Acronyms And Abbreviations 
A&TSI	Aboriginal and Torres Strait Islanders	
ABS	Australian Bureau of Statistics	
ADB	Asian Development Bank	
AGPS	Australian Government Publishing Service	
ANAO	Australian National Audit Office	
APEC	Asia‑Pacific Economic Cooperation	
APS	Australian Public Service	
ASO	Administrative Service Officer	
ASOCC	Administrative Service Officers’ Consultative Committee	
ASX	Australian Stock Exchange	
ATAX	Australian Taxation Studies Program	
ATO	Australian Taxation Office	
AusAID	Australian Agency for International Development	
CEDA	Committee for the Economic Development of Australia	
CNPS	Competitive Neutrality Policy Statement	
COAG	Council of Australian Governments	
CPI	Consumer Price Index	
CPSU	Community and Public Sector Union	
DAA	Development Allowance Authority	
EAP	Employee Assistance Program	
EBRD	European Bank for Reconstruction and Development	
EEO	Equal Employment Opportunity	
FIRB	Foreign Investment Review Board	
FOI	Freedom of Information	
FSI	Financial System Inquiry	
GAA	Graduate Administrative Assistant	
GBE	Government Business Enterprise	
GDP	Gross Domestic Product	
HLIC	Housing Loans Insurance Corporation	
IDC	Interdepartmental  Committee	
IEG	Investment Experts Group	
IMF	International Monetary Fund	
IPPA	Investment Promotion and Protection Agreement	
ITAA	Income Tax Assessment Act (1936)	
ITO	Information Technology Officer	
MAI	Multilateral Agreement on Investment	
MINCO	Ministerial Council for Corporations	
MYEFO	Mid Year Economic and Fiscal Outlook	
NAB	New Arrangements to Borrow	
NAIRU	Non-Accelerating Inflation Rate of Unemployment	
NCP	National Competition Policy	
NESB 1	Non‑English‑Speaking Background, First Generation	
NESB 2	Non‑English‑Speaking Background, Second Generation	
NGO	Non Government Organisation	
NIA	National Institute of Accountants	
OECD	Organisation for Economic Co-operation and Development	
OH&S	Occupational Health and Safety	
PDI	Public Debt Interest	
PGSA	Post Graduate Study Award	
PNG	Papua New Guinea	
PO	Professional Officer	
PRISMOD	Price, Revenue and Incidence Simulation Model	
PRU	Policy Research Unit	
R&D	Research and Development	
RBA	Reserve Bank of Australia	
RC	Running Costs	
REIA	Real Estate Institute of Australia	
RIM	Retirement Income Modelling 	
RIMGROUP	Retirement Income Modelling Group (model)	
RO	Research Officer 	
SCAG	Standing Committee of Attorneys-General	
SES	Senior Executive Service	
SITO	Senior Information Technology Officer	
SMART	System for Ministerial Answering, Routing and Tracking	
SO	Senior Officer	
SOA	Senior Officer Grade A	
SOB	Senior Officer Grade B	
SOC	Senior Officer Grade C	
SPD	Structural Policy Division	
SPO	Senior Professional Officer	
SRO	Senior Research Officer	
TAB	Treasury Adjustable Rate Bond	
TES	Treasury Expenditures Statement	
TIB	Treasury Indexed Bond	
TPD	Taxation Policy Division	
TRYM	Treasury Macroeconomic Model of the Australian Economy	
TWERP	Treasury Wholesale Sales Tax, Excise, Revenue and Price Model	
UNCITRAL	United Nations Commission on International Trade Law	
UNCTAD	United Nations Conference on Trade and Development	

Glossary of Accounting Terms
AAS
Abbreviation of Australian Accounting Standard; used as prefix, with a number, to uniquely identify each Australian Accounting Standard issued by the Australian Accounting Research Foundation on behalf of the Australian Society of Certified Practising Accountants and the Institute of Chartered Accountants in Australia.
Abnormal Items
Items of revenue and expense included in the operating result/profit or loss for the reporting period, which are considered abnormal by reason of their size and effect on the operating result/profit or loss for the reporting period (based on AAS 1).
Above the Line/Below the Line Transactions
The 'line' is the Budget balance (ie surplus or deficit). The levels of revenue and outlays determine the level of the Budget balance and are therefore referred to as 'above the line' transactions. Financing transactions involve the investment of Budget surpluses or the financing of Budget deficits and are therefore referred to as ‘below the line' transactions.
Accountability
The responsibility for providing information to enable users to make informed judgements about the performance, financial position, financing and investing, and compliance of the reporting entity (SAC 2). See definition of ‘SAC’ below.
Accounting
The day-to-day classification and recording of financial transactions and events in the accounting records of an entity.
Accounting Policies
The specific accounting principles, bases or methods applied in preparing and presenting financial statements (based on AAS 6).
Accounting Records
Include:
(a)	documents evidencing transactions and events (eg invoices, contracts etc);
(b)	journals, ledgers and registers (often in the form of computer-based systems); and
(c)	working papers containing information about revenues, expenses, assets, liabilities and other matters necessary to prepare financial reports.
Accrual Basis
The accounting basis whereby items are brought to account as they are earned or incurred (and not as money is received or paid) and included in the financial statements for the accounting periods to which they relate (AAS 6).
Accumulated Depreciation
The aggregate, at a given point of time, of the depreciation expenses made in respect of a particular depreciable asset or class of depreciable assets (AAS 4).
Act of Grace Payments
Section 34A of the Audit Act 1901 provides that, in special circumstances, the Commonwealth may pay an amount to a person notwithstanding that the Commonwealth is not under legal liability to do so.
Administered Items
Revenues, expenses, assets and liabilities administered by an agency for the Commonwealth generally (such as taxes, benefit payments, and public debt), which are not concerned with running the agency or its commercial activities.
Administrative Expenses
Includes not just expenditure on office based activities but all operational expenditure (excepting salaries). The item includes both direct costs and overhead expenditure and includes, inter alia, minor capital expenditure which is considered part of ordinary annual services; it does not include, inter alia, major capital expenditure, grants, loans or subsidies. See also ‘APPROPRIATION ACT (No1)’ and ‘APPROPRIATION ACT (No2)’.
Advance to the Minister for Finance (AMF)
The contingency provisions appropriated in the two annual Appropriation Acts to enable funding of urgent expenditures not foreseen at the time of preparation of the relevant Bills. These funds may also be used in the case of changes in expenditure priorities to enable 'transfers' of moneys from the purpose for which they were originally appropriated to another purpose pending specific appropriation.
Annual Appropriations
Acts which appropriate moneys for expenditure in relation to the Government's activities during the financial year. Such appropriations lapse on 30 June.
Appropriation
Authorisation by Parliament to expend public moneys from the Consolidated Revenue Fund or Loan Fund for a particular purpose, or the amounts so authorised. All expenditure (ie outflows of moneys) from the Commonwealth Public Account must be appropriated, ie authorised by the Parliament. The authority for expenditure from individual trust accounts is provided under the Audit Act 1901 or an Act establishing the trust account and specifying its purposes. See also 'Annual Appropriations' and 'Special Appropriations'.
Appropriation Act (No 1)
An Act to appropriate moneys from the Consolidated Revenue Fund for the ordinary annual services of government.
Appropriation Act (No 2)
An Act to appropriate moneys from the Consolidated Revenue Fund for other than ordinary annual services. Under existing arrangements between the two Houses of Parliament this Act includes appropriations in respect of new policies (apart from those funded under Special Appropriations), capital works and services, plant and equipment and payments to the States, the Australian Capital Territory and the Northern Territory.
APPROPRIATION ACTS (Nos 3 And 4)
Where an amount provided in an Appropriation Act (No 1 or 2) is insufficient to meet approved obligations falling due in a financial year, additional appropriations may be provided in a further Appropriation Act (3 or 4). (Other Appropriation Acts may be passed to cover emergency situations.) Appropriations may also be provided in these Acts for new expenditure proposals.
Appropriations Classified as Financing Transactions
Appropriations which are classified as financing transactions rather than outlays because they are considered to be closely or functionally related to the payment of loans, or comprise transactions involving financial assets or liabilities. They are also referred to as ‘below the line' transactions. They mainly comprise repayments of principal on loans (the interest repayments on loans are 'above the line' (q.v.) and are classified as outlays). See also 'Financing Transactions'.
Appropriations Classified as Revenue
Appropriations which are netted against receipts. They do not form part of outlays because they are considered to be closely or functionally related to certain revenue items, or relate to refunds of receipts and are therefore shown as offsets to receipts eg refunds of PAYE tax instalments, working capital advance to the Government Printer.
Assets
Service potential or future economic benefits controlled by an entity as a result of past transactions or other past events (SAC 4):
An asset must be recognised in the statement of assets and liabilities when and only when:
(a)	it is probable that the service potential or future economic benefits embodied in the asset will eventuate; and
(b)	the asset possesses a cost or other value that can be measured reliably (SAC 4).
Audit Act 1901
The principal legislation governing the collection, payment and reporting of public moneys. The audit of the Public Accounts and the protection and recovery of public property are also covered. Finance Regulations and Directions are made pursuant to the Act.
Below The Line Transactions
See 'Above the line transactions'.
Cash
Cash on hand and cash equivalents (AAS 28).
Cash Flow Statement
A financial statement that shows, for a financial period, the sources of cash inflows and how cash was applied, under headings indicating whether they relate to 'operating activities', 'investing activities' or 'financial activities'.
Class
A category of revenues, expenses, assets or liabilities having similar nature or function in the operations of the entity; each category, for the purpose of disclosure in a financial report, is shown as a single item without supplementary dissection.
Commonwealth Public Account (CPA)
The main bank account of the Commonwealth, maintained by the Reserve Bank of Australia, in which are held the moneys of the Consolidated Revenue Fund, Loan Fund and Trust Fund (other than the National Debt Sinking Fund).
Consolidated Revenue Fund (Crf), Loan Fund, Trust Fund
The three Funds comprise the Commonwealth Public Account.
CRF  the principal working fund of the Commonwealth, mainly financed by taxation, fees and other current receipts. The Constitution requires an appropriation of money by the Parliament before any expenditure can be made from the CRF. It is in two forms:
i.	annual appropriations consisting of the Appropriation Acts (Nos 1-4) and the Appropriation (Parliamentary Departments) Acts (Nos 1 and 2); and
ii.	special or standing appropriations.
Loan Fund  authority for its establishment comes from the Audit Act 1901. All moneys raised by loan on the public credit of the Commonwealth are credited to the Loan Fund. Expenditures from the Loan Fund require an appropriation by Parliament and are limited to the purpose(s) for which moneys were originally raised.
Trust Fund  essentially comprises trustee funds (termed ‘Heads of Trust’) established under section 60 of the Audit Act 1901 (ie moneys held in trust for the benefit of persons or bodies other than the Commonwealth); trust accounts established under section 62A of the Audit Act 1901 (ie working accounts covering certain government agendas and certain other accounts in the nature of ‘suspense accounts’); and trust accounts established under other Acts to meet further expenditure.
Payments into the Trust Fund may be by way of appropriation from the CRF or Loan Fund or direct credit of private moneys. Expenditure from the Trust Fund is appropriated for (and limited to) the specific purposes of each trust account or Head of Trust. Unlike the unused portion of annual appropriations, trust account balances  as with ‘special’ or ‘standing’ appropriations  do not lapse at the end of the financial year.
Legal advice is to the effect that investments, and the liquidation of those investments, involve ‘expenditure’ and ‘receipts’ for the purposes of subsection 50(2) of the Audit Act 1901 and that the balances of the Trust Fund should be reduced by the amount of the investments outstanding at 30 June. Trust Fund transactions are split between investment and non-investment activities to provide ‘notional’ balances which take account of the value of investments, and ‘cash’ balances which reflect investment transactions.
Control of an Asset
The capacity of the entity to benefit from the asset in pursuit of the entity’s objectives and to deny or regulate the access of others to that benefit (SAC 4, AAS 29).
Current Assets
Cash, moneys held at call or other assets of a reporting entity that would be, in the ordinary course of operations of that reporting entity, consumed or converted into cash within 12 months after the period covered by its financial statements (AAS 2, 4, 10).
Current Liabilities
Liabilities of a reporting entity that would in the ordinary course of operations of that reporting entity be due and payable within 12 months after the period covered by its financial statements.
Depreciable Asset
A non-current asset having a limited useful life (AAS 4).
Expenditure
The total or gross amount of money spent by the Government on any or all of its activities (ie the total outflow of moneys from the Commonwealth Public Account) (cf. 'Outlays'). All expenditure must be appropriated ie authorised by the Parliament (see also 'Appropriations’). Every expenditure item is classified to one of the economic concepts of outlays, revenue (ie offset within revenue) or financing transactions. 
Expenses
Consumptions or losses of service potential or future economic benefits in the form of reductions in assets or increases in liabilities of the entity, other than those relating to distributions to owners, that result in a decrease in equity during the reporting period (SAC 4).
An expense must be recognised in the operating statements in the determination of the result for the reporting period, when and only when:
(a)	it is probable that the consumption or loss of service potential or future economic benefits resulting in a reduction in assets and/or increase in liabilities has occurred; and
(b)	the consumption or loss of service potential of future economic benefits can be measured reliably (SAC 4).
Financial Reporting
Summarising information in the accounting records in accordance with accounting standards and other requirements and presenting it in financial statements designed to suit the needs of management or external users.
Financing Activities
Those activities which relate to changing the size and composition of the financial structure of an entity, including equity, and borrowings not falling within the definition of cash (AAS 28). 
Financing and Investing
Those activities of a reporting entity that relate to the financing of its operations and the investment of its resources (SAC 2).
Financing Transactions
Relates to the raising and repayment of loan principal or transactions involving financial assets or liabilities (eg changes in investments or holdings of cash). They represent the difference between outlays and revenue and hence involve the investment of Budget surpluses or the financing of Budget deficits. As such they are referred to as ‘below the line' transactions. See also ‘Above the line’ and 'Appropriations classified as financing transactions'.
General Purpose Financial Reports
Financial reports intended to meet the information needs common to users who are unable to command the preparation of reports tailored so as to satisfy, specifically, all of their information needs (SAC l, 2; AAS 1, 4, 10, 24, 28, 29).
Going Concern Basis
The accounting basis whereby in the preparation of the financial statements the reporting entity is viewed as a 'going concern'; that is, in the absence of evidence to the contrary, the entity is expected to continue in operation without any intention or necessity to liquidate or to curtail significantly the scale of its operations (AAS 6).
Historical Cost
The original cost of the purchase, delivery and installation of an asset (including pre- and post-installation capital expenditure).
Investing Activities
Those activities which relate to the acquisition and disposal of non-current assets, including property, plant and equipment and other productive assets and investments such as securities, not falling within the definition of cash (AAS 28).
Liabilities
Future sacrifices of service potential of future economic benefits that the entity is presently obliged to make to other entities as a result of past transactions or other past events (SAC 4).
A liability must be recognised in the statement of assets and liabilities when and only when:
(a)	it is probable that the future sacrifice of service potential or future economic benefits will be required; and
(b)	the amount of the liability can be measured reliably (SAC 4).
Loan Fund
See 'Consolidated Revenue Fund'.
Net Cost of Services
The net amount of operating expenses after deducting 'operating revenues from independent sources'.
Non-Current Assets
Assets other than 'current assets' (AAS 2, 4, 10). See definition of ‘CURRENT ASSETS’ above.
Non-Current Liabilities
Liabilities other than 'current liabilities'. See definition of ‘CURRENT LIABILITIES’ above.
Notes to and Forming Part of the Financial Statements
Their function is to disaggregate and further explain the information contained in the primary financial statements, thereby freeing those statements from details that could otherwise obscure the key financial indicators.
Operating Activities
Those activities which relate to the provision of goods and services (AAS 28).
Operating Expenses
Expenses arising from the 'ordinary operations' of an entity.
Operating Revenues
Revenues arising from the 'ordinary operations' of an entity.
Operating Revenues From Independent Sources
Includes revenues from:
(a)	the sale of goods and services to other bodies; and 
(b)	the profit on sale of assets;
to the extent that those revenues are deemed to be appropriated under section 35 of the Audit Act 1901 and have been or will be applied in running the agency.
Operating Statement
Is a financial statement that shows, for a financial period, the full cost of resources consumed by an agency in achieving its objectives, the extent of any cost recoveries (through user charges and any other 'operating revenues from independent sources') and revenues from governments.
Outlays
An economic concept which shows the net extent to which resources are directed through the Budget to other sectors of the economy after offsetting recoveries and repayments against relevant expenditure items, ie outlays consist of expenditure net of associated receipt items. Outlays are 'above the line' transactions (q.v.). The difference between outlays and revenue determines the Budget balance (ie surplus or deficit). See also 'Appropriations'; 'Appropriations classified as revenue'; ‘Appropriations classified as financing transactions'; and ‘Receipts offset within outlays'. 
Primary Financial Statements
Of an agency are the:
(a)	operating statement;
(b)	statement of assets and liabilities;
(c)	program statement;
(d)	cash reconciliation   cash flow statement;
(e)	statement of transactions by fund; and
(f)	notes to the financial statements.
Program Statement
A financial statement that disaggregates information in the 'operating statement' and shows total assets and liabilities for each program.
Provisions
Means
(a)	in relation to the Operating Statement  amounts charged as expenses to recognise accrued liabilities (eg long service leave) or reduction in the carrying amounts of assets (eg depreciation) during the financial period; and
(b)	in relation to the Statement of Assets and Liabilities  amounts referred to in paragraph (a) that have accumulated from previous financial periods and the current financial period in relation to assets or liabilities included in the Statement.
Receipts
The total or gross amount of moneys received by the Commonwealth (ie the Commonwealth Public Account). Every receipt item is classified to one of the economic concepts of revenue, outlays (ie offset within outlays) or financing transactions.
Receipts Not Offset Within Outlays
Receipts classified as 'revenue'. See also ‘Revenue'.

Receipts Offset Within Outlays
Receipts which are netted against certain expenditure items because they are considered to be closely or functionally related to those items, eg receipts from the States in respect of interest payments made on their behalf by the Commonwealth.
Recognised
Means reported on, or incorporated in amounts reported on, operating statement or in the statement of assets and liabilities (whether or not further disclosure of the item is made in notes thereto) (SAC 4, AAS 1, 4, 10, 24, 28, 29).
Relevance
That quality of financial information which exists when the information influences decisions by users about the allocation of scarce resources by:
(a)	helping them form predictions about the outcomes of past, present or future events; and/or
(b)	confirming or correcting their past evaluations;
and which enables users to assess the rendering of accountability by preparers (SAC 3).

Reliability
That quality of financial information which exists when the information can be depended upon to represent faithfully, and without bias or undue error, the transaction or events that it either purports to represent or could reasonably be expected to represent (SAC 3).
Reporting Entity
An entity (including an economic entity) in respect of which it is reasonable to expect the existence of users dependent on 'general purpose financial reports' for information which will be useful to them for making and evaluating decisions about the allocation of scarce resources (SAC 2, AAS 1, 4, 10, 24, 28, 29).
Reserves
Amounts set aside out of profits (of a commercial entity), or other gains or increments, such as gains on revaluation of assets.
Revaluation
The act of recognising a reassessment of values of non-current assets as at a particular date (AAS 10).
Revenue (in Budget context)
Items classified as revenue are receipts which have not been offset within outlays or classified as financing transactions. The term 'revenue' is an economic concept which comprises the net amounts received from taxation, interest, regulatory functions, investment holdings and government business undertakings. It excludes amounts received from the sale of government services or assets (these are offset within outlays) and amounts received from loan raisings (these are classified as financing transactions). Some expenditure is offset within revenue, eg refunds of PAYE tax instalments and the operating expenditure of budget sector business undertakings. See also 'Receipts'.
Revenues (in accrual accounting and reporting contexts)
Inflows or other enhancements, or saving in outflows, of service potential or future economic benefits in the form of increases in assets or reductions in liabilities of the entity, other than those relating to contributions by owners, that result in an increase in equity during the reporting period (SAC 4).
A revenue must be recognised in the operating statement, in the determination of the result for the reporting period, when and only when:
(a)	it is probable that the inflow or other enhancement or saving in outflows of service potential or future economic benefits has occurred; and
(b)	the inflow or other enhancements or saving in outflows of service potential or future economic benefits can be measured reliably (SAC 4).
SAC
The abbreviation of Statement of Accounting Concept; used as prefix, with a number, to uniquely identify each Statement of Accounting Concepts issued by the Australian Accounting Research Foundation on behalf of the Australian Society of Certified Practising Accountants and the Institute of Chartered Accountants in Australia.
Special Purpose Financial Reports
Financial reports other than 'general purpose financial reports'; includes managements reports.

Special (Standing) Appropriation
Moneys appropriated by a specific Act of Parliament for a specific purpose (eg unemployment benefits, grants to States for schools). Special Appropriations may or may not be for a specific amount of money or particular period of time. They do not require annual spending authorisation by the Parliament as they do not lapse at the end of each financial year. A distinction is sometimes made between Standing and Special Appropriations. Standing Appropriations refer to an open-ended appropriation of the Consolidated Revenue Fund by the enabling Act of a legislatively-based program: the amount appropriated will depend on the demand for payments by claimants satisfying program eligibility criteria specified in the legislation. Special Appropriations can be regarded as somewhere between Standing and Annual Appropriations: while a specified amount is provided, it is included in a separate Bill authorising the particular program and can be specified for any number of years.
Statement of Assets and Liabilities
A financial statement that shows, at the end of each reporting period, each class of assets and liabilities of an agency under headings indicating whether they are 'current' or 'non-current'.
Statement of Transaction by Fund
A financial statement that shows the receipts and payments of an agency against budget estimates for each class of transaction within the 'Consolidated Revenue Fund', 'Trust Fund' and 'Loan Fund'.
SWAPS
Financial transactions in which two counterparties agree to exchange streams of payments occurring over time according to a predetermined rule. For liability management purposes a swap is used to change the currency and/or interest rate exposure associated with existing loans.
Total Fixed Remuneration
Refers to annual salary, superannuation and non-salary component and reflects those amounts advertised in the Commonwealth of Australia Gazette for SES salary packages at various levels.
Trust Account Transactions Affecting Outlays
Refers to movements in trust account balances. Outlays measure the net extent to which resources are directed from the Commonwealth Public Account (ie through the Budget) to other sectors of the economy. Accordingly, the transactions of the CRF, the Trust Fund and the Loan Fund are consolidated and inter-fund transfers disregarded. Thus the expenditure from the CRF under an appropriation of a trust account would not in itself contribute to outlays, but the expenditure undertaken from the trust account would. Consequently, in reconciling the level of outlays to the level of appropriations, it is necessary to adjust the latter for the movements in trust account balances which are classified to outlays.
Trust Fund
See 'Consolidated Revenue Fund'.Useful Life
Means
(a)	the estimated period over which a depreciable asset is expected to be able to be used, or the benefits represented by the asset are expected to be able to be derived; or
the estimated total service, expressed in terms of production of similar units, that is expected to be obtained from the assets (AAS 4).

Index Of Compliance With Requirements
Requirement		Page	
Letter of Transmission		iii	
Aids to Access			
Table of Contents		iv	
Alphabetical Index			
Compliance Index			
Acronyms and Abbreviations			
Introduction and Guide to Report		viii	
Contact officer for information available on request		viii	
Portfolio Overview		1	
Corporate Statement		9	
Program Performance Reporting			
Summary of Program Structure		6	
Summary of Financial and Staffing Resources		12	
Appendices			
Staffing Overview	Appendix B	77	
Industrial Democracy 	Appendix C	87	
Occupational Health and Safety	Appendix D	89	
Freedom of Information	Appendix G	100	
Advertising and Market Research	Appendix I	113	
Reconciliation of Program and Appropriation Elements	Appendix K	117	
Subprogram Financial and Staffing Resources   
Major Variations	
Appendix L	118	
Financial Statements	Appendix M	121