Department of
Communications
Entity resources and planned
performance
9
DEPARTMENT OF COMMUNICATIONS
Section 1: Entity overview and resources ................................................................ 13
1.1
Strategic direction statement .......................................................................... 13
1.2
Entity resource statement ............................................................................... 15
1.3
Budget measures ............................................................................................ 17
Section 2: Outcomes and planned performance ..................................................... 18
2.1
Outcomes and performance information ........................................................ 18
Section 3: Explanatory tables and budgeted financial statements ....................... 27
3.1
Explanatory tables .......................................................................................... 27
3.2
Budgeted financial statements........................................................................ 29
11
Communications Budget Statements
DEPARTMENT OF COMMUNICATIONS
Section 1: Entity overview and resources
1.1 STRATEGIC DIRECTION STATEMENT
Digital technologies and communications services are increasingly pervasive and are
driving rapid transformation. The effective and innovative use of these technologies
and services offers significant benefits for individuals, communities, businesses,
industry and governments. Realising their full potential underpins Australia’s future
economic prosperity.
The purpose of the Department of Communications is to promote an innovative and
competitive communications sector, through policy development, advice and
programme delivery, so all Australians can realise the full potential of digital
technologies and communications services.
The Department achieves its outcome by delivering a range of initiatives.
Significant ongoing functions include:
 providing strategic advice on developments in digital technologies, networks and
services

advising and collaborating on the use of technologies to boost government
productivity and enhance government online capabilities

improving the quality and number of government systems, products, services and
data sets that Australians can access online

providing strategic advice and policy leadership to achieve a fast and affordable
new broadband network

collaborating to develop policies that deliver more efficient, trusted and secure
enabling digital infrastructure

reforming spectrum policy arrangements to ease the compliance burden on users
and improve accessibility for new technologies

assessing regulatory frameworks and advising on regulatory reform and
deregulation options to promote competition, consumer safeguards, efficient and
responsive portfolio agencies, and reduced regulatory burden

supporting the Ministerial Advisory Council on Communications in its role of
providing advice on deregulation options across the Portfolio

analysing community expectations of quality, standard and availability of content
and communications services

Undertaking research through the Bureau of Communications Research and
advising on sectoral developments to inform strategic policy directions
13
Communications Budget Statements

delivering the Mobile Black Spot Programme to further expand reliable mobile
phone coverage and competition in outer metropolitan, regional and remote
communities

entering into contracts, and making grants, to support the provision of public
interest telecommunications services for all Australians including: standard
telephone services; payphones; emergency call services; and the National Relay
Service (NRS), which assists people who are deaf or have a hearing and/or speech
impairment to access telephone services.
14
Communications Budget Statements
1.2 ENTITY 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 Communications resource statement — Budget
estimates for 2015-16 as at Budget May 2015
Actual
Available
Appropriation
2014-15
Proposed at
2015-16
Budget
Total
2015-16
estimate
$'000
Estimate of
prior year
amounts
available in
2015-16
$'000
$'000
$'000
25,324
95,472
615
121,411
9,695
–
–
9,695
–
88,663
–
88,663
9,695
88,663
–
98,358
39,481
130,791
1,349,074
1,519,346
–
–
–
–
–
199,891
1,347,683
1,547,574
–
199,891
1,347,683
1,547,574
Total ordinary annual services A
Departmental non-operating
Total
Administered non-operating
Prior year administered
Appropriation
Administered assets and liabilities
Payments to corporate entities non-operating
Total
1,640,757
9,695
1,636,237
1,645,932
–
–
–
–
2,160,555
3,229,445
756,000
–
–
7,365,908
756,000
7,365,908
50,000
5,440,000
–
756,000
20,000
7,385,908
20,000
8,141,908
Total other services B
5,440,000
756,000
7,385,908
8,141,908
Total available annual
appropriations
7,080,757
765,695
9,022,145
9,787,840
Total appropriations excluding
special accounts
7,080,757
765,695
9,022,145
9,787,840
Ordinary annual services(a)
Departmental appropriation
Prior year departmental
Appropriation(b)
Departmental appropriation(c)(d)
s74 Retained revenue receipts(e)
Total
Administered expenses
Prior year administered
appropriation
Outcome 1
Payments to corporate entities(f)
Total
15
Communications Budget Statements
Table 1.1: Department of Communications resource statement — Budget
estimates for 2015-16 as at Budget May 2015 (continued)
Actual
Available
Appropriation
2014-15
Estimate
prior year
amounts
available in
2015-16
Proposed at
2015-16
Budget
Total
2015-16
estimate
$'000
$'000
$'000
$'000
133
–
133
32,663
–
32,663
–
312,207
312,207
32,663
312,207
344,870
7,080,890
798,358
9,334,352
10,132,710
(1,399,074)
–
(1,467,683)
(1,467,683)
5,681,816
798,358
7,866,669
8,665,027
Special accounts
Opening balance(g)
Appropriation receipts
Total special accounts C
Total resourcing
A+B+C
Less appropriations drawn from
annual or special appropriations
above and credited to special
accounts and/or payments to
corporate entities through
annual appropriations
Total net resourcing for
Communications
(a)
(b)
(c)
(d)
(e)
(f)
(g)
Appropriation Bill (No. 1) 2015-2016.
Estimated adjusted balance carried forward from previous year.
Includes an amount of $4.2m in 2015-16 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’.
2014-15 figure includes funding provided through Appropriation Bill (No.5) 2014-2015.
Estimated Retained revenue receipts under section 74 of the Public Governance, Performance and
Accountability (PGPA) Act 2013.
‘Corporate entities’ are corporate Commonwealth entities and Commonwealth companies as defined
under the PGPA Act 2013.
Estimated opening balance for special accounts (less ‘Special Public Money’ held in accounts like Other
Trust Monies accounts (OTM), Services for other Government and Non-agency Bodies accounts
(SOG), or Services for Other Entities and Trust Moneys accounts (SOETM)). For further information on
special accounts, see Table 3.1.2.
Note: All figures are GST exclusive.
Third party payments from and on behalf of other entities
Payments made to corporate entities within the Portfolio:
Australian Broadcasting Corporation
Special Broadcasting Service Corporation
16
2014-15
$'000
2015-16
$'000
1,113,215
285,859
1,084,413
283,270
Communications Budget Statements
1.3 BUDGET MEASURES
Budget measures in Part 1 relating to the Department of Communications are detailed
in Budget Paper No. 2 and are summarised below.
Table 1.2: Department of Communications 2015-16 Budget measures
Part 1: Measures announced since the 2014-15 Mid-Year Economic and Fiscal
Outlook (MYEFO)(a)
Programme
2014-15
$'000
Expense measures
Digital Transformation Agenda Portfolio Contributions
Departmental expenses
1.1
–
Administered expenses
(2,654)
Total
(2,654)
Administered Programme
Indexation Pause – two year
extension
Administered expenses
1.1
–
Total
–
Total expense measures
Departmental
–
Administered
(2,654)
Total
(2,654)
Prepared on a Government Finance Statistics (fiscal) basis.
(a) A minus sign before an estimate indicates a reduction.
increase.
17
2015-16
$'000
2016-17
$'000
2017-18
$'000
2018-19
$'000
(635)
–
(635)
(631)
–
(631)
(635)
–
(635)
(641)
–
(641)
–
–
–
–
(386)
(386)
(755)
(755)
(635)
–
(635)
(631)
–
(631)
(635)
(386)
(1,021)
(641)
(755)
(1,396)
No sign before an estimate indicates an
Communications Budget Statements
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 entities achieve the intended results of their
outcome statements. Entities 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 Communications in achieving government outcomes.
Outcome 1: Promote an innovative and competitive communications sector,
through policy development, advice and program delivery, so all Australians
can realise the full potential of digital technologies and communications
services
Outcome 1 strategy
The Department will deliver its outcome through a single programme: Digital
Technologies and Communications Services.
The Department’s strategy for delivering its outcome is to provide strategic advice on,
and administer projects and initiatives, to:

enhance digital productivity—advising Government on the opportunities arising
from the innovative adoption and use of digital technologies, and supporting
government, business and the community to maximise these opportunities

expand digital infrastructure—advising Government on the necessary market
settings to deliver competitive and efficient digital infrastructure to drive growth
in the broader economy

promote efficient communications markets—advising Government on the
necessary market settings to promote competition, while ensuring access to basic
services, making available socially valuable content, and safeguarding consumers
from inappropriate content and unfair dealing.
This is supported through research to identify, assess and explain developments in
digital technologies and communications networks and services.
18
Communications Budget Statements
Outcome expense statement
Table 2.1 provides an overview of the total expenses for Outcome 1, by programme.
Table 2.1: Budgeted expenses for Outcome 1
Outcome 1:
Promote an innovative and competitive communications sector,
through policy development, advice and program delivery, so all
Australians can realise the full potential of digital technologies and
communications services.
Programme 1.1: Digital Technologies and Communications
Services
Administered expenses
Ordinary annual services (Appropriation Bill No. 1)
Expenses not requiring appropriation in the Budget year (a)
Departmental expenses
Departmental appropriation (b)
Expenses not requiring appropriation in the Budget year (a)
Total for Programme 1.1
Outcome 1 Totals by appropriation type
Administered Expenses
Ordinary annual services (Appropriation Bill No. 1)
Expenses not requiring appropriation in the Budget year (a)
Departmental expenses
Departmental appropriation (b)
Expenses not requiring appropriation in the Budget year (a)
Total expenses for Outcome 1
2014-15
Estimated
actual
expenses
$'000
2015-16
Estimated
Expenses
128,131
14,592
197,114
245,352
91,992
6,105
240,820
84,426
5,941
532,833
128,131
14,592
197,114
245,352
91,992
6,105
240,820
84,426
5,941
532,833
$'000
2014-15
2015-16
Average Staffing Level (number)
430
408
(a) Expenses not requiring appropriation in the Budget year is made up of issuing of indefeasible rights of
use, depreciation expense, amortisation expense, exchange rate movements, inventory expense and
audit fees.
(b) Departmental Appropriation combines "Ordinary Annual services (Appropriation Act No. 1, Bill (No. 3)
and Bill (no. 5)" and Revenue from independent sources (s74).
Note: Departmental appropriation splits and totals are indicative estimates and may change in the course of
the budget year as government priorities change.
19
Communications Budget Statements
Contributions to Outcome 1
Programme 1.1: Digital Technologies and Communications Services
Programme objective
The Department provides strategic advice
programmes and initiatives that promote
communications sector so all Australians can
technologies and communications services.
facilitating:
on and effectively administers
an innovative and competitive
realise the full potential of digital
This includes advising on and

opportunities arising from the innovative adoption and use of digital
technologies

the delivery of competitive and efficient digital infrastructure to drive growth in
the broader economy

promotion of competition, while ensuring access to basic services, making
available socially valuable content, and safeguarding consumers from
inappropriate content and unfair dealing.
Linked to:
Elements of the following administered items in the programme are delivered by
other agencies:

Australia’s new broadband network is being rolled out by nbn co limited (nbn),
which is planning, building and operating the network.

The Australian Government’s online safety measures are also delivered through
the Australian Communications and Media Authority (ACMA), the Australian
Federal Police, the Attorney-General’s Department and the Office of the
Commonwealth Director of Public Prosecutions. From 1 July 2015, the ACMA’s
and most of the Department’s online safety functions will be subsumed by the
Children’s e-Safety Commissioner, which will be an independent statutory
office within the ACMA.

The Australian Government’s Cybersecurity programmes are also delivered
through the Attorney-General’s Department, the ACMA, the Australian Federal
Police, the Australian Government Information Management Office and the
Defence Signals Directorate.

The ICT Centre of Excellence programme is also delivered through the
Australian Research Council and provides funding to National ICT Australia
Ltd (NICTA).

The ACMA recoups the cost of the Consumer Representation Grants Program
allocated to the Australian Communications Consumer Action Network
(ACCAN), under section 593 of the Telecommunications Act 1997, from licensed
carriers, under the Telecommunications (Carrier Licence Charges) Act 1997.

The ACMA is responsible for determining and collecting telecommunication
carriers’ contributions to the Telecommunications Industry Levy, and for
20
Communications Budget Statements
enforcing compliance with the USO and emergency call service requirements.
The Department works closely with the ACMA on a range of matters and provides
advice in relation to the national broadcasters.
Programme expenses

Overall programme expenses significantly increase from 2015-16, reflecting the
special account expenses relating to the Telecommunications Universal Service
Special Account, which will be transferred from TUSMA to the Department.

Apart from these special account expenses, other programme expenses decrease
in 2015-16 and across the forward years. This reflects the conclusion of funding
for a number of programmes including: ICT Centre of Excellence; Digital
Television Switchover – Spectrum Restacking Assistance; elements of the Digital
Productivity programme; and the Regional Equalisation Plan. The phasing of
the Government’s commitment to the Mobile Black Spot Programme also
impacts on the forward estimates profile.
21
Communications Budget Statements
Programme Expenses 1.1
Annual administered expenses:
Community Broadcasting Program
Consumer Representation Grants
Program
Cybersafety
Digital Productivity
Digital Television Switchover
Digital Television Switchover Spectrum Restacking Assistance
ICT Centre of Excellence
International Organisation
Contributions
Mobile Black Spot Programme
Regional Equalisation Plan
Spectrum - Assistance to Broadcasters
for Electronic News Gathering
Stay Smart Online
Expenses not requiring appropriation
in the Budget year(a)
International Organisation
Contributions
Regional Backbone Blackspots
Program(b)
Special Account Expenses:
Public Interest Telecommunications
Services Special Account(c)
National Relay Service(c)
Universal Service Obligation(c)
Other Public Interest Services(c)
Annual departmental expenses:
Programme support
Expenses not requiring appropriation in
the Budget year
2014-15
Estimated
actual
$'000
2015-16
Budget
$'000
2016-17
Forward
estimate
$'000
2017-18
Forward
estimate
$'000
2018-19
Forward
estimate
$'000
17,359
16,880
15,491
15,492
15,492
2,164
331
13,852
11,719
2,163
—
3,754
11,997
2,165
—
2,396
10,790
2,164
—
1,500
11,016
2,164
—
1,500
11,183
46,983
21,435
—
21,000
—
—
—
—
—
—
3,665
—
1,000
3,827
40,000
1,000
3,827
30,000
1,000
3,844
30,000
—
3,849
—
—
9,103
520
—
500
—
500
—
500
—
500
2,583
2,660
2,777
2,777
2,790
12,009
11,085
9,353
7,990
7,990
—
—
—
—
327,600
20,000
270,000
37,600
362,200
20,000
270,000
72,200
337,600
20,000
270,000
47,600
327,600
20,000
270,000
37,600
91,992
84,426
83,689
84,524
85,362
6,105
5,941
5,650
5,158
4,502
(d)
Total programme expenses
240,820 532,833
529,838
502,565
462,932
(a) Expenses not requiring appropriation in the Budget year is made up of issuing of indefeasible rights of
use, depreciation expense, amortisation expense, exchange rate movements, inventory expense and
audit fees.
(b) This programme was previously called “National Broadband Network – Regional Backbone Blackspots
Program”.
(c) The special account expenses commence from 2015-16 reflecting the transfer of TUSMA functions to
the Department.
(d) The expenses above do not include the equity funding to be provided to nbn over the period 2014-15 to
2018-19, which is as follows:
2014-15
2015-16
2016-17
2017-18
2018-19
Estimated
Budget
Forward
Forward
Forward
actual $b
$b
Estimate $b
Estimate $b
Estimate $b
Total
4.9
7.8
22
8.3
0.0
0.0
Communications Budget Statements
Programme 1.1 Deliverables
ENHANCING DIGITAL PRODUCTIVITY

Research, analysis and advice on digital technologies, including how
developments can enhance productivity, competition and innovation across the
economy, and implications and recommendations for government policy.

Leadership, strategic policy advice and coordination, and support to maximise
the productivity benefits across the economy from digital services and
technologies, including:

advising on necessary settings to maximise the benefits from use of open
data

producing independent research on developments across the
communications and digital technologies sectors to inform policy advice
and development

funding NICTA through the ICT Centre of Excellence programme to
support ICT research to advance the development of the digital economy

developing national policies, standards and coordinated approaches to
spatial data sets, including geocoded national address data, to support
initiatives such as the rollout of Australia’s new broadband network and the
commitment to open Data principles

working with other government agencies to implement technologies that
boost productivity and improve government online systems, products,
services and data sets.
EXPANDING DIGITAL INFRASTRUCTURE

Strategic advice and policy leadership to achieve the Government’s plan for
Australia’s new broadband network, including advice on implementation of the
initiative and support for the Minister for Communications in his role as
Shareholder Minister of nbn.

Working with nbn and industry to ensure consumers and small business receive
useful information about the rollout of Australia’s new broadband network.

Advice on investment in, and access to, communications infrastructure and on
infrastructure resilience and security.

Development and implementation of the Mobile Black Spot Programme to
expand reliable mobile phone coverage and competition in outer metropolitan,
regional and remote communities.

Reforming spectrum policy arrangements to ease the compliance burden on
users and improve accessibility for new technologies.

Collaboration across government, industry, research institutions and the
community to develop policies that deliver more efficient, trusted and secure
enabling digital infrastructure.
23
Communications Budget Statements
PROMOTING EFFICIENT COMMUNICATIONS MARKETS

Implementation and monitoring of, and improvements to, the regulatory
framework for Australia’s new broadband network, including regulations
applying to nbn operations and Telstra’s Structural Separation and Migration
Plan.

Support the Minister on ABC and SBS policy and funding matters, the
transmission of ABC and SBS services and on ABC and SBS board
appointments.

Provision of Community Broadcasting Program funding to assist community
broadcasters, including with the delivery of community radio services.

Advice to the Minister on appropriate consumer safeguards relating to the
provision of content and communications services.

Advice to the Minister on the production and provision of content, including
media diversity and ownership.

In consultation with stakeholders, assess the extent to which the current
regulatory frameworks operating in the communications, broadcasting and
media sectors remain appropriate, particularly given technological changes.

Supporting consumer interests and protection against harm through policy
advice and:

funding for the Australian Communications Consumer Action Network
through the Consumer Representation Grants Program

advice on cybersecurity initiatives to inform and educate Australian
consumers and small businesses about managing the risk of financial fraud
and loss of personal information online.

Establishment of the Office of the Children’s e-Safety Commissioner by 1 July
2015.

Support for, the Ministerial Advisory Council on Communications, which is
tasked with providing advice on deregulation options across the Portfolio.

Advice on the postal sector and protection of the Australian Government’s
interest as a shareholder of Australia Post.

Implement and manage contractual arrangements for the delivery of
telecommunications universal services.
Deliverables
2014-15
Estimated
actual
2015-16
Budget
2016-17
Forward
estimate
2017-18
Forward
estimate
2018-19
Forward
estimate
-
100-120
75-90
75-90
-
Mobile Black Spot Programme
Mobile base stations
24
Communications Budget Statements
Programme 1.1 Key performance indicators
The Department’s key performance indicators reflect its strategic direction and
priorities as outlined in the Corporate Plan 2014–17.
ENHANCING DIGITAL PRODUCTIVITY

Policy advice on maximising the productivity benefits across the economy
arising from use and application of digital services and technology.

Timely, effective and evidence-based policy advice on e-government capabilities
and readiness.

Progress on the increased number of Government data sets accessible online.

Take-up of, and feedback on, initiatives and projects to maximise productivity
benefits from digital services and technologies, including Digital Enterprises,
Digital Business Kits and Digital Careers.

Quality and contribution of research produced by the Department to identify,
assess and explain developments in technologies and communications networks
and services.

NICTA’s contribution to the commercialisation of ICT and online innovation
and the development of ICT and online research and commercialisation skills.
EXPANDING DIGITAL INFRASTRUCTURE

High-quality, strategic and timely policy advice on:

investment in, and access to, communications infrastructure

deployment of communications infrastructure including the implementation
of Australia’s new broadband network.

Successful policy leadership and advice on monitoring of, and information
about, expanding digital infrastructure including Australia’s new broadband
network rollout and improved mobile coverage in regional Australia.

The Mobile Black Spot Programme will receive significant co-contributions from
industry, state and territory governments, local councils and third parties and
facilitate competition in the provision of mobile services in outer metropolitan,
regional and remote communities.

Successful leadership and collaboration across government, industry, research
institutions and the community to develop policies that deliver more efficient,
trusted and secure enabling digital infrastructure.

Advice on further opportunities for making spectrum available for new services.
PROMOTING EFFICIENT COMMUNICATIONS MARKETS

High-quality, strategic and timely advice on necessary market settings to
promote competition, while ensuring access to basic services, making available
socially valuable content, and safeguarding consumers from inappropriate
content and unfair dealing.

Effective regulatory frameworks for, and information about open, competitive
and efficient communications markets, consumer interests, and online safety
25
Communications Budget Statements
and security.

Contribution to the broad objective that all Australians have access to a range of
free-to-air and subscription television and radio services, through effective
policy and effectively administered funding.

Regular, timely collaboration and engagement on portfolio deregulation
options, through the effective establishment and support for the Ministerial
Advisory Council on Communications.

Office of the Children’s e-Safety Commissioner is established to promote a
coordinated approach to online safety of children.

Delivery of public interest services within standards, rules and benchmarks
outlined in contracts.
Key Performance Indicators
National Innovation
Level of commercial revenue generated
by the ICT Centre of Excellence ($m)
PhD candidates sponsored by the
ICT Centre of Excellence
Number of Australian jobs in ICT
Centre of Excellence spin outs
2014-15
Estimated
actual
2015-16
Budget
2016-17
Forward
estimate
2017-18
Forward
estimate
2018-19
Forward
estimate
16.0
10.8
-
-
-
290
290
-
-
-
110
115
-
-
-
26
Communications Budget Statements
Section 3: Explanatory tables and budgeted financial
statements
Section 3 presents explanatory tables and budgeted financial statements which provide
a comprehensive snapshot of entity finances for the 2015-16 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 government indigenous
expenditure.
3.1 EXPLANATORY TABLES
3.1.1 Movement of administered funds between years
Administered funds can be provided for a specified period, for example under annual
Appropriation Acts. Funds not used in the specified period with the agreement of the
Finance Minister may be moved to a future year. Table 3.1.1 shows the movement of
administered funds approved between years.
Table 3.1.1: Movement of administered funds between years
2014-15
2015-16
2016-17
2017-18
2018-19
$'000
$'000
$'000
$'000
$'000
Outcome 1:
Other Public Interest Services
-
(20,000)
10,000
10,000
-
Mobile Black Spot Programme
(10,000)
10,000
-
-
-
Total Movement of
Administered Funds
(10,000)
(10,000)
10,000
10,000
Figures displayed as a negative (-) represent a decrease in funds and a positive reflect an increase in funds.
27
Communications Budget Statements
3.1.2 Special accounts
Special 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
section 78 of the PGPA Act or under separate enabling legislation (section 80 of the
PGPA Act refers). Table 3.1.2 shows the expected additions (receipts) and reductions
(payments) for each account used by the Department of Communications.
Table 3.1.2: Estimates of special account flows and balances
Outcome
Public Interest Telecommunications
Services Special Account – s80
PGPA(a) Act (A) and (D) 2015-16(b)
Public Interest
Telecommunications Services
Special Account – s80 PGPA(a)
Act (A) and (D) 2014-15(b)
Australia New Zealand Land
Information - s80 PGPA(a) Act
(A) 2015-16
Australia New Zealand Land
Information - s80 PGPA(a) Act
(A) 2014-15
Total special accounts
2015-16 Budget estimate
1
Opening
balance
$'000
Receipts
Payments
Adjustments
$'000
$'000
$'000
Closing
balance
$'000
32,560
312,207
328,907
–
15,860
–
–
–
32,560
32,560
103
–
43
–
60
133
–
30
–
103
32,663
312,207
328,50
–
15,920
1
Total special accounts
2014-15 estimated actual
133
–
30
32,560
32,663
(A) = Administered (D) = Departmental
(a) Public Governance, Performance and Accountability Act 2013
(b) The operation of this account will transfer to the Department of Communications from
Telecommunications Universal Service Management Agency (TUSMA) from 1 July 2015 following the
passage of the Telecommunications Legislation Amendment (Deregulation) Act 2015.
3.1.3 Australian Government Indigenous expenditure (AGIE)
The AGIE table consolidates Indigenous specific spending to provide an overview of
the spending commitment for the Department of Communications.
Table 3.1.3: Australian Government Indigenous expenditure
Approp
Bill
No. 1
$'000
Approp
Bill
No. 2
$'000
Special
approp
Total
approp
Other
Total
$'000
$'000
$'000
$'000
1,198
1,200
1,198
1,200
1,198
1,200
-
-
1,198
1,200
1,198
1,200
1,198
1,200
-
1,198
1,200
1,198
1,200
1,198
1,200
Programme
Department of Communications
Outcome 1
Administered 2015-16
Administered 2014-15
Total outcome 2015-16
Total outcome 2014-15
Total AGIE 2015-16
Total AGIE 2014-15
28
1.1
1.1
Communications Budget Statements
3.2 BUDGETED FINANCIAL STATEMENTS
3.2.1 Differences in entity resourcing and financial statements
There are no significant differences between the resource information presented in the
Budget Papers and Portfolio Budget Statements as a result of differences between
Australian Accounting Standards (AAS) and Government Finance Statistics (GFS).
3.2.2 Analysis of budgeted financial statements
Departmental Financial Statements
Comprehensive Income Statement (showing net cost of services)
Revenue from Government in 2015-16 has decreased from the 2014-15 Portfolio
Additional Estimates Statements, mainly reflecting the transfer of Communications
functions to the Digital Transformation Office.
Schedule of Administered Activity
Schedule of income and expenses administered on behalf of Government
Administered expenses in 2015-16 have decreased from the 2014-15 Portfolio
Additional Estimates Statements predominantly due to the movement of funds.
Twenty million was moved from 2015-16 into the forward years for the
Telecommunications Universal Service Special Account for Other Public Interest
Services and $10 million was moved from 2014-15 to 2015-16 for the Mobile Black Spot
Programme. Additionally, savings of $8.5 million were returned to budget from the
Digital Television Switchover - Spectrum Restacking Assistance programme in
2015-16.
29
Communications Budget Statements
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
EXPENSES
Employee benefits
Suppliers
Depreciation and amortisation
Finance costs
Total expenses
LESS:
OWN-SOURCE INCOME
Own-source revenue
Sale of goods and rendering of services
Total own-source revenue
Gains
Other gains
Total gains
2014-15
Estimated
actual
$'000
2015-16
Budget
$'000
2016-17
Forward
estimate
$'000
2017-18
Forward
estimate
$'000
2018-19
Forward
estimate
$'000
65,015
27,304
5,715
63
98,097
57,815
26,938
5,551
63
90,367
58,849
25,168
5,260
62
89,339
59,968
24,884
4,768
62
89,682
61,341
24,345
4,112
66
89,864
615
615
–
–
–
–
–
–
–
–
390
390
390
390
390
390
390
390
390
390
Total own-source income
Net cost of (contribution by)
Services
1,005
390
390
390
390
97,092
89,977
88,949
89,292
89,474
Revenue from Government
91,377
84,426
83,689
84,524
85,362
Surplus (Deficit)
OTHER COMPREHENSIVE INCOME
Total other comprehensive income
(5,715)
(5,551)
(5,260)
(4,768)
(4,112)
(loss)
Total comprehensive income (loss)
–
(5,715)
–
(5,551)
–
(5,260)
–
(4,768)
–
(4,112)
(a)
Total comprehensive income (loss)
attributable to the Australian
Government
(5,715)
(5,551)
(5,260)
(4,768)
Note: Impact of Net Cash Appropriation Arrangements
Total Comprehensive Income (loss)
excluding depreciation/amortisation
expenses previously funded through
–
–
–
–
revenue appropriations.
less depreciation/amortisation
Expenses previously funded
through revenue Appropriations
5,715
5,551
5,260
4,768
Total Comprehensive Income (loss) as per the Statement of
Comprehensive Income
(5,715)
(5,551)
(5,260)
(4,768)
Prepared on Australian Accounting Standards basis.
(a) This operating loss relates to depreciation expenses, for which agencies receive no funding.
30
(4,112)
–
4,112
(4,112)
Communications Budget Statements
Table 3.2.2: Budgeted departmental balance sheet (as at 30 June)
2014-15
Estimated
actual
$'000
2015-16
Budget
$'000
2016-17
Forward
estimate
$'000
2017-18
Forward
estimate
$'000
2018-19
Forward
Estimate
$'000
750
9,732
10,482
750
8,990
9,740
750
8,912
9,662
750
9,001
9,751
750
9,090
9,840
5,623
4,579
9,309
1,311
20,822
31,304
4,689
5,416
8,092
1,292
19,489
29,229
3,721
6,485
6,972
1,207
18,385
28,047
3,619
6,308
6,781
1,194
17,902
27,653
3,668
6,392
6,872
1,168
18,100
27,940
3,047
465
2,386
5,898
3,015
630
2,345
5,990
2,848
783
2,381
6,012
2,820
736
2,399
5,955
2,775
552
2,423
5,750
18,274
3,967
22,241
28,139
3,165
16,291
1,745
18,036
24,026
5,203
16,576
1,809
18,385
24,397
3,650
16,884
1,874
18,758
24,713
2,940
17,262
1,939
19,201
24,951
2,989
28,856
9,834
33,192
9,834
(35,750)
2,940
2,940
(40,037)
2,989
2,989
ASSETS
Financial assets
Cash and cash equivalents
Trade and other receivables
Total financial assets
Non-financial assets
Land and buildings
Property, plant and equipment
Intangibles
Other non-financial assets
Total non-financial assets
Total assets
LIABILITIES
Payables
Suppliers
Lease Incentives
Other payables
Total payables
Provisions
Employee provisions
Other
Total provisions
Total liabilities
Net assets
EQUITY(a)
Parent entity interest
Contributed equity
16,080
20,317
24,558
Reserves
9,834
9,834
9,834
Retained surplus
(accumulated deficit)
(22,749)
(24,948)
(30,742)
3,165
5,203
3,650
Total parent entity interest
Total Equity
3,165
5,203
3,650
Prepared on Australian Accounting Standards basis.
(a) Equity’ is the residual interest in assets after deduction of liabilities.
31
Communications Budget Statements
Table 3.2.3: Departmental statement of changes in equity — summary of
movement (Budget year 2015-16)
Retained
earnings
Opening balance as at 1 July 2015
Balance carried forward from
previous period
Adjusted opening balance
Contributed
equity/
capital
$'000
Total
equity
$'000
Asset
revaluation
reserve
$'000
(22,749)
(22,749)
9,834
9,834
16,080
16,080
3,165
3,165
–
–
(5,551)
–
–
(5,551)
–
–
–
4,237
–
4,237
4,237
3,352
7,589
9,834
20,317
5,203
9,834
20,317
5,203
Comprehensive income
Surplus (deficit) for the period
(5,551)
Total comprehensive income
Of which:
Attributable to the Australian Government
(5,551)
Transactions with owners
Contributions by owners
Departmental Capital Budget (DCBs)
–
Other
3,352
Sub-total transactions with owners
3,352
Estimated closing balance
as at 30 June 2016
(24,948)
Closing balance attributable to the
Australian Government
(24,948)
Prepared on Australian Accounting Standards basis.
32
$'000
Communications Budget Statements
Table 3.2.4: Budgeted departmental statement of cash flows (for the period
ended 30 June)
OPERATING ACTIVITIES
Cash received
Appropriations
Goods and services
Other
Total cash received
Cash used
Employees
Suppliers
Total cash used
Net cash from (used by)
operating activities
INVESTING ACTIVITIES
Cash used
Purchase of property, plant,
equipment and intangibles
Total cash used
Net cash from (used by)
investing activities
FINANCING ACTIVITIES
Cash received
Contributed equity
Total cash received
2014-15
Estimated
actual
$'000
2015-16
Budget
$'000
2016-17
Forward
estimate
$'000
2017-18
Forward
estimate
$'000
2018-19
Forward
estimate
$'000
100,713
615
30
101,358
84,426
–
–
84,426
83,689
–
–
83,689
84,524
–
–
84,524
85,362
–
–
85,362
74,005
27,179
101,184
56,039
28,387
84,426
59,378
24,311
83,689
59,729
24,795
84,524
62,096
23,266
85,362
174
–
–
–
–
6,458
6,458
4,237
4,237
4,241
4,241
4,298
4,298
4,336
4,336
(6,458)
(4,237)
(4,241)
(4,298)
(4,336)
6,458
6,458
4,237
4,237
4,241
4,241
4,298
4,298
4,336
4,336
4,237
4,241
4,298
4,336
–
–
–
–
750
750
750
750
750
750
750
750
Net cash from (used by)
financing activities
6,458
Net increase (decrease)
in cash held
174
Cash and cash equivalents at the
beginning of the reporting period
576
Cash and cash equivalents at the
end of the reporting period
750
Prepared on Australian Accounting Standards basis.
33
Communications Budget Statements
Table 3.2.5: Departmental capital budget statement (for the period ended
30 June)
NEW CAPITAL APPROPRIATIONS
Capital budget–Bill 1 (DCB)
Equity injections–Bill 2
Total new capital appropriations
Provided for:
Purchase of non-financial assets
Other Items
Total Items
PURCHASE OF NON-FINANCIAL
ASSETS
Funded by capital appropriations
Funded by capital appropriation - DCB
TOTAL
2014-15
Estimated
actual
$'000
2015-16
Budget
$'000
2016-17
Forward
estimate
$'000
2017-18
Forward
estimate
$'000
2018-19
Forward
estimate
$'000
4,095
6,400
10,495
4,237
–
4,237
4,241
–
4,241
4,298
–
4,298
4,336
–
4,336
4,495
6,000
10,495
4,237
–
4,237
4,241
–
4,241
4,298
–
4,298
4,336
–
4,336
400
–
–
–
–
6,058
6,458
4,237
4,237
4,241
4,241
4,298
4,298
4,336
4,336
4,237
4,237
4,241
4,241
4,298
4,298
4,336
4,336
RECONCILIATION OF CASH
USED TO ACQUIRE ASSETS
TO ASSET MOVEMENT TABLE
Total purchases
6,458
Total cash used to acquire assets
6,458
Prepared on Australian Accounting Standards basis.
34
Communications Budget Statements
Table 3.2.6: Statement of asset movements (Budget year 2015-16)
As at 1 July 2015
Gross book value
Accumulated depreciation/amortisation
and impairment
Opening net book balance
Land and
Buildings
Property, plant
and equipment
$'000
Computer
software
and
intangibles
$'000
$'000
$'000
10,110
8,641
23,360
42,111
(4,487)
5,623
(4,062)
4,579
(14,051)
9,309
(22,600)
19,511
2,052
2,052
1,377
1,377
4,237
4,237
(1,215)
(1,215)
(2,594)
(2,594)
(5,551)
(5,551)
10,693
24,737
46,348
(5,277)
5,416
(16,645)
8,092
(28,151)
18,197
CAPITAL ASSET ADDITIONS
Estimated expenditure on
new or replacement assets
By purchase–appropriation ordinary
annual services
808
Total additions
808
Other movements
Depreciation/amortisation expense
(1,742)
Total other movements
(1,742)
As at 30 June 2016
Gross book value
10,918
Accumulated depreciation/amortisation
and impairment
(6,229)
Closing net book balance
4,689
Prepared on Australian Accounting Standards basis.
35
Total
Communications Budget Statements
Table 3.2.7: Schedule of budgeted income and expenses administered on behalf
of Government (for the period ended 30 June)
2014-15
Estimated
actual
$'000
2015-16
Budget
2016-17
Forward
estimate
$'000
2017-18
Forward
Estimate
$'000
2018-19
Forward
estimate
$'000
EXPENSES ADMINISTERED ON
BEHALF OF GOVERNMENT
Suppliers(a)
Grants
Depreciation and amortisation
Payments to Corporate Entities
Other expenses
13,268
115,217
7,990
1,349,074
6,248
331,195
96,794
7,990
1,347,683
6,487
364,063
61,842
7,990
1,292,754
6,604
338,100
60,172
7,990
1,302,941
6,621
328,100
30,339
7,990
1,313,477
6,639
Total expenses administered
on behalf of Government
1,491,797
1,790,149
1,733,253
1,715,824
1,686,545
1,634
Total non-taxation revenue
808
1,529
2,337
1,529
3,163
1,946
1,529
3,475
1,400
1,529
2,929
1,049
1,529
2,578
Total own-source revenues
administered on behalf of Government
2,337
3,163
3,475
2,929
2,578
$'000
LESS:
OWN-SOURCE INCOME
Own-source revenue
Non-taxation revenue
Interest
Rental income
Total own-sourced income
administered on behalf of Government
2,337
3,163
3,475
2,929
2,578
1,489,460
1,786,986
1,729,778
1,712,895
1,683,967
Surplus (Deficit)
(1,489,460)
(1,786,986)
(1,729,778)
(1,712,895)
(1,683,967)
Total comprehensive income (loss)
(1,489,460)
(1,786,986)
(1,729,778)
(1,712,895)
(1,683,967)
Net Cost of (contribution by) services
Prepared on Australian Accounting Standards basis.
(a) Increase from 2015-16 reflects the Department of Communications taking over responsibility for the
National Relay Service, Universal Service Obligation and Other Public Interest initiatives from the
Telecommunications Universal Service Management Agency (TUSMA).
36
Communications Budget Statements
Table 3.2.8: Schedule of budgeted assets and liabilities administered on behalf
of Government (as at 30 June)
$'000
2016-17
Forward
estimate
$'000
2017-18
Forward
estimate
$'000
2018-19
Forward
Estimate
$'000
73,221
11,541,921
11,623,142
124,524
16,136,084
16,260,608
103,116
24,461,731
24,564,847
83,037
24,461,731
24,544,768
62,956
24,461,731
24,524,687
171,084
7,144
178,228
163,094
4,166
167,260
155,104
2,803
157,907
147,114
2,817
149,931
139,124
2,821
141,945
11,801,370
16,427,868
24,722,754
24,694,699
24,666,632
–
5,743
17,463
23,206
342,870
5,743
15,934
364,547
328,900
5,743
14,405
349,048
328,900
5,743
12,876
347,519
328,900
5,743
11,347
345,990
on behalf of Government
23,206
Net assets/(liabilities)
11,778,164
Prepared on Australian Accounting Standards basis.
364,547
16,063,321
349,048
24,373,706
347,519
24,347,180
345,990
24,320,642
ASSETS
Financial assets
Trade and other receivables
Other investments
Total financial assets
Non–financial assets
Property, plant and equipment
Other non–financial assets
Total non-financial assets
Total assets administered
on behalf of Government
LIABILITIES
Payables
Suppliers
GST payable
Other payables
Total payables
2014-15
Estimated
actual
$'000
2015-16
Budget
Total liabilities administered
37
Communications Budget Statements
Table 3.2.9: Schedule of budgeted administered cash flows (for the period ended
30 June)
OPERATING ACTIVITIES
Cash received
Interest
Net GST received
Total cash received
Cash used
Grants
Subsidies
Suppliers
Payments to Corporate Entities
Other
Total cash used
Net cash from (used by)
operating activities
INVESTING ACTIVITIES
Cash received
Loan repayments from
Corporate Entities
Total cash received
Cash used
Loans to Corporate Entities
Corporate Entity Investments
Total cash used
Net cash from (used by)
investing activities
2014-15
Estimated
actual
$'000
2015-16
Budget
$'000
2016-17
Forward
estimate
$'000
2017-18
Forward
estimate
$'000
2018-19
Forward
estimate
$'000
604
15,364
15,968
1,502
42,220
43,722
2,084
43,724
45,808
1,480
39,827
41,307
1,130
35,844
36,974
155,110
179
13,712
1,349,074
6,325
1,524,400
106,473
–
357,941
1,347,683
6,604
1,818,701
68,026
–
412,940
1,292,754
6,604
1,780,324
66,192
–
371,907
1,302,941
6,635
1,747,675
33,379
–
360,904
1,313,477
6,643
1,714,403
(1,508,432)
(1,774,979)
(1,734,516)
(1,706,368)
(1,677,429)
20,000
20,000
–
–
20,000
20,000
20,000
20,000
20,000
20,000
50,000
4,917,000
4,967,000
20,000
7,838,908
7,858,908
–
8,325,647
8,325,647
–
–
–
–
–
–
(4,947,000)
(7,858,908)
(8,305,647)
20,000
20,000
38
Communications Budget Statements
Table 3.2.9: Schedule of budgeted administered cash flows (for the period ended
30 June) (continued)
Net increase (decrease) in
cash held
Cash and cash equivalents at
beginning of reporting period
Cash from Official Public Account for:
– Appropriations
– Corporate Entity Appropriations
– Special Accounts
– Section 30A Drawdowns
Total cash from the Official Public
Account
2014-15
Estimated
2015-16
Budget
2016-17
Forward
2017-18
Forward
2018-19
Forward
actual
$'000
$'000
estimate
$'000
estimate
$'000
estimate
$'000
(6,455,432)
(9,633,887)
(10,040,163)
(1,686,368)
(1,657,429)
–
–
–
–
–
159,962
6,316,074
–
15,364
199,891
9,206,591
324,900
42,220
164,944
9,618,401
374,900
43,724
163,261
1,302,941
337,600
39,827
133,436
1,313,477
327,600
35,844
6,491,400
9,773,602
10,201,969
1,843,629
1,810,357
(95,993)
–
(42,220)
(1,502)
(95,998)
–
(43,724)
(22,084)
(95,954)
–
(39,827)
(21,480)
(95,954)
–
(35,844)
(21,130)
(139,715)
(161,806)
(157,261)
(152,928)
–
–
–
–
Cash to Official Public Account for:
– Special Accounts
–
– Dividends
–
– Section 30A Drawdowns
(15,364)
– Other
(20,604)
Total cash to the Official
Public Account
(35,968)
Cash and cash equivalents at end
of reporting period
–
Prepared on Australian Accounting Standards basis.
39
Communications Budget Statements
Table 3.2.10: Administered capital budget statement (for the period ended
30 June)
2014-15
Estimated
actual
$'000
2015-16
Budget
$'000
2016-17
Forward
estimate
$'000
2017-18
Forward
estimate
$'000
2018-19
Forward
estimate
$'000
NEW CAPITAL APPROPRIATIONS
Administered Assets and
Liabilities – Bill 2
Total new capital appropriations
3,229,445
7,365,908
8,325,647
–
–
3,229,445
7,365,908
8,325,647
–
–
Provided for:
Other Items
3,229,445
Total Items
3,229,445
Prepared on Australian Accounting Standards basis.
7,365,908
7,365,908
8,325,647
8,325,647
–
–
–
–
40
Communications Budget Statements
Table 3.2.11: Statement of administered asset movements
(Budget year 2015-16)
Other property,
plant and
equipment
$'000
$'000
182,000
182,000
(10,916)
171,084
(10,916)
171,084
(7,990)
(7,990)
(7,990)
(7,990)
182,000
182,000
(18,906)
163,094
(18,906)
163,094
As at 1 July 2015
Gross book value
Accumulated depreciation/amortisation and
impairment
Opening net book balance
Other movements
Depreciation/amortisation expense
Total other movements
As at 30 June 2016
Gross book value
Accumulated depreciation/amortisation
and impairment
Closing net book balance
Prepared on Australian Accounting Standards basis.
41
Total
Communications Budget Statements
3.2.4 Notes to the financial statements
Departmental financial statements and schedule of administered activity
The financial statements have been prepared in accordance with Australian
Accounting Standards.
Appropriations in the accrual budgeting framework
Under the Australian Government’s accrual budgeting framework, separate annual
appropriations are provided for:

Departmental price of outputs appropriations: representing the Government’s
funding for outputs from agencies;

Departmental capital appropriations: for investments by the Government, either
through additional equity or loans in agencies;

Administered expense appropriations: for the estimated Administered expenses
relating to an existing outcome, a new outcome or a Specific Purpose Payment to
the states and territories or local Government; and

Special appropriations: to fund the majority of payments from the Consolidated
Revenue Fund (especially those that are entitlement-driven or involve transfers to
State Governments).
Administered investments in controlled entities
Each Commonwealth Department is required to show an administered investment in
each corporate entity within their portfolio. These administered investments are
recorded at their fair value.
Asset valuation
Infrastructure, plant and equipment is valued at fair value. To ensure that assets
carrying amounts do not materially differ from fair value, the Department re-values
infrastructure, plant and equipment on an annual basis.
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