3     Finance‑General

Agency Outline

The Finance‑General Division is administered by the Department of Treasury and Finance. Expenditure through Finance‑General generally reflects whole‑of‑government activities.

The major activities transacted through Finance‑General include the management of the Government's financial assets and liabilities, meeting the Government's pension and other superannuation commitments, administration of the Tasmanian Risk Management Fund, management of the Government's light vehicle fleet and property portfolio, and payments to government businesses.

Certain provisions have been made in the Special Deposits and Trust Fund to meet future liabilities of the Government, including a provision within the Tasmanian Risk Management Fund for workers' compensation and other insurable risks in respect of inner‑Budget agencies. Information on the Government's superannuation liabilities and administration of the Tasmanian Risk Management Fund is provided in chapter 7 of The Budget Budget Paper No 1.

Output Information

Outputs of Finance‑General are provided under the following Output Groups:

·       Output Group 1 ‑ Debt Servicing and Management;

·       Output Group 2 ‑ Employee Related Costs;

·       Output Group 3 ‑ Government Businesses; and

·       Output Group 4 ‑ Miscellaneous.

Table 3.1 provides an Output Group Expense Summary for Finance‑General.


 

Table 3.1:          Output Group Expense Summary

 

2014-15)

 

Budget)

2015-16)

 

Budget)

2016-17)

Forward)

Estimate)

2017-18)

Forward)

Estimate)

2018-19)

Forward)

Estimate)

 

$'000)

$'000)

$'000)

$'000)

$'000)

 

 

 

 

 

 

Treasurer

 

 

 

 

 

 

 

 

 

 

 

Output Group 1 - Debt Servicing and Management

 

 

 

 

 

1.1 Debt Servicing

 86)

 30)

 30)

 65)

 18)

1.2 Interest on Sundry Deposits

 2 421)

 1 695)

 2 779)

 4 021)

 2 707)

1.3 Debt Management

 8 710)

 8 390)

 8 062)

 7 727)

 7 384)

 

 11 217)

 10 115)

 10 871)

 11 813)

 10 109)

Output Group 2 - Employee Related Costs

 

 

 

 

 

2.1 Superannuation and Pensions

 394 677)

 390 046)

 392 095)

 392 824)

 392 958)

 

 394 677)

 390 046)

 392 095)

 392 824)

 392 958)

Output Group 3 - Government Businesses

 

 

 

 

 

3.1 Forestry Tasmania

 6 000)

 6 000)

 6 000)

 6 000)

 6 000)

3.2 State Fire Commission

 2 836)

 2 836)

 2 836)

 2 836)

 2 836)

3.4 Government Businesses

 1 583)

 1 824)

 1 814)

 1 504)

 1 493)

 

 10 419)

 10 660)

 10 650)

 10 340)

 10 329)

Output Group 4 - Miscellaneous

 

 

 

 

 

4.2 Treasurer's Reserve

 10 000)

 10 000)

 10 000)

 10 000)

 10 000)

4.3 Miscellaneous1

 7 413)

 23 272)

 7 427)

 17 427)

 17 427)

4.4 Payment to Australian Tax Office: GST Administration

 15 019)

 14 854)

 11 804)

 11 745)

 11 696)

4.5 Tasmanian Risk Management Fund

 61 389)

 60 141)

 59 066)

 61 632)

 64 354)

4.6 Fleet Management Services2

 17 086)

 14 972)

 15 107)

 15 313)

 15 520)

4.7 Property Management Services3

 33 462)

 22 308)

 26 297)

 28 184)

 28 466)

4.8 Infrastructure Investment Project Planning4

 3 308)

 2 000)

 2 000)

 2 000)

 2 000)

 

 147 677)

 147 547)

 131 701)

 146 301)

 149 463)

 

 

 

 

 

 

Grants and Subsidies

 480 377)

 488 671)

 463 962)

 225 300)

 278 865)

 

 

 

 

 

 

Special Capital Investment Funds5

 38 055)

 32 739)

 12 016)

 1 236)

 1 278)

 

 

 

 

 

 

TOTAL

1 082 422)

1 079 778)

1 021 295)

 787 814)

 843 002)

 

 

 

 

 

 

Notes:

1.   The increase in Miscellaneous in 2015‑16 reflects an increased provision for duties related ex gratia payments for corporate reconstructions. The increase from 2017‑18 reflects the revised cash flows for the Mobile Radio Network upgrade.

2.   The decrease in Fleet Management Services in 2015‑16 reflects revised depreciation rates and a reduction in the estimated size and value of the Government fleet.

3.   The estimated expenditure for Property Management Services has been reviewed having regard to actual experience in 2013-14 and 2014-15, and the estimated rental cashflows associated with the parliament square Project have been revised downwards for 2015‑16. In addition, following completion of the sale and transfer of the land in December 2014, estimated leasehold improvements for parliament square of $9.1 million will be capitalised in 2015‑16.

4.   The decrease in Infrastructure Investment Project Planning in 2015‑16 reflects the utilisation in 2014‑15 of funding carried forward under section 8A(2) of the Public Account Act 1986.

5.   The decrease in Special Capital Investment Funds (SCIF) reflects the winding down of these funds. Further details are provided in the SCIF section of this chapter.

 

Output Group 1:   Debt Servicing and Management

1.1 Debt Servicing

This Output provides for the interest cost on borrowings.

1.2 Interest on Sundry Deposits

This Output provides for the payment of interest on balances held in certain accounts in the Special Deposits and Trust Fund.

1.3 Debt Management

This Output reflects transactions associated with the repayment of Australian Government debt relating to housing activities.

The expense of $8.4 million in 2015‑16 ($8.7 million in 2014‑15) represents interest payments to the Australian Government on debt incurred under various Commonwealth‑State Housing Agreements.

Principal repayments by Housing Tasmania of $7.5 million in 2015‑16 ($7.3 million in 2014‑15) are capital transactions and are therefore not included in the expenses of Output 1.3, or in the expenses reported in the Statement of Comprehensive Income, but are reflected within Interest bearing liabilities in the Statement of Financial Position and included under Cash flows from investing activities in the Statement of Cash Flows.

Output Group 2:   Employee Related Costs

2.1 Superannuation and Pensions

This Output meets the Government's share of pension and superannuation costs.

In 2015‑16, superannuation and pension expenses are estimated to total $390 million, an anticipated decrease of $4.7 million in comparison with the budgeted cost in 2014‑15 of $394.7 million. The 2015‑16 estimate includes service costs of $104.4 million ($112.3 million in 2014‑15) and nominal interest of $285.6 million ($282.4 million in 2014‑15). The estimated value of the expense is based on the most recent actuarial assessment of the superannuation liability.

The estimated superannuation liability as at 30 June 2016 is $5 467.5 million (excluding the estimated Housing Tasmania pre‑July 1994 superannuation liability of $11.7 million as at 30 June 2016, the estimated Tasmanian Ambulance Services Superannuation Scheme liability of negative $4.8 million as at 30 June 2016 and the estimated State Fire Commission superannuation liability of negative $3.9 million as at 30 June 2016). This is an increase of $34.1 million from the 2014‑15 estimate of the liability as at 30 June 2015 of $5 433.4 million. The estimated value reflects the most recent actuarial assessment of the liability.

Further information in relation to the General Government superannuation liability can be found in chapter 7 of The Budget Budget Paper No 1.

Output Group 3:  Government Businesses

3.1 Forestry Tasmania

The 2015‑16 Budget includes funding of $4 million in 2015‑16 ($4 million in 2014‑15) and subsequent years for Forestry Tasmania to deliver non‑commercial activities as identified in its Ministerial Charter.

In addition, a Budget provision of $2 million has been made in 2015‑16 and subsequent years ($2 million in 2014‑15) for Forestry Tasmania to maintain its fire fighting capacity and assist with fighting wild fires.

3.2 State Fire Commission

A provision of $2.8 million has been made for the State Fire Commission in 2015‑16 and subsequent years ($2.8 million in 2014‑15). Of this amount, a provision of $790 000 has been made for the Bushfire Mitigation Program and $240 000 has been appropriated as a contingent provision for funding excess fire fighting costs. The remaining $1.8 million represents the State Government's annual funding contribution to the Commission in accordance with section 101 of the Fire Service Act 1979.

3.4 Government Businesses

This Output provides for expenses arising from the Government's ownership interests in Government businesses.

Tasracing Pty Ltd

An amount of $1.5 million has been provided in 2015‑16 ($1.3 million in 2014‑15) in accordance with the Government's agreement to reimburse Tasracing Pty Ltd for the costs (including principal where necessary) associated with Tasracing's borrowings with Tascorp, where Tasracing cannot meet those costs.

Tasmanian Irrigation Pty Ltd - Transition Readiness

A key role for Tasmanian Irrigation Pty Ltd going forward involves maximising the extra value that the irrigation schemes are capable of delivering and transitioning to a sustainable business model that provides an effective service to its customers and community stakeholders. To assist Tasmanian Irrigation transition into a value‑adding and sustainable business, the Government is providing $300 000 in 2015‑16 and 2016‑17.

Output Group 4:  Miscellaneous

4.2 Treasurer's Reserve

An amount of $10 million has been provided in the Treasurer's Reserve in 2015‑16 ($10 million in 2014‑15) to meet expenditure that could not reasonably be foreseen at the time of developing the 2015‑16 Budget and which is essential for efficient financial management.


 

4.3 Miscellaneous

Items of expenditure under this Output relate to various miscellaneous payments, including the Mobile Radio Network, assistance for voluntary local government amalgamations, support for nationally driven reforms and a provision for duty related ex gratia payments where there are corporate reconstruction transactions that do not result in a change of ownership.

Mobile Radio Network

An amount of $2 million is provided in 2015‑16 for the funding of the whole‑of‑government Mobile Radio Network upgrade administered by the Department of Police and Emergency Management. As a consequence of delays in the implementation of this Project, estimated expenditure will decrease by $18 million in 2015‑16 and $10 million in 2016‑17.

Voluntary Local Government Amalgamations

An amount of $400 000 is provided in 2015‑16 to assist local councils with investigations into voluntary amalgamations.

Support for Nationally Driven Reforms

Funding of $250 000 has been provided in 2015‑16 ($250 000 in 2014‑15) to support Tasmania's participation in nationally driven reforms, primarily the two Australian Government White Paper processes (Reform of the Federation and Reform of Australia's Taxation System) and will provide the flexibility to resource reform projects as necessary. The Departments of Treasury and Finance and Premier and Cabinet will be extensively involved in preparing and managing the Tasmanian Government's responses.

4.4 Payment to Australian Taxation Office: GST Administration

Under the Intergovernmental Agreement (IGA), the states and territories meet the costs of the Australian Taxation Office in administering the goods and services tax. The states and territories share the GST administration costs on a per capita basis. Tasmania's contribution to collection and compliance costs for 2015‑16 is estimated at $14.9 million ($15 million in 2014‑15).

4.5 Tasmanian Risk Management Fund

The estimated expenses of $60.1 million in 2015‑16 ($61.4 million in 2014‑15) represent anticipated administration and claims costs. Expenditure estimates for the Fund reflect the most recent actuarial advice.

4.6 Fleet Management Services

All direct transactions associated with whole‑of‑government light vehicle fleet management activities are recorded in the Government Car Fleet Account within the Special Deposits and Trust Fund. Revenue in the Government Car Fleet Account is derived from the sale of vehicles and receipts from the Government's Fleet Manager of lease, registration and insurance payments by agencies, net of the fleet management fee.

Estimated expenses for this Output in 2015‑16 of $15 million ($17.1 million in 2014‑15) include motor vehicle registration expenses of $1.1 million ($1.2 million in 2014‑15) and estimated depreciation on motor vehicles of $13.9 million ($15.8 million in 2014‑15).

The Government is committed to reducing the cost of running its passenger and light commercial motor vehicle fleet. Over the Budget and Forward Estimates period, the Government is aiming to reduce vehicle operating costs by $1.5 million per annum. Fleet cost savings continue to be achieved through the implementation and monitoring of the following strategies:

·       reducing individual agency fleets through identification of underutilised and/or surplus vehicles;

·       applying a greater focus on whole‑of‑life costs; and

·       improving utilisation of vehicles through the introduction of fleet booking/pooling systems and GPS tracking units.

In line with the Government's commitment to reducing costs, fleet numbers have continued to decline. Government fleet cost saving strategies being implemented by agencies include a further reduction in the size of the government fleet to 2 389 vehicles as at 31 March 2015, compared to 2 501 vehicles as at 31 March 2014 and a continuation of the downward trend in total monthly operating costs of the fleet.

4.7 Property Management Services

It is estimated that expenditure for Property Management Services will amount to $22.3 million in 2015‑16 ($33.5 million in 2014‑15). The estimated expenditure for Property Management Services has been reviewed having regard to actual experience in 2013-14 and 2014-15, and the estimated rental cashflows associated with the parliament square Project have been revised downwards for 2015‑16. In addition, following completion of the sale and transfer of the land in December 2014, estimated leasehold improvements for parliament square of $9.1 million ($3 million in 2014-15) will be capitalised in 2015‑16.

The Department of Treasury and Finance has commenced the implementation of centralised management and coordination of major office accommodation leases for Government within the Hobart CBD. This strategic approach to major leases will lead to more efficient and effective management of the Government's leased office accommodation. Treasury has commenced a review of major Hobart CBD office leases that are subject to renewal in the remainder of 2015 and is working with agencies to ensure lease negotiations optimise whole-of-government outcomes.

4.8 Infrastructure Investment Project Planning

The Infrastructure Investment Project Planning Output provides funding of $2 million in 2015‑16 and subsequent years for the early planning stages of major infrastructure projects.


 

Special Capital Investment Funds

Within Finance‑General, funds are held for investment in economic and social infrastructure. This section provides a description of the Funds, the balance of each Fund and the projects to be funded in 2015‑16 and over the Forward Estimates period. Further detail on capital expenditure from the Special Capital Investment Funds is provided in chapter 6 of The Budget Budget Paper No 1.

Hospitals Capital Fund

The Hospitals Capital Fund was established in 2007‑08 to provide capital funding for hospitals across the State. In 2015‑16, a total amount of $17.6 million has been allocated from the HCF for Mersey Hospital Upgrades ($1.4 million) and the redevelopment of the Royal Hobart Hospital ($16.2 million).

In total, the HCF will have provided $100 million to address the Royal Hobart Hospital's ageing buildings and infrastructure, and to improve and expand key services such as intensive care. It is expected that the Fund will be fully expended in 2015‑16.

A summary of the projects to be funded from the Hospitals Capital Fund is provided in Table 3.2.

Table 3.2:          Hospitals Capital Fund

 

Estimated)

Total)

Cost)

2015‑16)

 

Budget)

2016‑17

Forward

Estimate

2017‑18

Forward

Estimate

2018‑19

Forward

Estimate

 

$'000)

$'000)

$'000

$'000

$'000

 

 

 

 

 

 

Balance Brought Forward

 

17 597)

....

....

....

 

 

 

 

 

 

TOTAL SOURCE OF FUNDS

 

17 597)

....

....

....

 

 

 

 

 

 

OUTFLOWS

 

 

 

 

 

Department of Health and Human Services

 

 

 

 

 

Minister for Health

 

 

 

 

 

Mersey Hospital Upgrades

1 900)

1 400)

....

....

....

Royal Hobart Hospital

100 000)

16 197)

....

....

....

TOTAL OUTFLOWS

)

17 597)

....

....

....

 

 

 

 

 

 

Closing Balance

)

....)

....

....

....

 

 

 

 

 

 


 

Housing Fund

The Housing Fund was established in 2007‑08, with an allocation of $60 million for the purpose of increasing the supply of public housing. In 2015‑16, it is anticipated that $1.6 million will be expended from the Housing Fund on public housing projects.

Details of projects to be funded from the Housing Fund in 2015‑16 are provided in chapter 4 of this Budget Paper. It is expected that the Fund will be fully expended in 2018‑19.

Table 3.3:          Housing Fund

 

Estimated)

Total)

Cost)

2015‑16)

 

Budget)

2016‑17

Forward

Estimate

2017‑18

Forward

Estimate

2018‑19

Forward

Estimate

 

$'000)

$'000)

$'000)

$'000

$'000

 

 

 

 

 

 

Balance Brought Forward

 

5 225)

3 671)

2 514

1 278

 

 

 

 

 

 

TOTAL SOURCE OF FUNDS

 

5 225)

3 671)

2 514

1 278

 

 

 

 

 

 

OUTFLOWS

 

 

 

 

 

Department of Health and Human Services

 

 

 

 

 

Minister for Human Services

 

 

 

 

 

Housing Fund

60 000)

1 554)

1 157)

1 236

 1 278

TOTAL OUTFLOWS

)

1 554)

1 157)

1 236

1 278

 

 

 

 

 

 

Closing Balance

)

3 671)

2 514)

1 278

....

 

 

 

 

 

 

Infrastructure Tasmania Fund

The Infrastructure Tasmania Fund (ITF) was established in 2007‑08, with proceeds of $312.9 million from the divestment of government businesses, to fund major capital projects. During 2007‑08, $80 million was transferred from the ITF to the Water Infrastructure Fund administered by the Department of Primary Industries, Parks, Water and Environment and $25 million was transferred to the former Urban Renewal and Heritage Fund.

A summary of the projects to be funded from the ITF is provided in Table 3.4. It is expected that the Fund will be fully expended in 2016‑17.


 

Table 3.4:          Infrastructure Tasmania Fund

 

Estimated)

Total)

Cost)

2015‑16)

 

Budget)

2016‑17

Forward

Estimate

2017‑18

Forward

Estimate

2018‑19

Forward

Estimate

 

$'000)

$'000)

$'000

$'000

$'000

 

 

 

 

 

 

Balance Brought Forward

 

23 802)

10 859

....

....

 

 

 

 

 

 

TOTAL SOURCE OF FUNDS

 

23 802)

10 859

....

....

 

 

 

 

 

 

OUTFLOWS

 

 

 

 

 

Department of Health and Human Services

 

 

 

 

 

Minister for Health

 

 

 

 

 

Health Infrastructure

67 410)

12 943)

10 859

....

....

TOTAL OUTFLOWS

)

12 943)

10 859

....

....

 

 

 

 

 

 

Closing Balance

)

10 859)

....

....

....

 

 

 

 

 

 

Infrastructure Tasmania Fund Projects

In 2015‑16, Health Infrastructure expenditure of $12.9 million for infrastructure upgrades will include:

·       Flinders Island Multi Purpose Centre Upgrade ($138 000);

·       Glenorchy - Tier Three Community Health Services Facility ($10.7 million);

·       Kingston - Tier Three Community Health Services Facility ($2 million); and

·       King Island Hospital and Health Centre Upgrade ($112 000).


 

Royal Hobart Hospital Redevelopment Fund

A Royal Hobart Hospital Redevelopment Fund was established in 2004‑05 with a $35 million allocation provided for the purposes of developing and enhancing the facilities at the Royal Hobart Hospital. Funding of $645 000 has been allocated from this Fund in 2015‑16. It is anticipated the Royal Hobart Hospital Redevelopment Fund will be fully expended in 2015‑16. Further information about the sources of funding for the Royal Hobart Hospital Redevelopment project is provided in chapter 4 of this Budget Paper.

Table 3.5:          Royal Hobart Hospital Redevelopment Fund

 

Estimated)

Total)

Cost)

2015‑16)

 

Budget)

2016‑17

Forward

Estimate

2017‑18

Forward

Estimate

2018‑19

Forward

Estimate

 

$'000)

$'000)

$'000)

$'000)

$'000

 

 

 

 

 

 

Balance Brought Forward

 

645)

....)

....)

....

 

 

 

 

 

 

TOTAL SOURCE OF FUNDS

 

645)

....)

....)

....

 

 

 

 

 

 

OUTFLOWS

 

 

 

 

 

Department of Health and Human Services

 

 

 

 

 

Minister for Health

 

 

 

 

 

RHH Redevelopment Fund

35 000)

645)

....)

....)

....

TOTAL OUTFLOWS

)

645)

....)

....)

....

 

 

 

 

 

 

Closing Balance

)

....)

....)

....)

....

 

 

 

 

 

 


Detailed Budget Statements

Table 3.6:          Statement of Comprehensive Income - Administered

 

2014-15)

 

Budget)

2015-16)

 

Budget)

2016-17)

Forward)

Estimate)

2017-18)

Forward)

Estimate)

2018-19)

Forward)

Estimate)

 

$'000)

$'000)

$'000)

$'000)

$'000)

 

 

 

 

 

 

Revenue and other income from transactions

 

 

 

 

 

Appropriation revenue - recurrent1

 494 470)

 527 016)

 525 354)

 519 666)

 536 296)

Other revenue from government1

 2 808)

....)

....)

....)

....)

Grants2

2 588 102)

3 017 224)

3 083 093)

3 100 128)

3 268 136)

Taxation3

 887 341)

 927 172)

 938 875)

 952 799)

 970 638)

Sales of goods and services4

 97 162)

 89 993)

 89 921)

 92 472)

 95 268)

Interest

 18 631)

 17 934)

 18 545)

 22 294)

 21 739)

Dividend, tax and rate equivalent income5

 342 939)

 213 402)

 218 703)

 255 385)

 241 814)

Other revenue

 105 378)

 107 583)

 107 226)

 106 833)

 106 430)

Total revenue and other income from transactions

4 536 831)

4 900 324)

4 981 717)

5 049 577)

5 240 321)

 

 

 

 

 

 

Expenses from transactions

 

 

 

 

 

Employee benefits

 394 677)

 390 046)

 392 095)

 392 824)

 392 958)

Depreciation and amortisation

 16 385)

 14 343)

 16 271)

 17 758)

 17 970)

Supplies and consumables6

 125 702)

 110 864)

 108 940)

 112 057)

 115 011)

Grants and subsidies

 534 203)

 554 215)

 492 918)

 253 162)

 306 754)

Borrowing costs

 11 455)

 10 310)

 11 071)

 12 013)

 10 309)

Transfers to the Consolidated Fund

3 737 418)

3 969 497)

4 055 184)

4 283 507)

4 246 730)

Total expenses from transactions

4 819 840)

5 049 275)

5 076 479)

5 071 321)

5 089 732)

 

 

 

 

 

 

Net result from transactions (net operating balance)

(283 009)

(148 951)

(94 762)

(21 744)

 150 589)

 

 

 

 

 

 

Other economic flows included in net result

 

 

 

 

 

Net gain/(loss) on non-financial assets

(51)

....)

....)

(1)

....)

Movement in investments in GBEs and SOCs7

(347 765)

 58 945)

 25 768)

 33 344)

 73 316)

Other gains/(losses) from other economic flows8

(41 323)

(29 282)

(1 884)

 6 443)

(467)

Total other economic flows included in net result

(389 139)

 29 663)

 23 884)

 39 786)

 72 849)

 

 

 

 

 

 

Net result

(672 148)

(119 288)

(70 878)

 18 042)

 223 438)


 

Table 3.6:            Statement of Comprehensive Income - Administered (continued)

 

2014-15)

 

Budget)

2015-16)

 

Budget)

2016-17)

Forward)

Estimate)

2017-18)

Forward)

Estimate)

2018-19)

Forward)

Estimate)

 

 

$'000)

$'000)

$'000)

$'000)

$'000)

 

 

 

 

 

 

 

Other economic flows - other non-owner changes in equity

 

 

 

 

 

Other movements taken directly to equity

(2)

(2)

(2)

(2)

(2)

Total other economic flows - other non-owner changes in equity

(2)

(2)

(2)

(2)

(2)

 

 

 

 

 

 

Comprehensive result

(672 150)

(119 290)

(70 880)

 18 040)

 223 436)

 

 

 

 

 

 

Notes:

1.   Explanations for significant variances can be found in Table 3.7 Revenue from Appropriation by Output.

2.   Grants represents funding from the Australian Government in the form of GST receipts, National Partnership Payments and Specific Purpose Payments. Further information on Australian Government Funding can be found in chapter 5 of The Budget Budget Paper No 1.

3.   Further information regarding Taxation Revenue can be found in chapter 5 of The Budget Budget Paper No 1.

4.   The decrease in Sales of goods and services primarily reflects revised rental cash flows for government buildings based on actual experience for 2013‑14 and 2014‑15.

5.   The decrease in Dividend, tax and rate equivalent income in 2015‑16 is primarily due to a decrease in dividends and income tax equivalents from Hydro Tasmania, Motor Accidents Insurance Board and Tasmanian Networks Pty Ltd, partially offset by an increase in dividends and income tax equivalents from Aurora Energy Pty Ltd. The movements reflect the outcomes of the capital structure review of the State‑owned electricity businesses and the lower wholesale electricity prices reflecting the removal of carbon pricing and softening of demand in the National Electricity Market. The decrease for the Motor Accidents Insurance Board reflects the Board’s decision to remit a special dividend in 2014‑15.

6.   The decrease in Supplies and consumables primarily reflects the revised rental cashflows for the parliament square Project based on actual experience for 2013‑14 and 2014‑15. In addition, following completion of the sale and transfer of the land in December 2014, estimated leasehold improvements will be capitalised in 2015‑16.

7.   Movement in investment in GBEs and SOCs represents the estimated movement in the value of net assets of government businesses, excluding any equity contributions, between 1 July and 30 June each year.

8.   Other gains/(losses) from other economic flows represents the estimated movement of deferred tax assets and liabilities held by government businesses.


 

Table 3.7:          Revenue from Appropriation by Output

 

2014-15)

 

Budget)

2015-16)

 

Budget)

2016-17)

Forward)

Estimate)

2017-18)

Forward)

Estimate)

2018-19)

Forward)

Estimate)

 

$'000)

$'000)

$'000)

$'000)

$'000)

 

 

 

 

 

 

Treasurer

 

 

 

 

 

 

 

 

 

 

 

Output Group 1 - Debt Servicing and Management

 

 

 

 

 

1.1 Debt Servicing

 64)

 34)

 30)

 30)

 66)

1.2 Interest on Sundry Deposits

 7 166)

 6 361)

 9 009)

 12 376)

 9 351)

 

 7 230)

 6 395)

 9 039)

 12 406)

 9 417)

Output Group 2 - Employee Related Costs

 

 

 

 

 

2.1 Superannuation and Pensions

 242)

 241)

 241)

 241)

 241)

2.3 Provision for 27th Pay

 6 500)

 6 707)

 6 707)

 6 707)

 6 707)

 

 6 742)

 6 948)

 6 948)

 6 948)

 6 948)

Output Group 3 - Government Businesses

 

 

 

 

 

3.1 Forestry Tasmania

 6 000)

 6 000)

 6 000)

 6 000)

 6 000)

3.2 State Fire Commission

 2 836)

 2 836)

 2 836)

 2 836)

 2 836)

3.4 Government Businesses1

 8 583)

 17 824)

 16 814)

 9 004)

 8 993)

 

 17 419)

 26 660)

 25 650)

 17 840)

 17 829)

Output Group 4 - Miscellaneous

 

 

 

 

 

4.3 Miscellaneous

 7 413)

 23 272)

 7 427)

 17 427)

 17 427)

4.4 Payment to Australian Tax Office: GST Administration

 15 019)

 14 854)

 11 804)

 11 745)

 11 696)

4.7 Property Management Services2

 12 398)

 16 164)

 35 565)

 9 875)

 10 157)

4.8 Infrastructure Investment Project Planning

 2 000)

 2 000)

 2 000)

 2 000)

 2 000)

 

 36 830)

 56 290)

 56 796)

 41 047)

 41 280)

 

 

 

 

 

 

Grants and Subsidies3

 158 862)

 147 003)

 129 999)

 130 925)

 133 935)

 

 

 

 

 

 

Finance-General

 

 

 

 

 

Recurrent Services

 227 083)

 243 296)

 228 432)

 209 166)

 209 409)

 

 227 083)

 243 296)

 228 432)

 209 166)

 209 409)


 

Table 3.7:          Revenue from Appropriation by Output (continued)

 

2014-15)

 

Budget)

2015-16)

 

Budget)

2016-17)

Forward)

Estimate)

2017-18)

Forward)

Estimate)

2018-19)

Forward)

Estimate)

 

$'000)

$'000)

$'000)

$'000)

$'000)

 

 

 

 

 

 

Reserved by Law

 

 

 

 

 

Appropriation to the Treasurer's Reserve (Public Account Act 1986)

 10 000)

 10 000)

 10 000)

 10 000)

 10 000)

Payments to Municipalities under the Local Government (Rates and Charges Remissions) Act 1991

 16 101)

 16 488)

 17 120)

 17 776)

 18 453)

Payments under the Retirement Benefits (Parliamentary Superannuation) Regulations 2012

 1 423)

 1 276)

 1 194)

 1 433)

 1 433)

Superannuation Benefits Payable under the Governor of Tasmania Act 1982

 138)

 126)

 129)

 131)

 134)

Superannuation Benefits Payable under the Judges' Contributory Pensions Act 1968

 2 345)

 2 136)

 2 187)

 2 233)

 2 275)

Superannuation Benefits Payable under the Retirements Benefits Act 1993

 237 104)

 253 443)

 266 035)

 278 664)

 294 324)

Superannuation Benefits Payable under the Solicitor‑General Act 1983

 276)

 251)

 257)

 263)

 268)

 

 267 387)

 283 720)

 296 922)

 310 500)

 326 887)

 

 

 

 

 

 

Appropriation Carried Forward

 2 808)

....)

....)

....)

....)

 

 

 

 

 

 

Total Revenue from Appropriation

 497 278)

 527 016)

 525 354)

 519 666)

 536 296)

 

 

 

 

 

 

Administered Revenue from Appropriation

 497 278)

 527 016)

 525 354)

 519 666)

 536 296)

 

 497 278)

 527 016)

 525 354)

 519 666)

 536 296)

 

 

 

 

 

 

Notes:

1.   The increase in the Government Businesses Output primarily reflects the Government's commitment to provide $30 million of equity injections to Tasmanian Irrigation Pty Ltd over four years to 2018‑19 to expand Tasmania's irrigation infrastructure network. In addition, the Government will continue with the planned provision of $17 million of equity injections to the Tasmanian Ports Corporation Pty Ltd over the three years to 2016‑17 for essential remedial works on port infrastructure.

2.   The changes in the Property Management Services Output reflect revised rental cash flows based on actual experience for 2013‑14 and 2014‑15, together with the funding of leasehold improvements which are being capitalised from 2015‑16, following the completion of the sale and transfer of the parliament square land in December 2014.

3.   Explanations for significant variances can be found in Table 3.8 Administered Expenses.

 


 

Table 3.8:          Administered Expenses

 

2014-15]

)

Budget)

2015-16]

)

Budget)

2016-17]

Forward)

Estimate)

2017-18]

Forward)

Estimate)

2018-19]

Forward)

Estimate)

 

$'000)

$'000)

$'000)

$'000)

$'000)

 

 

 

 

 

 

Grants and Subsidies

 

 

 

 

 

Australian Government Contribution for Extension of Pensioner Concessions

 475)

 475)

 475)

 475)

 475)

Energy Retailer Concession1

 42 101)

 37 196)

 37 471)

 37 748)

 38 028)

First Home Builder Boost2

 17 900)

 11 300)

 3 230)

 3 120)

 3 000)

Local Government Grants

 72 125)

 71 666)

 71 135)

 73 660)

 76 270)

Management of Australian Government Funding3

 283 241)

 313 582)

 316 843)

 76 599)

 131 277)

Natural Disaster Relief Scheme4

 2 638)

 1 138)

 532)

 532)

 532)

Other Grants and Subsidies

 50)

....)

....)

....)

....)

Payments under Local Government (Rates and Charges Remissions) Act 1991

 16 101)

 16 488)

 17 120)

 17 776)

 18 453)

Payroll Tax Assistance

 4 083)

 4 300)

 1 000)

 1 000)

 1 000)

Tasmanian Forestry Agreement5

 27 723)

 18 398)

 6 800)

 4 800)

....)

Water and Sewerage Concessions and Subsidies

 13 940)

 14 128)

 9 356)

 9 590)

 9 830)

 

 480 377)

 488 671)

 463 962)

 225 300)

 278 865)

 

 

 

 

 

 

Transfer to the Consolidated Fund

3 737 418)

3 969 497)

4 055 184)

4 283 507)

4 246 730)

 

 

 

 

 

 

Other Administered Expenses

 602 045)

 591 107)

 557 333)

 562 514)

 564 137)

 

 

 

 

 

 

Total Administered Expenses

4 819 840)

5 049 275)

5 076 479)

5 071 321)

5 089 732)

 

 

 

 

 

 

Notes:

1.   The decrease in the Energy Retailer Concession reflects the removal of a provision made in 2014‑15 which was unutilised and is no longer required, together with the revision of projected expenditure across the Budget and Forward Estimates period.

2.   The First Home Builder Boost in 2015‑16 and across the Forward Estimates reflects the Government's decision to continue the Scheme to 31 December 2015 at a level of $20 000 and then at $10 000 from 1 January 2016 on an ongoing basis.

3.   The increase in the Management of Australian Government Funding in 2015‑16 and 2016‑17 primarily relates to the redevelopment of the Royal Hobart Hospital and funding for roads infrastructure.

4.   The decrease in the Natural Disaster Relief Scheme primarily reflects the finalisation of most of the 2013 Tasmanian Bushfire Recovery costs.

5.   The decrease in Tasmanian Forestry Agreement in 2015‑16 reflects the delivery of programs under the National Partnership Agreement on the Implementation of the Tasmanian Forests Intergovernmental Agreement 2013 which will conclude in 2017‑18.

 

Australian Government Contribution for Extension of Pensioner Concessions

The purpose of this item is to provide non‑Budget sector agencies with funds to cover the additional cost of maintaining existing concession arrangements following an extension by the Australian Government, from 1 April 1993, of eligibility for the Pensioner Concession Card.


 

Energy Retailer Concession

In accordance with the Electricity Supply Industry Act 1995, the Government has entered into a Community Service Obligation agreement with Aurora Energy Pty Ltd to provide concessions to eligible low income earners and pensioners to assist them in meeting the cost of services provided by Aurora Energy. Payments are made to Aurora Energy, which passes the benefit on to eligible customers as lower service charges.

First Home Builder Boost

The Government has agreed to extend the $20 000 grant to 31 December 2015 which is expected to support ongoing demand for new homes by first home buyers and allow a slower taper of grant assistance. The tapering of grant assistance for first home buyers of newly constructed homes from $30 000 to $20 000 and then to $10 000 was originally designed to minimise the impact on the building industry from a more sudden reduction. However, uptake of the $30 000 grant has far exceeded expectations and this has impacted the transition to a reduced amount. Extending the grant at the level of $20 000 will allow a slower taper of the current surge in residential building activity.

Local Government Grants

Local Government Grants are comprised of two components: general purpose funding and identified local road funds. Under the Australian Local Government (Financial Assistance) Act 1995, the Australian Government each year provides funds to the states for on‑passing as general purpose grants to local government.

Natural Disaster Relief Scheme

A limited Tasmanian Natural Disaster Relief Scheme, administered by the Department of Premier and Cabinet, is funded from within Finance‑General. This Scheme provides for payments to local government authorities that face the eligible costs of restoring or replacing essential public assets, which have been damaged as a direct result of a disaster, to a pre‑disaster standard. Disasters for which relief is available are determined at the national level and include any one of, or a combination of, the following natural hazards: bushfire; earthquake; flood; storm; cyclone; storm surge; landslide; tsunami; meteorite strike or tornado.

A provision of $532 000 has been included in the 2015‑16 Budget allocation and forward estimates for Finance‑General for payments that may be made under the Natural Disaster Relief Scheme.

Tasmanian Bushfire Recovery

The Government will provide $606 000 in 2015‑16 to fund private property fuel reduction and Fire Management Committee initiatives following the 2013 Tasmanian bushfires. This is in addition to the continued implementation of the Government's commitment to funding general fuel reduction burns (see chapter 9 of this Budget Paper).


 

Payments under the Local Government (Rates and Charges Remissions) Act 1991

In accordance with the provisions of the Local Government (Rates and Charges Remissions) Act 1991, the pensioner rates remission scheme provides a remission of 30 per cent off council rates and charges, up to a defined maximum annual amount for eligible pensioners. The maximum remission is indexed annually to ensure that rate relief increases in line with inflation.

Prior to 1 July 2009, as councils rates and charges included water and sewerage charges in addition to the general rates, the rates remission calculation included remissions on both general rates and water and sewerage charges components.

With the introduction of the water and sewerage reforms, from 1 July 2009, water and sewerage services and charges became the responsibility of the water and sewerage corporation. A separate concession on water and sewerages charges is offered by the Government through TasWater Pty Ltd to eligible card holders. This concession effectively replaces the previous water and sewerage charges remission component under the pensioner rates remission scheme.

For 2015‑16, the maximum pensioner rate remission concession will be capped at $288 for those pensioners who are customers of TasWater and will be $425 for those pensioners who are not customers.

Payroll Tax Assistance

The purpose of this grant is to provide financial assistance to organisations, subject to various eligibility criteria being met. Some organisations receive assistance by way of grants equivalent to their payroll tax liability and are entitled to assistance when their payroll expenditure exceeds the threshold limit, currently $1.25 million per annum.

Jobs Package Payroll Tax Rebate

The fourth Employee Incentive Scheme Payroll Tax Rebate (EISPR4) was introduced as part of the Government's Job Creation Package and operates in conjunction with EISPR3 (EISPR3 concludes on 31 December 2015). EISPR4 provides a payroll tax rebate of up to two years for private sector employers who create additional eligible positions in Tasmania from 30 June 2014 to 30 June 2015. The additional positions must be maintained until at least 30 June 2016. The Government estimates that the cost of EISPR3 and EISPR4 during 2015‑16 will be $3.3 million.

Qantas Airways Limited

The Government is continuing its financial assistance package to Qantas, including payroll tax relief of $1 million per annum for nine years from 2015‑16, ending with a final reimbursement of $250 000 in 2024‑25. This payroll tax relief is part of a broader agreement with Qantas to secure existing Qantas Contact Centre positions and through the consolidation of Australia‑wide operations, provides for increased employment at the Hobart Contact Centre.

Tasmanian Forests Agreement

Funding committed to the Tasmanian Forests Agreement by the State and Australian Government is set out in the National Partnership Agreement on the Implementation of the Tasmania Forests Intergovernmental Agreement 2013.

The 2015‑16 Budget does not include any receipts of future funding from the Australian Government or expenditure of these funds under the NPA.

The funding in the Budget and Forward Estimates includes expenditure to complete delivery of the Tasmanian administered programs, including the Ministerial Advisory Council, residues and special species studies and support for affected workers. It also includes funds committed to support rescheduled harvesting and plantation management.

Water and Sewerage Concessions

Under the Water and Sewerage Industry (Community Service Obligation) Act 2009 concessions are made available to eligible low income earners and pensioners to assist them in meeting the cost of services provided by TasWater Pty Ltd. Payments are made to TasWater which pass the benefit on to concession card holders as lower service charges. Persons eligible for the concession are current holders of a Health Care Card, Pensioner Concession Card, or Department of Veterans' Affairs Repatriation Health Gold Card.

Water and Sewerage Headworks Holiday

The Government has committed to provide a two-year waiver of water and sewerage headworks charges for all developments by way of a Water and Sewerage Headworks Holiday. A $5 million grant has been provided in 2015‑16 to support TasWater's waiver of headworks charges to March 2016.


 

Table 3.9:          Statement of Financial Position as at 30 June - Administered

 

2015)

 

Budget)

2016)

 

Budget)

2017)

Forward)

Estimate)

2018)

Forward)

Estimate)

2019)

Forward)

Estimate)

 

$'000)

$'000)

$'000)

$'000)

$'000)

 

 

 

 

 

 

Assets

 

 

 

 

 

Financial assets

 

 

 

 

 

Cash and deposits

 905 785)

 877 491)

 684 882)

 691 480)

 697 049)

Investments

 204 747)

 190 016)

 180 238)

 170 300)

 161 891)

Receivables

 68 518)

 77 463)

 77 463)

 77 463)

 77 463)

Equity investments1

4 331 709)

4 515 047)

4 570 765)

4 626 559)

4 722 325)

Other financial assets2

 731 736)

 639 178)

 659 225)

 662 928)

 680 503)

 

6 242 495)

6 299 195)

6 172 573)

6 228 730)

6 339 231)

Non-Financial Assets

 

 

 

 

 

Assets held for sale

 1 284)

 820)

 820)

 820)

 820)

Property, plant and equipment3

 91 768)

 94 346)

 117 696)

 113 803)

 109 286)

Other assets

 831)

 811)

 811)

 811)

 811)

 

 93 883)

 95 977)

 119 327)

 115 434)

 110 917)

 

 

 

 

 

 

Total Assets

6 336 378)

6 395 172)

6 291 900)

6 344 164)

6 450 148)

 

 

 

 

 

 

Liabilities

 

 

 

 

 

Payables

 9 130)

 10 924)

 10 748)

 10 664)

 10 282)

Interest bearing liabilities4

1 183 517)

 978 263)

 816 155)

 733 327)

 513 655)

Superannuation5

5 433 361)

5 467 462)

5 589 514)

5 699 373)

5 793 656)

Other liabilities6

 210 665)

 213 042)

 220 882)

 228 159)

 236 478)

Total Liabilities

6 836 673)

6 669 691)

6 637 299)

6 671 523)

6 554 071)

 

 

 

 

 

 

Net Assets (liabilities)

(500 295)

(274 519)

(345 399)

(327 359)

(103 923)

 

 

 

 

 

 

Equity

 

 

 

 

 

Reserves

 11 901)

 11 901)

 11 901)

 11 901)

 11 901)

Accumulated funds

(512 196)

(286 420)

(357 300)

(339 260)

(115 824)

Total Equity

(500 295)

(274 519)

(345 399)

(327 359)

(103 923)

 

 

 

 

 

 

Notes:

1.   Equity investments represents the Government's equity interest in government businesses measured as the consolidated value of their net assets.

2.   The decrease in Other financial assets represents the estimated movement of deferred tax assets and liabilities held by government businesses.

3.   The increase in Property, plant and equipment primarily reflects the capitalisation of leasehold improvements following completion of the sale and transfer of the parliament square land in December 2014.

4.   Interest bearing liabilities consists of Australian Government borrowings of $180.9 million incurred under various Commonwealth‑State Housing Agreements, estimated borrowings of $477.8 million through Tascorp and deposits of $319.6 million held on behalf of agencies in the Special Deposits and Trust Fund.

5.   The movement in the Superannuation liability reflects the most recent actuarial estimates of the liability. Further information on Superannuation is included in chapter 7 of The Budget Budget Paper No 1.

6.   Other liabilities is principally comprised of the Tasmanian Risk Management Fund's (TRMF) liabilities. Further information on the TRMF is included in chapter 7 of The Budget Budget Paper No 1.

Table 3.10:        Statement of Cash Flows - Administered

 

2014-15)

 

Budget)

2015-16)

 

Budget)

2016-17)

Forward)

Estimate)

2017-18)

Forward)

Estimate)

2018-19)

Forward)

Estimate)

 

$'000)

$'000)

$'000)

$'000)

$'000)

 

 

 

 

 

 

Cash flows from operating activities

 

 

 

 

 

Cash inflows

 

 

 

 

 

Appropriation receipts - recurrent

 494 470)

 527 016)

 525 354)

 519 666)

 536 296)

Grants

2 588 102)

3 017 224)

3 083 093)

3 100 128)

3 268 136)

Taxation

 887 498)

 927 185)

 939 190)

 953 153)

 970 663)

Sales of goods and services

 97 162)

 89 993)

 89 921)

 92 472)

 95 268)

GST receipts

 13 500)

 13 500)

 13 500)

 13 500)

 13 500)

Interest received

 18 867)

 17 979)

 18 591)

 22 343)

 21 788)

Dividends received

 576 658)

 225 010)

 203 998)

 264 745)

 231 763)

Other cash receipts

 105 378)

 107 583)

 107 226)

 106 833)

 106 430)

Total cash inflows

4 781 635)

4 925 490)

4 980 873)

5 072 840)

5 243 844)

 

 

 

 

 

 

Cash outflows

 

 

 

 

 

Superannuation

(241 328)

(257 473)

(270 043)

(282 965)

(298 675)

Borrowing costs

(11 214)

(10 369)

(10 995)

(11 845)

(10 439)

GST payments

(13 500)

(13 500)

(13 500)

(13 500)

(13 500)

Grants and subsidies

(534 203)

(554 215)

(492 918)

(253 162)

(306 754)

Transfers to the Consolidated Fund

(3 737 418)

(3 969 497)

(4 055 184)

(4 283 507)

(4 246 730)

Supplies and consumables

(125 902)

(110 864)

(108 940)

(112 057)

(115 011)

Total cash outflows

(4 663 565)

(4 915 918)

(4 951 580)

(4 957 036)

(4 991 109)

 

 

 

 

 

 

Net cash from (used by) operating activities

 118 070)

9 572)

 29 293)

 115 804)

 252 735)

 

 

 

 

 

 

Cash flows from investing activities

 

 

 

 

 

Payments for acquisition of non-financial assets

(32 301)

(37 015)

(54 419)

(29 241)

(28 391)

Proceeds from the disposal of non-financial assets

 17 249)

 15 108)

 14 797)

 15 374)

 14 937)

Equity injections and cashflows from restructuring

(39 127)

(51 366)

(29 950)

(22 450)

(22 450)

Net advances paid

 766)

 11 646)

 9 778)

 9 939)

 8 410)

Net cash from (used by) investing activities

(53 413)

(61 627)

(59 794)

(26 378)

(27 494)

 

 

 

 

 

 


 

Table 3.10:        Statement of Cash Flows - Administered (continued)

 

2014-15)

 

Budget)

2015-16)

 

Budget)

2016-17)

Forward)

Estimate)

2017-18)

Forward)

Estimate)

2018-19)

Forward)

Estimate)

 

 

$'000)

$'000)

$'000)

$'000)

$'000)

 

 

 

 

 

 

 

Cash flows from financing activities

 

 

 

 

 

Net borrowings

(333 983)

(193 043)

(162 108)

(82 828)

(219 672)

Net cash from (used by) financing activities

(333 983)

(193 043)

(162 108)

(82 828)

(219 672)

 

 

 

 

 

 

Net increase (decrease) in cash and cash equivalents held

(269 326)

(245 098)

(192 609)

 6 598)

 5 569)

 

 

 

 

 

 

Cash and deposits at the beginning of the reporting period

1 175 111)

1 122 589)

 877 491)

 684 882)

 691 480)

Cash and deposits at the end of the reporting period

 905 785)

 877 491)

 684 882)

 691 480)

 697 049)