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

Financial Performance - Administered

Page last updated: 17 July 2019

The Department’s combined financial statements

The Department’s combined financial statements include the financial statements of the Therapeutic Goods Administration (TGA) and two departmental special accounts for the Office of the Gene Technology Regulator (OGTR) and the National Industrial Chemicals Notification and Assessment Scheme (NICNAS).

Machinery of Government changes

There were no Machinery of Government changes in 2014-15, however, the 2013-14 financial year includes the impacts of the September 2013 Administrative Arrangements Order (AAO) changes. These changes included the transfer of the Ageing and Aged Care function and some Indigenous functions to the Department of Social Services and the Department of the Prime Minister and Cabinet respectively, and the Sports function returning to the Health portfolio. As a consequence, comparability of 2014-15 financial information to prior years is reduced.

Income administered on behalf of Government

Revenue was $2.2 billion

Total 2014-15 administered income was $2.2 billion. Major items include:

  • other revenue of $1.4 billion, which predominantly relates to Health and Hospitals Fund receipts ($0.7 billion), collections from Private Health Insurance Administration Council (PHIAC) for private health insurance levies ($0.4 billion); and
  • High Cost Drugs recoveries of $0.7 billion made under cost sharing arrangements with pharmaceutical companies.

Expenses administered on behalf of Government

Total expenses administered on behalf of Government were $43.3 billion

For the 2014-15 reporting period, total expenses administered on behalf of the Commonwealth were $43.3 billion compared to $44.9 billion in the previous year, a decrease of $1.6 billion (3.6%):

  • personal benefits expense increased by $1.4 billion to $36.6 billion ($35.2 billion in 2013-14). Personal benefits primarily relate to Medicare Benefits and the Pharmaceutical Benefits Scheme. These expenses fund access to medical services and medicines;
  • subsidies expense decreased by 95% to $0.1 million ($2.5 billion in 2013-14). In prior years, subsidies primarily related to residential, aged and community care programmes which have been transferred to the Department of Social Services following the September 2013 AAO. Subsidies now are limited to the medical indemnity and midwife schemes;
  • grants expense amounted to $5.4 billion, a reduction of 12.4% ($6.2 billion in 2013-14). Key recipients of the grant programmes are the non-profit sector, various jurisdictions of local and State Governments as well as the National Blood Authority and PHIAC. The decrease from 2013-14 is as a result of the September 2013 AAO;
  • supplier expenses of $0.5 billion were consistent with 2013-14;
  • payments to corporate Commonwealth entities increased by 51.0% ($0.2 billion in 2013-14). This increase is primarily due to changes arising from the September 2013 AAO, particularly the inclusion of a full year of payments to the Australian Sports Commission offset by the closure of Health Workforce Australia (HWA) and the General Practice Education and Training Pty Ltd (GPET); and
  • other expenses of $0.5 billion (consistent with 2013-14), primarily relates to the transfer of levies from PHIAC to the Official Public Account (OPA).

Administered assets and liabilities

Total administered assets were $1.3 billion

Total administered assets were $1.3 billion. Major administered assets comprise investments of $0.4 billion which has reduced from 2013-14 due to the closure of HWA and GPET. Other assets include cash of $0.3 billion, receivables of $0.3 billion, and inventories of $0.2 billion which are consistent with 2013-14.

Total administered liabilities were $2.7 billion

Total administered liabilities of $2.7 billion are relatively consistent with 2013-14 and are mainly comprised of estimated amounts outstanding for personal benefit payments ($1.9 billion), subsidies ($0.4 billion) and grants ($0.4 billion).

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