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Note 3: Own-source revenue and gains

Note 3A: Revenue from contracts with customers

2020

$’000

2019

$’000

Own-source revenue

Rendering of Services

2,627

9,733

Total revenue from contracts with customers

2,627

9,733

Disaggregation of revenue from contracts with customers

Type of customer:

Australian Government entities (related parties)

State and Territory Governments

935

Non-government entities

1,692

2,627

Timing of transfer of goods and services:

Over time

Point in time

2,627

2,627

Accounting Policy

Revenue from contracts with customers is recognised when control has been transferred to the buyer. Tourism Australia determines a contract is in scope of AASB 15 when the performance obligations are required by an enforceable contract and the performance obligations within the enforceable contract are sufficiently specific to enable Tourism Australia to determine when they have been satisfied. Tourism Australia determines there to be an enforceable contract when the agreement creates enforceable rights and obligations. Performance obligations are sufficiently specific where the promises within the contract are specific to the nature, type, value and quantity of the services to be provided and the period over which the services must be transferred.

The following is a description of principal activities from which Tourism Australia generates its revenue: Tourism Australia generates partnership marketing revenue contributed by the tourism industry.

Revenue from partnership marketing services is recognised at the point in time when control of the asset is transferred to Tourism Australia, generally on delivery of the advertising services.

The transaction price is the total amount of consideration to which Tourism Australia expects to be entitled in exchange for transferring promised services to a customer. The consideration promised in a contract with a customer may include fixed amounts, variable amounts, or both. All consideration promised in contracts with customers is included in the transaction price.

Tourism Australia expects to recognise as income any liability for unsatisfied obligations associated with revenue from contracts with customers within the next 12 months.

Receivables for services, which have 30 day terms, are recognised at the nominal amounts due less any impairment allowance account. Collectability of debts is reviewed at end of the reporting period. Allowances are made when collectability of the debt is no longer probable.

Note 3B: Contributions

2020

$’000

2019

$’000

Industry contributions

9,168

10,864

Total contributions

9,168

10,864

Accounting Policy

Industry contributions reflect the actual value of industry support for Tourism Australia's activities from direct revenue. In addition to direct revenues from the industry, joint marketing programs were undertaken. Through these programs the industry supplements funds provided by Tourism Australia for product development, visiting journalists and tactical marketing programs. Due to the nature of the programs, these funds or indirect revenue do not form part of the reported level of industry contributions for Tourism Australia, but are in addition to it.

Industry contributions are recognised at the point in time actual industry events occur.

Note 3C: Revenue from Government

2020

$’000

2019

$’000

Corporate Commonwealth entity payments

135,618

132,488

Payments from other Government entities

62,602

22,916

Total revenue from Government

198,220

155,404

The entity has $39.7M unspent budget at the year end, of which $17.3M is its usual yearly government funding, and the balance of $22.4M is part of the total $41.5M Bushfire Recovery funding received during the year.

Accounting Policy

Amounts appropriated for the year (adjusted for any formal additions or reductions) are recognised as Revenue from Government when Tourism Australia gains control of the appropriation, except for certain amounts that relate to activities that are reciprocal in nature, in which case revenue is recognised only when it has been earned.

Funding received or receivable from non-corporate Commonwealth entities (appropriated to the non-corporate Commonwealth entity as a corporate Commonwealth entity payment item for payment to this entity) is recognised as revenue from Government by Tourism Australia unless the funding is in the nature of an equity injection or a loan.

Payments from other Government entities includes a $2.6M (2019: $3.9M) no-win / no-loss funding agreement due to the complex and variable environment the department operates in overseas.