Part C: Agency Additional Estimates Statements Agency Name

PORTFOLIO ADDITIONAL ESTIMATES STATEMENTS 2012-13

HEALTH AND AGEING PORTFOLIO

EXPLANATIONS OF ADDITIONAL ESTIMATES 2012-13 Part C: Agency Additional Estimates Statements — Agency

ii ISBN: 978-1-74241-865-0 Online ISBN: 978-1-74241-866-7 Publications Number: D1049

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Printed by CanPrint Communications Pty Ltd. Senator the Hon. John Hogg President of the Senate Australian Senate Parliament House CANBERRA ACT 2600

The Hon Anna Burke MP Speaker House of Representatives Parliament House CANBERRA ACT 2600

Dear Mr President Dear Madam Speaker

I hereby submit Portfolio Additional Estimates Statements in support of the 2012-13 Additional Estimates for the Health and Ageing Portfolio.

These statements have been developed, and are submitted to the Parliament, as a statement on the funding requirements being sought for the Portfolio.

I present these statements by virtue of my ministerial responsibility for accountability to the Parliament and, through it, the public.

Yours sincerely

Tanya Plibersek

iv CONTENTS

User Guide...... ix Styles and Conventions Used...... ix Structure of the Portfolio Additional Estimates Statements...... x Portfolio Overview...... 3 Department of Health and Ageing...... 13 Section 1: Agency Overview and Resources...... 13 1.1 Strategic Direction...... 13 1.2 Agency Resource Statement...... 14 1.3 Agency Measures Table...... 18 1.4 Additional Estimates and Variations...... 28 1.5 Breakdown of Additional Estimates by Appropriation Bill...... 29 Section 2: Revisions to Agency Resources and Planned Performance...... 33 2.1 Resources and Performance Information...... 33 Cross Outcome Variations...... 33 Outcome 1 Population Health...... 35 Outcome 2 Access to Pharmaceutical Services...... 42 Outcome 3 Access to Medical Services...... 50 Outcome 4 Aged Care and Population Ageing...... 56 Outcome 5 Primary Care...... 65 Outcome 6 Rural Health...... 69 Outcome 7 Hearing Services...... 71 Outcome 8 Indigenous Health...... 73 Outcome 9 Private Health...... 75 Outcome 10 Health System Capacity and Quality...... 77 Outcome 11 Mental Health...... 83 Outcome 12 Health Workforce Capacity...... 87 Outcome 13 Acute Care...... 90 Outcome 14 Biosecurity and Emergency Response...... 94 Section 3: Explanatory Tables and Budgeted Financial Statements...... 97 3.1 Explanatory Tables...... 97 3.2 Budgeted Financial Statements...... 98 National Blood Authority...... 115 Section 1: Agency Overview and Resources...... 115 1.1 Strategic Direction...... 115 1.2 Agency Resource Statement...... 115

v 1.3 Agency Measures Table...... 117 1.4 Additional Estimates and Variations...... 117 1.5 Breakdown of Additional Estimates by Appropriation Bill....118 Section 2: Revisions to Agency Resources and Planned Performance...... 121 2.1 Resources and Performance Information...... 121 Section 3: Explanatory Tables and Budgeted Financial Statements...... 123 3.1 Explanatory Tables...... 123 3.2 Budgeted Financial Statements...... 124 National Health Performance Authority...... 137 Section 1: Agency Overview and Resources...... 137 1.1 Strategic Direction...... 137 1.2 Agency Resource Statement...... 138 1.3 Agency Measures Table...... 139 1.4 Additional Estimates and Variations...... 139 1.5 Breakdown of Additional Estimates by Appropriation Bill....140 Section 2: Revisions to Agency Resources and Planned Performance...... 141 2.1 Resources and Performance Information...... 141 Section 3: Explanatory Tables and Budgeted Financial Statements...... 143 3.1 Explanatory Tables...... 143 3.2 Budgeted Financial Statements...... 143 Glossary...... 155

vi USER GUIDE TO THE PORTFOLIO ADDITIONAL ESTIMATES STATEMENTS

vii USER GUIDE

The purpose of the Portfolio Additional Estimates Statements (PAES), like that of the Portfolio Budget Statements (PB Statements), is to inform Senators and Members of Parliament and the public of the proposed allocation of resources to Government outcomes by agencies within the portfolio. The focus of the PAES differs from the PB Statements in one important aspect. While the PAES include an Agency Resource Statement to inform Parliament of the revised estimate of the total resources available to an agency, the focus of the PAES is on explaining the changes in resourcing by outcome(s) since the Budget. As such, the PAES provides information on new measures and their impact on the financial and/or non-financial planned performance of programs supporting those outcomes.

The PAES facilitate understanding of the proposed appropriations in Appropriation Bills (No. 3 and No. 4) 2012-13. In this sense the PAES is declared by the Additional Estimates Appropriation Bills to be a ‘relevant document’ to the interpretation of the Bills according to section 15AB of the Acts Interpretation Act 1901.

Whereas the Mid-Year Economic and Fiscal Outlook 2012-13 is a mid-year budget report which provides updated information to allow the assessment of the Government’s fiscal performance against its fiscal strategy, the PAES update the most recent budget appropriations for agencies within the portfolio.

STYLES AND CONVENTIONS USED

(a) The following notations may be used:

NEC/nec not elsewhere classified AEST Australian Eastern Standard Time - nil .. not zero, but rounded to zero na not applicable (unless otherwise specified) nfp not for publication $m $ million p split across outcomes

(b) Figures in tables and in the text may be rounded. Discrepancies in tables between totals and sums of components are due to rounding.

viii STRUCTURE OF THE PORTFOLIO ADDITIONAL ESTIMATES STATEMENTS

The Portfolio Additional Estimates Statements are presented in three parts with subsections.

User guide Provides a brief introduction explaining the purpose of the PAES.

Portfolio overview Provides an overview of the portfolio, including a chart that outlines the outcomes for agencies in the portfolio.

Agency additional estimates statements A statement (under the name of the agency) for each agency affected by Additional Estimates. Section 1: This section details the total resources available Agency overview to an agency, the impact of any measures since and resources Budget, and impact on Appropriation Bills No. 3 and No. 4. Section 2: This section details changes to Government Revisions to outcomes and/or changes to the planned outcomes and performance of agency programs. planned performance Section 3: This section contains updated explanatory tables Explanatory on special account flows and staffing levels and tables and revisions to the budgeted financial statements. budgeted financial statements Glossary Explains key terms relevant to the Portfolio.

ix PORTFOLIO OVERVIEW PORTFOLIO OVERVIEW

The Health and Ageing portfolio works towards achieving a health care system that meets the health care and ageing needs of all Australians. Since the 2012-13 Budget the Government has announced investments of $4.1 billion over six years for the Government’s Dental Health Reform package, $325 million over four years for the Tasmanian health system and $183 million over four years for new and amended listings to the Pharmaceutical Benefits Scheme. The Government has announced savings of $700 million through indexing the Government’s contribution to private health insurance and $386 million over four years through the removal of the Private Health Insurance (PHI) Rebate on the Lifetime Health Cover loading component of PHI premiums.

Ministerial Changes

On 2 February 2013 the Prime Minister announced changes to the Ministry which included the appointment of the Hon Melissa Parke MP as the Parliamentary Secretary for Mental Health.

Portfolio Structure

Since the 2012-13 Budget one new Portfolio agency has been established. The National Health Funding Body was established on 25 June 2012 under the National Health Reform Act 2011 to provide transparent, comparable and efficient administration of Commonwealth and state and territory funding of the Australian public hospital system, and support the obligations and responsibilities of the Administrator of the National Health Funding Pool under common multi-jurisdictional health reform legislation. This will promote transparency in the reporting of public hospital funding. A list of all the 19 agencies currently within the Health and Ageing portfolio can be found in Figure 1 below.

2 Health and Ageing Portfolio

Figure 1: Portfolio Structure and Outcomes The Hon Tanya Plibersek MP The Hon Mark Butler MP Minister for Health Minister for Mental Health and Portfolio Responsibilities Ageing Department of Health and Ageing: Portfolio Responsibilities Outcomes: 1, 2, 3, 5, 6, 8, 9, Department of Health and Ageing: 10, 12, 13 and 14 Outcomes 1, 4, 7 and 11 Agencies: Agencies: ACSQHC, AIHW, ANPHA, CA, ACSAA GPET, HWA, IHPA, NHFB, Performance Authority, NHMRC, PHIAC, PHIO and PSR

The Hon Warren Snowdon MP Minister for Indigenous Health Portfolio Responsibilities Department of Health and Ageing: Outcomes 1 and 8

The Hon Catherine King MP The Hon Melissa Parke MP Parliamentary Secretary for Parliamentary Secretary for Health and Ageing Mental Health Portfolio Responsibilities Portfolio Responsibilities Department of Health and Ageing: Department of Health and Ageing: Outcomes 1, 13 and 14 Outcome 11 Agencies: AOTDTA, ARPANSA, FSANZ and NBA

3 Department of Health and Ageing

Figure 1: Portfolio Structure and Outcomes (Cont.) – Portfolio Agencies

Department of Health and Ageing – Jane Halton PSM Secretary

Outcome 1. Population Health Outcome 8. Indigenous Health A reduction in the incidence of preventable Closing the gap in life expectancy and child mortality and morbidity in Australia, including mortality rates for Indigenous Australians, through regulation and national initiatives including through primary health care, child that support healthy lifestyles and disease and maternal health, and substance use prevention. services. Outcome 2. Access to Pharmaceutical Outcome 9. Private Health Services Improved choice in health services by Access to cost-effective medicines, including supporting affordable quality private health through the Pharmaceutical Benefits care, including through private health Scheme and related subsidies, and insurance rebates and a regulatory assistance for medication management framework. through industry partnerships. Outcome 10. Health System Capacity and Outcome 3. Access to Medical Services Quality Access to cost-effective medical, practice Improved long-term capacity, quality and nursing and allied health services, including safety of Australia’s health care system to through Medicare subsidies for clinically meet future health needs, including through relevant services. investment in health infrastructure, Outcome 4. Aged Care and Population international engagement, consistent Ageing performance reporting and research. Access to quality and affordable aged care Outcome 11. Mental Health and carer support services for older people, Improved mental health and suicide including through subsidies and grants, prevention, including through targeted industry assistance, training and regulation prevention, identification, early intervention of the aged care sector. and health care services. Outcome 5. Primary Care Outcome 12. Health Workforce Capacity Access to comprehensive, community-based Improved capacity, quality and mix of the health care, including through first point of health workforce to meet the requirements of call services for prevention, diagnosis and health services, including through training, treatment of ill-health, and for ongoing registration, accreditation and distribution management of chronic disease. strategies. Outcome 6. Rural Health Outcome 13. Acute Care Access to health services for people living in Improved access to public hospitals, acute rural, regional and remote Australia, care services and public dental services, including through health infrastructure and including through targeted strategies, and outreach services. payments to state and territory governments. Outcome 7. Hearing Services Outcome 14. Biosecurity and Emergency A reduction in the incidence and Response consequence of hearing loss, including Preparedness to respond to national health through research and prevention activities, emergencies and risks, including through and access to hearing services and devices surveillance, regulation, prevention, for eligible people. detection and leadership in national health coordination.

4 Portfolio Overview

Aged Care Standards and Accreditation Australian Radiation Protection and Agency Ltd Nuclear Safety Agency Mr Mark Brandon Chief Executive Officer Dr Carl-Magnus Larsson Chief Executive Officer Outcome 1. High quality residential aged care for older people, including through Outcome 1. Protection of people and the accrediting Australian Government funded environment through radiation protection aged care homes, identifying best practice, and nuclear safety research, policy, advice, and providing information and education to codes, standards, services and regulation. the aged care sector. Cancer Australia Australian Commission on Safety and Dr Helen Zorbas Chief Executive Officer Quality in Health Care Outcome 1. Minimised impacts of cancer, Prof Debora Picone AM Chief Executive including through national leadership in Officer cancer control with targeted research, Outcome 1. Improved safety and quality in cancer service development, education and health care across the health system, consumer support. including through the development, support Food Standards Australia New Zealand for implementation, and monitoring of Mr Stephen McCutcheon Chief Executive national clinical safety and quality guidelines Officer and standards. Outcome 1. A safe food supply and well- Australian Institute of Health and Welfare informed consumers in Australia and New Mr David Kalisch Director Zealand, including through the development Outcome 1. A robust evidence-base for the of food regulatory measures and the health, housing and community sectors, promotion of their consistent including through developing and implementation, coordination of food recall disseminating comparable health and activities and the monitoring of consumer welfare information and statistics. and industry food practices. Australian National Preventive Health General Practice Education and Training Agency Ltd Ms Louise Sylvan Chief Executive Officer Ms Megan Cahill Chief Executive Officer Outcome 1. A reduction in the prevalence of Outcome 1. Improved quality and access to preventable disease, including through primary care across Australia, including research and evaluation to build the through general practitioner vocational evidence base for future action, and by education and training for medical managing lifestyle education campaigns and graduates. developing partnerships with non- Health Workforce Australia government sectors. Mr Mark Cormack Chief Executive Officer Australian Organ and Tissue Donation Outcome 1. Improved health workforce and Transplantation Authority capacity, including through a national Ms Yael Cass Chief Executive Officer approach to workforce policy and planning Outcome 1. Improved access to organ and across all health disciplines, which tissue transplants, including through a effectively integrates research, education nationally coordinated and consistent and training. approach and system.

Private Health Insurance Administration Independent Hospital Pricing Authority Council Dr Tony Sherbon Chief Executive Officer Mr Shaun Gath Chief Executive Officer Outcome 1. Promote improved efficiency in, Outcome 1. Prudential safety and and access to, public hospital services competitiveness of the private health primarily through setting efficient national insurance industry in the interests of prices and levels of block funding for consumers, including through efficient hospital activities. industry regulation. National Blood Authority Private Health Insurance Ombudsman Mr Leigh McJames Chief Executive Officer Ms Samantha Gavel Ombudsman Outcome 1. Access to a secure supply of Outcome 1. Public confidence in private safe and affordable blood products, health insurance, including through including through national supply consumer and provider complaint and arrangements and coordination of best enquiry investigations, and performance practice standards within agreed funding monitoring and reporting. policies under the national blood arrangements. Professional Services Review National Health and Medical Research Dr William Coote Director Council Outcome 1. A reduction of the risks to Prof Warwick Anderson AM Chief patients and costs to the Australian Executive Officer Government of inappropriate clinical practice, including through investigating Outcome 1. Improved health and medical health services claimed under the Medicare knowledge, including through funding and Pharmaceutical benefits schemes. research, translating research findings into evidence-based clinical practice, administering legislation governing research, issuing guidelines and advice for ethics in health and the promotion of public health. National Health Funding Body1 Mr Lynton Norris A/g Chief Executive Officer National Health Performance Authority Dr Diane Watson Chief Executive Officer Outcome 1. Contribute to transparent and accountable health care services in Australia, including through the provision of independent performance monitoring and reporting; the formulation of performance indicators; and conducting and evaluating research.

1 The National Health Funding Body was established on 25 June 2012 by the National Health Reform Act 2011 as a new agency within the Health and Ageing Portfolio. An outcome statement is yet to be finalised.

6 Portfolio Overview

7 Health and Ageing Portfolio

Portfolio Resources Table 1 shows for those agencies reporting in the Portfolio Additional Estimates Statements the additional resources provided to the portfolio in the 2012-13 budget year, by agency.

Movement in Portfolio Resources Made Available in 2012-13

Appropriation movements Total Bill No. Bill No. 4 Special Receipts2 31 $'000 $'000 $'000 $'000 $'000 Departmental Department of Health and Ageing 11,959 - - 9,110 21,069 National Blood Authority 676 - - 398 1,074 National Health Performance Authority - - - 1,501 1,501 Total Departmental 12,635 - - 11,009 23,644 Administered Department of Health and Ageing 43,823 - 651,002 (2,047) 692,778 National Blood Authority - - - - - National Health Performance Authority - - - - - Total Administered 43,823 - 651,002 (2,047) 692,778 Total portfolio 56,458 - 651,002 8,962 716,422 Equity injections - Non operating administered assets and liabilities - Total portfolio appropriations and receipts 716,422

1Administered Bill No. 3 does not include notional reductions to the 2012-13 Budget Bill No.1. For notional reductions to the Budget Bill No. 1 see Table 1.5 in the agency chapters. 2Excludes receipts from related entities from within portfolio.

8 AGENCY ADDITIONAL ESTIMATES STATEMENTS

Department of Health and Ageing 11 National Blood Authority 109 National Health Performance Agency 129

Department of Health and Ageing 11 Section 1: Agency Overview and Resources 11 1.1 Strategic Direction ...... 113 1.2 Agency Resource Statement ...... 124 1.3 Agency Measures Table ...... 188 1.4 Additional Estimates and Variations ...... 288 1.5 Breakdown of Additional Estimates by Appropriation Bill 299 Section 2: Revisions to Agency Resources and Planned Performance 323 2.1 Resources and Performance Information ...... 32 Cross Outcome Variations ...... 32 Outcome 1 Population Health ...... 335 Outcome 2 Access to Pharmaceutical Services ...... 412 Outcome 3 Access to Medical Services ...... 4850 Outcome 4 Aged Care and Population Ageing ...... 556 Outcome 5 Primary Care ...... 635 Outcome 6 Rural Health ...... 689 Outcome 7 Hearing Services ...... 71 Outcome 8 Indigenous Health ...... 73 Outcome 9 Private Health ...... 75 Outcome 10 Health System Capacity and Quality ...... 77 Outcome 11 Mental Health ...... 83 Outcome 12 Health Workforce Capacity ...... 857 Outcome 13 Acute Care ...... 8890 Outcome 14 Biosecurity and Emergency Response ...... 94 Section 3: Explanatory Tables and Budgeted Financial Statements 947 3.1 Explanatory Tables ...... 947 3.2 Budgeted Financial Statements ...... 968

10 DEPARTMENT OF HEALTH AND AGEING

Section 1: Agency Overview and Resources

1.1 STRATEGIC DIRECTION

Since the 2012-13 Budget the Government has announced more than $2.6 billion over four years in investments to improve critical health and aged care services in Australia. These include significant investments to improve dental health care, assistance to Tasmania to address issues with its health system, and new and amended drug listings under the Pharmaceutical Benefits Scheme.

The dental package announced by the Australian Government on 29 August 2012 invests $4.1 billion over six years to support an improved dental health system including:  $2.7 billion over six years to establish Growing Up Smiling, a Child Dental Benefits Schedule which will subsidise basic dental treatment for eligible children aged 2 to 17 years;

 $1.3 billion to expand public dental services to adults on low incomes, including pensioners and concession card holders; and

 $225 million for Dental Flexible Grants to support dental infrastructure and workforce initiatives in outer metropolitan, regional, rural and remote areas from 2014-15. The Government will redirect $480.5 million from closing the Medicare Teen Dental Plan from 1 January 2014 to support the dental package.

In addition the Australian government has provided $325 million over four years to Tasmania to address challenges caused by Tasmania’s ageing population, high rates of chronic disease and constraints in their health system and $183 million over four years for a number of new and amended listings on the Pharmaceutical Benefits Scheme including:  Lyrica® (pregabalin) for the treatment of chronic nerve pain;

 Bronchitol® (mannitol), for the treatment of mucus build-up in the lungs of patients with cystic fibrosis;

 Eylea® (aflibercept), for the treatment of age-related macular degeneration;

 Jevtana® (cabazitaxel), for the treatment of a certain type of metastic prostate cancer;

 Firazyr® (icatibant), for the treatment of attacks of hereditary angioedema (unpredictable episodes of swelling that can impede breathing); and

 Myfortic® (mycophenolate sodium), for the treatment of kidney inflammation caused by lupus (lupus nephritis).

The Government has announced savings of $700 million through indexing the Government’s contribution to private health insurance and a $386 million saving over four years through the removal of the Private Health Insurance (PHI) Rebate on the Lifetime Health Cover loading component of PHI premiums.

1.2 AGENCY RESOURCE STATEMENT

The Agency Resource Statement details the resourcing for the Department of Health and Ageing at Additional Estimates. Table 1.1 outlines the total resourcing available from all sources for the 2012-13 Budget year, including variations through Appropriation Bills No. 3 and No. 4, special appropriations and special accounts.

Table 1.1: Department of Health and Ageing Resource Statement

Estimate as Proposed Total Total at Budget Additional estimate available Estimates at AEs appropriation 2012-13 2012-13 2012-13 2011-12 $'000 $'000 $'000 $'000 Departmental resources Ordinary annual services Estimates of prior year amounts available in 2012-131,2 188,998 - 188,998 227,958 Departmental appropriation3,4 619,187 11,959 631,146 637,268 s31 Relevant agency receipts 21,422 1,681 23,103 61,190 Total ordinary annual services 829,607 13,640 843,247 926,416 Other Services5 Non-operating Equity injections 52,510 - 52,510 24,613 Total Other Services 52,510 - 52,510 24,613 Departmental special accounts6 Opening balance2 70,243 - 70,243 58,315 Appropriation receipts 10,819 1,035 11,854 15,350 Non-appropriation receipts to Special accounts7 131,005 7,429 138,434 122,144

12 Section 1 – Agency Overview and Resources

Total special accounts 212,067 8,464 220,531 195,809 Total departmental resourcing 1,094,184 22,104 1,116,288 1,146,838 Less appropriations drawn from annual or special appropriations above and credited to Special Accounts and/or CAC Act bodies through annual appropriations (10,819) (1,035) (11,854) (15,350) Total net departmental resourcing for Health and Ageing 1,083,365 21,069 1,104,434 1,131,488

Table 1.1: Department of Health and Ageing Resource Statement (cont)

Estimate as Proposed Total Total at budget additional estimate available estimates at AEs appropriation 2012-13 2012-13 2012-13 2011-12 $'000 $'000 $'000 $'000 Administered resources Ordinary annual services3 Outcome 1: Population Health 364,516 1,520 366,036 324,120 Outcome 2: Access to Pharmaceutical Services 660,061 15,510 675,571 617,667 Outcome 3: Access to Medical Services 115,171 - 115,171 107,874 Outcome 4: Aged Care and Population Ageing 2,027,190 (26,509) 2,000,681 546,406 Outcome 5: Primary Care 866,574 (17,500) 849,074 854,230 Outcome 6: Rural Health 87,230 250 87,480 100,058 Outcome 7: Hearing Services 404,179 78 404,257 378,048 Outcome 8: Indigenous Health 705,659 - 705,659 684,911 Outcome 9: Private Health 2,591 2,500 5,091 3,655 Outcome 10: Health System Capacity and Quality 146,375 1,524 147,899 530,029 Outcome 11: Mental Health 385,737 859 386,596 255,101 Outcome 12: Health Workforce Capacity 1,320,381 787 1,321,168 1,103,405 Outcome 13: Acute Care8 130,123 (9,641) 120,482 88,103 Outcome 14: Biosecurity and Emergency Response 21,398 485 21,883 25,679 Payments to CAC Act Bodies 34,748 (116) 34,632 37,325 Total ordinary annual services 7,271,933 (30,253) 7,241,680 5,656,611 Other services5 Payments to States, ACT, NT and local government Outcome 1: Population Health 15,226 - 15,226 25,793 Total payments 15,226 - 15,226 25,793 Administered non-operating Administered assets and liabilities 19,793 - 19,793 120,462 Total non-operating 19,793 - 19,793 120,462 Total other services 35,019 - 35,019 146,255

Table 1.1: Department of Health and Ageing Resource Statement (cont)

Estimate as Proposed Total Total at budget additional estimate available estimates at AEs appropriation 2012-13 2012-13 2012-13 2011-12 $'000 $'000 $'000 $'000 Administered resources (cont.) Special appropriations limited by criteria/entitlement National Health Act 1953 - essential vaccines 51,102 21,771 72,873 37,010 National Health Act 1953 - pharmaceutical benefits 9,734,204 (119,748) 9,614,456 9,056,737 National Health Act 1953 - aids and appliances 284,682 - 284,682 262,811 Health Insurance Act 1973 - 17,762,80 18,109,85 medical benefits 5 347,053 8 17,826,148 Dental Benefits Act 2008 83,087 - 83,087 57,409 Aged Care Act 1997 - flexible care subsidies 868,076 26,719 894,795 834,932 Aged Care Act 1997 - residential care subsidies 7,710,485 60,071 7,770,556 7,420,201 Aged Care Act 1997 - community care subsidies 589,743 5,843 595,586 561,811 National Health Act 1953 - continence aids payment scheme 63,326 - 63,326 51,607 Aged Care (Bond Security) Act 2006 - - - - Private Health Insurance Act 2007 4,158,297 312,504 4,470,801 5,473,209 National Health Act 1953 - blood fractionation, products and blood related products to National Blood Authority 681,848 - 681,848 640,251 Medical Indemnity Act 2002 112,300 (3,211) 109,089 172,426 Midwife Professional Indemnity (Commonwealth Contribution) Scheme Act 2010 1,302 - 1,302 - Payments to CAC Act Bodies Private Health Insurance Act 2007 - Risk Equalisation Trust Fund 360,000 - 360,000 377,069 Private Health Insurance Act 2007 - Council Administration Levy 6,226 - 6,226 5,366 42,467,48 43,118,48 Total special appropriations 3 651,002 5 42,776,987

Table 1.1: Department of Health and Ageing Resource Statement (cont.)

Estimate as Proposed Total Total at budget additional estimate available estimates at AEs appropriation 2012-13 2012-13 2012-13 2011-12 $'000 $'000 $'000 $'000 Administered resources (cont.) Administered special accounts6 Opening balance2 8,228 - 8,228 13,811 Appropriation receipts 4,591 1,102 5,693 4,595 Non-appropriation receipts to special accounts 725,478 (2,047) 723,431 1,244,783 Total special accounts 738,297 (945) 737,352 1,263,189 50,512,73 51,132,53 Total administered resourcing 2 619,804 6 49,843,042 Less appropriations drawn from annual or special appropriations above and credited to Special Accounts and/or CAC Act bodies through annual appropriations (405,565) (986) (406,551) (424,355) Total net administered resourcing for 50,107,16 50,725,98 Health and Ageing 7 618,818 5 49,418,687 Total net resourcing for Health and Ageing 51,190,53 51,830,41 (Administered and Departmental) 2 639,887 9 50,550,175 1The estimate of prior year amounts available constitutes opening balance at bank and appropriation receivable for the core department (excluding special accounts). 2The estimate at budget has been revised to reflect the 2011-12 Annual Report. 3Appropriation Bill (No 1 & 3) 2012-13. 4Includes an amount of $7.984m in 2012-13 for the Departmental Capital Budget (refer to Table 3.2.5 for further details). 5Appropriation Bill (No 2 & 4) 2012-13. 6Excludes Services for Other Entities and Trust Moneys Special Account as this account is not considered resourcing for the Department of Health and Ageing. For further information on special accounts see Table 3.1.1. 7The Budget 2012-13 special account estimates have been revised to exclude GST for comparative purposes. 8The proposed additional estimates for Outcome 13 includes a reduction of $29.951 million for a transfer under s32 of the FMA Act to the National Health Performance Authority. .

1.3 AGENCY MEASURES TABLE

Table 1.2 summarises new Government measures taken since the 2012-13 Budget.

Table 1.2: Agency 2012-13 Measures since Budget

Program 2012-13 2013-14 2014-15 2015-16 $'000 $'000 $'000 $'000 Outcome 1: Population Health Advertising Media Campaigns - reduction Department of Health and Ageing Administered expenses 1.3 (3,200) - - - 1.5 (1,000) - - - 4.6 (1,000) - - - Australian National Preventive Health Agency Administered expenses (13,500) - - - Total (18,700) - - - National Immunisation Program - extended listing of Gardasil® Department of Health and Ageing Administered expenses 1.5 17,678 23,545 21,302 24,906 10.5 598 541 554 568 Departmental expenses 1,100 394 218 149 Department of the Treasury Administered expenses (17,719) (17,664) (17,511) (17,541) Total 1,657 6,816 4,563 8,082 Preventive Health - investing in preventive health initiatives Department of Health and Ageing Administered expenses 1.1 - - - - Australian National Preventive Health Agency Administered expenses - - - - Total - - - - Tasmania's Health System - additional funding1 Department of Health and Ageing Administered expenses 1.1 60 420 427 60 5.2 2,500 14,252 18,672 21,670 6.1 250 1,021 1,564 2,392 10.2 - 5,896 9,738 4,263 11.1 - 3,000 4,000 4,000 12.1 787 12,784 15,690 18,194 12.2 - 808 192 - 13.3 20,310 12,764 13,274 15,192 Departmental expenses 2,220 2,365 2,616 2,289 Department of the Treasury Administered expenses 12,681 10,895 9,644 8,753 Total 38,808 64,205 75,817 76,813

Table 1.2: Agency 2012-13 Measures since Budget (cont.)

Program 2012-13 2013-14 2014-15 2015-16 $'000 $'000 $'000 $'000 Therapeutic Good Administration - blueprint reforms Department of Health and Ageing Departmental expenses 1.4 2,344 4,010 4,043 1,313 Total expenses 2,344 4,010 4,043 1,313 Department of Health and Ageing Departmental revenue 2,344 4,010 4,043 1,313 Total revenue 2,344 4,010 4,043 1,313 Outcome 2: Access to Pharmaceutical Services Life Saving Drugs Program - new and amended listings2 Department of Health and Ageing Administered expenses 2.3 (3,574) (6,706) (7,208) (7,627) Total (3,574) (6,706) (7,208) (7,627) Medicare Benefits Schedule - amending telehealth geographical eligibility Department of Health and Ageing Administered expenses 2.2 (865) (3,930) (6,299) (6,806) 3.1 (6,410) (25,117) (38,542) (40,921) Department Expenses 203 110 - - Department of Human Services Departmental expenses 1,261 (180) (282) (309) Department of Veterans Affairs Administered expenses (421) (1,434) (1,986) (2,444) Total (6,232) (30,551) (47,109) (50,480) Medicare Benefits Schedule - telehealth - new items Department of Health and Ageing Administered expenses 2.2 (3) (16) (25) (27) 3.1 (313) (1,179) (1,788) (1,902) Department Expenses 183 87 - - Department of Human Services Departmental expenses 561 58 58 58 Department of Veterans Affairs Administered expenses (19) (58) (81) (98) Total 409 (1,108) (1,836) (1,969)

Program 2012-13 2013-14 2014-15 2015-16 $'000 $'000 $'000 $'000 Pharmaceutical Benefits Scheme - new and amended listings2 Department of Health and Ageing Administered expenses 2.2 37,884 92,472 67,301 44,374 3.1 (2,008) (6,744) (13,318) (20,434) Department of Human Services Departmental expenses 399 399 357 331 Department of Veterans' Affairs Administered expenses (691) (2,892) (5,980) (8,915) Total expenses 35,584 83,235 48,360 15,356 Department of Health and Ageing Administered revenue nfp nfp nfp nfp Total revenue - - - - Pharmaceutical Benefits Scheme - price changes Department of Health and Ageing Administered expenses 2.2 2,513 2,841 2,949 3,095 Department of Veterans' Affairs Administered expenses 133 225 206 208 Total 2,646 3,066 3,155 3,303 Pharmaceutical Benefits Scheme - price reduction of high potency cholesterol - lowering medicines3 Department of Health and Ageing Administered expenses 2.2 - - - - Departmental expenses - - - - Department of Veterans' Affairs Administered expenses - - - - Total - - - - Outcome 3: Access to Medicare Services Dental Health Reform - Child Dental Benefits Schedule Department of Health and Ageing Administered expenses 3.1 - 189,718 603,117 635,698 Departmental expenses 906 1,575 1,559 1,201 Department of Human Services Departmental expenses 469 12,069 15,482 16,321 Departmental capital 10 1,428 204 46 Total 1,385 204,790 620,362 653,266

Program 2012-13 2013-14 2014-15 2015-16 $'000 $'000 $'000 $'000 Dental Health Reform - Medicare Teen Dental Plan - redirection of funding Department of Health and Ageing - (35,925) (97,741) (106,539 Administered expenses 3.1 ) Department of Human Services Departmental expenses - (1,245) (5,947) (6,038) Departmental capital - 20 - - (103,688 (112,577 Total - (37,150) ) ) Medicare Benefits Schedule - amending telehealth geographical eligibility Department of Health and Ageing Administered expenses 2.2 (865) (3,930) (6,299) (6,806) 3.1 (6,410) (25,117) (38,542) (40,921) Department Expenses 203 110 - - Department of Human Services Departmental expenses 1,261 (180) (282) (309) Department of Veterans Affairs Administered expenses (421) (1,434) (1,986) (2,444) Total (6,232) (30,551) (47,109) (50,480) Medicare Benefits Schedule - new and amended listings Department of Health and Ageing Administered expenses 3.1 (2,291) (2,347) (2,750) (3,183) Department of Human Services Departmental expenses 168 113 (27) (32) Department of Veterans' Affairs Administered expenses (84) (106) (120) (133) Total (2,207) (2,340) (2,897) (3,348) Medicare Benefits Schedule - telehealth - new items Department of Health and Ageing Administered expenses 2.2 (3) (16) (25) (27) 3.1 (313) (1,179) (1,788) (1,902) Department Expenses 183 87 - - Department of Human Services Departmental expenses 561 58 58 58 Department of Veterans Affairs Administered expenses (19) (58) (81) (98) Total 409 (1,108) (1,836) (1,969)

Program 2012-13 2013-14 2014-15 2015-16 $'000 $'000 $'000 $'000 Pharmaceutical Benefits Scheme - new and amended listings2 Department of Health and Ageing Administered expenses 2.2 37,884 92,472 67,301 44,374 3.1 (2,008) (6,744) (13,318) (20,434) Department of Human Services Departmental expenses 399 399 357 331 Department of Veterans' Affairs Administered expenses (691) (2,892) (5,980) (8,915) Total expenses 35,584 83,235 48,360 15,356 Department of Health and Ageing Administered revenue nfp nfp nfp nfp Total revenue - - - - Outcome 4: Aged Care and Population Ageing Advertising Media Campaigns - reduction Department of Health and Ageing Administered expenses 1.3 (3,200) - - - 1.5 (1,000) - - - 4.6 (1,000) - - - Australian National Preventive Health Agency Administered expenses (13,500) - - - Total (18,700) - - - Outcome 5: Primary Care Tasmania's Health System - additional funding1 Department of Health and Ageing Administered expenses 1.1 60 420 427 60 5.2 2,500 14,252 18,672 21,670 6.1 250 1,021 1,564 2,392 10.2 - 5,896 9,738 4,263 11.1 - 3,000 4,000 4,000 12.1 787 12,784 15,690 18,194 12.2 - 808 192 - 13.3 20,310 12,764 13,274 15,192 Departmental expenses 2,220 2,365 2,616 2,289 Department of the Treasury Administered expenses 12,681 10,895 9,644 8,753 Total 38,808 64,205 75,817 76,813 Video Conferencing for the After Hours GP Helpline - staged implementation Department of Health and Ageing Administered expenses 5.2 (20,000) - - - Total (20,000) - - -

Program 2012-13 2013-14 2014-15 2015-16 $'000 $'000 $'000 $'000 Outcome 6: Rural Health Tasmania's Health System - additional funding1 Department of Health and Ageing Administered expenses 1.1 60 420 427 60 5.2 2,500 14,252 18,672 21,670 6.1 250 1,021 1,564 2,392 10.2 - 5,896 9,738 4,263 11.1 - 3,000 4,000 4,000 12.1 787 12,784 15,690 18,194 12.2 - 808 192 - 13.3 20,310 12,764 13,274 15,192 Departmental expenses 2,220 2,365 2,616 2,289 Department of the Treasury Administered expenses 12,681 10,895 9,644 8,753 Total 38,808 64,205 75,817 76,813 Outcome 9: Private Health Insurance Private Health Insurance Rebate - indexing the Government's contribution Department of Health and Ageing 2,500 (37,004) (218,996 (451,744 Administered expenses 9.1 ) ) Departmental expenses 523 518 57 57 Department of Human Services Departmental expenses 165 291 5 - Australian Taxation Office Administered expenses 2,160 1,575 98 99 (218,836 (451,588 Total 5,348 (34,620) ) ) Private Health Insurance Rebate - removal of rebate on lifetime health cover loading Department of Health and Ageing - (124,354 (133,929 (140,626 Administered expenses 9.1 ) ) ) Departmental expenses 273 179 23 - Department of Human Services Departmental expenses 1,321 1,238 683 685 Departmental capital 2,199 756 2 1 Australian Taxation Office Administered expenses 1,209 1,142 2,843 99 (121,039 (130,378 (139,841 Total 5,002 ) ) )

Program 2012-13 2013-14 2014-15 2015-16 $'000 $'000 $'000 $'000 Outcome 10: Health System Capacity and Quality Health and Hospital Fund - Queensland Regional Acute/Subacute/Extended Inpatient Mental Health Services Project - cancellation Department of Health and Ageing Administered expenses 10.6 - - - - Treasury Administered expenses (1,931) (2,823) (5,406) (9,981) Total (1,931) (2,823) (5,406) (9,981) National Immunisation Program - extended listing of Gardasil® Department of Health and Ageing Administered expenses 1.5 17,678 23,545 21,302 24,906 10.5 598 541 554 568 Departmental expenses 1,100 394 218 149 Department of the Treasury Administered expenses (17,719) (17,664) (17,511) (17,541) Total 1,657 6,816 4,563 8,082 Springfield Cancer Care Centre Department of Health and Ageing Administered expenses 10.1 926 10,438 10,078 - Total 926 10,438 10,078 - Tasmania's Health System - additional funding1 Department of Health and Ageing Administered expenses 1.1 60 420 427 60 5.2 2,500 14,252 18,672 21,670 6.1 250 1,021 1,564 2,392 10.2 - 5,896 9,738 4,263 11.1 - 3,000 4,000 4,000 12.1 787 12,784 15,690 18,194 12.2 - 808 192 - 13.3 20,310 12,764 13,274 15,192 Departmental expenses 2,220 2,365 2,616 2,289 Department of the Treasury Administered expenses 12,681 10,895 9,644 8,753 Total 38,808 64,205 75,817 76,813

Program 2012-13 2013-14 2014-15 2015-16 $'000 $'000 $'000 $'000 Outcome 11: Mental Health Tasmania's Health System - additional funding1 Department of Health and Ageing Administered expenses 1.1 60 420 427 60 5.2 2,500 14,252 18,672 21,670 6.1 250 1,021 1,564 2,392 10.2 - 5,896 9,738 4,263 11.1 - 3,000 4,000 4,000 12.1 787 12,784 15,690 18,194 12.2 - 808 192 - 13.3 20,310 12,764 13,274 15,192 Departmental expenses 2,220 2,365 2,616 2,289 Department of the Treasury Administered expenses 12,681 10,895 9,644 8,753 Total 38,808 64,205 75,817 76,813 Outcome 12: Health Workforce Capacity Tasmania's Health System - additional funding1 Department of Health and Ageing Administered expenses 1.1 60 420 427 60 5.2 2,500 14,252 18,672 21,670 6.1 250 1,021 1,564 2,392 10.2 - 5,896 9,738 4,263 11.1 - 3,000 4,000 4,000 12.1 787 12,784 15,690 18,194 12.2 - 808 192 - 13.3 20,310 12,764 13,274 15,192 Departmental expenses 2,220 2,365 2,616 2,289 Department of the Treasury Administered expenses 12,681 10,895 9,644 8,753 Total 38,808 64,205 75,817 76,813

Program 2012-13 2013-14 2014-15 2015-16 $'000 $'000 $'000 $'000 Outcome 13: Acute Care Dental Health Reform - flexible grants program Department of Health and Ageing Administered expenses 13.3 - - 50,000 55,000 Departmental expenses - - 499 491 Total - - 50,499 55,491 Dental Health Reform - National Partnership Agreement for Adult Public Dental Services Department of Health and Ageing Departmental expenses 13.3 - - 788 771 Treasury Administered expenses - - 200,000 295,000 Total - - 200,788 295,771 Medical Indemnity Insurance - reduction in subsidies under the Premium Support Scheme4 Department of Health and Ageing Administered expenses 13.2 - - - - Total - - - - Tasmania's Health System - additional funding1 Department of Health and Ageing Administered expenses 1.1 60 420 427 60 5.2 2,500 14,252 18,672 21,670 6.1 250 1,021 1,564 2,392 10.2 - 5,896 9,738 4,263 11.1 - 3,000 4,000 4,000 12.1 787 12,784 15,690 18,194 12.2 - 808 192 - 13.3 20,310 12,764 13,274 15,192 Departmental expenses 2,220 2,365 2,616 2,289 Department of the Treasury Administered expenses 12,681 10,895 9,644 8,753 Total 38,808 64,205 75,817 76,813

Program 2012-13 2013-14 2014-15 2015-16 $'000 $'000 $'000 $'000 Whole of Government Measures5 Targeted savings - public service efficiencies3 Departmental expenses Department of Health and Ageing (3,691) (3,855) (3,855) (3,855) Australian Institute of Health & Welfare (53) (47) (47) (47) Australian National Preventive Health Agency (25) (25) (25) (25) Australian Organ and Tissue Donation Authority (20) (18) (18) (18) Australian Radiation Protection and Nuclear Safety Agency (59) (54) (54) (54) Cancer Australia (43) (39) (39) (39) Food Standards Australia New Zealand (63) (55) (55) (55) Independent Hospital Pricing Authority (48) (42) (42) (42) National Blood Authority (23) (20) (20) (20) National Health and Medical Research Council (533) (617) (617) (617) Private Health Insurance Ombudsman (7) (6) (6) (6) Professional Services Review (20) (17) (17) (17) Total (4,585) (4,795) (4,795) (4,795) Whole of Government Savings from Paused Grants Program Administered expenses Department of Health and Ageing 11.1 (5,000) - - - Total (5,000) - - - Other Portfolio Measures5 Better Start for Children with Disability - extension of eligibility (Department of Families, Housing, Community Services and Indigenous Affairs) Department of Health and Ageing Administered expenses 3.1 175 260 173 206 Total 175 260 173 206 Fire Service Levy - reduction6 (Department of Finance and Deregulation) Departmental expenses Department of Health and Ageing (376) (392) (410) (410) Australian Radiation Protection and Nuclear Safety Agency (29) (30) (32) (32) Total (405) (422) (442) (442)

1Numbers for this measure have been revised since the 2012-13 MYEFO. The balance of the $325 million package over four years is held in the Contingency Reserve pending classification as either Commonwealth Own Purpose Expenditure or National Partnership funding. 2Numbers for this measure have been revised since the 2012-13 MYEFO. 3Decision taken but not yet announced in the 2012-13 Budget. 4Decision taken but not yet announced in the 2011-12 Budget. 5The Department is not the lead agency. Health and Ageing portfolio impacts only are shown. 6Measure announced in the 2012-13 Budget but not previously reported in Portfolio Budget Statements.

1.4 ADDITIONAL ESTIMATES AND VARIATIONS

The following tables detail the changes to the resourcing for the Department of Health and Ageing at Additional Estimates, by outcome. Table 1.3 details the Additional Estimates and variations resulting from new measures since the 2012-13 Budget in Appropriation Bills No. 3 and No. 4. Table 1.4 details Additional Estimates or variations through other factors, such as parameter adjustments.

Table 1.3: Additional Estimates and Variations to Outcomes from Measures since 2012-13 Budget For details on changes to the resourcing for the Department of Health and Ageing at Additional Estimates from measures please refer to each outcome chapter in Section 2.

Table 1.4: Additional Estimates and Variations to Outcomes from other Variations For details on changes to the resourcing for the Department of Health and Ageing at Additional Estimates from other variations please refer to each outcome chapter in Section 2.

1.5 Breakdown of Additional Estimates by Appropriation Bill

The following tables detail the Additional Estimates sought for the Department of Health and Ageing through Appropriation Bills No. 3 and No. 4. Table 1.5: Appropriation Bill (No. 3) 2012-13

2011-12 2012-13 2012-13 Additional Reduced Available1 Budget Revised estimates estimates $'000 $'000 $'000 $'000 $'000 Administered Items Outcome 1 Population Health 324,120 364,516 366,036 1,520 - Outcome 2 Access to Pharmaceutical Services 617,667 660,061 675,571 15,510 - Outcome 3 Access to Medical Services 107,874 115,171 115,171 - - Outcome 4 Aged Care and Population 2,027,19 2,000,68 546,406 - 26,509 Ageing 0 1 Outcome 5 Primary Care 854,230 866,574 849,074 - 17,500 Outcome 6 Rural Health 100,058 87,230 87,480 250 - Outcome 7 Hearing Services 378,048 404,179 404,257 78 - Outcome 8 Indigenous Health 684,911 705,659 705,659 - - Outcome 9 Private Health 3,655 2,591 5,091 2,500 - Outcome 10 Health System Capacity and Quality 530,029 146,375 147,899 1,524 - Outcome 11 Mental Health 255,101 385,737 386,596 859 - Outcome 12 1,320,38 1,321,16 Health Workforce Capacity 1,103,405 787 - 1 8 Outcome 132 Acute Care 88,103 130,123 120,482 20,310 29,951 Outcome 14 Biosecurity and Emergency Response 25,679 21,398 21,883 485 - 7,237,18 7,207,04 Total administered items 5,619,286 43,823 73,960 5 8

Table 1.5: Appropriation Bill (No. 3) 2012-13 (cont.)

2011-12 2012-13 2012-13 Additional Reduced Available1 Budget Revised estimates estimates $'000 $'000 $'000 $'000 $'000 Departmental Programs Outcome 13 Population Health 78,582 73,267 78,989 5,722 - Outcome 2 Access to Pharmaceutical Services 46,481 43,211 44,285 1,074 Outcome 3 Access to Medical Services 37,963 38,204 39,865 1,661 - Outcome 4 Aged Care and Population Ageing 205,943 216,016 216,343 327 - Outcome 5 Primary Care 29,818 28,403 29,114 711 - Outcome 6 Rural Health 5,227 10,997 11,073 76 - Outcome 7 Hearing Services 11,550 11,618 11,618 - - Outcome 8 Indigenous Health 55,693 51,838 51,838 - - Outcome 9 Private Health 12,172 5,488 6,284 796 - Outcome 10 Health System Capacity and Quality 25,651 29,045 29,045 - - Outcome 11 Mental Health 17,776 16,883 16,954 71 - Outcome 12 Health Workforce Capacity 26,867 20,847 21,024 177 - Outcome 13 Acute Care 59,916 51,151 52,495 1,344 - Outcome 14 Biosecurity and Emergency Response 23,629 22,219 22,219 - - Total departmental appropriation 637,268 619,187 631,146 11,959 - Total Appropriation Administered and Departmental Bill No. 3 7,856,37 7,838,19 6,256,554 2 4 55,782 73,960 12011-12 available appropriation is equal to: Budget and Additional Estimates Appropriations + AFM – Savings, Rephasings and other reductions +/- Section 32. 2The reduced estimate of $29.951m under Outcome 13 (administered) represents a transfer under section 32 of the FMA Act to the National Health Performance Authority. 3The additional estimates ($5.722m) includes cross outcome variations of $3.824m not reflected in Tables 2.1.1. Refer to Table 2 on page 31.

Table 1.6: Appropriation Bill (No. 4) 2012-13

2011-12 2012-13 2012-13 Additional Reduced Available1 Budget Revised estimates estimates $'000 $'000 $'000 $'000 $'000 Payments to States, ACT, NT and Local Government Outcome 1 Population Health 25,793 15,226 15,226 - - Total 25,793 15,226 15,226 - -

Non-operating Equity injections 24,613 52,510 52,510 - - Administered assets and liabilities 120,462 19,793 19,793 - - Total non-operating 145,075 72,303 72,303 - - Total Appropriation Bill No. 4 170,868 87,529 87,529 - - 12011-12 available appropriation is included to allow a comparison of this year's appropriation with what was made available for use in the previous year. Available appropriation is the amount available to be drawn down, and is equal to: budget Appropriation + Additional Estimates Appropriation + AFM – Savings - Rephasings - Other Reductions +/- Section 32.

Section 2: Revisions to Agency Resources and Planned Performance

2.1 RESOURCES AND PERFORMANCE INFORMATION

The department’s activities, resourcing and performance reporting are organised under a structure of 14 outcomes. These outcomes represent the results or impacts on the community that the Government wishes to achieve. There have been no changes to the department’s outcome statements since the 2012-13 Health and Ageing Portfolio Budget Statements (PBS).

Revisions to performance information since the 2012-13 Budget are detailed in the Outcome chapters in this section. Changes have been made to the performance information for Outcome 2.

CROSS OUTCOME VARIATIONS

The table below shows variations to the departmental estimates not notionally allocated to an outcome.

Table 2: Cross Outcome Variations

2012-13 2013-14 2014-15 2015-16 $'000 $'000 $'000 $'000 Cross-outcome departmental variations

Changes in departmental appropriations Appropriation Bill No. 3 Measure - Targeted Savings - public service efficiencies (3,691) (3,855) (3,855) (3,855) Measure - Fire Services Levy - reduction (376) (392) (410) (410) Department of Foreign Affairs and Trade devolution of utilities and cleaning funding for overseas leasehold - 2 2 2

Price parameter adjustments1 - operational - (2,913) (3,943) (4,526) Price parameter adjustments1 - DCB2 - (18) (59) (71) Transfer from capital funding for the Strategic Review Grants Management System 7,891 3,493 - - 3,824 (3,683) (8,265) (8,860) 1See explanation in glossary. 2Departmental Capital Budget (DCB).

32 Section 2 – Outcome 1

Outcome 1 POPULATION HEALTH A reduction in the incidence of preventable mortality and morbidity in Australia, including through regulation and national initiatives that support healthy lifestyles and disease prevention.

Table 2.1.1: Resource Summary - Outcome 1

Budget Revised Additional Reduced

2012-13 2012-13 estimates estimates

$'000 $'000 $'000 $'000

Program 1.1: Prevention, Early Detection and Service

Improvement1

Administered expenses

Ordinary annual services (Bill 1/3) 92,317 92,377 60 -

Departmental expenses

Departmental appropriation2 11,919 12,012 93 -

Expenses not requiring appropriation in

the budget year3 474 474 - -

Total for Program 1.1 104,710 104,863 153 -

Program 1.2: Communicable Disease Control

Ordinary annual services (Bill 1/3) 10,653 10,653 - -

Total for Program 1.2 13,689 13,696 7 -

Program 1.3: Drug Strategy1

Ordinary annual services (Bill 1/3) 219,761 216,561 - 3,200

Total for Program 1.3 247,702 244,776 274 3,200

Table 2.1.1: Resource Summary – Outcome 1 (cont.)

Budget Revised Additional Reduced 2012-13 2012-13 estimates estimates $'000 $'000 $'000 $'000 Program 1.4: Regulatory Policy

Administered expenses Ordinary annual services (Bill 1/3) 5,177 5,177 - - Departmental expenses Departmental appropriation2 18,250 18,810 560 - to special accounts (10,819) (11,854) - 1,035 Expenses not requiring appropriation in the budget year3 190 190 - - Special accounts4 - OGTR Special Account5 7,993 7,993 - - NICNAS Special Account6 11,521 14,737 3,216 - TGA Special Account7 123,586 129,634 6,048 - Expense adjustment8 (4,844) (2,526) 2,318 - Total for Program 1.4 151,054 162,161 12,142 1,035 Program 1.5: Immunisation1

Administered expenses Ordinary annual services (Bill 1/3) 20,599 25,259 4,660 - to Australian Childhood Immunisation Register Special Account (4,591) (5,693) - 1,102 Special appropriations National Health Act 1953 - essential vaccines 51,102 72,873 21,771 - Special accounts Australian Childhood Immunisation Register 8,317 9,303 986 - Departmental appropriation2 6,853 7,970 1,117 - Expenses not requiring appropriation in the budget year3 226 226 - - Total for Program 1.5 82,506 109,938 28,534 1,102 Program 1.6: Public Health1

Administered expenses Ordinary annual services (Bill 1/3) 16,009 16,009 - - Ordinary annual services (Bill 2/4) 15,226 15,226 - - Departmental expenses Departmental appropriation2 7,433 7,456 23 - Expenses not requiring appropriation in the budget year3 295 295 - - Total for Program 1.6 38,963 38,986 23 -

Budget Revised Additional Reduced 2012-13 2012-13 estimates estimates $'000 $'000 $'000 $'000 Outcome 1 totals by appropriation type

Administered expenses Ordinary annual services (Bill 1/3) 364,516 366,036 1,520 - to Special Accounts (4,591) (5,693) - 1,102 Ordinary annual services (Bill 2/4) 15,226 15,226 - - Special appropriations 51,102 72,873 21,771 - Special accounts 8,317 9,303 986 - Departmental expenses Departmental appropriation2,9 74,342 76,416 2,074 - to special accounts (10,819) (11,854) - 1,035 Expenses not requiring appropriation in the budget year3 2,275 2,275 - - Special accounts 138,256 149,838 11,582 - Total for Outcome 1 638,624 674,420 37,933 2,137 1Budget estimates for this program exclude National Partnership funding paid to state and territory governments by Treasury as part of the Federal Financial Relations (FFR) Framework. National Partnerships are listed in Section 2 of the 2012-13 Health and Ageing Portfolio Budget Statements (PBS) under each program. Program 1.1 also includes the BreastScreen Australia Radiography Workforce National Partnership not included in the 2012-13 PBS. For updated estimates relating to National Partnerships refer to the 2012-13 Mid-Year Economic and Fiscal Outlook. 2Departmental appropriation combines Ordinary annual services (Appropriation Bill No 1) and Revenue from independent sources (s31). 3Expenses not requiring appropriation in the Budget year comprise depreciation and amortisation expenses. 4The Budget 2012-13 special account estimates have been revised to exclude GST for comparative purposes. 5Office of the Gene Technology Regulator. 6National Industrial Chemicals Notification and Assessment Scheme. 7Therapeutic Goods Administration. 8Special accounts are reported on a cash basis. This adjustment reflects the accrual difference between expense and cash. 9The notional allocation of departmental Appropriation Bill No. 3 to Outcomes (Refer Table 1.5 on page 28) includes an increase of $3.824 million against Outcome 1 not included in the table above.

Budget Revised 2012-13 2012-13 Average staffing level (number) 1,129 1,155

Table 2.1.2: Variations Table - Outcome 11

2012-13 2013-14 2014-15 2015-16 $'000 $'000 $'000 $'000 Program 1.1: Prevention, Early Detection and Service Improvement Changes to administered appropriations Appropriation Bill No.3 Measure - Tasmania's Health System - additional funding 60 420 427 60 Price parameter adjustments2 - (211) (276) (412) Changes to departmental appropriations Appropriation Bill No.3 Measure - Tasmania's Health System - additional funding 56 56 57 57 116 265 208 (295) Program 1.2: Communicable Disease Control Changes to administered appropriations Appropriation Bill No.3 Price parameter adjustments2 - (22) (33) (46) - (22) (33) (46) Program 1.3: Drug Strategy Changes to administered appropriations Appropriation Bill No.3 Measure - Advertising Media Campaigns - reduction (3,200) - - - Price parameter adjustments2 - (551) (924) (1,009) Changes to departmental appropriations Appropriation Bill No.3 Drug Strategy - funding adjustment 197 - - - (3,003) (551) (924) (1,009) Program 1.4: Regulatory Policy Changes to administered appropriations Appropriation Bill No. 3 Price parameter adjustments2 - (3) (3) (3) Changes to departmental appropriations Appropriation Bill No.3 Price parameter adjustments2 - OGTR - (39) (55) (63) Regulatory Policy - funding adjustment 545 - - - 545 (42) (58) (66)

Table 2.1.2: Variations Table – Outcome 11 (cont.)

2012-13 2013-14 2014-15 2015-16 $'000 $'000 $'000 $'000 Program 1.5 Immunisation Changes to administered appropriations Appropriation Bill No. 3 Measure - National Immunisation Program - extended listing of Gardasil® 5,660 1,961 1,157 956 Measure - Advertising Media Campaigns - reduction (1,000) - - - Price parameter adjustments2 - (37) (57) (76) Changes to departmental appropriations Appropriation Bill No.3 Measure - National Immunisation Program - extended listing of Gardasil® 1,100 394 218 149 5,760 2,318 1,318 1,029

Program 1.6: Public Health Changes to administered appropriations Appropriation Bill No. 3 Preventative Health - adjustment of (28,210 (38,210 (39,460 unallocated funding - ) ) ) Price parameter adjustments2 - (15) (24) (31) - (28,225) (38,234) (39,491)

1The notional allocation of departmental Appropriation Bill No. 3 to Outcomes in Table 1.5 (page 28) includes an increase of $3.824 million not included in the variation table above. Refer Table 2 on page 31 for a breakdown of the $3.824 million. 2See explanation in glossary.

Table 2.1.3: Program Expenses Table - Outcome 1

2011-12 2012-13 2013-14 2014-15 2015-16 Actual Revised Forward Forward Forward budget year 1 year 2 year 3 $'000 $'000 $'000 $'000 $'000

Program expenses 1.1: Prevention, Early Detection and Service Improvement1 Annual administered expenses Ordinary annual services 87,618 92,377 107,418 93,882 104,702 Program support 15635 12,486 12,072 12,029 12,139 Total program expenses 103,253 104,863 119,490 105,911 116,841

Program expenses 1.2: Communicable Disease Control Annual administered expenses Ordinary annual services 10,480 10,653 11,071 11,271 11,474 Program support 3059 3,043 3,051 3,040 3,062 Total program expenses 13,539 13,696 14,122 14,311 14,536

Program expenses 1.3: Drug Strategy1 Annual administered expenses Ordinary annual services 193,990 216,561 208,800 215,027 219,191 Program support 31214 28,215 25,834 25,627 25,857 Total program expenses 225,204 244,776 234,634 240,654 245,048

Program expenses 1.4: Regulatory Policy Annual administered expenses Ordinary annual services 60 5,177 1,401 879 854 Program support 5759 7,146 4,161 3,893 3,939 Departmental Special Accounts2 OGTR Special Account3 7,735 7,993 8,024 8,074 8,149 NICNAS Special Account4 8,725 14,737 14,583 13,267 13,629 TGA Special Account5 109,106 129,634 127,569 132,389 139,304 Expense adjustment6 10,917 (2,526) 2,876 2,340 (3,531) Total program expenses 142,302 162,161 158,614 160,842 162,344

Table 2.1.3 Program Expenses – Outcome 1 (cont.)

Program expenses 1.5: Immunisation1 Annual administered expenses Ordinary annual services 13,996 25,259 20,534 20,155 20,296 to Australian Childhood Immunisation Register Special Account (4,595) (5,693) (5,747) (5,802) (5,858) Special appropriations National Health Act 1953 - essential vaccines 37,010 72,873 100,735 101,736 104,963 Special Account Australian Childhood Immunisation Register Special Account 9,176 9,303 9,388 9,475 9,563 Program support 7203 8,196 7,217 6,990 6,978 Total program expenses 62,790 109,938 132,127 132,554 135,942

Program expenses 1.6: Public Health1 Annual administered expenses Ordinary annual services 19,582 16,009 18,320 8,563 7,974 Other services 25,793 15,226 11,058 - - Program support 9756 7,751 7,774 7,741 7,809 Total program expenses 55,131 38,986 37,152 16,304 15,783 1Budget estimates for this program exclude National Partnership funding paid to state and territory governments by the Treasury as part of the Federal Financial Relations (FFR) Framework. National Partnerships are listed in Section 2 of the 2012-13 Health and Ageing Portfolio Budget Statements (PBS) under each program. Program 1.1 also includes the BreastScreen Australia Radiography Workforce National Partnership not included in the 2012-13 PBS. For updated estimates relating to National Partnerships refer to the 2012-13 Mid-Year Economic and Fiscal Outlook. 2The 2011-12 Actual and 2012-13 Revised budget special account estimates have been revised to exclude GST for comparative purposes. 3Office of the Gene Technology Regulator Special Account. 4National Industrial Chemicals Notification and Assessment Scheme Special Account. 5Therapeutic Goods Administration Special Account. 6Special accounts are reported on a cash and GST exclusive basis. This adjustment reflects the accrual difference between expense and cash.

Program key performance indicators There have been no changes to the performance information for Outcome 1 since the 2012-13 Health and Ageing Portfolio Budget Statements (PBS). Refer to Page 48 of the PBS for current performance information.

Outcome 2 ACCESS TO PHARMACEUTICAL SERVICES Access to cost-effective medicines, including through the Pharmaceutical Benefits Scheme and related subsidies, and assistance for medication management through industry partnerships.

Budget Revised Additional Reduced 2012-13 2012-13 estimates estimates $'000 $'000 $'000 $'000

Program 2.1: Community Pharmacy & Pharmaceutical Awareness Administered expenses Ordinary annual services (Bill 1/3) 314,970 333,854 18,884 - Departmental expenses Departmental appropriation1 11,169 11,194 25 - Expenses not requiring appropriation in the budget year2 325 325 - - Total for Program 2.1 326,464 345,373 18,909 -

Program 2.2: Pharmaceuticals and Pharmaceutical Services Administered expenses Ordinary annual services (Bill 1/3) 189,929 190,129 200 - Special appropriations National Health Act 1953 - pharmaceutical benefits 9,734,204 9,614,456 - 119,748 Departmental expenses Departmental appropriation1 29,151 30,290 1,139 - Expenses not requiring appropriation in the budget year2 3,297 3,297 - - Total for Program 2.2 9,956,581 9,838,172 1,339 119,748

Program 2.3: Targeted Assistance - Pharmaceuticals Administered expenses Ordinary annual services (Bill 1/3) 154,417 150,843 - 3,574 Departmental expenses Departmental appropriation1 2,043 2,048 5 - Expenses not requiring appropriation in the budget year2 59 59 - - Total for Program 2.3 156,519 152,950 5 3,574

Budget Revised Additional Reduced 2012-13 2012-13 estimates estimates $'000 $'000 $'000 $'000 Program 2.4: Targeted Assistance - Aids and

Appliances Administered expenses Ordinary annual services (Bill 1/3) 745 745 - - Special Appropriations National Health Act 1953 - aids and appliances 284,682 284,682 - - Departmental expenses Departmental appropriation1 2,591 2,596 5 - Expenses not requiring appropriation in the budget year2 69 69 - - Total for Program 2.4 288,087 288,092 5 - Outcome 2 totals by appropriation type

Administered expenses Ordinary annual services (Bill 1/3) 660,061 675,571 15,510 - 10,018,88 Special appropriations 9,899,138 - 119,748 6 Departmental expenses Departmental appropriation1 44,954 46,128 1,174 - Expenses not requiring appropriation in the budget year2 3,750 3,750 - - 10,727,65 10,624,58 Total for Outcome 2 16,684 119,748 1 7 1Departmental appropriation combines Ordinary annual services (Appropriation Bill No 1) and Revenue from independent sources (s31). 2Expenses not requiring appropriation in the Budget year is made up of depreciation expense, amortisation expense, makegood expense and audit fees.

Budget Revised 2012-13 2012-13 Average staffing level (number) 212 216

2012-13 2013-14 2014-15 2015-16 $'000 $'000 $'000 $'000 Program 2.1: Community Pharmacy & Pharmaceutical Awareness Changes to administered appropriations Appropriation Bill No.3 Pharmaceutical Benefits Scheme - Generic Dispensing Payment - variation to reflect expected costs 18,634 20,066 27,098 27,098 Review of Alzheimer Disease Medications - funding adjustment 250 - - - Price parameter adjustments1 - (3) (3) (5) 18,884 20,063 27,095 27,093 Program 2.2: Pharmaceuticals and Pharmaceutical Services Changes to administered appropriations Appropriation Bill No.3 Pharmaceutical Benefits Scheme - funding to implement legislative changes 200 - - - Changes to departmental appropriations Appropriation Bill No.3 Measure - Pharmaceutical Benefits Scheme - price reduction of high potency cholesterol - lowering medicines2 287 - - - Pharmaceutical Benefits Scheme - funding to implement legislative changes 432 - - - Review of Alzheimer Disease Medications - funding adjustment 355 - - - 1,274 - - - Program 2.3: Targeted Assistance - Pharmaceuticals Changes to administered appropriations Appropriation Bill No.3 Measure - Life Saving Drugs Program - new and amended listings (3,574) (6,706) (7,208) (7,627) Price parameter adjustments1 - (204) (313) (420) (3,574) (6,910) (7,521) (8,047)

1See explanation in glossary. 2Decision taken but not announced in the 2012-13 Budget.

Program expenses 2.1: Community Pharmacy and Pharmaceutical Awareness Annual administered expenses Ordinary annual services 303,752 333,854 367,131 400,900 400,920 Program support 13790 11,519 11,289 11,252 11,327 Total program expenses 317,542 345,373 378,420 412,152 412,247

Program expenses 2.2: Pharmaceuticals and Pharmaceutical Services Annual administered expenses Ordinary annual services 186,049 190,129 192,806 196,468 200,199 Special appropriations National Health Act 1953 10,268,86 10,995,47 11,740,94 - pharmaceutical benefits 9,056,737 9,614,456 2 4 4 Program support 36131 33,587 32,122 32,021 32,216 10,493,79 11,223,96 11,973,35 Total program expenses 9,278,917 9,838,172 0 3 9

Program expenses 2.3: Targeted Assistance - Pharmaceuticals Annual administered expenses Ordinary annual services 127,938 150,843 153,153 158,329 159,830 Program support 2522 2,107 2,113 2,107 2,121 Total program expenses 130,460 152,950 155,266 160,436 161,951

Program expenses 2.4: Targeted Assistance - Aids and Appliances Annual administered expenses Ordinary annual services 802 745 681 596 596 Special appropriations National Health Act 1953 - aids and appliances 262,811 284,682 305,292 327,040 345,659 Program support 2914 2,665 2,672 2,486 2,503 Total program expenses 266,527 288,092 308,645 330,122 348,758

Program key performance indicators The table below outlines changes to performance information within Outcome 2 since the 2012-13 Health and Ageing Portfolio Budget Statements (PBS). Revisions to performance information since the PBS have been highlighted below. Further performance information for Outcome 2 can be found at Page 83 of the PBS.

Program 2.2: Key Performance Indicators Table 2.9: Quantitative Key Performance Indicators for Program 2.2

2013-14 2014-15 2011-12 2012-13 2015-16 Quantitative Forward Forward Revised Budget Forward Indicators Budget Target Year 3 Year 1 Year 2

List cost-effective, innovative, clinically effective medicines on the PBS

Number of prescriptions 193m 199m 205m 211m 218m subsidised through the PBS2 Revenue received from cost recovery of $14.1m $14.1m $14.1m $14.1m $14.1m the PBS listing process

Increase the sustainability of the PBS

Estimated savings to Government from $62.0m $121.0m $296.0m $578.0m $855.0m the price disclosure program per annum3

2 Footnote deleted.

3 Footnote deleted.

Program 2.3: Deliverables4 Table 2.11: Qualitative Deliverables for Program 2.3

Qualitative Deliverables 2012-13 Reference Point or Target

Improve access to new and existing medicines for patients with life threatening conditions

Review program guidelines to ensure Program guidelines reviewed within they remain current and relevant agreed timeframes

Table 2.12: Quantitative Deliverables for Program 2.3

2012-13 2013-14 2014-15 2011-12 2015-16 Quantitative Budget Forward Forward Revised Forward Deliverables Budget Year 3 Target Year 1 Year 2

Number of patients assisted through the 231 230 245 260 275 Life Saving Drugs Program 5

4 In 2012-13, all deliverables and key performance indicators have been reviewed and updated to ensure targeted performance reporting. 5 The LSDP is a demand driven program. The 2012-13 budget target and forward estimates have been revised based on current patient numbers as of 1 December 2012.

Program 2.3: Key Performance Indicators Table 2.13: Qualitative Key Performance Indicators for Program 2.3

Qualitative Indicator 2012-13 Reference Point or Target

Eligible patients have timely access to Patient applications are processed the Life Saving Drugs Program within 30 calendar days of receipt

Outcome 3 ACCESS TO MEDICAL SERVICES Access to cost-effective medical, practice nursing and allied health services, including through Medicare subsidies for clinically relevant services.

Budget Revised Additional Reduced 2012-13 2012-13 estimates estimates $'000 $'000 $'000 $'000 Program 3.1: Medicare Services

Administered expenses Ordinary annual services (Bill 1/3) 4,170 4,170 - - Special appropriations Dental Benefits Act 2008 83,087 83,087 - - Health Insurance Act 1973 - 17,762,80 18,109,85 medical benefits 347,053 - 5 8 Departmental expenses Departmental appropriation1 30,963 32,702 1,739 - Expenses not requiring appropriation in the budget year2 1,035 1,035 - - 17,882,06 18,230,85 Total for Program 3.1 348,792 - 0 2 Program 3.2: Targeted Assistance - Medical

Administered expenses Ordinary annual services (Bill 1/3) 31,292 31,292 - - Departmental expenses Departmental appropriation1 886 888 2 - Expenses not requiring appropriation in the budget year2 31 31 - - Total for Program 3.2 32,209 32,211 2 - Program 3.3: Diagnostic Imaging Services

Administered expenses Ordinary annual services (Bill 1/3) 3,349 3,349 - - Departmental expenses Departmental appropriation1 2,127 2,133 6 - Expenses not requiring appropriation in the budget year2 73 73 - - Total for Program 3.3 5,549 5,555 6 -

Budget Revised Additional Reduced 2012-13 2012-13 estimates estimates $'000 $'000 $'000 $'000 Program 3.4: Pathology Services

Administered expenses Ordinary annual services (Bill 1/3) 4,738 4,738 - - Departmental expenses Departmental appropriation1 2,694 2,701 7 - Expenses not requiring appropriation in the budget year2 93 93 - - Total for Program 3.4 7,525 7,532 7 - Program 3.5: Chronic Disease - Radiation Oncology3

Administered expenses Ordinary annual services (Bill 1/3) 71,622 71,622 - - Departmental expenses Departmental appropriation1 2,516 2,523 7 - Expenses not requiring appropriation in the budget year2 87 87 - - Total for Program 3.5 74,225 74,232 7 - Outcome 3 totals by appropriation type

Administered expenses Ordinary annual services (Bill 1/3) 115,171 115,171 - - 17,845,89 18,192,94 Special appropriations 347,053 - 2 5 Departmental expenses Departmental appropriation1 39,186 40,947 1,761 - Expenses not requiring appropriation in the budget year2 1,319 1,319 - - 18,001,56 18,350,38 Total for Outcome 3 348,814 - 8 2

1Departmental appropriation combines Ordinary annual services (Appropriation Bill No 1) and Revenue from independent sources (s31). 2Expenses not requiring appropriation in the Budget year is made up of depreciation expense, amortisation expense, makegood expense and audit fees. 3Budget estimates for this program exclude National Partnership funding paid to state and territory governments by the Treasury as part of the Federal Financial Relations (FFR) framework.

2012-13 2013-14 2014-15 2015-16 $'000 $'000 $'000 $'000 Program 3.1: Medicare Services Changes to administered appropriations Appropriation Bill No.3 Price parameter adjustments1 - (1) (3) (4) Changes to departmental appropriations Appropriation Bill No.3 Measure - Dental Health Reform - Child Dental Benefits Schedule (Grow Up Smiling) 906 1,575 1,559 1,201 Measure - Medicare Benefits Schedule - amending telehealth geographical eligibility 203 110 - - Measure - Medicare Benefits Schedule - telehealth - new items 183 87 - - Medicare Benefit Schedule - removing out of hospital benefits for complex medical procedures 369 107 67 47 1,661 1,878 1,623 1,244 Program 3.2: Targeted Assistance - Medical Changes to administered appropriations Appropriation Bill No.3 Telehealth - indexation adjustment - - 142 145 Price parameter adjustments1 - (120) (5) (7) - (120) 137 138 Program 3.3: Diagnostic Imaging Services Changes to administered appropriations Appropriation Bill No.3 Price parameter adjustments1 - (3) (7) (7) - (3) (7) (7)

Table 2.3.2: Variations Table - Outcome 3 (cont.)

2012-13 2013-14 2014-15 2015-16 $'000 $'000 $'000 $'000 Program 3.4: Pathology Services Changes to administered appropriations Appropriation Bill No.3 Price parameter adjustments1 - (2) (5) (5) - (2) (5) (5) Program 3.5: Chronic Disease - Radiation Oncology Changes to administered appropriations Appropriation Bill No.3 Price parameter adjustments1 - (22) (37) (38) - (22) (37) (38) 1See explanation in glossary.

Program expenses 3.1: Medicare Services Annual administered expenses Ordinary annual services 3,777 4,170 350 540 549 Special appropriations Dental Benefits Act 2008 57,409 83,087 244,126 603,117 635,698 Health Insurance Act 1973 18,109,85 18,572,98 19,884,20 21,184,91 - medical benefits 17,826,148 8 2 4 2 Program support 33205 33,737 30,797 30,394 30,242 18,230,85 18,848,25 20,518,25 21,851,40 Total program expenses 17,920,539 2 5 5 1

Program expenses 3.2: Targeted Assistance - Medical Annual administered expenses Ordinary annual services 26,999 31,292 41,283 11,691 11,728 Program support 998 919 921 918 925 Total program expenses 27,997 32,211 42,204 12,609 12,653

Program expenses 3.3: Diagnostic Imaging Services Annual administered expenses Ordinary annual services 4,113 3,349 3,370 3,431 3,496 Program support 2396 2,206 2,199 2,191 2,208 Total program expenses 6,509 5,555 5,569 5,622 5,704

Program expenses 3.4: Pathology Services Annual administered expenses Ordinary annual services 2,950 4,738 4,287 5,329 43,376 Program support 3035 2,794 2,835 2,823 2,778 Total program expenses 5,985 7,532 7,122 8,152 46,154

Program expenses 3.5: Chronic Disease - Radiation Oncology1 Annual administered expenses Ordinary annual services 69,682 71,622 73,033 74,486 75,977 Program support 2835 2,610 2,617 2,607 2,627 Total program expenses 72,517 74,232 75,650 77,093 78,604

1Budget estimates for this program exclude National Partnership funding paid to state and territory governments by the Treasury as part of the Federal Financial Relations (FFR) framework. National Partnerships are listed in Section 2 of the 2012-13 Health and Ageing Portfolio Budget Statements under each program.

Outcome 4 Aged Care and Population Ageing

Access to quality and affordable aged care and carer support services for older people, including through subsidies and grants, industry assistance, training and regulation of the aged care sector.

Budget Revised Additional Reduced 2012-13 2012-13 estimates estimates $'000 $'000 $'000 $'000 Program 4.1: Access and Information

Administered expenses Ordinary annual services (Bill 1/3) 123,061 123,237 176 - Departmental expenses Departmental appropriation1 19,203 19,231 28 - Expenses not requiring appropriation in the budget year2 368 368 - - Total for Program 4.1 142,632 142,836 204 - Program 4.2: Home Support3

Administered expenses Ordinary annual services (Bill 1/3) 1,381,265 1,395,580 14,315 - Departmental expenses Departmental appropriation1 52,475 52,551 76 - Expenses not requiring appropriation in the budget year2 982 982 - - Total for Program 4.2 1,434,722 1,449,113 14,391 - Program 4.3: Home Care3

Administered expenses Ordinary annual services (Bill 1/3) - - - - Special appropriations Aged Care Act 1997 - community care subsidies 589,743 595,586 5,843 - - flexible care subsidies 490,361 531,665 41,304 - Departmental expenses Departmental appropriation1 6,809 6,823 14 - Expenses not requiring appropriation in the budget year2 2,663 2,663 - - Total for Program 4.3 1,089,576 1,136,737 47,161 -

Budget Revised Additional Reduced 2012-13 2012-13 estimates estimates $'000 $'000 $'000 $'000 Program 4.4: Residential and Flexible Care3

Administered expenses Ordinary annual services (Bill 1/3)4 85,803 85,803 - - Zero real interest loans - appropriation 187,995 147,995 - 40,000 - expense adjustment5 (89,762) (76,279) 13,483 - Special appropriations Aged Care Act 1997 - flexible care subsidies 377,715 363,130 - 14,585 - residential care subsidies 7,710,485 7,770,556 60,071 - Departmental expenses Departmental appropriation1 32,703 33,130 427 - Expenses not requiring appropriation in the budget year2 3,768 3,768 - - Total for Program 4.4 8,308,707 8,328,103 73,981 54,585 Program 4.5: Workforce and Quality

Administered expenses Ordinary annual services (Bill 1/3) 151,562 151,562 - - Departmental expenses Departmental appropriation1 78,061 78,265 204 - Expenses not requiring appropriation in the budget year2 2,638 2,638 - - Total for Program 4.5 232,261 232,465 204 - Program 4.6: Ageing and Service Improvement

Administered expenses Ordinary annual services (Bill 1/3) 97,504 96,504 - 1,000 Special appropriations National Health Act 1953 - s12 continence aids program 63,326 63,326 - - Departmental expenses Departmental appropriation1 24,100 24,152 52 - Expenses not requiring appropriation in the budget year2 3,154 3,154 - - Total for Program 4.6 188,084 187,136 52 1,000

Administered expenses Ordinary annual services (Bill 1/3)4 2,027,190 2,000,681 - 26,509 - expense adjustment5 (89,762) (76,279) 13,483 - Special appropriations 9,231,630 9,324,263 92,633 - Departmental expenses Departmental appropriation1 213,351 214,152 801 - Expenses not requiring appropriation in the budget year2 13,573 13,573 - - 11,395,98 11,476,39 Total for Outcome 4 106,917 26,509 2 0 1Departmental appropriation combines Ordinary annual services (Appropriation Bill No 1) and Revenue from independent sources (s31). 2Expenses not requiring appropriation in the Budget year is made up of depreciation expense, amortisation expense, makegood expense and audit fees. 3Budget estimates for this program exclude National Partnership funding paid to state and territory governments by the Treasury as part of the Federal Financial Relations (FFR) framework. National Partnerships are listed in Section 2 of the 2012-13 Health and Ageing Portfolio Budget Statements under each program. For budget estimates relating to the National Partnership component of the program, please refer to the 2012-13 Mid-Year Economic and Fiscal Outlook. 4Ordinary Annual Services (Bill 1/3) excludes appropriation for zero real interest loans (refer note below). 5Payments under the zero real interest loans program are a loan to aged care providers and not accounted for as an expense. The concessional loan discount is the expense and represents the difference between an estimate of the market rate of interest, and that recovered under the loan agreement, over the life of the loan. This adjustment recognises the difference between the appropriation and the concessional loan discount expense.

Budget Revised 2012-13 2012-13 Average staffing level (number) 1,408 1,410

2012-13 2013-14 2014-15 2015-16 $'000 $'000 $'000 $'000 Program 4.1: Access and Information Changes to administered appropriations Appropriation Bill No. 3 Aged Care Assessment Program - variation to reflect expected costs 176 188 (77) 1,780 Price parameter and other adjustments1 - (66) (45) (62) 176 122 (122) 1,718 Program 4.2: Home Support Changes to administered appropriations Appropriation Bill No. 3 Home and Community Care - variation to reflect expected costs 14,315 (9,087) (20,127) (23,814) Price parameter adjustments1 - (968) (1,556) (1,884) 14,315 (10,055) (21,683) (25,698) Program 4.4: Residential and Flexible Care Changes to administered appropriations Appropriation Bill No. 3 Price parameter adjustments1 - (721) (772) (740) Zero real interest loans - reprofile of funds (40,000) 37,500 29,357 37,500 Changes to departmental appropriations Appropriation Bill No. 3 Residential and Flexible Care - funding adjustment 327 413 1,118 1,045 (39,673) 37,192 29,703 37,805 Program 4.5: Workforce and Quality Changes to administered appropriations Appropriation Bill No. 3 Aged Care Accrediation Agency - reprofile of funds - 2,703 (3,076) 373 Addressing Workforce Pressures - variation to reflect expected costs - (114) 726 2,836 Price parameter adjustments1 - (309) (429) (586) - 2,280 (2,779) 2,623

Table 2.4.2: Variations Table - Outcome 4 (cont.)

2012-13 2013-14 2014-15 2015-16 $'000 $'000 $'000 $'000 Program 4.6: Ageing and Service Improvement Changes to administered appropriations Appropriation Bill No. 3 Measure - Advertising Media Campaigns - reduction (1,000) - - - Price parameter adjustments1 - (226) (337) (445) (1,000) (226) (337) (445) 1See explanation in glossary.

2012-13 2013-14 2014-15 2015-16 Revised Forward Forward Forward budget1 year 1 year 2 year 3 $'000 $'000 $'000 $'000 Program expenses 4.1: Access and Information Annual administered expenses Ordinary annual services 123,237 131,834 127,464 135,518 Program support 19,599 24,479 25,098 27,127 Total program expenses 142,836 156,313 152,562 162,645

2 Program expenses 4.2: Home Support Annual administered expenses 1,494,83 1,613,60 Ordinary annual services 1,395,580 4 9 1,730,867 Program support 53,533 54,402 54,143 52,477 1,549,23 1,667,75 Total program expenses 1,449,113 6 2 1,783,344

2 Program expenses 4.3: Home Care Annual administered expenses Ordinary annual services - - 1,282 1,781 Special appropriations Aged Care Act 1997 - community care subsidies 595,586 658,156 689,505 725,880 - flexible care subsidies 531,665 546,396 602,720 683,918 Program support 9,486 10,252 10,940 11,922 1,214,80 1,304,44 Total program expenses 1,136,737 4 7 1,423,501

Program expenses 4.4: Residential and Flexible Care2 Annual administered expenses Ordinary annual services3 85,803 95,975 97,689 93,852 Zero real interest loans - appropriation 147,995 170,000 66,857 37,500 - expense adjustment4 (76,279) (79,198) (28,629) (16,091) Special appropriations Aged Care Act 1997 - flexible care subsidies 363,130 378,279 382,476 389,600 - residential care subsidies 8,266,13 8,811,87 7,770,556 0 9 9,473,514 Program support 36,898 38,227 38,720 37,592 8,869,41 9,368,99 10,015,96 Total program expenses 8,328,103 3 2 7

Program expenses 4.5: Workforce and Quality Annual administered expenses Ordinary annual services 151,562 179,846 185,944 219,456 Program support 80,903 80,772 78,725 79,350 Total program expenses 232,465 260,618 264,669 298,806

Table 2.4.3: Program Expenses Table - Outcome 41 (cont.)

2012-13 2013-14 2014-15 2015-16 Revised Forward Forward Forward Budget1 year 1 year 2 year 3 $'000 $'000 $'000 $'000 Program expenses 4.6: Ageing and Service Improvement Annual administered expenses Ordinary annual services2 96,504 118,352 114,610 113,028 Special appropriations: National Health Act 1956 - s12 continence aids program 63,326 77,165 91,266 106,025 Program support 27,306 26,941 25,667 25,539 Total program expenses 187,136 222,458 231,543 244,592 1In the 2012-13 Budget, the Government announced a number of reforms through the Living Longer, Living Better package that required a program restructure. The 2011-12 actuals are based on the old program structure and are not comparable and therefore have been excluded from the tables above. 2Budget estimates for this program exclude National Partnership funding paid to state and territory governments by the Treasury as part of the Federal Financial Relations (FFR) framework. National Partnerships are listed in Section 2 of the 2012-13 Health and Ageing Portfolio Budget Statements under each program. For budget estimates relating to the National Partnership component of the program, please refer to the 2012-13 Mid-Year Economic and Fiscal Outlook. 3Ordinary annual services excludes appropriation/expense for zero real interest loans (refer note below). 4Payments under the zero real interest loans program are a loan to aged care providers and not accounted for as an expense. The concessional loan discount is the expense and represents the difference between an estimate of the market rate of interest, and that recovered under the loan agreement, over the life of the loan. This adjustment recognises the difference between the appropriation and the concessional loan discount expense.

Outcome 5 PRIMARY CARE Access to comprehensive, community-based health care, including through first point of call services for prevention, diagnosis and treatment of ill-health, and for ongoing management of chronic disease.

Program 5.1: Primary Care Education and Training Administered expenses Ordinary annual services (Bill 1/3) 6,852 6,852 - - Departmental expenses Departmental appropriation1 357 357 - - Expenses not requiring appropriation in the budget year2 14 14 - - Total for Program 5.1 7,223 7,223 - -

Program 5.2: Primary Care Financing, Quality and Access3 Administered expenses Ordinary annual services (Bill 1/3) 575,590 561,715 - 13,875 Departmental expenses Departmental appropriation1 27,491 28,293 802 - Expenses not requiring appropriation in the budget year2 1,104 1,104 - - Total for Program 5.2 604,185 591,112 802 13,875

Program 5.3: Primary Care Practice Incentives Administered expenses Ordinary annual services (Bill 1/3) 284,132 280,507 - 3,625 Departmental expenses Departmental appropriation1 1,537 1,537 - - Expenses not requiring appropriation in the budget year2 55 55 - - Total for Program 5.3 285,724 282,099 - 3,625

Table 2.5.1: Resource Summary - Outcome 5 (cont.)

Administered expenses Ordinary annual services (Bill 1/3) 866,574 849,074 - 17,500 Departmental expenses Departmental appropriation1 29,385 30,187 802 - Expenses not requiring appropriation in the budget year2 1,173 1,173 - - Total for Outcome 5 897,132 880,434 802 17,500 1Departmental appropriation combines Ordinary annual services (Appropriation Bill No 1) and Revenue from independent sources (s31). 2Expenses not requiring appropriation in the Budget year is made up of depreciation expense, amortisation expense, makegood expense and audit fees. 3Budget estimates for this program exclude National Partnership funding paid to state and territory governments by the Treasury as part of the Federal Financial Relations (FFR) framework. National Partnerships are listed in Section 2 of the 2012-13 Health and Ageing Portfolio Budget Statements under each program. For budget estimates relating to the National Partnership component of the program, please refer to the 2012-13 Mid-Year Economic and Fiscal Outlook.

2012-13 2013-14 2014-15 2015-16 $'000 $'000 $'000 $'000 Program 5.1: Primary Care Education and Training Changes to administered appropriations Appropriation Bill No. 3 Price parameter adjustments1 - (14) (24) (33) - (14) (24) (33) Program 5.2: Primary Care Financing, Quality and Access Changes to administered appropriations Appropriation Bill No. 3 Measure - Tasmania's Health System - additional funding 2,500 14,252 18,672 21,670 Measure - Video Conferencing for the After Hours GP Helpline - staged implementation (20,000) - - - GP Super Clinics measure - reprofile of funding - 23,040 13,246 8,000 Primary Care Financing - transfer of funds from Program 5.3 Primary Care Practice Incentives 3,625 4,000 4,000 4,000 Price parameter adjustments1 - (1,088) (1,689) (2,288) Changes to departmental appropriations Appropriation Bill No. 3 Measure - Tasmania's Health System - additional funding 711 717 722 728 (13,164) 40,921 34,951 32,110 Program 5.3: Primary Care Practice Incentives Changes to administered appropriations Appropriation Bill No. 3 Primary Care Financing - transfer of funds to Program 5.2 Primary Care Financing, Quality and access (3,625) (4,000) (4,000) (4,000) Price parameter adjustments1 - (627) (1,118) (1,145) (3,625) (4,627) (5,118) (5,145)

1See explanation in glossary.

2011-12 2012-13 2013-14 2014-15 2015-16 Actual Revised Forward Forward Forward budget year 1 year 2 year 3

$'000 $'000 $'000 $'000 $'000

Program expenses 5.1: Primary Care Education and Training

Annual administered expenses

Ordinary annual services 4,306 6,852 7,077 8,227 8,374

Program support 415 371 373 372 375

Total program expenses 4,721 7,223 7,450 8,599 8,749

Program expenses 5.2: Primary Care Financing, Quality and Access1

Program support 34139 29,397 28,921 28,365 28,627

Program expenses 5.3: Primary Care Practice Incentives

Program support 1695 1,592 1,544 1,416 1,429

1Budget estimates for this program exclude National Partnership funding paid to state and territory governments by the Treasury as part of the Federal Financial Relations (FFR) framework. National Partnerships are listed in Section 2 of the 2012-13 Health and Ageing Portfolio Budget Statements under each program. For budget estimates relating to the National Partnership component of the program, please refer to the 2012-13 Mid-Year Economic and Fiscal Outlook.

Outcome 6 RURAL HEALTH Access to health services for people living in rural, regional and remote Australia, including through health infrastructure and outreach services.

Budget Revised Additional Reduced 2012-13 2012-13 estimates estimates $'000 $'000 $'000 $'000 Program 6.1: Rural Health Services

Administered expenses Ordinary annual services (Bill 1/3) 87,230 87,480 250 - Departmental expenses Departmental appropriation1 11,150 11,261 111 - Expenses not requiring appropriation in the budget year2 448 448 - - Total for Program 6.1 98,828 99,189 361 - Outcome 6 totals by appropriation type

Administered expenses Ordinary annual services (Bill 1/3) 87,230 87,480 250 - Departmental expenses Departmental appropriation1 11,150 11,261 111 - Expenses not requiring appropriation in the budget year2 448 448 - - Total for Outcome 6 98,828 99,189 361 - 1Departmental appropriation combines Ordinary annual services (Appropriation Bill No 1) and Revenue from independent sources (s31). 2Expenses not requiring appropriation in the Budget year is made up of depreciation expense, amortisation expense, makegood expense and audit fees.

2012-13 2013-14 2014-15 2015-16 $'000 $'000 $'000 $'000

Program 6.1: Rural Health Services Changes to administered appropriations Appropriation Bill No. 3 Measure - Tasmania's Health System - additional funding 250 1,021 1,564 2,392 Price parameter adjustments1 - (305) (469) (584) Changes to departmental appropriations Appropriation Bill No. 3 Measure - Tasmania's Health System - additional funding 76 77 98 78 326 793 1,193 1,886 1See explanation in glossary.

2011-12 2012-13 2013-14 2014-15 2015-16 Actual Revised Forward Forward Forward budget year 1 year 2 year 3 $'000 $'000 $'000 $'000 $'000 Program expenses 6.1: Rural Health Services Annual administered expenses Ordinary annual services 100,350 87,480 99,350 101,773 104,573 Program support 13870 11,709 11,650 11,618 11,702 Total program expenses 114,220 99,189 111,000 113,391 116,275

Outcome 7 HEARING SERVICES A reduction in the incidence and consequence of hearing loss, including through research and prevention activities, and access to hearing services and devices for eligible people.

Budget Revised Additional Reduced 2012-13 2012-13 estimates estimates $'000 $'000 $'000 $'000 Program 7.1: Hearing Services

Administered expenses Ordinary annual services (Bill 1/3) 404,179 404,257 78 - Departmental expenses Departmental appropriation1 11,737 11,766 29 - Expenses not requiring appropriation in the budget year2 369 369 - - Total for Outcome 7 416,285 416,392 107 - 1Departmental appropriation combines Ordinary annual services (Appropriation Bill No 1) and Revenue from independent sources (s31). 2Expenses not requiring appropriation in the Budget year is made up of depreciation expense, amortisation expense, makegood expense and audit fees.

2012-13 2013-14 2014-15 2015-16 $'000 $'000 $'000 $'000 Program 7.1: Hearing Services Changes to administered appropriations Appropriation Bill No.3 Hearing services - expansion of the humanitarian program by 4000 places 78 96 98 101 78 96 98 101

Program expenses 7.1: Hearing Services Annual administered expenses Ordinary annual services 377,490 404,257 442,520 481,716 539,213 Program support 12,728 12,135 11,666 11,306 11,392 Total program expenses 390,218 416,392 454,186 493,022 550,605

Outcome 8 INDIGENOUS HEALTH Closing the gap in life expectancy and child mortality rates for Indigenous Australians, including through primary health care, child and maternal health, and substance use services.

Table 2.8.1: Resource Summary – Outcome 8

Budget Revised Additional Reduced 2012-13 2012-13 estimates estimates $'000 $'000 $'000 $'000 Program 8.1: Aboriginal and Torres Strait Islander

Health1 Administered expenses Ordinary annual services (Bill 1/3) 705,659 705,659 - - Departmental expenses Departmental appropriation2 52,495 52,644 149 - Expenses not requiring appropriation in the budget year3 1,925 1,925 - - Total for Program 8.1 760,079 760,228 149 - Outcome 8 totals by appropriation type

Administered expenses Ordinary annual services (Bill 1/3) 705,659 705,659 - - Departmental expenses Departmental appropriation2 52,495 52,644 149 - Expenses not requiring appropriation in the budget year3 1,925 1,925 - - Total for Outcome 8 760,079 760,228 149 - 1Budget estimates for this program exclude National Partnership funding paid to state and territory governments by the Treasury as part of the Federal Financial Relations (FFR) framework. Program 8.1 also includes Renal Dialysis Services in Central Australia, Family Centric Renal Accommodation for Aboriginal and Torres Strait Islander peoples in the Northern Territory and Torres Strait Health Protection Strategy - Saibai Island Health Clinic National Partnerships not included in the 2012-13 PBS. 2Departmental appropriation combines Ordinary annual services (Appropriation Bill No 1) and Revenue from independent sources (s31). 3Expenses not requiring appropriation in the Budget year is made up of depreciation expense, amortisation expense, makegood expense and audit fees.

Table 2.8.2: Variations Table – Outcome 8

2012-13 2013-14 2014-15 2015-16 $'000 $'000 $'000 $'000

Program 8.1: Aboriginal and Torres Strait Islander Health Changes to administered appropriations Appropriation Bill No. 3 Stronger Futures in the Northern Territory - Health1 - 50,372 53,615 53,505 Further ATSI Chronic Disease Fund - variation to reflect expected costs - - - 4,946 Price parameter adjustments2 - (1,974) (3,278) (3,640) Changes to departmental appropriations Appropriation Bill No. 3 Stronger Futures in the Northern Territory - Health1 - 2,961 2,394 2,835 - 51,359 52,731 57,646

1Decision taken but not announced in the 2012-13 Budget. 2See explanation in glossary.

Table 2.8.3: Program Expenses Table – Outcome 8

2011-12 2012-13 2013-14 2014-15 2015-16 Actual Revised Forward Forward Forward budget year 1 year 2 year 3 $'000 $'000 $'000 $'000 $'000 Program expenses 8.1: Aboriginal and Torres Strait Islander Health1 Annual administered expenses Ordinary annual services 682,090 705,659 801,275 808,944 843,692 Program support 60,192 54,569 53,958 53,058 53,900 Total program expenses 742,282 760,228 855,233 862,002 897,592 1Budget estimates for this program exclude National Partnership funding paid to state and territory governments by the Treasury as part of the Federal Financial Relations (FFR) framework. Program 8.1 also includes Renal Dialysis Services in Central Australia, Family Centric Renal Accommodation for Aboriginal and Torres Strait Islander peoples in the Northern Territory and Torres Strait Health Protection Strategy - Saibai Island Health Clinic National Partnerships not included in the 2012-13 PBS. For budget estimates relating to the National Partnership component of the program, please refer to the 2012-13 Mid-Year Economic and Fiscal Outlook.

Outcome 9 PRIVATE HEALTH Improved choice in health services by supporting affordable quality private health care, including through private health insurance rebates and a regulatory framework.

Budget Revised Additional Reduced 2012-13 2012-13 estimates estimates $'000 $'000 $'000 $'000 Program 9.1: Private Health Insurance

Administered expenses Ordinary annual services (Bill 1/3) 2,591 5,091 2,500 - Special appropriations Private Health Insurance Act 2007 - private health insurance rebate 4,158,297 4,470,801 312,504 - - risk equalisation trust fund 360,000 360,000 - - - council administration levy 6,226 6,226 - - Departmental expenses Departmental appropriation1 10,020 10,840 820 - Expenses not requiring appropriation in the budget year2 310 310 - - Total for Program 9.1 4,537,444 4,853,268 315,824 - Outcome 9 totals by appropriation type

Administered expenses Ordinary annual services (Bill 1/3) 2,591 5,091 2,500 - Special appropriations 4,524,523 4,837,027 312,504 - Departmental expenses Departmental appropriation1 10,020 10,840 820 - Expenses not requiring appropriation in the budget year2 310 310 - - Total for Outcome 9 4,537,444 4,853,268 315,824 -

1Departmental appropriation combines Ordinary annual services (Appropriation Bill No 1) and Revenue from independent sources (s31). 2Expenses not requiring appropriation in the Budget year is made up of depreciation expense, amortisation expense, makegood expense and audit fees.

2012-13 2013-14 2014-15 2015-16 $'000 $'000 $'000 $'000 Program 9.1: Private Health Insurance Changes to administered appropriations Appropriation Bill No. 3 Measure - Private Health Insurance Rebate - indexing the Government's contribution 2,500 3,000 - - Changes to departmental appropriations Appropriation Bill No. 3 Measure - Private Health Insurance Rebate - indexing the Government's contribution 523 518 57 57 Measure - Private Health Insurance Rebate - removal of rebate on lifetime health cover loading 273 179 23 - 3,296 3,697 80 57

Program expenses 9.1: Private Health Insurance Annual administered expenses Ordinary annual services 3,614 5,091 4,807 1,807 1,807 Special appropriations Private Health Insurance Act 2007 - private health insurance 4,470,80 4,020,83 4,008,41 4,001,58 rebate 5,473,209 1 0 9 5 - risk equalisation trust fund 377,069 360,000 385,000 410,000 445,000 - council administration levy 5,366 6,226 6,370 6,687 6,820 Program support 10201 11,150 10,810 9,954 10,005 4,853,26 4,427,81 4,436,86 4,465,21 Total program expenses 5,869,459 8 7 7 7

Outcome 10 HEALTH SYSTEM CAPACITY AND QUALITY Improved long-term capacity, quality and safety of Australia’s health care system to meet future health needs, including through investment in health infrastructure, international engagement, consistent performance reporting and research.

Budget Revised Additional Reduced 2012-13 2012-13 estimates estimates $'000 $'000 $'000 $'000 Program 10.1: Chronic Disease - Treatment1

Administered expenses Ordinary annual services (Bill 1/3) 2,100 3,026 926 - Special accounts Health and Hospitals Fund Health Portfolio2 266,374 266,374 - - Departmental expenses Departmental appropriation3 2,539 2,545 6 - Expenses not requiring appropriation in the budget year4 131 131 - - Total for Program 10.1 271,144 272,076 932 - Program 10.2: e-Health Implementation

Administered expenses Ordinary annual services (Bill 1/3) 65,430 66,336 906 - Departmental expenses Departmental appropriation3 16,270 16,301 31 - Expenses not requiring appropriation in the budget year4 402 402 - - Total for Program 10.2 82,102 83,039 937 - Program 10.3: Health Information

Administered expenses Ordinary annual services (Bill 1/3) 32,561 32,561 - - Departmental expenses Departmental appropriation3 2,973 2,982 9 - Expenses not requiring appropriation in the budget year4 121 121 - - Total for Program 10.3 35,655 35,664 9 -

Budget Revised Additional Reduced 2012-13 2012-13 estimates estimates $'000 $'000 $'000 $'000 Program 10.4: International Policy Engagement

Administered expenses Ordinary annual services (Bill 1/3) 14,912 14,912 - - Departmental expenses Departmental appropriation3 16 16 - - Expenses not requiring appropriation in the budget year4 1 1 - - Total for Program 10.4 14,929 14,929 - - Program 10.5: Research Capacity and Quality1

Administered expenses Ordinary annual services (Bill 1/3) 31,372 31,064 - 308 Special accounts Health and Hospitals Fund Health Portfolio2 37,605 37,605 - - Departmental expenses Departmental appropriation3 5,419 5,432 13 - Expenses not requiring appropriation in the budget year4 231 231 - - Total for Program 10.5 74,627 74,332 13 308 Program 10.6: Health Infrastructure

Administered expenses Special accounts Health and Hospitals Fund Health Portfolio2 417,773 415,842 - 1,931 Departmental expenses Departmental appropriation3 2,539 2,545 6 - Expenses not requiring appropriation in the budget year4 131 131 - - Total for Program 10.6 420,443 418,518 6 1,931

Administered expenses Ordinary annual services (Bill 1/3) 146,375 147,899 1,524 - Special accounts 721,752 719,821 - 1,931 Departmental expenses Departmental appropriation3 29,756 29,821 65 - Expenses not requiring appropriation in the budget year4 1,017 1,017 - - Total for Outcome 10 898,900 898,558 1,589 1,931 1Budget estimates for this program exclude National Partnership funding paid to state and territory governments by the Treasury as part of the Federal Financial Relations (FFR) framework. National Partnerships are listed in Section 2 of the 2012-13 Health and Ageing Portfolio Budget Statements under each program. For budget estimates relating to the National Partnership component of the program, please refer to the 2012-13 Mid-Year Economic and Fiscal Outlook. 2Health and Hospital Fund payments to the states and territories, included in this program, are paid by the Treasury. For more detailed estimates relating to state and territory payments under this program refer to the Mid-Year Economic and Fiscal Outlook. 3Departmental appropriation combines Ordinary annual services (Appropriation Bill No 1) and Revenue from independent sources (s31). 4Expenses not requiring appropriation in the Budget year is made up of depreciation expense, amortisation expense, makegood expense and audit fees.

2012-13 2013-14 2014-15 2015-16 $'000 $'000 $'000 $'000 Program 10.1: Chronic Disease - Treatment Changes to administered appropriations Appropriation Bill No. 3 Measure - Springfield Cancer Care Centre 926 10,438 10,078 - 926 10,438 10,078 - Program 10.2: e-Health Implementation Changes to administered appropriations Appropriation Bill No. 3 Measure - Tasmania's Health System - additional funding - 5,896 9,738 4,263 Electronic Health Records - transfer of funds from Program 10.5 Research Capacity and Quality 906 - - - Price parameter adjustments1 - (34) (36) (40) Changes to departmental appropriations Appropriation Bill No. 3 Measure - Tasmania's Health System - additional funding - 545 793 799 906 6,407 10,495 5,022 Program 10.3: Health Information Changes to administered appropriations Appropriation Bill No. 3 Price parameter adjustments1 - (55) (83) (113) - (55) (83) (113) Program 10.5: Research Capacity and Quality Changes to administered appropriations Appropriation Bill No. 3 Measure - National Immunisation Program - extended listing of Gardasil 598 541 554 568 Electronic Health Records - transfer of funds to Program 10.2 e-Health Implementation (906) - - - Price parameter adjustments1 - (42) (64) (86) (308) 499 490 482

Program expenses 10.1: Chronic Disease - Treatment1 Annual administered expenses Ordinary annual services 5,000 3,026 10,438 10,078 - Special account expenses Health and Hospitals Fund Health Portfolio Special Account2 494,636 266,374 142,893 72,379 50,000 Program support 2466 2,676 2,682 2,673 2,690 Total program expenses 502,102 272,076 156,013 85,130 52,690

Program expenses 10.2: e-Health Implementation Annual administered expenses Ordinary annual services 358,641 66,336 106,527 15,822 10,032 Program support 13080 16,703 17,166 9,593 9,692 Total program expenses 371,721 83,039 123,693 25,415 19,724

Program expenses 10.3: Health Information Annual administered expenses Ordinary annual services 31,844 32,561 29,851 30,152 30,719 Program support 3816 3,103 2,648 2,634 2,662 Total program expenses 35,660 35,664 32,499 32,786 33,381

Program expenses 10.4: International Policy Engagement Annual administered expenses Ordinary annual services 10,000 14,912 14,912 14,912 14,912 Program support 16 17 17 17 17 Total program expenses 10,016 14,929 14,929 14,929 14,929

Program expenses 10.5: Research Capacity and Quality1 Annual administered expenses Ordinary annual services 124,754 31,064 87,192 87,321 87,710 Special Account expenses Health and Hospitals Fund Health Portfolio Special Account2 194,001 37,605 28,695 - - Program support 5729 5,663 5,676 5,656 5,696 Total program expenses 324,484 74,332 121,563 92,977 93,406

Table 2.10.3: Program Expenses Table - Outcome 10 (cont.)

Program expenses 10.6: Health Infrastructure Special account expenses Health and Hospitals Fund Health Portfolio Special Account2 552,215 415,842 408,654 397,893 482,974 Program support 2466 2,676 2,689 2,680 2,697 Total program expenses 554,681 418,518 411,343 400,573 485,671

1Budget estimates for this program exclude National Partnership funding paid to state and territory governments by the Treasury as part of the Federal Financial Relations (FFR) framework. National Partnerships are listed in Section 2 of the 2012-13 Health and Ageing Portfolio Budget Statements under each program. For budget estimates relating to the National Partnership component of the program, please refer to the 2012-13 Mid-Year Economic and Fiscal Outlook. 2Health and Hospitals Fund payments to the states and territories, included in this program, are paid by the Treasury. For more detailed estimates relating to state and territory payments under this program refer to the 2012-13 Mid-Year Economic and Fiscal Outlook.

Outcome 11 MENTAL HEALTH Improved mental health and suicide prevention, including through targeted prevention, identification, early intervention and health care services.

Budget Revised Additional Reduced 2012-13 2012-13 estimates estimates $'000 $'000 $'000 $'000 Program 11.1: Mental Health1

Administered expenses Ordinary annual services (Bill 1/3) 385,737 386,596 859 - Departmental expenses Departmental appropriation2 16,708 16,830 122 - Expenses not requiring appropriation in the budget year3 690 690 - - Total for Outcome 11 403,135 404,116 981 - 1Budget estimates for this program exclude National Partnership funding paid to state and territory governments by the Treasury as part of the Federal Financial Relations (FFR) framework. National Partnerships are listed in Section 2 of the 2012-13 Health and Ageing Portfolio Budget Statements under each program. For budget estimates relating to the National Partnership component of the program, please refer to the 2012-13 Mid-Year Economic and Fiscal Outlook. 2Departmental appropriation combines Ordinary annual services (Appropriation Bill No 1) and Revenue from independent sources (s31). 3Expenses not requiring appropriation in the Budget year is made up of depreciation expense, amortisation expense, makegood expense and audit fees.

2012-13 2013-14 2014-15 2015-16 $'000 $'000 $'000 $'000 Program 11.1: Mental Health Changes to administered appropriations Appropriation Bill No. 3 Measure - Whole of Government Savings from Paused Grants Programs (5,000) - - - Measure - Tasmania's Health System - additional funding - 3,000 4,000 4,000 Assistance for Survivors of Torture and Trauma - increase in the Humanitarian Program to 20,000 places 5,859 5,984 6,165 6,281 Price parameter adjustments1 - (825) (1,421) (2,097) Changes to departmental appropriations Appropriation Bill No. 3 Measure - Tasmania's Health System - additional funding 71 72 72 73 Correction to Base Funding - - - 50 930 8,231 8,816 8,307

1 Program expenses 11.1: Mental Health Annual administered expenses Ordinary annual services 255,183 386,596 456,730 521,563 572,505 Program support 19451 17,520 16,915 16,724 16,884 Total program expenses 274,634 404,116 473,645 538,287 589,389 1Budget estimates for this program exclude National Partnership funding paid to state and territory governments by the Treasury as part of the Federal Financial Relations (FFR) framework. National Partnerships are listed in Section 2 of the 2012-13 Health and Ageing Portfolio Budget Statements under each program. For budget estimates relating to the National Partnership component of the program, please refer to the 2012-13 Mid-Year Economic and Fiscal Outlook.

Outcome 12 HEALTH WORKFORCE CAPACITY Improved capacity, quality and mix of the health workforce to meet the requirements of health services, including through training, registration, accreditation and distribution strategies.

Budget Revised Additional Reduced 2012-13 2012-13 estimates estimates $'000 $'000 $'000 $'000 Program 12.1: Workforce and Rural Distribution

Administered expenses Ordinary annual services (Bill 1/3) 1,021,361 1,020,248 - 1,113 Departmental expenses Departmental appropriation1 16,158 16,381 223 - Expenses not requiring appropriation in the budget year2 593 593 - - Total for Program 12.1 1,038,112 1,037,222 223 1,113 Program 12.2: Workforce Development and Innovation3

Administered expenses Ordinary annual services (Bill 1/3) 299,020 300,920 1,900 - Departmental expenses Departmental appropriation1 6,766 6,783 17 - Expenses not requiring appropriation in the budget year2 237 237 - - Total for Program 12.2 306,023 307,940 1,917 - Outcome 12 totals by appropriation type

Administered expenses Ordinary annual services (Bill 1/3) 1,320,381 1,321,168 787 - Departmental expenses Departmental appropriation1 22,924 23,164 240 - Expenses not requiring appropriation in the budget year2 830 830 - - Total for Outcome 12 1,344,135 1,345,162 1,027 - 1Departmental appropriation combines Ordinary annual services (Appropriation Bill No 1) and Revenue from independent sources (s31). 2Expenses not requiring appropriation in the Budget year is made up of depreciation expenses. 3Budget estimates for program exclude National Partnership funding paid to state and territory governments by the Treasury as part of the Federal Financial Relations (FFR) framework. Budget Revised 2012-13 2012-13 Average staffing level (number) 174 175

2012-13 2013-14 2014-15 2015-16 $'000 $'000 $'000 $'000

Program 12.1: Workforce and Rural Distribution Changes to administered appropriations Appropriation Bill No. 3 Measure - Tasmania's Health System - additional funding 787 12,784 15,690 18,194 Mental Health Nurse Incentive Program - transfer to Program 12.2 Workforce Development and Innovation (1,900) - - - Price parameter adjustments1 - (1,953) (3,122) (4,285) Changes to departmental appropriations Appropriation Bill No. 3 Measure - Tasmania's Health System - additional funding 177 236 238 240 (936) 11,067 12,806 14,149 Program 12.2: Workforce Development and Innovation Changes to administered appropriations Appropriation Bill No. 3 Measure - Tasmania's Health System - additional funding - 808 192 - Mental Health Nurse Incentive Program - transfer from Program 12.1 Workforce and Rural Distribution 1,900 - - - Price parameter adjustments1 - (518) (745) (979) Changes to departmental appropriations Appropriation Bill No. 3 Measure - Tasmania's Health System - additional funding - 31 - - 1,900 321 (553) (979) 1See explanation in glossary.

2011-12 2012-13 2013-14 2014-15 2015-16 Actual Revised Forward Forward Forward budget year 1 year 2 year 3 $'000 $'000 $'000 $'000 $'000 Program expenses 12.1: Workforce and Rural Distribution Annual administered expenses 1,020,24 1,080,14 1,148,88 1,181,70 Ordinary annual services 776,466 8 0 8 9 Program support 20774 16,974 16,621 16,374 16,513 1,037,22 1,096,76 1,165,26 1,198,22 Total program expenses 797,240 2 1 2 2

Program expenses 12.2: Workforce Development and Innovation1 Annual administered expenses Ordinary annual services 326,957 300,920 324,560 311,788 313,426 Program support 7600 7,020 7,207 7,114 6,964 Total program expenses 334,557 307,940 331,767 318,902 320,390 1Budget estimates for this program exclude National Partnership funding paid to state and territory governments by the Treasury as part of the Federal Financial Relations (FFR) framework. National Partnerships are listed in Section 2 of the 2012-13 Health and Ageing Portfolio Budget Statements under each program. For budget estimates relating to the National Partnership component of the program, please refer to the 2012-13 Mid-Year Economic and Fiscal Outlook.

Outcome 13 ACUTE CARE Improved access to public hospitals, acute care services and public dental services, including through targeted strategies, and payments to state and territory governments.

Budget Revised Additional Reduced g

2012-13 2012-13 estimates estimates n

$'000 $'000 $'000 $'000

Administered expenses d

Ordinary annual services (Bill 1/3) 12,100 12,100 - - t

Special appropriations n

National Health Act 1953 - Blood l

Fractionation Products and s

Blood Related Products to m

National Blood Authority 681,848 681,848 - - a

Departmental expenses 2 S

Departmental appropriation 3,764 3,774 10 - t

Expenses not requiring appropriation in e the budget year3 125 125 - - m

Total for Program 13.1 697,837 697,847 10 - n

— Program 13.2: Medical Indemnity

Administered expenses g

Ordinary annual services (Bill 1/3) 175 175 - - n

c Special appropriations y

Medical Indemnity Act 2002 112,300 109,089 - 3,211 a

Midwife Professional Indemnity e (Commonwealth Contribution) Scheme Act 2010 1,302 1,302 - - Departmental expenses Departmental appropriation2 744 746 2 - Expenses not requiring appropriation in the budget year3 26 26 - - Total for Program 13.2 114,547 111,338 2 3,211 Program 13.3: Public Hospitals and Information1

Administered expenses Ordinary annual services (Bill 1/3)4 117,848 108,207 20,310 29,951 Departmental expenses Departmental appropriation2 48,051 49,498 1,447 - Expenses not requiring appropriation in the budget year3 13,041 13,041 - - Total for Program 13.3 178,940 170,746 21,757 29,951

88 Section 3 – Budgeted Financial Statements

Administered expenses Ordinary annual services (Bill 1/3) 130,123 120,482 - 9,641 Special appropriations 795,450 792,239 - 3,211 Departmental expenses Departmental appropriation2 52,559 54,018 1,459 - Expenses not requiring appropriation in the budget year3 13,192 13,192 - - Total for Outcome 13 991,324 979,931 1,459 12,852 1Budget estimates for this program exclude National Partnership funding paid to state and territory governments by the Treasury as part of the Federal Financial Relations (FFR) framework. National Partnerships are listed in Section 2 of the 2012-13 Health and Ageing Portfolio Budget Statements under each program. Program 13.3 also includes the Adult Public Dental Services National Partnership announced as part of the Dental Health Reform package. For budget estimates relating to National Partnerships, please refer to the 2012-13 Mid-Year Economic and Fiscal Outlook. 2Departmental appropriation combines Ordinary annual services (Appropriation Bill No 1) and Revenue from independent sources (s31). 3Expenses not requiring appropriation in the Budget year is made up of depreciation expense, amortisation expense, makegood expense and audit fees. 4The reduction of $29.951m represents a transfer of appropriations to the National Health Performance Authority under section 32 of the FMA Act.

Table 2.13.2: Variations Table – Outcome 13

2012-13 2013-14 2014-15 2015-16 $'000 $'000 $'000 $'000 Program 13.1: Blood and Organ Donation Services Changes to administered appropriations Appropriation Bill No. 3 Price parameter adjustments1 - (16) (22) (27) - (16) (22) (27) Program 13.3: Public Hospitals and Information Changes to administered appropriations Appropriation Bill No.3 Measure - Tasmania's Health System - additional funding 20,310 12,764 13,274 15,192 Measure - Dental Health Reform - Flexible Grants Program - - 50,000 55,000 National Health Performance Authority - transfer of funds on agency establishment (29,951) (33,761) (34,191) (34,847) Price parameter adjustments1 - (28) (334) (426)

Changes to departmental appropriations Appropriation Bill No.3 Measure - Tasmania's Health System - additional funding 1,129 631 636 314 Measure - Dental Health Reform - National Partnership Agreement for Adult Public Dental Services - - 788 771 Measure - Dental Health Reform - Flexible Grants Program - - 499 491 Fraud Prevention and Compliance - Health 215 217 218 - (8,297) (20,177) 30,890 36,495 1See explanation in glossary.

Table 2.13.3: Program Expenses Table – Outcome 13

Program expenses 13.1: Blood and Organ Donation Services1 Annual administered expenses Ordinary annual services 10,238 12,100 12,258 12,308 12,305 Special appropriations National Health Act 1953 - Blood Fractionation, Products and Blood Related Products to National Blood Authority 640,251 681,848 733,689 794,955 860,155 Program support 4000 3,899 3,983 3,900 3,931 Total program expenses 654,489 697,847 749,930 811,163 876,391

Program expenses 13.2: Medical Indemnity Annual administered expenses Ordinary annual services 162 175 150 150 150 Special appropriations Medical Indemnity Act 2002 172,426 109,089 112,402 119,258 120,453 Midwife Professional Indemnity (Run-off Cover Support Payment) Act 2010 - 1,302 4,100 7,303 9,051 Program support 839 772 774 771 777 Total program expenses 173,427 111,338 117,426 127,482 130,431

Program expenses 13.3: Public Hospitals and Information1 Annual administered expenses Ordinary annual services 78,433 108,207 101,848 143,635 145,463 Program support 55423 62,539 59,692 59,449 58,858 Total program expenses 133,856 170,746 161,540 203,084 204,321 1Budget estimates for this program exclude National Partnership funding paid to state and territory governments by the Treasury as part of the Federal Financial Relations (FFR) framework. National Partnerships are listed in Section 2 of the 2012-13 Health and Ageing Portfolio Budget Statements under each program. Program 13.3 also includes the Adult Public Dental Services National Partnership announced as part of the Dental Health Reform package. For budget estimates relating to National Partnerships, please refer to the 2012-13 Mid-Year Economic and Fiscal Outlook.

Outcome 14 BIOSECURITY AND EMERGENCY RESPONSE Preparedness to respond to national health emergencies and risks, including through surveillance, regulation, prevention, detection and leadership in national health coordination.

Program 14.1: Health Emergency Planning and Response1 Administered expenses Ordinary annual services (Bill 1/3) 21,398 21,883 485 - Unfunded expenses2 11,159 11,159 - - Special accounts Human Pituitary Hormones 150 150 - - Departmental expenses Departmental appropriation3 24,204 24,266 62 - Expenses not requiring appropriation in the budget year4 2,030 2,030 - - Total for Program 14.1 58,941 59,488 547 - Outcome 14 totals by appropriation type

Administered expenses Ordinary annual services (Bill 1/3) 21,398 21,883 485 - Unfunded expenses2 11,159 11,159 - - Special accounts 150 150 - - Departmental expenses Departmental appropriation3 24,204 24,266 62 - Expenses not requiring appropriation in the budget year4 2,030 2,030 - - Total for Outcome 14 58,941 59,488 547 - 1Budget estimates for this program exclude National Partnership funding paid to state and territory governments by the Treasury as part of the Federal Financial Relations (FFR) framework. 2Unfunded expenses relate to the write-down of the drug stockpile due to expiration, consumption and distribution. 3Departmental appropriation combines Ordinary annual services (Appropriation Bill No 1) and Revenue from independent sources (s31). 4Expenses not requiring appropriation in the Budget year is made up of depreciation expense, amortisation expense, makegood expense and audit fees.

2012-13 2013-14 2014-15 2015-16 $'000 $'000 $'000 $'000 Program 14.1: Health Emergency Planning and Response Changes to administered appropriations Appropriation Bill No 3 Health Protection Fund - transfer of funds from Treasury COAG Reform Fund 481 491 501 510 Price parameter and other adjustments1 4 (37) (58) (80) 485 454 443 430 1See explanation in glossary

2011-12 2012-13 2013-14 2014-15 2015-16 Actual Revised Forward Forward Forward budget year 1 year 2 year 3 $'000 $'000 $'000 $'000 $'000 Program expenses 14.1: Health Emergency Planning and Response1 Annual administered expenses Ordinary annual services 27,792 21,883 20,774 21,206 21,598 Unfunded Expenses 47,416 11,159 16,974 21,161 66,716 Special Account expenses Human Pituitory Hormones Special Account 165 150 150 160 160 Program support 26895 26,296 24,532 24,439 24,624 Total program expenses 102,268 59,488 62,430 66,966 113,098 1Budget estimates for this program exclude National Partnership funding paid to state and territory governments by the Treasury as part of the Federal Financial Relations (FFR) framework. National Partnerships are listed in Section 2 of the 2012-13 Health and Ageing Portfolio Budget Statements under each program. For budget estimates relating to the National Partnership component of the program, please refer to the 2012-13 Mid-Year Economic and Fiscal Outlook.

93 Section 3: Explanatory Tables and Budgeted Financial Statements

3.1 EXPLANATORY TABLES

Estimates of special account flows Special accounts provide a means to set aside and record amounts

A used for specified purposes. Table 3.1.1 shows the expected additions g

(receipts) and reductions (payments) for each account used by the c

department. The corresponding table in the 2012-13 Portfolio Budget A

Statements is Table 3.1.2. d

Table 3.1.1: Estimates of Special Account Flows a

Opening Appropriation Other Payments Closing s

i balance receipts receipts balance m

2012-13 2012-13 2012-13 2012-13 2012-13 e

2011-12 2011-12 2011-12 2011-12 2011-12 S

t Outcome $'000 $'000 $'000 $'000 $'000 a

Australian Childhood 1 5,063 5,693 3,610 9,303 5,063 m

Immunisation Register (A) 6,052 4,595 3,593 9,177 5,063 n

Health and Hospitals 10 - - 719,821 719,821 - —

1,240,85 A Fund Heath Portfolio (A) - - 1,240,852 - g 2

Human Pituitary 14 3,165 - - 150 3,015 n

Hormones (A) 3,315 - - 150 3,165

National Industrial m

Chemicals Notification e 1 7,129 380 14,095 14,737 6,867 and Assessment Scheme (D)2 5,923 427 9,504 8,725 7,129 Office of Gene 1 6,605 7,840 153 7,993 6,605 Technology Regulator (D)2 6,238 7,620 482 7,735 6,605 Safety and Quality in 10 - - - - - Healthcare (A)1 4,444 - 338 4,782 - Services for Other various Entities and Trust 22,964 18,292 15,657 36,779 20,134 Moneys (S) 39,107 8,698 19,624 44,465 22,964 Therapeutic Goods 1 56,509 3,634 124,186 129,634 54,695 Administration (D)2 46,154 7,303 112,158 109,106 56,509 Total Special Accounts 2012-13 Estimate 101,435 35,839 877,522 918,417 96,379 Total Special Accounts 1,386,55 1,424,99 2011-12 Actual 111,233 28,643 101,435 1 2 (A) = Administered; (D) = Departmental; (S) = Special Public Money.

1This special account has been repealed. The operations previously conducted through this special account are now part of the Australian Commission on Safety and Quality in Health Care. 2Consistent with Note 26 of the 2011-12 Annual Report, the estimates exclude GST impacts.

3.2 BUDGETED FINANCIAL STATEMENTS

Departmental The departmental budgeted financial statements include the Department of Health and Ageing, the Therapeutic Goods Administration (TGA), the Office of Gene Technology Regulator (OGTR), and the National Industrial Chemicals Notification and Assessments Scheme (NICNAS).

Comprehensive Income Statement The department is anticipating a break-even position net of unfunded depreciation for the current and forward years.

New measures are listed in Table 1.2 and other variations since Budget 2012-13 are provided for in the variation tables for each outcome and the cross outcome variations in Table 2. The net increase in appropriation revenue estimates primarily relates to new Government decisions and the transfer from capital to operational funding for the acquisition of the grant management system in relation to the ‘Health and Ageing Portfolio – administrative efficiencies’ measure in the 2011- 12 Budget. This was partially offset by a reduction in funding due to the Government’s requirement for additional administrative savings.

Revenues from external sources primarily relate to the cost recovery operations of TGA, Health Core and NICNAS.

Under the Net Cash Resourcing framework, depreciation and amortisation expenses ceased to be funded from 2010-11 and have been replaced with the Departmental Capital Budget.

Balance Sheet Changes to asset and liability estimates since the 2012-13 Budget are largely driven by the flow-on effects of the 2011-12 actuals. Estimated non financial asset (NFA) purchases have been further reduced as a result of the conversion of departmental capital to operational expenditure outlined above.

Cash Flow Cash flows are consistent with projected income and expense, capital injections from Government and investments in property, plant and equipment.

Table 3.2.1: Budgeted Departmental Comprehensive Income Statement (showing net cost of services)

Actual Revised Forward Forward Forward budget estimate estimate estimate 2011-12 2012-13 2013-14 2014-15 2015-16 $'000 $'000 $'000 $'000 $'000

EXPENSES Employee benefits 581,106 590,886 598,882 610,176 611,243 Supplier 233,498 189,827 156,457 128,753 130,482 Depreciation and amortisation 21,610 47,162 57,164 57,304 58,054 Write-down and impairment of assets 964 - - - - Total expenses 837,178 827,875 812,503 796,233 799,779 LESS: OWN-SOURCE INCOME Revenue Sale of goods and rendering of services 139,425 152,901 157,587 160,788 162,194 Interest - - 2,680 2,700 2,700 Other revenue 29,665 7,745 2,158 2,195 2,200 Total revenue 169,090 160,646 162,425 165,683 167,094 Gains Sale of assets - - - - - Other gains 820 846 846 846 846 Total gains 820 846 846 846 846 Total own-source income 169,910 161,492 163,271 166,529 167,940 Net cost of (contribution by) services 667,268 666,383 649,232 629,704 631,839 Revenue from Government 636,121 623,162 596,573 577,160 579,295 Surplus (Deficit) (31,147) (43,221) (52,659) (52,544) (52,544) Surplus (Deficit) attributable to the Australian Government (31,147) (43,221) (52,659) (52,544) (52,544)

OTHER COMPREHENSIVE INCOME Changes in asset revaluation reserves 2,550 - - - - Total other comprehensive income 2,550 - - - - Total comprehensive income attributable to the Australian Government (28,597) (43,221) (52,659) (52,544) (52,544)

Table 3.2.1: Budgeted Departmental Comprehensive Income Statement (showing net cost of services) (cont.)

Note: Reconciliation of comprehensive income attributable to the agency

2011-12 2012-13 2013-14 2014-15 2015-16

$'000 $'000 $'000 $'000 $'000

Total comprehensive income (loss) attributable to the (52,659 Australian Government (28,597) (43,221) ) (52,544) (52,544)

plus non-appropriated expenses

depreciation and amortisation

expenses 18,344 43,221 52,659 52,544 52,544 Total comprehensive income (loss) attributable to the agency (10,253) - - - -

Table 3.2.2: Budgeted Departmental Balance Sheet (as at 30 June)

Actual Revised Forward Forward Forward budget estimate estimate estimate 2011-12 2012-13 2013-14 2014-15 2015-16 $'000 $'000 $'000 $'000 $'000 ASSETS Financial assets Cash and cash equivalents 7,325 6,999 7,042 6,961 6,952 Receivables 286,206 236,617 235,142 246,844 243,792 Total financial assets 293,531 243,616 242,184 253,805 250,744 Non-financial assets Land and buildings 80,408 75,952 70,233 67,941 67,233 Property, plant and equipment 20,987 39,579 41,831 31,090 25,199 Intangibles 121,161 132,237 122,704 104,906 90,894 Inventories 162 162 162 162 162 Other 8,156 7,938 7,938 7,938 7,938 Total non-financial assets 230,874 255,868 242,868 212,037 191,426 Total assets 524,405 499,484 485,052 465,842 442,170 LIABILITIES Payables Suppliers 93,539 92,491 92,509 92,509 92,509 Other payables 52,019 46,501 44,382 43,080 43,080 Total payables 145,558 138,992 136,891 135,589 135,589 Provisions Employees 161,671 156,942 161,665 166,783 167,466 Other provisions 21,392 27,191 33,024 38,861 38,861 Total provisions 183,063 184,133 194,689 205,644 206,327 Total liabilities 328,621 323,125 331,580 341,233 341,916 Net Assets 195,784 176,359 153,472 124,609 100,254 EQUITY Contributed equity 205,569 229,365 259,137 282,818 311,007 Reserves 14,088 14,088 14,088 14,088 14,088 Retained surpluses or (23,873) (67,094) (119,753) (172,297) (224,841) accumulated deficits Total equity 195,784 176,359 153,472 124,609 100,254

Table 3.2.3: Departmental Statement of Changes in Equity — summary of movement (2012-13)

Retained Asset Other Contributed Total earnings revaluation reserves equity/ equity reserve capital $'000 $'000 $'000 $'000 $'000 Opening balance as at 1 July 2012 Balance carried forward from previous period (23,873) 14,088 - 205,569 195,784 Net operating result (43,221) - - - (43,221) Appropriation (equity injection) - - - 15,812 15,812 Capital budget - Bill 1 (DCB) - - - 7,984 7,984 Estimated closing balance as at 30 June 2013 (67,094) 14,088 - 229,365 176,359

DCB = Departmental Capital Budgets.

Table 3.2.4: Budgeted Departmental Statement of Cash Flows

Actual Revised Forward Forward Forward budget estimate estimate estimate 2011-12 2012-13 2013-14 2014-15 2015-16 $'000 $'000 $'000 $'000 $'000 OPERATING ACTIVITIES Cash received Goods and services 138,992 154,180 158,420 160,113 162,194 Appropriations 693,599 715,311 667,743 632,937 651,008 Interest - - 2,680 2,700 2,700 Net GST received 28,907 26,019 21,811 17,912 19,154 Other cash received 19,674 7,636 4,912 5,717 4,986 Total cash received 881,172 903,146 855,566 819,379 840,042 Cash used Employees 561,766 598,615 597,159 608,058 610,560 Suppliers 209,186 182,472 151,633 123,894 132,371 Net GST paid 28,420 26,019 21,811 17,912 19,154 Cash to the Official Public Account 72,852 77,112 70,528 66,804 68,712 Total cash used 872,224 884,218 841,131 816,668 830,797 Net cash from (or used by) operating activities 8,948 18,928 14,435 2,711 9,245 INVESTING ACTIVITIES Cash used Purchase of property, plant and equipment 77,893 72,374 44,164 26,473 37,443 Total cash used 77,893 72,374 44,164 26,473 37,443 Net cash from (or used by) investing activities (77,893) (72,374) (44,164) (26,473) (37,443) FINANCING ACTIVITIES Cash received Appropriations - contributed equity 70,603 53,120 29,772 23,681 28,189 Total cash received 70,603 53,120 29,772 23,681 28,189 Net cash from (or used by) financing activities 70,603 53,120 29,772 23,681 28,189 Net increase (or decrease) in cash held 1,658 (326) 43 (81) (9) Cash and cash equivalents at

the beginning of the reporting period 5,667 7,325 6,999 7,042 6,961 Cash and cash equivalents at the end of the reporting period 7,325 6,999 7,042 6,961 6,952

Table 3.2.5: Departmental Capital Budget Statement

Actual Revised Forward Forward Forward budget estimate estimate estimate 2011-12 2012-13 2013-14 2014-15 2015-16 $'000 $'000 $'000 $'000 $'000 CAPITAL APPROPRIATIONS Capital budget - Bill 1 (DCB)1 9,942 7,984 3,595 8,515 9,023 Equity injections - Bill 2 15,459 45,136 26,177 15,166 19,166 Total capital appropriations 25,401 53,120 29,772 23,681 28,189

Total new capital appropriations represented by: Purchase of non-financial assets 25,401 53,120 29,772 23,681 28,189 Other - - - - - Total items 25,401 53,120 29,772 23,681 28,189 PURCHASE OF NON-FINANCIAL ASSETS Funded by capital appropriations 58,441 57,604 36,292 12,045 19,166 Funded by capital appropriation - DCB1 11,133 7,984 3,595 8,515 9,023 Funded internally from Departmental resources2 8,319 6,786 4,277 5,913 9,254 Total acquisitions of non-financial assets 77,893 72,374 44,164 26,473 37,443

RECONCILIATION OF CASH USED TO ACQUIRE ASSETS TO ASSET MOVEMENT TABLE Total purchases 77,893 72,374 44,164 26,473 37,443 Total cash used to acquire assets 77,893 72,374 44,164 26,473 37,443

1DCB = Departmental Capital Budget. 2Includes the following sources of funding: - annual and prior year appropriations; - donations and contributions; - gifts; - finance leases; - internally developed assets; - section 31 FMA Act relevant agency receipts (for FMA agencies only); and - proceeds from the sale of assets.

Table 3.2.6: Statement of Asset Movements (2012-13)

Land Property Intangibles Total & plant & buildings equipment $'000 $'000 $'000 $'000 As at 1 July 2012 Gross book value 113,980 28,972 193,927 336,879 Accumulated depreciation/amortisation and impairment 33,572 7,985 72,766 114,323 Opening net book balance 80,408 20,987 121,161 222,556 CAPITAL ASSET ADDITIONS Estimated expenditure on new or replacement assets By purchase 4,090 36,061 32,223 72,374 Sub-total 4,090 36,061 32,223 72,374 Other movements Depreciation/amortisation expense 8,546 17,469 21,147 47,162 As at 30 June 2013 Gross book value 118,070 65,033 226,150 409,253 Accumulated depreciation/amortisation and impairment 42,118 25,454 93,913 161,485 Closing net book balance 75,952 39,579 132,237 247,768

Schedule of administered activity Income Statement

Revenue forecasts have remained stable from the 2012-13 Budget estimates. The 2012-13 expense forecast has a net increase of $633 million to $51,031 million from the 2012-13 Budget estimates (refer Table 3.2.7 Schedule of budgeted income and expenses administered on behalf of the government). The increase in estimated expenses is predominately due to updated estimates for special appropriations. The resource summaries for each outcome provides for variances between Budget and revised estimates by program and appropriation source. Schedule of budgeted assets and liabilities

The schedule of budgeted assets and liabilities has been updated to include the 2011-12 actuals.

Table 3.2.7: Schedule of Budgeted Income and Expenses Administered on Behalf of Government

Actual Budget Forward Forward Forward estimate estimate estimate estimate 2011-12 2012-13 2013-14 2014-15 2015-16 $'000 $'000 $'000 $'000 $'000 INCOME ADMINISTERED ON BEHALF OF GOVERNMENT Revenue Taxation Other taxes, fees and fines 15,209 27,736 27,736 27,736 27,736 Total taxation 15,209 27,736 27,736 27,736 27,736 Non-taxation Interest 7,409 19,293 31,241 38,192 40,121 Other sources of non-

taxation revenues 2,185,264 1,734,771 1,654,507 1,584,995 1,675,381 Total non-taxation 2,192,673 1,754,064 1,685,748 1,623,187 1,715,502 Total revenues

administered on behalf of Government 2,207,882 1,781,800 1,713,484 1,650,923 1,743,238 Total income administered on behalf of Government 2,207,882 1,781,800 1,713,484 1,650,923 1,743,238 EXPENSES ADMINISTERED ON BEHALF OF GOVERNMENT Suppliers 454,868 176,521 179,749 168,595 171,831 Grants 6,138,040 7,669,012 8,249,731 8,371,215 8,812,097 10,584,58 11,385,79 Subsidies 9,047,259 9,329,795 9,932,373 6 8 33,572,57 33,737,25 34,563,24 37,057,72 39,252,99 Personal benefits 4 7 4 0 6 Write down and impairment of assets 48,673 11,159 16,974 21,161 66,716 CAC Act body payment item 37,325 34,632 34,523 34,743 34,979 Other expenses 405,447 71,716 90,802 38,228 21,409 Total expenses administered 49,704,18 51,030,09 53,067,39 56,276,24 59,745,82 on behalf of Government 6 2 6 8 6

Table 3.2.8: Schedule of Budgeted Assets and Liabilities Administered on Behalf of Government (as at 30 June)

Actual Budget Forward Forward Forward estimate estimate estimate estimate 2011-12 2012-13 2013-14 2014-15 2015-16 $'000 $'000 $'000 $'000 $'000 ASSETS ADMINISTERED ON BEHALF OF GOVERNMENT Financial assets Cash and cash equivalents 68,683 68,683 68,683 68,683 68,683 Receivables 401,951 498,386 571,868 575,645 565,086 Investments 217,596 217,596 217,596 217,596 217,596 Total financial assets 688,230 784,665 858,147 861,924 851,365 Non-financial assets Land and buildings 21,292 21,292 21,292 21,292 21,292 Inventories 208,035 233,069 216,095 194,934 128,218 Intangibles 91,544 91,544 91,544 91,544 91,544 Total non-financial assets 320,871 345,905 328,931 307,770 241,054 Total assets administered on behalf of Government 1,009,101 1,130,570 1,187,078 1,169,694 1,092,419 LIABILITIES ADMINISTERED ON BEHALF OF GOVERNMENT Payables and Provisions Suppliers 15,636 15,636 15,636 15,636 15,636 Subsidies 863,865 562,549 561,263 559,977 558,691 Personal benefits payable 2,303,806 2,300,635 2,370,163 2,458,327 2,590,703 Grants 508,312 529,438 556,109 578,501 606,216 Other payables 26,791 26,791 26,791 26,791 26,791 Total payables 3,718,410 3,435,049 3,529,962 3,639,232 3,798,037 Total liabilities administered on behalf of Government 3,718,410 3,435,049 3,529,962 3,639,232 3,798,037

Table 3.2.9: Schedule of Budgeted Administered Cash Flows

Actual Budget Forward Forward Forward estimate estimate estimate estimate 2011-12 2012-13 2013-14 2014-15 2015-16 $'000 $'000 $'000 $'000 $'000 OPERATING ACTIVITIES Cash received Interest 2,526 6,648 9,682 11,063 12,154 Taxes 15,209 27,736 27,736 27,736 27,736 Net GST received 350,892 337,119 316,728 316,728 316,728 Other 2,205,473 1,718,237 1,659,370 1,598,668 1,687,297 Total cash received 2,574,100 2,089,740 2,013,516 1,954,195 2,043,915 Cash used Grant payments 6,519,388 6,959,316 7,663,948 7,893,020 8,251,230 Subsidies paid 8,923,447 9,331,081 9,933,659 10,585,872 11,387,084 Personal benefits 33,282,418 33,743,152 34,496,610 36,957,912 39,166,330 Suppliers 69,374 212,714 179,749 168,595 171,831 CAC Act payment item 37,325 34,632 34,523 34,743 34,979 Net GST paid 414,595 337,119 316,728 316,728 316,728 Other 382,444 689,011 558,942 470,272 532,974 Total cash used 49,628,991 51,307,025 53,184,159 56,427,142 59,861,156 Net cash from (or used (47,054,891) (49,217,285) (51,170,643) (54,472,947) (57,817,241) by) operating activities INVESTING ACTIVITIES Cash received Repayment of advances 6,934 32,000 33,287 32,246 31,512 Transfers to other entities 26,931 - - - - Total cash received 33,865 32,000 33,287 32,246 31,512 Cash used Advances made 46,706 147,995 170,000 66,857 37,500 Purchase of intangible assets 91,544 - - - - Total cash used 138,250 147,995 170,000 66,857 37,500 Net cash from (or used (104,385) (115,995) (136,713) (34,611) (5,988) by) investing activities

Table 3.2.9: Schedule of Budgeted Administered Cash Flows (cont.)

Actual Budget Forward Forward Forward

estimate estimate estimate estimate

2011-12 2012-13 2013-14 2014-15 2015-16

$'000 $'000 $'000 $'000 $'000

FINANCING ACTIVITIES

Cash received

Administered GST

Appropriations 414,595 337,119 316,728 316,728 316,728

Total cash received 414,595 337,119 316,728 316,728 316,728

Cash used

Return of GST 348,276 337,119 316,728 316,728 316,728

Total cash used 348,276 337,119 316,728 316,728 316,728

Net cash from (or used by)

financing activities 66,319 - - - -

Net increase (or decrease) in cash held (47,092,957) (49,333,280) (51,307,356) (54,507,558) (57,823,229)

Cash at beginning of the

reporting period 163,361 68,683 68,683 68,683 68,683

Cash from Official Public

Account for:

52,457,05 - appropriations 47,862,911 50,361,747 55,706,861 59,048,816 1

- special accounts 22,164 - - - -

- capital injections 117,391 36,193 - - -

Cash to the Official Public

Account for:

- other 1,004,187 1,064,660 1,149,695 1,199,303 1,225,587

Cash at end of reporting

period 68,683 68,683 68,683 68,683 68,683

Table 3.2.10: Schedule of Administered Capital Budget

Actual Budget Forward Forward Forward estimate estimate estimate estimate 2011-12 2012-13 2013-14 2014-15 2015-16 $'000 $'000 $'000 $'000 $'000

CAPITAL APPROPRIATIONS Administered assets 117,391 36,193 - - - Total loans - - - - - Total capital appropriations 117,391 36,193 - - - Total new capital appropriations represented by: Purchase of non-financial assets 117,391 36,193 - - - Other - - - - - Total items 117,391 36,193 - - - ACQUISITION OF NON- FINANCIAL ASSETS Funded by capital appropriations 117,391 36,193 - - - Total acquisition of non-financial assets 117,391 36,193 - - -

Table 3.2.11: Statement of Administered Asset Movements (2012-13)

Other Land Buildings Intangibles non- Total financial assets $'000 $'000 $'000 $'000 $'000 As at 1 July 2012 Gross book value 1,760 20,365 91,544 208,035 321,704 Accumulated depreciation/amortisation and impairment - 833 - - 833 Opening net book balance 1,760 19,532 91,544 208,035 320,871 CAPITAL ASSET ADDITIONS Estimated expenditure on new or replacement assets By purchase or internally developed - - - 36,193 36,193 Sub-total - - - 36,193 36,193 Other movements Depreciation/amortisation expense - - - - - Disposals - - - - - Writedowns - - - (11,159) (11,159) As at 30 June 2013 Gross book value 1,760 20,365 91,544 233,069 346,738 Accumulated depreciation/amortisation and impairment - 833 - - 833 Closing net book balance 1,760 19,532 91,544 233,069 345,905

111 National Blood Authority

National Blood Authority 115 Section 1: Agency Overview and Resources 115 1.1 Strategic Direction...... 115 1.2 Agency Resource Statement...... 115 1.3 Agency Measures Table...... 117 1.4 Additional Estimates and Variations...... 117 1.5 Breakdown of Additional Estimates by Appropriation Bill 118 Section 2: Revisions to Agency Resources and Planned Performance 121 2.1 Resources and Performance Information...... 121 Section 3: Explanatory Tables and Budgeted Financial Statements 123 3.1 Explanatory Tables...... 123 3.2 Budgeted Financial Statements...... 124

112 NATIONAL BLOOD AUTHORITY

The Australian Government, through the National Blood Authority (NBA), aims to ensure that Australia’s blood supply is secure and well managed. The NBA is an independent statutory agency, established by the Australian Government and state and territory governments, to coordinate policy, governance, funding and management of the blood banking and plasma product sector in Australia.

The role and functions of the NBA are set out in the National Blood Authority Act 2003. The NBA is prescribed as an agency under the Financial Management and Accountability Act 1997.

AGENCY OUTCOMES:

Access to a secure supply of safe and affordable blood products, including through national supply arrangements and Outcome 1 coordination of best practice standards within agreed funding policies under the national blood arrangements.

The Agency Resource Statement details the resourcing for the National Blood Authority at Additional Estimates. Table 1.1 outlines the total resourcing available from all sources for the 2012-13 Budget year, including variations through Appropriation Bills No. 3 and No. 4, special appropriations and special accounts.

Table 1.1: NBA Resource Statement — Additional Estimates

Estimate as Proposed Total Total at budget additional estimate available estimates at AEs appropriation 2012-13 2012-13 2012-13 2011-12 $'000 $'000 $'000 $'000 Ordinary annual services Departmental appropriation Prior year departmental appropriation and opening reserves - - - - Departmental appropriation1,2 6,622 676 7,298 6,240 s31 Relevant agency receipts - - - - Total 6,622 676 7,298 6,240

Administered resources 1 Outcome 1 8,358 - 8,358 7,679 Total 8,358 - 8,358 7,679 Total ordinary annual services 14,980 676 15,656 13,919 3 Other services - Bill 2 Departmental non-operating Equity injections - - - - Total - - - - Total other services - - - -

Total available annual appropriations 14,980 676 15,656 13,919 Total appropriations excluding Special Accounts 14,980 676 15,656 13,919

Special Accounts Opening balance4 198,894 - 198,894 141,901 Appropriation receipts 14,980 676 15,656 12,798 Appropriation receipts - other agencies5 681,848 - 681,848 640,176 Non-appropriation receipts to Special Accounts 421,778 398 422,176 675,790 Total Special Accounts 1,317,500 1,074 1,318,574 1,470,665

Total resourcing 1,332,480 1,750 1,334,230 1,484,584 Less appropriations drawn from annual or special appropriations above and credited to Special Accounts and/or CAC Act bodies through annual appropriations (14,980) (676) (15,656) (12,798) Total net resourcing for NBA 1,317,500 1,074 1,318,574 1,471,786

All figures are GST exclusive. 1Appropriation Bill (No.1 & 3) 2012-13. 2Includes an amount of $1.097m in 2012-13 for the Departmental Capital Budget (refer to Table 3.2.5 for further details). For accounting purposes this amount has been designated as 'contributions by owners'. 3Appropriation Bill (No.2 & 4) 2012-13. 4The estimate at Budget 2012-13 has been revised to reflect the 2011-12 Annual Report. For further information on special accounts see Table 3.1.1. 5Appropriation receipts from the Department of Health and Ageing.

Table 1.2: Agency 2012-13 Measures since Budget

Program 2012-13 2013-14 2014-15 2015-16 $'000 $'000 $'000 $'000 Whole of Government Measures Targeted savings - public service efficiencies Departmental expenses

National Blood Authority 1.1 (23) (20) (20) (20) Total (23) (20) (20) (20)

The following tables detail the changes to the resourcing for the National Blood Authority at Additional Estimates, by outcome. Table 1.3 details the Additional Estimates and variations resulting from new measures since the 2012-13 Budget in Appropriation Bills No.3 and No.4. Table 1.4 details Additional Estimates or variations through other factors, such as parameter adjustments.

Table 1.3: Additional Estimates and Variations to Outcomes from Measures since 2012-13 Budget

2012-13 2013-14 2014-15 2015-16 $'000 $'000 $'000 $'000 Program 1.1: National blood agreement management Changes to departmental appropriations Appropriation Bill No.3 Measure - Targeted savings - public service efficiencies (23) (20) (20) (20) (23) (20) (20) (20)

Table 1.4: Additional Estimates and Variations to Outcomes from other Variations

2012-13 2013-14 2014-15 2015-16 $'000 $'000 $'000 $'000 Program 1.1: National blood agreement management Changes to departmental appropriations Appropriation Bill No.3 Movement of departmental capital budget 700 (700) - - Price parameter adjustments1 - (34) (47) (49) Correction to previous efficiency dividend adjustments1 (1) (1) (1) (1) 699 (735) (48) (50)

1.5 BREAKDOWN OF ADDITIONAL ESTIMATES BY APPROPRIATION BILL

The following table details the Additional Estimates sought for the National Blood Authority through Appropriation Bills No.3.

2012- 2011-12 2012-13 Additional Reduced 13 Available Budget Revised estimates estimates $'000 $'000 $'000 $'000 $'000 Administered Items Outcome 1 National blood agreement management 7,679 8,358 8,358 - - Departmental Items Outcome 1 National blood agreement management 6,240 6,622 7,298 676 - Total Appropriation Bill No. 3 (Administered and Departmental) 13,919 14,980 15,656 676 -

117 Section 2 – Agency Outcomes and Planned Performance

The National Blood Authority works to achieve one outcome specified by government. There have been no changes to the performance information since the 2012-13 Health and Ageing Budget Statements (PBS). Refer to page 493 of the PBS for current performance information.

Table 2.1: Budgeted Expenses and Resources for NBA

2011-12 2012-13 2013-14 2014-15 2015-16 Actuals Revised Forward Forward Forward budget year 1 year 2 year 3 $'000 $'000 $'000 $'000 $'000 Program 1.1: National blood agreement management Administered expenses Ordinary annual services (Appropriation Bill No. 1) 7,679 8,358 - - - to the National Blood Authority Account (7,679) (8,358) - - - to the National Managed Fund (Blood and Blood Products) Special Account - - - - - Special accounts National Blood Authority Account 955,884 1,084,929 1,161,361 1,258,678 1,362,343 National Managed Fund (Blood and Blood Products) Special Account - - - - - Departmental expenses Departmental appropriation1 5,686 6,201 6,135 6,150 6,177 To National Blood Authority Account (5,686) (6,201) (6,135) (6,150) (6,177) Special Account National Blood Authority Account 9,622 10,555 9,877 10,036 9,731 Expenses not requiring appropriation in the budget year2 845 1,046 861 968 894 Operating deficit (surplus) (87) (722) (153) (279) (14) Total for Program 1.1 966,264 1,095,808 1,171,946 1,269,403 1,372,954 Total expenses for Outcome 1 966,264 1,095,808 1,171,946 1,269,403 1,372,954 1Departmental Appropriation combines Ordinary annual services (Appropriation Bill No. 1 & 3) and Revenue from independent sources (s31). 2Expenses not requiring appropriation in the Budget year is made up of depreciation expense, amortisation expense, makegood expense and audit fees.

Section 3: Explanatory Tables and Budgeted Financial Statements

Estimates of special account flows Special accounts provide a means to set aside and record amounts used for specified purposes. Table 3.1.1 shows the expected additions (receipts) and reductions (payments) for each account used by the National Blood Authority. The corresponding table in the 2012-13 PB Statements is Table 3.1.2.

Table 3.1.1: Estimates of Special Account Flows and Balances

Opening Appropriation Other Payments Closing balance receipts receipts balance 2012-13 2012-13 2012-13 2012-13 2012-13 2011-12 2011-12 2011-12 2011-12 2011-12 Outcome $'000 $'000 $'000 $'000 $'000 National Blood Authority 1 191,106 8,358 1,087,084 1,087,141 199,407 1,118,61 1,067,25 132,070 7,679 191,106 Account1 (A) 1 4 National Blood Authority 1 7,481 7,298 4,355 11,874 7,260 Account1 (D) 8,755 5,119 3,611 10,004 7,481 National Managed Fund 1 (Blood and Blood 307 - 12,585 12,585 307 Products) Special Account2, 3 (A) 1,076 - 193,744 194,513 307 Total Special Accounts 2012-13 Estimate 198,894 15,656 1,104,024 1,111,600 206,974 Total Special Accounts 1,315,96 1,271,77 2011-12 actual 141,901 12,798 6 1 198,894

D = Departmental; A = Administered 1National Blood Authority Act 2003 – s21 FMA Act. 2s20 Financial Management Accountability Act 1997. 3In 2010-11, the NBA was granted investment powers for the National Managed Fund Special Account. Payments represent the purchase of investments.

An analysis of the major changes to the NBA’s budgeted financial statements compared to the Portfolio Budget Statement (PBS) is outlined below.

Departmental financial statements Balance Sheet The Departmental Capital Budget appropriation will increase in 2012-13 by $700,000 with a corresponding decrease in 2013-14 as a result of the National Blood Authority’s move to new office premises earlier than previously scheduled.

The value of land and building increases in 2012-13 reflecting the National Blood Authority’s move to new premises. The decline in value over the forward estimates reflects the amortisation of the leasehold improvements.

120 Section 3 Budgeted Financial Statements

Actual Revised Forward Forward Forward budget estimate estimate estimate 2011-12 2012-13 2013-14 2014-15 2015-16 $'000 $'000 $'000 $'000 $'000

EXPENSES Employee benefits 6,776 6,294 6,230 6,372 6,463 Supplier expenses 2,840 3,654 3,609 3,500 3,369 Depreciation and amortisation 751 931 746 853 779 Other 13 - - - - Total expenses 10,380 10,879 10,585 10,725 10,611 LESS: OWN-SOURCE INCOME Revenue Other revenue 3,936 4,354 3,742 3,886 3,554 Total revenue 3,936 4,354 3,742 3,886 3,554 Gains Other 94 115 115 115 115 Total gains 94 115 115 115 115 Total own-source income 4,030 4,469 3,857 4,001 3,669 Net cost of (contribution by) services 6,350 6,410 6,728 6,724 6,942 Revenue from Government 5,686 6,201 6,135 6,150 6,177 Surplus (Deficit) (664) (209) (593) (574) (765) Surplus (Deficit) attributable to the Australian Government (664) (209) (593) (574) (765) OTHER COMPREHENSIVE INCOME Changes in asset revaluation reserves - - - - - Total other comprehensive income - - - - - Total comprehensive income attributable to the Australian Government (664) (209) (593) (574) (765)

Table 3.2.1: Budgeted Departmental Comprehensive Income Statement (showing net cost of services) (cont.)

Note: Reconciliation of comprehensive income attributable to the agency 2011-12 2012-13 2013-14 2014-15 2015-16 $'000 $'000 $'000 $'000 $'000 Total comprehensive income (loss) attributable to the Australian Government (664) (209) (593) (574) (765)

plus non-appropriated expenses depreciation and amortisation expenses 751 931 746 853 779

Total comprehensive income (loss) attributable to the agency 87 722 153 279 14

Actual Revised Forward Forward Forward budget estimate estimate estimate 2011-12 2012-13 2013-14 2014-15 2015-16 $'000 $'000 $'000 $'000 $'000 ASSETS Financial assets Cash and cash equivalents 30 30 30 30 30 Receivables 7,993 7,769 7,936 7,861 7,781 Total financial assets 8,023 7,799 7,966 7,891 7,811 Non-financial assets Land and buildings - 990 790 590 390 Property, plant and equipment 353 548 373 291 279 Intangibles 837 462 274 779 311 Other 87 87 87 87 87 Total non-financial assets 1,277 2,087 1,524 1,747 1,067 Total assets 9,300 9,886 9,490 9,638 8,878 LIABILITIES Payables Suppliers 572 571 572 572 472 Other payables - - - - - Total payables 572 571 572 572 472 Provisions Employees 1,367 1,066 1,147 1,188 1,229 Other provisions - - - - - Total provisions 1,367 1,066 1,147 1,188 1,229 Total liabilities 1,939 1,637 1,719 1,760 1,701 Net Assets 7,361 8,249 7,771 7,878 7,177 EQUITY Contributed equity 1,366 2,463 2,578 3,259 3,323 Reserves 206 206 206 206 206 Retained surpluses or accumulated deficits 5,789 5,580 4,987 4,413 3,648 Total equity 7,361 8,249 7,771 7,878 7,177

Retained Asset Other Contributed Total earnings revaluation reserves equity/ equity reserve capital $'000 $'000 $'000 $'000 $'000 Opening balance as at 1 July 2012 Balance carried forward from previous period 5,789 206 - 1,366 7,361 Surplus (deficit) for the period (209) - - - (209) Appropriation (equity injection) - - - - - Capital budget - Bill 1 (DCB) - - - 1,097 1,097 Estimated closing balance as at 30 June 2013 5,580 206 - 2,463 8,249

DCB = Departmental Capital Budget.

Actual Revised Forward Forward Forward budget estimate estimate estimate 2011-12 2012-13 2013-14 2014-15 2015-16 $'000 $'000 $'000 $'000 $'000 OPERATING ACTIVITIES Cash received Appropriations 4,940 6,201 6,135 6,150 6,177 Net GST received 295 370 370 370 370 Other cash received 3,314 4,354 3,745 3,886 3,554 Cash from the Official Public Account 1,267 221 - 78 83 Total cash received 9,816 11,146 10,250 10,484 10,184 Cash used Employees 6,298 6,862 6,415 6,331 6,422 Suppliers 3,421 3,271 3,229 3,388 3,357 Net GST paid - 369 370 370 370 Cash to the Official Public Account - - 168 - - Total cash used 9,719 10,502 10,182 10,089 10,149 Net cash from (or used by) operating activities 97 644 68 395 35 INVESTING ACTIVITIES Cash received Proceeds from sales of property, plant, equipment and intangibles 2 - - - - Total cash received 2 - - - - Cash used Purchase of property, plant and equipment 284 1,741 183 1,076 99 Total cash used 284 1,741 183 1,076 99 Net cash from (or used by) investing activities (282) (1,741) (183) (1,076) (99) FINANCING ACTIVITIES Cash received Capital budget - Bill 1 (DCB) 179 1,097 115 681 64 Total cash received 179 1,097 115 681 64 Net cash from (or used by) financing activities 179 1,097 115 681 64 Net increase (or decrease) in cash held (6) - - - - Cash and cash equivalents at the beginning of the reporting period 36 30 30 30 30 Cash and cash equivalents at the end of the reporting period 30 30 30 30 30

Actual Revised Forward Forward Forward budget estimate estimate estimate 2011-12 2012-13 2013-14 2014-15 2015-16 $'000 $'000 $'000 $'000 $'000 CAPITAL APPROPRIATIONS Capital budget - Bill 1 (DCB) 554 1,097 115 681 64 Total capital appropriations 554 1,097 115 681 64 Total new capital appropriations represented by: Purchase of non-financial assets 284 1,097 115 681 64 Other 270 - - - - Total items 554 1,097 115 681 64 PURCHASE OF NON-FINANCIAL ASSETS Funded by capital appropriation - DCB 179 1,097 115 681 64 Funded internally from Departmental resources 105 644 68 395 35 Total acquisitions of non-financial assets 284 1,741 183 1,076 99 RECONCILIATION OF CASH USED TO ACQUIRE ASSETS TO ASSET MOVEMENT TABLE Total purchases 284 1,741 183 1,076 99 Total cash used to acquire assets 284 1,741 183 1,076 99

Other Buildings property, Intangibles Total plant & equipment $'000 $'000 $'000 $'000 As at 1 July 2012 Gross book value 157 601 3,216 3,974 Accumulated depreciation/amortisation and impairment 157 248 2,379 2,784 Opening net book balance - 353 837 1,190 CAPITAL ASSET ADDITIONS Estimated expenditure on new or replacement assets By purchase - appropriation ordinary annual services 630 251 216 1,097 By purchase - internal departmental resources 370 147 127 644 Sub-total 1,000 398 343 1,741 Other movements Depreciation/amortisation expense 10 203 718 931 Disposals - - - - Other - - - - as at 30 June 2013 Gross book value 1,157 999 3,559 5,715 Accumulated depreciation/amortisation and impairment 167 451 3,097 3,715 Closing net book balance 990 548 462 2,000

Actual Budget Forward Forward Forward estimate estimate estimate estimate 2011-12 2012-13 2013-14 2014-15 2015-16 $'000 $'000 $'000 $'000 $'000 INCOME ADMINISTERED ON BEHALF OF GOVERNMENT Non-taxation Other sources of non-taxation revenues 1,034,910 1,092,288 1,175,462 1,273,646 1,378,120 Total non-taxation 1,034,910 1,092,288 1,175,462 1,273,646 1,378,120 Total revenues administered on behalf of Government 1,034,910 1,092,288 1,175,462 1,273,646 1,378,120 Total income administered on behalf of Government 1,034,910 1,092,288 1,175,462 1,273,646 1,378,120 EXPENSES ADMINISTERED ON BEHALF OF GOVERNMENT Suppliers 947,820 1,084,814 1,161,262 1,258,678 1,362,343 Depreciation and amortisation 291 115 99 - - Grants - other 7,773 - - - - Total expenses administered on behalf of Government 955,884 1,084,929 1,161,361 1,258,678 1,362,343

Actual Budget Forward Forward Forward estimate estimate estimate estimate 2011-12 2012-13 2013-14 2014-15 2015-16 $'000 $'000 $'000 $'000 $'000 ASSETS ADMINISTERED ON BEHALF OF GOVERNMENT Financial assets Cash and cash equivalents 5,340 6,081 6,862 7,685 8,553 Receivables 16,969 17,609 18,367 19,203 20,039 Investments 88,335 101,068 114,488 128,633 143,542 Total financial assets 110,644 124,758 139,717 155,521 172,134 Non-financial assets Property, plant and equipment 404 404 404 404 404 Intangibles 1,061 946 847 847 847 Inventories 60,173 60,173 60,173 60,173 60,173 Other 76,068 76,068 76,068 76,068 76,068 Total non-financial assets 137,706 137,591 137,492 137,492 137,492 Total assets administered on behalf of Government 248,350 262,349 277,209 293,013 309,626 LIABILITIES ADMINISTERED ON BEHALF OF GOVERNMENT Payables Suppliers 61,551 68,134 75,703 84,061 92,419 Total payables 61,551 68,134 75,703 84,061 92,419 Total liabilities administered on behalf of Government 61,551 68,134 75,703 84,061 92,419

Actual Budget Forward Forward Forward estimate estimate estimate estimate 2011-12 2012-13 2013-14 2014-15 2015-16 $'000 $'000 $'000 $'000 $'000 OPERATING ACTIVITIES Cash received Net GST received 94,517 108,833 117,694 127,575 127,575 Other 395,254 410,440 441,774 478,691 517,965 Total cash received 489,771 519,273 559,468 606,266 645,540 Cash used Suppliers 969,991 1,072,230 1,153,693 1,250,320 1,353,985 Grant payments - - - - - Cash to the Offical Public Account 58,267 14,301 6,810 7,522 7,522 Net GST paid 96,978 109,474 118,452 128,411 128,411 Other - - - - - Total cash used 1,125,236 1,196,005 1,278,955 1,386,253 1,489,918 Net cash from (or used by) (635,465 (676,732 (719,487 (779,987 (844,378 operating activities ) ) ) ) ) INVESTING ACTIVITIES Cash received Proceeds from Sale of Investments 46,535 - - - - Total cash received 46,535 - - - - Cash used Purchase of Investments 94,742 12,733 13,420 14,145 14,909 Total cash used 94,742 12,733 13,420 14,145 14,909 Net cash from (or used by) investing activities (48,207) (12,733) (13,420) (14,145) (14,909) Net increase (or decrease) (683,672 (689,465 (732,907 (794,132 (859,287 in cash held ) ) ) ) ) Cash at beginning of reporting period 41,157 5,340 6,081 6,862 7,685 Cash from Official Public Account for: - special accounts 640,176 681,848 733,688 794,955 860,155 - appropriations 7,679 8,358 - - - Cash at end of reporting period 5,340 6,081 6,862 7,685 8,553

130 National Health Performance Authority

National Health Performance Authority 137 Section 1: Agency Overview and Resources 137 1.1 Strategic Direction...... 137 1.2 Agency Resource Statement...... 138 1.3 Agency Measures table...... 139 1.4 Additional Estimates and Variations...... 139 1.5 Breakdown of Additional Estimates by Appropriation Bill 140 Section 2: Revisions to Agency Resources and Planned Performance 141 2.1 Resources and Performance Information...... 141 Section 3: Explanatory Tables and Budgeted Financial Statements 143 3.1 Explanatory Tables...... 143 3.2 Budgeted Financial Statements...... 143

NATIONAL HEALTH PERFORMANCE AUTHORITY

The Commonwealth, states and territories, through the 2011 National Health Reform Agreement, agreed to work in partnership to introduce a wide ranging series of structural reforms to the health system aimed at improving health outcomes for all Australians and ensuring the long- term sustainability of the Australian health system. These reforms include the introduction of independent monitoring and reporting of the performance of important elements of the Australian health care system.

The National Health Performance Authority (Performance Authority) will prepare high quality, locally relevant and nationally consistent reports on the performance of Local Hospital Networks, public hospitals, private hospitals, primary health care organisations, and other bodies or organisations that provide health care services. This transparent public reporting across a range of performance standards and indicators at a local level will increase accountability and drive continuous improvement in delivery of these health care services.

The Performance Authority is established under the National Health Reform Act 2011 and is a prescribed agency under the Financial Management and Accountability Act 1997. In meeting its statutory obligations to report on health system performance, the Performance Authority will operate independently of both the Commonwealth and state and territory governments. The costs associated with the establishment and ongoing operations of the Performance Authority will be borne by the Commonwealth.

AGENCY OUTCOMES:

Outcome 1: Contribute to transparent and accountable health care services in Australia, including through the provision of independent performance monitoring and reporting; the formulation of performance indicators; and conducting and evaluating research.

The Agency Resource Statement details the resourcing for the Performance Authority at Additional Estimates. Table 1.1 outlines the total resourcing available from all sources for the 2012-13 Budget year, including variations through Appropriation Bills No. 3 and No. 4, special appropriations and special accounts.

Table 1.1: Performance Authority Resource Statement — Additional Estimates for 2012-13

Estimate as Proposed Total Total at budget additional estimate available estimates at AEs appropriation 2012-13 2012-13 2012-13 2011-12 $'000 $'000 $'000 $'000 Ordinary annual services Departmental appropriation Prior year departmental appropriation and opening reserves - - - - Departmental appropriation1,2,3 - 12,148 12,148 - s31 Relevant agency receipts - 1,501 1,501 - Total - 13,649 13,649 - Administered resources2 Outcome 11 17,803 17,803 - Total - 17,803 17,803 - Total ordinary annual services - 31,452 31,452 - Other services - Bill 24 Departmental non-operating Equity injections - - - - Previous years' programs - - - - Total - - - - Total other services - - - - Total available annual appropriations - 31,452 31,452 - Total net resourcing for the Performance Authority - 31,452 31,452 -

All figures are GST exclusive. 1The proposed additional estimates 2012-13 reflect the transfer of funds from the Department to the Performance Authority under s32 of the FMA Act on 22 November 2012. In the 2012-13 Portfolio Budget Statements, agency resourcing for the Performance Authority was captured under the Department of Health and Ageing Outcome 13, Program 13.3. 2Appropriation Bill (No.1 & 3) 2012-13. 3Includes an amount of $0.758m in 2012-13 for the Departmental Capital Budget (refer to Table 3.2.5 for further details). For accounting purposes this amount has been designated as ‘contributions by owners’. 4Appropriation Bill (No.2 & 4) 2012-13.

Table 1.2: Agency 2012-13 Measures since Budget This table is not applicable to the Performance Authority.

The following tables detail the changes to the resourcing for the Performance Authority at Additional Estimates, by outcome. Table 1.3 details the Additional Estimates and variations resulting from new measures since the 2012-13 Budget in Appropriation Bills No. 3 and No. 4. Table 1.4 details Additional Estimates or variations through other factors, such as parameter adjustments.

Table 1.3: Additional Estimates and Variations to Outcomes from Measures since 2012-13 Budget This table is not applicable to the Performance Authority.

Table 1.4: Additional Estimates and Variations to Outcomes from other Variations

2012-13 2013-14 2014-15 2015-16 Program 1.1: Health system performance reporting $'000 $'000 $'000 $'000 Changes to administered appropriations Appropriation Bill No.3 Price parameter adjustments1 - (44) (67) (92) Section 32 transfer from the Department of Health and Ageing 17,803 22,224 22,850 23,371 17,80 3 22,180 22,783 23,279 Changes to departmental appropriations Appropriation Bill No.3 Price parameter adjustments1 - (56) (77) (89) Section 32 transfer from the Department of Health and Ageing 12,148 11,537 11,341 11,476 12,14 8 11,481 11,264 11,387 1See explanation in glossary.

1.5 Breakdown of Additional Estimates by Appropriation Bill The following tables detail the Additional Estimates sought for the Performance Authority through Appropriation Bills No. 3 and No. 4.

2011-12 2012-13 2012-13 Additional Reduced Available Budget Revised estimates1 estimates $'000 $'000 $'000 $'000 $'000 Administered Items Outcome 1 Health system performance reporting - - 17,803 17,803 - Departmental Items Outcome 1 Health system performance reporting - - 12,148 12,148 - Total Appropriation Bill No. 3 - - 29,951 29,951 - (Administered and Departmental)

1The additional estimates reflect the transfer of funds on 22 November 2012, from the Department of Health and Ageing under s32 of the FMA Act for the funding provided to the Department of Health and Ageing through the 2010-11 Budget measure - National Health and Hospitals Network - National Performance Authority pending the establishment of the Performance Authority. In the 2012-13 Portfolio Budget Statements, agency resourcing for the Performance Authority was captured under the Department of Health and Ageing Outcome 13, Program 13.3.

135 Section 2 – Revisions to Outcome and Planned Performance

The Performance Authority works to achieve one outcome specified by government. There have been no changes to the performance information since the 2012-13 Health and Ageing Budget Statements (PBS). Refer to page 541 of the PBS for current performance information. The Performance Authority administered appropriation provides funds to cover the costs directly associated with providing health performance information to the community.

Table 2.1.2: Budgeted Expenses and Resources for Performance Authority

2011-12 2012-13 2013-14 2014-15 2015-16 Actuals Revised Forward Forward Forward budget year 1 year 2 year 3 $'000 $'000 $'000 $'000 $'000 Program 1.1: Health system performance reporting Administered expenses Ordinary annual services (Appropriation Bill No. 1) - 17,803 22,180 22,783 23,279 Expenses not requiring appropriation1 - 2,785 - - - Departmental expenses Departmental appropriation2 - 11,454 11,509 11,292 11,415 Expenses not requiring appropriation in the budget year3 - 173 359 384 409 Operating deficit (surplus) - (64) (128) (128) (128) Total for Program 1.1 - 32,151 33,920 34,331 34,975 Total expenses for Outcome 1 - 32,151 33,920 34,331 34,975 1Expenses not requiring appropriation in the Budget year is made up of resources received free of charge. 2Departmental appropriation combines Ordinary annual services (Appropriation Bill No. 1 & 3) and Revenue from independent sources (s31). 3Expenses not requiring appropriation in the Budget year is made up of depreciation expense, amortisation expense, makegood expense and audit fees.

Section 3: Explanatory Tables and Budgeted Financial Statements

Table 3.1.1: Estimates of special account flows This table is not applicable to the Performance Authority.

The Performance Authority did not have budgeted financial statements in the 2012-13 Portfolio Budget Statements, with financial information associated with its operations included in Outcome 13, Program 13.3 of the Department of Health and Ageing statements. The Performance Authority received appropriation funding under a Section 32 transfer of appropriation on the 22 November 2012. The Performance Authority's financial position is consistent with the transferred amount.

Actual Revised Forward Forward Forward budget estimate estimate estimate 2011-12 2012-13 2013-14 2014-15 2015-16 $'000 $'000 $'000 $'000 $'000 EXPENSES Employee benefits - 6,497 7,572 7,799 8,033 Supplier expenses - 4,905 3,821 3,377 3,266 Depreciation and amortisation - 161 347 372 397 Total expenses - 11,563 11,740 11,548 11,696 LESS: OWN-SOURCE INCOME Revenue Other revenue - 64 128 128 128 Total revenue - 64 128 128 128 Gains Other - 12 12 12 12 Total gains - 12 12 12 12 Total own-source income - 76 140 140 140 Net cost of (contribution by) services - 11,487 11,600 11,408 11,556 Revenue from Government - 11,390 11,381 11,164 11,287 Surplus (Deficit) - (97) (219) (244) (269) Surplus (Deficit) attributable to the Australian Government - (97) (219) (244) (269) OTHER COMPREHENSIVE INCOME Changes in asset revaluation reserves - - - - - Total other comprehensive income - - - - - Total comprehensive income attributable to the Australian Government - (97) (219) (244) (269)

Note: Reconciliation of comprehensive income attributable to the agency 2011-12 2012-13 2013-14 2014-15 2015-16 $'000 $'000 $'000 $'000 $'000 Total comprehensive income (loss) attributable to the Australian Government - (97) (219) (244) (269) plus non-appropriated expenses depreciation and amortisation expenses - 161 347 372 397 Total comprehensive income (loss) attributable to the agency - 64 128 128 128

Actual Revised Forward Forward Forward budget estimate estimate estimate 2011-12 2012-13 2013-14 2014-15 2015-16 $'000 $'000 $'000 $'000 $'000 ASSETS

Financial assets

Cash and cash equivalents - 79 36 70 5 Receivables - 1,300 1,650 2,000 2,500 Total financial assets - 1,379 1,686 2,070 2,505 Non-financial assets Property, plant and equipment - 1,720 1,473 1,200 902 Total non-financial assets - 1,720 1,473 1,200 902 Total assets - 3,099 3,159 3,270 3,407 LIABILITIES Payables Suppliers - 409 318 281 272 Other payables - - - - - Total payables - 409 318 281 272 Provisions Employees - 1,125 1,523 1,944 2,388 Other provisions - 904 776 648 520 Total provisions - 2,029 2,299 2,592 2,908 Total liabilities - 2,438 2,617 2,873 3,180 Net Assets - 661 542 397 227 EQUITY Contributed equity - 758 858 957 1,056 Retained surpluses or accumulated deficits - (97) (316) (560) (829) Total equity - 661 542 397 227

Retained Asset Other Contributed Total earnings revaluation reserves equity/ equity reserve capital $'000 $'000 $'000 $'000 $'000 Opening balance as at 1 July 2012 Balance carried forward from previous period - - - - - Surplus (deficit) for the period (97) - - - (97) Appropriation (equity injection) - - - - - Capital budget - Bill 1 (DCB) - - - 758 758 Estimated closing balance as at 30 June 2013 (97) - - 758 661

Actual Revised Forward Forward Forward budget estimate estimate estimate 2011-12 2012-13 2013-14 2014-15 2015-16 $'000 $'000 $'000 $'000 $'000 OPERATING ACTIVITIES Cash received Appropriations - 10,090 11,031 10,814 10,787 Net GST received - 386 328 278 264 Other cash received - 1,501 - - - Total cash received - 11,977 11,359 11,092 11,051 Cash used Employees - 6,108 7,174 7,378 7,589 Suppliers - 4,870 4,228 3,680 3,527 Net GST paid - - - - - Cash to the Official Public Account - - - - - Total cash used - 10,978 11,402 11,058 11,116 Net cash from (or used by) operating activities - 999 (43) 34 (65) INVESTING ACTIVITIES Cash used Purchase of property, plant and equipment - 1,678 100 99 99 Total cash used - 1,678 100 99 99 Net cash from (or used by) investing activities - (1,678) (100) (99) (99) FINANCING ACTIVITIES Cash received Capital budget - Bill 1 (DCB) - 758 100 99 99 Total cash received - 758 100 99 99 Net cash from (or used by) financing activities - 758 100 99 99 Net increase (or decrease) in cash held - 79 (43) 34 (65) Cash and cash equivalents at the beginning of the reporting period - - 79 36 70 Cash and cash equivalents at the end of the reporting period - 79 36 70 5

Actual Revised Forward Forward Forward budget estimate estimate estimate 2011-12 2012-13 2013-14 2014-15 2015-16 $'000 $'000 $'000 $'000 $'000 CAPITAL APPROPRIATIONS Capital budget - Bill 1 (DCB) - 758 100 99 99 Total capital appropriations - 758 100 99 99 Total new capital appropriations represented by: Purchase of non-financial assets - 758 100 99 99 Other - - - - - Total items - 758 100 99 99 PURCHASE OF NON-FINANCIAL ASSETS Funded by capital appropriation - DCB - 758 100 99 99 Funded internally from Departmental resources - 1,123 - - - Total acquisitions of non-financial assets - 1,881 100 99 99 RECONCILIATION OF CASH USED TO ACQUIRE ASSETS TO ASSET MOVEMENT TABLE Total purchases - 1,881 100 99 99 Non-cash purchases1 - 203 - - - Total cash used to acquire assets - 1,678 100 99 99

DCB = Departmental Capital Budget. 1Non-cash purchases comprise provisions for end of lease restoration.

Other Buildings property, Intangibles Total plant & equipment $'000 $'000 $'000 $'000 As at 1 July 2012 Gross book value - - - - Accumulated depreciation/amortisation and impairment - - - - Opening net book balance - - - - CAPITAL ASSET ADDITIONS Estimated expenditure on new or replacement assets By purchase - appropriation ordinary annual services - 758 - 758 By purchase - internal departmental resources - 1,123 - 1,123 Sub-total - 1,881 - 1,881 Other movements Depreciation/amortisation expense - 161 - 161 Disposals1 - - - - Other - - - - as at 30 June 2013 Gross book value - 1,881 - 1,881 Accumulated depreciation/amortisation and impairment - 161 - 161 Closing net book balance - 1,720 - 1,720

1Proceeds may be returned to the Official Public Account.

Actual Budget Forward Forward Forward estimate estimate estimate estimate 2011-12 2012-13 2013-14 2014-15 2015-16 $'000 $'000 $'000 $'000 $'000 INCOME ADMINISTERED ON BEHALF OF GOVERNMENT Non-taxation Other sources of non-taxation revenues - 2,785 - - - Total non-taxation - 2,785 - - - Total revenues administered on behalf of Government - 2,785 - - - Total income administered on behalf of Government - 2,785 - - - EXPENSES ADMINISTERED ON BEHALF OF GOVERNMENT Suppliers - 20,588 22,180 22,783 23,279 Depreciation and amortisation - - - - - Grants - other - - - - - Total expenses administered on behalf of Government - 20,588 22,180 22,783 23,279

Actual Budget Forward Forward Forward estimate estimate estimate estimate 2011-12 2012-13 2013-14 2014-15 2015-16 $'000 $'000 $'000 $'000 $'000 LIABILITIES ADMINISTERED ON BEHALF OF GOVERNMENT Payables Suppliers - 1,716 1,848 1,895 1,936 Total payables - 1,716 1,848 1,895 1,936 Total liabilities administered on behalf of Government - 1,716 1,848 1,895 1,936

Actual Budget Forward Forward Forward estimate estimate estimate estimate 2011-12 2012-13 2013-14 2014-15 2015-16 $'000 $'000 $'000 $'000 $'000 OPERATING ACTIVITIES Cash used Suppliers - 16,087 22,048 22,736 23,238 Total cash used - 16,087 22,048 22,736 23,238 Net cash from (or used by) operating activities - (16,087) (22,048) (22,736) (23,238) Net increase (or decrease) in cash held - (16,087) (22,048) (22,736) (23,238) Cash at beginning of reporting period - - - - - Cash from Official Public Account for: - special accounts ------appropriations - 16,087 22,048 22,736 23,238 Cash at end of reporting period - - - - -

147 GLOSSARY

System of accounting where items are brought to account and included in Accrual the financial statements as they are earned or incurred, rather than as they accounting are received or paid.

Accumulated The aggregate depreciation recorded for a particular depreciating asset. depreciation

Additional The Additional Estimates process updates estimates from the previous Estimates Budget update. Where amounts appropriated in the annual appropriation acts at Budget time are insufficient, Parliament may appropriate more funds to portfolios through Additional the Additional Estimates Acts. These are Appropriation Bills No. 3 and No. 4, Estimates Bills and a separate Bill for Parliamentary Departments (Appropriations or Acts (Parliamentary Departments) Bill (No.2)). These Bills are introduced into the Parliament sometime after the Budget Bills. Expenses, revenues, assets or liabilities managed by agencies on behalf of Administered the Australian Government. Agencies do not control administered items. items Administered items include grants, subsidies and benefits (for example, funding for the Pharmaceutical Benefits Scheme). A form of appropriation which allows a department access to certain money Annotated it receives in payment of services. The nature and extent of the amount to appropriation be appropriated are specified in Regulation 15 and 16 under s31 of the Financial Management Act (FMA) 1997. Two appropriation Bills are introduced into Parliament in May and comprise Annual the Budget. Further Bills are introduced later in the financial year as part of appropriation the additional estimates process. Parliamentary departments have their own appropriations. The amount of public moneys authorised by Parliament for expenditure from Appropriation Consolidated Revenue Fund (CRF). Appropriations authorise expenditure by the Australian Government for particular purposes.

The average number of employees receiving salary/wages (or compensation ASL (Average in lieu of salary/wages) over a financial year, with adjustments for casual Staffing Levels) and part-time employees to show the full-time equivalent.

Future economic benefits controlled by an entity as a result of past Assets transactions or past events. Available appropriation is used to allow a comparison of the current year’s appropriation with what was made available for use in the previous year. Available Available appropriation is the amount available to be drawn down, and is appropriation equal to: Budget appropriation + Additional Estimates appropriation + Advance to the Finance Minister (AFM) — Savings — Rephasings — Other Reductions +/- Section 32. A decision by Cabinet or Ministers in the Budget process that has resulted in Budget a change in expenditure in the current year and or the forward years. See measure also cross-portfolio budget measure. CAC Act Commonwealth Authorities and Companies Act 1997

148 Glossary

This Act regulates the financial affairs of Commonwealth authorities and companies. In particular, it has detailed rules about reporting and accountability. This Act also deals with other matters relating to Commonwealth authorities and companies, such as banking and investment and the conduct of officers. Capital Expenditure by an agency on non financial assets, for example purchasing a expenditure building.

Cross-portfolio This is a Budget measure which affects outcomes administered in a number Budget of portfolios. measure

A statement of the agencies estimated capital funding, through Appropriation Capital Budget Act No. 1 Departmental Capital Budget funding or Appropriation Act No. 2 Statement equity injection funding and the agencies estimated expenditures on non financial assets. Assets, liabilities, revenues and expenses which are controlled by the agency in providing its outputs. Departmental items would generally include Departmental computers, plant and equipment assets used by agencies in providing goods items and services and most employee expenses, supplier costs and other administrative expenses incurred. Departmental Capital Budget funding appropriated to FMA Act entities Departmental through their Appropriation Act 1 Departmental appropriation, for the ongoing Capital Budget replacement of Departmental assets which cost less than $10 million. An expense recognised systematically for the purpose of allocating the Depreciation depreciable amount of a depreciable asset over its useful life. An annual deduction of a percentage of running costs from an agency's Efficiency budget, which acts as both an incentive to efficiency and a quantification of dividend some of the efficiency gains made by an agency in the previous year. Equity or net Residual interest in the assets of an entity after deduction of its liabilities. Assets Expense The value of resources consumed or lost during the reporting period. Fair values are prices in arm’s lengths transactions between willing buyers and Fair Value sellers in an active market. Financial Management and Accountability Act 1997 FMA Act The principal legislation governing the proper use and management of Commonwealth public money and public property. FMA Regulations and FMA Orders are made pursuant to the Act. The amount for which an asset could be exchanged between knowledgeable, Fair Value willing parties in an arm’s length transaction. A system of rolling three year financial estimates. After the Budget is passed, Forward the first year of the forward estimates becomes the base for next year's Budget estimates bid, and another outyear is added to the forward estimates.

149 Glossary

The original cost of acquisition of an asset, including any costs associated with acquisition. Under AASB 116, Property, Plant and Equipment are required to be reported initially at the cost of acquisition (historical cost). The Australian Historical Government’s financial reporting requirements issued under the Finance cost Minister's Orders require the revaluation of noncurrent assets with sufficient regularity to ensure that the carrying amount of assets does not differ materially from fair value as at reporting date. Future sacrifices of economic benefits that an entity is presently obliged to Liabilities make to other entities as a result of past transactions or other past events. Operating Equals income less expenses. result Outcomes are the results of events, actions or circumstances including in particular, the impact of the Australian Government on the Australian community. Outcomes may be linked with both the outputs of agencies using the departmental expenses under their control, and with the administered Outcomes expenses which agencies manage on behalf of the Australian Government. Planned outcomes represent the changes desired by Government. The achievement of actual outcomes is assessed and reported in the Annual Report. A concise list of indicators, which are used to measure agency effectiveness in achieving the Government’s outcomes. Indicators must be measurable, but may Performance be qualitative or quantitative. Indicators in the Portfolio Budget Statement (PBS) indicators are reported against the Annual Report for the same year. Outcomes are generally measured by performance indicators relating to effectiveness and equity, but may include efficiency and access indicators. Portfolio Statements prepared by portfolios to explain the Budget appropriations in terms Budget of outcomes and programs. Statements Expenses are indexed by a price parameter for anticipated increases in costs Price over the estimates period. Changes in indexation are annotated to each Parameter outcome as ‘Price parameter adjustment’ or ‘Application of indexation Adjustment parameters’. Commonwealth programs deliver benefits, services or transfer payments to individuals, industry/business or the community as a whole and are the primary Programs vehicles for government agencies to achieve the intended results of their outcome statements. Commencing from the 2009-10 Budget agencies were required to report to Parliament by program. Relates to the characteristics by which customers or stakeholders judge a Quality product or service. Assessment of quality involves the use of information gathered from a range of sources including customers and stakeholders. A measure of how many, or how much, of a product or service is produced. Quantities specified in the Portfolio Budget Statements are usually estimates Quantity based on the best available evidence. Agencies report on actual quantities in their annual reports. Revenue Total value of resources earned or received during the reporting period.

150 Glossary

A special account is an appropriation mechanism that notionally sets aside an amount within the CRF to be expended for specific purposes. The amount of appropriation that may be drawn from the CRF by means of a special account is Special limited to the balance of each special account. Special accounts are not bank account accounts. However, amounts forming the balance of a special account may be held in the Official Public Account, an agency official bank account or by an outsider authorised in a manner consistent with section 12 of the FMA Act. Special appropriations are provisions within an act, other than the annual appropriation acts, that authorise expenditure for particular purposes. Special Special appropriations may state a maximum amount that is appropriated for the appropriation particular purpose or may specify the legislative criteria that will determine the amount to be paid.