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Department of Industry, Science, Energy and Resources Budget Variance Commentary - Administered for the year ended 30 June 2020

Explanations of major variances

The decrease in petroleum royalties was due to lower commodity prices, particularly for quarter four of 2019-20. This was primarily due to global price volatility attributable to the COVID-19 pandemic, as well as other supply and demand factor

Affected line items/statements

Schedule of Comprehensive Income - Royalties revenue ($58 million)

The variance in cash in special accounts relates to a change in accounting treatment for the security funds held in the Ranger Rehabilitation special account

Schedule of Comprehensive Income – Additional security funds ($454 million)

Statement of Assets and Liabilities – Cash in special accounts ($531 million)

New measure for fuel security (oil) was announced after finalisation of the 2019-20 PBS

Statement of Assets and Liabilities – Inventories ($86 million)

Recognition of loan commitment provision relating to the provision of loans at below-market interest rates (NAIF and PSMA loan programs)

Statement of Assets and Liabilities – Loan commitment provision ($58 million)