7    Assets and Liabilities

Key Issues

·       General Government Net Worth is estimated to be $11 593.3 million as at 30 June 2019. Net Worth is estimated to increase over the Forward Estimates period to $12 949.3 million by 30 June 2022.

·       General Government Net Debt is estimated to be negative $329.6 million as at 30 June 2019, a deterioration of $122.2 million on the 2017‑18 Budget estimate of negative $451.8 million as at 30 June 2018. General Government Net Debt is expected to be negative $51.6 million as at 30 June 2022.

·       The most significant liability on the General Government Balance Sheet is the General Government Superannuation liability, which is estimated to be $6 868.1 million as at 30 June 2019.

·       The Government continues to meet the cash cost of the defined benefit superannuation schemes on an emerging basis ($284.5 million in 2018‑19). While forecast to be manageable, a key ongoing Budget risk is that the cash cost to the Budget will increase significantly in the coming years, with cash payments anticipated to increase over the next 14 years, peaking in 2032‑33 ($437.8 million).

·       The present value of superannuation liabilities is particularly sensitive to discount rate movements, although these movements do not impact on the cash costs that require funding. The 2018‑19 Budget projections are based on a discount rate of 4.25 per cent, which is a decrease of 0.5 of a percentage point from the discount rate used for the 2017‑18 Budget.


Balance Sheet

The Balance Sheet presented in this chapter provides assets and liabilities estimated as at 30 June 2018 to 2022 and reports key indicators for the same period. This includes an Estimated Outcome for the current year. By providing information on the nature of assets and liabilities held by the Government, this Statement gives an indication of the State’s financial strength.

The key measures presented in the Balance Sheet are Net Worth, Net Financial Worth, Net Financial Liabilities and Net Debt.

Table 7.1 details the estimated General Government Sector Balance Sheet as at 30 June from 2018 to 2022.


Table 7.1:         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 deposits

 1 117.2 

 1 130.0 

  938.7 

  823.3 

  844.8 

  876.6 

Investments

  46.4 

  71.7 

  139.8 

  187.5 

  193.7 

  193.9 

Equity investment in PNFC and PFC sectors

 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 buildings

 6 265.3 

 6 270.9 

 6 635.1 

 6 988.5 

 7 160.6 

 7 311.5 

Infrastructure

 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

 

Borrowings

  711.8 

  579.3 

  748.9 

  987.5 

 1 023.6 

 1 018.9 

Superannuation

 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 7.1:           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 WORTH1

 11 723.5 

 11 244.9 

 11 593.3 

 11 971.0 

 12 419.8 

 12 949.3 

 

NET FINANCIAL WORTH2

(164.6)

(775.3)

( 1 155.1)

( 1 443.7)

( 1 442.0)

( 1 370.1)

 

NET FINANCIAL LIABILITIES3

 5 818.6 

 6 192.7 

 6 553.4 

 6 867.2 

 6 906.8 

 6 905.5 

 

NET DEBT4

(451.8)

(622.4)

(329.6)

(23.3)

(14.8)

(51.6)

 

 

 

 

 

 

 

Notes:

1.   Net Worth represents Total Assets (both Financial and Non‑Financial) less Total Liabilities.

2.   Net Financial Worth represents Total Financial Assets less Total Liabilities.

3.   Net Financial Liabilities represents Total Liabilities less Financial Assets, excluding Equity investment in PNFC and PFC sectors.

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

Assets

Total Assets are estimated to be $20 392.9 million as at 30 June 2019, an increase of $529.1 million from the 2017‑18 Budget estimate of $19 863.8 million as at 30 June 2018. The increase primarily reflects an increase in Land and buildings of $369.8 million and Infrastructure assets of $443.4 million which is partly offset by a decrease in the Equity investment in PNFC and PFC sectors of $255.7 million.

Equity Investment in PNFC and PFC Sectors

This consists of the Government’s investment in the net assets of the Public Non‑Financial Corporations and Public Financial Corporations sectors.

The Government’s equity investment is estimated to be $5 398.3 million as at 30 June 2019, a decrease of $255.7 million from the 2017‑18 Budget estimate of $5 654 million as at 30 June 2018. This primarily reflects a decrease in the net assets of the PNFC Sector. The decline in PNFC Sector net assets is a result of a decrease for electricity entities of $374 million which is primarily due to the impact of 2017 net asset balances that were not known at the time of the 2017-18 Budget and are reflected in the 2018 Estimated Outcome. This decrease is partly offset by an increase for TT‑Line Company Pty Ltd of $79.9 million, reflecting the return of $80 million (plus interest) that was previously held in the TT‑Line Vessel Replacement Fund.


 

Chart 7.1 illustrates the components of the Government’s equity investment holdings.

Chart 7.1:          Equity Investment in PNFC and PFC Sectors as at 30 June 2019

Title: Equity Investment in PNFC and PFC Sectors as at 30 June 2019 - Description: This chart shows that the largest component of the Government's Equity Investment holdings is in the Electricity sector (58.3%), followed by the Financial sector (23.5%) and the Transport sector (8.8%).

Other Financial Assets

Other financial assets primarily includes Income tax equivalents receivable and Prepayments. Other financial assets is estimated to be $802.9 million as at 30 June 2019, a decrease of $12.5 million on the 2017‑18 Budget estimate of $815.4 million as at 30 June 2018. The decrease primarily reflects a $17.1 million decrease in the Income tax equivalents estimate and an increase of $4.6 million in Prepayments.

Table 7.2 provides a summary of Other financial assets.

Table 7.2:         Other Financial Assets 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 

 

 

 

 

 

 

 

Income tax equivalents receivable

  797.0 

  773.8 

  779.9 

  802.8 

  817.5 

  835.0 

Prepayments

  18.4 

  22.9 

  23.0 

  23.3 

  23.5 

  23.7 

  815.4 

  796.6 

  802.9 

  826.0 

  841.1 

  858.8 

 

 

 

 

 

 

 

 


 

Non‑Financial Assets

Non‑financial assets include the value of Crown Land and other land holdings, including national parks and conservation areas, schools, hospitals and other buildings held by the Government for the provision of goods and services. Non‑financial assets also includes Plant and equipment, Intangibles, Assets held for sale and Other non‑financial assets.

Land and buildings is estimated to be $6 635.1 million as at 30 June 2019, an increase of $369.8 million on the 2017‑18 Budget estimate of $6 265.3 million as at 30 June 2018. Land and buildings is estimated to increase by $676.4 million to $7 311.5 million as at 30 June 2022. This primarily reflects increased capital expenditure on schools, housing and hospital assets undertaken by the Department of Education, Department of Communities Tasmania and Department of Health.

Infrastructure is estimated to be $5 259.9 million as at 30 June 2019, an increase of $443.4 million on the 2017‑18 Budget estimate of $4 816.5 million as at 30 June 2018. Infrastructure is estimated to increase by $826.9 million to $6 086.8 million as at 30 June 2022, which primarily reflects capital expenditure on road infrastructure assets by the Department of State Growth.

The increase in Land and buildings and Infrastructure over the 2018‑19 Budget and Forward Estimates period reflects the implementation of the Government’s infrastructure investment program. Further information regarding infrastructure investment is provided in chapter 6 of this Budget Paper.

Liabilities

Total Liabilities is estimated to be $8 799.6 million as at 30 June 2019, increasing over the Forward Estimates period, with estimated Total Liabilities of $9 256.6 million as at 30 June 2022.

The estimated 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 30 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 overnight on 30 June with the Tasmanian Public Finance Corporation, grossing up the amount of cash held and borrowings.

Other liabilities (which includes Tasmanian Risk Management Fund liabilities) is estimated to be $398.4 million as at 30 June 2019, a decrease of $11.3 million compared to the 2017‑18 Budget of $409.7 million as at 30 June 2018. The decrease primarily reflects the impact of 2017 actual balances that were not known at the time of preparing the 2017‑18 Budget.


 

General Government Superannuation Liability

The Government’s superannuation liability is an estimate of the obligations of the State with respect to liabilities arising from the current and former members of unfunded or partially funded Public Sector defined benefit superannuation schemes, which were closed to new members with effect from May 1999.

The superannuation liability is an estimate of the net present value of the Government’s share of meeting current and future benefit payments for scheme members. The superannuation liability differs from many other financial liabilities, such as Borrowings, which can be called on for repayment in full at any point in time.

The superannuation liability has arisen over many decades because benefits are funded on an emerging basis when scheme members become entitled to a pension or lump sum benefit. That is, the Government’s portion of the final benefit is paid when it falls due, with the remaining part of the benefit being funded from the scheme’s assets. The major schemes currently operating in the General Government Sector that have an unfunded liability are those established under the Public Sector Superannuation Reform Act 2016, the former Parliamentary Superannuation Act 1973, the former Parliamentary Retiring Benefits Act 1985 and the Judges’ Contributory Pensions Act 1968.

While these schemes have been closed to new members, because of the long‑term nature of superannuation benefits, the superannuation liability continues to increase as existing members accrue additional years of service as they approach retirement age. The liability is projected to increase until 2023‑24 and then gradually decline over the following five or six decades.

The Government recognises that superannuation is a significant liability and will continue to ensure that it manages this critical ongoing funding task in the most prudent way and in accordance with the recommendations of the State Actuary.

General Government Superannuation is estimated to be $6 868.1 million as at 30 June 2019, which is comprised of the estimated present value of the liability of $8 747.2 million less the estimated fair value of plan assets of $1 879.2 million.

Table 7.3:         General Government Superannuation Liability as at 30 June

 

2018 

 

  Budget 

2018 

Estimated 
Outcome 

2019 

 

  Budget 

2020 

Forward 
Estimate 

2021 

Forward 
 Estimate 

2022 

Forward 
Estimate 

 

$m 

$m 

$m 

$m 

$m 

$m 

 

 

 

 

 

 

 

Present value of superannuation liability

8 057.2 

8 673.0 

8 747.2 

8 801.7 

8 833.0 

8 839.0 

Fair value of plan assets

(1 790.8)

(1 886.8)

(1 879.2)

(1 868.7)

(1 851.1)

(1 824.0)

 

 

 

 

 

 

 

Total

6 266.3 

6 786.2 

6 868.1 

6 933.0 

6 981.9 

7 015.0 

 

 

 

 

 

 

 

 


 

Chart 7.2 projects the General Government Superannuation liability (net of plan assets) over the total life of the defined benefit schemes to 30 June 2080.

Chart 7.2:          General Government Superannuation Liability Projection, 30 June 2019 to 30 June 2080

Title: General Government Superannuation Liability Projection, 30 June 2019 to 30 June 2080 - Description: The chart shows that the General Government Superannuation Liability is predicted to grow until 2022 23 and then gradually declining over the following five decades to 2080.

 

Independent actuarial assessments are prepared by the State Actuary to provide reporting and disclosure information, relating to the General Government Superannuation liability, in respect of current and former employees who have defined benefits arising from membership of the closed defined benefit superannuation schemes.

The actuarial assumptions are used for the variables that will determine the ultimate cost of providing long‑term superannuation benefits. Actuarial assumptions must be unbiased (i.e. neither imprudent nor excessively conservative) and should reflect the economic relationships between factors such as inflation, rates of salary increase, the return on scheme assets and discount rates.

Key assumptions used by the State Actuary in preparing the most recent actuarial estimate of the General Government Superannuation liability are:

·       Discount rate ‑ 4.25 per cent;

·       Salary increase rate ‑ 3.0 per cent;

·       Pension increase rate ‑ 2.5 per cent; and

·       Investment earnings ‑ 4.25 per cent.


 

It is important to recognise that the actuarial estimate is a snapshot of a scheme’s estimated financial position at a particular point in time, and that the actuarial results do not predict a scheme’s future financial position or its ability to pay benefits in the future. Over time, a scheme’s total cost will depend on a number of factors, including the amount of benefits the scheme pays, the number of people paid benefits (for example mortality and marital status are estimated), scheme expenses and the amount earned on any assets invested to pay the benefits. These variables will change over the life of the liability. The variables are uncertain at the valuation date and are estimated by the State Actuary.

The superannuation liability is particularly sensitive to discount rate movements. Since 2009‑10, due to the volatility of the bond market and the long‑term nature of the liability, the Budget projections of the Superannuation liability do not use the current Australian Government long‑term bond rate. The 2018‑19 Budget projections are based on a discount rate of 4.25 per cent. This is a 0.5 percentage point change in the average discount rate used to value the General Government Superannuation liability from the 2017‑18 Budget of 4.75 per cent. Based on advice from the State Actuary, 4.25 per cent is the midpoint of the ten year and 15 year averages of the historical average yield of ten year Government bond rates.

There is a strong inverse relationship between the discount rate and the valuation of the liability. Chart 7.3 shows the impact of an increase or decrease of one per cent in the average discount rate used to value the General Government Superannuation liability. The base rate column represents the estimated present value of the superannuation liability (gross) as at 30 June in each year valued by the State Actuary using a discount rate of 4.25 per cent.

Chart 7.3:          Sensitivity Analysis of the General Government Superannuation Liability as at 30 June

Title: Sensitivity Analysis of the General Government Superannuation Liability as at 30 June - Description: This chart demonstrates that there is a strong inverse relationship between the discount rate and the valuation of the liability and shows the impact of an increase or decrease of one per cent in the average discount rate used to value the General Government Superannuation Liability.

 

Currently, the emerging cash cost of defined benefit superannuation payments is met from the Consolidated Fund, funded partly by agency contributions and by a Reserved by Law contribution, which comprises the balance of the Government’s share of pension and lump sum benefit costs.

 


 

Chart 7.4 shows the estimated employer contribution payments, made up of both pension and lump sum benefit costs, over the period 2018-19 to 2079-80.

Chart 7.4:          Defined Benefit Superannuation Costs, 2018‑19 to 2079‑80

Title: Defined Benefit Superannuation Costs, 2018-19 to 2079-80 - Description: The chart shows that estimated employer contribution payments are predicted to peak in 2031-32 and then gradually decline over the following period to 2079-80.

 

A key budget risk is that the cost to the Budget will increase significantly in coming years, increasing by 53.9 per cent over the next 14 years and peaking in 2032‑33. The estimated cost to the Budget is based on the most recent actuarial estimates. The change from the projections in the 2017-18 Budget reflects a 1.1 per cent decrease in the expected peak cost to $437.8 million ($442.6 million in the 2017‑18 Budget).

In 2018‑19, defined benefit superannuation costs are estimated to be 4.4 per cent of Cash receipts from operating activities in the General Government Sector. Defined benefit superannuation costs, as a percentage of General Government cash receipts, is estimated to peak at 5 per cent in nine years (2027‑28), followed by a decrease to 4.3 per cent in 15 years (2033-34) and 3.5 per cent in 20 years (2038-39).

While movements in discount rates have a significant impact on the valuation of the superannuation liability at any point of time, those discount rate movements do not impact on the nominal cash flows required to meet the emerging cost of benefits paid to members.


 

Table 7.4 shows the estimated nominal cash flows required to meet the emerging cost of superannuation benefits payable to members. This represents the estimated total cost of benefits payable and includes the General Government share, together with the share of benefits that are funded from plan assets.

Table 7.4:           Undiscounted Defined Benefit Obligations Payable to Employees of the General Government Sector

 

2018 

 

Estimate 

 

$m 

Estimated total benefit payments to be made in the period

 

No later than 1 year

410 

Later than 1 year and no later than 2 years

424 

Later than 2 years and no later than 5 years

1 364 

Later than 5 years and no later than 10 years

2 535 

Later than 10 years and no later than 15 years

2 773 

Later than 15 years and no later than 20 years

2 759 

Later than 20 years and no later than 25 years

2 559 

Later than 25 years and no later than 30 years

2 235 

Later than 30 years and no later than 35 years

1 795 

Later than 35 years and no later than 40 years

1 277 

Later than 40 years and no later than 45 years

775 

Later than 45 years and no later than 50 years

378 

 

 

Undiscounted defined benefit obligation

19 284 

 

 

After 50 years there is expected to be a reducing level of cash for a further 25 years totalling approximately:

173 

 

 

 


 

Total State Superannuation Liability

Total State Superannuation as at 30 June 2019 is estimated to be $7 400.8 million, which is comprised of the estimated present value of the liability of $9 419.2 million less the estimated fair value of plan assets of $2 018.3 million. Total State includes Government Business Enterprises and State‑owned Companies.

Table 7.5:         Total State Superannuation Liability as at 30 June

 

2018 

 

  Budget 

2018 

Estimated  Outcome 

2019 

 

  Budget 

2020 

Forward 
Estimate 

2021 

Forward 
 Estimate 

2022 

Forward 
Estimate 

 

$m 

$m 

$m 

$m 

$m 

$m 

 

 

 

 

 

 

 

Present value of superannuation liability

8 706.5 

9 338.9 

9 419.2 

9 478.1 

9 512.2 

9 519.2 

Fair value of plan assets

(1 930.5)

(2 026.5)

(2 018.3)

(2 007.1)

(1 988.3)

(1 959.3)

 

 

 

 

 

 

 

Total

6 776.0 

7 312.3 

7 400.8 

7 471.0 

7 523.9 

7 559.9 

 

 

 

 

 

 

 

 

Chart 7.5 shows the impact of an increase or decrease of one per cent in the discount rate used to value the Total State Superannuation Liability. The base rate column represents the estimated present value of the superannuation liability (gross) as at 30 June in each year valued by the State Actuary using a discount rate of 4.25 per cent.

Chart 7.5:          Sensitivity Analysis of the Total State Superannuation Liability as at 30 June

Title: Sensitivity Analysis of the Total State Superannuation Liability as at 30 June - Description: This chart demonstrates that there is a strong inverse relationship between the discount rate and the valuation of the liability and shows the impact of an increase or decrease of one per cent in the average discount rate used to value the Total State Superannuation Liability.

 

Table 7.6 shows the estimated nominal cash flows required to meet the emerging cost of superannuation benefits payable to members. This represents the estimated total cost of benefits payable and includes the Total State share, together with the share of benefits that are funded from plan assets.

Table 7.6:           Undiscounted Defined Benefit Obligations Payable to Employees of the Total State Sector

 

2018 

 

Estimate 

 

$m 

Estimated total benefit payments to be made in the period

 

No later than 1 year

 441 

Later than 1 year and no later than 2 years

 456 

Later than 2 years and no later than 5 years

1 467 

Later than 5 years and no later than 10 years

2 729 

Later than 10 years and no later than 15 years

2 986 

Later than 15 years and no later than 20 years

2 971 

Later than 20 years and no later than 25 years

2 757 

Later than 25 years and no later than 30 years

2 408 

Later than 30 years and no later than 35 years

1 935 

Later than 35 years and no later than 40 years

1 376 

Later than 40 years and no later than 45 years

 836 

Later than 45 years and no later than 50 years

 408 

 

 

Undiscounted defined benefit obligation

20 769 

 

 

After 50 years there is expected to be a reducing level of cash for a further 25 years totalling approximately:

186 

 

 

 


 

Tasmanian Risk Management Fund

Purpose of the Fund

The Tasmanian Risk Management Fund was established on 1 January 1999 to provide a whole‑of‑government approach to funding and managing the insurable risks of inner‑Budget agencies.

Agencies are covered for the majority of insurable risks to which they are exposed or for which they choose to accept responsibility and the Fund agrees to cover, including:

·       personal injury (including workers’ compensation and personal accident);

·       property (including buildings and contents, business interruption, motor vehicles, machinery, marine hull, transit and fraud);

·       liability (including public and products, professional, and directors’ and officers’ liability);

·       medical liability; and

·       travel.

All classes are self‑insured by the Fund apart from marine hull, travel, and some property claims, which remain insured through the private sector, as this is more cost-effective than self‑insurance for these categories of risk. From 1 July 2015, an Industrial Special Risks Insurance Policy has been purchased in the external market to cover catastrophic risk for property claims above $5 million.

Performance of the Fund

The Fund operates on a cost recovery basis with all inner‑Budget agencies making contributions each year in order to build up reserves to meet current and emerging costs. Contributions are based on advice from an independent actuary and are adjusted over time according to the claims experience of agencies.

The expected overall increase in contributions for 2018-19 is mainly due to increases in both workers’ compensation and medical liability contributions. The significant increase in workers’ compensation contributions is primarily as a result of higher claim costs in recent years, higher staff costs and a deterioration in the funding level of this risk category. The contribution for medical liability has increased moderately reflecting higher projected claim costs and incidence rates for both large and small claims in 2018-19. Contributions for motor vehicles and general property will also increase in line with inflation. These increases will be marginally offset by a substantial decrease in general liability contributions, which is mainly due to the continued favourable funding position of this risk category. Overall, total agency contributions are expected to increase from $60.2 million in 2017-18 to $67.5 million in 2018-19.

In terms of the financial position of the Fund, the actuary takes into account the level of assets and liabilities in each risk category when determining annual contributions. The net assets of the Fund are expected to increase over time mainly reflecting improvement in the funding position for the workers’ compensation risk, a rebuilding of the large claim funding reserve of $5 million for property risk and a significant pre-2001 medical liability risk provision. The provision is being maintained for medical liability risk as claims can take many years to be reported and many more years to reach a settlement. These reporting and settlement delays mean that the outstanding claims liability in this risk category is subject to considerable uncertainty.

Table 7.7:           Financial Position of the Tasmanian Risk Management Fund
as at 30 June

 

2018 

2018 

2019 

2020 

2021 

2022 

 

Budget 

Estimated 
 Outcome 

Budget 

Forward 
 Estimate 

Forward 
 Estimate 

Forward 
 Estimate 

 

$m 

$m)

$m)

$m)

$m)

$m)

 

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

Cash and cash equivalents

238.4 

250.0 

259.1 

267.3 

279.2 

290.7 

Receivables

0.8 

0.8 

0.8 

0.8 

0.8 

0.8 

 

239.2 

250.8 

259.9 

268.1 

280.0 

291.5 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

Personal injury

102.2 

104.0 

108.5 

113.3 

117.7 

122.1 

Property

0.8 

7.2 

5.4 

2.6 

3.5 

3.6 

Motor vehicle

0.4 

0.3 

0.3 

0.3 

0.3 

0.3 

Liability

6.9 

4.0 

4.2 

4.4 

4.6 

4.8 

Medical

118.5 

118.3 

122.9 

128.4 

134.4 

140.8 

Payables

0.8 

1.3 

1.3 

1.3 

1.3 

1.3 

 

229.6 

235.1 

242.6 

250.3 

261.8 

272.9 

 

 

 

 

 

 

 

Net Assets

9.6 

15.7 

17.3 

17.8 

18.2 

18.6