Each year, IR receives funding from the Government to deliver services. In 2023–24, we delivered services through 3 departmental appropriations. An appropriation is a parliamentary authorisation for the Government or an Office of Parliament to incur expenses or capital expenditure.
The total budgeted appropriation for 2023–24 was $751 million. IR spent $723 million, $28 million lower than the funding appropriated.
2023-24 Budget Appropriations
- Services to customers multicategory appropriation - $732m.
- Residual activities transformation annual appropriation - $17m.
- Services to other agencies - $2m.
We made savings in contractors, personnel, accommodation, technology and communications expenditure, which will be returned to the Crown. We will continue to focus on finding efficiencies and savings in these areas in 2024–25.
Operating expenditure
Operating expenditure against appropriations including remeasurements (expenditure that does not require an appropriation) was $725 million. It covers spending on personnel (60% of the total), operating (30%), depreciation including amortisation and impairment (7%) and capital charge (3%).
Total personnel costs were for our people’s remuneration, employee entitlements and training and development costs. The increase in personnel costs includes the outcome of the Public Sector Pay Adjustment into collective employment agreements for 2023–24 and outyears.
| Year | Personnel | Operating | Depreciation and amortisation | Capital charge |
|---|---|---|---|---|
| 2022-23 | $395 | $238 | $49 | $23 |
| 2023-24 | $434 | $221 | $48 | $22 |
Operating costs this year mainly related to technology, telecommunications, accommodation leases, contractors and office expenses.
Operating expenditure on contractors and consultants fell to $27 million from $42 million in 2022–23. The ratio of contractors and contractor operating expenditure to workforce operating spend was 6.2% in 2023–24 (10.3% in 2022–23).
$723m operating expenditure against appropriations to deliver outcomes in 2023–24.
- 2023: $691m
$32m capital investment in 2023–24.
Nil breaches of departmental appropriations.
96.3% of domestic invoices paid within 10 working days against a target of 95%.
- 2023: 96.6%
Capital expenditure
We spent $32 million on capital investments in 2023–24 ($40 million in 2022–23) primarily for technology, software development and leasehold improvements.
Our future outlook
Operating appropriation for 2024–25 is forecast to be $756 million, an increase of $33 million from 2023–24. This increase includes additional funding to deliver and administer FamilyBoost and personal income tax threshold changes.
In terms of capital expenditure, IR is maintaining capital reserves, funded from annual depreciation, to upgrade and replace assets.