11   Department of Treasury and Finance

Agency Outline

The Department of Treasury and Finance is responsible to the Treasurer, Hon Peter Gutwein MP.

Treasury has responsibility for implementing strategies to achieve the Government's longer-term economic and fiscal objectives. It provides the Government with objective advice on the economic and financial management of the State, implements Government policy and performs financial analysis, monitoring and reporting functions on behalf of the Government.

Treasury undertakes various functions associated with State economic and financial management, including:

·       monitoring and analysing trends in economic conditions and forecasting economic parameters for Tasmania;

·       preparing and monitoring the State Budget, managing the Public Account and providing advice on financial and resource management in the public sector taking into account the Government's strategies and priorities;

·       monitoring and providing advice on the performance and management of government businesses;

·       managing the Government's office accommodation portfolio, managing insurable risks of agencies, managing property sales and whole‑of‑government procurement;

·       providing policy advice on regulatory and financial issues, intergovernmental financial relations and State taxation issues and State taxation collection on behalf of the Commissioner of State Revenue; and

·       supporting the Tasmanian Economic Regulator, the Tasmanian Liquor and Gaming Commission, and the Commissioner for Licensing to carry out their independent regulatory and integrity functions.

This chapter provides the Department's financial information for 2016‑17 and over the Forward Estimates period (2017‑18 to 2019‑20). Further information on the Department is provided at www.treasury.tas.gov.au.


 

Key Deliverables

Table 11.1 provides a summary of the Budget and Forward Estimate allocations for key deliverables.

Table 11.1:        Key Deliverables Statement

 

2016‑17

 

Budget

2017‑18

Forward

Estimate

2018‑19

Forward

Estimate

2019‑20

Forward

Estimate

 

$'000

$'000

$'000

$'000

 

 

 

 

 

Budget Information Management System Project

2 500

2 300

1 499

....

State Revenue System Replacement ‑ Payroll Tax and Duties

718

….

....

....

 

 

 

 

 

Budget Information Management System

The Budget Information Management System project will deliver contemporary technology to be employed by Treasury and all Government agencies to support the State Budget function. The solution will provide more responsive budget functions, implement more efficient business processes and enable greater staff productivity and other operational efficiencies. Furthermore it introduces greater flexibility and adaptability to meet future requirements, will support the implementation of new financial management frameworks and reduces technology risks inherent in current legacy systems. Annual budget papers, revised estimate reports and financial advice to the Treasurer will all be supported by enhanced information management provided by the new system.

To date the first three phases of the project have been completed including: a market assessment and options analysis; the documentation of existing processes and detailed requirements; and the release of a Request for Tender for the implementation of a commercial off the shelf solution. The last phase of the project is currently underway and involves activities to procure a suitable system, undertake design and validation, and implement the solution. The project will commence product configuration in mid‑2016 followed by full implementation during 2017 and is scheduled for completion in 2018.

Centralised Property Management

The first stage of this Government commitment, the implementation of centralised management and coordination of major office accommodation leases for Government within the Hobart CBD, has been fully implemented. This strategic approach to major leases is enabling more efficient and effective management of the Government's leased office accommodation in the Hobart CBD.

Treasury has commenced the second stage of centralised property management with a review of major office accommodation leases in Launceston. Treasury is working with agencies to ensure that all leases are reviewed leading up to expiry to achieve the best use of office space and optimise whole‑of‑government outcomes in relation to more efficient and effective management of the Government's leased office accommodation.


 

Financial Management Framework

The Public Account Act 1986 and the Financial Management and Audit Act 1990 are to be replaced with a new legislative framework that will improve the efficiency, effectiveness and transparency of government financial management.

Treasury will be working with stakeholder groups to provide targeted communications and training prior to the planned transition to the new legislation on 1 July 2018. This timeframe will provide sufficient time to implement any required changes for the 2018‑19 Budget and to align with the implementation of the new Budget Information Management System.

Joint Select Committee Review into the Gaming Industry

The Government has committed to a transparent and consultative process to determine the structure of the Tasmanian gaming market following the expiry, in 2023, of the Federal Group's exclusive right to operate EGMs, Keno and casino table games in Tasmania. A Joint Select Committee of both Houses of Parliament will undertake a full and public review of possible options and make findings regarding alternative approaches, after considering structural models and experiences in other jurisdictions; the nature of the gaming market and potential future products; and benefits and costs of different market structures. In 2016-17 Treasury will provide advice on options and the implications of alternative approaches and provide support to the Committee, as required.

Government Business Enterprise/State-owned Company Reform

Retirement Benefits Fund Review

Following the completion of a strategic review of the Retirement Benefits Fund (RBF) to identify the most appropriate means to provide superannuation to public sector employees and members of RBF into the future, in July 2015 the Government announced its intention to:

·       consolidate the RBF Tasmanian Accumulation Scheme with Tasplan and Quadrant; and

·       conduct an open tender process to secure a provider for the provision of administration and investment management services for the RBF defined benefit schemes.

On 30 November 2015, Tasplan merged with Quadrant to become one entity. This merger was independent to the public sector superannuation reform process.

Treasury prepared the Public Sector Superannuation Reform Bill 2016 to support the Government's reforms. In April 2016, the Bill was passed by the House of Assembly and subsequently introduced into the Legislative Council. Its purpose is to seek parliamentary approval for the new administration arrangements for the provision of public sector superannuation in Tasmania, which includes:

·       the establishment of the Superannuation Commission to replace the current RBF Board and be responsible for the management of the defined benefit schemes;

·       the nomination of an initial default superannuation fund; and

·       provision for the transfer of all current RBF accumulation members and associated investments to the new default superannuation fund.


 

The focus for 2016‑17 will include:

·       the preparation of replacement regulations, consequential legislative amendments and amendments to Trust Deeds to support the reforms;

·       assisting the Government with the appointment of three members to the Superannuation Commission;

·       establishing a branch within Treasury to support the Commission and manage the defined benefit schemes;

·       assisting the successor fund transfer of the RBF Tasmanian Accumulation Scheme members and assets to Tasplan; and

·       undertaking an open tender process to secure a provider of administration and investment management services for the RBF defined benefit schemes.

Forestry Tasmania

The Government has commenced implementation of the Forestry Tasmania transition after considering the outcomes of the Forestry Tasmania Review in 2015. The Review concluded that Forestry Tasmania's current business model will not provide a long-term financially sustainable approach to manage and make commercially available Tasmania's production native forest resources. The Government is seeking to transition Forestry Tasmania to a model that is more financially sustainable and maximises opportunities for the private sector in the public native forest supply chain. Funds from the sale of Forestry Tasmania's hardwood plantation estate will be used to support this transition.

The focus for 2015‑16 has been on industry consultation, consideration of a preferred composite operating model, undertaking an expression of interest process for residue solutions and the due diligence process for the sale of Forestry Tasmania's hardwood plantations.

In 2016‑17, Treasury will continue to assist Government with the transition and implementation of its decisions arising from the Review, including the plantation sale process.

Parliament Square

The parliament square redevelopment is now well advanced with the structure of the new Salamanca Building nearing completion and internal fitout works underway. The fitout design and assembly is being integrated with the current building construction process with the Salamanca Building scheduled for completion in early 2017. Concurrent with the new works, the refurbishment and revitalisation of the heritage buildings on Davey Street and Salamanca Place continues to be a significant focus of the redevelopment. When complete, parliament square will include a new premium office building (Salamanca Building), boutique hotel, specialty retail and food and beverage offerings.

The redevelopment of parliament square will revitalise the cultural, business and heritage aspects of Hobart's cityscape, providing a strong link from the city centre to the waterfront and Salamanca Place. The development will see the approximately 26 000 plus square metre, $150 million private investment project bring over 400 jobs to the community.

Further information on the project is provided at www.treasury.tas.gov.au/parliamentsquare.


 

Revenue Collection - Compliance Activities

This 2015‑16 Budget initiative involved the appointment of two additional revenue compliance inspectors which enabled the Compliance Section of the State Revenue Office to accelerate the audit of compliance targets, thereby protecting and improving the State's revenue base, and ensuring that the correct amount of taxation revenue is being collected from taxpayers. Activity was primarily focussed in the areas of land and payroll tax, adopting a risk management framework. The initiative has been successful with the additional investment in compliance activities being more than offset by additional tax revenues arising from increased taxpayer compliance with their tax obligations.

This initiative continues in 2016‑17, during which time the State Revenue Office will continue to work on improving education for businesses approaching the payroll tax threshold and for property purchasers on their land tax obligations.

State Revenue System Replacement - Payroll Tax and Duties

The State Revenue Office is currently replacing the State's ageing revenue collection system with a modern application, Client View, to increase efficiency, improve taxpayer experience and data quality and remove legacy technology risks.

Client View is a taxation collection and revenue system that presents a consistent view of client details, net debtor situation and service delivery communication events across all revenue lines. The first phase of the replacement, relating to land tax, was successfully completed in early 2015.

Phase two of the project is on track to be completed in mid‑2016. This phase involves development of modules for the management of payroll tax and insurance and motor vehicle duties.

Documentation of the business requirements for the final phase, relating to duty on property transfers, is well progressed. Completion of the final phase will allow the retirement of the ageing Tasmanian Revenue and Collection System by 30 June 2017.


 

Output Information

Outputs of the Department of Treasury and Finance are provided under the following Output Groups:

·       Output Group 1 - Financial and Resource Management Services;

·       Output Group 2 - Economic and Fiscal Policy Advice;

·       Output Group 3 - Revenue and Regulatory Management Services; and

·       Output Group 4 - Community Assistance.

Table 11.2 provides an Output Group Expense Summary for the Department.


 

Table 11.2:        Output Group Expense Summary

 

2015-16)

 

Budget)

2016-17)

 

Budget)

2017-18)

Forward)

Estimate)

2018-19)

Forward)

Estimate)

2019-20)

Forward)

Estimate)

 

$'000)

$'000)

$'000)

$'000)

$'000)

 

 

 

 

 

 

Treasurer

 

 

 

 

 

 

 

 

 

 

 

Output Group 1 - Financial and Resource Management Services

 

 

 

 

 

1.1  Budget Development and Management

 2 444)

 2 440)

 2 525)

 2 605)

 2 735)

1.2  Financial Management and Accounting Services

 3 309)

 3 212)

 3 309)

 3 390)

 3 537)

1.3  Shareholder Advice on Government Businesses

 2 346)

 2 292)

 2 431)

 2 487)

 2 592)

1.4  Government Property and Accommodation Services1

  991)

 1 256)

 1 111)

 1 015)

  903)

1.5  Government Procurement Services

 2 474)

 2 443)

 2 488)

 2 538)

 2 600)

 

 11 564)

 11 643)

 11 864)

 12 035)

 12 367)

Output Group 2 - Economic and Fiscal Policy Advice

 

 

 

 

 

2.1  Economic Policy Advice

 1 210)

 1 315)

 1 357)

 1 391)

 1 453)

2.2  Regulatory Policy

 2 521)

 2 493)

 2 579)

 2 636)

 2 749)

2.3  Intergovernmental Financial Matters

 1 128)

 1 118)

 1 152)

 1 177)

 1 229)

 

 4 859)

 4 926)

 5 088)

 5 204)

 5 431)

Output Group 3 - Revenue and Regulatory Management Services

 

 

 

 

 

3.1  Tax Administration and Revenue Collection

 8 731)

 9 032)

 9 244)

 9 457)

 9 893)

3.2  Regulation and Administration of Liquor and Gaming

 6 263)

 6 323)

 6 516)

 6 656)

 6 932)

3.3  Economic Regulation2

 1 823)

 1 825)

 2 066)

 1 906)

 1 960)

 

 16 817)

 17 180)

 17 826)

 18 019)

 18 785)

Output Group 4 - Community Assistance

 

 

 

 

 

4.1  Bass Strait Islands Community Service Obligation

 9 400)

 9 900)

 10 123)

 10 351)

 10 583)

4.2  Public Trustee Community Service Obligation3

 1 642)

 1 978)

 2 023)

 2 068)

 2 115)

4.3  Community Support Levy

 4 564)

 4 480)

 4 485)

 4 490)

 4 496)

 

 15 606)

 16 358)

 16 631)

 16 909)

 17 194)

 

 

 

 

 

 

TOTAL

 48 846)

 50 107)

 51 409)

 52 167)

 53 777)

 

 

 

 

 

 

Notes:

1.   The increase in Government Property and Accommodation Services (Output 1.4) in 2016-17 is due to resourcing for the parliament square Project which will be finalised in 2018-19.

2.   The fluctuation in expenditure on Economic Regulation (Output 3.3) reflects the work program of the Tasmanian Economic Regulator. Water and sewerage pricing investigations will be completed in 2017-18.

3.   The increase in the Public Trustee Community Service Obligation (Output 4.2) in 2016-17 is due to the agreed increase in funding as part of the recently completed pricing review.

 


 

Output Group 1:    Financial and Resource Management Services

1.1 Budget Development and Management

This Output includes management of the State Budget process, the provision of advice on budgetary issues and monitoring of the State's financial performance against the Government's Fiscal Strategy.

1.2 Financial Management and Accounting Services

This Output includes whole‑of‑government financial management activities and the provision of advice on financial management and reform, consistent with the Government's strategies and priorities. It supports a range of services relating to the management of financial assets and liabilities, associated risk mitigation strategies and the preparation of whole‑of‑government financial and statistical reports.

1.3 Shareholder Advice on Government Businesses

This Output includes monitoring and provision of advice on government businesses. It supports the provision of advice on reforms and policies relating to the Government's ownership of businesses. Submissions and presentations to the credit rating agencies are included in this Output.

1.4 Government Property and Accommodation Services

This Output covers the administration of Government property and accommodation services, including the management of government‑owned and leased office buildings and the disposal of surplus Crown property.

1.5 Government Procurement Services

This Output includes the provision of advice in relation to Government procurement activities and the administration of whole‑of‑government contracts and the Tasmanian Risk Management Fund.


Table 11.3:        Performance Information ‑ Output Group 1

Performance Measure

Unit of Measure

2013‑14

Actual

2014‑15

Actual

2015‑16

Target

2016‑17

Target

 

 

 

 

 

 

Stakeholder satisfaction rating (expressed as a percentage)1

%

79

79

na

>90

Proportion of financial reports receiving an unqualified audit opinion2

%

 

100

 

100

 

100

 

100

Treasury‑managed property vacancy rate3

%

3

5.2

<1.5

<1.5

State Service workers' compensation contributions as a percentage of the average premium charged by private insurers4

%

 

86

 

90

 

<80

 

<80

Proportion of financial reports published by the required date5

%

 

100

 

100

 

100

 

100

Variance between Budget estimate and actual GBE/SOC returns6

%

 

15.6

 

5.7

 

<5.0

 

<5.0

 

 

 

 

 

 

Notes:

1.   The satisfaction rating of the quality of the Department's services is obtained from the results of the Department's stakeholder survey. The Department's stakeholder survey was previously undertaken every two years. In November 2015, to assist in strengthening stakeholder engagement and collaboration an extra survey of key external stakeholders was undertaken to assess how the Department was meeting their expectations during 2014-15. This information was not available for inclusion in the 2014‑15 Annual Report. The next stakeholder survey is scheduled for November 2017.

2.   An unqualified audit opinion from the Auditor-General indicates that the financial reports are a true and accurate reflection of the Government's finances.

3.   The vacancy rate is the proportion of all owned and leased office space managed by the Department that is currently vacant and available for occupation. The increase in the vacancy rate is primarily due to Forestry Tasmania vacating Stoney Rise, Devonport and the Office of the Tasmanian Economic Regulator relocating from 111 Macquarie Street, Hobart.

4.   The Tasmanian Risk Management Fund includes a self-insurance scheme for the workers' compensation liabilities of participating agencies. An indication of the Government's management of workers' compensation claims can be obtained by comparing the workers' compensation contributions paid by agencies to the Fund with the workers' compensation premiums charged by private insurers. The measure is calculated by comparing average agency workers' compensation contributions, as a proportion of salaries, with the premium rate of private insurers. The Fund's performance against the indicator in 2014-15 has changed from the previous year mainly due to a moderate decrease in private insurers' contribution rates.

5.   The whole-of-government financial reports published in 2014-15 were the Preliminary Outcomes Report 2013-14, Treasurer's Annual Financial Report 2013‑14, September Quarterly Report 2014‑15, December Quarterly Report 2014‑15 and the March Quarterly Report 2014‑15.

6.   Returns from government businesses and State owned Companies comprise dividends, tax equivalent payments, rate equivalent payments and guarantee fees. The positive variance to the Budget estimates in 2013-14 and 2014‑15 relates to variations in the performance of the businesses, largely due to external influences impacting on profitability.

 

 


Output Group 2:   Economic and Fiscal Policy Advice

2.1 Economic Policy Advice

This Output relates to the provision of advice on international, national and Tasmanian economic conditions and developments, and forecasting economic trends in the Tasmanian economy. It also includes the provision of advice on economic policy and reform issues, including Council of Australian Governments and other national policy initiatives.

2.2 Regulatory Policy

This Output includes the provision of advice relating to the regulation and taxation of gaming activities and licensing of liquor sales, state revenue policy and the legislative review program.

2.3 Intergovernmental Financial Matters

This Output relates to provision of advice on all intergovernmental financial matters, including support to the State Grants Commission.


 

Table 11.4:        Performance Information ‑ Output Group 2

Performance Measure

Unit of Measure

2013‑14

Actual

2014‑15

Actual

2015‑16

Target

2016‑17

Target

 

 

 

 

 

 

Stakeholder satisfaction rating (expressed as a percentage)1

%

 

89

 

86

 

na

 

>90

Variance between Budget estimate and actual taxation receipts2

%

 

1.9

 

2.6

 

<5.0

 

<5.0

Variance between Budget estimate and actual Australian Government payments3

%

 

2.4

 

5.6

 

<5.0

 

<5.0

Variance between Budget forecast and ABS estimate of Gross State Product growth4

 

% pt

0.8

0.1

<1.0

<1.0

Variance between Budget forecast and ABS estimate of employment growth4

 

% pt

0.9

1.3

<1.0

<1.0

 

 

 

 

 

 

Notes:

1.   The satisfaction rating of the quality of the Department's services is obtained from the results of the Department's stakeholder survey. The Department's stakeholder survey was previously undertaken every two years. In November 2015, to assist in strengthening stakeholder engagement and collaboration an extra survey of key external stakeholders was undertaken to assess how the Department was meeting their expectations during 2014‑15. This information was not available for inclusion in the Treasury's 2014‑15 Annual Report. The next stakeholder survey is scheduled for November 2017.

2.   The accuracy of the Department's taxation receipt forecasts is determined by comparing the Budget with the actual end of year outcome. The information published in Treasury's 2014‑15 Annual Report was based on the Preliminary Outcomes Report 2014‑15 rather than the final audited outcome.

3.   The accuracy of the Department's Australian Government payments can be determined by comparing the State Budget estimate for the financial year with actual payment advices received from the Australian Government. The information published in Treasury's 2014‑15 Annual Report was based on the Preliminary Outcomes Report 2014‑15 rather than the final audited outcome. The Australian Government Grant revenue was higher than expected due to the increase in specific purpose payments.

4.   The accuracy of the Department's gross state product and employment growth forecasts are determined by comparing the Budget forecasts with the most recent estimates of growth for the financial year published by the Australian Bureau of Statistics. Gross state product growth information was not available for inclusion in Treasury's 2014-15 Annual Report.


 

Output Group 3:   Revenue and Regulatory Management Services

3.1 Tax Administration and Revenue Collection

This Output comprises the administration of taxation legislation and the collection of State revenue, including monitoring the compliance of taxpayers with State revenue legislation. It also includes the administration of various grants, subsidies and concessions to the Tasmanian community.

3.2 Regulation and Administration of Liquor and Gaming

This Output provides for the regulation and control of liquor licensing, casino gaming, gaming machines, internet gaming, Keno, minor gaming, betting exchanges and totalizators. It includes the provision of support to the Tasmanian Liquor and Gaming Commission in the discharge of its statutory functions under Liquor Licensing and Gaming Control Acts and to the Commissioner for Licensing in discharging his statutory functions under the Liquor Licensing Act 1990.

3.3 Economic Regulation

This Output comprises provision of support to the Tasmanian Economic Regulator in the exercise of its statutory functions, which include the regulation of the electricity and gas supply industries, the economic regulation of the water and sewerage sector and the undertaking of independent pricing reviews on behalf of the Government.


Table 11.5:        Performance Information ‑ Output Group 3

Performance Measure

Unit of Measure

  2013‑14

Actual

  2014‑15

Actual

  2015‑16

Target

  2016‑17

Target

 

 

 

 

 

 

Stakeholder satisfaction rating (expressed as a percentage)1

%

84

81

na

>90

Total overdue taxation debt as a percentage of total taxation revenue2

%

1.5

1.4

<0.8

<0.8

Percentage of formal recommendations accepted by the Tasmanian Liquor and Gaming Commission3

%

98

93

>80

>80

Percentage of objections in which the Commissioner of State Revenue's assessment or decision was confirmed4

%

75

78

>80

>80

Revenue Branch operating expenses as a percentage of taxation revenue5

%

1.0

1.0

<1.5

<1.5

Percentage of liquor applications submitted to the Licensing Board (Commissioner) within 40 days of receipt6

%

100

95

>80

>80

 

 

 

 

 

 

Notes:

1.   The satisfaction rating of the quality of the Department's services is obtained from the results of the Department's Stakeholder Survey. The Department's stakeholder survey was previously undertaken every two years. In November 2015, to assist in strengthening stakeholder engagement and collaboration an extra survey of key external stakeholders was undertaken to assess how the Department was meeting their expectations during 2014‑15. This information was not available for inclusion in Treasury's 2014‑15 Annual Report. The next stakeholder survey is scheduled for November 2017.

2.   In providing revenue management services to the Commissioner of State Revenue, the Department seeks to ensure that taxpayers are well informed of their obligations and that tax debt stress and overdue taxation debts are minimised. Accordingly, the target is for overdue taxation debt to be a very small percentage of total taxation revenue. This measure has been redefined in 2014‑15 to align with the Revenue Office's annual inter jurisdictional benchmarking exercise. From 2014‑15, overdue taxation debt is based on overdue debt as at 30 June rather than as a monthly average for the financial year, while total taxation revenue continues to be measured as all taxation revenue collected for the full year. The higher levels of debt in 2013‑14 and 2014‑15 were influenced by better identification of overdue debt through system improvements and a more streamlined and consistent process for moving unpaid amounts through a debtor management process.

3.   While recognising that the Tasmanian Liquor and Gaming Commission is an independent statutory body, a measure of the quality of the services provided is the proportion of all formal recommendations contained in decision papers that are accepted by the Commission.

4.   Objections may be lodged against assessments issued to clients or decisions of the Commissioner, Deputy Commissioner or a delegate of the Commissioner. The Department seeks to ensure that the original assessments and decisions are accurate and consequently that the number of successful objections is low.

5.   An indication of the efficiency of the revenue management services provided by the Department can be gained by comparing total taxation revenue collected with the operating costs required to administer and collect that revenue.

6.   The Department assisted the Licensing Board of Tasmania by receiving applications for licences, undertaking investigations on behalf of the Commissioner for Licensing and providing recommendations to the Board on whether a licence applicant was qualified in accordance with the requirements of the Liquor Licensing Act. Since August 2015 these functions have been undertaken by the Commissioner for Licensing. The measure relates to the time taken by the Department to undertake its investigations for the Commissioner (prior to August 2015 for the Board).

 

 


Output Group 4: Community Assistance

4.1 Bass Strait Islands Community Service Obligation

This Output comprises the payment of the Bass Strait Islands Community Service Obligation to Hydro Tasmania relating to the subsidised supply of electricity and pensioner concessions to electricity customers on King and Flinders Island.

4.2 Public Trustee Community Service Obligation

This Output comprises the payment of the Community Service Obligation to the Public Trustee relating to the provision of trustee services to clients with low asset values.

4.3 Community Support Levy

This Output comprises the collection and disbursement of funds through the Department's Revenue, Gaming and Licensing Division from the Community Support Levy.


 

Capital Investment Program

Table 11.6 provides financial information for the Department's Capital Investment Program. Further information on the Capital Investment Program is provided in chapter 6 of The Budget Budget Paper No 1.

Table 11.6: Capital Investment Program

 

Estimated)

Total)

Cost)

2016-17)

 

Budget)

2017-18)

Forward)

Estimate)

2018-19)

Forward)

Estimate)

2019-20)

Forward)

Estimate)

 

$'000)

$'000)

$'000)

$'000)

$'000)

 

 

 

 

 

 

Treasurer

 

 

 

 

 

Budget Information Management System Project1

7 517)

 2 500)

 2 300)

 1 499)

....)

State Revenue System Replacement - Payroll Tax and Duties

2 115)

  718)

....)

....)

....)

 

 

 

 

 

 

Total CIP Allocations

 

 3 218)

 2 300)

 1 499)

....)

 

 

 

 

 

 

Note:

1.   The 2016-17 Budget and Forward Estimates for the Budget Information Management System Project have been reviewed since the 2015-16 Budget to reflect the proposed work program. The total estimated project cost remains at $7.5 million.

 

 


Detailed Budget Statements

Table 11.7:        Statement of Comprehensive Income

 

2015-16)

 

Budget)

2016-17)

 

Budget)

2017-18)

Forward)

Estimate)

2018-19)

Forward)

Estimate)

2019-20)

Forward)

Estimate)

 

$'000)

$'000)

$'000)

$'000)

$'000)

 

 

 

 

 

 

Revenue and other income from transactions

 

 

 

 

 

Appropriation revenue - recurrent

 38 888)

 39 657)

 40 575)

 41 423)

 42 089)

Appropriation revenue - works & services1

 3 240)

 3 218)

 2 300)

 1 499)

....)

Other revenue from government

  276)

....)

....)

....)

....)

Fees and fines

 8 523)

 8 325)

 8 745)

 8 685)

 8 602)

Other revenue2

 1 133)

 1 340)

 1 182)

 1 069)

  917)

Total revenue and other income from transactions

 52 060)

 52 540)

 52 802)

 52 676)

 51 608)

 

 

 

 

 

 

Expenses from transactions

 

 

 

 

 

Employee benefits

 26 352)

 27 118)

 27 805)

 28 498)

 29 087)

Depreciation and amortisation3

  221)

  247)

  452)

  450)

 1 197)

Supplies and consumables

 6 831)

 6 562)

 6 695)

 6 481)

 6 468)

Grants and subsidies

 15 304)

 16 060)

 16 333)

 16 611)

 16 895)

Other expenses

  138)

  120)

  124)

  127)

  130)

Total expenses from transactions

 48 846)

 50 107)

 51 409)

 52 167)

 53 777)

 

 

 

 

 

 

Net result from transactions (net operating balance)

 3 214)

 2 433)

 1 393)

  509)

(2 169)

 

 

 

 

 

 

Net result

 3 214)

 2 433)

 1 393)

  509)

(2 169)

 

 

 

 

 

 

Comprehensive result

 3 214)

 2 433)

 1 393)

  509)

(2 169)

 

 

 

 

 

 

Notes:

1.   The decrease in Appropriation revenue ‑ works & services from 2015‑16 reflects the timing of Capital Investment Program funding.

2.   The increase in Other revenue in 2016-17 and decrease in 2017-18 is due to the timing of reimbursements of costs associated with the parliament square project.

3.   The increase in Depreciation and amortisation from 2017‑18 reflects amortisation following completion of the State Revenue System Replacement (Payroll Tax and Duties) Project in 2016‑17 and the Budget Information Management System Project in 2018‑19.

 

 


 

Table 11.8:        Statement of Comprehensive Income ‑ Administered

 

2015-16)

 

Budget)

2016-17)

 

Budget)

2017-18)

Forward)

Estimate)

2018-19)

Forward)

Estimate)

2019-20)

Forward)

Estimate)

 

$'000)

$'000)

$'000)

$'000)

$'000)

 

 

 

 

 

 

Revenue and other income from transactions

 

 

 

 

 

Fees and fines

 1 349)

 1 428)

 1 447)

 1 466)

 1 484)

Total revenue and other income from transactions

 1 349)

 1 428)

 1 447)

 1 466)

 1 484)

 

 

 

 

 

 

Expenses from transactions

 

 

 

 

 

Transfers to the Consolidated Fund

 1 349)

 1 428)

 1 447)

 1 466)

 1 484)

Total expenses from transactions

 1 349)

 1 428)

 1 447)

 1 466)

 1 484)

 

 

 

 

 

 

Net result from transactions (net operating balance)

....)

....)

....)

....)

....)

 

 

 

 

 

 

Net result

....)

....)

....)

....)

....)

 

 

 

 

 

 

Comprehensive result

....)

....)

....)

....)

....)

 

 

 

 

 

 


 

Table 11.9:        Revenue from Appropriation by Output

 

2015-16)

 

Budget)

2016-17)

 

Budget)

2017-18)

Forward)

Estimate)

2018-19)

Forward)

Estimate)

2019-20)

Forward)

Estimate)

 

$'000)

$'000)

$'000)

$'000)

$'000)

 

 

 

 

 

 

Treasurer

 

 

 

 

 

 

 

 

 

 

 

Output Group 1 - Financial and Resource Management Services

 

 

 

 

 

1.1  Budget Development and Management

 2 447)

 2 408)

 2 464)

 2 531)

 2 576)

1.2  Financial Management and Accounting Services

 3 220)

 3 073)

 3 129)

 3 187)

 3 221)

1.3  Shareholder Advice on Government Businesses

 2 214)

 2 159)

 2 272)

 2 316)

 2 347)

1.4  Government Property and Accommodation Services

  720)

  798)

  813)

  829)

  864)

 

 8 601)

 8 438)

 8 678)

 8 863)

 9 008)

Output Group 2 - Economic and Fiscal Policy Advice

 

 

 

 

 

2.1  Economic Policy Advice

 1 205)

 1 292)

 1 320)

 1 348)

 1 366)

2.2  Regulatory Policy

 2 512)

 2 445)

 2 499)

 2 546)

 2 573)

2.3  Intergovernmental Financial Matters

 1 124)

 1 095)

 1 119)

 1 138)

 1 151)

 

 4 841)

 4 832)

 4 938)

 5 032)

 5 090)

Output Group 3 - Revenue and Regulatory Management Services

 

 

 

 

 

3.1  Tax Administration and Revenue Collection

 8 613)

 8 782)

 8 966)

 9 158)

 9 277)

3.2  Regulation and Administration of Liquor and Gaming

 5 764)

 5 701)

 5 821)

 5 925)

 5 990)

 

 14 377)

 14 483)

 14 787)

 15 083)

 15 267)

Output Group 4 - Community Assistance

 

 

 

 

 

4.1  Bass Strait Islands Community Service Obligation

 9 400)

 9 900)

 10 123)

 10 351)

 10 583)

4.2  Public Trustee Community Service Obligation1

 1 642)

 1 978)

 2 023)

 2 068)

 2 115)

 

 11 042)

 11 878)

 12 146)

 12 419)

 12 698)

 

 

 

 

 

 

Capital Investment Program2

 3 240)

 3 218)

 2 300)

 1 499)

....)

 

Department of Treasury and Finance

 

 

 

 

 

Total Recurrent Services

 38 861)

 39 631)

 40 549)

 41 397)

 42 063)

Total Works and Services2

 3 240)

 3 218)

 2 300)

 1 499)

....)

 

 42 101)

 42 849)

 42 849)

 42 896)

 42 063)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

Table 11.9:        Revenue from Appropriation by Output (Continued)

 

2015-16)

 

Budget)

2016-17)

 

Budget)

2017-18)

Forward)

Estimate)

2018-19)

Forward)

Estimate)

2019-20)

Forward)

Estimate)

 

$'000)

$'000)

$'000)

$'000)

$'000)

Reserved by Law

 

 

 

 

 

Contribution to the Community Support Levy Account from Betting Exchange Revenues (Gaming Control Act 1993, Section 151)

  27)

  26)

  26)

  26)

  26)

 

  27)

  26)

  26)

  26)

  26)

 

 

 

 

 

 

Appropriation Carried Forward3

276)

....)

....)

....)

....)

 

 

 

 

 

 

Total Revenue from Appropriation

 42 404)

 42 875)

 42 875)

 42 922)

 42 089)

 

 

 

 

 

 

Controlled Revenue from Appropriation

 42 404)

 42 875)

 42 875)

 42 922)

 42 089)

 

 42 404)

 42 875)

 42 875)

 42 922)

 42 089)

 

 

 

 

 

 

Notes:

1.   The increase in the Public Trustee Community Service Obligation (Output 4.2) in 2016‑17 is due to the agreed increase in funding as part of the recently completed pricing review.

2.   The decreases in Capital Investment Program and Total Works and Services from 2015‑16 reflect the cash flow profile of Capital Investment Program funding for the State Revenue System Replacement (Payroll Tax and Duties) Project and the Budget Information Management System Project.

3.   The Appropriation Carried Forward in 2015‑16 reflects adjusted cash flows for the Capital Investment Program funding for the State Revenue System Replacement (Payroll Tax and Duties) Project and the Budget Information Management System Project.

 


 

Table 11.10:      Statement of Financial Position as at 30 June

 

2016)

 

Budget)

2017)

 

Budget)

2018)

Forward)

Estimate)

2019)

Forward)

Estimate)

2020)

Forward)

Estimate)

 

$'000)

$'000)

$'000)

$'000)

$'000)

 

 

 

 

 

 

Assets

 

 

 

 

 

Financial assets

 

 

 

 

 

Cash and deposits

 3 694)

 3 848)

 3 529)

 3 139)

 2 562)

Receivables

  338)

  308)

  312)

  316)

  320)

Other financial assets

  389)

  427)

  435)

  443)

  451)

 

 4 421)

 4 583)

 4 276)

 3 898)

 3 333)

Non-financial assets

 

 

 

 

 

Property, plant and equipment

  977)

  929)

  873)

  825)

  782)

Heritage and cultural assets

  84)

  84)

  84)

  84)

  84)

Intangibles1

 5 828)

 7 048)

 9 054)

 10 254)

 9 203)

Other assets

  477)

  445)

  450)

  454)

  459)

 

 7 366)

 8 506)

 10 461)

 11 617)

 10 528)

 

 

 

 

 

 

Total assets

 11 787)

 13 089)

 14 737)

 15 515)

 13 861)

 

 

 

 

 

 

Liabilities

 

 

 

 

 

Payables2

  742)

 1 758)

 1 794)

 1 832)

 1 872)

Employee benefits

 7 333)

 7 259)

 7 478)

 7 709)

 8 173)

Other liabilities

  193)

  166)

  166)

  166)

  177)

Total liabilities

 8 268)

 9 183)

 9 438)

 9 707)

 10 222)

 

 

 

 

 

 

Net assets (liabilities)

 3 519)

 3 906)

 5 299)

 5 808)

 3 639)

 

 

 

 

 

 

Equity

 

 

 

 

 

Accumulated funds

 3 519)

 3 906)

 5 299)

 5 808)

 3 639)

Total equity

 3 519)

 3 906)

 5 299)

 5 808)

 3 639)

 

 

 

 

 

 

Notes:

1.   The increase in Intangibles reflects the work‑in‑progress on the Budget Information Management System Project and the State Revenue System Replacement (Payroll Tax and Duties) Project.

2.   The increase in Payables from 2017 is due to timing of payments of claims associated with the Bass Strait Islands Community Service Obligation.


 

Table 11.11:      Statement of Cash Flows

 

2015-16)

 

Budget)

2016-17)

 

Budget)

2017-18)

Forward)

Estimate)

2018-19)

Forward)

Estimate)

2019-20)

Forward)

Estimate)

 

$'000)

$'000)

$'000)

$'000)

$'000)

 

 

 

 

 

 

Cash flows from operating activities

 

 

 

 

 

Cash inflows

 

 

 

 

 

Appropriation receipts - recurrent

 38 888)

 39 657)

 40 575)

 41 423)

 42 089)

Appropriation receipts - capital1

 3 240)

 3 218)

 2 300)

 1 499)

....)

Fees and fines

 8 522)

 8 316)

 8 736)

 8 676)

 8 593)

GST receipts

 1 600)

 1 600)

 1 600)

 1 600)

 1 600)

Other cash receipts

 1 133)

 1 340)

 1 182)

 1 069)

  917)

Total cash inflows

 53 383)

 54 131)

 54 393)

 54 267)

 53 199)

 

 

 

 

 

 

Cash outflows

 

 

 

 

 

Employee benefits

(23 739)

(23 756)

(24 443)

(25 042)

(25 337)

Superannuation

(3 039)

(3 031)

(3 116)

(3 197)

(3 245)

GST payments

(1 600)

(1 600)

(1 600)

(1 600)

(1 600)

Grants and subsidies

(15 304)

(16 060)

(16 333)

(16 611)

(16 895)

Supplies and consumables

(6 826)

(6 561)

(6 695)

(6 480)

(6 468)

Other cash payments

(121)

(120)

(124)

(127)

(130)

Total cash outflows

(50 629)

(51 128)

(52 311)

(53 057)

(53 675)

 

 

 

 

 

 

Net cash from (used by) operating activities

 2 754)

 3 003)

 2 082)

 1 210)

(476)

 

 

 

 

 

 

Cash flows from investing activities

 

 

 

 

 

Payments for acquisition of non-financial assets1

(3 516)

(3 319)

(2 401)

(1 600)

(101)

Net cash from (used by) investing activities

(3 516)

(3 319)

(2 401)

(1 600)

(101)

 

 

 

 

 

 

Net increase (decrease) in cash and cash equivalents held

(762)

(316)

(319)

(390)

(577)

 

 

 

 

 

 

Cash and deposits at the beginning of the reporting period

 4 456)

 4 164)

 3 848)

 3 529)

 3 139)

Cash and deposits at the end of the reporting period

 3 694)

 3 848)

 3 529)

 3 139)

 2 562)

 

 

 

 

 

 

Note:

1.   The decreases in Appropriation receipts ‑ capital and Payments for acquisition of non‑financial assets from 2015‑16 reflect the timing of cash flows for the Budget Information Management System Project and the State Revenue System Replacement (Payroll Tax and Duties) Project.


 

Table 11.12:      Statement of Cash Flows - Administered

 

2015-16)

 

Budget)

2016-17)

 

Budget)

2017-18)

Forward)

Estimate)

2018-19)

Forward)

Estimate)

2019-20)

Forward)

Estimate)

 

$'000)

$'000)

$'000)

$'000)

$'000)

 

 

 

 

 

 

Cash flows from operating activities

 

 

 

 

 

Cash inflows

 

 

 

 

 

Fees and fines

 1 349)

 1 428)

 1 447)

 1 466)

 1 484)

Total cash inflows

 1 349)

 1 428)

 1 447)

 1 466)

 1 484)

 

 

 

 

 

 

Cash outflows

 

 

 

 

 

Transfers to the Consolidated Fund

(1 349)

(1 428)

(1 447)

(1 466)

(1 484)

Total cash outflows

(1 349)

(1 428)

(1 447)

(1 466)

(1 484)

 

 

 

 

 

 

 

 

 

 

 

 

Net increase (decrease) in cash and cash equivalents held

....)

....)

....)

....)

....)

 

 

 

 

 

 

Cash and deposits at the beginning of the reporting period

....)

....)

....)

....)

....)

Cash and deposits at the end of the reporting period

....)

....)

....)

....)

....)