1 Introduction

Key Issues

       This Budget Paper provides information on an entity‑by‑entity basis that supports the whole‑of‑government information provided in The Budget Budget Paper No 1. Volume 1 provides information about Government Departments and Volume 2 comprises other General Government Sector entities.

       The 2016-17 Budget continues the Government's focus on meeting the financial challenges it faces while also providing significant support to the Government's key policy priorities of:

-  improving health services;

-  supporting education;

-  protecting the vulnerable;

-  jobs, infrastructure and economic growth; and

-  implementing Agenda 2016.

       Other information provided in this Budget Paper includes:

-  information on key deliverables being undertaken by entities, including critical deliverables under the Plan for a Brighter Future: Agenda 2016;

-  details of the Outputs (goods and services) the Government will deliver through departments, agencies and General Government Sector statutory authorities;

-  information which assists in assessing the performance of agencies in delivering Outputs;

-  details of infrastructure projects being undertaken by agencies; and

-  detailed financial statements for the 2016‑17 Budget and Forward Estimates period.

       A summary of some of the important across‑agency issues affecting the Budget information provided by agencies is included in this introductory chapter.

       Detailed information that assists in understanding the financial and other information provided in this Budget Paper and The Budget Budget Paper No 1, is provided in the Guide to the Budget available at www.treasury.tas.gov.au.


 

Budget Paper No 2 Information

This Budget Paper provides information, on an entity‑by‑entity basis, about the Outputs (goods and services) the Government will deliver to the Tasmanian community through General Government Sector entities in 2016‑17 and over the Forward Estimates period (2017‑18 to 2019‑20). Budget Paper No 2 is a major source of financial and non‑financial information on the operations of Government departments, agencies and General Government Sector statutory authorities. The other major source of detailed information on these entities is the annual report required to be published by each entity (2015‑16 Annual Reports will be available by 31 October 2016).

This chapter highlights some of the across‑entity issues which have been taken into account in the preparation, by entities, of the information presented within this Budget Paper. These issues include:

       agency key deliverables information;

       the impact of the implementation of a number of agency restructures;

       the presentation of agency performance information;

       the impact of Reserved by Law funding adjustments; and

       the impact of the 27th Pay in 2015-16.

Budget Paper No 2 comprises two volumes and three separate parts that reflect the differing nature of entities within the General Government Sector:

       Part 1 includes government departments, such as the Department of Education and the Department of Health and Human Services;

       Part 2 includes Parliamentary agencies, such as the House of Assembly and the Legislative Council, and other independent entities, such as the Tasmanian Audit Office and the Office of the Ombudsman; and

       Part 3 includes other statutory authorities within the General Government Sector, such as the Tasmanian Health Service and TasTAFE.

Budget Paper No 2 does not provide information on government businesses. Information on these entities is available in each entity's annual financial report.

Some of the information presented in this Budget Paper is provided on a Ministerial Portfolio basis. Appendix 1.1 to this chapter includes a summary of current Ministerial portfolio responsibilities.


 

Across‑Agency Issues

Agency Key Deliverables

Each major agency chapter includes a table and associated commentary that highlights the major initiatives to be undertaken by the agency over the Budget and Forward Estimates period. These initiatives may be funded through new funding provided in the current Budget, additional funding provided in previous budgets, existing agency resources or a combination of funding sources.

Agency Restructures

The following changes have been reflected in the 2016‑17 Budget, and are effective from 1 July 2016. Consistent with the practice that has been adopted in prior years, the comparative financial information for restructured agencies for 2015‑16 is provided on the basis of the new agency structure.

Department of Justice

       Output 4.3 Supervision of Poppy and Hemp Crops within the Department of Justice has been transferred to Output 2.3 Supervision of Poppy and Hemp Crops within the Department of Primary Industries, Parks, Water and Environment in accordance with reforms to the regulation of the Poppy industry. Responsibility for the Poppy Advisory and Control Board has been transferred from the Attorney-General and Minister for Justice to the Minister for Primary Industries and Water.

       As at 1 November 2015 the Crown's civil litigation functions were transferred from the Office of the Director of Public Prosecutions to the Office of the Solicitor-General within the Department of Justice. It is noted, that while the transfer of functions commenced on 1 November 2015, the Budget transfer takes place from 1 July 2016.

       The former Output 1.7 Anti-Discrimination Commissioner has been renamed Equal Opportunity Tasmania.

       A new Output 4.3 Planning Policy and Reform has been created within the Department. This Output has been created to separate the planning policy functions from statutory assessment functions. Statutory functions remain with Output 4.1 Tasmanian Planning Commission, and policy functions will be undertaken by the new Output 4.3 Planning and Policy Reform.

       The addition of the Building and Construction Portfolio to the Department of Justice has resulted in the transfer of some Outputs between Ministerial portfolios. Output 1.10 Workers Rehabilitation and Compensation Tribunal, Output 3.5 Building and Occupational Licensing Services and Output 4.1 WorkSafe Tasmania have been transferred from the Treasurer to the Minister for Building and Construction. Output 3.4 Consumer Services has been transferred from the Attorney-General and Minister for Justice to the Minister for Building and Construction.


 

Department of Primary Industries, Parks, Water and Environment

       The former Output Group 5 Policy has been consolidated into the Department's corporate overhead cost pool which is spread across all of the Department's outputs. The 2015‑16 Budget estimate will be reported as Output Group 9 for the 2016-17 Budget in order to report the 2015-16 Budget allocation.

       The former Output Group 9 Racing Regulation and Policy becomes Output Group 5 but otherwise remains unchanged.

       The Poppy Advisory and Control Board was transferred from the Department of Justice to the Department of Primary Industries, Parks, Water and Environment and has become Output 2.3 Supervision of Poppy and Hemp Crops within Output Group 2 Primary Industries.

Agency Performance Information

Performance information is collated and reviewed on an ongoing basis by each agency. Due to the timing of the Budget cycle, the previous year's actual performance information is not included, as the previous Budget year is yet to finish. The 2016‑17 Budget Papers therefore display two years of actual information, ending 2014‑15 and two years of forward projections, ending 2016‑17.

Agencies will next report on performance information in their 2015‑16 annual reports, due for release by 31 October 2016.

Reserved by Law Funding Adjustments

Following the 2015-16 Budget, legal advice was received that provided clarification in relation to the classification of some expenditure relating to travel and communications as either Reserved by Law expenditure or general Consolidated Fund expenditure (that is funding approved through the annual Appropriation Act). As a result of this advice, for some agencies there has been a reallocation of expenditure between affected Reserved by Law items and general Consolidated Fund expenditure. There is no impact on the overall Budget position as a result of these changes as it only reflects a reallocation of expenditure between funding sources. For most affected agencies this has resulted in a reduction in certain Reserved by Law allocations, however, for Ministerial and Parliamentary Support there has been an increase in the Reserved by Law amount.

27th Pay in 2015-16

Salary payments to employees in the General Government Sector are made fortnightly. Usually this means that there are 26 pay days in each year. Approximately once every 11 years, there are 27 fortnightly pay days in a financial year with 2015‑16 being such a year. The Department of Health and Human Services makes its salary payments fortnightly on alternative weeks to the rest of the General Government Sector and was therefore not required to make a 27th pay in 2015‑16.


 

In 2015‑16, funding was provided to agencies for this additional cost from the Consolidated Fund. On a cash basis, this was reflected as an increase in 2015‑16 in the level of appropriation to agencies and in Employee benefits in the agency Statement of Cash Flows. However, on an accrual basis, there was no impact on the agency Statement of Comprehensive Income, as the additional cash payment was offset by a reduction in the accrued Employee benefits expense. The reduction in accrued Employee benefits expense was also reflected in the liability for Employee benefits in the agency Statement of Financial Position. It should also be noted that the impact of the 27th pay on the financial statements of some agencies may not have been apparent due to other movements in the financial statements.

Conventions

The information provided in the Budget Papers has been prepared taking into account the following conventions.

       Figures in tables and in the text have been rounded. Discrepancies in tables between totals and sums of component items reflect rounding. Percentage changes in all tables are based on the underlying unrounded amounts.

       The notation used in the Budget Papers is as follows:

na

not available, or not applicable

.

zero, or rounded to zero

$'000

$ thousand

$m

$ million


 

Appendix 1.1: Ministerial Portfolio and Departmental Structure

Table A1.1: General Government Departments


Minister

Portfolio

Department

 

 

 

Hon Will Hodgman MP

Premier

Premier and Cabinet

 

Minister for Tourism, Hospitality and Events

Tourism Tasmania

 

Minister for Sport and Recreation

Premier and Cabinet

 

Minister for Aboriginal Affairs

Premier and Cabinet

 

 

 

 

 

 

Hon Jeremy Rockliff MP

Deputy Premier

 

 

Minister for Education and Training

Education / Premier and Cabinet

 

Minister for Primary Industries and Water

Primary Industries, Parks, Water and Environment

 

 

 

 

 

 

Hon Adam Brooks MP

Minister for Building and Construction

Justice

 

Minister for Mining

State Growth

 

Minister for Racing

Primary Industries, Parks, Water and Environment

 

 

 

 

 

 

Hon Michael Ferguson MP

Minister for Health

Health and Human Services

 

Minister for Information Technology and Innovation

State Growth / Premier and Cabinet

 

 

 

 

 

 

Hon Dr Vanessa Goodwin MLC

Attorney‑General

Justice

.

Minister for Justice

Justice

 

Minister for Corrections

Justice

 

Minister for the Arts

State Growth

Table A1.1: General Government Departments (continued)


Minister

Portfolio

Department

 

 

 

Hon Matthew Groom MP

Minister for State Growth

State Growth

 

Minister for Energy

State Growth

 

Minister for Environment, Parks and Heritage

Primary Industries, Parks, Water and Environment / Premier and Cabinet

 

 

 

 

 

 

Hon Peter Gutwein MP

Treasurer

Treasury and Finance / Justice

 

Minister for Planning and Local Government

Justice / Premier and Cabinet / Treasury and Finance / Primary Industries, Parks, Water and Environment

 

Minister for Forestry

State Growth / Justice

 

 

 

 

 

 

Hon Rene Hidding MP

Minister for Police, Fire and Emergency Management

Police, Fire and Emergency Management

 

Minister for Infrastructure

State Growth

 

 

 

 

 

 

Hon Jacquie Petrusma MP

Minister for Human Services

Health and Human Services

 

Minister for Women

Premier and Cabinet

 

 

 


 

General Government Sector Authorities

These Statutory Authorities are established under specific legislation, which defines the purpose of the authority and the general functions for which it is responsible.

Table A1.2 identifies the current Ministerial portfolio allocations for the General Government Sector Authorities.

Table A1.2: General Government Sector Authorities

Statutory Authority

Portfolio Minister

Portfolio Department

Inland Fisheries Service

Hon Jeremy Rockliff MP

Primary Industries, Parks, Water and Environment

Marine and Safety Tasmania

Hon Rene Hidding MP

State Growth

Royal Tasmanian Botanical Gardens

Hon Matthew Groom MP

Primary Industries, Parks, Water and Environment

State Fire Commission

Hon Rene Hidding MP

Police, Fire and Emergency Management

Tasmanian Health Service

Hon Michael Ferguson MP

Health and Human Services

TasTAFE

Hon Jeremy Rockliff MP

Education