Portfolio Budget Statements 2015–16
Budget Related Paper No. 1.6
Employment Portfolio
Budget Initiatives and Explanations of
Appropriations Specified by Outcomes
and Programmes by Entity
© Commonwealth of Australia 2015
ISSN 2203-5583 (Print)
ISSN 2203-5591 (Online)
This publication is available for your use under a Creative Commons BY
Attribution 3.0 Australia licence, with the exception of the Commonwealth Coat
of Arms, the Department of Employment logo, photographs, images, signatures
and where otherwise stated. The full licence terms are available from
http://creativecommons.org/licenses/by/3.0/au/legalcode.
Use of Department of Employment material under a Creative Commons BY
Attribution 3.0 Australia licence requires you to attribute the work (but not in
any way that suggests that the Department of Employment endorses you or
your use of the work).
Department of Employment material used 'as supplied'
Provided you have not modified or transformed Department of Employment
material in any way including, for example, by changing the Department of
Employment text; calculating percentage changes; graphing or charting data; or
deriving new statistics from published Department of Employment statistics –
then Department of Employment prefers the following attribution:
Source: The Australian Government Department of Employment
Derivative material
If you have modified or transformed Department of Employment material, or
derived new material from those of the Department of Employment in any way,
then Department of Employment prefers the following attribution:
Based on The Australian Government Department of Employment data
Use of the Coat of Arms
The terms under which the Coat of Arms can be used are set out on the It’s an
Honour website (see www.itsanhonour.gov.au).
Other uses
Enquiries regarding this licence and any other use of this document are welcome
at the:
Department of Employment
GPO Box 9880
Canberra ACT 2600
Tel: +61 1300 488 064
Abbreviations and conventions
The following notation may be used:
NEC/nec
not elsewhere classified
-
nil
..
not zero, but rounded to zero
na
not applicable (unless otherwise specified)
nfp
not for publication
$m
$ million
$b
$ billion
Figures in tables and in the text may be rounded. Figures in text are generally
rounded to one decimal place, whereas figures in tables are generally rounded
to the nearest thousand. Discrepancies in tables between totals and sums of
components are due to rounding.
Enquiries
Should you have any enquiries regarding this publication please contact
Glen Casson, Acting Chief Finance Officer, Department of Employment on
1300 488 064.
A copy of this document can be located on the Australian Government Budget
website at: www.budget.gov.au.
iv
USER GUIDE
TO THE
PORTFOLIO BUDGET
STATEMENTS
USER GUIDE
The purpose of the 2015–16 Portfolio Budget Statements (PB Statements) is to
inform Senators and Members of Parliament of the proposed allocation of
resources to government outcomes by entities within the portfolio. Entities
receive resources from the annual appropriations acts, special appropriations
(including standing appropriations and special accounts), and revenue from
other sources.
A key role of the PB Statements is to facilitate the understanding of proposed
annual appropriations in Appropriation Bills (No. 1 and No. 2) 2015–16 (or
Appropriation (Parliamentary Departments) Bill (No. 1) 2015–16 for the
parliamentary departments). In this sense the PB Statements are Budget related
papers and are declared by the Appropriation Acts to be ‘relevant documents’ to
the interpretation of the Acts according to section 15AB of the Acts Interpretation
Act 1901.
The PB Statements provide information, explanation and justification to enable
Parliament to understand the purpose of each outcome proposed in the Bills.
As required under section 12 of the Charter of Budget Honesty Act 1998,
non-general government sector entities are not consolidated into the
Commonwealth general government sector fiscal estimates and accordingly,
these entities are not reported in the PB Statements.
vi
CONTENTS
Portfolio overview ......................................................................................................... 3
Employment Portfolio Overview ...................................................................................... 5
Entity resources and planned performance ............................................................. 11
Department of Employment ........................................................................................... 13
Asbestos Safety and Eradication Agency ..................................................................... 61
Comcare, the Safety, Rehabilitation and Compensation Commission,
and the Seafarers Safety, Rehabilitation and Compensation Authority ........................ 81
Fair Work Commission ................................................................................................ 121
Fair Work Ombudsman ............................................................................................... 149
Office of the Fair Work Building Industry Inspectorate ................................................ 181
Safe Work Australia ..................................................................................................... 207
Workplace Gender Equality Agency ............................................................................ 233
Glossary ..................................................................................................................... 261
1
PORTFOLIO OVERVIEW
Portfolio overview
EMPLOYMENT PORTFOLIO OVERVIEW
Ministers and portfolio responsibilities
The Employment portfolio assists the Australian Government to achieve its
objectives for employment. Senator the Hon. Eric Abetz is the Minister for
Employment and the Hon. Luke Hartsuyker MP is the Assistant Minister for
Employment.
The Employment portfolio provides advice, support, programmes and services
to the Australian Government and wider community. The portfolio works with
other Australian Government agencies, state and territory governments and a
range of service providers to connect people with jobs, workplaces with safety
and business with productivity.
The Department of Employment’s role is to provide national policies and
programmes that help Australians find and keep employment, work in safe, fair
and productive workplaces and improve the employment-related performance
of enterprises in Australia.
The Asbestos Safety and Eradication Agency is dedicated to working with
jurisdictions and affected parties to facilitate a national approach to the
eradication, handling and awareness of asbestos.
Comcare, the Safety, Rehabilitation and Compensation Commission, and the
Seafarers Safety, Rehabilitation and Compensation Authority contribute to a
secure, safer, fairer and more productive Australia. Comcare partners with
workers, their employers and unions to keep workers healthy and safe, and
reduce the incidence and cost of workplace injury and disease.
The Fair Work Commission is Australia’s national workplace relations tribunal.
It is responsible for administering provisions of the Fair Work Act 2009 as well as
a range of other functions.
The Fair Work Ombudsman promotes harmonious, productive and cooperative
workplace relations and ensures compliance with Commonwealth workplace
laws.
The Office of the Fair Work Building Industry Inspectorate is responsible for
ensuring compliance with workplace laws in building and construction
workplaces and delivering impartial advice to the building and construction
industry.
Safe Work Australia is leading the development of policy to improve work
health and safety and workers’ compensation arrangements across Australia.
The Workplace Gender Equality Agency is responsible for promoting and
improving gender equality in Australian workplaces and administering the
Workplace Gender Equality Act 2012.
5
Portfolio overview
The Employment portfolio structure and outcomes can be found at Figure 1.
Figure 1: Employment portfolio structure and outcomes
Senator the Hon. Eric Abetz, Minister for Employment
The Hon. Luke Hartsuyker MP, Assistant Minister for Employment
Department of Employment
Renée Leon PSM, Secretary
Outcome 1
Foster a productive and competitive labour market through employment policies and
programmes that assist job seekers into work, meet employer needs and increase
Australia’s workforce participation.
Outcome 2
Facilitate jobs growth through policies that promote fair, productive and safe
workplaces.
Asbestos Safety and Eradication Agency
Peter Tighe, Chief Executive Officer
Outcome
Assist in the prevention of exposure to asbestos fibres and the elimination of asbestosrelated disease in Australia through implementing the National Strategic Plan for
Asbestos Awareness and Management in Australia.
Comcare, the Safety, Rehabilitation and Compensation Commission, and the Seafarers
Safety, Rehabilitation and Compensation Authority
Jennifer Taylor, Chief Executive Officer
Outcome
Supporting participation and productivity through healthy and safe workplaces that
minimise the impact of harm in workplaces covered by Comcare.
Fair Work Commission
Bernadette O’Neill, General Manager
Outcome
Simple, fair and flexible workplace relations for employees and employers through the
exercise of powers to set and vary minimum wages and modern staff awards, facilitate
collective bargaining, approve agreements and deal with disputes.
Fair Work Ombudsman
Natalie James, Ombudsman
Outcome
Compliance with workplace relations legislation by employees and employers through
advice, education and, where necessary, enforcement.
6
Portfolio overview
Figure 1: Employment portfolio structure and outcomes (continued)
Office of the Fair Work Building Industry Inspectorate
Nigel Hadgkiss APM, Director
Outcome
Enforce workplace relations laws in the building and construction industry and ensure
compliance with those laws by all participants in the building and construction industry
through the provision of education, assistance and advice.
Safe Work Australia
Michelle Baxter, Chief Executive Officer
Outcome
Healthier, safer and more productive workplaces through improvements to Australian
work health and safety and workers’ compensation arrangements.
Workplace Gender Equality Agency
Louise McSorley, Acting Director
Outcome
Promote and improve gender equality in Australian workplaces including the provision
of advice and assistance to employers and the assessment and measurement of
workplace gender data.
7
Portfolio overview
PORTFOLIO RESOURCES
Table 1 shows the total new resources provided to the portfolio in the 2015–16
budget year by entity.
Table 1: Portfolio resources 2015–16
Appropriation Appropriation
Special
Bill No. 1
Bill No. 2
appropriation
($m)
($m)
($m)
Departm ent of Em ploym ent
Administered appropriations
1,544.4
443.1
Departmental appropriations
312.9
9.3
Total:
Asbestos Safety and
Eradication Agency
Administered appropriations
Departmental appropriations
Total:
Com care, The Safety
Rehabilitation and
Com pensation Com m ission,
and the Seafarers Safety,
Rehabilitation and
Com pensation Authority
Administered appropriations
Departmental appropriations
Total:
Fair Work Com m ission
Administered appropriations
Departmental appropriations
Total:
Office of the Fair Work
Building Industy
Inspectorate
Administered appropriations
Departmental appropriations
Total:
Fair Work Om budsm an
Administered appropriations
Departmental appropriations
Total:
Receipts
($m)
Total
($m)
17.7
1,987.5
340.0
2,327.5
3.3
-
-
-
3.3
3.3
7.7
-
0.1
584.2
592.1
592.1
82.0
-
0.5
-
2.4
0.5
84.4
84.9
35.2
-
-
0.1
35.2
35.2
117.9
-
0.2
-
0.8
0.2
118.7
118.9
8
Portfolio overview
Table 1: Portfolio resources 2015–16 (continued)
Appropriation Appropriation
Special
Bill No. 1
Bill No. 2
appropriation
($m)
($m)
($m)
Safe Work Australia
Administered appropriations
Departmental appropriations
Total:
Workplace Gender Equality
Agency
Administered appropriations
Departmental appropriations
Total:
Receipts
($m)
9.7
-
11.0
-
20.7
20.7
5.1
-
-
0.1
5.2
5.2
Portfolio total
Less amounts transferred
w ithin portfolio
Total
($m)
3,187.8
-
Resources available w ithin portfolio:
9
3,187.8
ENTITY RESOURCES AND
PLANNED PERFORMANCE
Department of Employment ........................................................................................... 13
Asbestos Safety and Eradication Agency ..................................................................... 61
Comcare, the Safety, Rehabilitation and Compensation Commission,
and the Seafarers Safety, Rehabilitation and Compensation Authority ........................ 81
Fair Work Commission ................................................................................................ 121
Fair Work Ombudsman ............................................................................................... 149
Office of the Fair Work Building Industry Inspectorate ................................................ 181
Safe Work Australia ..................................................................................................... 207
Workplace Gender Equality Agency ............................................................................ 233
11
Department of Employment
Entity resources and planned
performance
DEPARTMENT OF EMPLOYMENT
Section 1: Entity overview and resources ................................................................ 17
1.1
Strategic direction statement .......................................................................... 17
1.2
Entity resource statement ............................................................................... 19
1.3
Budget measures ............................................................................................ 22
Section 2: Outcomes and planned performance...................................................... 26
2.1
Outcomes and performance information ........................................................ 26
Section 3: Explanatory tables and budgeted financial statements ........................ 44
3.1
Explanatory tables........................................................................................... 44
3.2
Budgeted financial statements ........................................................................ 45
15
Department of Employment Budget Statements 2015–16
DEPARTMENT OF EMPLOYMENT
Section 1: Entity overview and resources
1.1
STRATEGIC DIRECTION STATEMENT
The Department of Employment (the department) provides policy advice and
delivers programmes to further the Australian Government’s agenda to create
more jobs and increase productivity.
The department has two outcomes:
 Foster a productive and competitive labour market through employment
policies and programmes that assist job seekers into work, meet employer
needs and increase Australia’s workforce participation.
 Facilitate jobs growth through policies that promote fair, productive and safe
workplaces.
To achieve these outcomes, the major priorities for the department in 2015–16
are:
 implementing the new employment services system, jobactive, and
delivering efficient and effective employment services to help more job
seekers to find and keep a job
 implementing a national Work for the Dole programme that provides job
seekers with work-like experience and makes a positive contribution to their
local community
 implementing a suite of measures under the government’s growing jobs and
small business package to make it easier for small business to employ staff
and help job seekers, particularly young job seekers, to find work. This
includes a new National Work Experience Programme; new wage subsidy
arrangements; a new Transition to Work programme to support young job
seekers; programmes to trial innovative approaches to assisting young job
seekers most at risk of unemployment; and reforms to strengthen job seeker
compliance
 developing policies to improve workforce participation opportunities for all
Australians, specifically including young people, mature aged people,
Indigenous Australians, women and parents
 strengthening the job seeker compliance framework so that it provides the
necessary incentive for job seekers to comply with their mutual obligation
requirements
 providing legal and policy advice to government to ensure the effective
implementation and reform of the Fair Work Act 2009 and related frameworks
17
Department of Employment Budget Statements 2015–16
 participating in the Productivity Commission’s review of the workplace
relations framework
 supporting workers when their employer fails and does not leave sufficient
funds to meet their entitlements
 administering the Australian Government Building and Construction Work
Health and Safety Accreditation Scheme to establish best practice in health
and safety systems of building companies that wish to undertake
Commonwealth-funded building work
 contributing to higher productivity through implementation of national
approaches to workplace health and safety and workers’ compensation laws,
as well as advising government on reforms to improve the Comcare workers’
compensation scheme
 working with Commonwealth agencies to prevent work-related injuries and
disease and to improve return-to-work outcomes for injured workers
 engaging with relevant international forums to promote Australia’s national
interests and inform domestic policies
 identifying and implementing opportunities to fulfil the government’s
deregulation agenda by reducing unnecessary compliance burdens and
leading cultural change.
Budget measures for 2015–16 for the department are set out in Table 1.2.
18
Department of Employment Budget Statements 2015–16
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 Employment Resource Statement – Budget
Estimates for 2015–16 as at Budget May 2015
Estimate of
prior year
amounts
available in
2015–16
$'000
Proposed at
2015–16
Budget
Total 2015–16
estimate
$'000
$'000
66,426
-
312,944
17,713
66,426
312,944
17,713
66,426
330,657
397,083
-
1,523,012
21,035
7,727
1, 5 5 1, 7 7 4
1,523,012
21,035
7,727
1, 5 5 1, 7 7 4
66,426
1, 8 8 2 , 4 3 1
1, 9 4 8 , 8 5 7
-
9,333
9,333
2 6 , 114
-
9,333
9,333
2 6 , 114
-
9,333
9,333
1, 9 13 , 2 8 7
66,426
1, 8 9 1, 7 6 4
1, 9 5 8 , 19 0
Ac tual
Available
Appropriation
2014–15
$'000
O rdina ry a nnua l se rvic e s 1
De pa rtme nta l a ppropria tion
2
Prior year appropriations
3
Departmental appropriation
4
s74 Retained revenue rec eipts
Tota l
Administe re d e xpe nse s
Outc ome 1
Outc ome 2
5
Payments to c orporate entities
Tota l
68,622
327,013
20,182
4 15 , 8 17
1,435,833
27,960
7,563
1, 4 7 1, 3 5 6
Tota l ordina ry a nnua l se rvic e s [A] 1, 8 8 7 , 17 3
6
O the r se rvic e s
De pa rtme nta l non- ope ra ting
2
Prior year appropriations
Equity injec tions
Tota l
Tota l othe r se rvic e s [B]
Tota l a va ila ble a nnua l
a ppropria tions [A+ B]
2,127
23,987
19
Department of Employment Budget Statements 2015–16
Table 1.1 Department of Employment Resource Statement – Budget
Estimates for 2015–16 as at Budget May 2015 (continued)
Proposed at
2015–16
Budget
Total 2015–16
estimate
$'000
Estimate of
prior year
amounts
available in
2015–16
$'000
$'000
$'000
Ac tual
Available
Appropriation
2014–15
S pe c ia l a ppropria tions
S pe c ia l a ppropria tions limite d by
c rite ria / e ntitle me nt
Public Governanc e, Performanc e
and Ac c ountability Ac t 2013 - s77 7
Coal Mining Industry (Long Servic e
Leave Funding) Ac t 1992
Safety, Rehabilitation and
Compensation Ac t 1988
Asbestos- related Claims
(Management of Commonwealth
Liabilities) Ac t 2005
44
-
30
30
174,618
-
174,618
174,618
50,069
-
36,515
36,515
22,887
-
33,211
33,211
Fair Entitlements Guarantee Ac t 2012
263,505
-
198,768
198,768
5 11, 12 3
-
4 4 3 , 14 2
4 4 3 , 14 2
2,334,906
2,401,332
Tota l spe c ia l a ppropria tions [C]
Tota l a ppropria tions e xc luding
spe c ia l a c c ounts
S pe c ia l a c c ounts
8
Opening balanc e
2,424,410
Tota l spe c ia l a c c ounts [D]
Tota l re sourc ing [A+ B+ C+ D]
Less payments to c orporate entities
through annual appropriations
Tota l ne t re sourc ing for
De pa rtme nt of Employme nt
66,426
-
-
-
-
-
-
-
-
66,426
2,334,906
2 , 4 0 1, 3 3 2
2 , 4 2 4 , 4 10
(7,563)
2 , 4 16 , 8 4 7
66,426
(7,727)
2 , 3 2 7 , 17 9
(7,727)
2,393,605
1
Appropriation Bill (No.1) 2015–16.
2
Estimated adjusted balance carried forward from previous year.
3
Includes an amount of $26.9 million 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'.
4
Estimated Retained revenue receipts under section 74 of the PGPA Act 2013.
5
'Corporate entities' are corporate Commonwealth entities and Commonwealth companies as
defined under the PGPA Act 2013.
6
Appropriation Bill (No.2) 2015–16.
7
Repayments not provided for under other appropriations. Amounts received on or before
30 June 2014 were repaid under section 28 of the Financial Management and Accountability Act 1997.
8
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)).
Reader note: All figures are GST exclusive.
20
Department of Employment Budget Statements 2015–16
Table 1.1 Department of Employment Resource Statement – Budget
Estimates for 2015–16 as at Budget May 2015 (continued)
Third party payments from and on behalf of other entities
Payments made by other entities on behalf of the Department of Employment
(disc losed above)
2014–15
$'000
2015–16
$'000
-
32,885
Rec eipts rec eived from other entities for the provision of servic es
(disc losed above in s74 Retained revenue rec eipts sec tion above)
20,182
17,713
(7,563)
(7,727)
Payments made to c orporate entities within the Portfolio
Comc are
Annual Appropriation Bill 1 - Outc ome 2
21
Department of Employment Budget Statements 2015–16
1.3
BUDGET MEASURES
Budget measures in Part 1 relating to the Department of Employment are
detailed in Budget Paper No. 2 and are summarised below.
Table 1.2: Entity 2015–16 Budget measures
Part 1: Measures announced since the 2014–15 Mid-Year Economic and
Fiscal Outlook (MYEFO)
Programme
Expense m easures
Beacon Foundation - grant funding
Administered expenses
Departmental expenses
Total
Employment Services - Changes to
Service Fees and Cessation of
Personal Contact Interview s
Administered expenses
Departmental expenses
Total
Geelong Employment Facilitator extension
Administered expenses
Departmental expenses
Total
Grow ing Jobs and Small Business engaging early school leavers
Administered expenses
Departmental expenses
Total
Grow ing Jobs and Small Business further strengthening the job seeker
compliance arrangements
Administered expenses
Departmental expenses
Total
Grow ing Jobs and Small Business
Package - National Work Experience
Programme
Administered expenses
Departmental expenses
2014–15
$'000
2015–16 2016–17 2017–18 2018–19
$'000
$'000
$'000
$'000
1.1
-
-
-
-
-
-
-
-
-
-
(45,754)
-
-
-
-
-
(45,754)
-
-
-
-
(1,300)
-
750
-
550
-
-
-
(1,300)
750
550
-
-
-
1,296
16
2,593
-
2,694
-
2,795
-
-
1,312
2,593
2,694
2,795
-
11
379
70
100
-
-
-
390
70
100
-
-
3,197
4,015
338
4,315
3,558
-
3,197
4,015
4,653
3,558
1.1
1.1
1.1
1.1
1.1
Total
22
Department of Employment Budget Statements 2015–16
Table 1.2: Entity 2015–16 Budget measures
Part 1: Measures announced since the 2014–15 Mid-Year Economic and
Fiscal Outlook (MYEFO) (continued)
Programme
Grow ing Jobs and Small Business w age subsidies - redesign
Administered expenses
Departmental expenses
Total
Grow ing Jobs and Small Business Youth Employment Strategy intensive support for vulnerable job
seekers
Administered expenses
Departmental expenses
Total
Grow ing Jobs and Small Business Youth Employment Strategy - revised
w aiting period for youth income
support
Administered expenses
Departmental expenses
Total
Norfolk Island Reform1
Administered expenses
Departmental expenses
Total
Strengthening the Integrity of Welfare
Payments 2
Administered expenses
Departmental expenses
2015–16 2016–17 2017–18 2018–19
$'000
$'000
$'000
$'000
1.1
Total
Grow ing Jobs and Small Business Youth Employment Strategy intensive support - transition to w ork
Administered expenses
Departmental expenses
2014–15
$'000
(70)
-
(103,347)
16
(20,950)
-
57,556
-
66,403
-
(70)
(103,331)
(20,950)
57,556
66,403
-
13,545
8,437
59,290
1,540
62,006
1,551
60,000
1,155
-
21,982
60,830
63,557
61,155
-
12,619
2,878
24,918
2,643
25,267
2,621
9,928
2,620
-
15,497
27,561
27,888
12,548
-
42
-
-
-
-
42
-
-
-
-
128
375
-
276
-
277
-
-
128
375
276
277
-
-
-
2,381
-
9,081
-
-
-
-
2,381
9,081
1.1
1.1
1.1
1.1
1.1
Total
23
Department of Employment Budget Statements 2015–16
Table 1.2: Entity 2015–16 Budget measures
Part 1: Measures announced since the 2014–15 Mid-Year Economic and
Fiscal Outlook (MYEFO) (continued)
Programme
Fair Entitlements Guarantee recovery programme - trial
Administered expenses
Departmental expenses
Total
Grow ing Jobs and Small Business engaging early school leavers
Administered capital
Departmental capital
Total
Grow ing Jobs and Small Business further strengthening the job seeker
compliance arrangements
Administered capital
Departmental capital
Total
Grow ing Jobs and Small Business
Package - National Work Experience
Programme
Administered capital
Departmental capital
2015–16 2016–17 2017–18 2018–19
$'000
$'000
$'000
$'000
2.1
Total
Total expense m easures
Administered
Departmental
Total
Capital m easures
Disability Employment - a better w ay
to w ork3
Administered capital
Departmental capital
2014–15
$'000
-
4,975
692
5,055
736
-
-
-
5,667
5,791
-
-
(47,124)
-
(70,151)
15,785
71,831
9,004
150,618
8,487
148,484
7,333
(47,124)
(54,366)
80,835
159,105
155,817
-
111
-
-
-
-
111
-
-
-
-
295
-
-
-
-
295
-
-
-
-
358
-
-
-
-
358
-
-
-
-
52
-
-
-
-
52
-
-
-
1.1
1.1
1.1
1.1
Total
24
Department of Employment Budget Statements 2015–16
Table 1.2: Entity 2015–16 Budget measures
Part 1: Measures announced since the 2014–15 Mid-Year Economic and
Fiscal Outlook (MYEFO) (continued)
Programme
Grow ing Jobs and Small Business w age subsidies - redesign
Administered capital
Departmental capital
2014–15
$'000
2015–16 2016–17 2017–18 2018–19
$'000
$'000
$'000
$'000
1.1
-
313
-
-
-
-
313
-
-
-
-
4,447
-
-
-
-
4,447
-
-
-
-
798
-
-
-
-
798
-
-
-
-
65
-
-
-
Total
Total capital m easures
Administered
Departmental
-
65
-
-
-
-
6,439
-
-
-
Total
-
6,439
-
-
-
Total
Grow ing Jobs and Small Business Youth Employment Strategy intensive support for vulnerable job
seekers
Administered capital
Departmental capital
Total
Grow ing Jobs and Small Business Youth Employment Strategy - revised
w aiting period for youth income
support
Administered capital
Departmental capital
Total
Norfolk Island Reform1
Administered capital
Departmental capital
1.1
1.1
1.1
1
The lead entity for the measure is the Department of Infrastructure and Regional Development. The
full measure description and package details appear in Budget Paper No. 2 under the
Infrastructure and Regional Development portfolio.
2
The lead entity for the measure is the Department of Human Services. The full measure description
and package details appear in Budget Paper No. 2 under the Human Services portfolio.
3
The lead entity for the measure is the Department of Social Services. The full measure description
and package details appear in Budget Paper No. 2 under the Social Services portfolio.
Prepared on a Government Finance Statistics (fiscal) basis.
25
Department of Employment Budget Statements 2015–16
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 Employment in achieving government
outcomes.
Outcome 1: Foster a productive and competitive labour market through
employment policies and programmes that assist job seekers into work,
meet employer needs and increase Australia’s workforce participation.
Outcome 1 strategy
Through this outcome, the department assists the Australian Government to
help more Australians to gain paid employment, delivering benefits for
individuals, their families and the community. Strategies for achieving this
outcome during 2015–16 include:
 implementing a new employment services system, jobactive, from




1 July 2015. The new model has a clearer focus on payment for results to
ensure jobactive organisations better meet the needs of job seekers and
employers
the national roll-out of a new mutual obligation framework and new Work
for the Dole arrangements to ensure that job seekers remain active and
engaged while looking for work
implementing the employment related elements of the government’s
growing jobs and small business package to increase employment
opportunities for job seekers, especially young job seekers
continuing to reduce red tape for employment services, including
simplifying and streamlining processes, making more efficient use of
technology and increasing collaboration and use of data across government
agencies
monitoring labour market conditions in Australia and providing policy
advice to the government to enable employment services to: respond to
emerging labour market and economic developments; work collaboratively
with other agencies and a range of external parties to bolster Australia’s
26
Department of Employment Budget Statements 2015–16
productive capacity; and ensure a consistent approach to government
delivery of employment services
 maintaining collaborative relationships with relevant international
organisations including the OECD, APEC and the G20 and progressing the
outcomes of the 2014 G20 Leaders Summit.
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
Outcom e 1: Foster a productive and com petitive labour
m arket through em ploym ent policies and program m es
that assist job seekers into w ork, m eet em ployer needs
and increase Australia's w orkforce participation.
Program m e 1.1: Em ploym ent Services
Administered expenses
Ordinary annual services (Appropriation Bill No. 1)
Total for program m e 1.1
Outcom e 1 Totals by appropriation type
Administered expenses
Ordinary annual services (Appropriation Bill No. 1)
Departmental expenses
Departmental appropriation1
Expenses not requiring appropriation in the Budget year 2
Total expenses for Outcom e 1
Average staffing level (num ber)
2014–15
Estimated
actual
expenses
$'000
2015–16
Estimated
expenses
1,435,833
1,523,012
1,435,833
1,523,012
1,435,833
1,523,012
254,739
26,638
262,768
29,760
1,717,210
1,815,540
2014-15
1,212
2015-16
1,294
$'000
1
Departmental appropriation combines 'Ordinary annual services (Appropriation Bill No. 1)' and
'Revenue from independent sources (s 74)'.
2
Expenses not requiring appropriation in the Budget year are made up of depreciation expenses,
amortisation expenses, and audit fees.
Note: Departmental appropriation splits and totals are indicative estimates and may change in the
course of the budget year as government priorities change.
27
Department of Employment Budget Statements 2015–16
Contributions to Outcome 1
Programme 1.1: Employment Services
Programme objective
The Australian Government’s new employment services system, known as
jobactive, commences on 1 July 2015 and replaces the Job Services Australia
programme. It contributes to the government’s overall commitment to build a
strong and prosperous economy that promotes stronger workforce participation
by working age Australians and helps more job seekers move from welfare to
work.
The objectives of the jobactive programme are to help job seekers:
 find and keep a job
 move from welfare to work.
There are five services delivered as part of jobactive:
 jobactive employment services assist job seekers to find and keep a job and
ensure employers are provided with job seekers who meet their business
needs
 Work for the Dole Coordinators, which started on 1 May 2015, are
responsible for sourcing suitable Work for the Dole activities in not-for-profit
and government organisations to help prepare job seekers for the work
environment
 New Enterprise Incentive Scheme assists eligible job seekers to start and run
their own small business
 Harvest Labour Services and the National Harvest Labour Information
Service support the requirements of growers in the horticulture industry for
harvest workers.
Features which will contribute to the jobactive programme achieving its
objectives include:
 new payment and performance frameworks to ensure jobactive organisations
are focused on better meeting the needs of job seekers and employers
 new outcome payments at 4, 12 and 26 weeks to ensure jobactive
organisations help job seekers to take up all available work opportunities
including short term and seasonal work. Higher outcome payments will be
made for longer term job opportunities
 wage subsidies to encourage employers to hire young job seekers under 30
years of age, job seekers over 50 years of age, indigenous job seekers, parents
and the long term unemployed
28
Department of Employment Budget Statements 2015–16
 a streamlined Employment Fund for work-related items, professional
services, support and targeted training that will help job seekers obtain and
stay in work
 modern online and self-help facilities for job seekers and employers
 a stronger mutual obligation framework to ensure job seekers remain active
and engaged while looking for work, including the national roll-out of Work
for the Dole for most job seekers under 50 years of age
 the establishment of new Work for the Dole Coordinators to work with not
for profit organisations and government agencies to identify suitable Work
for the Dole activities
 new indigenous outcome targets to ensure jobactive organisations are
helping indigenous job seekers into work at the same rate as other job seekers
in their region
 the establishment of 51 new Employment Regions to promote economies of
scale
 reduced service prescription and red tape in the administration and delivery
of employment services
 the new employment services contract is for five years instead of three years,
as was offered in the past
 a mid-contract price adjustment paid to ensure employment providers can
deliver the service for the life of the contract
 a new regional loading for providers in selected regions in recognition that
labour market conditions vary across Australia
 greater emphasis on service quality including compulsory certification under
the Quality Assurance Framework for jobactive organisations.
Other key features of jobactive are:
 the Relocation Assistance to Take up a Job Programme began on 1 July 2014.
The programme encourages labour mobility by assisting long-term
unemployed people to relocate to take up ongoing work. The government
provides job seekers who have been unemployed for 12 months, and meet
other eligibility requirements, up to $6000 if they move to a regional area or
up to $3000 if they relocate to a metropolitan area from a regional area to take
up a job (or from a capital city with high unemployment to a capital city with
lower unemployment). An additional $3000 may also be made available for
families with dependent children.
 the Job Commitment Bonus encourages long-term unemployed young
Australians to find and keep a job by offering a payment for remaining in
work and off income support. From 1 July 2014, job seekers aged 18 to 30
who have been receiving Newstart Allowance or Youth Allowance (other)
for 12 months or more will be eligible for a $2500 payment if they get a job
and remain completely off welfare for a continuous period of 12 months. A
further $4000 will be available if they remain in a job and completely off
29
Department of Employment Budget Statements 2015–16
welfare for a continuous period of 24 months. First payments are expected
from July 2015.
 the Tasmanian Jobs Programme is a two year trial programme which
provides a one-off payment of $3250, increasing to $6500 from 13 May 2015,
to any Tasmanian business that employs eligible job seekers for a period of at
least six months. The programme began on 1 January 2014. To be eligible, job
seekers must have been a resident in Tasmania for the preceding six months,
receiving an eligible income support payment for the same period and have
participation requirements.
 New Enterprise Incentive Scheme (NEIS) provides job seekers with
accredited small business training (Certificate IV in Small Business
Management or Certificate III in Micro-business Operations), which includes
the development of business plans. Once their business plan is approved and
their business is up and running, participants receive business mentoring
and other support for up to 52 weeks, as well as ongoing income support via
NEIS Allowance, for up to 39 weeks. NEIS supports up to 6300 NEIS
business start-ups per financial year.
 Harvest Labour Services (HLS) helps growers to supplement local labour
with out-of-area workers. Services delivered by HLS providers include:
– mobilising job seekers from locations outside harvest areas and placing
them into harvest jobs
– liaising with growers and supporting their harvest labour needs
– marketing harvest work opportunities.
 the National Harvest Labour Information Service (NHLIS) provides national
coordination and dissemination of information regarding harvest-related
work opportunities across Australia, including those areas not serviced by
the HLS. NHLIS services include:
– producing and distributing an electronic National Harvest Guide—a
comprehensive Harvest Trail information booklet maintaining
information on harvest job opportunities around the country on the
harvesttrail.gov.au website
– providing a national free-call telephone information service.
 Structural adjustment programmes—support workers who are retrenched
from eligible companies in particular industries. Eligible workers receive a
higher level of support through jobactive.
30
Department of Employment Budget Statements 2015–16
Table 2.1.1 Budgeted expenses for Programme 1.1
2014–15
Estimated
actual
$'000
Annual administered expenses:
jobactive
Job Services Australia
Job Commitment Bonus
Intensive Support for Vulnerable
Job Seekers
Transition to Work
Seasonal Worker Programme
Mature Age Employment
Total program m e expenses
2015–16
Budget
$'000
2016–17
Forw ard
estimate
$'000
2017–18
Forw ard
estimate
$'000
2018–19
Forw ard
estimate
$'000
6,756 1,459,566
1,423,988
10
32,885
1,778,210
62,483
1,772,123
64,718
1,793,512
64,379
1,259
3,820
12,466
13,545
1,277
3,273
27,309
59,290
1,705
3,335
31,553
62,006
1,732
3,388
17,602
60,000
1,759
3,442
1,435,833
1,523,012
1,932,332
1,935,520
1,940,694
Linked to: Department of Human Services, Programme 1.1 Services to the
Community – Social Security and Welfare and the Department of Prime Minister
and Cabinet, Programme 2.1 Jobs, Land and Economy.
Programme 1.1 Performance measures
The new jobactive programme is designed to help more job seekers to find and
keep a job and move from welfare to work.
Performance against the objective of helping people to find and keep a job will
be measured in terms of the proportion of job placements that last 4, 12 and
26 weeks, in keeping with the new outcome payment structure.
Performance against the objective of helping people move from welfare to work
will be measured in terms of the proportion of job seekers who move off income
support or reduce their reliance on income support, six months following
participation in jobactive.
The programme’s cost efficiency will be measured by the total programme cost
per employed job seeker.
Targets have been set for each performance measure based on 2014–15 labour
market conditions and caseload composition. Many performance measures are
affected by external factors, particularly labour market conditions and the level
of disadvantage of the job seekers taking part in the programme. These factors
will be considered in conjunction with reporting on the programme’s
performance in the Department of Employment’s Annual Report 2015–16.
Many job seekers will not have participated in jobactive for a sufficient period of
time for their outcomes to be measured during 2015–16. Therefore, some
performance measures for 2015–16 will relate to a smaller proportion of job
seekers than in future years.
Performance measures for the jobactive programme are described in tables
2.1.1A to 2.1.1C.
31
Department of Employment Budget Statements 2015–16
Job Services Australia will conclude on 30 June 2015. Performance results for Job
Services Australia for 2014–15 are unavailable at the time of Budget and will be
reported in the Department of Employment’s Annual Report 2014–15.
Table 2.1.1.A Objective 1: Help job seekers find and keep a job
Performance
measure
Count of job
placements
2014–15
Revised
budget
2015–16
Budget
2016–17
2017–18
2018–19
Forward
Estimate
Forward
Estimate
Forward
Estimate
-1
380,000
380,000
380,000
380,000
Proportion of job
placements sustained to
four weeks2
-
68%
68%
68%
68%
Proportion of job
placements sustained to
12 weeks2
-
44%
44%
44%
44%
Proportion of job
placements sustained to
26 weeks2
-
24%
24%
24%
24%
1
Around 350,000 job placements are expected to be recorded in the final 12 months of the Job
Services Australia programme in 2014–15.
2
Only job placements which are eligible for a paid 4, 12 and 26 week outcomes will be included in
the respective sustainability measures.
Table 2.1.1.B Objective 2: Help job seekers move from welfare to work
Performance
measure
Proportion of job
seekers moving off
income support, or
with reduced reliance
on income support, six
months after
participation in
jobactive
2014–15
Revised
budget
-
2015–16
Budget
40%
32
2016–17
2017–18
2018–19
Forward
Estimate
Forward
Estimate
Forward
Estimate
40%
40%
40%
Department of Employment Budget Statements 2015–16
Table 2.1.1.C Overall programme summary
Performance
measure
2014–15
Revised
budget
Cost per
employment
outcome1
1
2015–16
Budget
-
$2500
2016–17
2017–18
Forward
Estimate
Forward
Estimate
2018–19
Forward
Estimate
$2500
$2500
$2500
Programme costs take into account expenditure such as Employment Fund expenditure, service
fees and paid outcomes. The number of employment outcomes is taken from the estimated number
of job seekers who are employed three months following participation in the programme.
Outcome 1 Departmental outputs
The department supports the objectives of this outcome through policy
development, programme design and management. The department provides
an administrative framework that includes quality and programme assurance,
purchasing and contract management, information technology and evaluation.
The department undertakes a range of reporting to evaluate the performance of
programmes administered under Outcome 1.
Performance information for Outcome 1 departmental outputs
Table 2.1.1.D Client satisfaction
Performance measure
2015–16 estimate
Level of satisfaction of service providers
with contracted information and support
33
80%
Department of Employment Budget Statements 2015–16
Outcome 2: Facilitate jobs growth through policies that promote fair,
productive and safe workplaces.
Outcome 2 strategy
Through this outcome, the department supports the Australian Government to
deliver a national workplace relations system that encourages employers and
employees to agree on productive and competitive working arrangements to
support jobs growth.
The department also supports the government to improve workplace health and
safety and workers’ compensation arrangements for Commonwealth and
private sector employers and their employees under the Comcare scheme.
The Productivity Commission review of the workplace relations system is an
important initiative that will inform the department’s policy development work.
Strategies for achieving this outcome in 2015–16 include:
 providing legal and policy advice to the government on the implementation
of its workplace relations, work health and safety and workers’
compensation reform agenda
 preparing submissions and participating in hearings and inquiries on behalf
of the government
 continuing to prepare legislation and working closely with stakeholders to
implement government priorities
 contributing to safer workplaces and higher productivity through
implementation of national approaches to workplace health and safety and
workers’ compensation laws
 leading legislative and non-legislative measures to improve the Comcare
scheme
 continuing to implement the improvements agreed by the government to
modernise and streamline the work health and safety accreditation scheme
(for contractors that undertake Commonwealth funded building work).
 streamlining gender reporting while maintaining a focus on driving gender
equality in the workplace through supporting a working group that is
examining better ways to implement gender reporting
 continuing to work cooperatively with states and territories to ensure
ongoing effectiveness of the national workplace relations system, and work
health and safety frameworks
 supporting the integrity of the workplace relations framework through
strategic interventions in key cases before courts and tribunals
 promoting the effective operation of the workplace relations system through
working closely with existing workplace relations agencies including the Fair
Work Commission, the Fair Work Ombudsman, Office of the Fair Work
Building Industry Inspectorate and, subject to passage of legislation by the
34
Department of Employment Budget Statements 2015–16
parliament, its replacement the Australian Building and Construction
Commission
 working with Safe Work Australia, Comcare and the Asbestos Safety and
Eradication Agency to promote the safety and wellbeing of employees and
the Workplace Gender Equality Agency to promote gender equality in
workplaces
 maintaining the workplace agreement database and preparing quarterly
published reports, policy advice and programme administration of the Fair
Entitlements Guarantee programme, research and evaluation and support to
the International Labour Organization.
35
Department of Employment Budget Statements 2015–16
Outcome expense statement
Table 2.2 provides an overview of the total expenses for Outcome 2 by
programme.
Table 2.2
Budgeted expenses and resources for Outcome 2
Outcom e 2: Facilitate jobs grow th through policies that
prom ote fair, productive and safe w orkplaces.
Program m e 2.1: Em ployee Assistance
Administered expenses
Ordinary annual services (Appropriation Bill No. 1)
Special appropriations
Total for program m e 2.1
Program m e 2.2: Workplace Assistance
Administered expenses
Ordinary annual services (Appropriation Bill No. 1)
Total for program m e 2.2
Program m e 2.3: Workers Com pensation Paym ents
Administered expenses
Ordinary annual services (Appropriation Bill No. 1)
Special appropriations
Total for program m e 2.3
Outcom e 2 Totals by appropriation type
Administered expenses
Ordinary annual services (Appropriation Bill No. 1)
Special appropriations
Departmental expenses
Departmental appropriation1
Expenses not requiring appropriation in the Budget year 2
Total expenses for Outcom e 2
Average staffing level (num ber)
2014–15
Estimated
actual
expenses
$'000
2015–16
Estimated
expenses
13,317
438,123
6,025
373,386
451,440
379,411
14,643
15,010
14,643
15,010
7,563
72,956
7,727
69,726
80,519
77,453
35,523
511,079
28,762
443,112
60,783
4,312
41,011
4,772
611,697
517,657
2014-15
483
2015-16
497
1
Departmental appropriation combines 'Ordinary annual services (Appropriation Bill No. 1)' and
'Revenue from independent sources (s 74)'.
2
Expenses not requiring appropriation in the Budget year are made up of depreciation expenses,
amortisation expenses, and audit fees.
$'000
Note: Departmental appropriation splits and totals are indicative estimates and may change in the
course of the budget year as government priorities change.
36
Department of Employment Budget Statements 2015–16
Contributions to Outcome 2
Programme 2.1: Employee Assistance
Programme objective
The promotion of fair workplaces by ensuring the protection of employee
entitlements in certain circumstances.
Administered items
 Coal Mining Industry (Long Service Leave) Administration Act 1992 financing
arrangements—under this Act the cost of portable long service leave
entitlements is managed through a central fund administered by the Coal
Mining Industry (Long Service Leave Funding) Corporation. Monthly levy
collection transfers are made from the consolidated revenue fund to the
central fund.
 Fair Entitlements Guarantee—established under the Fair Entitlements
Guarantee Act 2012 to provide financial assistance for certain unpaid
employment entitlements when an employee loses their job through the
liquidation or bankruptcy of their employer on or after 5 December 2012. The
recovery of costs to the Fair Entitlements Guarantee programme will be
strengthened through a two year trial of enhanced recovery activity,
including an evaluation to assess the success of the programme and review
whether further funding should be provided.
Table 2.2.1 Budgeted expenses for Programme 2.1
2014–15
Estimated
actual
$'000
2015–16
Budget
$'000
2016–17
Forw ard
estimate
$'000
2017–18
Forw ard
estimate
$'000
2018–19
Forw ard
estimate
$'000
Annual administered expenses:
General Employee Entitlements and
Redundancy Scheme
Fair Entitlements Guarantee
Special appropriations:
Coal Mining Industry (LSL) Act
1992
Fair Entitlements Guarantee Act 2012
12,817
500
6,025
6,805
1,750
1,750
174,618
263,505
174,618
198,768
174,618
199,264
174,618
195,532
174,618
195,532
Total program m e expenses
451,440
379,411
380,687
371,900
371,900
37
Department of Employment Budget Statements 2015–16
Programme 2.2: Workplace Assistance
Programme objective
To contribute to the productivity agenda by ensuring the operation of the
workplace relations system through initiatives designed to encourage employers
and employees to adopt flexible and modern workplace relations.
Administered items
 International Labour Organization (ILO)—the Australian Government’s
annual membership subscription to the ILO. The government works with
other member states and representatives from employer and employee
organisations to: participate in international policy discussions on labour
issues; contribute to technical cooperation in the Asia-Pacific region; report
on standards at the national level; and participate as a member of the ILO
Governing Body.
 Protected Action Ballots Scheme—costs incurred by the Australian Electoral
Commission in relation to protected action ballots. A protected action ballot
is a statutory prerequisite to protected industrial action under the Fair Work
Act 2009.
 Centre for Workplace Leadership—the government’s contribution to the
Centre. Funding to the Centre will cease at the end of the 2015–16 year as
contracted.
Table 2.2.2 Budgeted expenses for Programme 2.2
Annual administered expenses:
International Labour Organization
Subscription
Protected Action Ballots Scheme
Centre for Workplace Leadership
Total program m e expenses
2014–15
Estimated
actual
$'000
2015–16
Budget
9,948
1,600
3,095
10,277
1,600
3,133
10,594
1,600
-
10,620
1,600
-
10,652
1,600
-
14,643
15,010
12,194
12,220
12,252
38
$'000
2016–17 2017–18 2018–19
Forw ard Forw ard Forw ard
estimate estimate estimate
$'000
$'000
$'000
Department of Employment Budget Statements 2015–16
Programme 2.3: Workers’ Compensation Payments
Information on Workers’ Compensation Payments can be found in Comcare, the
Safety, Rehabilitation and Compensation Commission, and the Seafarers Safety,
Rehabilitation and Compensation Authority on page 94.
Table 2.2.3 Budgeted expenses for Programme 2.3
Annual administered expenses:
Comcare
Special appropriations:
Asbestos-related Claims Act 2005
Safety, Rehabilitation & Compensation
Act 1998
Total program m e expenses
2014–15
Estimated
actual
$'000
2015–16
Budget
7,563
7,727
6,194
6,235
6,279
22,887
33,211
32,574
34,472
35,849
50,069
36,515
35,312
34,109
32,614
80,519
77,453
74,080
74,816
74,742
39
$'000
2016–17 2017–18 2018–19
Forw ard Forw ard Forw ard
estimate estimate estimate
$'000
$'000
$'000
Department of Employment Budget Statements 2015–16
Outcome 2: Effectiveness Indicators
Three effectiveness indicators are used to assess the ‘health’ of the workplace
relations system: productivity and wages growth; levels of industrial action; and
use of enterprise bargaining.
Table 2.2.A The national workplace relations system supports improved
productivity outcomes
Performance
measure
Productivity growth
as measured by
output per hour
worked in the market
sector (annual, trend
terms)
ABS Wage Price
Index (annual,
seasonal adjusted
terms)
December
quarter 2013
1.9%
December
quarter 2014
0.3%
2.6%
2.5%
Comments
The data show that productivity
fell from 1.9 per cent growth
over the year to the December
quarter 2013 to 0.3 per cent over
the year to the December
quarter 2014. Recent
productivity growth numbers
may be subject to revision.
The Wage Price Index remained
steady at 2.5 per cent, compared
to 2.6 per cent the previous year.
Table 2.2.B Incidence of industrial action (allowing for variations in the
bargaining cycle)
Performance
measure
Working days lost
per thousand
employees (annual
WDL/1000E)
December
quarter 2013
12.6
December
quarter 2014
6.8
40
Comments
The incidence of industrial
disputes for the December
quarter 2014 fell to 6.8 working
days lost per thousand
employees, compared to
12.6 working days lost per
thousand employees in the same
quarter of 2013. The data have
limitations as only disputes that
result in a total of 10 or more
working days lost are counted
by the ABS survey and include
industrial action taken by state
system employees. Working
days lost is a volatile measure
which is affected by a range of
factors such as bargaining
cycles.
Department of Employment Budget Statements 2015–16
Table 2.2.C Enterprise bargaining is used by employers and employees to
negotiate pay and conditions
Performance
measure
Number of enterprise
agreements under
the Fair Work Act
2009 that have not
passed their nominal
expiry date
December
quarter 2013
23,243
agreements
covering an
estimated
2.61 million
employees
(current as at
31 December
2013)
December
quarter 2014
18,936
agreements
covering an
estimated
2.40 million
employees
(current as at
31 December
2014)
Comments
There was a fall in the number
and coverage of enterprise
agreements to 18,936
agreements covering an
estimated 2.4 million employees
as at the December quarter 2014.
The fall in the number of
agreements is primarily due to
industry bargaining cycles,
particularly in the construction
industry where a large number
of agreements that expired
earlier in 2014 had not yet been
replaced.
Outcome 2: Departmental outputs
Departmental outputs incorporate a range of programmes and activities
managed within the department that help ensure workplaces are safe, fair and
productive. This is achieved by, for example, improving the legislative
underpinnings of the workplace relations framework, leveraging
Commonwealth funding to improve safety on building sites, improving ‘return
to work’ outcomes for people injured in the workplace, protecting workers’
entitlements when their employment terminates because of liquidation or
bankruptcy of their employer and engaging with other agencies and
internationally to achieve better workplace relations outcomes. In 2015–16 the
department will:
 provide legal and policy advice on the operation of the national workplace
relations system
 support the passage of legislative amendments to the Fair Work Act 2009 and




the Fair Work (Registered Organisations) Act 2009 before the Parliament
provide legal and policy advice on key matters before industrial tribunals
and the courts
provide legal and policy advice on the Comcare Scheme, and support the
legislative passage of reforms to the Scheme
support improved practices in relation to work health and safety and
workers’ compensation
work with industry participants to improve the Commonwealth’s Seacare
scheme
41
Department of Employment Budget Statements 2015–16
 improve the performance of the building and construction industry by
supporting the passage of legislation to re-establish the Australian Building
and Construction Commission and issue a revised building code setting out
the government’s expectations for best practice workplace relations
behaviour on construction projects funded by the Commonwealth
 contribute to reviews initiated by the Fair Work Commission including the
2016 Annual Wage Review
 ensure Commonwealth funded projects are undertaken by builders with
safety systems and practices accredited by the Federal Safety Commissioner
(under the Australian Government Building and Construction WHS
Accreditation Scheme)
 work with the Asbestos Safety and Eradication Agency, Comcare, Fair Work
Commission, Fair Work Ombudsman, Office of the Fair Work Building
Industry Inspectorate, Safe Work Australia and the Workplace Gender
Equality Agency to reduce unnecessary regulatory and administrative
burden for business
 contribute to government initiated reviews including the Productivity
Commission inquiry into the workplace relations framework
 ensure timely and accurate payment of financial assistance to eligible
claimants under the Fair Entitlements Guarantee Act 2012 which protects
certain unpaid employee entitlements where employees lose their
employment due to the liquidation or bankruptcy of their employer
 administer the Centre for Workplace Leadership Fund to encourage higher
performing and innovative workplaces by strengthening Australia’s
leadership capability
 engage strategically with relevant international organisations such as the ILO
and OECD on workplace relations, work health and safety and employment
participation policy issues to advance Australia’s interests.
42
Department of Employment Budget Statements 2015–16
Table 2.2.D Outcome 2 departmental outputs performance measures
Performance indicator
2015–16 estimate
Fair Entitlements Guarantee (FEG) - Timeliness of processing claims
– percentage of claims processed within 16 weeks of receipt of an
effective claim1
FEG - Timeliness of processing claims - average processing time for
all claims2
FEG - Accuracy – less than 5% of claim decisions are incorrect 3
FEG - Stakeholder satisfaction – Claimants are satisfied with the
Department’s administration of the Fair Entitlements Guarantee 4
FEG - Stakeholder satisfaction – Insolvency practitioners are
satisfied with the Department’s administration of the Fair
Entitlements Guarantee
Building Code - Timeliness of departmental responses to client
requests for assessment of industrial instruments against the code
and guidelines
Australian Government Building and Construction WHS
Accreditation Scheme (Scheme) - Level of satisfaction of clients with
the provision of advice, information, education and promotion of
safer workplaces on Australian Government construction sites by
the Office of the Federal Safety Commissioner
Scheme - timeliness of responding to initial applications for
accreditation5
80%
14 weeks
<5%
80%
80%
95% completed
within 10 working
days
Effective or above
More than 90% of
accreditation
applications are
assessed and
contact is made
with the applicant
within 10 working
days
1
The timeliness indicator for FEG 2015–16 has been revised to account for the overall time it takes to
process claims under the scheme. Previously used indicators related to specific components of the
process only.
2
To provide additional information and transparency on processing times, a second timeliness
measure will be implemented from 2015–16.
3
The accuracy indicator has also been revised. Previously, the accuracy of decision making was
based on the number of review claim decisions which found the initial decision to be incorrect.
This encompassed only a small proportion of all initial claim decisions in the scheme. Expanding
the measure to include all claim decisions (regardless of whether they were subject to a review or
appeal of the original decision) provides more comprehensive assurance on quality in programme
delivery.
4
The stakeholder satisfaction indicator has been revised to incorporate the views of claimants.
Stakeholder satisfaction has been previously measured based on the views of insolvency
practitioners.
5
Changes to the key performance indicators for the Office of the Federal Safety Commissioner are
currently being finalised in consultation with the building and construction industry.
43
Department of Employment Budget Statements 2015–16
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 years1
Outcome 1:
Programme 1.1
Employment Services
Total m ovem ent of
adm inistered funds
1
2014–15
$'000
2015–16
$'000
2016–17
$'000
2017–18
$'000
2018–19
$'000
(2,155)
538
539
539
539
(2,155)
538
539
539
539
Figures displayed as a negative (-) represent a decrease in funds and a positive reflect an increase in
funds.
3.1.2 Special accounts
The department has no special accounts. For this reason Table 3.1.2 is not
presented.
3.1.3 Australian Government Indigenous expenditure
The department has no Australian Government Indigenous expenditure. For
this reason Table 3.1.3 is not presented.
44
Department of Employment Budget Statements 2015–16
3.2
BUDGETED FINANCIAL STATEMENTS
3.2.1 Differences in entity resourcing and financial statements
3.2.2 Analysis of budgeted financial statements
An analysis of the department’s budgeted financial statements, which consists of
the budgeted departmental financial statements and administered schedules, is
provided below. The 2014–15 estimated actual is used as the comparative year
for the analysis although some comments on broader trends in the forward
estimates are provided.
Departmental financial statements
Income Statement
The department’s income statement reflects a deficit in 2015–16. This deficit is
solely attributable to the depreciation expense for the year.
Expenses for 2015–16 are estimated to be $338.3 million. This reflects a decrease
of $8.8 million from the estimated actual expense for 2014–15 and is
predominantly due to the impact of one-off expenses in 2014–15 and new
budget measures.
Balance Sheet
The budgeted net asset position of $101.1 million for 2015–16 represents a small
increase of $2.1 million from the 2014–15 estimated actual. The accumulated
deficit apparent in the balance sheet represents the accounting treatment
applicable to depreciation expense.
The structure of the balance sheet reflects the nature of the organisation. Key
assets are office fit-out (included in land and buildings), computer and office
machines (included in infrastructure, plant and equipment), and computer
software (included in intangibles). The most significant liability relates to
employees and the leave provisions that are accrued as a result of their
employment.
Administered Statements
Income Statement
Administered revenue for the 2015–16 budget year are estimated to be
$193.3 million, consistent with the 2014–15 estimated actual.
Administered expenses in 2015–16 are estimated to be $2.0 billion, a slight
increase of $12.5 million from the 2014–15 estimated actual. This increase is
attributable to budget measures and revised programme parameters.
Balance Sheet
The minor variations in the balance sheet are as a result of changes in payables,
which reflect the timing of grant payments from year to year.
45
Department of Employment Budget Statements 2015–16
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
$'000
2016–17
Forw ard
estimate
$'000
2017–18
Forw ard
estimate
$'000
2018–19
Forw ard
estimate
$'000
221,467
95,164
30,490
218,026
86,213
34,072
217,168
76,902
32,429
217,346
78,677
30,906
216,753
79,579
29,876
347,121
338,311
326,499
326,929
326,208
20,182
460
17,713
460
17,713
460
17,713
460
17,713
460
20,642
18,173
18,173
18,173
18,173
-
-
-
-
-
-
-
-
-
-
20,642
18,173
18,173
18,173
18,173
326,479
295,989
320,138
286,066
308,326
275,897
308,756
277,850
308,035
278,159
(30,490)
(34,072)
(32,429)
(30,906)
(29,876)
-
-
-
-
-
-
-
-
-
-
Total com prehensive incom e/(loss)
(30,490)
(34,072)
(32,429)
(30,906)
(29,876)
Total com prehensive incom e/(loss)
attributable to the Australian
Governm ent
(30,490)
(34,072)
(32,429)
(30,906)
(29,876)
EXPENSES
Employee benefits
Suppliers
Depreciation and amortisation
Total expenses
LESS:
OWN-SOURCE INCOME
Ow n-source revenue
Sale of goods and rendering of services
Other revenue
Total ow n-source revenue
2014–15
Estimated
actual
$'000
2015–16
Budget
Gains
Other gains
Total gains
Total ow n-source incom e
Net cost of/(contribution by)
services
Revenue from Government
Surplus/(deficit) attributable to the
Australian Governm ent
OTHER COMPREHENSIVE INCOME
Changes in asset revaluation surplus
Total other com prehensive incom e
46
Department of Employment Budget Statements 2015–16
Table 3.2.1: Comprehensive income statement (showing net cost of
services) for the period ended 30 June (continued)
Note: Impact of net cash appropriation arrangements
2014–15
$'000
2015–16
$'000
2016–17
$'000
2017–18
$'000
2018–19
$'000
-
-
-
-
-
30,490
34,072
32,429
30,906
29,876
(30,490)
(34,072)
(32,429)
(30,906)
(29,876)
Total com prehensive incom e/(loss)
excluding depreciation/am ortisation
expenses previously funded
through revenue appropriations.
less depreciation/amortisation
expenses previously funded through
revenue appropriations 1
Total com prehensive incom e/(loss)
- as per the statem ent of
com prehensive incom e
1
From 2010–11, the government introduced net cash appropriation arrangements where Bill 1
revenue appropriations for the depreciation/amortisation expenses of non-corporate
Commonwealth entities (and select corporate Commonwealth entities) were replaced with a
separate capital budget (the Departmental Capital Budget, or DCB) provided through Bill 1 equity
appropriations. For information regarding DCBs, please refer to Table 3.2.5 Departmental Capital
Budget Statement.
Prepared on Australian Accounting Standards basis.
47
Department of Employment Budget Statements 2015–16
Table 3.2.2: Budgeted departmental balance sheet (as at 30 June)
2014–15
Estimated
actual
$'000
2015–16
Budget
$'000
2016–17
Forw ard
estimate
$'000
2017–18
Forw ard
estimate
$'000
2018–19
Forw ard
estimate
$'000
2,768
72,032
2,768
71,568
2,768
71,213
2,768
71,848
2,768
72,521
74,800
74,336
73,981
74,616
75,289
21,344
13,770
63,537
10,252
20,173
15,580
65,037
10,252
18,124
14,123
63,478
10,252
17,871
13,826
60,406
10,252
16,278
13,602
59,818
10,252
108,903
-
111,042
-
105,977
-
102,355
-
99,950
-
183,703
185,378
179,958
176,971
175,239
6,146
11,690
6,146
11,690
6,146
11,690
6,146
11,690
6,146
11,690
Total payables
Provisions
Employee provisions
Other provisions
17,836
17,836
17,836
17,836
17,836
65,592
1,315
65,128
1,315
64,773
1,315
65,408
1,315
66,081
1,315
Total provisions
66,907
66,443
66,088
66,723
67,396
Total liabilities
84,743
84,279
83,924
84,559
85,232
Net assets
98,960
101,099
96,034
92,412
90,007
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
Assets held for sale
Total assets
LIABILITIES
Payables
Suppliers
Other payables
48
Department of Employment Budget Statements 2015–16
Table 3.2.2: Budgeted departmental balance sheet (as at 30 June)
(continued)
EQUITY*
Parent entity interest
Contributed equity
Reserves
Retained surplus (accumulated
deficit)
2014–15
Estimated
actual
$'000
2015–16
Budget
$'000
2016–17
Forw ard
estimate
$'000
2017–18
Forw ard
estimate
$'000
2018–19
Forw ard
estimate
$'000
151,515
3,376
187,726
3,376
215,090
3,376
242,374
3,376
269,845
3,376
(55,931)
(90,003)
(122,432)
(153,338)
(183,214)
Total parent entity interest
98,960
101,099
96,034
92,412
90,007
Total Equity
98,960
101,099
96,034
92,412
90,007
*’Equity’ is the residual interest in assets after deduction of liabilities.
Prepared on Australian Accounting Standards basis.
49
Department of Employment Budget Statements 2015–16
Table 3.2.3: Departmental statement of changes in equity — summary of
movement (Budget year 2015–16)
Retained
Asset Contributed
earnings revaluation
equity/
reserve
capital
$'000
$'000
$'000
Opening balance as at 1 July 2015
Balance carried forw ard from previous
period
Adjustment for changes in accounting
policies
(55,931)
3,376
151,515
Total
equity
$'000
98,960
-
-
-
-
Adjusted opening balance
Com prehensive incom e
Other comprehensive income
Surplus/(deficit) for the period
(55,931)
3,376
151,515
98,960
(34,072)
-
-
(34,072)
Total comprehensive income
of w hich:
Attributable to the Australian
Government
Transactions w ith ow ners
Contributions by owners
Equity Injection - Appropriation
Departmental Capital Budget (DCB)
Sub-total transactions with owners
Transfers betw een equity components
Estim ated closing balance as at
30 June 2016
Less: non-controlling interests
Closing balance attributable to the
Australian Governm ent
(34,072)
-
-
(34,072)
(34,072)
-
-
(34,072)
-
-
-
-
9,333
26,878
36,211
-
9,333
26,878
36,211
-
(90,003)
-
3,376
-
187,726
-
101,099
-
(90,003)
3,376
187,726
101,099
Prepared on Australian Accounting Standards basis.
50
Department of Employment Budget Statements 2015–16
Table 3.2.4: Budgeted departmental statement of cash flows (for the period
ended 30 June)
$'000
2016–17
Forw ard
estimate
$'000
2017–18
Forw ard
estimate
$'000
2018–19
Forw ard
estimate
$'000
292,803
286,530
276,252
277,215
277,486
22,996
9,236
17,923
7,354
17,923
7,078
17,923
7,330
17,923
7,557
Total cash received
Cash used
Employees
Suppliers
325,035
311,807
301,253
302,468
302,966
227,039
100,897
218,490
93,317
217,523
83,730
216,711
85,757
216,080
86,886
Total cash used
Net cash from /(used by)
operating activities
INVESTING ACTIVITIES
Cash received
Proceeds from sales of property,
plant and equipment
327,936
311,807
301,253
302,468
302,966
(2,901)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
OPERATING ACTIVITIES
Cash received
Appropriations
Sale of goods and rendering of
services
Net GST received
Total cash received
Cash used
Purchase of property, plant and
equipment
Total cash used
Net cash from /(used by)
investing activities
2014–15
Estimated
actual
$'000
2015–16
Budget
55,011
36,211
27,364
27,284
27,471
55,011
36,211
27,364
27,284
27,471
(55,011)
(36,211)
(27,364)
(27,284)
(27,471)
51
Department of Employment Budget Statements 2015–16
Table 3.2.4: Budgeted departmental statement of cash flows (for the period
ended 30 June) (continued)
2014–15
Estimated
actual
$'000
FINANCING ACTIVITIES
Cash received
Contributed equity
Total cash received
Cash used
Other
Total cash used
Net cash from /(used by)
financing activities
Net increase/(decrease) in cash
held
Cash and cash equivalents at the
beginning of the reporting period
Cash and cash equivalents at the
end of the reporting period
2015–16
Budget
$'000
2016–17
Forw ard
estimate
$'000
2017–18
Forw ard
estimate
$'000
2018–19
Forw ard
estimate
$'000
55,011
36,211
27,364
27,284
27,471
55,011
36,211
27,364
27,284
27,471
-
-
-
-
-
-
-
-
-
-
55,011
36,211
27,364
27,284
27,471
(2,901)
-
-
-
-
5,669
2,768
2,768
2,768
2,768
2,768
2,768
2,768
2,768
2,768
Prepared on Australian Accounting Standards basis.
52
Department of Employment Budget Statements 2015–16
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
Total Items
PURCHASE OF NON-FINANCIAL
ASSETS
Funded by capital appropriations 1
Funded by capital appropriation DCB2
2014–15
Estimated
actual
$'000
2015–16
Budget
$'000
2016–17
Forw ard
estimate
$'000
2017–18
Forw ard
estimate
$'000
2018–19
Forw ard
estimate
$'000
31,024
23,987
26,878
9,333
27,364
-
27,284
-
27,471
-
55,011
36,211
27,364
27,284
27,471
55,011
36,211
27,364
27,284
27,471
55,011
36,211
27,364
27,284
27,471
23,987
9,333
-
-
-
31,024
26,878
27,364
27,284
27,471
TOTAL
RECONCILIATION OF CASH USED TO
ACQUIRE ASSETS TO ASSET
MOVEMENT TABLE
Total purchases
55,011
36,211
27,364
27,284
27,471
55,011
36,211
27,364
27,284
27,471
Total cash used to acquire assets
55,011
36,211
27,364
27,284
27,471
1
Includes both current Bill 2 and prior Act 2/4/6 appropriations and special capital appropriations.
2
Does not include annual finance lease costs. Includes purchases from current and previous years'
Departmental Capital Budgets (DCBs).
Prepared on Australian Accounting Standards basis.
53
Department of Employment Budget Statements 2015–16
Table 3.2.6: Statement of asset movements (Budget year 2015–16)
As a t 1 July 2 0 15
Gross book value
Ac c umulated
deprec iation/amortisation and
impairment
O pe ning ne t book ba la nc e
Ca pita l a sse t a dditions
Estima te d e xpe nditure on ne w
or re pla c e me nt a sse ts
1
By purc hase - appropriation equity
Tota l a dditions
O the r move me nts
Deprec iation/amortisation expense
Tota l othe r move me nts
As a t 3 0 June 2 0 16
Gross book value
Ac c umulated
deprec iation/amortisation and
impairment
Closing ne t book ba la nc e
1
Buildings
$'000
Other property,
plant and
equipment
$'000
Computer
software and
intangibles
$'000
Total
$'000
29,401
26,992
128,695
185,088
(65,158)
(86,437)
(8,057)
(13,222)
2 1, 3 4 4
13 , 7 7 0
63,537
98,651
6,156
6 , 15 6
6,990
6,990
23,065
23,065
36,211
3 6 , 2 11
(7,327)
(5,180)
(21,565)
(34,072)
(7 , 3 2 7 )
(5 , 18 0 )
(2 1, 5 6 5 )
(3 4 , 0 7 2 )
35,557
33,982
151,760
221,299
(15,384)
(18,402)
(86,723)
(120,509)
2 0 , 17 3
15 , 5 8 0
65,037
10 0 , 7 9 0
"Appropriation equity" refers to equity injections appropriations provided through Appropriation
Bill (No. 2) 2015-16, including CDABs.
Prepared on Australian Accounting Standards basis.
54
Department of Employment Budget Statements 2015–16
Table 3.2.7: Schedule of budgeted income and expenses administered on
behalf of Government (for the period ended 30 June)
EXPENSES
Suppliers
Subsidies
Personal benefits
Grants
Payments to corporate entities
Total expenses adm inistered on
behalf of Governm ent
LESS:
OWN-SOURCE INCOME
Ow n-source revenue
Taxation revenue
Other taxes
Total taxation revenue
Non-taxation revenue
Other revenue
2014–15
Estimated
actual
$'000
2015–16
Budget
$'000
2016–17
Forw ard
estimate
$'000
2017–18
Forw ard
estimate
$'000
2018–19
Forw ard
estimate
$'000
1,454,643
174,618
269,560
76,051
7,563
1,313,745
305,930
284,525
82,959
7,727
1,502,418
489,714
315,481
85,486
6,194
1,451,964
533,862
316,214
86,181
6,235
1,472,854
529,499
317,443
73,513
6,279
1,982,435
1,994,886
2,399,293
2,394,456
2,399,588
174,618
174,618
174,618
174,618
174,618
174,618
174,618
174,618
174,618
174,618
18,681
18,695
18,695
18,695
18,695
Total non-taxation revenue
18,681
18,695
18,695
18,695
18,695
Total ow n-source revenue
adm inistered on behalf of
Governm ent
193,299
193,313
193,313
193,313
193,313
Gains
Other gains
Total gains adm inistered on behalf
of Governm ent
Total ow n-sourced incom e
adm inistered on behalf of
Governm ent
193,299
193,313
193,313
193,313
193,313
Net cost of/(contribution by)
1,789,136 1,801,573 2,205,980 2,201,143 2,206,275
services
Surplus (deficit)
(1,789,136) (1,801,573) (2,205,980) (2,201,143) (2,206,275)
OTHER COMPREHENSIVE INCOME
Changes in asset revaluation surplus
Total other com prehensive incom e
Total com prehensive incom e/(loss) (1,789,136) (1,801,573) (2,205,980) (2,201,143) (2,206,275)
Prepared on Australian Accounting Standards basis.
55
Department of Employment Budget Statements 2015–16
Table 3.2.8: Schedule of budgeted assets and liabilities administered on
behalf of Government (as at 30 June)
ASSETS
Financial assets
Taxation receivables
Trade and other receivables
Investments accounted for using
the equity method
Total financial assets
Non-financial assets
Other non-financial assets
2014–15
Estimated
actual
$'000
2015–16
Budget
$'000
2016–17
Forw ard
estimate
$'000
2017–18
Forw ard
estimate
$'000
2018–19
Forw ard
estimate
$'000
13,207
10,129
13,207
10,129
13,207
10,129
13,207
10,129
13,207
10,129
145,477
145,477
145,477
145,477
145,477
168,813
168,813
168,813
168,813
168,813
4,980
5,297
5,297
5,323
5,329
4,980
-
5,297
-
5,297
-
5,323
-
5,329
-
173,793
174,110
174,110
174,136
174,142
Total non-financial assets
Assets held for sale
Total assets adm inistered on
behalf of Governm ent
LIABILITIES
Payables
Suppliers
Subsidies
Personal benefits
Grants
Other payables
21,642
14,810
9,441
459
2,791,026
21,642
21,642
14,810
14,810
9,441
9,441
459
459
2,779,135 2,772,281
21,642
21,642
14,810
14,810
9,441
9,441
459
459
2,765,073 2,758,699
Total payables
2,837,378
2,825,487
2,811,425
56
2,818,633
2,805,051
Department of Employment Budget Statements 2015–16
Table 3.2.8: Schedule of budgeted assets and liabilities administered on
behalf of Government (as at 30 June) (continued)
Provisions
Employee provisions
Other provisions
Total provisions
Total liabilities adm inistered on
behalf of Governm ent
Net assets/(liabilities)
2014–15
Estimated
actual
$'000
2015–16
Budget
$'000
2016–17
Forw ard
estimate
$'000
2017–18
Forw ard
estimate
$'000
2018–19
Forw ard
estimate
$'000
-
-
-
-
-
-
-
-
-
-
2,837,378
2,825,487
2,818,633
2,811,425
2,805,051
(2,663,585) (2,651,377) (2,644,523) (2,637,289) (2,630,909)
Prepared on Australian Accounting Standards basis.
57
Department of Employment Budget Statements 2015–16
Table 3.2.9: Schedule of budgeted administered cash flows (for the period
ended 30 June)
OPERATING ACTIVITIES
Cash received
Taxes
Net GST received
Other
Total cash received
Cash used
Grant
Subsidies paid
Personal benefits
Suppliers
Payments to corporate entities
Total cash used
Net cash from /(used by)
operating activities
2014–15
Estimated
actual
$'000
2015–16
Budget
$'000
2016–17
Forw ard
estimate
$'000
2017–18
Forw ard
estimate
$'000
2018–19
Forw ard
estimate
$'000
174,618
150,000
18,681
174,618
160,000
18,695
174,618
180,000
18,695
174,618
170,000
18,695
174,618
180,000
18,695
343,299
353,313
373,313
363,313
373,313
76,051
174,618
269,560
1,604,655
7,563
82,959
305,930
284,525
1,474,062
7,727
85,486
489,714
315,481
1,682,418
6,194
86,181
533,862
316,214
1,621,990
6,235
73,513
529,499
317,443
1,652,860
6,279
2,132,447
2,155,203
2,579,293
2,564,482
2,579,594
(1,789,148) (1,801,890) (2,205,980) (2,201,169) (2,206,281)
58
Department of Employment Budget Statements 2015–16
Table 3.2.9: Schedule of budgeted administered cash flows (for the period
ended 30 June) (continued)
2014–15
Estimated
actual
$'000
2015–16
Budget
$'000
2016–17
Forw ard
estimate
$'000
2017–18
Forw ard
estimate
$'000
2018–19
Forw ard
estimate
$'000
Net increase/(decrease) in cash held (1,789,148) (1,801,890) (2,205,980) (2,201,169) (2,206,281)
Cash and cash equivalents at
beginning of reporting period
Cash from Official Public Account for:
- Appropriations
1,982,491
1,995,233
2,399,323
2,394,512
2,399,624
Total cash from Official Public
Account
1,982,491
1,995,233
2,399,323
2,394,512
2,399,624
Cash to Official Public Account for:
- Appropriations
(193,343)
(193,343)
(193,343)
(193,343)
(193,343)
Total cash to Official Public Account
(193,343)
(193,343)
(193,343)
(193,343)
(193,343)
Cash and cash equivalents at end
of reporting period
-
Prepared on Australian Accounting Standards basis.
Table 3.2.10: Administered capital budget statement (for the period ended
30 June)
The department has no administered capital purchases to report. For this reason
Table 3.2.10 is not presented.
Table 3.2.11: Statement of administered asset movements (Budget year
2015–16)
The department has no administered assets to report. For this reason
Table 3.2.11 is not presented.
59
Asbestos Safety and
Eradication Agency
Entity resources and planned
performance
ASBESTOS SAFETY AND ERADICATION AGENCY
Section 1: Entity overview and resources ................................................................ 65
1.1
Strategic direction statement .......................................................................... 65
1.2
Entity resource statement ............................................................................... 66
1.3
Budget measures ............................................................................................ 67
Section 2: Outcomes and planned performance...................................................... 68
2.1
Outcomes and performance information ........................................................ 68
Section 3: Explanatory tables and budgeted financial statements ........................ 72
3.1
Explanatory tables........................................................................................... 72
3.2
Budgeted financial statements ........................................................................ 73
63
ASEA Budget Statements 2015–16
ASBESTOS SAFETY AND ERADICATION AGENCY
Section 1: Entity Overview and Resources
1.1
STRATEGIC DIRECTION STATEMENT
The Asbestos Safety and Eradication Agency (ASEA) was established by the
Asbestos Safety and Eradication Agency Act 2013. ASEA operates under the
Australian Government’s accountability and governance frameworks.
ASEA is Australia’s national agency dedicated to working with jurisdictions and
stakeholders to create a nationally consistent approach to asbestos management
and awareness to reduce the risks of asbestos related diseases. ASEA provides a
national focus on asbestos issues which go beyond workplace safety to
encompass environmental and public health issues.
ASEA is managed by a Chief Executive Officer (CEO) and supported by the
Asbestos Safety and Eradication Council. The council has nine members and a
chair, and the CEO of ASEA participates in council meetings. One position on
the council is reserved for an Australian Government representative and four
positions reserved for a state, territory or local government representative.
ASEA and the council work to coordinate the National Strategic Plan for
Asbestos Management and Awareness (NSP) which aims to prevent exposure to
asbestos fibres in order to eliminate asbestos-related disease in Australia. The
NSP establishes a five year framework for this work. ASEA is also responsible
for the administration of the National Asbestos Exposure Register as well as
other broad functions including:




reviewing and amending the NSP as required
publishing and promoting the NSP
providing advice to the Minister about asbestos safety
liaising with Commonwealth, state, territory and local and other governments,
agencies or bodies about the implementation of the NSP; as well as asbestos
safety in general
 commissioning, monitoring and promoting research about asbestos safety.
65
ASEA Budget Statements 2015–16
1.2
ENTITY RESOURCE STATEMENT
The Agency Resource Statement details the resourcing for the Asbestos Safety
and Eradication Agency at Budget Estimates. Table 1.1 outlines the total
resourcing available from all sources for the 2015–16 Budget year.
Table 1.1: Asbestos Safety and Eradication Agency Resource Statement—
Budget Estimates for 2015–16 as at Budget May 2015
Proposed at
2015–16
Budget
Total 2015–16
estimate
$'000
$'000
-
3,264
5,935
3,264
9,982
5,935
3,264
9 , 19 9
9,982
5,935
3,264
9 , 19 9
-
-
-
-
9,982
5,935
3,264
9 , 19 9
-
-
-
-
-
-
Ac tual
Available
Appropriation
2014–15
$'000
O rdina ry a nnua l se rvic e s 1
De pa rtme nta l a ppropria tion
Prior year appropriations 2
Departmental appropriation
Tota l
Tota l ordina ry a nnua l se rvic e s [A]
O the r se rvic e s 3
De pa rtme nta l non- ope ra ting
2
Prior year appropriations
Equity injec tions
Tota l
Tota l othe r se rvic e s [B]
Tota l a va ila ble a nnua l
a ppropria tions [A+ B]
S pe c ia l a ppropria tions
S pe c ia l a ppropria tions limite d by
c rite ria / e ntitle me nt
Tota l spe c ia l a ppropria tions [C]
Tota l a ppropria tions e xc luding
spe c ia l a c c ounts
S pe c ia l a c c ounts
Opening balanc e
5,068
4,914
1 Appropriation
2 Estimated
5,935
-
-
-
-
-
-
-
-
9,982
5,935
3,264
9 , 19 9
-
-
-
5,935
3,264
9 , 19 9
Tota l spe c ia l a c c ounts [D]
Tota l re sourc ing [A+ B+ C+ D]
Less appropriations drawn from
annual or spec ial appropriations
above and c redited to spec ial
ac c ounts
Tota l ne t re sourc ing for
Asbe stos S a fe ty a nd Era dic a tion
Age nc y
Estimate of
prior year
amounts
available in
2015–16
$'000
-
9,982
Bill (No.1) 2014–15
adjusted balance carried forward from previous year
3 Appropriation
Bill (No.2) 2014–15
Reader note: All figures are GST exclusive.
66
ASEA Budget Statements 2015–16
1.3
BUDGET MEASURES
ASEA does not have any new measures since the 2014–15 Budget. For this
reason Table 1.2 is not presented.
67
ASEA Budget Statements 2015–16
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 agencies achieve the
intended results of their outcome statements. Agencies 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 ASEA in achieving government outcomes.
Outcome 1: Assist in the prevention of exposure to asbestos fibres and
the elimination of asbestos-related disease in Australia through
implementing the National Strategic Plan for Asbestos Awareness and
Management in Australia.
Outcome 1 Strategy
The Asbestos Safety and Eradication Agency works with the Australian
Government, state, territory and local governments, and a wide range of
stakeholders to coordinate the National Strategic Plan for Asbestos Awareness
and Management (NSP), to:
 increase public awareness about the risks of asbestos including how to
identify and manage asbestos risks in the home
 increase evidence and share information to inform best practice and practical
strategies to inform safe management and targeted removal of asbestos to
address long term risks
 commission, monitor and promote research and information sharing about
asbestos and the elimination of asbestos-related disease, including the
management of the National Asbestos Exposure Register.
68
ASEA Budget Statements 2015–16
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
Outcom e 1: Assist in the prevention of exposure to
asbestos fibres and the elim ination of asbestos-related
disease in Australia through im plem enting the National
Strategic Plan for Asbestos Aw areness and Managem ent
in Australia
Program m e 1.1: Asbestos Safety and Eradication Agency
Departmental expenses
Departmental appropriation1
Total expenses for Outcom e 1
Average staffing level (num ber)
1
2014–15
Estimated
actual
expenses
$'000
2015–16
Estimated
expenses
4,914
3,264
$'000
4,914
3,264
2014–15
9
2015–16
12
Departmental appropriation combines 'Ordinary annual services (Appropriation Bill No. 1)' and
'Revenue from independent sources (s 74)'.
Note: Departmental appropriation splits and totals are indicative estimates and may change in the
course of the budget year as government priorities change.
Contributions to Outcome 1
Programme 1.1: Asbestos Safety and Eradication Agency
Programme Objective
The objective of the Asbestos Safety and Eradication Agency is to implement,
review, publish and promote the National Strategic Plan for Asbestos Awareness
and Management (NSP); coordinate and liaise with Australian Government, state,
territory, local and other governments, agencies or bodies about asbestos safety
and the implementation, review or amendment of the NSP; and commission and
monitor and promote research about asbestos safety in Australia and
internationally.
To be able to meet its objectives, the agency works collaboratively with
regulators, industry and agencies and bodies across the work environment,
public health and building and construction sectors that work with asbestos and
asbestos safety, and the community to achieve improved awareness of asbestos
safety.
69
ASEA Budget Statements 2015–16
Programme Expenses
Table 2.1.1 Programme expenses
2014–15
Estimated
actual
$'000
2015–16
Budget
2016–17 2017–18 2018–19
Forw ard Forw ard Forw ard
estimate estimate estimate
$'000
$'000
$'000
$'000
Annual departmental expenses:
Annual Appropriation
4,914
3,264
2,614
2,633
1,665
Total program m e expenses
4,914
3,264
2,614
2,633
1,665
Programme 1.1 Deliverables
The deliverables for the Asbestos Safety and Eradication Agency are highlighted
in the National Strategic Plan for Asbestos Awareness and Management and are
structured under the following strategies:
1.
2.
3.
4.
5.
6.
Awareness: Increase public awareness of the health risks posed by working
with or being exposed to asbestos.
Best practice: Identify and share best practice in asbestos management,
education, handling, storage and disposal.
Identification: Improve the identification and grading of asbestos and
sharing of information regarding the location of asbestos-containing
materials (ACMs).
Removal: Identify priority areas where ACMs present a risk, the barriers to
the safe removal of asbestos and review management and removal
infrastructure to estimate the capacity and rate for the safe removal of
asbestos.
Research: Commission, monitor and promote research into asbestos
exposure pathways, prevention and asbestos-related diseases to inform
policy options.
International leadership: Australia to continue to play a leadership role in a
global campaign for a worldwide asbestos ban.
70
ASEA Budget Statements 2015–16
Programme 1.1 Key Performance Indicators
The key performance indicators are framed around the strategies the agency has
put in place to achieve its outcome and the strategies contained within the
National Strategic Plan for Asbestos Awareness and Management.
Table 2.1.1.A Programme 1.1 Key performance indicators
Key performance indicator
2015–16 Target
Increase public awareness
about asbestos safety

Increasing trend in asbestos awareness

Increase in utilisation of agency information and
resources
Effectively coordinate
national issues that relate to
the plan and asbestos issues

Survey of Asbestos Safety and Eradication
Council, and committees agree the agency
effectively engages with stakeholders

Progress report on NSP demonstrates
coordination of national initiatives

Identified initiatives demonstrate reduction in
asbestos exposure risks
Identify targeted and
practical initiatives to reduce
the risks of asbestos-related
disease in Australia.
71
ASEA Budget Statements 2015–16
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
ASEA has no movement of administered funds. For this reason Table 3.1.1 is not
presented.
3.1.2 Special Accounts
ASEA has no special accounts. For this reason Table 3.1.2 is not presented.
3.1.3 Australian Government Indigenous expenditure
ASEA has no Australian Government Indigenous expenditure. For this reason
Table 3.1.3 is not presented.
72
ASEA Budget Statements 2015–16
3.2
BUDGETED FINANCIAL STATEMENTS
3.2.1 Differences in Agency Resourcing and Financial Statements
3.2.2 Analysis of Budgeted Financial Statements
The Asbestos Safety and Eradication Agency is budgeting for a zero operating
result in 2015–16 and the three forward years.
Total revenue is estimated to be $3.3 million in 2015–16, and total expenses to be
$3.3 million.
Total assets for 2015–16 are estimated to be $6 million. The majority of assets
represent appropriations receivables and property, plant and equipment.
Total liabilities for 2015–16 are estimated to be $2.3 million. The largest liabilities
are accrued employee entitlements.
73
ASEA Budget Statements 2015–16
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
$'000
2016–17
Forw ard
estimate
$'000
2017–18
Forw ard
estimate
$'000
2018–19
Forw ard
estimate
$'000
1,281
3,633
1,250
2,014
1,244
1,370
1,256
1,377
1,256
409
4,914
3,264
2,614
2,633
1,665
-
-
-
-
-
-
-
-
-
-
Gains
Other gains
Total gains
-
-
-
-
-
-
-
-
-
-
Total ow n-source incom e
-
-
-
-
-
4,914
4,914
3,264
3,264
2,614
2,614
2,633
2,633
1,665
1,665
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Total com prehensive incom e/(loss)
-
-
-
-
-
Total com prehensive incom e/(loss)
attributable to the Australian
Governm ent
-
-
-
-
-
EXPENSES
Employee benefits
Suppliers
Total expenses
2014–15
Estimated
actual
$'000
2015–16
Budget
LESS:
OWN-SOURCE INCOME
Ow n-source revenue
Other revenue
Total ow n-source revenue
Net cost of/(contribution by)
services
Revenue from Government
Surplus/(deficit) attributable to the
Australian Governm ent
OTHER COMPREHENSIVE INCOME
Changes in asset revaluation surplus
Total other com prehensive incom e
Prepared on Australian Accounting Standards basis.
74
ASEA Budget Statements 2015–16
Table 3.2.2: Budgeted departmental balance sheet (as at 30 June)
ASSETS
Financial assets
Cash and cash equivalents
Trade and other receivables
Total financial assets
Non-financial assets
Property, plant and equipment
Total non-financial assets
Assets held for sale
Total assets
LIABILITIES
Payables
Other payables
Total payables
Provisions
Employee provisions
2014–15
Estimated
actual
$'000
2015–16
Budget
$'000
2016–17
Forw ard
estimate
$'000
2017–18
Forw ard
estimate
$'000
2018–19
Forw ard
estimate
$'000
846
5,089
846
5,112
846
5,131
846
5,151
846
5,151
5,935
5,958
5,977
5,997
5,997
-
-
59
119
179
-
-
59
-
119
-
179
-
5,935
5,958
6,036
6,116
6,176
2,198
2,198
2,198
2,198
2,198
2,198
2,198
2,198
2,198
2,198
48
71
90
110
110
48
71
90
110
110
Total liabilities
2,246
2,269
2,288
2,308
2,308
Net assets
3,689
3,689
3,748
3,808
3,868
Total provisions
EQUITY*
Parent entity interest
Contributed equity
Retained surplus (accumulated
deficit)
183
183
242
302
362
3,506
3,506
3,506
3,506
3,506
Total parent entity interest
3,689
3,689
3,748
3,808
3,868
Total Equity
3,689
3,689
3,748
3,808
3,868
* 'Equity' is the residual interest in assets after deduction of liabilities.
Prepared on Australian Accounting Standards basis.
75
ASEA Budget Statements 2015–16
Table 3.2.3: Departmental statement of changes in equity—summary of
movement (Budget Year 2015–16)
Retained
Asset Contributed
earnings revaluation
equity/
reserve
capital
$'000
$'000
$'000
Opening balance as at 1 July 2015
Balance carried forw ard from previous
period
Adjustment for changes in accounting
policies
Adjusted opening balance
Com prehensive incom e
Other comprehensive income
Surplus/(deficit) for the period
Total comprehensive income
of w hich:
Attributable to the Australian
Government
Transactions w ith ow ners
Contributions by owners
Equity Injection - Appropriation
Departmental Capital Budget (DCB)
Sub-total transactions with owners
Transfers betw een equity components
Estim ated closing balance as at 30
June 2016
Less: non-controlling interests
Closing balance attributable to the
Australian Governm ent
3,506
-
183
Total
equity
$'000
3,689
-
-
-
-
3,506
-
183
3,689
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
3,506
-
-
183
-
3,689
-
3,506
-
183
3,689
-
Prepared on Australian Accounting Standards basis.
76
ASEA Budget Statements 2015–16
Table 3.2.4: Budgeted departmental statement of cash flows (for the period
ended 30 June)
2014–15
Estimated
actual
$'000
OPERATING ACTIVITIES
Cash received
Appropriations
Sale of goods and rendering of
services
4,892
2015–16
Budget
$'000
3,241
2016–17
Forw ard
estimate
$'000
2,595
2017–18
Forw ard
estimate
$'000
2,613
2018–19
Forw ard
estimate
$'000
1,665
-
-
-
-
-
Total cash received
Cash used
Employees
Suppliers
4,892
3,241
2,595
2,613
1,665
1,259
3,633
1,227
2,014
1,225
1,370
1,236
1,377
1,256
409
Total cash used
Net cash from /(used by)
operating activities
INVESTING ACTIVITIES
Cash received
Proceeds from sales of property,
plant and equipment
4,892
3,241
2,595
2,613
1,665
-
-
-
-
-
-
-
-
-
-
Total cash received
Cash used
Purchase of property, plant and
equipment
Other
-
-
-
-
-
-
-
59
-
60
-
60
-
Total cash used
Net cash from /(used by)
investing activities
-
-
59
60
60
-
-
(59)
(60)
(60)
77
ASEA Budget Statements 2015–16
Table 3.2.4: Budgeted departmental statement of cash flows (for the period
ended 30 June) (continued)
2014–15
Estimated
actual
$'000
2015–16
Budget
FINANCING ACTIVITIES
Cash received
Contributed equity
$'000
2016–17
Forw ard
estimate
$'000
2017–18
Forw ard
estimate
$'000
2018–19
Forw ard
estimate
$'000
-
-
59
60
60
Total cash received
Cash used
Other
-
-
59
60
60
-
-
-
-
-
Total cash used
Net cash from /(used by)
financing activities
Net increase/(decrease) in cash
held
Cash and cash equivalents at the
beginning of the reporting period
Cash and cash equivalents at the
end of the reporting period
-
-
-
-
-
-
-
59
60
60
-
-
-
-
-
846
846
846
846
846
846
846
846
846
846
Prepared on Australian Accounting Standards basis.
78
ASEA Budget Statements 2015–16
Table 3.2.5: Departmental capital budget statement (for the period ended
30 June)
2014–15
Estimated
actual
$'000
NEW CAPITAL APPROPRIATIONS
Capital budget - Bill 1 (DCB)
Equity injections - Bill 2
Total new capital appropriations
Provided for:
Purchase of non-financial assets
Total Items
PURCHASE OF NON-FINANCIAL
ASSETS
Funded by capital appropriations 1
Funded by capital appropriation DCB2
2015–16
Budget
$'000
2016–17
Forw ard
estimate
$'000
2017–18
Forw ard
estimate
$'000
2018–19
Forw ard
estimate
$'000
-
-
59
-
60
-
60
-
-
-
59
60
60
-
-
59
60
60
-
-
59
60
60
-
-
-
-
-
-
-
59
60
60
TOTAL
RECONCILIATION OF CASH USED TO
ACQUIRE ASSETS TO ASSET
MOVEMENT TABLE
Total purchases
-
-
59
60
60
-
-
59
60
60
Total cash used to acquire assets
-
-
59
60
60
1
Includes both current Bill 2 and prior Act 2/4/6 appropriations and special capital appropriations.
2
Does not include annual finance lease costs. Includes purchases from current and previous years'
Departmental Capital Budgets (DCBs).
Prepared on Australian Accounting Standards basis.
79
ASEA Budget Statements 2015–16
Table 3.2.6: Statement of asset movements (2015–16)
ASEA has no statement of asset movements. For that reason Table 3.2.6 is not
presented.
Table 3.2.7: Schedule of budgeted income and expenses administered on
behalf of Government (for the period ended 30 June)
ASEA has no income and expenses administered on behalf of government. For
this reason Table 3.2.7 is not presented.
Table 3.2.8 Schedule of budgeted assets and liabilities administered on
behalf of Government (as at 30 June)
ASEA has no administered assets and liabilities. For this reason Table 3.2.8 is not
presented.
Table 3.2.9: Schedule of budgeted administered cash flows (for the period
ended 30 June)
ASEA has no administered cash flows. For this reason Table 3.2.9 is not
presented.
3.2.10 Administered capital budget statement (for the period ended
30 June)
ASEA has no administered capital purchases. For this reason Table 3.2.10 is not
presented.
3.2.11 Statement of administered asset movements (Budget year 2015–16)
ASEA has no administered non-financial assets. For this reason Table 3.2.11 is
not presented.
80
Comcare, the Safety
Rehabilitation and
Compensation Commission,
and the Seafarers Safety,
Rehabilitation and
Compensation Authority
Entity resources and planned
performance
COMCARE, THE SAFETY, REHABILITATION AND
COMPENSATION COMMISSION, AND THE
SEAFARERS SAFETY, REHABILITATION AND
COMPENSATION AUTHORITY
Section 1: Entity overview and resources ................................................................ 85
1.1
Strategic direction statement .......................................................................... 85
1.2
Entity resource statement ............................................................................... 87
1.3
Budget measures ............................................................................................ 88
Section 2: Outcomes and planned performance...................................................... 89
2.1
Outcomes and performance information ........................................................ 89
Section 3: Explanatory tables and budgeted financial statements ...................... 103
3.1
Explanatory tables......................................................................................... 103
3.2
Budgeted financial statements ...................................................................... 105
83
Comcare Budget Statements 2015–16
COMCARE, THE SAFETY, REHABILITATION AND
COMPENSATION COMMISSION, AND THE
SEAFARERS SAFETY, REHABILITATION AND
COMPENSATION AUTHORITY
Section 1: Entity overview and resources
1.1
STRATEGIC DIRECTION STATEMENT
Comcare supports participation and productivity by working with employers
and employees to keep workers healthy and safe by minimising harm in the
workplaces it covers.
In addition to its claims management and regulatory responsibilities, Comcare
manages Commonwealth common law liabilities for asbestos compensation. The
agency also provides secretariat and related functions to support the Safety,
Rehabilitation and Compensation Commission (SRCC) and the Seafarers Safety,
Rehabilitation and Compensation Authority (Seacare Authority).
Comcare has consolidated its strategic functions into a single outcome:
 Supporting participation and productivity through healthy and safe
workplaces that minimise the impact of harm in workplaces covered by
Comcare.
The outcome statement provides better strategic alignment of the insurance and
regulatory functions and focuses on Comcare’s contribution in supporting
productivity and participation.
Comcare is ensuring that delivery of its strategic priorities, articulated through
its Corporate Plan, will ensure Comcare continues to be an efficient and effective
regulator, a cost effective insurer, and an adaptable organisation that shows
leadership in identifying and delivering strategies to minimise harm in the
workplace.
Comcare’s strategic priorities in 2015–16 include:
 Work, health and safety leadership – developing a policy narrative with a
focus on productivity and participation, and influencing the workplace
wellbeing dialogue through closer engagement with employers, employees,
policy makers and researchers
 Targeted regulation – maintaining a focus on harm prevention using a
modern model of regulation
 Leading insurer – delivering robust and transparent premium setting policies
and engaging with employers to achieve better outcomes in claims
management
85
Comcare Budget Statements 2015–16
 Fresh approaches – generating and understanding business intelligence to
guide better policy and operations
 Successful business – ensuring Comcare’s capability supports the vision and
obligations of the organisation.
Comcare will continue to:
 Work with employers to deliver best practice in rehabilitation and
compensation claims management to achieve early and safe return to work
for workers covered by the Comcare scheme
 Deliver education, assurance and enforcement to protect the health, safety
and welfare of workers covered by the scheme
 Provide access to compensation for people with asbestos-related diseases
where the Commonwealth has a liability through management of claims.
Comcare’s strategic direction ensures that our priority actions are clear and in
alignment with our strategic focus and ensure the coherence, capability and
adaptability of the organisation going forward.
86
Comcare Budget Statements 2015–16
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: Comcare resource statement — Budget estimates for 2015–16
as at Budget May 2015
Ac tual
Available
Appropriation
2014–15
$'000
O pe ning ba la nc e / Re se rve s a t ba nk
REV ENUE FRO M G O V ERNMENT
O rdina ry a nnua l se rvic e s
2
Outc ome 1
Outc ome 2
Outc ome 3
-
Estimate of
prior year
amounts
available in
2015–16
$'000
Proposed at
2015–16
Budget
6 17 , 14 7
$'000
-
Total
2015–16
estimate
$'000
6 17 , 14 7
1
Tota l ordina ry a nnua l se rvic e s
Tota l funds from G ove rnme nt
FUNDS FRO M INDUS TRY S O URCES
Lic enc e fees
Tota l
FUNDS FRO M O THER S O URCES
Interest
Sale of goods and servic es
Regulatory c ontributions
3
Grants from Portfolio Department
Workers' c ompensation premiums
Tota l
Tota l ne t re sourc ing for Comc a re
2,189
414
4,960
-
7,727
-
7,466
-
7,563
-
7,727
7,466
7,563
-
7,727
7,466
16,173
-
15,776
15,776
16 , 17 3
-
15 , 7 7 6
15 , 7 7 6
25,531
1,797
19,076
-
26,876
1,001
20,413
26,876
1,001
20,413
72,956
475,635
-
69,726
450,400
69,726
450,400
594,995
-
5 6 8 , 4 16
5 6 8 , 4 16
6 18 , 7 3 1
6 17 , 14 7
5 9 1, 9 19
1, 2 0 8 , 8 0 5
Comcare is not directly appropriated as it is a corporate Commonwealth entity. Appropriations are
made to the Department of Employment which are then paid to Comcare and are considered
'departmental' for all purposes.
1
Appropriation Bill (No.1) 2015–16.
2
Outcome 2 and 3 have been consolidated into Outcome 1 from 1 July 2015.
3
Grants from Portfolio Department includes special appropriations under the Safety, Rehabilitation
and Compensation Act 1988 for the payment of pre-premium claims costs and the Asbestos-related
Claims (Management of Commonwealth Liabilities) Act 2005 for asbestos-related claims settlements.
All figures are GST exclusive.
87
Comcare Budget Statements 2015–16
1.3
BUDGET MEASURES
Budget measures in Part 1 relating to Comcare are detailed in Budget Paper
No. 2 and are summarised below.
Table 1.2: Entity 2015–16 Budget measures
Part 1: Measures announced since the 2014–15 Mid-Year Economic and
Fiscal Outlook (MYEFO)
Programme
Expense m easures
Simplifying Parliamentary Budgets
Departmental expenses
2014–15 2015–16 2016–17 2017–18 2018–19
$'000
$'000
$'000
$'000
$'000
1.1
-
261
209
210
212
Total
Total expense m easures
Departmental
-
261
209
210
212
-
261
209
210
212
Total
-
261
209
210
212
Prepared on a Government Finance Statistics (fiscal) basis
88
Comcare Budget Statements 2015–16
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 Comcare in achieving government outcomes.
Outcome and programme changes
The following figure shows the consolidation of the three outcomes in 2014–15
to a single outcome in 2015–16 and the changes in the programme components.
89
Comcare Budget Statements 2015–16
Figure 2 Changes to Comcare’s outcome structure
2014–15 Financial year
Outcome 1: The
protection of the
health, safety and
welfare at work of
workers covered by the
Comcare scheme
through education,
assurance and
enforcement.
Outcome 2: An early and safe return to
work and access to compensation for
injured workers covered by the
Comcare scheme through working in
partnership with employers to create
best practice in rehabilitation and quick
and accurate management of workers’
compensation claims.
Outcome 3: Access to
compensation for
people with asbestosrelated diseases
where the
Commonwealth has a
liability, through
management of
claims.
Programme 1:
Comcare
Programme 2: Comcare
Programme 2:
Comcare
•
Component 2.1—SRC Act
Regulation
•
Component 2.2—Management of
Premium Claims
•
Component 2.3—Management of
Pre-premium Claims
•
Component 2.4—Provide support
to the Seafarers Safety
Rehabilitation and Compensation
Authority
2015–16 Financial year
Outcome 1: Support participation and productivity through healthy and safe workplaces that
minimise the impact of harm in workplaces covered by Comcare.
Programme 1: Comcare
•
Component 1.1—Work Health, Safety and Rehabilitation Regulation
•
Component 1.2—Comcare Workers’ Compensation Scheme Management
•
Component 1.3— Component 1.3—Safety, Rehabilitation and Compensation Commission
and Seafarers Safety, Rehabilitation and Compensation Authority Support
•
Component 1.4—Premium Claims
•
Component 1.5—Pre-premium Claims
•
Component 1.6—Asbestos Claims
90
Comcare Budget Statements 2015–16
Outcome 1: Support participation and productivity through healthy and
safe workplaces that minimise the impact of harm in workplaces covered
by Comcare.
Outcome 1 strategy
Comcare works with employers, employees and their representatives, state and
territory bodies and other organisations to contribute to national goals in
improving work health and safety and minimising the impact of harm in
workplaces.
It does this through:
 supporting employers, employees and other duty holders to create and
maintain healthy and safe workplaces through the regulation of work health,
safety and rehabilitation in workplaces covered by Comcare
 minimising the impact of harm in workplaces through effective and efficient
management of the Comcare workers’ compensation scheme
 improving the quality and effectiveness of compensation delivery, including
improving return to work and health outcomes
 maintaining the sustainability and accountability of the scheme
 supporting the SRCC and the Seacare Authority in their statutory roles.
In 2015–16, Comcare will continue to strengthen its position as a leader in work
health and safety by identifying and communicating best practice, and
promoting a broad understanding of our role and responsibilities.
Effective work health and safety regulation remains a priority for Comcare.
Regulatory activities will continue to be targeted and focussed on harm
prevention, with annual campaigns focused on minimising the drivers of illness
and injury in the Comcare Scheme. Comcare is committed to delivering
regulation consistent with the Australian Government’s Regulator Performance
Framework. Comcare engages in a national approach for scheme efficiency and
sustainability and will strengthen cost recovery arrangements in order to
increase transparency and accountability.
To ensure improved return to work outcomes, Comcare will engage with
employers and employees to support workers through a targeted approach
using our Active Management Model and continuing work on the Health
Benefits of Work initiative.
Further measures that will support a collaborative culture and ensure a
successful business into the future include ensuring all roles have a clear link to
the delivery of Comcare’s outcome, effective management of strategic and
operational risks and ensuring stronger alignment of corporate planning and
budgeting.
91
Comcare Budget Statements 2015–16
Outcome expense statement
Table 2.1 provides an overview of the total expenses for Outcome 1, by
programme for 2015–16.
Table 2.1: Budgeted expenses for Outcome 1
Outcom e 1: Support participation and productivity through
healthy and safe w orkplaces that minimise the impact of
harm in w orkplaces covered by Comcare
2014–151
Estimated actual
expenses
$'000
2015–16
Estimated
expenses
$'000
7,563
72,956
16,173
512,928
8,825
7,727
69,726
15,776
429,654
(10,014)
618,445
512,869
7,563
72,956
16,173
512,928
8,825
7,727
69,726
15,776
429,654
(10,014)
618,445
2014-15
610
512,869
2015-16
652
Program m e 1.1: Com care Departm ental Outcom e 1
Revenue from Government
Ordinary annual services (Appropriation Bill No. 1)
Grants received from portfolio department
Revenues from industry sources
Revenues from other independent sources
Revenues from other independent sources 2
Total for Program m e 1.1
Outcom e 1 totals by resource type
Revenue from Government
Ordinary annual services (Appropriation Bill No. 1)
Grants received from portfolio department
Revenues from industry sources
Revenues from other independent sources
Revenues from other independent sources 2
Total expenses for Outcom e 1
Average staffing level (num ber)
1
Figures for 2014–15 are aggregates of the previous three outcomes.
2
This relates to non-cash movements in workers' compensation claims liabilities and asbestosrelated claims liabilities.
92
Comcare Budget Statements 2015–16
Contributions to Outcome 1
Programme 1.1: Comcare Departmental Outcome 1
Programme objective
 To promote healthy and safe workplaces and prevent harm in workplaces
covered by Comcare through regulation of health, safety and rehabilitation.
 To implement and maintain Comcare workers’ compensation scheme
policies and guidance and report of scheme effectiveness.
 To enable the SRCC management and regulation of self-insured licensees in
the Comcare scheme under the Safety Rehabilitation and Compensation Act 1988
(SRC Act) and the Seacare Authority operations under the Seafarers Safety,
Rehabilitation and Compensation Act 1992 (Seafarers Act) and relevant
legislation.
 To deliver timely and appropriate management of premium claims.
 To support stakeholders in achieving return to work and health outcomes.
 To deliver value for money and financial sustainability across claim
management operations and services.
 To deliver timely and appropriate management of pre-premium claims.
 To deliver timely and appropriate management of claims under the AsbestosRelated Claims (Management of Commonwealth Liabilities) Act 2005 (ARC Act).
93
Comcare Budget Statements 2015–16
Programme expenses
 Comcare is maintaining resourcing to match the government’s expectations
about the level of regulatory intervention and the need to continue the
positive trend in injury prevention.
 The Special Appropriation under s90D of the SRC Act (Grants received from
portfolio departments) relates to workers’ compensation claims that were
accepted prior to the establishment of the Comcare premium scheme on
1 July 1989. The costs of these claims are funded from the Consolidated
Revenue Fund.
 Expenses for claims accepted since 1 July 1989 are funded from premium
revenue paid to Comcare and do not require appropriation.
Table 2.1.1 Programme expenses
Annual departmental expenses:
Annual Appropriation
Grants received from portfolio department
Expenses not requring appropriation in the
Budget year
Expenses not requring appropriation in the
Budget year 2
Total program m e expenses
2014–151
Estimated
actual
$'000
2015–16
Budget
$'000
2016–17
Forw ard
estimate
$'000
7,563
72,956
7,727
69,726
6,194
67,886
6,235
68,581
6,279
68,463
529,101
445,430
451,346
464,196
482,094
8,825
(10,014)
(6,854)
(7,208)
(6,374)
618,445
512,869
518,572
531,804
550,462
2017–18 2018–19
Forw ard Forw ard
estimate estimate
$'000
$'000
1
Figures for 2014-15 are aggregates of the previous three outcomes.
2
This relates to non-cash movements in workers' compensation claims liabilities and asbestosrelated claims liabilities.
94
Comcare Budget Statements 2015–16
Programme components






Component 1.1—Work Health, Safety and Rehabilitation Regulation
Component 1.2—Comcare Workers’ Compensation Scheme Management
Component 1.3—SRCC and Seacare Authority Support
Component 1.4—Premium Claims
Component 1.5—Pre-premium Claims
Component 1.6—Asbestos Claims
95
Comcare Budget Statements 2015–16
Table 2.2 Programme components
1.1 - Work Health, Safety and
Rehabilitation Regulation
Annual departmental expenses:
Annual Appropriation
Expenses not requiring appropriation in
the Budget year
2014–151
Estimated
actual
$'000
2015–16
Budget
$'000
2016–17
Forw ard
estimate
$'000
2017–18
Forw ard
estimate
$'000
2018–19
Forw ard
estimate
$'000
2,189
2,164
746
751
755
27,319
26,887
27,119
27,633
27,752
Total component expenses
1.2 - Comcare Workers' Compensation
Scheme Management
Expenses not requiring appropriation in
the Budget year
29,508
29,051
27,865
28,384
28,507
8,509
8,376
7,228
7,344
7,377
Total component expenses
1.3 - SRCC and Seacare Authority
Support
Annual departmental expenses:
Annual Appropriation
Expenses not requiring appropriation in
the Budget year
8,509
8,376
7,228
7,344
7,377
414
388
365
368
371
4,112
4,067
3,910
3,930
3,946
Total component expenses
1.4 - Premium claims
Annual departmental expenses:
Annual Appropriation
Expenses not requiring appropriation in
the Budget year
4,526
4,455
4,275
4,298
4,317
-
261
209
210
212
527,042
435,135
442,690
455,468
473,786
527,042
435,396
442,899
455,678
473,998
50,069
36,515
35,312
34,109
32,614
(31,970)
(32,762)
(30,728)
(28,580)
(26,095)
18,099
3,753
4,584
5,529
6,519
4,960
4,914
4,874
4,906
4,941
22,887
33,211
32,574
34,472
35,849
Total component expenses
1.5 - Pre-premium claims
Grants received from portfolio
department
Expenses not requiring appropriation in
the Budget year
Total component expenses
1.6 - Asbestos claims
Annual departmental expenses:
Annual Appropriation
Grants received from portfolio
department
Expenses not requiring appropriation in
the Budget year
Total component expenses
Total program m e expenses
1
2,914
(6,287)
(5,727)
(8,807)
(11,046)
30,761
31,838
31,721
30,571
29,744
618,445
512,869
518,572
531,804
550,462
2014–15 expenses for components 1.1, 1.2 and 1.3 have been reclassified to align with the new
programme components in 2015–16.
96
Comcare Budget Statements 2015–16
Programme 1.1 Deliverables
Component 1.1 – Work Health, Safety and Rehabilitation Regulation
 Perform the functions of the regulator under the Work Health and Safety Act
(Cth) 2012 (WHS Act).
 Perform the rehabilitation regulatory functions set out in the SRC Act.
 Contribute to the delivery of the Australian Work Health and Safety Strategy
2012–2022.
Component 1.2 – Comcare Workers’ Compensation Scheme Management
 Perform the scheme management functions set out in the SRC Act.
 Co-operate with other bodies or persons with the aim of reducing the
incidence of injury to employees.
 Research and promote the adoption of effective strategies and procedures for
the rehabilitation of injured workers pursuant to the SRC Act.
Component 1.3 – SRCC and Seacare Authority Support
 Provide the SRCC with such secretarial and other assistance, and make
available to it the services of such members of Comcare’s staff and such other
resources, as the SRCC reasonably requires from time to time for the proper
performance of its functions or exercise of its powers.
 Provide the Seacare Authority such secretarial and other assistance, and
make available to it the services of such members of Comcare’s staff and such
other resources as the Seacare Authority reasonably requires from time to
time for the proper performance of its functions or exercise of its powers.
Component 1.4 – Premium Claims






Deliver a better practice compensation model.
Enhance effective partnerships with employers.
Influence rehabilitation and clinical stakeholders.
Influence, prepare for and respond to legislative change.
Identify and address opportunities for improved performance.
Deliver a premium model that is robust, transparent and contemporary.
97
Comcare Budget Statements 2015–16
Component 1.5 – Pre-premium Claims
 Deliver a better practice compensation model.
 Identify and address opportunities for improved performance.
Component 1.6 – Asbestos Claims
 Deliver a better practice compensation model.
 Identify and address opportunities for improved performance.
Programme 1.1 Key performance indicators
The key performance indicators for this outcome are in Tables 2.2.A to 2.2.G.
Table 2.2.A Component 1.1 – Work Health Safety and Rehabilitation
Regulation
Key performance indicators
2014–15
Revised
budget
2015–16
Budget
2016–17
Forward
Estimate
2017–18
2018–19
Forward
Estimate
Forward
Estimate
Achievement of the
Australian Work Health and
Safety Strategy 2012–2020
targets and initiatives
Yes
Yes
Yes
Yes
Yes
Compliance with the
Nationally Consistent
Approval Framework for
Workplace Rehabilitation
Providers by workplace
rehabilitation programme
providers approved by
Comcare
Yes
Yes
Yes
Yes
Yes
Achievement of Regulator
Performance Framework
requirements
Yes
Yes
Yes
Yes
Yes
98
Comcare Budget Statements 2015–16
Table 2.2.B Component 1.2 Comcare Workers’ Compensation Scheme
Management
Key performance indicators
2014–15
Revised
budget
2015–16
Budget
2016–17
Forward
Estimate
2017–18
2018–19
Forward
Estimate
Forward
Estimate
Returned to Work across
scheme participants(i.e. the
proportion of injured
workers with 10 or more
days off work, who returned
to work for any period of
time at some stage since
they had their first day off
work)
90%
90%
90%
90%
90%
Current Return to Work
(CRTW) (i.e. the percentage
of injured workers with 10
or more days off work, who
had submitted a claim 7–9
months prior to the survey,
and who are working in a
paid job at the time of the
survey)
90%
90%
90%
90%
90%
Employer satisfaction with
scheme management
N/A
90%
90%
90%
90%
Table 2.2.C Component 1.3 SRCC and Seacare Authority Support
Key performance indicators
2014–15
Revised
budget
2015–16
Budget
2016–17
Forward
Estimate
2017–18
2018–19
Forward
Estimate
Forward
Estimate
SRCC satisfaction with
support provided by
Comcare
Satisfied
Satisfied
Satisfied
Satisfied
Satisfied
Seacare Authority
satisfaction of support
provided by Comcare
Satisfied
Satisfied
Satisfied
Satisfied
Satisfied
99
Comcare Budget Statements 2015–16
Table 2.2.D Component 1.4 – Premium claims
Key performance indicators
2015–16
Budget
2016–17
Forward
Estimate
2017–18
2018–19
Forward
Estimate
Forward
Estimate
71%
75%
79%
84%
88%
2.12%
2.04%
1.98%
1.93%
1.87%
Claims continuance rate (i.e.
the percentage of claims with
4 weeks of incapacity that
continued to 13 weeks or
more of incapacity)
58%
57%
56%
55%
54%
Current return to work rate
(i.e the percentage of injured
workers from premium
payers with 10 or more days
off work, who had submitted
a claim 7–9 months prior to
the survey, and who are
working in a paid job at the
time of the survey)
90%
90%
90%
90%
90%
Injured worker satisfaction
with recovery and support
service
81%
N/A
N/A
N/A
N/A
Injured worker satisfaction
with services as part of the
Comcare index
N/A
85%
87%
90%
90%
2014–15
Revised
budget
Funding ratio (i.e. the
percentage of premiumrelated total assets to
premium-related liabilities )
Commonwealth average
premium rate
100
Comcare Budget Statements 2015–16
Table 2.2.E Component 1.4 – Premium claims (continued)
Key performance indicators
2014–15
Revised
budget
2015–16
Budget
2016–17
Forward
Estimate
2017–18
2018–19
Forward
Estimate
Forward
Estimate
Timeliness of claims
determination (i.e.
percentage of new claims
determined within 20
calendar days for injury
claims and 60 days for
disease claims)
85%
100%
100%
100%
100%
Timeliness of determined
claims payment (i.e.
percentage of non-incapacity
items paid or rejected within
7 calendar days for
reimbursement to employees
or trustees, and 28 calendar
days for other payments)
90%
100%
100%
100%
100%
2015–16
Budget
2016–17
Forward
Estimate
2017–18
2018–19
Forward
Estimate
Forward
Estimate
100%
100%
100%
100%
Table 2.2.F Component 1.5 Pre-premium claims
Key performance indicators
2014–15
Revised
budget
Timeliness of determined
claims payment (i.e.
percentage of nonincapacity items paid or
rejected within 7 calendar
days for reimbursement to
employees or trustees, and
28 calendar days for other
payments)
90%
101
Comcare Budget Statements 2015–16
Table 2.2.G Component 1.6 Asbestos Claims
Key performance indicators
2014–15
Revised
budget
2015–16
Budget
2016–17
Forward
Estimate
2017–18
2018–19
Forward
Estimate
Forward
Estimate
Timeliness of claims
resolution (i.e. percentage of
primary asbestos claims
resolved within 180 calendar
days)
65%
80%
80%
80%
80%
Third party recovery rate
(i.e. percentage of the value
of asbestos claims
settlements recovered from
third parties)
5%
10%
10%
10%
10%
102
Comcare Budget Statements 2015–16
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
Comcare has no movement of administered funds to report. For this reason
Table 3.1.1 is not presented.
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 the special account for which
the Seacare Authority is responsible.
Table 3.1.2: Estimates of special account flows and balances
Outcome
Seafarers Rehabilitation and
Compensation Account
s78 PGPA Act (A)
Total special accounts
2015–16 Budget estim ate
1
2*
Opening
balance
$'000
Receipts Payments Adjustments
$'000
$'000
$'000
Closing
balance
$'000
1,304
1,304
132
132
(132)
(132)
-
1,304
1,304
1,304
1,304
132
132
(132)
(132)
-
1,304
1,304
(A) = Administered.
*In 2015–16 Comcare has streamlined its outcome structure to improve the alignment of its
programmes in accordance with its vision and revised organisation structure. Previously the work
associated with the Seafarers Rehabilitation and Compensation Account formed part of Outcome 2.
The Special Account was established for the purpose of providing a safety net
under section 96 of the Seafarers Act for the compensation and rehabilitation of
injured seafarers not otherwise covered by an employer.
103
Comcare Budget Statements 2015–16
Transactions against this special account reflect:
 Levy collections from maritime operators;
 Expenses incurred in the administration of the Seafarers Safety Net fund and
claim payments (if any).
3.1.3 Australian Government Indigenous expenditure
Comcare has no Australian Government Indigenous expenditure to report. For
this reason Table 3.1.3 is not presented.
104
Comcare Budget Statements 2015–16
3.2
BUDGETED FINANCIAL STATEMENTS
3.2.1 Differences in entity resourcing and financial statements
The difference between the available resources shown in Table 1.1: Comcare
resource statement and Table 3.2.1: Comprehensive Income Statement is due to
prior year amounts available in 2015–16. The prior year amounts relate to
retained premium funds, which are held to discharge future premium claims
liabilities. Table 3.2.2: Budgeted Departmental Balance Sheet also includes
significant financial assets (appropriations receivable) which will fund claim
payments over the lifetime of the outstanding claims liabilities.
3.2.2 Analysis of budgeted financial statements
Income
Comcare’s total income in 2015–16 is budgeted at $581.9 million, compared to
$627.6 million in 2014–15 (a decrease of $45.7 million).
Revenue from independent sources, which excludes annual appropriations and
other cash and non-cash appropriations received from the portfolio department,
is budgeted at $514.5 million (refer to table below).
Table 3.2.2.A Revenue from independent sources
2014–15
Estimated actual
$'000
475,635
16,173
19,076
25,531
1,797
538,212
Workers' compensation premium
Licence fees
Regulatory contributions
Interest
Sales of goods and rendering of services
Total
2015–16
Budget estimate
$'000
450,400
15,776
20,413
26,876
1,001
514,466
The decrease in revenue is mainly due to expected reduction in premium
revenue. The key factors contributing to a lower level of premium in 2015–16
include a notable reduction in employee numbers and a lower additional margin
in response to improved funding ratio of the scheme.
Expenses
Comcare’s total expenses in 2015–16 are budgeted at $512.9 million, compared to
$618.4 million in 2014–15 (a decrease of $105.6 million).
Claims expenses are budgeted to decrease by $103.9 million based on projections
provided by independent actuarial assessment. While benefits payments is
expected to increase by $18.8 million, movement in outstanding claims liabilities
is expected to be significantly less in 2015–16 ($65.0 million in 2015–16 compared
to $187.7 million in 2014–15). Movement in outstanding claims liabilities for
2014–15 has been revised to reflect a significant increase in claims provisions
due primarily to unfavourable economic assumptions in valuing long term
105
Comcare Budget Statements 2015–16
liabilities. This increases the claims expenses in 2014–15 despite the fact that
outstanding claims liabilities before economic adjustments have been reducing
in the past two years. Economic assumptions used in the 2015–16 budget
represent less volatile economic conditions in the next financial year.
Comcare’s administration expenses are budgeted to reduce in 2015–16 by
$1.6 million (i.e. from $111.8 million to $110.2 million), reflecting Comcare’s
ongoing commitment to improve administration efficiency.
Operating Result
Comcare’s operating result in 2015–16 is budgeted at a surplus of $69.0 million.
This, along with budgeted surpluses over forward years will contribute to
restoring the premium scheme’s financial health.
Comcare’s expected operating result in 2014-15 has reduced significantly since
the publishing of the 2014–15 Portfolio Budget Statements. This is in line with
the mid-year valuation of outstanding claims liabilities by Comcare’s
independent actuaries and is mainly due to unfavourable movements in
economic assumptions used in the valuation of long term liabilities. It is
important to note, however, that the final operating result is subject to a further
assessment of the outstanding claims liabilities as at 30 June 2015.
Claims Liability
Comcare has three separate claims liabilities:
 Premium workers’ compensation claims—these relate to workers’
compensation claims from premium paying agencies with a date of injury on
or after 1 July 1989.
 Pre-premium workers’ compensation claims—these relate to workers’
compensation claims with a date of injury before 1 July 1989. It is expected
that pre-premium claims liabilities will decrease over time as claims are
settled.
 Asbestos-related common law liabilities—these relate to asbestos related
claims where the Commonwealth has a liability.
In the 2015–16 Portfolio Budget Statements, all claims liability provisions are
based on independent actuarial valuations on the basis of the central estimate
plus a risk margin that would achieve a 75 per cent probability of sufficiency.
106
Comcare Budget Statements 2015–16
Estimates for gross claims liabilities as at 30 June each year are outlined in the
table below.
Table 3.2.2.B Estimates for gross claims liabilities as at 30 June each year
2014–15
$'000
Workers' compensation liabilities
Premium
2,968,623
Pre-premium
389,737
Asbestos related - common law
979,860
2015–16
$'000
3,072,470
356,967
972,720
107
2016–17
$'000
3,176,769
326,231
966,280
2017–18
$'000
3,281,633
297,642
956,480
2018–19
$'000
3,391,808
271,539
944,300
Comcare Budget Statements 2015–16
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
Claims payments
Claims - Movement in liabilities
Total expenses
LESS:
OWN-SOURCE INCOME
Ow n-source revenue
Sale of goods and rendering of services
Licence fees
Regulatory contributions
Interest
Grants received from portfolio
department
Workers' compensation premium
Other non-tax revenue1
Total ow n-source revenue
Net cost of/(contribution by)
services
Revenue from Government
Surplus/(deficit) attributable to the
Australian Governm ent
OTHER COMPREHENSIVE INCOME
Changes in asset revaluation surplus
Total other com prehensive incom e
Total com prehensive incom e/(loss)
Total com prehensive incom e/(loss)
attributable to the Australian
Governm ent
1
2014–15
Estimated
actual
$'000
2015–16
Budget
$'000
2016–17
Forw ard
estimate
$'000
2017–18
Forw ard
estimate
$'000
2018–19
Forw ard
estimate
$'000
70,347
33,700
7,765
318,889
187,744
69,516
33,563
7,071
337,716
65,003
64,435
31,433
7,071
347,810
67,823
64,741
31,931
7,071
360,719
67,342
65,520
32,297
7,071
372,675
72,899
618,445
512,869
518,572
531,804
550,462
1,797
16,173
19,076
25,531
1,001
15,776
20,413
26,877
1,018
16,045
20,760
30,606
1,035
16,317
21,113
35,015
1,053
16,595
21,471
39,553
72,956
475,635
8,825
619,993
69,726
450,400
(10,014)
574,179
67,886
461,000
(6,854)
590,461
68,581
471,500
(7,208)
606,353
68,463
482,300
(6,374)
623,061
(1,548)
7,563
(61,310)
7,727
(71,889)
6,194
(74,549)
6,235
(72,599)
6,279
9,111
69,037
78,083
80,784
78,878
9,111
69,037
78,083
80,784
78,878
9,111
69,037
78,083
80,784
78,878
This relates to non-cash movements in workers' compensation claims liabilities and
asbestos-related claims liabilities.
Prepared on Australian Accounting Standards basis.
108
Comcare Budget Statements 2015–16
Table 3.2.2: Budgeted departmental balance sheet (as at 30 June)
ASSETS
Financial assets
Cash and cash equivalents
Trade and other receivables
Other financial assets
Total financial assets
Non-financial assets
Property, plant and equipment
Intangibles
Other non-financial assets
Total non-financial assets
Total assets
LIABILITIES
Payables
Suppliers
Other payables
2014–15
Estimated
actual
$'000
2015–16
Budget
$'000
2016–17
Forw ard
estimate
$'000
2017–18
Forw ard
estimate
$'000
2018–19
Forw ard
estimate
$'000
617,147
2,862,325
8,174
765,588
2,847,291
8,174
913,435
2,837,831
8,174
1,065,761
2,827,742
8,174
1,231,021
2,820,361
8,174
3,487,646
3,621,053
3,759,440
3,901,677
4,059,556
13,112
7,713
1,221
13,771
4,083
1,221
23,980
103
1,221
27,509
903
1,221
22,138
503
1,221
22,046
19,075
25,304
29,633
23,862
3,509,692
3,640,128
3,784,744
3,931,310
4,083,418
9,562
6,255
9,562
6,255
9,562
6,255
9,562
6,255
9,562
6,255
Total payables
Provisions
Employee provisions
Other provisions
15,817
15,817
15,817
15,817
15,817
16,925
4,342,044
16,465
4,403,903
17,781
4,469,120
19,102
4,533,581
20,440
4,605,473
Total provisions
4,358,969
4,420,368
4,486,901
4,552,683
4,625,913
Total liabilities
4,374,786
4,436,185
4,502,718
4,568,500
4,641,730
Net assets
(865,094)
(796,057)
(717,974)
(637,190)
(558,312)
7,717
7,717
7,717
7,717
7,717
(872,811)
(865,094)
(865,094)
(803,774)
(796,057)
(796,057)
(725,691)
(717,974)
(717,974)
(644,907)
(637,190)
(637,190)
(566,029)
(558,312)
(558,312)
EQUITY
Parent entity interest
Contributed equity
Retained surplus
(accumulated deficit)
Total parent entity interest
Total Equity
Prepared on Australian Accounting Standards basis.
109
Comcare Budget Statements 2015–16
Table 3.2.3: Departmental statement of changes in equity — summary of
movement (Budget year 2015–16)
Retained
Asset
Other Contributed
earnings revaluation reserves
equity/
reserve
capital
$'000
$'000
$'000
$'000
Opening balance as at 1 July 2015
Balance carried forw ard from previous
period
Adjustment for changes in accounting
policies
Adjusted opening balance
Com prehensive incom e
Surplus/(deficit) for the period
Total comprehensive income
Estim ated closing balance as at
30 June 2016
Less: non-controlling interests
Closing balance attributable to the
Australian Governm ent
(872,811)
-
-
Total
equity
$'000
7,717 (865,094)
-
-
-
(872,811)
-
-
69,037
-
-
-
69,037
69,037
-
-
-
69,037
(803,774)
-
-
-
7,717 (796,057)
-
(803,774)
-
-
7,717 (796,057)
Prepared on Australian Accounting Standards basis.
110
-
-
7,717 (865,094)
Comcare Budget Statements 2015–16
Table 3.2.4: Budgeted departmental statement of cash flows (for the period
ended 30 June)
$'000
2016–17
Forw ard
estimate
$'000
2017–18
Forw ard
estimate
$'000
2018–19
Forw ard
estimate
$'000
7,563
7,727
6,194
6,235
6,279
37,046
25,531
37,190
26,876
37,821
30,606
38,466
35,015
39,119
39,553
72,956
475,635
69,726
450,400
67,886
461,000
68,581
471,500
68,465
482,299
Total cash received
Cash used
Employees
Suppliers
Net GST paid
Other
618,731
591,919
603,507
619,797
635,715
68,908
33,703
1
318,889
68,099
33,563
337,716
63,122
31,428
347,810
63,424
31,928
360,719
64,183
31,297
372,675
Total cash used
Net cash from /(used by)
operating activities
INVESTING ACTIVITIES
Cash used
Purchase of property, plant and
equipment
421,501
439,378
442,360
456,071
469,155
197,230
152,541
161,147
163,726
166,560
2,400
4,100
13,300
11,400
1,300
2,400
4,100
13,300
11,400
1,300
(2,400)
(4,100)
(13,300)
(11,400)
(1,300)
422,317
617,147
765,588
913,435
1,065,761
617,147
765,588
913,435
1,065,761
1,231,021
OPERATING ACTIVITIES
Cash received
Appropriations
Sale of goods and rendering of
services
Interest
Grants received from portfolio
department
Other
Total cash used
Net cash from /(used by)
investing activities
Cash and cash equivalents at the
beginning of the reporting period
Cash and cash equivalents at the
end of the reporting period
2014–15
Estimated
actual
$'000
2015–16
Budget
Prepared on Australian Accounting Standards basis.
111
Comcare Budget Statements 2015–16
Table 3.2.5: Departmental capital budget statement (for the period ended
30 June)
PURCHASE OF NON-FINANCIAL
ASSETS
Funded internally from departmental
resources
2014–15
Estimated
actual
$'000
2015–16
Budget
$'000
2016–17
Forw ard
estimate
$'000
2017–18
Forw ard
estimate
$'000
2018–19
Forw ard
estimate
$'000
2,400
4,100
13,300
11,400
1,300
TOTAL
RECONCILIATION OF CASH USED TO
ACQUIRE ASSETS TO ASSET
MOVEMENT TABLE
Total purchases
2,400
4,100
13,300
11,400
1,300
2,400
4,100
13,300
11,400
1,300
Total cash used to acquire assets
2,400
4,100
13,300
11,400
1,300
Prepared on Australian Accounting Standards basis.
112
Comcare Budget Statements 2015–16
Table 3.2.6: Statement of asset movements (Budget year 2015–16)
As a t 1 July 2 0 15
Gross book value
Ac c umulated
deprec iation/amortisation and
impairment
O pe ning ne t book ba la nc e
Ca pita l a sse t a dditions
Estima te d e xpe nditure on ne w
or re pla c e me nt a sse ts
By purc hase
Tota l a dditions
O the r move me nts
Deprec iation/amortisation expense
Tota l othe r move me nts
As a t 3 0 June 2 0 16
Gross book value
Ac c umulated
deprec iation/amortisation and
impairment
Closing ne t book ba la nc e
Other property,
plant and
equipment
$'000
Computer software
and intangibles
$'000
$'000
32,824
19,810
52,634
(19,712)
13 , 112
(12,097)
7 , 7 13
(31,809)
20,825
4,100
4 , 10 0
-
4,100
4 , 10 0
Total
(3,441)
(3,630)
(7,071)
(3 , 4 4 1)
(3 , 6 3 0 )
(7 , 0 7 1)
36,924
19,810
56,734
(23,153)
(15,727)
(38,880)
13 , 7 7 1
4,083
17 , 8 5 4
Prepared on Australian Accounting Standards basis.
113
Comcare Budget Statements 2015–16
Table 3.2.7: Schedule of budgeted income and expenses administered on
behalf of Government (for the period ended 30 June)
$'000
2016–17
Forw ard
estimate
$'000
2017–18
Forw ard
estimate
$'000
2018–19
Forw ard
estimate
$'000
132
132
132
132
132
132
132
132
132
132
132
132
132
132
132
132
132
132
132
132
-
-
-
-
-
Surplus/(deficit)
-
-
-
-
-
Total com prehensive incom e/(loss)
-
-
-
-
-
EXPENSES
Suppliers
Total expenses adm inistered on
behalf of Governm ent
LESS:
OWN-SOURCE INCOME
Ow n-source revenue
Taxation revenue
Other revenue
Total ow n-source revenue
adm inistered on behalf of
Governm ent
Net cost of/(contribution by) services
2014–15
Estimated
actual
$'000
2015–16
Budget
Prepared on Australian Accounting Standards basis.
114
Comcare Budget Statements 2015–16
Table 3.2.8: Schedule of budgeted assets and liabilities administered on
behalf of Government (as at 30 June)
ASSETS
Financial assets
Taxation receivables
Trade and other receivables
Total financial assets
Total assets adm inistered on
behalf of Governm ent
LIABILITIES
Payables
Other payables
Total payables
Total liabilities adm inistered on
behalf of Governm ent
Net assets/(liabilities)
2014–15
Estimated
actual
$'000
2015–16
Budget
$'000
2016–17
Forw ard
estimate
$'000
2017–18
Forw ard
estimate
$'000
2018–19
Forw ard
estimate
$'000
11
1,304
11
1,304
11
1,304
11
1,304
11
1,304
1,315
1,315
1,315
1,315
1,315
1,315
1,315
1,315
1,315
1,315
111
111
111
111
111
111
111
111
111
111
111
1,204
111
1,204
111
1,204
111
1,204
111
1,204
Prepared on Australian Accounting Standards basis.
115
Comcare Budget Statements 2015–16
Table 3.2.9: Schedule of budgeted administered cash flows (for the period
ended 30 June)
2014–15
Estimated
actual
$'000
OPERATING ACTIVITIES
Cash received
Other
2015–16
Budget
$'000
2016–17
Forw ard
estimate
$'000
2017–18
Forw ard
estimate
$'000
2018–19
Forw ard
estimate
$'000
132
132
132
132
132
Total cash received
Cash used
Other
132
132
132
132
132
132
132
132
132
132
Total cash used
Net cash from /(used by)
operating activities
Net increase/(decrease) in cash
held
Cash and cash equivalents at
beginning of reporting period
Cash from Official Public Account for:
- Special accounts
Total cash from Official Public
Cash to Official Public Account for:
- Special accounts
- Transfers to other entities
Total cash to Official Public Account
Cash and cash equivalents at end
of reporting period
132
132
132
132
132
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
132
132
132
132
132
132
132
132
132
132
132
132
132
132
132
132
132
132
132
132
-
-
-
-
-
Prepared on Australian Accounting Standards basis.
Table 3.2.10: Administered capital budget statement (for the period ended
30 June)
Comcare has no administered capital purchases. For this reason Table 3.2.10 is
not presented.
Table 3.2.11: Statement of administered asset movements (Budget year
2015–16)
Comcare has no administered non-financial assets. For this reason Table 3.2.11 is
not presented.
116
Comcare Budget Statements 2015–16
3.2.4 Notes to the financial statements
Accounting policy
The budgeted financial statements have been prepared in accordance with the
requirements of the Finance Minister’s Orders issued by the Minister for
Finance.
The statements have been prepared:
 on an accrual accounting basis
 in compliance with Australian Accounting Standards and Australian
Equivalents to International Financial Reporting Standards (AEIFRS) and
other authoritative pronouncements of the Australian Accounting Standards
Boards and the Consensus Views of the Urgent Issues Group
 having regard to Statements of Accounting Concepts.
Entity items
Entity assets, liabilities, revenues and expenses are those items that are
controlled by Comcare.
Administered assets, liabilities, revenues and expenses relate to the Seafarers’
Safety, Rehabilitation and Compensation Authority (Seafarers Authority) which
collects levies under the Seafarers Rehabilitation and Compensation Levy Collection
Act 1992. The Seafarers Authority is controlled by the Government and managed
by Comcare.
Comprehensive Income Statement
Revenue from government
Comcare receives an annual appropriation for the management of asbestosrelated claims, the administration of the Seacare Authority and some of
Comcare’s regulatory activities.
Own source revenue
Comcare receives the following own-source revenue:
 workers’ compensation premiums
 grants received from portfolio department
 other non-tax revenue
 licence fees
 regulatory contributions
 interest
 sale of goods and rendering of services.
117
Comcare Budget Statements 2015–16
Workers’ compensation premiums
The premium scheme covers employees of Commonwealth Government
agencies and the ACT Government covered by the SRC Act for injuries and
illnesses sustained on or after 1 July 1989. Premiums are determined to fully
fund the expected scheme liabilities as advised by independent actuaries.
Premiums do not cover liabilities for injuries or illness sustained prior to
1 July 1989. These liabilities are funded by Parliamentary appropriation and are
referred to as ‘pre-premium’ liabilities.
Grants received from portfolio department
‘Grants received from portfolio department’ represent cash appropriation for the
payment of pre-premium claims and administration costs, and asbestos claims
costs.
Other non-tax revenue
‘Other non-tax revenue’ is a non-cash appropriation representing:
 the notional interest on retained premium funds held with the Australian
Government
 the movement in claims liabilities payable in future years based on
independent actuarial assessment.
Administration expenses
Comcare administration expenses include:
 employee expenses—includes salaries, superannuation and the net increase
in employee entitlements
 suppliers—includes goods and services procured from suppliers
 depreciation and amortisation—property, plant and equipment and
intangible assets are depreciated over their useful lives. Leasehold
improvements are amortised over the lesser of the estimated useful life of the
improvement or the unexpired period of the lease. In all cases, assets are
depreciated using the straight line method.
Claims expenses
Comcare recognises two types of claims expenses:
1.
Claims payments—includes workers’ compensation claims payments
(premium and pre-premium) and common law settlements for asbestosrelated compensation cases.
2.
Movement in liabilities—net movements in outstanding workers’
compensation claims liabilities are recognised as expenses.
118
Comcare Budget Statements 2015–16
Departmental Balance Sheet
Cash and cash equivalents
Cash and cash equivalents include deposits at call and term deposits with a
bank or financial institution.
Trade and other receivables
Other receivables are the combined value of:
 pre-premium and asbestos special appropriation receivable
 premiums collected by Comcare prior to 1 July 2002 held by the Australian
Government plus earned notional interest, in accordance with Section 90C of
the SRC Act.
Employee provisions
The provision for employee entitlements encompasses unpaid annual and long
service leave. No provision is made for sick leave.
Other provisions
Provision is made for:
 outstanding workers’ compensation claims liabilities
 asbestos-related common law liabilities.
These estimates have been prepared by independent actuaries. They are based
on analysis of the historical development of the relevant claims experience, with
allowances for future claim escalation and administration expenses, and are
discounted to a present value to allow for the time value of money.
The estimates of outstanding liabilities have been based on independent
actuarial valuations on the basis of the central estimate plus the risk margin that
would achieve a 75 per cent probability of sufficiency.
119
Fair Work Commission
Entity resources and planned
performance
FAIR WORK COMMISSION
Section 1: Entity overview and resources .............................................................. 125
1.1
Strategic direction statement ........................................................................ 125
1.2
Entity resource statement ............................................................................. 126
1.3
Budget measures .......................................................................................... 128
Section 2: Outcomes and planned performance.................................................... 129
2.1
Outcomes and performance information ...................................................... 129
Section 3: Explanatory tables and budgeted financial statements ...................... 135
3.1
Explanatory tables......................................................................................... 135
3.2
Budgeted financial statements ...................................................................... 135
123
FWC Budget Statements 2015–16
FAIR WORK COMMISSION
Section 1: Entity overview and resources
1.1
STRATEGIC DIRECTION STATEMENT
The Fair Work Commission was established by the Fair Work Act 2009 (FW Act).
The Commission is the independent national workplace relations tribunal
responsible for administering provisions of the FW Act. The Commission also
has responsibilities in relation to the registration, recognition and accountability
of unions and employer organisations under the Fair Work (Registered
Organisations) Act 2009.
The Road Safety Remuneration Act 2012 established the Road Safety Remuneration
Tribunal; an independent national tribunal with functions relating to the road
transport industry. The Road Safety Remuneration Tribunal is supported by
staff of the Fair Work Commission.
The Fair Work Commission consists of a President, Vice Presidents, Deputy
Presidents, Commissioners and Expert Panel Members. The Fair Work
Commission also has a General Manager and administrative staff.
The Fair Work Commission has the power to make and vary awards, make
minimum wage orders, approve agreements, resolve workplace and other
disputes, determine unfair dismissal claims, deal with applications for orders to
stop or prevent workplace bullying and make orders in relation to matters such
as good faith bargaining and industrial action.
The Fair Work Commission is implementing initiatives aimed at further
improving fairness and access to justice; accountability; innovation and
efficiency; and productivity and engagement with industry. These initiatives are
set out in the publication Future Directions II, which is available on the
Commission’s website (www.fwc.gov.au).
125
FWC Budget Statements 2015–16
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: Fair Work Commission resource statement—Budget estimates
for 2015–16 as at Budget May 2015
Ac tual
Available
Appropriation
2014–15
Proposed at
2015–16
Budget
Total 2015–16
estimate
$'000
$'000
$'000
Estimate of
prior year
amounts
available in
2015–16
$'000
O rdina ry a nnua l se rvic e s 1
De pa rtme nta l a ppropria tion
Prior year appropriations 2
36,693
34,558
-
34,558
Departmental appropriation 3
82,348
-
81,968
81,968
1,286
12 0 , 3 2 7
12 0 , 3 2 7
34,558
34,558
2,429
84,397
84,397
2,429
118 , 9 5 5
118 , 9 5 5
-
-
-
-
12 0 , 3 2 7
34,558
84,397
118 , 9 5 5
4
s74 Retained revenue rec eipts
Tota l
Tota l ordina ry a nnua l se rvic e s [A]
De pa rtme nta l non- ope ra ting
Equity injec tions
Tota l
Tota l othe r se rvic e s [B]
Tota l a va ila ble a nnua l
a ppropria tions [A+ B]
126
FWC Budget Statements 2015–16
Table 1.1: Fair Work Commission resource statement—Budget estimates
for 2015–16 as at Budget May 2015 (continued)
Ac tual
Available
Appropriation
2014–15
$'000
S pe c ia l a ppropria tions
S pe c ia l a ppropria tions limite d by
c rite ria / e ntitle me nt
Public Governanc e, Performanc e
and Ac c ountability Ac t 2013 - s77 5
Tota l spe c ia l a ppropria tions [C]
Tota l a ppropria tions e xc luding
spe c ia l a c c ounts
S pe c ia l a c c ounts
Tota l ne t re sourc ing for Fa ir Work
Commission
1 Appropriation
Proposed at
2015–16
Budget
Total 2015–16
estimate
$'000
$'000
500
-
500
500
500
-
500
500
-
-
-
-
Tota l spe c ia l a c c ounts [D]
Tota l re sourc ing [A+ B+ C+ D]
Less appropriations drawn from
annual or spec ial appropriations
above and c redited to spec ial
ac c ounts and/or payments to
c orporate entities through annual
appropriations
Estimate of
prior year
amounts
available in
2015–16
$'000
-
-
-
-
12 0 , 8 2 7
34,558
84,897
119 , 4 5 5
-
-
-
-
12 0 , 8 2 7
34,558
84,897
119 , 4 5 5
Bill (No.1) 2015-16.
2
Estimated adjusted balance carried forward from previous year.
3
Includes an amount of $2.418 million 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'.
4
Estimated Retained revenue receipts under section 74 of the PGPA Act.
5
Repayments not provided for under other appropriations. Amounts received on or before
30 June 2014 were repaid under section 28 of the Financial Management and Accountability Act 1997.
Reader note: All figures are GST exclusive.
127
FWC Budget Statements 2015–16
1.3
BUDGET MEASURES
Budget measures relating to the Fair Work Commission are detailed in Budget
Paper No. 2 and are summarised below.
Table 1.2: Fair Work Commission 2015–16 Budget measures
Part 2: MYEFO measures not previously reported in a portfolio statement
Programme
2014–15 2015–16 2016–17 2017–18 2018–19
$'000
$'000
$'000
$'000
$'000
Measures
Communications and Public Affairs
Savings
Departmental expenses
1.1
(11)
(21)
(21)
(22)
(22)
Total
Total m easures
Departmental
(11)
(21)
(21)
(22)
(22)
(11)
(21)
(21)
(22)
(22)
Total
(11)
(21)
(21)
(22)
(22)
Prepared on a Government Financial Statistics (fiscal) basis.
128
FWC Budget Statements 2015–16
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 agencies achieve the
intended results of their outcome statements. Agencies 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 Fair Work Commission in achieving government
outcomes.
Outcome 1: Simple, fair and flexible workplace relations for employees and
employers through the exercise of powers to set and vary minimum wages
and modern awards, facilitate collective bargaining, approve agreements
and deal with disputes.
Outcome 1 strategy
The Fair Work Commission has a single planned outcome.
Outcome expenses statement
Table 2.1 provides an overview of the total expenses for Outcome 1 by
programme.
129
FWC Budget Statements 2015–16
Table 2.1 Budgeted expenses for Outcome 1
Outcom e 1: Sim ple, fair and flexible w orkplace relations
for em ployees and em ployers through the exercise of
pow ers to set and vary m inim um w ages and m odern
aw ards, facilitate collective bargaining, approve
agreem ents and deal w ith disputes
Program m e 1.1: Dispute resolution, m inim um w age
setting, orders and approval of agreem ents
Departmental expenses
Departmental appropriation1
Expenses not requiring appropriation in the Budget year 2
Total for program m e 1.1
Outcom e 1 Totals by appropriation type
Departmental expenses
Departmental appropriation1
Expenses not requiring appropriation in the Budget year 2
Total expenses for Outcom e 1
Average staffing level (num ber)
2014–15
Estimated
actual
expenses
$'000
2015–16
Estimated
expenses
81,173
3,576
81,979
4,583
84,749
86,562
81,173
3,576
81,979
4,583
84,749
86,562
2014–15
339
2015–16
336
$'000
1
Departmental appropriation combines 'Ordinary annual services (Appropriation Bill No. 1)' and
'Revenue from independent sources (s 74)'.
2
Expenses not requiring appropriation in the Budget year are made up of depreciation expenses,
amortisation expenses, and audit fees.
Note: Departmental appropriation splits and totals are indicative estimates and may change in the
course of the budget year as government priorities change.
Contributions to Outcome 1
Programme 1.1: Dispute resolution, minimum wage setting, orders and
approval of agreements
Programme objective
To exercise powers under the Fair Work Act 2009:
 in accordance with the objects of the Act
 in a manner that is fair and just; is quick, informal and avoids unnecessary
technicalities; is open and transparent; and promotes harmonious and
cooperative workplace relations.
To exercise powers under the Road Safety Remuneration Act 2012 in accordance
with the objects of the Act.
130
FWC Budget Statements 2015–16
Programme expenses
The functions of the Fair Work Commission and the Road Safety Remuneration
Tribunal are prescribed by legislation. New and/or changed legislative
requirements may impact forward year expenses.
Table 2.1.1 Programme expenses
Annual departmental expenses:
Departmental item
Expenses not requiring appropriation in
the Budget year 1
Total program m e expenses
1
2014–15
Estimated
actual
$'000
2015–16
Budget
2016–17 2017–18 2018–19
Forw ard Forw ard Forw ard
estimate estimate estimate
$'000
$'000
$'000
$'000
81,173
81,979
81,012
81,914
83,165
3,576
4,583
4,584
4,584
4,584
84,749
86,562
85,596
86,498
87,749
Expenses not requiring appropriation in the Budget year are made up of depreciation expenses,
amortisation expenses, and audit fees.
131
FWC Budget Statements 2015–16
Programme 1.1 Deliverables
The deliverables for the Fair Work Commission are:
 dispute resolution
 determining unfair dismissal applications
 minimum wage decisions
 orders relating to industrial action
 processes relating to modern awards
 approval of agreements
 regulation of registered organisations
 dealing with workplace bullying applications.
The deliverables for the Road Safety Remuneration Tribunal are:
 developing an annual work programme
 making road safety remuneration orders
 dispute resolution
 approval of road transport collective agreements
 conducting research into pay and conditions that could affect safety in the
road transport industry.
Table 2.1.1.A Programme 1.1 Deliverables
Deliverables
Dispute resolution, minimum w age
setting, orders and approval of
agreements.
2014–15
Estimated
actual
$'000
2015–16
Budget
81,349
132
$'000
2016–17
Forw ard
estimate
$'000
2017–18
Forw ard
estimate
$'000
2018–19
Forw ard
estimate
$'000
82,076
81,110
82,012
83,263
FWC Budget Statements 2015–16
Programme 1.1 Key performance indicators
The key performance indicators for the Fair Work Commission are:
 Improve or maintain the time elapsed from lodging applications to finalising
conciliations in unfair dismissal applications.
 Annual wage review to be completed to enable an operative date of 1 July.
 Improve or maintain the time taken to list applications relating to industrial
action.
 Improve or maintain the agreement approval time.
 95 per cent of financial reports required to be lodged by registered
organisations under the Fair Work (Registered Organisations) Act 2009 are
assessed for compliance within 40 working days.
The key performance indicators for the Road Safety Remuneration Tribunal are:
 Road safety remuneration orders reviewed within 12 months of expiry of any
preceding order.
 An annual work programme is developed.
 Research developed and submissions obtained or received are published on
the website in a timely manner as appropriate.
133
FWC Budget Statements 2015–16
Table 2.1.1.B Key performance indicators
Key performance indicators
Budget
2016–17
Forward
Estimate
2017–18
Forward
Estimate
2018–19
Forward
Estimate
34 Days
34 Days
34 Days
34 Days
34 Days
Annual wage review to be
completed to enable an
operative date of 1 July
By June
30
By June
30
By June
30
By June
30
By June
30
Improve or maintain the
agreement approval time
32 Days
32 Days
32 Days
32 Days
32 Days
95 per cent of financial
reports required to be
lodged under the Fair Work
(Registered Organisations) Act
2009 are assessed for
compliance within 40
working days
95%/40
days
95%/40
days
95%/40
days
95%/40
days
95%/40
days
Road safety remuneration
orders reviewed within 12
months of expiry of any
preceding order
Within
12
months
Within
12
months
Within
12
months
Within
12
months
Within 12
months
An annual work programme
is developed
Annual
Annual
Annual
Annual
Annual
Research developed and
submissions (subs) obtained
or received are published on
the website in a timely
manner as appropriate
Subs 4
Days
Subs 4
Days
Subs 4
Days
Subs 4
Days
Subs 4
Days
2014–15
2015–16
Revised
Budget
Improve or maintain the
time elapsed from lodging
applications to finalising
conciliations in unfair
dismissal applications
134
FWC Budget Statements 2015–16
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
Table 3.1.1: Movement of administered funds between years
The Fair Work Commission has no administered funds. For this reason
Table 3.1.1 is not presented.
Table 3.1.2: Special accounts
The Fair Work Commission has no special accounts. For this reason Table 3.1.2
is not presented.
Table 3.1.3: Australian Government Indigenous expenditure
The Fair Work Commission has no Australian Government Indigenous
expenditure. For this reason Table 3.1.3 is not presented.
3.2
BUDGETED FINANCIAL STATEMENTS
3.2.1 Differences in agency resourcing and financial statements
The Fair Work Commission has nil difference to report.
3.2.2 Analysis of budgeted financial statements
The Fair Work Commission is budgeting for a deficit equal to the
unappropriated depreciation and amortisation expense in 2015–16 and the three
forward years.
Total revenue is estimated to be $81.97 million in 2015–16, and total expenses to
be $86.6 million including depreciation and amortisation.
Total assets for 2015–16 are estimated to be $68 million dollars. Non-financial
assets reflect the operations of the Commission, being office fit outs, computer
and office equipment, and computer software (included in intangibles). The
Commission is planning asset acquisitions in the 2015–16 year primarily relating
to information technology equipment, software, and minor office
accommodation costs.
135
FWC Budget Statements 2015–16
Total liabilities for 2015–16 are estimated to be $29.9 million. The largest
liabilities are accrued employee entitlements.
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
Total expenses
LESS:
OWN-SOURCE INCOME
Ow n-source revenue
Sale of goods and rendering of services
Total ow n-source revenue
Gains
Other
Total gains
2014–15
Estimated
actual
$'000
2015–16
Budget
$'000
2016–17
Forw ard
estimate
$'000
2017–18
Forw ard
estimate
$'000
2018–19
Forw ard
estimate
$'000
55,067
26,282
3,400
53,037
29,039
4,486
52,392
28,718
4,486
53,213
28,799
4,486
54,247
29,016
4,486
84,749
86,562
85,596
86,498
87,749
1,286
2,429
2,429
2,100
1,800
1,286
2,429
2,429
2,100
1,800
176
97
98
98
98
176
97
98
98
98
1,462
2,526
2,527
2,198
1,898
Net cost of/(contribution by)
services
Revenue from Government
83,287
79,887
84,036
79,550
83,069
78,583
84,300
79,814
85,851
81,365
Surplus/(deficit) attributable to the
Australian Governm ent
Total ow n-source incom e
(3,400)
(4,486)
(4,486)
(4,486)
(4,486)
OTHER COMPREHENSIVE INCOME
Changes in asset revaluation surplus
Total other com prehensive incom e
-
-
-
-
-
-
-
-
-
-
Total com prehensive incom e/(loss)
(3,400)
(4,486)
(4,486)
(4,486)
(4,486)
Total com prehensive incom e/(loss)
attributable to the Australian
Governm ent
(3,400)
(4,486)
(4,486)
(4,486)
(4,486)
Prepared an Australian accounting standards basis.
136
FWC Budget Statements 2015–16
Table 3.2.1 Comprehensive income statement (showing net cost of
services) for the period ended 30 June (continued)
Note: Impact of net cash appropriation arrangements
2014–15
$'000
2015–16
$'000
2016–17
$'000
2017–18
$'000
2018–19
$'000
-
-
-
-
-
3,400
4,486
4,486
4,486
4,486
(3,400)
(4,486)
(4,486)
(4,486)
(4,486)
Total com prehensive incom e/(loss)
excluding depreciation/am ortisation
expenses previously funded
through revenue appropriations.
less depreciation/amortisation
expenses previously funded through
revenue appropriations 1
Total com prehensive incom e/(loss)
- as per the statem ent of
com prehensive incom e
1
From 2010–11, the government introduced net cash appropriation arrangements where Bill 1
revenue appropriations for the depreciation/amortisation expenses of non-corporate
Commonwealth entities (and select corporate Commonwealth entities) were replaced with a
separate capital budget (the Departmental Capital Budget, or DCB) provided through Bill 1 equity
appropriations. For information regarding DCBs, please refer to Table 3.2.5 Departmental Capital
Budget Statement.
137
FWC Budget Statements 2015–16
Table 3.2.2 Budgeted departmental balance sheet (as at 30 June)
2014–15
Estimated
actual
$'000
2015–16
Budget
$'000
2016–17
Forw ard
estimate
$'000
2017–18
Forw ard
estimate
$'000
2018–19
Forw ard
estimate
$'000
433
35,246
433
35,246
433
35,246
433
35,246
433
35,246
Total financial assets
Non-financial assets
Land and buildings
Property, plant and equipment
Intangibles
Other non-financial assets
35,679
35,679
35,679
35,679
35,679
20,303
7,722
1,812
4,588
18,605
6,210
2,954
4,588
17,498
5,072
3,134
4,588
16,388
4,261
3,014
4,588
15,371
3,281
2,994
4,588
Total non-financial assets
Assets held for sale
Total assets
34,425
-
32,357
-
30,292
-
28,251
-
26,234
-
70,104
68,036
65,971
63,930
61,913
1,819
9,122
1,819
9,122
1,819
9,122
1,819
9,122
1,819
9,122
Total payables
Provisions
Employee provisions
Other provisions
10,941
10,941
10,941
10,941
10,941
18,864
96
18,864
96
18,864
96
18,864
96
18,864
96
Total provisions
Liabilities included in disposal groups
held for sale
Total liabilities
18,960
18,960
18,960
18,960
18,960
-
-
-
-
-
29,901
29,901
29,901
29,901
29,901
Net assets
40,203
38,135
36,070
34,029
32,012
EQUITY*
Parent entity interest
Contributed equity
Reserves
Retained surplus (accumulated
deficit)
41,174
-
43,592
-
46,013
-
48,458
-
50,927
-
(971)
(5,457)
(9,943)
(14,429)
(18,915)
Total parent entity interest
40,203
38,135
36,070
34,029
32,012
Total Equity
40,203
38,135
36,070
34,029
32,012
ASSETS
Financial assets
Cash and cash equivalents
Trade and other receivables
LIABILITIES
Payables
Suppliers
Other payables
*Equity is the residual interest in assets after the deduction of liabilities.
Prepared on an Australian accounting standards basis.
138
FWC Budget Statements 2015–16
Table 3.2.3 Budgeted statement of changes in equity—summary of
movement (Budget Year 2015–16)
Retained
Asset
Other Contributed
earnings revaluation reserves
equity/
reserve
capital
$'000
$'000
$'000
$'000
Opening balance as at 1 July 2015
Balance carried forw ard from previous
period
Adjusted opening balance
Com prehensive incom e
Surplus/(deficit) for the period
Total comprehensive income
of w hich:
Attributable to the Australian Government
Transactions w ith ow ners
Contributions by ow ners
Departmental Capital Budget (DCB)
Sub-total transactions w ith ow ners
Transfers betw een equity components
Estim ated closing balance as at
30 June 2016
(971)
Total
equity
$'000
-
-
41,174
40,203
(971)
41,174
40,203
(4,486)
(4,486)
-
-
-
(4,486)
(4,486)
(4,486)
-
-
-
(4,486)
-
-
-
2,418
2,418
-
2,418
2,418
-
(5,457)
-
-
43,592
38,135
Prepared on Australian accounting standards basis.
139
FWC Budget Statements 2015–16
Table 3.2.4 Budgeted departmental statement of cash flows (for the period
ended 30 June)
OPERATING ACTIVITIES
Cash received
Appropriations
Other
Total cash received
Cash used
Employees
Suppliers
Total cash used
Net cash from /(used by)
operating activities
INVESTING ACTIVITIES
Cash received
Other
Total cash received
Cash used
Purchase of property, plant and
equipment
Total cash used
Net cash from /(used by)
investing activities
FINANCING ACTIVITIES
Cash received
Contributed equity
Total cash received
Cash used
Other
Total cash used
Net cash from /(used by)
financing activities
Net increase/(decrease) in cash
held
Cash and cash equivalents at the
beginning of the reporting period
Cash and cash equivalents at the
end of the reporting period
$'000
2016–17
Forw ard
estimate
$'000
2017–18
Forw ard
estimate
$'000
2018–19
Forw ard
estimate
$'000
79,774
1,286
81,060
79,550
2,429
81,979
78,583
2,429
81,012
79,814
2,100
81,914
81,365
1,800
83,165
55,067
26,103
81,170
53,037
28,942
81,979
52,392
28,620
81,012
53,213
28,701
81,914
54,247
28,918
83,165
(110)
-
-
-
-
-
-
-
-
-
2,340
2,340
2,418
2,418
2,421
2,421
2,445
2,445
2,469
2,469
(2,340)
(2,418)
(2,421)
(2,445)
(2,469)
2,450
2,450
2,418
2,418
2,421
2,421
2,445
2,445
2,469
2,469
-
-
-
-
-
2,450
2,418
2,421
2,445
2,469
-
-
-
-
-
433
433
433
433
433
433
433
433
433
433
2014–15
Estimated
actual
$'000
2015–16
Budget
Prepared on Australian accounting standards basis.
140
FWC Budget Statements 2015–16
Table 3.2.5 Departmental capital budget statement (for the period ended
30 June)
$'000
2016–17
Forw ard
estimate
$'000
2017–18
Forw ard
estimate
$'000
2018–19
Forw ard
estimate
$'000
2,450
-
2,418
-
2,421
-
2,445
-
2,469
-
Total new capital appropriations
Provided for:
Purchase of non-financial assets
2,450
2,418
2,421
2,445
2,469
2,450
2,418
2,421
2,445
2,469
Total Items
PURCHASE OF NON-FINANCIAL
ASSETS
2,450
2,418
2,421
2,445
2,469
-
-
-
-
-
2,340
2,418
2,421
2,445
2,469
NEW CAPITAL APPROPRIATIONS
Capital budget - Bill 1 (DCB)
Equity injections - Bill 2
Funded by capital appropriations 1
Funded by capital appropriation DCB2
Funded internally from departmental
resources 3
2014–15
Estimated
actual
$'000
2015–16
Budget
-
-
-
-
-
TOTAL
RECONCILIATION OF CASH USED TO
ACQUIRE ASSETS TO ASSET
MOVEMENT TABLE
Total purchases
2,340
2,418
2,421
2,445
2,469
2,340
2,418
2,421
2,445
2,469
Total cash used to acquire assets
2,340
2,418
2,421
2,445
2,469
1
Includes both current Bill 2 and prior Act 2/4/6 appropriations and special capital appropriations.
2
Does not include annual finance lease costs. Include purchases from current and previous years'
Departmental Capital Budgets (DCBs).
3
Includes the following sources of funding:
- current Bill 1 and prior year Act 1/3/5 appropriations (excluding amounts from the DCB)
- donations and contributions
- gifts
- internally developed assets
- s 74 Retained revenue receipts
- proceeds from the sale of assets.
Prepared on Australian accounting standards basis.
141
FWC Budget Statements 2015–16
Table 3.2.6 Statement of asset movements (2015–16)
Other property,
plant and
equipment
$'000
Computer
software and
intangibles
$'000
$'000
26,221
10,549
4,068
40,838
(5,918)
20,303
(2,827)
7,722
(2,256)
1, 8 12
(11,001)
29,837
Buildings
$'000
As a t 1 July 2 0 15
Gross
book value
Ac c umulated
deprec iation/amortisation and
impairment
O pe ning ne t book ba la nc e
Ca pita l a sse t a dditions
Estima te d e xpe nditure on ne w
or re pla c e me nt a sse ts
1
By purc hase - appropriation equity
Tota l a dditions
O the r move me nts
Deprec iation/amortisation expense
Total
178
778
1,462
2,418
17 8
778
1, 4 6 2
2 , 4 18
(1,876)
(2,290)
(320)
(4,486)
Tota l othe r move me nts
As a t 3 0 June 2 0 16
Gross book value
Ac c umulated
deprec iation/amortisation and
impairment
(1, 8 7 6 )
(2 , 2 9 0 )
(3 2 0 )
(4 , 4 8 6 )
26,399
11,327
5,530
43,256
(5,117)
(2,576)
Closing ne t book ba la nc e
18 , 6 0 5
6 , 2 10
2,954
1
(7,794)
(15,487)
27,769
"Appropriation equity" refers to equity injections appropriations provided through Appropriation
Bill (No. 2) 2015-16, including CDABs.
Prepared on Australian accounting standards basis.
142
FWC Budget Statements 2015–16
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
EXPENSES
Other expenses
Total expenses adm inistered on
behalf of Governm ent
LESS:
OWN-SOURCE INCOME
Non-taxation revenue
Other revenue
Total non-taxation revenue
Total ow n-source revenue
adm inistered on behalf of
Governm ent
Total ow n-sourced incom e
adm inistered on behalf of
Governm ent
Net cost of/(contribution by) services
$'000
2016–17
Forw ard
estimate
$'000
2017–18
Forw ard
estimate
$'000
2018–19
Forw ard
estimate
$'000
-
-
-
-
-
-
-
-
-
-
578
578
578
578
578
578
578
578
578
578
578
578
578
578
578
578
578
578
578
578
(578)
(578)
(578)
(578)
(578)
578
-
578
-
578
-
578
-
578
-
578
578
578
578
578
Changes in asset revaluation surplus
Total other com prehensive incom e
-
-
-
-
-
-
-
-
-
-
Total com prehensive incom e/(loss)
578
578
578
578
578
Surplus/(deficit) before incom e tax
Income tax expense
Surplus/(Deficit) after incom e tax
OTHER COMPREHENSIVE INCOME
Item s not subject of subsequent
reclassification to net cost of services
Prepared on Australian accounting standards basis.
Table 3.2.8 Schedule of budgeted assets and liabilities administered on
behalf of Government (as at 30 June)
The Fair Work Commission has no administered assets and liabilities. For this
reason Table 3.2.8 is not presented.
143
FWC Budget Statements 2015–16
Table 3.2.9 Schedule of budgeted administered cash flows (for the period
ended 30 June)
2014–15
Estimated
actual
$'000
OPERATING ACTIVITIES
Cash received
Other
Total cash received
Cash used
Other
Total cash used
Net cash from /(used by)
operating activities
INVESTING ACTIVITIES
Cash received
Other
2015–16
Budget
$'000
2016–17
Forw ard
estimate
$'000
2017–18
Forw ard
estimate
$'000
2018–19
Forw ard
estimate
$'000
578
578
578
578
578
578
578
578
578
578
-
-
-
-
-
-
-
-
-
-
578
578
578
578
578
-
-
-
-
-
Total cash received
Cash used
Other
-
-
-
-
-
-
-
-
-
-
Total cash used
Net cash from /(used by)
investing activities
FINANCING ACTIVITIES
Cash received
Other
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Total cash received
Cash used
Other
-
-
-
-
-
-
-
-
-
-
Total cash used
Net cash from /(used by)
financing activities
Net increase/(decrease) in cash
held
Cash to Official Public Account for:
- Other
Cash and cash equivalents at end
of reporting period
-
-
-
-
-
-
-
-
-
-
578
578
578
578
578
(578)
(578)
(578)
(578)
(578)
-
-
-
-
-
Prepared on Australian accounting standards basis.
144
FWC Budget Statements 2015–16
Table 3.2.10 Schedule of administered capital budget statement (for the
period ended 30 June)
The Fair Work Commission has no administered capital budget. For this reason
Table 3.2.10 is not presented.
Table 3.2.11 Statement of administered asset movements (Budget year
2015–16)
The Fair Work Commission has no administered assets and liabilities. For this
reason Table 3.2.11 is not presented.
145
FWC Budget Statements 2015–16
3.2.4 Notes to the financial statements
Accounting Policy
The budgeted financial statements have been prepared in accordance with the
requirements of the Finance Minister’s Orders issued by the Minister for
Finance.
The statements have been prepared:
•
on an accrual accounting basis
•
in compliance with Australian Accounting Standards and Australian
Equivalents to International Financial Reporting Standards (AEIFRS) and
other authoritative pronouncements of the Australian Accounting Standards
Board and the Consensus Views of the Urgent Issues Group.
Departmental Revenue from Government
Revenue from government represents the purchase of outputs from the Fair
Work Commission by the government. The changes reflected in the ordinary
annual appropriations are a result of those new measures and variations that are
explained in Section 1: Agency overview and resources, variations and
measures.
Departmental Revenue from Other Sources
Revenue from the sale of goods and services will be recognised upon the
delivery of the goods or services to customers.
Departmental Expenses – Employees
This item will represent payments made and net increases or decreases in
entitlements owed to employees for their services provided in the financial year.
Departmental Expenses – Suppliers
This item will represent payments to suppliers for goods and services.
Departmental Expenses – Depreciation and Amortisation
Property, plant and equipment assets are written-off to their estimated residual
values over their estimated useful using, in all cases, the straight-line method of
depreciation.
Property plant and equipment assets will be depreciated over their useful lives
between three and ten years. Leasehold improvements will be amortised on a
146
FWC Budget Statements 2015–16
straight-line basis over the lesser of the estimated useful life of the
improvements or the unexpired period of the lease.
Departmental Assets – Financial Assets – Receivables
Receivables represent amounts which will be owing to the Fair Work
Commission for goods and services it has provided to external parties and cash
reserves held in the Official Public Account.
Departmental Assets – Non-Financial Assets
These items represent future economic benefits that the Fair Work Commission
will consume in producing outputs. Apart from re-valued assets, the reported
value represents the purchase price paid, less depreciation incurred to date in
using that asset from the transferring agencies.
Land and Buildings, and Infrastructure, Plant and Equipment will initially be
brought to account at cost, except for purchases costing less than $10,000 for
leasehold improvements and $2000 for all other classes, which will be expensed
in the year of acquisition (other than where they form part of the group of
similar items which are significant in total).
Computer software, disclosed in the Balance Sheet as Intangibles, will be
expensed in the year of acquisition except for purchases or internally developed
software costing more than $2000 which are capitalised at cost.
The Fair Work Commission will annually reassess and adjust the values of Land
and Buildings (leasehold improvements), Infrastructure, Plant and Equipment.
Departmental Liabilities – Provisions – Employees
Provision will be made for the Fair Work Commissions liability for employee
entitlements arising from services rendered by the Fair Work Commission,
Members and employees to balance date. This liability will encompass unpaid
wages and salaries, annual and long service leave and Judges’ long leave. No
provision will be made for sick leave.
The liability for leave expected to be settled within 12 months is to be measured
at the nominal amount.
Other employee entitlements payable later than one year will be estimated at the
present value of the expected future cash outflows in relation to those
entitlements. Attrition rates and pay rises through promotion and wage/salary
agreements will be been taken into account.
147
Fair Work Ombudsman
Entity resources and planned
performance
FAIR WORK OMBUDSMAN
Section 1: Entity overview and resources .............................................................. 153
1.1
Strategic direction statement ........................................................................ 153
1.2
Entity resource statement ............................................................................. 154
1.3
Budget measures .......................................................................................... 156
Section 2: Outcomes and planned performance.................................................... 157
2.1
Outcomes and performance information ...................................................... 157
Section 3: Explanatory tables and budgeted financial statements ...................... 162
3.1
Explanatory tables......................................................................................... 162
3.2
Budgeted financial statements ...................................................................... 163
151
FWO Budget Statements 2015–16
FAIR WORK OMBUDSMAN
Section 1: Entity overview and resources
1.1
STRATEGIC DIRECTION STATEMENT
The Fair Work Ombudsman is an independent statutory office created by the
Fair Work Act 2009 on 1 July 2009.
The Fair Work Ombudsman promotes harmonious, productive and cooperative
workplace relations and ensures compliance with Commonwealth workplace
laws by:
 offering people a single point of contact for them to receive accurate and
timely advice and information about Australia’s workplace relations system
 educating people working in Australia about their workplace rights and
obligations
 investigating complaints or suspected contraventions of workplace laws,
awards and agreements
 using both informal and formal compliance tools, including litigation when
necessary, to enforce workplace laws and to deter people from not
complying with their workplace responsibilities.
The strategic focus of the Fair Work Ombudsman in 2015–16 is to ensure that
there is increased compliance with Commonwealth workplace laws through
educating and advising employees, employers, outworkers, outworker entities
and organisations about the federal workplace relations system.
153
FWO Budget Statements 2015–16
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: Agency resource statement — Budget estimates for 2015–16 as
at Budget May 2015
Proposed at
2015–16
Budget
Total 2015–16
estimate
$'000
Estimate of
prior year
amounts
available in
2015–16
$'000
$'000
$'000
Ac tual
Available
Appropriation
2014–15
1
O rdina ry a nnua l se rvic e s
De pa rtme nta l a ppropria tion
2
Prior year appropriations
Departmental appropriation 3
s74 Retained revenue rec eipts 4
Tota l
79,653
115,516
1,300
66,129
-
117,897
800
66,129
117,897
800
19 6 , 4 6 9
6 6 , 12 9
118 , 6 9 7
18 4 , 8 2 6
Tota l ordina ry a nnua l se rvic e s [A]
19 6 , 4 6 9
6 6 , 12 9
118 , 6 9 7
18 4 , 8 2 6
O the r se rvic e s 5
-
-
-
-
Tota l
-
-
-
-
Tota l othe r se rvic e s [B]
-
-
-
-
19 6 , 4 6 9
6 6 , 12 9
118 , 6 9 7
18 7 , 2 2 6
Tota l a va ila ble a nnua l
a ppropria tions [A+ B]
S pe c ia l a ppropria tions
S pe c ia l a ppropria tions limite d by
c rite ria / e ntitle me nt
Fair Work Ac t 2009
Tota l spe c ia l a ppropria tions [C]
Tota l a ppropria tions e xc luding
spe c ia l a c c ounts
500
-
225
225
500
-
225
225
19 6 , 9 6 9
6 6 , 12 9
118 , 9 2 2
18 7 , 4 5 1
154
FWO Budget Statements 2015–16
Table 1.1: Agency resource statement — Budget estimates for 2015–16 as
at Budget May 2015 (continued)
Ac tual
Available
Appropriation
2014–15
$'000
Estimate of
prior year
amounts
available in
2015–16
$'000
Proposed at
2015–16
Budget
Total 2015–16
estimate
$'000
$'000
S pe c ia l a c c ounts
-
-
-
Tota l spe c ia l a c c ounts [D]
-
-
-
19 6 , 9 6 9
6 6 , 12 9
118 , 9 2 2
18 7 , 4 5 1
-
-
-
-
19 6 , 9 6 9
6 6 , 12 9
118 , 9 2 2
18 7 , 4 5 1
Tota l re sourc ing [A+ B+ C+ D]
Less appropriations drawn from
annual or spec ial appropriations
above and c redited to spec ial
ac c ounts
Tota l ne t re sourc ing for a ge nc y
Fa ir Work O mbudsma n
-
1
Appropriation Bill (No.1) 2015–16.
2
Estimated adjusted balance carried forward from previous year.
3
Includes an amount of $9.811 million 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'.
4
Estimated Retained revenue receipts under section 74 of the PGPA Act.
5
Appropriation Bill (No.2) 2015–16.
Reader note: All figures are GST exclusive.
155
FWO Budget Statements 2015–16
1.3
BUDGET MEASURES
Budget measures relating to the Fair Work Ombudsman are detailed in Budget
Paper No. 2 and are summarised below.
Table 1.2: Agency 2015–16 Budget measures
Part 2: MYEFO measures not previously reported in a portfolio statement
Programme 2014–15 2015–16 2016–17 2017–18 2018–19
$'000
$'000
$'000
$'000
$'000
Measures
Communications and Public Affairs
Savings
Departmental expenses
Total
Expense m easures
Departmental
Total
1.1
(75)
(75)
(150)
(150)
(149)
(149)
(151)
(151)
(151)
(151)
(75)
(75)
(150)
(150)
(149)
(149)
(151)
(151)
(151)
(151)
Prepared on a Government Financial Statistics (fiscal) basis.
156
FWO Budget Statements 2015–16
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 agencies achieve the
intended results of their outcome statements. Agencies 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 Fair Work Ombudsman in achieving government
outcomes.
Outcome 1: Compliance with workplace relations legislation by employees
and employers through advice, education and where necessary
enforcement.
Outcome 1 Strategy
The workplace rights and obligations of employees, employers, outworkers,
outworker entities and organisations are protected and enforced through a mix
of targeted compliance and education activities, investigation of breaches of
workplace laws with a focus on voluntary compliance and, where necessary,
litigation in the courts as a means of both general and specific deterrence.
The Fair Work Ombudsman provides a single national point of contact for
accurate advice on the federal workplace relations system.
The Fair Work Ombudsman provides advice and information on workplace
relations matters through the Fair Work Infoline. Fair Work Ombudsman
advisors are located in contact centres in a number of states and provide advice
on a range of matters including wage rates and conditions of employment.
As part of its ongoing educative role, the agency undertakes education and
compliance campaigns and provides information services and best practice
guides. The educational and compliance campaigns are run at national, state
and local levels and target particular industries or geographical locations.
The Fair Work Ombudsman has appointed a number of staff as Fair Work
Inspectors. These officers are located in all states and territories and investigate
complaints received regarding alleged instances of non-compliance with federal
workplace relations laws. In the majority of instances compliance with
workplace relations laws are achieved voluntarily and are assisted by targeted
and industry specific auditing activities. Litigation activities are used when and
157
FWO Budget Statements 2015–16
as required, particularly in cases where breaches have significant consequences,
when they affect a vulnerable group or when a person does not acknowledge
that the problem requires rectification.
The Fair Work Ombudsman makes public statements about its enforcement
activities to educate and ensure it has the trust of the Australian community and
to promote the general deterrence of those enforcement activities.
158
FWO Budget Statements 2015–16
Outcome 1 Budgeted Expenses and Resources
Table 2.1 provides an overview of the total expenses for Outcome 1, by
programme.
Table 2.1: Budgeted Expenses and Resources for Outcome 1
Outcom e 1: Com pliance w ith w orkplace relations
legislation by em ployees and em ployers through
advice, education and w here necessary enforcem ent.
Program m e 1.1: Education Services and Com pliance
Activities
Administered expenses
Special appropriations
Departmental expenses
Departmental appropriation1
Expenses not requiring appropriation in the Budget year 2
Total for program m e 1.1
Outcom e 1 Totals by appropriation type
Administered expenses
Special appropriations
Departmental expenses
Departmental appropriation1
Expenses not requiring appropriation in the Budget year 2
Total expenses for Outcom e 1
Average staffing level (num ber)
2014–15
Estimated
actual
expenses
$'000
2015–16
Estimated
expenses
500
225
115,834
10,333
111,286
10,701
126,667
122,212
500
225
115,834
10,333
111,286
10,701
126,667
122,212
2014–15
710
2015–16
685
$'000
1
Departmental appropriation combines 'Ordinary annual services (Appropriation Bill No. 1)' and
'Revenue from independent sources (s 74)'.
2
Expenses not requiring appropriation in the Budget year are made up of depreciation expenses,
amortisation expenses, and audit fees.
Note: Departmental appropriation splits and totals are indicative estimates and may change in the
course of the budget year as government priorities change.
159
FWO Budget Statements 2015–16
Contributions to Outcome 1
Programme 1.1: Education Services and Compliance Activities
Programme objective
To educate employers, employees, organisations and contractors about the
workplace relations system and to ensure compliance with workplace laws.
Table 2.1.1 Programme expenses
Special appropriations:
Fair Work Act 2009
Annual departmental expenses:
Departmental items
Expenses not requring appropriation in the
Budget year 1
Total program m e expenses
1
2014–15
Estimated
actual
$'000
2015–16
Budget
$'000
2016–17
Forw ard
estimate
$'000
2017–18 2018–19
Forw ard Forw ard
estimate estimate
$'000
$'000
500
225
250
275
250
115,834
111,286
107,084
107,137
107,694
10,333
10,701
7,102
8,069
7,982
126,667
122,212
114,436
115,481
115,926
Expenses not requiring appropriation in the Budget year are made up of depreciation expenses,
amortisation expenses, and audit fees.
Programme 1.1 Deliverables
The deliverables of the Fair Work Ombudsman are to:
 provide information, advice and education on the requirements and
flexibilities of workplace laws to foster voluntary compliance
 investigate claims regarding alleged breaches of workplace laws and
undertake targeted activities
 litigate, where necessary, to enforce compliance with workplace laws.
Table 2.1.1.A Programme 1.1 Deliverables
Deliverables
Education, investigation, provision of
advice and information services
2014–15
Estimated
actual
$'000
2015–16
Budget
126,167
121,987
160
$'000
2016–17
Forw ard
estimate
$'000
2017–18
Forw ard
estimate
$'000
2018–19
Forw ard
estimate
$'000
114,186
115,206
115,676
FWO Budget Statements 2015–16
Programme 1.1 Key performance indicators
The key performance indicators for the Fair Work Ombudsman are outlined in
the following table and cover the key activities of education, advice and
information services and investigations.
Table 2.1.1.B Programme 1.1 Key performance indicators
Key performance indicator
2015–16
Budget
2016–17
Forward
Estimate
2017–18
Forward
Estimate
2018–19
Forward
Estimate
4
4
4
4
4
2
2
2
2
2
Investigations into complaints
about breaches of federal
agreements or awards
completed within 90 days
(percentage of total
complaints)
80
80
80
80
80
Calls to the Contact Centre
resolved at the first point of
contact (percentage of total
calls)
80
80
80
80
80
Availability of Contact Centre
services (percentage of
availability during advertised
hours)
99
99
99
99
99
Availability of Website (time
available as a percentage of
total time)
99
99
99
99
99
2014–15
Revised
Budget
Number of targeted
campaigns:
National
-
State (number of
campaigns in each
state/territory)
161
FWO Budget Statements 2015–16
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
The Fair Work Ombudsman has no administered funds appropriations. For this
reason Table 3.1.1 is not presented.
3.1.2 Special Accounts
The Fair Work Ombudsman has no Special Accounts. For this reason Table 3.1.2
is not presented.
3.1.3 Australian Government Indigenous expenditure
The Fair Work Ombudsman has no Australian Government Indigenous
expenditure. For this reason Table 3.1.3 is not presented.
162
FWO Budget Statements 2015–16
3.2
BUDGETED FINANCIAL STATEMENTS
3.2.1 Differences in agency resourcing and financial statements
The Agency Resource Statement (Table 1.1) details the total appropriation
available to an agency from all sources. For departmental operating
appropriations (outputs) this includes carry-forward amounts as well as
amounts appropriated at Budget. As agencies incur and are funded for future
liabilities and employee entitlements, the total amount of departmental
operating appropriation available to an agency is unlikely to be fully utilised in
the Budget year. The difference between the agency resource statement and the
sum of all payments made at the departmental outputs level is the expected
carry-forward amount of resources for the 2014–15 Budget year, including
amounts related to meeting future employee entitlement obligations.
3.2.2 Analysis of budgeted financial statements
The Fair Work Ombudsman is budgeting for an operating loss equal to the
unappropriated depreciation and amortisation expense of $10.6 million for the
2015–16 financial year.
Total revenues are estimated to be $111.2 million and total expenses
$122.0 million.
Total assets at the end of the 2015–16 financial year are estimated to be
$95.8 million. The majority of the assets represent receivables (appropriations
receivable) and property fit outs. Asset acquisitions are planned in Information
Technology equipment and systems and on office accommodation fit outs.
Total liabilities for 2015–16 are estimated at $36.1 million. The largest liability
item is accrued employee entitlements.
163
FWO Budget Statements 2015–16
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
Total expenses
LESS:
OWN-SOURCE INCOME
Ow n-source revenue
Sale of goods and rendering of services
Other
Total ow n-source revenue
Gains
Other
Total gains
Total ow n-source incom e
Net cost of/(contribution by)
services
Revenue from Government
Surplus/(deficit) attributable to the
Australian Governm ent
OTHER COMPREHENSIVE INCOME
Total other com prehensive incom e
2014–15
Estimated
actual
$'000
2015–16
Budget
$'000
2016–17
Forw ard
estimate
$'000
2017–18
Forw ard
estimate
$'000
2018–19
Forw ard
estimate
$'000
74,684
41,250
10,233
72,904
38,482
10,601
71,599
35,585
7,002
72,000
35,237
7,969
71,564
36,230
7,882
126,167
121,987
114,186
115,206
115,676
4,350
300
2,900
300
1,050
300
690
300
500
300
4,650
3,200
1,350
990
800
100
100
100
100
100
100
100
100
100
100
4,750
3,300
1,450
1,090
900
121,417
111,184
118,687
108,086
112,736
105,734
114,116
106,147
114,776
106,894
(10,233)
(10,601)
(7,002)
(7,969)
(7,882)
-
-
-
-
-
Total com prehensive incom e/(loss)
(10,233)
(10,601)
(7,002)
(7,969)
(7,882)
Total com prehensive incom e/(loss)
attributable to the Australian
Governm ent
(10,233)
(10,601)
(7,002)
(7,969)
(7,882)
164
FWO Budget Statements 2015–16
Table 3.2.1: Comprehensive income statement (showing net cost of
services) for the period ended 30 June (continued)
Note: Impact of net cash appropriation arrangements
Total com prehensive incom e/(loss)
excluding depreciation/am ortisation
expenses previously funded
through revenue appropriations.
less depreciation/amortisation
expenses previously funded through
revenue appropriations 1
Total com prehensive incom e/(loss)
- as per the statem ent of
com prehensive incom e
1
2014–15
$'000
2015–16
$'000
2016–17
$'000
2017–18
$'000
2018–19
$'000
-
-
-
-
-
10,233
10,601
7,002
7,969
7,882
(10,233)
(10,601)
(7,002)
(7,969)
(7,882)
From 2010–11, the government introduced net cash appropriation arrangements where Bill 1
revenue appropriations for the depreciation/amortisation expenses of non-corporate
Commonwealth entities (and select corporate Commonwealth entities) were replaced with a
separate capital budget (the Departmental Capital Budget, or DCB) provided through Bill 1 equity
appropriations. For information regarding DCBs, please refer to Table 3.2.5 Departmental Capital
Budget Statement.
Prepared on Australian Accounting Standards basis.
165
FWO Budget Statements 2015–16
Table 3.2.2: Budgeted departmental balance sheet (as at 30 June)
$'000
2016–17
Forw ard
estimate
$'000
2017–18
Forw ard
estimate
$'000
2018–19
Forw ard
estimate
$'000
3,160
66,920
3,160
63,975
3,160
64,190
3,160
64,265
3,160
63,844
Total financial assets
Non-financial assets
Land and buildings
Property, plant and equipment
Intangibles
Other non-financial assets
70,080
67,135
67,350
67,425
67,004
13,612
3,788
11,138
1,452
12,486
3,160
11,611
1,452
13,913
2,491
10,222
1,452
12,857
2,019
8,702
1,452
13,331
2,494
6,720
1,452
Total non-financial assets
Assets held for sale
Total assets
29,990
-
28,709
-
28,078
-
25,030
-
23,997
-
100,070
95,844
95,428
92,455
91,001
ASSETS
Financial assets
Cash and cash equivalents
Trade and other receivables
LIABILITIES
Payables
Suppliers
2014–15
Estimated
actual
$'000
2015–16
Budget
11,164
10,370
11,369
10,844
10,844
Total payables
Provisions
Employee provisions
Other provisions
11,164
10,370
11,369
10,844
10,844
20,075
8,261
19,725
5,969
19,450
4,969
19,575
4,969
19,575
4,969
Total provisions
28,336
25,694
24,419
24,544
24,544
Total liabilities
39,500
36,064
35,788
35,388
35,388
Net assets
60,570
59,780
59,640
57,067
55,613
166
FWO Budget Statements 2015–16
Table 3.2.2: Budgeted departmental balance sheet (as at 30 June)
(continued)
EQUITY*
Parent entity interest
Contributed equity
Reserves
Retained surplus (accumulated
deficit)
2014–15
Estimated
actual
$'000
2015–16
Budget
$'000
2016–17
Forw ard
estimate
$'000
2017–18
Forw ard
estimate
$'000
2018–19
Forw ard
estimate
$'000
92,562
5,776
102,373
5,776
109,235
5,776
114,631
5,776
121,059
5,776
(37,768)
(48,369)
(55,371)
(63,340)
(71,222)
Total parent entity interest
60,570
59,780
59,640
57,067
55,613
Total Equity
60,570
59,780
59,640
57,067
55,613
* 'Equity' is the residual interest in assets after deduction of liabilities.
Prepared on Australian Accounting Standards basis.
167
FWO Budget Statements 2015–16
Table 3.2.3: Departmental statement of changes in equity — summary of
movement (Budget year 2015–16)
Retained
Asset
Other Contributed
earnings revaluation reserves
equity/
reserve
capital
$'000
$'000
$'000
$'000
Opening balance as at 1 July 2015
Balance carried forw ard from previous
period
Total
equity
$'000
(37,768)
5,776
-
92,562
60,570
Adjusted opening balance
Com prehensive incom e
Surplus/(deficit) for the period
(37,768)
5,776
-
92,562
60,570
(10,601)
-
-
-
(10,601)
Total comprehensive income
Transactions w ith ow ners
Contributions by owners
Equity Injection - Appropriation
Departmental Capital Budget (DCB)
Sub-total transactions with owners
Estim ated closing balance as at 30
June 2016
(10,601)
-
-
-
(10,601)
-
-
-
9,811
9,811
-
-
-
9,811
9,811
5,776
-
102,373
59,780
(48,369)
Prepared on Australian Accounting Standards basis.
168
FWO Budget Statements 2015–16
Table 3.2.4: Budgeted departmental statement of cash flows (for the period
ended 30 June)
$'000
2016–17
Forw ard
estimate
$'000
2017–18
Forw ard
estimate
$'000
2018–19
Forw ard
estimate
$'000
124,708
111,031
105,519
106,072
107,315
4,350
300
2,900
300
1,050
300
690
300
500
300
Total cash received
Cash used
Employees
Suppliers
Other
129,358
114,231
106,869
107,062
108,115
75,322
43,069
2,000
73,254
39,468
2,000
71,874
34,486
1,000
71,875
35,662
-
71,564
36,130
-
Total cash used
Net cash from /(used by)
operating activities
INVESTING ACTIVITIES
Cash received
Other
120,391
114,722
107,360
107,537
107,694
8,967
(491)
(491)
(475)
421
OPERATING ACTIVITIES
Cash received
Appropriations
Sale of goods and rendering of
services
Other
Total cash received
Cash used
Purchase of property, plant and
equipment
Total cash used
Net cash from /(used by)
investing activities
2014–15
Estimated
actual
$'000
2015–16
Budget
-
-
-
-
-
-
-
-
-
-
13,299
9,320
6,371
4,921
6,849
13,299
9,320
6,371
4,921
6,849
(13,299)
(9,320)
(6,371)
(4,921)
(6,849)
169
FWO Budget Statements 2015–16
Table 3.2.4: Budgeted departmental statement of cash flows (for the period
ended 30 June) (continued)
2014–15
Estimated
actual
$'000
FINANCING ACTIVITIES
Cash received
Contributed equity
Total cash received
Cash used
Other
Total cash used
Net cash from /(used by)
financing activities
Net increase/(decrease) in cash
held
Cash and cash equivalents at the
beginning of the reporting period
Cash and cash equivalents at
the end of the reporting period
2015–16
Budget
$'000
2016–17
Forw ard
estimate
$'000
2017–18
Forw ard
estimate
$'000
2018–19
Forw ard
estimate
$'000
4,332
9,811
6,862
5,396
6,428
4,332
9,811
6,862
5,396
6,428
-
-
-
-
-
-
-
-
-
-
4,332
9,811
6,862
5,396
6,428
-
-
-
-
-
3,160
3,160
3,160
3,160
3,160
3,160
3,160
3,160
3,160
3,160
Prepared on Australian Accounting Standards basis.
170
FWO Budget Statements 2015–16
Table 3.2.5: Departmental capital budget statement (for the period ended
30 June)
NEW CAPITAL APPROPRIATIONS
Capital budget - Bill 1 (DCB)
Total new capital appropriations
Provided for:
Purchase of non-financial assets
Total Items
PURCHASE OF NON-FINANCIAL
ASSETS
Funded by capital appropriation DCB1
Funded internally from departmental
resources 2
TOTAL
RECONCILIATION OF CASH USED TO
ACQUIRE ASSETS TO ASSET
MOVEMENT TABLE
Total purchases
Total cash used to acquire assets
2014–15
Estimated
actual
$'000
2015–16
Budget
$'000
2016–17
Forw ard
estimate
$'000
2017–18
Forw ard
estimate
$'000
2018–19
Forw ard
estimate
$'000
4,332
9,811
6,862
5,396
6,428
4,332
9,811
6,862
5,396
6,428
4,332
9,811
6,862
5,396
6,428
4,332
9,811
6,862
5,396
6,428
11,299
4,320
4,371
4,921
5,849
2,000
5,000
2,000
-
1,000
13,299
9,320
6,371
4,921
6,849
13,299
9,320
6,371
4,921
6,849
13,299
9,320
6,371
4,921
6,849
1
Does not include annual finance lease costs. Include purchases from current and previous years'
Departmental Capital Budgets (DCBs).
2
Includes the following sources of funding:
- current Bill 1 and prior year Act 1/3/5 appropriations (excluding amounts from the DCB)
- donations and contributions
- gifts
- internally developed assets
- s 74 Retained revenue receipts
- proceeds from the sale of assets.
Prepared on Australian Accounting Standards basis.
171
FWO Budget Statements 2015–16
Table 3.2.6: Statement of asset movements (Budget year 2015–16)
Buildings
$'000
As a t 1 July 2 0 15
Gross book value
Ac c umulated deprec iation/amortisation
and impairment
O pe ning ne t book ba la nc e
Ca pita l a sse t a dditions
Estima te d e xpe nditure on ne w or
re pla c e me nt a sse ts
By purc hase - appropriation equity 1
Tota l a dditions
O the r move me nts
Deprec iation/amortisation expense
Tota l othe r move me nts
As a t 3 0 June 2 0 16
Gross book value
Ac c umulated deprec iation/amortisation
and impairment
Closing ne t book ba la nc e
1
19,160
(5,548)
13 , 6 12
4,977
4,977
Other property,
plant and
equipment
$'000
4,460
(672)
3,788
203
203
Computer
software and
intangibles
$'000
$'000
27,221
50,841
(16,083)
(22,303)
11, 13 8
4,140
4 , 14 0
Total
28,538
9,320
9,320
(6,103)
(831)
(3,667)
(10,601)
(6 , 10 3 )
(8 3 1)
(3 , 6 6 7 )
(10 , 6 0 1)
24,137
4,663
31,361
60,161
(11,651)
(1,503)
(19,750)
(32,904)
12 , 4 8 6
3 , 16 0
11, 6 11
27,257
"Appropriation equity" refers to equity injections appropriations provided through Appropriation
Bill (No. 2) 2015-16, including CDABs.
Prepared on Australian Accounting Standards basis.
172
FWO Budget Statements 2015–16
Table 3.2.7: Schedule of budgeted income and expenses administered on
behalf of Government (for the period ended 30 June)
EXPENSES
Other expenses
Total expenses adm inistered on
behalf of Governm ent
LESS:
OWN-SOURCE INCOME
Non-taxation revenue
Other revenue
Total non-taxation revenue
Total ow n-source revenue
adm inistered on behalf of
Governm ent
Total ow n-sourced incom e
adm inistered on behalf of
Governm ent
Total com prehensive incom e/(loss)
2014–15
Estimated
actual
$'000
2015–16
Budget
$'000
2016–17
Forw ard
estimate
$'000
2017–18
Forw ard
estimate
$'000
2018–19
Forw ard
estimate
$'000
-
-
-
-
-
-
-
-
-
-
300
300
300
300
300
300
300
300
300
300
300
300
300
300
300
300
(300)
300
(300)
300
(300)
300
(300)
300
(300)
Prepared on Australian Accounting Standards basis.
173
FWO Budget Statements 2015–16
Table 3.2.8: Schedule of budgeted assets and liabilities administered on
behalf of Government (as at 30 June)
ASSETS
Financial assets
Trade and other receivables
Other financial assets
Total financial assets
Total assets adm inistered on
behalf of Governm ent
LIABILITIES
Payables
Other payables
Total payables
Total liabilities adm inistered on
behalf of Governm ent
Net assets/(liabilities)
2014–15
Estimated
actual
$'000
2015–16
Budget
$'000
2016–17
Forw ard
estimate
$'000
2017–18
Forw ard
estimate
$'000
2018–19
Forw ard
estimate
$'000
1,281
90
1,281
90
1,281
90
1,281
90
1,281
90
1,371
1,371
1,371
1,371
1,371
1,371
1,371
1,371
1,371
1,371
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
1,371
1,371
1,371
1,371
1,371
Prepared on Australian Accounting Standards basis.
174
FWO Budget Statements 2015–16
Table 3.2.9: Schedule of budgeted administered cash flows (for the period
ended 30 June)
2014–15
Estimated
actual
$'000
OPERATING ACTIVITIES
Cash received
Other
Total cash received
Cash used
Other
Total cash used
Net cash from /(used by)
operating activities
FINANCING ACTIVITIES
Cash received
Other
Total cash received
Cash used
Other
Total cash used
Net cash from /(used by)
financing activities
Net increase/(decrease) in cash
held
Cash and cash equivalents at
beginning of reporting period
Cash from Official Public Account for:
- Appropriations
Total cash from Official Public
Account
Cash to Official Public Account for:
- Appropriations
- Transfers to other entities
Total cash to Official Public
Account
Cash and cash equivalents at end
of reporting period
2015–16
Budget
$'000
2016–17
Forw ard
estimate
$'000
2017–18
Forw ard
estimate
$'000
2018–19
Forw ard
estimate
$'000
300
300
300
300
300
300
300
300
300
300
-
-
-
-
-
-
-
-
-
-
300
300
300
300
300
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
300
300
300
300
300
-
-
-
-
-
-
-
-
-
-
(300)
(300)
(300)
(300)
(300)
(300)
(300)
(300)
(300)
(300)
-
-
-
-
-
Prepared on Australian Accounting Standards basis.
175
FWO Budget Statements 2015–16
Table 3.2.10: Administered capital budget statement (for the period ended
30 June)
The Fair Work Ombudsman has no administered capital budget. For this reason
Table 3.2.10 is not presented.
Table 3.2.11 Statement of administered asset movements (Budget year
2015–16)
The Fair Work Ombudsman has no administered non-financial assets. For this
reason Table 3.2.11 is not presented.
176
FWO Budget Statements 2015–16
3.2.4 Notes to the financial statements
Accounting Policy
The budgeted financial statements have been prepared in accordance with the
requirements of the Finance Minister’s Orders issued by the Minister for
Finance.
The statements have been prepared:
 on an accrual accounting basis
 in compliance with Australian Accounting Standards and Australian
Equivalents to International Financial Reporting Standards (AEIFRS) and
other authoritative pronouncements of the Australian Accounting Standards
Board and the Consensus Views of the Urgent Issues Group.
Agency Revenue from Government
Revenue from Government represents the purchase of outputs from the Fair
Work Ombudsman by the Government.
Agency Revenue – Own Source Income
Revenue from the sale of goods and services is recognised upon the delivery of
the goods or services to customers.
Agency Expenses – Employee Benefits
This item represents payments made and net increases or decreases in
entitlements owed to employees for their services provided in the financial year.
Agency Expenses – Suppliers
This item represents payments to suppliers for goods and services.
Agency Expenses – Depreciation and Amortisation
Property, plant, equipment and intangible assets are written-off to their
estimated residual values over their estimated useful lives to the Fair Work
Ombudsman using, in all cases, the straight-line method of depreciation.
Computing equipment assets are depreciated over their useful lives which are
between three and seven years. Office machines are depreciated over five years
(20 per cent). Leasehold improvements are amortised on a straight-line basis
over the lesser of the estimated useful life of the improvements or the unexpired
period of the lease.
177
FWO Budget Statements 2015–16
Forward estimates of depreciation expense are made using forecasts of net
capital acquisition requirements over the forward years.
Agency Assets – Financial Assets – Cash
Cash represents notes and coins held and deposits at call with a bank or
financial institution.
Agency Assets – Financial Assets – Receivables
Receivables represent amounts owing to the Fair Work Ombudsman for goods
and services it has provided to external parties and cash reserves held in the
Official Public Account.
Agency Assets – Non-Financial Assets
These items represent future economic benefits that the Fair Work Ombudsman
will consume in producing outputs. Apart from re-valued assets, the reported
value represents the purchase price paid less depreciation incurred to date in
using that asset.
Infrastructure, plant and equipment is initially brought to account at cost, except
for purchases costing less than $2,000, which are expensed in the year of
acquisition (other than where they form part of a group of similar items which
are significant in total).
Internally developed or purchased computer software, disclosed in the
Departmental Balance Sheet as intangibles, is expensed in the year of acquisition
except for purchased software costing more than $2,000 or for internally
developed software costing more than $200,000 which are capitalised at cost.
Land and buildings (leasehold improvements) are initially brought to account at
cost, except for purchases costing less than $2,000, which are expensed in the
year of acquisition. The Fair Work Ombudsman annually reassesses and adjusts
the values of land and buildings (leasehold improvements), infrastructure, plant
and equipment.
Agency Liabilities – Provisions – Employees
Provision has been made for the Fair Work Ombudsman’s liability for employee
entitlements arising from services rendered by employees to balance date. This
liability encompasses unpaid wages and salaries, annual and long service leave.
No provision is made for sick leave.
The liability for leave expected to be settled within 12 months has been
measured at the nominal amount.
Other employee entitlements payable later than one year have been estimated at
the present value of the expected future cash outflows in relation to those
178
FWO Budget Statements 2015–16
entitlements. Attrition rates and pay rises through promotion and wage/salary
agreements have been taken into account in calculating the provision for
employee entitlements.
Agency Liabilities – Payables – Suppliers
This item mainly comprises trade creditors and operating lease rentals.
Administered Non-Taxation Revenue – Other Sources
This revenue comprises court awarded penalties relating to breaches of the Fair
Work Act 2009 and other relevant legislation. The penalties are administered by
the Fair Work Ombudsman on behalf of government.
Administered Assets – Financial Assets – Receivables
These assets comprise receivables relating to court awarded penalties for
breaches of the Fair Work Act 2009 and other relevant legislation. The penalties
are administered by the Fair Work Ombudsman on behalf of government.
Administered Cash Flows
These cash flows relate to court awarded penalties for breaches of the Fair Work
Act 2009 and other relevant legislation. The penalties are administered by the
Fair Work Ombudsman on behalf of government and are paid directly into the
Consolidated Revenue Fund.
179
Office of the Fair Work
Building Industry
Inspectorate
Entity resources and planned
performance
OFFICE OF THE FAIR WORK BUILDING INDUSTRY
INSPECTORATE
Section 1: Entity overview and resources .............................................................. 185
1.1
Strategic direction statement ........................................................................ 185
1.2
Entity resource statement ............................................................................. 186
1.3
Budget measures .......................................................................................... 188
Section 2: Outcomes and planned performance.................................................... 189
2.1
Outcomes and performance information ...................................................... 189
Section 3: Explanatory tables and budgeted financial statements ...................... 193
3.1
Explanatory tables......................................................................................... 193
3.2
Budgeted financial statements ...................................................................... 193
183
FWBII Budget Statements 2015–16
OFFICE OF THE FAIR WORK BUILDING INDUSTRY
INSPECTORATE
Section 1: Entity overview and resources
1.2
STRATEGIC DIRECTION STATEMENT
The Office of the Fair Work Building Industry Inspectorate (FWBII) was
established by the Fair Work (Building Industry) Act 2012 on 1 June 2012. FWBII
began operations on 1 June 2012. It operates under the name Fair Work Building
and Construction.
In respect of the building and construction industry, FWBII is primarily
responsible for:
 the provision of education, assistance and advice to industry participants
regarding their rights and obligations
 inquiring into and investigating alleged breaches of relevant workplace laws
 commencing civil penalty litigation, or making submissions to the Fair Work
Commission, to enforce compliance by industry participants
 and referring matters to relevant authorities where appropriate including in
relation to:
– Fair Work (Building Industry) Act 2012
– Fair Work Act 2009, the Fair Work (Transitional Provisions and Consequential
Amendments) Act 2009 and the Independent Contractors Act 2006
– safety net entitlements
– awards, agreements and court and tribunal orders
– the Building Code
– Competition and Consumer Act 2010
– allegations of criminal conduct.
During 2015–16, FWBII plans to achieve the following outcomes:
 enforce workplace relations laws in the building and construction industry
and ensure compliance with those laws by all participants in the building
and construction industry through the provision of education, assistance and
advice and where necessary, civil penalty litigation in the courts
 ensure compliance with building codes of practice through the provision of
education, assistance and advice.
185
FWBII Budget Statements 2015–16
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: Office of the Fair Work Building Industry Inspectorate resource
statement—Budget estimates for 2015–16 as at Budget May 2015
Proposed at
2015–16
Budget
Total 2015–16
estimate
$'000
Estimate of
prior year
amounts
available in
2015–16
$'000
$'000
$'000
48,419
14,986
44
47,635
-
35,160
51
47,635
35,160
51
63,449
47,635
3 5 , 2 11
82,846
63,449
47,635
3 5 , 2 11
82,846
-
-
-
-
-
-
-
-
-
-
-
-
47,635
3 5 , 2 11
82,846
Ac tual
Available
Appropriation
2014–15
O rdina ry a nnua l se rvic e s 1
De pa rtme nta l a ppropria tion
Prior year appropriations 2
Departmental appropriation 3
4
s74 Retained revenue rec eipts
Tota l
Tota l ordina ry a nnua l se rvic e s [A]
O the r se rvic e s 5
De pa rtme nta l non- ope ra ting
Equity injec tions
Tota l
Tota l othe r se rvic e s [B]
Tota l a va ila ble a nnua l
a ppropria tions [A+ B]
63,449
186
FWBII Budget Statements 2015–16
Table 1.1: Office of the Fair Work Building Industry Inspectorate resource
statement—Budget estimates for 2015–16 as at Budget May 2015
(continued)
Ac tual
Available
Appropriation
2014–15
$'000
Estimate of
prior year
amounts
available in
2015–16
$'000
Proposed at
2015–16
Budget
Total 2015–16
estimate
$'000
$'000
S pe c ia l a ppropria tions
-
-
-
-
Tota l spe c ia l a ppropria tions [C]
Tota l a ppropria tions e xc luding
spe c ia l a c c ounts
-
-
-
-
63,449
47,635
35,211
S pe c ia l a c c ounts
-
-
-
Tota l spe c ia l a c c ounts [D]
-
-
-
Tota l re sourc ing [A+ B+ C+ D]
Less appropriations drawn from
annual or spec ial appropriations
above and c redited to spec ial
ac c ounts
63,449
and/or payments to c orporate entities
through annual appropriations
Tota l ne t re sourc ing for the
O ffic e of the Fa ir Work Building
Industry Inspe c tora te
47,635
3 5 , 2 11
82,846
82,846
-
-
-
-
-
-
-
-
63,449
47,635
3 5 , 2 11
82,846
1
Appropriation Bill (No.1) 2015–16.
2
Estimated adjusted balance carried forward from previous year.
3
Includes an amount of $1.601 m 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'.
4
Estimated Retained revenue receipts under section 74 of the PGPA Act.
5
Appropriation Bill (No.2) 2015–16.
Reader note: All figures are GST exclusive.
187
FWBII Budget Statements 2015–16
1.3
BUDGET MEASURES
Budget measures relating to the Office of the Fair Work Building Industry
Inspectorate are detailed in Budget Paper No. 2 and are summarised below.
Table 1.2: Office of the Fair Work Building Industry Inspectorate 2015–16
Budget measures
Part 2: MYEFO measures not previously reported in a portfolio statement
Programme
Measures
Communications and Public Affairs
Savings
Departmental expenses
2014–15 2015–16 2016–17 2017–18 2018–19
$'000
$'000
$'000
$'000
$'000
1.1
(7)
(14)
(14)
(14)
(14)
Total
Total m easures
Departmental
(7)
(14)
(14)
(14)
(14)
(7)
(14)
(14)
(14)
(14)
Total
(7)
(14)
(14)
(14)
(14)
Prepared on a Government Financial Statistics (fiscal) basis.
188
FWBII Budget Statements 2015–16
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 agencies achieve the
intended results of their outcome statements. Agencies 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 Fair Work Building Industry Inspectorate in achieving
government outcomes.
Outcome 1: Enforce workplace relations laws in the building and
construction industry and ensure compliance with those laws by all
participants in the building and construction industry through the
provision of education, assistance and advice.
Outcome 1 Strategy
Key strategies towards achieving FWBII’s outcome in 2015–16 are to:
 provide ready access to information on relevant workplace laws and codes of
practice
 provide education, assistance and advice to industry participants
 conduct site visits, inspections and audits involving the building codes of
practice
 conduct investigations into alleged breaches of workplace laws
 undertake enforcement action, including civil penalty litigation.
189
FWBII Budget Statements 2015–16
Outcome 1 Budgeted Expenses
Table 2.1 provides an overview of the total expenses for Outcome 1, by
programme.
Table 2.1: Budgeted Expenses for Outcome 1
Outcom e 1: Enforce w orkplace relations law s in the
building and construction industry and ensure com pliance
w ith those law s by all participants in the building and
construction industry through the provision of education,
assistance and advice.
Program m e 1.1: Education Services and Com pliance
Departmental expenses
Departmental appropriation1
Expenses not requiring appropriation in the Budget year 2
Total for program m e 1.1
Outcom e 1 Totals by appropriation type
Departmental expenses
Departmental appropriation1
Expenses not requiring appropriation in the Budget year 2
Total expenses for Outcom e 1
Average staffing level (num ber)
2014–15
Estimated
actual
expenses
$'000
2015–16
Estimated
expenses
14,590
785
33,606
402
15,375
34,008
14,590
785
33,606
402
$'000
15,375
34,008
2014–15
139
2015–16
155
1
Departmental appropriation combines 'Ordinary annual services (Appropriation Bill No. 1)' and
'Revenue from independent sources (s 74)'.
2
Expenses not requiring appropriation in the Budget year are made up of depreciation expenses,
amortisation expenses, and audit fees.
Note: Departmental appropriation splits and totals are indicative estimates and may change in the
course of the budget year as government priorities change
190
FWBII Budget Statements 2015–16
Contributions to Outcome 1
Programme 1.1: Education Services and Compliance Activities
Programme objective
Enforce workplace relations laws in the building and construction industry and
ensure compliance with those laws by all participants in the building and
construction industry through the provision of education, assistance and advice
and where necessary civil penalty litigation in the courts.
Table 2.1.1 Programme expenses
2014–15
Estimated
actual
$'000
Annual departmental expenses:
Departmental item
Expenses not requring appropriation in the
Budget year 1
14,590
785
Total program m e expenses
1
15,375
2015–16
Budget
$'000
33,606
402
34,008
2016–17 2017–18 2018–19
Forw ard Forw ard Forw ard
estimate estimate estimate
$'000
$'000
$'000
33,556
1,081
34,637
33,805
34,142
1,251
1,159
35,056
35,301
Expenses not requiring appropriation in the Budget year are made up of depreciation expenses,
amortisation expenses, and audit fees.
Programme 1.1 Deliverables
The deliverables of the FWBII are to:
 provide information, advice and education on workplace laws to foster
voluntary compliance
 conduct site visits, inspections and audits involving the building codes of
practice
 investigate claims regarding alleged breaches of workplace laws and
undertake targeted activities
 litigate, where necessary, to enforce compliance with workplace laws.
Table 2.1.1.A Programme 1.1 Deliverables
Deliverables
Education, investigation, provision of
advice and information services
2014–15
Estimated
actual
$'000
2015–16
Budget
15,375
191
$'000
2016–17
Forw ard
estimate
$'000
2016–17
Forw ard
estimate
$'000
2016–17
Forw ard
estimate
$'000
34,008
34,637
35,056
35,301
FWBII Budget Statements 2015–16
Programme 1.1 Key performance indicators
The key performance indicators for the FWBII are outlined in the following table
and cover the key activities of education, advice and information services and
investigations.
Table 2.1.1.B Programme 1.1 Key performance indicators
Quality
Level of satisfaction of clients with quality and
timeliness of advice and assistance provided
by FWBII.
Timeliness in commencing proceedings over
contraventions of the Fair Work Act 2009, the
Independent Contractors Act 2006, the Fair Work
(Building Industry) Act 2012, agreements,
awards and orders.
Level of satisfaction of a range of industry
participants with contact aimed at promoting
appropriate standards of conduct.
192
2015–16 target
75% of surveyed clients satisfied or highly
satisfied
File 75% of matters in court within 12 months
of the complaint being lodged
75% of surveyed industry participants
satisfied or highly satisfied
FWBII Budget Statements 2015–16
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
The Fair Work Building Industry Inspectorate has no administered funds
appropriations. For this reason Table 3.1.1 is not presented.
3.1.2 Special Accounts
The Fair Work Building Industry Inspectorate has no special accounts. For this
reason Table 3.1.2 is not presented.
3.1.3 Australian Government Indigenous expenditure
The Fair Work Building Industry Inspectorate has no Australian Government
Indigenous expenditure. For this reason Table 3.1.3 is not presented.
3.2
BUDGETED FINANCIAL STATEMENTS
3.2.1 Differences in agency resourcing and financial statements
The Agency Resource Statement (Table 1.1) details the total appropriation
available to an agency from all sources. For departmental operating
appropriations (outputs) this includes carry-forward amounts as well as
amounts appropriated at Budget. As agencies incur and are funded for future
liabilities and employee entitlements, the total amount of departmental
operating appropriation available to an agency is unlikely to be fully utilised in
the Budget year. The difference between the agency resource statement and the
sum of all payments made at the departmental outputs level is the expected
carry-forward amount of resources for the 2015–16 Budget year, including
amounts related to meeting future employee entitlement obligations.
3.2.2 Analysis of budgeted financial statements
The Fair Work Building Industry Inspectorate is budgeting for an operating loss
equal to the unappropriated depreciation and amortisation expense of
$0.3 million for the 2015–16 financial year.
193
FWBII Budget Statements 2015–16
Total revenues are estimated to be $33.6 million and total expenses $34.0 million.
Total assets at the end of the 2015–16 financial year are estimated to be
$51.1 million. The majority of the assets represent receivables (appropriations
receivable) and property fit outs. Asset acquisitions are planned in Information
Technology equipment and systems and on office accommodation fit outs.
Total liabilities for 2015–16 are estimated at $6 million. The largest liability item
is accrued employee entitlements.
194
FWBII Budget Statements 2015–16
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
Total expenses
LESS:
OWN-SOURCE INCOME
Ow n-source revenue
Other
Total ow n-source revenue
Gains
Other
Total gains
Total ow n-source incom e
Net cost of/(contribution by)
services
Revenue from Government
Surplus/(deficit) attributable to the
Australian Governm ent
2014–15
Estimated
actual
$'000
2015–16
Budget
$'000
2016–17
Forw ard
estimate
$'000
2017–18
Forw ard
estimate
$'000
2018–19
Forw ard
estimate
$'000
8,612
6,034
729
19,139
14,523
346
19,704
13,908
1,025
19,994
13,867
1,195
19,925
14,273
1,103
15,375
34,008
34,637
35,056
35,301
46
47
49
49
50
46
47
49
49
50
56
56
56
56
56
56
56
56
56
56
102
103
105
105
106
15,273
14,544
33,905
33,559
34,532
33,507
34,951
33,756
35,195
34,092
(729)
(346)
(1,025)
(1,195)
(1,103)
OTHER COMPREHENSIVE INCOME
Changes in asset revaluation surplus
Total other com prehensive incom e
-
-
-
-
-
-
-
-
-
-
Total com prehensive incom e/(loss)
(729)
(346)
(1,025)
(1,195)
(1,103)
Total com prehensive incom e/(loss)
attributable to the Australian
Governm ent
(729)
(346)
(1,025)
(1,195)
(1,103)
195
FWBII Budget Statements 2015–16
Table 3.2.1: Comprehensive income statement (showing net cost of
services) for the period ended 30 June (continued)
Note: Impact of net cash appropriation arrangements
2014–15
$'000
2015–16
$'000
2016–17
$'000
2017–18
$'000
2018–19
$'000
-
-
-
-
-
729
346
1,025
1,195
1,103
(729)
(346)
(1,025)
(1,195)
(1,103)
Total com prehensive incom e/(loss)
excluding depreciation/am ortisation
expenses previously funded
through revenue appropriations.
less depreciation/amortisation
expenses previously funded through
revenue appropriations 1
Total com prehensive incom e/(loss)
- as per the statem ent of
com prehensive incom e
1
From 2010–11, the government introduced net cash appropriation arrangements where Bill 1
revenue appropriations for the depreciation/amortisation expenses of non-corporate
Commonwealth entities (and select corporate Commonwealth entities) were replaced with a
separate capital budget (the Departmental Capital Budget, or DCB) provided through Bill 1 equity
appropriations. For information regarding DCBs, please refer to Table 3.2.5 Departmental Capital
Budget Statement.
Prepared on Australian Accounting Standards basis.
196
FWBII Budget Statements 2015–16
Table 3.2.2: Budgeted departmental balance sheet (as at 30 June)
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
Other payables
2014–15
Estimated
actual
$'000
2015–16
Budget
259
47,997
48,256
346
538
685
614
2018–19
Forw ard
estimate
$'000
341
44,168
341
44,520
341
44,702
341
44,604
44,509
4,750
568
655
614
44,861
4,120
428
498
614
45,043
3,577
322
223
614
44,945
2,847
727
614
2,183
6,587
5,660
4,736
4,188
51,096
50,521
49,779
49,133
1,543
1,609
3,152
Total provisions
3,495
Net assets
2017–18
Forw ard
estimate
$'000
50,439
Total payables
Provisions
Employee provisions
Total liabilities
$'000
2016–17
Forw ard
estimate
$'000
3,495
1,528
1,026
2,554
3,495
3,495
1,528
1,026
2,554
3,495
3,495
1,528
1,026
2,554
3,495
3,495
1,528
1,026
2,554
3,495
3,495
6,647
6,049
6,049
6,049
6,049
43,792
45,047
44,472
43,730
43,084
197
FWBII Budget Statements 2015–16
Table 3.2.2: Budgeted departmental balance sheet (as at 30 June)
(continued)
2014–15
Estimated
actual
$'000
2015–16
Budget
$'000
2016–17
Forw ard
estimate
$'000
2017–18
Forw ard
estimate
$'000
2018–19
Forw ard
estimate
$'000
EQUITY*
Parent entity interest
Contributed equity
Retained surplus (accumulated
deficit)
38,614
38,268
37,243
36,048
34,945
Total parent entity interest
43,792
45,047
44,472
43,730
43,084
Total Equity
43,792
45,047
44,472
43,730
43,084
5,178
6,779
7,229
* 'Equity' is the residual interest in assets after deduction of liabilities.
Prepared on Australian Accounting Standards basis.
198
7,682
8,139
FWBII Budget Statements 2015–16
Table 3.2.3: Departmental statement of changes in equity—summary of
movement (Budget year 2015–16)
Retained
Asset
Other Contributed
earnings revaluation reserves
equity/
reserve
capital
$'000
$'000
$'000
$'000
Opening balance as at 1 July 2015
Balance carried forw ard from previous
period
Adjusted opening balance
Com prehensive incom e
Surplus/(deficit) for the period
Total comprehensive income
of w hich:
Attributable to the Australian Government
Transactions w ith ow ners
Contributions by owners
Departmental Capital Budget (DCB)
Sub-total transactions with owners
Transfers betw een equity components
Estim ated closing balance as at
30 June 2016
Less: non-controlling interests
Closing balance attributable to the
Australian Governm ent
Total
equity
$'000
38,614
-
-
5,178
43,792
38,614
-
-
5,178
43,792
(346)
-
-
-
(346)
(346)
-
-
-
(346)
(346)
-
-
-
(346)
-
-
-
-
-
-
1,601
1,601
-
1,601
1,601
-
38,268
-
-
-
6,779
-
45,047
-
38,268
-
-
6,779
45,047
Prepared on Australian Accounting Standards basis.
199
FWBII Budget Statements 2015–16
Table 3.2.4: Budgeted departmental statement of cash flows (for the period
ended 30 June)
2014–15
Estimated
actual
$'000
2015–16
Budget
15,394
8
Total cash received
Cash used
Employees
Suppliers
Total cash used
Net cash from /(used by)
operating activities
INVESTING ACTIVITIES
Cash received
Other
OPERATING ACTIVITIES
Cash received
Appropriations
Other
Total cash received
Cash used
Purchase of property, plant and
equipment
Total cash used
Net cash from /(used by)
investing activities
2016–17
Forw ard
estimate
$'000
2017–18
Forw ard
estimate
$'000
2018–19
Forw ard
estimate
$'000
32,444
10
33,155
49
33,574
49
34,190
50
15,402
32,454
33,204
33,623
34,240
7,745
6,804
18,890
11,168
19,704
13,852
19,994
13,811
19,925
14,217
14,549
30,058
33,556
33,805
34,142
853
2,396
$'000
(352)
(182)
98
-
-
-
-
-
-
-
-
-
-
1,314
4,750
98
271
555
1,314
4,750
98
271
555
(1,314)
(4,750)
(98)
(271)
(555)
200
FWBII Budget Statements 2015–16
Table 3.2.4: Budgeted departmental statement of cash flows (for the period
ended 30 June) (continued)
2014–15
Estimated
actual
$'000
FINANCING ACTIVITIES
Cash received
Contributed equity
Total cash received
Cash used
Other
Total cash used
Net cash from /(used by)
financing activities
Net increase/(decrease) in cash
held
Cash and cash equivalents at the
beginning of the reporting period
Cash and cash equivalents at the
end of the reporting period
2015–16
Budget
$'000
2016–17
Forw ard
estimate
$'000
2017–18
Forw ard
estimate
$'000
2018–19
Forw ard
estimate
$'000
463
2,436
450
453
457
463
2,436
450
453
457
-
-
-
-
-
-
-
-
-
-
463
2,436
450
453
457
2
82
-
-
-
257
259
341
341
341
259
341
341
341
341
Prepared on Australian Accounting Standards basis.
201
FWBII Budget Statements 2015–16
Table 3.2.5: Departmental capital budget statement (for the period ended
30 June)
2014–15
Estimated
actual
$'000
NEW CAPITAL APPROPRIATIONS
Capital budget - Bill 1 (DCB)
Total new capital appropriations
Provided for:
Purchase of non-financial assets
Total Items
PURCHASE OF NON-FINANCIAL
ASSETS
Funded by capital appropriation DCB1
Funded internally from departmental
resources 2
2015–16
Budget
$'000
2016–17
Forw ard
estimate
$'000
2017–18
Forw ard
estimate
$'000
2018–19
Forw ard
estimate
$'000
442
1,601
450
453
457
442
1,601
450
453
457
442
1,601
450
453
457
442
1,601
450
453
457
1,314
836
98
271
555
-
3,914
-
-
-
TOTAL
RECONCILIATION OF CASH USED TO
ACQUIRE ASSETS TO ASSET
MOVEMENT TABLE
Total purchases
1,314
4,750
98
271
555
1,314
4,750
98
271
555
Total cash used to acquire assets
1,314
4,750
98
271
555
1
Does not include annual finance lease costs. Include purchase from current and previous years'
Departmental Capital Budgets (DCBs).
2
Includes the following sources of funding:
- current Bill 1 and prior year Act 1/3/5 appropriations (excluding amounts from the DCB).
- donations and contributions
- gifts
- internally developed assets
- s74 relevant agency receipts
- proceeds from the sale of assets
Prepared on Australian Accounting Standards basis.
202
FWBII Budget Statements 2015–16
Table 3.2.6: Statement of asset movements (Budget year 2015–16)
Buildings
As a t 1 July 2 0 15
Gross
book value
Ac c umulated
deprec iation/amortisation and
impairment
O pe ning ne t book ba la nc e
Ca pita l a sse t a dditions
Estima te d e xpe nditure on ne w
or re pla c e me nt a sse ts
By purc hase - appropriation equity 1
Tota l a dditions
O the r move me nts
Deprec iation/amortisation expense
Tota l othe r move me nts
As a t 3 0 June 2 0 16
Gross book value
Ac c umulated
deprec iation/amortisation and
impairment
Closing ne t book ba la nc e
1
$'000
Other property,
plant and
equipment
$'000
Computer
software and
intangibles
$'000
Total
$'000
7,769
1,189
1,494
10,452
(7,423)
346
(651)
538
(809)
685
(8,883)
1, 5 6 9
4,640
110
-
4,750
4,640
110
-
4,750
(236)
(80)
(30)
(346)
(2 3 6 )
(8 0 )
(3 0 )
(3 4 6 )
12,409
1,299
1,494
15,202
(7,659)
(731)
(839)
(9,229)
4,750
568
655
5,973
"Appropriation equity" refers to equity injections appropriations provided through Appropriation
Bill (No. 2) 2015-16, including CDABs.
Prepared on Australian Accounting Standards basis.
203
FWBII Budget Statements 2015–16
Table 3.2.7: Schedule of budgeted income and expenses administered on
behalf of Government (for the period ended 30 June)
The FWBII has no budgeted administered income or expenses. For this reason
Table 3.2.7 is not presented.
Table 3.2.8: Schedule of budgeted assets and liabilities administered on
behalf of Government (as at 30 June)
The FWBII has no budgeted administered assets or liabilities. For this reason
Table 3.2.8 is not presented.
Table 3.2.9: Schedule of budgeted administered cash flows (for the period
ended 30 June)
The FWBII has no budgeted administered cash flows. For this reason Table 3.2.9
is not presented.
Table 3.2.10: Administered capital budget statement (for the period ended
30 June)
The FWBII has no administered capital budget. For this reason Table 3.2.10 is
not presented.
Table 3.2.11: Statement of administered asset movements (Budget year
2015–16)
The FWBII has no administered non-financial assets. For this reason Table 3.2.11
is not presented.
204
FWBII Budget Statements 2015–16
3.2.4 Notes to the Financial Statements
Accounting Policy
The budgeted financial statements have been prepared in accordance with the
requirements of the Finance Minister’s Orders issued by the Minister for
Finance.
The statements have been prepared:
 On an accrual accounting basis
 in compliance with Australian Accounting Standards and Australian
Equivalents to International Financial Reporting Standards (AEIFRS) and
other authoritative pronouncements of the Australian Accounting Standards
Board and the Consensus Views of the Urgent Issues Group.
Agency Revenue from government
Revenue from government represents the purchase of outputs from the FWBII
by the government.
Agency Revenue – Own Source Income
Revenue from the sale of goods and services is recognised upon the delivery of
the goods or services to customers.
Agency Expenses – Employee Benefits
This item represents payments made and net increases or decreases in
entitlements owed to employees for their services provided in the financial year.
Agency Expenses – Suppliers
This item represents payments to suppliers for goods and services.
Agency Expenses – Depreciation and Amortisation
Property, plant, equipment and intangible assets are written-off to their
estimated residual values over their estimated useful lives to FWBII using the
straight-line method of depreciation. Forward estimates of depreciation
expenses are made using forecasts of net capital acquisitions over the forward
years.
Agency Assets – Financial Assets – Cash
Cash represents notes and coins held and deposits at call with a bank or
financial institution.
205
FWBII Budget Statements 2015–16
Agency Assets – Financial Assets – Receivables
Receivables represent amounts owing to FWBII for cash reserves held in the
Official Public Account and prepayments.
Agency Assets – Non-Financial Assets
These items represent future economic benefits that the FWBII will consume in
producing outputs.
Property, plant and equipment and intangibles are brought to account at cost,
except for purchases costing less than $50,000 for internally developed computer
software, less than $20,000 for leasehold improvements and less than $2000 for
all other classes, which are expensed in the year of acquisition (other than where
they form part of a group of similar items which are significant in total).
Following initial recognition at cost property, plant and equipment are carried at
fair value less accumulated depreciation. Valuations are conducted with
sufficient frequency to ensure that the carrying amount does not differ
materially from the assets’ fair values at reporting date.
Agency Liabilities – Provisions – Employees
Provision has been made for the FWBII’s liability for employee entitlements
arising from services rendered by employees to balance date. This liability
encompasses unpaid wages and salaries, annual and long service leave. No
provision is made for sick leave.
Employee entitlements payable are measured as the present value of the
estimated future cash outflows to be made in respect of services provided by
employees up to the reporting date. Liabilities expected to be settled within
twelve months are measured at the nominal amount.
Agency Liabilities – Payables – Suppliers
Suppliers and other payables are recognised at amortised cost. Liabilities are
recognised to the extent that the goods or services have been received (and
irrespective of having been invoiced).
206
Safe Work Australia
Entity resources and planned
performance
SAFE WORK AUSTRALIA
Section 1: Entity overview and resources .............................................................. 211
1.1
Strategic direction statement ........................................................................ 211
1.2
Entity resource statement ............................................................................. 213
1.3
Budget measures .......................................................................................... 215
Section 2: Outcomes and planned performance.................................................... 216
2.1
Outcomes and performance information ...................................................... 216
Section 3: Explanatory tables and budgeted financial statements ...................... 222
3.1
Explanatory tables......................................................................................... 222
3.2
Budgeted financial statements ...................................................................... 223
209
SWA Budget Statements 2015–16
SAFE WORK AUSTRALIA
Section 1: Entity overview and resources
1.1
STRATEGIC DIRECTION STATEMENT
Safe Work Australia was established as a Statutory Agency on 1 November 2009
under the Safe Work Australia Act 2008 (the Act). The agency operates under the
Commonwealth Government's accountability and governance frameworks.
Safe Work Australia is the body leading the development of national policy to
improve work health and safety and workers’ compensation across Australia.
Safe Work Australia works collaboratively with regulators, industry and worker
associations and the community, to realise the national vision of healthy, safe and
productive working lives.
The establishment of Safe Work Australia was provided for in the
Intergovernmental Agreement for Regulatory and Operational Reform in Occupational
Health and Safety (IGA), agreed by the Council of Australian Governments
(COAG) on 3 July 2008.
The agency is jointly funded by the Commonwealth, state and territory
governments. This funding arrangement promotes collaboration with
jurisdictions on policy development, implementation, compliance and
enforcement, and communication activities.
Safe Work Australia has 15 Members, including an independent Chair, nine
Members representing the Commonwealth and each state and territory, two
Members representing the interests of employers, two representing the interests
of employees, and the Chief Executive Officer of Safe Work Australia (CEO).
The CEO manages the agency under section 45 of the Act and is the Accountable
Authority in accordance with the Public Governance, Performance and
Accountability Act 2013.
Together, the Safe Work Australia Members and the agency work to achieve:
 significant and continued reductions in the incidence of work-related death,
injury and illness through
– an improved and reformed work health and safety framework
– increased work health and safety awareness and skills
– developing and maintaining an evidence base which informs policy and
practice
– reduced exposure to work-related hazards causing injury and illness
– improved quality of workplace controls
211
SWA Budget Statements 2015–16
 improved outcomes for injured workers and their employers through more
effective, efficient, clearly understood and sustainable workers’
compensation arrangements.
During 2015–16, Safe Work Australia will continue to be a model for the
innovative development of multi-stakeholder policy and be central to Australia
becoming a world leader in the delivery of improved safety and compensation
outcomes. We will do this by:
 acting as a forum to bring together and recognise varying views and interests
to enable the effective development of national policy
 using our influence to increase knowledge and awareness of health and
safety and workers’ compensation and normalise the conversation about safe
work
 being a key source of work health and safety and workers’ compensation
research, evaluation and data.
212
SWA Budget Statements 2015–16
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 departmental classification.
Table 1.1: Safe Work Australia resource statement — Budget estimates for
2015–16 as at Budget May 2015
Proposed at
2015–16
Budget
Total 2015–16
estimate
$'000
Estimate of
prior year
amounts
available in
2015–16
$'000
$'000
$'000
Ac tual
Available
Appropriation
2014–15
1
O rdina ry a nnua l se rvic e s
De pa rtme nta l a ppropria tion
Prior year appropriations 2
3
Departmental appropriation
Tota l
9
9,832
-
9,705
9,705
9,841
-
9,705
9,705
Tota l ordina ry a nnua l se rvic e s [A]
9,841
-
9,705
9,705
O the r se rvic e s
-
-
-
-
Tota l
-
-
-
-
Tota l othe r se rvic e s [B]
-
-
-
-
9,841
-
9,705
9,705
Tota l a va ila ble a nnua l
a ppropria tions [A+ B]
213
SWA Budget Statements 2015–16
Table 1.1: Safe Work Australia resource statement — Budget estimates for
2015–16 as at Budget May 2015 (continued)
Ac tual
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
S pe c ia l a ppropria tions
-
-
-
-
Tota l spe c ia l a ppropria tions [C]
-
-
-
-
9,841
-
9,705
9,705
10,699
9,832
-
10,999
9,705
10,999
9,705
Tota l a ppropria tions e xc luding
spe c ia l a c c ounts
S pe c ia l a c c ounts
Opening balanc e 4
Appropriation rec eipts 5
Non- appropriation rec eipts to Spec ial
Ac c ounts
10,996
-
11,036
11,036
Tota l spe c ia l a c c ounts [D]
3 1, 5 2 7
-
3 1, 7 4 0
3 1, 7 4 0
Tota l re sourc ing [A+ B+ C+ D]
4 1, 3 6 8
-
4 1, 4 4 5
4 1, 4 4 5
-
-
-
-
(9,832)
-
(9,705)
(9,705)
Less appropriations drawn from
annual or spec ial appropriations
above and c redited to spec ial
ac c ounts
and/or payments to c orporate entities
through annual appropriations
Tota l ne t re sourc ing for S a fe
Work Austra lia
3 1, 5 3 6
-
3 1, 7 4 0
3 1, 7 4 0
1
Appropriation Bill (No.1) 2015–16.
2
Estimated adjusted balance carried forward from previous year.
3
Includes an amount of $0.073m 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'.
4
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.
5
Appropriation receipts from Safe Work Australia annual and special appropriations for 2014–15
included above.
Reader note: All figures are GST exclusive.
214
SWA Budget Statements 2015–16
1.3
BUDGET MEASURES
Safe Work Australia does not have any new measures since the 2014–15 Budget.
For this reason Table 1.2 is not presented.
215
SWA Budget Statements 2015–16
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 Safe Work Australia in achieving government outcomes.
Outcome 1: Healthier, safer and more productive workplaces through
improvements to Australian work health and safety and workers’
compensation arrangements.
Outcome 1 strategy
Safe Work Australia works with representatives of the Commonwealth, state
and territory governments, employers and employees to:
 support the implementation of the Australian Work Health and Safety Strategy
2012—2022
 promote community awareness and knowledge of work health and safety
and workers’ compensation
 support evidence informed policy, programmes and practice through
national work health and safety and workers’ compensation data, research
and evaluation programmes
 improve and reform work health and safety laws in Australia to provide a
consistent, equitable and high level of protection to all workers, while
ensuring practicability for small business and individual workers
 promote consistent approaches and improved knowledge, skills and
capabilities for managing health and safety hazards and risks
216
SWA Budget Statements 2015–16
 identify opportunities to improve workers’ compensation arrangements
 develop nationally consistent explosives regulation
 cooperate and share information, expertise and experience with international
organisations
217
SWA Budget Statements 2015–16
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
Outcom e 1: Healthier, safer and m ore productive
w orkplaces through im provem ents to Australian w ork
health and safety and w orkers' com pensation
arrangem ents.
Program m e 1.1: Reform of and im provem ents to
Australian w ork health and safety and w orkers'
com pensation arrangem ents.
Departmental expenses
Departmental appropriation1
Special accounts
Expenses not requiring appropriation in the Budget year 2
Total for program m e 1.1
Outcom e 1 Totals by appropriation type
Departmental expenses
Departmental appropriation1
Special accounts
Expenses not requiring appropriation in the Budget year 2
Total expenses for Outcom e 1
Average staffing level (num ber)
2014–15
Estimated
actual
expenses
$'000
2015–16
Estimated
expenses
9,607
10,996
544
9,632
11,036
231
21,147
20,899
9,607
10,996
544
9,632
11,036
231
$'000
21,147
20,899
2014–15
95
2015–16
101
1
Departmental appropriation combines 'Ordinary annual services (Appropriation Bill No. 1)' and
'Revenue from independent sources (s 74)'.
2
Expenses not requiring appropriation in the Budget year are made up of depreciation expenses,
amortisation expenses, and audit fees.
Note: Departmental appropriation splits and totals are indicative estimates and may change in the
course of the budget year as government priorities change.
218
SWA Budget Statements 2015–16
Contributions to Outcome 1
Programme 1.1: Reform of and improvements to Australian work health
and safety and workers’ compensation arrangements
Programme objective
Safe Work Australia has an important national role to achieve significant and
continual reductions in the incidence of work-related death, injury and illness
and to improve outcomes for injured workers and their employers.
To be able to meet its objectives Safe Work Australia works collaboratively with
regulators, industry and employee associations and the community to achieve
healthy, safe and productive working lives for all Australians.
Safe Work Australia is required by the Act to prepare a corporate plan every
four years which deals with the outcomes to be achieved by Safe Work Australia
and the strategies to be followed to achieve those outcomes. An operational plan
is required to be prepared each year to outline the activities to give effect to
these strategies.
Programme expenses
The work of the agency continues to focus on the objectives of Programme 1 and
as prescribed by legislation. The agency has not identified any significant trends
or variances over the forward years.
Table 2.1.1 Programme expenses
Special account expenses:
Safe Work Australia Special Account
Annual departmental expenses:
Ordinary annual services (Appropriation Bill
No. 1)
Expenses not requring appropriation in the
Budget year 1
Total program m e expenses
2014–15
Estimated
actual
$'000
2015–16
Budget
$'000
2016–17
Forw ard
estimate
$'000
2017–18
Forw ard
estimate
$'000
2018–19
Forw ard
estimate
$'000
9,996
10,027
10,262
10,316
10,574
9,607
9,632
9,887
10,317
10,574
544
231
217
160
166
20,147
19,890
20,366
20,793
21,314
Expenses not requiring appropriation in the Budget year are made up of depreciation expenses,
amortisation expenses, and audit fees.
1
219
SWA Budget Statements 2015–16
Programme 1.1 Deliverables
The deliverables for Safe Work Australia are highlighted in its annual
operational plan:
 Coordinate and monitor the implementation of the Australian Work Health and
Safety Strategy 2012–2022.
 Promote consistent messages on work health and safety and workers'
compensation through the implementation of the Communication and
Stakeholder Engagement Strategy.
 Collect, maintain, improve and report on national work health and safety
and workers' compensation data through implementation of the Data and
Analysis Work Plan 2015–16.
 Identify new priority issues and undertake and disseminate research
including on emerging issues and through implementation of the Research
and Evaluation Work Plan 2015–16.
 Monitor, evaluate and improve the model work health and safety laws to
improve safety outcomes, address issues impeding the effective and efficient
operation of the laws and remove unnecessary over-regulation.
 Facilitate the development of accessible, effective and practical material to
aid understanding and compliance; minimise regulatory cost; and support
improved work health and safety outcomes, particularly for small business
and individuals.
 Improve consistency in workers' compensation arrangements through
implementation of the Workers’ Compensation Work Plan 2015–16.
 Develop policy proposals that will lead to nationally consistent explosives
regulation.
 Liaise with other countries or international organisations on matters relating
to work health and safety and workers' compensation including representing
Australia as appropriate.
220
SWA Budget Statements 2015–16
Programme 1.1 Key performance indicators
Key performance indicators are framed around the operational plan. The
effectiveness of key activities to assist in reducing death, injury and disease and
towards meeting the outcome of healthier, safer and more productive
workplaces will be measured through systematic review and evaluation. The
agency’s performance measurement framework will be reviewed during
2015–2016.
Table 2.1.1.A Programme 1.1 Key performance indicators
Quality
The work health and safety framework continues
to be developed, implemented and reviewed in
accordance with COAG requirements.
Level of satisfaction of the Chair of Safe Work
Australia with how the agency is achieving the
deliverables of its operational plan.
Level of satisfaction of the Members of Safe Work
Australia with how the agency is achieving the
deliverables of its operational plan.
221
2015–16 target
COAG requirements are met.
Chair rates the performance of the
agency as very good or above.
80% of Members agree the agency
is achieving the deliverables of its
operational plan.
SWA Budget Statements 2015–16
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
Safe Work Australia has no administered funds. For this reason Table 3.1.1 is not
presented.
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 Safe
Work Australia.
Table 3.1.2: Estimates of special account flows and balances
Outcome
Safe Work Australia Special
Account (D) 2015–16
Safe Work Australia
Special Account (D)
2014–15
Total special accounts
2015–16 Budget estim ate
Total special accounts
2014–15 estimated actual
1
Opening
balance
$'000
Receipts Payments Adjustments
$'000
$'000
$'000
Closing
balance
$'000
10,999
20,742
(20,442)
-
11,299
10,699
20,828
(20,528)
-
10,999
10,999
20,742
(20,442)
-
11,299
10,699
20,828
(20,528)
-
10,999
1
(D) = Departmental
3.1.3 Australian Government Indigenous expenditure
Safe Work Australia has no Australian Government Indigenous expenditure to
report. For this reason Table 3.1.3 is not presented.
222
SWA Budget Statements 2015–16
3.2
BUDGETED FINANCIAL STATEMENTS
3.2.1 Differences in entity resourcing and financial statements
The agency receives funds from states and territories and matched
appropriation funding from the Commonwealth as provided for in the IGA.
3.2.2 Analysis of budgeted financial statements
The agency is not expecting any major changes in its operations from a financial
perspective. Funding arrangements are provided for in the IGA.
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
Grants
Depreciation and amortisation
Total expenses
LESS:
OWN-SOURCE INCOME
Ow n-source revenue
Sale of goods and rendering of services
Total ow n-source revenue
Gains
Sale of assets
Other
Total gains
Total ow n-source incom e
Net cost of/(contribution by)
services
Revenue from Government
Surplus/(deficit) attributable to the
Australian Governm ent
Total com prehensive incom e/(loss)
Total com prehensive incom e/(loss)
attributable to the Australian
Governm ent
2014–15
Estimated
actual
$'000
2015–16
Budget
$'000
2016–17
Forw ard
estimate
$'000
2017–18
Forw ard
estimate
$'000
2018–19
Forw ard
estimate
$'000
12,810
6,753
100
484
12,868
6,752
100
171
13,258
6,851
100
157
13,625
6,969
100
100
14,180
6,929
100
106
20,147
19,891
20,366
20,794
21,315
9,996
10,028
10,262
10,317
10,575
9,996
10,028
10,262
10,317
10,575
60
60
60
60
60
60
60
60
60
60
10,056
10,088
10,322
10,377
10,635
10,091
9,607
9,803
9,632
10,044
9,887
10,417
10,317
10,680
10,574
(484)
(171)
(157)
(100)
(106)
(484)
(171)
(157)
(100)
(106)
(484)
(171)
(157)
(100)
(106)
223
SWA Budget Statements 2015–16
Table 3.2.1: Comprehensive income statement (showing net cost of
services) for the period ended 30 June (continued)
Note: Impact of net cash appropriation arrangements
2014–15
$'000
2015–16
$'000
2016–17
$'000
2017–18
$'000
2018–19
$'000
-
-
-
-
-
484
171
157
100
106
(484)
(171)
(157)
(100)
(106)
Total com prehensive incom e/(loss)
excluding depreciation/am ortisation
expenses previously funded
through revenue appropriations.
less depreciation/amortisation
expenses previously funded through
revenue appropriations 1
Total com prehensive incom e/(loss)
- as per the statem ent of
com prehensive incom e
1
From 2010–11, the government introduced net cash appropriation arrangements where Bill 1
revenue appropriations for the depreciation/amortisation expenses of non-corporate
Commonwealth entities (and select corporate Commonwealth entities) were replaced with a
separate capital budget (the Departmental Capital Budget, or DCB) provided through Bill 1 equity
appropriations. For information regarding DCBs, please refer to Table 3.2.5 Departmental Capital
Budget Statement.
Prepared on Australian Accounting Standards basis.
224
SWA Budget Statements 2015–16
Table 3.2.2: Budgeted departmental balance sheet (as at 30 June)
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
Assets held for sale
Total assets
LIABILITIES
Payables
Suppliers
Other payables
2014–15
Estimated
actual
$'000
2015–16
Budget
303
10,991
11,294
283
194
88
82
$'000
2016–17
Forw ard
estimate
$'000
2017–18
Forw ard
estimate
$'000
2018–19
Forw ard
estimate
$'000
303
11,291
303
11,291
303
11,291
303
11,291
11,594
183
167
117
82
11,594
213
184
146
82
11,594
343
144
196
82
11,594
343
334
146
82
647
-
549
-
625
-
765
-
905
-
11,941
12,143
12,219
12,359
12,499
2,008
392
2,008
392
2,008
392
2,008
392
2,008
392
Total payables
Provisions
Employee provisions
2,400
Total provisions
3,713
4,013
4,013
4,013
4,013
Total liabilities
6,113
6,413
6,413
6,413
6,413
Net assets
5,828
5,730
5,806
5,946
6,086
3,713
225
2,400
4,013
2,400
4,013
2,400
4,013
2,400
4,013
SWA Budget Statements 2015–16
Table 3.2.2: Budgeted departmental balance sheet (as at 30 June)
(continued)
2014–15
Estimated
actual
$'000
2015–16
Budget
$'000
2016–17
Forw ard
estimate
$'000
2017–18
Forw ard
estimate
$'000
2018–19
Forw ard
estimate
$'000
EQUITY*
Parent entity interest
Contributed equity
Reserves
Retained surplus (accumulated
deficit)
4,223
859
746
575
418
318
212
Total parent entity interest
5,828
5,730
5,806
5,946
6,086
Total Equity
5,828
5,730
5,806
5,946
6,086
4,296
859
4,529
859
* ’Equity’ is the residual interest in assets after deduction of liabilities.
Prepared on Australian Accounting Standards basis.
226
4,769
859
5,015
859
SWA Budget Statements 2015–16
Table 3.2.3: Departmental statement of changes in equity — summary of
movement (Budget year 2015–16)
Retained
Asset
Other Contributed
earnings revaluation reserves
equity/
$
reserve
capital
'000
$'000
$'000
$'000
Opening balance as at 1 July 2015
Balance carried forw ard from previous
period
Adjusted opening balance
Com prehensive incom e
Other comprehensive income
Surplus/(deficit) for the period
Total comprehensive income
of w hich:
Attributable to the Australian Government
Transactions w ith ow ners
Contributions by owners
Departmental Capital Budget (DCB)
Sub-total transactions with owners
Transfers betw een equity
Transfers betw een equity components
Estim ated closing balance as at 30 June
2016
Less: non-controlling interests
Closing balance attributable to the
Australian Governm ent
Prepared on Australian Accounting Standards basis.
227
Total
equity
$'000
746
746
859
859
-
4,223
4,223
5,828
5,828
(171)
-
-
-
(171)
(171)
-
-
-
(171)
(171)
-
-
-
(171)
-
-
-
73
73
-
-
-
73
73
-
-
-
-
-
575
-
859
-
-
4,296
-
5,730
-
575
859
-
4,296
5,730
SWA Budget Statements 2015–16
Table 3.2.4: Budgeted departmental statement of cash flows (for the period
ended 30 June)
OPERATING ACTIVITIES
Cash received
Appropriation Receipts from
Government
Sale of goods and rendering of
services
2014–15
Estimated
actual
$'000
2015–16
Budget
$'000
2016–17
Forw ard
estimate
$'000
2017–18
Forw ard
estimate
$'000
2018–19
Forw ard
estimate
$'000
9,607
9,632
9,887
10,317
10,574
10,996
11,038
11,296
11,358
11,641
Total cash received
Cash used
Employees
Suppliers
Grants
Net GST Paid
20,603
20,670
21,183
21,675
22,215
12,810
6,730
100
687
12,868
6,752
100
687
13,258
6,852
100
695
13,625
6,850
100
695
13,285
7,935
100
695
Total cash used
Net cash from /(used by)
operating activities
INVESTING ACTIVITIES
Cash received
Proceeds from sales of property,
plant and equipment
20,327
20,407
20,905
21,270
22,015
276
263
278
405
200
Total cash received
Cash used
Purchase of property, plant and
-
-
-
-
-
-
-
-
-
-
225
73
233
240
246
225
73
233
240
246
(225)
(73)
(233)
(240)
(246)
225
225
73
73
233
233
240
240
246
246
276
276
263
263
278
278
405
405
200
200
(51)
-
(190)
-
(45)
-
(165)
-
46
-
Cash and cash equivalents at the
beginning of the reporting period
303
303
303
303
303
Cash and cash equivalents at the
end of the reporting period
303
303
303
303
303
Total cash used
Net cash from /(used by)
investing activities
FINANCING ACTIVITIES
Cash received
Contributed equity
Total cash received
Cash used
Other
Total cash used
Net cash from /(used by)
financing activities
Net increase/(decrease) in cash
228
SWA Budget Statements 2015–16
Table 3.2.5: Departmental capital budget statement (for the period ended
30 June)
2014–15
Estimated
actual
$'000
NEW CAPITAL APPROPRIATIONS
Capital budget - Bill 1 (DCB)
Total new capital appropriations
Provided for:
Purchase of non-financial assets
Annual finance lease costs
Other Items
Total Items
PURCHASE OF NON-FINANCIAL
ASSETS
Funded by capital appropriation - DCB1
Funded internally from departmental
resources 2
2015–16
Budget
$'000
2016–17
Forw ard
estimate
$'000
2017–18
Forw ard
estimate
$'000
2018–19
Forw ard
estimate
$'000
225
73
233
240
246
225
73
233
240
246
225
-
73
-
233
-
240
-
246
-
225
73
233
240
246
225
73
233
240
246
-
-
-
-
-
TOTAL
RECONCILIATION OF CASH USED TO
ACQUIRE ASSETS TO ASSET
MOVEMENT TABLE
Total purchases
225
73
233
240
246
225
73
233
240
246
Total cash used to acquire assets
225
73
233
240
246
1
Does not include annual finance lease costs. Include purchases from current and previous years'
Departmental Capital Budgets (DCBs).
2
Includes the following sources of funding:
- current Bill 1 and prior year Act 1/3/5 appropriations (excluding amounts from the DCB)
- donations and contributions
- gifts
- internally developed assets
- s 74 Retained revenue receipts
- proceeds from the sale of assets.
229
SWA Budget Statements 2015–16
Table 3.2.6: Statement of asset movements (Budget year 2015–16)
Buildings
As a t 1 July 2 0 15
Gross book value
Ac c umulated
deprec iation/amortisation and
impairment
O pe ning ne t book ba la nc e
Ca pita l a sse t a dditions
Estima te d e xpe nditure on ne w
or re pla c e me nt a sse ts
By purc hase - appropriation ordinary
annual servic es1
Tota l a dditions
O the r move me nts
Deprec iation/amortisation expense
Tota l othe r move me nts
As a t 3 0 June 2 0 16
Gross book value
Ac c umulated
deprec iation/amortisation and
impairment
Closing ne t book ba la nc e
1
$'000
Other property,
plant and
equipment
$'000
Computer
software and
intangibles
$'000
Total
$'000
1,169
297
434
1,900
(886)
(103)
(346)
(1,335)
283
19 4
88
565
-
27
27
46
46
73
73
(100)
(54)
(17)
(171)
(10 0 )
(5 4 )
(17 )
(17 1)
1,169
324
480
1,973
(986)
(157)
(363)
(1,506)
18 3
16 7
117
467
"Appropriation ordinary annual services" refers to funding provided through Appropriation Bill
(No.1) 2015–16 for depreciation/amortisation expenses, DCBs or other operational expenses.
230
SWA Budget Statements 2015–16
Table 3.2.7: Schedule of budgeted income and expenses administered on
behalf of government (for the period ended 30 June)
Safe Work Australia has no income and expenses administered on behalf of
government. For this reason Table 3.2.7 is not presented.
Table 3.2.8 Schedule of budgeted assets and liabilities administered on
behalf of government (as at 30 June)
Safe Work Australia has no administered assets and liabilities. For this reason
Table 3.2.8 is not presented.
Table 3.2.9: Schedule of budgeted administered cash flows (for the period
ended 30 June)
Safe Work Australia has no administered cash flows. For this reason Table 3.2.9
is not presented.
Table 3.2.10: Administered capital budget statement (for the period ended
30 June)
Safe Work Australia has no administered capital purchases. For this reason
Table 3.2.10 is not presented.
Table 3.2.11: Statement of administered asset movements (Budget year
2015–16)
Safe Work Australia has no administered non-financial assets. For this reason
Table 3.2.11 is not presented.
3.2.4 Notes to the financial statements
Other gains represented in the Comprehensive Income Statement are resources
received free of charge from other Commonwealth agencies.
231
Workplace Gender Equality
Agency
Entity resources and planned
performance
WORKPLACE GENDER EQUALITY AGENCY
Section 1: Entity overview and resources .............................................................. 237
1.1
Strategic direction statement ........................................................................ 237
1.2
Entity resource statement ............................................................................. 238
1.3
Budget measures .......................................................................................... 240
Section 2: Outcomes and planned performance.................................................... 241
2.1
Outcomes and performance information ...................................................... 241
Section 3: Explanatory tables and budgeted financial statements ...................... 248
3.1
Explanatory tables......................................................................................... 248
3.2
Budgeted financial statements ...................................................................... 249
235
WGEA Budget Statements 2015–16
WORKPLACE GENDER EQUALITY AGENCY
Section 1: Entity overview and resources
1.1
STRATEGIC DIRECTION STATEMENT
The Workplace Gender Equality Agency (WGEA), established under the
Workplace Gender Equality Act 2012 (the Act), is charged with promoting and
improving gender equality in Australian workplaces. WGEA’s vision is for
women and men to be equally represented, valued and rewarded.
Non-public sector employers with 100 or more employees (relevant employers)
are required to report to WGEA annually against standardised categories
described as gender equality indicators (GEIs).
This reporting data underpins initiatives to promote and improve workplace
gender equality through:
 the provision to each relevant employer of a confidential, customised
benchmark report which will enable the employer to identify areas for
improvement, compare their gender performance to their peers and track
progress over time
 the publication of aggregated benchmark data on an interactive data centre
on the Agency’s website
 the publication of a detailed report of the reporting data collected by the
Agency from relevant employers including explanatory and interpretative
material.
WGEA offers a citation which recognises leading workplace gender equality
practice, the WGEA Employer of Choice for Gender Equality citation. This
citation has been designed to align with the Act and reflect current thinking on
what is leading practice in gender equality. The citation delivers significant
advantage to successful applicants in enabling them to differentiate their
employer brand and attract and retain top talent. The first successful applicants
under the WGEA Employer of Choice for Gender Equality were named in 2014.
WGEA will continue to deliver a comprehensive education programme, develop
tools and resources, and drive change through innovative public awareness
campaigns in key areas such as pay equity and flexible working.
237
WGEA Budget Statements 2015–16
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: WGEA resource statement — Budget estimates for 2015–16 as
at Budget May 2015
Proposed at
2015–16
Budget
Total 2015–16
estimate
$'000
Estimate of
prior year
amounts
available in
2015–16
$'000
$'000
$'000
1,114
5,008
742
-
5,132
742
5,132
Ac tual
Available
Appropriation
2014–15
1
O rdina ry a nnua l se rvic e s
De pa rtme nta l a ppropria tion
2
Prior year appropriations
Departmental appropriation 3
s74 Retained revenue rec eipts
4
190
-
100
100
Tota l
6 , 3 12
742
5,232
5,974
Tota l ordina ry a nnua l se rvic e s [A]
De pa rtme nta l non- ope ra ting
Equity injec tions
6 , 3 12
742
5,232
5,974
-
-
-
-
-
-
-
-
6 , 3 12
742
5,232
5,974
Tota l othe r se rvic e s [B]
Tota l a va ila ble a nnua l
a ppropria tions [A+ B]
238
WGEA Budget Statements 2015–16
Table 1.1: WGEA resource statement — Budget estimates for 2015–16 as
at Budget May 2015 (continued)
Proposed at
2015–16
Budget
Total 2015–16
estimate
$'000
Estimate of
prior year
amounts
available in
2015–16
$'000
$'000
$'000
6 , 3 12
742
5,232
5,974
6 , 3 12
742
5,232
5,974
Ac tual
Available
Appropriation
2014–15
Tota l a ppropria tions e xc luding
spe c ia l a c c ounts
Tota l re sourc ing [A+ B+ C+ D]
Less appropriations drawn from
annual or spec ial appropriations
above and c redited to spec ial
ac c ounts
and/or payments to c orporate entities
through annual appropriations
Tota l ne t re sourc ing for
Workpla c e G e nde r Equa lity
Age nc y
-
-
-
-
-
-
-
-
5,232
5,974
6 , 3 12
742
1
Appropriation Bill (No.1) 2015–16.
2
Estimated adjusted balance carried forward from previous year.
3
Includes an amount of $0.197 million 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'.
4
Estimated Retained revenue receipts under section 74 of the PGPA Act.
Reader note: All figures are GST exclusive.
239
WGEA Budget Statements 2015–16
1.3
BUDGET MEASURES
Budget measures in Part 1 relating to the Workplace Gender Equality Agency
are detailed in Budget Paper No. 2 and are summarised below.
Table 1.2: Agency 2015–16 Budget measures
Part 2: MYEFO measures not previously reported in a portfolio statement
Programme 2014–15 2015–16 2016–17 2017–18 2018–19
$'000
$'000
$'000
$'000
$'000
Expense m easures
Communications and Public Affairs
Savings
Departmental expenses
1.1
(18)
(36)
(36)
(36)
(36)
Total
Total expense m easures
Departmental
(18)
(36)
(36)
(36)
(36)
(18)
(36)
(36)
(36)
(36)
Total
(18)
(36)
(36)
(36)
(36)
Prepared on a Government Finance Statistics (fiscal) basis.
240
WGEA Budget Statements 2015–16
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 Workplace Gender Equality Agency in achieving
government outcomes.
Outcome 1: Promote and improve gender equality in Australian
workplaces including through the provision of advice and assistance to
employers and the assessment and measurement of workplace gender
data.
Outcome expense statement
Table 2.1 provides an overview of the total expenses for Outcome 1 by
programme.
241
WGEA Budget Statements 2015–16
Table 2.1: Budgeted expenses for Outcome 1
Outcom e 1: Prom ote and im prove gender equality in
Australian w orkplaces including through the provision of
advice and assistance to em ployers and the assessm ent
and m easurem ent of w orkplace gender data
Program m e 1.1: Workplace Gender Equality
Departmental expenses
Departmental appropriation1
Expenses not requiring appropriation in the Budget year 2
Total for program m e 1.1
Outcom e 1 Totals by appropriation type
Departmental expenses
Departmental appropriation1
Expenses not requiring appropriation in the Budget year 2
Total expenses for Outcom e 1
Average staffing level (num ber)
2014–15
Estimated
actual
expenses
$'000
2015–16
Estimated
expenses
5,198
676
5,035
663
5,874
5,698
5,198
676
5,035
663
5,874
5,698
2014–15
29
2015–16
29
$'000
1
Departmental appropriation combines 'Ordinary annual services (Appropriation Bill No. 1)' and
'Revenue from independent sources (s 74)'.
2
Expenses not requiring appropriation in the Budget year are made up of depreciation expenses,
amortisation expenses, and audit fees.
Note: Departmental appropriation splits and totals are indicative estimates and may change in the
course of the budget year as government priorities change.
242
WGEA Budget Statements 2015–16
Contributions to Outcome 1
Programme 1.1: Workplace Gender Equality
Programme objective
The objective of this programme is to improve gender equality in Australian
workplaces. Gender equality refers to Australian women and men being offered
the same opportunities in the workplace, including equal remuneration and the
ability to balance paid work with caring and family responsibilities.
The programme will focus on promoting and improving gender equality and
outcomes for both women and men in the workplace through activities which
aim to:
 promote amongst employers the elimination of discrimination on the basis of
gender in relation to employment matters foster, workplace consultation
between employers and employees on issues concerning gender equality in
employment and in the workplace
 improve the productivity and competiveness of Australian business through
the advancement of gender equality in employment and in the workplace
 remove barriers to the full and equal participation of women in the
workforce.
Key activities include:
 advising and assisting employers to promote and improve gender equality in
the workplace including providing advice and assistance on the collection
and analysis of workplace data to underpin measures to improve gender
equality outcomes
 undertaking research, educational and other programmes designed to
promote and improve gender equality in the workplace
 promoting and contributing to understanding and acceptance, and public
discussion, of gender equality in the workplace
 reviewing compliance with the Act by relevant employers.
Table 2.1.1 Programme expenses
Programme support
Expenses not requring appropriation in the
Budget year 1
Total program m e expenses
1
2014–15
Estimated
actual
$'000
5,198
676
5,874
2015–16
Budget
2016–17 2017–18 2018–19
Forw ard Forw ard Forw ard
estimate estimate estimate
$'000
$'000
$'000
$'000
5,035
5,053
5,101
5,151
663
5,698
616
5,669
461
5,562
364
5,515
Expenses not requiring appropriation in the Budget year are made up of depreciation expenses,
amortisation expenses, and audit fees.
243
WGEA Budget Statements 2015–16
Programme 1.1 Deliverables
The Agency will support improved workplace gender equality by:
 assisting relevant employers to report to the Agency, through the provision
of:
– a secure online web portal
– education and guidance materials on reporting
– telephone assistance.
 educating employers on improving gender equality outcomes, through the
provision of:
– education and materials on interpreting workplace data and on strategies
for removing barriers to workplace gender equality
– a set of benchmarks that will enable relevant employers to consider and
improve their workplace outcomes and practices over time and in relation
to their peers.
 promoting and contributing to understanding and acceptance, and public
discussion, of gender equality in the Australian workplace, through:
– the recognition of good gender equality performance
– contributions to public discussion of gender equality in the workplace
including through speeches and events
– an improved digital presence.
 using gender equality data to improve workplace gender equality, through:
– making publicly available aggregated benchmark data
– the establishment of a database of reported data to inform the Agency’s
activities and advice to the Minister as required
– the preparation of biennial reports to the Minister on overall progress
achieved in relation to the GEIs, beginning with the two-year period
ending on 31 May 2016.
244
WGEA Budget Statements 2015–16
 fostering compliance with the reporting and transparency provisions of the
Act, through:
– contacting relevant employers who are not meeting their obligations and
assisting them to become compliant
– undertaking reviews of relevant employers’ compliance with the Act
– naming non-compliant employers in a report to the Minister or by
electronic or other means.
245
WGEA Budget Statements 2015–16
Programme 1.1 Deliverables
Table 2.1.1.A Education
Deliverable
Education participants
Educational resources
available on Agency website
Benchmarks developed
Budget
2016–17
Forward
Estimate
2017–18
Forward
Estimate
2018–19
Forward
Estimate
1351
1419
1489
1564
1642
600
66
73
80
88
43
43
43
43
43
2014–15
2015–16
Revised
Budget
Table 2.1.1.B Understanding and acceptance and public discussion
Deliverable
2014–15
2015–16
Revised
Budget
Budget
2016–17
Forward
Estimate
2017–18
Forward
Estimate
2018–19
Forward
Estimate
Speeches and events
delivered
52
52
52
52
52
Employer of choice
organisations
80
88
97
106
117
Table 2.1.1.C Compliance
Deliverable
Employers registered with
the Agency as relevant
employers
Employer reviews
conducted
2014–15
2015–16
Revised
Budget
Budget
2016–17
Forward
Estimate
2017–18
Forward
Estimate
2018–19
Forward
Estimate
11,700
11,759
11,817
11,876
11,936
-
10
11
12
13
2014–15
2015–16
Revised
Budget
Budget
2016–17
Forward
Estimate
2017–18
Forward
Estimate
2018–19
Forward
Estimate
-
-
1
-
1
Table 2.1.1.D Reporting by Agency
Deliverable
Biennial report to the
Minister
246
WGEA Budget Statements 2015–16
Programme 1.1 Key performance indicators
 percentage of women in leadership including governing board members, key
management personnel (KMP) and other managers
 percentage of employers conducting gender remuneration gap analyses
 percentage of employers with a strategy or policy to support employees with
family and caring responsibilities
 number of visits to the Agency website.
Table 2.1.1.E Programme 1.1 Key performance indicators
Key performance
indicators
Budget
2016–17
Forward
Estimate
2017–18
Forward
Estimate
2018–19
Forward
Estimate
23.7%
24.5%
25.3%
26.1%
26.9%
- KMP
26.1%
26.5%
26.9%
27.3%
27.7%
- Other managers
36.8%
38%
39%
40%
41%
24%
25%
25.5%
26%
27%
55.1%
56%
57%
58%
59%
200,000
210,000
220,500
231,525
243,101
2014–15
2015–16
Revised
Budget
- Governing board members
Percentage of women in
leadership roles in relevant
employers
Percentage of relevant
employers that have
conducted gender
remuneration gap analyses
Percentage of relevant
employers with a strategy
or policy to support
employees with family or
caring responsibilities
Number of visits to Agency
website
247
WGEA Budget Statements 2015–16
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
WGEA does not have any administered funds. For this reason Table 3.1.1 is not
presented.
3.1.2 Special accounts
WGEA does not have any special accounts. For this reason Table 3.1.2 is not
presented.
3.1.3 Australian Government Indigenous expenditure
WGEA does not have any Australian Government Indigenous expenditure. For
this reason Table 3.1.3 is not presented.
248
WGEA Budget Statements 2015–16
3.2
BUDGETED FINANCIAL STATEMENTS
3.2.1 Differences in entity resourcing and financial statements
Table 3.2.1 recognises the full year revenue for 2015–16 on the basis of accrual
accounting principles.
3.2.2 Analysis of budgeted financial statements
The Workplace Gender Equality Agency is budgeting for an operating result
equal to the unappropriated depreciation and amortisation expense in 2015–16
and the three forward years.
Total revenues are estimated to be $5 million in 2015–16, and total expenses to
be $5.7 million.
Total assets for 2015–16 are estimated to be $3 million. The majority of the assets
represent receivables (appropriations receivable) and intangibles.
Total liabilities for 2015–16 are estimated to be $1 million. The largest liabilities
are accrued employee entitlements.
249
WGEA Budget Statements 2015–16
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
2014–15
Estimated
actual
$'000
EXPENSES
Employee benefits
Suppliers
Depreciation and amortisation
Finance costs
Total expenses
LESS:
OWN-SOURCE INCOME
Ow n-source revenue
Other
Total ow n-source revenue
Gains
Other
Total gains
Total ow n-source incom e
Net cost of/(contribution by)
services
Revenue from Government
Surplus/(deficit) attributable to the
Australian Governm ent
2015–16
Budget
$'000
2016–17
Forw ard
estimate
$'000
2017–18
Forw ard
estimate
$'000
2018–19
Forw ard
estimate
$'000
3,226
1,992
646
10
3,417
1,638
633
10
3,651
1,392
616
10
3,724
1,367
461
10
3,771
1,370
364
10
5,874
5,698
5,669
5,562
5,515
190
100
100
100
100
190
100
100
100
100
30
30
30
30
30
30
30
30
30
30
220
130
130
130
130
5,654
5,008
5,568
4,935
5,539
4,923
5,432
4,971
5,385
5,021
(646)
(633)
(616)
(461)
(364)
Total com prehensive incom e/(loss)
(646)
(633)
(616)
(461)
(364)
Total com prehensive incom e/(loss)
attributable to the Australian
Governm ent
(646)
(633)
(616)
(461)
(364)
250
WGEA Budget Statements 2015–16
Table 3.2.1: Comprehensive income statement (showing net cost of
services) for the period ended 30 June (continued)
Note: Impact of net cash appropriation arrangements
2014–15
$'000
2015–16
$'000
2016–17
$'000
2017–18
$'000
2018–19
$'000
-
-
-
-
-
646
633
616
461
364
(646)
(633)
(616)
(461)
(364)
Total com prehensive incom e/(loss)
excluding depreciation/am ortisation
expenses previously funded
through revenue appropriations.
less depreciation/amortisation
expenses previously funded through
revenue appropriations 1
Total com prehensive incom e/(loss)
- as per the statem ent of
com prehensive incom e
1
From 2010–11, the government introduced net cash appropriation arrangements where Bill 1
revenue appropriations for the depreciation/amortisation expenses of non-corporate
Commonwealth entities (and select corporate Commonwealth entities) were replaced with a
separate capital budget (the Departmental Capital Budget, or DCB) provided through Bill 1 equity
appropriations. For information regarding DCBs, please refer to Table 3.2.5 Departmental Capital
Budget Statement.
Prepared on Australian Accounting Standards basis.
251
WGEA Budget Statements 2015–16
Table 3.2.2: Budgeted departmental balance sheet (as at 30 June)
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
Assets held for sale
Total assets
LIABILITIES
Payables
Suppliers
Other payables
Total payables
Interest bearing liabilities
Leases
Total interest bearing liabilities
Provisions
Employee provisions
Other provisions
Total provisions
Liabilities included in disposal groups
held for sale
Total liabilities
Net assets
2014–15
Estimated
actual
$'000
2015–16
Budget
$'000
2016–17
Forw ard
estimate
$'000
2017–18
Forw ard
estimate
$'000
2018–19
Forw ard
estimate
$'000
446
494
446
494
446
494
446
494
446
494
940
940
940
940
940
548
198
1,758
2
318
139
1,611
2
88
97
1,462
2
68
1,322
2
48
1,183
2
2,506
-
2,070
-
1,649
-
1,392
-
1,233
-
3,446
3,010
2,589
2,332
2,173
63
491
63
489
63
488
63
488
63
488
554
552
551
551
551
54
54
54
54
54
54
54
54
54
54
379
10
381
10
382
10
382
10
382
10
389
391
392
392
392
-
-
-
-
-
997
997
997
997
997
2,449
2,013
1,592
1,335
1,176
252
WGEA Budget Statements 2015–16
Table 3.2.2: Budgeted departmental balance sheet (as at 30 June)
(continued)
2014–15
Estimated
actual
$'000
2015–16
Budget
$'000
2016–17
Forw ard
estimate
$'000
2017–18
Forw ard
estimate
$'000
2018–19
Forw ard
estimate
$'000
EQUITY*
Parent entity interest
Contributed equity
Reserves
Retained surplus (accumulated
deficit)
3,659
40
3,856
40
4,051
40
4,255
40
4,460
40
(1,250)
(1,883)
(2,499)
(2,960)
(3,324)
Total parent entity interest
2,449
2,013
1,592
1,335
1,176
Total Equity
2,449
2,013
1,592
1,335
1,176
*’Equity’ is the residual interest in assets after deduction of liabilities.
Prepared on Australian Accounting Standards basis.
253
WGEA Budget Statements 2015–16
Table 3.2.3: Departmental statement of changes in equity — summary of
movement (Budget year 2015–16)
Retained
Asset
Other Contributed
earnings revaluation reserves
equity/
reserve
capital
$'000
$'000
$'000
$'000
Opening balance as at 1 July 2015
Balance carried forw ard from previous
period
Adjustment for changes in accounting
policies
Adjusted opening balance
Com prehensive incom e
Surplus/(deficit) for the period
Total comprehensive income
of w hich:
Attributable to the Australian Government
Transactions w ith ow ners
Contributions by owners
Departmental Capital Budget (DCB)
Sub-total transactions with owners
Transfers betw een equity
Transfers betw een equity components
Estim ated closing balance as at 30 June
2016
Less: non-controlling interests
Closing balance attributable to the
Australian Governm ent
(1,250)
40
-
3,659
Total
equity
$'000
2,449
-
-
-
-
-
(1,250)
40
-
3,659
2,449
(633)
-
-
-
(633)
(633)
-
-
-
(633)
(633)
-
-
-
(633)
-
-
-
-
-
-
197
197
197
197
-
-
-
-
(1,883)
-
40
-
-
3,856
-
2,013
-
(1,883)
40
-
3,856
2,013
-
Prepared on Australian Accounting Standards basis.
254
WGEA Budget Statements 2015–16
Table 3.2.4: Budgeted departmental statement of cash flows (for the period
ended 30 June)
2014–15
Estimated
actual
$'000
OPERATING ACTIVITIES
Cash received
Appropriations
Other
2015–16
Budget
$'000
2016–17
Forw ard
estimate
$'000
2017–18
Forw ard
estimate
$'000
2018–19
Forw ard
estimate
$'000
5,452
190
4,925
100
4,913
100
4,961
100
5,011
100
Total cash received
Cash used
Employees
Suppliers
Other
5,642
5,025
5,013
5,061
5,111
3,226
1,962
-
3,415
1,608
2
3,650
1,362
1
3,724
1,337
-
3,771
1,340
-
Total cash used
Net cash from /(used by)
operating activities
INVESTING ACTIVITIES
Cash received
Other
5,188
5,025
5,013
5,061
5,111
454
-
-
-
-
Total cash received
Cash used
Purchase of property, plant and
equipment
Total cash used
Net cash from /(used by)
investing activities
-
-
-
-
-
-
-
-
-
-
190
197
195
204
205
190
197
195
204
205
(190)
(197)
(195)
(204)
(205)
255
WGEA Budget Statements 2015–16
Table 3.2.4: Budgeted departmental statement of cash flows (for the period
ended 30 June) (continued)
2014–15
Estimated
actual
$'000
FINANCING ACTIVITIES
Cash received
Contributed equity
2015–16
Budget
$'000
2016–17
Forw ard
estimate
$'000
2017–18
Forw ard
estimate
$'000
2018–19
Forw ard
estimate
$'000
-
197
195
204
205
Total cash received
Cash used
Other
-
197
195
204
205
-
-
-
-
-
Total cash used
Net cash from /(used by)
financing activities
Net increase/(decrease) in cash
held
Cash and cash equivalents at the
beginning of the reporting period
Cash and cash equivalents at the
end of the reporting period
-
-
-
-
-
-
197
195
204
205
264
-
-
-
-
182
446
446
446
446
446
446
446
446
446
Prepared on Australian Accounting Standards basis.
256
WGEA Budget Statements 2015–16
Table 3.2.5: Departmental capital budget statement (for the period ended
30 June)
2014–15
Estimated
actual
$'000
NEW CAPITAL APPROPRIATIONS
Capital budget - Bill 1 (DCB)
Total new capital appropriations
Provided for:
Purchase of non-financial assets
Total Items
PURCHASE OF NON-FINANCIAL
ASSETS
Funded by capital appropriations 1
Funded by capital appropriation DCB2
2015–16
Budget
$'000
2016–17
Forw ard
estimate
$'000
2017–18
Forw ard
estimate
$'000
2018–19
Forw ard
estimate
$'000
-
197
195
204
205
-
197
195
204
205
-
197
195
204
205
-
197
195
204
205
-
-
-
-
-
190
197
195
204
205
TOTAL
RECONCILIATION OF CASH USED TO
ACQUIRE ASSETS TO ASSET
MOVEMENT TABLE
Total purchases
190
197
195
204
205
190
197
195
204
205
Total cash used to acquire assets
190
197
195
204
205
1
Does not include annual finance lease costs. Include purchases from current and previous years'
Departmental Capital Budgets (DCBs).
2
Includes the following sources of funding:
- current Bill 1 and prior year Act 1/3/5 appropriations (excluding amounts from the DCB)
- donations and contributions
- gifts
- internally developed assets
- s 74 Retained revenue receipts
- proceeds from the sale of assets.
Prepared on Australian Accounting Standards basis.
257
WGEA Budget Statements 2015–16
Table 3.2.6: Statement of asset movements (Budget year 2015–16)
Buildings
$'000
As a t 1 July 2 0 15
Gross
book value
Ac
c umulated
deprec iation/amortisation and
impairment
O pe ning ne t book ba la nc e
Ca pita l a sse t a dditions
Estima te d e xpe nditure on ne w
or re pla c e me nt a sse ts
By purc hase - appropriation ordinary
1
annual servic es
Tota l a dditions
O the r move me nts
Deprec iation/amortisation expense
Tota l othe r move me nts
As a t 3 0 June 2 0 16
Gross book value
Ac c umulated
deprec iation/amortisation and
impairment
Closing ne t book ba la nc e
1
1,149
(601)
548
-
Other property,
plant and
equipment
$'000
401
(203)
19 8
-
Computer
software and
intangibles
$'000
2,838
(1,080)
1, 7 5 8
197
19 7
Total
$'000
4,388
(1,884)
2,504
197
19 7
(230)
(59)
(344)
(633)
(2 3 0 )
(5 9 )
(3 4 4 )
(6 3 3 )
1,149
401
3,035
4,585
(831)
(262)
(1,424)
3 18
13 9
1, 6 11
(2,517)
2,068
"Appropriation ordinary annual services" refers to funding provided through Appropriation Bill
(No.1) 2015–16 for depreciation / amortisation expenses, DCBs or other operational expenses.
Prepared on Australian Accounting Standards basis.
258
WGEA Budget Statements 2015–16
Table 3.2.7: Schedule of budgeted income and expenses administered on
behalf of Government (for the period ended 30 June)
WGEA has no income and expenses administered on behalf of government. For
this reason Table 3.2.7 is not presented.
Table 3.2.8: Schedule of budgeted assets and liabilities administered on
behalf of Government (as at 30 June)
WGEA has no administered assets and liabilities. For this reason Table 3.2.8 is
not presented.
Table 3.2.9: Schedule of budgeted administered cash flows (for the period
ended 30 June)
WGEA has no administered cash flows. For this reason Table 3.2.9 is not
presented.
Table 3.2.10 Administered capital budget statement (for the period ended
30 June)
WGEA has no administered capital purchases. For this reason Table 3.2.10 is not
presented.
Table 3.2.11 Statement of administered asset movements (Budget year
2015–16)
WGEA has no administered non-financial assets. For this reason Table 3.2.11 is
not presented.
3.2.4 Notes to the financial statements
The Agency budget statements have been prepared on an accrual accounting
basis, having regard to the Statement of Accounting Concepts, and in
accordance with:
 The Finance Minister’s Orders
 Australian Accounting Standards and Interpretations issued by the
Australian Accounting Standards Board.
All assets are initially recorded at cost. Property, plant and equipment and
other infrastructure assets are periodically revalued at their fair value.
259
Glossary
PORTFOLIO GLOSSARY
Accrual Accounting
System of accounting where items are brought to account
and included in the financial statements as they are earned or
incurred, rather than as they are received or paid.
Additional Estimates
Where amounts appropriated at Budget time are insufficient,
Parliament may appropriate more funds to portfolios
through the Additional Estimates Acts.
Additional Estimates
Bills or Acts
These are Appropriation Bills 3 and 4, and a separate Bill for
the Parliamentary Departments [Appropriations
(Parliamentary Departments) Bill (No. 2)]. These Bills are
introduced into Parliament sometime after the Budget Bills.
Administered Items
Expenses, revenues, assets or liabilities managed by agencies
on behalf of the Commonwealth. Agencies do not control
administered items. Administered expenses include grants,
subsidies and benefits. In many cases, administered expenses
fund the delivery of third party outputs.
Appropriation
An authorisation by Parliament to spend moneys from the
Consolidated Revenue Fund for a particular purpose.
Annual Appropriation
Two Appropriation Bills are introduced into Parliament in
May and comprise the Budget for the financial year
beginning 1 July. Further Bills are introduced later in the
financial year as part of the additional estimates.
Parliamentary departments have their own appropriations.
Assets
Assets are physical objects and legal rights it is expected will
provide benefits in the future or alternatively items of value
owned by an Agency.
Budget Measure
A decision by Cabinet or Ministers and has resulted in a cost
or savings to outlays.
Capital expenditure
Expenditure by an agency on capital projects, for example
purchasing a building.
Consolidated Revenue
Fund
Section 81 of the Constitution stipulates that all revenue
raised or money received by the Commonwealth forms the
one consolidated revenue fund (CRF). The CRF is not a bank
account. The Official Public Account reflects most of the
operations of the CRF.
Departmental items
Assets, liabilities, revenues and expenses that are controlled
by the agency in providing its outputs. Departmental items
would generally include computers, plant and equipment
assets used by agencies in providing goods and services and
most employee expenses, supplier costs and other
administrative expenses incurred.
261
Glossary
Depreciation
Apportionment of an asset’s capital value as an expense over
its estimated useful life to take account of normal usage,
obsolescence, or the passage of time.
Effectiveness indicators
Measures the joint or independent contribution of outputs
and administered items to the achievement of their specified
outcome.
Equity or net assets
Residual interest in the assets of an entity after deduction of
its liabilities.
Expenses
Total value of all of the resources consumed in producing
goods and services or the loss of future economic benefits in
the form of reductions in assets or increases in liabilities of an
entity.
Fair value
Valuation methodology: The amount for which an asset
could be exchanged or a liability settled, between
knowledgeable and willing parties in an arm’s length
transaction. The fair value can be affected by the conditions
of the sale, market conditions and the intentions of the asset
holder.
Financial Management and
Accountability (FMA) Act
1997
The FMA Act was replaced by the Public Governance,
Performance and Accountability Act 2013 on 1 July 2014.
Forward estimates
A system of rolling three year financial estimates. After the
budget is passed, the first year of the forward estimates
becomes the base for the next year’s budget bid, and another
out-year is added to the forward estimates.
Liabilities
Liabilities represent amounts owing on goods or services that
have been received but not yet paid for. A liability shows the
future commitment of the Agency’s assets.
Net annotated
appropriation (Section 74
Receipts)
Section 74 receipts, also known as net annotated
appropriations, are a form of appropriation which allows a
department access to certain money it receives in payment of
services. These monies are known as Section 74 Receipts,
reflecting their authority under Section 74 of the PGPA Act.
Operating result
Equals revenue less expenses.
Outcomes
The government's objectives in each portfolio area. Outcomes
are desired results, impacts or consequences for the
Australian community as influenced by the actions of the
Australian Government. Actual outcomes are assessments of
the end-results or impacts actually achieved.
Public Governance,
Performance and
Accountability Act 2013
PGPA Act)
The PGPA Act replaced the Financial Management and
Accountability Act 1997 (FMA Act) and the Commonwealth
Authorities and Companies Act 1997 (CAC Act) on 1 July 2014.
As the primary piece of Commonwealth resource
management legislation, the PGPA Act establishes a coherent
262
Glossary
system of governance and accountability for public
resources, with an emphasis on planning, performance and
reporting. The Act applies to all Commonwealth entities and
Commonwealth companies.
Portfolio Budget
Statements
Statements prepared by portfolios to explain the budget
appropriations in terms of outcomes.
Receipts
The total or gross amount received by the Australian
Government. Each receipt item is either revenue, an offset
within outlays, or a financing transaction. Receipts include
taxes, interest, charges for goods and services, borrowings
and Government Business Enterprise (GBE) dividends
received.
Revenue
Total value of resources earned or received to cover the
production of goods and services.
Section 74 Receipts
See net annotated appropriation.
Special Account
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).
Special Appropriations
(including Standing
Appropriations)
An amount of money appropriated by a particular Act of
Parliament for a specific purpose and number of years. For
special appropriations the authority to withdraw funds from
the Consolidated Revenue Fund does not generally cease at
the end of the financial year. Standing appropriations are a
sub-category consisting of ongoing special appropriations —
the amount appropriated will depend on circumstances
specified in the legislation.
263