PBS Aministrative Appeals Tribunal - 2016-17

Administrative Appeals Tribunal

Section 1: Entity overview and resources

1.1Strategic direction statement

The Administrative Appeals Tribunal (AAT) conducts independent merits review of administrative decisions made under Commonwealth laws. The AAT reviews decisions made by Australian Government ministers, departments and agencies and, in limited circumstances, decisions made by state government and non-government bodies.

The AAT can review decisions made under more than 400 Acts and legislative instruments. The most common types of decisions reviewed by the AAT relate to migration and refugee visas, family assistance and social security, child support, Commonwealth workers’ compensation, taxation, and veterans’ entitlements. The AAT also reviews decisions made under the National Disability Insurance Scheme. The number of applications is expected to grow during 2016–17 with the commencement of the roll-out of the full scheme.

The Immigration Assessment Authority, a separate office within the AAT, provides a fast-track review process in relation to certain decisions to refuse protection visas.

The AAT provides its services throughout Australia from registries located in the state capital cities, in the Australian Capital Territory and on Norfolk Island.

The AAT amalgamated with the Migration Review Tribunal, the Refugee Review Tribunal and the Social Security Appeals Tribunal on 1 July 2015. During 2016–17, the AAT will pursue a range of actions in accordance with its corporate plan to further consolidate and develop the merged organisation.

1.2Entity resource statement

Table 1.1 shows the total funding from all sources available to the AAT for its operations and to deliver programs and services on behalf of the government.

Table 1.1 is prepared on a resourcing (appropriations and cash available) basis, while the outcome expenses table in section 2 and the financial statements in section 3 are prepared on an accrual basis.

Table 1.1: Entity resource statement—Budget estimates for 2016–17 as at Budget May 2016

2015–16 Estimated actual
$’000 / 2016–17 Estimate
$’000
DEPARTMENTAL
Annual appropriations—ordinary annual services(a)
Prior year appropriations available(b) / 71,146 / 72,893
Departmental appropriation / 136,929 / 142,156
s 74 retained revenue receipts(c) / 1,177 / 1,177
Departmental capital budget(d) / – / 4,075
Annual appropriations—other services—non-operating(e)
Equity injection / – / 18,343
Total departmental resourcing / 209,252 / 238,644
ADMINISTERED
Total administered special appropriations(f) / 6,400 / 6,400
Total administered resourcing / 6,400 / 6,400
Total net resourcing for entity / 215,652 / 245,044
2015–16 / 2016–17
Average staffing level (number)(g) / 715 / 805

Prepared on a resourcing (appropriations and cash available) basis.

Note: All figures are GST exclusive and may not match figures in the cash flow statement.

(a) Appropriation Bill (No. 1) 2016–17.

(b) Estimated adjusted balance carried forward from previous year for annual appropriations. The 2015–16 amounts relate to AAT and Migration Review Tribunal and Refugee Review Tribunal unspent amounts at the end of 2014–15. The 2016–17 amounts relate to forecast closing unspent appropriations as at the end of 2015–16.

(c) Estimated retained revenue receipts under section 74 of the Public Governance, Performance and Accountability Act 2013 (PGPA Act).

(d) Departmental capital budgets are not separately identified in Appropriation Bill (No.1) and form part of ordinary annual services items. See Table 3.5 for further details. For accounting purposes, this amount is designated as ‘contributions by owners’.

(e) Appropriation Bill (No. 2) 2016–17.

(f) Repayments not provided for under other appropriations under section 77 of the PGPA Act.

(g) Average staffing level numbers include members and staff.

1.3Budget measures

Budget measures announced since the 2015–16 Mid-Year Economic and Fiscal Outlook(MYEFO) relating to the AAT are detailed in Budget Paper No.2 and are summarised in Part1 of Table1.2. MYEFO measures and other measures not previously reported in a portfolio statement are summarised in Part2.

Table 1.2: Entity 2016–17 Budget measures

Part 1: Measures announced since the 2015–16 MYEFO

Program / 2015–16 $’000 / 2016–17 $’000 / 2017–18 $’000 / 2018–19 $’000 / 2019–20 $’000
Expense measures
Cashless Debit Card—third trial site(a) / 1.1
Departmental expenses / – / nfp / – / – / –
National Disability Insurance Scheme Savings Fund(a) / 1.1
Departmental expenses / – / 591 / 794 / 850 / 250
Total expense measures / – / 591 / 794 / 850 / 250
Capital measures
Trans-Pacific Partnership—implementation(b) / 1.1
Departmental capital / – / 150 / – / – / –
Total capital measures / – / 150 / – / – / –

Prepared on a Government Finance Statistics (fiscal) basis. Figures displayed as a negative represent a decrease in funds, and figures displayed as a positive represent an increase in funds.

(a) The lead entity for this measure is Department of Social Services. The full measure description and package details appear in Budget Paper No.2 under the Social Services portfolio.

(b) This is a cross-portfolio measure. The lead entity is the Department of Foreign Affairs and Trade.

Part 2: MYEFO measures and other measures not previously reported in a portfolio statement

Program / 2015–16 $’000 / 2016–17 $’000 / 2017–18 $’000 / 2018–19 $’000 / 2019–20 $’000
Expense measures
Public Sector Savings—Shared and Common Services Programme(a) / 1.1
Departmental expenses / – / (198) / (396) / (396) / –
Total expense measures / – / (198) / (396) / (396) / –

Prepared on a Government Finance Statistics (fiscal) basis. Figures displayed as a negative represent a decrease in funds, and figures displayed as a positive represent an increase in funds.

(a) This is a cross-portfolio measure that was published in the 2015–16 MYEFO. The lead entity is the Department of Finance.

1.4Changes to outcome and program structure

Table 1.3: Outcome change

Outcome 1 / Provide correct or preferable decisions through a mechanism of independent review of administrative decisions that is accessible, fair, just, economical, informal, quick and proportionate
Description of change: / New outcome, created due to amalgamation; supersedes the old Outcome 1
Old statement: / Access to a fair, just, economical, informal and quick review mechanism for applicants through reviews of government administrative decisions, including dispute resolution processes and independent formal hearings

Section 2: Outcomes and planned performance

Government outcomes are the intended results, impacts or consequences of actions by the government on the Australian community. Commonwealth programs are the primary vehicle by which government entities achieve the intended results of their outcome statements. Entities are required to identify the programs that contribute to government outcomes over the budget and forward years.

The AAT’s outcome is described below together with its related program.

Note: From 1 July 2015, performance reporting requirements in the Portfolio Budget Statements sit alongside the requirements under the enhanced Commonwealth performance framework. It is anticipated that the performance criteria described in Portfolio Budget Statements will be read with broader information provided in an entity’s corporate plans and annual performance statements—included in annual reports from October 2016—to provide the entity’s complete performance story.

2.1Budgeted expenses and performance for Outcome 1

Outcome 1: Provide correct or preferable decisions through a mechanism of independent review of administrative decisions that is accessible, fair, just, economical, informal, quick and proportionate

Budgeted expenses for Outcome 1

Table 2.1 shows how much the AAT intends to spend (on an accrual basis) on achieving Outcome 1, broken down by program and by administered and departmental funding sources.

Table 2.1: Budgeted expenses for Outcome 1

2015–16 Estimated actual
$’000 / 2016–17
Budget
$’000 / 2017–18 Forward estimate
$’000 / 2018–19 Forward estimate
$’000 / 2019–20
Forward estimate
$’000
Program 1.1: Administrative Appeals Tribunal
Administered expenses
Special appropriations(a) / 9,000 / 9,000 / 9,000 / 9,000 / 9,000
Departmental expenses
Departmental appropriation / 138,308 / 143,535 / 140,918 / 141,459 / 136,205
s 74 retained revenue receipts(b) / 1,177 / 1,177 / 1,177 / 1,177 / 300
Expenses not requiring appropriation in the budget year(c) / 5,671 / 6,290 / 6,290 / 6,540 / 5,330
Total expenses for Outcome 1 / 154,156 / 160,002 / 157,385 / 158,176 / 150,835
2015–16 / 2016–17
Average staffing level (number)(d) / 715 / 805

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

(a) Special appropriations consist of refunds of fees paid under section 77 of the Public Governance, Performance and Accountability Act 2013 (PGPA Act); this also includes a bad debt provision component.

(b) Estimated retained revenue receipts under section 74 of the PGPA Act.

(c) Expenses not requiring appropriation in the budget year are made up of depreciation and amortisation expenses, make-good expenses, Australian National Audit Office audit fees, notional contributions under the Judges’ Pension Scheme and a portion of the AAT’s occupancy cost of the Commonwealth Law Courts buildings in Brisbane and Hobart.

(d) Average staffing level numbers include members and staff.

Performance criteria for Outcome 1

Table 2.2 details the performance criteria for the program associated with Outcome1. It also summarises how the program is delivered.

Table 2.2: Performance criteria for Outcome 1

Outcome 1: Provide correct or preferable decisions through a mechanism of independent review of administrative decisions that is accessible, fair, just, economical, informal, quick and proportionate
Program 1.1: Administrative Appeals Tribunal
The AAT provides administrative justice and contributes to improving the quality of government
decision-making by reviewing administrative decisions in accordance with the Administrative Appeals Tribunal Act1975.
Delivery / Providing review of administrative decisions for people and organisations who apply for review of decisions that affect their interests.
Performance information
Year / Performance criteria / Targets
2015–16 / Number of applications finalised / 40,669
Proportion of applications finalised within 12 months of lodgement / 75%
2016–17 / Number of applications finalised / 50,670
Proportion of applications finalised within 12 months of lodgement / 75%
2017–18 and beyond / Number of applications finalised / 2017–18: 56,662
2018–19: 56,061
2019–20: 56,799
Proportion of applications finalised within 12 months of lodgement / 2017–18: 75%
2018–19: 75%
2019–20: 75%
Purposes / The AAT’s role is to provide independent review on the merits of a wide range of administrative decisions made under the laws of the Commonwealth of Australia and of Norfolk Island.
As set out in section 2A of the Administrative Appeals Tribunal Act 1975, in carrying out its functions the AAT must pursue the objective of providing a mechanism of review of administrative decisions that:
•is accessible
•is fair, just, economical, informal and quick
•is proportionate to the importance and complexity of the matter
•promotes public trust and confidence in the decision-making of the Tribunal.

Section 3: Budgeted financial statements

This section presents budgeted financial statements that provide a comprehensive snapshot of entity finances for the 2016–17budget year, including the impact of budget measures and resourcing.

3.1Differences between entity resourcing and financial statements

There is no material difference between the entity resourcing and financial statements.

3.2Analysis of budgeted financial statements

Departmental

Changes since the 2015–16 Portfolio Additional Estimates Statements include funding for new measures and indexation changes across the budget and forward years.

Administered

Provision of bad debts due to the Australian Government relates to anticipated
non-collection of application fees where applications for review are unsuccessful.

3.3Budgeted financial statements tables

Table 3.1: Comprehensive income statement (showing net cost of services)
for the period ended 30June

2015–16 Estimated actual $’000 / 2016–17 Budget $’000 / 2017–18 Forward estimate $’000 / 2018–19 Forward estimate $’000 / 2019–20 Forward estimate $’000
EXPENSES
Employee benefits / 110,883 / 114,648 / 112,831 / 112,932 / 104,352
Suppliers / 28,602 / 30,064 / 29,264 / 29,704 / 32,153
Depreciation and amortisation / 5,671 / 6,290 / 6,290 / 6,540 / 5,330
Total expenses / 145,156 / 151,002 / 148,385 / 149,176 / 141,835
LESS:
OWN-SOURCE INCOME
Own-source revenue
Sale of goods and rendering of services / 1,177 / 1,177 / 1,177 / 1,177 / 300
Total own-source revenue / 1,177 / 1,177 / 1,177 / 1,177 / 300
Gains
Other / 1,379 / 1,379 / 1,361 / 1,382 / 365
Total gains / 1,379 / 1,379 / 1,361 / 1,382 / 365
Total own-source income / 2,556 / 2,556 / 2,538 / 2,559 / 665
Net cost of (contribution by) services / 142,600 / 148,446 / 145,847 / 146,617 / 141,170
Revenue from government / 136,929 / 142,156 / 139,557 / 140,077 / 135,840
Surplus (deficit) attributable to the Australian Government / (5,671) / (6,290) / (6,290) / (6,540) / (5,330)
OTHER COMPREHENSIVE INCOME
Changes in asset revaluation surplus / – / – / – / – / –
Total other comprehensive income / – / – / – / – / –
Total comprehensive income (loss) / (5,671) / (6,290) / (6,290) / (6,540) / (5,330)
Total comprehensive income (loss) attributable to the Australian Government / (5,671) / (6,290) / (6,290) / (6,540) / (5,330)
Note: Impact of net cash appropriation arrangements
2015–16 $’000 / 2016–17 $’000 / 2017–18 $’000 / 2018–19 $’000 / 2019–20 $’000
Total comprehensive income (loss) excluding depreciation/amortisation expenses previously funded through revenue appropriations / – / – / – / – / –
Less depreciation/amortisation expenses previously funded through revenue appropriations / 5,671 / 6,290 / 6,290 / 6,540 / 5,330
Total comprehensive income (loss) as per the statement of comprehensive income / (5,671) / (6,290) / (6,290) / (6,540) / (5,330)

Prepared on Australian Accounting Standards basis.

Table 3.2: Budgeted departmental balance sheet (as at 30 June)

2015–16 Estimated actual $’000 / 2016–17 Budget $’000 / 2017–18 Forward estimate $’000 / 2018–19 Forward estimate $’000 / 2019–20 Forward estimate $’000
ASSETS
Financial assets
Cash and cash equivalents / 807 / 807 / 807 / 807 / 807
Trade and other receivables / 74,628 / 74,657 / 74,678 / 74,687 / 74,687
Total financial assets / 75,435 / 75,464 / 75,485 / 75,494 / 75,494
Non-financial assets
Land and buildings / 13,792 / 31,135 / 29,385 / 27,485 / 33,347
Property, plant and equipment / 5,241 / 6,077 / 5,598 / 5,604 / 6,216
Intangibles / 4,276 / 2,225 / 2,039 / 1,386 / 1,338
Other non-financial assets / 675 / 675 / 675 / 675 / 675
Total non-financial assets / 23,984 / 40,112 / 37,697 / 35,150 / 41,576
Total assets / 99,419 / 115,576 / 113,182 / 110,644 / 117,070
LIABILITIES
Payables
Suppliers / 8,925 / 8,925 / 8,925 / 8,925 / 8,925
Other payables / 4,614 / 4,643 / 4,664 / 4,673 / 4,673
Total payables / 13,539 / 13,568 / 13,589 / 13,598 / 13,598
Interest-bearing liabilities
Leases / 25 / 25 / 25 / 25 / 25
Total interest-bearing liabilities / 25 / 25 / 25 / 25 / 25
Provisions
Employee provisions / 21,044 / 21,044 / 21,044 / 21,044 / 21,044
Other provisions / 1,741 / 1,741 / 1,741 / 1,741 / 1,741
Total provisions / 22,785 / 22,785 / 22,785 / 22,785 / 22,785
Total liabilities / 36,349 / 36,378 / 36,399 / 36,408 / 36,408
Net assets / 63,070 / 79,198 / 76,783 / 74,236 / 80,662
EQUITY
Parent entity interest
Contributed equity / 38,715 / 61,133 / 65,008 / 69,001 / 80,757
Reserves / 13,409 / 13,409 / 13,409 / 13,409 / 13,409
Retained surplus (accumulated deficit) / 10,946 / 4,656 / (1,634) / (8,174) / (13,504)
Total parent entity interest / 63,070 / 79,198 / 76,783 / 74,236 / 80,662
Total equity / 63,070 / 79,198 / 76,783 / 74,236 / 80,662

Prepared on Australian Accounting Standards basis.

Table 3.3: Departmental statement of changes in equity—summary of movement (budget year 2016–17)

Retained earnings $’000 / Asset revaluation reserve $’000 / Contributed equity/
capital
$’000 / Total equity $’000
Opening balance as at 1 July 2016
Balance carried forward from previous period / 10,946 / 13,409 / 38,715 / 63,070
Adjustment for changes in accounting policies / – / – / – / –
Adjusted opening balance / 10,946 / 13,409 / 38,715 / 63,070
Comprehensive income
Surplus (deficit) for the period / (6,290) / – / – / (6,290)
Total comprehensive income / (6,290) / – / – / (6,290)
Of which:
Attributable to the Australian Government / (6,290) / – / – / (6,290)
Transactions with owners
Contributions by owners
Equity injection—appropriation / – / – / 18,343 / 18,343
Departmental capital budget / – / – / 4,075 / 4,075
Sub-total transactions with owners / – / – / 22,418 / 22,418
Estimated closing balance
as at 30 June 2017 / 4,656 / 13,409 / 61,133 / 79,198
Closing balance attributable to the
Australian Government / 4,656 / 13,409 / 61,133 / 79,198

Prepared on Australian Accounting Standards basis.

Table 3.4: Budgeted departmental statement of cash flows (for the period ended 30 June)

2015–16 Estimated actual $’000 / 2016–17 Budget $’000 / 2017–18 Forward estimate $’000 / 2018–19 Forward estimate $’000 / 2019–20 Forward estimate $’000
OPERATING ACTIVITIES
Cash received
Appropriations / 130,177 / 141,782 / 139,312 / 140,146 / 135,840
Sale of goods and rendering of services / 1,177 / 1,177 / 1,177 / 1,177 / 300
Total cash received / 131,354 / 142,959 / 140,489 / 141,323 / 136,140
Cash used
Employees / 106,051 / 114,182 / 112,468 / 112,821 / 104,352
Suppliers / 25,060 / 28,777 / 28,021 / 28,502 / 31,788
Total cash used / 131,111 / 142,959 / 140,489 / 141,323 / 136,140
Net cash from (used by) operating activities / 243 / – / – / – / –
INVESTING ACTIVITIES
Cash used
Purchase of property, plant and equipment and intangibles / 4,633 / 22,418 / 3,875 / 3,993 / 11,756
Total cash used / 4,633 / 22,418 / 3,875 / 3,993 / 11,756
Net cash from (used by) investing activities / (4,633) / (22,418) / (3,875) / (3,993) / (11,756)
FINANCING ACTIVITIES
Cash received
Contributed equity / 4,633 / 22,418 / 3,875 / 3,993 / 11,756
Total cash received / 4,633 / 22,418 / 3,875 / 3,993 / 11,756
Net cash from (used by) financing activities / 4,633 / 22,418 / 3,875 / 3,993 / 11,756
Net increase (decrease) in cash held / 243 / – / – / – / –
Cash and cash equivalents at the beginning of the reporting period / 564 / 807 / 807 / 807 / 807
Cash and cash equivalents at the end of the reporting period / 807 / 807 / 807 / 807 / 807

Prepared on Australian Accounting Standards basis.

Table 3.5: Departmental capital budget statement (for the period ended 30June)

2015–16 Estimated actual $’000 / 2016–17 Budget $’000 / 2017–18 Forward estimate $’000 / 2018–19 Forward estimate $’000 / 2019–20 Forward estimate $’000
NEW CAPITAL APPROPRIATIONS
Capital budget—Bill 1 (DCB) / 4,633 / 4,075 / 3,875 / 3,993 / 4,004
Equity injections—Bill 2 / – / 18,343 / – / – / 7,752
Total new capital appropriations / 4,633 / 22,418 / 3,875 / 3,993 / 11,756
Provided for:
Purchase of non-financial assets / (4,633) / (22,418) / (3,875) / (3,993) / (11,756)
Total items / (4,633) / (22,418) / (3,875) / (3,993) / (11,756)
PURCHASE OF NON-FINANCIAL ASSETS
Funded by capital appropriations(a) / – / 18,343 / – / – / 7,752
Funded by capital appropriation—DCB(b) / 4,633 / 4,075 / 3,875 / 3,993 / 4,004
Total purchases of non-financial assets / 4,633 / 22,418 / 3,875 / 3,993 / 11,756
RECONCILIATION OF CASH USED TO ACQUIRE ASSETS TO ASSET MOVEMENT TABLE
Total purchases / (4,633) / (22,418) / (3,875) / (3,993) / (11,756)
Total cash used to acquire assets / (4,633) / (22,418) / (3,875) / (3,993) / (11,756)

Prepared on Australian Accounting Standards basis.

DCB = departmental capital budget.

(a) Includes current Bill 2 and prior year Act 2, 4 and 6 appropriations and special capital appropriations.

(b) Does not include annual finance lease costs. Includes purchases from current and previous years’ DCBs.

Table 3.6: Statement of asset movements (budget year 2016–17)

Buildings $’000 / Other property, plant & equipment $’000 / Computer software & intangibles $’000 / Total
$’000
As at 1 July 2016
Gross book value / 14,998 / 6,559 / 8,435 / 29,992
Accumulated depreciation/amortisation and impairment / (1,206) / (1,318) / (4,159) / (6,683)
Opening net book balance / 13,792 / 5,241 / 4,276 / 23,309
CAPITAL ASSET ADDITIONS
Estimated expenditure on new or replacement assets
By purchase—appropriation ordinary annual services(a) / 18,693 / 2,629 / 1,096 / 22,418
Total additions / 18,693 / 2,629 / 1,096 / 22,418
Other movements
Depreciation/amortisation expense / (1,350) / (1,793) / (3,147) / (6,290)
Total other movements / (1,350) / (1,793) / (3,147) / (6,290)
As at 30 June 2017
Gross book value / 33,691 / 9,188 / 9,531 / 52,410
Accumulated depreciation/amortisation and impairment / (2,556) / (3,111) / (7,306) / (12,973)
Closing net book balance / 31,135 / 6,077 / 2,225 / 39,437

Prepared on Australian Accounting Standards basis.

(a) ‘Appropriation ordinary annual services’ refers to funding provided through Appropriation Bill (No. 1)
2016–17 for depreciation and amortisation expenses, departmental capital budgets or other operational expenses.

Table 3.7: Schedule of budgeted income and expenses administered on behalf of government (for the period ended 30 June)

2015–16 Estimated actual $’000 / 2016–17 Budget $’000 / 2017–18 Forward estimate $’000 / 2018–19 Forward estimate $’000 / 2019–20 Forward estimate $’000
EXPENSES
Write-down and impairment of assets / 2,600 / 2,600 / 2,600 / 2,600 / 2,600
Other expenses (refunds of revenue) / 6,400 / 6,400 / 6,400 / 6,400 / 6,400
Total expenses administered on behalf of government / 9,000 / 9,000 / 9,000 / 9,000 / 9,000
LESS:
OWN-SOURCE INCOME
Non-taxation revenue
Fees and fines / 28,392 / 28,361 / 28,361 / 25,961 / 25,961
Total non-taxation revenue / 28,392 / 28,361 / 28,361 / 25,961 / 25,961
Total own-source income administered on behalf of government / 28,392 / 28,361 / 28,361 / 25,961 / 25,961
Net cost of (contribution by) services / (19,392) / (19,361) / (19,361) / (16,961) / (16,961)
Surplus (deficit) / 19,392 / 19,361 / 19,361 / 16,961 / 16,961
Total comprehensive income (loss) / 19,392 / 19,361 / 19,361 / 16,961 / 16,961

Prepared on Australian Accounting Standards basis.

Table 3.8: Schedule of budgeted assets and liabilities administered on behalf of government (as at 30 June)

Prepared on Australian Accounting Standards basis.

Table 3.9: Schedule of budgeted administered cash flows (for the period ended 30 June)

2015–16 Estimated actual $’000 / 2016–17 Budget $’000 / 2017–18 Forward estimate $’000 / 2018–19 Forward estimate $’000 / 2019–20 Forward estimate $’000
OPERATING ACTIVITIES
Cash received
Application fees / 20,092 / 20,061 / 20,061 / 17,661 / 17,661
Total cash received / 20,092 / 20,061 / 20,061 / 17,661 / 17,661
Cash used
Refunds of application fees / 6,400 / 6,400 / 6,400 / 6,400 / 6,400
Total cash used / 6,400 / 6,400 / 6,400 / 6,400 / 6,400
Net cash from (used by) operating activities / 13,692 / 13,661 / 13,661 / 11,261 / 11,261
Net increase (decrease) in cash held / 13,692 / 13,661 / 13,661 / 11,261 / 11,261
Cash and cash equivalents at the beginning of the reporting period / 135 / 135 / 135 / 135 / 135
Cash from Official Public Account for:
Appropriations / 6,400 / 6,400 / 6,400 / 6,400 / 6,400
Cash to Official Public Account for:
Appropriations / (20,092) / (20,061) / (20,061) / (17,661) / (17,661)
Cash and cash equivalents at the end of the reporting period / 135 / 135 / 135 / 135 / 135

Prepared on Australian Accounting Standards basis.