Section 1: Agency overview and resources
1.1 Strategic direction statement
The Productivity Commission (the Commission) is the Australian Government's independent research and advisory body on a range of economic, social and environmental issues affecting the welfare of Australians. The Commission's work encompasses all sectors of the economy as well as social and environmental issues. Its activities cover all levels of government responsibility — Federal, State, Territory and Local.
As a review and advisory body, the Commission does not have responsibility for implementing government programs. It carries out inquiry, research, advising and incidental functions prescribed under the Productivity Commission Act 1998.
The Commission contributes to well‑informed policy decision‑making and public understanding on matters relating to Australia's economic performance and community wellbeing, based on independent and transparent analysis that takes a broad view encompassing the interests of the community as a whole, rather than just particular industries or groups. The Commission has four broad components of work:
- government commissioned projects;
- performance reporting and other services to government bodies;
- competitive neutrality complaints activities; and
- supporting research and activities and statutory annual reporting.
It is anticipated the Commission's work in 2013‑14 and the forward years will be integral to the national reform agenda. The Commission will continue to examine a variety of economic, social and environmental issues through its public inquiry and commissioned research program. Commissioned projects currently underway and carrying over into 2013‑14 include: inquiries into Non‑financial barriers to mineral and energy resource exploration, and the National Access Regime; and studies to benchmark Australia's Major Project Development Assessment Processes, and Regulator Engagement with Small Business.
Several of the commissioned projects have been initiated by the Council of Australian Governments (COAG). The Commission is also working with Australia's jurisdictions in respect of standing research responsibilities and specific projects. In particular, the Commission is providing cross‑jurisdictional reporting to COAG on performance of government services; indicators of Indigenous disadvantage; and expenditure on services to Indigenous Australians. The Commission prepares and reports performance information to the COAG Reform Council in respect of the Intergovernmental Agreement on Federal Financial Relations. The Commission is also undertaking data development, modelling and analysis to report on the economic impacts and benefits of COAG's agreed reform agenda.
The Australian Government Competitive Neutrality Complaints Office (AGCNCO) is an autonomous office located within the Commission. Its function is to receive and investigate complaints and provide advice to the Assistant Treasurer on the application of competitive neutrality arrangements. AGCNCO also provides informal advice on, and assists agencies in, implementing competitive neutrality requirements.
The Commission has a statutory mandate to undertake research to complement its other activities. The supporting research program includes work on productivity performance and its determinants, environmental and resources management, labour markets (including social dimensions) and development of economic models and frameworks. The Commission's most recent research publications include staff working papers on Trends in the Distribution of Income in Australia and Changes in the Prevalence of Forms of Work in Australia. A full list of the Commission's research reports and staff working papers is provided on the Commission's website.
1.2 Agency resource statement
Table 1.1 shows the total resources for the Commission.
| Estimate of prior year amounts available in 2013‑14 $'000 |
+ | Proposed at Budget 2013‑14 $'000 |
= | Total estimate 2013‑14 $'000 |
Actual available appropriation 2012‑13 $'000 |
|
|---|---|---|---|---|---|---|
| Ordinary annual services | ||||||
| Departmental | ||||||
| Prior year departmental appropriation | 19,836 | 4 | - | 19,836 | - | |
| Departmental appropriation3 | - | 38,233 | 1 | 38,233 | 37,709 | |
| Receipts from other sources (s31) | - | 10 | 2 | 10 | 10 | |
| Total net resourcing for the Productivity Commission | 19,836 | 38,243 | 58,079 | 37,719 |
1. Appropriation Bill (No. 1) 2013‑14.
2. Receipts received under section 31 (s31) of the Financial Management and Accountability Act 1997.
3. Includes $0.3 million in 2013‑14 for the departmental capital budget (also refer to Table 3.2.5).
4. Estimated adjusted balance carried from previous year for annual appropriations.
1.3 Budget measures
Budget measures relating to the Commission are summarised below.
| Program | 2012‑13 $'000 |
2013‑14 $'000 |
2014‑15 $'000 |
2015‑16 $'000 |
2016‑17 $'000 |
|
|---|---|---|---|---|---|---|
| Expense measures | ||||||
| Targeted savings — public service efficiencies1 | 1.1 | (172) | (250) | (227) | (197) | (185) |
| Total expense measures | (172) | (250) | (227) | (197) | (185) |
1 This measure was included in a cross portfolio measure in the Mid‑Year Economic and Fiscal Outlook 2012‑13.
Prepared on a Government Finance S
tatistics (fiscal) basis.
Section 2: Outcomes and planned performance
2.1 Outcomes and performance information
Government outcomes are the intended results, impacts or consequences of actions by the Government on the Australian community. Commonwealth programs are the primary vehicle by which government agencies achieve the intended results of their outcome statements. Agencies are required to identify the programs which contribute to Government outcomes over the Budget and forward years.
The Commission's outcome is described below, specifying the strategy, program objective, program deliverables and program key performance indicators used to assess and monitor the performance of the Commission.
Outcome 1: Well‑informed policy decision‑making and public understanding on matters relating to Australia's productivity and living standards, based on independent and transparent analysis from a community‑wide perspective
Outcome 1 strategy
The Commission's activities derive from its statutory functions outlined in the Productivity Commission Act 1998 and reported in detail in the Annual Report. The Commission aims to demonstrate its effectiveness by reporting annually on the relevance, quality, timeliness and cost‑effectiveness of its activities.
Outcome expense statement
Table 2.1 provides an overview of the total expenses for Outcome 1.
| Outcome 1: Well-informed policy decision-making and public understanding on matters relating to Australia's productivity and living standards, based on independent andtransparent analysis from a community-wide perspective | 2012‑13 Estimated actual expenses $'000 |
2013 ‑14 Estimated expenses $'000 |
|---|---|---|
| Program 1: Productivity Commission | ||
| Departmental expenses | ||
| Departmental appropriation | 37,439 | 37,964 |
| Expenses not requiring appropriation in the budget year | 1,013 | 1,013 |
| Total expenses for Outcome 1 | 38,452 | 38,977 |
| 2012‑13 | 2013‑14 | |
| Average staffing level (number) | 198 | 193 |
Contributions to Outcome 1
Program 1.1: Productivity Commission
Program objective
The Commission's objective is to contribute to well‑informed policy decision‑making and public understanding on matters relating to Australia's productivity and living standards, based on independent and transparent analysis from a community‑wide perspective.
Program expenses
There are no significant changes to the pre‑existing forward estimates.
| 2012‑13 Revised budget $'000 |
2013‑14 Budget $'000 |
2014‑15 Forward year 1 $'000 |
2015‑16 Forward year 2 $'000 |
2016‑17 Forward year 3 $'000 |
|
|---|---|---|---|---|---|
| Annual departmental expenses | |||||
| Departmental items | 38,452 | 38,977 | 38,942 | 34,672 | 34,903 |
| Total departmental expenses | 38,452 | 38,977 | 38,942 | 34,672 | 34,903 |
Program deliverables
The Commission will deliver:
- public inquiry reports (for example, the inquiry report on Non‑financial barriers to mineral and energy resource exploration), and reports concerning other commissioned work (such as the benchmarking of Australia's Major Project Development Assessment Processes study);
- government services performance reports including Australian Government or State or Territory service provision, key indicators of Indigenous disadvantage, and the Indigenous expenditure report;
- investigation of competitive neutrality complaints and associated activities such as research, advice and education; and
- statutory annual reporting including the Trade and Assistance Review; Commission research and staff working papers prepared in support of the Commission's inquiry program and to contribute to better understanding of public policy issues; and associated activities such as submissions, conference reports and speeches delivered by the Chairman, Commissioners and Commission staff.
Program key performance indicators
The Commission aims to complete projects, reports and associated activities that are:
- high quality;
- useful to stakeholders; and
- timely.
Indicators of performance include:
- the Commission's work being widely referenced in public policy forums;
- projects and reports are completed in accordance with commissioned timelines; and
- independent and transparent processes are followed.
Section 3: Explanatory tables and budgeted financial statements
Section 3 presents explanatory tables and budgeted financial statements which provide a comprehensive snapshot of agency finances for the budget year 2013‑14. It explains how budget plans are incorporated into the financial statements and provides further details of the reconciliation between appropriations, program expenses, movements in administered funds, special accounts and government Indigenous expenditure.
3.1 Explanatory tables
3.1.1 Movement of administered funds between years
The Commission does not have any administered funds.
3.1.2 Special accounts
The Commission does not have any special accounts.
3.1.3 Australian Government Indigenous Expenditure
| Appropriations | Other | Total | Program | ||||
|---|---|---|---|---|---|---|---|
| Bill No. 1 $'000 |
Bill No. 2 $'000 |
Special approp $'000 |
Total approp $'000 |
$'000 | $'000 | ||
| Productivity Commission | |||||||
| Outcome 1 | & nbsp; |
||||||
| Departmental 2013‑14 | 1,170 | - | - | 1,170 | - | 1,170 | 1.1 |
| Departmental 2012‑13 | 731 | - | - | 731 | - | 731 | 1.1 |
3.2 Budgeted financial statements
3.2.1 Differences in agency resourcing and financial statements
There are no material differences between agency resourcing and financial statements.
3.2.2 Analysis of budgeted financial statements
The budgeted financial statements have been prepared on an Australian Accounting Standards basis.
The Commission is budgeting for a break‑even result in 2013‑14 and the forward years.
3.2.3 Budgeted financial statements tables
| Estimated actual 2012‑13 $'000 |
Budget estimate 2013‑14 $'000 |
Forward estimate 2014‑15 $'000 |
Forward estimate 2015‑16 $'000 |
Forward estimate 2016‑17 $'000 |
|
|---|---|---|---|---|---|
| EXPENSES | |||||
| Employee benefits | 28,774 | 29,224 | 29,275 | 25,915 | 26,129 |
| Supplier | 8,676 | 8,750 | 8,763 | 7,757 | 7,818 |
| Depreciation and amortisation | 980 | 980 | 880 | 975 | 930 |
| Finance costs | 22 | 23 | 24 | 25 | 26 |
| Total expenses | 38,452 | 38,977 | 38,942 | 34,672 | 34,903 |
| LESS: | |||||
| OWN-SOURCE INCOME | |||||
| Revenue | |||||
| Sale of goods and rendering of services | 10 | 10 | 10 | 10 | 10 |
| Total revenue | 10 | 10 | 10 | 10 | 10 |
| Gains | |||||
| Other | 33 | 33 | 33 | 33 | 33 |
| Total gains | 33 | 33 | 33 | 33 | 33 |
| Total own-source income | 43 | 43 | 43 | 43 | 43 |
| Net cost of (contribution by) services | 38,409 | 38,934 | 38,899 | 34,629 | 34,860 |
| Appropriation revenue | 37,429 | 37,954 | 38,019 | 33,654 | 33,930 |
| Surplus (deficit) attributable to the Australian Government | (980) | (980) | (880) | (975) | (930) |
| Note: Impact of Net Cash Appropriation Arrangements | |||||
| 2012-13 $'000 |
2013-14 $'000 |
2014-15 $'000 |
2015-16 $'000 |
2016-17 $'000 |
|
| Total Comprehensive Income (loss) less depreciation/amortisation expenses previously funded through revenue appropriations | - | - | - | - | - |
| plus depreciation/amortisation expenses previously funded through revenue appropriations | (980) | (980) | (880) | (975) | (930) |
| Total Comprehensive Income (loss) - as per the Statement of Comprehensive Income | (980) | (980) | (880) | (975) | (930) |
Prepared on Australian Accounting Standards basis.
| Estimated actual 2012‑13 $'000 |
Budget estimate 2013‑14 $'000 |
Forward estimate 2014‑15 $'000 |
Forward estimate 2015‑16 $'000 |
Forward estimate 2016‑17 $'000 |
|
|---|---|---|---|---|---|
| ASSETS | |||||
| Financial assets | |||||
| Cash and equivalents | 357 | 357 | 357 | 357 | 357 |
| Trade and other receivables | 20,022 | 20,009 | 20,331 | 20,437 | 18,412 |
| Total financial assets | 20,379 | 20,366 | 20,688 | 20,794 | 18,769 |
| Non-financial assets | |||||
| Land and buildings | 4,321 | 3,654 | 2,989 | 2,259 | 4,407 |
| Infrastructure, plant and equipment | 849 | 683 | 753 | 913 | 776 |
| Intangibles | 160 | 139 | 134 | 129 | 124 |
| Other | 628 | 628 | 628 | 628 | 628 |
| Total non-financial assets | 5,958 | 5,104 | 4,504 | 3,929 | 5,935 |
| Total assets | 26,337 | 25,470 | 25,192 | 24,723 | 24,704 |
| LIABILITIES | |||||
| Provisions | |||||
| Employees | 12,582 | 12,582 | 12,582 | 12,582 | 12,582 |
| Other | 428 | 451 | 475 | 500 | 526 |
| Total provisions | 13,010 | 13,033 | 13,057 | 13,082 | 13,108 |
| Payables | |||||
| Suppliers | 295 | 295 | 295 | 295 | 295 |
| Other | 2,830 | 2,641 | 2,352 | 1,958 | 1,958 |
| Total payables | 3,125 | 2,936 | 2,647 | 2,253 | 2,253 |
| Total liabilities | 16,135 | 15,969 | 15,704 | 15,335 | 15,361 |
| Net assets | 10,202 | 9,501 | 9,488 | 9,388 | 9,343 |
| EQUITY | |||||
| Contributed equity | 2,435 | 2,714 | 3,581 | 4,456 | 5,341 |
| Reserves | 2,154 | 2,154 | 2,154 | 2,154 | 2,154 |
| Retained surpluses or accumulated deficits | 5,613 | 4,633 | 3,753 | 2,778 | 1,848 |
| Total equity | 10,202 | 9,501 | 9,488 | 9,388 | 9,343 |
| Current assets | 21,007 | 20,994 | 21,316 | 21,422 | 19,397 |
| Non-current assets | 5,330 | 4,476 | 3,876 | 3,301 | 5,307 |
| Current liabilities | 11,929 | 12,029 | 12,134 | 12,199 | 12,033 |
| Non-current liabilities | 4,206 | 3,940 | 3,570 | 3,136 | 3,328 |
Prepared on Australian Accounting Standards basis.
| Estimated actual 2012‑13 $'000 |
Budget estimate 2013‑14 $'000 |
Forward estimate 2014‑15 $'000 |
Forward estimate 2015‑16 $'000 |
Forward estimate 2016‑17 $'000 |
|
|---|---|---|---|---|---|
| OPERATING ACTIVITIES | |||||
| Cash received | |||||
| Goods and services | 10 | 10 | 10 | 10 | 10 |
| Appropriations | 37,546 | 37,967 | 37,697 | 33,548 | 35,955 |
| Total cash received | 37,556 | 37,977 | 37,707 | 33,558 | 35,965 |
| Cash used | |||||
| Employees | 28,624 | 29,224 | 29,275 | 25,915 | 26,129 |
| Suppliers | 8,735 | 8,906 | 9,019 | 8,118 | 7,785 |
| Total cash used | 37,359 | 38,130 | 38,294 | 34,033 | 33,914 |
| Net cash from or (used by) operating activities | 197 | (153) | (587) | (475) | 2,051 |
| INVESTING ACTIVITIES | |||||
| Cash used | |||||
| Purchase of property, plant and equipment | 477 | 126 | 280 | 400 | 2,936 |
| Total cash used | 477 | 126 | 280 | 400 | 2,936 |
| Net cash from or (used by) investing activities | (477) | (126) | (280) | (400) | (2,936) |
| FINANCING ACTIVITIES | |||||
| Cash received | |||||
| Contributed equity | 280 | 279 | 867 | 875 | 885 |
| Total cash received | 280 | 279 | 867 | 875 | 885 |
| Net cash from (used by) financing activities | 280 | 279 | 867 | 875 | 885 |
| Net increase or (decrease) in cash held | - | - | - | - | - |
| Cash at the beginning of the reporting period | 357 | 357 | 357 | 357 | 357 |
| Cash at the end of the reporting period | 357 | 357 | 357 | 357 | 357 |
Prepared on Australian Accounting Standards basis.
| Retained surpluses $'000 |
Asset revaluation reserve $'000 |
Other reserves $'000 |
Contributed equity/ capital $'000 |
Total equity $'000 |
|
|---|---|---|---|---|---|
| Opening balance as at 1 July 2013 | |||||
| Balance carried forward from previous period | 5,613 | 2,154 | - | 2,435 | 10,202 |
| Adjusted opening balance | 5,613 | 2,154 | - | 2,435 | 10,202 |
| Comprehensive income | |||||
| Surplus (deficit) for the period | (980) | - | - | - | (980) |
| Total comprehensive income recognised directly in equity | (980) | - | - | - | (980) |
| Transactions with owners | |||||
| Contributions by owners | |||||
| Appropriation - DCB | - | - | - | 279 | 279 |
| Total transactions with owners | - | - | - | 279 | 279 |
| Estimated closing balance as at 30 June 2014 | 4,633 | 2,154 | - | 2,714 | 9,501 |
Prepared on Australian Accounting Standards basis.
| Estimated actual 2012‑13 $'000 |
Budget estimate 2013‑14 $'000 |
Forward estimate 2014‑15 $'000 |
Forward estimate 2015‑16 $'000 |
Forward estimate 2016‑17 $'000 |
|
|---|---|---|---|---|---|
| NEW CAPITAL APPROPRIATIONS | |||||
| Capital budget - Bill 1 - DCB | 280 | 279 | 867 | 875 | 885 |
| Total new capital appropriations | 280 | 279 | 867 | 875 | 885 |
| Provided for: | |||||
| Purchase of non-financial assets | 280 | 126 | 280 | 400 | 885 |
| Other | - | 153 | 587 | 475 | - |
| Total Items | 280 | 279 | 867 | 875 | 885 |
| PURCHASE OF NON-FINANCIAL ASSETS | |||||
| Funded by capital appropriation - DCB | 477 | 126 | 280 | 400 | 2,734 |
| Funded internally from departmental resources | - | - | - | - | 202 |
| TOTAL | 477 | 126 | 280 | 400 | 2,936 |
| RECONCILIATION OF CASH USED TO ACQUIRE ASSETS TO ASSET MOVEMENT TABLE | |||||
| Total purchases | 477 | 126 | 280 | 400 | 2,936 |
| Total cash used to acquire assets | 477 | 126 | 280 | 400 | 2,936 |
Prepared on Australian Accounting Standards basis.
| Buildings $'000 |
Other infrastructure, plant and equipment $'000 |
Intangibles $'000 |
Total $'000 |
|
|---|---|---|---|---|
| As at 1 July 2013 | ||||
| Gross book value | 6,077 | 1,485 | 690 | 8,252 |
| Accumulated depreciation/amortisation and impairment | 1,756 | 636 | 530 | 2,922 |
| Opening net book balance | 4,321 | 849 | 160 | 5,330 |
| Capital asset additions | ||||
| By purchase - appropriation ordinary annual services | - | 121 | 5 | 126 |
| Total asset additions | - | 121 | 5 | 126 |
| Other movements | ||||
| Depreciation/amortisation expense | 667 | 287 | 26 | 980 |
| Total other movements | 667 | 287 | 26 | 980 |
| As at 30 June 2014 | ||||
| Gross book value | 6,077 | 1,606 | 695 | 8,378 |
| Accumulated depreciation/amortisation and impairment | 2,423 | 923 | 556 | 3,902 |
| Closing net book balance | 3,654 | 683 | 139 | 4,476 |
Prepared on Australian Accounting Standards basis.