Description of functions and sub-functions

General Public Services

The general public services function includes expenses relating to the organisation and operation of government such as those related to the Parliament, the Governor-General and conduct
of elections; the collection of taxes and the management of public funds and public debt; assistance to developing countries to reduce poverty and achieve sustainable development,
particularly in the Pacific region; and contributions to international organisations and the operations of the foreign service. It also includes expenses related to research in areas not
otherwise connected with a specific function, and those associated with overall economic and statistical services and government superannuation benefits (excluding nominal
superannuation interest sub-function in the other purposes function).

Sub-function Include Exclude

Legislative and executive
affairs
parliaments and councils; Ministerial departments and inter-departmental
committees classified to a specific function.
governor-general;
conduct of elections and maintenance of registers of voters;
legislative drafting offices;
libraries and other reference facilities that serve the legislative bodies;
permanent and ad-hoc commissions and committees created by or acting on behalf of the
legislature; and
ministerial departments, local government offices and inter-departmental committees not
concerned with a specific function, such as certain expenses of the Department of the Prime
Minister and Cabinet.

Financial and fiscal affairs
Foreign affairs and foreign
economic aid
collection of taxes, including customs duties; collection of licences, fees and fines
management of public funds and public debt; which are associated with a specific function;
and
departmental monitoring and control of monetary and fiscal policy; and
underwriting and floating of government
formulation and review of government budgets.
loans and interest payments.
expenses concerned with foreign affairs and diplomatic and consular missions stationed production of cultural material intended
abroad or at offices of international organisations; for overseas broadcasting classified under
information and cultural activities intended for distribution overseas; broadcasting and film production;
contributions to meet the operating expenses of international organisations and support for military aids;
research into foreign policy; aid to international peace-keeping
issuing of passports and visas; and operations; and
non-military aid to developing countries including Official Development Assistance. personnel and other general services
connected with a specific function.

General research Research directed towards the increase in scientific knowledge or discovery of new fields of Research undertaken with a specific purpose in
investigation, not connected with a specific function. mind.

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General services overall economic and social planning and statistical services not connected with a specific personnel and other general services
function; connected with a specific function; and
offices, bureaux, or program units which formulate, coordinate and frequently monitor the ad-hoc and permanent committees or
implementation of overall economic and social policies programs; advisors created by, or acting on behalf of, the
development and implementation of general personnel policies and procedures; chief executive or legislature classified to
legislative and executive affairs.
centralised supply and purchasing services that cannot be split and allocated to specific
functions; and
repairs and maintenance of central motor pools.

Government retirement and pension plans for military personnel and other government employees and pensions and other benefits paid to ex-
superannuation benefits their survivors under contribution schemes; service personnel for compensation resulting
payments under the defence forces retirement and death benefits scheme; and from service in defence forces, and to war
widows and war orphans; and
payments under Commonwealth, state and local government superannuation schemes.
old age pensions, disability benefits, etc
paid through the general social security
system to ex-military personnel.

Defence
Agencies covered by the defence function include the Department of Defence (Defence) and the Defence Materiel Organisation (DMO). Defence expenses support Australian military
operations overseas and the delivery of navy, army, air and intelligence capabilities and strategic policy advice in the defence of Australia and its national interests. The DMO contributes to
the preparedness of the Australian defence organisation through acquisition and through-life support of military equipment and supplies.

The defence function does not include expenses relating to the Department of Veterans Affairs, superannuation payments to retired military personnel, Australian War Memorial and
housing assistance provided through Defence Housing Australia, which are reported under the social security and welfare, other purposes, art and cultural heritage and housing and
community amenities functions, respectively.

Function Type Include Exclude

Defence land, sea, air and reservist combat personnel; pension schemes for military personnel; and
engineering, transport, communications, intelligence, training and recruitment and other food, materials, and equipment used for
non-combatant personnel and associated services; emergency peacetime disasters.
provision of equipment, structures and supplies, base hospitals and military schools and colleges;
dissemination of information;
civil defence personnel and acquiring materials and equipment;
military aid missions accredited to foreign governments attached to international military
organisations;
military aid grants and advances and contributions to international peace-keeping forces including
assignment of manpower;
research and experimental development related to the armed forced and civil defence;
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 development of new and improved equipment;
improvements in tactics and strategies; and
other research and development related to defence.

Public order and safety

Expenses under the public order and safety function support the administration of the federal legal system and the provision of legal services, including legal aid to the community. Public
order and safety expenses also include law enforcement and intelligence activities, in addition to the protection of Australian Government property.

Function Type Include Exclude

Courts and legal services Legal representation and advice on behalf of the government and others including: costs of crown industrial law; and
prosecution, trusteeship services and law reform.
tribunals and appeals boards that can be
classified to specific purpose categories.

Other public order and all activities concerned with the prevention of illegal activities and apprehension of criminals such as: forest fire protection services classified
safety terrorism prevention, traffic control, internal security forces, police colleges, police training and police under forestry;
laboratories; residential child care institutions that are
fire protection services including: contributions to volunteer fire brigades, operations of fire brigade not places of secure detention such as:
boards, and roadside clearing; juvenile hostels, family group homes and
juvenile corrective services such as: places of secure detention for juveniles, child offenders and campus homes;
children on remand for alleged offences, youth training centres and juvenile corrective institutions; road safety e.g. traffic improvements and
prisons and other corrective services; road transport activities; and
control of domestic animals and livestock such as dog registration, pounds, control of stray cattle and Natural Disaster Relief Arrangements.
associated veterinary costs; and
other public order and safety including: beach inspectors, life saving and beach patrols, maintenance
of state emergency services and their operation, control of explosives, human rights organisations, and
community relations.

Education
Education expenses support the delivery of education services through higher education institutions; vocational education and training providers (including technical and further education
institutions); and government (State and Territory) and non-government primary and secondary schools.

Function Type Include Exclude

Higher education Administration, inspection, support, and operation of education programs leading to a university first Military colleges classified to Defence.
degree, post-graduate degree or other higher qualifications.

Vocational and other some vocational and technical training which occur in the final years of secondary education; Apprenticeship schemes.
education
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 special education such as: the education of blind, deaf and mute children, children with other
forms of physical and emotional problems, etc;
migrant education programs; and
other educational programs not definable by education level.

Non-Government schools preschool education; and

and Government schools
education programs at primary and secondary level.

Student assistance AUSTUDY/Youth Allowance;

ABSTUDY;
assistance to Indigenous students;
supplementary benefits for part-time students; and
other student assistance associated with the transportation of students such as: contract bus
services, conveyance allowances to parents, and reimbursement of private sector bus operators for
concessional fares offered to these students.

General administration Running costs associated with the administration of the education function.

School education specific Programs that target specific initiatives or are designed specifically for the benefit of certain groups.
funding

Health
The health function includes expenses relating to: medical services funded through Medicare and the Private Health Insurance Rebate; payments to the States and Territories to deliver
specific health services; Pharmaceutical Benefits and Repatriation Pharmaceutical Benefits Schemes; blood and blood products; population health measures; and health education and
training services. A new sub-function takes effect from 1 July 2009 for the National Healthcare Specific Purpose Payments to the States and Territories ('the States') as this funding is tied
more broadly to expenditure by the States on healthcare services, instead of specific health services such as public hospital services and preventive health. Former Commonwealth funding
specifically for public hospitals is captured in the health care agreements sub-function until 30 June 2009.

Function Type Include Exclude

Medical services and medical benefits assistance under Medicare towards the cost of out-of-hospital medical services and
benefits towards the cost of medical services provided to patients under private care in hospital;
veterans and dependants - costs for eligible veterans and their dependants of local medical officer,
specialist, paramedical and dental services, the supply and maintenance of surgical aids, and travelling
and other expenses incurred in obtaining medical treatment; and
private health insurance incentives provides an income tested financial incentive for families and
individuals to take out and maintain private health insurance cover.

Hospital services shared ward accommodation and treatment;

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National healthcare
specific purpose payment
Pharmaceutical benefits
and services
Aboriginal and Torres
Strait Islander health
Health services
General administration
Health assistance to the
aged
Social security and welfare
The social security and welfare function includes: pensions and services to the aged, assistance to the unemployed, people with disabilities and families with children; and income support
and compensation for veterans and their dependants. It also includes advancement programs for Aboriginal and Torres Strait Islander people.
Function Type
Assistance to the aged
Assistance to veterans and
dependants
Assistance to people with
disabilities
free outpatient;
accident and emergency treatment at public hospitals;
spending on hospital funding agreements with the states; and
veterans and dependants treated at public hospitals or private hospitals with which the Department
of Veterans Affairs has a contract.
Payments to the States to support their delivery of healthcare services.
Pharmaceuticals provided outside of hospitals.
Heath services to specifically benefit Indigenous Australians including services such as mental health, sexual
health and hearing services.
funding for the provision of blood and blood products, population health programs, and
development of mental health care strategies.
research into health, medical and health sciences; and
health promotion and disease prevention such as health promotion campaigns, occupational health
and safety programs, food standards regulations, environmental health, nutrition services, communicable
disease surveillance and control, and epidemiology.
Running costs associated with the administration of the health function.
Nursing homes which provide long-term care involving regular basic nursing care primarily for persons aged
65 years and over.
Include Exclude
Income support for aged people and their dependants, residential care for those aged people who are unable
to live at home but who do not require intensive nursing care, and community care alternatives for those frail
aged and younger people with a disability for whom long-term residential accommodation would be
inappropriate.
Income support and compensation, in the form of pensions, to veterans and their dependants.
Income support to people with disabilities as well as partners, parents and other carers of people with
disabilities, assistance with labour force related transport costs, and services which increase the independence
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 and employment opportunities of people with disabilities.

Assistance to families with Income assistance paid to families irrespective of whether anyone in the household is earning an income.
children Includes payments to households on a per child basis such as family allowances, and payments to children
with a disability allowance.

Assistance to the unemployment benefits paid to compensate for loss of income due to unemployment; and
unemployed and the sick
income support provided to persons who are unable to work because of temporary incapacity, and
who have limited alternative means of support.

Other welfare programs income support to people in special circumstances;

income supplements and/or concessions for people facing certain additional costs;
increased access to accommodation for low income earners and the homeless through the provision
of recurrent and capital funds in conjunction with the States and Territories; and
emergency relief funds paid through charitable agencies for people who are in financial crisis.

Aboriginal advancement Expenses that are related to advancement programs for Aboriginal and Torres Strait Islander people which
n.e.c are not elsewhere classified.

General administration Administration costs associated with the social security and welfare function.

Housing and community amenities

The housing and community amenities function includes the Australian Governments contribution to the National Affordable Housing Agreement, other Australian Government housing
programs, expenses of Defence Housing Australia and various regional development and environmental protection programs.

Function Type Include Exclude

Housing provision of housing for the general public and people with special needs; construction activity; and
acquisition of land for dwelling construction; rent assistance classified to Social
conditional financial assistance for the construction of homes; Security and Welfare.
rental subsidies and allowances;
mortgage financing of homes for ex-service personnel and other low cost mortgage financing for home
building or purchase; and
general administration, regulation, research and the promotion of standards in the field of housing.

Urban and regional Administration, provision and support of the operation of overall community developments mainly Construction activity.
development concerned with the planning of new or rehabilitated communities with the aim of improving the quality of
life.

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Environmental protection assistance for the development, expansion or operation of water supply systems; activities in connection with
production and dissemination of information and research into the conservation, collection irrigation systems;
purification and distribution of water; construction of drains associated
expenses related to waste disposal, drainage systems, air pollution, monitoring urban flood with roadwork; and
mitigation, resource assessment, pollution abatement and control and community amenities; public conveniences at recreational
administration and operation of government agencies engaged in applied research and experimental areas.
development related to environmental protection;
grants or subsidies to support applied research and experimental development related to
environmental protection undertaken by non-government bodies such as research institutes and
universities; and
administration, management, regulation, supervision, operation and support of activities such as
formulation, administration, coordination and monitoring of overall policies, plans, programs and
budgets for the promotion of environmental protection; preparation and enforcement of legislation and
standards for the provision of environmental protection services; production and dissemination of
general information, technical documentation and statistics on environmental protection.

Recreation and culture

Recreation and culture function expenses support public broadcasting, cultural institutions, funding for the arts and the film industry, assistance to sport and recreation activities, as well as
the management and protection of national parks and other world heritage areas. This function also includes expenses relating to the protection and preservation of historic sites and
buildings, including war graves.

Function Type Include Exclude

Broadcasting and film support of the construction or acquisition of facilities for television or radio broadcasting and for the
production production and presentation of broadcasting material;
production of cultural material intended for overseas broadcasting;
administering the collection of commercial radio and television licence fees; and
support of film production.

Arts and cultural heritage funding for the operating costs of collecting institutions such as the National Library of Australia, Cultural activities intended for distribution
the National Gallery of Australia, the Australian National Maritime Museum, the National Museum of overseas.
Australia, and the Australian War Memorial;
funding to certain cultural bodies; and
administrative support of cultural activities.

Sport and recreation financial assistance to elite athletes and encourage community interest and participation in sport and
recreational activities; and
administration, support, provision, operation of public halls and civic centres, swimming pools and
other recreational facilities and services.
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National estate and parks Outlays on aspects of national estate such as historic houses and sites which are part of the national parks and
wildlife services.

Fuel and energy

This function comprises a wide range of fuel and energy expenses administered across a number of portfolios. It includes expenses for the Fuel Tax Credits and the Energy Grants (Cleaner
Fuels) Schemes, which are administered by the Australian Taxation Office. It also includes expenses related to greenhouse programs and programs to support production or use of
alternative fuels, including ethanol and biodiesel.

Function Type Include Exclude

Fuel and energy expenses on coal, petroleum, gas, electricity and other energy including alternative fuels such as ethanol,
wood and wood wastes; and
price control, research, dissemination of information, measures designed to reduce consumption or
increase production, and support in the form of advances, grants or subsidies.

Agriculture, forestry and fishing

Agriculture, forestry and fishing function expenses support assistance to primary producers, forestry, fishing, land and water resources management, quarantine services and contributions to
research and development.

Function Type Include Exclude

Wool industry Contributions to the wool industry for promotion, administration, market support, and research and
development.

Grains industry Contributions to the grain industry for promotion, administration, market support, and research and
development.

Dairy industry Contributions to the dairy industry for promotion, administration, market support, and research and
development.

Cattle, sheep and pig
industry
Fishing, horticulture and
other agriculture
General assistance not
allocated
Rural assistance
Contributions to the meat industry for promotion, research and development and control of cattle diseases.
funding for fisheries management and research; and Sport fishing.
grants, subsidies and other assistance for horticulture and other agriculture industries.
General assistance not allocated to specific industries.
Expenses for Government support of rural producers and rural industry adjustment initiatives, such as
assistance to farmers through income support, interest rate subsidies, grants for structural adjustment,

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 financial counselling, training and innovation grants.

Natural resources Water, land and forest management programs, and includes the Governments contribution towards the
development Murray-Darling Basin initiative.

General administration Running costs associated with the administration of the Agriculture, Forestry and Fishing function.

Mining, manufacturing and construction

Expenses under this function relate to the mining, manufacturing and construction sectors, and are designed to assist the efficiency and competitiveness of Australian industries. The major
components include programs specific to the automotive and textiles, clothing and footwear industries.

Function Type Include Exclude

Mining, manufacturing and
construction
activities related to prospecting, mining and mineral resources development including non-metal bearing all activities relating to mineral fuels;
minerals; manufacturing relating to the
activities and research into manufacturing methods, materials and industrial management; production of fuel and energy classified
automotive, textiles, clothing and footwear industries; and to fuel and energy; and
building and construction industry. specific building and construction
projects classified to the appropriate
purpose.

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 Transport and communication
Transport and communication function expenses support the infrastructure and regulatory framework for Australias transport and communication sectors.

Function Type Include Exclude

Communication administration, provision, construction, regulation and operation of communication affairs and services Radio and television broadcasting systems
including: postal, telephone, telegraph, cable, broadband and wireless communication systems and and water or air navigation aids.
communication satellites; and
grants, advances and subsidies for communication equipment and services.

Rail transport Costs on planning, designing, constructing, extending and improving railways and associated structures such
as:
terminals, tunnels, bridges, etc;
research into the design construction etc of rail transport facilities;
tariff and passenger fares, passenger safety and frequency of service;
subsidies, grants or advances to public non-financial corporations and private sector system
operators; and
research and dissemination of information on rail transport affairs and services.

Air transport Expenses on planning, designing, constructing, extending or improving airports such as:
runways, terminals, hangars, air navigation aids and the supervision, licensing and regulating of
such work;
research into the design, construction, etc of air transport facilities;
tariff and passenger fares, passenger safety, registration, licensing and inspection of aircraft, pilots
and crews including ground crews and allocation of routes;
subsidies, grants or advances to public non-financial corporations and private sector system
operators; and
research and dissemination of information on air transport affairs and services.

Road transport Expenses on administration, regulation, support, operation, etc of road and highway construction affairs, road
and highway maintenance affairs, both off and on street parking, and other road transport affairs and services.

Sea transport Expenses on administration, planning, construction, regulation, operation, etc of sea transport facilities and
inland, coastal and ocean passenger and freight sea transport affairs and services.

Other transport and Costs of administering relevant programs in the transport and communication sectors.
communication

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 Other economic affairs
This function includes expenses on tourism and area promotion, labour market assistance, immigration, industrial relations and other economic affairs not elsewhere classified.

Function Type Include Exclude

Tourism and area administration, regulation, planning, development, research, support and operation of tourism and area National parks and wildlife services
promotion promotion to attract tourists; and classified to Recreation and Culture.
local government promotion to attract development.

Vocational and industry Administration, support, regulation, and the research of training programs such as apprenticeship schemes Training programs provided by TAFE
training designed to facilitate entry into the workforce of people currently not employed or in need of retraining. institutions.

Labour market assist to job Expenses to improve efficiency in the labour market by enhancing skills and productivity and meeting skill
seekers and industry shortages and assisting job search activity.

Industrial relations expenses relating to the regulation of working conditions, the prevention and settlement of industrial
disputes, the enforcement of industrial awards and agreements and the provision of occupational training
schemes and labour exchange facilities; and
expenses relating to the administration, regulation and research in the field of industrial relations.

Immigration Activities of Government concerned with the management of migration and humanitarian programs,
temporary entry, entry facilitation, compliance activity and citizenship.
Other economic affairs consumer interest and protection affairs;
n.e.c
licensing, sale practise, labelling of packages of food and other goods intended for household
consumption;
price control and rationing schemes operating through retailers or wholesalers;
wholesale or retail shop inspections; and
all services relating to distributive trade affairs and services n.e.c.

Other purposes
The other purposes function includes expenses incurred in the servicing of Public Debt Interest (PDI), general purpose assistance to the state, territory and local governments and other
assistance to these governments not elsewhere classified. The function also includes items classified to natural disaster relief, the cost of asset sales, the contingency reserve, and expenses
related to nominal interest on unfunded liabilities for government superannuation benefits.

Function Type Include Exclude

Public debt transactions Underwriting and floating of government loans and interest payments, including interest on government Administrative costs of public debt
securities or under special credit arrangements with other countries. management.

General purpose inter- General revenue assistance to States and Territories including Goods and Services Tax payments and Payments to and through the States and
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government transactions financial assistance grants for local government. direct to local government for specific
purposes classified elsewhere
Natural disaster relief administration, planning, support and the provision of programs concerned with the immediate relief Mitigation activities associated with natural
of victims of drought, fires, floods, cyclones and other natural disasters; and disasters
initial restorations of community services and facilities.

Contingency reserve
Allowance included in aggregate expenses to reflect the effects of future known events, which cannot be
reasonably assessed at Budget time.

Nominal superannuation
interest Nominal interest on unfunded liabilities for government superannuation benefits.

SOURCE: Australian System of Government Finance Statistics Concepts, Sources and Methods 2005 (ABS Catalogue No. 5514.0)

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