Summary of our Finances

Highlights from 2006-07

The Financial Statements of the Department are comprised of two divisions – Treasury and Finance Division, and Finance-General Division. The Treasury and Finance Division is responsible for managing the resources of the Department to ensure that the Government’s economic and financial objectives are achieved, with the major expenditure item for the Treasury and Finance Division being employee entitlements (or salaries and wages).

Revenue and expenditure through the Finance-General Division generally reflects whole-of-government activities. These activities include the management of the Government’s financial assets and liabilities; accounting for State taxation receipts and Australian Government General Purpose Payments; meeting the Government’s pension and other superannuation commitments; the administration of the Tasmanian Risk Management Fund; the management of the Government’s light vehicle fleet and property portfolio; and transactions with Government businesses.

Two Sets of Financial Statements

We essentially prepare two sets of financial statements – one classified controlled comprising activities of the Treasury and Finance Division, which encompasses all funds through which the Department controls resources to carry on its functions, and another set of statements classified administered which encompasses all activities of the Finance-General Division which are administered on behalf of the Government (refer to Note 1 of the Financial Statements).

The largest section, which represents 82 per cent of total revenue, is Appropriation Revenue, which consists of the recurrent appropriation provided for the Department. This is followed by Sales of Goods and Services at 16 per cent of total revenue, which primarily consists of Community Support Levy receipts; contract management fees; liquor licensing revenues; and recoveries of gaming machine validation costs.

The largest expense item is Employee Entitlements, which represents 51 per cent of total expenses from ordinary activities or $21.8 million. At 27 per cent, Grants and Subsidies are also a large component of Departmental expenditure.

The largest component of administered revenue is Australian Government Grants, which represents 47 per cent of the total revenue. This is followed by State Taxation receipts at 22 per cent of administered revenue.

The largest expense item is Superannuation, which represents 61 per cent of total expenses or $607.3 million. This reflects the actuarial expense associated with the Unfunded Superannuation Liability. Following this is Grants and Subsidies, which represent 24 per cent of administered expenses. The more significant expenditure items included in this amount are the Special Capital Investment Fund grants; Local Government grants; First Home Owners grants; and the Tasmanian Community Forest Agreement.