2. Income and Expenses Administered on Behalf of Government

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

2.1 Administered—Expenses

2.1A: Employee benefits
2018
$'000
2017
$'000
Wages and salaries 11,533 10,498
Superannuation
Defined contribution plans 1,491 1,456
Defined benefit plans 71 87
Leave and other entitlements 1,414 845
Other employee expenses 424 1,062
Total employee benefits 14,933 13,948
2.1B: Suppliers
2018
$'000
2017
$'000
Goods and services supplied or rendered
Service fees 30,201 31,213
Service delivery arrangements 76,603 67,487
Fuel and oil 10,881 11,259
Rail and road research 11,901 10,374
Medical supplies 4,503 4,360
Property and operating costs 8,993 7,036
Repairs and maintenance 6,283 5,642
Travel and accommodation 595 467
Information, communication and technology 1,405 1,407
Other goods and services 8,008 3,992
Total goods and services supplied or rendered 159,373 143,237
Goods supplied 10,881 11,259
Services rendered 148,492 131,978
Total goods and services supplied or rendered 159,373 143,237
Other suppliers
Operating lease rentals 143 175
Workers compensation expenses 58 94
Total other suppliers 201 269
Total suppliers 159,574 143,506

Operating lease rentals relate to short-term residential and storage leases There were no material commitments for these leases at 30 June 2018 (2017: Nil).

2.1C: Subsidies
2018
$'000
2017
$'000
Subsidies in connection with
Tasmanian Freight Equalisation Scheme 147,322 137,612
Bass Strait Passenger Vehicle Equalisation Scheme 49,737 47,769
Other subsidies 22,643 20,867
Total subsidies 219,702 206,248
2.1D: Grants
2018
$'000
2017
$'000
Public sector
Australian Government entities (related parties) 390,570 407,725
State and Territory Governments 2,455,812 3,516,451
Local Governments 692,154 778,912
Private sector
Not-for-profit organisations 450,110 231,232
Commercial entities 42,878 68,172
Overseas 2,483 2,472
Total grants 4,034,007 5,004,964

Grants to State and Territory Governments include $2.432 billion (2017: $3.497 billion) paid to local government bodies through State and Territory Governments, mainly for Financial Assistance Grants. These were previously reported as grants to local government and comparatives have been restated accordingly.

2.1E: Write-down and impairment of assets
2018
$'000
2017
$'000
Impairment of financial assets 1,045 78
Investment in Administration of Norfolk Island - 63,053
Write-down of land and buildings 529 466
Write-down of property, plant and equipment 840 280
Write-down of heritage and cultural assets 209 -
Write-down of finance leases1 341,025 361,461
Total write-down and impairment of assets 343,648 425,338
  1. Lease of land to WSA Co Limited and at Melbourne Airport for no or nominal consideration. (2017: Lease of land to the Moorebank Intermodal Company Limited and at Melbourne Airport for nominal consideration).
2.1F: Payments to corporate Commonwealth entities
2018
$'000
2017
$'000
Australian Maritime Safety Authority 69,717 65,716
Civil Aviation Safety Authority 41,313 41,892
Infrastructure Australia 11,592 11,581
National Transport Commission 3,400 3,358
Total payments to corporate Commonwealth entities 126,022 122,547

Accounting Policy

Grants and Subsidies

The Department administers a number of grant and subsidy schemes on behalf of the Government. Grant and subsidy liabilities are recognised to the extent that (i) the services required to be performed by the applicant have been performed or (ii) the eligibility criteria have been satisfied, but payments due have not been made.

Payments to corporate Commonwealth entities

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

2.2 Administered—Income

Revenue

Taxation Revenue

2.2A: Other taxes
2018
$'000
2017
$'000
Levies 2,216 1,607
Land tax equivalents 40,070 35,978
Other tax equivalents 4,897 4,107
Total other taxes 47,183 41,692

Non-Taxation Revenue

2.2B: Sale of goods and rendering of services
2018
$'000
2017
$'000
Sale of goods 2,382 1,160
Rendering of services 18,474 19,333
Total sale of goods and rendering of services 20,856 20,493
2.2C: Other contributions
2018
$'000
2017
$'000
Western Sydney Airport—preparatory activities 146,100 -
Total other contributions 146,100 -
2.2D: Fees and fines
2018
$'000
2017
$'000
Interstate Road Transport 69,284 67,599
Motor Vehicle Standards 10,772 9,090
Marine Navigation levies 87,808 83,976
Protection of the Sea levies 35,190 33,535
Airport Building Controllers 6,504 6,331
Airport Environment Officers 1,494 1,204
Other fees 2,902 2,407
Fees from regulatory services 213,954 204,142
Fines 810 1,256
Total fees and fines 214,764 205,398
2.2E: Interest
2018
$'000
2017
$'000
Loans 63,501 40,582
Unwinding of discount—concessional loans 10,919 5,580
Other 13 18
Total interest 74,433 46,180
2.2F: Other revenue
2018
$'000
2017
$'000
Refund of previous years payments 268 170
Insurance recoveries 1,454 557
Rental income 3,182 3,002
Phosphate mine royalties 1,639 1,380
Other 889 717
Total other revenue 7,432 5,826

Rental income is mainly associated with residential properties in the Indian Ocean Territories, Jervis Bay Territory and Badgerys Creek, NSW. Residential lease agreements are cancellable by either the lessor or the lessee by giving the required notice.

2.2G: Other gains
2018
$'000
2017
$'000
Recognition of assets at fair value—Melbourne Airport land 7,200 5,185
Reversal of impairment of financial assets 279 6,361
Recognition of other assets at fair value 77 227
Reversal of provision for asbestos removal 146 -
Total other gains 7,702 11,773

Accounting Policy

Revenue

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

The main sources of administered revenue are:

Other taxes
  1. land tax and similar equivalency payments for commercial use of Commonwealth owned land (mainly at regulated airports)
  2. other tax equivalency payments applied in the Indian Ocean Territories and Jervis Bay Territory and
  3. conservation levies associated with phosphate mining activities on Christmas Island.
Sales of goods and services

Provision of goods and services in the Indian Ocean Territories, Jervis Bay Territory and Norfolk Island including electricity supply, water and sewerage and medical fees. Revenue from the sale of goods also includes proceeds from the extraction of surplus sand at regulated airports.

Fees and fines
  1. Interstate Road Transport registration fees and related items charged under the Federal Interstate Registration Scheme. The scheme has been discontinued from 1 July 2018
  2. vehicle import and related fees charged under the Motor Vehicle Standards Act 1989
  3. Marine Navigation and Protection of the Seas levies are remitted to the Commonwealth by the Australian Maritime Safety Authority (AMSA) who collect the levies from commercial shipping operators. An equivalent amount is paid to AMSA from a special appropriation administered by the Department (refer Note 5.1C)
  4. application fees collected by Airport Building Controllers for construction activities at regulated airports and recovery of costs for Airport Environment Officers and
  5. licenses and other fees charged under the Coastal Trading (Revitalising Australian Shipping) Act 2012.
Other revenue
  1. interest on loans recognised using the effective interest rate
  2. dividend revenue from Australian Government owned entities
  3. royalties on phosphate extracted from mining activities on Christmas Island and
  4. recovery of costs from WSA Co Ltd for preparation of the Western Sydney Airport site.

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