Part C

Agency Additional Estimates Statements

Page
Department of the Treasury	7
Australian Bureau of Statistics	24
Australian Taxation Office	36
Australian Competition and Consumer Commission	52
Australian Prudential Regulation Authority	67
Australian Securities and Investments Commission	79
Australian Office of Financial Management	93

Department of the Treasury
Section 1:  Overview, Additional Estimates and Variations to Outcomes
Overview
There has been no significant change to the overview to that included in the 1999‑2000 Portfolio Budget Statements.
Additional Estimates and Variations to Outcomes – Departmental Level
On 31 July 1996 the Government endorsed the Commonwealth Property Principles, which initiated the commercialisation of the Commonwealth’s property portfolio. This is being extended to include a valuation for the special purpose nature of the Overseas Estate to ensure that the true property cost is reflected by each portfolio. This will require an additional $0.818 million to be appropriated for departmental items. This requires an Additional Estimate bid for Outcome 1 — ‘Sound macroeconomic environment’.
There has been a funding classification amendment for the International Bank for Reconstruction and Development, the International Finance Corporation and the Australian National Railways Commission (now with the AOFM). The funding of $90.400 million had previously been provided under both Appropriation Bill 2 and the Capital Budget. This funding has now been classified as a capital item and results in a saving to Outcome 1 — ‘Sound macroeconomic environment’.
The government agreed to transfer $2 million from the GST Start-Up Assistance Office administered costs to departmental costs. This results in additional funding of $2 million in departmental appropriations and a saving of $2 million in administered costs. The transfer will allow the Office to employ more private sector expertise in the delivery of assistance to small and medium enterprises, community groups and education bodies. This requires an Additional Estimate bid and a saving for Outcome 2 — ‘Effective government spending and taxation arrangements’.
A total of $20 million was approved in 1998-99 for the Community Education and Information Programme (CEIP) of which $0.500 million was later transferred to the Department of Health and Aged Care. Expenditure commitment of approximately $0.200 million entered into in 1998-99 was not due for payment until 1999-2000. As there is no CEIP funding in 1999-2000, a carryover of unspent appropriation from 1998-99 was required to meet those commitments. This requires an Additional Estimates bid for Outcome 2 — ‘Effective government spending and taxation arrangements’.
An increase in the actual amount of insurance paid out in 1998-99 for the Housing Loans Insurance Company Limited (HLIC) has resulted in a recalculation of the 1999-2000 estimated requirement. This will require an additional $0.424 million to be appropriated. This requires an Additional Estimates bid for Outcome 3 — ‘Well functioning markets’.
The Department expects to receive additional funding in the form of an equity injection of $0.563 million, this being the difference between the 1998-99 estimated carryover at Budget time and the actual carryover.

	Department of the Treasury
Secretary:  Mr Ted Evans
Total Price of Outputs:  $100.406 million
Departmental Outcomes Appropriation:  $65.436 million
Total Administered Expenses:  $18,638.744 million		
									
	Overall Outcome
Strong, sustainable economic growth and the improved wellbeing of Australians		

	Outcome 1
Sound macroeconomic environment				Outcome 2
Effective government spending and taxation arrangements				Outcome 3
Well functioning markets		
																					
	Output Group 1.1
Economic
Total Price:  	$17.936 million
Dept Outputs
Appropriation:	$17.725 million
Admin Expenses:  	$264.629 million				Output Group 2.1
Budget
Total Price:  	$23.946 million
Dept Outputs
Appropriation:	$23.673 million
Admin Expenses:  	$18,207.175 million				Output Group 3.1
Markets
Total Price:  	$58.524 million
Dept Outputs
Appropriation:	$24.038 million
Admin Expenses:  	$166.940 million		

Output 1.1.1
Domestic economic policy advice and forecasting				Output 1.1.2
International economic policy advice and assessment		Output 2.1.1
Budget policy advice and coordination		Output 2.1.2
Common-wealth-State financial policy advice		Output 2.1.3
Industry policy advice		Output 2.1.4
Taxation and income support policy advice		Output 3.1.1
Foreign investment policy advice and admin-istration		Output 3.1.2
Financial system and markets policy advice		Output 3.1.3
Business and consumer policy advice		Output 3.1.4
Circulating coin and like products	

Breakdown of Additional Estimates by Appropriations Bill
Table 1.2:  Appropriation Bill (No 3) 1999-2000
	1998-99
Estimated
Expenses
$’000	1999-00
Budget

$’000	1999-00
Revised

$’000	Additional
Estimates

$’000	Reduced
Estimates

$’000	
Administered Expenses
Outcome 1
Sound macroeconomic environment	

4,187	

—	

—	

—	

—	
Outcome 2
Effective government spending and taxation arrangements	

793	

497,000	

495,000	

—	

(2,000)	
Outcome 3
Well functioning markets	
29,487	
26,300	
26,724	
424	
—	
Total	34,467	523,300	521,724	424	(2,000)	
Departmental Outputs
Outcome 1
Sound macroeconomic environment	

18,157	

16,907	

17,725	

818	

—	
Outcome 2
Effective government spending and taxation arrangements	

18,187	

21,673	

23,673	

2,000	

—	
Outcome 3
Well functioning markets	
17,008	
24,038	
24,038	
—	
—	
Total	53,352	62,618	65,436	2,818	—	
Appropriation Bill 3 (Administered & Departmental)
Total	

87,819	

585,918	

587,160	

3,242	

(2,000)	

Table 1.3:  Appropriation Bill (No 4) 1999-2000
	1998-99
Estimated
Expenses
$’000	1999-00
Budget

$’000	1999-00
Revised

$’000	Additional
Estimates

$’000	Reduced
Estimates

$’000	
Specific Payments to the States and Territories
Outcome 1
Sound macroeconomic environment	

—	

—	

—	

—	

—	
Outcome 2
Effective government spending and taxation arrangements	

—	

—	

—	

—	

—	
Outcome 3
Well functioning markets	
133,479	
134,412	
134,412	
—	
—	
Total	133,479	134,412	134,412	—	—	
Other Administered Expenses
Outcome 1
Sound macroeconomic environment	

364,972	

90,400	

—	

—	

(90,400)	
Outcome 2
Effective government spending and taxation arrangements	

44,443	

13,200	

13,400	

200	

—	
Outcome 3
Well functioning markets	
—	
—	
—	
—	
—	
Total	409,415	103,600	13,400	200	(90,400)	
Equity Injections and Loans						
Equity Injections						
Loans	—	775	775	—	—	
Carryover from previous years	
—	
3,200	
3,763	
563	
—	
Administered Capital	64,672	13,100	13,100	—	—	
Total Capital	64,672	17,075	17,638	563	—	
Total	607,566	255,087	165,450	763	(90,400)	

Footnote For Section 1:  Departmental Overview
The underlying outlays for 1998-99 is $24.161 million.
Note:  Underlying outlays is a cash concept and, as this figure is cash, it is not directly comparable with the other accrual figures in this document. This information is being provided to give additional information to support the transition from cash to accrual budgeting.

Table 1.4:  Staff Years (Number)
	1999-00
Budget	1999-00
Revised	Variation	
Outcome 1
Sound macroeconomic environment	
126	
126	
—	
Outcome 2
Effective government spending and taxation arrangements	

195	

195	

—	
Outcome 3
Well functioning markets	
184	
192	
8	
Total	505	513	8	

Section 2:  Outcomes and Outputs Information
Outcome 1 — Sound Macroeconomic Environment
Revised Performance Information and Level of Achievement — 1999‑2000
With the establishment of the AOFM as a ‘prescribed agency’ on 1 July 1999, the previous performance information under Output 1.1.3 which was included in the 1999-2000 Portfolio Budget Statements (PBS) is no longer relevant and has been removed. Details of the AOFMs performance information commences from page 93.
The remaining variations in funding for Outcome 1 are to pre-existing outputs and will not affect the remaining performance information under Outcome 1 from the 1999‑2000 PBS.
Outcome 2 — Effective Government Spending and Taxation Arrangements
Revised Performance Information and Level of Achievement — 1999‑2000
The variation in funding is to a pre-existing output that will not affect the performance information under Outcome 2 from the 1999-2000 PBS.
Outcome 3 — Well Functioning Markets
Revised Performance Information and Level of Achievement — 1999‑2000
The variation in funding is to a pre-existing output that will not affect the performance information under Outcome 3 from the 1999-2000 PBS.

Section 3:  Budget Financial Statements
The budget financial statements for 1998-99 appear in the Department’s 1999-2000 Annual Report, and form the basis for the input into the Whole of Government Accounts.
Budget Statement of Revenue and Expenses (Budget Operating Statement)
This statement provides a picture of the expected financial results for the Department of the Treasury by identifying full accrual expenses and revenues, which highlights whether the Department is operating at a sustainable level.
Budget Statement of Assets and Liabilities (Budget Balance Sheet)
This statement shows the financial position of the Department. It enables decision-makers to track the management of the Department’s assets and liabilities.
Budget Cash Flow Statement
This statement identifies expected cash flows from operating activities, investing activities and financing activities.
Capital Budget
This statement shows all proposed capital expenditure funded through the Budget as appropriations or from internal resources.

Table 3.1:  Budget Statement of Revenue and Expenses
	Actual	Revised Budget	Estimated	
	1998-99
$’000	1999-00
$’000	2000-01
$’000	2001-02
$’000	2002-03
$’000	
Departmental Revenue and Expenses						
Revenues						
Revenue from government						
Ordinary annual appropriations (net appropriations)	
50,449	
65,436	
62,522	
59,363	
59,416	
Revenue from other sources						
Sales of goods and services	30,930	34,492	25,419	25,427	25,435	
Other revenue from other sources	
2,836	
453	
4,428	
610	
621	
Total Revenue	84,215	100,381	92,369	85,400	85,472	
Expenses						
Employees	36,242	44,385	42,817	40,496	39,640	
Depreciation and amortisation	1,949	2,620	4,229	5,540	5,555	
Other costs of providing goods and services	
47,410	
51,687	
36,141	
34,211	
34,884	
Other	566	150	914	546	546	
Total Expenses	86,167	98,842	84,101	80,793	80,625	
Operating Result Before Capital User Charge	
(1,952)	
1,539	
8,268	
4,607	
4,847	
Capital User Charge	—	(1,539)	(2,367)	(2,607)	(2,847)	
Extraordinary Items	18,658	—	—	—	—	
Accumulated Results at Year End	
16,706	
—	
5,901	
2,000	
2,000	
Administered Revenue and Expenses						
Revenues						
Taxation Revenue	—	(6,951,534)	(328,913)	—	—	
Interest and dividends	1,880,638	3,693,814	1,527,720	1,500,000	1,500,000	
Other sources of non-taxation revenue	
867,335	
775,059	
219,400	
214,179	
203,295	
Appropriations	9,337,712	25,364,983	1,977,663	3,051,664	2,183,153	
Total Revenue	12,085,685	22,882,322	3,395,870	4,765,843	3,886,448	
Expenses						
Other costs of providing goods and services	
999,121	
295,343	
67,796	
78,974	
80,548	
Grants	17,394,217	18,343,401	1,566,939	2,969,769	2,101,258	
Interest and financing costs	8,549,837	—	—	—	—	
Total Expenses	26,943,175	18,638,744	1,634,735	3,048,743	2,181,806	
Net cost to Government	(14,857,490)	4,243,578	1,761,135	1,717,100	1,704,642	
Cash transfers to/from DoFA	(67,408,924)	(3,753,235)	(2,864,521)	(3,123,467)	(1,696,454)	
Accumulated Results After Transfers	
(82,266,414)	
490,343	
(1,103,386)	
(1,406,367)	
8,188	

Table 3.2:  Budget Statement of Assets and Liabilities
	Actual	Revised Budget	Estimated	
	1998-99
$’000	1999-00
$’000	2000-01
$’000	2001-02
$’000	2002-03
$’000	
Departmental Assets and Liabilities						
Debt						
Loans	—	12,752	12,800	11,263	9,726	
Finance Leases	1,501	—	—	—	—	
Total Debt	1,501	12,752	12,800	11,263	9,726	
Provisions and Payables						
Employees	13,408	11,978	11,983	11,895	11,880	
Suppliers	1,126	859	881	901	922	
Other	4,965	1,145	1,175	1,201	1,229	
Total Provisions and Payables	19,499	13,982	14,039	13,997	14,031	
Equity						
Accumulated results	16,706	10,186	16,087	18,087	20,087	
Reserves	5,673	4,463	4,463	4,463	4,463	
Total Equity	22,379	14,649	20,550	22,550	24,550	
Total Liabilities and Equity	43,379	41,383	47,389	47,810	48,307	
Financial Assets						
Cash	547	2,541	9,669	18,089	23,793	
Receivables	4,732	1,375	1,408	1,441	1,475	
Investments	—	3,000	2,000	—	—	
Total Financial Assets	5,279	6,916	13,077	19,530	25,268	
Non-financial Assets						
Infrastructure, plant and equipment	
10,576	
6,207	
20,163	
15,039	
10,720	
Intangibles	7,505	1,778	1,448	1,067	856	
Other	20,019	26,482	12,701	12,174	11,463	
Total Non-financial Assets	38,100	34,467	34,312	28,280	23,039	
Total Assets	43,379	41,383	47,389	47,810	48,307	

Table 3.2:  Budget Statement of Assets and Liabilities (continued)
	Actual	Revised Budget	Estimated	
	1998-99
$’000	1999-00
$’000	2000-01
$’000	2001-02
$’000	2002-03
$’000	
Administered Assets and Liabilities						
Debt						
Government Securities	89,053,504	—	—	—	—	
Loans	4,346,721	4,166,061	4,159,053	4,152,863	4,148,268	
Other	—	1,443,030	1,446,080	1,446,080	1,446,080	
Total Debt	93,400,225	5,609,091	5,605,133	5,598,943	5,594,348	
Provisions and Payables						
Grants	25,000	22,500	20,000	17,500	15,000	
Other	5,312,241	114,284	86,488	71,622	64,603	
Total Provisions and Payables	5,337,241	136,784	106,488	89,122	79,603	
Equity						
Accumulated results	(82,266,414)	10,360,844	9,257,458	7,851,091	7,859,279	
Reserves	8,039,640	657,736	2,088,958	2,097,648	2,104,743	
Total Equity	(74,226,774)	11,018,580	11,346,416	9,948,739	9,964,022	
Total Liabilities and Equity	24,510,692	16,764,455	17,058,037	15,636,804	15,637,973	
Financial Assets						
Cash	12,781	2,906	2,906	2,906	2,906	
Receivables	148,367	1,214,931	1,497,401	77,827	79,827	
Investments	15,266,681	15,540,449	15,554,884	15,554,884	15,554,884	
Accrued revenues	9,070,678	—	—	—	—	
Total Financial Assets	24,498,507	16,758,286	17,055,191	15,635,617	15,637,617	
Non-financial Assets						
Other non-financial assets	12,185	6,169	2,846	1,187	356	
Total Non-financial Assets	12,185	6,169	2,846	1,187	356	
Total Assets	24,510,692	16,764,455	17,058,037	15,636,804	15,637,973	

Table 3.3:  Budget Cash Flow Statement
	Actual	Revised Budget	Estimated	
	1998-99
$’000	1999-00
$’000	2000-01
$’000	2001-02
$’000	2002-03
$’000	
Departmental Cash Flows						
Operating Activities						
Cash Received						
Appropriations	54,642	65,436	62,522	59,363	59,416	
Sales of goods and services	33,613	34,491	25,418	25,426	25,434	
Other	—	425	528	566	575	
Total Cash Received	88,255	100,352	88,468	85,355	84,425	
Cash Used						
Employees	35,576	47,612	42,869	40,638	39,707	
Suppliers	52,445	51,419	33,538	31,526	34,105	
Other	10	150	896	546	546	
Total Cash Used	88,031	99,181	77,303	72,710	74,358	
Net Cash from Operating Activities	224	1,171	11,165	12,645	11,067	
Investing Activities						
Cash Received						
Proceeds from sale of property, plant and equipment	
88	
40	
42	
44	
46	
Other	—	—	—	—	—	
Total Cash Received	88	40	42	44	46	
Cash Used						
Purchase of property, plant and equipment	2,740	12,798	5,660	125	1,025	
Total Cash Used	2,740	12,798	5,660	125	1,025	
Net Cash from Investing Activities	(2,652)	(12,758)	(5,618)	(81)	(979)	
Financing Activities						
Cash Received						
Proceeds from borrowings	—	775	—	—	—	
Other	3,503	14,384	5,485	—	—	
Total Cash Received	3,503	15,159	5,485	—	—	
Cash Used						
Capital user charge paid	—	1,300	2,367	2,607	2,847	
Repayment of borrowings	564	278	153	153	153	
Other	—	—	1,384	1,384	1,384	
Total Cash Used	564	1,578	3,904	4,144	4,384	
Net Cash from Financing Activities	2,939	13,581	1,581	-4,144	-4,384	
Net increase/decrease in cash held	511	1,994	7,128	8,420	5,704	
Add cash as at 1 July	36	547	2,541	9,669	18,089	
Cash as at 30 June	547	2,541	9,669	18,089	23,793	

Table 3.3:  Budget Cash Flow Statement (continued)
	Actual	Revised Budget	Estimated	
	1998-99
$’000	1999-00
$’000	2000-01
$’000	2001-02
$’000	2002-03
$’000	
Administered Cash Flows						
Operating Activities						
Cash Received						
Taxes, fees and fines	—	(6,951,534)	(328,913)	—	—	
Interest and dividends	4,577,480	3,017,814	2,203,720	1,500,000	1,500,000	
Appropriations receipts	26,666,714	18,420,340	1,649,217	3,052,164	2,183,653	
Other	763,454	734,701	195,613	201,893	196,454	
Total Cash Received	32,007,648	15,221,321	3,719,637	4,754,057	3,880,107	
Cash Used						
Grants	17,396,717	18,345,901	1,569,439	2,972,269	2,103,758	
Borrowing costs	8,857,424	—	—	—	—	
Cash to CRF	5,326,889	(3,199,019)	2,070,420	1,701,893	1,696,454	
Other	111,946	74,439	79,778	79,895	79,895	
Total Cash Used	31,692,976	15,221,321	3,719,637	4,754,057	3,880,107	
Net Cash from Operating Activities	314,672	—	—	—	—	
Investing Activities						
Cash Received						
Repayment of advances	1,671,837	—	465,188	1,421,574	—	
Consolidated Revenue Fund	4,145,813	472,432	1,421,574	—	—	
Other	3,599,074	—	—	—	—	
Total Cash Received	9,416,724	472,432	1,886,762	1,421,574	—	
Cash Used						
Advances made	—	464,468	1,421,574	—	—	
Purchase of equity instruments	11,330	7,964	—	—	—	
Consolidated Revenue Fund	5,258,031	—	465,188	1,421,574	—	
Other	4,134,483	—	—	—	—	
Total Cash Used	9,403,844	472,432	1,886,762	1,421,574	—	
Net Cash from Investing Activities	12,880	—	—	—	—	
Financing Activities						
Cash Received						
Proceeds from borrowings	61,077,791	173,649	7,868	6,190	4,595	
Consolidated Revenue Fund	70,366,459	—	—	—	—	
Other	8,606,106	—	—	—	—	
Total Cash Received	140,050,356	173,649	7,868	6,190	4,595	
Cash Used						
Consolidated Revenue Fund 	68,745,218	—	—	—	—	
Repayment of debt	71,350,234	—	—	—	—	
Other	281,108	182,804	7,148	6,190	4,595	
Total Cash Used	140,376,560	182,804	7,148	6,190	4,595	
Net Cash from Financing Activities	(326,204)	(9,155)	720	—	—	
Net increase/decrease in cash held	1,348	(9,155)	720	—	—	
Add cash as at 1 July	11,433	12,781	3,626	2,906	2,906	
Cash as at 30 June	12,781	3,626	2,906	2,906	2,906	

Capital Budget
Table 3.4:  Capital Budget
	Actual	Revised Budget	Estimated	
	1998-99
$’000	1999-00
$’000	2000-01
$’000	2001-02
$’000	2002-03
$’000	
Departmental						
Total Loans	—	775	—	—	—	
Appropriation of previous years carryover	—	3,763	—	—	—	
Total Capital Appropriations	—	4,538	—	—	—	
Represented by						
Purchase of non-current assets	—	775	—	—	—	
Other	—	3,763	—	—	—	
Total Departmental	—	4,538	—	—	—	
						
Administered						
Total Equity Injections	—	642,474	7,148	6,190	4,595	
Total Loans	—	—	—	—	—	
Total Capital Appropriations	—	642,474	7,148	6,190	4,595	
Represented by						
Purchase of non-current assets						
Other	—	642,474	7,148	6,190	4,595	
Total Items	—	642,474	7,148	6,190	4,595	
						
Administered Financial Assets Funded by Special Appropriations						
Administered Capital	—	15,262	1,424,074	2,500	2,500	
Represented by						
Purchase of non-current assets						
Other	—	15,262	1,424,074	2,500	2,500	
Total Items	—	15,262	1,424,074	2,500	2,500	
Notes to the Financial Statements
Basis of Accounting
The agency budget statements are prepared in compliance with Australian Accounting Standards, Accounting Guidance Releases and having regard to Statements of Accounting Concepts.
Departmental
The 1998-1999 actual figures include the AOFM. The AOFM became a prescribed agency on 1 July 1999 and estimates are contained in the AOFM’s section of the PAES.
There are no substantial variations to the notes published in The Treasury Annual Report 1998–99.
Administered
The 1998-1999 actual figures include the AOFM. The AOFM became a prescribed agency on 1 July 1999 and estimates are contained in the AOFM’s section of the PAES.
There are no substantial variations to the notes outlined in the 1999–2000 Portfolio Budget Statements and The Treasury Annual Report 1998–99 apart from the inclusion of the AOFM.

Appendix 1
Non-Appropriation Departmental and Administered Revenue
	Budget Estimate	Revised Estimate	
	1999-00
$’000	1999-00
$’000	
Departmental Revenue			
Departmental Section 31 receipts	753	753	
Royal Australian Mint revenue	34,217	34,217	
Total Non-appropriation Departmental Revenue	34,970	34,970	
Appropriations	65,300	62,618	
Total Departmental Revenue	100,270	97,588	
			
Administered Revenue			
Banking Act 1959 — Unclaimed moneys	18,000	18,000	
Bank dividends	3,200,000	3,676,000	
Housing Loans Insurance Corporation — 
Recoveries from old book stock and premiums	
42,138	
41,369	
Receipts under the International Monetary Agreements Act 1947	
581,419	
540,541	
Royal Australian Mint and Coinage — Moneys in excess of requirements	
98,200	
107,500	
Seignorage payments — Gold Corporation	617	617	
States Grants (General Purposes) Act 1994 — Revenue Replacement Payments	
(6,750,888)	
(6,951,534)	
Financial sector supervisory levies	72,702	84,702	
Miscellaneous — Treasury Department	105	105	
Other	—	39	
Total Non-appropriation Administered Revenue	(2,737,707)	(2,482,661)	
Appropriations	24,698,004	25,366,983	
Total Administered Revenue	21,960,297	22,884,322	

Appendix 2
Estimates of Expenses from Special Appropriations
	Budget Estimate	Revised Estimate	
	1999-00
$’000	1999-00
$’000	
Banking Act 1959 — Unclaimed moneys	15,000	5,804	
International Monetary Agreements Act 1947	528,869	264,629	
States Grants (General Purposes) Act 1994	17,706,357	17,698,775	
Total Estimated Expenses	18,250,226	17,969,208