Section 2: Outcomes and outputs information
Outcomes and output groups
The map below shows the relationship between government outcomes and the contributing outputs for the Australian Competition and Consumer Commission (ACCC). Financial detail for Outcome 1 by output appears in Table 2.1 while non-financial information for Outcome 1 appears in Table 2.2.
Map 2: Outcomes and output groups
Output cost attribution
The allocation of other expenses is based upon a detailed analysis by cost centre managers prior to the commencement of the financial year. Cost centre managers confirm in writing their contribution to the output split, and this information is distributed to staff for coding of actual transactions.
Changes to outcomes and outputs
There are no proposed changes to the outcome or outputs.
Outcome 1 - Description
To enhance social and economic welfare of the Australian community by fostering competitive, efficient, fair and informed Australian markets.
The ACCC's role is to administer the Trade Practices Act 1974 and the Prices Surveillance Act 1983 and to perform functions under other Commonwealth legislation and State and Territory Competition Policy Reform Acts.
The ACCC seeks to:
- promote effective competition and informed markets;
- encourage fair trading and protect consumers; and
- regulate infrastructure services market and other markets where competition is restricted.
Measures affecting Outcome 1
Australian Competition and Consumer Commission - cessation of cost recovery for airport regulation
The Government has decided to reallocate funding previously provided to the Australian Competition and Consumer Commission (ACCC) for administering price regulation of airport services to partially fund a one year extension of the Location Specific Pricing Subsidy for air traffic control services provided by Airservices Australia.
Following the Government's decision to remove price controls from airports from 1 July 2002, the ACCC's regulatory responsibilities have diminished and this appropriation is no longer required. This expense was recovered by excise and customs duty of 0.036 cents per litre on aviation turbine fuel (avtur). Revenue will be redirected to the Transport and Regional Services portfolio.
See also the related expense measure titled Airservices Australia - extension of the Location Specific Pricing Subsidy in the Transport and Regional Services portfolio and revenue measure titled Aviation fuel excise - extension of excise collection for the Location Specific Pricing Subsidy in the Treasury portfolio.
Australian Competition and Consumer Commission - monitoring medical indemnity insurance premiums
The Government will provide funding of $1 million over two years to the Australian Competition and Consumer Commission (ACCC) to monitor medical indemnity premiums to ensure that they are actuarially and commercially justified.
In October 2002, the Government announced a package of measures aimed at ensuring key private medical services, including in rural and regional areas, are maintained, and providing a new framework for the provision of medical indemnity insurance in Australia. The Government considers it important that the benefits of reforms are passed on to the practitioners, to patients and to the community.
Funding of $0.5 million was provided in the Mid-Year Economic and Fiscal Outlook 2002-03 to enable the ACCC to commence monitoring of medical indemnity premiums in January 2003. The additional funding will allow the ACCC to continue in its monitoring role to the end of June 2005.
Australian Competition and Consumer Commission - telecommunications competition regulation
The Government will provide the Australian Competition and Consumer Commission with additional funding of $22.9 million over four years, with ongoing funding subject to review by October 2006, to continue its current regulatory role in the telecommunications sector under the Trade Practices Act 1974 and to undertake additional tasks and responsibilities arising from reforms enacted by the Telecommunications Competition Act 2002.
Expenses for this proposal are fully recovered from the telecommunications industry under the Telecommunications (Carrier Licence Charges) Act 1997 in the year following the expense.
See also the related revenue measure titled Telecommunications competition regulation - cost recovery in the Communications, Information Technology and the Arts portfolio.
Australian Competition and Consumer Commission - implementation of the Wilkinson Report
The Government will provide additional funding of $2.3 million over three years to the Australian Competition and Consumer Commission to implement the Government's response to the findings and recommendations of the Wilkinson Report on the impact of the competition provisions of the Trade Practices Act 1974 on recruitment and retention of medical practitioners in rural and regional Australia.
Funding ends in the calendar year 2005 to coincide with the review of the implementation of the recommendations of the Wilkinson Report.
Outcome 1 - Resourcing
Table 2.1 shows how the 2003-04 appropriations translate to total resourcing for Outcome 1, including administered expenses, revenues from government (appropriations), revenue from other sources, and the total price of outputs.
Table 2.1: Total resources for Outcome 1
(1) C1 and E1 show the link back to Table 1.1.
(2) Further details on special accounts appear in Table 1.5.
Outcome 1 - Contribution of outputs
The ACCC's outputs of compliance with laws and competitive market structures reflect the Government's decision to foster competitive, efficient, fair and informed Australian markets.
The outputs reflect the activity that the ACCC undertakes to fulfil its role and functions. The Government seeks to enhance the social and economic welfare of Australians, which the ACCC seeks to contribute by:
- promoting effective competition and informed markets;
- encouraging fair trading and protecting consumers; and
- regulating infrastructure services market and other markets where competition is restricted.
The ACCC commits to meet these goals through effective and timely outcomes in the public interest, and to communicating its actions and results to the community at large.
Performance information for Outcome 1
Table 2.2: Performance information for Outcome 1
Table 2.2: Performance information for Outcome 1 (continued)
Evaluations
Stakeholder views will be sought on the effectiveness of the ACCC's actions.