Office of Parliamentary Counsel

Office of Parliamentary Counsel

Section 1: Agency overview and resources

1.1 Strategic direction statement

The Office of Parliamentary Counsel (OPC) was established by the Parliamentary Counsel Act 1970. The role of OPC is to assist the Australian Government to carry out its legislative drafting program and, subject to government priorities, assist private members with their legislative requirements. OPC does not interpret, nor does it provide advice on, Commonwealth legislation.

OPC drafts Bills and amendments of Bills and arranges supply of bulk copies of Bills and amendments to the Commonwealth Parliament. OPC has a role in arranging for Bills passed by both Houses of Parliament to be assented to by the Governor-General.

OPC maintains a high standard of legislative drafting capability, in particular by providing substantial drafting training to its employees and by engaging in continuous improvement of drafting techniques. OPC also maintains standardised drafting and formatting practices for Bills and amendments, to ensure consistency in both the content and the form of the statute book. OPC encourages a high standard of legislative drafting proposals by providing advice to other agencies on legislative projects and by training staff of policy agencies who might be responsible for giving drafting instructions to OPC.

OPC is continuing to respond to the increased legislative drafting requirements arising from the Council of Australian Governments (COAG) and Standing Committee on Law and Justice (SCLJ) initiatives and the government’s taxation reform agenda. The funding from these prior year measures will be used to provide additional drafting resources:

•  for the increased tax drafting demands from the taxation reform agenda, and to continue to support drafting capacity to meet the government’s commitments for timely consultation on all substantive tax changes, and

•  for both the initial legislative drafting and ongoing maintenance of the legislation arising from the COAG and SCLJ initiatives.

The legislative drafting and publishing functions in the Attorney-General’s Department will be transferred to OPC. The date of the transfer is anticipated to be 1July 2012, subject to the passage of enabling legislation and other arrangements between the Attorney-General’s Department and OPC being in place. The associated funding transfer will be made under section 32 of the Financial Management and Accountability Act 1997 and is not included in these statements.

1.2 Agency resource statement

Table 1.1 shows the total resources from all sources.

Table 1.1: Agency resource statement—Budget estimates for 2012–13 as at Budget May 2012

Estimate of
prior year / Actual
amounts / + / Proposed / = / Total / available
available in / at Budget / estimate / appropriation
2012–13 / 2012–13 / 2012–13 / 2011–12
$’000 / $’000 / $’000 / $’000
ORDINARY ANNUAL SERVICES1
Departmental appropriation
Prior year departmental
appropriation2 / 5,007 / – / 5,007 / 5,555
Departmental appropriation3 / – / 11,114 / 11,114 / 11,627
s 31 relevant agency receipts4 / – / – / 89 / 86
Total ordinary annual services / 5,007 / 11,114 / 16,121 / 17,268
Total available annual
appropriations / 5,007 / 11,114 / 16,121 / 17,268
Total net resourcing for agency / 5,007 / 11,114 / 16,121 / 17,268

All figures are GST exclusive.

1. Appropriation Bill (No. 1) 2012–13.

2. Estimated adjusted balance carried forward from previous year.

3. Includes an amount of $0.279m in 2012–13 for the departmental capital budget (see Table3.2.5 for further details). For accounting purposes this amount has been designated as ‘contributions by owners’.

4. Section 31 relevant agency receipts—estimate.

1.3 Budget measures

Table 1.2: Measures announced between 2011–12 Budget and 2012–13 Budget but not yet reported in a subsequent portfolio statement

2011–12 / 2012–13 / 2013–14 / 2014–15 / 2015–16
Program / $’000 / $’000 / $’000 / $’000 / $’000
Expense measures
Reducing the cost of government administration—one-off efficiency dividend / 1.1
Departmental expenses / – / (278) / (279) / (254) / (256)
Total expense measures / – / (278) / (279) / (254) / (256)
Capital measures
Departmental capital budgets—savings / 1.1
Departmental capital / – / (130) / (42) / (66) / (67)
Total capital measures / – / (130) / (42) / (66) / (67)

Prepared on a Government Finance Statistics (fiscal) basis.

Section 2: Outcomes and planned performance

2.1 Outcomes and performance information

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 agencies achieve the intended results of their outcome statements. Agencies are required to identify the programs that contribute to government outcomes over the budget and forward years.

OPC’s outcome is described below together with its related program, specifying the performance indicators and targets used to assess and monitor the performance of OPC in achieving government outcomes.

Outcome 1: Laws that give legal effect to the intended policy and form a coherent and readable body of Commonwealth legislation through the –drafting of Bills and amendments for passage by the Commonwealth Parliament
Outcome 1 strategy

OPC contributes to meeting this outcome by:

•  providing draft legislation that represents the proposals of the executive government in a form that makes them available for scrutiny, and approval or rejection, by the parliament

•  providing draft legislation that is comprehensible, workable and legally effective

•  providing draft legislation that is consistent in approach to matters such as layout, formatting and basic drafting issues, and

•  training lawyers recruited to OPC in the substantial body of legislative drafting knowledge and expertise that has been developed.

Outcome 1 expense statement

Table 2.1 provides an overview of the total expenses for Outcome 1, by program.

Table 2.1: Budgeted expenses for Outcome 1

Outcome 1: Laws that give legal effect to the intended
policy and form a coherent and readable body of Commonwealth legislation through the drafting of Bills and amendments for passage by the Commonwealth Parliament / 2011–12
Estimated / 2012–13
actual / Estimated
expenses / expenses
$’000 / $’000
Program 1.1: Legislative drafting
Departmental expenses
Departmental appropriation1 / 11,383 / 10,924
Expenses not requiring appropriation in the budget year2 / 410 / 392
Total expenses for Outcome 1 / 11,793 / 11,316
2011–12 / 2012–13
Average staffing level (number) / 49 / 52

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

1. Departmental appropriation combines ‘Ordinary annual services (Appropriation Bill No. 1)’ and ‘Revenue from independent sources (s31)’.

2. Expenses not requiring appropriation in the budget year are made up of depreciation and amortisation expenses of $0.368m and resources received free of charge (ANAO audit fees) of $0.024m.

Contributions to Outcome 1
Program 1.1: Legislative drafting
Program 1.1 objective
To enable the government to carry out its legislative program and, subject to government priorities, to assist private members with their legislative requirements, by drafting Bills and amendments of Bills and supplying them to the parliament.
Program 1.1 expenses
The decrease in total program expenses for 2012–13 and the forward years is due to reductions in ongoing funding as a result of the one-off 2.5% increase in the efficiency dividend, the savings measure associated with increased efficiency in Commonwealth property management, and the end of funding for the 2010–11 budget measure for additional drafting resources to support the government’s taxation reform agenda.
2011–12 / 2013–14 / 2014–15 / 2015–16
Revised / 2012–13 / Forward / Forward / Forward
budget / Budget / year 1 / year 2 / year 3
$’000 / $’000 / $’000 / $’000 / $’000
Annual departmental expenses
Legislation / 7,627 / 7,319 / 7,325 / 6,668 / 6,734
Program and project management / 683 / 655 / 656 / 597 / 603
Legislative drafting capability / 1,935 / 1,857 / 1,859 / 1,692 / 1,709
Standardisation and quality control of
legislation / 1,138 / 1,093 / 1,093 / 995 / 1,004
Expenses not requiring appropriation in
the budget year1 / 410 / 392 / 412 / 403 / 401
Total program expenses / 11,793 / 11,316 / 11,345 / 10,355 / 10,451

1. Expenses not requiring appropriation in the budget year are made up of depreciation and amortisation expenses and resources received free of charge (ANAO audit fees).

Program 1.1 deliverables
Legislation
•  Bills are drafted in accordance with government priorities, and supplied to parliament in accordance with applicable deadlines.
•  Bills reflect sponsors’ policy intentions and are legally effective.
Program and project management
•  Drafting work is allocated in accordance with the priorities set by the Parliamentary Business Committee, and legislative projects are managed, so as to make optimum use of drafting resources.
Legislative drafting capability
•  Lawyers recruited to OPC are trained in legislative drafting, to ensure the
long-term viability of drafting resources.
•  Potential instructors are trained in policy development and preparation of instructions, to ensure efficient use of drafting resources and quality of Bills.
•  Legislative drafters maintain and improve drafting skills and knowledge.
Standardisation and quality control of legislation
•  Drafting standards and conventions are applied consistently to all Bills.
•  A Statute Law Revision Bill is prepared to correct technical errors and to remove Acts that no longer have any operation.
2011–12 / 2013–14 / 2014–15 / 2015–16
Revised / 2012–13 / Forward / Forward / Forward
Deliverables / budget / Budget / year 1 / year 2 / year 3
Average rating (rating scale 1–5) received on client survey forms for overall satisfaction with the drafting process and draft Bill / ≥4 / ≥4 / ≥4 / ≥4 / ≥4
Number of legislation process courses conducted during the year / ≥10 / ≥10 / ≥10 / ≥10 / ≥10
Program 1.1 key performance indicators
Legislation—availability of Bills for parliamentary consideration
•  Bills are drafted in accordance with government priorities, and supplied to parliament in accordance with applicable deadlines.
•  Private members’ Bills are drafted where resources permit.
•  Bills reflect sponsors’ policy intentions and are legally effective.
Standardisation and quality control of legislation—condition of statute book
•  Drafting standards and conventions are applied consistently to all Bills.
2011–12 / 2012–13 / 2013–14 / 2014–15 / 2015–16
Revised / Budget / Forward / Forward / Forward
Key performance indicators / budget / target / year 1 / year 2 / year 3
Proportion of client surveys that indicate Bills reflect sponsors’ policy intentions and are legally effective / 100% / 100% / 100% / 100% / 100%
Proportion of Bills where drafting standards and conventions are applied consistently / 100% / 100% / 100% / 100% / 100%

Section 3: Explanatory tables and budgeted financial statements

Section 3 presents explanatory tables and budgeted financial statements which provide a comprehensive snapshot of agency finances for the 2012–13 budget year. It explains how budget plans are incorporated into the financial statements and provides further details of the reconciliation between appropriations and program expenses.

3.1 Explanatory tables

3.1.1 Movement of administered funds between years

OPC has no administered funds.

3.1.2 Special accounts

OPC has no special accounts.

3.1.3 Australian Government Indigenous expenditure

OPC has no Indigenous-specific expenses.

3.2 Budgeted financial statements

3.2.1 Differences in agency resourcing and financial statements

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

3.2.2 Analysis of budgeted financial statements
Income statement

OPC is budgeting for a small deficit attributable to the Australian Government in 2012–13 and for the forward years. The amount of the deficit for each year is the amount of depreciation and amortisation expenses.

In 2012–13, OPC will receive further appropriation funding for the 2009–10 budget measure for increased drafting demands arising from the COAG and SCLJ initiatives. This establishes a new base level of funding for this ongoing measure. OPC will also receive further appropriation funding for the 2010–11 budget measure for additional drafting resources to support the government’s taxation reform agenda.

The decrease in appropriation funding in 2012–13 is due to the one-off 2.5% increase in the efficiency dividend and the savings measure associated with increased efficiency in Commonwealth property management. The decrease in appropriation funding in 2014–15 is due to the end of funding for the 2010–11 budget measure relating to the government’s taxation reform agenda.

Balance sheet

For 2011–12, financial assets represent 82% of total assets. These funds have been set aside for repayment of employee liabilities as and when they fall due.

OPC’s primary liability continues to be accrued employee entitlements. For 2012–13, the estimated liability of $3.378m represents 79% of total liabilities.

3.2.3 Budgeted financial statements tables

Table 3.2.1: Comprehensive income statement (showing net cost of services)
(for the period ended 30June)

Estimated / Budget / Forward / Forward / Forward
actual / estimate / estimate / estimate / estimate
2011–12 / 2012–13 / 2013–14 / 2014–15 / 2015–16
$’000 / $’000 / $’000 / $’000 / $’000
EXPENSES
Employee benefits / 9,283 / 8,863 / 8,923 / 7,996 / 8,053
Supplier expenses / 2,124 / 2,085 / 2,034 / 1,980 / 2,021
Depreciation and amortisation / 386 / 368 / 388 / 379 / 377
Total expenses / 11,793 / 11,316 / 11,345 / 10,355 / 10,451
LESS:
OWN-SOURCE INCOME
Own-source revenue
Sale of goods and rendering of services / 91 / 89 / 81 / 85 / 86
Other / 4 / – / – / – / –
Total own-source revenue / 95 / 89 / 81 / 85 / 86
Gains
Other / 24 / 24 / 24 / 24 / 24
Total gains / 24 / 24 / 24 / 24 / 24
Total own-source income / 119 / 113 / 105 / 109 / 110
Net cost of (contribution by)
services / 11,674 / 11,203 / 11,240 / 10,246 / 10,341
Revenue from government / 11,288 / 10,835 / 10,852 / 9,867 / 9,964
Surplus (deficit) attributable to
the Australian Government / (386) / (368) / (388) / (379) / (377)
OTHER COMPREHENSIVE INCOME
Changes in asset revaluation surplus / – / – / – / – / –
Total other comprehensive income / – / – / – / – / –
Total comprehensive income (loss) / (386) / (368) / (388) / (379) / (377)
Total comprehensive income (loss)
attributable to the Australian
Government / (386) / (368) / (388) / (379) / (377)
Note: Impact of net cash appropriation arrangements
2011–12 / 2012–13 / 2013–14 / 2014–15 / 2015–16
$’000 / $’000 / $’000 / $’000 / $’000
Total comprehensive income (loss)
less depreciation/amortisation
expenses previously funded through
revenue appropriations / – / – / – / – / –
Plus depreciation/amortisation expenses
previously funded through revenue
appropriations1 / (386) / (368) / (388) / (379) / (377)
Total comprehensive income (loss)
as per the statement of
comprehensive income / (386) / (368) / (388) / (379) / (377)

Prepared on Australian Accounting Standards basis.