Funding arrangements

1.18  The May 2008 Budget included $20 million over four years to fund the Office of the Infrastructure Coordinator, with $0.5 million for 2007-08 and $6.5 million in each of the remaining three years. A further $1.0 million per annum is provided for the Major Cities Unit.54 As the Office of the Infrastructure Coordinator does not have responsibility for administering funding that may be approved for infrastructure projects that it has recommended, it has no administered funds.

1.19  Although the 2007 election policy was that Infrastructure Australia would be established as an independent statutory authority (see paragraph 1.1), it was actually established as part of DITRDLG and not as either a statutory authority or a prescribed agency under the FMA Act. Accordingly, the Office of the Infrastructure Coordinator's funding is appropriated within that of DITRDLG. Specifically, the Office of the Infrastructure Coordinator funding is included within the departmental outputs funding for the Department's Outcome 1 'Improved infrastructure across Australia through investment in and coordination of transport and other infrastructure'.

1.20  Departmental outputs are appropriated as a single amount for each entity, such that the $7.5 million per annum annual funding for the Office of the Infrastructure Coordinator and the Major Cities Unit is able to be used to fund any departmental expenditure. In this context, the Office of the Infrastructure Coordinator advised ANAO that corporate overheads for 2009-10 are expected to be some $1.876 million, comprising:

•  rent and property operating expenses of some $1.2 million per annum;55 and

•  $625 000 for DITRDLG's provision of a range of corporate facilities and support, such as legal services and security.




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54  The $6.5 million budget allocated to the Office of the Infrastructure Coordinator is required to meet any budget deficits of the Major Cities Unit.

55  The Office of the Infrastructure Coordinator is located in Sydney, New South Wales. The accommodation arrangements for the Office of the Infrastructure Coordinator were settled by DITRDLG prior to Infrastructure Australia's establishment.