Portfolioadditional Estimates Statements 2015 16

PortfolioAdditional
Estimates Statements 2015–16

Employment Portfolio

Explanations of Additional Estimates 2015–16

1

© Commonwealth of Australia 2016

ISSN 2203–2991 (print)
ISSN 2203–3009 (online)

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 Employment logo, photographs, images, signatures and where otherwise stated. The full licence terms are available from

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

Department of Employmentmaterial used 'as supplied'

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

Source: The Australian GovernmentDepartment of Employment

Derivative material

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

Based on The Australian Government Department of Employmentdata

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:
Department of Employment on 1300488064

Senator the Hon Michelia Cash

Minister for Employment

Minister for Women

Minister Assisting the Prime Minister for the Public Service

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

Employment Portfolio Additional Estimates Statements 2015-16

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

(signed)

Senator the Hon Michelia Cash

Parliament House Canberra ACT 2600 Telephone (02) 6277 7320 Fax (02) 6273 4115

1

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 Glen Casson, Chief Finance Officer in the Department of Employment on 1300488064.

Links to Portfolio Budget Statements (including Portfolio Additional Estimates Statements and Portfolio Supplementary Additional Estimates Statements) can be located on the Australian Government Budget website at

1

User guide
to the
Portfolio Additional
Estimates Statements

1

User Guide

The purpose of the 2015–16 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 entities within the portfolio. The focus of the PAES differs from the PB 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 section 15AB of the Acts Interpretation Act 1901.

Whereas the Mid-Year Economic and Fiscal Outlook (MYEFO) 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.

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.

1

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 ofAppropriation Bills Nos. 3 and 4.

1

1

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.

1

1

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.

1

Contents

Portfolio overview...... 1

Department of Employment...... 7

1

Portfolio Overview

Portfoliooverview

There have been no significant changes to the portfolio as described in the
2015–16 Portfolio Budget Statements.

A full outline of the Employment portfolio can be found at Figure 1.

The Portfolio Additional Estimates Statements (PAES) provides information on variations since the Budget for the Portfolio’s Commonwealth entities who are seeking additional appropriations through Appropriation Bills No. 3 and No. 4. For the
2015–16 PAES, variations relate only to the Department of Employment (theDepartment).

Figure 1: Employment portfolio structure and outcomes

Senator the Hon Michaelia Cash, Minister for Employment

Department of Employment

Renée Leon PSM, Secretary

Outcome 1

Foster a productive and competitive labour market through employment policies and programmes that assist job seekers into work, meet employer needs and increase Australia’s workforce participation.

Outcome 2

Facilitate jobs growth through policies that promote fair, productive and safe workplaces.

Asbestos Safety and Eradication Agency

Peter Tighe, Chief Executive Officer

Outcome

Assist in the prevention of exposure to asbestos fibres and the elimination of asbestos-related disease in Australia through implementing the National Strategic Plan for Asbestos Awareness and Management in Australia.

Comcare, the Safety, Rehabilitation and Compensation Commission, and the Seafarers Safety, Rehabilitation and Compensation Authority

Jennifer Taylor, Chief Executive Officer

Outcome

Supporting participation and productivity through healthy and safe workplaces that minimise the impact of harm in workplaces covered by Comcare.

Fair Work Commission

Bernadette O’Neill, General Manager

Outcome

Simple, fair and flexible workplace relations for employees and employers through the exercise of powers to set and vary minimum wages and modern staff awards, facilitate collective bargaining, approve agreements and deal with disputes.

Figure 1: Employment portfolio structure and outcomes (continued)

Fair Work Ombudsman

Natalie James, Ombudsman

Outcome

Compliance with workplace relations legislation by employees and employers through advice, education and, where necessary, enforcement.

Office of the Fair Work Building Industry Inspectorate

Nigel HadgkissAPM, Director

Outcome

Enforce workplace relations laws in the building and construction industry and ensure compliance with those laws by all participants in the building and construction industry through the provision of education, assistance and advice.

Safe Work Australia

Michelle Baxter, Chief Executive Officer

Outcome

Healthier, safer and more productive workplaces through improvements to Australian work health and safety and workers’ compensation arrangements.

Workplace Gender Equality Agency

Libby Lyons, Director

Outcome

Promote and improve gender equality in Australian workplaces including the provision of advice and assistance to employers and the assessment and measurement of workplace gender data.

1

Portfolio Overview

additional estimates statements

Department of Employment...... 7

1

Additional Estimates Statements—Department of Employment

Department of Employment

Section 1: Entityoverview and resources...... 8

1.1 Strategicdirection statement...... 8

1.2 Resource statement...... 8

1.3 Measures...... 12

1.4 Additional estimates and variations...... 14

1.5 Breakdown of additional estimates by appropriation bill...... 16

Section 2: Revisions to outcomes and planned performance...... 18

2.1 Outcomes and performance information...... 18

Section 3: Explanatory tables and budgeted financial statements...... 23

3.1 Explanatory tables...... 23

3.2 Budgeted financial statements...... 23

Department of Employment

Section 1: Entityoverview and resources

1.1Strategic direction statement

The Department of Employment was created on 18 September 2013. The role of the department is to provide policy advice and support, and implement programmes to deliver the Australian Government’s agenda to create more jobs, increase productivity and improve workplaces and safety through pursuing its two outcomes:

• Foster a productive and competitive labour market through employment policies and programmes that assist job seekers into work, meet employer needs and increase Australia’s workforce participation.
• Facilitate jobs growth through policies that promote fair, productive and safe workplaces.

A full outline of the Department of Employment’s strategic direction can be found in the 2015–16 Portfolio Budget Statements.

1.2resource statement

The Resource Statement details the resourcing for the Department of Employment at Additional Estimates. Table 1.1 outlines the total resourcing available from all sources for the 2015–16 Budget year, including variations through Appropriation Bills No.3 andNo.4,Special Appropriations and Special Accounts.

Table 1.1: Department of Employmentresource statement—Additional Estimates for 2015–16 as at Additional Estimates February2016

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) / 70,749 / 66,426 / 49,102 / 115,528
Departmental appropriation(c) / 327,013 / 312,944 / (5,261) / 307,683
s74 Retained Revenue Receipts(d) / 26,057 / 17,713 / 1,891 / 19,604
Total / 423,819 / 397,083 / 45,732 / 442,815
Administered expenses
Outcome 1 / 1,524,317 / 1,523,012 / (307) / 1,522,705
Outcome 2 / 28,235 / 21,035 / 296 / 21,331
Payments to corporate entities(e) / 7,563 / 7,727 / - / 7,727
Total / 1,560,115 / 1,551,774 / (11) / 1,551,763
Total ordinary annual services [A] / 1,983,934 / 1,948,857 / 45,721 / 1,994,578
Other services(f)
Departmental non-operating
Prior year appropriations(b) / 2,127 / - / - / -
Equity injections / 23,987 / 9,333 / 6,075 / 15,408
Total / 26,114 / 9,333 / 6,075 / 15,408
Total other services [B] / 26,114 / 9,333 / 6,075 / 15,408
Total available annual appropriations / 2,010,048 / 1,958,190 / 51,796 / 2,009,986

Table 1.1: Department of Employmentresourcestatement—Additional Estimates for 2015–16 as at Additional Estimates February2016(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—s77(g) / 44 / 30 / - / 30
Coal Mining Industry (Long Service Leave Funding) Act 1992 / 158,607 / 174,618 / (20,000) / 154,618
Safety, Rehabilitation and Compensation Act 1988 / 39,503 / 36,515 / (1,353) / 35,162
Asbestos-related Claims (Management of Commonwealth Liabilities) Act 2005 / 26,356 / 33,211 / (4,576) / 28,635
Fair Entitlements Guarantee Act 2012 / 307,890 / 198,768 / 10,376 / 209,144
Total special appropriations [C] / 532,400 / 443,142 / (15,553) / 427,589
Total appropriations excluding Special Accounts / 2,542,448 / 2,401,332 / 36,243 / 2,437,575
Special Accounts
Opening balance(h) / - / - / - / -
Total Special Account [D] / - / - / - / -
Total resourcing [A+B+C+D] / 2,542,448 / 2,401,332 / 36,243 / 2,437,575
Less payments to corporate entities through annual or special appropriations / (7,563) / (7,727) / - / (7,727)
Total net resourcing for Department of Employment / 2,534,885 / 2,393,605 / 36,243 / 2,429,848

(a) Appropriation Act (No. 1) 2015–16and Appropriation Bill (No. 3) 2015–16.

(b) Estimated adjusted balance carried from previous year for annual appropriations.

(c) Includes an amount of $27.4m in 2015–16 for the Departmental Capital Budget (refer to table 3.2.5 forfurther details). For accounting purposes this amount has been designated as 'contributions by owners'.

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

(e)‘Corporate Entities’ are Corporate Commonwealth Entities and Commonwealth Companies as defined under the PGPA Act 2013.

(f) Appropriation Act (No. 2) 2015–16andAppropriation Bill (No. 4) 2015–16.

(g) Repayments not provided for under other appropriations. Amounts received on or before 30June2014 were repaid under section 28 of the Financial Management and Accountability Act 1997.

(h) Estimated opening balance for special accounts (less ‘special public money’ held in a Services for Other Entities and Trust Moneys Special Accounts (SOETM)).

Reader note: All figures are GST exclusive. These figures may not match figures in the cash flow statement.

Table 1.1: Department of Employmentresource statement—Additional Estimates for 2015–16 as at Additional Estimates February 2016(continued)

Third party paymentsfrom and on behalf of other entities

Estimate at Budget
2015–16
$'000 / Estimate at Additional Estimates
2015–16
$'000
Receipts received from other entities for the provision of services
(disclosed above in s74 Retained Revenue Receipts section above) / 17,713 / 19,604
Payments made by other entities on behalf of the Department of Employment
(disclosed above) / 32,885 / 34,219
Payments made to corporate entities within the Portfolio
Comcare / (Annual Appropriation Bill 1) / (7,727) / (7,727)

1.3Measures

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

Table 1.2: Department of Employment2015–16measures since Budget

Programme / 2015–16
$'000 / 2016–17
$'000 / 2017–18
$'000 / 2018–19
$'000
Expense measures
Public Sector Savings—Enterprise Resource Planning Systems(a) / All
Administered expenses / - / - / - / -
Departmental expenses / - / - / (224) / (276)
Total / - / - / (224) / (276)
Public Sector Superannuation Accumulation Plan Administration Fees(b) / All
Administered expenses / - / - / - / -
Departmental expenses / (195) / (195) / (195) / (195)
Total / (195) / (195) / (195) / (195)
Addressing Welfare Reliance in Remote Communities(c) / 1.1
Administered expenses / - / - / - / -
Departmental expenses / 83 / - / - / -
Total / 83 / - / - / -
Geelong Employment Facilitator—extension / 1.1
Administered expenses / - / - / - / -
Departmental expenses / - / - / - / -
Total / - / - / - / -
Job Seeker Services—streamlining arrangements / 1.1
Administered expenses / - / (27,913) / (45,864) / (52,646)
Departmental expenses / - / - / - / -
Total / - / (27,913) / (45,864) / (52,646)
Mature Age Employment Programme—cessation / 1.1
Administered expenses / - / (3,335) / (3,388) / (3,442)
Departmental expenses / - / (283) / (285) / (287)
Total / - / (3,618) / (3,673) / (3,729)
Our North, Our Future—workforce for growth(d) / 1.1
Administered expenses / - / - / - / -
Departmental expenses / - / - / - / -
Total / - / - / - / -
Syrian and Iraqi Humanitarian Crisis(d) / 1.1
Administered expenses / 650 / 1,920 / 1,280 / 651
Departmental expenses / - / - / - / -
Total / 650 / 1,920 / 1,280 / 651
Transition to Work Programme—additional funding / 1.1
Administered expenses / - / - / - / -
Departmental expenses / - / - / - / -
Total / - / - / - / -

Table 1.2: Department of Employment 2015–16 measures since Budget (continued)

Programme / 2015–16
$'000 / 2016–17
$'000 / 2017–18
$'000 / 2018–19
$'000
Fair Entitlements Guarantee—indexation pause—continuation / 2.1
Administered expenses / - / - / - / (1,734)
Departmental expenses / - / - / - / -
Total / - / - / - / (1,734)
Total expense measures
Administered / 650 / (29,328) / (47,972) / (57,171)
Departmental / (112) / (478) / (704) / (758)
Total / 538 / (29,806) / (48,676) / (57,929)
Capital measures
Addressing Welfare Reliance in Remote Communities(c) / 1.1
Administered capital / - / - / - / -
Departmental capital / 426 / - / - / -
Total / 426 / - / - / -
Total capital measures
Administered / - / - / - / -
Departmental / 426 / - / - / -
Total / 426 / - / - / -

(a) This measure was first published in the 2015–16 Budget.

(b) This measure was first published in the 2014–15 Mid-Year Economic and Fiscal Outlook.

(c) The lead entity for this measure is the Department of the Prime Minister and Cabinet. The full measure description and package details appear in MYEFO under the Prime Minister and Cabinet portfolio.

(d) The lead entity for this measure is the Department of Immigration and Border Protection. The full measure description and package details appear in MYEFO under the Immigration and Border Protection portfolio.

Prepared on a Government Financial Statistics (fiscal) basis.

1.4Additional estimates and variations

The following tables detail the changes to the resourcing for the Department of Employment 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 No.3 and No.4. Table 1.4 details Additional Estimates or variations through other factors, such parameter adjustments.

Table 1.3: Additional estimates and variations to Outcomesfrom measures since 2015–16 Budget

Programme impacted / 2015–16
$'000 / 2016–17
$'000 / 2017–18
$'000 / 2018–19
$'000
All Outcomes
Decrease in estimates (departmental)
Public Sector Savings—Enterprise Resource Planning Systems / All / - / - / (224) / (276)
Public Sector Superannuation Accumulation Plan Administration Fees / All / (195) / (195) / (195) / (195)
Net impact on estimates for All Outcome (departmental) / (195) / (195) / (419) / (471)
Outcome 1
Increase in estimates (administered)
Syrian and Iraqi Humanitarian Crisis / 1.1 / 650 / 1,920 / 1,280 / 651
Decrease in estimates (administered)
Job Seeker Services—streamlining arrangements / 1.1 / - / (27,913) / (45,864) / (52,646)
Mature Age Employment Programme—cessation / 1.1 / - / (3,335) / (3,388) / (3,442)
Net impact on estimates for Outcome 1 (administered) / 650 / (29,328) / (47,972) / (55,437)
Increase in estimates (departmental)
Addressing Welfare Reliance in Remote Communities / 1.1 / 83 / - / - / -
Decrease in estimates (departmental)
Mature Age Employment Programme—cessation / 1.1 / - / (283) / (285) / (287)
Net impact on estimates for Outcome 1 (departmental) / 83 / (283) / (285) / (287)
Outcome 2
Decrease in estimates (administered)
Fair Entitlements Guarantee—indexation pause—continuation / 2.1 / - / - / - / (1,734)
Net impact on estimates for Outcome 2 (administered) / - / - / - / (1,734)

Table 1.4: Additional estimates and variations to Outcomes from other variations

Programme impacted / 2015–16
$'000 / 2016–17
$'000 / 2017–18
$'000 / 2018–19
$'000
Outcome 1
Increase in estimates (administered)
Programme specific parameter / 1.1 / 1,429 / 2,708 / 2,814 / 2,799
Movement of funds / 1.1 / - / - / - / 2,797
Other / 1.1 / - / - / - / 2,768
Decrease in estimates (administered)
Parameter adjustments / 1.1 / - / (2) / (3) / (5)
Changes in number of unemployment beneficiaries / 1.1 / (80) / (1,188) / (1,902) / (1,327)
Other / 1.1 / (2,306) / (492) / (143) / -
Net impact on estimates for Outcome 1 (administered) / (957) / 1,026 / 766 / 7,032
Increase in estimates (departmental)
Self balancing transfers between same year / 1 / - / 2,039 / 2,250 / 2,250
Other / 1 / 2,672 / 2,672 / 2,672 / 2,672
Decrease in estimates (departmental)
Parameter adjustments / 1 / - / - / (236) / (472)
Self balancingtransfers between same year / 1 / (5,649) / - / - / -
Other / 1 / (6,172) / (3,770) / (2,572) / (1,777)
Net impact on estimates for Outcome 1 (departmental) / (9,149) / 941 / 2,114 / 2,673
Outcome 2
Increase in estimates (administered)
Related entity / 2.3 / - / 971 / - / -
Parameter adjustments / 2.2 / 242 / 482 / 473 / 493
Other / 2.1 / 10,648 / - / - / 793
Decrease in estimates (administered)
Related entity / 2.3 / (5,929) / (1,695) / (7,619) / (4,092)
Programme specific parameter / 2.2 / (218) / (240) / (42) / (43)
Parameter adjustments / 2.3 / - / - / (6) / (12)
Other / 2.1, 2.3 / (20,000) / (20,061) / (20,061) / (20,061)
Net impact on estimates for Outcome 2 (administered) / (15,257) / (20,543) / (27,255) / (22,922)
Decrease in estimates (departmental)
Parameter adjustments / 2 / - / - / (37) / (75)
Other / 2 / (1,786) / (1,396) / (1,199) / (1,071)
Net impact on estimates for Outcome 2 (departmental) / (1,786) / (1,396) / (1,236) / (1,146)

1.5Breakdown of additional estimates by appropriation bill

The following tables detail the Additional Estimates sought for the Department of Employment through Appropriation Bills No.3 andNo. 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
Foster a productive and competitive labour market through employment policies and programmes that assist job seekers into work, meet employer needs and increase Australia's workforce participation. / 1,524,317 / 1,523,012 / 1,522,705 / - / 307
Outcome 2
Facilitate jobs growth through policies that promote fair, productive and safe workplaces. / 28,235 / 21,352 / 21,672 / 320 / -
Total administered / 1,552,552 / 1,544,364 / 1,544,377 / 320 / 307
DEPARTMENTAL PROGRAMMES
Outcome 1
Foster a productive and competitive labour market through employment policies and programmes that assist job seekers into work, meet employer needs and increase Australia's workforce participation. / 269,055 / 270,650 / 265,416 / - / 5,234
Outcome 2
Facilitate jobs growth through policies that promote fair, productive and safe workplaces. / 57,958 / 42,294 / 42,267 / - / 27
Total departmental / 327,013 / 312,944 / 307,683 / - / 5,261
Total administered and departmental / 1,879,565 / 1,857,308 / 1,852,060 / 320 / 5,568

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 / 23,987 / 9,333 / 15,408 / 6,075 / -
Total non-operating / 23,987 / 9,333 / 15,408 / 6,075 / -
Total other services / 23,987 / 9,333 / 15,408 / 6,075 / -

Section 2: Revisions to outcomes and planned performance

2.1Outcomes and performance information

No changes have been made to the Department of Employment’s outcome structure since the 2015–16 Portfolio Budget Statements. Complete details of the department’s outcomes and performance information can be found in the 2015–16 Portfolio Budget Statements.