Financial performance update
This section should be read in conjunction with the ATSB’s audited financial statements for 2019–20 that appear in section 6 of this report.
The ATSB operates as a separate non-corporate Commonwealth entity, having been established on 1 July 2009. The main assets of the ATSB were transferred from the (then) Department of Infrastructure and Regional Development and include plant and equipment, specialised technical assets and intangible software assets.
The ATSB recorded a deficit of $0.84 million for 2019–20, compared to a deficit of $0.64 million in 2018–19. Excluding depreciation and amortisation, the ATSB realised an underlying deficit of $0.04 million which compares to a $0.06 million surplus in 2018–19.
The ATSB’s new capital requirements are detailed in its Departmental Capital Budget published in the 2018–19 Portfolio Budget Statements. Over time, the ATSB’s estimated capital injections fall short of the deficits associated with the non-funding of depreciation and amortisation. Without adequate capital injections by the Government, this presents a challenge to the ATSB in maintaining its underlying equity and asset capability going forward.
The Government no longer provides appropriation funding to cover non-cash expenses of depreciation and amortisation to non-corporate Commonwealth entities. In the absence of revenue for depreciation and amortisation, the ATSB and other non-corporate entities are more likely to deliver a negative operating result or deficit, and these will accumulate. Offsetting this build-up of retained deficits requires a commitment by the Government to provide annual capital injections to meet new capital requirements.
Table 5: Summary of financial performance and position
Revenue from Government
Depreciation and amortisation
Net Assets – A + B – C