Department of Infrastructure and Regional Development
Administered Budget Variances Commentary
Budget Variances Commentary
Administered Schedule of Comprehensive Income
Employee expenses are under budget by $4.0 million or 22% mainly due to the increased use of contractors and Service Delivery Agreements to deliver services in the Indian Ocean Territories.
Supplier expenses are over budget by $14 million or 11% mainly due to:
- subsequent budget revisions and reclassifications for the delivery of services on Norfolk Island from 1 July 2016; and
- a $5 million payment reclassified from Departmental expenses for environmental management costs associated with the Western Sydney Airport.
The Department's subsidy programs are demand driven. The variance of $38 million or 16% reflects a slower than anticipated uptake of the expansion of the Tasmanian Freight Equalisation Scheme.
Grant expenses are over budget by $815 million mainly as a result of a Determination by the Treasurer to bring forward Financial Assistance Grants from 2017–18.
Depreciation and amortisation expenses are over budget by $23 million or 76% due to revaluations and reassessment of asset useful lives at 30 June 2016, recognised after estimates for 2016–17 were prepared.
Write-down and impairment of assets mainly reflects the write-down of land at Moorebank NSW as a result of entering into a finance lease for nominal consideration with the Moorebank Intermodal Company Ltd (MICL) (see Note 2.1E).
Concessional loan expenses are under budget by $31 million or 21% due to changes in the drawdown schedule and present value calculations for the WestConnex loan and re-measurement of the Norfolk Island Runway loan.
The protection of the sea levy payment is subject to annual advice on contributions required to International Oil Pollution Compensation Funds.
Other taxes are over budget by $2.7 million or 7% mainly due a land tax equivalent payment received from MICL.
Revenue from the sale of goods and services is over budget by $3.0 million mainly due to increased sales of sand at Jandakot WA and increased revenue for services provided in the Indian Ocean Territories.
No payments were made through the Building Australia Fund Special Account during 2017. Estimated receipts in the original budget were subsequently incorporated into the Infrastructure Investment Program.
Industry contributions are under budget by $0.9 million or 42% due to less costs recovered for Airport Environment Officers than budgeted.
Revenue from fees and fines are under budget by $8.5 million or 4% mainly due to less Interstate Road Transport fees and Marine Navigation levies collected than budgeted.
Dividend revenue is under budget by $15 million or 15% due to a lower dividend than budgeted received from the Australian Rail Track Corporation and no dividends received from Airservices Australia.
Other revenue is under budget by $9.8 million due to the deferral of land acquisitions associated with the proposed Melbourne Airport expansion into 2017–18. The budgeted revenue includes amounts payable by the operators of Melbourne Airport to meet the costs incurred by the Commonwealth associated with the acquisitions.
Other gains are over budget due to the recognition of assets acquired for nominal consideration and a reduction in the impairment allowance for the Norfolk Island Runway Loan corresponding to the re-measurement of the loan.
Administered Schedule of Assets and Liabilities
Cash and cash equivalents reflect a drawdown of funds on 30 June 2017 to meet payments on the following business day and the reclassification of special account balances held in the Official Public Account from receivables to cash equivalents.
Investments are under budget by $224 million or 4% mainly due to a budgeted equity payment for the Oakajee Port Common User Facility through the Building Australia Fund which did not occur.
Non-financial assets are over budget by $403 million or 64% mainly due to the revaluation of land at Badgerys Creek (revalued at 30 June 2016 and 30 June 2017) and buildings and infrastructure on Christmas Island (revalued at 30 June 2016). The variance also includes grant prepayments of $11 million which were not budgeted.
Payables are over budget by $15 million or 43% due to the timing of end of year accruals.
Provisions are over budget by $0.4 million or 6% mainly due to the timing of expenses associated with the rehabilitation of land on Christmas Island affected by phosphate mining.