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 State Grants Commission, the Tasmanian Liquor and Gaming Commission, Commissioner for Licensing and the Superannuation Commission to carry out their independent statutory, regulatory and integrity functions.
This chapter provides the Department's financial information for 2017‑18 and over the Forward Estimates period (2018‑19 to 2020‑21). Further information on the Department is provided at www.treasury.tas.gov.au.
Table 11.1 provides a summary of the Budget and Forward Estimate for key deliverables.
Table 11.1: Key Deliverables Statement
|
|
2017‑18
Budget |
2018‑19 Forward Estimate |
2019‑20 Forward Estimate |
2020‑21 Forward Estimate |
|
|
$'000 |
$'000 |
$'000 |
$'000 |
|
|
|
|
|
|
|
Accelerated Local Government Capital Program1 |
1 250 |
2 000 |
2 000 |
2 000 |
|
Budget Information Management System Project |
2 900 |
1 500 |
…. |
.... |
|
City Deal Launceston1 |
1 325 |
2 042 |
1 767 |
1 766 |
|
Commonwealth Grants Commission 2020 Methodology Review |
217 |
467 |
217 |
…. |
|
Digital Transformation Priority Expenditure Program1 |
10 000 |
10 000 |
15 000 |
15 000 |
|
First Home Builder Assistance1 |
6 840 |
3 600 |
…. |
…. |
|
Launceston Government Office Accommodation1 |
3 625 |
3 625 |
…. |
…. |
|
Office of the Superannuation Commission |
17 388 |
16 677 |
16 755 |
16 854 |
|
Payroll Tax Rebate (Trainees, Apprentices and Youth)1 |
2 825 |
6 761 |
5 655 |
1 823 |
|
TasWater - Payment to Councils1 |
…. |
20 000 |
20 000 |
20 000 |
|
Water and Sewerage Industry Reform Support |
600 |
300 |
…. |
…. |
|
|
|
|
|
|
Note:
1. These Key Deliverables will be funded by Finance-General.
The Government has allocated an additional $7.3 million in loan funding to support up to an additional $60 million in loans to extend the Northern Economic Stimulus Interest Free Borrowing Program for Local Government. This funding will be able to be accessed by all councils.
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 the new financial management framework and reduces technology risks inherent in current legacy systems. Annual Budget Papers, Revised Estimate Reports and financial advice to the Treasurer will be supported by enhanced information management provided by the new system.
Following on from a successful procurement, design and product validation phase during 2016, the project team and its selected product partner commenced implementation of the solution in early 2017. A fully configured product is expected in the third quarter of 2017 for system testing, followed by a period of internal and external testing and concluding with a production release scheduled for early 2018.
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 made significant progress on the second stage of centralised property management to consolidate major office accommodation leases in Launceston. Treasury is working with agencies to ensure that all leases in Launceston 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.
The Government recently announced the City Deal Launceston which will deliver jobs and economic growth in Northern Tasmania. The centrepiece of the deal is the new University of Tasmania at Inveresk, which is the largest single infrastructure investment in Launceston's history. The City Deal also delivers the Launceston City Heart Project, which aims to revitalise the Launceston CBD by improving public spaces, transport and signage and helping to attract more people to live in the City. Also, as part of the City Deal, a new Tamar Estuary Management Taskforce will oversee the development of a River Health Action Plan, to determine the preferred solution and funding options for upgrading Launceston's combined sewerage and stormwater system.
A Regional Economic Development Strategy will be developed with the aim of identifying the next wave of economic opportunities for the North to compliment the City Heart Project and the Inveresk University Campus development.
The Goods and Services Tax is distributed to the States on the basis of Horizontal Fiscal Equalisation, which is administered by the Commonwealth Grants Commission.
Approximately every five years, the CGC conducts a comprehensive review of its methodology. Changes in the CGC's methodology has the potential to reallocate millions of dollars of GST between jurisdictions. The opportunity to actively participate in the review is critically important for the State, with GST being the largest single revenue source for Tasmania providing 41 per cent of Tasmania's revenue in 2016-17. The 2020 Methodology Review is expected to be wide ranging and resource intensive. In order to minimise the risks to Tasmania from any changes to the distribution methodology, a dedicated project team will be established in Treasury to respond to the 2020 Methodology Review.
The project team will also prepare the State's submission to the recently announced Productivity Commission inquiry into Australia's System of Horizontal Fiscal Equalisation, which underpins the distribution of GST revenue to the States and Territories.
In the 2017-18 Budget, the Government has allocated over $60 million to Digital Transformation Priority Expenditure. Over $13.5 million has been allocated to fund the replacement of the core legacy operating system utilised by the Tasmania Police (Project Unify, total funding of $13.1 million) with remaining funding allocated to commence detailed design work for Justice Connect (to replace legacy criminal information management systems) and the Child and Youth Services (CYS) Client Information System (see chapter 6 of The Budget Budget Paper No 1). Funding of $50 million has been made available over the Budget and Forward Estimates to fund implementation of the following projects once initial design work and costings are confirmed through the Structured Infrastructure Investment Review Process (which is managed by Treasury):
· Justice Connect ($16.6 million over five years, commencing in 2018-19);
· CYS Client Information System ($6 million);
· Health ICT Priority Infrastructure Program ($18 million); and
· Public Account Reporting and Cash Management System ($5 million).
These allocations represent current estimates. The estimated cost of projects and the timing of project expenditure will be finalised during the detailed planning stage of each project.
Treasury will progress detailed design work for the replacement of the Public Account Reporting and Cash Management Systems in 2017-18 with costings to be confirmed through the Structured Infrastructure Investment Review Process.
From 1 July 2017 until 30 June 2018, the Government has extended the First Home Owner Grant of $20 000. This Grant applies to the construction of new homes and is expected to support ongoing demand for newly constructed homes by first home buyers.
In 2017-18, Treasury, in conjunction with the Tasmanian Public Finance Corporation, will commence a review of cash management and investment practices of State entities. As part of this review, consideration will be given to alternative models of managing the financial assets and liabilities of individual entities to ensure whole of state funding and risk objectives are met.
In 2017-18, Treasury will undertake a review of options to promote additional affordable housing supply. A key component of the review will be the identification of underutilised government land and property held by Government Departments and Government Businesses with a view to identifying properties suitable for renewal and repurposing to increase affordable housing supply.
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 electronic gaming machines, Keno and casino table games in Tasmania. A Joint Select Committee of both Houses of Parliament is in the process of undertaking a full and public review of possible options and will 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 the benefits and costs of different market structures. The Tasmanian Liquor and Gaming Commission, and senior officers of the Department, have appeared before the Joint Select Committee and provided advice and options to its members for their consideration.
As part of the Government's centralised property management strategy, funding has been allocated over two years, from 2017-18, to Finance-General for the implementation of the second stage of the Government's strategy to improve the management and efficiency of government leased accommodation. This strategy will include the establishment of new contemporary government office space to be leased at the CH Smith site in Launceston. This infrastructure investment will assist with the revitalisation of the CH Smith site, together with priority works as required in the Launceston leased office portfolio, providing an important economic stimulus to the northern economy.
During 2016-17, Treasury continued to implement reforms of public sector superannuation in Tasmania. Key achievements during 2016-17 included:
· the nomination of Tasplan as the initial default superannuation fund;
· the successor fund transfer of all Retirement Benefits Fund (RBF) accumulation scheme members to Tasplan on 31 March 2017;
· the preparation of replacement regulations, consequential legislative amendments and amendments to Trust Deeds to support the reforms;
· the establishment of the Superannuation Commission from 1 April 2017 to replace the RBF Board and be responsible for the operations of the defined benefit schemes;
· establishing a branch within Treasury, the Office of the Superannuation Commission, to support the Superannuation Commission; and
· undertaking an open tender process to secure providers for member administration and investment management services for the defined benefit schemes.
The focus for 2017-18 will include:
· the Office of the Superannuation Commission supporting the Superannuation Commission during its first full year of operation;
· continuing the integration of the Office of the Superannuation Commission within Treasury; and
· successfully managing the transition to the new outsourced provider of member administration services for the defined benefit schemes.
Additional details regarding the funding of the Office of the Superannuation Commission is provided in chapter 7 of The Budget Budget Paper No 1 and in chapter 3 of this Budget Paper.
The parliament square redevelopment is well advanced with the building envelope complete and internal fitout works nearing completion. The fitout works for the Salamanca Building, integrated with the building construction process, are scheduled for completion in the third quarter of 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 and will incorporate a Marriott five-star Luxury Collection boutique hotel, the first in Australia. When complete, parliament square will include a new office building (Salamanca Building), the boutique hotel and specialty retail, food and beverage offerings surrounding parliament square. The entire redevelopment is scheduled for completion in late 2018.
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. Further information on the project is provided at www.treasury.tas.gov.au/parliamentsquare.
The Government will introduce a targeted payroll tax rebate to employers of eligible trainees, apprentices and youth from 1 July 2017. A rebate will be available for a period of up to two years for employers that employ new trainees and apprentices from 1 July 2017 to 30 June 2019. A rebate will also be available for a period of up to one year for employers that employ new youth employees (aged between 15 and 24 inclusive) from 1 July 2017 to 30 June 2019. The rebate will be equivalent to the payroll tax paid on eligible new employees.
An additional revenue officer within the State Revenue Office will be appointed to assist with the administration of this new payroll tax rebate.
During 2017-18, Treasury will assist the Government with its plans to transfer responsibility for TasWater from local councils to the State Government.
The focus for 2017-18 will include:
· preparing the legislation for the Spring Session of 2017 to establish a new Government Business Enterprise with responsibility for delivering water and sewerage services in Tasmania, to commence operations on or before 1 July 2018; and to also include payments to councils, from the Consolidated Fund, of $20 million per annum for seven years for the period between 1 July 2018 and 30 June 2025; and
· preparing
the legislation to amend the economic regulatory framework to give the
Government direct control of water and sewerage pricing and assistance with
transitional matters.
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, Superannuation 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
|
|
2016-17)
Budget) |
2017-18)
Budget) |
2018-19) Forward) Estimate) |
2019-20) Forward) Estimate) |
2020-21) Forward) Estimate) |
|
|
$'000) |
$'000) |
$'000) |
$'000) |
$'000) |
|
|
|
|
|
|
|
|
Treasurer |
|
|
|
|
|
|
|
|
|
|
|
|
|
Output Group 1 - Financial and Resource Management Services |
|
|
|
|
|
|
1.1 Budget Development and Management |
2 440) |
2 561) |
2 684) |
2 751) |
2 809) |
|
1.2 Financial Management and Accounting Services |
3 212) |
3 377) |
3 537) |
3 614) |
3 662) |
|
1.3 Shareholder Advice on Government Businesses |
2 292) |
2 421) |
2 534) |
2 585) |
2 631) |
|
1.4 Government Property and Accommodation Services |
1 256) |
1 356) |
1 290) |
1 037) |
1 107) |
|
1.5 Government Procurement Services |
2 443) |
2 458) |
2 505) |
2 562) |
2 605) |
|
|
11 643) |
12 173) |
12 550) |
12 549) |
12 814) |
|
Output Group 2 - Economic and Fiscal Policy Advice |
|
|
|
|
|
|
2.1 Economic Policy Advice1 |
1 315) |
1 940) |
1 702) |
1 437) |
1 462) |
|
2.2 Regulatory Policy |
2 493) |
2 505) |
2 627) |
2 689) |
2 732) |
|
2.3 Intergovernmental Financial Matters2 |
1 118) |
1 328) |
1 629) |
1 405) |
1 207) |
|
|
4 926) |
5 773) |
5 958) |
5 531) |
5 401) |
|
Output Group 3 - Revenue, Superannuation and Regulatory Management Services |
|
|
|
|
|
|
3.1 Tax Administration and Revenue Collection |
9 032) |
9 227) |
9 701) |
9 938) |
10 107) |
|
3.2 Regulation and Administration of Liquor and Gaming |
6 323) |
6 423) |
6 697) |
6 831) |
6 936) |
|
3.3 Economic Regulation3 |
1 825) |
2 041) |
1 800) |
1 844) |
2 149) |
|
3.4 Office of the Superannuation Commission4 |
....) |
17 338) |
16 677) |
16 755) |
16 854) |
|
|
17 180) |
35 029) |
34 875) |
35 368) |
36 046) |
|
Output Group 4 - Community Assistance |
|
|
|
|
|
|
4.1 Bass Strait Islands Community Service Obligation |
9 900) |
10 049) |
10 275) |
10 506) |
10 743) |
|
4.2 Public Trustee Community Service Obligation |
1 978) |
2 023) |
2 068) |
2 115) |
2 162) |
|
4.3 Community Support Levy |
4 480) |
4 375) |
4 353) |
4 335) |
4 314) |
|
|
16 358) |
16 447) |
16 696) |
16 956) |
17 219) |
|
|
|
|
|
|
|
|
TOTAL |
50 107) |
69 422) |
70 079) |
70 404) |
71 480) |
|
|
|
|
|
|
|
Notes:
1. The increase in Economic Policy Advice (Output 2.1) in 2017-18 and 2018-19 is due to additional resourcing to assist with the transfer of responsibility for TasWater to the State Government.
2. The increase in Intergovernmental Financial Matters (Output 2.3) in 2017-18 to 2019-20 is due to the establishment of a dedicated project team for the Commonwealth Grants Commission Methodology Review.
3. The fluctuations in expenditure on Economic Regulation (Output 3.3) reflect the work program of the Tasmanian Economic Regulator. Water and sewerage investigations are currently scheduled for 2017-18 and 2020‑21.
4. The Office of the Superannuation Commission Output (Output 3.4) reflects the establishment of the Superannuation Commission to be responsible for the operations of the defined benefit schemes. Additional detail regarding defined benefit scheme operating expenses is provided in chapter 7 of The Budget Budget Paper No 1 and in chapter 3 of this Budget Paper.
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.
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.
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.
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.
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
|
Unit of Measure |
2014‑15 Actual |
2015‑16 Actual |
2016‑17 Target |
2017‑18 Target |
|
|
|
|
|
|
|
|
|
Stakeholder satisfaction rating (expressed as a percentage)1 |
% |
79 |
na |
>90 |
na |
|
Proportion of financial reports receiving an unqualified audit opinion2 |
% |
100 |
100 |
100 |
100 |
|
Treasury‑managed property vacancy rate3 |
% |
5.2 |
5.5 |
<1.5 |
<1.5 |
|
State Service workers' compensation contributions as a percentage of the average premium charged by private insurers4 |
% |
90 |
84 |
<80 |
<80 |
|
Proportion of financial reports published by the required date5 |
% |
100 |
100 |
100 |
100 |
|
Variance between Budget estimate and actual GBE/SOC returns6 |
% |
5.7 |
2.5 |
<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 is undertaken every two years and was last conducted in November 2015. 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 currrently vacant and available for occupation. The increase in actual vacancy rate is primarily due to the ceasing of the 12 Murray Street building as Government office accommodation because of the parliament square development. It is expected that the vacancy rate will improve in 2016-17 due to returning office space at 12 Murray Street back to the landlord. Further improvements are expected in 2017-18 with potential new tenants for the Stoney Rise and St John Street buildings.
4. This measure is calculated by comparing average agency workers' compensation contributions, as a proportion of salaries, with the average premium rate of private insurers. Accordingly, it can be subject to significant fluctuation from year to year. There was a significant improvement in performance against this measure from 2014-15 to 2015‑16, however, performance did not meet the established target of 80 per cent.
5. The whole-of-government financial reports published in 2015-16 were the Preliminary Outcomes Report 2014‑15, Treasurer's Annual Financial Report 2014‑15, September Quarterly Report 2015‑16, December Quarterly Report 2015‑16 and the March Quarterly Report 2015‑16.
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 2014-15 and 2015‑16 relates to variations in the performance of the businesses, largely due to external influences impacting on profitability. The information published in Treasury's 2015-16 Annual Report was based on the preliminary outcomes and has been revised to reflect the final audited outcome.
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.
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.
This Output relates to the 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 |
2014‑15 Actual |
2015‑16 Actual |
2016‑17 Target |
2017‑18 Target |
|
|
|
|
|
|
|
|
Stakeholder satisfaction rating (expressed as a percentage)1 |
% |
86 |
na |
>90 |
na |
|
Variance between Budget estimate and actual taxation receipts2 |
% |
2.6 |
4.0 |
<5.0 |
<5.0 |
|
Variance between Budget estimate and actual Australian Government payments3 |
% |
3.5 |
1.6 |
<5.0 |
<5.0 |
|
Variance between Budget forecast and ABS estimate of Gross State Product growth4 |
% pts |
0.1 |
1.2 |
<1.0 |
<1.0 |
|
Variance between Budget forecast and ABS estimate of employment growth4 |
% pts |
1.3 |
0.8 |
<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 is undertaken every two years and was last conducted in November 2015. 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 2015-16 Annual Report was based on the preliminary outcomes and has been revised to reflect the final audited outcome.
3. The accuracy of the Department's Australian Government payments is 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 and 2015-16 Annual Reports were based on preliminary outcomes and have been revised to reflect the final audited outcome.
4. The accuracy of the Department's Gross State Product and employment growth forecasts is determined by comparing the forecasts for the Budget year in that year's Budget Papers with the most recent estimates of growth for that year published by the Australian Bureau of Statistics. The ABS has revised its estimates of employment growth for both 2014-15 and 2015-16 and of Gross State Product growth for 2014-15 since Treasury's 2015-16 Annual Report was published. The variance between the Department's forecast of Gross State Product for 2015-16 in the 2015‑16 Budget and the most recent estimate by the ABS is due to Treasury's forecast being significantly above the ABS estimate for that year. This variance will be revised if the ABS changes its estimate for Gross State Product growth for 2015‑16.
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.
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 the Commissioner's statutory functions under the Liquor Licensing Act 1990.
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.
This Output comprises provision of support to the Superannuation Commission in undertaking statutory functions under the Public Sector Superannuation Reform Act 2016; the Public Sector Superannuation Reform Regulations 2017; and the Public Sector Superannuation Reform (Parliamentary Superannuation) Regulations 2016. Under the public sector reforms, the operating costs of administering the five public sector defined benefit schemes are now funded directly by appropriation to Treasury, rather than through operating expenses being charged directly against scheme assets. Additional details regarding the Scheme's operating expenses is provided in chapter 7 of The Budget Budget Paper No 1 and in chapter 3 of this Budget Paper.
Table 11.5: Performance Information ‑ Output Group 3
|
Unit of Measure |
2014‑15 Actual |
2015‑16 Actual |
2016‑17 Target |
2017‑18 Target |
|
|
|
|
|
|
|
|
|
Stakeholder satisfaction rating (expressed as a percentage)1 |
% |
81 |
na |
>90 |
na |
|
Total overdue taxation debt as a percentage of total taxation revenue2 |
% |
1.4 |
1.4 |
<0.8 |
<0.8 |
|
Percentage of formal recommendations accepted by the Tasmanian Liquor and Gaming Commission3 |
% |
93 |
98 |
>80 |
>80 |
|
Percentage of objections in which the Commissioner of State Revenue's assessment or decision was confirmed4 |
% |
78 |
63 |
>80 |
>80 |
|
Revenue Branch operating expenses as a percentage of taxation revenue5 |
% |
1.0 |
0.9 |
<1.5 |
<1.5 |
|
Percentage of liquor applications submitted to the Commissioner for Licensing within 40 days of receipt6 |
% |
95 |
100 |
>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 is undertaken every two years and was last conducted in November 2015. The next stakeholder survey is scheduled for November 2017.
2. The State Revenue Office 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. The proportions of debt in recent years have been influenced by better identification of overdue debt through systems improvements and a more streamlined and consistent process for moving unpaid amounts through to 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. The lower level of assessments or decisions of the Commissioner of State Revenue that have been confirmed on objection in 2015-16 is a result of a significant decrease in the number of objections that have been treated as valid. That is, only objections with valid grounds have been dealt with via the objection process. Invalid objections have their own alternative process and have been excluded from this result.
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 Liquor and Gaming Branch assists the Commissioner for Licensing by receiving applications for licences, undertaking investigations and providing recommendations to the Commissioner, as to whether a licence applicant is qualified in accordance with the requirements of the Liquor Licensing Act.
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 Islands.
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.
This Output comprises the collection and disbursement of funds from the Community Support Levy.
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) |
2017-18)
Budget) |
2018-19) Forward) Estimate) |
2019-20) Forward) Estimate) |
2020-21) Forward) Estimate) |
|
|
$'000) |
$'000) |
$'000) |
$'000) |
$'000) |
|
|
|
|
|
|
|
|
Treasurer |
|
|
|
|
|
|
Budget Information Management System Project1 |
7 517) |
2 900) |
1 500) |
….) |
….) |
|
State Revenue System Replacement - Payroll Tax and Duties2 |
2 815) |
235) |
….) |
….) |
….) |
|
|
|
|
|
|
|
|
|
3 135) |
1 500) |
….) |
….) |
|
|
|
|
|
|
|
|
Notes:
1. The estimated cash flows for the Budget Information Management System Project have been reviewed since the 2016‑17 Budget to reflect the proposed work program. The total estimated Project cost remains at $7.5 million.
2. In addition to the $2.1 million Capital Investment Program funding for the State Revenue System Replacement (Payroll Tax and Duties) Project, Treasury received funding of $700 000 from the Australian Government for Third Party Reporting, with the remaining $235 000 of this additional funding to be spent in 2017-18.
Table 11.7: Statement of Comprehensive Income
|
|
2016-17)
Budget) |
2017-18)
Budget) |
2018-19) Forward) Estimate) |
2019-20) Forward) Estimate) |
2020-21) Forward) Estimate) |
|
|
$'000) |
$'000) |
$'000) |
$'000) |
$'000) |
|
|
|
|
|
|
|
|
Revenue and other income from transactions |
|
|
|
|
|
|
Appropriation revenue - recurrent1 |
39 657) |
58 748) |
58 882) |
59 050) |
59 912) |
|
Appropriation revenue - works & services2 |
3 218) |
2 900) |
1 500) |
....) |
....) |
|
Grants3 |
....) |
235) |
....) |
....) |
....) |
|
Fees and fines |
8 325) |
8 889) |
8 716) |
8 639) |
8 932) |
|
Other revenue |
1 340) |
1 420) |
1 313) |
1 034) |
1 043) |
|
Total revenue and other income from transactions |
52 540) |
72 192) |
70 411) |
68 723) |
69 887) |
|
|
|
|
|
|
|
|
Expenses from transactions |
|
|
|
|
|
|
Employee benefits1 |
27 118) |
32 734) |
33 346) |
33 577) |
34 151) |
|
Depreciation and amortisation4 |
247) |
1 170) |
1 745) |
1 853) |
1 821) |
|
Supplies and consumables1 |
6 562) |
11 889) |
11 106) |
10 833) |
11 102) |
|
Grants and subsidies |
16 060) |
16 132) |
16 382) |
16 640) |
16 903) |
|
Other expenses1 |
120) |
7 497) |
7 500) |
7 501) |
7 503) |
|
Total expenses from transactions |
50 107) |
69 422) |
70 079) |
70 404) |
71 480) |
|
|
|
|
|
|
|
|
Net result from transactions (net operating balance) |
2 433) |
2 770) |
332) |
(1 681) |
(1 593) |
|
|
|
|
|
|
|
|
Net result |
2 433) |
2 770) |
332) |
(1 681) |
(1 593) |
|
|
|
|
|
|
|
|
2 433) |
2 770) |
332) |
(1 681) |
(1 593) |
|
|
|
|
|
|
|
|
Notes:
1. The increase in Appropriation revenue - recurrent, Employee benefits, Supplies and consumables and Other expenses from 2017-18 primarily reflects the establishment of the Office of the Superannuation Commission.
2. The decrease in Appropriation revenue - works & services from 2017-18 reflects the timing of Capital Investment Program funding.
3. The increase in Grants in 2017‑18 reflects Australian Government funding for Third Party Reporting of the State Revenue System Replacement - Payroll Tax and Duties.
4. The increase in Depreciation and amortisation from 2017-18 reflects amortisation following completion of phase three of the State Revenue System Replacement - Payroll Tax and Duties in 2016-17 and the Budget Information Management System Project in 2017-18.
Table 11.8: Statement of Comprehensive Income ‑ Administered
|
|
2016-17)
Budget) |
2017-18)
Budget) |
2018-19) Forward) Estimate) |
2019-20) Forward) Estimate) |
2020-21) Forward) Estimate) |
|
|
$'000) |
$'000) |
$'000) |
$'000) |
$'000) |
|
|
|
|
|
|
|
|
Revenue and other income from transactions |
|
|
|
|
|
|
Fees and fines |
1 428) |
1 469) |
1 488) |
1 507) |
1 526) |
|
Total revenue and other income from transactions |
1 428) |
1 469) |
1 488) |
1 507) |
1 526) |
|
|
|
|
|
|
|
|
Expenses from transactions |
|
|
|
|
|
|
Transfers to the Consolidated Fund |
1 428) |
1 469) |
1 488) |
1 507) |
1 526) |
|
Total expenses from transactions |
1 428) |
1 469) |
1 488) |
1 507) |
1 526) |
|
|
|
|
|
|
|
|
Net result from transactions (net operating balance) |
....) |
....) |
....) |
....) |
....) |
|
|
|
|
|
|
|
|
Net result |
....) |
....) |
....) |
....) |
....) |
|
|
|
|
|
|
|
|
....) |
....) |
....) |
....) |
....) |
|
|
|
|
|
|
|
|
Table 11.9: Revenue from Appropriation by Output
|
|
Budget) |
Budget) |
Forward) Estimate) |
Forward) Estimate) |
Forward) Estimate) |
|
|
$'000) |
$'000) |
$'000) |
$'000) |
$'000) |
|
|
|
|
|
|
|
|
Treasurer |
|
|
|
|
|
|
|
|
|
|
|
|
|
Output Group 1 - Financial and Resource Management Services |
|
|
|
|
|
|
1.1 Budget Development and Management |
2 408) |
2 494) |
2 541) |
2 580) |
2 647) |
|
1.2 Financial Management and Accounting Services |
3 073) |
3 186) |
3 243) |
3 281) |
3 343) |
|
1.3 Shareholder Advice on Government Businesses |
2 159) |
2 261) |
2 303) |
2 331) |
2 384) |
|
1.4 Government Property and Accommodation Services |
798) |
816) |
831) |
866) |
935) |
|
|
8 438) |
8 757) |
8 918) |
9 058) |
9 309) |
|
Output Group 2 - Economic and Fiscal Policy Advice |
|
|
|
|
|
|
2.1 Economic Policy Advice1 |
1 292) |
1 905) |
1 630) |
1 349) |
1 380) |
|
2.2 Regulatory Policy |
2 445) |
2 435) |
2 483) |
2 514) |
2 568) |
|
2.3 Intergovernmental Financial Matters2 |
1 095) |
1 298) |
1 566) |
1 329) |
1 135) |
|
|
4 832) |
5 638) |
5 679) |
5 192) |
5 083) |
|
Output Group 3 - Revenue, Superannuation and Regulatory Management Services |
|
|
|
|
|
|
3.1 Tax Administration and Revenue Collection |
8 782) |
8 984) |
9 214) |
9 337) |
9 546) |
|
3.2 Regulation and Administration of Liquor and Gaming |
5 701) |
5 921) |
6 015) |
6 077) |
6 197) |
|
3.4 Office of the Superannuation Commission |
....) |
17 376) |
16 713) |
16 765) |
16 872) |
|
|
14 483) |
32 281) |
31 942) |
32 179) |
32 615) |
|
Output Group 4 - Community Assistance |
|
|
|
|
|
|
4.1 Bass Strait Islands Community Service Obligation |
9 900) |
10 049) |
10 275) |
10 506) |
10 743) |
|
4.2 Public Trustee Community Service Obligation |
1 978) |
2 023) |
2 068) |
2 115) |
2 162) |
|
|
11 878) |
12 072) |
12 343) |
12 621) |
12 905) |
|
|
|
|
|
|
|
|
Capital Investment Program |
3 218) |
2 900) |
1 500) |
....) |
....) |
|
|
|
|
|
|
|
|
Department of Treasury and Finance |
|
|
|
|
|
|
Total Recurrent Services |
39 631) |
58 748) |
58 882) |
59 050) |
59 912) |
|
Total Works and Services |
3 218) |
2 900) |
1 500) |
....) |
....) |
|
|
42 849) |
61 648) |
60 382) |
59 050) |
59 912) |
|
|
|
|
|
|
|
Table 11.9: Revenue from Appropriation by Output (Continued)
Notes:
1. The increase in Economic Policy Advice (Output 2.1) in 2017-18 and 2018-19 primarily reflects additional resourcing to assist with the transfer of responsibility for TasWater to the State Government.
2. The increase in Intergovernmental Financial Matters (Output 2.3) in 2017-18 to 2019-20 primarily reflects the establishment of a dedicated project team for the Commonwealth Grants Commission Methodology Review.
3. The decrease is due to the relocation of the Betfair Group from Tasmania.
Table 11.10: Statement of Financial Position as at 30 June
|
|
2017)
Budget) |
2018)
Budget) |
2019) Forward) Estimate) |
2020) Forward) Estimate) |
2021) Forward) Estimate) |
|
|
$'000) |
$'000) |
$'000) |
$'000) |
$'000) |
|
|
|
|
|
|
|
|
Assets |
|
|
|
|
|
|
Financial assets |
|
|
|
|
|
|
Cash and deposits |
3 848) |
4 638) |
4 728) |
4 672) |
4 565) |
|
Receivables |
308) |
281) |
285) |
290) |
295) |
|
Other financial assets |
427) |
478) |
483) |
488) |
493) |
|
|
4 583) |
5 397) |
5 496) |
5 450) |
5 353) |
|
Non-financial assets |
|
|
|
|
|
|
Property, plant and equipment |
929) |
804) |
725) |
669) |
625) |
|
Heritage and cultural assets |
84) |
84) |
84) |
84) |
84) |
|
Intangibles1 |
7 048) |
9 438) |
9 983) |
8 897) |
7 831) |
|
Other assets |
445) |
424) |
426) |
428) |
430) |
|
|
8 506) |
10 750) |
11 218) |
10 078) |
8 970) |
|
|
|
|
|
|
|
|
Total assets |
13 089) |
16 147) |
16 714) |
15 528) |
14 323) |
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
Payables2 |
1 758) |
208) |
210) |
212) |
214) |
|
Employee benefits |
7 259) |
7 663) |
7 895) |
8 387) |
8 771) |
|
Other liabilities |
166) |
34) |
35) |
36) |
38) |
|
Total liabilities |
9 183) |
7 905) |
8 140) |
8 635) |
9 023) |
|
|
|
|
|
|
|
|
Net assets (liabilities) |
3 906) |
8 242) |
8 574) |
6 893) |
5 300) |
|
|
|
|
|
|
|
|
Equity |
|
|
|
|
|
|
Accumulated funds |
3 906) |
8 242) |
8 574) |
6 893) |
5 300) |
|
Total equity |
3 906) |
8 242) |
8 574) |
6 893) |
5 300) |
|
|
|
|
|
|
|
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 decrease in Payables from 2018 reflects the change in the timing of the payment of Bass Strait Islands Community Service Obligations under a new agreement with Hydro Tasmania, whereby amounts are now fixed and paid to Hydro Tasmania before 30 June in each year.
Table 11.11: Statement of Cash Flows
|
|
2016-17)
Budget) |
2017-18)
Budget) |
2018-19) Forward) Estimate) |
2019-20) Forward) Estimate) |
2020-21) Forward) Estimate) |
|
|
$'000) |
$'000) |
$'000) |
$'000) |
$'000) |
|
|
|
|
|
|
|
|
Cash flows from operating activities |
|
|
|
|
|
|
Cash inflows |
|
|
|
|
|
|
Appropriation receipts - recurrent1 |
39 657) |
58 748) |
58 882) |
59 050) |
59 912) |
|
Appropriation receipts - capital2 |
3 218) |
2 900) |
1 500) |
....) |
....) |
|
Grants3 |
....) |
235) |
....) |
....) |
....) |
|
Fees and fines |
8 316) |
8 880) |
8 707) |
8 630) |
8 922) |
|
GST receipts |
1 600) |
1 600) |
1 600) |
1 600) |
1 600) |
|
Other cash receipts |
1 340) |
1 420) |
1 313) |
1 034) |
1 043) |
|
Total cash inflows |
54 131) |
73 783) |
72 002) |
70 314) |
71 477) |
|
|
|
|
|
|
|
|
Cash outflows |
|
|
|
|
|
|
Employee benefits1 |
(23 756) |
(28 692) |
(29 215) |
(29 153) |
(29 753) |
|
Superannuation1 |
(3 031) |
(3 821) |
(3 898) |
(3 932) |
(4 012) |
|
GST payments |
(1 600) |
(1 600) |
(1 600) |
(1 600) |
(1 600) |
|
Grants and subsidies |
(16 060) |
(16 132) |
(16 382) |
(16 640) |
(16 903) |
|
Supplies and consumables1 |
(6 561) |
(11 891) |
(11 108) |
(10 835) |
(11 104) |
|
Other cash payments1 |
(120) |
(7 497) |
(7 500) |
(7 501) |
(7 503) |
|
Total cash outflows |
(51 128) |
(69 633) |
(69 703) |
(69 661) |
(70 875) |
|
|
|
|
|
|
|
|
Net cash from (used by) operating activities |
3 003) |
4 150) |
2 299) |
653) |
602) |
|
|
|
|
|
|
|
|
Cash flows from investing activities |
|
|
|
|
|
|
Payments for acquisition of non-financial assets |
(3 319) |
(3 844) |
(2 209) |
(709) |
(709) |
|
Net cash from (used by) investing activities |
(3 319) |
(3 844) |
(2 209) |
(709) |
(709) |
|
|
|
|
|
|
|
|
Net increase (decrease) in cash and cash equivalents held |
(316) |
306) |
90) |
(56) |
(107) |
|
|
|
|
|
|
|
|
Cash and deposits at the beginning of the reporting period |
4 164) |
4 332) |
4 638) |
4 728) |
4 672) |
|
Cash and deposits at the end of the reporting period |
3 848) |
4 638) |
4 728) |
4 672) |
4 565) |
|
|
|
|
|
|
|
Notes:
1. The increase in Appropriation receipts - recurrent, Employee benefits, Superannuation, Supplies and consumables and Other cash payments from 2017-18 primarily reflects the establishment of the Office of the Superannuation Commission.
2. The decrease in Appropriation receipts - capital from 2017-18 reflects the timing of Capital Investment Program funding.
3. The increase in Grants in 2017‑18 reflects Australian Government funding for Third Party Reporting of the State Revenue System Replacement (Payroll Tax and Duties) Project.
Table 11.12: Statement of Cash Flows - Administered
|
|
2016-17)
Budget) |
2017-18)
Budget) |
2018-19) Forward) Estimate) |
2019-20) Forward) Estimate) |
2020-21) Forward) Estimate) |
|
|
$'000) |
$'000) |
$'000) |
$'000) |
$'000) |
|
|
|
|
|
|
|
|
Cash flows from operating activities |
|
|
|
|
|
|
Cash inflows |
|
|
|
|
|
|
Fees and fines |
1 428) |
1 469) |
1 488) |
1 507) |
1 526) |
|
Total cash inflows |
1 428) |
1 469) |
1 488) |
1 507) |
1 526) |
|
|
|
|
|
|
|
|
Cash outflows |
|
|
|
|
|
|
Transfers to the Consolidated Fund |
(1 428) |
(1 469) |
(1 488) |
(1 507) |
(1 526) |
|
Total cash outflows |
(1 428) |
(1 469) |
(1 488) |
(1 507) |
(1 526) |
|
|
|
|
|
|
|
|
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 |
....) |
....) |
....) |
....) |
....) |
|
|
|
|
|
|
|