Note 1 Financial Performance
for the period ended 30 June 2020
This section analyses AFMA's financial performance for the year ended 30 June 2020.
Note 1.1 Expenses
Note 1.1A Employee benefits
Wages and salaries
Defined contribution plans
Defined benefit plans
Leave and other entitlements
Total employee benefits
Accounting policies for employee related expenses is contained in the People and relationships section.
Note 1.1B: Suppliers
Goods and services
Surveillance and compliance
Consultants and contractors
Travel and meetings
Information technology and communications
Training and development
Building repairs and outgoings
External audit fees provided free of charge
Total goods and services
Total goods and services supplied or rendered
Workers compensation expenses
Operating lease rental 1
Total other suppliers
AFMA does not have any short-term lease commitments as at 30 June 2020, however AFMA leases three properties on month-to-month arrangements.
The above lease disclosures should be read in conjunction with the accompanying notes 1.1C, 1.2B, 2.2A and 2.4A.
1AFMA has applied AASB 16 using the modified retrospective approach and therefore the comparative information has not been restated and continues to be reported under AASB 117.
Short-term leases and leases of low-value assets
AFMA 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). AFMA recognises the lease payments associated with these leases as an expense on a straight-line basis over the lease term.
Note 1.1C: Finance Costs
Lease Liabilities 1
Unwinding of Discount
Total finance costs
The above lease disclosures should be read in conjunction with the accompanying notes 1.1B, 1.2B, 2.2A and 2.4A.
1The Entity has applied AASB 16 using the modified retrospective approach and therefore the comparative information has not been restated and continues to be reported under AASB 117.
Note 1.1D: Write-Down and Impairment of Assets
Asset write-downs and impairments from:
Impairment of property, plant and equipment
Total write-down and impairment of assets
Note 1.1E: Impairment Loss Allowance on Financial Assets
Impairment on trade and other receivables 1
Total impairment on financial instruments
1In 2019-20 impairment loss included waiver of levy amounts to support Commonwealth fishers during Covid-19. Refer to overview for further details.
Note 1.2 Own Source Revenue
Note 1.2A: Sale of Goods and Rendering of Services
Rendering of services
Total sale of goods and rendering of services
Disaggregation of revenue from contracts with customers
Major product / service line:
Total sale of goods and rendering of services
Note 1.2B: Rental Income
Sublease - Thursday Island office
Sub-leasing right of use assets:
Sublease - Canberra office
Employee car parking
Total rental income
Leasing commitments receivable
AFMA in its capacity as a lessor sub-leases office accommodation on Thursday Island. All commitments are GST exclusive.
Commitments for minimum lease receipts in relation to non-cancellable operating leases are receivable as follows:
Within 1 year
One to two years
Two to three years
Total sub-lease commitments receivable
Note 1.2C: Interest
Note 1.2D: Levies and licence charges
Levies and licensing charge 1
Total levies and licence charges
1Levies and licensing charges comprise of cost recovered amounts credited to the AFMA Special Account in accordance with s94C of the Fisheries Administration Act 1991. For further information on AFMA's cost recovery arrangements refer to Note 4.3.
Note 1.3A: Revenue from Government
Special Appropriation (Coronavirus Economic Response Package) 1
Total revenue from Government
Reconciliation of Coronovirus Economic Response Package 2019-20
Levies and licensing charges per 2019-20 Levy Regulations
Levies and licensing charges for 2019-20 receipts collected
Difference represented by 2019-20 levy amounts waived
Act of grace payments
Total waivers and act of grace payments
Special Appropriation (Coronavirus Economic Response Package)
Net impact on AFMA cash reserves
1 In 2019-20 special appropriations also included Assistance for Severely Affected Regions (Special Appropriation) (Coronavirus Economic Response Package) Act 2020. Refer to overview and table below for details:
Revenue from Contracts with Customers
The following is a description of principal activities from which the AFMA generates its revenue: - Regulatory services which primarily consists of fees for services for observers, logbooks and licensing, vessel monitoring services provided to both industry and State Governments and other regulatory compliance services. Fees for services and compliance services are recognised over time based on actual costs incurred.- Other revenues which primarily consist of service contracts with related Commonwealth Government entities for enforcement and research activities. Other revenue enforcement activities are recognised either over time as expenses are incurred for each project. Research services are recognised at a point in time when milestones have been met.
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 at end of the reporting period. Allowances are made when collectability of the debt is no longer probable.
Revenue from Government
Amounts appropriated for departmental appropriations for the year (adjusted for any formal additions and reductions) are recognised as Revenue from Government when AFMA 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.
Resources received free of charge (RRFOC) 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. RRFOC are recorded as either revenue or gains depending on their nature.