2018-19 budget paper 2 - chapter 12 - department of ... · web viewthe department of treasury and...

12 DEPARTMENT OF TREASURY AND FINANCE

AGENCY OUTLINEThe Department of Treasury and Finance is responsible to the Treasurer, Hon Peter Gutwein MP.Treasury has responsibility for implementing strategies to achieve the Government’s longer-term economic and fiscal objectives. It provides the Government with objective advice on the economic and financial management of the State, implements Government policy and performs financial analysis, monitoring and reporting functions on behalf of the Government.Treasury undertakes various functions associated with State economic and financial management, including: monitoring and analysing trends in economic conditions and forecasting economic

parameters for Tasmania; preparing and monitoring the State Budget, managing the Public Account and

providing advice on financial and resource management in the public sector taking into account the Government’s strategies and priorities;

monitoring and providing advice on the performance and management of government businesses;

managing the Government’s office accommodation portfolio, managing insurable risks of agencies, managing property sales and whole-of-government procurement;

providing policy advice on regulatory and financial issues, intergovernmental financial relations and State taxation issues and State taxation collection on behalf of the Commissioner of State Revenue; and

supporting the Tasmanian Economic Regulator, the State Grants Commission, the Tasmanian Liquor and Gaming Commission, the Commissioner for Licensing, the Commissioner of State Revenue and the Superannuation Commission to carry out their statutory, regulatory and integrity functions.

This chapter provides the Department’s financial information for 2018-19 and over the Forward Estimates period (2019-20 to 2021-22). Further information on the Department is provided at www.treasury.tas.gov.au.

Treasury and Finance 331

KEY DELIVERABLESTable 12.1 provides a summary of the Budget and Forward Estimates for key deliverables.

Table 12.1: Key Deliverables Statement 2018-19

Budget

2019-20ForwardEstimate



$'000 $'000 $'000 $'000

Commonwealth Grants Commission 2020 Methodology Review

569 330 .... ....

Energy Markets Review 763 795 829 ....Energy on Farms1 1 500 2 000 2 000 ....Extension of Energy Rebate Scheme1 8 000 2 000 .... ....Future Gaming Market Implementation 427 445 465 ....Metro Tasmania - Derwent River Ferry Service1 500 500 500 500Metro Tasmania - Single Ticket Scheme1 3 500 3 500 250 250Tasmanian Irrigation - Tranche 3 Program1 .... 5 000 15 000 25 000TasRail Contribution1 .... 14 950 14 950 14 950TasWater Contribution1 20 000 20 000 20 000 20 000

Note:1. These Key Deliverables will be funded by Finance-General.

Commonwealth Grants Commission 2020 Methodology ReviewThe Goods and Services Tax is distributed to the States on the basis of Horizontal Fiscal Equalisation, which is administered by the Commonwealth Grants Commission. Every five years, the CGC conducts a comprehensive review of its methodology. Changes in the CGC’s methodology have the potential to reallocate millions of dollars of GST between jurisdictions. The opportunity to actively participate in the review is critically important for the State, with GST being the largest single revenue source for Tasmania, providing 40 per cent of Tasmania’s revenue in 2017-18. The 2020 Methodology Review is wide ranging and resource intensive. In order to minimise the risks to Tasmania from any changes to the distribution methodology, a dedicated project team has been established in Treasury to respond to the 2020 Methodology Review. The Methodology Review will be completed by February 2020.The project team has also prepared the State’s submission to the Productivity Commission inquiry into Australia’s System of Horizontal Fiscal Equalisation, which is examining a number of options for changing the GST distribution process. The Methodology Review and the Productivity Commission inquiry are being run concurrently, but separately.

332 Treasury and Finance

Energy Markets Review The Government is committed to delivering the lowest regulated electricity prices in the nation by 2022. As part of the Government’s overall strategy in regard to energy pricing, Treasury will be developing the policy to delink the Tasmanian regulated wholesale electricity pricing mechanism from volatility in the Victorian wholesale market as well as reviewing a number of other energy market policies. This includes a review of solar feed-in tariff and irrigation tariff arrangements.

Energy on FarmsEquity contributions totalling $5.5 million over three years will be provided to Tasmanian Irrigation Pty Ltd to construct mini and micro hydro-electric systems as part of the irrigation system network.

Extension of Energy Rebate SchemeThe Government is extending the Energy Rebate Scheme for large unregulated electricity customers for another 12 months. The aim of the Scheme is to cushion customers from the impact of continuing high wholesale electricity prices in the National Electricity Market. A total of $10 million is being allocated to meet the cost of the rebates that will be incurred in the 2018-19 year.

Future Gaming Market Implementation The Government’s Future Gaming policy will see the Deed between the State and the Federal Group, for exclusivity in the conduct of casino operations, electronic gaming machines and keno, end in 2023. Post-2023, the operation of gaming machines in hotels and clubs will move from a single licensed operator to individual venue licences. Additional high-roller casino licences will be issued and a different distribution of the revenues from the relevant gaming activities will also occur.There are a number of tasks that must be completed before the end of the Deed to implement the Government’s policy, including consultation with stakeholders in relation to the proposed framework, and revised taxation and licensing arrangements for existing casinos, high-roller casino(s) and individual venues. The changes will require legislative amendment to the Gaming Control Act 1993, a public tender process for the rights to operate the gaming machine monitoring network in hotels and clubs and the development and implementation of a regulatory regime to support the new gaming environment. A dedicated project team will be established in Treasury to undertake the complex and diverse range of tasks required to implement the new gaming environment.

Metro Tasmania - Derwent River Ferry ServiceGrant funding of $500 000 has been allocated for Metro Tasmania Pty Ltd in 2018-19 for a preliminary study to inform the introduction of a Derwent River ferry


service. From 2019-20 onwards $500 000 per annum of equity contributions has been allocated to Metro Tasmania Pty Ltd to support establishment of the service.

Metro Tasmania - Single Ticket SchemeFunding totalling $7.5 million over the Budget and Forward Estimates is being provided to assist Metro Tasmania Pty Ltd with the upgrades required to its systems and infrastructure, as part of the introduction of a common ticketing system for all Tasmanian public passenger transport services, allowing passengers to use a range of passenger transport systems on a single ticket.

Tasmanian Irrigation - Tranche 3 ProgramAs part of the Government’s Tranche 3 Irrigation - taking agriculture to the next level election policy, an additional $70 million has been allocated to a third tranche of irrigation schemes. A total of $45 million has been allocated over the Budget and the Forward Estimates period.

TasRail ContributionEquity contributions of $14.95 million per annum in 2019-20, 2020-21 and 2021-22 will be provided to Tasmanian Railway Pty Ltd for the rail revitalisation project across the State, including replacing life-expired assets, strengthening culverts and other upgrades to rail lines and bridges. The funding is the second stage of the Rail Infrastructure Investment Program, with the State receiving matching funding from the Australian Government.

TasWater ContributionDuring 2018-19, Treasury will assist the Government with its plans for further reform of the Tasmanian water and sewerage industry, including enabling the State to become a part owner of TasWater.The focus for 2018-19 will include: preparing legislation for the Spring Session of 2018 to give effect to the shared

ownership of TasWater by the State and Local Government and to changed governance arrangements;

working with TasWater and the owner councils on the company’s governance framework, to recognise the State’s interest in TasWater;

developing an agreement with TasWater, in relation to the annual $20 million contribution from the State to TasWater over a ten year period from 2018-19, to implement an accelerated infrastructure investment program; and

working with TasWater to deliver the cap on water and sewerage price increases.

Financial Management Act ImplementationThe Financial Management Act 2016 was passed by Parliament during 2016 and will apply from 1 July 2019. On that date, the FMA will replace the existing


Financial Management and Audit Act 1990 and the Public Account Act 1986 and represents the last major step in an ongoing reform to Tasmania’s financial management framework. The implementation of the FMA is well progressed but has been delayed due to competing commitments, including those associated with the implementation of the new Budget Information Management System, and to provide sufficient time to communicate and engage with stakeholders. During 2018-19, Treasury will finalise key elements of the transition to the FMA and undertake further consultation to ensure the successful implementation of what is a significant reform to the Government’s financial management framework.


Tax Reform MeasuresTreasury has prepared legislation to enact the Government’s election commitments to introduce a range of tax measures. The State Revenue Office will implement the measures including establishing the necessary administrative arrangements. The tax measures to be implemented include: extending the Payroll Tax Rebate Scheme for apprentices and trainees in areas of

skills shortages, to 30 June 2021; introducing a reduced rate of payroll tax for wages between $1.25 million and $2

million; providing a three year payroll tax exemption for wages paid by a business to its

employees in regional Tasmania, where an interstate business relocates to Tasmania and establishes its operations in a regional area;

providing a 50 per cent duty discount to first home buyers of established homes valued at up to and including $400 000, for an initial twelve month period;

providing a 50 per cent duty discount to eligible pensioners that sell their existing home and downsize to a new home or unit at a lower cost, for an initial twelve month period;

implementing a Foreign Investor Duty Surcharge of an additional three per cent of the dutiable value for all purchases of residential property by foreign residents and an additional half per cent of the dutiable value on all purchases of primary production land by foreign residents; and

providing a three year land tax exemption for all newly built housing that is made available for long-term rental.

In addition, Treasury has prepared legislation to enact additional tax measures that were announced by the Government following the 2018 election, including: providing a one year land tax exemption for short stay accommodation properties

that are made available for long-term rental accommodation within the Greater Hobart Area, which was announced following the Housing Summit held on 15 March 2018; and

extending the First Home Owner Grant of $20 000 for eligible first home buyers of newly constructed homes, those who have new homes constructed, and owner builders from 1 July 2018 to 30 June 2019 inclusive.


OUTPUT INFORMATIONOutputs of the Department of Treasury and Finance are provided under the following Output Groups: Output Group 1 - Financial and Resource Management Services; Output Group 2 - Economic and Fiscal Policy Advice; Output Group 3 - Revenue, Superannuation and Regulatory Management Services;

and Output Group 4 - Community Assistance.Table 12.2 provides an Output Group Expense Summary for the Department.


Table 12.2: Output Group Expense Summary1

2017-18 2018-19 2019-20 2020-21 2021-22 Forward Forward Forward

Budget Budget Estimate Estimate Estimate $'000 $'000 $'000 $'000 $'000

Treasurer

Output Group 1 - Financial and ResourceManagement Services1.1 Budget Development and Management 2 561 2 787 2 785 2 839 2 969 1.2 Financial Management and Accounting Services 3 377 3 899 3 930 3 972 4 154 1.3 Shareholder Advice on Government Businesses2 2 421 3 085 3 192 3 253 2 953 1.4 Government Property and Accommodation Services 1 356 1 475 1 247 1 269 1 329 1.5 Government Procurement Services 2 458 2 670 2 725 2 771 2 834

12 173 13 916 13 879 14 104 14 239 Output Group 2 - Economic and Fiscal Policy Advice

2.1 Economic Policy Advice 1 940 1 413 1 349 1 371 1 437 2.2 Regulatory Policy 2 505 3 066 3 149 3 309 3 468 2.3 Intergovernmental Financial Matters3 1 328 1 719 1 510 1 313 1 375

5 773 6 198 6 008 5 993 6 280 Output Group 3 - Revenue, Superannuation and

Regulatory Management Services3.1 Tax Administration and Revenue Collection 9 227 9 330 9 420 9 569 10 001 3.2 Regulation and Administration of Liquor and Gaming4 6 423 7 227 7 471 7 474 7 297 3.3 Economic Regulation5 2 041 1 944 1 994 2 305 2 090 3.4 Office of the Superannuation Commission6 17 338 14 569 14 721 14 824 15 066

35 029 33 070 33 606 34 172 34 454 Output Group 4 - Community Assistance

4.1 Bass Strait Islands Community Service Obligation 10 049 10 240 10 471 10 706 10 946 4.2 Public Trustee Community Service Obligation 2 023 2 068 2 115 2 162 2 210 4.3 Community Support Levy 4 375 3 983 4 178 4 474 3 956

16 447 16 291 16 764 17 342 17 112

TOTAL 69 422 69 475 70 257 71 611 72 085

Notes:1. Agency estimates do not include the indexation impact of any variations to agency expenditure that

have been made since the finalisation of the Revised Estimates Report 2017-18 (including December Quarterly Report). For further information see chapter 1 of this Budget Paper.


2. The increase in Shareholder Advice on Government Businesses in 2018-19 to 2020-21 is due to the establishment of a dedicated project team for the Energy Markets Review project.

3. The increase in Intergovernmental Financial Matters in 2018-19 to 2019-20 is due to the Commonwealth Grants Commission 2020 Methodology Review.

4. The increase in Regulation and Administration of Liquor and Gaming in 2018-19 to 2020-21 is due to the establishment of a dedicated project team for the Future Gaming Markets Implementation Project.

5. The fluctuations in expenditure on Economic Regulation reflect the work program of the Tasmanian Economic Regulator. Water and sewerage pricing investigations are being undertaken in 2017-18 and scheduled for 2020-21.

6. The decrease in Office of the Superannuation Commission in 2018-19 is due the reallocation of resources across other Outputs of Treasury responsible for specific functions to support the Office and to resource the Government’s priority projects to be undertaken by Treasury over the Budget and Forward Estimates period.

Output Group 1: Financial and Resource Management Services

1.1 Budget Development and ManagementThis Output includes management of the State Budget process, the provision of advice on budgetary issues and monitoring of the State’s financial performance against the Government’s Fiscal Strategy.

1.2 Financial Management and Accounting ServicesThis Output includes whole-of-government financial management activities and the provision of advice on financial management and reform, consistent with the Government’s strategies and priorities. It supports a range of services relating to the management of financial assets and liabilities, associated risk mitigation strategies and the preparation of whole-of-government financial and statistical reports.

1.3 Shareholder Advice on Government BusinessesThis Output includes monitoring and provision of advice on government businesses. It supports the provision of advice on reforms and policies relating to the Government’s ownership of businesses. Submissions and presentations to the credit rating agencies are included in this Output.

1.4 Government Property and Accommodation ServicesThis Output covers the administration of Government property and accommodation services, including the management of government-owned and leased office buildings and the disposal of surplus Crown property.

1.5 Government Procurement ServicesThis Output includes the provision of advice in relation to Government procurement activities and the administration of whole-of-government contracts and the Tasmanian Risk Management Fund.


Table 12.3: Performance Information - Output Group 1

Performance MeasureUnit of

Measure2015-16

Actual2016-17

Actual2017-18

Target2018-19

Target

Stakeholder satisfaction rating (expressed as a percentage)1 % na na >90 na

Proportion of financial reports receiving an unqualified audit opinion2 % 100 100 100 100

Treasury-managed property vacancy rate3 % 5.5 2.6 <1.5 <1.5State Service workers’ compensation

contributions as a percentage of the average premium charged by private insurers4 % 84 90 <80 <90

Proportion of financial reports published by the required date5 % 100 100 100 100

Variance between Budget estimate and actual GBE/SOC returns6 % 2.5 14.1 <5.0 <5.0

Notes:1. The satisfaction rating of the quality of Treasury’s services is obtained from the results of Treasury’s

Stakeholder Survey. Treasury’s Stakeholder Survey is undertaken every three years, with the previous survey conducted in 2015. The next stakeholder survey will be completed in 2018.

2. An unqualified audit opinion from the Auditor-General indicates that the financial reports are a true and accurate reflection of the Government’s finances.

3. The vacancy rate is the proportion of all owned and leased office space managed by Treasury that is currently vacant and available for occupation. The target was slightly exceeded for 2016-17 primarily as a result of continuing vacancy at the Stoney Rise and St John Street buildings.

4. This measure is calculated by comparing average agency workers’ compensation contributions, as a proportion of salaries, with the average premium rate of private insurers. The measure can be subject to significant fluctuation from year to year due to the significant range of factors impacting on both agency and private insurance premiums. The target for 2018-19 has been changed to better reflect current trends.

5. The whole-of-government financial reports published in 2016-17 were the Preliminary Outcomes Report 2015-16, Treasurer’s Annual Financial Report 2015-16, September Quarterly Report 2016-17, December Quarterly Report 2016-17 and the March Quarterly Report 2016-17.

6. Returns from Government Businesses and State-owned Companies comprise dividends, tax equivalent payments, rate equivalent payments and guarantee fees. The positive variances to the Budget estimates is due to better than expected performance of a number of government businesses, largely due to external influences resulting in increased profitability.


Output Group 2: Economic and Fiscal Policy Advice

2.1 Economic Policy AdviceThis Output relates to the provision of advice on international, national and Tasmanian economic conditions and developments and forecasting economic trends in the Tasmanian economy. It also includes the provision of advice on economic policy and reform issues, including reform of Tasmania’s water and sewerage industry, and Council of Australian Governments and other national economic policy initiatives.

2.2 Regulatory PolicyThis Output includes the provision of advice relating to the regulation and taxation of gaming activities and regulation and licensing of liquor sales, state revenue policy and the legislative review program.

2.3 Intergovernmental Financial MattersThis Output relates to the provision of advice on all intergovernmental financial matters, including support to the State Grants Commission.


Performance MeasureUnit of

Measure2015-16

Actual2016-17

Actual2017-18

Target2018-19

Target


Variance between Budget estimate and actual taxation receipts2 % 4.0 4.5 <5.0 <5.0

Variance between Budget estimate and actual Australian Government payments3 % 1.7 20.2 <5.0 <5.0

Variance between Budget forecast and ABS estimate of Gross State Product growth4 % pts 1.2 1.1 <1.0 <1.0

Variance between Budget forecast and ABS estimate of employment growth4 % pts 0.8 .... <1.0 <1.0

Notes:1. The satisfaction rating of the quality of Treasury’s services is obtained from the results of Treasury’s


2. The accuracy of the Department’s taxation receipt forecasts is determined by comparing the Budget with the actual end of year outcome. The information published in Treasury’s 2016-17 Annual Report was based on the preliminary outcome and has been revised to reflect the final audited outcome.


3. The accuracy of the Department’s Australian Government payments is determined by comparing the State Budget estimate in the financial year with actual payment advices received from the Australian Government. The primary reason for not meeting the identified target for 2016-17 was the unexpected one-off Australian Government payment of $730.4 million for the transfer of the Mersey Community Hospital to the State. The information published in Treasury’s 2016-17 Annual Report was based on the preliminary outcome and has been revised to reflect the final audited outcome.

4. The accuracy of Treasury’s Gross State Product and employment growth forecasts is determined by comparing the Budget forecasts with the most recent estimates of growth for the financial year published by the Australian Bureau of Statistics. For growth in Gross State Product in 2016-17, Treasury’s forecast in the 2016-17 Budget was greater than the most recent estimate by the ABS for that year and this variance will be revised if the ABS revises its estimate for 2016-17. For employment growth in 2016-17, there was zero variance (at the one decimal point level) between the 2016-17 Budget forecast and the ABS estimate.


Output Group 3: Revenue, Superannuation and Regulatory Management Services

3.1 Tax Administration and Revenue CollectionThis Output comprises the administration of taxation legislation and the collection of State revenue, including monitoring the compliance of taxpayers with State revenue legislation. It also includes the administration of various grants, subsidies and concessions to the Tasmanian community.

3.2 Regulation and Administration of Liquor and GamingThis Output provides for the regulation and control of liquor licensing, casino gaming, gaming machines, internet gaming, Keno, minor gaming, betting exchanges and totalizators. It includes the provision of support to the Tasmanian Liquor and Gaming Commission in the discharge of its statutory functions under Liquor Licensing and Gaming Control Acts and to the Commissioner for Licensing in discharging the Commissioner’s statutory functions under the Liquor Licensing Act 1990.

3.3 Economic RegulationThis Output comprises provision of support to the Tasmanian Economic Regulator in the exercise of its statutory functions, which include the regulation of the electricity and gas supply industries, the economic regulation of the water and sewerage sector and the undertaking of independent pricing reviews on behalf of the Government.

3.4 Office of the Superannuation CommissionThis Output comprises provision of support to the Superannuation Commission in undertaking statutory functions under the Public Sector Superannuation Reform Act 2016; the Public Sector Superannuation Reform Regulations 2017; and the Public Sector Superannuation Reform (Parliamentary Superannuation) Regulations 2016. Under the public sector reforms, the operating costs of administering the five public sector defined benefit schemes are funded directly by appropriation to Treasury, rather than through operating expenses being charged directly against scheme assets.



Performance Measure1

Unit of Measure

2015-16Actual

2016-17Actual

2017-18Target

2018-19Target


Total overdue taxation debt as a percentage of total taxation revenue3 % 1.4 1.0 <0.8 <0.8

Percentage of formal recommendations accepted by the Tasmanian Liquor and Gaming Commission4 % 98 86 >80 >80

Percentage of objections in which the Commissioner of State Revenue’s assessment or decision was confirmed5 % 63 65 >80 >80

Revenue Branch operating expenses as a percentage of taxation revenue6 % 0.9 0.9 <1.5 <1.5

Percentage of liquor applications submitted to the Commissioner for Licensing within 40 days of advertising7 % 100 100 >80 >95

Notes:1. In 2018-19, Treasury will review its performance information presented in the Budget Papers and

include appropriate indicators for the Office of the Superannuation Commission.2. The satisfaction rating of the quality of Treasury’s services is obtained from the results of Treasury’s


3. The State Revenue Office seeks to ensure that taxpayers are well informed of their obligations and that tax debt stress and overdue taxation debts are minimised. Accordingly, the target is for overdue taxation debt to be a very small percentage of total taxation revenue. The proportions of debt in recent years have been influenced by better identification of overdue debt through systems improvements and a more streamlined and consistent process for moving unpaid amounts through to a debtor management process.

4. While recognising that the Tasmanian Liquor and Gaming Commission is an independent statutory body, a measure of the quality of the services provided is the proportion of all formal recommendations contained in decision papers that are accepted by the Commission.

5. Objections may be lodged against assessments issued to clients or decisions of the Commissioner, Deputy Commissioner or a delegate of the Commissioner. Treasury seeks to ensure that the original assessments and decisions are accurate. The lower level of assessments or decisions of the Commissioner of State Revenue that have been confirmed on objection in the 2016-17 year is a result of a significant decrease in the number of objections that have been treated as valid. That is, only objections with valid grounds have been dealt with via the objection process. Invalid objections have an alternative process and have been excluded from this result.

6. An indication of the efficiency of the revenue management services provided by the Department can be gained by comparing total taxation revenue collected with the operating costs required to administer and collect that revenue.

7. Treasury assisted the Commissioner for Licensing by receiving applications for licences, undertaking investigations and providing recommendations to the Commissioner on whether a licence applicant is qualified in accordance with the requirements of the Liquor Licensing Act.


Output Group 4: Community Assistance4.1 Bass Strait Islands Community Service Obligation

This Output comprises the payment of the Bass Strait Islands Community Service Obligation to Hydro Tasmania relating to the subsidised supply of electricity and pensioner concessions to electricity customers on King and Flinders Islands.

4.2 Public Trustee Community Service Obligation This Output comprises the payment of the Community Service Obligation to the Public Trustee relating to the provision of trustee services to clients with low asset values.

4.3 Community Support LevyThis Output comprises the collection and disbursement of funds from the Community Support Levy.


CAPITAL INVESTMENT PROGRAMTable 12.6 provides financial information for the Department’s Capital Investment Program. Further information on the Capital Investment Program is provided in chapter 6 of The Budget Budget Paper No 1.

Table 12.6: Capital Investment ProgramEstimate

d 2018-19 2019-20 2020-21 2021-22 Total Forward Forward Forward Cost Budget Estimate Estimate Estimate

$'000 $'000 $'000 $'000 $'000

Existing Commitments

TreasurerBudget Information Management System Project 7 517 1 500 .... .... ....

Total CIP Allocations 1 500 .... .... ....

Budget Information Management System ProjectIn April 2018, Treasury released a new Budget Information Management System, delivering contemporary technology to all Government agencies in support of developing and managing the 2018-19 State Budget and associated functions. The release of BIMS follows extensive planning and development work that has been undertaken over a number of years. The new BIMS provides improved flexibility and adaptability and the solution will provide more responsive budget functions and enable the development of more efficient business processes and improved productivity. Annual Budget Papers, Revised Estimate Reports and budget monitoring and development advice to the Treasurer will all be supported by enhanced information management provided by the new system. With the core of the system in place, the last phase of the Project to be undertaken in 2018-19 will focus on implementing a range of new features including additional reporting, the development of dashboard technology and new business intelligence functions. These improvements will continue to build on useability features and increased access to the underlying budget data.


DETAILED BUDGET STATEMENTSTable 12.7: Statement of Comprehensive Income



Revenue and other income from transactions

Appropriation revenue - recurrent 58 748 58 547 59 015 59 875 60 964 Appropriation revenue - works & services1 2 900 1 500 .... .... .... Grants 235 .... .... .... .... Fees and fines 8 889 8 625 8 618 8 916 8 709 Other revenue 1 420 1 861 1 608 1 621 1 636

Total revenue and other income from transactions 72 192 70 533 69 241 70 412 71 309

Expenses from transactionsEmployee benefits 32 734 34 983 35 543 36 151 37 303 Depreciation and amortisation 1 170 1 132 1 165 1 049 961 Supplies and consumables2 11 889 9 408 9 323 9 905 9 042 Grants and subsidies 16 132 16 193 16 466 16 744 17 014 Other expenses 7 497 7 759 7 760 7 762 7 765

Total expenses from transactions 69 422 69 475 70 257 71 611 72 085

Net result from transactions (net operating balance) 2 770 1 058 (1 016) (1 199) (776)

Net result 2 770 1 058 (1 016) (1 199) (776)

Comprehensive result 2 770 1 058 (1 016) (1 199) (776)

Notes:1. The decrease in Appropriation revenue - works & services reflects the timing of Capital Investment

funding. 2. The decrease in Supplies and consumables in 2018-19 reflects the reallocation of resources from the

Office of the Superannuation Commission to resource the Government’s priority projects to be undertaken by Treasury.


Table 12.8: Statement of Comprehensive Income - Administered



Revenue and other income from transactions

Fees and fines 1 469 1 502 1 531 1 559 1 588 Total revenue and other income from transactions 1 469 1 502 1 531 1 559 1 588

Expenses from transactionsTransfers to the Consolidated Fund 1 469 1 502 1 531 1 559 1 588

Total expenses from transactions 1 469 1 502 1 531 1 559 1 588

Net result from transactions (net operating balance) .... .... .... .... ....

Net result .... .... .... .... ....

Comprehensive result .... .... .... .... ....


Table 12.9: Revenue from Appropriation by Output2017-18 2018-19 2019-20 2020-21 2021-22

Forward Forward Forward Budget Budget Estimate Estimate Estimate

$'000 $'000 $'000 $'000 $'000

Treasurer

Output Group 1 - Financial and ResourceManagement Services1.1 Budget Development and Management 2 494 2 585 2 558 2 623 2 746 1.2 Financial Management and Accounting Services 3 186 3 649 3 645 3 705 3 878 1.3 Shareholder Advice on Government Businesses 2 261 2 874 2 955 3 032 2 728 1.4 Government Property and Accommodation Services 816 1 058 1 082 1 106 1 161

8 757 10 166 10 240 10 466 10 513 Output Group 2 - Economic and Fiscal Policy Advice

2.1 Economic Policy Advice 1 905 1 362 1 287 1 316 1 379 2.2 Regulatory Policy 2 435 2 944 3 000 3 177 3 329 2.3 Intergovernmental Financial Matters 1 298 1 671 1 451 1 261 1 321

5 638 5 977 5 738 5 754 6 029 Output Group 3 - Revenue, Superannuation and

Regulatory Management Services3.1 Tax Administration and Revenue Collection 8 984 9 006 9 035 9 225 9 649 3.2 Regulation and Administration of Liquor and Gaming 5 921 6 680 6 862 6 892 6 692 3.4 Office of the Superannuation Commission 17 376 14 410 14 554 14 670 14 925

32 281 30 096 30 451 30 787 31 266 Output Group 4 - Community Assistance

4.1 Bass Strait Islands Community Service Obligation 10 049 10 240 10 471 10 706 10 946 4.2 Public Trustee Community Service Obligation 2 023 2 068 2 115 2 162 2 210

12 072 12 308 12 586 12 868 13 156

Capital Investment Program 2 900 1 500 .... .... ....

Department of Treasury and FinanceTotal Recurrent Services 58 748 58 547 59 015 59 875 60 964 Total Works and Services 2 900 1 500 .... .... ....

61 648 60 047 59 015 59 875 60 964

Total Revenue from Appropriation 61 648 60 047 59 015 59 875 60 964


Controlled Revenue from Appropriation 61 648 60 047 59 015 59 875 60 964 61 648 60 047 59 015 59 875 60 964

Table 12.10: Statement of Financial Position as at 30 June2018 2019 2020 2021 2022


$'000 $'000 $'000 $'000 $'000

AssetsFinancial assets

Cash and deposits 4 638 6 572 7 067 7 198 7 795 Receivables 281 319 322 324 327 Other financial assets 478 679 688 697 706

5 397 7 570 8 077 8 219 8 828

Non-financial assetsProperty, plant and equipment1 804 1 373 1 330 1 303 1 275 Heritage and cultural assets 84 84 84 84 84 Intangibles2 9 438 10 061 9 059 8 156 7 345 Other assets1 424 649 653 658 660

10 750 12 167 11 126 10 201 9 364

Total assets 16 147 19 737 19 203 18 420 18 192

LiabilitiesPayables1 208 599 605 610 618 Employee benefits 7 663 7 757 8 232 8 641 9 179 Other liabilities 34 207 208 210 212

Total liabilities 7 905 8 563 9 045 9 461 10 009

Net assets (liabilities) 8 242 11 174 10 158 8 959 8 183

EquityAccumulated funds 8 242 11 174 10 158 8 959 8 183

Total equity 8 242 11 174 10 158 8 959 8 183

Notes:1. The increases in Property, plant and equipment, Other assets and Payables in 2019 reflect the

incorporation of the balances of assets and liabilities relating to the Office of the Superannuation Commission.

2. The increase in Intangibles in 2019 reflects the work-in-progress on the Budget Information Management System Project.

1.


Table 12.11: Statement of Cash Flows2017-18 2018-19 2019-20 2020-21 2021-22


$'000 $'000 $'000 $'000 $'000

Cash flows from operating activitiesCash inflows

Appropriation receipts - recurrent 58 748 58 547 59 015 59 875 60 964 Appropriation receipts - capital 2 900 1 500 .... .... .... Grants 235 .... .... .... .... Fees and fines 8 880 8 613 8 607 8 905 8 697 GST receipts 1 600 1 600 1 600 1 600 1 600 Other cash receipts 1 420 1 861 1 608 1 621 1 636

Total cash inflows 73 783 72 121 70 830 72 001 72 897

Cash outflowsEmployee benefits (28 692) (30 786) (31 060) (31 658) (32 398)Superannuation (3 821) (3 968) (4 008) (4 082) (4 365)GST payments (1 600) (1 600) (1 600) (1 600) (1 600)Grants and subsidies (16 132) (16 193) (16 466) (16 744) (17 014)Supplies and consumables (11 891) (9 407) (9 321) (9 904) (9 038)Other cash payments (7 497) (7 759) (7 760) (7 762) (7 765)

Total cash outflows (69 633) (69 713) (70 215) (71 750) (72 180)

Net cash from (used by) operating activities 4 150 2 408 615 251 717

Cash flows from investing activitiesPayments for acquisition of non-financial assets (3 844) (1 620) (120) (120) (120)

Net cash from (used by) investing activities (3 844) (1 620) (120) (120) (120)

Net increase (decrease) in cash and cash equivalents

held 306 788 495 131 597

Cash and deposits at the beginning of the reporting

period 4 332 5 784 6 572 7 067 7 198 Cash and deposits at the end of the reporting period 4 638 6 572 7 067 7 198 7 795


Table 12.12: Statement of Cash Flows - Administered2017-18 2018-19 2019-20 2020-21 2021-22


$'000 $'000 $'000 $'000 $'000

Cash flows from operating activitiesCash inflows

Fees and fines 1 469 1 502 1 531 1 559 1 588 Total cash inflows 1 469 1 502 1 531 1 559 1 588

Cash outflowsTransfers to the Consolidated Fund (1 469) (1 502) (1 531) (1 559) (1 588)

Total cash outflows (1 469) (1 502) (1 531) (1 559) (1 588)

Net increase (decrease) in cash and cash equivalents

held .... .... .... .... ....

Cash and deposits at the beginning of the reporting

period .... .... .... .... .... Cash and deposits at the end of the reporting period .... .... .... .... ....


2018-19 budget paper 2 - chapter 12 - department of ... · web viewthe department of treasury and...

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