Finance and Administration

ASC Pty Limited — scoping study into possible sale

Expense ($m)

	2005-06	2006-07	2007-08	2008-09
Department of Finance and Administration	2.2	-	-	-

The Government will provide $2.2 million in 2005-06 to enable the Department of Finance and Administration to conduct a scoping study into the possible sale of ASC Pty Ltd (Australian Submarine Corporation). The scoping study will assess the likely sale environment and seek to ascertain the optimal timing and method of possible sale.

Asset sales function — continuation of resourcing

Expense ($m)

	2005-06	2006-07	2007-08	2008-09
Department of Finance and Administration	1.0	-	-	-

The Government will provide additional funding of $1.0 million in 2005-06 to continue 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 Government Information Management Office — incorporation into the Department of Finance and Administration

Expense ($m)

	2005-06	2006-07	2007-08	2008-09
Department of Finance and Administration	-1.2	-1.2	-1.2	-1.2

The Government will achieve savings of $1.2 million per year as a result of the incorporation of the Australian Government Information Management Office into the Department of Finance and Administration.

Department of Finance and Administration — additional funding

Expense ($m)

	2005-06	2006-07	2007-08	2008-09
Department of Finance and Administration	0.5	0.5	0.5	0.5

The Government will provide additional funding of $2.0 million over four years to the Department of Finance and Administration to cover increased operational costs.

Future Fund — implementation and administration

Expense ($m)

	2005-06	2006-07	2007-08	2008-09
Future Fund Management Agency	6.3	7.9	7.9	8.1
Department of the Treasury	0.9	-	-	-
Total	7.1	7.9	7.9	8.1
Related capital ($m)
Future Fund Management Agency	1.0	-	-	-

The Government will establish the Future Fund, for the purpose of accumulating financial assets to offset the Australian Government’s unfunded superannuation liability. The fund will be managed by a statutory agency overseen by an independent board, which will make investments in accordance with a broad investment mandate issued by the Government.

The Government will provide $31.2 million over four years from 2005-06 (including $1 million in capital) to establish the Future Fund Management Agency, which will provide executive support and advice to the Future Fund Management Board.

The cost of contracting out investment activities to fund managers and the remuneration of Board members will be met from the Future Fund.

In addition, the Government will provide $0.9 million to the Department of the Treasury in 2005-06 to facilitate the implementation of the fund.

This measure was announced on 10 September 2004 as part of the Government’s election commitment Investing in the Future.

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