This section analyses the financial performance of the Attorney-General's Department for the year ended 2020.
4.1 Expenses (excluding employee benefits expenses)
Goods and services supplied or rendered
Audit fees - internal
Audit fees - Australian National Audit Office
Information technology and communications
Legal fees 1
Payments and contributions to external bodies
Training and professional development
Total goods and services supplied or rendered
Total goods and services supplied or rendered
Operating lease rentals 2
Workers compensation expenses
Payroll tax - Australian Government Solicitor
Total other suppliers
The department has short-term lease commitments of $26.002m at 30 June 2020.
The above lease disclosures should be read in conjunction with the accompanying notes 4.1C, 6.2A and 6.4A.
Short-term leases and leases of low-value assets
The department has elected not to recognise right-of-use assets and lease liabilities for short-term leases of assets that have a lease term of 12 months or less and leases of low-value assets (less than $10,000). The department recognises the lease payments associated with these leases as an expense on a straight-line basis over the life of lease.
4.1C: Finance costs
Interest on lease liabilities
Unwinding of discount
Total finance costs
All borrowing costs are expensed as incurred.
4.1D: Write-down and impairment of assets and other expenses
Write-down of property, plant and equipment
Act of grace payments
Resources provided free of charge 1
Total write-down and impairment of assets and other expenses
4.1E: Income tax expense/(benefit)
Competitive neutrality - Australian Government Solicitor
The Australian Government Solicitor section of the department provided services on a for-profit basis up to 30 June 2019 and was subject to the Australian Government’s Competitive Neutrality Policy. The above amounts have been calculated as being payable to the Australian Government in the form of company income tax under the Income Tax Assessment Acts had they applied. These amounts have been paid or are payable by the department to the Official Public Account.
4.2 Revenue and gains
4.2A: Revenue from contracts with customers
OWN SOURCE REVENUE
Revenue from contracts with customers
Sale of goods
Rendering of services
Total revenue from contracts with customers
Major product/service line:
Type of customer:
Australian Government entities (related parties)
State and Territory Governments
Timing of transfer of goods and services:
Point in time
Revenue from the sale of goods is recognised when control has been transferred to the buyer.
The following is a description of principal activities from which the department generates its revenue:
- The majority of AGS revenue consists of fees for the provision of legal services. AGS also has a number of small additional streams including revenue from training programs. The bulk of AGS services are provided to Commonwealth entities. AGS also provides legal services to a number of other clients including universities and state and local governments. As the majority of AGS customers are within the Commonwealth, collection risks are minimal
- The department also receives revenue in the form of annual subscriptions from Commonwealth entities to access the Whole of Government Legal Services Panel.
The transaction price is the total amount of consideration to which the department expects to be entitled in exchange for transferring promised goods or services to a customer. The consideration promised in a contract with a customer may include fixed amounts, variable amounts, or both.
Receivables for goods and services, which have 30-day terms, are recognised at the nominal amounts due less any impairment allowance account. Collectability of debts is reviewed during the financial year and at end of the reporting period. Impairment allowances are made when collectability of the debt is no longer probable.
4.2B: Other revenue
Resources received free of charge - Australian National Audit Office 1
4.2C: Other gains
Assets first recognised
AGS impairment of financial instruments
Resources received free of charge
Resources received free of charge are recognised as gains when, and only when, a fair value can be reliably determined and the services would have been purchased if they had not been donated. Use of those resources is recognised as an expense.
Resources received free of charge are recorded as either revenue or gain depending on their nature.
Contributions of assets at no cost of acquisition or for nominal consideration are recognised as gains at their fair value when the asset qualifies for recognition, unless received from another Government agency or authority as a consequence of a restructuring of administrative arrangements (Refer Note 9.2).
4.2D: Revenue from Government - departmental appropriations
Revenue from Government - departmental appropriations
Revenue from Government
Amounts appropriated for departmental outputs for the year (adjusted for any formal additions and reductions) are recognised as revenue from Government when the department gains control of the appropriation, except for certain amounts that relate to activities that are reciprocal in nature, in which case revenue is recognised only when it has been earned.
Appropriations receivable are recognised at their nominal amounts.