The Treasury's mission
The Treasury's mission is to improve the wellbeing of the Australian people by providing sound and timely advice to the Government, based on objective and thorough analysis of options, and by assisting Treasury ministers in the administration of their responsibilities and the implementation of government decisions.
Policy outcome
In carrying out its mission, the Treasury has responsibility for the following outcome:
Informed decisions on the development and implementation of policies to improve the wellbeing of the Australian people, including by achieving strong, sustainable economic growth, through the provision of advice to government and the efficient administration of federal financial relations.
The Treasury has five groups that contribute to achieving this outcome. The groups are:
- Macroeconomic Group;
- Fiscal Group;
- Revenue Group;
- Markets Group; and
- Corporate Services and Strategy Group.
Macroeconomic Group
Macroeconomic Group provides advice on a sound macroeconomic environment, which is an essential foundation for strong, sustainable, economic growth.
Macroeconomic Group undertakes monitoring and analysis of economic conditions in Australia and overseas, which forms the basis of quality macroeconomic policy advice to portfolio ministers.
Macroeconomic Group also provides advice to government on a range of international economic policy issues, including strengthening multilateral regimes underpinning open trade and capital flows, supporting developing countries' development aspirations and on helping to shape the evolution of regional economic architecture.
Macroeconomic Group is also responsible for payments to international financial institutions as outlined in programme 1.2 on pages 55-56.
Fiscal Group
Fiscal Group provides advice on effective government spending arrangements that contribute to the overall fiscal outcome and help deliver strong and sustainable economic growth.
Effective spending measures should meet their stated objectives, minimise behavioural distortions and deliver significant economic and other benefits compared with costs. Fiscal Group provides policy advice to portfolio ministers to promote government decisions that further these objectives.
Fiscal Group is also responsible for the efficient payment of general revenue assistance, National Specific Purpose Payments and National Partnership Payments to the states and territories as outlined in programmes 1.4 to 1.10 on pages 59-71.
Revenue Group
Revenue Group provides advice on effective tax and retirement income arrangements policy and on legislation to implement policy that contributes to the overall fiscal outcome and to strong, sustainable economic growth.
Tax and retirement income policy affects the wellbeing of Australians through influencing individuals' decisions on saving and investment, as well as through labour market participation and businesses' decisions about whether, where and how much to invest.
Well-designed tax legislation contributes to the ability of taxpayers to understand and comply with their tax obligations.
Revenue Group also provides advice on the fiscal and distributional impacts of changes to tax policy.
Markets Group
Markets Group provides advice on well-functioning markets that contribute to improving national productivity and promoting stronger economic growth, thereby enhancing the living standards of all Australians.
Well-functioning markets enable the most efficient use of resources and maximise consumer confidence in markets, which, in turn, enhance community benefits from economic activity.
Markets Group provides advice on policies that promote competitive, efficient markets to enhance consumer-wellbeing; a secure financial system and sound corporate practices; and foreign investment consistent with Australia's national interest.
Markets Group also maintains the operations of the Australian Government Actuary, the Financial Reporting Council and the Takeovers Panel.
Markets Group is also responsible for payments to support markets and business as outlined in programme 1.3 on pages 57-58.
Corporate Strategy and Services Group
The Corporate Strategy and Services Group assists in setting and delivering the corporate strategic direction of Treasury. The group delivers quality and valued corporate advice and services for the department, its people and ministers.
Corporate Strategy and Services Group is responsible for providing accommodation and facilities management; communications advice and support; financial management; human resources management; training and development; information management and technology services; freedom of information management; media management and monitoring; ministerial and parliamentary support; procurement; publishing; security and travel.
Corporate Strategy and Services Group functions also include assisting with the development of whole-of-department corporate strategy; providing support to the Secretary, the Executive Board and the Audit Committee, including oversight of departmental structures and systems; designing and facilitating whole-of-department policy discussions; coordinating organisational strategy initiatives; overseeing the risk management framework; and undertaking and assisting with departmental reviews.
Treasury people values
Treasury people are skilled professionals, committed to providing quality advice, thinking analytically and strategically, and striving to achieve long-term benefits for all Australians. We uphold the important values and behaviours that shape the Treasury culture. These values influence all aspects of the way we work.
Treasury people:
- strive for excellence;
- value teamwork, consultation and sharing of ideas;
- value diversity among our people;
- treat everyone with respect;
- exhibit honesty in all our dealings; and
- treat colleagues with fairness.
Treasury people management principles provide for:
- open, two-way communications at all levels;
- clear definition of accountabilities;
- remuneration based on work performance, determined by fair and transparent processes; and
- facilitation of an appropriate work and private life balance.
The Treasury's role and capabilities
The Treasury's mission statement reflects the breadth of its ministers' responsibilities and underscores the key importance for the Treasury of a strong relationship with its ministers, built on trust and effective advice. As a central policy agency, the Treasury is expected to anticipate and analyse policy issues from a whole-of-economy perspective, understand government and stakeholder circumstances, and respond rapidly to changing events and directions. As such, the Treasury's interests are broad and diverse.
In undertaking its mission, Treasury takes a broad view of wellbeing as primarily reflecting a person's substantive freedom to lead a life they have reason to value.
This view encompasses more than is directly captured by commonly used measures of economic activity. It gives prominence to respecting the informed preferences of individuals, while allowing scope for broader social actions and choices. It is open to both subjective and objective notions of wellbeing, and to concerns for outcomes and consequences, as well as for rights and liberties.
To facilitate objective and thorough analysis, we have identified five dimensions that directly or indirectly have important implications for wellbeing and are particularly relevant to Treasury. These are:
- The set of opportunities available to people. This includes not only the level of goods and services that can be consumed, but good health and environmental amenity, leisure and intangibles such as personal and social activitie
s, community participation and political rights and freedoms. - The distribution of those opportunities across the Australian people. In particular, that all Australians have the opportunity to lead a fulfilling life and participate meaningfully in society.
- The sustainability of those opportunities available over time. In particular, consideration of whether the productive base needed to generate opportunities (the total stock of capital, including human, physical, social and natural assets) is maintained or enhanced for current and future generations.
- The overall level and allocation of risk borne by individuals and the community. This includes a concern for the ability, and inability, of individuals to manage the level and nature of the risks they face.
- The complexity of the choices facing individuals and the community. Our concerns include the costs of dealing with unwanted complexity, the transparency of government and the ability of individuals and the community to make choices and trade-offs that better match their preferences.
These dimensions reinforce our conviction that trade-offs matter deeply. The dimensions do not provide a simple checklist; rather, their consideration provides a broader context for the best use of available economic and other analytical frameworks, evidence and measures.
The Treasury applies and develops its technical expertise, knowledge base and support systems to deliver on the Government's priorities. We maximise our potential by nurturing and strengthening our core organisational capabilities, and consistently seek better ways to do business.
Our organisational capabilities are:
- Deep understanding: understanding our mission, the economic and policy environment, and the views of our stakeholders.
- Collaboration: collaborating with internal and external stakeholders to develop effective policy.
- Proactivity and vision: anticipating policy, implementation and organisational issues.
- Influence and reputation: building trust with the Government and other stakeholders, and influencing the policy agenda.
- Improvement and adaptability: being flexible, adaptable and innovative.
- Efficiency and productivity: managing costs, allocating resources and enabling efficiencies.
Financial performance
The Treasury received an unqualified audit report on the 2013-14 financial statements from the Australian National Audit Office. These statements can be found in Part 4 on pages 105-207.
Departmental
The Treasury ended 2013-14 with an attributable surplus of $0.3 million, compared to a surplus of $3.0 million in 2012-13. Employee expenses were $10.4 million higher compared to 2012-13, mainly due to the voluntary redundancy process. Supplier expenses increased by $8.3 million which was mainly due to expenditure relating to the hosting of the G20 Finance Ministers' and Central Bank Governors' meetings as part of Australia's 2014 host year. The Treasury's net asset position decreased by $3.6 million in 2013-14, mainly due to the recognition of separation and redundancies payable at 30 June 2014.
The Treasury has sufficient cash reserves to fund liabilities as and when they fall due.
Administered
The Treasury incurred $93.8 billion in administered expenses in 2013-14 compared to $81.4 billion in 2012-13. In 2013-14, the Treasury provided a one-off $8.8 billion grant to the Reserve Bank of Australia (RBA) to strengthen its financial position to the level considered appropriate by the RBA Board. There was also an increase in grant expenses to the states and territories that the Treasury provides under the Intergovernmental Agreement on Federal Financial Relations.
The Treasury's administered net assets increased by $12.3 billion in 2013-14. This is mainly due to an increase in the value of Treasury's investments in Australian Government Entities.
| Secretary: Dr Martin Parkinson PSM | ||
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| Executive Director (Policy Coordination and Governance): Ms Amanda Cattermole A/g | ||
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Corporate Strategy and Services Group Financial and Facilities Management Division Information Management and Technology Division |
Ministerial and Communications Division People and Organisational Strategy Division |
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| Macroeconomic Group: Executive Director (Domestic), Dr David Gruen Macroeconomic Group: Executive Director (International), Mr Barry Sterland |
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Macroeconomic Conditions Division Macroeconomic and Modelling Policy Division International Policy and Engagement Division G20 Policy Division G20 Operations and Logistics Division |
Overseas Operations Washington DC Paris London Tokyo Beijing |
Jakarta New Delhi Papua New Guinea Jakarta Solomon Islands |
| Fiscal Group: Executive Director, Mr Nigel Ray | ||
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Budget Policy Division Commonwealth-State Relations Division |
Infrastructure, Industry, Environment and Defence Division Social Policy Division |
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| Revenue Group: Executive Director, Mr Rob Heferen | ||
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Board of Taxation Secretariat Tax Analysis Division Small Business Tax Division Corporate and International Tax Division |
Law Design Practice Personal and Retirement Income Division Tax White Paper Task Force |
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| Markets Group: Executive Director, Ms Jan Harris | ||
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Australian Government Actuary Deregulation Division Small Business Competition and Consumer Policy Division Financial System and Services Division |
Foreign Investment Takeovers Panel Competition Policy Review Secretariat Financial System Inquiry |
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Outcome 1: |
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| Programme 1.1: Department of the Treasury | |
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Macroeconomic Group |
Macroeconomic Conditions Division |
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Fiscal Group |
Budget Policy Division |
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Revenue Group |
Board of Taxation Secretariat |
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Markets Group |
Australian Government Actuary |
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Corporate Strategy and Services Group |
Financial and Facilities Management Division |
| Programme 1.2: Payments to International Financial Institutions | |
| Macroeconomic Group: International Policy and Engagement Division | |
| Programme 1.3: Support for markets and business | |
| Markets Group: Financial System and Services Division | |
| Programme 1.4: General revenue assistance | |
| Fiscal Group: Commonwealth-State Relations Division | |
| Programme 1.5: Assistance to the states for healthcare services | |
| Fiscal Group: Commonwealth-State Relations Division | |
| Programme 1.6: Assistance to the states for schools | |
| Fiscal Group: Commonwealth-State Relations Division | |
| Programme 1.7: Assistance to the states for skills and workforce development | |
| Fiscal Group: Commonwealth-State Relations Division | |
| Programme 1.8: Assistance to the states for disabilities services | |
| Fiscal Group: Commonwealth-State Relations Division | |
| Programme 1.9: Assistance to the states for affordable housing | |
| Fiscal Group: Commonwealth-State Relations Division | |
| Programme 1.10: National partnership payments to the states | |
| Fiscal Group: Commonwealth-State Relations Division | |
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Portfolio Minister — Treasurer Minister for Small Business Acting Assistant Treasurer Parliamentary Secretary to the Treasurer |
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Department of the Treasury Outcome 1: Informed decisions on the development and implementation of policies to improve the wellbeing of the Australian people, including by achieving strong, sustainable economic growth, through the provision of advice to government and the efficient administration of federal financial relations Programme 1.1: Department of the Treasury Programme 1.2: Payments to International Financial Institutions Programme 1.3: Support for markets and business Programme 1.4: General revenue assistance Programme 1.5: Assistance to the states for healthcare services Programme 1.6: Assistance to the states for schools Programme 1.7: Assistance to the states for skills and workforce development Programme 1.8: Assistance to the states for disabilities services Programme 1.9: Assistance to the states for affordable housing Programme 1.10: National partnership payments to the states |
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Australian Bureau of Statistics Outcome 1: Informed decisions, research and discussion within governments and the community by leading the collection, analysis and provision of high-quality, objective and relevant statistical information Programme 1.1: Australian Bureau of Statistics |
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Australian Competition and Consumer Commission Outcome 1: Lawful competition, consumer protection, and regulated national infrastructure markets and services through regulation, including enforcement, education, price monitoring and determining the terms of access to infrastructure services Programme 1.1: Australian Competition and Consumer Commission |
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Australian Office of Financial Management Outcome 1: The advancement of macroeconomic growth and stability, and the effective operation of financial markets, through issuing debt, investing in financial assets and managing debt, investments and cash for the Australian Government Programme 1.1: Australian Office of Financial Management |
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Australian Prudential Regulation Authority Outcome 1: Enhanced public confidence in Australia's financial institutions through a framework of prudential regulation that balances financial safety and efficiency, competition, contestability and competitive neutrality Programme 1.1: Australian Prudential Regulation Authority |
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Australian Securities and Investments Commission Outcome 1: Improved confidence in Australia's financial markets through promoting informed investors and financial consumers, facilitating fair and efficient ma Programme 1.1: Australian Securities and Investments Commission Programme 1.2: Banking Act 1959, Life Insurance Act 1995, unclaimed monies and special accounts |
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Australian Taxation Office Outcome 1: Confidence in the administration of aspects of Australia's taxation and superannuation systems through helping people understand their rights and obligations, improving ease of compliance and access to benefits, and managing non-compliance with the law Programme 1.1: Australian Taxation Office Programme 1.2: Tax Practitioners Board Programme 1.3: Australian Business Register Programme 1.4: Australian Valuation Office Programme 1.5: Australian Charities and Not-for-profit Commission Programme 1.6: Australian Screen Production Incentive Programme 1.7: Cleaner Fuels Grant Scheme Programme 1.8: Fuel Tax Credits Scheme Programme 1.9: National Rental Affordability Scheme Programme 1.10: Product Stewardship for Oil Programme 1.11: Research and Development Tax Offset Programme 1.12: Baby Bonus Programme 1.13: Education Tax Refund Programme 1.14: First Home Saver Accounts National Urban Water and Desalination Plan Programme 1.15: Low Income Superannuation Contribution Programme 1.16: Private Health Insurance Rebate Programme 1.17: Superannuation Co-contribution Scheme Programme 1.18: Superannuation Guarantee Scheme Programme 1.19: Interest on Overpayment and Early Payments of Tax Programme 1.20: Bad and Doubtful Debts and Remissions Programme 1.21: Other Administered |
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Clean Energy Finance Corporation Outcome 1: Facilitate increased flows of finance into Australia's clean energy sector applying commercial rigour to investing in renewable energy, low-emissions and energy efficiency technologies, building industry capacity, and disseminating information to industry stakeholders Programme 1.1: Clean Energy Finance Corporation |
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Commonwealth Grants Commission Outcome 1: Informed government decisions on fiscal equalisation between the states and territories through advice and recommendations on the distribution of GST revenue and health care grants Programme 1.1: Commonwealth Grants Commission |
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Corporations and Markets Advisory Committee Outcome 1: Informed decisions by Government on issues relating to corporations regulation and financial products, services and markets through independent and expert advice Programme 1.1: Corporations and Markets Advisory Committee |
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Inspector-General of Taxation Outcome 1: Improved tax administration through community consultation, review and independent advice to government Programme 1.1: Inspector-General of Taxation |
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National Competition Council Outcome 1: Competition in markets that are dependent on access to nationally significant monopoly infrastructure, through recommendations and decisions promoting the efficient operation of, use of and investment in infrastructure Programme 1.1: National Competition Council |
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Office of the Auditing and Assurance Standards Board Outcome 1: The formulation and making of auditing and assurance standards that are used by auditors of Australian entity financial reports or for other auditing and assurance engagements Programme 1.1: Auditing and Assurance Standards Board |
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Office of the Australian Accounting Standards Board Outcome 1: The formulation and making of accounting standards that are used by Australian entities to prepare financial reports and enable users of these reports to make informed decisions Programme 1.1: Australian Accounting Standards Board |
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Productivity Commission Outcome 1: Well-informed policy decision-making and public understanding on matters relating to Australia's productivity and living standards, based on independent and transparent analysis from a community-wide perspective Programme 1.1: Productivity Commission |
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Royal Australian Mint Outcome 1: The coinage needs of the Australian economy, collectors and foreign countries are met through the manufacture and sale of circulating coins, collector coins and other minted products Programme 1.1: Royal Australian Mint |