Portfolio Additional Estimates Statements 2013-14 Finance Portfolio

Part C: Agency Additional Estimates Statements — Agency name

PORTFOLIO additional

ESTIMATES STATEMENTS 2013-14

FINANCE PORTFOLIO

Explanations of additional estimates 2013-14

Parliament House, Canberra ACT 2600 Telephone: (02) 6277 7400 ~ Facsimile: (02) 6273 4110

ISBN 978 176004-3551

This publication is available for your use under aCreative Commons BY Attribution 3.0 Australialicence, with the exception of the Commonwealth Coat of Arms, the Department of Finance (Finance) logo, photographs, images, signatures and where otherwise stated. The full licence terms are available from

Use of Finance material under aCreative Commons BY Attribution 3.0 Australialicence requires you to attribute the work (but not in any way that suggests that Financeendorses you or your use of the work).

Australian Government Department of Financematerial used 'as supplied'

Provided you have not modified or transformed Finance material in any way including, for example, by changing the Finance text; calculating percentage changes; graphing or charting data; or deriving new statistics from published Finance statistics – then Finance prefers the following attribution:

Source: The Australian GovernmentDepartment of Finance

Derivative material

If you have modified or transformed Finance material, or derived new material from those of Finance in any way, then Finance prefers the following attribution:

Based on The Australian Government Department of Financedata

Use of the Coat of Arms

The terms under which the Coat of Arms can be used are set out on the It’s an Honour website (see

Other Uses

Inquiries regarding this licence and any other use of this document are welcome at:

Email:

Printed by CanPrint Communications Pty Ltd

President of the Senate

Australian Senate

Parliament House

CANBERRA ACT 2600

Speaker

House of Representatives

Parliament House

CANBERRA ACT 2600

Dear Mr President and Madam Speaker

I hereby submit Portfolio Additional Estimates Statements in support of the 2013-14 Additional Estimates for the Finance 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, to the public.

Kind regards

Mathias Cormann

Minister for Finance

January 2014

Abbreviations and conventions

The following notations may be used:

NEC/necnot elsewhere classified

nil

..not zero, but rounded to zero

nanot applicable (unless otherwise specified)

nfpnot for publication

$m$ million

Figures in tables and in the text may be rounded. Figures in text are generally rounded to one decimal place, whereas figures in tables are generally rounded to the nearest thousand. Discrepancies in tables between totals and sums of components are due to rounding.

Enquiries

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

A copy of this document can be located on the Australian Government Budget website at:

User Guide
to the
Portfolio Additional
Estimate Statements

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 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 programmes supporting those outcomes.

The PAES facilitate understanding of the proposed appropriations in Appropriation Bills (No.3 & No.4) 2013-14. 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 (MYEFO) 2013-14 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 impact on Appropriation Bills No.3 & No.4 2013-14.
Section 2: Revisions to Outcomes and Planned Performance / This section details changes to Government outcomes and/or changes to the planned performance of agency 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.
Portfolio Glossary and Acronyms / Explains key terms relevant to the Portfolio.

Contents

Portfolio Overview...... 1

Agency Additional Estimates Statements

Department of Finance

Portfolio Glossary

Acronyms

Portfolio Overview

Finance Portfolio Overview

Machinery of Government Changes Affecting the Portfolio

On 18 September 2013an Administrative Arrangements Order (AAO) was issued by the Australian Government.

The new order changed the portfolio name from ‘Finance and Deregulation’ to ‘Finance’ (Finance portfolio).

In addition, the following function was transferred from the Department of Finance:

‘Reducing the burden of government regulation’transferred to the Department of the Prime Minister and Cabinet (PM&C);

No other changes have occurred that impact on the portfolio structure since the issue of the 2013-14 Portfolio Budget Statements (PB Statements).

Portfolio Overview

The Finance portfolio outcomes are represented in Figure 1 on page 4.

Additional Estimates and Variations – Portfolio Level

Additional estimates and variations are being sought by the Department of Finance (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, Commonwealth Superannuation Corporation, ComSuper and the Future Fund Management Agency remain unchanged.

Department of Finance

Finance is seeking net additional funding of $4.3 million in Appropriation BillNo.32013-14.

Finance is not seeking any additional funding in Appropriation Bill No.4 2013-14.

Finance’s administered special appropriation will increase by $937.1 million in 2013-14primarily due to revisions of superannuation estimates.

Figure 1: FinancePortfolio Structure and Outcomes

Portfolio Additional Resources

Table 1 shows for those agencies reporting in the PAESthe additional resourcesprovided to the portfolio in the 2013-14 budget year, by agency.

Table 1: Portfolio Additional Resources 2013-14

Appropriation / Receipts / Total
Bill No.3 / Bill No.4 / Special
$m / $m / $m / $m / $m
Department of Finance
Administered appropriations / - / - / 937 / (111) / 826
Departmental appropriations / 4 / - / - / - / 4
Total / 830
Australian Electoral
Commission
Administered appropriations / - / - / - / - / -
Departmental appropriations / - / - / - / - / -
Total / -
Commonwealth
Superannuation Corporation
Administered appropriations / - / - / - / - / -
Departmental appropriations / - / - / - / - / -
Total / -
ComSuper
Administered appropriations / - / - / - / - / -
Departmental appropriations / - / - / - / - / -
Total / -
Future Fund
Management Agency
Administered appropriations / - / - / - / - / -
Departmental appropriations / - / - / - / - / -
Total / -
Resources available within portfolio: / 830

Portfolio Overview

Agency Additional Estimates Statements

Department of Finance

Portfolio Overview

Department of Finance

Section 1: Agency Overview and Resources

1.1Strategic Direction

1.2Agency Resource Statement

1.3Agency Measures Table

1.4Additional Estimates and Variations

1.5Breakdown of Additional Estimates by Appropriation Bill

Section 2: Revisions to Agency Resources and Planned Performance

2.1Resources and Performance Information

Section 3: Explanatory Tables and Budgeted Financial Statements

3.1Explanatory Tables

3.2Budgeted Financial Statements

Portfolio Overview

Finance Additional Estimates Statements

Department of Finance

Section 1: Agency Overview and Resources

1.1Strategic Direction

As a result of the AAO issued on 18 September 2013, the Department of Finance (Finance) is no longer responsible for‘Reducing the burden of government regulation’.

This has been transferred to the Department of the Prime Minister and Cabinet (PM&C).

No other changes have occurred that impact on Finance’s Strategic Direction since the issue of the 2013-14 Portfolio Budget Statements (PBStatements).

1.2Agency 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 2013-14 Budget year, including variations through Appropriation Bill No.3 No.4 2013-14 and special appropriations (includingspecial accounts).

Table 1.1: Department of FinanceResource Statement — Additional Estimates for 2013-14as at Additional Estimates February2014

Estimates / Proposed / Total / Total
at Budget / + / Additional / = / Estimate / Available
Estimate / at Additional / Appropriation
Estimates
2013-14 / 2013-14 / 2013-14 / 2012-13
$'000 / $'000 / $'000 / $'000
Ordinary annual services 1
Departmental appropriation
Departmental appropriation 2 / 333,059 / 4,345 / 337,404 / 292,111
s31 relevant agency receipts 3 / 18,216 / - / 18,216 / 54,686
Total / 351,275 / 4,345 / 355,620 / 346,797
Administered expenses
Outcome 1 / 11,373 / - / 11,373 / 11,029
Outcome 2 / 712 / - / 712 / 680
Outcome 3 4 / 291,683 / - / 291,683 / 253,805
Total / 303,768 / - / 303,768 / 265,514
Total ordinary annual services / A / 655,043 / 4,345 / 659,388 / 612,311
Other services 5
Departmental non-operating
Equity injections / 318,393 / - / 318,393 / 154,455
Total / 318,393 / - / 318,393 / 154,455
Administered non-operating
Administered assets and liabilities / 8,967 / - / 8,967 / 11,822
Total / 8,967 / - / 8,967 / 11,822
Total other services / B / 327,360 / - / 327,360 / 166,277
Total available annual
appropriations / 982,403 / 4,345 / 986,748 / 778,588

Table continues on next page

Table 1.1:Department of Finance Resource Statement — Additional Estimates for 2013-14 as at Additional Estimates February 2014 (continued)

Estimates / Proposed / Total / Total
at Budget / + / Additional / = / Estimate / Available
Estimate / at Additional / Appropriation
Estimates
2013-14 / 2013-14 / 2013-14 / 2012-13
$'000 / $'000 / $'000 / $'000
Special appropriations
Special appropriations limited
by criteria/entitlement
Federal Circuit Court of
Australia Act 1999 / 675 / (120) / 555 / 236
Financial Management and
Accountability Act 1997 / - / - / - / 3,422
Governance of Australian
Government Superannuation
Schemes Act 2011 / 703 / 697 / 1,400 / 243
Governor-General Act 1974 / 6,148 / 787 / 6,935 / 1,213
Judges' Pensions Act 1968 / 77,200 / 5,500 / 82,700 / 40,742
Members of Parliament (Life
Gold Pass) Act 2002 / 3,215 / - / 3,215 / 2,643
Parliamentary Contributory
Superannuation Act 1948 / 53,493 / 2,747 / 56,240 / 35,701
Parliamentary Entitlements
Act 1990 / 165,506 / 6,778 / 172,284 / 160,793
Parliamentary Superannuation
Act 2004 / 4,968 / - / 4,968 / 4,462
Same-Sex Relationships
(Equal Treatment in
Commonwealth Laws -
Superannuation) Act 2008 / 54 / - / 54 / 56
Superannuation Act 1922 / 45,000 / (8,823) / 36,177 / 117,754
Superannuation Act 1976 / 3,338,601 / (225,922) / 3,112,679 / 3,967,312
Superannuation Act 1990 / 3,521,215 / 1,155,354 / 4,676,569 / 1,216,035

Table continues on next page

Table 1.1:Department of FinanceResource Statement — Additional Estimates for 2013-14 as at Additional Estimates February2014(continued)

Estimates / Proposed / Total / Total
at Budget / + / Additional / = / Estimate / Available
Estimate / at Additional / Appropriation
Estimates
2013-14 / 2013-14 / 2013-14 / 2012-13
$'000 / $'000 / $'000 / $'000
Special appropriations limited
by amount
Commonwealth of Australia
Constitution Act (s.66) / 4,719 / 108 / 4,827 / 4,763
Special appropriations limited
by capital
Special capital appropriations / 1,586,628 / - / 1,586,628 / 1,635,644
Total special appropriations / C / 8,808,125 / 937,106 / 9,745,231 / 7,191,019
Total appropriations excluding
special accounts / 9,790,528 / 941,451 / 10,731,979 / 7,969,607
Special accounts
Opening balance 6 / 510,527 / 36,807 / 547,334 / 526,710
Appropriation receipts / 62,749 / - / 62,749 / 65,263
Equity injection / 128,650 / - / 128,650 / 69,397
Non-appropriation receipts to
special accounts / 2,619,236 / (110,917) / 2,508,319 / 33,814,968
Total special accounts / D / 3,321,162 / (74,110) / 3,247,052 / 34,476,338
Total resourcing
A+B+C+D / 13,111,690 / 867,341 / 13,979,031 / 42,445,945
Less appropriations drawn from
annual or special appropriations above
and credited to special accounts / (191,399) / - / (191,399) / (134,660)
and/or CAC Act bodies through
annual appropriations
Total net resourcing for Finance / 12,920,291 / 867,341 / 13,787,632 / 42,311,285

Table continues on next page

1Appropriation Act (No. 1) 2013-14 and Appropriation Bill (No. 3) 2013-14, adjusted for FMA Act section 32 transfer.

2Includes an amount of $10.921m in 2013-14 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'.

3Section 31 relevant agency receipts — estimate.

4Includes an amount of $7.890m in 2013-14 for the administered capital budget (refer to table 3.2.10 for further details). For accounting purposes this amount has been designated as 'contributions by owners'.

5Appropriation Act (No. 2) 2013-14.

6Opening balances 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.

Note: All figures are GST exclusive.

Table 1.1: Department of Finance Resource Statement — Additional Estimates for 2013-14 as at Additional Estimates February2014(continued)

Third Party Payments from and on behalf of other agencies

Estimates at / Estimates at
Budget / Additional
Estimates
2013-14 / 2013-14
$'000 / $'000
Payments made on behalf of Finance
Attorney-General's Department
Parliamentary Entitlements Act 1990 / 300 / 900
ComSuper
Governance of Australian Government
Superannuation Schemes Act 2011 / 703 / 1,400
Same-Sex Relationships (Equal Treatment in
Commonwealth Laws - Superannuation) Act 2008 / 54 / 54
Superannuation Act 1922 / 45,000 / 36,177
Superannuation Act 1976 / 3,338,601 / 3,112,679
Superannuation Act 1990 / 3,521,215 / 4,676,569
Appropriation Act (No.1)1 / 500 / 500
Appropriation Act (No.1)2 / 651 / 651
Appropriation Act (No.2)2 / 507 / 507
Department of Defence
Parliamentary Entitlements Act 1990 / 4,900 / 4,900
Department of the House of Representatives
Commonwealth of Australia
Constitution Act (s.66) / 3,532 / 3,154
Parliamentary Entitlements Act 1990 / 450 / 450
Parliamentary Superannuation Act 2004 / 3,298 / 3,298
Department of Parliamentary Services
Parliamentary Entitlements Act 1990 / 13,877 / 17,278
Department of the Senate
Commonwealth of Australia
Constitution Act (s.66) / 1,187 / 1,673
Parliamentary Entitlements Act 1990 / 736 / 736
Parliamentary Superannuation Act 2004 / 1,670 / 1,670
Fair Work Commission
Judges' Pensions Act 1968 / 4,817 / 4,817
Payments made by Finance on behalf of other agencies
Attorney-General's Department
Law Officers Act 1964 / 404 / 404
Australian Security Intelligence Organisation
Appropriation Act (No.2) / 17,371 / 23,400

1Compensation and legal payments.

2Act of Grace payments.

1.3Agency Measures Table

Table 1.2 summarises new Government measures taken since the 2013-14 Budget. The table is split into expense and capital measures, with the affected programme identified.

Table 1.2: Department of Finance2013-14 Measures since Budget

Programme / 2013-14 / 2014-15 / 2015-16 / 2016-17
$'000 / $'000 / $'000 / $'000
Expense measures
Administered expenses
Payments to Animals Australia
Incorporated - discontinue / 2.1 / 34 / 35 / 35 / 36
Revert to Pre-2010 Non-Government
Personal Staffing Ratios / 3.1 / 839 / 1,728 / 1,728 / 1,728
Royal Commission into the Home
Insulation Programme 1 / 3.1 / (1,000) / - / - / -
Funding for pre-existing measures
affecting the public sector / nfp / nfp / - / -
Departmental expenses
Green Army - establishment 2 / 1.1 / (72) / - / - / -
National Commission of Audit / 1.1 / (1,000) / - / - / -
Restoring integrity in the Australian
tax system 3 / 1.2 / 505 / 945 / - / -
Total expense measures
Administered / (127) / 1,763 / 1,763 / 1,764
Departmental / (567) / 945 / - / -
Total / (694) / 2,708 / 1,763 / 1,764

Table continues on next page

Table 1.2: Department of Finance 2013-14 Measures since Budget (continued)

Programme / 2013-14 / 2014-15 / 2015-16 / 2016-17
$'000 / $'000 / $'000 / $'000
Capital measures
Departmental Capital
Restoring integrity in the Australian
tax system 3 / 1.2 / 195 / 1,155 / - / -
Urgent Maintenance Work for the
John Gorton Building - additional
funding / 2.2 / - / nfp / nfp / nfp
Total capital measures
Departmental / 195 / 1,155 / - / -
Total / 195 / 1,155 / - / -

Prepared on a Government Financial Statistics (fiscal) basis.

1The lead agency for the measure Royal Commission into the Home Insulation Programme is the AttorneyGeneral’s Department. Further information on this measure can be found in the 2013-14 Mid Year Economic and Fiscal Outlook under the Attorney-General’s portfolio.

2The lead agency for the measure Green Army – establishment is the Department of Environment. Further information on this measure can be found in the 2013-14 Mid Year Economic and Fiscal Outlook under the Environment portfolio.

3The lead agency for the measure Restoring integrity in the Australian tax system is the Department of the Treasury. Further information on this measure can be found in the 2013-14 Mid Year Economic and Fiscal Outlook under the Treasury portfolio.

1.4Additional Estimates and Variations

The following tables detail the changes to the resourcing for the Department of Finance at Additional Estimates, by outcome. Table 1.3 details the Additional Estimates and variations resulting from new measures since the 2013-14 Budget in Appropriation Bills Nos.3 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 2013-14 Budget

Programme / 2013-14 / 2014-15 / 2015-16 / 2016-17
impacted / $'000 / $'000 / $'000 / $'000
Outcome 1
Increase in estimates (D)
Green Army - establishment / 1.1 / 72 / - / - / -
National Commission of Audit / 1.1 / 1,000 / - / - / -
Decrease in estimates (D)
Restoring integrity in the Australian
tax system / 1.2 / (700) / (2,100) / - / -
Net impact on estimates
for Outcome 1 (D) / 372 / (2,100) / - / -
Outcome 2
Decrease in estimates (A)
Payments to Animals Australia
Incorporated - discontinue / 2.1 / (34) / (35) / (35) / (36)
Net impact on estimates
for Outcome 2 (A) / (34) / (35) / (35) / (36)
Outcome 3
Increase in estimates (A)
Royal Commission into the Home
Insulation Programme / 3.1 / 1,000 / - / - / -
Decrease in estimates (A)
Revert to Pre-2010 Non-Government
Personal Staffing Ratios / 3.1 / (839) / (1,728) / (1,728) / (1,728)
Net impact on estimates
for Outcome 3 (A) / 161 / (1,728) / (1,728) / (1,728)

(A) = Administered

(D) = Departmental

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

Programme / 2013-14 / 2014-15 / 2015-16 / 2016-17
impacted / $'000 / $'000 / $'000 / $'000
Outcome 1
Increase in estimates (A)
Superannuation estimates update / 1.2 / 930,220 / 868 / 767 / 1,366
Net impact on estimates
for Outcome 1 (A) / 930,220 / 868 / 767 / 1,366
Decrease in estimates (D)
Whole of Government Savings / (252) / (463) / (781) / (805)
Efficiency Dividend Update / - / (1,163) / (2,605) / (4,134)
Economic Parameter Update / - / (344) / (566) / (697)
Net impact on estimates
for Outcome 1 (D) / (252) / (1,970) / (3,952) / (5,636)
Outcome 2
Increase in estimates (A)
Economic Parameter Update / 1 / 1 / 2 / 2
Net impact on estimates
for Outcome 2 (A) / 1 / 1 / 2 / 2
Increase in estimates (D)
Moorebank Defence Units Relocation
- Movement of Funds / 2.1 / 2,839 / (15,598) / 15,993 / -
Decrease in estimates (D)
Transfer of Reliance Framework to
Department of Human Services / 2.1 / (220) / (220) / (220) / (220)
Whole of Government Savings / (84) / (154) / (260) / (269)
Efficiency Dividend Update / - / (399) / (895) / (1,419)
Economic Parameter Update / - / (108) / (175) / (218)
Net impact on estimates
for Outcome 2 (D) / 2,535 / (16,479) / 14,443 / (2,126)

Table continues on next page

Table 1.4: Additional Estimates and Variations to Outcomes from Other Variations (continued)

Programme / 2013-14 / 2014-15 / 2015-16 / 2016-17
impacted / $'000 / $'000 / $'000 / $'000
Outcome 3
Increase in estimates (A)
Adjustment to Travel Allowance
for MOP(S) Act Staff / 3.1 / 159 / 191 / 191 / 191
Adjustment to Travel Allowance
for Senators and Members / 3.1 / 115 / 138 / 138 / 138
Increase Salary for Ministers of
State / 3.1 / 108 / 106 / 106 / 106
Smartphone entitlement reform / 3.1 / 1,114 / 631 / 652 / 675
Lease Payout - Sydney
Commonwealth Parliament
Office / 3.1 / 4,889 / - / - / -
Retention of copy printers / 3.1 / 115 / 117 / 120 / 122
Adjustments to personal staff
following 2013 election / 3.1 / (195) / 1,151 / 1,151 / 1,151
Decrease in estimates (A)
Economic Parameter Update / - / (444) / (935) / (952)
Net impact on estimates
for Outcome 3 (A) / 6,305 / 1,890 / 1,423 / 1,431
Decrease in estimates (D)
Whole of Government Savings / (84) / (154) / (260) / (269)
Efficiency Dividend Update / - / (387) / (869) / (1,378)
Economic Parameter Update / - / (108) / (179) / (220)
Net impact on estimates
for Outcome 3 (D) / (84) / (649) / (1,308) / (1,867)

(A) = Administered

(D) = Departmental

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

1.5Breakdown of Additional Estimates by Appropriation Bill

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

Table 1.5: Appropriation Bill (No. 3) 2013-14

2012-13 / 2013-14 / 2013-14 / Additional / Reduced
Available / Budget / Revised / Estimates / Estimates
$'000 / $'000 / $'000 / $'000 / $'000
ADMINISTERED ITEMS
Outcome 1
Informed decisions on Government
finances and regulatory practices
through: policy advice; implementing
frameworks; and providing
financial advice, guidance
and assurance. / 11,022 / 11,373 / 11,373 / - / -
Outcome 2
Effective Government policy advice,
administration and operations
through: oversight of Government
Business Enterprises;
Commonwealth property management
and construction; risk management;
and providing ICT services. / 680 / 712 / 712 / - / -
Outcome 3
Support for Parliamentarians, others
with entitlements and organisations
as approved by Government through
the delivery of entitlements and
targeted assistance. / 250,124 / 291,683 / 291,683 / - / -
Total / 261,826 / 303,768 / 303,768 / - / -

Table continues on next page