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Part 3: Expenses and Net Capital Investment

This Part reports on departmental expenses and net capital investment, by agency. The data are presented on the same basis as data in Statement 5 of Budget Paper No. 1. Both sets of data are presented on the basis of external accounting and financial reporting standards. These standards present information in terms of accrued expenses and accrued revenue.

The main external standards used are:

  • the Australian Bureau of Statistics' (ABS) accrual Government Finance Statistics (GFS) publication, Australian System of Government Finance Statistics: Concepts, Sources and Methods, (cat no. 5514.0), which in turn is based on the International Monetary Fund (IMF) accrual GFS framework; and
  • Australian Accounting Standards (AAS), being AASB 1049 Whole of Government and General Government Sector Financial Reporting (AASB 1049) and other applicable Australian Equivalents to International Financial Reporting Standards (AEIFRS).

Machinery of government changes have implications for how information is presented in the tables in Part 3. For example, if an agency was abolished in 2015‑16 it will have estimated expenses for 2015‑16 reflecting expenditure in part of that year. If an agency was created in 2015‑16, it will have estimated expenses for both 2015‑16 and 2016‑17, and for projected out years.

Departmental Expenses Table

Table 3.1 presents departmental expenses by agency. Departmental expenses reduce the net worth of agencies. It includes expenses controlled by agencies such as payment of wages and purchases of goods and services. It excludes administered expenses — not controlled by agencies - paid on behalf of government such as social benefits and grants to the States. It also excludes capital expenditure which does not reduce net worth.

Table 3.1: Departmental expenses table
  Estimates   Projections
  2015‑16 2016‑17 2017‑18   2018‑19 2019‑20
  $m $m $m   $m $m
Agriculture and Water Resources            
Department of Agriculture and Water Resources 756 801 795   780 740
Grains Research and Development Corporation 220 221 213   212 212
Total 976 1,021 1,009   992 952
Attorney-General's            
Attorney-General's Department 411 373 374   373 379
Australian Federal Police 1,403 1,362 1,246   1,242 1,231
Australian Security Intelligence Organisation 478 502 516   521 519
Family Court and Federal Circuit Court 207 0 0   0 0
High Court of Australia 23 22 23   23 23
National Archives of Australia 73 86 80   79 84
Total 2,594 2,345 2,239   2,238 2,236
Communications and the Arts            
Australian Broadcasting Corporation 1,164 1,103 1,111   1,119 1,138
Australian Communications and Media Authority 94 93 92   93 94
Department of Communications and the Arts 108 115 114   115 116
National Gallery of Australia 44 43 43   44 44
National Library of Australia 76 73 72   73 71
National Museum of Australia 48 46 46   47 47
Special Broadcasting Service Corporation 383 379 376   368 366
Total 1,918 1,852 1,854   1,857 1,875
Defence            
Australian War Memorial 68 74 69   68 69
Defence Housing Australia 1,220 1,373 1,484   1,400 1,352
Department of Defence 29,878 30,829 31,527   32,963 35,034
Department of Veterans' Affairs 360 378 355   345 342
Total 31,526 32,654 33,435   34,776 36,797
Education and Training            
Australian Research Council 25 26 26   27 27
Department of Education and Training 365 381 380   377 378
Total 390 408 406   404 405
Employment            
Comcare 476 470 482   497 514
Department of Employment 325 325 329   328 327
Total 801 795 812   826 841
Environment            
Australian Renewable Energy Agency 150 192 111   70 22
Bureau of Meteorology 367 368 319   320 319
Clean Energy Finance Corporation 34 57 69   80 93
Clean Energy Regulator 89 84 77   77 76
Department of the Environment 521 486 470   467 481
Total 1,161 1,187 1,046   1,014 992
Finance            
Australian Electoral Commission 297 318 133   146 291
Department of Finance 633 599 556   558 564
Future Fund Management Agency 50 63 68   70 72
Total 980 980 756   774 926
Foreign Affairs and Trade            
Australian Trade and Investment Commission 258 241 243   245 244
Department of Foreign Affairs and Trade 1,575 1,609 1,404   1,514 1,525
Total 1,833 1,850 1,647   1,758 1,769
Health            
Australian Sports Commission 293 280 242   238 239
Department of Health 785 829 820   824 817
National Blood Authority 10 10 10   10 10
National Health and Medical Research Council 44 41 41   42 42
Total 1,131 1,160 1,113   1,113 1,108
Immigration and Border Protection            
Department of Immigration and Border Protection 2,857 2,744 2,661   2,559 2,532
Total 2,857 2,744 2,661   2,559 2,532
Industry, Innovation and Science            
Australian Nuclear Science and Technology Organisation 328 336 338   349 356
Commonwealth Scientific and Industrial Research Organisation 1,382 1,352 1,380   1,446 1,465
Department of Industry, Innovation and Science 517 508 501   512 503
Total 2,226 2,196 2,219   2,307 2,324
Infrastructure and Regional Development            
Department of Infrastructure and Regional Development 280 284 255   205 209
National Capital Authority 21 21 21   21 21
Total 301 304 276   226 230
Parliament            
Department of Parliamentary Services 150 149 150   151 152
Total 150 149 150   151 152
Prime Minister and Cabinet            
Department of the Prime Minister and Cabinet 413 404 396   400 398
Indigenous Business Australia 204 168 173   173 177
Total 617 572 569   572 574
Social Services            
Department of Human Services 4,602 4,506 4,249   4,185 4,196
Department of Social Services 574 491 441   424 427
National Disability Insurance Agency (NDIA)(c) 1,172 4,212 10,048   17,611 21,516
NDIA administered in nature 871 3,520 8,887   16,019 20,208
NDIA departmental in nature 301 692 1,161   1,592 1,309
Total 6,348 9,209 14,737   22,220 26,140
Treasury            
Australian Bureau of Statistics 484 597 414   398 412
Australian Office of Financial Management 12 13 13   13 13
Australian Securities and Investments Commission 364 380 368   362 359
Australian Taxation Office 3,482 3,539 3,472   3,397 3,303
Department of the Treasury 182 183 181   182 179
Total 4,524 4,711 4,448   4,353 4,267
Small agencies 5,063 5,306 5,255   5,116 5,064
Whole of government and inter-agency amounts(a) -1,630 -1,182 -1,650   -1,813 -1,904
AEIFRS expenses considered other economic flows(b) -1,153 -1,140 -1,093   -1,245 -1,263
Total departmental expenses 62,613 67,120 71,890   80,198 86,015
less: NDIA administered in nature(c) 871 3,520 8,887   16,019 20,208
Total excluding NDIA administered in nature 61,742 63,600 63,003   64,179 65,807

(a) Estimates of inter-agency transactions are included in the whole of government and inter-agency amounts. The entry for each portfolio does not include eliminations for inter-agency transactions within that portfolio.

(b) Agency estimates are reported on an AEIFRS basis. AEIFRS expenses considered other economic flows include net write-down and impairment of assets and fair value losses.

(c) The NDIA is a Commonwealth corporate entity and as such is not required to report expenses separately as administered or departmental. However, the NDIA's expenses incurred in the provision of reasonable and necessary care and support to clients (administered in nature) will be significant over the forward estimates compared to other Commonwealth corporate entities. Additionally, these expenses are jointly funded by the Commonwealth and participating states and territories. To provide a better view of these NDIA expenses, Table 3.1 shows the split between expenses that are departmental or administered in nature and provides a total excluding NDIA administered in nature.

Net Capital Investment Table

Table 3.2 presents net capital investment by agency. Net capital investment represents expenditure by agencies on non-financial assets. It includes expenditure on assets such as defence equipment. It excludes any investment in financial assets such as loans.

Table 3.2: Net capital investment table
  Estimates   Projections
  2015‑16 2016‑17 2017‑18   2018‑19 2019‑20
  $m $m $m   $m $m
Agriculture and Water Resources            
Department of Agriculture and Water Resources 648 6 -13   -23 -16
Grains Research and Development Corporation 2 -1 -1   -1 -1
Total 650 6 -14   -23 -17
Attorney-General's            
Attorney-General's Department -93 -6 -5   -2 -1
Australian Federal Police 20 33 20   12 -1
Australian Security Intelligence Organisation -22 -22 3   0 -35
Family Court and Federal Circuit Court -1 -43 0   0 0
High Court of Australia -2 2 0   -3 -2
National Archives of Australia 2 2 2   3 3
Total -96 -35 19   11 -36
Communications and the Arts            
Australian Broadcasting Corporation 66 -15 14   -37 -37
Australian Communications and Media Authority 7 0 -3   -1 -1
Department of Communications and the Arts 81 -10 -8   -7 -9
National Gallery of Australia 17 17 17   17 17
National Library of Australia 7 2 3   -3 -1
National Museum of Australia 3 2 2   2 2
Special Broadcasting Service Corporation 0 11 6   -6 6
Total 182 8 31   -35 -21
Defence            
Australian War Memorial 392 -10 -12   -6 -15
Defence Housing Australia 80 88 -35   -37 70
Defence Materiel Organisation -2,915 0 0   0 0
Department of Defence 5,222 2,571 4,103   4,851 5,188
Department of Veterans' Affairs -12 6 -9   -8 -6
Total 2,767 2,655 4,048   4,799 5,237
Education and Training            
Australian Research Council 0 0 -3   -3 -3
Department of Education and Training 21 -8 -14   -19 -23
Total 21 -7 -17   -22 -26
Employment            
Comcare -3 7 4   -7 -7
Department of Employment 23 7 -1   -1 0
Total 20 13 3   -8 -8
Environment            
Australian Renewable Energy Agency -21 0 0   0 0
Bureau of Meteorology 39 -1 -14   0 1
Clean Energy Regulator -10 -10 -5   -3 -1
Department of the Environment -427 540 666   373 322
Total -419 529 648   371 322
Finance            
Australian Electoral Commission 3 -3 0   2 1
Department of Finance -138 70 -5   -39 -28
Future Fund Management Agency 1 1 -2   -2 -1
Total -133 69 -7   -39 -28
Foreign Affairs and Trade            
Australian Trade and Investment Commission 0 1 -1   -4 -5
Department of Foreign Affairs and Trade 274 54 -70   2 80
Total 274 54 -71   -2 75
Health            
Australian Sports Commission -10 0 -7   13 19
Department of Health -67 -8 -33   -38 -30
National Blood Authority 0 1 0   0 0
National Health and Medical Research Council 2 -2 -2   -2 -1
Total -75 -9 -42   -28 -11
Immigration and Border Protection            
Australian Customs and Border Protection Service -841 0 0   0 0
Department of Immigration and Border Protection 1,189 159 -25   -89 -110
Total 348 159 -25   -89 -110
Industry, Innovation and Science            
Australian Nuclear Science and Technology Organisation -1 -1 15   -1 -8
Commonwealth Scientific and Industrial Research Organisation -49 -99 -43   -48 -10
Department of Industry, Innovation and Science 7 -11 -13   -17 -16
Total -43 -111 -41   -66 -34
Infrastructure and Regional Development            
Department of Infrastructure and Regional Development -30 5 -5   -15 -19
National Capital Authority -8 -8 -8   -8 -8
Total -38 -4 -13   -24 -27
Parliament            
Department of Parliamentary Services 23 79 26   1 2
Total 23 79 26   1 2
Prime Minister and Cabinet            
Department of the Prime Minister and Cabinet -4 -4 0   -1 -2
Indigenous Business Australia 16 -5 -1   -2 -1
Total 12 -9 -1   -3 -3
Social Services            
Department of Human Services -23 -14 -28   -48 -67
Department of Social Services 27 8 -7   -8 -11
National Disability Insurance Agency 42 95 71   -25 -25
Total 45 89 35   -81 -104
Treasury            
Australian Bureau of Statistics 20 31 -1   -14 -15
Australian Office of Financial Management 1 0 0   0 0
Australian Securities and Investments Commission -18 17 12   -1 -6
Australian Taxation Office 48 -22 -60   -87 -90
Department of the Treasury -1 0 0   0 0
Total 50 27 -48   -102 -111
Small agencies 0 210 45   -17 -35
Whole of government and inter-agency amounts(a) 542 -517 -444   -577 -639
Adjustments to AEIFRS movements in non-financial assets(b) 224 233 -744   816 1,091
Total net capital investment 4,355 3,437 3,388   4,885 5,517

(a) Estimates of inter-agency transactions are included in the whole of government and inter-agency amounts. The entry for each portfolio does not include eliminations for inter-agency transactions within that portfolio.

(b) Agency estimates are reported on an AEIFRS basis. AEIFRS movements in non-financial assets considered other economic flows include net write-down and impairment of non-financial assets and assets recognised for the first time. They also include Contingency Reserve movements in non-financial assets.