Online version of the 2012-13 Department of Health and Ageing Annual Report

Financial Performance - Administered

Page last updated: 29 October 2013

Administered Income

Income administered on behalf of Government

Total 2012-13 administered income was $1.9 billion. Major items include:

  • other revenue of $1.6 billion, which relates to Health and Hospital Fund receipts ($0.7 billion), collections from Private Health Insurance Administration Council (PHIAC) for private health insurance levies ($0.4 billion) and recoveries from states and territories for Residential and Care Services ($0.2 billion); and
  • High Cost Drugs recoveries of $0.3 billion made under cost sharing arrangements with pharmaceutical companies.

Administered Expenses

Total administered expenses increased by $1.5 billion

For the 2012-13 reporting period total expenses administered on behalf of the Commonwealth was $51.2 billion compared to the prior year expenses of $49.7 billion, an increase of $1.5 billion:

  • personal benefits expense remained consistent at $33.7 billion ($33.6 billion in 2011-12). 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 4.2% to $9.4 billion ($9.1 billion in 2011-12). 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 14.5% to $7.0 billion ($6.1 billion in 2011-12) in line with Budget expectations. The increase was in part due to the Home and Community Care (HACC) program moving to the Commonwealth from the states and territories other than Victoria and Western Australia and increased funding for the Victorian Local Hospital Network;
  • supplier expenses were $0.5 billion consistent with 2011-12; and
  • other expenses of $0.4 billion (consistent with 2011-12), the majority of which relates to the transfer of levies from the Private Health Insurance Administration Council (PHIAC) to the Official Public Account (OPA).

Assets and Liabilities – Administered

Total administered assets remained constant at $1.0 billion

Total administered assets remained constant at $1.0 billion. Major administered assets comprise receivables of $0.4 billion, investments of $0.2 billion (including Health Workforce Australia) and inventories of $0.2 billion.

Total administered liabilities decreased by $0.5 billion

Total administered liabilities decreased by $0.5 billion to $2.9 billion ($3.4 billion in 2011-12) predominantly as a result of lower personal benefits payable under arrangements with the Department of Human Services, as well as lower grants payable to non-profit organisations.