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Section 2 : Agency Resources for 2005-06

2.1 Appropriations and other resources

The total appropriations and other revenue to be received by CASA in 2005-06 is $117.1m, comprising $106.5m for departmental outputs (including $65.9m from a special appropriation) and $10.6m revenue receipts from independent sources - refer to Table 2.1 for details.

CASA's total appropriation and other revenue in 2005-06 have decreased by $2.0m from the estimated actual for 2004-05. This decrease is largely attributable to the implementation of the Long-Term Funding Strategy (LTFS). The LTFS is in response to the Minister's request to put into place a framework aimed at achieving five significant objectives, namely:

  1. linking funding to industry activity
  2. self sustainability
  3. no increases in funding from government appropriations
  4. a phased reduction in the fuel excise commencing 2008, and
  5. efficient and effective fiscal management.

As a result of the implementation of the LTFS departmental appropriations in 2005-06 have decreased by $7.6m (reflecting a decrease of $8.6m departmental appropriation, offset by an increase of $1.0m in departmental special appropriation). This decrease is offset by an increase in revenue receipts from independent sources of $5.5m, representing the phasing in of cost recovery from 1 January 2006.

The LTFS includes the government maintaining the existing rate of excise and customs duty on aviation gasoline and turbine fuel, with 2.854 cents per litre to be appropriated to CASA. Once full cost recovery is in place, it is proposed that the fuel excise levy will commence being reduced from the 2008-09 financial year.

Details of these measures are provided at Table 2.2.

Table 2.1: Appropriations and other revenue 2005-06(a)

Notes:

  1. This table has been redesigned to correspond with Budget Paper No.4 'Agency Resourcing'. It now includes (where appropriate) administered revenue from other sources.
  2. Under the appropriation structure, Bill No.2 includes Specific Purpose Payments (SPPs), New Agency Outcomes (NAOs), administered capital and departmental capital via departmental injections and loans.
  3. Estimated expenses from individual Special Appropriations are shown at Section 2, Table 2.5.
  4. Total appropriations = Bill No.1 + Bill No.2 + Special Appropriations.
  5. Revenue from other sources includes FMA s.31 revenues, CAC body revenues that are available to be expensed, special accounts (non appropriation revenues) and resources received free of charge.
  6. Percentage figures indicate the percentage contribution of revenue from government (departmental appropriations) to the total price of outputs, by outcome, and the percentage contribution of revenue from other sources (departmental) to the total price of outputs, by outcome.
  7. Total resources = Total appropriations + Revenue from other sources.

2.2 Budget measures

Budget measures relating to CASA as explained in Budget Paper No.2 are summarised in Table 2.2.

Table 2.2: Summary of measures disclosed in the 2005-06 Budget

Notes:

  1. The figures for expense measures reflects the impact on the underlying cash balance and may differ from the actual resources to be received by the Department due to the treatment of accrual adjustments, such as depreciation.

Further details of the measures listed are published in Budget Paper No.2.

2.3 Other receipts available to be used

Table 2.3 provides details of other receipts available to be used and include Financial Management and Accountability Act 1997 (FMA Act) section 31 receipts, CAC body receipts that are available to be spent, special accounts (non-appropriation receipts) and resources received free of charge. These estimates are exclusive of GST.

These estimates include revenue from cost recovery arrangements within CASA. For further explanation of the CASA's cost recovery arrangements, refer to 'Section 4.2 Cost recovery arrangements'.

CASA's functions under the Civil Aviation Act 1988 include the provision of regulatory services. This encompasses issuing certificates, licences and permits to the aviation industry. At present, CASA has limited cost recovery arrangements in place for the provision of these regulatory services. Fee levels for individual services are well below the cost of providing those services. Existing fees were increased in 2004-05 being the first increase since CASA was formed in 1995.

CASA, as part of a comprehensive strategy for sustainable long-term funding, will progressively initiate full cost recovery of its services in 2005-06. The proposed increases in revenue received from independent resources are expected to increase cost recovery from the current $5.1m to $10.6m for the 2005-06 financial year.

Table 2.3: Other receipts available to be used1

Notes:

  1. Regulatory service fees are the fees charged for the provision of regulatory services to the aviation industry. The Civil Aviation (Fees) Regulations 1995 prescribes the types of services and billable amounts that can be recovered from industry.

1 This amount may differ from the amount shown as revenue from other sources at Table 2.1, which reports accrued revenues, as opposed to Table 2.3, which reports cash receipts.

2.4 Movement of administered funds between years

Table 2.4: Movement of administered funds between years

CASA does not receive administered funds.

2.5 Special Appropriations

Table 2.5: Estimates of expenses from special appropriations

The Special Appropriation represents excise and customs duty on aviation gasoline and turbine fuel, which is collected by the Australian Taxation Office and paid to CASA through the Aviation Fuel Revenues (Special Appropriation) Act 1999.

The government has decided to maintain the existing rate of excise and customs duty on aviation gasoline and turbine fuel, with 2.854 cents per litre to be appropriated to CASA. Once full cost recovery is in place, it is proposed that the fuel excise levy will commence being reduced from the 2008 09 financial year.

2.6 Special Accounts

Table 2.6: Estimates of special account flows and balances

CASA does not maintain special accounts.

2.7 Administered capital and departmental equity injections and loans

Administered capital

CASA does not receive administered capital.

Departmental Equity Injections

CASA will not receive departmental equity injections and loans in 2005-06.

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