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Results against purpose: increasing productivity

Performance criterion

Implementation of the Government’s financial sector reform agenda.

Target

Key milestones and compliance requirements met.

Source

Corporate Plan 2017-18, page 5.

Results

In its response to the Financial System Inquiry, the Government outlined a program to position the financial system to respond to the challenges and opportunities of the future. That agenda has also been expanded, including a banking competition and accountability package, which was announced in the 2017-18 Budget.

The Government’s financial system program is being implemented in stages, and most priority measures have been either fully implemented or are in an advanced stage of development. Fourteen of the 48 Financial System Inquiry measures have already been completed, with a further nine recommendations substantially progressed, and legislation before the Parliament on five measures.

The Treasury conducted several consultations on measures relating to the financial system reform agenda and other initiatives. This included roundtables on the proposed Asia Region Funds Passport, the Open Banking Review, the Corporate Collective Investment Vehicle Bill, the transition to the new Australian Financial Complaints Authority, and the Comprehensive Credit Reporting reforms.

Thirteen Bills relating to the financial system and two Bills relating to corporations received Royal Assent.

Performance criterion

Advice to facilitate foreign investment to support economic growth will be high quality and address national interest concerns.

Target

Performance will be measured by the Regulator Performance Framework key performance indicators.

Source

Corporate Plan 2017-18, page 5.

Results

The Treasury provided regular briefings to the Government on foreign investment policy. Preliminary stakeholder feedback from the 2017-18 Regulator Performance Framework (RPF) stakeholder survey has been positive and indicates that stakeholders are satisfied with the quality of advice they receive. The RPF for 2017-18 is scheduled to be published by December 2018.

The Treasury conducts a comprehensive assessment of foreign investment proposals to help facilitate foreign investment while ensuring national interest concerns are managed. When assessing foreign investment proposals of national significance, the Treasury consults with federal, state and territory government departments and security agencies. In addition, the Treasury works closely with the Critical Infrastructure Centre to manage risks to critical infrastructure assests.

The Treasury has an ongoing program of stakeholder engagement and outreach activities with potential investors and sectors.

Performance criterion

Assessing foreign investment proposals.

Target

Number of proposals assessed.

Number of significant (complex) cases and the degree of the Government’s satisfaction with our performance in managing the cases.

Source

Portfolio Budget Statements 2017-18, Program 1.1, page 38.

Results

Approximately 800 foreign investment proposals were assessed by the Treasury. Of these, 182 proposals decided were considered to be significant with approximately 24 of those valued at or over a billion dollars. The majority of non‑complex cases were processed within the 30 day statutory period. Further information will be available in the 2017-18 Foreign Investment Review Board Annual Report.

Performance criterion

Progress of the Government’s regulatory reform agenda.

Progressing the implementation of the Government’s deregulation agenda, particularly by reducing red tape.

Target

Performance will be measured by compliance with the regulatory impact analysis requirements; reduction of portfolio red tape on a net basis; and portfolio regulators’ compliance with their Regulator Performance Framework requirements.

Reductions in red tape are consistent with the Government’s target.

Source

Corporate Plan 2017-18, page 5.

Portfolio Budget Statements 2017-18, Program 1.1, page 38.

Results

The Treasury continues to progress productivity-enhancing regulatory reforms through its implementation of the Government’s regulatory reform agenda. All 12 published Treasury Regulation Impact Statements were rated as compliant. The Treasury portfolio contributed a net reduction of $772.9 million towards the Government’s $1 billion annual red tape reduction target.

In the 2016-17 Budget, the Treasury received $5.6 million over three years for a Regulatory System Renewal program — a coordinated approach to regulatory reform delivered through a rolling series of reviews of regulatory frameworks.

Nine Treasury agencies and functions are subject to the RPF. Agencies were required to self‑assess their performance against the RPF metrics, validate their views with stakeholders and report to ministers. All nine Treasury bodies fulfilled the requirements of the RPF and reported to ministers for the 2016-17 financial year by the December 2017 deadline. All nine RPF reports have now been made public.

Performance criterion

Economic and productivity enhancing reforms are developed and progressed.

Target

Performance will be measured by long-term productivity trends.

Source

Corporate Plan 2017-18, page 5.

Results

The Treasury continued work on a range of economic and productivity enhancing reforms. Parliament passed a number of amendments including the:

  • Competition and Consumer Amendment (Misuse of Market Power) Act 2017, which strengthens the misuse of market power provision (section 46);
  • Competition and Consumer Amendment (Competition Policy Review) Act 2017, which contains further competition law amendments, including a prohibition on anti-competitive concerted practices and reforms to merger approval processes; and
  • The Treasury Laws Amendment Bill, which establishes the position of a Commissioner to oversee the work of the Productivity Commission in relation to the evaluation of policies and programs that impact Indigenous Australians.

In addition, Productivity Commission Regulations 2018 were signed by the Governor-General on 10 May 2018. The regulations remake the Productivity Commission Regulations 1998 and ensure their effect continues. The 2018 regulations set the open tender threshold for engaging consultants or independent advisers at $80,000, consistent with the Commonwealth Procurement Guidelines.

The Treasury also assisted the Treasurer to finalise the SBRRA project agreement with all jurisdictions except Queensland, as well as the first SBRRA bilateral schedules with New South Wales and Victoria.

Performance criterion

Appropriate assistance provided to enterprising people through the ASBAS program.

Target

25,000 additional services provided to enterprising people through the ASBAS program.

Source

Portfolio Budget Statements 2017-18, Program 1.1, page 40.

Results

The ASBAS program was on track to meet its targets as at 31 December 2017, with 15,804 services delivered during the period from 1 July 2017 to 31 December 2017.

Policy responsibility for the ASBAS program moved to the Department of Jobs and Small Business as a result of the Machinery of Government changes announced by the Prime Minister in December 2017.

Performance criterion

Tax and foreign investment measures are implemented in accordance with the Government’s plan to reduce pressure on housing affordability promptly.

Target

Measured by the achievement of agreed progress milestones.

Source

Corporate Plan 2017-18, page 5.

Results

The following measures from the Government’s plan to reduce pressure on housing affordability were implemented:

  • The First Home Super Saver Scheme (FHSSS) and the Downsizer measures passed through Parliament in December 2017, with contributions to the FHSSS being able to be made in the 2017-18 financial year;
  • The new National Housing and Homelessness Agreement commenced on 1 July 2018. By 1 July 2018, bilateral agreements had been signed with five jurisdictions (Queensland, South Australia , Tasmania, Northern Territory and Australian Capital Territory);
  • NHFIC commenced operations on 30 June 2018; and
  • The foreign investment-related measures from the 2017-18 Budget housing affordability package were both legislated.