Annual Report 2015 16 Online

Annual Report
201516
Services
68 websites
live on govCMS
www www
www www
www
Finance
For further
information,
transformation
see pages 28 and 38
Streamlined
financial
statements
1,300 staff
under one roof
For further
information,
see page 46
45% reduction
For further
information,
see page 74
Annual Report
201516
Commonwealth of Australia 2016
ISSN: 2203-8558 (print)
ISSN: 2203-8566 (online)
With the exception of the Commonwealth Coat of Arms, all material presented in this document is provided
under a Creative Commons Attribution 3.0 Australia (www.creativecommons.org/licenses/by/3.0/au) licence.
To the extent that copyright subsists in a third party, permission will be required from the third party to
reuse the material.
The document must be attributed as the Department of Finance Annual Report 201516.
Material used as supplied
Provided you have not modified or transformed the material in any way (including, for example, by changing the
text, calculating percentage changes, graphing or charting data, or deriving new statistics from published
statistics), Finance prefers the following attribution:
Source: The Australian Government Department of Finance
Use of the Coat of Arms
The terms under which the Coat of Arms can be used are set out on the Its an Honour website
(www.dpmc.gov.au/government/its-honour).
Accessing this report online
Further information about Finance and an online version of this report are available on the Finance website
(www.finance.gov.au).
For the annual report, follow the links publications and reportscorporate documents
annual reports201516.
Feedback, enquiries and other uses
Finance welcomes comments on this report. If you have feedback and enquiries about any aspect
of the report or any questions about the licence or any other use of this document, please contact Carolyn
Driessen, Assistant Secretary, Parliamentary and Coordination Branch, on (02) 6215 2222.
Acknowledgements
Coordinators: Vanessa Boyley, Graeme Page and Tim Burchfield
Design and typesetting: Belinda Seaman
Editing and indexing: Wilton Hanford Hanover
Printing: CanPrint Communications
Special thanks go to staff involved in contributing, coordinating and clearing material.
Letter of transmittal
vi
About this report

This is the Secretarys report to the Minister for Finance for the financial year ended
30 June 2016. The report has been prepared according to parliamentary reporting
requirements and legislative requirements.
The report is a mechanism of accountability to the Parliament of Australia in relation to
services provided. It also provides information for the community and stakeholders.
Finance is committed to maintaining accountability and transparency in its activities and
continually improving its reporting.
Guide to this report

Part 1 contains the Secretarys review of the year, including the highlights and challenges, and
the priorities for the year ahead. It also provides overviews of the portfolio and the department,
including its purposes, role, functions, ministers, executive, organisational structure, and
outcome and program framework.
Part 2 comprises a review of the departments performance and achievements during
the reporting year and the departments annual performance statements. The annual
performance statements reflect the actual results achieved against the performance
criteria set out in the departments Corporate Plan 201516 and Portfolio Budget Statements
201516.
Part 3 details the departments management and accountability processes, including
corporate governance, external scrutiny, human resources management, environmental
performance and financial management.
Part 4 contains the departments audited financial statements for 201516.
The appendices provide additional information on specific areas of the department, some as
required under legislation.
At the end of the report are a list of abbreviations and acronyms, a glossary, a checklist
detailing the location of the requirements used to compile the report, and an index.
vii
Contents
Letter of transmittal.............................................................................................................. v
About this report................................................................................................................... vi
Part 1: Overview...................................................................................................................... 1
Secretarys review...............................................................................................................................................................2
Portfolio overview................................................................................................................................................................5
Our department.....................................................................................................................................................................7
Part 2: Performance............................................................................................................13
Summary of performance and highlights..........................................................................................................14
Annual performance statements............................................................................................................................29
Part 3: Management and accountability.................................................................... 45
Corporate governance..................................................................................................................................................47
External scrutiny................................................................................................................................................................53
Our people.............................................................................................................................................................................57
Environmental performance......................................................................................................................................62
Financial management...................................................................................................................................................66
Part 4: Financial statements............................................................................................ 73
Appendices.......................................................................................................................... 157
A: Relationship between our purposes and our outcomes..................................................................158
B: Workforce statistics................................................................................................................................................159
C: Work health and safety......................................................................................................................................... 161
D: Advertising and market research...................................................................................................................163
E: Entity resources and expenses by outcomes.........................................................................................164
F: Correction of material errors in the 201415 annual report........................................................... 172
Abbreviations and acronyms........................................................................................ 173
Glossary................................................................................................................................ 174
List of requirements......................................................................................................... 178
Index.......................................................................................................................................183
1
Part 1: Overview
Secretarys review
Portfolio overview
Our department
2
Secretarys review
Welcome to the Department of Finance annual report 201516a report that marks the end
of the first full year of the enhanced Commonwealth performance framework and includes,
for the first time, annual performance statements, providing information on our performance
against our Corporate Plan 201516 and Portfolio Budget Statements 201516.
The departments aspiration to lead the public sector in delivering excellence and value in
the business of government is reflected in our many and varied achievements over the
past 12 months.
These achievements all took place during a year of great change within the department. We
made significant progress on our internal transformation program, which reflects the broader
transformation across the public service. While continuing to deliver value for money for the
people of Australia, we started working in a new operating model. A more flexible and mobile
workforce means we can match our staff with our priorities and streamline the way we work.
We used this model to direct temporary staff and resources into supporting areas with peak
workloads such as priority work in Ministerial and Parliamentary Services during the election
campaign and Budget and Financial Reporting for the 201617 Budget.
Part of this change included moving more than 1,300 staff into a new building and on to a new
technology platform. Being together in one building, rather than five, enables our people to
collaborate more easily. Improved technology and work practices help increase our flexibility.
Our achievements
The department played a central role in supporting the government to deliver its fiscal targets
and policy objectives.
We also successfully delivered the 201617 Budget and the Pre-election Economic and Fiscal
Outlook with our colleagues in the Treasury.
We have fostered improved public sector practice in a diverse range of areas. This work often
involved close partnerships with other entities, and included the enhanced Commonwealth
3
performance framework; Senate electoral reform; a revised guideline for machinery of

government changes; an investment mandate for the Medical Research Future Fund; and the
conclusion of the Trans-Pacific Partnership free trade agreement negotiations.
The department focused on ways to improve public sector operations and reform the way
public assets are managed and operated. We support broader public sector transformation
through initiatives such as the National Property Efficiency Program, scoping studies into
ownership options for government businesses and assets, the contestability program, the
shared and common services program and implementation of a number of recommendations
from the independent review of whole-of-government internal regulation.
Managing efficient, cost-effective services to, and for, government, the department is
delivering across a number of areas including govCMS, the parliamentary injury compensation
scheme, refurbishment of the child dispute area at the Commonwealth Law Courts building
in Sydney, the Cox Peninsula remediation project, and construction of the new post-entry
quarantine facility at Mickleham, Victoria.
Over the past 12 months, the department also showed public sector leadership in providing
advice on major reforms, including the youth employment package, the national innovation
and science agenda, and investment in infrastructure and defence capability.
Our priorities for the year ahead

In 201617, the department will continue to support the government to deliver its fiscal policy
objectives through the budget and financial advice, management and reporting, as required
by the Charter of Budget Honesty Act 1998 and the Public Governance, Performance and
Accountability Act 2013.
The department is also committed to continuing to support public sector transformation, both
by being an example itself and through targeted investment to assist the Australian Public
Service to become more collaborative, innovative and agile.
We will continue to champion the smaller and more efficient government agenda, by
continuing to review and reform a number of government business enterprises, and other
similar government activities.
We will continue to rationalise the Australian Governments non-defence domestic property
holdings and improve the efficiency of property management in support of the governments
agenda to modernise approaches to provide and manage publicly funded services and assets
more efficiently.
Finally, we will deliver on these priorities as we continue the transformation of our own
business model, tools and systems to maximise efficiency and to ensure we can effectively
support the governments policy agenda.
4
Our financial performance

The department remains in a sound financial position, operating within its appropriation.
For 201516, the department reported an overall operating surplus of $113.5 million. This
result is largely due to favourable external factors affecting property valuations and lower
insurance claims for the department.
For 201516, the department has streamlined its financial statements to provide simpler,
more meaningful information and reduced unnecessary disclosures that do not add value
to the readability of the statements. Finance aims to be an exemplar of this approach and is
encouraging and assisting other public sector entities to review disclosures in their financial
statements. The Australian National Audit Office supports this approach and undertook a
similar review for its 201415 financial statements.
Our people
We would not be able to achieve any of our goals without our people. Our most valuable asset,
and our true strength, are the staff who make these achievements happen. They provide a
range of professional services and strategic advice every day, while reflecting our valuesto
be impartial, committed to service, accountable, respectful and ethical.
The department is a positive and healthy organisation where staff enjoy their work and feel
valued. This was reflected in our 2016 APS employee census results: Finances departmental
culture and employee engagement markers were above 80 per cent.
Our staff are supported by our enterprise agreement, a range of cultural networks, our
Diversity Plan and Reconciliation Action Plan, an online learning management system and our
new performance and capability framework.
Our staff also continued to show how important their community is, raising more than $6,000
for our flagship charity, Communities@Work. I am always impressed by and proud of the
commitment, generosity and community spirit we show in the department.
In 201617, we look forward to our continuing relationship with the Minister for Finance,
Senator the Hon Mathias Cormann, and to working with the Special Minister of State, Senator
the Hon Scott Ryan, in what promises to be a busy and fruitful year.
Jane Halton
Secretary
5
Portfolio overview
This section provides an overview of the Finance portfolio and summarises changes that
occurred in 201516.
Portfolio ministers
The ministers and assistant ministers responsible for the Finance portfolio and its agencies
during 201516 were:
Senator the Hon Mathias Cormann, Minister for Finance (from 18 September 2013) and
Special Minister of State (from 18 February 2016)
the Hon Dr Peter Hendy MP, Assistant Minister for Finance (from 18 February 2016)
the Hon Mal Brough MP, Special Minister of State (21 September 2015 to 18 February 2016)
(stood aside on 29 December 2015)
Senator the Hon Michael Ronaldson, Special Minister of State (until 21 September 2015)
the Hon Michael McCormack MP, Parliamentary Secretary to the Minister for Finance
(until 21 September 2015).
Changes to the portfolio

As a result of the Administrative Arrangements Order issued on 21 September 2015,
responsibility for public data policy, including Gov 2.0 and related matters, was transferred
from Finance to the Department of the Prime Minister and Cabinet and the Digital
Transformation Office.
Legislation to effect the merger of ComSuper into the Commonwealth Superannuation
Corporation received royal assent on 17 June 2015. The merger was completed on
1 July 2015, when the Commonwealth Superannuation Corporation became solely
responsible for all superannuation functions and assumed ComSupers functions.
The Australian River Co. Limited was wound up on 15 July 2015.
6
Portfolio structure
The portfolio structure as at 30 June 2016 is shown below.
Department of Finance
Secretary: Jane Halton AO, PSM
www.finance.gov.au
Department
of state As one of the governments central agencies, Finance assists the
government to shape and deliver its agenda by providing high-quality
advice, policies, governance arrangements and professional services.
Australian Electoral Commission

Electoral Commissioner: Tom Rogers
Non- www.aec.gov.au
corporate
Commonwealth The Australian Electoral Commission provides the Australian people with
entities an independent electoral service that meets their needs, encourages
them to understand and participate in the electoral process, and
supports free and fair electoral processes throughout the world.
Future Fund Management Agency

Chair: The Hon Peter Costello AC
www.futurefund.gov.au
The Future Fund Management Agency make provision for the
Commonwealths unfunded superannuation liabilities, payments for
the creation and development of infrastructure, and payments from the
DisabilityCare Australia Fund by managing the investment activities
of the Future Fund, Nation-building Funds and DisabilityCare Australia
Fund, in line with the governments investment mandates.
Commonwealth Superannuation Corporation

Chair: Patricia Cross
Corporate www.csc.gov.au
Commonwealth The Commonwealth Superannuation Corporation is responsible for
entity the management of funds and administration of five government
superannuation schemes. The Commonwealth Superannuation
Corporation also administers six unfunded superannuation schemes.
ASC Pty Ltd

Chair: Bruce Carter
www.asc.com.au
Commonwealth
company ASC exists to serve the frontline of Australias naval defence capabilities.
7
Our department
This section provides an overview of the department at 30 June 2016 and introduces the
executive team that oversees the work of the departments business areas.
Our aspiration and purposes

The Department of Finance advises the Australian Government on the most efficient
mechanisms for delivering its policy priorities, while ensuring the sustainability of public
expenditure programs and best practice financial management. Finances aspiration
statement is set out in the departments Corporate Plan 201516:
Leading the public sector in delivering excellence

and value in the business of government.
In support of this aspiration, Finance has four purposes:
budget and financial advice, management and reportingsupport the government to
deliver its fiscal targets and policy objectives
governancefoster leading public sector practice
transformationinnovate and improve public sector operations and reform the
management and operations of public assets
servicesmanage efficient, cost-effective services to, and for, the government.
Our role and functions

Finance supports the delivery of the Australian Government budget, the ongoing management
of the governments non-defence domestic property portfolio, and key asset sales. Finance
is also responsible for the resource management framework for Commonwealth entities
and companies. In addition, Finance provides advice and support to parliamentarians, their
employees and former parliamentarians, maintains shareholder oversight of government
business enterprises, provides general insurance services to government agencies, promotes
improved risk management and advises on the governments investment funds.
Finance also provides strategic advice, guidance and services relating to property
management, ICT management, and the Commonwealths insurance and superannuation
arrangements.
Our outcomes and programs

Finances three outcomes, outlined in the Portfolio Budget Statements 201516, provide
a strategic statement about our core role and functions. Figure 1 shows our outcome and
program structure at 30 June 2016.
8
Figure 1: Outcomes and programs at 30 June 2016

Outcomes
Support sustainable Australian Government finances through

1 providing high quality policy advice and operational support to the
government and Commonwealth entities to maintain effective and
efficient use of public resources.
Program
1.1 Budget and financial management
Support an efficient and high-performing public sector through providing

2 leadership to Commonwealth entities in ongoing improvements to public
sector governance, including through systems, frameworks, policy, advice
and service delivery.
Programs
Public sector
2.1 2.5 Procurement services
governance
Transforming
2.2 government 2.6 Public sector superannuation
Property and Australian Government

2.3 2.7
construction investment funds
2.4 Insurance and

risk management
Support for Parliamentarians and others as required by the Australian

3 Government through the delivery of, and advice on, entitlements and
targeted assistance.
Program
3.1 Ministerial and parliamentary services
Our executive and business groups

The departments executive is made up of the Secretary and four Deputy Secretaries who
each have responsibility for one of the departments four business areas. The departments
organisational structure at 30 June 2016 is shown in Figure 2 on page 12.
9
Secretary
Jane Halton AO, PSM
Jane Halton was appointed Secretary of the held numerous international appointments
Department of Finance in July 2014. She is with the World Health Organization, the World
responsible for all functions and services Health Assembly and the OECD.
delivered by the department. She was
Jane holds the position of Adjunct Professor
previously Secretary of the Department of
at the University of Sydney and Adjunct
Health (20022014).
Professor at the University of Canberra. She
Jane is co-chair of the OECD Asian Senior holds a Bachelor of Arts (Hons) in Psychology
Budget Officials, a member of the executive from the Australian National University and a
board of the Institute for Health Metrics and Doctorate of Letters (honoris causa) from the
Evaluation at the University of Washington University of New South Wales.
and on the advisory board of the Centre
Jane was awarded a Public Service Medal
for Applied Philosophy and Public Ethics
in 2002, a Centenary Medal in 2003 and an
(an Australian Research Council Special
Order of Australia in 2015.
Research Centre). She is also a Public Policy
Fellow at the Australian National Universitys
Crawford School of Public Policy and has
10
Budget and Financial Reporting

Budget and Financial Reporting provides
Deputy policy and financial advice on government
Secretary, expenditure and non-taxation revenue matters
to the Minister for Finance, senior ministers
Rosemary and the Expenditure Review Committee of
Huxtable PSM Cabinet.
The federal budget embodies the policy
Rosemary Huxtable was appointed Deputy priorities and fiscal targets for which
Secretary of Budget and Financial Reporting the government seeks parliamentary
in June 2013. In this role, she is responsible authorisation. Budget and Financial Reporting
for providing advice and managing processes supports the government in its preparation,
associated with the expenditure and non- delivery and ongoing management of
taxation revenue areas of the budget, including the budget and assists agencies to meet
advising the Expenditure Review Committee of their financial management and reporting
Cabinet and preparing annual budget papers obligations. Budget and Financial Reporting
and regular economic updates. Prior to joining aims to ensure that the analysis, policy
Finance, Rosemary spent 10 years in senior advice and costing information provided
executive roles in the Department of Health, to government support informed decision-
including three years as a Deputy Secretary, making and that economic updates are
with responsibilities in the areas of ageing and delivered within required timeframes and meet
aged care, mental health, e-health, Medicare legislative requirements.
and the Pharmaceutical Benefits Scheme. She
has worked extensively in social policy across
the public and private sectors.
In 2005 Rosemary received a Public Service
Medal for her work on Medicare.
Business Enabling Services

Business Enabling Services works with the
Deputy Secretary, the Executive Board and other
Secretary, business groups within the department to
enhance, promote and sustain Finances
David role as a trusted and professional adviser
Fredericks to the government. Business Enabling
Services provides corporate services and
David Fredericks was appointed Deputy information, technology and workplace
Secretary of Business Enabling Services support, and is implementing Finances
in November 2015. Prior to moving to internal transformation program, including
Finance, David was Deputy Secretary and the establishment of a People and Projects
Chief Operating Officer of the Attorney- Office to build project management capability
Generals Department, responsible for across Finance. The area also provides a
corporate strategy, operations and ICT for range of services and support to current
the department, as well as administration of parliamentarians and their staff and to former
royal commissions and the Defence Abuse senators and members.
Response Taskforce. Before that, he was the
departments Deputy Secretary, Civil Justice
and Legal Services.
11
Commercial and Government

Services
Commercial and Government Services
Deputy provides advice on the Australian
Governments business enterprises and
Secretary, commercial entities, manages the non-
John Edge defence domestic property portfolio, and
undertakes scoping studies and strategic
John Edge was appointed Deputy Secretary reviews to assess the optimal ownership
of Commercial and Government Services and management options for a number of
in November 2015. John has extensive government businesses and assets. It is
experience in leading major asset sales, also responsible for the delivery of whole-
including the Medibank Private initial public of-government ICT services, develops and
offering, and other commercial projects for maintains the Australian Governments
government in the Department of Finance procurement policy framework (including
and the former Department of Resources, initiating and managing a range of whole-
Energy and Tourism. Other roles for which of-government contracts), and manages
John has been responsible include budget the Australian Governments special claims,
preparation and advice in the social welfare insurance and risk management operations.
sector, parliamentary entitlements advice
and management of corporate services.
Governance and APS

Transformation
Deputy Governance and APS Transformation
Secretary, develops policy and advises on the resource
management and governance frameworks
Dr Stein for public sector agencies, accounting
Helgeby policy issues, the governments investment
funds, and superannuation arrangements for
Stein Helgeby was appointed Deputy members of parliament and Commonwealth
Secretary of Governance and APS employees. The area also advises on and
Transformation in October 2015. Stein joined coordinates government information and
the department in February 2010 as the advertising campaigns.
Deputy Secretary of the former Financial
In addition, the area consolidates budget
Management Group. Prior to that, Stein
updates, contributes to the preparation
enjoyed a lengthy period in the Victorian
of the budget statements and prepares
Department of Treasury and Finance,
the Commonwealths monthly and annual
where he was responsible for budget and
consolidated financial statements. It also
financial management, long-term policy
provides policy and program leadership
research, taxation, business tax reform and
on initiatives aimed at transforming and
intergovernmental relations.
modernising the public sector, including
shared and common services for back-office
functions and grants administration.
12
Figure 2: Organisational structure at 30 June 2016
Secretary
Jane Halton AO, PSM
Budget and Business Commercial Governance

Financial Reporting Enabling Services and Government and APS
Rosemary David Fredericks Services Transformation
Huxtable PSM John Edge Stein Helgeby
Budget Policy Corporate Commercial and Efficiency,

and Coordination Robin Renwick Claims (Risk) Assurance
Teena Blewitt Andrew Jaggers and Digital
Finance Government
Government and Transformation Property and Richard Bartlett
Defence Program Construction
Cath Patterson Linda Powell Stacie Hall Financial Analysis,
Reporting and
Industry, Information, Technology and Management
Education and Technology and Procurement Alan Greenslade
Infrastructure Workplace John Sheridan
Mark Thomann Michael Hirschfeld Governance
and Public
Social Policy Ministerial and Management
Nicholas Hunt Parliamentary Nathan Smyth
Services
CBMS-R Leonie McGregor Accountability
Taskforce Projects
John Sheridan People and Stephen Clively
Projects Office
Robin Renwick GPMR Taskforce
Lembit Suur
13
Part 2: Performance
Summary of performance and highlights

Annual performance statements
14
Summary of performance and

highlights
In accordance with the enhanced Commonwealth performance framework introduced
in 201516, Finances performance reporting is structured around the four purposes set
out in the departments Corporate Plan 201516 (see Our aspiration and purposes on
page 7). In previous years, performance reporting centred on our outcomes and programs.
The relationship between our purposes and our outcomes and programs is shown in
Appendix A.
The performance framework also requires that the annual report include annual performance
statements. The annual performance statements on pages 29 to 44 reflect the actual results
achieved against the performance criteria set out in our corporate plan and portfolio budget
statements for the reporting period.
Priorities
Our key priorities for 201516 were:
supporting the government to deliver its fiscal policy objectives through the budget and
financial advice, management and reporting, as required by the Charter of Budget Honesty
Act 1998 and the Public Governance, Performance and Accountability Act 2013 (see
Delivering the 201617 Budget and economic updates on page 15)
supporting the smaller government agenda and ensuring public sector operations are cost-
effective, including rationalising surplus office leases and expanding the reform of back-
office systems and coordinated procurement arrangements for ICT products and services
(see Shared and common services program on page 22 and Revised ICT benchmarking
framework on page 23)
supporting the governments agenda to modernise approaches for the efficient delivery and
management of publicly funded services and assets, including:
delivering key projects such as completing the negotiation on the long-term
arrangements for the Air Warfare Destroyer Program and the strategic review of ASC Pty
Ltds mandate, corporate and capital structure and governance (see Reform of the Air
Warfare Destroyer Program on page 21 and Review of ASCs mandate, corporate and
capital structure and governance on page 22)
undertaking reviews and scoping studies to assess optimal arrangements for
delivery and ownership options for identified assets, such as the Intra-Government
Communications Network and the Australian Rail Track Corporation Ltd (see Intra-
Government Communications Network scoping study and Australian Rail Track
Corporation scoping study on page 22).
In 201516, Finance achieved a longstanding operational objective by co-locating most
Canberra-based staff (previously accommodated across several separate tenancies) into one
building. The new building creates the opportunity for our people to collaborate more easily
across the organisation, and improved technology and work practices will make operations
more agile and better connected and help organise people more flexibly in response to work
priorities (see Finance transformation program on page 46).
15
Budget and financial advice, management

and reportingsupport the government to
deliver its fiscal targets and policy objectives
(relates to Outcome 1)
Activities
As manager of the budget process and rules, assist the government to develop and meet its
fiscal targets, policy objectives and legislative obligations.
Maintain the governments financial reporting framework to enhance public sector
management and accountability.
Summary of our performance

Finance performed well in 201516 by progressing the purposes activities. The department
accomplished five of the six performance criteria identified in the Portfolio Budget Statements
201516 and Corporate Plan 201516. One criterion was assessed as partially achieved. Our
performance has also been demonstrated by realising all the intended results in the corporate
plan and deliverables in the portfolio budget statements.
More information on our results against the performance criteria for the budget purpose is
available in the annual performance statements (pages 2931) and in the highlights below.
Highlights
Delivering the 201617 Budget and economic updates
Finances core role is to provide advice and analysis to support the government to develop
and deliver its fiscal and economic policies. Finance works closely with the Treasury to
manage the budget process, communicate the policy decisions and fiscal targets, and ensure
that the budget takes into account government decisions and other material impacts on the
budget, consistent with our obligations under the Charter of Budget Honesty Act.
During the development of the 201617 Budget, Finance:
provided advice on spending and savings proposals, and prepared over 100 briefs for the
Expenditure Review Committee of Cabinet to assist its policy deliberations to achieve the
governments objectives
scrutinised cost estimates for new spending and savings proposals. Finance verified
approximately 740 policy costings for accuracy and overall alignment with the policys intent
and collaborated with portfolio agencies to validate 9,060 estimates adjustments entered in
the Central Budget Management System
coordinated key aspects of the budget process and administered the budget process
operational rules
16
prepared budget documentation, including:

Statement 5 of Budget Paper No. 1, which details how the government intends to allocate
$450.6 billion of expenditure in 201617
Statement 8 of Budget Paper No. 1, in relation to fiscal risks, assets and liabilities,
contingent assets and liabilities, and Australian Government loans that may influence the
actual budget outcome
Statement 9 of Budget Paper No. 1, which provides the Australian Government budget
financial statements
220 new expense, capital and non-tax revenue measures included in Budget Paper No. 2
Budget Paper No. 4, which contains information on 201617 resourcing for Australian
Government agencies.
For the 201516 Mid-Year Economic and Fiscal Outlook, Finance analysed and advised on
164 expense, capital and non-tax revenue measures, and prepared a range of documentation,
including information on the Australian Government budget financial statements and an
update to fiscal risks and contingent liabilities and assets since the 201516 Budget.
In preparing for the 2016 federal election, Finance worked with the Treasury on the Pre-
election Economic and Fiscal Outlook. In accordance with the Charter of Budget Honesty
Act, the Secretary to the Treasury and the Secretary of the Department of Finance publicly
released the Pre-election Economic and Fiscal Outlook on 20 May 2016.
Over the caretaker period, up until the day of the election, Finance costed 50 election
commitments. These costings were made available to the public on a dedicated website,
www.electioncostings.gov.au.
Delivering the governments fiscal and budget strategies

In the 201617 Budget, the government reiterated its commitment to the medium-term fiscal
strategy of achieving budget surpluses, on average, over the course of the economic cycle,
and its aim to deliver budget surpluses building to at least 1 per cent of GDP as soon as
possible.
To support this goal, Finance, in collaboration with the Treasury, the Department of the Prime
Minister and Cabinet and other agencies, developed proposals across a number of portfolios
aimed at improving productivity in the economy and workforce participation. Finance provided
advice on major reforms, including the youth employment package and investment in
infrastructure and defence capability.
Finance supported the government in delivering on its budget repair strategy by advising on
the progress of budget-related legislation through the parliament.
Structural savings
Finance, in collaboration with the Treasury and the Department of the Prime Minister and
Cabinet, developed savings proposals for consideration by the government designed to
support the long-term sustainability of the budget. Finance advised the Expenditure Review
Committee on structural savings proposals to help ensure savings were responsible and
sustainable and could contribute to the ongoing costs of key expense measures.
17
Youth employment package

Finance, in collaboration with central agencies and the departments of Employment, Social
Services, Education and Training and Human Services as part of the Youth Employment
Taskforce, advised the government on the design of, and policy and financial matters for, the
youth employment package announced in the 201617 Budget.
The package included the establishment of the Youth Jobs PaTH (Prepare, Trial, Hire) program.
The government will invest $751.7 million over four years in Youth Jobs PaTH, which aims
to improve youth employment outcomes by increasing young peoples employability and
providing up to 30,000 young people each year with real work experience. The package also
included measures to promote youth innovation and assist young people to start their own
businesses.
Surging to deliver the 201617 Budget

Reflecting Finances new way We really appreciated the surge
of operating, a surge readiness response team offering their
management model was services to help better manage
developed building short-term the workload across the group
teams to surge towards work during this peak periodit made
priorities as they arise. In a real difference. It was also an
201516 this included assisting opportunity for us to see some
with the peak of activity different ideas from different
associated with the 201617 areas of the department and have
Budget. a fresh look at the process.
Over 40 staff undertook targeted The surge response team also
budget training, and 15 staff found the experience to be
mobilised in February 2016 to beneficial.
work in Budget and Financial
It was a good opportunity to
Reporting as part of the budget
develop my skills and learn
surge response team. Their work
something new that could
included costing new policy
benefit me in any role across
proposals, preparing green briefs,
the department. I also met new
drafting measure descriptions
people and established some
and processing adjustments in
networks. I would definitely
the Central Budget Management
recommend it.
System. A second surge team
of five staff was activated in a This was a great example of staff
rapid response to a request for mobility in action with successful
assistance to quality-assure and outcomes for all involved. The
proofread the budget supply department will continue to refine
bills. the implementation of the surge
readiness management model to
Staff in Budget and
build on our capacity to flexibly
Financial Reporting
deploy staff and resources
found the
to deliver the governments
contribution of the
priorities.
surge response
team to be
extremely valuable.
18
Governancefoster leading public sector practice

Activities
As steward of the governments public sector governance, performance and accountability
framework and key assets:
contribute to, and foster, leading practice in public sector resource management,
governance and accountability, encompassing:
the public governance, performance and accountability framework and related
oversight frameworks, incorporating procurement, grants, charging and risk
frameworks
the Commonwealth land, public works and property management frameworks
government advertising policies
oversee the governments investment funds, including the Future Fund, and the stability
of the governments unfunded superannuation liabilities
provide performance assessments and strategic advice to support shareholder
oversight of the performance of corporate Commonwealth entities and Commonwealth
companies.
Provide support and advice to the government on Australian electoral matters.

accomplished 16 of the 17 performance criteria identified in the Portfolio Budget Statements
201516 and Corporate Plan 201516. One criterion was assessed as partially achieved. Our
performance has also been demonstrated by realising all the intended results in the corporate
plan and deliverables in the portfolio budget statements.
More information on our results against the performance criteria for the governance purpose
is available in the annual performance statements (pages 326) and in the highlights below.
Highlights
Trans-Pacific Partnership negotiations
Finance provided technical support to the Department of Foreign Affairs and Trade in relation
to the government procurement chapter.
Investment mandate for the Medical Research Future Fund

Following passage of the Medical Research Future Fund Act 2015 in August 2015, Finance
worked with technical and legal advisers, and with the Treasury, on an appropriate investment
mandate for the fund. The Medical Research Future Fund Investment Mandate Direction
2015 took effect in November 2015 and is an important tool in shaping the outcomes the
government aims to achieve from the fund (returns, preservation of the capital over the long
term and an acceptable level of risk).
19
Clean Energy Innovation Fund

Finance worked with the Department of the Environment to develop the operational
parameters for the $1 billion Clean Energy Innovation Fund, to be jointly managed by the
Clean Energy Finance Corporation and the Australian Renewable Energy Agency. The two
departments worked with technical advisers to draft provisions that set a target rate of return
and described the risk level for the fund. The fund was established through provisions in the
Clean Energy Finance Corporation Investment Mandate Direction 2016, issued by the Minister
for Finance and the Minister for the Environment in May 2016.
Reform of Senate voting practices

Led by Finance, multiple entities developed the most significant electoral reform in 30 years,
through amendments to the Commonwealth Electoral Act 1918. The amendments changed
voting practices so that voters choices are directly responsible for the election of Senators.
The changes provided increased flexibility and opportunity for voters to express their
preferences for Senate candidates.
Amendments to the Commonwealth Electoral Act for Norfolk Island

residents
Finance worked with the Department of Infrastructure and Regional Development to develop
policy and legislative reforms that made enrolling to vote in federal elections compulsory
and provided for the representation of Norfolk Island electors in a single electorate in the
Australian Capital Territory.
Revised guideline for machinery of government changes

The Australian Public Service Commission and Finance revised the guideline to make it more
strategic by focusing on a set of key principles for implementing machinery of government
changes. The revised guideline has a more user-friendly web-based format and incorporates
new practices to improve the implementation of machinery of government changes. It also
includes links to checklists and to other resources that provide more detailed information.
Administration of the Central Advertising System

Finance administers the Central Advertising System, which consolidates the governments
buying power to support the proper use of public resources. A total of $218.3 million was
spent on media through the system in 201516:
Total campaign advertising media expenditure was $198.7 million, comprising $174.7 million
by non-corporate Commonwealth entities and $24.0 million by corporate Commonwealth
entities, Commonwealth companies and other bodies.
Total non-campaign advertising media expenditure was $19.6 million, comprising
$16.8 million by non-corporate Commonwealth entities and $2.8 million by corporate
Commonwealth entities, Commonwealth companies and other bodies.
20
Enhanced Commonwealth performance

framework
In 201516 the department implementation of the new
put the final component of the framework. Throughout 201516
enhanced Commonwealth the department conducted
performance framework in a comprehensive series of
place. The new framework community of practice meetings
aims to improve the quality in Canberra, Melbourne, Sydney,
of planning, performance Adelaide and Brisbane with over
information, evaluation and 2,400 attendees from Australian
reporting in government so that Government entities.
performance information draws
The Joint Committee of Public
clear links between the use of
Accounts and Audit commended
public resources and the results
the departments consultation
achieved.
with affected entities and the
The framework creates a extensive set of quality guidance
clear line of sight between we produced. In a recent
performance planning in performance audit into corporate
corporate plans and performance planning in the Australian public
reporting in annual performance sector, the Australian National
statements. It aims to provide Audit Office found that 84 per
high-level information about cent of entities were satisfied with
the extent to which the departments assistance.
government policy
The department will continue to
objectives are being
provide professional guidance
met.
and assistance as entities refine
Communities and improve their performance
of practice planning and reporting.
were integral to
the successful
21
Transformationinnovate and improve public

sector operations and reform the management
and operations of public assets (relates to
Outcome 2)
Activities
As a public sector leader, stimulate and drive public sector efficiency, excellence and
innovation, and support the government in reforming and improving the governance,
performance and accountability of the public sector and public assets.

Finance displayed a high level of performance in 201516 by accomplishing the purposes
activities. The department achieved all four of the performance criteria identified in the
Portfolio Budget Statements 201516 and Corporate Plan 201516. Our performance has also
been demonstrated by realising all the intended results in the corporate plan and deliverables
in the portfolio budget statements.
More information on our results against the performance criteria for the transformation
purpose is available in the annual performance statements (pages 378) and in the highlights
below.
Highlights
Effective and efficient management and divestment of non-defence
domestic property
Finance continued to manage the $1.4 billion non-defence domestic property portfolio to
meet its intended purposes and comply with relevant legislation. Assets were managed by
promptly addressing issues and scheduling repairs and upgrades to preserve and improve
asset value. Finance continued to work closely with government entities to fulfil their
requirements for functional and fit-for-purpose office accommodation.
Fifty-two property sales were completed under the governments surplus property
divestment program in 201516. The sales returned approximately $9 million in gross
proceeds to consolidated revenue, and achieved savings in property management costs.
Most of these sales involved properties previously held by the former AlburyWodonga
Development Corporation and rural blocks located along the NSWACT border.
Reform of the Air Warfare Destroyer Program

The department worked with the Department of Defence to successfully implement long-
term arrangements for the Air Warfare Destroyer Program to address budget and schedule
overruns and ensure that the program meets Australias defence requirements. These
arrangements have significantly improved the performance of ASC Pty Ltd.
22
Review of ASCs mandate, corporate and capital structure and governance

Finance conducted a strategic review of ASC Pty Ltd, and is updating that review to ensure
that the company is best structured to support the governments long-term plan for a strong
and sustainable naval shipbuilding industry.
Intra-Government Communications Network scoping study

The department managed a scoping study into future ownership options for the Intra-
Government Communications Network (ICON). Following consideration of the outcomes
of the study, the government announced that it would retain ICON because a sale or lease
would not represent value for money. The study found that ICON provides significant value
to the government as a strategic asset that gives agencies low-cost, high-bandwidth secure
telecommunication services.
Competitive tender process to operate the ASIC Registry

Following the governments decision to outsource the operations and upgrading of the
ASIC Registry, the department delivered three of the four phases of the competitive tender
processthe registration of interest phase, the expression of interest phase and the
indicative bid phase. The final bid phase was launched on 29 April 2016.
Defence Housing Australia forensic review

Finance worked with the Department of Defence to finalise a forensic review of the operations
and activities of Defence Housing Australia. Finance supported Defence Housing Australia and
other stakeholders with implementing the reviews recommendations.
Australian Rail Track Corporation scoping study

Finance managed a scoping study into options for the future management, operations and
ownership of the Australian Rail Track Corporation, taking into account the implications of the
Inland Rail project. Having considered the outcomes of the study, the government decided to
keep the company in government ownership to deliver the Inland Rail project in partnership
with the private sector. Finance is leading a market-testing process for private sector
involvement in the project.
Shared and common services program

The shared and common services program is driving standardisation of business processes
across the public sector by consolidating service provision from 94 agencies into a few
designated public sector providers by the end of 201920. Significant progress was made in
201516, including:
establishing six designated providers from which 14 consuming agencies are sourcing
services
matching each consuming agency to a provider
starting an automation pilot with a number of providers
conducting scoping for a pilot of business process outsourcing
conducting the second round of corporate services benchmarking to enable monitoring of
benefits.
23
Revised ICT benchmarking framework

The ICT benchmarking framework is used to monitor whole-of-government trends in ICT
activities and investment. During 201516 the framework was revised in order to reduce
red tape, remove lower value data items and improve the data collection process. Greater
emphasis was placed on improving performance and the return on investment of ICT
management and applications.
Streamlining Grants Administration Program

The Finance-led Streamlining Grants Administration Program will ensure a simpler, more
consistent and more efficient process for administrating government grants. The initiative
includes the establishment of two grants administration hubs, as announced in the 201516
Budget. During 201516, the transition arrangements were established for the program,
including the scope of services to be delivered by the hubs, plans for automating services and
a pathway to transition. Thirteen agencies are in scope for the program. The two hub agencies
are streamlining their grants management processes, with a user experience focus, and the
11 other granting agencies will transition their programs to one of the grants administration
hubs beginning on 1 July 2016. This reform will reduce red tape for grant applicants and
recipients and provide administrative efficiencies for government.
Digital records management

During 201516, Finance led a study to examine the business, technical and financial costs
and benefits of moving to a whole-of-government digital records management system. The
costbenefit analysis showed that a single system was feasible. Finance has established a
program of work concentrating on smarter procurement for records systems, mapping the
future of government records management, and enabling interoperability of information.
Efficiency through Contestability Program

Under the Efficiency through Contestability Program, Finance continued to methodically
examine Commonwealth public sector activities, staffing and agency functions to ensure that
government administration is as efficient, effective and responsive as possible. In 201516,
Finance advised agencies on undertaking functions under the contestability framework
and delivered five functional and efficiency reviews to government. The reviews have led to
administrative and program savings of about $2.7 billion to date and the savings are expected
to continue to build over time.
Independent review of whole-of-government internal regulation

Finance led a cross-entity secretariat to support Ms Barbara Belchers independent review
of the need for, and impact of, regulations imposed on the public service. The reviews report
contains 134 recommendations, with a key focus on streamlining security vetting processes,
removing duplication of reporting, improving accessibility of information, clarifying guidance,
introducing electronic tabling in parliament and improving annual reports. The Secretaries
Committee on Transformation and the Secretaries Board agreed to all recommendations and
work is now underway on implementing them.
24
National Property Efficiency Program

Finances National Property and surplus office space in and
Efficiency Program capitalises around Canberra was filled by
on the Australian Governments government agencies, which will
position as a major purchaser deliver almost $200 million in
of property services in the savings over 10 years.
Australian market.
In February 2016 the department
The program has two key facilitated a joint approach
initiatives: to market for the ACT office
Operation Tetrisabsorbing accommodation needs of the
entities lease requirements, Department of Immigration and
where feasible, into existing Border Protection, the Australian
vacant office accommodation Bureau of Statistics and the
coordinated procurements
Department of Defence. The joint
ensuring leases and other approach leveraged the buying
property services contracts power of the three agencies to
maximise the governments enhance value for money and
substantial purchasing power. achieve significant savings
over the life of the leases,
Operation Tetris focuses on filling estimated at around $324 million
vacant government office over 30 years.
accommodation in the
Australian Capital The department is taking the
Territory. In 201516 benefits from these successes
over 42,000 and is rolling out the program
square metres of nationally.
previously vacant
25
Servicesmanage efficient, cost-effective

services to, and for, the government (relates to
Outcomes 2 and 3)
Activities
As steward of the governments key assets (including sovereign wealth funds and government
non-defence real property) and public sector governance, administer:
government superannuation arrangements
government general insurance and risk management services (Comcover)
government non-defence property services
key whole-of-Australian Government ICT services (including communications networks,
online services and ICT apprentice programs)
government purchasing arrangements for common goods and services.
Administer entitlements and services to ministers, office-holders, senators, members and

their staff.

accomplished 10 of the 12 performance criteria in the Portfolio Budget Statements 201516
and Corporate Plan 201516. One criterion was assessed as partially achieved and one
criterion was assessed as not achieved. Our performance has also been demonstrated by
realising all the intended results in the corporate plan and deliverables in the portfolio budget
statements.
More information on the results against the performance criteria for the services purpose is
available in the annual performance statements (pages 3842) and in the highlights below.
Highlights
Parliamentary injury compensation scheme
The 201516 Budget included funding to establish an injury compensation scheme
for parliamentarians (and the spouse of the Prime Minister), providing coverage from
1 January 2016. The measure is based as far as practicable on the relevant provisions of the
Safety, Rehabilitation and Compensation Act 1988, and is administered by Comcare. The
scheme was implemented through an amending regulation, and the scheme benefits were
determined by the Special Minister of State in a legislative instrument.
Before the schemes establishment, parliamentarians were one of the only professions in
Australia not to be covered for work-related injury.
26
ICT entry-level programs

The Australian Governments ICT entry-level programs continued to build the ICT capability
of the APS workforce. As part of the annual intake in January 2016, 42 ICT apprentices and
54 ICT cadets started programs in 12 government agencies. In February 2016, 39 graduates
commenced employment across 12 agencies. In 201516, Finance increased the use of social
media to market the programs to potential applicants. Facebook was used to advertise and
communicate with applicants through live question and answer sessions and boosted posts.
This increased activity resulted in a higher number of applications compared to previous
years.
Cox Peninsula remediation

Finance is remediating 4,750 hectares of contaminated land at Cox Peninsula that was used
for a variety of maritime, communications and defence purposes for over 70 years.
Work completed to date, totalling approximately $13 million, has included the remediation of
sections 41 and 266. More than 1,200 hectares was handed over to the traditional owners by
the Prime Minister in a formal ceremony held on site on 21 June 2016.
The remainder of the land to be remediated includes sections 261, 262 and 265, comprising
approximately 3,500 hectares, which will be progressively transferred to the traditional owners
under the Kenbi land claim.
Post-entry quarantine facility

Finance is overseeing the construction of a post-entry quarantine facility in Mickleham,
Victoria. Buildings for the quarantine of horses, bees, dogs, cats and plants were
commissioned and progressively completed between February and December 2015 at a cost
of $203 million. This work assists the Department of Agriculture and Water Resources to keep
Australia safe from exotic pests and diseases that could threaten our human, plant and animal
health. The construction of this facility consolidates a number of premises to better meet
Australias future post-entry quarantine needs.
Refurbishment of child dispute area at Sydney law courts

The child dispute area at the Commonwealth Law Courts building in Sydney has been updated
to meet contemporary safety and security standards. This project, completed in May 2016 at
a cost of $2 million, has improved safety and security for members of the public and staff who
use this area. This project was funded through a 201516 Budget measure which provided
$30 million over four years for the refurbishment of Commonwealth Law Courts buildings.
Villawood Immigration Detention Centre refurbishment

The redevelopment in stage 2a has involved remediating the site and replacing ageing
infrastructure and facilities in accordance with the principles in the Standards for Design and
Fit-out of Immigration Detention Facilities, the Standards for Health Services in Australian
Immigration Detention Centres, and the Detention Health Framework. In March 2016 at a
cost of $34 million, two low-risk accommodation precincts were completed that can house
approximately 380 people. The development also incorporated amenities that promote the
health and wellbeing of people in detention, staff and visitors.
27
Extension of the Microsoft Volume Sourcing Agreement

During 201516, Finance executed an amendment to the Microsoft Volume Sourcing
Agreement to extend it for a further three years to 30 June 2019. The agreement provides
entities with significant price discounts, favourable licensing conditions and deployment
flexibility for Microsoft software and services, which includes the ability to move licences
between entities without additional cost.
Delivery of a Protected voice, video and chat service

Finance designed and procured a mobile voice, video and chat application in response to the
need for accredited communications services at a Protected classification. The system was
constructed in a 10-week window following an open market approach. The system is modular
and can be extended to interoperate with other Protected systems using standards-based
protocols.
New government panel for air travel services

During 201516, Finance entered into a new arrangement for air travel. It delivers value
for money through competitive fixed-price fares and other discount arrangements for the
1.4 million sectors that are travelled annually by government travellers. It also meets the needs
of the 140 agencies and 230,000 government travellers that will use the arrangement.
28
govCMS
govCMS is an open source One tool, which enables sites
web content management and to use information from open
hosting service developed to data portals and picture the
help agencies create modern, data on their websites, was
affordable and responsive co-developed by a federal and
websites and to make it easier to a state agency and has been
collaborate and innovate. govCMS shared across the community.
helps reduce the technology Another, which allows the public
and compliance burden on to participate in both formal and
government agencies while informal policy consultation, has
providing a more cost-effective also been shared.
web content management and
The success of govCMS
hosting option.
shows the value in starting
Before govCMS, many agencies with customer requirements.
were locked into expensive, Agencies were engaged early
proprietary softwareall trying and involved in the design of
to solve the same problems, the service and implementation
battling to achieve compliance was based on the most pressing
and keep up with increasingly customer needs.
sophisticated security and
govCMS shows you dont have to
technical requirements.
mandate the servicejust make
Adoption by agencies in the it compelling.
services first full year of operation
has exceeded all expectations,
reflecting the trust established
in govCMS. The Victorian
Department of Premier and
Cabinet used govCMS to
deliver the state budget on
www.budget.vic.gov.au, and one
of the most visited sites in the
federal government,
www.humanservices.gov.au,
also adopted the service.
Agencies using govCMS are part The work in 201516 culminated
of a thriving community that in govCMS being recognised as
is supported to create a positive example of innovation,
functionality once, and winning the Contributing to a Culture
share with others, of Practice of Innovation category at
the Institute of Public Administration
which eliminates Australias 2016 Public Sector
duplication of cost, Innovation Awards.
time and effort.
29
Introductory statement
I, as the accountable authority of the Department of Finance, present the 201516 annual
performance statements of the Department of Finance, as required under section 39(1)(a) of
the Public Governance, Performance and Accountability Act 2013 (PGPA Act). In my opinion,
these annual performance statements are based on properly maintained records, accurately
reflect the performance of the department, and comply with section 39(2) of the PGPA Act.
Jane Halton
Secretary
October 2016
Purpose: Budget and financial advice, management

and reportingsupport the government to deliver
its fiscal targets and policy objectives (relates to
Outcome 1)
Results
Performance criterion
Analysis, policy advice and costing information provided to the Finance Minister and the
Expenditure Review Committee of Cabinet as part of budget and financial reporting processes
are relevant, accurate, evidence-based and timely.
Criterion source Corporate Plan 201516, p. 12
Program 1.1, Portfolio Budget Statements 201516, p. 29
Result against performance criterion Achieved
Finance provided advice to the Finance Minister and Expenditure Review Committee of Cabinet
that was relevant to government considerations, accurate, evidence-based, delivered within
agreed timeframes and consistent with government-agreed processes. Finance prepared and
provided over 100 briefs to support the deliberations of the Expenditure Review Committee of
Cabinet.
30
Advice is objective and based on a thorough understanding of issues from a whole-of-
Australian-Government (WoAG) perspective.
Criterion source Program 1.1, Portfolio Budget Statements 201516, p. 29
Independent advice, from a WoAG perspective, was provided to the Finance Minister
and Expenditure Review Committee of Cabinet based on information gathered through
consultations with entities and other stakeholders. During the development of the 201617
Budget, Finance verified approximately 740 policy costings for accuracy and overall alignment
with the policys intent and validated 9,060 estimates adjustments entered by agencies into the
Central Budget Management System.
Accurate budget estimates measured as follows (after allowing for the effects of policy
decisions, movements in economic parameters and changes in accounting treatments):
2.0 per cent difference between first forward year estimated expenses and final outcome
1.5 per cent difference between budget estimated expenses and final outcome
1.0 per cent difference between revised estimated expenses at Mid-Year Economic and Fiscal
Outlook (MYEFO) and Final Budget Outcome (FBO)
0.5 per cent difference between revised estimated expenses at budget and FBO.
Result against performance criterion Partially achieved
The difference between first forward year estimated expenses and FBO was 1.9 per cent on
an accrual basis and 2.0 per cent on a cash payments basis.
The difference between budget estimated expenses and FBO was 1.5 per cent on an accrual
basis and 1.9 per cent on a cash payments basis.
The difference between revised estimated expenses at MYEFO and FBO was 0.9 per cent on
The difference between revised estimated expenses at budget and FBO was 0.6 per cent on
One element of this criterion was fully achieved and three elements were partially achieved.
Variations between the estimates and final outcome were due to unpredictable delays in the
achievement of project milestones under a range of national partnership agreements and
changes in some program-specific parameters. Program estimates are regularly reviewed
and updated to take account of the best available information to maximise their reliability and
accuracy.
The budget, related updates and the governments financial statements are accurate
(taking into account, to the fullest extent possible, all government decisions and other
circumstances that may have a material effect) and delivered within required timeframes,
and meet the governments legislative obligations.
31

The 201617 Budget was delivered on 3 May 2016.
The 201516 MYEFO was delivered on 15 December 2015.
The 201415 FBO was published on 21 September 2015, within the legislated timeframe and
with audit-cleared financial statements for all material entities. The results were consistent with
the subsequent audited consolidated financial statements.
Since FBO, the monthly financial statements were delivered, on average, to the Finance Minister
within 21 days of each month end.
The consolidated financial statements were provided to the Auditor-General on
30 November 2015, within the legislated timeframe. They were audit-cleared with one
exception for the fair value measurement of specialist military equipment assets. This matter
related to a technical accounting measurement issue. Specialist military equipment assets
were measured at cost, which was consistent with the treatment in prior years. The accuracy
of the budget, related updates and government financial statements was demonstrated by the
previous performance criterion.
The derived underlying cash balance is provided to government within five days of the end of
the financial year.
The 201415 derived underlying cash balance was provided to the government within five days
of the end of the financial year.
The governments cash requirements are met on a daily basis, ensuring the ongoing operations
of government.
The governments cash requirements were met on every day of 201516.
Analysis of budget purpose performance

See the overarching analysis of performance at the end of these annual performance
statements.
32
Purpose: Governancefoster leading public

sector practice (relates to Outcome 2)
Results
Delivery of significant government initiatives improves, with:
90 per cent of senior responsible officials identifying that gateway reviews have contributed
constructively to their project
90 per cent of gateway review report recommendations actioned or being actioned by entities.
100 per cent of senior responsible officials identified through feedback forms that gateway
reviews contributed constructively to their project in 201516.
98 per cent of gateway review recommendations have been, or are being, actioned by entities as
reported in feedback forms.
Timely and relevant advice on grant policy matters.
Stakeholder feedback indicates that grants policy advice, tools and guidance was relevant and
timely. Advice was provided on over 120 grant guidelines and all advice was provided within the
advised timeframes.
Contribute to the achievement of the governments objectives in Papua New Guinea, the Pacific
and East Asia.
Stakeholders and whole-of-government partners, including the Department of Foreign Affairs
and Trade, regional development partners and foreign governments endorsed the effectiveness
of Finances technical assistance activities in the Indo-Pacific region.
Timely and relevant advice on procurement policy matters is provided, with at least 80 per cent
of entity queries to the procurement advice inbox responded to within three days.
33

The department received 547 requests for advice from agencies and responded to
97 per cent of those requests within three days.
AusTender is available 99 per cent of the time during business hours (ACT local time).
AusTender was available 99.97 per cent of the time during business hours in 201516.
Advice to the Finance Minister [relating to government shareholder oversight] is timely, relevant
and of high quality.
The Finance Minister was briefed promptly and comprehensively on shareholder issues related
to government business enterprises as evidenced by the provision of regular and issues-based
briefings during 201516.
Briefings on corporate plans and progress reports [for government commercial entities] to be
provided to the Finance Minister within four weeks of receipt.
Eleven briefings on corporate plans or progress reports were provided to the Finance Minister
within the required timeframe. Nineteen briefings were delayed for various reasons.
Quarterly meetings with government business enterprises.
Meetings were held with the government business enterprises on a quarterly or more frequent
basis.
Advice, analysis and support to the government on public sector superannuation policy and
governance, investment fund policy, and governance matters, is provided in a timely manner, and
is assessed as high quality and robust, supporting the delivery of the governments objectives
and investment mandates.
34

The merger of ComSuper and the Commonwealth Superannuation Corporation took effect on
1 July 2015, representing a significant reform in superannuation governance. Throughout
201516, Finance chaired a deputy secretary-level stakeholder working group to consider and
resolve issues in a timely manner.
Finance provided advice and assistance to the government in relation to the 201617 Budget
measure Offering Choice in Public Sector Superannuation Accumulation Plan. Advice, including
information obtained from consultations with relevant stakeholders, was provided within the
necessary budget timeframes.
Finance provided advice and assistance to the government on establishing the Medical
Research Future Fund (MRFF), issuing an investment mandate for the MRFF and closing
the Health and Hospitals Fund (HHF). The Medical Research Future Fund Act 2015 received royal
assent on 26 August 2015. The Medical Research Future Fund Investment Mandate Direction
2015 was issued on 8 November 2015 and the HHF was closed by proclamation on
29 October 2015.
The Australian Government Office Occupancy Report (to be published in 201516)
demonstrates that Commonwealth entities are working towards best practice in property
management and planning.
The Australian Government Office Occupancy Report 2015 showed that entities are working to
achieve best practice in property management and planning.
An assessment of the findings of the 2015 report against those of previous reports shows
WoAG reductions in the median fit-out density, total office area and total work points.
These results are also relevant to the Portfolio Budget Statements 201516 performance
criterion WoAG property data is collected, analysed and used as the evidence base to inform
government property management policy and entity property decisions.
Sustainable property management practices and tools are promulgated to relevant entities
and assisted in using these tools to achieve more efficient, effective and sustainable property
outcomes on a whole-of-life basis.
Ongoing consultations were undertaken with entities that focused on the implementation
of effective and sustainable property outcomes in support of the Commonwealth Property
Management Framework.
In addition, Finance developed a financial model, checklist and templates that entities may
choose to use when preparing a costbenefit analysis and seeking endorsement of a
particular lease.
35
Costbenefit analysis, an annual WoAG Property Capability Plan, and the two-stage process for
approval of major capital works are systematically applied to better inform government and entity
decisions to own, lease, divest or acquire properties.
Major property expenditure proposed by individual entities was supported by costbenefit
analysis, the two-stage process and other budget processes, including new policy proposals.
Finance assisted entities when requested to undertake reviews of business cases and cost
benefit analyses prior to the entities seeking endorsement of their property lease proposals.
Finance also advised entities on their obligations under the Commonwealth Property
Management Framework. During 201516 Finance provided advice over 200 times on cost
benefit analyses, lease notifications and lease endorsements and decisions to acquire or
dispose of properties, leading to more informed decisions to own, lease, divest or acquire
properties.
The requirement to develop a WoAG Property Capability Plan was discontinued
during 201516.
Advice and support is provided to the government and Commonwealth entities in relation to
the Lands Acquisition Act 1989, the Public Works Committee Act 1969, relevant sections of the
Native Title Act 1993, the National Land Ordinances and the Commonwealth Property Disposals
Policy.
Finance provided advice and guidance on three acquisitions that were commenced or
completed under the Lands Acquisition Act 1989, to support Commonwealth entities.
Finance prepared 17 public works referrals, totalling approximately $2.69 billion. Finance
prepared 24 expediency motions with a combined cost of approximately $3.41 billion for
approved works.
Under the Commonwealth Property Disposals Policy, Finance provided advice to Commonwealth
entities on over 30 disposal-related matters and assisted with obtaining approval for four
disposal matters.
Major capital works projects and major land contamination remediation projects are completed
in close consultation with clients and within the time, cost and quality parameters agreed by the
government for the project.
36

The major capital works and remediation projects are proceeding within the projects time,
cost and quality parameters agreed by the Australian Government, including with respect to
the post-entry quarantine facility at Mickleham (Vic.) and remediation activities such as the Cox
Peninsula (NT) and Malabar Headland (NSW) works. Finance undertook close consultations with
the relevant client agencies, traditional owners, state, territory and local government officials and
local community stakeholders through regular project governance meetings.
Properties within the governments non-defence domestic property portfolio are strategically
managed to meet their intended purposes and legislative requirements.
Properties were managed to meet their intended purposes and in accordance with all legislative
requirements. Properties were subject to an annual maintenance program and routinely
inspected to maintain compliance. Regular consultation with tenant entities made sure that the
properties met their business needs.
Properties are acquired and divested as appropriate and desired by the government, and residual
issues are managed to protect the governments interests.
Finance continued to progress its surplus non-defence property divestment program, with
65 properties divested since the programs inception in 201415. Properties divested in
201516 included 44 land parcels in AlburyWodonga and seven rural blocks located around
the NSWACT border. Due diligence continued on the remaining properties to inform divestment
strategies and to make sure that post-sale risks are minimised.
Credits to and payments from the [Australian Government investment] funds are timely and
consistent with legislation.
Finance assisted the government in making crediting determinations for the MRFF on 28 August
and 26 November 2015, consistent with the Medical Research Future Fund Act 2015.
Upon its closure, the uncommitted balance of the HHF, of $1,010,000,000, was transferred to
the MRFF by a crediting determination made on 28 August 2015. A further $2,139,351,000 was
credited to the MRFF on 1 December 2015.
Analysis of governance purpose performance

statements.
37
Purpose: Transformationinnovate and

improve public sector operations and reform the
management and operations of public assets
Results
Contestability reviews and functional and efficiency reviews are completed to support decisions
about Commonwealth entities strategically realigning and reprioritising functions to meet the core
objectives of government.
Finance coordinated the Efficiency through Contestability Program during 201516, which
included the completion of 10 functional and efficiency reviews of portfolio departments and
agencies, and the commissioning of eight new functional and efficiency reviews for completion in
201617.
Functional and efficiency review outcomes announced to date have delivered administrative and
program savings of about $2.7 billion. Budget Paper No. 4 201617 records the net savings to
government from completed reviews.
criterion Supporting entities to design and implement initiatives to improve the efficient delivery
of government functions.
Reviews and scoping studies meet the governments targeted outcomes, including for the Air
Warfare Destroyer Program, ASC Pty Ltd and the Australian Rail Track Corporation Ltd.
The reviews and scoping studies related to the Air Warfare Destroyer Program, ASC Pty Ltd and
Australian Rail Track Corporation Ltd were conducted consistent with their respective terms of
reference. The reviews involved consultation with stakeholders and management of a range of
issues to provide advice to inform government decision-making on matters such as the capital
and corporate structures, mandates and governance arrangements of the government business
enterprises.
criterion Delivering to government agreed scoping studies that report on their respective terms
of reference.
38
75 per cent of relevant entities access the internet through their shared internet gateway.
77 per cent of relevant entities accessed the internet through their shared internet gateway.
Usage of the National Telepresence System increases by 10 per cent annually.
Usage of the National Telepresence System increased by 16.8 per cent in 201516 from
201415.
Analysis of transformation purpose performance

statements.
Purpose: Servicesmanage efficient, cost-

effective services to, and for, the government
(relates to Outcomes 2 and 3)
Results
govCMS is providing useful capability for entities.
govCMS is providing useful capability for entities. At 30 June 2016, govCMS had 68 websites live
on the platform (from 37 entities) and a further 18 were in development. This is 40 per cent higher
than the govCMS feasibility study forecast completed by Deloitte Touche Tohmatsu Limited
before the initiative was implemented.
The governments non-defence property portfolio is actively managed, with 80 per cent of
actions required to address extreme or high operational risks being programmed, in progress or
completed within a given quarter, facilitating the more efficient and effective administration of the
Finance-managed property portfolio.
39

All extreme and high risks were addressed or mitigated. Emerging risks were managed as
identified through enhanced stakeholder engagement, which allowed for responsive and efficient
property management. Risks were identified through monthly stakeholder meetings, inspections
and building fault reporting. All extreme and high risks were addressed immediately, while progress
on actions to address risks with lower likelihood or consequence were reported on a monthly
basis to the departments divisional executive.
WoAG coordinated arrangements meet the governments objectives for the relevant reporting
period.
WoAG coordinated arrangements met the governments objectives, with:
the establishment of the Whole-of-Government ICT Hardware and Associated Services Panel in
September 2015
the extension of the Microsoft Volume Sourcing Agreement until June 2019
the commencement of the new Air Travel Services Panel on 1 May 2016 with an initial term of
five years
the management of 19 contracts in accordance with appropriate contract
management plans
the conduct of two tender processes within agreed timeframes and budgets.
These results are also relevant to the Portfolio Budget Statements 201516 performance criterion
WoAG arrangements are well managed. In particular, scoping studies and tender processes are
conducted within agreed timeframes and budgets, and contracts are managed in accordance
with appropriate contract management plans.
ICT capability in participating Commonwealth entities increases, as demonstrated by
70 per cent of students annually accepted for the ICT entry-level programs remaining in
the government after one year, and 50 per cent remaining after two years.
97 per cent of students annually accepted for the government ICT Apprenticeships Program
remain in the government after one year, and 94 per cent remain after two years.
95 per cent of students annually accepted for the government ICT Cadetships Program remain in
the government after one year, and 93 per cent remain after two years.
100 per cent of students annually accepted for the government ICT Graduate Program
remain in the government after one year. This is a one-year program, so no data is available after
12 months.
40
Coordinated procurement arrangements are expanded for ICT products and services, establishing
cost-effective WoAG purchasing arrangements for these items.
All milestones scheduled in 201516 to expand arrangements for ICT coordinated procurement
were completed. Negotiations have commenced with IBM, SAP and Oracle. Agreement on pricing,
terms and conditions will be largely dependent on vendors and this may impact timeframes.
Government advertising is conducted in accordance with government advertising policies.
All advertising campaigns above the value of $250,000 which launched in 201516, and which
were subject to the Guidelines on Information and Advertising Campaigns by non-corporate
Commonwealth entities (February 2015), were reviewed by the Independent Communications
Committee. The committees compliance advice for all relevant campaigns was published on
Finances website.
Completion of 50 per cent of all act of grace and waiver of debt requests within 60 days and
100 per cent compliance with timeframes in the Administrative Decisions (Judicial Review)
Act 1977.
68 per cent of act of grace and waiver of debt requests were completed within 60 days and
there was 100 per cent compliance with the timeframes of the Administrative Decisions (Judicial
Review) Act for act of grace and waiver of debt requests.
No adverse findings from the Commonwealth Ombudsman in respect of special claims.
There were no adverse Commonwealth Ombudsman findings in 201516.
80 per cent of Comcover fund members have achieved their identified level of risk maturity as
measured in the Comcover Benchmarking Program.
41
Result against performance criterion Not achieved

The Commonwealth Risk Management Policy led to a greater focus being placed on the
management of risk across the Commonwealth. However, the Comcover Benchmarking Program
indicated that 80 per cent of fund members had not yet achieved their identified level of risk
maturity.
Achievement of risk maturity is dependent on entities taking time to build capability. Finance
undertook a range of activities to support entities to improve their risk management capability and
to identify the level of risk management maturity that is appropriate for them.
These activities included:
developing guidance material to assist entities to implement the Commonwealth Risk
Management Policy
providing access to high-quality risk advisory services to assist with specific risk-related
projects such as reviews of risk frameworks, risk matrix reviews, development of risk appetite
and tolerance statements, and post-loss reviews
providing a comprehensive risk management education program that assists entities to develop
skills and capabilities in risk management through a mix of workshops, e-learning, seminars,
events and networking opportunities
providing a benchmarking program to assist entities to identify opportunities to improve their
risk management capability.
Members of schemes administered are satisfied with service provision, in particular:
payments are accurate and in accordance with scheme timeframes
superannuation statements are issued in accordance with prescribed timeframes.
Payments for those schemes administered by Finance were accurate and in accordance with
scheme timeframes.
Payments were accurately made to all members of the Judges Pensions Scheme, the Governors-
General Scheme and the Parliamentary Contributory Superannuation Scheme, and payments
under the death and disability arrangements for Federal Circuit Court judges were made within the
prescribed timeframe. There were no payment inquiries or complaints from members during the
reporting period.
99.98 per cent of payment statements were delivered without error and in accordance with
scheme timeframes.
Superannuation statements were issued in accordance with prescribed timeframes.
Annual superannuation statements were accurate and provided to all members of the
Parliamentary Contributory Superannuation Scheme within the prescribed timeframes. There
were no complaints from members during the reporting period.
42
Services to ministers, office-holders, senators, members and their staff meet agreed service
standards.
93 per cent of client contacts are acknowledged within 24 hours and responded to within
agreed timeframes.
95 per cent of payments (including payroll) are made within agreed timeframes.
100 per cent of office establishment and relocation projects are delivered within their approved
budgets.
100 per cent of monthly management reports are distributed by the 15th of each month.
99 per cent of COMCAR reservations are completed without service failure.
95 per cent of client contacts were acknowledged within 24 hours and responded to within
agreed timeframes.
95 per cent of payments (including payroll) were made within agreed timeframes.
100 per cent of office establishment and relocation projects were delivered within their approved
budgets.
100 per cent of monthly management reports were distributed by the 15th of each month.
99.67 per cent of COMCAR reservations were completed without service failure.
The scoping study on the online delivery of parliamentary entitlements is completed to inform
government decision-making.
The scoping study on the online delivery of parliamentary entitlements was superseded by
An Independent Parliamentary Entitlements System: Review released in February 2016. That
review, led by an independent committee, provided options for an independent parliamentary
entitlements system including a principles-based system for the determination, processing
and monitoring of parliamentarians allowable work expenses. In response to the review in
the 201617 Budget under the Scoping Studyintegrated solution for the management
of parliamentary entitlements measure, the government provided $0.5 million in 201516
to undertake a scoping study into the development of an integrated ICT solution for the
management of parliamentary entitlements.
The scoping study to develop options and a possible first-pass business case for an integrated
solution for the management of parliamentary entitlements will commence in July 2016 with a
finalisation date of the end of November 2016.
Analysis of services purpose performance

See the overarching analysis of performance at the end of these annual performance statements.
43
Overarching analysis of performance against

Finances purposes
In August 2015, Finance launched its Corporate Plan 201516, a fundamental pillar of
these annual performance statements. The plan was Finances first under the enhanced
Commonwealth performance framework. Following department-wide consultation, it included
the departments first aspiration statement: Leading the public sector in delivering excellence
and value in the business of government. The definition of Finances aspiration and purposes
gave clarity to the departments organisational focus, drove cultural change, and supported
service delivery to government and the community and better decision-making. Critically, the
corporate plan underpinned Finances performance against its purposes.
In 201516 Finance performed strongly against the performance criteria identified for
each of its four purposes. Finance fully achieved 35 of 39 performance criteria. Three
performance criteria were partially achieved and one was not achieved. The reasons these
three performance criteria were not fully achieved were that their completion was dependent
on other entities actions, the difficulty of accurately estimating expenditure across a diverse
range of government programs or there was a change in timing due to a government policy
decision.
Finances progress against its four purposes in 201516 was achieved in the context of a
complex operating environment influenced by:
global and national issues that drive and impact on government fiscal policy
decision-making
policy frameworks that position the public sector to meet government and community
expectations, including a flexible and efficient public sector that delivers programs and
services efficiently and effectively
a complex legislative and legal environment that affects the design and passage of
legislation, and the delivery of the governments objectives
continuing public sector reform within a constrained fiscal environment.
In 201516 Finances operating environment was also affected by:

the review of parliamentary entitlements that was released in February 2016, which was of
particular relevance to the services purpose
the Independent Review of Whole-of-Government Internal Regulation, which was of
particular relevance to the governance and transformation purposes
the shared and common services process, particularly in regard to ICT services, which was
of particular relevance to the transformation and services purposes
the delivery of the 201617 Budget being brought forward by a week, which was of particular
relevance to the budget purpose.
Despite Finances complex operating environment in 201516, performance against its
intended results was at a high standard, including of note that:
the budget, appropriation and financial reporting frameworks effectively supported
government decision-making
A key role for Finance is the costing of proposals brought forward in the budget process.
This involves looking at cost structures and drivers; implementation timetables,
strategies, risks and dependencies; and alignment with government policy. This results in
better estimates of costs, risks, schedules, resources and benefits.
44
For example, Finance worked closely with the departments of Social Services, Health,
Human Services, the Treasury, and the Prime Minister and Cabinet and the National
Disability Insurance Agency to cost the bilateral agreements with all states and territories,
other than Western Australia, for the transition to the National Disability Insurance
Scheme (NDIS). Finance worked with these agencies to assess and comprehensively
analyse the costs and complex financial interactions between the Commonwealth and
states and territories, and between the NDIS and mainstream services, such as existing
Commonwealth disability programs and aged care.
governance policy frameworks and modern management practices embodied best practice
public sector leadership and supported efficient, effective, ethical and economical public
sector administration
The introduction of annual reporting requirements for all Commonwealth entities and
companies in the Public Governance, Performance and Accountability Rule 2014 in
201516 put in place the final component of the enhanced Commonwealth performance
framework. With this, the Commonwealth has a complete new resource management
framework that gives coherence to its governance, performance and accountability
arrangements. The new framework encapsulates many of the formal elements required
to build better performance with a more efficient, effective, coherent and joined-up
public sector. It has a strong focus on improving the quality of public information about
the delivery of government programs and services. The framework was developed with
input from the parliament, key external stakeholders and Commonwealth entities and
companies.
reviews and scoping studies informed government decision-making on the reform and
improvement of the delivery of services, assets and businesses
Gateway reviews with entities supported project governance and assurance practices
and increased program and project management capability across government.
Gateway reviews provided support to project leaders with escalation protocols to draw
implementation problems to the attention of public service leaders and ministers.
While the Independent Review of Whole-of-Government Internal Regulation identified
limitations to gateway reviews, including that they are strongly focused on the project
management process, the overwhelming feedback from entities was positive. The
reviews provided useful and practical assurance tools to support institutional checks and
balances in the design and implementation of new projects and programs.
ICT investment and implementation across government was efficient and effective
Finance provides a central assurance role at the whole-of-system level. Finances
collection of whole-of-government ICT benchmarking data is published and individual
comparative reports are provided to entities with guidance on how to use the data to
drive investment efficiency and effectiveness.
There was no material change in Finances organisational capacity specific to any individual
purpose in 201516. However, Finances organisational capacity was enhanced by the
departments internal transformation program. Under this program in 201516 Finance:
moved to a new tenancyco-locating the majority of Finance staff
rolled out new technology
established a People and Projects Office.
This new approach supported progress against the purposes by mobilising staff to support
the delivery of priority activities.
45
Part 3: Management and accountability
Corporate governance
External scrutiny
Our people
Environmental performance
Financial management
46
Finance transformation program

The department has been people are working on the right
engaged in a transformation things at the right time, in line with
journey, demonstrating new government priorities.
and innovative approaches to
Moving between projects keeps
working and realising efficiencies.
it freshyou need that new
Under a new operating model, challenge from time to time.
work is being prioritised and People get really attached to
resources are being allocated their work; we need to realise we
to priorities. The department as dont own the work, we need to go
a whole is working more flexibly where the priorities are, one staff
in a contemporary workplace member said.
that facilitates collaboration with
The build, test, refine process
a modern electronic working
has become instrumental to
environment.
the departments adaptive
A People and Projects approach to transformation. The
Office was established on department is developing a series
1 October 2015 to mobilise of case studies to communicate
people, build project the lessons learned with the
management capability and broader public service.
ensure project outcomes are
Reforming the business model
realised.
and modernising tools and
Identifying capabilities provides systems to maximise the value
our staff with the opportunity provided to the government of the
to build their core day ensures the department is an
and professional exemplar across government and
competencies. a great place to work.
The new operating
model allows the
department to
ensure the right
47
The departments corporate functions and staff provide critical support that enables us to
deliver our programs and services. Our corporate areas are focused on providing quality,
timely services and being responsive to the changing policy and operational needs of the
department.
This section discusses our support services and governance structures, which provide a
framework to ensure accountability and the overall effectiveness of the department.
Our key corporate services

Working collaboratively with all business groups, our corporate functions provide specialist
advice, services and expertise across the department in:
business continuity and disaster recovery
communication and media
coordination, reporting and parliamentary support
corporate planning and governance
financial management
fraud prevention and control
human resources and workforce planning
information and communications technology
information management and research
legal services
risk management, audit and compliance
security, workplace safety and accommodation support.
Our governance arrangements

Finances governance structure supports the Secretary to discharge her duties under the
Public Governance, Performance and Accountability Act 2013 (PGPA Act) and the Public
Service Act 1999. The governance structure for the reporting period is shown in Figure 3 and
discussed in more detail below.
48
Figure 3: Finances governance structure in 201516
Secretary
Work Health
Audit Executive
and Safety
Committee Board
Committee
Business People and Policy Recruitment Risk

Investment Culture Advisory and Sub-Committee
Sub-Committee Sub-Committee Sub-Committee Remuneration
Sub-Committee
Executive Board
The Executive Board advises the Secretary on the priorities, directions and strategic
leadership of the department, monitors performance and maintains accountability. The board
discusses and makes decisions on strategic and operational matters and considers new
policies and projects.
The Secretary is the chair and Deputy Secretaries are standing members. The First Assistant
Secretary of the Corporate Services Division, the Chief Information Officer and the Chief
Financial Officer hold ex officio membership.
Executive Board sub-committees

The Executive Board has established the following sub-committees, comprising senior
management, to assist it in discharging its duties and to allow detailed consideration of
complex activities and issues:
Business Investment Sub-Committeeprovides assurance and advice to the Executive
Board on investments in projects to build the departments business capabilities, to ensure
appropriate alignment with, and enablement of, business priorities.
People and Culture Sub-Committeeoversees the development of strategic people
initiatives and policies.
Policy Advisory Sub-Committeefosters a coherent policy framework across Finance, and
advises the Executive Board on the development and implementation of strategic policy
priorities for the department.
49
Recruitment and Remuneration Sub-Committeeconsiders recruitment submissions and

other matters relating to recruitment and remuneration.
Risk Sub-Committeeprovides advice and recommendations to the Executive Board on
the departments risk management capability and framework to ensure that they meet the
departments needs and represent best practice.
Work Health and Safety Committeebrings together staff and management to develop
and review health and safety policies and procedures to ensure a healthy and safe work
environment.
In 201516, a Finance Transformation Steering Committee was established specifically to
oversee Finances significant transformation program.
Audit Committee
The Audit Committee provides independent advice and assurance to the Secretary on the
appropriateness of the departments accountability and control framework, particularly those
aspects concerning the system of risk oversight and management, the system of internal
controls, performance reporting and financial reporting.
In 201516, the committee comprised four external members, including the chair, and two
departmental members. The committee meets at least five times a year and is attended by
representatives from the Australian National Audit Office, the chair of the Risk Sub-Committee,
the Head of Internal Audit, the Chief Financial Officer and the departments internal audit
service providers as observers.
The Audit Committee has established two sub-committees to support it in performing its
functions:
Financial Statements Audit Sub-Committeemaintains an ongoing review of the process
for preparing the departments annual financial statements.
Performance Framework Sub-Committeeassists with reviewing the departments
systems and procedures for managing its performance, focusing on key concepts
of relevance, reliability, comparability, usefulness, structure and proportionality and
compliance with the performance reporting requirements of the PGPA Act.
Review of governance arrangements

In 201516, Finance conducted an internal review of its governance arrangements to ensure
that they are contemporary, are fit for purpose and align with better practice. The review
was completed in April 2016 and found that, in general, the departments governance
arrangements align with better practice, meet legislative requirements, and are similar to
arrangements in relevant private and public sector organisations.
The review recommended changes to support the departments new operating model and
adjustments to the roles of some of the Executive Board sub-committees to better facilitate
staff mobility and recruitment. These recommendations will be implemented in early 201617.
50
Our planning and reporting framework

Our approach to planning and reporting is illustrated in Figure 4. The overall aim is to provide
high-quality information to parliament and the public through an integrated planning and
reporting cycle that has a clear line of sight from the corporate plan and the Portfolio Budget
Statements through to the annual report for each financial year.
Figure 4: Finances approach to planning and reporting
Planning Reporting
Finance Minister, the parliament and the public
Annual
performance
Corporate plan
statements/
annual report
External
Portfolio Senate
Budget Estimates
Statements hearings
Supported by: Group

Performance
business
flexible information
planning
resourcing
working
collaboratively
leveraging
Internal
technology Work unit

Performance
business
managing risk reviews
planning
Individual
Performance
performance
management
agreements
51
How we manage risk

The departments risk management framework is overseen by the Risk Sub-Committee
and aligns with the principles of the PGPA Act, the Commonwealth Risk Management Policy
and the Australian and New Zealand Risk Management Standard ISO31000:2009 Risk
managementprinciples and guidelines.
The framework provides a sound foundation to ensure a consistent approach to the
identification, treatment and monitoring of risks on an ongoing basis. The enterprise risk
management plan is an important element introduced in 201516 to enhance visibility of
key risks and assist with actively managing risks at all levels in the department. Also during
201516, the department worked to clearly define its risk appetite and tolerance levels for
categories of risk in its operations. The risk appetite and tolerance levels will be embedded
in the framework in 201617 to assist the department to make informed decisions about
prioritising activities and allocating resources.
Business continuity management

Business continuity management is integral to the departments risk management
arrangements. It entails careful planning to enable the continuation or timely resumption
of critical functions and eventual restoration to normal operations following a business
interruption.
In the event of a business interruption, a central control team is convened by the Deputy
Secretary of Business Enabling Services. The team serves as the central point of
communications and coordination for the departments response and recovery.
Internal audit arrangements

Primary responsibility for the departments internal audit activities rests with the Head of
Internal Audit. The Head of Internal Audit provides the Secretary, through the Audit Committee,
with independent assurance that internal controls designed to manage organisational risks
and achieve the departments objectives are operating in an efficient, effective and ethical
manner. The Head of Internal Audit also implements the annual internal audit plan and
manages liaison with the Australian National Audit Office.
Internal audits are either commissioned by the Audit Committee under the annual internal
audit plan or initiated by management. A management-initiated review may be conducted in
response to a newly identified risk or other matter on which management requires additional
assurance. The department currently contracts KPMG to provide its internal audit services.
During 201516, the internal audit program was delivered in line with the annual internal audit
plan endorsed by the Audit Committee and approved by the Executive Board.
52
How we prevent fraud

The department has a fraud control framework that aligns with the Commonwealth Fraud
Control Framework. The framework establishes the systems and processes for the
prevention, detection, monitoring, evaluation and reporting of, and response to, fraud within
the department. The department regularly reviews its fraud prevention and control measures,
including its fraud risk assessment and fraud control plan.
Ethical standards
Finance managers work with staff to help ensure that they fully understand their roles and
responsibilities as public servants and continue to do their part in enabling the department to
be an ethical, respectful and barrier-free employer.
Guidelines for ethical decision-making, targeted training, and an ethics hotline, available
through the Australian Public Service Commission, help staff recognise and deal with ethical
issues. Information sessions are provided to individual work areas to cover specific ethical and
conduct matters.
53
External scrutiny
The departments operations are subject to scrutiny from a number of external bodies,
including the Australian National Audit Office, the Commonwealth Ombudsman, the Australian
Information Commissioner, various parliamentary committees and the courts. This section
reports on audits, reviews, inquiries and legal actions relevant to Finance in 201516.
Reports by the Australian National Audit Office

In 201516, the Australian National Audit Office tabled four reports in parliament on audits
involving the department:
Report No. 1, 201516: Procurement initiatives to support outcomes for Indigenous
Australians, tabled 8 July 2015
Report No. 4, 201516: Confidentiality in government contracts: Senate order for
departmental and entity contracts (calendar year 2014), tabled 30 September 2015
Report No. 14, 201516: Approval and administration of Commonwealth funding for the East
West Link Project, tabled 14 December 2015
Report No. 15, 201516: Audits of the financial statements of Australian Government entities
for the period ending 30 June 2015, tabled 17 December 2015
The following performance audit involving the department was also completed during
201516:
Report No. 6, 201617: Corporate planning in the Australian public sector: across entities.
However, due to the timing of the federal election, tabling of the report in parliament was
delayed until 31 August 2016.
Details of the Auditor-Generals reports, including the departments response to any audits it
was directly involved in, can be found on the Australian National Audit Office website
(www.anao.gov.au).
Reports by the Commonwealth Ombudsman

The Commonwealth Ombudsman did not release any reports during 201516 that involved the
department or that had, or may have, a significant impact on the departments operations.
Decisions by the Australian Information

Commissioner
There were no decisions by the Australian Information Commissioner during 201516 that
involved the department or that had, or may have, a significant impact on the departments
operations.
54
Parliamentary committees
Senate Standing Committees on Finance and Public

Administration
The Senate Standing Committees on Finance and Public Administration oversee the Prime
Minister and Cabinet and Finance portfolios. Their work is divided between two committees
the Legislation Committee and the References Committee.
During 201516, Finance appeared before the Legislation Committee at its Senate Estimates
hearings on 20 October 2015, 9 February 2016 and 5 May 2016.
Joint Committee of Public Accounts and Audit

The Joint Committee of Public Accounts and Audit holds Commonwealth entities to account
for their lawfulness and efficiency and the effectiveness with which they use public resources.
During 201516, Finance attended hearings and made submissions to the committee on the
inquiry into the development of the Commonwealth performance framework (submissions
were made in October, November and December 2015 and February 2016 and Finance
attended hearings in September, November and December 2015 and February 2016).
Other committees
Finance attended or provided submissions to the following other committees during 201516.
Joint Standing Committee on Foreign Affairs, Defence and Trade

Inquiry into the operation of Defence Housing Australia (attended March 2016).
Senate Standing Committees on Community Affairs, Legislation

Committee
Inquiry into the Medical Research Future Fund Bill 2015 and Medical Research Future Fund
(Consequential Amendments) Bill 2015 (Finance contributed to a joint submission with the
Department of Health and the Department of the Treasury, July 2015).
Senate Standing Committee on Publications

Finance attended the 4 February 2016 meeting of the committee (at the request of the
committee) to provide information about the status of the Style manual for authors, editors
and printers.
Senate Select Committee on Health

Inquiry into health policy, administration and expenditure (attended July 2015).
55
Senate Select Committee on School Funding Investment

Inquiry into school funding investment (attended April 2016).
Finances submissions and the transcripts of committee hearings are available on the
Parliament of Australia website (www.aph.gov.au).
Substantial legal actions
Commonwealth of Australia v Davis Samuel Pty Ltd & Ors

This matter was first reported in Finances 200102 annual report and has been reported in
every annual report since then. The department continues to pursue the funds defrauded by
Mr David Muir, which he distributed to a number of parties. All criminal proceedings were
completed in 2006.
The civil proceedings, to recover the $8.725 million fraudulently transferred, were commenced
in 1999 in the ACT Supreme Court and were heard over nine weeks in 2008. They were
complex and involved multiple parties. Final written submissions were provided to the court
in March 2009.
On 1 August 2013, Justice Refshauge delivered his decision on liability (Commonwealth of
Australia v Davis Samuel Pty Ltd & Ors (No. 7) [2013] ACTSC 146).
The Commonwealth was successful in its claims against 13 defendants. The $4.3 billion
counterclaim by certain of those defendants against the Commonwealth was dismissed.
On 21 November 2014, Justice Refshauge delivered his decision on final orders in the civil
proceedings. Those orders included judgement against the 13 defendants for amounts
between $121,087.92 and $18.63 million, the transfer of certain property to the Commonwealth,
and costs orders against the 13 defendants.
Two appeals were made against the final orders. One appeal was settled in November 2015.
The remaining appeal was struck out by the ACT Court of Appeal on 30 June 2016 for want of
prosecution. That decision may be subject to a further appeal.
Karen Doane v Peter Slipper v Another

On 4 February 2014, Ms Karen Doane commenced proceedings in the Federal Circuit Court,
listing Peter Slipper, former Member and Speaker of the House of Representatives, and the
Commonwealth as respondents. Ms Doane is a former member of Mr Slippers staff, engaged by
Mr Slipper on behalf of the Commonwealth under the Members of Parliament (Staff) Act 1984.
Ms Doane brought a human rights application alleging unlawful discrimination under the
Australian Human Rights Commission Act 1986 following termination of her complaint to the
Australian Human Rights Commission in respect of the same allegations. Ms Doane alleged that
Mr Slipper engaged in various conduct that amounted to unlawful discrimination contrary to the
Racial Discrimination Act 1975, the Sex Discrimination Act 1984 and the Disability Discrimination
Act 1992. Ms Doane alleged that the Commonwealth was vicariously liable for Mr Slippers
conduct.
This matter was finalised by consent on 15 February 2016.
56
Cunningham & Ors v Commonwealth of Australia & Anor

On 21 July 2015, four former parliamentarians filed a writ of summons in the High Court to test
the constitutional validity of allowing the Remuneration Tribunal to determine the base salary
and office allowances of parliamentarians for the purposes of superannuation. The writ also
sought to test the validity of closing the Life Gold Pass Scheme to new members and reducing
the number of flights for existing members.
The High Court heard the matter on 16 June 2016. The court reserved its decision and will
deliver its judgement at a later date.
Information Publication Scheme

Entities subject to the Freedom of Information Act 1982 are required to publish information
to the public as part of the Information Publication Scheme. This requirement is in Part II
of the Act and has replaced the former requirement to publish a section 8 statement in
an annual report. Each agency must display on its website a plan showing what information
it publishes in accordance with the schemes requirements. Finances plan is available at
www.finance.gov.au/foi/information_publication_scheme.html.
Members of the public can provide comments on Finances information publication plan
through the freedom of information coordinator.
57
Our people
Finance is leading transformation within the APS, and we are committed to improving the
way we work so we can deliver on government priorities and our ongoing business. Building a
highly capable and committed workforce that is agile, flexible and able to work across complex
policy issues is central to meeting this commitment.
Finance recognises that along with challenging and interesting work, a competitive
remuneration framework, recognition of employees capabilities, a supportive capability
development framework, a culture that embraces diversity, and worklife balance are key
to attracting, developing and retaining talented staff. This section describes our people, the
ways we support diversity in our workforce, and our remuneration, reward, performance
management and capability development frameworks.
Employment performance
At 30 June 2016, Finance had 1,812 staff employed on an ongoing, non-ongoing and casual
basis. Table 1 provides a comparative overview of the departments employment performance
in 201415 and 201516. More information about the departments workforce and salary
ranges is provided in Appendix B.
Table 1: Employment performance, 201415 and 201516

Indicator 201415 201516
Total number of staff employed (headcount) 1,804 1,812
Total number of staff employed (headcount,
excluding casuals) 1,460 1,469
Total employee expenditure (including casuals) $161,217,000 $170,358,000
Diversity of the workforce (as identified)excluding casuals
Women (percentage of total workforce) 54.5% 55.4%
People with disability (percentage of total workforce) 2.6% 3.0%
Aboriginal and Torres Strait Islander (percentage of
total workforce) 1.4% 1.6%
Staff with English as a second language (percentage
of total workforce) 9.6% 9.6%
Training and education
Number of staff undertaking supported studies 86 144
58
Workforce diversity
In 201516, the department strengthened its efforts in building awareness of and capability
in cultural and diversity matters. The value of these efforts was confirmed in the 2016 APS
employee census results, which showed an increase in staff identifying as being from a diverse
background and an increase in affirmative response rates for diversity, engagement and
workplace culture.
A key factor in the success of our diversity initiatives is our five cultural and diversity
networksthe Aboriginal and Torres Strait Islander Staff Network; the Diversity Network; the
Finance Womens Network; the Lesbian, Gay, Bisexual, Transgender and Intersex Plus (LGBTI+)
Network; and the Young Leaders Network. These networks are each supported by an SES
sponsor and have the endorsement and backing of all senior leaders, including the Secretary
and the Executive Board Diversity Champion.
The LGBTI+ Network is the newest of the five networks. It was established in August 2015 to
support LGBTI staff and raise awareness of LGBTI issues in the department. At 30 June 2016,
the network had 25 members, including staff who identify as LGBTI and staff who are allies.
One of its early initiatives was helping to change the way personnel records are kept to ensure
confidentiality for employees who have transitioned gender. Individual records now make no
reference to an employees previous gender (e.g. name, salutation, gender) and recognise their
prior service under their new identity. These changes provide transgender employees with
safety and confidence to transfer between agencies.
Other initiatives that supported improved diversity outcomes in 201516 included:
events to raise awareness of equal opportunity and diversity issues, including NAIDOC
Week, International Day of People with Disability, International Womens Day, Harmony Day
and International Day Against Homophobia, Biphobia and Transphobia
collaboration with other government agencies to share best practice information, training
seminars, documents, guidance and approaches on diversity issues
presentations from keynote speakers on mental health and LGBTI matters
cultural and diversity training delivered by the Australian Network on Disability.
The department also continued its memberships in peak diversity bodies such as the
Australian Network on Disability, the Diversity Council Australia and Pride in Diversity.
Disability reporting mechanisms

Since 1994, non-corporate Commonwealth entities have reported on their performance as
policy adviser, purchaser, employer, regulator and provider under the Commonwealth Disability
Strategy. In 200708, reporting on the employer role was transferred to the Australian Public
Service Commissions State of the Service reports and the APS Statistical Bulletin. These
reports are available at www.apsc.gov.au. From 201011, entities have no longer been required
to report on these functions.
The Commonwealth Disability Strategy has been overtaken by the National Disability Strategy
20102020, which sets out a 10-year national policy framework to improve the lives of
people with disability, promote participation and create a more inclusive society. A high-level
two-yearly report will track progress against each of the six outcome areas of the strategy
and present a picture of how people with disability are faring. The first of these reports was
published in 2014, and can be found at www.dss.gov.au.
59
Recruitmententry-level programs
Finance continued to focus on recruiting talented graduates and school leavers into
customised entry-level programs. The department also participated in several whole-of-
government entry-level programs. Entry-level recruitment figures for 201516 are provided in
Table 2.
Table 2: Entry-level programs, 201516

Australian
Public Service Number
classification of officers
Finance programs
Finance Graduate Program APS 3 19
Finance Career Starter Program APS 1 15
Papua New Guinea Graduate Program APS 3 (equivalent) 2
Whole-of-government programs
ICT Australian Government Graduate Program APS 3 2
ICT Australian Government Apprenticeship
Program APS 1 4
ICT Australian Government Cadetship Program APS 2 1
APS Indigenous Graduate Program APS 3 1
APS Indigenous Traineeship Program APS 2 1
Indigenous Australian Government Development
Program APS 3 5
Remuneration and employment conditions

The Finance Enterprise Agreement 20152018 came into effect on 27 January 2016 with
a nominal expiry date of 19 January 2019. The agreement provides non-SES staff with
competitive remuneration and employment conditions.
The departments remuneration offer was a 6 per cent increase over three years (2 per cent
on commencement of the agreement and in each of the following two years). Staff allowances
also increased by 6 per cent over three years.
Employment conditions for SES staff are set out in individual determinations made
under section 24(1) of the Public Service Act. Many of these conditions are aligned with
the departments enterprise agreement. A breakdown of staff under the departments
employment instruments is given in Table 3.
60
Table 3: Staff coverage under employment instruments at 30 June 2016

Number of employees Number of employees Number of employees
covered by the enterprise covered by a section 24(1) with an individual flexibility
agreement determination agreement in place
1,738a 74 17b
a Includes ongoing, non-ongoing and casual staff.
b A
ll employees are covered by either the enterprise agreement or a section 24(1) determination.
Employees covered by the enterprise agreement may also have an individual flexibility agreement in
place.
Performance pay
Finance does not provide performance pay.
Non-salary benefits
The department provides staff with a number of additional benefits that are not included under
the provisions of the Finance Enterprise Agreement 20152018. These benefits are:
annual influenza immunisation a free, confidential employee assistance
a quit-smoking assistance program program for employees and their
a carers/breastfeeding room immediate families
workstation assessments for new starters a serious illness register
early intervention for case management study assistance to eligible employees
a return-to-work program for non- an opportunity to work from home on a
compensable injuries and illnesses case-by-case basis
mentoring programs contributions to relevant professional
in-house capability development programs
memberships
a gymnasium
library services.
Employees can access a range of salary sacrifice benefits, including additional

superannuation, leased motor vehicles, laptop computers, mobile telephones and airline
lounge memberships.
Performance management
All Finance employees participate in the performance management framework, the main
objectives of which are to:
clearly link an individuals work with Finances strategic and operational objectives
provide considered feedback, both informal and formal, to employees on their performance
and achievements at work (formal performance assessments occur in December and June)
identify and support the ongoing learning and development needs of employees
effectively identify and address underperformance.
61
During 201516, the department commenced work on a new performance and capability
framework to support the transformation agenda and encourage regular and meaningful
conversations and feedback. The new framework will be implemented during 201617.
Learning and development
Coaching
Ninety-four staff participated in one-on-one coaching sessions through the Coaching
in Finance Program. The program helps staff to achieve specific development goals and
outcomes that other development opportunities may not meet. Coaching was mainly in the
areas of leadership, career change and development, and career planning.
Formal training and development

In 201516, a total of 138 tailored professional skills development courses were provided
through formal in-house programs. In addition, a range of leadership and management
programs were run to support staff with the transition to the departments new operating
model. These programs centred on three themes: working in the new Finance; leading change;
and managing for optimal performance.
Study assistance
Finance provided 144 staff with financial assistance and study leave to participate in external
study as part of the departments overall commitment to developing employees skills.
Learning management system

In 201516, Finance launched APS LearnHub for all staff. APS LearnHub is a learning
management system that supports Finances 70:20:10 learning strategy, representing learning
on the job, through peers, and through formal training.
The system allows our people to:
book in to face-to-face courses held at Finance, and access online tools to support the
training
complete online training that has been specifically designed for the APS, with content
reviewed by the relevant policy agencies
access world-class learning tools such as Lynda.com (online training and videos including
TED Talks), Skillsoft (IT and business skills certification) and GoodPractice (leadership and
management training and resources)
access collaborative networks.
62
Environmental performance
Departmental activities
This section describes the environmental performance of the department, in accordance with
government policy. Environmental impacts are managed by engineering and administrative
controls. The department uses a range of signage, intranet messages and induction content
to support employees to mitigate environmental impacts.
Table 4 summarises the departments environmental performance in 201516 against the
previous year.
The 201516 readings for office energy use per square metre and potable water consumption
are lower as a result of a temporary increase in square metres occupied. The increase
occurred because the department concurrently occupied both new (One Canberra Avenue)
and old office tenancies while consolidating its accommodation.
Office energy use

The department reduces its consumption of office energy wherever possible, including using
automated light switching and the power management features of ICT equipment. In the
departments primary tenancy, One Canberra Avenue, Finance uses 10 per cent Greenpower,
which is sourced through a cooperative government arrangement. (This arrangement was also
in place at several tenancies in Canberra that were vacated during 201516, including the John
Gorton Building, the Treasury Building and Hume.) Finance expects to realise more energy
savings from the new building than it did under the previous accommodation arrangements.
Transport
Finance employees are authorised to travel only when there is a demonstrated business need
and when alternative communication tools, such as teleconferencing and videoconferencing,
are an ineffective option. The co-location of the majority of Finance staff at One Canberra
Avenue should also reduce the need for inter-office travel.
The Finance vehicle fleet is made up of departmental pool vehicles and executive vehicles.
A subscription to Greenfleet offsets the associated vehicle emissions.
Resource efficiency and waste

Finance provides a number of recycling streams (including co-mingled, cardboard and paper
recycling) in all of its tenancies.
The Finance printing system is designed to purge print jobs that are not completed within a set
timeframe. Print jobs totalling 531,463 pages of paper were automatically purged in 201516.
The printer fleets default settings automatically print in grayscale on both sides of the page
and all spent printer cartridges are recycled.
Depending on site requirements, Finance uses a mix of different types of flow restriction and
water-efficient dual-flush toilets to minimise water use across its tenancies.
63
Non-defence domestic property portfolio

Finance manages a diverse portfolio of some 170 non-defence Commonwealth-owned
properties across Australia, including office buildings, law courts and other special purpose
facilities, heritage assets, vacant land and contaminated sites. Finance manages this portfolio
in accordance with the legislative framework for environment and heritage matters, including
the Environment Protection and Biodiversity Conservation Act 1999.
The portfolio is managed in accordance with the principles of environmentally sustainable
development, and Finance considers potential environmental and heritage impacts when
making decisions about each property, including maintenance, retention and divestment.
To improve the environmental performance of the portfolio and in accordance with relevant
asset management plans, Finance targets energy efficiency works in the buildings it manages.
Finance carries out works to improve environmental performance, including upgrades to
heating, ventilation and air-conditioning systems, building management systems, and lighting
controls in various buildings.
Table 4: Environmental performance summary, 201415 and 201516

Indicator 201415 201516
Office energy use
Total office tenant light and power energy consumption (kWh) 2,161,094 1,870,210
Total office tenant light and power energy consumption (MJ) 7,779,938 6,732,756
Office tenant light and power energy use per full-time equivalent
(MJ/FTE) 5,011 4,391
Office tenant light and power use per square metre (MJ/m ) 2
380 244
Base/central building energy consumption (MJ) 51,510,760 46,045,104
Base/central building energy consumption per square metre
(MJ/m2) 504 450
Greenhouse emissions attributed to office tenant light and power
and base/central building energy use (tonnes CO2-e) 10,675 9,787
Green power purchased (kWh) 924,558 877,347
Non-office energy use
Greenhouse emissions attributed to non-office energy use
(computer centres, other properties and uses) (tonnes CO2-e) 2,536 1,832
Vehicle fleet a, b
Total number of fleet vehicles 41 31

Total fuel purchased (litres) 46,559 34,907
Total distance travelled (kilometres)c 441,980 327,938
Average fuel consumption of fleet vehicles (litres/100 kilometres)c 10.5 10.6
Total direct greenhouse emissions of fleet (tonnes CO2-e) 109 82.4
64
Table 4: Environmental performance summary, 201415 and 201516

continued
Indicator 201415 201516
Greenhouse emissions
Total greenhouse emissions (tonnes CO2-e) 13,320 11,702
Total greenhouse emissions per full-time equivalent
(tonnes CO2-e/FTE) 8.5 7.6
Air travel b
Total number of flights 7,006 4,986

Total distance of flights (kilometres) 6,565,470 4,850,176
Potable water consumption d
Total potable water use (kilolitres) 13,299 16,377

Potable water use per full-time equivalent (kilolitres/FTE) 8.566 10.682
Potable water use per square metre (kilolitres/m2) 0.649 0.593
Resource efficiency and waste
Total office paper purchased by full-time equivalent
(A4 reams/FTE) 9.8 8.5
Percentage of office paper purchased with recycled content 94.5% 86.1%
Office paper recycled (tonnes) 87.3 99.8
Total waste produced (tonnes) 242.1 254.6
Total waste produced per full-time equivalent (kilograms/FTE) 155.9 166.0
Percentage of waste diverted from landfill 51.0% 50.9%
kWh = kilowatt hour; MJ = megajoule; CO2-e = carbon dioxide equivalent.
a Finance vehicle fleet only (excludes the COMCAR fleet).
b The fleet and air travel data are for the period 1 April to 31 March in each year.
c T
he kilometre data includes estimates for vehicles where the data was considered unreliable.
Vehicles with reliable kilometre data were utilised to develop figures for departmental average litres per
100 kilometres, and this average was used for each reporting period to estimate kilometres travelled
for vehicles with unreliable data. This approach was used to adjust the 201415 kilometre data from the
201415 annual report (reported as 414,796 kilometres when the average fuel use was not utilised to
include vehicles with unreliable kilometre data).
d T
he water consumption reported only applies to Finance-occupied office buildings. Tenancy-specific
water metering is not available in shared buildings, resulting in the use of estimates based on pro
rata calculations. Two office tenancies containing approximately 18 per cent of Finances full-time
equivalents could not provide water consumption details. The water data is adjusted on a pro rata basis
to account for the unavailable information.
65
Cross-government activities
Finance contributes to the environmental outcomes of a number of additional areas in line with
government policy and relevant legislation. These activities include managing the COMCAR
vehicle fleet and providing electorate office accommodation for parliamentarians. These
activities are in addition to those listed in Table 4.
COMCAR
In 201516, COMCAR continued to deliver on its strategy of ensuring an environmentally
responsible fleet of vehicles. As at 30 June 2016, COMCAR had 146 LPG and two petrol-
powered sedans in its fleet of 159 vehicles. The LPG vehicles burn fuel more efficiently,
improving fuel consumption and contributing to reductions in CO2 output of up to 15 per cent
per vehicle. All COMCAR petrol-powered vehicles use E10 fuel, where available.
More than 60 per cent of the COMCAR fleet is regularly washed using harvested rainwater,
which helps to minimise potable water use.
66
Financial management
Financial performance
This section provides an overview of Finances financial performance during 201516 for both
departmental and administered activities.
The departments financial statements are presented in Part 4. The Australian National Audit
Office issued an unqualified audit opinion for these statements on 29 August 2016.
Finances financial performance is summarised in Table 5. The departments entity resource
statement and tables showing expenses by outcome are presented in Appendix E.
Departmental activities
Departmental resourcing includes assets, liabilities, revenues and expenses that Finance
controls directly and uses to produce outcomes on behalf of the government.
For 201516, the department recorded an operating surplus of $113.5 million. This is
$72.8 million more than the revised surplus estimate of $40.7 million published in the Portfolio
Budget Statements 201617. The increase was mainly due to higher valuations of investment
properties and lower insurance claims.
The operating surplus of $113.5 million in 201516 compares to an operating surplus of
$56.4 million in 201415. Finance has budgeted for an operating surplus of $18.1 million in
201617.
Operating expenses were $5.8 million higher than in 201415. This was primarily due to
an increased provision for insurance claims and an increase in expenditure on centralised
procurement.
Write-down and impairment of assets decreased by $43.0 million. This was primarily due
to a reduction in the revaluation decrement for buildings and investment properties from
$55.3 million in 201415 to $13.2 million in 201516.
The increase in own-source revenue of $103.0 million was primarily due to increased
centralised procurement resulting from additional support and licensing arrangements and an
increase in insurance premium revenue from Commonwealth entities.
Revenue from government decreased by $124.1 million, primarily because the 201415 figure
contained a number of one-off budget items such as the sale of Medibank Private Limited, and
funding for remediation of land at Cox Peninsula.
67
Table 5: Departmental financial performance

30 June 2016 30 June 2015 Variance
$000 $000 $000
Operating expenses 623,292 617,460 5,832
Write-down and impairment of assets 14,741 57,686 (42,945)
Total expenses 638,033 675,146 (37,113)
Own-source revenue 440,445 337,495 102,950
Gains 43,591 4,607 38,984
Net own-source income 484,036 342,102 141,934
Net cost of services 153,997 333,044 (179,047)
Revenue from government 271,315 395,370 (124,055)
Income tax equivalent (3,843) (5,905) 2,062
Operating surplus (deficit) 113,475 56,421 57,054
Changes in asset revaluation surplus 25,133 16,445 8,688
Total comprehensive income (loss) 138,608 72,866 65,742
Figure 5 outlines the departments departmental financial performance over the past four
years and the budget for 201617.
Figure 5: Departmental financial performance, 201213 to 201617

($ million)
($m)
800
700
600
500
300
200
100

100
200
201213 201314 201415 201516 201617
Actuals Actuals Actuals Actuals Budget
Income Expense Surplus/deficit

68
Administered activities
The financial performance of Finances administered activities for 201516 is summarised in
Table 6. Administered items are assets, liabilities, revenues and expenses that are managed or
overseen by Finance on behalf of the government.
Table 6: Administered financial performance

30 June 2016 30 June 2015 Variance
$000 $000 $000
Expenses administered on behalf of the
government 9,509,540 10,512,964 (1,003,424)
Income administered on behalf of the
government 1,906,567 8,004,016 (6,097,449)
Finance incurred $9.5 billion of expenses on behalf of the government. This was $1.0 billion
less than in 201415 due to a reduction in the distributions to portfolio special accounts
associated with the Australian Government investment funds.
Finance recognised $1.9 billion of income on behalf of the government. This was $6.1 billion
less than in 201415, noting that the 201415 figure contained the proceeds from the sale of
Medibank Private Limited.
Figure 6 outlines the financial performance of the departments administered activities over
the past four years and the budget for 201617.
Figure 6: Financial performance of administered activities, 201213 to

201617 ($ million)
($m)
13,000
12,000
11,000
10,000
9,000
8,000
7,000
6,000
5,000
4,000
3,000
2,000
1,000

201213 201314 201415 201516 201617
Actuals Actuals Actuals Actuals Budget
Income Expense
69
Financial summary
Table 7: Financial summary, 201213 to 201516
Departmental summary of financial 201213 201314 201415 201516
statements $ million $ million $ million $ million
Expenses
Employees 181.74 168.08 161.22 170.36
Suppliers 196.46 222.29 331.70 321.89
Write-down and impairment of assets 1.09 118.92 57.69 14.75
Insurance claims 92.85 108.39 76.46 94.30
Other 35.60 34.89 48.08 36.73
Total expenses 507.74 652.57 675.15 638.03
Own-source income
Rendering of services 111.56 143.02 152.82 230.94
Insurance premiums 82.71 86.26 100.87 125.15
Reinsurance and other recoveries 5.15 6.59 0.00 1.50
Rental income 47.67 48.18 76.48 72.12
Other revenues 13.11 9.66 7.33 10.74
Total own-source revenue 260.20 293.71 337.50 440.45
Gains 41.26 5.97 4.61 43.59
Net cost of services 206.28 352.89 333.04 153.99
Revenue from government 274.45 261.69 395.37 271.32
Income tax equivalent expense 5.54 5.86 5.91 3.84
Net surplus (deficit) 62.63 (97.06) 56.42 113.49
Equitya 1,988.17 2,085.77 2,063.37 2,148.08
Net operating cash flow 13.75 47.89 64.20 69.70
Returns to government 33.82 11.14 111.26 73.92
a In 201415 initially a provision of $18.7 million was raised for the cash return. However, changes in
estimates and assumptions used have resulted in an adjustment to the 201415 figure to reflect the
revised amount of $55.1 million.
70
Table 8: Economic performance summary

201516 result
Indicator $000
Operating statement
Total expenditure 638,033
Total own-source income 484,036
Total net cost of service 153,997
Economic viability
Total assets 2,845,820
Total liabilities 697,740
Significant non-compliance with finance law

The department did not report any significant issues relating to non-compliance with the
finance law to the Finance Minister under section 19(1)(e) of the PGPA Act in 201516.
Asset management
Finance manages the governments non-defence domestic property portfolio of some
170 properties, with a value of approximately $1.6 billion (at 30 June 2016). Finance, with its
private sector partner, manages these assets strategically to ensure that they are efficient and
able to meet the governments needs.
In 201516 new long-term leases were finalised which provide the opportunity to improve the
quality and amenity of the portfolio in line with modern workforce standards. This will result in
improved whole-of-government efficiency through full utilisation of assets.
Performance measures for the management of the domestic property portfolio are included in
the annual performance statements in Part 2 (pages 389).
Grants
Information on grants awarded by Finance during the period 1 July 2015 to 30 June 2016 is
available on our website at www.finance.gov.au/publications/grants.
Procurement
The departments approach to procuring goods and services, including consultancies, is
consistent with, and reflects the principles of, the Commonwealth Procurement Rules. These
rules are applied to activities through the departments accountable authority instructions,
supporting operational guidelines and procurement framework.
71
No contracts of $100,000 or more (inclusive of GST) were let during 201516 that did not
provide for the Auditor-General to have access to the contractors premises.
No contracts in excess of $10,000 (inclusive of GST) or standing offers were exempted by the
Secretary from being published on AusTender on the basis that they would disclose exempt
matters under the Freedom of Information Act 1982.
Information on procurements expected to be undertaken in 201516 is in the departments
annual procurement plan, available from the AusTender website (www.tenders.gov.au).
Initiatives to support small business

The department supports small business participation in the Commonwealth Government
procurement market. Participation statistics for small and medium enterprises and small
enterprises are available on the departments website at www.finance.gov.au/procurement/
statistics-on-commonwealth-purchasing-contracts.
The department recognises the importance of ensuring that small businesses are paid on
time. The results of the survey of Australian Government payments to small business are
available on the Treasurys website (www.treasury.gov.au).
The departments support for small business includes using the Commonwealth contracting
suite for low-risk procurements valued under $200,000.
Consultancies
The department engages consultants when it requires specialist expertise or when
independent research, review or assessment is required. Decisions to engage consultants
during 201516 were made in accordance with the PGPA Act and related regulations, including
the Commonwealth Procurement Rules and relevant internal policies.
During 201516, the department entered into 218 new consultancy contracts involving total
actual expenditure of $12.4 million. In addition, 58 ongoing consultancy contracts were active
during 201516, involving total actual expenditure of $18.5 million.
Annual reports contain information about actual expenditure on contracts for consultancies.
Information on the value of contracts and consultancies is available on the AusTender website
(www.tenders.gov.au).
Table 9: Expenditure on consultancy contracts, 201314 to 201516

201314 201415 201516
$ million $ million $ million
Total actual consultancy expenditure 9.2 33.4 30.9
73
Part 4: Financial statements

74
Streamlining our financial statements

The department produced financial statements from
streamlined financial statements around 150 pages in prior
this year, making them less years to 79 pages in 201516,
technical and more accessible to without losing transparency of
non-accountants. information or detail.
This is in line with guidance by the The Australian National Audit
Australian National Audit Office, Office commended the innovative
Finances whole-of-government approach, which achieved
reporting requirements including efficiencies for the department
the PRIMA forms of financial without affecting the quality of
statements, and Australian information. Departmental staff
Accounting Standards. also appreciate the change to the
way information is collected.
The changes are based on
research and stakeholder By introducing an innovative
consultation on the accounting approach for streamlined
trends adopted by other entities financial statements, the
to build the most efficient and department is leading the way
effective financial statement for the public sector in delivering
template. more modern and future-focused
information.
The streamlined
template has reduced
the length of the
departments
75
76
77
Financial Statements
Department of Finance
Financial Statements for the period ended 30 June 2016
Statement by the Secretary and Chief Financial Officer
In our opinion, the attached financial statements for the year ended 30 June 2016 comply with subsection 42(2) of the
Public Governance, Performance and Accountability Act 2013 (PGPA Act), and are based on properly maintained
financial records as per subsection 41(2) of the PGPA Act.
In our opinion, at the date of this statement, there are reasonable grounds to believe that the Department of Finance will
be able to pay its debts as and when they fall due.
Jane Halton AO PSM Steven Momcilovic

Secretary Chief Financial Officer
Department of Finance Department of Finance
August 2016 August 2016
1
78
Glossary of terms
AAS Australian Accounting Standards IBNCS Internet based network connection
service
AASB Australian Accounting Standards IBNR Claims incurred but not reported
Board
AMT Adjusted Market Transactions IBNER Claims incurred but not enough reported
ARR Asset Revaluation Reserve Investment Administered investment funds managed
funds by the Future Fund Board of Guardians
ASC ASC Pty Ltd JPS Judges Pensions Scheme
ARCo Australian River Co. Limited LGPH Life Gold Pass Holders
AUD Australian dollar LSL Long Service Leave
BAF Building Australia Fund LTCR Long Term Cost Report 2014
BSSA Business Services Special Account MOP(S) Members of Parliament (Staff) Act 1984
Act
CEB Consumed Economic Benefits MPS Ministerial Parliamentary Services
CCEs Commonwealth Corporate Entities MRFF Medical Research Future Fund
CRF Consolidated Revenue Fund MRFFICs Medical Research Future Fund
Investment Companies
CPCSA Coordinated Procurement Contracting NBFs Nation Building Funds
Special Account
CPI Internet Index NET Net Assets
CSC Commonwealth Superannuation OCI Other comprehensive income
Corporation
CSS Commonwealth Superannuation OPA Official Public Account
Scheme
DAS Department of Administrative PBS Portfolio Budget Statements
Services
DCAF DisabilityCare Australia Fund PGPA Act Public Governance, Performance and
Accountability Act 2013
DPS Department of Parliamentary Services PM&C Department of the Prime Minister and
Cabinet
DTO Digital Transformation Office PCSS Parliamentary Contributory
Superannuation Scheme
EIF Education Investment Fund PSS Public Sector Superannuation Scheme
EUR Euro PSSap Public Sector Superannuation
accumulation plan
FCCJDDS Federal Circuit Court Judges Death RBA Reserve Bank of Australia
and Disability Scheme
FFMA Future Fund Management Agency RCN Replacement Cost of New Assets
FRR PGPA (Financial Reporting) Rule SOETM Services for Other Entities and Trust
2015 Moneys Special Account
FVPL Fair value through profit or loss The Board Future Fund Board of Guardians
GBP British pound USD United States dollar
G-GPS Governor-General Pension Scheme VSA Volume sourcing arrangements
GST Goods and Services Tax WACC Weighted average cost of capital
HHF Health and Hospitals Fund WoAG Whole of Australian Government
2
79
TABLE OF CONTENTS
Departmental Primary Statements
Statement of Comprehensive Income 80

4
Statement of Financial Position 81

5
Statement of Changes In Equity 82

6
Cash Flow Statement 83

7
Administered Primary Statements
Administered Schedule of Comprehensive Income 84

8
Administered Schedule of Assets And Liabilities 86

10
Administered Reconciliation Schedule 87

11
Administered Cash Flow Statement 88

12
Notes to the financial statements
A. About This Report 90

14 B. Budgetary Variance Reporting 93
17
C. General Business Disclosures 96

20 D. Operating Financial Resources 123
47 E. Our People 139
63
C1 : Outcome
Outcome reporting
reporting Financial instruments
D1 : Financial instruments E1 :: Employee
E1 Employee expenses
expenses
C2 :: General
C2 General insurance
insuranceactivities
activities D2 :: Managing
D2 Managing financial
financialrisk
risk E2 :: Employee
E2 Employee provisions
provisions
E3 :
C3 : Investment funds D3 : Non-financial assets E3 : Senior management
Senior management
personnel personnel
remuneration
C3 : Investment funds D3 : Non-financial assets remuneration
C4 : Superannuation D4 : Other provisions
C4 : Superannuation D4 : Other provisions
C5 : Restructuring
C5 : Restructuring
F. Funding 142
66 G. Managing Other Uncertainties 151
75 H. Other Information 154
78
H1 : Investments in joint
F1 : Cash
Cash flow
flow reconciliation
reconciliation Commitments
G1 : Commitments ventures
H1 : Investments in joint ventures
H2 : Other policy and
F2
F2 :: Annual appropriations
Annual appropriations G2
G2 :: Contingencies
Contingencies H2 : Other policy and disclosures
disclosures
F3 : Special
Special appropriations
appropriations Subsequent events
G3 : Subsequent events
F4 :: Special
F4 Special accounts
accounts
3
80
Department of Finance Departmental Primary Statements

STATEMENT OF COMPREHENSIVE INCOME
for the period ended 30 June 2016
Actuals Budget
30 June 30 June 30 June
2016 2015 2016
Note ref $'000 $'000 $'000
NET COST OF SERVICES
Expenses
Employee expenses E1 170,358 161,217 173,550
Supplier expenses
Centralised procurement expense H2 B3 174,202 100,198 92,474
Domestic property portfolio expenses B2 27,851 48,829 47,423
Property operating expenses 5,213 3,537 2,019
Reinsurance and other recoveries expense C2.1 - 11,170 -
Insurance claims C2.1 B1 94,295 76,462 130,167
Other goods and services 108,604 174,847 109,805
Minimum lease payments H2 6,034 4,257 3,433
Competitive neutrality property H2 2,252 2,612 2,611
Notional reinsurance expense C2.1 5,000 5,000 5,000
Depreciation and amortisation D3.1 27,408 26,527 32,345
Non-financial asset write downs and revaluations D3.1 B2 13,915 56,707 -
Impairment of financial assets D1.3 826 979 -
Grants - private sector non profit - 34 -
Other expenses 2,075 2,770 1,190
Total expenses 638,033 675,146 600,017
Own-source income
Own-source revenue
Premium revenue C2.1 125,149 100,871 126,990
Reinsurance and other recoveries revenue C2.1 1,504 - -
Centralised procurement revenue H2 B3 176,917 102,541 92,923
Rental income H2 B2 72,119 76,483 84,383
Resources received free of charge H2 2,030 1,585 1,386
Rendering of services 54,019 50,278 45,701
Other interest revenue D1.3 6 - -
Other revenue 8,701 5,737 6,900
Total own-source revenue 440,445 337,495 358,283
Gains
Gains B2 43,591 4,607 3,316
Total gains 43,591 4,607 3,316
Total own-source income 484,036 342,102 361,599
Net cost of services (153,997) (333,044) (238,418)
Revenue from Government 271,315 395,370 257,970

Surplus/(deficit) before income tax on
continuing operations 117,318 62,326 19,552
Income tax expense H2 3,843 5,905 4,417
Surplus/(deficit) after income tax on continuing
operations C1.1 113,475 56,421 15,135
OTHER COMPREHENSIVE INCOME

Items not subject to subsequent reclassification
to net cost of services
Changes in asset revaluation reserves relating to
Land and leasehold improvements D3.1 B2 24,483 16,445 -
Assets held for sale 650 - -
Total other comprehensive income/(loss) 138,608 72,866 15,135
The above statement should be read in conjunction with the accompanying notes 4
81

STATEMENT OF FINANCIAL POSITION
as at 30 June 2016
Actuals Budget
STATEMENT OF FINANCIAL POSITION 30 June 30 June 30 June
as at 30 June 2016 2016 2015 2016
Note ref $'000Actuals $'000 Budget
$'000
Assets 30 June 30 June 30 June
Financial assets 2016 2015 2016
Cash and cash equivalents Note ref
D1.1 $'000
3,321 $'000
3,474 $'000
5,000
Assets
Trade receivables D1.1 B3 69,969 28,478 65,153
Financialrevenue
Accrued assets D1.1 B3 20,344 8,893 4,387
Cash and cash receivable
Appropriations equivalents D1.1 3,321 3,474 5,000
Trade receivables
Balances held in special accounts D1.1
F4.1 B3
B5 69,969
726,332 28,478
714,342 65,153
600,279
Accrued revenue
Other departmental undrawn D1.1
F2.2 B3
B5 20,344
172,670 8,893
127,324 4,387
85,364
Appropriations
Reinsurance receivable
and other recoveries C2.3 6,383 6,181 6,000
Balances
Lease heldassets
incentive in special accounts F4.1
H2 B5
B4 726,332
7,986 714,342
3,701 600,279-
Other departmental
Investments undrawn
in joint ventures F2.2
H1 B5 172,670
4,898 127,324
6,112 85,364
6,215
Reinsurance
Other and
financial other recoveries
assets C2.3 6,383
3,434 6,181
6,216 6,000
8,448
Leasefinancial
Total incentive assets
assets H2 B4 7,986
1,015,337 3,701
904,721 780,846-
Investments in joint ventures H1 4,898 6,112 6,215
Other financial assets
Non-financial assets 3,434 6,216 8,448
Total financial assets
Land D3.1 B2 1,015,337
413,298 904,721
396,320 780,846
336,333
Buildings D3.1 B2 637,686 720,135 756,637
Non-financial
Leasehold assets
improvements D3.1 B4 29,159 2,587 -
Land
Investment properties D3.1
D3.1 B2
B2 413,298
626,437 396,320
580,278 336,333
672,786
Buildings
Plant and equipment D3.1 B2
B4 637,686
28,673 720,135
8,261 756,637
39,787
Leaseholdassets
Intangible improvements D3.1 B4
B7 29,159
71,819 2,587
67,705 105,326-
Investment properties
Prepayments D3.1 B2 626,437
11,274 580,278
8,552 672,786
11,000
Plant and
Assets equipment
held for sale D3.1
D3.2 B4 28,673
12,137 8,261
11,942 39,787-
Intangible
Total assets
non-financial assets D3.1 B7 71,819
1,830,483 67,705
1,795,780 105,326
1,921,869
Prepayments 11,274 8,552 11,000
Assets
Total held for sale
Assets D3.2 12,137
2,845,820 11,942
2,700,501 2,702,715-
Total non-financial assets 1,830,483 1,795,780 1,921,869
Liabilities
Total Assets
Trade creditors and accruals D1.1 B6 2,845,820
53,029 2,700,501
41,211 2,702,715
95,351
Unearned revenue H2 B3 85,945 109,897 69,742
Liabilities
Return of equity - special accounts H2 65,323 56,244 10,359
Trade creditors
Outstanding and accruals
insurance claims D1.1
C2.4 B6
B1 53,029
352,587 41,211
329,005 95,351
336,726
Unearned revenue
Employee provisions H2
E2 B3 85,945
61,549 109,897
58,322 69,742
63,067
Return ofleases
Finance equity - special accounts H2
D1.1 B4 65,323
10,102 56,244- 10,359-
Outstanding
Lease insurance
incentive claims
liabilities C2.4
H2 B1
B4 352,587
40,144 329,005
84 336,726-
Employee
Other provisions
provisions E2
D4 B2 61,549
24,774 58,322
36,638 63,067
11,106
Finance
Other leases
payables D1.1 B4 10,102
4,287 5,732- 3,679-
Lease
Total incentive liabilities
liabilities H2 B4 40,144
697,740 84
637,133 590,030-
Other provisions D4 B2 24,774 36,638 11,106
Other
Net Assetspayables 4,287
2,148,080 5,732
2,063,368 3,679
2,112,685
Total liabilities 697,740 637,133 590,030
Equity
Net Assets equity
Contributed 2,148,080
1,618,297 2,063,368
1,672,193 2,112,685
1,718,557
Retained surplus 352,521 239,046 258,444
Equity
Asset revaluation reserves B2 177,262 152,129 135,684
Contributed
Total Equity equity 1,618,297
2,148,080 1,672,193
2,063,368 1,718,557
2,112,685
Retained surplus 352,521 239,046 258,444
Asset revaluation reserves B2 177,262 152,129 135,684
Total Equity 2,148,080 2,063,368 2,112,685
82

STATEMENT OF CHANGES IN EQUITY
Actuals
Retained Earnings Asset revaluation reserves Contributed equity/capital Total Equity

30 June 30 June 30 June 30 June 30 June 30 June 30 June 30 June
2016 2015 2016 2015 2016 2015 2016 2015
Note ref $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000
Opening balance
Balance carried forward 239,046 182,625 152,129 135,684 1,672,193 1,767,460 2,063,368 2,085,769
Adjusted opening balance 239,046 182,625 152,129 135,684 1,672,193 1,767,460 2,063,368 2,085,769
Comprehensive income
Surplus/(deficit) for the period 113,475 56,421 - - - - 113,475 56,421
Other comprehensive income - - 25,133 16,445 - - 25,133 16,445
Total comprehensive income 113,475 56,421 25,133 16,445 - - 138,608 72,866
Transactions with owners

Distributions to owners
Return of equity - special accounts H2 - - - - (67,662) (111,257) (67,662) (111,257)
Return of equity - other - - - - (6,262) - (6,262) -
Contributions by owners
Departmental capital budget - - - - - 11,050 - 11,050
Equity injection - appropriations F2.1 - - - 157,310 277,529 157,310 277,529
Restructuring C5 - - - - (1,029) 49,006 (1,029) 49,006
Transfer of assets to other agencies D3.1 B2 - - - (136,253) (321,595) (136,253) (321,595)
Total transactions with owners - - - - (53,896) (95,267) (53,896) (95,267)
Transfer between equity components - - - - - - - -
Closing balance 352,521 239,046 177,262 152,129 1,618,297 1,672,193 2,148,080 2,063,368
Budget 30 June 2016 - -
Opening balance 242,715 231,041 135,684 124,382 1,888,616 1,705,214 2,267,015 2,060,637
Total comprehensive income 15,135 22,332 - - - - 15,135 22,332
Total transactions with owners 594 - - - (170,059) 52,627 (169,465) 52,627
Closing balance 258,444 253,373 135,684 124,382 1,718,557 1,757,841 2,112,685 2,135,596
83

CASH FLOW STATEMENT
Actuals Budget
2016 2015 2016
Note ref $'000 $'000 $'000
OPERATING ACTIVITIES
Cash received
Revenue from Government 259,944 403,934 257,970
Insurance premiums 125,149 100,924 126,990
Reinsurance and other recoveries 1,302 26,736 -
Interest and dividends 6 - -
Rent received 72,119 76,483 -
Net special account transferred from OPA B5 16,120 - 37,956
Net GST received 3,415 - -
Other 5,332 5,660 6,900
Total cash received 636,386 819,973 652,551
Cash used
Employees 169,842 156,538 175,388
Suppliers B6 326,138 340,934 269,313
Insurance claims B1 70,713 94,121 130,167
Net special account receipts transferred to OPA - 160,871 -
Net GST paid - 3,306 -
Total cash used 566,693 755,770 574,868
Net cash received/(used) for operating activities F1 69,693 64,203 77,683
INVESTING ACTIVITIES
Cash received
Proceeds from sale of land and buildings 8,257 915 16,719
Proceeds from sale of financial investments 2,393 - -
Proceeds from sale of investment properties - 1,424 -
Cash used
Purchase of plant and equipment 9,423 262 29,441
Purchase of land and buildings B5 84,255 379,823 158,392
Purchase of leasehold improvements B4 1,577 - -
Purchase of intangibles B7 11,901 14,188 32,202
Purchase of investments properties 3,720 13,749 5,396
Total cash used 110,876 408,022 225,431
Net cash received/(used) for investing activities (100,226) (405,683) (208,712)
FINANCING ACTIVITIES
Cash received
Contributed equity B5 95,225 401,026 166,010
Cash used
Return of contributed equity H2 64,845 65,372 34,981
Total cash used 64,845 65,372 34,981
Net cash received/(used) for financing activities 30,380 335,654 131,029
Net increase/(decrease) in cash held (153) (5,826) -
Cash and cash equivalents at the beginning

of the reporting period 3,474 9,300 5,000
Cash and cash equivalents at the end
of the reporting period F1 3,321 3,474 5,000
84
Department of Finance Administered Primary Schedules

ADMINISTERED SCHEDULE OF COMPREHENSIVE INCOME
Actuals Budget
2016 2015 2016
Note ref $'000 $'000 $'000
NET COST OF SERVICES
Expenses
Employee expenses E1 322,425 254,632 225,632
Superannuation expense C4.1 B8 8,715,203 8,640,217 8,186,603
Supplier expenses
Office expenses 38,260 27,396 29,103
Travel expenses 57,317 55,665 57,977
Property operating expenses 42,119 29,129 37,431
COMCAR operating expenses 3,321 3,060 3,093
Other goods and services 32,006 31,293 58,914
Minimum lease payments H2 38,015 36,619 38,777
Investment funds - other expenses C3.1 B9 15,091 11,006 10,950
Distribution to portfolio special accounts C3.1 B9 117,658 1,115,009 204,444
Depreciation and amortisation D3.1 16,198 18,430 20,689
Investment funds - foreign exchange losses C3.1 B9 106,288 286,713 -
Non-financial asset write downs and revaluations D3.1 345 511 106
Impairment of financial assets D1.3 2 5 -
Grants - private sector non profit 2,991 1,694 2,911
Other expenses 2,301 1,585 2,503
Total expenses administered on behalf of
Government 9,509,540 10,512,964 8,879,134
Income
Non- taxation revenue
Interest D1.3 37,254 40,373 15,766
Investment funds - interest on term deposits C3.1 B9 98,946 100,019 365,291
Dividends D1.3 16,100 258,472 17,400
Investment funds - dividends C3.1 6,147 - -
Superannuation contributions C4.1 B8 1,338,231 1,363,910 1,450,224
Resources received free of charge H2 4,302 4,277 4,198
Other revenue 5,428 21,525 8,136
Total revenue 1,522,193 1,792,183 1,865,703
Gains
Gains from sale of financial assets D1.3 - 5,684,712 -
Gains from sale of non-financial assets 36 15 -
Investment funds - gains on financial investments C3.1 B9 383,368 494,096 40,365
Gain on closure of CCEs D1.3 - 32,609 -
Other gains 970 401 -
Total gains 384,374 6,211,833 40,365
Total income administered on behalf of
Government 1,906,567 8,004,016 1,906,068
Net cost of by services C1.1 (7,602,973) (2,508,948) (6,973,066)
Surplus/(deficit) (7,602,973) (2,508,948) (6,973,066)
The above schedule should be read in conjunction with the accompanying notes 8
85

ADMINISTERED SCHEDULE OF COMPREHENSIVE INCOME
Actuals Budget
ADMINISTERED SCHEDULE OF COMPREHENSIVE INCOME 2016 2015 2016
for the period ended 30 June 2016 Note ref $'000 $'000 $'000
OTHER COMPREHENSIVE INCOME Actuals Budget
Items not subject to subsequent reclassification 30 June 30 June 30 June
to net cost of services 2016 2015 2016
Movement in carrying amount of superannuation C4.1Note ref $'000
(30,861,250) $'000
(10,299,994) $'000-
OTHER
Items COMPREHENSIVE
subject to subsequent INCOME
reclassification to
Items
net notofsubject
cost servicesto subsequent reclassification
to net cost
Changes of services
in asset revaluation reserves relating to
Movement in carrying amount of superannuation
Infrastructure C4.1
D3.1 (30,861,250)
3,579 (10,299,994)
8,080 -
Items subjectprovisions
Makegood to subsequent reclassification to 36 - -
net cost of services
Available for sale financial assets D1.3 22,347 (32,052) -
Changes
Total in asset
other revaluation income/(loss)
comprehensive reserves relating to (30,835,288) (10,323,966) -
Infrastructure D3.1 3,579 8,080 -
Makegood
Total provisionsincome/(loss)
comprehensive 36
(38,438,261) (12,832,914)- (6,973,066)-
Available for sale financial assets D1.3 22,347 (32,052) -
Total other comprehensive income/(loss) (30,835,288) (10,323,966) -
Total comprehensive income/(loss) (38,438,261) (12,832,914) (6,973,066)
86

ADMINISTERED SCHEDULE OF ASSETS AND LIABILITIES
as at 30 June 2016
Actuals Budget
Department of Finance 30 June Administered
30 June Primary Schedules
30 June
ADMINISTERED SCHEDULE OF ASSETS AND LIABILITIES
as at 30 June 2016 2016 2015 2016
Note ref $'000 $'000 $'000
Assets Actuals Budget
Financial assets 30 June 30 June 30 June
Cash and cash equivalents D1.1 1,059,534
2016 1,084,959
2015 2016-
Trade receivables D1.1
Note ref 1,390
$'000 1,257
$'000 11,070
$'000
Investment funds - loans and receivables
Assets C3.2 B9 4,259,529 3,774,248 -
State and Territory
Financial assets Government loans D1.1 145,959 151,814 145,960
Accrued
Cash andrevenue
cash equivalents D1.1
D1.1 1,533
1,059,534 1,921
1,084,959 --
Government securities
Trade receivables D1.1
D1.1 1,472
1,390 2,171
1,257 11,070-
Commonwealth
Investment fundscorporate entities
- loans and receivables D1.1
C3.2 B9 400,454
4,259,529 378,108
3,774,248 --
Investment funds - financial
State and Territory Governmentassets at FVPL
loans C3.2
D1.1 B9 12,494,544
145,959 7,626,756
151,814 15,867,945
145,960
Lease incentive
Accrued revenueassets H2
D1.1 21
1,533 359
1,921 --
Other financial
Government assets
securities D1.1 11,304
1,472 54,056
2,171 47,962-
Total financial assets
Commonwealth corporate entities D1.1 18,375,740
400,454 13,075,649
378,108 16,072,937-
Investment funds - financial assets at FVPL C3.2 B9 12,494,544 7,626,756 15,867,945
Non-financial
Lease incentiveassets
assets H2 21 359 -
Leasehold improvements
Other financial assets D3.1 18,460
11,304 23,607
54,056 26,152
47,962
Infrastructure
Total financial assets D3.1 67,374
18,375,740 65,748
13,075,649 64,384
16,072,937
Plant and equipment D3.1 8,255 10,415 -
Intangible assets
Non-financial assets D3.1 1,517 2,032 2,491
Prepayments
Leasehold improvements D3.1 3,556
18,460 3,971
23,607 3,615
26,152
Total non-financial assets
Infrastructure D3.1 99,162
67,374 105,773
65,748 96,642
64,384
Plant and equipment D3.1 8,255 10,415 -
Total Assetsassets
Intangible D3.1 18,474,902
1,517 13,181,422
2,032 16,169,579
2,491
Prepayments 3,556 3,971 3,615
Liabilities
Total non-financial assets 99,162 105,773 96,642
Trade creditors and accruals D1.1 15,585 12,719 11,403
Total Assets funds - financial liabilities
Investment C3.2 B9 18,474,902
21,859 13,181,422
27,286 16,169,579-
Investment funds - derivative liabilities C3.2 B9 26,314 52,283 -
Liabilities
Overnight cash balance payable H2 1,560,747 1,564,472 -
Other
Trade payables
creditors and accruals D1.1 10,498
15,585 16,701
12,719 15,900
11,403
Employee provisions
Investment funds - financial liabilities E2
C3.2 B9 312,502
21,859 248,756
27,286 234,396-
Superannuation
Investment fundsprovisions
- derivative liabilities C4.1
C3.2 B8
B9 189,367,538
26,314 153,878,348
52,283 111,232,398-
Other provisions
Overnight cash balance payable D4
H2 18,173
1,560,747 18,014
1,564,472 15,370-
Total liabilities
Other payables 191,333,216
10,498 155,818,579
16,701 111,509,467
15,900
Employee provisions E2 312,502 248,756 234,396
Net Assets
Superannuation provisions C4.1 B8 (172,858,314)
189,367,538 (142,637,157)
153,878,348 (95,339,888)
111,232,398
Other provisions D4 18,173 18,014 15,370
Total liabilities 191,333,216 155,818,579 111,509,467
Net Assets (172,858,314) (142,637,157) (95,339,888)
87

ADMINISTERED RECONCILIATION SCHEDULE
Actuals
Department of Finance Administered
30 June Primary Schedules
30 June
ADMINISTERED RECONCILIATION SCHEDULE
for the period ended 30 June 2016 2016 2015
Note
ref $'000
Actuals $'000
Opening assets less liabilities (142,637,157)
30 June (124,200,537)
30 June
Net (cost of)/contribution by services (7,602,973)
2016 (2,508,948)
2015
Other comprehensive income/(loss) Note (30,835,288) (10,323,966)
ref $'000 $'000
Reservesassets
Opening transferred to Schedule of Comprehensive Income
less liabilities (142,637,157)- (4,122,667)
(124,200,537)
Transfers
Net (to)/from the Australian
(cost of)/contribution by services Government (7,602,973) (2,508,948)
Appropriation
Other transfers from
comprehensive OPA
income/(loss) (30,835,288) (10,323,966)
Annual appropriations F2.1 296,509 268,887
Administered
Reserves assets to
transferred and liabilities of
Schedule appropriations
Comprehensive Income F2.1 1,149- 482
(4,122,667)
1
Transfers (to)/from the Australian Government F3.1 6,218,020 9,640,742
Transfers totransfers
Appropriation OPA from OPA (3,394,851) (13,145,346)
Transfers
Annual from OPA
appropriations F2.1 894
296,509 268,887-
Equity distribution
Administered assets and liabilities appropriations F2.1 (1,462,997)
1,149 (4,000)
482
Contributions
Special from government
appropriations
1 to the investment funds F4.2
F3.1 6,598,851
6,218,020 2,486,251
9,640,742
OPA WoAG transfers
Transfers to OPA (3,394,851) (13,145,346)
Transfers from
Transfers from OPAother entities H2 610,652,954
894 591,744,813-
Equity distribution entities
Transfers to other H2 (610,693,425)
(1,462,997) (592,472,868)
(4,000)
Closing assetsfrom
Contributions lessgovernment
liabilities to the investment funds F4.2 (172,858,314)
6,598,851 (142,637,157)
2,486,251
1
TheWoAG
OPA difference in the special appropriations above and the total in Note F3.1 is due to the timing differences in
transfers
superannuation
Transfers frompayments made by Finance on behalf of Emerging Cost Entities.
other entities H2 610,652,954 591,744,813
Transfers to other entities H2 (610,693,425) (592,472,868)
Closing assets less liabilities (172,858,314) (142,637,157)
1
The difference in the special appropriations above and the total in Note F3.1 is due to the timing differences in
superannuation payments made by Finance on behalf of Emerging Cost Entities.
88

ADMINISTERED CASH FLOW STATEMENT
Actuals Budget
ADMINISTERED CASH FLOW STATEMENT 2016 2015 2016
OPERATING ACTIVITIES Actuals Budget
Cash received 30 June 30 June 30 June
Rendering of services 19,375
2016 5,127
2015 4,688
2016
Superannuation contributions - employers Note ref 1,377,495
$'000 1,362,792
$'000 1,460,215
$'000
Superannuation
OPERATING funds contributions
ACTIVITIES 1,953,089 2,499,390 1,988,218
Net gains
Cash from sale of financial instruments
received 234,377 287,800 -
Interest andofdividends
Rendering services 153,092
19,375 393,275
5,127 393,010
4,688
Net GST received
Superannuation contributions - employers 1,377,495- 226
1,362,792 1,460,215-
Other
Superannuation funds contributions 6,729
1,953,089 21,567
2,499,390 3,135
1,988,218
Total
Net cashfrom
gains received
sale of financial instruments 3,744,157
234,377 4,570,177
287,800 3,849,266-
Interest and dividends 153,092 393,275 393,010
Cash used
Net GST received - 226 -
Other
Employees 6,729
264,538 21,567
239,391 3,135
225,571
Suppliers
Total cash received 218,715
3,744,157 188,926
4,570,177 235,973
3,849,266
Investment Funds distribution 117,658 1,115,009 204,444
Superannuation
Cash used expense 6,040,352 6,222,444 6,342,589
Net realised exchange losses
Employees 106,288
264,538 224,482
239,391 225,571-
Grants
Suppliers 2,281
218,715 1,694
188,926 711
235,973
Net GST paid
Investment Funds distribution 377
117,658 1,115,009- 204,444-
Other
Superannuation expense 655
6,040,352 1,746
6,222,444 6,342,589-
Total cash used
Net realised exchange losses 6,750,864
106,288 7,993,692
224,482 7,009,288-
Grants 2,281 1,694 711
Net cashpaid
Net GST received/(used) for operating activities F1 (3,006,707)
377 (3,423,515)- (3,160,022)-
Other 655 1,746 -
INVESTING ACTIVITIES
Total cash used 6,750,864 7,993,692 7,009,288
Cash received
Proceeds
Net from sale of plantfor
cash received/(used) andoperating
equipment
activities F1 40
(3,006,707) (3,423,515)- (3,160,022)-
Proceeds from sale of financial investments 15,278,583 17,616,720 9,537,286
Repayments ACTIVITIES
INVESTING of advances and loans 11,300 11,027 12,550
Matured
Cash government securities
received 699 1,250 -
Proceeds from sale of plant
non-financial assets
and equipment 5
40 28- -
Total cashfrom
Proceeds received
sale of financial investments 15,290,627
15,278,583 17,629,025
17,616,720 9,549,836
9,537,286
Repayments of advances and loans 11,300 11,027 12,550
Cash used
Matured government securities 699 1,250 -
Purchase
Proceeds of plant
from and
sale equipment assets
of non-financial 2,556
5 2,038
28 4,311-
Purchase
Total cashofreceived
leasehold improvements 4,221
15,290,627 8,589
17,629,025 11,712
9,549,836
Purchase of infrastructure - 172 -
Purchase
Cash used of intangibles - 40 -
Purchase of financial
plant andinvestments
equipment 20,515,947
2,556 13,418,758
2,038 13,994,622
4,311
Total cashofused
Purchase leasehold improvements 20,522,724
4,221 13,429,597
8,589 14,010,645
11,712
Purchase
Net of infrastructure for investing activities
cash received/(used) (5,232,097)- 172
4,199,428 (4,460,809)-
Purchase of intangibles - 40 -
Purchase of financial investments 20,515,947 13,418,758 13,994,622
Total cash used 20,522,724 13,429,597 14,010,645
Net cash received/(used) for investing activities (5,232,097) 4,199,428 (4,460,809)
89

Actuals Budget
Department of Finance 2016 Administered
2015 Primary Schedules
2016
FINANCING ACTIVITIES Actuals Budget
Cash received 30 June 30 June 30 June
Contributed equity 8,553,089
2016 4,986,123
2015 15,629,703
2016
Total cash received Note ref 8,553,089
$'000 4,986,123
$'000 15,629,703
$'000
FINANCING ACTIVITIES
Cash
Cash used
received
Equity distribution
Contributed equity 1,462,997
8,553,089 4,000
4,986,123 9,321,893
15,629,703
Total cash received
Total cash used 1,462,997
8,553,089 4,000
4,986,123 9,321,893
15,629,703
Net cash received/(used) for financing activities 7,090,092 4,982,123 6,307,810
Cash used
Net increase/(decrease)
Equity distribution in cash held (1,148,712)
1,462,997 5,758,036
4,000 (1,313,021)
9,321,893
Total cash used 1,462,997 4,000 9,321,893
Cashcash
Net and received/(used)
cash equivalents for
at the beginning
financing activities 7,090,092 4,982,123 6,307,810
of the reporting period 1,084,959 1,709,073 -
Net increase/(decrease) in cash held (1,148,712) 5,758,036 (1,313,021)
OPA (WoAG)
Transfers
Cash and to other
cash entities at the beginning
equivalents (610,697,150) (592,472,868) -
Transfers from other
of the reporting periodentities 610,653,848
1,084,959 591,825,825
1,709,073 --
Total cash from/(to) OPA (43,302) (647,043) -
OPA (WoAG)
Finance
Transfersadministered transfers
to other entities (610,697,150) (592,472,868) -
Cash to OPA
Transfers from- appropriations
other entities (3,394,851)
610,653,848 (13,145,346)
591,825,825 (3,504,470)-
Cash
Total from
cashOPA - appropriations
from/(to) OPA 4,561,440
(43,302) 7,410,239
(647,043) 4,817,491-
Total cash from/(to) OPA 1,166,589 (5,735,107) 1,313,021
Finance administered transfers
Cash and
Cash to cash
OPA equivalents at the end
- appropriations (3,394,851) (13,145,346) (3,504,470)
of thefrom
Cash reporting
OPA - period
appropriations F1 1,059,534
4,561,440 1,084,959
7,410,239 4,817,491-
Total cash from/(to) OPA 1,166,589 (5,735,107) 1,313,021
Cash and cash equivalents at the end

of the reporting period F1 1,059,534 1,084,959 -
90
Notes to and forming part of the financial statements A. About This Report
A. About This Report

The Department of Finance (Finance) is an Australian Government controlled not-for-profit entity that works
collaboratively with the Department of Prime Minister and Cabinet (PM&C), the Department of the Treasury and the
Australian Public Service Commission (APSC), setting the legislative, resource management and employment
frameworks within which the Australian public sector operates. Finance also plays a central role in providing policy
advice to support the governments decision making to meet its fiscal and other policy objectives and increasingly, to
provide leadership in public sector reform. It also has a key role in supporting the governments agenda to maximise the
potential of public assets to the benefit of taxpayers.
Finances purposes are:
x Budget and financial advice, management and reporting - support the government to deliver its fiscal
targets and policy objectives (refer Outcome 1: Program 1.1);
x Governance - foster leading public sector practice (refer Outcome 2: Programs 2.1, 2.3, 2.4 and 2.7);
x Transformation - innovate and improve public sector operations and reform the management and operations of
public assets (refer Outcome 2: Program 2.2); and
x Services - manage efficient, cost effective services to, and for, the government (refer Outcome 2: Program 2.1,
2.3, 2.4, 2.5, 2.6, and Outcome 3: Program 3.1).
For further information, refer to Note C1 which includes the financial results and position for each of Finances outcomes.
Finances activities are classified as either Departmental or Administered. Departmental activities involve the use of
assets, liabilities, incomes and expenses controlled or incurred by Finance in its own right.
Administered items are controlled by the government and managed or overseen by Finance on behalf of the government.
These items are distinguished from Departmental items using shading.
In some areas of this financial report, Departmental and Administered items are included in the same section,
this is for presentation purposes only and these balances should not be compared.
The continued existence of Finance in its present form and with its present programs is dependent on government policy
and on continued funding by Parliament.
Basis of preparation
Finance's financial statements are required by section 42 of the PGPA Act. The financial statements are general purpose
financial statements that have been prepared in accordance with the PGPA (Financial Reporting) Rule 2015 (FRR) and
Australian Accounting Standards (AAS) and Interpretations issued by the Australian Accounting Standards Board
(AASB) that apply for the reporting period.
Basis of accounting
The financial statements have been prepared on an accrual basis and are in accordance with the historical cost
convention, except for certain assets and liabilities at fair value.
All assets have been assessed for impairment at the end of the reporting period, and no impairment indicators exist
unless otherwise stated.
All Departmental Statement of Financial Position and Administered Schedule of Assets and Liabilities items are expected
to be settled or recovered within 12 months unless otherwise stated in the notes.
How to read this report
The following pages set out the notes to the financial statements, which include further information required to
understand the financial statements. This has been assessed against materiality and relevance to the operations,
financial position and performance of Finance. All amounts are presented in Australian dollars (AUD) and are in whole
dollars unless otherwise specified.
14
91
Key judgements and estimates
In applying Finance's accounting policies, management has made a number of judgements and applied estimates and
assumptions to future events. Judgements and estimates that are material to the financial statements are found in the
following notes:
C2: General insurance activities

C3: Investment funds
C4: Superannuation
D1: Financial instruments
D3: Non-financial assets
E2: Employee provisions
With the exception of judgements and estimates applied in the above notes, no allowance is made for the effect of
changing prices on the results or the financial position.
Prior Year Adjustments
Prior year Departmental contributed equity and return of equity special accounts (liability) were adjusted to reflect a
revised estimate for the 2014-15 Property Special Account cash return. For more information, refer to Note H2.
Minor changes were made to the 2014-15 comparatives in both Departmental and Administered financial statements as
a result of the reclassification of some line items.
Finance has undertaken to produce simplified financial statements for 2015-16, by:
x Adding more information to the primary statements and schedules including budgeted figures for the financial
year;
x Placing greater emphasis on providing information that is material to users, which has resulted in the provision
of information that is more relevant, as well as the removal of disclosures that were not considered useful; and
x Relocating significant accounting policies and assumptions alongside the relevant note where possible. Unless
otherwise noted, these accounting policies and estimates apply to both Departmental and Administered
activities.
New Australian Accounting Standards (AAS)
Adoption of AAS requirements

During 2015-16 Finance adopted all applicable AAS that became effective during 2015-16. Other than noted below, the
application of new standards did not materially impact the operations of Finance.
Early adoption of AAS requirements

In 2014-15 Finance early adopted AASB 2015-7 Amendments to Australian Accounting Standards - Fair Value
Disclosures of Not-for-Profit Public Sector Entities, which applies to annual reporting periods beginning on or after
1 July 2016. AASB 2015-7 provides relief from disclosing quantitative information about significant unobservable inputs
used in fair value where property, plant and equipment is held for its current service potential rather than to generate net
cash flows. The standard has been applied and the effect is that these disclosures are no longer made.
Future AAS requirements

The AASB has issued a number of new standards, amendments to standards and interpretations that are effective for
future reporting periods. These new standards are not expected to have an impact on Finances financial statements
except for:
x AASB 9 Financial Instruments represents the finalisation of the three phase project to replace AASB 139
Financial Instruments: Recognition and Measurement. It incorporates new principles for the requirements for
recognition, impairment and measurement of financial assets and liabilities and their de-recognition and general
hedge accounting. This is likely to impact on the categorisation, recognition and measurement of financial
instruments particularly those currently held at fair value through profit or loss (FVPL). The new standard is
effective from 1 January 2018. This will result in Finance reviewing classification and disclosure of items
currently included in Note D1 against Finances business model for managing financial assets.
15
92
x AASB 124 Related Party Disclosures removes the current exemption for not-for-profit public sector entities such
as government departments, and enhances implementation guidance with examples specifically tailored to the
Australian environment. Related party transactions will be required to be disclosed to the extent necessary for
users to understand the potential effect of the relationship on the financial statements. The new standard is
effective from 1 July 2016 and will impact disclosure (and collection of information). This does not impact the
recognition or measurement of items in the financial statements, AASB 108.30(b).
x AASB 16 Leases will require lessees to recognise a right-of-use asset and a lease liability for all leases with a
term of more than 12 months, unless the underlying asset is of low value. Lessor accounting under AASB 16
remains substantially unchanged from the predecessor standard AASB 117 Leases. Accordingly, lessors will
continue to classify leases as operating or finance, and account for those two types of leases differently. A
lessor is not required to make any adjustments on transition and shall apply the new standard from the date of
its initial application. The new standard is effective from 1 January 2019. This will result in all properties Finance
occupies as lessee being brought onto the balance sheet. Disclosures relating to the domestic property portfolio
that Finance manages as lessor will require amendment including improved information about risk exposure.
16
93
Notes to and forming part of the financial statements B. Budget Variance Reporting
B. Budgetary Variance Reporting

The following are explanations of events that have impacted on Finance's operations and activities for the year that were
not provided for in the budget or otherwise included against relevant note disclosures. Users should note that a number
of these items have been included in subsequent budgets. Budget numbers are sourced from Portfolio Budget
Statements (PBS) for 2015-16 and are provided to the right of primary statements in italics to clearly distinguish them
from actual results. Budgeted numbers are not audited.
Major variances are those deemed relevant to an analysis of Finance's performance by management and are not
focussed merely on numerical differences between the actual and budgeted amounts. A note reference is included
against the relevant primary statement/schedule line item which corresponds to the explanations provided below and
elsewhere in the financial statements.
When providing explanations, Finance has identified the financial impact in relation to those key aggregates relevant to
Finance's performance. Users should be aware that there will be consequential impacts on related statements i.e. a
variance in the Statement of Comprehensive Income is likely to have consequential impacts in the Statement of Financial
Position and the Cash Flow Statement.
The Statement of Financial Position budget for 2015-16 was prepared based on 2013-14 financial results, with
adjustments for predicted or known movements at that time.
Note Affected line Items Variance Reporting

Reference
B1: Insurance Insurance claims expense Insurance claims expense variance to budget is due to lower new
claims incurred in the Property portfolio and favourable claims
Outstanding insurance
experience in the prior year outstanding claims liability.
claims
Outstanding insurance claims liability increase from budget is due to
new claims liabilities exceeding payments, and a favourable
movement in the prior year outstanding claims liability.
B2: Property Land Budget is set with reference to 2013-14 financial results for non-
financial assets such as land, buildings and investment properties.
Buildings
Actual results include impact of asset revaluations conducted at year
Investment properties end, which are difficult to predict for budget purposes, and therefore
no allowance was made in the budget.
Asset Revaluation
Reserves Property revaluation movements for 2015-16 include:
Non-financial asset write x Gains from investment properties valuation increases are
downs and revaluations largely due to land value increases in the Australian Capital
Territory as a result of rezoning.
Gains
x Write downs and revaluations of non-financial assets is a result
Rental income of decreases in building valuations primarily due to law courts
Domestic property portfolio movements resulting from specialised leasing arrangements
expenses that are not comparable to market.
x Asset revaluation reserve (ARR) movement is primarily due to
Other provisions Melbourne and Sydney land valuations which have increased in
line with market demand.
Other property movements during 2015-16 include:
x Transfer of completed assets (buildings) including Stage 2A

Villawood detention centre asset to Department of Immigration
and Border Protection ($34.5 million) and Moorebank Unit
Relocation Project (Moorebank) to the Department of Defence
($101.7 million);
x Sale of properties as part of the divestment programme (net

book value of assets disposed $8.9 million, with associated
17
94
sale proceeds of $8.4 million).
Rental revenue variance to budget is primarily due to tenant

vacancies and rent abatements provided to various tenants as a
result of interrupted tenancy.
Domestic property portfolio expenses underspend to budget is a

consequence of a delay in planned works and cancelled projects
across the portfolio.
Other provisions variance to budget is primarily due to additional

property remediation projects being added since budget.
B3: Centralised Centralised procurement Centralised procurement expense and revenue, unearned revenue
procurement expense and revenue and trade receivables variance to budget are largely due to additional
support and licensing arrangements outside the existing
Unearned revenue
arrangements with agencies for Volume Sourcing Arrangements
Trade receivables (VSA) and Internet Based Network Connection Services (IBNCS),
noting that the majority of the expenditure incurred is offset by
Accrued revenue
revenue received.
Accrued revenue variance from budget is primarily due to the

expected increase in IBNCS revenue which has been delayed as a
result of disputed invoices with a supplier. Invoices will not be issued
to agencies until this is resolved.
B4: One Lease incentive liabilities Variance to budget is the result of Finance entering into a 20-year
Canberra lease for One Canberra Avenue office accommodation and a finance
Finance lease liability
Avenue and lease for provision of a new electronic work environment during the
electronic Leasehold improvements year.
working
Lease incentive assets
environment
Plant and equipment
B5: Balances held in special Variance to budget is primarily due to project delays pushing
Departmental accounts expenditure to later years on major Departmental projects, and an
appropriations underspend relating to the Moorebank project, noting these funds are
Other Departmental
receivable no longer required and are pending return to the Official Public
undrawn
Account (OPA).
B6: Trade creditors and Variance from budget is due to timing differences for payments to
Departmental accruals suppliers between financial years.
trade creditors
and accruals
B7: Intangible Intangible assets Variance to budget is primarily due to delays in the Central Budget
assets Management System Redevelopment and other Departmental
projects.
B8: Superannuation Superannuation contributions variance to budget relates to a

Superannuation contributions decrease in employer contribution revenue received for
superannuation schemes due to a higher number of member exits
during the year and a lower than forecast salary growth rate.
Superannuation expense The Long Term Cost Report (LTCR) discount rate of 6% is used to
calculate the superannuation provisions for budget purposes to
Superannuation provisions reduce the volatility in reported provisions that would occur from year
to year if the long-term government bond rate were used. The long-
18
95
term government bond rate as at 30 June 2016 of 2.7% was used to

calculate the superannuation liability as at 30 June 2016 for financial
reporting purposes. The change in rate for budget and financial
reporting purposes has a significant impact on the superannuation
provisions and superannuation expense.
B9: Investment Net surplus comprising: Net surplus variance to budget is due to reducing yields on interest
funds investment funds gains bearing assets consistent with a falling interest rate environment.
on financial investments
and interest on term The net asset balance of the investment funds is higher than
deposits offset by originally budgeted principally due to the delays in the
investment funds other commencement of distributions from the DisabilityCare Australia
expenses and foreign Fund (DCAF), offset by lower contributions to the Medical Research
exchange losses Future Fund (MRFF) than expected.
Net assets comprising:

investment funds loans
and receivables and
financial assets at FVPL
offset by investment funds
financial liabilities and
derivative liabilities
Distribution to portfolio
special accounts.
19
96
Notes to and forming part of the financial statements C. General Business Disclosures
C. General Business Disclosures

In addition to outcome reporting, where operations are significant in size and/or nature for Finance, we have opted to
include additional disclosures to assist users of the financial statements. In 2015-16, these areas include general
insurance activities, the investment funds and superannuation.
C1 : Outcome reporting
Finance is structured to meet three outcomes per the 2015-16 PBS. Comparatives have been amended for any changes
in outcomes and programs.
Outcome/Program How outcomes are achieved Net contribution/ Note
(cost) of services ref
Outcome 1: Support sustainable Australian Government finances through providing high quality policy advice and operational N/A
support to the government and Commonwealth entities to maintain effective and efficient use of public resources.
1.1 Budget and x Production of the governments budget and financial statements; and Departmental ($81.2m) N/A
Financial Management x Seeking to improve the effectiveness and efficiency of the use of
public resources.
Outcome 2: Support an efficient and high-performing public sector through providing leadership to Commonwealth entities in N/A
ongoing improvements to public sector governance, including through systems, frameworks, policy, advice, and service
delivery.
2.1 Public Sector x Leading practice in public sector governance and accountability Administered $46.6m, N/A
Governance encompassing frameworks, policies and oversight. Departmental ($36.4m)
2.2 Transforming x Leading and supporting government decision making on the digital Departmental ($49.4m) N/A
Government economy and use of technology in government operations; and
x Scoping divestment opportunities and managing asset sales and any
residual issues arising from previous asset sales.
2.3 Property and x Providing policy, advice, guidance and support on managing Departmental $29.5m D3
Construction Commonwealth property, land and public works across the
government; and managing capital works projects and the
governments non-Defence property portfolio
2.4 Insurance and x Providing general insurance services and promoting risk Departmental $20.5m C2
Risk Management management across the government.
2.5 Procurement x Developing procurement arrangements for common goods and Departmental $5.8m N/A
Services services to maximise benefits for Commonwealth entities and
providing advice to government in relation to advertising.
2.6 Public Sector x Advising the government on managing the Future Fund, the stability Administered ($7.4b) C4
Superannuation of the governments unfunded superannuation liabilities and its Departmental ($4.9m)
associated Administered expense items and superannuation
arrangements for government employees.
2.7 Australian x Providing advice on investment mandates and governance Administered $249.4m C3
Government arrangements for the governments investment funds.
Investment Funds
Outcome 3: Support for Parliamentarians and others as required by the Australian Government through the delivery of, and N/A
advice on, entitlements and targeted assistance.
3.1 Ministerial and x This program contributes to the outcome through the provision of Administered N/A
Parliamentary advice on, access to and payment of parliamentary and post- ($524.4m)
Services parliamentary entitlements and targeted assistance to entities. Departmental ($37.8m)
20
97
In the following note disclosures, Departmental and Administered items are included together for presentation
purposes only and these balances should not be compared.
C1.1 Net result by outcome
Departmental Administered
30 June 30 June 30 June 30 June
2016 2015 2016 2015
$'000 $'000 $'000 $'000
Operating expenditure
Outcome 1 Program
1.1 Budget and Financial Management 84,946 81,315 - -
Outcome 2 Programs
2.1 Public Sector Governance 40,172 126,966 710 694
2.2 Transforming Government 62,912 53,003 - -
2.3 Property and Construction 87,949 139,476 - -
2.4 Insurance and Risk Management 106,210 99,128 - -
2.5 Procurement Services 201,780 121,414 - -
2.6 Public Sector Superannuation 4,996 4,875 8,734,544 8,657,302
2.7 Australian Government Investment Funds - - 239,037 1,412,727
Outcome 3 Program
3.1 Ministerial and Parliamentary Services 49,068 48,969 535,249 442,241
Total operating expenditure 638,033 675,146 9,509,540 10,512,964
Operating revenue
Outcome 1 Program
Outcome 2 Programs
2.1 Public Sector Governance 3,790 9,788 47,296 5,994,696
2.6 Public Sector Superannuation 110 32 1,338,645 1,381,260
2.7 Australian Government Investment Funds - - 488,459 594,115
Outcome 3 Program
Not attributed - Crown Entity - - 21,307 23,755
Total operating revenue 484,036 342,102 1,906,567 8,004,016
1
Total net cost of services (153,997) (333,044) (7,602,973) (2,508,948)
Income tax expense 3,843 5,905

Revenue from Government
Outcome 1 112,385 104,145
Outcome 2 123,933 256,786
Outcome 3 34,997 34,439
Surplus/(deficit) after income tax 113,475 56,421 (7,602,973) (2,508,948)
1
Finance uses an activity based costing system to determine the attribution of its shared items. The basis of attribution in
the above table is consistent with the basis used for the 2015-16 PBS. Net costs shown include intra-government costs
that are eliminated in calculating the actual budget outcome.
21
98
C1.2 Net assets by outcome

2016 2015 2016 2015
$'000 $'000 $'000 $'000
Assets
Outcome 1 Program
Outcome 2 Programs
2.1 Public Sector Governance 78,420 130,262 549,420 537,226
2.3 Property and Construction 1,940,430 1,856,241 - -
2.6 Public Sector Superannuation 3,466 3,342 9,898 53,040
2.7 Australian Government Investment Funds - - 16,754,073 11,401,004
Outcome 3 Program
1
Not attributed 27,417 1,206 1,059,255 1,082,145
Total assets 2,845,820 2,700,501 18,474,902 13,181,422
Liabilities
Outcome 1 Program
Outcome 2 Programs
2.1 Public Sector Governance 6,996 11,780 1,454 3,553
2.6 Public Sector Superannuation 1,908 1,897 189,380,835 153,891,062
2.7 Australian Government Investment Funds - - 48,172 79,568
Outcome 3 Program
1
Not attributed 86,886 28,313 1,560,747 1,564,472
Total liabilities 697,740 637,133 191,333,216 155,818,579
Net assets 2,148,080 2,063,368 (172,858,314) (142,637,157)

1
Assets and liabilities that cannot be reliably attributed to outcomes. The Administered amounts represent OPA
balances.
22
99
C2 : General insurance activities

Finance provides insurance and risk management services to Australian General Government Sector entities. The
classes of business cover include: Liability, Property, Motor Vehicle, and Personal Accident and Travel. In April 2015,
Finance also became responsible for managing non-asbestos workers compensation claims that were formerly the
liability of Australian River Co. Limited (ARCo).
These services are funded from the Comcover Special Account (refer to Note F4).
Policy and measurement
Premium revenue
Premium revenue includes amounts charged but excludes GST. Premiums are recognised as revenue over the period
insured which is from 1 July to 30 June each year.
Notional reinsurance expense

Finance pays a notional reinsurance charge of $5 million to the OPA which is recognised as an expense when paid.
Reinsurance and other recoveries

Reinsurance and other recoveries received or receivable in respect of gross claims paid and movements in reinsurance
and other recovery assets are recognised as revenue in the year they occur.
Reinsurance and other recovery assets are actuarially assessed as the present value of the expected future receipts,
calculated on the same basis as the outstanding claims liability.
Claims expense and outstanding claims liabilities

Claims expense represents claims payments and the movement in the gross outstanding claims liability.
The outstanding claims liability is actuarially assessed and measured at the central estimate of the present value of
expected future payments of claims incurred at the reporting date with an additional risk margin to allow for inherent
uncertainty in the central estimate. The expected future payments include those in relation to unpaid reported claims;
claims incurred but not reported (IBNR); claims incurred but not enough reported (IBNER); and indirect expenses that
are expected to be incurred in settling these claims. Changes in claims estimates are recognised in the surplus/deficit in
the year in which the estimates are changed.
Assets backing general insurance liabilities

The balance of the Comcover Special Account and receivables from insurance activities are held to back general
insurance liabilities. For further information in relation to the Comcover Special Account refer to Note F4.1.
Finance takes all reasonable steps to ensure that it has appropriate information regarding its claims exposures. The
claim estimates and judgements are regularly evaluated and updated based on historical experience and other factors.
However, given the uncertainty in the estimation process, it is likely that the final outcome will prove to be different from
the original liability established.
Finances activities are classified into two main categories: Property (Property, Motor Vehicle, and Personal Accident
and Travel) and Liability (Liability and Workers Compensation). Different actuarial methods and assumptions are
applied at a more granular level taking into account the characteristics of the class of business, claim type and the extent
of the development of each past accident period.
The estimation of IBNR and IBNER are generally subject to a greater degree of uncertainty where claims notification and
settlement may not happen for many years after the event giving rise to the claim. For this reason, Liability classes of
business typically display greater variability between the initial estimates and final outcomes.
23
100
Key actuarial assumptions
The key actuarial assumptions for the determination of the outstanding claims liabilities are set out in the table below:
30 June 2016 30 June 2015

Property Liability Property Liability
Average discount rate 1.6% 1.7% 2.2% 2.3%
Average inflation rate 2.2% 3.5% 2.5% 3.8%
Average weighted term to settlement (years) 1.6 2.8 1.6 2.8
Expense rate 1.9% 3.1% 1.8% 3.3%
Risk margin 16.1% 19.6% 16.2% 19.8%
Process used to determine actuarial assumptions
Discount rate To allow for the time value of money, projected payments are discounted at a risk free rate derived
from market yields on Commonwealth Government securities at the reporting date.
Inflation rate Claims inflation is incorporated into the resulting projected payments to allow for both expected
levels of economic inflation and superimposed inflation. Economic inflation is based on economic
indicators such as the consumer price index (CPI) and/or increases in average weekly earnings.
Superimposed inflation is past claims inflation in excess of wage inflation. A review of past claims
reveals no evidence of superimposed inflation.
Average The average weighted term to settlement is based on historic payment patterns.
weighted term
to settlement
Expense rate Claims handling expenses are calculated by reference to Finances claims handling remuneration
agreements for direct expenses and internal costs for indirect expenses.
Risk Margin The risk margin is assessed by examining the historical variability of the claims experience,
considering industry studies and benchmarks, and applying actuarial judgement, especially in
respect of uncertainties not reflected in the claims data. This assessment is performed for each
class of business. Diversification benefit is allowed for, with consideration given to industry studies
and benchmarks.
Sensitivity analysis
Finance has conducted a sensitivity analysis to quantify the impact of changes in the key underlying assumptions on the
surplus/deficit. The sensitivity analysis has been performed for each variable independently of all other changes and is
net of reinsurance and other recoveries. The table below describes how a change in each assumption will affect the
surplus/deficit.
30 June 2016 30 June 2015

Property Liability Property Liability
Assumption Movement $'000 $'000 $'000 $'000
1% 1,716 6,635 1,244 6,764
Average discount rate
-1% (1,788) (7,007) (1,296) (6,834)
1% (1,777) (6,750) (1,294) (6,746)
Average inflation rate
-1% 1,740 6,528 1,267 6,519
+ 1 years (985) (4,940) (349) (3,534)
Average weighted term to settlement (years)
- 1 years 668 5,142 389 4,217
1% 1,080 2,352 772 2,424
Expense rate
-1% (1,080) (2,352) (772) (2,424)
1% (948) (2,028) (674) (2,043)
Risk margin
-1% 948 2,028 674 2,043
The movements are the absolute movement in the assumption (e.g. +1% increase in the expense rate for Property from
1.9% to 2.9%).
24
101
Insurance risk management

Finance is exposed to insurance risk which is discussed below.
a) Objectives, policies and processes for managing insurance risk

Finance provides insurance and risk management services to deliver a net benefit to the Australian Government over the
longer term. The transfer of insurance risk from participating general government sector entities offers the most
comprehensive and cost effective approach to the management of risk exposures. The provision of a captive fund
focuses on improving risk identification and management in entities and increases in transparency and accountability to
the Australian Government and the public.
Key processes to manage insurance risk include:

x Detailed risk exposure surveys and benchmarking tools identifying insurable risks
x Actuarial modelling of claims history, exposures and industry experience to provide an estimate of expected claims
costs for the insured year and to assist in the determination of the annual premium collection
x Claim management and investigation processes
x Appointment of an independent actuary for valuation services of the outstanding claims liability
x WoAG policy development and risk management education to improve risk awareness and capability of fund
members
x Governance frameworks within Finance
b) Concentration of insurance risk

No reinsurance policies were placed in 2015-16 (2014-15: nil), reflecting the capacity of the Australian Government to cost-
effectively self-insure against infrequent large claims.
C2.1 Underwriting result

Departmental
30 June 30 June
2016 2015
$'000 $'000
Direct premium revenue
Premium revenue 125,149 100,871
Premium revenue eliminated on consolidation 1,163 1,202
Total direct premium revenue 126,312 102,073
Notional reinsurance expense (5,000) (5,000)
Net premium revenue 121,312 97,073
Net incurred claims

Insurance claims (94,295) (76,462)
Reinsurance and other recoveries revenue 1,504 -
Reinsurance and other recoveries expense - (11,170)
Total net claims (92,791) (87,632)
Other underwriting expenses (8,061) (7,700)

Underwriting result 20,460 1,741
Revenue from government 10,151 9,111
Operating surplus/(deficit) 30,611 10,852
25
102
C2.2 Net claims incurred

30 June 2016 30 June 2015
Current Prior Current Prior
year years Total year years Total
$'000 $'000 $'000 $'000 $'000 $'000
Gross claims incurred
Undiscounted 111,006 (25,830) 85,176 122,964 (52,707) 70,257
Discount and discount movement (5,071) 10,356 5,285 (7,477) 9,886 2,409
Gross claims incurred discounted 105,935 (15,474) 90,461 115,487 (42,821) 72,666

Undiscounted (372) (825) (1,197) (509) 11,335 10,826
Discount and discount movement 1 (308) (307) 2 342 344
discounted (371) (1,133) (1,504) (507) 11,677 11,170
Net claims incurred 105,564 (16,607) 88,957 114,980 (31,144) 83,836

Claims handling expense 3,834 3,796
Total net claims 92,791 87,632
The $16.6 million decrease in prior years net claims incurred is due to valuation releases arising from favourable claims
experience in the Liability portfolio exceeding adverse claims experience in the Property portfolio.
C2.3 Reinsurance and other recoveries receivable

Departmental
30 June 30 June
2016 2015
$'000 $'000
Reinsurance and other recoveries 6,758 6,863
Discount to present value (375) (682)
Total reinsurance and other recoveries 6,383 6,181
Reinsurance and other recoveries expected to be recovered

No more than 12 months 2,855 3,640
More than 12 months 3,528 2,541
Total reinsurance and other recoveries 6,383 6,181
26
103
C2.4 Outstanding claims liability

Departmental
30 June 30 June
2016 2015
$'000 $'000
Gross claims liability - undiscounted 301,843 285,292
Discount to present value (12,136) (16,358)
Gross claims liability - discounted 289,707 268,934
Claims handling expense 7,875 7,811
Gross central estimate 297,582 276,745
Risk margin 55,005 52,260
Outstanding claims liability 352,587 329,005
Risk margin adopted 18.5% 18.9%

Probability of adequacy of the risk margin 75% 75%
Outstanding claims liability expected to be settled

No more than 12 months 104,891 94,833
More than 12 months 247,696 234,172
Total outstanding claims liability 352,587 329,005
Reconciliation of the movement in discounted outstanding claims liability

30 June
30 June 2016
2015
Property Liability Total Total
$'000 $'000 $'000 $'000
Net outstanding claims liability at the beginning of the financial
year 78,246 244,578 322,824 308,027
Incurred claims 36,016 69,548 105,564 114,980
Claims payments (25,744) (39,833) (65,577) (72,560)
Claims transferred from ARCo - - - 3,521
Unwinding of discount 1,138 3,701 4,839 5,447
Risk margin release (2,990) (6,270) (9,260) (9,970)
Changes in assumptions and experience 22,176 (38,297) (16,121) (30,920)
Change in discount rate 808 3,127 3,935 4,299
Net outstanding claims liability at the end of the financial
year 109,650 236,554 346,204 322,824
Reinsurance and other recoveries 403 5,980 6,383 6,181
Gross outstanding claims liability at the end of the financial
year 110,053 242,534 352,587 329,005
27
104
C2.5 Claims development table
The following table shows the development of the estimated undiscounted outstanding claims relative to the ultimate expected claims for the 10 most recent accident years.
Prior 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Total
$'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000
Estimate of net ultimate claims costs
At end of accident year 49,813 48,840 45,062 50,778 121,801 61,550 66,779 114,162 102,138 91,686
One year later 60,265 47,451 43,312 48,922 108,067 70,345 63,441 106,114 119,144
Two years later 53,255 45,204 48,191 47,317 100,453 67,843 65,399 96,653
Three years later 52,693 48,962 45,043 70,257 91,789 68,396 62,028
Four years later 53,884 46,215 46,681 65,808 84,123 67,312
Five years later 54,434 47,361 47,758 65,956 82,395
Six years later 52,900 45,257 44,336 51,423
Seven years later 53,443 43,452 44,757
Eight years later 54,816 42,922
Nine years later 55,704
Estimate of net ultimate claims costs 55,704 42,922 44,757 51,423 82,395 67,312 62,028 96,653 119,144 91,686
Cumulative payments (52,798) (42,316) (41,540) (46,358) (76,031) (46,241) (42,655) (36,308) (32,037) (8,997)
Net discounted claims
liability 7,509 2,906 606 3,217 5,065 6,364 21,071 19,373 60,345 87,107 82,689 296,252
Discount to present value (139) (47) (12) (46) (95) (163) (566) (682) (2,434) (3,486) (4,155) (11,825)
Net discounted claims
liability 7,370 2,859 594 3,171 4,970 6,201 20,505 18,691 57,911 83,621 78,534 284,427
Claims handling expense 7,875
Net central estimate 292,302
Net risk margin 53,902
Total net outstanding claims liability 346,204
Reinsurance and other recoveries 6,383
Total gross outstanding claims liability 352,587
The claims development table discloses amounts net of reinsurance and other recoveries to give the most meaningful insight into the impact on profit or loss.
28
105
C3 : Investment funds
Finance provides advice on investment mandates and governance arrangements for the investment funds. This includes
advice on the credit of amounts to and debits for payment from the investment funds. The Future Fund Board of
Guardians (the Board), supported by the Future Fund Management Agency (FFMA), is responsible for the management
and investment of the assets of the investment funds. The investment funds consist of the following:
x Building Australia Fund (BAF) - an investment fund established by the Nation-building Funds Act 2008 to make
payments in relation to the creation or development of transport, communication, eligible national broadband
network, energy and water infrastructure.
x Education Investment Fund (EIF) - an investment fund established by the Nation-building Funds Act 2008 to make
payments in relation to the creation or development of higher education, research, vocational education and training,
and eligible education infrastructure and to make transitional Higher Education Endowment Fund payments.
x Health and Hospitals Fund (HHF) - an investment fund established by the Nation-building Funds Act 2008 to make
payments in relation to the creation or development of health infrastructure. The HHF was closed on
29 October 2015 by the Medical Research Future Fund (Consequential Amendments) Act 2015.
x DisabilityCare Australia Fund (DCAF) - an investment fund established by the DisabilityCare Australia Fund Act
2013 to reimburse the Commonwealth, states and territories for costs incurred in relation to the National Disability
Insurance Scheme Act 2013.
x Medical Research Future Fund (MRFF) - a financial asset fund established under the Medical Research Future
Fund Act 2015 to support medical research and innovation into the future. The MRFF commenced on
22 September 2015.
In applying Finance's accounting policies, management has made a number of judgements and applied estimates and
assumptions to future events. Judgements and estimates which are material to the financial statements are located
throughout the investment funds disclosure.

Investment Mandates were issued by the responsible Ministers on 14 July 2009 for the BAF, EIF and HHF and on 1 July
2014 for the DCAF. The Investment Mandates set a target benchmark return of the Australian three month bank bill
swap rate + 0.3% per annum calculated on a rolling 12 month basis (net of fees). The Investment Mandates also require
the Board to invest in such a way as to minimise the probability of capital losses over a 12 month horizon.
The investment mandate for the MRFF was issued by the responsible minister on 8 November 2015. This mandate
states that the Board is to adopt an average return of at least the Reserve Bank of Australia Cash Rate target + 1.5 to
2.0 per cent per annum, net of investment fees, over a rolling 10 year term as the benchmark return on the Fund. In
targeting the benchmark return, the Board must determine an acceptable but not excessive level of risk measured in
terms such as the probability of losses in a particular year.
All investments are designated as financial assets through profit or loss on acquisition. Subsequent to initial recognition,
all investments held at FVPL are measured at fair value with changes in their fair value recognised in the Schedule of
Comprehensive Income each reporting date. Investments are recognised and derecognised on trade date where
purchase or sale of an investment is under a contract whose terms require delivery of the investment within the
timeframe established by the market concerned. Investments are initially measured at fair value, net of transaction costs
that are directly attributable to acquisition or issue of the investment. Investments in collective investment vehicles are
recorded at fair value on the date which consideration is provided to the contractual counterparty under the terms of the
relevant subscription agreement. Any associated due diligence costs in relation to these investments are expensed
when incurred.
The following methods are adopted by the investment funds in determining the fair value of investments:
x Listed securities, exchange traded futures and options and investments in listed managed investment schemes
are recorded at the quoted market prices on relevant stock exchanges.
x Unlisted managed investment schemes and collective investment vehicles are re-measured by the investment
funds based on the estimated fair value of the net assets of each scheme or vehicle at the reporting date.
In determining the fair value of the net assets of unitised unlisted managed investment schemes and collective
investment vehicles, reference is made to the underlying unit price provided by the manager (where available),
capital account statements and the most recent audited financial statements of each scheme or vehicle.
29
106
Manager valuation reports are reviewed to ensure the underlying valuation principles are materially compliant with
AAS and applicable industry standards including International Private Equity and Venture Capital Valuation
Guidelines as endorsed by the Australian Private Equity and Venture Capital Association Limited.
x Derivative instruments including forward foreign exchange contracts, swaps, futures, forward contracts on
mortgage backed securities and options are recorded at their fair value on the date the contract is entered into
and are subsequently re-measured to their fair values at each reporting date. Further disclosures regarding the
use of derivatives by the investment funds is presented in Note C3.4.
x Asset backed securities, bank bills, negotiable certificates of deposit and corporate debt securities which are
traded in active markets are valued at the quoted market prices. Securities for which no active market is
observable are valued at current market rates using broker sourced market quotations and/or independent pricing
services as at the reporting date.
MRFF Investment Companies (MRFFICs)

Whilst all investments are held by the Board in respect of the relevant investment fund, some investments are indirectly
held through wholly owned investment holding companies, MRFFICs. The MRFFICs are funded primarily via loan
arrangements from the MRFF and each respective MRFFIC. These loans are designated as financial assets and
measured at fair value with changes in their fair value recognised in the Schedule of Comprehensive Income each
reporting date. Loan assets are repayable on demand. Interest rates are set on the loans having regard to the 10-year
government bond rate in the market in which the underlying investment is made. As the MRFFICs hold a portion of the
investments of the investment funds, these are recorded on a net assets basis in Finances primary schedules. For risk
management purposes these are disclosed by the underlying investment held by the MRFFICs as this provides users
with more relevant information in relation to the investment portfolio and Finances exposure.
30
107
C3.1 Investment funds operating results

BAF EIF HHF DCAF MRFF Total Total
30 June 30 June 30 June 30 June 30 June 30 June 30 June
2016 2016 2016 2016 2016 2016 2015
$'000 $'000 $'000 $'000 $'000 $'000 $'000
Revenue
Gains on financial
instruments at FVPL
Foreign exchange gains
Net unrealised foreign
exchange gains 11,283 16,517 3,538 38,049 23,747 93,134 -
Total foreign exchange
gains 11,283 16,517 3,538 38,049 23,747 93,134 -
Interest bearing securities
Bank bills and negotiable
certificates of deposit 33,765 24,828 1,487 19,790 14,489 94,359 73,748
Mortgage backed
securities 10,957 10,380 625 18,992 4,144 45,098 32,291
Corporate debt securities 13,531 19,884 1,539 31,290 11,953 78,197 54,626
Government debt
securities 778 1,395 169 1,206 1,503 5,051 4,442
Asset backed securities 581 754 39 2,147 734 4,255 2,143
MRFFICs loans - - - - 488 488 -
Other income 105 500 2 6,083 242 6,932 3,934
Total interest bearing
securities 59,717 57,741 3,861 79,508 33,553 234,380 171,184
Realised gains (losses) 75,212 116,434 83,777 36,345 (12,190) 299,578 116,615
Unrealised gains (losses) (72,552) (92,753) (53,673) (35,720) 10,974 (243,724) 206,297
Total gains on financial
instruments at FVPL 73,660 97,939 37,503 118,182 56,084 383,368 494,096
Interest 27,922 26,720 5,169 26,358 12,777 98,946 100,019
Dividends and distribution
income - - - 6 6,141 6,147 -
Total revenue 101,582 124,659 42,672 144,546 75,002 488,461 594,115
Expenses
Net realised foreign
exchange losses 8,140 30,417 32,365 20,748 14,618 106,288 224,482
Net unrealised foreign
exchange losses - - - - - - 62,231
Suppliers expenses 3,573 3,892 379 3,920 3,327 15,091 11,006
Total expenses 11,713 34,309 32,744 24,668 17,945 121,379 297,719
Net investment funds return 89,869 90,350 9,928 119,878 57,057 367,082 296,396
Distributions to portfolio
special accounts 6,920 55,754 54,984 - - 117,658 1,115,009
Net surplus 82,949 34,596 (45,056) 119,878 57,057 249,424 (818,613)
31
108
C3.2 Investment funds financial position

BAF EIF DCAF MRFF Total Total
30 June 30 June 30 June 30 June 30 June 30 June
2016 2016 2016 2016 2016 2015
$'000 $'000 $'000 $'000 $'000 $'000
Assets
Financial assets designated at
FVPL
Interest bearing securities
Bank bills - - - 138,146 138,146 -
Negotiable certificates of deposit 1,375,151 1,072,561 1,474,008 591,722 4,513,442 2,711,614
Corporate debt securities 644,574 844,304 1,719,307 515,646 3,723,831 3,043,135
Mortgage backed securities 382,944 360,365 677,128 154,263 1,574,700 1,309,251
Government debt securities 101,985 201,976 307,577 117,438 728,976 262,306
Asset backed securities 61,381 86,574 324,330 156,923 629,208 285,948
Other fixed income securities 18,354 36,728 199,909 17,546 272,537 -
Other investment
MRFFICs equities - - - 54,302 54,302 -
MRFFICs loans - - - 259,450 259,450 -
Listed equities and managed
investment schemes - - - 114,396 114,396 -
Collective investment vehicles - - 74,918 315,769 390,687 -
Derivatives
Currency contracts 12,035 15,610 30,525 32,215 90,385 12,312
Interest rate swap agreements 1,311 2,500 - - 3,811 2,190
Credit default swaps - - - 489 489 -
Forward contracts on mortgage
backed securities 4 35 98 47 184 -
Total financial assets designated
at FVPL 2,597,739 2,620,653 4,807,800 2,468,352 12,494,544 7,626,756
Loans and receivables
Cash and cash equivalents 1,101,704 1,105,935 1,286,914 741,954 4,236,507 3,766,352
Interest receivable 2,214 2,155 2,643 1,329 8,341 7,896
Dividends and distribution
receivables - - 6 1,585 1,591 -
Unsettled sales 109 204 - 11,294 11,607 -
Imputation credits refundable - - - 1,483 1,483 -
Total loans and receivables 1,104,027 1,108,294 1,289,563 757,645 4,259,529 3,774,248
Total assets 3,701,766 3,728,947 6,097,363 3,225,997 16,754,073 11,401,004
Liabilities
Financial liabilities designated at
FVPL
Derivatives
Currency contracts 3,061 4,434 8,307 4,742 20,544 47,050
Interest rate swap agreements 1,290 2,396 - 1 3,687 5,233
Credit default swaps - - - 2,083 2,083 -
Total financial liabilities
designated at FVPL 4,351 6,830 8,307 6,826 26,314 52,283
Financial liabilities measured at
amortised cost
Trade creditors and accruals 969 1,074 1,606 1,821 5,470 3,136
Unsettled purchases 968 1,070 3,411 10,940 16,389 24,150
Total financial liabilities
measured at amortised cost 1,937 2,144 5,017 12,761 21,859 27,286
Total liabilities 6,288 8,974 13,324 19,587 48,173 79,569
Net assets 3,695,478 3,719,973 6,084,039 3,206,410 16,705,900 11,321,435
32
109
Collective investment vehicles
The investment funds, directly and via the MRFFICs have committed to provide capital to various collective investment
vehicles. The total of these commitments at balance date is $40.2 million (2015: $nil). The investment funds
commitments, being capital calls, are set out in the various underlying subscription documents. Whilst the actual timing of
the capital calls to be made by the managers of these vehicles is uncertain, as it is dependent on the managers sourcing
suitable investment opportunities, the investment funds have recorded the commitments as being current in accordance
with the underlying legal documents. The investment funds have appropriate liquidity planning in place to ensure a
suitable allocation of resources will be available to cover these future commitments of capital.
The table below provides more detailed information on the commitments and outstanding calls of collective investment
vehicles held directly by the MRFF, DCAF and via MRFFICs at balance date:
Capital Outstanding
Description on Committed as at Commitments Net Capital cost Fair Value as at
underlying 30/06/2016 as at 30/06/2016 at 30/06/2016 30/06/2016
Strategy Local Currency AUD equivalent AUD Equivalent AUD Equivalent
$'000 $'000 $'000
Directly held by MRFF and DCAF
AUD
Debt $100,000,000 - 100,000 99,029
Alternatives AUD $295,000,000 - 295,000 291,658
Total - 390,687
Via MRFFICs
Alternatives USD $50,000,000 - 69,018 65,155
Private equity AUD $6,275,000 1,111 5,164 5,434
Private equity EUR 52,683,895 13,623 65,058 73,653
Private equity USD $139,505,758 25,472 156,015 162,122
Total 40,206 306,364
C3.3 Managing Financial Risk
The investment funds have entered into derivative contracts to manage their exposure to foreign exchange risk, interest
rate risk, equity market risk and credit risk. The investment funds also use derivatives to gain indirect exposure to market
risks. The use of derivative financial instruments by the investment funds is governed by the Nation-building Funds Act
2008, the DisabilityCare Australia Fund Act 2013 and the Medical Research Future Fund Act 2015.
C3.3.1 Market risk
Market risk is the risk of loss arising from movements in the prices of various assets flowing from changes in interest
rates and foreign currency.
(i) Interest rate risk
Interest rate risk exposure
The investment funds are exposed to interest rate risk in relation to their investments. The total exposure for each class
of financial asset is set out below.
33
110
Floating Fixed interest Non-interest

Financial assets exposed to interest rate risk interest rate rate bearing Total
2016 $'000 $'000 $'000 $'000
Cash and cash equivalents 4,236,507 - - 4,236,507
Interest bearing securities 4,335,503 7,245,337 - 11,580,840
Other financial assets - - 936,726 936,726
Total investment 8,572,010 7,245,337 936,726 16,754,073
Total interest rate swaps (notional amount)
Pay (78,754) (168,092) -
Receive 168,092 78,754 -
2015
Cash and cash equivalents 3,766,352 - - 3,766,352
Interest bearing securities 3,623,458 3,988,796 - 7,612,254
Other financial assets - - 22,398 22,398
Total investment 7,389,810 3,988,796 22,398 11,401,004
Total interest rate swaps (notional amount)
Pay (177,772) (282,996) -
Receive 282,996 177,772 -
Interest rate derivative contracts

The investment funds had open positions in exchange traded interest rate futures contracts and interest rate swap
agreements at reporting date. Interest rate derivatives contracts are used by the investment fund's managers to manage
the exposure to interest rate risk and to ensure it remains within approved limits. The notional value of the open contracts
and their fair value are set out below.
Notional Fair market Fair market

value value Notional value value
2016 2016 2015 2015
$'000 $'000 $'000 $'000
Open contracts
Buy domestic interest rate futures contracts 420,405 1,784 - -
Sell domestic interest rate futures contracts (134,984) (115) (24,755) (9)
Buy international interest rate futures contracts 509,630 (3,313) 190,829 2,196
Sell international interest rate futures contracts (2,528,442) 49,096 (1,114,389) (27,429)
Receiver (fixed) interest rate swap agreements 78,754 3,811 177,772 (1,594)
Payer (fixed) interest rate swap agreements (168,092) (3,687) (282,996) (1,450)
Buy forward contracts on mortgage backed
securities 63,833 187 - -
Sell forward contracts on mortgage backed
securities (2,787) (3) - -
Total open contracts 47,760 (28,286)
34
111
Interest rate sensitivity analysis

The impact of a change in interest rates is disclosed in the table below, with all other variables held constant. The table
demonstrates the impact on the operating result of a 30 basis point (2015: 40 basis point) change in bond yields with all
other variables held constant. It is assumed that the 30 basis point change occurs as at the reporting date and there are
concurrent movements in interest rates and parallel shifts in the yield curves. A 30 basis point movement would impact
on the debt portfolios' (including derivatives) contribution to the investment fund's operating result. The impact on the
operating result includes the increase/(decrease) in interest income on floating rate securities from the basis point
change.
Sensitivity by year Risk variable Change in risk variable Net cost of services
% $'000
2016 Discount rate +0.3% 9,297
-0.3% (8,262)
2015 Discount rate +0.4% 20,820
-0.4% (18,665)
(ii) Foreign currency risk

The investment funds undertake certain transactions denominated in foreign currencies and are therefore exposed to the
effects of exchange rate fluctuations. Exchange rate exposures are managed utilising forward foreign exchange
contracts. The exposure in AUD equivalents to foreign currency risk at reporting date is as follows.
Financial assets exposed to currency risk USD EURO GBP Other Total
2016 $'000 $'000 $'000 $'000 $'000
Cash and cash equivalents 189,460 59,848 34,739 (9,715) 274,332
Interest bearing securities 2,299,678 840,596 734,972 750,879 4,626,125
Listed equities 880 - - - 880
Collective investment vehicles 227,276 73,653 - - 300,929
Other investments (1,507) 1,133 (221) (981) (1,576)
Receivables 11,197 417 7 (1) 11,620
Payables (490) - (5,448) (10,350) (16,288)
Total physical exposure 2,726,494 975,647 764,049 729,832 5,196,022
Forward exchange contracts
Buy foreign currency 690,496 224,773 5,849 2,995 924,113
Sell foreign currency (3,031,318) (1,194,599) (771,607) (653,436) (5,650,960)
Total derivative exposure (2,340,822) (969,826) (765,758) (650,441) (4,726,847)
Net exposure 385,672 5,821 (1,709) 79,391 469,175
Financial assets exposed to currency risk

2015
Cash and cash equivalents 164,382 24,315 11,314 528 200,539
Interest bearing securities 2,066,773 532,020 628,942 - 3,227,735
Receivables 2 - - - 2
Payables (7,081) (19) - - (7,100)
Total physical exposure 2,224,076 556,316 640,256 528 3,421,176
Forward exchange contracts
Buy foreign currency 267,912 501,540 11,793 4,737 785,982
Sell foreign currency (2,437,284) (1,053,635) (651,053) (4,807) (4,146,779)
Total derivative exposure (2,169,372) (552,095) (639,260) (70) (3,360,797)
Net exposure 54,704 4,221 996 458 60,379
35
112
Foreign currency sensitivity analysis

The sensitivity analysis table below demonstrates the impact on the operating result of a movement in the value of the
AUD relative to the actual net exposures as at year end, with all other variables held constant.
Sensitivity by year Risk variable Change in risk variable Net cost of services
% $'000
2016 Exchange rate +10.5% 89,666
-10.5% (89,665)
2015 Exchange rate +10.9% 7,026
-10.9% (7,026)
(iii) Other price risk

The MRFF and MRFFICs are exposed to price risk arising from equity investments. The equity price risk is the risk that
the value of the MRFF equity portfolio will decrease as a result of changes in the levels of equity indices and the price of
individual stocks. The MRFF and MRFFICs are held at FVPL. The exposure to equity price risk at the reporting date was
as follows.
30 June
2016
$'000
Domestic equities and managed investment schemes 113,516
International equities and managed investment schemes 880
Total equity price risk exposure 114,396
Equity derivative contracts

Equity futures are used to manage the exposure to equity price risk. The notional value and fair value of the MRFF open
positions at 30 June 2016 are set out in the following table.
Fair market
Notional value value
30 June 30 June
2016 2016
$'000 $'000
Buy domestic equity futures contracts 2,070 4
Sell domestic equity futures contracts (4,011) -
Buy international equity futures contracts 249,547 909
Total equity derivative contracts 247,606 913
Equity price sensitivity analysis

The analysis below demonstrates the impact on the MRFF and MRFFICs operating result of the following movement.
x +/- 20% on Australian equities
x +/- 15% on International equities
The sensitivity analysis has been performed to assess the direct risk of holding equity instruments. The analysis is
undertaken on the base currency values of the underlying exposures.
30 June
Impact on operating results 2016
$'000
20% increase in Australian equities 24,412
15% increase in International equities 69,789
Total 94,201
20% decrease in Australian equities (24,412)

15% decrease in International equities (69,793)
Total (94,205)
36
113
C3.3.2 Liquidity risk management
Liquidity risk is the risk that the investment funds will not be able to meet their obligations as they fall due. The Nation
Building Funds (NBFs) and DCAF are currently invested in cash and cash like instruments under the current investment
mandate. Accordingly, the risk of these funds not being able to meet their obligations is low. The MRFF must be in a
position to meet the distribution payments required of it up to the amount periodically declared as distributable by the
Board which is managed under the Short-term Liquidity Risk Policy. This includes a short term crash test which is applied
to the portfolio to ensure it is able to meet its immediate cash flow obligations under a plausible but very severe market
dislocation.
C3.3.3 Credit risk
Credit risk is the risk of loss that arises from a counterparty failing to meet their contractual commitments in full and on
time, or from losses arising from the change in value of a traded financial instrument as a result of changes in credit risk
on that instrument. The Board sets limits on the credit ratings of debt investments when appointing investment
managers. These limits are reflected in the underlying investment mandates and are monitored by the FFMA with
compliance reported to the Board. The investment fund's maximum exposure to credit risk at reporting date in relation to
each class of recognised financial asset is the carrying amount of those assets as indicated in the investment funds
financial position.
30 June 30 June As at 30 June 2016, the investment funds

2016 2015 had an exposure of greater than 10% of
Interest bearing securities issued by $'000 $'000 its net assets to interest bearing
Commonwealth Bank of Australia 4,383,243 3,846,328 securities issued by domestic banks and
Westpac Banking Corporation 1,338,045 716,056 cash deposits held with banks.
National Australia Bank 1,628,136 821,524 Exposures to individual counterparties
Australia and New Zealand Banking Group 1,609,695 757,829 greater than 5% of the net assets of the
The Northern Trust Company 767,866 789,990 investment funds are identified in this
Total 9,726,985 6,931,727 table.
Credit exposure by credit rating

30 June 30 June
2016 2015 The investment funds use Moody's and
$'000 $'000 Standard & Poors credit rating scales to
Long-term rated securities report exposure to credit risk. The long
term credit risk exposures range from
AAA 2,183,656 1,586,378
AAA (extremely strong capacity to meet
AA 5,080,944 4,406,115
financial commitments) to below
A 3,201,138 2,564,496
investment grade/not rated. The
BBB 237,124 15,095
investments classified as below
Below investment grade/not rated 292,349 -
investment grade are held in debt
Short-term rated securities
mandates. This table provides
A-1+ 4,520,022 2,455,732
information regarding the credit risk
Other
exposures of the debt instruments held
US Government Guaranteed 302,115 350,793 by the investment funds at reporting date
Total debt securities held 15,817,348 11,378,609 according to the credit ratings of the
Other non-debt financial assets 936,725 22,395 underlying debt instruments.
Total financial assets 16,754,073 11,401,004
37
114
Credit risk derivatives

The investment funds managers utilise credit default swaps to gain exposure to, and to hedge, credit risk. The
investment funds transact in credit default swaps in the form of centrally cleared over-the-counter contracts. Centrally
cleared transactions are cash margined at least daily. Managers are required to fully cash back all sold credit protection
positions. Outstanding positions are marked to market and collateralisation of out of the money positions is required by
the central clearing exchange.
Notional value Fair market value

30 June 30 June
2016 2016
$'000 $'000
The notional value of the open credit default
Buy credit protection 114,236 (1,888) swap positions, the impact on increasing or
Sell credit protection (9,267) 294 reducing credit exposures and their fair value
Total 104,969 (1,594) are set out in this table for the MRFF.
38
115
C4 : Superannuation
C4.1 Overview of schemes
Finance administers the following defined benefit superannuation schemes on behalf of the government:
x Commonwealth Superannuation Scheme (CSS), including the 1922 Scheme;

x Public Sector Superannuation Scheme (PSS);
x Parliamentary Contributory Superannuation Scheme (PCSS);
x Governor-General Pension Scheme (G-GPS);
x Judges' Pensions Scheme (JPS), and
x Federal Circuit Court Judges Death and Disability Scheme (FCCJDDS).
The CSS, PSS and PCSS are closed to new members.
Finance recognises an administered liability for the present value of the Australian Government's expected future
payments arising from the PCSS, JPS, G-GPS and FCCJDDS and the unfunded components of the 1922 Scheme, CSS
and PSS. These liabilities are based on an annual actuarial assessment. The funded components of these schemes are
reported in the financial statements of the respective schemes. Finance also has the responsibility to record the
Australian Government's transactions in relation to the above schemes.
Actuarial gains or losses are recognised in equity in the year in which they occur. Interest on the net defined benefit
liability is recognised in the surplus/(deficit); the return on plan assets excluding the amount included in interest income is
recognised in equity.
Superannuation liabilities are calculated annually as the present value of future benefit obligations less the fair value of
scheme assets. The rate used to discount future benefits is determined by reference to the government bond rate at the
reporting date.
Amounts recognised in the Schedule of Comprehensive Income and Schedule of Assets and Liabilities
Other
CSS PSS PCSS G-GPS JPS FCCJDDS Total
$'000 $'000 $'000 $'000 $'000 $'000 $'000
30 June 2016
Revenues 111,649 1,225,581 1,001 - - - 1,338,231
Expenses 2,970,646 5,608,162 48,356 773 86,562 704 8,715,203
OCI (9,730,040) (20,827,810) (181,590) (1,244) (121,172) 606 (30,861,250)
Liabilities 86,124,618 100,612,550 1,242,850 22,168 1,363,326 2,026 189,367,538
30 June 2015
Revenues 157,060 1,205,671 1,179 - - - 1,363,910
Expenses 3,096,967 5,399,808 51,650 893 90,200 699 8,640,217
OCI (5,473,800) (4,848,408) 30,388 269 (7,800) (643) (10,299,994)
Liabilities 76,798,308 74,799,795 1,056,935 21,654 1,199,200 2,456 153,878,348
2016 2015
Superannuation liabilities expected to be settled $'000 $'000
No more than 12 months 6,337,614 6,336,705
More than 12 months 183,029,924 147,541,643
Total superannuation liabilities 189,367,538 153,878,348
39
116
C4.2 Scheme information
The funding arrangements for the various schemes are as follows:
Scheme Funding arrangements
1922 Scheme Unfunded. There are no longer any members contributing under this Act. Benefits are paid to
members from the Consolidated Revenue Fund (CRF).
CSS and PSS Partially funded. Contributions generally comprise basic member contributions and employer
productivity (up to three per cent) contributions. Unfunded benefits are paid to members from the
CRF.
PCSS Unfunded. Member contributions are a fixed percentage of: parliamentary allowance; salary for
Ministers of State; and allowance by way of salary for office holders, which is paid into the CRF.
Unfunded benefits are paid to members from the CRF.
G-GPS, JPS Unfunded. Members are not required to contribute towards the cost of their benefit during their term
and FCCJDDS of appointment. Unfunded benefits are paid to members from the CRF.
The nature of the benefits provided under the schemes are as follows:
Scheme Benefits Paid

1922 Scheme The benefit payable is a lifetime indexed pension (indexed in January and July) in line with changes
in the CPI. The payments and liabilities in respect of these members are included in the CSS
amounts.
CSS The types of benefits payable are a lifetime indexed pension (indexed in January and July) in line
with changes in the CPI, a lifetime non-indexed pension and a lump sum payment. The main
retirement benefit is the employer-financed indexed pension that is calculated by a set formula
based on a member's age, years of contributory service and final salary.
Where a member has preserved their benefit in the scheme, when the benefit becomes payable
the employer financed index pension is calculated by applying age-based factors to the amount of
two and a half times the member's accumulated basic member contributions and interest.
Members basic contributions, employer productivity contributions and interest can be taken as a
lump sum or an additional non-indexed lifetime pension. This benefit is determined by the value of
contributions and investment returns, and in the case of the non-indexed pension by applying age-
based factors.
PSS The types of benefits payable are a lifetime indexed pension (indexed in January and July in line
with changes in the CPI) and lump sum. On retirement a lump sum benefit is payable which is
calculated based on the members length of contributory membership, their rate of member
contributions and final average salary (average of a members superannuation salary on their last
three birthdays).
Where a member preserves their benefit in the scheme, generally the members lump sum benefit
at that time is crystallised with the funded component of the benefit accumulating with interest and
the unfunded component accumulating with changes in the CPI, until the benefit becomes payable.
Generally members can convert 50 per cent or more of their lump sum to a lifetime indexed
pension. The indexed pension is calculated by applying age-based factors to the amount of lump
sum to be converted to a pension.
PCSS The benefit payable is a lifetime pension or lump sum depending on length of service and
additional offices held.
Where a retiring member has sufficient parliamentary service to meet the pension qualification
period for a lifetime pension (which is payable as set out in the Act), pension benefits are expressed
as a percentage of the superannuation salary applicable for the PCSS and are indexed by
40
117
movements in that superannuation salary.
A PCSS member who qualifies for a pension can also elect to convert up to half of their benefit to a
lump sum. Lump sum benefits are payable to PCSS members who do not have sufficient
parliamentary service to qualify for a lifetime pension.
G-GPS The benefit payable is a lifetime pension equal to 60% of the salary of the Chief Justice of the High
Court of Australia.
There is no minimum qualification period.
JPS The benefit payable is a lifetime pension equal to 60% of the judicial salary, payable where a judge
has 10 or more years service and is 60 years of age or older.
Provisions are made for part pension (pro-rated based on length of service) where a judge retires
on reaching the maximum retirement age with at least 6 years but less than 10 years service.
FCCJDDS Federal Circuit Court Judges who retire due to permanent disability are provided with a pension
equal to 60% of the salary the Judge would have received if they had not retired, and is payable until
the earlier of the Judge attaining age 70, or his/her death.
In addition, the Judge continues to receive employer superannuation contributions in respect of this
pension until they reach age 65.
Generally, benefits may also be payable to any surviving eligible spouse and children on the death of a member or
pensioner.
Regulatory Framework
The following table details the enabling legislation for each of the individually disclosed defined benefit schemes and
whether the scheme must comply with the requirements of the Superannuation Industry (Supervision) Act 1993, as well
as a number of other Acts.
Period open to new

Scheme Enabling Act Regulatory requirement
members
CSS Superannuation Act 1976 1 July 1976 to 30 June 1990 Compliance with the Superannuation
Industry (Supervision) Act 1993
PSS Superannuation Act 1990 1 July 1990 to 30 June 2005
required for these schemes.
1922
Superannuation Act 1922 1 July 1922 to 30 June 1976
Scheme
Parliamentary Contributory
PCSS Up to 8 October 2004 These schemes are exempt from
Superannuation Act 1948
Superannuation Industry (Supervision)
G-GPS Governor-General Act 1974 To present
Act 1993.
JPS Judges Pensions Act 1968 To present
Federal Circuit Court of
FCCJDDS To present
Australia Act 1999
Governance
The Commonwealth Superannuation Corporation (CSC) was established under the Governance of Australian
Government Superannuation Schemes Act 2011 and is the trustee for the CSS and PSS. CSC is responsible for:
x providing administration services for each scheme;

x management and investment of scheme assets;
x compliance with superannuation taxation and other applicable laws; and
x compliance with relevant legislation including the Governance of Australian Government Superannuation Schemes
Act 2011.
CSC is supported by a custodian and other specialist providers.
The trustee for the PCSS is established by the enabling Act and comprises five trustees, being two Senators, two
members of the House of Representatives and the Finance Minister. Finance acts as adviser to the Trust. The Secretary
of Finance also has certain powers under the Act in relation to administration of the PCSS.
41
118
The enabling Acts for the other defined benefit superannuation schemes confer certain powers to the Secretary of
Finance in relation to administration of each scheme. Day-to-day administration of the schemes is undertaken by
Finance.
C4.3 Risks and assumptions
The schemes are exposed to interest rate risk, investment risk, longevity risk and salary risk. The following pages identify
and explain the amounts reported in these financial statements and detail the principal actuarial assumptions
underpinning each of the major schemes, including an analysis of the sensitivity of changes in these assumptions to the
amounts reported in the financial statements.
Composition of scheme assets
The fair value of scheme assets for CSS and PSS at 30 June 2016 is $19.6 billion (30 June 2015 was $20.1 billion). The
assets are diversified in the following sectors Australian equity 24%; international equity 27%; property 13%; market
neutral funds 10%; objective based funds 5%; credit 7%; sovereign bonds 5% and cash 9%. This includes $465.9 million
(2015: $230.6 million) of Commonwealth Government Bonds
Principal actuarial assumptions applicable to all funds are as follows:

2016 2015
Discount rate 2.7% 3.7%
2.0%pa to June 2019 1.5%pa to June 2018
Expected salary growth rate 4%pa thereafter 4%pa thereafter
+promotional increase +promotional increase
Expected pension increase rate (CPI) 2.5% 2.5%
Other material assumptions

CSS, PSS, and PCSS
Assumptions have been made regarding rates of retirement, death (for active, preserved and pension members),
mortality improvements, invalidity, resignation, retrenchment, retention and take up rates of pensions in the scheme.
Assumptions have also been made for the ages of spouses and rates of member contributions. These assumptions are
consistent to those used within the LTCR 2014.
Membership data as at 30 June 2015 has been rolled forward to 30 June 2016 by making allowance for estimated
investment earnings, contributions, salary increases, benefit payments and benefit accruals, using the actuarial
assumptions from the LTCR where other information is not available. The defined benefit obligation calculated is based
on the rolled forward membership data that was then adjusted to reflect the difference between expected benefit
payments and actual benefit payment to 30 June 2016.
The fair value of scheme assets as at 30 June 2016 (CSS and PSS only) were estimated using the unaudited net
scheme assets available to pay benefits at 31 May 2016 rolled forward to 30 June 2016 with cash flow items provided by
the CSC. An estimate of the actual rate of investment return earned by the scheme during June 2016 was used in
determining the fair value of scheme assets.
Other Schemes G-GPS, JPS and FCCJDDS

Membership data as at 31 May 2016 has been rolled forward to 30 June 2016. Other actuarial assumptions are
consistent to those used within the LTCR.
42
119
Sensitivity analysis for significant actuarial assumptions
The impact of a change in the defined benefit obligation reported as at 30 June 2016 under several scenarios is
presented below. The defined benefit obligation has been recalculated by changing the assumptions as outlined below,
whilst retaining all other assumptions.
Impact on defined benefit obligation
0.5% increase 0.5% decrease
Assumption Movement in $'000 Movement in $'000
CSS PSS Other CSS PSS Other
Discount rate (5,581,290) (11,561,201) (193,590) 6,221,169 13,470,601 217,948
Salary growth rate 124,526 3,227,394 208,891 (164,448) (3,005,041) (187,821)
Pension increase rate 5,472,495 8,542,267 n/a (4,978,762) (7,660,966) n/a
C4.4 Commonwealth Superannuation Scheme (CSS)

Employer productivity contributions
The expected employer productivity contribution for 2017 is $15.3 million (2016 actual $17.3 million).
Maturity profile of defined benefit obligation

The weighted average duration of the defined benefit obligation is 13.6 years for CSS 1976 and 8.0 years for CSS 1922.
Present value of the

defined benefit Fair value of the Net defined benefit
Reconciliation of the obligation scheme assets liability
2016 2015 2016 2015 2016 2015
$'000 $'000 $'000 $'000 $'000 $'000
Value at beginning of the year 80,288,765 75,321,582 3,490,457 3,765,313 76,798,308 71,556,269
Current service cost 192,944 233,174 - - 192,944 233,174
Interest cost 2,898,414 3,005,491 - - 2,898,414 3,005,491
Interest income - - 120,712 141,698 (120,712) (141,698)
Total expense 3,091,358 3,238,665 120,712 141,698 2,970,646 3,096,967
Actual return on scheme assets less interest
income - - (82,340) 201,974 82,340 (201,974)
Actuarial (gains) / losses adjusted in other comprehensive income arising from

Changes in demographic assumptions - 1,849,099 - - - 1,849,099
Changes in financial assumptions 10,546,599 3,400,952 - - 10,546,599 3,400,952
Liability experience (898,899) 425,723 - - (898,899) 425,723
Total other comprehensive income 9,647,700 5,675,774 (82,340) 201,974 9,730,040 5,473,800
Contributions by scheme participants 61,993 69,975 61,993 69,975 - -
Productivity contributions 17,265 20,104 17,265 20,104 - -
Net appropriation from CRF - - 3,374,376 3,328,728 (3,374,376) (3,328,728)
Benefits paid (3,906,514) (4,033,809) (3,906,514) (4,033,809) - -
Taxes, premiums and expenses paid (3,029) (3,526) (3,029) (3,526) - -
Value at end of the year 89,197,538 80,288,765 3,072,920 3,490,457 86,124,618 76,798,308
The fair value of scheme assets relates to investments in the Pooled Superannuation Trust (PST). These are disclosed
as level 2 in the fair value hierarchy, where the net market value is derived from observable inputs (other than quoted
prices) such as prices or derived from prices.
43
120
C4.5 Public Sector Superannuation Scheme (PSS)

Employer productivity contributions
The expected productivity contributions for 2017 is $176.7 million (2016 actual $188.8 million).
Maturity profile of defined benefit obligation

The weighted average duration of the defined benefit obligation is 22.2 years.

2016 2015 2016 2015 2016 2015
$'000 $'000 $'000 $'000 $'000 $'000
Value at beginning of the year 91,382,837 80,212,905 16,583,042 15,351,038 74,799,795 64,861,867
Current service cost 2,864,799 2,761,324 - - 2,864,799 2,761,324
Interest cost 3,351,821 3,255,249 - - 3,351,821 3,255,249
Interest income - - 608,458 616,765 (608,458) (616,765)
Total expense 6,216,620 6,016,573 608,458 616,765 5,608,162 5,399,808
Actual return on scheme assets less
interest income - - (382,259) 1,231,221 382,259 (1,231,221)

Changes in demographic
assumptions - 764,718 - - - 764,718
Changes in financial assumptions 21,274,332 5,288,646 - - 21,274,332 5,288,646
Liability experience (828,781) 26,265 - - (828,781) 26,265
Total other comprehensive income 20,445,551 6,079,629 (382,259) 1,231,221 20,827,810 4,848,408
Contributions by scheme participants 533,697 547,737 533,697 547,737 - -
Productivity contributions 188,761 196,218 188,761 196,218 - -
Net appropriation from CRF - - 623,217 310,288 (623,217) (310,288)
Benefits paid (1,586,172) (1,633,185) (1,586,172) (1,633,185) - -
Taxes, premiums and expenses paid (35,947) (37,040) (35,947) (37,040) - -
Value at end of the year 117,145,347 91,382,837 16,532,797 16,583,042 100,612,550 74,799,795
The fair value of scheme assets relates to investments in the PST. These are disclosed as level 2 in the fair value
hierarchy, where the net market value is derived from observable inputs (other than quoted prices) such as prices or
derived from prices.
44
121
C4.6 Other Schemes

For the purposes of disclosure, the smaller schemes have been grouped under "other":
PCSS G-GPS JPS FCCJDDS

$'000 $'000 $'000 $'000
Expected benefit payments for 2017 43,897 1,518 44,485 452
years years years years
Maturity profile of defined benefit obligation 17.0 10.0 15.3 2.4

2016 2015 2016 2015 2016 2015
$'000 $'000 $'000 $'000 $'000 $'000
Value at beginning of the year 2,280,245 2,243,055 - - 2,280,245 2,243,055
Current service cost 53,685 52,301 - - 53,685 52,301
Interest cost 82,710 91,141 - - 82,710 91,141
Total expense 136,395 143,442 - - 136,395 143,442

Changes in demographic assumptions - 31,223 - - - 31,223
Changes in financial assumptions 317,749 24,477 - - 317,749 24,477
Liability experience (14,349) (77,914) - - (14,349) (77,914)
Total other comprehensive income 303,400 (22,214) - - 303,400 (22,214)
Net appropriation from CRF - - 89,670 84,038 (89,670) (84,038)
Benefits paid (89,670) (84,038) (89,670) (84,038) - -
Value at end of the year 2,630,370 2,280,245 - - 2,630,370 2,280,245
45
122
C5 : Restructuring
Net assets received from or relinquished to another Australian Government entity under a restructuring of administrative
arrangements are adjusted at their book value directly against contributed equity.
Functions assumed or relinquished by Finance were transferred for no consideration.
As part of the Administrative Arrangement Orders issued by the Government on 21 September 2015, the Gov 2.0
function (and associated assets and liabilities) were transferred to the Department of the Prime Minister and Cabinet
(PM&C) and the Digital Transformation Office (DTO). Both transfers were effective 24 June 2016. Unspent annual
appropriation balances have been transferred to the relevant gaining agency via a s75 determination under the PGPA
Act.
The Boardlinks program was also transferred to PM&C on 24 June 2016 following agreement by the Prime Minister on
6 January 2016. No assets or liabilities were relinquished as part of this transfer. Ongoing funding has been redirected as
part of the 2015-16 Portfolio Additional Estimates.
Prior year restructures (including associated assets and liabilities) to Finance included functions assumed from the ARCo
and Albury Wodonga Corporation which became effective on 24 April 2015 and 1 January 2015, respectively.
There were no Administered functions assumed or relinquished by Finance during 2015-16 (2014-15: nil).
Gov 2.0 to Gov 2.0 to ARCo to AWC to

DTO PM&C Finance Finance
2016 2016 2015 2015
$'000 $'000 $'000 $'000
FUNCTIONS ASSUMED
Assets recognised
Financial assets - - 11,508 6,225
Non-financial assets - - - 46,339
Total assets recognised - - 11,508 52,564
Liabilities recognised
Payables - - - 19
Provisions - - 15,029 18
Total liabilities recognised - - 15,029 37
Net assets/(liabilities) recognised - - (3,521) 52,527
FUNCTIONS RELINQUISHED
Assets relinquished
Financial assets 431 24 - -
Non-financial assets 1,003 26 - -
Total assets relinquished 1,434 50 - -
Liabilities relinquished
Payables - - - -
Provisions 431 24 - -
Total liabilities relinquished 431 24 - -
Net assets/(liabilities) relinquished 1,003 26 - -
46
123
Notes to and forming part of the financial statements D. Operating Financial Resources
D. Operating Financial Resources

This section provides further information about major assets and liabilities held or administered by Finance, significant
estimates and judgements made and the management of risk in relation to these items.
D1 : Financial instruments
A financial instrument is a contract between entities that gives rise to a financial asset of one entity and a financial liability
or equity instrument of the other entity. Generally, financial instruments are recognised and derecognised on 'trade date'
which is the date that the risks and rewards of ownership are transferred to the 'buyer'. Finance classifies its financial
instruments in the following categories:
x Loans and receivable assets: includes cash and cash equivalents which are readily convertible to cash, trade
receivables, loans and other receivables with fixed or determinable payments that are not quoted in an active
market.
x Held-to-maturity investments: non-derivative financial assets with fixed or determinable payments and fixed
maturities that an entity has a positive intention and ability to hold to maturity.
x Available-for-sale financial assets: non-derivative financial assets that are either designated in this category or
are not classified in any other category.
x Financial assets/liabilities at FVPL: assets and liabilities held for trading, or portions of an identified portfolio of
financial instruments that are managed together and have a recent actual pattern of short term profit taking.
Derivatives are classified as held for trading unless they are designated as hedges.
x Financial liabilities held at amortised cost: includes suppliers and other payables with a fixed or determinable
amount to be paid that are not quoted in an active market.
All financial assets and liabilities are initially recognised at fair value (usually transaction price). For financial instruments
not at FVPL, transaction costs are also added to the initial value.
Measurement Type of financial instrument Impairment (assessed annually)

At fair value, with all Loans and receivables (short term).
movements captured in the Financial assets/liabilities at FVPL N/A
surplus/(deficit). including any interest paid or earned.
At amortised cost using Loans and receivables (long term). Impairment loss is measured as the
effective interest method, Held-to-maturity investments. difference between the carrying amount
any valuation movement is Financial liabilities measured at and the present value of discounted
recognised in the amortised cost (supplier and other estimated future cash flows. Any asset
surplus/(deficit). payables). impairment is shown as a reduction in
Interest and foreign exchange the value of the asset by way of an
gains/losses on available for sale allowance account, with the loss being
financial assets. recorded in the surplus/(deficit).
At fair value, with any Available-for-sale financial assets, Any difference between the cost less
valuation movement taken with the exception of interest and principal repayments and amortisation,
to equity (reserves). foreign exchange movements. and the current fair value less any
previous impairment loss, is transferred
from equity to the surplus/(deficit).
In the following note disclosure, Departmental and Administered items are included together for presentation
47
124
D1.1 Categories of financial instruments

2016 2015 2016 2015
Note ref $'000 $'000 $'000 $'000
Financial Assets
Cash and cash equivalents
OPA balance H2 - - 1,058,038 1,080,393
Cash held in special accounts F4.1 2,088 1,870 - -
Operating cash balance 1,233 1,604 1,496 4,566
Trade receivables 69,969 28,478 1,390 1,257
Investment funds - loans and receivables C3.2 - - 4,259,529 3,774,248
State and territory government loans - - 145,959 151,814
Accrued revenue 20,344 8,893 1,533 1,921
Total loans and receivables 93,634 40,845 5,467,945 5,014,199
Held-to-maturity investments
Government securities - - 1,472 2,171
Total held-to-maturity investments - - 1,472 2,171
Available-for-sale financial assets
Commonwealth corporate entities - - 400,454 378,108
Total available-for-sale financial assets - - 400,454 378,108
Financial assets designated at FVPL
Investment funds - financial assets at FVPL C3.2 - - 12,494,544 7,626,756
Total financial assets designated at FVPL - - 12,494,544 7,626,756
Total financial assets 93,634 40,845 18,364,415 13,021,234
Financial assets expected to be recovered
No more than 12 months 93,634 40,845 17,822,740 12,484,859
More than 12 months - - 541,675 536,375
Financial Liabilities
Financial liabilities measured at amortised cost
Trade creditors and accruals 53,029 41,211 15,585 12,719
Investment funds - financial liabilities C3.2 - - 21,859 27,286
Total financial liabilities measured at
amortised cost 53,029 41,211 37,444 40,005
Financial liabilities designated at FVPL
Investment funds - derivative liabilities C3.2 - - 26,314 52,283
Finance leases 10,102 - - -
Total financial liabilities designated at FVPL 10,102 - 26,314 52,283
Total financial liabilities 63,131 41,211 63,758 92,288
Financial liabilities expected to be settled
No more than 12 months 55,915 41,211 63,758 92,288
More than 12 months 7,216 - - -
Total financial liabilities 63,131 41,211 63,758 92,288
48
125
Loans to state and territory governments

Concessional loan balances receivable from states and territories are measured at amortised cost and no security is held
for these. Repayments are based on a reducing balance method. The amortised cost differs from fair value which has
been disclosed under Note D1.2.
Investments in Commonwealth Corporate Entities (CCEs)

CCEs are 100% owned by the Commonwealth and managed by Finance on behalf of the Commonwealth. However, as
the CCEs are not controlled by Finance the CCEs have been reported as investments and measured at fair value.
The following are details of all CCEs managed by Finance:
x CSC is a trustee and administrator of Commonwealth superannuation schemes. The value of CSC has been
measured using the net assets (NET) reported in its audited accounts and internal management accounts. A change
in the net assets would result in an equal change in reported fair value. The merger of CSC and Comsuper on
1 July 2015 has not affected the valuation technique for CSC in 2015-16. Further information about CSC is included
in Note C4.
x ASC Pty Ltd (ASC) provides ongoing capability for the through life support of the Collins class submarine and
shipbuilder for the Air Warfare Destroyers. ASC has been measured using reporting date value of the future cash
flows of the company sourced from the 2016-2021 Corporate Plan. These cash flows have been discounted using
the weighted average cost of capital (WACC). The WACC is calculated based on a number of inputs derived from
either professional judgement or observable historical market data of comparable entities. The impact of WACC
changes is included as part of Market Risk analysis in Note D2.1.
D1.2 Fair value information by financial asset class

The following table sets out the fair value, valuation techniques and inputs used for Administered financial instruments.
The techniques used to value financial instruments have not changed during the year.
Financial instruments have been valued using inputs under the following fair value hierarchy:
Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities that Finance can access at
measurement date.
Level 2: observable inputs that are derived from prices in active markets.
Level 3: inputs that are not observable and involve significant judgement.
Fair value measurements at the end of the reporting period

Administered
30 June 30 June
Inputs Valuation 2016 2015
Level used technique $'000 $'000
Financial assets
State and territory government loans 2 N/A Income approach 244,520 239,573
Investments in CCEs 3 NET Cost approach 38,181 6,075
Investments in CCEs 3 WACC Income approach 362,273 372,033
Investment funds - financial assets at FVPL
Investment funds- other investments 1 N/A Market approach 120,380 -
1
Investment funds- interest bearing securities 2 PI Market approach 11,580,840 7,612,254
Investment funds- derivative assets 2 N/A Market approach 94,869 14,502
Investment funds- other investments 2 NET Market approach 880 -
Investment funds- other investments 3 NET Market approach 697,575 -
Total financial assets 13,139,518 8,244,437
Financial liabilities
Investment funds - derivative liabilities 2 N/A Market approach 26,314 52,283
Total financial liabilities 26,314 52,283
1
Price Index (PI) values based on observable market data relating to prices, industry accepted pricing models and
broker/dealer quotes
49
126
Movements of recurring level 3 financial assets
Administered
30 June 30 June
Inputs Valuation 2016 2015
Level used technique $'000 $'000
Opening balance of investments in CCEs 378,108 4,532,827
Total gains/(losses) recognised in net cost of services - (4,135,238)
Total gains/(losses) recognised in other comprehensive income 22,346 (19,481)
Closing balance of investments in CCEs 400,454 378,108
There were no transfers into level 3 during the current financial year.
Opening balance of investment funds -

financial assets at FVPL - -
Purchase 693,734 -
Sales (6,219) -
Total gains/(losses) recognised in other comprehensive income 10,060 -
Closing balance of investment funds - financial assets at FVPL 697,575 -
There were no transfers into level 3 during the current financial year.
50
127
D1.3 Net gains or losses on financial assets

2016 2015 2016 2015
Note ref $'000 $'000 $'000 $'000
Interest revenue earned on:
OPA deposits - - 21,307 23,755
Housing agreements - - 5,582 5,628
Other interest revenue 6 - - 10
Impairment of financial assets (826) (979) (2) (5)
Net gains/(losses) on loans and receivables (820) (979) 37,132 40,159
Held-to-maturity investments
Interest revenue earned on Government Securities - - 120 209
Net gain/(losses) on held-to-maturity
investments - - 120 209
Available-for-sale financial assets

Dividends - - 16,100 258,472
Investment funds - dividends - - 6,147 -
Gain/(loss) recognised in equity - - 22,347 (32,052)
Gains from sale of financial assets
Sale proceeds - - - 5,684,712
Carrying value of asset sold - - - (4,041,113)
Previous revaluation gains recognised in equity - - - 4,041,113
Gain on closure of CCEs - - - 32,609
Net gains/(losses) from available-for-sale
financial assets - - 44,594 5,943,741
Financial assets designated as FVPL

Investment funds - foreign exchange losses C3.1 - - (106,288) (286,713)
Investment funds - interest on term deposits C3.1 - - 98,946 100,019
Investment funds - gains on financial investments C3.1 - - 383,368 494,096
Net gains/(losses) on financial assets
designated as FVPL - - 376,026 307,402
Net gains/(losses) on financial assets (820) (979) 457,872 6,291,511

Interest revenue
Interest revenue is recognised using the effective interest method as set out in AASB 139 Financial Instruments:
Recognition and Measurement except for financial assets that are recognised at FVPL.
Dividends revenue
Dividends are recognised when the right to receive the payment is established. Dividend revenue represents dividends
received from CCEs and dividends paid from the investment funds, for further information on investment funds refer to
Note C3.
Foreign exchange gains/losses
All foreign currency transactions during the period are brought to account using the exchange rate in effect at the date of
the transaction. Foreign currency items at reporting date are translated at the exchange rate existing at reporting date.
Exchange differences are recognised in the surplus/(deficit) in the period in which they arise.
51
128
D2 : Managing financial risk

Finance is generally exposed to a low level of risk in relation to its financial instruments with the exception of the
investment funds which are exposed to a moderate level of risk commensurate with the types of financial instruments
held and the markets in which those instruments are traded. These risks are discussed as part of the investment funds
(Note C3). Non-investment fund risks are discussed below.
D2.1 Market risk
Market risk refers to the risk that a change in market parameters will impact on assets held by Finance. Other than
balances held by the investment funds, investments in CCEs and the OPA which are exposed to interest rate risk and
foreign currency risk, Finance holds basic financial instruments that are not exposed to market risks. The following
table discloses market risks in relation to the OPA and investments in CCEs. Disclosures in relation to the investment
funds are included as part of Note C3.3.
Sensitivity analysis of interest rate risk exposure Effect on

Change in risk Surplus/
2016 Risk variable variable (deficit) Equity
% $'000 $'000
+0.3% 2,878 -
Overnight cash deposits with the RBA Deposit rate
-0.3% (2,878) -
+0.3% - (3,187)
Investments in CCEs Discount rate
-0.3% - 3,235
2015 % $'000 $'000
+0.4% 4,013 -
Overnight cash deposits with the RBA Deposit rate
-0.4% (4,013) -
+0.4% - (3,829)
Investments in CCEs Discount rate
-0.4% - 3,904
D2.2 Liquidity risk
Liquidity risk is the risk that an entity will be unable to pay its debts when they fall due. As Finance is appropriation
funded, the risk of Finance not meeting its obligations associated with financial liabilities is highly remote. Internal policies
and procedures are also in place to ensure there are appropriate resources available to meet obligations. Finance's
credit terms for goods and services are payment within 30 days. Disclosures in relation to the investment funds are
included as part of Note C3.3.
52
129
D2.3 Credit risk
Credit risk is the risk that entities owing debts to Finance will not pay those debts as and when they fall due. Finance is
exposed to a moderate level of credit risk in relation to the investment fund's assets; all other financial assets are
considered to be low risk. Trade and other receivables (excluding State and Territory Government loans) have
standard 30 days terms. Additional disclosures for the investment funds credit risk are included in Note C3.3.
Gross exposure to all credit risk and credit quality of financial assets
2016 2015 2016 2015
Note ref $'000 $'000 $'000 $'000
Financial assets
Not past due nor impaired
Cash and cash equivalents 3,321 3,474 1,059,534 1,084,959
Trade receivables 68,417 26,309 815 972
Investment funds - loans and receivables C3.2 - - 4,259,529 3,774,248
Investment funds - financial assets at FVPL C3.2 - - 12,494,544 7,626,756
Accrued revenue 20,344 8,893 1,533 1,921
Government securities - - 1,472 2,171
Total not past due nor impaired 92,082 38,676 17,963,386 12,642,841
Past due or impaired
Trade receivables 1,552 2,169 575 285
Total past due or impaired 1,552 2,169 575 285
Ageing of financial instrument assets that were past due or impaired
0 to 30 days 756 439 124 85
31 to 60 days 456 1,540 35 158
61 to 90 days 54 64 22 9
90+ days 286 126 394 33
Total past due but not impaired 1,552 2,169 575 285
53
130
D3 : Non-financial assets
Non-financial assets (excluding assets held for sale) are not expected to be sold or realised within the next 12 months.
Finance's asset recognition threshold is $5,000; all purchases under this threshold are expensed in the year of
acquisition, other than when they form part of a group of similar items which are significant in total in which case they are
recognised on a group basis.
Finance has a number of asset classes. The recognition and measurement policy for each is included below:
Asset class
Initial Subsequent Revaluation
(includes work in Fair value measured at:
Recognition Recognition Frequency
progress):
Land Assessed annually by Market selling price.
management to
determine whether it is Market selling price or
Buildings
likely that the carrying discounted cash flows.
Fair value less
Leasehold amount is materially Depreciated replacement
subsequent
improvements different from fair value. cost.
At cost. accumulated
If likely, revaluations
depreciation and
are conducted by
Infrastructure, impairment. Market selling price or
independent valuers
plant and and revaluation depreciated replacement
equipment adjustments are made cost.
on a class basis.
At cost, except
Investment where acquired Market selling price or
Fair value. Annually.
property at nominal cost, discounted cash flows.
then fair value.
Intangibles Cost less
(including accumulated
internally amortisation and
At cost. N/A N/A
developed and accumulated
externally acquired impairment
software) losses.
Revaluation adjustments - Property, infrastructure, plant and equipment
The ARR is an equity account held at asset class level. The ARR cannot be negative, therefore when the values of
assets reduce due to revaluation, the amount in excess of the ARR for that class of asset is posted directly to the
surplus/(deficit). Similarly, an increase can only be recognised in the reserve once the previous decreases recognised in
the surplus/(deficit) have been reversed to surplus/(deficit).
Revaluation adjustments - investment property

Gains or losses arising from changes in the fair value are recognised in the surplus/(deficit) in the year in which they
arise.
Obligations relating to non-financial assets

Obligations relating to the dismantling, removal, remediation, restoration (also referred to as make good) and other
expenditure associated with Finance's non-financial assets are included in the asset measurement when the recognition
requirements for a provision are met. The useful life for the make good component of an asset is estimated from the
date the liability arises to the date the obligation is expected to be met. Details of provisions are disclosed in Note D4.
Depreciation/amortisation
Depreciable assets are written down to their estimated residual values over their estimated useful lives to Finance using
the straight line method of depreciation. Depreciation rates are based on the following useful lives:
Asset class 2016 & 2015 (no change)
Buildings on freehold land 3 to 100 years This policy is reviewed at each reporting
date. If a change is deemed necessary,
Leasehold improvements Lesser of useful life or lease term
these are made in the current and future
Intangibles 3 to 7 years
reporting periods as appropriate.
Infrastructure, plant and equipment 1 to 45 years
54
131
Assets held for sale

Assets held for sale includes properties that have been fully prepared for sale, are being actively marketed at fair value
and are likely to settle within the next 12 months. Also included are properties that are currently under offer or contract
(contract issued or exchanged but not yet settled) as at the end of the reporting period.
D3.1 Property, infrastructure, plant and equipment and intangibles

Departmental
Leasehold Invest- Plant and Intang-
improvement equip- ible
Land Buildings ments property ment assets Total
$000 $000 $000 $000 $000 $000 $000
As at 1 July 2015
Gross book value 396,320 720,135 8,886 580,278 16,826 116,113 1,838,558
Accumulated depreciation,
amortisation and impairment - - (6,299) - (8,565) (48,408) (63,272)
Opening balance as at 1 July 2015 396,320 720,135 2,587 580,278 8,261 67,705 1,775,286
Additions
Purchase or internally developed - 84,255 29,033 3,720 12,339 11,901 141,248
Finance leases - - - - 12,508 - 12,508
Items recognised in equity
Revaluations 24,313 - 170 - - - 24,483
Items recognised in the surplus/(deficit)
Revaluations - (13,225) - 40,436 - - 27,211
Depreciation/amortisation expense - (14,086) (2,105) - (4,289) (6,928) (27,408)
Transfers to assets held for sale (539) - - (125) - - (664)
Reclassification - (2,798) - 2,798 - - -
Disposals
Transfers to agencies/restructuring - (136,253) - - - (841) (137,094)
Write-offs - - (526) - (146) (18) (690)
Other disposals (6,796) (342) - (670) - - (7,808)
Closing balance as at 30 June
2016 413,298 637,686 29,159 626,437 28,673 71,819 1,807,072
Total as at 30 June 2016 represented by
Gross book value
Fair value (gross) 413,298 573,070 27,583 626,437 38,191 - 1,678,579
Internally developed software - - - - - 44,386 44,386
Purchased software - - - - - 14,512 14,512
Work in progress - at fair value - 64,616 1,576 - 2,383 - 68,575
Work in progress - at cost - - - - - 64,262 64,262
amortisation and impairment - - - - (11,901) (51,341) (63,242)
Total as at 30 June 2016 413,298 637,686 29,159 626,437 28,673 71,819 1,807,072
55
132
Departmental
Leasehold Invest- Plant and Intang-
improvement equip- ible
Land Buildings ments property ment assets Total
$000 $000 $000 $000 $000 $000 $000
As at 1 July 2014
Gross book value 336,333 678,276 7,748 649,096 16,585 112,228 1,800,266
Accumulated depreciation and
impairment - - (2,288) - (4,228) (49,208) (55,724)
Opening balance as at 1 July 2014 336,333 678,276 5,460 649,096 12,357 63,020 1,744,542
Additions
Purchase or internally developed 10,377 351,859 1,138 13,120 262 8,038 384,794
Transfers from agencies 45,553 557 - - 5 - 46,115
Revaluations and impairments 16,445 - - - - - 16,445
Revaluations - (11,555) - (43,727) - - (55,282)
Reversal of impairments - - - - - 4,601 4,601
Transfers to assets held for sale (11,734) (310) - - - - (12,044)
Reclassification - 36,681 - (36,681) - - -
Depreciation/amortisation expense - (11,522) (4,011) - (4,338) (6,656) (26,527)
Disposals
Transfers to agencies - other - (321,595) - - - - (321,595)
Write-offs - - - - (25) (1,298) (1,323)
Other disposals (654) (2,256) - (1,530) - - (4,440)
Closing balance as at 30 June
2015 396,320 720,135 2,587 580,278 8,261 67,705 1,775,286
Gross book value
Fair value (gross) 396,320 425,966 8,886 580,278 16,826 - 1,428,276
Internally developed software - - - - - 47,591 47,591
Purchased software - - - - - 14,895 14,895
Work in progress - at fair value - 294,169 - - - - 294,169
Work in progress - at cost - - - - - 53,627 53,627
amortisation and impairment - - (6,299) - (8,565) (48,408) (63,272)
Total as at 30 June 2015 396,320 720,135 2,587 580,278 8,261 67,705 1,775,286
Further information
Domestic property portfolio
Finance is responsible for the management of the Australian Governments domestic non-defence property portfolio and
the construction and delivery of domestic non-defence major capital works projects as directed by the government.
The governments non-defence domestic property portfolio currently has approximately 170 Commonwealth-owned
properties across Australia. These include office buildings, law courts, special purpose facilities, heritage assets, vacant
land and contaminated sites that have been classified as either investment properties, land, buildings, or assets held for
sale.
Other assets
Other assets held by Finance include leasehold improvements, office equipment and information technology assets
required to support the delivery of Finance outcomes.
Finance leases
In 2016, finance leases existed in relation to a new electronic work environment. The leases were non-cancellable and
for a 4 year term. The interest rate implicit in the leases as at 30 June 2016 is 1.99%. The lease assets secured the
56
133
lease liabilities. Finance guaranteed the residual values of all assets leased. The future minimum lease commitments
payable is included as part of commitments disclosures, refer Note G1.
Administered
Leasehold
improve- Plant and Intangible
ments Infrastructure equipment assets Total
$000 $000 $000 $000 $000
As at 1 July 2015
Gross book value 50,399 65,748 16,526 3,193 135,866
Accumulated depreciation, amortisation
and impairment (26,792) - (6,111) (1,161) (34,064)
Opening balance as at 1 July 2015 23,607 65,748 10,415 2,032 101,802
Additions
By purchase 4,221 - 2,556 - 6,777
Revaluations - 3,579 - - 3,579
Depreciation/amortisation expense (9,276) (1,953) (4,465) (504) (16,198)
Disposals
Write-offs (92) - (242) (11) (345)
Other disposals - - (9) - (9)
Closing balance as at 30 June 2016 18,460 67,374 8,255 1,517 95,606
Gross Book Value
Fair value (gross) 52,617 67,374 16,231 - 136,222
Internally developed software - - - 3,110 3,110
Purchased software - - - 72 72
Work in progress - at fair value 11 - 1,237 - 1,248
and impairment (34,168) - (9,213) (1,665) (45,046)
Total as at 30 June 2016 18,460 67,374 8,255 1,517 95,606
57
134
Administered
Leasehold
improve- Plant and Intangible
ments Infrastructure equipment assets Total
$000 $000 $000 $000 $000
As at 1 July 2014
Gross book value 43,129 59,389 16,011 3,153 121,682
and impairment (16,423) - (2,588) (662) (19,673)
Opening balance as at 1 July 2014 26,706 59,389 13,423 2,491 102,009
Additions
By purchase 8,589 - 2,038 40 10,667
Revaluations and impairments - 8,080 - - 8,080
Depreciation/amortisation expense (11,459) (1,721) (4,751) (499) (18,430)
Disposals
Write-offs (229) - (282) - (511)
Other disposals - - (13) - (13)
Closing balance as at 30 June 2015 23,607 65,748 10,415 2,032 101,802
Gross Book Value
Fair value (gross) 49,916 65,748 16,289 - 131,953
Internally developed software - - - 3,110 3,110
Purchased software - - - 72 72
Work in progress - at fair value 483 - 237 - 720
Work in progress - at cost - - - 11 11
and impairment (26,792) - (6,111) (1,161) (34,064)
Total as at 30 June 2015 23,607 65,748 10,415 2,032 101,802
Further information
Administered non-financial assets include the Intra Government Communication Network (ICON), leasehold
improvements and IT assets for electoral and state offices, and other information technology assets to support
Administered outcomes.
58
135
D3.2 Fair value information by non-financial asset class
All non-financial assets with the exception of intangibles are measured at fair value. Other than assets held for sale,
these are all recurring fair value measurements.
Valuation of land, buildings and investment properties

Independent valuations are obtained annually as at 30 June for land, buildings and investment properties. These
valuations include calculations of estimated market cash flows which are adjusted to take into account physical,
economic and external factors relevant to the asset under consideration. In relation to investment properties, allowances
have been factored in for average vacancy periods and costs of establishing a new tenant, as leases become due for
renewal and properties become vacant.
Valuation of leasehold improvements, plant and equipment

The estimated cost to replace the asset has been calculated and then adjusted to take into account obsolescence and
physical deterioration (accumulated depreciation). The obsolescence has been determined based on professional
judgement regarding physical, economic and external factors relevant to the asset under consideration. Leasehold
improvements and plant and equipment for One Canberra Avenue were valued on acquisition in 2016.
Valuation of infrastructure
Finance manages a secure fibre network within the ACT known as the ICON. Replacement cost has been established
based on contemporary technology and construction approaches. Significant judgement concerning the nature of the
physical environment has been made to establish the adopted replacement cost. An independent valuation was
undertaken as at 30 June 2016.
Highest and best use
Within the property portfolio, there are a small number of properties where the highest and best use differs from the
current use, being:
x 7 vacant blocks which have a highest and best use of 'office buildings';
x 1 vacant block which has a highest and best use of 'rural residential'; and
x 1 property with unusable buildings which has a highest and best use of 'community use'.
While the fair values for these properties has been measured in the financial statements using the highest and best use
for each, they are not being utilised at their highest and best use as Finance is not in the business of development.
The following tables set out (by asset class) the valuation technique, inputs used, and the level of the fair value hierarchy
per AASB 13 Fair Value Measurement.
Finance only holds non-financial assets that fall into the following two categories (or levels) of the fair value hierarchy:
x Level 2: observable inputs (other than quoted prices in active markets) are used to calculate the fair value of the
asset; and
x Level 3: inputs used to calculate the fair value are not observable.
59
136
Departmental
Leasehold Invest- Plant and Assets

improvement equip- held for
Technique / inputs used / level Land Buildings ments property ment sale Total
$000 $000 $000 $000 $000 $000 $000
Market Approach / AMT / 2 183,144 6,257 - 63,737 13,069 12,137 278,344
Cost Approach / RCN; CEB / 3 - - 29,159 - 15,604 - 44,763
Cost Approach / RCN / 2 - 220,429 - - - - 220,429
Income Approach / AMT / 2 230,154 411,000 - 562,700 - - 1,203,854
Total assets at fair value 30 June
2016 413,298 637,686 29,159 626,437 28,673 12,137 1,747,390
Market Approach / AMT / 2 189,366 6,616 - 30,278 1,397 11,942 239,599
Cost Approach / RCN; CEB / 3 - - 2,587 - 6,864 - 9,451
Cost Approach / RCN / 2 - 294,169 - - - - 294,169
Income Approach / AMT / 2 206,954 419,350 - 550,000 - - 1,176,304
Total assets at fair value 30 June
2015 396,320 720,135 2,587 580,278 8,261 11,942 1,719,523
Administered
Leasehold Plant and
Technique / inputs used / level improvements Infrastructure equipment Total
$000 $000 $000 $000
Cost Approach / RCN;CEB / 3 18,460 67,374 - 85,834
Market Approach / AMT / 2 - - 6,598 6,598
Cost Approach / AMT;CEB / 3 - - 1,657 1,657
Total assets at fair value 30 June 2016 18,460 67,374 8,255 94,089
Cost Approach / RCN;CEB / 3 23,607 65,748 - 89,355
Market Approach / AMT / 2 - - 8,182 8,182
Cost Approach / AMT;CEB / 3 - - 1,996 1,996
Total assets at fair value 30 June 2015 23,607 65,748 10,178 99,533
Inputs used
Replacement Cost of New Assets (RCN): the amount a market participant would pay to acquire or construct a new
substitute asset of comparable utility.
Consumed Economic Benefits (CEB) obsolescence of assets: physical deterioration, functional or technical
obsolescence and conditions of the economic environment specific to the asset.
Adjusted Market Transactions (AMT): market transactions of comparable assets, adjusted to reflect differences in price
sensitive characteristics.
60
137
Recurring level 3 fair value measurements reconciliation

Departmental - Non-financial assets
Leasehold Plant and
Buildings improvements equipment
2016 2015 2016 2015 2016 2015
$000 $000 $000 $000 $000 $000
Opening balance - 2,300 2,587 5,460 6,864 9,797
Total gains/(losses) recognised in net cost of
services - (2,300) (2,631) (4,011) (3,768) (3,718)
Total gains/(losses) recognised in other
comprehensive income - - 170 - - -
Purchases - - 29,033 1,138 12,508 198
Transfers into level 3 - - - - - 587
Total non-financial assets - - 29,159 2,587 15,604 6,864
Administered - Non-financial assets

Leasehold Plant and
improvements Infrastructure equipment
2016 2015 2016 2015 2016 2015
$000 $000 $000 $000 $000 $000
Opening balance 23,607 26,706 65,748 59,389 1,996 2,164
Total gains/(losses) recognised in net cost of
services (9,368) (11,688) (1,953) (1,721) (924) (1,321)
Total gains/(losses) recognised in other
comprehensive income - - 3,579 8,080 - -
Purchases 4,221 8,589 - - 585 -
Transfers into level 3 - - - - - 1,153
Total non-financial assets 18,460 23,607 67,374 65,748 1,657 1,996
61
138
D4 : Other provisions
Finance recognises a provision when it has a legal or constructive obligation to make a payment, it is probable that
payment will be made and the amount to be paid can be reliably measured.
2016 2015 2016 2015
$'000 $'000 $'000 $'000
Property
Excess lease space 682 1,948 154 126
Provision for remediation costs 24,092 34,690 4,828 5,178
Other
Act of Grace - - 11,533 11,257
Same Sex Relationships Act - - 1,658 1,453
Total other provisions 24,774 36,638 18,173 18,014
Movements of other provisions

Opening balance 36,638 7,588 18,014 18,240
Additional provisions made 356 31,438 1,260 1,162
Amounts used (10,577) (433) (259) (1,439)
Amounts reversed (1,672) (1,981) (1,001) (118)
Unwinding of discount 29 26 159 169
Closing balance 24,774 36,638 18,173 18,014
Other provisions expected to be settled

No more than 12 months 20,126 23,874 975 2,541
More than 12 months 4,648 12,764 17,198 15,473
Total other provisions 24,774 36,638 18,173 18,014
Further information
Remediation
Finance currently has 103 Administered and 4 Departmental agreements for the leasing of premises which have
provisions requiring Finance to restore the premises to their original condition at the conclusion of the lease. The
domestic property portfolio managed by Finance has approximately 170 properties. A small number of these properties
have potential remediation issues identified that are currently the subject of further investigation, a provision has been
raised in relation to remediation of two properties.
Excess lease space

Finance has reviewed the leasing of all premises for surplus space and has recognised a provision in relation to two
premises. Finance has made a provision to reflect the present value of this surplus space.
Act of grace
The Act of grace mechanism is a discretionary power found in section 65 of the PGPA Act, which allows payments to be
made if it is appropriate and a decision maker considers there are special circumstance. In most cases these relate to
pension payments to spouses of former members of the Commonwealth defined benefit superannuation schemes.
Same Sex Relationships Act.

The Same Sex Relationships (Equal Treatment in Commonwealth Laws General Reform) Act 2008 removes
discrimination against same-sex couples and their dependent children from a wide range of Commonwealth laws and
programs. These relate to pension payments to partners of former members of the Commonwealth defined benefit
superannuation schemes.
62
139
Notes to and forming part of the financial statements E. Our People
E. Our People
This section describes the employment and post-employment benefits provided to Finance employees engaged under
the Department of Finance Enterprise Agreement 2015-2018 and Public Service Act 1999.
As part of its Administered operations, Finance facilitates payment of salary and related benefits to staff employed by
current and former Members of Parliament under the Members of Parliament (Staff) Act 1984 (MOP(S) Act) as well as
payment of post-employment benefits for former Parliamentarians and Prime Ministers under relevant legislation.
Superannuation payments made to former Commonwealth employees which are also administered by Finance on behalf
of the Government are not included in the tables below. These are disclosed in Note C4.
In the following note disclosures, Departmental and Administered items are included together for presentation
E1 : Employee expenses
Personal leave
Personal leave is expensed in the year that it is taken.
Superannuation expense
Finances staff are members of the CSS, PSS, PSSap, or other non-government superannuation funds. The CSS and
PSS are defined benefit schemes. The PSSap is a defined contribution scheme. Finance makes employer contributions
to employees' defined benefit schemes at rates determined by an actuary to be sufficient to meet the current cost to the
Government. Finance accounts for these amounts as if they were contributions to defined contribution plans.
2016 2015 2016 2015
$'000 $'000 $'000 $'000
Wages and salaries 122,179 120,057 185,062 171,512
Superannuation expense
Defined contribution plans 14,136 9,567 29,784 25,306
Defined benefit plans 10,297 13,812 6,870 10,093
Leave and other entitlements 20,422 15,623 14,805 16,581
Increase in post-employment benefits liability - - 62,878 9,771
Separations and redundancies 2,377 805 5,995 4,402
Other employee expenses 947 1,353 17,031 16,967
Total employee expenses 170,358 161,217 322,425 254,632
E2 : Employee provisions
Leave provisions
Leave provisions includes provisions for annual leave and long service leave (LSL).

Leave provisions
The provision for LSL for employees engaged under the Public Service Act 1999 has been determined by reference to
the short hand method as set out in the Resource Management Guide No. 125 Commonwealth Entities Financial
Statements Guide. The estimate of the present value of the liability takes into account attrition rates and pay increases
through promotion and inflation.
The provision for LSL for employees engaged under the MOP(S) Act is determined by reference to an actuarial
assessment every three years.
63
140
Post-employment benefits
Finance has made judgements in relation to the valuation of post-employment benefits such as entitlements of former
Prime Ministers, former Senators and Members and Life Gold Pass Holders (LGPH).
Changes to LGPH entitlements were proposed as part of the Parliamentary Entitlements Legislation Amendment Bill
2014 to enact the Governments announcement in the 2014-15 budget (Parliamentary Service Travel Entitlements
reduced funding). After Parliament was dissolved and an election was called this legislation lapsed permanently and is
subject to being reintroduced. Following the Governments 2014-15 budget measure announcement, there has been
lower LGPH expenditure. The actuarial assessment undertaken in 2015-16 factors in this lower expenditure.
2016 2015 2016 2015
$'000 $'000 $'000 $'000
Leave provisions
Long service leave 36,491 33,866 21,397 18,770
Other leave 25,058 24,456 14,068 15,827
Post-employment benefits - - 277,037 214,159
Total employee provisions 61,549 58,322 312,502 248,756
Employee provisions expected to be settled

No more than 12 months 23,649 18,878 34,340 14,087
More than 12 months 37,900 39,444 278,162 234,669
Total employee provisions 61,549 58,322 312,502 248,756
64
141
E3 : Senior management personnel remuneration

The salary ranges for senior management are determined having regard to public sector benchmarks, notably the annual
Australian Public Service remuneration survey. The nature of the work, specific skills and individual contributions to
business outcomes are key factors in setting individual salaries. Senior management personnel at Finance do not
receive performance related payments in undertaking their roles.
The following disclosure has been prepared in accordance with the requirements of the FRR. This relates to personnel
who perform a senior manager role and have the authority and responsibility for planning, directing and controlling the
activities of Finance. As such, it includes all senior executive staff as well as staff who have acted in a senior executive
role for 12 months or more. Staff engaged under the MOP(S) Act do not exercise control over Finances activities and
are therefore excluded.
Departmental
30 June 30 June
2016 2015
$ $
Short-term employee benefits
Salary 14,868,581 13,689,951
Executive vehicle scheme 2,030,391 1,686,942
Other benefits 223,895 330,157
Total short-term employee benefits 17,122,867 15,707,050
Post-employment benefits
Superannuation 3,044,327 2,800,541
Total post-employment benefits 3,044,327 2,800,541
Other long-term benefits
Annual leave 1,384,372 1,395,157
Long service leave 593,650 473,876
Total other long-term benefits 1,978,022 1,869,033
Termination benefits
Separation and redundancies 257,546 526,238
Total termination benefits 257,546 526,238
Total senior management remuneration 22,402,762 20,902,862
Number of senior management personnel included in the table above 97 89
The above table includes staff who have been engaged by Finance for part of the year and therefore more than one
individual may have filled a single position over the course of the year.
65
142
Notes to and forming part of the financial statements F. Funding
F. Funding
Amounts appropriated for Departmental appropriations for the year (adjusted for any formal additions and reductions) are
recognised as revenue from government when Finance gains control of the appropriation. Appropriations receivable is
recognised at the nominal amounts.
Administered appropriations are not recognised as revenue in the Schedule of Comprehensive Income. They are
included in the Administered Reconciliation Schedule once they are recognised which is the date the amounts are drawn
down to Finances bank account for payment against the appropriation for annual and special appropriations or the date
stated in the determination for other Administered amounts.
F1 : Cash flow reconciliation

Cash and cash equivalents include cash on hand, cash held with outsiders, cash in special accounts and demand
deposits in bank accounts with an original maturity of three months or less that are readily convertible to known amounts
of cash and subject to an insignificant risk of changes in value. Cash is recognised at its nominal amount. Cash or cash
equivalent balances that are held for investment purposes are classified as investments.
Reconciliation of cash and cash equivalents as per Statement of Financial Position and Administered Schedule
of Assets and Liabilities to Cash Flow Statement
2016 2015 2016 2015
$'000 $'000 $'000 $'000
Cash and cash equivalents as per
Cash Flow Statement 3,321 3,474 1,059,534 1,084,959
Statement of Financial Position 3,321 3,474 1,059,534 1,084,959
Discrepancy - - - -
Reconciliation of net cost of services to net cash

from/(used by) operating activities
Net cost of services (153,997) (333,044) (7,602,973) (2,508,948)
Revenue from Government 271,315 395,370 - -
Income tax expense (3,843) (5,905) - -
Adjustments for non-cash items

Net losses from sale of assets 468 2,101 - -
Revaluation increment - investment properties (40,436) - - -
Reversal of previous asset impairments - (4,601) - -
Assets first found (917) - - -
Depreciation/amortisation 27,408 26,527 16,198 18,430
Impairment of financial assets 826 - 2 -
Non-financial assets write-down 13,915 56,707 345 511
Unrealised loss/(gains) on fair value investments - - 243,723 (206,296)
Share of surplus/(deficit) of joint ventures (60) 12 - -
Unrealised foreign exchange loss/(gains) - - (93,134) 62,231
Adjustments for non-operating cash items
Gains from sale of assets - - (299,616) (5,684,727)
Closure of CCEs - - - (32,610)
66
143
2016 2015 2016 2015
$'000 $'000 $'000 $'000
Movements in assets and liabilities
Assets
(Increase)/decrease in trade and other receivables (42,317) (137,224) (135) (1,527)
(Increase)/decrease in other financial assets (8,205) (4,146) 38,033 (3,661)
(Increase)/decrease in other non-financial assets (2,722) 2,339 (30) (356)
(Increase)/decrease in reinsurance and other
recoveries (202) 26,723 - -
Liabilities
Increase/(decrease) in trade creditors and accruals (31,250) (7,596) 2,903 (2,346)
Increase/(decrease) in unearned revenue (23,952) 40,155 2,335 -
Increase/(decrease) in outstanding insurance claims 23,582 (15,447) - -
Increase/(decrease) in employee provisions 3,227 3,255 63,746 14,360
Increase/(decrease) in finance lease 10,102 - - -
Increase/(decrease) in lease incentive liabilities 40,060 - - -
Increase/(decrease) in superannuation provisions - - 4,627,940 4,917,163
Increase/(decrease) in other provisions (11,864) 18,673 159 (226)
Increase/(decrease) in other payables (1,445) 304 (6,203) 4,487
Net cash from/(used by) operating activities 69,693 64,203 (3,006,707) (3,423,515)
67
144
F2 : Annual appropriations
F2.1 Annual appropriations ('recoverable GST exclusive')
2016 2015 2016 2015
$'000 $'000 $'000 $'000
Ordinary annual services
Annual Appropriation
Ordinary annual services 271,152 312,954 287,148 286,772
Capital budget - 11,050 4,832 4,810
Section 74 receipts of PGPA Act 58,956 56,909 312 392
1
Section 75 transfers of PGPA Act (837) - - -
Total 329,271 380,913 292,292 291,974
2
Appropriation applied (319,077) (378,766) (296,821) (269,054)
Variance 10,194 2,147 (4,529) 22,920
Other services
Annual appropriation
Equity injection 157,310 277,529 - -
Assets and liabilities - - 1,759 1,556
Total 157,310 277,529 1,759 1,556
2
Appropriation applied (59,374) (234,482) (1,149) (712)
3
Variance 97,936 43,047 610 844
1
Amounts of $0.5 million and $0.3 million were transferred to the DTO and the PM&C under a section 75 determination
following the Administrative Arrangements Order of 21 September 2015. For further information, refer to Note C5.
2
Appropriation applied includes cash payments made from current and prior year appropriations.
3
The variance is due primarily to the delay in the multi-year property and construction projects as well as the Moorebank
project.
The following entities spent money from the CRF on behalf of Finance: CSC, Department of Defence and the
Department of Parliamentary Services (DPS). The money spent has been included in the table above.
Departmental and Administered capital budgets are appropriated through Appropriation Acts (No.1, 3, 5). They form part
of ordinary annual services, and are not separately identified in the Appropriation Acts.
68
145
F2.2 Unspent annual appropriations ('recoverable GST exclusive')

2016 2015 2016 2015
$'000 $'000 $'000 $'000
Appropriation Act (No. 2) 2012-13 90 90 847 847
1
Appropriation Act (No. 2) 2013-14 1,246 4,557 8,153 8,153
Appropriation Act (No. 2) 2014-15 4,900 13,387 451 1,532
Appropriation Act (No. 2) 2015-16 107,508 n/a 1,562 n/a
4
Appropriation Act (No. 4) 2012-13 - - 5,000 5,000
Appropriation Act (No. 4) 2014-15 14,189 14,189 - 24
Appropriation Act (No. 4) 2015-16 2,226 n/a 153 n/a
2,5
Appropriation Act (No. 1) 2013-14 7,064 7,064 480 480
6
Appropriation Act (No. 1) 2014-15 85,240 90,610 174 45,596
3
Appropriation Act (No. 3) 2013-14 4,345 4,345 - -
6
Appropriation Act (No. 3) 2014-15 - - 2,720 2,720
Appropriation Act (No. 1) 2013-14 - Capital - 4,199 - -
6
Appropriation Act (No. 1) 2014-15 - Capital 8,810 11,050 3,166 3,166
Appropriation Act (No. 1) 2015-16 - Capital - n/a 3,189 n/a
Total unspent appropriations 255,095 149,491 63,599 67,518
Reconciliation to appropriations receivable

The above unspent appropriations balance includes quarantined amounts and amounts reported elsewhere in the
financial statements which are not considered to be available to Finance. In order to reconcile to the closing
appropriations receivable balance, unspent amounts considered unavailable to Finance have been removed below:
Departmental
30 June 30 June
2016 2015
$'000 $'000
Total unspent appropriations 255,095 149,491
Adjustments:
Moorebank reallocation and terminated superannuation reforms measure (405) (405)
Strategic Reviews hand back (802) (802)
Cash at bank - 30 June (1,126) (1,000)
Expected GST refund outstanding at year end (1,718) (4,370)
Recorded against special accounts in ledger (73,112) (15,590)
Transfer of function to PM&C (withheld under s. 51 of the PGPA Act) (6,262) -

Other 1,000 -
Closing appropriations receivable balance 172,670 127,324
Other quarantined amounts and adjustments
1. Balance includes quarantines for $0.4 million for Moorebank Unit Relocation and a terminated superannuation reforms
measure.
2. Balance includes a quarantine for $0.8 million for Strategic Reviews hand back.
3. Balance includes cash at bank as at 30 June 2016 of $1.1 million plus expected GST refund of $1.7 million
(2015: cash at bank $1.0 million, GST refund $4.4 million).
4. Balance includes a quarantine for $5.0 million for Moorebank Unit Relocation.
5. Balance includes a quarantine for $0.5 million as a result of a net appropriation decrease at additional estimates.
6. The balances remaining in these appropriations have been withheld under s.51 of the PGPA Act as they are 2014-15
Administered appropriations that are no longer required (the former s.11 process).
69
146
Note: Balances unspent against 2012-13 appropriations will be repealed in 2015-16, 2013-14 will be repealed in 2016-17
and 2014-15 will be repealed in 2017-18.
F3 : Special appropriations
F3.1 Special appropriations ('recoverable GST exclusive')
Appropriation Applied
30 June 30 June
2016 2015
$'000 $'000
Departmental
Medibank Private Sale Act 2006 - (82,416)
Administered
Medibank Private Sale Act 2006 (152) (3,251,710)
Superannuation Act 1922 (90,133) (99,744)
Superannuation Act 1976 (4,210,930) (4,329,795)
Superannuation Act 1990 (1,697,599) (1,732,699)
Governance of Australian Government Superannuation Schemes Act 2011 (634) (112)
Parliamentary Contributory Superannuation Act 1948 (44,038) (40,075)
Parliamentary Superannuation Act 2004 (6,039) (5,774)
Members of Parliament (Life Gold Pass) Act 2002 (788) (2,142)
Parliamentary Entitlements Act 1990 (170,960) (153,951)
Governor-General Act 1974 (1,503) (1,488)
Judges' Pensions Act 1968 (43,602) (42,161)
Federal Circuit Court of Australia Act 1999 (527) (369)
Public Governance, Performance and Accountability Act 2013 (PGPA Act) (894) (393)
Same-Sex Relationships (Equal Treatment in Commonwealth Laws Superannuation)
Act 2008 (59) (58)
Commonwealth of Australia Constitution Act s.66 (Ministers of State Act 1952 s.5) (4,900) (4,787)
Total special appropriations applied (6,272,758) (9,747,674)
Superannuation Act 1976 and Superannuation Act 1990: Payments include amounts that are not an additional cost to the
Australian Government and are funded through a special capital appropriation from a return of superannuation benefit
funded component associated with retirements of scheme members and reimbursements from the emerging cost entities.
Governor-General Act 1974: Administered by Finance and PM&C.
Same-Sex Relationships (Equal Treatment in Commonwealth Laws Superannuation) Act 2008 and Federal Circuit
Court of Australia Act 1999: Administered by Finance and the Attorney Generals Department.
Commonwealth of Australia Constitution Act s.66 (Minister of State Act 1952 s.5): For the 2015-16 reporting period this
appropriation was limited to $5 million and the unspent balance of $0.1 million has lapsed.
CSC drew from the special appropriation authorised by the Superannuation Act 1922, the Superannuation Act 1976, the
Superannuation Act 1990, the Governance of Australian Government Superannuation Schemes Act 2011, PGPA Act,
s.77 and the Same-Sex Relationships (Equal Treatment in Commonwealth Laws - Superannuation) Act 2008. The
money spent has been included in the table above.
The Department of the House of Representatives and the Department of the Senate drew from the special appropriation
authorised by the Parliamentary Superannuation Act 2004 and Commonwealth of Australia Constitution Act s66
[Ministers of State Act 1952] salaries. The money spent has been included in the table above.
The Attorney Generals Department, PM&C, DPS, the Department of the House of Representatives and the Department
of the Senate drew from the special appropriation authorised by the Parliamentary Entitlements Act 1990. The money
spent has been included in the table above.
Fair Work Commission drew from the special appropriation authorised by the Judges Pension Act 1968. The money
spent has been included in the table above.
70
147
No investments were made under s.58 of PGPA Act however investments were made for the investment funds (under
the Nation-Building Funds Act 2008 s.32 & s.151), the MRFF (under the Medical Research Future Fund Act 2015 s.37)
and the DCAF (under the DisabilityCare Australia Fund Act 2013 s.27). Refer to note C3 for further information.
F3.2 Disclose by agent in relation to annual and special appropriations ('recoverable GST exclusive')
Appropriations applied
30 June 30 June
2016 2015
Relationship $'000 $'000
Attorney-General's Department
Total receipts 418 414
Solicitors-General pension payments
Total payments (418) (414)
Australian Secret Intelligence Organisation
(ASIO)
Total receipts Commonwealth New Building Project 2,852 12,116
Total payments undertaken on behalf of ASIO (2,852) (12,116)
Department of the Prime Minister and
Cabinet (PM&C)
Total receipts - 10,401
COMCAR services provided for G20
Total payments - (10,401)
Department of the Treasury
Total receipts - 2,130
COMCAR services provided for G20
Total payments - (2,130)
F3.3 Compliance with statutory conditions for payments from the consolidated revenue fund
Section 83 of the Constitution provides that no amount may be paid out of the CRF except under an appropriation made
by law. Finance in its central agency role provided information to all agencies in 2011 regarding the need for specific risk
assessments in relation to section 83. It is impossible to fully remove the potential for section 83 breaches for all
payments. In the vast majority of cases Finance relies on information provided by its clients to pay appropriate
entitlements.
Ministerial and Parliamentary Services (MPS) special appropriation payments under the Parliamentary Entitlements Act
1990 (PE Act):
Finance has identified risks in relation to MPS special appropriation payments under the PE Act. For the current financial
year 39 breaches were identified. These amounted to $27,739 of which $26,554 has been recovered to date.
Legislation to remediate the risk of breaching section 83 of the Constitution was before Parliament when the House of
Representatives and the Senate were dissolved prior to the election. The legislation then lapsed, subject to being
reintroduced by a new Parliament. In the interim, breaches will continue to be reported.
71
148
F4 : Special accounts
A special account is an appropriation mechanism that notionally sets aside an amount within the CRF to be expended for
specific purposes. The type of appropriation provided by a special account is a special appropriation. The appropriation
mechanism remains available until the special account is abolished. The amount of appropriation that may be drawn
from the CRF, via a special account, is limited to the balance of the particular special account.
Finance has been appropriated under the PGPA Act, s78 (Departmental) and s80 (Administered) for expenditure up to
the balance of each of the following special accounts.
F4.1 Departmental special accounts

Comcover Property BSSA CPCSA Total
30 June 30 June 30 June 30 June 30 June
2016 2016 2016 2016 2016
$'000 $'000 $'000 $'000 $'000
Opening cash held by special
accounts 1,531 309 - 30 1,870
Opening appropriations receivable 379,042 218,686 5,794 110,820 714,342
Balance brought forward 380,573 218,995 5,794 110,850 716,212
Appropriations credited 10,151 139,052 - 3,412 152,615
Other receipts 127,586 89,400 645 129,956 347,587
Payments made (83,767) (208,153) (583) (195,491) (487,994)
Balance carried forward 434,543 239,294 5,856 48,727 728,420
Balance represented by
Cash 1,478 198 - 412 2,088
Appropriations receivable 433,065 239,096 5,856 48,315 726,332
Special account balance 434,543 239,294 5,856 48,727 728,420
Property
Comcover (ceased) Property BSSA CPCSA Total
2015 2015 2015 2015 2015 2015
$'000 $'000 $'000 $'000 $'000 $'000
Opening cash held by special
accounts 1,526 6,048 - - 198 7,772
Opening appropriations receivable 359,147 274,338 - 687 48,180 682,352
Balance brought forward 360,673 280,386 - 687 48,378 690,124
Appropriations credited 9,111 109,570 47,090 - - 165,771
Other receipts 117,691 21,551 402,338 5,501 179,323 726,404
Payments made (106,902) (411,507) (230,433) (394) (116,851) (866,087)
Balance carried forward 380,573 - 218,995 5,794 110,850 716,212
Balance represented by
Cash 1,531 - 309 - 30 1,870
Appropriations receivable 379,042 - 218,686 5,794 110,820 714,342
Special account balance 380,573 - 218,995 5,794 110,850 716,212
Comcover Special Account
Establishing Instrument: Financial Management and Accountability Determination 2009/05 Comcover Special Account
Establishment 2009. Purpose: For receipts and expenditure relating to the promotion of risk management to General
Government Sector entities; to administer the Commonwealths general insurance fund; and to make payments in
respect of any uninsured superannuation liability claims against an insured Commonwealth entity. This account is non-
interest bearing. The special account determination sunsets on 1 April 2019.
Property Special Account 2014

Establishing Instrument: PGPA Act (Property Special Account 2014 Establishment) Determination 04. Purpose:
Facilitates the management of the Commonwealth's non-Defence domestic property portfolio. This account is non-
interest bearing. The special account determination sunsets on 1 April 2025.
72
149
Property Special Account 2000 (ceased)

Appropriation: Public Governance, Performance and Accountability Act 2013, s78. Establishing Instrument: Financial
Management and Accountability (Special Accounts) Determination 2000/15. Purpose: Facilitates the management of the
Commonwealth's non-Defence domestic property portfolio. This account is non-interest bearing. The special account
ceased 17 October 2014.
Business Services Special Account (BSSA)

Establishing Instrument: Financial Management and Accountability Determination 2006/64 Business Services Special
Account Establishment 2006. Purpose: For expenditure relating to sentencing and disposing of records associated with
the former Department of Administrative Services (DAS), managing and settling any personal injury and other legal
claims arising from activities associated with the former DAS, and to conclude any other activity arising from the former
DAS. This account is non-interest bearing. The special account determination sunsets on 1 April 2017.
Coordinated Procurement Contracting Special Account (CPCSA)

Establishing Instrument: Financial Management and Accountability Determination 2008/08 Coordinated Procurement
Contracting Special Account Establishment 2008. Purpose: For expenditure relating to the Whole of Australian
Government (WoAG) contract for providing fleet management and leasing services, centralised government advertising
activities, and other co-coordinated procurement contracts for the benefit of government entities. The account is non-
interest bearing. The special account determination sunsets on 1 October 2018.
F4.2 Administered special accounts

BAF EIF HHF DCAF MRFF SOETM Total
2016 2016 2016 2016 2016 2016 2016
$'000 $'000 $'000 $'000 $'000 $'000 $'000
Balance brought
forward - - - - - - -
Increase
Contribution from
Government - - - 3,449,500 3,149,351 - 6,598,851
Investment realised 3,444,840 4,018,017 1,859,077 4,272,238 2,663,546 - 16,257,718
Other receipts 154,968 170,789 61,815 120,383 18,228 - 526,183
Total increase 3,599,808 4,188,806 1,920,892 7,842,121 5,831,125 - 23,382,752
Purchase of investment (3,589,595) (4,129,347) (401,400) (7,839,207) (5,829,632) (21,789,181)
Other payments (10,213) (59,459) (1,519,492) (2,914) (1,493) - (1,593,571)
Total decrease (3,599,808) (4,188,806) (1,920,892) (7,842,121) (5,831,125) - (23,382,752)
Balance carried forward - - - - - - -
BAF EIF HHF DCAF MRFF SOETM Total

2015 2015 2015 2015 2015 2015 2015
$'000 $'000 $'000 $'000 $'000 $'000 $'000
Balance brought
forward - - - - - - -
Increase
Contribution from
Government - - - 2,486,251 - - 2,486,251
Investment realised 4,264,370 3,739,724 3,017,160 919,383 - - 11,940,637
Other receipts 73,072 46,666 38,313 5,255 - 4 163,310
Total increase 4,337,442 3,786,390 3,055,473 3,410,889 - 4 14,590,198
Purchase of investment (4,149,056) 3,564,383 (2,339,200) (3,410,445) - - (6,334,318)
Other payments (188,386) (7,350,773) (716,273) (444) - (4) (8,255,880)
Total decrease (4,337,442) (3,786,390) (3,055,473) (3,410,889) - (4) (14,590,198)
Balance carried forward - - - - - - -
73
150
Building Australia Fund (BAF) Special Account

Establishing Instrument: Nation-building Funds Act 2008, s13. Purpose: For making payments in relation to transport
infrastructure, communications infrastructure (including the National Broadband Network), energy infrastructure and
water infrastructure. The Board may invest amounts standing to the credit of the special account in any financial assets,
although the special account itself is non-interest bearing.
Education Investment Fund (EIF) Special Account

Establishing Instrument: Nation-building Funds Act 2008, s132. Purpose: For making payments in relation to higher
education infrastructure, research infrastructure, vocational education and training infrastructure, and any other eligible
education infrastructure. The Board may invest amounts standing to the credit of the special account in any financial
assets, although the special account itself is non-interest bearing.
Health and Hospitals Fund (HHF) Special Account

Establishing Instrument: Nation-building Funds Act 2008, s215. Purpose: For making payments in relation to health
infrastructure. The Board may invest amounts standing to the credit of the special account in any financial assets,
although the special account itself is non-interest bearing. This special account ceased 29 October 2015.
DisabilityCare Australia Fund (DCAF) Special Account

Establishing Instrument: DisabilityCare Australia Fund Act 2013, s11. Purpose: For making reimbursements to State,
Territory and Commonwealth Governments in relation to expenditure incurred under the National Disability Insurance
Scheme Act 2013. The Board may invest amounts standing to the credit of the special account in any financial assets,
although the special account itself is non-interest bearing.
Medical Research Future Fund (MRFF)

Establishing instrument: Medical Research Future Fund Act 2015, s14. Purpose: To transfer amounts to the Council of
Australian Governments Reform Fund in accordance with section 20 for the purpose of making grants of financial
assistance to the States and Territories; to transfer amounts to the MRFF Health Special Account in accordance with
section 25 for the purpose of making grants to bodies referred to in section 24; and to make grants to CCEs in
accordance with section 29. The Board may invest amounts standing to the credit of the special account in any financial
assets, although the special account itself is non-interest bearing.
Services for Other Entities and Trust Moneys (SOETM) Special Account Department of Finance
Establishing Instrument: Financial Management and Accountability (Establishment of SOETM Special Account
Finance) Determination 2012/08. Purpose: For the receipt of moneys temporarily held in trust for other persons other
than the Commonwealth and for the payment to a person other than the Commonwealth, on behalf of the Government
that are not PGPA Act agencies, or as permitted by an Act. The account is non-interest bearing. This special account
was established on 26 June 2012 and the determination will sunset on 1 October 2022.
The following Special Account has not been used during the current and comparative years:
Lands Acquisition Special Account

Establishing Instrument: Lands Acquisition Act 1989, s89A. Purpose: For the holding of amounts of compensation due to
be paid to a person in respect of compulsory acquisition of interests in land where the amount of compensation payable
to the person has been determined under the Lands Acquisition Act 1989 but after three months has lapsed the amount
remains unpaid due to default or delay on the part of the claimant. To date there have not been any transactions through
this account.
74
151
Notes to and forming part of the financial statements G. Managing Other Uncertainties
G. Managing Other Uncertainties

This section includes additional information about commitments and other events that may have an impact on future
financials. These amounts have not been recorded elsewhere in the statements.
In the following disclosures, Departmental and Administered items are included together for presentation
G1 : Commitments
Commitments are defined as:
a) Intentions to create liabilities or assets for the receiving entity, as evidenced by undertakings or agreements to
make/obtain future payments to/from other entities; and
b) Are executory contracts that are not recognised under AASB 137 Provisions, Contingent Liabilities and
Contingent Assets (i.e. not onerous); but
c) Do not include future appropriations.
Commitments are disclosed per requirements of AASB 117 Leases, AASB 138 Intangible Assets and AASB 116
Property, Plant and Equipment.
2016 2015 2016 2015
$'000 $'000 $'000 $'000
BY TYPE
Commitments receivable
1
Domestic property portfolio - rent receivable 954,950 660,371 - -
2
Subleasing - rent receivable 12,587 - - -
Net GST recoverable 46,869 51,978 12,325 13,714
Total commitments receivable 1,014,406 712,349 12,325 13,714
3
Commitments payable
Capital commitments
4
Land and buildings 107,539 158,874 500 -
Intangible assets development 10,350 23,249 - -
Infrastructure, plant & equipment 2,661 - 144 -
Total capital commitments 120,550 182,123 644 -
Other commitments
5
Operating leases 386,288 389,639 135,168 152,191
6
Finance leases 11,433 - - -
Net GST payable 86,814 60,034 - -
Total other commitments 484,535 449,673 135,168 152,191
Total commitments payable 605,085 631,796 135,812 152,191
Net commitments by type 409,321 80,553 (123,487) (138,477)
BY MATURITY
Commitments receivable
Within 1 year 81,338 68,680 3,385 3,038
Between 1 to 5 years 365,459 254,260 6,886 6,884
More than 5 years 567,609 389,409 2,054 3,792
Total commitments receivable 1,014,406 712,349 12,325 13,714
Commitments payable
Capital commitments
Within 1 year 105,387 120,239 644 -
Between 1 to 5 years 15,163 61,884 - -
Total capital commitments 120,550 182,123 644 -
Operating lease commitments
Within 1 year 21,134 12,193 36,820 34,677
Between 1 to 5 years 102,450 81,234 75,749 75,802
More than 5 years 262,704 296,212 22,599 41,712
Total operating lease commitments 386,288 389,639 135,168 152,191
Finance lease commitments
Within 1 year 3,267 - - -
Between 1 to 5 years 8,166 - - -
Total finance lease commitments 11,433 - - -
75
152
2016 2015 2016 2015
$'000 $'000 $'000 $'000
Other commitments
Within 1 year 6,191 5,149 - -
Between 1 to 5 years 31,334 21,931 - -
More than 5 years 49,289 32,954 - -
Total other commitments 86,814 60,034 - -
Total commitments payable 605,085 631,796 135,812 152,191
Net commitments by maturity 409,321 80,553 (123,487) (138,477)
1
Domestic property portfolio rent receivable includes rent to be received from the Australian Governments non-Defence
Commonwealth owned property portfolio within Australia.
2
Subleasing rent receivable arrangements exist with the Department of Human Services for One Canberra Avenue.
3
Commitments relating to goods and services contracts for current and prior years are not required to be disclosed.
4
Land and buildings mainly represent outstanding contractual commitments for construction projects.
5
Operating leases mainly comprise office accommodation for Finance business operations (Departmental) and
electorate offices for parliamentarians, Commonwealth Parliament Offices and COMCAR depots (Administered).
6
Finance leases represent outstanding contractual commitments relating to IT equipment and software.
G2 : Contingencies
Contingent liabilities and contingent assets are not recognised in the Statement of Financial Position but are reported in
the notes. They may arise from uncertainty as to the existence of a liability or asset, or represent a liability or an asset in
respect of which the amount cannot be reliably measured. Contingent assets are disclosed when settlement is probable
but not virtually certain, and contingent liabilities are recognised when settlement is greater than remote.
Quantifiable contingent assets and liabilities
Finance does not have any quantifiable contingent assets or liabilities.
Unquantifiable contingent assets
Finance does not have any unquantifiable contingent assets.
Unquantifiable contingent liabilities
High Court challenges to changes made to Parliamentary Superannuation and Life Gold Pass.
The High Court challenge, by Cunningham and others was heard on 16 June 2016. This case concerns the
superannuation and Life Gold Pass entitlements of former members of the Australian Parliament. The key legal issue is
whether changes to these entitlements amounted to an acquisition of property for the purposes of s 51(xxxi) of the
Constitution. The Court reserved its decision and the judgment is outstanding. As the outcome of the case is unknown,
the usual litigation contingencies remain and are unquantifiable.
Other litigated claims
In the normal course of business, Finance has non-insurance claims that are subject to litigation. At the date of this
report, Finance does not consider the outcome of any such litigation is likely to have a material affect on its operations or
financial position.
General remediation costs
The Australian Government domestic property portfolio managed by Finance has approximately 170 properties. A small
number of properties currently or previously part of the non-Defence Government property portfolio have potential
remediation issues identified that are currently the subject of further investigation.
Except to the extent a provision for remediation costs has been raised in Note D4, to date the majority of these properties
have not had a provision recognised as neither the conditions for legal or constructive obligation have been met nor is
there a reliable estimate of the obligation available at 30 June 2016.
76
153
Current construction projects
There is a potential liability for costs relating to delays or rectification of some projects.
Comcover insurance claims
In the normal course of business, Finance has outstanding insurance claims that are subject to litigation. At the date of
this report, Finance does not consider the outcome of any such claims is likely to have a material affect on its operations
or financial position.
G3 : Subsequent events
There were no subsequent events after the reporting period.
77
154
Notes to and forming part of the financial statements H. Other Information
H. Other Information
This section includes additional financial information which is considered relevant to assist users in understanding the
financial statements.
H1 : Investments in joint ventures

Departmental
2016 2015
$'000 $'000
Thurgoona Industrial Estate (Finance owns 86.33%) 3,079 3,950
Baranduda Industrial Park (Finance owns 77.34%) 1,819 2,162
Total investments in joint ventures 4,898 6,112
Cash distributions (Equity returns) received from joint ventures: $1.4m (2014-15: nil)
Investments in joint ventures are not expected to be sold or fully realised within the next 12 months.
Finance's investment in joint ventures is accounted for using the 'Equity Method' which means the investment asset is
carried at cost adjusted for post-acquisition changes in Finance's share of net assets of the joint ventures. Finance has
equity in two joint arrangements, one with the City of Albury (Thurgoona Industrial Estate) and one with the City of
Wodonga (Baranduda Industrial Park). These joint arrangements involve the development and sale of industrial lots in
separate precincts situated within the local government boundaries of Albury and Wodonga.
Equity contributions involve land, estate development costs, rates, maintenance and selling costs. Development works
have been completed and finished lots are currently being marketed.
The terms of each agreement provide that the "rights, duties, obligations, and liabilities of the parties shall be several and
not joint nor joint and several". This means that the arrangements are not partnerships.
H2 : Other policy and disclosures

This section of the report provides additional information in relation to line items in the primary statements that do not
have specific disclosures in the preceding notes. They are additional disclosures directed at the interests of particular
users and their needs.
Centralised procurement
Finance develops and manages procurement arrangements for common goods and services to maximise market
benefits for Commonwealth entities. The largest arrangements are VSA and IBNCS.
VSA
Finance manages the Volume Sourcing Agreement II and a number of custom support agreements with Microsoft to
provide software licensing and custom support benefits to related Commonwealth entities. The arrangement is funded on
a user pays basis and includes an administration fee.
IBNCS
Finance manages telecommunications services to related Commonwealth entities. This arrangement is funded on a user
pays basis. These services include Network Carriage Services, Virtual Connection Management Services, Internet
Protocol Carriage Services and Major Internet Connection Services.
Other activities
Finance manages other centralised procurement arrangements including WoAG travel, fleet monitoring, campaign
advertising and major office machines. The results of centralised procurement services are shown at Note C1 and the
Coordinated Procurement Contracting Special Account is detailed at Note F4.1.
Minimum lease payments and lease incentives
Operating lease payments are expensed on a straight line basis, which is representative of the pattern of benefits
derived from the leased assets.
Lease incentives liabilities and assets are recognised in the same manner but as a reduction of rental expense and
revenue, respectively, over the lease term. Lease incentive liabilities relate to incentives received by Finance in relation
78
155
Notes to and forming part of the financial statements H. Other Information
to properties it occupies as tenant. Lease incentive assets have been issued to tenants occupying properties which are
part of Finances domestic property portfolio and for other subleasing arrangements.
Competitive neutrality (including income tax expense)
Finance is exempt from all forms of taxation except Fringe Benefits Tax and GST.
Finance applies the Australian Government's Competitive Neutrality Policy Statement (June 1996) to properties in the
portfolio that are leased and managed in a competitive environment. The taxation equivalent regime is applied as a
competitive neutrality charge (shown as competitive neutrality and income tax expense in the Statement of
Comprehensive Income) and a notional payment is calculated quarterly to cover indirect taxes such as payroll tax,
council rates, stamp duty and land tax and income tax based upon accounting income; as if they have been applied to
these properties. These amounts have been paid or are payable by Finance to the OPA.
Rental income
Rental income includes rent received from tenants occupying buildings that are part of the Australian Governments non-
Defence property portfolio. It also includes revenue received from sub-leasing arrangements with other entities for non-
Commonwealth owned properties.
Resources received free of charge
Resources free of charge are recognised as revenue when, and only when, a fair value can be reliably determined and
the services would be purchased if they had not been donated. Use of the resources is recognised as an expense.
Resources received free of charge are recorded as either revenue or gains depending on their nature. Resources
received free of charge includes Australian National Audit Office audit fees of $0.7 million (2015: $0.7million) for
Finances financial statements and $1.2 million (2015: $0.7 million) for WoAG financial statements.
Unearned revenue
Mainly relates to amounts received in advance for goods and services yet to be rendered by Finance to related
Commonwealth entities for centralised procurement and domestic property and construction activities. Revenues are
recognised in relation to these items when the relevant good or service has been provided.
Return of equity - special accounts
A provision is raised annually for the estimated balance of surplus funds to be returned to the OPA in the following year
for the Property Special Account. A provision of $65.3 million has been raised for the estimated surplus funds and gross
divestment proceeds for the 2015-16 financial year. The variance to budget for the cash return is due to the estimate
being based on the 2013-14 return.
Prior Year Adjustments
During 2015-16, Property Special Account surplus funds of $55.1 million and gross divestment proceeds of $2.3 million
were returned to CRF for the 2014-15 financial year. Initially a provision of $18.7 million was raised in 2014-15 for the
cash return, but changes in estimates and assumptions used have resulted in an adjustment to the 2014-15 comparative
to reflect the revised amount of $55.1m, with the corresponding amount taken to distributions to owners (equity). There
was no impact on the Statement of Comprehensive Income.
Official Public Account (OPA)
Collections of revenue to the Government are transferred to the OPA which is administered by Finance. Conversely,
cash is drawn from the OPA to make payments under Parliamentary appropriation on behalf of the Government. These
transfers to and from the OPA are adjustments to the administered cash held by Finance on behalf of the Government
and reported as such in the Administered Cash Flow Statement and the Administered Reconciliation Schedule. OPA
balances are disclosed in the Administered Schedule of Assets and Liabilities under cash and cash equivalents and the
overnight cash balance payable. Given the fluctuation in daily balances, no budget is prepared for these items. The OPA
balance is disclosed at Note D1.1.
79
157
Appendices
A: Relationship between our

purposes and our outcomes
B: Workforce statistics
C: Work health and safety
D: Advertising and market research
E: Entity resources and expenses by
outcomes
F: Correction of material errors in the
201415 annual report
158
A: Relationship between our purposes

and our outcomes
Table 10: Mapping of Finances Portfolio Budget Statements 201516 to
Corporate Plan 201516
Outcome statements
Outcome 1: Support Outcome 2: Support Outcome 3:
sustainable Australian an efficient and high- Support for
Government finances performing public Parliamentarians and
sector others as required
by the Australian
Government
Budget and Program 1.1:
financial advice, Budget and financial
management management
and reporting
Governance Program 2.1: Public
sector governance
Program 2.3: Property
and construction
Program 2.4: Insurance
and risk management
Program 2.7:
Australian Government
Purposes
investment funds
Transformation Program 2.2:
Transforming
government
Services Program 2.1: Public Program 3.1:
sector governance Ministerial and
Program 2.3: Property parliamentary
and construction services
Program 2.4: Insurance

and risk management
Program 2.5:
Procurement services
Program 2.6: Public
sector superannuation
159
B: Workforce statistics
Staff profile (by headcount)

Table 11: Ongoing, non-ongoing and casual staff numbers, by substantive
classification and gender, at 30 June 2015 and 30 June 2016
APS classification
Employment SES 13 EL 2 APS 6 EL 1
APS 15 Total
type Gender 2015 2016 2015 2016 2015 2016 2015 2016 2015 2016
Female 27 29 93 100 358 373 313 303 791 805
Ongoing Male 47 45 114 107 314 332 181 166 656 650
Subtotal 74 74 207 207 672 705 494 469 1,447 1,455
Female 2 4 3 5 5 9
Non-
Male 3 2 3 5 8 5
ongoing
Subtotal 3 4 4 6 10 13 14
Female 61 62 61 62
Casual Male 1 283 280 283 281
Subtotal 1 344 342 344 343
Total 74 74 210 208 676 709 844 821 1,804 1,812
Table 12: Ongoing and non-ongoing Aboriginal and Torres Strait Islander
staff numbers, at 30 June 2015 and 30 June 2016
Staff numbers
Employment type 2015 2016
Ongoing 20 24
Non-ongoing
Total 20 24
Table 13: Ongoing, non-ongoing and casual staff numbers by attendance

type, at 30 June 2015 and 30 June 2016
Attendance type
Employment Full-time Part-time Casual Total
type 2015 2016 2015 2016 2015 2016 2015 2016
Ongoing 1,278 1,290 169 165 1,447 1,455
Non-ongoing 9 11 4 3 13 14
Casual 344 343 344 343
Total 1,287 1,301 173 168 344 343 1,804 1,812
160
Table 14: Ongoing, non-ongoing and casual staff numbers by location, at

30 June 2015 and 30 June 2016
Employment type
Ongoing Non-ongoing Casual Total
Location
2015 2016 2015 2016 2015 2016 2015 2016
ACTa 1,402 1,413 13 13 198 191 1,613 1,617
NSW 12 12 50 54 62 66
NT 1 2 2 2 3 4
QLD 8 8 28 27 36 35
SA 5 3 16 15 21 18
TAS 2 1 1 3 3 5 5
VIC 12 11 34 36 46 47
WA 5 5 13 15 18 20
Total 1,447 1,455 13 14 344 343 1,804 1,812
a T
hese figures include two employees deployed to Indonesia and Solomon Islands as at 30 June 2016
and six employees deployed to Indonesia, Papua New Guinea and Solomon Islands as at 30 June 2015.
Remuneration
Table 15: Available salary ranges (excluding casuals), at 30 June 2016
APS classification Minimum ($) Maximum ($)
SES 13 160,502 N/Aa
EL 2 (non-SES) 123,831 154,259
APS 6 EL 1 (non-SES) 78,357 130,853
APS 15 (non-SES) 44,361 79,917
a The Secretary, in consultation with Finances Executive Board, determines the salaries of all SES staff.
Note: These figures reflect base salary only and exclude superannuation and other benefits.
Table 16: Actual salary ranges (excluding casuals), at 30 June 2016

APS classification Minimum ($) Maximum ($)
SES 13 160,502 330,263
EL 2 (non-SES) 123,831 154,259
APS 6 EL 1 (non-SES) 78,357 136,354
APS 15 (non-SES) 44,361 84,754
Note: These figures reflect base salary only and exclude superannuation and other benefits.
161
C: Work health and safety

This appendix outlines Finances work health and safety performance in accordance with
Part 4 of the Work Health and Safety Act 2011 (WHS Act).
Finance recognises that as part of its aspiration to be a leader in the public sector, it must
exemplify good work health and safety (WHS) practices. This includes having responsive
and flexible safety management systems. To support the new ways of working under its new
operating model, Finance initiated a major review of its WHS arrangements in 201516.
The first step in the review involved consulting with the departments health and safety
representatives on the current WHS arrangements. They were also asked for their views on
the work groups and the health and safety representatives within those groups, as well as on
the functions of the Work Health and Safety Committee. The goal of the review is to identify
any gaps in Finances management of WHS risks and recommend any changes required to
ensure Finance continues to meet its obligations under the WHS Act. The review is expected
to be completed in 201617.
Initiatives
Finance employees
In 201516, Finance undertook the following activities to meet its obligations under the
WHS Act:
consulting with staff on WHS issues, particularly in response to changes in accommodation
with the relocation to One Canberra Avenue
providing WHS training and information to all staff, including training focused on dealing with
change in the workplace
conducting hazard inspections and workstation assessments
providing a confidential counselling service through the employee assistance program
promoting a healthy lifestyle by offering access to on-site gymnasium facilities and influenza
vaccinations.
MOP(S) Act employees

Finance shares the duty of care for the health and safety of people employed under the
Members of Parliament (Staff) Act 1984 (MOP(S) Act) with the employing Senator or Member
(or former prime minister). Other Commonwealth agencies may also have duties under the
WHS Act with respect to MOP(S) Act employees.
In 201516, Finances key WHS activities for MOP(S) Act employees included:
consulting with health and safety representatives through the Work Health and Safety
Committee
providing WHS information and training through the Ministerial and Parliamentary Services
website and face-to-face training sessions delivered by Comcare
162
providing a confidential counselling service through the employee assistance program

conducting workstation and worksite assessments
administering a work health and safety site officer program to support hazard and incident
notification and access to first aid in Senators and Members workplaces.
Comcare premium
Finances 201516 workers compensation premium was 1.05 per cent of its payroll (for both
Finance and MOP(S) Act employees). This premium rate is unchanged from the previous year.
Notifiable incidents
Finance employees
Between 1 July 2015 and 30 June 2016, Finance reported three incidents involving Finance
employees to Comcare under section 38 of WHS Act. Two of these reported incidents were
classified as serious injuries under the WHS Act and the third was classified as a dangerous
incident.

Between 1 July 2015 and 30 June 2016, Finance reported seven incidents involving MOP(S)
Act employees to Comcare under section 38 of the WHS Act. Each of the reported incidents
was classified as a dangerous incident under the WHS Act.
Investigations and notices
Finance-managed workplaces
Under the WHS Act, the department is required to provide statistics of any investigations or
notices given at the workplaces it manages. No investigations were conducted and no notices
were given during 201516.

Between 1 July 2015 and 30 June 2016 there were no investigations commenced, and
Finance did not receive any notices issued by Comcare under section 155 of the WHS Act
requesting information in connection with MOP(S) Act employees.
163
D: Advertising and market research

Under section 311A of the Commonwealth Electoral Act 1918, Finance is required to disclose
payments of advertising and market research.
During 201516, Finances total expenditure for advertising and market research over the
reporting threshold of $12,700 (GST inclusive) was $229,309.93 (see Table 17).
Finance manages whole-of-government campaign and non-campaign advertising contracts.
Finance does not report expenditures under these contracts because the agency responsible
for the campaign reports them.
Finance did not undertake any advertising campaigns during 201516.
Table 17: Advertising and market research expenditure, 201516

Expenditure
Organisation Purpose ($, GST inclusive)
Market research organisations
Hall and Partners Open Graduate market testing research
Mind Pty Ltd 76,472.00
Portland Group To provide market analysis/benchmarking
advice to assist with determining the approach
for the whole of Australian Government major
office machines panel arrangements 62,505.00
Media advertising organisations
Dentsu Mitchell Media Information notices, bulk recruitment
Australia Pty Ltd advertising and office relocation advertising
($28,558.14 for Outcome 3) 90,332.93
Total payments over the reporting threshold 229,309.93
164
E: Entity resources and expenses by

outcomes
Table 18: Entity resource statement, 201516
Actual available Balance
appropriations Payments remaining
for 201516 made 201516 201516
$000 $000 $000
(A) (B) (A) (B)
Ordinary annual servicesa
Departmental appropriation 444,850 319,077 125,773
Section 75 transfer (837) (837)
Total 444,013 319,077 124,936
Administered expenses
Outcome 2 14,052 11,995
Outcome 3 b
278,240 284,825
Total 292,292 296,820
Total ordinary annual services [1] 736,305 615,897
Other services c
Departmental non-operating
Equity injections 189,533 59,374 130,159
Total 189,533 59,374 130,159
Administered non-operating
Administered assets and liabilities 17,315 1,149
Total 17,315 1,149
Total other services [2] 206,848 60,523
Special appropriations limited by
criteria/entitlement
Medibank Private Sale Act 2006 152
Superannuation Act 1922 90,133
Superannuation Act 1976 4,210,930
Superannuation Act 1990 1,697,599
Governance of Australian
Government Superannuation
Schemes Act 2011 634
Parliamentary Contributory
Superannuation Act 1948 44,038
165
Table 18: Entity resource statement, 201516 continued

Actual available Balance
appropriations Payments remaining
for 201516 made 201516 201516
$000 $000 $000
(A) (B) (A) (B)
Parliamentary Superannuation Act
2004 6,039
Members of Parliament (Life Gold
Pass) Act 2002 788
Parliamentary Entitlements Act 1990 170,960
Governor-General Act 1974 1,503
Judges Pensions Act 1968 43,602
Federal Circuit Court of Australia Act
1999 527
Public Governance, Performance and
Accountability Act 2013 894
Same-Sex Relationships (Equal
Treatment in Commonwealth Laws
Superannuation) Act 2008 59
Special appropriations limited by
amount
Commonwealth of Australia
Constitution Act (section 66) 4,900
Total special appropriations [3] 6,272,758
Special accounts
Opening balance 716,212
Appropriation receiptsd 152,615
Non-appropriation receipts to special
accounts 23,730,339
Payments made 23,870,746
Closing balance 728,420
Total special accounts [4] 24,599,166 23,870,746
Total resourcing and payments
[1+2+3+4] 25,542,319 30,819,924
Less appropriations drawn from
annual or special appropriations
above and credited to special
accounts 152,615
Total net resourcing and payments 25,389,704 30,819,924
166
Notes to Table 18
a A
ppropriation Act (No. 1) 201516 and Appropriation Act (No. 3) 201516. The amount includes prior
year departmental appropriations and section 74 retained revenue receipts.
b Includes an amount of $4.832 million in 201516 for the administered capital budget. For accounting
purposes, this amount has been designated as contributions by owners.
c A
ppropriation Act (No. 2) 201516 and Appropriation Act (No. 4) 201516.
d A ppropriation receipts from Appropriation Act (No. 1) and Appropriation Act (No. 2) included above.
Table 19: Expenses for Outcome 1, 201516

Outcome 1: Support sustainable Australian Actual
Government finances through providing high Budgeta expenses Variation
quality policy advice and operational support to the 201516 201516 201516
government and Commonwealth entities to maintain $000 $000 $000
effective and efficient use of public resources (A) (B) (A) (B)
Program 1.1: Budget and financial management
Departmental expenses
Departmental appropriationb
Budget advice 54,527 54,643 (116)
Financial reporting 27,204 25,220 1,984
Expenses not requiring appropriation in the
budget year 3,771 5,083 (1,312)
Total for Program 1.1 85,502 84,946 556
Outcome 1 totals by appropriation type
Departmental appropriationb 81,731 79,863 1,868
budget year 3,771 5,083 (1,312)
Total expenses for Outcome 1 85,502 84,946 556
201415 201516
Average staffing level (number)c 409 423
a F
ull-year budget, including any subsequent adjustment made to the 201516 Budget at Additional
Estimates.
b D
epartmental appropriation combines ordinary annual services (Appropriation Act Nos. 1 and 3) and
retained revenue receipts under section 74 of the Public Governance, Performance and Accountability
Act 2013.
c R
epresents actual average staffing levels for 201415 and 201516. Figures for both years are
presented under the outcome structure that applied in 201516.
167

Outcome 2: Support an efficient and high-performing Actual
public sector through providing leadership to Budgeta expenses Variation
Commonwealth entities in ongoing improvements to 201516 201516 201516
public sector governance, including through systems, $000 $000 $000
frameworks, policy, advice and service delivery (A) (B) (A) (B)
Program 2.1: Public Sector Governance
Ordinary annual services (Appropriation Act
Nos. 1 and 3)
Grant in aidAustralian Institute of Policy and
Science 35 35
Grant in aidChifley Research Centre 223 223
Grant in aidGreen Institute 84 84
Grant in aidMenzies Research Centre 223 223
Grant in aidPage Research Centre 84 84
Grant in aidRoyal Humane Society of Australasia 26 26
Grant in aidRSPCA Australia Inc 35 35
Financial framework 19,898 18,149 1,749
Procurement framework 11,652 11,662 (10)
Government shareholder oversight 6,917 5,946 971
Special financial claims 2,391 2,171 220
Special accounts
Business Services Special Account 271 (271)
budget year 1,796 1,973 (177)
Total for Program 2.1 43,364 40,882 2,482
Program 2.2: Transforming government
Transforming the public sector 35,746 30,093 5,653
Digital transformation agenda 25,976 30,874 (4,898)
budget year 4,017 1,945 2,072
168
Table 20: Expenses for Outcome 2, 201516 continued

Program 2.3: Property and construction
Special accounts
Property Special Account 2014c 126,983 87,949 39,034
Program 2.4: Insurance and risk management
Special accounts
Comcover Special Accountd 144,035 106,210 37,825
Program 2.5: Procurement services
Special accounts
Coordinated Procurement Contracting
Special Account 123,296 201,780 (78,484)
Total for Program 2.5 123,296 201,780 (78,484)
Program 2.6: Public sector superannuation
Nos. 1 and 3)
Act of grace nominal interests 2,393 1,896 497
Compensation and legal expenses 500 56 444
Superannuation administration costs 10,448 10,451 (3)
Federal Circuit Court of Australia Act 1999 709 704 5
Governance of Australian Government
Superannuation Schemes Act 2011 1,400 634 766
Governor-General Act 1974 774 773 1
Judges' Pensions Act 1968 85,200 86,562 (1,362)
Parliamentary Contributory Superannuation
Act 1948 48,432 48,356 76
Parliamentary Superannuation Act 2004 5,887 6,039 (152)
Same-Sex Relationships (Equal Treatment in
Commonwealth LawsSuperannuation) Act 2008 53 264 (211)
169

Superannuation Act 1922 26,848 27,006 (158)
Superannuation Act 1976 3,038,167 2,943,640 94,527
Superannuation Act 1990 5,582,787 5,608,162 (25,375)
Public sector superannuation 5,275 4,743 532
budget year 262 254 8
Total for Program 2.6 8,809,135 8,739,540 69,595
Program 2.7: Australian Government
investment funds
Special accounts
DisabilityCare Australia Fund Special Account 24,668 (24,668)
Asset Recycling Fund Special Account 1,786 1,786
Medical Research Future Fund Special Account 16,750 17,946 (1,196)
Building Australia Fund Special Account 9,542 18,632 (9,090)
Education Investment Fund Special Account 54,575 90,063 (35,488)
Health and Hospitals Fund Special Account 55,304 87,728 (32,424)
Nos. 1 and 3) 14,051 13,113 938
Special appropriations 8,790,257 8,722,140 68,117
Special accounts 137,957 239,037 (101,080)
Departmental appropriationb 107,855 103,638 4,217
Special accounts 394,314 396,210 (1,896)
budget year 6,075 4,172 1,903
Total expenses for Outcome 2 9,450,509 9,478,310 (27,801)
201415 201516
Average staffing level (number)e 651 643
170
Notes to Table 20
a F
Estimates.
b D
Act 2013.
c F
igure includes an elimination adjustment for rent charged to Finance and excludes income tax
expense.
d Figure includes an elimination adjustment for insurance charged to Finance.
e R

Actual
Outcome 3: Support for Parliamentarians and others Budgeta expenses Variation
as required by the Australian Government through the 201516 201516 201516
delivery of, and advice on, entitlements and targeted $000 $000 $000
assistance (A) (B) (A) (B)
Program 3.1: Ministerial and Parliamentary Services
Nos. 1 and 3)
Electorate and ministerial support costs 272,205 351,471 (79,266)
Australian Political Exchange Program 889 356 533
Commonwealth of Australia Constitution Act
(section 66) 4,936 4,900 36
Members of Parliament (Life Gold Pass) Act 2002 1,120 (6,914) 8,034
Parliamentary Entitlements Act 1990 175,064 169,237 5,827
budget year 9,755 16,199 (6,444)
Services to Senators, Members and their staff 42,719 42,477 242
Car-with-driver and associated transport services 1,326 1,835 (509)
budget year 2,649 4,756 (2,107)
171

Actual
Outcome 3: Support for Parliamentarians and others Budgeta expenses Variation
as required by the Australian Government through the 201516 201516 201516
delivery of, and advice on, entitlements and targeted $000 $000 $000
assistance (A) (B) (A) (B)
Nos. 1 and 3) 273,094 351,827 (78,733)
Special appropriations 181,120 167,223 13,897
budget year 9,755 16,199 (6,444)
Departmental appropriationb 44,045 44,312 (267)
budget year 2,649 4,756 (2,107)
Total expenses for Outcome 3 510,663 584,317 (73,654)
201415 201516
Average staffing level (number)c 218 229
a F
Estimates.
b D
Act 2013.
c R
172
F: Correction of material errors in the

201415 annual report
On page 80 in Table 15, Environmental performance summary, 201314 to 201415, under:
air travel, the total number of flights for 201415 was reported as 3,410; it should have been
7,006
total distance of flights (kilometres), the distance for 201415 was reported as 6,362,303;
it should have been 6,565,470.
173
Abbreviations and acronyms

APS Australian Public Service
CSC Commonwealth Superannuation Corporation
EL executive level
FBO Final Budget Outcome
Finance Department of Finance
FTE full-time equivalent
HHF Health and Hospitals Fund
ICT information and communications technology
LGBTI lesbian, gay, bisexual, transgender and intersex
LPG liquefied petroleum gas
MOP(S) Act Members of Parliament (Staff) Act 1984
MRFF Medical Research Future Fund
MYEFO Mid-Year Economic and Fiscal Outlook
NAIDOC National Aborigines and Islanders Day Observance Committee
OECD Organisation for Economic Co-operation and Development
PGPA Act Public Governance, Performance and Accountability Act 2013
SES senior executive service
WHS Act Work Health and Safety Act 2011
174
Glossary
Term Meaning
accountable Instructions issued to manage the affairs of an entity to promote the
authority instructions efficient, effective, economical and ethical use of Commonwealth
resources.
act of grace payment A voluntary payment made by the Commonwealth to an individual
or other body in special circumstances when a government entitys
conduct or Commonwealth legislation or policy has resulted in an
unintended, inequitable, anomalous or otherwise unacceptable result.
Act of grace payments must be authorised by the Finance Minister or a
delegate under section 65 of the Public Governance, Performance and
Accountability Act 2013 (PGPA Act). An act of grace payment is used
when the obligation to the applicant is moral, rather than legal.
administered items Items that are usually managed by an entity on behalf of the
government. Entities do not have control over these items, which are
normally related to activities governed by eligibility rules and conditions
established by legislation (for example, grants, subsidies and benefit
payments).
appropriation Public monies the parliament authorises the Australian Government to
withdraw from the Consolidated Revenue Fund for a specified purpose.
AusTender The central web-based facility for the publication of Australian
Government procurement information, including business
opportunities, annual procurement plans and procurement contracts
awarded.
budget Sets out the fiscal and economic outlook for Australia, and includes
expenditure and revenue estimates for the current financial year,
the budget year, and three forward financial years. It identifies the
governments social and political priorities and how they will be
achieved. The budget is usually announced in May each year.
carbon dioxide One tonne of carbon dioxide equivalent would fill the average-sized
equivalent (CO2-e) three-bedroom house.
central agencies The Department of the Prime Minister and Cabinet, the Department of
the Treasury and the Department of Finance.
Central Budget The ICT system used to manage the flow of financial information
Management System between Finance and Commonwealth entities to facilitate cash and
appropriations management, the preparation of budget documentation
and financial reporting.
Charter of Budget Provides a legislative framework for the conduct and reporting of fiscal
Honesty Act 1998 policy, government decisions and Commonwealth financial statements.
It aims to improve discipline, transparency and accountability in the
conduct of fiscal policy.
Comcover The Australian Governments self-managed general insurance fund.
175
Term Meaning
co-mingled recycling A process that allows for mixed recyclables to be disposed of in a
single container. Recyclable materials include glass, plastic, metal and
aluminium cans and containers.
Commonwealth Rules representing the government policy framework under which
Procurement Rules Commonwealth entities undertake their own procurement in line with
both Australias international obligations and good practice. They
enable agencies to design processes that are robust and transparent
and instill confidence in the Australian Governments procurement.
Commonwealth Establishes the principles for the efficient, effective, economical and
Property ethical use of property resources and applies to property leased and
Management owned by non-corporate Commonwealth entities.
Framework
consolidated Statements that present the whole-of-government financial results
financial statements inclusive of all Australian Governmentcontrolled bodies, including
bodies outside the general government sector, such as Australia Post
and the Reserve Bank of Australia.
Consolidated Consists of all revenues and moneys raised or received by the
Revenue Fund executive government of the Commonwealth. The fund is self-
executing in nature, which means that all money received by the
Commonwealth automatically forms part of the fund.
consultancy services Services delivered under a contract for services, distinguished by the
nature of the work performed. A consultant is a person or organisation
providing professional, independent and expert advice or services.
Typically the term is used to describe the application of expert skills to
investigate or diagnose a defined issue or problem; carry out defined
research, reviews or evaluations; or provide independent advice,
information or creative solutions to assist an entity in management
decision-making.
contestability Competition in public sector functions to improve both efficiency and
effectiveness in the delivery of government objectives.
costings or cost An assessment of the financial impact of a proposed policy change.
estimates Commonwealth entities are required to provide costings for any new
policy proposals and seek Cabinet endorsement. Finance must agree
to these costings before they can be incorporated into a submission
for Cabinet.
enterprise agreement An employment agreement made directly between an employer and
employees.
Expenditure Review The ministerial committee responsible for examining all proposals
Committee of against the governments overall fiscal strategy, advising Cabinet on
Cabinet budget spending priorities and initiating reviews of individual ongoing
programs.
fiscal policy The governments approach to taxation and spending, both of which
can affect the economy.
176
Term Meaning
fraud Dishonestly obtaining a benefit, or causing a loss, by deception or
other means. Accountable authorities of Commonwealth entities must
take all reasonable measures to prevent, detect and deal with fraud in
accordance with section 10 of the Public Governance, Performance
and Accountability Rule 2014.
full-time equivalent The average number of effective FTE employees in an entity. Part-time
(FTE) employees are converted to full-time equivalents.
Future Fund A government fund established for accumulating assets to offset future
Australian Government superannuation liabilities.
government business A Commonwealth entity or Commonwealth company that is prescribed
enterprise as a government business enterprise by the rules of the PGPA Act, and
so may operate as a profit-making business.
headcount The actual number of employees employed by the department.
measure A policy or decision of the government that affects revenues, expenses
or capital.
Mid-Year Economic Provides an update of the governments budget estimates by
and Fiscal Outlook examining expenses and revenues in the year to date, as well as
provisions for new decisions that have been taken since the budget to
allow assessment of the governments fiscal performance against the
fiscal strategy statement. The Treasurer is required to publicly release
and table in parliament a mid-year economic and fiscal outlook report
by the end of January each year, or within six months after the budget,
whichever is later.
non-ongoing staff A person engaged as an employee under subsection 22(2)(b) or (c) of
member the Public Service Act 1999.
ongoing staff A person engaged as an ongoing employee under subsection 22(2)(a)
member of the Public Service Act 1999.
outcome The governments objectives in each portfolio area. Outcomes
are desired results, impacts or consequences for the Australian
community influenced by the actions of the Australian Government.
Actual outcomes are the results or impacts actually achieved.
performance Evidence about performance that is collected and used systematically.
information It relates to appropriateness, effectiveness and efficiency and the
extent to which an outcome can be attributed to an intervention.
Portfolio Budget Statements that inform parliamentarians and the public of the
Statements proposed allocation of resources to government outcomes. They
also assist the Senate standing committees with their examination of
the governments budget. Portfolio Budget Statements are tabled in
parliament on budget night and published as budget-related papers.
potable water Water that is suitable for human consumption.
programs Actions taken by the government to deliver stated outcomes.
177
Term Meaning
purposes In the context of the PGPA Act, purposes include the objectives,
functions or role of the entity. Finances purposes are established in the
Corporate Plan 201516.
red tape A colloquial term for unnecessary regulation.
resource Governs how the Commonwealth public sector uses and manages
management public resources. The PGPA Act is the cornerstone of the framework.
framework
risk management The systematic application of management through policies,
procedures and practices to clearly identify, analyse, evaluate, treat
and monitor risks associated with those opportunities. Risk is broadly
defined as the effect of uncertainty on objectives or the impacts of
unforeseen events or undesirable outcomes.
rules In the context of the PGPA Act, legislative instruments made by
the Finance Minister under sections 101 to 105 of the PGPA Act
prescribing matters:
required or permitted by the PGPA Act or
necessary or convenient to be prescribed for carrying out or giving
effect to the PGPA Act.
178
List of requirements
The requirements for non-corporate Commonwealth entities annual reports are prescribed
by Subdivision A of Division 3A of the Public Governance, Performance and Accountability
Rule 2014. The subdivision is made for section 46(3) of the Public Governance, Performance
and Accountability Act 2013. The requirements for content to be included in entities annual
reports were approved on behalf of the parliament by the Joint Committee of Public Accounts
and Audit in May 2016.
The following table shows where the information specified by the requirements can be found
in this report.
Part of report Description Page

Letter of transmittal
A copy of the letter of transmittal signed and dated by v
accountable authority on date final text approved, with statement
that the report has been prepared in accordance with section 46
of the Act and any enabling legislation that specifies additional
requirements in relation to the annual report
Aids to access
Table of contents vii
Alphabetical index 1837
Glossary of abbreviations and acronyms 173
List of requirements 17882
Details of contact officer iv
Electronic address of report iv
Review by accountable authority
A review by the accountable authority of the entity 24
Overview of the entity
A description of the role and functions of the entity 7
A description of the organisational structure of the entity 912
A description of the outcomes and programs administered by the 78
entity
A description of the purposes of the entity as included in the 7
corporate plan
An outline of the structure of the portfolio of the entity 6
Where the outcomes and programs administered by the entity N/A
differ from any Portfolio Budget Statement, Portfolio Additional
Estimates Statement or other portfolio estimates statement
that was prepared for the entity for the period, include details of
variation and reasons for change
179

Report on the performance of the entity
Annual performance statement in accordance with 2944
paragraph 39(1)(b) of the Act and section 16F of the Rule
Report on financial performance
A discussion and analysis of the entitys financial performance 4, 6670
A table summarising the total resources and total payments of the 1646
entity
If there may be significant changes in the financial results during N/A
or after the previous or current reporting period, information on
those changes, including the cause of any operating loss of the
entity; how the entity has responded to the loss and the actions
that have been taken in relation to the loss; and any matter or
circumstances that it can reasonably be anticipated will have
a significant impact on the entitys future operation or financial
results
Management and accountability
Information on compliance with section 10 (fraud systems) v, 52
A certification by accountable authority that fraud risk v
assessments and fraud control plans have been prepared
A certification by accountable authority that appropriate v
mechanisms for preventing, detecting incidents of, investigating
or otherwise dealing with, and recording or reporting fraud that
meet the specific needs of the entity are in place
A certification by accountable authority that all reasonable v
measures have been taken to deal appropriately with fraud relating
to the entity
An outline of structures and processes in place for the entity to 4752
implement principles and objectives of corporate governance
A statement of significant issues reported to minister under 70
paragraph 19(1)(e) of the Act that relates to non-compliance with
finance law and action taken to remedy non-compliance
External scrutiny
Information on the most significant developments in external 536
scrutiny and the entitys response to the scrutiny
Information on judicial decisions and decisions of administrative 53, 556
tribunals and by the Australian Information Commissioner that
may have a significant effect on the operations of the entity
180

Information on any reports on operations of the entity by the 53, 545
Auditor-General (other than report under section 43 of the Act), a
parliamentary committee, or the Commonwealth Ombudsman
Information on any capability reviews on the entity that were N/A
released during the period
Management of human resources
An assessment of the entitys effectiveness in managing and 5761
developing employees to achieve entity objectives
Statistics on the entitys APS employees on an ongoing and non- 15960
ongoing basis, including the following:
statistics on staffing classification level
statistics on full-time employees
statistics on part-time employees
statistics on gender
statistics on staff location
statistics on employees who identify as Indigenous
Information on any enterprise agreements, individual flexibility 5960
arrangements, Australian workplace agreements, common law
contracts and determinations under subsection 24(1) of the
Public Service Act 1999
Information on the number of SES and non-SES employees 60
covered by agreements etc. identified in paragraph 17AG(4)(c) of
the Rule
The salary ranges available for APS employees by classification 160
level
A description of non-salary benefits provided to employees 60
Information on the number of employees at each classification 60
level who received performance pay
Information on aggregate amounts of performance pay at each 60
classification level
Information on the average amount of performance payment, and 60
range of such payments, at each classification level
Information on aggregate amount of performance payments 60
Asset management
An assessment of effectiveness of assets management where 70
asset management is a significant part of the entitys activities
Purchasing
An assessment of entity performance against the Commonwealth 701
Procurement Rules
181

Consultants
A summary statement detailing the number of new contracts 71
engaging consultants entered into during the period; the total
actual expenditure on all new consultancy contracts entered
into during the period (inclusive of GST); the number of ongoing
consultancy contracts that were entered into during a previous
reporting period; and the total actual expenditure in the reporting
year on the ongoing consultancy contracts (inclusive of GST)
A statement that During [reporting period], [specified number] 71
new consultancy contracts were entered into involving total actual
expenditure of $[specified million]. In addition, [specified number]
ongoing consultancy contracts were active during the period,
involving total actual expenditure of $[specified million].
A summary of the policies and procedures for selecting and 71
engaging consultants and the main categories of purposes for
which consultants were selected and engaged
A statement that Annual reports contain information about 71
actual expenditure on contracts for consultancies. Information
on the value of contracts and consultancies is available on the
AusTender website.
Australian National Audit Office access clauses
If an entity entered into a contract with a value of more than 71
$100,000 (inclusive of GST) and the contract did not provide the
Auditor-General with access to the contractors premises, the
report must include the name of the contractor, the purpose and
value of the contract, and the reason why a clause allowing access
was not included in the contract
Exempt contracts
If an entity entered into a contract or there is a standing offer with 71
a value greater than $10,000 (inclusive of GST) which has been
exempted from being published in AusTender because it would
disclose exempt matters under the Freedom of Information Act,
the annual report must include a statement that the contract or
standing offer has been exempted, and the value of the contract
or standing offer, to the extent that doing so does not disclose the
exempt matters
Small business
A statement that [Name of entity] supports small business 71
participation in the Commonwealth Government procurement
market. Small and medium enterprises and small enterprise
participation statistics are available on the Department of
Finances website.
182

An outline of the ways in which the procurement practices of the 71
entity support small and medium enterprises
If the entity is considered by the department administered by 71
the Finance Minister as material in nature, a statement that
[Name of entity] recognises the importance of ensuring that
small businesses are paid on time. The results of the survey of
Australian Government payments to small business are available
on the Treasurys website.
Financial statements
Inclusion of the annual financial statements in accordance with 75155
subsection 43(4) of the Act
Other mandatory information
If the entity conducted advertising campaigns, a statement that N/A
During [reporting period], the [name of entity] conducted the
following advertising campaigns: [name of advertising campaigns
undertaken]. Further information on those advertising campaigns
is available at [address of entitys website] and in the reports on
Australian Government advertising prepared by the Department
of Finance. Those reports are available on the Department of
Finances website.
If the entity did not conduct advertising campaigns, a statement 163
to that effect
A statement that Information on grants awarded by [name of 70
entity] during [reporting period] is available at [address of entitys
website].
Outline of mechanisms of disability reporting, including reference 58
to website for further information
Website reference to where the entitys Information Publication 56
Scheme statement pursuant to Part II of the Freedom of
Information Act can be found
Correction of material errors in previous annual report 172
Information required by other legislation 625,
1612,
163
183
Index
A B
Aboriginal and Torres Strait Islander Staff Network, budget (federal). see also Mid-Year Economic and
58 Fiscal Outlook
act of grace requests, 40 201617
administered activities, 68 advice, 15, 34
Administrative Arrangements Order, 5 delivery, 3, 1516, 17
Administrative Decisions (Judicial Review) Act 1977, fiscal and budget strategies, 16
40 performance, 30, 31
advertising structural savings proposals, 16
expenditure, 19, 40 budget estimates, 30
Finance, 163 budget and financial advice, management and
air travel services, 27, 39 reporting (purpose), 7, 43
Air Warfare Destroyer Program, 14, 21, 37 activities, 15
AlburyWodonga Development Corporation, 21, 36 highlights, 1517
An Independent Parliamentary Entitlements System: results, 2931
Review, 42 summary of performance, 15
annual performance statements, 14, 20, 2944 Budget and Financial Reporting, 2, 10, 17
annual report business continuity management, 51
corrections to 201415 report, 172 Business Enabling Services, 10, 51
list of requirements, 17882 business groups, 10, 11
APS employee census, 4, 58 Business Investment Sub-Committee, 48
APS ICT workforce, 26, 39
APS LearnHub, 61 C
APS Statistical Bulletin, 58 capital works, 36
ASC Pty Ltd, 6, 14, 212, 37 cash requirements, government, 31
ASIC Registry, 22 Central Advertising System, 19
aspiration statement, 7, 43 Central Budget Management System, 15, 17, 30
asset management, 70 champions of diversity, 58
asset write-downs, 66 Charter of Budget Honesty Act 1998, 3, 14, 15, 16
Audit Committee, 49, 51 Chief Financial Officer, 48, 49, 77
Auditor-General, 31, 53, 71 Clean Energy Finance Corporation, 19
audits, 49, 51 Clean Energy Innovation Fund, 19
AusTender, 33, 71 Coaching in Finance Program, 61
Australian Accounting Standards, 74 COMCAR
Australian Bureau of Statistics, 24 environmental strategy, 63
Australian Electoral Commission, 6 performance, 42
Australian Government investment funds, 7, 18, 33, Comcare, 25, 161, 162
36, 68 Comcover, 40, 41
Australian Government Office Occupancy Report, 34 Commercial and Government Services, 11
Australian Human Rights Commission, 55 Commonwealth companies, 6, 18, 19
Australian Human Rights Commission Act 1986, 55 Commonwealth Disability Strategy, 58
Australian Information Commissioner, 53 Commonwealth Electoral Act 1918, 19, 163
Australian National Audit Office, 4, 20, 49, 51, 66, 74, Commonwealth Fraud Control Framework, 52
756 Commonwealth Law Courts, Sydney, 3, 26
reports, 53 Commonwealth of Australia v Davis Samuel Pty Ltd
Australian Network on Disability, 58 & Ors, 55
Australian Public Service Commission, 19, 52 Commonwealth Ombudsman, 40, 53
Australian Rail Track Corporation, 14, 22, 37 Commonwealth performance framework, 2, 14, 20,
Australian Renewable Energy Agency, 19 43, 44
Australian River Co. Limited, 5 inquiry into development of, 54
Australian Submarine Corporation. see ASC Pty Ltd Commonwealth Procurement Rules, 70, 71
184
Commonwealth Property Disposals Policy, 35 employment performance, 57

Commonwealth Property Management Framework, energy use (office), 62
34, 35 enhanced Commonwealth performance framework,
Commonwealth Risk Management Policy, 41, 51 2, 14, 20, 43, 44
Commonwealth Superannuation Corporation, 5, 6, entity resource statement, 201516, 1646
34 entry-level programs
Communities@Work, 4 Finance, 59
ComSuper, 5, 34 whole-of-government, 26, 39, 59
consultancies, 71 Environment Protection and Biodiversity
contestability reviews, 23, 37 Conservation Act 1999, 63
corporate governance, 4752 environmental performance
Corporate Plan 201516, 2, 7, 14, 15, 18, 21, 25, 43 cross-government activities, 65
mapped to Portfolio Budget Statements 201516, departmental activities, 624
158 summary, 645
corporate services, 47 ethical standards, 52
corrections (annual report 201415), 172 executive, 811
Cox Peninsula remediation, 26, 36, 66 Executive Board, 48, 51
Cunningham & Ors v Commonwealth of Australia & sub-committees, 489, 50
Anor, 56 Executive Board Diversity Champion, 58
expediency motions, 35
D Expenditure Review Committee of Cabinet, 15, 16,
Defence Housing Australia, 22, 54 29, 30
Department of Agriculture and Water Resources, 26 external scrutiny, 536
Department of Defence, 21, 22, 24
Department of Education and Training, 17 F
Department of Employment, 17 Facebook, 26
Department of Foreign Affairs and Trade, 18, 32 Final Budget Outcome, 30, 31
Department of Health, 54 Finance Enterprise Agreement 20152018, 59, 60
Department of Human Services, 17 Finance Transformation Steering Committee, 49
Department of Immigration and Border Protection, Finance Womens Network, 58
24 financial management, 6671
Department of Infrastructure and Regional financial performance
Development, 19 administered activities, 68
Department of Social Services, 17 departmental activities, 667
Department of the Prime Minister and Cabinet, 5, 16 economic performance summary, 70
Department of the Treasury, 2, 15, 16, 18, 54 entity resource statement, 1646
Deputy Secretaries, 8, 1011, 48 expenses for outcomes, 16671
derived underlying cash balance, 31 financial summary, 69
digital records management, 23 summary, 4
Digital Transformation Office, 5 financial statements, 73155
Disability Discrimination Act 1992, 55 streamlining, 4, 74
disability reporting mechanisms, 58 Financial Statements Audit Sub-Committee, 49
DisabilityCare Australia Fund, 6 fraud control plan, 52
diversity, workforce, 57, 58 Freedom of Information Act 1982, 56, 71
Diversity Council Australia, 58 functional and efficiency reviews, 23, 37
Diversity Network, 58 functions, 7
Diversity Plan (Finance), 4 Future Fund, 18
Future Fund Management Agency, 6
E
economic performance summary, 70 G
economic updates, 1516, 301 gateway reviews, 32, 44
efficiency reviews, 23, 37 govCMS, 28, 38
Efficiency through Contestability Program, 23, 37 Governance and APS Transformation, 11
employees. see MOP(S) Act employees; staff governance arrangements, 47
employment conditions, 59 review, 49
employment instruments, 60 governance policy frameworks, 44
185
governance (purpose), 7, 43 K
activities, 18
Karen Doane v Peter Slipper v Another, 55
highlights, 1819
KPMG, 51
results, 326
summary of performance, 18
governance structure, 48
L
government business enterprises, 3, 7, 33, 37 Lands Acquisition Act 1989, 35
Governors-General Pension Scheme, 41 learning management system, 61
graduate recruitment, 26, 39 legal actions, 556
grants, 70 legislation, 47. see also individual acts
Guidelines on Information and Advertising Legislation Committee, 54
Campaigns by non-corporate Commonwealth Lesbian, Gay, Bisexual, Transgender and Intersex Plus
entities, 40 (LGBTI+) Network, 58
H M
Head of Internal Audit, 49, 51 machinery of government changes, 19
Health and Hospitals Fund, 34, 36 market research, 163
health and wellbeing. see work health and safety Medibank Private Limited sale, 66
Medical Research Future Fund, 3, 18, 34, 36
I Medical Research Future Fund Act 2015, 18, 34, 36
Members of Parliament (Staff) Act 1984, 55, 161,
ICT
162. see also MOP(S) Act employees
benchmarking framework, 23
Microsoft Volume Sourcing Agreement, 27
Central Budget Management System, 15, 17, 30
Mid-Year Economic and Fiscal Outlook, 6, 30
entry-level programs, 26, 39
Minister for Finance, 4, 5, 10, 19, 70
govCMS, 28, 38
Minister for the Environment, 19
procurement, 40
Ministerial and Parliamentary Services, 2, 161
whole-of-government, 25, 44
MOP(S) Act employees, work health and safety,
ICT Hardware and Associated Services Panel, 39
1612
Independent Communications Committee, 40
motor vehicle fleet. see COMCAR; vehicle fleet
Independent Review of Whole-of-Government
Internal Regulation, 3, 23, 43, 44
Indo-Pacific region, 32
N
Information Publication Scheme, 56 National Disability Insurance Scheme, 44
Inquiry into the Medical Research Future Fund Bill National Disability Strategy 20122020, 58
2015, 54 National Land Ordinances, 35
insurance. see also Comcover National Property Efficiency Program, 3, 24
claims, 4, 66 National Telepresence System, 38
services, 7 Native Title Act 1993, 35
internal audit, 49, 51 non-defence properties
internal regulation review, 3, 23, 43, 44 divestment program, 21, 36
internal transformation program. see transformation environmental performance, 63
program (Finance) portfolio, 21, 25, 36, 38, 63, 70
International Day of People with Disability, 58 Norfolk Island, 19
Intra-Government Communications Network, 14, 22 notifiable incidents, 162
investment funds, 7, 18, 33, 36, 68, 169
O
J occupational health and safety. see work health and
Joint Committee of Public Accounts and Audit, 20, safety
54, 178 Offering Choice in Public Sector Superannuation
Joint Standing Committee on Foreign Affairs, Accumulation Plan, 34
Defence and Trade, 54 One Canberra Avenue, 62, 161
Judges Pensions Scheme, 41 operating model (Finance, new), 2, 46, 49, 61, 161
operating surplus, 4, 66
Operation Tetris, 24
186
organisational structure, 12 public works referrals, 35

outcomes and programs. see also purposes purposes, 7. see also outcomes and programs
expenses, 16671 budget and financial advice, management and
relationship to purposes, 158 reporting
structure, 78 activities, 15
highlights, 1517
P results, 2931
parliamentarians, support services, 42 summary of performance, 15
parliamentary committees, 545 governance, 326
Parliamentary Contributory Superannuation Scheme, activities, 18
41 highlights, 1819
parliamentary entitlements system, 42, 43 results, 326
parliamentary injury compensation scheme, 25 summary of performance, 18
Parliamentary Secretary to the Minister for Finance, 5 relationship to outcomes, 158
People and Culture Sub-Committee, 48 services, 3842
People and Projects Office, 10, 46 activities, 25
people with disability, 6, 57, 58 highlights, 257
Performance Framework Sub-Committee, 49 results, 3842
performance results. see purposes summary of performance, 25
performance management, 601 transformation, 378
performance pay, 60 activities, 21
performance statements (annual), 14, 20, 2944 highlights, 213
planning and reporting framework, 50 results, 378
Policy Advisory Sub-Committee, 48 summary of performance, 21
portfolio
changes, 5 Q
ministers, 5 quarantine facility (post-entry), Mickleham (Vic.), 26,
structure, 6 36
Portfolio Budget Statements 201516, 2, 7, 15, 18,
21, 25, 37, 158 R
mapped to Corporate Plan 201516, 158 Racial Discrimination Act 1975, 55
post-entry quarantine facility, Mickleham (Vic.), 26, 36 recruitment, 26, 36, 59
Pre-election Economic and Fiscal Outlook, 2, 16 Recruitment and Remuneration Sub-Committee, 49
Pride in Diversity, 58 remediation projects, 36
priorities remuneration, 59
201516, 14 reporting framework, 50
201617, 3 resource efficiency, 62
procurement, 701. see also AusTender revenue, 66
annual procurement plan 201516, 71 review of whole-of-government internal regulation,
Commonwealth procedures, 70, 71 3, 23, 43, 44
ICT, 40 risk management, 39, 51
performance, 39, 40 Risk Management Policy (Commonwealth), 41, 51
small business initiatives, 71 Risk managementprinciples and guidelines, 51
programs, 8, 158. see also outcomes and programs, Risk Sub-Committee, 49, 51
purposes role, 7
property
AlburyWodonga Development Corporation, 21, S
36
Safety, Rehabilitation and Compensation Act 1988,
capital works, 36
25
non-defence, 21, 25, 36, 38, 63, 70
scoping studies, 3, 14, 22, 37, 39, 42, 44
Protected voice, video and chat service, 27
Secretaries Committee on Transformation, 23, 49
Public Governance, Performance and Accountability
Secretary, 9
Act 2013, 3, 14, 29, 47, 49, 51, 70, 71, 178
review, 24
Public Governance, Performance and Accountability
Senate Select Committee on Health, 54
Rule 2014, 44, 178
Senate Select Committee on School Funding, 55
Public Service Act 1999, 47, 59
Senate Standing Committee on Publications, 54
Public Works Committee Act 1969, 35
187
Senate Standing Committees on Community Affairs, V

Legislation Committee, 54
vehicle fleet, 62. see also COMCAR
Senate Standing Committees on Finance and Public
Victorian Department of Premier and Cabinet, 28
Administration, 54
Villawood Immigration Detention Centre
Senate voting practices, 19
refurbishment, 26
services (purpose), 7, 43
activities, 25
highlights, 257
W
results, 3842 waiver of debt requests, 40
summary of performance, 25 waste management, 62
70:20:10 learning strategy (Finance), 61 whole-of-government
Sex Discrimination Act 1984, 55 coordinated arrangements, 39
shared and common services program, 3, 22, 43 ICT, 39, 40
shareholder oversight, 33 recruitment, 26, 39
social media, 26 Womens Network, 58
Special Minister of State, 4, 5, 25 work health and safety, 1612
staff Work Health and Safety Act 2011, 161, 162
awards, 28 Work Health and Safety Committee, 49, 161
diversity, 4, 57 workers compensation premium, 162
diversity networks, 58 workforce diversity, 58
employment conditions, 59
employment instruments, 60 Y
employment performance, 57 Young Leaders Network, 58
Finance Enterprise Agreement 20152018, 59, 60 youth employment package, 3, 16, 17
headcount, 57, 15960 Youth Employment Taskforce, 17
learning and development, 57, 61 Youth Jobs PaTH (Prepare, Trial, Hire) program, 17
non-salary benefits, 60
performance management, 601
profile, 15960
recruitment, 59
remuneration, 59, 160
Standards for Health Services in Australian
Immigration Detention Centres, 26
State of the Service Report, 58
streamlining
financial statements (Finance), 4, 74
security vetting processes, 23
Streamlining Grants Administration Program, 23
study assistance, 61
superannuation. see also ComSuper; Future Fund
advice to government, 334
merger, Commonwealth Superannuation
Corporation and ComSuper, 5, 34
payments to members, 41
statements, 41
surge readiness management model, 17
surplus property divestment program, 21
T
training and development, 17, 61, 161
transformation program (Finance), 2, 10, 44, 46, 49
transformation (purpose), 7, 43
activities, 21
highlights, 213
results, 378
summary of performance, 21
Trans-Pacific Partnership, 3, 18
Average length of service in Finance
2016
2010 2012 2014
2011 2013 2015
7 years
Identify as Aboriginal and/or

Torres Strait Islander
June 2015 June 2016
1.4% 1.6% Identify

as having
disability
Women in leadership June 2015

(Finance SES)
2.6%
2015 37.5%
June 2016
2016 39.2% 3.0%

Annual Report 2015 16 Online

Transféré par

Informations du document

Copyright

Formats disponibles

Partager ce document

Partager ou intégrer le document

Options de partage

Avez-vous trouvé ce document utile ?

Ce contenu est-il inapproprié ?

Droits d'auteur :

Formats disponibles

Annual Report 2015 16 Online

Transféré par

Droits d'auteur :

Formats disponibles

Annual Report

ISSN: 2203-8558 (print)

ISSN: 2203-8566 (online)

About this report

Guide to this report

performance framework; Senate electoral reform; a revised guideline for machinery of

Our priorities for the year ahead

Our financial performance

Changes to the portfolio

Australian Electoral Commission

Future Fund Management Agency

Commonwealth Superannuation Corporation

ASC Pty Ltd

Our aspiration and purposes

Leading the public sector in delivering excellence

Our role and functions

Our outcomes and programs

Figure 1: Outcomes and programs at 30 June 2016

Support sustainable Australian Government finances through

1.1 Budget and financial management

Support an efficient and high-performing public sector through providing

Property and Australian Government

2.4 Insurance and

Support for Parliamentarians and others as required by the Australian

3.1 Ministerial and parliamentary services

Our executive and business groups

Budget and Financial Reporting

Business Enabling Services

Commercial and Government

Governance and APS

Figure 2: Organisational structure at 30 June 2016

Budget and Business Commercial Governance

Budget Policy Corporate Commercial and Efficiency,

Summary of performance and highlights

Summary of performance and

Budget and financial advice, management

Summary of our performance

prepared budget documentation, including:

Delivering the governments fiscal and budget strategies

Youth employment package

Surging to deliver the 201617 Budget

Governancefoster leading public sector practice

Summary of our performance

Investment mandate for the Medical Research Future Fund

Clean Energy Innovation Fund

Reform of Senate voting practices

Amendments to the Commonwealth Electoral Act for Norfolk Island

Revised guideline for machinery of government changes

Administration of the Central Advertising System

Enhanced Commonwealth performance

Transformationinnovate and improve public

Summary of our performance

Reform of the Air Warfare Destroyer Program

Review of ASCs mandate, corporate and capital structure and governance

Intra-Government Communications Network scoping study

Competitive tender process to operate the ASIC Registry

Defence Housing Australia forensic review

Australian Rail Track Corporation scoping study

Shared and common services program

Revised ICT benchmarking framework

Streamlining Grants Administration Program

Digital records management

Efficiency through Contestability Program

Independent review of whole-of-government internal regulation

Summary of performance and highlights