Portfolio Budget Statements 2011-12 - Federal Court

Federal Court of Australia

Federal Court of Australia

Section 1: Agency overview and resources

1.1 Strategic direction statement

The Federal Court of Australia is a superior court of record and a court of law and equity. It sits in all capital cities and elsewhere in Australia from time to time.

The Federal Court has jurisdiction to hear and determine any civil matter arising under laws made by the Federal Parliament, as well as any matter arising under the Constitution or involving its interpretation. The court also has original jurisdiction in respect of specific subject matter conferred by over 150 statutes of the Federal Parliament.

The Federal Court has a substantial and diverse appellate jurisdiction. It hears appeals from decisions of single judges of the court, decisions of the Federal Magistrates Court in non-family matters, decisions of the Supreme Court of Norfolk Island and certain decisions of state and territory supreme courts exercising federal jurisdiction.

The objectives of the Federal Court are to:

•  decide disputes according to law as quickly, inexpensively and efficiently as possible and, in so doing, to interpret the statutory law and develop the general law of the Commonwealth, so as to fulfil the role of a court exercising the judicial power of the Commonwealth under the Constitution

•  provide an effective registry service to the community, and

•  manage the resources allotted by parliament efficiently.

The Federal Court will continue to develop and implement a range of e-services initiatives to deliver users quicker, less expensive access to justice. Where practicable, these services will be developed and implemented in conjunction with other courts.

In May 2010, the Australian Government announced its decision to retain the Federal Magistrates Court to hear general federal law matters and to establish a new Military Court of Australia. Judges of the Federal Court with the requisite military experience or training may be offered dual commissions to the upper division of the proposed Military Court.

As the Federal Magistrates Court is being retained, funding that had been transferred from the Federal Magistrates Court to the Federal Court was returned to the Federal Magistrates Court with effect from 1 January 2011.

1.2 Agency resource statement

Table 1.1 shows the total resources from all sources.

Table 1.1: Agency resource statement—budget estimates for 2011–12 as at Budget May 2011

Estimate of
prior year / Actual
amounts / + / Proposed / = / Total / available
available in / at Budget / estimate / appropriation
2011–12 / 2011–12 / 2011–12 / 2010–11
$’000 / $’000 / $’000 / $’000
ORDINARY ANNUAL SERVICES1
Departmental appropriation
Prior year departmental
appropriation2 / 29,657 / – / 29,657 / 29,322
Departmental appropriation3 / – / 88,907 / 88,907 / 98,093
s 31 relevant agency receipts4 / – / 2,073 / 2,073 / 5,942
Total ordinary annual services / 29,657 / 90,980 / 120,637 / 133,357
OTHER SERVICES5
Departmental non-operating
Equity injections / – / – / – / 361
Total other services / – / – / – / 361
Total available annual
appropriations / 29,657 / 90,980 / 120,637 / 133,718
SPECIAL ACCOUNTS
Opening balance6 / – / – / – / –
Receipts / – / – / – / –
Total special accounts / – / – / – / –
Total net resourcing for agency / 29,657 / 90,980 / 120,637 / 133,718

All figures are GST exclusive.

1. Appropriation Bill (No. 1) 2011–12.

2. Estimated adjusted balance carried forward from previous year.

3. Includes an amount of $3.402m in 2011–12 ($6.246m in 2010–11) for the departmental capital budget (see Table3.2.5 for further details). For accounting purposes this amount has been designated as ‘contributions by owners’.

4. Section 31 relevant agency receipts—estimate.

5. Appropriation Bill (No. 2) 2011–12.

6. Estimated opening balance for special accounts (less ‘special public money’ held in accounts such as Other Trust Moneys accounts, Services for Other Governments and Non-Agency Bodies accounts, or Services for Other Entities and Trust Moneys accounts). For further information on special accounts,
see Table 3.1.2.

1.3 Budget measures

Budget measures relating to the Federal Court are detailed in Budget Paper No.2 and are summarised below.

The Federal Court’s appropriation has been reduced by $0.410m in 2011–12 due to the increase in the rate of the efficiency dividend.

Table 1.2: Agency 2011–12 Budget measures

2010–11 / 2011–12 / 2012–13 / 2013–14 / 2014–15
Program / $’000 / $’000 / $’000 / $’000 / $’000
Expense measures
Efficiency dividend—temporary increase in the rate / 1.1
Departmental expenses / – / (410) / (822) / (1,033) / (1,258)
Total expense measures / – / (410) / (822) / (1,033) / (1,258)
Capital measures
Efficiency dividend—temporary increase in the rate / 1.1
Departmental capital / – / (17) / (36) / (43) / (71)
Total capital measures / – / (17) / (36) / (43) / (71)

Prepared on a Government Finance Statistics (fiscal) basis.

Section 2: Outcomes and planned performance

2.1 Outcomes and performance information

Government outcomes are the intended results, impacts or consequences of actions by the government on the Australian community. Commonwealth programs are the primary vehicle by which government agencies achieve the intended results of their outcome statements. Agencies are required to identify the programs that contribute to government outcomes over the budget and forward years.

The Federal Court’s outcome is described below together with its related program, specifying the performance indicators and targets used to assess and monitor the performance of the Federal Court in achieving government outcomes.

Outcome 1: Through its jurisdiction, the Court will apply and uphold the rule of law to deliver remedies and enforce rights and in so doing, contribute to the social and economic development and well-being of all Australians

Outcome 1 strategy

During 2011–12 the Federal Court’s focus will be on continuing to enhance the services it delivers. The court will work to implement any changes arising from the Australian Government’s proposed reforms to the governance and structure of the federal courts in order to secure better access to justice for litigants and better use of publicly funded resources provided to the courts.

The Federal Court will continue to actively case manage the native title jurisdiction to accelerate the completion of matters.

The Federal Court will continue to develop and implement a range of e-services initiatives to deliver users quicker, less expensive access to justice. Where practicable, these services will be developed and implemented in conjunction with other courts.

Outcome 1 expense statement

Table 2.1 provides an overview of the total expenses for Outcome 1, by program.

Table 2.1: Budgeted expenses for Outcome 1

Outcome 1: Through its jurisdiction, the Court will apply and uphold the rule of law to deliver remedies and enforce rights and in so doing, contribute to the social and economic development and well-being of all Australians / 2010–11
Estimated / 2011–12
actual / Estimated
expenses / expenses
$’000 / $’000
Program 1.1: Federal Court Business
Departmental expenses
Departmental appropriation1 / 94,095 / 87,578
Expenses not requiring appropriation in the budget year2 / 20,539 / 20,124
Total expenses for Outcome 1 / 114,634 / 107,702
2010–11 / 2011–12
Average staffing level (number) / 316 / 316

Note: Departmental appropriation splits and totals are indicative estimates and may change in the course of the budget year as government priorities change.

1. Departmental appropriation combines ‘Ordinary annual services (Appropriation Bill No. 1)’ and ‘Revenue from independent sources (s31)’. The figure in 2010–11 excludes $3.694m for rent supplementation appropriated in 2010–11 but payable in 2009–10.

2. Expenses not requiring appropriation in 2010–11 include $15.144m for resources received free of charge and liabilities assumed by other agencies, $3.652m for depreciation and amortisation expenses and $1.350m for asset write-downs. In 2011–12, expenses not requiring appropriation include $3.828m for depreciation and amortisation expenses and $16.296m for resources received free of charge and liabilities assumed by other agencies.

Contributions to Outcome 1

Program 1.1: Federal Court Business
Program 1.1 objective
The primary objective of the Federal Court is to decide disputes according to law as quickly, inexpensively and efficiently as possible and, in so doing, interpret the statutory law and develop the general law of the Commonwealth, so as to fulfil the role of a court exercising the judicial power of the Commonwealth under the Constitution.
Program 1.1 expenses
The expenses attributable to the Federal Court program will decrease in 2011–12 and forward years due to the Australian Government’s decision to retain the Federal Magistrates Court to hear general federal law matters. Funds attributable to the Federal Magistrates Court have been returned to the Federal Magistrates Court from 1 January 2011.
2010–11 / 2012–13 / 2013–14 / 2014–15
Revised / 2011–12 / Forward / Forward / Forward
budget / Budget / year 1 / year 2 / year 3
$’000 / $’000 / $’000 / $’000 / $’000
Annual departmental expenses
Program support / 94,095 / 87,578 / 82,639 / 83,017 / 84,461
Expenses not requiring appropriation in
the budget year1 / 20,539 / 20,124 / 21,157 / 21,404 / 21,726
Total program expenses / 114,634 / 107,702 / 103,796 / 104,421 / 106,187

1. Expenses not requiring appropriation in the budget year are made up of depreciation expenses, resources received free of charge and liabilities assumed by other agencies.

Program 1.1 deliverables
The Federal Court will decide cases according to law as quickly, inexpensively and efficiently as possible.
Program 1.1 key performance indicators
The Federal Court’s key performance indicators are:
•  timely completion of cases: dispose of 85% of cases within 18 months of commencement (excluding native title cases), and
•  reduction in the number of matters over 18 months old.
2010–11 / 2011–12 / 2012–13 / 2013–14 / 2014–15
Revised / Budget / Forward / Forward / Forward
Key performance indicators / budget / target / year 1 / year 2 / year 3
Timely disposal of cases / 85% / 85% / 85% / 85% / 85%
Reduction in number of matters over 18months old / 20% / 19.5% / 19% / 18.5% / 18%

Section 3: Explanatory tables and budgeted financial statements

Section 3 presents explanatory tables and budgeted financial statements which provide a comprehensive snapshot of agency finances for the 2011–12 budget year. It explains how budget plans are incorporated into the financial statements and provides further details of the reconciliation between appropriations and program expenses, special accounts and government Indigenous expenditure.

3.1 Explanatory tables

3.1.1 Movement of administered funds between years

The Federal Court has not moved any administered funds between years.

3.1.2 Special accounts

Special accounts provide a means to set aside and record amounts used for specified purposes. Special accounts can be created by a Finance Minister’s Determination under the Financial Management and Accountability Act 1997 or under separate enabling legislation. Table3.1.2 shows the expected additions (receipts) and reductions (payments) for each account used by the Federal Court.

Table 3.1.2: Estimates of special account flows and balances

Opening / Closing
balance / Receipts / Payments / Adjustments / balance
2011–12 / 2011–12 / 2011–12 / 2011–12 / 2011–12
2010–11 / 2010–11 / 2010–11 / 2010–11 / 2010–11
Outcome / $’000 / $’000 / $’000 / $’000 / $’000
Other Trust Moneys— / 1 / 19 / 250 / 250 / – / 19
FMA Act s 20 (D) / 1 / 19 / 250 / 250 / – / 19
Litigants’ Fund Special / 1 / 40,393 / 5,000 / 5,000 / – / 40,393
Account—FMA Act s 20 (D) / 1 / 60,393 / 5,000 / 25,000 / – / 40,393
Total special accounts 2011–12 Budget estimate / 40,412 / 5,250 / 5,250 / – / 40,412
Total special accounts 2010–11 estimated actual / 60,412 / 5,250 / 25,250 / – / 40,412

(D) = Departmental.

3.1.3 Australian Government Indigenous expenditure

The Federal Court has jurisdiction under the Native Title Act 1993 to hear and determine native title applications, compensation applications, claim registration applications, applications to remove agreements from the Register of Indigenous Land Use Agreements and applications for transfer of records. The court also hears appeals from the National Native Title Tribunal and matters filed under the Administrative Decisions (Judicial Review) Act 1977 involving native title.

Table 3.1.3: Australian Government Indigenous expenditure (AGIE)

Appropriations
Bill / Bill / Special / Total
No. 1 / No. 2 / approp / approp / Other / Total
$’000 / $’000 / $’000 / $’000 / $’000 / $’000 / Program
Outcome 1
Departmental 2011–12 / 9,875 / – / – / – / – / 9,875 / 1.1
Departmental 2010–11 / 9,836 / – / – / – / – / 9,836 / 1.1
Total AGIE 2011–12 / 9,875 / – / – / – / – / 9,875
Total AGIE 2010–11 / 9,836 / – / – / – / – / 9,836

3.2 Budgeted financial statements

3.2.1 Differences in agency resourcing and financial statements

The most significant difference between the agency resourcing table and the financial statements is that resources received free of charge and liabilities assumed by other agencies are not recognised in Tables 1.1 and 2.1 as a revenue item. The reader should note this difference when comparing the figures presented in Tables 1.1 and 2.1 to the budgeted financial statements following.

3.2.2 Analysis of budgeted financial statements

The Federal Court is budgeting for a balanced budget in 2011–12. The court’s budgeted loss in 2010–11 is due largely to a write-down in the value of non-current assets. This write-down will not affect budget outcomes for future years.

The Federal Court’s total appropriation from government will fall to $88.907m in
2011–12. The decrease in operating appropriation reflects the Australian Government’s decision to retain the Federal Magistrates Court. Funds attributable to the Federal Magistrates Court have been returned to the Federal Magistrates Court from 1 January 2011. The Federal Court’s departmental capital budget has also decreased from $6.246m in 2010–11 to $3.402m in 2011–12.

3.2.3 Budgeted financial statements tables

Departmental

Table 3.2.1: Comprehensive income statement (showing net cost of services) (for the period ended 30June)