portfolio budget statements · web viewit is anticipated that the performance criteria described in...

Department of Employment

Entity resources and planned performance

DEPARTMENT OF EMPLOYMENT

Section 1: Entity overview and resources...............................................................131.1 Strategic direction statement..........................................................................131.2 Entity resource statement..............................................................................151.3 Budget measures...........................................................................................18

Section 2: Outcomes and planned performance.....................................................202.1 Budgeted expenses and performance for Outcome 1....................................212.2 Budgeted expenses and performance for Outcome 2....................................28

Section 3: Budgeted financial statements...............................................................343.1 Budgeted financial statements.......................................................................343.2 Budgeted financial statements tables............................................................35

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Department of Employment Budget Statements

DEPARTMENT OF EMPLOYMENT

Section 1: Entity overview and resources

1.1 STRATEGIC DIRECTION STATEMENT

Employment is central to national economic strength and wellbeing. The purpose of the Department of Employment is to provide policy advice and deliver programs that further the Australian Government’s agenda to create more jobs, increase productivity and foster safe and fair workplaces. The department has two Outcomes: Foster a productive and competitive labour market through

employment policies and programs that assist job seekers into work, meet employer needs and increase Australia’s workforce participation.

Facilitate jobs growth through policies that promote fair, productive and safe workplaces.

To achieve these outcomes, the major priorities in 2016–17 include: lifting young people’s employability skills and providing them with

real work experience by implementing a suite of measures under the Government’s Youth Employment Package, central to which is the Youth Jobs PaTH which includes employability skills training, internship placements, the Youth Bonus wage subsidy and the employer mobilisation strategy to encourage participation in the initiative by employers

delivering efficient and effective employment services, helping more job seekers find and keep a job, through the continued implementation of jobactive

encouraging more businesses to employ eligible job seekers, helping expand businesses and boost the economy, including through improved wage subsidies and reducing red tape for employers

encouraging entrepreneurship and self-employment among young people, including through the expansion of the New Enterprise Incentive Scheme to assist up to 8600 participants each year start and manage their own small business by providing nationally-accredited training, mentoring and business advice and other support

supporting young people and parents to prepare for employment through the continued delivery of the Transition to Work service, Empowering YOUth initiatives and ParentsNext

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providing work-like experiences for job seekers, improving job prospects and developing employability skills, while contributing to community activities through the National Work Experience Programme and Work for the Dole

strengthening the job seeker compliance framework so that it provides the necessary incentive for job seekers to comply with their mutual obligation requirements

developing policies to improve workforce participation opportunities for all Australians, specifically young people, mature-age people, Indigenous Australians, women and parents

assisting workers who have unpaid employment entitlements when they are made redundant by the liquidation or bankruptcy of their employer

working cooperatively and productively to ensure an effective, productive and fair national workplace relations system

contributing to higher productivity through implementation of national approaches to workplace health and safety and workers’ compensation laws, as well as advising government on reforms to improve the Comcare workers’ compensation scheme

providing legal and policy advice on the operation of the national workplace relations system

engaging with relevant international forums to promote Australia’s national interests and inform domestic policies

identifying and implementing opportunities to contribute to the government’s deregulation agenda by reducing unnecessary compliance burdens and leading cultural change.

The unemployment rate—particularly amongst young people—and future changes in the nature of the workplace and workforce participation are ongoing challenges for the department. Development of evidence-based policies and the formulation of long-term strategies to shape the future of Australia’s labour force will assist the department to meet these challenges. Further information about the activities of the Department of Employment can be found at www.employment.gov.au and in the Department of Employment Corporate Plan 2015–2019.Budget measures for 2016–17 for the department are presented in Table 1.2.

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1.2 ENTITY RESOURCE STATEMENT

Table 1.1 shows the total funding from all sources available to the entity for its operations and to deliver programs and services on behalf of the government. The table summarises how resources will be applied by outcome (government strategic policy objectives) and by administered (on behalf of the government or the public) and departmental (for the entity’s operations) classification.For more detailed information please refer to Budget Paper No. 4—Agency Resourcing.Information in this table is presented on a resourcing (i.e. appropriations/cash available) basis, whilst the ‘Budgeted expenses by Outcome X’ tables in Section 2 and the financial statements in Section 3 are presented on an accrual basis. Table 1.1: Department of Employment resource statement—Budget estimates for 2016–17 as at Budget May 2016

2015–16 Estimated actual

$'000

2016–17 Estimate

$'000

DepartmentalAnnual appropriations - ordinary annual services (a)

Prior year appropriations available 115,528 111,713Departmental appropriation (b) (c) 280,305 283,528s 74 retained revenue receipts (d) 19,604 13,604Departmental capital budget (e) 27,378 27,310

Annual appropriations - other services - non-operating (f)Equity injection 15,408 6,253

Total departmental annual appropriations 458,223 442,408Total departmental resourcing 458,223 442,408AdministeredAnnual appropriations - ordinary annual services (a)

Prior year appropriations available (g) 126,664 -Outcome 1 (h) 1,250,502 1,645,006Outcome 2 21,672 19,517Payments to corporate entities (i) 7,727 6,119

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Table 1.1: Department of Employment resource statement—Budget estimates for 2016–17 as at Budget May 2016 (continued)

2015–16 Estimated actual

$'000

2016–17 Estimate

$'000Total administered annual appropriations 1,406,565 1,670,642Total administered special appropriations (j) 533,652 425,660less payments to corporate entities from annual/special appropriations 7,727 6,119Total administered resourcing 1,932,490 2,090,183Total resourcing for Department of Employment 2,390,713 2,532,591

Prepared on a resourcing (i.e. appropriations available) basis.

Please note: All figures shown above are GST exclusive—these may not match figures in the cash flow statement.

(a) Appropriation Bill (No.1) 2016–17.

(b) Excludes $5.1m subject to quarantine by Department of Finance under section 51 of the Public Governance, Performance and Accountability Act 2013 (PGPA Act). For this reason the figures do not align to Budget Paper 4.

(c) There is a difference of $0.3m between the appropriation revenue recognised in Table 3.1 and the appropriation shown in the agency resource table due to 2015–16 supplementary appropriation that was not included in the appropriation bills due to timing.

(d) Estimated retained revenue receipts under section 74 of the PGPA Act.(e) Departmental capital budgets are not separately identified in Appropriation Bill (No.1) and form part of

ordinary annual services items. Please refer to Table 3.5 for further details. For accounting purposes, this amount has been designated as a 'contribution by owner’.

(f) Appropriation Bill (No.2) 2016–17.(g) Excludes $135.6m subject to quarantine by Department of Finance under section 51 of the Public

Governance, Performance and Accountability Act 2013 (PGPA Act). For this reason the figures do not align to Budget Paper 4.

(h) Excludes $272.5m subject to quarantine by Department of Finance under section 51 of the Public Governance, Performance and Accountability Act 2013 (PGPA Act). For this reason the figures do not align to Budget Paper 4.

(i) Corporate entities are corporate Commonwealth entities and Commonwealth companies as defined under the PGPA Act.

(j) Excludes Special Public Money held in accounts like Other Trust Monies accounts (OTM), Services for Other Government and Non-agency Bodies accounts (SOG) or Services for Other Entities and Trust Moneys accounts (SOETM)). For further information on special appropriations and special accounts, please refer to Budget Paper No. 4—Agency Resourcing. Please also see Table 2.1 for further information on outcome and program expenses broken down by various funding sources, e.g. annual appropriations, special appropriations and special accounts.

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Table 1.1: Department of Employment resource statement—Budget estimates for 2016–17 as at Budget May 2016 (continued)Third party payments from and on behalf of other entities

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2015–16 Estimated

actual $'000

2016–17 Estimate

$'000Payments made by other entities on behalf of Department of Employment (disclosed above)

34,234 15,686

Receipts received from other entities for the provision of services(disclosed above in s74 Retained revenue receipts section above)

19,604 13,604

Payments made to corporate entities w ithin the Portfolio Comcare (Annual Appropriation Bill 1) 7,727 6,119

1.3 BUDGET MEASURES

Budget measures in Part 1 relating to the Department of Employment are detailed in Budget Paper No. 2 and are summarised below.

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Table 1.2: Entity 2016–17 Budget measuresPart 1: Measures announced since the 2015–16 Mid-Year Economic and Fiscal Outlook (MYEFO)

Program2015–16

$'0002016–17

$'0002017–18

$'0002018–19

$'0002019–20

$'000Revenue measures Seacare Scheme - cost recovery arrangements 2.3

Administered revenues - nfp nfp nfp nfpDepartmental revenues - nfp nfp nfp nfp

Total - nfp nfp nfp nfpTotal revenue measures

Administered - nfp nfp nfp nfpDepartmental - nfp nfp nfp nfp

Total - nfp nfp nfp nfpExpense measures A Streamlined Pathw ay to Permanent Residence for New Zealand Citizens (a) 1.1

Administered expenses - - - - 184 Departmental expenses - - - - -

Total - - - - 184 Job Commitment Bonus - cessation 1.1

Administered expenses - (47,677) (63,571) (62,732) (62,178) Departmental expenses - - (192) (263) (264)

Total - (47,677) (63,763) (62,995) (62,442) National Disability Insurance Scheme Savings Fund (b) 1.1

Administered expenses - 124 422 655 613 Departmental expenses - - - - -

Total - 124 422 655 613 Youth Employment Package - encouraging entrepreneurship and self-employment 1.1

Administered expenses - 13,503 22,265 22,365 22,568 Departmental expenses - 1,777 1,963 1,663 1,591

Total - 15,280 24,228 24,028 24,159 Youth Employment Package - Youth Jobs PaTH (Prepare - Trial - Hire) 1.1

Administered expenses - (5,923) 61,216 75,170 75,130 Departmental expenses - 4,975 6,647 6,523 6,209

Total - (948) 67,863 81,693 81,339

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Table 1.2: Entity 2016–17 Budget measuresPart 1: Measures announced since the 2015–16 Mid-Year Economic and Fiscal Outlook (MYEFO) (continued)

Program2015–16

$'0002016–17

$'0002017–18

$'0002018–19

$'0002019–20

$'000Youth Employment Package - Work for the Dole - reform 1.1

Administered expenses - (113,860) (108,788) (110,394) (109,865) Departmental expenses - 15 - - -

Total - (113,845) (108,788) (110,394) (109,865) Total expense measures

Administered - (153,833) (88,456) (74,936) (73,548) Departmental - 6,767 8,418 7,923 7,536

Total - (147,066) (80,038) (67,013) (66,012) Capital measures Youth Employment Package - encouraging entrepreneurship and self-employment 1.1

Administered capital - - - - - Departmental capital - 877 - - -

Total - 877 - - - Youth Employment Package - Youth Jobs PaTH (Prepare - Trial - Hire) 1.1

Administered capital - - - - - Departmental capital - 4,798 - - -

Total - 4,798 - - - Youth Employment Package - Work for the Dole - reform 1.1

Administered capital - - - - - Departmental capital - 278 - - -

Total - 278 - - - Total capital measures

Administered capital - - - - - Departmental capital - 5,953 - - -

Total - 5,953 - - -

(a) The lead entity for measure A Streamlined Pathway to Permanent Residence for New Zealand Citizens is the Department of Immigration and Border Protection. The full measure description and package details appear in Budget Paper No. 2 under the Immigration and Border Protection portfolio.

(b) The lead entity for measure National Disability Insurance Scheme Saving Fund is the Department of Social Services. The full measure description and package details appear in Budget Paper No. 2 under the Social Services portfolio.

Prepared on a Government Finance Statistics (fiscal) basis. Figures displayed as a negative (-) represent a decrease in funds and a positive (+) represent an increase in funds.

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Section 2: Outcomes and planned performance

Government outcomes are the intended results, impacts or consequences of actions by the Government on the Australian community. Commonwealth programs are the primary vehicle by which government entities achieve the intended results of their outcome statements. Entities are required to identify the programs which contribute to government outcomes over the Budget and forward years.Each outcome is described below together with its related programs. The following provides detailed information on expenses for each outcome and program, further broken down by funding source.

Note:From 1 July 2015, performance reporting requirements in the Portfolio Budget Statements sit alongside those required under the enhanced Commonwealth performance framework. It is anticipated that the performance criteria described in Portfolio Budget Statements will be read with broader information provided in an entity’s corporate plans and annual performance statements—included in annual reports from October 2016—to provide an entity’s complete performance story.

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2.1 BUDGETED EXPENSES AND PERFORMANCE FOR OUTCOME 1Outcome 1: Foster a productive and competitive labour market through employment policies and programmes that assist job seekers into work, meet employer needs and increase Australia’s workplace participation.

Linked programs

Department of Human Services Program 1.1: Services to the Community—Social Security and

Welfare

Contribution to Outcome 1 made by linked programsThe Department of Human Services makes payments on behalf of the Department of Employment.

Department of Social Services Program 1.10: Working Age Payments

Contribution to Outcome 1 made by linked programsThe jobactive program is closely linked to the Social Services portfolio through providing means in which job seekers receiving working age income support can meet their mutual obligation requirements and also providing services to help those job seekers to find work.

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Budgeted expenses for Outcome 1This table shows how much the entity intends to spend (on an accrual basis) on achieving the outcome, broken down by program, as well as by Administered and Departmental funding sources. Table 2.1.1: Budgeted expenses for Outcome 1

2015–16 Estimated

actual$'000

2016–17Budget

$'000

2017–18 Forw ard estimate

$'000


$'000

2019–20Forw ard estimate

$'000

Administered expensesjobactive 1,180,356 1,506,292 1,584,790 1,599,846 1,601,364Job Commitment Bonus 34,234 15,686 - - -Empow ering YOUth Initiatives 10,100 17,600 17,600 5,050 50ParentsNext 2,721 14,322 21,080 20,191 20,191Transition to Work 18,541 89,405 96,855 99,618 99,618Seasonal Worker Programme 1,277 1,701 1,727 1,752 1,780Mature Age Employment 3,273 - - - -

Administered total 1,250,502 1,645,006 1,722,052 1,726,457 1,723,003Total expenses for Program 1.1 1,250,502 1,645,006 1,722,052 1,726,457 1,723,003

Administered expensesOrdinary annual services (Appropriation Bill No. 1)

1,250,502 1,645,006 1,722,052 1,726,457 1,723,003

Administered total 1,250,502 1,645,006 1,722,052 1,726,457 1,723,003Departmental expenses

Departmental appropriation 210,229 214,338 217,253 216,747 215,390s 74 Retained revenue receipts (a) 14,703 10,203 10,203 10,203 10,203Expenses not requiring appropriation in the Budget year (b)

18,638 21,556 22,312 22,289 22,298

Departmental total 243,570 246,097 249,768 249,239 247,891Total expenses for Outcome 1 1,494,072 1,891,103 1,971,820 1,975,696 1,970,894

2015–16 2016–17Average staffing level (number) 1,273 1,309

Program 1.1: Employment Services

Outcome 1 Totals by appropriation type

(a) Estimated expenses incurred in relation to receipts retained under section 74 of the PGPA Act.

(b) Expenses not requiring appropriation in the Budget year are made up of depreciation expenses, amortisation expenses and audit fees.

Note: Departmental appropriation splits and totals are indicative estimates and may change in the course of the budget year as government priorities change.

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Table 2.1.2: Performance criteria for Outcome 1Table 2.1.2 below details the performance criteria for each program associated with Outcome 1. It also summarises how each program is delivered and where 2016–17 Budget measures have created new programs or materially changed existing programs.

Outcome 1—Foster a productive and competitive labour market through employment policies and programs that assist job seekers into work.

Program 1.1—Employment services The Australian Government’s employment services system—jobactive—has four key objectives: help job seekers find and keep a job; help job seekers move from welfare to work; help job seekers meet their mutual obligations; and that jobactive organisations deliver quality services. The objectives of Program 1.1 contribute to Outcome 1 by helping job seekers move into employment.

Purpose Our role is to foster a productive and competitive labour market through employment policies and programs that increase workforce participation and facilitate jobs growth.1

Delivery jobactive services include:• assisting job seekers to find and keep a job and ensuring employers are

provided with job seekers who meet their business needs• Work for the Dole and the National Work Experience Programme provide

job seekers with work-like experience and make a positive contribution to their local community

• New Enterprise Incentive Scheme assists eligible job seekers to start and run a small business

• Harvest Labour Services and the National Harvest Labour Information Service support the requirements of growers in the horticulture industry for harvest workers.

Transition to Work provides intensive assistance to young people who have disengaged from work and study.The Youth Employment Package delivers a Youth Jobs PaTH for young job seekers under 25 years to improve employment outcomes. This pathway has three elements:• Prepare: Industry endorsed Employability Skills Training for up to six weeks

to develop basic employability skills, including those required to identify and secure sustainable employment.

• Trial: Up to 30,000 internship placements of four to 12 weeks will be offered each year to enable businesses and job seekers to trial their employment fit.

• Hire: An enhanced Youth Bonus wage subsidy of up to $10,000 for job seekers under 25 years with barriers to employment and up to $6,500 for the most job-ready job seekers to support the employment of young people.

The Youth Employment Package also encourages entrepreneurship and self-employment including through expansion of the New Enterprise Incentive

1 The Department of Employment’s purpose statement is published within the Department of Employment Corporate Plan 2015–19.

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Scheme.In addition to jobactive, the Seasonal Worker Programme is designed to assist Australia’s closest regional neighbours. It helps Australian businesses to employ workers from participating Pacific Island countries and Timor-Leste when they cannot find enough local labour to satisfy seasonal demand in the agriculture and accommodation industries.

Performance information2

Year Performance criteria Targets

2015–16 Job seekers find and keep a job

• Count of job placements: 380,000, including38,000 Indigenous placementsForecast achievement against 2015–16 target is 380,000 including 38,000 Indigenous placements

• Proportion of job placements sustained to four weeks: 68%Forecast achievement against 2015–16 target is 55%

• Proportion of job placements sustained to 12 weeks: 44%Forecast achievement against 2015–16 target is 45%

• Proportion of job placements sustained to 26 weeks: 24%Forecast achievement against 2015–16 target is 25%

• Proportion of job seekers employed 3 months following participation in employment services:

Stream A 55%Stream B 35%Stream C 25%Overall 45%

Forecast achievement against 2015–16 targets is:


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Performance information


2016–17 Job seekers find and keep a job

• Count of job placements: 380,000, including 38,000 Indigenous placements

• Proportion of job placements sustained to four weeks3: 55%

• Proportion of job placements sustained to 12 weeks: 45%

• Proportion of job placements sustained to 26 weeks4: 25%

• Proportion of job seekers employed 3 months following participation in employment services:


2017–18 and beyond

Job seekers find and keep a job

As per 2016–17

2015–16 Job seekers move from welfare to work

• Proportion of job seekers moving off income support, or with reduced reliance on income support, six months after participation in jobactive: 40%Forecast achievement against 2015–16 target is 40%

• Cost per employment outcome: $25005

Forecast achievement against 2015–16 target is $2500

2016–17 Job seekers move from welfare to work

As per 2015–16


Job seekers move from welfare to work

As per 2015–16

2016–17 Young people move into work or education

• Proportion of placements sustained to a 12 week Employment or Hybrid Outcome 6 , or a 26 week Education Outcome: 45%

• Proportion of placements that are converted to Sustainability Outcomes 7 : : 25%

3 Only job placements which are eligible for a paid four, 12 and 26 week outcome will be included in the respective sustainability measures.5 Program costs take into account expenditure such as Employment Fund expenditure, service fees and paid outcomes. The number of employment outcomes is taken from the estimated number of job seekers who are employed three months following participation in the program.4 The targets for the outcome conversion rate performance measures included in the 2015–16 PBS were based on data under the previous employment services program, Job Services Australia. The outcome conversion rates have been revised incorporating the first nine months of jobactive to produce more meaningful targets that better reflect the objectives of the program.6 A Hybrid Outcome is 25 hours per week combining Employment and Education.7 A Sustainability Outcome is 26 weeks of Employment, or 26 weeks combining Employment and Education for 25 hours per week. Only placements which are eligible for a Sustainability Outcome will be included in the sustainability measure.

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• Proportion of Transition to Work participants moving off income support, with reduced reliance on income support, or on to Youth Allowance (student) 6 months after participation in the service 8 : 28%


Young people move into work or education

As per 2016–17

2015–16 Job seekers meet their mutual obligations

• Proportion of Work for the Dole participants reporting increased motivation to find a job: 75%Forecast achievement against 2015–16 target is 75%

• Proportion of jobactive appointments attended (for activity tested job seekers, excluding when job seeker had a valid reason for not attending): 90%Forecast achievement against 2015–16 target is 90%

• Proportion of job seekers (with Mutual Obligation requirements) actively looking for work: 95%Forecast achievement against 2015–16 target is 95%

2016–17 Job seekers meet their mutual obligations

As per 2015–16


Job seekers meet their mutual obligations

As per 2015–16

2015–16 jobactive organisations deliver quality services

• Proportion of employers satisfied with the assistance provided by a jobactive organisation: 80%Forecast achievement against 2015–16 target is 80%

• Proportion of jobactive organisations that meet the service delivery requirements: 80%Forecast achievement against 2015–16 target is 80%

2016–17 jobactive organisations deliver quality services

As per 2015–16


jobactive organisations deliver quality services

As per 2015–16

Material changes to Program 1.1 resulting from the following measures:Material changes will result from the Youth Employment package and cessation of the Job Commitment Bonus measures.

8 Only participants receiving income support will be included in this measure.

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2.2 BUDGETED EXPENSES AND PERFORMANCE FOR OUTCOME 2Outcome 2: Facilitate jobs growth through policies that promote fair, productive and safe workplaces.

Budgeted expenses for Outcome 2This table shows how much the entity intends to spend (on an accrual basis) on achieving the outcome, broken down by program, as well as by Administered and Departmental funding sources. Table 2.2.1: Budgeted expenses for Outcome 2

2015–16 Estimated

actual$'000

2016–17Budget

$'000


$'000


$'000


$'000

Administered expensesGeneral Employee Entitlements and Redundancy Scheme

272 - - - -

Fair Entitlements Guarantee 6,025 6,805 1,750 1,750 1,750Special appropriations

Coal Mining Industry (LSL) Act 1992 154,618 154,618 154,618 154,618 154,618Fair Entitlements Guarantee Act 2012 315,193 207,264 195,532 194,591 193,195

Administered total 476,108 368,687 351,900 350,959 349,563Total expenses for Program 2.1 476,108 368,687 351,900 350,959 349,563

Administered expensesInternational Labour Organization Subscription

10,301 10,877 11,112 11,208 11,405

Protected Action Ballots Scheme 1,600 1,600 1,600 1,600 1,600Centre for Workplace Leadership 3,133 - - - -


Program 2.1: Employee Assistance

Program 2.2: Workplace Assistance

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Table 2.2.1: Budgeted expenses for Outcome 2 (continued)2015–16

Estimated actual$'000

2016–17Budget

$'000


$'000


$'000


$'000

Administered expensesComcare 7,727 6,119 6,160 6,198 6,241

Special appropriationsAsbestos-related Claims Act 2005 28,637 30,045 28,316 29,787 30,750Safety, Rehabilitation & Compensation Act 1998

35,174 33,703 32,517 31,253 29,486


Administered expensesOrdinary annual services (Appropriation Bill No. 1)

29,058 25,401 20,622 20,756 20,996

Special appropriations 533,622 425,630 410,983 410,249 408,049Administered total 562,680 451,031 431,605 431,005 429,045

Departmental expensesDepartmental appropriation 70,076 69,190 69,612 69,608 69,285s 74 Retained revenue receipts (a) 4,901 3,401 3,401 3,401 3,401Expenses not requiring appropriation in the Budget year (b)

6,369 6,614 6,414 6,248 6,120

Departmental total 81,346 79,205 79,427 79,257 78,806Total expenses for Outcome 2 644,026 530,236 511,032 510,262 507,851

2015–16 2016–17Average staffing level (number) 497 498

Program 2.3: Workers' Compensation Payments

Outcome 2 Totals by appropriation type

(a) Estimated expenses incurred in relation to receipts retained under section 74 of the PGPA Act.

(b) Expenses not requiring appropriation in the Budget year are made up of depreciation expenses, amortisation expenses and audit fees.

Note: Departmental appropriation splits and totals are indicative estimates and may change in the course of the budget year as government priorities change.

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Table 2.2.2: Performance criteria for Outcome 2Table 2.2.2 below details the performance criteria for each program associated with Outcome 2. It also summarises how each program is delivered and where 2016–17 Budget measures have created new programs or materially changed existing programs.

Outcome 2—Facilitate jobs growth through policies that promote fair, productive and safe workplaces.

Program 2.1—Employee assistanceContributes to Outcome 2 through the promotion of fair workplaces by ensuring the protection of employee entitlements in certain circumstances.

Purpose Our role is to foster a productive and competitive labour market through employment policies and programs that increase workforce participation, and facilitate jobs growth through policies that promote fair, productive and safe workplaces.

Delivery To promote fair workplaces by ensuring the protection of employee entitlements in certain circumstances, the program delivers two services:• Fair Entitlements Guarantee—established under the Fair Entitlements

Guarantee Act 2012 to provide financial assistance for certain unpaid employment entitlements when an employee loses their job through the liquidation or bankruptcy of their employer on or after 5 December 2012.

• Coal Mining Industry (Long Service Leave) Administration Act 1992 financing arrangements—under this Act the cost of portable long service leave entitlements is managed through a central fund administered by the Coal Mining Industry (Long Service Leave Funding) Corporation. Monthly levy collection transfers are made from the consolidated revenue fund to the central fund.



Year Performance criteria(a) Targets

2015–16 Fair Entitlements Guarantee program functions effectively

• Fair Entitlements Guarantee—percentage of claims processed within 16 weeks of receipt of an effective claim: 80%Forecast achievement against 2015–16 target is 92%

• Fair Entitlements Guarantee—average processing time for all claims: 14 weeksForecast achievement against 2015–16 target is 11 weeks

• Fair Entitlements Guarantee—claim payments are correct: 95%

• Forecast achievement against 2015–16 target is 95%, subject to annual audit processes

• Fair Entitlements Guarantee—claimants satisfied with the department’s administration of Fair Entitlements Guarantee: 80%Forecast achievement against 2015–16 target is 80%

• Fair Entitlements Guarantee—insolvency Practitioners satisfied with the administration of Fair Entitlements Guarantee: 80%Forecast achievement against 2015–16 target is 80%

2016–17 Fair Entitlements Guarantee program functions effectively

As per 2015–16


Fair Entitlements Guarantee program functions effectively

As per 2015–16

Material changes to Program 2.1 resulting from the following measures:Nil

(a) New or modified performance criteria that reflect new or materially changed programs are shown in underlined italics.

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Program 2.2—Workplace assistanceContributes to Outcome 2 and to the Government’s productivity agenda by ensuring the operation of the workplace relations system through initiatives designed to encourage employers and employees to adopt flexible and modern workplace relations.

Purpose Our role is to foster a productive and competitive labour market through employment policies and programs that increase workforce participation, and facilitate jobs growth through policies that promote fair, productive and safe workplaces.

Delivery The department manages the following in delivering Program 2.2:• Protected Action Ballots Scheme—costs incurred by the Australian

Electoral Commission in relation to protected action ballots. A protected action ballot is a statutory prerequisite to protected industrial action under the Fair Work Act.

• International Labour Organization (ILO)—the Australian Government’s annual membership subscription to the ILO. The government works with other member states and representatives from employer and employee organisations to: participate in international policy discussions on labour issues; contribute to technical cooperation in the Asia-Pacific region; report on standards at the national level; and, participate as a member of the ILO Governing Body.

• Australian Government Building and Construction WHS Accreditation Scheme (the Accreditation Scheme)—only companies accredited by the Office of the Federal Safety Commissioner (OFSC) can undertake most Commonwealth-funded building and construction projects. Accreditation requires high quality work health and safety systems and practices which reduces safety incidents and promotes safer workplaces in the building and construction industry.

Performance measures

Year Performance criteria (b) Targets

2015–16 Commonwealth-funded projects are undertaken by builders accredited by the Office of the Federal Safety Commissioner

• Level of satisfaction of clients with the provision of advice, information, education and promotion of safer workplaces on Australian Government construction sites(c): Effective or above

Forecast achievement against 2015–16 target is Effective or above• Percentage of accreditation applications

assessed and contact made with the applicant within 10 working days of initial application for accreditation: 90%

Forecast achievement against 2015–16 target is 90%

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2016–17 Commonwealth-funded projects are undertaken by builders accredited by the Office of the Federal Safety Commissioner

• Percentage of accreditation applications assessed and contact made with the applicant within 10 working days: 90%

• Satisfaction of accredited companies with the service provided by the OFSC: majority rate the level of service as satisfactory or better

• Companies consider that workplace safety has improved due to accreditation: Majority of companies say accreditation has improved their safety performance


Commonwealth-funded projects are undertaken by builders accredited by the Office of the Federal Safety Commissioner

As per 2016–17

Material changes to Program 2.2 resulting from the following measures:Nil

(b) The full set of key performance indicators for the OFSC will be published annually as part of the Australian Government’s Regulator Performance Framework.

(c) This performance measure will be discontinued from 2016–17 and replaced by the new satisfaction performance measures that are based on broader and more robust data.


Program 2.3—Workers’ compensation paymentsManaged by Comcare, and contributes to Outcome 2 by managing the Comcare Workers’ Compensation Scheme.Further information can be found in the Comcare, the Safety, Rehabilitation and Compensation Commission, and the Seafarers Safety, Rehabilitation and Compensation Authority section of this document.

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Section 3: Budgeted financial statements

Section 3 presents budgeted financial statements which provide a comprehensive snapshot of entity finances for the 2016–17 budget year, including the impact of budget measures and resourcing on financial statements.3.1 BUDGETED FINANCIAL STATEMENTS

3.1.1 Differences between entity resourcing and financial statementsThere is a difference of $0.3 million between the appropriation revenue recognised in Table 3.1 and the appropriation shown in the agency resource table. 2015–16 supplementary appropriation was not included in the appropriation bills due to timing.3.1.2 Explanatory notes and analysis of budgeted financial statementsDepartmentalThe department is budgeting for an operating loss equal to the unappropriated depreciation and amortisation expense of $27.7 million for the 2016–17 financial year.Total revenues are estimated to be $284.7 million and total expenses $325.0 million.Total assets at the end of the 2016–17 financial year are estimated to be $262.9 million. The majority of the assets represent receivables (appropriations receivables).Total liabilities for 2016–17 are estimated at $116.8 million. The largest liability item is accrued employee entitlements.AdministeredAdministered revenues for the 2016–17 budget year are estimated to be $185.0 million, consistent with the 2015–16 estimated actual.Administered expenses in 2016–17 are estimated to be $2.1 billion, an increase of $282.9 million from the 2015–16 estimated actual. This increase is attributable to budget measures and revised program parameters.

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3.2 BUDGETED FINANCIAL STATEMENTS TABLES

Table 3.1: Comprehensive income statement (showing net cost of services) for the period ended 30 June

2015–16 Estimated

actual$'000

2016–17Budget

$'000


$'000


$'000


$'000EXPENSESEmployee benefits 197,911 208,995 215,407 213,684 213,379Suppliers 102,712 88,343 85,522 86,735 85,360Depreciation and amortisation 24,547 27,710 28,266 28,077 27,958Total expenses 325,170 325,048 329,195 328,496 326,697LESS: OWN-SOURCE INCOMEOwn-source revenueSale of goods and rendering of services 19,604 13,604 13,604 13,604 13,604External audit 460 460 460 460 460Total own-source revenue 20,064 14,064 14,064 14,064 14,064GainsOther - - - - -Total gains - - - - -Total own-source income 20,064 14,064 14,064 14,064 14,064Net (cost of)/contribution by services 305,106 310,984 315,131 314,432 312,633Revenue from Government 280,559 283,274 286,865 286,355 284,675Surplus/(deficit) attributable to the Australian Government (24,547) (27,710) (28,266) (28,077) (27,958)OTHER COMPREHENSIVE INCOMEChanges in asset revaluation surplus - - - - -Total other comprehensive income - - - - -Total comprehensive income/(loss) (24,547) (27,710) (28,266) (28,077) (27,958)Total comprehensive income/(loss) attributable to the Australian Government (24,547) (27,710) (28,266) (28,077) (27,958)

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Table 3.1: Comprehensive income statement (showing net cost of services) for the period ended 30 June (continued)Note: Impact of net cash appropriation arrangements

2015–16$'000

2016–17$'000

2017–18$'000

2018–19$'000

2019–20$'000

Total comprehensive income/(loss) excluding depreciation/amortisation expenses previously funded through revenue appropriations.

- - - - -

less depreciation/amortisation expenses previously funded through revenue appropriations (a)

24,547 27,710 28,266 28,077 27,958

Total comprehensive income/(loss) - as per the statement of comprehensive income

(24,547) (27,710) (28,266) (28,077) (27,958)

(a) From 2010–11, the Government introduced net cash appropriation arrangements where Bill 1 revenue appropriations for the depreciation/amortisation expenses of non-corporate Commonwealth entities (and select corporate Commonwealth entities) were replaced with a separate capital budget (the Departmental Capital Budget, or DCB) provided through Bill 1 equity appropriations. For information regarding DCBs, please refer to Table 3.5 Departmental Capital Budget Statement.

Prepared on Australian Accounting Standards basis.

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Table 3.2: Budgeted departmental balance sheet (as at 30 June)

2015–16 Estimated

actual$'000

2016–17Budget

$'000


$'000


$'000


$'000ASSETSFinancial assets

Cash and cash equivalents 2,062 2,316 2,316 2,316 2,316Trade and other receivables 120,752 116,445 115,527 114,260 111,883Other financial assets 4,094 4,094 4,094 4,094 4,094

Total financial assets 126,908 122,855 121,937 120,670 118,293 Non-financial assets

Leasehold improvements 21,748 21,637 22,801 22,238 21,788Infrastructure, plant and equipment 16,883 16,913 17,704 18,324 18,820Intangibles 83,038 89,472 86,481 85,737 85,310Other non-financial assets 12,011 12,011 12,011 12,011 12,011

Total non-financial assets 133,680 140,033 138,997 138,310 137,929 Assets held for sale - - - - -

Total assets 260,588 262,888 260,934 258,980 256,222 LIABILITIESPayables

Suppliers 17,137 17,918 18,755 19,195 19,229Other payables 39,831 36,027 33,745 31,403 29,003

Total payables 56,968 53,945 52,500 50,598 48,232 Provisions

Employee provisions 62,260 62,037 62,732 63,468 63,558Other provisions 1,650 843 675 574 473

Total provisions 63,910 62,880 63,407 64,042 64,031 Total liabilities 120,878 116,825 115,907 114,640 112,263 Net assets 139,710 146,063 145,027 144,340 143,959 EQUITY*Parent entity interest

Contributed equity 198,471 232,534 259,764 287,154 314,731Reserves 3,376 3,376 3,376 3,376 3,376Retained surplus (accumulated deficit) (62,137) (89,847) (118,113) (146,190) (174,148)

Total parent entity interest 139,710 146,063 145,027 144,340 143,959Total equity 139,710 146,063 145,027 144,340 143,959

* Equity is the residual interest in assets after deduction of liabilities.


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Table 3.3: Departmental statement of changes in equity—summary of movement (Budget year 2016–17)

Retained earnings

$'000

Asset revaluation

reserve$'000

Contributed equity/ capital$'000

Total equity

$'000Opening balance as at 1 July 2016

Balance carried forw ard from previous period (62,137) 3,376 198,471 139,710

Adjustment for changes in accounting policies - - - -Adjusted opening balance (62,137) 3,376 198,471 139,710Comprehensive income

Other comprehensive income - - - -Surplus/(deficit) for the period (27,710) - - (27,710)

Total comprehensive income (27,710) - - (27,710)of w hich:

Attributable to the Australian Government (27,710) - - (27,710)Transactions with owners

Contributions by ownersEquity injection - Appropriation - - 6,253 6,253Departmental capital budget (DCB) - - 27,810 27,810

Sub-total transactions with owners - - 34,063 34,063Transfers betw een equity

Transfers betw een equity components - - - -Estimated closing balance as at 30 June 2017 (89,847) 3,376 232,534 146,063

Less: non-controlling interests - - - -Closing balance attributable to the Australian Government (89,847) 3,376 232,534 146,063


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Table 3.4: Budgeted departmental statement of cash flows (for the period ended 30 June)

2015–16 Estimated

actual$'000

2016–17Budget

$'000


$'000


$'000


$'000OPERATING ACTIVITIESCash received

Appropriations 280,115 286,662 286,968 286,806 286,237Sale of goods and rendering of services 19,604 13,604 13,604 13,604 13,604Net GST received 10,272 8,834 8,553 8,673 8,536

Total cash received 309,991 309,100 309,125 309,083 308,377Cash used

Employees 198,199 209,190 214,601 212,896 213,296Suppliers 105,434 87,973 82,142 83,490 82,407s 74 Retained revenue receipts transferred to OPA

10,617 11,683 12,382 12,697 12,674

Total cash used 314,250 308,846 309,125 309,083 308,377Net cash from/(used by) operating activities (4,259) 254 - - -INVESTING ACTIVITIESCash received

Proceeds from sales of infrastructure, plant and equipment

- - - - -

Total cash received - - - - -Cash used

Purchase of infrastructure, plant and equipment and intangibles

46,956 34,063 27,230 27,390 27,577

Total cash used 46,956 34,063 27,230 27,390 27,577Net cash from/(used by) investing activities (46,956) (34,063) (27,230) (27,390) (27,577)FINANCING ACTIVITIESCash received

Contributed equity 46,956 34,063 27,230 27,390 27,577Total cash received 46,956 34,063 27,230 27,390 27,577Cash used

Other - - - - -Total cash used - - - - -Net cash from/(used by) financing activities 46,956 34,063 27,230 27,390 27,577Net increase/(decrease) in cash held (4,259) 254 - - -

Cash and cash equivalents at the beginning of the reporting period 6,321 2,062 2,316 2,316 2,316

Cash and cash equivalents at the end of the reporting period 2,062 2,316 2,316 2,316 2,316


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Table 3.5: Departmental capital budget statement (for the period ended 30 June)

2015–16 Estimated

actual$'000

2016–17Budget

$'000


$'000


$'000


$'000NEW CAPITAL APPROPRIATIONS

Capital budget - Bill 1 (DCB) 27,378 27,310 27,230 27,390 27,577Equity injections - Bill 2 15,408 6,253 - - -

Total new capital appropriations 42,786 33,563 27,230 27,390 27,577Provided for:

Purchase of non-financial assets 42,786 33,563 27,230 27,390 27,577Total items 42,786 33,563 27,230 27,390 27,577

PURCHASE OF NON-FINANCIAL ASSETSFunded by capital appropriations (a) 15,408 6,253 - - -Funded by capital appropriation - DCB (b) 31,548 27,810 27,230 27,390 27,577

TOTAL 46,956 34,063 27,230 27,390 27,577RECONCILIATION OF CASH USED TO ACQUIRE ASSETS TO ASSET MOVEMENT TABLETotal purchases 46,956 34,063 27,230 27,390 27,577

Total cash used to acquire assets 46,956 34,063 27,230 27,390 27,577

(a) Includes both current Bill 2 and prior Act 2/4/6 appropriations and special capital appropriations.

(b) Does not include annual finance lease costs. Includes purchases from current and previous years’ Departmental capital budgets (DCBs).


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Table 3.6: Statement of asset movements (Budget year 2016–17)

Leasehold improvements

$'000

Infrastructure, plant and

equipment$'000

Computer softw are and

intangibles$'000

Total

$'000As at 1 July 2016

Gross book value 34,738 30,687 113,932 179,357Accumulated depreciation/amortisation and impairment

(12,990) (13,804) (30,894) (57,688)

Opening net book balance 21,748 16,883 83,038 121,669Capital asset additions

Estimated expenditure on new or replacement assetsBy purchase - appropriation equity (a) 4,709 3,785 25,569 34,063Total additions 4,709 3,785 25,569 34,063Other movementsDepreciation/amortisation expense (4,820) (3,755) (19,135) (27,710)Total other movements (4,820) (3,755) (19,135) (27,710)

As at 30 June 2017Gross book value 39,447 34,472 139,501 213,420Accumulated depreciation/ amortisation and impairment

(17,810) (17,559) (50,029) (85,398)

Closing net book balance 21,637 16,913 89,472 128,022

(a) Appropriation equity refers to Appropriation Bill (No. 1) 2015–16 for depreciation/amortisation expenses, DCBs or other operational expenses and equity injections appropriations provided through Appropriation Bill (No. 2) 2015–16, including CDABs.


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Table 3.7: Schedule of budgeted income and expenses administered on behalf of Government (for the period ended 30 June)

2015–16 Estimated

actual$'000

2016–17Budget

$'000


$'000


$'000


$'000EXPENSES

Suppliers 1,125,287 1,329,410 1,375,780 1,374,964 1,384,295Subsidies 193,420 371,350 377,875 394,631 385,465Personal benefits 407,078 294,023 294,288 295,088 295,620Grants 87,397 101,254 105,714 92,779 86,668

Total expenses administered on behalf of Government 1,813,182 2,096,037 2,153,657 2,157,462 2,152,048LESS:OWN-SOURCE INCOMEOwn-source revenueTaxation revenue

Other taxes 154,618 154,618 154,618 154,618 154,618Total taxation revenue 154,618 154,618 154,618 154,618 154,618Non-taxation revenue

Recoveries 23,632 23,632 23,632 23,632 23,632Other revenue 6,753 6,753 6,753 6,753 6,753

Total non-taxation revenue 30,385 30,385 30,385 30,385 30,385Total own-source revenue administered on behalf of Government 185,003 185,003 185,003 185,003 185,003Total own-sourced income administered on behalf of Government 185,003 185,003 185,003 185,003 185,003Net cost of/(contribution by) services 1,628,179 1,911,034 1,968,654 1,972,459 1,967,045Surplus/(deficit) (1,628,179) (1,911,034) (1,968,654) (1,972,459) (1,967,045)OTHER COMPREHENSIVE INCOMEItems not subject of subsequent

Changes in asset revaluation surplus - - - - -Total other comprehensive income - - - - -Total comprehensive income/(loss) (1,628,179) (1,911,034) (1,968,654) (1,972,459) (1,967,045)


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Table 3.8: Schedule of budgeted assets and liabilities administered on behalf of Government (as at 30 June)

2015–16 Estimated

actual$'000

2016–17Budget

$'000


$'000


$'000


$'000ASSETS Financial assets

Taxation receivables 14,002 14,002 14,002 14,002 14,002Trade and other receivables 18,267 18,267 18,267 18,267 18,267Other investments 224,658 224,658 224,658 224,658 224,658

Total financial assets 256,927 256,927 256,927 256,927 256,927Non-financial assets

Other non-financial assets 5,355 5,590 5,590 5,687 5,786Total non-financial assets 5,355 5,590 5,590 5,687 5,786Total assets administered on behalf of Government 262,282 262,517 262,517 262,614 262,713LIABILITIESPayables

Suppliers 52,076 52,076 52,076 52,076 52,076Subsidies 24,974 24,974 24,974 24,974 24,974Personal benefits 6,691 6,691 6,691 6,691 6,691Grants - - - - -Other payables 2,786,628 2,770,844 2,759,665 2,748,765 2,709,024

Total payables 2,870,369 2,854,585 2,843,406 2,832,506 2,792,765Total liabilities administered on behalf of Government 2,870,369 2,854,585 2,843,406 2,832,506 2,792,765Net assets/(liabilities) (2,608,087) (2,592,068) (2,580,889) (2,569,892) (2,530,052)


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Table 3.9: Schedule of budgeted administered cash flows (for the period ended 30 June)

2015–16 Estimated

actual$'000

2016–17Budget

$'000


$'000


$'000


$'000OPERATING ACTIVITIESCash received

Taxes 154,618 154,618 154,618 154,618 154,618Net GST received 112,529 132,941 137,578 137,496 138,430Other 30,385 30,385 30,385 30,385 30,385

Total cash received 297,532 317,944 322,581 322,499 323,433Cash used

Grant 79,670 95,135 99,554 86,581 80,427Subsidies paid 193,420 371,350 377,875 394,631 385,465Personal benefits 407,078 294,023 294,288 295,088 295,620Suppliers 1,238,261 1,462,586 1,513,358 1,512,557 1,522,824Payments to corporate entities 7,727 6,119 6,160 6,198 6,241

Total cash used 1,926,156 2,229,213 2,291,235 2,295,055 2,290,577Net cash from/(used by) operating activities (1,628,624) (1,911,269) (1,968,654) (1,972,556) (1,967,144)Net increase/(decrease) in cash held (1,628,624) (1,911,269) (1,968,654) (1,972,556) (1,967,144)

Cash and cash equivalents at beginning of reporting period

104 - - - -

Cash from Off icial Public Account for:- Appropriations 1,813,553 2,096,302 2,153,687 2,157,589 2,152,177- GST appropriations 112,529 132,941 137,578 137,496 138,430

Total cash from Official Public Account 1,926,082 2,229,243 2,291,265 2,295,085 2,290,607Cash to Official Public Account for:

- Appropriations (185,033) (185,033) (185,033) (185,033) (185,033)- Return of GST appropriations (112,529) (132,941) (137,578) (137,496) (138,430)

Total cash to Official Public Account (297,562) (317,974) (322,611) (322,529) (323,463)Cash and cash equivalents at end of reporting period - - - - -


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Table 3.10: Administered capital budget statement (for the period ended 30 June)The department has no administered capital purchases to report. For this reason Table 3.10 is not presented. Table 3.11: Statement of administered asset movements (Budget year 2016–17) The department has no administered asset movements to report. For this reason Table 3.11 is not presented.

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