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Office of the Australian Information Commissioner Annual Report 2018–19

Overview

Objectives of the OAIC

The Office of the Australian Information Commissioner (OAIC) is an Australian Government controlled entity established under the Australian Information Commissioner Act 2010.

The OAIC budgeted for a breakeven result, adjusted for depreciation and amortisation of $464,000. During the reporting period there were a number of factors which were not anticipated that resulted in an operating deficit. A significant factor included an additional and unforeseeable lump sum superannuation contribution of $531,000 that the OAIC became aware of in May 2019.

The OAIC is structured to meet the following outcome:

Provision of public access to Commonwealth Government information, protection of individuals’ personal information, and performance of Information Commissioner, freedom of information and privacy functions.
The OAIC activities contributing toward this outcome are classified as departmental. Departmental activities involve the use of assets, liabilities, income and expenses controlled or incurred by the OAIC in its own right.

The basis of preparation

The financial statements are general purpose financial statements and are required by section 42 of the Public Governance, Performance and Accountability Act 2013.

The financial statements have been prepared in accordance with:

a) Public Governance, Performance and Accountability (Financial Reporting) Rule 2015 (FRR) for reporting periods ending on or after 1 July 2015; and

b) Australian Accounting Standards and Interpretations – Reduced Disclosure Requirements issued by the Australian Accounting Standards Board (AASB) that apply for the reporting period.

The financial statements have been prepared on an accrual basis and in accordance with the historical cost convention, except for certain assets and liabilities at fair value. Except where stated, no allowance is made for the effect of changing prices on the results or the financial position. The financial statements are presented in Australian dollars.

New accounting standards

Adoption of new accounting standard requirements

No accounting standard has been adopted earlier than the application date as stated in the standard. No new, revised, amending standards and interpretations that were issued prior to the sign-off date and are applicable to the current reporting period have a material effect, or expected to have a future material effect, on the OAIC’s financial statements.

Future Australian accounting standard requirements

The following new standards and interpretations were issued by the Australian Accounting Standards Board prior to the signing of the statement by the accountable authority and chief financial officer, which are expected to have a material impact on the OAIC’s financial statements for future reporting period(s):

Standard/interpretation	Application date for the OAIC ¹	Nature of impending change/s in accounting policy and likely impact on initial application
AASB 15 Revenue from Contracts with Customers AASB 2014-5 Amendments to Australian Accounting Standards arising from AASB 15 AASB 2015-8 Amendments to Australian Accounting Standards – Effective Date of AASB 15	1 July 2019	AASB 15 contains a single model that applies to contracts with customers and two approaches to recognising revenue: at a point in time or over time. The model features a contract-based five-step analysis of transactions to determine whether, how much and when revenue is recognised. Depending on the nature of the transaction and the OAIC's current policy, the new Standard may have a minimal impact on the timing of the recognition of revenue. Final outcome will need to be considered once the related Income for NFP project is completed.
AASB 16 Leases	1 July 2019	AASB 16 removes the classification of leases as either operating leases or finance leases – for the lessee – effectively treating all leases as finance leases. AASB 16 requires a lessee to recognise assets and liabilities for all leases with a term of more than 12 months, unless the underlying asset is of low value. A lessee is required to recognise a right-of-use asset representing its right to use the underlying leased asset and a lease liability representing its obligations to make lease payments. AASB 16 requires enhanced disclosures for both lessees and lessors to improve information disclosed about an entity’s exposure to leases. The property lease will create a right of use asset and lease liability for the OAIC. This will impact the value of assets and liabilities, and potentially increase expenses and the value of depreciation.

Standard/interpretation

Application date for the OAIC ¹

Nature of impending change/s in accounting policy and likely impact on initial application

AASB 15 Revenue from Contracts with Customers

AASB 2014-5 Amendments to Australian Accounting Standards arising from AASB 15

AASB 2015-8 Amendments to Australian Accounting Standards – Effective Date of AASB 15

1 July 2019

AASB 15 contains a single model that applies to contracts with customers and two approaches to recognising revenue: at a point in time or over time.

The model features a contract-based five-step analysis of transactions to determine whether, how much and when revenue is recognised.

Depending on the nature of the transaction and the OAIC's current policy, the new Standard may have a minimal impact on the timing of the recognition of revenue. Final outcome will need to be considered once the related Income for NFP project is completed.

AASB 16 Leases

1 July 2019

AASB 16 removes the classification of leases as either operating leases or finance leases – for the lessee – effectively treating all leases as finance leases. AASB 16 requires a lessee to recognise assets and liabilities for all leases with a term of more than 12 months, unless the underlying asset is of low value. A lessee is required to recognise a right-of-use asset representing its right to use the underlying leased asset and a lease liability representing its obligations to make lease payments.

AASB 16 requires enhanced disclosures for both lessees and lessors to improve information disclosed about an entity’s exposure to leases. The property lease will create a right of use asset and lease liability for the OAIC. This will impact the value of assets and liabilities, and potentially increase expenses and the value of depreciation.

¹ All other new, revised, amending standards and interpretations that were issued prior to the sign-off date and are applicable to future reporting period(s) are not expected to have a future material impact on the OAIC’s financial statements.

Taxation

The OAIC is exempt from all forms of taxation except Fringe Benefits Tax (FBT) and the Goods and Services Tax (GST).

Events after the reporting period

There are no known events after the reporting period that could have a material impact on the financial statements.

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