Finance and Administration
Asset sales — staffing and administrative costs
| 2004-05 | 2005-06 | 2006-07 | 2007-08 | |
|---|---|---|---|---|
| Department of Finance and Administration | 1.0 | - | - | - |
The Government will provide $1 million in 2004-05 to enable the continuation of the programme of asset sales activities.
Consistent with previous practice, departmental expenses for the asset sales function are determined on an annual basis in the budget process.
Australian Electoral Commission — improving the integrity of the electoral roll
| 2004-05 | 2005-06 | 2006-07 | 2007-08 | |
|---|---|---|---|---|
| Australian Electoral Commission | 1.7 | 1.4 | 1.3 | 1.4 |
| Related capital ($m) | ||||
| Australian Electoral Commission | 0.5 | - | - | - |
The Government will provide $6.3 million (including $0.5 million capital funding) over four years to enable the Australian Electoral Commission to improve the integrity of the electoral roll and election processes.
The funding will help implement the Government’s response to the Joint Standing Committee on Electoral Matters’ Review of the Australian National Audit Office Report No. 42 of 2001-02, Integrity of the Electoral Roll.
The Government’s response to the Committee’s report on the Integrity of the Electoral Roll was tabled in Parliament on 16 October 2003.
The capital funding will enhance the Australian Electoral Commission’s information technology systems to support these activities.
Australian Electoral Commission — maintaining core capability
| 2004-05 | 2005-06 | 2006-07 | 2007-08 | |
|---|---|---|---|---|
| Australian Electoral Commission | 19.7 | -8.0 | -4.1 | 15.4 |
The Government will provide $28.1 million over five years (including $5.1 million in 2003-04) to enable the Australian Electoral Commission (AEC) to maintain its core capability to meet statutory obligations under the Commonwealth Electoral Act 1918, at a quality and standard expected by the Government and other key stakeholders.
This funding, in response to recommendations of the Resourcing Review that was jointly conducted by the Commission and the Department of Finance and Administration, is to address increased responsibilities and services by the Commission and new legislative requirements. These include increases in enrolments and in the number of eligible voters by over 30 per cent since 1984. The funding, taking into account efficiency gains achieved through the Review, will enable the AEC to better meet expectations of the public in relation to the provision of polling services, and of key stakeholders in maintaining the accuracy of the electoral roll and the provision of timely and accurate electoral results.
The funding reflects the AEC’s cyclical pattern of expenditure, which is higher in election years and lower in non-election years.
Defence capability proposals — establishment of an enhanced cost assessment capability
| 2004-05 | 2005-06 | 2006-07 | 2007-08 | |
|---|---|---|---|---|
| Department of Finance and Administration | 1.4 | 2.0 | 2.1 | 2.1 |
The Government will provide $8.1 million over five years (including $0.5 million in 2003-04) for the establishment of an enhanced cost assessment capability in relation to Defence capability proposals following the Government’s decision on the report into the Review of Defence Procurement (the Kinnaird Report), announced on 18 September 2003.
The additional funding will enable the Department of Finance and Administration to take on a new role in the evaluation and quality assurance of the costs and financial risks associated with Defence capability procurement proposals. This role will be undertaken at the early stages of the capability development process to ensure that the costs and risks are properly addressed from the start, and to provide greater scrutiny over the procurement process as a whole.
Further details can be found in the press release by the Minister for Defence dated 18 September 2003.
Government procurement arrangements relating to the Australia-United States Free Trade Agreement
| 2004-05 | 2005-06 | 2006-07 | 2007-08 | |
|---|---|---|---|---|
| Department of Finance and Administration | 5.9 | 6.8 | 5.5 | 6.0 |
| Australian Government Information Management Office | - | -0.9 | -0.9 | -0.9 |
| Total | 5.9 | 5.9 | 4.6 | 5.1 |
The Government will provide additional funding of $24.3 million over four years to implement policy and administrative changes to Australian Government procurement arrangements required by the pending Australia-United States Free Trade Agreement, which is expected to take effect from 1 January 2005.
This measure provides resources for the Department of Finance and Administration to set up and maintain a revised Australian Government procurement framework, including supporting systems, to incorporate the specific rules and procedures set out in the Government Procurement chapter of the Free Trade Agreement.
The Australian Government Information Management Office will return $2.7 million over three years from 2005-06 to the budget as part of the transfer of its responsibilities for procurement information systems to the Department.
Parliamentary entitlements — software
| 2004-05 | 2005-06 | 2006-07 | 2007-08 | |
|---|---|---|---|---|
| Department of Finance and Administration | 0.1 | 0.1 | 0.1 | 0.1 |
The Government will provide additional funding of $0.5 million over four years to increase the software entitlements for parliamentarians from $1,000 to $1,500 per annum under the Parliamentary Entitlements Act 1990.
Parliamentary superannuation changes
| 2004-05 | 2005-06 | 2006-07 | 2007-08 | |
|---|---|---|---|---|
| Department of Finance and Administration | -1.1 | -3.8 | -4.3 | -6.1 |
| Related revenue(a) ($m) | ||||
| Department of Finance and Administration | -0.2 | -0.6 | -0.6 | -0.8 |
(a) A negative number for revenue indicates a decrease in the fiscal balance.
The Government has announced the closure of the Parliamentary Contributory Superannuation Scheme to new Members of Parliament (MPs) from the next election, and that it will be replaced with an accumulation scheme that attracts a Government contribution at the community standard rate of 9 per cent. The 9 per cent contribution will be paid to a complying superannuation fund (other than a self-managed superannuation fund) or retirement savings account chosen by the MP. This change will reduce the Government’s expenses for Parliamentary superannuation by $15.3 million over four years.
This change will also reduce revenue by $2.2 million over four years because the Australian Government will no longer receive Parliamentary Contributory Superannuation Scheme member contributions from new MPs.
Telstra and Australia Post superannuation changes
| 2004-05 | 2005-06 | 2006-07 | 2007-08 | |
|---|---|---|---|---|
| Department of Finance and Administration | -377.0 | -366.0 | -353.1 | -336.0 |
The Government will pay out its superannuation liabilities to the Telstra Superannuation Scheme and the Australia Post Superannuation Scheme, by making lump sum payments. This will replace the current quarterly instalments that commenced in 1990.
The lump sum payments will not affect the benefits of members of these superannuation schemes and will have no effect on the superannuation arrangements of Telstra and Australia Post employees who remained in the Commonwealth Superannuation Scheme.
The decision will result in a $4.7 billion reduction in the Government’s unfunded superannuation liability. Paying out the liabilities will reduce the Government’s superannuation expenses as shown above. This will be partly offset by the financing costs associated with making the payments. Overall, there will be an improvement in the fiscal balance over the forward estimates period because the transaction pays out a high cost liability, with interest tied to the investment returns in these funds.