Section 1: Overview, appropriations and budget measures summary
The Australian Competition and Consumer Commission (ACCC) is an independent statutory authority which administers the Trade Practices Act 1974 and performs 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 the infrastructure services market and other markets where competition is restricted.
The ACCC also collects administered revenue on behalf of the Australian Government and this includes authorisation fees, fines and costs.
Appropriations and resourcing
The total appropriation for the ACCC in the 2004-05 Budget is $121.8 million. Table 1.1 on the following page provides this detail.
Table 1.2 details funding provided for new budget measures in 2004-05.
Australian Competition and Consumer Commission — appropriations 2004-05
Table 1.1: Appropriations and other revenue
- C1 and E1 refer to information provided in Table 2.1, Total resources for Outcome 1. K1 refers to information provided in Table 3.1, Budgeted Agency Statement of Financial Performance. K3 refers to information provided in Table 3.4, Agency Capital Budget Statement.
- Refer to Table 3.1, Budgeted Agency Statement of Financial Performance for application of agency revenue.
- Revenue from other sources includes other revenues from government (for example, resources free of charge) and revenue from other sources (for example, goods and services). Non-appropriated agency revenues are detailed in Table 1.3.
Note: Percentage figures indicate the percentage contribution of revenues from government (agency appropriations) to the total price of outputs, by outcome.
Measures — Australian Competition and Consumer Commission summary
Table 1.2: Summary of measures disclosed in the 2004-05 Budget
Agency and administered revenues
Table 1.3: Agency and administered revenues
Note: one per cent of revenues are due to cost recovery arrangements.
Revenues include goods and services (that is, seminars/speakers fees, sale of publications, photocopy revenue and sale of non-current assets).
Movement of administered funds from 2003-04 to 2004-05
Table 1.4: Movement of administered funds from 2003-04 to 2004-05
The reduction for 2004-05 reflects a one-off fine of $14.6 million (revenue) expected to be received in 2003-04 which was a penalty ordered as part of the ACCC action against a transformer cartel.
Table 1.6: Estimates of special account flows and balances
- The opening balance for 2004-05 (reference A) is the same as the closing balance for 2003-04 (reference B).
- This special account is departmental in nature and is governed by section 20 of the Financial Management and Accountability Act 1997.
- It is intended that the special account for the proposed Australian Energy Regulator will be governed by separate enabling legislation.
The Special Public Monies are held by the ACCC in a Trustee capacity. The Trust monies are a result of a court order of which payment to the beneficiary is pending. These monies are temporarily held for the benefit of a person or entity other than the Commonwealth.
A special account is proposed for the operations of the proposed Australian Energy Regulator. The establishment of the Australian Energy Regulator is subject to new legislation.
Agency equity injections and loans
The ACCC will receive an equity injection of $23.9 million in the 2004-05 Budget. An amount of $22.0 million is to fund the deficit in ACCC’s cash balance as a result of past operating losses and to increase the litigation contingency fund to its originally intended level. The balance of $1.9 million is the establishment capital costs of the proposed Australian Energy Regulator.