Australian Government, 2013-14 Budget
Budget

Part 2: Expense Measures (Continued)

Treasury

Australia in the Asian Century — Strengthening engagement in the Asian region

Expense ($m)
  2012-13 2013-14 2014-15 2015-16 2016-17
Department of the Treasury

The Government will provide $9.8 million from 2014‑15 to strengthen Treasury portfolio engagement in the Asian region. This will be achieved through enhanced cooperation activities with the Chinese National Development and Reform Commission and agencies in other regional partners, including India, Indonesia, Japan, the Republic of Korea and Vietnam. Activities will include joint research initiatives, the exchange of Treasury officials with regional counterpart agencies and capacity building activities.

This measure was included as a 'decision taken but not yet announced' in the Mid‑Year Economic and Fiscal Outlook 2012‑13.

This measure forms part of the Government's strategy to take advantage of the opportunities offered by the Asian century.

Further information can be found in the Australia in the Asian Century White Paper of 28 October 2012 issued by the Prime Minister.

Australian Bureau of Statistics — additional funding for Input‑Output Data Tables and the Household Expenditure Survey

Expense ($m)
  2012-13 2013-14 2014-15 2015-16 2016-17
Australian Bureau of Statistics 3.9 2.5
Australian Bureau of Statistics 0.1 0.1

The Government will provide $5.2 million over two years (including $0.2 million in capital funding) to the Australian Bureau of Statistics (ABS) for the continued production of annual input‑output data tables. The tables are part of the Australian national accounts and provide detailed information about the way that different sectors of the Australian economy interact.

In addition, the Government will provide $1.4 million to the ABS to undertake preparatory work for conducting a four yearly Household Expenditure Survey (HES).

Currently, the HES is conducted every six years. It collects information on the expenditure, income, net worth and other characteristics of household residents in private dwellings throughout Australia.

Australian Competition and Consumer Commission — additional funding

Expense ($m)
  2012-13 2013-14 2014-15 2015-16 2016-17
Australian Competition and Consumer Commission 4.3 4.3 4.4 4.4

The Government will provide $17.4 million over four years to assist the Australian Competition and Consumer Commission to investigate substantial matters of public interest in accordance with the objectives of the Competition and Consumer Act 2010.

Australian Competition and Consumer Commission — chemical risk management

Expense ($m)
  2012-13 2013-14 2014-15 2015-16 2016-17
Australian Competition and Consumer Commission 2.1 2.1 2.1 2.1

The Government will provide $8.5 million over four years to fund the role of the Australian Competition and Consumer Commission (ACCC) in risk managing potential chemical hazards in consumer products. The ACCC receives notifications of chemicals to be assessed from the National Industrial Chemical Notification and Assessment Scheme.

Australian Securities and Investments Commission client contact centre — National Business Names registration system

Expense ($m)
  2012-13 2013-14 2014-15 2015-16 2016-17
Australian Securities and Investments Commission 3.1 3.1
Australian Securities and Investments Commission 2.2 2.2 2.2 2.2
Australian Securities and Investments Commission 1.6

The Government will provide $7.8 million over two years to the Australian Securities and Investments Commission (ASIC) to improve ASIC's client contact centre service levels to support the introduction of the online National Business Names registration system. This funding includes $1.6 million in capital in 2013‑14 to upgrade ASIC's call centre infrastructure.

The cost of this measure will be offset by an increase in the fees charged by ASIC for registering a business name from $30 for one year and $70 for three years to $32 and $74 respectively, subject to indexation of the fees to adjust for inflation.

Brisbane Cross River Rail and Melbourne Metro Projects — Advisory Board

Expense ($m)
  2012-13 2013-14 2014-15 2015-16 2016-17
Department of the Treasury 1.6 1.6

The Government will provide $3.2 million over two years to engage specialist external expertise required to advise the Government on funding agreements for the Brisbane Cross River Rail and Melbourne Metro infrastructure projects. This includes the establishment of a private and public sector advisory body to assist Treasury in providing advice to Government on the appropriate financial structures for these projects.

The additional advice is required as these projects have opportunities for innovative financial agreements between the Commonwealth, state and the private sector as a means to encourage greater private sector involvement. The funding and financing of these projects could also involve support other than the traditional Commonwealth grant funding, such as limited project/debt guarantees or post construction payments.

Commonwealth debt management — savings

Expense ($m)
  2012-13 2013-14 2014-15 2015-16 2016-17
Australian Office of Financial Management ‑2.2 ‑2.2 ‑2.2 ‑2.2

The Government will achieve savings of $8.9 million over four years from efficiencies in managing the Commonwealth's debt activities.

This represents savings from the 2009‑10 Budget measure titled Australian Office of Financial Management — additional funding and reflects lower than forecast administrative costs for issuing Commonwealth debt.

Economic modelling capacity — continuation

Expense ($m)
  2012-13 2013-14 2014-15 2015-16 2016-17
Department of the Treasury 2.9 2.9 3.0 3.0

The Government will provide $11.8 million over four years to the Department of the Treasury to maintain existing economy‑wide modelling capacity in support of the development of government policy across portfolios.

Energy Market Reform — Australian Energy Regulator

Expense ($m)
  2012-13 2013-14 2014-15 2015-16 2016-17
Australian Competition and Consumer Commission 6.6 5.5 5.5 5.5

The Government will provide $23.2 million over four years to the Australian Competition and Consumer Commission to fund additional functions of the Australian Energy Regulator (AER) arising from proposed changes to the framework for energy network regulation, and to enhance AER scrutiny of network infrastructure spending.

Funding is also provided for the establishment of a Consumer Challenge Panel, comprised of industry experts, and state‑based consumer focus groups that will provide input into AER decision making in relation to network regulatory determinations.

This measure is part of a package designed to improve the regulation of energy markets and ensure that consumers have more of a choice when it comes to their electricity use.

Financial literacy — additional funding

Expense ($m)
  2012-13 2013-14 2014-15 2015-16 2016-17
Department of the Treasury 1.3 1.2 1.3 1.5

Funding of $5.4 million over four years will be provided to the Department of the Treasury to make payments to states and territories under a new National Partnership for MoneySmart Teaching. This measure builds on the initiatives undertaken through the National Partnership on Helping Our Kids Understand Finances — Professional Learning and MoneySmart Schools, which expires on 30 June 2013.

Low Income Superannuation Contribution — technical amendment

Expense ($m)
  2012-13 2013-14 2014-15 2015-16 2016-17
Australian Taxation Office 3.0 3.0 3.0 3.0 3.0

The Government will amend the eligibility criteria for the low income superannuation contribution (LISC) to now pay individuals with an entitlement below $20. Previously, the LISC was not paid if it would be less than $20. Entitlements under $10 will be rounded up to $10.

The LISC effectively refunds, up to $500 a year, the tax paid on superannuation concessional contributions for people with incomes up to $37,000. This technical amendment will cost $15 million over the forward estimates.

National Insurance Affordability Initiative — commencement and initial projects

Expense ($m)
  2012-13 2013-14 2014-15 2015-16 2016-17
Department of the Treasury 50.0 50.0

The Government will invest $100 million over two years to reduce flood risk and bring about real reductions in insurance premiums. The National Insurance Affordability Initiative will invest $50 million a year in targeted flood and other natural disaster mitigation measures, as well as establish a National Insurance Affordability Council (NIAC).

The NIAC will play a role in the national coordination of flood risk management, ensuring that the needs of industry and consumers of insurance are met, and make recommendations to the Government on flood and other natural disaster mitigation projects.

The Government has identified three priority areas of work for the NIAC. These are a $7 million contribution to building the Roma levee and $10 million to upgrade flood defences in Ipswich, as well as an anticipated contribution of $50 million towards any NSW Government flood mitigation works in respect of the Warragamba Dam. Amounts not already committed under the initiative will be allocated to projects consistent with this initiative.

Official development assistance — support for low income countries through the Poverty Reduction and Growth Trust — Stage 1 and Stage 2

Expense ($m)
  2012-13 2013-14 2014-15 2015-16 2016-17
Department of the Treasury 13.9 36.7
AusAID ‑13.9
Total — Expense 36.7

The Government will provide $13.9 million in 2012‑13 and $36.7 million in 2014‑15 to the International Monetary Fund (IMF) Poverty Reduction and Growth Trust interest subsidy account to increase the Fund's medium term lending capacity for low income countries. This contribution represents Australia's share of the proceeds of gold sales by the IMF and is part of the IMF members' pledge to return the proceeds from limited sales of IMF gold holdings.

The cost of this measure will be met from within the existing resources of AusAID in 2012‑13 and will be offset from the provision for expanded aid funding held in the Contingency Reserve in 2014‑15.

Over‑the‑counter derivatives market supervision

Expense ($m)
  2012-13 2013-14 2014-15 2015-16 2016-17
Australian Securities and Investments Commission 3.0 1.2 0.9 0.8
Australian Prudential Regulation Authority 3.0 1.2 0.9 0.8

The Government will provide $5.9 million over four years to implement reforms to the supervision of over‑the‑counter derivatives markets, as part of Australia's commitment as a member of the Group of Twenty (G‑20) nations to reducing systemic risk in these markets. This builds on previous funding provided to enhance the role of the Australian Securities and Investments Commission in market surveillance and supervision.

The cost of this measure will be offset by an increase in financial sector levies collected by the Australian Prudential Regulation Authority.

See also the 2012‑13 Budget measures titled Australian Securities and Investments Commission — enhanced market supervision and Australian Securities and Investments Commission — operational funding.

Petrol Commissioner and formal monitoring of petrol prices — continuation

Expense ($m)
  2012-13 2013-14 2014-15 2015-16 2016-17
Australian Competition and Consumer Commission 0.7 0.7

The Government will provide $1.4 million to the Australian Competition and Consumer Commission to continue the role of the Petrol Commissioner and the formal monitoring of petrol prices under Part VIIA of the Competition and Consumer Act 2010, for 12 months to December 2014.

Funding was originally provided in the 2008‑09 Budget and has been continued in subsequent budgets.

Population Census 2016 — transition to a new model

Expense ($m)
  2012-13 2013-14 2014-15 2015-16 2016-17
Australian Bureau of Statistics 11.9 17.9 6.0 ‑69.3
Australian Bureau of Statistics 8.1 7.1 17.0 1.3

The Government has brought forward funding of $68.0 million for the Australian Bureau of Statistics (ABS) from 2016‑17 to the years 2013‑14 to 2015‑16 to enable the ABS to transition to a new model for the 2016 Population Census. The new model will include increased emphasis on e‑census collection and postal distribution of census material, with resulting savings in the census year, 2016‑17. The funding from 2013‑14 includes $33.6 million in capital including for systems development for the new census model.

Research and Development tax incentive — quarterly credits

Expense ($m)
  2012-13 2013-14 2014-15 2015-16 2016-17
Australian Taxation Office 1.8 3.1 1.5 1.0 1.0
Australian Taxation Office 0.9 0.5

The Government will allow eligible entities to claim the Research and Development (R&D) refundable tax offset on a quarterly basis. The measure will apply for each quarter commencing on or after 1 January 2014. The quarterly payment of claims has no fiscal balance impact, but has a negative underlying cash balance impact of $270.0 million over the forward estimates. Funding for this measure was provided in the Contingency Reserve in the Mid‑Year Economic and Fiscal Outlook 2011‑12.

The Government will also provide the Australian Taxation Office with $9.7 million (including $1.3 million in capital funding) to implement the measure.

The R&D tax incentive provides a 45 per cent refundable tax offset to eligible companies with aggregated turnover of less than $20 million and a 40 per cent non refundable tax offset to all other eligible companies. Currently, companies have to wait until their end of year assessment to realise the value of the offset. This measure will allow for the advanced payment of the 45 per cent refundable tax offset on a quarterly basis to improve cash flow and enhance incentives for small innovative companies to invest in R&D activities.

Further information can be found in the press release of 12 April 2013 issued by the Assistant Treasurer.

Statistical Infrastructure Project

Expense ($m)
  2012-13 2013-14 2014-15 2015-16 2016-17
Australian Bureau of Statistics 2.1
Department of Finance and Deregulation ..
Total — Expense .. 2.1

The Government will provide $2.1 million to the Australian Bureau of Statistics to develop a second pass business case for a major statistical infrastructure and business process reengineering project.

The Government will also provide $42,000 to the Department of Finance and Deregulation in 2012‑13 to undertake a Gateway Review of the project.

Superannuation — further financial assistance grants to compensate fund members for the failure of Trio

Expense ($m)
  2012-13 2013-14 2014-15 2015-16 2016-17
Department of the Treasury
Australian Prudential Regulation Authority

The Government provided further grants of financial assistance under Part 23 of the Superannuation Industry (Supervision) Act 1993 (SIS Act) to compensate members of four APRA‑regulated superannuation funds, formerly under the trusteeship of Trio Capital Limited (Trio), that suffered losses due to fraudulent conduct.

The cost of these assistance grants was $16.7 million in 2012‑13 and will be recovered through levies collected in 2012‑13 by the Australian Prudential Regulation Authority (APRA) under the Superannuation (Financial Assistance Funding) Levy Act 1993 (FAL).

These grants are in addition to the $55.0 million provided in 2010‑11 to members of superannuation funds formerly under the trusteeship of Trio. These funds were largely recovered through levies collected in 2011‑12 by APRA under the FAL.

Funding for this measure was included as a 'decision taken but not yet announced' in the Mid‑Year Economic and Fiscal Outlook 2012‑13.

Superannuation Complaints Tribunal — additional funding

Expense ($m)
  2012-13 2013-14 2014-15 2015-16 2016-17
Australian Securities and Investments Commission 1.0 0.9 0.3 0.3
Australian Prudential Regulation Authority 1.0 0.9 0.3 0.3

The Government will provide $2.6 million over four years to support the operations of the Superannuation Complaints Tribunal. The cost of this measure will be offset by an increase in the levy on Australian Prudential Regulation Authority regulated superannuation funds.

Superannuation reforms — Charter of Superannuation Adequacy and Sustainability and Council of Superannuation Custodians — Charter Group

Expense ($m)
  2012-13 2013-14 2014-15 2015-16 2016-17
Department of the Treasury 0.2

The Government will develop a Charter of Superannuation Adequacy and Sustainability and establish a Council of Superannuation Custodians. The Charter will be developed against the principles of certainty, adequacy, fairness and sustainability and will outline the core objects, values and principles of the Australian superannuation system. The Council will be charged with assessing future policy against the Charter and will provide an annual report on the superannuation system that will be tabled in Parliament.

Funding of $0.2 million in 2012‑13 will be provided to support a Charter Group that will consult and report on the proposed Charter and Council. Funding for the Council will be considered once the Charter Group has reported.

This measure is part of a package of reforms to improve the fairness, sustainability and efficiency of the superannuation system. Further information can be found in the joint press release of 5 April 2013 issued by the Deputy Prime Minister and Treasurer, and the Minister for Financial Services and Superannuation.

Tax Studies Institute — establishment

Expense ($m)
  2012-13 2013-14 2014-15 2015-16 2016-17
Department of the Treasury 2.0 ‑1.0 ‑1.0

The Government will establish a Tax Studies Institute (TSI) as a centre for excellence in tax research at the Crawford School of Public Policy at the Australian National University by providing a one‑off endowment payment of $3 million in 2012‑13.

This replaces the Government's previous decision in the Mid‑Year Economic and Fiscal Outlook 2011‑12, to provide seed funding for a TSI of $1 million per year for three years from 2012‑13.

A one‑off endowment will enable the Tax Studies Institute to better manage its expenses.

Tax System Advisory Board — establishment

Expense ($m)
  2012-13 2013-14 2014-15 2015-16 2016-17
Australian Taxation Office

The Government will establish a Tax System Advisory Board within the Australian Taxation Office (ATO) to advise the Commissioner of Taxation and the ATO Executive Committee on the strategic direction, culture, organisation, management, compliance planning, staff profile and information technology plans at the ATO.

The cost of this measure will be met from within the existing resources of the ATO.

Trans‑Tasman Mobile Roaming

Expense ($m)
  2012-13 2013-14 2014-15 2015-16 2016-17
Australian Competition and Consumer Commission 0.2 0.4 0.4 0.4
Australian Communications and Media Authority 0.2 0.4 0.4

The Government will provide $1.3 million over four years to the Australian Competition and Consumer Commission (ACCC) to investigate wholesale and retail mobile roaming charges between Australia and New Zealand. The ACCC will publish an annual roaming pricing report to increase price and margins transparency for trans‑Tasman roaming.

The costs of this measure will be fully recovered by the Australian Communications and Media Authority from annual carrier licence charges collected under the Telecommunications (Carrier Licence Charges) Act 1997.

Treasury legal expenses

Expense ($m)
  2012-13 2013-14 2014-15 2015-16 2016-17
Department of the Treasury nfp nfp

The Government will provide funding to the Department of the Treasury to cover legal expenses relating to a constitutional challenge in the High Court to the Minerals Resource Rent Tax. The case was heard by the High Court in March 2013, with a judgement expected late in 2013.

Note: Where possible, Budget documents are available in HTML and for downloading in Portable Document Format(PDF). If you require further information on any of the tables or charts on this website, please contact The Treasury.