Industry, tourism and resources portfolio

PORTFOLIO BUDGET STATEMENTS 2004-05

INDUSTRY, TOURISM AND RESOURCES PORTFOLIO

BUDGET INITIATIVES AND EXPLANATIONS OF APPROPRIATIONS SPECIFIED BY OUTCOMES AND OUTPUTS BY AGENCY

BUDGET RELATED PAPER NO. 1.13

© Commonwealth of Australia 2004

ISBN 0 642 72221 8

ITR No. 2004/051

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The Hon Ian Macfarlane MP Minister for Industry, Tourism and Resources

PARLIAMENT HOUSE CANBERRA ACT 2600

Senator the Hon Paul Calvert President of the Senate Australian Senate Parliament House CANBERRA ACT 2600

The Hon Neil Andrew MP Speaker House of Representatives Parliament House CANBERRA ACT 2600

Dear Mr President Dear Mr Speaker

I hereby submit the Portfolio Budget Statements in support of the 2004-05 Budget for the Industry, Tourism and Resources Portfolio.

These statements have been developed, and are submitted to the Parliament, as a statement on the outcomes for the portfolio. They also cover the purpose of portfolio budget measures.

I present these statements by virtue of my Ministerial responsibility for accountability to the Parliament and, through it, the public.

Yours sincerely

Ian Macfarlane

TABLE OF CONTENTS

PART A: USER GUIDE ............................................................................. 1

User Guide..................................................................................................................................3 Introduction ....................................................................................................................3 Structure of the Portfolio Budget Statements.............................................................3 Explanation of budgeted financial statements ...........................................................4 Styles and conventions used.........................................................................................7 Enquiries..........................................................................................................................7

PART B: PORTFOLIO OVERVIEW............................................................... 9

Portfolio Overview..................................................................................................................11 Changes to the portfolio since the 2003-04 Portfolio Budget Statements .............12

Major Objectives and Planned Achievements.....................................................................14 Department of Industry, Tourism and Resources ...................................................14 IP Australia....................................................................................................................18 Geoscience Australia....................................................................................................18 National Offshore Petroleum Safety Authority .......................................................20 Australian Tourist Commission.................................................................................19

Allocation of Portfolio Resources..........................................................................................21

Portfolio Structure Chart ........................................................................................................23

Portfolio Outcomes Chart.......................................................................................................24

PART C: AGENCY BUDGET STATEMENTS ................................................ 25

Department of Industry, Tourism and Resources...............................................................27 Section 1: Overview, appropriations and budget measures summary.................29 Section 2: Outcomes and outputs information.........................................................39 Section 3: Budgeted financial statements..................................................................62 Section 4: Purchaser-provider and cost recovery arrangements............................82

IP Australia...............................................................................................................................89 Section 1: Overview, appropriations and budget measures summary.................91 Section 2: Outcomes and outputs information.........................................................95 Section 3: Budgeted financial statements................................................................102 Section 4: Purchaser-provider and cost recovery arrangements..........................113

Geoscience Australia.............................................................................................................115 Section 1: Overview, appropriations and budget measures summary...............117 Section 2: Outcomes and outputs information.......................................................122 Section 3: Budgeted financial statements................................................................131 Section 4: Purchaser-provider and cost recovery arrangements..........................146

National Offshore Petroleum and Safety Authority.........................................................149 Section 1: Overview, appropriations and budget measures summary...............151 Section 2: Outcomes and outputs information.......................................................156 Section 4: Purchaser-provider and cost recovery arrangements..........................160

Australian Tourist Commission ..........................................................................................163 Section 1: Overview, appropriations and budget measures summary...............165 Section 2: Outcomes and outputs information.......................................................171 Section 3: Budgeted financial statements................................................................180 Section 4: Purchaser-provider and cost recovery arrangements..........................191

GLOSSARY ........................................................................................... 193 INDEX .................................................................................................. 197
PART A: USER GUIDE
USER GUIDE

Introduction

The purpose of the 2004-05 Portfolio Budget Statements (PB Statements) is to inform Senators and Members of Parliament of the proposed allocation of resources to Government outcomes by agencies within the portfolio. Agencies receive resources from the annual appropriations bills, special appropriations, standing appropriations (including 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 2004-05 (or Appropriation Bill [Parliamentary Departments] No. 1 2004-05 for the parliamentary departments). In this sense the PB Statements are officially a Budget Related Paper and are declared by the Appropriation Bills to be a “relevant document” to the interpretation of the Bills according to section 15AB of the Acts Interpretation Act 1901.

The PB Statements provide sufficient information, explanation and justification to enable Parliament to understand the purpose of each outcome proposed in the Bills.

Structure of the Portfolio Budget Statements

The PB Statements are presented in three parts as outlined below.

Part A: User Guide

Provides an introduction explaining the purpose of the PB Statements as well as information relating to the structure of the document, and the styles and conventions used.

Part B: Portfolio Overview

Provides a brief overview of the portfolio. Portfolio outcomes are depicted in a chart that outlines the structure of the outcomes to which the portfolio contributes.

Part C: Agency Budget Statements

For each agency within the portfolio, a budget statement is presented under the name of the agency. These are presented in four sections, as outlined on the following page.

Section 1: Overview, appropriations, and budget measures summary

Section 1 provides a brief overview of the agency, details agency appropriations and summarises, where applicable, Budget measures. This section describes the link between the resources appropriated and their application to the outputs the agency delivers to contribute to the achievement of specified outcomes. Similarly, there is a description of the link between resources appropriated and their application to the administered items the agency manages on behalf of Government to contribute to the achievement of specified outcomes.

Section 2: Outcomes and outputs information

Section 2 provides a brief description of the specified outcomes and, where applicable, Budget measures. The section also provides details of resourcing, outlining both of the administered and departmental appropriations, how the outputs contribute to the outcome, performance information for the outcome, outputs and administered items, and planned evaluations. Upcoming competitive tendering and contracting that is of a material or sensitive nature is noted here.

Section 3: Budgeted financial statements

Section 3 contains the budgeted financial statements in accrual format covering the Budget year, the previous year and the three out-years for each agency.

Section 4: Purchaser-provider and cost recovery arrangements

Section 4 is presented in two parts. The first part discloses, where relevant, purchaser-provider arrangements that the agency has entered into with other agencies. The second part discloses, where relevant, cost recovery arrangements according to the Australian Government Cost Recovery Policy, and a summary of the agency’s Cost Recovery Impact Statement, where applicable.

Explanation of budgeted financial statements

Under the Australian Government’s accrual-based budgeting framework, and consistent with Australian Accounting Standards, transactions that agencies control (“Departmental” transactions) are separately budgeted for and reported on from transactions agencies do not have control over (“Administered” transactions). This ensures that agencies are only held fully accountable for the transactions over which they have control.

• 
  Departmental items are those assets, liabilities, revenues and expenses in relation to an agency or authority that are controlled by the agency. Departmental expenses include employee and supplier expenses and other administrative costs, which are incurred by the agency in providing its goods and services.
  
• 
  Administered items are revenues, expenses, assets and liabilities that are managed by an agency or authority on behalf of the Government according to set Government directions. Administered expenses include subsidies, grants and personal benefit payments and Administered revenues include taxes, fees, fines and excises.
  

Departmental financial statements

The following financial statements are presented for each agency:

Table 3.1: Budgeted Departmental Statement of Financial Performance

This statement provides a picture of the expected financial results for the agency by identifying full accrual expenses and revenues, which highlights whether the agency is operating at a sustainable level.

Table 3.2: Budgeted Departmental Statement of Financial Position

This statement shows the financial position of the agency. It helps decision makers to track the management of the agency’s assets and liabilities.

Table 3.3: Budgeted Departmental Statement of Cash Flows

Budgeted cash flows, as reflected in the statement of cash flows, provide important information on the extent and nature of cash flows by categorising them into expected cash flows from operating activities, investing activities and financing activities.

Table 3.4: Departmental Capital Budget Statement

This statement shows all planned Departmental capital expenditure (capital expenditure on non-financial assets), funded either through capital appropriations for additional equity or borrowings, or internally from Departmental resources.

Table 3.5: Departmental Non Financial Assets — Summary of Movement

This statement shows budgeted acquisitions and disposals of non-financial assets during the Budget year.

Schedules of administered activity

Details of transactions administered by agencies on behalf of the Australian Government are presented in the following schedules of administered activity:

Table 3.6: Schedule of Budgeted Revenues and Expenses Administered on behalf

of Government

This schedule identifies the main revenues and expenses administered on behalf of the Government.

Table 3.7: Schedule of Budgeted Assets and Liabilities Administered on behalf of Government

This schedule shows the assets and liabilities administered on behalf of the Government.

Table 3.8: Schedule of Budgeted Administered Cash Flows

This schedule shows cash flows administered on behalf of the Government.

Table 3.9: Schedule of Administered Capital Budget

This schedule shows details of planned administered capital expenditure.

Table 3.10: Schedule of Administered Non-financial Assets — Summary of Movement

This table discloses details of movements in administered non-financial assets.

Other features of the accrual budgeting framework

Explanations of other key features of the Australian Government’s accrual budgeting framework are provided below:

Appropriations in the accrual budgeting framework

Under the Australian Government’s accrual budgeting framework, separate annual appropriations are provided for:

• 
  Departmental price of outputs appropriations: representing the Government’s funding for outputs from agencies;
  
• 
  Departmental capital appropriations: for investments by the Government for either additional equity or loans in agencies;
  
• 
  Administered expense appropriations: for the estimated Administered expenses relating to an existing outcome, a new outcome or a Specific Purpose Payment to the States; and
  
• 
  Administered capital appropriations: for increases in Administered equity through funding non-expense Administered payments.
  

Special appropriations fund the majority of payments from the Consolidated Revenue Fund (especially those that are entitlement driven or involve transfers to State governments).

Administered investments in controlled entities

Each Australian Government department is required to show an Administered investment in each Commonwealth Authority and Company Act 1997 (CAC Act) entity within their portfolio. These Administered investments should be valued at the Australian Government’s ownership interest in the net assets of those CAC entities, fixed at a notional acquisition date of 30 June 1997.

Asset valuation

From 1 July 2002, Australian Government agencies and authorities are required to use either the “cost” basis or the “fair value” basis to measure property, plant and equipment. The shift from the “deprival method” of valuation to “fair value” should occur gradually over a three-year period. “Fair value” essentially reflects the current market value of an asset.

Styles and conventions used

(a) The following notation may be used:

-nil na not applicable (unless otherwise specified) $m $ million $b $ billion

(b) 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.

(c) A Glossary is provided at the end of the document.
Enquiries

Should you have any enquiries regarding this publication please contact:

The Manager, Coordination Unit Ministerial and Coordination Group Department of Industry, Tourism and Resources GPO Box 9839 CANBERRA ACT 2601 Telephone: [phone] Facsimile: [phone]

A copy of this document can be located on the Australian Government Budget website at: http://www.budget.gov.au