ATTACHMENT C
A SET OF ACCOUNTS
Introduction
1.
This Attachment presents a set of accounts for the Indian Ocean Territories
(IOTs). The Commission’s approach to calculating an expenditure requirement relies on
information about the full range of government expenditure and revenue raising. However,
a comprehensive set of accounts does not exist for the IOTs. In its 1995 Christmas Island
inquiry, the Commission recommended that such accounts be maintained but this has not
been done.
2.
For this inquiry, the Commission has again compiled its own set of accounts.
Comparability Over Time
3.
The Commission has prepared a set of accounts for each Island. They are on
an accrual basis and include both capital and operating transactions. Expenditures and
revenues are dissected into Commonwealth, State and local government type services for
the years 1996-97 to 1998-99.
4.
The majority of the data were collected from DOTRS. It was able to provide
information on the range of activities of the Territories Office Canberra, the Territories
Office Perth (including SDAs) and the Island Administrations. Other data were obtained
from other organisations providing services on the Islands, such as other Commonwealth
agencies (ie. Centrelink and Parks Australia) and the Shire administrations.
5.
1998-99 data were supplemented by data from a draft report prepared for
DOTRS by Ernst and Young. The report examined the accounts of DOTRS (Canberra
Office and Perth Office), the Christmas Island Administration and the Cocos (Keeling)
Islands Administration, and provided an estimate of the full accrual-based costs of service
delivery on the IOTs. The figures were estimates because most were based on actual
expenditures to 30 May 1999 plus estimates for the final month of the financial year. The
Ernst and Young report includes the cost of salaries and support services provided by
DOTRS.
308
A Set of Accounts
6.
Given the comprehensive nature of the Ernst and Young consultancy, we
believe its data provide the most accurate assessment of service provision costs. Where
necessary, we have used these data to estimate missing information for earlier years.
Problems Encountered in Compiling the Accounts
7.
A number of problems were encountered in compiling the accounts. First,
some financial information is likely to be missing because not all Commonwealth agencies
were able to supply information on their activities on the Islands.
8.
Second, the estimation process used by Ernst and Young involved allocating
each person’s time and salary across a number of functions using fixed percentages. Such a
process may not always produce meaningful functional expenditures.
9.
Third, not all data were available for all years. Where possible, missing data
were estimated using comparable data for other years.
10.
As a result, there are large movements in numbers year to year. Data were
most difficult to obtain for the early years and it is likely that part of the movement is due to
suspect data in those years.
The Cocos (Keeling) Islands
11.
The total cost of providing services on the Cocos (Keeling) Islands in
1998-99 was $22.1 million. Operating expenditure was $19.7 million and capital
expenditure was $2.4 million. Revenue raised on the Cocos (Keeling) Islands was
$2.1 million. The majority of this revenue, $1.1 million, was Commonwealth-type revenue.
Section 31 revenue contributed $0.9 million and State-type revenue contributed only
$0.1 million.
Christmas Island
12.
The total cost of providing services on Christmas Island in 1998-99 was
$51.7 million. Operating expenditure was $43.7 million and capital expenditure was
$8.0 million. Revenue raised on Christmas Island was $18.8 million. The majority of this
revenue was Commonwealth-type revenue, $8.9 million and Section 31 revenue,
$5.5 million. State-type revenue contributed $4.4 million.
309
Attachment C
Table C-1
COST OF PROVIDING SERVICES, THE COCOS (KEELING) ISLANDS
Commonwealth Services
Airport
Air Services
Air Service Subsidy
Broadcasting
Customs
Fisheries and Quarantine
Immigration
Social Security
sub-total
State-type Services
DOTRS Administration Costs
Government Primary Education
Government Secondary Education
Adult Education
Health
Police
Administration of Justice
Public Safety and Emergency Services
Legal Aid
Welfare Services
Culture and Recreation
Housing
Power Supply
Water Supply
Sewerage Services
Services to Industry
Public Transport
Marine and Harbour
Tourism
Local Roads
Regulatory and Other Services
Land Administration
National Park Management and Environment
Protection
Other Services
sub-total
Grants to Shire of Cocos (Keeling) Islands
General Purpose Grants
Identified Road Grants
Supplementary Grants
Other Road Grants (Central Road Authority
Funding)
Other Grants
sub-total
Accrual Items
Depreciation
Non-cash items
sub-total
Total
Source: Commonwealth Grants Commission.
310
1996-97
1997-98
1998-99
$’000
164
0
0
0
27
58
28
1 590
1 867
$’000
157
10
500
0
35
77
37
1 622
2 438
$’000
747
288
1 002
20
36
147
37
1 244
3 521
1 007
1 923
413
67
1 117
281
123
90
73
0
161
287
1 737
300
100
108
1 465
120
0
0
1 001
4
391
1 007
1 611
442
215
1 216
207
159
101
100
8
76
364
1 475
300
100
16
1 270
98
15
1
1 427
4
369
1 007
1 771
515
140
1 708
328
147
119
57
85
61
464
1 029
313
122
66
1 282
379
18
2
1 024
31
366
409
11 178
413
10 994
570
11 605
573
49
0
257
609
58
0
306
701
58
533
286
0
880
0
973
250
1 828
2 719
17
2 736
16 661
2 719
17
2 736
17 141
2 719
17
2 736
19 691
A Set of Accounts
Table C-2
CAPITAL EXPENDITURE, THE COCOS (KEELING) ISLANDS
1996-97(a)
1997-98
1998-99
$’000
118
360
115
21
802
0
333
138
28
396
851
211
3 374
$’000
5
0
6
0
285
1
49
964
356
33
22
396
2 117
$’000
7
0
1
0
1
2
537
23
119
52
824
879
2 445
Airport
Communications
Environment Protection
Health
Police
Employee Housing
Power Supply
Water Supply
Sewerage
Marine and Harbour
Regulatory and Other Services
Transport
Total
(a)
Capital expenditures were only available for the three year period 1994-95 to 1996-97. One third of those
figures are used in this table.
Source: DOTRS.
311
Attachment C
Table C-3
REVENUE RAISED, THE COCOS (KEELING) ISLANDS
Commonwealth-type Revenue
Income Tax
Company Tax
Fringe Benefits Tax
Capital Gains Tax
Medicare Levy
Prescribed Payments Tax
Excise Duty
Customs Duty
Wholesales Sales Tax
Property Sales Revenue
Fisheries Licences
Quarantine
sub-total
State-type Revenue
Payroll Taxation
Land Revenue
Stamp Duty on Conveyances
Financial Institutions Duty
Gambling Taxation
Insurance Taxation
Vehicle Registration Fees and Taxes and
Drivers Licences
Stamp Duty on Motor Vehicle Registrations
and Transfers
Revenue Replacement Payments - Petroleum
Revenue Replacement Payments - Tobacco
Revenue Replacement Payments - Alcohol
Other Taxes
sub-total
Section 31 Revenue
Airport
Health
Housing
Marine/Port
Power Supply
Water Supply
Sewerage
Regulatory Services
Other
sub-total
Total
Source: Commonwealth Grants Commission.
312
1996-97
1997-98
1998-99
$’000
809
0
15
1
77
0
exempt
exempt
exempt
0
3
4
909
$’000
1 026
1
15
2
74
1
exempt
exempt
exempt
890
3
18
2 028
$’000
1 026
2
15
2
74
2
exempt
exempt
exempt
0
3
11
1 135
27
exempt
0
0
0
1
23
32
0
0
5
1
4
23
30
3
0
1
2
6
23
5
3
2
exempt
10
24
13
104
exempt
15
27
13
124
exempt
16
20
18
121
93
10
369
53
511
0
0
181
242
1 458
2 472
74
75
759
0
425
0
0
139
0
1 472
3 624
50
66
227
0
542
0
0
0
0
884
2 140
A Set of Accounts
Table C-4
COST OF PROVIDING SERVICES, CHRISTMAS ISLAND
Commonwealth Services
Airport
Air Services
Air Service Subsidy
Broadcasting
Customs
Fisheries and Quarantine
Immigration
Social Security
sub-total
State-type Services
DOTRS Administration Costs
Government Primary Education
Government Secondary Education
Adult Education
Health
Police
Administration of Justice
Public Safety and Emergency Services
Legal Aid
Welfare Services
Culture and Recreation
Housing
Power Supply
Water Supply
Sewerage Services
Services to Industry
Public Transport
Marine and Harbour
Tourism
Local Roads
Regulatory and Other Services
Land Administration
National Park Management and Environment
Protection
Other Services
sub-total
Grants to Shire of Christmas Island
General Purpose Grants
Identified Road Grants
Supplementary Grants
Other Road Grants (Central Road Authority
Funding)
Other Grants
sub-total
Accrual Items
Depreciation
Non-cash items
sub-total
Total
Source: Commonwealth Grants Commission.
313
1996-97
1997-98
1998-99
$’000
1 205
40
0
127
136
156
173
2 468
4 306
$’000
1 068
51
500
130
167
164
206
2 462
4 747
$’000
1 055
294
999
83
150
117
188
1 446
4 333
2 674
4 141
1 168
75
3 530
1 078
355
99
73
355
142
1 144
4 745
577
455
272
40
1 120
0
105
2 583
44
1 580
2 674
4 179
1 439
228
3 279
1 136
308
106
100
462
85
1 033
5 387
357
362
216
48
713
35
143
2 502
45
1 740
2 674
4 280
1 407
283
3 058
961
359
185
162
502
55
1 046
4 362
318
417
304
29
600
36
351
894
45
1 805
805
27 158
707
27 284
913
25 046
1 501
117
0
337
1 426
136
0
275
1 451
137
787
289
3
1 958
3
1 841
4
2 668
11 481
149
11 631
45 053
11 481
149
11 631
45 503
11 481
149
11 631
43 677
Attachment C
Table C-5
CAPITAL EXPENDITURE, CHRISTMAS ISLAND
1996-97(a)
1997-98
1998-99
$’000
72
- 26
68
1 402
- 147
14
3 342
5 677
708
5
- 114
24
2 263
13 289
$’000
- 43
0
0
2
0
203
360
1 285
119
68
1 603
596
194
4 388
$’000
0
0
0
0
0
2
2 556
1 297
1 160
0
2 387
472
154
8 027
Airport
Communications
Environment Protection
Education
Health
Police
Housing
Power Supply
Water Supply
Sewerage
Marine and Harbour
Regulatory and Other Services
Local Government
Total
(a) Capital expenditures were only available for the three year period 1994-95 to 1996-97. One third of those figures are
used in this table.
Source: DOTRS.
314
A Set of Accounts
Table C-6
REVENUE RAISED, CHRISTMAS ISLAND
Commonwealth-type Revenue
Income Tax
Company Tax
Fringe Benefits Tax
Capital Gains Tax
Medicare Levy
Prescribed Payments Tax
Excise Duty
Customs Duty
Wholesales Sales Tax
Property Sales Revenue
Fisheries Licences
Quarantine
sub-total
State-type Revenue
Payroll Taxation
Land Revenue
Stamp Duty on Conveyances
Financial Institutions Duty
Gambling Taxation
Insurance Taxation
Vehicle Registration Fees and Taxes and
Drivers Licences
Stamp Duty on Motor Vehicle Registrations
and Transfers
Revenue Replacement Payments - Petroleum
Revenue Replacement Payments - Tobacco
Revenue Replacement Payments - Alcohol
Other Taxes
Mining Revenue
Rainforest Rehabilitation Levy
sub-total
Section 31 Revenue
Airport
Health
Housing
Marine/Port
Power Supply
Water Supply
Sewerage
Other
sub-total
Total
Source: Commonwealth Grants Commission.
315
1996-97
1997-98
1998-99
$’000
5 941
1 685
242
14
498
259
exempt
exempt
exempt
660
8
0
9 307
$’000
5 548
1 681
408
76
416
123
exempt
exempt
exempt
765
8
0
9 025
$’000
5 548
2 070
349
76
416
38
exempt
exempt
exempt
402
8
0
8 906
1 006
exempt
7
8
18
35
399
1 291
7
19
9
1
41
262
683
45
6
87
71
47
157
40
65
26
exempt
119
71
3
1 311
947
3 964
exempt
141
59
439
1 273
947
4 554
exempt
92
45
750
1 422
1 000
4 432
498
76
1 046
1 450
3 561
193
143
103
7 071
20 342
378
86
1 055
643
3 304
181
172
175
5 996
19 575
274
85
1 238
575
2 868
192
179
61
5 470
18 808