Glossary of terms

10B & 10BA tax concessions

Under the provisions of Division 10BA of the Income Tax Assessment Act 1936, Australian resident taxpayers are generally able to claim a deduction for 100 per cent of monies invested in certain production costs of certain film and television programs. Alternatively, the Australian resident taxpayer may elect to claim a two-year write-off for certain capital expenditure incurred under Division 10B of the same Act.

Since the concessional tax treatment provided under Division 10BA is restricted to Australian tax residents, it will generally not be available where investment in the production of an Australian film is conducted through an Australian branch arrangement. However, since the concession provided by Division 10B extends to non-residents, more flexibility may be available in structuring the film operations.

Accrual accounting

System of accounting where items are brought to account and included in the financial statements as they are earned or incurred, rather than as they are received or paid.

Accrual budget

A comprehensive budget incorporating assets, liabilities and revenues, as well as cash receipts and expenditures. Thus an accrual budget is an extension of the cash budget, focussing on all the resource implications of the strategic and operational plan.

Activity

What an agency does to convert inputs into outputs.

Administered items

Expenses, revenues, assets or liabilities managed by agencies on behalf of the Australian Government. Agencies do not control administered items. Administered expenses include grants, subsidies and benefits. In many cases, administered expenses fund the delivery of third party outputs.

Additional estimates

Where amounts appropriated at Budget time are insufficient, Parliament may appropriate more funds to portfolios through the Additional Estimates Acts.

Agency

Agencies are departments of state, departments of parliament and 'prescribed agencies' for the purposes of the Financial Management and Accountability Act 1997. Where the term is used generally in this document, it is meant to refer to departments, agencies, authorities and non-commercial companies.

Annual report

One of the major accountability documents presented to Parliament. It provides a broad statement of agency or authority capability and performance. It allows chief executives to account to their minister for the efficiency and effectiveness of the administration for which the minister is ultimately responsible.

Appropriation

An authorisation by Parliament to spend moneys from the Consolidated Revenue Fund for a particular purpose.

APS employee

A person engaged under section 22 or a person who is engaged as an APS employee under section 72 of the Public Service Act 1999.

Assets

Future economic benefits controlled by an entity as a result of past transactions or other past events.

Australian Workplace Agreements

An Australian Workplace Agreement (AWA) is a formalised individual contract that is registered by the Office of the Employment Advocate.

Federal provisions for AWAs were introduced by the Howard Government in new measures enacted in late 1996 and early 1997. An AWA is a confidential agreement between an employer and individual employee. A trade union can act as a bargaining agent for an employee but cannot be a party to an AWA. Even though part of the federal system, AWAs can override the provisions of state awards as well as federal awards.

Average staffing level

The average number of employees receiving salary or wages over the financial year, with adjustments for casual and part-time employees to show the full-time equivalent.

Business angels

Individuals who invest capital in, and bring management expertise to new enterprises with growth potential. Business angels provide equity capital funding to start-up and early stage high-technology companies, as well as managerial expertise.

Capital-use charge

The capital-use charge is a dividend requirement levied on Commonwealth General Government sector agencies and authorities. The capital-use charge payment is based on those agencies and authorities departmental new assets at financial year end. Funding for the capital-use charge is included in agencies and authorities departmental price of outputs appropriation.

Certified agreement

A certified agreement is a written agreement about working conditions and wages made between an employer and its employees that is approved and certified by an industrial tribunal. Employees can be represented by trade unions but this is not mandatory. Certified agreements are made available by the federal Workplace Relations Act 1996 (Pt VIB), as well as by the Queensland Industrial Relations Act 1999.

Chief Executive Instructions

Instructions issued by the Secretary of the Department for the administration of the department. These instructions are issued under the authority of the Financial Management and Accountability Act 1997, and carry the force of the law.

Competitive tendering

The process by which agencies call for offers to perform a service from internal and external bodies, including the private sector and other departments and agencies, in an open and transparent competitive environment.

Competitive tendering and contracting (CTC)

The process of contracting out the delivery of government activities previously performed by a Commonwealth agency to another organisation. The activity is submitted to competitive tender, and the preferred provider of the activity is selected from the range of bidders by evaluating offers against predetermined selection criteria.

Consultancy services

Consultancy services are one particular type of service delivered under a contract for services. They are distinguished from other contracts for services by the nature of the work performed. A consultant is an entity, whether an individual, a partnership or a corporation, engaged to provide professional, independent and expert advice or services. Typically, the term consultancy services is used to describe the application of expert professional 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 the agency in management decision making.

A consultancy contract will typically define the nature and purpose of the task to be performed but not (in any detail) the manner in which the task is to be performed. By contrast, other (non-consultancy) contracts for services will typically be far more restrictive in the degree of latitude afforded to the contractor.

Corporate governance

The process by which agencies are directed and controlled. It is generally understood to encompass authority, accountability, stewardship, leadership, direction and control.

Departmental items

Resources directly controlled by agencies, including salaries and allowances. Such resources are used to produce outputs on behalf of government, including outsourced activities funded and controlled by the agency.

Depreciation

An expense recognised systematically for the purpose of allocating the cost of a non-current asset over its useful life.

Deprival asset valuation

Values non-financial assets according to the current cost of their replacement. That is, non-financial assets are valued at the lowest cost of replacing the gross 'service potential' of those assets.

Discretionary grants

Payments where the portfolio minister and paying agency has discretion in determining whether or not a particular applicant receives funding and may or may not impose conditions in return for the grant.

Educational Lending Right

The Educational Lending Right program provides payments to eligible Australian creators (authors, editors, illustrators, translators, and compilers) and publishers whose books are held in educational lending libraries.

Effectiveness indicators

Indicators to assess the degree of success in achieving outcomes. They are likely to relate to intermediate outcomes below the planned outcomes specified at Budget level.

Equity or Net assets

Residual interest in the assets of an entity after deduction of its liabilities.

e-Research

e-Research is the term used to describe new, large scale research projects which are being made possible through recent developments in communications technology.

Expense

Total value of all of the resources consumed in producing goods and services.

Financial results

The results shown in the financial statements of an agency.

First mile connection

The telecommunications connection between the premises of a user organisation and the core backbone network. This is also often referred to as the 'last mile' connection.

Inputs

Resources in the form of people, materials, energy, facilities and funds that an agency uses in activities to produce outputs.

Information economy

The 'information economy' is the term adopted by the Australian Government to describe the transformation of economic and social activities through the application of ICT. An information economy is one where information, knowledge and education are major inputs to business, social and community activities.

Internal auditing

Internal auditing is an independent, objective assurance and consulting activity designed to add value and improve an organisation's operations. It helps an organisation accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control, and governance processes.

Liabilities

Future sacrifices of economic benefits that an entity is presently obliged to make to other entities as a result of past transactions or other past events.

Non-ongoing APS employee

An APS employee who is not an ongoing APS employee.

Ongoing APS employee

A person engaged as an ongoing APS employee as mentioned in paragraph 22(2)(a) of the Public Service Act 1999.

Operations

Functions, services and processes performed in pursuing the objectives or discharging the functions of an agency.

Outcomes

The results, impacts or consequences of actions by the Commonwealth on the Australian community. Planned outcomes are the results or impacts that the Government wishes to achieve. Actual outcomes are the results or impacts actually achieved.

Outputs

The goods and services an agency produces to contribute to the achievement of an outcome.

Performance measures

Performance measures relate to outcomes, outputs, third party outputs and administered items. They are used when there is a direct causal link between an intervention and a measurable change in performance.

Portfolio Additional Estimates Statements

Similar to the Portfolio Budget Statements and prepared at Additional Estimates time to support an update on the Government's original annual budget for the department.

Portfolio Budget Statements

A document presented by the Minister to Parliament to inform the Parliament of the basis for the department's budget appropriations in support of the provisions in Appropriation Bills 1 and 2. The statements summarise the department budget and provide detail of outcome performance forecasts and resources in order to justify expenditure.

Public Lending Right

The Public Lending Right program provides payments to eligible Australian creators (authors, editors, illustrators, translators, and compilers) and publishers whose books are held in public lending libraries.

Purchaser/provider arrangements

Arrangements under which the outputs of one agency are purchased by another agency to contribute to outcomes.

Quality

Relates to the characteristics by which customers or stakeholders judge an organisation, product or service. Assessment of quality involves the use of information gathered from interested parties to identify differences between userÕs expectations and experiences.

Risk management

The culture, frameworks and structures that are directed towards the effective management of potential opportunities and adverse effects. Risk management involves the systematic application of management policies, procedures and practices to the steps of establishing the context, identifying, analysing, evaluating, treating, monitoring and communicating risk.

Service charters

A service charter is a public statement about the service that a department or agency will provide and what customers can expect from the department.

Special appropriations

Moneys appropriated by Parliament in an Act separate to an annual Appropriation Act, where the payment is for a specified amount. Special appropriations are not subject to Parliament's annual budget control, unlike the annual appropriations.

Sub-outputs

Sub-outputs identify components that together form an output.

Teletypewriter (TTY)

A TTY is a text-based telecommunications device used by people who are deaf, or have a hearing or speech impairment, and who cannot use a voice telephone.

Third party outputs

Goods or services delivered to the community by entities outside the Commonwealth General Government Sector. They are outputs wholly or partly funded by administered items and are directed to achieving planned outcomes.