8.3 Treatment of revenue

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Government policy on user charges now allows the ‘netting off’ of revenues collected by an entity.

Receipts raised through charging other parties (including other departments or agencies) for access to or the use of operating assets will be retained by the entity. Wherever possible this will take place through annotated appropriations.

The entity will be required to link forecasts of asset user charges to recurrent expenditure budgets. These income forecasts should then be netted off against total expenditure needs to determine an entity’s annual appropriation requirements. Drawings of cash annually under the Appropriation Act for recurrent expenditure purposes will thus be reduced by the amount forecast by the entity.

Entities will be able to effectively retain proceeds from user charges on such terms and conditions as are agreed between the Treasurer and the relevant Minister. Entities should credit the receipts arising from user charges to their bank account, and are required to pay them into the Consolidated Fund.

Department of Treasury and Finance, Accounting and Financial Reporting Division Telephone 61 3) 9651 2187

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