Section 1: Agency overview and resources
1.1 Strategic direction statement
The Australian Competition and Consumer Commission (ACCC) is an independent Commonwealth statutory authority whose role is to enforce the Competition and Consumer Act 2010 (CCA) and a range of additional legislation, promoting competition, fair trading and regulating national infrastructure for the benefit of all Australians.
The Australian Energy Regulator (AER) is Australia's national energy market regulator. The AER has an independent Board.
The ACCC and AER share staffing, resources and facilities.
The roles of the ACCC and AER should be seen in the context of the thinking that underpins National Competition Policy — that competition provides the best incentive for businesses to become more efficient, innovative and flexible and to operate in the long term interests of end users. Together the ACCC and AER champion strong, efficient and effective markets.
As Australia's peak consumer protection and competition agency, the ACCC has a number of enduring compliance and enforcement priorities: cartel conduct; agreements that substantially lessen competition, including secondary boycotts; the misuse of market power; and product safety issues which have the potential to cause serious harm to consumers.
During 2014‑15, the ACCC is prioritising work in the following areas:
- consumer protection in the telecommunications sector, and in the energy sectors with a particular focus on saving representations, also referred to as 'discounts off what?';
- emerging consumer issues in the online marketplace, particularly those associated with the incremental disclosure of additional fees and charges (including credit card surcharges) by traders (often referred to as 'drip pricing'), and comparator websites;
- competition and consumer issues in highly concentrated sectors, in particular in the supermarket and fuel sectors;
- in conjunction with other agencies, disruption of scams that rely on building deceptive relationships and which cause severe and widespread consumer and small business detriment;
- complexity and unfairness in consumer or small business contracts;
- credence claims, particularly those with the potential to adversely impact the competitive process and small businesses;
- misleading carbon pricing representations;
- the Australian Consumer Law consumer guarantees regime, and particularly representations made about a consumer's rights when buying products, including representations made in the context of the sale of extended warranties; and
- consumer protection issues impacting on Indigenous consumers.
The ACCC uses priority factors to direct resources to the investigation and resolution of matters that provide the greatest overall benefit for competition and consumers.
The ACCC is the national regulator of natural monopoly infrastructure facilities in communication, bulk water, post and transport industries (energy sector regulation is undertaken by the AER). Fostering efficient infrastructure provision through industry‑specific regulation and access conditions — under the umbrella of the long-term interest of end users — is the major focus of the economic regulatory role. Access conditions that promote competition in upstream and downstream markets can increase the efficiency and productivity of the overall economy.
The ACCC economic regulation priorities for 2014‑15 are:
- consideration and giving effect to the reviews into the National Broadband Network (NBN), including:
- any consequential variations to the regulatory arrangements relating to the NBN; and
- regulation of fixed line access and domestic network transmission facilities.
- responding to expected Part IIIA Access Undertakings:
- finalisation of competitive access arrangements for export wheat ports.
- increasing confidence in emerging water markets in the Murray-Darling Basin — enforcing and monitoring water market and charge; and
- developing a body evidence to support the need for micro economic reform agenda being considered by the Harper Review.
The AER has a diverse work programme that is informed by the requirements of the energy market laws and rules. The energy laws' objective of promoting efficient investment in, and operation and use of, energy services for the long-term interests of energy consumers guides the AER's priorities and work programme. For 2014‑15, the AER will be focussing on the following priorities when considering its work:
- delivering better network regulation;
- building consumer confidence in retail energy markets; and
- Supporting the efficient operation of energy markets.
The ACCC and AER work directly and indirectly to achieve its outcome. It will use strategic communication and undertake an active programme of stronger and managed partnerships with other organisations to deliver outcomes that impact favourably on consumer welfare.
In the 2014‑15 Budget, the Government announced the cessation of the Private Health Insurance Administration Council (PHIAC) as part of its measures to reduce duplication and increase efficiency in how public funds are used to deliver services to the community. The price monitoring functions of PHIAC will be merged into the ACCC. The winding up of the Council will be implemented through 2014‑15. Further information can be found in the Budget measure Smaller Government — additional reductions in the number of Australian Government bodies in Budget Paper No. 2, Budget Measures 2014‑15 and the press release of 13 May 2014 issued by the Minister for Finance.
1.2 Agency resource statement
Table 1.1 shows the total resources for the ACCC.
Estimate of prior year amounts available in 2014‑15 $'000 |
+ | Proposed at Budget 2014‑15 $'000 |
= | Total estimated 2014‑15 $'000 |
Actual available appropriation 2013‑14 $'000 |
||
---|---|---|---|---|---|---|---|
Ordinary annual services | |||||||
Departmental | |||||||
Prior year departmental appropriation | 6,715 | 4 | - | 6,715 | - | ||
Departmental appropriation6 | - | 169,483 | 1 | 169,483 | 181,542 | ||
Receipts from other sources (s31) | - | 1,250 | 3 | 1,250 | 870 | ||
Total ordinary annual services | A | 6,715 | 170,733 | 177,448 | 182,412 | ||
Other services | |||||||
Departmental non-operating | |||||||
Equity injections | 8,800 | 4 | 2,700 | 2 | 11,500 | 14,310 | |
Total other services | B | 8,800 | 2,700 | 11,500 | 14,310 | ||
Total available annual appropriations (A+B) | 15,515 | 173,433 | 188,948 | 196,722 | |||
Special accounts | |||||||
Opening balance5 | 54 | - | 54 | - | |||
Non-appropriation receipts to special accounts | - | - | - | - | |||
Total special accounts | C | 54 | - | 54 | - | ||
Total net resourcing for ACCC (A+B+C) | 15,569 | 173,433 | 189,002 | 196,722 |
1. Appropriation Bill (No. 1) 2014‑15.
2. Appropriation Bill (No. 2) 2014‑15.
3. Receipts received under section 31 (s31) of the Financial Management and Accountability Act 1997.
4. Estimated adjusted balance carried forward from previous year.
5. Estimated opening balance for special accounts. For further detail on special accounts see Table 3.1.2.
6. Includes $2.0 million in 2014‑15 for the departmental capital budget (also refer to Table 3.2.5).
2013‑14 $'000 |
2014‑15 $'000 |
|
---|---|---|
Payments made on behalf of the National Competition Council (NCC) | 2,775 | 1,945 |
Note: The ACCC provides financial services to the NCC and has drawdown access to manage the NCC's finances.
1.3 Budget measures
Budget measures relating to ACCC are summarised below.
Programme | 2013‑14 $'000 |
2014‑15 $'000 |
2015‑16 $'000 |
2016‑17 $'000 |
2017‑18 $'000 |
|
---|---|---|---|---|---|---|
Expense measures | ||||||
Efficiency Dividend - temporary increase in the rate1 | ||||||
Departmental expenses | 1.1 | - | (1,201) | (2,637) | (4,114) | (4,114) |
Departmental expenses | 1.2 | - | (351) | (784) | (1,211) | (1,211) |
Australian Competition and Consumer Commission - additional funding2 | 1.1 | - | - | - | - | 17,705 |
Extension of Unfair Contract Provisions to Small Businesses | 1.1 | - | 165 | 418 | 417 | 417 |
Efficiency Dividend - a further temporary increase of 0.25 per cent | ||||||
Departmental expenses | 1.1 | (342) | (666) | (1,003) | (1,001) | |
Departmental expenses | 1.2 | (88) | (173) | (256) | (258) | |
Total expense measures | - | (1,817) | (3,842) | (6,167) | 11,538 | |
Related Capital | ||||||
Australian Competition and Consumer Commission - additional funding2 | 1.1 | - | - | - | - | 600 |
Efficiency Dividend - a further temporary increase of 0.25 per cent | 1.1 | (5) | (10) | (15) | (16) | |
Total capital measures | - | (5) | (10) | (15) | 584 |
1. This measure was included in the Economic Statement 2013 and has not previously appeared in a portfolio statement.
2. Funding for this measure was included as a decision taken but not yet announced in the Mid-Year Economic and Fiscal Outlook 2013‑14.
Prepared on a Government Finance Statistics (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 programmes are the primary vehicle by which government agencies achieve the intended results of their outcome statements. Agencies are required to identify the programmes which contribute to Government outcomes over the budget and forward years.
The ACCC's outcome is described below together with its strategies, programme objectives, deliverables and programme performance indicators used to assess and monitor the performance of the ACCC.
The outcome is also applicable to the AER and informs the strategies, programme objectives, deliverables and programme performance indicators used to assess and monitor the performance of the AER.
Outcome 1: Lawful competition, consumer protection, and regulated national infrastructure markets and services through regulation, including enforcement, education, price monitoring and determining the terms of access to infrastructure services
Outcome 1 strategy
To achieve this outcome, the strategies the ACCC and AER will pursue are:
- maintain and promote competition and remedy market failure;
- protect the interests and safety of consumers and support fair trading in markets affecting consumers and small business; and
- promote the economically efficient operation of, use of, and investment in monopoly infrastructure in the long term interest of end users.
Each of these strategies is underpinned by our engagement with a broad range of groups affected by the ACCC's activities.
Outcome expense statement
Table 2.1 provides an overview of the total expenses for Outcome 1.
Table 2.1: Budgeted expenses for Outcome 1
Outcome 1: Lawful competition, consumer protection, and regulated national infrastructure markets and services through regulation, including enforcement, education, price monitoring and determining the terms of access to infrastructure services | 2013‑14 Estimated actual expenses $'000 |
2014‑15 Estimated expenses $'000 |
---|---|---|
Programme 1.1: Australian Competition and Consumer Commission | ||
Departmental expenses | ||
Departmental appropriation | 143,215 | 133,244 |
Revenues from independent sources (s31) | 870 | 1,250 |
Expenses not requiring appropriation in budget year | 3,711 | 4,938 |
Total for Programme 1.1 | 147,796 | 139,432 |
Programme 1.2: Australian Energy Regulator | ||
Departmental expenses | ||
Departmental appropriation | 36,302 | 34,226 |
Expenses not requiring appropriation in budget year | 898 | 842 |
Total for Programme 1.2 | 37,200 | 35,068 |
Outcome 1 Total by appropriation type | ||
Departmental expenses | ||
Departmental appropriation | 179,517 | 167,470 |
Revenues from independent sources (s31) | 870 | 1,250 |
Expenses not requiring appropriation in budget year | 4,609 | 5,780 |
Total expenses for Outcome 1 | 184,996 | 174,500 |
2013‑14 | 2014‑15 | |
Average staffing level (number) | 790 | 735 |
Contributions to Outcome 1
Programme 1.1: Australian Competition and Consumer Commission
Programme objective
The ACCC programme objective is to achieve compliance with the CCA, and associated legislation in order to protect, strengthen and supplement the way competition works in Australian markets and industries to improve the efficiency of the economy and to increase the welfare of Australians. This means the ACCC will take actions that: improve consumer welfare; promote the long-term interest of end users in regulated sectors; protect competition; open markets to competition; or stop conduct that is anti‑competitive or harmful to consumers.
Programme expenses
There are no significant changes to estimates across the forward years.
2013‑14 Revised budget $'000 |
2014‑15 Budget $'000 |
2015‑16 Forward year 1 $'000 |
2016‑17 Forward year 2 $'000 |
2017‑18 Forward year 3 $'000 |
|
---|---|---|---|---|---|
Programme 1.1: Australian Competition and Consumer Commission | |||||
Annual departmental expenses | |||||
Departmental items | 147,796 | 139,432 | 136,786 | 136,469 | 135,360 |
Total programme expenses | 147,796 | 139,432 | 136,786 | 136,469 | 135,360 |
Programme deliverables
To promote compliance with federal competition, fair trading, consumer protection and product safety laws, and to regulate markets where there is limited competition, the ACCC will:
Maintain and promote competition and remedy market failure
- deliver outcomes to address harm to consumer welfare through anti‑competitive conduct and improve competition under the priority areas identified in the ACCC's Compliance and Enforcement Policy;
- assess and review mergers to prevent structural changes that substantially lessen competition with a particular focus on concentrated and emerging markets and markets of significance to the Australian economy;
- make decisions on authorisation and notification applications and merger reviews thoroughly and efficiently and give clear guidance to merger parties, authorisation and notification applicants, and market participants; and
- improve the workability of emerging markets by advising on and enforcing industry‑specific rules and monitoring market outcomes.
Protect the interests and safety of consumers and support fair trading in markets affecting consumers and small business
- deliver outcomes under the priority areas identified in the ACCC's Compliance and Enforcement Policy to improve compliance with the Australian Consumer Law;
- multiply the effectiveness of ACCC's compliance and enforcement initiatives through an active programme of stronger and managed partnerships with Australian Consumer Law regulators and law enforcement agencies;
- identify and implement nationally integrated approaches to minimise the risk of injury and death from safety hazards in consumer products;
- support a vibrant small business sector, deter anti‑competitive and unconscionable conduct targeted at small business, and facilitate collective conduct by small business operators where that conduct is assessed to provide a net public benefit; and
- empower consumers to assert their rights under the Australian Consumer Law to secure fairer outcomes in the marketplace.
Promote the economically efficient operation of, use of, and investment in monopoly infrastructure
- deliver network regulation to promote competition and meet the long‑term interests of end‑use rs;
- improve the workability of emerging markets by enforcing market rules and monitoring market outcomes;
- respond to government requests to provide monitoring reports on industries in highly concentrated and newly deregulated or emerging markets; and
- improve regulatory practices and processes, including by building relationships with domestic and international regulatory agencies to leverage their experience.
Programme key performance indicators
In order to assess the effectiveness of the ACCC in delivering its objectives, the ACCC has the following key performance indicators:
Maintain and promote competition and remedy market failure
- outcomes and impact of actions and policies to promote competition;
- improved levels of effective competition and more informed and better functioning markets; and
- prevention of structural change in markets (particularly concentrated markets, emerging markets and markets of significance to the Australian economy) that substantially lessens competition.
Protect the interests and safety of consumers and support fair trading in markets affecting consumers and small business
- outcomes and impact of actions to prevent or address consumer harm or unfair trading; and
- efficiency and effectiveness of actions to promote consumer safety and fair trading and consumer awareness and assertion of their consumer law rights.
Promote the economically efficient operation of, use of, and investment in monopoly infrastructure
- timely, considered and evidence‑based regulatory decisions based on constructive engagement and complemented by effective enforcement and compliance activities;
- timely provision of accurate advice to government including evaluating the effectiveness of frameworks such as access regimes; and
- accurate, targeted and accessible reports on industry and competitive conditions, including pricing practices.
Programme 1.2: Australian Energy Regulator
Programme objective
The AER is the national energy market regulator. The AER's roles encompass the retail and wholesale electricity and gas markets and energy network infrastructure.
The objectives of the national energy legislation guide the AER's priorities and work programme. The common objective through the legislation is to promote efficient investment in, and efficient operation and use of, energy services for the long‑term interests of end users of energy.
Programme expenses
There are no significant changes to estimates across the forward years.
2013‑14 Revised budget $'000 |
2014‑15 Budget $'000 |
2015‑16 Forward year 1 $'000 |
2016‑17 Forward year 2 $'000 |
2017‑18 Forward year 3 $'000 |
|
---|---|---|---|---|---|
Programme 1.2: Australian Energy Regulator | |||||
Annual departmental expenses | |||||
Departmental items | 37,200 | 35,068 | 34,516 | 34,010 | 34,344 |
Total programme expenses | 37,200 | 35,068 | 34,516 | 34,010 | 34,344 |
Programme deliverables
Delivering better network regulation
- promote efficient investment in, and efficient operation and use of, energy services for the long-term interests of consumers;
- implement network guidelines that cover how the AER:
- assesses the regulated return on capital;
- scrutinises network businesses' expenditure proposals;
- encourages efficient investment; and
- engages consumers in the regulatory process.
- develop benchmarking of network businesses;
- consult widely, including closely involving consumers in the regulatory processes;
- gain advice from the newly established Consumer Challenge Panel; and
- make transparent decisions within statutory time limits.
Building consumer confidence in retail energy markets
- promote a culture of regulatory compliance by energy businesses, including through compliance monitoring activities, investigations and reviews;
- monitor and report on retail energy markets and the performance of retailers active in those markets;
- assess applications for entry into the retail energy market and provide guidance to potential applicants so that authorised retailers and exempt sellers are aware of and can meet their obligations under the Retail Law; and
- enhance the functionality of the Energy Made Easy website to provide consumers with additional tools to assist them navigate the retail energy market and understand their rights and available retail energy offers.
Supporting the efficient operation of energy markets
- promote more efficient, competitive, transparent and secure energy wholesale and retail markets through compliance monitoring activities, investigations and reviews;
- take effective, targeted and timely enforcement action when necessary, and promote best practice through compliance publications and audits;
- report on market activities and pricing outcomes to detect consumer harm, market irregularities and manipulation; and
- publish information on energy markets.
Programme key performance indicators
Organisation-wide
- stakeholders perceive the AER as a transparent and consultative decision making body;
- write all public documents clearly and include plain English explanations;
- apply a risk-based approach to compliance and monitoring activities;
- investigate and close major compliance matters in a timely manner and take appropriate enforcement action; and
- publish the AER's annual State of the Energy Market Report.
Delivering better network regulation
- decisions consistent with the legislative framework and made within statutory time limits;
- all stakeholders provided with an adequate opportunity to actively participate and engage in regulatory processes;
- publish regulatory decisions that clearly set out how we accounted for stakeholder views, including those of the Consumer Challenge Panel;
- regulatory decisions draw on improved data systems, information requirements, analysis techniques and metrics;
- draw on increased in-house technical expertise, including engineering capabilities; and
- publish the first annual benchmarking report.
Building consumer confidence in retail energy markets
- undertake compliance and enforcement activities that improve market outcomes for consumers;
- accurate, timely and accessible reports on the performance of the energy market within six weeks of the data being available;
- assess applications from businesses to become energy retailers or grant exemptions from the requirement within 12 weeks of the receipt of all relevant information; and
- clear, accurate and accessible information for consumers on energy retail markets, through the Energy Made Easy website.
Supporting the efficient operation of energy markets
- publish quarterly compliance reports within six weeks of the end of the relevant quarter;
- conduct audits of participant systems that are critical to market efficiency and energy security;
- conduct a series of targeted compliance reviews;
- report on outcomes in gas spot markets in Victoria, Short Term Trading Market and the Wallumbilla Hubs; and
- publish reports on extreme price events in the National Electricity Market and significant price variations in spot gas markets, within statutory timeframes.
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 2014‑15. It explains how budget plans are incorporated into the financial statements and provides further details of the reconciliation between appropriations, programme expenses and special accounts.
3.1 Explanatory tables
3.1.1 Movement of administered funds between years
The ACCC does not have any movement of administered funds between years.
3.1.2 Special accounts
Special accounts provide a means to set aside and record amounts used for specified purposes. Special accounts can be created by a Finance Minister's Determination under the Financial Management and Accountability Act 1997 (FMA Act) or under separate enabling legislation. Table 3.1.2 shows the expected additions (receipts) and reductions (payments) for each account used by the ACCC.
Special public moneys are held by the ACCC in a trustee capacity. The trust moneys are a result of court orders of which payments to the beneficiaries are pending. These moneys are temporarily held for the benefit of a person or entity other than the Australian Government. This special account is administered in nature and is governed by section 20 of the FMA Act.
Outcome | Opening balance 2014‑15 2013‑14 $'000 |
Receipts 2014‑15 2013‑14 $'000 |
Payments 2014‑15 2013‑14 $'000 |
Adjustments 2014‑15 2013‑14 $'000 |
Closing balance 2014‑15 2013‑14 $'000 |
|
---|---|---|---|---|---|---|
Services for Other Entities and Trust Moneys | 1 | 54 | - | - | - | 54 |
Account | 54 | - | - | - | 54 | |
Total special accounts | ||||||
2014‑15 Budget estimate | 54 | - | - | - | 54 | |
Total special accounts | ||||||
2013‑14 estimated actual | 54 | - | - | - | 54 |
3.1.3 Australian Government Indigenous expenditure
The ACCC does not have any Australian Government Indigenous expenditure.
3.2 Budgeted financial statements
The budgeted financial statements contain estimates prepared in accordance with the requirements of the government's financial budgeting and reporting framework, as well as specific guidelines issued by the Department of Finance. The statements show the planned financial performance for the 2014‑15 budget year and estimated actual for 2013‑14 for comparative purposes.
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
Departmental
Comprehensive income statement
The ACCC is budgeting to break even for 2014‑15 and each of the forward estimates.
Operating revenues
Total appropriation revenue for 2014‑15 is estimated to be $167.5 million. The ACCC received additional funding of $12.1 million in 2014‑15, $16.0 million in 2015‑16, $19.0 million in 2016‑17 and $17.7 million in 2017‑18.
Operating expenses
Total expenses in 2014‑15 are estimated to be $174.5 million. This is a decrease of $10.5 million from the 2013‑14 estimated actual.
3.2.3 Budgeted financial statements tables
Estimated actual 2013‑14 $'000 |
Budget estimate 2014‑15 $'000 |
Forward estimate 2015‑16 $'000 |
Forward estimate 2016‑17 $'000 |
Forward estimate 2017‑18 $'000 |
|
---|---|---|---|---|---|
EXPENSES | |||||
Employee benefits | 111,035 | 102,414 | 99,502 | 99,557 | 99,718 |
Suppliers | 69,427 | 66,381 | 65,173 | 64,979 | 64,973 |
Depreciation and amortisation | 4,534 | 5,705 | 6,627 | 5,943 | 5,013 |
Total expenses | 184,996 | 174,500 | 171,302 | 170,479 | 169,704 |
LESS: | |||||
OWN-SOURCE INCOME | |||||
Revenue | |||||
Sale of goods and rendering of services | 870 | 1,250 | 1,250 | 1,250 | 1,250 |
Total revenue | 870 | 1,250 | 1,250 | 1,250 | 1,250 |
Gains | |||||
Other gains | 75 | 75 | 75 | 75 | 75 |
Total gains | 75 | 75 | 75 | 75 | 75 |
Total own-source income | 945 | 1,325 | 1,325 | 1,325 | 1,325 |
Net cost of (contribution by) services | 184,051 | 173,175 | 169,977 | 169,154 | 168,379 |
Appropriation revenue | 179,517 | 167,470 | 163,350 | 163,211 | 163,366 |
Surplus (deficit) attributable to the Australian Government | (4,534) | (5,705) | (6,627) | (5,943) | (5,013) |
Note: Impact of Net Cash Appropriation Arrangements | |||||
2013‑14 $'000 |
2014‑15 $'000 |
2015‑16 $'000 |
2016‑17 $'000 |
2017‑18 $'000 |
|
Total Comprehensive Income (loss) less depreciation/amortisation expenses previously funded through revenue appropriations |
- | - | - | - | - |
plus depreciation/amortisation expenses previously funded through revenue appropriations |
(4,534) | (5,705) | (6,627) | (5,943) | (5,013) |
Total Comprehensive Income (loss) - as per the Statement of Comprehensive Income |
(4,534) | (5,705) | (6,627) | (5,943) | (5,013) |
Prepared on Australian Accounting Standards basis.
Estimated actual 2013‑14 $'000 |
Budget estimate 2014‑15 $'000 |
Forward estimate 2015‑16 $'000 |
Forward estimate 2016‑17 $'000 |
Forward estimate 2017‑18 $'000 |
|
---|---|---|---|---|---|
ASSETS | |||||
Financial assets | |||||
Cash and equivalents | 4,964 | 4,592 | 4,444 | 4,344 | 4,205 |
Trade and other receivables | 19,586 | 19,201 | 18,782 | 19,103 | 19,486 |
Total financial assets | 24,550 | 23,793 | 23,226 | 23,447 | 23,691 |
Non-financial assets | |||||
Land and buildings | 14,155 | 12,759 | 10,841 | 8,901 | 7,757 |
Infrastructure, plant and equipment | 5,951 | 4,819 | 3,687 | 2,555 | 1,423 |
Inventories | 22 | 22 | 22 | 22 | 22 |
Intangibles | 3,886 | 4,422 | 3,644 | 3,374 | 3,263 |
Other | 759 | 759 | 759 | 759 | 759 |
Total non-financial assets | 24,773 | 22,781 | 18,953 | 15,611 | 13,224 |
Total assets | 49,323 | 46,574 | 42,179 | 39,058 | 36,915 |
LIABILITIES | |||||
Provisions | |||||
Employees | 26,087 | 24,593 | 23,619 | 23,356 | 23,100 |
Other | 1,435 | 1,435 | 1,435 | 1,435 | 1,435 |
Total provisions | 27,522 | 26,028 | 25,054 | 24,791 | 24,535 |
Payables | |||||
Suppliers | 5,355 | 5,092 | 4,999 | 4,983 | 4,983 |
Other | 14,046 | 14,046 | 14,046 | 14,046 | 14,046 |
Total payables | 19,401 | 19,138 | 19,045 | 19,029 | 19,029 |
Total liabilities | 46,923 | 45,166 | 44,099 | 43,820 | 43,564 |
Net assets | 2,400 | 1,408 | (1,920) | (4,762) | (6,649) |
EQUITY | |||||
Contributed equity | 63,618 | 68,331 | 71,630 | 74,731 | 77,857 |
Reserves | 3,733 | 3,733 | 3,733 | 3,733 | 3,733 |
Retained surpluses or accumulated deficits | (64,951) | (70,656) | (77,283) | (83,226) | (88,239) |
Total equity | 2,400 | 1,408 | (1,920) | (4,762) | (6,649) |
Current assets | 24,550 | 23,793 | 23,226 | 23,447 | 23,691 |
Non-current assets | 24,773 | 22,781 | 18,953 | 15,611 | 13,224 |
Current liabilities | 19,401 | 19,138 | 19,045 | 19,029 | 19,029 |
Non-current liabilities | 27,522 | 26,028 | 25,054 | 24,791 | 24,535 |
Prepared on Australian Accounting Standards basis.
Estimated actual 2013‑14 $'000 |
Budget estimate 2014‑15 $'000 |
Forward estimate 2015‑16 $'000 |
Forward estimate 2016‑17 $'000 |
Forward estimate 2017‑18 $'000 |
|
---|---|---|---|---|---|
OPERATING ACTIVITIES | |||||
Cash received | |||||
Goods and services | 869 | 1,250 | 1,250 | 1,250 | 1,250 |
Appropriations | 182,050 | 167,470 | 163,350 | 163,211 | 163,366 |
Total cash received | 182,919 | 168,720 | 164,600 | 164,461 | 164,616 |
Cash used | |||||
Employees | 111,097 | 105,869 | 102,172 | 102,180 | 102,384 |
Suppliers | 69,925 | 64,223 | 63,076 | 62,881 | 62,871 |
Total cash used | 181,022 | 170,092 | 165,248 | 165,061 | 165,255 |
Net cash from or (used by) operating activities | 1,897 | (1,372) | (648) | (600) | (639) |
INVESTING ACTIVITIES | |||||
Cash used | |||||
Purchase of property, plant and equipment | 5,060 | 3,713 | 2,799 | 2,601 | 2,626 |
Total cash used | 5,060 | 3,713 | 2,799 | 2,601 | 2,626 |
Net cash from or (used by) investing activities | (5,060) | (3,713) | (2,799) | (2,601) | (2,626) |
FINANCING ACTIVITIES | |||||
Cash received | |||||
Appropriations - contributed equity | 7,535 | 4,713 | 3,299 | 3,101 | 3,126 |
Total cash received | 7,535 | 4,713 | 3,299 | 3,101 | 3,126 |
Net cash from or (used by) financing activities | 7,535 | 4,713 | 3,299 | 3,101 | 3,126 |
Net increase or (decrease) in cash held | 4,372 | (372) | (148) | (100) | (139) |
Cash at the beginning of the reporting period | 592 | 4,964 | 4,592 | 4,444 | 4,344 |
Cash at the end of the reporting period | 4,964 | 4,592 | 4,444 | 4,344 | 4,205 |
Prepared on Australian Accounting Standards basis.
Retained surpluses $'000 |
Asset revaluation reserve $'000 |
Contributed equity/capital $'000 |
Total equity $'000 |
|
---|---|---|---|---|
Opening balance as at 1 July 2014 | ||||
Balance carried forward from previous period | (64,951) | 3,733 | 63,618 | 2,400 |
Adjustments | - | |||
Adjusted opening balance | (64,951) | 3,733 | 63,618 | 2,400 |
Comprehensive income | ||||
Surplus (deficit) for the period | (5,705) | - | - | (5,705) |
Total comprehensive income recognised directly in equity | (5,705) | - | - | (5,705) |
Transactions with owners | ||||
Contribution by owners | ||||
Appropriation (equity injection) | - | - | 2,700 | 2,700 |
Appropriation (departmental capital budget) | - | - | 2,013 | 2,013 |
Total transactions with owners | - | - | 4,713 | 4,713 |
Estimated closing balance as at 30 June 2015 | (70,656) | 3,733 | 68,331 | 1,408 |
Prepared on Australian Accounting Standards basis.
Estimated actual 2013‑14 $'000 |
Budget estimate 2014‑15 $'000 |
Forward estimate 2015 209;16 $'000 |
Forward estimate 2016‑17 $'000 |
Forward estimate 2017‑18 $'000 |
|
---|---|---|---|---|---|
NEW CAPITAL APPROPRIATIONS | |||||
Capital budget - Bill 1 - DCB | 2,025 | 2,013 | 1,999 | 2,001 | 2,026 |
Equity injections - Bill 2 | 14,310 | 2,700 | 1,300 | 1,100 | 1,100 |
Total new capital appropriations | 16,335 | 4,713 | 3,299 | 3,101 | 3,126 |
Provided for: | |||||
Purchase of non-financial assets | 3,831 | 3,713 | 2,799 | 2,601 | 2,626 |
Other Items | 12,504 | 1,000 | 500 | 500 | 500 |
Total Items | 16,335 | 4,713 | 3,299 | 3,101 | 3,126 |
PURCHASE OF NON-FINANCIAL ASSETS | |||||
Funded by capital appropriation - DCB | 2,025 | 2,013 | 1,999 | 2,001 | 2,026 |
Funded by capital appropriations | 1,806 | 1,700 | 800 | 600 | 600 |
TOTAL | 3,831 | 3,713 | 2,799 | 2,601 | 2,626 |
RECONCILIATION OF CASH USED TO ACQUIRE ASSETS TO ASSET MOVEMENT TABLE | |||||
Total purchases | 3,831 | 3,713 | 2,799 | 2,601 | 2,626 |
Total cash used to acquire assets | 3,831 | 3,713 | 2,799 | 2,601 | 2,626 |
Prepared on Australian Accounting Standards basis.
Buildings $'000 |
Other infrastructure, plant & equipment $'000 |
Intangibles $'000 |
Total $'000 |
|
---|---|---|---|---|
As at 1 July 2014 | ||||
Gross book value | 18,154 | 8,705 | 11,112 | 37,971 |
Accumulated depreciation/amortisation and impairment | (3,999) | (2,754) | (7,226) | (13,979) |
Opening net book balance | 14,155 | 5,951 | 3,886 | 23,992 |
Capital asset additions | ||||
By purchase - appropriation ordinary annual services | 600 | - | 3,113 | 3,713 |
Total additions | 600 | - | 3,113 | 3,713 |
Other movements | ||||
Depreciation/amortisation expense | (1,996) | (1,132) | (2,577) | (5,705) |
Total other movements | (1,996) | (1,132) | (2,577) | (5,705) |
As at 30 June 2015 | ||||
Gross book value | 18,754 | 8,705 | 14,225 | 41,684 |
Accumulated depreciation/amortisation and impairment | (5,995) | (3,886) | (9,803) | (19,684) |
Closing net book balance | 12,759 | 4,819 | 4,422 | 22,000 |
Prepared on Australian Accounting Standards basis.
Estimated actual 2013‑14 $'000 |
Budget estimate 2014‑15 $'000 |
Forward estimate 2015‑16 $'000 |
Forward estimate 2016‑17 $'000 |
Forward estimate 2017‑18 $'000 |
|
---|---|---|---|---|---|
OWN-SOURCE INCOME | |||||
Own-source revenue | |||||
Non-taxation revenue | |||||
Fees and fines | 20,000 | 40,000 | 40,000 | 40,000 | 40,000 |
Total non-taxation revenue | 20,000 | 40,000 | 40,000 | 40,000 | 40,000 |
Total own-source revenues administered on behalf of Government |
20,000 | 40,000 | 40,000 | 40,000 | 40,000 |
Total own-sourced income administered on behalf of Government |
20,000 | 40,000 | 40,000 | 40,000 | 40,000 |
Prepared on Australian Accounting Standards basis.
Estimated actual 2013‑14 $'000 |
Budget estimate 2014‑15 $'000 |
Forward estimate 2015‑16 $'000 |
Forward estimate 2016‑17 $'000 |
Forward estimate 2017‑18 $'000 |
|
---|---|---|---|---|---|
ASSETS ADMINISTERED ON BEHALF OF GOVERNMENT | |||||
Financial assets | |||||
Cash and cash equivalents | 18 | 18 | 18 | 18 | 18 |
Receivables | 12,577 | 12,577 | 12,577 | 12,577 | 12,577 |
Total financial assets | 12,595 | 12,595 | 12,595 | 12,595 | 12,595 |
Total assets administered on behalf of Government | 12,595 | 12,595 | 12,595 | 12,595 | 12,595 |
Prepared on Australian Accounting Standards basis.
Estimated actual 2013‑14 $'000 |
Budget estimate 2014‑15 $'000 |
Forward estimate 2015‑16 $'000 |
Forward estimate 2016‑17 $'000 |
Forward estimate 2017‑18 $'000 |
|
---|---|---|---|---|---|
OPERATING ACTIVITIES | |||||
Cash received | |||||
Fees | 20,000 | 40,000 | 40,000 | 40,000 | 40,000 |
Total cash received | 20,000 | 40,000 | 40,000 | 40,000 | 40,000 |
Cash used | |||||
Other | 20,000 | 40,000 | 40,000 | 40,000 | 40,000 |
Total cash used | 20,000 | 40,000 | 40,000 | 40,000 | 40,000 |
Net cash from or (used by) operating activities | - | - | - | - | - |
Net increase or (decrease) in cash held | - | - | - | - | - |
Cash at beginning of reporting period | 18 | 18 | 18 | 18 | 18 |
Cash at end of reporting period | 18 | 18 | 18 | 18 | 18 |
Prepared on Australian Accounting Standards basis.
3.2.4 Notes to the financial statements
Accounting policy
The budgeted financial statements have been prepared on an accrual accounting basis having regard to statements of accounting concepts, and in accordance with:
- the Government's financial budgeting and reporting framework; and
- Australian Accounting Standards and Interpretations issued by the Australian Accounting Standards Board.
Departmental and administered items
Agency assets, liabilities, revenues and expenses are those items that are controlled by the ACCC that are used by the ACCC in producing its programme and include:
- computers, plant and equipment and building fitout used in providing goods and services;
- liabilities for employee entitlements;
- revenue from appropriations or independent sources in payment for the departmental programme; and
- employee, supplier and depreciation expenses incurred in providing agency programme.
Administered items are those items incurred in providing programmes that are controlled by the Government and managed, or oversighted by the ACCC on behalf of the government. Administered revenues include fees and fines.
Departmental revenue
Revenue from government represents the purchase of outputs from the ACCC by the Government and is recognised to the extent that it has been received into the ACCC's bank account.
Revenue from other sources, representing sales from goods and services, is recognised at the time that it is imposed on customers.
Departmental expenses — employees
Payments and net increases in entitlements to employees for services rendered in the financial year.
Departmental expenses — suppliers
Payments to suppliers for goods and services used in providing agency programmes.
Departmental expenses — depreciation and amortisation
Depreciable property, plant and equipment, buildings and intangible assets are written‑off to their estimated residual values over their estimated useful life, using the straight‑line calculation method.
Departmental assets — financial assets
The primary financial asset relates to receivables. Financial assets are used to fund the ACCC's capital programme, employee entitlements, creditors and to provide working capital.
Departmental assets — non‑financial assets
These items represent future benefits that the ACCC will consume in producing outputs. The reported value represents the purchase paid less depreciation incurred to date in using the asset.
Departmental liabilities — provisions and payables
Provision has been made for the ACCC's liability for employee entitlements arising from services rendered by employees. The liability includes unpaid annual leave and long service leave.
Provision has also been made for unpaid expenses as at balance date.