Effective border management that, with minimal disruption to legitimate
trade and travel, prevents illegal movement across the border, raises
revenue and provides trade statistics.
Effectiveness measures
Figure 6: Outcome performance against targets set
in 2000-01 Portfolio Budget Statements
Effectiveness indicators
Measures
Target*
Actual
Cargo facilitation+
Proportion of electronically lodged entries
where an authority to deal is transmitted within 15 minutes of receipt
of entry payment and finalisation of entry details
97%
98.06%
Passenger facilitation
National proportion of arriving international
passengers processed through the Entry Control Point within 30 minutes
of joining the queue (standard agreed with Government is 95%)
95%
97%
Illicit drugs
Trends in the number and weight of seizures
**
See figure 9 & 10
Other prohibited goods
Trends in the number of detections and/or seizures
of other prohibited imports and exports from international air passengers
**
See figure 12
Civil maritime surveillance
Undetected vessels subsequently found to have
breached the Australian border
**
See figure 19
Revenue collection+
Total Duty, GST and other significant revenues
collected
Cash collected
#$6 395 m (nett)
$6 671.7 m
Revenue deferred+
Total GST revenues deferred
#$11 500 m
$10 925.2 m
Industry schemes+
Total Duty forgone^ in respect of:
Tariff concession
$380-400 m
$374.5 m
Cheese and curd quota
$9 m
$8.9 m
Drawbacks
$78 m
$70.3 m
Revenue compliance+
Revenue adjustments as a result of compliance
activity:
Recoveries
$12 m
$14.7 m
Refunds
$0.5 m
$4.3 m
Customs decisions
Rates of appeal against decisions where the
original decision by Customs is upheld
The prices of the outcome and outputs for Customs are calculated using
activity-based costing information and attributed across the outputs to
provide a complete picture of the resources dedicated to each task. The
prices represent the full cost of the outputs, including overheads such
as information technology and operating expenses.
Portfolio Budget Statements
The total price of outputs in the 2000-01 Budget was $645.702 million,
including an appropriation of $424.887 million and revenue from other
sources of $220.815 million. This included an equity injection of $2.369
million to complete the purchase of x-ray equipment under the Government’s
National Illicit Drug Strategy.
Customs had two measures in the 2000-01 Budget.
Output Pricing Review of departmental resourcing – reduction in funding
of $2.5 million and $5 million ongoing, with savings expected from plans
for competitive tendering and contracting.
Unauthorised arrivals in Australia – additional resourcing for the
lease of a charter vessel to assist with people-smuggling related activities.
Portfolio Additional Estimates Statements
Following Portfolio Additional Estimates, the total price of outputs
was revised to
$644.081 million (down $1.621 million). The appropriation for Customs
and revenue from other sources were revised to $422.207 million (down
$2.680 million) and $221.874 million (up $1.059 million) respectively.
See figure x for further information.
Additional appropriations were allocated for a number of measures and
other variations through Additional Estimates. They were:
storage of imported handguns before sale – additional funding of
$0.384 million for the costs of setting up and administering the storage
of imported handguns, following the tightening of the Customs (Prohibited
Imports) Regulations 1956 on 17 August 2000. This affected the price
for output 1.
Import Credit Scheme (ICS) – The Government extended the ICS to Fiji
for three months to 30 September 2000. The cost of this measure (a reduction
of $1.0 million in administered revenue) was offset from funds allocated
to the Textile, Clothing and Footwear Strategic Investment Program.
This did not affect the price of any outputs.
Business Franchise Fee (BFF) Safety Net – $0.975 million for additional
cost incurred in maintaining the BFF Safety Net as determined under
the States Grants (General Purposes) Act 1994. This affected
the price for output 4.
Comcover – additional funding of $0.342 million to cover the costs
of the 2000-01 Comcover premium. This affected the price of all outputs.
Several revisions were made to the performance information used by Customs
to assess its achievement against its outcome and outputs.
Actual expenditure
Details on the actual expenditure of Customs during 2000-01 are shown
in figure 7 below. Further informtaion on this expenditure is available
in the Financial statements
and accompanying notes.
Figure 7: Resources for the Customs outcome
(1)
(2)
Variation
Budget*
Actual expenses
(column 2 minus column 1)
Budget**
2000-01
2000-01
2001-02
$’000
$’000
$’000
$’000
Administered Expenses
260
4 655
4 395
260
(including third party outputs)
Total Administered Expenses
260
4 655
4 395
260
Price of Agency Outputs
Output 1 – Facilitation
of the legitimate movement of goods across the border, while intercepting
prohibited and restricted imports and exports
213 885
235 327
21 442
264 831
Output 2 – Facilitation
of the legitimate movement of people across the border, while identifying
illegal movements
69 935
87 111
17 176
79 315
Output 3 – Civil
maritime surveillance and response#
202 228
174 291
-27 937
205 797
Output 4 – Administration
of Customs duty and indirect taxes, other border-related revenue collections,
and import/export statistics.
151 698
116 361
-35 337
148 434
Output 5 – Anti-dumping
and countervailing administration
6 335
4 363
-1 972
7 305
Total Price of Outputs***
644 081
617 454
-26 627
705 682
Revenue from Government (Appropriation)
for Agency Outputs
422 207
422 207
487 226
Revenue from other sources
221 874
203 810
-18 064
218 456
Total Price of Outputs
644 081
626 017
-18 064
705 682
TOTAL FOR OUTCOME 1
644 341
622 109
-22 232
705 942
(Total Price of Outputs and Administered
Expenses)
2000-01
2001-02
Average Staffing Level (Number)
4 171
4 990
*
Full-year budget, including additional estimates.
**
Budget as announced in the Portfolio Budget Statements.
***
Total Price of Outputs compares the total of the
prices derived from estimated revenue to the total of the prices derived
from actual expenses. The actual expenses include the Capital Use
Charge. The difference between the actual total price of outputs and
the actual total revenue for outputs reflects the operating surplus
of Customs for the year.
#
Price includes the resources received free of charge
from the Australian Defence Force.
As Customs has its responsibilities combined into one outcome, this annual
report provides a more detailed performance analysis of the five outputs
that contribute to the Customs outcome.
In addition, the Australian National Audit Office’s (ANAO’s) inquiry
into Coastwatch, tabled in April 2000, recommended that Customs specifically
identify the costs involved in providing the Coastwatch function. This
information is shown in the detailed analysis of output
3. Further information on the ANAO’s inquiry into Coastwatch is also
available in output 3.
