Portfolio Budget Statements 2012-13 - AGD

ATTORNEY-GENERAL’S DEPARTMENT

Section 1: Agency overview and resources

1.1 STRATEGIC DIRECTION STATEMENT

The Attorney-General’s Department (the Department) is the central policy and coordinating department of the Attorney-General’s portfolio.

The Department seeks to achieve the outcome of a just and secure society through the maintenance and improvement of Australia’s law and justice framework and its national security and emergency management system.

The Department accomplishes this by: • protecting and promoting the rule of law, and • building a safe, secure and resilient Australia.

In 2012–13 the Department will focus on the following priority areas: • Protecting national security and building resilient communities – Develop capability and capacity within the community to prepare for, prevent, respond to, mitigate and recover from national security threats. – Through the countering violent extremism program, promote a safe and inclusive Australia by assisting individuals to disengage from violent extremist influences and build communities that are less vulnerable to the processes of radicalisation, to reduce the potential for a home-grown terrorist attack. – Develop policy to manage Australia’s borders. – Support a whole-of-nation, resilience-based approach to emergency management policy and programs. • Combating serious and organised crime and corruption – Engage in international legal cooperative efforts against crime. – Develop policies to reduce Australia’s exposure to corruption risks, including through transnational crime. – Implement the Organised Crime Strategic Framework to ensure a coordinated, collaborative and priority-driven approach to combating organised crime. • Promoting equity and efficiency in the delivery of justice – Support a legal framework for equitable access to fair, simple, effective dispute resolution mechanisms, including federal courts and tribunals.

13 Attorney-General’s Department

– Improve the clarity and accessibility of Commonwealth laws. – Promote the development of streamlined and integrated family support services. – Improve the administrative justice system to support better informed, fairer and more responsive government decision making. • Protecting people’s rights – Ensure equitable access to and enjoyment of the rights, benefits and protections of the justice system for vulnerable and disadvantaged Australians at risk of social exclusion. – Implement Australia’s Human Rights Framework through enhanced scrutiny of legislation and human rights education. – Develop policies to strengthen community safety for Indigenous Australians. – Develop privacy and information policy to improve protections for individuals in an environment of rapid technological change. – Improve outcomes in native title claims resolution and agreement- making, with a focus on promoting economic opportunities for Indigenous communities. • Adapting law and law enforcement in the digital economy – Develop policy to support microeconomic reform to maximise innovation, productivity and efficiencies in business and government. – Combat criminal activity in the online environment. – Strengthen the Australian Government’s approach to identity security, to improve trust and confidence in the online environment and support the growing number of services that make use of new and emerging information and communication technologies. – Develop measures to reduce regulatory burdens and improve productivity through harmonisation of laws and support for economic reforms. • Supporting the Attorney-General as the First Law Officer of the Commonwealth – Provide timely and quality advice to government through the Attorney- General and the Minister for Home Affairs and Justice. – Provide a high standard of international law advice and services, including in relation to international litigation such as that involving tobacco plain packaging and Japan’s whaling program, to ensure that Australia successfully prosecutes international litigation and acts in accordance with its own international obligations. – Contribute to advancing a rules-based global order and developing an international law regime that reflects Australian interests.

– Develop and implement a Rule of Law Aid Strategy to promote the government’s international aid priorities and facilitate coordinated and effective delivery of rule of law aid to partner countries. The measures for the Department in the 2012–13 Budget are set out in Table 1.2 and in Budget Paper No. 2.

The major measures for the Department for 2012–13 are strengthening community safety and access to justice for Indigenous Australians in the Northern Territory, building the effectiveness of police, government officials and laws in Pacific partner countries, strengthening human rights and extending the government’s Document Verification Service to the private sector on a cost-recovery basis to combat identity fraud.

The Department will continue to work closely and cooperatively with its portfolio agencies, other government agencies (Commonwealth, state and territory), advisory bodies, businesses, professional associations, community organisations and citizens in achieving its objectives.

The Department will continue to strengthen its relationship with citizens, its capacity to provide strategic policy, the efficiency, quality and agility of its services, and its ability to look forward and proactively position itself to address the challenges facing the nation in coming years.

The legislative drafting and publishing functions in the Department will be transferred to the Office of Parliamentary Counsel (OPC). The date of the transfer is anticipated to be 1 July 2012, subject to the passage of enabling legislation and other arrangements between the Department and OPC being in place. The associated funding transfer will be made under section 32 of the Financial Management and Accountability Act 1997 and is not included in these statements.

1.2 AGENCY RESOURCE STATEMENT

Table 1.1 shows the total resources from all sources. The table summarises how resources will be applied by administered and departmental classification.

Table 1.1: Agency resource statement—Budget estimates for 2012–13 as at Budg et May 2012 Estimate of prior year Actual amounts + Proposed = Total available available in at Budget estimate appropriation 2012–13 2012–13 2012–13 2011–12 $’000 $’000 $’000 $’000 ORDINARY ANNUAL SERVICES1 Departmental appropriation Prior year departmental appropriation2 56,280 – 56,280 94,940 Departmental appropriation3 – 208,287 208,287 230,026 s 31 relevant agency receipts4 – 31,365 31,365 37,661 Total 56,280 239,652 295,932 362,627 Administered expenses Outcome 15 – 414,315 414,315 419,739 Total – 414,315 414,315 419,739 Total ordinary annual services A 56,280 653,967 710,247 782,366 OTHER SERVICES6 Administered expenses Specific payments to states, ACT, NT and local government Outcome 1 – 5,000 5,000 5,709 Total – 5,000 5,000 5,709 Departmental non-operating Prior year departmental appropriation2 – – – 3,006 Equity injections – 234 234 8,057 Total – 234 234 11,063 Administered non-operating Prior year administered appropriation2 70,611 – 70,611 70,611 Administered assets and liabilities – 127,133 127,133 18,671 Total 70,611 127,133 197,744 89,282 Total other services B 70,611 132,367 202,978 106,054 Total available annual appropriations 126,891 786,334 913,225 888,420

Table 1.1: Agency resource statement—Budget estimates for 2012–13 as at Budg et May 2012 (continued) Estimate of prior year Actual amounts + Proposed = Total available available in at Budget estimate appropriation 2012–13 2012–13 2012–13 2011–12 $’000 $’000 $’000 $’000 SPECIAL APPROPRIATIONS Special appropriations limited by criteria/entitlement Law Officers Act 1964 – 450 450 450 National Firearms Program Implementation Act 1996 – 75 75 75 Social Security (Administration) Act 1999 – 55,500 55,500 85,500 Total special appropriations C – 56,025 56,025 86,025 Total appropriations excluding special accounts 126,891 842,359 969,250 974,445 SPECIAL ACCOUNTS Opening balance7 – 7,269 7,269 17,208 Non-appropriation receipts to special accounts – 6,583 6,583 5,645 Total special accounts D – 13,852 13,852 22,853 Total resourcing (A+B+C+D) 126,891 856,211 983,102 997,298 Total net resourcing for agency 126,891 856,211 983,102 997,298 All figures are GST exclusive. 1. Appropriation Bill (No. 1) 2012–13. 2. Estimated adjusted balance carried forward from previous years. 3. Includes an amount of $7.289m in 2012–13 for the departmental capital budget (see Table 3.2.5 for furthe r details). For accounting purposes this amount has been designated as ‘contributions by owners’. 4. Section 31 relevant agency receipts—estimate. 5. Includes an amount of $1.887m in 2012–13 for the administered capital budget (see Table 3.2.10 for furth er details). For accounting purposes this amount has been designated as ‘contributions by owners’. 6. Appropriation Bill (No. 2) 2012–13. 7. Estimated opening balance for the Services for Other Entities and Trust Moneys— Attorney-General’s Department Special Account. For further information on special accounts, see Table 3.1. 2.

Third-party payments from and on behalf of other agencies 2012–13 2011–12 $’000 $’000 Payments made on behalf of other agencies Australian Public Service Commission—Remuneration Tribunal Act 1973 (s 7) 3,614 3,540

1.3 BUDGET MEASURES Budget measures relating to the Attorney-General’s Department are detailed in Budget Paper No. 2 and are summarised below.

Table 1.2: Agency 2012–13 Budget measures 2011–12 2012–13 2013–14 2014–15 2015–16 Program $’000 $’000 $’000 $’000 $’000 Revenue measures Document Verification Service— extension to the private sector 1.2 Administered revenues – – – – – Departmental revenues – – 996 2,326 3,537 Total revenue measures – – 996 2,326 3,537 Expense measures Indigenous Law and Justice Programs—redirection of funding 1.1 Administered expenses – (6,504) (5,729) (5,800) (5,911) Departmental expenses – – – – – Total – (6,504) (5,729) (5,800) (5,911) Stronger Futures in the Northern Territory—community safety and justice1 1.1, 1.5 Administered expenses – 28,829 nfp nfp nfp Departmental expenses – 1,144 nfp nfp nfp Total – 29,973 – – – National Disaster Recovery Taskforce—extension2 1.2 Administered expenses – – – – – Departmental expenses – – 1,037 – – Total – – 1,037 – – ANZAC Centenary Program 2014–183 1.2 Administered expenses – – – – – Departmental expenses – 187 219 226 275 Total – 187 219 226 275 Tax compliance—maintaining the cross agency approach to preventing abuse of secrecy jurisdictions (Project Wickenby)4 1.2 Administered expenses – – – – – Departmental expenses – 76 513 518 – Total – 76 513 518 – Document Verification Service— extension to the private sector 1.2 Administered expenses – – – – – Departmental expenses – – 1,724 2,059 2,284 Total – – 1,724 2,059 2,284 Official development assistance— Pacific Police Development Program —continuation 1.2 Administered expenses – – – – – Departmental expenses – 1,695 1,714 2,190 2,275 Total – 1,695 1,714 2,190 2,275

Table 1.2: Agency 2012–13 Budget measures (continued) 2011–12 2012–13 2013–14 2014–15 2015–16 Program $’000 $’000 $’000 $’000 $’000 Expense measures (continued) Social and Community Services— Queensland pay equity regulation— 1.3, 1.4, back pay5 1.5 Administered expenses 1,087 1,087 931 – – Departmental expenses – – – – – Total 1,087 1,087 931 – – Natural Disaster Recovery and Rebuilding—New Zealand Special Category Visa Holders Ex-Gratia Payments6 1.7 Administered expenses – – – – – Departmental expenses – – – – – Total – – – – – Total expense measures Administered 1,087 23,412 (4,798) (5,800) (5,911) Departmental – 3,102 5,207 4,993 4,834 Total 1,087 26,514 409 (807) (1,077) Capital measures Document Verification Service— extension to the private sector 1.2 Administered capital – – – – – Departmental capital – – 1,451 – – Total capital measures – – 1,451 – – Prepared on a Government Finance Statistics (fiscal) basis. 1. The lead agency for this measure is the Department of Families, Housing, Community Services and Indige nous Affairs. The full measure description and package details appear in Budget Paper No. 2 under the Fami lies, Housing, Community Services and Indigenous Affairs portfolio. 2. The lead agency for this measure is Department of Regional Australia, Local Government, Arts and Sport. The full measure description and package details appear in Budget Paper No. 2 under the Regional Australia, Local Government, Arts and Sport portfolio. 3. The lead agency for this measure is the Department of Veterans’ Affairs. The full measure description and package details appear in Budget Paper No. 2 under the Defence portfolio. 4. The lead agency for this measure is the Australian Taxation Office. The full measure description and pack age details appear in Budget Paper No. 2 under the Treasury portfolio. 5. The lead agency for this measure is the Department of Education, Employment and Workplace Relations. The full measure description and package details appear in Budget Paper No. 2 under the Education, Emplo yment and Workplace Relations portfolio. 6. The estimated cost of $0.150m for this measure will be funded from within existing resources in the Department.

Section 2: Outcomes and planned performance

2.1 OUTCOMES AND PERFORMANCE INFORMATION

Government outcomes are the intended results, impacts or consequences of actions by the government on the Australian community. Commonwealth programs are the primary vehicle by which government agencies achieve the intended results of their outcome statements. Agencies are required to identify the programs that contribute to government outcomes over the budget and forward years.

The Department’s outcome is described below together with its related programs, specifying the performance indicators and targets used to assess and monitor the performance of the Department in achieving government outcomes.

Outcome 1: A just and secure society through the maintenance and improvement of Australia’s law and justice framework and its national security and emergency management system

Outcome 1 strategy The Department supports the Attorney-General’s and Minister for Home Affairs and Justice’s priorities of combating serious and organised crime and corruption, protecting national security and building resilient communities, protecting people’s rights, promoting equity and efficiency in the delivery of justice, adapting law and law enforcement in the digital economy, and supporting the Attorney-General as First Law Officer of the Commonwealth. It does this through seven programs that contribute to the provision of an equitable and accessible system of federal civil justice and to coordinated federal activity on criminal justice, national security and emergency management.

In fulfilling its outcome, the Department will: • ensure accurate, relevant, comprehensive and timely advice to the Attorney-General, the Minister for Home Affairs and Justice and the Australian Go vernment • maintain a robust framework for cooperation, collaboration and communication acr oss the portfolio and whole of government • engage with the Australian community • apply a comprehensive and practical framework of policy, legislation, process and programs that meets current and identifiable future needs, and • provide specialist support to the Attorney-General in the role of First Law Officer.

Through Program 1.1: Attorney-General’s Department Operating Expenses—Civil Justice and Legal Services, the Department will contribute to Outcome 1 in 2012–13 and the forward years by: • supporting a legal framework for equitable access to fair, simple, effective dispute r esolution mechanisms, including federal courts and tribunals • ensuring equitable access to and enjoyment of the rights, benefits and protections of the justice system for vulnerable and disadvantaged Australians at risk of social exc lusion • developing civil justice laws and processes that are easy to find, understand, apply and implement, and that provide certainty and meet the needs of individual citizen s and other private parties, and • preparing government legislation and policy that gives effect to Australia’s international legal obligations and protects Australia’s interests under international law.

Through Program 1.2: Attorney-General’s Department Operating Expenses—National Security and Criminal Justice, the Department will contribute to Outcome 1 in 2012–13 and the forward years by: • ensuring a sufficient capability and capacity within the national security communit y and the Australian community to prepare for, prevent, respond to, mitigate and r ecover from national security threats • developing preventative mechanisms and effective responses to adverse national se curity events through an effective legal framework for counter-terrorism, and telecommunications interception • through the countering violent extremism program, reducing the risk of home-grown terrorism by strengthening Australia’s resilience to radicalisation and assisting individuals to disengage from extremist influences and beliefs • supporting the operations of portfolio agencies, as well as Australian Government a nd international partner agencies, by developing and overseeing policy to manage Australia’s borders and prevent harm to the Australian economy, businesses and in dividuals from serious and organised crime, including cyber crime • supporting a whole-of-nation, resilience-based approach to emergency managemen t policy and programs, and • engaging in international legal cooperative efforts against crime.

Programs 1.3 through 1.6 encompass specific administered items within relevant categories, complementing the general departmental operations, and are directed towards achieving a just and secure society.

Through Program 1.7: Australian Government Disaster Financial Support Payments, the Department will contribute to Outcome 1 in 2012–13 and the forward years by: • supporting the recovery needs of individuals and families adversely affected by ma jor disasters, and • administering relief appeal funding to state and territory governments for communities affected by major disasters.

The Department is conscious of a number of external factors that could impact on its ability to achieve Outcome 1 over the budget and forward years. For example, rapid economic, environmental, social or global changes can impact on the effectiveness of particular strategies or necessitate a shift in priorities. The Department will stay abreast of such changes and will ensure that the frameworks it develops are sufficiently flexible to allow effective responses. The Department will work closely with others, both in Australia and overseas, to identify changing circumstances and appropriate responses to ensure it continues to achieve its stated outcome of a just and secure society through the maintenance and improvement of Australia’s law and justice framework and its national security and emergency management system.

Following completion of the Department’s strategic plan for 2012–15, revised performance indicators will be developed and included in the 2012–13 Portfolio Additional Estimates Statements.

Outcome 1 expense statement Table 2.1 provides an overview of the total expenses for Outcome 1, by program.

Table 2.1: Budgeted expenses for Outcome 1 2011–12 Estimated 2012–13 actual Estimated Outcome 1: A just and secure society through the maintenance and improvement of Australia’s law and justice framework and its national expenses expenses security and emergency management system $’000 $’000 Program 1.1: Attorney-General’s Department Operating Expenses— Civil Justice and legal Services Departmental expenses Departmental appropriation1 100,392 94,331 Expenses not requiring appropriation in the budget year2 15,383 9,194 Total for Program 1.1 115,775 103,525 Program 1.2: Attorney-General’s Department Operating Expenses— National Security and Criminal Justice Departmental expenses Departmental appropriation1 144,545 138,032 Expenses not requiring appropriation in the budget year3 18,420 10,286 Total for Program 1.2 162,965 148,318 Program 1.3: Justice Services Administered expenses Ordinary annual services (Appropriation Bill No. 1) 79,585 76,989 Special appropriations 450 450 Total for Program 1.3 80,035 77,439 Program 1.4: Family Relationships Administered expenses Ordinary annual services (Appropriation Bill No. 1) 165,082 166,892 Total for Program 1.4 165,082 166,892 Program 1.5: Indigenous Law and Justice Administered expenses Ordinary annual services (Appropriation Bill No. 1) 124,072 126,957 Total for Program 1.5 124,072 126,957 Program 1.6: National Security and Criminal Justice Administered expenses Ordinary annual services (Appropriation Bill No. 1) 46,959 44,590 Other services (Appropriation Bill No. 2) 5,709 5,000 Special appropriations 75 75 Special accounts 15,584 7,614 Expenses not requiring appropriation in the budget year4 6,230 25,865 Total for Program 1.6 74,557 83,144 Program 1.7: Australian Government Disaster Financial Support Payments Administered expenses Ordinary annual services (Appropriation Bill No. 1) 150 – Special appropriations 85,500 55,500 Total for Program 1.7 85,650 55,500

Table 2.1: Budgeted expenses for Outcome 1 (continued) 2011–12 Estimated 2012–13 actual Estimated Outcome 1: A just and secure society through the maintenance and improvement of Australia’s law and justice framework and its national expenses expenses security and emergency management system $’000 $’000 Outcome 1 totals by appropriation type Administered expenses Ordinary annual services (Appropriation Bill No. 1) 415,848 415,428 Other services (Appropriation Bill No. 2) 5,709 5,000 Special appropriations 86,025 56,025 Special accounts 15,584 7,614 Expenses not requiring appropriation in the budget year 6,230 25,865 Departmental expenses Departmental appropriation 244,937 232,363 Expenses not requiring appropriation in the budget year 33,803 19,480 Total expenses for Outcome 1 808,136 761,775

2011–12 2012–13 Average staffing level (number) 1,482 1,393 Note: Departmental appropriation splits and totals are indicative estimates and may change in the course of t he budget year as government priorities change. 1. Departmental appropriation combines ‘Ordinary annual services (Appropriation Bill No. 1)’ and ‘Revenue fr om independent sources (s 31)’. 2. Expenses not requiring appropriation in the budget year are made up of resources received free of charge of $0.150m and depreciation and amortisation expenses of $9.044m. 3. Expenses not requiring appropriation in the budget year are made up of resources received free of charge of $0.202m and depreciation and amortisation expenses of $10.084m. 4. Expenses not requiring appropriation in the budget year are made up of depreciation and amortisation exp enses of $2.533m and concessions on loan advances of $23.332m.

Contributions to Outcome 1

Program 1.1: Attorney-General’s Department Operating Expenses—Civil Justice and Legal Services

Program 1.1 objective Equal access to and enjoyment of the rights, benefits and protections of the federal civil justice system for all Australians. • A legal framework that supports equitable access to fair, simple, effective dispute resolution mechanisms, including federal courts and tribunals. • Equitable access to and enjoyment of the rights, benefits and protections of the justice system for vulnerable and disadvantaged Australians at risk of social exclusion. • Civil justice laws and processes that provide certainty and meet the needs of individual citizens and other private parties for accessible, equitable and practical legal resolution of issues in the areas of personal property title, personal bankruptcy resolution, dealing with the legal profession, classification of media material, copyright protection and disputes with the Australian Government. • Government legislation and policy that supports the protection of individuals’ privacy and access to government information. • Laws that are easy to find, understand, apply and implement. • Government legislation and policy that gives effect to Australia’s international legal obligations and protects Australia’s interests under international law.

Program 1.1 expenses The decrease in expenses from 2011–12 to 2012–13 is due to prior year measures reaching completion (including Natural Disaster Recovery and Rebuilding—Commission of Inquiry into Queensland Floods, Personal Property Securities Register and Commonwealth Law Ministers Meeting 2011) and one-off program expenses in 2011–12 carried over from the previous financial year.

2011–12 2013–14 2014–15 2015–16 Revised 2012–13 Forward Forward Forward budget Budget year 1 year 2 year 3 $’000 $’000 $’000 $’000 $’000 Annual departmental expenses 100,392 94,331 95,094 93,251 94,637 Expenses not requiring appropriation in the budget year1 15,383 9,194 10,151 9,258 8,689 Total program expenses 115,775 103,525 105,245 102,509 103,326 1. Expenses not requiring appropriation in the budget year are made up of resources free of charge of $0.15 0m and depreciation and amortisation expenses of $9.044m.

Program 1.1 deliverables • Accurate, relevant, comprehensive and timely advice to the Australian Government on national and international issues relating to the rights of individuals and Australia’s obligations in the areas of civil justice, family law, access to justice, human rights, privacy, freedom of information and social inclusion, both now and into the future. • A robust framework for cooperation, collaboration and communication across the whole of government and civil justice communities that ensures the necessary information and citizen services are in place when and where needed and the regular communication of lessons learnt. • A comprehensive and practical framework of policy, legislation, delegation, process and programs that meets current and identifiable future needs in the areas of civil justice, family law, access to justice, human rights, privacy, freedom of information and social inclusion.

Program 1.1 key performance indicators • Improved access to justice. • The human rights of individuals to whom Australia has obligations are protected and promoted. • Those individuals at greatest risk of social exclusion have access to appropriate legal assistance services. • Improved family and community safety for Indigenous Australians. • A reduction in the complexity of laws. • Contribution to effective microeconomic reform. • Clarity and certainty of advice on international law and legislation implementing Australia’s obligations under international law.

Program 1.2: Attorney-General’s Department Operating Expenses—National Security and Criminal Justice

Program 1.2 objective National security and emergency management capabilities and criminal justice systems that provide the necessary policy, legislation and coordination to protect the rights and welfare of all Australian citizens and organisations. The Australian Government’s ‘all hazards’ approach to national security requires that resources are effectively applied to develop and maintain the common and specialist capabilities necessary to address the full range of threats and hazards facing Australia. • Australian governments, businesses, individuals and non-government organisations are well prepared to deal with and recover from adverse events and security threats, particularly in the areas of natural disasters, identity security, critical infrastructure and chemicals of concern. • A sufficient capability and capacity within the national security community and the Australian community to prepare for, prevent, respond to, mitigate and recover from (PPRR) national security threats. • Prevention of and effective response to adverse national security events through development and maintenance of an effective legal framework for counter-terrorism, telecommunications interception, surveillance and background checking; and policy on countering violent extremism, national security information coordination and sharing, and geospatial capacity. • Effective coordination of operations of the portfolio agencies as well as Australian Government and international partner agencies in managing Australia’s borders and preventing harm to the Australian economy, businesses and individuals from serious and organised crime. • Strengthening of Australia’s engagement in international legal cooperative efforts against crime.

Linked to: Program 1.1: Bureau of Meteorology.

Program 1.2 expenses The decrease in expenses from 2011–12 to 2012–13 is primarily due to one-off expenses in 2011–12 carried over from the previous financial year, and cyclical changes in volumes of aviation and maritime industry security checks.

2011–12 2013–14 2014–15 2015–16 Revised 2012–13 Forward Forward Forward budget Budget year 1 year 2 year 3 $’000 $’000 $’000 $’000 $’000 Annual departmental expenses 144,545 138,032 139,155 136,750 137,814 Expenses not requiring appropriation in the budget year1 18,420 10,286 11,640 10,732 10,833 Total program expenses 162,965 148,318 150,795 147,482 148,647 1. Expenses not requiring appropriation in the budget year are made up of resources free of charge of $0.20 2m and depreciation and amortisation expenses of $10.084m.

Program 1.2 deliverables • Accurate, relevant, comprehensive and timely advice to the Australian Government on national and international security, emergency management and criminal justice issues, both current and future. • A whole-of-nation, resilience-based approach to emergency management policy and programs. • A robust framework for cooperation, collaboration and communication across the national security and emergency management communities that ensures the necessary information and resources are in place when and where needed in times of crisis, and the systematic communication of lessons learnt. • A comprehensive and practical framework of policy, legislation, delegation and process that enables effective PPRR action to current and identifiable future threats. • Effective support for countries within our region to develop and implement effective anti-people smuggling legislation. • Implement the Commonwealth Organised Crime Strategic Framework by improving information sharing and asset confiscation arrangements.

Program 1.2 key performance indicators • National leadership and coordination on identity security policy, including whole-of-government leadership for the National Identity Security Strategy. • A coordinated legal, policy and operational framework to provide a resilience-based PPRR approach to disasters, including support to crisis coordination and decision making. • Provision and support of a relevant and consistent protective security environment across government. • Degree of engagement by state, territory and Australian Government agencies in building national security capability and capacity. • A legal and policy framework that builds community confidence and facilitates effective action to prevent and respond to national security challenges. • Enhanced community and stakeholder confidence in and understanding of the national security legal and policy framework. • Effective legislative and policy frameworks and conduct of casework that bring people to justice while maintaining suitable safeguards and accountability mechanisms. • Implementation of a framework for addressing serious and organised crime. • Australia’s international crime cooperation frameworks are maintained and strengthened. • Identifiable progress on legislative and operational initiatives undertaken with foreign countries.

Program 1.3: Justice Services

Program 1.3 objective Availability of sufficient and effective resources to provide legal assistance services for disadvantaged Australians and communities. Linked to: Legal aid payments to the states are made by the Treasury under the Federal Financial Relations Act.

Program 1.3 expenses The decrease in expenses from 2011–12 across the forward estimates is primarily due to a change in funding for the Family Court of Western Australia, which has reduced by $5.000m in 2012–13, as a result of changes in funding arrangements for Commonwealth Law Courts buildings, with a commensurate reduction in expenses for the Family Court of Western Australia. The decrease in expenses from 2013–14 to 2014–15 is primarily due to the one-off movement of funds from 2011–12 to 2012–13 and 2013–14 for the provision of legal assistance for expensive Commonwealth criminal cases. 2011–12 2013–14 2014–15 2015–16 Revised 2012–13 Forward Forward Forward budget Budget year 1 year 2 year 3 $’000 $’000 $’000 $’000 $’000 Annual administered expenses Payments for Services under Family Law Act 1975 and the Child Support Scheme legislation 2,354 2,450 2,601 2,664 2,717 Payments to Law Courts Limited for contributions to operating and capital expenses 2,430 2,468 2,533 2,581 2,630 Family Court of Western Australia 17,448 12,532 12,894 13,188 13,354 Payments for membership of international bodies 550 550 550 550 550 Payments for grants to Australian organisations 1,263 1,286 1,905 1,931 1,968 Payments for the provision of legal aid —Legal Aid Commissions 9,858 14,522 10,824 3,760 3,831 Payments for the provision of community legal services 35,005 36,236 37,007 37,134 37,840 Financial assistance towards legal costs and related expenses 6,997 4,825 5,130 5,284 5,384 Commonwealth Human Rights Education Program 509 519 790 805 820 Personal Property Securities—public awareness campaign 1,602 – – – – Publications of Acts and legislative instruments 1,569 1,601 1,644 1,677 1,713 Special appropriations Law Officers Act 1964 450 450 450 450 450 Total program expenses 80,035 77,439 76,328 70,024 71,257

Program 1.3 deliverables Implement arrangements under the National Partnership Agreement on Legal Assistance Services and related agreements with non-government service providers. Enhanced support for pro bono work through provision of assistance for the potentially prohibitive cost of disbursements via the consolidated financial assistance scheme from 1 July 2012.

Program 1.3 key performance indicators Improvement in access to education, information, advice and support services for disadvantaged Australians and communities.

Program 1.4: Family Relationships

Program 1.4 objective Availability of non-legislative systems and programs that provide access to fair, simple, effective assistance for family matters.

Program 1.4 expenses The annual increases in funding from 2011–12 are due to wage-cost indexation.

2011–12 2013–14 2014–15 2015–16 Revised 2012–13 Forward Forward Forward budget Budget year 1 year 2 year 3 $’000 $’000 $’000 $’000 $’000 Annual administered expenses Family Relationships Services Program 165,082 166,892 170,381 173,525 176,822 Total program expenses 165,082 166,892 170,381 173,525 176,822

Program 1.4 deliverables Enhance the role of family services to improve access to justice and keep more people out of court, including through family dispute resolution.

Program 1.4 key performance indicators Improvement in access to family relationship support services following family separation.

Program 1.5: Indigenous Law and Justice

Program 1.5 objective Improved Indigenous family and community safety.

Linked to: Department of Health and Ageing—Program 1.3: Drug Strategy.

Program 1.5 expenses The increase in funding from 2011–12 to 2012–13 is primarily due to the Stronger Futures in the Northern Territory—community safety and justice measure. This initiative is a 10-year commitment. Estimates from 2013–14 onwards will be finalised following negotiations with the Northern Territory Government regarding the Stronger Futures National Partnership Agreement.

2011–12 2013–14 2014–15 2015–16 Revised 2012–13 Forward Forward Forward budget Budget year 1 year 2 year 3 $’000 $’000 $’000 $’000 $’000 Annual administered expenses Payments under the Indigenous Justice Program 11,459 11,655 11,998 12,199 12,728 Payments for the provision of Family Violence Prevention Legal Services for Indigenous Australia 19,833 19,090 19,674 20,049 20,856 Indigenous Legal Aid Policy Reform Program 65,466 65,537 68,112 69,498 72,295 Payments for Indigenous interpreter services in the Northern Territory 1,285 1,306 1,346 1,372 1,398 Closing the Gap in the Northern Territory law and order measures 25,503 28,829 – – – Native title system 526 540 575 585 596 Total program expenses 124,072 126,957 101,705 103,703 107,873

Program 1.5 deliverables • Indigenous legal aid funding arrangements for three years from 1 July 2011 implemented. • An Aboriginal and Torres Strait Islander Safe Communities Strategy building on the National Indigenous Law and Justice Framework.

Program 1.5 key performance indicators • Identifiable contribution to improving community and family safety of Indigenous Australians. • Improved access to appropriate legal services for Indigenous Australians. • Negotiation of Safe Communities Strategy successfully concluded with states and territories.

• The Australian Government and states and territories are engaged in agreed activities identified under the Safe Communities Strategy.

Program 1.6: National Security and Criminal Justice

Program 1.6 objective • Strengthened bilateral and multilateral cooperation in regional and international crime and terrorism prevention. • National and community crime prevention. • National crisis and emergency management, coordination and capability. • Support anti-people smuggling legislation in regional countries. • Support Pacific Island countries to develop police and criminal justice legislation. • Maintain Australia’s participation in the work of the International Criminal Court.

Linked to: • Program 1.1: Bureau of Meteorology. • Natural Disaster Resilience Program and Natural Disaster Relief payments to the states are made by the Treasury under the Federal Financial Relations Act.

Program 1.6 expenses The increase in expenses from 2011–12 to 2012–13 is primarily due to expenses incurred in relation to concessions provided for loan advances relating to natural disaster relief and recovery. Funding decreases in the forward estimates are primarily due to the completion of the Safer Suburbs and Schools Security programs and the National Security—countering violent extremism measure.

2011–12 2013–14 2014–15 2015–16 Revised 2012–13 Forward Forward Forward budget Budget year 1 year 2 year 3 $’000 $’000 $’000 $’000 $’000 Annual administered expenses National Community Crime Prevention Program 259 – – – – Payments for membership of international bodies 106 106 106 106 106 Payments for grants to Australian organisations 1,204 1,212 1,577 1,580 1,580 Safer Suburbs 3,780 2,000 2,000 1,000 – Australia’s contribution to the International Criminal Court 7,862 8,140 8,432 8,630 8,820 Pacific Police Development 279 – – – – Disaster Resilience Australia— Emergency Warning System Database 1,792 1,620 1,668 1,700 1,732 Disaster Resilience Australia Package 2,006 2,013 2,017 2,061 2,100

National Counter-Terrorism Committee —special fund and operating expenses 12,650 12,931 13,309 13,805 14,108 Counter-terrorism exercises 1,038 1,056 1,096 1,098 1,119 National security public information campaign 530 – – – – National aerial firefighting 13,946 13,997 14,484 14,804 14,804 Countering Violent Extremism to Prevent Terrorism 1,507 1,515 1,523 – – Expenses not requiring appropriation in the budget year1 6,230 25,865 5,985 3,110 2,488 Specific purpose payment Schools Security Program 5,709 5,000 5,000 – – Special appropriations National Firearms Program Implementation Act 1996 75 75 75 75 75 Special account expenses Services for Other Entities and Trust Moneys—Attorney-General’s Department Special Account 15,584 7,614 6,026 2,712 310 Total program expenses 74,557 83,144 63,298 50,681 47,242 1. Expenses not requiring appropriation in the budget year are made up of depreciation and amortisation exp enses of $2.533m and concessions on loan advances of $23.332m.

Program 1.6 deliverables • Delivery of financial support to affected primary producers, small businesses and local communities through the Natural Disaster Relief and Recovery Arrangements. • Work with states and territories to enhance effectiveness of emergency warning and communications systems. • Progress with Pacific Island countries in developing police and criminal justice legislation. • Financial obligations met on time and relevant international agreements accord with Australia’s policy objectives. • Fund crime prevention programs. • Through the Natural Disaster Resilience Program, a national partnership agreement with states and territories, deliver a range of support to local communities including disaster mitigation and volunteer support. • Work with the states and territories to implement the National Strategy for Disaster Resilience, in accordance with priorities identified by COAG and emergency management ministers. • Progress recommendations of national interest arising from commissions of inquiry into the 2010–11 disaster season. • A nationally coordinated response to countering violent extremism to prevent terrorism. • Establishment of the National Crisis Coordination Capability Centre. • Design, conduct and evaluate national security exercises and effectively communicate lessons learnt.

Program 1.6 key performance indicators • Identifiable progress on legislative and operational initiatives undertaken with Pacific Island countries. • Fund targeted national and community crime prevention programs. • Achievement of priority disaster resilience initiatives identified by COAG and emergency management ministers. • Prevention of terrorism through a national approach to countering violent extremism. • Australia meets its financial obligations to the International Criminal Court and participates effectively in negotiations regarding its jurisdiction.

Program 1.7: Australian Government Disaster Financial Support Payments

Program 1.7 objective To make immediate, one-off payments to individuals and families adversely affected by major disasters, as well as relief appeal funding to state and territory governments in relation to communities affected by major disasters, to support their recovery needs where authorised by the Attorney-General.

Program 1.7 expenses The expenses in 2011–12 relate to flooding and severe weather events.

2011–12 2013–14 2014–15 2015–16 Revised 2012–13 Forward Forward Forward budget Budget year 1 year 2 year 3 $’000 $’000 $’000 $’000 $’000 Annual administered expenses Ex gratia assistance—New Zealand citizens 150 – – – – Special appropriations Social Security (Administration) Act 1999 85,500 55,500 55,500 55,500 55,500 Total program expenses 85,650 55,500 55,500 55,500 55,500

Program 1.7 deliverables Payments are made to eligible claimants under the provisions of social security law and the Financial Management and Accountability Act 1997.

Program 1.7 key performance indicators • Number of recipients. • Administered outlays. • Timeliness of receipt of assistance.

Section 3: Explanatory tables and budgeted financial statements

Section 3 presents explanatory tables and budgeted financial statements which provide a comprehensive snapshot of agency finances for the 2012–13 budget year. It explains how budget plans are incorporated into the financial statements and provides further details of the reconciliation between appropriations and program expenses, movements in administered funds, special accounts and government Indigenous expenditure.

3.1 EXPLANATORY TABLES

3.1.1 Movement of administered funds between years Administered funds can be provided for a specified period, for example under annual Appropriation Acts. Funds not used in the specified period with the agreement of the Finance Minister may be moved to a future year. Table 3.1.1 shows the movement of administered funds approved between years.

Table 3.1.1: Movement of administered funds between years 2011–12 2012–13 2013–14 2014–15 2015–16 $’000 $’000 $’000 $’000 $’000 Outcome 1 Payments for the provision of legal aid —Legal Aid Commissions1 (11,031) 3,897 7,134 – – Total movement of administered funds (11,031) 3,897 7,134 – – Note: Figures displayed as a negative (–) represent a decrease in funds; positive figures reflect an increase i n funds. 1. The movement of funds is required for people smuggling, national security and drug-related cases in 2011 –12.

3.1.2 Special accounts Special accounts provide a means to set aside and record amounts used for specified purposes. Special accounts can be created by a Finance Minister’s Determination under the Financial Management and Accountability Act 1997 or under separate enabling legislation. Table 3.1.2 shows the expected additions (receipts) and reductions (payments) for each account used by the Department.

Table 3.1.2: Estimates of special account flows and balances Opening Closing balance Receipts Payments Adjustments balance 2012–13 2012–13 2012–13 2012–13 2012–13 2011– 2011–12 2011–12 2011–12 2011–12 12 Outcome $’000 $’000 $’000 $’000 $’000

Services for Other Entities and Trust Moneys— Attorney-General’s 1 7,269 6,583 7,614 – 6,238 Department Special Account FMA Act s 20 (A)1 1 17,208 5,645 15,584 – 7,269 Total special accounts 2012–13 Budget estimate 7,269 6,583 7,614 – 6,238 Total special accounts 2011–12 estimated actual 17,208 5,645 15,584 – 7,269 (A) = Administered. 1. The Department makes payments on behalf of organisations such as the ACT Supreme Court (Chief Justi ce’s salary). In these cases payments are made against moneys received from relevant organisations/jurisdi ctions. The Department also receives moneys and makes payments in relation to approved law enforcement initiatives under the Proceeds of Crime Act 2002. Payments are made from the Services for Other Entities an d Trust Moneys—Attorney-General’s Department Special Account.

3.1.3 Australian Government Indigenous expenditure The Department’s contribution to Australian Government Indigenous expenditure is summarised in Table 3.1.3. It relates to the delivery of law and justice programs to benefit Indigenous Australians and communities.

Table 3.1.3: Australian Government Indigenous expenditure (AGIE) Appropriations Bill Bill Special Total No. 1 No. 2 approp approp Other Total $’000 $’000 $’000 $’000 $’000 $’000 Program Outcome 1 Administered 2012–13 123,957 – – 123,957 – 123,957 1.5 Administered 2011–12 127,072 – – 127,072 – 127,072 1.5 Total AGIE 2012–13 123,957 – – 123,957 – 123,957 Total AGIE 2011–12 127,072 – – 127,072 – 127,072

3.2 BUDGETED FINANCIAL STATEMENTS

3.2.1 Differences in agency resourcing and financial statements There is no material difference between the agency resourcing and financial statements.

3.2.2 Analysis of budgeted financial statements Departmental Income statement The Department is budgeting for an operating deficit of $12.722m in 2011–12, excluding unfunded depreciation and amortisation expenses. This budgeted deficit primarily comprises adjustments to employee entitlements for changes to the bond rate and program expenditures carried over from the previous financial year. The Department is budgeting for break-even results for 2012–13 and 2013–14 with small surpluses budgeted for 2014–15 and 2015–16 relating to the implementation of revenue measures.

In 2012–13, the Department will receive operating appropriation funding of $200.998m compared to $207.276m in 2011–12 (see Table 3.2.1). The decrease in funding is primarily due to the commencement of the one-off 2.5% increase in the efficiency dividend in 2012–13 and the completion of funding to establish the Personal Property Securities Register.

The decrease in the estimated sale of goods and services revenues from 2011–12 to 2012–13 is primarily due to the completion of a number of one-off projects and cyclical changes in volumes of aviation and maritime industry security checks.

Balance sheet The Department’s net asset (equity) position for 2012–13 is estimated to be $120.324m, representing a decrease $11.605m from the 2011–12 revised budget net assets of $131.929m. The decrease in equity is due to the transfer of assets associated with the Personal Property Securities Register to the Insolvency and Trustee Service Australia and the operating deficit, offset by capital funding contributions by the government.

Administered Income statement The Department will administer payments of $502.318m on behalf of the government in 2012–13, a decrease of $11.494m from 2011–12 ($513.812m). The major changes in estimates are in personal benefits payments and concessional loan advances in relation to natural disasters where the forward estimates contain standing provisions subject to actual payments or advances that may required in those years.

Schedule of budgeted assets and liabilities The budgeted total administered assets position for the Department in 2012–13 is $574.361m compared to $463.153m in 2011–12. This is primarily due to an increase in receivables linked to additional loans being advanced for disaster restoration.

3.2.3 Budgeted financial statements tables Departmental Table 3.2.1: Comprehensive income statement (showing net cost of services) (for the period ended 30 June) Estimated Budget Forward Forward Forward actual estimate estimate estimate estimate 2011–12 2012–13 2013–14 2014–15 2015–16 $’000 $’000 $’000 $’000 $’000 EXPENSES Employee benefits 178,295 166,931 169,016 167,777 169,226 Supplier expenses 78,435 63,852 63,657 60,652 61,653 Depreciation and amortisation 22,010 21,060 23,367 21,562 21,094 Total expenses 278,740 251,843 256,040 249,991 251,973 LESS: OWN-SOURCE INCOME Own-source revenue Sale of goods and rendering of services 37,661 31,365 28,005 29,375 30,963 Total own-source revenue 37,661 31,365 28,005 29,375 30,963 Gains Other—resources received free of charge 348 352 356 360 360 Total gains 348 352 356 360 360 Total own-source income 38,009 31,717 28,361 29,735 31,323 Net cost of (contribution by) services 240,731 220,126 227,679 220,256 220,650 Revenue from government 207,276 200,998 206,244 200,893 202,741 Surplus (deficit) (20,733) (19,128) (21,254) (19,267) (18,799) Surplus (deficit) attributable to the Australian Government (33,455) (19,128) (21,435) (19,363) (17,909) OTHER COMPREHENSIVE INCOME Changes in asset revaluation surplus – – – – – Total other comprehensive income – – – – – Total comprehensive income (loss) (33,455) (19,128) (21,435) (19,363) (17,909) Total comprehensive income (loss) attributable to the Australian Government (33,455) (19,128) (21,435) (19,363) (17,909)

Note: Impact of net cash appropriation arrangements 2011–12 2012–13 2013–14 2014–15 2015–16 $’000 $’000 $’000 $’000 $’000 Total comprehensive income (loss) less depreciation/amortisation expenses previously funded through revenue appropriations (12,722) – – 267 1,253 Plus depreciation/amortisation expenses previously funded through revenue appropriations1 (20,733) (19,128) (21,435) (19,630) (19,162) Total comprehensive income (loss) as per the statement of comprehensive income (33,455) (19,128) (21,435) (19,363) (17,909) Prepared on Australian Accounting Standards basis. 1. These amounts vary from the depreciation and amortisation expenses shown in Table 3.2.1 above due to the inclusion of depreciation associated with the Auscheck function which is funded from cost-recovery reven ue.

Table 3.2.2: Budgeted departmental balance sheet (as at 30 June) Estimated Budget Forward Forward Forward actual estimate 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 1,600 1,600 1,600 1,600 1,600 Trade and other receivables 58,690 52,630 53,434 54,287 52,704 Total financial assets 60,290 54,230 55,034 55,887 54,304 Non-financial assets Land and buildings 90,305 89,749 82,697 75,804 68,865 Property, plant and equipment 11,695 5,332 4,582 5,810 14,180 Heritage and cultural assets 1,815 1,815 1,815 1,815 1,815 Intangibles 29,668 29,171 25,325 19,148 12,131 Inventories 58 58 58 58 58 Other 1,081 926 928 881 896 Total non-financial assets 134,622 127,051 115,405 103,516 97,945 Total assets 194,912 181,281 170,439 159,403 152,249 LIABILITIES Payables Suppliers 13,543 13,273 14,506 13,734 13,734 Other 2,513 2,269 2,284 2,093 2,093 Total payables 16,056 15,542 16,790 15,827 15,827 Interest-bearing liabilities Other 1,975 1,745 1,425 1,154 980 Total interest-bearing liabilities 1,975 1,745 1,425 1,154 980 Provisions Employee provisions 43,958 43,058 43,653 43,756 40,414 Other 994 612 363 368 384 Total provisions 44,952 43,670 44,016 44,124 40,798 Total liabilities 62,983 60,957 62,231 61,105 57,605 Net assets 131,929 120,324 108,208 98,298 94,644 EQUITY Parent entity interest Contributed equity 144,242 151,765 161,084 170,804 186,312 Reserves 19,124 19,124 19,124 19,124 19,124 Retained surplus (accumulated deficit) (31,437) (50,565) (72,000) (91,630) (110,792) Total parent entity interest 131,929 120,324 108,208 98,298 94,644 Total equity 131,929 120,324 108,208 98,298 94,644 Prepared on Australian Accounting Standards basis.

Table 3.2.3: Departmental statement of changes in equity—summary of moveme nt (budget year 2012–13) Asset Contributed Retained revaluation equity/ Total earnings reserve capital equity $’000 $’000 $’000 $’000 Opening balance as at 1 July 2012 Balance carried forward from previous period (31,437) 19,124 144,242 131,929 Adjustment for changes in accounting policies – – – – Adjusted opening balance (31,437) 19,124 144,242 131,929 Comprehensive income Surplus (deficit) for the period (19,128) – – (19,128) Total comprehensive income (19,128) – – (19,128) Transactions with owners Contributions by owners Equity injection – – 234 234 Departmental capital budget – – 7,289 7,289 Sub-total transactions with owners – – 7,523 7,523 Estimated closing balance as at 30 June 2013 (50,565) 19,124 151,765 120,324 Closing balance attributable to the Australian Government (50,565) 19,124 151,765 120,324 Prepared on Australian Accounting Standards basis.

Table 3.2.4: Budgeted departmental statement of cash flows (for the period ende d 30 June) Estimated Budget Forward Forward Forward actual estimate estimate estimate estimate 2011–12 2012–13 2013–14 2014–15 2015–16 $’000 $’000 $’000 $’000 $’000 OPERATING ACTIVITIES Cash received Sale of goods and rendering of services 35,486 31,684 28,292 29,321 30,574 Appropriations 254,115 206,254 204,879 199,619 204,539 Net GST received (22) 11 (31) 13 – Total cash received 289,579 237,949 233,140 228,953 235,113 Cash used Employees 174,630 167,831 168,421 167,674 172,568 Suppliers 81,074 63,997 62,319 61,012 61,292 Total cash used 255,704 231,828 230,740 228,686 233,860 Net cash from (used by) operating activities 33,875 6,121 2,400 267 1,253 INVESTING ACTIVITIES Cash used Purchase of property, plant and equipment 66,064 13,644 11,719 9,720 15,508 Total cash used 66,064 13,644 11,719 9,720 15,508 Net cash from (used by) investing activities (66,064) (13,644) (11,719) (9,720) (15,508) FINANCING ACTIVITIES Cash received Contributed equity 30,476 7,523 9,319 9,720 15,508 Total cash received 30,476 7,523 9,319 9,720 15,508 Cash used Repayments of borrowings 658 – – – – Equity transfer to the Official Public Account – – – 267 1,253 Total cash used 658 – – 267 1,253 Net cash from (used by) financing activities 29,818 7,523 9,319 9,453 14,255 Net increase (decrease) in cash held (2,371) – – – – Cash and cash equivalents at the beginning of the reporting period 3,971 1,600 1,600 1,600 1,600 Cash and cash equivalents at the end of the reporting period 1,600 1,600 1,600 1,600 1,600 Prepared on Australian Accounting Standards basis.

Table 3.2.5: Departmental capital budget statement Estimated Budget Forward Forward Forward actual estimate estimate estimate estimate 2011–12 2012–13 2013–14 2014–15 2015–16 $’000 $’000 $’000 $’000 $’000 NEW CAPITAL APPROPRIATIONS Capital budgets—Bill 1 (DCB) 22,419 7,289 7,868 9,720 15,508 Equity injections—Bill 2 8,057 234 1,451 – – Total new capital appropriations 30,476 7,523 9,319 9,720 15,508 Provided for: Purchase of non-financial assets 30,476 7,523 9,319 9,720 15,508 Total items 30,476 7,523 9,319 9,720 15,508 PURCHASE OF NON-FINANCIAL ASSETS Funded by capital appropriations1 17,457 234 1,451 – – Funded by capital appropriation—DCB2 40,994 10,289 7,868 9,720 15,508 Funded internally from departmental resources3 7,613 3,121 2,400 – – Total 66,064 13,644 11,719 9,720 15,508 RECONCILIATION OF CASH USED TO ACQUIRE ASSETS TO ASSET MOVEMENT TABLE Total purchases 66,064 13,644 11,719 9,720 15,508 Total cash used to acquire assets 66,064 13,644 11,719 9,720 15,508 Prepared on Australian Accounting Standards basis. DCB = departmental capital budget. 1. Includes both current and prior Bill 2, 4 and 6 appropriations and special capital appropriations. 2. Does not include annual finance lease costs. Includes purchases from current and previous years’ depart mental capital budgets. 3. Includes the following sources of funding: current and prior year Bill 1, 3 and 5 appropriations (excluding a mounts from the departmental capital budget), internally developed assets, section 31 relevant agency recei pts and proceeds from the sale of assets.

Table 3.2.6: Statement of asset movements (2012–13) Other property, Computer plant & Heritage software & Land Buildings equipment & cultural intangibles Total $’000 $’000 $’000 $’000 $’000 $’000 As at 1 July 2012 Gross book value 865 111,665 48,253 1,815 52,117 214,715 Accumulated depreciation/ amortisation and impairment – (22,225) (36,558) – (22,449) (81,232) Opening net book balance 865 89,440 11,695 1,815 29,668 133,483 CAPITAL ASSET ADDITIONS Estimated expenditure on new or replacement assets By purchase—appropriation equity1 – – – – 234 234 By purchase—appropriation ordinary annual services2 – 7,271 1,219 – 4,820 13,310 By purchase—other – – – – 100 100 Total additions – 7,271 1,219 – 5,154 13,644 Other movements Depreciation/amortisation expense – (7,827) (7,582) – (5,651) (21,060) Total other movements – (7,827) (7,582) – (5,651) (21,060) As at 30 June 2013 Gross book value 865 118,936 49,472 1,815 57,271 228,359 Accumulated depreciation/ (102,292 amortisation and impairment – (30,052) (44,140) – (28,100) ) Closing net book balance 865 88,884 5,332 1,815 29,171 126,067 Prepared on Australian Accounting Standards basis. 1. ‘Appropriation equity’ refers to equity injections or administered assets and liabilities appropriations provid ed through Appropriation Bill (No. 2) 2012–13. 2. ‘Appropriation ordinary annual services’ refers to funding provided through Appropriation Bill (No. 1) 2012–13 for depreciation and amortisation expenses, departmental capital budgets or other operational expe nses.

Administered

Table 3.2.7: Schedule of budgeted income and expenses administered on behalf of government (for the period ended 30 June) Estimated Budget Forward Forward Forward actual estimate estimate estimate estimate 2011–12 2012–13 2013–14 2014–15 2015–16 $’000 $’000 $’000 $’000 $’000 EXPENSES ADMINISTERED ON BEHALF OF GOVERNMENT Employee benefits 400 100 – – – Supplier expenses 23,262 21,198 22,195 22,490 21,855 Subsidies 2,430 2,468 2,533 2,581 2,630 Personal benefits 86,100 55,950 55,950 55,950 55,950 Grants 395,390 396,737 374,523 366,590 375,461 Depreciation and amortisation 2,803 2,533 2,559 2,104 1,482 Other expenses 3,427 23,332 3,426 1,006 1,006 Total expenses administered on behalf of government 513,812 502,318 461,186 450,721 458,384 LESS: OWN-SOURCE INCOME Own-source revenue Non-taxation revenue Sale of goods and rendering of services 6,064 5,593 10,204 9,928 9,883 Interest 1,144 2,415 10,266 10,289 8,952 Dividends 7,000 3,500 2,500 2,500 2,500 Other revenue 5,032 5,032 5,032 5,032 5,032 Total non-taxation revenue 19,240 16,540 28,002 27,749 26,367 Total own-source revenue administered on behalf of government 19,240 16,540 28,002 27,749 26,367 Total own-source income administered on behalf of government 19,240 16,540 28,002 27,749 26,367 Net cost of (contribution by) services 494,572 485,778 433,184 422,972 432,017 Surplus (deficit) (494,572) (485,778) (433,184) (422,972) (432,017) OTHER COMPREHENSIVE INCOME Changes in asset revaluation surplus – – – – – Total other comprehensive income – – – – – Total comprehensive income (loss) (494,572) (485,778) (433,184) (422,972) (432,017) Prepared on Australian Accounting Standards basis.

Table 3.2.8: Schedule of budgeted assets and liabilities administered on behalf o f government (as at 30 June) Estimated Budget Forward Forward Forward actual estimate estimate estimate estimate 2011–12 2012–13 2013–14 2014–15 2015–16 $’000 $’000 $’000 $’000 $’000 ASSETS Financial assets Receivables 54,864 172,724 186,327 169,596 150,017 Other investments 396,052 396,052 396,052 396,052 396,052 Other financial assets 3,030 27 29 29 28 Total financial assets 453,946 568,803 582,408 565,677 546,097 Non-financial assets Property, plant and equipment 5,776 5,339 3,867 2,664 2,090 Intangibles 401 192 – – – Other non-financial assets 3,030 27 29 29 28 Total non-financial assets 9,207 5,558 3,896 2,693 2,118 Total assets administered on behalf of government 463,153 574,361 586,304 568,370 548,215 LIABILITIES Payables Suppliers 837 765 802 813 791 Grants 15,507 14,108 14,208 14,300 14,524 Total payables 16,344 14,873 15,010 15,113 15,315 Total liabilities administered on behalf of government 16,344 14,873 15,010 15,113 15,315 Net assets/(liabilities) 446,809 559,488 571,294 553,257 532,900 Prepared on Australian Accounting Standards basis.

Table 3.2.9: Schedule of budgeted administered cash flows (for the period ended 30 June) Estimated Budget Forward Forward Forward actual estimate estimate estimate estimate 2011–12 2012–13 2013–14 2014–15 2015–16 $’000 $’000 $’000 $’000 $’000 OPERATING ACTIVITIES Cash received Sales of goods and rendering of services 6,752 5,584 9,717 9,938 9,930 Interest 1,144 1,606 5,099 4,907 4,156 Dividends 7,000 3,500 2,500 2,500 2,500 Other 6,624 5,096 5,032 5,032 5,032 Total cash received 21,520 15,786 22,348 22,377 21,618 Cash used Grant payments 403,582 395,136 374,423 366,498 375,237 Subsidies paid 2,430 2,468 2,533 2,581 2,630 Personal benefits 87,050 55,950 55,950 55,950 55,950 Suppliers 24,608 21,267 22,160 22,479 21,876 Employees 460 100 – – – Other 48 – – – – Total cash used 518,178 474,921 455,066 447,508 455,693 Net cash from (used by) operating activities (496,658) (459,135) (432,718) (425,131) (434,075) INVESTING ACTIVITIES Cash received Repayments of advances and loans 8,353 7,427 10,623 27,862 28,302 Total cash received 8,353 7,427 10,623 27,862 28,302 Cash used Purchase of property, plant and equipment 2,391 1,887 895 901 908 Advances and loans made 18,671 127,133 21,669 6,690 5,000 Total cash used 21,062 129,020 22,564 7,591 5,908 Net cash from (used by) investing activities (12,709) (121,593) (11,941) 20,271 22,394 FINANCING ACTIVITIES Net increase (decrease) in cash held (509,367) (580,728) (444,659) (404,860) (411,681) Cash and cash equivalents at the beginning of the reporting period 169 – – – – Cash from Official Public Account for: – Appropriations 530,363 603,500 478,414 455,896 462,617 Cash to Official Public Account for: – Appropriations (21,165) (22,772) (33,755) (51,036) (50,936) Cash and cash equivalents at the end of the reporting period – – – – – Prepared on Australian Accounting Standards basis.

Table 3.2.10: Schedule of administered capital budget Estimated Budget Forward Forward Forward actual estimate estimate estimate estimate 2011–12 2012–13 2013–14 2014–15 2015–16 $’000 $’000 $’000 $’000 $’000 NEW CAPITAL APPROPRIATIONS Capital budget—Bill 1 (ACB) 891 1,887 895 901 908 Administered assets and liabilities—Bill 2 18,671 127,133 21,669 6,690 5,000 Total new capital appropriations 19,562 129,020 22,564 7,591 5,908 Provided for: Purchase of non-financial assets 891 1,887 895 901 908 Other items 18,671 127,133 21,669 6,690 5,000 Total items 19,562 129,020 22,564 7,591 5,908 PURCHASE OF NON-FINANCIAL ASSETS Funded by capital appropriations1 1,500 – – – – Funded by capital appropriation—ACB1, 2 891 1,887 895 901 908 Total amount spent 2,391 1,887 895 901 908 RECONCILIATION OF CASH USED TO ACQUIRE ASSETS TO ASSET MOVEMENT TABLE Total accrual purchases 2,391 1,887 895 901 908 Total cash used to acquire assets 2,391 1,887 895 901 908 Prepared on Australian Accounting Standards basis. ACB = administered capital budget. 1. Includes both current and prior Bill 2, 4 and 6 appropriations and special capital appropriations. 2. Includes purchases from current and previous years’ administered capital budgets.

Table 3.2.11: Statement of administered asset movements (2012–13) Other property, Computer plant & software & equipment intangibles Total $’000 $’000 $’000 As at 1 July 2012 Gross book value 14,033 1,494 15,527 Accumulated depreciation/amortisation and impairment (8,257) (1,093) (9,350) Opening net book balance 5,776 401 6,177 CAPITAL ASSET ADDITIONS Estimated expenditure on new or replacement assets By purchase—appropriation ordinary annual services 1,887 – 1,887 Total additions 1,887 – 1,887 Other movements Depreciation/amortisation expense (2,324) (209) (2,533) Total other movements (2,324) (209) (2,533) As at 30 June 2013 Gross book value 15,920 1,494 17,414 Accumulated depreciation/amortisation and impairment (10,581) (1,302) (11,883) Closing net book balance 5,339 192 5,531 Prepared on Australian Accounting Standards basis.

3.2.4 Notes to the financial statements Basis of accounting The budgeted financial statements have been prepared on an accrual accounting basis, having regard to Statements of Accounting concepts, and in accordance with the Finance Minister’s Orders, Australian Accounting Standards and other authoritative pronouncements of the Australian Accounting Standards Board.

Departmental Revenue from government Amounts appropriated are recognised as revenue, except for certain amounts that relate to activities that are reciprocal in nature, in which case revenue is recognised only when it has been earned. Appropriations receivable are recognised at their nominal amounts.

Other revenue Revenue from rendering of specific services is recognised by reference to the stage of completion of contracts or other agreements.

Employee expenses Employee expenses consist of salaries, leave entitlements, redundancy expenses, superannuation and non-salary benefits.

Supplier expenses Supplier expenses consist of administrative costs, consultants’ fees, travel expenses and property operating expenses.

Leases A distinction is made between finance leases, which effectively transfer from the lessor to the lessee substantially all the risks and benefits incidental to ownership of leased non-current assets, and operating leases under which the lessor effectively retains substantially all such risks and benefits.

Where a non-current asset is acquired by means of a finance lease, the asset is capitalised at the lower of fair value or the present value of minimum lease payments at the inception of the lease and a liability recognised for the same amount. Leased assets are amortised over the period of the lease. Lease payments are allocated between the principal component and the interest expense.

Operating lease payments are charged to the income statement on a basis that is representative of the pattern of benefits derived from the lease assets.

Depreciation and amortisation Computer equipment is depreciated using the declining-balance method while, for all other plant and equipment, the straight-line method of depreciation is applied. Leasehold improvements are amortised on a straight-line basis over the lesser of the estimated life of the improvements or the unexpired period of the lease.

Depreciation/amortisation rates (useful lives) are reviewed at each balance date and necessary adjustments are recognised.

Cash Cash includes notes and coins held and any deposits held at call with a bank or other financial institution.

Asset valuation The Department has adopted fair value as a basis for valuing its leasehold improvements and plant and equipment. Valuation is conducted with sufficient frequency to ensure that the carrying amounts of assets do not differ materially from the assets’ fair values as at the reporting date.

Asset recognition threshold Purchases of property, plant and equipment are recognised initially at cost in the balance sheet, except for purchases costing less than $2,000, which are expensed in the year of acquisition.

Receivables A provision is raised for any doubtful debts based on a review of the collectability of all outstanding accounts as at year-end.

Bad debts are written off during the year in which they are identified.

Provisions and payables Provisions and payables represent liabilities for miscellaneous accruals and employee benefits, including accrued salary and leave entitlements, provisions for making-good leased premises and lease incentives. No provision for sick leave is required as all sick leave is non-vesting.

Administered Revenue All administered revenues are revenues relating to the core operating activities performed by the Department on behalf of the Australian Government. Levies, fees and fines revenue is recognised when it is probable that the economic benefit comprising the consideration will flow to the entity.

Revenue from the rendering of service is recognised on delivery of that service to customers. Interest revenue is recognised on a time proportionate basis that takes into account the effective yield on the relevant asset. Dividend revenue is recognised when the right to receive a dividend has been established.

Assets Administered financial assets are made up of receivables and investments. The administered investments are recorded at fair value. Administered non-financial assets comprise land and buildings; infrastructure, plant and equipment; intangibles; heritage and cultural assets; inventories; and prepayments. The accounting policies in relation to non-financial assets are the same as for departmental non-financial assets.

Liabilities Administered liabilities are made up of employee provisions, creditors for suppliers, grants and subsidy arrangements.