Output group 2: Economic and fiscal policy advice
The Economic and Financial Policy Division is responsible for Agency Outcome 2 - that the Government receives sound and timely economic and fiscal policy advice.
The staff of the Economic and Financial Policy Division undertake research and provide policy advice on economic and financial issues; intergovernmental financial relations; State tax issues; superannuation for the public sector; and gaming and licensing policy. They also advise on energy market issues for Tasmania. The Division provides the resources that enable the Tasmanian Economic Regulator to carry out its statutory functions.
Budget Output 2.1:
Economic policy advice
During 2010-11, we continued to monitor and analyse the Tasmanian economy, with data releases providing up-to-date economic analysis of a broad range of economic indicators now available on Treasury’s website. We developed macroeconomic forecasts and projections for the State Budget.
We continued to play an important role in reviewing primary legislation under the Government’s Legislation Review Program and subordinate legislation under the Subordinate Legislation Act 1992. Over 60 Bills and 70 pieces of subordinate legislation were assessed during this period.
We developed the legislation that established the Expert Panel Review of the Tasmanian electricity supply industry. We also prepared regulations to extend retail competition from 1 July 2011 to business customers annually consuming between 50MWh and 150MWh of electricity.
We assisted the Treasurer to administer arrangements for the Interim Price Order to apply for 2011-12, for the water and sewerage industry. We prepared amendments to the Water and Sewerage Industry Act 2008, and developed, and publicly consulted on draft pricing regulations under the Act. We also managed and contributed to the Government’s submission to the House of Assembly Water and Sewerage Select Committee.
Budget Output 2.2:
Fiscal policy and regulatory advice
We contributed to the Heads of Treasuries review of National Agreements, National Partnerships and related Implementation Plans, known as the HoTs Review and continues to contribute to the implementation of the associated recommendations.
We worked with stakeholders during the negotiation phase of the new National Health Reform Agreement, and the development of the supporting financial arrangements.
We provided and continue to provide secretariat support to the State Tax Review Panel. The Panel is conducting a review of the State’s major taxes and is due to release a report in December 2011.
We developed the Taxation and Related Legislation (Miscellaneous Amendments) Bill 2011 and the Taxation Concessions and Exemptions Rebates Bill 2011. We also produced the Taxation Administration Regulations 2010, the Land Tax Regulations 2010 and the Duties Regulations 2011.
We facilitated the introduction of the Retirement Benefits Amendment Regulations 2011. We are currently developing new public sector legislation as part of the reform process of the Retirement Benefits Fund to become APRA regulated.
We considered the findings and recommendations of the Productivity Commission Report into Gambling and supported the Treasurer in participating in the COAG Select Council on Gambling Reform.
We also initiated the second social and economic impact study of gambling which will be completed in late 2011.
Output Group 2 performance report
|Performance measure |
|Stakeholder satisfaction rating of the quality of services1|
|Variance between Budget estimate and actual taxation receipts2 |
|Variance between Budget estimate and actual Australian Government payments3|
|Ranking of the accuracy of Tasmanian tax forecasts compared with other states and territories4|
Ranking (out of 8)
4th or better
|Number of annual budget economic forecasts more accurate than industry benchmark forecasts5|
Number more accurate
Notes to Table 2
1. The satisfaction rating is obtained from the results of the Department’s Stakeholder Survey which assess the effectiveness of the Department’s interactions with stakeholders and provides strategies for improvement in communication and liaison. The survey is undertaken every second year, with the next survey (for 2011-12) to be conducted in August 2012.
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. The higher than expected variance in 2009-10 for this measure is primarily due to a higher receipt of conveyance duty and payroll tax revenue than forecast. The actual 2010-11 result is not yet available.
3. The greater than target variance for 2009-10 is primarily due to higher than expected Goods and Services Tax receipts. The Department relies on Australian Government estimates of GST revenue. The actual 2010-11 result is not yet available.
4. This measure compares the accuracy of the Department’s Budget estimates to the actual end of year outcomes 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. The actual 2010-11 result is not yet available.
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 at a similar point in time. The target is for over half of the Department’s estimates to be more accurate than industry benchmark forecasts. In 2010-11, four of the Department’s economic forecasts were more accurate than the relevant industry benchmarks. Although the ABS population growth estimate is not released until December 2011, the Department’s estimate of population growth for 2010-11 is equal to the relevant industry benchmark.