeted financial statementsThe agency is not expecting any major changes in its operations from a financial perspective. Funding arrangements are provided for in the IGA.3.2.3 Budgeted financial statements tablesTable 3.2.1: Comprehensive income statement (showing net cost of services) for the period ended 30 June

223

2014–15 Estimated

actual$'000

2015–16Budget

$'000


$'000


$'000


$'000EXPENSESEmployee benefits 12,810 12,868 13,258 13,625 14,180 Suppliers 6,753 6,752 6,851 6,969 6,929 Grants 100 100 100 100 100 Depreciation and amortisation 484 171 157 100 106 Total expenses 20,147 19,891 20,366 20,794 21,315 LESS: OWN-SOURCE INCOMEOw n-source revenueSale of goods and rendering of services 9,996 10,028 10,262 10,317 10,575 Total own-source revenue 9,996 10,028 10,262 10,317 10,575 GainsSale of assets - - - - - Other 60 60 60 60 60 Total gains 60 60 60 60 60 Total own-source income 10,056 10,088 10,322 10,377 10,635 Net cost of/(contribution by) services 10,091 9,803 10,044 10,417 10,680 Revenue from Government 9,607 9,632 9,887 10,317 10,574 Surplus/(deficit) attributable to the Australian Government (484) (171) (157) (100) (106)Total comprehensive income/(loss) (484) (171) (157) (100) (106)Total comprehensive income/(loss) attributable to the Australian Government (484) (171) (157) (100) (106)




224

2014–15$'000

2015–16$'000

2016–17$'000

2017–18$'000

2018–19$'000


- - - - -


484 171 157 100 106

Total comprehensive income/(loss) - as per the statement of comprehensive income (484) (171) (157) (100) (106)



225

2014–15 Estimated

actual$'000

2015–16Budget

$'000


$'000


$'000





Land and buildings 283 183 213 343 343Property, plant and equipment 194 167 184 144 334Intangibles 88 117 146 196 146Other non-financial assets 82 82 82 82 82

Total non-financial assets 647 549 625 765 905 Assets held for sale - - - - -


Suppliers 2,008 2,008 2,008 2,008 2,008Other payables 392 392 392 392 392


Employee provisions 3,713 4,013 4,013 4,013 4,013Total provisions 3,713 4,013 4,013 4,013 4,013 Total liabilities 6,113 6,413 6,413 6,413 6,413 Net assets 5,828 5,730 5,806 5,946 6,086



* ’Equity’ is the residual interest in assets after deduction of liabilities.Prepared on Australian Accounting Standards basis.

226

2014–15 Estimated

actual$'000

2015–16Budget

$'000


$'000


$'000



Contributed equity 4,223 4,296 4,529 4,769 5,015Reserves 859 859 859 859 859Retained surplus (accumulated deficit) 746 575 418 318 212





227

Retained earnings

$'000

Asset revaluation

reserve$'000

Other reserves

$'000


Total equity

$'000

Opening balance as at 1 July 2015Balance carried forw ard from previous period 746 859 - 4,223 5,828

Adjusted opening balance 746 859 - 4,223 5,828 Comprehensive income

Other comprehensive income - - - - - Surplus/(deficit) for the period (171) - - - (171)

Total comprehensive income (171) - - - (171)of w hich:

Attributable to the Australian Government (171) - - - (171)Transactions with owners

Contributions by ownersDepartmental Capital Budget (DCB) - - - 73 73

Sub-total transactions with owners - - - 73 73 Transfers betw een equity

Transfers betw een equity components - - - - - Estimated closing balance as at 30 June 2016 575 859 - 4,296 5,730

Less: non-controlling interests - - - - - Closing balance attributable to the Australian Government 575 859 - 4,296 5,730



228

2014–15 Estimated

actual$'000

2015–16Budget

$'000


$'000


$'000



Appropriation Receipts from Government 9,607 9,632 9,887 10,317 10,574 Sale of goods and rendering of services 10,996 11,038 11,296 11,358 11,641


Employees 12,810 12,868 13,258 13,625 13,285 Suppliers 6,730 6,752 6,852 6,850 7,935 Grants 100 100 100 100 100 Net GST Paid 687 687 695 695 695

Total cash used 20,327 20,407 20,905 21,270 22,015 Net cash from/(used by) operating activities 276 263 278 405 200 INVESTING ACTIVITIESCash received


Total cash received - - - - - Cash used

Purchase of property, plant and 225 73 233 240 246 Total cash used 225 73 233 240 246 Net cash from/(used by) investing activities (225) (73) (233) (240) (246)FINANCING ACTIVITIESCash received

Contributed equity 225 73 233 240 246 Total cash received 225 73 233 240 246 Cash used

Other 276 263 278 405 200 Total cash used 276 263 278 405 200 Net cash from/(used by) financing activities (51) (190) (45) (165) 46 Net increase/(decrease) in cash - - - - -








229

2014–15 Estimated

actual$'000

2015–16Budget

$'000


$'000


$'000



Capital budget - Bill 1 (DCB) 225 73 233 240 246

Total new capital appropriations 225 73 233 240 246Provided for:

Purchase of non-financial assets 225 73 233 240 246Annual finance lease costs - - - - -Other Items - - - - -

Total Items 225 73 233 240 246PURCHASE OF NON-FINANCIAL ASSETS

Funded by capital appropriation - DCB1 225 73 233 240 246Funded internally from departmental resources2 - - - - -

TOTAL 225 73 233 240 246RECONCILIATION OF CASH USED TO ACQUIRE ASSETS TO ASSET MOVEMENT TABLETotal purchases 225 73 233 240 246Total cash used to acquire assets 225 73 233 240 246



1 "Appropriation ordinary annual services" refers to funding provided through Appropriation Bill (No.1) 2015–16 for depreciation/amortisation expenses, DCBs or other operational expenses.

230

Buildings

$'000


equipment$'000


intangibles$'000

Total

$'000As at 1 J uly 2015

Gross book value 1,169 297 434 1,900 Accumulated depreciation/amortisation and impairment (886) (103) (346) (1,335)

Opening net book balance 283 194 88 565 Capital asset additions

Estimated expenditure on new or replacement assetsBy purchase - appropriation ordinary annual services1 - 27 46 73 Total additions - 27 46 73 Other movementsDepreciation/amortisation expense (100) (54) (17) (171)Total other movements (100) (54) (17) (171)

As at 30 J une 2016Gross book value 1,169 324 480 1,973 Accumulated depreciation/amortisation and impairment (986) (157) (363) (1,506)

Closing net book balance 183 167 117 467


Table 3.2.7: Schedule of budgeted income and expenses administered on behalf of government (for the period ended 30 June)Safe Work Australia has no income and expenses administered on behalf of government. For this reason Table 3.2.7 is not presented.Table 3.2.8 Schedule of budgeted assets and liabilities administered on behalf of government (as at 30 June) Safe Work Australia has no administered assets and liabilities. For this reason Table 3.2.8 is not presented.Table 3.2.9: Schedule of budgeted administered cash flows (for the period ended 30 June)Safe Work Australia has no administered cash flows. For this reason Table 3.2.9 is not presented.Table 3.2.10: Administered capital budget statement (for the period ended 30 June)Safe Work Australia has no administered capital purchases. For this reason Table 3.2.10 is not presented.Table 3.2.11: Statement of administered asset movements (Budget year 2015–16) Safe Work Australia has no administered non-financial assets. For this reason Table 3.2.11 is not presented.

3.2.4 Notes to the financial statementsOther gains represented in the Comprehensive Income Statement are resources received free of charge from other Commonwealth agencies.

231

Workplace Gender Equality Agency


WORKPLACE GENDER EQUALITY AGENCY




235

WGEA Budget Statements 2015–16

WORKPLACE GENDER EQUALITY AGENCY



The Workplace Gender Equality Agency (WGEA), established under the Workplace Gender Equality Act 2012 (the Act), is charged with promoting and improving gender equality in Australian workplaces. WGEA’s vision is for women and men to be equally represented, valued and rewarded.Non-public sector employers with 100 or more employees (relevant employers) are required to report to WGEA annually against standardised categories described as gender equality indicators (GEIs).This reporting data underpins initiatives to promote and improve workplace gender equality through: the provision to each relevant employer of a confidential,

customised benchmark report which will enable the employer to identify areas for improvement, compare their gender performance to their peers and track progress over time

the publication of aggregated benchmark data on an interactive data centre on the Agency’s website

the publication of a detailed report of the reporting data collected by the Agency from relevant employers including explanatory and interpretative material.

WGEA offers a citation which recognises leading workplace gender equality practice, the WGEA Employer of Choice for Gender Equality citation. This citation has been designed to align with the Act and reflect current thinking on what is leading practice in gender equality. The citation delivers significant advantage to successful applicants in enabling them to differentiate their employer brand and attract and retain top talent. The first successful applicants under the WGEA Employer of Choice for Gender Equality were named in 2014.WGEA will continue to deliver a comprehensive education programme, develop tools and resources, and drive change through innovative public awareness campaigns in key areas such as pay equity and flexible working.

237



Table 1.1 shows the total resources from all sources. The table summarises how resources will be applied by outcome and by administered and departmental classification. Table 1.1: WGEA resource statement — Budget estimates for 2015–16 as at Budget May 2015

238

Actual Available


$'000



$'000


$'000



Departmental appropriationPrior year appropriations2 1,114 742 - 742 Departmental appropriation3 5,008 - 5,132 5,132 s74 Retained revenue receipts4 190 - 100 100

Total 6,312 742 5,232 5,974 Total ordinary annual services [A] 6,312 742 5,232 5,974 Departmental non-operating

Equity injections - - - - Total other services [B] - - - - Total available annual appropriations [A+B] 6,312 742 5,232 5,974


Table 1.1: WGEA resource statement — Budget estimates for 2015–16 as at Budget May 2015 (continued)

1 Appropriation Bill (No.1) 2015–16.2 Estimated adjusted balance carried forward from previous year.3 Includes an amount of $0.197 million in 2015–16 for the Departmental Capital Budget (refer to Table 3.2.5 for further details). For accounting purposes this amount has been designated as 'contributions by owners'.4 Estimated Retained revenue receipts under section 74 of the PGPA Act.Reader note: All figures are GST exclusive.

239

Actual Available


$'000



$'000


$'000


$'000Total appropriations excluding special accounts 6,312 742 5,232 5,974 Total resourcing [A+B+C+D] 6,312 742 5,232 5,974


- - - -

and/or payments to corporate entities through annual appropriations - - - -

Total net resourcing for Workplace Gender Equality Agency 6,312 742 5,232 5,974


1.3 BUDGET MEASURES

Budget measures in Part 1 relating to the Workplace Gender Equality Agency are detailed in Budget Paper No. 2 and are summarised below. Table 1.2: Agency 2015–16 Budget measuresPart 2: MYEFO measures not previously reported in a portfolio statement

Prepared on a Government Finance Statistics (fiscal) basis.

240


2015–16$'000

2016–17$'000

2017–18$'000

2018–19$'000

Expense measures

Communications and Public Affairs Savings 1.1

Departmental expenses (18) (36) (36) (36) (36)

Total (18) (36) (36) (36) (36) Total expense measures

Departmental (18) (36) (36) (36) (36)

Total (18) (36) (36) (36) (36)




Government outcomes are the intended results, impacts or consequences of actions by the government on the Australian community. Commonwealth programmes are the primary vehicle by which government entities achieve the intended results of their outcome statements. Entities are required to identify the programmes which contribute to government outcomes over the Budget and forward years.Each outcome is described below together with its related programmes, specifying the performance indicators and targets used to assess and monitor the performance of the Workplace Gender Equality Agency in achieving government outcomes.Outcome 1: Promote and improve gender equality in Australian workplaces including through the provision of advice and assistance to employers and the assessment and measurement of workplace gender data.


Table 2.1 provides an overview of the total expenses for Outcome 1 by programme.

241


Table 2.1: Budgeted expenses for Outcome 1


242

Outcome 1: Promote and improve gender equality in Australian workplaces including through the provision of advice and assistance to employers and the assessment and measurement of w orkplace gender data

2014–15Estimated

actual expenses

$'000


$'000Programme 1.1: Workplace Gender EqualityDepartmental expenses

Departmental appropriation1 5,198 5,035 Expenses not requiring appropriation in the Budget year2 676 663


Departmental appropriation1 5,198 5,035 Expenses not requiring appropriation in the Budget year2 676 663 Total expenses for Outcome 1 5,874 5,698




Programme 1.1: Workplace Gender Equality

Programme objectiveThe objective of this programme is to improve gender equality in Australian workplaces. Gender equality refers to Australian women and men being offered the same opportunities in the workplace, including equal remuneration and the ability to balance paid work with caring and family responsibilities.The programme will focus on promoting and improving gender equality and outcomes for both women and men in the workplace through activities which aim to: promote amongst employers the elimination of discrimination on

the basis of gender in relation to employment matters foster, workplace consultation between employers and employees on issues concerning gender equality in employment and in the workplace

improve the productivity and competiveness of Australian business through the advancement of gender equality in employment and in the workplace

remove barriers to the full and equal participation of women in the workforce.

Key activities include: advising and assisting employers to promote and improve gender

equality in the workplace including providing advice and assistance on the collection and analysis of workplace data to underpin measures to improve gender equality outcomes

undertaking research, educational and other programmes designed to promote and improve gender equality in the workplace

promoting and contributing to understanding and acceptance, and public discussion, of gender equality in the workplace

reviewing compliance with the Act by relevant employers.Table 2.1.1 Programme expenses


243

2014–15 Estimated

actual$'000

2015–16Budget

$'000


$'000


$'000


$'000Programme support 5,198 5,035 5,053 5,101 5,151 Expenses not requring appropriation in the Budget year1 676 663 616 461 364




The Agency will support improved workplace gender equality by: assisting relevant employers to report to the Agency, through the

provision of:– a secure online web portal– education and guidance materials on reporting– telephone assistance.

educating employers on improving gender equality outcomes, through the provision of:– education and materials on interpreting workplace data and on

strategies for removing barriers to workplace gender equality– a set of benchmarks that will enable relevant employers to

consider and improve their workplace outcomes and practices over time and in relation to their peers.

promoting and contributing to understanding and acceptance, and public discussion, of gender equality in the Australian workplace, through:– the recognition of good gender equality performance– contributions to public discussion of gender equality in the

workplace including through speeches and events– an improved digital presence.

using gender equality data to improve workplace gender equality, through:– making publicly available aggregated benchmark data– the establishment of a database of reported data to inform the

Agency’s activities and advice to the Minister as required– the preparation of biennial reports to the Minister on overall

progress achieved in relation to the GEIs, beginning with the two-year period ending on 31 May 2016.

244


fostering compliance with the reporting and transparency provisions of the Act, through:– contacting relevant employers who are not meeting their

obligations and assisting them to become compliant– undertaking reviews of relevant employers’ compliance with the

Act– naming non-compliant employers in a report to the Minister or

by electronic or other means.

245



Table 2.1.1.A Education Deliverable 2014–

15Revise

d Budget

2015–16

Budget

2016–17

Forward

Estimate

2017–18

Forward

Estimate

2018–19

Forward

Estimate

Education participants 1351 1419 1489 1564 1642Educational resources available on Agency website

600 66 73 80 88

Benchmarks developed 43 43 43 43 43Table 2.1.1.B Understanding and acceptance and public discussion Deliverable 2014–

15Revised Budget

2015–16

Budget

2016–17

Forward

Estimate

2017–18

Forward

Estimate

2018–19

Forward

Estimate

Speeches and events delivered

52 52 52 52 52

Employer of choice organisations

80 88 97 106 117

Table 2.1.1.C Compliance Deliverable 2014–15

Revised Budget

2015–16

Budget

2016–17

Forward

Estimate

2017–18

Forward

Estimate

2018–19

Forward

Estimate

Employers registered with the Agency as relevant employers

11,700 11,759 11,817 11,876 11,936

Employer reviews conducted

- 10 11 12 13

246


Table 2.1.1.D Reporting by AgencyDeliverable 2014–

15Revised Budget

2015–16

Budget

2016–17

Forward

Estimate

2017–18

Forward

Estimate

2018–19

Forward

Estimate

Biennial report to the Minister

- - 1 - 1

247



percentage of women in leadership including governing board members, key management personnel (KMP) and other managers

percentage of employers conducting gender remuneration gap analyses

percentage of employers with a strategy or policy to support employees with family and caring responsibilities

number of visits to the Agency website.Table 2.1.1.E Programme 1.1 Key performance indicatorsKey performance indicators

2014–15

Revised Budget

2015–16

Budget

2016–17

Forward

Estimate

2017–18

Forward

Estimate

2018–19

Forward

Estimate

Percentage of women in leadership roles in relevant employers- Governing board members

23.7% 24.5% 25.3% 26.1% 26.9%

- KMP 26.1% 26.5% 26.9% 27.3% 27.7%- Other managers 36.8% 38% 39% 40% 41%Percentage of relevant employers that have conducted gender remuneration gap analyses

24% 25% 25.5% 26% 27%

Percentage of relevant employers with a strategy or policy to support employees with family or caring responsibilities

55.1% 56% 57% 58% 59%

Number of visits to Agency website

200,000 210,000 220,500 231,525

243,101

248




3.1.1 Movement of administered funds between yearsWGEA does not have any administered funds. For this reason Table 3.1.1 is not presented. 3.1.2 Special accountsWGEA does not have any special accounts. For this reason Table 3.1.2 is not presented.3.1.3 Australian Government Indigenous expenditureWGEA does not have any Australian Government Indigenous expenditure. For this reason Table 3.1.3 is not presented.

249



3.2.1 Differences in entity resourcing and financial statementsTable 3.2.1 recognises the full year revenue for 2015–16 on the basis of accrual accounting principles.3.2.2 Analysis of budgeted financial statementsThe Workplace Gender Equality Agency is budgeting for an operating result equal to the unappropriated depreciation and amortisation expense in 2015–16 and the three forward years.Total revenues are estimated to be $5 million in 2015–16, and total expenses to be $5.7 million.Total assets for 2015–16 are estimated to be $3 million. The majority of the assets represent receivables (appropriations receivable) and intangibles.Total liabilities for 2015–16 are estimated to be $1 million. The largest liabilities are accrued employee entitlements.

250



251

2014–15 Estimated

actual$'000

2015–16Budget

$'000


$'000


$'000


$'000EXPENSESEmployee benefits 3,226 3,417 3,651 3,724 3,771Suppliers 1,992 1,638 1,392 1,367 1,370Depreciation and amortisation 646 633 616 461 364Finance costs 10 10 10 10 10Total expenses 5,874 5,698 5,669 5,562 5,515LESS: OWN-SOURCE INCOMEOw n-source revenueOther 190 100 100 100 100Total own-source revenue 190 100 100 100 100GainsOther 30 30 30 30 30Total gains 30 30 30 30 30Total own-source income 220 130 130 130 130Net cost of/(contribution by) services 5,654 5,568 5,539 5,432 5,385Revenue from Government 5,008 4,935 4,923 4,971 5,021Surplus/(deficit) attributable to the Australian Government (646) (633) (616) (461) (364)Total comprehensive income/(loss) (646) (633) (616) (461) (364)Total comprehensive income/(loss) attributable to the Australian Government (646) (633) (616) (461) (364)




252

2014–15$'000

2015–16$'000

2016–17$'000

2017–18$'000

2018–19$'000


- - - - -


646 633 616 461 364

Total comprehensive income/(loss) - as per the statement of comprehensive income (646) (633) (616) (461) (364)



253

2014–15 Estimated

actual$'000

2015–16Budget

$'000


$'000


$'000



Cash and cash equivalents 446 446 446 446 446 Trade and other receivables 494 494 494 494 494

Total financial assets 940 940 940 940 940 Non-financial assets

Land and buildings 548 318 88 - - Property, plant and equipment 198 139 97 68 48 Intangibles 1,758 1,611 1,462 1,322 1,183 Other non-financial assets 2 2 2 2 2



Suppliers 63 63 63 63 63 Other payables 491 489 488 488 488

Total payables 554 552 551 551 551 Interest bearing liabilities

Leases 54 54 54 54 54Total interest bearing liabilities 54 54 54 54 54 Provisions

Employee provisions 379 381 382 382 382 Other provisions 10 10 10 10 10

Total provisions 389 391 392 392 392 Liabilities included in disposal groups held for sale - - - - -

Total liabilities 997 997 997 997 997 Net assets 2,449 2,013 1,592 1,335 1,176



*’Equity’ is the residual interest in assets after deduction of liabilities.Prepared on Australian Accounting Standards basis.

254

2014–15 Estimated

actual$'000

2015–16Budget

$'000


$'000


$'000



Contributed equity 3,659 3,856 4,051 4,255 4,460Reserves 40 40 40 40 40Retained surplus (accumulated deficit) (1,250) (1,883) (2,499) (2,960) (3,324)





255

Retained earnings

$'000

Asset revaluation

reserve$'000

Other reserves

$'000


Total equity

$'000

Opening balance as at 1 July 2015Balance carried forw ard from previous period (1,250) 40 - 3,659 2,449 Adjustment for changes in accounting policies - - - - -

Adjusted opening balance (1,250) 40 - 3,659 2,449 Comprehensive income

Surplus/(deficit) for the period (633) - - - (633)Total comprehensive income (633) - - - (633)

of w hich:Attributable to the Australian Government (633) - - - (633)


Departmental Capital Budget (DCB) - - - 197 197Sub-total transactions with owners - - - 197 197

Transfers betw een equityTransfers betw een equity components - - - - -

Estimated closing balance as at 30 June 2016 (1,883) 40 - 3,856 2,013

Less: non-controlling interests - - - - -Closing balance attributable to the Australian Government (1,883) 40 - 3,856 2,013



256

2014–15 Estimated

actual$'000

2015–16Budget

$'000


$'000


$'000



Appropriations 5,452 4,925 4,913 4,961 5,011Other 190 100 100 100 100


Employees 3,226 3,415 3,650 3,724 3,771Suppliers 1,962 1,608 1,362 1,337 1,340Other - 2 1 - -

Total cash used 5,188 5,025 5,013 5,061 5,111Net cash from/(used by) operating activities 454 - - - -INVESTING ACTIVITIESCash received

Other - - - - -Total cash received - - - - -Cash used

Purchase of property, plant and equipment 190 197 195 204 205

Total cash used 190 197 195 204 205Net cash from/(used by) investing activities (190) (197) (195) (204) (205)




257

2014–15 Estimated

actual$'000

2015–16Budget

$'000


$'000


$'000



Contributed equity - 197 195 204 205Total cash received - 197 195 204 205Cash used

Other - - - - -Total cash used - - - - -Net cash from/(used by) financing activities - 197 195 204 205Net increase/(decrease) in cash held 264 - - - -









258

2014–15 Estimated

actual$'000

2015–16Budget

$'000


$'000


$'000



Capital budget - Bill 1 (DCB) - 197 195 204 205

Total new capital appropriations - 197 195 204 205Provided for:

Purchase of non-financial assets - 197 195 204 205Total Items - 197 195 204 205


Funded by capital appropriations1 - - - - -Funded by capital appropriation - DCB2 190 197 195 204 205

TOTAL 190 197 195 204 205RECONCILIATION OF CASH USED TO ACQUIRE ASSETS TO ASSET MOVEMENT TABLETotal purchases 190 197 195 204 205Total cash used to acquire assets 190 197 195 204 205



1 "Appropriation ordinary annual services" refers to funding provided through Appropriation Bill (No.1) 2015–16 for depreciation / amortisation expenses, DCBs or other operational expenses. Prepared on Australian Accounting Standards basis.

259

Buildings$'000


equipment$'000


intangibles$'000

Total$'000

As at 1 J uly 2015Gross book value 1,149 401 2,838 4,388Accumulated depreciation/amortisation and impairment (601) (203) (1,080) (1,884)

Opening net book balance 548 198 1,758 2,504Capital asset additions

Estimated expenditure on new or replacement assetsBy purchase - appropriation ordinary annual services1 - - 197 197Total additions - - 197 197Other movementsDepreciation/amortisation expense (230) (59) (344) (633)Total other movements (230) (59) (344) (633)

As at 30 J une 2016Gross book value 1,149 401 3,035 4,585Accumulated depreciation/amortisation and impairment (831) (262) (1,424) (2,517)

Closing net book balance 318 139 1,611 2,068


Table 3.2.7: Schedule of budgeted income and expenses administered on behalf of Government (for the period ended 30 June)WGEA has no income and expenses administered on behalf of government. For this reason Table 3.2.7 is not presented.Table 3.2.8: Schedule of budgeted assets and liabilities administered on behalf of Government (as at 30 June)WGEA has no administered assets and liabilities. For this reason Table 3.2.8 is not presented.Table 3.2.9: Schedule of budgeted administered cash flows (for the period ended 30 June)WGEA has no administered cash flows. For this reason Table 3.2.9 is not presented.Table 3.2.10 Administered capital budget statement (for the period ended 30 June)WGEA has no administered capital purchases. For this reason Table 3.2.10 is not presented.Table 3.2.11 Statement of administered asset movements (Budget year 2015–16)WGEA has no administered non-financial assets. For this reason Table 3.2.11 is not presented.3.2.4 Notes to the financial statementsThe Agency budget statements have been prepared on an accrual accounting basis, having regard to the Statement of Accounting Concepts, and in accordance with: The Finance Minister’s Orders Australian Accounting Standards and Interpretations issued by the

Australian Accounting Standards Board.All assets are initially recorded at cost. Property, plant and equipment and other infrastructure assets are periodically revalued at their fair value.

260

Glossary

PORTFOLIO GLOSSARY

Accrual Accounting System of accounting where items are brought to account and included in the financial statements as they are earned or incurred, rather than as they are received or paid.

Additional Estimates Where amounts appropriated at Budget time are insufficient, Parliament may appropriate more funds to portfolios through the Additional Estimates Acts.

Additional Estimates Bills or Acts

These are Appropriation Bills 3 and 4, and a separate Bill for the Parliamentary Departments [Appropriations (Parliamentary Departments) Bill (No. 2)]. These Bills are introduced into Parliament sometime after the Budget Bills.

Administered Items Expenses, revenues, assets or liabilities managed by agencies on behalf of the Commonwealth. Agencies do not control administered items. Administered expenses include grants, subsidies and benefits. In many cases, administered expenses fund the delivery of third party outputs.

Appropriation An authorisation by Parliament to spend moneys from the Consolidated Revenue Fund for a particular purpose.

Annual Appropriation Two Appropriation Bills are introduced into Parliament in May and comprise the Budget for the financial year beginning 1 July. Further Bills are introduced later in the financial year as part of the additional estimates. Parliamentary departments have their own appropriations.

Assets Assets are physical objects and legal rights it is expected will provide benefits in the future or alternatively items of value owned by an Agency.

Budget Measure A decision by Cabinet or Ministers and has resulted in a cost or savings to outlays.

Capital expenditure Expenditure by an agency on capital projects, for example purchasing a building.

Consolidated Revenue Fund

Section 81 of the Constitution stipulates that all revenue raised or money received by the Commonwealth forms the one consolidated revenue fund (CRF). The CRF is not a bank account. The Official Public Account reflects most of the operations of the CRF.

Departmental items Assets, liabilities, revenues and expenses that are controlled by the agency in providing its outputs. Departmental items would generally include computers, plant and equipment assets used by agencies in providing goods and services and most

261

Glossary

employee expenses, supplier costs and other administrative expenses incurred.

Depreciation Apportionment of an asset’s capital value as an expense over its estimated useful life to take account of normal usage, obsolescence, or the passage of time.

Effectiveness indicators

Measures the joint or independent contribution of outputs and administered items to the achievement of their specified outcome.

Equity or net assets Residual interest in the assets of an entity after deduction of its liabilities.

Expenses Total value of all of the resources consumed in producing goods and services or the loss of future economic benefits in the form of reductions in assets or increases in liabilities of an entity.

Fair value Valuation methodology: The amount for which an asset could be exchanged or a liability settled, between knowledgeable and willing parties in an arm’s length transaction. The fair value can be affected by the conditions of the sale, market conditions and the intentions of the asset holder.

Financial Management and Accountability (FMA) Act 1997

The FMA Act was replaced by the Public Governance, Performance and Accountability Act 2013 on 1 July 2014.

Forward estimates A system of rolling three year financial estimates. After the budget is passed, the first year of the forward estimates becomes the base for the next year’s budget bid, and another out-year is added to the forward estimates.

Liabilities Liabilities represent amounts owing on goods or services that have been received but not yet paid for. A liability shows the future commitment of the Agency’s assets.

Net annotated appropriation (Section 74 Receipts)

Section 74 receipts, also known as net annotated appropriations, are a form of appropriation which allows a department access to certain money it receives in payment of services. These monies are known as Section 74 Receipts, reflecting their authority under Section 74 of the PGPA Act.

Operating result Equals revenue less expenses.Outcomes The government's objectives in each portfolio area.

Outcomes are desired results, impacts or consequences for the Australian community as influenced by the actions of the Australian Government. Actual outcomes are assessments of the end-results or impacts actually achieved.

262

Glossary

Public Governance, Performance and Accountability Act 2013 PGPA Act)

The PGPA Act replaced the Financial Management and Accountability Act 1997 (FMA Act) and the Commonwealth Authorities and Companies Act 1997 (CAC Act) on 1 July 2014. As the primary piece of Commonwealth resource management legislation, the PGPA Act establishes a coherent system of governance and accountability for public resources, with an emphasis on planning, performance and reporting. The Act applies to all Commonwealth entities and Commonwealth companies.

Portfolio Budget Statements

Statements prepared by portfolios to explain the budget appropriations in terms of outcomes.

Receipts The total or gross amount received by the Australian Government. Each receipt item is either revenue, an offset within outlays, or a financing transaction. Receipts include taxes, interest, charges for goods and services, borrowings and Government Business Enterprise (GBE) dividends received.

Revenue Total value of resources earned or received to cover the production of goods and services.

Section 74 Receipts See net annotated appropriation.Special Account Special accounts provide a means to set aside and

record amounts used for specified purposes. Special accounts can be created by a Finance Minister’s determination under section 78 of the PGPA Act or under separate enabling legislation (section 80 of the PGPA Act refers).

Special Appropriations (including Standing Appropriations)

An amount of money appropriated by a particular Act of Parliament for a specific purpose and number of years. For special appropriations the authority to withdraw funds from the Consolidated Revenue Fund does not generally cease at the end of the financial year. Standing appropriations are a sub-category consisting of ongoing special appropriations — the amount appropriated will depend on circumstances specified in the legislation.

263

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