Online version of the 2014-15 Department of Health Annual Report

Financial Performance - Departmental

Page last updated: 16 October 2015

Departmental operating result

The Department of Health recorded a combined 2014-15 operating deficit of $37.2 million under the net cash appropriation model, introduced by the Commonwealth in 2010-11 (compared with $40.5 million in 2013-14). On elimination of unfunded depreciation, the combined group recorded an operating surplus of $0.8 million.

Departmental revenue

Revenue from Government decreased by 17% to $479.9 million

During 2014-15, revenue from Government decreased by 17% ($95.6 million) to $479.9 million. This reduction was primarily relating to the full year impact of the September 2013 AAO changes.

Own source revenue increased by 6% to $167.6 million

During 2014-15, revenue from the sale of goods and rendering of services increased by 6% ($8.8 million) to $165.4 million primarily through an increase in the sale of goods and services in the Department’s cost recovery activities in the Therapeutic Goods Administration (TGA).

Other revenue primarily represents recoveries for payments made on behalf of portfolio agencies under a shared services arrangement.

Departmental expenses

Total departmental expenses decreased by 12% to $684.7 million in 2014-15

Operating expenses decreased by 12% ($90.4 million) during 2013-14 to $684.7 million (2013-14: $775.1 million).

Consistent with the variances above, the decrease is primarily relating to the full year impact of the September 2013 AAO changes.

Departmental assets and liabilities

Movement in departmental assets and liabilities

Total assets have decreased by $26.6 million to $370.3 million (2013-14: $397.0 million). There were a number of contributors to the variance including the revaluation of non-current assets and transfer of amounts in finalisation of the September 2013 AAO.

Total liabilities have reduced by $20.6 million to $276.2 million (2013-14: $296.8 million). The major contributors were principally the transfer of amounts in finalisation of the September 2013 AAO and reassessment of make-good provisions.