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Budget Output 2.1: Economic policy advice
Budget Output 2.2: Fiscal policy and regulatory advice Regulatory changes to Pensioner Rates Remission Scheme During 2008–09, we introduced regulatory changes to extend the Pensioner Rates Remission Scheme, provided under the Local Government (Rates and Charges Remissions) Act 1991, to Australian Government Health Care Card holders. The State Government announced the extension of this scheme in the 2008–09 State Budget, to apply from 1 July 2008. Administrative arrangements were agreed with local government and operated until the regulatory changes came into effect. Commonwealth Grants Commission 2010 Review We provided input into the Commonwealth Grants Commission’s 2010 Review, which will determine the methods used for distributing GST revenue among the states from 2010. Tasmania’s contribution to the Review seeks to ensure that the State’s financial needs are recognised under these new methods. As part of the 2010 Review, the Commission released position papers on each of its assessment areas, indicating the position it intends to take with regard to how each assessment will be made. We provided written responses to the position papers to assist the Commission in further refining the assessment methods before they are finalised. Payroll Tax In 2009–10, we developed the Employment Incentives Scheme (Payroll Tax Rebate) Bill 2009. Payroll tax relief will be made available to all eligible employers liable for payroll tax, by way of a rebate on the payroll tax payable for any new positions created during the period from 11 June 2009 to 30 June 2010 that are maintained until 30 June 2011. Intergovernmental Agreement on Federal Financial Relations On 29 November 2008, COAG agreed to a new Intergovernmental Agreement on Federal Financial Relations. The IGA provides a framework which considerably reforms Commonwealth-State tied-funding arrangements. The IGA also covers the totality of Australian Government funding arrangements with the states, including rolling in the GST arrangements from the previous 1999 Intergovernmental Agreement. The reforms focus on improving the quality and responsiveness of government services by reducing Australian Government prescriptions on state service delivery. The framework also provides for clearer roles and responsibilities and outcome-based public accountability and is consistent with the broad direction for reform that we have been advocating for a considerable period. We supported the reform of tied-funding arrangements and the development of the IGA through:
National tax reform We developed the Government’s input to Australia’s Future Tax System (the Henry Review). Advice was provided on the content of the Tasmanian submissions to the Review, and we took part in conferences with other state and territory treasuries to develop tax policy priorities and areas of interstate cooperation. We also provided taxation policy advice to the Business Tax and Regulation Reference Group. Amendments to taxation legislation We developed legislation to abolish, from 1 July 2009, duty on agreements, which will simplify the treatment of duty on conditional and off-the-plan sales. We also developed the Taxation and Related Legislation (Miscellaneous Amendments) (No. 2) Act 2008, which made a raft of administrative amendments to the Duties Act 2001, the Land Tax Act 2000, the Payroll Tax Act 2008, the First Home Owner Grant Act 2000, the Taxation Administration Act 1997, the Land Titles Act 1980 and the Strata Titles Act 1998. Fire and ambulance service funding In August 2008, the Treasurer announced the establishment of a Review of Fire Service Funding. We provided secretariat support and advice to the Review of Fire Service Funding and provided representatives on the Review Panel. We provided recommendations to the Treasurer on the efficiency, equity and transparency of the funding model. Considerable work was devoted to consulting with local government, and liaising with the Valuer-General and Tasmania Fire Service. In addition, further advice was provided to the Treasurer regarding alternative options for funding the ambulance service on a sustainable basis. The Government has since ruled out an introduction of either a fee-for-service or levy for ambulance service funding. Regulating RBF under APRA The Premier announced on 14 October 2008 that he had asked the Treasurer, in consultation with the Retirement Benefits Fund Board, to undertake the necessary reform process for the RBF to become a regulated fund managed by the Australian Prudential Regulation Authority. Since that date, Branch staff have participated in a number of meetings involving Treasury, RBF Board and APRA staff to determine the various steps needed to be undertaken before lodging an application for RBF to become a regulated fund with APRA. Appointment of new state actuary In May 2008, we coordinated the tender process for the provision of actuarial services to Treasury, the Retirement Benefits Fund Board and other government agencies. The successful tenderer was Mercer (Australia) Pty Ltd and in October 2008 the Treasurer approved this appointment. Social and Economic Impact Study into Gambling in Tasmania We facilitated the review of the report by the South Australian Centre for Economic Studies that was released publicly on 22 July 2008. Following a consultation process including the Tasmanian Gaming Commission and other key stakeholders, we assisted in the development of a package of measures for consideration by Cabinet to further address problem gambling. We will facilitate the implementation of those measures requiring legislative amendment by developing changes to the Gaming Control Act 1993. It is expected that these measures will be introduced in the 2009 Spring Session of Parliament. Gaming Amendments We developed legislation to bring TOTE Tasmania under the regulatory framework of the Gaming Control Act 1993 and to facilitate licensing arrangements in the event that the TOTE is sold. The Gaming Control Amendment Act 2009 was passed by Parliament on 30 April 2009. We removed an impediment under the Racing (Totalizator Betting) Amendment Regulations 2009 that prevented the TOTE from having in place fixed odds betting rules with its new fixed odds and sports betting partner, Centrebet Pty Ltd. We prepared the Racing (Totalizator Betting) Amendment Regulations 2008 to enable TOTE Tasmania to participate in an international totalizator betting pool conducted by United States company Youbet.com Inc. We entered into a revenue sharing agreement with the Queensland Government following new lottery arrangements in Victoria that resulted in Tattersall’s ceasing to operate instant and non-bloc lotteries from 1 July 2008. Queensland operator Golden Casket now sells instant lottery tickets in Tasmania under a Tasmanian permit and Tasmania receives a share of the lottery tax revenue from the Queensland Government. Council for the Australian Federation submission into the Ken Henry ‘Australia’s Future Tax System Review’ On 10 December 2008, the ‘Henry Review’ Panel released a Retirement Income Consultation Paper and called for submissions by 27 February 2009. The Council for the Australian Federation represents all Australian State and Territory Governments and we provided input into the CAF submission to the ‘Henry Review’ in relation to its Retirement Income Consultation Paper. 2009 Productivity Commission Enquiry into Gaming We provided significant input into the Productivity Commission‘s inquiry into Australia’s gambling industries. The inquiry stems from a COAG decision on 3 July 2008 and is intended to provide policy recommendations on gambling for consideration by all Australian jurisdictions. The inquiry will help shape government action to tackle problem gambling and to minimise the prevalence of problem gambling in Australia. What next?
Budget Output 2.3: Market structures facilitation Water and sewerage reform In 2008–09, the Department’s primary role was to support and lead the implementation of structural and regulatory reforms endorsed by the Premier’s Local Government Council, and subsequently approved by Cabinet, in early 2008. With respect to the implementation of structural reform, during the second half of 2008, the Department assisted Local Government with the establishment of the three new Water and Sewerage Regional Corporations, Ben Lomond Water, Cradle Mountain Water and Southern Water. Since 1 July 2009, these corporations became responsible for the provision of water and sewerage services, and a fourth Corporation, Onstream, will support the Regional Corporations. In the period leading up to incorporation, the Department assisted Local Government to appoint the boards of the Regional Corporations, and facilitated the development and finalisation of constitutions for all four Corporations, including the requisite Parliamentary approval process. The second half of 2008 also saw the completion of a comprehensive due diligence assessment of the water and sewerage assets, rights, liabilities and employees of all Councils, bulk water authorities and State Government agencies. The outputs from the due diligence were used to assist the collaborative development of 74 Transfer Notices that transferred the majority of Council and Bulk Water Authority water and sewerage assets; rights and liabilities; and employees to the four corporations on 1 July 2009. The due diligence was also used to inform the development of an Interim Price Order for the water and sewerage sector, which determines the revenues required by the new corporations to move them towards full cost recovery, and in doing so allow them to commence the large capital investment task required in the sector. The Order was developed following advice from the Tasmanian Economic Regulator and a public consultation period. With respect to implementation of other aspects of the regulatory framework, a number of pieces of primary and subordinate legislation were developed during 2008–09. These Acts and Regulations specify general powers and obligations of the Regional Corporations. They also amend and repeal certain existing legislative arrangements that were inconsistent with, or no longer required, because of water and sewerage legislation developed in the previous year. Significant progress was made during 2008–09 in transitioning the water and sewerage sector to a sustainable footing. This would not have occurred without the positive and cooperative contributions from all parties involved, including Councils, the Local Government Association of Tasmania, the corporations, advisers to the Project Team, officers from other State Government agencies, including the Department of Health and Human Services, the Department of Primary Industries and Water, the then Department of Environment, Parks, Heritage and the Arts, and the Office of the Tasmanian Economic Regulator. What next? The Water and Sewerage Project Team’s major tasks for 2009–10 are:
Table 2.3: Performance information – Output Group 2
Notes to Table 2.3: 1. The satisfaction rating is obtained from the results of the Department’s Stakeholder Survey and relates to the quality and appropriateness of advice and accessibility and responsiveness of officers in the Economic and Financial Policy Division. 2. The accuracy of the Department’s taxation receipt forecasts can be determined by comparing the Budget estimate with the actual end-of-year outcome. 3. The accuracy of the Department’s Australian Government payments forecasts is determined by comparing the Budget estimate with the actual end-of-year outcome. 4. This measure provides an indication of the quality of taxation forecasts by comparing the accuracy of the Department’s estimates with the accuracy of estimates developed by other state and territory Treasuries. The target is for Tasmania to be ranked in the top half of all jurisdictions. 5. The quality of the economic forecasts can be determined by comparing the accuracy of the Department’s estimates with the accuracy of industry benchmark forecasts developed by independent economic forecasters near the same time. The target is for over half of the Department’s estimates to be more accurate than industry benchmark forecasts. |
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