Part C: Agency Additional Estimates Statements — Agency name

PORTFOLIO additional

ESTIMATES STATEMENTS 201112

Finance and deregulation PORTFOLIO

Explanations of additional estimates 201112

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ISBN 978 1743 02 6786

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The details of the relevant licence conditions are available on the Creative Commons website (accessible using the links provided) as is the full legal code for the CC BY 3.0 AU licence (http://creativecommons.org/licenses/by/3.0/au/legalcode).

The document must be attributed as the Finance and Deregulation Portfolio Additional Estimates Statements 2011-12.

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FYSHWICK ACT 2609

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
201112Additional Estimates for the Finance and Deregulation 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

Penny Wong

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nfp not for publication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 expressed in $million rounded to one decimal place, whereas figures in tables are generally rounded to the nearest thousand. Discrepancies in tables between totals and sums of components are due to rounding.

Enquiries

Should you have any enquiries regarding this publication please contact
Michael Burton, Chief Financial Officer in the Department of Finance and Deregulation on (02) 6215 2222.

A copy of this document can be located on the Australian Government Budget website at: http://www.budget.gov.au.

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User Guide
to the
Portfolio Additional
Estimates Statements

59

User Guide

The purpose of the Portfolio Additional Estimates Statements (PAES), like that of the Portfolio Budget Statements (PB Statements), is to inform Senators and Members of Parliament and the public of the proposed allocation of resources to Government outcomes by agencies within the portfolio. The focus of the PAES differs from the PB Statements in one important aspect. While the PAES include an Agency Resource Statement to inform Parliament of the revised estimate of the total resources available to an agency, 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 nonfinancial planned performance of programs supporting those outcomes.

The PAES facilitate understanding of the proposed appropriations in Appropriation Bills (No. 3 and No. 4) 201112. In this sense the PAES is declared by the Additional Estimates Appropriation Bills to be a ‘relevant document’ to the interpretation of the Bills according to section 15AB of the Acts Interpretation Act 1901.

Whereas the MidYear Economic and Fiscal Outlook 201112 is a midyear 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 agencies within the portfolio.

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 agencies in the portfolio.
Agency additional estimates statements
A statement (under the name of the agency) for each agency affected by Additional Estimates.
Section 1: Agency overview and resources / This section details the total resources available to an agency, the impact of any measures since Budget, and their impact on Appropriation Bills No. 3 and No. 4.
Section 2: Revisions to outcomes and planned performance / This section details changes to Government outcomes and/or changes to the planned performance of agency programs.
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.
Glossary / Explains key terms relevant to the Portfolio.

Contents

Portfolio Overview 3

Agency Additional Estimates Statements 7

Department of Finance and Deregulation 9

Glossary and Acronyms 57

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Portfolio Overview

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Portfolio Overview

Portfolio Overview

Portfolio Overview

There has been one significant change to the portfolio to that described in the
2011-12 Portfolio Budget Statements.

The Commonwealth Superannuation Corporation (CSC) was established when the Governance of Australian Government Superannuation Schemes Act 2011 merged the Australian Reward Investment Alliance (ARIA), the Military Superannuation and Benefits Board and the Defence Force Retirement and Death Benefits Authority, to form a single trustee body with effect from 1 July 2011.

The Finance and Deregulation portfolio outcomes are represented in Figure 1 on
page 5.

Additional Estimates and Variations – Portfolio Level

Additional estimates and variations are being sought for the Department of Finance and Deregulation (Finance). These are detailed in the respective statements later in this document, with a brief outline of the changes summarised below.

Funding for the other agencies within the portfolio, being the Australian Electoral Commission, the Commonwealth Superannuation Corporation, ComSuper and the Future Fund Management Agency, remains unchanged.

Department of Finance and Deregulation

Finance is seeking net additional funding of $0.8 million in Appropriation Bill No. 3. Finance’s administered special appropriation will increase by $172.3 million in
2011-12.

Key net additional funding on a fiscal balance basis is as follows:

·  The Government will provide $0.1 million in 2011-12 (a total of $0.4 million over four years) to conduct Gateway reviews of the establishment and operation of the Government’s Clean Energy Regulator; and

·  Flowing from the Remuneration Tribunal’s determination 2011/16 to increase travel allowance for Senators and Members, the Government will provide $0.3million in 2011-12 (a total of $1.2 million over four years) to increase travel allowance for staff employed under the Members of Parliament (Staff) Act 1984 (MOP(S) Act).

·  The Government will provide $0.3 million to meet the costs of a 2011 Christmas shutdown for MOP(S) Act staff.

In addition, since the 2010-11 PB Statements, the Electorate Office IT function has been transferred to the Department of Parliamentary Services.


Figure 1: Finance and Deregulation portfolio structure and outcomes

Portfolio additional resources

Table 1 shows for those agencies reporting in the Portfolio Additional Estimates Statements the additional resources provided to the portfolio in the 201112 budget year, by agency.

Table 1: Portfolio Additional Resources 201112

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Portfolio Overview

Agency Additional Estimates Statements

Department of Finance and Deregulation 9

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Portfolio Overview

Department of Finance and Deregulation

Section 1: Agency Overview and Resources 11

1.1 Strategic Direction 11

1.2 Agency Resource Statement 11

1.3 Agency Measures Table 15

1.4 Additional Estimates and Variations 16

1.5 Breakdown of Additional Estimates by Appropriation Bill 18

Section 2: Revisions to Agency Outcomes and Planned Performance 20

2.1 Resources and Performance Information 20

Section 3: Explanatory Tables and Budgeted Financial Statements 36

3.1 Explanatory Tables 36

3.2 Budgeted Financial Statements 41

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Finance Additional Estimates Statements

Department of Finance and Deregulation

Section 1: Agency Overview and Resources

1.1 Strategic Direction

A full outline of the Department of Finance and Deregulation’s (Finance) Strategic Direction can be found in the 201112PBStatements.

1.2 Agency Resource Statement

The Agency Resource Statement details the resourcing for Finance at Additional Estimates. Table 1.1 outlines the total resourcing available from all sources for the 201112 Budget year, including variations through Appropriation Bills No. 3 and No. 4, special appropriations and special accounts.


Table 1.1: Department of Finance and Deregulation Resource Statement — Additional Estimates for 201112 as at Additional Estimates February 2012


Table 1.1: Department of Finance and Deregulation Resource Statement — Additional Estimates for 201112 as at Additional Estimates February 2012 (continued)

Reader note: All figures are GST exclusive.

1.  Appropriation Bills (No.1 & 3) 201112.

2.  Includes an amount of $16.631m in 201112 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'. Also included is an amount of $0.353m as departmental supplementation.

3.  Section 31 Relevant Agency receipts — estimate.

4.  Includes an amount of $3.320m for the Administered Capital Budget (refer to table 3.2.10 for further information).

5.  Appropriation Bills (No.2 & 4) 2010-11.

6.  Actual opening balance for special accounts (less ‘Special Public Money’ held in accounts like Other Trust Monies (OTM) and Services for other Government and Nonagency Bodies (SOG) accounts). For further information on special accounts see Table 3.1.1.


Table 1.1: Department of Finance and Deregulation Resource Statement — Additional Estimates for 201112 as at Additional Estimates February 2012 (continued)

Third Party Drawdowns from and on behalf of other agencies

1.  Compensation and Legal Payments

2.  Acts of Grace Payments

1.3 Agency Measures Table

Table 1.2 summarises new Government measures taken since the 201112 Budget. The table is split into revenue, expense and capital measures, with the affected program identified.

Table 1.2: Agency 201112 Measures since Budget

Note: This table has been prepared on a Government Financial Statistics (fiscal) basis. A positive amount indicates an improvement to fiscal balance while a negative amount indicates a worsening of fiscal balance.

1.  The lead agency for the measure Clean Energy Future – Governance – Clean Energy Regulator is the Department of Climate Change and Energy Efficiency. The full measure description and package details appear in the Mid Year Economic and Fiscal Outlook under the Climate Change and Energy Efficiency Portfolio.

2.  The measure Reducing the cost of Government administration – one-off efficiency dividend is a cross portfolio measure. The full measure description and package details appear in the Mid Year Economic and Fiscal Outlook as a cross portfolio measure.

3.  The measure Departmental Capital Budgets - Savings is a cross portfolio measure. The full measure description and package details appear in the Mid Year Economic and Fiscal Outlook as a cross portfolio measure.

1.4 Additional Estimates and Variations

The following tables detail the changes to the resourcing for Finance at Additional Estimates, by outcome. Table 1.3 details the Additional Estimates and Variations resulting from new measures since the 201112 Budget in Appropriation Bills No. 3 and No. 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 201112 Budget

Note: This table has been prepared on an appropriation basis. A positive amount indicates an increase to Finance’s appropriations while a negative amount indicates a decrease to Finance’s appropriations.


Table 1.4: Additional Estimates and Variations to Outcomes from Other Variations

Note: This table has been prepared on an appropriation basis. A positive amount indicates an increase to Finance’s appropriations while a negative amount indicates a decrease to Finance’s appropriations.

1.5 Breakdown of Additional Estimates by Appropriation Bill

The following tables detail the Additional Estimates sought for Finance through Appropriation Bills No. 3 and No. 4.

Table 1.5: Appropriation Bill (No. 3) 201112

Table 1.5: Appropriation Bill (No. 3) 201112 (continued)

Table 1.6: Appropriation Bill (No. 4) 201112

This table is not required as Finance is not seeking any additional estimates through Appropriation Bill (No. 4) 2011-12.

Section 2: Revisions to Agency Resources and Planned Performance

2.1 Resources and Performance Information

No changes have been made to Finance’s outcome structure since the 201112PBStatements. Changes to programs from Additional Estimates are detailed on pages 21-35. Complete details of Finance’s outcomes and performance information can be found in the 2011-12 PB Statements.

Outcome 1

Outcome 1 Strategy

No changes have been made to this outcome strategy since the 2011-12 PB Statements.

Table 2.1.1 Budgeted Expenses for Outcome 1

Table 2.1.1 Budgeted Expenses for Outcome 1 (continued)

1.  Departmental Appropriation combines ‘Ordinary annual services’ (Appropriation Bills No.1 and 3) and ‘Revenue from Independent Sources (s31)’.

2.  Expenses not requiring appropriation in the Budget year is made up of Depreciation Expense, Amortisation Expense, and Resources Received Free of Charge.

3.  Expense estimates for this act are zero. The estimate of $1,992k identified for this act in table 1.1 relates to an equity payment.

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

Contributions to Outcome 1
Program 1.1: Budget, Financial Management and Deregulation
Program 1.1 Objective
·  No changes have been made to the Program Objective since the
2011-12 PB Statements.

Program 1.1: Budget, Financial Management and Deregulation

1.  Expenses not requiring appropriation in the Budget Year is made up of Depreciation Expense, Amortisation Expense and Resources Received Free of Charge.

Program 1.1 Deliverables
·  No changes have been made to the Program Deliverables since the
201112PB Statements.
Program 1.1 Key Performance Indicators
·  No changes have been made to the Program Key Performance Indicators since the 201112 PB Statements.
Program 1.2: Public Sector Superannuation
Program Objective
·  No changes have been made to the Program Objective since the 2011-12 PB Statements.
·  From 1 July 2011, Commonwealth Superannuation Corporation (CSC) became the trustee responsible for the main civilian and military superannuation schemes, including the Public Sector Superannuation Accumulation Plan, the Public Sector Superannuation Scheme and the Commonwealth Superannuation Scheme. These schemes were formerly the responsibility of the Australian Reward Investment Alliance (ARIA).
·  With the establishment of CSC (and abolition of ARIA), the objective of this program is no longer linked to ARIA, rather it is now linked to CSC.

Program 1.2: Public Sector Superannuation