Budget Measures 2008-09 - Budget Paper No. 2 - Part 2: Expense Measures

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Finance and Deregulation

Other measures

ANZAC Park East office building — proposed refurbishment

Expense ($m)
	2007‑08	2008‑09	2009‑10	2010‑11	2011‑12
Department of Finance and Deregulation	-	1.7	-	-	-

The Government will provide $1.7 million in 2008‑09 in relation to the proposed refurbishment of the ANZAC Park East office building in central Canberra. The funding will allow scoping of the project ahead of further consideration prior to the 2009‑10 Budget. Refurbishment would allow the building, which has been vacant for nine years, to be brought into productive use.

Deregulation — implementing the Government's agenda

Expense ($m)
	2007‑08	2008‑09	2009‑10	2010‑11	2011‑12
Department of Finance and Deregulation	-	1.0	1.0	1.0	1.0

The Government will provide an additional $4.0 million over four years to establish a capability within the Department of Finance and Deregulation to provide policy advice to the Government and assist with the implementation of the Government's deregulation agenda.

This initiative is designed to achieve better regulation and assist in reducing the burden presently borne by businesses, consumers and the economy.

A further $2.0 million over four years will be provided from the existing resourcing of the Department of Finance and Deregulation.

Investing in our future — Building Australia Fund

Expense ($m)
	2007‑08	2008‑09	2009‑10	2010‑11	2011‑12
Department of Finance and Deregulation	-	-	-	-	-

The Government will establish the Building Australia Fund (BAF) to provide a financing source for future investment in critical economic infrastructure in transport and communications such as road, rail, port facilities and broadband.

The Government will also close the Communications Fund and transfer its balance to the BAF. The Government will commit funds from the 2007‑08 and 2008‑09 surpluses, once realised, to the BAF bringing total funding of the BAF to $20.0 billion. A proportion of future surpluses may be allocated to the fund as appropriate. The Fund will be established by 1 January 2009 and be managed by the Future Fund Board of Guardians.

Future disbursements from the fund will be subject to budget consideration, and will be spent responsibly, in line with prevailing macroeconomic conditions. Spending from the fund on specific projects will be subject to rigorous evaluation. With the exception of funding for the National Broadband Network, drawdowns from the BAF will not occur before 2009‑10. It is expected that funding of $400.0 million will also be available for regional telecommunications, subject to the Government's consideration of the Glasson Review.

The Building Australia Fund will be established by 1 January 2009.

Investing in our future — Education Investment Fund

Expense ($m)
	2007‑08	2008‑09	2009‑10	2010‑11	2011‑12
Department of Finance and Deregulation	-	-	-	-	-

The Government will establish the Education Investment Fund (EIF), to provide a financing source for future infrastructure priorities in the higher education and vocational education and training sectors. Key priorities will include capital expenditure and renewal and refurbishment in universities and vocational education institutions, including research facilities and major research institutions. In the future, the priorities funded from the EIF could be extended to include school infrastructure as further contributions are made to the EIF. The Government will close the Higher Education Endowment Fund and transfer the balance of the fund to the newly created EIF.

The Government will commit a further $5.0 billion from the 2007‑08 and 2008‑09 surpluses, once realised, to the EIF bringing total funding of the EIF to over $11.0 billion. A proportion of future surpluses may be allocated to the fund as appropriate. The Fund will be established by 1 January 2009 and be managed by the Future Fund Board of Guardians.

Future disbursements from the fund will be subject to budget consideration, and will be spent responsibly, in line with prevailing macroeconomic conditions. There will be rigorous evaluation criteria for determining which projects will ultimately be funded. Drawdowns from the EIF will not occur until 2009‑10.

See also the related expense measure titled Higher Education Endowment Fund — funding reallocation in the Education, Employment and Workplace Relations portfolio.

Investing in our future — Health and Hospitals Fund

Expense ($m)
	2007‑08	2008‑09	2009‑10	2010‑11	2011‑12
Department of Finance and Deregulation	-	-	-	-	-

The Government will establish the Health and Hospitals Fund (HHF), to provide a financing source for future health infrastructure priorities. Key priorities will include capital expenditure and renewal and refurbishment of hospitals, major hospital facilities, medical technology equipment, and major medical research facilities and projects. The Government will commit $10.0 billion from the 2007‑08 and 2008‑09 surpluses, once realised, to the HHF. A proportion of future surpluses may be allocated to the fund as appropriate. The creation of the HHF obviates the need to proceed with the previous Government's decision to establish the Health and Medical Investment Fund. The HHF will be established by 1 January 2009 and be managed by the Future Fund Board of Guardians.

See also the related expense measure titled Responsible Economic Management — Health and Medical Investment Fund — redirection of earnings in the Health and Ageing portfolio.

Uninsured superannuation liability — managing claims stemming from the Cornwell Case

Expense ($m)
	2007‑08	2008‑09	2009‑10	2010‑11	2011‑12
Department of Finance and Deregulation	-	-	-	-	-

The Government has decided that the Comcover general insurance fund will manage the small volume of uninsured claims made against the Government. The claims are for incorrect advice provided in past years about the superannuation eligibility of certain temporary employees. This follows the High Court's decision in the Cornwell superannuation case regarding compensation for incorrect superannuation advice.

There will be no net budget impact because the estimated costs of $3.1 million over the four years 2008‑09 to 2011‑12 will be passed through to the agencies that have inherited the liabilities.

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