4     Finance‑General

Agency Outline

The Finance‑General Division is administered by the Department of Treasury and Finance.

The major activities transacted through Finance‑General include the management of the Government’s financial assets and liabilities, meeting the Government’s pension and other superannuation commitments, administration of the Tasmanian Risk Management Fund, management of the Government’s light vehicle fleet and property portfolio and payments to government businesses.

Finance-General also includes funding to assist with the replacement of the Spirits of Tasmania (I and II) within the TT-Line Vessel Replacement Fund and funding for the transformation and replacement of critical agency ICT infrastructure.

Certain provisions have been made in the Special Deposits and Trust Fund to meet future liabilities of the Government, including a provision within the Tasmanian Risk Management Fund for workers’ compensation and other insurable risks in respect of inner‑Budget agencies. Information on the Government’s superannuation liabilities and administration of the Tasmanian Risk Management Fund is provided in chapter 7 of The Budget Budget Paper No 1.

Output Information

Outputs of Finance‑General are provided under the following Output Groups:

·       Output Group 1 ‑ Debt Servicing and Management;

·       Output Group 2 ‑ Employee Related Costs;

·       Output Group 3 ‑ Government Businesses; and

·       Output Group 4 ‑ Miscellaneous.

Table 4.1 provides an Output Group Expense Summary for Finance‑General.


 

Table 4.1:         Output Group Expense Summary

 

2017-18 

2018-19 

2019-20 

2020-21 

2021-22 

 

 

 

Forward 

Forward 

Forward 

 

Budget 

Budget 

Estimate 

Estimate 

Estimate 

 

$'000 

$'000 

$'000 

$'000 

$'000 

 

 

 

 

 

 

Treasurer

 

 

 

 

 

 

 

 

 

 

 

Output Group 1 - Debt Servicing and Management

 

 

 

 

 

1.1 Debt Servicing

49 

62 

35 

44 

43 

1.2 Interest on Sundry Deposits1

1 566 

1 838 

1 790 

2 265 

2 762 

1.3 Debt Management

7 727 

7 384 

7 033 

6 677 

6 316 

 

9 342 

9 284 

8 858 

8 986 

9 121 

Output Group 2 - Employee Related Costs

 

 

 

 

 

2.1 Superannuation and Pensions2

373 734 

364 915 

362 434 

358 989 

354 645 

 

373 734 

364 915 

362 434 

358 989 

354 645 

Output Group 3 - Government Businesses

 

 

 

 

 

3.1 Sustainable Timber Tasmania

2 000 

2 000 

2 000 

2 000 

2 000 

3.2 State Fire Commission

2 836 

2 836 

2 836 

2 836 

2 836 

3.4 Government Businesses3

1 504 

1 870 

1 355 

1 339 

1 323 

 

6 340 

6 706 

6 191 

6 175 

6 159 

Output Group 4 - Miscellaneous

 

 

 

 

 

4.2 Treasurer's Reserve

10 000 

10 000 

10 000 

10 000 

10 000 

4.3 Miscellaneous4

35 891 

23 829 

33 813 

35 346 

38 103 

4.4 Payment to Australian Tax Office: GST Administration5

13 289 

12 524 

9 776 

9 727 

9 727 

4.5 Tasmanian Risk Management Fund6

69 432 

66 165 

66 834 

67 336 

70 321 

4.6 Fleet Management Services

14 872 

13 960 

13 868 

13 811 

13 803 

4.7 Property Management Services7

27 509 

27 528 

30 058 

30 614 

31 279 

4.8 Infrastructure Investment Project Planning

2 000 

2 000 

2 000 

2 000 

2 000 

 

172 993 

156 006 

166 349 

168 834 

175 233 

 

 

 

 

 

 

Grants and Subsidies8

488 923 

495 075 

368 958 

253 992 

284 288 

 

 

 

 

 

 

Capital Investment Program

.... 

292 

583 

583 

583 

 

 

 

 

 

 

Special Capital Investment Funds9

13 428 

7 313 

1 084 

1 116 

624 

 

 

 

 

 

 

 

 

 

 

 

 

TOTAL

1 064 760 

1 039 591 

914 457 

798 675 

830 653 

 

 

 

 

 

 

Notes:

1.    The variations in Interest on Sundry Deposits are primarily due to anticipated variations in interest rates and cash balances over the Budget and Forward Estimates period.

2.    The decrease in Superannuation and Pensions over the Budget and Forward Estimates period reflects revised actuarial estimates.

3.    The increase in Government Businesses in 2018-19 primarily reflects grant funding of $500 000 to Metro Tasmania Pty Ltd for a preliminary study to inform the introduction of a new Derwent River ferry service.

4.    The decrease in Miscellaneous in 2018-19 primarily reflects the transfer of the Health Funding Provision of $20 million to the Department of Health. The increases from 2019-20 reflect revised cash flows for the Mobile Radio Network.

5.    The decrease in GST Administration costs from 2019-20 reflects the end of the GST Voluntary Compliance Program from 1 July 2019.

6.    The variations in Tasmanian Risk Management Fund reflect the most recent actuarial estimates of expenditure and revised cash flows associated with the June 2016 flood event and the major fire claim at the Peacock Centre.

7.    The increase in Property Management Services from 2019-20 reflects the inclusion of rent paid for buildings newly leased as a result of the restructure of the property portfolio.

8.    The variations in Grants and Subsidies across the Budget and Forward Estimates period primarily reflects cash flow movements in Australian Government Funding expenditure.

9.    The decrease in Special Capital Investment Funds reflects the winding down of these funds. Further details are provided in the Special Capital Investment Funds section of this chapter.

Output Group 1:    Debt Servicing and Management

1.1 Debt Servicing

This Output provides for the interest cost on the end of year borrowing.

1.2 Interest on Sundry Deposits

This Output provides for the payment of interest on balances held in certain accounts in the Special Deposits and Trust Fund.

1.3 Debt Management

This Output reflects transactions associated with the repayment of Australian Government debt relating to housing activities.

The expense of $7.4 million in 2018-19 ($7.7 million in 2017-18) represents interest payments to the Australian Government on debt incurred under various Commonwealth‑State Housing Agreements.

Principal repayments by Housing Tasmania of $7.9 million in 2018-19 ($7.8 million in 2017‑18) are capital transactions and are therefore not included in the expenses of Output 1.3, or in the expenses reported in the Statement of Comprehensive Income, but are reflected within Interest bearing liabilities in the Statement of Financial Position and included under Cash flows from investing activities in the Statement of Cash Flows.

Output Group 2:    Employee Related Costs

2.1 Superannuation and Pensions

This Output meets the Government’s share of pension and superannuation costs.

In 2018-19, superannuation and pension expenses are estimated to total $364.9 million, an anticipated decrease of $8.8 million in comparison with the budgeted cost in 2017-18 of $373.7 million. The 2018-19 estimate includes service costs of $93.7 million ($88.1 million in 2017-18) and nominal interest of $271.3 million ($285.6 million in 2017-18). The estimated value of the expense is based on the most recent actuarial assessment of the superannuation liability.


 

The estimated superannuation liability as at 30 June 2019 is $6 874.9 million (excluding the estimated Housing Tasmania pre‑July 1994 superannuation liability of $8.7 million as at 30 June 2019, the estimated Tasmanian Ambulance Services Superannuation Scheme liability of negative $11.1 million as at 30 June 2019 and the estimated State Fire Commission superannuation liability of negative $4.4 million as at 30 June 2019). This is an increase of $611.4 million from the 2017-18 estimate of the liability as at 30 June 2018 of $6 263.5 million. The estimated value reflects the most recent actuarial assessment of the liability. Further information in relation to the General Government superannuation liability can be found in chapter 7 of The Budget Budget Paper No 1.

Output Group 3:   Government Businesses

3.1 Sustainable Timber Tasmania

The 2018-19 Budget provides funding of $2 million in 2018‑19 ($2 million in 2017‑18) and subsequent years to Sustainable Timber Tasmania to maintain its fire fighting capacity and assist with fighting wild fires.

3.2 State Fire Commission

A provision of $2.8 million has been made for the State Fire Commission in 2018-19 and subsequent years ($2.8 million in 2017-18). Of this amount, a provision of $790 000 has been made for the Bushfire Mitigation Program and $240 000 has been appropriated as a contingent provision for funding excess fire fighting costs. This represents base additional funding for bushfire fighting costs. Due to the uncertain nature of these costs from year to year, it is established practice that additional funding is provided as required in response to the actual costs incurred by the Commission. The remaining $1.8 million represents the State Government’s annual funding contribution to the Commission in accordance with section 101 of the Fire Service Act 1979. Further information in relation to the State Fire Commission can be found in chapter 25 of this Budget Paper.

3.4 Government Businesses

This Output provides for expenses arising from the Government’s ownership interests in Government businesses.

An amount of $1.4 million is being provided in 2018-19 ($1.5 million in 2017-18) in accordance with the Government’s agreement to reimburse Tasracing Pty Ltd for the costs (including principal where necessary) associated with Tasracing’s borrowings with the Tasmanian Public Finance Corporation, where Tasracing cannot meet those costs. The 2018-19 Budget also provides grant funding of $500 000 to Metro Tasmania Pty Ltd, for a preliminary study to inform the introduction of a new Derwent River ferry service.


 

Output Group 4:   Miscellaneous

4.2 Treasurer’s Reserve

An amount of $10 million has been provided in the Treasurer’s Reserve in 2018-19 ($10 million in 2017-18) to meet expenditure that could not reasonably be foreseen at the time of developing the 2018-19 Budget and which is essential for efficient financial management.

4.3 Miscellaneous

Items of expenditure under this Output relate to various miscellaneous payments, including the Mobile Radio Network, Government Business Reviews and Tasmanian Cycle Tourism Strategy.

Mobile Radio Network

An amount of $15 million is provided in 2018-19 ($8 million in 2017‑18) for the funding of the whole‑of‑government Mobile Radio Network upgrade administered by the Department of Police, Fire and Emergency Management. The increase reflects the anticipated cash flows for the Project.

Government Business Structural Reviews

Funding of $1.1 million has been provided in 2018-19 to provide for costs associated with structural reviews relating to the Government business portfolio. This will include the continuation of the review of the regulated wholesale electricity pricing framework as part of the Government’s commitment to de link from the volatility in the Victorian market. Other reviews will include a capital structure review of Tasmanian Irrigation to ensure that the company remains on a sustainable basis while delivering the Government’s policy irrigation objections.

Tasmanian Cycling Tourism Strategy

As part of the Government’s T21 - Tasmanian Visitor Economy Strategy 2015-2020, a Cycle Tourism Strategy was developed. Funding of $3.1 million is available in 2018‑19 to support the Government’s Strategy.

4.4 Payment to Australian Taxation Office: GST Administration

Under the Intergovernmental Agreement, the states and territories meet the costs of the Australian Taxation Office in administering the goods and services tax. The states and territories share the GST administration costs on a per capita basis. Tasmania’s contribution to collection and compliance costs for 2018‑19 is estimated at $12.5 million ($13.3 million in 2017‑18).

4.5 Tasmanian Risk Management Fund

The estimated expenses of $66.2 million in 2018-19 ($69.4 million in 2017-18) represent anticipated claim and administration costs. Claim expenditure estimates for the Fund reflect the most recent actuarial advice. The variation in estimated expenses between 2017-18 and 2018-19 is mainly attributed to the re-projection over future years of costs associated with the June 2016 flood event and a major fire claim at the Peacock Centre. Some costs relating to these property claims are being recovered through the Industrial Special Risks Insurance Policy (purchased in the external insurance market to cover catastrophic risk for State‑owned assets) and the Natural Disaster Relief and Recovery Arrangements.

4.6 Fleet Management Services

All direct transactions associated with whole‑of‑government light vehicle fleet management activities are recorded in the Government Car Fleet Account within the Special Deposits and Trust Fund. Revenue in the Government Car Fleet Account is derived from the sale of vehicles and receipts from the Government’s Fleet Manager of lease, registration and insurance payments by agencies, net of the fleet management fee.

Estimated expenses for this Output in 2018-19 of $14 million ($14.9 million in 2017-18) include motor vehicle registration expenses of $1.1 million ($1.1 million in 2017‑18) and estimated depreciation on motor vehicles of $12.8 million ($13.8 million in 2017‑18).

4.7 Property Management Services

It is estimated that expenditure for Property Management Services will amount to $27.5 million in 2018-19 ($27.5 million in 2017-18), which primarily reflects depreciation of $3.8 million ($3.7 million in 2017-18), and rental and other occupancy costs totalling $23.6 million ($23.7 million in 2017-18).

The first stage of 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 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. Further strategic divestments of the State’s property portfolio proposed by the Government will be managed, by Treasury, on a case by case basis to improve the State’s social and economic outcomes.

4.8 Infrastructure Investment Project Planning

The Infrastructure Investment Project Planning Output provides funding of $2 million in 2018‑19 ($2 million in 2017-18) and subsequent years for the early planning stages of major infrastructure projects as part of the Structured Infrastructure Investment Review Process.


 

Special Capital Investment Funds

Within Finance‑General, some specifically identified funds are held for investment in economic and social infrastructure. This section provides a description and the balance of each Fund and the projects to be funded in 2018‑19 and over the Forward Estimates period.

Hospitals Capital Fund

The Hospitals Capital Fund was established in 2007‑08 to provide capital funding for hospitals across the State. In 2018‑19, a total amount of $1.1 million has been allocated for Mersey Hospital Upgrades.

Table 4.2:         Hospitals Capital Fund

 

Estimated

Total

Cost

2018-19

 

Budget

2019-20

Forward

Estimate

2020-21

Forward

Estimate

2021-22

Forward

Estimate

 

$'000

$'000

$'000

$'000

$'000

 

 

 

 

 

 

Balance Brought Forward

 

1 064

9

9

9

 

 

 

 

 

 

TOTAL SOURCE OF FUNDS

 

1 064

9

9

9

 

 

 

 

 

 

OUTFLOWS

 

 

 

 

 

Department of Health

 

 

 

 

 

Minister for Health

 

 

 

 

 

Mersey Hospital Upgrades

1 900

1 055

....

....

....

TOTAL OUTFLOWS

 

1 055

....

....

....

 

 

 

 

 

 

Closing Balance

)

9

9

9

9

 

 

 

 

 

 

 


 

Housing Fund

The Housing Fund was established in 2007‑08, with an allocation of $60 million for the purpose of increasing the supply of public housing. In 2018‑19, it is anticipated that $1.1 million will be expended from the Housing Fund on public housing projects.

Further detail on Housing Fund expenditure in 2018‑19 is provided in chapter 2 of this Budget Paper.

Table 4.3:         Housing Fund

 

Estimated

Total

Cost

2018-19

 

Budget

2019-20

Forward

Estimate

2020-21

Forward

Estimate

2021-22

Forward

Estimate

 

$'000

$'000

$'000

$'000

$'000

 

 

 

 

 

 

Balance Brought Forward

 

3 877

2 824

1 740

624

 

 

 

 

 

 

TOTAL SOURCE OF FUNDS

 

3 877

2 824

1 740

624

 

 

 

 

 

 

OUTFLOWS

 

 

 

 

 

Department of Communities Tasmania

 

 

 

 

 

Minister for Housing

 

 

 

 

 

Housing Fund

60 000

1 053

1 084

1 116

624

TOTAL OUTFLOWS

 

1 053

1 084

1 116

624

 

 

 

 

 

 

Closing Balance

)

2 824

1 740

624

….

 

 

 

 

 

 


 

Infrastructure Tasmania Fund

The Infrastructure Tasmania Fund was established in 2007‑08, with proceeds of $312.9 million from the divestment of government businesses, to fund major capital projects. During 2007‑08, $80 million was transferred from the ITF to the Water Infrastructure Fund administered by the Department of Primary Industries, Parks, Water and Environment and $25 million was transferred to the former Urban Renewal and Heritage Fund.

Details of projects to be funded from the ITF in 2018‑19 are provided in chapter 5 of this Budget Paper.

Table 4.4:         Infrastructure Tasmania Fund

 

Estimated

Total

Cost

2018-19

 

Budget

2019-20

Forward

Estimate

2020-21

Forward

Estimate

2021-22

Forward

Estimate

 

$'000

$'000

$'000

$'000

$'000

 

 

 

 

 

 

Balance Brought Forward

 

6 013

808

808

808

 

 

 

 

 

 

TOTAL SOURCE OF FUNDS

 

6 013

808

808

808

 

 

 

 

 

 

OUTFLOWS

 

 

 

 

 

Department of Health

 

 

 

 

 

Minister for Health

 

 

 

 

 

Health Infrastructure

67 410

5 205

....

....

....

TOTAL OUTFLOWS

 

5 205

....

....

....

 

 

 

 

 

 

Closing Balance1

)

808

808

808

808

 

 

 

 

 

 

Note:

1.    The allocation of the residual funds will be considered as part of future Budgets based upon funding required for the completion of the ITF projects.


 

Capital Investment Program

Table 4.5 provides financial information for Finance‑General’s Capital Investment Program. Further information on these key deliverables is provided in chapter 6 of The Budget Budget Paper No 1. 

Table 4.5:         Capital Investment Program

 

Estimated 

2018-19 

2019-20 

2020-21 

2021-22 

 

Total 

 

Forward 

Forward 

Forward 

 

Cost 

Budget 

Estimate 

Estimate 

Estimate 

 

$'000 

$'000 

$'000 

$'000 

$'000 

 

 

 

 

 

 

 

 

 

 

 

 

Existing Infrastructure Commitments

 

 

 

 

 

 

 

 

 

 

 

Treasurer

 

 

 

 

 

Digital Transformation - Project Unify

11 888 

7 798 

2 334 

.... 

.... 

Digital Transformation Priority Expenditure Program

Ongoing 

10 000 

10 000 

10 000 

10 000 

Launceston Government Office Accommodation

7 000 

7 000 

.... 

.... 

.... 

 

 

 

 

 

 

Total CIP Allocations

 

24 798 

12 334 

10 000 

10 000 

 

 

 

 

 

 


 

Detailed Budget Statements

Table 4.6:         Statement of Comprehensive Income - Administered

 

2017-18 

2018-19 

2019-20 

2020-21 

2021-22 

 

 

 

Forward 

Forward 

Forward 

 

Budget 

Budget 

Estimate 

Estimate 

Estimate 

 

$'000 

$'000 

$'000 

$'000 

$'000 

 

 

 

 

 

 

Revenue and other income from transactions

 

 

 

 

 

Appropriation revenue - recurrent1

599 360 

574 842 

611 764 

627 184 

642 562 

Appropriation revenue - works & services

27 718 

24 798 

12 334 

10 000 

10 000 

Grants2

3 259 251 

3 420 301 

3 361 722 

3 442 890 

3 600 413 

Taxation3

1 021 245 

1 103 100 

1 130 912 

1 152 909 

1 175 762 

Sales of goods and services4

90 362 

98 344 

103 252 

106 191 

109 549 

Interest

21 353 

19 645 

14 705 

13 654 

14 221 

Dividend, tax and rate equivalent income5

358 418 

409 749 

391 580 

369 874 

368 931 

Other revenue

109 723 

108 948 

106 765 

107 305 

106 430 

Total revenue and other income from transactions

5 487 430 

5 759 727 

5 733 034 

5 830 007 

6 027 868 

 

 

 

 

 

 

Expenses from transactions

 

 

 

 

 

Employee benefits

373 534 

364 715 

362 234 

358 789 

354 445 

Depreciation and amortisation

17 510 

16 969 

17 163 

17 100 

17 087 

Supplies and consumables

136 664 

117 753 

119 723 

119 238 

121 500 

Grants and subsidies6

527 540 

528 680 

402 263 

287 114 

316 554 

Borrowing costs

9 512 

9 484 

9 058 

9 186 

9 321 

Transfers to the Consolidated Fund

4 654 131 

4 965 819 

5 083 805 

5 036 521 

5 126 016 

Other expenses7

.... 

1 990 

4 016 

7 248 

11 746 

Total expenses from transactions

5 718 891 

6 005 410 

5 998 262 

5 835 196 

5 956 669 

 

 

 

 

 

 

Net result from transactions (net operating balance)

(231 461)

(245 683)

(265 228)

(5 189)

71 199 

 

 

 

 

 

 

Other economic flows included in net result

 

 

 

 

 

Net gain/(loss) on non-financial assets

2 291 

1 977 

2 459 

3 259 

3 619 

Movement in investments in GBEs and SOCs8

(104 198)

(93 726)

(35 640)

(6 507)

15 002 

Other gains/(losses) from other economic flows9

15 683 

1 511 

121 

200 

4 926 

Total other economic flows included in net result

(86 224)

(90 238)

(33 060)

(3 048)

23 547 

 

 

 

 

 

 

Net result

(317 685)

(335 921)

(298 288)

(8 237)

94 746 

 

 

 

 

 

 


 

Table 4.6:      Statement of Comprehensive Income - Administered (continued)

 

2017-18 

2018-19 

2019-20 

2020-21 

2021-22 

 

 

 

Forward 

Forward 

Forward 

 

Budget 

Budget 

Estimate 

Estimate 

Estimate 

 

$'000 

$'000 

$'000 

$'000 

$'000 

 

Other economic flows - other non-owner changes in equity

 

 

 

 

 

Other movements taken directly to equity

(2)

(2)

(2)

(2)

(2)

Total other economic flows - other non-owner changes in equity

(2)

(2)

(2)

(2)

(2)

 

 

 

 

 

 

Comprehensive result

(317 687)

(335 923)

(298 290)

(8 239)

94 744 

 

 

 

 

 

 

Notes:

1.    Explanations for significant variances and further information can be found in Table 4.7 Revenue from Appropriation by Output.

2.    Grants represents funding from the Australian Government in the form of GST receipts, National Partnership Payments and Specific Purpose Payments. Further information on Australian Government Funding can be found in chapter 5 of The Budget Budget Paper No 1.

3.    Further information regarding Taxation can be found in chapter 5 of The Budget Budget Paper No 1.

4.    The increase in Sales of goods and services primarily reflects the most recent actuarial estimates for the Tasmanian Risk Management Fund.

5.    Further information on Dividend, tax and rate equivalent income can be found in chapter 5 of The Budget Budget Paper No 1.

6.    The variation in Grants and subsidies reflects the timing of cash flows for programs funded by the Australian Government.

7.    This represents a provision for the indexation of additional agency expenditure that has been allocated since the finalisation of the Revised Estimates Report 2017-18 (including December Quarterly Report). For further information, see chapter 1 of this Budget Paper.

8.    Movement in investments in GBEs and SOCs represents the estimated change in the value of net assets of government businesses, excluding any equity contributions, between 1 July and 30 June each year.

9.    Other gains/(losses) from other economic flows represents the estimated change in deferred tax assets and liabilities held by government businesses.


 

Table 4.7:         Revenue from Appropriation by Output

 

2017-18 

2018-19 

2019-20 

2020-21 

2021-22 

 

 

 

Forward 

Forward 

Forward 

 

Budget 

Budget 

Estimate 

Estimate 

Estimate 

 

$'000 

$'000 

$'000 

$'000 

$'000 

 

 

 

 

 

 

Treasurer

 

 

 

 

 

 

 

 

 

 

 

Output Group 1 - Debt Servicing and Management

 

 

 

 

 

1.1 Debt Servicing

12 

37 

62 

35 

44 

1.2 Interest on Sundry Deposits

5 600 

6 273 

6 412 

7 727 

8 937 

 

5 612 

6 310 

6 474 

7 762 

8 981 

Output Group 2 - Employee Related Costs

 

 

 

 

 

2.1 Superannuation and Pensions

441 

350 

350 

350 

350 

2.3 Provision for 27th Pay

6 707 

6 707 

6 707 

6 707 

6 707 

 

7 148 

7 057 

7 057 

7 057 

7 057 

Output Group 3 - Government Businesses

 

 

 

 

 

3.1 Sustainable Timber Tasmania

2 000 

2 000 

2 000 

2 000 

2 000 

3.2 State Fire Commission

2 836 

2 836 

2 836 

2 836 

2 836 

3.4 Government Businesses1

23 504 

48 870 

61 805 

64 039 

62 023 

 

28 340 

53 706 

66 641 

68 875 

66 859 

Output Group 4 - Miscellaneous

 

 

 

 

 

4.3 Miscellaneous2

35 891 

23 829 

33 813 

35 346 

38 103 

4.4 Payment to Australian Tax Office: GST Administration

13 289 

12 524 

9 776 

9 727 

9 727 

4.7 Property Management Services3

11 394 

29 964 

8 732 

8 804 

8 891 

4.8 Infrastructure Investment Project Planning

2 000 

2 000 

2 000 

2 000 

2 000 

 

62 574 

68 317 

54 321 

55 877 

58 721 

 

 

 

 

 

 

Grants and Subsidies

185 276 

129 832 

152 460 

149 590 

151 536 

 

 

 

 

 

 

Capital Investment Program

27 718 

24 798 

12 334 

10 000 

10 000 

 

 

 

 

 

 

Finance-General

 

 

 

 

 

Total Recurrent Services

288 950 

265 222 

286 953 

289 161 

293 154 

Total Works and Services

27 718 

24 798 

12 334 

10 000 

10 000 

 

316 668 

290 020 

299 287 

299 161 

303 154 

 

 

 

 

 

 

 


 

Table 4.7:         Revenue from Appropriation by Output (continued)

 

2017-18 

2018-19 

2019-20 

2020-21 

2021-22 

 

 

 

Forward 

Forward 

Forward 

 

Budget 

Budget 

Estimate 

Estimate 

Estimate 

 

$'000 

$'000 

$'000 

$'000 

$'000 

 

 

 

 

 

 

Reserved by Law

 

 

 

 

 

Appropriation to the Treasurer's Reserve (Public Account Act 1986)

10 000 

10 000 

10 000 

10 000 

10 000 

Payments to Municipalities under the Local Government (Rates and Charges Remissions) Act 1991

17 355 

17 963 

18 593 

19 244 

19 244 

Payments under the Retirement Benefits (Parliamentary Superannuation) Regulations 2012

1 016 

1 002 

996 

991 

985 

Superannuation Benefits Payable under the Governor of Tasmania Act 1982

112 

112 

113 

113 

113 

Superannuation Benefits Payable under the Judges' Contributory Pensions Act 1968

2 096 

2 089 

2 105 

2 113 

2 115 

Superannuation Benefits Payable under the Public Sector Superannuation Reform Act 2016

279 564 

278 188 

292 736 

305 293 

316 682 

Superannuation Benefits Payable under the Solicitor-General Act 1983

267 

266 

268 

269 

269 

 

310 410 

309 620 

324 811 

338 023 

349 408 

 

 

 

 

 

 

Total Revenue from Appropriation

627 078 

599 640 

624 098 

637 184 

652 562 

 

 

 

 

 

 

Administered Revenue from Appropriation

627 078 

599 640 

624 098 

637 184 

652 562 

 

627 078 

599 640 

624 098 

637 184 

652 562 

 

Notes:

1.     The increase in 2018-19 for Government Businesses primarily reflects a contribution of $20 million to support TasWater’s 10 year capital program. The increase in 2019-20 primarily reflects the transfer of $15 million in rail infrastructure funding, which was previously held within the Department of State Growth.

2.     The decrease in 2018-19 for Miscellaneous primarily reflects the transfer of the Health Funding Provision of $20 million to the Department of Health. The increase from 2019-20 reflects a provision for the indexation of additional agency expenditure that has been allocated since the finalisation of the Revised Estimates Report 2017-18 (including December Quarterly Report). For further information see chapter 1 of this Budget Paper.

3.     The increase in 2018-19 for Property Management Services reflects funding for the purchase of 21 Kirksway Place as part of the Government’s public sector superannuation reforms.

 


 

Table 4.8:         Administered Expenses

 

2017-18 

2018-19 

2019-20 

2020-21 

2021-22 

 

 

 

Forward 

Forward 

Forward 

 

Budget 

Budget 

Estimate 

Estimate 

Estimate 

 

$'000 

$'000 

$'000 

$'000 

$'000 

 

 

 

 

 

 

Grants and Subsidies

 

 

 

 

 

Energy Retailer Concession

40 980 

43 583 

44 821 

46 049 

47 320 

First Home Builder Assistance1

13 440 

9 130 

4 710 

2 880 

2 880 

Launceston Flood Levee

1 000 

.... 

.... 

.... 

.... 

Local Government: Grants2

77 213 

45 099 

83 255 

83 916 

86 638 

Management of Australian Government Funding3

280 494 

347 248 

197 871 

85 124 

113 474 

Natural Disaster Relief Scheme4

12 731 

532 

532 

532 

532 

Other Grants and Subsidies5

26 030 

16 532 

2 034 

34 

34 

Payments under Local Government (Rates and Charges Remissions) Act 1991

17 355 

17 963 

18 593 

19 244 

19 244 

Payroll Tax Assistance6

4 215 

5 856 

7 806 

6 668 

4 408 

Tasmanian Forestry Agreement7

5 768 

.... 

.... 

.... 

.... 

TT-Line Pensioner Concession Subsidy

285 

297 

312 

327 

342 

Water and Sewerage Concessions and Subsidies

9 412 

8 835 

9 024 

9 218 

9 416 

 

488 923 

495 075 

368 958 

253 992 

284 288 

 

 

 

 

 

 

Transfer to the Consolidated Fund

4 654 131 

4 965 819 

5 083 805 

5 036 521 

5 126 016 

 

 

 

 

 

 

Other Administered Expenses

575 837 

544 516 

545 499 

544 683 

546 365 

 

 

 

 

 

 

Total Administered Expenses

5 718 891 

6 005 410 

5 998 262 

5 835 196 

5 956 669 

 

 

 

 

 

 

Notes:

1.    From 1 July 2018 to 30 June 2019, the Government has extended the availability of the First Home Owner Grant of $20 000. The estimated cash flows reflect the extension of the scheme, the winding down of previous schemes and a lower number of claims made against those schemes.

2.    The decrease in Local Government Grant expenditure primarily reflects an advance payment of $36.8 million relating to the 2018-19 entitlement which will be received and paid to councils in 2017-18.

3.    The variation in Management of Australian Government Funding is primarily related to the timing of the receipt of grant funding from the Australian Government and the payment of grants.

4.    The decrease in Natural Disaster Relief Scheme in 2018-19 is due to the finalisation of costs associated with the June 2016 flood event, February 2016 flood event and the January 2016 bushfire event.

5.    The decrease in Other Grants and Subsidies across the Budget and forward estimates primarily reflects the finalisation of support for Copper Mines of Tasmania in 2018-19 and cessation of the Energy Rebates for Business in 2019-20.

6.    The variation in Payroll Tax Assistance primarily reflects the extension of the payroll tax rebate scheme for apprentices and trainees in specific industries.

7.    The decrease from 2018-19 for the Tasmanian Forestry Agreement reflects the transfer of residual funds to the Department of State Growth.

 


 

Energy Retailer Concession

In accordance with the Electricity Supply Industry Act 1995, the Government has entered into a Community Service Obligation Agreement with Aurora Energy Pty Ltd to provide a range of concessions to eligible low income households and pensioners to assist them in meeting the costs of electricity provided by Aurora Energy Pty Ltd. The increase in the Energy Retailer Concession over the Budget and Forward Estimates period reflects expected increases in the number of households in receipt of the annual electricity concession and changes in electricity prices.

First Home Builder Assistance

From 1 July 2018 until 30 June 2019, the Government has extended the First Home Owner Grant of $20 000, which is expected to support ongoing demand for newly constructed homes by first home buyers.

Local Government Grants

Local Government Grants includes funding under the Australian Local Government (Financial Assistance) Act 1995, whereby the Australian Government provides funds to the states for on‑passing as general purpose grants to local government. This funding includes general purpose funding and identified local road funding.

This item also includes funding provided by the Government for the Accelerated Local Government Capital Program to support expanded investment in infrastructure by local government authorities, particularly in rural and regional areas, through the provision of targeted loan interest rebates.

This item also includes funding for the City Deal Tamar River Catchment Projects of $3.5 million over the next four years timed to coincide with the commencement of the State’s partnership with TasWater on 1 January 2019. This will be the first stage of delivering on the $10 million program of recommended catchment actions proposed by the Tamar Estuary Management Taskforce.

As part of the City Deal for Launceston, the TEMT has developed a River Health Action Plan with a total proposed investment of $95 million which included $85 million towards upgrades of the combined system and $10 million towards catchment actions with a recommendation they be cash‑flowed at $1 million per annum.

The Australian Government has committed $47.5 million towards the combined system projects with funding to begin in 2019‑20 over five years.

In the recently signed Memorandum of Understanding, the State Government and TasWater committed to working together to finalise the investment into the capital projects associated with the combined system as the timing of these projects needs to be in conjunction with the already proposed waste water treatment plant upgrades contained in TasWater’s 10 year plan.


 

Natural Disaster Relief Scheme

A Tasmanian Natural Disaster Relief Scheme, administered by the Department of Premier and Cabinet, is funded within Finance‑General. This Scheme provides for payments to local government authorities that face the eligible costs of restoring or replacing essential public assets, which have been damaged as a direct result of a disaster, to a pre‑disaster standard. Disasters for which relief is available are determined at the national level and include any one of, or a combination of, the following natural hazards: bushfire; earthquake; flood; storm; cyclone; storm surge; landslide; tsunami; meteorite strike or tornado.

A provision of $532 000 has been included in the 2018-19 Budget and forward estimates ($12.7 million in 2017-18 related to the June 2016 flood event, February 2016 flood event and the January 2016 bushfire event) for payments that may be made under the Natural Disaster Relief Scheme.

Other Grants and Subsidies

Funding of $18.6 million has been provided for Other Grants and Subsidies across the Budget and Forward Estimates period. This includes $3.5 million for Copper Mines of Tasmania in 2018-19 and $15 million over two years for Energy Rebates for Business. Further information is provided in chapter 12 of this Budget Paper.

Payments under Local Government (Rates and Charges Remissions) Act 1991

In accordance with the provisions of the Local Government (Rates and Charges Remissions) Act 1991, the pensioner rates remission scheme provides a remission of 30 per cent off council rates and charges, up to a defined maximum annual amount for eligible pensioners. The maximum remission is indexed annually to ensure that rate relief increases in line with inflation.

Payroll Tax Assistance

The purpose of this grant is to provide financial assistance to organisations, subject to various eligibility criteria being met. Some organisations receive assistance by way of grants equivalent to their payroll tax liability and are entitled to assistance when their payroll expenditure exceeds the threshold limit, currently $1.25 million per annum.

Payroll Tax Rebate (Trainees, Apprentices and Youth)

Funding of $20.7 million is provided over the Budget and Forward Estimates period for a targeted Payroll Tax Rebate for apprentices, trainees and youth employees.  This scheme provides a payroll tax rebate for two years from the date that apprentices and trainees are employed, and one year from the date that youth employees are employed, where they are employed between 1 July 2017 and 30 June 2019. 

The scheme will remain open to new apprentices and trainees employed in identified skill shortage areas between 1 July 2019 and 30 June 2021.  Expenditure is expected to peak in 2019-20, reflecting the expected peak in the number of eligible employees in the scheme at the one time.  Expenditure will gradually decrease from 2020-21 as apprentices and trainees complete their training and the period of the exemption for youth employees concludes.


 

Qantas Airways Limited

The Government is continuing its financial assistance package to Qantas, including payroll tax relief of $1 million per annum for nine years from 2015‑16, ending with a final reimbursement of $250 000 in 2024‑25. This payroll tax relief is part of a broader agreement with Qantas to secure existing Qantas Contact Centre positions and, through the consolidation of Australia‑wide operations, provides for increased employment at the Hobart Contact Centre.

TT-Line Pensioner Concession Subsidy

The Government provides a subsidy to TT-Line Company Pty Ltd for the additional cost of providing concession arrangements to pensioners following an extension by the Australian Government, from 1 April 1993, of eligibility for the Pensioner Concession Card.

Water and Sewerage Concessions and Subsidies

Under the Water and Sewerage Industry (Community Service Obligation) Act 2009, concessions are made available to eligible low income households and pensioners to assist them in meeting the cost of services provided by Tasmanian Water and Sewerage Pty Ltd. Payments are made to TasWater which passes the benefit on to eligible concession card holders as lower service charges.


 

Table 4.9:         Statement of Financial Position as at 30 June - Administered

 

2018 

2019 

2020 

2021 

2022 

 

 

 

Forward 

Forward 

Forward 

 

Budget 

Budget 

Estimate 

Estimate 

Estimate 

 

$'000 

$'000 

$'000 

$'000 

$'000 

 

 

 

 

 

 

Assets

 

 

 

 

 

Financial assets

 

 

 

 

 

Cash and deposits

1 094 397 

911 871 

797 920 

814 028 

840 784 

Investments

170 629 

202 575 

245 853 

250 089 

244 480 

Receivables

87 611 

96 474 

96 474 

96 474 

96 474 

Equity investments1

5 654 024 

5 418 334 

5 463 514 

5 524 707 

5 615 409 

Other financial assets2

797 243 

780 132 

802 932 

817 740 

835 277 

 

7 803 904 

7 409 386 

7 406 693 

7 503 038 

7 632 424 

 

 

 

 

 

 

Non-financial assets

 

 

 

 

 

Assets held for sale

912 

624 

624 

624 

624 

Property, plant and equipment3

138 662 

154 248 

151 389 

129 985 

129 220 

Infrastructure

17 218 

29 554 

41 888 

51 888 

61 888 

Other assets

1 080 

1 028 

1 028 

1 028 

1 028 

 

157 872 

185 454 

194 929 

183 525 

192 760 

 

 

 

 

 

 

Total assets

7 961 776 

7 594 840 

7 601 622 

7 686 563 

7 825 184 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

Payables

13 394 

16 198 

15 916 

15 708 

15 495 

Interest bearing liabilities4

1 152 117 

1 121 466 

1 354 042 

1 390 658 

1 393 705 

Superannuation5

6 263 508 

6 874 877 

6 940 743 

6 990 603 

7 024 734 

Other liabilities

256 984 

256 635 

263 547 

270 459 

277 371 

Total liabilities

7 686 003 

8 269 176 

8 574 248 

8 667 428 

8 711 305 

 

 

 

 

 

 

Net assets (liabilities)

275 773 

(674 336)

(972 626)

(980 865)

(886 121)

 

 

 

 

 

 

Equity

 

 

 

 

 

Reserves

22 384 

22 384 

22 384 

22 384 

22 384 

Accumulated funds

253 389 

(696 720)

(995 010)

(1 003 249)

(908 505)

Total equity

275 773 

(674 336)

(972 626)

(980 865)

(886 121)

 

 

 

 

 

 

Notes:

1.    Equity investments represents the Government’s equity interest in government businesses measured as the consolidated value of their net assets.

2.    The movement in Other financial assets represents the estimated movement of deferred tax assets and liabilities held by government businesses.

3.    The increase in Property, plant and equipment primarily reflects the purchase of 21 Kirksway Place as part of the Government’s public sector superannuation reforms.

4.    Interest bearing liabilities as at 30 June 2019 consists of Australian Government borrowings of $157.6 million incurred under various Commonwealth - State Housing Agreements, estimated end of year borrowings of $507.5 million through Tascorp and deposits of $456.3 million held on behalf of agencies in the Special Deposits and Trust Fund.

5.    The increase in the Superannuation liability reflects the most recent actuarial estimates of the liability. Further information on Superannuation is included in chapter 7 of The Budget Budget Paper No 1.

Table 4.10:       Statement of Cash Flows - Administered

 

2017-18 

2018-19 

2019-20 

2020-21 

2021-22 

 

 

 

Forward 

Forward 

Forward 

 

Budget 

Budget 

Estimate 

Estimate 

Estimate 

 

$'000 

$'000 

$'000 

$'000 

$'000 

 

 

 

 

 

 

Cash flows from operating activities

 

 

 

 

 

Cash inflows

 

 

 

 

 

Appropriation receipts - recurrent

599 360 

574 842 

611 764 

627 184 

642 562 

Appropriation receipts - capital

27 718 

24 798 

12 334 

10 000 

10 000 

Grants

3 259 251 

3 420 301 

3 361 722 

3 442 890 

3 600 413 

Taxation

1 022 300 

1 103 968 

1 131 151 

1 153 725 

1 176 317 

Sales of goods and services

90 362 

98 344 

103 252 

106 191 

109 549 

GST receipts

13 500 

13 500 

13 500 

13 500 

13 500 

Interest received

21 298 

19 638 

14 748 

13 605 

14 191 

Dividends received

372 420 

411 950 

375 277 

361 157 

362 453 

Other cash receipts

109 723 

108 948 

106 765 

107 305 

106 430 

Total cash inflows

5 515 932 

5 776 289 

5 730 513 

5 835 557 

6 035 415 

 

 

 

 

 

 

Cash outflows

 

 

 

 

 

Superannuation

(283 296)

(281 807)

(296 368)

(308 929)

(320 314)

Borrowing costs

(9 486)

(9 447)

(9 088)

(9 142)

(9 282)

GST payments

(13 500)

(13 500)

(13 500)

(13 500)

(13 500)

Grants and subsidies

(527 540)

(528 680)

(402 263)

(287 114)

(316 554)

Transfers to the Consolidated Fund

(4 654 131)

(4 965 819)

(5 083 805)

(5 036 521)

(5 126 016)

Supplies and consumables

(136 664)

(117 753)

(119 723)

(119 238)

(121 500)

Other cash payments

.... 

(1 990)

(4 016)

(7 248)

(11 746)

Total cash outflows

(5 624 617)

(5 918 996)

(5 928 763)

(5 781 692)

(5 918 912)

 

 

 

 

 

 

Net cash from (used by) operating activities

(108 685)

(142 707)

(198 250)

53 865 

116 503 

 

 

 

 

 

 

Cash flows from investing activities

 

 

 

 

 

Payments for acquisition of non-financial assets

(58 938)

(74 390)

(40 880)

(39 938)

(40 564)

Proceeds from the disposal of non-financial assets

16 251 

16 300 

16 700 

37 500 

17 860 

Equity injections and cash flows from restructuring

(54 779)

(94 650)

(80 820)

(67 700)

(75 700)

Net advances paid

8 642 

8 749 

8 512 

8 617 

8 754 

Net receipts/(payments) for investments

.... 

(40 504)

(51 789)

(12 852)

(3 144)

Net cash from (used by) investing activities

(88 824)

(184 495)

(148 277)

(74 373)

(92 794)

 

 

 

 

 

 


 

Table 4.10:       Statement of Cash Flows - Administered (continued)

 

2017-18 

2018-19 

2019-20 

2020-21 

2021-22 

 

 

 

Forward 

Forward 

Forward 

 

Budget 

Budget 

Estimate 

Estimate 

Estimate 

 

$'000 

$'000 

$'000 

$'000 

$'000 

 

 

 

 

 

 

Cash flows from financing activities

 

 

 

 

 

Net borrowings

124 970 

132 488 

232 576 

36 616 

3 047 

Net cash from (used by) financing activities

124 970 

132 488 

232 576 

36 616 

3 047 

 

 

 

 

 

 

Net increase (decrease) in cash and cash equivalents held

(72 539)

(194 714)

(113 951)

16 108 

26 756 

 

 

 

 

 

 

Cash and deposits at the beginning of the reporting period

1 166 936 

1 106 585 

911 871 

797 920 

814 028 

Cash and deposits at the end of the reporting period

1 094 397 

911 871 

797 920 

814 028 

840 784