2011-2012

Agency Overview and Resources

• PDF version of Agency Overview and Resources (PDF 463 KB)
• Word version of Agency Overview and Resources (Word 144 KB)

Section 1: Agency Overview and Resources

1.1 Strategic Direction

Since the 2011-12 Budget the Government has announced more than $494 million over four years of spending initiatives to improve critical health and aged care services, including new and amended listings under the Pharmaceutical Benefits Scheme which include:

• Xgeva® (denosumab), for the treatment of bone metastases from breast cancer and hormone resistant prostrate cancer;
• Mabthera® (rituximab), for the treatment of a specific form of chronic lymphocytic leukaemia;
• Erbitux® (cetuximab), for the treatment of metastatic colorectal cancer; and
• Gilenya® (fingolimod), for the treatment of relapsing-remitting multiple sclerosis.

The department is currently working to implement an extensive efficiency program announced as part of the 2011-12 Budget. This will result in a portfolio with a flexible approach to the funding of health priorities and staff that are better enabled and supported to deliver on the Government’s agenda effectively and efficiently. Following the Government's decision to increase the Efficiency Dividend from 1.5% to 4% in 2012-13, the department is positioning itself to achieve further efficiencies in the second half of 2011-12. In conjunction with a reduction in staffing, the department is looking at the way it delivers some core programs so effort can be focussed on delivering legislative and regulatory responsibilities and the Government's priorities, including health reform.

1.2 Agency Resource Statement

The Agency Resource Statement details the resourcing for the Department of Health and Ageing at Additional Estimates. Table 1.1 outlines the total resourcing available from all sources for the 2011-12 Budget year, including variations through Appropriation Bills No.3 and No.4, special appropriations and special accounts.

Table 1.1: Health and Ageing resource statement — Additional estimates for 2011-12 as at Additional Estimates February 2012

	Estimate as at budget 2011-12 $'000	Proposed Additional Estimates 2011-12 $'000	Total estimate at AEs 2011-12 $'000	Total Available Appropriation 2010-11 $'000
Departmental resources
Ordinary annual services
Estimates of prior year amounts available in 2011-121,2	227,957	-	227,957	178,250
Departmental appropriation3,4	600,236	29,023	629,259	607,884
s31 Relevant agency receipts	20,010	-	20,010	23,349
Total ordinary annual services	848,203	29,023	877,226	809,483
Other Services5
Non-operating
Equity injections	24,613	(12,324)	12,289	100,311
Total Other Services	24,613	(12,324)	12,289	100,311
Departmental special accounts6
Opening balance3	58,228	-	58,228	58,030
Appropriation receipts	10,775	-	10,775	9,998
Non-appropriation receipts to Special accounts	126,060	457	126,517	112,513
Total special accounts	195,063	457	195,520	180,541
Total departmental resourcing	1,067,879	17,156	1,085,035	1,090,335
Less appropriations drawn from annual or special appropriations above and credited to Special Accounts and/or CAC Act bodies through annual appropriations	(10,775)	-	(10,775)	(9,998)
Total net departmental resourcing for Health and Ageing	1,057,104	17,156	1,074,260	1,080,337
Administered resources
Ordinary annual services3
Outcome 1: Population Health7	367,868	(7,765)	360,103	262,032
Outcome 2: Access to Pharmaceutical Services	657,638	(4,545)	653,093	617,840
Outcome 3: Access to Medical Services	107,374	500	107,874	109,617
Outcome 4: Aged Care and Population Ageing	800,052	(115,938)	684,114	847,603
Outcome 5: Primary Care	892,228	(37,383)	854,845	815,349
Outcome 6: Rural Health	92,437	(14)	92,423	184,610
Outcome 7: Hearing Services	410,660	(23,886)	386,774	363,368
Outcome 8: Indigenous Health	722,824	(9,279)	713,545	641,131
Outcome 9: Private Health	3,913	-	3,913	14,624
Outcome 10: Health System Capacity and Quality	554,285	(8,179)	546,106	260,288
Outcome 11: Mental Health	292,920	12	292,932	186,660
Outcome 12: Health Workforce Capacity	1,120,888	-	1,120,888	711,619
Outcome 13: Acute Care	155,232	585	155,817	140,242
Outcome 14: Biosecurity and Emergency Response	26,279	(600)	25,679	26,991
Outcome 15: Sport Performance and Participation8	-	-	-	22,974
Payments to CAC Act Bodies	37,325	(781)	36,544	40,704
Total ordinary annual services	6,241,923	(207,273)	6,034,650	5,245,652
Other services5
Payments to States, ACT, NT and local government
Outcome 1: Population Health	25,793	-	25,793	7,841
Outcome 15: Sport Performance and Participation8	-	-	-	2,150
Total payments	25,793	-	25,793	9,991
Administered non-operating
Administered assets and liabilities	535	-	535	27,910
Payments to CAC Act Bodies - non-operating	-	-	-	300
Total non-operating	535	-	535	28,210
Total other services	26,328	-	26,328	38,201
Special appropriations limited by criteria/entitlement
National Health Act 1953 - Essential vaccines	19,110	31,826	50,936	39,927
National Health Act 1953 - Pharmaceutical benefits	9,646,858	(230,278)	9,416,580	8,774,856
National Health Act 1953 - Aids and appliances	266,319	(558)	265,761	244,738
Health Insurance Act 1973 - Medical benefits	16,901,499	192,714	17,094,213	16,266,209
Dental Benefits Act 2008</em>]	75,306	-	75,306	57,509
Aged Care Act 1997 – Flexible care subsidies	815,653	17,282	832,935	628,321
Aged Care Act 1997 – Residential care subsidies	7,006,144	443,950	7,450,094	6,721,389
Aged Care Act 1997 - Community care subsidies	587,069	(12,403)	574,666	531,715
National Health Act 1953 - Continence aids payment scheme	44,269	4,000	48,269	39,541
Aged Care (Bond Security) Act 2006	-	-	-	5,585
Private Health Insurance Act 2007	3,753,656	973,747	4,727,403	4,727,601
National Health Act 1953 - Blood fractionation, products and blood related products to National Blood Authority	646,003	-	646,003	608,868
Medical Indemnity Act 2002	117,200	(9,700)	107,500	58,610
Midwife Professional Indemnity (Commonwealth Contribution) Scheme Act 2010	3,244	(1,992)	1,252	-
Midwife Professional Indemnity (Run-off Cover Support Payment) Act 2010	-	-	-	-
Payments to CAC Act Bodies
Private Health Insurance Act 2007 - Risk Equalisation Trust Fund	345,000	-	345,000	316,053
Private Health Insurance Act 2007 - Council Administration Levy	5,366	-	5,366	5,235
Total special appropriations	40,232,696	1,408,588	41,641,284	39,026,157
Administered special accounts6
Opening balance3	13,799	-	13,799	11,877
Appropriation receipts	4,595	-	4,595	12,299
Non-appropriation receipts to special accounts	1,290,865	212,888	1,503,753	698,542
Total special accounts	1,309,259	212,888	1,522,147	722,718
Total administered resourcing	47,810,206	1,414,203	49,224,409	45,032,728
Less appropriations drawn from annual or special appropriations above and credited to Special Accounts and/or CAC Act bodies through annual appropriations	(392,286)	781	(391,505)	(374,591)
Total net administered resourcing for Health and Ageing	47,417,920	1,414,984	48,832,904	44,658,137
Total net resourcing for Health and Ageing	48,475,024	1,432,140	49,907,164	45,738,474

All figures are GST exclusive
1 - The estimate of prior year amounts available constitutes opening balance at bank and appropriation receivable for the core department (excluding special accounts).
2 - The estimate at Budget has been revised to reflect the 2010-11 Annual Report.
3 - Appropriation Bill (No 1 & 3) 2011-12.
4 - Includes an amount of $9.942m in 2011-12 for the Departmental Capital Budget (refer to table 3.2.5 for further details). For accounting purposes this amount has been designated as 'contributions by owners'.
5 - Appropriation Bill (No 2 & 4) 2011-12.
6 - Estimated balances for special accounts (less 'Special Public Money' held in accounts like Other Trust Monies accounts (OTM) and Services for other Government and Non-agency Bodies). For further information on special accounts see Table 3.1.1.
7 - The proposed additional estimates for Outcome 1 includes a reduction of $11.823 million for a transfer under s32 of the FMA Act to the Australian National Preventive Agency for the National Binge Drinking Strategy.
8 - The sports function transferred to the Department of Prime Minister and Cabinet as a result of the revised Administrative Arrangement Orders of 14 September 2010.

Top of page

1.3 Agency Measures Table

Table 1.2 summarises new Government measures taken since the 2011-12 Budget.

Table 1.2: Agency 2011-12 Measures since Budget

	Program	2011-12 $'000	2012-13 $'000	2013-14 $'000	2014-15 $'000
Outcome 1: Population Health
National Immunisation Program - listing of Fluarix
Department of Health and Ageing Administered expenses	1.5	(167)	(173)	(178)	(183)
Total		(167)	(173)	(178)	(183)
National Immunisation Program - Q fever vaccine - revised arrangements
Department of Health and Ageing Administered expenses	1.5	-	(1,426)	(1,426)	(1,426)
Total		-	(1,426)	(1,426)	(1,426)
Therapeutic Products - establishment of the Australia New Zealand Therapeutic Products Agency
Department of Health and Ageing
Departmental expenses	1.4	nfp	-	-	-
Departmental capital		nfp	-	-	-
Total		-	-	-	-
Outcome 2: Access to Pharmaceutical Services
Herceptin® Program - additional vial size
Department of Health and Ageing Administered expenses	2.3	(4,545)	(5,137)	(5,315)	(5,494)
Department of Human Services
Departmental expenses		575	-	-	-
Departmental capital		434	-	-	-
Total		(3,536)	(5,137)	(5,315)	(5,494)
Pharmaceutical Benefits Scheme - new and amended listings
Department of Health and Ageing Administered expenses	2.2	66,476	112,898	128,082	135,120
	3.1	941	(1,217)	(841)	(560)
Department of Veterans' Affairs Administered expenses		814	669	737	645
Department of Human Services
Departmental expenses		354	422	634	662
Departmental capital		227	-	-	-
Total expenses		68,812	112,772	128,612	135,867
Department of Health and Ageing Administered revenue		nfp	nfp	nfp	nfp
Total revenue		nfp	nfp	nfp	nfp
Pharmaceutical Benefits Scheme - price amendments
Department of Health and Ageing Administered expenses	2.2	(17,794)	(38,658)	(38,823)	(40,993)
Department of Veterans' Affairs Administered expenses		(1,780)	(3,793)	(3,743)	(3,804)
Total expenses		(19,574)	(42,451)	(42,566)	(44,797)
Outcome 3: Access to Medicare Services
Medicare Benefits Schedule - new and revised listings
Department of Health and Ageing
Administered expenses	3.1	(105)	(177)	(385)	(611)
Departmental expenses		-	-	-	-
Department of Veterans' Affairs Administered expenses		(192)	(646)	(673)	(722)
Department of Human Services Departmental expenses		(5)	(23)	(26)	(29)
Total expenses		(302)	(846)	(1,084)	(1,362)
Positron Emission Tomography (PET) services at Westmead Hospital
Department of Health and Ageing
Administered expenses	3.3	-	-	-	-
Departmental expenses		-	-	-	-
Treasury Departmental expenses		(1,300)	(1,300)	(1,300)	(1,300)
Total		(1,300)	(1,300)	(1,300)	(1,300)
Outcome 4: Aged Care and Population Ageing
Clean Energy Future - Helping Households - residential aged care
Department of Health and Ageing Administered expenses	4.6	-	542	418	321
Department of Veterans' Affairs Administered expenses		-	99	76	58
Total		-	641	494	379
Outcome 10: Health System Capacity and Quality
Health and Hospitals Fund - Royal Hobart Hospital - bring forward of funding
Department of Health and Ageing Administered expenses	10.6	-	-	-	-
Department of Treasury Administered expenses		(16)	(38,606)	(50,000)	(50,000)
Total		(16)	(38,606)	(50,000)	(50,000)
Health and Hospitals Fund - Northern Territory BreastScreen Australia project
Department of Health and Ageing Administered expenses	10.6	-	-	-	-
Department of Treasury Administered expenses		(1,200)	(600)	1,200	600
Total		(1,200)	(600)	1,200	600
Outcome 13: Acute Care
National Health Reform Agreement - revised funding arrangements
Department of Health and Ageing Administered expenses	13.3	-	-	-	-
Department of the Treasury Administered expenses		-	-	-	21,000
Total		-	-	-	21,000
Mersey Community Hospital Tasmania - ongoing commitment
Department of Health and Ageing Administered expenses	13.3	-	2,226	4,530	-
Total		-	2,226	4,530	-
Outcome 14: Biosecurity and Emergency Response
Delivery of Human Quarantine Services
Department of Health and Ageing Administered expenses	14.1	(600)	-	-	-
Department of the Treasury Administered expenses		600	-	-	-
Total		-	-	-	-
Whole of Government Measures1
Reducing the cost of Government administration - one-off efficiency dividend
Departmental expenses
Health and Ageing		-	(14,063)	(13,688)	(13,095)
Australian Institute of Health and Welfare		-	(410)	(412)	(415)
Australian National Preventive Health Agency		-	(140)	(144)	(136)
Australian Organ and Tissue Donation and Transplantation Authority		-	(151)	(152)	(153)
Australian Radiation Protection and Nuclear Safety Agency		-	(347)	(347)	(352)
Cancer Australia		-	(324)	(299)	(300)
Food Standards Australia New Zealand		-	(483)	(479)	(483)
National Blood Authority		-	(124)	(123)	(125)
National Health and Medical Research Council		-	(1,038)	(1,043)	(1,052)
Private Health Insurance Ombudsman		-	(48)	(48)	(49)
Professional Services Review		-	(148)	(149)	(151)
Total		-	(17,276)	(16,884)	(16,311)
Departmental Capital Budgets - savings
Departmental expenses
Health and Ageing		-	(897)	(905)	(2,148)
Australian Radiation Protection and Nuclear Safety Agency		-	(485)	(489)	(511)
National Blood Authority		-	(100)	(97)	(163)
National Health and Medical Research Council		-	(20)	(20)	(47)
Private Health Insurance Ombudsman		-	(15)	(15)	(21)
Professional Services Review		-	(8)	(8)	(8)
Total		-	(1,525)	(1,534)	(2,898)
Other Portfolio Measures1
Digital Productivity - Expansion of telehealth services through trials2
(Department of Broadband, Communications and the Digital Economy)
Department of Health and Ageing
Administered expenses	10.2	nfp	nfp	np	-
Departmental expenses		nfp	nfp	nfp	-
Total		nfp	nfp	nfp	-
Better Targeting of Immunisation Incentives
(Families, Housing, Community Services and Indigenous Affairs)
Department of Health and Ageing
Administered expenses	1.5	1,175	2,479	6,583	7,191
Departmental expenses		274	383	85	37
Total		1,449	2,862	6,668	7,228
Clean Energy Future - Helping Households - tax cuts and increased payments
(Treasury)
Department of Health and Ageing Departmental expenses	4.6	174	-	-	-
Total		174	-	-	-
Family Tax Benefit - Cease fortnightly payments to families who have zero entitlement for two consecutive years
(Families, Housing, Community Services and Indigenous Affairs)
Department of Health and Ageing Administered expenses	3.1	-	(287)	(969)	(706)
Total		-	(287)	(969)	(706)
National Carer Strategy
(Families, Housing, Community Services and Indigenous Affairs)
Department of Health and Ageing Administered expenses	2.2	61	66	71	78
	2.4	107	103	111	114
	3.1	8	7	8	8
Total		176	176	190	200
Personal income tax - 50 percent tax discount for interest income – deferral3
(Treasury)
Department of Health and Ageing Administered expenses	2.2	-	(2)	(778)	-
	3.1	-	(547)	(1,212)	-
Total		-	(549)	(1,990)	-
Personal income tax - standard deduction for work related expenses and the cost of managing tax affairs – deferral3
(Treasury)
Department of Health and Ageing Administered expenses	2.2	-	-	(200)	-
	3.1	-	(537)	(1,463)	-
Total		-	(537)	(1,663)	-
Tasmanian Forest Industry - adjustment package
(Department of Agriculture, Fisheries and Forestry)
Department of Health and Ageing Administered expenses	11.1	-	500	-	-
Total		-	500	-	-

Prepared on a Government Financial Statistics (fiscal) basis.
1 - The Department is not the lead agency for these measures. Health & Ageing portfolio impacts only are shown in this table.
2 - Funding included as a decision taken but not yet announced in the 2011-12 Budget.
3 - Numbers for this measure have been revised since the 2011-12 MYEFO

Top of page

1.4 Additional Estimates and Variations

The following tables detail the changes to the resourcing for the Department of Health and Ageing at Additional Estimates, by outcome. Table 1.3 details the Additional Estimates and variations resulting from new measures since the 2011-12 Budget in Appropriation Bills No.3 and No.4. Table 1.4 details Additional Estimates or variations through other factors, such as parameter adjustments.

Table 1.3: Additional estimates and variations to outcomes from measures since 2011-12 Budget

For details to the changes to the resourcing for the Department of Health and Ageing at Additional Estimates from measures please refer to each outcome chapter in Section 2.

Table 1.4: Additional estimates and variations to outcomes from other variations

For details to the changes to the resourcing for the Department of Health and Ageing at Additional Estimates from other variations please refer to each outcome chapter in Section 2.

1.5 Breakdown of Additional Estimates by Appropriation Bill

The following tables detail the Additional Estimates sought for the Department of Health and Ageing through Appropriation Bills No.3 and No.4.

Table 1.5: Appropriation Bill (No. 3) 2011-12

	2010-11 Available1 $'000	2011-12 Budget $'000	2011-12 Revised $'000	Additional estimates $'000	Reduced estimates $'000
Administered Items
Outcome 12 Population Health	262,032	367,868	360,103	4,058	(11,823)
Outcome 2 Access to Pharmaceutical Services	617,840	657,638	653,093	-	(4,545)
Outcome 3 Access to Medical Services	109,617	107,374	107,874	500	-
Outcome 4 Aged Care and Population Ageing	847,603	800,052	684,114	-	(115,938)
Outcome 5 Primary Care	815,349	892,228	854,845	-	(37,383)
Outcome 6 Rural Health	184,610	92,437	92,423	-	(14)
Outcome 7 Hearing Services	363,368	410,660	386,774	-	(23,886)
Outcome 8 Indigenous Health	641,131	722,824	713,545	-	(9,279)
Outcome 9 Private Health	14,624	3,913	3,913	-	-
Outcome 10 Health System Capacity and Quality	260,288	554,285	546,106	-	(8,179)
Outcome 11 Mental Health	186,660	292,920	292,932	12	-
Outcome 12 Health Workforce Capacity	711,619	1,120,888	1,120,888	-	-
Outcome 13 Acute Care	140,242	155,232	155,817	585	-
Outcome 14 Biosecurity and Emergency Response	26,991	26,279	25,679	-	(600)
Outcome 153 Sport Performance and Participation Participation	22,974	-	-	-	-
Total administered items	5,204,948	6,204,598	5,998,106	5,155	(211,647)
Departmental Programs
Outcome 1 Population Health	58,867	67,825	78,582	10,757	-
Outcome 2 Access to Pharmaceutica Services	52,935	46,431	46,431	-	-
Outcome 3 Access to Medical Services	42,306	37,963	37,963	-	-
Outcome 4 Aged Care and Population Ageing	194,491	198,646	205,943	7,297	-
Outcome 5 Primary Care	37,670	29,818	29,818	-	-
Outcome 6 Rural Health	10,732	5,227	5,227	-	-
Outcome 7 Hearing Services	8,144	11,550	11,550	-	-
Outcome 8 Indigenous Health	59,979	55,693	55,693	-	-
Outcome 9 Private Health	11,565	12,172	12,172	-	-
Outcome 10 Health System Capacity and Quality	24,466	24,500	24,951	451
Outcome 11 Mental Health	11,574	17,776	17,776	-	-
Outcome 12 Health Workforce Capacity	24,831	26,867	26,867	-	-
Outcome 13 Acute Care	39,499	42,139	52,657	10,518	-
Outcome 14 Biosecurity and Emergency Response	28,307	23,629	23,629	-	-
Outcome 153 Sport Performance and Participation	2,518	-	-	-	-
Total departmental appropriation	607,884	600,236	629,259	29,023	-
Total Appropriation Administered and Departmental Bill No. 3	5,812,832	6,804,834	6,627,365	34,178	(211,647)

1 - The 2010-11 available appropriation is included to allow a comparison of this year's appropriation with what was made available for use in the previous year. Available appropriation is the amount available to be drawn down, and is equal to: Budget Appropriation + Additional Estimates Appropriation + DIAB + AFM – Savings - Rephasings - Other Reductions +/- Section 32.
2 - The reduced estimate of $11.823 under Outcome 1 (administered) represents a transfer under section 32 of the FMA Act to the Australian National Preventive Agency for the National Binge Drinking Strategy.
3 - The Sports function transferred to the Department of the Prime Minister and Cabinet as a result of the revised Administrative Arrangement Orders of 14 September 2010.

Top of page

Table 1.6: Appropriation Bill (No. 4) 2011-12

	2010-11 Available1 $'000	2011-12 Budget $'000	2011-12 Revised $'000	Additional Estimates $'000	Reduced Estimates $'000
Payments to States, ACT, NT and Local Government
Outcome 1 Population Health	7,841	25,793	25,793	-	-
Outcome 152 Sport Performance and Participation	2,150	-	-	-	-
Total	9,991	25,793	25,793	-	-
Non-operating
Equity injections	100,311	24,613	12,289	-	12,324
Loans	-	-	-	-	-
Administered assets and liabilities	27,910	535	535	-	-
Total non-operating	128,221	25,148	12,824	-	12,324
Total Appropriation Bill No. 4	138,212	50,941	38,617	-	12,324

1 - The 2010-11 available appropriation is included to allow a comparison of this year's appropriation with what was made available for use in the previous year. Available appropriation is the amount available to be drawn down, and is equal to: Budget Appropriation + Additional Estimates Appropriation + DIAB + AFM – Savings - Rephasings - Other Reductions +/- Section 32.
2 - The Sports function transferred to the Department of the Prime Minister and Cabinet as a result of the revised Administrative Arrangement Orders of 14 September 2010.

Section 2: Revisions to Agency Resources and Planned Performance

2.1 Resources and Performance Information

The department’s activities, resourcing and performance reporting are organised under a structure of 14 outcomes. These outcomes represent the results or impacts on the community that the Government wishes to achieve. There has been no change to the department’s outcome statements since the 2011-12 Health and Ageing Portfolio Budget Statements (PBS).

Revisions to Performance Information since the 2011-12 Budget are detailed in the Outcome chapters in this section. Changes have been made to the Performance Information for Outcomes 1, 2, 3, 5, 6, 7, 8 and 12.

Cross Outcome Variations

The table below shows variations to the departmental forward estimates not notionally allocated to an outcome.

Table 2: Cross Outcome Variations

	2011-12 $'000	2012-13 $'000	2013-14 $'000	2014-15 $'000
Cross-agency departmental variations
Changes in departmental appropriations
Appropriation Bill No. 3
Measure - Reducing the cost of Government administration - one-off efficiency dividend	-	(14,063)	(13,688)	(13,095)
Measure - Departmental Capital Budgets - savings	-	(897)	(905)	(2,148)
Price parameter adjustments1 - operational	-	539	1,051	502
Price parameter adjustments1 - DCB2	-	4	9	16
Movement of Funds - DCB2	-	4,410	-	-
	-	(10,007)	(13,533)	(14,725)

1 - See explanation in glossary.
2 - Departmental Capital Budget(DCB).

Top of page