APPENDICES

1997-98 PORTFOLIO PROGRAMme STRUCTURE
Programme	Sub-Programme	
		
1.	Treasury	1.1	Domestic Economy	
	1.2	International Economy	
	1.3	Structural	
	1.4	Taxation	
	1.5	Fiscal	
	1.6	Debt Management	
	1.7	Investment	
	1.8	Financial & Currency	
	1.9	Business Law	
	1.10	Corporate Direction & Support	
		
2.	Royal Australian Mint	No Sub-Programmes	
	(Not Budget Funded)		
		
3.	Australian Bureau of Statistics	3.1	Statistical Operations	
	3.2	Corporate Services	
		
4.	Taxation Administration	4.1	Income & Other Taxes	
	(Australian Taxation Office)	4.2	Child Support Agency	
	4.3	Corporate Support	
		
5.	Productivity	No Sub-Programmes	
		
	(Includes Industry Commission, Bureau of Industry Economics and Economic Planning Advisory Commission)		
		
6.	Australian Competition and Consumer Commission	6.1	Compliance with the Trade Practices 
Act	
	6.2	Improvement in Market Conduct	
	6.3	Education & Information	
	6.4	Corporate Planning & Management	
		
7.	Insurance and Superannuation 	7.1	Corporate Services	
	Commission	7.2	Life Insurance	
	7.3	Actuarial	
	7.4	Superannuation	
	7.5	General Insurance	
		
8.	Business Affairs	8.1	Australian Securities Commission	
	8.2	Companies & Securities Advisory Committee	
		
9.	National Competition Council	No Sub-Programmes	

GLOSSARY OF TECHNICAL TERMS
Additional Estimates — where amounts appropriated at budget time are insufficient, Parliament may appropriate more funds to portfolios through the Additional Estimates Acts. This is the Additional Estimates process.
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. In 1997‑98, the Budget was introduced in May 1997, and the Additional Estimates Bills in October 1997.
Appropriation — an authorisation by Parliament to spend moneys from the Consolidated Revenue Fund.
	Annotated Appropriation — a form of appropriation which allows a department access to certain money it receives in payment of services. The nature and extent of the amount to be appropriated are specified in agreements made under Section 31 of the Financial Management and Accountability (FMA) Act 1997 between the financial manager and the responsible Minister. See Section 9, Appropriation Bill (No. 1) 1998-99.
	Annual Appropriation — Two appropriation Bills are introduced into Parliament in May and comprise the Budget. Further bills are introduced later in the financial year as part of the additional estimates. Parliamentary departments have their own appropriations.
	Special Appropriations — Moneys appropriated by Parliament in an Act separate to an annual Appropriation Act, where the payment is for a specified amount. Special appropriations are not subject to Parliament’s annual budget control, unlike the annual appropriations.
	Standing Appropriations — These are very similar to special appropriations, except that instead of an amount being specified in the appropriation, the act provides for an automatic payment of funds where an entitlement exists, such as age pensions, or for the Minister for Finance to determine an amount in accordance with specified criteria. The terms special and standing are often used interchangeably.
Financial Management and Accountability (FMA) Act 1997 — The principal legislation governing the proper use and management of public money and public property and other Commonwealth resources. FMA Regulations and FMA Orders are made pursuant to the Act.
Budget Measure — a decision by the Cabinet or Ministers that has been finalised since the 1997-98 Budget and has resulted in a cost or savings to underlying outlays in the years 1998-99 to 2001-02. See also Cross Portfolio Budget Measure.

Commonwealth Funds
	Consolidated Revenue Fund (CRF) — This is the principal working fund of the Commonwealth and is mainly financed by taxation, fees and other current receipts. The Constitution requires an appropriation of moneys by the Parliament before any expenditure can be made from the CRF (s83).
	Loan Fund — Established by the FMA Act 1997, the Loan Fund contains all moneys raised by loan on the public credit of the Commonwealth. Expenditure from the Loan Fund is limited to the purpose for which the moneys were raised.
	Reserved Money Fund (RMF) — Accounts for money which the Commonwealth holds on trust for, or otherwise for the benefit of, a person other than the Commonwealth and moneys which are ‘reserved’ for future Commonwealth purposes. Components of the RMF, specifying the nature of receipts that may be credited to, and payments that may be made from each component, may be established by the Finance Minister under section 20 of the FMA Act, or by specific legislation. The transfer of receipts from the CRF to, and payments from, component of the RMF are authorised by standing appropriations in section 20 of the FMA Act.
	Commercial Activities Fund (CAF) — Accounts for various activities of agencies which should be accounted for as if they were genuinely commercial. Components of the CAF specifying the nature of receipts that may be credited to, and payments that may be made from, each component, may be established by the Finance Minister under section 21 of the FMA Act. The criteria applied to establishing components of the CAF are:
•	The purpose of the activity to be financed via the CAF involves the provision of goods and services;
•	The organisation undertaking the activity has a management structure that is discrete within the agency and that the costs of that management structure are segregated from the costs of the other activities and programmes of the agency;
•	The activities are funded predominantly from revenue raised from users or purchasers and that there is a ‘profit-making’ objective; and
•	The organisation is, or potentially will be, competing in a commercially contestable environment.
Cross Portfolio Budget Measure  This is a Budget measure which affects programmes administered in a number of Portfolio.
Efficiency Dividend — An annual deduction of a percentage of running costs from an agency’s budget which acts both as an incentive to efficiency and a quantification of some of the efficiency gains made by an agency in the previous year.
Financing transactions — the Government funds shortfalls in revenue over outlays by borrowing from financial markets or running down financial assets. Such activities are regarded as financing transactions. If a surplus of revenue over outlays is recorded then financing transactions will show how the surplus is used.
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 next year’s budget bid, and another outyear is added to the forward estimates.
Objective — A statement of rationale behind a programme; they relate to the purpose, as opposed to the nature, of the activities undertaken within programmes.
Outlays (underlying)  is an economic concept that has its roots in international standards for government reporting. In the Budget context it measures the net resources cost of the budget provision of public goods and services.
Not only payments are included in outlays. For example, some receipts are netted off against related payments. Moreover not all payments are outlays, for example, payments of principal to government security holders are classified as financing transactions and as such are not outlays, whereas interest payments are.
It is important to distinguish between appropriations and underlying outlays. Appropriations derive from Acts of Parliament which authorise the drawing down of public money for the functions and activities of Government.
Underlying outlays = total appropriations – adjustments.
Adjustments to appropriations to derive outlays are:
•	payments that are not underlying outlays (for example loan payments ¾ these are financial transactions ¾ and tax refunds ¾ netted against taxation revenues);
•	receipts that are offset within underlying outlays ¾ these are charges for goods and services, sales of physical assets and repayments of government loans or repayment of equity in government enterprises;
•	RMF and CAF transactions regarded as outlays ¾ shows how the components of appropriations are adjusted to derive underlying outlays for each of the Portfolio’s Programmes; and
•	net advances  these are government transactions which simply involve the transfer or exchange of financial assets. Net advances include:
•	the sale and purchase of equity assets;
•	the injection and withdrawal of equity from entities outside the Government’s 	accounts; and
•	public policy lending and repayments to other sectors.
It is important to distinguish between appropriations and underlying outlays. Appropriations derive from Acts of the Parliament which authorise the drawing down of Commonwealth money for the functions and activities of Government.
Programme, Sub-Programme, Component — a Programme is an identifiable group of outlays administered by Portfolios. The Programme structure provides a basis for resource management decisions centred on objectives and results, and for allocation decisions. Programmes are subdivided into Sub‑Programmes and Components.
Portfolio Budget Statements — statements prepared by Portfolios to explain the Budget appropriations in terms of programmes.
Receipts — the total or gross amount received by the Commonwealth. Each receipts item is either revenue, an offset within outlays, or a financing transaction. Receipts include taxes, interest, charges for goods and services, borrowings and GBE dividends received.
Revenue — the main way the government funds its outlays. It is mainly tax receipts, fees for regulatory services performed by government and interest and dividends received. Tax refunds are correcting transactions and are regarded as offsets within revenue.
Running Costs — The full current and minor capital costs consumed by an agency in providing government services for which the agency is responsible.
Section 31 receipts — see Annotated Appropriation.
Staff years — An aggregate measure of employment based on the hours worked by employees over the period of one year. It is the unit of measurement for staff resource use.
RMF/CAF components   An account held under the RMF/CAF. They are used as working accounts for commercial activities or to hold moneys in trust for specific purpose under legislation.
Trust fund transactions regarded as outlays — Outlays is a net measure of government activity with other sectors in the economy. Therefore transactions between the Consolidated Revenue Fund, the RMF and CAF, and the Loan Fund are consolidated and inter fund transfers disregarded. Thus, an appropriation from the CRF to a RMF/CAF component would not be an outlay. A payment from a RMF/CAF that flows outside the Commonwealth Public Account would be an outlay, to be taken into account when reconciling total appropriations to total outlays.
Underlying outlays   see Outlays (underlying).

GLOSSARY OF ABBREVIATIONS AND ACRONYMS
AASB	Australian Accounting Standards Board	
AARF	Australian Accounting Research Foundation	
ABS	Australian Bureau of Statistics 	
ABSCQ	ABS Standard Classification of Qualifications	
ACA	Australian Communications Authority	
ACCC	Australian Competition and Consumer Commission	
ACEPS	Achieving Cost Effective Personnel Services	
ACT	Australian Capital Territory 	
ADB	Asian Development Bank	
ADF	Approved Deposit Fund	
AE	Additional Estimates	
AG	Attorney-General	
ALRC	Australian Law Reform Commission	
ANAO	Australian National Audit Office	
ANCO	Australian National Classification of Offences	
ANR	Australian National Rail	
APEC	Asia Pacific Economic Cooperation	
APRA	Australian Prudential Regulation Authority	
ASC	Australian Securities Commission	
ASCO	Australian Standard Classification of Occupations	
ASGC	Australian Standard Geographical Classification	
ASIC	Australian Securities and Investments Commission	
ASX	Australian Stock Exchange	
ATM	Accounting Theory Monograph	
ATO	Australian Taxation Office 	
AVO	Australian Valuation Office	
BIE	Bureau of Industry Economics	
CASAC	Companies and Securities Advisory Committee	
CBA	Commonwealth Bank of Australia	
CDB	Commonwealth Development Bank	
CGS	Commonwealth Government securities	
CIS Act	Commonwealth Inscribed Stock Act 1911	
COAG	Council of Australian Governments	
COPO	Commonwealth Own Purpose Outlays	
COPs	Centre of Policy Studies	
CPI	Consumer Price Index	
CRF	Consolidated Revenue Fund	
CS	Corporate Services	
CSA	Child Support Agency 	
CSHA	Commonwealth State Housing Agreement	
DAA	Development Allowance Authority	
DAAS	Development Allowance Authority Secretariat	
DIST	Department of Industry, Science and Tourism	
DoFA	Department of Finance and Administration	
DP	Discussion Paper	
DRRTA	Debt Retirement Reserve Trust Account	
DSS	Department of Social Security	

GLOSSARY OF ABBREVIATIONS AND ACRONYMS (CONTINUED)
DTIs	Deposit‑Taking Institutions	
EBRD	European Bank for Reconstruction and Development	
ED	Exposure Draft	
EDF	Employment Declaration Form	
ENA	Evolutionary Network Architecture	
EPAC	Economic Planning Advisory Commission	
ESAF	Enhanced Structural Adjustment Facility	
FAC	Federal Airports Corporation	
FAG	Financial Assistance Grants	
FAME	Forecasting Analysis and Modelling Environment	
FBT	Fringe Benefits Tax	
FIRB	Foreign Investment Review Board	
FIRM	Finance Information on Resource Management	
FMA	Financial Management Act	
FMIS	Financial Management Information Systems	
FS	Financial Services	
FSAC	Financial Sector Advisory Council	
FSI	Financial System Inquiry	
GBE	Government Business Enterprises	
GDP	Gross Domestic Product	
GTE	Government Trading Enterprise	
HECS 	Higher Education Contribution Scheme 	
HIC	Health Insurance Commission	
HWIs	High Wealth Individuals	
HLIC	Housing Loans Insurance Corporation	
IAIS	International Association of Insurance Supervisors	
IASC	International Accounting Standards Committee	
IBRD	International Bank for Reconstruction and Development	
IC	Industry Commission	
IDD	Investment and Debt Division	
IED	International Economy Division	
IEG	Investment Experts Group	
IFC	International Finance Corporation	
IID	International and Investment Division	
IMF	International Monetary Fund 	
INB	Individuals Non-Business	
ISC	Insurance and Superannuation Commission 	
ITAA	Income Tax Assessment Act	
ITS	Information Technology Services	
LIASB	Life Insurance Actuarial Standards Board	
LB&I	Large Business & International	
LCIR	Loan Consolidation and Investment Reserve 	
LME	Loan Management Expenses 	
MIB	Managed Investment Bill	
MIGA	Multilateral Investment Guarantee Agency	
MP	Member of Parliament	
NCC	National Competition Council	

GLOSSARY OF ABBREVIATIONS AND ACRONYMS (coNTINUED)
NCD	Non-Callable Deposits	
NCPR	National Competition Policy Reform	
NDSF 	National Debt Sinking Fund 	
NGO	Non Government Organisation	
NIES	National Industry Extension Scheme	
NPP	New Policy Proposal	
NTDSF	Northern Territory Debt Sinking Fund	
OECD	Organisation for Economic Cooperation and Development	
OGIT	Office of Government Information Technology	
ORR	Office of Regulation Review	
OTC	Overseas Telecommunications Corporation	
PAC	Public Accounts Committee	
PATA	Pacific Association of Tax Administrators	
PAYE	Pay As You Earn	
PBS	Portfolio Budget Statements	
PC	Productivity Commission	
PDI	Public Debt Interest 	
PNG	Papua New Guinea	
PRISMOD	Price Revenue Incidence Simulation Model	
PPS	Prescribed Payments System	
PRU	Policy Research Unit	
PSA	Prices Surveillance Authority 	
PSS	Public Sector Superannuation	
RAM	Royal Australian Mint	
RBA	Reserve Bank of Australia	
RBL	Retirement Benefits Limits	
RIMTF	Retirement Income Modelling Task Force	
RPS	Reportable Payments System	
RSA	Retirement Savings Accounts	
(SA)	Special Appropriation	
SAC	Statement of Accounting Concepts	
SATC	Structural Adjustment and Trade Committee	
SBI	Small Business Income	
SES	Senior Executive Service	
SHAR	Superannuation Holding Accounts Reserve	
SIS	Superannuation Industry Supervision	
SPEED	Standard Processing Environment for Economic Data	
SPP	Specific Purpose Payments	
SPR	Superannuation	
SRA 	Special Revenue Assistance	
STD	AASB/AAS Standard	
SY	Staff Years 	
TPA	The Pipeline Authority	
TPA	Trade Practices Act	
TPC	Trade Practices Commission	
TPD	Taxation Policy Division	
TPG	Taxation Policy Group	

GLOSSARY OF ABBREVIATIONS AND ACRONYMS (coNTINUED)
TRG	Tax Reform Group	
TRIS	Treasury Resource Information System	
UMBER	Unclaimed Moneys and Benefits in Eligible Roll-over Funds	
VNMS	Voice Network Management System	
WHT	Withholding and Indirect Taxes	
WTO	World Trade Organisation