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The budgeted financial statements have been prepared in accordance with the goods and services tax (GST) accounting guidelines of the Urgent Issues Group (UIG) of the Australian Accounting Standards Board. The UIG consensus requires that expenses and assets be accounted for net of recoverable GST, revenues be accounted for net of GST payable and that cash flows and accounts payable and receivable be reported gross. Appropriations are thus net of recoverable GST amounts.
This statement provides a picture of the expected financial results for the Department of the Treasury by identifying full accrual expenses revenues and capital use charge, which highlights whether the Department is operating at a sustainable level.
This statement shows the financial position of the Department of the Treasury. It helps decision-makers to track the management of assets and liabilities.
Budgeted cash flows, as reflected in the statement of cash flows, provide important information on the extent and nature of cash flows by categorising them into expected cash flows from operating activities, investing activities and financing activities.
Shows all planned departmental capital expenditure (capital expenditure on non-financial assets), whether funded either through capital appropriations for additional equity or borrowings, or from funds from internal sources.
Shows budgeted acquisitions and disposals of non-financial assets during the budget year.
This note identifies the main revenues and expenses administered on behalf of the Government. It also discloses administered revenues from government and transfers to the Public Account.
This note shows the assets and liabilities administered on behalf of the Government.
This note shows cash flows administered on behalf of the Government.
This note shows details of planned administered capital expenditure.
Table 3.1: Budgeted departmental statement of financial
performance
for the period ended 30 June
(1) K1 - see Table 1.1.
Table 3.2: Budgeted departmental statement of financial
position
as at 30 June
Table 3.3: Budgeted departmental statement of cash
flows
for the period ended 30 June
Table 3.4: Departmental capital budget statement
Table 3.5: Departmental non-financial assets - summary of movement (Budget year 2001-02)
Table 3.6: Note of budgeted
administered financial performance
for the period ended 30 June
(1) K2 - see Table 1.1.
Table 3.7: Note of budgeted administered financial
position
as at 30 June
Table 3.8: Note of budgeted administered cash flows
for the period ended 30 June
Table 3.9: Note of administered capital budget
(1) K4 - see Table 1.1.
The Department of the Treasury's budget statements have been prepared on an accrual basis and are in accordance with historical cost convention, except for certain assets, which are at valuation.
All financial information presented in the statements represents the net cost to the Commonwealth; the figures are exclusive of any GST which may be payable by the Commonwealth and which is recoverable as an input tax credit.
Under the Commonwealth's accrual budgeting framework, and consistent with Australian Accounting Standards, transactions that agencies control (departmental transactions) are separately budgeted for and reported on from transactions agencies do not have control over (administered transactions). This ensures that agencies are only held accountable for the transactions over which they have control.
Departmental assets, liabilities, revenues and expenses in relation to an agency are those which are controlled by the agency. Departmental expenses include employee and supplier expenses and other administrative costs, which are incurred by the agency in providing its goods and services.
Administered items are revenues, expenses, assets or liabilities which are managed by an agency on behalf of the Government according to set Government directions. Administered expenses include subsidies, grants, and personal benefit payments and administered revenues include taxes, fees, fines and excises.
The Department of the Treasury's departmental budget statements are aggregated to include the financial operations of the Royal Australian Mint (RAM). As part of its operations RAM budget for a profit. Any profit earned by RAM, taking into account working capital requirements, is returned to the Commonwealth.
Seignorage is collected by RAM on behalf of the Commonwealth. Seignorage represents the difference between the face value of coinage sold to the Reserve Bank of Australia and its cost of production to RAM. Seignorage is treated as an administered item within the Department of the Treasury budget statements.
A capital use charge is levied on the Department of the Treasury to reflect the cost of the Commonwealth's investment in the Department of the Treasury. It is levied on the closing balance of departmental net assets (equity) at a rate of 12 per cent for 2000-01 and 11 per cent for 2001-02 onwards.
Funding for the capital use charge is included in the departmental price of outputs appropriations. The capital use charge is accounted for as a `below operating result line' expense.
The Commonwealth collects a number of taxes on an agency basis for the States and Territories. These include `safety net' revenue replacement payments on excise and wholesales tax surcharge collections until 1 July 2000 and from 1 July 2000 the goods and services tax.
The revenue from these taxes is passed to State and Territory governments (with an adjustment for administration costs in the case of revenue replacement payments). Estimates of taxes collected by the Commonwealth and passed to State and Territory governments are provided in the following table.
While for constitutional reasons the GST is levied by the Commonwealth, and can therefore be technically considered a Commonwealth revenue under the reporting standards, the clear policy intent of the Intergovernmental Agreement on the Reform of Commonwealth-State Financial Relations (the IGA) is that it is a State tax collected by the Commonwealth in an agency capacity. Accordingly, GST payments are treated as negative revenue in these financial statements representing the transfer of taxes to State and Territory governments. This fully offsets GST revenue recorded by the Australian Taxation Office so that at a consolidated level the GST is not recorded as Commonwealth revenue.
Appendix 1
Departmental and administered revenue
Appendix 2
Estimates of expenses from special appropriations
