employment portfolio · the purpose of the 2015–16 portfolio budget statements (pb statements) is...

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

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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

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iv

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nfp not for publication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.

USER GUIDE TO THE

PORTFOLIO BUDGET

STATEMENTS

vi

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.

1

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

PORTFOLIO OVERVIEW

Portfolio overview

5

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.

Portfolio overview

6

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


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 asbestos-related 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.

Portfolio overview

7

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.

Portfolio overview

8

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

Bill No. 1

($m)

Appropriation

Bill No. 2

($m)

Special

appropriation

($m)

Receipts

($m)

Total

($m)


Administered appropriations 1,544.4 - 443.1 - 1,987.5

Departmental appropriations 312.9 9.3 - 17.7 340.0

Total: 2,327.5

Asbestos Safety and

Eradication Agency

Administered appropriations - - - - -

Departmental appropriations 3.3 - - - 3.3

Total: 3.3

Comcare, The Safety

Rehabilitation and

Compensation Commission,

and the Seafarers Safety,

Rehabilitation and

Compensation Authority


Departmental appropriations 7.7 - 0.1 584.2 592.1

Total: 592.1


Administered appropriations - - 0.5 - 0.5

Departmental appropriations 82.0 - - 2.4 84.4

Total: 84.9

Office of the Fair Work

Building Industy

Inspectorate



Total: 35.2

Fair Work Ombudsman

Administered appropriations - - 0.2 - 0.2


Total: 118.9

Portfolio overview

9

Table 1: Portfolio resources 2015–16 (continued)

Appropriation

Bill No. 1

($m)

Appropriation

Bill No. 2

($m)

Special

appropriation

($m)

Receipts

($m)

Total

($m)

Safe Work Australia


Departmental appropriations 9.7 - 11.0 - 20.7

Total: 20.7

Workplace Gender Equality

Agency



Total: 5.2

Portfolio total 3,187.8

Less amounts transferred

w ithin portfolio - - - - -

3,187.8Resources available w ithin portfolio:

11

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


Entity resources and planned performance

15

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

Department of Employment Budget Statements 2015–16

17

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


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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.


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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

Actual

Available

Appropriation

2014–15

$'000

Estimate of

prior year

amounts

available in

2015–16

$'000

Proposed at

2015–16

Budget

$'000

Total 2015–16

estimate

$'000

Ordina ry a nnua l se rvic e s1

De pa rtme nta l a ppropria tion

Prior year appropriations2

68,622 66,426 - 66,426

Departmental appropriation3

327,013 - 312,944 312,944

s74 Retained revenue receipts4

20,182 - 17,713 17,713

Tota l 4 15 ,8 17 6 6 ,4 2 6 3 3 0 ,6 5 7 3 9 7 ,0 8 3

Administe re d e xpe nse s

Outcome 1 1,435,833 - 1,523,012 1,523,012

Outcome 2 27,960 - 21,035 21,035

Payments to corporate entities5

7,563 - 7,727 7,727

Tota l 1,4 7 1,3 5 6 - 1,5 5 1,7 7 4 1,5 5 1,7 7 4

Tota l ordina ry a nnua l se rvic e s [A] 1,8 8 7 ,17 3 6 6 ,4 2 6 1,8 8 2 ,4 3 1 1,9 4 8 ,8 5 7

Othe r se rvic e s6

De pa rtme nta l non- ope ra ting


2,127 - - -

Equity injections 23,987 - 9,333 9,333

Tota l 2 6 ,114 - 9 ,3 3 3 9 ,3 3 3

Tota l othe r se rvic e s [B] 2 6 ,114 - 9 ,3 3 3 9 ,3 3 3

Tota l a va ila ble a nnua l

a ppropria tions [A+B] 1,9 13 ,2 8 7 6 6 ,4 2 6 1,8 9 1,7 6 4 1,9 5 8 ,19 0


20

Table 1.1 Department of Employment Resource Statement – Budget Estimates for 2015–16 as at Budget May 2015 (continued)

Actual

Available

Appropriation

2014–15

$'000

Estimate of

prior year

amounts

available in

2015–16

$'000

Proposed at

2015–16

Budget

$'000

Total 2015–16

estimate

$'000

Spe c ia l a ppropria tions

Spe c ia l a ppropria tions limite d by

c rite ria /e ntitle me nt

Public Governance, Performance

and Accountability Act 2013 - s777

44 - 30 30

Coal Mining Industry (Long Service

Leave Funding) Act 1992 174,618 - 174,618 174,618

Safety, Rehabilitation and

Compensation Act 1988 50,069 - 36,515 36,515

Asbestos- related Claims

(Management of Commonwealth

Liabilities) Act 2005 22,887 - 33,211 33,211

Fair Entitlements Guarantee Act 2012 263,505 - 198,768 198,768

Tota l spe c ia l a ppropria tions [C] 5 11,12 3 - 4 4 3 ,14 2 4 4 3 ,14 2

Tota l a ppropria tions e xc luding

spe c ia l a c c ounts 2,424,410 66,426 2,334,906 2,401,332

Spe c ia l a c c ounts

Opening balance8

- - - -

Tota l spe c ia l a c c ounts [D] - - - -

Tota l re sourc ing [A+B+C+D] 2 ,4 2 4 ,4 10 6 6 ,4 2 6 2 ,3 3 4 ,9 0 6 2 ,4 0 1,3 3 2

Less payments to corporate entities

through annual appropriations (7,563) - (7,727) (7,727)

Tota l ne t re sourc ing for

De pa rtme nt of Employme nt 2 ,4 16 ,8 4 7 6 6 ,4 2 6 2 ,3 2 7 ,17 9 2 ,3 9 3 ,6 0 5

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.


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.


21

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

2014–15

$'000

2015–16

$'000

Payments made by other entities on behalf of the Department of Employment

(disclosed above) - 32,885

Receipts received from other entities for the provision of services

(disclosed above in s74 Retained revenue receipts section above) 20,182 17,713

Payments made to corporate entities within the Portfolio

Comcare

Annual Appropriation Bill 1 - Outcome 2 (7,563) (7,727)


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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)

Programme2014–15

$'000

2015–16

$'000

2016–17

$'000

2017–18

$'000

2018–19

$'000

Expense measures

Beacon Foundation - grant funding 1.1

Administered expenses - - - - -

Departmental expenses - - - - -

Total - - - - -

Employment Services - Changes to

Service Fees and Cessation of

Personal Contact Interview s 1.1

Administered expenses (45,754) - - - -


Total (45,754) - - - -

Geelong Employment Facilitator -

extension 1.1

Administered expenses (1,300) 750 550 - -


Total (1,300) 750 550 - -

Grow ing Jobs and Small Business -

engaging early school leavers 1.1

Administered expenses - 1,296 2,593 2,694 2,795

Departmental expenses - 16 - - -

Total - 1,312 2,593 2,694 2,795


further strengthening the job seeker

compliance arrangements 1.1

Administered expenses - 11 - 100 -

Departmental expenses - 379 70 - -

Total - 390 70 100 -

Grow ing Jobs and Small Business

Package - National Work Experience

Programme 1.1

Administered expenses - - - 338 -

Departmental expenses - 3,197 4,015 4,315 3,558

Total - 3,197 4,015 4,653 3,558


23

Table 1.2: Entity 2015–16 Budget measures Part 1: Measures announced since the 2014–15 Mid-Year Economic and Fiscal Outlook (MYEFO) (continued)

Programme2014–15

$'000

2015–16

$'000

2016–17

$'000

2017–18

$'000

2018–19

$'000


w age subsidies - redesign 1.1

Administered expenses (70) (103,347) (20,950) 57,556 66,403


Total (70) (103,331) (20,950) 57,556 66,403


Youth Employment Strategy -

intensive support - transition to w ork 1.1



Total - 21,982 60,830 63,557 61,155



intensive support for vulnerable job

seekers 1.1



Total - 15,497 27,561 27,888 12,548


Youth Employment Strategy - revised

w aiting period for youth income

support 1.1

Administered expenses - - - - -


Total - 42 - - -

Norfolk Island Reform1 1.1

Administered expenses - - 375 276 277


Total - 128 375 276 277

Strengthening the Integrity of Welfare

Payments2 1.1

Administered expenses - - - 2,381 9,081


Total - - - 2,381 9,081


24


Programme2014–15

$'000

2015–16

$'000

2016–17

$'000

2017–18

$'000

2018–19

$'000

Fair Entitlements Guarantee -

recovery programme - trial 2.1

Administered expenses - 4,975 5,055 - -

Departmental expenses - 692 736 - -

Total - 5,667 5,791 - -

Total expense measures

Administered (47,124) (70,151) 71,831 150,618 148,484

Departmental - 15,785 9,004 8,487 7,333

Total (47,124) (54,366) 80,835 159,105 155,817

Capital measures

Disability Employment - a better w ay

to w ork3 1.1

Administered capital - - - - -

Departmental capital - 111 - - -

Total - 111 - - -


engaging early school leavers 1.1



Total - 295 - - -


further strengthening the job seeker

compliance arrangements 1.1



Total - 358 - - -

Grow ing Jobs and Small Business

Package - National Work Experience

Programme 1.1



Total - 52 - - -


25


Programme2014–15

$'000

2015–16

$'000

2016–17

$'000

2017–18

$'000

2018–19

$'000


w age subsidies - redesign 1.1



Total - 313 - - -



intensive support for vulnerable job

seekers 1.1


Departmental capital - 4,447 - - -

Total - 4,447 - - -


Youth Employment Strategy - revised

w aiting period for youth income

support 1.1



Total - 798 - - -

Norfolk Island Reform1 1.1



Total - 65 - - -

Total capital measures

Administered - - - - -

Departmental - 6,439 - - -

Total - 6,439 - - - 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.


26

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


27

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

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.

2014–15

Estimated

actual

expenses

$'000

2015–16

Estimated

expenses

$'000

Programme 1.1: Employment Services

Administered expenses

Ordinary annual services (Appropriation Bill No. 1) 1,435,833 1,523,012

Total for programme 1.1 1,435,833 1,523,012

Outcome 1 Totals by appropriation type


Ordinary annual services (Appropriation Bill No. 1) 1,435,833 1,523,012

Departmental expenses

Departmental appropriation1 254,739 262,768

Expenses not requiring appropriation in the Budget year2 26,638 29,760

Total expenses for Outcome 1 1,717,210 1,815,540

2014-15 2015-16

Average staffing level (number) 1,212 1,294

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.


28

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


29

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


30

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.


31

Table 2.1.1 Budgeted expenses for Programme 1.1

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:

jobactive 6,756 1,459,566 1,778,210 1,772,123 1,793,512

Job Services Australia 1,423,988 - - - -

Job Commitment Bonus 10 32,885 62,483 64,718 64,379

Intensive Support for Vulnerable

Job Seekers - 12,466 27,309 31,553 17,602

Transition to Work - 13,545 59,290 62,006 60,000

Seasonal Worker Programme 1,259 1,277 1,705 1,732 1,759

Mature Age Employment 3,820 3,273 3,335 3,388 3,442

Total programme expenses 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.


32

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

2014–15

Revised

budget

2015–16

Budget

2016–17

Forward

Estimate

2017–18

Forward

Estimate

2018–19

Forward

Estimate

Count of job

placements

-1 380,000 380,000 380,000 380,000

Proportion of job

placements sustained to

four weeks2

- 68% 68% 68% 68%

Proportion of job


12 weeks2

- 44% 44% 44% 44%

Proportion of job


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

2014–15

Revised

budget

2015–16

Budget

2016–17

Forward

Estimate

2017–18

Forward

Estimate

2018–19

Forward

Estimate

Proportion of job

seekers moving off

income support, or

with reduced reliance

on income support, six

months after

participation in

jobactive

- 40% 40% 40% 40%


33

Table 2.1.1.C Overall programme summary

Performance

measure

2014–15

Revised

budget

2015–16

Budget

2016–17

Forward

Estimate

2017–18

Forward

Estimate

2018–19

Forward

Estimate

Cost per

employment

outcome1

- $2500 $2500 $2500 $2500

1 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

80%


34

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


35

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.


36



Table 2.2 Budgeted expenses and resources for Outcome 2

Outcome 2: Facilitate jobs growth through policies that

promote fair, productive and safe workplaces.

2014–15

Estimated

actual

expenses

$'000

2015–16

Estimated

expenses

$'000

Programme 2.1: Employee Assistance


Ordinary annual services (Appropriation Bill No. 1) 13,317 6,025

Special appropriations 438,123 373,386

Total for programme 2.1 451,440 379,411

Programme 2.2: Workplace Assistance




Programme 2.3: Workers Compensation Payments












Total expenses for Outcome 2 611,697 517,657

2014-15 2015-16

Average staffing level (number) 483 497 1 Departmental appropriation combines 'Ordinary annual services (Appropriation Bill No. 1)' and

'Revenue from independent sources (s 74)'.




37


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.


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


General Employee Entitlements and

Redundancy Scheme 12,817 - - - -

Fair Entitlements Guarantee 500 6,025 6,805 1,750 1,750

Special appropriations:

Coal Mining Industry (LSL) Act

1992 174,618 174,618 174,618 174,618 174,618

Fair Entitlements Guarantee Act 2012 263,505 198,768 199,264 195,532 195,532

Total programme expenses 451,440 379,411 380,687 371,900 371,900


38

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.


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


International Labour Organization

Subscription 9,948 10,277 10,594 10,620 10,652

Protected Action Ballots Scheme 1,600 1,600 1,600 1,600 1,600

Centre for Workplace Leadership 3,095 3,133 - - -



39

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.


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


Comcare 7,563 7,727 6,194 6,235 6,279


Asbestos-related Claims Act 2005 22,887 33,211 32,574 34,472 35,849

Safety, Rehabilitation & Compensation

Act 1998 50,069 36,515 35,312 34,109 32,614



40

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

December quarter 2013


Comments

Productivity growth as measured by output per hour worked in the market sector (annual, trend terms)

1.9% 0.3% 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.

ABS Wage Price Index (annual, seasonal adjusted terms)

2.6% 2.5% 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



Comments

Working days lost per thousand employees (annual WDL/1000E)

12.6 6.8 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.


41

Table 2.2.C Enterprise bargaining is used by employers and employees to negotiate pay and conditions

Performance measure



Comments

Number of enterprise agreements under the Fair Work Act 2009 that have not passed their nominal expiry date

23,243 agreements covering an

estimated 2.61 million employees

(current as at 31 December

2013)

18,936 agreements covering an

estimated 2.40 million employees

(current as at 31 December

2014)

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


42

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.


43

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

80%

FEG - Timeliness of processing claims - average processing time for all claims2

14 weeks

FEG - Accuracy – less than 5% of claim decisions are incorrect 3 <5%

FEG - Stakeholder satisfaction – Claimants are satisfied with the Department’s administration of the Fair Entitlements Guarantee4

80%

FEG - Stakeholder satisfaction – Insolvency practitioners are satisfied with the Department’s administration of the Fair Entitlements Guarantee

80%

Building Code - Timeliness of departmental responses to client requests for assessment of industrial instruments against the code and guidelines

95% completed within 10 working

days

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

Effective or above

Scheme - timeliness of responding to initial applications for accreditation5

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.


44

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

2014–15

$'000

2015–16

$'000

2016–17

$'000

2017–18

$'000

2018–19

$'000

Outcome 1:

Programme 1.1

Employment Services (2,155) 538 539 539 539

Total movement of

administered funds (2,155) 538 539 539 539

1 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.


45

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.


46

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

2015–16

Budget

$'000

2016–17

Forw ard

estimate

$'000

2017–18

Forw ard

estimate

$'000

2018–19

Forw ard

estimate

$'000

EXPENSES

Employee benefits 221,467 218,026 217,168 217,346 216,753

Suppliers 95,164 86,213 76,902 78,677 79,579

Depreciation and amortisation 30,490 34,072 32,429 30,906 29,876

Total expenses 347,121 338,311 326,499 326,929 326,208

LESS:

OWN-SOURCE INCOME

Own-source revenue

Sale of goods and rendering of services 20,182 17,713 17,713 17,713 17,713

Other revenue 460 460 460 460 460

Total own-source revenue 20,642 18,173 18,173 18,173 18,173

Gains

Other gains - - - - -

Total gains - - - - -

Total own-source income 20,642 18,173 18,173 18,173 18,173

Net cost of/(contribution by)

services 326,479 320,138 308,326 308,756 308,035

Revenue from Government 295,989 286,066 275,897 277,850 278,159

Surplus/(deficit) attributable to the

Australian Government (30,490) (34,072) (32,429) (30,906) (29,876)

OTHER COMPREHENSIVE INCOME

Changes in asset revaluation surplus - - - - -

Total other comprehensive income - - - - -

Total comprehensive income/(loss) (30,490) (34,072) (32,429) (30,906) (29,876)

Total comprehensive income/(loss)

attributable to the Australian

Government (30,490) (34,072) (32,429) (30,906) (29,876)


47

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


excluding depreciation/amortisation

expenses previously funded

through revenue appropriations.- - - - -

less depreciation/amortisation

expenses previously funded through

revenue appropriations130,490 34,072 32,429 30,906 29,876


- as per the statement of

comprehensive income(30,490) (34,072) (32,429) (30,906) (29,876)

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.


48

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

ASSETS

Financial assets

Cash and cash equivalents 2,768 2,768 2,768 2,768 2,768

Trade and other receivables 72,032 71,568 71,213 71,848 72,521

Total financial assets 74,800 74,336 73,981 74,616 75,289

Non-financial assets

Land and buildings 21,344 20,173 18,124 17,871 16,278

Property, plant and equipment 13,770 15,580 14,123 13,826 13,602

Intangibles 63,537 65,037 63,478 60,406 59,818

Other non-financial assets 10,252 10,252 10,252 10,252 10,252

Total non-financial assets 108,903 111,042 105,977 102,355 99,950

Assets held for sale - - - - -

Total assets 183,703 185,378 179,958 176,971 175,239

LIABILITIES

Payables

Suppliers 6,146 6,146 6,146 6,146 6,146

Other payables 11,690 11,690 11,690 11,690 11,690

Total payables 17,836 17,836 17,836 17,836 17,836

Provisions

Employee provisions 65,592 65,128 64,773 65,408 66,081

Other provisions 1,315 1,315 1,315 1,315 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


49

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 151,515 187,726 215,090 242,374 269,845

Reserves 3,376 3,376 3,376 3,376 3,376

Retained surplus (accumulated

deficit) (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.



50

Table 3.2.3: Departmental statement of changes in equity — summary of movement (Budget year 2015–16)

Retained

earnings

$'000

Asset

revaluation

reserve

$'000

Contributed

equity/

capital

$'000

Total

equity

$'000

Opening balance as at 1 July 2015

Balance carried forw ard from previous

period (55,931) 3,376 151,515 98,960

Adjustment for changes in accounting

policies - - - -

Adjusted opening balance (55,931) 3,376 151,515 98,960

Comprehensive income

Other comprehensive income - - - -

Surplus/(deficit) for the period (34,072) - - (34,072)

Total comprehensive income (34,072) - - (34,072)

of w hich:

Attributable to the Australian

Government (34,072) - - (34,072)

Transactions with owners

Contributions by owners

Equity Injection - Appropriation - - 9,333 9,333

Departmental Capital Budget (DCB) - - 26,878 26,878

Sub-total transactions with owners - - 36,211 36,211

Transfers betw een equity components - - - -

Estimated closing balance as at

30 June 2016 (90,003) 3,376 187,726 101,099

Less: non-controlling interests - - - -

Closing balance attributable to the

Australian Government (90,003) 3,376 187,726 101,099



51

Table 3.2.4: Budgeted departmental statement of cash flows (for the period ended 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

OPERATING ACTIVITIES

Cash received

Appropriations 292,803 286,530 276,252 277,215 277,486

Sale of goods and rendering of

services 22,996 17,923 17,923 17,923 17,923

Net GST received 9,236 7,354 7,078 7,330 7,557

Total cash received 325,035 311,807 301,253 302,468 302,966

Cash used

Employees 227,039 218,490 217,523 216,711 216,080

Suppliers 100,897 93,317 83,730 85,757 86,886

Total cash used 327,936 311,807 301,253 302,468 302,966

Net cash from/(used by)

operating activities (2,901) - - - -

INVESTING ACTIVITIES

Cash received

Proceeds from sales of property,

plant and equipment - - - - -

Total cash received - - - - -

Cash used

Purchase of property, plant and

equipment 55,011 36,211 27,364 27,284 27,471

Total cash used 55,011 36,211 27,364 27,284 27,471


investing activities (55,011) (36,211) (27,364) (27,284) (27,471)


52

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

$'000

2016–17

Forw ard

estimate

$'000

2017–18

Forw ard

estimate

$'000

2018–19

Forw ard

estimate

$'000

FINANCING ACTIVITIES

Cash received



Cash used

Other - - - - -

Total cash used - - - - -


financing activities 55,011 36,211 27,364 27,284 27,471

Net increase/(decrease) in cash

held (2,901) - - - -

Cash and cash equivalents at the

beginning of the reporting period 5,669 2,768 2,768 2,768 2,768


end of the reporting period 2,768 2,768 2,768 2,768 2,768



53

Table 3.2.5: Departmental capital budget statement (for the period ended 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

NEW CAPITAL APPROPRIATIONS

Capital budget - Bill 1 (DCB) 31,024 26,878 27,364 27,284 27,471

Equity injections - Bill 2 23,987 9,333 - - -

Total new capital appropriations 55,011 36,211 27,364 27,284 27,471

Provided for:

Purchase of non-financial assets 55,011 36,211 27,364 27,284 27,471

Total Items 55,011 36,211 27,364 27,284 27,471

PURCHASE OF NON-FINANCIAL

ASSETS

Funded by capital appropriations1 23,987 9,333 - - -

Funded by capital appropriation -

DCB2 31,024 26,878 27,364 27,284 27,471

TOTAL 55,011 36,211 27,364 27,284 27,471

RECONCILIATION OF CASH USED TO

ACQUIRE ASSETS TO ASSET

MOVEMENT TABLE

Total purchases 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).



54

Table 3.2.6: Statement of asset movements (Budget year 2015–16)

Buildings

$'000

Other property,

plant and

equipment

$'000

Computer

software and

intangibles

$'000

Total

$'000

As a t 1 July 2 0 15

Gross book value 29,401 26,992 128,695 185,088

Accumulated

depreciation/amortisation and

impairment (8,057) (13,222) (65,158) (86,437)

Ope ning ne t book ba la nc e 2 1,3 4 4 13 ,7 7 0 6 3 ,5 3 7 9 8 ,6 5 1

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 purchase - appropriation equity1

6,156 6,990 23,065 36,211

Tota l a dditions 6 ,15 6 6 ,9 9 0 2 3 ,0 6 5 3 6 ,2 11

Othe r move me nts

Depreciation/amortisation expense (7,327) (5,180) (21,565) (34,072)

Tota l othe r move me nts (7 ,3 2 7 ) (5 ,18 0 ) (2 1,5 6 5 ) (3 4 ,0 7 2 )

As a t 3 0 June 2 0 16

Gross book value 35,557 33,982 151,760 221,299

Accumulated


impairment (15,384) (18,402) (86,723) (120,509)

Closing ne t book ba la nc e 2 0 ,17 3 15 ,5 8 0 6 5 ,0 3 7 10 0 ,7 9 0

1 "Appropriation equity" refers to equity injections appropriations provided through Appropriation Bill (No. 2) 2015-16, including CDABs.



55

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

$'000

2016–17

Forw ard

estimate

$'000

2017–18

Forw ard

estimate

$'000

2018–19

Forw ard

estimate

$'000

EXPENSES

Suppliers 1,454,643 1,313,745 1,502,418 1,451,964 1,472,854

Subsidies 174,618 305,930 489,714 533,862 529,499

Personal benefits 269,560 284,525 315,481 316,214 317,443

Grants 76,051 82,959 85,486 86,181 73,513

Payments to corporate entities 7,563 7,727 6,194 6,235 6,279

Total expenses administered on

behalf of Government 1,982,435 1,994,886 2,399,293 2,394,456 2,399,588

LESS:

OWN-SOURCE INCOME

Own-source revenue

Taxation revenue

Other taxes 174,618 174,618 174,618 174,618 174,618

Total taxation revenue 174,618 174,618 174,618 174,618 174,618

Non-taxation revenue

Other revenue 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 own-source revenue

administered on behalf of

Government 193,299 193,313 193,313 193,313 193,313

Gains


Total gains administered on behalf

of Government - - - - -

Total own-sourced income


Government 193,299 193,313 193,313 193,313 193,313


services 1,789,136 1,801,573 2,205,980 2,201,143 2,206,275

Surplus (deficit) (1,789,136) (1,801,573) (2,205,980) (2,201,143) (2,206,275)




Total comprehensive income/(loss) (1,789,136) (1,801,573) (2,205,980) (2,201,143) (2,206,275)



56

Table 3.2.8: Schedule of budgeted assets and liabilities administered on behalf of Government (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

ASSETS

Financial assets

Taxation receivables 13,207 13,207 13,207 13,207 13,207


Investments accounted for using

the equity method 145,477 145,477 145,477 145,477 145,477






Total assets administered on

behalf of Government 173,793 174,110 174,110 174,136 174,142

LIABILITIES

Payables

Suppliers 21,642 21,642 21,642 21,642 21,642

Subsidies 14,810 14,810 14,810 14,810 14,810


Grants 459 459 459 459 459

Other payables 2,791,026 2,779,135 2,772,281 2,765,073 2,758,699

Total payables 2,837,378 2,825,487 2,818,633 2,811,425 2,805,051


57

Table 3.2.8: Schedule of budgeted assets and liabilities administered on behalf of Government (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

Provisions

Employee provisions - - - - -

Other provisions - - - - -

Total provisions - - - - -

Total liabilities administered on

behalf of Government 2,837,378 2,825,487 2,818,633 2,811,425 2,805,051

Net assets/(liabilities) (2,663,585) (2,651,377) (2,644,523) (2,637,289) (2,630,909)



58

Table 3.2.9: Schedule of budgeted administered cash flows (for the period ended 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


Cash received

Taxes 174,618 174,618 174,618 174,618 174,618

Net GST received 150,000 160,000 180,000 170,000 180,000

Other 18,681 18,695 18,695 18,695 18,695


Cash used

Grant 76,051 82,959 85,486 86,181 73,513

Subsidies paid 174,618 305,930 489,714 533,862 529,499


Suppliers 1,604,655 1,474,062 1,682,418 1,621,990 1,652,860

Payments to corporate entities 7,563 7,727 6,194 6,235 6,279

Total cash used 2,132,447 2,155,203 2,579,293 2,564,482 2,579,594


operating activities (1,789,148) (1,801,890) (2,205,980) (2,201,169) (2,206,281)


59

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 - - - - -


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.

Asbestos Safety and Eradication Agency


63

ASBESTOS SAFETY AND ERADICATION AGENCY





Section 3: Explanatory tables and budgeted financial statements ........................ 72

3.1 Explanatory tables........................................................................................... 72

3.2 Budgeted financial statements ........................................................................ 73

ASEA Budget Statements 2015–16

65

ASBESTOS SAFETY AND ERADICATION AGENCY

Section 1: Entity Overview and Resources


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.


66


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

Actual

Available

Appropriation

2014–15

$'000

Estimate of

prior year

amounts

available in

2015–16

$'000

Proposed at

2015–16

Budget

$'000

Total 2015–16

estimate

$'000




5,068 5,935 - 5,935

Departmental appropriation 4,914 - 3,264 3,264

Tota l 9 ,9 8 2 5 ,9 3 5 3 ,2 6 4 9 ,19 9

Tota l ordina ry a nnua l se rvic e s [A] 9 ,9 8 2 5 ,9 3 5 3 ,2 6 4 9 ,19 9

Othe r se rvic e s3



- - - -

Equity injections - - - -

Tota l - - - -

Tota l othe r se rvic e s [B] - - - -


a ppropria tions [A+B] 9 ,9 8 2 5 ,9 3 5 3 ,2 6 4 9 ,19 9



c rite ria /e ntitle me nt - - - -

Tota l spe c ia l a ppropria tions [C] - - - -


spe c ia l a c c ounts - - - -


Opening balance - - - -


Tota l re sourc ing [A+B+C+D] 9 ,9 8 2 5 ,9 3 5 3 ,2 6 4 9 ,19 9

Less appropriations drawn from

annual or special appropriations

above and credited to special

accounts - - - -


Asbe stos Sa fe ty a nd Era dic a tion

Age nc y 9 ,9 8 2 5 ,9 3 5 3 ,2 6 4 9 ,19 9

1 Appropriation Bill (No.1) 2014–15

2 Estimated adjusted balance carried forward from previous year

3 Appropriation Bill (No.2) 2014–15



67

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.


68



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.


69

Outcome Expense Statement

Table 2.1 provides an overview of the total expenses for Outcome 1, by programme.

Table 2.1: Budgeted Expenses for Outcome 1

Outcome 1: 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

2014–15

Estimated

actual

expenses

$'000

2015–16

Estimated

expenses

$'000

Programme 1.1: Asbestos Safety and Eradication Agency




2014–15 2015–16

Average staffing level (number) 9 12




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.


70

Programme Expenses

Table 2.1.1 Programme 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

Annual departmental expenses:

Annual Appropriation 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. Awareness: Increase public awareness of the health risks posed by working with or being exposed to asbestos.

2. Best practice: Identify and share best practice in asbestos management, education, handling, storage and disposal.

3. Identification: Improve the identification and grading of asbestos and sharing of information regarding the location of asbestos-containing materials (ACMs).

4. 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.

5. Research: Commission, monitor and promote research into asbestos exposure pathways, prevention and asbestos-related diseases to inform policy options.

6. International leadership: Australia to continue to play a leadership role in a global campaign for a worldwide asbestos ban.


71

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

Identify targeted and

practical initiatives to reduce

the risks of asbestos-related

disease in Australia.

Identified initiatives demonstrate reduction in

asbestos exposure risks


72

Section 3: Explanatory Tables and Budgeted Financial Statements



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.


ASEA has no Australian Government Indigenous expenditure. For this reason

Table 3.1.3 is not presented.


73


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.


74

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

2015–16

Budget

$'000

2016–17

Forw ard

estimate

$'000

2017–18

Forw ard

estimate

$'000

2018–19

Forw ard

estimate

$'000

EXPENSES


Suppliers 3,633 2,014 1,370 1,377 409

Total expenses 4,914 3,264 2,614 2,633 1,665

LESS:

OWN-SOURCE INCOME

Own-source revenue

Other revenue - - - - -

Total own-source revenue - - - - -

Gains


Total gains - - - - -

Total own-source income - - - - -


services 4,914 3,264 2,614 2,633 1,665



Australian Government - - - - -




Total comprehensive income/(loss) - - - - -



Government - - - - -



75


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

ASSETS

Financial assets

Cash and cash equivalents 846 846 846 846 846




Property, plant and equipment - - 59 119 179

Total non-financial assets - - 59 119 179


Total assets 5,935 5,958 6,036 6,116 6,176

LIABILITIES

Payables

Other payables 2,198 2,198 2,198 2,198 2,198

Total payables 2,198 2,198 2,198 2,198 2,198

Provisions

Employee provisions 48 71 90 110 110

Total provisions 48 71 90 110 110


Net assets 3,689 3,689 3,748 3,808 3,868

EQUITY*


Contributed equity 183 183 242 302 362


deficit) 3,506 3,506 3,506 3,506 3,506


Total Equity 3,689 3,689 3,748 3,808 3,868

* 'Equity' is the residual interest in assets after deduction of liabilities.



76

Table 3.2.3: Departmental statement of changes in equity—summary of

movement (Budget Year 2015–16)

Retained

earnings

$'000

Asset

revaluation

reserve

$'000

Contributed

equity/

capital

$'000

Total

equity

$'000



period 3,506 - 183 3,689


policies - - - -

Adjusted opening balance 3,506 - 183 3,689


Other comprehensive income - - - -

Surplus/(deficit) for the period - - - -

Total comprehensive income - - - -

of w hich:

Attributable to the Australian

Government- - - -



Equity Injection - Appropriation - - - -

Departmental Capital Budget (DCB) - - - -

Sub-total transactions with owners - - - -

Transfers betw een equity components - - - -

Estimated closing balance as at 30

June 2016 3,506 - 183 3,689

Less: non-controlling interests - - - -


Australian Government 3,506 - 183 3,689



77


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


Cash received

Appropriations 4,892 3,241 2,595 2,613 1,665


services - - - - -


Cash used

Employees 1,259 1,227 1,225 1,236 1,256

Suppliers 3,633 2,014 1,370 1,377 409

Total cash used 4,892 3,241 2,595 2,613 1,665


operating activities - - - - -


Cash received




Cash used


equipment - - 59 60 60

Other - - - - -

Total cash used - - 59 60 60


investing activities - - (59) (60) (60)


78


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


Cash received

Contributed equity - - 59 60 60

Total cash received - - 59 60 60

Cash used

Other - - - - -



financing activities - - 59 60 60


held - - - - -


beginning of the reporting period 846 846 846 846 846


end of the reporting period 846 846 846 846 846



79


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


Capital budget - Bill 1 (DCB) - - 59 60 60

Equity injections - Bill 2 - - - - -

Total new capital appropriations - - 59 60 60

Provided for:

Purchase of non-financial assets - - 59 60 60

Total Items - - 59 60 60


ASSETS

Funded by capital appropriations1- - - - -


DCB2- - 59 60 60

TOTAL - - 59 60 60



MOVEMENT TABLE

Total purchases - - 59 60 60

Total cash used to acquire assets - - 59 60 60


2 Does not include annual finance lease costs. Includes purchases from current and previous years' Departmental Capital Budgets (DCBs).



80

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.


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.


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.

Comcare, the Safety Rehabilitation and

Compensation Commission, and the Seafarers Safety,

Rehabilitation and Compensation Authority


83

COMCARE, THE SAFETY, REHABILITATION AND

COMPENSATION COMMISSION, AND THE

SEAFARERS SAFETY, REHABILITATION AND

COMPENSATION AUTHORITY





Section 3: Explanatory tables and budgeted financial statements ...................... 103

3.1 Explanatory tables......................................................................................... 103

3.2 Budgeted financial statements ...................................................................... 105

Comcare Budget Statements 2015–16

85

COMCARE, THE SAFETY, REHABILITATION AND

COMPENSATION COMMISSION, AND THE

SEAFARERS SAFETY, REHABILITATION AND

COMPENSATION AUTHORITY



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


86

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.


87



Table 1.1: Comcare resource statement — Budget estimates for 2015–16 as at Budget May 2015

Actual

Available

Appropriation

2014–15

$'000

Estimate of

prior year

amounts

available in

2015–16

$'000

Proposed at

2015–16

Budget

$'000

Total

2015–16

estimate

$'000

Ope ning ba la nc e /Re se rve s a t ba nk - 6 17 ,14 7 - 6 17 ,14 7

REVENUE FROM GOVERNMENT


Outcome 1 2

2,189 - 7,727 7,466

Outcome 2 414 - - -

Outcome 3 4,960 - - -

Tota l ordina ry a nnua l se rvic e s 7 ,5 6 3 - 7 ,7 2 7 7 ,4 6 6

Tota l funds from Gove rnme nt 7 ,5 6 3 - 7 ,7 2 7 7 ,4 6 6

FUNDS FROM INDUSTRY SOURCES

Licence fees 16,173 - 15,776 15,776

Tota l 16 ,17 3 - 15 ,7 7 6 15 ,7 7 6

FUNDS FROM OTHER SOURCES

Interest 25,531 - 26,876 26,876

Sale of goods and services 1,797 - 1,001 1,001

Regulatory contributions 19,076 - 20,413 20,413

Grants from Portfolio Department3

72,956 - 69,726 69,726

Workers' compensation premiums 475,635 - 450,400 450,400

Tota l 5 9 4 ,9 9 5 - 5 6 8 ,4 16 5 6 8 ,4 16

Tota l ne t re sourc ing for Comc a re 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.


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.


88

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

2014–15

$'000

2015–16

$'000

2016–17

$'000

2017–18

$'000

2018–19

$'000

Expense measures

Simplifying Parliamentary Budgets 1.1

Departmental expenses - 261 209 210 212

Total - 261 209 210 212


Departmental - 261 209 210 212

Total - 261 209 210 212

Prepared on a Government Finance Statistics (fiscal) basis


89




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.


90

Figure 2 Changes to Comcare’s outcome structure


91

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.


92


Table 2.1 provides an overview of the total expenses for Outcome 1, by programme for 2015–16.


Outcome 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

Programme 1.1: Comcare Departmental Outcome 1

Revenue from Government


Grants received from portfolio department 72,956 69,726

Revenues from industry sources 16,173 15,776

Revenues from other independent sources 512,928 429,654

Revenues from other independent sources2 8,825 (10,014)

Total for Programme 1.1 618,445 512,869

Outcome 1 totals by resource type

Revenue from Government


Grants received from portfolio department 72,956 69,726

Revenues from industry sources 16,173 15,776

Revenues from other independent sources 512,928 429,654

Revenues from other independent sources2 8,825 (10,014)


2014-15 2015-16

Average staffing level (number) 610 652 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 asbestos-related claims liabilities.


93


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 Asbestos-Related Claims (Management of Commonwealth Liabilities) Act 2005 (ARC Act).


94

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.


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



Grants received from portfolio department 72,956 69,726 67,886 68,581 68,463

Expenses not requring appropriation in the

Budget year 529,101 445,430 451,346 464,196 482,094


Budget year2 8,825 (10,014) (6,854) (7,208) (6,374)

Total programme expenses 618,445 512,869 518,572 531,804 550,462 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 asbestos-related claims liabilities.


95

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


96

Table 2.2 Programme components

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

1.1 - Work Health, Safety and

Rehabilitation Regulation


Annual Appropriation 2,189 2,164 746 751 755

Expenses not requiring appropriation in

the Budget year 27,319 26,887 27,119 27,633 27,752

Total component expenses 29,508 29,051 27,865 28,384 28,507

1.2 - Comcare Workers' Compensation

Scheme Management


the Budget year 8,509 8,376 7,228 7,344 7,377


1.3 - SRCC and Seacare Authority

Support


Annual Appropriation 414 388 365 368 371


the Budget year 4,112 4,067 3,910 3,930 3,946


1.4 - Premium claims


Annual Appropriation - 261 209 210 212


the Budget year 527,042 435,135 442,690 455,468 473,786


1.5 - Pre-premium claims

Grants received from portfolio

department 50,069 36,515 35,312 34,109 32,614


the Budget year (31,970) (32,762) (30,728) (28,580) (26,095)


1.6 - Asbestos claims




department 22,887 33,211 32,574 34,472 35,849


the Budget year 2,914 (6,287) (5,727) (8,807) (11,046)


Total programme expenses 618,445 512,869 518,572 531,804 550,462 1 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.


97


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.


98

Component 1.5 – Pre-premium Claims



Component 1.6 – Asbestos Claims



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

Forward

Estimate

2018–19

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


99

Table 2.2.B Component 1.2 Comcare Workers’ Compensation Scheme Management


Revised

budget

2015–16

Budget

2016–17

Forward

Estimate

2017–18

Forward

Estimate

2018–19

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


Revised

budget

2015–16

Budget

2016–17

Forward

Estimate

2017–18

Forward

Estimate

2018–19

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


100

Table 2.2.D Component 1.4 – Premium claims


Revised

budget

2015–16

Budget

2016–17

Forward

Estimate

2017–18

Forward

Estimate

2018–19

Forward

Estimate

Funding ratio (i.e. the

percentage of premium-

related total assets to

premium-related liabilities )

71% 75% 79% 84% 88%

Commonwealth average

premium rate

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%


101

Table 2.2.E Component 1.4 – Premium claims (continued)


Revised

budget

2015–16

Budget

2016–17

Forward

Estimate

2017–18

Forward

Estimate

2018–19

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%

Table 2.2.F Component 1.5 Pre-premium claims


Revised

budget

2015–16

Budget

2016–17

Forward

Estimate

2017–18

Forward

Estimate

2018–19

Forward

Estimate

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%


102

Table 2.2.G Component 1.6 Asbestos Claims


Revised

budget

2015–16

Budget

2016–17

Forward

Estimate

2017–18

Forward

Estimate

2018–19

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%


103





Comcare has no movement of administered funds to report. For this reason Table 3.1.1 is not presented.


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 Opening

balance

$'000

Receipts

$'000

Payments

$'000

Adjustments

$'000

Closing

balance

$'000

Seafarers Rehabilitation and

Compensation Account

s78 PGPA Act (A) 1,304 132 (132) - 1,304

1,304 132 (132) - 1,304

Total special accounts

2015–16 Budget estimate 1 1,304 132 (132) - 1,304

2* 1,304 132 (132) - 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.


104

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).


Comcare has no Australian Government Indigenous expenditure to report. For this reason Table 3.1.3 is not presented.


105



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.


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

2015–16

Budget estimate

$'000

Workers' compensation premium 475,635 450,400

Licence fees 16,173 15,776

Regulatory contributions 19,076 20,413

Interest 25,531 26,876

Sales of goods and rendering of services 1,797 1,001

Total 538,212 514,466

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


106

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.


107

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 2015–16 2016–17 2017–18 2018–19

$'000 $'000 $'000 $'000 $'000

Workers' compensation liabilities

Premium 2,968,623 3,072,470 3,176,769 3,281,633 3,391,808

Pre-premium 389,737 356,967 326,231 297,642 271,539

Asbestos related - common law 979,860 972,720 966,280 956,480 944,300


108



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

EXPENSES


Suppliers 33,700 33,563 31,433 31,931 32,297


Claims payments 318,889 337,716 347,810 360,719 372,675

Claims - Movement in liabilities 187,744 65,003 67,823 67,342 72,899

Total expenses 618,445 512,869 518,572 531,804 550,462

LESS:

OWN-SOURCE INCOME

Own-source revenue


Licence fees 16,173 15,776 16,045 16,317 16,595

Regulatory contributions 19,076 20,413 20,760 21,113 21,471

Interest 25,531 26,877 30,606 35,015 39,553


department 72,956 69,726 67,886 68,581 68,463

Workers' compensation premium 475,635 450,400 461,000 471,500 482,300

Other non-tax revenue1 8,825 (10,014) (6,854) (7,208) (6,374)



services (1,548) (61,310) (71,889) (74,549) (72,599)



Australian Government 9,111 69,037 78,083 80,784 78,878




Total comprehensive income/(loss) 9,111 69,037 78,083 80,784 78,878



Government 9,111 69,037 78,083 80,784 78,878 1 This relates to non-cash movements in workers' compensation claims liabilities and

asbestos-related claims liabilities.



109


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

ASSETS

Financial assets

Cash and cash equivalents 617,147 765,588 913,435 1,065,761 1,231,021

Trade and other receivables 2,862,325 2,847,291 2,837,831 2,827,742 2,820,361

Other f inancial assets 8,174 8,174 8,174 8,174 8,174

Total financial assets 3,487,646 3,621,053 3,759,440 3,901,677 4,059,556



Intangibles 7,713 4,083 103 903 503



Total assets 3,509,692 3,640,128 3,784,744 3,931,310 4,083,418

LIABILITIES

Payables

Suppliers 9,562 9,562 9,562 9,562 9,562

Other payables 6,255 6,255 6,255 6,255 6,255

Total payables 15,817 15,817 15,817 15,817 15,817

Provisions


Other provisions 4,342,044 4,403,903 4,469,120 4,533,581 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)

EQUITY



Retained surplus

(accumulated deficit) (872,811) (803,774) (725,691) (644,907) (566,029)

Total parent entity interest (865,094) (796,057) (717,974) (637,190) (558,312)

Total Equity (865,094) (796,057) (717,974) (637,190) (558,312)



110


Retained

earnings

$'000

Asset

revaluation

reserve

$'000

Other

reserves

$'000

Contributed

equity/

capital

$'000

Total

equity

$'000



period (872,811) - - 7,717 (865,094)


policies - - - - -

Adjusted opening balance (872,811) - - 7,717 (865,094)


Surplus/(deficit) for the period 69,037 - - - 69,037

Total comprehensive income 69,037 - - - 69,037


30 June 2016 (803,774) - - 7,717 (796,057)

Less: non-controlling interests - - - - -


Australian Government (803,774) - - 7,717 (796,057)



111


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


Cash received

Appropriations 7,563 7,727 6,194 6,235 6,279


services 37,046 37,190 37,821 38,466 39,119

Interest 25,531 26,876 30,606 35,015 39,553


department 72,956 69,726 67,886 68,581 68,465

Other 475,635 450,400 461,000 471,500 482,299


Cash used

Employees 68,908 68,099 63,122 63,424 64,183

Suppliers 33,703 33,563 31,428 31,928 31,297

Net GST paid 1 - - - -

Other 318,889 337,716 347,810 360,719 372,675

Total cash used 421,501 439,378 442,360 456,071 469,155


operating activities 197,230 152,541 161,147 163,726 166,560


Cash used


equipment 2,400 4,100 13,300 11,400 1,300

Total cash used 2,400 4,100 13,300 11,400 1,300




beginning of the reporting period 422,317 617,147 765,588 913,435 1,065,761


end of the reporting period 617,147 765,588 913,435 1,065,761 1,231,021



112


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


ASSETS

Funded internally from departmental

resources 2,400 4,100 13,300 11,400 1,300

TOTAL 2,400 4,100 13,300 11,400 1,300



MOVEMENT TABLE

Total purchases 2,400 4,100 13,300 11,400 1,300




113


Other property,

plant and

equipment

$'000

Computer software

and intangibles

$'000

Total

$'000


Gross book value 32,824 19,810 52,634

Accumulated


impairment (19,712) (12,097) (31,809)

Ope ning ne t book ba la nc e 13 ,112 7 ,7 13 2 0 ,8 2 5




By purchase 4,100 - 4,100

Tota l a dditions 4 ,10 0 - 4 ,10 0

Othe r move me nts

Depreciation/amortisation expense (3,441) (3,630) (7,071)

Tota l othe r move me nts (3 ,4 4 1) (3 ,6 3 0 ) (7 ,0 7 1)

As a t 3 0 June 2 0 16

Gross book value 36,924 19,810 56,734

Accumulated


impairment (23,153) (15,727) (38,880)

Closing ne t book ba la nc e 13 ,7 7 1 4 ,0 8 3 17 ,8 5 4



114


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

EXPENSES

Suppliers 132 132 132 132 132


behalf of Government 132 132 132 132 132

LESS:

OWN-SOURCE INCOME

Own-source revenue

Taxation revenue

Other revenue 132 132 132 132 132



Government 132 132 132 132 132

Net cost of/(contribution by) services - - - - -

Surplus/(deficit) - - - - -

Total comprehensive income/(loss) - - - - -



115


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

ASSETS

Financial assets

Taxation receivables 11 11 11 11 11





LIABILITIES

Payables

Other payables 111 111 111 111 111

Total payables 111 111 111 111 111


behalf of Government 111 111 111 111 111

Net assets/(liabilities) 1,204 1,204 1,204 1,204 1,204



116


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


Cash received

Other 132 132 132 132 132

Total cash received 132 132 132 132 132

Cash used

Other 132 132 132 132 132

Total cash used 132 132 132 132 132


operating activities - - - - -


held - - - - -


beginning of reporting period - - - - -


- Special accounts 132 132 132 132 132

Total cash from Official Public 132 132 132 132 132


- Special accounts 132 132 132 132 132

- Transfers to other entities - - - - -

Total cash to Official Public Account 132 132 132 132 132





Comcare has no administered capital purchases. For this reason Table 3.2.10 is not presented.


Comcare has no administered non-financial assets. For this reason Table 3.2.11 is not presented.


117

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 asbestos- related 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.


118

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 asbestos-related compensation cases.

2. Movement in liabilities—net movements in outstanding workers’ compensation claims liabilities are recognised as expenses.


119

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.

123

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




FWC Budget Statements 2015–16

125

FAIR WORK COMMISSION



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).


126



Table 1.1: Fair Work Commission resource statement—Budget estimates for 2015–16 as at Budget May 2015

Actual

Available

Appropriation

2014–15

$'000

Estimate of

prior year

amounts

available in

2015–16

$'000

Proposed at

2015–16

Budget

$'000

Total 2015–16

estimate

$'000




36,693 34,558 - 34,558


82,348 - 81,968 81,968


1,286 - 2,429 2,429

Tota l 12 0 ,3 2 7 3 4 ,5 5 8 8 4 ,3 9 7 118 ,9 5 5

Tota l ordina ry a nnua l se rvic e s [A] 12 0 ,3 2 7 3 4 ,5 5 8 8 4 ,3 9 7 118 ,9 5 5



Tota l - - - -



a ppropria tions [A+B] 12 0 ,3 2 7 3 4 ,5 5 8 8 4 ,3 9 7 118 ,9 5 5


127

Table 1.1: Fair Work Commission resource statement—Budget estimates for 2015–16 as at Budget May 2015 (continued)

Actual

Available

Appropriation

2014–15

$'000

Estimate of

prior year

amounts

available in

2015–16

$'000

Proposed at

2015–16

Budget

$'000

Total 2015–16

estimate

$'000




Public Governance, Performance

and Accountability Act 2013 - s775

500 - 500 500

Tota l spe c ia l a ppropria tions [C] 5 0 0 - 5 0 0 5 0 0


spe c ia l a c c ounts - - - -

Spe c ia l a c c ounts - - - -


Tota l re sourc ing [A+B+C+D] 12 0 ,8 2 7 3 4 ,5 5 8 8 4 ,8 9 7 119 ,4 5 5




accounts and/or payments to

corporate entities through annual

appropriations

- - - -

Tota l ne t re sourc ing for Fa ir Work

Commission 12 0 ,8 2 7 3 4 ,5 5 8 8 4 ,8 9 7 119 ,4 5 5

1 Appropriation Bill (No.1) 2015-16.



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.



128

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

$'000

2015–16

$'000

2016–17

$'000

2017–18

$'000

2018–19

$'000

Measures

Communications and Public Affairs

Savings 1.1

Departmental expenses (11) (21) (21) (22) (22)

Total (11) (21) (21) (22) (22)

Total measures

Departmental (11) (21) (21) (22) (22)

Total (11) (21) (21) (22) (22)

Prepared on a Government Financial Statistics (fiscal) basis.


129




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



130

Table 2.1 Budgeted expenses for Outcome 1

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 w ith disputes

2014–15

Estimated

actual

expenses

$'000

2015–16

Estimated

expenses

$'000

Programme 1.1: Dispute resolution, minimum wage

setting, orders and approval of agreements










2014–15 2015–16






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.


131

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.


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


Departmental item 81,173 81,979 81,012 81,914 83,165


the Budget year1 3,576 4,583 4,584 4,584 4,584




132


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 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

Dispute resolution, minimum w age

setting, orders and approval of

agreements. 81,349 82,076 81,110 82,012 83,263


133


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.


134

Table 2.1.1.B Key performance indicators


Revised

Budget

2015–16

Budget

2016–17

Forward

Estimate

2017–18

Forward

Estimate

2018–19

Forward

Estimate

Improve or maintain the

time elapsed from lodging

applications to finalising

conciliations in unfair

dismissal applications

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


135




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.


3.2.1 Differences in agency resourcing and financial statements

The Fair Work Commission has nil difference to report.


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.


136

Total liabilities for 2015–16 are estimated to be $29.9 million. The largest liabilities are accrued employee entitlements.


Table 3.2.1 Comprehensive income statement (showing net cost of services) for the period ended 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

EXPENSES


Suppliers 26,282 29,039 28,718 28,799 29,016


Total expenses 84,749 86,562 85,596 86,498 87,749

LESS:

OWN-SOURCE INCOME

Own-source revenue



Gains

Other 176 97 98 98 98

Total gains 176 97 98 98 98



services 83,287 84,036 83,069 84,300 85,851










Government (3,400) (4,486) (4,486) (4,486) (4,486)

Prepared an Australian accounting standards basis.


137

Table 3.2.1 Comprehensive income statement (showing net cost of services) for the period ended 30 June (continued)


2014–15

$'000

2015–16

$'000

2016–17

$'000

2017–18

$'000

2018–19

$'000




through revenue appropriations.

- - - - -



revenue appropriations1

3,400 4,486 4,486 4,486 4,486



comprehensive income (3,400) (4,486) (4,486) (4,486) (4,486) 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.


138

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

ASSETS

Financial assets







Intangibles 1,812 2,954 3,134 3,014 2,994




Total assets 70,104 68,036 65,971 63,930 61,913

LIABILITIES

Payables

Suppliers 1,819 1,819 1,819 1,819 1,819

Other payables 9,122 9,122 9,122 9,122 9,122

Total payables 10,941 10,941 10,941 10,941 10,941

Provisions


Other provisions 96 96 96 96 96


Liabilities included in disposal groups

held for sale - - - - -


Net assets 40,203 38,135 36,070 34,029 32,012

EQUITY*



Reserves - - - - -


deficit) (971) (5,457) (9,943) (14,429) (18,915)


Total Equity 40,203 38,135 36,070 34,029 32,012

*Equity is the residual interest in assets after the deduction of liabilities.

Prepared on an Australian accounting standards basis.


139

Table 3.2.3 Budgeted statement of changes in equity—summary of movement (Budget Year 2015–16)

Retained

earnings

$'000

Asset

revaluation

reserve

$'000

Other

reserves

$'000

Contributed

equity/

capital

$'000

Total

equity

$'000



period (971) - - 41,174 40,203

Adjusted opening balance (971) - - 41,174 40,203


Surplus/(deficit) for the period (4,486) - - - (4,486)

Total comprehensive income (4,486) - - - (4,486)

of w hich:

Attributable to the Australian Government (4,486) - - - (4,486)



Departmental Capital Budget (DCB) - - - 2,418 2,418

Sub-total transactions with owners - - - 2,418 2,418

Transfers betw een equity components - - - - -


30 June 2016 (5,457) - - 43,592 38,135

Prepared on Australian accounting standards basis.


140

Table 3.2.4 Budgeted departmental statement of cash flows (for the period ended 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


Cash received

Appropriations 79,774 79,550 78,583 79,814 81,365

Other 1,286 2,429 2,429 2,100 1,800


Cash used

Employees 55,067 53,037 52,392 53,213 54,247

Suppliers 26,103 28,942 28,620 28,701 28,918

Total cash used 81,170 81,979 81,012 81,914 83,165


operating activities (110) - - - -


Cash received

Other - - - - -


Cash used


equipment 2,340 2,418 2,421 2,445 2,469

Total cash used 2,340 2,418 2,421 2,445 2,469




Cash received



Cash used

Other - - - - -





held - - - - -







141

Table 3.2.5 Departmental capital budget statement (for the period ended 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



Equity injections - Bill 2 - - - - -


Provided for:


Total Items 2,450 2,418 2,421 2,445 2,469


ASSETS

Funded by capital appropriations1 - - - - -


DCB2 2,340 2,418 2,421 2,445 2,469


resources3 - - - - -

TOTAL 2,340 2,418 2,421 2,445 2,469



MOVEMENT TABLE

Total purchases 2,340 2,418 2,421 2,445 2,469



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.



142

Table 3.2.6 Statement of asset movements (2015–16)

Buildings

$'000

Other property,

plant and

equipment

$'000

Computer

software and

intangibles

$'000

Total

$'000


Gross book value 26,221 10,549 4,068 40,838 Accumulated


impairment (5,918) (2,827) (2,256) (11,001)

Ope ning ne t book ba la nc e 2 0 ,3 0 3 7 ,7 2 2 1,8 12 2 9 ,8 3 7





178 778 1,462 2,418

Tota l a dditions 17 8 7 7 8 1,4 6 2 2 ,4 18

Othe r move me nts

Depreciation/amortisation expense (1,876) (2,290) (320) (4,486)

Tota l othe r move me nts (1,8 7 6 ) (2 ,2 9 0 ) (3 2 0 ) (4 ,4 8 6 )

As a t 3 0 June 2 0 16

Gross book value 26,399 11,327 5,530 43,256

Accumulated


impairment (7,794) (5,117) (2,576) (15,487)

Closing ne t book ba la nc e 18 ,6 0 5 6 ,2 10 2 ,9 5 4 2 7 ,7 6 9




143

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

$'000

2016–17

Forw ard

estimate

$'000

2017–18

Forw ard

estimate

$'000

2018–19

Forw ard

estimate

$'000

EXPENSES

Other expenses - - - - -


behalf of Government - - - - -

LESS:

OWN-SOURCE INCOME


Other revenue 578 578 578 578 578

Total non-taxation revenue 578 578 578 578 578



Government 578 578 578 578 578



Government 578 578 578 578 578

Net cost of/(contribution by) services (578) (578) (578) (578) (578)

Surplus/(deficit) before income tax 578 578 578 578 578

Income tax expense - - - - -

Surplus/(Deficit) after income tax 578 578 578 578 578


Items not subject of subsequent

reclassification to net cost of services



Total comprehensive income/(loss) 578 578 578 578 578


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.


144

Table 3.2.9 Schedule of budgeted administered cash flows (for the period ended 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


Cash received

Other 578 578 578 578 578


Cash used

Other - - - - -



operating activities 578 578 578 578 578


Cash received

Other - - - - -


Cash used

Other - - - - -



investing activities - - - - -


Cash received

Other - - - - -


Cash used

Other - - - - -



financing activities - - - - -


held 578 578 578 578 578


- Other (578) (578) (578) (578) (578)





145

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.


146


Accounting Policy



• 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


147

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.

Fair Work Ombudsman


151

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


FWO Budget Statements 2015–16

153

FAIR WORK OMBUDSMAN



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.


154



Table 1.1: Agency resource statement — Budget estimates for 2015–16 as at Budget May 2015

Actual

Available

Appropriation

2014–15

$'000

Estimate of

prior year

amounts

available in

2015–16

$'000

Proposed at

2015–16

Budget

$'000

Total 2015–16

estimate

$'000



Prior year appropriations2 79,653 66,129 - 66,129

Departmental appropriation3 115,516 - 117,897 117,897

s74 Retained revenue receipts4 1,300 - 800 800

Tota l 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

Othe r se rvic e s5

- - - -

Tota l - - - -



a ppropria tions [A+B] 19 6 ,4 6 9 6 6 ,12 9 118 ,6 9 7 18 7 ,2 2 6




Fair Work Act 2009 500 - 225 225

Tota l spe c ia l a ppropria tions [C] 5 0 0 - 2 2 5 2 2 5


spe c ia l a c c ounts 19 6 ,9 6 9 6 6 ,12 9 118 ,9 2 2 18 7 ,4 5 1


155

Table 1.1: Agency resource statement — Budget estimates for 2015–16 as at Budget May 2015 (continued)

Actual

Available

Appropriation

2014–15

$'000

Estimate of

prior year

amounts

available in

2015–16

$'000

Proposed at

2015–16

Budget

$'000

Total 2015–16

estimate

$'000



Tota l re sourc ing [A+B+C+D] 19 6 ,9 6 9 6 6 ,12 9 118 ,9 2 2 18 7 ,4 5 1




accounts

- - - -

Tota l ne t re sourc ing for a ge nc y

Fa ir Work Ombudsma n 19 6 ,9 6 9 6 6 ,12 9 118 ,9 2 2 18 7 ,4 5 1








156

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


Programme 2014–15 2015–16 2016–17 2017–18 2018–19

$'000 $'000 $'000 $'000 $'000

Measures


Savings 1.1


Total (75) (150) (149) (151) (151)

Expense measures

Departmental (75) (150) (149) (151) (151)

Total (75) (150) (149) (151) (151)



157



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


158

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.


159

Outcome 1 Budgeted Expenses and Resources


Table 2.1: Budgeted Expenses and Resources for Outcome 1

Outcome 1: Compliance with workplace relations

legislation by employees and employers through

advice, education and where necessary enforcement.

2014–15

Estimated

actual

expenses

$'000

2015–16

Estimated

expenses

$'000

Programme 1.1: Education Services and Compliance

Activities


Special appropriations 500 225







Special appropriations 500 225





2014–15 2015–16






160


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.


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


Fair Work Act 2009 500 225 250 275 250


Departmental items 115,834 111,286 107,084 107,137 107,694


Budget year1 10,333 10,701 7,102 8,069 7,982




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.



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

Education, investigation, provision of

advice and information services 126,167 121,987 114,186 115,206 115,676


161


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 2014–15

Revised

Budget

2015–16

Budget

2016–17

Forward

Estimate

2017–18

Forward

Estimate

2018–19

Forward

Estimate

Number of targeted

campaigns:

- National 4 4 4 4 4

- State (number of

campaigns in each

state/territory)

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


162





The Fair Work Ombudsman has no administered funds appropriations. For this reason Table 3.1.1 is not presented.


The Fair Work Ombudsman has no Special Accounts. For this reason Table 3.1.2 is not presented.


The Fair Work Ombudsman has no Australian Government Indigenous expenditure. For this reason Table 3.1.3 is not presented.


163



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.


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.


164



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

EXPENSES


Suppliers 41,250 38,482 35,585 35,237 36,230


Total expenses 126,167 121,987 114,186 115,206 115,676

LESS:

OWN-SOURCE INCOME

Own-source revenue

Sale of goods and rendering of services 4,350 2,900 1,050 690 500

Other 300 300 300 300 300

Total own-source revenue 4,650 3,200 1,350 990 800

Gains

Other 100 100 100 100 100

Total gains 100 100 100 100 100

Total own-source income 4,750 3,300 1,450 1,090 900


services 121,417 118,687 112,736 114,116 114,776









Government (10,233) (10,601) (7,002) (7,969) (7,882)


165



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



comprehensive income (10,233) (10,601) (7,002) (7,969) (7,882) 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.



166


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

ASSETS

Financial assets

Cash and cash equivalents 3,160 3,160 3,160 3,160 3,160






Intangibles 11,138 11,611 10,222 8,702 6,720




Total assets 100,070 95,844 95,428 92,455 91,001

LIABILITIES

Payables

Suppliers 11,164 10,370 11,369 10,844 10,844

Total payables 11,164 10,370 11,369 10,844 10,844

Provisions


Other provisions 8,261 5,969 4,969 4,969 4,969



Net assets 60,570 59,780 59,640 57,067 55,613


167


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*



Reserves 5,776 5,776 5,776 5,776 5,776


deficit) (37,768) (48,369) (55,371) (63,340) (71,222)


Total Equity 60,570 59,780 59,640 57,067 55,613




168


Retained

earnings

$'000

Asset

revaluation

reserve

$'000

Other

reserves

$'000

Contributed

equity/

capital

$'000

Total

equity

$'000



period (37,768) 5,776 - 92,562 60,570

Adjusted opening balance (37,768) 5,776 - 92,562 60,570


Surplus/(deficit) for the period (10,601) - - - (10,601)

Total comprehensive income (10,601) - - - (10,601)



Equity Injection - Appropriation - - - - -



Estimated closing balance as at 30

June 2016 (48,369) 5,776 - 102,373 59,780



169


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


Cash received

Appropriations 124,708 111,031 105,519 106,072 107,315


services 4,350 2,900 1,050 690 500

Other 300 300 300 300 300


Cash used

Employees 75,322 73,254 71,874 71,875 71,564

Suppliers 43,069 39,468 34,486 35,662 36,130

Other 2,000 2,000 1,000 - -

Total cash used 120,391 114,722 107,360 107,537 107,694


operating activities 8,967 (491) (491) (475) 421


Cash received

Other - - - - -


Cash used


equipment 13,299 9,320 6,371 4,921 6,849

Total cash used 13,299 9,320 6,371 4,921 6,849




170


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


Cash received



Cash used

Other - - - - -





held - - - - -


beginning of the reporting period 3,160 3,160 3,160 3,160 3,160


the end of the reporting period 3,160 3,160 3,160 3,160 3,160



171


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




Provided for:


Total Items 4,332 9,811 6,862 5,396 6,428


ASSETS


DCB1 11,299 4,320 4,371 4,921 5,849


resources2 2,000 5,000 2,000 - 1,000

TOTAL 13,299 9,320 6,371 4,921 6,849



MOVEMENT TABLE

Total purchases 13,299 9,320 6,371 4,921 6,849






- gifts






172


Buildings

$'000

Other property,

plant and

equipment

$'000

Computer

software and

intangibles

$'000

Total

$'000


Gross book value 19,160 4,460 27,221 50,841

Accumulated depreciation/amortisation

and impairment(5,548) (672) (16,083) (22,303)

Ope ning ne t book ba la nc e 13 ,6 12 3 ,7 8 8 11,13 8 2 8 ,5 3 8


Estima te d e xpe nditure on ne w or

re pla c e me nt a sse ts

By purchase - appropriation equity1 4,977 203 4,140 9,320

Tota l a dditions 4 ,9 7 7 2 0 3 4 ,14 0 9 ,3 2 0

Othe r move me nts

Depreciation/amortisation expense (6,103) (831) (3,667) (10,601)

Tota l othe r move me nts (6 ,10 3 ) (8 3 1) (3 ,6 6 7 ) (10 ,6 0 1)

As a t 3 0 June 2 0 16

Gross book value 24,137 4,663 31,361 60,161

Accumulated depreciation/amortisation

and impairment(11,651) (1,503) (19,750) (32,904)

Closing ne t book ba la nc e 12 ,4 8 6 3 ,16 0 11,6 11 2 7 ,2 5 7




173


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

EXPENSES

Other expenses - - - - -



LESS:

OWN-SOURCE INCOME


Other revenue 300 300 300 300 300

Total non-taxation revenue 300 300 300 300 300



Government 300 300 300 300 300



Government 300 300 300 300 300

Total comprehensive income/(loss) (300) (300) (300) (300) (300)



174


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

ASSETS

Financial assets


Other f inancial assets 90 90 90 90 90




LIABILITIES

Payables

Other payables - - - - -

Total payables - - - - -



Net assets/(liabilities) 1,371 1,371 1,371 1,371 1,371



175


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


Cash received

Other 300 300 300 300 300


Cash used

Other - - - - -





Cash received

Other - - - - -


Cash used

Other - - - - -



financing activities - - - - -


held 300 300 300 300 300


beginning of reporting period


- Appropriations - - - - -

Total cash from Official Public

Account - - - - -


- Appropriations - - - - -

- Transfers to other entities (300) (300) (300) (300) (300)

Total cash to Official Public

Account (300) (300) (300) (300) (300)





176


The Fair Work Ombudsman has no administered capital budget. For this reason Table 3.2.10 is not presented.


The Fair Work Ombudsman has no administered non-financial assets. For this reason Table 3.2.11 is not presented.


177


Accounting Policy



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.


178

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


179

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.

Office of the Fair Work Building Industry

Inspectorate


183

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


FWBII Budget Statements 2015–16

185

OFFICE OF THE FAIR WORK BUILDING INDUSTRY

INSPECTORATE



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.


186



Table 1.1: Office of the Fair Work Building Industry Inspectorate resource statement—Budget estimates for 2015–16 as at Budget May 2015

Actual

Available

Appropriation

2014–15

$'000

Estimate of

prior year

amounts

available in

2015–16

$'000

Proposed at

2015–16

Budget

$'000

Total 2015–16

estimate

$'000




48,419 47,635 - 47,635


14,986 - 35,160 35,160


44 - 51 51

Tota l 6 3 ,4 4 9 4 7 ,6 3 5 3 5 ,2 11 8 2 ,8 4 6

Tota l ordina ry a nnua l se rvic e s [A] 6 3 ,4 4 9 4 7 ,6 3 5 3 5 ,2 11 8 2 ,8 4 6

Othe r se rvic e s5



Tota l - - - -



a ppropria tions [A+B] 6 3 ,4 4 9 4 7 ,6 3 5 3 5 ,2 11 8 2 ,8 4 6


187

Table 1.1: Office of the Fair Work Building Industry Inspectorate resource statement—Budget estimates for 2015–16 as at Budget May 2015 (continued)

Actual

Available

Appropriation

2014–15

$'000

Estimate of

prior year

amounts

available in

2015–16

$'000

Proposed at

2015–16

Budget

$'000

Total 2015–16

estimate

$'000

Spe c ia l a ppropria tions - - - -



spe c ia l a c c ounts 63,449 47,635 35,211 82,846



Tota l re sourc ing [A+B+C+D] 6 3 ,4 4 9 4 7 ,6 3 5 3 5 ,2 11 8 2 ,8 4 6




accounts

- - - -

and/or payments to corporate entities

through annual appropriations- - - -

Tota l ne t re sourc ing for the

Offic e of the Fa ir Work Building

Industry Inspe c tora te 6 3 ,4 4 9 4 7 ,6 3 5 3 5 ,2 11 8 2 ,8 4 6



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'.





188

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


Programme

2014–15

$'000

2015–16

$'000

2016–17

$'000

2017–18

$'000

2018–19

$'000

Measures


Savings 1.1


Total (7) (14) (14) (14) (14)

Total measures

Departmental (7) (14) (14) (14) (14)

Total (7) (14) (14) (14) (14)



189




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.


190

Outcome 1 Budgeted Expenses


Table 2.1: Budgeted Expenses for Outcome 1

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.

2014–15

Estimated

actual

expenses

$'000

2015–16

Estimated

expenses

$'000

Programme 1.1: Education Services and Compliance



Expenses not requiring appropriation in the Budget year2 785 402







2014–15 2015–16




Note: Departmental appropriation splits and totals are indicative estimates and may change in the course of the budget year as government priorities change


191


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.


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


Departmental item 14,590 33,606 33,556 33,805 34,142


Budget year1 785 402 1,081 1,251 1,159

Total programme expenses 15,375 34,008 34,637 35,056 35,301 1 Expenses not requiring appropriation in the Budget year are made up of depreciation expenses,

amortisation expenses, and audit fees.


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.



Estimated

actual

$'000

2015–16

Budget

$'000

2016–17

Forw ard

estimate

$'000

2016–17

Forw ard

estimate

$'000

2016–17

Forw ard

estimate

$'000

Education, investigation, provision of

advice and information services 15,375 34,008 34,637 35,056 35,301


192


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 2015–16 target

Level of satisfaction of clients with quality and timeliness of advice and assistance provided by FWBII.

75% of surveyed clients satisfied or highly satisfied

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.

File 75% of matters in court within 12 months of the complaint being lodged

Level of satisfaction of a range of industry participants with contact aimed at promoting appropriate standards of conduct.

75% of surveyed industry participants satisfied or highly satisfied


193





The Fair Work Building Industry Inspectorate has no administered funds appropriations. For this reason Table 3.1.1 is not presented.


The Fair Work Building Industry Inspectorate has no special accounts. For this reason Table 3.1.2 is not presented.


The Fair Work Building Industry Inspectorate has no Australian Government Indigenous expenditure. For this reason Table 3.1.3 is not presented.



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.


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.


194

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.


195



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

EXPENSES


Suppliers 6,034 14,523 13,908 13,867 14,273

Depreciation and amortisation 729 346 1,025 1,195 1,103

Total expenses 15,375 34,008 34,637 35,056 35,301

LESS:

OWN-SOURCE INCOME

Own-source revenue

Other 46 47 49 49 50

Total own-source revenue 46 47 49 49 50

Gains

Other 56 56 56 56 56

Total gains 56 56 56 56 56

Total own-source income 102 103 105 105 106


services 15,273 33,905 34,532 34,951 35,195



Australian Government (729) (346) (1,025) (1,195) (1,103)




Total comprehensive income/(loss) (729) (346) (1,025) (1,195) (1,103)



Government (729) (346) (1,025) (1,195) (1,103)


196



2014–15

$'000

2015–16

$'000

2016–17

$'000

2017–18

$'000

2018–19

$'000





- - - - -




729 346 1,025 1,195 1,103



comprehensive income (729) (346) (1,025) (1,195) (1,103)




197


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

ASSETS

Financial assets





Land and buildings 346 4,750 4,120 3,577 2,847

Property, plant and equipment 538 568 428 322 727

Intangibles 685 655 498 223 -

Other non-financial assets 614 614 614 614 614


Total assets 50,439 51,096 50,521 49,779 49,133

LIABILITIES

Payables

Suppliers 1,543 1,528 1,528 1,528 1,528

Other payables 1,609 1,026 1,026 1,026 1,026

Total payables 3,152 2,554 2,554 2,554 2,554

Provisions




Net assets 43,792 45,047 44,472 43,730 43,084


198


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*




deficit) 38,614 38,268 37,243 36,048 34,945


Total Equity 43,792 45,047 44,472 43,730 43,084




199

Table 3.2.3: Departmental statement of changes in equity—summary of movement (Budget year 2015–16)

Retained

earnings

$'000

Asset

revaluation

reserve

$'000

Other

reserves

$'000

Contributed

equity/

capital

$'000

Total

equity

$'000



period 38,614 - - 5,178 43,792

Adjusted opening balance 38,614 - - 5,178 43,792


Surplus/(deficit) for the period (346) - - - (346)

Total comprehensive income (346) - - - (346)

of w hich:

Attributable to the Australian Government (346) - - - (346)







30 June 2016 38,268 - - 6,779 45,047



Australian Government 38,268 - - 6,779 45,047



200


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


Cash received

Appropriations 15,394 32,444 33,155 33,574 34,190

Other 8 10 49 49 50


Cash used

Employees 7,745 18,890 19,704 19,994 19,925

Suppliers 6,804 11,168 13,852 13,811 14,217

Total cash used 14,549 30,058 33,556 33,805 34,142


operating activities 853 2,396 (352) (182) 98


Cash received

Other - - - - -


Cash used


equipment 1,314 4,750 98 271 555

Total cash used 1,314 4,750 98 271 555


investing activities (1,314) (4,750) (98) (271) (555)


201


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


Cash received

Contributed equity 463 2,436 450 453 457

Total cash received 463 2,436 450 453 457

Cash used

Other - - - - -



financing activities 463 2,436 450 453 457


held 2 82 - - -







202


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


Capital budget - Bill 1 (DCB) 442 1,601 450 453 457

Total new capital appropriations 442 1,601 450 453 457

Provided for:

Purchase of non-financial assets 442 1,601 450 453 457

Total Items 442 1,601 450 453 457


ASSETS


DCB11,314 836 98 271 555


resources2- 3,914 - - -

TOTAL 1,314 4,750 98 271 555



MOVEMENT TABLE

Total purchases 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).


- current Bill 1 and prior year Act 1/3/5 appropriations (excluding amounts from the DCB).


- gifts


- s74 relevant agency receipts

- proceeds from the sale of assets



203


Buildings

$'000

Other property,

plant and

equipment

$'000

Computer

software and

intangibles

$'000

Total

$'000


Gross book value 7,769 1,189 1,494 10,452 Accumulated


impairment (7,423) (651) (809) (8,883)

Ope ning ne t book ba la nc e 3 4 6 5 3 8 6 8 5 1,5 6 9





4,640 110 - 4,750

Tota l a dditions 4 ,6 4 0 110 - 4 ,7 5 0

Othe r move me nts

Depreciation/amortisation expense (236) (80) (30) (346)

Tota l othe r move me nts (2 3 6 ) (8 0 ) (3 0 ) (3 4 6 )

As a t 3 0 June 2 0 16

Gross book value 12,409 1,299 1,494 15,202

Accumulated


impairment (7,659) (731) (839) (9,229)

Closing ne t book ba la nc e 4 ,7 5 0 5 6 8 6 5 5 5 ,9 7 3




204


The FWBII has no budgeted administered income or expenses. For this reason Table 3.2.7 is not presented.


The FWBII has no budgeted administered assets or liabilities. For this reason Table 3.2.8 is not presented.


The FWBII has no budgeted administered cash flows. For this reason Table 3.2.9 is not presented.


The FWBII has no administered capital budget. For this reason Table 3.2.10 is not presented.


The FWBII has no administered non-financial assets. For this reason Table 3.2.11 is not presented.


205

3.2.4 Notes to the Financial Statements

Accounting Policy



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.


206

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).

Safe Work Australia


209

SAFE WORK AUSTRALIA








SWA Budget Statements 2015–16

211

SAFE WORK AUSTRALIA



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


212

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.


213


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

Actual

Available

Appropriation

2014–15

$'000

Estimate of

prior year

amounts

available in

2015–16

$'000

Proposed at

2015–16

Budget

$'000

Total 2015–16

estimate

$'000



Prior year appropriations2 9 - - -

Departmental appropriation3 9,832 - 9,705 9,705

Tota l 9 ,8 4 1 - 9 ,7 0 5 9 ,7 0 5

Tota l ordina ry a nnua l se rvic e s [A] 9 ,8 4 1 - 9 ,7 0 5 9 ,7 0 5

Othe r se rvic e s - - - -

Tota l - - - -



a ppropria tions [A+B] 9 ,8 4 1 - 9 ,7 0 5 9 ,7 0 5


214

Table 1.1: Safe Work Australia resource statement — Budget estimates for 2015–16 as at Budget May 2015 (continued)

Actual

Available

Appropriation

2014–15

$'000

Estimate of

prior year

amounts

available in

2015–16

$'000

Proposed at

2015–16

Budget

$'000

Total 2015–16

estimate

$'000

Spe c ia l a ppropria tions - - - -



spe c ia l a c c ounts 9 ,8 4 1 - 9 ,7 0 5 9 ,7 0 5


Opening balance4

10,699 - 10,999 10,999

Appropriation receipts5

9,832 - 9,705 9,705

Non- appropriation receipts to Special

Accounts 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




accounts - - - -


through annual appropriations (9,832) - (9,705) (9,705)

Tota l ne t re sourc ing for Sa 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.


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.



215

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.


216




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


217

identify opportunities to improve workers’ compensation arrangements

develop nationally consistent explosives regulation

cooperate and share information, expertise and experience with international organisations


218




Outcome 1: Healthier, safer and more productive

workplaces through improvements to Australian work

health and safety and workers' compensation

arrangements.

2014–15

Estimated

actual

expenses

$'000

2015–16

Estimated

expenses

$'000

Programme 1.1: Reform of and improvements to

Australian work health and safety and workers'

compensation arrangements.



Special accounts 10,996 11,036






Special accounts 10,996 11,036



2014–15 2015–16






219


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.


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

Special account expenses:

Safe Work Australia Special Account 9,996 10,027 10,262 10,316 10,574


Ordinary annual services (Appropriation Bill

No. 1)9,607 9,632 9,887 10,317 10,574


Budget year1 544 231 217 160 166




220


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.


221


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 2015–16 target

The work health and safety framework continues to be developed, implemented and reviewed in accordance with COAG requirements.

COAG requirements are met.

Level of satisfaction of the Chair of Safe Work Australia with how the agency is achieving the deliverables of its operational plan.

Chair rates the performance of the agency as very good or above.

Level of satisfaction of the Members of Safe Work Australia with how the agency is achieving the deliverables of its operational plan.

80% of Members agree the agency is achieving the deliverables of its operational plan.


222





Safe Work Australia has no administered funds. For this reason Table 3.1.1 is not presented.


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

Opening

balance

$'000

Receipts

$'000

Payments

$'000

Adjustments

$'000

Closing

balance

$'000

Safe Work Australia Special

Account (D) 2015–161

10,999 20,742 (20,442) - 11,299

Safe Work Australia

Special Account (D)

2014–15

1

10,699 20,828 (20,528) - 10,999


2015–16 Budget estimate 10,999 20,742 (20,442) - 11,299


2014–15 estimated actual 10,699 20,828 (20,528) - 10,999

(D) = Departmental


Safe Work Australia has no Australian Government Indigenous expenditure to report. For this reason Table 3.1.3 is not presented.


223



The agency receives funds from states and territories and matched appropriation funding from the Commonwealth as provided for in the IGA.


The agency is not expecting any major changes in its operations from a financial perspective. Funding arrangements are provided for in the IGA.



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

EXPENSES


Suppliers 6,753 6,752 6,851 6,969 6,929

Grants 100 100 100 100 100

Depreciation and amortisation 484 171 157 100 106

Total expenses 20,147 19,891 20,366 20,794 21,315

LESS:

OWN-SOURCE INCOME

Own-source revenue



Gains

Sale of assets - - - - -

Other 60 60 60 60 60

Total gains 60 60 60 60 60



services 10,091 9,803 10,044 10,417 10,680



Australian Government (484) (171) (157) (100) (106)




Government (484) (171) (157) (100) (106)


224



2014–15

$'000

2015–16

$'000

2016–17

$'000

2017–18

$'000

2018–19

$'000





- - - - -




484 171 157 100 106



comprehensive income (484) (171) (157) (100) (106)




225


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

ASSETS

Financial assets





Land and buildings 283 183 213 343 343


Intangibles 88 117 146 196 146


Total non-financial assets 647 549 625 765 905


Total assets 11,941 12,143 12,219 12,359 12,499

LIABILITIES

Payables

Suppliers 2,008 2,008 2,008 2,008 2,008

Other payables 392 392 392 392 392

Total payables 2,400 2,400 2,400 2,400 2,400

Provisions




Net assets 5,828 5,730 5,806 5,946 6,086


226


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*



Reserves 859 859 859 859 859


deficit) 746 575 418 318 212


Total Equity 5,828 5,730 5,806 5,946 6,086

* ’Equity’ is the residual interest in assets after deduction of liabilities.



227


Retained

earnings

$

'000

Asset

revaluation

reserve

$'000

Other

reserves

$'000

Contributed

equity/

capital

$'000

Total

equity

$'000



period 746 859 - 4,223 5,828

Adjusted opening balance 746 859 - 4,223 5,828


Other comprehensive income - - - - -



of w hich:




Departmental Capital Budget (DCB) - - - 73 73

Sub-total transactions with owners - - - 73 73

Transfers betw een equity


Estimated closing balance as at 30 June

2016 575 859 - 4,296 5,730



Australian Government 575 859 - 4,296 5,730 Prepared on Australian Accounting Standards basis.


228


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


Cash received

Appropriation Receipts from

Government 9,607 9,632 9,887 10,317 10,574


services 10,996 11,038 11,296 11,358 11,641


Cash used

Employees 12,810 12,868 13,258 13,625 13,285

Suppliers 6,730 6,752 6,852 6,850 7,935

Grants 100 100 100 100 100

Net GST Paid 687 687 695 695 695

Total cash used 20,327 20,407 20,905 21,270 22,015




Cash received




Cash used

Purchase of property, plant and 225 73 233 240 246

Total cash used 225 73 233 240 246


investing activities (225) (73) (233) (240) (246)


Cash received

Contributed equity 225 73 233 240 246


Cash used

Other 276 263 278 405 200

Total cash used 276 263 278 405 200


financing activities (51) (190) (45) (165) 46

Net increase/(decrease) in cash - - - - -






229


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


Capital budget - Bill 1 (DCB) 225 73 233 240 246

Total new capital appropriations 225 73 233 240 246

Provided for:

Purchase of non-financial assets 225 73 233 240 246

Annual finance lease costs - - - - -

Other Items - - - - -

Total Items 225 73 233 240 246


ASSETS

Funded by capital appropriation - DCB1225 73 233 240 246


resources2- - - - -

TOTAL 225 73 233 240 246



MOVEMENT TABLE

Total purchases 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).




- gifts





230


Buildings

$'000

Other property,

plant and

equipment

$'000

Computer

software and

intangibles

$'000

Total

$'000


Gross book value 1,169 297 434 1,900

Accumulated


impairment (886) (103) (346) (1,335)

Ope ning ne t book ba la nc e 2 8 3 19 4 8 8 5 6 5




By purchase - appropriation ordinary

annual services1

- 27 46 73

Tota l a dditions - 2 7 4 6 7 3

Othe r move me nts


Tota l othe r move me nts (10 0 ) (5 4 ) (17 ) (17 1)

As a t 3 0 June 2 0 16

Gross book value 1,169 324 480 1,973

Accumulated


impairment (986) (157) (363) (1,506)

Closing ne t book ba la nc e 18 3 16 7 117 4 6 7

1 "Appropriation ordinary annual services" refers to funding provided through Appropriation Bill (No.1) 2015–16 for depreciation/amortisation expenses, DCBs or other operational expenses.


231

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.


Safe Work Australia has no administered cash flows. For this reason Table 3.2.9 is not presented.


Safe Work Australia has no administered capital purchases. For this reason Table 3.2.10 is not presented.


Safe Work Australia has no administered non-financial assets. For this reason Table 3.2.11 is not presented.


Other gains represented in the Comprehensive Income Statement are resources received free of charge from other Commonwealth agencies.

Workplace Gender Equality Agency


235

WORKPLACE GENDER EQUALITY AGENCY








WGEA Budget Statements 2015–16

237

WORKPLACE GENDER EQUALITY AGENCY



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.


238



Table 1.1: WGEA resource statement — Budget estimates for 2015–16 as at Budget May 2015

Actual

Available

Appropriation

2014–15

$'000

Estimate of

prior year

amounts

available in

2015–16

$'000

Proposed at

2015–16

Budget

$'000

Total 2015–16

estimate

$'000




1,114 742 - 742


5,008 - 5,132 5,132


190 - 100 100

Tota l 6 ,3 12 7 4 2 5 ,2 3 2 5 ,9 7 4

Tota l ordina ry a nnua l se rvic e s [A] 6 ,3 12 7 4 2 5 ,2 3 2 5 ,9 7 4





a ppropria tions [A+B] 6 ,3 12 7 4 2 5 ,2 3 2 5 ,9 7 4


239

Table 1.1: WGEA resource statement — Budget estimates for 2015–16 as at Budget May 2015 (continued)

Actual

Available

Appropriation

2014–15

$'000

Estimate of

prior year

amounts

available in

2015–16

$'000

Proposed at

2015–16

Budget

$'000

Total 2015–16

estimate

$'000


spe c ia l a c c ounts 6 ,3 12 7 4 2 5 ,2 3 2 5 ,9 7 4

Tota l re sourc ing [A+B+C+D] 6 ,3 12 7 4 2 5 ,2 3 2 5 ,9 7 4




accounts

- - - -


through annual appropriations- - - -


Workpla c e Ge nde r Equa lity

Age nc y 6 ,3 12 7 4 2 5 ,2 3 2 5 ,9 7 4







240

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

$'000

2015–16

$'000

2016–17

$'000

2017–18

$'000

2018–19

$'000

Expense measures


Savings 1.1


Total (18) (36) (36) (36) (36)


Departmental (18) (36) (36) (36) (36)

Total (18) (36) (36) (36) (36)

Prepared on a Government Finance Statistics (fiscal) basis.


241




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.




242


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

2014–15

Estimated

actual

expenses

$'000

2015–16

Estimated

expenses

$'000

Programme 1.1: Workplace Gender Equality










2014–15 2015–16

Average staffing level (number) 29 29 1 Departmental appropriation combines 'Ordinary annual services (Appropriation Bill No. 1)' and

'Revenue from independent sources (s 74)'.




243


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.


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

Programme support 5,198 5,035 5,053 5,101 5,151


Budget year1 676 663 616 461 364




244


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.


245

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.


246


Table 2.1.1.A Education

Deliverable 2014–15

Revised

Budget

2015–16

Budget

2016–17

Forward

Estimate

2017–18

Forward

Estimate

2018–19

Forward

Estimate

Education participants 1351 1419 1489 1564 1642

Educational resources

available on Agency website

600 66 73 80 88

Benchmarks developed 43 43 43 43 43

Table 2.1.1.B Understanding and acceptance and public discussion


Revised

Budget

2015–16

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


Revised

Budget

2015–16

Budget

2016–17

Forward

Estimate

2017–18

Forward

Estimate

2018–19

Forward

Estimate

Employers registered with

the Agency as relevant

employers

11,700 11,759 11,817 11,876 11,936

Employer reviews

conducted

- 10 11 12 13

Table 2.1.1.D Reporting by Agency


Revised

Budget

2015–16

Budget

2016–17

Forward

Estimate

2017–18

Forward

Estimate

2018–19

Forward

Estimate

Biennial report to the

Minister

- - 1 - 1


247


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

2014–15

Revised

Budget

2015–16

Budget

2016–17

Forward

Estimate

2017–18

Forward

Estimate

2018–19

Forward

Estimate

Percentage of women in

leadership roles in relevant

employers

- Governing board members 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%

Percentage of relevant

employers that have

conducted gender

remuneration gap analyses

24% 25% 25.5% 26% 27%

Percentage of relevant

employers with a strategy

or policy to support

employees with family or

caring responsibilities

55.1% 56% 57% 58% 59%

Number of visits to Agency

website

200,000 210,000 220,500 231,525 243,101


248





WGEA does not have any administered funds. For this reason Table 3.1.1 is not presented.


WGEA does not have any special accounts. For this reason Table 3.1.2 is not presented.


WGEA does not have any Australian Government Indigenous expenditure. For this reason Table 3.1.3 is not presented.


249



Table 3.2.1 recognises the full year revenue for 2015–16 on the basis of accrual accounting principles.


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.


250



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

EXPENSES


Suppliers 1,992 1,638 1,392 1,367 1,370

Depreciation and amortisation 646 633 616 461 364

Finance costs 10 10 10 10 10

Total expenses 5,874 5,698 5,669 5,562 5,515

LESS:

OWN-SOURCE INCOME

Own-source revenue

Other 190 100 100 100 100

Total own-source revenue 190 100 100 100 100

Gains

Other 30 30 30 30 30

Total gains 30 30 30 30 30

Total own-source income 220 130 130 130 130


services 5,654 5,568 5,539 5,432 5,385



Australian Government(646) (633) (616) (461) (364)




Government (646) (633) (616) (461) (364)


251



2014–15

$'000

2015–16

$'000

2016–17

$'000

2017–18

$'000

2018–19

$'000





- - - - -




646 633 616 461 364



comprehensive income (646) (633) (616) (461) (364)




252


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

ASSETS

Financial assets


Trade and other receivables 494 494 494 494 494

Total financial assets 940 940 940 940 940


Land and buildings 548 318 88 - -


Intangibles 1,758 1,611 1,462 1,322 1,183




Total assets 3,446 3,010 2,589 2,332 2,173

LIABILITIES

Payables

Suppliers 63 63 63 63 63

Other payables 491 489 488 488 488

Total payables 554 552 551 551 551

Interest bearing liabilities

Leases 54 54 54 54 54

Total interest bearing liabilities 54 54 54 54 54

Provisions

Employee provisions 379 381 382 382 382

Other provisions 10 10 10 10 10

Total provisions 389 391 392 392 392

Liabilities included in disposal groups

held for sale - - - - -

Total liabilities 997 997 997 997 997

Net assets 2,449 2,013 1,592 1,335 1,176


253


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*



Reserves 40 40 40 40 40


deficit) (1,250) (1,883) (2,499) (2,960) (3,324)


Total Equity 2,449 2,013 1,592 1,335 1,176

*’Equity’ is the residual interest in assets after deduction of liabilities.



254


Retained

earnings

$'000

Asset

revaluation

reserve

$'000

Other

reserves

$'000

Contributed

equity/

capital

$'000

Total

equity

$'000



period (1,250) 40 - 3,659 2,449


policies - - - - -

Adjusted opening balance (1,250) 40 - 3,659 2,449




of w hich:




Departmental Capital Budget (DCB) - - - 197 197

Sub-total transactions with owners - - - 197 197

Transfers betw een equity


Estimated closing balance as at 30 June

2016 (1,883) 40 - 3,856 2,013



Australian Government (1,883) 40 - 3,856 2,013



255


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


Cash received

Appropriations 5,452 4,925 4,913 4,961 5,011

Other 190 100 100 100 100


Cash used

Employees 3,226 3,415 3,650 3,724 3,771

Suppliers 1,962 1,608 1,362 1,337 1,340

Other - 2 1 - -

Total cash used 5,188 5,025 5,013 5,061 5,111


operating activities 454 - - - -


Cash received

Other - - - - -


Cash used


equipment 190 197 195 204 205

Total cash used 190 197 195 204 205


investing activities (190) (197) (195) (204) (205)


256


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


Cash received

Contributed equity - 197 195 204 205

Total cash received - 197 195 204 205

Cash used

Other - - - - -



financing activities - 197 195 204 205


held 264 - - - -







257


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


Capital budget - Bill 1 (DCB) - 197 195 204 205

Total new capital appropriations - 197 195 204 205

Provided for:

Purchase of non-financial assets - 197 195 204 205

Total Items - 197 195 204 205


ASSETS

Funded by capital appropriations1- - - - -


DCB2190 197 195 204 205

TOTAL 190 197 195 204 205



MOVEMENT TABLE

Total purchases 190 197 195 204 205

Total cash used to acquire assets 190 197 195 204 205





- gifts






258


Buildings

$'000

Other property,

plant and

equipment

$'000

Computer

software and

intangibles

$'000

Total

$'000


Gross book value 1,149 401 2,838 4,388Accumulated


impairment (601) (203) (1,080) (1,884)

Ope ning ne t book ba la nc e 5 4 8 19 8 1,7 5 8 2 ,5 0 4




By purchase - appropriation ordinary

annual services1

- - 197 197

Tota l a dditions - - 19 7 19 7

Othe r move me nts


Tota l othe r move me nts (2 3 0 ) (5 9 ) (3 4 4 ) (6 3 3 )

As a t 3 0 June 2 0 16

Gross book value 1,149 401 3,035 4,585

Accumulated


impairment (831) (262) (1,424) (2,517)

Closing ne t book ba la nc e 3 18 13 9 1,6 11 2 ,0 6 8

1 "Appropriation ordinary annual services" refers to funding provided through Appropriation Bill (No.1) 2015–16 for depreciation / amortisation expenses, DCBs or other operational expenses.



259


WGEA has no income and expenses administered on behalf of government. For this reason Table 3.2.7 is not presented.


WGEA has no administered assets and liabilities. For this reason Table 3.2.8 is not presented.


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.


WGEA has no administered non-financial assets. For this reason Table 3.2.11 is not presented.


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.

Glossary

261

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.

Glossary

262

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

http://www.comlaw.gov.au/Series/C2013A00123





http://www.finance.gov.au/resource-management/introduction/

http://www.finance.gov.au/resource-management/introduction/

Glossary

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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.

http://www.finance.gov.au/resource-management/governance/#flipchart

employment portfolio · the purpose of the 2015–16 portfolio budget statements (pb statements) is...

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