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Budget Paper 4

Agency StatementsVolume 4

2016 17STATE

BUDGET

Published 7 July 2016ISSN 1440-8589

Acknowledgements

Content from this publication may be reproduced with appropriate acknowledgement, as permitted under the Copyright Act 1968.

© Government of South Australia 2016

2016−17 Budget PapersBudget Paper 1 Budget Overview

Budget Paper 2 Budget Speech

Budget Paper 3 Budget Statement

Budget Paper 4 Agency Statements — Volumes 1, 2, 3, 4

Budget Paper 5 Budget Measures Statement

Budget Paper 4

2016–17 Agency Statements

Volume 4

Presented by The Honourable Tom Koutsantonis MP

Treasurer of South Australia on the Occasion of the Budget

for 2016–17

General enquiries regarding budget papers should be directed to:

The Chief Executive Department of Treasury and Finance State Administration Centre 200 Victoria Square Adelaide SA 5000

Copies may be obtained from:

SERVICE SA Government Legislation Outlet Ground Floor EDS Centre 108 North Terrace Adelaide SA 5000

Website: www.treasury.sa.gov.au www.statebudget.sa.gov.au

Agency statements by volume

Volume 1

Attorney-General Auditor-General Communities and Social Inclusion Correctional Services Courts Defence

Volume 2

Education and Child Development Electoral Commission Emergency Services — CFS Emergency Services — MFS Emergency Services — SAFECOM Emergency Services — SES Environment Protection Authority Environment, Water and Natural Resources

Volume 3

Green Industries Health and Ageing Planning, Transport and Infrastructure Police Premier and Cabinet

Volume 4

Primary Industries and Regions State Development Tourism Treasury and Finance

Volume 4 contents

Introduction ........................................................................................................................................ 3 Primary Industries and Regions ........................................................................................................ 9 State Development .......................................................................................................................... 49 Tourism .......................................................................................................................................... 135 Treasury and Finance ................................................................................................................... 155 Accounting Standards ................................................................................................................... 199

2016–17 Agency Statements — Volume 4 1

2 2016–17 Agency Statements — Volume 4

Introduction

The 2016−17 Agency Statements outline financial and non-financial information about the services each agency provides to, and on behalf of, the South Australian community.

The agency statements are presented in alphabetical order as indicated in the list below.

Alphabetical list order Agency name Abbreviation

Attorney-General Attorney-General’s Department AGD

Auditor-General Auditor-General’s Department

Communities and Social Inclusion Department for Communities and Social Inclusion DCSI

Correctional Services Department for Correctional Services DCS

Courts Courts Administration Authority CAA

Defence SA Defence SA

Education and Child Development Department for Education and Child Development DECD

Electoral Commission Electoral Commission of South Australia ECSA

Emergency Services ― CFS South Australian Country Fire Service CFS

Emergency Services ― MFS South Australian Metropolitan Fire Service MFS

Emergency Services ― SAFECOM South Australian Fire and Emergency Services Commission SAFECOM

Emergency Services ― SES South Australian State Emergency Service SES

Environment Protection Authority Environment Protection Authority EPA

Environment, Water and Natural Resources Department of Environment, Water and Natural Resources DEWNR

Green Industries Office of Green Industries SA GISA

Health and Ageing Department for Health and Ageing DHA

Planning, Transport and Infrastructure Department of Planning, Transport and Infrastructure DPTI

Police South Australia Police SAPOL

Premier and Cabinet Department of the Premier and Cabinet DPC

Primary Industries and Regions Department of Primary Industries and Regions PIRSA

State Development Department for State Development DSD

Tourism South Australian Tourism Commission SATC

Treasury and Finance Department of Treasury and Finance DTF


Definitions

Agency An agency is an administrative unit created under the Public Sector Act 2009 or a statutory authority that is accountable for the delivery of programs on behalf of the government.

Programs and sub-programs A program is a group of related activities that contribute to achieving one of an agency’s and, in turn, the government’s objectives. Many programs are further divided into sub-programs with more specific objectives.

Overview

The agency statements outline projected agency activity and performance for 2016–17. Each agency statement conforms to the following standard presentation structure:

• Objective — outlines the agency’s objectives

• Ministerial responsibilities — identifies the minister responsible for each program/sub-program and identifies any items administered by the agency on behalf of the minister(s)

• Ministerial office resources — details the resources provided to ministerial office(s)

• Workforce summary — summarises the agency’s workforce

• Program net cost of services summary — summarises the net cost of agency programs

• Investing expenditure summary — summarises investing expenditure for the agency

• Program/sub-program information — for each agency program/sub-program, provides a description/objective, program summary (expenses, income and full-time equivalents), financial commentary, highlights and targets, performance and activity indicators

• Financial statements — budgeted financial statements for controlled and administered items

• Summary of major variations — commentary on variances and trends in the financial statements.

Presentation of changes in program structures

Where a program or function is transferred between agencies, program information for previous years is reflected in the current program structure of the receiving agency.

In contrast, the agency financial statements line net cost of providing services in the statement of comprehensive income is based on the actual program structure for the agency as it operated or is expected to operate in each year. This distinction in treatment is drawn so that financial statements accurately reflect events while, at the same time, program information is comparable and not duplicated.

Reconciliation of the financial statements to the current program structure is contained in the program net cost of services summary located at the beginning of each relevant agency section.

On 21 June 2016, the government announced that Families SA will be established as a separate department. This is in response to Commissioner Nyland’s interim recommendation as part of the Child Protection Systems Royal Commission. Due to the timing of this announcement, this is not reflected in the Agency Statements.


Financial statements

The estimated financial statements included in the 2016−17 Agency Statements are special purpose financial statements and include, for each agency, a statement of comprehensive income, a statement of financial position and a statement of cash flows.

The format of these estimated financial statements is consistent with the model financial statements (prepared by the Department of Treasury and Finance for statutory reporting requirements) and is consistent with the requirements of AASB 101 Presentation of Financial Statements and AASB 107 Statement of Cash Flows.

Estimates in these financial statements have been prepared:

• on a basis that is consistent with Australian Accounting Standards (Australian Accounting Standards and/or interpretations that have been issued or amended but are not yet effective have not been adopted early)

• on an accrual basis, except for the statement of cash flows which has been derived from the statement of comprehensive income and statement of financial position to reflect cash payments and receipts

• using historical cost convention, except for certain assets and liabilities that are valued in accordance with the valuation policy applicable.

Consistent with Australian Accounting Standards, estimated transactions and balances that are controlled are budgeted for, and reported on, separately to estimated transactions and balances which are administered but not controlled by the agency.


Ministerial responsibilities

The ministerial responsibilities table provides a comprehensive list of the agencies and programs which fall under the responsibility of each minister, and is presented in Ministerial Order of Precedence.

Minister Agency Programs The Hon. J Weatherill Premier

Department of the Premier and Cabinet 1. Premier and Cabinet Policy and Support

2. Strategic Engagement and Communications

3. Agent–General 4. State Coordinator–General 5. Support Services and Community

Programs 6. Office for Digital Government

Department of State Development 1. Office of the Economic Development Board

The Hon. JR Rau Deputy Premier Attorney-General Minister for Justice Reform Minister for Planning Minister for Industrial Relations Minister for Child Protection Reform Minister for the Public Sector Minister for Consumer and Business Services Minister for the City of Adelaide

Department of the Premier and Cabinet 7. Government Services 8. Public Sector Performance

Attorney-General’s Department 1. Legal and Justice Services 2. Consumer and Business Services 3. Advocacy and Guardianship

Services 4. Equal Opportunity 5. Police Ombudsman 6. Ombudsman 7. Industrial Relations 8. Fines Enforcement and Recovery 9. State Records

10. Child Protection Systems Royal Commission — Response Unit

Courts Administration Authority 1. Court and Tribunal Case Resolution Services

2. Alternative Dispute Resolution Services

Electoral Commission of South Australia 1. Electoral Services Department of Planning Transport and Infrastructure

1. Land Use Planning

Department of Treasury and Finance 1. Gambling Policy The Hon. KJ Maher Minister for Employment Minister for Aboriginal Affairs and Reconciliation Minister for Manufacturing and Innovation Minister for Automotive Transformation Minister for Science and Information Economy

Department of State Development 2. Industry and Innovation 3. Aboriginal Affairs and Reconciliation 4. Science, Technology and

Information Economy

The Hon. JJ Snelling Minister for Health Minister for the Arts Minister for Health Industries

Department of Health and Ageing 1. Policy, Clinical Services, System Transformation and Administration

2. Health Services Department of State Development 5. Arts South Australia

6. Health Industries


Minister Agency Programs The Hon. T Koutsantonis Treasurer Minister for Finance Minister for State Development Minister for Mineral Resources and Energy

Department of Treasury and Finance 2. Accountability for Public Sector Resources

3. Treasury Services 4. Financial Services Provisions

Department of State Development 7. Mineral Resources and Energy

The Hon. IK Hunter Minister for Sustainability, Environment and Conservation Minister for Water and the River Murray Minister for Climate Change

Department of Environment, Water and Natural Resources

1. Sustainability 2. Water 3. Parks and Public Assets

Environment Protection Authority 1. Environment and Radiation Protection

Department of State Development 8. Water Industry Technical and Safety Regulation

Office of Green Industries 1. Waste Reduction and Resource Recovery

The Hon. LWK Bignell Minister for Agriculture, Food and Fisheries Minister for Forests Minister for Tourism Minister for Recreation and Sport Minister for Racing

Department of Primary Industries and Regions

1. Agriculture, Food and Fisheries 2. Forestry Policy

South Australian Tourism Commission 1. Tourism Development 2. Tourism Events 3. Tourism Marketing

Department of Planning, Transport and Infrastructure

3. Recreation, Sport and Racing

The Hon. MLJ Hamilton-Smith Minister for Investment and Trade Minister for Small Business Minister for Defence Industries Minister for Veterans' Affairs

Department of State Development 9. Growing Small Business 10. Globally Integrating the SA

Economy Defence SA 1. Defence Industry Development

2. Techport Australia Department of Treasury and Finance 5. Veterans' Affairs

The Hon. GG Brock Minister for Regional Development Minister for Local Government


4. Office of Local Government

Department of Primary Industries and Regions

3. Regional Development

The Hon. ZL Bettison Minister for Communities and Social Inclusion Minister for Social Housing Minister for the Status of Women Minister for Ageing Minister for Multicultural Affairs Minister for Youth Minister for Volunteers

Department for Communities and Social Inclusion

1. Thriving Communities 2. Domiciliary and Community Care

Services 3. Social Housing

The Hon. SE Close Minister for Education and Child Development Minister for Higher Education and Skills

Department for Education and Child Development

1. Early Childhood Development 2. School Education 3. Care and Protection

Department of State Development 11. Employment and Skills Formation

The Hon. SC Mullighan Minister for Transport and Infrastructure Minister for Housing and Urban Development


5. Roads and Marine 6. Public Transport 7. Infrastructure Planning and

Management

The Hon. LA Vlahos Minister for Disabilities Minister for Mental Health and Substance Abuse

Department for Communities and Social Inclusion

4. Disability SA 5. Disability Services 6. NDIS and Service Reform


Minister Agency Programs The Hon. P Malinauskas Minister for Police Minister for Correctional Services Minister for Emergency Services Minister for Road Safety

South Australian Police 1. Public Safety 2. Crime and Criminal Justice

Services 3. Road Safety

South Australian Country Fire Service 1. Country Fire Service South Australian Metropolitan Fire Service 1. South Australian Metropolitan Fire

Service South Australian Fire and Emergency Services Commission

1. Fire and Emergency Services Strategic Services and Business Support

South Australian State Emergency Service

1. State Emergency Service

Department for Correctional Services 1. Rehabilitation and Reparation 2. Custodial Services 3. Community Based Services


2. Road Safety


Agency: Department of Primary Industries and Regions

Minister for Agriculture, Food and Fisheries

Minister for Forests

Minister for Regional Development


Primary Industries and Regions


Contents

Objective .......................................................................................................................................... 12 Ministerial responsibilities ................................................................................................................ 13 Ministerial office resources .............................................................................................................. 14 Workforce summary ........................................................................................................................ 14 Program net cost of services summary ........................................................................................... 14 Investing expenditure summary ...................................................................................................... 15 Program 1: Agriculture, Food and Fisheries ................................................................................ 16 Program 2: Forestry Policy ........................................................................................................... 30 Program 3: Regional Development .............................................................................................. 32 Financial statements ....................................................................................................................... 35 Summary of major variations........................................................................................................... 43 Additional information for administered items ................................................................................. 46



Objective

The Department of Primary Industries and Regions (PIRSA) has the lead role implementing and coordinating South Australia’s economic priority — Premium food and wine produced in our clean environment and exported to the world. PIRSA also has a lead role in coordinating and delivering regional development initiatives across government. These objectives reflect targets in South Australia’s Strategic Plan, including growing the contribution made by the South Australian food industry to $20.0 billion by 2020.

To assist in achieving these aims, PIRSA has the additional objectives of:

• securing sustainable access to resources such as land, water and stock

• enhancing and growing the efficiency and value of production

• ensuring and expanding access to markets

• working with South Australia’s regional communities to enhance sustainable economic prosperity.

PIRSA contributes to the productivity growth of our agriculture, food and fisheries by: enforcing strict biosecurity measures to keep our crops and farm animals free of many pests and diseases (e.g. South Australia is fruit fly and phylloxera free), preparing food safety standards which make our produce some of the safest in the world, and providing strong research and innovation capabilities through the South Australian Research and Development Institute (SARDI). PIRSA develops and implements policies and programs that ensure that South Australia’s agricultural sector remains competitive, profitable and sustainable, and provides a range of rural services through Rural Solutions SA.

PIRSA manages the use of South Australia’s aquatic resources to maximise the environmental, social and economic benefits to South Australian communities and ensure the sustainable development of our fisheries and aquaculture industries. South Australia's clean marine environment is home to some of the most sought after, premium seafood in the world. The fisheries that operate within these waters support aquaculture production and commercial, recreational and Aboriginal traditional fishing activities that contribute to the social and economic well-being of the state and prosperity of our coastal and river regions.

PIRSA’s Forestry group works with businesses and the community to promote the future of the forestry and wood products industry in South Australia and seeks new opportunities for development. A key priority is to increase the economic value of the forest and wood products industry.

Regions SA, a division of PIRSA, is responsible for working with regional communities to identify opportunities to expand economic growth and propose strategies and projects to deliver these benefits. A reinvigorated commitment has been made through Regions SA to provide financial assistance to job creation and economic development projects from businesses, councils, Regional Development Australia groups and communities from across regional South Australia.



Ministerial responsibilities Minister Programs Sub-programs

The Hon. LWK Bignell Minister for Agriculture, Food and Fisheries Minister for Forests

1. Agriculture, Food and Fisheries 1.1 Agriculture, Food and Wine 1.2 Aquaculture 1.3 Fisheries 1.4 South Australian Research and

Development Institute (SARDI) 1.5 Rural Services 1.6 Biosecurity 1.7 South Australian River Murray

Sustainability 2. Forestry Policy Nil

The Hon. GG Brock Minister for Regional Development

3. Regional Development Nil

Administered items

In addition to the above responsibilities, the agency administers the following items on behalf of the ministers:

• Adelaide Hills Wine Industry Fund

• Apiary Industry Fund

• Aquaculture Lease Rehabilitation Fund

• Aquaculture Resource Management Fund

• Barossa Wine Industry Fund

• Cattle Industry Fund

• Citrus Growers Fund

• Clare Valley Wine Industry Fund

• Deer Industry Fund

• Dog Fence Board

• Egg Industry Deregulation Fund

• Eyre Peninsula Grain Growers Rail Fund

• Fisheries Research and Development Fund

• ForestrySA ― community service obligation

• Grain Industry Fund

• Grain Industry Research and Development Fund

• Langhorne Creek Wine Industry Fund

• McLaren Vale Wine Industry Fund

• Pig Industry Fund

• Riverland Wine Industry Fund

• Rock Lobster Fishing Industry Fund

• SA Grape Growers Industry Fund

• Samcor Fund

• Seed Levies Fund



• Sheep Industry Fund.

Statutes

The Department of the Premier and Cabinet maintains a list of statutes applicable to ministers.

Ministerial office resources

2016–17 Budget

Cost of provision

Minister $000 FTE

The Hon. LWK Bignell ............................................................................ 1 571 8.0

The Hon. GG Brock ................................................................................ 1 495 9.0

Workforce summary

FTEs as at 30 June

Agency 2016–17

Budget(a)

2015–16 Estimated

Result(a) 2014–15

Actual Department of Primary Industries and Regions(b) ............................... 891.4 886.3 877.5 Administered items for the Department of Primary Industries and Regions(c)............................................................................................ 2.0 2.0 2.0 Total 893.4 888.3 879.5

(a) The 2016–17 Budget and 2015–16 Estimated Result reflect the established FTE caps.

(b) Data published by the Office for the Public Sector (Department of the Premier and Cabinet).

(c) Administered items FTEs are not included in the agency program information.

Program net cost of services summary

Net cost of services

2016–17 Budget

2015–16 Estimated

Result 2015–16 Budget

2014–15 Actual

Program $000 $000 $000 $000

1. Agriculture, Food and Fisheries .......................... 95 799 69 298 67 931 71 438

2. Forestry Policy .................................................... 6 245 1 703 7 747 1 225

3. Regional Development ........................................ 46 059 34 891 31 020 14 029

Total 148 103 105 892 106 698 86 692



Investing expenditure summary

The 2016–17 investment program is $9.6 million.

Estimated

completion

Total project

cost 2016–17 Budget

2015–16 Estimated


Investments Quarter $000 $000 $000 $000

Existing projects Almond Centre of Excellence ............... Jun 2016 1 500 — 1 500 — Clare Regional Office ........................... Jun 2017 3 819 1 211 1 709 1 709 Loxton Research Centre Redevelopment .................................... Jun 2017 6 070 2 595 3 370 4 000 Office Accommodation ......................... Jun 2016 934 — 934 — Sterile Insect Technology Facility ......... Dec 2016 3 800 872 2 660 1 987

Total existing projects 16 123 4 678 10 173 7 696

Annual programs Minor Capital Works and Equipment .... n.a. n.a. 4 884 6 293 4 770

Total annual programs n.a. 4 884 6 293 4 770

Total investing expenditure 16 123 9 562 16 466 12 466



Program 1: Agriculture, Food and Fisheries

Description/objective

Lead the delivery of South Australia’s economic priority — Premium food and wine produced in our clean environment and exported to the world — to drive growth and sustainable development of the state’s primary industry resources.

Sub-programs

1.1 Agriculture, Food and Wine

1.2 Aquaculture

1.3 Fisheries

1.4 South Australian Research and Development Institute (SARDI)

1.5 Rural Services

1.6 Biosecurity

1.7 South Australian River Murray Sustainability

Program summary — expenses, income and FTEs

2016–17 Budget

2015–16 Estimated


2014–15 Actual

$000 $000 $000 $000

Expenses Employee benefit expenses.......................................... 87 110 85 672 87 503 84 039 Supplies and services ................................................... 51 274 61 238 55 535 49 281 Depreciation and amortisation expenses ...................... 5 835 5 723 5 968 5 845 Borrowing costs ............................................................ 616 265 1 778 831 Grants and subsidies .................................................... 91 251 90 421 83 030 55 449 Intra-government transfers ........................................... 721 2 391 696 742 Other expenses ............................................................ 7 709 2 594 3 147 1 723

Total expenses 244 516 248 304 237 657 197 910

Income Commonwealth Government revenues ........................ 70 946 91 726 83 298 53 633 Intra-government transfers ........................................... 16 799 19 994 17 639 17 235 Other grants.................................................................. 31 791 33 040 30 487 29 689 Fees, fines and penalties .............................................. 1 989 1 973 5 014 2 180 Sales of goods and services ......................................... 22 069 17 855 24 768 17 211 Interest revenue ............................................................ 2 138 2 010 3 412 2 745 Net gain or loss from disposal of assets ....................... 10 118 2 212 164 Resources received free of charge ............................... — 9 173 — 12 Other income ................................................................ 2 975 3 117 2 896 3 603

Total income 148 717 179 006 169 726 126 472

Net cost of providing services 95 799 69 298 67 931 71 438

FTEs as at June (No.) 838.7 833.2 853.5 831.3



Sub-program 1.1: Agriculture, Food and Wine


Ensuring market access in line with South Australia’s economic priority — Premium food and wine produced in our clean environment and exported to the world.

2016–17 Budget

2015–16 Estimated


2014–15 Actual

$000 $000 $000 $000 Expenses ...................................................................... 20 072 21 722 16 690 14 505 Income .......................................................................... 2 058 2 312 3 494 4 060

Net cost of sub-program 18 014 19 410 13 196 10 445

FTEs as at June (No.) 53.5 53.2 52.9 52.4

Financial commentary

2016–17 Budget/2015–16 Estimated Result

The $1.6 million decrease in expenses is primarily due to:

• reduced expenditure associated with the Pinery Bushfire Recovery grant program in 2016–17 ($3.1 million)

• completion of detailed planning process supporting establishment of the Northern Adelaide Food Park in 2015–16 ($1.9 million)

• delivery of the Realising Opportunities in China for Food, Wine and Capability Development initiative in 2015–16 ($1.2 million)

• repayment of funds relating to the South East Confined Aquifer Wells Rehabilitation Scheme to the Department of Environment, Water and Natural Resources in 2015–16 ($0.8 million)

• reduced expenditure associated with the High Value Food Manufacturing Centre in 2016–17 ($0.5 million)

• completion of the initiative to develop distinctive regional trademark brands for use by producers and businesses to promote their areas in 2015–16 ($0.4 million)

• reduced expenditure associated with the Agribusiness Investment Attraction Program (Agri-PACE) initiative in 2015–16 ($0.2 million)

partially offset by

• new initiative funding for the Northern Adelaide Food Park to grow industries, accelerate major projects and create jobs in 2016–17 ($5.0 million)

• expenditure associated with establishment of the Wine Industry Development Scheme to deliver a broad-based, strategic and flexible approach to industry development in 2016–17 ($1.8 million).

2015–16 Estimated Result/2015–16 Budget

The $5.0 million increase in expenses is primarily due to:

• expenditure associated with the Pinery Bushfire Recovery grant program in 2015–16 ($3.9 million)




• increase in expenditure associated with the detailed planning process supporting establishment of the Northern Adelaide Food Park in 2015–16 ($0.6 million)

• increase in expenditure associated with the High Value Food Manufacturing Centre in 2015–16 ($0.5 million)

• increase in expenditure associated with the Realising Opportunities in China for Food, Wine and Capability Development initiative in 2015–16 ($0.3 million)

partially offset by

• reduced costs associated with lending under the Farm Finance Concessional Loans, Drought Concessional Loans and Loans to Cooperatives schemes in 2015–16 ($1.5 million).

The $1.2 million decrease in income is primarily due to reduction in budgeted interest earnings associated with budgeted lending under the Farm Finance Concessional Loans, Drought Concessional Loans and Loans to Cooperatives schemes in 2015–16 ($1.6 million).

2015–16 Estimated Result/2014–15 Actual


• expenditure associated with the Pinery Bushfire Recovery grant program budgeted in 2015–16 ($3.9 million)

• expansion of new initiative funding associated with the detailed planning process supporting the establishment of the Northern Adelaide Food Park in 2015–16 ($1.9 million)


• increase in expenditure associated with the High Value Food Manufacturing Centre in 2015–16 ($0.7 million)

• increase in expenditure associated with the Realising Opportunities in China for Food, Wine and Capability Development initiative in 2015–16 ($0.4 million)

partially offset by

• reduced expenditure in line with functional budget transfer from the Department of State Development for food and wine related activities in 2015–16 ($0.5 million)

The $1.7 million decrease in income is primarily due to reduced Commonwealth Government funding for the Farm Finance Concessional Loans scheme in 2015–16 ($1.3 million).

Highlights 2015–16

• Finalised selection of a development site and partner and progressed detailed planning for Northern Adelaide Food Park.

• Established the South Australian Food Innovation Centre in December 2015 at the Waite Campus, Urrbrae.

• Finalised the 3-year China Agribusiness Initiative and Action Plan to foster industry engagement and market access for South Australian business in Shandong, Fujian, Hong Kong and other parts of China.

• Launched the award winning AgInsight South Australia interactive, multi-platform website portal that delivers comprehensive agricultural and economic data.

• Provided grants under both the Advanced Food Manufacturing Grants and the Co-Innovation Cluster Programs.



• Completed the second year of the 4 year Agribusiness Growth Program element of the Agribusiness Accelerator Program to food, beverage and wine industry small businesses.

• Provided grants under the second round of the Building South Australia’s Premium Food and Wine Credentials Grant Program.

• Supported regional food, wine and tourism projects under the Supporting Brands of Our Key Regions program.

Targets 2016–17

The Agriculture, Food and Wine division will implement key programs to support the further development of the agriculture, food and wine sectors including the South Australia food processing sectors. An enhanced program will build on the successes of the China Agribusiness Initiative and Action Plan to support South Australia’s economic priority — Premium food and wine produced in our clean environment and exported to the world, through the following targets:

• Complete site planning for the Northern Adelaide Food Park and commence on-site construction works.

• Implement the second stage of the establishment of the SA Food Innovation Centre — to co-locate key partners at the Waite Campus, Urrbrae.

• Increase the scope and reach of the Advanced Food Manufacturing Grants Program by partnering with the Commonwealth Government industry growth centre — Food Innovation Australia Limited.

• Implement a new wine industry development scheme to improve industry participation in marketing, cellar doors, and regional, national and international wine activities.

• Complete the third round of the Building South Australia’s Premium Food and Wine Credentials grant program for the food and beverage industry.

Sub-program 1.2: Aquaculture


Ensuring the sustainable development of South Australia’s aquaculture industry, with a statutory and regulatory responsibility for the planning and management of aquaculture in South Australia. These responsibilities are met through the zoning, granting and renewal of licences and leases under the Aquaculture Act 2001.

Through ensuring the ecologically sustainable development of the state’s aquatic resources, aquaculture will be a key contributor to South Australia’s economic priority — Premium food and wine produced in our clean environment and exported to the world, securing production and economic opportunities for the future.

2016–17 Budget

2015–16 Estimated


2014–15 Actual

$000 $000 $000 $000 Expenses ...................................................................... 2 727 3 131 3 599 2 432 Income .......................................................................... 1 580 1 554 2 234 1 381


FTEs as at June (No.) 20.8 20.6 21.3 17.0





The $0.4 million decrease in expenses is primarily due to once-off expenditure in 2015–16 to assist local oyster production following detection of Pacific Oyster Mortality Syndrome (POMS) in Tasmania ($0.3 million).



• a reduction in expenditure as a result of once-off reduced lease and licence fee revenue in 2015–16 following the fee setting process with industry ($0.5 million)

partially offset by

• once-off expenditure in 2015–16 to assist local oyster production following detection of POMS in Tasmania ($0.3 million).

The $0.7 million decrease in income is primarily due to once-off reduction in lease and licence fee revenue in 2015–16 following the fee setting process with industry ($0.5 million).



• reinstatement of the expenditure base in 2015–16 following the fee setting process with industry ($0.4 million)

• once-off expenditure in 2015–16 to assist local oyster production following detection of POMS in Tasmania ($0.3 million).


• Implemented the outcomes of the review of the Aquaculture Regulations 2005, including updates to administrative processes, and improvements to navigational and infrastructure marking and environmental monitoring.

• Finalised and implemented the outcomes of the review of land-based aquaculture categories and requirements.

• Finalised the Aquaculture (Zones — Tumby Bay) Policy.

• Implemented new requirements for the oyster aquaculture sector to minimise environmental impacts.

• Responded to the threat of POMS which devastated the Tasmanian oyster farming industry. The virus was prevented from being introduced into South Australia through immediate bans on importing live oysters and ongoing prevention measures.

Targets 2016–17

• Review the Eastern Spencer Gulf Aquaculture Zone Policy to enable a diversity of species to be farmed in this region, including finfish.

• Implement on-ground actions to address the impact of POMS to South Australia’s oyster aquaculture sector.

• Implement a reporting system for regional performance of aquaculture to support public access to data, industry development and investment attraction.



Sub-program 1.3: Fisheries


The management and administration of the living marine and freshwater resources of South Australia, as required under the Fisheries Management Act 2007. This includes the development and implementation of appropriate management plans for commercial fishing, recreational fishing and Aboriginal traditional fishing, development of government policy for sustainable resource access and allocation, and the administration of licensing and compliance services.

Through ensuring the ecologically sustainable development of the state’s aquatic resources, this sub-program will be a key contributor to South Australia’s economic priority — Premium food and wine produced in our clean environment and exported to the world — securing production and economic opportunities for the future.

2016–17 Budget

2015–16 Estimated


2014–15 Actual

$000 $000 $000 $000 Expenses ...................................................................... 15 073 15 675 15 213 17 848 Income .......................................................................... 8 193 8 999 8 256 7 934


FTEs as at June (No.) 84.5 84.6 84.8 85.9



The decrease in income and expenses is primarily due to once-off externally funded project expenditure in 2015–16 ($0.7 million).


The increase in income and expenses is primarily due to once-off externally funded project expenditure in 2015–16 ($0.7 million).



• purchase of commercial fishing licences and entitlements under the SA Marine Parks Commercial Fisheries Voluntary Catch/Effort Reduction Program in 2014–15 ($3.3 million)

partially offset by

• once-off externally funded project expenditure in 2015–16 ($0.7 million).

The $1.1 million increase in income is primarily due to once-off external funding for projects undertaken in 2015–16 ($0.7 million).


• Undertook a review of the King George Whiting Fishery to take account of stock assessment outcomes.

• Implemented the South Australian Fisheries Harvest Strategy Policy.



• Finalised and implemented a new management plan for the commercial Lakes and Coorong Fishery.

• Developed an artificial reef trial project in the Gulf of St Vincent to provide improved opportunities for recreational fishers.

Targets 2016–17

• Implement the Management Plan for Recreational Fishing in South Australia, incorporating the outcomes of the recreational fishing review.

• Implement the Gulf St Vincent Prawn Fishery Management Plan.

• Build a habitat enhancement program to support ongoing fishing opportunities through native shellfish reef restoration.

Sub-program 1.4: South Australian Research and Development Institute


South Australia’s principal provider of primary industries, natural resources and biosciences research and development, working in collaboration with state, national and international collaborators and investors. SARDI’s strategic, applied and adaptive research provides the innovation needed to underpin the competitive advantage achieved through the production of premium food and wine through secure and sustainable production systems.

2016–17 Budget

2015–16 Estimated


2014–15 Actual

$000 $000 $000 $000 Expenses ...................................................................... 82 922 76 372 77 521 77 080 Income .......................................................................... 50 381 59 211 50 795 48 859


FTEs as at June (No.) 400.4 408.9 407.1 415.5




• payments to consolidated account for budgeted asset sales in 2016–17 ($3.7 million)

• payments to consolidated account for budgeted Flaxley Research Centre asset sales in 2016–17 ($2.1 million)

• once-off reclassification to investing expenditure in 2015–16 for research equipment ($0.9 million)

• once-off budgeted costs to prepare assets for sale in 2016–17 ($0.3 million).

The $8.8 million decrease in income is primarily due to the recognition of resources received free of charge with the transfer of the Lincoln Marine Science Centre from the Flinders University in 2015–16 ($9.2 million).





• lower than budgeted payments to consolidated account for asset sales in 2015–16 ($1.9 million)


• lower than budgeted expenditure to prepare assets for sale in 2015–16 ($0.3 million)

partially offset by

• externally funded project related expenditure increase in 2015–16 ($1.5 million)

• higher than budgeted payments to consolidated account for Flaxley Research Centre asset sales in 2015–16 ($1.0 million).

The $8.4 million increase in income is primarily due to:

• once-off revenue associated with the transfer of the Lincoln Marine Science Centre from the Flinders University in 2015–16 ($9.2 million)

• higher than expected externally funded projects undertaken in 2015–16 ($1.5 million)

partially offset by

• lower than budgeted net proceeds for asset sales in 2015–16 ($2.2 million).



• once-off grant payment to the University of Adelaide for Roseworthy redevelopment in 2014–15 ($0.9 million)


• lower budgeted costs to prepare assets for sale in 2015–16 ($0.2 million)

partially offset by

• externally funded project related expenditure increase in 2015–16 ($1.0 million).


• once-off revenue associated with the transfer of the Lincoln Marine Science Centre from the Flinders University in 2015–16 ($9.2 million)

• higher revenue to reflect increased cost recovery together with improved leverage from externally funded grants in 2015–16 ($1.1 million)

• higher than expected externally funded projects undertaken in 2015–16 ($1.0 million)

partially offset by

• higher than budgeted revenue for sales and livestock valuation for research farms and higher diagnostic services fees in 2014–15 ($0.9 million).


• Four new pasture species released for intensive and extensive livestock production.

• Continued to progress a robust molecular test for phylloxera to trial delivery phase, in conjunction with Vinehealth Australia.

• New dietary formulations for yellow tail kingfish aquaculture were developed and implemented.



Targets 2016–17

• Assess opportunities for utilising food loss and industry waste for bioactives and bioenergy in Riverland region.

• Employ new regionally based research staff to deliver regionally targeted research, as part of the Grants Research and Development Corporation bilateral program.

• Produce oyster spat to secure production for South Australia’s oyster growers.

• Develop proof of concept wool cortisol measurement for sheep well-being.

• Assess feasibility of land-based aquaculture in the Two Wells to Whyalla Regional Corridor.

Sub-program 1.5: Rural Services


Rural Solutions SA is the key rural services delivery agent for PIRSA, with a focus on project and program management, community and industry engagement, and grant management. Rural Solutions SA provides the critical interface between PIRSA and regional communities and manages the regional customer service centres. Rural Solutions SA is the strategic coordinator of sustainable agriculture programs for PIRSA and through strong connections with stakeholders coordinate and lead policy response in areas including national drought policy and local programs, emergency recovery, water policy as it applies to production, land use policy in support of improved productivity and maintenance/growth of our industries, and Aboriginal engagement.

2016–17 Budget

2015–16 Estimated


2014–15 Actual

$000 $000 $000 $000 Expenses ...................................................................... 12 625 11 574 16 445 9 454 Income .......................................................................... 10 842 8 674 13 788 6 657


FTEs as at June (No.) 91.1 81.3 101.9 84.0




• reinstatement of expenditure base in 2016–17 following lower than expected externally funded projects undertaken in 2015–16 ($2.0 million)

partially offset by

• reduced expenditure for the New Horizons soil improvement project in 2016–17 ($0.6 million).

The $2.2 million increase in income is primarily due to reinstatement of revenue base in 2016–17 following lower than expected externally funded projects undertaken in 2015–16 ($2.0 million).


The decrease in expenses and income is primarily due to less than expected externally funded projects undertaken in 2015–16 ($5.0 million).




The increase in expenses and income is primarily due to an increase in externally funded projects undertaken in 2015–16 ($2.0 million).


• Listing of the Northern Adelaide Irrigation Scheme (NAIS) on Infrastructure Australia’s priority list.

• Secured a commitment from the Commonwealth Government to provide $3.7 million of National Water Infrastructure Development Funds for South Australia to undertake feasibility studies and develop business cases for water infrastructure projects.

• Continued with the three New Horizons soil improvement program trial sites demonstrating increased yields of 70 per cent to 200 per cent with potential to increase in the value of broadacre crop and livestock pasture production across the state.

Targets 2016–17

• Secure partnerships to continue the New Horizons soil improvement program.

Sub-program 1.6: Biosecurity


Develop and implement policies, legislation, regulatory frameworks, surveillance, preparedness and response programs that protect the economy, environment, communities and human health from the negative impacts associated with the entry, establishment or spread of pests, diseases and contaminants in the areas of animal health, aquatic animal health, marine pests, vertebrate pests, weeds, plant health, food borne pathogens from primary industries and chemical residues.

The programs delivered by Biosecurity SA underpin market access, and maintain disease freedom and control, contributing to the success of South Australia’s economic priority — Premium food and wine produced in our clean environment and exported to the world.

2016–17 Budget

2015–16 Estimated


2014–15 Actual

$000 $000 $000 $000 Expenses 29 954 34 690 27 834 29 217 Income 9 828 13 946 11 004 8 632


FTEs as at June (No.) 171.4 167.6 168.5 161.8




• once-off expenditure for fruit fly eradication responses in metropolitan Adelaide in 2015–16 ($1.5 million)

• once-off externally funded expenditure to deliver sheep industry projects in 2015–16 ($1.4 million)



• reduction in Commonwealth Government funded expenditure for pest animal and weed management projects in 2016–17 ($1.3 million)

• delivery of Giant Pine Scale eradication response in 2015–16 ($0.7 million)

• once-off externally funded project expenditure including sterile fruit flies, rabbit control and weeds of national significance in 2015–16 ($0.5 million)

partially offset by

• new initiative funding for Growth in Horticultural Production and Exports in 2016–17 ($0.5 million).

The $4.1 million decrease in income is primarily due to:

• once-off external funding to deliver sheep industry projects in 2015–16 ($1.4 million)

• Commonwealth Government funding for pest animal and weed management projects delivered in 2015–16 ($1.3 million)

• once-off external funding of project expenditure including sterile fruit flies, rabbit control and weeds of national significance delivered in 2015–16 ($1.0 million)

• Commonwealth and other state government funding associated with Giant Pine Scale eradication response in 2015–16 ($0.7 million).



• Commonwealth Government funded expenditure for pest animal and weed management projects in 2015–16 ($1.8 million)

• once-off externally funded project expenditure including sterile fruit flies, rabbit control and weeds of national significance ($1.5 million)



• once-off expenditure associated with Giant Pine Scale eradication response in 2015–16 ($0.7 million).


• once-off external funding of project expenditure including sterile fruit flies, rabbit control and weeds of national significance delivered in 2015–16 ($2.1 million)

• Commonwealth Government funding for pest animal and weed management projects delivered in 2015–16 ($1.8 million)


• Commonwealth Government and state government funding associated with Giant Pine Scale eradication response in 2015–16 ($0.7 million)

partially offset by

• reduction in budgeted cost recovery in 2015–16 ($3.0 million).





• Commonwealth Government funded expenditure for pest animal and weed management projects in 2015–16 ($1.8 million)

• once-off externally funded project expenditure including sterile fruit flies, rabbit control and weeds of national significance in 2015–16 ($1.5 million)

• increased expenditure for fruit fly eradication responses in 2015–16 ($0.8 million)


• once-off expenditure associated with Giant Pine Scale eradication response in 2015–16 ($0.7 million)

partially offset by

• reduction in South Australia's commitment to national eradication programs in accordance with the Intergovernmental Agreement on Biosecurity in 2015–16 ($0.9 million).


• once-off external funding of project expenditure including sterile fruit flies, rabbit control and weeds of national significance in 2015–16 ($2.2 million)

• increase in Commonwealth Government funding for pest animal and weed management projects in 2015–16 ($1.8 million)

• increase in external funding to deliver sheep industry projects in 2015–16 ($0.4 million)

• Commonwealth and other state government funding associated with Giant Pine Scale eradication response in 2015–16 ($0.7 million).


• Commenced construction of the National Sterile Insect Technology Facility at Port Augusta.

• Deployed the new MAX emergency response platform, utilised during the POMS incident.

• Delivered relief and recovery services to livestock properties affected by the Pinery bushfire.

• Successfully deployed giant pine scale eradication response in South Australia.

• Successfully deployed the largest fruit fly response for 14 years in metropolitan Adelaide to eradicate separate incursions of Mediterranean fruit fly in inner southern suburbs.

Targets 2016–17

• Commence review of declared animal policies to protect the state’s primary industries, natural environments and public safety from the impacts of vertebrate pests.

• Commence implementation of One Biosecurity framework for livestock.

• Establish the Adelaide Hills and Northern Adelaide Plains Pest Free Area.

• Commission the National Sterile Insect Technology Facility at Port Augusta.

• Implement legislative framework for poppy cultivation in South Australia.

• Manage release of second generation rabbit bio-control virus in South Australia.



Sub-program 1.7: South Australian River Murray Sustainability


The $265 million South Australian River Murray Sustainability Program (SARMS) is funded by the Commonwealth Government to support the sustainability of South Australian River Murray communities through investment in irrigation efficiencies, water returns, irrigation industry assistance and regional economic development. The program will return 40 gigalitres of water to the River Murray system and will contribute towards South Australia’s implementation of the Murray-Darling Basin Plan.

SARMS will assist South Australian Murray-Darling Basin industries and communities to prepare for the challenges presented by future climate change and changed River Murray operations as a result of implementation of the Murray-Darling Basin Plan.

2016–17 Budget

2015–16 Estimated


2014–15 Actual

$000 $000 $000 $000 Expenses ...................................................................... 81 143 85 140 80 355 47 374 Income .......................................................................... 65 835 84 310 80 155 48 949

Net cost of sub-program 15 308 830 200 -1 575

FTEs as at June (No.) 17.0 17.0 17.0 14.7




• reduced expenditure for regional economic development activities in 2016–17 ($11.3 million)

• once-off reclassification from investing expenditure in 2015–16 for the Loxton Research Centre Redevelopment ($0.6 million)

partially offset by

• increased expenditure for irrigation industry improvement activities in 2016–17 ($7.9 million).

The $18.5 million decrease in income is primarily due to lower Commonwealth Government funding in 2016–17 for irrigation industry improvement activities ($10.0 million) and regional economic development activities ($8.5 million).



• increased expenditure for regional economic development activities in 2015–16 ($7.1 million)

• once-off reclassification from investing expenditure in 2015–16 for the Loxton Research Centre Redevelopment ($0.6 million)

partially offset by

• reduced expenditure for irrigation industry improvement activities in 2015–16 ($3.0 million).

The $4.2 million increase in income is primarily due to higher than budgeted funding from the Commonwealth Government in 2015–16 for regional economic development activities ($4.1 million).





• increased expenditure in 2015–16 for irrigation industry improvement activities ($23.9 million) and regional economic development activities ($13.3 million)

• once-off reclassification from investing expenditure in 2015–16 for the Loxton Research Centre Redevelopment ($0.6 million).

The $35.4 million increase in income is primarily due to increased funding from the Commonwealth Government in 2015–16 for irrigation industry improvement activities ($28.9 million) and regional economic development activities ($6.5 million).


• Continued to deliver the $240 million Irrigation Industry Improvement Program, including contracting round two projects, completing round three application assessments, and returning 33 gigalitres of water to the Commonwealth Government.

• Commenced redevelopment of the Loxton Research Centre to support regional development.

• Continued to deliver the Industry-Led Research Sub-Program to improve South Australian River Murray regional productivity and innovation, including contracting of round two projects.

• Continued to deliver the Regional Development and Innovation Fund to support regional development, employment opportunities and economic diversification in the River Murray Region, including contracting of round two and three projects.

Targets 2016–17

• Continue to deliver the $240 million Irrigation Industry Improvement Program, including contracting of round three projects.

• Complete redevelopment of the Loxton Research Centre to support regional development.

• Support grantees to complete delivery of the majority of projects under the Industry-Led Research Sub-Program to improve South Australian River Murray regional productivity and innovation.

• Support grantees to complete delivery of the majority of projects under the Regional Development and Innovation sub-program to support regional development, employment opportunities or economic diversification in the River Murray Region.



Program 2: Forestry Policy


Lead the development of employment and growth opportunities in the forest industry, regional development and the provision of services from the state government’s forest estate.


2016–17 Budget

2015–16 Estimated


2014–15 Actual

$000 $000 $000 $000

Expenses Employee benefit expenses.......................................... 693 712 784 832 Supplies and services ................................................... 433 420 461 397 Grants and subsidies .................................................... 6 6 — — Intra-government transfers ........................................... 5 113 565 6 502 —

Total expenses 6 245 1 703 7 747 1 229

Income

Sales of goods and services ......................................... — — — 2

Other income ................................................................ — — — 2

Total income — — — 4


FTEs as at June (No.) 5.1 5.1 5.2 5.4



The $4.5 million increase in expenses is primarily due to increased expenditure relating to the South East Forestry Partnership Program in 2016–17 ($4.5 million).


The $6.0 million decrease in expenses is primarily due to re-profiling expenditure for the South East Forestry Partnership Program from 2015–16 into future years ($5.9 million).


The $0.5 million increase in expenses is primarily due to expenditure relating to the South East Forestry Partnership Program in 2015–16 ($0.6 million).


• Transferred forest management services and ForestrySA employees to OneFortyOne Plantations, while maintaining contract requirements.

• Determined a way forward for the Wirrabara and Bundaleer forests by leading the inter-agency review group.

• Initiated a new industry engagement model with the forest and wood products sector.

• Monitored compliance with the ForestrySA forward sale government contract requirements.



Targets 2016–17

• Evaluate proposals for the Mid North Forests that provide value for government and opportunities for employment, and enhance environmental, cultural, heritage and community values.

• Deliver the South East Forestry Partnerships Program projects to improve the productivity and sustainability of industry in the South East.

• Continue monitoring compliance with the ForestrySA forward sale government contract requirements.



Program 3: Regional Development


Regions SA works with South Australia’s regional communities, industries and the three levels of government to identify, promote and support strategic economic development initiatives throughout regional South Australia.

The program leverages economic activity, job creation, infrastructure and investment capacity building through its grant programs and other initiatives. It facilitates activities that directly support South Australia’s economic priorities in regional South Australia.


2016–17 Budget

2015–16 Estimated


2014–15 Actual

$000 $000 $000 $000

Expenses Employee benefit expenses.......................................... 5 424 5 355 5 424 4 192 Supplies and services ................................................... 1 963 2 037 2 217 2 049 Grants and subsidies .................................................... 34 609 20 957 25 269 6 705 Intra-government transfers ........................................... 4 058 8 537 225 3 101 Other expenses ............................................................ 5 5 5 —

Total expenses 46 059 36 891 33 140 16 047

Income

Intra-government transfers ........................................... — 2 000 2 000 2 000

Interest revenue ............................................................ — — 120 —

Other income ................................................................ — — — 18

Total income — 2 000 2 120 2 018


FTEs as at 30 June (No.) 47.6 48.0 48.1 40.8




• increased expenditure associated with the Regional Development Fund in 2016–17 ($10.0 million)

• new initiative funding for extension of the North West Indigenous Pastoral Program in 2016–17 ($0.7 million)

• increased expenditure associated with the Riverland Sustainable Futures Fund in 2016–17 ($0.7 million)

partially offset by

• once-off expenditure in 2015–16 to assist with the support of Whyalla small businesses from the Jobs Accelerator Fund ($2.0 million).

The $2.0 million decrease in income is due to the reclassification of funding previously transferred from the Department of Environment, Water and Natural Resources under the former Save The River Murray Fund, to appropriation from 2016–17 ($2.0 million).






• once-off expenditure in 2015–16 to assist with the support of Whyalla small businesses from the Jobs Accelerator Fund ($2.0 million)

• expenditure for the Whyalla and Port Augusta Job Creation Package in 2015–16 ($0.3 million)

partially offset by

• lower than budgeted expenditure for the Riverland Sustainable Futures Fund in 2015–16 with carryover into 2016–17 ($1.5 million)

• lower than budgeted expenditure for the Job Accelerator Fund with carryover of funds into future years ($0.6 million).




• increased expenditure associated with the Job Accelerator Fund in 2015–16 ($2.2 million)


• increase in expenditure associated with Regional Development Australia in 2015–16 ($0.4 million)

• expenditure for the Whyalla and Port Augusta Job Creation Package in 2015–16 ($0.3 million)

partially offset by

• reduction in expenditure associated with the Riverland Sustainable Futures Fund in 2015–16 ($1.1 million).


• Co-invested in regional infrastructure to strengthen industries, develop economies, and grow capabilities as a foundation for jobs and economic growth through the Regional Development Fund’s Major Projects Program and Community Infrastructure Program.

• Provided a $7 million economic assistance package for the Upper Spencer Gulf and Outback including up to $5 million from Round 3 of the Regional Development Fund, and a once-off $2 million Upper Spencer Gulf and Outback Futures Program.

• Provided $2 million for the Regional Youth Traineeship program which engaged 57 young unemployed people to undertake a two year certificate qualification and traineeship in regional Councils and other local governing authorities.

Targets 2016–17

• Continue to support projects and initiatives through the Regional Development Fund that provide infrastructure, drive economic growth, create jobs and leverage public and private sector investment in the regions.

• Contribute to co-designing the third Regional Summit for regional South Australia.



• Expand the North West Indigenous Pastoral Program to upgrade on-farm infrastructure and build a skilled workforce, providing employment opportunities for indigenous people.

• Provide $1 million from the Regional Development Fund towards South Australia’s $2 million co-contribution under the Commonwealth Government’s Mobile Black Spot Programme.



Primary Industries and RegionsStatement of comprehensive income

2016-17Budget

2015-16Estimated

Result

2015-16Budget

2014-15

Actual$000 $000 $000 $000

ExpensesEmployee benefit expenses

Salaries, wages, annual and sick leave............................. 75 805 74 315 76 023 71 957Long service leave............................................................. 3 708 3 617 3 664 3 920Payroll tax.......................................................................... 3 839 3 846 3 929 4 203Superannuation.................................................................. 8 440 8 540 8 674 7 801Other.................................................................................. 1 435 1 421 1 421 1 182

Supplies and servicesGeneral supplies and services........................................... 53 087 63 123 57 641 51 550Consultancy expenses....................................................... 583 572 572 177

Depreciation and amortisation.............................................. 5 835 5 723 5 968 5 845Borrowing costs.................................................................... 616 265 1 778 831Grants and subsidies............................................................ 125 866 111 384 108 299 62 154Intra government transfers.................................................... 9 892 11 493 7 423 3 843Other expenses..................................................................... 7 714 2 599 3 152 1 723

Total expenses 296 820 286 898 278 544 215 186

IncomeCommonwealth revenues..................................................... 70 946 91 726 83 298 53 633Intra-government transfers.................................................... 16 799 21 994 19 639 19 235Other grants.......................................................................... 31 791 33 040 30 487 29 689Fees, fines and penalties...................................................... 1 989 1 973 5 014 2 180Sales of goods and services................................................. 22 069 17 855 24 768 17 213Interest revenues.................................................................. 2 138 2 010 3 532 2 745Net gain or loss on disposal of assets.................................. 10 118 2 212 164Resources received free of charge....................................... — 9 173 — 12Other income........................................................................ 2 975 3 117 2 896 3 623

Total income 148 717 181 006 171 846 128 494


Income from/expenses to state government

IncomeAppropriation...................................................................... 126 885 104 124 104 085 90 746Other income...................................................................... — 93 — 3 025

Net income from/expenses to state government 126 885 104 217 104 085 93 771

Net Result -21 218 -1 675 -2 613 7 079

Other comprehensive incomeChanges in property, plant and equipment assetrevaluation surplus............................................................... — -859 — 1 387

Total comprehensive result -21 218 -2 534 -2 613 8 466



Primary Industries and RegionsStatement of financial position

2016-17Budget

2015-16Estimated

Result

2015-16Budget

2014-15

Actual$000 $000 $000 $000

AssetsCurrent assetsCash and cash equivalents................................................... 85 796 120 594 81 211 147 660Receivables.......................................................................... 45 796 29 796 67 935 23 118Inventories............................................................................ 112 112 181 112Other current assets............................................................. 194 194 173 194Non-current assets held for sale........................................... 22 2 954 — 3 919

Total current assets 131 920 153 650 149 500 175 003

Non current assets

Financial assets.................................................................... 4 518 4 518 4 519 4 518Land and improvements....................................................... 99 098 101 469 92 986 85 756Plant and equipment............................................................. 18 425 15 870 17 063 12 050Intangible assets................................................................... 3 235 3 787 2 387 4 326Biological assets — other..................................................... 1 807 1 807 1 918 1 807Other non-current assets...................................................... 45 45 58 45

Total non-current assets 127 128 127 496 118 931 108 502

Total assets 259 048 281 146 268 431 283 505

LiabilitiesCurrent liabilitiesPayables............................................................................... 12 911 12 790 11 033 12 537Short-term borrowings.......................................................... 20 293 22 293 35 206 25 600Employee Benefits

Salaries and wages........................................................... 1 139 1 231 1 330 534Annual leave..................................................................... 6 181 5 882 5 780 5 583Long service leave............................................................ 2 511 2 374 2 056 2 237Other................................................................................. 717 717 485 717

Short-term provisions............................................................ 420 412 511 404Other current liabilities.......................................................... 15 513 15 512 14 601 15 453

Total current liabilities 59 685 61 211 71 002 63 065

Non current liabilitiesLong-term borrowings........................................................... 3 403 3 403 9 303 3 403Long-term employee benefits

Long service leave............................................................ 23 641 22 835 20 967 22 029Long-term provisions............................................................ 1 375 1 402 1 952 1 317Other non-current liabilities................................................... 1 020 1 153 83 15

Total non-current liabilities 29 439 28 793 32 305 26 764

Total liabilities 89 124 90 004 103 307 89 829

Net assets 169 924 191 142 165 124 193 676



Primary Industries and RegionsStatement of financial position

2016-17Budget

2015-16Estimated

Result

2015-16Budget

2014-15

Actual$000 $000 $000 $000

Equity

Retained earnings................................................................. 131 607 152 847 127 634 154 522Asset revaluation reserve..................................................... 38 317 38 295 37 490 39 154

Total equity 169 924 191 142 165 124 193 676

Balances as at 30 June end of period.



Primary Industries and RegionsStatement of cash flows

2016-17Budget

2015-16Estimated

Result

2015-16Budget

2014-15

Actual$000 $000 $000 $000

Operating activitiesCash outflowsEmployee benefit payments................................................... 92 020 89 551 91 523 85 049Payments for supplies and services...................................... 53 802 62 498 58 290 49 601Interest paid........................................................................... 616 265 1 778 848Grants and subsidies............................................................. 125 866 111 384 108 299 62 448GST paid................................................................................ — — — 9 402Intra-government transfers..................................................... 9 892 11 493 7 423 3 843Other payments..................................................................... 7 669 2 502 3 055 1 466

Cash used in operations 289 865 277 693 270 368 212 657

Cash inflowsIntra-government transfers..................................................... 16 799 21 994 19 639 21 081Commonwealth receipts........................................................ 70 946 91 726 83 298 62 883Other grants........................................................................... 31 791 33 040 30 487 26 865Fees, fines and penalties....................................................... 1 989 1 973 5 014 2 180Sales of goods and services.................................................. 22 069 9 855 16 768 16 663Interest received.................................................................... 2 138 2 010 3 532 2 070GST received......................................................................... — — — 8 600Other receipts........................................................................ 2 975 3 117 2 896 3 434

Cash generated from operations 148 707 163 715 161 634 143 776

State government

Appropriation.......................................................................... 126 885 104 124 104 085 90 746Other receipts........................................................................ — 93 — 3 025

Net cash provided by state government 126 885 104 217 104 085 93 771

Net cash provided by (+)/used in (-) operating activities -14 273 -9 761 -4 649 24 890

Investing activities

Cash outflowsPurchase of property, plant and equipment........................... 9 547 16 446 12 446 4 431Purchase of intangibles.......................................................... 15 20 20 1 422Advances paid....................................................................... 19 000 5 093 14 000 450Other investing payments...................................................... — — — 17

Cash used in investing activities 28 562 21 559 26 466 6 320

Cash inflowsProceeds from sale of property, plant and equipment........... 7 037 1 146 2 212 1 858Repayment of advances........................................................ 3 000 6 415 3 315 5 712Other receipts........................................................................ — — — 1 439

Cash generated from investing activities 10 037 7 561 5 527 9 009

Net cash provided by (+)/used in (-) investing activities -18 525 -13 998 -20 939 2 689



Primary Industries and RegionsStatement of cash flows

2016-17Budget

2015-16Estimated

Result

2015-16Budget

2014-15

Actual$000 $000 $000 $000

Financing activities

Cash outflowsRepayment of borrowings...................................................... 3 000 24 307 3 300 14 456

Cash used in financing activities 3 000 24 307 3 300 14 456

Cash inflowsProceeds of borrowings......................................................... 1 000 21 000 1 000 20 000

Cash generated from financing activities 1 000 21 000 1 000 20 000

Net cash provided by (+)/used in (-) financing activities -2 000 -3 307 -2 300 5 544

Net increase (+)/decrease (-) in cash equivalents -34 798 -27 066 -27 888 33 123

Cash and cash equivalents at the start of the period 120 594 147 660 109 099 114 537

Cash and cash equivalents at the end of the period 85 796 120 594 81 211 147 660

Non cash transactions

Assets received (+)/donated (-) free of charge...................... — 9 173 — 12



Administered items for the Department of Primary Industries and RegionsStatement of comprehensive income

2016-17Budget

2015-16Estimated

Result

2015-16Budget

2014-15

Actual$000 $000 $000 $000


Salaries, wages, annual and sick leave............................. 713 650 602 585Payroll tax.......................................................................... — — — 2Superannuation.................................................................. — — — 1Other.................................................................................. 63 65 89 65

Supplies and servicesGeneral supplies and services........................................... 2 094 2 256 1 727 2 007

Grants and subsidies............................................................ 12 226 13 159 13 624 12 482Intra government transfers.................................................... 17 358 18 894 18 283 17 471Other expenses..................................................................... 91 568 108 239

Total expenses 32 545 35 592 34 433 32 852

IncomeIntra-government transfers.................................................... 2 2 769 —Fees, fines and penalties...................................................... 15 271 15 357 16 429 15 248Sales of goods and services................................................. 766 757 782 411Interest revenues.................................................................. 356 341 530 387Other income........................................................................ 11 033 11 075 11 024 10 567

Total income 27 428 27 532 29 534 26 613


IncomeAppropriation...................................................................... 4 702 4 749 4 701 4 872


Total comprehensive result -415 -3 311 -198 -1 367



Administered items for the Department of Primary Industries and RegionsStatement of financial position

2016-17Budget

2015-16Estimated

Result

2015-16Budget

2014-15

Actual$000 $000 $000 $000

AssetsCurrent assetsCash and cash equivalents................................................... 19 968 20 383 19 244 23 692Receivables.......................................................................... 321 321 272 321Inventories............................................................................ — — 193 —


Non current assets

Land and improvements....................................................... — — 55 —Plant and equipment............................................................. — — 12 —

Total non-current assets — — 67 —

Total assets 20 289 20 704 19 776 24 013

LiabilitiesCurrent liabilitiesPayables............................................................................... 1 708 1 708 524 1 706Employee Benefits

Salaries and wages........................................................... 4 4 5 4Other current liabilities.......................................................... 2 529 2 529 677 2 529



Net assets 16 048 16 463 18 570 19 774

Equity

Retained earnings................................................................. 16 048 16 463 18 560 19 774Asset revaluation reserve..................................................... — — 10 —

Total equity 16 048 16 463 18 570 19 774




Administered items for the Department of Primary Industries and RegionsStatement of cash flows

2016-17Budget

2015-16Estimated

Result

2015-16Budget

2014-15

Actual$000 $000 $000 $000

Operating activitiesCash outflowsEmployee benefit payments................................................... 776 715 691 655Payments for supplies and services...................................... 2 094 2 255 1 726 2 024Grants and subsidies............................................................. 12 226 13 159 13 624 11 276Intra-government transfers..................................................... 17 358 18 894 18 283 17 471Other payments..................................................................... 91 568 108 103


Cash inflowsIntra-government transfers..................................................... 2 2 769 —Fees, fines and penalties....................................................... 15 271 15 357 16 429 16 908Sales of goods and services.................................................. 766 757 782 419Interest received.................................................................... 356 341 530 396Other receipts........................................................................ 11 033 11 075 11 024 10 566


State government

Appropriation.......................................................................... 4 702 4 749 4 701 4 872


Net cash provided by (+)/used in (-) operating activities -415 -3 310 -197 1 632

Net increase (+)/decrease (-) in cash equivalents -415 -3 310 -197 1 632





Summary of major variations

The following commentary relates to variations between the 2016–17 Budget and the 2015–16 Estimated Result.

Statement of comprehensive income — controlled

Expenses



• payments to consolidated account for budgeted asset sales in 2016–17 ($5.8 million)

• new initiative funding for the Northern Adelaide Food Park to grow industries, accelerate major projects and create jobs in 2016–17 ($5.0 million)

• increased expenditure relating to the South East Forestry Partnership Program in 2016–17 ($4.5 million)

• annual indexation and enterprise bargaining agreement adjustments in 2016–17 ($3.9 million)

• expenditure associated with establishment of the Wine Industry Development Scheme to deliver a broad-based, strategic and flexible approach to industry development in 2016–17 ($1.8 million)

• new initiative funding for extension of the North West Indigenous Pastoral Program in 2016–17 ($0.7 million)

• funding for the Growth in Horticultural Production and Exports initiative in 2016–17 ($0.5 million)

partially offset by

• reduced expenditure under the South Australian River Murray Sustainability Program in 2016–17 ($3.4 million)

• reduced expenditure associated with the Pinery Bushfire Recovery grant program in 2016–17 ($3.1 million)

• efficiency savings across the department ($2.9 million)


• completion of detailed planning process supporting establishment of the Northern Adelaide Food Park in 2015–16 ($1.9 million)



• reduction in Commonwealth Government funded expenditure for pest animal and weed management projects in 2016–17 ($1.3 million)

• delivery of the Realising Opportunities in China for Food, Wine and Capability Development initiative in 2015–16 ($1.2 million)


• reduced expenditure for the New Horizons soil improvement project in 2016–17 ($0.6 million)

• once-off reclassification from investing expenditure in 2015–16 for the Loxton Research Centre redevelopment ($0.6 million)



• reduced expenditure associated with the High Value Food Manufacturing Centre in 2016–17 ($0.5 million)

• once-off expenditure in 2015–16 to assist local oyster production following detection of Pacific Oyster Mortality Syndrome in Tasmania. ($0.3 million).

Income


• lower Commonwealth Government funding for the South Australian River Murray Sustainability Program in 2016–17 ($18.5 million)

• recognition of resources received free of charge with the transfer of the Lincoln Marine Science Centre from the Flinders University in 2015–16 ($9.2 million)

• reclassification of funding previously transferred from the Department of Environment, Water and Natural Resources under the former Save The River Murray Fund, to appropriation from 2016–17 ($2.0 million)


• Commonwealth funding for pest animal and weed management projects delivered in 2015–16 ($1.3 million).

Statement of financial position — controlled

The $22.1 million decrease in total assets is primarily due to:

• budgeted asset sales ($7.0 million)

• continuing depreciation and amortisation charges on the department’s asset base ($5.8 million)

• a reduction in amounts advanced and repaid under the Loans to Cooperatives scheme in 2016–17 ($2.0 million)

• reductions in cash holdings in relation to funds held and used for:

– the South Australian River Murray Sustainability Program ($17.6 million)

– Drought Recovery Concessional Loans scheme ($9.5 million)

– Drought Concessional Loans scheme ($8.5 million)

partially offset by

• budgeted advances under the Drought Concessional Loans ($8.5 million) and Drought Recovery Concessional Loans schemes ($9.5 million)

• budgeted capital investment and minor works in 2016–17 ($9.6 million).

Statement of cash flows — controlled

The $4.5 million decrease in net operating cash flows is primarily due to:

• movement in the net cost of providing services (excluding depreciation) discussed under the statement of comprehensive income ($42.1 million) offset by amounts receivable and other accruals ($5.7 million) and the recognition of the Lincoln Marine Science Centre as a contributed asset from the Flinders University in 2015–16 ($9.2 million)

partially offset by

• an increase in 2016–17 appropriation and other receipts ($22.7 million).



The $4.5 million decrease in net investing cash flows is primarily due to:

• increased advances in 2016–17 made under the Drought Concessional Loans ($4.9 million) and Drought Recovery Concessional Loans schemes ($9.0 million)

• a decrease in the amount repaid from advances under the Loans to Cooperatives scheme in 2016–17 ($3.4 million)

partially offset by

• decreased capital expenditure in 2016–17 ($6.9 million)

• increased proceeds from budgeted asset sales in 2016–17 ($5.9 million).

The $1.3 million increase in net financing cash flows is primarily due to:

• reduced repayments for advances under the Farm Finance Concessional Loans ($10.0 million), Drought Concessional Loans ($7.9 million) and the Loans to Cooperatives schemes ($3.4 million)

partially offset by

• reduced borrowings following advances made under the Drought Concessional Loans ($10.0 million) and Drought Recovery Concessional Loans schemes ($10.0 million).

Statement of comprehensive income — administered items

The $2.8 million decrease in expenses is primarily due to once-off additional expenditure negotiated with industry for delivery of PIRSA programs in 2015–16 ($2.3 million).

Statement of financial position — administered items

No significant movements.

Statement of cash flows — administered items

The movements in cashflows are generally consistent with the changes discussed above under the Statement of Comprehensive Income and Statement of Financial Position.

Additional information for administered items

Additional information on administered items is included in the following table.



Additional information for administered items for the Department of Primary Industries and Regions Statement of cash flows

2016–17 Budget

2015–16 Estimated

Result 2015–16

Budget(a) 2014–15

Actual

$000 $000 $000 $000

Operating activities

Cash outflows Employee benefit payments

Parliamentary salaries and electorate expense allowances ........................................................................ 713 650 602 591 Various industry funds ...................................................... 63 65 89 64

Payments for supplies and services Various industry funds ...................................................... 2 094 2 255 1 726 2 024

Grants and subsidies Regulatory fees paid from Fisheries Research and Development Fund ............................................................ 534 515 797 533 Regulatory fees paid from Aquaculture Resource Management Fund ............................................................ 165 165 326 365 Forestry community service obligation payment ............... 3 590 3 709 3 709 2 924 Various industry funds ...................................................... 7 937 8 770 8 792 7 454

Intra-government transfers Regulatory fees transferred from Fisheries Research and Development Fund ..................................................... 12 091 12 488 12 600 11 722 Regulatory fees transferred from Aquaculture Resource Management Fund............................................ 1 705 1 630 2 162 1 305 Forestry community service obligation payment ............... 399 390 390 380 Various industry funds ...................................................... 3 163 4 386 3 131 4 064

Other payments Various industry funds ..................................................... 91 568 108 103


Cash inflows

Intra-government transfers Various industry funds ...................................................... 2 2 769 —

Fees, fines and penalties Fisheries licence fees ....................................................... 14 073 14 171 14 254 15 965 Aquaculture licence fees ................................................... 1 145 1 133 1 798 895 Various industry funds ...................................................... 53 53 377 48

Sales of goods and services Various industry funds ..................................................... 766 757 782 419

Interest received Various industry funds ...................................................... 356 341 530 396

Other receipts Various industry funds ...................................................... 11 033 11 075 11 024 10 566




2016–17 Budget

2015–16 Estimated

Result 2015–16

Budget(a) 2014–15

Actual

$000 $000 $000 $000

State government Appropriation

Parliamentary salaries and electorate expense allowances ........................................................................ 713 650 602 594 Forestry community service obligation payment ............... 3 989 4 099 4 099 4 278


Net cash provided by (+)/used in (-) operating activities -415 -3 310 -197 1 632

Net increase (+)/decrease (-) in cash equivalents -415 -3 310 -197 1 632

Cash and cash equivalents at the start of the financial year (as at 1 July) 20 383 23 693 19 441 22 060

Cash and cash equivalents at the end of the financial year (as at 30 June) 19 968 20 383 19 244 23 692

(a) The 2015–16 Budget includes the Dog Fence Board.



Agency: Department of State Development

Premier Minister for Employment Minister for Aboriginal Affairs and Reconciliation Minister for Manufacturing and Innovation Minister for Automotive Transformation Minister for Science and Information Economy Minister for the Arts Minister for Health Industries Minister for State Development Minister for Mineral Resources and Energy Minister for Water and the River Murray Minister for Investment and Trade Minister for Small Business Minister for Higher Education and Skills


State Development


Contents

Objective .......................................................................................................................................... 52 Ministerial responsibilities ................................................................................................................ 53 Ministerial office resources .............................................................................................................. 54 Workforce summary ........................................................................................................................ 54 Program net cost of services summary ........................................................................................... 55 Investing expenditure summary ...................................................................................................... 56 Program 1: Office of the Economic Development Board ............................................................. 58 Program 2: Industry and Innovation ............................................................................................. 60 Program 3: Aboriginal Affairs and Reconciliation ........................................................................ 67 Program 4: Science, Technology and Information Economy ...................................................... 70 Program 5: Arts South Australia................................................................................................... 74 Program 6: Health Industries ....................................................................................................... 83 Program 7: Mineral Resources and Energy ................................................................................. 85 Program 8: Water Industry Technical and Safety Regulation...................................................... 98 Program 9: Growing Small Business ......................................................................................... 100 Program 10: International Engagement, Trade, Migration and International Education ............. 106 Program 11: Investment Attraction South Australia ..................................................................... 110 Program 12: Employment and Skills Formation .......................................................................... 113 Financial statements ..................................................................................................................... 121 Summary of major variations......................................................................................................... 129 Additional information for administered items ............................................................................... 132

State Development


Objective

As the lead agency for six of the 10 South Australian economic priorities, the Department of State Development is responsible for driving economic growth and creating jobs.

The department supports South Australia’s economic transformation under priorities of:

• unlocking the full potential of the state’s resources, energy and renewable assets

• a globally recognised leader in health research and ageing

• the Knowledge State — attracting a diverse student body and commercialising our research

• growth through innovation

• promoting our international connections and engagement

• ensuring our small businesses have access to capital and global markets.

The department brings together responsibility for the state’s growing resources and energy portfolio, the transformation to high-value manufacturing and responsibility for training, employment and skills initiatives and science. The department works in close partnership with business, the education sector, community and key stakeholders to harness South Australia’s expertise in innovation, skills development and industry transformation.

The department also provides leadership for cross-government policy development on Aboriginal affairs, reconciliation and Aboriginal economic development. This includes skills development, job creation, business development and sustainable employment for Aboriginal people, including support for Aboriginal young people and those living in regional and remote South Australia.

The department is also responsible for maximising the social and economic contribution made by the arts and driving opportunities to grow creative industries through innovation, as well as high-value technology sectors, including medical research and biotechnology.

Increasing the focus on innovation will be crucial to assisting all sectors move up the value chain through more advanced techniques and services.

The department also has responsibility for implementing the automotive transformation strategy for South Australia, together with the Commonwealth Government’s Growth Fund.

The department drives South Australia’s continuing high-growth and high-value sectors including minerals and resources, information and communications technology and advanced manufacturing. It also coordinates the state government's engagement with small to medium businesses, ensuring local firms have access to growing supply chain opportunities in sectors such as oil and gas, defence and aerospace.

The department further develops trade opportunities and the internationalisation of our economy. By working with the business and the higher education sectors it is building a smart future for South Australia.

State Development



Minister Programs Sub-programs

The Hon. JW Weatherill Premier

1. Office of the Economic Development Board

Nil

The Hon. KJ Maher Minister for Employment Minister for Aboriginal Affairs and Reconciliation Minister for Manufacturing and Innovation Minister for Automotive Transformation Minister for Science and Information Economy

2. Industry and Innovation 2.1 Manufacturing and Innovation 2.2 Automotive Transformation

3. Aboriginal Affairs and Reconciliation

Nil

4. Science, Technology and Information Economy

Nil

The Hon. JJ Snelling Minister for the Arts Minister for Health Industries

5. Arts South Australia 5.1 State Library and Statewide Information Services

5.2 Support to Public Libraries and Community Information Services

5.3 Access to Art, Museum and Heritage Services and Preservation of State Collections

5.4 Arts Industry Development and Access to Artistic Product

6. Health Industries Nil

The Hon. T Koutsantonis Minister for State Development Minister for Mineral Resources and Energy

7. Mineral Resources and Energy

7.1 Mineral Resources 7.2 Energy Resources 7.3 Olympic Dam Taskforce 7.4 Energy Policy and Programs 7.5 Electricity and Gas Technical

and Safety Regulation 7.6 RenewablesSA

The Hon. IK Hunter Minister for Water and the River Murray

8. Water Industry Technical and Safety Regulation

Nil

The Hon. MLJ Hamilton-Smith Minister for Small Business Minister for Investment and Trade

9. Growing Small Business 9.1 Opportunities for Small Business

9.2 Office of the Industry Advocate

10. International Engagement, Trade, Migration and International Education

Nil

11. Investment Attraction South Australia

Nil

The Hon. SE Close Minister for Higher Education and Skills

12. Employment and Skills Formation

12.1 Training, Employment, Skills and Higher Education

12.2 Quality Assurance and Regulatory Services

Note: Some program numbers have changed due to changes in ministerial responsibilities.

State Development


Administered items

In addition to the above responsibilities, the agency administers the following items on behalf of the ministers:

• Anangu Pitjantjatjara Yankunytjatjara (APY) Taskforce

• Ministers’ salaries and allowances pursuant to the Parliamentary Remuneration Act 1990

• Royalties

• South Australian Stolen Generations Reparations Scheme.

Statutes



2016–17 Budget

Cost of provision

Minister $000 FTE

The Hon. KJ Maher ................................................................................ 1 875 11.0

The Hon. MLJ Hamilton-Smith................................................................ 1 547 8.0

Workforce summary

FTEs as at 30 June

Agency 2016–17

Budget(a)

2015–16 Estimated

Result(a) 2014–15 Actual(b)

Department of State Development ...................................................... 956.5 990.3 1 000.5

Investment Attraction South Australia .................................................. 40.5 30.8 —

TAFE SA ............................................................................................. 2 190.2 2 295.2 2 323.7

Administered items for the Department of State Development ............ 2.0 2.0 3.0

Total (as per agency programs) 3 189.2 3 318.3 3 327.2

Less: FTEs transferred in:

Industry Participation Advocate from the Department of the Premier and Cabinet on 1 July 2015 ................................................................. — — 7.4

Total as per data published by the Office for the Public Sector (Department of the Premier and Cabinet) 3 189.2 3 318.3 3 319.8


(b) Data published by Office for the Public Sector (Department of the Premier and Cabinet).

State Development


Program net cost of services summary(a)

Net Cost of Services

2016–17 Budget

2015–16 Estimated


2014–15 Actual

Program $000 $000 $000 $000

1. Office of the Economic Development Board ........ 2 729 2 795 3 291 3 240

2. Industry and Innovation ........................................ 37 324 29 866 37 535 21 258

3. Aboriginal Affairs and Reconciliation .................... 12 864 13 705 13 712 12 481

4. Science, Technology and Information Economy .. 24 860 20 746 17 136 18 062

5. Arts South Australia ............................................. 153 583 148 950 151 834 146 850

6. Health Industries .................................................. 2 595 2 604 2 607 1 655

7. Mineral Resources and Energy ............................ 54 322 58 834 43 046 51 501

8. Water Industry Technical and Safety Regulation ............................................................ 222 -199 205 -42

9. Growing Small Business ...................................... 8 527 3 636 3 385 3 141

10. International Engagement, Trade, Migration and International Education ........................................ 18 115 17 567 16 118 13 408

11. Investment Attraction South Australia .................. 23 707 5 678 6 257 6 631

12. Employment and Skills Formation ........................ 298 822 356 187 341 993 376 387

Total 637 670 660 369 637 119 654 572

Reconciliation to agency net cost of providing services

Less: Net costs transferred in:

Industry Participation Advocate from the Department of the Premier and Cabinet on 1 July 2015 ............................................................. — — — 1 359

Equals: Net cost of providing services (as per agency statement of comprehensive income) 637 670 660 369 637 119 653 213

(a) The 2015–16 Budget amounts contained in the 2016–17 Agency Statements differs from those amounts contained in the 2015–16 Agency Statements to reflect internal resource allocations for each program. The 2015–16 Budget amounts in these statements have been amended for comparative purposes.

State Development



The 2016–17 investment program for State Development is $58.0 million.

The program features commencement of a project for the redevelopment of Her Majesty's Theatre, which will renew and restore the theatre to its original grandeur. The project will include a new entrance, foyer and bar facilities built on adjoining land and will allow for an expansion of the seating capacity in the auditorium, within the existing historical building, making it a more viable option for hosting touring productions.

Construction work on the Adelaide Festival Centre precinct, originally anticipated to commence during 2015–16, was delayed while negotiations on the project were concluded. Construction will now commence in 2016–17 to transform the Adelaide Festival Centre precinct into a unique cultural and entertainment hub within the Riverbank Precinct. Significant redevelopment will occur on the northern side of the Adelaide Festival Centre, while the entry and foyer spaces of the Festival Theatre and Dunstan Playhouse will also be upgraded and integrated with the new car park and Festival Plaza.

The remaining budget for the Brukunga Mine Site Remediation has been carried over to 2016–17, reflecting the staged approach towards the ultimate goal of full site remediation. A substantial program of technical studies has been undertaken to develop a sustainable solution for the site, with detailed designs now completed and the remediation strategy for the Days Creek domain having commenced during 2015–16.

Ongoing improvements in vocational education and information and communications technology (ICT) infrastructure are planned to underpin a more contemporary and efficient method of educational delivery.

Estimated

completion

Total project


2015–16 Estimated



New projects

Advancing the South Australia China Engagement Strategy ...........................

Jun 2017 160 160 — —

Her Majesty’s Theatre Redevelopment Jun 2019 35 200 1 555 — — Total new projects 35 360 1 715 — — Existing projects Adelaide Festival Centre Precinct ......... Jun 2018 63 322 39 762 8 470 32 912

Adelaide Festival Centre — remediation works ................................

Jun 2016 3 500 — 3 156 2 750

Battery Storage for Government Buildings — demonstration site ............

Jun 2016 1 000 — 1 000 —

Brukunga Mine ..................................... Jun 2017 12 900 7 099 250 7 702 Electronic Certificates of Compliance ... Jun 2016 432 — 432 — Enhanced Online Learning Systems .... Jun 2017 1 041 210 612 616 Film Set Construction Workshop .......... Jun 2016 918 — 918 918 Spatial Efficiency Projects .................... Jun 2017 6 856 1 574 3 072 1 691 State Drill Core Reference Library ........ Jun 2016 30 249 — 13 995 7 972 TAFE SA Campus Efficiency Program Jun 2018 2 421 500 1 421 — TAFE SA Scheduling Solution .............. Jun 2017 962 164 278 590 Training — System Development ......... Jun 2016 5 570 — 2 800 2 800 Small projects ....................................... n.a. 2 221 — 2 221 — Total existing projects 131 392 49 309 38 625 57 951

State Development


Estimated

completion

Total project


2015–16 Estimated


Investments Quarter $000 $000 $000 $000 Annual programs Annual Investing Programs .................. n.a. n.a. 3 170 1 838 3 350

IT Systems and Infrastructure............... n.a. n.a. 2 000 2 556 2 000

Minerals Asset Upgrade and Replacement ........................................ n.a. n.a. 171 1 529 964 Purchase of Plant and Equipment — TAFE SA .............................................. n.a. n.a. 767 175 1 237 Small programs .................................... n.a. n.a. 837 638 829 Total annual programs 6 945 6 736 8 380 Total investing expenditure 166 752 57 969 45 361 66 331

State Development


Program 1: Office of the Economic Development Board


Supports the Economic Development Board by providing a secretariat function as well as oversight and management of its assigned budget, including procurement and contracting management functions.


2016–17 Budget

2015–16 Estimated

Result 2015–16

Budget(a) 2014–15

Actual

$000 $000 $000 $000

Expenses Employee benefit expenses.......................................... 1 581 1 600 1 709 1 669 Supplies and services ................................................... 1 122 1 163 1 551 1 888 Depreciation and amortisation expenses ...................... 11 11 14 15 Grants and subsidies .................................................... — 5 — 95 Intra-government transfer expenses ............................. 4 5 9 5 Other expenses ............................................................ 11 11 8 10

Total expenses 2 729 2 795 3 291 3 682

Income Intra-government transfers ........................................... — — — 441 Other income ................................................................ — — — 1



FTEs as at 30 June (No.)(b) 6 6 7 7


(b) Includes an estimated allocation of FTEs associated with corporate overheads, which are allocated across programs in line with total program expenditure.



No major variations.


The $0.5 million decrease in expenses is primarily due to the transfer of resources to Program 11 — Investment Attraction South Australia from October 2015 to establish the Investment Attraction Unit ($0.4 million).



• once-off expenditure in 2014–15 for the defence industry investment advocacy ($0.4 million)

• the transfer of resources to Program 11 — Investment Attraction South Australia from October 2015 to establish the Investment Attraction unit ($0.4 million).

State Development


The $0.4 million decrease in income is primarily due to the once-off contribution in 2014–15 from the Department of the Premier and Cabinet for defence industry investment advocacy ($0.4 million).


• Conducted three formal workshops to independently establish a link between the Nuclear Fuel Cycle Royal Commission (NFCRC) and the South Australian and national business and entrepreneurial communities. Subsequent reports were submitted to the NFCRC.

• Identified 190 local companies, based on their potential for growth, to be active players in the Ageing Well economy, with the list further refined and provided to the Growing South Australia’s Companies program run through the University of South Australia Centre for Excellence.

• Undertook the creation and planning for a major state-based Ageing Well Forum/Summit based on the successful Shaping the Future of South Australia collaboration model.

• Provided specific strategic advice on innovative ecosystems, ageing and food and agricultural opportunities for visits to the United States of America and China to facilitate further investment.

• Facilitated the three South Australian universities being the lead institutions in Australia for the development of the new Research Engagement for Australia (REA) measure created by the Australian Academy of Technology and Engineering which measures research engagement between universities and end users.

• Commenced development of an industry plan for macroalgae (seaweed).

Targets 2016–17

• Identify up to 15 Ageing Well companies to progress through the Growing South Australia’s Companies program through the University of South Australia Centre for Excellence.

• Facilitate successfully the State Ageing Well Forum/Summit.

• Continue to develop an industry plan for macroalgae (seaweed) to assist the state’s industry transition.

• Complete the mapping and analysis of innovative companies located in South Australia to assist with industry growth and sustainable economic development.

State Development


Program 2: Industry and Innovation


Promote the rapid transformation of business and industry in South Australia by developing the innovative capacity of firms to implement new business models and services and enter new markets.

Through programs such as Manufacturing Works, Our Jobs Plan, and the Northern Economic Plan, support the state’s businesses to increase their capability to compete in local and international markets.

Sub-programs

2.1 Manufacturing and Innovation

2.2 Automotive Transformation


2016–17 Budget

2015–16 Estimated

Result 2015–16

Budget(a) 2014–15

Actual

$000 $000 $000 $000

Expenses Employee benefit expenses.......................................... 5 241 7 110 6 125 8 511 Supplies and services ................................................... 5 450 5 703 12 121 3 705 Depreciation and amortisation expenses ...................... 150 121 164 80 Borrowing costs ............................................................ — — — 1 Grants and subsidies .................................................... 25 427 16 708 18 380 7 237 Intra-government transfers ........................................... 1 232 1 087 647 1 824 Other expenses ............................................................ 78 115 98 55

Total expenses 37 578 30 844 37 535 21 413

Income Commonwealth Government revenues ........................ — — — 114 Intra-government transfers ........................................... 250 948 — 10 Sales of goods and services ......................................... 2 21 — 1 Other income ................................................................ 2 9 — 30

Total income 254 978 — 155





State Development


Sub-program 2.1: Manufacturing and Innovation


Support the development of high-tech manufacturing in South Australia based on the adoption of new technologies, the development of new products and services and business models.

The objectives of the sub-program are to:

• connect firms to research providers and knowledge networks in the private and public sectors

• assist manufacturing and the development of high-tech products that compete on value and enable the implementation of new business models

• implement business transformation strategies to improve productivity and competitiveness in local industry

• partner with local communities and business to support economic transformation.

2016–17 Budget

2015–16 Estimated


2014–15 Actual

$000 $000 $000 $000 Expenses ...................................................................... 16 329 24 478 21 352 16 336 Income .......................................................................... 254 978 — 155

Net cost of sub-program 16 075 23 500 21 352 16 181 FTEs as at 30 June (No.) 30 35 40 37




• reduced expenditure in 2016–17 in line with the forward plan for the manufacturing components of Our Jobs Plan ($4.5 million)

• implementation of operational efficiencies across the program ($1.5 million)

• movement in the allocation of overheads between financial years including, overhead FTEs, which are allocated across programs in line with total program expenditure ($1.2 million)

• a once-off grant in 2015–16 to the South Australian Oyster Growers Association to contribute to the development of an IT based management system to assist the monitoring and management of oysters ($0.4 million)

• reduced expenditure in 2016–17 in line with the forward plans for the Upper Spencer Gulf and Outback Regions support package ($0.5 million) and manufacturing and innovation programs ($0.7 million)

partially offset by

• increased expenditure in 2016–17 in line with the forward plan for the Centre of Business Growth ($0.7 million).

The $0.7 million decrease in income is due to a once-off contribution in 2015–16 from the Department of Premier and Cabinet associated with the transfer of responsibility for the Centre for Business Growth initiative.

State Development




• commencement of a job creation and support package for the Upper Spencer Gulf and Outback Regions in response to the closure of Alinta Energy sites in South Australia ($0.8 million)

• the re-profiling of expenditure for the manufacturing components of Our Jobs Plan ($2.1 million)

• the transfer of budget from DPC for a partnership with the University of South Australia’s Centre for Business Growth to deliver expert presentations and assistance programs to small and medium sized companies across the State ($0.7 million)


partially offset by

• reduced expenditure in 2016–17 due to the variation to the partnership agreement with Hills Limited for the operation of the Hills Innovation Centre ($1.0 million).


• a once-off contribution in 2015–16 from DPC associated with the transfer of responsibility for the Centre for Business Growth initiative ($0.7 million)

• contributions from the Department of Primary Industries and Regions (PIRSA) towards the Upper Spencer Gulf and Outback Regions support package ($0.3 million).



• increased expenditure in 2015–16 for the manufacturing components of Our Jobs Plan ($8.7 million)

• the transfer of budget from DPC in 2015–16 for a partnership with the University of South Australia’s Centre for Business Growth to deliver expert presentations and assistance programs to small and medium sized companies across the state ($0.7 million)

• commencement in 2015–16 of a job creation and support package for the Upper Spencer Gulf and Outback Regions in response to the closure of Alinta Energy sites in South Australia ($0.5 million)



partially offset by

• reduced expenditure in 2015–16 in line with the forward plans for the Manufacturing Works ($1.4 million) and Small Business Innovation Research programs ($1.0 million) and the Tonsley project ($0.4 million)

• targeted voluntary separation packages provided in 2014–15 ($0.4 million).


• a once-off contribution in 2015–16 from the Department of Premier and Cabinet associated with the transfer of responsibility for the Centre for Business Growth initiative ($0.7 million)

State Development


• contributions from PIRSA towards the Upper Spencer Gulf and Outback Regions support package ($0.3 million)

partially offset by

• a once-off Commonwealth Government contribution in 2014–15 towards the Strategic Asset Management Plan Water Specialist ($0.2 million).


• Delivered Manufacturing Works and Our Jobs Plan programs and initiatives resulting in new employment, increased revenue and value-add in the economy.

• Delivered the Regional Job Creation Grants Program for businesses in the Whyalla and Port Augusta regions affected by the closure of Alinta Energy’s Leigh Creek coal mine and Port Augusta power stations.

• Launched the Northern Economic Plan, a blueprint for economic development and social transformation in northern Adelaide, and set up a partnership and project delivery framework.

• Developed the commercial and technical capability of South Australian minerals and energy resources supply chains by supporting 18 collaborative projects through the Mining and Petroleum Services Centre of Excellence and 24 participant companies on the Plan for Accelerating Exploration (PACE) Supply Chain Development program.

• Continued to develop the Tonsley Precinct with Renewal SA.

• Continued to build local industry capability and capacity in supply chains through Industry Capability Network South Australia (ICN SA) with a focus on the resources, defence, clean energy and infrastructure sectors.

Targets 2016–17

• Continue to deliver Our Jobs Plan and Manufacturing Works initiatives to accelerate the transformation of the state’s economy towards productive and competitive industries that are consistent with South Australia’s economic priorities.

• Implement the Northern Economic Plan in partnership with local government, industry and the community.

• Develop a long term Upper Spencer Gulf economic development and social transformation transition plan in partnership with the Upper Spencer Gulf Common Purpose Group.

• Continue to build local industry capability through ICN SA and facilitate a target of $150 million of resources sector contracts to South Australian businesses over three years ending 2016–17.

• Continue to develop sales, marketing and export readiness for mineral and energy suppliers through the PACE Supply Chain Development Program.

Performance indicators

2016–17

Target

2015–16 Estimated

Result 2015–16

Target 2014–15

Actual

Applied Research Engagement Programs — Participating Companies Projects that are accepted into the programs must be technically feasible, have clear commercial potential and provide economic benefits to South Australia.

10 28 19 33

Applied Research Engagement Programs — Awareness Events and Industry Tours of Research Facilities

26 12 4 13

Business Transformation 16 24 24 34 Centre of Excellence projects 5 8 5 10

State Development


2016–17

Target

2015–16 Estimated

Result 2015–16

Target 2014–15

Actual

PACE Supply Chain Development Program Participant companies commenced in 2015–16 New indicator.

20 23 n.a. n.a.

Activity indicators

2016–17

Projection

2015–16 Estimated

Result 2015–16

Projection 2014–15

Actual

Manufacturing Technologies Centre Number of businesses to engage with centre New indicator.

360 n.a. n.a. n.a.

Sub-program 2.2: Automotive Transformation


Assist the automotive manufacturing industry to diversify and help the workforce transition to new jobs.

The objectives of this sub-program are to:

• support firms by providing assistance for the development and implementation of diversification strategies, with a particular focus on defence related supply chains

• support the workforce to effectively transition to new opportunities, by providing access to relevant skills and employment programs

• work with General Motors Holden on options for the future use of its Elizabeth site

• assist automotive companies and workforce to take advantage of the opportunities afforded by continuous naval ship building.

2016–17 Budget

2015–16 Estimated


2014–15 Actual

$000 $000 $000 $000 Expenses ...................................................................... 21 249 6 366 16 183 5 077 Income .......................................................................... — — — —





• increased expenditure in 2016–17 in line with the forward plan for the automotive ($8.5 million) and Northern Economic Plan ($1.9 million) components of Our Jobs Plan


• increased expenditure in 2016–17 in automotive programs ($1.5 million)

State Development


• commencement in 2016–17 of the youth resilience ($0.1 million), electric/diesel bus ($0.8 million) and advanced modular solutions ($0.5 million) components of the Northern Economic Plan.



• the carryover of expenditure from 2015–16 to 2016–17 for the Automotive Transformation — Business in Transition program ($1.4 million)

• the carryover of expenditure from 2015–16 to 2016–17 for the automotive ($6.0 million) and Northern Economic Plan ($1.0 million) components of Our Jobs Plan


• the transfer of resources to Program 11 — Investment Attraction South Australia from October 2015 to establish the Investment Attraction Unit ($0.4 million).


The $1.3 million increase in expenses is primarily due to increased expenditure in 2015–16 in line with the forward plan for the automotive and Northern Economic Plan components of Our Jobs Plan ($1.2 million).


• Engaged with all Tier 1 and 2 automotive supply chain manufacturers to support transition efforts.

• Maximised opportunities for supply chain companies in relevant State and Commonwealth Government programs.

• Streamlined guidelines and expanded support under both the Automotive Supplier Diversification Program and the Automotive Workers in Transition Program, including to the defence sector.

• Launched an automotive workers communications campaign to promote early career transition planning.

• Commenced support for automotive supply chain companies that have started to plan for site closures.

Targets 2016–17

• Liaise with all eligible Tier 1 and 2 automotive supply chain manufacturers and continue to facilitate access to potential alternative market opportunities.

• Assist automotive supply chain manufacturers impacted by the cessation of General Motors Holden Cruze production and the closure of Ford Motor Company’s manufacturing operations in Australia.

• Broker Commonwealth, state and local government support for workers impacted by the closure/downsizing of automotive manufacturing companies.

• Facilitate opportunities to directly connect displaced workers with new job opportunities.

• Support General Motors Holden with their Elizabeth divestment approach.

• Continue to monitor service delivery to ensure that automotive supply chain manufacturers are supported to diversify.

State Development



2016–17

Target

2015–16 Estimated

Result 2015–16

Target 2014–15

Actual

Value of grants committed under the Automotive Supplier Diversification Program — facilitated investment New indicator.

$6.6m $1.6m n.a. n.a.

Automotive Workers in Transition Program participant registrations (No.) New indicator.

1 500 1 000 n.a. n.a.

State Development


Program 3: Aboriginal Affairs and Reconciliation


Empower Aboriginal people to have a stronger voice in decision making across government and within communities, and provide leadership in the promotion of effective governance arrangements.

Provide whole of government policy advice and leadership, support engagement with Aboriginal stakeholders through the provision of culturally appropriate advice to government, facilitate the protection and preservation of Aboriginal heritage and culture, and support the state’s Aboriginal land holding authorities.


2016–17 Budget

2015–16 Estimated

Result 2015–16

Budget(a) 2014–15

Actual

$000 $000 $000 $000

Expenses Employee benefit expenses.......................................... 5 188 5 860 5 038 5 673 Supplies and services ................................................... 2 717 2 957 3 458 2 364 Depreciation and amortisation expenses ...................... 200 201 214 192 Grants and subsidies .................................................... 5 221 5 330 5 821 5 341 Intra-government transfers ........................................... 17 26 192 17 Other expenses ............................................................ 28 53 38 51

Total expenses 13 371 14 427 14 761 13 638

Income Intra-government transfers ........................................... 501 681 665 649 Other grants.................................................................. — — 380 180 Sales of goods and services ......................................... 3 15 4 6 Interest revenues .......................................................... — 20 — 23 Net gain or loss from disposal of assets ....................... — — — -3 Other income ................................................................ 3 6 — 302

Total income 507 722 1 049 1 157








• reduced expenditure for the Aboriginal Heritage Act review in 2016–17 ($0.6 million)

• movement in the allocation of overheads between financial years including, overhead FTEs, which are allocated across programs in line with total program expenditure ($0.3 million).

State Development






• commencement of the administration of the Stolen Generations Reparations Scheme in 2015–16 ($0.3 million)

• increased expenditure for the Aboriginal Heritage (Miscellaneous) Amendment Act 2016 review ($1.0 million)

partially offset by

• implementation of operational efficiencies across the program ($0.4 million).

The $0.4 million decrease in income is primarily due to recoveries in 2014–15 from:

• the Commonwealth Government for APY accommodation, vehicle and compliance costs ($0.2 million)

• the Department of Planning, Transport and Infrastructure for the APY Landfills program ($0.1 million).


• Designed and commenced the Next Steps — Stolen Generations Reparation Scheme including individual reparations to South Australian members of the Stolen Generations and a broader package of whole-of-community reparations.

• Assisted in enacting of the Aboriginal Heritage (Miscellaneous) Amendment Act 2016 which creates greater certainty for land use proponents and traditional owners.

• Publicly released the Aboriginal Regional Authority Policy and called for Expressions of Interest from Aboriginal organisations seeking to be recognised under the policy as the state’s first Aboriginal Regional Authorities.

• Delivered the government’s Aboriginal Nation (Re)Building curriculum to 20 Aboriginal leaders, representing eight groups from across the state.

• Developed a two-fold strategy to leverage opportunities for Aboriginal employment and business from government procurement and to build the capability of the Aboriginal business sector.

• Launched the online registration site for South Australian Aboriginal businesses to finalise the development of the South Australian Aboriginal business register, Aboriginal Business Connect.

Targets 2016–17

• Recognition of Aboriginal Regional Authorities through the implementation of the Aboriginal Regional Authority Policy.

• Introduce amendments to the Anangu Pitjantjatjara Yankunytjatjara Land Rights Act 1981 and support the Electoral Commissioner to hold the first election in 2016–17 under the new Act for the APY Executive.

• Register 60 South Australian Aboriginal businesses on South Australia’s online register of Aboriginal businesses, Aboriginal Business Connect.

State Development


Activity indicators

2016–17

Target

2015–16 Estimated

Result 2015–16

Target 2014–15

Actual

No. of regional authorities recognised under the Aboriginal Regional Authority Policy

1 3 1 n.a.

Secondment of senior public servants to Jawun partner organisations for between four to six weeks This program is being managed by the Office for the Public Sector.

n.a. 2 2 n.a.

No. of Aboriginal Nation (Re)building programs delivered 2 1 2 1 Registration of South Australian Business on South Australia’s online register of Aboriginal business, Aboriginal Business Connect. New indicator.

60 n.a. n.a. n.a.

State Development


Program 4: Science, Technology and Information Economy


Provide the government with a strategic and coordinated focus in science, technology and information economy policy development and program delivery to support state productivity, and maximise economic benefit to the state by:

• identifying strategic priorities for state government investment in science and research, and facilitating and coordinating strategic bids for Commonwealth Government funding

• raising awareness within government, business and the community of the critical importance of science, research and innovation to the state’s prosperity

• providing funding to research organisations and industry, to build our research strengths through people, partnerships and strategic infrastructure

• facilitating linkages between research providers and commercial end-users (industry) to maximise the benefits of research for the South Australian economy

• facilitating new approaches to improving research commercialisation, and providing support to attract more venture capital to South Australia

• supporting policy reforms and program initiatives to increase Science, Technology, Engineering and Maths (STEM) and entrepreneurship skills to drive innovation

• developing the South Australian bioscience industry by providing assistance in business development, finance, infrastructure and marketing

• developing strategy and facilitating programs and projects for promoting the information economy, building partnerships with global ICT companies to foster innovation in the state, implementing initiatives that support entrepreneurs to create start-up technology companies to commercialise ICT products and services.


2016–17 Budget

2015–16 Estimated

Result 2015–16

Budget(a) 2014–15

Actual

$000 $000 $000 $000

Expenses Employee benefit expenses.......................................... 3 324 3 078 3 014 3 719 Supplies and services ................................................... 3 253 2 396 2 673 1 688 Depreciation and amortisation expenses ...................... 99 82 73 68 Grants and subsidies .................................................... 12 201 9 399 5 625 6 707 Intra-government transfers expenses ........................... 6 012 5 945 5 913 6 178 Other expenses ............................................................ 51 78 44 45

Total expenses 24 940 20 978 17 342 18 405

Income Intra-government transfers ........................................... — 125 125 135 Sales of goods and services ......................................... — 5 1 2 Net gain or loss from disposal of assets ....................... — — — -1 Other income ................................................................ 80 102 80 207

Total income 80 232 206 343



State Development







• establishment in 2016–17 of the South Australian Early Commercialisation Fund ($2.5 million)

• commencement in 2016–17 of the Gig City program ($2.2 million)

• commencement in 2016–17 of support for the University of South Australia’s Future Industries Institute ($1.5 million)

• provision of a co-contribution in 2016–17 to secure increased Commonwealth Government investment in addressing mobile blackspots in South Australia ($1.0 million)


partially offset by

• once-off additional support in 2015–16 for co-operative research centres (CRCs) headquartered in South Australia ($2.0 million)

• re-profiling of expenditure for the Premier's Research and Industry Fund ($1.3 million).



• once-off additional support in 2015–16 for CRCs headquartered in South Australia ($2.0 million)

• re-profiling of expenditure for the Premier's Research and Industry Fund ($1.3 million)




• once-off additional support in 2015–16 for CRCs headquartered in South Australia ($2.0 million)

• re-profiling of expenditure for the Premier's Research and Industry Fund ($1.3 million).


• Invested in six new projects over two years through the Premier’s Research and Industry Fund, which included projects and initiatives to support the Investing in Science Action Plan.

• Reviewed the Premier’s Research and Industry Fund and recommended implementation of a Research Consortium Program to more effectively build capacity of the state’s existing centres of research excellence, and support research commercialisation and innovative research addressing local and global challenges.

• Commenced Smart City-Smart Parking, Smart Public Lighting, and environmental monitoring pilot projects, and opened the Adelaide Smart City Studio (Internet of Things Innovation Hub).

State Development


• Conducted a comprehensive review into the South Australian innovation ecosystem, and made recommendations to guide future Government of South Australia investment to optimise the growth of innovation in South Australia.

• Delivered the Defence and STEM internship program and developed a number of STEM policy strategic reform priorities to address systemic issues with STEM education and career pathways.

Targets 2016–17

• Establish the South Australian Early Commercialisation Fund and South Australian Venture Capital Fund — collectively the South Australian Commercialisation Fund.

• Implement the Research Consortium Program, and manage existing commitments of the Premier’s Research and Industry Fund.

• Provide investment in the University of South Australia’s Future Industries Institute, to provide industry with greater access to research and development funding, and opportunities to access research infrastructure and expertise.

• Work with the school education, higher education, vocational education and training, and STEM-skills based industry sectors to implement strategic reform priority initiatives that will encourage South Australians to pursue high-value employment opportunities.

• Develop an over-arching Smart City Strategy for Adelaide in partnership with the Adelaide City Council and Cisco and continue to invest in Smart City projects and initiatives, including the deployment of high speed broadband infrastructure to our innovation precincts (Gig City program).

• Promote deal flow through BioSA, for the commercialisation of university, public and privately funded research through the development of a coordinated approach for interacting with university technology transfer offices, industry and investors.


2016–17

Target

2015–16 Estimated

Result 2015–16

Target 2014–15

Actual

University — Industry Engagement • Cumulative industry funding to publicly funded research

sector Seeking annual increase, from baseline $270 million in 2012 to $570 million by 2017. There is a two year lag for relevant data from the Commonwealth Department of Education and Training, and Australian Bureau of Statistics. Data is by calendar year.

$547m $487m $450m $369m

STEM students • No. of STEM students commencing undergraduate and

postgraduate studies each year The target in economic priority 4 is increase the number of STEM students commencing undergraduate and postgraduate studies each year from 11 200 in 2013 (baseline) to 13 100 by 2017. Data is by calendar year and is reported by the Commonwealth Department of Education and Training in August of the following year.

12 150

11 012

12 150 11 200

Adelaide Smart City • Smart City Pilot projects completed

Adelaide City Council, Cisco and the Department of State Development are partnering to deliver Internet of Things pilot projects to enhance Adelaide’s position as a Smart City.

3 3 3 n.a.

Bioscience Industry Development • No. of new companies created 5 7 4 3 • No. of projects assisted

The indicator represents projects undertaken by research organisations and companies.

80 80 50 50

• Value of grants provided to companies $2.0m $1.7m $2.0m $2.0m

• No. of short courses and networking functions held 12 14 12 15

State Development


2016–17

Target

2015–16 Estimated

Result 2015–16

Target 2014–15

Actual

• No. of Australian provisional patent applications filed by South Australian universities

25 27 30 46

Activity indicators

2016–17

Projection

2015–16 Estimated

Result 2015–16


Actual

Increase South Australian science and research capabilities and capacity through strategic investments by the Premier’s Research and Industry Fund

• Funding of research areas of strategic economic priority $5.7m $6.6m $5.9m $6.5m Support South Australian STEM student engagement with local defence and STEM focused companies

• No. of STEM scholarships program 10 9 8 n.a. • No. of STEM Internships program 9 9 8 n.a. Support commercialisation activity in South Australia • No. of companies assisted under the South Australian

Early Commercialisation Fund 5 n.a. n.a. n.a.

• No. of Venture Catalyst projects A third round of the Micro Finance Fund will not be run in 2016–17 as it will be replaced with the South Australian Commercialisation Fund.

4 4 5 4

State Development


Program 5: Arts South Australia


Ensure the state recognises and capitalises on economic opportunities arising from the diverse arts and cultural organisations, practitioners, events and physical assets in the state by developing programs that build on cultural heritage and creativity, and providing financial support to the creative industries.

Sub-programs

5.1 State Library and Statewide Information Services

5.2 Support to Public Libraries and Community Information Services

5.3 Access to Art, Museum and Heritage Services and Preservation of State Collections

5.4 Arts Industry Development and Access to Artistic Product


2016–17 Budget

2015–16 Estimated

Result 2015–16

Budget(a) 2014–15

Actual

$000 $000 $000 $000

Expenses Employee benefit expenses.......................................... 13 199 12 987 11 586 13 355 Supplies and services ................................................... 9 583 8 930 11 636 8 780 Depreciation and amortisation expenses ...................... 7 774 7 007 7 075 7 111 Grants and subsidies .................................................... 24 787 20 976 19 833 21 649 Intra-government transfers ........................................... 106 390 108 994 111 869 108 251 Other expenses ............................................................ 805 735 537 867

Total expenses 162 538 159 629 162 536 160 013

Income Commonwealth Government revenues ........................ — — — 250 Intra-government transfers ........................................... 1 250 1 639 1 450 4 483 Sales of goods and services ......................................... 7 104 7 105 6 921 6 686 Net gain or loss from disposal of assets ....................... 191 -491 — -52 Other income ................................................................ 410 2 426 2 331 1 796

Total income 8 955 10 679 10 702 13 163





State Development


Sub-program 5.1: State Library and Statewide Information Services


Provide library and information services to the public, industry and government agencies.

2016–17 Budget

2015–16 Estimated


2014–15 Actual

$000 $000 $000 $000 Expenses ...................................................................... 17 714 17 576 17 020 18 351 Income .......................................................................... — — — 42






The $0.6 million increase in expenses is primarily due to the carryover of expenditure from 2014–15 to 2015–16 for the democracy exhibition ($0.4 million).


The $0.7 million decrease in expenses is primarily due to external painting and essential heritage restoration works undertaken for the State Library’s Institute Building in 2014–15.


• Completed development of the new State Library website.

• Expanded the State Library’s online collection and continued to preserve the State Library’s digital collections.

• Delivered South Australia’s Centenary of Anzac projects, including completion of the South Australian Red Cross Information Bureau web resource.

Targets 2016–17

• Develop and implement a three year program of exhibition, education and outreach activities.

• Commence renewal of the State Library’s collection management systems including catalogues and archival management systems to ensure ongoing preservation and access.

• Launch the new State Library website to support learning and research, as well as to provide easier access to the library’s digitised collections, other online content and services.

State Development



2016–17

Target

2015–16 Estimated

Result 2015–16

Target 2014–15

Actual

Percentage of library reference enquiries resolved within agreed customer timeframe

92% 92% 92% 92%

Activity indicators

2016–17

Projection

2015–16 Estimated

Result 2015–16


Actual

No. of State Library visitors 650 000 635 000 650 000 632 498 No. of State Library website visitors 1 200 000 1 215 000 950 000 1 128 000 Amount of external revenue received $1.2m $1.7m $1.2m $1.7m External revenue received as a percentage of total revenue 8% 11% 8% 10%

Sub-program 5.2: Support to Public Libraries and Community Information Services


Provide support and information services to the community and public libraries.

2016–17 Budget

2015–16 Estimated


2014–15 Actual

$000 $000 $000 $000 Expenses ...................................................................... 20 553 20 176 20 089 20 041 Income .......................................................................... — — — 17


FTEs as at 30 June (No.) 2 2 2 2









• Continued the installation of radio frequency identification tags in items across the network to increase capacity for self-service borrowing.

• Commenced the implementation of 13 of the 37 projects set out in the Public Library Network’s five-year strategic plan Tomorrow’s Libraries.

State Development


• Hosted two interns from the Shandong Provincial Library for 10 weeks.

• Completed the School Community Libraries pilot project, which has strengthened local partnerships with schools, clarified community expectations, and identified opportunities to improve library services.

Targets 2016–17

• Complete the statewide radio frequency identification project.

• Continue to implement the Public Library Network’s Tomorrow’s Libraries strategic plan.

• Review the provision of public library internet services and the Public Internet Service Framework to increase internet speed and enhance user experience.

• Continue to work with regional councils to undertake community led planning on the future role of School Community Libraries now that the One Card project has provided new possibilities for library service delivery.

Activity indicators

2016–17

Projection

2015–16 Estimated

Result 2015–16


Actual

No. of items purchased and catalogued 268 000 268 000 286 000 268 000

Sub-program 5.3: Access to Art, Museum and Heritage Services and Preservation of State Collections


Provision of museum, visual arts and preservation services that enable the state’s cultural, heritage and arts assets to be maintained and kept accessible to the community.

2016–17 Budget

2015–16 Estimated


2014–15 Actual

$000 $000 $000 $000 Expenses ...................................................................... 37 139 37 816 37 246 37 890 Income .......................................................................... 872 3 208 3 124 2 284





• additional expenditure in 2015–16 on the Art Gallery of South Australia’s TARNANTHI — Contemporary Aboriginal and Torres Strait Islander Arts Festival ($2.2 million)

partially offset by

• additional expenditure in 2016–17 for a new international exhibition ($1.1 million)

State Development


• additional expenditure in 2016–17 to further progress the business case for Adelaide Contemporary ($0.5 million).

The $2.3 million decrease in income is primarily due to cessation in 2015–16 of funding to the Art Gallery of South Australia from BHP Billiton for the TARNANTHI — Contemporary Aboriginal and Torres Strait Islander Arts Festival ($2.2 million).




The $0.9 million increase in income is primarily due to an increase in funding to the Art Gallery of South Australia from BHP Billiton for the TARNANTHI — Contemporary Aboriginal and Torres Strait Islander Arts Festival ($0.8 million).


• Presented TARNANTHI — Contemporary Aboriginal and Torres Strait Islander Art Festival to over 310 000 visitors.

• Presented the 2016 Adelaide Biennial of Australian Art at the Art Gallery of South Australia to the largest ever biennial audience.

• Developed and presented the Opals exhibition at the South Australian Museum, which was financially successful and succeeded in attracting strong revenue, audiences and new donors to the museum.

• Expanded online content in the Adelaidia app and across a range of History SA websites including the launch of the Passengers in History website.

• Completed the heritage restoration works on the east wing of the South Australian Museum.

Targets 2016–17

• Progress the business case for the Adelaide Contemporary proposal.

• Grow the Art Gallery of South Australia’s children’s attendances to in excess of 50 000 per annum and continue to develop the Neo program for young people aged 13–17.

• Develop and present an exhibition by the South Australian Maritime Museum of artwork from Nicholas Baudin’s voyages, bringing collections from France for a national tour of six Australian museums.

• Facilitate and present the Didjeridu exhibition program and the British Museum’s Curious Beasts: From Durer to Goya at the South Australian Museum.

• Continue the heritage restoration works along the North Terrace cultural precinct including the commencement of stonework restorations on the Mortlock building.

• Facilitate a program of activities at Carrick Hill to celebrate the 30th anniversary of the public opening of the house including an exhibition and documentary on the life and work of Stanley Spencer.

State Development



2016–17

Target

2015–16 Estimated

Result 2015–16

Target 2014–15

Actual

Amount of external revenue received (and per cent of total revenue):

• Art Gallery of South Australia $5.9m (25%)

$6.9m (30%)

$4.7m (24%)

$7.8m (30%)

• SA Museum $5.0m (28%)

$5.0m (28%)

$3.5m (25%)

$4.8m (27%)

• Carrick Hill $0.5m (53%)

$0.5m (53%)

$0.5m (53%)

$0.5m (52%)

• History SA

$1.5m (22%)

$2.1m (28%)

$1.2m (19%)

$2.4m (30%)

• Artlab $0.8m (53%)

$0.8m (53%)

$0.8m (27%)

$0.7m (52%)

No. of scientific peer review publications (SA Museum) 130 130 200 128

Activity indicators

2016–17

Projection

2015–16 Estimated

Result 2015–16


Actual

No. of items treated by Artlab: • cost under $1000 950 950 950 1 100 • cost $1001−$2000 200 130 200 115 • cost $2001−$6000 200 150 220 145 • cost above $6001 80 65 80 85 No. of visitors to the: • Art Gallery of South Australia 780 000 770 000 730 000 756 846 • SA Museum 720 000 720 000 720 000 733 926 • Carrick Hill 68 000 70 000 59 000 69 822 • History SA 500 000 500 000 300 000 308 671

Sub-program 5.4: Arts Industry Development and Access to Artistic Product


Provide services that increase opportunities for artists, cultural tourism, festivals and events and provide for productions, exhibitions, tours and events to the community.

2016–17 Budget

2015–16 Estimated


2014–15 Actual

$000 $000 $000 $000 Expenses ...................................................................... 87 132 84 061 88 181 83 731 Income .......................................................................... 8 083 7 471 7 578 10 820


State Development





• additional funding in 2016–17 to maintain arts activities and sustain jobs growth and economic benefits for the state ($3.0 million)

• provision of a grant to the City of Mount Gambier in 2016–17 to enable the purchase of the Riddoch Art Gallery collection from Country Arts SA ($2.1 million)

• an increase in expenditure in 2016–17 in line with the forward plan for the Adelaide Festival Centre Precinct and technical equipment ($1.0 million)

• provision of funding to the Heysen Heritage Appeal to secure The Cedars for public access ($1.0 million)

• commencement in 2016–17 of additional support to the Adelaide Festival Centre Trust for the OzAsia Festival ($0.8 million)

• additional support for the 2017 Adelaide Festival of Arts ($0.7 million)

• commencement of support for Adelaide as a United Nations Educational, Scientific and Cultural Organisation (UNESCO) City of Music through the establishment of a Live Music Fund ($0.3 million)

partially offset by

• the upgrade of infrastructure in 2015–16 at regional arts theatres by Country Arts SA ($4.3 million)

• additional support in 2015–16 to the South Australian Film Corporation for the Screen Production Investment Fund ($1.0 million).

The $0.6 million increase in income is primarily due to the accounting treatment of contributed assets associated with the Queen’s Theatre heritage restoration.



• the transfer of lease arrangements for Netley Commercial Park to the Department of Planning, Transport and Infrastructure ($3.5 million)

• re-profiling of the Adelaide Festival Centre Precinct technical equipment and car park reimbursement to 2016–17 and 2017–18 ($2.2 million)

partially offset by

• additional support to the South Australian Film Corporation for the Screen Production Investment Fund ($1.0 million)

• reclassification in 2015–16 from investing to operating of Adelaide Festival Centre Precinct immediate integration works ($0.6 million).



• the accounting treatment of Artlab funding arrangements in 2014–15 ($2.1 million)

• once-off funding in 2014–15 for the Shandong Cultural Project ($0.3 million)

• once-off funding in 2014–15 for new artistic and cultural endeavours ($0.3 million)

State Development


• finalisation in 2014–15 of funding relating to the Cultural Places — Goolwa pilot under the Australia Council's Community Partnerships arts funding program ($0.3 million)

• once-off funding in 2014–15 for the democracy exhibition ($0.2 million).


• Continued development of the St Paul’s Creative Centre as a co-working space with 19 creative businesses and entrepreneurs now based at the facility, while the Music Development Office has achieved national and international recognition for its programs and business model.

• Collaborated with the Adelaide Festival Centre Trust and the Adelaide City Council in the successful bid for Adelaide to be designated an international United Nations Educational, Scientific and Cultural Organisation City of Music in December 2015.

• Supported Adelaide’s festivals to deliver city vibrancy, attract record attendances and provide unprecedented opportunities for artists in 2015–16, as well as employment across all aspects of production, artistic delivery and associated roles.

• Achieved critical acclaim for Windmill Theatre Company’s film, Girl Asleep, released during the Adelaide Film Festival in October 2015 and subsequently distributed in Europe, America and across Australia.

• Undertook remediation works at the Adelaide Festival Centre, progressed design and documentation for the Adelaide Festival Centre Precinct project and commenced procurement of technical equipment for the theatres.

Targets 2016–17

• Implement the first year of the UNESCO City of Music Events Fund to support live music events and new festivals that have the potential to grow into major tourist attractions.

• Commence construction of the Adelaide Festival Centre Precinct Project and continue procurements for the supply of new sound and lighting equipment.

• Invest in Adelaide Festival Centre’s OzAsia Festival to enable it to reach its full potential as a world-class artistic event, become a city-wide Spring Activation program focused on Asian culture and support the government’s agenda of internationalising the state’s economy.

• Provide additional support to the Adelaide Festival of Arts to attract and present a major international event in 2017.

• Undertake detailed design and documentation for the redevelopment of Her Majesty’s Theatre.

• Lead the delivery of the Made in Adelaide initiative in Edinburgh, Scotland, in partnership with others, during the Edinburgh Festival and Fringe to promote and showcase our state’s artistic product.


2016–17

Target

2015–16 Estimated

Result 2015–16

Target 2014–15

Actual

Level of customer satisfaction: attendees at the Adelaide Festival Centre

>80% 82% 80% 86%

Theatre utilisation achieved by the Adelaide Festival Centre >70% 73% 75% 70% Amount of external revenue received (and percentage of total revenue):

• Country Arts SA $4.6m (47%)

$4.5m (33%)

$4.8m (49%)

$4.6m (47%)

• State Opera $3.6m (70%)

$3.4m (69%)

$3.1m (67%)

$3.1m (67%)

State Development


2016–17

Target

2015–16 Estimated

Result 2015–16

Target 2014–15

Actual

• State Theatre $4.1m (62%)

$4.5m (64%)

$3.9m (61%)

$4.5m (65%)

• Adelaide Festival Centre $22.5m (65%)

$25.4m (68%)

$25.9m (73%)

$26.0m (68%)

Maintain artistic standards: • State Opera

– assessment by external independent panel each session

Positive Positive Positive Positive

– survey audience for response (per cent positive) 80% 80% 75% 80% • State Theatre

– external review/peer panel review (per cent positive) 80% 80% 80% 94% – survey audience for response (per cent positive) 80% 80% 80% 93%

Activity indicators

2016–17

Projection

2015–16 Estimated

Result 2015–16


Actual

No. of Independent Makers and Presenters grant applications

250 226 260 242

No. of Independent Makers and Presenters grant applications approved

100 103 100 94

Average size of an Independent Makers and Presenters grant

$10 000 $9 705 $12 000 $12 020

Total no. of attendances achieved by: • Country Arts SA

– paid seats at performances and exhibition/gallery attendances The 2015–16 Estimated Results for paid attendances is down from the 2015–16 Projection due to less than expected activity in the Arts Centres including the need to schedule in construction works.

99 000 96 000 125 000 104 000

– unpaid attendances The 2015–16 Estimated Results for unpaid attendances is up from the 2015–16 Projection reflecting increased attendances at the biennial Whyalla Art prize exhibition.

28 000 74 000 41 000 106 000

• State Opera – paid seats at performances

The 2016–17 Projection for paid attendances is down from the 2015–16 Estimated Result due to the availability of the Festival Theatre.

12 500 14 342 14 500 12 482

– unpaid attendances 2 000 1 741 2 500 1 969 • State Theatre

– paid seats at performances Variations between the 2015–16 Estimated Result and the 2016–17 Projection for paid attendances is largely due to program differences between the 2015 and 2016 seasons.

45 000 40 320 44 427 43 989

– unpaid attendances 4 900 6 316 4 800 6 851 • Adelaide Festival Centre

The 2015–16 Estimated Result for attendances is higher than the 2015–16 Projection due to greater than expected audiences at the 2015 OzAsia Festival, as well as delays in the commencement of the Adelaide Festival Centre Precinct Project. The 2016–17 Projection reflects expected increases in attendances from an expanded OzAsia Festival program, the biennial Guitar Festival and an enhanced musicals program, net of any impact on attendances from the delayed start to the Precinct project.

890 000 863 000 750 000 828 475

State Development


Program 6: Health Industries


Increase investment and employment in South Australia’s health and biomedical sector to achieve the government’s vision for the state to become a globally recognised leader in health research, ageing and related services and products.


2016–17 Budget

2015–16 Estimated

Result 2015–16

Budget(a) 2014–15

Actual

$000 $000 $000 $000

Expenses Employee benefit expenses.......................................... 1 387 1 365 913 944 Supplies and services ................................................... 1 163 1 198 1 669 703 Depreciation and amortisation expenses ...................... 11 11 11 7 Borrowing costs ............................................................ — — — 1 Grants and subsidies .................................................... 20 15 — 10 Intra-government transfer expenses ............................. 3 5 7 2 Other expenses ............................................................ 11 10 7 4

Total expenses 2 595 2 604 2 607 1 671

Income Other income ................................................................ — — — 16












The $0.9 million increase in expenses is primarily due to recruitment and program delays during 2014–15 following the establishment of the Health Industries unit in March 2014 ($0.8 million).


• Attracted three further life sciences companies to establish or expand operations in South Australia.

• Attracted Micro-X to manufacture lightweight X-ray machines at Tonsley.

State Development


• Attracted Hydrix to establish in Adelaide to offer a range of software and electronic product design services ranging from applied research and initial concept definition and specification, through all stages of engineering, development and certification for global markets.

• Provided assistance to Pfizer to expand their facility in Thebarton.

• Raised awareness of the value propositions that South Australia has to offer investors by attending significant international life sciences conferences, leading overseas delegations to Shandong and Europe and the UAE, appointing Health Industries SA representatives in key overseas markets and expanding marketing activities.

• Built and aligned a network of local industry, academic and government partners to help develop Adelaide BioMed City as the cornerstone of South Australia’s health economy.

Targets 2016–17

• Improve local business development activities, converting leads and expressions of interest into investment by improving the quality of communication to the market to create high-value jobs and diversify the South Australian economy.

• Increase the number of major South Australian companies exporting health and biomedical goods and services (including medical devices).

• Continue strengthening the key value propositions for the South Australia life sciences sector: digital health, medical devices and tele-health, clinical research and procurement reform.


2016–17

Target

2015–16 Estimated

Result 2015–16

Target 2014–15(a)

Actual

Attract new major health and biomedical companies to establish facilities in South Australia

2 3 2 n.a.

Secure significant health/biomedical conferences to South Australia

3 3 3 n.a.

(a) New targets were determined for this program during 2014–15 as part of the Health Industries of South Australia’s establishment process.

Activity indicators

2016–17

Projection

2015–16 Estimated

Result 2015–16


Actual

Promote South Australia in target markets by participating in delegations and business trips New indicator.

2 n.a. n.a. n.a.

Develop relationships with health and biomedical clusters and industry organisations outside of Australia by signing MOUs to create international opportunities for local life sciences companies New indicator.

2 n.a. n.a. n.a.

Secure significant health and biomedical conferences for South Australia New indicator.

3 n.a. n.a. n.a.

State Development


Program 7: Mineral Resources and Energy


Unlock the full potential of South Australia’s resources, energy and renewable assets and maintain the state’s reputation as a leading resource investment destination.

Sub-programs

7.1 Mineral Resources

7.2 Energy Resources

7.3 Olympic Dam Taskforce

7.4 Energy Policy and Programs

7.5 Electricity and Gas Technical and Safety Regulation


2016–17 Budget

2015–16 Estimated

Result 2015–16

Budget(a) 2014–15

Actual

$000 $000 $000 $000

Expenses Employee benefit expenses.......................................... 34 765 36 501 33 082 37 818 Supplies and services ................................................... 29 073 28 081 28 592 30 877 Depreciation and amortisation expenses ...................... 3 110 2 821 2 077 2 857 Grants and subsidies .................................................... 24 211 29 134 15 964 14 790 Intra-government transfers ........................................... 825 869 822 747 Other expenses ............................................................ 246 468 259 231

Total expenses 92 230 97 874 80 796 87 320

Income Commonwealth Government revenues ........................ 235 615 226 475 Intra-government transfers ........................................... 7 125 6 839 6 816 6 767 Fees, fines and penalties .............................................. 22 226 22 398 22 694 21 497 Sales of goods and services ......................................... 5 513 5 928 5 523 4 388 Net gain or loss from disposal of assets ....................... — — — -228 Other income ................................................................ 2 809 3 260 2 491 2 920

Total income 37 908 39 040 37 750 35 819





State Development


Sub-program 7.1: Mineral Resources


Maximise the community’s net benefit from the state’s ownership of the rights to mineral resources.

Manage the state’s mineral resources by regulating operations and developing sustainable practices for exploration and development.

Provide comprehensive, high quality geoscientific data and advice, and develop an effective and efficient policy, regulatory and legislative framework.

Collect royalties with trustworthy compliance frameworks.

2016–17 Budget

2015–16 Estimated


2014–15 Actual

$000 $000 $000 $000 Expenses ...................................................................... 35 909 44 476 29 092 37 419 Income .......................................................................... 12 511 12 687 12 463 11 811





• a reduction in expenditure in 2016–17 on the PACE Copper program ($6.0 million)

• a reduction in expenditure in 2016–17 in line with the forward plan for the PACE program ($1.0 million)


• divestment in 2015–16 of a government owned building and land at Whyalla to FoodBank SA as part of the consolidation of the State Drill Core Library at Tonsley ($0.3 million)

• once-off Commonwealth funded expenditure in 2015–16 for the AusLAMP Maralinga-Tjarutja Lands Project ($0.3 million)

partially offset by

• additional support for the SA Chamber of Mines and Energy ($0.2 million).



• commencement in 2015–16 of the PACE Copper program in ($13.0 million)


• divestment of a government owned building and land at Whyalla to FoodBank SA as part of the consolidation of the State Drill Core Library at Tonsley ($0.3 million)

• once-off Commonwealth funded expenditure for the AusLAMP Maralinga-Tjarutja Lands Project ($0.3 million).

State Development




• commencement in 2015–16 of the PACE Copper program in ($13.0 million)


partially offset by

• completion in 2014–15 of the PACE Frontiers Gawler Craton project ($1.9 million)


• a reduction in operating expenditure in 2015–16 in line with the forward plan for Brukunga Mine site remediation ($0.8 million)

• a reduction in expenditure in 2015–16 in line with the forward plan for the Mining and Petroleum Services Centre of Excellence ($0.7 million)

• targeted voluntary separation packages provided in 2014–15 ($0.7 million)

• completion in 2014–15 of the Eyre Peninsula Land Use Support initiative ($0.3 million).


• indexation of regulated fees and charges ($0.3 million)

• once-off Commonwealth funding in 2015–16 for the AusLAMP Maralinga-Tjarutja Lands Project ($0.3 million).


• Finalised construction and commenced transition to operations in the new South Australia Drill Core Reference Library.

• Completed the PACE Frontiers 2014–15 Mineral Systems Drilling program in the Gawler Craton, a collaboration between government, the Deep Exploration Technologies Collaborative Research Centre and Industry, and trialled new technologies to produce geoscience drilling data and analysis in near-real-time.

• Delivered the state’s largest and most detailed geophysical survey covering the under explored south west Coompana region of the state, providing new insights into the mineral exploration potential as a precursor to the release of new exploration areas.

• Published 13 new mining guidelines and determinations to further enhance the state’s internationally recognised one window to government approach to streamlined assessment and approvals processes under the Mining Act 1971.

• Completed extensive consultation on the draft South Australian Multiple Land Use Framework in support of growing the resources industry in collaboration with regional communities and providing greater certainty to farmers, landowners, industry, agencies, communities and regulators, to increase the transparency and consistency in decision-making.

• Enhanced and increased royalty audit activities to improve accuracy of industry royalty returns.

Targets 2016–17

• Commission all operations at the South Australia Drill Core Reference Library at Tonsley to facilitate resource discovery, collaboration and partnerships between industry, research partners and government.

State Development


• Complete and release the data and information collected by the Gawler Craton Magnetic, Radiometric and Digital Elevation Model Airborne Geophysical Survey, the key component of the PACE Copper Program.

• Release to market new mineral Exploration Licences through the merit-based Exploration Release Area process as part of the PACE Coompana Project.

• Continue to implement improvements in the online delivery of geoscience information to maintain our international ranking as a preferred investment destination.

• Improve incrementally, South Australia’s leading practice regulatory framework for mineral resources through:

– review of the framework to further streamline efficient and effective delivery

– publication of the annual Mineral Resources Regulatory Report outlining all aspects of mineral exploration, mining, quarrying and opal field activities

– joint department and industry workshops to support improved regulatory outcomes and community engagement.

• Continue to improve the efficient and effective administration, collection and audit of mineral royalty returns.


2016–17

Target

2015–16 Estimated

Result 2015–16

Target 2014–15

Actual

South Australia’s ranking in the Policy Perception Index within the internationally recognised Fraser Institute annual survey

Top quartile Top quartile Top quartile Top quartile

Mining Compliance and Regulation Program Site inspections, statutory compliance reporting by miners, investigation of incidents, complaints and the issue of formal instructions support legislative compliance, including the achievement of approved environmental outcomes.

Number of non-compliances, identified as formal instructions issued as a per cent of active mining operations New indicator.

≤20% n.a. n.a. n.a.

Reported non compliances actioned, identified as a per cent of total non-compliances New indicator.

≥95% n.a. n.a. n.a.

Number of site inspections, identified as a per cent of active operations New indicator.

≥70% n.a. n.a. n.a.

Activity indicators

2016–17

Projection

2015–16 Estimated

Result 2015–16


Actual

South Australia’s mineral exploration expenditure and value of mineral production

South Australian mineral exploration expenditure $70m $50m $200m $87m Value of mineral production $4.3b $4.6b $4.6b $4.6b

State Development


Sub-program 7.2: Energy Resources


Maximise the community’s net benefit from the state’s ownership of the rights to petroleum, geothermal and geologic gas storage resources. Deliver world-class regulation so that both investors and the public have confidence that all operations are undertaken pursuant to the Petroleum and Geothermal Energy Act 2000.

Provide comprehensive, high quality geoscientific data and advice, and develop an effective and efficient policy, regulatory and legislative framework. Develop sustainable practices for exploration and development.

Collect royalties with trustworthy compliance frameworks.

2016–17 Budget

2015–16 Estimated

Result(a) 2015–16 Budget

2014–15 Actual

$000 $000 $000 $000 Expenses ...................................................................... 15 786 9 976 14 434 10 817 Income .......................................................................... 10 748 11 378 11 142 10 517

Net cost of sub-program 5 038 -1 402 3 292 300 FTEs as at 30 June (No.) 62 60 62 59

(a) The negative net cost of services in 2015–16 reflects the reclassification of expenditure for systems associated with petroleum activities.




• expenditure in 2016–17 associated with the Innamincka Airstrip ($3.7 million)

• reclassification in 2015–16 of expenditure from operating to investing for systems associated with petroleum activities ($1.1 million)

• commencement in 2016–17 of reimbursement to the Department of Environment, Water and Natural Resources for the Natural Resource Management levy on co-produced water associated with the gas and petroleum industry ($0.8 million).


• lower estimated Petroleum Retention Licence compliance activity ($0.4 million)

• reduced Petroleum Retention Licence fee revenue due to implementation of a 5 per cent fee reduction ($0.2 million).


The $4.5 million decrease in expenses is due to:

• the carryover from 2015–16 to 2016–17 for the Innamincka airstrip ($3.7 million)


State Development




• the implementation of operational efficiencies across the program ($0.7 million)

• targeted voluntary separation packages provided in 2014–15 ($0.2 million).


• higher Petroleum Retention Licence compliance activity in 2015–16 ($0.3 million)

• indexation of regulated fees and charges in 2015–16 ($0.3 million).


• Sustained national and regional leadership in energy resources investment and regulatory frameworks, notwithstanding a 70 per cent decline in oil prices.

• Improved regulatory outcomes through:

– fit-for-purpose compliance probing

– priority to drive environmentally sustainable energy resource projects.

• Continued to implement Roadmap recommendations and to sustain Roundtable Working Groups’ focus on critical uncertainties that if not overcome, act as impediments for environmentally sustainable development.

• Improved ready access to data/information that informs the public, industry, government and its Ministers, and continued to agree facts to be shared between co-regulated agencies within the state and across Australia.

Targets 2016–17

• Develop strategic amendments to the Petroleum and Geothermal Energy Act 2000, to bolster productivity and trust in the state’s leading practice frameworks for petroleum, geothermal energy and gas storage.

• Continue to improve regulatory outcomes through:

– fit-for-purpose compliance probing

– priority regulatory research to drive environmentally sustainable energy resource projects.

• Continue to implement Roadmap recommendations and continue focus of Roundtable Working Groups on lifting productivity

• Release a discussion paper for amendments to the Petroleum and Geothermal Energy Act 2000 to bolster productivity and leading practice frameworks for petroleum, geothermal energy and gas storage.

• Continue to boost industry investment in the state’s prospective petroleum regions through the grant of fit-for-purpose petroleum retention and petroleum production licences.


2016–17

Target

2015–16 Estimated

Result 2015–16

Target 2014–15

Actual

South Australia’s ranking in the Policy Participation Index within the internationally recognised Fraser Institute annual survey

Top 20 globally and top 5

Oceania region

12th globally 1st in Oceania

region

Top 20 globally and top 5

Oceania region

18th globally 2nd in Oceania

region

State Development


2016–17

Target

2015–16 Estimated

Result 2015–16

Target 2014–15

Actual

Inspection Compliance Program The deployment of site inspections and the issue of improvement notices drives industry to fewer significant environmental incidents. Improvement notices cover even procedural departures from operation plans — to avoid more serious non-compliance. The target is to have a lower percentage of environmental issues arise while the frequency of site inspections undertaken is in alignment with changes in activity levels.

Environmental issues identified as a per cent of Inspections ≤25% 26% 30% 37% Inspection effort — number of regulated site visits 120 130 130 135

Activity indicators

2016–17

Projection

2015–16 Estimated

Result 2015–16


Actual

Extent of lands held under petroleum production (PPL) or retention licence (PRL) The extent of lands held under production or retention licence is a measure of progress towards discovery and commercialisation of the state’s petroleum resources. Policies introduced in 2013–14 to boost industry investment in PRLs have been very successful. The target is to have a greater area of lands held under PPLs and PRLS as this is intrinsically related to the rate of discovery and commercialisation. The take-up of PPLs and PRLs is always sensitive to product price, and with forecasts for oil prices to remain low — the 2016–17 target is realistic.

Total area under production + retention licence 23 558km2 22 975km2 22 975km2 20 521km2 Targeted % increase on prior year New indicator.

3% n.a. n.a. n.a.

Sub-program 7.3: Olympic Dam Taskforce


Deliver innovative and transformative solutions to complex resource and investment projects for the benefit of all South Australians.

Collaborate with stakeholders across government and industry to fund, design, and deliver specialised resource projects that are:

• significant in terms of size and complexity

• sensitive (politically, socially and environmentally)

• time bound, and for which there is little guidance within the public domain.

Act as a ‘one stop shop’ by facilitating projects through government’s policy, planning, technical, legal, financial and environmental requirements to enable approval and to deliver their transformational resource and investment benefit for South Australia.

2016–17 Budget

2015–16 Estimated


2014–15 Actual

$000 $000 $000 $000 Expenses ...................................................................... 6 679 9 478 7 127 3 118 Income .......................................................................... — 437 — 485


State Development





• a reduction in expenditure in 2016–17 in line with the forward plan for the OZ Minerals increased investment in South Australia and relocation of head office from Melbourne ($1.0 million)

• once-off expenditure in 2015–16 for the development of the South Australian Copper Strategy ($0.5 million)

• once-off assistance in 2015–16 to Hillgrove Resources Limited to assist the company to establish a supplementary supply of water to the Kanmantoo mine site ($0.9 million)

• once-off additional costs in 2015–16 for specialist advice on the Port Pirie Transformation (Nyrstar) project ($0.4 million)

partially offset by

• an increase in support for steelmaking and steel fabrication industries in 2016–17 ($0.2 million).

The $0.4 million decrease in income is due to once-off reimbursement of costs in 2015–16 for specialist advice on the Port Pirie Transformation (Nyrstar) project.



• once-off assistance to Hillgrove Resources Limited to assist the company to establish a supplementary supply of water to the Kanmantoo mine site ($0.9 million)

• commencement of additional support for steelmaking and steel fabrication industries ($0.6 million)

• once-off additional costs for specialist advice on the Port Pirie Transformation (Nyrstar) project ($0.4 million)

• the transfer of resources from Program 10 — International Engagement, Trade, Migration and International Education ($0.2 million).

The $0.4 million increase in income is due to once-off reimbursement of costs for specialist advice on the Port Pirie Transformation (Nyrstar) project.



• expenditure commencing in 2015–16 for OZ Minerals increased investment in South Australia and relocation of its head office from Melbourne ($4.0 million)

• once-off assistance in 2015–16 to Hillgrove Resources Limited to assist the company to establish a supplementary supply of water to the Kanmantoo mine site ($0.9 million)

• commencement in 2015–16 of additional support for steelmaking and steel fabrication industries ($0.6 million)

• once-off expenditure in 2015–16 for the development of the South Australian Copper Strategy ($0.5 million)


• Ensured seamless cross-government case management for BHP Billiton’s Olympic Dam operations and continued to facilitate the development path towards substantial expansion of mining, processing and export operations.

State Development


• Completed the financing arrangements for the $563 million Nyrstar Port Pirie Transformation project resulting in the issue of the state’s $291.2 million contingent support for the benefit of external financiers.

• Continued to participate in implementing the Targeted Lead Abatement Program for Port Pirie to address children’s blood lead levels.

• Established a Steel Task Force to support the South Australian steel industry from global over supply of steel which is leading to a combination of unfair competition from abroad and a rapid downturn in iron ore and steel prices.

• Released South Australia’s Copper Strategy, developed in collaboration with industry, research institutions and the community, which aims to triple copper production from South Australia over the next 15 years.

• Released, through the Resources Infrastructure Taskforce, the business case for solutions to bulk mineral export infrastructure on Spencer Gulf, developed in consultation with industry and research organisations identifying three priority port locations for bulk commodities in South Australia.

• Implemented the next stage of closure for the Dry Creek Salt Fields which included ongoing environmental controls and management, future land use design and expression of interest process resulting in a sale agreement and development of a migratory bird conservation plan.

Targets 2016–17

• Continue cross-government case management for BHP Billiton’s Olympic Dam operations and facilitate the development path towards substantial expansion.

• Continue to facilitate the Nyrstar Port Pirie Transformation project as it progresses to the operational phase.

• Continue monitoring of financial arrangements and implementation of the Targeted Lead Abatement Program for Port Pirie.

• Undertake, through the Resources Infrastructure Taskforce, priority projects in power, water, roads and rail to support infrastructure development for mining in key regions.

• Develop and implement a Magnetite Strategy, in collaboration with industry, research institutions and the community, to market South Australia as the foremost global source of quality magnetite product for steel making.

• Continue implementation of the South Australian Copper Strategy, including presentation of the Copper Success Series Seminars.

• Maintain the mine closure and future land use transition of the Dry Creek Salt Field, including progression of master planning of Section 1 (Dry Creek), continued planning and trials associated with site rehabilitation and investigations into third party uses for remaining northern land.

• Deliver policy initiatives and industry support through the Steel Task Force, to ensure the sustainable future of the South Australian steel industry.

Sub-program 7.4: Energy Policy and Programs


Provide policy advice and coordination of energy market reforms, including national reforms, sustainability, energy efficiency and renewable energy policy.

Manage energy programs for the delivery of services to remote areas in support of energy efficiency, renewable energy and the provision of safe and reliable electricity services across towns in off-grid remote areas of the state, including remote Aboriginal lands.

State Development


2016–17 Budget

2015–16 Estimated


2014–15 Actual

$000 $000 $000 $000 Expenses ...................................................................... 28 579 28 318 24 157 30 176 Income .......................................................................... 9 467 9 479 9 241 8 135




The $0.3 million increase in expenses is primarily due to the commencement in 2016–17 of a detailed assessment of increased electricity interconnection to support renewable energy growth ($0.5 million).


The $4.2 million increase in expenditure is due to:

• additional funding for the Remote Areas Energy Supplies (RAES) program ($3.1 million)





• once-off depreciation costs in 2014–15 associated with the revaluation of assets ($0.6 million)


The $1.3 million increase in income is primarily in relation to the RAES program ($1.2 million).


• Developed and trialled, on behalf of all Australian jurisdictions:

– a large scale system design classification to enable best practice energy efficient street lighting design

– an electronic building passport system and on-ground compliance auditing protocol, to improve compliance with the energy efficiency requirements of the National Construction Code.

• Finalised long-term contracts for the Remote Area Energy Supply scheme for the delivery of electricity and associated services in remote off-grid towns.

• Completed and released the comprehensive guide to electricity, gas and SA Water services, which was distributed to approximately 1200 community workers across South Australia to help them assist vulnerable and disadvantaged households.

• Managed the issues and challenges arising from the closure of the Leigh Creek mine and Port Augusta power stations, through the Upper Spencer Gulf and Outback Taskforce.

• Conducted the Low Carbon Electricity Supply and Services Expression of Interest to identify ideas that will service government sites.

State Development


• Engaged in the revenue determination process for SA Power Networks and Australian Gas Networks to ensure the determination made by the Australian Energy Regulator is in the long term interest of South Australian consumers.

Targets 2016–17

• Complete the investigation and analysis of a business case for a high penetration solar/diesel hybrid generation for the town of Marree in conjunction with the Australian Renewable Energy Agency (ARENA).

• Establish a framework for identification and implementation of energy conservation measures in government-owned buildings and deliver a battery storage demonstration project in three government-owned buildings in the Adelaide City Council area.

• Commence planning of targets for the next stage of the Retailer Energy Efficiency Scheme from 2018–2020.

• Plan for the mitigation of reliability, security and risk management challenges which may emerge in the transition of South Australia’s electricity supply to a low carbon future.

• Respond to the Australian Competition and Consumer Commission enquiry into, and Australian Energy Market Commission review of, gas markets in eastern Australia.


2016–17

Target

2015–16 Estimated

Result 2015–16

Target 2014–15

Actual

% of renewable energy generated Targets are based on forecasts released by the Australian Energy Market Operator. A number of factors can influence the results including weather and demand during the period.

55.1% 52.1% 51.6% 42.2%

% of energy efficiency of government buildings The 2015–16 Estimated Result and the 2016–17 Target are based on a linear progression between the actual 2014–15 result and the 2020 target for South Australia’s Strategic Plan target T61 (30 per cent improvement by 2020).

25.3% 23.7% 25.9% 21.2%

South Australia’s residential energy efficiency index The energy efficiency index describes the number of residential dwellings that can have their annual energy needs met by 1 terajoule of energy. Actual results for 2014–15 exceeded the 2014 milestone (23.74) and 2020 target (24.82) for South Australia’s Strategic Plan target T60. The 2016–17 Target is based on a linear progression between the 2014 milestone and the 2020 target for SASP target T60.

24.34 26.71 24.14 26.71

Sub-program 7.5: Electricity and Gas Technical and Safety Regulation


Enforcement, compliance and promotion of technical and safety regulation and the monitoring and management of emergency (energy related) events.

State Development


2016–17 Budget

2015–16 Estimated


2014–15 Actual

$000 $000 $000 $000 Expenses ...................................................................... 5 277 5 111 5 085 4 997 Income .......................................................................... 5 182 5 036 4 904 4 871

Net cost of sub-program 95 75 181 126 FTEs as at 30 June (No.) 33 33 32 33









• Continued to report low levels of gas and electricity accidents and fatalities.

• Contributed to the development, revision and amendment of industry standards.

• Delivered amendments to the Electricity Act 1996, the Gas Act 1997 and related regulations for technical and safety issues including hazard trees; the approval of safety, reliability, maintenance and technical management plans and the implementation of the intergovernmental agreement on electricity industry safety.

Targets 2016–17

• Continue to report low levels of gas and electricity accidents and fatalities as the overarching objective of the Office of the Technical Regulator.

• Continue playing a major role in developing better national standards with the release of further revised standards over the target period.

• Implement the electronic Certificate of Compliance project to enable plumbers, gas fitters and electricians to submit electronically details of plumbing, gas and electrical installation to the Office of the Technical Regulator.

• Develop changes to the Gas and Electricity Regulations to support implementation of electronic Certificates of Compliance.

State Development


Activity indicators

2016–17

Projection

2015–16 Estimated

Result 2015–16


Actual

No. of safety presentations to key stakeholders Some of the presentations provided by the Office of the Technical Regulator are in collaboration with industry training bodies as part of the training for apprentices or are as a refresher course for licenced trade personnel.

140 130 130 100

No. of proactive technical and safety audits 2 100 2 100 2 100 2 114

Sub-program 7.6: RenewablesSA


As of 1 March 2016, the resources associated with this program (FTEs and budget) were transferred to the Low Carbon Economy Unit within the Department of the Premier and Cabinet (DPC). Accordingly, this function/activity has no Department of State Development budget or targets for 2016–17.

2016–17 Budget

2015–16 Estimated


2014–15 Actual

$000 $000 $000 $000 Expenses ...................................................................... — 515 901 793 Income .......................................................................... — 23 — —

Net cost of sub-program — 492 901 793 FTEs as at 30 June (No.) — — 4 4



The $0.5 million decrease in expenses is due to the transfer of RenewablesSA to DPC on 1 March 2016.






• Delivered a Low Carbon Investment Plan to support the achievement of $10 billion investment target in low carbon generation by 2025.

• Implemented Stage 1 of the Bioenergy Roadmap to map the state for bioenergy potential.

• Progressed a number of projects to leverage external and Commonwealth Government funding.

State Development


Program 8: Water Industry Technical and Safety Regulation


Enforcement, compliance and promotion of technical and safety regulation of plumbing and equipment.


2016–17 Budget

2015–16 Estimated

Result 2015–16

Budget(a) 2014–15

Actual

$000 $000 $000 $000

Expenses Employee benefit expenses.......................................... 1 596 1 549 1 562 1 483 Supplies and services ................................................... 1 180 829 1 150 953 Depreciation and amortisation expense ....................... 55 10 12 10 Intra-government transfer expenses ............................. 4 5 7 2 Other expenses ............................................................ 12 9 7 7

Total expenses 2 847 2 402 2 738 2 455

Income Intra-government transfers ........................................... 2 583 2 512 2 512 2 467 Sales of goods and services ......................................... 16 56 11 21 Net gain or loss from disposal of assets ....................... — — — -7 Other income ................................................................ 26 33 10 16

Total income 2 625 2 601 2 533 2 497

Net cost of providing services 222 -199 205 -42






The $0.4 million increase in expenses is due to the reclassification of expenditure from operating to investing on the Electronic Certificates of Compliance project in 2015–16.


The $0.3 million decrease in expenses is primarily due to the reclassification of expenditure from operating to investing on the Electronic Certificates of Compliance project.



State Development



• Continued presence of the Office of the Technical Regulator in metropolitan and regional areas through participation at stakeholder meetings, presentations and regular audits of onsite plumbing and equipment.

• Completed stage one of the electronic Certificates of Compliance project for the plumbing, gas and electrical industries.

• Completed the construction phase of the drainage web map project, a joint partnership between the Department of Planning, Transport and Infrastructure and the Department of State Development, resulting in plumbers and home owners being able to access as-constructed plans for property on-site sanitary drainage installations.

• Requested safety, reliability, maintenance and technical management plans from all licensed water industry entities.

• Continued consultation with the water industry, including presentation to stakeholders, involvement on water industry representative committees and development of non-drinking water guideline.

• Consolidated annual technical reporting requirements by water industry entities to satisfy all water regulators.

Targets 2016–17

• Assist in maintaining low levels of water industry incidents through engagement and education.

• Publish non-drinking water guidelines, clarifying requirements for non-drinking water infrastructure and on-site plumbing installations.

• Implement the electronic Certificate of Compliance project. This will enable plumbers, gas fitters and electricians to submit electronically details of plumbing, gas and electrical installation Certificates of Compliance to the Office of the Technical Regulator.

• Deliver critical technical advice to Department of Environment, Water, and Natural Resources during review of Water Industry Act 2012 and Water Industry Regulations 2012.

Activity indicators

2016–17

Projection

2015–16 Estimated

Result 2015–16


Actual

No. of safety presentations to key stakeholders Some of the presentations provided by the Office of the Technical Regulator are in collaboration with industry training bodies as part of the training for apprentices or are as a refresher course for licensed trade personnel.

55 52 50 47

No. of proactive technical and safety audits of on-site plumbing A higher proportion of regional on-site plumbing audits have been undertaken, along with additional resources required for monitoring non-drinking water systems, each of which require additional travel and/or audit time. As a result, the total number of audits undertaken are expected to be less than the projected number.

7 000 7 300 8 000 7 107

No. of approved safety, reliability, maintenance and technical management plans

40 20 35 n.a.

No. of proactive technical and safety audits of water industry entities operating water and sewerage infrastructure

20 2 5 n.a.

State Development


Program 9: Growing Small Business


Supports small businesses to establish, grow and be sustainable through the operations of the Small Business Unit, the Office of the Small Business Commissioner(1) and the Office of the Industry Advocate.

Sub-programs

9.1 Opportunities for Small Business

9.2 Office of the Industry Advocate


2016–17 Budget

2015–16 Estimated

Result 2015–16

Budget(a) 2014–15

Actual

$000 $000 $000 $000

Expenses Employee benefit expenses.......................................... 2 640 2 052 1 915 1 910 Supplies and services ................................................... 1 860 851 827 782 Depreciation and amortisation expense ....................... 32 14 14 40 Grants and subsidies .................................................... 3 964 699 613 399 Intra-government transfer expenses ............................. 10 7 8 3 Other expenses ............................................................ 21 13 8 7

Total expenses 8 527 3 636 3 385 3 141

Income Other income ................................................................ — — — —

Total income — — — —





1 The Office of the Small Business Commissioner is an independent Statutory Authority that is partly funded through the Administered Items of the Department of State Development. Summary financial information for the Office of the Small Business Commissioner is detailed in the section Additional Information for the Department of State Development. Objectives, targets and performance indicators for the Office of the Small Business Commissioner are detailed in Program 9.1 Opportunities for Small Business.

State Development


Sub-program 9.1: Opportunities for Small Business


The Small Business Unit supports small businesses to establish, grow and be sustainable by providing online self-help tools, resources and information, advice and support for business licensing, along with targeted business development training and workshops.

The Office of the Small Business Commissioner supports business through alternative dispute resolution processes and provision of information on government services. The Small Business Commissioner is responsible for the administration and provision of information on the Retail and Commercial Leases Act 1995 and the Building and Construction Industry Security of Payment Act 2009, while having certain statutory responsibilities under the Late Payment of Government Debts Act 2013 and the Work Health and Safety Act 2012.

2016–17 Budget

2015–16 Estimated


2014–15 Actual

$000 $000 $000 $000 Expenses ...................................................................... 5 752 1 682 1 689 1 473 Income .......................................................................... — — — —





• commencement in 2016–17 of the Small Business Development Grant component of the Northern Economic Plan ($3.3 million)







Opportunities for Small Business:

• launched the Small Business Workshop Program, a series of 75 workshops on business fundamentals to be delivered across metropolitan and regional South Australia and continued hosting Small Business Round Tables

• partnered with Business SA, Regional Development Australia, Business Enterprise Centres, the Office of the Small Business Commissioner, Industry Associations and local councils to support the delivery of a range of business capability development programs and events

State Development


• exceeded the target to support 10 companies to access seed or early stage capital to expand and grow with 19 innovative start-up or early stage businesses receiving funding through the South Australian Micro Finance Fund

• supported 50 small and medium businesses to enter new global markets and 29 companies through the South Australian TradeStart Export Advisers

• upgraded the Australian Business Licensing Information Service to provide mobile access and an improved user experience for businesses accessing regulatory information in conjunction with the state, territory and Commonwealth governments.

Office of the Small Business Commissioner:

• developed recommendations for the Government following a review of the Building and Construction Industry Security of Payment Act 2009 and commenced the process for any associated legislative change.

• completed a review of the Retail and Commercial Leases Act 1995 and provided advice to the Government on the consultation process.

• released a comprehensive information guide to lessors and lessees.

• commenced construction of Small Business shopfront in the Adelaide Central Business District (CBD) to provide focal point for delivery of small business information and services from the Office of the Small Business Commissioner, Department of State Development and the Office of the Industry Advocate.

• developed and enacted Fair Trading (Franchising Industry Dispute Resolution Code) Regulations 2015 to assist with resolving franchising issues.

Targets 2016–17

Opportunities for Small Business:

• continue to support and build the capabilities of South Australian small businesses through the delivery of the Small Business Workshop Program in metropolitan and regional South Australia

• assist at least 50 small and medium businesses to become export ready

• encourage the formation of new businesses and start-ups and support the growth and sustainability of existing businesses.

Office of the Small Business Commissioner:

• improve visibility of the Government of South Australia’s information and services for small business by opening a shop front in the Adelaide CBD

• support the legislative process for amendments to the Building and Construction Industry Security of Payment Act 2009 and the Retail and Commercial Lease Act 1995

• increase contact with Office of Small Business Commissioner by 5 per cent

• review options for improving service to lessors and lessees including a potential information technology upgrade.


2016–17

Target

2015–16 Estimated

Result 2015–16

Target 2014–15

Actual

Opportunities for Small Business Businesses attending Small Business Workshops New indicator.

250 n.a. n.a. n.a.

State Development


2016–17

Target

2015–16 Estimated

Result 2015–16

Target 2014–15

Actual

Office of the Small Business Commissioner Dispute Resolution Cases Total new cases opened.

241 261 214 186

Dispute Resolution Cases Total cases closed successfully where both parties were in agreement and settlement/payment finalised.

129 122 78 68

Dispute Resolution Cases Total cases closed including cases from previous years.

224 214

133 116

Dispute Resolution Cases Cases successfully closed/total cases closed.

58% 57% 59% 59%

Activity indicators

2016–17

Projection

2015–16 Estimated

Result 2015–16


Actual

Opportunities for Small Business No. of firms provided with base level business information resources Data for 2014–15 was not recorded due to the target being under development.

10 469 9 517 8 000 n.a.

No. of firms supported to build business capability Data for 2014–15 was not recorded due to the target being under development.

710 645 700 n.a.

Office of the Small Business Commissioner Small Business Commissioner Act Number of enquiries.

1 275 1 214 1 456 1 266

Retail and Commercial Leases Act Number of enquiries.

1 444 1 375 1 342 1 167

Security of Payments Act Number of enquiries.

77 73 84 73

Other Jurisdiction Number of enquiries.

379 361 222 193

Total enquiries — Office of the Small Business Commissioner

3 175 3 023 3 104 2 699

Events Number of Events/Training Sessions

19 18 14 12

Website Statistics Number of visits to the website

22 656 21 577 23 643 20 559

Sub-program 9.2: Office of the Industry Advocate


Develops and implements reforms that aim to generate more local jobs, local supplier inputs through supply chains and local investment from government contracts. Focuses on initiatives that help small to medium enterprises participate in government procurement.

Builds the capacity of businesses in the state to successfully tender for government contracts, recommend changes to policy and practices that remove impediments to industry participation and initiate procurement reforms that provide greater economic benefit to the state and businesses.

State Development


2016–17 Budget

2015–16 Estimated


2014–15 Actual

$000 $000 $000 $000 Expenses ...................................................................... 2 775 1 954 1 696 1 668 Income .......................................................................... — — — —





• support for category manager activities to develop an understanding of the capabilities of businesses in South Australia that have the potential to either supply directly or indirectly to the government ($0.4 million)

• additional assistance for small to medium-sized South Australian steel fabrication and manufacturing businesses to capitalise on the opportunities from being accredited under national certification ($0.3 million)

• increased expenditure in line with the project plan for the Aboriginal Procurement initiative ($0.1 million).



• commencement of the program to assist small and medium-sized South Australian steel fabrication businesses to comply with Australian Standards for steel fabrication and to achieve accreditation under the National Structural Steelwork Compliance Scheme ($0.1 million)

• commencement of the Aboriginal Procurement initiative ($0.1 million).



• commencement in 2015–16 of the program to assist small and medium-sized South Australian steel fabrication businesses to comply with Australian Standards for steel fabrication and to achieve accreditation under the National Structural Steelwork Compliance Scheme ($0.1 million)

• commencement in 2015–16 of the Aboriginal Procurement initiative ($0.1 million).


• Identified that state government procurement of goods and services from suppliers located in South Australia has increased — up almost 40 per cent in 2014–15 over the 2012–13 baseline.

• Delivered strong levels of South Australian employment and work package utilisation from major projects through Industry Participation Policy (IPP).

• Led a new initiative, Meet the Buyer Northern Adelaide and provided Supplying to Government workshops to link business to relevant government contracts and projects including the Northern Connector.

State Development


• Led the Steel Initiative launched by the Minister for Mineral Resources and Energy that ensured steelmakers and fabricators can compete fairly for local contracts, giving the industry a competitive edge against low quality imports.

• Assisted more than 10 South Australian based steel fabricators via grants to progress through Category 1 of the National Structural Steelwork Compliance Scheme.

• Achieved positive satisfaction ratings from the Connecting with Business program, with over 1200 attendees estimated for Meet the Buyer events in 2015–16 (with over 90 per cent satisfaction rating) and 140 attendees of the Supplying to Government Workshops in 2015–16 (with 95 per cent satisfaction rating).

Targets 2016–17

• Monitor the application of the minimum IPP weighting of 15 per cent and advise agencies at the time of acquisition planning on how strategically important procurement can generate maximum economic contribution.

• Achieve the economic contribution to the state for projects covered by IPP Plans, including major projects such as those on the North–South Corridor.

• Include a 20 per cent minimum industry participation weighting for procurement and capital projects above $220 000 and this will support the objectives of the Northern Economic Plan.

• Ensure Government construction contracts use steel from Australian Standards certified mills and fabricators, through a surveillance program.

• Progress South Australian based steel fabricators through Categories 2 and 3 of the National Structural Steelwork Compliance Scheme with the assistance of further grant funding.

• Grow Aboriginal Industry Participation by building the capacity of Aboriginal businesses to successfully tender for government contracts, removing barriers and identifying opportunities to support Aboriginal business participation.


2016–17

Target

2015–16 Estimated

Result 2015–16

Target 2014–15

Actual

% of value of goods and services contracts awarded to suppliers in SA

81% 81% 81% 90%

Construction projects above $50m awarded in 2015–16 • per cent of SA residents labour hours in the Head

Contract • per cent of estimated $ spend on SA residents, SA

capital equipment and SA products or services from work packages

85%

90%

86%

91%

85%

90%

n.a.

n.a.

Meet the Buyer events • per cent satisfied attendees

90%

94%

85%

82%

Supplying to Government workshops • per cent satisfied attendees

95%

95%

95%

95%

Activity indicators

2016–17

Projection

2015–16 Estimated

Result 2015–16


Actual

Meet the Buyer events • Number of attendees

1 800

1 200

1 000

1 232

Supplying to Government workshops • Number of attendees

180

140

150

148

State Development


Program 10: International Engagement, Trade, Migration and International Education


Develop and implement strategies and programs that facilitate international exports, the growth of the international education sector and maximise the benefits of skilled and business migration.


2016–17 Budget

2015–16 Estimated

Result 2015–16

Budget (a) 2014–15

Actual

$000 $000 $000 $000

Expenses Employee benefit expenses.......................................... 7 990 7 998 7 261 7 551 Supplies and services ................................................... 6 983 7 033 7 018 4 384 Depreciation and amortisation expenses ...................... 77 73 73 51 Borrowing costs ............................................................ 12 12 — 17 Grants and subsidies .................................................... 2 181 2 086 1 841 151 Intra-government transfers ........................................... 1 898 1 884 941 1 674 Other expenses ............................................................ 38 80 50 32

Total expenses 19 179 19 166 17 184 13 860

Income Commonwealth Government revenues ........................ 351 345 345 264 Intra-government transfers ........................................... — 127 57 14 Fees, fines and penalties .............................................. 700 700 — — Sales of goods and services ......................................... 6 108 4 2 Net gain or loss from disposal of assets ....................... — — — -1 Other income ................................................................ 7 319 660 173

Total income 1 064 1 599 1 066 452







The minor variance in expenses is primarily due to:

• additional support to advance the South Australia China Engagement Strategy by increasing the state’s presence in the Shandong Province ($0.4 million)

• additional support to Business SA to assist in preparing the South Australian small to medium entities to engage in the export market ($0.3 million)

State Development


partially offset by

• a once-off expenditure in 2015–16 for the Shandong County Mayors training program and the Singapore and Kuala Lumpur Alumni events ($0.4 million).



• commencement of additional support for international engagement strategy development and missions activity ($1.0 million)

• expansion of the Export Partnership Program ($0.7 million).

The $0.5 million increase in income is primarily due to once-off contributions in 2015–16 for the Shandong County Mayors training program and the Singapore and Kuala Lumpur Alumni events.



• commencement in 2015–16 of the Destination Adelaide program to support the development and growth of the state's education industry ($1.5 million)

• additional resources from 2015–16 to implement the South Australia — South East Asia Engagement Strategy ($1.0 million)

• commencement in 2015–16 of additional support for international engagement strategy development and missions activity ($1.0 million)

• expansion in 2015–16 of the Export Partnership Program ($0.7 million)



• the introduction in 2015–16 of immigration application fees ($0.7 million)

• once-off contributions in 2015–16 for the Shandong County Mayors training program ($0.2 million) and the Singapore and Kuala Lumpur Alumni events ($0.2 million).


• Delivered the government’s comprehensive program of business missions engaging with approximately 280 businesses participating in outbound missions to China, India and South East Asia.

• Entered into a new Sister State Relationship with the Indian state of Rajasthan, and reactivated Sister State Relations with the Indonesian province of West Java.

• Developed and delivered the new Business Education Program to better equip and ready South Australian businesses for more effective commercial engagement with target markets.

• Achieved over $23.7 million worth of export sales and 12 new distribution agreements through the Tradestart service in assisting 41 companies between July 2015 and April 2016.

• Developed locally and promoted internationally the new Destination Adelaide plan.

• Continued delivery of the revamped Export Partnership Program with $1.65 million worth of grant support allocated to 75 businesses.

State Development


Targets 2016–17

• Deliver the government’s international program of inbound and outbound business missions in support of greater commercial engagement with target markets.

• Develop a new program of strategic engagement with Europe.

• Continue to develop a comprehensive Business Education Program to prepare South Australian businesses for international export success.

• Continue to deliver the Tradestart advisory program in partnership with Austrade and the Export Partnership Program, supporting businesses in developing new export markets.

• Expand the South Australia Club network with new chapters in Singapore, Bangkok and Mumbai.

• Achieve 2400 general skills migration nominations and 250 business migration nominations by 2017.


2016–17

Target

2015–16 Estimated

Result 2015–16

Target 2014–15

Actual

Business migration (892, 893 Visa): • no. of state nominations approved 30 55 50 82 • no. of jobs created 18 38 30 86 • value of investments The 892, 893 visa outcomes relate to business migrants who have successfully met migration requirements and can now apply for permanent residency. These outcomes are verified after two years.

$15m $24m $25m $72m

Business migration (132, 188 Visa) • no. of state nominations approved 250 240 200 187 • no. of jobs created (FTE) 300 400 200 369 • value of investments The 132, 188 visa results relate to investment outcomes anticipated by new business migrants nominated by the state to support their visa application to undertake business activities in South Australia. These outcomes are verified after two years.

$125m $164m $100m $161m

Support South Australian companies to achieve export success in Shandong, China New indicator.

20 20 n.a. n.a.

Support South Australian companies to achieve export success through state government led engagement programs with China, India, South East Asia, Europe, North Asia and the Middle East North Africa region.

30 15 10 n.a.

Total number of supported export success 50 60 50 53 International student numbers

The 2017 calendar year target is 35 500. 34 060 32 800 32 089 24 555

Activity indicators

2016–17

Projection

2015–16 Estimated

Result 2015–16


Actual

Regional Certifying Body (RCB): The RCB estimate for 2016–17 could be affected by approximately 20 per cent if the Commonwealth Government removes the direct entry pathway for RSMS for Skill Level 3 occupations

• No. of applications processed for ‘advice’ by RCB The number of applications received for RCB advice, and those with a ‘satisfied’ outcome in 2015–16 was similar to the previous year. The number of applications and satisfied advice outcomes is expected to decrease slightly in 2016–17 due to softer labour market conditions and an increased level of integrity focus from the Commonwealth Government.

600 620 450 597

State Development


2016–17

Projection

2015–16 Estimated

Result 2015–16


Actual

State nominations: • No. of skilled nominations approved (489, 190 visa

subclass) 2 400 2 450 2 400 2 405

• No. of business skills nominations approved — new migrants (188, 132 visa subclass)

General factors that affect the demand for state nomination and South Australian employer nomination advice by the RCB are job opportunities, global and national competition for skilled migrants, restrictedness of nomination or visa eligibility criteria imposed by the Government of South Australia or Commonwealth Department of Immigration and Border Protection (DIBP) and global economic conditions.

250 240 200 187

International Engagement and Trade • Deliver a program of government led outbound missions

New indicator. 7 n.a. n.a. n.a.

• Deliver a program of government arranged inbound missions New indicator.

15 n.a. n.a. n.a.

• Delivery of Business Education Program sessions New indicator.

14 n.a. n.a. n.a.

• New chapters of the South Australia club New indicator.

3 n.a. n.a. n.a.

State Development


Program 11: Investment Attraction South Australia


Lead and coordinate cross-government investment attraction activity and seek and establish investment across major industry sectors.

Attract new investors and businesses to South Australia, and identify business development opportunities for the state.


2016–17 Budget

2015–16 Estimated

Result 2015–16

Budget(a) 2014–15

Actual

$000 $000 $000 $000

Expenses Employee benefit expenses.......................................... 6 087 3 589 902 873 Supplies and services ................................................... 2 845 1 664 355 266 Grants and subsidies .................................................... 14 550 1 750 5 000 5 505 Intra-government transfers ........................................... 225 75 — —

Total expenses 23 707 7 078 6 257 6 644

Income Intra-government transfers ........................................... — 1 400 — — Other income ................................................................ — — — 13

Total income — 1 400 — 13


FTEs as at 30 June (No.) 41 31 7 8





• increase and re-profile of the Economic Investment Fund in 2016–17 ($11.0 million)

• additional support for Defence Industry Attraction under the Economic Investment Fund ($2.0 million)

• increased support from across the Department of State Development towards the establishment of Investment Attraction South Australia from 1 April 2016 ($3.2 million)

• increased support from other agencies towards the establishment of Investment Attraction South Australia ($0.5 million).

The $1.4 million decrease in income is due to a once-off contribution in 2015–16 to the Economic Investment Fund from the Regional Development Fund.

State Development




• the transfer of resources from other departmental programs ($2.6 million) and other agencies ($1.4 million) to establish the Investment Attraction unit from October 2015

partially offset by

• carryover of expenditure from 2015–16 to 2016–17 for the Economic Investment Fund ($3.2 million).

The $1.4 million increase in income is due to a once-off contribution in 2015–16 to the Economic Investment Fund from the Regional Development Fund.



• the commencement in 2015–16 of the Economic Investment Fund ($1.8 million)

• the transfer of resources from other departmental programs ($2.6 million) and other agencies ($1.4 million) to establish the Investment Attraction unit from October 2015

partially offset by

• once-off expenditure in 2014–15 for the Hewlett-Packard Innovation and Collaboration Centre ($5.5 million).

The $1.4 million increase in income is due to a once-off contribution in 2015–16 to the Economic Investment Fund from the Regional Development Fund.


• Established a new stand-alone Investment Attraction Agency with a priority on attracting foreign direct investment, supported by the Department of State Development, including the Economic Investment Fund rules, governance and compliance over the fund.

• In the nine months since IASA started, 10 companies have been provided assistance, in the form of case management services and Economic Investment Fund grants. This has led to more than $950 million worth of investment projects for the state, which will create more than 3800 direct and associated jobs for South Australians.

• Developed and marketed suitable projects for investment aimed at international markets and promoted these in market through business and trade missions.

• Identified and attracted new investors to the state primarily through case management expertise, creating capital investment from secured investment projects.

• Facilitated reinvestment from firms with an existing presence in the state to expand their business and providing direct employment opportunities for South Australians.

• Established the Innovation and Collaboration Centre with Hewlett Packard and the University of South Australia to assist students and SMEs to take advantage of growth opportunities in the information technology sector.

State Development


Targets 2016–17

• Facilitate the creation of new and transformational jobs through investment in targeted industries and contribute towards the delivery of 6000 jobs by the end of 2017.

• Continue to proactively identify and attract new investors to the state and facilitate growth and reinvestment from firms with an existing presence in the state.

• Continue to develop and market suitable investment projects for the international and national markets.

• Promote South Australia interstate and internationally as a Global Business location increasing awareness of the state and the business proposition and opportunities available to investors.

• Work with the Investment Attraction South Australia Board and leverage members to meet investment and job creation targets and maintain a strong pipeline of investment targets.

• Provide leadership in investment opportunities that stem from whole of government initiatives contributing to the economic impact to the state.

State Development


Program 12: Employment and Skills Formation


Strengthen the economic prosperity and social wellbeing of South Australians through:

• strategic employment, skills formation and workforce development

• implementing the WorkReady and Jobs and Skills policies.

Sub-programs

12.1 Training, Employment, Skills and Higher Education

12.2 Quality Assurance and Regulatory Services


2016–17 Budget

2015–16 Estimated

Result 2015–16

Budget(a) 2014–15

Actual

$000 $000 $000 $000

Expenses Employee benefit expenses.......................................... 243 413 255 186 238 058 255 415 Supplies and services ................................................... 110 943 98 894 177 679 105 318 Depreciation and amortisation expenses ...................... 8 564 26 276 26 627 25 356 Borrowing costs ............................................................ — — — 1 Grants and subsidies .................................................... 91 131 100 835 34 092 121 927 Intra-government transfers ........................................... 491 611 751 547 Other expenses ............................................................ 2 833 4 460 3 397 6 522

Total expenses 457 375 486 262 480 604 515 086

Income Commonwealth Government revenues ........................ 39 734 29 247 39 879 43 181 Intra-government transfers ........................................... 1 109 1 109 1 109 1 219 Other grants.................................................................. 2 143 1 988 2 142 3 419 Sales of goods and services ......................................... 111 648 103 452 92 661 85 993 Interest revenues .......................................................... — — — 3 Net gain or loss from disposal of assets ....................... 1 348 -8 743 -46 -2 008 Other income ................................................................ 2 571 3 022 2 866 6 892

Total income 158 553 130 075 138 611 138 699


FTEs as at 30 June (No.)(b) 2 480 2 612 2 634 2 663



State Development


Sub-program 12.1: Training, Employment, Skills and Higher Education


Coordinate high quality training, employment and skills development targeted to South Australia’s economic priorities, economic transformation and jobs through:

• aligning the investment of public funds with strategic needs

• vocational education and training provided by TAFE SA and other registered training organisations

• supporting individuals and employers to develop workforce skills that are linked to employment opportunities, such as through apprenticeships

• employer-led projects that focus on assisting job seekers and people with barriers to employment, to gain a job in their local communities

• supporting industries affected by economic restructuring to generate jobs and support vulnerable workers to gain the skills required to transition to new jobs

• building foundation skills through vocational and community education, providing career advice, skills recognition and employment services that prepare people for training and/or job opportunities

• foster collaboration between government, universities and industry in areas with economic potential for the state and support the higher education sector in sustaining the state’s reputation for high quality teaching and learning and research

• provide state and national policy advice on training, employment, skills and higher education policies and planning.

2016–17 Budget

2015–16 Estimated


2014–15 Actual

$000 $000 $000 $000 Expenses ...................................................................... 453 750 482 449 476 871 511 315 Income .......................................................................... 158 553 130 075 138 611 137 982

Net cost of sub-program 295 197 352 374 338 260 373 333 FTEs as at 30 June (No.) 2 455 2 587 2 609 2 638




• improved targeting of training across the vocational education and training sector ($16.6 million)

• greater efficiencies and improved targeting of training in line with the TAFE SA forward strategy ($7.5 million)

• targeted voluntary separation packages provided by TAFE SA in 2015–16 ($3.1million)


• cessation of funding for the Office of the former Minister for Employment, Higher Education and Skills in 2015–16 ($1.1 million)

• finalisation in 2015–16 of VET in Schools grants to non-government schools to align with the government schools funding arrangements ($0.8 million)

State Development


partially offset by

• commencement in 2016–17 of the Disability Employment Hub ($1.7 million) component of the Northern Economic Plan.


• increased Commonwealth Government funding in 2016–17 under the National Partnership Agreement on Skills Reform ($10.1 million)

• net loss on disposal in 2015–16 on the O'Halloran Hill and Marleston TAFE sites ($9.0 million)

• increased fee for service revenue in 2016–17 in line with the TAFE SA forward strategy ($8.3 million)

• net gain from the sale in 2016–17 of the Gilles Plains TAFE site ($1.3 million).



• targeted voluntary separation packages provided by TAFE SA in 2015–16 ($2.3 million)

• additional places for vocational education and training ($3.0 million)

partially offset by

• cessation of funding for the Office of the former Minister for Employment, Higher Education and Skills in 2015–16 ($0.9 million).

The $8.5 million decrease in income is primarily due to a net loss on disposal in 2015–16 on the O'Halloran Hill and Marleston TAFE sites ($9.0 million).



• increased resources in 2014–15 to meet the level of demand for vocational education and training ($23.5 million)


• the accounting treatment in 2014–15 of asset revaluations ($2.7 million) and assets transferred from the Department of State Development to TAFE SA ($1.3 million)

• targeted voluntary separation packages provided by the Department of State Development in 2014–15 ($1.9 million)

• reduced expenditure in 2015–16 under the Critical Skills Investment Fund ($2.0 million)

• reduction in targeted voluntary separation packages provided by TAFE SA in 2015–16 ($1.3 million)

• cessation of funding the Office for the former Minister for Employment, Higher Education and Skills in 2015–16 ($1.0 million)

• finalisation in 2014–15 of the Commonwealth Government component of the Joint Group Training program ($0.7 million)

partially offset by

• increased resources in 2015–16 to implement the TAFE SA forward strategy ($11.4 million).

State Development



• net loss on disposal in 2015–16 on the O'Halloran Hill and Marleston TAFE sites ($9.0 million)

• Commonwealth Government funding received in 2014–15 under the National Partnership Agreement on Skills Reform for budgeted payments not received in 2013–14 ($4.6 million)

• finalisation in 2014–15 of the Commonwealth Government component of the Joint Group Training ($0.7 million) and Child Care Fee Waiver ($1.8 million) programs

• a once-off return of funds in 2014–15 from Group Training Organisations that received the payroll tax exemption ($1.1 million)

partially offset by

• increased fee for service revenue in 2015–16 associated with the implementation of the TAFE SA forward strategy ($9.1 million)

• the accounting treatment in 2014–15 of assets transferred from the Department of State Development to TAFE SA ($1.3 million).


• Provided government subsidised vocational education and training, through public and private providers, to 86 300 people in South Australia in 2015.

• Achieved through the WorkReady Jobs First Projects, 7800 people including young, Aboriginal, mature aged and people with a disability, to participate in 100 projects developed with employers across metropolitan and regional South Australia.

• Released the Training and Skills Commission report on South Australia's Industry Priority Qualifications across 18 industry sectors following unprecedented industry engagement, response and endorsement.

• Completed the statewide public consultation to inform design and implementation of the TAFE SA Improving Access to Education Strategy, to ensure innovative and flexible delivery of training.

• Implemented the Knowledge Exchange Program — a whole of government framework that facilitates increased opportunities for both staff and students to access exchanges across the higher education sector.

Targets 2016–17

• Strengthen the WorkReady Jobs First approach by implementing projects that: provide individuals with foundation skills (language, literacy and numeracy) and results in pathways to higher level courses or into entry level jobs; and upskill existing workers to progress in their industry or transition to a new job.

• Continue to engage with business and industry on the skills they need for their current and future workforce.

• Implement local and regional initiatives that integrate skills and employment activity, career services and family case management, in response to unique local circumstances, including redundancies.

• Implement a consistent pre-enrolment upfront assessment of need process to support increased qualification completions, better targeting of investment in foundation skills and improved literacy and numeracy levels.

• Continue implementation of the TAFE SA Improving Access to Education Strategy to deliver training that is better aligned to local community and business needs and job outcomes.

State Development


• Strengthen collaboration between government and the higher education sector using the Premier’s Higher Education Committee as a vehicle to champion and drive agreed projects in areas such as knowledge exchange, defence and research commercialisation.


2016–17

Target

2015–16 Estimated

Result 2015–16

Target 2014–15

Actual

% of South Australians aged 15 to 64 participating in VET

Performance indicator data is aligned to Commonwealth Government and state recurrent and specific funding under the National Agreement for Skills and Workforce Development with the Commonwealth Government, unless otherwise stated. Targets and results are for calendar years unless otherwise stated.

8.5% 9.6% 11.5% 11.5%

Load pass rates Load pass rates report the extent to which students pass their assessment in an assessable module or unit of competency. Performance indicator data is aligned to Commonwealth Government and state recurrent and specific funding under the National Agreement for Skills and Workforce Development with the Commonwealth Government, unless otherwise stated. Targets and results are for calendar years unless otherwise stated.

87.5% 86.8% 87.5% 85.9%

% of qualification completions at certificate III and above categorised by student groups:

73.0% 70.7% 72.0% 64.6%

• % of Indigenous students 50.0% 42.3% 42.0% 44.5% • % of students with a disability 58.0% 56.8% 47.5% 54.0% • % of mature age students (45–64)

Student groups are those targeted in the National Partnerships Agreement for Skills Reform Implementation Plan.

Performance indicator data is aligned to Commonwealth Government and state recurrent and specific funding under the National Agreement for Skills and Workforce Development with the Commonwealth Government, unless otherwise stated. Targets and results are for calendar years unless otherwise stated. Actuals for 2014–15 are sourced from the most recent information published by the NCVER in July 2015, for the 2013 calendar year. Estimated outcomes for 2015–16 are prepared in accordance with NCVER methods, pending the release of actual information by the NCVER.

77.0% 80.9% 79.3% 78.6%

% of apprentices and trainees completing their training contract Results are based on the most recent confirmed completion rates available from the National Centre for Vocational Education Research (NCVER). The 2015–16 estimated result is for apprentices and trainees who commenced in 2010.

57.0% 56.7% 56.0% 55.8%

% of VET graduates employed or in further study after the training


90.0% 87.6% 90.0% 89.0%

% of graduates unemployed before their VET course who found work after training


45.0% 43.0% 45.0% 43.6%

No. of participants in employment projects and services 15 250 12 850 11 400 10 080 No. of participants gaining a job through employment participation programs

7 200 6 950 5 800 3 840

No. of participants in pathways projects and services Pathway projects and services provide individuals with foundation learning that supports pathways to higher level courses that lead to entry level jobs

27 400 21 830 25 000 25 456

State Development


Activity indicators(a)

2016–17

Projection

2015–16 Estimated

Result 2015–16


Actual

Full-year training equivalent This indicator is redundant for 2016–17 as the data source is not available. An alternative source reports on ‘annual hours of VET delivery’.

n.a. 32 300 40 400 40 400

Annual hours of VET delivery (million) This is a new indicator in 2016–17. This replaces the ‘Full-year training equivalent’ indicator.

20.5 23.3 n.a. 29.1

Government expenditure per full-year training equivalents This indicator is redundant for 2016–17as the data source is not available. The alternative source reports government expenditure per annual hours of VET delivery.

n.a. $11 100

$10 200

$10 100

Government expenditure per annual hours of VET delivery This is a new indicator in 2016–17. This replaces ‘Government expenditure per full-year training equivalents’ indicator (above).

$15.80 $15.40 n.a. $13.98

(a) All indicator data is aligned to Commonwealth Government and state recurrent and specific funding under the National Agreement for Skills and Workforce Development with the Commonwealth Government, unless otherwise stated. Targets and results are for calendar years unless otherwise stated.

State Development


Sub-program 12.2: Quality Assurance and Regulatory Services


Administer the state’s vocational education and training system through:

• quality assurance of WorkReady training providers and other training organisations in accordance with contract terms and conditions

• quality oversight by the Training and Skills Commission

• regulating and administering the apprenticeship and traineeship system

• providing state and national policy advice.

2016–17 Budget

2015–16 Estimated


2014–15 Actual

$000 $000 $000 $000 Expenses ...................................................................... 3 625 3 813 3 733 3 771 Income .......................................................................... — — — 717








The $0.7 million decrease in income is due to once-off revenue received in 2014–15 relating to the Apprenticeship and Traineeship online Application System.


• Conducted graduate surveys or independent validation of assessment for 36 publicly funded courses to verify that graduates can apply their skills and knowledge in the workplace to employer expectations.

• Conducted 137 reviews of skills and employment services providers to assess compliance with quality standards and contractual obligations.

• Supported VET trainers through Foundation Skills 2015–16 funding, and partnered with Northern Adelaide State Secondary Schools’ Alliance (NASSSA) to deliver the Building Capability program to 18 trainers and teachers from Registered Training Organisations and secondary schools.

Targets 2016–17

• Continue the implementation of national VET sector reforms through changes to the regulation of apprenticeships and traineeships.

• Establish best practice processes including industry engagement and upfront assessment of individual’s needs by pro-actively building the capability of providers.

State Development


• Conduct reviews against contract terms and conditions for Skills and Employment Services providers to assess compliance with quality standards and contractual obligations.

• Provide a responsive, confidential tailored service to the public to address employment and/or training related enquiries or complaints.


2016–17

Target

2015–16 Estimated

Result 2015–16

Target 2014–15

Actual

% of VET graduates rating their satisfaction with quality of training at four or more on a scale of 1 (strongly disagree) to 5 (strongly agree)

VET performance indicator data is aligned to Commonwealth Government and state recurrent and specific funding under the National Agreement for Skills and Workforce Development, unless otherwise stated. Targets and results for are for calendar years unless otherwise stated.

90.0% 88.5% 90.0% 89.1%

% of training contracts approved within 10 days from time of receipt From 2016–17 the indicator has been revised to approve training contracts within 5 days from time of receipt. The 2015–16 target and results are calculated from the point at which all completed training documentation is received for approval.

n.a. 96.0% 95.0% 96.0%

% of training contracts approved within 5 days from time of receipt Revised indicator for 2016–17 showing a reduced time for approving training contracts from within 10 days to within 5 days from time of receipt. The results are calculated from the point at which all completed training documentation is received for approval.

95.0% n.a. n.a. n.a.

% of satisfied clients as measured through annual sample surveys:

• trainees/apprentices 95.0% 92.0% 95.0% 95.0% • employers 95.0% 88.0% 95.0% 92.0%

State Development


Department of State DevelopmentStatement of comprehensive income

2016-17Budget

2015-16Estimated

Result

2015-16Budget

2014-15

Actual$000 $000 $000 $000



Supplies and servicesGeneral supplies and services........................................... 170 846 154 521 241 502 156 555Consultancy expenses....................................................... 5 326 5 178 7 227 4 848

Depreciation and amortisation.............................................. 20 083 36 627 36 354 35 758Borrowing costs.................................................................... 12 12 — 20Grants and subsidies............................................................ 203 693 186 937 107 169 183 811Intra government transfers.................................................... 117 111 119 513 121 166 119 250Other expenses..................................................................... 4 134 6 032 4 453 7 831

Total expenses 847 616 847 695 829 036 845 969

IncomeCommonwealth revenues..................................................... 40 320 30 207 40 450 44 284Intra-government transfers.................................................... 12 818 15 380 12 734 16 185Other grants.......................................................................... 2 143 1 988 2 522 3 599Fees, fines and penalties...................................................... 22 926 23 098 22 694 21 497Sales of goods and services................................................. 124 292 116 690 105 125 97 099Interest revenues.................................................................. — 20 — 26Net gain or loss on disposal of assets.................................. 1 539 -9 234 -46 -2 300Resources received free of charge....................................... 300 — — 2 149Other income........................................................................ 5 608 9 177 8 438 10 217

Total income 209 946 187 326 191 917 192 756



IncomeAppropriation...................................................................... 638 999 636 262 649 586 670 395Other income...................................................................... — 4 776 — 16 325

ExpensesCash alignment.................................................................. — 47 946 — 6 379Payments to Consolidated Account................................... 652 319 7 979 2 101 8 482

Net income from/expenses to state government -13 320 585 113 647 485 671 859

Total comprehensive result -650 990 -75 256 10 366 18 646

State Development


Department of State DevelopmentStatement of financial position

2016-17Budget

2015-16Estimated

Result

2015-16Budget

2014-15

Actual$000 $000 $000 $000

AssetsCurrent assetsCash and cash equivalents................................................... 137 618 127 775 159 410 186 072Receivables.......................................................................... 126 978 127 053 73 281 127 128Inventories............................................................................ 1 404 1 404 742 1 404Other current assets............................................................. 2 561 2 634 2 989 2 222Non-current assets held for sale........................................... 30 011 30 011 48 590 30 011


Non current assets

Financial assets.................................................................... 6 484 6 484 6 103 6 484Land and improvements....................................................... 309 917 928 266 950 707 945 745Plant and equipment............................................................. 31 863 29 719 41 208 28 161Heritage assets..................................................................... 5 265 5 265 4 996 5 240Intangible assets................................................................... 31 103 31 809 28 770 26 923

Total non-current assets 384 632 1 001 543 1 031 784 1 012 553

Total assets 683 204 1 290 420 1 316 796 1 359 390

LiabilitiesCurrent liabilitiesPayables............................................................................... 169 531 168 520 102 059 167 510Employee Benefits

Salaries and wages........................................................... 2 522 1 620 270 7 115Annual leave..................................................................... 14 806 14 497 14 185 14 188Long service leave............................................................ 4 911 4 566 7 112 4 221Other................................................................................. 6 593 6 515 5 800 6 437

Short-term provisions............................................................ 2 119 2 044 2 343 1 969Other current liabilities.......................................................... 11 032 11 032 12 010 10 959


Non current liabilitiesLong-term employee benefits

Long service leave............................................................ 84 054 76 463 75 350 68 872Other................................................................................. 209 209 188 209

Long-term provisions............................................................ 6 167 6 342 9 016 6 048Other non-current liabilities................................................... 1 036 1 349 578 818



Net assets 380 224 997 263 1 087 885 1 071 044

State Development


Department of State DevelopmentStatement of financial position

2016-17Budget

2015-16Estimated

Result

2015-16Budget

2014-15

Actual$000 $000 $000 $000

Equity

Contributed capital................................................................ 66 141 32 190 253 692 30 715Retained earnings................................................................. 302 863 953 853 466 380 1 029 109Asset revaluation reserve..................................................... 7 340 7 340 364 314 7 340Other reserves...................................................................... 3 880 3 880 3 499 3 880

Total equity 380 224 997 263 1 087 885 1 071 044


State Development


Department of State DevelopmentStatement of cash flows

2016-17Budget

2015-16Estimated

Result

2015-16Budget

2014-15

Actual$000 $000 $000 $000

Operating activitiesCash outflowsEmployee benefit payments................................................... 316 523 335 566 311 369 334 183Payments for supplies and services...................................... 176 384 158 997 248 896 206 688Interest paid........................................................................... 12 12 — —Grants and subsidies............................................................. 203 693 186 935 107 169 161 917Intra-government transfers..................................................... 117 111 119 513 121 166 101 536Other payments..................................................................... 3 366 4 169 3 964 446


Cash inflowsIntra-government transfers..................................................... 12 818 15 380 12 734 16 211Commonwealth receipts........................................................ 40 320 30 207 40 450 44 496Other grants........................................................................... 2 143 1 988 2 522 3 599Fees, fines and penalties....................................................... 22 926 23 098 22 694 22 173Sales of goods and services.................................................. 124 358 116 756 105 191 66 212Interest received.................................................................... — 20 — 26Dividends received................................................................. 600 600 600 405GST received......................................................................... — — — 18 995Other receipts........................................................................ 4 469 8 043 7 752 16 417


State governmentAppropriation.......................................................................... 638 999 636 262 649 586 670 395Other receipts........................................................................ — 4 776 — 16 325Payments

Cash alignment................................................................... — 47 946 — 6 379Other................................................................................... 652 319 7 979 2 101 8 482

Net cash provided by state government -13 320 585 113 647 485 671 859

Net cash provided by (+)/used in (-) operating activities -622 775 -23 987 46 864 55 623


Cash outflowsPurchase of property, plant and equipment........................... 55 595 37 703 59 525 20 922Purchase of intangibles.......................................................... 2 374 7 658 6 806 5 307Advances paid....................................................................... — — — 12


Cash inflowsProceeds from sale of property, plant and equipment........... 656 636 9 576 7 676 16 132Repayment of advances........................................................ — — — 26

Cash generated from investing activities 656 636 9 576 7 676 16 158

Net cash provided by (+)/used in (-) investing activities 598 667 -35 785 -58 655 -10 083

State Development


Department of State DevelopmentStatement of cash flows

2016-17Budget

2015-16Estimated

Result

2015-16Budget

2014-15

Actual$000 $000 $000 $000


Cash inflowsCapital contributions from state government......................... 33 951 1 475 24 734 10 263Cash transfers from restructuring activities............................ — — — 42 584

Cash generated from financing activities 33 951 1 475 24 734 52 847

Net cash provided by (+)/used in (-) financing activities 33 951 1 475 24 734 52 847

Net increase (+)/decrease (-) in cash equivalents 9 843 -58 297 12 943 98 387



Non cash transactions

Assets received (+)/donated (-) free of charge...................... 300 -934 — 510

State Development


Admininistered Items for the Department of State DevelopmentStatement of comprehensive income

2016-17Budget

2015-16Estimated

Result

2015-16Budget

2014-15

Actual$000 $000 $000 $000


Salaries, wages, annual and sick leave............................. 727 854 916 908Supplies and services

General supplies and services........................................... — 1 118 94 1 130Consultancy expenses....................................................... — — — 1

Grants and subsidies............................................................ 1 341 1 037 373 1 228Intra government transfers.................................................... 6 687 7 455 7 162 6 306Other expenses..................................................................... 258 018 225 972 295 518 243 831

Total expenses 266 773 236 436 304 063 253 404

IncomeIntra-government transfers.................................................... — 89 — —Sales of goods and services................................................. — — — 12Interest revenues.................................................................. — 661 — 821Other income........................................................................ 255 598 225 762 295 518 243 902

Total income 255 598 226 512 295 518 244 735


IncomeAppropriation...................................................................... 11 175 9 554 8 545 8 644Other income...................................................................... — 2 — 5


Total comprehensive result — -368 — -20

State Development


Admininistered Items for the Department of State DevelopmentStatement of financial position

2016-17Budget

2015-16Estimated

Result

2015-16Budget

2014-15

Actual$000 $000 $000 $000

AssetsCurrent assetsCash and cash equivalents................................................... 48 961 48 961 18 549 49 329Receivables.......................................................................... 3 835 3 835 1 565 3 835


Non current assets

Land and improvements....................................................... — — 418 —

Total non-current assets — — 418 —

Total assets 52 796 52 796 20 532 53 164

LiabilitiesCurrent liabilitiesPayables............................................................................... 18 597 18 597 19 060 18 597Other current liabilities.......................................................... 3 3 33 3



Net assets 34 196 34 196 1 439 34 564

Equity

Retained earnings................................................................. 34 196 34 196 1 439 34 564

Total equity 34 196 34 196 1 439 34 564


State Development


Admininistered Items for the Department of State DevelopmentStatement of cash flows

2016-17Budget

2015-16Estimated

Result

2015-16Budget

2014-15

Actual$000 $000 $000 $000

Operating activitiesCash outflowsEmployee benefit payments................................................... 727 854 916 908Payments for supplies and services...................................... — 1 118 94 518Grants and subsidies............................................................. 1 341 1 037 373 1 228Intra-government transfers..................................................... 6 687 7 455 7 162 6 306Other payments..................................................................... 258 018 225 972 295 518 247 106


Cash inflowsIntra-government transfers..................................................... — 89 — —Sales of goods and services.................................................. — — — 12Interest received.................................................................... — 661 — 821Other receipts........................................................................ 255 598 225 762 295 518 241 605


State government

Appropriation.......................................................................... 11 175 9 554 8 545 8 644Other receipts........................................................................ — 2 — 5


Net cash provided by (+)/used in (-) operating activities — -368 — -4 979


Cash inflowsCash transfers from restructuring activities............................ — — — 36 540

Cash generated from financing activities — — — 36 540

Net cash provided by (+)/used in (-) financing activities — — — 36 540

Net increase (+)/decrease (-) in cash equivalents — -368 — 31 561



State Development





Expenses


• improved targeting of training across the vocational education and training sector and greater efficiencies in line with the TAFE SA forward strategy ($24.1 million)

• a reduction in expenditure in 2016–17 on the Plan for Accelerating Exploration (PACE) Copper program ($6.0 million)

• the upgrade of infrastructure in 2015–16 at regional arts theatres by Country Arts SA ($4.3 million)

partially offset by

• increase in the Economic Investment Fund in 2016–17 ($11.0 million)

• commencement of initiatives under the Northern Economic Plan ($6.5 million)

• commencement of a series of innovation programs, including the South Australian Early Commercialisation Fund, Gig City and investment in the Future Industries Institute ($6.2 million)

• increased expenditure in 2016–17 associated with Our Jobs Plan ($5.8 million)

• provision of a grant to the City of Mount Gambier to enable the purchase of the Riddoch Art Gallery collection from Country Arts SA ($2.1 million)

• additional support for Defence Industry Attraction under the Economic Investment Fund ($2.0 million).

Income


• increased Commonwealth funding in 2016–17 under the National Partnership Agreement on Skills Reform ($10.1 million)

• a net loss on disposal in 2015–16 on the O'Halloran Hill and Marleston TAFE sites ($9.0 million)

• increased fee for service revenue in 2016–17 in line with the TAFE SA forward strategy ($8.3 million)

partially offset by

• cessation in 2015–16 of funding to the Art Gallery of South Australia from BHP Billiton for the TARNANTHI — Contemporary Aboriginal and Torres Strait Islander Arts Festival ($2.2 million)

• a once-off contribution in 2015–16 to the Economic Investment Fund from the Regional Development Fund ($1.4 million).

In addition there is a $644 million increase in investing/financing receipts paid to the Consolidated Account primarily associated with proceeds from the transfer of key TAFE SA campus assets to Renewal SA ($650 million).

State Development



The $602.0 million decrease in net assets is primarily due to:

• the transfer of key TAFE SA campus assets to Renewal SA ($650 million)

partially offset by

• an increase in non–current assets associated with the expanded investing program in 2016–17, predominantly associated with the Adelaide Festival Centre Precinct redevelopment and Brukunga Mine Site remediation ($41.1 million).


The movements in cash outflows and inflows are generally consistent with the changes discussed above under the statement of comprehensive income, with the exception of the movement in depreciation ($16.5 million).

Statement of comprehensive income — administered items

The $30.3 million increase in administered expenses is primarily due to higher budgeted payments to the Consolidated Account for royalties from minerals and petroleum productions ($29.7 million).

The $29.1 million increase in administered income is primarily due to an increase in royalties revenue from minerals and petroleum productions ($29.7 million).

Statement of financial position — administered items


Statement of cash flows — administered items

The movements in cash outflows and inflows are generally consistent with the changes discussed above under the statement of comprehensive income.

Additional information for administered items

Additional information on administered items is included in the following tables.

State Development


Additional information Office of the Small Business Commissioner


The Office of the Small Business Commissioner supports business through alternative dispute resolution processes and provision of information on government services. The Small Business Commissioner is responsible for the administration and provision of information on the Retail and Commercial Leases Act 1995 and the Building and Construction Industry Security of Payment Act 2009, while having certain statutory responsibilities under the Late Payment of Government Debts Act 2013 and the Work Health and Safety Act 2012.

2016–17 Budget

2015–16 Estimated


2014–15 Actual

$000 $000 $000 $000 Operating Expenses ..................................................... 1 861 1 820 1 757 2 068 Income(a) ....................................................................... 1 740 2 359 1 768 2 038

Net cost of sub-program 121 -539 -11 30 Investing expenses ....................................................... — 550 — —

Net cost of sub-program including investing 121 11 -11 30 FTEs as at 30 June (No.) 9 10 11 9

(a) The Office of the Small Business Commissioner receives appropriation through the Department of State Development’s Administered Items, which is shown as income in the table above.



The $0.7 million movement in net cost is primarily due to once-of funding in 2015–16 associated with investing expenditure to fit-out new premises for the Office of the Small Business Commissioner ($0.6 million).


The $0.5 million movement in net cost is primarily due to once-of funding associated with investing expenditure to fit-out new premises for the Office of the Small Business Commissioner ($0.6 million).


The $0.6 million movement in net cost is primarily due to once-of funding in 2015–16 associated with investing expenditure to fit-out new premises for the Office of the Small Business Commissioner ($0.6 million).

State Development


Additional information for administered items for the Department of State Development Statement of cash flows

2016–17 Budget

2015–16 Estimated


2014–15 Actual

$000 $000 $000 $000


Cash outflows

Employee benefit payments Parliamentary salaries and electorate expense allowances ....................................................................... 727 854 916 908

Grants and subsidies APY Lands — additional services ..................................... 1 341 1 037 373 1 228

Supplies and services APY Lands — additional services ..................................... — — 94 27 Aboriginal Communities — additional services ................. — 231 — 365 Commonwealth Essential Services capital works fund ..... — 887 — 126

Intra-government transfers APY Lands — additional services ..................................... 5 145 5 291 5 861 4 462 Small Business Commissioner.......................................... 1 542 2 164 1 301 1 686 Commonwealth Essential Services capital works fund ..... — — — 158

Other payments Receipts paid to Consolidated Account ............................ 251 538 221 855 289 734 240 651 South Australian Stolen Generations Reparation Scheme ............................................................................. 2 420 210 — — Native Title Agreement — royalty ..................................... 4 060 3 907 5 784 6 455


Cash inflows

Intra-government Transfers Bank of Tokyo Fund .......................................................... — 89 — —

Sales of Goods and Services Mintabie and private royalties ........................................... — — — 12

Interest received APY Lands — additional services ..................................... — 320 — 396 Aboriginal Communities — additional services ................. — 301 — 368 Commonwealth Essential Services capital works fund ..... — 40 — 57

Other receipts Mining royalties ................................................................. 251 538 221 855 289 734 235 150 Native Title Agreement — royalty ..................................... 4 059 3 907 5 784 6 455


State Development


2016–17 Budget

2015–16 Estimated


2014–15 Actual

$000 $000 $000 $000

State government

Appropriation Parliamentary salaries and electorate expense allowances ........................................................................ 727 854 916 789 APY Lands — additional services ..................................... 6 486 6 328 6 328 6 174 Small Business Commissioner.......................................... 1 542 2 162 1 301 1 681 South Australian Stolen Generations Reparation Scheme ............................................................................. 2 420 210 — —

Other receipts Small Business Commissioner.......................................... — 2 — 5


Net cash provided by (+)/used in (-) operating activities — -368 — -4 979 Financing activities

Cash inflows

Proceeds from restructuring activities Aboriginal Affairs and Reconciliation Administered Funds ................................................................................

— — — 16 568

APY Lands ........................................................................ — — — 19 972

Cash generated from financing activities — — — 36 540

Net cash provided by (+)/used in (-) financing activities — — — 36 540

Net increase (+)/decrease (-) in cash equivalents — -368 — 31 561



State Development


State Development


Agency: South Australian Tourism Commission

Minister for Tourism


Tourism


Contents

Objective ........................................................................................................................................ 138 Ministerial responsibilities .............................................................................................................. 138 Workforce summary ...................................................................................................................... 138 Program net cost of services summary ......................................................................................... 138 Investing expenditure summary .................................................................................................... 139 Program 1: Tourism Development ............................................................................................. 140 Program 2: Tourism Events ....................................................................................................... 144 Program 3: Tourism Marketing................................................................................................... 147 Financial statements ..................................................................................................................... 151 Summary of major variations......................................................................................................... 154

Tourism


Objective

The South Australian Tourism Commission (SATC) markets South Australia as a holiday destination nationally and internationally and builds the state’s events calendar by securing, developing and expanding major events and festivals to grow the visitor economy and create jobs for the state. The SATC is working towards achieving the state’s tourism expenditure potential of $8 billion by 2020.



The Hon. LWK Bignell Minister for Tourism

1. Tourism Development 1.1 Destination Development 1.2 Strategy and Policy

2. Tourism Events Nil

3. Tourism Marketing 3.1 Domestic Marketing 3.2 International and Trade

Marketing

Statutes


Workforce summary

FTEs as at 30 June

Agency 2016–17

Budget(a)

2015–16 Estimated

Result(a) 2014–15 Actual(b)

South Australian Tourism Commission ........................................... 120.7 126.2 101.5

Total 120.7 126.2 101.5





2016–17 Budget

2015–16 Estimated


2014–15 Actual

Program $000 $000 $000 $000

1. Tourism Development ......................................... 8 096 9 127 9 939 6 654

2. Tourism Events ................................................... 34 202 22 549 20 471 18 113

3. Tourism Marketing .............................................. 38 073 38 567 38 252 27 608

Total 80 371 70 243 68 662 52 375

Tourism



The 2016–17 investment program is $636 000.

This program represents minor information technology and other equipment works.

Estimated

completion

Total project

cost $000 2016–17 Budget

2015–16 Estimated


Investments Quarter $000 $000 $000

Major projects Pageant and Events Warehouse

Jun 2016 487 — 487 —

Total major projects 487 — 487 —

Annual program Capital works and equipment n.a. n.a. 636(a) 483(a) 133

Total annual programs 636 483 133

Total investing expenditure 636 970 133

(a) The annual program of the former South Australian Motor Sport Board ($499 000 in 2016–17 and $350 000 in 2015–16) transferred to SATC on 1 July 2015.

Tourism


Program 1: Tourism Development


To build tourism opportunity by improving visitor access into and around the state and by providing advice to the industry in terms of research, policy and planning.

Sub-programs

1.1 Destination Development

1.2 Strategy and Policy


2016–17 Budget

2015–16 Estimated


2014–15 Actual

$000 $000 $000 $000

Expenses Employee benefit expenses.......................................... 1 904 1 938 1 433 1 390 Supplies and services ................................................... 1 354 1 552 3 674 1 513 Depreciation and amortisation expenses ...................... 62 60 46 44 Grants and subsidies .................................................... 4 979 5 779 4 840 3 776 Other expenses ............................................................ 18 19 14 11

Total expenses 8 317 9 348 10 007 6 734

Income Sales of goods and services ......................................... 221 221 68 80



FTEs as at 30 June (No.) 12.6 13.9 15.6 11.7

Tourism


Sub-program 1.1: Destination Development


To facilitate the building of tourism capability in South Australia in terms of increasing industry capability, promoting tourism infrastructure investment and improving ease of access to and within the state, including facilitating cruise ship arrivals.

2016–17 Budget

2015–16 Estimated


2014–15 Actual

$000 $000 $000 $000 Expenses ...................................................................... 2 794 3 467 3 731 3 431 Income .......................................................................... 221 221 61 79


FTEs as at 30 June (No.) 8.3 9.3 10.4 8.7




• the conclusion of contractual arrangements with providers of air access to South Australia ($0.5 million).






• In cooperation with Adelaide Airport Limited, secured Qatar Airways to launch direct daily services to Adelaide from Doha. Qatar Airways connects South Australia to more than 150 international destinations around the world, including more than 30 destinations in Europe.

• A memorandum of understanding was signed between the Government of South Australia and China Southern Airlines, cementing a commitment towards direct flights between Guangzhou and Adelaide. SATC also worked closely with Singapore Airlines to secure three additional flights per week to Adelaide during July and August 2016.

• Hosted 37 cruise ship visits to South Australian ports, with a total capacity of up to 89 468 passengers and crew. This included 23 cruise ship visits to the Port Adelaide Passenger Terminal, ten visits to Penneshaw, Kangaroo Island and four visits to Port Lincoln.

• Provided assistance to existing South Australian tourism operators that have international appeal to increase their capabilities through advice, educational tools and relationships with trade distribution partners. As a result of this activity, 13 new international products entered the market.

• A China capability strategy for the South Australian visitor economy was delivered to ensure the needs of the growing Chinese visitor market was realised. Practical workshops and 22 consultation sessions with operators were delivered.

Tourism


• Provided ongoing support to regional tourism organisations including reviewing the implementation of each regions’ three-year destination action plan, funding to each region for local contact person support services, funding towards accreditation of the state’s visitor information centres and co-funding the annual convention of the Australian Regional Tourism Network.

Targets 2016–17

• Continue to work with and support international and domestic airlines to encourage them to increase direct flights to Adelaide and ensure that current capacity is maintained.

• Focus on advocating a compelling case for China Southern Airlines to initiate a new direct route to Adelaide.

• Host 52 cruise ship visits to South Australian ports with a total capacity of up to 111 454 passengers. This will consist of 28 visits to the Port Adelaide Passenger Terminal with four overnight stays, 19 visits to Kangaroo Island’s Penneshaw and five visits to Port Lincoln.

• Focus on working with existing tourism operators whose products have international appeal, to build their capability and ensure South Australia has a broad range of appealing and saleable product. The target is for 10 new international products to be sold and distributed around the world.

• Implement actions identified in the China capability strategy to increase the ability of stakeholders associated with the visitor economy to meet the expectations of Chinese visitors and to enhance engagement with Chinese trade partners.

• Continue implementation of the destination action plans with the state’s 11 regional tourism organisations.

Sub-program 1.2: Strategy and Policy


To develop and influence strategies and policies to support government economic and tourism objectives, provide market research that underpins those policies and provide valuable robust data for the tourism industry to help plan for future growth.

2016–17 Budget

2015–16 Estimated


2014–15 Actual

$000 $000 $000 $000 Expenses ...................................................................... 5 523 5 881 6 276 3 303 Income .......................................................................... — — 7 1


FTEs as at 30 June (No.) 4.3 4.6 5.2 3.0






• operational efficiencies achieved in 2015–16 ($0.3 million).

Tourism




• additional investment in the Convention Bid Fund to secure national and international business conventions at the newly expanded Adelaide Convention Centre ($2.5 million).


• In collaboration with the Department of Environment, Water and Natural Resources (DEWNR), completed and launched a nature based tourism strategy, which outlines the Government of South Australia’s vision and actions to make South Australia a world leader in nature-based tourism, while supporting the ongoing conservation of natural and cultural heritage. The strategy is targeted to inject $350 million a year into the state’s economy and create 1000 new jobs by 2020.

• Secured Commonwealth Government funding (almost $1 million) under the national Tourism Demand Driver Infrastructure program to enhance South Australian tourism experiences.

• Represented and supported the tourism industry in a wide range of government policy settings, including the provision of ten-year licences for shark cage dive operators and the creation of the Mount Lofty Ranges as an international mountain bike destination.

• Collaborated across government to undertake specific projects, such as development of a world standard multi-day walk on Kangaroo Island, the Request for Information (RFI) for Leigh Creek Futures and provision of public access to certain SA Water reservoirs for recreational fishing.

• Negotiated a new three year funding agreement with the South Australian Tourism Industry Council. The agreement will support South Australian tourism operators in the submission process to assist improved performance at the national tourism awards.

• Funding from the Convention Bid Fund has enabled the state to successfully secure 37 conventions, which will attract more than 40 000 delegates, more than 186 000 bed nights, and generate an estimated economic value of more than $188 million.

Targets 2016–17

• Work with DEWNR to implement the nature based tourism strategy and action plan.

• Identify projects and secure agreement with the Commonwealth Government for the allocation of 2016–17 Commonwealth funding under the Tourism Demand Driver Infrastructure program.

• Contribute to the success of the tourism industry by identifying where planning, policy and project objectives of government agencies and industry can be utilised, influenced or improved for the benefit of South Australian tourism.

• Collaborate with the South Australian Tourism Industry Council to implement a revised South Australian tourism awards process and ceremony, to support South Australian award winners’ recognition at the national tourism awards.

• Engage in cooperative international research with Tourism Australia as part of a consumer demand project in 11 countries to identify the core drivers of tourism appeal for South Australia.

• Attract 78 000 conference delegates to the Adelaide Convention Centre, generating 312 000 bed nights.

Tourism


Program 2: Tourism Events


To strategically build and promote the state’s event calendar by developing and attracting new events and managing and growing existing events.


2016–17

Budget(a)

2015–16 Estimated

Result(a) 2015–16 Budget

2014–15 Actual

$000 $000 $000 $000

Expenses Employee benefit expenses.......................................... 4 703 4 779 2 575 2 696 Supplies and services ................................................... 47 500 46 975 19 749 15 054 Depreciation and amortisation expenses ...................... 1 967 1 964 227 234 Grants and subsidies .................................................... 7 387 7 313 3 912 6 225 Other expenses ............................................................ 42 42 33 32

Total expenses 61 599 61 073 26 496 24 241

Income Intra-government transfers ........................................... — 11 967 182 255 Sales of goods and services ......................................... 27 397 26 357 5 843 5 873 Other Income…………………………………………...... — 200 — —

Total income 27 397 38 524 6 025 6 128


FTEs as at 30 June (No.) 49.9 50.7 28.6 28.0

(a) The functions of the South Australian Motor Sport Board transferred to SATC on 1 July 2015, and are included in this program.



The $11.7 million increase in net cost is primarily due to:

• the transfer of the functions of the South Australian Motor Sport Board (SAMSB) to the South Australian Tourism Commission (SATC) in 2015–16 and associated revised funding flows ($11.8 million).



• additional expenditure associated with staging the Clipsal 500 Adelaide event following the transfer of the functions of SAMSB to SATC from 2015–16 ($33.7 million).


• additional income associated with staging the Clipsal 500 Adelaide event following the transfer of the functions of SAMSB to SATC from 2015–16 ($32.2 million)

Tourism




• additional expenditure associated with staging the Clipsal 500 Adelaide event following the transfer of the functions of the SAMSB to SATC from 2015–16 ($33.7 million)

• additional investment in the Events Bid Fund from 2015–16 to secure additional major events for the state ($5.0 million)

• additional investment to further promote and grow the Santos Tour Down Under which will support festival growth and additional community events ($1.5 million)

• increased expenditure to engage with the local fashion and creative industries, to grow the existing Adelaide Fashion Festival to a significant event, with a focus on Asia ($0.5 million)

• additional expenditure associated with annualising the Tasting Australia event in 2015–16 ($1.0 million)

partially offset by

• once-off expenditure in 2014–15 on events ($3.6 million)

• a decrease in expenditure associated with overhead costs for managed events ($0.5 million).


• additional income associated with staging the Clipsal 500 Adelaide event following the transfer of the functions of the SAMSB to SATC from 2015–16 ($32.2 million)


• The 2016 Santos Tour Down Under attracted 39 000 event specific visitors, injecting $49.6 million into the South Australian economy and creating 613 full-time equivalent jobs as well as generating $258 million of media coverage. The Santos Women’s Tour took place in conjunction with the 2016 Santos Tour Down Under, which was the first time the women’s event had been classified as a Union Cycliste Internationale (UCI) 2.2 ranked event.

• The Adelaide Fashion Festival was successfully re-launched showcasing South Australia and its fashion and design industries as well as optimising opportunities to strengthen cultural links with China and advance South Australian business prospects.

• Tasting Australia, presented by Thomas Foods, showcased South Australia’s produce and producers, with more than 200 eating and drinking events and experiences held across the State. Town Square, the free event hub in Victoria Square, brought the regions to the city with seasonal regional produce on offer daily and included cooking demonstrations and a series of panel discussions.

• Sponsored and staged a range of international and national events secured through the Events Bid Fund, including Liverpool Football Club versus Adelaide United, Australian Swimming Championships (Rio Olympic Qualifier), Women’s Australian Open Golf, Adelaide Motorsport Festival and Southern University Games. Other events sponsored outside of the Events Bid Fund included the World Duathlon Championships, Australian Masters Games, World Dragonboat Championships and WOMAdelaide as well as events supported through the Regional Events and Festivals Program.

• Six major events were secured which are forecast to inject $22 million into the South Australian economy. These events include the Women’s Australian Open Golf — 2016 to 2018, Socceroos versus Tajikistan World Cup Qualifier, Golden Oldies Football Carnival, 2017 Pacific School Games and an Australia versus England Netball Test Match.

Tourism


• The 2016 Clipsal 500 Adelaide attracted 263 500 patrons across the four day event, making it the largest ticketed domestic motorsport event in Australia, and delivering significant economic benefits, jobs and exposure in strategic markets both nationally and internationally.

• The 2015 Bridgestone World Solar Challenge attracted 46 teams from 25 countries, many of whom represent the world’s leading academic institutions. The event also generated significant international media interest, with international media following their local teams and independent media producing vision for broadcast.

Targets 2016–17

• Strategically utilise the Events Bid Fund to secure events aligned with South Australia’s strengths, such as arts and culture, live music, food and wine, sporting and mass participation events to stimulate national and international visitation and exposure.

• To continue to support, grow and market existing events and festivals that deliver strong economic outcomes, create vibrancy, utilise existing or upgraded infrastructure, profile South Australia and provide visitors with more reasons to visit South Australia.

• To continue to grow the Santos Tour Down Under and the Credit Union Christmas Pageant to deliver strong economic, promotional and community benefits for all South Australians. To cement Tasting Australia and the Adelaide Fashion Festival as sustainable annual events.

• Maximise the economic, tourism and community benefits of hosting major national international events in South Australia such as the Women’s Australian Open Golf.

• Provide leadership to the South Australian events and festivals industry, including conducting workshops in Adelaide and regional South Australia with the aim of upskilling the industry and providing networking and collaboration opportunities.

• Continue to innovate and secure new on and off track motor sport categories and event attractions.

• Develop the format and content of the Clipsal 500 Adelaide event to enhance the experience of patrons and attract the next generation of motor sport fans and families.

Tourism


Program 3: Tourism Marketing


To develop and implement marketing activities and campaigns to increase the number of international and national visitors to and within South Australia.

Sub-programs

3.1 Domestic Marketing

3.2 International and Trade Marketing


2016–17 Budget

2015–16 Estimated


2014–15 Actual

$000 $000 $000 $000

Expenses Employee benefit expenses.......................................... 4 556 4 723 5 581 6 124 Supplies and services ................................................... 32 295 32 632 31 713 21 826 Depreciation and amortisation expenses ...................... 304 294 221 219 Grants and subsidies .................................................... 1 094 1 093 1 401 1 051 Other expenses ............................................................ 90 91 70 65

Total expenses 38 339 38 833 38 986 29 285

Income Sales of goods and services ......................................... 266 266 734 1 602 Intra-government transfers ........................................... — — — 75

Total income 266 266 734 1 677


FTEs as at 30 June (No.) 58.2 61.6 62.8 61.8

Tourism


Sub-program 3.1: Domestic Marketing


To develop and implement national marketing campaigns to grow awareness of the state’s tourism experiences and as a result increase visitation to and within South Australia.

2016–17 Budget

2015–16 Estimated


2014–15 Actual

$000 $000 $000 $000 Expenses ...................................................................... 21 418 21 721 21 076 18 337 Income .......................................................................... 70 70 86 346


FTEs as at 30 June (No.) 40.0 42.6 40.4 45.0






• an increase in expenditure associated with marketing activity ($0.6 million), including the promotion of various matches held at Adelaide Oval in 2015–16.



• additional investment in domestic marketing campaigns to promote Adelaide and regional tourism experiences and products to the Australian market ($3.0 million).


• Promoted Adelaide and Greater Adelaide, including the Barossa, Fleurieu Peninsula and Adelaide Hills, through the Adelaide Let Yourself Go marketing campaign in Sydney, Melbourne and Brisbane. Campaign elements included television, cinema, online and outdoor activity.

• The Best Backyard campaign encouraged South Australians to take a holiday and short-breaks in their own state by individually promoting South Australia’s eleven tourism regions via television, cinema and online marketing activity.

• Sponsored the broadcast of The Project and The Today Show from Adelaide, promoting the state’s tourism regions, products, experiences and events. This was the first time The Project broadcast live from another location, with a viewership of 3.58 million. SATC also sponsored the Hit107 radio breakfast crew for a weeklong trip down the Murray River, promoting the region and its operators.

• Partnered with Fairfax Media in an industry first program, to create more than 200 new pieces of content, such as articles, videos and infographics distributed through national websites and social media platforms promoting South Australian tourism experiences and events. To date, this promotional activity has resulted in 1.4 million page views of South Australian content.

Tourism


• Undertook cooperative marketing campaigns with industry partners, including Virgin Australia in a major campaign promoting and selling South Australian holidays. Campaign elements included placing content in Virgin Australia’s inflight entertainment system and inflight magazine, and outdoor, digital, and airport advertising in key national markets.

Targets 2016–17

• Promote Adelaide and South Australia’s key regional experiences in key markets nationally through a new global campaign to be featured on television and online.

• Continue to encourage intrastate travel by promoting all South Australian tourism regions, with a focus on showcasing unique experiences, events and the state’s six touring routes, in a new campaign to be featured on television and online.

• Secure additional national coverage across key media outlets, including leveraging sponsorship of local television programs as well as positioning South Australia as a must-see tourism destination through familiarisations and publicity initiatives.

• Partner with leading travel industry associates to conduct cooperative marketing campaigns in key interstate markets to drive further visitation to South Australia.

• Continue to implement the Regional Consumer Cooperative Marketing Fund, which provides funding to the eleven regional tourism bodies for consumer-based marketing activities. Funding is matched by the region, essentially doubling the marketing spend that would normally be undertaken.

• Enhance SATC’s consumer website <southaustralia.com> through the addition of new assets, including campaign landing pages, TripAdvisor reviews, consolidation of international language pages and personalisation of content based on specific user behaviours.

Sub-program 3.2: International and Trade Marketing


Position South Australia as a compelling part of an Australian journey for overseas visitors by working cooperatively with distribution partners and implementing marketing campaigns to ensure consumers are aware of, and visit, South Australia as a holiday destination.

2016–17 Budget

2015–16 Estimated


2014–15 Actual

$000 $000 $000 $000 Expenses ...................................................................... 16 921 17 112 17 910 10 948 Income .......................................................................... 196 196 648 1 331


FTEs as at 30 June (No.) 18.2 19.0 22.4 16.8






Tourism




• additional investment in international marketing with a focus on growing tourism opportunities from the emerging international markets of China, India and South East Asia (Malaysia and Singapore) and the traditional markets of the United States, United Kingdom and New Zealand ($7.0 million).


• Conducted more than 90 targeted marketing campaigns in key international markets increasing awareness and consumer demand for South Australia as a holiday destination.

• Undertook campaigns in Malaysia, Singapore and India directly targeting the consumer, showcasing South Australia’s key tourism attributes, building destination awareness, growing visitation and expenditure from these key markets. The campaigns were digitally focussed, using social media, banner and display advertising as well as featuring an online video.

• Conducted a campaign in the United Kingdom, Germany, France and Italy to promote Qatar Airways’ new daily flights to Adelaide positioning South Australia as an ideal destination to start an Australia holiday and increasing awareness and sales of the direct flights. The campaign centrepiece was a 60-second online video and also included search engine marketing, display-advertising and social media.

• Running Man, the number one prime-time Chinese variety program, filmed an episode in South Australia featuring Adelaide and Barossa regions and was viewed on television by more than 250 million people, with an additional 1.9 million views on YouTube in the first two weeks, from outside China. SATC partnered with Tourism Australia to leverage this coverage through a co-operative marketing campaign featuring print, outdoor and digital elements.

• In New Zealand, investigated a brand campaign aimed at creating awareness and demand for South Australian holidays, including developing a purpose built digital website to engage consumers by designing their own South Australia holiday. Key travel trade partners were integrated into the campaign, offering consumers special deals for South Australia products and experiences.

• In the United States of America, partnered with National Geographic Traveller to undertake a content campaign comprising stories, images and videos which were placed on a campaign specific South Australia website. Travel trade partners leveraged the interest generated for South Australia by integrating special deals and packages to the destination. Within the first two weeks of the campaign there were 58 000 visits to the website as well as high levels of engagement on social media.

Targets 2016–17

• Undertake a range of cooperative marketing activities with travel trade partners and airlines in key international markets to reach wider audiences and grow consumer demand for South Australia.

• Undertake a global campaign using a new, purpose shot state advertising asset showcasing the very best of South Australia. The asset will be the platform for all marketing activities undertaken in key international markets through mass reaching media and will showcase South Australia’s experiences and destinations that have high appeal with targeted international audiences.

• Undertake marketing activities in the strategically important market of China, to continue the growth of visitors to South Australia. The focus in China will include the emerging partnership with China Southern Airlines, using the new state international advertisement campaign to enhance the prospect of direct flights, and subsequent visits and expenditure.

• Continue to participate in key targeted trade events held in Australia and overseas ensuring that South Australian products and experiences are represented where appropriate.

Tourism


South Australian Tourism CommissionStatement of comprehensive income

2016-17

Budget (a)

2015-16EstimatedResult (a)

2015-16Budget

2014-15

Actual$000 $000 $000 $000


Salaries, wages, annual and sick leave............................. 9 399 9 635 7 944 8 427Long service leave............................................................. 234 238 238 317Payroll tax.......................................................................... 470 485 442 478Superannuation.................................................................. 884 910 795 809Other.................................................................................. 176 172 170 179

Supplies and servicesGeneral supplies and services........................................... 81 149 81 019 55 136 38 356Consultancy expenses....................................................... — 140 — 37

Depreciation and amortisation.............................................. 2 333 2 318 494 497Grants and subsidies............................................................ 13 460 14 185 10 153 11 052Other expenses..................................................................... 150 152 117 108

Total expenses 108 255 109 254 75 489 60 260

IncomeIntra-government transfers.................................................... — 11 967 182 330Sales of goods and services................................................. 27 884 26 844 6 645 7 268Interest revenues.................................................................. — 200 — —Net gain or loss on disposal of assets.................................. — — — 1Other income........................................................................ — — — 286

Total income 27 884 39 011 6 827 7 885





Net Result — 1 073 345 2 108

Other comprehensive incomeChanges in property, plant and equipment assetrevaluation surplus............................................................... — — — 146

Total comprehensive result — 1 073 345 2 254

(a) The functions of the South Australian Motor Sport Board were transferred to the SA Tourism Commission on 1 July 2015.

Tourism


South Australian Tourism CommissionStatement of financial position

2016-17

Budget (a)


2015-16Budget

2014-15

Actual$000 $000 $000 $000

AssetsCurrent assetsCash and cash equivalents................................................... 13 874 12 071 3 594 4 410Receivables.......................................................................... 1 796 1 913 689 947Other current assets............................................................. 102 102 10 102


Non current assets

Plant and equipment............................................................. 12 039 13 736 1 334 1 869


Total assets 27 811 27 822 5 627 7 328


Salaries and wages........................................................... 237 213 104 162Annual leave..................................................................... 685 696 581 598Long service leave............................................................ 368 368 289 259Other................................................................................. 31 31 19 31

Short-term provisions............................................................ 13 13 12 11Other current liabilities.......................................................... 2 846 2 846 155 154



Long service leave............................................................ 1 583 1 583 1 242 1 530Long-term provisions............................................................ 24 24 52 25Other non-current liabilities................................................... 501 525 475 321



Net assets 17 432 17 432 -164 1 400

Equity

Contributed capital................................................................ 64 64 64 64Retained earnings................................................................. 13 619 13 619 -228 1 190Asset revaluation reserve..................................................... 2 649 2 649 — 146Other reserves...................................................................... 1 100 1 100 — —

Total equity 17 432 17 432 -164 1 400

Balances as at 30 June end of period.(a) The functions of the South Australian Motor Sport Board were transferred to the SA Tourism Commission on 1 July 2015.

Tourism


South Australian Tourism CommissionStatement of cash flows

2016-17

Budget (a)


2015-16Budget

2014-15

Actual$000 $000 $000 $000

Operating activitiesCash outflowsEmployee benefit payments................................................... 11 150 11 398 9 556 9 914Payments for supplies and services...................................... 81 173 80 824 55 136 41 657Grants and subsidies............................................................. 13 460 14 185 10 153 11 052Other payments..................................................................... 150 268 117 176


Cash inflowsIntra-government transfers..................................................... — 11 967 182 330Sales of goods and services.................................................. 27 884 26 844 6 645 8 083Interest received.................................................................... — 200 — —GST received......................................................................... — — — 3 126Other receipts........................................................................ 117 174 — 60


State government

Appropriation.......................................................................... 80 371 69 495 69 007 53 335Other receipts........................................................................ — 1 821 — 1 148


Net cash provided by (+)/used in (-) operating activities 2 439 3 826 872 3 283


Cash outflowsPurchase of property, plant and equipment........................... 636 970 133 161

Cash used in investing activities 636 970 133 161

Cash inflowsProceeds from sale of property, plant and equipment........... — — — 1

Cash generated from investing activities — — — 1

Net cash provided by (+)/used in (-) investing activities -636 -970 -133 -160

Net increase (+)/decrease (-) in cash equivalents 1 803 2 856 739 3 123



(a) The functions of the South Australian Motor Sport Board were transferred to the SA Tourism Commission on 1 July 2015.

Tourism





Expenses


• procurement and indexation savings in 2016–17 ($1.0 million).

Income


• the transfer of the functions of SAMSB to SATC in 2015–16 and associated revised funding flows ($11.8 million).




The movements in cash outflows and inflows are generally consistent with the changes discussed above under the statement of comprehensive income and the statement of financial position.

Tourism


Agency: Department of Treasury and Finance

Minister for Consumer and Business Services Treasurer Minister for Finance Minister for Veterans’ Affairs Minister for Transport and Infrastructure


Treasury and Finance


Contents

Objective ........................................................................................................................................ 158 Ministerial responsibilities .............................................................................................................. 158 Ministerial office resources ............................................................................................................ 158 Workforce summary ...................................................................................................................... 159 Program net cost of services summary ......................................................................................... 159 Investing expenditure summary .................................................................................................... 160 Program 1: Gambling Policy ...................................................................................................... 161 Program 2: Accountability for Public Sector Resources ............................................................ 163 Program 3: Treasury Services ................................................................................................... 165 Program 4: Financial Services Provision ................................................................................... 167 Program 5: Veterans’ Affairs ...................................................................................................... 174 Program 6: Office of the Valuer-General ................................................................................... 177 Financial statements ..................................................................................................................... 179 Summary of major variations......................................................................................................... 194



Objective

To ensure that the South Australian public sector is accountable in both policy and financial terms to the government of the day. To provide economic and financial services to, and on behalf of, the Government of South Australia.



The Hon. JR Rau Minister for Consumer and Business Services

1. Gambling Policy Nil

The Hon. T Koutsantonis Treasurer Minister for Finance

2. Accountability for Public Sector Resources

Nil

3. Treasury Services Nil

4. Financial Services Provision 4.1 Revenue Collection and Management

4.2 Insurance and Fleet Services 4.3 Superannuation Services 4.4 Procurement Policy and

Governance

The Hon. MLJ Hamilton-Smith Minister for Veterans’ Affairs

5. Veterans’ Affairs Nil

The Hon. SC Mullighan Minister for Transport and Infrastructure

6. Office of the Valuer-General Nil

Administered items

In addition to the above responsibilities, the agency administers the following items on behalf of the Treasurer:

• Assets and liabilities held on behalf of the state by the Treasurer

• Consolidated Account items

• Special Act salaries for the Valuer-General

• Special deposit accounts.

Statutes



2016–17 Budget

Cost of provision

Minister $000 FTE

The Hon. T Koutsantonis ........................................................................ 2 086 13.0



Workforce summary

FTEs as at 30 June

Agency 2016–17

Budget(a)(d)

2015–16 Estimated Result(a)(c)

2014–15 Actual(b)

Department of Treasury and Finance ................................................. 696.0 694.2 608.4

Administered items for the Department of Treasury and Finance....... 216.7 216.7 200.5

Total 912.7 910.9 808.9

Less: FTEs transferred in: Office of the Valuer-General on 1 July 2016 ................................. — 81.0 73.4

Equals: .............................................................................................. 912.7 829.9 735.5



(c) Includes an increase of 49.0 FTEs following the transfer of the corporate services ICT function from the Department of the Premier and Cabinet to the Department of Treasury and Finance in 2015–16.

(d) Includes an increase of 81.0 FTEs following the transfer of the Office of the Valuer-General from the Department of Planning, Transport and Infrastructure to the Department of Treasury and Finance on 1 July 2016.



2016–17 Budget

2015–16 Estimated


2014–15 Actual

Program $000 $000 $000 $000

1. Gambling Policy .................................................. 452 436 588 219

2. Accountability for Public Sector Resources ......... 19 654 31 246 16 210 21 256

3. Treasury Services ............................................... 750 — — 145

4. Financial Services Provision ............................... 30 318 33 206 34 908 33 885

5. Veterans’ Affairs .................................................. 1 328 5 812 4 808 1 067

6. Office of the Valuer-General ............................... -2 514 -5 373 -5 373 -5 622

Total 49 988 65 327 51 141 50 950 Reconciliation to agency net cost of providing services

Less: Net costs transferred in: Office of the Valuer-General from the Department of Planning, Transport and Infrastructure on 1 July 2016 ................................. —

-5 373

-5 373

-5 622

Equals: Net cost of providing services (as per agency statement of comprehensive income) 49 988 70 700 56 514 56 572




The 2016–17 investment program is $11.011 million.

This program provides for ongoing maintenance and improvement of systems and capabilities to deliver high quality services to government.

Estimated

completion

Total project


2015–16 Estimated



New projects Anzac Centenary Memorial Garden Walk ..................................................... Jun 2016 9 500(a) — 9 500 — Super SA ICT System Solution............. Dec 2017 12 567 7 169 3 729 —

Total new projects 22 067 7 169 13 229 — Existing projects Budget and monitoring system upgrade ................................................ Sep 2016 850 — 362 150 Taxation Revenue Management System (RISTEC) ................................. Sep 2015 34 726(b) — — 100

Total existing projects 35 576 — 362 250

Annual programs Minor capital works and equipment ...... n.a. n.a. 743 2 605 1 239 RevenueSA Information On-line system (RIO) ........................................ n.a. n.a. 3 099 3 514 127

Total annual programs 3 842 6 119 1 366

Total investing expenditure 57 643 11 011 19 710 1 616

(a) The Anzac Centenary Memorial Garden Walk is a joint state, Commonwealth and local government project for the construction of the Anzac Centenary Memorial Walk along Kintore Avenue in Adelaide. The project was funded through the Commonwealth's Anzac Centenary Public Fund ($5.0 million), the Government of South Australia ($3.0 million) and the Adelaide City Council ($1.5 million).

(b) The total project cost for the Taxation Revenue Management System (RISTEC) project is $55.8 million, comprising $34.7 million investing expenditure and $21.1 million operating expenditure. These costs include funding for updates to the system to incorporate changes to taxation arrangements, for example Housing Construction Grant and Stamp Duty off-the-plan. The project was completed on 6 July 2015.



Program 1: Gambling Policy


The Department of Treasury and Finance provides policy advice to the government on economic, social and regulatory issues associated with gambling.

Program summary ― expenses, income and FTEs

2016–17 Budget

2015–16 Estimated

Result 2015–16

Budget(a) 2014–15

Actual

$000 $000 $000 $000

Expenses Employee benefit expenses.......................................... 260 271 243 131 Supplies and services ................................................... 170 143 206 34 Depreciation and amortisation expenses ...................... 5 5 15 3 Intra-government transfers ........................................... 6 6 106 86 Other expenses ............................................................ 14 14 39 —

Total expenses 455 439 609 254

Income Sales of goods and services ......................................... 3 3 21 31 Other Income ................................................................ — — — 4


Net cost of providing services 452 436 588 219

FTEs as at 30 June (No.) 2.4 2.4 2.5 2.5

(a) Includes a budget reallocation to Program 2: Accountability for Public Sector Resources.









• Commenced amendments contained in the Statutes Amendment (Gambling Measures) Act 2015, which offers improvements to the regulatory framework for gaming.

• Implemented regulation for trade promotion tournament and general poker tournament under the Lottery and Gaming Act 1936.

• Progressed changes to the Collections for Charitable Purposes Act 1939 to reduce regulatory duplication for charities.

• Led the inter-jurisdictional on-line wagering taxation working group.



Targets 2016–17

• Develop and progress amendments to the Authorised Betting Operations Act 2000 to assist in reducing red tape for the wagering sector.

• Develop regulatory and tax arrangements for authorised betting operations, including place of consumption taxation.

• Develop and consult on options to extend the existing contribution and integrity agreement provisions for racing to sports betting on South Australian sporting events, consistent with the government’s commitment to the National Policy on Match-Fixing in Sport.



Program 2: Accountability for Public Sector Resources


Treasury and Finance has the role of ensuring accountability for public sector resources through providing policy, economic and financial advice to the government and coordinating resource allocations for government programs and priorities at the whole of government level.

Treasury and Finance provides support to the government through delivering a range of key projects aimed at maximising commercial outcomes for government. These projects progress policy reforms and commercial initiatives for the economic benefit of the state.


2016–17

Budget(a)

2015–16 Estimated

Result(a) 2015–16

Budget(a)(b) 2014–15 Actual(a)

$000 $000 $000 $000

Expenses Employee benefit expenses......................................... 15 269 18 881 11 207 14 892 Supplies and services .................................................. 4 268 12 218 3 585 6 836 Depreciation and amortisation expenses ..................... 370 361 323 132 Grants and subsidies ................................................... 29 30 30 29 Intra-government transfers .......................................... 624 930 2 267 3 119 Other expenses ........................................................... 976 1 075 912 —

Total expenses 21 536 33 495 18 324 25 008 Income Intra-government transfers .......................................... 264 159 159 272 Sales of goods and services ........................................ 555 578 1 256 1 675 Other income ............................................................... 1 063 1 512 699 1 805

Total income 1 882 2 249 2 114 3 752 Net cost of providing services 19 654 31 246 16 210 21 256 FTEs as at 30 June (No.) 125.2 143.0 98.1 113.4

(a) Includes a budget reallocation from the 2015–16 Budget Sub-program 4.5: Asset Licensing and Divestment.

(b) Includes a budget reallocation from Program 1: Gambling Policy.



The decrease in expenditure is primarily related to a reduction in expenditure for the Compulsory Third Party Insurance Market Reform project ($10.9 million).


The increase in expenditure is primarily related to:

• additional expenditure for the Compulsory Third Party Insurance Market Reform project in 2015–16 ($10.9 million)

• additional expenditure relating to the divestment of commercial properties in 2015–16 ($1.6 million)

• the carryover of funding from 2014–15 to 2015–16 relating to the Tax Reform Review project ($1.1 million)



• expenditure for the Land Services Group project in 2015–16 ($0.7 million).


The increase in expenditure is primarily related to:

• additional expenditure for the Compulsory Third Party Insurance Market Reform project in 2015–16 ($7.4 million)

• the carryover of funding from 2014–15 to 2015–16 relating to the divestment of commercial properties ($0.6 million).


• Produced and published the consolidated Government of South Australia financial statements for 2014–15, the 2015–16 Mid-Year Budget Review and prepared the 2016–17 Budget.

• Provided advice and analysis on proposals arising out of the Commonwealth Government’s White Papers on tax reform and the Federation.

• Analysed the National Disability Insurance Scheme transition bilateral agreement and provided advice on its impacts.

• Further progressed the divestment of the State Administration Centre Precinct in Adelaide, including the State Administration Centre, Education Building, 12 Victoria Place, Hemmings Place, 30 Wakefield Street and 24 Flinders Street.

• Progressed the Compulsory Third Party Insurance (CTPI) market reforms including the approval of four private insurers to enter the new private market and begin to write CTPI in South Australia from 1 July 2016.

• Developed the Compulsory Third Party Insurance Regulation Bill 2016, to establish an independent CTPI Regulator, which was passed by parliament in April 2016.

Targets 2016–17

• Support the development and implementation of a new competition and productivity enhancing reform agreement with the Commonwealth Government following the Harper Review.

• Produce the consolidated Government of South Australia financial statements for 2015–16, the 2016–17 MYBR and the 2017–18 Budget.

• Prepare for the implementation of the new Australian Government Finance Statistics standard, to support enhanced Australian Bureau of Statistics reporting.

• Provide assistance to agencies in the development of business cases that support key government priorities.

• Provide the government with information on the performance of agencies in achieving key government initiatives and priorities, including infrastructure programs.

• Achieve ‘go live’ of the new private CTPI market on 1 July 2016.

• Continue with the CTPI market reforms including working with the CTPI Regulator during the CTPI transitional period.

• Co-ordinate an across government review of redundant legislation and regulations and implement their repeal in support of South Australia’s economic priority, Best Place to do Business.



Program 3: Treasury Services


Management of the government’s financial assets and liabilities and provision of certainty of funding to the state.


2016–17 Budget

2015–16 Estimated


2014–15 Actual

$000 $000 $000 $000

Expenses Employee benefit expenses.......................................... 5 656 5 142 5 138 4 287 Supplies and services ................................................... 1 690 1 222 856 1 186 Depreciation and amortisation expenses ...................... — — 10 10 Intra-government transfers ........................................... — — 420 —

Total expenses 7 346 6 364 6 424 5 483

Income Sales of goods and services ......................................... 6 596 6 364 6 424 5 338

Total income 6 596 6 364 6 424 5 338 Net cost of providing services 750 — — 145 FTEs as at 30 June (No.) 41.1 41.0 40.6 40.8



The increase in expenditure is primarily due to administration costs for the South Australian Venture Capital Fund ($0.8 million).




The increase in expenditure is due to under expenditure in 2014–15.

The increase in revenue is primarily due to cost recovery of higher expenditure in 2015–16.


• Further extended the South Australian Government Financing Authority’s (SAFA) debt profile with increased investor penetration.

• Successfully implemented a new treasury management system.

• Successfully commenced bi-lateral Collateral Swap Agreements (CSAs) with main derivative counterparties.



Targets 2016–17

• Continue to broaden SAFA’s profile and penetration with investors.

• Implement a new liquidity policy in line with industry best practice.

• Establish the South Australian Venture Capital Fund which will provide venture capital to partner with private sector financiers to help build high growth companies in the state.


2016–17

Target

2015–16 Estimated

Result 2015–16

Target 2014–15

Actual

% of debt financing demands of the state and its instrumentalities met during year

100% 100% 100% 100%

% of clients satisfied with the SAFA services — assessed on timeliness, cost effectiveness and flexibility in service delivery

90% 90% 90%

100%



Program 4: Financial Services Provision


The Department of Treasury and Finance has the role of providing a range of whole of government services including liability management, collection of taxes, insurance, superannuation and fleet administration.

Sub-programs

4.1 Revenue Collection and Management

4.2 Insurance and Fleet Services

4.3 Superannuation Services

4.4 Procurement Policy and Governance


2016–17 Budget

2015–16 Estimated

Result 2015–16

Budget(a) 2014–15

Actual

$000 $000 $000 $000

Expenses Employee benefit expenses.......................................... 36 476 38 529 32 891 35 853 Supplies and services ................................................... 27 878 25 492 23 475 22 986 Depreciation and amortisation expenses ...................... 3 103 2 810 2 823 1 169 Grants and subsidies .................................................... — — — 3 Intra-government transfers ........................................... 2 831 2 504 7 392 7 164 Other expenses ............................................................ 1 867 1 762 1 862 —

Total expenses 72 155 71 097 68 443 67 175

Income Fees, fines and penalties .............................................. 321 285 285 424 Sales of goods and services ......................................... 41 516 37 606 33 250 32 426 Other income ................................................................ — — — 440

Total income 41 837 37 891 33 535 33 290


FTEs as at 30 June (No.) 422.5 419.8 376.2 371.9

(a) Includes a budget reallocation from the 2015–16 Budget Sub-program 4.5: Asset Licensing and Divestment.



Sub-program 4.1: Revenue Collection and Management


Management of taxation legislation, revenue systems and compliance systems to enable the government to raise revenue using its taxation powers and the provision of policy advice on taxation issues. Management of various grants and subsidy schemes for the government.

2016–17 Budget

2015–16 Estimated


2014–15 Actual

$000 $000 $000 $000 Expenses ...................................................................... 42 611 41 999 40 336 40 244 Income .......................................................................... 7 244 6 985 7 599 9 003


FTEs as at 30 June (No.) 231.8 229.4 202.1 196.1





The increase in expenditure is primarily due to the carryover of funding from 2014–15 to 2015–16 relating to the ongoing support of the state taxation revenue system ($1.8 million).

The decrease in revenue is primarily due to the reallocation of corporate overhead resources across programs ($0.6 million).


The increase in expenditure is primarily due to the carryover of funding from 2014–15 to 2015–16 relating to the ongoing support of the state taxation revenue system ($1.8 million).

The decrease in revenue is primarily due to the reallocation of corporate overhead resources across programs ($1.8 million).


• Implemented amendments to the Stamp Duties Act 1923, the Land Tax Act 1936 and the Taxation Administration Act 1996 which gave effect to the government’s tax reform measures.

• Release 2 of RevenueSA’s replacement state taxation system went live on 6 July 2015.

• Processed rebates for eligible employers under the small business payroll tax rebate scheme.

Targets 2016–17

• Implement the government’s tax changes announced in the 2015–16 MYBR and 2016–17 Budget relating to the job creation grant scheme.

• Review the current compliance risk management process, and publish and implement a new policy.




2016–17

Target

2015–16 Estimated

Result 2015–16

Target 2014–15

Actual

Revenue resulting from compliance initiatives $79.4m $77.3m(a) $79.7m $64.2m(b) % of revenue banked on day of receipt >97% 97.64% >97% 97.78% Cost for collection of $100 tax (on a cash basis) <65 cents 54 cents <75cents 55 cents

(a) The 2015–16 Estimated Result consists of a 13 month reporting period due to the deployment of RevenueSA’s replacement state taxation system.

(b) The 2014–15 Actual consists of an 11 month reporting period due to RevenueSA’s replacement state taxation system.

Activity indicators

2016–17

Projection

2015–16 Estimated

Result 2015–16


Actual

Taxation revenue collected by RevenueSA $3.6bn $3.8bn $3.8bn $3.6bn

Sub-program 4.2: Insurance and Fleet Services


The objective of this sub-program includes the provision of:

• insurance cover to government agencies through the insurance and reinsurance of government risks

• advice to the government on issues relating to the insurance and management of those risks

• fleet management services to agencies and vehicle disposal services to government.

2016–17 Budget

2015–16 Estimated


2014–15 Actual

$000 $000 $000 $000 Expenses ...................................................................... 7 570 7 304 7 474 6 902 Income .......................................................................... 7 570 7 304 7 474 6 900

Net cost of sub-program — — — 2

FTEs as at 30 June (No.) 45.2 45.2 42.7 37.4











• Renewed the government’s reinsurance program.

• Purchased Network Security and Privacy (Cyber) insurance and provided broader cover to government agencies in respect of these risks.

• Terrorism exclusion removed by a number of insurers on liability reinsurance placement resulting in significant cover now being provided at no additional cost.

• Low emission vehicle strategy approved.

• Managed the government’s fleet management and vehicle disposal contracts to enable effective and efficient outcomes for the government’s vehicle fleet.

Targets 2016–17

• Undertake catastrophe modelling to determine the state’s potential financial exposure to catastrophic risks.

• Increase the number of low emission vehicles in the government’s fleet, consistent with the target 30 per cent low emission vehicles over the next three years.

• Undertake a review of reinsurance retention levels.


2016–17

Target

2015–16 Estimated

Result 2015–16

Target 2014–15

Actual

Eligible clients issued with agency agreements 100% 100% 100% 100% Comprehensive government catastrophe reinsurance program at a competitive market price

Selected catastrophic

risks covered at competitive market prices


risks covered at competitive market prices


risks covered at competitive

market prices


risks covered at competitive

market prices Operating expense per $100 premium revenue <$5.50 $5.34 <$6.00 $5.25

Activity indicators

2016–17

Projection

2015–16 Estimated

Result 2015–16


Actual

No. of new vehicles purchased 2 350 2 650 3 000 2 768 No. of vehicles disposed 2 500 3 100 3 000 3 004 % of low emission vehicles

New target established as part of the low emission vehicle strategy. 5% — — —



Sub-program 4.3: Superannuation Services


The objectives of this sub-program are to:

• administer the various public sector superannuation schemes for the South Australian Superannuation Board and the Southern Select Super Corporation, as well as the superannuation arrangements for parliamentarians, judges and former governors.

• provide superannuation policy and legislative advice to the South Australian Superannuation Board, the Southern Select Super Corporation, the Under Treasurer, the Treasurer and the Minister for Finance.

2016–17 Budget

2015–16 Estimated


2014–15 Actual

$000 $000 $000 $000 Expenses ...................................................................... 19 901 19 897 18 369 18 056 Income .......................................................................... 27 008 23 592 18 409 17 265

Net cost of sub-program -7 107 -3 695 -40 791

FTEs as at 30 June (No.) 137.2 137.0 121.1 127.6



The increase in revenue in 2016–17 is due to the recovery of additional investing expenditure relating to the Super SA ICT System Solution project ($3.4 million).


The increase in expenditure is primarily due to the delivery of a range of projects including the Super SA ICT System Solution project and compliance with industry financial reporting requirements ($1.5 million).

The increase in revenue is due to:

• the recovery of additional investing expenditure relating to the Super SA ICT System Solution project ($3.7 million).

• increased cost recovery in 2015–16 to cover the increase in expenditure ($1.5 million).


The increase in expenditure is primarily due to the delivery of a range of projects including the Super SA ICT System Solution project and compliance with industry financial reporting requirements ($1.5 million).

The increase in revenue in 2015–16 is primarily due to:

• additional investing expenditure relating to the Super SA ICT System Solution project ($3.7 million)

• lower cost recovery in 2014–15 ($2.4 million).




• Finalised procurement and commenced implementation of a next generation commercial administration system with complementary electronic document and workflow management capabilities.

• Undertook a review of investment options with Funds SA.

• Implemented changes to administration systems and processes to support superannuation changes for police officers.

• Implemented new reporting requirements administered by the Australian Prudential Regulatory Authority and commenced transition to the new accounting standard for Superannuation Entities — Australian Accounting Standards Boards (AASB) 1056.

Targets 2016–17

• Implement phase 1 of the next generation commercial administration system with complementary electronic document and workflow management capabilities.

• Implement structural change to support the next generation commercial administration system with complementary electronic document and workflow management capabilities.

• Complete implementation of the new accounting standard for Superannuation Entities — Australian Accounting Standards Boards (AASB) 1056.


2016–17

Target

2015–16 Estimated

Result 2015–16

Target 2014–15

Actual

Achievement of approved service level standards by 30 June each year

95% 83% 95% 66%

Issue of member statements by 31 August 98% 97% 98% 98% No. of days to issue superannuant payment summaries from 1 July

14 14 14 14

Benchmarking of administrative costs with industry standards — remain in the most cost efficient quartile of industry standards while providing additional services to members

Remain in the most

cost efficient quartile

Remain in the most


Remain in the most


Remain in the most


Activity indicators

2016–17

Projection

2015–16 Estimated

Result 2015–16


Actual

No. of contributors/members in state schemes: • Members 211 000 210 500 210 000 209 350 • Triple S Scheme active contributors 29 400 29 600 29 800 30 073

Sub-program 4.4: Procurement Policy and Governance


Support the State Procurement Board in the delivery of its key objectives and in setting the strategic direction of procurement operations across government, focusing on policy and guideline development, capability development, monitoring and facilitating procurement operations across government.



2016–17 Budget

2015–16 Estimated


2014–15 Actual

$000 $000 $000 $000

Expenses ...................................................................... 2 073 1 897 2 264 1 973

Income .......................................................................... 15 10 53 122


FTEs as at 30 June (No.) 8.3 8.2 10.3 10.8









• Developed and implemented the State Procurement Board Strategic Plan 2016–18.

• Developed an implementation plan for the revised State Procurement Board policy framework.

• Conducted regular discussion forums with agency heads of procurement and implemented a twice-yearly procurement practitioners forum and an executive breakfast forum for the South Australian Executive Service.

• Completed four accreditation reviews and 12 assurance reviews.

• Worked closely with the Commonwealth Government to implement the Trans-Pacific Partnership and World Trade Organisation Government Procurement Chapters.

Targets 2016–17

• Implement the State Procurement Board revised policy framework.

• Deliver the objectives and targets established by the government’s procurement reform strategy including streamlining and simplifying procurement processes under $550 000; reducing red tape by reviewing contractual provisions relating to indemnities, insurance and liability capping; and recommending to cabinet the most efficient structural and operating model for undertaking procurement.

• Continue to implement the State Procurement Board Strategic Plan objectives.

• Develop a procurement framework for engagement with the not-for-profit sector.

• Continue to work closely with the Commonwealth Government on the implementation of the Trans-Pacific Partnership, the World Trade Organisation Government Procurement Chapters and the proposed procurement chapter of the Australia-Singapore Free Trade Agreement.



Program 5: Veterans’ Affairs


Veterans’ Affairs (Veterans SA) supports our ex-servicemen and women and those who support them, by providing a central contact point for information about the state government’s services to veterans across departments, including health, transport, disability and mental health.

Veterans SA provides administrative support to the Veterans’ Advisory Council to ensure veterans receive a voice at the highest levels of government and helps to raise public awareness of the sacrifices made by South Australia’s veterans.


2016–17 Budget

2015–16 Estimated


2014–15 Actual

$000 $000 $000 $000

Expenses Employee benefit expenses.......................................... 906 950 790 547 Supplies and services ................................................... 225 110 209 209 Depreciation and amortisation expenses ...................... 21 18 23 7 Grants and subsidies .................................................... 283 291 3 275 225 Intra-government transfers ........................................... 374 431 509 172 Other expenses ............................................................ 56 55 59 —

Total expenses 1 865 1 855 4 865 1 160 Income Commonwealth revenues ............................................. — 5 000 — — Intra-government transfers ........................................... 25 33 25 25 Other grants.................................................................. 500 500 — — Sales of goods and services ......................................... 12 10 32 60 Net gain or loss on disposal of fixed assets .................. — -9 500 — — Other Income ................................................................ — — — 8

Total income 537 -3 957 57 93 Net cost of providing services 1 328 5 812 4 808 1 067 FTEs as at 30 June (No.) 7.0 7.0 6.8 6.4



The increase in revenue is primarily related to:

• the once-off loss in 2015–16 on the transfer of the completed Anzac Centenary Memorial Garden Walk asset to the Adelaide City Council ($9.5 million)

partially offset by

• the once of receipt of the Commonwealth Government’s contribution to the Anzac Centenary Memorial Garden Walk asset ($5.0 million).




The decrease in expenditure is primarily due to the reallocation of operating expenditure to investing expenditure for the Anzac Centenary Memorial Garden Walk project ($3.0 million).

The decrease in revenue is primarily due to:

• the once-off loss in 2015–16 on the transfer of the completed Anzac Centenary Memorial Garden Walk asset to the Adelaide City Council ($9.5 million)

partially offset by

• the once of receipt of both the Commonwealth Government and the Adelaide City Council contributions to the Anzac Centenary Memorial Garden Walk asset ($5.5 million).


The increase in expenditure is primarily due to expenditure for the Anzac Day Commemorative Council in 2015–16 which was transferred from the Department of the Premier and Cabinet ($0.4 million).


• The Anzac Centenary Memorial Walk was opened on 23 April 2016 as South Australia’s contribution to the Centenary of Anzac commemorations.

• Worked closely with the Veterans’ Advisory Council and the Veterans’ Health Advisory Council to produce the South Australian Veterans’ Health Framework 2016–2020 draft paper for consultation as part of the Transforming Health initiative.

• Developed a regional engagement strategy to help educate South Australians about their local military history and to commemorate a century of service throughout South Australia.

• Worked collaboratively to increase contemporary veterans’ engagement with existing ex-service organisations.

• Completed a successful combined parliamentary and veteran delegation visit to the centenary commemorations for the Battle of Lone Pine at Gallipoli.

• Produced weekly ‘Think Piece’ series focussing on South Australia’s Military History.

• Produced Monthly ENews including a ‘Message from the Minister’ focussing on veterans related issues.

• Produced South Australia’s Ex-Service Commemorative Calendar 2016 and half yearly ‘Veterans Voice’ publication.

Targets 2016–17

• Work with SA Health to deliver the Veterans’ Mental Health Precinct at Glenside.

• Continue to chair the Memorialisation Group to appropriately recognise military service at the mental health precinct and provide advice as a member of the Oversight Panel for the development of the precinct.

• Implement the Regional Engagement Strategy, based around the Cheer Up Hut, to commemorate a century of service throughout South Australia.

• Work with the Adelaide City Council and broader veteran community to relocate the Dardanelles Cenotaph to the northern end of the Anzac Centenary Memorial Walk.

• Deliver a successful official delegation visit to the centenary commemorations for the Battles of Fromelles and Pozieres.



• Work collaboratively to increase contemporary veterans’ engagement with existing ex-service organisations.

• Continue to develop the South Australian official Centenary of Anzac website.



Program 6: Office of the Valuer-General


The Valuer-General is an independent statutory officer responsible for determining both site and capital values on an annual basis, which are utilised by local government and state based rating authorities for the levying of rates and taxes. The Valuer-General also provides various valuation services for government along with the collation of data which forms part of the centralised land information system and economic cadastre.

Program summary — expenses, income and FTEs(a)

2016–17 Budget

2015–16 Estimated


2014–15 Actual

$000 $000 $000 $000

Expenses Employee benefit expenses.......................................... 8 302 7 036 7 036 6 413 Supplies and services ................................................... 2 904 986 986 1 311 Depreciation and amortisation expenses ...................... 37 — — — Intra-government transfers ........................................... 41 — — — Other expenses ............................................................ 98 — — —

Total expenses 11 382 8 022 8 022 7 724 Income Intra-government transfers ........................................... — 29 29 — Fees, fines and penalties .............................................. 13 836 13 366 13 366 13 346 Sales of goods and services ......................................... 60 — — —

Total income 13 896 13 395 13 395 13 346 Net cost of providing services -2 514 -5 373 -5 373 -5 622 FTEs as at 30 June (No.) 97.8 81.0 81.0 73.4

(a) The Office of the Valuer-General transferred from the Department of Planning, Transport and Infrastructure to the Department of Treasury and Finance on 1 July 2016.



The increase in expenditure is primarily due to additional support to the Office of the Valuer-General to undertake improvements in the processes for the valuation of properties in South Australia ($2.8 million).








• Delivered the first General Valuation for the State utilising South Australian Integrated Land Information System (SAILIS), delivering $366 051 million of Capital Value for use by local government, SA Water and Revenue SA for rating and taxing purposes; and $214 474 million of site value primarily used for Land Tax purposes and by some regional councils.

• Completed the first year of land valuation appeals under the jurisdiction of the South Australian Civil and Administrative Tribunal (SACAT), creating further transparency around valuations utilised for rating and taxing.

Targets 2016–17

• Commencement of a rolling five-year revaluation program in conjunction with transparency and accountability initiatives.

• Anticipated record assessment growth in line with market growth (target 916 000 assessments).

• Appointment of next term of the Review Valuers Panel in accordance with Section 25B of the Valuation of Land Act 1971.

Performance indicators(a)

2016–17

Target

2015–16 Estimated

Result 2015–16

Target 2014–15

Actual Percentage of valuations where value is upheld 99.6% — — — Percentage of new valuation records created within four weeks following deposit of a plan of division

65.0% — — —

(a) The Office of the Valuer-General transferred from the Department of Planning, Transport and Infrastructure to the Department of Treasury and Finance on 1 July 2016.



Treasury and FinanceStatement of comprehensive income

2016-17Budget

2015-16Estimated

Result

2015-16Budget

2014-15

Actual$000 $000 $000 $000



Supplies and servicesGeneral supplies and services........................................... 34 761 35 662 26 139 29 092Consultancy expenses....................................................... 1 970 3 119 1 788 2 159

Depreciation and amortisation.............................................. 3 536 3 194 3 194 1 321Borrowing costs.................................................................... 404 404 404 —Grants and subsidies............................................................ 312 321 3 305 257Intra government transfers.................................................... 3 876 3 871 10 694 10 541Other expenses..................................................................... 3 011 2 906 2 872 —

Total expenses 114 739 113 250 98 665 99 080

IncomeCommonwealth revenues..................................................... — 5 000 — —Intra-government transfers.................................................... 289 192 184 297Other grants.......................................................................... 500 500 — —Fees, fines and penalties...................................................... 14 157 285 285 424Sales of goods and services................................................. 48 742 44 561 40 983 39 530Net gain or loss on disposal of assets.................................. — -9 500 — —Other income........................................................................ 1 063 1 512 699 2 257

Total income 64 751 42 550 42 151 42 508




ExpensesCash alignment.................................................................. — — — 2 737


Total comprehensive result 5 653 6 194 -792 -192



Treasury and FinanceStatement of financial position

2016-17Budget

2015-16Estimated

Result

2015-16Budget

2014-15

Actual$000 $000 $000 $000

AssetsCurrent assetsCash and cash equivalents................................................... 10 154 9 758 8 675 9 683Receivables.......................................................................... 5 245 5 196 4 112 5 147


Non current assets

Land and improvements....................................................... 554 643 285 —Plant and equipment............................................................. 3 183 2 178 2 569 1 462Intangible assets................................................................... 37 183 30 624 23 868 24 967Other non-current assets...................................................... 6 6 33 6


Total assets 56 325 48 405 39 542 41 265


Salaries and wages........................................................... 665 509 549 313Annual leave..................................................................... 3 983 3 910 3 723 3 858Long service leave............................................................ 1 825 1 806 1 877 1 787Other................................................................................. 276 276 231 276

Short-term provisions............................................................ 184 179 210 174Other current liabilities.......................................................... — — 140 —



Long service leave............................................................ 14 354 13 651 11 663 13 068Long-term provisions............................................................ 519 532 752 512



Net assets 26 573 19 658 11 681 13 464

Equity

Contributed capital................................................................ 1 809 547 547 547Retained earnings................................................................. 24 764 19 111 11 134 12 917

Total equity 26 573 19 658 11 681 13 464




Treasury and FinanceStatement of cash flows

2016-17Budget

2015-16Estimated

Result

2015-16Budget

2014-15

Actual$000 $000 $000 $000

Operating activitiesCash outflowsEmployee benefit payments................................................... 65 895 62 855 49 277 53 411Payments for supplies and services...................................... 36 731 38 781 27 927 36 409Interest paid........................................................................... 404 404 404 —Grants and subsidies............................................................. 312 321 3 305 257Intra-government transfers..................................................... 3 876 3 871 10 694 10 541Other payments..................................................................... 2 879 2 780 2 746 870


Cash inflowsIntra-government transfers..................................................... 289 192 184 297Commonwealth receipts........................................................ — 5 000 — —Other grants........................................................................... 500 500 — —Fees, fines and penalties....................................................... 14 157 285 285 424Sales of goods and services.................................................. 48 672 44 491 40 913 41 951GST received......................................................................... — — — 1 459Other receipts........................................................................ 983 1 435 622 2 257


State governmentAppropriation.......................................................................... 55 641 65 262 55 722 50 412Other receipts........................................................................ — 11 632 — 8 705Payments

Cash alignment................................................................... — — — 2 737


Net cash provided by (+)/used in (-) operating activities 10 145 19 785 3 373 1 280

Investing activitiesCash outflowsPurchase of property, plant and equipment........................... 1 314 11 189 1 116 471Purchase of intangibles.......................................................... 9 697 8 521 500 4 849


Net cash provided by (+)/used in (-) investing activities -11 011 -19 710 -1 616 -5 320

Financing activitiesCash inflowsCapital contributions from state government......................... 1 262 — — —

Cash generated from financing activities 1 262 — — —

Net cash provided by (+)/used in (-) financing activities 1 262 — — —

Net increase (+)/decrease (-) in cash equivalents 396 75 1 757 -4 040





Administered items for the Department of Treasury and Finance Statement of comprehensive income(a)

2016–17 Budget

2015–16 Estimated


2014–15 Actual

$000 $000 $000 $000 Expenses Employee benefit expenses

Salaries, wages, annual and sick leave ...................... 490 320 296 308 Revaluation of unfunded superannuation liability(b) ..... -238 700 1 136 900 -257 400 460 500

Supplies and services General supplies and services .................................... 48 710 53 260 48 610 51 879

Borrowing costs(c) ............................................................. 675 249 679 351 652 676 768 763 Grants and subsidies(c) ..................................................... 1 204 655 965 519 1 219 748 221 408 Intra-government transfers ............................................... 386 485 282 748 642 996 207 037 Other expenses(c) ............................................................. 10 329 308 10 137 160 9 591 386 12 378 538

Total expenses 12 406 197 13 255 258 11 898 312 14 088 433

Income Taxation ............................................................................ 3 630 282 3 575 251 3 654 317 3 564 839 Tax equivalent revenues(c) ................................................ 78 555 109 852 100 032 129 840 Commonwealth revenues ................................................. 6 404 849 5 873 726 5 794 770 5 322 538 Intra-government transfers ............................................... 15 485 10 034 10 034 1 655 724 Fees, fines and penalties(c) ............................................... 139 158 125 853 133 191 104 160 Sales of goods and services ............................................. 192 186 186 — Interest revenues .............................................................. 103 604 77 259 82 215 83 023 Dividend income(c) ............................................................ 148 083 268 020 220 527 208 498 Other income(d) ................................................................. 45 003 400 940 44 214 184 357

Total income 10 565 211 10 441 121 10 039 486 11 252 979

State government Income

Appropriation............................................................... 1 616 077 1 535 524 1 631 666 1 406 543 Expenses

Cash alignment ........................................................... — 140 638 — 108 457

Net income from/expenses to state government 1 616 077 1 394 886 1 631 666 1 298 086

Net result -224 909 -1 419 251 -227 160 -1 537 368

(a) This statement reflects the aggregated transactions of the Department of Treasury and Finance Consolidated Account items and the Treasury and Finance Administered Items Account.

(b) The 2015–16 estimated result reflects a lower than expected return on superannuation assets in 2015–16 compared to 2016–17. This is partly offset by the impact of a higher discount rate to value the unfunded superannuation liability in accordance with Australian Accounting Standards.

(c) Reflects the government’s decision to reduce its equity in SA Water. This has resulted in a once-off return of capital to the Consolidated Account in 2014–15. This has reduced borrowings. The restructure also results in a reduction in distributions paid to government partially offset by increased guarantee fees payable and lower borrowing costs.

(d) Budget figures do not include the return of surplus cash held by agencies at 30 June 2015 to the Consolidated Account in accordance with the cash alignment policy.



Administered items for the Department of Treasury and Finance Statement of financial position(a)

2016–17 Budget

2015–16 Estimated


2014–15 Actual

$000 $000 $000 $000

Assets Current assets

Cash and cash equivalents .............................................. 410 408 410 408 303 196 410 408 Receivables ...................................................................... 180 371 203 366 240 711 230 054 Non-current assets held for sale ....................................... 557 557 557 557


Non-current assets

Financial assets ................................................................ 6 307 562 5 838 970 5 954 111 5 194 490 Intangible assets ............................................................... 325 325 325 325

Total non-current assets 6 307 887 5 839 295 5 954 436 5 194 815

Total assets 6 899 223 6 453 626 6 498 900 5 835 834

Liabilities Current liabilities

Payables ........................................................................... 23 179 23 179 36 150 23 179 Short-term borrowings ...................................................... 6 728 601 5 356 962 5 110 355 4 557 969 Employee benefits

Superannuation........................................................... 476 200 457 900 430 400 413 900 Other current liabilities ...................................................... 33 700 33 700 30 153 —

Total current liabilities 7 261 680 5 871 741 5 607 058 4 995 048

Non-current liabilities

Long-term borrowings ....................................................... 4 407 882 4 804 615 5 094 643 4 740 375 Long-term employee benefits

Superannuation........................................................... 11 702 100 12 024 800 12 089 600 10 944 300

Total non-current liabilities 16 109 982 16 829 415 17 184 243 15 684 675

Total liabilities 23 371 662 22 701 156 22 791 301 20 679 723

Net assets -16 472 439 -16 247 530 -16 292 401 -14 843 889

Equity Retained earnings ............................................................ -16 472 439 -16 247 530 -16 292 401 -14 843 889

Total equity -16 472 439 -16 247 530 -16 292 401 -14 843 889

(a) This statement reflects the aggregated transactions of the Department of Treasury and Finance Consolidated Account Items and the Treasury and Finance Administered Items Account. The balances are reported as at 30 June end of period.



Administered items for the Department of Treasury and Finance Consolidated Account items Statement of cash flows

2016–17 Budget

2015–16 Estimated


2014–15 Actual

$000 $000 $000 $000

Operating activities Cash inflows

Taxation Contribution from Casino Operations ............................. 18 800 18 500 20 750 19 179 Contribution from SA Lotteries ....................................... 79 522 77 852 78 502 74 480 Land tax ......................................................................... 590 999 577 118 580 331 564 919 Commonwealth places mirror land tax(a) ........................ 1 400 1 400 1 400 1 373 Other taxes on property ................................................. — — — 140 Payroll tax ...................................................................... 1 391 964 1 346 327 1 418 278 1 319 789 Commonwealth places mirror payroll tax(a) .................... 24 400 23 600 24 800 23 095 Stamp duties .................................................................. 1 519 517 1 529 144 1 526 117 1 567 264 Commonwealth places mirror stamp duties(a) ................ 267 267 300 283

Commonwealth receipts Commonwealth general purpose grants

GST revenue grants ................................................. 6 100 500 5 613 900 5 517 500 5 020 023 Commonwealth specific purpose grants

Council of Australian Governments funding arrangements .............................................. 304 349 300 026 276 770 285 738 Natural disaster relief and recovery arrangements ........................................................... — 500 500 —

Interest receipts

Interest on investments .................................................. 101 742 75 487 78 959 79 498 Interest recoveries ......................................................... 1 862 1 772 3 256 2 256

Dividends and distributions Adelaide Convention Centre(b)

Dividend ................................................................... — — — 920 Income tax equivalent .............................................. — — — 613

Adelaide Entertainment Centre(b) Dividend ................................................................... — — — 5 000

Adelaide Venue Management Corporation(b) Dividend ...................................................................... 1 600 1 580 — — Arrangements with private electricity entities

Local government rate equivalent ............................ 243 239 239 232 Department of Planning, Transport and Infrastructure

Income tax equivalent .............................................. 2 614 2 614 2 614 2 835 Local government rate equivalent ............................ 1 016 991 991 1 430

Flinders Ports Payment in lieu of other taxes .................................. 2 561 2 498 2 498 2 358

Forestry SA Dividend ...................................................................... — 782 — —



2016–17 Budget

2015–16 Estimated


2014–15 Actual

$000 $000 $000 $000 Funds SA

Local government rate equivalent ............................ 227 221 221 228 HomeStart Finance

Dividend ................................................................... 6 801 11 466 10 862 7 137 Income tax equivalent .............................................. 4 858 5 085 4 623 5 103

Public Trustee Office Dividend ................................................................... 475 691 464 1 440 Income tax equivalent .............................................. 296 6 6 889

Renewal SA Dividend ................................................................... 2 650 7 199 5 272 — Local government rate equivalent ............................ 1 078 1 051 1 312 999

SA Water Corporation(c) Dividend ................................................................... 121 758 205 886 163 873 183 979 Income tax equivalent ............................................. 75 582 107 139 66 970 109 330 Local government rate equivalent ............................ 1 575 1 564 1 564 1 634

Scope Global Pty Ltd (formerly Austraining Pty Ltd) Income tax equivalent ............................................. 600 600 600 332

South Australian Government Employee Residential Properties

Dividend ................................................................... 1 706 1 706 1 706 1 706 Income tax equivalent .............................................. 465 465 465 754

South Australian Government Financing Authority Dividend ................................................................... 13 093 38 710 38 350 8 870 Income tax equivalent .............................................. 10 711 4 024 13 200 19 081

West Beach Trust Income tax equivalent .............................................. 2 — 29 —

Other receipts Adelaide Oval Sublease Fee ......................................... 200 — — — Department of Planning, Transport and Infrastructure ........................................................... 10 432 11 236 10 266 26 059 Essential Services Commission of South Australia ........ 12 917 7 529 7 529 7 650 Guarantee fees(c) ........................................................... 139 158 125 853 133 191 104 160 Independent Gaming Corporation contribution to Gamblers Rehabilitation Fund........................................ 2 000 2 000 2 000 2 000 Interest adjustment from DECD ..................................... — 1 436 — — Metropolitan Drainage Fund .......................................... 7 7 7 — National Tax Equivalent Program .................................. 50 50 50 — NRM Levy — Treasurer’s Water Licences(d) .................. 364 353 — — Return of cash to Consolidated Account ― cash alignment ....................................................................... — 353 502 — 147 168 Return of deposit account balances ............................... — 465 — 1 966 Return of deposit account balances — superannuation .......................................... 30 000 30 000 30 000 — Sundry fees .................................................................... 36 35 35 164 Sundry recoupment ........................................................ 156 151 151 — Surplus from Consolidated Account(c) ............................ — — — 1 645 716 Unclaimed monies ......................................................... 1 957 1 898 1 898 2 091

Total receipts for Consolidated Account 10 582 510 10 494 925 10 028 449 11 249 881

Surplus from the Consolidated Account — — — 1 645 716



2016–17 Budget

2015–16 Estimated


2014–15 Actual

$000 $000 $000 $000

Cash outflows

Employee benefit payments Minister's salary, electorate and expense allowance ..... 351 320 296 308 Valuer-General(e) ............................................................ 139 — — —

Grants, subsidies and transfers First Home Owner Grants .............................................. 33 117 32 706 38 833 40 631 Payments to fund Consolidated Account(c) .................... 979 053 726 525 1 040 693 —

Total payments appropriated under various acts 33 607 33 026 39 129 40 939

Total payments funded by borrowings 979 053 726 525 1 040 693 —


Cash inflows Repayment of advances

Administered items for the Department of Planning, Transport and Infrastructure .......................................... 209 209 209 271 Department for Health and Ageing ................................. 3 157 2 681 2 681 2 152 Department of Primary Industries and Regions ............. 3 000 24 307 3 300 14 457 Renmark Irrigation Trust ................................................ 79 147 75 134 Royal Zoological Society of South Australia .................. 251 240 240 230

Return of capital HomeStart Finance ........................................................ — 15 610 15 610 — SA Water Corporation(c) ................................................. — — — 2 700 000

Total receipts for Consolidated Account 6 696 43 194 22 115 2 717 244


Cash inflows Borrowings

Borrowings to fund Consolidated Account(c) .................. 979 053 726 525 1 040 693 — Other

Deposits with Treasurer ................................................. 1 371 639 798 993 863 850 1 645 703

Total borrowings 979 053 726 525 1 040 693 —

Total receipts re cash and deposits 1 371 639 798 993 863 850 1 645 703 Cash outflows Repayment of borrowings

South Australian Government Financing Authority(c) ...... — — — 1 645 716 Other payments

Deposits with South Australian Government Financing Authority ......................................................................... 1 371 639 798 993 863 850 1 645 703

Total payments funded by Consolidated Account Surplus — — — 1 645 716

Total payments re cash and deposits 1 371 639 798 993 863 850 1 645 703

Net impact on Consolidated Account 10 555 599 10 505 093 10 011 435 12 280 470

Net impact on cash and deposits — — — —



(a) Taxes akin to state taxes are levied on activities conducted on Commonwealth places under the authority of Commonwealth mirror tax legislation. Revenue is retained by the state.

(b) The Adelaide Entertainments Corporation and Adelaide Convention Centre merged to form Adelaide Venue Management Corporation effective 1 August 2015.

(c) Reflects the government’s decision to reduce its equity in SA Water. This has resulted in a once-off return of capital to the Consolidated Account in 2014–15.

(d) As part of the financial closure of the forward sale of the State’s Green Triangle forest plantations the Treasurer retained the water licenses. These are administered by Treasury and Finance.

(e) Cabinet approved the transfer of the Office of the Valuer-General from the Department of Planning, Transport and Infrastructure (DPTI) to the Department of Treasury and Finance (DTF) effective 1 July 2016.



Administered items for the Department of Treasury and Finance Treasury and Finance Administered Items Account Statement of cash flows

2016–17 Budget

2015–16 Estimated


2014–15 Actual

$000 $000 $000 $000

Operating activities Cash outflows

Employee benefit payments Past service superannuation payments ......................... 457 900 413 900 413 900 416 600 Police superannuation, guaranteed minimum retirement benefit ........................................................... 1 000 1 000 1 000 —

Payments for supplies and services National Tax Equivalent Program .................................. 60 60 60 1 Repayment of unclaimed monies ................................... 350 1 300 350 3 256 South Australian Made Campaign ................................. — 2 000 — — State share of GST administration costs ........................ 48 300 48 400 48 200 48 600

Interest paid Interest paid on deposit accounts and other monies ...... 27 997 28 400 39 866 28 210 Interest on borrowings(a)................................................. 255 052 249 451 234 610 315 347

Grants, subsidies and transfers Adelaide Convention Centre(b) ....................................... — — 18 108 12 222 Adelaide Oval Sublease Fee ......................................... 200 — — — Adelaide Venue Management Corporation(b) ................. 22 803 18 398 — — Building Indemnity Insurance……………………………. 2 112 3 800 2 097 1 000 Charitable and Social Welfare Fund .............................. 4 000 4 000 4 000 4 000 Community Development Fund...................................... 20 000 20 000 20 000 20 000 Community Support Grants……………………………… 150 150 150 — Community Wastewater Management Schemes (benefits to households in goods and services) ............. 4 104 4 004 4 004 3 906 Consumer Advocacy and Research Fund ..................... 276 272 272 263 Contingency provisions — employee entitlements ......... 50 122 52 189 86 212 59 326 Contingency provisions — investing contingencies ....... 35 530 46 636 125 380 2 726 Contingency provisions — supplies and services .......... 180 412 55 552 306 991 31 707 Cross Billing and Budget Neutrality Payments ............... — 51 700 — — Department for Communities and Social Inclusion ........ 3 845 3 845 3 845 3 845 Department of Environment, Water and Natural Resources ...................................................................... 869 162 162 158 Department for Manufacturing, Innovation, Trade, Resources and Energy(c) ................................................ — — — 9 234 Department of State Development(c) .............................. 9 711 9 328 9 328 — Department of Treasury and Finance ............................ 348 279 279 272 Donation to Premier’s Council for Women ..................... — 15 — — Donation to Zahra Foundation ....................................... — — — 60 Emergency services levy — land and business regulations ..................................................................... 276 269 269 262 Emergency services levy remissions ............................. 24 569 26 681 24 153 19 955 Essential Services Commission of South Australia ........ 680 330 330 384 Fire damage and insurance costs (SAICORP Fund No. 2) .................................................................... 7 000 — 7 000 —



2016–17 Budget

2015–16 Estimated


2014–15 Actual

$000 $000 $000 $000 ForestrySA ..................................................................... 2 289 — 3 499 3 820 Gamblers Rehabilitation Fund........................................ 2 000 2 000 2 000 2 000 Grant to South Australian Ice Sports Federation Incorporated ................................................................... — 1 070 — — Housing Construction Grant(d) ........................................ — 5 500 — 30 900 Industry Financial Assistance Account ........................... 700 700 700 — Local Government Taxation Equivalent Fund ................ 600 600 — — Metropolitan drainage systems maintenance ................. 1 242 1 258 976 616 Ministerial council on gambling ...................................... — — — 699 NRM Levy — Treasurer’s Water Licences ..................... 364 353 — — Renewal SA .................................................................. 64 060 23 155 9 596 21 942 Residual electricity entities ............................................. 500 500 500 500 Riverbank Precinct Authority .......................................... 734 716 716 699 South Australian Fire and Emergency Services Commission ................................................................... — 2 100 — — South Australian Tourism Commission(e) ....................... — 11 785 — — SA Lotteries ................................................................... 1 962 2 093 2 605 3 300 SA Water Corporation .................................................... 117 420 116 169 116 168 116 009 Seniors Housing Grant(f) ................................................ 2 500 2 500 4 200 840 Small Business Payroll Tax Rebate ............................... 9 400 10 750 11 300 10 112 South Australian Motor Sport Board(e) ........................... — — 11 785 11 181 Sport and Recreation Fund ............................................ 3 500 3 500 3 500 3 500 State Procurement Board .............................................. 450 439 439 428 Support services to parliamentarians ............................. 23 393 22 963 23 320 23 281 Treasurers Interest in the National Wine Centre ............ — — — 740

Other payments Other payments ............................................................. 50 50 50 508 Overpayment of income tax equivalent .......................... — — — 901 Payments to the South Australian Superannuation Fund .................................................... 30 000 30 000 30 000 — Refunds and remissions ................................................ 118 40 322 118 33 708

Cash used in operations 1 418 949 1 320 644 1 572 038 1 247 018

State government Appropriation 1 582 470 1 502 498 1 592 537 1 406 543 Payments

Cash alignment .............................................................. — 140 638 — 108 457

Net cash provided by state government 1 582 470 1 361 860 1 592 537 1 298 086

Net cash provided by (+)/used in (-) operating activities 163 521 41 216 20 499 51 068

Investing activities Cash outflows Other payments

Advances granted Department of Primary Industries and Regions ........ — 20 000 — —



2016–17 Budget

2015–16 Estimated


2014–15 Actual

$000 $000 $000 $000 Equity capital contributions

Renewal SA ............................................................. 145 000 135 000 — — South Australian Housing Trust ................................ 14 374 22 924 18 722 23 560


Net cash provided by (+)/used in (-) investing activities -159 374 -177 924 -18 722 -23 560


Cash outflows

Repayment of borrowings South Australian Government Financing Authority(g) ..... 4 147 3 930 1 777 3 720

Cash used in financing activities 4 147 3 930 1 777 3 720

Net cash provided by (+)/used in (-) financing activities -4 147 -3 930 -1 777 -3 720

Net increase(+)/decrease (-) in cash equivalents — -140 638 — 23 788



Note: Totals may not add due to rounding.

(a) Reflects the government’s decision to reduce its equity in SA Water. This has resulted in a once-off return of capital to the Consolidated Account in 2014–15. The return of capital results in a reduction in the Treasurer’s borrowing requirements and associated interest expense.

(b) The Adelaide Entertainments Corporation and Adelaide Convention Centre merged to form Adelaide Venue Management Corporation effective 1 August 2015.

(c) The Department for Manufacturing, Innovation, Trade, Resources and Energy (DMITRE) transferred to the new Department of State Development (DSD) on 1 July 2014. As a result the grant for the Office of the Technical Regulator previously paid to DMITRE is paid to DSD.

(d) On 15 October 2012, the First Home Owner Bonus was replaced with the Housing Construction Grant for new home contracts entered into until 31 December 2013 (inclusive). Payments in 2015–16 reflect the processing of residual applications.

(e) In 2015–16 the functions of the South Australian Motor Sport Board (SAMSB) were transferred to the South Australian Tourism Commission (SATC). From 2016–17 onwards the functions of the SAMSB will be funded through appropriation rather than grants and subsidies.

(f) The government introduced a grant of up to $8 500 in the 2014–15 for people over 60 years of age who want to right size their principal place of residence and purchase a new age-appropriate home to live in. The grant is available for eligible new home contracts entered into between 1 July 2014 and 30 June 2016 (inclusive).

(g) Relates to repayment of loans for the Flinders Medical Carpark with the Department for Health and Ageing.



Administered items for the Department of Treasury and Finance Other Accounts Statement of cash flows

2016–17 Budget

2015–16 Estimated


2014–15 Actual

$000 $000 $000 $000


Receipts

Taxation Emergency services levy — state government .............. 6 731 6 620 7 589 6 608 Emergency services levy — other .................................. 213 062 209 924 206 963 190 742 Local Government Taxation Equivalent Fund ................ — — — 1 653

Sales of goods and services Essential Services Commission of South Australia ........ 189 44 44 92 Housing Loans Redemption Fund .................................. 2 2 2 — South Australian Motor Sport Board(a) ........................... — — 25 199 20 040 State Procurement Board .............................................. — — — 78

Interest received Country Price Equalisation Scheme ............................... — — — 390 Housing Loans Redemption Fund .................................. 552 552 552 286 Independent Gambling Authority(b) ................................. — 7 — 86 Industry Financial Assistance Account ........................... — — — 63 Local Government Disaster Fund .................................. 3 018 3 018 3 018 672 Local Government Taxation Equivalent Fund ................ 35 35 35 10 South Australian Motor Sport Board(a) ........................... — — 415 341

Intra-government transfers Community Development Fund...................................... 20 000 20 000 20 000 20 000 Community Emergency Services Fund — state government ............................................. 771 757 674 628 Community Emergency Services Fund — other ............ 23 798 25 924 23 479 19 327 Essential Services Commission of South Australia ........ 680 330 330 384 Local Government Taxation Equivalent Fund ................ 600 600 — — Industry Financial Assistance Account ........................... 9 621 7 852 7 202 — South Australian Motor Sport Board(a) ........................... — — 11 785 11 181 State Procurement Board .............................................. 450 439 439 428 Support services to parliamentarians ............................. 23 393 22 963 23 320 23 280 Anzac Day Commemoration Council ............................. 350 350 350 — Treasurer’s Interest in National Wine Centre………….. — — — 740

Receipts from government Independent Gambling Authority(b) ................................. — 1 386 1 769 1 731

Grants and subsidies Industry Financial Assistance Account ........................... — — — 2 719 Intergovernmental Federal Financial Relations .............. 2 281 983 1 727 024 1 876 302 1 576 134 Local Government Taxation Equivalent Fund ................ 2 025 2 025 2 025 —

Other receipts Community Emergency Services Fund .......................... 424 421 421 435 Essential Services Commission of South Australia ........ 17 221 10 864 10 864 4 224 Independent Gambling Authority(b) ................................. — — — 36 Industry Financial Assistance Account ........................... — — — 13 732



2016–17 Budget

2015–16 Estimated


2014–15 Actual

$000 $000 $000 $000

South Australian Motor Sport Board(a) ........................... — — — 864 Support services to parliamentarians ............................. — — — 15 Treasurer’s Interest in National Wine Centre ................. 5 4 4 26

Total receipts 2 604 910 2 041 141 2 222 781 1 896 945

Payments Employee benefit payments

Essential Services Commission of South Australia ........ 3 513 3 419 3 419 2 976 Independent Gambling Authority(b) ................................. — 963 974 980 South Australian Motor Sport Board(a) ........................... — — 1 531 1 566 State Procurement Board .............................................. 41 40 40 69 Support services to parliamentarians ............................. 16 502 16 183 16 183 15 658

Payments for supplies and services Essential Services Commission of South Australia ........ 1 613 1 803 1 803 1 231 Housing Loans Redemption Fund .................................. 25 24 24 — Independent Gambling Authority(b) ................................. — 402 787 576 South Australian Motor Sport Board(a) ........................... — — 37 238 29 440 State Procurement Board .............................................. 401 392 392 356 Support services to parliamentarians ............................. 7 075 6 911 6 939 6 479 Treasurer’s Interest in National Wine Centre ................. 43 782 42 28 Anzac Day Commemoration Council ............................. 10 10 10 —

Intra-government transfers Community Development Fund...................................... 20 000 20 000 20 000 20 000 Community Emergency Services Fund .......................... 244 786 243 645 239 126 217 740 Essential Services Commission of South Australia ........ 12 917 7 529 7 529 100 Intergovernmental Federal Financial Relations .............. 2 229 796 1 714 755 1 874 887 1 606 344

Grants and subsidies Local Government Concessions .................................... — — — 1 966 Industry Financial Assistance Account ........................... 10 781 11 702 7 202 10 101 Local Government Disaster Fund .................................. 1 576 2 110 1 538 2 997 Local Government Taxation Equivalent Fund ................ 2 660 2 660 2 060 1 650 Anzac Day Commemoration Council ............................. 340 340 340 —

Payments to government Intergovernmental Federal Financial Relations .............. 58 661 35 824 24 584 —

Other payments Essential Services Commission of South Australia ........ 7 7 7 5 Independent Gambling Authority(b) ................................. — 10 8 — Industry Financial Assistance Account ........................... — — — 13 977 Local Government Disaster Fund .................................. 145 145 145 — South Australian Motor Sport Board(a) ........................... — — 38 — State Procurement Board .............................................. 6 6 6 — Support services to parliamentarians ............................. 24 23 23 2

Total payments 2 610 922 2 069 685 2 246 875 1 934 241

Net cash provided by operating activities -6 012 -28 544 -24 094 -37 296



2016–17 Budget

2015–16 Estimated


2014–15 Actual

$000 $000 $000 $000

Investing activities Payments Purchase of plant and equipment

Essential Services Commission of South Australia ........ 134 131 370 — South Australian Motor Sport Board(a) ........................... — — 350 645 Support services to parliamentarians ............................. — 697 — 49 Treasurer’s Interest in National Wine Centre ................. 0 772 230 83

— — — — Purchase of intangible assets

Essential Services Commission of South Australia ............................................... 370

-74 319 — 318 Granted other financial assets

Industry Financial Assistance Account .................................................................. 370

0 0 0 41

— 2 000 — —

Total payments 60 3 147 720 1 012

Net cash provided by investing activities -60 -3 147 -720 -1 012

Financing activities Cash inflows Cash transfers from restructuring activities

Independent Gambling Authority(b) ................................. 28 —

— -3 974 — — Anzac Day Commemoration Fund ................................. — — 28 —

Cash generated from financing activities — -3 974 28 —

Net increase (+)/decrease (-) in cash equivalents -6 072 -35 665 -24 786 -38 308

(a) In 2015–16 the functions of the South Australian Motor Sport Board (SAMSB) were transferred to the South Australian Tourism Commission (SATC).

(b) The Independent Gambling Authority transferred from the Department of Treasury and Finance to the Attorney-General’s Department on 1 January 2016.





Controlled Items Statement of comprehensive income — controlled

Expenses

The $1.5 million increase in expenditure is primarily due to:

• an increase in expenditure relating to the transfer of the Office of the Valuer-General from the Department of Planning, Transport and Infrastructure to the Department of Treasury and Finance on 1 July 2016 ($10.7 million)

• an increase in expenditure relating to the transfer of Simpler Regulation Unit from the Department of the Premier and Cabinet to the Department of Treasury and Finance on 1 July 2016 ($0.8 million)

• an increase in expenditure relating to administration costs for the South Australian Venture Capital Fund ($0.8 million)

partially offset by

• a reduction in expenditure relating to the Compulsory Third Party Insurance Market Reform project ($10.9 million)

Income


• an increase in revenue relating to the transfer of the Office of the Valuer-General from the Department of Planning, Transport and Infrastructure to the Department of Treasury and Finance on 1 July 2016 ($13.9 million)

• the loss on disposal of assets relating to the Anzac Centenary Memorial Garden Walk project in 2015–16 ($9.5 million)

• an additional recovery for the Super SA ICT System Solution project ($3.4 million)

partially offset by

• once-off Commonwealth revenues in 2015–16 relating to the Anzac Centenary Memorial Garden Walk project ($5.0 million).


The $7.9 million increase in total assets is primarily due to the investing expenditure relating to the Super SA ICT System Solution project ($7.1 million)


The movements in cash outflows and inflows are generally consistent with the changes discussed above under the statement of comprehensive income and the statement of financial position.



Administered items

The administered items for the Department of Treasury and Finance include Consolidated Account items, special deposit accounts and the assets and liabilities held on behalf of the state by the Treasurer. The more significant assets and liabilities include cash and deposits at call, loans made to other government entities, past superannuation liabilities and borrowings. For presentation purposes, three cash flow statements have been prepared: Consolidated Account items, Treasury and Finance Administered Items Account, and Other Accounts. This format has been used to provide clarity given the volume of items administered by the department.

The Consolidated Account items cash flow statement presents administered receipts collected on behalf of the government and paid to the Consolidated Account. The statement also includes administered payments that are funded by specific appropriation authorised in various Acts.

The Treasury and Finance Administered Items Account cash flow statement presents payments administered on behalf of the government and funded by appropriation authorised in the annual Appropriation Act.

The Other accounts cash flow statement presents the receipts and payments for the remaining special deposit accounts administered by the department.

Statement of Comprehensive Income

Expenses

Material variances arise from:

• employee benefits expense — revaluation of unfunded superannuation liability — the 2015–16 year includes the impact of a lower than expected return on superannuation assets compared to an assumed long-term earnings rate of 7.0 per cent used for the 2016–17 Budget. This has been partly offset by a higher discount rate to value the unfunded superannuation liability in accordance with Australian Accounting Standards.

Income


• lower taxation revenue than expected in 2015–16 due to growth in collections for a number of taxes, particularly payroll tax and land tax

• lower tax equivalent revenues in 2016–17 largely reflect lower payments from SA Water primarily due to lower rates and sewerage prices

• higher Commonwealth Government revenues reflect higher GST revenue grants in 2016–17 as a result of growth in the GST pool and South Australia’s grant share

• higher fees, fines and penalties in 2016–17 mainly due to an increase in the guarantee fees as a result of increased borrowings by Renewal SA

• higher intra government transfers due to water licence fee revenue from ESCOSA to support the regulatory activities of the Office of the Technical Regulator

• lower dividend income from SA Water in 2016–17 as a result of lower water and sewerage prices. Lower dividends from the South Australian Government Financing Authority (SAFA) following a return of excess capital in SAFA’s fleet business and treasury operations during 2015–16

• higher interest income on investments in 2016–17 due to an increase in deposits with SAFA

• Other income — return of surplus cash held by agencies at 30 June 2015 to the Consolidated Account in 2015–16 in accordance with the cash alignment policy



Statement of Cash flows –Consolidated Account



• taxation measures including:

– higher payroll tax collections in 2016–17 reflecting growth in taxable payrolls

– lower stamp duties in 2016–17 reflecting tax reform measures introduced by the government in 2015–16

– higher land tax in 2016–17 due to growth in site values

• Commonwealth receipts arising from higher GST revenue grants in 2016–17 due to growth in the GST pool and South Australia’s grant share

• dividends and distributions:

– lower dividends and distributions from HomeStart Finance in 2016–17 following a special dividend of $4.4 million in 2015–16

– lower dividends from Renewal SA in 2016–17 following a special dividend payment of $7.2 million relating to the Adelaide Station Environment Redevelopment in 2015–16

– lower dividends and distributions from SA Water in 2016–17 due to lower water and sewerage prices from 2016–17

– lower distributions from SAFA in 2016–17 following a special dividend payment of $30.0 million reflecting return of excess capital in SAFA’s fleet business and Treasury Operations was made in 2015–16

• other receipts:

– higher guarantee fees in 2016–17 primarily as a result of increased borrowings by Renewal SA

– higher water licence fee revenue from ESCOSA to support the regulatory activities of the Office of the Technical Regulator

– the return of cash to the Consolidated Account in 2015–16 in accordance with the cash alignment policy



• return of capital — reflects a once-off return of capital by HomeStart Finance in 2015–16.

Statement of cash flows– Treasury and Finance Administered Item



• employee benefit payments—past service superannuation payments increase due to a higher unfunded liability valuation primarily driven by a lower than expected return on fund assets in 2015–16.

• grants subsidies and transfers:

– higher contingency provisions — higher supplies and services provisions.

– a $51.7 million Cross Billing and Budget Neutrality payment in 2015–16 representing accrued expenses for amounts due to the Commonwealth Government in 2014–15 ($25.4 million) and 2015–16 ($26.3 million) as part of the arrangements to transition aged care services and specialist disability services for people aged 65 and over to the Commonwealth Government



from 1 July 2011. From 2015–16 onwards the budget for this payment has been transferred to the Department for Communities and Social Inclusion.

– no Housing Construction Grant is expected in 2016–17 reflecting the expiration of the grant on 31 December 2013. Payments in 2015–16 reflect the processing of residual applications as there is a lag between a new home contract being entered into and the payment of the grant.

– higher community service obligation payments to Renewal SA in 2016–17 to ensure a commercial income stream is generated from the TAFE SA properties being purchased by Renewal SA.

– higher grants and subsidies expense in the South Australian Tourism Commission (SATC) in 2015–16 reflecting the transfer of the functions of the South Australian Motor Sport Board (SAMSB) to the SATC in 2015–16. From 2016–17 onwards the functions of the previous SAMSB are funded through appropriation rather than grants and subsidies.

– higher refunds and remissions in 2015–16 reflecting the payment of ex-gratia relief while legislation was being passed relating to a number of the government’s tax reform measures introduced in the 2015–16 Budget.



• other payments:

– higher payments to the Department of Primary Industries and Regions in 2015–16 reflecting the Farm Finance Concessional Loan Scheme

• lower equity contributions to the South Australian Housing Trust in 2016–17 are in line with Commonwealth revenues associated with the National Partnership Agreement for Remote Indigenous Housing.

Statement of cash flows — other accounts Operating Activities

Receipts


• grants and subsidies—an increase in receipts is due to increased payments from the Commonwealth primarily for scheduled transport infrastructure (primarily the Northern Connector, South Road Darlington upgrade and Goodwood and Torrens rail junctions projects).

• other receipts—an increase in receipts is due to an increase in SA Water licence fees paid to the Essential Services Commission of South Australia.

Payments


• intra government transfers—an increase in payments is primarily due to increased payments for scheduled transport infrastructure (primarily the Northern Connector, South Road Darlington upgrade and Goodwood and Torrens rail junctions projects ). An increase in the SA Water licence payment further contributes to this variance.



Accounting standards

The financial statements included in the 2016–17 Agency Statements are special purpose financial statements.

Estimates in these financial statements have been prepared on a basis consistent with:

• Australian Accounting Standards, except where these notes indicate otherwise

• accounting policies expected to be used in preparing historically orientated general purpose financial statements for that year, and the same accounting policies have been used for the subsequent forecast years (forward estimates).

Reporting entities

The financial statements include all estimated assets, liabilities, incomes and expenses of individual agencies.

Consistent with Australian Accounting Standards, estimated transactions and balances that are controlled are budgeted for, and reported on, separately to estimated transactions and balances which are administered but not controlled by the agency.

Activities that are ‘controlled’ are those where the agency delivers services and governs the financial and operating policies so as to obtain benefits from these activities and assets in the pursuit of its objectives.

Generally, activities that are ‘administered’ are those where the agency provides a service or function on behalf of the Minister and is unable to use the resources for the furtherance of its own objectives.

Basis of accounting and measurement

The estimated financial statements include a statement of comprehensive income, statement of financial position and a statement of cash flows.

The format of these estimated financial statements is consistent with the model financial statements (prepared by the Department of Treasury and Finance for statutory reporting requirements) and is consistent with the requirements of AASB 101 Presentation of Financial Statements and AASB 107 Statement of Cash Flows.

The accrual basis of accounting has been applied in the preparation of the estimated financial statements whereby estimated assets, liabilities, equity, incomes and expenses are recognised in the reporting period to which they relate, regardless of when cash is received or paid.

Assets

Most government assets are valued at their written-down current cost. Otherwise agencies adopt one of the following measurement bases:

• fair value — is the price that would be received to sell an asset in an orderly transaction between market participants at measurement date.


• market value — amount that uses prices and other relevant information generated by market transactions involving identical or comparable assets.

• current cost — amount that would be required currently to replace the service capacity of an asset.

All non-current tangible assets, with a cost of acquisition greater than $1.0 million and a useful life of more than three years, are required to be valued at fair value unless excluded from the scope of Australian Accounting Standard AASB 116 Property, Plant and Equipment and/or an alternative valuation is specified by another accounting standard.

All intangible assets are measured at cost.

Depreciation and amortisation All non-current assets having limited useful lives are systematically depreciated over their useful lives in a manner that reflects the consumption of their service potential. The most common method used for calculating depreciation expense is the straight line method.

Certain heritage assets have very long and indeterminate useful lives. Their service potential has not, in any material sense, been consumed during the reporting period. As such, no amount for depreciation has been recognised in respect of those assets.

Assets acquired under finance leases are depreciated/amortised over the period during which the government is expected to benefit from use of the leased asset.

Employee benefits Employee benefits (including salaries and wages, annual leave, long service leave, skills and experience retention leave, sick leave and superannuation benefits) reflect those benefits accrued as a result of services provided by employees up to the reporting date.

Short-term employee benefits (expected to be settled within 12 months after the end of the reporting period in which the employee rendered the services) are measured at a nominal amount based on the remuneration rates an agency expects to pay. Examples of short-term employee benefits include salaries and wages and annual leave.

Long-term employee benefits (other than short-term) are measured at the present value of estimated future cash flows. An example of a long-term employee benefit is long service leave.

Sick leave For the majority of agencies, no liability will be recognised for sick leave.

There is no liability for non-vesting sick leave (a non-vesting entitlement is that which does not constitute a legal obligation of the employing agency until a valid claim is made by an employee or an event has occurred) if, on average, sick leave taken is less than total entitlements accruing.

Vesting sick leave entitlements are rare for state government employees.

Superannuation For most state government controlled agencies, the Treasurer assumes the accrued superannuation liability in return for periodic payments from agencies. Therefore, unless there are contributions due but not yet paid at the reporting date, there is no superannuation liability recorded for the agency.

Accounting Standards


Two types of superannuation plans are in operation currently in the public sector: defined benefit plans and defined contribution plans. In a defined benefit plan, a member’s entitlement is determined by reference to a formula based on years of membership and/or salary levels. In a defined contribution plan, a member’s entitlement is determined by reference to accumulated contributions made to the plan together with investment earnings thereon.

Under existing arrangements, the Treasurer is liable for any net deficiency in assets for the defined benefits plans. Deficits in defined benefit superannuation plans are recognised as liabilities in the statement of financial position for the Treasurer. The deficits are measured as the excess of employees’ accrued benefits resulting from services up to the reporting date over the fair value of the plan’s assets as at the reporting date.

Income recognition

Wherever possible, income is recognised when the transaction or event giving rise to the income occurs. As a result, all items of income are normally reported in the statement of comprehensive income when an agency obtains control over the respective amounts. In circumstances where it is not possible to determine objectively when control over the asset passes to the agency, the amounts are recognised upon receipt.

Appropriation The investment program requirements for agencies included in the agency statements may be funded through operating appropriation, operating receipts, the proceeds of asset sales, grants and through Commonwealth payments. Where the investment requirements of an agency are not funded from these sources, the state government funding of an agency’s investment program will generally be treated as an equity contribution from the government, as representative owner. These contributions are treated as contributions to equity rather than income in an agency.

Funds appropriated, but not required to meet current year cash outflows will be deposited with the Treasurer and will show as an asset in the agency’s statement of financial position.

Cash alignment policy

Where agencies have returned excess cash held to the Treasurer in accordance with the cash alignment policy, the payment is generally recorded as a ‘payment to government’ in the statement of comprehensive income. Some agencies have elected to repay debt or return contributed capital with excess cash balances. These transactions will be reflected in the statement of financial position.

Rounding

All estimated amounts in the financial statements have been rounded to the nearest thousand dollars, unless otherwise indicated.

Due to rounding, there may be instances where estimated financial statements and tables do not add correctly.

Accounting Standards


www.statebudget.sa.gov.au2016 17 State Budget

www.statebudget.sa.gov.au

Department of Treasury and Finance

State Administration Centre 200 Victoria Square, Adelaide South Australia, 5000

GPO Box 1045, Adelaide South Australia, 5001

Telephone: +61 (08) 8226 9500 www.treasury.sa.gov.au

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