Financial Performance - Administered

Income administered on behalf of Government

Administered Income

Total 2011-12 administered income was $2.208 billion, major items include:

• other revenue of $1.951 billion, which relates to Health and Hospitals Fund receipts ($1.241 billion), collections from Private Health Insurance Administration Council (PHIAC) for private health insurance administration levies ($0.382 billion) and recoveries from States and Territories for Residential and Packaged Aged Care Services ($0.252 billion);
• recoveries made under arrangements with pharmaceutical companies of $0.194 billion and a further $0.041 billion which relates to the collection of monies by Medicare Australia which is recoverable from individuals after the settlement of personal injury claims; and
• taxation revenue of $0.015 billion, primarily comprising the levy imposed on eligible doctors to raise revenue towards the Run Off Cover Scheme Support payment arrangements;

Total administered expenses increased by $5.0 billion

Administered Expenses

For the 2011-12 reporting period total expenses administered on behalf of the Commonwealth was $49.704 billion:

• personal benefits expense increased by 8.4% to $33.573 billion ($30.975 billion in 2010-11). Personal benefits primarily relate to the Medicare Benefits and Pharmaceutical Benefits Schemes. These schemes fund access to medical services and medicines;
• subsidies expense increased by 13.3% to $9.047 billion ($7.987 billion in 2010-11). Subsidies are primarily administered by the Ageing and Aged Care Division, and relate to residential, aged and community care programs which provide support for healthy ageing for older Australians and quality and cost-effective care for older people and support of their carers;
• grants expense increased by 28.9% to $6.138 billion ($4.760 billion in 2010-11) in line with Budget expectations. This included the increase in Health and Hospital Fund investment;
• supplier expenses were $0.454 billion ($0.323 billion in 2010-11); and
• other expenses of $0.405 billion ($0.355 billion in 2010-11) of which $0.382 billion relates to the transfer of levies from the Private Health Insurance Administration Council (PHIAC) to the Official Public Account (OPA).

Total administered assets increased by $0.1 billion

Assets and Liabilities – Administered

Total administered assets increased by $0.064 billion to $1.009 billion ($0.945 billion in 2010-11). Major administered assets comprise receivables of $0.402 billion, investments of $0.218 billion (including Health Workforce Australia) and inventories of $0.208.

Total administered liabilities increased by $0.6 billion

Total administered liabilities increased by $0.567 billion to $3.418 billion ($2.851 billion in 2010-11) primarily as a result of an increase in benefits owing under Medicare arrangements.