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Estimates—Portfolio additional estimates statements—Portfolios and executive departments—Industry, Innovation and Science portfolio—2015-16


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Portfolio Additional Estimates Statements 2015-16

Industry, Innovation and Science Portfolio

Explanations of Additional Estimates 2015-16

© Commonwealth of Australia 2016

ISBN 9781 76044 1258

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iii

President of the Senate Australian Senate Parliament House CANBERRA ACT 2600

Speaker House of Representatives Parliament House CANBERRA ACT 2600

Dear Mr President Dear Mr Speaker

We hereby submit Portfolio Additional Estimates Statements in support of the 2015-16 Additional Estimates for the Industry, Innovation and Science Portfolio.

These statements have been developed, and are submitted to the Parliament, as a statement on the funding requirements being sought for the Portfolio.

We present these statements by virtue of our ministerial responsibility for accountability to the Parliament and, through it, the public.

Yours sincerely

Christopher Pyne Josh Frydenberg

iv

ABBREVIATIONS AND CONVENTIONS

The following notations may be used:

NEC/nec not elsewhere classified

- nil

.. not zero, but rounded to zero

na not applicable (unless otherwise specified)

nfp not for publication

$m $ million

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.

Enquiries

Should you have any enquiries regarding this publication please contact the Chief Financial Officer, Department of Industry, Innovation and Science on (02) 6213 6000.

Links to Portfolio Budget Statements (including Portfolio Additional Estimates Statements and Portfolio Supplementary Additional Estimates Statements) can be located on the Australian Government Budget website at www.budget.gov.au.

USER GUIDE TO THE

PORTFOLIO ADDITIONAL ESTIMATE STATEMENTS

vii

USER GUIDE

The purpose of the 2015-16 Portfolio Additional Estimates Statements (PAES), like that of the 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. The focus of the PAES differs from the PB Statements in one important aspect. While the PAES include an Entity Resource Statement to inform Parliament of the revised estimate of the total resources available to an entity, the focus of the PAES is on explaining the changes in resourcing by outcome(s) since the Budget. As such, the PAES provides information on new measures and their impact on the financial and/or non-financial planned performance of programmes supporting those outcomes.

The PAES facilitate understanding of the proposed appropriations in Appropriation Bills (Nos. 3 and 4) 2015-16. In this sense the PAES is declared by the Additional Estimates Appropriation Bills to be a ‘relevant document’ to the interpretation of the Bills according to section 15AB of the Acts Interpretation Act 1901.

Whereas the Mid-Year Economic and Fiscal Outlook (MYEFO) 2015-16 is a mid-year budget report which provides updated information to allow the assessment of the Government’s fiscal performance against its fiscal strategy, the PAES update the most recent budget appropriations for entities within the portfolio.

User Guide

viii

Structure of the Portfolio Additional Estimates Statements

The PAES are presented in three parts with subsections.

User guide

Provides a brief introduction explaining the purpose of the PAES.

Portfolio overview

Provides an overview of the portfolio, including a chart that outlines the outcomes for entities in the portfolio.

Entity Additional Estimates Statements

A statement (under the name of the entity) for each entity affected by Additional Estimates.

Section 1: Entity overview and resources This section details the changes in total resources available to an entity, the impact of any measures since Budget, and impact of

Appropriation Bills Nos. 3 and 4.

Section 2: revisions to outcomes and planned performance

This section details changes to Government outcomes and/or changes to the planned performance of entity programmes.

Section 3: Explanatory tables and budgeted financial statements

This section contains updated explanatory tables on special account flows and staffing levels and revisions to the budgeted financial statements.

ix

CONTENTS

Portfolio overview ..................................................................................................... 3

Department of Industry, Innovation and Science .......................................................... 9

Commonwealth Scientific and Industrial Research Organisation ................................ 53

PORTFOLIO OVERVIEW

3

PORTFOLIO OVERVIEW

The Industry, Innovation and Science portfolio was established by the 21 and 30 September 2015 Administrative Arrangements Orders.

The structure of the new portfolio is set out on the following page. It incorporates elements of the former Industry and Science portfolio as well as responsibility for Northern Australia policy and coordination and national issues relating to the digital economy.

Portfolio Overview

4

Figure 1: Industry, Innovation and Science portfolio structure

Portfolio Overview

5

Portfolio resources

Table 1 shows those entities reporting in the PAES and the additional resources provided to the portfolio in the 2015-16 budget year, by entity.

Table 1: Portfolio Resources (2015-16 Additional Estimates) Appropriation Bill No. 3 ($m)

Appropriation Bill No. 4 ($m)

Special

appropriation ($m)

Receipts ($m)

Total ($m)

Department of Industry, Innovation and Science Administered appropriations 24.851 - 38.562 4.094 67.507

Departmental appropriations - 2.857 - - 2.857

Total: 70.364

Commonwealth Scientific and Industrial Research Organisation Administered appropriations - - - - -

Departmental appropriations 0.600 - - 0.194 0.794

Total: 0.794

Portfolio total 71.158

71.158 Additional resources available within portfolio:

ENTITY ADDITIONAL ESTIMATES STATEMENTS

Department of Industry, Innovation and Science ................................................... 9

Commonwealth Scientific and Industrial Research Organisation ....................... 53

9

DEPARTMENT OF INDUSTRY, INNOVATION AND SCIENCE Section 1: Entity overview and resources ............................................................. 11

1.1 Strategic direction statement .............................................................................. 11

1.2 Entity resource statement ................................................................................... 11

1.3 Entity measures ................................................................................................. 15

1.4 Additional estimates and variations ..................................................................... 18

1.5 Breakdown of additional estimates by appropriation bill ...................................... 22

Section 2: Revisions to outcomes and planned performance .............................. 23

2.1 Outcomes and performance information ............................................................. 23

Section 3: Explanatory tables and budgeted financial statements ....................... 33

3.1 Explanatory tables .............................................................................................. 33

3.2 Budgeted financial statements ............................................................................ 35

11

DEPARTMENT OF INDUSTRY, INNOVATION AND SCIENCE

Section 1: Entity overview and resources

1.1 STRATEGIC DIRECTION STATEMENT

The Innovation, Industry and Science Portfolio was established by the Administrative Arrangements Orders of 21 and 30 September 2015. In addition to the strategic priorities identified in the 2015-16 Industry Portfolio Budget Statements, the department will also be leading the delivery of the Government’s National Innovation and Science Agenda.

Innovation and science are at the heart of the Government’s economic plan, and through the Agenda, the Government will invest $1.1 billion to incentivise innovation and entrepreneurship, reward risk taking, and promote science, maths and computing in schools to drive the smart ideas that create business growth, local jobs and global success.

The department also has a key role in delivering on the initiatives announced in the Government’s Our North, Our Future: White Paper on Developing Northern Australia, including through the establishment of the Northern Australia Infrastructure Facility and the new headquarters for the Office of Northern Australia.

In addition to implementing the policies contained in these packages, the department will continue to focus on the Entrepreneurs’ Programme, Growth Centres, Cooperative Research Centres, helping businesses transition and offering streamlined programme delivery and service delivery arrangements, reflecting the department’s key role in transitioning industry and business to the new economy.

1.2 ENTITY RESOURCE STATEMENT

The Entity Resource Statement details the resourcing for the Department of Industry, Innovation and Science at Additional Estimates. Table 1.1 outlines the total resourcing available from all sources for the 2015-16 Budget year, including variations through Appropriation Bill No. 3 and No. 4, special appropriations and special accounts.

Entity Additional Estimates Statements — DIIS

12

Table 1.1: Industry, Innovation and Science resource statement — Additional Estimates for 2015-16 as at Additional Estimates February 2016 Actual available appropriation

2014-15 $'000

Estimate as at Budget 2015-16 $'000

Proposed Additional Estimate 2015-16

$'000

Total estimate at Additional Estimates 2015-16

$'000

Ordinary annual services Departmental appropriation

Prior year departmental appropriation1 149,105 79,227 - 79,227

Departmental appropriation2,3 502,483 428,096 281 428,377

s74 Retained Revenue Receipts4 60,996 56,276 10,838 67,114

Total 712,584 563,599 11,119 574,718

Administered expenses Outcome 1 1,581,959 823,273 (155,137) 668,136

Payments to corporate entities5 1,222,164 946,864 600 947,464

Total 2,804,123 1,770,137 (154,537) 1,615,600

Total ordinary annual services [A] 3,516,707 2,333,736 (143,418) 2,190,318

Other services Departmental non-operating

Prior year departmental equity1 54,099 41,562 - 41,562

Equity injections 12,514 32,512 2,857 35,369

Total 66,613 74,074 2,857 76,931

Administered non-operating

Prior year appropriations1 49,607 24,177 - 24,177

Administered assets and liabilities - 30,938 - 30,938

Payments to corporate entities - non-operating 96,439 35,916 - 35,916

Total 146,046 91,031 - 91,031

Total other services [B] 212,659 165,105 2,857 167,962

Total available annual appropriations 3,729,366 2,498,841 (140,561) 2,358,280

Special appropriations Special appropriations limited by criteria/entitlement Offshore Minerals Act 1994 (Fees) - 60 - 60

Public Governance, Performance and Accountability Act 2013 - s77 3,448 - - -

Trade Support Loans Act 2014 - s104 Appropriation 22,049 - - -

Entity Additional Estimates Statements — DIIS

13

Table 1.1: Industry, Innovation and Science Resource Statement — Additional Estimates for 2015-16 as at Additional Estimates February 2016 (continued) Actual available appropriation

2014-15 $'000

Estimate as at Budget 2015-16 $'000

Proposed Additional Estimate 2015-16

$'000

Total estimate at Additional Estimates 2015-16

$'000

Special appropriations limited by amount Australian Renewable Energy Agency Act 2011 6 244,493 - 14,671 14,671

Automotive Transformation Scheme Act 2009 251,757 227,624 - 227,624

Offshore Petroleum and Greenhouse Gas Storage Act 2006 - s682(6) payments to NOPSEMA 36,193 37,869 - 37,869

Textile, Clothing and Footwear Investment and Innovation Programs Act 1999 24,251 - 23,891 23,891

Total special appropriations [C] 582,191 265,553 38,562 304,115

Total appropriations excluding Special Accounts 4,311,557 2,764,394 (101,999) 2,662,395 Special Accounts7 Opening balance 226,913 180,834 62,106 242,940

Appropriation Receipts 36,833 91,835 - 91,835

Non-appropriation receipts to Special Accounts 45,259 39,501 (6,305) 33,196

Total Special Account [D] 309,005 312,170 55,801 367,971

Total resourcing [A+B+C+D] 4,620,562 3,076,564 (46,198) 3,030,366

Less appropriations drawn from annual or special appropriations above and credited to special accounts (36,833) (91,835) - (91,835)

and/or payments to corporate entities through annual or special appropriations (1,318,603) (982,780) (600) (983,380)

Total net resourcing for Industry, Innovation and Science 3,265,126 2,001,949 (46,798) 1,955,151

1 Actual adjusted balance carried from previous year for annual and equity appropriations. 2 Includes an amount of $27.838 million in 2014-15 and $28.469 million in 2015-16 for the Departmental

Capital Budget. 3 The resourcing figures include amounts transferred to and from other agencies as a result of the 21 and

30 September 2015 Administrative Arrangements Orders. Refer to Table 1.4 for further details. 4 Estimated retained revenue receipts under section 74 of the Public Governance, Performance and

Accountability (PGPA) Act 2013. 5 Payments to corporate entities in 2014-15 included special appropriation payments to the Australian

Renewable Energy Agency and the National Offshore Petroleum Safety and Environment Management Authority. 6 Responsibility for the Australian Renewable Energy Agency Act 2011 transferred to the Department of

Environment as a result of the 21 September 2015 Administrative Arrangements Order. 7 Refer to Table 3.1.1 for further information on special accounts. Reader note: All figures are GST exclusive.

Entity Additional Estimates Statements — DIIS

14

Third party payments from and on behalf of other entities Estimate at Budget 2015-16

$'000

Estimate at Additional Estimates 2015-16

$'000

Payments made to corporate entities within the Portfolio

Ordinary Annual Services1 Australian Institute of Marine Science 40,483 40,483

Australian Nuclear Science and Technology Organisation 156,700 156,700

Commonwealth Scientific and Industrial Research Organisation 749,681 750,281

Total ordinary annual services 946,864 947,464

Other services Australian Nuclear Science and Technology Organisation 35,916 35,916

Total other services 35,916 35,916

Total payments to corporate entities within the Portfolio 982,780 983,380 1This excludes special appropriation payments to the Australian Renewable Energy Agency and the National Offshore Petroleum Safety and Environment Management Authority.

Entity Additional Estimates Statements — DIIS

15

1.3 ENTITY MEASURES

Table 1.2 summarises new Government measures taken since the 2015-16 Budget. The table is split into revenue, expense and capital measures, with the affected programme identified.

Table 1.2: Entity 2015-16 measures since Budget

Programme 2015-16 $'000 2016-17 $'000

2017-18 $'000

2018-19 $'000

Expense measures Administration of the Australian Jobs Act 2013 — continuation1 3

Administered expenses - - - -

Departmental expenses 1,544 1,667 1,798 1,974

Total 1,544 1,667 1,798 1,974

Country of Origin Labelling Information Campaign2 2

Administered expenses 6,900 - - -

Departmental expenses - - - -

Total 6,900 - - -

National Innovation and Science Agenda — advancing Australia's cyber

security 3

2

Administered expenses - 3,950 6,500 10,500

Departmental expenses - 272 274 276

Total - 4,222 6,774 10,776

— Business Research and Innovation Initiative 1

Administered expenses - 2,450 9,200 3,550

Departmental expenses - 1,524 860 1,146

Total - 3,974 10,060 4,696

— enhancing research-business

links 4

2

Administered expenses - 2,874 6,401 7,121

Departmental expenses - 356 478 481

Total - 3,230 6,879 7,602

Entity Additional Estimates Statements — DIIS

16

Table 1.2: Entity 2015-16 measures since Budget (continued) Programme 2015-16 $'000 2016-17

$'000

2017-18 $'000

2018-19 $'000

National Innovation and Science Agenda — Global Innovation Strategy 1

Administered expenses - 5,036 6,536 6,536

Departmental expenses - - - -

Total - 5,036 6,536 6,536

— Innovation and Science Australia 3

Administered expenses - - - -

Departmental expenses 1,098 2,256 2,469 2,283

Total 1,098 2,256 2,469 2,283

— inspiring all Australians in STEM 1

Administered expenses 25,500 12,750 8,250 12,225

Departmental expenses - 416 418 3,291

Total 25,500 13,166 8,668 15,516

— quantum computing 1

Administered expenses - 5,000 5,000 5,000

Departmental expenses - 375 - -

Total - 5,375 5,000 5,000

— supporting critical research

infrastructure 5

1

Administered expenses - 4,000 3,600 39,000

Departmental expenses - - - 5,000

Total - 4,000 3,600 44,000

— supporting incubators 4

2

Administered expenses - 1,000 2,000 2,000

Departmental expenses - 1,590 810 680

Total - 2,590 2,810 2,680

Next Generation Manufacturing Investment

Programme — expansion 6

2

Administered expenses - 6,000 13,500 8,400

Departmental expenses - - - -

Total - 6,000 13,500 8,400

Our North, Our Future — business, trade

and investment gateway 7

1,2,3

Administered expenses - - - -

Departmental expenses - - - -

Total - - - -

Entity Additional Estimates Statements — DIIS

17

Table 1.2: Entity 2015-16 measures since Budget (continued) Programme 2015-16 $'000 2016-17

$'000

2017-18 $'000

2018-19 $'000

Tasmanian Jobs and Investment Fund — establishment8 2

Administered expenses 3,600 5,500 5,500 -

Departmental expenses - - - -

Total 3,600 5,500 5,500 -

Total expense measures Administered 36,000 48,560 66,487 94,332

Departmental 2,642 8,456 7,107 15,131

Total 38,642 57,016 73,594 109,463

Capital measures Country of Origin Labelling Information Campaign2 3

Administered capital - - - -

Departmental capital 700 - - -

Total 700 - - -

Total capital measures Administered - - - -

Departmental 700 - - -

Total 700 - - -

Prepared on a Government Financial Statistics (fiscal) basis 1 Savings from this measure were provided for by the Government in the 2014-15 Budget. The above figures reflect the funding retained by the department to continue the administration of the Australian Jobs Act

2013.

2 This measure was included as a 'decision taken but not yet announced' in the 2015-16 MYEFO. Total funding for this proposal is $14.5 million, with the included figure representing the additional funding received by the department.

3 This measure will form part of the Industry Growth Centres Initiative. 4 This measure will form part of the Entrepreneurs' Programme. 5

This measure will form part of the Square Kilometre Array Radio Telescope Project. 6 Funding for the Regional Infrastructure Programme, including amounts transferred from the Department of the Treasury, has been reallocated to the Next Generation Manufacturing Investment Programme. 7

This measure will provide $38.9 million to the department to support the development of northern Australia. Refer to Table 1.3 for further details. 8 This amount reflects the additional funding received by the department for the Tasmanian Jobs and

Investment Fund. Refer to Table 1.3 and page 200 of the 2015-16 MYEFO for further details.

Entity Additional Estimates Statements — DIIS

18

1.4 ADDITIONAL ESTIMATES AND VARIATIONS

The following tables detail the changes to the resourcing for the Department of Industry, Innovation and Science at Additional Estimates, by outcome. Table 1.3 details the Additional Estimates and variations resulting from new measures since the 2015-16 Budget in Appropriation Bills Nos. 3 and 4. Table 1.4 details Additional Estimates or variations through other factors, such parameter adjustments.

Table 1.3: Additional estimates and variations to outcomes from measures since 2015-16 Budget Programme impacted

2015-16 $'000

2016-17 $'000

2017-18 $'000

2018-19 $'000

Outcome 1 Increase in estimates (administered) Annual Appropriations Country of Origin Labelling

Information Campaign1 1,2 6,900 - - -

National Innovation and Science Agenda — advancing Australia's cyber security 2 - 3,950 6,500 10,500

— Business Research and Innovation Initiative 1 - 2,450 9,200 3,550

— enhancing research- business links 2 - 2,874 6,401 7,121

— Global Innovation Strategy 1 - 5,036 6,536 6,536

— inspiring all Australians in STEM 1 25,500 12,750 8,250 12,225

— quantum computing 1 - 5,000 5,000 5,000

— supporting critical research infrastructure 1 - 4,000 3,600 39,000

— supporting incubators 2 - 1,000 2,000 2,000

Next Generation Manufacturing Investment Programme — expansion2 2 - 6,000 13,500 8,500

Our North, Our Future — business, trade and investment gateway

— A Cooperative Research Centre for Developing Northern Australia 1 3,000 7,500 8,500 8,500

— Expansion of business advisory services to tourism business in Northern Australia 2 522 3,072 2,886 2,920

Tasmanian Jobs and Investment Fund — establishment 2 5,000 5,500 5,500 -

Total 40,922 59,132 77,873 105,852

Entity Additional Estimates Statements — DIIS

19

Table 1.3: Additional estimates and variations to outcomes from measures since 2015-16 Budget (continued) Programme impacted

2015-16 $'000

2016-17 $'000

2017-18 $'000

2018-19 $'000

Decrease in estimates (administered) Annual Appropriations Manufacturing Transition Grants Programme - contribution to the Tasmanian Jobs and Investment Fund 2 (1,400) - - -

Regional Infrastructure Programme -transfer to the Next Generation Manufacturing Investment Programme - expansion2

2 - - - (100)

Total (1,400) - - (100)

Net impact on estimates for Outcome 1 (administered) 39,522 59,132 77,873 105,752

Increase in estimates (departmental) Annual Appropriations Administration of the Australian Jobs Act 2013 — continuation3 3 - - - 1,974

National Innovation and Science Agenda — advancing Australia's cyber security 3 - 272 274 276

— Business Research and Innovation Initiative 3 - 1,524 860 1,146

— enhancing research - business links 3 - 356 478 481

— Innovation and Science Australia 3 1,098 2,256 2,469 2,283

— inspiring all Australians in STEM 3 - 416 418 3,291

— quantum computing 3 - 375 - -

— supporting critical research infrastructure 3 - - - 5,000

— supporting incubators 3 - 1,590 810 680

Our North, Our Future — business, trade and investment gateway — A single point of entry for major project investments

3 316 569 574 580

Total 1,414 7,358 5,883 15,711

Entity Additional Estimates Statements — DIIS

20

Table 1.3: Additional estimates and variations to outcomes from measures since 2015-16 Budget (continued) Programme impacted

2015-16 $'000

2016-17 $'000

2017-18 $'000

2018-19 $'000

Decrease in estimates (departmental) Annual Appropriations Administration of the Australian Jobs Act 2013 — continuation3 3 (2,436) (2,231) (2,295) -

Total (2,436) (2,231) (2,295) -

Net impact on estimates for Outcome 1 (departmental) (1,022) 5,127 3,588 15,711

Decisions taken but not yet announced - - - - 1This measure was included as a 'decision taken but not yet announced' in the 2015-16 MYEFO. Total funding for this proposal is $14.5 million, with the included figure representing the additional funding received by the department. 2Funding for the Regional Infrastructure Programme (RIP), including amounts transferred from the Department of the Treasury, has been reallocated to the Next Generation Manufacturing Investment Programme. 3Savings from this measure were provided for by the Government in the 2014-15 Budget. The above figures reflect the net impact to the department of continuing the administration of the Australian Jobs Act 2013.

Entity Additional Estimates Statements — DIIS

21

Table 1.4: Additional estimates and variations to outcomes from other variations Programme impacted 2015-16

$'000

2016-17 $'000

2017-18 $'000

2018-19 $'000

Outcome 1 Increase in estimates (administered) Annual Appropriations Estimates variations 2 - - - 962

Movement of funds 1, 2 - 2,250 22,000 1,718

Reprofiling of estimates 1, 2 4,505 - - -

Transfer from the Department of Communications and the Arts 1 2,192 2,396 1,500 1,500

Total 6,697 4,646 23,500 4,180

Increase in estimates (administered) Special Appropriations Estimates variations 2 38,562 - - -

Total 38,562 - - -

Decrease in estimates (administered) Annual Appropriations Estimates variations 2 (14,671) - - -

Movement of funds 1 - - - (18,000)

Parameter adjustments 1, 2 - (277) (382) (872)

Reprofiling of estimates 1, 2 (4,505) - - -

Transfer to the Department of the Environment 2 (182,180) (74,436) (74,334) (25,712)

Total (201,356) (74,713) (74,716) (44,584)

Net impact on estimates for Outcome 1 (administered) (156,097) (70,067) (51,216) (40,404)

Increase in estimates (departmental) Annual Appropriations Estimates variations 3 985 1,418 910 911

Transfer from the Department of Communication and the Arts 3 2,453 3,417 3,477 3,504

Transfer from the Department of Infrastructure and Regional Development 3 1,813 2,638 2,656 2,674

Transfer from the Department of the Treasury 3 1,000 1,500 2,000 2,000

Total 6,251 8,973 9,043 9,089

Decrease in estimates (departmental) Annual Appropriations Estimates variations 3 (3,260) (260) (459) (505)

Parameter adjustments 3 - - (373) (747)

Transfer to the Department of the Environment 3 (4,688) (6,360) (3,960) (3,642)

Total (7,948) (6,620) (4,792) (4,894)

Net impact on estimates for Outcome 1 (departmental) (1,697) 2,353 4,251 4,195

Entity Additional Estimates Statements — DIIS

22

1.5 BREAKDOWN OF ADDITIONAL ESTIMATES BY APPROPRIATION BILL

The following tables detail the Additional Estimates sought for the Department of Industry, Innovation and Science through Appropriation Bills Nos. 3 and 4.

Table 1.5: Appropriation Bill (No. 3) 2015-16 2014-15 Available $'000

2015-16 Budget $'000

2015-16 Revised $'000

Additional Estimates $'000

Reduced Estimates $'000

Administered items Outcome 1

Enabling growth and productivity for globally competitive industries through supporting science and commercialisation, growing business investment and improving business capability and streamlining regulation.

1,581,959 643,285 668,136 24,851 -

Total administered 1,581,959 643,285 668,136 24,851 -

Departmental programmes Outcome 1

Enabling growth and productivity for globally competitive industries through supporting science and commercialisation, growing business investment and improving business capability and streamlining regulation.

502,483 428,674 428,377 - (297)

Total departmental 502,483 428,674 428,377 - (297)

Total administered and departmental 2,084,442 1,071,959 1,096,513 24,851 (297)

The 2015-16 Budget figures include the net impact of Section 75 determinations, as a result of the 21 and 30 September 2015 Administrative Arrangements Orders.

Table 1.6: Appropriation Bill (No. 4) 2015-16 2014-15 Available $'000

2015-16 Budget $'000

2015-16 Revised $'000

Additional Estimates $'000

Reduced Estimates $'000

Non-operating Equity injections 12,514 32,512 35,369 2,857 -

Total Equity injections - -

- -

Administered assets and liabilities - 30,938 30,938 - -

Total non-operating 12,514 63,450 66,307 2,857 -

Total 12,514 63,450 66,307 2,857 -

Entity Additional Estimates Statements — DIIS

23

Section 2: Revisions to outcomes and planned performance

2.1 OUTCOMES AND PERFORMANCE INFORMATION

There have been no changes to the outcome statement or structure since the 2015-16 Portfolio Budget Statements.

OUTCOME 1

Outcome 1: Enabling growth and productivity for globally competitive industries through supporting science and commercialisation, growing business investment and improving business capability and streamlining regulation.

Outcome 1 strategy

There is no change to the outcome 1 strategy as a result of the 2015-16 Additional Estimates. The department’s overall goal is to enable growth and productivity for globally competitive industries. The department aims to achieve this outcome through the delivery of a wide range of measures and activities under the following three programmes:

 Programme 1: Supporting Science and Commercialisation

 Programme 2: Growing Business Investment and Improving Business Capability

 Programme 3: Programme Support

The tables below show significant changes to performance information for the 2015-16 financial year and additional components that have not previously been reflected in a Budget statement. Changes for future years will be reflected in the 2016-17 Portfolio Budget Statements.

Entity Additional Estimates Statements — DIIS

24

Table 2.1 Budgeted expenses for Outcome 1 Outcome 1: Enabling growth and productivity for globally competitive industries through supporting science and commercialisation, growing business investment and improving business capability and streamlining regulation.

2014-15 Actual expenses $'000

2015-16 Revised estimated expenses

$'000

Programme 1: Supporting Science and Commercialisation

Administered expenses Ordinary annual services (Appropriation Act No. 1 and Bill No. 3) 171,463 188,575 Total for Programme 1 171,463 188,575

Programme 2: Growing Business Investment and Improving Business Capability Administered expenses Ordinary annual services (Appropriation Act No. 1 and Bill No. 3) 21,383 175,581

Special appropriations 24,409 23,891

Special accounts 13,256 40,684

Expenses not requiring appropriation in the Budget year1 3,897 3,074

Total for Programme 2 62,945 243,230

Programme 3: Programme Support Departmental expenses Departmental appropriation2 530,450 467,022

Special accounts 16,408 13,750

Expenses not requiring appropriation in the Budget year 3 42,231 33,426

Total for Programme 3 589,089 514,198

Programme transferred to the Department of the Environment4

Administered expenses Special appropriations 244,493 14,671

Total for Programme transferred to the Department of the Environment 244,493 14,671

Outcome 1 Totals by appropriation type Administered expenses Ordinary annual services (Appropriation Act No. 1 and Bill No. 3) 192,846 364,156 Special appropriations 268,902 38,562

Special accounts 13,256 40,684

Expenses not requiring appropriation in the Budget year1 3,897 3,074

Departmental expenses

Departmental appropriation 2

530,450 467,022

Special accounts 16,408 13,750

Expenses not requiring appropriation in the Budget year3 42,231 33,426

Total expenses for Outcome 1 1,067,990 960,674

2014-15 2015-16

Average Staffing Level (number) 2,812 2,538 1Expenses not requiring appropriation relates to depreciation and amortisation expenses for the National Offshore Petroleum Titles Administrator and the Syntroleum Depreciation programme. 2Departmental appropriation combines 'Ordinary annual services (Appropriation Act No. 1 & Bill No. 3)' and 'Revenue from independent sources (s74)'. 3Expenses not requiring appropriation in the Budget year is made up of depreciation expense and amortisation expense, audit fees and the difference between receipts and expenses for special accounts. 4The 2015-16 estimate reflects the part-year impact of the Australian Renewable Energy Agency, which transferred to the Department of the Environment as a result of the 21 September 2015 Administrative Arrangements Order.

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Programme 1: Supporting Science and Commercialisation

Programme 1 Components

Additional components:

 Global Innovation Strategy

 Inspiring all Australians in STEM

 Business Research and Innovation Initiative

 Digital Productivity

 Quantum Computing

These components largely relate to the Government’s National Innovation and Science Agenda. Responsibility for Digital Productivity programmes transferred to the Department of Industry, Innovation and Science from the Department of Communications and the Arts following the Administrative Arrangements Order of 21 September 2015.

Performance information for these programmes will be reflected in the 2016-17 Portfolio Budget Statements.

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Programme Expenses 1: Supporting Science and Commercialisation 2014-15 Actual $'000

2015-16 Revised budget $'000

2016-17 Forward year 1 $'000

2017-18 Forward year 2 $'000

2018-19 Forward year 3 $'000

Sub-programme 1.1: Science awareness, infrastructure and international engagement Annual administered expenses:

Australia-India Strategic Research Fund 6,250 4,040 2,547 2,213 1,040

Global Innovation Strategy - - 5,036 6,536 6,536

Inspiring all Australians in STEM1 3,988 29,489 16,739 12,239 12,225

Square Kilometre Array Radio Telescope Project 9,504 6,933 4,000 3,600 39,000

Total annual administered expenses 19,742 40,462 28,322 24,588 58,801

Total sub-programme 1.1 expenses 19,742 40,462 28,322 24,588 58,801

Sub-programme 1.2: Business research, development and commercialisation Annual administered expenses: Business Research and Innovation Initiative - - 2,450 9,200 3,550

Cooperative Research Centres Programme 150,226 141,148 150,282 160,123 156,403

Digital Productivity - 2,192 2,396 1,500 1,500

Research and Development Tax Incentive 1,495 4,773 2,073 2,073 2,073

Quantum Computing - - 5,000 5,000 5,000

Total annual administered expenses 151,721 148,113 162,201 177,896 168,526 Total sub-programme 1.2 expenses 151,721 148,113 162,201 177,896 168,526

Total programme 1 expenses 171,463 188,575 190,523 202,484 227,327 1For details on this measure refer to page 196 of the MYEFO document. This also includes funding for the measure formerly reported as 'Science for Australia's Future'.

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Programme 1 Performance

Contributing Component

Measure

2015-16 Estimate

2015-16 Revised Estimate

Australia-China Science

and Research Fund;

Australia-India Strategic

Research Fund

Number of collaborative

research projects

completed that reported

strengthened

international

relationships

10 26

Entity Additional Estimates Statements — DIIS

28

Programme 2: Growing Business Investment and Improving Business Capability

Programme 2 Components

Additional components:

 Country of Origin Labelling Information Campaign

 Northern Australia Infrastructure Facility

 Tasmanian Jobs and Investment Fund

Responsibility for the Australian Renewable Energy Agency programme and the Australian Renewable Energy Agency Act 2011 transferred to the Department of the Environment following the Administrative Arrangements Order of 21 September 2015.

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Programme Expenses 2: Growing Business Investment and Improving Business Capability 2014-15 Actual

$'000

2015-16 Revised budget $'000

2016-17 Forward year 1 $'000

2017-18 Forward year 2 $'000

2018-19 Forward year 3 $'000

Sub-programme 2.1: Competitive marketplace Annual administered expenses: Country of Origin Labelling Information

Campaign - 14,500 - - -

Total annual administered expenses - 14,500 - - -

Total sub-programme 2.1 expenses - 14,500 - - -

Sub-programme 2.2: Business and market development Annual administered expenses:

Entrepreneurs' Programme1 13,784 84,251 106,227 116,501 118,161

Industry Growth Centres 4,999 36,930 60,730 93,980 56,398

Total annual administered expenses 18,783 121,181 166,957 210,481 174,559

Total sub-programme 2.2 expenses 18,783 121,181 166,957 210,481 174,559

Sub-programme 2.3: Economic transition Annual administered expenses:

Manufacturing Transition Grants Programme 2,600 23,100 21,100 - -

Next Generation Manufacturing Investment Programme2,3 - 11,800 21,000 21,184 8,600

Tasmanian Jobs and Investment Fund - 5,000 5,500 5,500 -

Total annual administered expenses 2,600 39,900 47,600 26,684 8,600

Special appropriations:

Textile, Clothing and Footwear Investment and Innovation Programs Act 1999 24,409 23,891 - - -

Total special appropriations 24,409 23,891 - - -

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Programme Expenses 2: Growing Business Investment and Improving Business Capability (continued) 2014-15 Actual

$'000

2015-16 Revised budget $'000

2016-17 Forward year 1 $'000

2017-18 Forward year 2 $'000

2018-19 Forward year 3 $'000

Special account expenses:

Services for Other Entities and Trust Moneys - s20 FMA Act Det 2011/09 2,681 26,384 14,986 9,036 -

Total special account expenses 2,681 26,384 14,986 9,036 -

Total sub-programme 2.3 expenses 29,690 90,175 62,586 35,720 8,600

Sub-programme 2.4: Resources Special account expenses: National Offshore Petroleum Titles Administrator 10,575 14,300 11,000 11,000 11,000

Total special account expenses: 10,575 14,300 11,000 11,000 11,000

Expenses not requiring appropriation in the Budget year National Offshore Petroleum Titles Administrator4 1,947 2,995 1,610 202 196

Syntroleum Depreciation 1,950 79 - - -

Total expenses not requiring appropriation in the Budget year 3,897 3,074 1,610 202 196

Total sub-programme 2.4 expenses 14,472 17,374 12,610 11,202 11,196

Sub-programme 2.5: Energy Special appropriations: Australian Renewable Energy Agency Act

2011 - Payments to ARENA5 244,493 14,671 - - -

Total special appropriations 244,493 14,671 - - -

Total sub-programme 2.5 expenses 244,493 14,671 - - -

Sub-Programme 2.6: Northern Australia Infrastructure Facility Expenses not requiring appropriation in the Budget year

Northern Australia Infrastructure Facility6 - - 386,766 386,766 386,766

Total expenses not requiring appropriation in the Budget year - - 386,766 386,766 386,766

Total sub-programme 2.6 expenses - - 386,766 386,766 386,766

Total programme 2 expenses 307,438 257,901 628,919 644,169 581,121 1This was previously reported as the Entrepreneurs' Infrastructure Programme. 2This is a component of the Growth Fund. 3Funding for the Regional Infrastructure Programme, including amounts transferred from the Department of the Treasury, has been reallocated to the Next Generation Manufacturing Investment Programme. 4Expenses not requiring appropriation relates to depreciation and amortisation expenses for the National Offshore Petroleum Titles Administrator. 5The 2015-16 estimate reflects the part-year impact for the Australian Renewable Energy Agency Act 2011 - Payments to ARENA, transferred to the Department of the Environment as a result of the 21 September 2015 Administrative Arrangements Order. 6These amounts represent the concessional expense component of the loans proposed under the Northern Australia Infrastructure Facility, transferred from the Department of the Treasury as a result of the 30 September 2015 Administrative Arrangements Order.

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Programme 2 Performance

Contributing Component

Measure

2015-16 Estimate

2015-16 Revised Estimate

Certain Inputs to

Manufacture (CIM);

Enhanced Project By-law

Scheme (EPBS); Space

Concession (SC)

Number of new duty

and/or tax registrations

for CIM, EPBS and SC

10 13

Total value of duty

and/or tax concessions to

eligible firms ($’000)

143,300 277,500

Tradex

Value of duty and/or tax

concessions to eligible

firms ($’000)

140,000 195,000

Industry Growth Centres

Initiative

Established Industry Growth Centres are undertaking strategic activities to

improve the innovation, productivity and competitiveness of their respective

sectors

Automotive

Diversification

Programme

Induced private sector

investment in new or

expanded activity by the

Australian automotive

supply chain ($’000)

7,000 20,000(1)

Northern Australia

Infrastructure Facility

(NAIF)

To be developed following finalisation of the programme design and

consultation with stakeholders

Tasmanian Jobs and

Investment Fund

Induced private sector

investment in new or

expanded business

activity ($'000)

- 10,000

1 This revised estimate captures additional investment by companies funded under Round 2, which was unknown at the time of the 2015-16 Budget.

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Programme 3: Programme Support

Programme Expenses 3: Programme Support1

2014-15 Actual $'000

2015-16 Revised budget $'000

2016-17 Forward year 1 $'000

2017-18 Forward year 2 $'000

2018-19 Forward year 3 $'000

Annual departmental expenses:

Ordinary Annual Services (Appropriation Act No. 1 & Bill No. 3) 471,091 399,908 393,399 388,744 402,055 s74 Retained revenue receipts 59,359 67,114 59,586 57,897 55,896

Special Accounts 16,408 13,750 6,648 6,307 6,007

Expenses not requiring appropriation in the Budget year2 42,231 33,426 44,136 43,839 44,157

Total programme expenses 589,089 514,198 503,769 496,787 508,115 1This table reflects the impact for all functions transferred to and from the department as a result of the 21 and 30 September 2015 Administrative Arrangements Orders. 2Expenses not requiring appropriation in the Budget year is made up of depreciation and amortisation expenses, audit fees and the difference between receipts and expense for special accounts.

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Section 3: Explanatory tables and budgeted financial Statements

3.1 EXPLANATORY TABLES

Estimates of special account flows

Special Accounts provide a means to set aside and record amounts used for specified purposes. Table 3.1.1 shows the expected additions (receipts) and reductions (payments) for each account used by the Department of Industry, Innovation and Science. The corresponding table in the 2015-16 PB Statements is Table 3.1.2.

Table 3.1.1: Estimates of special account flows and balances Outcome Opening balance 2015-16

2014-15 $'000

Receipts

2015-16 2014-15 $'000

Payments

2015-16 2014-15 $'000

Adjustments

2015-16 2014-15 $'000

Closing balance 2015-16 2014-15

$'000

- - - - -

133 - - (133) -

94,582 87,835 (114,921) - 67,496

107,776 32,351 (45,545) - 94,582

9,360 11,000 (14,300) - 6,060

10,126 12,201 (12,967) - 9,360

68,293 1,922 - 471 70,686

66,163 272,342 (270,212) - 68,293

21,906 13,500 (26,384) - 9,022

11,962 14,995 (4,627) (424) 21,906

10,319 8,400 (8,773) - 9,946

11,693 8,494 (9,868) - 10,319

5,260 - (663) (4,597) -

6,521 1,729 (2,990) - 5,260

11,696 - (68) (11,628) -

11,841 1,201 (1,346) - 11,696

Australian New Zealand Land Information Special Account - s20 FMA Act Det 2001/11 (A)1 1

Clean Energy Initiative Special Account - s20 FMA Act Det 2009/21 (A) 1

National Offshore Petroleum Titles Administrator Special Account - s21 FMA Act (s695H Offshore Petroleum and Greenhouse Gas Storage Act 2006) (A)

Services for Other Entities and Trust Moneys - Department of Industry, Innovation and Science Special Account - s20 FMA Act Det 2011/09 (A)

1

1

1

Australian Building Codes Board Special Account - s20 FMA Act Det 2006/68 (D)

Ranger Rehabilitation Special Account - s20 FMA Act Det 2006/70 (A)

Energy Special Account - s20 FMA Act Det 2005/08 (D)2

1

1

1

Climate Change Special Account - s20 FMA Act Det 2012/16 (D)2

Entity Additional Estimates Statements — DIIS

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Table 3.1.1: Estimates of special account flows and balances (continued) Outcome Opening balance 2015-16

2014-15 $'000

Receipts

2015-16 2014-15 $'000

Payments

2015-16 2014-15 $'000

Adjustments

2015-16 2014-15 $'000

Closing balance 2015-16 2014-15

$'000

16,225 365 (5,739) - 10,851

- - - - -

5,299 2,009 (2,507) - 4,801

698 4,949 (348) - 5,299

- - - - -

- 4,042 (1,856) (2,186) -

Total special accounts 2015-16 Budget estimate 242,940 125,031 (173,355) (15,754) 178,862

Total special accounts 2014-15 actual 226,913 352,304 (349,759) (2,743) 226,715

Science and Technology Donations/Sponsorship Special Account - s20 FMA Act Det 2006/40 (D)

Student Identifiers Special Account - s21 FMA Act (s48 Student Identifiers Act 2014) (D)3

1

1

Energy Special Account 2015 - s78 PGPA Act Det 2015/07 (D)2 1

(A) = Administered (D) = Departmental 1 This special account was transferred to the Department of Communications and the Arts as of 1 July 2014.

2 The Climate Change Special Account - s20 FMA Act Det 2012/16 and the Energy Special Account - s20 FMA Act Det 2005/08 were merged under the newly created Energy Special Account 2015 - s78 PGPA Act Det 2015/07.

3 This special account transferred to the Department of Education and Training as a result of the 23 December 2014 Administrative Arrangements Order.

Entity Additional Estimates Statements — DIIS

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3.2 BUDGETED FINANCIAL STATEMENTS

3.2.1 Analysis of budgeted financial statements

Budgeted Departmental Income Statement

The statement shows the estimated net cost of services for the department.

The budgeted net cost of services to the department for delivering its programmes in 2015-16 is $439.6 million.

Expenses

Total departmental expenses budgeted for in 2015-16 are $514.2 million, comprising $315.8 million for employee expenses, $156.0 million for suppliers, $40.1 million for depreciation and amortisation, $1.7 million for grants and $0.7 million for other expenses.

Income

Total departmental own-source income budgeted for in 2015-16 is $74.6 million, comprising $67.1 million from sale of goods and rendering of services, $6.8 million from other independent sources and $0.7 million in resources received free of charge.

Revenue from Government for 2015-16 is budgeted at $399.9 million.

Budgeted Departmental Balance Sheet

The statement shows the estimated end of year position for departmental assets and liabilities.

Assets

Total departmental assets budgeted for 2015-16 are $441.4 million, comprising $261.1 million in non-financial assets and $180.3 million in financial assets.

Non-financial assets include $125.4 million for land and buildings, $75.7 million for property, plant and equipment, $49.4 million for intangibles, $2.2 million for inventories and $8.3 million in other assets. Financial assets consist of $169.9 million for receivables, $7.6 million for cash, and $2.8 million in other assets.

Liabilities

Total departmental liabilities budgeted for in 2015-16 are $189 million, comprising $99.3 million in provisions and $89.7 million in payables.

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Budgeted Departmental Statement of Cash Flows

The statement provides information on estimates of the extent and nature of cash flows by categorising the expected cash flows against operating, investing and financing activities.

Statement of Changes in Equity - Summary of movement

The statement shows the expected movement of equity during the budget year.

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Administered Financial Statements

Schedule of Budgeted Income and Expenses

The schedule shows the estimated income and expenses for programmes administered by the department on behalf of the Government.

Income

Total administered income budgeted for in 2015-16 is $1.2 billion, represented by $1.1 billion in royalties, $33.3 million in dividends and interest, $110.0 million in other revenue and $2.5 million for the sale of goods and services.

Expenses

Total administered expenses budgeted for in 2015-16 are $2.0 billion, represented by $653.3 million in grants, $947.4 million in payments to corporate Commonwealth entities, $245.9 million in subsidies, $135.6 million in suppliers and depreciation and $6.7 million in employee benefits.

Schedule of Budgeted Assets and Liabilities

The schedule shows the estimated end of year position for assets and liabilities administered by the department on behalf of the Government.

Assets

Total administered assets budgeted for in 2015-16 are $4.3 billion, represented by $4.0 billion in investments, $223.2 million in cash and receivables, $95.2 million in other financial assets and $2.1 million in non-financial assets.

Liabilities

Total administered liabilities budgeted for in 2015-16 are $154.2 million, represented by $153.1 million in payables and $1.1 million in provisions.

Schedule of Budgeted Administered Cash Flows

The schedule shows the estimated cash receipts and payments administered by the department on behalf of the Government.

Entity Additional Estimates Statements — DIIS

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3.2.2 Budgeted financial statements

Table 3.2.1: Comprehensive income statement (showing net cost of services) for the period ended 30 June. 2014-15 Actual

$'000

2015-16 Revised budget $'000

2016-17 Forward estimate $'000

2017-18 Forward estimate $'000

2018-19 Forward estimate $'000

EXPENSES Employee benefits 323,473 315,752 316,001 317,547 321,383

Suppliers 192,476 155,986 143,284 135,233 142,707

Grants 19,487 1,674 270 270 270

Depreciation and amortisation 43,661 40,058 43,486 43,009 43,027

Finance costs 259 - - - -

Write-down and impairment of assets 9,043 - - - -

Losses from asset sales 38 - - - -

Other expenses 652 728 728 728 728

Total expenses 589,089 514,198 503,769 496,787 508,115

LESS: OWN-SOURCE INCOME Own-source revenue Sale of goods and rendering of services 48,656 67,114 59,586 57,897 55,896

Interest 39 - - - -

Other revenue 27,111 6,774 6,100 5,709 5,549

Total own-source revenue 75,806 73,888 65,686 63,606 61,445

Gains Sale of assets 380 - - - -

Foreign exchange gains 1 - - - -

Other gains 1,845 728 728 728 728

Total gains 2,226 728 728 728 728

Total own-source income 78,032 74,616 66,414 64,334 62,173

Net cost of (contribution by) services 511,057 439,582 437,355 432,453 445,942

Revenue from Government 471,091 399,908 393,399 388,744 402,055

Surplus/(deficit) attributable to the Australian Government (39,966) (39,674) (43,956) (43,709) (43,887)

Total comprehensive income/(loss) (39,966) (39,674) (43,956) (43,709) (43,887)

Entity Additional Estimates Statements — DIIS

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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 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

3,695 (500) (500) (700) (860)

less depreciation/amortisation expenses previously funded through revenue appropriations1 (43,661) (39,174) (43,456) (43,009) (43,027)

Total comprehensive income/(loss) - as per the Statement of Comprehensive Income (39,966) (39,674) (43,956) (43,709) (43,887)

Prepared on Australian Accounting Standards basis. 1 The variance from the depreciation and amortisation expense is recovered via section 74 receipts.

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Table 3.2.2: Budgeted departmental balance sheet (as at 30 June) 2014-15 Actual $'000

2015-16 Revised budget $'000

2016-17 Forward estimate $'000

2017-18 Forward estimate $'000

2018-19 Forward estimate $'000

ASSETS Financial assets Cash and cash equivalents 8,198 7,552 7,304 6,806 6,448

Trade and other receivables 155,226 169,939 164,577 162,577 162,075

Other financial assets 2,855 2,846 2,635 2,628 2,628

Total financial assets 166,279 180,337 174,516 172,011 171,151

Non-financial assets Land and buildings 124,778 125,442 119,055 113,701 108,408

Property, plant and equipment 86,366 75,700 68,058 60,045 52,379

Intangibles 31,981 49,409 52,486 53,838 51,130

Inventories 2,198 2,198 2,198 2,198 2,198

Other non-financial assets 8,311 8,302 8,112 8,106 8,106

Total non-financial assets 253,634 261,051 249,909 237,888 222,221

Total assets 419,913 441,388 424,425 409,899 393,372

LIABILITIES Payables Suppliers 24,531 47,169 47,169 47,169 47,169

Grants 1,983 1,983 1,983 1,983 1,983

Other payables 62,619 40,556 40,556 40,556 40,556

Total payables 89,133 89,708 89,708 89,708 89,708

Provisions Employee provisions 86,000 82,729 79,967 80,081 80,081

Other provisions 16,557 16,557 16,557 16,557 16,557

Total provisions 102,557 99,286 96,524 96,638 96,638

Total liabilities 191,690 188,994 186,232 186,346 186,346

Net assets 228,223 252,394 238,193 223,553 207,026

Prepared on Australian Accounting Standards basis.

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Table 3.2.2: Budgeted departmental balance sheet (as at 30 June) (continued) 2014-15 Actual $'000

2015-16 Revised budget $'000

2016-17 Forward estimate $'000

2017-18 Forward estimate $'000

2018-19 Forward estimate $'000

EQUITY1 Contributed equity 388,205 452,052 481,807 510,876 538,236

Reserves 8,499 8,499 8,499 8,499 8,499

Accumulated deficit (168,481) (208,157) (252,113) (295,822) (339,709)

Total Equity 228,223 252,394 238,193 223,553 207,026

Prepared on Australian Accounting Standards basis. 1 Equity is the residual interest in assets after the deduction of liabilities.

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Table 3.2.3: Departmental statement of changes in equity — summary of movement (Budget Year 2015-16) Retained earnings

$'000

Asset

revaluation reserve $'000

Contributed equity/ capital $'000

Total equity $'000

Opening balance as at 1 July 2015 Balance carried forward from previous period (168,481) 8,499 388,205 228,223

Adjusted opening balance (168,481) 8,499 388,205 228,223

Comprehensive income Deficit for the period (39,674) - - (39,674)

Total comprehensive income (39,674) - - (39,674)

Transactions with owners Contributions by owners Equity Injection - Appropriation - - 11,887 11,887

Departmental Capital Budget (DCB) - - 28,469 28,469

Other1 - - 23,482 23,482

Restructuring - - 8 8

Sub-total transactions with owners - - 63,846 63,846

Estimated closing balance as at 30 June 2016 (208,155) 8,499 452,051 252,395

Closing balance attributable to the Australian Government (208,155) 8,499 452,051 252,395

Prepared on Australian Accounting Standards basis 1 This amount was reappropriated to the department following the repeal of prior year appropriation acts under the Omnibus Repeal Day (Autumn 2014) Act 2014.

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Table 3.2.4: Budgeted departmental statement of cash flows (for the period ended 30 June) 2014-15 Actual

$'000

2015-16 Revised budget $'000

2016-17 Forward estimate $'000

2017-18 Forward estimate $'000

2018-19 Forward estimate $'000

OPERATING ACTIVITIES Cash received Appropriations 523,818 385,196 398,761 390,744 402,557

Sale of goods and rendering of services 48,160 67,114 59,586 57,897 55,896

Net GST received 15,868 15,839 14,033 13,329 13,188

Rental Income 730 - - - -

Other 33,636 6,783 6,311 5,716 5,549

Total cash received 622,212 474,932 478,691 467,686 477,190

Cash used Employees 340,424 317,935 318,763 317,433 321,383

Suppliers 193,469 157,262 142,879 134,499 141,979

Grants 18,209 1,674 270 270 270

Net GST paid - 15,839 14,033 13,329 13,188

s74 Retained Revenue Receipts transferred to OPA 60,996 - - - -

Other 4,775 728 215 728 728

Total cash used 617,873 493,438 476,160 466,259 477,548

Net cash from/(used by) operating activities 4,339 (18,506) 2,531 1,427 (358)

INVESTING ACTIVITIES Cash received Proceeds from sales of property, plant and equipment 121 - - - -

Total cash received 121 - - - -

Cash used Purchase of property, plant, equipment and intangibles 37,046 45,978 32,534 30,994 27,360

Total cash used 37,046 45,978 32,534 30,994 27,360

Net cash from/(used by) investing activities (36,925) (45,978) (32,534) (30,994) (27,360)

FINANCING ACTIVITIES Cash received Contributed equity 34,937 63,838 29,755 29,069 27,360

Total cash received 34,937 63,838 29,755 29,069 27,360

Net cash used by financing activities 34,937 63,838 29,755 29,069 27,360

Net increase/(decrease) in cash held 2,351 (646) (248) (498) (358)

Cash and cash equivalents at the beginning of the reporting period 5,847 8,198 7,552 7,304 6,806

Cash and cash equivalents at the end of the reporting period 8,198 7,552 7,304 6,806 6,448

Prepared on Australian Accounting Standards basis.

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Table 3.2.5: Departmental capital budget statement (for the period ended 30 June) 2014-15 Actual

$'000

2015-16 Revised budget $'000

2016-17 Forward estimate $'000

2017-18 Forward estimate $'000

2018-19 Forward estimate $'000

NEW CAPITAL APPROPRIATIONS Capital budget - Act No. 1 (DCB) 30,830 28,469 25,488 25,800 26,027

Equity injections - Act No. 2 4,107 35,369 4,267 3,269 1,333

Total new capital appropriations 34,937 63,838 29,755 29,069 27,360

Provided for: Purchase of non-financial assets 34,937 40,356 29,755 29,069 27,360

Other Items1 - 23,482 - - -

Total Items 34,937 63,838 29,755 29,069 27,360

PURCHASE OF NON-FINANCIAL ASSETS

Funded by capital appropriations2 4,107 14,033 7,016 5,194 1,333

Funded by capital appropriation - DCB3 30,830 29,706 25,488 25,800 26,027

Funded internally from departmental resources4 2,109 2,239 30 - -

TOTAL AMOUNT SPENT 37,046 45,978 32,534 30,994 27,360

RECONCILIATION OF CASH USED TO ACQUIRE ASSETS TO ASSET MOVEMENT TABLE

Total purchases 37,046 45,978 32,534 30,994 27,360

TOTAL CASH REQUIRED TO ACQUIRE ASSETS 37,046 45,978 32,534 30,994 27,360 Prepared on Australian Accounting Standards basis. 1This amount was reappropriated to the department following the repeal of prior year appropriation acts under the Omnibus Repeal Day (Autumn 2014) Act 2014. 2Includes both current and prior Act 2 and Bills 4/6 appropriations and special capital appropriations. 3Does not include annual finance lease costs. Includes purchases from current and previous years' Departmental Capital Budgets (DCBs). 4Includes the following sources of funding: - current and prior year Act (No. 1) and Bills 3/5 appropriations (excluding amounts from the DCB) - donations and contributions - gifts - internally developed assets - s74 Retained Revenue Receipts.

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Table 3.2.6: Statement of asset movements (2015-16 Budget year) Buildings $'000 Other

property, plant and equipment $'000

L&B, IP&E held for sale $'000

Total $'000

As at 1 July 2015 Gross book value 160,993 152,321 114,840 428,154

Accumulated depreciation/amortisation and impairment (36,216) (65,955) (81,360) (183,531)

Opening net book balance 124,777 86,366 33,480 244,623

Capital asset additions Estimated expenditure on new or replacement assets By purchase - appropriation ordinary annual services 12,395 10,188 23,403 45,986

Total additions 12,395 10,188 23,403 45,986

Other movements Depreciation/amortisation expense (11,730) (20,854) (7,474) (40,058)

As at 30 June 2016 Gross book value 173,388 162,509 138,243 474,140

Accumulated depreciation/amortisation and impairment (47,946) (86,809) (88,834) (223,589)

Closing net book balance 125,442 75,700 49,409 250,551

Prepared on Australian Accounting Standards basis.

Entity Additional Estimates Statement — DIIS

46

Table 3.2.7: Schedule of budgeted income and expenses administered on behalf of Government (for the period ended 30 June) 2014-15 Actual

$'000

2015-16 Revised budget $'000

2016-17 Forward estimate $'000

2017-18 Forward estimate $'000

2018-19 Forward estimate $'000

EXPENSES ADMINISTERED ON BEHALF OF GOVERNMENT Employee benefits 4,946 6,700 7,500 7,500 7,500

Suppliers 403,699 132,538 88,254 86,382 106,310

Subsidies 696,573 245,911 175,927 64,809 -

Personal benefits 79,011 - - - -

Grants 672,602 653,248 465,786 441,272 398,162

Depreciation and amortisation 3,897 3,074 1,610 202 196

Write-down and impairment of assets 20 - - - -

Payments to corporate Commonwealth entities 1,222,164 947,464 1,013,120 1,038,559 1,085,126 Concessional Loan Discount - - 386,766 386,766 386,766

Total expenses administered on behalf of Government 3,082,912 1,988,935 2,138,963 2,025,490 1,984,060

LESS:

OWN-SOURCE INCOME Own-source revenue Taxation revenue Income tax 174 171 171 171 171

Indirect tax 1,204 550 550 550 550

Total taxation revenue 1,378 721 721 721 721

Non-taxation revenue Fees from regulatory services 46,617 11,000 11,000 11,000 11,000

Sale of goods and rendering of services 4,455 2,508 2,508 2,508 2,508

Interest 6,708 3,309 53,111 102,160 150,420

Dividends 20,151 24,700 22,100 23,400 24,700

Royalties 1,384,095 1,069,661 937,857 833,013 671,152

Other non-taxation revenue 14,420 98,875 107,193 89,992 83,842

Unwind Concessional Loan Discount - 5,357 16,988 29,017 41,448

Total non-taxation revenue 1,476,446 1,215,410 1,150,757 1,091,090 985,070

Total own-source revenue administered on behalf of Government 1,477,824 1,216,131 1,151,478 1,091,811 985,791

Gains

Reversal of previous financial instruments impairments 6,084 - - - -

Other gains 302 - - - -

Total gains administered on behalf of Government 6,386 - - - -

Total own-source income administered on behalf of Government 1,484,210 1,216,131 1,151,478 1,091,811 985,791

Net cost of services 1,598,702 772,804 987,485 933,679 998,269

Deficit on continuing operations (1,598,702) (772,804) (987,485) (933,679) (998,269)

OTHER COMPREHENSIVE INCOME

Items subject to subsequent reclassification to net cost of services

Changes in asset revaluation reserve (70,027) - - - -

Total other comprehensive loss (70,027) - - - -

Total comprehensive loss (1,668,729) (772,804) (987,485) (933,679) (998,269)

Prepared on Australian Accounting Standards basis.

Entity Additional Estimates Statements — DIIS

47

Table 3.2.8: Schedule of budgeted assets and liabilities administered on behalf of Government (as at 30 June) 2014-15 Actual

$'000

2015-16 Revised budget $'000

2016-17 Forward estimate $'000

2017-18 Forward estimate $'000

2018-19 Forward estimate $'000

ASSETS Financial assets Cash and cash equivalents 125,849 112,965 106,979 103,943 103,943

Trade and other receivables 107,530 110,281 722,983 1,331,879 1,936,612

Other investments 4,086,762 4,020,914 3,995,069 3,938,511 3,894,233

Accrued revenue 93,661 95,174 83,615 72,439 58,591

Total financial assets 4,413,802 4,339,334 4,908,646 5,446,772 5,993,379

Non-financial assets Leasehold improvements 258 192 126 60 -

Property, plant and equipment 488 501 365 229 93

Intangibles 4,281 1,408 - - -

Total non-financial assets 5,027 2,101 491 289 93

Total assets administered on behalf of Government 4,418,829 4,341,435 4,909,137 5,447,061 5,993,472

LIABILITIES Payables Suppliers 7,507 7,259 7,197 7,197 7,197

Subsidies 67,787 64,830 46,773 4,369 4,369

Grants 83,175 80,982 80,982 80,982 80,982

Total payables 158,469 153,071 134,952 92,548 92,548

Provisions Employee provisions 1,113 1,113 1,113 1,113 1,113

Total provisions 1,113 1,113 1,113 1,113 1,113

Total liabilities administered on behalf of Government 159,582 154,184 136,065 93,661 93,661

Net assets 4,259,247 4,187,251 4,773,072 5,353,400 5,899,811

Prepared on Australian Accounting Standards basis.

Entity Additional Estimates Statements — DIIS

48

Table 3.2.9: Schedule of budgeted administered cash flows (for the period ended 30 June) 2014-15 Actual

$'000

2015-16 Revised budget $'000

2016-17 Forward estimate $'000

2017-18 Forward estimate $'000

2018-19 Forward estimate $'000

OPERATING ACTIVITIES Cash received Sales of goods and rendering of services - 2,508 2,598 2,598 2,508

Interest 1,550 1,387 1,189 991 793

Dividends 48,046 24,700 22,100 23,400 24,700

Fees 13,065 - - - -

Royalties 1,450,560 1,069,661 937,857 833,013 671,152

Net GST received 80,900 60,996 43,789 34,764 37,295

Other 40,764 148,261 132,206 114,811 111,620

Levy receipts 36,234 - - - -

Total cash received 1,671,119 1,307,513 1,139,739 1,009,577 848,068

Cash used Suppliers 455,635 139,125 88,254 86,382 106,310

Grants 690,537 712,570 465,786 441,272 398,162

Employees 4,309 6,700 7,500 7,500 7,500

Subsidies paid 716,970 260,911 193,984 107,213 -

Personal benefits 82,319 - - - -

Net GST paid - 60,996 43,789 34,764 37,295

Payments to corporate Commonwealth entities 1,222,164 947,464 1,013,120 1,038,559 1,085,126

Total cash used 3,171,934 2,127,766 1,812,433 1,715,690 1,634,393

Net cash from/(used by) operating activities (1,500,815) (820,253) (672,694) (706,113) (786,325)

INVESTING ACTIVITIES Cash received Repayments of advances and loans 15,220 2,500 67,551 132,602 197,654

Total cash received 15,220 2,500 67,551 132,602 197,654

Prepared on Australian Accounting Standards basis.

Entity Additional Estimates Statements — DIIS

49

Table 3.2.9: Schedule of budgeted administered cash flows (for the period ended 30 June) (continued) 2014-15 Actual

$'000

2015-16 Revised budget $'000

2016-17 Forward estimate $'000

2017-18 Forward estimate $'000

2018-19 Forward estimate $'000

Cash used Investments 21,444 43,164 30,273 5,200 1,240

Advances and loans made 22,049 - 1,000,000 1,000,000 1,000,000

Corporate Commonwealth Entity investments 96,439 35,916 47,712 25,069 35,558

Other 3,208 - - - -

Total cash used 143,140 79,080 1,077,985 1,030,269 1,036,798

Net cash used by investing activities (127,920) (76,580) (1,010,434) (897,667) (839,144)

FINANCING ACTIVITIES Cash from the Official Public Account for:

Appropriations 3,063,082 1,911,165 1,716,556 1,650,890 1,576,198

Capital Appropriations - Non Corporate Entitites 9,036 43,164 1,030,273 1,005,200 1,001,240

Capital Appropriations - Corporate Entitites 96,439 35,916 47,712 25,069 35,558

Special Accounts 58,659 155,605 52,088 30,036 20,900

GST Appropriations 91,372 60,996 43,789 34,764 37,295

Total cash received 3,318,588 2,206,846 2,890,418 2,745,959 2,671,191

Cash to the Official Public Account for:

Appropriations (1,561,114) (1,134,760) (1,061,028) (948,391) (790,451)

GST Appropriations (106,117) (60,996) (43,789) (34,764) (37,295)

Special Accounts (27,178) (114,257) (37,422) (28,922) (22,822)

Repayments of borrowings - - (65,051) (130,102) (195,154)

Total cash used (1,694,409) (1,310,013) (1,207,290) (1,142,179) (1,045,722)

Net cash from (used by) financing activities 1,624,179 896,833 1,683,128 1,603,780 1,625,469

Net increase (decrease) in cash held Cash and cash equivalents at beginning of reporting period 130,405 - - - -

Net increase or (decrease) in cash held (4,556) - - - -

Cash and cash equivalents at end of reporting period 125,849 - - - -

Prepared on Australian Accounting Standards basis.

Entity Additional Estimates Statements — DIIS

50

Table 3.2.10: Schedule of administered capital budget (for the period ended 30 June) 2014-15 Actual

$'000

2015-16 Revised budget $'000

2016-17 Forward estimate $'000

2017-18 Forward estimate $'000

2018-19 Forward estimate $'000

NEW CAPITAL APPROPRIATIONS Administered Assets and Liabilities - Bill 2 - 30,938 1,028,938 1,003,000 1,000,000

Total new capital appropriations - 30,938 1,028,938 1,003,000 1,000,000

Provided for:

Other Items - 30,938 1,028,938 1,003,000 1,000,000

Total Items - 30,938 1,028,938 1,003,000 1,000,000

Prepared on Australian Accounting Standards basis.

Entity Additional Estimates Statements — DIIS

51

Table 3.2.11: Statement of administered asset movements (2015-16 Budget year) Buildings $'000 Other property,

plant and equipment $'000

Computer software and intangibles $'000

Total $'000

As at 1 July 2015 Gross book value 258 487 9,766 10,511

Accumulated depreciation/amortisation and impairment - - (5,486) (5,486)

Opening net book balance 258 487 4,280 5,025

CAPITAL ASSET ADDITIONS Estimated expenditure on new or replacement assets By purchase - appropriation equity - 150 - 150

Total additions - 150 - 150

Other movements Depreciation/amortisation expense (66) (136) (2,872) (3,074)

Total other movements (66) (136) (2,872) (3,074)

As at 30 June 2016 Gross book value 258 637 9,766 10,661

Accumulated depreciation/amortisation and impairment (66) (136) (8,358) (8,560)

Closing net book balance 192 501 1,408 2,101

Prepared on Australian Accounting Standards basis.

52

Notes to the Financial Statements

Accounting Policy

The entity 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; and

 Australian Accounting Standards and Interpretations issued by the Australian Accounting Standards Board (AASB).

Departmental and Administered Items

Departmental assets, liabilities, revenues and expenses are those items that are controlled by the department that are used by the department in producing its outputs and include:

 computers, plant and equipment used in providing goods and services

 liabilities for employee entitlements

 revenue from appropriations or independent sources in payments for outputs

 employee, supplier and depreciation expenses incurred in providing entity outputs.

Administered items are those that the department does not control and which are subject to prescriptive rules or conditions established by legislation or Australian Government Policy, in order to achieve Australian Government outcomes.

53

COMMONWEALTH SCIENTIFIC AND INDUSTRIAL RESEARCH ORGANISATION Section 1: Entity overview and resources ............................................................. 55

1.1 Strategic direction statement .............................................................................. 55

1.2 Entity resource statement ................................................................................... 55

1.3 Entity Measures ................................................................................................. 57

1.4 Additional estimates and variations ..................................................................... 58

1.5 Breakdown of additional estimates by appropriation bill ...................................... 59

Section 2: Revisions to outcomes and planned performance .............................. 60

2.1 Outcomes and performance information ............................................................. 60

Section 3: Explanatory tables and budgeted financial statements ....................... 64

3.1 Explanatory tables .............................................................................................. 64

3.2 Budgeted financial statements ............................................................................ 64

55

COMMONWEALTH SCIENTIFIC AND INDUSTRIAL RESEARCH ORGANISATION

Section 1: Entity overview and resources

1.1 STRATEGIC DIRECTION STATEMENT

The Commonwealth Scientific and Industrial Research Organisation (CSIRO) is a statutory authority within the portfolio. The organisation’s primary functions are set out in the Science and Industry Research Act 1949. They are to:

(a) carry out scientific research for any of the following purposes:

- assisting Australian industry

- furthering the interests of the Australian community

- contributing to the achievement of Australian national objectives or the performance of the national and international responsibilities of the Commonwealth

- any other purpose determined by the Minister

(b) encourage or facilitate the application or utilisation of the results of such research.

Consistent with its outcome statement, CSIRO aims to deliver great science and innovative solutions for industry, society and the environment and to see its science used to make a profound and positive impact for the future of Australia and humanity.

In pursuing this outcome, CSIRO embraces its distinct role as a large-scale mission directed, multi-disciplinary science and technology organisation, and as trusted science advisor on the big issues facing the nation.

1.2 ENTITY RESOURCE STATEMENT

The Entity Resource Statement details the resourcing for CSIRO at Additional Estimates. Table 1.1 outlines the total resourcing available from all sources for the 2015-16 Budget year.

Entity Additional Estimates Statements — CSIRO

56

Table 1.1: CSIRO resource statement — Additional Estimates for 2015-16 as at Additional Estimates February 2016 Actual available appropriation

2014-15 $'000

Estimate as at Budget 2015-16 $'000

Proposed Additional Estimates 2015-16

$'000

Total estimate at Additional Estimates 2015-16

$'000

Opening balance/Reserves at bank 398,173 267,128 - 267,128

REVENUE FROM GOVERNMENT Ordinary annual services1 Outcome 1 745,268 749,681 600 750,281

Total ordinary annual services 745,268 749,681 600 750,281

Total annual appropriations 745,268 749,681 600 750,281

Total funds from Government 745,268 749,681 600 750,281

FUNDS FROM OTHER SOURCES Interest 12,140 7,422 425 7,847

Sale of goods and services 475,640 442,142 (16,305) 425,837

Other 6,728 92,537 (22,204) 70,333

Total 494,508 542,101 (38,084) 504,017

Total net resourcing for agency 1,637,949 1,558,910 (37,484) 1,521,426 1Appropriation Act (No. 1) 2015-16 and Appropriation Bill (No. 3) 2015-16. CSIRO is not directly appropriated as it is a Corporate Entity. Appropriations are made to the Department of Industry, Innovation and Science which are then paid to CSIRO and are considered ‘departmental’ for all purposes. Reader note: All figures are GST exclusive.

Entity Additional Estimates Statements — CSIRO

57

1.3 ENTITY MEASURES

Table 1.2 summarises new Government measures taken since the 2015-16 Budget. The table is split into revenue, expense and capital measures, with the affected programme identified.

Table 1.2: Entity 2015-16 measures since Budget Programme 2015-16 $'000 2016-17

$'000

2017-18 $'000

2018-19 $'000

Expense measures Stronger Farmers, Stronger Economy — TRANSIT 1.1 Departmental expenses 600 - - -

Total 600 - - -

National Innovation and Science Agenda — CSIRO Innovation Fund 1.1 Departmental expenses - 4,968 4,997 5,026

Total - 4,968 4,997 5,026

National Innovation and Science Agenda — Data61 1.1 Departmental expenses - 24,238 24,380 24,522

Total - 24,238 24,380 24,522

Departmental 600 29,206 29,377 29,548

Total 600 29,206 29,377 29,548

Capital measures National Innovation and Science Agenda — CSIRO Innovation Fund 1.1 Departmental capital - 10,000 10,000 10,000

Total - 10,000 10,000 10,000

Prepared on a Government Financial Statistics (fiscal) basis

Entity Additional Estimates Statements — CSIRO

58

1.4 ADDITIONAL ESTIMATES AND VARIATIONS

The following tables detail the changes to the resourcing for CSIRO at Additional Estimates, by outcome. Table 1.3 details the Additional Estimates and variations resulting from new measures since the 2015-16 Budget in Appropriation Bills Nos. 3 and 4. Table 1.4 details Additional Estimates or variations through other factors, such parameter adjustments.

Table 1.3: Additional estimates and variations to outcomes from measures since 2015-16 Budget Programme impacted

2015-16 $'000

2016-17 $'000

2017-18 $'000

2018-19 $'000

Outcome 1 Increase in estimates (departmental) Stronger Farmers, Stronger Economy - TRANSIT

1.1

600 - - -

National Innovation and Science Agenda - CSIRO Innovation Fund 1.1 - 14,968 14,997 15,026

National Innovation and Science Agenda - Data61 1.1 - 24,238 24,380 24,522

Net impact on estimates for Outcome 1 (departmental) 600 39,206 39,377 39,548

Table 1.4: Additional estimates and variations to outcomes from other variations Programme impacted 2015-16

$'000

2016-17 $'000

2017-18 $'000

2018-19 $'000

Outcome 1 Decrease in estimates (departmental) Parameter adjustments 1.1, 1.2 - - (663) (1,394)

Estimates Variations 1.1, 1.2 - (492) (815) (890)

Net impact on estimates for Outcome 1 (departmental) - (492) (1,478) (2,284)

Entity Additional Estimates Statements — CSIRO

59

1.5 BREAKDOWN OF ADDITIONAL ESTIMATES BY APPROPRIATION BILL

The following tables detail the Additional Estimates sought for CSIRO through Appropriation Bills Nos. 3 and 4.

Table 1.5: Appropriation Bill (No. 3) 2015-16 2014-15 Available $'000

2015-16 Budget $'000

2015-16 Revised $'000

Additional Estimates $'000

Reduced Estimates $'000

Departmental programmes Outcome 1

Innovative scientific and technology solutions to national challenges and opportunities to benefit industry, the environment and the community, through scientific research and capability development, services and advice.

745,268 749,681 750,281 600 -

Total departmental 745,268 749,681 750,281 600 -

Table 1.6: Appropriation Bill (No. 4) 2015-16 CSIRO has not received any additional appropriations from Appropriation Bill No.4; therefore Table 1.6 is not presented.

Entity Additional Estimates Statements — CSIRO

60

Section 2: Revisions to outcomes and planned performance

2.1 OUTCOMES AND PERFORMANCE INFORMATION

OUTCOME 1

Outcome 1 strategy

There has been no change to the high-level Outcome 1 strategy as a result of the 2015-16 Additional Estimates.

Entity Additional Estimates Statements — CSIRO

61

Table 2.1 Budgeted expenses for Outcome 1 Outcome 1: Innovative scientific and technology solutions to national challenges and opportunities to benefit industry, the environment and the community, through scientific research and capability development, services and advice.

2014-15 Actual expenses $'000

2015-16 Revised estimated expenses

$'000

Programme 1.1: Research - National Flagships, Science and Services Departmental expenses Ordinary annual services (Appropriation Act No. 1 and Bill No. 3) 636,514 650,695

Revenue from other independent sources1 431,943 444,159

Total for Programme 1.1 1,068,457 1,094,854

Program 1.2: National Research Infrastructure - National Facilities and Collections Departmental expenses Ordinary annual services (Appropriation Act No. 1 and Bill No. 3) 108,754 99,586

Revenue from other independent sources2 60,870 59,694

Total for Programme 1.3 169,624 159,280

Program 1.3: Science and Industry Endowment Fund Departmental expenses Revenue from other independent sources3 24,095 23,759

Total for Programme 1.2 24,095 23,759

Outcome 1 Totals by resource type Departmental expenses Departmental appropriation(a) 745,268 750,281

Revenue from other independent sources 516,908 527,612

Revenue from Government Ordinary annual services (Appropriation Act No. 1 and Bill No. 3) 745,268 750,281

Revenues from other independent sources 516,908 527,612

Total expenses for Outcome 1 1,262,176 1,277,893

2014-15 2015-16

Average Staffing Level (number) 4,967 4,970 1This includes the approved operating loss for Research - National Flagships, Science and Services. 2This includes the approved operating loss for National Research Infrastructure - National Facilities and Collections. 3This includes the approved operating loss for the Science and Industry Endowment Fund.

Entity Additional Estimates Statements — CSIRO

62

Programme 1.1: Research - National Flagships, Science and Services

Programme objective

There has been no change to the programme objective since the 2015-16 Budget.

Programme Expenses 1:1: 2014-15 Actual $'000

2015-16 Revised budget $'000

2016-17 Forward year 1 $'000

2017-18 Forward year 2 $'000

2018-19 Forward year 3 $'000

Annual departmental expenses:

Programme support 1,068,457 1,094,854 1,139,096 1,149,549 1,184,787

Total programme expenses 1,068,457 1,094,854 1,139,096 1,149,549 1,184,787

Programme deliverables

There has been no change to programme deliverables since the 2015-16 Budget.

Programme 1.2: National Research Infrastructure - National Facilities and Collections

Programme objective

There has been no change to the programme objective since the 2015-16 Budget.

Programme Expenses 1:2: 2014-15 Actual $'000

2015-16 Revised budget $'000

2016-17 Forward year 1 $'000

2017-18 Forward year 2 $'000

2018-19 Forward year 3 $'000

Annual departmental expenses:

Programme support 169,624 159,280 162,239 163,872 174,613

Total programme expenses 169,624 159,280 162,239 163,872 174,613

Programme deliverables

There has been no change to programme deliverables since the 2015-16 Budget.

Entity Additional Estimates Statements — CSIRO

63

Programme 1.3: Science and Industry Endowment Fund

Programme objective

There has been no change to the programme objective since the 2015-16 Budget.

Programme Expenses 1:3: 2014-15 Actual $'000

2015-16 Revised budget $'000

2016-17 Forward year 1 $'000

2017-18 Forward year 2 $'000

2018-19 Forward year 3 $'000

Annual departmental expenses:

Programme support 24,095 23,759 25,006 17,674 16,731

Total programme expenses 24,095 23,759 25,006 17,674 16,731

Programme deliverables

There has been no change to programme deliverables since the 2015-16 Budget.

Entity Additional Estimates Statements — CSIRO

64

Section 3: Explanatory tables and budgeted financial Statements

3.1 EXPLANATORY TABLES

Estimates of special account flows

Special Accounts provide a means to set aside and record amounts used for specified purposes. CSIRO has no special accounts; therefore Table 3.1.1 is not presented.

3.2 BUDGETED FINANCIAL STATEMENTS

3.2.1 Analysis of budgeted financial statements

The revised budgeted financial statements for CSIRO are presented in this section.

3.2.2 Budgeted financial statements

CSIRO’s budgeted financial statements are presented on a consolidated basis in accordance with AASB 10 (Consolidated Financial Statements). The consolidated financial statements incorporate the assets and liabilities and the results of all entities controlled by CSIRO as defined by AASB 10.

CSIRO has an approved operating loss of $65.3 million in 2015-16, $58.6 million in 2016-17, $44.4 million in 2017-18 and $38.8 million in 2018-19, predominantly due to the distribution of funds by the Science and Industry Endowment Fund and unfunded depreciation expenses relating to assets for which capital was previously provided by Government through the Education Investment Fund and the National Collaborative Research Infrastructure Strategy.

Entity Additional Estimates Statements — CSIRO

65

Table 3.2.1: Comprehensive income statement (showing net cost of services) for the period ended 30 June. 2014-15 Actual

$'000

2015-16 Revised budget $'000

2016-17 Forward estimate $'000

2017-18 Forward estimate $'000

2018-19 Forward estimate $'000

EXPENSES Employee benefits 667,548 665,863 689,253 698,206 708,143

Suppliers 430,048 443,103 468,154 465,047 505,434

Depreciation and amortisation 146,094 166,682 166,884 165,792 160,504

Finance costs 1,093 - - - -

Write-down and impairment of assets 225 - - - -

Losses from asset sales 14,378 - - - -

Other expenses 2,790 2,245 2,050 2,050 2,050

Total expenses 1,262,176 1,277,893 1,326,341 1,331,095 1,376,131

LESS: OWN-SOURCE INCOME Own-source revenue Sale of goods and rendering of services 440,090 434,810 453,485 463,094 478,584

Interest 12,946 7,161 7,903 8,031 7,588

Other 22,630 20,389 18,456 18,841 19,294

Total own-source revenue 475,666 462,360 479,844 489,966 505,466

Gains Sale of assets 6,722 - - - -

Other (300) - - - -

Total gains 6,422 - - - -

Total own-source income 482,088 462,360 479,844 489,966 505,466

Net cost of (contribution by) services 780,088 815,533 846,497 841,129 870,665

Revenue from Government 745,268 750,281 787,861 796,746 831,897

Surplus/(deficit) attributable to the Australian Government (34,820) (65,252) (58,636) (44,383) (38,768)

Total comprehensive income/(loss) attributable to the Australian Government (34,820) (65,252) (58,636) (44,383) (38,768) Prepared on Australian Accounting Standards basis.

Entity Additional Estimates Statements — CSIRO

66

Table 3.2.2: Budgeted departmental balance sheet (as at 30 June) 2014-15 Actual $'000

2015-16 Revised budget $'000

2016-17 Forward estimate $'000

2017-18 Forward estimate $'000

2018-19 Forward estimate $'000

ASSETS Financial assets Cash and cash equivalents 267,128 192,687 197,412 200,838 213,680

Trade and other receivables 73,482 55,598 57,900 59,318 60,510

Investments accounted for under the equity method 10 10,010 10,010 10,010 10,010

Other investments 12,601 12,601 22,601 32,601 42,601

Total financial assets 353,221 270,896 287,923 302,767 326,801

Non-financial assets Land and buildings 1,604,301 1,605,093 1,566,469 1,537,744 1,507,804

Property, plant and equipment 597,147 588,291 571,160 560,120 545,178

Investment property 49,292 49,292 49,292 49,292 49,292

Intangibles 21,376 18,152 14,928 11,704 8,480

Inventories 1,235 1,235 1,235 1,235 1,235

Other non-financial assets 125,216 54,174 50,750 50,750 50,750

Total non-financial assets 2,398,567 2,316,237 2,253,834 2,210,845 2,162,739 Assets held for sale Total assets 2,751,788 2,587,133 2,541,757 2,513,612 2,489,540

LIABILITIES Payables Suppliers 44,343 38,645 35,643 35,625 34,693

Other payables 191,891 132,433 131,622 132,243 132,141

Total payables 236,234 171,078 167,265 167,868 166,834

Interest bearing liabilities Loans Leases 48,725 48,725 48,725 48,725 48,725

Deposits 5,559 5,559 5,559 5,559 5,559

Total interest bearing liabilities 54,284 54,284 54,284 54,284 54,284

Provisions Employee provisions 223,333 189,087 196,160 201,794 207,525

Total provisions 223,333 189,087 196,160 201,794 207,525

Total liabilities 513,851 414,449 417,709 423,946 428,643

Net assets 2,237,937 2,172,684 2,124,048 2,089,666 2,060,897

Prepared on Australian Accounting Standards basis.

Entity Additional Estimates Statements — CSIRO

67

Table 3.2.2: Budgeted departmental balance sheet (as at 30 June) (continued) 2014-15 Actual $'000

2015-16 Revised budget $'000

2016-17 Forward estimate $'000

2017-18 Forward estimate $'000

2018-19 Forward estimate $'000

EQUITY* Parent entity interest Contributed equity 270,954 270,954 280,954 290,954 300,954

Reserves 1,388,651 1,388,650 1,388,650 1,388,650 1,388,650

Retained surplus/(accumulated deficit) 578,332 513,080 454,444 410,062 371,293

Total parent entity interest 2,237,937 2,172,684 2,124,048 2,089,666 2,060,897

Total Equity 2,237,937 2,172,684 2,124,048 2,089,666 2,060,897

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

Entity Additional Estimates Statements — CSIRO

68

Table 3.2.3: Departmental statement of changes in equity — summary of movement (Budget Year 2015-16) Retained earnings

$'000

Asset

revaluation reserve $'000

Other reserves $'000

Contributed equity/ capital $'000

Total equity $'000

Opening balance as at 1 July 2015

Balance carried forward from previous period 578,332 1,389,395 (745) 270,954 2,237,936

Adjusted opening balance 578,332 1,389,395 (745) 270,954 2,237,936

Comprehensive income Surplus/(deficit) for the period (65,252) - - - (65,252)

Total comprehensive income (65,252) - - - (65,252)

Estimated closing balance as at 30 June 2016 513,080 1,389,395 (745) 270,954 2,172,684

Closing balance attributable to the Australian Government 513,080 1,389,395 (745) 270,954 2,172,684

Prepared on Australian Accounting Standards basis

Entity Additional Estimates Statements — CSIRO

69

Table 3.2.4: Budgeted departmental statement of cash flows (for the period ended 30 June) 2014-15 Actual

$'000

2015-16 Revised budget $'000

2016-17 Forward estimate $'000

2017-18 Forward estimate $'000

2018-19 Forward estimate $'000

OPERATING ACTIVITIES Cash received Appropriations 745,268 750,281 787,861 796,746 831,897

Sale of goods and rendering of services 475,640 425,837 450,149 462,259 477,016

Interest 12,140 7,847 8,046 8,158 8,038

Net GST received 34,037 73,043 67,997 69,222 71,704

Other - 35,233 18,451 18,836 19,289

Total cash received 1,267,085 1,292,241 1,332,504 1,355,221 1,407,944

Cash used Employees 724,132 700,109 682,180 692,572 702,411

Suppliers 433,049 508,992 475,520 466,920 508,136

Borrowing costs 2,536 2,245 2,050 2,050 2,050

Net GST paid 25,124 64,356 65,322 67,450 70,105

Other 7,913 27 - - -

Total cash used 1,192,754 1,275,729 1,225,072 1,228,992 1,282,702

Net cash from/(used by) operating activities 74,331 16,512 107,432 126,229 125,242

INVESTING ACTIVITIES Cash received Proceeds from sales of property, plant and equipment 4,402 35,100 5,200 - -

Total cash received 4,402 35,100 5,200 - -

Cash used Purchase of property, plant, equipment and intangibles 167,637 126,055 107,905 122,803 112,400

Investments - - 10,000 10,000 10,000

Other 11,821 - - - -

Total cash used 179,458 126,055 117,905 132,803 122,400

Net cash from/(used by) investing activities (175,056) (90,955) (112,705) (132,803) (122,400)

Prepared on Australian Accounting Standards basis.

Entity Additional Estimates Statements — CSIRO

70

Table 3.2.4: Budgeted departmental statement of cash flows (for the period ended 30 June) (continued) 2014-15 Actual

$'000

2015-16 Revised budget $'000

2016-17 Forward estimate $'000

2017-18 Forward estimate $'000

2018-19 Forward estimate $'000

FINANCING ACTIVITIES Cash received Contributed equity 2,326 - 10,000 10,000 10,000

Total cash received 2,326 - 10,000 10,000 10,000

Cash used Repayments of borrowings 4,750 - - - -

Dividends paid 27,896 - - - -

Total cash used 32,646 - - - -

Net cash used by financing activities (30,320) - 10,000 10,000 10,000

Net increase/(decrease) in cash held (131,045) (74,443) 4,727 3,426 12,842

Cash and cash equivalents at the beginning of the reporting period 398,173 267,128 192,685 197,413 200,839

Cash and cash equivalents at the end of the reporting period 267,128 192,685 197,412 200,839 213,681

Prepared on Australian Accounting Standards basis.

Entity Additional Estimates Statements — CSIRO

71

Table 3.2.5: Departmental capital budget statement (for the period ended 30 June) 2014-15 Actual

$'000

2015-16 Revised budget $'000

2016-17 Forward estimate $'000

2017-18 Forward estimate $'000

2018-19 Forward estimate $'000

NEW CAPITAL APPROPRIATIONS Equity injections - Act No. 2 - - 10,000 10,000 10,000

Total new capital appropriations - - 10,000 10,000 10,000

PURCHASE OF NON-FINANCIAL ASSETS

Funded internally from departmental resources1 195,688 126,055 107,905 122,803 112,400

TOTAL AMOUNT SPENT 195,688 126,055 107,905 122,803 112,400

RECONCILIATION OF CASH USED TO ACQUIRE ASSETS TO ASSET MOVEMENT TABLE

Total purchases 195,688 126,055 107,905 122,803 112,400

TOTAL CASH REQUIRED TO ACQUIRE ASSETS 195,688 126,055 107,905 122,803 112,400 1Includes the following sources of funding: - current and prior year Act (No. 1) and Bills 3 appropriations (excluding amounts from the DCB) - donations and contributions - gifts - internally developed assets - s74 Retained Revenue Receipts - proceeds from the sale of assets. Prepared on Australian Accounting Standards basis.

72

Entity Additional Estimates Statement

— CSIRO

Table 3.2.6: Statement of asset movements (2015-16 Budget year) Land $'000 Buildings

$'000

Other

property, plant and equipment $'000

Heritage and cultural $'000

Investment property $'000

Computer software and intangibles $'000

L&B, IP&E held for sale $'000

Total $'000

As at 1 July 2015 Gross book value 382,413 2,593,167 1,145,278 11,947 49,292 51,024 8,195 4,241,316

Accumulated depreciation/amortisation and impairment - (1,371,279) (548,131) (7,741) - (29,648) (2,995) (1,959,794)

Opening net book balance 382,413 1,221,888 597,147 4,206 49,292 21,376 5,200 2,281,522

Capital asset additions Estimated expenditure on new or replacement assets By purchase - other - 59,855 66,200 - - - - 126,055

Total additions - 59,855 66,200 - - - - 126,055

Other movements Assets held for sale or in a disposal group held for sale - - - - - - 38,000 38,000

Depreciation/amortisation expense - (88,402) (75,056) - - (3,224) - (166,682)

Other (35,100) 64,440 - - - - (38,000) (8,660)

Total other movements (35,100) (23,962) (75,056) - - (3,224) - (137,342)

As at 30 June 2016 Gross book value 347,313 2,717,462 1,211,478 11,947 49,292 51,024 8,195 4,396,711

Accumulated depreciation/amortisation and impairment - (1,459,681) (623,187) (7,741) - (32,872) (2,995) (2,126,476)

Closing net book balance 347,313 1,257,781 588,291 4,206 49,292 18,152 5,200 2,270,235

.

Prepared on Australian Accounting Standards basis.

Entity Additional Estimates Statement — CSIRO

73

Table 3.2.7: Schedule of budgeted income and expenses administered on behalf of Government (for the period ended 30 June) CSIRO has no budgeted income and expenses administered on behalf of Government; therefore 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) CSIRO has no budgeted assets and liabilities administered on behalf of Government; therefore Table 3.2.8 is not presented.

Table 3.2.9: Schedule of budgeted administered cash flows (for the period ended 30 June) CSIRO has no budgeted administered cash flows; therefore Table 3.2.9 is not presented.

Table 3.2.10: Schedule of administered capital budget (for the period ended 30 June) CSIRO has no administered capital budget; therefore Table 3.2.10 is not presented.

Table 3.2.11: Statement of administered asset movements (2015-16 Budget year) CSIRO has no administered assets; therefore Table 3.2.11 is not presented.

Notes to the financial statements

The CSIRO’s budgeted financial statements are presented on a consolidated basis in accordance with AASB 127 (Consolidated and Separate Financial Statements). The consolidated financial statements incorporate the assets and liabilities and the results of all entities controlled by CSIRO as defined by AASB 127 (being the Science and Industry Endowment Fund, WLAN Services Pty Ltd and the Fundacion CSIRO Chile Research).