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PORTFOLIO BUDGET STATEMENTS 2014–15BUDGET RELATED PAPER NO. 1.6

EMPLOYMENT PORTFOLIO

BUDGET INITIATIVES AND EXPLANATIONS OFAPPROPRIATIONS SPECIFIED BY OUTCOMESAND PROGRAMMES BY AGENCY

© Commonwealth of Australia 2014ISSN 2203-5583 (Print)ISSN 2203-5591 (Online)This publication is available for your use under a Creative Commons BY Attribution 3.0 Australia licence, with the exception of the Commonwealth Coat of Arms, the Department of Employment logo, photographs, images, signatures and where otherwise stated. The full licence terms are available from http://creativecommons.org/licenses/by/3.0/au/legalcode .

Use of Department of Employment material under a Creative Commons BY Attribution 3.0 Australia licence requires you to attribute the work (but not in any way that suggests that the Department of Employment endorses you or your use of the work). Australian Government Department of Employment material used 'as supplied'

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

Derivative materialIf you have modified or transformed Department of Employment material, or derived new material from those of the Department of Employment in any way, then Department of Employment prefers the following attribution: Based on The Australian Government Department of Employment data

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Other UsesInquiries regarding this licence and any other use of this document are welcome at the: Department of EmploymentPO BOX 9880Canberra ACT 2601 Tel: +61 13 33 97.

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Abbreviations and conventionsThe following notation 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 not zero, but rounded to zerona not applicable (unless otherwise specified)nfp not for publication$m $ million$b $ billion

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.EnquiriesShould you have any enquiries regarding this publication please contact Justine Potter, Chief Finance Officer, Department of Employment on 13 33 97.A copy of this document can be located on the Australian Government Budget website at www.budget.gov.au.

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USER GUIDETO THE

PORTFOLIO BUDGET STATEMENTS

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USER GUIDEThe purpose of the 2014–15 Portfolio Budget Statements (PB Statements) is to inform Senators and Members of Parliament of the proposed allocation of resources to government outcomes by agencies within the portfolio. Agencies receive resources from the annual appropriations acts, special appropriations (including standing appropriations and special accounts), and revenue from other sources.A key role of the PB Statements is to facilitate the understanding of proposed annual appropriations in Appropriation Bills No. 1 and No. 2 2014–15 (or Appropriation Bill [Parliamentary Departments] No. 1 2014–15 for the parliamentary departments). In this sense the PB Statements are Budget related papers and are declared by the Appropriation Acts to be ‘relevant documents’ to the interpretation of the Acts according to section 15AB of the Acts Interpretation Act 1901.The PB Statements provide information, explanation and justification to enable Parliament to understand the purpose of each outcome proposed in the Bills.As required under section 12 of the Charter of Budget Honesty Act 1998, non-general government sector entities are not consolidated into the Commonwealth general government sector fiscal estimates and accordingly, these entities are not reported in the PB Statements.

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CONTENTS

Portfolio Overview...............................................................9Employment Portfolio Overview.........................................................11

Agency Resources and Planned Performance.......................17Department of Employment ..............................................................19Asbestos Safety and Eradication Agency...........................................69Comcare, the Safety, Rehabilitation and Compensation Commission, and the Seafarers Safety, Rehabilitation and Compensation Authority...................................................................91 Fair Work Commission.....................................................................131Office of the Fair Work Building Industry Inspectorate.....................157Office of the Fair Work Ombudsman...............................................181 Safe Work Australia.........................................................................209Workplace Gender Equality Agency.................................................233

Glossary..........................................................................259

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PORTFOLIO OVERVIEW

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Portfolio Overview

EMPLOYMENT PORTFOLIO OVERVIEW

Ministers and Portfolio ResponsibilitiesThe Employment portfolio assists the Australian Government to achieve its objectives for employment. Senator the Hon. Eric Abetz is the Minister for Employment and the Hon. Luke Hartsuyker MP is the Assistant Minister for Employment.The Employment portfolio provides a variety of advice, support, programmes and services to the Australian Government and wider community. The portfolio works with other Australian Government agencies, state and territory governments and a range of service providers to deliver a broad range of services to the community to connect people with jobs, workplaces with safety and business with productivity.The Department of Employment’s role is to provide national policies and programmes that help Australians find and keep employment, work in safe, fair and productive workplaces and improve the employment-related performance of enterprises in Australia.The Asbestos Safety and Eradication Agency is dedicated to working with jurisdictions and stakeholders to facilitate a national approach to the eradication, handling and awareness of asbestos.Comcare, the Safety, Rehabilitation and Compensation Commission, and the Seafarers’ Safety, Rehabilitation and Compensation Authority contribute to a secure, safer, fairer and more productive Australia. Comcare partners with workers, their employers and unions to keep workers healthy and safe, and reduce the incidence and cost of workplace injury and disease.The Fair Work Commission is Australia’s national workplace relations tribunal. It is responsible for administering provisions of the Fair Work Act 2009 as well as a range of other functions. The Office of the Fair Work Building Industry Inspectorate is responsible for ensuring fair and productive Australian building and construction workplaces and delivering impartial and comprehensive advice to the building and construction industry.The Office of the Fair Work Ombudsman promotes harmonious, productive and cooperative workplace relations and ensures compliance with Commonwealth workplace laws.

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Portfolio Overview

Safe Work Australia is leading the development of policy to improve work health and safety and workers’ compensation arrangements across Australia.The Workplace Gender Equality Agency is responsible for promoting and improving gender equality in Australian workplaces and administering the Workplace Gender Equality Act 2012.The Employment portfolio structure and outcomes can be found at Figure 1.

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Portfolio Overview

Figure 1: Employment Portfolio Structure and Outcomes

Minister for Employment Senator the Hon. Eric AbetzAssistant Minister for Employment the Hon. Luke Hartsuyker MP

Department of EmploymentSecretary: Renée Leon PSMOutcome 1: Foster a productive and competitive labour market through employment policies and programmes that assist job seekers into work, meet employer needs and increase Australia’s workforce participation.Outcome 2: Facilitate jobs growth through policies that promote fair, productive and safe workplaces.

Asbestos Safety and Eradication AgencyChief Executive Officer: Peter TigheOutcome: Assist in the prevention of exposure to asbestos fibres and the elimination of asbestos-related disease in Australia through implementing the National Strategic Plan for Asbestos Awareness and Management in Australia.

Comcare, the Safety, Rehabilitation and Compensation Commission, and the Seafarers’ Safety, Rehabilitation and Compensation AuthorityChief Executive Officer: Paul O’Connor

Outcome 1: The protection of the health, safety and welfare at work of workers covered by the Comcare scheme through education, assurance and enforcement.Outcome 2: An early and safe return to work and access to compensation for injured workers covered by the Comcare scheme through working in partnership with employers to create best practice in rehabilitation and quick and accurate management of workers’ compensation claims.Outcome 3: Access to compensation for people with asbestos-related diseases where the Commonwealth has a liability, through management of

Fair Work CommissionGeneral Manager: Bernadette O’Neil

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

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Portfolio Overview

Office of the Fair Work Building Industry InspectorateDirector: Nigel HadgkissOutcome: Enforce workplace relations laws in the building and construction industry and ensure compliance with those laws by all participants in the building and construction industry through the provision of education, assistance and advice.

Office of the Fair Work OmbudsmanOmbudsman: Natalie James

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

Safe Work AustraliaActing Chief Executive Officer: Michelle Baxter

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

Workplace Gender Equality AgencyDirector: Helen Conway

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

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Portfolio Overview

PORTFOLIO RESOURCES

Table 1 shows the total new resources provided to the portfolio in the 2014–15 budget year by agency.Table 1: Portfolio Resources 2014–15

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Receipts TotalBill No. 1 Bill No. 2 Special

$m $m $m $m $mDepartment of Employment Administered appropriations 1,481.8 - 445.5 - 1,927.2Departmental appropriations 282.8 5.9 - 17.5 306.1Total: 1,764.5 5.9 445.5 17.5 2,233.4

Asbestos Safety and Eradication AgencyAdministered appropriations - - - - -Departmental appropriations 4.9 - - - 4.9Total: 4.9 - - - 4.9

Comcare, The Safety Rehabilitation and Compensation Commission, and the Seafarers Safety, Rehabilitation and Compensation AuthorityAdministered appropriations - - - - -Departmental appropriations 7.6 - 0.1 615.4 623.1Total: 7.6 - 0.1 615.4 623.1Fair Work CommissionAdministered appropriations - - - - -Departmental appropriations 82.3 - - 1.3 83.6Total: 82.3 - - 1.3 83.6

Office of the Fair Work Building Industry InspectorateAdministered appropriations - - - - -Departmental appropriations 34.3 - - 0.04 34.4Total: 34.3 - - 0.04 34.4

Fair Work OmbudsmanAdministered appropriations - - 0.2 - 0.2Departmental appropriations 115.6 - - 4.7 120.2Total: 115.6 - 0.2 4.7 120.4

Appropriation

Portfolio Overview

Table 1: Portfolio Resources 2014–15 (continued)

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Receipts TotalBill No. 1 Bill No. 2 Special

$m $m $m $m $mSafe Work AustraliaAdministered appropriations - - - - -Departmental appropriations 9.8 - - 11.0 20.8Total: 9.8 - - 11.0 20.8

Workplace Gender Equality AgencyAdministered appropriations - - - - -Departmental appropriations 5.0 - - 0.3 5.3Total: 5.0 - - 0.3 5.3Portfolio total 2,024.1 5.9 445.8 650.2 3,126.0Less amounts transferred

w ithin portfolio - - - - -

Resources available w ithin portfolio: 3,126.0

Appropriation

AGENCY RESOURCES ANDPLANNED PERFORMANCE

Department of Employment........................................................................19Asbestos Safety and Eradication Agency.....................................................69Comcare, the Safety, Rehabilitation and Compensation Commission, and the Seafarers Safety, Rehabilitation and Compensation Authority............................................................................. 91Fair Work Commission...............................................................................131Office of the Fair Work Building Industry Inspectorate...............................157Office of the Fair Work Ombudsman......................................................... 181Safe Work Australia...................................................................................209Workplace Gender Equality Agency...........................................................233

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Department of Employment

Agency Resources and Planned Performance

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DEPARTMENT OF EMPLOYMENT

Section 1: Agency Overview and Resources.................................231.1 Strategic Direction Statement.........................................................231.2 Agency Resource Statement...........................................................251.3 Budget Measures............................................................................28Section 2: Outcomes and Planned Performance...........................312.1 Outcomes and Performance Information........................................31Section 3: Explanatory Tables and Budgeted Financial Statements................................................................................513.1 Explanatory Tables.........................................................................513.2 Budgeted Financial Statements......................................................52

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Department of Employment Budget Statements 2014–15

DEPARTMENT OF EMPLOYMENT

Section 1: Agency Overview and Resources

1.1 STRATEGIC DIRECTION STATEMENT

The role of the Department of Employment (the department) is to provide policy, support and programmes to deliver the Australian Government’s agenda to create more jobs and increase productivity. The department has two outcomes: To foster a productive and competitive labour market through

employment policies and programmes that assist job seekers into work, meet employer needs and increase Australia’s workforce participation.

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

To achieve these outcomes the major priorities for the department in 2014–15 are: delivering efficient and effective employment services to all eligible

Australians providing assistance to long-term unemployed people to gain

employment with targeted wage subsidies, support and assistance to move locations to take up employment

providing advice and preparing for the implementation of the new employment services model

formulating policy advice, data and analysis for the government on areas such as the labour market, employment services and workplace relations policies

identifying and implementing opportunities to fulfil the government’s deregulation agenda by reducing the unnecessary compliance burden and driving cultural change

continuing to work productively with statutory agencies, including portfolio agencies, to promote a harmonious, productive and fair workplace relations system

providing legal and policy advice to the government to ensure effective implementation and operation of the Fair Work Act 2009 and related frameworks

delivering the government’s election commitments including the Job Commitment Bonus, the Tasmanian Jobs Programme and re-establishing the Australian Building and Construction Commission,

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establishing the Registered Organisation Commission and amending workplace relations and work health and safety acts

supporting an examination of the model work health and safety laws to reduce regulatory burden and to make it easier for businesses and workers to comply with work health and safety obligations.

Budget measures for 2014–15 for the department are set out in Table 1.2.

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1.2 AGENCY RESOURCE STATEMENT

Table 1.1 shows the total resources from all sources. The table summarises how resources will be applied by outcome and by administered and departmental classification.Table 1.1: Department of Employment Resource Statement—Budget Estimates for 2014–15 as at Budget May 2014

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Estimate Proposed Total Actualof prior at Budget estimate available

year amounts appropriation available in

2014-15 2014-15 2014-15 2013-14$'000 $'000 $'000 $'000

Ordinary annual services1

Departmental appropriationPrior year departmental appropriation2 - - - -Departmental appropriation3 - 282,754 282,754 268,537s31 Relevant agency receipts4 - 17,454 17,454 10,270Total - 300,208 300,208 278,807

Administered expensesOutcome 1 - 1,453,525 1,453,525 1,401,449Outcome 2 - 28,247 28,247 21,310Payments to CAC Act bodies - 7,563 7,563 1,433Total - 1,489,335 1,489,335 1,424,192

Total ordinary annual services A - 1,789,543 1,789,543 1,702,999Departmental non-operating

Equity injections 5,926 5,926 2,127Total - 5,926 5,926 2,127

Administered non-operatingAdministered assets and liabilities - - 2,967Total - - - 2,967

Total other services B - 5,926 5,926 5,094Total available annual

appropriations - 1,795,469 1,795,469 1,708,093Special appropriationsSpecial appropriations limited

by criteria/entitlementCoal Mining Industry (Long ServiceLeave Funding) Act 1992 - 174,618 174,618 130,388Safety, Rehabilitation andCompensation Act 1988 - 39,503 39,503 30,332Asbestos-related Claims(Management of CommonwealthLiabilities) Act 2005 - 26,356 26,356 9,858Fair Entitlements Guarantee Act 2012 - 204,997 204,997 134,132

Total special appropriations C - 445,474 445,474 304,710Total appropriations excluding

Special Accounts - 2,240,943 2,240,943 2,012,803


Table 1.1: Department of Employment Resource Statement—Budget Estimates for 2014–15 as at Budget May 2014 (continued)

1 Appropriation Bill (No.1) 2014-152 Estimated adjusted balance carried forward from previous year3 Includes an amount of $27.2m in 2014-15 for the Departmental Capital Budget (refer to table 3.2.5 for further details). For accounting purposes this amount has been designated as 'contributions by owners'.4 s31 Relevant agency receipts - estimate5 Estimated opening balance for special accounts (less ‘Special Public Money’ held in accounts likeOther Trust Monies accounts (OTM), Services for other government and Non-agency Bodies accounts (SOG), or Services for Other Entities and Trust Moneys Special accounts (SOETM)).For further information on special accounts see Table 3.1.2.

Reader note: All figures are GST exclusive.

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2014-15 2014-15 2014-15 2013-14$'000 $'000 $'000 $'000

Special AccountsOpening balance5 - - - -

Total Special Account D - - - -Total resourcingA+B+C+D - 2,240,943 2,240,943 2,012,803Less appropriations draw n from

annual or special appropriations aboveand credited to special accountsand/or CAC Act bodies through annual appropriations (7,563) (7,563) (1,433)

Total net resourcing for Department of Employment - 2,233,380 2,233,380 2,011,370


Table 1.1: Department of Employment Resource Statement—Budget Estimates for 2014–15 as at Budget May 2014 (continued)Third party payments from and on behalf of other agencies

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2014-15 2013-14$'000 $'000

Payments made on behalf of other agencies(disclosed in the respective Agency Resource Statement) - 373,527

Receipts received from other agencies for the provision of services(disclosed above w ithin Departmental section 31) 17,454 10,270

Payments made to CAC Act bodies w ithin the Portfolio ComcareAnnual Appropriation Bill 1 - Outcome 2 7,563 1,433


1.3 BUDGET MEASURESBudget measures in Part 1 relating to the Department of Employment are detailed in Budget Paper No. 2 and are summarised below. Table 1.2: Agency 2014–15 Budget measuresPart 1: Measures announced since the 2013–14 MYEFO

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Programme 2013-14 2014-15 2015-16 2016-17 2017-18$'000 $'000 $'000 $'000 $'000

Expense measuresEfficiency Dividend - a further temporary increase of 0.25 per cent All

Administered expenses - - - - - Departmental expenses - (631) (1,261) (1,886) (1,901)

Total - (631) (1,261) (1,886) (1,901) Work for the Dole Progamme - phased approach 1.1

Administered expenses - 9,340 - - - Departmental expenses 528 5,001 - - -

Total 528 14,341 - - - Job Services Australia - restricting participation for Volunteer Job Seekers 1.1

Administered expenses - (5,373) (11,938) (16,437) (18,761) Departmental expenses - - - - -

Total - (5,373) (11,938) (16,437) (18,761) Ford Australia - assistance to w orkers - cessation 1.1

Administered expenses - (917) (916) (916) - Departmental expenses - (445) (443) (441) -

Total - (1,362) (1,359) (1,357) - Stronger compliance arrangements for job seekers w ho refuse or persistently fail to meet requirments 1.1

Administered expenses - - - - - Departmental expenses 42 78 - - -

Total 42 78 - - - Building Australia's Future Workforce Evaluation - cessation 1.1

Administered expenses (1,028) - - - - Departmental expenses - (990) - - -

Total (1,028) (990) - - - Experience+ Career Advice - cessation 1.1

Administered expenses - (1,856) (1,902) - - Departmental expenses - (81) (80) - -

Total - (1,937) (1,982) - - Local Employment Coordinator Flexible Funding Pool - reduction 1.1

Administered expenses (840) - - - - Departmental expenses - - - - -

Total (840) - - - -


Part 1: Measures announced since the 2013–14 MYEFO (continued)

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Programme 2013-14 2014-15 2015-16 2016-17 2017-18$'000 $'000 $'000 $'000 $'000

Move 2 Work - cessation 1.1 Administered expenses - (1,080) - - - Departmental expenses - - - - -

Total - (1,080) - - - Career Advice for Parents - cessation 1.1

Administered expenses - (1,261) (1,313) (1,313) (1,313) Departmental expenses - (151) (150) (150) (151)

Total - (1,412) (1,463) (1,463) (1,464) Industry Skills Fund - establishment1 1.1

Administered expenses - 2,865 4,367 2,814 1,503 Departmental expenses - - - - -

Total - 2,865 4,367 2,814 1,503 Support Services and Mutual Obligations Arrangements for Illegal Maritime Arrvials2 1.1

Administered expenses - 4,384 6,124 8,476 10,198 Departmental expenses - 144 - - -

Total - 4,528 6,124 8,476 10,198 Migration Programme - allocation of places for 2014-152 1.1

Administered expenses - - (183) (636) (939) Departmental expenses - - - - -

Total - - (183) (636) (939) Grow th Fund - establishment1 1.1

Administered expenses - - - 2,295 11,588 Departmental expenses - - - 747 377

Total - - - 3,042 11,965 Restart - boosting the w age subsidy for mature age job seekers 1.1

Administered expenses - 16,043 78,703 97,593 108,249 Departmental expenses - 622 553 548 554

Total - 16,665 79,256 98,141 108,803 Stronger participation incentives for job seekers under 303 1.1

Administered expenses - 13,274 146,949 179,192 209,662 Departmental expenses - 6,133 5,274 5,253 5,304

Total - 19,407 152,223 184,445 214,966 Disability Support Pension - review recipients aged under 35 years3 1.1

Administered expenses - 1,111 1,936 2,442 2,715 Departmental expenses - - - - -

Total - 1,111 1,936 2,442 2,715 Disability Support Pension - compulsory participation requirements for recipients aged under 35 years3 1.1

Administered expenses - 474 645 693 696 Departmental expenses - - - - -

Total - 474 645 693 696


Part 1: Measures announced since the 2013–14 MYEFO (continued)

1 The lead agency for the measure is the Department of Industry. 2 The lead agency for the measure is the Department of Immigration and Border Protection.3 The lead agency for the measure is the Department of Social Services.4 This measure includes saving of $2.0 million in 2013-14. Provision for this measure was included in the 2013-14 Mid-Year Economic and Fiscal Outlook.

Prepared on a Government Finance Statistics (fiscal) basis.

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Programme 2013-14 2014-15 2015-16 2016-17 2017-18$'000 $'000 $'000 $'000 $'000

Connection Interview s and Job Seeker Workshops - cessation 1.1

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

Total - - - - - Fair Entitlements Guarantee - aligning redundancy payments to national employment standards 2.1

Administered expenses - (10,041) (22,369) (25,758) (29,490) Departmental expenses - - - - -

Total - (10,041) (22,369) (25,758) (29,490) Ethical Clothing Australia - cessation 2.2

Administered expenses - - - - - Departmental expenses - (1,000) - - -

Total - (1,000) - - - Aw ard Modernisation Process - industry grants - cessation4 2.2

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

Total - - - - - Total expense measures

Administered (1,868) 26,963 200,103 248,445 294,108 Departmental 570 8,680 3,893 4,071 4,183

Total (1,298) 35,643 203,996 252,516 298,291 Capital measures Restart - boosting the w age subsidy for mature age job seekers 1.1

Administered capital - - - - - Departmental capital - 1,241 - - -

Total - 1,241 - - - Stronger participation incentives for job seekers under 303 1.1

Administered capital - - - - - Departmental capital - 4,685 - - -

Total - 4,685 - - -

Total capital measuresAdministered - - - - - Departmental - 5,926 - - -

Total - 5,926 - - -


SECTION 2: OUTCOMES AND PLANNED PERFORMANCE

2.1 OUTCOMES AND PERFORMANCE INFORMATION

Government outcomes are the intended results, impacts or consequences of actions by the government on the Australian community. Commonwealth programmes are the primary vehicle by which government agencies achieve the intended results of their outcome statements. Agencies are required to identify the programmes which contribute to government outcomes over the Budget and forward years.Each outcome is described below together with its related programmes, specifying the performance indicators and targets used to assess and monitor the performance of the Department of Employment in achieving government outcomes.

Outcome 1: Foster a productive and competitive labour market through employment policies and programmes that assist job seekers into work, meet employer needs and increase Australia’s workforce participation.

Outcome 1 StrategyThrough this outcome, the department assists the Australian Government to create an environment of opportunity for more Australians to gain paid employment, delivering benefits for individuals and the community. Strategies for achieving this outcome during 2014–15 include:

delivering job services that support job seekers and employers so that every Australian capable of working has access to services that help them find employment or attain the skills and experience needed to move from welfare to work as quickly as possible

providing advice and preparing for the implementation of job services beyond 30 June 2015 when current contracts expire

continuing to reduce red tape for employment services including simplifying and streamlining processes, making more efficient use of technology and increasing collaboration and use of data across government agencies

monitoring labour market conditions in Australia and providing policy advice to the government to enable employment services to reflect the needs of the community

working collaboratively with other agencies and a range of external stakeholders to bolster Australia’s productive capacity

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and ensure a consistent approach to government delivery of employment services

maintaining collaborative relationships with relevant international organisations including the OECD, APEC and the G20

providing secretariat services and co-chairing meetings of the G20 Task Force on Employment. The Task Force is coordinating the development of country-specific employment plans which will be submitted to G20 Leaders at the Brisbane Summit in November 2014.

Outcome Expense StatementTable 2.1 provides an overview of the total expenses for Outcome 1, by programme.Table 2.1: Budgeted Expenses for Outcome 1

1 The 2013–14 estimated actual expenses reflect the part year of operations since the department was established by the Administrative Arrangements Order of 18 September 2013.

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Outcome 1: Foster a productive and competitive labour 2013-14 2014-15market through employment policies and programmes Estimated Estimatedthat assist job seekers into work, meet employer needs actual expensesand increase Australia's workforce participation. expenses 1

$'000 $'000Programme 1.1: Employment ServicesAdministered expenses

Ordinary annual services (Appropriation Bill No. 1) 1,027,922 1,453,525Total for Programme 1.1 1,027,922 1,453,525

Programme 1.2: Indigenous EmploymentAdministered expenses

Ordinary annual services (Appropriation Bill No. 1) 16,946 -Total for Programme 1.2 16,946 -

Programme 1.3: Disability Employment ServicesAdministered expenses


Programme 1.4: Remote Jobs and Communities ProgrammeAdministered expenses


Outcome 1 Totals by appropriation typeAdministered Expenses

Ordinary annual services (Appropriation Bill No. 1) 1,401,449 1,453,525Departmental expenses

Departmental appropriation 2 185,286 194,603Special appropriations - -Special Accounts - -

Expenses not requiring appropriation in the Budget year 3 21,094 27,393Total expenses for Outcome 1 1,607,829 1,675,521

2013-14 2014-15Average Staffing Level (number) 1,169 1,227


2 Departmental Appropriation combines "Ordinary annual services (Appropriation Bill No. 1)" and "Revenue from independent sources (s31)".3 Expenses not requiring appropriation in the Budget year is made up of Depreciation Expense, Amortisation Expense and Audit Fees.

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Contributions to Outcome 1 Programme 1.1: Employment Services

Programme ObjectiveThis programme contributes to achieving the objectives of the outcome by delivering the Australian Government’s employment services and election commitments. Priority areas for employment services in 2014–15 include: continuing the development of new arrangements for job services,

the national service designed to get unemployed people off welfare and into work

delivering wage subsidies for employers that support job seekers to retain employment and move off income support

structural adjustment packages to support workers who are made redundant from eligible companies in the Tasmanian forestry industry, the automotive manufacturing industry, the textile, clothing and footwear industry and companies affected by restructuring at BlueScope Steel. Eligible workers receive a higher level of support through job services

providing incentives and support through the Helping Young Parents and Supporting Jobless Families trials to encourage people to participate in study, become job ready or move into paid employment. The measures aim to break the cycle of disadvantage for families and increase workforce participation and the wellbeing of participants’ children and families, particularly through better linkages to local services. The overall impacts and cost effectiveness of these, compared to similar programmes, will be evaluated.

The major election commitments overseen by the department are: the Work for the Dole programme, which will help job seekers gain

the skills and experience they need to move from welfare to work as soon as possible while at the same time making a positive contribution to their local community. A phased introduction in 2014–15 will see Work for the Dole Coordinators working with local employers and Job Services Australia providers to source Work for the Dole places around Australia

the Tasmanian Jobs Programme, from 1 January 2014 to 30 June 2016, is providing up to 2000 one-off payments of $3250 to any Tasmanian business that employs an eligible job seeker on a full-time basis for at least six months. To be eligible, job seekers must have been a resident in Tasmania for the preceding six months and be in receipt of Newstart Allowance, Youth Allowance (Other) or Parenting Payment with participation requirements for the same period

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the Relocation Assistance to Take up a Job Programme aims to encourage labour mobility by assisting long-term unemployed people to relocate to find employment. From 1 July 2014, the government will provide job seekers who have been unemployed for 12 months and meet other eligibility requirements up to $6000 if they move to a regional area to take up a job, up to $3000 if they relocate to a metropolitan area from a regional area to take up a job (or from a capital city with high unemployment to a capital city with lower unemployment). An additional $3000 may also be made available for families with dependent children

the Job Commitment Bonus will provide a financial incentive to long-term unemployed young Australians by offering a payment for remaining in work and off income support. From 1 July 2014, job seekers aged 18 to 30 who have been receiving Newstart Allowance or Youth Allowance (other) for 12 months or more will be eligible for a $2500 payment if they get a job and remain completely off welfare for a continuous period of 12 months. A further $4000 will be available if they remain in a job and completely off welfare for a continuous period of 24 months. First payments are expected from July 2015

the government acknowledges that mature age people can face barriers to finding employment, including negative community and employer attitudes. The government is committed to helping mature age job seekers into employment. From 1 July 2014, the government will deliver support to employers who hire eligible job seekers 50 years of age and over who have been unemployed for six months or more. Once the mature age worker has been continuously employed for six months, employers will receive their first subsidy payment.

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Table 2.1.1 Administered expenses for Programme 1.1


Linked to: Department of Human Services, Programme 1.1 Services to the Community – Social Security and Welfare and the Department of the Prime Minister and Cabinet, Programme 2.1 Indigenous Advancement - Jobs, Land and Economy.

Programme 1.1 Deliverables Job Services Australia helps unemployed job seekers find and retain employment and has recorded more than 1.8 million job placements since 1 July 2009. Table 2.1.1A Programme 1.1 deliverables Deliverables 2013–

14 Revised budget

2014–15

Budget

2015–16

2016–17

2017–18

Job Services AustraliaTotal job placements achieved 450,000 450,000 450,000 450,000 450,000

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2013-14 2014-15 2015-16 2016-17 2017-18Estimated Budget Forw ard Forw ard Forw ard

actual 1 estimate estimate estimate('000) $'000 $'000 $'000 $'000 $'000Annual administered expenses:

Job Services Australia 1,015,611 1,448,436 1,767,184 1,863,677 1,930,771Pacific Seasonal Worker Programme 929 1,259 1,683 1,713 1,743Regional Education, Skills and Jobs Plans 420 - - - -Mature Age Employment 7,354 3,820 3,282 3,352 3,412Productive Ageing Package 2,943 - - - -Ford Assistance Package 665 - - - -Jobs Commitment Bonus - 10 29,376 54,835 54,953

Total Programme expenses 1,027,922 1,453,525 1,801,525 1,923,577 1,990,879


Programme 1.1 Key Performance Indicators Fully eligible job seekers are assisted in one of four streams, based on their level of disadvantage in the labour market. The most job ready job seekers are assisted in Stream 1 while job seekers with severe barriers to employment are assisted in Stream 4. The programme effectiveness is measured by monitoring the proportion of job seekers in employment, education and training and movements off benefit (Newstart Allowance or Youth Allowance (other)) following assistance by the service. The cost efficiency of moving job seekers into work is also measured. Softening labour market conditions and programme changes have also impacted on a number of key performance indicators. The Stream 1, 2 and 3 three month employment and Stream 2 off benefit targets have been revised to reflect these changes. Stream 2 employment and off benefit targets were increased in previous financial years to reflect the impact of the former Compact with Retrenched Workers initiative. Following the cessation of this initiative, more redundant workers are now assisted in Stream 1. The Stream 2 results have returned to previous levels. As a result, the Stream 1 three month employment target has been increased and the Stream 2 employment and off benefit targets decreased. The Stream 3 employment target has also been increased to reflect recent trends.The performance indicators for this programme are described in Table 2.1.1B.

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Table 2.1.1B Programme 1.1 key performance indicators

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Key performance indicators

2013–14

Revised

budget

2014–15

Budget

2015–16

2016–17

2017–18

Cost per employment outcome for Employment Services delivered by Job Services Australia:Stream 1–3 $3,000 $3,000 $3,000 $3,000 $3,000Stream 4 $12,000 $12,000 $12,000 $12,000 $12,000Proportion of job seekers in employment three months following participation in Employment Services:Stream 1 55% 60% 60% 60% 60%Stream 2 50% 40% 40% 40% 40%Stream 3 30% 35% 35% 35% 35%Stream 4 25% 25% 25% 25% 25%Proportion of job seekers in education/training three months following participation in Employment Services:Stream 1 15% 15% 15% 15% 15%Stream 2 15% 15% 15% 15% 15%Stream 3 15% 15% 15% 15% 15%Stream 4 15% 15% 15% 15% 15%Proportion of job seekers off benefit three months following participation in Employment Services:Stream 1 55% 55% 55% 55% 55%Stream 2 50% 40% 40% 40% 40%Stream 3 35% 35% 35% 35% 35%Stream 4 30% 30% 30% 30% 30%Proportion of job seekers off benefit 12 months following participation in Employment Services:Stream 1 65% 65% 65% 65% 65%Stream 2 60% 50% 50% 50% 50%Stream 3 40% 40% 40% 40% 40%Stream 4 35% 35% 35% 35% 35%

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Programme 1.2 Indigenous EmploymentThis programme records the part-year effect of those functions that transferred to the Department of the Prime Minister and Cabinet as a result of the Administrative Arrangements Order that took effect on 18 September 2013.Table 2.1.2 Programme Expenses

Linked to: Department of the Prime Minister and Cabinet, Programme 2.1 Indigenous Advancement - Jobs, Land and Economy.

Programme 1.3 Disability Employment ServicesThis programme records the part-year effect of those functions that transferred to the Department of Social Services as a result of the Administrative Arrangements Order that took effect on 18 September 2013.Table 2.1.3 Programme Expenses

Linked to: Department of Social Services, Programme 5.1 Disability Employment Services and Programme 5.6 National Disability Insurance Scheme.

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actual estimate estimate estimate('000) $'000 $'000 $'000 $'000 $'000Annual administered expenses:

Indigenous Employment Program 16,946 - - - -Total Programme expenses 16,946 - - - -



Disability Employment Services 330,740 - - - -Employment Assistance and OtherServices 10,307 - - - -

Total Programme expenses 341,047 - - - -


Programme 1.4 Remote Jobs and Communities ProgrammeThis programme records the part-year effect of those functions that transferred to the Department of the Prime Minister and Cabinet as a result of the Administrative Arrangements Order that took effect on 18 September 2013.Table 2.1.4 Programme Expenses

Linked to: Department of the Prime Minister and Cabinet, Programme 2.1 Indigenous Advancement - Jobs, Land and Economy.

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Remote Participation and EmploymentServices 14,816 - - - -Remote Youth Leadership andDevelopment Corps 718 - - - -

Total Programme expenses 15,534 - - - -


Outcome 1Departmental outputs

The department supports the objectives of this outcome through policy development, programme management and provides an administrative framework that includes quality and programme assurance, purchasing and contract management, information technology and evaluation.The department is providing advice and preparing for the implementation of the new employment services model beyond 30 June 2015 when current contracts expire. Following decisions by government in due course, the department will begin implementation including required procurement activity.The department undertakes a range of reporting to evaluate the performance of programmes administered under outcome 1. In 2014–15, this is expected to include evaluations of: Job Services Australia; the employment impacts of Participation Requirements for Disability Support Pension recipients under 35 years of age; reforms to the Job Capacity Assessment Programme; Helping Young Parents; and Supporting Jobless Families. Performance information for outcome 1 departmental outputs Table 2.1.5 Outcome 1 departmental outputs performance informationPerformance indicator 2014–15

estimateClient satisfactionLevel of satisfaction of service providers with contracted information and support

80%

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Outcome 2: Facilitate jobs growth through policies that promote fair, productive and safe workplaces

Outcome 2 StrategyThrough this outcome the department supports the Australian Government to deliver a national workplace relations system to underpin jobs growth and promote fair and safe workplaces for all Australians. Strategies for achieving this outcome during 2014–15 include: providing legal and policy advice to the government on the

implementation of its workplace relations, workplace health and safety and workers compensation reform agenda

providing legal and policy advice to the government on the operation of the workplace relations framework

preparing legislation to implement government policies and developing measures that contribute to a simple and effective workplace relations system

preparing submissions and participating in hearings and inquiries on behalf of the government

contributing to higher productivity through the implementation of national approaches to workplace health and safety and workers’ compensation laws

working with employees, employers and their representative bodies, as well as state and territory governments to ensure ongoing effectiveness of the national workplace relations system

working with Australian Government agencies to support the effective operation of the workplace relations system, the safety and wellbeing of employees and gender equality in workplaces

working with other departments on issues including the Annual Wage Review, review of superannuation default funds in awards, review into Regulation of Coastal Shipping and the review of Integrity in the Subclass 457 Visa Programme

maintaining the workplace agreements database and preparing quarterly published reports

administering the Fair Entitlements Guarantee programme engaging with the International Labour Organisation, OECD and

G20 re-establishing the Australian Building and Construction

Commission and establishing the Registered Organisation Commission

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contributing to practical and common sense approaches to work health and safety.

Outcome Expense StatementTable 2.2 provides an overview of the total expenses for outcome 2 by programme.Table 2.2: Budgeted Expenses for Outcome 2

1 The 2013–14 estimated actual expenses reflect the part year of operations since the department was established by the Administrative Arrangements Order of 18 September 2013. 2 Departmental Appropriation combines "Ordinary annual services (Appropriation Bill No. 1)" and "Revenue from independent sources (s31)".3 Expenses not requiring appropriation in the Budget year comprise depreciation and amortisation expenses and audit fees.

44

Outcome 2: Facilitate jobs growth through policies that 2013-14 2014-15promote fair, productive and safe workplaces. Estimated Estimated

actual expensesexpenses 1

$'000 $'000Programme 2.1: Employee AssistanceAdministered expenses

Ordinary annual services (Appropriation Bill No. 1) 9,685 13,317Special appropriations 264,520 379,615Total for Programme 2.1 274,205 392,932

Programme 2.2: Workplace AssistanceAdministered expenses

Ordinary annual services (Appropriation Bill No. 1) 11,625 14,930Total for Programme 2.2 11,625 14,930

Programme 2.3: Workers Compensation PaymentsAdministered expenses

Ordinary annual services (Appropriation Bill No. 1) 1,433 7,563Special appropriations 40,190 65,859Total for Programme 2.3 41,623 73,422

Outcome 2 Totals by appropriation typeAdministered Expenses

Ordinary annual services (Appropriation Bill No. 1) 22,743 35,810Special appropriations 304,710 445,474

Departmental expensesDepartmental appropriation 2 72,905 77,782Special appropriations - -Special Accounts - -

Expenses not requiring appropriation in the Budget year 3 8,262 10,729Total expenses for Outcome 2 408,620 569,795

2013-14 2014-15Average Staffing Level (number) 458 489


Contributions to Outcome 2

Programme 2.1: Employee Assistance

Programme objectiveThis programme is directed at protecting employee entitlements in certain circumstances. Administered items Coal Mining Industry (Long Service Leave) Administration Act 1992

financing arrangements—under this Act the cost of portable long service leave entitlements is managed through a central fund administered by the Coal Mining Industry (Long Service Leave Funding) Corporation. Monthly levy collection transfers are made from the consolidated revenue fund to the central fund.

Fair Entitlements Guarantee—established under the Fair Entitlements Guarantee Act 2012 to provide financial assistance for certain unpaid employment entitlements when an employee loses their job through the liquidation or bankruptcy of their employer on or after 5 December 2012.

General Employee Entitlements and Redundancy Scheme—an administrative scheme which provides financial assistance for certain unpaid employment entitlements when an employee loses their job through the liquidation or bankruptcy of their employer before 5 December 2012.



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actual 1 estimate estimate estimate('000) $'000 $'000 $'000 $'000 $'000Annual administered expenses:

General Employee Entitlements andRedundancy Scheme 9,685 12,817 - - -Fair Entitlements Guarantee - 500 1,050 1,750 1,750

Special Appropriations:Coal Mining Industry (LSL) Funding Act1992 130,388 174,618 174,618 174,618 174,618Fair Entitlements Guarantee Act 2012 134,132 204,997 198,768 199,264 195,532

Total Programme expenses 274,205 392,932 374,436 375,632 371,900


Programme 2.2 Workplace Assistance

Programme objectiveTo ensure the successful operation of the workplace relations system through initiatives designed to encourage employers and employees to adopt productive and modern workplace relations. Administered items International Labour Organization (ILO)—is the Australian

Government’s annual membership subscription to the ILO. The government works with other member states and representatives from employer and employee organisations to: participate in international policy discussions on labour issues; contribute to technical cooperation in the Asia-Pacific region; report on standards at the national level; and, participate as a member of the ILO Governing Body.

Centre For Workplace Leadership—funds the government’s contribution to the Centre. The Centre focuses on strengthening Australia’s leadership capability to foster more productive workplaces.



46


actual1 estimate estimate estimate('000) $'000 $'000 $'000 $'000 $'000Annual administered expenses:

Protected Action Ballots Scheme 1,414 1,600 1,600 1,600 1,600International Labour OrganisationSubscription 7,298 9,926 9,915 9,989 10,165Leadership Institute 1,944 3,404 3,446 - -Aw ard Modernisation 969 - - - -



Programme 2.3 Workers’ Compensation PaymentsThe Safety Rehabilitation and Compensation Act 1988—s90D is appropriated for the purposes of Comcare’s outcome 2: ‘An early and safe return to work and access to compensation for injured workers covered by the Comcare scheme through working in partnership with employers to create best practice in rehabilitation and quick and accurate management of workers’ compensation claims.’ Programme objectives Timely, responsive and appropriate management of workers’

compensation claims. Recovery and support information and services for workers with an

injury which support their return to health, return to work and return to independence.

Continuous improvement in injury management practices and return to work performance.

Decision-making leading to fair and equitable compensation. Management of claims liabilities within an appropriate framework.Programme expenses The Special Appropriation under s90D of the Safety, Rehabilitation

and Compensation Act 1988 relates to workers’ compensation claims that were accepted prior to the establishment of the Comcare premium scheme on 1 July 1989. The costs of these claims are funded from the Consolidated Revenue Fund.

Expenses for claims accepted since 1 July 1989 are funded from premium revenue paid to Comcare and do not require appropriation.



47


actual1 estimate estimate estimate('000) $'000 $'000 $'000 $'000 $'000Annual administered expenses:

Comcare 1,433 7,563 7,507 6,052 6,111Special Appropriations:

Asbestos related claims Act 2005 9,858 26,356 30,031 31,586 32,543Safety, Rehabilitation & CompensationAct 1998 30,332 39,503 38,282 36,449 34,885



Programme deliverablesThe programme deliverables for this outcome are: compensation decisions are consistent, prompt and fair disputes are resolved quickly, fairly and at a low cost expectations of employers’ roles and responsibilities as

rehabilitation authorities are clear and are supported by targeted audits and regulatory activity

Comcare operates efficiently to deliver value for money.Programme key performance indicators The performance indicators for this outcome are described in the Table 2.2.3A.Table 2.2.3A Programme 2.3 key performance indicators

Performance indicator 2013–14

2014–15

Durable return to work rate (i.e. the percentage of injured workers from premium paying organisations, with ten or more days lost time, who had submitted a claim 7 to 9 months prior to interview, and who were working in a paid job at the time of the interview)

89% 90%

Funding ratio (i.e. percentage of premium-related total assets to premium-related total liabilities)

70% 71%

Commonwealth average premium rate 1.82 2.12Employer satisfaction with recovery and support services

57% 61%

Injured worker satisfaction with recovery and support services

79% 81%

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Outcome 2 Effectiveness IndicatorsData is not provided for deliverables because the administered items address legal or administrative issues rather than advancing major government initiatives. The following data is the latest available at the time of writing.Table 2.2.3B Outcome 2 effectiveness indicators

December quarter

2012

December quarter

2013

Comments

The federal workplace relationship system supports improved productivity outcomesProductivity as measured by output per hour worked in the market sector (annual per cent growth, trend terms)

2.5 1.8 Productivity growth numbers

may be subject to revision

ABS Wage Price Index (annual per cent growth, seasonal adjusted terms)

3.4 2.6

Low incidence of industrial action (allowing for variations in the bargaining cycle)Working days lost per thousand employees (annual WDL/1000E)

26.7 12.6 Working days lost is volatile and

should be treated with caution

Collective bargaining is widely used by employers and employees to negotiate pay and conditionsNumber of current enterprise agreements under the Fair Work Act 2009

23,576 agreements covering an

estimated 2.57 million employees (current as

at 31 December

2012)

23,236 agreements covering an

estimated 2.62 million employees

(current as at 31 December

2013)

Number of current enterprise

agreements is slightly lower as at 31 December 2013 because of

industry bargaining cycles and a longer term

decline in agreement

making in the Retail and

Accommodation and Food Services

industries.

49


Outcome 2 Departmental outputsThe majority of the activities supporting Outcome 2 are funded through departmental appropriations. In 2014–15 the department will: provide legal and policy advice on the operation of the national

workplace relations system including: developments in enterprise bargaining; wages and conditions; and workplace flexibility

support the passage of legislation to re-establish the Australian Building and Construction Commission and issue a revised building code setting out the government’s expectations of workplace relations behaviour on construction projects funded by the Commonwealth

provide legal and policy advice on the implementation of reforms to the Fair Work Act 2009 and Fair Work (Registered Organisations) Act 2009 and other election commitments

develop implementation strategies in response to recommendations made by the 2013 Safety, Rehabilitation and Compensation Act Review to ensure equitable, effective and cost-effective compensation within the Comcare scheme including through amendments to the Safety, Rehabilitation and Compensation Act 1988

continue to work with the building and construction industry to improve workplace health and safety, including the implementation of the government’s response to recommendations arising from the review of the Office of the Federal Safety Commissioner and the Australian Government Building and Construction OHS Accreditation Scheme

work with the Asbestos Safety and Eradication Agency, Comcare, Fair Work Commission, Fair Work Building Industry Inspectorate, Fair Work Ombudsman, Safe Work Australia and the Workplace Gender Equality Agency to reduce unnecessary regulatory and administrative burdens for business

provide legal and policy advice on key matters before industrial tribunals and the courts and pursue strategic interventions

contribute to reviews initiated by the Fair Work Commission including the 2015 Annual Wage Review and four yearly review of modern awards

contribute to reviews including the Productivity Commission review of the Fair Work framework and the Royal Commission into Trade Union Governance and Corruption

administer claims for financial assistance under the Fair Entitlements Guarantee Act 2012 and the legacy administrative scheme, the General Employee Entitlements and Redundancy

50


Scheme (GEERS), to protect certain unpaid employee entitlements where employees lose their employment due to the liquidation or bankruptcy of their employer

administer the Centre for Workplace Leadership Fund to encourage higher performing and innovative workplaces by strengthening Australia’s leadership capability

engage strategically with relevant international organisations such as the ILO, OECD and G20 on workplace relations policy issues to advance Australia’s interests.

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Table 2.2.3C Outcome 2 departmental outputs performance informationPerformance indicator

2013–14 estimate 2014–15 estimate

Programme managementFair Entitlements Guarantee—timeliness of processing claims

90% of requests for verified entitlement

data are initiated within two weeks of claim

receipt or liquidation date (whichever is

later)90% of eligibility and

advance decisions made within four weeks

of receiving verified entitlement data

90%of requests for verified entitlement

data are initiated within two weeks of claim

receipt or liquidation date (whichever is later)

90% of eligibility and advance decisions

made within four weeks of receiving verified

entitlement data

Fair Entitlements Guarantee—accuracy of processing claims

90% of eligibility and advance decisions are

accurate having regard to the information

available when making the decision

90% of eligibility and advance decisions are

accurate having regard to the information

available when making the decision

Fair Entitlements Guarantee—stakeholder satisfaction

80% of stakeholders (insolvency

practitioners) are satisfied with the

administration of FEG

80% of stakeholders (insolvency

practitioners) are satisfied with the

administration of FEGTimeliness of departmental responses to client requests for assessment of industrial instruments against the code and guidelines

95% completed within 10 working days

95% completed within five working days

Level of satisfaction of clients with the provision of advice, information, education and promotion of safer workplaces on Australian Government construction sites by the Office of the Federal Safety Commissioner

Effective or above Effective or above

Office of the Federal Safety Commissioner—timeliness of responding to initial applications for accreditation

Not applicable More than 90% of accreditation

applications are assessed and contact is made with the applicant

52


Performance indicator

2013–14 estimate 2014–15 estimate

within 10 working days

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Section 3: Explanatory Tables and Budgeted Financial StatementsSection 3 presents explanatory tables and budgeted financial statements which provide a comprehensive snapshot of agency finances for the 2014–15 budget year. It explains how budget plans are incorporated into the financial statements and provides further details of the reconciliation between appropriations and programme expenses, movements in administered funds, special accounts and Australian Government Indigenous expenditure.

3.1 EXPLANATORY TABLES

3.1.1 Movement of Administered Funds Between YearsThe department has no movement of administered funds. For this reason Table 3.1.1 is not presented.3.1.2 Special AccountsThe department currently has no special accounts. For this reason Table 3.1.2 is not presented.3.1.3 Australian Government Indigenous ExpenditureTable 3.1.3: Australian Government Indigenous Expenditure (AGIE)

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Outcome Other Total ProgrammeBill Bill Special Total

No. 1 No. 2 approp approp$'000 $'000 $'000 $'000 $'000 $'000

Department ofEmploymentOutcome 1Administered 2014-15 - - - - - -Administered 2013-14 32,480 - - 32,480 - 32,480 1.2, 1.4Departmental 2014-15 - - - - - -Departmental 2013-14 6,932 - - 6,932 - 6,932Total outcome 2014-15 - - - - - -Total outcome 2013-14 39,412 - - 39,412 - 39,412Total administered 2014-15 - - - - - -Total administered 2013-14 32,480 - - 32,480 - 32,480Total departmental 2014-15 - - - - - -Total departmental 2013-14 6,932 - - 6,932 - 6,932Total AGIE 2014-15 - - - - - -Total AGIE 2013-14 39,412 - - 39,412 - 39,412

Appropriations


3.2 BUDGETED FINANCIAL STATEMENTS

3.2.1 Differences in Agency Resourcing and Financial Statements3.2.2 Analysis of Budgeted Financial StatementsAn analysis of the department’s budgeted financial statements, which consists of the budgeted departmental financial statements and administered schedules, is provided below. The 2013-14 estimated actual expenses and average staffing level reflect the part year of operations since the department was established following the Administrative Arrangements Order made on 18 September 2013.Departmental financial statementsIncome StatementThe department’s income statement reflects a deficit in 2013–14. This deficit is solely attributable to the depreciation expense for the year.Expenses for 2014–15 are estimated to be $310.5 million. This reflects an increase of $23.0 million from the estimated actual expense for 2013-14 and is predominantly due to the impact of budget measures and the Machinery of Government changes that took effect on 18 September 2013.Balance SheetThe budgeted net asset position of $131.4 million for 2014–15 represents a small decrease of $4 million from the 2013–14 estimated actual. The accumulated deficit apparent in the balance sheet represents the accounting treatment applicable to depreciation expense.The structure of the balance sheet reflects the nature of the organisation. Key assets are office fit-out (included in land and buildings), computer and office machines (included in infrastructure, plant and equipment), and computer software (included in intangibles). The most significant liability relates to employees and the leave provisions that are accrued as a result of their employment.Administered StatementsIncome StatementAdministered revenue for the 2014–15 budget year is estimated to be $193.3 million, an increase of $44.2 million from the 2013-14 estimated actual. This relates to the department’s revised budgeted revenue in light of Machinery of Government changes referred to above.

55


Administered expenses in 2014–15 are estimated to be $1.9 billion, a slight increase of $0.2 billion from the 2013–14 estimated actual. This increase is attributable to a number of budget measures and programme parameters.

56


Balance SheetThe minor variations in the balance sheet are as a result of changes in prepayments and payables, which reflect the timing of payments of personal benefits and other payables from year to year.

57


3.2.3 Budgeted Financial Statements TablesTable 3.2.1 Comprehensive Income Statement (Showing Net Cost of Services) for the period ended 30 June

58

Estimated Budget Forw ard Forw ard Forw ardactual estimate estimate estimate estimate

2013-14 2014-15 2015-16 2016-17 2017-18$'000 $'000 $'000 $'000 $'000

EXPENSESEmployee benefits 181,325 192,604 187,944 188,230 189,666Suppliers 77,631 80,801 79,096 77,840 78,604Depreciation and amortisation 28,591 37,102 37,102 37,102 37,102Total expenses 287,547 310,507 304,142 303,172 305,372LESS: OWN-SOURCE INCOMEOwn-source revenueSale of goods and rendering of services 10,270 17,454 17,454 17,454 17,454Total own-source revenue 10,270 17,454 17,454 17,454 17,454GainsSale of assetsOther 765 1,020 1,020 1,020 1,020Total gains 765 1,020 1,020 1,020 1,020Total own-source income 11,035 18,474 18,474 18,474 18,474Net cost of (contribution by)

services 276,512 292,033 285,668 284,698 286,898Revenue from Government 247,921 254,931 248,566 247,596 249,796Surplus (Deficit) attributable to

the Australian Government (28,591) (37,102) (37,102) (37,102) (37,102)OTHER COMPREHENSIVE INCOMEChanges in asset revaluation surplus - - - - -Total other comprehensive income - - - - -Total comprehensive income (loss) (28,591) (37,102) (37,102) (37,102) (37,102)Total comprehensive income (loss)

attributable to the Australian Government (28,591) (37,102) (37,102) (37,102) (37,102)


Table 3.2.1 Comprehensive Income Statement (Showing Net Cost of Services) for the period ended 30 June (continued)

1 From 2010-11, the government introduced net cash appropriation arrangements where Bill 1 revenue appropriations for the depreciation/amortisation expenses of FMA Act agencies were replaced with a separate capital budget (the Departmental Capital Budget, or DCB) provided through Bill 1 equity appropriations. For information regarding DCBs, please refer to Table 3.2.5 Departmental Capital Budget Statement.

Prepared on Australian Accounting Standards basis.

59

Note: Impact of Net Cash Appropriation Arrangements2013-14 2014-15 2015-16 2016-17 2017-18

$'000 $'000 $'000 $'000 $'000Total Comprehensive Income

(loss) excluding depreciation/amortisationexpenses previously funded throughrevenue appropriations. - - - - -

less depreciation/amortisation expensespreviously funded through revenueappropriations1 28,591 37,102 37,102 37,102 37,102

Total Comprehensive Income (loss) - as per the Statement ofComprehensive Income (28,591) (37,102) (37,102) (37,102) (37,102)


Table 3.2.2: Budgeted Departmental Balance Sheet (as at 30 June)

60


2013-14 2014-15 2015-16 2016-17 2017-18$'000 $'000 $'000 $'000 $'000

ASSETSFinancial assets

Cash and cash equivalents 2,768 2,768 2,768 2,768 2,768Trade and other receivables 71,207 71,137 71,103 71,094 71,072Other financial assets 4,111 4,111 4,111 4,111 4,111

Total financial assets 78,086 78,016 77,982 77,973 77,951 Non-financial assets

Land and buildings 46,232 38,263 35,472 30,092 24,712Property, plant and equipment 19,065 20,318 17,560 17,252 16,944Intangibles 72,657 75,371 70,776 66,861 62,946Other non-f inancial assets 15,941 15,941 15,941 15,941 15,941

Total non-financial assets 153,895 149,893 139,749 130,146 120,543 Assets held for sale

Total assets 231,981 227,909 217,731 208,119 198,494 LIABILITIESPayables

Suppliers 8,019 8,019 8,019 8,019 8,019Other payables 26,902 26,902 26,902 26,902 26,902

Total payables 34,921 34,921 34,921 34,921 34,921 Provisions

Employee provisions 60,451 60,380 60,347 60,339 60,318Other provisions 1,235 1,235 1,235 1,235 1,235

Total provisions 61,686 61,615 61,582 61,574 61,553 Total liabilities 96,607 96,536 96,503 96,495 96,474 Net assets 135,374 131,373 121,228 111,624 102,020


Table 3.2.2: Budgeted Departmental Balance Sheet (as at 30 June) (continued)

* 'Equity' is the residual interest in assets after deduction of liabilities.


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2013-14 2014-15 2015-16 2016-17 2017-18$'000 $'000 $'000 $'000 $'000

EQUITY*Parent entity interest

Contributed equity 137,953 171,054 198,011 225,509 253,007Reserves 26,012 26,012 26,012 26,012 26,012Retained surplus

(accumulated def icit) (28,591) (65,693) (102,795) (139,897) (176,999)Total parent entity interest 135,374 131,373 121,228 111,624 102,020Total Equity 135,374 131,373 121,228 111,624 102,020


Table 3.2.3: Departmental Statement of Changes in Equity—Summary of Movement (Budget Year 2014–15)


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Retained Asset Other Contributed Totalearnings revaluation reserves equity/ equity

reserve capital$'000 $'000 $'000 $'000 $'000

Opening balance as at 1 July 2014Balance carried forw ard from

previous period (28,591) 26,012 - 137,953 135,374Adjustment for changes in

accounting policies - - - - -Adjusted opening balance (28,591) 26,012 - 137,953 135,374Comprehensive income

Other comprehensive income - - - - -Surplus (deficit) for the period (37,102) - - - (37,102)

Total comprehensive income (37,102) - - - (37,102)of w hich:

Attributable to the Australian Government - - - - -Attributable to non-controlling interest - - - - -

Transactions with ownersContributions by owners

Equity Injection - Appropriation - - - 5,926 5,926Departmental Capital Budget (DCBs) - - - 27,174 27,174Restructuring - - - 1 1

Sub-total transactions with owners - - - 33,101 33,101Transfers betw een equity

components - - - - -Estimated closing balance

as at 30 June 2015 (65,693) 26,012 - 171,054 131,373Less: non-controlling interests - - - - -

Closing balance attributable to the Australian Government (65,693) 26,012 - 171,054 131,373


Table 3.2.4: Budgeted Departmental Statement of Cash Flows (for the period ended 30 June)

63


2013-14 2014-15 2015-16 2016-17 2017-18$'000 $'000 $'000 $'000 $'000

OPERATING ACTIVITIESCash received

Appropriations 247,901 254,861 248,532 247,587 249,774Sale of goods and rendering of services 10,270 17,454 17,454 17,454 17,454

Total cash received 258,171 272,315 265,986 265,041 267,228Cash used

Employees 181,305 192,534 187,910 188,221 189,644Suppliers 76,866 79,781 78,076 76,820 77,584

Total cash used 258,171 272,315 265,986 265,041 267,228Net cash from (used by)

operating activities - - - - -INVESTING ACTIVITIESCash received

Proceeds from sales of property,plant and equipment - - - - -

Total cash received - - - - -Cash used

Purchase of property, plant and equipment 23,392 33,100 26,958 27,499 27,499

Other - - - - -Total cash used 23,392 33,100 26,958 27,499 27,499Net cash from (used by)

investing activities (23,392) (33,100) (26,958) (27,499) (27,499)


Table 3.2.4: Budgeted Departmental Statement of Cash Flows (for the period ended 30 June) (continued)


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2013-14 2014-15 2015-16 2016-17 2017-18$'000 $'000 $'000 $'000 $'000

FINANCING ACTIVITIESCash received

Contributed equity 23,392 33,100 26,958 27,499 27,499Total cash received 23,392 33,100 26,958 27,499 27,499Cash used

Other - - - - -Total cash used - - - - -Net cash from (used by)

financing activities 23,392 33,100 26,958 27,499 27,499Net increase (decrease)

in cash held - - - - -Cash and cash equivalents at the

beginning of the reporting period 2,768 2,768 2,768 2,768 2,768Effect of exchange rate movements

on cash and cash equivalents at the beginning of reporting period - - - - -

Cash and cash equivalents at the end of the reporting period 2,768 2,768 2,768 2,768 2,768


Table 3.2.5: Departmental Capital Budget Statement

1 Includes both current Bill 2 and prior Act 2/4/6 appropriations 2 Does not include annual finance lease costs. Includes purchase from current and previous years' Departmental Capital Budgets (DCBs).


65


2013-14 2014-15 2015-16 2016-17 2017-18$'000 $'000 $'000 $'000 $'000

NEW CAPITAL APPROPRIATIONSCapital budget - Bill 1 (DCB) 21,265 27,174 26,958 27,499 27,499Equity injections - Bill 2 2,127 5,926 - - -

Total new capital appropriations 23,392 33,100 26,958 27,499 27,499

Provided for:Purchase of non-f inancial assets 23,392 33,100 26,958 27,499 27,499

Total Items 23,392 33,100 26,958 27,499 27,499PURCHASE OF NON-FINANCIAL

ASSETSFunded by capital appropriations 1 2,127 5,926 - - -

Funded by capital appropriation - DCB 2 21,265 27,174 26,958 27,499 27,499TOTAL 23,392 33,100 26,958 27,499 27,499RECONCILIATION OF CASH

USED TO ACQUIRE ASSETSTO ASSET MOVEMENT TABLE

Total purchases 23,392 33,100 26,958 27,499 27,499Total cash used to

acquire assets 23,392 33,100 26,958 27,499 27,499


Table 3.2.6: Statement of Asset Movements (2014–15)

1 "Appropriation equity" refers to equity injections or Administered Assets and Liabilities appropriations provided through Appropriation Bill (No.2) 2014-15, including CDABs.


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Land Buildings Other property, Computer Totalplant and softw are and

equipment intangibles$'000 $'000 $'000 $'000 $'000

As at 1 July 2014Gross book value - 53,339 22,628 90,578 166,545Accumulated depreciation/amortisation

and impairment - (7,107) (3,563) (17,921) (28,591)Opening net book balance - 46,232 19,065 72,657 137,954CAPITAL ASSET ADDITIONSEstimated expenditure on

new or replacement assetsBy purchase - appropriation equity 1 - 1,500 6,000 25,600 33,100Total additions - 1,500 6,000 25,600 33,100Other movementsAssets held for sale or in a disposal

group held for sale - - - - -Depreciation/amortisation expense - (9,469) (4,747) (22,886) (37,102)Total other movements - (9,469) (4,747) (22,886) (37,102)As at 30 June 2015Gross book value - 54,839 28,628 116,178 199,645Accumulated depreciation/amortisation

and impairment - (16,576) (8,310) (40,807) (65,693)Closing net book balance - 38,263 20,318 75,371 133,952


Table 3.2.7: Schedule of Budgeted Income and Expenses Administered on Behalf of Government (for the period ended 30 June)


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2013-14 2014-15 2015-16 2016-17 2017-18$'000 $'000 $'000 $'000 $'000

EXPENSES ADMINISTERED ONBEHALF OF GOVERNMENTSuppliers 1,401,632 1,472,313 1,820,853 1,943,679 2,011,157Subsidies 138,252 174,618 174,618 174,618 174,618Personal benefits 143,817 211,052 192,005 192,501 188,769Grants 43,768 69,263 71,759 68,035 67,428Payments to CAC Bodies 1,433 7,563 7,507 6,052 6,111

Total expenses administeredon behalf of Government 1,728,902 1,934,809 2,266,742 2,384,885 2,448,083

LESS:OWN-SOURCE INCOMEOwn-source revenueTaxation revenue

Other taxes 130,388 174,618 174,618 174,618 174,618Total taxation revenue 130,388 174,618 174,618 174,618 174,618Non-taxation revenue

Other revenue 18,725 18,725 18,725 18,725 18,725Total non-taxation revenue 18,725 18,725 18,725 18,725 18,725Total own-source revenues

administered on behalf of Government 149,113 193,343 193,343 193,343 193,343

GainsOther gains - - - - -

Total gains administeredon behalf of Government - - - - -

Total own-sourced incomeadministered on behalf ofGovernment 149,113 193,343 193,343 193,343 193,343

Net Cost of (contribution by)services 1,579,789 1,741,466 2,073,399 2,191,542 2,254,740

Surplus (Deficit) (1,579,789) (1,741,466) (2,073,399) (2,191,542) (2,254,740)OTHER COMPREHENSIVE INCOME

Changes in asset revaluation surplusTotal other comprehensive income - - - - -Total comprehensive income (loss) (1,579,789) (1,741,466) (2,073,399) (2,191,542) (2,254,740)


Table 3.2.8: Schedule of Budgeted Assets and Liabilities Administered on Behalf of Government (as at 30 June)

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2013-14 2014-15 2015-16 2016-17 2017-18$'000 $'000 $'000 $'000 $'000


Trade and other receivables 41,146 41,406 41,406 41,406 41,406Total financial assets 41,146 41,406 41,406 41,406 41,406Non-financial assets

Other non-f inancial assets 4,969 4,957 4,957 5,032 5,133Total non-financial assets 4,969 4,957 4,957 5,032 5,133

Assets held for saleTotal assets administered

on behalf of Government 46,115 46,363 46,363 46,438 46,539LIABILITIESPayables

Suppliers 42,435 42,435 42,435 42,435 42,435Subsidies 28,427 28,427 28,427 28,427 28,427Personal benefits 3,603 3,352 3,352 3,352 3,352Other payables 2,787,862 2,787,472 2,785,098 2,785,934 2,788,256

Total payables 2,862,327 2,861,686 2,859,312 2,860,148 2,862,470Interest bearing liabilities

Loans 10,000 10,000 10,000 10,000 10,000Total interest bearing l iabilities 10,000 10,000 10,000 10,000 10,000


Table 3.2.8: Schedule of Budgeted Assets and Liabilities Administered on Behalf of Government (as at 30 June) (continued)


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2013-14 2014-15 2015-16 2016-17 2017-18$'000 $'000 $'000 $'000 $'000

ProvisionsEmployee provisions - - - - -

Total provisions - - - - -Liabilities included in disposal

groups held for sale - - - - -Total liabilities administered

on behalf of Government 2,872,327 2,871,686 2,869,312 2,870,148 2,872,470Net assets/(liabilities) (2,826,212) (2,825,323) (2,822,949) (2,823,710) (2,825,931)


Table 3.2.9: Schedule of Budgeted Administered Cash Flows (for the period ended 30 June)

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2013-14 2014-15 2015-16 2016-17 2017-18$'000 $'000 $'000 $'000 $'000


Taxes 130,388 174,618 174,618 174,618 174,618Net GST received 120,000 120,000 120,000 120,000 120,000Other 18,725 18,725 18,725 18,725 18,725


Grant 45,201 76,826 79,266 74,087 73,539Subsidies paid 138,252 174,618 174,618 174,618 174,618Personal benefits 143,817 211,052 192,005 192,501 188,769Suppliers 1,404,271 1,472,301 1,820,853 1,943,754 2,011,258Net GST paid 120,000 120,000 120,000 120,000 120,000

Total cash used 1,851,541 2,054,797 2,386,742 2,504,960 2,568,184Net cash from (used by)

operating activities (1,582,428) (1,741,454) (2,073,399) (2,191,617) (2,254,841)INVESTING ACTIVITIESCash received

Repayments of advances and loans - - - - -Total cash received - - - - -


Table 3.2.9: Schedule of Budgeted Administered Cash Flows (for the period ended 30 June) (continued)


3.2.10 Schedule of Administered Capital BudgetThe department has no administered capital purchases to report. For this reason Table 3.2.10 is not presented.3.2.11 Schedule of Asset Movements—Administered The department has no administered non-financial assets to report. For this reason Table 3.2.11 is not presented.

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2013-14 2014-15 2015-16 2016-17 2017-18$'000 $'000 $'000 $'000 $'000

Cash usedOther - - - - -

Total cash used - - - - -Net cash from (used by)

investing activities - - - - -Net increase (decrease) in

cash held (1,582,428) (1,741,454) (2,073,399) (2,191,617) (2,254,841)Cash from Official Public Account for:

- Appropriations 1,731,541 1,934,797 2,266,742 2,384,960 2,448,1841,731,541 1,934,797 2,266,742 2,384,960 2,448,184

Cash to Official Public Account for:- Appropriations 149,113 193,343 193,343 193,343 193,343

149,113 193,343 193,343 193,343 193,343Cash and cash equivalents at endof reporting period - - - - -

Asbestos Safety and Eradication Agency


ASBESTOS SAFETY AND ERADICATION AGENCY

Section 1: Agency Overview and Resources.................................731.1 Strategic Direction Statement.........................................................731.2 Agency Resource Statement...........................................................741.3 Budget Measures............................................................................76Section 2: Outcomes and Planned Performance...........................772.1 Outcomes and Performance Information........................................77Section 3: Explanatory Tables and Budgeted Financial Statements................................................................................803.1 Explanatory Tables.........................................................................803.2 Budgeted Financial Statements......................................................81

71

ASEA Budget Statements 2014–15

ASBESTOS SAFETY AND ERADICATION AGENCY



The Asbestos Safety and Eradication Agency (ASEA) was established by the Asbestos Safety and Eradication Agency Act 2013. ASEA operates under the Australian Government’s accountability and governance frameworks. ASEA is Australia’s national agency dedicated to working with jurisdictions and stakeholders to create a nationally consistent approach to the eradication, handling and awareness of asbestos. ASEA provides a national focus on asbestos issues which go beyond workplace safety to encompass environmental and public health issues.ASEA is managed by a Chief Executive Officer (CEO) and supported by the Asbestos Safety and Eradication Council. The council has nine members and a chair, and the CEO of ASEA participates in council meetings. One position on the council is reserved for an Australian Government representative and four positions reserved for a state, territory or local government representative.The agency and the council work to administer the National Strategic Plan for Asbestos Awareness and Management (NSP) which aims to prevent exposure to asbestos fibres in order to eliminate asbestos-related disease in Australia. The NSP establishes a five year framework for this work. The agency is also responsible for the administration of the National Asbestos Exposure Register as well as other broad functions including: reviewing and amending the NSP as required publishing and promoting the NSP providing advice to the Minister about asbestos safety liaising with Commonwealth, state, territory and local and other

governments, agencies or bodies about the implementation, review or amendment of the NSP; as well as asbestos safety in general

commissioning, monitoring and promoting research about asbestos safety.

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The Agency Resource Statement details the resourcing for the Asbestos Safety and Eradication Agency at Budget Estimates. Table 1.1 outlines the total resourcing available from all sources for the 2014–15 Budget year. Table 1.1: Asbestos Safety and Eradication Agency Resource Statement—Budget Estimates for 2014–15 as at Budget May 2014

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2014-15 2014-15 2014-15 2013-14$'000 $'000 $'000 $'000


Departmental appropriationPrior year departmental appropriation2

Departmental appropriation - 4,914 4,914 5,442Total - 4,914 4,914 5,442

Total ordinary annual services A - 4,914 4,914 5,442Other services3

Departmental non- operatingEquity injections - - - 183Total - - - 183

Total other services B - - - 183Total available annual

appropriations - 4,914 4,914 5,625Special appropriationsTotal special appropriations C - - - -Total appropriations excluding

Special Accounts - 4,914 4,914 5,625


Table 1.1: Asbestos Safety and Eradication Agency Resource Statement—Budget Estimates for 2014–15 as at Budget May 2014(continued)

1 Appropriation Bill (No.1) 2014-152 Estimated adjusted balance carried forward from previous year3 Appropriation Bill (No.2) 2014-15


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2014-15 2014-15 2014-15 2013-14$'000 $'000 $'000 $'000

Special Accounts - - - -Total Special Account D - - - -Total resourcingA+B+C+D - 4,914 4,914 5,625Less appropriations drawn from

annual or special appropriations aboveand credited to special accountsand/or CAC Act bodies through annual appropriations - - - -

Total net resourcing for agency - 4,914 4,914 5,625


1.3 BUDGET MEASURES

Budget measures in Part 1 relating to the Asbestos Safety and Eradication Agency are detailed in Budget Paper No. 2 and are summarised below. Table 1.2: Agency 2014–15 Budget measuresPart 1: Measures announced since the 2013–14 MYEFO


76

Programme 2013-14 2014-15 2015-16 2016-17 2017-18$'000 $'000 $'000 $'000 $'000

Expense measures Efficiency Dividend - a further temporary increase of 0.25 per cent All

Administered expenses - - - - - Departmental expenses - (12) (16) (20) (20)

Total - (12) (16) (20) (20) Total expense measures

Administered - - - - - Departmental - (12) (16) (20) (20)

Total - (12) (16) (20) (20)




Government outcomes are the intended results, impacts or consequences of actions by the government on the Australian community. Commonwealth programmes are the primary vehicle by which government agencies achieve the intended results of their outcome statements. Agencies are required to identify the programmes which contribute to government outcomes over the Budget and forward years.Each outcome is described below together with its related programmes, specifying the performance indicators and targets used to assess and monitor the performance of ASEA in achieving government outcomes.

Outcome 1: Assist in the prevention of exposure to asbestos fibres and the elimination of asbestos-related disease in Australia through implementing the National Strategic Plan for Asbestos Awareness and Management in Australia.

Outcome 1 StrategyThe Asbestos Safety and Eradication Agency works with the Australian Government, state, territory and local governments and a wide range of stakeholders so that the following priority areas are addressed at a national level: the systematic identification of asbestos-containing material (ACMs)

in the built environment and of asbestos disposal sites systems, timelines and processes are established for the prioritised

safe removal of asbestos-containing material from public and commercial buildings and the safe disposal of such material

measures are developed to assist the residential sector to minimise the risks of asbestos, including raising awareness, education and mechanisms for identifying and classifying risks associated with asbestos

improving education and information about asbestos improving asbestos safety improving the sharing of information about asbestos and asbestos

safety.

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Outcome Expense StatementTable 2.1 provides an overview of the total expenses for outcome 1, by programme.Table 2.1: Budgeted Expenses for Outcome 1

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


Programme 1: Asbestos Safety and Eradication Agency

Programme ObjectiveThe objective of the Asbestos Safety and Eradication Agency is to implement, review, publish and promote the National Strategic Plan for Asbestos Awareness and Management (NSP); coordinate and liaise with Australian Government, state, territory, local and other governments, agencies or bodies about asbestos safety and the implementation, review or amendment of the NSP; and commission and monitor and promote research about asbestos safety in Australia and internationally.To be able to meet its objectives, the agency works collaboratively with regulators, industry and agencies and bodies across the work environment, public health and building and construction sectors that work with asbestos and asbestos safety, and the community to achieve improved awareness of asbestos safety.The Act prescribes that the agency performs its functions in accordance with the National Strategic Plan and its annual Operational Plans. These plans are approved by the Asbestos Safety and Eradication Council and the Minister for Employment.

78

2013-14 2014-15Estimated Estimated

actual expensesexpenses

$'000 $'000Programme 1.1: Departmental expenses

Departmental appropriation 1 5,442 4,914Total for Programme 1.1 5,442 4,914

Total expenses for Outcome 1 5,442 4,9142013-14 2014-15

Average Staffing Level (number) 7 7

Outcome 1: Assist in the prevention of exposure to asbestos fibres and the elimination of asbestos-related disease in Australia through implementing the National Strategic Plan for Asbestos Aw areness and Management in Australia


Programme ExpensesTable 2.1.1 Programme 1 expenses

Programme 1 Deliverables The deliverables for the Asbestos Safety and Eradication Agency are highlighted in the National Strategic Plan for Asbestos Awareness and Management and are structured under the following strategies: Awareness: Increase public awareness of the health dangers posed

by working with or being exposed to asbestos leading to long term behavioural change.

Best practice: Best practice in asbestos handling and management identified and shared nationally.

Identification: Location and condition of asbestos-containing materials in government and commercial buildings identified and recorded.

Removal: Development and implementation of an asbestos removal programme across Australia, with priority given to the removal of high risk asbestos-containing materials.

Research: Coordinated national research on asbestos exposure, and prevention and treatment of asbestos-related diseases.

International leadership: Australia to continue to play a leadership role in a global campaign for a worldwide asbestos ban.

Programme 1 Key Performance Indicators The key performance indicators are framed around the strategies the agency has put in place to achieve its outcome and the strategies contained within the National Strategic Plan for Asbestos Awareness and Management.Assess the current level of asbestos awareness within community groups by June 2015. Facilitate the sharing of information about asbestos and asbestos

safety by June 2015. Examine best practise in asbestos-grading techniques for in-situ

asbestos across Australian jurisdictions by June 2015. Develop best practice in asbestos related training for use by

specified sectors by June 2017.

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actual estimate estimate estimate('000) $'000 $'000 $'000 $'000 $'000Annual departmental expenses:

Annual Appropriation 5,442 4,914 3,273 2,627 2,651Total Programme expenses 5,442 4,914 3,273 2,627 2,651




3.1.1 Movement of Administered Funds Between YearsASEA has no movement of administered funds. For this reason Table 3.1.1 is not presented.3.1.2 Special AccountsASEA has no special accounts. For this reason Table 3.1.2 is not presented.3.1.3 Australian Government Indigenous ExpenditureASEA has no Australian Government Indigenous Expenditure. For this reason Table 3.1.3 is not presented.

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3.2.1 Differences in Agency Resourcing and Financial Statements3.2.2 Analysis of Budgeted Financial StatementsThe Asbestos Safety and Eradication Agency is budgeting for a zero operating result in 2014–15 and the three forward years. Total revenue is estimated to be $4.9 million in 2014–15, and total expenses to be $4.9 million. Total assets for 2014–15 are estimated to be $0.25 million. The majority of assets represent appropriations receivables and property, plant and equipment. Total liabilities for 2014–15 are estimated to be $0.07 million. The largest liabilities are accrued employee entitlements.

81




82


2013-14 2014-15 2015-16 2016-17 2017-18$'000 $'000 $'000 $'000 $'000

EXPENSESEmployee benefits 1,396 1,281 1,250 1,244 1,256Suppliers 4,046 3,633 2,023 1,383 1,395Total expenses 5,442 4,914 3,273 2,627 2,651LESS: OWN-SOURCE INCOMEOwn-source revenueOtherTotal own-source revenue - - - - -GainsOtherTotal gains - - - - -Total own-source income - - - - -Net cost of (contribution by)


the Australian Government - - - - -OTHER COMPREHENSIVE INCOMEChanges in asset revaluation surplusTotal other comprehensive income - - - - -Total comprehensive income (loss) - - - - -Total comprehensive income (loss)

attributable to the Australian Government - - - - -


Table 3.2.2: Budgeted Departmental Balance Sheet(as at 30 June)

83


2013-14 2014-15 2015-16 2016-17 2017-18$'000 $'000 $'000 $'000 $'000


Trade and other receivables 44 66 89 108 128Total financial assets 44 66 89 108 128 Non-financial assets

Property, plant and equipment 183 183 183 242 302Total non-financial assets 183 183 183 242 302

Assets held for saleTotal assets 227 249 272 350 430 LIABILITIESPayables

Other payablesTotal payables - - - - - Interest bearing liabilities

Other interest bearing liabilitiesTotal interest bearing liabilities - - - - - Provisions

Employee provisions 44 66 89 108 128Total provisions 44 66 89 108 128

Liabilities included in disposalgroups held for sale

Total liabilities 44 66 89 108 128 Net assets 183 183 183 242 302


Table 3.2.2: Budgeted Departmental Balance Sheet(as at 30 June) (continued)





84


2013-14 2014-15 2015-16 2016-17 2017-18$'000 $'000 $'000 $'000 $'000


Contributed equity 183 183 183 242 302Reserves - - - - -Retained surplus

(accumulated def icit) - - - - -Total parent entity interest 183 183 183 242 302Total Equity 183 183 183 242 302


reserve capital$'000 $'000 $'000 $'000 $'000


previous period - - - 183 183Adjustment for changes in

accounting policies - - - - -Adjusted opening balance - - - 183 183Estimated closing balance

as at 30 June 2015 - - - 183 183Less: non-controlling interests - - - - -

Closing balance attributable to the Australian Government - - - 183 183


Table 3.2.4: Budgeted Departmental Statement of Cash Flows(for the period ended 30 June)

85


2013-14 2014-15 2015-16 2016-17 2017-18$'000 $'000 $'000 $'000 $'000


Appropriations 5,398 4,892 3,250 2,608 2,631Total cash received 5,398 4,892 3,250 2,608 2,631Cash used



operating activities - - - - -INVESTING ACTIVITIESCash received

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

Purchase of property, plant and equipment 183 - - 59 60

Total cash used 183 - - 59 60Net cash from (used by)

investing activities (183) - - (59) (60)


Table 3.2.4: Budgeted Departmental Statement of Cash Flows(for the period ended 30 June) (continued)


86


2013-14 2014-15 2015-16 2016-17 2017-18$'000 $'000 $'000 $'000 $'000


Contributed equity 183 - - 59 60Total cash received 183 - - 59 60Cash used

Repayments of borrow ings - - - - -Total cash used - - - - -Net cash from (used by)

financing activities 183 - - 59 60Net increase (decrease)


beginning of the reporting period - - - - -Cash and cash equivalents at the

end of the reporting period - - - - -



1 Includes both current Bill 2 and prior Act 2/4/6 appropriations and special capital appropriations


87


2013-14 2014-15 2015-16 2016-17 2017-18$'000 $'000 $'000 $'000 $'000

NEW CAPITAL APPROPRIATIONSCapital budget - Bill 1 (DCB) - - - 59 60Equity injections - Bill 2 183 - - - -

Total new capital appropriations 183 - - 59 60Provided for:

Purchase of non-f inancial assets 183 - - 59 60Total Items 183 - - 59 60

PURCHASE OF NON-FINANCIALASSETSFunded by capital appropriations 1 183 - - 59 60

TOTAL 183 - - 59 60RECONCILIATION OF CASH


Total purchases 183 - - 59 60Total cash used to

acquire assets 183 - - 59 60




Table 3.2.7: Schedule of Budgeted Income and Expenses Administered on Behalf of Government (for the period ended 30 June)ASEA has no income and expenses administered on behalf of government. For this reason Table 3.2.7 is not presented.Table 3.2.8 Schedule of budgeted assets and liabilities administered on behalf of Government (as at 30 June)ASEA has no administered assets and liabilities. For this reason Table 3.2.8 is not presented.Table 3.2.9: Schedule of Budgeted Administered Cash Flows (for the period ended 30 June)ASEA has no administered cash flows. For this reason Table 3.2.9 is not presented.3.2.10 Schedule of Administered Capital BudgetASEA has no administered capital purchases. For this reason Table 3.2.10 is not presented.3.2.11 Schedule of Asset Movements—Administered ASEA has no administered non-financial assets. For this reason Table 3.2.11 is not presented.

88

Other property, Totalplant and

equipment$'000 $'000

As at 1 J uly 2014Gross book value 183 183Accumulated depreciation/amortisation

and impairment - -Opening net book balance 183 183As at 30 J une 2015Gross book value 183 183Accumulated depreciation/amortisation

and impairment - -Closing net book balance 183 183

Comcare, the Safety, Rehabilitation and

Compensation Commission, and the

Seafarers Safety, Rehabilitation and

Compensation Authority


COMCARE, THE SAFETY, REHABILITATION AND COMPENSATION COMMISSION, AND THESEAFARERS SAFETY, REHABILITATION AND

COMPENSATION AUTHORITY

Section 1: Agency Overview and Resources 951.1 Strategic Direction Statement 951.2 Agency Resource Statement 971.3 Budget Measures 98Section 2: Outcomes and Planned Performance 992.1 Outcomes and Performance Information 99Section 3: Explanatory Tables and Budgeted Financial Statements 1123.1 Explanatory Tables 1123.2 Budgeted Financial Statements 114

93

Comcare Budget Statements 2014–15

COMCARE

Section 1: Agency overview and resources


Comcare partners with workers, their employers and employee organisations to keep workers healthy and safe, and reduce the incidence and cost of workplace injury and disease. Comcare is also responsible for managing Commonwealth common law liabilities for asbestos compensation.Comcare aims to deliver better services to the Australian community, guided by Comcare’s Strategic Plan 2010–2015 (2015 Plan). Comcare’s 2015 Plan builds on three fundamental themes: Innovation—new services and support for workers and their

employers Collaboration—new initiatives partnering with stakeholders,

business and governments Impact—improved, efficient business practices, capacity and

capability to deliver efficient and effective services.Comcare is responsible for the following outcomes: The protection of the health, safety and welfare at work of workers

covered by the Comcare scheme through education, assurance and enforcement.

An early and safe return to work and access to compensation for injured workers covered by the Comcare scheme through working in partnership with employers to create best practice in rehabilitation and timely and accurate management of workers’ compensation claims.

Access to compensation for people with asbestos-related diseases where the Commonwealth has a liability through management of claims.

In addition to its regulatory and claims management functions, Comcare provides secretariat and related functions to support the Safety, Rehabilitation and Compensation Commission (SRCC) and the Seafarers Safety, Rehabilitation and Compensation Authority (Seacare Authority).In 2014–15, Comcare will finalise delivery of its 2015 Strategic Plan and work to ensure Comcare is a responsive and effective regulator into the future. Comcare’s priorities in 2014–15 include:

95


streamlining the entrance of new self-insurers to the Comcare scheme

promoting mental health and wellbeing at work, preventing psychological harm and promoting the health benefits of work

effectively targeting known and emerging work health and safety risks

promoting the ability to work and reducing unnecessary incapacity from workplace harm

tackling the drivers of increased claims liabilities to strengthen our balance sheet

being an exemplary workplace to attract, retain and inspire people who are passionate about their work

working with the Department of Employment and the Australian Public Service Commission to respond to government priorities.

Comcare will be seeking approval to revise its budget outcomes in Comcare’s 2015–16 Budget Statements to better reflect its business model (that separates its insurance and claim management activity from its scheme management and regulatory activity).

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Table 1.1 shows the total resources from all sources. The table summarises how resources will be applied by outcome and by administered and departmental classification.Table 1.1: Comcare Resource Statement

Budget Estimates for 2014–15 as at Budget May 2014

1 Appropriation Bill (No.1) 2014-152 Grants from Portfolio Departments includes special appropriations under the Safety, Rehabilitation and Compensation Act 1988 for the payment of pre-premium claims costs and the Asbestos-related Claims (Management of Commonwealth Liabilities) Act 2005 for asbestos-related claims settlements.

All figures are GST exclusive

Comcare is not directly appropriated as it is a CAC Act body. Appropriations are made to the Department of Employment which are then paid to Comcare and are considered 'departmental' for all purposes.

97



2014-15 2014-15 2014-15 2013-14Source $'000 $'000 $'000 $'000Opening balance/Reserves at bank 397,646 - 397,646 289,830 REVENUE FROM GOVERNMENTOrdinary annual services¹

Outcome 1 - 2,189 2,189 2,215 Outcome 2 - 414 414 424 Outcome 3 - 4,960 4,960 5,085 Total ordinary annual services - 7,563 7,563 7,724

Total funds from Government - 7,563 7,563 7,724 FUNDS FROM INDUSTRY SOURCES

Licence fees - 14,793 14,793 14,757 Total - 14,793 14,793 14,757

FUNDS FROM OTHER SOURCESInterest - 25,589 25,589 18,964 Sale of goods and services - 2,085 2,085 2,388 Regulatory Contributions - 20,012 20,012 20,100 Grants from Portfolio Department2 - 65,859 65,859 56,827 Workers' Compensation Premiums - 487,100 487,100 407,271 Total - 600,645 600,645 505,550

Total net resourcing for Comcare - 623,001 623,001 528,031


1.3 BUDGET MEASURESBudget measures in Part 1 relating to Comcare are detailed in Budget Paper No. 2 and summarised below. Table 1.2 Agency 2014–15 Budget MeasuresPart 1: Measures announced since the 2013–14 MYEFO

Prepared on a Government Finance Statistics (fiscal) basis

98

Programme 2013-14 2014-15 2015-16 2016-17 2017-18$'000 $'000 $'000 $'000 $'000


Departmental expenses - (20) (38) (47) (47)Total - (20) (38) (47) (47)Total expense measures

Departmental - (20) (38) (47) (47)Total - (20) (38) (47) (47)




Government outcomes are the intended results, impacts or consequences of actions by the government on the Australian community. Commonwealth programmes are the primary vehicle by which government agencies achieve the intended results of their outcome statements. Agencies are required to identify the programmes which contribute to government outcomes over the Budget and forward years.Each outcome is described below together with its related programmes, specifying the performance indicators and targets used to assess and monitor the performance of Comcare in achieving government outcomes.

Outcome 1: The protection of the health, safety and welfare at work of workers covered by the Comcare scheme through education, assurance and enforcement.

Outcome 1 StrategyComcare will achieve this outcome through: promoting worker health, wellbeing and resilience promoting the positive links between work and health focusing on preventing harm in the workplace, keeping workers

healthy and safe at work, and reducing the number and severity of safety incidents

education and assurance services that will focus on employers not providing a healthy and safe work environment

responding to health and safety incidents in a timely way and ensuring appropriate justice in response to death, serious injury or dangerous occurrences

enforcing compliance with the Commonwealth work health and safety laws

continuing to work with other regulators to ensure there are no work health and safety gaps and remove duplication of coverage by regulators.

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Outcome 1 Expense StatementTable 2.1.1 provides an overview of the total expenses for Outcome 1, by programme.Table 2.1.1 Budgeted Expenses for Outcome 1

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Outcome 1: The protection of the health, safety and 2013-14 2014-15welfare at w ork of workers covered by the Comcare Estimated Estimatedscheme through education, assurance and enforcement actual expenses

expenses$'000 $'000

Programme 1: Comcare Departmental Outcome 1Revenue from Government

Ordinary annual services (Appropriation Bill No. 1) 2,215 2,189Revenues from industry sources 8,715 8,440Revenues from other independent sources 13,566 15,309

Total for Programme 1 24,496 25,938Outcome 1 Totals by resource typeRevenue from Government

Ordinary annual services (Appropriation Bill No. 1) 2,215 2,189Revenues from industry sources 8,715 8,440Revenues from other independent sources 13,566 15,309Total expenses for Outcome 1 24,496 25,938




Programme 1 Comcare

Programme objectiveThe objectives for this programme are: promoting worker health, wellbeing and resilience preventing harm in workplaces covered by the Comcare scheme stronger enforcement and justice outcomes compliance with federal work health and safety laws.Programme 1: expenses Comcare is maintaining resourcing to match the government’s

expectations about the level of regulatory intervention and the need to continue the positive trend in injury prevention.

Table 2.1.1 Programme 1 expenses

Programme 1 deliverables The programme deliverables for this outcome are: implement improved work design principles to reduce workplace

risks related to mental health and wellbeing support health and safety representatives to improve the impact of

work health and safety outcomes priority risks and workplace harms are identified and reduced

through work health and safety campaigns stronger regulation of workplace hazards that may impact mental

health and wellbeing scheme employers and front-line managers have increased

capability to implement work health and safety systems and standards to prevent harm in workplaces covered by the Comcare scheme

work health and safety duties and obligations are well understood and applied

investigative, inspectorate and audit services respond to health and safety incidents in a timely way and ensure appropriate health,

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actual estimate estimate estimate('000) $'000 $'000 $'000 $'000 $'000Annual departmental expenses:

Annual Appropriation 2,215 2,189 2,170 749 756Expenses not requiring appropriation in

the Budget year 22,281 23,749 24,295 24,639 25,018Total Programme expenses 24,496 25,938 26,465 25,388 25,774


safety and/or justice outcomes in response to death, serious injury or dangerous incidents

to contribute to the delivery of the Australian Work Health and Safety Strategy 2012–2022

Programme 1 key performance indicatorsThe key performance indicators for this outcome are: satisfaction of workers, health and safety representatives and

employers with Comcare’s work health and safety support and guidance and the impact of Comcare’s regulatory interventions

the success of prosecutions for breaches of the Work Health and Safety Act 2011.

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Outcome 2: An early and safe return to work and access to compensation for injured workers covered by the Comcare scheme through working in partnership with employers to create best practice in rehabilitation and quick and accurate management of workers’ compensation claims.

Outcome 2 Strategy Comcare will achieve the outcome through: supporting workers with injuries to return to work and return to

independence as quickly as possible working with employers and employees to prevent workplace injury

and disease supporting employers to build culture and systems that improve

earlier recovery and return to work developing a better understanding of the experience and

expectations of injured workers delivering services that are informed by the community Comcare

serves improving the quality, consistency and timeliness of claims

decisions through better use of information, tools and expertise delivering improved claims management efficiency by improving

business processes and systems adopting premium strategies that reward and improve scheme

performance ensuring cost recovery and premium models are robust and

contemporary to be cost effective, accountable and ensure value for money

strong balance sheet management to improve financial performance and preserve financial integrity

supporting the SRCC to effectively regulate Comcare licensed self-insurers

working with the Department of Employment to implement legislative changes to the Safety, Rehabilitation and Compensation Act 1988 (SRC Act).

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1 This relates to non-cash movements in workers' compensation claims liabilities

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Outcome 2: An early and safe return to w ork and accessto compensation for injured workers covered by theComcare scheme through working in partnership with 2013-14 2014-15employees to create best practice in rehabilitation and Estimated Estimatedquick and accurate management of workers' actual expensescompensation claims expenses

$'000 $'000Programme 2: Comcare Departmental Outcome 2Revenue from Government

Ordinary annual services (Appropriation Bill No. 1) 424 414Grants received from portfolio department 40,980 39,503Revenues from industry sources 6,042 6,353Revenues from other independent sources 390,185 421,004Revenues from other independent sources1 (1,132) 2,756


Ordinary annual services (Appropriation Bill No. 1) 424 414Grants received from portfolio department 40,980 39,503Revenues from industry sources 6,042 6,353Revenues from other independent sources 390,185 421,004Revenues from other independent sources1 (1,132) 2,756Total expenses for Outcome 2 436,499 470,030




Programme 2 Comcare

Programme objectiveThe objectives of this outcome are: timely, responsive and appropriate management of workers’

compensation claims recovery and support information and services for workers with an

injury which support their return to health, return to work and return to independence

continuous improvement in injury management practices and return to work performance

decision-making leading to fair and equitable compensation management of claims liabilities within an appropriate framework the SRCC is supported and enabled by Comcare to effectively

deliver its statutory functions the Seacare Authority is supported and enabled by Comcare to

effectively deliver its statutory functions Comcare scheme employers and determining authorities have

effective claims and injury management systems in place ensure that licensed self-insurers comply with their conditions of

licence and meet continuous improvement targets.Programme 2 expenses The Special Appropriation under s90D of the SRC Act (Grants

received from Portfolio Departments) relates to workers’ compensation claims that were accepted prior to the establishment of the Comcare premium scheme on 1 July 1989. The costs of these claims are funded from the Consolidated Revenue Fund.

Expenses for claims accepted since 1 July 1989 are funded from premium revenue paid to Comcare and do not require appropriation.


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actual estimate estimate estimate$'000 $'000 $'000 $'000 $'000

Annual departmental expenses:Annual Appropriation 424 414 408 405 409

Grants received from portfolio department 40,980 39,503 38,282 36,449 34,885 Expenses not requiring appropriation in

the Budget year 396,227 427,357 448,899 477,170 506,045 Expenses not requiring appropriation in

the Budget year 1 (1,132) 2,756 6,935 11,418 15,015 Total Programme expenses 436,499 470,030 494,524 525,442 556,354



Programme 2: components Component 2.1—SRC Act Regulation Component 2.2—Management of Premium Claims Component 2.3—Management of Pre-Premium Claims Component 2.4—Provide support to the Seafarers Safety,

Rehabilitation and Compensation AuthorityTable 2.1.2A Programme 2 components

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2.1 - SRC Act RegulationExpenses not requiring Appropriation inthe Budget year 13,540 13,977 14,087 14,303 14,526

Total component expenses 13,540 13,977 14,087 14,303 14,5262.2 - Management of Premium ClaimsExpenses not requiring Appropriation inthe Budget year 417,154 449,749 472,076 501,077 530,701

Total component expenses 417,154 449,749 472,076 501,077 530,7012.3 - Management of Pre-PremiumClaimsGrants received from portfoliodepartment 40,980 39,503 38,282 36,449 34,885 Expenses not requiring Appropriation inthe Budget year (36,607) (34,213) (30,972) (27,454) (24,843)

Total component expenses 4,373 5,290 7,310 8,995 10,0422.4 - Provide support to the Seafarers'Safety Rehabilitation and CompensationAuthorityAnnual departmental expenses:

Annual Appropriation 424 414 408 405 409 Expenses not requiring Appropriation inthe Budget year 1,008 600 643 662 676

Total component expenses 1,432 1,014 1,051 1,067 1,085



Programme 2 deliverablesThe programme deliverables for this outcome are: compensation decisions are consistent, prompt and fair disputes are resolved quickly, fairly and at a low cost expectations of employers’ roles and responsibilities as

rehabilitation authorities are clear and are supported by targeted audits and regulatory activity

Comcare operates efficiently to deliver value for money.Programme 2 key performance indicators The performance indicators for this outcome are described in the table below.Table 2.1.2B Programme 2 key performance indicators

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2013-14 2014-15 2015-16 2016-17 2017-18Key Performance Estimated Budget Forw ard Forw ard Forw ard

Indicators actual estimate estimate estimateDurable return to w ork rate(i.e. the percentage of injuredw orkers from premium paying organisations w ith ten or more days lost time, w ho had submitteda claim 7-9 months prior to interview ,and w ho w ere w orking in a paid job at the time of the interview ) 89% 90% 90% 90% 90%Funding ratio(i.e. the percentage of premium-related total assets to premium-related total liabilities) 67% 71% 75% 79% 84%Percentage of licesees compliantw ith licencing obligations 100% 100% 100% 100% 100%Commonw ealth average premiumrate 1.82 2.12 2.12 2.12 2.12Employer satisfaction w ithrecovery and support services 57% 61% 65% 65% 65%Injured w orker satisfaction w ithrecovery and support services 79% 81% 83% 83% 83%


Outcome 3 Access to compensation for people with asbestos-related diseases where the Commonwealth has a liability through management of claims.

Outcome 3 Strategy Comcare will achieve this outcome by: paying appropriate compensation to victims of asbestos-related

diseases in a timely manner managing the Commonwealth’s asbestos-related disease liabilities

at common law in accordance with relevant laws and Australian Government policies

supporting practical programmes and research which improve treatment and support for asbestos-related disease sufferers and their carers

collaborating with stakeholders to define a better approach to the management of common law asbestos-related claims

recovering contributions to compensation payments from liable third parties.


1 This relates to non-cash movements in asbestos-related disease claims liabilities

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Outcome 3: Access to compensation for people w ith 2013-14 2014-15asbestos-related diseases where the Commonwealth Estimated Estimatedhas a liability through management of claims actual expenses

expenses$'000 $'000

Programme 3: Comcare Departmental Outcome 3Revenue from Government

Ordinary annual services (Appropriation Bill No. 1) 5,085 4,960Grants received from portfolio department 15,847 26,356Revenues from other independent sources 1,438 1,696Revenues from other independent sources1 14,840 (840)


Ordinary annual services (Appropriation Bill No. 1) 5,085 4,960Grants received from portfolio department 15,847 26,356Revenues from other independent sources 1,438 1,696Revenues from other independent sources1 14,840 (840)Total expenses for Outcome 3 37,210 32,172




Programme 3 Comcare

Programme objective The objectives of this outcome are to: achieve resolution of asbestos related claims in a responsive,

timely and appropriate manner manage asbestos related compensation liabilities within an

appropriate prudential framework.Programme 3 expensesClaims administration and claims settlements costs are expected to remain relatively stable in the budget and forward years. The movement (non-cash) in outstanding claims liabilities is expected to reduce over the forward estimates.Table 2.1.3A Programme 3 expenses


Programme 3 deliverables The programme deliverables for this outcome are: asbestos-related claims are managed consistently and in

accordance with relevant legislation and Australian Government policies

accurate data and other information about asbestos-related liabilities is provided to ensure sound valuation of liabilities

recoveries are received from liable third parties Comcare’s operating and legal expenses deliver value for money.

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Annual departmental expenses:Annual Appropriation 5,085 4,960 4,929 4,898 4,946

Grants received from portfolio department 15,847 26,356 30,031 31,586 32,543 Expenses not requiring appropriation in

the Budget year 1,438 1,696 1,757 1,901 1,970 Expenses not requiring appropriation in

the Budget year 1 14,840 (840) (6,720) (9,380) (11,340)Total Programme expenses 37,210 32,172 29,997 29,005 28,119


Programme 3 key performance indicators The performance indicators for this outcome are: the extent to which Comcare complies with the Commonwealth

Legal Service Directions, the management objectives contained in the Asbestos Litigation Policy Statement and any Court/Tribunal Rules/Orders in respect of all asbestos-related disease claims

other performance measures are described in the table below.Table 2.1.3B Programme 3 key performance indicators

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2013-14 2014-15 2015-16 2016-17 2017-18Key Performance Estimated Budget Forw ard Forw ard Forw ard

Indicators actual estimate estimate estimateThe percentage of primaryasbestos claims settled by Comcarew ithin 180 calendar days 65% 65% 65% 65% 65%Percentage of the value of asbestosclaims settlements recovered fromthird parties 5% 5% 5% 5% 5%


Section 3: Explanatory tables and budgeted financial statementsSection 3 presents explanatory tables and budgeted financial statements which provide a comprehensive snapshot of Comcare’s finances for the 2014–15 budget year. It explains how budget plans are incorporated into the financial statements and provides further details of the reconciliation between appropriations and programme expenses, movements in administered funds, special accounts and Australian Government Indigenous expenditure.


3.1.1 Movement of administered funds between yearsComcare has no movement of administered funds to report. For this reason Table 3.1.1 is not presented.3.1.2 Special AccountsSpecial accounts provide a means to set aside and record amounts used for specified purposes. Special Accounts can be created by a Finance Minister’s Determination under the FMA Act or under separate enabling legislation. Table 3.1.2 shows the expected additions (receipts) and reductions (payments) for the special account for which the Seafarers Safety, Rehabilitation and Compensation Authority is responsible.Table 3.1.2: Estimates of Special Account Flows and Balances

(A) = Administered

The Special Account was established for the purpose of providing a safety net under section 96 of the Seafarers Rehabilitation and Compensation Act 1992 for the compensation and rehabilitation of injured seafarers not otherwise covered by an employer.

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Opening Closingbalance Receipts Payments Adjustments balance2014-15 2014-15 2014-15 2014-15 2014-152013-14 2013-14 2013-14 2013-14 2013-14

Outcome $'000 $'000 $'000 $'000 $'000Seafarers Rehabilitation andCompensation Accounts20 FMA Act (A) 1,322 132 132 - 1,322

1,322 132 132 - 1,322Total Special Accounts

2014-15 Budget estimate 2 1,322 132 132 - 1,322Total Special Accounts

2013-14 estimated actual 2 1,322 132 132 - 1,322


Transactions against this special account reflect: levy collections from maritime operators expenses incurred in the administration of the Seafarers Safety Net

Fund and claim payments (if any).3.1.3 Australian Government Indigenous ExpenditureComcare has no Australian Government Indigenous Expenditure to report. For this reason Table 3.1.3 is not presented.

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3.2.1 Differences in agency resourcing and financial statementsThe difference between the available resources shown in Table 1.1: Comcare resource statement and Table 3.2.1: Comprehensive Income Statement is due to prior year amounts available in 2014–15. The prior year amounts relate to retained premium funds, which are held to discharge future premium claims liabilities. Table 3.2.2: Budgeted Departmental Balance Sheet also includes significant financial assets (appropriations receivable) which will fund claim payments over the lifetime of the outstanding claims. 3.2.2 Analysis of budgeted financial statementsIncomeComcare’s total income in 2014–15 is budgeted at $624.9 million, compared to $541.7 million in 2013–14 (i.e. an increase of $83.2 million).Revenue from independent sources, which excludes annual appropriations and other cash and non-cash appropriations received from the portfolio department, is budgeted at $549.6 million (refer to table below).Revenue from independent sources

Estimated Budgetactual estimate

2013-14 2014-15$'000 $'000

Workers' compensation premium 407,271 487,100Licence fees 14,757 14,793Regulatory contributions 20,100 20,012Interest 18,964 25,589Sales of goods and rendering of services 2,388 2,085Total 463,480 549,579

The increase in income is mainly due to an increase in workers’ compensation premiums which increased by $79.8 million (i.e. from $407.3 million to $487.1 million). Continuing from the premium strategy for 2013–14, premiums for 2014–15 will include a recovery margin. This is one of several Comcare strategies designed to restore the premium scheme to a fully funded position over the medium term. Licence fees and regulatory contributions collected by Comcare in 2014–15 are budgeted to remain at the same level as in 2013–14 (i.e. zero per cent growth). Comcare has committed to finding efficiencies

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that will enable it to provide the same standard of regulatory activities without increasing the regulatory charges on industry.

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ExpensesComcare’s total expenses in 2014–15 are budgeted at $528.1 million, compared to $498.2 million in 2012–13 (i.e. an increase of $29.9 million).Comcare’s administration expenses are budgeted to reduce in 2014–15 by $5.0 million (i.e. from $117.0 million to $112.0 million) due to the conclusion of major strategic programmes undertaken in 2013–14. These programmes delivered specific liability management outcomes and general efficiency gains in Comcare’s operations. In 2014–15 Comcare will continue to invest in efforts to improve liability management and administrative efficiency. Claims expenses are budgeted to increase by $34.9 million based on projections provided by independent actuarial assessment. Claims payments are estimated to increase by $32.5 million and Comcare’s claims liabilities are expected to increase by $2.4 million.Operating ResultComcare’s operating result in 2014–15 is budgeted to increase significantly, mainly due to an expectation that claims liabilities will stabilise as the benefits of the strategic programmes in the last two financial years start to flow through. The budgeted surpluses in 2014–15 and forward years will contribute to restoring the premium scheme’s financial health. There has been no significant change in Comcare’s 2013–14 estimated operating result since the last published estimate at 2013–14 Additional Estimates. However, it is important to note that the final operating result is highly dependent on movements in claims liabilities which will be determined by the independent actuaries as at 30 June 2014.Claims LiabilityComcare has three separate claims liabilities: Premium workers’ compensation claims – these relate to workers’

compensation claims from premium paying agencies with a date of injury on or after 1 July 1989.

Pre-premium workers’ compensation claims – these relate to workers’ compensation claims with a date of injury before 1 July 1989. It is expected that pre-premium claims liabilities will decrease over time as claims are settled.

Asbestos-related common law liabilities – these relate to asbestos related claims where the Commonwealth has a liability.

In the 2014–15 Portfolio Budget Statements, all claims liability provisions are based on independent actuarial valuations on the basis of the central estimate plus the risk margin that would achieve a 75 per cent probability of sufficiency.

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This represents a change from last year as 2013–14 Portfolio Budget Statement estimated claims liabilities on the basis of the central estimate (i.e. a 50 per cent probability of sufficiency). This change in accounting policy was introduced by Comcare in its 2012-13 financial results to align Comcare’s financial reporting with industry practice and prudential management practices. Estimates for gross claims liabilities as at 30 June each year are as follows:Gross claims liabilities

2013-14 2014-15 2015-16 2016-17 2017-18$'000 $'000 $'000 $'000 $'000

Workers' compensation liabilitiesPremium 2,757,100 2,875,285 2,997,551 3,130,665 3,275,305Pre-Premium 393,000 358,774 327,788 300,321 275,465

Asbestos related - common law 1,004,080 1,002,960 995,540 985,320 972,860

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3.2.3 Budgeted financial statements tables

Table 3.2.1 Comprehensive Income Statement (Showing Net Cost of Services)

for the period ended 30 June


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2013-14 2014-15 2015-16 2016-17 2017-18$'000 $'000 $'000 $'000 $'000

EXPENSESEmployee benefits 76,170 73,225 72,690 72,311 73,404Suppliers 33,229 31,856 31,816 32,422 33,066Depreciation and amortisation 7,606 6,940 7,607 7,607 7,607Claims Payments 301,375 333,888 353,973 371,115 387,839Claims - Movement in liabilities 79,825 82,231 84,900 96,380 108,331Total expenses 498,205 528,140 550,986 579,835 610,247LESS: OWN-SOURCE INCOMEOwn-source revenueSale of goods and rendering of services 2,388 2,085 2,123 2,162 2,205Licence fees 14,757 14,793 13,965 14,168 14,385Regulatory contributions 20,100 20,012 22,135 22,451 22,795Interest 18,964 25,589 31,012 37,108 43,476Grants received from portfolio

department 56,827 65,859 68,313 68,035 67,428Workers' compensation premium 407,271 487,100 490,400 511,400 532,500Other non-tax revenue 13,708 1,916 215 2,038 3,675Total own-source revenue 534,015 617,354 628,163 657,362 686,464Net cost of (contribution by)

services (35,810) (89,214) (77,177) (77,527) (76,217)Revenue from Government 7,724 7,563 7,507 6,052 6,111Surplus (Deficit) attributable to

the Australian Government 43,534 96,777 84,684 83,579 82,328




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2013-14 2014-15 2015-16 2016-17 2017-18$'000 $'000 $'000 $'000 $'000


Cash and cash equivalents 397,644 572,430 740,148 915,665 1,100,266Trade and other receivables 2,864,775 2,865,495 2,862,795 2,863,880 2,866,548Other financial assets 5,742 5,742 5,742 5,742 5,742

Total financial assets 3,268,161 3,443,667 3,608,685 3,785,287 3,972,556 Non-financial assets

Property, plant and equipment 28,292 32,420 37,205 39,640 42,075Intangibles 4,763 4,445 2,803 4,261 5,719Other non-financial assets 1,319 1,319 1,319 1,319 1,319

Total non-financial assets 34,374 38,184 41,327 45,220 49,113 Total assets 3,302,535 3,481,851 3,650,012 3,830,507 4,021,669 LIABILITIESPayables



Employee provisions 16,910 16,611 16,227 17,716 19,226Other provisions 4,156,053 4,238,891 4,322,752 4,418,179 4,525,503

Total provisions 4,172,963 4,255,502 4,338,979 4,435,895 4,544,729 Total liabilities 4,187,625 4,270,164 4,353,641 4,450,557 4,559,391 Net assets (885,090) (788,313) (703,629) (620,050) (537,722) EQUITYParent entity interest

Contributed equity 7,717 7,717 7,717 7,717 7,717Reserves 219 219 219 219 219Retained surplus

(accumulated deficit) (893,026) (796,249) (711,565) (627,986) (545,658)Total parent entity interest (885,090) (788,313) (703,629) (620,050) (537,722)Total Equity (885,090) (788,313) (703,629) (620,050) (537,722)


Table 3.2.3: Departmental Statement of Changes in Equity—summary of movement (Budget Year 2014–15)


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reserve capital$'000 $'000 $'000 $'000 $'000


previous period (893,026) 219 - 7,717 (885,090)Adjustment for changes in

accounting policies - - - - -Adjusted opening balance (893,026) 219 - 7,717 (885,090)Comprehensive income

Surplus (deficit) for the period 96,777 - - - 96,777Total comprehensive income 96,777 - - - 96,777Estimated closing balance

as at 30 June 2015 (796,249) 219 - 7,717 (788,313)Closing balance attributable to the

Australian Government (796,249) 219 - 7,717 (788,313)




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2013-14 2014-15 2015-16 2016-17 2017-18$'000 $'000 $'000 $'000 $'000


Appropriations 7,724 7,563 7,507 6,052 6,111Sale of goods and rendering of

services 37,246 36,890 38,223 38,780 39,386Interest 18,964 25,589 31,011 37,108 43,476Grants received from portfolio

department 56,827 65,859 68,313 68,035 67,428Other 451,322 538,997 542,624 565,786 589,060


Employees 75,598 71,717 71,197 70,824 71,899Suppliers 33,232 31,859 31,818 32,420 33,065Net GST paid 44,051 51,897 52,224 54,386 56,560Other 301,375 333,888 353,973 371,115 387,839


operating activities 117,827 185,537 178,466 187,016 196,098INVESTING ACTIVITIESCash used



investing activities (10,011) (10,750) (10,750) (11,500) (11,500)Net increase (decrease)

in cash held 107,816 174,787 167,716 175,516 184,598Cash and cash equivalents at the

beginning of the reporting period 289,830 397,646 572,433 740,149 915,665Cash and cash equivalents at the

end of the reporting period 397,646 572,433 740,149 915,665 1,100,263


Table 3.2.5 Departmental Capital Budget Statement




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2013-14 2014-15 2015-16 2016-17 2017-18$'000 $'000 $'000 $'000 $'000

PURCHASE OF NON-FINANCIALASSETSFunded internally from

departmental resources 10,011 10,750 10,750 11,500 11,500TOTAL 10,011 10,750 10,750 11,500 11,500RECONCILIATION OF CASH



acquire assets 10,011 10,750 10,750 11,500 11,500

Other property, Computer Totalplant and softw are and

equipment intangibles$'000 $'000 $'000

As at 1 July 2014Gross book value 41,973 16,302 58,275Accumulated depreciation/amortisation

and impairment (13,681) (11,539) (25,220)Opening net book balance 28,292 4,763 33,055CAPITAL ASSET ADDITIONSEstimated expenditure on

new or replacement assetsBy purchase or internally developed 10,750 - 10,750Total additions 10,750 - 10,750Other movementsDepreciation/amortisation expense (6,622) (318) (6,940)Total other movements (6,622) (318) (6,940)As at 30 June 2015Gross book value 52,723 16,302 69,025Accumulated depreciation/amortisation

and impairment (20,303) (11,857) (32,160)Closing net book balance 32,420 4,445 36,865


Table 3.2.7: Schedule of Budgeted Income and Expenses Administered on Behalf of Government (for the period ended 30 June)


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2013-14 2014-15 2015-16 2016-17 2017-18$'000 $'000 $'000 $'000 $'000

EXPENSES ADMINISTERED ONBEHALF OF GOVERNMENTSuppliers 132 132 132 132 132

Total expenses administeredon behalf of Government 132 132 132 132 132

LESS:OWN-SOURCE INCOMEOw n-source revenueTaxation revenue

Other revenue 132 132 132 132 132Total own-sourced income

administered on behalf ofGovernment 132 132 132 132 132

Net Cost of (contribution by)services - - - - -

Surplus (Deficit) - - - - -Total comprehensive income (loss) - - - - -


Table 3.2.8: Schedule of Budgeted Assets and Liabilities Administered on Behalf of Government (as at 30 June)


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2013-14 2014-15 2015-16 2016-17 2017-18$'000 $'000 $'000 $'000 $'000


Cash and cash equivalents - - - - -Taxation receivables 9 9 9 9 9Trade and other receivables 1,322 1,322 1,322 1,322 1,322

Total financial assets 1,331 1,331 1,331 1,331 1,331Total assets administered

on behalf of Government 1,331 1,331 1,331 1,331 1,331LIABILITIESPayables

Prepayments - - - - -Other payables 111 111 111 111 111

Total payables 111 111 111 111 111Total liabilities administered

on behalf of Government 111 111 111 111 111Net assets/(liabilities) 1,220 1,220 1,220 1,220 1,220


Table 3.2.9: Schedule of Budgeted Administered Cash Flows (for the period ended 30 June)


3.2.10 Schedule of Administered Capital BudgetComcare has no administered capital purchases. For this reason Table 3.2.10 is not presented.3.2.11 Schedule of Asset Movements—Administered Comcare has no administered non-financial assets. For this reason Table 3.2.11 is not presented.

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2013-14 2014-15 2015-16 2016-17 2017-18$'000 $'000 $'000 $'000 $'000


Other 132 132 132 132 132Total cash received 132 132 132 132 132Cash used

Other 132 132 132 132 132Total cash used 132 132 132 132 132Net cash from (used by)

operating activities - - - - -Net increase (decrease) in

cash held - - - - -Cash and cash equivalents at

beginning of reporting period - - - - -Cash from Official Public Account for:

- Special Accounts 132 132 132 132 132132 132 132 132 132

Cash to Off icial Public Account for:- Special Accounts 132 132 132 132 132

132 132 132 132 132Cash and cash equivalents at endof reporting period - - - - -


3.2.4 Notes to the Financial StatementsAccounting policyThe budgeted financial statements have been prepared in accordance with the requirements of the Finance Minister’s Orders issued by the Minister for Finance. The statements have been prepared: on an accrual accounting basis in compliance with Australian Accounting Standards and Australian

Equivalents to International Financial Reporting Standards (AEIFRS) and other authoritative pronouncements of the Australian Accounting Standards Boards and the Consensus Views of the Urgent Issues Group

having regard to Statements of Accounting Concepts.Agency itemsAgency assets, liabilities, revenues and expenses are those items that are controlled by Comcare.Administered assets, liabilities, revenues and expenses relate to the Seafarers Safety, Rehabilitation and Compensation Authority (Seafarers Authority) which collects levies under the Seafarers Rehabilitation and Compensation Levy Collection Act 1992. The Seafarers Authority is controlled by the Government and managed by Comcare. Comprehensive Income StatementRevenue from governmentComcare receives an annual appropriation for the management of asbestos related claims, the administration of the Seacare Authority and some of Comcare’s regulatory activities.Own source revenueComcare receives the following own-source revenue: workers’ compensation premiums grants received from portfolio department other non-tax revenue licence fees regulatory contributions interest sale of goods and rendering of services.

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Workers’ compensation premiumsThe premium scheme covers employees of Commonwealth Government agencies and the ACT Government covered by the SRC Act for injuries and illnesses sustained on or after 1 July 1989. Premiums are determined to fully fund the expected scheme liabilities as advised by independent actuaries.Premiums do not cover liabilities for injuries or illness sustained prior to 1 July 1989. These liabilities are funded by Parliamentary appropriation and are referred to as ‘pre-premium’ liabilities.Grants received from portfolio department‘Grants received from portfolio department’ represent cash appropriation for the payment of pre-premium claims and administration costs, and asbestos claims costs.Other non-tax revenue‘Other non-tax revenue’ is a non-cash appropriation representing: the notional interest on retained premium funds held with the

Australian Government; and the movement in claims liabilities payable in future years based on

independent actuarial assessment.Administration expensesComcare administration expenses include: employee expenses—includes salaries, superannuation and the net

increase in employee entitlements; suppliers—includes goods and services procured from suppliers; depreciation and amortisation—property, plant and equipment and

intangible assets are depreciated over their useful lives. Leasehold improvements are amortised over the lesser of the estimated useful life of the improvement or the unexpired period of the lease. In all cases, assets are depreciated using the straight line method.

Claims expensesComcare recognises two types of claims expenses:

1. Claims payments—includes workers’ compensation claims payments (premium and pre-premium) and common law settlements for asbestos-related compensation cases.

2. Movement in liabilities—net movements in outstanding workers’ compensation claims liabilities are recognised as expenses.

127


Departmental Balance SheetCash and cash equivalentsCash and cash equivalents include deposits at call and term deposits with a bank or financial institution.Trade and other receivablesOther receivables are the combined value of: pre-premium and asbestos special appropriation receivable premiums collected by Comcare prior to 1 July 2002 held by the

Australian Government plus earned notional interest, in accordance with Section 90C of the SRC Act.

Employee provisionsThe provision for employee entitlements encompasses unpaid annual and long service leave. No provision is made for sick leave. Other provisionsProvision is made for: outstanding workers’ compensation claims liabilities asbestos-related common law liabilities.These estimates have been prepared by independent actuaries. They are based on analysis of the historical development of the relevant claims experience, with allowances for future claim escalation and administration expenses, and are discounted to a present value to allow for the time value of money. The estimates of outstanding liabilities have been based on independent actuarial valuations on the basis of the central estimate plus the risk margin that would achieve a 75 per cent probability of sufficiency.

128

Fair Work Commission


FWC Budget Statements 2014–15

FAIR WORK COMMISSION

Section 1: Agency overview and resources..........................1351.1 Strategic direction statement................................................1351.2 Agency resource statement...................................................1361.3 Budget measures..................................................................137Section 2: Outcomes and planned performance...................1382.1 Outcomes and performance information...............................138Section 3: Explanatory tables and budgeted financial statements........................................................................1433.1 Explanatory tables.................................................................1433.2 Budgeted financial statements..............................................143

133


FAIR WORK COMMISSION



The Fair Work Commission was established by the Fair Work Act 2009 (FW Act). The Commission is the national workplace relations tribunal responsible for administering provisions of the FW Act. The Commission also has responsibilities in relation to the registration, recognition and accountability of unions and employer organisations under the Fair Work (Registered Organisations) Act 2009.The Road Safety Remuneration Act 2012 established the Road Safety Remuneration Tribunal; an independent national tribunal with functions relating to the road transport industry. The Road Safety Remuneration Tribunal is supported by staff of the Fair Work Commission.The Fair Work Commission consists of a President, Vice Presidents, Deputy Presidents, Commissioners and Expert Panel Members. The Fair Work Commission also has a General Manager and administrative staff.The Fair Work Commission has the power to vary awards, make minimum wage orders, approve agreements, resolve workplace and other disputes, determine unfair dismissal claims and make orders in relation to matters such as good faith bargaining and industrial action. The Commission has a Pay Equity Unit to undertake research and data collection to inform matters related to pay equity under the FW Act. The Commission has also commenced dealing with applications for orders to stop or prevent workplace bullying.Over the next two years, the Fair Work Commission will implement initiatives aimed at further improving fairness and access to justice; accountability; innovation and efficiency; and productivity and engagement with industry. The new initiatives are set out in the publication Future Directions II, which is available on the Commission’s website (www.fwc.gov.au).

134



Table 1.1: Fair Work Commission Resource Statement—Budget estimates for 2014–15 as at Budget May 2014

1 Appropriation Bill (No.1) 2014-152 Estimated adjusted balance carried forward from previous year3 Includes an amount for the Departmental Capital Budget (refer to table 3.2.5 forfurther details). For accounting purposes this amount has been designated as 'contributions by owners'.4 s31 Relevant Agency receipts - estimate


135



2014-15 2014-15 2014-15 2013-14$'000 $'000 $'000 $'000


Departmental appropriationPrior year departmental appropriation2

Departmental appropriation3 36,809 82,348 119,157 76,335s31 Relevant agency receipts4 0 1,286 1,286 1,244

36,809 83,634 120,443 77,579Total ordinary annual services A 36,809 83,634 120,443 77,579Administered expensesDepartmental non-operating

Equity injections - - - - Total - - - -

Total other services B - - - - Total available annual

appropriations 36,809 83,634 120,443 77,579Special appropriationsSpecial appropriations limited

by criteria/entitlement - - - -Total special appropriations C - - - -Special Accounts

Special Accounts - - - -Total Special Account D - - - -Total resourcingA+B+C+D 36,809 83,634 120,443 77,579Less appropriations draw n from

annual or special appropriations aboveand credited to special accountsand/or CAC Act bodies through - - - -annual appropriations - - - -

Total net resourcing for Fair Work Commission 36,809 83,634 120,443 77,579


1.3 BUDGET MEASURES

Table 1.2 Agency 2014–15 Budget measuresPart 1: Measures announced since the 2013–14 MYEFO

Part 2: MYEFO measures not previously reported in a portfolio statement

1 This is a measure announced in the 2013-14 Budget but not previously reported in a portfolio statement.2 This was a measure announced in the 2013 Economic Statement measure but not previously reported in a portfolio statement.


136

Programme 2013-14 2014-15 2015-16 2016-17 2017-18$'000 $'000 $'000 $'000 $'000

Expense measuresEfficiency Dividend - a further temporary increase of 0.25 per cent 1.1

Departmental expenses - (211) (422) (628) (638) Total - (211) (422) (628) (638)

Total expense measuresDepartmental - (211) (422) (628) (638)

Total - (211) (422) (628) (638)

Programme 2013-14 2014-15 2015-16 2016-17 2017-18$'000 $'000 $'000 $'000 $'000

Measures Public Services Efficiencies1 1.1

Departmental expenses (3) (16) (62) (75) (260) Total (3) (16) (62) (75) (260) Reforms to the APS management and efficient procurement of agency softw are2 1.1

Departmental expenses (74) (87) (106) (48) - Total (74) (87) (106) (48) - Efficiency Dividend – Temporary increase in rate 1.1

Departmental expenses - (843) (1,701) (2,757) (814) Total - (843) (1,701) (2,757) (814)

Total measuresDepartmental (77) (945) (1,868) (2,879) (1,074)

Total (77) (945) (1,868) (2,879) (1,074)




Government outcomes are the intended results, impacts or consequences of actions by the government on the Australian community. Commonwealth programmes are the primary vehicle by which government agencies achieve the intended results of their outcome statements. Agencies are required to identify the programmes which contribute to government outcomes over the Budget and forward years.Each outcome is described below together with its related programsme, specifying the performance indicators and targets used to assess and monitor the performance of the Fair Work Commission in achieving government outcomes.

Outcome 1: Simple, fair and flexible workplace relations for employees and employers through the exercise of powers to set and vary minimum wages and modern awards, facilitate collective bargaining, approve agreements and deal with disputes.

Outcome 1 strategyThe Fair Work Commission has a single planned outcome.

137


Outcome expenses statementTable 2.1 provides an overview of the total expenses for Outcome 1 by programme.Table 2.1 Budgeted expenses for Outcome 1

1 Departmental Appropriation combines "Ordinary annual services (Appropriation Bill No. 1)" and "Revenue from independent sources (s31)".2 Expenses not requiring appropriation in the Budget year is made up of Depreciation Expense, Amortisation Expense, Makegood Expense, Audit Fees.


Programme 1: Dispute resolution, minimum wage setting, orders and approval of agreements

Programme objectiveTo exercise powers under the Fair Work Act 2009: in accordance with the objects of the Act in a manner that is fair and just; is quick, informal and avoids

unnecessary technicalities; is open and transparent; and promotes harmonious and cooperative workplace relations.

To exercise powers under the Road Safety Remuneration Act 2012 in accordance with the objects of the Act.Programme 1 expensesThe functions of the Fair Work Commission and the Road Safety Remuneration Tribunal are prescribed by legislation. New and/or changed legislative requirements may impact forward year expenses.

138



$'000 $'000Program 1.1: Dispute resolution, minimum wage setting, orders and approval of agreementsDepartmental expenses

Departmental appropriation 1 78,627 81,184Expenses not requiring appropriation in the Budget year 2 2,576 3,576

Total for Program 1.1 81,203 84,760Outcome 1 Totals by appropriation typeDepartmental expenses

Departmental appropriation 1 78,627 81,184Expenses not requiring appropriation in the Budget year 2 2,576 3,576Total expenses for Outcome 1 81,203 84,760


Outcome 1: Simple, fair and flexible w orkplace relations for employees and employers through the exercise of pow ers to set and vary minimum wages and modern awards, facilitate collective bargaining, approve agreements and deal w ith diputes



1 Expenses not requiring appropriation in the Budget year is made up of Depreciation Expense and Amortisation Expense.

Linked to: The Fair Work Commission and the Fair Work Ombudsman are created under the Fair Work Act 2009. The Commission and the Fair Work Ombudsman have cooperative approaches to the delivery of services to employees, employers and organisations.

139

2013-14 2014-15 2015-16 2016-17 2017-18Revised Budget Forw ard Forw ard Forw ard

budget year 1 year 2 year 3('000) $'000 $'000 $'000 $'000 $'000Annual departmental expenses:

Departmental item 78,627 81,184 81,136 80,374 81,668Expenses not requiring appropriation in

the Budget year 1 2,576 3,576 3,497 3,498 3,498Total program expenses 81,203 84,760 84,633 83,872 85,166


Programme 1 deliverables The deliverables for the Fair Work Commission are: dispute resolution determining unfair dismissal applications minimum wage decisions orders relating to industrial action processes relating to modern awards approval of agreements regulation of registered organisations dealing with workplace bullying applications.

The deliverables for the Road Safety Remuneration Tribunal are: developing an annual work programme making road safety remuneration orders dispute resolution approval of road transport collective agreements conducting research into pay and conditions that could affect safety

in the road transport industry.Table 2.1.1A Programme 1 deliverables

140


budget year 1 year 2 year 3$'000 $'000 $'000 $'000 $'000

DeliverablesDispute resolution, minimum w age decsion, 81,203 84,760 84,633 83,872 85,166

orders and approval of agreements


Programme 1 key performance indicators The key performance indicators for the Fair Work Commission are: Improve the time elapsed from lodging applications to finalising

conciliations in unfair dismissal applications. Annual wage review to be completed to enable an operative date of

1 July. Improve the time taken to list applications relating to industrial

action. Improve the agreement approval time. 95 per cent of financial reports required to be lodged under the Fair

Work (Registered Organisations) Act 2009 are assessed for compliance within 40 working days.

The key performance indicators for the Road Safety Remuneration Tribunal are: Road safety remuneration orders reviewed within 12 months of

expiry of any preceding order. An annual work programme is developed. Research developed and submissions obtained or received are

published on the website in a timely manner as appropriate.

141


Section 3: Explanatory tables and budgeted financial statements


Table 3.1.1: Movement of administered funds between yearsThe Fair Work Commission has no administered funds. For this reason Table 3.1.1 is not presented.Table 3.1.2: Special AccountsThe Fair Work Commission has no special accounts. For this reason Table 3.1.2 is not presented.Table 3.1.3: Australian Government Indigenous Expenditure (AGIE)The Fair Work Commission has no Australian Government Indigenous Expenditure. For this reason Table 3.1.3 is not presented.


3.2.1 Differences in agency resourcing and financial statementsThe Fair Work Commission has nil difference to report.3.2.2 Analysis of budgeted financial statementsThe Fair Work Commission is budgeting for a deficit equal to the unappropriated depreciation and amortisation expense in 2014–15 and the three forward years. Total revenue is estimated to be $81.18 million in 2014–15, and total expenses to be $84.76 million. Total assets for 2014–15 are estimated to be $78.2 million dollars. Non-financial assets reflect the operations of the Commission, being office fit outs, computer and office equipment, and computer software (included in intangibles). The Commission is planning asset acquisitions in the 2014–15 year for information technology equipment, software, and office accommodation fit outs. Total liabilities for 2014–15 are estimated to be $28 million. The largest liabilities are accrued employee entitlements.

142


3.2.3 Budgeted financial statements tablesTable 3.2.1 Comprehensive income statement (showing net cost of services) for the period ended 30 June

Prepared an Australian accounting standards basis.

143


2013-14 2014-15 2015-16 2016-17 2017-18$'000 $'000 $'000 $'000 $'000

EXPENSESEmployee benefits 50,798 55,078 55,015 54,427 55,319 Suppliers 28,005 26,282 26,218 26,045 26,447 Depreciation and amortisation 2,400 3,400 3,400 3,400 3,400 Total expenses 81,203 84,760 84,633 83,872 85,166 LESS: OWN-SOURCE INCOMEOwn-source revenueOther 1,244 1,286 1,329 1,421 1,421 Total own-source revenue 1,244 1,286 1,329 1,421 1,421 GainsOther 176 176 97 98 98 Total gains 176 176 97 98 98 Total own-source income 1,420 1,462 1,426 1,519 1,519 Net cost of (contribution by)

services 79,783 83,298 83,207 82,353 83,647 Revenue from Government 77,383 79,898 79,807 78,953 80,247 Surplus (Deficit) attributable to

the Australian Government (2,400) (3,400) (3,400) (3,400) (3,400) OTHER COMPREHENSIVE INCOMEChanges in asset revaluation surplus - - - - - Total other comprehensive income - - - - - Total comprehensive income (2,400) (3,400) (3,400) (3,400) (3,400)Total comprehensive income

attributable to the Australian Government (2,400) (3,400) (3,400) (3,400) (3,400)


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


Prepared an Australian accounting standards basis.

144

Note: Impact of Net Cash Apppropriation Arrangements2013-14 2014-15 2015-16 2016-17 2017-18


(loss) less depreciation/amortisationexpenses previously funded throughrevenue appropriations. - - - - -

plus depreciation/amortisation expenses (2,400) (3,400) (3,400) (3,400) (3,400) previously funded through revenueappropriations1

Total Comprehensive Income (loss) - as per the Statement ofComprehensive Income (2,400) (3,400) (3,400) (3,400) (3,400)


Table 3.2.2 Budgeted departmental balance sheet (as at 30 June)

Prepared on an Australian accounting standards basis.

145


2013-14 2014-15 2015-16 2016-17 2017-18$'000 $'000 $'000 $'000 $'000


Cash and cash equivalents 421 421 421 421 421Trade and other receivables 53,957 54,070 54,070 54,070 54,070

Total financial assets 54,378 54,491 54,491 54,491 54,491Non-financial assets

Land and buildings 17,454 15,448 13,435 12,018 10,601Property, plant and equipment 4,695 4,906 4,784 5,036 5,615Intangibles 999 1,734 2,896 3,096 2,996Other non-financial assets 1,653 1,653 1,653 1,653 1,653

Total non-financial assets 24,801 23,741 22,768 21,803 20,865Assets held for sale - - - - -

Total assets 79,179 78,232 77,259 76,294 75,356LIABILITIESPayables

Suppliers 2,692 2,692 2,692 2,692 2,692Other Payables 8,550 8,553 8,553 8,553 8,553

Total payables 11,242 11,245 11,245 11,245 11,245Provisions

Employee provisions 17,448 17,448 17,448 17,448 17,448Other provisions 89 89 89 89 89

Total provisions 17,537 17,537 17,537 17,537 17,537Liabilities included in disposal

groups held for sale - - - - -Total liabilities 28,779 28,782 28,782 28,782 28,782Net assets 50,400 49,450 48,477 47,512 46,574EQUITYParent entity interest

Contributed equity 47,928 50,378 52,805 55,240 57,702Retained surplus 2,472 -928 (4,328) (7,728) (11,128)

Total parent entity interest 50,400 49,450 48,477 47,512 46,574Total Equity 50,400 49,450 48,477 47,512 46,574


Table 3.2.3 Budgeted statement of changes in equity—summary of movement (Budget Year 2014–15)


146


reserve capital$'000 $'000 $'000 $'000 $'000

Opening balance as at 1 July 2014Balance carried forw ard f rom

previous period 2,472 - - 47,928 50,400Adjusted opening balance 2,472 - - 47,928 50,400Comprehensive income

Surplus (def icit) for the period (3,400) - - - (3,400) Total comprehensive income (3,400) - - - (3,400)

of w hich:Attributable to the Australian Government (3,400) - - - (3,400)

Transactions with ownersContributions by owners

Departmental Capital Budget (DCBs) - - - 2,450 2,450 Sub-total transactions with owners - - - 2,450 2,450

Transfers betw een equitycomponents - - - - -

Estimated closing balanceas at 30 June 2015 (928) - - 50,378 49,450


Table 3.2.4 Budgeted departmental statement of cash flows (for the period ended 30 June)


147


2013-14 2014-15 2015-16 2016-17 2017-18$'000 $'000 $'000 $'000 $'000


Appropriations 87,894 79,785 79,807 78,953 80,247Other 1,244 1,286 1,329 1,421 1,421




operating activities 10,511 (110) - - - INVESTING ACTIVITIESCash received - - - - - Total cash received - - - - - Cash used



investing activities (10,860) (2,340) (2,427) (2,435) (2,462) FINANCING ACTIVITIESCash received

Contributed equity 349 2,450 2,427 2,435 2,462Total cash received 349 2,450 2,427 2,435 2,462Cash used


financing activities 349 2,450 2,427 2,435 2,462Net increase (decrease)


beginning of the reporting period 421 421 421 421 421Cash and cash equivalents at the

end of the reporting period 421 421 421 421 421


Table 3.2.5 Departmental capital budget statement

1 Includes both current and prior Bill 2/4/6 appropriations and special capital appropriations2 Does not include annual finance lease costs. Include purchase from current and previousyears' Departmental Capital Budgets (DCBs).3 Includes the following sources of funding: - current and prior year Bill 1/3/5 appropriations (excluding amounts from the DCB). - donations and contributions - gifts - internally developed assets - s31 relevant agency receipts (for FMA agencies only) - proceeds from the sale of assets


Table 3.2.6 Statement of asset movements (2014–15)

148


2013-14 2014-15 2015-16 2016-17 2017-18$'000 $'000 $'000 $'000 $'000

NEW CAPITAL APPROPRIATIONSCapital budget - Bill 1 (DCB) 349 2,450 2,427 2,435 2,462 Equity injections - Bill 2 - - - - -

Total new capital appropriations 349 2,450 2,427 2,435 2,462 Provided for:

Purchase of non-f inancial assets 349 2,450 2,427 2,435 2,462 Total Items 349 2,450 2,427 2,435 2,462

PURCHASE OF NON-FINANCIALASSETSFunded by capital appropriations 1 - - - - -

Funded by capital appropriation - DCB 2 860 2,340 2,427 2,435 2,462 Funded internally from

departmental resources 3 10,000 - - - - TOTAL 10,860 2,340 2,427 2,435 2,462 RECONCILIATION OF CASH


Total purchases 10,860 2,340 2,427 2,435 2,462 less additions by finance lease - - - - - less additions by creditors / borrow ings - - - - - plus borrow ing / f inance costs - - - - - plus Annual f inance lease costs - - - - - less Gifted assets - - - - - less s32 / restructuring - - - - -

Total cash used toacquire assets 10,860 2,340 2,427 2,435 2,462


1 "Appropriation ordinary annual services" refers to funding provided through Appropriation Bill (No.1) 2014-15 for depreciation / amortisation expenses, DCBs or other operational expenses.2 Net proceeds may be returned to the OPA.


149

Buildings Other property, Computer Totalplant and software and

equipment intangibles$'000 $'000 $'000 $'000

As at 1 J uly 2014Gross book value 28,660 5,889 2,374 36,923Accumulated depreciation/amortisation

and impairment (11,206) (1,194) (1,375) (13,775)Opening net book balance 17,454 4,695 999 23,148CAPITAL ASSET ADDITIONSEstimated expenditure on

new or replacement assetsBy purchase - appropriation ordinary

annual services 1 194 1,111 1,035 2,340Disposals - - - -

Total additions 194 1,111 1,035 2,340Other movementsDepreciation/amortisation expense (2,200) (900) (300) (3,400)Disposals 2 - - - -Total other movements (2,200) (900) (300) (3,400)As at 30 J une 2015Gross book value 28,854 7,000 3,409 39,263Accumulated depreciation/amortisation

and impairment (13,406) (2,094) (1,675) (17,175)Closing net book balance 15,448 4,906 1,734 22,088


Table 3.2.7 Schedule of budgeted income and expenses administered on behalf of Government (for the period ended 30 June)


Table 3.2.8 Schedule of budgeted assets and liabilities administered on behalf of Government (as at 30 June)The Fair Work Commission has no administered assets and liabilities. For this reason Table 3.2.8 is not presented.

150


2013-14 2014-15 2015-16 2016-17 2017-18$'000 $'000 $'000 $'000 $'000

EXPENSES ADMINISTERED ONBEHALF OF GOVERNMENT

Total expenses administeredon behalf of Government - - - - -

LESS:OWN-SOURCE INCOMEOw n-source revenue - - - - - Taxation revenue - - - - - Total taxation revenue - - - - - Non-taxation revenue

Other revenue 582 582 582 582 582Total non-taxation revenue 582 582 582 582 582Total own-source revenues

administered on behalf of Government 582 582 582 582 582

Gains - - - - - Total gains administered

on behalf of Government - - - - - Total own-sourced income

administered on behalf ofGovernment - - - - -

Net Cost of (contribution by)services - - - - -

Surplus (Deficit) 582 582 582 582 582OTHER COMPREHENSIVE INCOME

Changes in asset revaluation surplus - - - - - Total other comprehensive income - - - - -

Total comprehensive income (loss) 582 582 582 582 582


Table 3.2.9 Schedule of budgeted administered cash flows (for the period ended 30 June)


Table 3.2.10 Schedule of administered capital budget statementThe Fair Work Commission has no administered capital budget. For this reason Table 3.2.10 is not presented.Table 3.2.11 Statement of administered asset movements (2014–15)The Fair Work Commission has no administered assets and liabilities. For this reason Table 3.2.11 is not presented.

151


2013-14 2014-15 2015-16 2016-17 2017-18$'000 $'000 $'000 $'000 $'000


Other 582 582 582 582 582Total cash received 582 582 582 582 582 Cash used


operating activities 582 582 582 582 582INVESTING ACTIVITIESCash received



investing activities - - - - -FINANCING ACTIVITIESCash received



financing activities - - - - -Net increase (decrease) in

cash held - - - - -Cash to Off icial Public Account for:

- other 582 582 582 582 582Cash and cash equivalents at endof reporting period - - - - -


3.2.4 Notes to the Financial StatementsAccounting PolicyThe budgeted financial statements have been prepared in accordance with the requirements of the Finance Minister’s Orders issued by the Minister for Finance.The statements have been prepared: on an accrual accounting basis in compliance with Australian Accounting Standards and Australian

Equivalents to International Financial Reporting Standards (AEIFRS) and other authoritative pronouncements of the Australian Accounting Standards Board and the Consensus Views of the Urgent Issues Group.

Departmental Revenue from GovernmentRevenue from government represents the purchase of outputs from the Fair Work Commission by the Government. The changes reflected in the ordinary annual appropriations are a result of those new measures and variations that are explained in Section 1: Agency overview and resources, variations and measures.Departmental Revenue from Other SourcesRevenue from the sale of goods and services will be recognised upon the delivery of the goods or services to customers.Departmental Expenses – EmployeesThis item will represent payments made and net increases or decreases in entitlements owed to employees for their services provided in the financial year.Departmental Expenses – Suppliers This item will represent payments to suppliers for goods and services.Departmental Expenses – Depreciation and AmortisationProperty, plant and equipment assets are written-off to their estimated residual values over their estimated useful using, in all cases, the straight-line method of depreciation.Property plant and equipment assets will be depreciated over their useful lives between three and ten years. Leasehold improvements will be amortised on a straight-line basis over the lesser of the estimated useful life of the improvements or the unexpired period of the lease. Departmental Assets – Financial Assets – Receivables Receivables represent amounts which will be owing to the Fair Work Commission for goods and services it has provided to external parties and cash reserves held in the Official Public Account.

152


Departmental Assets – Non-Financial AssetsThese items represent future economic benefits that the Fair Work Commission will consume in producing outputs. Apart from re-valued assets, the reported value represents the purchase price paid, less depreciation incurred to date in using that asset from the transferring agencies.Land and Buildings, and Infrastructure, Plant and Equipment will initially be brought to account at cost, except for purchases costing less than $10,000 for leasehold improvements and $2,000 for all other classes, which will be expensed in the year of acquisition (other than where they form part of the group of similar items which are significant in total).Computer software, disclosed in the Departmental Balance Sheet as Intangibles, will be expensed in the year of acquisition except for purchases or internally developed software costing more than $2,000 which are capitalised at cost.The Fair Work Commission will annually reassess and adjust the values of Land and Buildings (leasehold improvements), Infrastructure, Plant and Equipment.Departmental Liabilities – Provisions – Employees Provision will be made for the Fair Work Commissions liability for employee entitlements arising from services rendered by the Fair Work Commission, Members and employees to balance date. This liability will encompass unpaid wages and salaries, annual and long service leave and Judges’ leave. No provision will be made for sick leave.The liability for leave expected to be settled within 12 months is to be measured at the nominal amount.Other employee entitlements payable later than one year will be estimated at the present value of the expected future cash outflows in relation to those entitlements. Attrition rates and pay rises through promotion and wage/salary agreements will be been taken into account.

153

Office of the Fair Work Building Industry

Inspectorate


OFFICE OF THE FAIR WORK BUILDING INDUSTRY INSPECTORATE

Section 1: Agency overview and resources................................1611.1 Strategic direction statement.......................................................1611.2 Agency resource statement..........................................................1621.3 Budget measures..........................................................................163Section 2: Outcomes and planned performance.........................1642.1 Outcomes and performance information......................................164Section 3: Explanatory tables and budgeted financial statements..............................................................................1683.1 Explanatory tables........................................................................1683.2 Budgeted financial statements.....................................................168

158

FWBII Budget Statements 2014–15

OFFICE OF THE FAIR WORK BUILDING INDUSTRY INSPECTORATE



The Office of the Fair Work Building Industry Inspectorate (FWBII) was established by the Fair Work (Building Industry) Act 2012 on 1 June 2012. FWBII began operations on 1 June 2012.In respect of the building and construction industry, FWBII is primarily responsible for: the provision of education, assistance and advice to industry

participants regarding their rights and obligations inquiring into and investigating alleged breaches of relevant

workplace laws commencing civil penalty litigation, or making submissions to the

Fair Work Commission, to enforce compliance by industry participants

referring matters to relevant authorities where appropriate in relation to:– Fair Work (Building Industry) Act 2012– Fair Work Act 2009, the Fair Work (Transitional Provisions and

Consequential Amendments) Act 2009 and the Independent Contractors Act 2006

– safety net contractual entitlements– awards, agreements and court and tribunal orders– the Building Code 2013

During 2014–15, FWBII plans to achieve the following outcome: enforce workplace relations laws in the building and construction

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

160



Table 1.1 shows the total resources from all sources. The table summarises how resources will be applied by outcome and by administered and departmental classification.Table 1.1: Office of the Fair Work Building Industry Inspectorate resource statement—Budget estimates for 2014–15 as at Budget May 2014

1 Appropriation Bill (No.1) 2014-152 Estimated adjusted balance carried forward from previous year3 Includes an amount of $0.442m in 2014-15 for the Departmental Capital Budget (refer to table 3.2.5 forfurther details). For accounting purposes this amount has been designated as 'contributions by owners'.4 s31 Relevant Agency receipts - estimate


161



2014-15 2014-15 2014-15 2013-14$'000 $'000 $'000 $'000


Departmental appropriationPrior year departmental appropriation2 43,669 43,669 43,787Departmental appropriation3 - 34,308 34,308 29,032s31 Relevant agency receipts4 - 44 44 41Total 43,669 34,352 78,021 72,860

Total ordinary annual services A 43,669 34,352 78,021 72,860Other services

Total - - - -Total other services B - - - -Total available annual

appropriations 43,669 34,352 78,021 72,860Special appropriationsTotal special appropriations C - - - -Total appropriations excluding

Special Accounts 43,669 34,352 78,021 72,860Special AccountsTotal Special Account D - - - -Total resourcingA+B+C+D 43,669 34,352 78,021 72,860Less appropriations drawn from


Total net resourcing for FWBII 43,669 34,352 78,021 72,860


1.3 BUDGET MEASURES

Budget measures relating to the Office of the Fair Work Building Industry Inspectorate are detailed in Budget Paper No. 2 and are summarised below.Table 1.2: Office of the Fair Work Building Industry Inspectorate 2014–15 Budget measuresPart 1: Measures announced since 2013–14 MYEFO

Prepared on a Government Financial Statistics (fiscal) basis.

162

Programme 2013-14 2014-15 2015-16 2016-17 2017-18$'000 $'000 $'000 $'000 $'000

Expense measuresEfficiency Dividend - a further temporary increase of 0.25 per cent 1.0

Departmental expenses - (88) (175) (263) (189) Total - (88) (175) (263) (189) Total expense measures

Departmental expenses 1.0 - (88) (175) (263) (189) Total - (88) (175) (263) (189)




Government outcomes are the intended results, impacts or consequences of actions by the government on the Australian community. Commonwealth programmes are the primary vehicle by which government agencies achieve the intended results of their outcome statements. Agencies are required to identify the programmes which contribute to government outcomes over the Budget and forward years.Each outcome is described below together with its related programmes, specifying the performance indicators and targets used to assess and monitor the performance of the Fair Work Building Industry Inspectorate in achieving government outcomes.

Outcome 1: Enforce workplace relations laws in the building and construction industry and ensure compliance with those laws by all participants in the building and construction industry through the provision of education, assistance and advice.

Outcome 1 StrategyKey strategies towards achieving FWBII’s outcome in 2014–15 are to: provide ready access to information on relevant workplace laws and

codes of practice provide education, assistance and advice to industry participants conduct investigations into alleged breaches of workplace laws undertake enforcement action, including civil penalty litigation

163


Outcome 1 Budgeted Expenses Table 2.1 provides an overview of the total expenses for Outcome 1, by programme.Table 2.1: Budgeted Expenses for Outcome 1

1 Departmental Appropriation combines “Ordinary annual services (Appropriation Bill No. 1)” and “Revenue from independent sources (s31)”.2 Expenses not requiring appropriation in the Budget year is made up of Depreciation Expenses, Amortisation Expense, Makegood Expense, Audit Fees.

164


Actual Expensesconstruction industry through the provision of education, assistance and advice.

Expenses

$'000 $'000Programme 1: Education Services and Compliance Departmental Expenses

Ordinary Annual Services (Appropriation Bill No. 1) 1 28,987 33,912 Expenses not requiring Appropriation in the Budget year 2 850 785

Total for Programme 1 29,837 34,697 Outcome 1 Totals by Appropriation typeDepartmental Expenses

Ordinary Annual Services (Appropriation Bill No. 1) 1 28,987 33,912 Expenses not requiring Appropriation in the Budget year 2 850 785

Total Expenses for Outcome 1 29,837 34,697 2013-14 2014-15


Outcome 1: Enforce workplace relations laws in the building and construction industry and ensure compliance with those laws by all partcipants in the building and



Programme 1: Education Services and Compliance Activities

Programme objectiveEnforce workplace relations laws in the building and construction industry and ensure compliance with those laws by all participants in the building and construction industry through the provision of education, assistance and advice.Table 2.1.1 Programme 1 expenses

Programme 1 deliverablesThe deliverables of the FWBII are to: provide information, advice and education on workplace laws to

foster voluntary compliance investigate claims regarding alleged breaches of workplace laws

and undertake targeted activities litigate, where necessary, to enforce compliance with workplace

laws.Table 2.1.1A Programme 1 deliverables

165


budget year 1 year 2 year 3$'000 $'000 $'000 $'000 $'000

Annual Departmental Expenses:Departmental Items 28,987 33,912 33,752 33,768 24,051

Expenses not requiring Appropriation in the Budget year 850 785 402 1,081 1,251 Total Departmental Expenses 29,837 34,697 34,154 34,849 25,302

2013-14 2014-15 2015-16 2016-17 2017-18Revised Budget Forw ard Forw ard Forw ardbudget year 1 year 2 year 3

Deliverables $'000 $'000 $'000 $'000 $'000

Education, investigation, provision of advice and information services 29,837 34,697 34,154 34,849 25,302


Programme 1 Key Performance IndicatorsThe key performance indicators for the FWBII are outlined in the following table and cover the key activities of education, advice and information services and investigations.Table 2.1.1B Programme 1 key performance indicatorsKey performance indicatorsQuality 2014–15 target

Level of satisfaction of clients with quality and timeliness of advice and assistance provided by FWBII.

75% of surveyed clients satisfied or highly satisfied

Timeliness in bringing actions against contraventions of the Fair Work Act 2009, the Independent Contractors Act 2006, the Fair Work (Building Industry) Act 2012, agreements, awards and orders.

File 75% of matters in court within 18 months of the complaint being lodged

Level of satisfaction of a range of industry participants with contact aimed at promoting appropriate standards of conduct.

75% of surveyed industry participants satisfied or highly satisfied

166


Section 3: Explanatory tables and budgeted financial statementsSection 3 presents explanatory tables and budgeted financial statements which provide a comprehensive snapshot of agency finances for the 2014–15 budget year. It explains how budget plans are incorporated into the financial statements and provides further details of the reconciliation between appropriations and programme expenses, movements in administered funds, special accounts and Australian Government Indigenous expenditure.


3.1.1 Movement of administered funds between yearsThe Fair Work Building Industry Inspectorate has no administered funds appropriations. For this reason Table 3.1.1 is not presented.3.1.2 Special AccountsThe Fair Work Building Industry Inspectorate has no special accounts. For this reason Table 3.1.2 is not presented.3.1.3 Australian Government Indigenous ExpenditureThe Fair Work Building Industry Inspectorate has no Australian Government Indigenous Expenditure. For this reason Table 3.1.3 is not presented.


3.2.1 Differences in agency resourcing and financial statementsThe Agency Resource Statement (Table 1.1) details the total appropriation available to an agency from all sources. For departmental operating appropriations (outputs) this includes carry-forward amounts as well as amounts appropriated at Budget. As agencies incur and are funded for future liabilities and employee entitlements, the total amount of departmental operating appropriation available to an agency is unlikely to be fully utilised in the Budget year. The difference between the agency resource statement and the sum of all payments made at the departmental outputs level is the expected carry-forward amount of resources for the 2014–15 Budget year, including amounts related to meeting future employee entitlement obligations.

167


3.2.2 Analysis of budgeted financial statementsThe Fair Work Building Industry Inspectorate is budgeting for an operating loss equal to the unappropriated depreciation and amortisation expense of $0.7 million for the 2014–15 financial year.Total revenues are estimated to be $34.0 million and total expenses $34.7 million. Total assets at the end of the 2014–15 financial year are estimated to be $46.2 million. The majority of the assets represent receivables (appropriations receivable) and property fit outs. Asset acquisitions are planned in Information Technology equipment and systems and on office accommodation fit outs.Total liabilities for 2014–15 are estimated at $6.8 million. The largest liability item is accrued employee entitlements.

168


3.2.3 Budgeted financial statements tablesTable 3.2.1: Comprehensive income statement (showing net cost of services) (for the period ended 30 June)


169


2013-14 2014-15 2015-16 2016-17 2017-18$'000 $'000 $'000 $'000 $'000

EXPENSESEmployee benefits 17,018 22,569 23,050 23,595 13,238 Suppliers 12,025 11,399 10,758 10,229 10,869 Depreciation and amortisation 794 729 346 1,025 1,195 Total expenses 29,837 34,697 34,154 34,849 25,302 LESS: OWN-SOURCE INCOMERevenueOther revenue 44 46 47 49 49 Total revenue 44 46 47 49 49 GainsResources free of charge 56 56 56 56 56 Total gains 56 56 56 56 56 Total own-source income 100 102 103 105 105 Net cost of services 29,737 34,595 34,051 34,744 25,197 Revenue from Government 28,943 33,866 33,705 33,719 24,002 Surplus (Deficit) attributable to the Australian Government (794) (729) (346) (1,025) (1,195) Total comprehensive income

attributable to the Australian Government (794) (729) (346) (1,025) (1,195)


$'000 $'000 $'000 $'000 $'000Total comprehensive income

(loss) excluding depreciation/amortisation expenses previouslyfunded through revenueappropriations - - - - -

less depreciation/amortisation expensespreviously funded through revenueappropriations 794 729 346 1,025 1,195

Total comprehensive income(loss) - as per the Statement ofComprehensive Income (794) (729) (346) (1,025) (1,195)


Table 3.2.2: Budgeted departmental balance sheet (as at 30 June)



170


2013-14 2014-15 2015-16 2016-17 2017-18$'000 $'000 $'000 $'000 $'000




Land and buildings 889 445 3,055 2,522 2,077Property, plant and equipment 110 292 813 671 572Intangibles 0 85 630 473 278Other non-financial assets 621 621 621 621 621

Total non-financial assets 1,620 1,443 5,119 4,287 3,548 Total assets 46,438 46,241 45,757 45,184 44,445 LIABILITIESPayables



Employee provisions 3,004 3,004 3,004 3,004 3,004Total provisions 3,004 3,004 3,004 3,004 3,004 Total liabilities 6,765 6,855 6,272 6,272 6,272 Net assets 39,673 39,386 39,485 38,912 38,173 EQUITY*Parent entity interest

Contributed equity 4,736 5,178 5,623 6,075 6,531Retained surplus

(accumulated deficit) 34,937 34,208 33,862 32,837 31,642Total parent entity interest 39,673 39,386 39,485 38,912 38,173Total Equity 39,673 39,386 39,485 38,912 38,173


Table 3.2.3: Departmental statement of changes in equity—summary of movement (Budget year 2014–15)


171


reserve capital$'000 $'000 $'000 $'000 $'000

Opening balance as at 1 July 2014 34,937 - - 4,736 39,673 Balance carried forw ard from

previous period - - - - - Adjusted opening balance 34,937 - - 4,736 39,673 Income and expense

Surplus (deficit) for the period (729) - - - (729) Total income and expense

recognised directly in equity (729) - - - (729) Transactions with owners

Contribution by ownersAppropriation (equity injection) - - - - - Departmental Capital Budget (DCBs) - - - 442 442

Sub-total transactions with owners - - - 442 442 Estimated closing balance

as at 30 June 2015 34,208 - - 5,178 39,386


Table 3.2.4: Budgeted departmental statement of cash flows(for the period ended 30 June)


172


2013-14 2014-15 2015-16 2016-17 2017-18$'000 $'000 $'000 $'000 $'000


Appropriations 28,798 33,954 33,018 33,460 24,002 Other - - - 49 49

Total cash received 28,798 33,954 33,018 33,509 24,051 Cash used

Employees 16,183 21,702 22,801 23,595 13,238 Suppliers 12,459 12,161 7,393 10,173 10,813

Total cash used 28,642 33,863 30,194 33,768 24,051 Net cash from (or used by)

operating activities 156 91 2,824 (259) - INVESTING ACTIVITIESCash received

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

Purchase of property, plant and equipment 15 552 4,022 193 456

Total cash used 15 552 4,022 193 456 Net cash from (or used by)

investing activities (15) (552) (4,022) (193) (456) FINANCING ACTIVITIESCash received

Appropriations - contributed equity 160 463 1,280 452 456 Total cash received 160 463 1,280 452 456 Cash used

Other - - - - - Total cash used - - - - - Net cash from (or used by)

financing activities 160 463 1,280 452 456 Net increase (or decrease)

in cash held 301 2 82 - - Cash at the beginning of

the reporting period 265 566 568 650 650 Cash at the end of the

reporting period 566 568 650 650 650


Table 3.2.5: Departmental capital budget statement

1 Does not include annual finance lease costs. Include purchase from current and previousyears' Departmental Capital Budgets (DCBs).2 Includes the following sources of funding: - current Bill 1 and prior year Act 1/3/5 appropriations (excluding amounts from the DCB). - donations and contributions - gifts - internally developed assets - s31 relevant agency receipts (for FMA agencies only) - proceeds from the sale of assets


173


2013-14 2014-15 2015-16 2016-17 2017-18$'000 $'000 $'000 $'000 $'000

NEW CAPITAL APPROPRIATIONSCapital budget - Bill 1 (DCB) 118 442 445 452 456

Total new capital appropriations 118 442 445 452 456Provided for:

Purchase of non-f inancial assets 118 442 445 452 456Total Items 118 442 445 452 456

PURCHASE OF NON-FINANCIALASSETSFunded by capital appropriation - DCB 1 15 552 1,606 193 456Funded internally from

departmental resources 2 - - 2,416 - -TOTAL 15 552 4,022 193 456RECONCILIATION OF CASH


Total purchases 15 552 4,022 193 456Total cash used to

acquire assets 15 552 4,022 193 456


Table 3.2.6: Statement of non-financial asset movements – departmental (2014–15)


Table 3.2.7: Schedule of budgeted income and expenses administered on behalf of Government (for the period ended 30 June)The FWBII has no budgeted administered income or expenses. For this reason Table 3.2.7 is not presented.

Table 3.2.8: Schedule of budgeted assets and liabilities administered on behalf of Government (as at 30 June)The FWBII has no budgeted administered assets or liabilities. For this reason Table 3.2.8 is not presented.

Table 3.2.9: Schedule of budgeted administered cash flows(for the period ended 30 June)The FWBII has no budgeted administered cash flows. For this reason Table 3.2.9 is not presented.

Table 3.2.10: Schedule of administered capital budget The FWBII has no administered capital budget. For this reason Table 3.2.10 is not presented.

174

Infrastructure,

Land and Plant &

Buildings Equipment Intangibles Total$'000 $'000 $'000 $'000

as at 1 July 2014Gross book value 7,769 590 794 9,153 Accumulated depreciation/amortisation (6,880) (480) (794) (8,154)Opening net book balance 889 110 - 999 CAPITAL ASSET ADDITIONSEstimated expenditure on new or replacement assetsby purchase or internally developed 99 353 100 552 Sub-total 99 353 100 552 Other MovementsDepreciation/amortisation expense (543) (171) (15) (729)as at 30 June 2015Gross book value 7,868 943 894 9,705 Accumulated depreciation/amortisation (7,423) (651) (809) (8,883)Closing net book balance 445 292 85 822


Table 3.2.11: Schedule of non-financial asset movements - administered The FWBII has no administered non-financial assets. For this reason Table 3.2.11 is not presented.

175


3.2.4 Notes to the Financial StatementsAccounting PolicyThe budgeted financial statements have been prepared in accordance with the requirements of the Finance Minister’s Orders issued by the Minister for Finance.The statements have been prepared: On an accrual accounting basis in compliance with Australian Accounting Standards and Australian


Agency Revenue from governmentRevenue from government represents the purchase of outputs from the FWBII by the government. Agency Revenue – Own Source IncomeRevenue from the sale of goods and services is recognised upon the delivery of the goods or services to customers.Agency Expenses – Employee BenefitsThis item represents payments made and net increases or decreases in entitlements owed to employees for their services provided in the financial year.Agency Expenses – Suppliers This item represents payments to suppliers for goods and services.Agency Expenses – Depreciation and AmortisationProperty, plant, equipment and intangible assets are written-off to their estimated residual values over their estimated useful lives to FWBII using the straight-line method of depreciation. Forward estimates of depreciation expenses are made using forecasts of net capital acquisitions over the forward years. Agency Assets – Financial Assets – CashCash represents notes and coins held and deposits at call with a bank or financial institution.Agency Assets – Financial Assets – Receivables Receivables represent amounts owing to FWBII for cash reserves held in the Official Public Account and prepayments.Agency Assets – Non-Financial AssetsThese items represent future economic benefits that the FWBII will consume in producing outputs.

176


Property, plant and equipment and intangibles are brought to account at cost, except for purchases costing less than $50,000 for internally developed computer software, less than $20,000 for leasehold improvements and less than $2,000 for all other classes, which are expensed in the year of acquisition (other than where they form part of a group of similar items which are significant in total).Following initial recognition at cost property, plant and equipment are carried at fair value less accumulated depreciation. Valuations are conducted with sufficient frequency to ensure that the carrying amount does not differ materially from the assets’ fair values at reporting date.Agency Liabilities – Provisions – Employees Provision has been made for the FWBII’s liability for employee entitlements arising from services rendered by employees to balance date. This liability encompasses unpaid wages and salaries, annual and long service leave. No provision is made for sick leave.Employee entitlements payable are measured as the present value of the estimated future cash outflows to be made in respect of services provided by employees up to the reporting date. Liabilities expected to be settled within twelve months are measured at the nominal amount.Agency Liabilities – Payables – SuppliersSuppliers and other payables are recognised at amortised cost. Liabilities are recognised to the extent that the goods or services have been received (and irrespective of having been invoiced).

177

Fair Work Ombudsman


Fair Work Ombudsman Budget Statements 2014–15

FAIR WORK OMBUDSMANSection 1: Agency overview and resources................................1851.1 Strategic direction statement.......................................................1851.2 Agency resource statement..........................................................1861.3 Budget measures..........................................................................187Section 2: Outcomes and planned performance.........................1892.1 Outcomes and performance information......................................189Section 3: Explanatory tables and budgeted financial statements..............................................................................1933.1 Explanatory tables........................................................................1933.2 Budgeted financial statements.....................................................194

182


FAIR WORK OMBUDSMAN



The Fair Work Ombudsman was created by the Fair Work Act 2009 on 1 July 2009.The Fair Work Ombudsman promotes harmonious, productive and cooperative workplace relations and ensures compliance with Commonwealth workplace laws by: offering people a single point of contact for them to receive

accurate and timely advice and information about Australia’s workplace relations system

making compliance with workplace laws as easy as possible through educating people working in Australia about their workplace rights and obligations

investigating complaints or suspected contraventions of workplace laws, awards and agreements

using both informal and formal compliance tools, including litigation when necessary, to enforce workplace laws and to deter people from not complying with their workplace responsibilities.

The strategic focus of the Fair Work Ombudsman in 2014–15 is to ensure that there is increased and easier compliance with Commonwealth workplace laws through educating and advising employees, employers, outworkers, outworker entities and organisations about the federal workplace relations system.

184



Table 1.1 shows the total resources from all sources. The table summarises how resources will be applied by outcome and by administered and departmental classification.Table 1.1: Agency resource statement — Budget estimates for 2014–15 as at Budget May 2014

1 Appropriation Bill (No.1) 2014-15.2 Estimated adjusted balance carried forward from previous year.3 Includes an amount of $4.332m in 2014-15 for the Departmental Capital Budget (refer to table 3.2.5 for further details). For accounting purposes this amount has been designated as 'contributions by owners'.4 s31 Relevant Agency receipts - estimate.

All figures are GST exclusive.

185



2014-15 2014-15 2014-15 2013-14$'000 $'000 $'000 $'000

Ordinary Annual Services¹Departmental

Prior year Departmental appropriation2 67,782 - 67,782 86,011 Departmental appropriation3 - 115,591 115,591 116,144 s31 Relevant agency receipts4 - 4,650 4,650 -

Total ordinary annual services A 67,782 120,241 188,023 202,155 Other services5

Departmental non-operating - - - - Total other services B - - - - Total Available Annual

Appropriations 67,782 120,241 188,023 202,155 Special Appropriations

Fair Work Act 2009 890 200 1,090 948 Total Special Appropriations C 890 200 1,090 948 Total Appropriations excluding

Special Accounts 68,672 120,441 189,113 203,103 Special AccountsTotal Special Accounts D - - - -

Total resourcing 68,672 120,441 189,113 203,103 A+B+C+DLess appropriations draw n fromannual or special appropriations - - - - Total net resourcing for Fair Work Ombudsman 68,672 120,441 189,113 203,103


1.3 BUDGET MEASURES

Budget measures relating to the Fair Work Ombudsman are detailed in Budget Paper No. 2 and are summarised below.Table 1.2: Agency 2014–15 Budget measuresPart 1: Measures announced since 2013–14 MYEFO


186

Programme 2013-14 2014-15 2015-16 2016-17 2017-18$'000 $'000 $'000 $'000 $'000

Expense measures Efficiency Dividend - a further temporary increase of 0.25 per cent 1.0


Departmental - (296) (579) (855) (860) Total - (296) (579) (855) (860)



1 This is a measure announced in the 2013-14 Budget but not previously reported in a portfolio statement.2 This was a measure announced in the 2013 Economic Statement measure but not previously reported in a portfolio statement.


187

Programme 2013-14 2014-15 2015-16 2016-17 2017-18$'000 $'000 $'000 $'000 $'000

Measures Public Services Efficiencies1 1.0

Departmental expenses (28) (175) (482) (763) - Total (28) (175) (482) (763) - Reforms to the APS management and efficient procurement of agency softw are2 1.0

Departmental expenses (275) (388) (557) (430) - Total (275) (388) (557) (430) - Efficiency Dividend - temporary increase in the rate 1.0

Departmental expenses - (1,209) (2,692) (4,138) (1,109) Total - (1,209) (2,692) (4,138) (1,109) Total measures

Departmental (303) (1,772) (3,731) (5,331) (1,109) Total (303) (1,772) (3,731) (5,331) (1,109)




Government outcomes are the intended results, impacts or consequences of actions by the government on the Australian community. Commonwealth programmes are the primary vehicle by which government agencies achieve the intended results of their outcome statements. Agencies are required to identify the programmes which contribute to government outcomes over the Budget and forward years.Each outcome is described below together with its related programmes, specifying the performance indicators and targets used to assess and monitor the performance of the Fair Work Ombudsman in achieving government outcomes.

Outcome 1: Compliance with workplace relations legislation by employees and employers through advice, education and where necessary enforcement.

Outcome 1 StrategyThe workplace rights and obligations of employees, employers, outworkers, outworker entities and organisations are protected and enforced by the Fair Work Ombudsman through a mix of targeted compliance and education activities and investigation of alleged breaches of workplace laws. The Fair Work Ombudsman has a focus on achieving compliance by working with parties and without the need for formal compliance tools in every matter. When appropriate, the Fair Work Ombudsman will use formal compliance tools, such as enforceable undertakings, compliance notices and, where necessary, litigation in the courts as a means of both general and specific deterrence.The Fair Work Ombudsman provides a single national point of contact for accurate advice on the federal workplace relations system.The Fair Work Ombudsman provides advice and information on workplace relations matters through the Fair Work Infoline. Fair Work Ombudsman advisors are located in contact centres in a number of states and provide advice on a range of matters including wage rates and conditions of employment. As part of its ongoing educative role, the agency undertakes education and compliance campaigns and provides information services and tools to support best practice workplace relations. The educational and compliance campaigns are run at national, state and local levels and target particular industries or geographical locations.

188


The Fair Work Ombudsman has appointed a number of staff as Fair Work Inspectors. These officers are located in all states and territories and investigate complaints received regarding alleged instances of non-compliance with federal workplace relations laws. In the majority of instances compliance with workplace relations laws is achieved without the need for formal compliance tools to be used and is assisted by targeted and industry specific auditing activities. Litigation activities are used when and as required in the most serious cases, particularly where breaches have significant consequences, when they affect a vulnerable group or when a person does not acknowledge that the problem requires rectification.The Fair Work Ombudsman makes public statements about its enforcement activities to educate and ensure it has the trust of the Australian community and to foster general deterrence.Outcome 1 Budgeted Expenses Table 2.1 provides an overview of the total expenses for outcome 1, by programme.Table 2.1: Budgeted Expenses for Outcome 1

1 Departmental Appropriation combines “Ordinary annual services (Appropriation Bill No. 1)” and “Revenue from independent sources (s31)”.2 Expenses not requiring appropriation in the Budget year is made up of Depreciation Expenses, Amortisation Expense, Makegood Expense, Audit Fees.

189


Actual ExpensesExpenses

$'000 $'000Program 1: Education Services and Compliance ActivitiesAdministered Expenses

Special Appropriation 58 200 Departmental Expenses

Ordinary Annual Services (Appropriation Bill No. 1) 1 116,385 115,909 Expenses not requiring Appropriation in the Budget year 2 8,195 10,333 Total for Program 1 124,638 126,442

Outcome 1 Totals by Appropriation typeAdministered Expenses

Special Appropriation 58 200 Departmental Expenses

Ordinary Annual Services (Appropriation Bill No. 1) 1 116,385 115,909 Expenses not requiring Appropriation in the Budget year 2 8,195 10,333

Total Expenses for Outcome 1 124,638 126,442 2013-14 2014-15


Outcome 1: Compliance with w orkplace relations legislation by employees and employers through advice, education and where necessary enforcement.



Programme 1: Education Services and Compliance Activities

Programme objectiveTo educate employers, employees, organisations and contractors about the workplace relations system and to ensure that compliance with workplace laws is as easy as possible.Table 2.1.1 Programme 1 expenses

Linked to: The Fair Work Ombudsman and Fair Work Australia were created under the Fair Work Act 2009. Fair Work Australia was renamed the Fair Work Commission on 1 January 2013 under the Fair Work Amendment Act 2012. The Fair Work Ombudsman and the Fair Work Commission develop cooperative approaches to the delivery of services to employees, employers and organisations.

Programme 1 deliverablesThe deliverables of the Fair Work Ombudsman are to: provide information, advice and education on the requirements and

flexibilities of workplace laws to foster and increase compliance investigate claims regarding alleged breaches of workplace laws

and undertake targeted activities enforce compliance with workplace laws through informal and

formal compliance tools, such as enforceable undertakings, compliance notices or, where necessary, litigation in the courts.

Table 2.1.1A Programme 1 deliverables

190


$'000 $'000 $'000 $'000 $'000Special Appropriations:

Fair Work Act 2009 58 200 200 200 200 Total Administered Expenses 58 200 200 200 200 Annual Departmental Expenses:

Departmental Items 116,385 115,909 111,755 107,754 108,126 Expenses not requiring Appropriation in the Budget year 8,195 10,333 10,701 7,102 8,069 Total Departmental Expenses 124,580 126,242 122,456 114,856 116,195


Deliverables $'000 $'000 $'000 $'000 $'000

Education, investigation, provision of advice and information services 124,638 126,442 122,656 115,056 116,395


Programme 1 Key Performance IndicatorsThe key performance indicators for the Fair Work Ombudsman are outlined in the following table and cover the key activities of education, advice and information services and investigationsTable 2.1.1B Programme 1 key performance indicators

191

2013-14 2014-15 2015-16 2016-17 2017-18Key Performance Revised Budget Forw ard Forw ard Forw ardIndicators budget target year 1 year 2 year 3

Number of targeted campaigns:National 4 4 4 4 4

2 2 2 2 2

80 80 80 80 80

80 80 80 80 80

99 99 99 99 99

99 99 99 99 99Availability of Website (time available as a percentage of total time)

State (number of campaigns in each state/ territory)

Calls to the Contact Centre resolved at the first point of contact (percentage of total calls)

Availability of Contact Centre services (percentage of availability during advertised hours)

Investigations into complaints about breaches of federal agreements or aw ards completed w ithin 90 days (percentage of total complaints)


Section 3: Explanatory tables and budgeted financial statementsSection 3 presents explanatory tables and budgeted financial statements which provide a comprehensive snapshot of agency finances for the budget year 2014–15. It explains how budget plans are incorporated into the financial statements and provides further details of the reconciliation between appropriations and programme expenses, movements in administered funds, special accounts and Australian Government Indigenous expenditure.


3.1.1 Movement of administered funds between yearsThe Fair Work Ombudsman has no movement of administered funds appropriations. For this reason Table 3.1.1 is not presented.3.1.2 Special AccountsTable 3.1.2 Estimates of Special Account Flows and Balances

3.1.3 Australian Government Indigenous ExpenditureThe Fair Work Ombudsman has no Australian Government Indigenous Expenditure. For this reason Table 3.1.3 is not presented.

192


Outcome $'000 $'000 $'000 $'000 $'000Other Trust Monies - Financial 1Management andAccountability Act 1997 - - - - -s.20 (Unclaimed Wages) 2,709 - - (2,709) -Total Special Accounts

2014-15 Budget estimate - - - - -Total Special Accounts

2013-14 estimated actual 2,709 - - (2,709) -



3.2.1 Differences in agency resourcing and financial statementsThe Agency Resource Statement (Table 1.1) details the total appropriation available to an agency from all sources. For departmental operating appropriations (outputs) this includes carry-forward amounts as well as amounts appropriated at Budget. As agencies incur and are funded for future liabilities and employee entitlements, the total amount of departmental operating appropriation available to an agency is unlikely to be fully utilised in the Budget year. The difference between the agency resource statement and the sum of all payments made at the departmental outputs level is the expected carry-forward amount of resources for the 2014–15 Budget year, including amounts related to meeting future employee entitlement obligations.3.2.2 Analysis of budgeted financial statementsThe Fair Work Ombudsman is budgeting for an operating loss equal to the unappropriated depreciation and amortisation expense of $10.2 million for the 2014–15 financial year.Total revenues are estimated to be $116.0 million and total expenses $126.2 million. Total assets at the end of the 2014–15 financial year are estimated to be $85.2 million. The majority of the assets represent receivables (appropriations receivable) and property fit outs. Asset acquisitions are planned in Information Technology equipment and systems and on office accommodation fit outs.Total liabilities for 2014–15 are estimated at $29.7 million. The largest liability item is accrued employee entitlements.

193


3.2.3 Budgeted financial statements tablesTable 3.2.1: Comprehensive income statement (showing net cost of services) (for the period ended 30 June)


194


2013-14 2014-15 2015-16 2016-17 2017-18$'000 $'000 $'000 $'000 $'000

EXPENSESEmployee benefits 75,047 74,684 72,904 71,599 72,000 Suppliers 41,438 41,325 38,951 36,255 36,226 Depreciation and amortisation 8,095 10,233 10,601 7,002 7,969 Total expenses 124,580 126,242 122,456 114,856 116,195 LESS: OWN-SOURCE INCOMERevenueSale of goods and rendering of services 3,400 4,350 2,900 1,050 690 Other revenue 300 300 300 300 300 Total revenue 3,700 4,650 3,200 1,350 990 GainsResources free of charge 100 100 100 100 100 Total gains 100 100 100 100 100 Total own-source income 3,800 4,750 3,300 1,450 1,090 Net cost of services 120,780 121,492 119,156 113,406 115,105 Revenue from Government 112,685 111,259 108,555 106,404 107,136 Surplus (Deficit) attributable to the Australian Government (8,095) (10,233) (10,601) (7,002) (7,969)

Total comprehensive income attributable to the Australian Government (8,095) (10,233) (10,601) (7,002) (7,969)


$'000 $'000 $'000 $'000 $'000Total comprehensive income

(loss) excluding depreciation/amortisation expenses previouslyfunded through revenueappropriations - - - - -

less depreciation/amortisation expensespreviously funded through revenueappropriations 8,095 10,233 10,601 7,002 7,969

Total comprehensive income(loss) - as per the Statement ofComprehensive Income (8,095) (10,233) (10,601) (7,002) (7,969)


Table 3.2.2: Budgeted departmental balance sheet (as at 30 June)



195


2013-14 2014-15 2015-16 2016-17 2017-18$'000 $'000 $'000 $'000 $'000


Cash and equivalents 2,856 2,856 2,856 2,856 2,856 Trade and other receivables 69,167 55,643 49,207 46,931 46,531


Land and buildings 11,127 8,819 7,703 9,150 8,121 Property, plant and equipment 3,002 3,845 3,217 2,548 2,076 Intangibles 8,065 12,596 11,069 9,680 7,660 Other non-financial assets 1,502 1,502 1,502 1,502 1,502

Total non-financial assets 23,696 26,762 23,491 22,880 19,359 Total assets 95,719 85,261 75,554 72,667 68,746 LIABILITIESProvisions

Employee provisions 18,438 17,800 17,450 17,175 17,300 Other provisions 8,202 6,202 3,910 2,910 2,910

Total provisions 26,640 24,002 21,360 20,085 20,210 Payables

Suppliers 7,664 5,745 4,951 5,950 5,425 Total payables 7,664 5,745 4,951 5,950 5,425 Total liabilities 34,304 29,747 26,311 26,035 25,635 Net assets 61,415 55,514 49,243 46,632 43,111 EQUITY*Parent entity interest

Contributed equity 88,498 92,830 97,160 101,551 105,999 Reserves 1,039 1,039 1,039 1,039 1,039 Retained surpluses or

(accumulated deficits) (28,122) (38,355) (48,956) (55,958) (63,927) Total parent entity interest 61,415 55,514 49,243 46,632 43,111 Total equity 61,415 55,514 49,243 46,632 43,111


Table 3.2.3: Departmental statement of changes in equity — summary of movement (Budget year 2014–15)


196


reserve capital$'000 $'000 $'000 $'000 $'000


previous period (28,122) 1,039 - 88,498 61,415 Adjusted opening balance (28,122) 1,039 - 88,498 61,415 Income and expense

Surplus (deficit) for the period (10,233) - - - (10,233)

Total income and expenserecognised directly in equity (10,233) - - - (10,233)

Transactions with ownersContribution by owners

Appropriation (equity injection) - - - - - Departmental Capital Budget (DCBs) - - - 4,332 4,332

Sub-total transactions with owners - - - 4,332 4,332 Estimated closing balance

as at 30 June 2015 (38,355) 1,039 - 92,830 55,514


Table 3.2.4: Budgeted departmental statement of cash flows(for the period ended 30 June)

.

197


2013-14 2014-15 2015-16 2016-17 2017-18$'000 $'000 $'000 $'000 $'000


Goods and services 3,600 4,350 2,900 1,050 690 Appropriations 130,914 124,783 114,991 108,680 107,536 Other 300 300 300 300 300

Total cash received 134,814 129,433 118,191 110,030 108,526 Cash used

Employees 75,107 75,322 73,254 71,874 71,875 Suppliers 53,802 43,144 39,645 35,156 36,651 Other 1,301 2,000 2,000 1,000 -

Total cash used 130,210 120,466 114,899 108,030 108,526 Net cash from (or used by)

operating activities 4,604 8,967 3,292 2,000 - INVESTING ACTIVITIESCash received

Other - - - - - Total cash received - - - - -


Table 3.2.4: Budgeted departmental statement of cash flows (for the period ended 30 June) (continued)

Prepared on Australian Accounting Standards basis

198


2013-14 2014-15 2015-16 2016-17 2017-18$'000 $'000 $'000 $'000 $'000

Cash usedPurchase of property, plant

and equipment 8,063 13,299 7,622 6,391 4,448 Total cash used 8,063 13,299 7,622 6,391 4,448 Net cash from (or used by)

investing activities (8,063) (13,299) (7,622) (6,391) (4,448) FINANCING ACTIVITIESCash received

Appropriations - contributed equity 3,459 4,332 4,330 4,391 4,448 Total cash received 3,459 4,332 4,330 4,391 4,448 Cash used


financing activities 3,459 4,332 4,330 4,391 4,448 Net increase (or decrease)

in cash held - - - - - Cash at the beginning of

the reporting period 2,856 2,856 2,856 2,856 2,856 Cash at the end of the

reporting period 2,856 2,856 2,856 2,856 2,856


Table 3.2.5: Departmental capital budget statement

1 Does not include annual finance lease costs. Include purchase from current and previousyears' Departmental Capital Budgets (DCBs).2 Includes the following sources of funding: - current Bill 1 and prior year Act 1/3/5 appropriations (excluding amounts from the DCB). - donations and contributions - gifts - internally developed assets - s31 relevant agency receipts (for FMA agencies only) - proceeds from the sale of assets


199


2013-14 2014-15 2015-16 2016-17 2017-18$'000 $'000 $'000 $'000 $'000

NEW CAPITAL APPROPRIATIONSCapital budget - Bill 1 (DCB) 3,459 4,332 4,330 4,391 4,448

Total new capital appropriations 3,459 4,332 4,330 4,391 4,448Provided for:

Purchase of non-financial assets 3,459 4,332 4,330 4,391 4,448Total Items 3,459 4,332 4,330 4,391 4,448

PURCHASE OF NON-FINANCIALASSETSFunded by capital appropriation - DCB 1 8,063 11,299 4,330 4,391 4,448Funded internally from

departmental resources 2 - 2,000 3,000 2,000 -TOTAL 8,063 13,299 7,330 6,391 4,448RECONCILIATION OF CASH



acquire assets 8,063 13,299 7,330 6,391 4,448


Table 3.2.6: Statement of non-financial asset movements – departmental


200

Infrastructure,

Land and Plant &

Buildings Equipment Intangibles Total$'000 $'000 $'000 $'000

as at 1 July 2014Gross book value 36,476 4,881 21,014 62,371 Accumulated depreciation/amortisation (25,349) (1,879) (12,949) (40,177)Opening net book balance 11,127 3,002 8,065 22,194 CAPITAL ASSET ADDITIONSEstimated expenditure on new or replacement assetsby purchase or internally developed 2,994 1,503 8,802 13,299 Sub-total 2,994 1,503 8,802 13,299 Other MovementsDepreciation/amortisation expense (5,302) (660) (4,271) (10,233)as at 30 June 2015Gross book value 39,470 6,384 29,816 75,670 Accumulated depreciation/amortisation (30,651) (2,539) (17,220) (50,410)Closing net book balance 8,819 3,845 12,596 25,260


Table 3.2.7: Schedule of budgeted income and expenses administered on behalf of Government (for the period ended 30 June)


Table 3.2.8: Schedule of budgeted assets and liabilities administered on behalf of Government (as at 30 June)

Prepared on Australian Accounting Standards basis.201


2013-14 2014-15 2015-16 2016-17 2017-18$'000 $'000 $'000 $'000 $'000

INCOME ADMINISTERED ONBEHALF OF GOVERNMENT

RevenueNon-taxation

Other sources of non-taxationrevenues 300 300 300 300 300

Total non-taxation 300 300 300 300 300 Total revenues administered

on behalf of Government 300 300 300 300 300 Total income administered

on behalf of Government 300 300 300 300 300

EXPENSES ADMINISTERED ONBEHALF OF GOVERNMENTOther expenses - - - - -

Total expenses administeredon behalf of Government - - - - -


2013-14 2014-15 2015-16 2016-17 2017-18$'000 $'000 $'000 $'000 $'000

ASSETS ADMINISTERED ON BEHALF OF GOVERNMENT

Financial assetsReceivables 919 919 919 919 919 Other f inancial assets - - - - -

Total financial assets 919 919 919 919 919 Total assets administered

on behalf of Government 919 919 919 919 919

LIABILITIES ADMINISTERED ON BEHALF OF GOVERNMENT

PayablesOther payables - - - - -

Total payables - - - - -

Total liabilities administeredon behalf of Government - - - - -


Table 3.2.9: Schedule of budgeted administered cash flows(for the period ended 30 June)


202


2013-14 2014-15 2015-16 2016-17 2017-18$'000 $'000 $'000 $'000 $'000


Other 300 300 300 300 300 Total cash received 300 300 300 300 300 Cash used


operating activities 300 300 300 300 300 INVESTING ACTIVITIESCash received



investing activities - - - - -




financing activities - - - - -

Net increase (or decrease) in cash held 300 300 300 300 300 Cash from Official Public Account for:

- appropriations - - - - - - special accounts - - - - -

Cash to Off icial Public Account for:- appropriations - - - - - - special accounts - - - - - - other (300) (300) (300) (300) (300)

Cash at end of reporting period - - - - -


Table 3.2.10: Schedule of non-financial asset movements - administered The Fair Work Ombudsman has no administered non-financial assets.3.2.4 Notes to the Financial StatementsAccounting PolicyThe budgeted financial statements have been prepared in accordance with the requirements of the Finance Minister’s Orders issued by the Minister for Finance.The statements have been prepared: on an accrual accounting basis in compliance with Australian Accounting Standards and Australian


Agency Revenue from governmentRevenue from government represents the purchase of outputs from the Fair Work Ombudsman by the government. Agency Revenue – Own Source IncomeRevenue from the sale of goods and services is recognised upon the delivery of the goods or services to customers.Agency Expenses – Employee BenefitsThis item represents payments made and net increases or decreases in entitlements owed to employees for their services provided in the financial year.Agency Expenses – Suppliers This item represents payments to suppliers for goods and services.Agency Expenses – Depreciation and AmortisationProperty, plant, equipment and intangible assets are written-off to their estimated residual values over their estimated useful lives to the Fair Work Ombudsman using, in all cases, the straight-line method of depreciation.Computing equipment assets are depreciated over their useful lives which are between three and seven years. Office machines are depreciated over five years (20 per cent). Leasehold improvements are amortised on a straight-line basis over the lesser of the estimated useful life of the improvements or the unexpired period of the lease. Forward estimates of depreciation expense are made using forecasts of net capital acquisition requirements over the forward years.

203


Agency Assets – Financial Assets – CashCash represents notes and coins held and deposits at call with a bank or financial institution.Agency Assets – Financial Assets – Receivables Receivables represent amounts owing to the Fair Work Ombudsman for goods and services it has provided to external parties and cash reserves held in the Official Public Account.Agency Assets – Non-Financial AssetsThese items represent future economic benefits that the Fair Work Ombudsman will consume in producing outputs. Apart from re-valued assets, the reported value represents the purchase price paid less depreciation incurred to date in using that asset.Infrastructure, plant and equipment is initially brought to account at cost, except for purchases costing less than $2,000, which are expensed in the year of acquisition (other than where they form part of a group of similar items which are significant in total).Internally developed or purchased computer software, disclosed in the Departmental Balance Sheet as intangibles, is expensed in the year of acquisition except for purchased software costing more than $2,000 or for internally developed software costing more than $200,000 which are capitalised at cost.Land and buildings (leasehold improvements) are initially brought to account at cost, except for purchases costing less than $2,000, which are expensed in the year of acquisition. The Fair Work Ombudsman annually reassesses and adjusts the values of land and buildings (leasehold improvements), infrastructure, plant and equipment.Agency Liabilities – Provisions – Employees Provision has been made for the Fair Work Ombudsman’s liability for employee entitlements arising from services rendered by employees to balance date. This liability encompasses unpaid wages and salaries, annual and long service leave. No provision is made for sick leave.The liability for leave expected to be settled within 12 months has been measured at the nominal amount.Other employee entitlements payable later than one year have been estimated at the present value of the expected future cash outflows in relation to those entitlements. Attrition rates and pay rises through promotion and wage/salary agreements have been taken into account in calculating the provision for employee entitlements.Agency Liabilities – Payables – SuppliersThis item mainly comprises trade creditors and operating lease rentals.

204


Administered Non-Taxation Revenue – Other SourcesThis revenue comprises court awarded penalties relating to breaches of the Fair Work Act 2009 and other relevant legislation. The penalties are administered by the Fair Work Ombudsman on behalf of government.Administered Assets – Financial Assets – Receivables These assets comprise receivables relating to court awarded penalties for breaches of the Fair Work Act 2009 and other relevant legislation. The penalties are administered by the Fair Work Ombudsman on behalf of government. Administered Cash FlowsThese cash flows relate to court awarded penalties for breaches of the Fair Work Act 2009 and other relevant legislation. The penalties are administered by the Fair Work Ombudsman on behalf of government and are paid directly into the Consolidated Revenue Fund.

205

Safe Work Australia


208

Safe Work Australia Budget Statements 2014–15

SAFE WORK AUSTRALIASection 1: Agency Overview and Resources...............................2131.1 Strategic Direction Statement.......................................................2131.2 Agency Resource Statement.........................................................2151.3 Budget Measures..........................................................................216Section 2: Outcomes and Planned Performance.........................2172.1 Outcomes and Performance Information......................................217Section 3: Explanatory Tables and Budgeted Financial Statements..............................................................................2223.1 Explanatory Tables.......................................................................2223.2 Budgeted Financial Statements....................................................223

210


SAFE WORK AUSTRALIA



Safe Work Australia was established by the Safe Work Australia Act 2008 (the Act). The agency operates under the Commonwealth Government's accountability and governance frameworks.Safe Work Australia is the body leading the development of national policy to improve work health and safety and workers’ compensation across Australia. It is responsible for developing and coordinating national policy and strategies; assisting with the implementation of model work health and safety legislation and reforming the legislative framework; undertaking and publishing research; and collecting, analysing and reporting data. In doing this Safe Work Australia works collaboratively with regulators, industry and worker associations and the community, to realise the national vision of healthy, safe and productive working lives.The establishment of Safe Work Australia was provided for in the Intergovernmental Agreement for Regulatory and Operational Reform in Occupational Health and Safety (IGA), agreed by the Council of Australian Governments (COAG) on 3 July 2008. The IGA will be reviewed by the Department of Employment during 2014–15.The agency is jointly funded by the Commonwealth, state and territory governments. This funding arrangement promotes collaboration with jurisdictions on policy development, implementation, compliance and enforcement, and communication activities.Safe Work Australia has 15 Members, including an independent Chair, nine Members representing the Commonwealth and each state and territory, two Members representing the interests of employers, two representing the interests of employees, and the Chief Executive Officer of Safe Work Australia (CEO).The CEO manages the agency under section 45 of the Act and in accordance with the Financial Management and Accountability Act 1997.Together, the Safe Work Australia Members and the agency will work to achieve: significant and continued reductions in the incidence of work-

related death, injury and illness through

212


– reduced exposure to work-related hazards causing injury and illness

– improved quality of workplace controls– an improved work health and safety framework, increased work

health and safety awareness and skills, and an evidence base which informs policy and practice.

improved outcomes for injured workers and their employers through more effective, efficient, clearly understood and sustainable workers’ compensation arrangements.

The focus of Safe Work Australia during 2014–15 will be on: monitoring, reviewing and evaluating the model work health and

safety (WHS) laws to improve operational efficiency, remove unnecessary regulation and improve safety outcomes

improving the consistency of explosives legislation across Australia facilitating simple, practical guidance to aid compliance,

particularly for small business collecting, maintaining, improving and reporting on national work

health and safety and workers’ compensation data identifying priority issues and undertaking and disseminating

research, including on emerging issues national coordination and monitoring of the implementation of the

Australian Work Health and Safety Strategy 2012-2022 (the Australian Strategy)

promoting consistent messages on work health and safety identifying opportunities and developing proposals for

improvements in workers’ compensation arrangements, and liaising with other countries or international organisations as

appropriate on matters relating to work health and safety and workers’ compensation activities.

213



Table 1.1 shows the total resources from all sources. The table summarises how resources will be applied by outcome and by departmental classification.Table 1.1: Safe Work Australia Resource Statement — BudgetEstimates for 2014-15 as at Budget May 2014

1 Appropriation Bill (No.1) 2014-152 Includes an amount of $0.225m in 2014-15 for the Departmental Capital Budget (refer to table 3.2.5 forfurther details). For accounting purposes this amount has been designated as 'contributions by owners'.3 Estimated opening balance for special accounts (less ‘Special Public Money’ held in accounts likeOther Trust Monies accounts (OTM), Services for other Government and Non-agency Bodies accounts (SOG), or Services for Other Entities and Trust Moneys Special accounts (SOETM)). For further information on special accounts see Table 3.1.2. "4 Appropriation receipts from Safe Work Australia annual and special appropriations for 2012-13 included above."


214



2014-15 2014-15 2014-15 2013-14$'000 $'000 $'000 $'000


Departmental appropriationDepartmental appropriation2 - 9,832 9,832 9,506Total - 9,832 9,832 9,506

Total ordinary annual services A - 9,832 9,832 9,506Total available annual

appropriations - 9,832 9,832 9,506Total appropriations excluding

Special Accounts - 9,832 9,832 9,506Special Accounts

Opening balance3 - 10,311 10,311 9,977Appropriation receipts4 - 9,832 9,832 9,506Non-appropriation receipts to - Special Accounts - 10,996 10,996 10,860

Total Special Account D - 31,139 31,139 30,343Total resourcingA+B+C+D - 40,971 40,971 39,849Less appropriations drawn from

annual or special appropriations aboveand credited to special accountsand/or CAC Act bodies through annual appropriations - (9,832) (9,832) (9,506)

Total net resourcing for Safe Work Australia - 31,139 31,139 30,343


1.3 BUDGET MEASURES

Table 1.2: Agency 2014–15 Budget measuresPart 2: MYEFO measures not previously reported in a portfolio statement

1 This was a measure announced in the 2013 Economic Statement measure but not previously reported in a portfolio statement.


215

Programme 2013-14 2014-15 2015-16 2016-17 2017-18$'000 $'000 $'000 $'000 $'000

Measures Reforms to the APS management and efficient procurement of agency softw are1 1

Departmental expenses (18) (18) (18) - - Total (18) (18) (18) - - Total measures

Departmental (18) (18) (18) - - Total (18) (18) (18) - -




Government outcomes are the intended results, impacts or consequences of actions by the Government on the Australian community. Commonwealth programmes are the primary vehicle by which Government agencies achieve the intended results of their outcome statements. Agencies are required to identify the programmes which contribute to Government outcomes over the Budget and forward years.Each outcome is described below together with its related programmes, specifying the performance indicators and targets used to assess and monitor the performance of Safe Work Australia in achieving Government outcomes.

Outcome 1: Healthier, safer and more productive workplaces through improvements to Australian work health and safety and workers’ compensation arrangements

Outcome 1 StrategySafe Work Australia works with representatives of the Commonwealth, state and territory governments, employers and employees so that: the Australian Strategy, which provides a national framework to

drive improvements in work health and safety and facilitate collaboration, is implemented.

The Strategy targets are to be achieved by 2022. Safe Work Australia measures and reports on progress towards these targets annually. The targets are:o a reduction of at least 20 per cent in the number of worker

fatalities due to injuryo a reduction of at least 30 per cent in the incidence rate of

claims resulting in one or more weeks off work, ando a reduction of at least 30 per cent in the incidence rate of

claims for musculoskeletal disorders resulting in one or more weeks off work.

Australia has improved work health and safety laws providing a consistent, equitable and high level of protection to all workers, while ensuring practicability for small business and individual workers

the consistency of explosives legislation across Australia is improved

216


the national work health and safety research, evaluation and data programmes support evidence-informed policy and practice

community awareness and knowledge of work health and safety is increased

assistance is provided to other agencies to promote consistent and improved approaches to managing health and safety hazards and risks, and

opportunities for improvements in workers’ compensation arrangements are identified and proposals developed.

217


Outcome 1 Expense StatementTable 2.1 provides an overview of the total expenses for outcome 1.Table 2.1: Budgeted Expenses for Outcome 1

1 Departmental Appropriation combines "Ordinary annual services (Appropriation Bill No. 1)" and "Revenue from independent sources (s31)".2 Expenses not requiring appropriation in the Budget year is made up of Depreciation Expense, Amortisation Expense, and Audit Fees.

218



$'000 $'000Programme 1: Reform of and improvements to Australian work health and safety and workers' compensation arrangementsDepartmental expenses

Departmental appropriation 1 9,356 9,607Special Accounts 10,860 10,996

Expenses not requiring appropriation in the Budget year 2 599 544Total for Programme 1.1 20,815 21,147

Outcome 1 Totals by appropriation typeDepartmental expenses

Departmental appropriation 1 9,356 9,607Special Accounts 10,860 10,996

Expenses not requiring appropriation in the Budget year 2 599 544Total expenses for Outcome 1 20,815 21,147


Outcome 1: Healthier, safer and more productive workplaces through improvements to Australian w ork health and safety and w orkers’ compensation arrangements.



Programme 1: Reform of and improvements to Australian work health and safety and workers’ compensation arrangements

Programme 1 ObjectiveSafe Work Australia has an important national role to achieve significant and continual reductions in the incidence of work-related death, injury and illness and to improve outcomes for injured workers and their employers.To be able to meet its objectives Safe Work Australia works collaboratively with employees, employers, their representatives and regulators to achieve healthy, safe and productive working lives for all Australians.The Act prescribes that Safe Work Australia performs its functions in accordance with its strategic and operational plans. These plans are endorsed by Safe Work Australia Members and approved by Commonwealth, state and territory work health and safety ministers.Programme 1 ExpensesThe work of the agency continues to focus on the objectives of Programme 1 and as prescribed by legislation. The agency has not identified any significant trends or variances over the forward years.Table 2.1.1 Programme 1 expenses

1 Expenses not requiring appropriation in the Budget year is made up of Depreciation Expense, Amortisation Expense and Audit Fees.

Programme 1. Deliverables The deliverables for Safe Work Australia are highlighted in its annual operational plan and include: facilitating simple, practical guidance to aid compliance,

particularly for small business and individual employees

219

Estimated Budget Forw ard Forw ard Forw ardactual estimate estimate estimate

('000) $'000 $'000 $'000 $'000 $'000Special Account Expenses:

Safe Work Australia Special Account 9,873 9,996 10,095 10,341 10,408 Annual departmental expenses:

Ordinary annual services (AppropriationBill No. 1) 9,356 9,607 9,700 9,967 10,408

Programme supportExpenses not requiring appropriation in

the Budget year 1 599 544 372 317 310 Total Programme expenses 19,828 20,147 20,167 20,625 21,126


monitoring, reviewing and evaluating the model WHS laws to improve operational efficiency, remove unnecessary regulation and improve safety outcomes

improving the consistency of explosives legislation across Australia collecting, maintaining, improving and reporting on national work

health and safety and workers’ compensation data identifying priority issues and undertaking and disseminating

research, including on emerging issues national coordination and monitoring of the implementation of the

Australian Strategy promoting consistent messages on work health and safety improving consistency in workers’ compensation arrangements,

and liaising with other countries or international organisations as

appropriate on matters relating to work health and safety and workers’ compensation activities.

Programme 1 Key Performance Indicators The key performance indicators are framed around the deliverables in the operational plan. The contribution of these deliverables to the achievement of the strategies and outcome is measured through systematic review and evaluation. Safe Work Australia measures and reports on progress towards the Australian Strategy targets annually.Table 2.1.1A Programme 1 key performance indicatorsKey performance indicatorsQuality 2014–15 targetThe work health and safety framework continues to be developed, implemented and reviewed in accordance with COAG requirements.

COAG requirements are met.

Safe Work Australia is meeting the expectations of the Chair of Safe Work Australia in terms of quality, effectiveness and timeliness in achieving the deliverables of its operational plan.

Through a survey, the Chair rates the performance of the agency as very good or above in meeting expectations.

Safe Work Australia is meeting the expectations of the Members in terms of quality, effectiveness and timeliness in achieving the deliverables of its operational plan.

Through a survey 80% of Members agree the agency is achieving the deliverables of its operational plan.

220


Section 3: Explanatory Tables and Budgeted Financial StatementsSection 3 presents explanatory tables and budgeted financial statements which provide a comprehensive snapshot of agency finances for the 2014–15 budget year. It explains how budget plans are incorporated into the financial statements and provides further details of the reconciliation between appropriations and programme expenses, movements in administered funds, special accounts and Australian Government indigenous expenditure.


3.1.1 Movement of administered funds between yearsSafe Work Australia has no administered funds. For this reason Table 3.1.1 is not presented. 3.1.2 Special AccountsSpecial Accounts provide a means to set aside and record amounts used for specified purposes. Special Accounts can be created by a Finance Minister’s Determination under the FMA Act or under separate enabling legislation. Table 3.1.2 shows the expected additions (receipts) and reductions (payments) for each account used by Safe Work Australia.Table 3.1.2: Estimates of Special Account Flows and Balances

(D) = Departmental

3.1.3 Australian Government Indigenous ExpenditureSafe Work Australia has no Australian Government Indigenous Expenditure to report. For this reason Table 3.1.3 is not presented.

221


Outcome $'000 $'000 $'000 $'000 $'000Safe Work Australia Special Account (D)

1 10,311 20,828 (20,528) - 10,611

9,977 20,366 (20,032) - 10,311

Total Special Accounts 2014-15 Budget estimate 10,311 20,828 (20,528) - 10,611

Total Special Accounts2013-14 estimated actual 9,977 20,366 (20,032) - 10,311



3.2.1 Differences in agency resourcing and financial statementsThe agency receives funds from states and territories and matched appropriation funding from the Commonwealth as provided for in the Intergovernmental Agreement.3.2.2 Analysis of budgeted financial statementsThe agency is not expecting any major changes in its operations from a financial perspective. Funding arrangements are provided for in the IGA.3.2.3 Budgeted financial statements tablesTable 3.2.1 Comprehensive Income Statement (Showing Net Cost of Services) for the period ended 30 June

222


2013-14 2014-15 2015-16 2016-17 2017-18$'000 $'000 $'000 $'000 $'000

EXPENSESEmployee benefits 12,553 12,810 13,003 13,417 13,807Suppliers 6,636 6,753 6,752 6,851 6,969Grants 100 100 100 100 100Depreciation and amortisation 539 484 312 257 250Total expenses 19,828 20,147 20,167 20,625 21,126LESS: OWN-SOURCE INCOMEOwn-source revenueSale of goods and rendering of services 9,873 9,996 10,095 10,341 10,408Total own-source revenue 9,873 9,996 10,095 10,341 10,408GainsOther 60 60 60 60 60Total gains 60 60 60 60 60Total own-source income 9,933 10,056 10,155 10,401 10,468Net cost of (contribution by)


the Australian Government (539) (484) (312) (257) (250)Total comprehensive income (loss)

attributable to the Australian Government (539) (484) (312) (257) (250)


Table 3.2.1 Comprehensive Income Statement (Showing Net Cost of Services) for the period ended 30 June (continued)


Prepared on Australian Accounting Standards basis

223



(loss) excluding depreciation/amortisationexpenses previously funded throughrevenue appropriations. (1,078) (968) (624) (514) (500)

less depreciation/amortisation expensespreviously funded through revenue (539) (484) (312) (257) (250)appropriations1

Total Comprehensive Income (loss) - as per the Statement ofComprehensive Income (539) (484) (312) (257) (250)


Table 3.2.2: Budgeted Departmental Balance Sheet(as at 30 June)



224


2013-14 2014-15 2015-16 2016-17 2017-18$'000 $'000 $'000 $'000 $'000



Total financial assets 11,040 11,340 11,640 11,640 11,640Non-financial assets

Land and buildings 901 534 293 223 203Property, plant and equipment 58 121 95 114 76Intangibles 34 79 108 137 187Other non-financial assets 135 135 135 135 135

Total non-financial assets 1,128 869 631 609 601Total assets 12,168 12,209 12,271 12,249 12,241LIABILITIESPayables

Suppliers 1,927 1,927 1,927 1,927 1,927Total payables 1,927 1,927 1,927 1,927 1,927Provisions

Employee provisions 4,034 4,334 4,634 4,634 4,634Total provisions 4,034 4,334 4,634 4,634 4,634Total liabilities 5,961 6,261 6,561 6,561 6,561Net assets 6,207 5,948 5,710 5,688 5,680EQUITY*


(accumulated deficit) 1,307 823 511 254 4Total Equity 6,207 5,948 5,710 5,688 5,680


Table 3.2.3: Departmental Statement of Changes in Equity — Summary of Movement (Budget Year 2014-15)


225


reserve capital$'000 $'000 $'000 $'000 $'000


previous period 1,307 859 4,041 6,207Adjusted opening balance 1,307 859 - 4,041 6,207Comprehensive income

Surplus (def icit) for the period (484) (484)

Total comprehensive income (484) - - - (484)of w hich:

Attributable to the Australian Government (484) (484)Transactions with owners

Contributions by ownersDepartmental Capital Budget (DCBs) 225 225

Sub-total transactions with owners - - - 225 225Transfers betw een equity

components - - - - -Estimated closing balance

as at 30 June 2015 823 859 - 4,266 5,948Closing balance attributable to the

Australian Government 823 859 - 4,266 5,948


Table 3.2.4: Budgeted Departmental Statement of Cash Flows(for the period ended 30 June)

226


2013-14 2014-15 2015-16 2016-17 2017-18$'000 $'000 $'000 $'000 $'000


Appropriations 9,356 9,607 9,700 9,967 10,408Sale of goods and rendering of services 10,860 10,996 11,105 11,375 11,449


Employees 12,553 12,810 13,003 13,417 13,807Suppliers 6,636 6,753 6,752 6,851 6,849Net GST paid 663 687 687 695 695Grants 100 100 100 100 100


operating activities 264 253 263 279 406INVESTING ACTIVITIESCash received

Proceeds from sales of property,plant and equipment

Total cash received - - - - -


Table 3.2.4: Budgeted Departmental Statement of Cash Flows(for the period ended 30 June) (continued)


227


2013-14 2014-15 2015-16 2016-17 2017-18$'000 $'000 $'000 $'000 $'000

Cash usedPurchase of property, plant

and equipment 150 225 74 235 242Total cash used 150 225 74 235 242Net cash from (used by)

investing activities (150) (225) (74) (235) (242)FINANCING ACTIVITIESCash received

Contributed equity 150 225 74 235 242Total cash received 150 225 74 235 242Cash used

Other 339 253 263 279 406Total cash used 339 253 263 279 406Net cash from (used by)

financing activities (189) (28) (189) (44) (164)Net increase (decrease)

in cash held (75) - - - -Cash and cash equivalents at the





1 Does not include annual finance lease costs. Include purchase from current and previousyears' Departmental Capital Budgets (DCBs).


228


2013-14 2014-15 2015-16 2016-17 2017-18$'000 $'000 $'000 $'000 $'000

NEW CAPITAL APPROPRIATIONSCapital budget - Bill 1 (DCB) 150 225 74 235 242

Total new capital appropriations 150 225 74 235 242

Provided for:Purchase of non-financial assets 150 225 74 235 242

Total Items 150 225 74 235 242PURCHASE OF NON-FINANCIAL

ASSETSFunded by capital appropriation - DCB 1 150 225 74 235 242

TOTAL 150 225 74 235 242

RECONCILIATION OF CASHUSED TO ACQUIRE ASSETSTO ASSET MOVEMENT TABLE

Total purchases 150 225 74 235 242Total cash used to

acquire assets 150 225 74 235 242


Table 3.2.6: Statement of Asset Movements (2014-15)

1 "Appropriation ordinary annual services" refers to funding provided through Appropriation Bill (No.1) 2014-15 for depreciation / amortisation expenses, DCBs or other operational expenses.Prepared on Australian Accounting Standards basis

Table 3.2.7: Schedule of Budgeted Income and Expenses Administered on Behalf of Government (for the period ended 30 June)Safe Work Australia has no income and expenses administered on behalf of government. For this reason Table 3.2.7 is not presented.Table 3.2.8 Schedule of budgeted assets and liabilities administered on Behalf of Government (as at 30 June)Safe Work Australia has no administered assets and liabilities. For this reason Table 3.2.8 is not presented.Table 3.2.9: Schedule of Budgeted Administered Cash Flows (for the period ended 30 June)Safe Work Australia has no administered cash flows. For this reason Table 3.2.9 is not presented.3.2.10 Schedule of Administered Capital BudgetSafe Work Australia has no administered capital purchases. For this reason Table 3.2.10 is not presented.3.2.11 Schedule of Asset Movements—Administered Safe Work Australia has no administered non-financial assets. For this reason Table 3.2.11 is not presented.

229

Buildings Other property, Computer Totalplant and softw are and


As at 1 July 2014Gross book value 1,256 120 328 1,704Accumulated depreciation/amortisation

and impairment (355) (62) (294) (711)Opening net book balance 901 58 34 993CAPITAL ASSET ADDITIONSEstimated expenditure on


annual services 1 - 119 106 225Total additions - 119 106 225Other movementsDepreciation/amortisation expense (367) (56) (61) (484)Total other movements (367) (56) (61) (484)As at 30 June 2015Gross book value 1,256 239 434 1,929Accumulated depreciation/amortisation

and impairment (722) (118) (355) (1,195)Closing net book balance 534 121 79 734


230

Workplace Gender Equality Agency


WGEA Budget Statements 2014–15

WORKPLACE GENDER EQUALITY AGENCY

Section 1: Agency Overview and Resources...............................2371.1 Strategic Direction Statement.......................................................2371.2 Agency Resource Statement.........................................................2381.3 Budget Measures..........................................................................239Section 2: Outcomes and Planned Performance.........................2412.1 Outcomes and Performance Information......................................241Section 3: Explanatory Tables and Budgeted Financial Statements..............................................................................2473.1 Explanatory Tables.......................................................................2473.2 Budgeted Financial Statements....................................................248

234


WORKPLACE GENDER EQUALITY AGENCY



The Workplace Gender Equality Agency, established under the Workplace Gender Equality Act 2012 (Act), is charged with promoting and improving gender equality in Australian workplaces. The Agency’s vision is for women and men to be equally represented, valued and rewarded.Non-public sector employers with 100 or more employees (relevant employers) are required to report to the Agency annually. From the 2013–14 reporting period, relevant employers must report against standardised categories described as gender equality indicators (GEIs).This reporting data will underpin the following initiatives to be undertaken this year which are directed towards promoting and improving workplace gender equality: the provision to each relevant employer of a confidential,

customised benchmark report which will enable the employer to identify areas for improvement, compare their gender performance to their peers and track progress over time

the publication of aggregated benchmark data on an interactive data centre on the Agency’s website

the publication of a detailed report of the reporting data collected by the Agency from relevant employers including explanatory and interpretative material.

The Agency offers a citation which recognises leading workplace gender equality practice, the WGEA Employer of Choice for Gender Equality citation. This citation replaces the previous citation, the Employer of Choice for Women citation. The new citation has been designed to align with the Act and reflect current thinking on what is leading practice in gender equality. The citation delivers significant advantage to successful applicants in enabling them to differentiate their employer brand and attract and retain top talent. The first successful applicants under the WGEA Employer of Choice for Gender Equality will be named this year.The Agency will deliver a comprehensive education programme, develop tools and resources, and drive change through innovative public awareness campaigns in key areas such as pay equity and flexible working.

236



Table 1.1 shows the total resources from all sources. The table summarises how resources will be applied by outcome and by administered and departmental classification.Table 1.1: WGEA Resource Statement—Budget Estimates for 2014–15 as at Budget May 2014

1 Appropriation Bill (No.1) 2014–152 Estimated adjusted balance carried forward from previous year3 s31 Relevant Agency receipts - estimate


237



2014-15 2014-15 2014-15 2013-14$'000 $'000 $'000 $'000


Departmental appropriationPrior year departmental appropriation2 1,804 - 1,804 2,761Departmental appropriation - 5,026 5,026 5,074s31 Relevant agency receipts3 - 300 300 500Total 1,804 5,326 7,130 8,335

Total ordinary annual services A 1,804 5,326 7,130 8,335Departmental non- operating

Equity injections - - - -Total - - - -

Total other services B - - - -Total available annual

appropriations 1,804 5,326 7,130 8,335Total appropriations excluding

Special Accounts 1,804 5,326 7,130 8,335Total resourcingA+B+C+D 1,804 5,326 7,130 8,335Less appropriations drawn from


Total net resourcing for WGEA 1,804 5,326 7,130 8,335


1.3 BUDGET MEASURES

Budget measures in Part 1 relating to WGEA are detailed in Budget Paper No. 2 and are summarised below. Table 1.2: Agency 2014–15 Budget measuresPart 1: Measures announced since the 2013–14 MYEFO


238

Programme 2013-14 2014-15 2015-16 2016-17 2017-18$'000 $'000 $'000 $'000 $'000



Departmental - (13) (26) (39) (40) Total - (13) (26) (39) (40)



1 This is a measure announced in 2013–14 Budget but not previously reported in a portfolio statement.2 This was a measure announced in the 2013 Economic Statement measure but not previously reported in a portfolio statement.


239

Programme 2013-14 2014-15 2015-16 2016-17 2017-18$'000 $'000 $'000 $'000 $'000

Expense Measures Public Services Efficiencies1 All

Departmental expenses (1) (3) (6) (8) - Total (1) (3) (6) (8) - Reforms to the APS management and efficient procurement of agency softw are2 All

Departmental expenses (1) (3) (6) (8) - Total (1) (3) (6) (8) - Efficiency Dividend - temporary increase in rate All

Departmental expenses - (51) (121) (189) (52) Total - (51) (121) (189) (52) Total measures

Departmental (1) (56) (133) (205) (52) Total (1) (56) (133) (205) (52)


Section 2: Outcomes and planned performance


Government outcomes are the intended results, impacts or consequences of actions by the government on the Australian community. Commonwealth programmes are the primary vehicle by which government agencies achieve the intended results of their outcome statements. Agencies are required to identify the programmes which contribute to government outcomes over the Budget and forward years.Each outcome is described below together with its related programmes, specifying the performance indicators and targets used to assess and monitor the performance of Workplace Gender Equality Agency in achieving government outcomes.

Outcome 1: Promote and improve gender equality in Australian workplaces including through the provision of advice and assistance to employers and the assessment and measurement of workplace gender data.

240


Outcome Expense StatementTable 2.1 provides an overview of the total expenses for outcome 1 by programme.Table 2.1: Budgeted Expenses for Outcome 1

1 Departmental Appropriation combines "Ordinary annual services (Appropriation Bill No. 1)" and "Revenue from independent sources (s31)".2 Expenses not requiring appropriation in the Budget year is made up of Depreciation Expense, Amortisation Expense.

241

Outcome 1: Promote and improve gender equality in 2013-14 2014-15Australian w orkplaces including through the provision Estimated Estimatedof advice and assistance to employers and the actual expensesassessment and measurement of w orkplace gender expensesdata. $'000 $'000Programme 1.1: Workplace Gender EqualityDepartmental expenses

Departmental appropriation 1 5,153 5,122Expenses not requiring appropriation in the Budget year 2 258 595

Total for Programme 1.1 5,411 5,717Outcome 1 Totals by appropriation typeDepartmental expenses

Departmental appropriation 1 5,153 5,122Expenses not requiring appropriation in the Budget year 2 258 595

Total expenses for Outcome 1 5,411 5,7172013-14 2014-15




Programme 1.1: Workplace Gender Equality

Programme ObjectiveThe objective of this programme is to improve gender equality in Australian workplaces. Gender equality refers to Australian women and men being offered the same opportunities in the workplace, including equal remuneration and the ability to balance paid work with caring and family responsibilities.The programme will focus on promoting and improving gender equality and outcomes for both women and men in the workplace through activities which aim to: remove barriers to the full and equal participation of women in the

workforce promote amongst employers the elimination of discrimination on

the basis of gender in relation to employment matters foster workplace consultation between employers and employees

on issues concerning gender equality in employment and in the workplace

improve the productivity and competiveness of Australian business through the advancement of gender equality in employment and in the workplace.

Key activities include: advising and assisting employers to promote and improve gender

equality in the workplace including providing advice and assistance on the collection and analysis of workplace data to underpin measures to improve gender equality outcomes

undertaking research, educational and other programmes designed to promote and improve gender equality in the workplace

promoting and contributing to understanding and acceptance, and public discussion, of gender equality in the workplace

reviewing compliance with the Act by relevant employers.

242


Programme ExpensesProgramme expenses are expected to remain at a relatively constant level for forward years.Table 2.1.1 Programme 1.1 expenses

1 Expenses not requiring appropriation in the Budget year is made up of Depreciation Expense, Amortisation Expense.

Programme 1.1 Deliverables The Agency will support improved workplace gender equality by: assisting relevant employers to report to the Agency, through the

provision of:– a secure online web portal– education and guidance materials on reporting– telephone assistance.

educating employers on improving gender equality outcomes, through the provision of:– education and materials on interpreting workplace data and on

strategies for removing barriers to workplace gender equality– a set of benchmarks that will enable relevant employers to

consider and improve their workplace outcomes and practices over time and in relation to their peers.

promoting and contributing to understanding and acceptance, and public discussion, of gender equality in the Australian workplace, through– the recognition of good gender equality performance– contributions to public discussion of gender equality in the

workplace including through speeches and events– an improved digital presence.

using gender equality data to improve workplace gender equality, through– making publicly available aggregated benchmark data– the establishment of a database of reported data to inform the

Agency’s activities and advice to the Minister as required

243


actual estimate estimate estimate('000) $'000 $'000 $'000 $'000 $'000Programme support 5,153 5,122 5,121 5,118 5,172Expenses not requiring appropriation in

the Budget year 1 258 595 594 568 568Total Programme expenses 5,411 5,717 5,715 5,686 5,740


– the preparation of biennial reports to the Minister on overall progress achieved in relation to the GEIs, beginning with the two-year period ending on 31 May 2016.

fostering compliance with the reporting and transparency provisions of the Act, through– contacting relevant employers who are not meeting their

obligations and assisting them to become compliant– undertaking reviews of relevant employers’ compliance with the

Act– naming non-compliant employers in a report to the Minister or

by electronic or other means.Table 2.1.1A Programme 1.1 deliverables

Deliverables2013–14

Estimated actual

2014–14Budget

2015–16 Forward

year 1

2016–17Forward

year 2

2017–18Forward

year 3

Education– education participants 1 39 1130 1205 1260 1500

– educational resources available onAgency website 46 50 70 90 110

– benchmarks developed – 32 36 36 36

Understanding and acceptance and public discussion

– speeches and events delivered 51 52 52 52 52

– Employer of choice organisations – 95 105 115 126

Compliance– employers registered with the Agency as relevant employers 12,750 12,877 13,006 13,136 13,267

–employer reviews conducted – 10 11 12 13

Reporting by Agency– biennial report to the Minister – – – 1 -

Education participants include participants attending or accessing workshops, information sessions, teleconferences, webinars and e-learning modules in the Agency’s Learning Management System.

244


Programme 1.1 Key Performance Indicators percentage of women in leadership including governing board

members, key management personnel (KMP) and other managers percentage of employers conducting gender remuneration gap

analyses percentage of employers with a strategy or policy to support

employees with family and caring responsibilities number of visits to the Agency website.

Table 2.1.1B Programme 1.1 key performance indicators

Key performance indicators2013–14Revised budget

2014–15Budget

2015–16 Forward year

1

2016–17Forward

year 2

2017–18Forward

year 3

Percentage of women in leadership in relevant employers

- Governing board members 7 7.7 8.5 9.3 10.1

- KMP 7 7.35 7.7 8.1 8.5

-Other managers 35 36 37 38 39

Percentage of relevant employers that have conducted gender remuneration gap analyses 37 41 43 45 47

Percentage of relevant employers with a strategy or policy to support employees with family and caring responsibilities 3.4 3.47 3.54 3.61 3.68

Number of visits to Agency website 54,000 150,000 153,750 157,593 161,534

245




3.1.1 Movement of Administered Funds Between YearsWGEA does not have any administered funds. For this reason Table 3.1.1 is not presented.3.1.2 Special AccountsWGEA does not have any special accounts. For this reason Table 3.1.2 is not presented3.1.3 Australian Government Indigenous ExpenditureWGEA has no Australian Government Indigenous Expenditure. For this reason Table 3.1.3 is not presented.

246



3.2.1 Differences in Agency Resourcing and Financial StatementsTable 3.2.1 recognises the full year revenue for 2014–15 on the basis of accrual accounting principles.3.2.2The Workplace Gender Equality Agency is budgeting for an operating result equal to the unappropriated depreciation and amortisation expense in 2014–15 and the three forward years. Total revenues are estimated to be $5.1 million in 2014–15, and total expenses to be $5.7 million. Total assets for 2014–15 are estimated to be $3.8 million. The majority of the assets represent receivables (appropriations receivable) and intangibles. Total liabilities for 2014–15 are estimated to be $1.2 million. The largest liabilities are accrued employee entitlements.

247



248


Table 3.2.1 Comprehensive Income Statement (Showing Net Cost of Services) for the period ended 30 June



249


2013-14 2014-15 2015-16 2016-17 2017-18$'000 $'000 $'000 $'000 $'000

EXPENSESEmployee benefits 3,558 3,226 3,422 3,656 3,729Suppliers 1,585 1,886 1,689 1,452 1,433Depreciation and amortisation 258 595 594 568 568Finance costs 10 10 10 10 10Total expenses 5,411 5,717 5,715 5,686 5,740LESS: OWN-SOURCE INCOMEOwn-source revenueSale of goods and rendering of services - - - - -Other 50 66 100 100 100Total own-source revenue 50 66 100 100 100GainsOther 30 30 30 30 30Total gains 30 30 30 30 30Total own-source income 80 96 130 130 130Net cost of (contribution by)


the Australian Government (258) (595) (594) (568) (568)Total comprehensive income (loss)

attributable to the Australian Government (258) (595) (594) (568) (568)



(loss) excluding depreciation/amortisationexpenses previously funded throughrevenue appropriations. (516) (1,190) (1,188) (1,136) (1,136)

less depreciation/amortisation expensespreviously funded through revenueappropriations1 (258) (595) (594) (568) (568)

Total Comprehensive Income (loss) - as per the Statement ofComprehensive Income (258) (595) (594) (568) (568)



250


2013-14 2014-15 2015-16 2016-17 2017-18$'000 $'000 $'000 $'000 $'000




Land and buildings 858 705 552 399 246Property, plant and equipment 286 206 126 48 369Intangibles 1,473 1,301 939 601 263Other non-financial assets 12 12 12 12 12

Total non-financial assets 2,629 2,224 1,629 1,060 890 Assets held for sale

Total assets 4,433 3,838 3,441 3,068 2,704 LIABILITIESPayables

Suppliers 281 281 281 281 281Other payables 77 77 75 74 74

Total payables 358 358 356 355 355 Interest bearing liabilities

Other interest bearing liabilities - - - - - Total interest bearing liabilities - - - - - Provisions

Employee provisions 430 430 432 433 433Other provisions 393 393 393 393 393

Total provisions 823 823 825 826 826 Liabilities included in disposal

groups held for saleTotal liabilities 1,181 1,181 1,181 1,181 1,181 Net assets 3,252 2,657 2,260 1,887 1,523


Table 3.2.2: Budgeted Departmental Balance Sheet (as at 30 June) (continued)



251


2013-14 2014-15 2015-16 2016-17 2017-18$'000 $'000 $'000 $'000 $'000



(accumulated def icit) (447) (1,042) (1,636) (2,204) (2,772)Total parent entity interest 3,252 2,657 2,260 1,887 1,523Total Equity 3,252 2,657 2,260 1,887 1,523




252


reserve capital$'000 $'000 $'000 $'000 $'000


previous period (447) 40 - 3,659 3,252Adjusted opening balance (447) 40 - 3,659 3,252Comprehensive income

Surplus (deficit) for the period (595) - - - (595)Total comprehensive income (595) - - - (595)Estimated closing balance

as at 30 June 2015 (1,042) 40 - 3,659 2,657Closing balance attributable to the

Australian Government (1,042) 40 - 3,659 2,657



253


2013-14 2014-15 2015-16 2016-17 2017-18$'000 $'000 $'000 $'000 $'000


Appropriations 6,040 5,480 4,793 4,792 5,236Other 50 66 100 100 100


Employees 3,539 3,226 3,420 3,655 3,729Suppliers 1,555 1,856 1,659 1,422 1,403Other 19 - 2 1 -


operating activities 977 464 (188) (186) 204INVESTING ACTIVITIESCash received


Purchase of property, plant and equipment 966 200 9 9 408

Total cash used 966 200 9 9 408Net cash from (used by)

investing activities (966) (200) (9) (9) (408)


Table 3.2.4: Budgeted Departmental Statement of Cash Flows (for the period ended 30 June) (continued)


254


2013-14 2014-15 2015-16 2016-17 2017-18$'000 $'000 $'000 $'000 $'000


Contributed equity - - 197 195 204Total cash received - - 197 195 204Cash used


financing activities - - 197 195 204Net increase (decrease)

in cash held 11 264 - - -Cash and cash equivalents at the





1 Includes both current Bill 2 and prior Act 2/4/6 appropriations and special capital appropriations2 Does not include annual finance lease costs. Include purchase from current and previous years' Departmental Capital Budgets (DCBs).


255


2013-14 2014-15 2015-16 2016-17 2017-18$'000 $'000 $'000 $'000 $'000

NEW CAPITAL APPROPRIATIONSCapital budget - Bill 1 (DCB) - - 197 195 204Equity injections - Bill 2 - - - - -

Total new capital appropriations - - 197 195 204

Provided for:Purchase of non-f inancial assets - - 197 195 204

Total Items - - 197 195 204PURCHASE OF NON-FINANCIAL

ASSETSFunded by capital appropriations 1 903 - - - -Funded by capital appropriation - DCB 2 53 190 - - 398

TOTAL 956 190 - - 398RECONCILIATION OF CASH


Total purchases 956 190 - - 398Total cash used to

acquire assets 956 190 - - 398



1 "Appropriation ordinary annual services" refers to funding provided through Appropriation Bill (No.1) 2014-15 for depreciation / amortisation expenses, DCBs or other operational expenses.


Table 3.2.7: Schedule of Budgeted Income and Expenses Administered on Behalf of Government (for the period ended 30 June)WGEA has no income and expenses administered on behalf of government. For this reason Table 3.2.7 is not presented.Table 3.2.8 Schedule of budgeted assets and liabilities administered on behalf of Government (as at 30 June)WGEA has no administered assets and liabilities. For this reason Table 3.2.8 is not presented.Table 3.2.9: Schedule of Budgeted Administered Cash Flows (for the period ended 30 June)WGEA has no administered cash flows. For this reason Table 3.2.9 is not presented.3.2.10 Schedule of Administered Capital BudgetWGEA has no administered capital purchases. For this reason Table 3.2.10 is not presented.3.2.11 Schedule of Asset Movements—Administered WGEA has no administered non-financial assets. For this reason Table 3.2.11 is not presented.

256

Buildings Other property, Computer Totalplant and software and


As at 1 J uly 2014Gross book value 1,927 418 2,476 4,821Accumulated depreciation/amortisation

and impairment (1,069) (132) (1,003) (2,204)Opening net book balance 858 286 1,473 2,617CAPITAL ASSET ADDITIONSEstimated expenditure on


annual services 1 - - 190 190Total additions - - 190 190Other movementsDepreciation/amortisation expense (153) (80) (362) (595)Total other movements (153) (80) (362) (595)As at 30 J une 2015Gross book value 1,927 418 2,666 5,011Accumulated depreciation/amortisation

and impairment (1,222) (212) (1,365) (2,799)Closing net book balance 705 206 1,301 2,212


3.2.4 Notes to the Financial StatementsThe Agency budget statements have been prepared on an accrual accounting basis, having regard to the Statement of Accounting Concepts, and in accordance with: The Finance Minister’s Orders Australian Accounting Standards and Interpretations issued by the

Australian Accounting Standards Board.All assets are initially recorded at cost. Property, plant and equipment and other infrastructure assets are periodically revalued at their fair value.

257

Glossary

PORTFOLIO GLOSSARY

Accrual 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 Cabinet or Ministers and has resulted in a cost or savings to outlays.

Capital expenditure Expenditure by an agency on capital projects, for example purchasing a building.

Consolidated 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

258

Glossary

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.

Effectiveness indicators

Measures the joint or independent contribution of outputs and administered items to the achievement of their specified outcome.

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.

Financial Management and Accountability (FMA) Act 1997

The principal legislation governing the proper use and management of public money and public property and other Australian Government resources. FMA Regulations and FMA Orders are made pursuant to the Act.

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 the Agency’s assets.

Net annotated appropriation (Section 31 Receipts)

Section 31 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 31 Receipts, reflecting their authority under Section 31 of the FMA Act 1997.

Operating result Equals revenue less expenses.

259

Glossary

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.

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 31 Receipts See net annotated appropriation.Special Account Balances existing within the Consolidated Revenue

Fund (CRF) that are supported by standing appropriations (FMA Act 1997, ss.20 and 21). 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 (s.20 of the FMA Act 1997) or through an Act of Parliament (referred to in s.21 of the FMA Act 1997).

Special 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.

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