The Australian National Audit Office issued an unmodified audit opinion for the financial statements.

Under the Administrative Arrangements Order of 29 May 2019 (AAO) industrial relations functions were transferred from the former Department of Employment, Skills, Small and Family Business. Employees associated with these functions and programs transferred to the department on 25 July 2019. This has contributed towards increases in the department’s expenditure and revenue from government for both departmental and administered items in the 2019-20 financial year.

A summary of the department’s financial performance for departmental activities and activities administered on behalf of the government is provided below.

Departmental activities

The departmental operating result for 2019–20 was a deficit of $7.612m compared to a surplus of $5.623 million in 2018–19. After adjustment for unfunded depreciation of $10.867 million, the underlying result is a surplus of $3.255 million primarily due to a strong performance by the Australian Government Solicitor over the financial year and the timing of implementing budget measures.

Activities administered on behalf of the Australian Government

The total administered expenses for 2019–20 was $897.952 million compared to $413.222 million in 2018–19. The major expenses in 2019–20 include $385.543 million in grant payments, $147.349 million in subsidies associated with the Coal Mining Industry (Long Service Leave Funding) Corporation, $99.485 million for the royal commissions including legal assistance for witnesses and $22.497 million of appropriation paid to corporate entities within the portfolio.

The total administered revenue for 2019–20 includes levies of $147.349 million for the Coal Mining Industry (Long Service Leave Funding) Corporation and personal benefit recoveries of $137.625 million for the Fair Entitlements Guarantee Act 2012. Both of these functions were transferred to the department under the AAO mentioned above.