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6. Funding

This section identifies the Treasury funding structure.

6.1 Appropriations

Note 6.1A: Annual Appropriations (‘Recoverable GST exclusive’)

Annual Appropriations for 2018

Appropriation Act

PGPA Act

Total appropriation

Appropriation applied in 2018 (current and prior years)

Annual Appropriation 1(a)

AFM

Section 74 Receipts

Section 75 Transfers 1(b)

Variance2

$’000

$’000

$’000

$’000

$’000

$’000

$’000

DEPARTMENTAL

Ordinary annual services1

197,218

-

21,306

(6,284)

212,240

(214,857)

(2,617)

Capital Budget3

8,246

-

-

-

8,246

(8,246)

-

Other services

-

-

Equity

4,750

-

-

-

4,750

(9)

4,741

Total departmental

210,214

-

21,306

(6,284)

225,236

(223,112)

2,124

ADMINISTERED

Ordinary annual services

Administered items2

36,295

-

-

(9,222)

27,073

(24,214)

2,859

Payments to Corporate

Commonwealth Entities

-

-

-

-

-

-

-

Other services

Administered assets and

liabilities

60,000

-

-

-

60,000

-

60,000

Total administered

96,295

-

-

(9,222)

87,073

(24,214)

62,859

  1. The difference between the departmental appropriation for ordinary annual services and revenue from Government in the Statement of Comprehensive Income relates to the following:

(a) Tax Integrity (Public Information Campaign) for which $4.2 million was recognised as revenue in 2016-17 (appropriation received in 2017-18); and

(b) Due to the Administrative Arrangement Order of 20 December 2017, $6.284 million was transferred to the Department of Jobs and Small Business under s75. The transfer has been recognised against the year in which appropriation related to (2018: $5.174 million, 2017: $1.110 million).

2. The variance in Ordinary annual services is driven by the use of prior periods appropriations available. The variance in Equity relates to the provision of funding to establish the National Housing Finance and Investment Corporation, which has not yet been fully utilised and will continue into 2018-19.

3. Departmental and Administered Capital Budgets are appropriated through Appropriation Acts (No.1 and 3). They form part of ordinary annual services, and are not separately identified in the Appropriation Acts.

Annual Appropriations for 2017

Appropriation Act

PGPA Act

Appropriation applied in 2017 (current and prior years)

Annual Appropriation

AFM

Section 74

Section 75

Total appropriation

Variance

$’000

$’000

$’000

$’000

$’000

$’000

$’000

DEPARTMENTAL

Ordinary annual services

169,352

-

17,769

-

187,121

(192,212)

(5,091)

Capital Budget

5,298

-

-

-

5,298

(5,298)

-

Other services

Equity

300

-

-

-

300

(300)

-

Total departmental

174,950

-

17,769

-

192,719

(197,810)

(5,091)

ADMINISTERED

Ordinary annual services

Administered items

44,739

-

-

-

44,739

(40,527)

4,212

Payments to Corporate

Commonwealth Entities

-

-

-

-

-

-

-

Other services

Administered assets and

liabilities

60,000

-

-

-

60,000

-

60,000

Total administered

104,739

-

-

-

104,739

(40,527)

64,212

Note 6.1B: Unspent Annual Appropriations (‘Recoverable GST exclusive’)

Authority

2018

2017

$’000

$’000

Departmental

Appropriation Act (No. 1) 2012-131

-

865

Appropriation Act (No. 2) 2012-131

-

208

Appropriation Act (No. 1) 2016-172

-

47,503

Appropriation Act (No. 1) 2017-18

51,073

-

Appropriation Act (No. 2) 2017-18 - Equity

4,741

Appropriation Act (No. 3) 2017-18

3,438

-

Total departmental

59,252

48,576

Authority

2018

2017

$’000

$’000

Administered

Appropriation Act (No. 1) 2012-133

-

2

Appropriation Act (No. 2) 2012-133

-

42,705

Appropriation Act (No. 2) 2013-143

-

47,101

Appropriation Act (No. 4) 2013-143

-

18

Appropriation Act (No. 1) 2016-17

11,581

11,581

Appropriation Act (No. 2) 2016-17

35,000

35,000

Appropriation Act (No. 3) 2016-174

-

3,502

Supply Act (No.1) 2016-17

1,258

1,258

Supply Act (No.2) 2016-17

25,000

25,000

Appropriation Act (No. 1) 2017-18

7

-

Appropriation Act (No. 2) 2017-18

60,000

-

Appropriation Act (No. 3) 2017-18

2,852

-

Total administered

135,698

166,167

  1. 2012-13 quarantined balances were repealed upon the Royal Assent of the Appropriation Act (No.4) 2017-18.
  2. Cash held amounts (2018: $0.640 million, 2017: $1.250 million) are included in Appropriation Act (No.1) for the relevant year.
  3. 2012-13 & 2013-14 Appropriations balances have been repealed in 2017-18.
  4. Appropriation Act (No. 3) 2016-17 was quarantined in 2017-18, and extinguished through a Movement of Funds at MYEFO, which was included in Appropriation Act (No. 3) 2017-18.

Note 6.1C: Special Appropriations (‘Recoverable GST exclusive’)

The following table lists current special appropriations contained in legislation that the Treasury is responsible for administering.

Authority

Appropriation applied

2018

2017

$’000

$’000

Asian Development Bank Act 1966

-

-

Asian Development Bank (Additional Subscription) Act 2009

(24,359)

(22,218)

Asian Infrastructure Investment Bank Act 2015

(194,135)

(197,142)

Clean Energy Finance Corporation Act 2012
(Limited amount; $2 billion in 2015-16)

-

-

Clean Energy Act 2011

-

-

Commonwealth Places (Mirror Taxes) Act 1998

(568,430)

(542,927)

European Bank for Reconstruction and Development Act 1990

-

-

Federal Financial Relations Act 2009

(87,728,904)

(81,403,179)

Financial Agreements (Commonwealth Liability) Act 1932

-

-

Financial Services Reform Act 2001

-

-

Guarantee Scheme for Large Deposits and Wholesale Funding Appropriation Act 2008

-

-

International Bank for Reconstruction and Development (General Capital Increase) Act 1989

-

-

International Bank for Reconstruction and Development (Share Increase) Act 1988

-

-

International Finance Corporation Act 1955

-

-

International Finance Institutions (Share Increase) Act 1982

-

-

International Finance Institutions (Share Increase) Act 1986

-

-

International Monetary Agreements Act 1947

(38,671)

(10,523)

Multilateral Investment Guarantee Agency Act 1997

-

-

Papua New Guinea Loans Guarantee Act 1975

-

-

Payment of Tax Receipts (Victoria) Act 1996

-

-

Public Governance, Performance and Accountability Act 2013

-

(2)

States (Works and Housing) Assistance Act 1984

-

-

States (Works and Housing) Assistance Act 1988

-

-

State Grants Act 1927

-

-

Superannuation Industry (Supervision) Act 1993

-

-

Terrorism Insurance Act 2003

-

-

Total

(88,554,499)

(82,175,991)

Note 6.1D: Disclosure by agent in relation to Annual and Special Appropriations (‘Recoverable GST exclusive’)

Department of Education

Department of Agriculture

Inspector-General

and Training

and Water Resources

of Taxation

Payments to the States and Territories:

Payments to the States and Territories:

Transaction service provider

education services

Water for the Environment Special Account

2018

$’000

$’000

$’000

Total receipts

19,485,333

100

-

Total payments

19,485,333

100

-

Department of Education

Department of Agriculture

Inspector-General

and Training

and Water Resources

of Taxation

Payments to the States and Territories:

Payments to the States and Territories:

Transaction service provider

education services

Water for the Environment Special Account

2017

$’000

$’000

$’000

Total receipts

18,139,055

-

6,683

Total payments

18,139,055

-

6,779

6.2 Special Accounts

Note 6.2A: Special Accounts (‘Recoverable GST exclusive’)

Actuarial Services Special Account1

Medicare Guarantee Fund (Treasury) Special Account2

Fuel Indexation Special Account3

COAG Reform Fund Special Account4

Services for Other Entities and Trust Money Special Account5

2018

2017

2018

2017

2018

2017

2018

2017

2018

2017

$’000

$’000

$’000

$’000

$’000

$’000

$’000

$’000

$’000

$’000

Balance brought forward from previous period

-

2,835

-

-

-

-

-

-

-

-

Increases

Appropriation for reporting period

-

-

34,774,894

-

385,000

275,000

10,183,250

12,091,256

-

-

Other receipts

-

221

-

-

-

-

878,255

365,253

1,642

-

Total increases

-

221

34,774,894

-

385,000

275,000

11,061,505

12,456,509

1,642

-

Available for payments

-

3,056

34,774,894

-

385,000

275,000

11,061,505

12,456,509

1,642

-

Decreases

Departmental

Payments made to employees

-

-

-

-

-

-

-

-

-

-

Payments made to suppliers

-

-

-

-

-

-

-

-

-

-

Transfer to Appropriation Act No. 1 2016-17

-

(3,056)

-

-

-

-

-

-

-

-

Total departmental

-

(3,056)

-

-

-

-

-

-

-

-

Administered

Payments made to States and Territories

-

-

-

-

(385,000)

(275,000)

(11,061,505)

(12,456,509)

-

-

Payments made to other entities

-

-

-

-

-

-

-

-

(1,642)

-

Transfers made to Medicare Guarantee Fund (Health) Special Account

-

-

(34,774,894)

-

-

-

-

-

-

Total administered

-

-

(34,774,894)

-

(385,000)

(275,000)

(11,061,505)

(12,456,509)

(1,642)

-

Total decreases

-

(3,056)

(34,774,894)

-

(385,000)

(275,000)

(11,061,505)

(12,456,509)

(1,642)

-

Total balance carried to the next period

-

-

-

-

-

-

-

-

-

-

Balance represented by

Cash held in entity bank accounts

-

-

-

-

-

-

-

-

-

-

Cash held in Official Public Account

-

-

-

-

-

-

-

-

-

-

Total balance carried to the next period

-

-

-

-

-

-

-

-

-

-

  1. Legal authority: Initially Financial Management and Accountability Determination 2006/34 — Actuarial Services Special Account Establishment 2006, taken to have been made under subsection 78(1) of the Public Governance, Performance and Accountability Act 2013.

Purpose: Providing actuarial services and advice.

Note: Actuarial Services Special Account was established on 1 October 2006. This special account determination was sunset on 1 October 2016.

2. Appropriation: Public Governance, Performance and Accountability Act 2013, section 80.

Establishing instrument: Medicare Guarantee Act 2017, section 6

Purpose: The Medicare Guarantee Act 2017 (the Act) is to secure ongoing funding of the Medical Benefits Schedule (MBS) and Pharmaceutical Benefits Scheme (PBS).

The Act establishes the Medicare Guarantee Fund (MGF), which consists of the Medicare Guarantee Fund (Treasury) Special account (Treasury Special Account) and the Medicare Guarantee Fund (Health) Special Account (Health Special Account). The Treasury Special Account is administered by the Department of the Treasury and the Health Special Account is administered by the Department of Health.

3. Appropriation: Public Governance, Performance and Accountability Act 2013, section 80.

Establishing instrument: Fuel Indexation (Road Funding) Special Account Act 2015, subsection 8(1).

Purpose: To ensure that amounts equal to the net revenue from indexation on customs and excise duties on fuel are transferred to the COAG Reform Fund in order to provide funding to the States and Territories for expenditure in relation to Australian road infrastructure investment.

4. Appropriation: Public Governance, Performance and Accountability Act 2013, section 80.

Establishing instrument: COAG Reform Fund Act 2008, section 5.

Purpose: For the making of grants of financial assistance to the States and Territories.

Note: The Treasury makes payments to the States and Territories from the COAG Reform Fund special account based on information provided by other Government departments that have policy and program implementation responsibility.

5. Appropriation: Public Governance, Performance and Accountability Act 2013, section 80.

Establishing instrument: Establishment of SOTEM Special Account — Treasury Determination 2012/09.

Purpose: To disburse amounts held on trust for the benefit of a person other than the Commonwealth or in connection with services performed on or behalf of other governments and bodies.

Note: Receipt relates to funding received and held on trust for the Global Infrastructure Hub.

Financial System Stability Special Account (Administered)

The Treasury’s ‘Financial System Stability’ special account established under section 70E of the Banking Act 1959 for the making of payments authorised under specified sections of the Banking Act 1959, the Insurance Act 1973 and the Life Insurance Act 1995 and to meet expenses of administering the special account. For the years ended 30 June 2017 and 30 June 2018 this special account had nil balances and no transactions were credited or debited to the account.

6.3 Net Cash Appropriation Arrangements

2018

2017

$’000

$’000

Surplus/(Deficit) less depreciation/amortisation expenses

3,163

3,304

Plus: changes in asset revaluation reserves

262

228

Total comprehensive income/(loss) less depreciation/amortisation expenses previously funded through revenue appropriations

3,425

3,532

Plus: depreciation/amortisation expenses previously funded through revenue appropriation

(8,878)

(10,360)

Total comprehensive income/(loss) - as per the Statement of Comprehensive Income

(5,453)

(6,828)

From 2010-11, the Government introduced net cash appropriation arrangements, where revenue appropriations for depreciation/amortisation expenses ceased. Entities now receive a separate capital budget provided through equity appropriations. Capital budgets are to be appropriated in the period when cash payment for capital expenditure is required.