AUSTRALIAN FINANCIAL SECURITY AUTHORITY

Section 1: Entity overview and resources

1.1 STRATEGIC DIRECTION STATEMENT

The Australian Financial Security Authority’s (AFSA’s) purpose is to provide improved and equitable financial outcomes for consumers, business and the community through the application of bankruptcy and personal property securities laws, regulation of personal insolvency practitioners, and trustee services.

Our goals We deliver our purpose through our goals. Our four goals are the rationale for everything we do and help us to achieve government objectives. Our goals shape our business priorities, measures and strategies, which in turn inform the planning, delivery, monitoring and improvement of processes for all our work.

Goal 1: Foster confidence We build strong client and stakeholder confidence and uphold the integrity of the personal insolvency and securities programs we administer.

Goal 2: Deliver value We operate in a commercially sound way to support equitable financial outcomes for our clients. This includes maximising outcomes to creditors and other stakeholders in a timely manner.

Goal 3: Effective services We continually improve our registration and transactional services. This includes improving our self-service options to ensure our processes and services are efficient, scalable, consistent and secure.

Goal 4: Quality information We deliver accessible, accurate and consistent information services, empowering clients and stakeholders to make informed decisions.

Our priority areas In 2016–17, AFSA will focus on three priority areas: our capabilities, our service commitments and our stakeholders.

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Our capabilities Our capabilities equip us to deliver our goals, through high-quality personal insolvency and trustee, regulation and enforcement, and personal property securities services.

We have financial and legal capabilities in the areas of statutory interpretation, trust law, compliance and enforcement, as well as in the practical application of fiduciary obligations. These capabilities will allow us to continue to manage legal and financial complexity in the services we deliver, fostering confidence and enabling delivery of value in a commercially sound way.

Our process and administration capability is a key component of our continuous improvement program. This capability will enable us to deliver efficient, integrated and effective client-centred services and support quality information products into the future.

Data analysis strengthens many of our activities. It will support our provision of services and regulatory activities with the aims of removing any unnecessary burden on our stakeholders and meeting their needs and preferences. It will also enhance and inform our performance reporting.

We have a strong focus on providing effective services and quality information by developing our digital service delivery to enable clients to access our services at a time and place convenient to them. This focus will remain throughout 2016–17 to 2019–20 as we continue to build our digital presence.

Our service commitments Our service-oriented culture is articulated through our service commitments of professionalism, responsiveness, easy access to services and accountability. Our service commitments support the delivery of our goals through high-quality personal insolvency and trustee, regulation and enforcement, and personal property securities services.

Our stakeholders The services we deliver to our clients are informed and supported by close engagement with our stakeholders, including other government agencies, professional associations, industry bodies and peak bodies, and through our international relationships. Australian Financial Security Authority

Our formal engagement program enables stakeholder feedback to be integrated into service delivery design.

We maintain environmental awareness of better practice through close engagement with key service delivery partners and international associations.

1.2 ENTITY RESOURCE STATEMENT

Table 1.1 shows the total funding from all sources available to AFSA for its operations and to deliver programs and services on behalf of the government. The table summarises how resources will be applied by administered (on behalf of the government or the public) and departmental (for the entity’s operations) classification.

Table 1.1 is prepared on a resourcing (appropriations and cash available) basis, while the outcome expenses table in section 2 and the financial statements in section 3 are prepared on an accrual basis.

Table 1.1: Entity resource statement—Budget estimates for 2016– 17 as at Budget May 2016 2015–16 Estimated 2016–17 actual Estimate $’000 $’000 DEPARTMENTAL Annual appropriations—ordinary annual services(a) Prior year appropriations available(b) 58,047 51,662 Departmental appropriation 49,823 50,158 s 74 retained revenue receipts(c) 49,439 49,497 Departmental capital budget(d) 3,418 3,529 Total departmental resourcing 160,727 154,846 ADMINISTERED Total administered special appropriations(e) 1,000 1,000 Special accounts(f) Opening balance 95,792 79,696 Non-appropriation receipts 36,799 36,438 Total special accounts 132,591 116,134 Total administered resourcing 133,591 117,134 Total net resourcing for entity 294,318 271,980

2015–16 2016–17 Average staffing level (number) 487 487 Prepared on a resourcing (appropriations and cash available) basis. Note: All figures are GST exclusive and may not match figures in the cash flow statement. (a) Appropriation Bill (No. 1) 2016–17. (b) Estimated adjusted balance carried forward from previous year. (c) Estimated retained revenue receipts under section 74 of the Public Governance, Performance and Accountability Act 2013.

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(d) Departmental capital budgets are not separately identified in Appropriation Bill (No. 1) and form part of ordinary annual services items. See Table 3.5 for further details. For accounting purposes, this amount is designated as ‘contributions by owners’. (e) For further information on special appropriations, see Budget Paper No. 4: Agency Resourcing. See also Table 2.1 for further information on outcome and program expenses broken down by various funding sources, such as annual appropriations, special appropriations and special accounts. (f) Excludes ‘special public money’ held in an account such as a Services for Other Entities and Trust Moneys special account. For further information on special accounts, see Budget Paper No. 4: Agency Resourcing. See also Table 2.1 for further information on outcome and program expenses broken down by various funding sources, such as annual appropriations, special appropriations and special accounts.

1.3 BUDGET MEASURES

Measures announced in the 2015–16 Mid-Year Economic and Fiscal Outlook (MYEFO) and other measures not previously reported in a portfolio statement are summarised in Part 2 of Table 1.2.

Table 1.2: Entity 2016–17 Budget measures Part 1: Measures announced since the 2015–16 MYEFO AFSA has no new post-MYEFO measures.

Part 2: MYEFO measures and other measures not previously reported in a portfolio statement 2015–16 2016–17 2017–18 2018–19 2019–20 Program $’000 $’000 $’000 $’000 $’000 Expense measures National Innovation and Science Agenda—improving bankruptcy and insolvency laws(a) 1.1 Departmental expenses – – – – – Public Sector Savings— Enterprise Resource Planning Systems(b) 1.1 Departmental expenses – – (23) (28) (28) Public Sector Superannuation Accumulation Plan administration fees(c) 1.1 Departmental expenses (43) (43) (43) (43) (43) Total expense measures (43) (43) (66) (71) (71) Capital measures AttorneyGeneral’s—one-off efficiency savings to specific agencies 1.2 Departmental capital (3,000) (2,421) – – – Total capital measures (3,000) (2,421) – – – Prepared on a Government Finance Statistics (fiscal) basis. Figures displayed as a negative represent a decrease in funds, and figures displayed as a positive represent an increase in funds. (a) The lead entity for this measure is the Department of the Treasury. The full measure description and package details appear in the 2015–16 MYEFO under the Treasury portfolio. (b) This is a cross-portfolio measure that was published in Budget Paper No. 2 2015–16. The lead entity is the Department of Finance. (c) This is a cross-portfolio measure that was published in the 2014–15 MYEFO. The lead entity is the Department of Finance. Australian Financial Security Authority

Section 2: Outcomes and planned performance

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 entities achieve the intended results of their outcome statements. Entities are required to identify the programs that contribute to government outcomes over the budget and forward years.

AFSA’s outcome is described below together with its related programs.

Note: From 1 July 2015, performance reporting requirements in the Portfolio Budget Statements sit alongside the requirements under the enhanced Commonwealth performance framework. It is anticipated that the performance criteria described in Portfolio Budget Statements will be read with broader information provided in an entity’s corporate plans and annual performance statements— included in annual reports from October 2016—to provide the entity’s complete performance story.

2.1 BUDGETED EXPENSES AND PERFORMANCE FOR OUTCOME 1

Outcome 1: Improved and equitable financial outcomes for consumers, business and the community through application of bankruptcy and personal property securities laws, regulation of personal insolvency practitioners, and trustee services

Budgeted expenses for Outcome 1 Table 2.1 shows how much AFSA intends to spend (on an accrual basis) on achieving Outcome 1, broken down by program and by administered and departmental funding sources.

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Table 2.1: Budgeted expenses for Outcome 1 2015–16 2017–18 2018–19 2019–20 Estimated 2016–17 Forward Forward Forward actual Budget estimate estimate estimate $’000 $’000 $’000 $’000 $’000 Program 1.1: Personal Insolvency and Trustee Services Administered expenses Special appropriations Public Governance, Performance and Accountability Act 2013 s 77 500 500 500 500 500 Bankruptcy Act 1966 500 500 500 500 500 Special accounts Confiscated Assets Account 51,085 51,060 33,200 32,989 32,989 Confiscated Assets Special Account 11 11 11 3 – Common Investment Fund Equalisation Account 1,799 1,438 1,478 1,523 1,568 Administered total 53,895 53,509 35,689 35,515 35,557 Departmental expenses Departmental appropriation 49,823 50,158 51,312 52,560 53,889 s 74 retained revenue receipts(a) 3,529 3,587 3,659 3,732 3,732 Expenses not requiring appropriation in the budget year(b) 6,116 5,421 4,854 4,429 4,229 Departmental total 59,468 59,166 59,825 60,721 61,850 Total expenses for program 1.1 113,363 112,675 95,514 96,236 97,407 Program 1.2: Operation of a National Register of Security Interests in Personal Property Departmental expenses s 74 retained revenue receipts(a) 41,513 42,682 44,022 46,535 46,535 Expenses not requiring appropriation in the budget year(b) 162 162 162 162 162 Total expenses for program 1.2 41,675 42,844 44,184 46,697 46,697 Outcome 1 totals by appropriation type Administered expenses Special appropriations 1,000 1,000 1,000 1,000 1,000 Special accounts 52,895 52,509 34,689 34,515 34,557 Administered total 53,895 53,509 35,689 35,515 35,557 Departmental expenses Departmental appropriation 49,823 50,158 51,312 52,560 53,889 s 74 retained revenue receipts 45,042 46,269 47,681 50,267 50,267 Expenses not requiring appropriation in the budget year 6,278 5,583 5,016 4,591 4,391 Departmental total 101,143 102,010 104,009 107,418 108,547 Total expenses for Outcome 1 155,038 155,519 139,698 142,933 144,104

2015–16 2016–17 Average staffing level (number) 487 487 Note: Departmental appropriation splits and totals are indicative estimates and may change in the course of the budget year as government priorities change. Australian Financial Security Authority

(a) Estimated expenses incurred in relation to receipts retained under section 74 of the Public Governance, Performance and Accountability Act 2013. (b) Expenses not requiring appropriation in the budget year are made up of depreciation and amortisation expenses, make-good expenses and audit fees.

Performance criteria for Outcome 1 Table 2.2 details the performance criteria for each program associated with Outcome 1. It also summarises how each program is delivered.

Table 2.2: Performance criteria for Outcome 1 Outcome 1: Improved and equitable financial outcomes for consumers, business and the community through application of bankruptcy and personal property securities laws, regulation of personal insolvency practitioners, and trustee services Program 1.1: Personal Insolvency and Trustee Services We offer unique and specific expertise in personal insolvency and trustee services which are relied upon by the community, business sectors and government. We have strong industry experience in the administration of insolvent estates. This allows us to uphold the integrity of the personal insolvency system, while delivering value to creditors by exercising our powers in a commercially sound way. Our better practice trustee services are demonstrated by our collaborative approach, depth of industry-specific knowledge and strong stakeholder relationships. Delivery Our expertise in personal insolvency and trustee services enables us to provide a range of comprehensive and integrated services, including: acting as trustee for personal insolvency administrations acting as trustee pursuant to court orders, particularly under the proceeds of crime legislation acting as special trustee for government providing practical information about options to deal with unmanageable debt preserving the security and integrity of a large volume of personal insolvency records regulating personal insolvency practitioners investigating alleged Bankruptcy Act offences and where appropriate referring for prosecution. Performance information Year Performance criteria Targets 2015–16 Ensure compliance by debtors, New applications are assessed and registered in a creditors, insolvency timely manner in order to maintain the integrity of practitioners and others with the the National Personal Insolvency Index. requirements of the Bankruptcy The National Personal Insolvency Index is Act and associated legislation current and accurate, supporting commercial through information, registry and decision-making. enforcement functions Regulate personal insolvency Target inspection program is achieved. practitioners Complaints are handled within 60 days. Statutory reviews are completed within 60 days. Targeted information is produced to assist stakeholders to comply with the Bankruptcy Act. Areas of non-compliance are identified.

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Administer, as the Official Quality reports are issued as required by the Trustee, personal Bankruptcy Act and standards. administrations when registered Dividends are paid in a timely manner. practitioners are not appointed Areas of non-compliance are identified and potential offences are referred. Personal insolvencies are managed efficiently and effectively, with appropriate investigations and quality outcomes.

Program 1.1: Personal Insolvency and Trustee Services (continued) Performance information Year Performance criteria Targets 2015–16 Act as a special trustee for Action is taken to identify, locate, secure and achieve (continued) Australian Government entities control or dispose of property in accordance with pursuant to court orders, timeframes in court orders, or in any event as soon particularly by locating, as practicable after receipt of court orders. controlling and selling property The Confiscated Assets Account is maintained in under the proceeds of crime accordance with the relevant requirements. legislation 2016–17 Foster confidence Stakeholder meetings and focus groups are held regularly. Action is taken in response to feedback obtained from industry meetings and surveying tools. AFSA achieves compliance with the Regulator Performance Framework, including achievement of our risk-based Insolvency Practitioner Compliance Program. 80% of complaints are actioned within 60 days. AFSA receives fewer than three Ombudsman section 12 notices with comments or suggestions per year. 95% of Bankruptcy Act offence referrals are assessed within five business days. 90% of Bankruptcy Act investigations are completed within 12 months. Quantifiable actions are taken to achieve high levels of compliance by bankrupts, debtors and creditors. Deliver value At least 10% of active administered matters are closed each month. 70% of dividends are paid within two months of receipt of funds. Fees accurately reflect the cost of efficient and effective services. Effective services 95% of insolvency-related applications are assessed and registered within five business days. Registers and digital services are delivered with a high level of availability. Clients are provided with various channels to provide feedback to improve services. Quality information AFSA continuously improves accessibility, availability, consistency and quality of information services. Feedback is sought from stakeholders and clients on the usefulness of information. Action is taken in response to feedback obtained. Australian Financial Security Authority

2017–18 and Same as for 2016–17. Same as for 2016–17. beyond Purpose Provide improved and equitable financial outcomes for consumers, business and the community through application of bankruptcy laws, regulation of personal insolvency practitioners, and trustee services. Program 1.2: Operation of a National Register of Security Interests in Personal Property Our expertise in combining industry knowledge, legal and financial acumen, technology and a client-centred approach supports the operation of the personal property securities system in Australia. The application of this expertise enables us to deliver innovative solutions in response to the needs of our clients and stakeholders. Our working knowledge of personal property securities law and experience in making informed administrative decisions assist in fostering confidence in the personal property securities system, thereby supporting financial risk management and access to finance within the economy. Delivery Through our specific expertise in personal property securities we deliver a range of services, including: making administrative decisions to resolve disputes between secured parties and grantors exercising discretion in response to applications made under the Personal Properties Securities Act (PPS Act) providing sector-specific information to assist users to effectively use the Personal Property Securities Register (PPS Register) preserving the security and integrity of a large volume of economically significant registration data investigating alleged PPS Act offences and where appropriate referring for prosecution. Performance information Year Performance criteria Targets 2015–16 Maintain an accessible and The PPS Register is easily and readily accessible. secure online PPS Register AFSA has regular engagement with relevant industry bodies. Clients are satisfied with the information and registry services, as measured by periodic client feedback mechanisms. Provide assistance and Clients are satisfied with information, as measured by information in relation to the periodic client feedback mechanisms. PPS Register Information products are delivered to assist different audiences. 2016–17 Foster confidence Stakeholder meetings and focus groups are held regularly. Action is taken in response to feedback obtained from industry meetings and surveying tools. 95% of PPS Act offence referrals are assessed within five business days. 90% of PPS Act investigations are completed within 12 months. Deliver value Fees accurately reflect the cost of efficient and effective services. Effective services Registers and digital services are delivered with a high level of availability. Clients are provided with various channels to provide feedback to improve services.

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Quality information AFSA continuously improves accessibility, availability, consistency and quality of information services. Feedback is sought from stakeholders and clients on the usefulness of information. Action is taken in response to feedback obtained. 2017–18 Same as for 2016–17. Same as for 2016–17. and beyond Purpose Provide improved and equitable financial outcomes for consumers, business and the community through application of personal property securities laws.

Section 3: Budgeted financial statements

This section presents budgeted financial statements that provide a comprehensive snapshot of entity finances for the 2016–17 budget year, including the impact of budget measures and resourcing.

3.1 DIFFERENCES BETWEEN ENTITY RESOURCING AND FINANCIAL STATEMENTS

There is no material difference between the entity resourcing and financial statements.

3.2 ANALYSIS OF BUDGETED FINANCIAL STATEMENTS

Departmental There are two key items impacting on the departmental financial statements that create variances between years.

The 2016–17 Budget provides a demand-driven funding model for AFSA through a resource agreement agreed with the Department of Finance. The resource agreement is based on a continuation of trends in levels of personal insolvency activity evident in the last 10 financial years. Under the resource agreement, the financial impacts in the forward years will change according to emerging trends in numbers of personal insolvencies.

Since January 2012, AFSA has administered the national Personal Property Securities (PPS) Register under the Personal Property Securities Act. AFSA retains the fees and charges raised to fund operational costs of the PPS function. Fees and charges include allowances for the future replacement of PPS assets. AFSA recovers fees and charges for capital expenditure to improve the service delivery capability as requested by stakeholders. These amounts result in surpluses in 2016–17 and the forward years (see Table 3.1). Australian Financial Security Authority

Administered Changes in revenue over the budget and forward years are in recognition of changes in bankruptcy workloads.

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3.3 BUDGETED FINANCIAL STATEMENTS TABLES

Table 3.1: Comprehensive income statement (showing net cost of services) for the period ended 30 June 2015–16 2017–18 2018–19 2019–20 Estimated 2016–17 Forward Forward Forward actual Budget estimate estimate estimate $’000 $’000 $’000 $’000 $’000 EXPENSES Employee benefits 51,834 53,062 53,869 54,114 55,041 Suppliers 35,086 35,709 37,579 40,749 41,151 Depreciation and amortisation 14,199 13,215 12,537 12,531 12,331 Finance costs 24 24 24 24 24 Total expenses 101,143 102,010 104,009 107,418 108,547 LESS: OWN-SOURCE INCOME Own-source revenue Rendering of services 49,107 49,182 49,248 51,151 51,151 Other revenue 642 625 631 637 637 Total own-source revenue 49,749 49,807 49,879 51,788 51,788 Total own-source income 49,749 49,807 49,879 51,788 51,788 Net cost of (contribution by) services 51,394 52,203 54,130 55,630 56,759 Revenue from government 49,823 50,158 51,312 52,560 53,889 Surplus (deficit) attributable to the Australian Government (1,571) (2,045) (2,818) (3,070) (2,870) OTHER COMPREHENSIVE INCOME Changes in asset revaluation surplus – – – – – Total other comprehensive income – – – – – Total comprehensive income (loss) (1,571) (2,045) (2,818) (3,070) (2,870) Total comprehensive income (loss) attributable to the Australian Government (1,571) (2,045) (2,818) (3,070) (2,870)

Note: Impact of net cash appropriation arrangements 2015–16 2016–17 2017–18 2018–19 2019–20 $’000 $’000 $’000 $’000 $’000 Total comprehensive income (loss) excluding depreciation/amortisation expenses previously funded through revenue appropriations 4,373 3,204 1,864 1,187 1,187 Less depreciation/amortisation expenses previously funded through revenue appropriations 5,944 5,249 4,682 4,257 4,057 Total comprehensive income (loss) as per the statement of comprehensive income (1,571) (2,045) (2,818) (3,070) (2,870) Prepared on Australian Accounting Standards basis. Australian Financial Security Authority

Table 3.2: Budgeted departmental balance sheet (as at 30 June) 2015–16 2017–18 2018–19 2019–20 Estimated 2016–17 Forward Forward Forward actual Budget estimate estimate estimate $’000 $’000 $’000 $’000 $’000 ASSETS Financial assets Cash and cash equivalents 1,626 1,626 1,626 1,626 1,626 Trade and other receivables 64,835 58,459 47,691 51,629 55,472 Total financial assets 66,461 60,085 49,317 53,255 57,098 Non-financial assets Land and buildings 3,817 4,203 4,671 4,110 7,519 Property, plant and equipment 5,583 6,172 6,739 7,470 6,987 Intangibles 20,896 25,787 36,593 33,381 27,735 Other non-financial assets 1,241 1,286 1,355 1,452 1,452 Total non-financial assets 31,537 37,448 49,358 46,413 43,693 Total assets 97,998 97,533 98,675 99,668 100,791 LIABILITIES Payables Suppliers 7,136 7,282 7,523 7,872 7,886 Other payables 1,732 1,766 1,787 1,793 1,816 Total payables 8,868 9,048 9,310 9,665 9,702 Provisions Employee provisions 10,341 10,609 10,767 10,824 11,008 Other provisions 895 919 943 967 991 Total provisions 11,236 11,528 11,710 11,791 11,999 Total liabilities 20,104 20,576 21,020 21,456 21,701 Net assets 77,894 76,957 77,655 78,212 79,090 EQUITY Parent entity interest Contributed equity (5,039) (3,931) (415) 3,212 6,960 Reserves 1,861 1,861 1,861 1,861 1,861 Retained surplus (accumulated deficit) 81,072 79,027 76,209 73,139 70,269 Total parent entity interest 77,894 76,957 77,655 78,212 79,090 Total equity 77,894 76,957 77,655 78,212 79,090 Prepared on Australian Accounting Standards basis.

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Table 3.3: Departmental statement of changes in equity—summary of movement (budget year 2016–17) Asset Contribute Retained revaluation d equity/ Total earnings reserve capital equity $’000 $’000 $’000 $’000 Opening balance as at 1 July 2016 Balance carried forward from previous period 81,072 1,861 (5,039) 77,894 Adjustment for changes in accounting policies – – – – Adjusted opening balance 81,072 1,861 (5,039) 77,894 Comprehensive income Surplus (deficit) for the period (2,045) – – (2,045) Total comprehensive income (2,045) – – (2,045) Transactions with owners Distributions to owners Returns of capital Distribution of equity – – (2,421) (2,421) Contributions by owners Departmental capital budget – – 3,529 3,529 Sub-total transactions with owners – – 1,108 1,108 Estimated closing balance as at 30 June 2017 79,027 1,861 (3,931) 76,957 Closing balance attributable to the Australian Government 79,027 1,861 (3,931) 76,957 Prepared on Australian Accounting Standards basis. Australian Financial Security Authority

Table 3.4: Budgeted departmental statement of cash flows (for the period ended 30 June) 2015–16 2017–18 2018–19 2019–20 Estimated 2016–17 Forward Forward Forward actual Budget estimate estimate estimate $’000 $’000 $’000 $’000 $’000 OPERATING ACTIVITIES Cash received Appropriations 63,278 73,352 78,133 63,253 64,636 Sale of goods and rendering of services 49,729 49,173 49,239 50,905 51,151 Other 332 315 321 327 327 Total cash received 113,339 122,840 127,693 114,485 116,114 Cash used Employees 51,017 52,760 53,689 54,053 54,833 Suppliers 34,456 35,298 37,097 40,187 40,827 s 74 retained revenue receipts transferred to Official Public Account 18,843 16,809 16,045 14,383 14,591 Total cash used 104,316 104,867 106,831 108,623 110,251 Net cash from (used by) operating activities 9,023 17,973 20,862 5,862 5,863 INVESTING ACTIVITIES Cash used Purchase of property, plant and equipment and intangibles 11,441 19,081 24,378 9,489 9,611 Total cash used 11,441 19,081 24,378 9,489 9,611 Net cash from (used by) investing activities (11,441) (19,081) (24,378) (9,489) (9,611) FINANCING ACTIVITIES Cash received Contributed equity 5,418 3,529 3,516 3,627 3,748 Total cash received 5,418 3,529 3,516 3,627 3,748 Cash used Other 3,000 2,421 – – – Total cash used 3,000 2,421 – – – Net cash from (used by) financing activities 2,418 1,108 3,516 3,627 3,748 Net increase (decrease) in cash held – – – – – Cash and cash equivalents at the beginning of the reporting period 1,626 1,626 1,626 1,626 1,626 Cash and cash equivalents at the end of the reporting period 1,626 1,626 1,626 1,626 1,626 Prepared on Australian Accounting Standards basis.

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Table 3.5: Departmental capital budget statement (for the period ended 30 June) 2015–16 2017–18 2018–19 2019–20 Estimated 2016–17 Forward Forward Forward actual Budget estimate estimate estimate $’000 $’000 $’000 $’000 $’000 NEW CAPITAL APPROPRIATIONS Capital budget—Bill 1 (DCB) 3,418 3,529 3,516 3,627 3,748 Total new capital appropriations 3,418 3,529 3,516 3,627 3,748 Provided for: Purchase of non-financial assets 3,418 3,529 3,516 3,627 3,748 Total items 3,418 3,529 3,516 3,627 3,748 PURCHASE OF NON-FINANCIAL ASSETS Funded by capital appropriation—DCB(a) 5,418 3,529 3,516 3,627 3,748 Funded internally from departmental resources(b) 6,023 15,552 20,862 5,862 5,863 Total purchases of non-financial assets 11,441 19,081 24,378 9,489 9,611 RECONCILIATION OF CASH USED TO ACQUIRE ASSETS TO ASSET MOVEMENT TABLE Total purchases 11,441 19,081 24,378 9,489 9,611 Total cash used to acquire assets 11,441 19,081 24,378 9,489 9,611 Prepared on Australian Accounting Standards basis. DCB = departmental capital budget. (a) Does not include annual finance lease costs. Includes purchases from current and previous years’ DCBs. (b) Includes funding from current Bill 1 and prior year Act 1 appropriations (excluding amounts from the DCB) and section 74 retained revenue receipts. Australian Financial Security Authority

Table 3.6: Statement of asset movements (budget year 2016–17) Other property, Computer plant & software & Buildings equipment intangibles Total $’000 $’000 $’000 $’000 As at 1 July 2016 Gross book value 6,386 10,476 70,303 87,165 Accumulated depreciation/amortisation and impairment (2,569) (4,893) (49,407) (56,869) Opening net book balance 3,817 5,583 20,896 30,296 CAPITAL ASSET ADDITIONS Estimated expenditure on new or replacement assets By purchase—appropriation ordinary annual services(a) 852 1,733 16,496 19,081 Total additions 852 1,733 16,496 19,081 Other movements Depreciation/amortisation expense (466) (1,144) (11,605) (13,215) Total other movements (466) (1,144) (11,605) (13,215) As at 30 June 2017 Gross book value 7,238 12,209 86,799 106,246 Accumulated depreciation/amortisation and impairment (3,035) (6,037) (61,012) (70,084) Closing net book balance 4,203 6,172 25,787 36,162 Prepared on Australian Accounting Standards basis. (a) ‘Appropriation ordinary annual services’ refers to funding provided through Appropriation Bill (No. 1) 2016–17 for depreciation and amortisation expenses, departmental capital budgets or other operational expenses.

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Table 3.7: Schedule of budgeted income and expenses administered on behalf of government (for the period ended 30 June) 2015–16 2017–18 2018–19 2019–20 Estimated 2016–17 Forward Forward Forward actual Budget estimate estimate estimate $’000 $’000 $’000 $’000 $’000 EXPENSES Refunds of administered revenues 1,000 1,000 1,000 1,000 1,000 Special accounts 52,895 52,509 34,689 34,515 34,557 Total expenses administered on behalf of government 53,895 53,509 35,689 35,515 35,557 LESS: OWN-SOURCE INCOME Taxation revenue Charges 30,244 30,847 31,464 32,093 32,093 Total taxation revenue 30,244 30,847 31,464 32,093 32,093 Non-taxation revenue Fees and fines 57,603 58,054 58,515 58,986 58,986 Interest 1,799 1,438 1,478 1,523 1,568 Total non-taxation revenue 59,402 59,492 59,993 60,509 60,554 Total own-source income administered on behalf of government 89,646 90,339 91,457 92,602 92,647 Net cost of (contribution by) services (35,751) (36,830) (55,768) (57,087) (57,090) Surplus (deficit) 35,751 36,830 55,768 57,087 57,090 Total comprehensive income (loss) 35,751 36,830 55,768 57,087 57,090 Prepared on Australian Accounting Standards basis. Australian Financial Security Authority

Table 3.8: Schedule of budgeted assets and liabilities administered on behalf of government (as at 30 June) 2015–16 2017–18 2018–19 2019–20 Estimated 2016–17 Forward Forward Forward actual Budget estimate estimate estimate $’000 $’000 $’000 $’000 $’000 ASSETS Financial assets Cash and cash equivalents 80,030 63,959 65,748 67,756 69,767 Taxation receivables 15,835 15,835 15,835 15,835 15,835 Other receivables 50,180 50,721 49,973 50,511 50,511 Total financial assets 146,045 130,515 131,556 134,102 136,113 Total assets administered on behalf of government 146,045 130,515 131,556 134,102 136,113 LIABILITIES Payables Other payables 135 135 135 135 135 Total payables 135 135 135 135 135 Total liabilities administered on behalf of government 135 135 135 135 135 Net assets/(liabilities) 145,910 130,380 131,421 133,967 135,978 Prepared on Australian Accounting Standards basis.

Table 3.9: Schedule of budgeted administered cash flows (for the period ended 30 June) 2015–16 2017–18 2018–19 2019–20 Estimated 2016–17 Forward Forward Forward actual Budget estimate estimate estimate $’000 $’000 $’000 $’000 $’000 OPERATING ACTIVITIES Cash received Charges 30,244 30,847 31,464 32,093 32,093 Interest 1,799 1,438 1,478 1,523 1,568 Fees and fines 58,445 57,513 59,263 58,448 58,986 Total cash received 90,488 89,798 92,205 92,064 92,647 Cash used Refunds of administered revenues 1,000 1,000 1,000 1,000 1,000 Special account payments 52,895 52,509 34,689 34,515 34,557 Total cash used 53,895 53,509 35,689 35,515 35,557 Net cash from (used by) operating activities 36,593 36,289 56,516 56,549 57,090 Net increase (decrease) in cash held 36,593 36,289 56,516 56,549 57,090 Cash and cash equivalents at the beginning of the reporting period 96,126 80,030 63,959 65,748 67,756 Cash from Official Public Account for: Refunds of administered revenues (Finance—whole of government) 1,000 1,000 1,000 1,000 1,000 Cash to Official Public Account for: Transfers to other entities (Finance—whole of government) (53,689) (53,360) (55,727) (55,541) (56,079) Cash and cash equivalents at the end of the reporting period 80,030 63,959 65,748 67,756 69,767

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Prepared on Australian Accounting Standards basis.