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Portfolio AdditionalEstimates Statements

2019–20

Education, Skills and Employment Portfolio

This document has been produced as an aid to accessing the information contained in the Education and Training Portfolio Additional Estimates Statements 2019–20. Whilst the information contained is the same, it differs in format from the document tabled in Parliament on 13 February 2020). Footnotes, page references and the presentation of tables may not exactly match the print friendly edition. The financial tables are also available in excel format from data.gov.au.

Explanations of Additional Estimates 2019–20

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© Commonwealth of Australia 2020

ISSN 2652-4708 (Print)ISSN 2652-4716 (Online)

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Other Uses Inquiries regarding this licence and any other use of this document should be directed to the Department of Education, Skills and Employment on 1300 566 046.

The Hon Dan Tehan MP

Minister for Education

Senator the Hon Michaelia Cash

Minister for Employment, Skills, Small and Family Business

Senator the Hon Scott RyanPresident of the SenateParliament HouseCANBERRA ACT 2600

The Hon Tony Smith MPSpeakerParliament HouseCANBERRA ACT 2600

Dear Mr President and Mr Speaker

We hereby submit Portfolio Additional Estimates Statements in support of the2019–20 Additional Estimates for the Education, Skills and 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.

We present these statements by virtue of our ministerial responsibility for accountability to the Parliament and, through it, the public.

Yours sincerely

DAN TEHAN

MICHAELIA CASH

Parliament House Canberra ACT 2600 Australia

ABBREVIATIONS AND CONVENTIONS

The following notations may be used:

NEC/nec not elsewhere classified- nil.. not zero, but rounded to zerona not applicable (unless otherwise specified)nfp not for publication$m $ million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 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 in the Department of Education, Skills and Employment on 1300 566 046.

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 www.budget.gov.au.

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USER GUIDETO THE

PORTFOLIO ADDITIONALESTIMATE STATEMENTS

USER GUIDE

The purpose of the 2019–20 Portfolio Additional Estimates Statements (PAES), like that of the Portfolio Budget Statements (PBS), 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 PBS 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 programs supporting those outcomes.

The PAES facilitate understanding of the proposed appropriations in Appropriation Bills (Nos. 3 and 4) and Appropriation (Parliamentary Departments) Bill (No. 2) 2019–20. 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) 2019–20 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.

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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.Section 1: Entity overview and resourcesThis section details the changes in total resources available to an entity, the impact of any measures since Budget, and impact of Appropriation Bills Nos. 3 and 4.Section 2: Revisions to outcomes and planned performanceThis section details changes to Government outcomes and/or changes to the planned performance of entity programs.Section 3: Special account flows and budgeted financial statementsThis section contains updated explanatory tables on special account flows and staffing levels and revisions to the budgeted financial statements.Portfolio glossary

Explains key terms relevant to the portfolio.

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CONTENTS

Portfolio overview........................................................................................................

Entity additional estimates statements......................................................................Department of Education, Skills and Employment.........................................................Australian Research Council........................................................................................Australian Skills Quality Authority...............................................................................

Portfolio glossary and acronyms...........................................................................Glossary.....................................................................................................................Acronyms...................................................................................................................

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PORTFOLIO OVERVIEW

PORTFOLIO OVERVIEW

Through the Education, Skills and Employment portfolio, the Australian Government helps to create an inclusive and prosperous Australia by maximising opportunity through national leadership on education, training and employment policy. We work to ensure Australians can experience the social wellbeing and economic benefits that quality education, training and employment provide.

The Education, Skills and Employment portfolio comprises the Department of Education, Skills and Employment (the department) and the following entities (see Figure 1 on page 3):

Australian Curriculum, Assessment and Reporting Authority Australian Institute for Teaching and School Leadership Australian Research Council Australian Skills Quality Authority Tertiary Education Quality and Standards Agency Australian National University. 1

The department and portfolio entities work with state and territory governments, other Australian Government entities and a range of service providers to provide high quality policy advice and services for the benefit of all Australians.

Under the Administrative Arrangements Order of 29 May 2019, the department’s responsibility for skills and vocational education and the Australian Skills Quality Authority transferred to the Employment, Skills, Small and Family Business portfolio. The department also transferred responsibility for adult migrant education to the Home Affairs Portfolio.

Under the Administrative Arrangements Order of 5 December 2019 – effective from 1 February 2020, responsibility for skills and vocational education, and employment transferred to the department, and the Australian Skills Quality Authority became part of the Education, Skills and Employment portfolio.

The department, the Australian Research Council and the Australian Skills Quality Authority are affected by Additional Estimates and required to publish statements in the PAES. The Additional Estimates are outlined in Table 1.4 Appropriation Bill (No. 3) 2019–20 and Table 1.5 Appropriation Bill (No. 4) 2019–20.

1 The Australian National University is not part of the general government sector or included in the Commonwealth general government sector fiscal estimates and does not have a chapter in the PBS or PAES.

2

Figure 1: Education, Skills and Employment portfolio structure and outcomes

The Hon Dan Tehan MPMinister for Education

Senator the Hon Michaelia Cash

Minister for Employment, Skills, Small and Family Business

Department of Education, Skills and Employment Dr Michele Bruniges AM—Secretary

Outcome 1: Improved early learning, schooling, student educational outcomes and transitions to and from school through access to quality child care, support, parent engagement, quality teaching and learning environments.

Outcome 2: Promote growth in economic productivity and social wellbeing through access to quality higher education, international education, and international quality research.

Outcome 3: Promote growth in economic productivity and social wellbeing through access to quality skills and training.

Outcome 4: Foster a productive and competitive labour market through policies and programs that assist job seekers into work and meet employer needs.

Australian Curriculum, Assessment and Reporting AuthorityDavid de Carvalho—Chief Executive Officer

Outcome: Improved quality and consistency of school education in Australia through a national curriculum, national assessment, data collection, and performance reporting system.

Australian Institute for Teaching and School LeadershipMark Grant—Chief Executive Officer

Outcome: Enhance the quality of teaching and school leadership through developing standards, recognising teaching excellence, providing professional development opportunities, and supporting the teaching profession.

Australian Research Council Professor Sue Thomas—Chief Executive Officer

Outcome: Growth of knowledge and innovation through managing research funding schemes, measuring research excellence and providing advice.

Tertiary Education Quality and Standards AgencyAnthony McClaran—Chief Executive Officer

Outcome: Contribute to a high quality higher education sector through streamlined and nationally consistent higher education regulatory arrangements; registration of higher education providers; accreditation of higher education courses; and investigation, quality assurance and dissemination of higher education standards and performance.

Australian Skills Quality AuthoritySaxon Rice—Chief Commissioner and Chief Executive Officer

Outcome: Contribute to a high quality vocational education and training sector, including through streamlined and nationally consistent regulation of training providers and courses, and the communication of advice to the sector on improvements to the quality of vocational education and training.

Australian National UniversityProfessor Brian P. Schmidt AC—Vice-Chancellor, President and Chief Executive Officer

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ENTITY ADDITIONAL ESTIMATES STATEMENTS

DEPARTMENT OF EDUCATION, SKILLS AND EMPLOYMENT

Section 1: Entity overview and resources.................................................................1.1 Strategic direction statement....................................................................................1.2 Entity resource statement.......................................................................................1.3 Entity Measures.....................................................................................................1.4 Additional estimates, resourcing and variations to outcomes.................................1.5 Breakdown of additional estimates by appropriation bill.........................................

Section 2: Revisions to outcomes and planned performance...............................2.1 Changes to outcome and program structures........................................................2.2 Budgeted expenses and performance for outcome 1.............................................2.3 Budgeted expenses and performance for outcome 2.............................................2.4 Budgeted expenses and performance for outcome 3.............................................2.5 Budgeted expenses and performance for outcome 4.............................................

Section 3: Special account flows and budgeted financial statements..................3.1 Special account flows.............................................................................................3.2 Budgeted financial statements...............................................................................

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DEPARTMENT OF EDUCATION, SKILLS AND EMPLOYMENT

Section 1: Entity overview and resources

1.1 STRATEGIC DIRECTION STATEMENT

The Department of Education, Skills and Employment’s purpose is to help to create an inclusive and prosperous Australia by maximising opportunity through national leadership on education, training and employment policy. The department will work to ensure Australians can experience the social wellbeing and economic benefits that quality education, training and employment provide by actively supporting our Ministers to deliver Government policies and priorities.

The department’s strategic priorities are:

Improving learning outcomes by enabling quality, affordable and accessible early education and care for families and making it easier for families who want to work or have other responsibilities

Improving schooling outcomes for our children Equipping the workforce of the future through globally competitive

tertiary education, training and research sectors Helping people find and keep a job, create their own job, change

jobs, reskill and enjoy fulfilling careers Developing a strong evidence base for effective policy that reflects

and understands the varied needs of the Australian population, business and industry.

The Australian Government has announced a range of measures to support bushfire affected communities, including an additional $400 (a total of $800) for each child that qualifies under the Australian Government Disaster Recovery Payment, to be paid through Services Australia, which will help families with education expenses.

The Government will provide an additional $8.0 million for mental health support through Beyond Blue to fund an extra 25 Beyond Blue liaison officers to work with local schools and early childhood services in bushfire-affected communities. Extra funding will be available on request to state and territory governments for school chaplains.

Families in bushfire-declared local government areas will be exempt from Child Care Subsidy activity test debts for the 2019–20 financial year. Families can still claim the Child Care Subsidy even if their work, study or volunteering hours have been impacted by the bushfires.

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Entity Additional Estimates Statements – Department of Education, Skills and Employment

Students needing help to attend university in bushfire-affected communities will be given special consideration to their circumstances if they apply for one of over 1,000 scholarships through the $58.1 million Rural and Regional Enterprise Scholarships program, initially announced in the 2017–18 Budget.

The Government is also providing $5 million in Community Child Care Fund (CCCF) special circumstance grant funding to support child care services in bushfire affected areas, in addition to the $5 million in CCCF special circumstances drought support funding for child care services in drought affected areas.

The Government will provide an additional $1.3 billion over four years from 2019–20 for a range of measures to support farmers and communities in drought. The package of measures provides immediate action for those in drought, support for the wider communities affected by drought and support for long-term resilience and preparedness. This package includes $20.0 million in 2019–20 for Special Circumstances funding for eligible drought-affected non-government schools experiencing financial difficulties to help ensure the viability of these schools.

The Government’s Mid-Year Economic and Fiscal Outlook (MYEFO) 2019–20, released on 16 December 2019, includes a range of measures for the department to implement.

The Government will provide an additional $23.9 million over three years from 2020–21 (and $7.8 million per year ongoing) to continue funding the Australian Children’s Education and Care Quality Authority on an ongoing basis. Total Commonwealth funding will now be around $15.3 million per year. This will support the nationally consistent regulation of quality and safety in early childhood education and care services across Australia.

The Government will provide $10.8 million over three years from 2019–20 for a voluntary phonics health check for year one students that allows parents and teachers to ensure their children are not falling behind. This funding will develop an online Phonics Hub and assist primary schools, particularly in low socio economic areas, to access additional phonics resources and training.

The Government will provide $2.0 million over three years from 2019–20 to the Country Education Partnership’s Rural Inspire Initiative to support young people living in rural and remote communities by developing leadership skills and knowledge. The Initiative also aims to explore education challenges and opportunities facing rural youth.

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The Government will provide an additional $15.0 million over three years from 2019–20 to support more high achieving teachers to become high quality school leaders in rural, remote and disadvantaged schools. This measure builds on the 2018–19 Budget measure, High Achieving Teachers Program.

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The Government will provide $1.8 million over two years from 2019–20 to extend the Flexible Literacy for Remote Primary Schools Program pilot into the 2020 school year to help improve literacy outcomes by continuing to trial flexible teaching methods.

The Government will provide $15.0 million over four years from 2019–20 to support higher education in regional Australia by establishing a further five Regional University Centres (formerly known as Regional Study Hubs). The additional funding will increase the number of Regional University Centres from 16 to 21 to provide more opportunities for students to undertake higher education while remaining in their local communities.

The Government will provide $30.0 million over three years from 2020–21 to the new School of Mines and Manufacturing of Central Queensland University. The new school will provide training in traditional trades and emerging technologies to support Australia’s growing resources sector.

The Government will provide $10.0 million in 2019–20 to the General Sir John Monash Foundation to establish the Bob Hawke John Monash Scholarship and the Tim Fischer John Monash Scholarship programs. The Bob Hawke Scholarship will be provided to scholars with leadership potential and the Tim Fischer Scholarship will be offered to scholars from regional or rural backgrounds.

The Government will provide $2.4 million over four years from 2019–20 to extend the removal of Higher Education Loan Program (HELP) debt for teachers working in very remote locations of Australia to include early childhood teachers. From 2019, HELP debts for early childhood teachers will be extinguished after four years of employment in very remote locations of Australia. Additionally, indexation on HELP debt will no longer accrue for early childhood teachers while working in these locations.

The Government will provide $9.6 million over two years from 2019–20 to bring together universities and industry to partner on innovative projects. This measure includes:

• $2.0 million to the University of Wollongong to establish an Industry 4.0 Hub in Nowra

• $2.0 million to Deakin University to establish a hydrogen fuel cell and supply chain pilot program in Warrnambool

• $2.0 million to Flinders University to deliver an advanced apprenticeship diploma to upskill employees in digital technologies

• $3.6 million to support students through an advanced apprenticeship model of course delivery with industry

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engagement. The Diploma in Applied Technologies program will be delivered by six partner universities around Australia.

The Government will provide $60.0 million over four years from 2019–20 to expand the Australian Apprentice Wage Subsidy Trial to provide additional support for small businesses employing Australian Apprentices across rural and regional Australia. This

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expansion will benefit up to an additional 1,630 new apprentices undertaking full-time apprenticeships at the Certificate III and IV levels in rural and regional areas, and in areas of skills needs.

The Government will provide $21.0 million over four years from 2019–20 to further strengthen the compliance and regulatory arrangements of the Vocational and Education Training (VET) sector and to improve service delivery. This funding includes:

• $18.0 million over three years from 2019–20 to fund the continued implementation of the VET FEE-HELP Redress measure in 2020, which provides a legislative remedy under the Higher Education Support Act 2003 for students who incurred debts under the VET FEE-HELP loans scheme

• $3.0 million carried over, to be spent over two years from 2019–20 for additional design work, stakeholder engagement and user research to further inform the development of the VET Student Loans IT System and ensure the new IT System supports user needs, particularly in the context of the significant reform agenda within the VET Sector.

The Government will provide $50.0 million over two years from 2020–21 to establish the Revitalisation TAFE Campuses Across Australia initiative, in partnership with state and territory governments. This funding will be contingent on matched contributions from states and territories. This measure will improve vocational education infrastructure ensuring TAFEs are equipped to deliver training to the standards expected by industry and students.

The Government will provide $34.3 million over four years from 2019–20 to further improve the quality of the VET system, and continue to implement the response to the Expert Review of Australia’s Vocational Education and Training System and the Review of the National Vocation Education and Training Regulator Act 2011. This package includes:

• $9.7 million over two years from 2019–20 to establish a Skills Organisation pilot for the mining and resources industry to trial new ways of working across the national training system to ensure graduating trainees and apprentices have the particular skills needed by employers in the mining industry

• $4.3 million over two years from 2019–20 to hold up to 25 additional job fairs to connect jobseekers with local employers who have available job vacancies in communities across Australia

• $2.2 million over two years from 2019–20 to examine and develop possible delivery options to replace the current Australian Apprenticeship IT system to deliver faster transactions

15


and improved government service delivery for employers and apprentices

• $18.1 million over four years from 2019–20 to reform the Australian Skills Quality Authority (ASQA) to strengthen quality assurance in the VET sector.

16


The Government will increase the lifetime loan limit available to aviation students studying at a VET Student Loans (VSL) approved provider to $152,700, from January 2020.

The Government will provide $75.0 million over four years from 2019–20 to establish a mid-career checkpoint for caregivers who have taken time out of their career to care for their family and are seeking to return to the workforce. This will support up to 40,000 caregivers who have taken two or more years out of the workforce for caring responsibilities to step back into or step up their careers by providing tailored advice on professional development or further skills needed to achieve their employment goals.

The Government will provide $18.3 million over four years from 2019–20 on the Jobs and Education Data Infrastructure (JEDI) project – mapping skills for better futures. JEDI will be a single comprehensive source of up-to-date information about jobs, skills and education to answer the questions individuals, businesses, education providers and policy makers have about the changing labour market. The measure will provide the data insights to support the work of the National Skills Commission to drive research and analysis of future skills needs across industry; better match job seekers to local jobs based on skills; and provide the infrastructure required to deliver greater capabilities for both new and existing user-friendly tools.

The Government will provide $3.6 million over three years from 2019–20 to further expand the Online Employment Services Trial program, providing digital employment services nationally to an additional 33,750 job-ready participants.

The Government will invest an additional $12.5 million over four years from 2019–20 (including $0.5 million in capital in 2019–20) to extend the time a participant can spend in the Transition to Work program from 12 months to 18 months. This measure will help disadvantaged young Australians enter employment by allowing them more time to build their skills, confidence and work readiness.

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1.2 ENTITY RESOURCE STATEMENT

The Entity Resource Statement details the resourcing for the Department of Education, Skills and Employment at Additional Estimates. Table 1.1 outlines the total resourcing available from all sources for the 2019–20 Budget year, including variations through Appropriation Bills No. 3 and No. 4, Special Appropriations and Special Accounts.

Table 1.1: Department of Education, Skills and Employment resource statement — Additional Estimates for 2019–20 as at February 2020

Actualavailable

appropriation (a)(b)

2018–19$'000

Estimateas at

Budget (a)(c)

2019–20$'000

ProposedAdditionalEstimates

2019–20$'000

Totalestimate atAdditionalEstimates

(b)2019–20

$'000

Departmental

Annual appropriations - ordinary annual services (d)

Prior year appropriations available 60,738 - -

60,738

s75 Transfer of funds (to)/from Employment 8,000 - -

8,000

Departmental appropriation 361,038 276,236 3,104

279,340

s75 Transfer of funds (to)/from Employment - - -

187,126

s74 External Revenue (e) 18,209 15,527 6,791

22,318

s74 External Revenue (e) - from Employment - - -

43,959

Departmental capital budget (f) 14,966 18,623 -

18,623


8,800

Annual appropriations - other services - non-operating (g)

Prior year appropriations available 7,288 - -

7,288

Equity injection 9,210 9,473 932

10,405


15,634

Total departmental annual appropriations 479,449 319,859 10,827

662,231

18


Actualavailable


2018–19$'000

Estimateas at

Budget (a)(c)

2019–20$'000


2019–20$'000


(b)2019–20

$'000

Total departmental special appropriations - - -

-

Special accounts (h)

Opening balance 4,089 - -

-


4,112

Appropriation receipts (i) - - -

-

Appropriation receipts from other entities (j)

- - - -

Non-appropriation receipts 5,340 - -

-


6,152

Adjustments - - -

-

s75 Transfer of funds (to)/from Employment (5,431) - -

-

Total special accounts 3,998 - -

10,264

less departmental appropriations drawn from annual/special appropriations and credited to special accounts

Total departmental resourcing 483,447 319,859 10,827

672,495

Administered

Annual appropriations - ordinary annual services (d)

Prior year appropriations available - - -

-

Outcome 1 483,787 500,436 7,343

507,779

Outcome 2 1,325,176 248,623 9,886

258,509

Outcome 3 - - 16,975

16,975


371,648

19


Actualavailable


2018–19$'000

Estimateas at

Budget (a)(c)

2019–20$'000


2019–20$'000


(b)2019–20

$'000

Outcome 4 - - -

-


483,790

Payments to corporate entities (k) - - -

-

Annual appropriations - other services - specific payments to States, ACT, NT and local government (g)(l)

Prior year appropriations available - - -

-

Outcome 1 62,514 96,243 20,000

116,243

Total administered annual appropriations 1,871,477 845,302 54,204

1,754,944

Total administered special appropriations 44,149,170 45,897,353 553,741

46,451,094

Special accounts (h)

Opening balance 88,704 78,442 3,265

81,707

s75 Transfer of funds (to)/from Employment 1,689

Appropriation receipts (i) 12,458 - 4,500

4,500

Appropriation receipts from other entities (j)

- - - -

Non-appropriation receipts 4,278 5,375 245

5,620

Adjustments - - -

-

s75 Transfer of funds (to)/from Employment (1,689) - -

19,558

Total special account receipts 103,751 83,817 8,010 113,074

less administered appropriations drawn from annual/special appropriations and credited to special accounts (12,458) - (4,500) (4,500)

less payments to corporate entities from annual/special appropriations

- - - -

Total administered resourcing 46,111,940 46,826,472 611,455

48,314,612

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Actualavailable


2018–19$'000

Estimateas at

Budget (a)(c)

2019–20$'000


2019–20$'000


(b)2019–20

$'000

Total resourcing for the Department of Education, Skills and Employment 46,595,387 47,146,331 622,282 48,987,107

Actual

2018–19 2019–20

Average staffing level (number) (m) 1,635 3,387

Table 1.1: Department of Education, Skills and Employment resource statement — Additional Estimates for 2019–20 as at February 2019 (continued)Third party payments from and on behalf of other entities

Actualavailable


2018–19$'000

Estimateas at

Budget (a)(c)

2019–20$'000

ProposedAdditiona

lEstimate

s

2019–20$'000

Totalestimate

atAdditionalEstimates

(b)2019–20

$'000

Payments made by other entities on behalf of Education, Skills and Employment

Services Australia 7,825,531 8,268,499 (8,611) 8,259,888

Payments made to other entities for the provision of services (disclosed above)

Department of Social Services 6,411 6,709 591 7,300

Receipts received from other entities for the provision of services (disclosed above in s74 External Revenue section above) 18,209 15,527 6,791 22,318

Receipts received from other entities for the provision of services (disclosed above in s74 External Revenue section above) - - - 43,959

Payments made to corporate entities within the Portfolio

Australian Curriculum, Assessment and Reporting Authority (Annual Appropriation Act No.1) 12,982 15,376 2,128 17,504

Australian Institute for Teaching and School Leadership (Annual Appropriation Act No.1) 17,747 13,644 1,739 15,383

Prepared on a resourcing (i.e. appropriations available) basis.All figures shown above are GST exclusive - these may not match figures in the cash flow statement. (a) Reflects appropriations transferred under Section 75 of the Public Governance Performance and

Accountability Act 2013 (PGPA Act) following the Administrative Arrangements Order of 29 May 2019. The Department of Home Affairs received 2019–20 Annual Appropriations of $118.8 million under a section 75 determination. The then Department of Employment, Skills, Small and Family Business received 2019–20 Annual Appropriations of $384.8 million under a section 75 determination.

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Entity Additional Estimates Statements – Department of Education, Skills and Employment(b) Reflects the interim transfer of appropriations under Section 75 of the PGPA Act, with the then

Department of Employment, Skills, Small and Family Business following the Administrative Arrangements Order announced on 5 December 2019 with a date of effect of 1 February 2020. Pending finalisation, further transfers and movements will be reported in future Portfolio Budget publications.

(c) Includes Election Commitments subsequently presented in the 2019–20 Mid-Year Economic and Fiscal Outlook.

(d) Supply Act (No. 1) 2019–20, Appropriation Act (No. 1) 2019–2020 and Appropriation Bill (No. 3) 2019–2020.

(e) Estimated external revenue receipts under section 74 of the PGPA Act.(f) Departmental capital budgets are not separately identified in Appropriation Act (No. 1) and form part of

ordinary annual services items. Please refer to Table 3.6 for further details. For accounting purposes, this amount has been designated as a 'contribution by owner'.

(g) Supply Act (No. 2) 2019–2020, Appropriation Act (No. 2) 2019–2020 and Appropriation Act (No. 4) 2019–2020.

(h) Excludes trust moneys held in Services for Other Entities and Trust Moneys (SOETM) and other special accounts. For further information on special accounts (excluding amounts held on trust), please see Table 3.1.

(i) Amounts credited to the special account(s) from Education annual and special appropriations. (j) Amounts credited to the special account(s) from another entity's annual and special appropriations. (k) 'Corporate entities' are corporate Commonwealth entities and Commonwealth companies as defined

under the PGPA Act.

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(l) Relates to appropriations sought for payment to the States, ACT, NT and local governments in Appropriation Bill (No. 4) 2019–2020. The Government continues to grow its investment in Australian Schools. This includes $116.243 million for payments to states and territories in Appropriation Act (No. 2), 2019–2020 and Appropriation Bill (No. 4) 2019–2020 under Outcome 1, for Program 1.3 - Additional Support for Northern Territory Schools ($8.575 million), for Program 1.4 - Adjustment Assistance ($12.458 million); Non-Government Representative Bodies ($40.013 million); and Special Circumstances funding ($22.997 million), and for Program 1.5 - Literacy Support for Tasmanian Students ($2.000 million) and Local School Community Fund ($30.200 million). Funding for the Additional Support for Northern Territory Schools is for Northern Territory only. The distribution of the funding under the Non-Government Representative Bodies program is based on advice from the Independent Schools Council of Australia and the National Catholic Education Commission. The distribution of the Adjustment Assistance program will be determined following consideration of applications from eligible schools for national adjustment assistance funding and based on advice from the ACT Catholic system and ACT Association of Independent Schools for assistance to the ACT non-government sector. Funding under the Special Circumstances funding program is for short term emergency assistance and is determined following consideration of applications from schools as events occur. Funding under the Literacy Support for Tasmanian Students is for Tasmania only. Terms and conditions are made under the authority from the Australian Education Act 2013 and the Australian Education Regulation.

(m) The 2018–19 ASL results reflect the Department of Education's 2018–19 Annual Report. Results for the then Department of Employment, Skills, Small and Family Business are reported in its 2018–19 Annual Report.

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1.3 ENTITY MEASURES

Table 1.2 summarises new Government measures taken since the 2019–20 Budget. The table is split into revenue, expense and capital measures, with the affected program identified.

Table 1.2: Department of Education, Skills and Employment 2019–20 measures since Budget

Progra

m2019–20

$'0002020–21

$'0002021–22

$'0002022–23

$'000Revenue measures FEE-HELP – increase in loan limit for aviation courses (a) 2.4

Administered revenues 167 578 1,151 2,023 Departmental revenues - - - -

Total 167 578 1,151 2,023 Higher Education Loan Program — encouraging Early Childhood Teachers to work in very remote areas

2.4

Administered revenues (125) (116) (120) (7)Departmental revenues - - - -

Total (125) (116) (120) (7)Improving Integrity of the Vocational and Education Training System 3.1

Administered revenues - (531) (531) (531)Departmental revenues - - - -

Total - (531) (531) (531)Total revenue measures

Administered 42 (69) 500 1,485 Departmental - - - -

Total 42 (69) 500 1,485 Expense measures Election Commitment — Efficiency Dividend — extension (b) 1, 2

Administered expenses - - - - Departmental expenses (1,995) (5,449) (7,110) (6,886)

Total Drought Response, Resilience and Preparedness Plan — additional support for farmers and communities in drought (c)

1.1, 1.4

Administered expenses 25,641 - - - Departmental expenses - - - -

Total 25,641 - - - Australian Children’s Education and Care Quality Authority — ongoing funding

1.1, 1.5, 2.3

Administered expenses (9,100) 3,830 2,609 2,653 Departmental expenses - - - -

Total (9,100) 3,830 2,609 2,653

24


Progra

m2019–20

$'0002020–21

$'0002021–22

$'0002022–23

$'000Bushfire Response Package - Assisting families by exempting them from the Child Care Subsidy activity test debt for 2019-20 (d)

1.1, 1.2

Administered expenses - 23,934 - - Departmental expenses - - - -

Total - 23,934 - - Bushfire Response Package - Mental Health Support for School Communities and early childhood services (d)

1.5

Administered expenses 4,000 4,000 - - Departmental expenses - - - -

Total 4,000 4,000 - - Drought Response, Resilience and Preparedness Plan - Extension of Special Circumstances Funding (c)

1.4


Total 10,000 - - - Election Commitment — National Phonics Check (b) 1.5

Administered expenses 2,200 4,300 4,300 - Departmental expenses - - - -

Total 2,200 4,300 4,300 - Election Commitment — Rural Inspire Initiative (b) 1.5

Administered expenses 500 1,000 500 - Departmental expenses - - - -

Total 500 1,000 500 - Election Commitment — Teach for Australia Future Leaders Program — additional funding (b)

1.5

Administered expenses 2,500 2,500 10,000 - Departmental expenses - - - -

Total 2,500 2,500 - - Flexible Literacy for Remote Primary Schools Program — extension 1.5

Administered expenses - - - - Departmental expenses - - - -

Total - - - - Election Commitment — Investing in Regional Australia — additional Regional University Centres (b)

2.3

Administered expenses 3,750 3,750 3,750 3,750 Departmental expenses - - - -

Total 3,750 3,750 3,750 3,750 Election Commitment — New Central Queensland School of Mines and Manufacturing — Gladstone and Rockhampton (b)

2.3

Administered expenses - 13,500 15,000 1,500 Departmental expenses - - - -

Total - 13,500 15,000 1,500

25


Progra

m2019–20

$'0002020–21

$'0002021–22

$'0002022–23

$'000General Sir John Monash Foundation 2.3


Total 10,000 - - - Pilot Programs to Enhance Collaboration between Universities and Industry

2.3, 2.6

Administered expenses - - - - Departmental expenses - - - -

Total - - - - FEE-HELP – increase in loan limit for aviation courses (a) 2.4

Administered expenses 121 348 605 844 Departmental expenses - - - -

Total 121 348 605 844 Higher Education Loan Program — encouraging Early Childhood Teachers to work in very remote areas

2.4

Administered expenses - - - 2,362 Departmental expenses 36 36 36 36

Total 36 36 36 2,398 Election Commitment — Australian Apprentice Wage Subsidy Trial — expansion (b)

3.1


Total 12,700 23,600 16,600 7,100 Election Commitment — Mid-Career Checkpoint — establishment (b) 3.1


Total 5,000 17,500 26,250 26,250 Improving Integrity of the Vocational and Education Training System 3.1

Administered expenses - - - - Departmental expenses 3,586 1,356 615 -

Total 3,586 1,356 615 - Jobs and Education Data Infrastructure — mapping skills for better futures

3.1, 4.1

Administered expenses - - - - Departmental expenses 3,064 4,283 3,523 3,403

Total 3,064 4,283 3,523 3,403 Skills Package — strengthening the national training system 3.1,4.1

Administered expenses 2,228 4,223 3,375 - Departmental expenses 4,343 7,215 2,915 1,994

Total 6,571 11,438 6,290 1,994

26


Progra

m2019–20

$'0002020–21

$'0002021–22

$'0002022–23

$'000Election Commitment — Efficiency Dividend — extension (b) 4

Administered expenses - - - - Departmental expenses (1,717) (4,938) (6,528) (6,248)

Total (1,717) (4,938) (6,528) (6,248)Increasing Uptake of Workers in Australia's Pacific Labour Mobility Initiatives and Finalisation of a Horticulture Industry Labour Agreement

4.1

Administered expenses - - - - Departmental expenses 549 2,754 3,110 -

Total 549 2,754 3,110 - Online Employment Services Trial — expansion 4.1

Administered expenses (2,027) (13,099) (14,140) (3,416)Departmental expenses 377 1,639 1,616 -

Total (1,650) (11,460) (12,524) (3,416)Protecting Your Super Package — putting members' interest first — amendments

4.1

Administered expenses (132) (421) (369) (350)Departmental expenses - - - -

Total (132) (421) (369) (350)Transition to Work — extending support for young people 4.1

Administered expenses - (11,593) (7,848) (8,661)Departmental expenses 232 707 452 190

Total 232 (10,886) (7,396) (8,471)Total expense measures (e)

Administered 67,381 77,372 60,632 32,032 Departmental 8,475 7,603 (1,371) (7,511)

Total 75,856 84,975 59,261 24,521 Capital measures Election Commitment — Efficiency Dividend — extension (b)

Administered capital - - - - Departmental capital 1, 2 (120) (362) (483) (487)

Total (120) (362) (483) (487)Increasing Uptake of Workers in Australia's Pacific Labour Mobility Initiatives and Finalisation of a Horiculture Industry Labour Agreement (f)

4.1

Administered capital - - - - Departmental capital - 380 - -

Total - 380 - - Election Commitment — Efficiency Dividend — extension (b) 4

Administered capital - - - - Departmental capital (134) (450) (602) (606)

Total (134) (450) (602) (606)

27


Progra

m2019–20

$'0002020–21

$'0002021–22

$'0002022–23

$'000Jobs and Education Data Infrastructure — mapping skills for better futures

4.1

Administered capital - - - - Departmental capital 3,303 695 - -

Total 3,303 695 - - Transition to Work — extending support for young people 4.1

Administered capital - - - - Departmental capital 515 - - -

Total 515 - - - Total capital measures (e)

Administered - - - - Departmental 3,564 263 (1,085) (1,093)

Total 3,564 263 (1,085) (1,093)Prepared on a Government Financial Statistics (fiscal) basis(a) Measure relates to a commitment identified under Appendix B included with the 2019 PEFO economic

statement.(b) Measure relates to an Election Commitment identified under Appendix A included in the Explanatory

Memorandum to 2019–20 Appropriation Bills 1 and 2.(c) The lead entity for this measure is the Department of Agriculture. The full measure description and

package details appear in MYEFO under the Agriculture portfolio.(d) Measure relates to a decision made post MYEFO.(e) Total includes PEFO decisions and Election Commitments, including the Savings Efficiency Dividend,

applied against the 2019–20 Appropriation Acts 1 and 2.(f) The lead entity for this measure is the Department of Foreign Affairs and Trade. The full measure

description and package details appear in MYEFO under the Foreign Affairs and Trade portfolio.

28


1.4 ADDITIONAL ESTIMATES, RESOURCING AND VARIATIONS TO OUTCOMES

The following tables detail the changes to the resourcing for Department of Education, Skills and Employment at Additional Estimates, by outcome. Table 1.3 details the Additional Estimates resulting from new measures and other variations since the 2019–20 Budget in Appropriation Bills Nos. 3 and 4.

29


Table 1.3: Additional estimates and other variations to outcomes since 2019–20 Budget

Program impacted

2019–20$'000

2020–21$'000

2021–22$'000

2022–23$'000

Outcome 1 Administered

Annual appropriations Bushfire Response Package -

Assisting families by exempting them from the Child Care Subsidy activity test debt for 2019-20

1.1 - 61 - -

Drought Response, Resilience and Preparedness Plan — additional support for farmers and communities in drought

1.135 - - -

Australian Children’s Education and Care Quality Authority — ongoing funding

1.1 - 3,830 2,609 2,653

Drought Response, Resilience and Preparedness Plan - Extension of Special Circumstances funding

1.4 10,000

- - -


1.4 10,000

- - -

Election Commitment — Teach for Australia Future Leaders Program — additional funding (a)

1.5 2,500 2,500 10,000 -

Election Commitment — Rural Inspire Initiative (a) 1.5 500 1,000 500 -

Election Commitment — National Phonics Check (a) 1.5 2,200 4,300 4,300 -

Flexible Literacy for Remote Primary Schools Program — extension 1.5 - - - -

Bushfire Response Package - Mental Health Support for School Communities and early childhood services

1.5 4,000 4,000 - -

Movement of Funds (net increase) 1.5 2,400 - - - Changes in Parameters (net increase) 1.4 0 111 150 176 (net decrease) 1.1,1.4,1.5 (82) (274) (393) (421)Other Variations (net increase) 1.1,1.5 1,665 1,687 1,762 2,261 (net decrease) 1.1,1.5 (675) (2,516) (965) (1,126)

Special appropriations (including Special Accounts) Bushfire Response Package -

Assisting families by exempting them from the Child Care Subsidy activity test debt for 2019-20

1.2 - 22,171 1,472 130


1.2 15,606 - - -

Changes in Parameters (net increase) 1.2 16,344 29,753 49,343 63,424 (net decrease) 1.3,1.4 (435) (27,867) (82,800) (137,479)

Other Variations (net increase) 1.2,1.3,1.4 311,411 330,335 353,074 376,994 (net decrease) 1.2,1.3,1.4 (155,095

)(161,432

)(162,330

)(186,861)

Net impact on appropriations for Outcome 1 (administered) 220,374 207,659 176,722 119,751

30


Program impacted

2019–20$'000

2020–21$'000

2021–22$'000

2022–23$'000

Outcome 1 Departmental

Annual appropriations Election Commitment — Efficiency

Dividend — extension1

(1,016) (2,884) (3,757) (3,542)Changes in Parameters (net decrease) 1 - (320) (315) (302)Other Variations (net decrease) 1 - - - -

Net impact on appropriations for Outcome 1 (departmental) (1,016) (3,204) (4,072) (3,844)Total net impact on appropriations for Outcome 1 219,358 204,455 172,650 115,907

31


Program impacted

2019–20$'000

2020–21$'000

2021–22$'000

2022–23$'000


Annual appropriations General Sir John Monash Foundation 2.3 10,000 - - - Higher Education Loan Program —

encouraging Early Childhood Teachers to work in very remote areas

2.4 - - - 2,362

Pilot Programs to Enahnce Collaboration between Universities and Industry

2.6 (2,000) (2,000)

Changes in Parameters (net decrease) 2.3, 2.6, 2.7 - (258) (414) (786)Other Variations (net increase) 2.3 1,886 - - -

Special appropriations (including Special Accounts) Election Commitment — Investing in

Regional Australia — additional Regional University Centres (a)

2.3 3,750 3,750 3,750 3,750

Election Commitment — New Central Queensland School of Mines and Manufacturing — Gladstone and Rockhampton (a)

2.3

- 13,500 15,000 1,500

Australian Children’s Education and Care Quality Authority — ongoing funding 2.3 (9,100) - - -

Pilot Programs to Enahnce Collaboration between Universities and Industry

2.62,000 2,000

FEE-HELP – increase in loan limit for aviation courses 2.4 2,730 8,245 14,021 20,190

Changes in Parameters (net increase) 2.4 84 253 347 359 (net decrease) 2.3,2.4,

2.5,2.6, 2.7 (84) (22,177) (49,508) (55,535)

Other Variations (net increase) 2.3,2.4,2.8 70,615 78,067 104,955 81,822

(net decrease)2.1, 2.2, 2.3, 2.4, 2.6, 2.7,

2.8

(260,747)

(249,934)

(211,387) (207,815)

Net impact on appropriations for Outcome 2 (administered) (180,866)

(168,554)

(123,236) (154,153)

Departmental Annual appropriations

Higher Education Loan Program — encouraging Early Childhood Teachers to work in very remote areas

2 36 36 36 36

Election Commitment — Efficiency Dividend — extension (1,099) (2,927) (3,836) (3,831)

Changes in Parameters (net decrease) 2 - (222) (216) (207)

Capital appropriations Other Variations (net decrease) 2 (1,886) 0 0 0

Net impact on appropriations for Outcome 2 (departmental) (2,949) (3,113) (4,016) (4,002)Total net impact on appropriations for Outcome 2 (183,815)

(171,667)

(127,252) (158,155)

32


Program impacted

2019–20$'000

2020–21$'000

2021–22$'000

2022–23$'000


Annual appropriations Election Commitment — Australian Apprentice Wage Subsidy Trial — expansion (a)

3.1 12,700 23,600 16,600 7,100

Election Commitment — Mid-Career Checkpoint — establishment (a)

3.1 5,000 17,500 26,250 26,250

Skills Package — strengthening the national training system

3.1 7,975 2,743 3,375 -

Improving Integrity of the Vocational and Education Training System

- 531 531 531

Movement of funds (net increase) 2.8 3,500 - - - Changes in Parameters (net increase) 3.1 - - - - (net decrease) 3.1 - (395) (566) (681)Other Variations (net increase) 3.1,3.2 1,500 - - - (net decrease) 3.1,3.2 (1,000) (1,500) (1,500) (1,500)

Special appropriations (including Special Accounts)

Changes in Parameters (net decrease) 3.2 (64) (253) (347) (359)

Other Variations (net increase) 3.1,3.2 36,145 37,622 39,492 41,671

(net decrease) 3.1,3.2 (55,640) (60,052) (58,779) (56,822)Net impact on appropriations for Outcome 3 (administered) 10,116 19,796 25,056 16,190 Departmental

Annual appropriations Improving Integrity of the Vocational and Education Training System

3 3,586 1,356 615 -

Jobs and Education Data Infrastructure — mapping skills for better futures

3 961 1,685 1,177 1,184


3 3,561 6,491 2,915 1,994

Changes in parameters (net decrease) 3 - (188) (180) (180)Other Variations (net increase) 3 2,000 1,000 1,000 1,000 (net decrease) 3 (10,000) - - -

Net impact on appropriations for Outcome 3 (departmental) 108 10,344 5,527 3,998 Total net impact on appropriations for Outcome 3 10,224 30,140 30,583 20,188

33


Program impacted

2019–20$'000

2020–21$'000

2021–22$'000

2022–23$'000


Annual appropriations Online Employment Services Trial — expansion

4.1 (2,027) (13,099) (14,140) (3,416)

Protecting Your Super Package — putting members' interest first — amendments

4.1 (132) (421) (369) (350)


4.1 (5,747) 1,480 - -

Transition to Work — extending support for young people

4.1 - (11,593) (7,848) (8,661)

Movement of Funds (net increase) 4.1 2,594 3,677 3,527 - Changes in Parameters (net increase) 4.1 4,242 4,327 2,634 4,418 (net decrease) 4.1 - - (1,209) (8,981)Other Variations (net increase) 4.1 2,236 28,892 17,619 11,636 (net decrease) 4.1 (9,175) - - -

Net impact on appropriations for Outcome 4 (administered) (8,009) 13,263 214 (5,354)Departmental

Annual appropriations Election Commitment — Efficiency

Dividend — extension (a)4 (1,717) (4,938) (6,528) (6,248)

Increasing Uptake of Workers in Australia's Pacific Labour Mobility Initiatives and Finalisation of a Horticulture Industry Labour Agreement

4 549 2,754 3,110 -

Jobs and Education Data Infrastructure — mapping skills for better futures

4 2,103 2,598 2,346 2,219

Online Employment Services Trial — expansion

4 377 1,639 1,616 -


4 782 724 - -

Transition to Work — extending support for young people

4 232 707 452 190

Capital appropriations Jobs and Education Data

Infrastructure — mapping skills for better futures

4 3,303 695 - -

Transition to Work — extending support for young people 4 515 - - -

Changes in Parameters (net decrease) 4 - (516) (511) (483)Section 75 transfers (b) (net decrease) 4 (1,083) (16,191) (16,004) (16,060)

Net impact on appropriations for Outcome 2 (departmental) 5,061 (12,528) (15,519) (20,382)Total net impact on appropriations for Outcome 4 (2,948) 735 (15,305) (25,736)

Prepared on a resourcing (i.e. appropriations available) basis.(a) Measure relates to an Election Commitment identified under Appendix A included in the Explanatory

Memorandum to 2019–20 Appropriation Bills 1 and 2.(b) Relates to the Administrative Arrangements Orders of 29 May 2019 and 5 December 2019, effective

1 February 2020, which transferred functions from the then Department of Employment, Skills, Small and Family Business to the Attorney-General's Department and Department of Industry, Science, Energy and Resources, respectively.

34


1.5 BREAKDOWN OF ADDITIONAL ESTIMATES BY APPROPRIATION BILL

The following tables detail the Additional Estimates sought for the Department of Education, Skills and Employment through Appropriation Bills Nos. 3 and 4.

Table 1.4: Appropriation Bill (No. 3) 2019–20

2018–19Available

$'000

2019–20Budget

$'000

2019–20Revised

$'000

Additional

Estimates

$'000

Reduced Estimate

s$'000

Administered items

Outcome 1 - Improved early learning, schooling, student educational outcomes and transitions to and from school through access to quality child care, support, parent engagement, quality teaching and learning environments (a)

480,011 500,436 507,779 9,600 (2,257)

Outcome 2 - Promote growth in economic productivity and social wellbeing through access to quality higher education, international education, and international quality research (a)

1,296,232 248,623 258,509 11,886 (2,000)

Outcome 3 - Promote growth in economic productivity and social wellbeing through access to quality skills and training (b)

- 371,648 388,623 17,975 (1,000)

Outcome 4 - Foster a productive an competitive labour market through policies and programs that assist job seekers into work and meet employer needs(b)

- 483,790 475,781 - (8,009)

Total administered 1,776,243

1,604,497

1,630,692 39,461 (13,266)

35


2018–19Available

$'000

2019–20Budget

$'000

2019–20Revised

$'000

Additional

Estimates

$'000

Reduced Estimate

s$'000

Departmental programs

Outcome 1 - Improved early learning, schooling, student educational outcomes and transitions to and from school through access to quality child care, support, parent engagement, quality teaching and learning environments (a)

189,230 197,067 197,067 - -

Outcome 2 - Promote growth in economic productivity and social wellbeing through access to quality higher education, international education, and international quality research (a)

171,350 97,980 98,016 36 -

Outcome 3 - Promote growth in economic productivity and social wellbeing through access to quality skills and training (b)

- 57,210 57,318 10,108 (10,000)

Outcome 4 - Foster a productive an competitive labour market through policies and programs that assist job seekers into work and meet employer needs (b)

- 138,715 141,675 4,900 (1,940)

Total departmental 360,580 490,972 494,076 15,044 (11,940)Total administered and departmental

2,136,823

2,095,469

2,124,768 54,505 (25,206)

(a) The 2019–20 Budget reflects appropriations transferred under Section 75 of the Public Governance Performance and Accountability Act 2013 (PGPA Act) following the Administrative Arrangements Order of 29 May 2019.

(b) Reflects the interim transfer of appropriations under Section 75 of the Public Governance Performance and Accountability Act 2013 (PGPA Act) following the Administrative Arrangements Order 5 December 2019, effective from 1 February 2020. Pending finalisation, further transfers and movements will be reported in future Portfolio Budget publications.

36



2018–19Available

$'000

2019–20Budget

$'000

2019–20Revised

$'000

Additional

Estimates

$'000

Reduced Estimate

s$'000

Payments to states, ACT, NT and local government

Outcome 1 - Improved early learning, schooling, student educational outcomes and transitions to and from school through access to quality child care, support, parent engagement, quality teaching and learning environments

62,514 96,243 116,243 20,000 -

Total payments to states, ACT, NT and local government 62,514 96,243 116,243 20,000 -

Non-operating Equity injections (a) 9,210 25,107 26,039 3,818 (2,886)

Total non-operating 9,210 25,107 26,039 3,818 (2,886)Total other services 71,724 121,350 142,282 23,818 (2,886)

(a) The 2019–20 Budget includes the interim transfer of appropriations under Section 75 of the Public Governance Performance and Accountability Act 2013 (PGPA Act) following the Administrative Arrangements Order 5 December 2019, effective from 1 February 2020. Pending finalisation, further transfers and movements will be reported in future Portfolio Budget publications.

37


Section 2: Revisions to outcomes and planned performance

2.1 CHANGES TO OUTCOME AND PROGRAM STRUCTURES

Table 2: Changes to the outcome and program structures since the last portfolio statementThe outcome structure of the department has changed since the publication of the Portfolio Budget Statements 2019–20 for the Education and Training Portfolio

The previously published ‘Program 2.8: Building Skills and Capability’ is no longer covered by Outcome 2 since the Administrative Arrangements Order of 29 May 2019 transferred responsibility for skills and training to the Department of Employment, Skills, Small and Family Business (Figure 2 and 3).

The Administrative Arrangements Order of 5 December 2019, effective from 1 February 2020, transferred responsibility for skills and employment to the department. These responsibilities are now shown as Outcomes 3 and 4 (Figure 2 and 3).Figure 2: Changes to OutcomesOutcome 1Improved early learning, schooling, student educational outcomes and transitions to and from school through access to quality child care, support, parent engagement, quality teaching and learning environments.

Description of change: There has been no change to outcome 1.

New Outcome 2Promote growth in economic productivity and social wellbeing through access to quality higher education, international education and international quality research.

Description of change: Outcome 2 changed to reflect the Administrative Arrangements Order of 29 May 2019 transferring responsibility for skills and training to the Department of Employment, Skills, Small and Family Business.

Old Statement: Promote growth in economic productivity and social wellbeing through access to quality higher education, international education, and international quality research, skills and training.

New Outcome 3Promote growth in economic productivity and social wellbeing through access to quality skills and training.

Description of change: Transferred from the Department of Employment, Skills, Small and Family Business by the Administrative Arrangements Order of 5 December 2019 – effective from 1 February 2020.

New Outcome 4Foster a productive and competitive labour market through policies and programs that assist job seekers into work and meet employer needs.

38


Description of change: Transferred from the Department of Employment, Skills, Small and Family Business by the Administrative Arrangements Order of 5 December 2019 – effective from 1 February 2020.

39


Figure 3: Changes to programsProgram number

Program title Description of change

2.8 Building Skills and Capability Transferred to the Department of Employment, Skills, Small and Family Business by the Administrative Arrangements Order of 29 May 2019.

3.1 Building Skills and Capability Transferred from the Department of Employment, Skills, Small and Family Business by the Administrative Arrangements Order of 5 December 2019 – effective from 1 February 2020.

3.2 VET Student Loans Transferred from the Department of Employment, Skills, Small and Family Business by the Administrative Arrangements Order of 5 December 2019 – effective from 1 February 2020.

4.1 Employment Services Transferred from the Department of Employment, Skills, Small and Family Business by the Administrative Arrangements Order of 5 December 2019 – effective from 1 February 2020.

40


2.2 BUDGETED EXPENSES AND PERFORMANCE FOR OUTCOME 1

Outcome 1: Improved early learning, schooling, student educational outcomes and transitions to and from school through access to quality child care, support, parent engagement, quality teaching and learning environments.

Linked programs

Services Australia

Programs Program 1.1 - Services to the Community - Social Security and Welfare

Contribution to Outcome 1 made by linked programs

The linked program contributes to Outcome 1 by administering child care payments to eligible families.

Department of the Prime Minister and Cabinet

Programs Program 2.1 - Jobs, Land and Economy Program 2.2 - Children and Schooling


The linked programs contribute to Outcome 1 by supporting school attendance, improved educational outcomes and access to further education, training and employment for Indigenous students.

Department of the Treasury

Programs Program 1.9 - National Partnership Payments to the States


The linked program contributes to Outcome 1 by making National Partnership Payments to the States.

41


Budgeted expenses for Outcome 1

This table shows how much the department intends to spend (on an accrual basis) on achieving the outcome, broken down by program, as well as by Administered and Departmental funding sources.

Table 2.2.1 Budgeted expenses for Outcome 1

2018–19Actual

expenses

$'000

2019–20Revised

estimated expenses

$'000

2020–21Forwardestimate

$'000


$'000


$'000Program 1.1: Support for the Child Care System

Administered expenses Ordinary annual services (Appropriation Act No. 1 and Bill No. 3) 268,453 342,730 339,824 345,461 353,227

Total expenses for program 1.1 268,453 342,730 339,824 345,461 353,227 Program 1.2: Child Care Subsidy Special appropriations A New Tax System (Family Assistance) (Administration) Act 1999

7,440,349 8,317,163 8,676,524 9,114,217 9,636,439

Total expenses for program 1.2 7,440,349 8,317,163 8,676,524 9,114,217 9,636,439 Program 1.3: Government Schools National Support

Administered expenses Other services (Appropriation Act No. 2 and Bill No. 4) 4,987 8,575 12,804 14,242 12,263

Special appropriations Australian Education Act 2013 7,677,423 8,317,253 8,977,841 9,634,161 10,327,015 Total expenses for program 1.3 7,682,410 8,325,828 8,990,645 9,648,403 10,339,278 Program 1.4: Non-Government Schools National Support

Administered expenses Other services (Appropriation Act No. 2 and Bill No. 4) 56,926 75,468 206,827 151,024 126,708

Special appropriations

Australian Education Act 2013 12,022,639 12,757,635 13,559,881 14,333,21

4 15,088,914

Total expenses for program 1.4 12,079,565 12,833,103 13,766,708 14,484,23

8 15,215,622

Program 1.5: Early Learning and Schools Support


Other services (Appropriation Act No. 2 and Bill No. 4) 2,000 32,200 2,000 2,000 2,000

Special accounts SOETM - Students with Disabilities 81 - - - - Total expenses for program 1.5 142,952 168,133 109,406 94,873 59,088 Outcome 1 Totals by appropriation type

42


2018–19Actual

expenses

$'000

2019–20Revised

estimated expenses

$'000


$'000


$'000


$'000Administered expenses Ordinary annual services (Appropriation Act No. 1 and Bill No. 3) 409,324 478,663 447,230 438,334 410,315

Other services (Appropriation Act No. 2 and Bill No. 4) 63,913 116,243 221,631 167,266 140,971

Special appropriations 27,140,411 29,392,051 31,214,246 33,081,59

2 35,052,368

Special accounts 81 - - - -

Administered total 27,613,729 29,986,957 31,883,107 33,687,19

2 35,603,654

Departmental expenses Departmental appropriation 168,772 160,002 146,847 143,686 136,480 s74 External Revenue (a) 8,105 8,443 8,220 8,220 8,220 Expenses not requiring appropriation in the Budget year (b) 10,201 28,367 28,875 29,403 29,951

Departmental total 187,078 196,812 183,942 181,309 174,651

Total expenses for Outcome 1 27,800,807 30,183,769 32,067,049 33,868,50

1 35,778,305

Table 2.1.1 Budgeted expenses for Outcome 1 (continued)

Movement of administered funds between years (c)

2018–19Actual

expenses

$'000

2019–20Revised

estimated expenses

$'000


$'000


$'000


$'000Outcome 1:

Mobile Musical Education Program (2,400) 2,400 - - - Total movement of administered funds (2,400) 2,400 - - - 2018–19 2019–20Average staffing level (number) 820 845

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

(a) Estimated expenses incurred in relation to receipts retained under section 74 of the PGPA Act 2013.(b) Expenses not requiring appropriation in the Budget year are made up of depreciation expenses,

amortisation expenses, make good expenses and audit fees.(c) Figures displayed as a negative (-) represent a decrease in funds and a positive (+) represent an

increase in funds.

43


Program performance for Outcome 1

There have been no changes to performance criteria for Outcome 1 resulting from decisions made since the 2019–20 Budget. For a full outline of all performance criteria associated with Outcome 1 see the Education and Training Portfolio Budget Statements 2019–20 and the Department of Education Corporate Plan 2019–20. This section includes further detail on the program expenses associated with Outcome 1.

Program expenses 1.1 Support for the Child Care System 2018–19

Actualexpenses

$'000

2019–20Revised

estimated expenses

$'000


$'000


$'000


$'000

Annual administered expenses: Ordinary annual services (Appropriation

Act No. 1 and Bill No. 3) Child Care Services Support 267,768 342,730 339,824 345,461 353,227 Jobs Education and Training, Child

Care Fee Assistance (JETCCFA)(599) - - - -

Child Care Subsidy Communications Campaign

87 - - - -

Special account expenses:

Early Years Quality Fund Special Account Act 2013

1,186 - - - -

SOETM - Child Care 11 - - - - Total program expenses 268,453 342,730 339,824 345,461 353,227

Program expenses 1.2 Child Care Subsidy 2018–19

Actualexpenses

$'000

2019–20Revised

estimated expenses

$'000


$'000


$'000


$'000Special appropriations:

A New Tax System (Family Assistance) (Administration) Act 1999 (a) 7,440,349 8,317,163 8,676,524 9,114,217 9,636,439

Total program expenses 7,440,349 8,317,163 8,676,524 9,114,217 9,636,439 (a) This program commenced 02 July 2018 and replaces the Child Care Benefit and Child Care Rebate

programs.

Program expenses 1.3 Government Schools National Support 2018–19

Actualexpenses

$'000

2019–20Revised

estimated expenses

$'000


$'000


$'000


$'000Annual administered expenses:

Other services (Appropriation Act No. 2 and Bill No. 4)

Additional Support for Northern Territory 4,987 8,575 12,804 14,242 12,263


Australian Education Act 2013 7,677,423 8,317,253 8,977,841 9,634,161 10,327,015

Total program expenses 7,682,410 8,325,828 8,990,645 9,648,403 10,339,27

8

44


Program expenses 1.4 Non-Government Schools National Support 2018–19

Actualexpenses

$'000

2019–20Revised

estimated expenses

$'000


$'000


$'000



Other services (Appropriation Act No. 2 and Bill No. 4)

Non-Government Representative Bodies 41,794 40,013 40,013 40,013 14,004

Special Circumstances Funding(a) 4,640 22,997 1,606 1,632 1,660 Adjustment Assistance 10,492 12,458 9,131 1,676 - Choice and Affordability Fund - - 156,077 107,703 111,044


Australian Education Act 2013 12,022,639

12,757,635

13,559,881

14,333,214

15,088,914

Total program expenses 12,079,56

5 12,833,10

3 13,766,70

8 14,484,23

8 15,215,62

2 (a) Previously published as Short Term Emergency Assistance, known as Special Circumstances

Funding as per the Australian Education Act 2013.

45


Program expenses 1.5 Early Learning and Schools Support 2018–19

Actualexpenses

$'000

2019–20Revised

estimated expenses

$'000


$'000


$'000



Ordinary annual services (Appropriation Act No. 1 and Bill No. 3)

Australian Early Development Census 10,581 4,410 12,196 10,327 6,502

Australian Government Response to TEMAG 3,700 - - - -

Boost the Learning for Life Program 13,800 18,400 - - -

Early Learning Languages Australia (ELLA) 4,177 5,021 1,470 - -

English Language Learning for Indigenous Children (ELLIC) 1,855 2,030 1,084 - -

Flexible Literacy Learning for Remote Primary Schools 2,196 1,800 750 - -

Future Leaders Program - 2,500 2,500 10,000 - Grants and Awards 1,346 1,372 1,393 1,415 1,439 Helping Children with Autism 5,899 5,982 6,072 6,169 6,274 High Achieving Teachers Program - 3,500 7,150 5,900 2,250 Inspiring all Australians in Digital

Literacy and STEM 16,021 15,350 - - -

Mental Health Support for School Communities and Early Childhood Services

- 4,000 4,000 - -

National Assessment Reform 2,200 2,200 2,200 2,200 2,200 National Schools Reform 12,698 16,877 17,141 12,262 - National School Resourcing Board 465 936 950 966 983 Quality Outcomes 47,991 37,997 35,451 34,259 34,066 Quality Schools Communication 7,739 - - - - Science, Technology, Engineering

and Mathematics (STEM) 1,617 625 617 550 550

Teach for Australia 7,118 2,145 2,145 - - Universal Access 1,468 1,800 3,280 - - Delivering Respect Matters - 1,500 500 500 - Life Education - Being Healthy, Being

Active - 3,100 1,200 700 -

Attendance Strategies For Early Learning - 642 275 - -

Mathematics Massive Open Online Courses - 1,046 1,732 2,825 2,824

Rural Inspire Initiative - 500 1,000 500 - National Phonics Check - 2,200 4,300 4,300 - Other services

(Appropriation Bill No. 2)

Literacy Support for Tasmanian Students 2,000 2,000 2,000 2,000 2,000

Local School Community Fund - 30,200 - - - Special account expenses:

SOETM - Students with Disabilities 81 - - - - Total program expenses 142,952 168,133 109,406 94,873 59,088

46



Outcome 2: Promote growth in economic productivity and social wellbeing through access to quality higher education, international education and international quality research.

Linked programs

Australian Trade and Investment Commission (Austrade)

Programs Program 1.1 - Promotion of Australia's export and other international economic interests


The linked program contributes to Outcome 2 by promoting the Australian education sector in international markets.

Department of Foreign Affairs and Trade

Programs Program 1.4 - New Colombo Plan - Transforming Regional Relationships Program 1.7 - Public Information Services and Public Diplomacy


The linked programs contribute to Outcome 2 by promoting international education through advocacy and coordination roles at overseas missions.

Department of Home Affairs

Programs Program 2.3 - Visas


The linked program contributes to Outcome 2 by supporting a sustainable international education sector through administering student visas.

Services Australia

Programs Program 1.1 - Services to the Community - Social Security and Welfare


The linked program contributes to Outcome 2 by making payments to eligible job seekers.

47


Department of Social Services

Programs Program 1.11 - Student Payments


The linked program contributes to Outcome 2 by providing financial support to individuals and families to undertake further education. This also includes enhancing educational outcomes for Australian Indigenous students by increasing their access and participation in further education.

Department of the Prime Minister and Cabinet

Programs Program 2.1 - Jobs, Land and Economy Program 2.2 - Children and Schooling


The linked programs contributes to Outcome 2 by supporting school attendance, improved educational outcomes and access to further education and employment for Indigenous students.

Department of the Treasury

Programs Program 1.9 - National Partnership Payments to the States


The linked program contributes to Outcome 2 by making National Partnership Payments to the States.

48





2018–19Actual

expenses

$'000

2019–20Revised

estimated expenses

$'000


$'000


$'000


$'000Program 2.1: Commonwealth Grant Scheme

Administered expenses Special appropriations Higher Education Support Act 2003 7,024,026 7,155,050 7,338,261 7,460,582 7,573,482

Total expenses for program 2.1 7,024,026 7,155,050 7,338,261 7,460,582 7,573,482 Program 2.2: Higher Education Superannuation Program

Administered expenses Special appropriations Higher Education Support Act 2003 1,094,199 134,647 129,390 123,381 117,082

Total expenses for program 2.2 1,094,199 134,647 129,390 123,381 117,082

Program 2.3: Higher Education Support

Administered expenses Ordinary annual services (Appropriation Act No. 1 and Bill No. 3)

22,299 42,944 27,210 23,412 18,377

Special appropriations Higher Education Support Act 2003 398,864 389,983 480,021 531,443 492,711

Special accounts Education Investment Fund - Higher Education 2,000 - - - -

Total expenses for program 2.3 423,163 432,927 507,231 554,855 511,088 Program 2.4: Higher Education Loan Program

Administered expenses Special appropriations Higher Education Support Act 2003 21,626 1,009,794 1,035,895 1,041,792 1,274,350

VET Student Loans Act 2016 6 - - - - Special accounts HELP Tuition Protection Fund - 945 2,103 2,193 2,277 Total expenses for program 2.4 21,632 1,010,739 1,037,998 1,043,985 1,276,627

49


2018–19Actual

expenses

$'000

2019–20Revised

estimated expenses

$'000


$'000


$'000


$'000Program 2.5: Investment in Higher Education Research

Administered expenses Special appropriations Higher Education Support Act 2003 1,921,099 1,938,390 1,973,279 2,012,781 2,056,046

Total expenses for program 2.5 1,921,099 1,938,390 1,973,279 2,012,781 2,056,046

Program 2.6: Research Capacity Administered expenses Ordinary annual services (Appropriation Act No. 1 and Bill No. 3)

162,472 179,905 237,443 253,188 394,899

Special appropriations Higher Education Support Act 2003 5,447 10,221 7,824 5,262 5,372

Total expenses for program 2.6 167,919 190,126 245,267 258,450 400,271 Program 2.7: International Education Support


Special accounts Overseas Student Tuition Fund 2,940 7,644 7,633 8,015 8,416 SOETM - Cheung Kong 870 - - - - Total expenses for program 2.7 26,829 41,804 35,172 33,646 32,323 Program 2.8: Building Skills and Capability (a)


926,497 - - - -

Special appropriations Trade Support Loans Act 2014 1,385 - - - - Special accounts Growth Fund Skills and Training 17,446 - - - - Services for Other Entities and Trust Monies – National Training System Commonwealth Own-Purpose Expenses VET employer survey

107 - - - -

Total expenses for program 2.7 945,435 - - - -

50


2018–19Actual

expenses

$'000

2019–20Revised

estimated expenses

$'000


$'000


$'000


$'000Outcome 2 Totals by appropriation type


1,134,287 257,009 292,192 302,231 437,183

Special appropriations 10,466,652 10,638,085 10,964,670 11,175,241 11,519,043

Special accounts 23,363 8,589 9,736 10,208 10,693

Administered total 11,624,302 10,903,683 11,266,598 11,487,680 11,966,919

Departmental expenses Departmental appropriation 190,832 83,444 83,492 81,319 76,654 s74 External Revenue (b) 9,513 13,875 5,038 5,038 5,038 Special accounts - USI 3,998 - - - - Expenses not requiring appropriation in the Budget year (c) 17,181 29,385 29,983 30,601 31,243

Departmental total 221,524 126,704 118,513 116,958 112,935

Total expenses for Outcome 2 11,845,826 11,030,387 11,385,111 11,604,638 12,079,854

2018–19 2019–20Average staffing level (number) 815 444


(a) Due to the Administrative Arrangement Orders of 29 May 2019 and 5 December 2019, the revised budget and forward estimates are reported under Outcome 3 Building Skills and Capability.

(b) Estimated expenses incurred in relation to receipts retained under section 74 of the PGPA Act 2013.(c) Expenses not requiring appropriation in the Budget year are made up of depreciation expenses,

amortisation expenses, make good expenses and audit fees.

51



There have been no changes to performance criteria for Outcome 2 resulting from decisions made since the 2019–20 Budget. For a full outline of all performance criteria associated with Outcome 2 see the Education and Training Portfolio Budget Statements 2019–20 and the Department of Education Corporate Plan 2019–20. This section includes further detail on the program expenses associated with Outcome 2.

Program expenses 2.1 Commonwealth Grant Scheme

2018–19Actual

expenses

$'000

2019–20Revised

estimated expenses

$'000


$'000


$'000



Higher Education Support Act 2003 Cluster Fund and Place Loadings 6,950,952 7,080,624 7,262,495 7,383,299 7,494,538 Regional Loading 73,074 74,426 75,766 77,283 78,944


Program expenses 2.2 Higher Education Superannuation Program

2018–19Actual

expenses

$'000

2019–20Revised

estimated expenses

$'000


$'000


$'000



Higher Education Support Act 2003 Higher Education Superannuation

Program 1,094,199 134,647 129,390 123,381 117,082

Total program expenses 1,094,199 134,647 129,390 123,381 117,082

52


Program expenses 2.3 Higher Education Support

2018–19Actual

expenses

$'000

2019–20Revised

estimated expenses

$'000


$'000


$'000




General Sir John Monash Foundation - 10,000 - - - National Disability Coordination

Officer 4,385 4,370 4,431 4,497 4,569

Quality Indicators for Learning and Teaching 5,142 8,935 9,026 9,162 9,308

Rural and Regional Enterprise Scholarships 12,772 17,753 13,753 9,753 4,500

Tertiary Learning Repository - 1,886 - - - Special appropriations:

Higher Education Support Act 2003 Central Coast Health and

Wellbeing Precinct 3,750 2,500 2,500 2,500 1,250

New Central Queensland School of Mines and Manufacturing — Gladstone and Rockhampton

- - 13,500 15,000 1,500

Collaboration Pilots - Industry 4.0 - 1,096 946 - - Collaboration Pilots - Naval Shipbuilding - 1,907 1,707 - - Disability Support Program 7,570 7,712 7,851 8,008 8,180 Howard Library 13,500 - - - - Higher Education Partnerships and

Participation Program 142,567 119,668 183,271 196,248 206,919

Improved Support for Regional Universities 7,789 11,060 8,336 8,146 8,250

Jobs and Growth in Tasmania - 8,000 30,000 65,000 25,000 National Institutes 222,586 226,728 230,789 235,409 240,469 Quality Initiatives 502 512 521 532 543 Supporting more women into STEM

Careers (AMSI Intern) - 10,200 - - -

Teaching Awards - Universities Australia 600 600 600 600 600

Special account expenses: Education Investment Fund -

Higher Education 2,000 - - - -

Total program expenses 423,163 432,927 507,231 554,855 511,088

53


Program expenses 2.4 Higher Education Loan Program

2018–19Actual

expenses

$'000

2019–20Revised

estimated expenses

$'000


$'000


$'000



Special appropriations: Higher Education Support Act 2003 Higher Education Loan Program 21,626 1,009,794 1,035,895 1,041,792 1,274,350 VET Student Loans Act 2016 VET Student Loans (a) 6 - - - -

Special account expenses: HELP Tuition Protection Fund - 945 2,103 2,193 2,277 Total program expenses 21,632 1,010,739 1,037,998 1,043,985 1,276,627

(a) Due to the Administrative Arrangement Order of 29 May 2019, actual expenses are also reported in the 2018–19 Department of Employment, Skills, Small and Family Business annual report.

Program expenses 2.5 Investment in Higher Education Research

2018–19Actual

expenses

$'000

2019–20Revised

estimated expenses

$'000


$'000


$'000



Higher Education Support Act 2003 Research Support Program 894,015 902,062 918,298 936,681 956,815 Research Training Program 1,027,084 1,036,328 1,054,981 1,076,100 1,099,231


Program expenses 2.6 Research Capacity

2018–19Actual

expenses

$'000

2019–20Revised

estimated expenses

$'000


$'000


$'000




National Collaborative Research Infrastructure Strategy 162,472 179,905 237,443 253,188 394,899

Special appropriations: Higher Education Support Act 2003 Academic Centres of Cyber

Security Excellence 479 488 - - -

Collaboration Pilots - Warrnambool Hydrogen Transition Centre - 1,000 1,000 - -

Collaboration Pilots - Nowra Agribusiness Innovation Hub - 1,000 1,000 - -

Higher Education Research Promotion 4,968 5,058 5,149 5,262 5,372 Stawell Underground Physics

Laboratory - 2,675 675 - -


54


Program expenses 2.7 International Education Support

2018–19Actual

expenses

$'000

2019–20Revised

estimated expenses

$'000


$'000


$'000




International Education Support 23,019 34,160 27,539 25,631 23,907 Special account expenses:

Overseas Student Tuition Fund 2,940 7,644 7,633 8,015 8,416 SOETM - Cheung Kong 870 - - - -


Program expenses 2.8 Building Skills and Capability (a)

2018–19Actual

expenses

$'000

2019–20Revised

estimated expenses

$'000


$'000


$'000


$'000Sub-program 2.8.1: Industry Competitiveness

Annual administered expenses: Ordinary annual services (Appropriation Act No. 1 and Bill No. 3)

Industry Skills Fund 125 - - - - National Workforce Development Fund 1 - - - - Sub-program 2.8.2: Skills Development Annual administered expenses: Ordinary annual services (Appropriation Act No. 1 and Bill No. 3)

Australian Apprenticeship Support Network 138,102 - - - -

Incentives for Australian Apprenticeships 357,163 - - - - Industry Specialist Mentoring for Australian Apprentices 27,636 - - - -

Trades Recognition Australia 6,551 - - - - South Australian Enterprise Scholarships 4,365 - - - -

Rollout Skills Checkpoint for Older Workers Program 3,280 - - - -

Special appropriations: Trade Support Loans Act 2014 Trade Support Loans 1,385 - - - - Special account expenses: Growth Fund Skills and Training (b) 17,446 - - - -

55


2018–19Actual

expenses

$'000

2019–20Revised

estimated expenses

$'000


$'000


$'000


$'000Sub-program 2.8.3: Access to Training Annual administered expenses: Ordinary annual services (Appropriation Act No. 1 and Bill No. 3)

Adult Migrant English Program (c) 225,698 - - - - Skills for Education and Employment Program 88,535 - - - -

Sub-program 2.8.4: Support for the National Training System


Australian Industry and Skills Committee 1,258 - - - -

Industry Workforce Training 40,740 - - - - My Skills Website 562 - - - - National Centre for Vocational Education Research 686 - - - -

National Training System COPE 30,741 - - - - Licensing of International Vocational Education and Training (VET) courses

1,054 - - - -

Special account expenses: Services for Other Entities and Trust Monies – National Training System Commonwealth Own-Purpose Expenses VET employer survey

107 - - - -

Total program expenses 945,435 - - - - (a) Due to the Administrative Arrangements Orders of 29 May 2019 and 5 December 2019, effective

1 February 2020, the revised budget and forward estimates are published under Outcome 3.(b) This special account is funded by Annual Appropriation Bill (No. 1) and receipts from Independent

Sources. (c) Due to the Administrative Arrangement Order of 29 May 2019, this program was transferred to the

Department of Home Affairs.

56



Outcome 3: Promote growth in economic productivity and social wellbeing through access to quality skills and training.

Linked programs

Department of Home Affairs Programs

Program 2.3 – VisasContribution to Outcome 3 made by linked programsThe linked program contributes to Outcome 3 by supporting a sustainable international education sector through administering student visas.

Services Australia Programs

Program 1.1 – Services to the Community – Social Security and WelfareContribution to Outcome 3 made by linked programsThe linked program contributes to Outcome 3 by making payments to eligible job seekers participating in foundation skills program.

Department of the Treasury Programs

Program 1.9 – National Partnership Payments to the StatesContribution to Outcome 3 made by linked programsThe linked program contributes to Outcome 3 by making National Partnership Payments to the States.

57




Table 2.4.1 Budgeted expenses for Outcome 3(a)(b)

2018–19Actual

expenses

$'000

2019–20Revised

estimated expenses

$'000


$'000


$'000


$'000Program 3.1: Building Skills and Capability

Administered expenses Ordinary annual services (Appropriation Act No. 1 and Bill No. 3) - 846,727 928,974 974,208 1,041,193

Special appropriations (b) Trade Support Loans Act 2014 - 35,301 36,467 37,716 38,986 Special accounts Growth Fund Skills and Training Special Account 2015 - 22,348 - - -

SOETM - National Training System Commonwealth Own-Purpose Expenses VET employer survey

- - - - -

Total expenses for program 3.1 - 904,376 965,441 1,011,924 1,080,179

Program 3.2: VET Student Loans Administered expenses Ordinary annual services (Appropriation Act No. 1 and Bill No. 3) - - - - -

Special appropriations (b) VET Student Loans Act 2016 - 120,797 132,583 134,065 150,984 Special accounts Tuition Protection Fund 2,542 1,259 1,351 1,447 Total expenses for program 3.2 - 123,339 133,842 135,416 152,431 Outcome 3 Totals by appropriation type Administered expenses Ordinary annual services (Appropriation Act No. 1 and Bill No. 3) - 846,727 928,974 974,208 1,041,193

Special appropriations - 156,098 169,050 171,781 189,970 Special accounts - 24,890 1,259 1,351 1,447

Administered total - 1,027,715 1,099,283 1,147,340 1,232,610 Departmental expenses Departmental appropriation - 105,620 99,385 90,428 88,571 s74 External Revenue (c) - 15,952 15,952 15,952 15,952 Special accounts - 5,837 5,273 5,190 5,278 Expenses not requiring appropriation in the Budget year (d) - 5,835 6,138 6,239 6,355

Departmental total - 133,244 126,748 117,809 116,156 Total expenses for Outcome 3 - 1,160,959 1,226,031 1,265,149 1,348,766

58


2018–19Actual

expenses

$'000

2019–20Revised

estimated expenses

$'000


$'000


$'000


$'000Movement of administered funds between years (e) Outcome 3: Skills for Education and Employment (2,000) 2,000 - - - Trades Recognition Australia (1,500) 1,500 - - - Total movement of administered fund (3,500) 3,500 - - - 2018–19 2019–20Average staffing level (number) - 587


(a) Due to the Administrative Arrangement Order of 29 May 2019, actual expenses and ASL for the period 1 July 2018 to 30 June 2019 are reported under Outcome 2 - Program 2.8 Building Skills and Capability.

(b) The revised budget and forward estimates reflects the full year effect of functions transferred following the Administrative Arrangements Order of 5 December 2019, effective 1 February 2020.

(c) Due to the Administrative Arrangement Order of 29 May 2019, actual expenses for the period 1 July 2018 to 30 June 2019 are reported in the 2018-19 Department of Employment, Skills, Small and Family Business annual report.

(c) Estimated expenses incurred in relation to receipts retained under section 74 of the PGPA Act 2013.(d) Expenses not requiring appropriation in the Budget year are made up of depreciation / amortisation

expenses, make good expenses and audit fees.(e) Figures displayed as a negative (-) represent a decrease in funds and a positive (+) represent an increase in

funds.

59



There have been no changes to performance criteria for Outcome 3 resulting from decisions made since the 2019–20 Budget. For a full outline of all performance criteria associated with Outcome 3 see the Education and Training Portfolio Budget Statements 2019–20 and the Department of Employment, Skills, Small and Family Business Corporate Plan 2019–20. This section includes further detail on the program expenses associated with Outcome 3.

Program expenses 3.1 Building Skills and Capability(a)(b)

2018–19Actual

expenses

$'000

2019–20Revised

estimated expenses

$'000


$'000


$'000


$'000Sub-program 3.1.1: Industry Competitiveness Annual administered expenses: Ordinary annual services (Appropriation Act No. 1 and Bill No. 3)

Industry Skills Fund - - - - - Total component 3.1.1 expenses - - - - - Sub-program 3.1.2: Skills Development Annual administered expenses: Ordinary annual services (Appropriation Act No. 1 and Bill No. 3)

Australian Apprenticeship Centres - 189,447 189,447 189,447 189,447 Australian Apprenticeship Incentives Program - 404,783 429,668 439,286 439,995

Trade Recognition Australia - 29,361 31,344 35,351 35,351 South Australian Enterprise Scholarships - 2,482 4,213 - - Rollout Skills Checkpoint for Older Workers Program - 3,929 3,984 4,040 4,105

Commonwealth Scholarships Program for Young Australians - 2,882 2,648 2,648 -

VET Information Strategy - 1,606 1,628 957 872 Industry Training Hubs - 1,282 12,818 12,818 14,818 Additional Identified Skills Shortages Payment - 1,112 18,689 49,484 86,498

National Rugby League's VET Apprenticeship Awareness Program - 350 - - -

Special appropriations: Trade Support Loans Act 2014 Trade Support Loans (b) - 35,301 36,467 37,716 38,986 Special account expenses: Growth Fund Skills and Training Special Account 2015 (c) - 22,348 - - -

Total component 3.1.2 expenses - 694,883 730,906 771,747 810,072

60


2018–19Actual

expenses

$'000

2019–20Revised

estimated expenses

$'000


$'000


$'000


$'000Sub-program 3.1.3: Access to Training Annual administered expenses: Ordinary annual services (Appropriation Act No. 1 and Bill No. 3)

National Career Education Strategy - 500 - - - Adult Migrant English Program - - - - - Skills for Education and Employment Program - 90,964 90,913 93,683 124,447

Foundation Skills for Your Future - 7,139 14,283 14,283 14,283 Remote Communities Pilots - Foundation Skills for Your Future - 1,622 3,290 3,336 -

Total component 3.1.3 expenses - 100,225 108,486 111,302 138,730 Sub-program 3.1.4: Support for the National Training System


Industry Workforce Training - 39,218 39,620 40,210 49,215 My Skills Website - 569 577 586 595 National Centre for Vocational Education Research - 696 706 717 728

National Training System COPE - 34,907 38,591 34,601 33,936 Australian Industry and Skills Committee - 1,512 1,532 1,555 1,580 Licensing of International Vocational Education and Training (VET) courses - 1,193 1,193 1,193 1,193

Integrated Information Service - 1,774 1,799 1,827 1,856 National Career Institute and Ambassador - 429 4,905 5,041 4,920 National Skills Commission - 4,065 3,985 3,700 4,065 Skills Organisation Pilots - 12,818 15,641 13,195 7,039 Special account expenses: SOETM - National Training System Commonwealth Own-Purpose Expenses VET employer survey

- - - - -

Total component 3.1.4 expenses - 97,181 108,549 102,625 105,127 Mid-Career Checkpoint Data Entry - 5,000 17,500 26,250 26,250 Skills Communication Campaign - 7,087 - - - Total program expenses - 904,376 965,441 1,011,924 1,080,179

(a) Due to the Administrative Arrangement Order of 29 May 2019, actual expenses for the period 1 July 2018 to 30 June 2019 are reported in Outcome 2, Program 2.8 Building Skills and Capability.


(c) Due to the Administrative Arrangement Order of 29 May 2019, actual expenses for the period 1 July 2018 to 30 June 2019 are reported in the 2018–19 Department of Employment, Skills, Small and Family Business annual report.

(d) This special account is funded by Annual Appropriation Bill (No.1) and receipts from Independent Sources.

61


Program expenses 3.2 VET Student Loans(a)(b)

2018–19Actual

expenses

$'000

2019–20Revised

estimated expenses

$'000


$'000


$'000



Special appropriations: VET Student Loans Act 2016 VET Student Loans (c) - 120,797 132,583 134,065 150,984

Special account expenses: VSL Tuition Protection Fund Special

Account - 2,542 1,259 1,351 1,447

Total program expenses - 123,339 133,842 135,416 152,431 (a) Due to the Administrative Arrangement Order of 29 May 2019, actual expenses for the period

1 July 2018 to 30 June 2019 are reported in Outcome 2, Program 2.8 Building Skills and Capability. (b) The revised budget and forward estimates reflects the full year effect of functions transferred following

the Administrative Arrangements Order of 5 December 2019, effective 1 February 2020.(c) Due to the Administrative Arrangement Order of 29 May 2019, actual expenses for the period

1 July 2018 to 30 June 2019 are reported in the 2018-19 Department of Employment, Skills, Small and Family Business annual report.

62



Outcome 4: Foster a productive and competitive labour market through policies and programs that assist job seekers into work and meet employer needs.

Linked programs

Services AustraliaPrograms

Program 1.1 – Services to the Community – Social Security and WelfareContribution to Outcome 4 made by linked programsServices Australia makes payments on behalf of the Department of Education, Skills and Employment.

Department of Social ServicesPrograms

Program 1.10 – Working Age PaymentsContribution to Outcome 4 made by linked programsEmployment services, such as jobactive, are closely linked to the Social Services portfolio through providing means in which job seekers receiving working age income support can meet their mutual obligation requirements and also providing services to help those job seekers to find work.

Department of Home AffairsPrograms

Program 2.3 – VisasContribution to Outcome 4 made by linked programsThe Department of Home Affairs seeks to advance Australia’s economic interests and respond to Australia’s changing security, economic, cultural and social needs through the effective management and delivery of temporary entry programs. The Seasonal Worker Programme, administered by the Department of Education, Skills has links to the temporary entry programs.



63



2018–19Actual

expenses

$'000

2019–20Revised

estimated expenses

$'000


$'000


$'000


$'000Program 4.1: Employment Services Annual administered expenses: Ordinary annual services (Appropriation Act No. 1 and Bill No. 3)

Jobactive - 1,269,287 1,284,492 1,255,165 1,308,120 Empowering Youth Initiatives - 50 - - - Transition to Work - 138,301 147,087 148,631 148,551 Time to Work - 3,257 3,401 - - ParentsNext - 83,203 90,131 90,137 90,137 Jobs Communication Campaign - 323 - - - Skills and Training Incentive - 6,535 3,340 - - Entrepreneurship Facilitators - 5,027 5,027 4,927 - Regional Employment Trials - 9,465 - - - Career Revive Initiative - 500 500 500 - Total program expenses - 1,515,948 1,533,978 1,499,360 1,546,808 Outcome 4 Totals by appropriation type Administered expenses Ordinary annual services (Appropriation Act No. 1 and Bill No. 3)

- 1,515,948 1,533,978 1,499,360 1,546,808

Administered total - 1,515,948 1,533,978 1,499,360 1,546,808 Departmental expenses Departmental appropriation - 261,409 236,175 231,738 211,585 s74 External Revenue(c) - 37,801 37,801 37,801 37,801 Expenses not requiring appropriation in the Budget year(d) - 70,361 51,244 54,417 53,884

Departmental total - 369,571 325,220 323,956 303,270 Total expenses for Outcome 4 - 1,885,519 1,859,198 1,823,316 1,850,078

Movement of administered funds between years(e)

2018–19Actual

expenses

$'000

2019–20Revised

estimated expenses

$'000


$'000


$'000


$'000Outcome 4: Skills and Training Incentive (150) - 150 - - Labour Market Support Stream (7,054) - 3,527 3,527 - Total movement of administered funds (7,204) - 3,677 3,527 - 2018–19 2019–20Average staffing level (number) - 1,511


(a) Due to the Administrative Arrangement Order of 29 May 2019, actual expenses and ASL for the period 1 July 2018 to 30 June 2019 are reported in the 2018–19 Department of Employment, Skills, Small and Family Business annual report.


(c) Estimated expenses incurred in relation to receipts retained under section 74 of the PGPA Act 2013.(d) Expenses not requiring appropriation in the Budget year are made up of depreciation / amortisation

expenses, make good expenses and audit fees.(e) Figures displayed as a negative (-) represent a decrease in funds and a positive (+) represent an increase in

funds.

64



There have been no changes to performance criteria for Outcome 4 resulting from decisions made since the 2019–20 Budget. For a full outline of all performance criteria associated with Outcome 4 see the Jobs and Small Business Portfolio Budget Statements 2019–20 and the Department of Employment, Skills, Small and Family Business Corporate Plan 2019–20.

65


Section 3: Special account flows and budgeted financial statements

3.1 SPECIAL ACCOUNT FLOWS

Estimates of special account flows

Special Accounts provide a means to set aside and record amounts used for specified purposes. Table 3.1 shows the expected additions (receipts) and reductions (payments) for each account used by the Department of Education, Skill and Employment.

Table 3.1: Estimates of special account flows and balances

Outcome

Openingbalance

2019–202018–19

$'000

Receipts

2019–202018–19

$'000

Payments

2019–202018–19

$'000

Adjustments

2019–202018–19

$'000

Closingbalance

2019–202018–19

$'000Early Years Quality Fund Special Account - s80 PGPA Act [s5(1) Early Years Quality Fund Special Account Act 2013] (A)

1

42,143 - - - 42,143 Early Years Quality Fund

Special Account - s80 PGPA Act [s5(1) Early Years Quality Fund Special Account Act 2013] (A)

1

42,143 - - - 42,143 Overseas Students Tuition Fund - s80 PGPA Act 2013 (A) 2 39,564 5,620 (7,644) - 37,540 Overseas Students Tuition Fund - s80 PGPA Act 2013 (A) 36,889 6,118 (3,443) - 39,564 HELP Tuition Protection Fund Special Account (A) 2 - 1,500 (945) - 555 HELP Tuition Protection Fund Special Account (A) - - - - - Growth Fund Skills and Training Special Account - s78 PGPA Act Det 2015/04 (A) (a)

3

1,689 19,558 (21,247) - - Growth Fund Skills and Training Special Account - s78 PGPA Act Det 2015/04 (A)

3

9,672 8,618 (16,601) - 1,689 VSL Tuition Protection Fund Special Account (A) (a) 3 - 3,000 (2,542) - 458

66


Outcome

Openingbalance

2019–202018–19

$'000

Receipts

2019–202018–19

$'000

Payments

2019–202018–19

$'000

Adjustments

2019–202018–19

$'000

Closingbalance

2019–202018–19

$'000VSL Tuition Protection Fund Special Account (A) 3 - - - - - Services for other Entities and Trust Moneys Special Account - s78 PGPA Act 2013 (A)

1&2

1,645 - - 1,645 Services for other Entities and Trust Moneys Special Account - s78 PGPA Act 2013 (A)

1&2

2,031 1,616 (2,002) - 1,645 Unique Student Identifiers Special Account - s80 PGPA Act 2013 (D) (a)

3 - 6,152 (6,152) 4,112 4,112

Unique Student Identifiers Special Account - s80 PGPA Act 2013 (D)

3

4,089 5,340 (3,998) (5,431) - Total special accounts 2018-19 Budget estimate 85,041 35,830 (38,530) 4,112 86,453

Total special accounts 2018–19 actual 94,824 21,692 (26,044) (5,431) 85,041

(A) = Administered(D) = Departmental(a) Transferred from the then Department of Employment, Skills, Small and Family Business following the

Administrative Arrangements Order announced on 5 December 2019, effective 1 February 2020.

67


3.2 BUDGETED FINANCIAL STATEMENTS

3.2.1 Analysis of budgeted financial statements

The financial statements have been updated to reflect changes resulting from the new measures and variations as outline in Table 1.3.

The department’s revised budget and forward estimates have been prepared in accordance with Australian Accounting Standards, including AASB 16: Leases.

The department’s financial statements have been affected by Administrative Arrangements Orders (AAOs) in 2019 and 2020. The 2018–19 financial result is based on the Department of Education’s annual report which was affected by the AAO of 29 May 2019 which transferred vocational education, skills and training functions to the then Department of Employment, Skills, Small and Family Business. Subsequently, the Administrative Arrangements Order of 5 December 2019, effective from 1 February 2020, transferred responsibility for these functions and employment services to the department. The revised budget and forward estimates reflect the combined full year effect of these functions as well as the existing education functions.

Budgeted Departmental comprehensive income statement

The department’s income statement reflects a surplus across the revised budget and forward estimates. These surpluses can be attributed to revenues receipted for the development of IT software solutions, with the corresponding capital expenditure reported in the department’s capital budget statement.

68


3.2.2 Budgeted financial statementsTable 3.2: Comprehensive income statement (showing net cost of services) for the period ended 30 June

2018–19Actual

(a)

$'000

2019–20Revised budget

$'000

2020–21Forward estimate

$'000


$'000


$'000EXPENSES

Employee benefits 224,126 421,878 397,337 395,095 395,256 Suppliers 160,532 269,864 240,042 223,464 189,506 Grants 383 - - - - Depreciation and amortisation 22,175 128,331 110,623 115,043 115,816 Finance costs - 6,258 6,421 6,430 6,434 Write-down and impairment of

assets 1,386 - - - - Total expenses 408,602 826,331 754,423 740,032 707,012 LESS: OWN-SOURCE INCOME

Own-source revenue Sale of goods and rendering of

services 9,379 58,746 58,386 58,386 58,386 Rental income 8,239 8,625 8,625 8,625 8,625 Other revenue 5,207 20,059 10,814 10,752 10,840

Total own-source revenue 22,825 87,430 77,825 77,763 77,851 Gains

Other gains 364 410 410 410 410 Total gains 364 410 410 410 410

Total own-source income 23,189 87,840 78,235 78,173 78,261 Net cost of / (contribution by) services

(385,413)

(738,491)

(676,188)

(661,859)

(628,751)

Revenue from Government 365,006 665,552 615,791 599,209 567,659 Surplus/(deficit) attributable to the Australian Government (20,407) (72,939) (60,397) (62,650) (61,092)OTHER COMPREHENSIVE INCOME Changes in asset revaluation surplus 1,014 - - - - Total other comprehensive income 1,014 - - - - Total comprehensive income/(loss) attributable to the Australian Government (19,393) (72,939) (60,397) (62,650) (61,092)

69


2018–19Actual

(a)

$'000


$'000


$'000


$'000


$'000Note: Impact of net cash appropriation arrangements Total comprehensive income/(loss) excluding depreciation/ amortisation expenses previously funded through revenue appropriations, depreciation on ROU, principal repayments on leased assets 2,782 8,655 334 355 355

less depreciation/amortisation expenses previously funded through revenue appropriations (b) 22,175 75,129 54,870 57,831 57,159

less depreciation/amortisation expenses for ROU (c) - 53,202 55,753 57,212 58,657

add principal repayments on leased assets (c) - 46,737 49,892 52,038 54,369 Total comprehensive income/(loss) - as per the statement of comprehensive income (19,393) (72,939) (60,397) (62,650) (61,092)

Prepared on Australian Accounting Standards basis.Note: The revised budget and forward estimates reflects the full year effect of functions transferred following

the Administrative Arrangements Order of 5 December 2019, effective 1 February 2020.(a) Reflects the Department of Education’s 2018–19 Annual Report.(b) From 2010–11, the Government introduced net cash appropriation arrangements where Appropriation

Act (No. 1) or Appropriation Bill (No. 3) revenue appropriations for the depreciation/amortisation expenses of non-corporate Commonwealth entities were replaced with a separate capital budget (the Departmental Capital Budget, or DCB) provided through Appropriation Act (No. 1) or Bill (No. 3) equity appropriations. For information regarding DCB, please refer to Table 3.6 Departmental Capital Budget Statement.

(c) Applies leases under AASB 16 Leases.

70


Table 3.3: Budgeted departmental balance sheet (as at 30 June)

2018–19Actual

(a)

$'000


$'000


$'000


$'000


$'000ASSETS

Financial assets Cash and cash equivalents 4,477 12,845 12,845 12,845 12,845 Trade and other receivables 76,687 199,851 199,950 200,013 200,151 Other financial assets 469 1,949 1,949 1,949 1,949

Total financial assets 81,633 214,645 214,744 214,807 214,945 Non-financial assets

Land and buildings 30,298 399,039 398,774 376,088 353,733 Property, plant and equipment 1,083 24,724 27,700 30,827 39,005 Intangibles 51,417 211,689 220,074 213,983 212,179 Other non-financial assets 3,979 26,618 26,618 26,618 26,618

Total non-financial assets 86,777 662,070 673,166 647,516 631,535 Assets held for sale

Total assets 168,410 876,715 887,910 862,323 846,480 LIABILITIES

Payables Suppliers 24,148 48,551 48,551 48,551 48,551 Other payables 13,576 1,121 871 626 452

Total payables 37,724 49,672 49,422 49,177 49,003 Interest bearing liabilities

Leases 352,154 361,274 347,915 335,608 Total interest bearing liabilities - 352,154 361,274 347,915 335,608 Provisions

Employee provisions 75,677 166,870 166,972 167,035 167,098 Other provisions 566 628 626 626 625

Total provisions 76,243 167,498 167,598 167,661 167,723 Total liabilities 113,967 569,324 578,294 564,753 552,334 Net assets 54,443 307,391 309,616 297,570 294,146 EQUITY*

Parent entity interest Contributed equity 200,300 677,847 740,469 791,073 848,741 Reserves 1,912 12,322 12,322 12,322 12,322 Retained surplus / (accumulated

deficit)(147,769

)(382,778

)(443,175

)(505,825

)(566,917

)Total parent entity interest 54,443 307,391 309,616 297,570 294,146

Total Equity 54,443 307,391 309,616 297,570 294,146 Prepared on Australian Accounting Standards basis.* Equity is the residual interest in assets after the deduction of liabilities.Note: The revised budget and forward estimates reflects the full year effect of functions transferred following

the Administrative Arrangements Order of 5 December 2019, effective 1 February 2020.(a) Reflects the Department of Education’s 2018–19 Annual Report.

71

Entity Additional Estimates Statements – Department of Education, Skills and EmploymentTable 3.4: Departmental statement of changes in equity — summary of movement (Budget Year 2019–20)

Retainedearnings

$'000

Assetrevaluation

reserve$'000

Otherreserves

$'000

Contributed

equity /capital$'000

Totalequity

$'000Opening balance as at 1 July 2019

Balance carried forward from previous period

(147,769) 1,912 - 200,300 54,443

Intra Agency Program Restructures (103,291) 7,906 - 279,853 184,468

Opening balance adjustments 21,997 - - - 21,997

Adjusted opening balance (229,063) 9,818 - 480,153 260,908

Comprehensive incomeOther comprehensive income - Surplus/(deficit) for the period (72,939) - - - (72,939)

Total comprehensive income (72,939) - - - (72,939)

of which: Attributable to the Australian

Government (72,939) - - - (72,939)

Transactions with owners Distributions to owners

Returns of capital:Other - - - - -

Contributions by ownersEquity Injection - Appropriation - - - 48,215 48,215 Departmental Capital Budget

(DCB) - - - 46,427 46,427

Restructuring (80,776) 2,504 - 110,897 32,625 Other - - - (7,845) (7,845)

Sub-total transactions with owners (80,776) 2,504 - 197,694 119,422

Transfers between equity components - - - - -

Estimated closing balance as at 30 June 2020

(382,778) 12,322 - 677,847 307,391

Closing balance attributable to the Australian Government

(382,778) 12,322 - 677,847 307,391

Prepared on Australian Accounting Standards basis.

72


Table 3.5: Budgeted departmental statement of cash flows (for the period ended 30 June)

2018–19Actual

(a)

$'000


$'000


$'000


$'000


$'000OPERATING ACTIVITIES Cash received

Appropriations 370,589 671,677 615,689 599,146 567,596 Sale of goods and rendering of

services 9,634 67,371 67,011 67,011 67,011

Net GST received 10,198 24,408 22,850 22,250 19,875 Other 8,785 14,854 5,610 5,545 5,558

Total cash received 399,206 778,310 711,160 693,952 660,040 Cash used

Employees 218,410 421,848 397,235 395,032 395,193 Suppliers 159,660 288,621 257,275 240,097 203,764 Grants 383 - - - - s74 External Revenue

transferred to the OPA 18,209 - - - -

Lease liability - Interest payments - 6,258 6,421 6,430 6,434 Other 4,089 1,828 250 245 174

Total cash used 400,751 718,555 661,181 641,804 605,565 Net cash from / (used by)operating activities (1,545) 59,755 49,979 52,148 54,475 INVESTING ACTIVITIES Cash received - - - - - Total cash received - - - - - Cash used

Purchase of property, plant, and equipment and intangibles 22,309 106,214 62,958 50,959 50,632

Total cash used 22,309 106,214 62,958 50,959 50,632 Net cash from / (used by) investing activities (22,309)

(106,214) (62,958) (50,959) (50,632)

FINANCING ACTIVITIES Cash received

Contributed equity 21,950 94,642 62,622 50,604 50,276 Other - 6,674 - - -


Lease liability - principal Payments - 46,489 49,643 51,793 54,119 Total cash used - 46,489 49,643 51,793 54,119 Net cash from/(used by) financing activities 21,950 54,827 12,979 (1,189) (3,843)Net increase/(decrease) in cash held (1,904) 8,368 - - -

Cash and cash equivalents at the beginning of the reporting period 6,381 4,477 12,845 12,845 12,845

Cash and cash equivalents at the end of the reporting period 4,477 12,845 12,845 12,845 12,845


the Administrative Arrangements Order of 5 December 2019, effective 1 February 2020.(a) Reflects the Department of Education's 2018–19 Annual Report.

73

Entity Additional Estimates Statements – Department of Education, Skills and EmploymentTable 3.6: Departmental capital budget statement (for the period ended 30 June)

2018–19Actual (a)

$'000


$'000


$'000


$'000


$'000NEW CAPITAL APPROPRIATIONS

Capital budget - Act No. 1 and Bill 3 (DCB) 22,671 46,427 49,320 49,407 49,743

Equity injections - Act No. 2 and Bill 4 9,210 48,215 13,302 1,197 533 Total new capital appropriations 31,881 94,642 62,622 50,604 50,276 Provided for:

Purchase of non-financial assets 31,881 94,642 62,622 50,604 50,276 Total Items 31,881 94,642 62,622 50,604 50,276 PURCHASE OF NON-FINANCIAL ASSETS

Funded by capital appropriations (b) 9,191 49,010 13,302 1,197 533 Funded by capital appropriation - DCB (c) 12,818 48,549 49,322 49,407 49,744 Funded internally from departmental

resources (d) 300 8,655 334 355 355 TOTAL 22,309 106,214 62,958 50,959 50,632 RECONCILIATION OF CASH USED TO ACQUIRE ASSETS TO ASSET MOVEMENT TABLE Total purchases 22,309 106,214 62,958 50,959 50,632 Total cash used to acquire assets 22,309 106,214 62,958 50,959 50,632


the Administrative Arrangements Order of 5 December 2019, effective 1 February 2020.(a) Reflects the Department of Education’s 2018–19 Annual Report.(b) Includes current Appropriation Bill (No. 4) and prior year Appropriation Act No. 2/4/6.(c) Does not include annual finance lease costs. Includes purchases from current and previous years'

Departmental Capital Budgets (DCBs).(d) Includes the following sources of funding:

- current Appropriation Bill (No. 3) and prior year Appropriation Act 1/3/5 appropriations (excluding amounts from the DCBs);- donations and gifts of non-financial assets;- internally developed assets;- proceeds from the sale of assets; and- s74 External Revenue.

74


Table 3.7: Statement of asset movements (2019–20 Budget year)

Buildings

$'000

Otherproperty,plant andequipmen

t$'000

Computersoftware

andintangible

s$'000

Total

$'000As at 1 July 2019

Gross book value 53,097 26,783 332,148 412,028 Gross book value - ROU - - - - Accumulated depreciation/

amortisation and impairment (588) (5,167) (161,982)(167,737

)Accumulated depreciation/amortisation

and impairment - ROU - - - - Opening net book balance 52,509 21,616 170,166 244,291 CAPITAL ASSET ADDITIONS

Estimated expenditure on new or replacement assets

By purchase - appropriation equity (a) 3,873 - 49,379 53,252

By purchase - appropriation ordinary annual services (b) 2,130 6,159 36,018 44,307

By purchase - other - - 8,655 8,655 By purchase - other - ROU 395,669 137 - 395,806 From acquisition of entities or

operations (including restructuring) 7,178 8,173 19,727 35,078 Total additions 408,850 14,469 113,779 537,098 Other movements

Depreciation/amortisation expense (9,105) (9,630) (56,394) (75,129)Depreciation/amortisation on ROU (53,106) (96) - (53,202)From disposal of entities or

operations (including restructuring) (109) (1,635) (8,017) (9,761)

Other - - (7,845) (7,845)

Total other movements (62,320) (11,361) (72,256)(145,937

)As at 30 June 2020

Gross book value 66,169 39,480 430,065 535,714 Gross book value - ROU 395,669 137 - 395,806 Accumulated depreciation/

amortisation and impairment (9,693) (14,797) (218,376)(242,866

)Accumulated depreciation/amortisation

and impairment - ROU (53,106) (96) - (53,202)Closing net book balance 399,039 24,724 211,689 635,452

Prepared on Australian Accounting Standards basis.(a) ‘Appropriation equity’ refers to equity injections provided through Appropriation Act (No. 2) 2019–2020

and Appropriation Bill (No. 4) 2019–2020.(b) ‘Appropriation ordinary annual services’ refers to funding provided through Appropriation Act (No. 1)

2019–2020 and Appropriation Bill (No. 3) 2019–2020 for depreciation/amortisation expenses, Departmental Capital Budget or other operational expenses.

75


Table 3.8: Schedule of budgeted income and expenses administered on behalf of Government (for the period ended 30 June)

2018–19Actual (a)

$'000

2019–20Revised

budget$'000


$'000


$'000


$'000EXPENSES ADMINISTERED ON BEHALF OF GOVERNMENT

Suppliers 690,547 1,794,374 1,831,119 1,770,848 1,803,249 Subsidies 406,662 508,722 540,950 610,818 649,382 Personal benefits 7,472,214 8,525,019 8,890,865 9,335,809 9,860,791 Grants 29,525,339 31,336,156 33,217,234 34,799,784 36,488,931 Depreciation and amortisation - 92 92 92 92 Finance costs 177,000 116,707 110,857 104,214 284,409 Write-down and impairment of assets 961,215 1,153,234 1,191,849 1,200,007 1,263,137 Other expenses 5,054 - - - -

Total expenses administered on behalf of Government 39,238,031 43,434,304 45,782,966 47,821,572 50,349,991

LESS: OWN-SOURCE INCOME

Own-source revenue Taxation revenue

Other taxes 7,143 5,620 11,376 11,791 12,068 Total taxation revenue 7,143 5,620 11,376 11,791 12,068 Non-taxation revenue

Interest 1,115,400 1,547,711 1,369,261 1,165,274 1,119,276 Other revenue 236,824 217,459 235,995 249,996 259,644

Total non-taxation revenue 1,352,224 1,765,170 1,605,256 1,415,270 1,378,920 Total own-source revenue

administered on behalf of Government

1,359,367 1,770,790 1,616,632 1,427,061 1,390,988

Gains Other gains 5,593,868 - - - -

Total gains administered on behalf of Government 5,593,868 - - - -

Total own-source income administered on behalf of Government 6,953,235 1,770,790 1,616,632 1,427,061 1,390,988

Net cost of/(contribution by) services 32,284,796 41,663,514 44,166,334 46,394,511 48,959,003 Surplus/(deficit) before income tax (32,284,796) (41,663,514) (44,166,334) (46,394,511) (48,959,003)

Income tax expense - - - - - Surplus/(deficit) after income tax (32,284,796) (41,663,514) (44,166,334) (46,394,511) (48,959,003)OTHER COMPREHENSIVE INCOME Items not subject to subsequent reclassification to profit or loss

Changes in asset revaluation surplus 225,148 - - - - Total other comprehensive income 225,148 - - - - Total comprehensive income (loss) attributable to the Australian Government

(32,059,648) (41,663,514) (44,166,334) (46,394,511) (48,959,003)



76


Table 3.9: Schedule of budgeted assets and liabilities administered on behalf of Government (as at 30 June)

2018–19Actual (a)

$'000


$'000


$'000


$'000


$'000ASSETS

Financial assets Cash and cash equivalents 85,041 82,318 83,800 84,385 84,622 Trade and other receivables 599,883 671,174 672,712 677,963 686,634 Other investments 2,908,613 2,908,613 2,908,613 2,908,613 2,908,613 Other financial assets 49,975,112 54,209,178 56,862,866 58,968,870 60,450,336

Total financial assets 53,568,649

57,871,283

60,527,991

62,639,831

64,130,205

Non-financial assets Other non-financial assets - 1,505 1,493 1,481 1,469

Total non-financial assets - 1,505 1,493 1,481 1,469 Total assets administered on behalf of Government 53,568,649 57,872,788 60,529,484 62,641,312 64,131,674

LIABILITIES Payables

Suppliers 102,486 142,878 142,878 142,878 142,878 Subsidies - 37,734 37,734 37,734 37,734 Personal benefits 26,483 204,149 254,576 268,221 282,550 Grants - 13,977 13,977 13,977 13,977 Other payables 24,316 22,890 22,890 22,890 22,890


Leases - 1,142 1,142 1,142 1,142 Total interest bearing liabilities - 1,142 1,142 1,142 1,142 Provisions

Personal benefits provisions 475,818 655,501 719,982 771,814 828,990 Provisions for grants 7,327,000 7,062,215 6,739,010 6,385,470 6,024,752

Total provisions 7,802,818 7,717,716 7,458,992 7,157,284 6,853,742 Total liabilities administered on behalf of Government 7,956,103 8,140,486 7,932,189 7,644,126 7,354,913

Net assets/(liabilities) 45,612,546 49,732,302 52,597,295 54,997,186 56,776,761 Prepared on Australian Accounting Standards basis.Note: The revised budget and forward estimates reflects the full year effect of functions transferred following


77

Entity Additional Estimates Statements – Department of Education, Skills and EmploymentTable 3.10: Schedule of budgeted administered cash flows (for the period ended 30 June)

2018–19Actual (a)

$'000

2019–20Revised

budget$'000


$'000


$'000



Interest 171 1,249,583 1,378,169 1,526,434 1,663,998 Taxes 7,143 5,620 11,376 11,791 12,068 Net GST received 1,011,965 1,422,490 1,512,138 1,582,804 1,656,334 Other 51,112 91,807 102,516 111,260 115,402

Total cash received 1,070,391 2,769,500 3,004,199 3,232,289 3,447,802 Cash used

Grants 31,049,341 33,021,918 35,046,500 36,725,128 38,488,292 Subsidies paid 406,662 508,722 540,950 610,818 649,382 Personal benefits 7,901,664 8,372,688 8,796,720 9,295,670 9,818,317 Suppliers 710,064 1,794,374 1,831,119 1,770,848 1,803,249 Net GST paid - 136,160 135,467 134,381 134,773 Interest payments on lease liability - 25 25 25 25

Total cash used 40,067,731 43,833,887 46,350,781 48,536,870 50,894,038 Net cash from / (used by) operating activities (38,997,340) (41,064,387) (43,346,582) (45,304,581) (47,446,236)INVESTING ACTIVITIES Cash received

Repayments of advances and loans 3,357,560 3,409,531 3,823,591 4,285,109 4,759,415 Total cash received 3,357,560 3,409,531 3,823,591 4,285,109 4,759,415 Cash used

Advances and loans made 6,790,064 7,285,709 7,506,181 7,774,265 8,051,438 Total cash used 6,790,064 7,285,709 7,506,181 7,774,265 8,051,438 Net cash from / (used by) investing activities (3,432,504) (3,876,178) (3,682,590) (3,489,156) (3,292,023)FINANCING ACTIVITIES Cash received

Other - 729 - - - Total cash received - 729 - - - Cash used

Net repayment of borrowings Other 772 80 80 80

Total cash used - 772 80 80 80 Net cash from/(used by) financing activities - (43) (80) (80) (80)Net increase/(decrease) in cash held

(42,429,844)

(44,940,608)

(47,029,252)

(48,793,817)

(50,738,339)

Cash and cash equivalents at beginning of reporting period 90,736 85,040 82,318 83,800 84,385

Cash from Official Public Account for:

- Appropriations 47,092,460 49,854,276 52,511,762 54,894,863 57,444,239 Total cash from Official

Public Account 47,092,460 49,854,276 52,511,762 54,894,863 57,444,239 Cash to Official Public Account

for: - Appropriations (4,668,312) (4,887,262) (5,441,823) (6,059,012) (6,675,341)

Total cash to Official Public Account (4,668,312) (4,887,262) (5,441,823) (6,059,012) (6,675,341)Cash and cash equivalents at end of reporting period 85,040 111,446 123,005 125,834 114,944



78

AUSTRALIAN RESEARCH COUNCIL

Section 1: Entity overview and resources...............................................................1.1 Strategic direction statement............................................................................1.2 Entity resource statement.................................................................................1.3 Entity Measures................................................................................................1.4 Additional estimates, resourcing and variations to outcomes...........................1.5 Breakdown of additional estimates by appropriation bill...................................

Section 2: Revisions to outcomes and planned performance...............................2.1 Budgeted expenses and performance for outcome 1.......................................

Section 3: Special account flows and budgeted financial statements..................3.1 Special account flows.......................................................................................3.2 Budgeted financial statements.........................................................................

79

AUSTRALIAN RESEARCH COUNCIL



The Australian Research Council (ARC) is a non-corporate Commonwealth entity established under the Australian Research Council Act 2001. The ARC is responsible for administering the National Competitive Grants Program (NCGP), assessing the quality, engagement and impact of research and providing advice on research matters.

Through the NCGP, the ARC supports excellent research and research training across all disciplines, awarding funding based on a competitive peer review process. The NCGP comprises two programs, Discovery and Linkage, which fund a range of complementary schemes that provide funding for basic and applied research, research training, research collaboration and infrastructure.

The ARC administers Excellence in Research for Australia (ERA), which assesses research quality by research discipline at eligible Australian higher education institutions. ERA is an established evaluation framework that reflects the Government’s commitment to a transparent and streamlined approach to research evaluation. The ARC is also responsible for administering the Engagement and Impact (EI) assessment, which assesses the engagement of researchers with end-users, and shows how universities are translating their research into economic, social, environmental and other impacts.

The ARC’s priorities for 2019–20 include:

delivering the NCGP effectively and efficiently continuing to provide high quality advice to the Minister on research

matters including in areas of Government focus (for example, strengthening linkages between research and business)

analysing and disseminating data and insights arising from the ERA and EI exercises for the benefit of Government, universities, and other stakeholders

reviewing the ERA and EI exercises working with stakeholders in delivering program and policy

responsibilities, including through consultations and in raising awareness of research funded by the ARC

continuing to monitor the performance of selected NCGP schemes though scheduled reviews and evaluations

81

Entity Additional Estimates Statements — Australian Research Council

ensuring that the NCGP supports participation by all researchers, including Aboriginal and Torres Strait Islander researchers, women researchers and early and mid-career researchers

maintaining a strong governance framework to support delivery against legislative requirements as well as the Government’s expectations for the agency as articulated in the ARC outcome statement.

83



The Entity Resource Statement details the resourcing for the Australian Research Council at Additional Estimates. Table 1.1 outlines the total resourcing available from all sources for the 2019–20 Budget year, including variations through Appropriation Bills No. 3 and No. 4, Special Appropriations and Special Accounts.

Table 1.1: Australian Research Council resource statement — Additional Estimates for 2019–20 as at February 2020

Actualavailable

appropriation

2018–19$'000

Estimate

as atBudget

2019–20

$'000


2019–20$'000

Totalestimate

atAdditiona

lEstimate

s2019–20

$'000Departmental

Annual appropriations - ordinary annual services (a)

Prior year appropriations available (b) 19,560 18,478 2,434 20,912

Departmental appropriation 21,440 21,226 - 21,226

Departmental capital budget (c) 1,228 1,228 210 1,438

Annual appropriations - other services - non-operating (d) - - - -

Prior year appropriations available 1,820 1,182 (1,126) 56

Total departmental annual appropriations 44,048 42,114 1,518 43,632 Total departmental resourcing 44,048 42,114 1,518 43,632

Administered

Annual appropriations - ordinary annual services (a)

Prior year appropriations available (b) 2,814 2,570 (1,259) 1,311

Outcome 1 14,145 10,903 (1,446) 9,457

Total administered annual appropriations 16,959 13,473 (2,705) 10,768

Special Appropriation-Australian Research Council Act 2001(e) 759,925 786,212 - 786,212 Total administered special appropriations 759,925 786,212 - 786,212 Special accounts (f)

Opening balance - - 1,807 1,807

Appropriation receipts (g) 6,525 5,130 (1,446) 3,684

Total special account receipts 6,525 5,130 361 5,491

84


Actualavailable

appropriation

2018–19$'000

Estimate

as atBudget

2019–20

$'000


2019–20$'000

Totalestimate

atAdditiona

lEstimate

s2019–20

$'000

less administered appropriations drawn from annual/special appropriations and credited to special accounts 6,525 5,130 (1,446) 3,684 Total administered resourcing 776,884 799,685 (898) 798,787 Total resourcing for ARC 820,932 841,799 620 842,419

Actual2018

–19 2019–20Average staffing level (number) 124 136

Prepared on a resourcing (i.e. appropriations available) basis.All figures shown above are GST exclusive - these may not match figures in the cash flow statement. (a) Supply Act (No. 1) 2019–2020, Appropriation Act (No. 1) 2019–2020 and Appropriation Bill (No. 3) 2019–2020(b) The revised 2019–20 estimate excludes $0.21m of Departmental 2016-17 annual appropriation that

lapsed 1 July 2019. (c) Departmental capital budgets are not separately identified in Appropriation Act (No. 1) and form part of


(d) Appropriation Act (No. 2) 2019–2020 and Appropriation Act (No. 4) 2019–2020(e) Special Appropriation funded under Australian Research Council Act 2001 s57.(f) ARC Research Endowment Account-s80 PGPA Act 2013 (s62 Australian Research Council Act 2001).

Excludes trust moneys held in Services for Other Entities and Trust Moneys (SOETM) and other special accounts. For further information on special accounts (excluding amounts held on trust), please see Table 3.1.

(g) Amounts credited to the special account(s) from ARC Administered Annual Appropriation.

85


1.3 ENTITY MEASURES

Table 1.2 is not presented as there are no new Government measures taken since the 2019–20 Budget.


The following tables detail the changes to the resourcing for the Australian Research Council at Additional Estimates, by outcome. Table 1.3 details the Additional Estimates resulting from new measures and other variations since the 2019–20 Budget in Appropriation Bills Nos. 3 and 4.


Program impacted

2019–20$'000

2020–21$'000

2021–22$'000

2022–23$'000


Annual appropriations Movement of Funds Departmental (DCB) 210 - - - Changes in Parameters Departmental (Operating) - (42) (42) (42)Departmental (DCB) - (2) (2) (2)

Net impact on appropriations for Outcome 1 (departmental) 210 (44) (44) (44)


Annual appropriations Changes in Parameters net decrease 1.1, 1.2,

1.3 - (29) (18) (19)

Other Variations net decrease 1.2 (1,446) (125) (774) -

Special appropriations (including Special Accounts) Changes in Parameters net decrease 1.1, 1.2,

1.3 - (1,572) (3,611) (3,281)

Net impact on appropriations for Outcome 1 (administered) (1,446) (1,726) (4,403) (3,300)

Total net impact on appropriations for Outcome 1 (1,236) (1,770) (4,447) (3,344)

86



The following tables detail the Additional Estimates sought for Australian Research Council through Appropriation Bills Nos. 3 and 4.


2018–19Available$'000 (a)

2019–20Budget

$'000

2019–20Revised

$'000

Additional Estimates

$'000

Reduced Estimates$'000 (b)

Administered items

Outcome 1 - Growth of Knowledge and innovation through managing research funding schemes, measuring research excellence and providing advice

14,145 10,903 9,457 - (1,446)

Total administered 14,145 10,903 9,457 - (1,446)Departmental programs

Outcome 1 - Growth of Knowledge and innovation through managing research funding schemes, measuring research excellence and providing advice

22,668 22,454 22,664 210 -

Total departmental 22,668 22,454 22,664 210 - Total administered and departmental 36,813 33,357 32,121 210 (1,446)

(a) 2018–19 available appropriation is included to allow a comparison of this year's appropriation with what was made available for use in the previous year. Available appropriation is the amount available to be drawn down, and is equal to Budget Appropriation + Additional Estimates Appropriation + AFM - section 51 withholdings - administrative quarantines +/- Machinery of Government transfers.

(b) The reduced for Administered Annual Appropriation estimates reflects updated profile of PFAS (per- and poly-fluoroalkyl substances) Remediation Research Program funding following the finalisation of the second funding round.

87




Outcome 1: Growth of knowledge and innovation through managing research funding schemes, measuring research excellence and providing advice.


This table shows how much the Australian Research Council intends to spend (on an accrual basis) on achieving the outcome, broken down by program, as well as by Administered and Departmental funding sources.


2018–19Actual

expenses

$'000

2019–20Revised

estimated expenses

$'000


$'000


$'000


$'000Program 1.1: Discovery - Research and Research Training


Special appropriations Australian Research Council Act 2001 464,992 507,044 512,536 523,225 534,997 Total expenses for program 1.1 466,075 508,214 513,726 524,442 536,245 Program 1.2: Linkage - Cross Sector Research Partnerships

Administered expenses Ordinary annual services (Appropriation Act No. 1 and Bill No. 3)(a) 1,489 1,522 1,550 1,585 1,625

Special appropriations Australian Research Council Act 2001 229,583 279,168 288,222 293,947 300,561 Special account ARC Research Endowment Account - s80 PGPA Act 2013 [s62 Australian Research Council Act 2001)

5,524 4,684 2,791 - -

Total expenses for program 1.2 236,596 285,374 292,563 295,532 302,186 Program 1.3: Excellence in Research for Australia

Administered expenses Ordinary annual services (Appropriation Act No. 1 and Bill No. 3)(a) 4,425 3,556 3,137 3,209 3,288

Total expenses for program 1.3 4,425 3,556 3,137 3,209 3,288 Administered total 707,096 797,144 809,426 823,183 841,719

ARC - Departmental Departmental expenses Departmental appropriation 21,440 21,226 21,502 21,536 21,563 Expenses not requiring appropriation inthe Budget year (b) 2,391 3,609 2,847 2,827 2,699

Total expenses for Departmental 23,831 24,835 24,349 24,363 24,262

88


2018–19Actual

expenses

$'000

2019–20Revised

estimated expenses

$'000


$'000


$'000


$'000Outcome 1 Totals by appropriation type

Administered expenses Ordinary annual services (Appropriation Act No. 1 and Bill No. 3) (a) 6,997 6,248 5,877 6,011 6,161

Special appropriations 694,575 786,212 800,758 817,172 835,558 Special accounts 5,524 4,684 2,791 -

Administered total 707,096 797,144 809,426 823,183 841,719 Departmental expenses Departmental appropriation 21,440 21,226 21,502 21,536 21,563 Expenses not requiring appropriation in the Budget year (b) 2,391 3,609 2,847 2,827 2,699

Departmental total 23,831 24,835 24,349 24,363 24,262 Total expenses for Outcome 1 730,927 821,979 833,775 847,546 865,981 2018–19 2019–20Average staffing level (number) 124 136

Figures displayed as a negative (-) represent a decrease in funds and a positive (+) represent an increase in funds.

(a) Figures displayed are expenses only and may not align to resourcing. For example appropriations credited to a special account are not recognised as expense but they are recognised as resourcing.

(b) Expenses not requiring appropriation in the Budget year are made up of Non-ROU depreciation / amortisation expenses, make good expenses, audit fees.

89





Special Accounts provide a means to set aside and record amounts used for specified purposes. Table 3.1 shows the expected additions (receipts) and reductions (payments) for each account used by the Australian Research Council.

Table 3.1: Estimates of special account flows and balances

Outcome

Opening

balance$'000

Receipts

$'000

Payments

$'000

Adjustments

$'000

Closingbalance

$'000

ARC Research Endowment Account - s80 PGPA Act 2013 (s62 Australian Research Council Act 2001) - (A)

2019–20 1 1,807 3,684 (4,684) - 807 2018–19 - 6,525 (4,718) - 1,807

Total special accounts 2019–20 Budget estimate 1,807 3,684 (4,684) - 807

Total special accounts

2018–19 actual - 6,525 (4,718) - 1,807 (A) = Administered

90



3.2.1 Analysis of budgeted financial statementsDepartmental Budgeted Statements

The ARC’s Departmental estimates have been materially adjusted since the 2019–20 Budget to account for the recently implemented accounting standard AASB16 – Leases.

Administered Budgeted Statements

The ARC’s Administered estimates have not been materially adjusted since the 2019–20 Budget.

91



2018–19Actual

$'000


$'000


$'000


$'000


$'000EXPENSES

Employee benefits 15,812 16,376 16,694 17,019 17,349 Suppliers 4,376 3,538 2,778 2,548 2,310 Depreciation and amortisation 3,349 4,543 4,563 4,543 4,415 Finance costs 284 378 314 253 188 Losses from asset sales 10 - - - -

Total expenses 23,831 24,835 24,349 24,363 24,262 LESS: OWN-SOURCE INCOME

Own-source revenue Other revenue 61 60 60 60 60

Total own-source revenue 61 60 60 60 60 Total own-source income 61 60 60 60 60 Net cost of / (contribution by) services (23,770) (24,775) (24,289) (24,303) (24,202)Revenue from Government 21,440 21,226 21,321 21,461 21,599 Surplus/(deficit) attributable to the Australian Government (2,330) (3,549) (2,968) (2,842) (2,603)Total comprehensive income/(loss) attributable to the Australian Government (2,330) (3,549) (2,968) (2,842) (2,603)Note: Impact of net cash appropriation arrangements Total comprehensive income/(loss) excluding depreciation/ amortisation expenses previously funded through revenue appropriations, depreciation on ROU, principal repayments on leased assets 1,019 (500) - - -

less depreciation/amortisation expenses previously funded through revenue appropriations (a) 3,349 2,767 2,787 2,767 2,639

less depreciation/amortisation expenses for ROU (b) - 1,776 1,776 1,776 1,776

add principal repayments on leased assets (b) - 1,494 1,595 1,701 1,812 Total comprehensive income/(loss) - as per the statement of comprehensive income (2,330) (3,549) (2,968) (2,842) (2,603)

Prepared on Australian Accounting Standards basis.(a) From 2010-11, the Government introduced net cash appropriation arrangements where Appropriation


(b) Applies leases under AASB 16 Leases.

92



2018–19Actual

$'000


$'000


$'000


$'000


$'000ASSETS

Financial assets Cash and cash equivalents 362 362 362 362 362 Trade and other receivables 21,012 18,041 17,720 18,028 17,334


Land and buildings 1,390 10,897 9,241 7,465 5,689 Property, plant and equipment 631 1,203 1,317 1,159 2,160 Intangibles 9,711 9,872 8,157 6,286 4,298 Other non-financial assets 414 414 414 414 414

Total non-financial assets 12,146 22,386 19,129 15,324 12,561 Total assets 33,520 40,789 37,211 33,714 30,257 LIABILITIES

Payables Suppliers 2,344 535 535 535 535 Other payables 189 306 370 437 437

Total payables 2,533 841 905 972 972 Interest bearing liabilities

Leases 2,009 11,270 9,362 7,397 5,291 Total interest bearing liabilities 2,009 11,270 9,362 7,397 5,291 Provisions



Parent entity interest Contributed equity 37,301 38,740 39,974 41,217 42,469 Reserves 43 42 42 42 42 Retained surplus / (accumulated

deficit) (13,686) (15,425) (18,393) (21,235) (23,838)

Total parent entity interest 23,658 23,357 21,623 20,024 18,673 Attributed to non-controlling interest

Contributed equity - - - - - Total non-controlling interest - - - - -

Total Equity 23,658 23,357 21,623 20,024 18,673 Prepared on Australian Accounting Standards basis.* Equity is the residual interest in assets after the deduction of liabilities.

93


Table 3.4: Departmental statement of changes in equity — summary of movement (Budget Year 2019–20)

Retained

earnings

$'000

Assetrevaluatio

nreserve

$'000

Otherreserve

s

$'000

Contributed


Totalequity


Balance carried forward from previous period (11,876) 42 - 37,302 25,468

Adjustment for changes in accounting policies - - - - -

Adjusted opening balance (11,876) 42 - 37,302 25,46

8 Comprehensive income

Surplus/(deficit) for the period (3,549) (3,549)


Transactions with owners Contributions by owners

Departmental Capital Budget (DCB) 1,438 1,438

Sub-total transactions with owners - - - 1,438 1,438

Transfers between equity components - - - - -

Estimated closing balance as at 30 June 2020 (15,425) 42 - 38,740 23,357

Less: non-controlling interests* - - - - - Closing balance attributable to the Australian Government (15,425) 42 - 38,740 23,357

Prepared on Australian Accounting Standards basis.* The non-controlling interest disclosure is not required if an entity does not have non-controlling

interests.

94



2018–19Actual

$'000


$'000


$'000


$'000



Appropriations 20,757 24,197 21,642 21,153 22,293 Net GST received 816 704 652 593 581 Other 75 - - - -


Employees 15,818 16,257 16,630 16,952 17,349 Suppliers 4,502 3,478 2,718 2,488 2,250 Borrowing costs 231 197 164 134 103 Net GST paid 678 704 652 593 581

Total cash used 21,229 20,636 20,164 20,167 20,283 Net cash from / (used by)operating activities 419 4,265 2,130 1,579 2,591 INVESTING ACTIVITIES Cash received

Other - - - - - Total cash received - - - - - Cash used

Purchase of property, plant, and equipment and intangibles 2,084 3,680 1,306 738 1,652

Principal payments on lease liability - 1,842 1,908 1,965 2,106 Total cash used 2,084 5,522 3,214 2,703 3,758 Net cash from / (used by) investing activities (2,084) (5,522) (3,214) (2,703) (3,758)FINANCING ACTIVITIES Cash received

Contributed equity 2,114 1,438 1,234 1,243 1,252 Total cash received 2,114 1,438 1,234 1,243 1,252 Cash used

Interest payments on lease liability - 181 150 119 85 Other 368 - - - -

Total cash used 368 181 150 119 85 Net cash from/(used by) financing activities 1,746 1,257 1,084 1,124 1,167 Net increase/(decrease) in cash held 81 - - - -

Cash and cash equivalents at the beginning of the reporting period 281 362 362 362 362

Cash and cash equivalents at the end of the reporting period 362 362 362 362 362


95


Table 3.6: Departmental capital budget statement (for the period ended 30 June)

2018–19Actual

$'000


$'000


$'000


$'000



Capital budget - Act No. 1 and Bill 3 (DCB) 1,228 1,438 1,234 1,243 1,252 Total new capital appropriations 1,228 1,438 1,234 1,243 1,252 Provided for:

Purchase of non-financial assets 1,228 1,438 1,234 1,243 1,252 Total Items 1,228 1,438 1,234 1,243 1,252 PURCHASE OF NON-FINANCIAL ASSETS

Funded by capital appropriation - DCB (a) 350 1,438 1,234 738 1,252 Funded internally from departmental

resources (b) - 2,242 72 - 400 TOTAL 350 3,680 1,306 738 1,652 RECONCILIATION OF CASH USED TO ACQUIRE ASSETS TO ASSET MOVEMENT TABLE Total purchases 350 3,680 1,306 738 1,652 Total cash used to acquire assets 350 3,680 1,306 738 1,652

Prepared on Australian Accounting Standards basis.(a) Does not include annual finance lease costs. Includes purchases from current and previous years'

Departmental Capital Budgets (DCBs).(b) Includes the following sources of funding:

- current Appropriation Bill (No. 3) and prior year Appropriation Act 1/3/5 appropriations (excluding amounts from the DCBs);- donations and gifts of non-financial assets;- internally developed assets;- proceeds from the sale of assets; and- s74 External Revenue.

96



Buildings

$'000

Otherproperty,plant and

equipment$'000

Computersoftware

andintangibles

$'000

Total

$'000As at 1 July 2019

Gross book value 441 981 27,825 29,247 Gross book value - ROU 13,629 776 - 14,405 Accumulated depreciation/

amortisation and impairment (41) (413) (18,114) (18,568)Accumulated depreciation/amortisation

and impairment - ROU (1,536) (713) - (2,249)Opening net book balance 12,493 631 9,711 22,835 CAPITAL ASSET ADDITIONS


By purchase - appropriation equity (a) 180 910 2,590 3,680 Total additions 180 910 2,590 3,680 Other movements

Depreciation/amortisation expense (1,776) (338) (2,429) (4,543)Total other movements (1,776) (338) (2,429) (4,543)

As at 30 June 2020Gross book value 621 1,891 30,415 32,927 Gross book value - ROU 13,629 776 - 14,405 Accumulated depreciation/

amortisation and impairment (41) (751) (20,543) (21,335)Accumulated depreciation/amortisation

and impairment - ROU (3,312) (713) - (4,025)Closing net book balance 10,897 1,203 9,872 21,972

Prepared on Australian Accounting Standards basis.(a) ‘Appropriation equity’ refers to equity injections or Administered Assets and Liabilities appropriations

provided through Appropriation Act (No. 2) 2019–2020 and Appropriation Bill (No. 4) 2019–2020, including Collection Development Acquisition Budget.

97



2018–19Actual

$'000


$'000


$'000


$'000



Suppliers 6,997 5,773 5,877 6,011 6,161 Grants 700,099 790,896 803,549 817,172 835,558 Other expenses - 475 - - -

Total expenses administered on behalf of Government 707,096 797,144 809,426 823,183 841,719 LESS: OWN-SOURCE INCOME

Own-source revenue Non-taxation revenue

Other revenue 10,437 9,500 9,500 9,500 9,500 Total non-taxation revenue 10,437 9,500 9,500 9,500 9,500

Total own-source revenue administered on behalf of Government 10,437 9,500 9,500 9,500 9,500 Total own-source income administered on behalf of Government 10,437 9,500 9,500 9,500 9,500 Net cost of/(contribution by) services 696,659 787,644 799,926 813,683 832,219

Surplus/(deficit) before income tax (696,659)

(787,644)

(799,926)

(813,683)

(832,219)

Surplus/(deficit) after income tax (696,659)

(787,644)

(799,926)

(813,683)

(832,219)

Total comprehensive income (loss) attributable to the Australian Government

(696,659)

(787,644)

(799,926)

(813,683)

(832,219)


98



2018–19Actual

$'000


$'000


$'000


$'000


$'000ASSETS

Financial assets Cash and cash equivalents 1,807 807 807 - - Trade and other receivables 295 296 296 296 296

Total financial assets 2,102 1,103 1,103 296 296 Non-financial assets

Other non-financial assets 417 105 105 105 105 Total non-financial assets 417 105 105 105 105

Total assets administered on behalf of Government 2,519 1,208 1,208 401 401 LIABILITIES

Payables Suppliers 388 551 551 551 551 Grants 181,401 181,401 181,401 180,594 180,594

Total payables 181,789 181,952 181,952 181,145 181,145 Total liabilities administered on behalf of Government 181,789 181,952 181,952 181,145 181,145 Net assets/(liabilities) (179,270) (180,744) (180,744) (180,744) (180,744)


99


Table 3.10: Schedule of budgeted administered cash flows (for the period ended 30 June)

2018–19Actual

$'000


$'000


$'000


$'000



Net GST received 1,016 1,809 1,846 1,882 1,924 Other 10,746 9,500 9,500 9,500 9,500


Grants 758,069 790,896 803,549 817,979 835,558 Suppliers 6,544 5,773 5,877 6,011 6,161 Net GST paid 1,020 1,809 1,846 1,882 1,924

Total cash used 765,633 798,478 811,272 825,872 843,643 Net cash from / (used by) operating activities (753,871) (787,169) (799,926) (814,490) (832,219)Net increase/(decrease) in cash held

(753,871) (787,169)

(799,926)

(814,490)

(832,219)

Cash and cash equivalents at beginning of reporting period - 1,807 807 807 -

Cash from Official Public Account for:

- Appropriations 766,420 797,478 811,272 825,065 843,643 - Special Accounts 4,718 4,684 2,791 807 - - Administered GST

Appropriations 1,020 1,809 1,846 1,882 1,924 Total cash from Official

Public Account 772,158 803,971 815,909 827,754 845,567 Cash to Official Public Account

for:

- Appropriations 10,746 11,309 11,346 11,382 11,424 - Special Accounts 6,525 3,684 2,791 807 - - Return of GST appropriation to

OPA 1,016 1,809 1,846 1,882 1,924 Total cash to Official

Public Account 18,287 16,802 15,983 14,071 13,348 Cash and cash equivalents at end of reporting period - 1,807 807 - -


100

AUSTRALIAN SKILLS QUALITY AUTHORITY

Section 1: Entity overview and resources...............................................................1.1 Strategic direction statement............................................................................1.2 Entity resource statement.................................................................................1.3 Entity Measures................................................................................................1.4 Additional estimates, resourcing and variations to outcomes...........................1.5 Breakdown of additional estimates by appropriation bill...................................

Section 2: Revisions to outcomes and planned performance...............................2.1 Budgeted expenses and performance for outcome 1.......................................

Section 3: Special account flows and budgeted financial statements................3.1 Special account flows.....................................................................................3.2 Budgeted financial statements.......................................................................

101

AUSTRALIAN SKILLS QUALITY AUTHORITY



The Australian Skills Quality Authority (ASQA) was established on 1 July 2011 by the enactment of the National Vocational Education and Training Regulator Act 2011 (NVR Act) and supplementary legislation.

ASQA’s focus is on maintaining a nationally consistent regulatory system that gives confidence to stakeholders that vocational education and training providers, and providers of English language courses to overseas students, offer quality training and assessment services. ASQA works to ensure that this training is appropriate to meet Australia’s social and economic needs for a highly educated and skilled population.

ASQA is expanding its educative role and improving its regulatory approach to support the fair, transparent and effective regulation of the VET sector, and high quality student outcomes.

103


The Entity Resource Statement details the resourcing for the Australian Skills Quality Authority at Additional Estimates. Table 1.1 outlines the total resourcing available from all sources for the 2019–20 Budget year, including variations through Appropriation Bills No. 3 and No. 4, Special Appropriations and Special Accounts.

Table 1.1: Australian Skills Quality Authority resource statement — Additional Estimates for 2019–20 as at February 2020

Actualavailable

appropriation

2018–19$'000

Estimateas at

Budget

2019–20$'000


2019–20$'000

Totalestimate atAdditionalEstimates2019–20

$'000Departmental Annual appropriations - ordinary annual services

Prior year appropriations available (a) 15,862 13,899 - 13,899 Departmental appropriation 36,102 36,454 2,957 39,411 s74 External Revenue 3,724 264 - 264 Departmental capital budget (b) 1,212 1,211 - 1,211 Equity injection (c) 1,845 3,013 - 3,013 Loans - - - -

Total departmental annual appropriations 58,745 54,841 2,957 57,798 Total departmental resourcing 58,745 54,841 2,957 57,798 Administered Total administered special appropriations 683 357 - 357 Total resourcing for ASQA 59,428 55,198 2,957 58,155

Actual2018

–19 2019–20Average staffing level (number) 195 199

Prepared on a resourcing (i.e. appropriations available) basis.All figures shown above are GST exclusive - these may not match figures in the cash flow statement.(a) Appropriation Act (No. 1) 2019–2020 and Appropriation Bill (No. 3) 2019–2020(b) Departmental capital budgets are not separately identified in Appropriation Act (No. 1) and form part of


(c) Appropriation Act (No. 2) 2019–2020 and Appropriation Bill (No. 4) 2019–2020.

104

Entity Additional Estimates Statements — Australian Skills Quality Authority

1.3 ENTITY MEASURES

Table 1.2 summarises new Government measures taken since the 2019–20 Budget. The table is split into revenue, expense and capital measures, with the affected program identified.

Table 1.2: Entity 2019–20 measures since Budget

Program 2019–20

$'0002020–21

$'0002021–22

$'0002022–23

$'000Expense measures (if applicable) Skills Package — strengthening the national training system 1.1

Administered expenses - - - -Departmental expenses 2,957 1,785 1,599 1,610

Total 2,957 1,785 1,599 1,610 Total expense measures

Administered - - - -Departmental 2,957 1,785 1,599 1,610

Total 2,957 1,785 1,599 1,610 Prepared on a Government Financial Statistics (fiscal) basis.


The following tables detail the changes to the resourcing for the Australian Skills Quality Authority at Additional Estimates, by outcome. Table 1.3 details the Additional Estimates resulting from new measures and other variations since the 2019–20 Budget in Appropriation Bills Nos. 3 and 4.


Program impacted

2019–20$'000

2020–21$'000

2021–22$'000

2022–23$'000


Skills Package — strengthening the national training system.

1.1 2,957 1,785 1,599 1,610

Changes in Parameters (net decrease) - (71) (71) (72)Net impact on appropriations for Outcome 1 (departmental) 2,957 1,714 1,528 1,538 Total net impact on appropriations for Outcome 1

2,957 1,714 1,528 1,538

Prepared on a resourcing (i.e. appropriations available) basis.

105



The following tables detail the Additional Estimates sought for Australian Skills Quality Authority through Appropriation Bills Nos. 3 and 4.


2018–19Available

$'000

2019–20Budget

$'000

2019–20Revised

$'000

Additional

Estimates

$'000

Reduced Estimate

s$'000

Departmental programs

Outcome 1 - Contribute to a high quality vocational education and training sector, including through streamlined and nationally consistent regulation of training providers and courses, and the communication of advice to the sector on improvements to the quality of vocational education and training

36,102 36,454 39,411 2,957 -

Total departmental - - - 2,957 - Total administered and departmental 36,102 36,454 39,411 2,957 -

106




Outcome 1: Contribute to a high quality vocational education and training sector, including through streamlined and nationally consistent regulation of training providers and courses, and the communication of advice to the sector on improvements to the quality of vocational education and training.


This table shows how much the Australian Skills Quality Authority intends to spend (on an accrual basis) on achieving the outcome, broken down by program, as well as by Administered and Departmental funding sources.


2018–19Actual

expenses

$'000

2019–20Revised estimate

d expense

s$'000

2020–21

Forwardestimate

$'000

2021–22

Forwardestimate

$'000

2022–23

Forwardestimate

$'000Program 1.1: Regulation and advice

Special appropriations Special appropriation 2019-20 - 357 357 357 357 Special appropriation 2018-19 683 - - - -

Administered total 683 357 357 357 357 Departmental expenses

Departmental appropriation 36,102 39,411 37,869 37,872 38,131 s74 External Revenue (a) 3,724 264 132 - - Special appropriations Expenses not requiring appropriation in

the Budget year (b) 3,288 6,315 5,900 5,633 5,767

Departmental total 43,114 45,990 43,901 43,505 43,898 Total expenses for program 1.1 43,797 46,347 44,258 43,862 44,255 2018–19 2019–20Average staffing level (number) 195 199

(a) Expenses not requiring appropriation in the Budget year are made up of depreciation / amortisation expenses including lease depreciation as per AASB 16 Leases

(b) Expenses not requiring appropriation in the Budget year are made up of depreciation and amortisation expenses.


107





ASQA does not have special accounts, therefore Table 3.1 is not presented.


3.2.1 Analysis of budgeted financial statements

The major change for ASQA since the Portfolio Budget Statements (PBS) 2019–20 is the additional funding for the Skills Package — strengthening the national training system. The revised budgeted financial statements for ASQA are presented in this section.

108



2018–19Actual

$'000


$'000


$'000


$'000


$'000EXPENSES

Employee benefits 23,765 23,578 24,122 24,484 24,851 Suppliers 13,264 13,454 11,133 10,537 10,321 Depreciation and amortisation 3,288 6,315 5,900 5,633 5,767 Finance costs 11 138 143 146 150

Total expenses 40,328 43,485 41,298 40,800 41,089 LESS: OWN-SOURCE INCOME

Own-source revenue Sale of goods and rendering of

services 976 - - - - Sublease income 297 264 132 - -

Total own-source revenue 1,273 264 132 - - Gains

Other gains 50 50 50 50 50 Total gains 50 50 50 50 50

Total own-source income 1,323 314 182 50 50 Net cost of / (contribution by) services (39,005) (43,171) (41,116) (40,750) (41,039)Revenue from Government 36,102 39,411 37,869 37,872 38,131 Surplus/(deficit) attributable to the Australian Government (2,903) (3,760) (3,247) (2,878) (2,908)OTHER COMPREHENSIVE INCOME Changes in asset revaluation surplus (81) - - - - Total other comprehensive income (81) - - - - Total comprehensive income/(loss) attributable to the Australian Government (2,984) (3,760) (3,247) (2,878) (2,908)

109


Table 3.2: Comprehensive income statement (showing net cost of services) for the period ended 30 June (continued)

Note: Impact of net cash appropriation arrangements

2018–19

$'0002019–20

$'0002020–21

$'0002021–22

$'0002022–23

$'000Total comprehensive income/(loss) excluding depreciation/ amortisation expenses previously funded through revenue appropriations, depreciation on ROU, principal repayments on leased assets 304 - - - -

less depreciation/amortisation expenses previously funded through revenue appropriations (a) (3,288) (3,464) (3,480) (3,360) (3,702)

less depreciation/amortisation expenses for ROU (b) (2,851) (2,420) (2,273) (2,065)

add principal repayments on leased assets (b) - 2,555 2,653 2,755 2,859 Total comprehensive income/(loss) - as per the statement of comprehensive income (2,984) (3,760) (3,247) (2,878) (2,908)

Prepared on Australian Accounting Standards basis.(a) From 2010-11, the Government introduced net cash appropriation arrangements where Appropriation


(b) Applies leases under AASB 16 Leases.

110



2018–19Actual

$'000


$'000


$'000


$'000


$'000ASSETS

Financial assets Cash and cash equivalents 284 284 284 284 284 Trade and other receivables 17,987 17,987 17,987 17,987 17,987


Land and buildings 2,911 7,883 6,984 6,486 5,987 Property, plant and equipment 225 396 602 414 246 Intangibles 11,770 12,510 12,881 12,505 11,755 Other non-financial assets 696 696 696 696 696

Total non-financial assets 15,602 21,485 21,163 20,101 18,684 Total assets 33,873 39,756 39,434 38,372 36,955 LIABILITIES

Payables Suppliers 3,424 3,588 3,588 3,588 3,588 Other payables 238 238 238 238 238


Leases - 5,419 5,657 5,902 6,157 Total interest bearing liabilities - 5,419 5,657 5,902 6,157 Provisions



Parent entity interest Contributed equity 27,758 31,982 34,669 36,240 37,476 Reserves 1,394 1,394 1,394 1,394 1,394 Retained surplus / (accumulated

deficit) (4,708) (8,468) (11,715) (14,593) (17,501)

Total parent entity interest 24,444 24,908 24,348 23,041 21,369 Total Equity 24,444 24,908 24,348 23,041 21,369

Prepared on Australian Accounting Standards basis.* Equity is the residual interest in assets after the deduction of liabilities.

111


Table 3.4: Departmental statement of changes in equity — summary of movement (Budget Year 2019–20)

Retained

earnings

$'000

Assetrevaluatio

nreserve

$'000

Otherreserve

s

$'000

Contributed


Totalequity


Balance carried forward from previous period (4,708) 1,354 40 27,758 24,444

Adjusted opening balance (4,708) 1,354 40 27,758 24,444

Comprehensive income

Other comprehensive income (3,760) - - - (3,760)

Surplus/(deficit) for the period - - - - -


Transactions with owners Equity Injection - Appropriation - - - 3,013 3,013 Departmental Capital Budget

(DCB) - - - 1,211 1,211

Sub-total transactions with owners - - - 4,224 4,224

Estimated closing balance as at 30 June 2020 (8,468) 1,354 40 31,982 24,908

Less: non-controlling interests* - - - - - Closing balance attributable to the Australian Government (8,468) 1,354 40 31,982 24,908

Prepared on Australian Accounting Standards basis.* The non-controlling interest disclosure is not required if an entity does not have non-controlling interests.

112



2018–19Actual

$'000


$'000


$'000


$'000



Appropriations 34,714 39,411 37,869 37,872 38,131 Sale of goods and rendering of

services 1,159 264 132 - -

Net GST received 50 - - - - Other 706 - - - -


Employees 22,982 23,578 24,122 24,484 24,851 Suppliers 14,348 13,240 11,083 10,487 10,271 Borrowing costs - 138 143 146 150 Other 16 - - - -

Total cash used 37,346 36,956 35,348 35,117 35,272 Net cash from / (used by)operating activities (717) 2,719 2,653 2,755 2,859 INVESTING ACTIVITIES Cash used

Purchase of property, plant, and equipment and intangibles 2,343 4,388 2,687 1,571 1,236

Total cash used 2,343 4,388 2,687 1,571 1,236 Net cash from / (used by) investing activities (2,343) (4,388) (2,687) (1,571) (1,236)

113


2018–19Actual

$'000


$'000


$'000


$'000


$'000FINANCING ACTIVITIES Cash received

Contributed equity 3,057 4,224 2,687 1,571 1,236 Total cash received 3,057 4,224 2,687 1,571 1,236 Cash used

Interest payments on lease liability - 2,555 2,653 2,755 2,859 Total cash used - 2,555 2,653 2,755 2,859 Net cash from/(used by) financing activities 3,057 1,669 34 (1,184) (1,623)Net increase/(decrease) in cash held (3) - - - -

Cash and cash equivalents at the beginning of the reporting period 287 284 284 284 284

Cash and cash equivalents at the end of the reporting period 284 284 284 284 284


114


Table 3.6: Departmental capital budget statement (for the period ended 30 June)

2018–19Actual

$'000


$'000


$'000


$'000



Capital budget - Act No. 1 and Bill 3 (DCB) 1,212 1,211 1,218 1,227 1,236

Equity injections - Act No. 2 and Bill 4 1,845 3,013 1,469 344 - Loans - Act No. 2 and Bill 4 - - - - -

Total new capital appropriations 3,057 4,224 2,687 1,571 1,236 Provided for:

Purchase of non-financial assets 2,284 4,224 2,687 1,571 1,236 Annual finance lease costs Other Items

Total Items 2,284 4,224 2,687 1,571 1,236 PURCHASE OF NON-FINANCIAL ASSETS

Funded by capital appropriations (a) 1,845 4,224 2,687 1,571 1,236 Funded by capital appropriation - DCB

(b) 439 - - - - TOTAL 2,284 4,224 2,687 1,571 1,236 RECONCILIATION OF CASH USED TO ACQUIRE ASSETS TO ASSET MOVEMENT TABLE Total purchases 2,284 4,224 2,687 1,571 1,236 Total cash used to acquire assets 2,284 4,224 2,687 1,571 1,236

Prepared on Australian Accounting Standards basis.(a) Includes current and prior Appropriation Bill (No. 4) and prior Appropriation Act No. 2/4/6

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

Departmental Capital Budgets (DCBs).

115



Buildings

$'000

Otherproperty,plant and

equipment$'000

Computersoftware

andintangible

s$'000

Total

$'000As at 1 July 2019

Gross book value 4,810 534 19,927 25,271 Gross book value - ROU - - - - Accumulated depreciation/

amortisation and impairment (1,899) (309) (8,157) (10,365)Accumulated depreciation/amortisation

and impairment - ROU - - - - Opening net book balance 2,911 225 11,770 14,906 CAPITAL ASSET ADDITIONS


By purchase - appropriation equity (a) 1,120 407 2,697 4,224 By purchase - appropriation equity -

ROU 7,974 - - 7,974 Total additions 9,094 407 2,697 12,198 Other movements

Depreciation/amortisation expense (1,271) (236) (1,957) (3,464)Depreciation/amortisation on

ROU (2,851) - - (2,851)Total other movements (4,122) (236) (1,957) (6,315)

As at 30 June 2020Gross book value 5,930 941 22,624 29,495 Gross book value - ROU 7,974 - - 7,974 Accumulated depreciation/

amortisation and impairment (3,170) (545) (10,114) (13,829)Accumulated depreciation/amortisation

and impairment - ROU (2,851) - - (2,851)Closing net book balance 7,883 396 12,510 20,789

Prepared on Australian Accounting Standards basis.(a) ‘Appropriation equity’ refers to equity injections or Administered Assets and Liabilities appropriations

provided through Appropriation Act (No. 2) 2019–2020 and Appropriation Bill (No. 4) 2019–2020, including Collection Development and Acquisition Budget.

116



2018–19Actual

$'000


$'000


$'000


$'000



Write-down and impairment of assets 241 - - - - Total expenses administered on behalf of Government 241 - - - - LESS: OWN-SOURCE INCOME

Own-source revenue Non-taxation revenue

Fees and fines 20,162 24,287 39,463 39,151 39,429 Total non-taxation revenue 20,162 24,287 39,463 39,151 39,429

Total own-source revenue administered on behalf of Government 20,162 24,287 39,463 39,151 39,429 Total own-source income administered on behalf of Government 20,162 24,287 39,463 39,151 39,429 Net cost of/(contribution by) services (19,921) (24,287) (39,463) (39,151) (39,429)Surplus/(deficit) before income tax 19,921 24,287 39,463 39,151 39,429 Surplus/(deficit) after income tax 19,921 24,287 39,463 39,151 39,429 Total other comprehensive income - - - - - Total comprehensive income (loss) attributable to the Australian Government 19,921 24,287 39,463 39,151 39,429


117



2018–19Actual

$'000


$'000


$'000


$'000


$'000ASSETS

Financial assets Trade and other receivables 323 323 323 323 323

Total financial assets 323 323 323 323 323 Non-financial assets

Total assets administered on behalf of Government 323 323 323 323 323

Provisions

Other provisions 84 84 84 84 84 Total provisions 84 84 84 84 84

Liabilities included in disposal groups held for sale

Total liabilities administered on behalf of Government 84 84 84 84 84 Net assets/(liabilities) 239 239 239 239 239


118


Table 3.10: Schedule of budgeted administered cash flows (for the period ended 30 June)

2018–19Actual

$'000


$'000


$'000


$'000



Sale of goods and rendering of services 20,257 24,644 39,820 39,508 39,786


Other 683 357 357 357 357 Total cash used 683 357 357 357 357 Net cash from / (used by) operating activities 19,574 24,287 39,463 39,151 39,429 Net increase/(decrease) in cash held 19,574 24,287 39,463 39,151 39,429

Total cash from Official Public Account 683 357 357 357 357

Total cash to Official Public Account 20,257 24,644 39,820 39,508 39,786 Cash and cash equivalents at end of reporting period - - - - -


119

PORTFOLIO GLOSSARY AND ACRONYMS

Portfolio glossary

Term DefinitionAccrual accounting System of accounting where items are brought to

account and included in the financial statements as they are earned or incurred, rather than as they are received or paid.

Additional Estimates Where amounts appropriated at Budget time are insufficient, Parliament may appropriate more funds to portfolios through the Additional Estimates Acts.

Additional Estimates Bills or Acts

These are Appropriation Bills 3 and 4, and a separate Bill for the Parliamentary Departments [Appropriations (Parliamentary Departments) Bill (No. 2)]. These Bills are introduced into Parliament sometime after the Budget Bills.

Administered items Expenses, revenues, assets or liabilities managed by agencies on behalf of the Commonwealth. Agencies do not control administered items. Administered expenses include grants, subsidies and benefits. In many cases, administered expenses fund the delivery of third party outputs.

Appropriation An authorisation by Parliament to spend moneys from the Consolidated Revenue Fund for a particular purpose.

Annual Appropriation Two Appropriation Bills are introduced into Parliament in May and comprise the Budget for the financial year beginning 1 July. Further Bills are introduced later in the financial year as part of the additional estimates. Parliamentary departments have their own appropriations.

Assets Assets are physical objects and legal rights it is expected will provide benefits in the future or alternatively items of value owned by an agency.

Budget measure A decision by the Cabinet or ministers that has resulted in a cost or savings to outlays.

Capital expenditure Expenditure by an agency on capital projects, for example purchasing a building.

120

Portfolio glossary and acronyms

Term DefinitionConsolidated Revenue Fund

Section 81 of the Constitution stipulates that all revenue raised or money received by the Commonwealth forms the one Consolidated Revenue Fund (CRF). The CRF is not a bank account. The Official Public Account reflects most of the operations of the CRF.

Departmental items Assets, liabilities, revenues and expenses that are controlled by the agency in providing its outputs. Departmental items would generally include computers, plant and equipment assets used by agencies in providing goods and services and most employee expenses, supplier costs and other administrative expenses incurred.

Depreciation Apportionment of an asset’s capital value as an expense over its estimated useful life to take account of normal usage, obsolescence, or the passage of time.

Equity or net assets Residual interest in the assets of an entity after deduction of its liabilities.

Expenses Total value of all of the resources consumed in producing goods and services or the loss of future economic benefits in the form of reductions in assets or increases in liabilities of an entity.

Fair value Valuation methodology: The amount for which an asset could be exchanged or a liability settled, between knowledgeable and willing parties in an arm’s length transaction. The fair value can be affected by the conditions of the sale, market conditions and the intentions of the asset holder.

Forward estimates A system of rolling three year financial estimates. After the budget is passed, the first year of the forward estimates becomes the base for the next year’s budget bid, and another out-year is added to the forward estimates.

Liabilities Liabilities represent amounts owing on goods or services that have been received but not yet paid for. A liability shows the future commitment of an agency’s assets.

Net annotated appropriation (Section 74 Receipts)

Section 74 Receipts, also known as net annotated appropriations, are a form of appropriation which allows a department access to certain money it receives in payment of services. These monies are known as Section 74 Receipts, reflecting their authority under Section 74 of the PGPA Act 2013.

121


Term DefinitionOfficial Public Account The Australian Government maintains a group of bank

accounts at the Reserve Bank of Australia, known as the Official Public Account (OPA), the aggregate balance of which represents its daily cash position.

Operating result Equals revenue less expenses. Outcomes The Government's objectives in each portfolio area.

Outcomes are desired results, impacts or consequences for the Australian community as influenced by the actions of the Australian Government. Actual outcomes are assessments of the end-results or impacts actually achieved.

Portfolio Budget Statements

Statements prepared by portfolios to explain the budget appropriations in terms of outcomes.

Public Governance, Performance and Accountability Act 2013

The Public Governance, Performance and Accountability Act 2013 (PGPA Act) replaced the Financial Management and Accountability (FMA) Act 1997 and the Commonwealth Authorities and Companies (CAC) Act 1997 as of 1 July 2014.

Receipts The total or gross amount received by the Australian Government. Each receipt item is either revenue, an offset within outlays, or a financing transaction. Receipts include taxes, interest, charges for goods and services, borrowings and Government Business Enterprise (GBE) dividends received.

Revenue Total value of resources earned or received to cover the production of goods and services.

Section 74 Receipts See net annotated appropriation. Special Account Balances existing within the Consolidated Revenue

Fund (CFR) that are supported by standing appropriations (PGPA Act, s78 and s80). Special accounts allow money in the CRF to be acknowledged as set-aside (hypothecated) for a particular purpose. Amounts credited to a Special Account may only be spent for the purposes of the Special Account. Special accounts can only be established by a written determination of the Finance Minister (s78 of the PGPA Act 2013) or through an Act of Parliament (referred to in s80 of the PGPA Act 2013).

122


Term DefinitionSpecial Appropriations (including Standing Appropriations)

An amount of money appropriated by a particular Act of Parliament for a specific purpose and number of years. For special appropriations the authority to withdraw funds from the Consolidated Revenue Fund does not generally cease at the end of the financial year. Standing appropriations are a sub-category consisting of ongoing special appropriations — the amount appropriated will depend on circumstances specified in the legislation.

123


Portfolio acronymsTerm DefinitionAAC Australian Apprenticeship CentresAAO Administrative Arrangements OrdersAC Companion of the Order of AustraliaAM Member of the Order of AustraliaAMSI Australian Mathematical Sciences InstituteARC Australian Research CouncilASQA Australian Skills Quality AuthorityCCCF Community Child Care FundCOPE Commonwealth own-purpose expenseCRF Consolidated Revenue FundDCB Departmental Capital BudgetELLA Early Learning Languages AustraliaELLIC English Language Learning for Indigenous ChildrenERA Excellence in Research in AustraliaGST Goods and Services TaxHELP Higher Education Loan ProgramJEDI Jobs and Education Data InfrastructureJETCCFA Jobs Education and Training, Child Care Fee AssistanceMYEFO Mid-Year Economic and Fiscal OutlookNCGP National Competitive Grants ProgramOPA Official Public AccountPAES Portfolio Additional Estimates StatementsPBS Portfolio Budget StatementsPGPA Act Public Governance, Performance and Accountability Act 2013

ROU right of useSOETM Services for Other Entities and Trust MoneysSTEM science, technology, engineering and mathematicsTAFE Technical and Further EducationTEMAG Teacher Education Ministerial Advisory GroupUSI Unique Student IdentifierVET Vocational Education and Training

VET FEE-HELPLoan scheme for eligible students to pay for all or part of their tuition fees for a VET qualification (diploma level and above) at an approved VET provider

124


Term DefinitionVSL VET Student Loans

125

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