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Explanatory note
This explanatory note relates to this Bill as introduced into Parliament.
The following Bills are cognate with this Bill:
Appropriation (Parliament) Bill 1996,
Appropriation (Special Offices) Bill 1996,
Appropriation (1995-96 Debt Retirement) Bill 1996,
Motor Vehicles Taxation Amendment Bill 1996,
Business Franchise Licences (Petroleum Products) Amendment Bill
1996,
Road Improvement (Special Funding) Amendment Bill 1996.
The Bill relates to appropriations from the Consolidated Fund--the principal
account of the Government for Budget Sector transactions. The Consolidated
Fund could be considered as the "public purse" and largely comprises
receipts from, and payments out of, taxes, fines, some regulatory fees,
Commonwealth grants and income from Crown assets.
In addition to allocations from the Consolidated Fund, most Budget Sector
agencies would have other sources of moneys available to them. These
moneys could arise from user charges, part retention of asset sale proceeds,
industry contributions, etc. These are not appropriated by Parliament as they
are not in the nature of taxes or other mandatory levies for which a service is
not provided in return for payment.
The Budget Papers refer to a number of aggregates, each of which has its
own purpose in explaining the financial operations of the Budget Sector. The
main Budget Sector aggregates are:
Total Payments:
Total cash outflows from all sources of funds (with adjustments to remove
intra sector transactions, eg where one agency partly funds another's
operations or where an agency makes tax payments to Crown receipts).
Useful in measuring the total cash resources applied directly to a function of
government (eg health, education).
Outlays:
Total payments less:
· user charges (in the case of current outlays), and
· asset sales and receipt of advances repaid (in the case of capital
outlays).
Measures the net cost (on a cash basis) of a service to be met by parties other
than by the service recipients.
Total Expenses:
Total amount incurred in the provision of goods and services, regardless of
whether a cash payment is made to meet the expense in the same year, in a
later year, or at all.
Represents the accrual accounting equivalent of Total Payments.
Explanatory note page 2
Net Cost of Services:
Total expenses less user charges revenue and other revenues retained by
agencies (eg donations).
Represents the amount which ultimately has to be funded by the "public
purse" in respect of the services provided in the year.
Consolidated Fund Appropriation:
Outlays plus financing transactions (eg debt repayments) less the use of other
funds available to agencies (eg donations; cash balances).
Represents the amount of cash to be provided from the "public purse" in the
Budget year.
The relationship between the main Budget Sector aggregates for 1996-97 (in
comparison with 1995-96) is shown in the following tables.
The first starts with the total payments figure, showing how this relates to the
Consolidated Fund.
The second starts with the total expenses of the Budget, again indicating how
this figure relates to the Consolidated Fund appropriation. It should be noted
that accrual accounting concepts relate primarily to operating (ie current)
transactions rather than capital.
The tables include the financial information relating to the Legislature for
which appropriation is to be made under the proposed Appropriation
(Parliament) Act 1996 and to the Ombudsman, State Electoral Office,
Independent Commission Against Corruption and Office of the Director of
Public Prosecutions for which appropriation is to be made under the proposed
Appropriation (Special Offices) Act 1996.
Explanatory note page 3
Cash Presentation
1995-96
1996-97
Current
Capital
Current
Capital
$m
$m
$m
$m
Total Payments (including Treasurer's
19,771
3,322
20,547
3,583
Advance)
less User Charges
1,192
n.a.
1,301
n.a.
less Advances Repaid to the Budget
n.a.
1,896
n.a.
139
Sector
less Asset Sale Proceeds
n.a.
164 n.a.
409
equals Outlays
18,579
1,262
19,246
3,035
plus Advances and Debt Repaid by
n.a.
1,850
n.a.
979
the Budget Sector
plus Advances Repaid to the Budget
...
1,896
...
139
Sector
plus Asset Sales Proceeds not
n.a.
27 ...
266
Retained by Agencies
plus Consolidated Fund Receipts
40
...
44 ...
Offset to Outlays
plus Consolidated Fund Receipts
9
n.a.
12 n.a.
Classified as User Charges
plus Reclassification of Payments to
1,396
Equate to Accrual Budgeting
Principles
plus Reclassifications for Government
38
(7)
43
34
Finance Statistics Principles
plus Intra Sector Payments
904
20
898
20
less Other Agency Receipts
1,036
38
1,033
26
less Agencies' Use of Cash and
19
34
9
41
Investments (net)
Consolidated Fund
19,911
3,580
20,460
3,147
Appropriation(a)
Explanatory note page 4
Accrual Presentation
1995-96
1996-97
Current
Current
$m
$m
Total Expenses (including Treasurer's Advance)
23,272
23,774
less Agency User Charges Revenue
1,266
1,382
less Other Agency Retained Revenues
933
934
less Net Gain on Sale of Property, Plant and Equipment
...
5
plus Net Loss on Sale of Property, Plant and Equipment
14
...
equals Net Cost of Services
2 1,087
2 1,453
plus Net Gain on Sale of Property, Plant and Equipment
...
5
plus Increase in Inventories and Prepayments
...
2
plus In Kind Revenues
18
16
less Non-Funded Expenses
961
1,003
less Net Increase in Accrued Expenses
188
...
less Net Decrease in Accrued Revenues
11
4
less Net Decrease in Inventories and Prepayments
1
...
less Agencies' Use of Cash and Investments (net)
19
9
less Net Loss on Sale of Property, Plant and Equipment
14
...
equals Consolidated Fund Appropriation (a)
19,911
20,460
As this Bill is being presented prior to the conclusion of the 1995-96
financial year, it does not include details of any adjustment of the 1995-96
Advance to the Treasurer or payments made during 1995-96 under section
22 of the Public Finance and Audit Act 1983. Details of any such payments
will be provided in the Public Accounts for 1995-96 and, in order to comply
with legislative requirements, in the 1997 Appropriation Bill.
(a) Includes amounts to be appropriated under the Appropriation (Parliament) Bill 1996 and
the Appropriation (Special Offices) Bill 1996.
Explanatory note page 5