Treasury
Australian Energy Regulator
| 2005-06 | 2006-07 | 2007-08 | 2008-09 | |
|---|---|---|---|---|
| Australian Competition and Consumer Commission | 4.4 | - | - | - |
| Related capital ($m) | ||||
| Australian Competition and Consumer Commission | 0.4 | - | - | - |
The Government will provide additional funding of $4.8 million (including $0.4 million in capital funding) in 2005-06 to enable continued regulation of electricity transmission and wholesaling, and key rule enforcement functions in the National Electricity Market by the Australian Energy Regulator (AER). The funding will also enable the AER to assume regulatory responsibilities for the gas market.
The AER’s responsibilities are to be extended to include electricity and gas distribution and retail regulation (other than retail pricing) by 2006, following the development of an agreed national framework.
The activities of the AER will strengthen the national character of energy markets, reduce regulatory complexity, and streamline and enhance the quality of economic regulation across energy markets.
Longer-term funding for the AER will be subject to agreement between the Australian Government, states and territories.
Australian Securities and Investment Commission — United States — Australian audit regulation programme
| 2005-06 | 2006-07 | 2007-08 | 2008-09 | |
|---|---|---|---|---|
| Australian Securities and Investments Commission | 2.1 | 2.1 | 2.1 | - |
| Related capital ($m) | ||||
| Australian Securities and Investments Commission | .. | - | - | - |
The Government will provide additional funding of $6.3 million over three years (including $17,000 in capital funding) to the Australian Securities and Investments Commission to expand and upgrade its audit regulation programme. The funding will be subject to review in the 2007-08 Budget.
The additional funding will help secure recognition of the Australian system of audit regulation by United States regulatory authorities.
Recognition of Australia’s system of audit regulation will result in substantial benefits for Australian companies seeking access to US capital markets, including an enhanced ability to gain cost-effective access to those markets, reduced audit costs and compliance burdens and, as a flow-on, reduced cost of capital.
Financial Literacy Foundation
| 2005-06 | 2006-07 | 2007-08 | 2008-09 | |
|---|---|---|---|---|
| Department of the Treasury | 5.1 | 5.2 | 5.3 | 5.4 |
The Government will provide additional funding of $21.0 million over four years to establish the Financial Literacy Foundation. This additional allocation supplements funding of $5.0 million in 2004-05 (including $0.8 million in capital funding) provided as part of the Mid-Year Economic and Fiscal Outlook 2004-05.
The Foundation will be responsible for co-ordinating and improving financial education initiatives provided by public, private and community organisations. This includes establishing a website for financial literacy education and information resources, and working with state and territory governments to incorporate financial literacy into school curricula.
This measure was announced on 6 October 2004 as part of the Government election commitment Super For All and Understanding Money.
See the related expense measure titled Superannuation Choice — implementation in the Treasury portfolio.
Financial Reporting Council — improved accounting and auditing standards-setting arrangements
| 2005-06 | 2006-07 | 2007-08 | 2008-09 | |
|---|---|---|---|---|
| Department of the Treasury | - | - | - | - |
The Government will provide additional funding of $19.2 million over four years to support the Financial Reporting Council in its expanded role of overseeing auditor independence and audit standards-setting arrangements, and for the continuation of the Financial Reporting Panel. The expanded functions of the Financial Reporting Council and the newly established role of the Panel form part of the Corporate Law Economic Reform Program (Audit Reform and Corporate Disclosure) Act 2004 (CLERP9).
This measure involves funding of $4.8 million in each year from 2005-06 to 2008-09. Provision for this funding has already been included in the Contingency Reserve.
Hosting of the Group of Twenty (G-20) in 2006
| 2005-06 | 2006-07 | 2007-08 | 2008-09 | |
|---|---|---|---|---|
| Department of the Treasury | 5.5 | 7.0 | 0.2 | - |
| Related capital ($m) | ||||
| Department of the Treasury | .. | - | - | - |
The Government will provide $14.5 million over four years (including $1.8 million in 2004-05) to host the G-20 meeting of Finance Ministers and Central Bank Governors of major industrialised and emerging market economies in 2006, and the OECD’s Global Forum on Harmful Taxation Practices in 2005.
The G-20 meeting will provide a unique opportunity to enhance Australia’s influence on the international economic and financial agenda. The funding provides for venue meeting expenses and supports the creation of a secretariat with policy coordination and administration responsibilities.
This measure also includes funding for the OECD’s Global Forum on Harmful Taxation Practices in 2005, which will assess progress in meeting previously endorsed higher standards of transparency intended to minimise harmful tax practices.
James Hardie Taskforce investigation and litigation
| 2005-06 | 2006-07 | 2007-08 | 2008-09 | |
|---|---|---|---|---|
| Australian Securities and Investments Commission | 3.1 | - | - | - |
| Related capital ($m) | ||||
| Australian Securities and Investments Commission | .. | - | - | - |
The Government will provide additional funding of $7.5 million over two years (including $4.3 million in 2004-05) to the Australian Securities and Investments Commission to continue investigations and litigation arising from the James Hardie Special Commission of Inquiry into the separation of James Hardie’s asbestos liabilities from the James Hardie Group. This amount includes $20,000 in capital funding in 2005-06.
Labour force participation — modelling
| 2005-06 | 2006-07 | 2007-08 | 2008-09 | |
|---|---|---|---|---|
| Department of the Treasury | 1.5 | 1.5 | 1.5 | 1.6 |
| Related capital ($m) | ||||
| Department of the Treasury | .. | .. | .. | .. |
The Government will provide $6.1 million over four years (including $0.1 million in capital funding) to develop and maintain a quantitative model identifying the labour force participation effects of Government policy proposals, including tax and income support changes.
Name-identified census information — retention
| 2005-06 | 2006-07 | 2007-08 | 2008-09 | |
|---|---|---|---|---|
| Australian Bureau of Statistics | 2.0 | 12.2 | 4.8 | 0.1 |
The Government will provide additional funding of $19.0 million over four years to support the retention of name-identified census forms for archival, historical and socio-historical research. Funding will support the cost of a community education campaign and storage of the census forms on microfilm.
Consistent with arrangements for the 2001 census, census forms will only be retained where individuals have consented, and will only be released for research purposes after having been stored for at least 99 years by the National Archives of Australia.
Official statistics — upgrade
| 2005-06 | 2006-07 | 2007-08 | 2008-09 | |
|---|---|---|---|---|
| Australian Bureau of Statistics | 10.5 | 10.1 | 11.6 | 10.2 |
| Australian Taxation Office | 6.9 | - | - | - |
| Total | 17.4 | 10.1 | 11.6 | 10.2 |
| Related capital ($m) | ||||
| Australian Bureau of Statistics | 1.0 | 0.7 | 0.6 | 0.3 |
The Government will provide additional funding of $45.0 million over four years (including $2.6 million of capital funding) to upgrade official statistics. This will include strengthening key economic data, adopting new international statistical standards that comply with Australia’s international reporting obligations, and improving the accuracy of population data used for electoral purposes and for allocating funding amongst the states and territories.
The additional funding will also allow the Australian Bureau of Statistics (ABS) to publish the full range of its publications, free of charge, on the ABS website, support the creation of new statistical collections relating to Indigenous Australians and natural resource management, and conduct a food industry business longitudinal survey with a focus on small to medium enterprises.
The Government will also provide additional funding of $6.9 million in 2005-06 to the Australian Taxation Office to align the Australian and New Zealand Standard Industrial Classification (ANZSIC) capture processes with the ANZSIC 2006 standard. The funding will also facilitate conversion of the existing coded business records on the Australian Business Register to the new industry classifications.
One.Tel and Offset Alpine — ongoing litigation and investigation
| 2005-06 | 2006-07 | 2007-08 | 2008-09 | |
|---|---|---|---|---|
| Australian Securities and Investments Commission | 4.0 | - | - | - |
The Government will provide additional funding of $7.2 million over two years, (including $3.2 million in 2004-05) to the Australian Securities and Investments Commission to continue litigation arising from the collapse of One.Tel and ongoing investigation of alleged improper dealings relating to Offset Alpine.
Population Census
| 2005-06 | 2006-07 | 2007-08 | 2008-09 | |
|---|---|---|---|---|
| Australian Bureau of Statistics | 5.4 | 6.6 | 0.2 | - |
The Government will provide additional funding of $12.2 million over three years to develop a secure, reliable and user-friendly eCensus system for the internet lodgement of census forms, and to meet costs associated with including additional census questions relating to unpaid work.
The inclusion of questions on unpaid work will assist the Government to determine the impact of unpaid work on labour force participation and service provision by government and private agencies.
Productivity Commission — microeconomic reform — increased support
| 2005-06 | 2006-07 | 2007-08 | 2008-09 | |
|---|---|---|---|---|
| Productivity Commission | 3.8 | 3.8 | 3.8 | 3.9 |
The Government will provide additional funding of $19.0 million over five years (including $3.7 million in 2004-05) to the Productivity Commission to meet increased Government demand for its services in supporting the Government’s microeconomic reform agenda.
Reform of state taxes — payment of Budget Balancing Assistance
| 2005-06 | 2006-07 | 2007-08 | 2008-09 | |
|---|---|---|---|---|
| Department of the Treasury | - | 240.9 | 244.0 | 78.2 |
The Australian Government has put forward a timetable for the elimination of a range of inefficient state taxes consistent with the Intergovernmental Agreement on the Reform of Commonwealth-State Financial Relations.
The Australian Government’s timetable involves the abolition of the following indirect state taxes on 1 July 2006: stamp duty on non-quotable marketable securities; stamp duty on leases; stamp duty on mortgages, bonds, debentures and other loan securities; stamp duty on credit arrangements, instalment purchase arrangements and rental arrangements; and stamp duty on cheques, bills of exchange and promissory notes.
Stamp duty on business conveyances other than real property would be abolished on 1 July 2007. Under the Australian Government’s timetable, stamp duty on business conveyances of real property would cease to apply by a date to be determined by the Ministerial Council for Commonwealth-State Financial Relations on the basis that no state will be worse off in any one year.
To ensure that no state is worse off in any one year as a result of tax reform, the Australian Government will extend the transitional period beyond 30 June 2006 to June 2009 subject to the States agreeing to the Australian Government’s proposal. This means that any state or territory which has a shortfall between its GST revenue provision and its Guaranteed Minimum Amount after the implementation of the Australian Government’s proposal will be compensated through Budget Balancing Assistance.
Superannuation Choice — implementation
| 2005-06 | 2006-07 | 2007-08 | 2008-09 | |
|---|---|---|---|---|
| Australian Taxation Office | 18.6 | 8.0 | 7.2 | 13.8 |
| Australian Securities and Investments Commission | 7.6 | 6.4 | 5.8 | 4.8 |
| Total | 26.2 | 14.4 | 13.0 | 18.6 |
| Related revenue ($m) | ||||
| Australian Prudential Regulation Authority | 1.6 | 0.9 | 1.0 | 1.1 |
| Related capital ($m) | ||||
| Australian Securities and Investments Commission | 1.5 | - | - | - |
| Australian Taxation Office | - | - | - | - |
| Total | 1.5 | - | - | - |
The Government will provide additional funding of $88.4 million over five years (including $14.6 million in 2004-05) to assist with a smooth transition to superannuation choice. This includes capital funding of $1.5 million in 2005-06. In addition to the funding provided, the Australian Taxation Office will offset a further $28.7 million in implementation costs and $8.3 million in capital expenditure.
From 1 July 2005, more Australians will be able to choose the superannuation fund for their superannuation guarantee contributions. The measure will enable the conduct of a comprehensive education campaign that explains the changes to employers and provides eligible employees with the information they need to choose the superannuation fund that works best for them.
In addition to education, the measure will support the superannuation choice-related compliance and enforcement activities of the ATO and the Australian Securities and Investments Commission. It will also support the complaint resolution services of the Superannuation Complaints Tribunal (SCT).
The cost of the activities undertaken by the SCT will be fully offset by levies collected by the Australian Prudential Regulation Authority through the financial sector supervisory levy on superannuation funds.
See the related expenses measure titled Financial Literacy Foundation in the Treasury portfolio.
Further information can be found in the press release of 19 January 2005 issued by the Minister for Revenue and Assistant Treasurer.
Trade Practices Act 1974 — implementation of the Dawson Amendments
| 2005-06 | 2006-07 | 2007-08 | 2008-09 | |
|---|---|---|---|---|
| Australian Competition and Consumer Commission | 5.3 | 4.6 | 4.7 | 4.8 |
| Federal Court of Australia | 1.3 | 1.1 | 1.1 | 1.1 |
| Total | 6.6 | 5.6 | 5.8 | 5.9 |
| Related capital ($m) | ||||
| Australian Competition and Consumer Commission | 0.6 | - | - | - |
The Government has provided the Australian Competition and Consumer Commission (ACCC) with additional funding of $20.0 million over the next four years to implement and administer trade practices amendments recommended by the Dawson Committee’s Review of the Competition Provisions of the Trade Practices Act 1974 and proposed in the Trade Practices Legislation Amendment Bill (No. 1) 2005 (Dawson Bill).
The Review of the Competition Provisions of the Trade Practices Act 1974 was a 2001 election commitment and the most comprehensive review of the competition provisions of the Trade Practices Act 1974 (the Act) for a decade.
The Dawson review recommended changes to the Act aimed at improving the administration, timeliness and accountability of competition regulation. The amendments proposed in the Dawson Bill endorse the majority of these recommendations. This funding will enhance the ACCC’s ability to ensure that consumers and other market participants are well-informed and have access to competitive, fair and efficient markets.
The Government will also provide $4.5 million over four years to the Federal Court of Australia (Court) to extend the role of the Australian Competition Tribunal (Tribunal) to implement the reforms proposed in the Dawson Bill. New functions for the Tribunal will include the consideration of merger authorisation applications, and merit reviews of the ACCC’s decisions on formal merger clearances and objections to small business collective bargaining notifications. This funding also provides for an additional judge of the Court following the recent full time appointment of an existing judge to the Tribunal.