2. Income and Expenses Administered on Behalf of Government

This section analyses the activities that the Department does not control but administers on behalf of the Government. Unless otherwise noted, the accounting policies adopted are consistent with those applied for departmental reporting.

2.1 Administered—Expenses

2.1A: Employee benefits
Wages and salaries 10,498 10,631
Defined contribution plans 1,456 1,321
Defined benefit plans 87 149
Leave and other entitlements 845 1,580
Other employee expenses 1,062 1,080
Total employee benefits 13,948 14,761
2.1B: Suppliers
Goods and services supplied or rendered    
Service fees 31,213 23,767
Services delivery arrangements 67,487 42,074
Fuel and oil 11,259 11,388
Rail and road research 10,374 7,990
Medical supplies 4,360 4,149
Property and operating costs 7,036 12,671
Repairs and maintenance 5,642 5,550
Professional services 498 9,132
Travel and accommodation 467 518
Information, communication and technology 1,407 1,727
General expense 2,997 2,739
Apprentice costs 348 296
Other 149 124
Total goods and services supplied or rendered 143,237 122,125
Goods supplied 11,259 11,388
Services rendered 131,978 110,737
Total goods and services supplied or rendered 143,237 122,125
Other suppliers    
Minimum lease payments 175 294
Workers compensation expenses 94 68
Total other suppliers 269 362
Total suppliers 143,506 122,487

Minimum lease payments relate to short-term residential and storage leases. There were no material commitments for these leases at 30 June 2017 (2016: Nil).

2.1C: Subsidies
Subsidies in connection with    
Tasmanian Freight Equalisation Scheme 137,612 129,835
Bass Strait Passenger Vehicle Equalisation Scheme 47,769 44,081
Other subsidies 20,867 21,782
Total subsidies 206,248 195,698
2.1D: Grants
Public sector    
Australian Government entities (related parties) 407,725 387,398
State and Territory Governments 47,357 53,040
Local Governments 4,337,717 2,230,985
Private sector    
Not-for-profit organisations 141,521 53,582
Commercial entities 68,172 64,942
Overseas 2,472 2,293
Total grants 5,004,964 2,792,240
2.1E: Write-down and impairment of assets
Impairment on financial assets 78 1,054
Investment in Administration of Norfolk Island1 63,053 -
Write-down of property, plant and equipment 280 680
Write-down of land and buildings 466 -
Write-down of finance leases2 361,461 -
Total write-down and impairment of assets 425,338 1,734
  1. The Administration of Norfolk Island (the Administration) was abolished on 1 July 2016. The functions of the Administration were either assumed by the Australian Government or transitioned to the Norfolk Island Regional Council which operates under the NSW Local Government framework. The write-down of the investment excludes a component that was reclassified to the Norfolk Island Heath and Residential Aged Care Service (see Note 4.1D).
  2. On 24 January 2017, land and associated assets at Moorebank NSW were leased to a subsidiary of the Moorebank Intermodal Company Ltd for 99 years. The lease has been classified as a finance lease. As the minimum lease payments are negligible, the lease is considered to have no reportable value and the carrying value of land and associated assets have been written down to nil. Land adjacent to Melbourne airport has also been written down following its incorporation into the airport lease (see Note 4.2A).
2.1F: Payments to corporate Commonwealth entities
Australian Maritime Safety Authority 65,716 58,650
Civil Aviation Safety Authority 41,892 42,461
National Transport Commission 3,358 3,301
Infrastructure Australia 11,581 11,768
Total payments to corporate Commonwealth entities 122,547 116,180

Accounting Policy

Grants and Subsidies

The Department administers a number of grant and subsidy schemes on behalf of the Government. Grant and subsidy liabilities are recognised to the extent that (i) the services required to be performed by the grantee have been performed or (ii) the grant eligibility criteria have been satisfied, but payments due have not been made. When the Government enters into an agreement to make these grants and services but services have not been performed or criteria satisfied, this is considered a commitment.

Payments to corporate Commonwealth entities

Payments to corporate Commonwealth entities from amounts appropriated for that purpose are classified as administered expenses, equity injections or loans of the relevant portfolio department. The appropriation to the Department is disclosed under the Funding section—Appropriations (Note—5.1A).

Payments from the Building Australia Fund

Payments from the Building Australia fund (BAF) are reported as revenue and as grants expense. Payments are made through the Building Australia Fund Infrastructure Portfolio Special Account (Note 5.2A).

2.2 Administered—Income

Taxation Revenue    
2.2A: Other taxes    
Levies 1,607 2,006
Tax equivalents 40,085 37,348
Total other taxes 41,692 39,354
Non-Taxation Revenue    
2.2B: Sale of goods and rendering of services    
Sale of goods 1,329 2,274
Rendering of services 19,164 18,826
Total sale of goods and rendering of services 20,493 21,100
2.2C: Fees and fines    
Other fees from regulatory services 202,938 204,607
Fines 1,256 955
Total fees and fines 204,194 205,562
2.2D: Interest    
Loans 40,582 30,243
Unwinding of discount—concessional loans 5,580 3,531
Other 18 82
Total interest 46,180 33,856
2.2E: Other revenue    
Refund of previous years payments 170 373
Insurance recoveries 557 691
Other 717 892
Rental income 3,002 4,722
Phosphate mine royalty 1,380 2,246
Total other revenue 5,826 8,924
2.2F: Other gains    
Recognition of assets at fair value—Norfolk Island museum collections - 8,245
Recognition of assets at fair value—Melbourne Airport land 5,185 -
Reversal of impairment of financial asset 6,361 -
Recognition of other assets at fair value 227 2,697
Reversal of provision for asbestos removal - 171
Revaluation increment—artworks - 76
Total other gains 11,773 11,189

Accounting Policy


All administered revenues are revenues relating to ordinary activities performed by the Department on behalf of the Australian Government. As such, administered appropriations are not revenues of the Department that oversees distribution or expenditure of the funds as directed.

The main sources of administered revenue are:

  1. land tax equivalency payments for commercial use of Commonwealth owned land;
  2. provision of goods and services and other fees and charges in the Indian Ocean Territories, Jervis Bay Territory and Norfolk Island;
  3. Airport Building Controller fees;
  4. Coastal Trading License fees;
  5. Marine Navigation levies;
  6. Protection of the Sea levies;
  7. Interstate Road Transport fees;
  8. motor vehicle and trailer identification plate fees;
  9. interest revenue on loans;
  10. dividend revenue from Australian government owned entities; and
  11. royalties and conservation levies associated with phosphate mining on Christmas Island.


Interest revenue is recognised using the effective interest method.

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