4     2018-19 Budget and Forward Estimates

Key Issues

·       The Net Operating Balance is in surplus throughout the 2018‑19 Budget and Forward Estimates period, with an estimated surplus of $161.9 million in 2018‑19.

·       The Fiscal Balance is estimated to be a deficit of $284.6 million for 2018‑19, with a projected improvement over the Forward Estimates period to achieve surpluses of $5.3 million in 2020‑21 and $52.9 million in 2021‑22.

·       Net Debt remains negative throughout the Forward Estimates period (i.e. Net Cash and Investments remains positive). As at 30 June 2019, Net Debt is estimated to be negative $329.6 million.

·       This chapter includes the Policy and Parameter Statement which provides a reconciliation of the major movements in the Net Operating Balance and the Fiscal Balance between the Budget and Forward Estimates presented in the 2017‑18 Budget Papers and those presented in these Budget Papers. Detailed information on 2018-19 Budget initiatives, including the implementation of the Government’s 2018 election commitments can be found in Government Services Budget Paper No 2.

 


Overview

This chapter includes the General Government Sector Financial Statements for the 2018‑19 Budget and Forward Estimates period and an Estimated Outcome for 2017-18. It also incorporates the Policy and Parameter Statement which reflects changes between the Budget and Forward Estimates reported in the 2017‑18 Budget Papers and the 2018‑19 Budget Papers.

The financial statements in this chapter have been prepared in accordance with the Uniform Presentation Framework. The statements present information for the 2017-18 Budget and for the 2018‑19 Budget and Forward Estimates. Taxation information, required under the UPF, is provided in chapter 5 of this Budget Paper.

In accordance with the UPF, the final end of year results for the General Government Sector will be available in the Treasurers Annual Financial Report 2017-18, which will be publicly released by no later than 31 October 2018.


Government Financial Estimates

Tables 4.1 to 4.3 detail the Income Statement, Balance Sheet and Cash Flow Statement for the General Government Sector.

Table 4.1:         General Government Income Statement

 

2017-18 

2017-18 

2018-19 

2019-20 

2020-21 

2021-22 

 

 

Estimated 

 

Forward 

Forward 

Forward 

 

Budget 

Outcome 

Budget 

Estimate 

Estimate 

Estimate 

 

$m 

$m 

$m 

$m 

$m 

$m 

 

 

 

 

 

 

 

Revenue from transactions1

 

 

 

 

 

 

Grants

3 682.9 

3 802.0 

3 893.9 

3 911.9 

4 009.4 

4 187.2 

Taxation

1 128.5 

1 161.1 

1 215.2 

1 247.8 

1 274.0 

1 301.2 

Sales of goods and services

408.0 

406.4 

417.6 

422.6 

429.3 

435.7 

Fines and regulatory fees

98.9 

99.0 

98.6 

99.7 

101.1 

101.7 

Interest income

19.6 

22.4 

17.8 

13.3 

12.1 

12.5 

Dividend, tax and rate equivalent income

358.4 

376.5 

409.7 

391.6 

369.9 

368.9 

Other revenue

177.7 

168.4 

164.6 

162.3 

157.3 

149.2 

 

5 874.0 

6 035.8 

6 217.3 

6 249.2 

6 353.1 

6 556.5 

 

 

 

 

 

 

 

Less Expenses from transactions

 

 

 

 

 

 

Employee expenses2

2 400.4 

2 513.8 

2 531.5 

2 588.7 

2 658.5 

2 735.6 

Superannuation3

273.5 

318.4 

294.1 

297.4 

299.0 

302.6 

Depreciation

268.6 

267.7 

264.1 

322.7 

337.8 

348.2 

Supplies and consumables4

1 227.8 

1 211.4 

1 232.7 

1 231.5 

1 264.4 

1 324.2 

Nominal superannuation interest expense

285.6 

254.9 

270.9 

273.7 

276.0 

277.6 

Borrowing costs

9.8 

9.7 

9.5 

9.1 

8.8 

8.3 

Grant and subsidy expenses5

1 314.3 

1 351.3 

1 393.1 

1 376.8 

1 322.5 

1 323.0 

Other expenses

39.7 

33.3 

59.5 

35.5 

38.0 

40.6 

 

5 819.8 

5 960.5 

6 055.4 

6 135.5 

6 204.8 

6 360.0 

 

 

 

 

 

 

 

Equals NET OPERATING BALANCE

54.3 

75.3 

161.9 

113.7 

148.3 

196.4 

 

 

 

 

 

 

 

Plus Other economic flows - included in

operating result

 

 

 

 

 

 

Gain/(loss) on disposal of non-financial

assets

15.3 

13.1 

12.2 

12.7 

13.5 

13.9 

Movement in investments in GBEs & SOCs6

(104.2)

10.9 

(93.7)

(35.6)

(6.5)

15.0 

Movements in superannuation liability3

.... 

1 186.5 

.... 

.... 

.... 

.... 

Other gains/(losses)

9.8 

27.2 

(4.2)

(5.4)

(5.1)

0.5 

 

(79.0)

1 237.7 

(85.7)

(28.3)

1.8 

29.4 

 

 

 

 

 

 

 

Equals Operating Result

(24.8)

1 312.9 

76.2 

85.4 

150.1 

225.9 

Table 4.1:         General Government Income Statement (continued)

 

2017-18 

2017-18 

2018-19 

2019-20 

2020-21 

2021-22 

 

 

Estimated 

 

Forward 

Forward 

Forward 

 

Budget 

Outcome 

Budget 

Estimate 

Estimate 

Estimate 

 

$m 

$m 

$m 

$m 

$m 

$m 

 

 

 

 

 

 

 

Plus Other economic flows - other

movements in equity

 

 

 

 

 

 

Revaluations of non-financial assets

250.8 

250.6 

268.4 

288.5 

294.9 

299.8 

Other non-owner movements in equity

3.8 

3.8 

3.8 

3.8 

3.8 

3.8 

 

254.6 

254.4 

272.2 

292.3 

298.7 

303.6 

 

 

 

 

 

 

 

Equals Comprehensive Result

229.8 

1 567.4 

348.4 

377.7 

448.8 

529.5 

 

 

 

 

 

 

 

KEY FISCAL AGGREGATES

 

 

 

 

 

 

 

 

 

 

 

 

 

NET OPERATING BALANCE

54.3 

75.3 

161.9 

113.7 

148.3 

196.4 

 

 

 

 

 

 

 

Less Net acquisition of non-financial assets

 

 

 

 

 

 

Purchases of non-financial assets7

609.9 

514.7 

741.0 

719.6 

532.4 

523.8 

Less Sale of non-financial assets

33.2 

30.9 

30.4 

30.8 

51.6 

32.0 

Less Depreciation

268.6 

267.7 

264.1 

322.7 

337.8 

348.2 

 

308.2 

216.0 

446.5 

366.1 

143.0 

143.6 

 

 

 

 

 

 

 

Equals FISCAL BALANCE

(253.9)

(140.7)

(284.6)

(252.4)

5.3 

52.9 

 

 

 

 

 

 

 

Notes:

1.    Detailed information on revenue estimates is provided in chapter 5 of this Budget Paper.

2.    The increase in Employee expenses in 2018‑19 primarily reflects the delivery of the Government’s 2018 election commitments and other 2018 Budget initiatives. Further information in relation to agency initiatives is contained in the relevant agency chapter in Government Services Budget Paper No 2.

3.    The movement in Superannuation reflects an actuarial assessment of the defined benefit schemes and agency expenditure estimates for accumulation scheme members. Further information on the Superannuation liability is provided in chapter 7 and appendix 3 of this Budget Paper.

4.    The increase in Supplies and consumables from 2018‑19 onwards primarily reflects the delivery of the Government’s 2018 election commitments and other 2018 Budget initiatives. Further information in relation to agency initiatives is contained in the relevant agency chapter in Government Services Budget Paper No 2.

5.    The increase in Grant and subsidy expenses in 2018-19 and 2019‑20 reflects increased Australian Government funding to non‑government schools under Quality Schools, Quality Outcomes; the expenditure profile for the Northern Cities Major Development Initiative; the implementation of the Bilateral Agreement for the Transition to the NDIS with the Australian Government; offset by revised timing of the receipt of Australian Government funding to local government councils.

6.    The movement in investments in GBEs & SOCs reflects changes in the net assets of the Public Non‑Financial Corporations and Public Financial Corporation sectors. Refer to appendix 1 for more information on the PNFC and PFC sectors.

7.    Additional information on agency 2018‑19 Budget Infrastructure Investment is provided in chapter 6 of this Budget Paper.

Table 4.2:         General Government Balance Sheet as at 30 June

 

2018 

2018 

2019 

2020 

2021 

2022 

 

 

Estimated 

 

Forward 

Forward 

Forward 

 

Budget 

Outcome 

Budget 

Estimate 

Estimate 

Estimate 

 

$m 

$m 

$m 

$m 

$m 

$m 

 

 

 

 

 

 

 

Assets

 

 

 

 

 

 

Financial assets

 

 

 

 

 

 

Cash and deposits1

1 117.2 

1 130.0 

938.7 

823.3 

844.8 

876.6 

Investments2

46.4 

71.7 

139.8 

187.5 

193.7 

193.9 

Equity investment in PNFC & PFC sectors3

5 654.0 

5 417.4 

5 398.3 

5 423.5 

5 464.7 

5 535.4 

Other equity investments

27.2 

23.8 

47.9 

71.9 

95.9 

118.8 

Receivables

315.4 

320.9 

316.9 

311.4 

306.4 

303.2 

Other financial assets

815.4 

796.6 

802.9 

826.0 

841.1 

858.8 

 

7 975.7 

7 760.5 

7 644.5 

7 643.6 

7 746.6 

7 886.5 

 

 

 

 

 

 

 

Non-financial assets

 

 

 

 

 

 

Land and buildings4

6 265.3 

6 270.9 

6 635.1 

6 988.5 

7 160.6 

7 311.5 

Infrastructure5

4 816.5 

4 916.2 

5 259.9 

5 552.8 

5 802.7 

6 086.8 

Plant and equipment

229.0 

244.0 

255.9 

268.3 

290.6 

305.4 

Heritage and cultural assets

484.0 

473.9 

486.0 

498.2 

510.4 

522.7 

Investment property

3.5 

3.7 

4.0 

4.2 

4.6 

4.9 

Intangibles

47.7 

57.5 

54.5 

49.8 

44.7 

41.1 

Assets held for sale

4.8 

10.1 

9.4 

9.3 

8.3 

7.2 

Other non-financial assets

37.4 

43.9 

43.6 

43.7 

40.1 

39.9 

 

11 888.1 

12 020.2 

12 748.4 

13 414.7 

13 861.9 

14 319.4 

 

 

 

 

 

 

 

Total assets

19 863.8 

19 780.7 

20 392.9 

21 058.4 

21 608.5 

22 206.0 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

Borrowings6

711.8 

579.3 

748.9 

987.5 

1 023.6 

1 018.9 

Superannuation7

6 266.3 

6 786.2 

6 868.1 

6 933.0 

6 981.9 

7 015.0 

Employee entitlements

618.8 

638.8 

648.3 

631.1 

643.8 

663.0 

Payables

133.7 

135.2 

135.8 

136.2 

138.7 

140.1 

Other liabilities

409.7 

396.3 

398.4 

399.5 

400.7 

419.7 

Total liabilities

8 140.3 

8 535.8 

8 799.6 

9 087.3 

9 188.6 

9 256.6 

 

 

 

 

 

 

 

Net assets

11 723.5 

11 244.9 

11 593.3 

11 971.0 

12 419.8 

12 949.3 

 

 

 

 

 

 

 


 

Table 4.2:         General Government Balance Sheet as at 30 June (continued)

 

2018 

2018 

2019 

2020 

2021 

2022 

 

 

Estimated 

 

Forward 

Forward 

Forward 

 

Budget 

Outcome 

Budget 

Estimate 

Estimate 

Estimate 

 

$m 

$m 

$m 

$m 

$m 

$m 

 

 

 

 

 

 

 

Equity

 

 

 

 

 

 

Accumulated funds

6 761.4 

6 018.7 

6 098.7 

6 187.9 

6 341.8 

6 571.5 

Asset revaluation reserve

4 962.1 

5 226.2 

5 494.6 

5 783.1 

6 078.0 

6 377.8 

Total equity

11 723.5 

11 244.9 

11 593.3 

11 971.0 

12 419.8 

12 949.3 

 

 

 

 

 

 

 

NET WORTH8

11 723.5 

11 244.9 

11 593.3 

11 971.0 

12 419.8 

12 949.3 

 

 

 

 

 

 

 

NET FINANCIAL WORTH9

(164.6)

(775.3)

(1 155.1)

(1 443.7)

(1 442.0)

(1 370.1)

 

 

 

 

 

 

 

NET FINANCIAL LIABILITIES10

5 818.6 

6 192.7 

6 553.4 

6 867.2 

6 906.8 

6 905.5 

 

 

 

 

 

 

 

NET DEBT11

(451.8)

(622.4)

(329.6)

(23.3)

(14.8)

(51.6)

 

 

 

 

 

 

 

Notes:

1.    The decrease in Cash and deposits in 2019 primarily reflects the Government’s significant infrastructure investment program and the anticipated expenditure of Australian Government Funding.

2.    The increase in Investments primarily reflects the current estimate of loan advances provided by the Department of State Growth, together with funds invested with the Tasmanian Public Finance Corporation for the TT-Line Vessel Replacement Fund.

3.    The decrease in Equity investments in PNFC & PFC sectors primarily reflects a decrease in the net assets of the PNFC sector, as a result of a decrease for electricity entities of $374 million due to the impact of final 2017 balances that were not known at the time of the 2017‑18 Budget. This is partly offset by an increase for TT‑Line Company Pty Ltd of $79.9 million, reflecting the return of funds held in the TT-Line Vessel Replacement Fund.

4.    The increase in Land and buildings reflects the implementation of the Government’s significant infrastructure investment program with increased capital expenditure on schools, housing and hospital assets undertaken by the Department of Education, Department of Communities Tasmania and Department of Health.

5.    The increase in Infrastructure reflects the implementation of the Government’s significant infrastructure investment program.

6.    Borrowings of $748.9 million as at 30 June 2019 includes an estimated end of year borrowing of $507.5 million to be undertaken on 28 June 2019. The end of year borrowing has no impact on the Government’s Net Debt as the same amount will be borrowed and invested on 28 June 2019 until 1 July 2019 with the Tasmanian Public Finance Corporation, grossing‑up the amount of cash held and borrowings.

7.    The increase in Superannuation as at 30 June 2019 reflects the latest actuarial assessment of the liability related to the defined benefit schemes. Further information on the Superannuation liability is provided in chapter 7 and appendix 3 of this Budget Paper.

8.    Net Worth represents Total assets less Total liabilities.

9.    Net Financial Worth represents Financial assets less Total liabilities.

10.  Net Financial Liabilities represents Total liabilities less Financial assets, excluding Equity investments in PNFC & PFC sectors.

11.  Net Debt represents Borrowings less the sum of Cash and deposits and Investments.

 

 

 

 


 

Table 4.3:         General Government Cash Flow Statement

 

2017-18 

2017-18 

2018-19 

2019-20 

2020-21 

2021-22 

 

 

Estimated 

 

Forward 

Forward 

Forward 

 

Budget 

Outcome 

Budget 

Estimate 

Estimate 

Estimate 

 

$m 

$m 

$m 

$m 

$m 

$m 

 

 

 

 

 

 

 

Cash Flows from Operating Activities

 

 

 

 

 

 

Cash receipts from operating activities

 

 

 

 

 

 

Grants received

3 682.9 

3 802.0 

3 893.9 

3 912.0 

4 009.4 

4 187.2 

Taxation

1 127.3 

1 159.0 

1 213.6 

1 245.4 

1 272.1 

1 298.9 

Sales of goods and services

408.0 

406.1 

417.0 

421.3 

428.9 

433.6 

Fines and regulatory fees

98.9 

99.0 

98.6 

99.7 

101.1 

101.7 

Interest received

19.6 

22.3 

17.8 

13.3 

12.1 

12.5 

Dividend, tax and rate equivalents

372.4 

409.3 

412.0 

375.3 

361.2 

362.5 

Other receipts

365.3 

355.7 

355.2 

335.9 

326.2 

318.2 

 

6 074.3 

6 253.4 

6 407.9 

6 403.0 

6 510.9 

6 714.5 

 

 

 

 

 

 

 

Cash payments from operating

activities

 

 

 

 

 

 

Employee entitlements

(2 393.0)

(2 506.2)

(2 521.3)

(2 601.9)

(2 643.9)

(2 715.4)

Superannuation

(468.1)

(472.7)

(481.8)

(507.9)

(525.5)

(545.5)

Supplies and consumables

(1 239.9)

(1 225.9)

(1 244.5)

(1 243.5)

(1 271.3)

(1 317.4)

Borrowing costs

(9.8)

(9.8)

(9.5)

(9.3)

(8.8)

(8.3)

Grants and subsidies paid

(1 314.2)

(1 351.2)

(1 393.1)

(1 376.8)

(1 322.4)

(1 322.9)

Other payments

(229.1)

(222.6)

(252.1)

(208.9)

(208.1)

(211.0)

 

(5 654.1)

(5 788.5)

(5 902.3)

(5 948.3)

(5 980.0)

(6 120.5)

 

 

 

 

 

 

 

Net Cash Flows from Operating

Activities

420.3 

464.9 

505.6 

454.7 

531.0 

594.0 

 

 

 

 

 

 

 

Cash Flows from Investing Activities

 

 

 

 

 

 

Net cash flows from non-financial

assets

 

 

 

 

 

 

Purchases of non-financial assets

(603.1)

(514.1)

(731.8)

(708.1)

(520.5)

(511.9)

Sales of non-financial assets

33.0 

30.8 

30.4 

30.8 

51.6 

32.0 

 

(570.1)

(483.3)

(701.4)

(677.3)

(468.9)

(479.9)

 

 

 

 

 

 

 

Net cash flows from financial assets

(policy purposes)

 

 

 

 

 

 

Equity injections

(58.8)

(151.4)

(98.7)

(84.8)

(71.7)

(78.5)

Net advances paid

(2.1)

(24.4)

(27.6)

4.1 

6.6 

3.0 

Equity disposals

0.7 

1.1 

1.1 

1.1 

1.1 

1.1 

 

(60.3)

(174.6)

(125.1)

(79.6)

(63.9)

(74.4)

 

 

 

 

 

 

 


 

Table 4.3:         General Government Cash Flow Statement (continued)

 

2017-18 

2017-18 

2018-19 

2019-20 

2020-21 

2021-22 

 

 

Estimated 

 

Forward 

Forward 

Forward 

 

Budget 

Outcome 

Budget 

Estimate 

Estimate 

Estimate 

 

$m 

$m 

$m 

$m 

$m 

$m 

 

 

 

 

 

 

 

Net cash flows from financial assets

(liquidity management purposes)

 

 

 

 

 

 

Net purchase of investments

.... 

39.9 

(40.5)

(51.8)

(12.9)

(3.1)

 

.... 

39.9 

(40.5)

(51.8)

(12.9)

(3.1)

 

 

 

 

 

 

 

Net cash flows from investing activities

(630.3)

(618.0)

(866.9)

(808.6)

(545.7)

(557.5)

 

 

 

 

 

 

 

Net cash flows from financing activities

 

 

 

 

 

 

Net borrowing

147.8 

29.7 

170.0 

238.6 

36.1 

(4.8)

 

147.8 

29.7 

170.0 

238.6 

36.1 

(4.8)

 

 

 

 

 

 

 

Net Increase/(Decrease) in Cash Held

(62.3)

(123.4)

(191.3)

(115.3)

21.4 

31.8 

 

 

 

 

 

 

 

Cash at Beginning of the Year

1 179.6 

1 253.4 

1 130.0 

938.7 

823.3 

844.8 

Cash at End of the Year

1 117.2 

1 130.0 

938.7 

823.3 

844.8 

876.6 

 

 

 

 

 

 

 

KEY FISCAL AGGREGATES

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Cash Flows from Operating Activities

420.3 

464.9 

505.6 

454.7 

531.0 

594.0 

Plus Net cash flows from non-financial

assets

(570.1)

(483.3)

(701.4)

(677.3)

(468.9)

(479.9)

Equals CASH SURPLUS/(DEFICIT)

(149.8)

(18.4)

(195.7)

(222.6)

62.1 

114.1 

 

 

 

 

 

 

 

 

 

 

 


 

Policy and Parameter Statement

Introduction

The Policy and Parameter Statement is a reconciliation of the major movements in the Net Operating Balance and the Fiscal Balance between two points in time. The movements reflect changes between the Budget and Forward Estimates reported in the 2017‑18 Budget Papers and the 2018‑19 Budget Papers.

The movements in the PPS are classified as revenue, expenses or net acquisition of non‑financial assets and then further categorised as a policy or parameter change. The classification of a variation as a policy or parameter change is a matter of judgement and it is recognised that there may be some instances where part of a Government initiative may have both policy and parameter components. In exercising judgement, Treasury aims to ensure that Government decisions are made transparent.

Policy Variation

For the purpose of the PPS, a policy variation reflects a specific decision by the Government that has an impact on the Budget and Forward Estimates and is related to a new policy or represents a change in the Government’s existing policy position since the previous Budget. A decision to change a Budget or Forward Estimate item, which is consistent with an existing policy, is not a policy decision.

Parameter Variation

A parameter variation reflects changes to the Budget and Forward Estimates due to the economic environment, the agency operating environment or the timing of a transaction.

Parameter variations will reflect the impact of changes in taxes, grants or other income that do not arise because of a Government decision and demand and cost variations in agency service delivery, including the provision of indexation. Variations resulting from the rollover of a new Forward Estimate year and changes in accounting policies, such as a change in an agency depreciation policy or the impact on estimates of a change in an Australian Accounting Standard are classified as parameter variations.

Table 4.4 provides a summary of the policy and parameter changes detailed in Table 4.5 that have impacted on the formulation of the 2018‑19 Budget since the 2017‑18 Budget.

Further Information

Additional information on revenue estimates is provided in chapter 5 of this Budget Paper. Additional information on agency expenditure estimates, including 2018 Budget initiatives, is provided in the relevant agency chapters in Government Services Budget Paper No 2.

It should be noted that the estimates presented in the PPS were finalised prior to the release of the Australian Government’s 2018-19 Budget. Therefore, the movements included for Specific Purpose Payments and some National Partnership payments may differ from those published in the Australian Government 2018‑19 Budget due to different assumptions around timing and activity levels.


Table 4.4:         Summary Policy and Parameter Statement, 2017‑18 to 2021‑22

 

2017-18)

Estimated)

Outcome)

2018-19)

)

Budget)

2019-20)

Forward)

Estimate)

2020-21)

Forward)

Estimate)

2021-22 Forward Estimate1

 

$m)

$m)

$m)

$m)

$m

Forward Estimates (Net Operating Balance) as per the 2017‑18 Budget (A)

54.3 

50.7 

51.3 

45.3 

.... 

Forward Estimates (Fiscal Balance) as per the 2017‑18 Budget (B)

(253.9)

(229.2)

2.8 

71.1 

.... 

 

 

 

 

 

 

REVENUE

 

 

 

 

 

Policy Decisions2

.... 

.... 

.... 

.... 

.... 

Parameter Adjustments

161.7 

354.3 

264.4 

304.4 

.... 

TOTAL REVENUE VARIATIONS (C)

161.7 

354.3 

264.4 

304.4 

.... 

 

 

 

 

 

 

EXPENSES

 

 

 

 

 

Policy Decisions

105.1 

188.7 

167.4 

176.9 

191.5 

Parameter Adjustments

35.6 

54.4 

34.6 

24.6 

.... 

TOTAL EXPENSE VARIATIONS (D)

140.8 

243.1 

202.0 

201.5 

.... 

 

 

 

 

 

 

NET OPERATING BALANCE (A+C-D)

75.3 

161.9 

113.7 

148.3 

196.4 

 

 

 

 

 

 

Less NET ACQUISITION OF NON-FINANCIAL ASSETS

 

 

 

 

 

Purchases of non-financial assets

 

 

 

 

 

Policy Decisions

2.5 

157.0 

224.7 

243.4 

252.8 

Parameter Adjustments

(97.7)

10.0 

92.9 

(53.7)

.... 

 

(95.2)

167.0 

317.5 

189.7 

.... 

Less Sale of non-financial assets

 

 

 

 

 

Policy Decisions

.... 

.... 

.... 

.... 

.... 

Parameter Adjustments

(2.2)

.... 

.... 

20.7 

.... 

 

(2.2)

.... 

.... 

20.7 

.... 

Less Depreciation - Total Parameter Adjustments

(0.8)

0.4 

(0.1)

0.2 

.... 

NET ACQUISITION OF NON-FINANCIAL ASSETS VARIATIONS (E)

(92.2)

166.6 

317.6 

168.8 

.... 

 

 

 

 

 

 

FISCAL BALANCE (B+C-D-E)

(140.7)

(284.6)

(252.4)

5.3 

52.9 

 

 

 

 

 

 

Notes:

1.    Parameter adjustments for 2021‑22 are not reflected in the Table as the 2021‑22 Forward Estimate was not published in the 2017‑18 Budget. However, policy adjustments are reflected to show their full impact on the Budget and Forward Estimates.

2.    During the course of the 2018 State Election the Government announced the introduction of legislation to give effect to a suite of important tax reform initiatives that will support Tasmanian businesses and jobs. These include: a regional business relocation payroll tax holiday; a new lower payroll tax rate and threshold; and the foreign investor surcharge. Further information on the Government’s taxation reforms can be found in chapter 12 of Government Services Budget Paper No 2. The impact on estimated taxation receipts, as a result of the introduction of these new measures, is reflected in General Government Sector taxation estimates presented in this chapter and chapter 5 of this Budget Paper. General changes in the level of taxation estimates are considered to be parameter variations for the purposes of the Policy and Parameter Statement.

Table 4.5:         Policy and Parameter Statement, 2017-18 to 2021-22

 

2017-18 

2018-19 

2019-20 

2020-21 

2021-22 

 

Estimated 

 

Forward 

Forward 

Forward 

 

Outcome 

Budget 

Estimate 

Estimate 

Estimate1 

 

$m 

$m 

$m 

$m 

$m 

Forward Estimates (Net Operating Balance) as per

the 2017-18 Budget (A)

54.3 

50.7 

51.3 

45.3 

.... 

Forward Estimates (Fiscal Balance) as per the

2017-18 Budget (B)

(253.9)

(229.2)

2.8 

71.1 

.... 

 

 

 

 

 

 

Revenue from transactions

 

 

 

 

 

Parameter Adjustments

 

 

 

 

 

Taxation

 

 

 

 

 

Casino Tax and Licence Fees2

(3.7)

(4.0)

(4.3)

(4.8)

.... 

Duties3

20.7 

66.3 

73.7 

75.6 

.... 

Guarantee Fees

0.6 

(2.7)

(1.7)

(3.2)

.... 

Land Tax4

0.6 

3.1 

3.4 

4.0 

.... 

Lottery Tax

.... 

(0.2)

(0.4)

(0.6)

.... 

Motor Taxation

.... 

(0.1)

(0.2)

(0.3)

.... 

Payroll Tax5

14.5 

5.0 

3.4 

3.2 

.... 

Totalizator Wagering Levy

.... 

(0.1)

(0.1)

(0.1)

.... 

Vehicle Registration Fees

.... 

0.4 

0.9 

1.4 

.... 

Total Taxation

32.6 

67.8 

74.7 

75.1 

.... 

 

 

 

 

 

 

Dividend, tax and rate equivalent income

 

 

 

 

 

Dividend Income

 

 

 

 

 

Aurora Energy Pty Ltd

0.7 

(2.9)

(1.0)

(1.9)

.... 

Hydro Tasmania

.... 

55.7 

42.8 

10.3 

.... 

Motor Accidents Insurance Board

(0.6)

3.7 

4.0 

4.2 

.... 

Tasmanian Networks Pty Ltd

4.1 

5.8 

(14.6)

(10.0)

.... 

Tasmanian Ports Corporation Pty Ltd

(0.9)

0.5 

(0.4)

0.3 

.... 

Tasmanian Public Finance Corporation

(3.2)

(1.0)

0.1 

(0.5)

.... 

Public Trustee

0.1 

.... 

.... 

.... 

.... 

 

0.2 

61.8 

31.0 

2.4 

.... 

Income Tax Equivalents

 

 

 

 

 

Aurora Energy Pty Ltd

(1.4)

(0.4)

(0.9)

(0.8)

.... 

Hydro Tasmania

19.1 

15.6 

4.1 

(4.8)

.... 

Motor Accidents Insurance Board

(8.4)

(9.8)

(11.0)

(10.9)

.... 

Tasmanian Networks Pty Ltd

6.4 

(4.2)

(2.4)

(6.7)

.... 

Tasmanian Ports Corporation Pty Ltd

1.4 

0.4 

0.3 

(0.3)

.... 

Tasmanian Public Finance Corporation Pty Ltd

1.0 

(0.1)

0.5 

0.5 

.... 

TT‑Line Company Pty Ltd

(0.3)

(6.8)

(0.1)

.... 

.... 

 

17.9 

(5.3)

(9.5)

(23.0)

.... 

 

Table 4.5:         Policy and Parameter Statement, 2017-18 to 2021-22 (continued)

 

2017-18 

2018-19 

2019-20 

2020-21 

2021-22 

 

Estimated 

 

Forward 

Forward 

Forward 

 

Outcome 

Budget 

Estimate 

Estimate 

Estimate1 

 

$m 

$m 

$m 

$m 

$m 

Special Dividend Income

 

 

 

 

 

Sustainable Timber Tasmania

.... 

15.0 

.... 

.... 

.... 

 

.... 

15.0 

.... 

.... 

.... 

 

 

 

 

 

 

Total Dividend, tax and rate equivalent income

18.1 

71.6 

21.5 

(20.6)

.... 

 

 

 

 

 

 

Interest income

2.8 

0.2 

(2.8)

(5.0)

.... 

 

 

 

 

 

 

Australian Government Grants

 

 

 

 

 

General Purpose Payments

 

 

 

 

 

GST Revenue6

37.4 

20.7 

48.3 

73.0 

.... 

 

37.4 

20.7 

48.3 

73.0 

.... 

National Partnership Payments

 

 

 

 

 

Community Services (including Disability)

2.1 

91.2 

(79.1)

(0.3)

.... 

Education

2.8 

6.5 

.... 

.... 

.... 

Environment

18.9 

24.3 

23.3 

10.0 

.... 

Health

22.9 

13.6 

7.7 

0.2 

.... 

Housing

2.9 

.... 

.... 

.... 

.... 

Infrastructure

(44.1)

43.1 

101.8 

88.6 

.... 

Natural Disaster Relief and Recovery Arrangements

35.0

(0.5)

.... 

.... 

.... 

Other Services

3.8 

(34.5)

1.6 

1.0 

.... 

 

44.3 

143.7 

55.2 

99.6 

.... 

Specific Purpose Payments

 

 

 

 

 

Disability Services

0.2 

0.4 

.... 

.... 

.... 

National Affordable Housing

.... 

3.0 

3.1 

3.9 

.... 

National Health Reform

24.0 

39.0 

46.8 

55.2 

.... 

Quality Schools, Quality Outcomes

12.1 

17.2 

24.5 

31.7 

.... 

Skills and Workforce Development

0.3 

(2.6)

0.4 

0.5 

.... 

 

36.6 

56.9 

74.8 

91.2 

…. 

 

 

 

 

 

 

Other Australian Government Grants

0.7 

(1.0)

(1.8)

(2.8)

.... 

 

 

 

 

 

 

Total Australian Government Grants

119.0 

220.3 

176.5 

261.1 

.... 

 

 


 

Table 4.5:         Policy and Parameter Statement, 2017-18 to 2021-22 (continued)

 

2017-18 

2018-19 

2019-20 

2020-21 

2021-22 

 

Estimated 

 

Forward 

Forward 

Forward 

 

Outcome 

Budget 

Estimate 

Estimate 

Estimate1 

 

$m 

$m 

$m 

$m 

$m 

Agency Revenue

 

 

 

 

 

Communities Tasmania7

(2.8)

(3.3)

(3.7)

(4.0)

.... 

Education

(0.9)

(0.9)

(0.9)

0.4 

.... 

Finance-General

(4.2)

2.5 

0.3 

0.9 

.... 

Health

(0.9)

(7.7)

(8.5)

(5.4)

.... 

Justice

(0.4)

(0.1)

(0.1)

(0.1)

.... 

Marine and Safety Tasmania

0.6 

0.4 

0.4 

0.4 

.... 

Police, Fire and Emergency Management

0.7 

0.8 

2.1 

.... 

.... 

Premier and Cabinet

1.7 

5.1 

3.2 

4.7 

.... 

Primary Industries, Parks, Water and Environment

2.6 

3.7 

4.8 

5.1 

.... 

Royal Tasmanian Botanical Gardens

0.2 

0.1 

0.2 

0.6 

.... 

State Fire Commission

.... 

(0.1)

(0.1)

(0.1)

.... 

State Growth

(8.0)

(4.7)

(1.5)

(6.4)

.... 

TasTAFE

.... 

(2.3)

(2.6)

(2.9)

.... 

Tourism Tasmania

0.2 

0.2 

0.2 

0.2 

.... 

Treasury and Finance

0.4 

0.5 

0.6 

0.6 

.... 

Total Agency Revenue

(10.8)

(5.6)

(5.6)

(6.1)

.... 

 

 

 

 

 

 

Total Parameter Adjustments

161.7 

354.3 

264.4 

304.4 

.... 

 

 

 

 

 

 

TOTAL REVENUE ADJUSTMENTS (C)

161.7 

354.3 

264.4 

304.4 

.... 

 

 

 

 

 

 

Expenses from transactions

 

 

 

 

 

Policy Decisions8

 

 

 

 

 

Agency Expenditure

 

 

 

 

 

Communities Tasmania

 

 

 

 

 

Election Commitments

.... 

35.1 

19.3 

13.1 

3.8 

Out of Home Care - Additional Support

.... 

6.0 

6.0 

6.0 

6.0 

Safe Homes, Safe Families

.... 

.... 

6.0 

6.0 

6.0 

 

.... 

41.1 

31.3 

25.1 

15.8 

Education

 

 

 

 

 

Election Commitments

.... 

8.5 

17.0 

23.5 

32.0 

Year 7-12 Implementation Plan

3.0 

.... 

.... 

.... 

.... 

 

3.0 

8.5 

17.0 

23.5 

32.0 

 

 

Table 4.5:         Policy and Parameter Statement, 2017-18 to 2021-22 (continued)

 

2017-18 

2018-19 

2019-20 

2020-21 

2021-22 

 

Estimated 

 

Forward 

Forward 

Forward 

 

Outcome 

Budget 

Estimate 

Estimate 

Estimate1 

 

$m 

$m 

$m 

$m 

$m 

Finance-General

 

 

 

 

 

Election Commitments

.... 

8.5 

2.6 

2.0 

2.5 

City Deal Tamar River Catchment Projects State Cost

.... 

0.5 

1.0 

1.0 

1.0 

Energy Security Taskforce Final Report

0.1 

0.1 

0.1 

0.1 

0.1 

 

0.1 

9.1 

3.7 

3.1 

3.6 

Health

 

 

 

 

 

Ambulance Tasmania Additional Funding

4.0 

5.2 

5.2 

5.2 

5.2 

Community Rapid Response

0.4 

.... 

.... 

.... 

.... 

Election Commitments9

.... 

21.8 

43.7 

62.7 

80.5 

Elective Surgery Additional Activity 2017-18

14.3 

.... 

.... 

.... 

.... 

Elective Surgery Activity

.... 

20.0 

.... 

.... 

.... 

Secondary Triage Model - Ambulance Tasmania

0.3 

.... 

.... 

.... 

.... 

Street Team Project

0.1 

.... 

.... 

.... 

.... 

Rural Medical Practitioners (Tasmanian State Service) Agreement 2017

0.4 

.... 

.... 

.... 

.... 

THS increased demand

33.9 

.... 

.... 

.... 

.... 

 

53.4 

47.0 

48.9 

67.9 

85.7 

Legislative Council

 

 

 

 

 

Member Allowances10

.... 

.... 

.... 

.... 

.... 

 

.... 

.... 

.... 

.... 

.... 

Justice

 

 

 

 

 

Additional Tasmanian Prison Service Funding

4.3 

4.0 

4.0 

4.0 

4.0 

Court Security and Prisoner Transport

0.6 

0.8 

0.8 

0.8 

0.8 

Commonwealth Redress Scheme

.... 

25.0 

5.0 

5.0 

5.0 

Election Commitments

.... 

0.2 

.... 

.... 

.... 

Alternative Sentencing Options

.... 

4.3 

4.3 

4.3 

4.3 

 

4.9 

34.2 

14.1 

14.1 

14.1 

Police, Fire and Emergency Management

 

 

 

 

 

Election Commitments

.... 

5.0 

8.4 

12.0 

15.4 

Middleton Fire Station

0.6 

.... 

.... 

.... 

.... 

New Generation Emergency Alert Telephone

Warning System

.... 

0.5 

.... 

.... 

.... 

Police Enterprise Agreement 2018

5.1 

0.3 

0.7 

0.7 

0.7 

 

5.7 

5.8 

9.1 

12.7 

16.0 

 

 


 

Table 4.5:         Policy and Parameter Statement, 2017-18 to 2021-22 (continued)

 

2017-18 

2018-19 

2019-20 

2020-21 

2021-22 

 

Estimated 

 

Forward 

Forward 

Forward 

 

Outcome 

Budget 

Estimate 

Estimate 

Estimate1 

 

$m 

$m 

$m 

$m 

$m 

Premier and Cabinet

 

 

 

 

 

Cradle Coast Councils Feasibility Study

0.1 

.... 

.... 

.... 

.... 

Coastal Pathways

4.8 

.... 

.... 

.... 

.... 

Election Commitments

9.9 

.... 

.... 

.... 

.... 

Office of Security and Emergency Management

.... 

0.5 

0.5 

0.5 

0.5 

Glenorchy City Council Board of Inquiry

0.2 

.... 

.... 

.... 

.... 

Local Government Feasibility Study - George Town

and West Tamar Councils

0.1 

.... 

.... 

.... 

.... 

Reconciliation Council of Australia

0.1 

.... 

.... 

.... 

.... 

Secretariat for Sorell/Tasman Councils Share

Services Board

0.2 

.... 

.... 

.... 

.... 

Silverdome Operations

0.6 

.... 

.... 

.... 

.... 

 

15.9 

0.5 

0.5 

0.5 

0.5 

Primary Industries, Parks, Water and Environment

 

 

 

 

 

Biosecurity - Fruit Fly Response and Assistance Package11

8.0 

.... 

.... 

.... 

.... 

Drought Support Rural Relief

0.3 

.... 

.... 

.... 

.... 

Election Commitments

.... 

6.9 

10.3 

11.1 

10.9 

Macquarie Heads Campground

0.2 

.... 

.... 

.... 

.... 

Nyrstar Funding Agreement

.... 

1.4 

.... 

1.6 

.... 

Royal Tasmanian Botanical Gardens - New Visitor Centre

.... 

1.0 

2.6 

.... 

.... 

RTBG Bicentenary

0.1 

.... 

.... 

.... 

.... 

Save the Tasmanian Devil

0.8 

0.5 

0.5 

0.5 

0.5 

Welcome/Montagu Riverworks

0.4 

.... 

.... 

.... 

.... 

 

9.7 

9.8 

13.4 

13.2 

11.4 

State Growth

 

 

 

 

 

Industry Assistance Grants:

 

 

 

 

 

Additional support to DXC

0.4 

.... 

.... 

.... 

.... 

Biomar Group

2.3 

.... 

.... 

.... 

.... 

Carlton & United Breweries

.... 

1.0 

.... 

.... 

.... 

Castings Tasmania Pty Ltd

0.4 

.... 

.... 

.... 

.... 

Dundas Mining Pty Ltd

.... 

1.2 

1.2 

1.1 

.... 

Hermal Group

2.0 

2.5 

.... 

2.5 

2.0 

Houston’s Farm

0.7 

.... 

.... 

.... 

.... 

Other Industry Assistance

0.7 

0.2 

0.9 

0.6 

1.4 

Remarkable Lodge

.... 

0.4 

0.3 

0.3 

.... 

 

Table 4.5:         Policy and Parameter Statement, 2017-18 to 2021-22 (continued)

 

2017-18 

2018-19 

2019-20 

2020-21 

2021-22 

 

Estimated 

 

Forward 

Forward 

Forward 

 

Outcome 

Budget 

Estimate 

Estimate 

Estimate1 

 

$m 

$m 

$m 

$m 

$m 

State Growth (continued)

 

 

 

 

 

AFLW in Tasmania

.... 

0.5 

0.5 

0.6 

0.6 

Australian Rally Championships

0.1 

.... 

.... 

.... 

.... 

Bass Highway - Leith

0.3 

.... 

.... 

.... 

.... 

Business Incentives

.... 

.... 

.... 

0.1 

0.1 

Cessation of Transport Assistance for southern

sawmills

0.6 

.... 

.... 

.... 

.... 

Circular Head Working Group

1.5 

.... 

.... 

.... 

.... 

Election Commitments

.... 

18.1 

20.5 

8.0 

5.0 

Energy Security Management

0.1 

0.3 

0.3 

0.3 

0.3 

Festivale

0.1 

0.1 

0.1 

.... 

.... 

Flinders Island Telecommunications Upgrades

0.4 

.... 

.... 

.... 

.... 

Former Devonport Maternity Hospital

1.0 

.... 

.... 

.... 

.... 

ICC World Twenty20

.... 

0.5 

2.3 

0.3 

.... 

Mona Foma Festival

1.0 

.... 

.... 

.... 

.... 

Kangaroo Bay Redevelopment

0.1 

1.6 

.... 

.... 

.... 

Rosehaven - Season 3

0.3 

0.2 

.... 

.... 

.... 

Small Business Grants to Support Apprentices and

Trainees

0.2 

2.8 

.... 

.... 

.... 

TMAG Chiller Unit

0.1 

.... 

.... 

.... 

.... 

 

12.1 

29.4 

26.1 

13.7 

9.4 

Tourism Tasmania

 

 

 

 

 

Election Commitments

.... 

3.2 

3.2 

3.2 

3.0 

 

.... 

3.2 

3.2 

3.2 

3.0 

 

 

 

 

 

 

Total Policy Decisions

105.1 

188.7 

167.4 

176.9 

191.5 

 

 

 

 

 

 

Parameter Adjustments

 

 

 

 

 

Depreciation

(0.8)

0.4 

(0.1)

0.2 

.... 

Nominal superannuation interest expense

(30.7)

(18.8)

(19.5)

(20.3)

.... 

Borrowing costs

.... 

.... 

0.1 

0.5 

.... 

 

 

 

 

 

 

 

 


 

Table 4.5:         Policy and Parameter Statement, 2017-18 to 2021-22 (continued)

 

2017-18 

2018-19 

2019-20 

2020-21 

2021-22 

 

Estimated 

 

Forward 

Forward 

Forward 

 

Outcome 

Budget 

Estimate 

Estimate 

Estimate1 

 

$m 

$m 

$m 

$m 

$m 

Agency Expenditure

 

 

 

 

 

Communities Tasmania

19.9 

16.4 

11.6 

10.9 

.... 

Education

15.0 

16.1 

32.9 

29.0 

.... 

Finance-General

(13.6)

(51.2)

(24.1)

(28.1)

.... 

Health

53.0 

49.3 

40.1 

35.6 

.... 

House of Assembly

0.9 

0.9 

1.0 

1.0 

.... 

Inland Fisheries Service

.... 

0.1 

.... 

0.3 

.... 

Justice

3.5 

0.7 

1.0 

1.3 

.... 

Legislature-General

0.3 

0.1 

0.1 

0.1 

.... 

Marine and Safety Tasmania

2.0 

0.1 

0.1 

0.1 

.... 

Ministerial and Parliamentary Support

1.6 

1.8 

1.8 

1.8 

.... 

Office of the Governor

.... 

0.1 

0.1 

0.1 

.... 

Police, Fire and Emergency Management

3.7 

0.8 

2.1 

.... 

.... 

Premier and Cabinet

5.4 

5.1 

2.7 

3.2 

.... 

Primary Industries, Parks, Water and Environment

(0.3)

10.5 

5.0 

6.9 

.... 

Royal Tasmanian Botanical Gardens

(0.1)

0.5 

0.5 

0.5 

.... 

State Fire Commission

.... 

(1.1)

(0.9)

(0.4)

.... 

State Growth

(25.5)

22.6 

(14.9)

(9.8)

.... 

TasTAFE

0.7 

.... 

(1.9)

(3.2)

.... 

Tourism Tasmania

.... 

0.9 

0.2 

0.3 

.... 

Treasury and Finance

0.4 

.... 

0.5 

0.9 

.... 

Other12

0.2 

(1.0)

(3.9)

(6.3)

.... 

Total Agency Expenditure

67.2 

72.8 

54.2 

44.2 

.... 

 

Total Parameter Adjustments

35.6 

54.4 

34.6 

24.6 

.... 

 

 

 

 

 

 

TOTAL EXPENSES FROM TRANSACTIONS

VARIANCE (D)

140.8 

243.1 

202.0 

201.5 

.... 

 

 

 

 

 

 

NET OPERATING BALANCE

75.3 

161.9 

113.7 

148.3 

196.4 

 

 

 

 

 

 

 


 

Table 4.5:         Policy and Parameter Statement, 2017-18 to 2021-22 (continued)

 

2017-18 

2018-19 

2019-20 

2020-21 

2021-22 

 

Estimated 

 

Forward 

Forward 

Forward 

 

Outcome 

Budget 

Estimate 

Estimate 

Estimate1 

 

$m 

$m 

$m 

$m 

$m 

less NET ACQUISITION OF NON-FINANCIAL

ASSETS FROM TRANSACTIONS

 

 

 

 

 

Purchases of non-financial assets from

transactions

 

 

 

 

 

Policy Decisions13

 

 

 

 

 

Communities Tasmania

 

 

 

 

 

Election Commitments

.... 

27.0 

29.0 

36.3 

25.0 

 

.... 

27.0 

29.0 

36.3 

25.0 

Education

 

 

 

 

 

Election Commitments

.... 

8.9 

25.7 

31.8 

29.8 

 

.... 

8.9 

25.7 

31.8 

29.8 

Finance-General