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Estimates—Portfolio additional estimates statements—Portfolios and executive departments—Treasury portfolio—2015-16


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Portfolio Additional Estimates Statements 2015-16

Treasury Portfolio

Explanations of Additional Estimates 2015-16

© Commonwealth of Australia 2016

ISBN 978-1-925220-81-0

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TREASURER

PARLIAMENT HOUSE CANBERRA 2600

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

I hereby submit Portfolio Additional Estimates Statements in support of the 2015-16 Additional Estimates for the Treasury Portfolio.

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

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

Yours sincerely

HON S. MORRISON MP

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nfp not for publication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.

The Australian Capital Territory and the Northern Territory are referred to as ‘the territories’. References to the ‘states’ or ‘each state’ includes the territories.

Enquiries Should you have any enquiries regarding this publication please contact Mr. Matthew King, Chief Finance Officer in the Department of the Treasury on (02) 6263 2111.

A copy of this document 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, 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 Portfolio Budget 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 s.15AB of the Acts Interpretation Act 1901.

Whereas the Mid-Year Economic and Fiscal Outlook 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

Entity additional estimates statements ...................................................................... 7

Department of the Treasury ............................................................................................ 9

Australian Competition and Consumer Commission .................................................... 35

Australian Securities and Investments Commission ..................................................... 55

Australian Taxation Office ............................................................................................. 79

PORTFOLIO OVERVIEW

3

PORTFOLIO OVERVIEW

There has been no significant change to the portfolio overview, portfolio responsibilities or entity outcomes from that included in the Portfolio Budget Statements 2015-16 (pages 3-5).

As a result of the Administrative Arrangements Orders in September 2015, portfolio responsibility for the Clean Energy Finance Corporation was transferred to the Department of the Environment.

Additional estimates are being sought for the Department of the Treasury, the Australian Competition and Consumer Commission, the Australian Securities and Investments Commission and the Australian Taxation Office. Explanations of additional estimates for these agencies are detailed in their respective section in the Portfolio Additional Estimates Statements.

There are no additional estimates for the Australian Bureau of Statistics, the Australian Office of Financial Management, the Australian Prudential Regulation Authority, the Commonwealth Grants Commission, the Inspector-General of Taxation, the National Competition Council, the Office of the Auditing and Assurance Standards Board, the Office of the Australian Accounting Standards Board, the Productivity Commission or the Royal Australian Mint.

Portfolio Overview

4

Figure 1: Treasury portfolio structure and outcomes

Portfolio Minister — Treasurer The Hon Scott Morrison MP

Minister for Small Business and Assistant Treasurer The Hon Kelly O'Dwyer MP

Assistant Minister to the Treasurer The Hon Alex Hawke MP

Department of the Treasury Secretary: Mr John Fraser

Informed decisions on the development and implementation of policies to improve the wellbeing of the Australian people, including by achieving strong, sustainable economic growth, through the provision of advice to government and the efficient administration of federal financial relations

Australian Bureau of Statistics Australian Statistician: Mr David Kalisch

Informed decision-making, research and discussion within governments and the community by leading the collection, analysis and provision of high quality, objective and relevant statistical information

Australian Competition and Consumer Commission Chairman: Mr Rod Sims

Lawful competition, consumer protection, and regulated national infrastructure markets and services through regulation, including enforcement, education, price monitoring and determining the terms of access to infrastructure services

Australian Office of Financial Management Chief Executive Officer: Mr Rob Nicholl

The advancement of macroeconomic growth and stability, and the effective operation of financial markets, through issuing debt, investing in financial assets and managing debt, investments and cash for the Australian Government

Australian Prudential Regulation Authority Chairman: Mr Wayne Byres

Enhanced public confidence in Australia's financial institutions through a framework of prudential regulation which balances financial safety and efficiency, competition, contestability and competitive neutrality

Australian Securities and Investments Commission Chairman: Mr Greg Medcraft

Improved confidence in Australia’s financial markets through promoting informed investors and financial consumers, facilitating fair and efficient markets and delivering efficient registry systems

Australian Taxation Office Commissioner: Mr Chris Jordan AO

Confidence in the administration of aspects of Australia's taxation and superannuation systems through helping people understand their rights and obligations, improving ease of compliance and access to benefits, and managing non-compliance with the law

Portfolio Overview

5

Figure 1: Treasury Portfolio Structure and Outcomes (continued)

Commonwealth Grants Commission Secretary: Mr John Spasojevic

Informed Government decisions on fiscal equalisation between the States and Territories through advice and recommendations on the distribution of GST revenue and health care grants

Inspector-General of Taxation Inspector-General: Mr Ali Noroozi

Improved tax administration through community consultation, review and independent advice to Government

National Competition Council President: Mr David Crawford

Competition in markets that are dependent on access to nationally significant monopoly infrastructure, through recommendations and decisions promoting the efficient operation of, use of and investment in infrastructure

Office of the Auditing and Assurance Standards Board Chairman: Ms Merran Kelsall

The formulation and making of auditing and assurance standards that are used by auditors of Australian entity financial reports or for other auditing and assurance engagements

Office of the Australian Accounting Standards Board Chairman: Ms Kris Peach

The formulation and making of accounting standards that are used by Australian entities to prepare financial reports and enable users of these reports to make informed decisions

Productivity Commission Chairman: Mr Peter Harris

Well-informed policy decision-making and public understanding on matters relating to Australia’s productivity and living standards, based on independent and transparent analysis from a community-wide perspective

Royal Australian Mint Chief Executive Officer: Mr Ross MacDiarmid

The coinage needs of the Australian economy, collectors and foreign countries are met through the manufacture and sale of circulating coins, collector coins and other minted like products

Portfolio Overview

6

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 ($'000)

Appropriation Bill No. 4 ($'000)

Special

appropriation ($'000)

Receipts

($'000)

Total

($'000)

Department of the Treasury Administered appropriations 1,400 - - - 1,400

Departmental appropriations 1,768 - - - 1,768

Total: 3,168 - - - 3,168

Australian Competition and Consumer Commission

Administered appropriations - - - - -

Departmental appropriations 2,524 11,596 - - 14,120

Total: 2,524 11,596 - - 14,120

Australian Securities and Investments Commission

Administered appropriations 633 - - - 633

Departmental appropriations - 3,508 - - 3,508

Total: 633 3,508 - - 4,141

Australian Taxation Office Administered appropriations - - - - -

Departmental appropriations 46,226 74,025 - - 120,251

Total: 46,226 74,025 - - 120,251

141,680 Resources available within portfolio:

ENTITY ADDITIONAL ESTIMATES STATEMENTS

9

DEPARTMENT OF THE TREASURY Section 1: Entity overview and resources ................................................................ 11

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

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

1.3 Entity measures .................................................................................................. 14

1.4 Additional estimates and variations .................................................................... 16

1.5 Breakdown of additional estimates by appropriation bill .................................... 18

Section 2: Revisions to outcomes and planned performance ............................... 19

2.1 Outcomes and performance information ............................................................ 19

Section 3: Explanatory tables and budgeted financial statements ....................... 22

3.1 Explanatory tables .............................................................................................. 22

3.2 Budgeted financial statements ........................................................................... 23

11

DEPARTMENT OF THE TREASURY

Section 1: Entity overview and resources

1.1 STRATEGIC DIRECTION STATEMENT

There has been no significant change to the strategic direction of the Department of the Treasury (the Treasury) from that outlined in the Portfolio Budget Statements 2015-16 (pages 16-18).

As a result of the Administrative Arrangements Orders in September 2015 the Northern Australian Infrastructure Incentive Facility was transferred from the Treasury to the Department of Industry, Innovation and Science. The Administrative Arrangements Orders also transferred responsibility for the administration of the Clean Energy Finance Corporation (CEFC) special account from the Treasury to the Department of the Environment.

The Treasury is seeking an additional $1.8 million in departmental funding through Appropriation Bill (No. 3) 2015-16. This comprises an additional $1.2 million for the Asian Infrastructure Investment Bank measure and $0.7 million for the capability review of the Australian Securities and Investments Commission measure outlined in the Mid-Year Economic and Fiscal Outlook 2015-16. This additional funding is offset by a reduction of $0.1 million relating to the Public Sector Superannuation Accumulation Plan administration fees as outlined in the Mid-Year Economic and Fiscal Outlook 2014-15.

The Treasury is seeking an additional $1.4 million in administered funding through Appropriation Bill (No. 3) 2015-16 to provide additional services under the Australian Small Business Advisory Service (ASBAS) programme as outlined in the Mid-Year Economic and Fiscal Outlook 2015-16.

1.2 ENTITY RESOURCE STATEMENT

The Entity Resource Statement details the resourcing for the Treasury 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 Nos. 3 and 4, Special Appropriations and Special Accounts.

Additional Estimates Statements — Department of the Treasury

12

Table 1.1: Treasury 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(a) Departmental appropriation Prior year departmental appropriation(b) 56,814 62,240 - 62,240

Departmental appropriation(c) 178,140 163,653 1,768 165,421

s.74 Retained Revenue Receipts(d) 15,425 10,521 - 10,521

Total 250,379 236,414 1,768 238,182

Administered expenses Outcome 1 86,568 36,724 1,400 38,124

Total 86,568 36,724 1,400 38,124

Total ordinary annual services [A] 336,947 273,138 3,168 276,306

Other services(e) Administered expenses Departmental non-operating Equity injections 1,595 1,700 - 1,700

Total 1,595 1,700 - 1,700

Total other services [B] 1,595 1,700 - 1,700

Total available annual appropriations [A+B] 338,542 274,838 3,168 278,006

Special appropriations Special appropriations limited by criteria/entitlement Asian Development Bank

(Additional Subscription) Act 2009 16,979 28,030 - 28,030

Asian Infrastructure Investment Bank Act 2015 - - 201,128 201,128

Federal Financial Relations Act 2009 73,296,353 77,033,023 631,785 77,664,808

International Monetary Agreements Act 1947 54,453 1,994,862 83,959 2,078,821

PGPA Act 2013 - s.77 repayments 2,871 1,000 - 1,000

Total special appropriations [C] 73,370,656 79,056,915 916,872 79,973,787

Total appropriations excluding Special Accounts [A+B+C] 73,709,198 79,331,753 920,040 80,251,793

Special Accounts Opening balance(f) 870,846 2,921,446 (2,918,814) 2,632

Appropriation Receipts(g) 2,000,000 - - -

Non-appropriation receipts to Special Accounts 11,574,269 13,033,492 (308,907) 12,724,585

Total Special Accounts [D] 14,445,115 15,954,938 (3,227,721) 12,727,217

Additional Estimates Statements — Department of the Treasury

13

Table 1.1: Treasury 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

Total resourcing [A+B+C+D] 88,154,313 95,286,691 (2,307,681) 92,979,010

Less appropriations drawn from annual or special appropriations above and credited to special accounts 2,000,000 - - -

Total net resourcing for the Treasury(g) 86,154,313 95,286,691 (2,307,681) 92,979,010

(a) Appropriation Act (No. 1) 2015-2016 and Appropriation Bill (No. 3) 2015-2016. (b) Estimated adjusted balance carried from previous year for annual appropriations. (c) Includes an amount of $5.3m in 2015-16 for the Departmental Capital Budget (refer to table 3.2.5 for further details). For accounting purposes this amount has been designated as ‘contributions by owners’. The estimate as at Budget for 2015-16 incorporates the transfer of funding of $1.0 million from the

Treasury to the Department of Industry, Innovation and Science for the Northern Australia Infrastructure Incentive Facility. (d) Estimated retained revenue receipts under s. 74 of the Public Governance, Performance and Accountability (PGPA) Act 2013. (e) Appropriation Act (No. 2) 2015-2016 and Appropriation Bill (No. 4) 2015-2016. (f) Estimated opening balance for special accounts (less ‘special public money’ held in Services for Other

Entities and Trust Moneys Special Accounts (SOETM)). For further information on special accounts refer to Table 3.1.1. The revised opening balance estimate for 2015-16 has been reduced to reflect the transfer of the CEFC special account to the Department of the Environment. (g) Total resourcing for the Treasury will be effected by s. 75 transfers of appropriations (refer to table 1.4 for further details). Reader note: All figures are GST exclusive. These figures may not match figures in the cash flow statement.

Table 1.1: Treasury resource statement — Additional estimates for 2015-16 as at additional estimates February 2016 (continued)

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 on behalf of other entities (a) Finance (b) 68,182 -

Health (c) 239,678 46,891

Infrastructure and Regional Development 179,920 122,920

Social Services 107,716 158,510

(a) These payments relate to National Partnership payments to the states. (b) As outlined in the Mid-Year Economic and Fiscal Outlook 2015-16, access to the DisabilityCare Australia Fund will be determined through negotiations between the Commonwealth and the states. The maximum amount of funding available to the states is set out in the DisabilityCare Australia Fund

Act 2013. (c) The revision to estimates reflects the change in funding arrangements for health infrastructure projects, which will be funded from the COAG Reform Fund Special Account. This change was part of the Medical Research Future Fund - establishment measure as outlined in the Budget Paper No.2, Budget

Measures 2014-15.

Additional Estimates Statements — Department of the Treasury

14

1.3 ENTITY MEASURES

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

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

$'000

2017-18 $'000

2018-19 $'000

Expense measures Asian Infrastructure Investment Bank Departmental expenses 1.1 1,188 1,181 949 958

Asset Recycling Initiative — redirection of funding Administered expenses 1.9 - - - -

Assistance for Queensland Banana Growers — Panama disease Tropical Race 4 Administered expenses 1.9 - - - -

Capability Review of the Australian Securities and Investments Commission Departmental expenses 1.1 - - - -

Disaster relief — additional funding Administered expenses 1.7 4,688 8,688 - -

Financial Stability Fund — not proceeding Administered expenses 1.1 (168) (600) (1,074) (1,583)

Health Services in Tasmania — additional funding Administered expenses 1.9 10,663 10,000 - -

Indirect Tax Concession Scheme — diplomatic and consular concessions Administered expenses 1.4 - - - -

Mental Health — streamlining Administered expenses 1.9 - - - -

National Disability Insurance Scheme — transition to full scheme Administered expenses 1.9 (339,236) (328,803) (350,862) (362,195)

National Immunisation Programme — new and amended listings Administered expenses 1.9 (3) (20) (51) (68)

Next Generation Manufacturing Programme — additional funding Administered expenses 1.9 (10,000) (10,000) (9,124) -

Our North, Our Future - business, trade and investment gateway Administered expenses 1.9 - - - -

- road and rail infrastructure Administered expenses 1.9 - - - -

Additional Estimates Statements — Department of the Treasury

15

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

$'000

2017-18 $'000

2018-19 $'000

South Australia - upgrading the last mile Administered expenses 1.9 - - - -

Strengthening Australia’s Foreign Investment Framework — continuation Administered expenses 1.9 - - - -

Stronger Farmers, Stronger Economy - National Water Infrastructure Development Fund Administered expenses 1.9 - - - -

- new drought management framework Administered expenses 1.9 - - - -

- strengthening research, skills and management of natural resources Administered expenses 1.9 - - - -

Public Sector Superannuation Accumulation Plan administration fees (a) Departmental expenses 1.1 (66) (66) (66) (66)

Public Sector Savings - Enterprise Resource Planning Systems (b) Departmental expenses 1.1 - - (94) (114)

Syrian and Iraqi Humanitarian Crisis Administered expenses 1.5/1.4 3,637 15,619 18,803 19,964

Tasmania — horticulture growth project Administered expenses 1.9 50 - - -

Tasmanian Forests — saving Administered expenses 1.9 - - - -

Tasmanian Wilderness World Heritage Area — contribution Administered expenses 1.9 - - - -

Total expense measures (329,247) (304,001) (341,519) (343,104)

Administered (330,369) (305,116) (342,308) (343,882)

Departmental 1,122 1,115 789 778

Capital measures Asian Infrastructure Investment Bank Administered 1.1 - - - -

Total capital measures - - - -

Total (329,247) (304,001) (341,519) (343,104)

(a) This measure was announced in the Mid-Year Economic and Fiscal Outlook 2014-15 as a cross portfolio measure and has not previously appeared in a portfolio statement. (b) This measure was announced in Budget 2015-16 as a cross-portfolio measure and has not previously appeared in a portfolio statement. Prepared on a Government Financial Statistics (fiscal) basis.

Additional Estimates Statements — Department of the Treasury

16

1.4 ADDITIONAL ESTIMATES AND VARIATIONS

The following tables detail the changes to the resourcing for the Treasury 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 2015-16 $'000

2016-17 $'000

2017-18 $'000

2018-19 $'000

Outcome 1 Increase in estimates (administered) Our North, Our Future - Business Trade and Investment Gateway

(ASBAS) (a) 1.3 1,400 1,400 1,400 -

Net impact on estimates for Outcome 1 (administered) 1,400 1,400 1,400 -

Increase in estimates (departmental) Asian Infrastructure Investment Bank (a) 1.1 1,188 1,181 949 958

Capability Review of Australian Securities and Investments Commission (a) 1.1 646 - - -

Decrease in estimates (departmental) Public Sector Superannuation Accumulation Plan administration fees (b) 1.1 (66) (66) (66) (66)

Public Sector Savings - Enterprise Resource Planning Systems (c) 1.1 - - (94) (114)

Net impact on estimates for Outcome 1 (departmental) 1,768 1,115 789 778

(a) The Asian Infrastructure Investment Bank, ASBAS, and Capability Review of Australian Securities and Investments Commission measures were outlined in the Mid-Year Economic and Fiscal Outlook 2015-16.

(b) This measure was announced in the Mid-Year Economic and Fiscal Outlook 2014-15 as a cross portfolio measure and has not previously appeared in a portfolio statement. (c) This measure was announced in Budget 2015-16 as a cross-portfolio measure and has not previously appeared in a portfolio statement.

Additional Estimates Statements — Department of the Treasury

17

Table 1.4: Additional estimates and variations to outcomes from other variations Programme 2015-16 $'000 2016-17

$'000

2017-18 $'000

2018-19 $'000

Outcome 1 Decrease in estimates (departmental) Northern Australia Infrastructure Incentive Facility(a) 1.1 (1,000) (1,500) (2,000) (2,000)

Adjustments to reflect movements in indices relating to prices and wages 1.1 - - (151) (304)

Net impact on estimates for Outcome 1 (departmental) (1,000) (1,500) (2,151) (2,304)

Decrease in estimates (capital) Adjustments to reflect movements in indices relating to prices and wages 1.1 - - (5) (11)

Net impact on estimates for Outcome 1 (capital) - - (5) (11)

(a) Relates to the transfer of funding from the Treasury to the Department of Industry, Innovation and Science for the Northern Australia Infrastructure Incentive Facility as a result of the Administrative Arrangements Orders of September 2015.

Additional Estimates Statements — Department of the Treasury

18

1.5 BREAKDOWN OF ADDITIONAL ESTIMATES BY APPROPRIATION BILL

The following table detail the Additional Estimates sought for the Treasury through Appropriation Bill No. 3. There were no Additional Estimates sought for Appropriation Bill No. 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

Outcome 1 - Informed decisions on the development and implementation of policies to improve the wellbeing of the Australian people, including by achieving strong, sustainable economic growth, through the provision of advice to government and the efficient administration of federal financial relations

Departmental items (a) 234,954 163,653 165,421 1,768 -

Administered items 86,568 36,724 38,124 1,400

Total 321,522 200,377 203,545 3,168 -

(a) The estimate as at the Budget 2015-16 incorporates the transfer of funding of $1.0 million from the Treasury to the Department of Industry, Innovation and Science for the Northern Australia Infrastructure Incentive Facility.

Additional Estimates Statements — Department of the Treasury

19

Section 2: Revisions to outcomes and planned performance

2.1 OUTCOMES AND PERFORMANCE INFORMATION

OUTCOME 1

There has been no change to outcomes or the outcome strategy for the Treasury from that included in the Portfolio Budget Statements 2015-16 (pages 25-26).

There has been no significant change to the programme objective, expenses, deliverables or key performance indicators for programme 1.2 (payments to international financial institutions) and programmes 1.4 to 1.9 that affect Appropriation Bills Nos. 3 and 4.

Programmes 1.4 to 1.9 relate to Australia’s Federal Relations. Further details of Australia’s Federal Relations are on pages 76 to 85 of the Mid-Year Economic and Fiscal Outlook 2015-16.

Table 2.1: Budgeted expenses and resources for Outcome 1 Outcome 1: Informed decisions on the development and implementation of policies to improve the wellbeing of the Australian people, including by achieving strong, sustainable economic growth, through the provision of advice to government and the efficient administration of federal financial relations

2014-15 Actual expenses

$'000

2015-16 Revised estimated expenses

$'000

Programme 1.1: Department of the Treasury Administered expenses Ordinary annual services (Appropriation Act No. 1 and Bill No. 3) 28,382 3,230

Special appropriations 2,871 1,000

Expenses not requiring appropriation 100 -

Departmental expenses Departmental appropriation (a) 182,241 171,724

Special Accounts 1,840 1,803

Expenses not requiring appropriation in the Budget year (b) 9,969 8,217

Total for Programme 1.1 225,403 185,974

Program 1.3: Support for Markets Administered expenses Ordinary annual services (Appropriation Act No. 1 and Bill No. 3) 6,941 17,394

Total for Programme 1.3 6,941 17,394

2014-15 2015-16

Average Staffing Level (number) 820 839

(a) Departmental appropriation combines ‘Ordinary annual services (Appropriation Act No. 1 and Bill No. 3)’ and ‘Retained Revenue Receipts under s. 74 of the PGPA Act 2013’. (b) Expenses not requiring appropriation in the Budget year are made up of depreciation expenses, amortisation expenses and audit fees.

Additional Estimates Statements — Department of the Treasury

20

Programme Objective 1.1 - Department of the Treasury

There have been no significant changes to programme objective, deliverables or key performance indicators from that included in the Portfolio Budget Statements 2015-16.

Programme expenses have been updated to reflect new government measures taken and other changes to resourcing for the Treasury as outlined in Table 1.3 and Table 1.4.

Programme expenses 1.1

Table 2.2: 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

Departmental expenses Departmental items 184,081 173,527 166,608 166,654 167,872

Expenses not requiring appropriation (a) 9,969 8,217 5,858 5,903 5,934

Total departmental expenses 194,050 181,744 172,466 172,557 173,806

Administered expenses Annual Appropriations Community Engagement 27,982 - - - -

Foreign investment communications - 2,692 - - -

Other 400 538 - - -

Expenses not requiring appropriation 100 - - - -

PGPA s.77 - repayments 2,871 1,000 1,000 1,000 1,000

Total administered expenses 31,353 4,230 1,000 1,000 1,000

Total programme expenses 225,403 185,974 173,466 173,557 174,806

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

Programme Objective 1.3 - Support for markets and business

There has been no significant change to the programme objective, deliverables or key performance indicators from that included in the Portfolio Budget Statements 2015-16.

Programme expenses have been updated to reflect new government measures taken and other changes to resourcing for the Treasury as outlined in Table 1.3 and Table 1.4.

Additional Estimates Statements — Department of the Treasury

21

Programme expenses 1.3

Table 2.3: 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 administered expenses Annual Appropriations Centre for International Finance & Regulation 1,000 - - - -

Housing Loan Company Limited - payments in respect of insurance claims - 675 675 - -

Global Infrastructure Hub 3,400 7,700 6,800 6,800 3,400

Small Business Advisory Services 5,589 6,319 6,014 6,306 5,994

Small Business Support Line 639 1,300 - - -

Australian Small Business Advisory Service - 1,400 1,400 1,400 -

Other (a) (3,687) - - - -

Total programme expenses 6,941 17,394 14,889 14,506 9,394

(a) This relates to the winding down of the HIH Claims Support Scheme.

22

Additional Estimates Statements

— Department of the Treasury

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 Treasury. The corresponding table in the Portfolio Budget Statements 2015-16 is Table 3.1.2.

Table 3.1.1: Estimates of special account flows and balances Outcome Opening

balance $'000

Receipts

$'000

Payments

$'000

Adjustments

$'000

Closing balance $'000

COAG Reform Fund Special Account (A) 2015-161-12,722,782 (12,722,782)--

2014-15-11,521,643 (11,521,643)--

Actuarial Services Special Account (D)1

2015-162,632 1,803 (1,803)-2,632

2014-152,446 2,026 (1,840)-2,632

CEFC Special Account (A)(a) 2015-1612,919,000--(2,919,000)-

2014-15868,400 2,050,600--2,919,000

Services for Other Entities and Trust Monies Special Account (A) 2015-161-----

2014-15-1,996 (1,996)--

Total special accounts 2015-16 Budget Estimates2,921,632 12,724,585 (12,724,585) (2,919,000) 2,632

2014-15 Actual870,846 13,576,265 (11,525,479)-2,921,632

(a) Reflects the transfer of the CEFC special account to the Department of the Environment. (A) = Administered (D) = Departmental

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23

3.2 BUDGETED FINANCIAL STATEMENTS

3.2.1 Analysis of budgeted financial statements

The Treasury is budgeting for a break-even operating result, after non-appropriated expenses such as depreciation are removed, in 2015-16.

The Treasury has a sound financial position and has sufficient cash reserves to fund provisions, payables and asset replacement, as they fall due.

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 122,940 126,167 122,300 122,079 122,420

Suppliers 58,570 45,663 43,674 43,930 44,807

G

rants 2,571 2,247 1,184 1,195 1,195

Depreciation and amortisation 9,667 7,667 5,308 5,353 5,384

Write-down and impairment of assets 277 - - - -

Finance costs 25 - - - -

Total expenses 194,050 181,744 172,466 172,557 173,806

LESS: OWN-SOURCE INCOME Own-source revenue Sale of goods and rendering of services 10,308 9,268 9,504 9,504 9,504

Other revenue 1,287 1,200 1,200 1,200 950

Total own-source revenue 11,595 10,468 10,704 10,704 10,454

Gai

ns

Sale of assets 9 - - - -

Other 4,642 3,500 3,500 3,500 3,500

Total gains 4,651 3,500 3,500 3,500 3,500

Total own-source income 16,246 13,968 14,204 14,204 13,954

Net cost of (contribution by) services 177,804 167,776 158,262 158,353 159,852

Revenue from Government 172,767 160,109 152,954 153,000 154,468

Surplus/(deficit) attributable to the Australian Government (5,037) (7,667) (5,308) (5,353) (5,384)

OTHER COMPREHENSIVE INCOME Changes in asset revaluation surplus 976 - - - -

Total other comprehensive income 976 - - - -

Total comprehensive income/(loss) (4,061) (7,667) (5,308) (5,353) (5,384)

Prepared on Australian Accounting Standards basis.

Additional Estimates Statements — Department of the Treasury

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Table 3.2.1: Comprehensive income statement (showing net cost of services) for the period ended 30 June (continued) 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 (a) 5,606 - - - -

less depreciation/amortisation expenses previously funded through revenue appropriations (b) 9,667 7,667 5,308 5,353 5,384

Total comprehensive income/(loss) - as per the Statement of Comprehensive Income (4,061) (7,667) (5,308) (5,353) (5,384)

(a) Includes change in asset revaluation reserves of $1.0 million in 2014-15. (b) From 2010-11, the Government introduced net cash appropriation arrangements where Appropriation Act No. 1 or Bill No. 3 revenue appropriations for the depreciation/amortisation expenses of non-corporate Commonwealth entities were replaced with a separate capital budget (the Departmental

Capital Budget (DCB)) provided through Appropriation Act No. 1 or Bill No. 3 equity appropriations. For information regarding DCBs, please refer to Table 3.2.5 Departmental Capital Budget Statement.

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 5,152 5,152 5,152 5,152 5,152

Trade and other receivables 60,141 62,141 64,141 66,141 68,141

Total financial assets 65,293 67,293 69,293 71,293 73,293

No

n-financial assets Land and buildings 2,500 2,149 2,149 2,149 2,149

Property, plant and equipment 8,660 7,265 7,265 7,270 7,281

Intangibles 12,221 13,312 13,312 13,307 13,296

Other non-financial assets 3,365 3,365 3,365 3,365 3,365

Total non-financial assets 26,746 26,091 26,091 26,091 26,091

Total assets 92,039 93,384 95,384 97,384 99,384

LIABILITIES Payables Suppliers 1,289 1,289 1,289 1,289 1,289

Other payables 11,484 11,484 11,484 11,484 11,484

Total payables 12,773 12,773 12,773 12,773 12,773

Provisions Employee provisions 43,564 45,564 47,564 49,564 51,564

Other provisions 964 964 964 964 964

Total provisions 44,528 46,528 48,528 50,528 52,528

Total liabilities 57,301 59,301 61,301 63,301 65,301

Net assets 34,738 34,083 34,083 34,083 34,083

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

EQUITY (a) Parent entity interest Contributed equity 51,526 58,538 63,846 69,199 74,583

Reserves 6,163 6,163 6,163 6,163 6,163

Retained surplus/ (accumulated deficit) (22,951) (30,618) (35,926) (41,279) (46,663)

Total Equity 34,738 34,083 34,083 34,083 34,083

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

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 (22,951) 6,163 - 51,526 34,738

Adjusted opening balance (22,951) 6,163 - 51,526 34,738

Comprehensive income Surplus/(deficit) for the period (7,667) - - - (7,667)

Total comprehensive income (7,667) - - - (7,667)

Transactions with owners Contributions by owners Equity Injection - Appropriation - - - 1,700 1,700

Departmental Capital Budget (DCB) - - - 5,312 5,312

Sub-total transactions with owners - - - 7,012 7,012

Closing balance attributable to the Australian Government (30,618) 6,163 - 58,538 34,083

Prepared on Australian Accounting Standards basis.

Additional Estimates Statements — Department of the Treasury

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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 173,848 159,652 150,812 150,858 152,305

Sale of goods and rendering of services 11,348 9,268 9,504 9,504 9,504

Other 6,335 650 650 650 400

Total cash received 191,531 169,570 160,966 161,012 162,209

Cash used Employees 126,741 124,021 119,876 119,652 119,987

Suppliers 57,450 43,302 39,906 40,165 41,027

Grants 2,571 2,247 1,184 1,195 1,195

Other 15 - - - -

Total cash used 186,777 169,570 160,966 161,012 162,209

Net cash from/(used by) operating activities 4,754 - - - -

INVESTING ACTIVITIES Cash received Proceeds from sales of property, plant and equipment 21 - - - -

Total cash received 21 - - - -

Cash used Purchase of property, plant, equipment and intangibles 7,246 7,012 5,308 5,353 5,384

Total cash used 7,246 7,012 5,308 5,353 5,384

Net cash from/(used by) investing activities (7,225) (7,012) (5,308) (5,353) (5,384)

FINANCING ACTIVITIES Cash received Appropriations - equity injections 1,595 1,700 - - -

Appropriations - DCB 5,373 5,312 5,308 5,353 5,384

Total cash received 6,968 7,012 5,308 5,353 5,384

Net cash used by financing activities 6,968 7,012 5,308 5,353 5,384

Net increase/(decrease) in cash held 4,497 - - - -

Cash and cash equivalents at the beginning of the reporting period 655 5,152 5,152 5,152 5,152

Cash and cash equivalents at the end of the reporting period 5,152 5,152 5,152 5,152 5,152

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) 5,373 5,312 5,308 5,353 5,384

Equity injections - Act No. 2 - 1,700 - - -

Total new capital appropriations 5,373 7,012 5,308 5,353 5,384

Provided for: Purchase of non-financial assets 5,373 7,012 5,308 5,353 5,384

Total Items 5,373 7,012 5,308 5,353 5,384

PURCHASE OF NON-FINANCIAL ASSETS Funded by capital appropriations 1,595 1,700 - - -

Funded by capital appropriation - DCB 5,373 5,312 5,308 5,353 5,384

TOTAL AMOUNT SPENT 6,968 7,012 5,308 5,353 5,384

RECONCILIATION OF CASH USED TO ACQUIRE ASSETS TO ASSET MOVEMENT TABLE

Total purchases 6,968 7,012 5,308 5,353 5,384

TOTAL CASH REQUIRED TO ACQUIRE ASSETS 6,968 7,012 5,308 5,353 5,384

Prepared on Australian Accounting Standards basis.

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Table 3.2.6: Statement of 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 7,110 11,221 22,707 41,038

Accumulated depreciation/amortisation and impairment (4,610) (2,561) (10,486) (17,657)

Opening net book balance 2,500 8,660 12,221 23,381

Capital asset additions Estimated expenditure on new or replacement assets By purchase - appropriation equity - - 1,700 1,700

By purchase - appropriation ordinary annual services 1,365 1,514 2,433 5,312

Total additions 1,365 1,514 4,133 7,012

Other movements Depreciation/amortisation expense (1,716) (2,909) (3,042) (7,667)

Total other movements (1,716) (2,909) (3,042) (7,667)

As at 30 June 2016 Gross book value 8,475 12,735 26,840 48,050

Accumulated depreciation/amortisation and impairment (6,326) (5,470) (13,528) (25,324)

Closing net book balance 2,149 7,265 13,312 22,726

Prepared on Australian Accounting Standards basis.

Additional Estimates Statements — Department of the Treasury

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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 Grants 83,746,833 89,199,864 95,681,643 95,884,049 96,373,058

Interest 3,427 3,914 4,931 14,949 38,570

Suppliers 27,666 5,591 1,153 1,142 1,207

Foreign exchange - 518,321 - - -

Other expenses - 675 675 - -

Total expenses administered on behalf of Government 83,777,926 89,728,365 95,688,402 95,900,140 96,412,835 LESS: OWN-SOURCE INCOME Own-source revenue Non-taxation revenue

Sale of goods and rendering of services 726,299 747,234 724,867 702,020 690,550

Interest 3,166 4,251 8,065 12,556 19,116

Dividends 1,941,500 840,426 316,500 766,500 858,000

COAG revenue from government entities

993,379 328,323 2,856,949 2,458,246 2,023,467

Other revenue 154,189 4,371 4,500 4,600 4,700

Total non-taxation revenue 3,818,533 1,924,605 3,910,881 3,943,922 3,595,833

Total own-source revenue administered on behalf of Government 3,818,533 1,924,605 3,910,881 3,943,922 3,595,833

Gains Foreign exchange 36,629 - 26,744 45,321 33,370

Total gains administered on behalf of Government 36,629 - 26,744 45,321 33,370

Total own-source income administered on behalf of Government 3,855,162 1,924,605 3,937,625 3,989,243 3,629,203

Net cost of/(contribution by) services 79,922,764 87,803,760 91,750,777 91,910,897 92,783,632

Surplus/(Deficit) (79,922,764) (87,803,760) (91,750,777) (91,910,897) (92,783,632) OTHER COMPREHENSIVE INCOME Items not subject to subsequent reclassification to profit or loss

Changes in asset revaluation surplus 5,574,357

- - - -

Total other comprehensive income 5,574,357

- - - -

Total comprehensive income (loss) (74,348,407) (87,803,760) (91,750,777) (91,910,897) (92,783,632) Prepared on Australian Accounting Standards basis.

Additional Estimates Statements — Department of the Treasury

30

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 - - - - -

Advances and loans 810,822 954,862 985,765 959,392 822,115

Receivables 2,596,088 1,797,261 314,496 751,413 888,501

Investments 32,565,700 38,648,559 38,894,339 39,171,667 39,430,834

Total financial assets 35,972,610 41,400,682 40,194,600 40,882,472 41,141,450 Non-financial assets Other non-financial assets 410 - - - -

Total non-financial assets 410 - - - -

Total assets administered on behalf of Government 35,973,020 41,400,682 40,194,600 40,882,472 41,141,450

LIABILITIES Payables Grants 599,937 66,267 57,060 50,532 40,754

Other payables 5,642,592 5,650,229 5,669,473 5,705,483 5,730,232

Unearned income 77,019 55,008 37,968 24,611 12,698

Total payables 6,319,548 5,771,504 5,764,501 5,780,626 5,783,684

Interest bearing liabilities Loans 4,824,704 9,877,861 9,354,089 9,329,946 9,305,531

Total interest bearing liabilities 4,824,704 9,877,861 9,354,089 9,329,946 9,305,531

Provisions Provisions for grants 1,816,251 456,733 186,693 - -

Total provisions 1,816,251 456,733 186,693 - -

Total liabilities administered on behalf of Government 12,960,503 16,106,098 15,305,283 15,110,572 15,089,215

Net assets/(liabilities) 23,012,517 25,294,584 24,889,317 25,771,900 26,052,235 Prepared on Australian Accounting Standards basis.

Additional Estimates Statements — Department of the Treasury

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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 Sale of goods and

rendering of services 109,280 75,290 107,914 104,470 103,347

Interest 1,261 799 1,679 3,306 9,348

Dividends 675,255 1,616,963 1,782,208 316,500 709,000

COAG receipts from entites 16,628,197 15,963,622 19,899,717 20,629,756 2,023,465

Other 99,847 4,371 4,500 4,600 4,700

Total cash received 17,513,840 17,661,045 21,796,018 21,058,632 2,849,860

Cash used Grant payments 100,495,444 106,055,749 112,386,558 113,650,980 95,795,234 Interest paid 3,312 2,989 5,914 11,822 35,565

Other 29,325 6,266 1,828 1,142 1,207

Total cash used 100,528,081 106,065,004 112,394,300 113,663,944 95,832,006 Net cash from/(used by) operating activities (83,014,241) (88,403,959) (90,598,282) (92,605,312) (92,982,146)

INVESTING ACTIVITIES Cash received Advances and loans 360,317 61,879 28,176 52,188 149,681

Other investing activities 748,795 - - - -

Total cash received 1,109,112 61,879 28,176 52,188 149,681

Cash used Purchase of investments 27,295 2,140,890 725,185 226,423 227,998

Advances and loans 40,824 201,600 50,000 12,500 -

Total cash used 68,119 2,342,490 775,185 238,923 227,998

Net cash from/(used by) investing activities 1,040,993 (2,280,611) (747,009) (186,735) (78,317)

Net increase/ (decrease) in cash held (81,973,248) (90,684,570) (91,345,291) (92,792,047) (93,060,463)

Cash and cash equivalents at beginning of reporting period 1,412 - - - -

Cash from Official Public Account for:

- Appropriations 84,964,552 92,772,193 96,126,715 95,731,355 96,060,004

Cash to Official Public Account for:

- Appropriations (2,992,716) (2,087,623) (4,781,424) (2,939,308) (2,999,541) Cash and cash equivalents at end of reporting period

- - - - -

Prepared on Australian Accounting Standards basis.

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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 Special appropriations 68,082 2,304,990 725,125 226,423 227,998

Total new capital appropriations 68,082 2,304,990 725,125 226,423 227,998

Provided for: International financial institutions 68,082 2,304,990 725,125 226,423 227,998 Total Items 68,082 2,304,990 725,125 226,423 227,998

Prepared on Australian Accounting Standards basis.

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Notes to the financial statements Accounting policy

The Treasury’s budgeted financial statements have been prepared on an accrual accounting basis having regard to statements of accounting concepts, and in accordance with:

• the Government’s financial budgeting and reporting framework; and

• Australian Accounting Standards and Interpretations issued by the Australian Accounting Standards Board.

Departmental and administered items

Under the Government’s accrual budgeting framework, and consistent with Australian Accounting Standards, transactions that departments control (departmental transactions) are separately budgeted for, and reported on, from transactions departments do not have control over (administered transactions). This ensures that departments are only held accountable for the transactions over which they have control.

35

AUSTRALIAN COMPETITION AND CONSUMER COMMISSION Section 1: Entity overview and resources ................................................................ 37

1.1 Strategic direction statement .............................................................................. 37

1.2 Entity resource statement ................................................................................... 37

1.3 Entity measures .................................................................................................. 39

1.4 Additional estimates and variations .................................................................... 40

1.5 Breakdown of additional estimates by appropriation bill .................................... 41

Section 2: Revisions to outcomes and planned performance ............................... 42

2.1 Outcomes and performance information ............................................................ 42

Section 3: Explanatory tables and budgeted financial statements ....................... 44

3.1 Explanatory tables .............................................................................................. 44

3.2 Budgeted financial statements ........................................................................... 44

37

AUSTRALIAN COMPETITION AND CONSUMER COMMISSION

Section 1: Entity overview and resources

1.1 STRATEGIC DIRECTION STATEMENT

The Australian Competition and Consumer Commission (ACCC) is seeking an additional $2.5 million in departmental outputs through Appropriation Bill (No. 3) 2015-16 and $11.6 million in equity injections through Appropriation Bill (No. 4) 2015-16.

These relate to measures outlined in the Mid-Year Economic and Fiscal Outlook 2015-16 for the Agriculture New Policy Proposal Stronger Farmers, Stronger Economy — a fairer go for farm business, and the reappropriation of 2013-14 equity related to the ACCC’s Litigation Contingency Fund.

Accordingly, whilst there has been no significant change to the strategic direction of the ACCC from that outlined in the Portfolio Budget Statements 2015-16 (pages 89-91), an additional priority for 2015-16 is compliance with, and enforcement of, the Competition and Consumer Act 2010 in the agriculture sector.

1.2 ENTITY RESOURCE STATEMENT

The Entity Resource Statement details the resourcing for the ACCC 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 Nos. 3 and 4, Special Appropriations and Special Accounts.

Additional Estimates Statements — Australian Competition and Consumer Commission

38

Table 1.1: Australian Competition and Consumer Commission 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 (a) Departmental appropriation Prior year departmental appropriation (b) 12,833 21,582 - 21,582

Departmental appropriation (c) 169,459 164,815 2,524 167,339

s.74 Retained Revenue Receipts (d) 5,458 2,764 857 3,621

Total 187,750 189,161 3,381 192,542

Total ordinary annual services [A] 187,750 189,161 3,381 192,542

Other services (e) Departmental non-operating Prior year departmental appropriation (b) 12,592 14,296 - 14,296

Equity injections 2,700 1,300 11,596 12,896

Total 15,292 15,596 11,596 27,192

Total other services [B] 15,292 15,596 11,596 27,192

Total available annual appropriations 203,042 204,757 14,977 219,734

Special appropriations Special appropriations limited by criteria/entitlement Public Governance, Performance and

Accountability Act 2013 - s.77 (f) 12 20 11,000 11,020

Total special appropriations [C] 12 20 11,000 11,020

Total appropriations excluding Special Accounts 203,054 204,777 25,977 230,754

Total resourcing [A+B+C] 203,054 204,777 25,977 230,754

Total net resourcing for ACCC 203,054 204,777 25,977 230,754

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 on behalf of the National Competition Council (NCC) 1,740 1,740

(a) Appropriation Act (No. 1) 2015-16 and Appropriation Bill (No. 3) 2015-16. (b) Estimated adjusted balance carried from previous year for annual appropriations. (c) Includes an amount of $1.993m in 2015-16 for the Departmental Capital Budget (refer to table 3.2.5 for further details). For accounting purposes this amount has been designated as ‘contributions by owners’.

(d) Estimated retained revenue receipts under s.74 of the Public Governance, Performance and Accountability Act 2013 (PGPA Act). (e) Appropriation Act (No. 2) 2015-16 and Appropriation Bill (No. 4) 2015-16. (f) Repayments not provided for under other appropriations. Note: The ACCC provides financial services to the NCC and has drawdown access to manage the NCC's finances. Reader note: All figures are GST exclusive. These figures may not match figures in the cash flow statement.

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1.3 ENTITY MEASURES

Table 1.2 summarises new Government measures taken since the 2015-16 Budget. The table presents expense 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 -A fairer go for farm businesses Departmental expenses(a) 1.1 2,591 2,737 3,025 3,054

Public Sector Superannuation Accumulation Plan administration fees Departmental expenses(b) 1.1 (56) (56) (56) (56)

Departmental expenses(b) 1.2 (11) (11) (11) (11)

Public Sector Savings - Enterprise Resouce Planning Systems Departmental expenses(c) 1.1 - - (75) (91)

Departmental expenses(c) 1.2 - - (19) (23)

Total measures 2,524 2,670 2,864 2,873

Prepared on a Government Financial Statistics (fiscal) basis. (a) This measure was included in the Mid-Year Economic and Fiscal Outlook 2015-16, and forms part of the Commonwealth Government’s White Paper on Agricultural Competitiveness. (b) This measure was announced in the Mid-Year Economic and Fiscal Outlook 2014-15 as a cross

portfolio measure and has not previously appeared in a portfolio statement. (c) This measure was announced in the 2015-16 Budget as a cross-portfolio measure and has not previously appeared in a portfolio statement.

Additional Estimates Statements — Australian Competition and Consumer Commission

40

1.4 ADDITIONAL ESTIMATES AND VARIATIONS

The following tables detail the changes to the resourcing for the ACCC 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 as parameter adjustments.

Table 1.3: Additional estimates and variations to outcomes from measures since 2015-16 Budget Programme 2015-16 $'000

2016-17 $'000

2017-18 $'000

2018-19 $'000

Outcome 1 Increase in estimates (departmental) Stronger Farmers, Stronger Economy - A fairer go for farm

businesses Departmental expenses 1.1 2,591 2,737 3,025 3,054

Decrease in estimates (departmental) Public Sector Superannuation (a) Accumulation Plan administration fees

Departmental expenses 1.1 (56) (56) (56) (56)

Departmental expenses 1.2 (11) (11) (11) (11)

Public Sector Savings - Enterprise Resouce Planning Systems (b) Departmental expenses 1.1 - - (75) (91)

Departmental expenses 1.2 - - (19) (23)

Net impact on estimates for Outcome 1 (departmental) 2,524 2,670 2,864 2,873

(a) This measure was announced in the Mid-Year Economic and Fiscal Outlook 2014-15 as a cross portfolio measure and has not previously appeared in a portfolio statement. (b) This measure was announced in the 2015-16 Budget as a cross-portfolio measure and has not previously appeared in a portfolio statement. Prepared on a Government Financial Statistics (fiscal) basis.

Table 1.4: Additional estimates and variations to outcomes from other variations Programme 2015-16 $'000 2016-17

$'000

2017-18 $'000

2018-19 $'000

Outcome 1 Increase in estimates (departmental) Movement of Funds - Equity 1.1 11,596 - - -

Decrease in estimates (departmental) Adjustment to reflect movement in indicies relating to prices and wages

Departmental expenses 1.1 - - (130) (261)

Departmental expenses 1.2 - - (33) (66)

Departmental capital 1.1 - - (2) (4)

Net impact on estimates for Outcome 1 (departmental) 11,596 - (165) (331)

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1.5 BREAKDOWN OF ADDITIONAL ESTIMATES BY APPROPRIATION BILL

The following tables detail the Additional Estimates sought for the ACCC 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 - Lawful competition, consumer protection, and regulated national infrastructure markets and services through regulation, including enforcement, education, price monitoring and determining the terms of access to infrastructure services. 169,459 164,815 167,339 2,524 -

Total 169,459 164,815 167,339 2,524 -

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 2,700 1,300 12,896 11,596 -

Total 2,700 1,300 12,896 11,596 -

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Section 2: Revisions to outcomes and planned performance

2.1 OUTCOMES AND PERFORMANCE INFORMATION

The additional priority of compliance and enforcement of the Competition and Consumer Act 2010 (CCA) in the agriculture sector will be achieved through increased engagement with the agriculture sector, increased investigations of possible breaches of the CCA and, as appropriate, enforcement action and outcomes. Accordingly, there is no change to the ACCC’s outcome statement, objectives, outcome strategies and deliverables, and the performance information included in the Portfolio Budget Statements 2015-16 (pages 94-102) will require the ACCC to report on the additional work that the ACCC undertakes and the outcomes achieved.

Table 2.1 Budgeted expenses for Outcome 1 Outcome 1: Lawful competition, consumer protection, and regulated national infrastructure markets and services through regulation, including enforcement, education, price monitoring and determining the terms of access to infrastructure services.

2014-15 Actual expenses

$'000

2015-16 Revised estimated expenses

$'000

Programme 1.1: Australian Competition and Consumer Commission

Departmental expenses Departmental appropriation(a) 134,363 137,219

Expenses not requiring appropriation in the Budget year(b) 5,870 6,276

Total for Programme 1.1 140,233 143,495

Program 1.2: Australian Energy Regulator Departmental expenses Departmental appropriation(a) 36,299 33,567

Total for Programme 1.2 36,299 33,567

Outcome 1 Totals by appropriation type Departmental expenses Departmental appropriation(a) 170,662 170,786

Expenses not requiring appropriation in the Budget year(b) 5,870 6,276

Total expenses for Outcome 1 176,532 177,062

2014-15 2015-16

Average staffing level (number) 716 739

(a) Departmental Appropriation combines ‘Ordinary annual services (Appropriation Act No. 1 and Bill No. 3)’ and ‘Retained Revenue Receipts under s.74 of the PGPA Act 2013’. (b) Expenses not requiring appropriation in the Budget year is made up of depreciation expense, amortisation expense, makegood expense and audit fees.

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Programme objective 1.1: Australian Competition and Consumer Commission

Other than the additional priority focus in the agricultural sector, there is no change to programme objectives, deliverables or key performance indicators for the ACCC from that included in the Portfolio Budget Statements 2015-16.

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: Departmental items 134,363 137,219 134,278 133,811 134,572

Expenses not requiring appropriation in the Budget year(a) 5,870 6,276 6,379 5,659 5,075

Total programme expenses 140,233 143,495 140,657 139,470 139,647

(a) Expenses not requiring appropriation in the Budget year is made up of depreciation expense, amortisation expense, makegood expense and audit fees.

Programme objective 1.2: Australian Energy Regulator

There has been no change to programme objectives, deliverables or key performance indicators for the Australian Energy Regulator from that included in the Portfolio Budget Statements 2015-16.

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: Departmental items 36,299 33,567 33,009 33,184 33,374

Total programme expenses 36,299 33,567 33,009 33,184 33,374

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Section 3: Explanatory tables and budgeted financial statements

3.1 EXPLANATORY TABLES

Estimates of special account flows

There has been no change to the estimates of special account flows and balances from that included in the Portfolio Budget Statements 2015-16 (page 103).

3.2 BUDGETED FINANCIAL STATEMENTS

3.2.1 Analysis of budgeted financial statements

The ACCC is budgeting for a departmental breakeven operating result for 2015-16 after adjusting for non-appropriated expenses of depreciation and amortisation.

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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 97,372 101,110 97,700 96,542 96,512

Suppliers 72,470 69,708 69,600 70,461 71,428

Depreciation and amortisation 5,779 6,185 6,288 5,568 4,984

Finance costs 88 59 78 83 97

Write-down and impairment of assets 673 - - - -

Other expenses 150 - - - -

Total expenses 176,532 177,062 173,666 172,654 173,021

LESS: OWN-SOURCE INCOME Own-source revenue Sale of goods and rendering of services 1,189 4,437 1,250 1,250 1,250

Rental income - 1,003 1,003 1,003 1,003

Other revenue 1,432 - - - -

Total own-source revenue 2,621 5,440 2,253 2,253 2,253

Gains Other 91 91 91 91 91

Total gains 91 91 91 91 91

Total own-source income 2,712 5,531 2,344 2,344 2,344

Net cost of (contribution by) services 173,820 171,531 171,322 170,310 170,677

Revenue from Government 167,446 165,346 165,034 164,742 165,693

Surplus/(deficit) attributable to the Australian Government (6,374) (6,185) (6,288) (5,568) (4,984)

OTHER COMPREHENSIVE INCOME Changes in asset revaluation surplus 247 - - - -

Total other comprehensive income 247 - - - -

Total comprehensive income/(loss) (6,127) (6,185) (6,288) (5,568) (4,984)

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 (6,127) (6,185) (6,288) (5,568) (4,984)

less depreciation/amortisation expenses previously funded through revenue appropriations(a) Total comprehensive income/(loss) - as per the Statement of Comprehensive Income (6,127) (6,185) (6,288) (5,568) (4,984)

(a) From 2010-11, the Government introduced net cash appropriation arrangements where Appropriation Act No. 1 or Bill No. 3 revenue appropriations for the depreciation/amortisation expenses of non-corporate Commonwealth entities were replaced with a separate capital budget (the departmental capital budget, or DCB) provided through Appropriation Act No. 1 or Bill No. 3 equity appropriations. For information regarding DCBs, please refer to Table 3.2.5 Departmental capital budget statement. Prepared on Australian Accounting Standards basis.

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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 1,083 2,000 2,000 2,000 2,000

Trade and other receivables 36,576 30,600 31,225 23,301 22,434

Total financial assets 37,659 32,600 33,225 25,301 24,434

Non-financial assets Land and buildings 12,643 10,031 7,389 11,040 9,889

Property, plant and equipment 5,020 4,696 4,614 4,191 3,514

Intangibles 3,839 3,383 2,410 2,522 1,986

Inventories - - - - -

Other non-financial assets 1,039 999 997 1,010 1,024

Total non-financial assets 22,541 19,109 15,410 18,763 16,413

Total assets 60,200 51,709 48,635 44,064 40,847

LIABILITIES Payables Suppliers 8,644 8,377 8,455 8,650 8,860

Other payables 16,389 10,368 11,601 10,446 9,163

Total payables 25,033 18,745 20,056 19,096 18,023

Provisions Employee provisions 26,178 27,193 26,311 26,015 26,033

Other provisions 5,906 5,580 5,274 4,419 4,121

Total provisions 32,084 32,773 31,585 30,434 30,154

Liabilities included in disposal groups held for sale Total liabilities 57,117 51,518 51,641 49,530 48,177

Net assets 3,083 191 (3,006) (5,466) (7,330)

EQUITY* Parent entity interest Contributed equity 68,331 71,624 74,715 77,823 80,943

Reserves 3,967 3,967 3,967 3,967 3,967

Retained surplus/(accumulated deficit) (69,215) (75,400) (81,688) (87,256) (92,240) Total parent entity interest 3,083 191 (3,006) (5,466) (7,330)

Total equity 3,083 191 (3,006) (5,466) (7,330)

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

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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

Other reserves

$'000

Contributed equity/ capital $'000

Total equity

$'000

Opening balance as at 1 July 2015 Balance carried forward from previous period (69,215) 3,967 - 68,331 3,083

Adjustment for changes in accounting policies - - - - -

Adjusted opening balance (69,215) 3,967 - 68,331 3,083

Comprehensive income Other comprehensive income - - - - -

Surplus/(deficit) for the period (6,185) - - - (6,185)

Total comprehensive income (6,185) - - - (6,185)

of which:

Attributable to the Australian Government (6,185) - - - (6,185)

Transactions with owners Distributions to owners Returns of capital:

Other (11,596) (11,596)

Contributions by owners Equity Injection - Appropriation - - - 12,896 12,896

Departmental Capital Budget (DCB) - - - 1,993 1,993

Sub-total transactions with owners - - - 3,293 3,293

Transfers between equity components

-

Estimated closing balance as at 30 June 2016 (75,400) 3,967 - 71,624 191

Closing balance attributable to the Australian Government (75,400) 3,967 - 71,624 191

Prepared on Australian Accounting Standards basis.

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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 165,238 174,943 166,848 175,103 168,999

Sale of goods and rendering of services 1,621 3,621 2,438 2,438 2,438

Net GST received 6,456 6,857 6,934 7,652 7,120

Other 3,804 - - - -

Total cash received 177,119 185,421 176,220 185,193 178,557

Cash used Employees 94,685 103,353 98,207 96,849 96,494

Suppliers 77,515 78,030 76,075 80,106 80,125

s.74 Retained Revenue Receipts transferred to OPA 5,458 3,621 2,438 2,438 2,438

Other 150 - - - -

Total cash used 177,808 185,004 176,720 179,393 179,057

Net cash from/(used by) operating activities (689) 417 (500) 5,800 (500)

INVESTING ACTIVITIES Cash used Purchase of property, plant, equipment and intangibles 3,178 2,793 2,591 8,908 2,620

Total cash used 3,178 2,793 2,591 8,908 2,620

Net cash from/(used by) investing activities (3,178) (2,793) (2,591) (8,908) (2,620)

FINANCING ACTIVITIES Cash received Contributed equity 3,009 3,293 3,091 3,108 3,120

Total cash received 3,009 3,293 3,091 3,108 3,120

Net cash used by financing activities 3,009 3,293 3,091 3,108 3,120

Net increase/(decrease) in cash held (858) 917 - - -

Cash and cash equivalents at the beginning of the reporting period 1,941 1,083 2,000 2,000 2,000

Cash and cash equivalents at the end of the reporting period 1,083 2,000 2,000 2,000 2,000

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) 2,013 1,993 1,991 2,008 2,020

Equity injections - Act No. 2 2,700 12,896 1,100 1,100 1,100

Total new capital appropriations 4,713 14,889 3,091 3,108 3,120

Provided for: Purchase of non-financial assets 3,713 2,793 2,591 2,608 2,620

Other Items 1,000 12,096 500 500 500

Total items 4,713 14,889 3,091 3,108 3,120

PURCHASE OF NON-FINANCIAL ASSETS Funded by capital appropriations (a) 1,868 800 600 600 600

Funded by capital appropriation - DCB (b) 2,013 1,993 1,991 2,008 2,020

Funded internally from departmental resources (c) - - - 6,300 -

TOTAL AMOUNT SPENT 3,881 2,793 2,591 8,908 2,620

RECONCILIATION OF CASH USED TO ACQUIRE ASSETS TO ASSET MOVEMENT TABLE

Total purchases 3,178 2,793 2,591 8,908 2,620

TOTAL CASH REQUIRED TO ACQUIRE ASSETS 3,178 2,793 2,591 8,908 2,620

(a) Includes both current and prior Act 3 and Bills 4-6 appropriations and special capital appropriations. (b) Does not include annual finance lease costs. Includes purchases from current and previous years’ departmental capital budgets (DCBs). (c) Includes current and prior year Act (No. 1) and Bills 3/5 appropriations (excluding amounts from the

DCB).

Prepared on Australian Accounting Standards basis.

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Table 3.2.6: Statement of 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 12,643 5,020 12,851 30,514

Accumulated depreciation/amortisation and impairment - - (9,012) (9,012)

Opening net book balance 12,643 5,020 3,839 21,502

Capital asset additions Estimated expenditure on new or replacement assets By purchase - appropriation equity(a) 30 - 770 800

By purchase - appropriation ordinary annual services(b) - 1,392 601 1,993

Total additions 30 1,392 1,371 2,793

Other movements Depreciation/amortisation expense (2,642) (1,716) (1,827) (6,185)

Total other movements (2,642) (1,716) (1,827) (6,185)

As at 30 June 2016 Gross book value 12,673 6,412 14,222 33,307

Accumulated depreciation/amortisation and impairment (2,642) (1,716) (10,839) (15,197)

Closing net book balance 10,031 4,696 3,383 18,110

(a) ‘Appropriation equity’ refers to equity injections or Administered Assets and Liabilities appropriations provided through Appropriation Act (No.2) 2015-16 and Bill (No.4) 2015-16, including CDABs. (b) ‘Appropriation ordinary annual services’ refers to funding provided through Appropriation Act (No.1) 2015-16 and Bill (No.3) 2015-16 for depreciation/amortisation expenses, DCBs or other operational

expenses. Prepared on Australian Accounting Standards basis.

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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 Write-down and impairment of assets 2,262 - - - -

Other expenses 11,000 - - - -

Total expenses administered on behalf of Government 13,262 - - - -

LESS: OWN-SOURCE INCOME Own-source revenue Non-taxation revenue

Fees and fines 34,050 40,000 40,000 40,000 40,000

Other revenue - - - - -

Total non-taxation revenue 34,050 40,000 40,000 40,000 40,000

Total own-source revenue administered on behalf of Government 34,050 40,000 40,000 40,000 40,000

Total own-source income administered on behalf of Government 34,050 40,000 40,000 40,000 40,000

Net cost of/(contribution by) services (20,788) (40,000) (40,000) (40,000) (40,000) Prepared on Australian Accounting Standards basis.

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 - - - - -

Trade and other receivables 5,252 5,252 5,252 5,252 5,252

Total financial assets 5,252 5,252 5,252 5,252 5,252

Total assets administered on behalf of Government 5,252 5,252 5,252 5,252 5,252

LIABILITIES Payables Other payables 11,000 - - - -

Total payables 11,000 - - - -

Total liabilities administered on behalf of Government 11,000 - - - -

Net assets/(liabilities) (5,748) 5,252 5,252 5,252 5,252

Prepared on Australian Accounting Standards basis.

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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 Fees 32,581 40,000 40,000 40,000 40,000

Other 240 11,000 - - -

Total cash received 32,821 51,000 40,000 40,000 40,000

Cash used Other 32,830 51,000 40,000 40,000 40,000

Total cash used 32,830 51,000 40,000 40,000 40,000

Net cash from/(used by) operating activities (9) - - - -

Net increase/(decrease) in cash held (9) - - - -

Cash and cash equivalents at beginning of reporting period 9 - - - -

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

Prepared on Australian Accounting Standards basis.

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Notes to the financial statements

Accounting policy

The budgeted financial statements have been prepared on an accrual accounting basis having regard to statements of accounting concepts, and in accordance with:

• the Government’s financial budgeting and reporting framework; and

• Australian Accounting Standards and Interpretations issued by the Australian Accounting Standards Board.

Departmental and administered items

Entity assets, liabilities, revenues and expenses are those items that are controlled by the ACCC that are used by the ACCC in producing its programme and include:

• computers, plant and equipment and building fitout used in providing goods and services;

• liabilities for employee entitlements;

• revenue from appropriations or independent sources in payment for the departmental programme; and

• employee, supplier and depreciation expenses incurred in providing entity programme.

Administered items are those items incurred in providing programmes that are controlled by the Government and managed, or oversighted by the ACCC on behalf of the government. Administered revenues include fees and fines.

Departmental revenue

Revenue from government represents the purchase of outputs from the ACCC by the Government and is recognised to the extent that it has been received into the ACCC’s bank account.

Revenue from other sources, representing sales from goods and services, is recognised at the time that it is imposed on customers.

Departmental expenses — employees

Payments and net increases in entitlements to employees for services rendered in the financial year.

Departmental expenses — suppliers

Payments to suppliers for goods and services used in providing entity programmes.

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Departmental expenses — depreciation and amortisation

Depreciable property, plant and equipment, buildings and intangible assets are written-off to their estimated residual values over their estimated useful life, using the straight-line calculation method.

Departmental assets — financial assets

The primary financial asset relates to receivables. Financial assets are used to fund the ACCC’s capital programme, employee entitlements, creditors and to provide working capital.

Departmental assets — non-financial assets

These items represent future benefits that the ACCC will consume in producing outputs. The reported value represents the purchase paid less depreciation incurred to date in using the asset.

Departmental liabilities — provisions and payables

Provision has been made for the ACCC’s liability for:

• employee entitlements arising from services rendered by employees. The liability includes unpaid annual leave and long service leave;

• making good leased premises and lease incentives;

• onerous lease for the Nishi building in New Acton, Canberra; and

• unpaid expenses and unearned revenue as at balance date.

55

AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION Section 1: ASIC overview and resources ................................................................. 57

1.1 Strategic direction statement ............................................................................. 57

1.2 ASIC resource statement .................................................................................. 57

1.3 ASIC measures ................................................................................................. 59

1.4 Additional estimates and variations ................................................................... 60

1.5 Breakdown of additional estimates by appropriation bill ................................... 61

Section 2: Revisions to ASIC outcomes and planned performance ...................... 62

2.1 Outcomes and performance information ........................................................... 62

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

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

3.2 Budgeted financial statements .......................................................................... 65

57

AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION

Section 1: ASIC overview and resources

1.1 STRATEGIC DIRECTION STATEMENT

There has been no significant change to the strategic direction of the Australian Securities and Investments Commission (ASIC) from that outlined in the Treasury Portfolio Budget Statements 2015-16 (pages 163-164).

ASIC is seeking an additional net $1.5m in equity injection for the Enhanced Public Register of Financial Advisors — Establishment and an additional net $2.008m for the measure Growing jobs in small business - streamlining business registration through Appropriation Bill (No. 4) 2015-16. ASIC is also seeking an additional $0.663m for Corporations Act 2001 unclaimed monies interest through Appropriation Bill (No. 3) 2015-16. Details of these measures appear in the Mid-Year Economic and Fiscal Outlook 2015-16.

1.2 ASIC RESOURCE STATEMENT

The ASIC Resource Statement details the resourcing for ASIC 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 Nos. 3 and 4, Special Appropriations and Special Accounts.

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Table 1.1: ASIC 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(a) Departmental appropriation Prior year departmental appropriation(b) - 91,049 - 91,049

Departmental appropriation(c) 340,058 330,761 - 330,761

s.74 Retained Revenue Receipts(d) 6,109 2,147 - 2,147

Total 346,167 423,957 - 423,957

Administered expenses Outcome 1 - Assetless Administration fund 3,571 3,580 - 3,580

Outcome 1 - Ordinary annual services 3,072 2,515 - 2,515

Outcome 1 - Corporations Unclaimed Money interest - 699 633 1,332

Total 6,643 6,794 633 7,427

Total ordinary annual services [A] 352,810 430,751 633 431,384

Administered expenses Departmental non-operating Equity injections 9,365 1,793 3,508 5,301

Total 9,365 1,793 3,508 5,301

Total other services [B] 9,365 1,793 3,508 5,301

Total available annual appropriations 362,175 432,544 4,141 436,685

Special appropriations Special appropriations limited by amount Banking Act 1959 117,093 65,670 10,057 75,727

Life Insurance Act 1995 10,342 6,438 2,249 8,687

Public Governance, Performance and Accountability Act 2013 30,028 37,948 (7,132) 30,816

Total special appropriations [C] 157,463 110,056 5,174 115,230

Total appropriations excluding Special Accounts 519,638 542,600 9,315 551,915

Special Accounts Opening balance(e) - 64,029 - 64,029

Appropriation Receipts(f) 27,000 26,920 - 26,920

Non-appropriation receipts to Special Accounts 1,000 1,000 - 1,000

Total Special Account [D] 28,000 91,949 - 91,949

Total resourcing [A+B+C+D] 547,638 634,549 9,315 643,864

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

and/or payments to corporate entities through annual or special appropriations (27,000) (26,920) - (26,920)

Total net resourcing for ASIC 520,638 607,629 9,315 616,944

(a) Appropriation Act (No. 1) 2015-16 and Appropriation Bill (No. 3) 2015-16. (b) Estimated adjusted balance carried from previous year for annual appropriations. (c) Includes an amount of $19.131m in 2015-16 for the departmental capital budget (refer to table 3.2.5 for further details). For accounting purposes this amount has been designated as ‘contributions by owners’.

(d) Estimated retained revenue receipts under s.74 of the Public Governance, Performance and Accountability Act 2013 (PGPA Act). (e) Estimated opening balance for special accounts (less ‘Special Public Money’ held in a Services for Other Entities and Trust Moneys Special Accounts (SOETM)). For further information on Special

Accounts see Table 3.1.1. (f) Appropriation receipts from other entities credited to ASIC Special Accounts. Reader note: All figures are GST exclusive.

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1.3 ASIC MEASURES

Table 1.2 summarises new Government measures taken since the 2015-16 Budget. The table presents expense measures, with the affected programme identified.

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

$'000

2017-18 $'000 2018-19 $'000

Expense measures (if applicable) Public Sector Superannuation Accumulation Plan administration fees (a) 1.1

Departmental expenses (181) (181) (181) (181)

Total (181) (181) (181) (181)

Public Sector Savings — Enterprise Resource Planning System (b) 1.1

Departmental expenses - - (187) (228)

Total - - (187) (228)

Total expense measures Departmental (181) (181) (368) (409)

Total (181) (181) (368) (409)

(a) This measure was announced in the Mid-Year Economic and Fiscal Outlook 2014-15 as a cross portfolio measure and has not previously appeared in a portfolio statement. (b) This measure was announced in Budget 2015-16 as a cross-portfolio measure and has not previously appeared in a portfolio statement. Prepared on a Government Financial Statistics (fiscal) basis

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1.4 ADDITIONAL ESTIMATES AND VARIATIONS

The following tables detail the changes to the resourcing for ASIC 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 2015-16 $'000

2016-17 $'000

2017-18 $'000

2018-19 $'000

Outcome 1 Decrease in estimates (departmental) Public Sector Superannuation Accumulation Plan administration

fees (a) 1.1 (181) (181) (181) (181)

Public Sector Savings — Enterprise Resource Planning System (b) 1.1 - - (187) (228)

Net impact on estimates for Outcome 1 (departmental) (181) (181) (368) (409)

(a) This measure was announced in the Mid-Year Economic and Fiscal Outlook 2014-15 as a cross portfolio measure and has not previously appeared in a portfolio statement. (b) This measure was announced in Budget 2015-16 as a cross-portfolio measure and has not previously appeared in a portfolio statement.

Table 1.4: Additional estimates and variations to outcomes from other variations Programme 2015-16 $'000 2016-17

$'000

2017-18 $'000

2018-19 $'000

Outcome 1 Increase in estimates (administered) Revise Corps Act unclaimed money interest estimates 1.1

633 - - -

Net impact on estimates for Outcome 1 (administered) 633 - - -

Increase in estimates (departmental) Growing Jobs and Small Business — streamlining business registration 1.1 1,500 - - -

Enhanced Public Register of Financial Advisers — establishment 1.1 2,008 550 - -

Net impact on estimates for Outcome 1 (departmental) 3,508 550 - -

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1.5 BREAKDOWN OF ADDITIONAL ESTIMATES BY APPROPRIATION BILL

The following tables detail the Additional Estimates sought for ASIC 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: Improve confidence in Australia's financial markets through promoting informed investors and financial consumers, facilitating fair and efficient markets and delivering efficient registry systems. 7,891 6,794 7,427 633 -

Total administered 7,891 6,794 7,427 633 -

Total administered and departmental 7,891 6,794 7,427 633 -

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 11,978 1,793 5,301 3,508 -

Total other services 11,978 1,793 5,301 3,508 -

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Section 2: Revisions to ASIC outcomes and planned performance

2.1 OUTCOMES AND PERFORMANCE INFORMATION

There has been no change to outcomes or the outcome strategy for ASIC from that included in the Portfolio Budget Statements 2015-16 (page 168).

Table 2.1 Budgeted expenses for Outcome 1 Outcome 1: Improve confidence in Australia's financial markets through promoting informed investors and financial consumers, facilitating fair and efficient markets and delivering efficient registry systems.

2014-15 Actual expenses

$'000

2015-16 Revised estimated expenses

$'000

Programme 1.1: Australian Securities and Investments Commission Administered expenses Ordinary annual services (Appropriation Act No. 1 and Bill No. 3) 5,318 6,095

Expenses not requiring appropriation in the budget year 45,343 46,921

Departmental expenses Departmental appropriation(a) 312,918 311,530

Expenses not requiring appropriation in the Budget year(b) 28,254 27,250

Total for Programme 1.1 391,833 391,796

Program 1.2: Banking Act 1959, Life Insurance Act 1995 , unclaimed monies and special accounts Administered expenses

Companies unclaimed monies - s. 77 of the PGPA Act 18,159 28,835

Ordinary annual services (Appropriation Act No. 1 and Bill No. 3) 938 1,332

Other services (Appropriation Act No. 2 and Bill No. 4) Special appropriations Banking Act 1959 - Banking Unclaimed Moneys 112,687 5,607

Life Insurance Act 1995 - Life Unclaimed Moneys 8,460 612

Total for Programme 1.2 140,244 36,386

Outcome 1 Totals by appropriation type Administered Expenses Ordinary annual services (Appropriation Act No. 1 and Bill No. 3) 6,256 7,427

Expenses not requiring appropriation in the budget year 45,343 46,921

Special appropriations 121,147 6,219

Companies unclaimed monies - s. 77 of the PGPA Act 18,159 28,835

Departmental expenses Departmental appropriation(a) 312,918 311,530

Expenses not requiring appropriation in the Budget year(b) 28,254 27,250

Total expenses for Outcome 1 532,077 428,182

2014-15 2015-16

Average staffing level (number) 1,573 1,569

(a) Departmental Appropriation combines ‘Ordinary annual services (Appropriation Act No. 1 and Bill No. 3)’. (b) Expenses not requiring appropriation in the Budget year is made up of depreciation expense, amortisation expense, makegood expense and audit fees.

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Programme Objective 1.1 Australian Securities and Investments Commission

There has been no change to the programme objective, deliverables or key performance indicators from that included in the Portfolio Budget Statements 2015-16.

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 administered expenses: Administered item 5,318 6,095 4,176 4,242 4,273

Expenses not requiring appropriation 45,343 46,921 47,495 45,377 48,667

Annual departmental expenses: Departmental item 312,918 311,530 307,599 308,414 310,399

Expenses not requiring appropriation in the Budget year(a) 28,254 27,250 34,967 28,664 18,727

Total programme expenses 391,833 391,796 394,237 386,697 382,066

(a) Expenses not requiring appropriation in the Budget year is made up of depreciation expense and amortisation expense.

Programme Objective 1.2 Banking Act 1959, Life Insurance Act 1995, unclaimed monies and special accounts

There has been no change to the programme objective, deliverables or key performance indicators from that included in the Portfolio Budget Statements 2015-16.

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 administered expenses: Special Appropriations: Special Appropriations: 121,147 6,219 8,740 3,802 3,249

Ordinary annual services 938 1,332 5,736 5,736 5,816

s. 77 of the PGPA Act 18,159 28,835 29,346 29,838 30,526

Total programme expenses 140,244 36,386 43,822 39,376 39,591

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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 ASIC. The corresponding table in the 2015-16 Portfolio Budget Statements is Table 3.1.2.

Table 3.1.1: Estimates of special account flows and balances Outcome Opening balance $'000

Receipts

$'000

Payments

$'000

Adjustments

$'000

Closing balance $'000

ASIC Deregistered Companies (D) 2015-16 1 1,902 1,000 (1,000) - 1,902

2014-15 1,546 397 (41) - 1,902

ASIC Investigations, Legal Proceedings, Settlements and Court Orders Special Account (D) 2015-16 1 11 - - - 11

2014-15 11 - - - 11

ASIC Security Deposits Special Account (D) 2015-16 1 454 - - - 454

2014-15 445 9 - - 454

Enforcement Special Account (D) 2015-16 1 62,127 - 26,920 - 89,047

2014-15 51,900 428 27,000 (17,201) 62,127

Total special accounts 2015-16 Budget estimate 64,494 1,000 25,920 - 91,414

2014-15 actual 53,902 834 26,959 (17,201) 64,494

(A) = Administered (D) = Departmental

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3.2 BUDGETED FINANCIAL STATEMENTS

3.2.1 Analysis of budgeted financial statements

ASIC is currently budgeting for a breakeven operating result for 2015-16 and for the remainder of the forward estimates.

Comprehensive income statement (showing net cost of services) for the period ended 30 June

Total revenue and expenses (excluding depreciation) are estimated to be $314.9 million for 2015-16. The expenditure will be used to fund activities that contribute towards achieving the outcome and programme objectives outlined in Section 2.

Budgeted departmental balance sheet (as at 30 June)

This statement shows the financial position of ASIC. It helps decision makers to track the management of ASIC’s assets and liabilities.

ASIC’s budgeted equity (or net asset position) for 2015-16 is $91.7 million.

The 2015-16 equity position reflects the cumulative effect of capital injections of $5.3 million received during 2015-16.

Departmental statement of changes in equity — summary of movement (Budget year 2015-16)

This statement shows the changes in the equity position of ASIC. It helps decision-makers to track the management of ASIC’s equity.

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

The budgeted statement of cash flows provides important information on the extent and nature of cash flows by categorising them into expected cash flows from operating activities, investing activities and financing activities.

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

This statement shows details of capital appropriations received by ASIC. It helps decision-makers to track the acquisition of new non-financial assets.

Statement of asset movements — Departmental (2015-16 Budget year)

This statement shows details of gross asset movements during the year. It helps decision-makers to analyse movements of non-financial assets.

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

The schedule of budgeted income and expenses administered on behalf of government shows the revenue and expenses associated with the collection of revenue under the Corporations Act 2001 (Corporations Act) and ASIC’s responsibilities in administering unclaimed monies under the Banking Act 1959 (Banking Act), the Life Insurance Act 1995 (Life Insurance Act) and s.77 of the Public Governance, Performance and Accountability Act 2013 (PGPA Act).

Other non-taxation revenue represents the amount of fees and charges budgeted to be levied under the Corporations Act 2001 and estimated receipts of unclaimed monies under the Banking Act, the Life Insurance Act and the Corporations Act.

Expenses represent budgeted payments of unclaimed monies, refund of overpaid fees and charges levied under the Corporations Act, bad debt expense, administered advertising expenses and grant payments to registered insolvency practitioners to investigate breaches of directors’ duties and fraudulent conduct.

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

The amount shown for receivables in 2015-16 and in the forward estimates is the estimated amount of fees and charges under the Corporations Act remaining unpaid at 30 June.

The amounts shown in other payables for 2015-16 and the forward estimates represent the estimated amount of refunds relating to the overpayments of annual review and other fees under the Corporations Act, estimated claims payable under the Banking Act and the Life Insurance Act and companies unclaimed monies under s.77 of the PGPA Act.

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

Budgeted administered cash flows provide important information on the extent and nature of cash flows by categorising them into expected cash flows from operating activities, investing activities and financing activities.

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3.2.2 Budgeted financial statements

Departmental financial statements

Table 3.2.1: Departmental comprehensive income statement (showing net cost of services) 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 213,071 212,187 213,776 214,211 215,986

Suppliers 100,239 98,843 93,323 93,703 93,909

Depreciation and amortisation 41,373 40,148 34,967 28,664 18,727

Finance costs (568) 500 500 500 504

Write-down and impairment of assets 176 - - - -

Total expenses 354,291 351,678 342,566 337,078 329,126

LESS: OWN-SOURCE INCOME Own-source revenue Sale of goods and rendering of services 1,609 2,208 3,657 3,698 3,662

Other revenue 2,881 865 865 865 865

Total own-source revenue 4,490 3,073 4,522 4,563 4,527

Gains Sale of assets Other 353 330 330 330 330

Total gains 353 330 330 330 330

Total own-source income 4,843 3,403 4,852 4,893 4,857

Net cost of (contribution by) services 349,448 348,275 337,714 332,185 324,269

Revenue from Government 311,942 311,480 306,100 306,874 308,895

Surplus/(deficit) attributable to the Australian Government (37,506) (36,795) (31,614) (25,311) (15,374)

OTHER COMPREHENSIVE INCOME Total other comprehensive income - - - - -

Total comprehensive income/(loss) (37,506) (36,795) (31,614) (25,311) (15,374) Prepared on Australian Accounting Standards basis

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Table 3.2.1: Departmental comprehensive income statement (showing net cost of services) (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 3,867 3,353 3,353 3,353 3,353

less depreciation/amortisation expenses previously funded through revenue appropriations (a) 41,373 40,148 34,967 28,664 18,727

Total comprehensive income/(loss) -as per the Statement of Comprehensive Income (37,506) (36,795) (31,614) (25,311) (15,374)

(a) From 2010-11, the Government introduced net cash appropriation arrangements where Appropriation Act No. 1 or Bill No. 3 revenue appropriations for the depreciation/amortisation expenses of non-corporate Commonwealth entities were replaced with a separate capital budget (the departmental capital budget, or DCB) provided through Appropriation Act No. 1 or Bill No. 3 equity appropriations. For information regarding DCBs, please refer to Table 3.2.5 Departmental capital budget statement.

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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 9,232 9,232 9,232 9,232 9,232

Trade and other receivables 94,885 99,214 96,697 93,955 93,955

Total financial assets 104,117 108,446 105,929 103,187 103,187

Non-financial assets Land and buildings 36,207 30,502 29,661 37,704 45,151

Property, plant and equipment 22,855 19,346 17,138 16,544 17,884

Intangibles 92,780 84,253 80,905 67,258 63,737

Other non-financial assets 9,931 10,032 10,032 10,032 10,032

Total non-financial assets 161,773 144,133 137,736 131,538 136,804

Assets held for sale Total assets 265,890 252,579 243,665 234,725 239,991

LIABILITIES Payables Suppliers 24,869 25,393 25,393 25,393 25,393

Other payables 43,381 39,400 34,382 28,287 24,934

Total payables 68,250 64,793 59,775 53,680 50,327

Provisions Employee provisions 77,690 80,369 80,369 80,369 80,369

Other provisions 15,855 15,685 15,832 13,943 13,439

Total provisions 93,545 96,054 96,201 94,312 93,808

Liabilities included in disposal groups held for sale Total liabilities 161,795 160,847 155,976 147,992 144,135

Net assets 104,095 91,732 87,689 86,733 95,856

EQUITY* Parent entity interest Contributed equity 289,874 314,306 341,877 366,232 390,729

Reserves 6,365 6,365 6,365 6,365 6,365

Retained surplus/(accumulated deficit) (192,144) (228,939) (260,553) (285,864) (301,238) Total parent entity interest 104,095 91,732 87,689 86,733 95,856

Total Equity 104,095 91,732 87,689 86,733 95,856

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

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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

Other reserves

$'000

Contributed equity/ capital $'000

Total equity

$'000

Opening balance as at 1 July 2015 Balance carried forward from previous period (192,144) 6,365 289,874 104,095

Adjusted opening balance (192,144) 6,365 - 289,874 104,095

Comprehensive income Other comprehensive income -

Surplus/(deficit) for the period (36,795) (36,795)

Total comprehensive income (36,795) - - - (36,795)

Transactions with owners Contributions by owners Equity Injection -

Equity Injection - Appropriation 5,301 5,301

Departmental Capital Budget (DCB) 19,131 19,131

Other -

Restructuring -

Sub-total transactions with owners - - - 24,432 24,432

Transfers between equity components

-

Estimated closing balance as at 30 June 2016 (228,939) 6,365 - 314,306 91,732

Closing balance attributable to the Australian Government (228,939) 6,365 - 314,306 91,732

Prepared on Australian Accounting Standards basis.

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Table 3.2.4: Budgeted departmental statement of cash flows (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

OPERATING ACTIVITIES Cash received Appropriations 324,215 310,027 308,617 309,616 308,895

Sale of goods and rendering of services 3,322 2,208 3,657 3,698 3,662

Net GST received 13,062 12,501 12,188 13,972 12,577

Other 2,787 865 865 865 865

Total cash received 343,386 325,601 325,327 328,151 325,999

Cash used Employees 215,403 209,508 213,776 214,211 215,986

Suppliers 117,030 102,145 98,084 99,541 94,587

Borrowing costs - 12,500 12,188 13,972 12,577

Other 6,109 597 280 2,316 3,353

Total cash used 338,542 324,750 324,328 330,040 326,503

Net cash from/(used by) operating activities 4,844 851 999 (1,889) (504)

INVESTING ACTIVITIES Cash used Purchase of property, plant, equipment and intangibles

36,435 22,407 28,570 22,466 23,993

Total cash used 36,435 22,407 28,570 22,466 23,993

Net cash from/(used by) investing activities (36,435) (22,407) (28,570) (22,466) (23,993) FINANCING ACTIVITIES Cash received

Contributed equity 25,694 21,556 27,571 24,355 24,497

Total cash received 25,694 21,556 27,571 24,355 24,497

Net cash used by financing activities 25,694 21,556 27,571 24,355 24,497

Net increase/(decrease) in cash held (5,897) - - - -

Cash and cash equivalents at the beginning of the reporting period 15,129 9,232 9,232 9,232 9,232

Cash and cash equivalents at the end of the reporting period 9,232 9,232 9,232 9,232 9,232

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) 15,215 19,131 24,142 24,355 24,497

Equity injections - Act No. 2 11,978 5,301 3,429 - -

Total new capital appropriations 27,193 24,432 27,571 24,355 24,497

Provided for: Purchase of non-financial assets 26,943 23,762 27,218 22,466 23,993

Annual finance lease costs 250 670 353 1,889 504

Other Items Total Items 27,193 24,432 27,571 24,355 24,497

PURCHASE OF NON-FINANCIAL ASSETS

Funded by capital appropriations(a) 12,966 3,946 4,781 - -

Funded by capital appropriation - DCB(b) 14,965 18,461 23,789 22,466 23,993

TOTAL AMOUNT SPENT 27,931 22,407 28,570 22,466 23,993

RECONCILIATION OF CASH USED TO ACQUIRE ASSETS TO ASSET MOVEMENT TABLE

Total purchases 27,931 22,407 28,570 22,466 23,993

less additions by creditors / borrowings plus borrowing/finance costs TOTAL CASH REQUIRED TO ACQUIRE ASSETS 27,931 22,407 28,570 22,466 23,993

Consistent with information contained in the Statement of Asset Movements and the Budgeted Statement of Cash Flows. (b) Includes both current and prior Act 2 and Bills 4-6 appropriations and special capital appropriations (c) Does not include annual finance lease costs. Includes purchase from current and previous years’

departmental capital budgets (DCBs).

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Table 3.2.6: Statement of 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 73,213 58,038 270,127 401,378

Accumulated depreciation/amortisation and impairment (37,006) (35,183) (177,347) (249,536)

Opening net book balance 36,207 22,855 92,780 151,842

Capital asset additions Estimated expenditure on new or replacement assets By purchase - appropriation equity(a) 924 2,760 18,723 22,407

Total additions 924 2,760 18,723 22,407

Other movements Depreciation/amortisation expense (6,629) (6,269) (27,250) (40,148)

Total other movements (6,629) (6,269) (27,250) (40,148)

As at 30 June 2016 Gross book value 74,137 60,798 288,850 423,785

Accumulated depreciation/amortisation and impairment (43,635) (41,452) (204,597) (289,684)

Closing net book balance 30,502 19,346 84,253 134,101

(a) ‘Appropriation equity’ refers to equity injections or Administered Assets and Liabilities appropriations provided through Appropriation Act (No. 2) and Bill (No. 4) 2015-16, including CDABs. Prepared on Australian Accounting Standards basis.

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Schedule of administered activity

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 Suppliers 2,250 2,515 578 586 590

Grants 3,068 3,580 3,598 3,656 3,678

Interest expense 3,925 4,361 3,498 3,325 3,171

Write-down and impairment of assets 45,343 46,921 47,495 45,377 48,667

Other expenses 136,319 32,025 31,812 31,809 32,152

Total expenses administered on behalf of Government 190,905 89,402 86,981 84,753 88,258

LESS: OWN-SOURCE INCOME Own-source revenue Taxation revenue

Fees and fines 823,579 867,702 897,033 923,017 951,377

Total taxation revenue 823,579 867,702 897,033 923,017 951,377

Non-taxation revenue Sale of goods and rendering of services 209,371 42,421 43,016 44,091 45,193

Total non-taxation revenue 209,371 42,421 43,016 44,091 45,193

Total own-source revenue administered on behalf of Government 1,032,950 910,123 940,049 967,108 996,570 Total own-source income administered on behalf of Government

1,032,950 910,123 940,049 967,108 996,570

Net cost of/(contribution by) services (842,045) (820,721) (853,068) (882,355) (908,312) Surplus/(deficit) 842,045 820,721 853,068 882,355 908,312

Total comprehensive income (loss) 842,045 820,721 853,068 882,355 908,312

Prepared on Australian Accounting Standards basis.

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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 2,157 2,464 2,464 2,464 2,464

Taxation receivables 76 76 76 76 76

Trade and other receivables 123,840 141,583 148,940 155,098 156,526

Total financial assets 126,073 144,123 151,480 157,638 159,066

Total assets administered on behalf of Government 126,073 144,123 151,480 157,638 159,066

LIABILITIES Payables Suppliers 19,921 19,921 19,921 19,921 19,921

Other payables 417,688 337,819 306,021 284,998 270,809

Total payables 437,609 357,740 325,942 304,919 290,730

Total liabilities administered on behalf of Government 437,609 357,740 325,942 304,919 290,730

Net assets/(liabilities) (311,536) (213,617) (174,462) (147,281) (131,664)

Prepared on Australian Accounting Standards basis.

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 Sale of goods and rendering of services 976,011 845,457 885,197 915,574 948,515 Net GST received 589 328 331 331 -

Total cash received 976,600 845,785 885,528 915,905 948,515

Cash used Grants 2,902 3,580 3,598 3,656 3,714

Suppliers - 2,515 578 586 590

Net GST paid - 328 331 331 -

Other 161,776 116,255 67,108 56,157 49,512

Total cash used 164,678 122,678 71,615 60,730 53,816

Net cash from/(used by) operating activities 811,922 723,107 813,913 855,175 894,699

Net increase/(decrease) in cash held 811,922 723,107 813,913 855,175 894,699

Cash and cash equivalents at beginning of reporting period 3,876 2,157 2,464 2,464 2,464

Cash from Official Public Account for: - Appropriations 172,508 132,657 81,284 70,399 63,816

Cash to Official Public Account for: - Appropriations (986,149) (855,457) (895,197) (925,574) (958,515)

Cash and cash equivalents at end of reporting period 2,157 2,464 2,464 2,464 2,464

Prepared on Australian Accounting Standards basis.

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Notes to the Financial Statements

Basis of accounting

The budgeted financial statements have been prepared on an Australian Accounting Standards basis.

Budgeted entity financial statements

Under the Australian Government’s accrual budgeting framework, and consistent with Australian Accounting Standards, transactions that agencies control (departmental transactions) are separately budgeted for and reported on from transactions that agencies do not have control over (administered transactions). This ensures that agencies are only held fully accountable for the transactions over which they have control.

Departmental items are those assets, liabilities, revenues and expenses in relation to an entity or authority that are controlled by the entity. Departmental expenses include employee and supplier expenses and other administrative costs which are incurred by the entity in providing its goods and services.

Administered items are revenues, expenses, assets and liabilities that are managed by an entity or authority on behalf of the Australian Government according to set government directions. Administered expenses and administered revenues include fees, fines and expenses that have been earmarked for a specific purpose by the Australian Government.

Appropriations in the accrual budgeting framework

Under the Australian Government’s accrual budgeting framework, separate annual appropriations are provided for:

• departmental appropriations representing the Australian Government’s purchase of programmes from agencies;

• departmental capital appropriations for investments by the Australian Government for either additional equity or loans in agencies;

• administered expense appropriations for the estimated administered expenses relating to an existing outcome or a new outcome; and

• administered capital appropriations for increases in administered equity through funding non-expense administered payments.

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Departmental

Asset valuation

ASIC has adopted fair value as a basis for valuing its leasehold improvements and plant and equipment. Valuation is conducted with sufficient frequency to ensure that the carrying amounts of assets do not differ materially from the assets’ fair values as at the reporting date.

Asset recognition threshold

Purchases of property, plant and equipment are recognised initially at cost in the balance sheet, except for purchases costing less than $2,000, which are expensed in the year of acquisition.

Leases

A distinction is made between finance leases, which effectively transfer from the lessor to the lessee substantially all the risks and benefits incidental to ownership of leased non-current assets, and operating leases, under which the lessor effectively retains substantially all such risks and benefits.

Where a non-current asset is acquired by means of a finance lease, the asset is capitalised at the lower of fair value or the present value of minimum lease payments at the inception of the lease and a liability recognised for the same amount. Leased assets are amortised over the period of the lease. Lease payments are allocated between the principal component and the interest expense.

Operating lease payments are charged to the comprehensive income statement on a basis that is representative of the pattern of benefits derived from the lease assets.

Depreciation and amortisation

Computer equipment and plant and equipment is depreciated using the straight-line method. Leasehold improvements are amortised on a straight-line basis over the lesser of the estimated life of the improvements or the unexpired period of the lease.

Depreciation/amortisation rates (useful lives) are reviewed at each balance date and necessary adjustments are recognised receivables.

Receivables

A provision is raised for any doubtful debts based on a review of the collectability of all outstanding accounts as at year-end.

Bad debts are written-off during the year in which they are identified.

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Provisions and payables

Provisions and payables represent liabilities for miscellaneous accruals and employee benefits, including accrued salary and leave entitlements, provisions for making good leased premises and lease incentives. No provision for sick leave is required as all sick leave is non-vesting.

Administered

Schedule of budgeted revenues and expenses administered on behalf of government

Revenues

Non-taxation revenues are predominately comprised of Corporations Act fees and charges, and collections of unclaimed monies under the Banking Act, the Life Insurance Act and the Corporations Act.

Write-down and impairment of assets

Write-down and impairment of assets represents waivers and write-offs of corporations law fees.

Schedule of budgeted assets and liabilities administered on behalf of government

Financial assets

The financial assets include Corporations Act debt invoiced and still outstanding at year-end.

Schedule of budgeted administered cash flows

All cash collected by ASIC for corporations law revenue is transferred to the Official Public Account (OPA) at the close of business each day. Cash collected for Banking Act unclaimed monies, Life Insurance Act unclaimed monies and Corporations Act unclaimed monies is transferred to the OPA when received.

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AUSTRALIAN TAXATION OFFICE Section 1: Entity overview and resources ................................................................ 81

1.1 Strategic direction statement .............................................................................. 81

1.2 Entity resource statement ................................................................................... 82

1.3 Entity measures .................................................................................................. 86

1.4 Additional estimates and variations .................................................................... 88

1.5 Breakdown of additional estimates by Appropriation Bill ................................... 90

Section 2: Revisions to outcomes and planned performance ............................... 91

2.1 Outcome and performance information .............................................................. 91

Section 3: Explanatory tables and budgeted financial statements ....................... 92

3.1 Explanatory tables .............................................................................................. 92

3.2 Budgeted financial statements ........................................................................... 93

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AUSTRALIAN TAXATION OFFICE

Section 1: Entity overview and resources

1.1 STRATEGIC DIRECTION STATEMENT

There has been no significant change to the strategic direction of the Australian Taxation Office (ATO) from that outlined in the Portfolio Budget Statements 2015-16 (page 191).

The ATO is seeking an additional $46.2 million in departmental funding through Appropriation Bill (No. 3) 2015-16. This relates to an additional $36.0 million for the following measures as outlined in the Mid-Year Economic and Fiscal Outlook 2015-16:

• Enhanced Welfare Payment Integrity — non-employment income data matching ($0.7 million);

• Reducing red tape — improvements to data and analytics infrastructure of the Australian Taxation Office ($9.5 million); and

• Tax administration — Single Touch Payroll Reporting ($25.8 million).

This funding also includes the Growing Jobs and Small Business - streamlining business registration measure ($5.9 million) outlined in Budget Paper No. 2, Budget Measures 2015-16 and an adjustment to reflect movement of funds ($5.5 million), offset by a reduction of $1.2 million relating to the Public Sector Superannuation Accumulation Plan administration fees outlined in the Mid-Year Economic and Fiscal Outlook 2014-15.

The ATO is also seeking an additional $74.0 million as an equity injection through Appropriation Bill (No. 4) 2015-16. This relates to an additional $72.5 million for the following measures as outlined in the Mid-Year Economic and Fiscal Outlook 2015-16:

• Higher Education Loan Programme — strengthened compliance ($1.6 million);

• Reducing red tape — improvements to data and analytics infrastructure of the Australian Taxation Office ($11.4 million); and

• Tax administration — Single Touch Payroll Reporting ($59.5 million).

This funding also includes the Growing Jobs and Small Business - streamlining business registration measure ($2.4 million) outlined in Budget Paper No. 2, Budget Measures 2015-16 and an adjustment to reflect the re-appropriation of $0.9 million from prior year’s appropriation before it is repealed. The funding is offset by a reduction of $1.8 million of prior year’s appropriation.

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1.2 ENTITY RESOURCE STATEMENT

The Entity Resource Statement details the resourcing for the Australian Taxation Office 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 Nos. 3 and 4, Special Appropriations and Special Accounts.

Table 1.1: Australian Taxation Office 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(a) Departmental appropriation Prior year departmental appropriation(b) 416,816 416,816

Departmental appropriation(c) 3,352,116 3,258,560 46,226 3,304,786

s.74 Retained Revenue Receipts(d) 118,282 133,133 (27,389) 105,744

Total 3,470,398 3,808,509 18,837 3,827,346

Administered expenses Outcome 1 284 611 - 611

Total 284 611 - 611

Total ordinary annual services [A] 3,470,682 3,809,120 18,837 3,827,957

Other services(e) Departmental non-operating Equity injections 23,223 68,461 74,025 142,486

Total 23,223 68,461 74,025 142,486

Total other services [B] 23,223 68,461 74,025 142,486

Total available annual appropriations 3,493,905 3,877,581 92,862 3,970,443

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Table 1.1: Australian Taxation Office 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 Special appropriations limited by criteria/entitlement Public Governance, Performance and

Accountability Act 2013 - s.77(f) 93,088 100,000 - 100,000

Product Grants and Benefits Administration Act 2000 -Cleaner fuel grants 4,113 - 6,000 6,000

Product stewardship for oil 48,893 62,000 1,000 63,000

Superannuation Guarantee (Administration) Act 1992 434,987 481,000 (117,000) 364,000

Taxation Administration Act 1953 - s.16 (Non-refund items)(g) 10,100,625 10,734,404 300,924 11,035,328

Total special appropriations [C] 10,681,706 11,377,404 190,924 11,568,328

Total appropriations excluding Special Accounts 14,175,611 15,254,985 283,786 15,538,771

Special Accounts Opening balance 114,088 114,087 (4,289) 109,798

Appropriation Receipts 49,501 75,512 19,200 94,712

Non-appropriation receipts to Special Accounts 1,714,378 3,032,000 (408,000) 2,624,000

Total Special Account [D] 1,877,967 3,221,599 (393,089) 2,828,510

Total resourcing [A+B+C+D] 16,053,578 18,476,584 (109,303) 18,367,281

Less appropriations drawn from annual or special appropriations above and credited to special accounts (49,501) (75,512) (19,200) (94,712)

Total net resourcing for ATO 16,004,077 18,401,072 (128,503) 18,272,569

(a) Appropriation Act (No. 1) 2015-16 and Appropriation Bill (No. 3) 2015-16. (b) Estimated adjusted balance carried from previous year for annual appropriations. (c) Includes an amount of $115.1m in 2015-16 for the Departmental Capital Budget (refer to table 3.2.5 for further details).

(d) Estimated retained revenue receipts under s.74 of the Public Governance, Performance and Accountability (PGPA) Act 2013. (e) Appropriation Act (No. 2) 2015-16 and Appropriation Bill (No. 4) 2015-16. (f) Section 77 of the Public Governance, Performance and Accountability Act 2013 is used for repayments

not provided for in any other appropriation. Amounts received on or before 30 June 2014 were repaid under s.28 of the Financial Management and Accountability Act 1997. (g) These figures relate to administered expenses such as fuel tax credits, research and development tax incentives, and Australian Screen Production Incentive. Tax refunds for 2014-15 were $89.2 billion

including $165.7 million made on behalf of the ATO by the Department of Immigration and Border Protection (DIBP). Estimated tax refund items for 2015-16 are $98.9 billion including $190 million made on behalf of the ATO by the DIBP. Reader note: All figures are GST exclusive.

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Table 1.1: Australian Taxation Office resource statement — Additional Estimates for 2015-16 as at Additional Estimates February 2016 (continued)

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 on behalf of other entities (disclosed in the respective Entity Resource Statement) Attorney-General's Department - -

Australian Bureau of Statistics - 500

Australian Crime Commission - 144

Australian Federal Police - 615

Australian Securities and Investments Commission - -

Australian Transaction Reports and Analysis Centre - 6

Department of Education and Training - 990

Deparment of Human Services - -

Department of the Prime Minister and Cabinet - 467

Department of the Treasury - 4,119

Total payments made on behalf of other entities - 6,841

Receipts received from other entities for the provision of services (disclosed above in s.74 Retained Revenue Receipts section above) Attorney-General's Department - -

Australian Bureau of Statistics - 500

Australian Crime Commission 6 205

Australian Federal Police 323 615

Australian Securities and Investments Commission - -

Australian Transaction Reports and Analysis Centre 424 483

Department of Education and Training - 990

Department of Finance - -

Department of Foreign Affairs and Trade 1,500 964

Deparment of Human Services 3,869 5,948

Department of Immigration and Border Protection 2 2

Department of Infrastructure and Regional Development 778 1,513

Department of Social Services 602 602

Department of the Prime Minister and Cabinet - 1,482

Department of the Treasury - 73

Inspector-General of Taxation - -

Parliamentary Budget Office - -

Reserve Bank of Australia 111,312 77,904

118,816 91,281 Total s.74 relevant entity receipts received for the provision of services

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Table 1.1: Australian Taxation Office resource statement — Additional Estimates for 2015-16 as at Additional Estimates February 2016 (continued) Estimate at Budget

2015-16 $'000

Estimate at Additional Estimates 2015-16

$'000

Payments made to other entities for the provision of services (disclosed above) Attorney-General's Department 13,959 16,251

Australian Bureau of Statistics - 2

Australian Crime Commission - 2,916

Australian Electoral Commission - 6

Australian Federal Police - 4,400

Australian Financial Security Authority 478 1,248

Australian National Audit Office - 149

Australian Postal Corporation 91,828 47,145

Australian Prudential Regulation Authority 230 -

Australian Public Service Commission 1,356 1,326

Australian Securities and Investments Commission 1,202 1,972

Australian Transaction Reports and Analysis Centre - 1,593

Comcare 4,500 4,500

Commonwealth Director of Public Prosecutions 3,500 9,658

ComSuper 4,286 4,327

CrimTrac Agency 162 257

Department of Communications 33,650 -

Department of Defence 196 325

Department of Employment and Training - -

Department of Finance 11,772 9,844

Department of Foreign Affairs and Trade - 25

Deparment of Human Services 6,482 14,518

Department of Immigration and Border Protection 55,233 55,550

Department of Industry, Innovation & Science 947 947

Department of Parliamentary Services - 7

Department of the Prime Minister and Cabinet - 33,663

Department of the Treasury - 1,066

Office of Parliamentary Counsel - 29

Total payments made to other entities for the provision of services 229,781 211,724

Payments made to corporate entities within the Portfolio Reserve Bank of Australia Departmental annual appropriation 121,527 87,937

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1.3 ENTITY MEASURES

Table 1.2 summarises new Government measures taken since the 2015-16 Budget. The table is split into 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 Enhanced Welfare Payment Integrity - non-employment income data matching Departmental expenses 1.1 734 50 50 -

Freeze Road User Charge Collections Administered expenses 1.10 - 39,000 79,000 -

Higher Education Loan Programme - strengthened compliance Administered expenses 1.1 - - 48 96

Departmental expenses 1.1 - - 944 812

National Innovation and Science Agenda - tax incentives for angel investors Departmental expenses 1.1 - 1,001 1,111 1,303

Public Sector Superannuation Accumulation Plan - administration fees (a) Departmental expenses 1.1 (1,230) (1,230) (1,230) (1,230)

Public Sector Savings - Enterprise Resource Planning Systems (b) Departmental expenses 1.1 - - (1,874) (2,277)

Reducing red tape - improvements to data and analytics infrastructure of the Australian Taxation Office Departmental expenses 1.1 9,514 12,697 13,872 13,616

Tax administration - Single Touch Payroll Reporting Administered expenses 1.1 - 248 5,248 75

Departmental expenses 1.1 25,821 27,837 18,291 18,075

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

$'000

2017-18 $'000

2018-19 $'000

Tax compliance - improving compliance through third party reporting and data matching - delayed start Departmental expenses 1.1 - (5,304) (2,833) 8,136

Taxation treatment of biodiesel - extention of phase-in for new arrangement Administered expenses 1.10 - (500) (1,000) (2,000)

Total expense measures Administered - 38,748 83,296 (1,829)

Departmental 34,839 35,051 28,331 38,435

Total 34,839 73,799 111,627 36,606

Capital measures Higher Education Loan Programme - strengthened compliance Departmental capital 1.1 1,637 3 - -

Reducing red tape - improvements to data and analytics infrastructure of the Australian Taxation Office Departmental expenses 1.1 11,385 843 - -

National Innovation and Science Agenda - tax incentives for angel investors Departmental capital 1.1 - 2,140 - -

Tax administration - Single Touch Payroll Reporting Departmental expenses 1.1 59,524 19,946 12,671 1,286

Total capital measures Departmental 72,546 22,932 12,671 1,286

Total 72,546 22,932 12,671 1,286

(a) This measure was announced in the Mid-Year Economic and Fiscal Outlook 2014-15 as a cross portfolio measure and has not previously appeared in a portfolio statement. (b) This measure was announced in the Budget 2015-16 as a cross-portfolio measure and has not previously appeared in a portfolio statement. Prepared on a Government Financial Statistics (fiscal) basis.

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1.4 ADDITIONAL ESTIMATES AND VARIATIONS

The following tables detail the changes to the resourcing for the Australian Taxation Office 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 as parameter adjustments.

Table 1.3: Additional estimates and variations to outcomes from measures since 2015-16 Budget Programme 2015-16 $'000

2016-17 $'000 2017-18 $'000

2018-19 $'000

Outcome 1 Increase in estimates (departmental) Enhanced Welfare Payment Integrity -non-employment income data 1.1 734 50 50 -

Higher Education Loan Programme - strengthened compliance 1.1 - - 944 812

National Innovation and Science Agenda - tax incentives for angel investors 1.1 - 1,001 1,111 1,303

Reducing red tape - improvements to data and analytics infrastructure of the Australian Taxation Office 1.1 9,514 12,697 13,872 13,616

Tax administration - Single Touch Payroll Reporting 1.1 25,821 27,837 18,291 18,075

Decrease in estimates (departmental) Public Sector Superannuation Accumulation Plan - administration fees (a) 1.1 (1,230) (1,230) (1,230) (1,230)

Public Sector Savings - Enterprise Resource Planning Systems (b) 1.1 - - (1,874) (2,277)

Net impact on estimates for Outcome 1 (Departmental) 34,839 40,355 31,164 30,299

Increase in estimates (capital) Higher Education Loan Programme - strengthened compliance 1.1 1,637 3 - -

National Innovation and Science Agenda - tax incentives for angel investors 1.1 - 2,140 - -

Reducing red tape - improvements to data and analytics infrastructure of the Australian Taxation Office 1.1 11,385 843 - -

Tax administration - Single Touch Payroll Reporting 1.1 59,524 19,946 12,671 1,286

Net impact on estimates for Outcome 1 (capital) 72,546 22,932 12,671 1,286

(a) This measure was announced in the Mid-Year Economic and Fiscal Outlook 2014-15 as a cross portfolio measure and has not previously appeared in a portfolio statement. (b) This measure was announced in the Budget 2015-16 as a cross-portfolio measure and has not previously appeared in a portfolio statement.

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Table 1.4: Additional estimates and variations to outcomes from other variations Programme 2015-16 $'000 2016-17

$'000

2017-18 $'000

2018-19 $'000

Outcome 1 Adjustment to reflect movement in indices relating to prices and wages 1.1 - - (2,912) (5,631)

Net impact on estimates for Outcome 1 (departmental) - - (2,912) (5,631)

Increase in estimates (capital) Adjustment to reflect movement of funds 1.1 5,490 - - -

Adjustment to reflect the re-appropriation of prior year's appropriation before being repealed 1.1 880 - - -

Decrease in estimates (capital) Adjustment to reflect movement in indices relating to prices and wages 1.1 - - (113) (228)

Adjustment to reflect the reduction of prior year's appropriation 1.1 (1,800) - - -

Net impact on estimates for Outcome 1 (capital) 4,570 - (113) (228)

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1.5 BREAKDOWN OF ADDITIONAL ESTIMATES BY APPROPRIATION BILL

The following tables detail the Additional Estimates sought for the Australian Taxation Office 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: Confidence in the administration of aspects of - -

Australia’s taxation and superannuation systems through helping people understand their rights and obligations, improving ease of compliance and access to benefits, and managing non-compliance with the law. 3,352,116 3,258,560 3,304,786 46,226 -

Total departmental 3,352,116 3,258,560 3,304,786 46,226 -

2014-15 available appropriation is included to allow a comparison of this year's appropriation with what was made available for use in the previous year. Available appropriation is the amount available to be drawn down, and is equal to: Budget Appropriation + Additional Estimates Appropriation - Movement of Funds to 2015-16.

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 23,223 68,461 142,486 74,025 -

Total non-operating 23,223 68,461 142,486 74,025 -

2014-15 available appropriation is included to allow a comparison of this year's appropriation with what was made available for use in the previous year. Available appropriation is the amount available to be drawn down, and is equal to: Budget Appropriation + Additional Estimates Appropriation.

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Section 2: Revisions to outcomes and planned performance

2.1 OUTCOME AND PERFORMANCE INFORMATION

There has been no change to the ATO’s outcome or outcome strategy from that included in the Portfolio Budget Statements 2015-16 (page 197).

There has been no change to the programme objective, expenses, deliverables or key performance indicators for programmes 1.2 to 1.24 that affect Appropriation Bills Nos. 3 and 4.

Table 2.1: Budgeted expenses and resources for Outcome 1 Outcome 1: Confidence in the administration of aspects of Australia’s taxation and superannuation systems through helping people understand their rights and obligations, improving ease of compliance and access to benefits, and managing non-compliance with the law

2014-15 Actual expenses

$'000

2015-16 Revised estimated expenses

$'000

Programme 1.1: Australian Taxation Office Departmental expenses Departmental appropriation(a) 3,158,983 3,112,738

Expenses not requiring appropriation in the budget year(b) 90,972 189,240

Total for Programme 1.1 3,249,955 3,301,978

2014-15 2015-16

Average Staffing Level (number) 18,435 18,497

(a) Departmental Appropriation combines ‘Ordinary annual services (Appropriation Act No. 1 and Bill No. 3)’ and ‘Retained Revenue Receipts under s.74 of the PGPA Act 2013’. (b) Expenses not requiring appropriation in the Budget year is made up of depreciation expense, amortisation expense, makegood expense and audit fees.

Programme objective 1.1 Australian Taxation Office

There has been no change to the programme objective, deliverables or key performance indicators included in the Portfolio Budget Statements 2015-16.

Table 2.2: Programme expenses 1.1 Australian Taxation Office 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: Departmental items 3,158,983 3,112,738 3,051,670 2,921,529 2,837,082

Expenses not requiring appropriation in the Budget year 90,972 189,240 190,728 192,226 193,739

Total programme expenses 3,249,955 3,301,978 3,242,398 3,113,755 3,030, 821

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Section 3: Explanatory tables and budgeted financial statements

3.1 EXPLANATORY TABLES

3.1.1 Estimates of special account flows

Special accounts provide a means to set aside and record amounts used for specific purposes. Table 3.1.1 shows the expected additions (receipts) and reductions (payments) for each account used by the ATO. The corresponding table in the Portfolio Budget Statements 2015-16 is Table 3.1.1.

Table 3.1.1: Estimates of special account flows and balances Outcome Opening balance $'000

Receipts

$'000

Payments

$'000

Adjustments

$'000

Closing balance $'000

Excise Security Deposits (A) 2015-16 1 356 - - - 356

2014-15 355 1 - - 356

Services for Other Entities and Trust Moneys Special Account (A) 2015-16 1 2,292 10,000 10,000 - 2,292

2014-15 2,596 1,371 1,675 - 2,292

Superannuation Clearing House Special Account (A) 2015-16 1 28,762 2,614,000 2,629,000 - 13,762

2014-15 20,005 1,708,825 1,700,068 - 28,762

Superannuation Holding Accounts Special Account (A)

2015-16 1 72,098 79,900 13,700 - 138,298

2014-15 74,583 27,101 29,586 - 72,098

Services for Other Entities and Trust Moneys Special Account (D) 2015-16 1 - - - - -

2014-15 - 570 570 - -

Australian Charities and Not-for-profits Commission Special Account (D) 2015-16 1 6,290 14,812 16,686 - 4,416

2014-15 5,341 15,398 14,449 - 6,290

Valuation Services Special Account (D) 2015-16 1 - - - - -

2014-15 11,209 10,611 21,820 - -

Total special accounts 2015-16 Budget estimate 109,798 2,718,712 2,669,386 - 159,124

2014-15 actual 114,089 1,763,877 1,768,168 - 109,798

(A) Administered (D) Departmental

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3.2 BUDGETED FINANCIAL STATEMENTS

3.2.1 Analysis of budgeted financial statements

Budgeted departmental comprehensive income statement

The ATO is budgeting for a balanced budget in 2015-16.

The budgeted departmental comprehensive income statement also reflects changes arising from measures since Budget as outlined in Table 1.2.

Budgeted departmental balance sheet

The ATO’s assets are predominantly non-financial assets.

The ATO’s liabilities continue to be predominantly employee entitlements.

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3.2.2 Budgeted financial statements

Departmental 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 2,024,395 1,918,089 1,902,937 1,832,094 1,795,089

Suppliers 1,209,486 1,378,856 1,324,502 1,259,506 1,210,686

Depreciation and amortisation 163,830 182,662 184,150 185,648 187,161

Finance costs 981 - - - -

Write-down and impairment of assets 2,735 - - - -

Losses from asset sales 2 - - - -

Other expenses 1,482 - - - -

Total expenses 3,402,911 3,479,607 3,411,589 3,277,248 3,192,936

LESS: OWN-SOURCE INCOME Own-source revenue

Sale of goods and rendering of services 96,740 100,709 92,295 96,235 99,271

Other revenue 4,532 3,528 3,528 3,528 3,528

Total own-source revenue 101,272 104,237 95,823 99,763 102,799

Gains Sale of assets Other 2,053 3,050 3,050 3,050 3,050

Total gains 2,053 3,050 3,050 3,050 3,050

Total own-source income 103,325 107,287 98,873 102,813 105,849

Net cost of (contribution by) services 3,299,586 3,372,320 3,312,716 3,174,435 3,087,087

Revenue from Government 3,215,199 3,189,658 3,128,566 2,988,787 2,899,926

Surplus/(deficit) attributable to the Australian Government (84,387) (182,662) (184,150) (185,648) (187,161)

OTHER COMPREHENSIVE INCOME Revaluation of restoration obligations provision (490) - - - -

Changes in asset revaluation surplus 8,102 - - - -

Total other comprehensive income 7,612 - - - -

Total comprehensive income/(loss) (76,775) (182,662) (184,150) (185,648) (187,161)

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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

87,055 - - - -

less depreciation/amortisation expenses previously funded through revenue appropriations(a) 163,830 182,662 184,150 185,648 187,161

Total comprehensive income/(loss) - as per the Statement of Comprehensive Income (76,775) (182,662) (184,150) (185,648) (187,161)

(a) From 2010-11, the Government introduced net cash appropriation arrangements where Appropriation Act No. 1 or Bill No. 3 revenue appropriations for the depreciation/amortisation expenses of non-corporate Commonwealth entities were replaced with a separate capital budget (the Departmental Capital Budget, or DCB) provided through Appropriation Act No. 1 or Bill No. 3 equity appropriations. For information regarding DCBs, please refer to Table 3.2.5 Departmental Capital Budget Statement. Prepared on Australian Accounting Standards basis.

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 46,087 46,087 46,087 46,087 46,087

Trade and other receivables 413,911 279,703 303,474 292,353 288,499

Total financial assets 459,998 325,790 349,561 338,440 334,586

Non-financial assets Land and buildings 215,645 229,437 238,807 263,976 290,365

Property, plant and equipment 55,195 60,423 68,154 65,810 63,389

Intangibles 472,741 525,648 479,551 413,449 325,551

Other non-financial assets 109,726 105,635 101,328 97,562 95,364

Total non-financial assets 853,307 921,143 887,840 840,797 774,669

Total assets 1,313,305 1,246,933 1,237,401 1,179,237 1,109,255

LIABILITIES Payables Suppliers 228,099 227,149 225,236 224,643 225,360

Employees 71,815 13,181 21,628 21,113 20,646

Other payables 3,158 3,158 3,132 3,124 3,134

Total payables 303,072 243,488 249,996 248,880 249,140

Interest bearing liabilities Leases 113,581 99,004 87,175 75,797 64,419

Total interest bearing liabilities 113,581 99,004 87,175 75,797 64,419

Provisions Employee provisions 659,721 593,734 615,533 621,685 627,899

Other provisions 16,535 15,359 14,427 13,391 12,243

Total provisions 676,256 609,093 629,960 635,076 640,142

Total liabilities 1,092,909 951,585 967,131 959,753 953,701

Net assets 220,396 295,348 270,270 219,484 155,554

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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

EQUITY* Parent entity interest Contributed equity 1,086,245 1,343,859 1,502,931 1,637,793 1,761,024

Reserves 109,165 109,165 109,165 109,165 109,165

Retained surplus/(accumulated deficit) (975,014) (1,157,676) (1,341,826) (1,527,474) (1,714,635)

Total parent entity interest 220,396 295,348 270,270 219,484 155,554

Total Equity 220,396 295,348 270,270 219,484 155,554

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

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 (975,014) 109,165 1,086,245 220,396 Adjusted opening balance (975,014) 109,165 1,086,245 220,396

Comprehensive income Other comprehensive income -

Surplus/(deficit) for the period (182,662) (182,662)

Total comprehensive income (182,662) - - (182,662)

of which: Attributable to the Australian Government (182,662) (182,662)

Transactions with owners Contributions by owners Equity Injection - Appropriation 142,486 142,486

Departmental Capital Budget (DCB) 115,128 115,128

Sub-total transactions with owners - - 257,614 257,614

Estimated closing balance as at 30 June 2016 (1,157,676) 109,165 1,343,859 295,348

Closing balance attributable to the Australian Government (1,157,676) 109,165 1,343,859 295,348

Prepared on Australian Accounting Standards basis.

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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 3,273,566 3,324,300 3,103,342 2,997, 585 2,902,219

Sale of goods and rendering of services 95,315 105,744 97,052 101,091 104,181

Interest 21 - - - -

Net GST received 115,636 121,492 120,204 113,523 108,454

Cash from the OPA 223,645 233,784 231,814 231,203 231,941

Other 6 - - - -

Total cash received 3,708,189 3,785,320 3,552,412 3,443, 402 3,346,795

Cash used Employees 2,146,322 2,040,975 1,872,547 1,825, 780 1,788,769

Suppliers 1,326,997 1,513,586 1,451,969 1,378, 910 1,326,085

Cash to the OPA 232,759 233,784 231,814 231,203 231,941

Total cash used 3,706,078 3,788,345 3,556,330 3,435, 893 3,346,795

Net cash from/(used by) operating activities 2,111 (3,025) (3,918) 7,509 -

INVESTING ACTIVITIES Cash received Proceeds from sales of property, plant and equipment 8 - - - -

Total cash received 8 - - - -

Cash used

Purchase of property, plant and equipment 37,583 56,047 56,289 61,716 63,176

Purchase of intangibles - computer software 115,380 198,542 98,865 80,655 60,055

Total cash used 152,963 254,589 155,154 142,371 123,231

Net cash from/(used by) investing activities (152,955) (254,589) (155,154) (142, 371) (123,231)

FINANCING ACTIVITIES Cash received Contributed equity 152,963 257,614 159,072 134,862 123,231

Total cash received 152,963 257,614 159,072 134,862 123,231

Cash used Dividends paid 510 - - - -

Total cash used 510 - - - -

Net cash used by financing activities 152,453 257,614 159,072 134,862 123,231

Net increase/(decrease) in cash held 1,609 - - - -

Cash and cash equivalents at the beginning of the reporting period 44,478 46,087 46,087 46,087 46,087

Cash and cash equivalents at the end of the reporting period 46,087 46,087 46,087 46,087 46,087

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) 133,795 115,128 109,889 114,886 115,897

Equity injections - Act No. 2 26,537 142,486 49,183 19,976 7,334

Total new capital appropriations 160,332 257,614 159,072 134,862 123,231

Provided for: Purchase of non-financial assets 160,332 257,614 159,072 134,862 123,231

Other Items - - - - -

Total Items 160,332 257,614 159,072 134,862 123,231

PURCHASE OF NON-FINANCIAL ASSETS

Funded by capital appropriations(a) 21,315 139,461 45,265 27,485 7,334

Funded by capital appropriation - DCB(b) 128,539 115,128 109,889 114,886 115,897 Funded internally from departmental resources(c) - - - - -

TOTAL AMOUNT SPENT 149,854 254,589 155,154 142,371 123,231

RECONCILIATION OF CASH USED TO ACQUIRE ASSETS TO ASSET MOVEMENT TABLE Total purchases 149,854 254,589 155,154 142,371 123,231

TOTAL CASH REQUIRED TO ACQUIRE ASSETS 149,854 254,589 155,154 142,371 123,231

(a) Includes both current and prior Act 2 and Bills 4/6 appropriations. (b) Does not include annual finance lease costs. Includes purchases from current and previous years’ Departmental Capital Budgets (DCBs).

(c) Includes 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; and - proceeds from the sale of assets. Prepared on Australian Accounting Standards basis.

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Table 3.2.6: Statement of asset movements (2015-16 Budget year) — Departmental Buildings

$'000

Other

property, plant and equipment $'000

Computer software and intangibles

$'000

Total

$'000

As at 1 July 2015 Gross book value 217,487 91,319 1,179,695 1,488,501

Accumulated depreciation/amortisation and impairment (1,842) (36,124) (706,954) (744,920)

Opening net book balance 215,645 55,195 472,741 743,581

Capital asset additions Estimated expenditure on new or replacement assets By purchase - appropriation equity(a) 431 - 139,030 139,461

By purchase - appropriation ordinary annual services(b) 39,556 16,060 59,512 115,128

By purchase - other - - - -

Total additions 39,987 16,060 198,542 254,589

Other movements Depreciation/amortisation expense (26,195) (10,832) (145,635) (182,662)

Total other movements (26,195) (10,832) (145,635) (182,662)

As at 30 June 2016 Gross book value 257,474 107,379 1,378,237 1,743,090

Accumulated depreciation/amortisation and impairment (28,037) (46,956) (852,589) (927,582)

Closing net book balance 229,437 60,423 525,648 815,508

(a) ‘Appropriation equity’ refers to equity injections provided through Appropriation Act (No.2) 2015-16 and Bill (No.4) 2015-16. (b) ‘Appropriation ordinary annual services’ refers to funding provided through Appropriation Act (No.1) 2015-16 and Bill (No.3) 2015-16 for depreciation/amortisation expenses, DCBs or other operational

expenses. Prepared on Australian Accounting Standards basis.

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Schedule of administered activity

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

Suppliers 181 611 5,303 8,797 272

Subsidies 9,472,449 9,685,928 10,086,246 10,552,435 11,119,988

Personal benefits 1,164,287 1,121,400 1,097,400 384,000 393,000

Finance costs 222,537 275,000 275,000 275,000 275,000

Write-down and impairment of assets 5,330,176 6,916,408 7,118,000 7,714,000 8,419,000

Other expenses 351,693 386,000 373,000 347,000 340,000

Total expenses administered on behalf of Government 16,541,323 18,385,347 18,954,949 19,281,232 20,547,260

LESS:

Taxation revenue Income tax 259,171,506 274,609,537 291,414,085 311,986,545 335,122,030

Indirect tax 81,517,012 82,553,000 86,620,000 90,850,000 95,430,000

Other taxes 915,295 982,019 1,051,155 1,070,900 1,136,200

Total taxation revenue 341,603,813 358,144,556 379,085,240 403,907,445 431,688,230

Non-taxation revenue

Other revenue 404,810 573,500 579,000 369,000 369,000

Total non-taxation revenue 404,810 573,500 579,000 369,000 369,000

Total own-source revenue administered on behalf of Government 342,008,623 358,718,056 379,664,240 404,276,445 432,057,230

Net cost of/(contribution by) services (325,467,300) (340,332,709) (360,709,291) (384,995,213) (411,509,970) Surplus/(Deficit) 325,467,300 340,332,709 360,709,291 384,995,213 411,509,970

OWN-SOURCE INCOME Own-source revenue

Prepared on Australian Accounting Standards basis.

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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 314,859 314,859 314,859 314,859 314,859

Taxation receivables 17,511,796 17,746,924 18,364,009 19,201,554 20,352,584

Accrued revenues 12,711,279 13,376,279 14,071,279 14,766,279 15,581,279

Total financial assets 30,537,934 31,438,062 32,750,147 34,282,692 36,248,722

Total assets administered on behalf of Government 30,537,934 31,438,062 32,750,147 34,282,692 36,248,722

LIABILITIES Provisions Taxation refunds provided 2,251,926 2,251,926 2,251,926 2,251,926 2,251,926

Other provisions 873,274 1,076,274 1,190,274 1,046,274 934,274

Total provisions 3,125,200 3,328,200 3,442,200 3,298,200 3,186,200

Payables Subsidies 4,093,190 4,553,479 4,889,636 5,178,625 5,497,378

Personal benefits 1,278,974 1,258,424 1,239,874 527,274 450,574

Other payables 837,372 903,572 925,772 937,872 929,272

Total payables 6,209,536 6,715,475 7,055,282 6,643,771 6,877,224

Total liabilities administered on behalf of Government 9,334,736 10,043,675 10,497,482 9,941,971 10,063,424

Net assets/(liabilities) 21,203,198 21,394,387 22,252,665 24,340,721 26,185,298

Prepared on Australian Accounting Standards basis.

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 Taxes 336,197,246 349,940,001 370,205,000 394,175, 000 420,830,000

Other 1,070,909 1,393,419 1,297,255 868,100 868,800

Total cash received 337,268,155 351,333,420 371,502,255 395,043, 100 421,698,800 Cash used Borrowing costs 220,374 275,000 275,000 275,000 275,000

Subsidies paid 8,864,918 9,225,639 9,750,089 10,263, 446 10,801,235

Personal benefits 1,205,409 1,141,950 1,115,950 1,096, 600 469,700

Suppliers 409 611 5,303 8,797 272

Other 401,288 548,700 504,900 492,100 487,200

Total cash used 10,692,398 11,191,900 11,651,242 12,135, 943 12,033,407

Net cash from/(used by) operating activities 326,575,757 340,141,520 359,851,013 382,907,157 409,665, 393

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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

FINANCING ACTIVITIES Cash received Cash from Official Public Account 10,692,398 11,191,900 11,651,242 12,135,943 12,033,407 Total cash received 10,692,398 11,191,900 11,651,242 12,135,943 12,033,407

Cash used Cash to Official Public Account 337,396,374 351,333,420 371,502,255 395,043,100 421,698,800 Total cash used 337,396,374 351,333,420 371,502,255 395,043,100 421,698,800

Net cash from/(used by) financing activities (326,703,976) (340,141,520) (359,851,013) (382,907,157) (409,665,393)

Net increase/(decrease) in cash held (128,219) - - - -

Cash and cash equivalents at beginning of reporting period 443,078 581,639 581,639 581,639 581,639

Cash and cash equivalents at end of reporting period 314,859 581,639 581,639 581,639 581,639

Prepared on Australian Accounting Standards basis.

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Notes to the financial statements

Basis of accounting

The ATO’s budgeted financial statements have been prepared on an accrual basis.

Notes to the departmental statements

The departmental financial statements, included in Tables 3.2.1 to 3.2.6 have been prepared on the basis of Australian Accounting Standards and Department of Finance guidance for the preparation of financial statements.

The budget statements and estimated forward years have been prepared to reflect the following matters.

Cost of administering goods and services tax

Departmental statements include the estimated costs of administering the goods and services tax (GST) pursuant to the ‘intergovernmental agreement on the reform of Commonwealth-State Financial Relations’. The GST revenue is collected on behalf of the States and Territories which agree to compensate the Australian Government for the agreed GST administration costs.

The GST administration costs are reported in the annual GST Administration Performance Report.

Notes to the administered statements

The administered financial statements at Tables 3.2.7 to 3.2.9 have been prepared on the basis of Australian Accounting Standards and Department of Finance guidance for the preparation of financial statements.

The standards require that taxation revenues are recognised on an accrual basis when the following conditions apply:

• the taxpayer or the taxpayer group can be identified in a reliable manner;

• the amount of tax or other statutory charge is payable by the taxpayer or taxpayer group under legislative provisions; and

• the amount of the tax or statutory charge payable by the taxpayer or taxpayer group can be reliably measured, and it is probable that the amount will be collected.

The amount of taxation revenue recognised takes account of legislative steps, discretion to be exercised and any refunds and/or credit amendments to which the taxpayers may become entitled.

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Recognition of taxation revenue

Taxation revenue is recognised when the Government, through the application of legislation by the ATO and other relevant activities, gains control over the future economic benefits that flow from taxes and other statutory charges. This methodology, known as the Economic Transaction Method (ETM), relies on the estimation of probable flows of taxes from transactions which have occurred in the economy, but have not yet been reported, and are likely to be reported to the ATO through an assessment or disclosure.

However, in circumstances when there is an ‘inability to reliably measure tax revenues when the underlying transactions or events occur’, the accounting standards permit an alternative approach known as the Taxation Liability Method (TLM). Under this basis, taxation revenue is recognised at the earlier of when an assessment of a tax liability is made or payment is received by the ATO. This recognition policy means that taxation revenue is generally measured at a later time than would be the case if it were measured under the ETM method.

In accordance with the above revenue recognition approach, the ATO uses ETM as the basis for revenue recognition, except for income tax for individuals, companies, superannuation funds, superannuation surcharge and the minerals resource rent tax (repealed September 2014) which are recognised on a TLM basis.

Items recognised as reductions to taxation revenue

The following items are recognised as reductions (increases) to taxation revenue and not as an expense:

• refunds of revenue; and

• increase (decrease) in movement of provision for credit amendments.