Go to top of page

2. Income and Expenses Administered on Behalf of Government

This section analyses the activities that the Australian Financial Security Authority does not control but administers on behalf of the Government. Unless otherwise noted, the accounting policies adopted are consistent with those applied for departmental reporting.

2.1. Administered - Expenses

Note 2.1A: Impairment Loss on Financial Instruments

2020

$'000

2019

$'000

Impairment allowance

14,969

125

Bad debts

141

332

Total impairment loss on financial instruments

15,110

457

Note 2.1B: Payments Made Through Special Accounts

2020

$'000

2019

$'000

Official Trustee management fees

284

284

Program payments

60,977

47,445

Payments to Official Trustee

202

13

Transcription services

754

611

Restitution payments

3,691

3,079

Legal Aid commission payments

125

593

Total other expenses

66,033

52,025

Accounting Policy

Impairment

A provision for impairment of PPOs is recognised when there are no assets identified as available for realisation an application to the PPO debt. This accounting treatment in no way impacts the legal liability of the defendant to pay the PPO debt, nor the ability of the Official Trustee to receive instructions at a subsequent time to realise property for application to the PPO debt.

Payments made through Special Accounts

Section 297 of the Proceeds of Crime Act 2002 specifies permitted payments from the Confiscated Assets Account maintained by AFSA. Program payments are made pursuant to written Ministerial orders and are used for crime prevention or law enforcement initiatives, or for measures related to diversion from illegal drug use including treatment. Restitution payments are payments the Commonwealth is directed to make by an order pursuant to section 297(fa) of the Proceeds of Crime Act 2002.

2.2. Administered - Income

Revenue

Note 2.2A: Charges

2020

$'000

2019

$'000

Taxation Revenue

Realisations charge

38,621

37,217

Interest charge

190

538

Total charges

38,811

37,755

Accounting Policy

Charges revenue relates to levies on asset realisations and interest paid by the Official Trustee and Registered Practitioners. Registered Practitioners were required to lodge Annual Administration Returns by 4 August 2020 for the 2019–20 financial year. AFSA recognises charges revenue based on amounts paid by the Official Trustee and Annual Administration Return lodgements.

Note 2.2B: Fees and Fines

2020

$'000

2019

$'000

Non-Taxation Revenue

Pecuniary Penalty Orders

198

535

Forfeiture Orders

37,695

63,782

Official Trustee fees

11,776

11,647

NPII search fees

5,578

5,803

Bankruptcy notice fees

2,201

3,275

Debt agreement proposal fees

1,830

2,649

Other

1,839

2,119

Total fees and fines

61,117

89,810

Accounting Policy

Administered Revenue

All administered revenues are revenues that relate to ordinary activities performed by AFSA on behalf of the Australian Government. As such, administered appropriations are not revenues of the individual entity that oversees distribution or expenditure of the funds as directed.

Fees and Fines

Fees for activities performed by AFSA under the Bankruptcy Act 1966 and Proceeds of Crime legislation are outlined in the Cost Recovery Impact Statements referred to in note 5.3.

PO’s and Forfeiture Orders are statutory revenues recorded and collected by AFSA on behalf of the Commonwealth.

Note 2.2C: Interest

2020

$'000

2019

$'000

Interest on Common Investment Fund Equalisation Account

181

285

Total interest

181

285