Part C

Agency Additional Estimates Statements
Page
Department of the Treasury	9
Australian Office of Financial Management	28
Australian Prudential Regulaton Authority	47
Australian Securities and Investments Commission	66
Australian Taxation Office	83

Department of the Treasury
Section 1:  Overview, variations and measures
Overview
There has been no significant change to the overview included in the 2001‑02 Portfolio Budget Statements (page 7).
Additional estimates and variations to outcomes
The Department of the Treasury is seeking $5.6 million in departmental outputs for HIH related expenses ($5 million) and for a review of competition provisions of the Trade Practices Act ($0.6 million) in Appropriation Bill (No. 3) 2001‑02.
The Department of the Treasury is also seeking $194.998 million in administered expenses for the additional First Home Owners Scheme in Appropriation Bill (No. 4) 2001‑02 and $0.179 million in Administered Capital associated with foreign exchange rate movements in Appropriation Bill (No. 4) 2001‑02.
Explanations for these variations are detailed below.
Measures
Outcome 2  Effective government spending and taxation arrangements

Phase-down of the additional First Home Owners Grant for new homes
On 17 December 2001, the Government announced that the additional $7,000 First Home Owners Grant for new homes (applying to contracts made between 9 March 2001 and 31 December 2001) would be phased-down at a rate of $3,000 for contracts made between 1 January 2002 and 30 June 2002. The Government also announced more liberal commencement and completion requirements for the additional grant.
This measure is expected to cost $50 million over three years.
Outcome 3  Well functioning markets

Review of competition provisions under the Trades Practice Act
The Government announced on 15 October 2001 an independent review of the competition provisions of the Trade Practices Act 1974 and their administration. The $0.6 million will assist Treasury in establishing the review.
Other variations to appropriations
Departmental
Treasury is seeking an additional $5 million for HIH related expenses following the collapse of HIH. The government has agreed to provide additional funds for HIH related expenses including for press advertisements, and the establishment of a call centre and Internet site to advise and assist policyholders on their eligibility for assistance. This results in additional funding for departmental outputs in Appropriation Bill (No. 3) 2001‑02 of $5 million.
Administered
Treasury is seeking an additional $179.998 million for the Additional First Home Owners Scheme (FHOS) as a result of greater than anticipated demand for the program. The Government agreed to fund all expenditure on the additional FHOS incurred by the States and Territories as a result of the Government’s decision to increase the FHOS grant from $7,000 to $14,000 for eligible first home owners contracting between 9 March 2001 and 31 December 2001 to buy or build new homes. This was originally estimated to cost $90 million in 2001-02.
As a result of this and the phase-down measure, additional funds of $194.998 million are required under Appropriation Bill (No.4) 2001-02. 
As a result of exchange rate movements additional funds of $0.179 million are required to cover payments to the European Bank for Reconstruction and Development (EBRD) and the Multilateral Investment Guarantee Agency (MIGA). This results in additional funding of $0.179 million for Administered Capital in Appropriation Bill (No. 4) 2001‑02.

Map 2:  Outcomes and output groups for the agency

Measures:  Agency summary
Table 1.1:  Summary of measures since the 2001-02 Budget

Breakdown of additional estimates by appropriations bill
Table 1.2:  Appropriation Bill (No. 3) 2001‑02

Note:  Variations of Additional Estimates between outcomes are a result of internal reallocations.

Table 1.3:  Appropriation Bill (No. 4) 2001‑02

Variations to revenue from other sources through net annotated (Section 31) receipts
Table 1.5:  Changes to net annotated appropriations (Section 31) receipts
Note:  Variations of non-government revenue between outcomes are a result of revised estimates and internal reallocations.

Section 2:  Revisions to outcomes and outputs
Outcomes and output groups
There has been no change to Treasury’s outcomes and output groups.
Outcome 1 — Sound macroeconomic environment
Revised performance information and level of achievement — 2001‑02
The variation in funding is to a pre‑existing output that will not affect the performance information under Outcome 1 since the 2001‑02 Portfolio Budget Statements (page 15).
Outcome 2 — Effective government spending and taxation arrangements
Revised performance information and level of achievement — 2001‑02
The variation in funding is to a pre-existing output that will not affect the performance information under Outcome 2 since the 2001‑02 Portfolio Budget Statements (page 21).
Outcome 3 — Well functioning markets
Revised performance information and level of achievement — 2001‑02
The variation in funding is to a pre‑existing output that will not affect the performance information under Outcome 3 since the 2001‑02 Portfolio Budget Statements (page 26).

Section 3:  Budgeted Financial Statements
Budgeted departmental statement of financial performance
This statement provides a picture of the expected financial results for the Department of the Treasury by identifying full accrual expenses, revenues and capital use charge, which highlights whether the Department is operating at a sustainable level.
Budgeted departmental statement of financial position
This statement shows the financial position of the Department of the Treasury. It helps decision-makers to track the management of assets and liabilities.
Budgeted departmental statement of cash flows
Budgeted cash flows, as reflected in the statement of cash flows, provide important information on the extent and nature of cash flows by categorising them into expected cash flows from operating activities, investing activities and financing activities.
Departmental capital budget statement
Shows all planned departmental capital expenditure (capital expenditure on non‑financial assets), whether funded through capital appropriations for additional equity or borrowings, or from funds from internal sources.

Table 3.1:  Budgeted departmental statement of financial performance
for the period ended 30 June 2002

Table 3.2:  Budget departmental statement of financial position
as at 30 June 2002

Table 3.3:  Budgeted departmental statement of cash flows
for the period ended 30 June 2002

Table 3.4:  Departmental capital budget statement

Table 3.6:  Note of budgeted administered financial performance
for the period ended 30 June 2002

Table 3.7:  Note of budgeted administered financial position
as at 30 June 2002

Table 3.8:  Note of budgeted administered cash flows
for the period ended 30 June 2002

Table 3.9:  Note of administered capital budget

Notes to the financial statements
Basis of accounting
The Department of the Treasury’s budget statements are prepared in compliance with Australian Accounting Standards, Accounting Guidance Releases and having regard to Statements of Accounting Concepts.
Under the Commonwealth’s accrual budgeting framework, and consistent with Australian Accounting Standards, transactions that agencies control (departmental transactions) are separately budgeted for and reported on from transactions agencies do not have control over (administered transactions). This ensures that agencies are only held accountable for the transactions over which they have control.
Departmental
Departmental assets, liabilities, revenues and expenses in relation to an agency are those which are controlled by the agency. Departmental expenses include employee and supplier expenses and other administrative costs that are incurred by the agency in providing its goods and services.
There are no substantial variations to the notes outlined in the 2001‑02 Portfolio Budget Statements and The Treasury Annual Report 2000‑01.
Administered
Administered items are revenues, expenses, assets or liabilities which are managed by an agency on behalf of the Government according to set Government directions. Administered expenses include subsidies, grants, and personal benefit payments and administered revenues include taxes, fees, fines and excises.
There are no substantial variations to the notes outlined in the 2001‑02 Portfolio Budget Statements and The Treasury Annual Report 2000‑01.

Appendices 1 and 2
Appendix 1
Non-appropriation departmental and administered revenue

Appendix 2
Estimates of expenses from special appropriations