Gun Buy Back Scheme - The Australian National Audit Office

Commonwealth Payments to the States
This chapter examines the Commonwealth’s management of Specific
Purpose Payments to the States in relation to administrative costs and
compensation payments for surrendered firearms.
Introduction
3 60 Following the APMC resolutions, the Commonwealth Government
decided to contribute substantially to the cost of administering the
buy-back scheme and to the payment of compensation. After
some negotiation, the Commonwealth eventually agreed to fund in
full the costs to the States of establishing and administering the
scheme. The Commonwealth also agreed to reimburse the States
for payments made to gun owners and dealers in compensation for
prohibited weapons.
3 61 Financial management encompasses both cash management,
audit and acquittal of funds as well as prevention of opportunities
for fraud and corruption. To demonstrate financial accountability,
Commonwealth departments, must manage, and be seen to
manage, funds entrusted to them to achieve program outcomes
that represent value for money and are equitable when dealing with
a range of stakeholders.
Revenue collection
3 62 The Government decided to raise approximately
$500 million to fund the compensation scheme. The Attorney-
General's Department advised the ANAO that the Department was
not involved in estimating the requirement for this amount.
Following consideration of several alternative methods, the
Government decided to raise this revenue through a 0.2 per cent
increase in the Medicare levy. The Australian Taxation Office
(ATO) estimated that this would raise about $490 million.
3 63
54 The Gun Buy-Back Scheme