Industry, tourism and resources portfolio

1. 
   Cells C1 and E1 refer to information provided in Table 2.1.1 (Total resources for outcome 1). Amount K1 refers to Table 3.1 (Budgeted Statement of Financial Performance).
   
2. 
   Under the appropriation structure, Bill No. 2 includes specific purpose payments (SPPs), new agency outcomes (NAOs), administered capital and departmental capital via departmental injections and loans.
   
3. 
   Refer to Budgeted Statement of Financial Performance for application of agency revenue.
   
4. 
   Revenue from other sources includes revenue from government (for example, resources free of charge) and revenue from other sources (for example charges for
   

intellectual property services). Non-appropriated departmental and administered revenues are detailed in Table 1.3 (Revenue from independent sources). *Note: Percentage figure indicates the percentage contribution of Revenue from Government (Departmental Appropriations) to the Total Price of Outputs.

92

MEASURES — AGENCY SUMMARY

There are no measures in the 2004-05 Budget specifically relating to IP Australia.

REVENUE FROM INDEPENDENT SOURCES

Table 1.3 (below) summarises estimated revenue from independent sources in 2003-04 and 2004-05.

Charges for Intellectual Property services	Estimated revenue 2003-04$’000 88,562	Estimated revenue 2004-05 $’000 90,642
Total estimated revenue	88,562	90,642

Revenue from independent sources is included in Table 2.1.1 (Total resources for outcome 1) on page 98.

IP Australia operates on a cost recovery basis and all revenue from independent sources are due to cost recovery arrangements. Refer to page 113 for additional information on the application of cost recovery policy in IP Australia.

MOVEMENT OF ADMINISTERED FUNDS FROM 2003-04 TO 2004-05

There are no administered funds relating to the operations of IP Australia.

SPECIAL APPROPRIATIONS

There are no special appropriations relating to the operations of IP Australia.

SPECIAL ACCOUNTS

IP Australia uses a special account established under section 20 of the Financial Management and Accountability Act 1997 (the FMA Act) to spend the revenue it receives from charges for intellectual property services.

Table 1.6: Estimates of special account flows and balances

Estimate - 2004-05, Heavy Figures

	2004-05 (1) 2003-04 $'000	2004-05 2003-04 $'000	2004-05 2003-04 $'000	2004-05 2003-04 $'000	2004-05 2003-04 $'000
IP Australia Special Account - FMA Act (D)	1,500 2,202	92,853 91,940	92,853 92,642	0 0	1,500 1,500
Other Trust Monies Account - FMA Act (D)	361 361	4,500 4,430	4,500 4,430	0 0	361 361
Total Special Accounts	1,861 2,563	97,353 96,370	97,353 97,072	0 0	1,861 1,861

D = Departmental

1: The opening balance for 2004-05 is the same as the closing balance for 2003-04.

2: Receipts from appropriations and other sources are further specified in Table 2.1.1 (Total resources for outcome 1).

ADMINISTERED CAPITAL AND DEPARTMENTAL EQUITY INJECTIONS AND LOANS

There are no administered capital, departmental equity injections or loans relating to IP Australia for 2004-05.

Section 2: Outcomes and outputs information

OUTCOMES AND OUTPUTS

IP Australia works to achieve one outcome specified by Government. The following section provides an agency overview and a description of the outcome. The chart below shows the relationship between the outcome and the contributing outputs for IP Australia.

Financial details for outcome 1 appear in Table 2.1.1 (on page 98) while performance information is contained in Table 2.2.1 (on pages 99 - 101).
Output cost attribution

IP Australia uses activity based costing to allocate resources to the five outputs: Patents, Trade Marks, Designs, Public Information and Awareness, and Program Development. The full cost of these outputs is made visible through the use of cost driver data to trace resources through defined activities and onto each output.

The cost drivers describe the relationship between direct staff costs, support costs (accommodation, IT infrastructure and applications, contractor/consultancy costs) and activities undertaken for the effective delivery of the outputs. Indirect costs (including effort on financial reporting, human resources management and corporate support) are allocated to activities directly linked to delivery of the outputs. Output costs are derived in accordance with the activity based costing model from the total direct costs for each output plus allocated indirect costs.

The activity based costing model is reviewed quarterly and will be updated to reflect the IP Australia cost recovery review.

Changes to outcomes and outputs

There are no changes to IP Australia’s outcome and outputs structure for 2004-05.

OUTCOME 1 — DESCRIPTION

Australians benefit from the effective use of intellectual property, particularly through increased innovation, investment and trade

An important objective of IP Australia is to improve the awareness of Australians about the importance of intellectual property. Consistent with this objective, IP Australia undertakes a range of educational awareness activities including promoting intellectual property to small business, encouraging educational institutions to incorporate intellectual property education as part of their curricula, and developing educational material which is available in a variety of media formats.

A sound intellectual property protection regime in Australia gives potential investors confidence that the value of their new technologies and products will not be threatened by unauthorised use. At the same time, Australia gains access to the latest products and processes that make our industries more productive and enhance the well-being of Australians.

To ensure improved access for Australians to intellectual property protection worldwide, IP Australia is also active in the development of the international intellectual property system.

MEASURES AFFECTING OUTCOME 1¹

There are no measures in the 2004-05 Budget specifically relating to IP Australia.

1 This relates to measures disclosed in the 2004-05 Budget context (that is, measures agreed since the Mid-Year Economic and Fiscal Outlook (MYEFO)).

OUTCOME 1 — RESOURCING

Table 2.1.1 shows how the 2004-05 Budget appropriations translate to total resourcing for outcome 1, including administered expenses, revenue from government (appropriation), revenue from other sources, and the total price of outputs. Cell references C1 and E1 show the links back to Table 1.1 (Appropriations and other revenue).

Estimated		Budget
actual		estimate
2003-04		2004-05
$'000		$'000
Administered appropriations
Total administered appropriations	­	-
Departmental appropriations (paid into Special Account s20 FMA Act)
Output 1 Patents	627	638
Output 2 Designs	29	30
Output 3 Trade marks	327	334
Output 4 Public Information and Awareness	17	17
Output 5 Program Development	49	50
Total revenue from government (appropriations)	1,049	1,069 (C1)
Contributing to price of departmental outputs	1%	1%
Revenue from other sources (paid into Special Account s20 FMA Act)
Output 1 Patents	55,494	56,571
Output 2 Designs	917	926
Output 3 Trade marks	31,551	32,582
Output 4 Public Information and Awareness	213	213
Output 5 Program Development	387	350
Total revenue from other sources	88,562	90,642
Total price from departmental outputs
(Total revenue from government and from other sources)	89,611	91,711 (E1)
Cost of Outputs (paid out of Special Account s20 FMA Act)
Output 1 Patents	53,457	54,705
Output 2 Designs	2,491	2,549
Output 3 Trade marks	27,939	28,592
Output 4 Public Information and Awareness	1,453	1,487
Output 5 Program Development	4,171	4,268
Total Price of Outputs	89,511	91,601