Australian Competition and Consumer Commission
Section 1: Overview, Additional Estimates and Variations to Outcomes
Overview
There has been no change to the overview to that included in the 1999‑2000 Portfolio Budget Statements.
Additional Estimates and Variations to Outcomes
An additional appropriation of $5.081 million is provided for the ACCC in the 1999‑2000 Additional Estimates context. This additional appropriation relates to $5 million for monitoring retail prices during the transition to A New Tax System (ANTS) and $0.081 million for the ACCC’s 1998‑99 carryover.
The Australian Competition and Consumer Commission Additional funding for retail price monitoring relating to A New Tax System
The ACCC will undertake a number of national price collections during 1999-2000 to enable the ACCC to effectively monitor price changes during the transition to ANTS. 
Funding of $28 million (to be provided over three financial years) was allocated to the ACCC in the 1999-2000 Budget to administer new legislation prohibiting price exploitation in relation to the New Tax System. Subsequently, in light of the success of the ACCC’s price monitoring activities in relation to the reduction in Wholesale Sales Tax (WST) from 32 per cent to 22 per cent on certain goods from (29 July 1999), an extension of the ACCC’s price monitoring activities was agreed. The surveys undertaken during the WST reduction demonstrated that widespread data collection is an effective deterrent against price exploitation. The survey indicated a high compliance rate among manufacturers, distributors and retailers.
The ACCC’s price monitoring activities will, with passage of the A New Tax System (Indirect Tax and Consequential Amendments) Bill 1999, be broadened to increase the number of prices of goods and services surveyed, the frequency of surveys and the number of sites throughout Australia where surveys are conducted. To promote a high level of compliance with the prohibition on price exploitation, collections of price information are required before, during and after the introduction of ANTS. This will also assist to ameliorate community concern over the implementation of ANTS.
The increased scope and incidence of price surveys to be conducted by the ACCC will assist to prevent price exploitation in the lead up to, as well as through the implementation of, ANTS. This will enable any exploitative anticipatory price rises prior to the implementation of ANTS to be detected and dealt with under the Trade Practices Act. The ACCC requires an additional $5 million in 1999-2000 to undertake the expansion of this monitoring function.
A transparent price monitoring regime demonstrably promotes higher compliance by retailers (and their suppliers). This reflects the recognition by business of the ACCC’s role in price collection and analysis at the ‘coalface’. The increased appropriation will strengthen the ACCC’s ability to ensure that consumers are not subjected to price exploitation under ANTS.
1998‑99 Carryover
The ACCC also expects to receive additional funding in the form of an equity injection of $0.081 million being the difference between the 1998‑99 estimate carryover at budget time and the actual carryover.

	Australian Competition and Consumer Commission
Chairperson:  Professor Allan Fels		
							
	Overall Outcome
Strong, sustainable economic growth and the improved wellbeing of Australians		
							
	Outcome 1
To enhance social and economic welfare of the Australian community by fostering competitive, efficient, fair and informed Australian markets
Total Price of Outputs:  $56.476 million
Agency Outcomes Appropriation:  $55.872 million		
							
	Output Group 1.1
Australian Competition and Consumer Commission		

Output 1.1.1
Compliance obligations pursuant to administration of Acts (Trade Practices Act, Prices Surveillance Act) and statutory responsibilities arising from parts of other relevant Acts and subordinate regulatory instruments		Output 1.1.2
Competition initiatives, regulatory mechanisms, liaison and information	

Australian Competition and Consumer Commission — Appropriations 1999‑2000
Table 1.1: Summary of Measures since the 1999‑2000 Budget
Measure	Outcome	Output Groups Affected	Appropriations ($’000)
1999‑2000	Appropriations ($’000)
2000‑2001	Appropriations ($’000)
2001‑2002	Appropriations ($’000)
2002‑2003	
			Admin Expenses	Dept Outputs	Total	Admin Expenses	Dept Outputs	Total	Admin Expenses	Dept Outputs	Total	Admin Expenses	Dept Outputs	Total	
The Australian Competition and Consumer Commission Additional funding for retail price monitoring relating to A New Tax System	

1	

1.1	

—	

5,000	

5,000	

—	

—	

—	

—	

—	

—	

—	

—	

—	
Note:	For a description of the measures taken above please refer to the Additional Estimates and Variations to Outcome information listed on the previous pages.

Breakdown of Additional Estimates by Appropriation Bill
Table 1.2:  Appropriation Bill (No. 3) 1999‑2000
	1998‑99
Estimated Expenses1
$’000	1999‑2000
Budget

$’000	1999‑2000
Revised

$’000	Additional Estimates

$’000	Reduced Estimates

$’000	
Agency Outputs
Outcome 1 — To enhance social and economic welfare of the Australian community by fostering competitive, efficient, fair and informed Australian markets	

39,007	

50,872	

55,872	

5,000	

—	
Total	39,007	50,872	55,872	5,000	—	
1	These figures are those published as 1998‑99 Estimated Expenses in the 1999‑2000 Budget Appropriation (Budget Paper No. 4: Agency Resourcing).

Table 1.3:  Appropriation Bill (No. 4) 1999‑2000
	1998‑99
Estimated
Expenses2
$’000	1999‑2000
Budget

$’000	1999‑2000
Revised

$’000	Additional
Estimates

$’000	Reduced
Estimates

$’000	
Equity Injections and Loans						
Equity Injections	—	—	—	—	—	
Loans	—	—	—	—	—	
Carryover from previous years	
—	
—	
81	
81	
—	
Total	—	—	81	81	—	
2	These figures are those published as 1998‑99 Estimated Expenses in the 1999‑2000 Budget Appropriation (Budget Paper No. 4: Agency Resourcing).

Table 1.4:  Staff Years (Number)
	1999‑2000
Budget	1999‑2000
Revised	Variation	
Outcome 1	372	372	—	

Section 2: Outcomes and Outputs Information
Outcomes and Output Groups
The ACCC has not made any changes to its outcome or outputs since the 1999‑2000 Portfolio Budget Statements.
Explanation of Variations
The two additional estimates measures explained below fall under the Commissions current output 1.1.1: Compliance obligations pursuant to administration of Acts (Trade Practices Act, Prices Surveillance Act) and statutory responsibilities arising from parts of other relevant Acts and subordinate regulatory instruments. 
The Australian Competition and Consumer Commission Additional funding for retail price monitoring relating to A New Tax System 
The Government will provide additional resources for 1999‑2000 to the Australian Competition and Consumer Commission (ACCC) to monitor retail prices during the transition to A New Tax System. 
The ACCC will be:
•	given additional funding in 1999‑2000 to commence a number of national price collections. The collections will provide a rigorous analysis of prices.
•	required to monitor and report to the Minister under S75AZ of the ‘A New Tax System’ (Trade Practices Amendment) Act 1999. The legislation also requires that the reports be made public by the Minister as soon as practicable.
Revised Performance Information and Level of Achievement — 1999‑2000
Table 2.1 shows the performance information that the ACCC will use to assess the level of its achievement against Output 1.1.1 during 1999‑2000. 

Table 2.1:  Performance Information for Outputs Affected by Additional Estimates — Outcome 1
Table 2.1:  Performance Information 1999‑2000	
Output Group 1.1 — Australian Competition and Consumer Commission	
	Indicators	Measures	
Output 1.1.1: Compliance obligations pursuant to administration of Acts (Trade Practices Act, Prices Surveillance Act) and statutory responsibilities arising from parts of other relevant Acts and subordinate regulatory instruments.	Price collection survey strategy discourages profiteering, informs consumers and retailers, and assists with community acceptance of ANTS.	Effective and timely price collection surveys carried out at strategic times throughout the implementation phase of ANTS.

The effectiveness indicators for Outcome 1 and performance information for the other outputs underneath this outcome are unchanged from the 1999‑2000 Performance Budget Statement.

Section 3:  Budget Financial Statements
The budget financial statements will form the basis of the financial statements that will appear in the Australian Competition and Consumer Commission’s 1999‑2000 Annual Report, and form the basis for the input into the Whole of Government Accounts.
Budget Statement of Revenues and Expenses (Budget Operating Statement)
This statement provides a picture of the expected financial results for the ACCC by identifying full accrual expenses and revenues, which highlights whether the ACCC is operating at a sustainable level.
Budget Statement of Assets and Liabilities (Budget Balance Sheet)
This statement shows the financial position of the ACCC. It enables decision-makers to track the management of the ACCC’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 sources.

Table 3.1:  Budget Statement of Revenue and Expenses
	Estimated Actual3	Revised Budget	Estimated	
	1998‑99
$’000	1999‑00
$’000	2000‑01
$’000	2001‑02
$’000	2002‑03
$’000	
Agency Revenue and Expenses						
Revenues						
Revenue from government						
Ordinary annual appropriations (net appropriations)	
35,621	
52,380	
44,289	
40,762	
34,353	
Capital appropriation	—	81	—	—	—	
Other services	3,386	3,492	3,609	3,282	3,338	
Resources received free of charge	59	55	55	55	55	
Revenue from other sources						
Sales of goods and services	341	468	468	468	468	
Total Revenue	39,407	56,476	48,421	44,567	38,214	
Expenses						
Employees	20,463	22,755	22,584	22,502	20,296	
Suppliers	17,603	32,676	24,951	21,392	17,321	
Depreciation and amortisation	1,301	860	870	658	575	
Other	14	1,454	14	14	14	
Total Expenses	39,381	57,745	48,419	44,566	38,206	
Operating Result Before Capital User Charge	
26	
(1,269)	
2	
1	
8	
Capital User Charge	—	—	—	—	—	
Transfers and Dividends	—	—	—	—	—	
Accumulated Results at Year End	26	(1,269)	2	1	8	
Administered Revenue and Expenses						
Expenses						
Total Expenses	—	—	—	—	—	
Revenue						
Fines and costs	2,000	9,775	9,775	9,775	9,775	
Authorisation fees	300	200	200	200	200	
Other	50	25	25	25	25	
Total Revenue	2,350	10,000	10,000	10,000	10,000	
Net contribution to government	—	—	—	—	—	
3	These figures are those estimated actuals as published in the 1999‑2000 Treasury Portfolio Budget Statements.

Table 3.2:  Budget Statement of Assets and Liabilities
	EstimatedActual4	Revised Budget	Estimated	
	1998‑99
$’000	1999‑00
$’000	2000‑01
$’000	2001‑02
$’000	2002‑03
$’000	
Agency Assets and Liabilities						
Debt						
Leases	93	113	133	153	173	
Total Debt	93	113	133	153	173	
Provisions and Payables						
Employees	6,208	6,691	7,203	7,633	7,939	
Suppliers	950	1,050	1,050	900	900	
Total Provisions and Payables	7,158	7,741	8,253	8,533	8,839	
Equity						
Accumulated results	(2,840)	(4,111)	(4,109)	(4,108)	(4,100)	
Total Equity	(2,840)	(4,111)	(4,109)	(4,108)	(4,100)	
Total Liabilities and Equity	4,411	3,743	4,277	4,578	4,912	
Financial Assets						
Cash	13	13	13	13	13	
Receivables	50	50	50	50	50	
Total Financial Assets	63	63	63	63	63	
Non‑financial Assets						
Buildings (leasehold improvements)	1,522	1,794	2,098	2,376	2,537	
Infrastructure, plant and equipment	2,005	1,203	1,550	1,639	1,743	
Intangibles	346	215	85	—	—	
Inventories	85	90	95	100	105	
Other	390	378	386	400	464	
Total Non‑financial Assets	4,348	3,680	4,214	4,515	4,849	
Total Assets	4,411	3,743	4,277	4,578	4,912	
4	These figures are those estimated actuals as published in the 1999‑2000 Treasury Portfolio Budget Statements.

Table 3.3:  Budget Cash Flow Statement
	Estimated Actual4	Revised Budget	Estimated	
	1998‑99
$’000	1999‑00
$’000	2000‑01
$’000	2001‑02
$’000	2002‑03
$’000	
Agency Cash Flows						
Operating Activities						
Cash Received						
Appropriations	39,007	55,953	47,898	44,044	37,691	
Sales of goods and services	400	468	468	468	468	
Total Cash Received	39,407	56,421	48,366	44,512	38,159	
Cash Used						
Employees	19,990	22,272	22,072	22,072	19,990	
Suppliers	16,957	32,414	24,890	21,486	17,315	
Other	14	14	14	14	14	
Total Cash Used	36,961	54,700	46,976	43,572	37,319	
Net Cash from Operating Activities	2,446	1,721	1,390	940	840	
Investing Activities						
Cash Received						
Total Cash Received	—	—	—	—	—	
Cash Used						
Purchase of property, plant and equipment	2,446	1,721	1,390	940	840	
Total Cash Used	2,446	1,721	1,390	940	840	
Net Cash from Investing Activities	2,446	1,721	1,390	940	840	
Financing Activities						
Cash Received						
Total Cash Received	—	—	—	—	—	
Cash Used						
Capital user charge paid						
Repayment of borrowings						
Total Cash Used	—	—	—	—	—	
Net Cash from Financing Activities	—	—	—	—	—	
Net increase/decrease in cash held	—	—	—	—	—	
Add cash as at 1 July	13	13	13	13	13	
Cash as at 30 June	13	13	13	13	13	
Administered Cash Flows						
Operating Activities						
Administered Cash Received						
Fines and costs	2,000	9,775	9,775	9,775	9,775	
Authorisation fees	300	200	200	200	200	
Other	50	25	25	25	25	
Total Administered Cash Received	2,350	10,000	10,000	10,000	10,000	
4	These figures are those estimated actuals as published in the 1999‑2000 Treasury Portfolio Budget Statements.

Capital Budget
Table 3.4:  Capital Budget
	Estimated Actual4	Revised Budget	Estimated	
	1998‑99
$’000	1999‑00
$’000	2000‑01
$’000	2001‑02
$’000	2002‑03
$’000	
Funded by Capital Appropriations	—	81	—	—	—	
Funded internally by Agency resources	2,446	1,640	1,390	940	840	
						
Total	2,446	1,721	1,390	940	840	
4	These figures are those estimated actuals as published in the 1999‑2000 Treasury Portfolio Budget Statements.

Notes to the Financial Statements
The ACCC’s 1998‑99, 1999‑2000, 2000‑2001, 2001‑02, 2002‑03 Financial Statements have been prepared in accordance with the accounting principles adopted in preparing the 1997‑98 Financial Statements as published in the 1997‑98 ACCC Annual Report. It should be noted that the accounting policies remain consistent as those published in the Annual Report.
The changes to the ACCC’s financial statements specifically relating to the Additional Estimates are as follows:
Budget Statement of Revenues and Expenses (Budget Operating Statement)
Increase in the Ordinary annual appropriations (net appropriations) and suppliers item.
Budget Cash Flow Statement
Increase in the Appropriations and suppliers item.

Appendix 1
Non‑Appropriation Agency and Administered Revenue
	Budget Estimate	Revised Estimate	
	1999‑2000
$'000	1999‑2000
$'000	
Agency Revenue			
Section 31 of the Financial Management and Accountability Act 1997	
468	
468	
Resources free of charge	55	55	
Total Agency Revenue	523	523	
Administered Revenue			
Miscellaneous	10,000	10,000	
Total Estimated Agency and
Administered Revenue	
10,523	
10,523