12    Department of Treasury and Finance

Agency Outline

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

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

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

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

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

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

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

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

·       supporting the Tasmanian Economic Regulator, the State Grants Commission, the Tasmanian Liquor and Gaming Commission, the Commissioner for Licensing, the Commissioner of State Revenue and the Superannuation Commission to carry out their statutory, regulatory and integrity functions.

This chapter provides the Department’s financial information for 2019‑20 and over the Forward Estimates period (2020-21 to 2022-23). Further information on the Department is provided at www.treasury.tas.gov.au.


 

Key Deliverables

Table 12.1 provides a summary of the Budget and Forward Estimates allocations for key deliverables within the Department.

Table 12.1:       Key Deliverables Statement

 

2019-20

 

Budget

2020-21

Forward

Estimate

2021-22

Forward

Estimate

2022-23

Forward

Estimate

 

$'000

$'000

$'000

$'000

 

 

 

 

 

Commonwealth Grants Commission 2020 Methodology Review

 330

....

....

....

Energy Markets Review

779

804

....

....

Energy on Farms1

2 000

2 000

....

....

Extension of Energy Rebate Scheme1

5 500

....

....

....

Financial Management Act Implementation

246

....

....

....

Future Gaming Market Implementation

605

608

....

....

Kirksway Place Relocation

300

7 100

600

....

Metro Tasmania - Derwent River Ferry Service1

500

500

500

....

Metro Tasmania - Single Ticket Scheme1

3 500

3 500

250

250

Tasmanian Irrigation Contribution - Tranche 31

5 000

15 000

25 000

25 000

TasRail Contribution - Tranche 2 and 31

29 900

....

44 950

52 950

TasRail Contribution - Parattah Rail Siding1

575

....

....

....

TasWater Contribution1

20 000

50 000

50 000

60 000

Treasury Building Divestment

351

365

377

....

 

 

 

 

 

Note:

1.    These Key Deliverables will be funded through Finance-General.

Commonwealth Grants Commission 2020 Methodology Review

The Goods and Services Tax is distributed to the states and territories on the basis of Horizontal Fiscal Equalisation, which is administered by the Commonwealth Grants Commission.

Every five years, the CGC conducts a comprehensive review of its methodology. Changes in the CGC’s methodology have the potential to reallocate millions of dollars of GST between jurisdictions. The opportunity to actively participate in the review is critically important for the State, with GST being the largest single revenue source for Tasmania, providing 38.6 per cent of Tasmania’s revenue in 2019-20. The 2020 Methodology Review is wide ranging and resource intensive. In order to minimise the risks to Tasmania from any changes to the distribution methodology, a dedicated project team has been established in Treasury to respond to the 2020 Methodology Review. The Methodology Review will be completed by February 2020.


 

Energy Markets Review

The Government is committed to delivering the lowest regulated electricity prices in the nation by 2022. As part of the Government’s overall strategy in regard to energy pricing, Treasury will be progressing the delinking of the Tasmanian regulated wholesale electricity pricing mechanism from volatility in the Victorian wholesale market. Treasury is also assisting with the development and assessment of the Project Marinus and Battery of the Nation Projects.

Energy on Farms

Equity contributions of $2 million have been allocated to Tasmanian Irrigation Pty Ltd in 2019-20 and 2020‑21 to construct mini and micro hydro-electric systems as part of the irrigation system network.

Extension of Energy Rebate Scheme

The Government is extending the Energy Rebate Scheme for large unregulated electricity customers into 2019‑20. The aim of the Scheme is to cushion customers from the impact of continuing high wholesale electricity prices in the National Electricity Market.

Financial Management Act Implementation

The Financial Management Act 2016 will commence on 1 July 2019. On that date, the FMA will replace the existing Financial Management and Audit Act 1990 and the Public Account Act 1986 and represents the final step in a major reform to Tasmania’s financial management framework. The implementation of the FMA has been a significant Treasury-led project across Government, involving engagement and education for a large and diverse range of stakeholders. Work delivered through the Project to date has focussed on the development of the operational framework to support the new legislation including new policies, processes, supporting documentation and system changes. During 2019-20, Treasury will undertake the first full year implementation of the new framework, monitor the implementation and finalise outstanding implementation issues, identify any further process or system improvements and continue to engage with stakeholders.

Future Gaming Market Implementation

Under the Government’s Future Gaming policy, the Deed between the State and the Federal Group to conduct casino operations, operate electronic gaming machines and conduct games of Keno in Tasmania will end on 30 June 2023. Post 2023, the Government policy is for electronic gaming machines in hotels and clubs to be operated under an individual venue licensing model, with the legislative amendments to provide for its policy to be ready for tabling by March 2020.

Treasury is responsible for:

·       providing advice to Government in relation to the implementation of its policy position, including issues relating to casino licence negotiations and individual venue licensing models; and

·       completing required legislative amendments to the Gaming Control Act 1993 to provide for the policy position.

A project team was established within Treasury in July 2018 and work to date has focussed on developing a financial model and regulatory aspects of the future gaming market and early stakeholder engagement.


 

Future objectives include targeted consultation on both the financial and regulatory issues, development and passage of legislation, including to cease the Deed, and design of the implementation plan for stage 2 of the Project, including a public tender process for the rights to operate the gaming machine monitoring network in hotels and clubs.

Kirksway Place Relocation

Related to the Treasury Building Divestment, this Project will facilitate the relocation of the Department of Treasury and Finance, including staff, assets and operations from the Treasury Building at 21 Murray Street, Hobart to 21 Kirksway Place, Battery Point.

The Project aims to:

·       move approximately 210 staff from the Treasury Building to 21 Kirksway Place;

·       undertake the redevelopment, improvement and fit out of approximately 3 300 square metres (spread over multiple floors) to provide for a modern and flexible work environment; and

·       provide for a vacant Treasury Building complex that is fit for divestment and repurposing.

Metro Tasmania - Derwent River Ferry Service

Equity contributions totalling $1.5 million over three years will be provided to Metro Tasmania Pty Ltd to support the establishment of a Derwent River ferry service.

Metro Tasmania - Single Ticket Scheme

Funding totalling $7.5 million over the Budget and Forward Estimates is being provided to assist Metro Tasmania Pty Ltd with the upgrades required to its systems and infrastructure, as part of the introduction of a common ticketing system for all Tasmanian public passenger transport services, allowing passengers to use a range of passenger transport systems on a single ticket.

Tasmanian Irrigation Contribution - Tranche 3

As part of the Government’s Tranche 3 Irrigation - taking agriculture to the next level election policy, $70 million has been allocated to a third tranche of irrigation schemes over the Budget and Forward Estimates period. A commitment has also been made by the Australian Government to allocate $100 million towards Tranche 3 as part of the National Water Infrastructure Development Fund.

TasRail Contribution - Tranche 2 and 3

Equity contributions of $29.9 million in 2019-20, $45 million in 2021-22 and $53 million in 2022-23 will be provided to Tasmanian Railway Pty Ltd for the rail revitalisation project across the State, including replacing life-expired assets, strengthening culverts and other upgrades to rail lines and bridges. The funding will support the second and third tranche of the Tasmanian Freight Rail Revitalisation Program, with the State receiving matching funding from the Australian Government.

TasRail Contribution - Parattah Rail Siding

An equity contribution of $575 000 will also be made in 2019-20 to assist TasRail to fund infrastructure works at the Parattah rail siding.

TasWater Contribution

Funding totalling $300 million will be provided to TasWater over 10 years from 2018-19, with an initial contribution of $20 million made in January 2019. This funding will allow TasWater to implement its accelerated infrastructure program, as well as providing funding for major infrastructure projects including the relocation of the Macquarie Point wastewater treatment plant, the Launceston combined sewerage and stormwater system improvements and the Freycinet Peninsula wastewater system. Funding of $180 million will be provided to TasWater over the 2019-20 Budget and Forward Estimates period. 

Treasury Building Divestment

As announced in the 2018-19 State Budget, the Government intends to seek proposals through a multi‑staged open expression of interest process for the divestment of the Treasury Building Complex located at 21 Murray Street, Hobart. The process to be undertaken will be similar to the divestment of parliament square. The Government is committed to ensuring appropriate and open community consultation occurs across the divestment process.

The divestment of the Treasury Building Complex is being progressed in a structured and considered manner to ensure that the eventual outcome of the site meets the expectations of the Government and the community. On this basis, it is currently intended to progress the divestment through a three stage process incorporating an initial Registration of Interest phase, Expression of Interest phase and, finally, a detailed Request for Tender phase. The initial ROI phase is expected to be released during June‑July 2019.

 


 

Output Information

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

Output Group 1 - Financial and Resource Management Services;

Output Group 2 - Economic and Fiscal Policy Advice;

Output Group 3 - Revenue, Superannuation and Regulatory Management Services; and

Output Group 4 - Community Assistance.

Table 12.2 provides an Output Group Expense Summary for the Department.


 

Table 12.2:       Output Group Expense Summary

 

2018-19 

2019-20 

2020-21 

2021-22 

2022-23 

 

 

 

Forward 

Forward 

Forward 

 

Budget 

Budget 

Estimate 

Estimate 

Estimate 

 

$'000 

$'000 

$'000 

$'000 

$'000 

 

 

 

 

 

 

Treasurer

 

 

 

 

 

 

 

 

 

 

 

Output Group 1 - Financial and Resource Management Services

 

 

 

 

 

1.1 Budget Development and Management1

2 787 

3 177 

3 012 

3 182 

3 296 

1.2 Financial Management and Accounting Services

3 899 

3 823 

3 910 

4 115 

4 240 

1.3 Shareholder Advice on Government Businesses2

3 085 

2 986 

3 089 

2 818 

2 913 

1.4 Government Property and Accommodation Services3

1 475 

1 911 

1 936 

2 057 

2 012 

1.5 Government Procurement Services

2 670 

2 805 

2 865 

2 937 

3 004 

 

13 916 

14 702 

14 812 

15 109 

15 465 

Output Group 2 - Economic and Fiscal Policy Advice

 

 

 

 

 

2.1 Economic Policy Advice

1 413 

1 356 

1 395 

1 468 

1 516 

2.2 Regulatory Policy

3 066 

2 895 

2 962 

3 117 

3 212 

2.3 Intergovernmental Financial Matters4

1 719 

1 473 

1 321 

1 399 

1 446 

 

6 198 

5 724 

5 678 

5 984 

6 174 

Output Group 3 - Revenue, Superannuation and Regulatory Management Services

 

 

 

 

 

3.1 Tax Administration and Revenue Collection

9 330 

9 341 

9 552 

9 952 

10 290 

3.2 Regulation and Administration of Liquor and Gaming

7 227 

7 427 

7 632 

7 403 

7 643 

3.3 Economic Regulation5

1 944 

2 083 

2 296 

2 128 

2 223 

3.4 Office of the Superannuation Commission

14 569 

14 194 

14 351 

14 589 

15 077 

 

33 070 

33 045 

33 831 

34 072 

35 233 

Output Group 4 - Community Assistance

 

 

 

 

 

4.1 Bass Strait Islands Community Service Obligation6

10 240 

.... 

.... 

.... 

.... 

4.2 Public Trustee Community Service Obligation

2 068 

2 115 

2 162 

2 210 

2 259 

4.3 Community Support Levy

3 983 

4 324 

4 212 

3 737 

4 226 

 

16 291 

6 439 

6 374 

5 947 

6 485 

 

 

 

 

 

 

TOTAL

69 475 

59 910 

60 695 

61 112 

63 357 

 

 

 

 

 

 

Notes:

1.    The increase in Budget Development and Management in 2019-20 is due to the allocation of resources to finalise the implementation of the Financial Management Act.

2.    The decrease in Shareholder Advice on Government Businesses in 2021-22 is due to the finalisation of the Energy Markets Review funding.

3.    The increase in Government Property and Accommodation Services from 2019-20 is due to the allocation of additional resources including the establishment of a dedicated project team for the Treasury Building Divestment Project.

4.    The decrease in Intergovernmental Financial Matters from 2019-20 is due to the finalisation of the Commonwealth Grants Commission 2020 Methodology Review Project.

5.    The variation in expenditure on Economic Regulation reflects the work program of the Tasmanian Economic Regulator. Water and sewerage pricing investigations are being undertaken in 2020-21.

6.    The cessation of funding for the Bass Strait Islands Community Service Obligation from 2019-20 is due to the transfer of financial responsibility for the obligation back to Hydro Tasmania from 1 July 2019.

Output Group 1:   Financial and Resource Management Services

1.1 Budget Development and Management

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

1.2 Financial Management and Accounting Services

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

1.3 Shareholder Advice on Government Businesses

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

1.4 Government Property and Accommodation Services

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

1.5 Government Procurement Services

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


 

Table 12.3:       Performance Information - Output Group 1

Performance Measure

Unit of

 Measure

2016‑17

Actual

2017‑18

Actual

2018‑19

Target

2019‑20

Target

 

 

 

 

 

 

Stakeholder satisfaction rating (expressed as a percentage)1

%

na

85

na

>90

Proportion of financial reports receiving an unqualified audit opinion2

%

100

 

100

 

100

 

100

Treasury‑managed property vacancy rate3

%

2.6

1.4

<1.5

<1.5

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

%

90

 

91

 

<90

 

<90

Proportion of financial reports published by the required date5

%

100

 

100

 

100

 

100

Variance between Budget estimate and actual GBE/SOC returns6

%

 

14.1

 

3.3

 

<5.0

 

<5.0

 

 

 

 

 

 

Notes:

1.    The satisfaction rating of the quality of Treasury's services is obtained from the results of Treasury's Stakeholder Survey, which is completed approximately every two years. Treasury’s Stakeholder Survey was most recently completed in August 2018 for 2017-18.

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

3.    The vacancy rate is the proportion of all owned and leased office space managed by Treasury that is currently vacant and available for occupation.

4.    The Tasmanian Risk Management Fund includes a self-insurance scheme for the workers’ compensation liabilities of participating agencies. An indication of the Government’s management of workers’ compensation claims can be obtained by comparing the workers’ compensation contributions paid by agencies to the Fund with the workers’ compensation premiums charged by private insurers. The Fund’s performance against the indicator in 2017-18 worsened from the previous year primarily due to an increase in the Fund’s contribution rate.

5.    The whole-of-government financial reports published in 2017‑18 were the Preliminary Outcomes Report 2016-17, Treasurer's Annual Financial Report 2016‑17, September Quarterly Report 2017‑18, December Quarterly Report 2017‑18 and the March Quarterly Report 2017-18.

6.    Returns from government businesses and state-owned companies comprise dividends, income tax equivalent payments, rate equivalent payments and guarantee fees. The positive variance to the Budget estimates is largely due to increased income tax equivalent payments.

 

 


7.     

Output Group 2:   Economic and Fiscal Policy Advice

2.1 Economic Policy Advice

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

2.2 Regulatory Policy

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

2.3 Intergovernmental Financial Matters

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

Table 12.4:       Performance Information - Output Group 2

Performance Measure

Unit of

 Measure

2016‑17

Actual

2017‑18

Actual

2018‑19

Target

2019‑20

Target

 

 

 

 

 

 

Stakeholder satisfaction rating (expressed as a percentage)1

%

 

na

 

92

 

na

 

>90

Variance between Budget estimate and actual taxation receipts2

%

 

4.5

 

2.8

 

<5.0

 

<5.0

Variance between Budget estimate and actual Australian Government payments3

%

 

20.2

 

3.5

 

<5.0

 

<5.0

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

 

% pts

0.7

0.8

<1.0

<1.0

Variance between Budget forecast and ABS estimate of employment growth4

 

% pts

0.3

 1.8

<1.0

<1.0

 

 

 

 

 

 

Notes:

1.    The satisfaction rating of the quality of Treasury's services is obtained from the results of Treasury's Stakeholder Survey, which is completed approximately every two years. Treasury’s Stakeholder Survey was most recently completed in August 2018 for 2017-18.

2.    The accuracy of the Department’s taxation receipt forecasts is determined by comparing the Budget with the actual end of year outcome. The information published in Treasury’s 2017-18 Annual Report was based on the preliminary outcome and has been updated to reflect the final audited outcome.

3.    The accuracy of the Department’s Australian Government payments is determined by comparing the State Budget estimate in the financial year with actual payment advices received from the Australian Government. The information published in Treasury's 2017-18 Annual Report was based on the preliminary outcome and has been updated to reflect the final audited outcome.

4.    The accuracy of Treasury’s Gross State Product and employment growth forecasts is determined by comparing the Budget forecasts with the most recent estimates of growth for the financial year published by the Australian Bureau of Statistics. Each November, the ABS revises its estimates of growth for past financial years, resulting in the 2016-17 Actual for variance to GSP and employment growth changing from 1.1 to 0.7, and from nil to 0.3 respectively. The information published in Treasury's 2017‑18 Annual Report was based on the preliminary outcome and has been updated to reflect the final outcome.

 


 

Output Group 3:   Revenue, Superannuation and Regulatory Management Services

3.1 Tax Administration and Revenue Collection

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

3.2 Regulation and Administration of Liquor and Gaming

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

3.3 Economic Regulation

This Output comprises provision of support to the Tasmanian Economic Regulator in the exercise of its statutory functions, which includes the regulation of some activities within the State’s electricity and gas supply industries, economic regulation of the State’s water and sewerage industry, undertaking pricing inquiries at the request of the Government and competitive neutrality investigations.

3.4 Office of the Superannuation Commission

This Output comprises provision of support to the Superannuation Commission in undertaking statutory functions under the Public Sector Superannuation Reform Act 2016; the Public Sector Superannuation Reform Regulations 2017; and the Public Sector Superannuation Reform (Parliamentary Superannuation) Regulations 2016. Under the public sector superannuation reforms, the operating costs of administering the five public sector defined benefit schemes are funded directly by appropriation to Treasury, rather than through operating expenses being charged directly against scheme assets.


 

Table 12.5:       Performance Information - Output Group 3

Performance Measure

Unit of

 Measure

2016‑17

Actual

2017‑18

Actual

2018‑19

Target

2019‑20

Target

 

 

 

 

 

 

Stakeholder satisfaction rating (expressed as a percentage)1

%

na

88

na

>90

Total overdue taxation debt as a percentage of total taxation revenue2

%

1.0

1.1

<0.8

<0.8

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

%

86

98

>80

>80

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

%

65

68

>80

>80

Revenue Branch operating expenses as a percentage of taxation revenue5

%

0.9

0.8

<1.5

<1.5

Percentage of liquor applications submitted to the Commissioner for Licensing within 40 days of advertising6

%

100

91

>95

>95

Number of member complaints received by the Superannuation Commission7

Number

5

50

<50

<50

 

 

 

 

 

 

Notes:

1.    The satisfaction rating of the quality of Treasury's services is obtained from the results of Treasury's Stakeholder Survey, which is completed approximately every two years. Treasury’s Stakeholder Survey was most recently completed in August 2018 for 2017-18.

2.    The State Revenue Office seeks to ensure that taxpayers are well informed of their obligations and that tax debt stress and overdue taxation debts are minimised. Accordingly, the target is for overdue taxation debt to be a very small percentage of total taxation revenue.

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

4.    Objections may be lodged against assessments issued to taxpayers or decisions of the Commissioner, Deputy Commissioner or a delegate of the Commissioner. Treasury seeks to ensure that the original assessments and decisions are accurate. The information published in Treasury’s 2017-18 Annual Report has been updated to reflect the final outcome.

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

6.    Treasury assisted the Commissioner for Licensing by receiving applications for licences, undertaking investigations and providing information to the Commissioner for determining whether to grant a liquor licence in accordance with the requirements of the Liquor Licensing Act.

7.    The Superannuation Commission has a structured and formal complaint mechanism, for which there is no charge to members (details are available at www.rbf.com.au).  External disputes of handling of complaints are addressed by the Tasmanian Ombudsman. As the Superannuation Commission was established on 1 April 2017, the number of complaints for 2016-17 is for the period 1 April to 30 June 2017.

 


 

Output Group 4:   Community Assistance

4.1 Bass Strait Islands Community Service Obligation

This Output comprises the payment of the Bass Strait Islands Community Service Obligation to Hydro Tasmania relating to the subsidised supply of electricity and pensioner concessions to electricity customers on King and Flinders Islands. The financial responsibility for this obligation will transfer back to Hydro Tasmania from 1 July 2019.

4.2 Public Trustee Community Service Obligation

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

4.3 Community Support Levy

This Output comprises the collection and disbursement of funds from the Community Support Levy.


 

Capital Investment Program

Table 12.6 provides financial information for the Department’s Capital Investment Program. More information on the Capital Investment Program is provided in chapter 6 of The Budget, Budget Paper No 1.

Table 12.6:       Capital Investment Program

 

Estimated 

2019-20 

2020-21 

2021-22 

2022-23 

 

Total 

 

Forward 

Forward 

Forward 

 

Cost 

Budget 

Estimate 

Estimate 

Estimate 

 

$'000 

$'000 

$'000 

$'000 

$'000 

 

 

 

 

 

 

Treasurer

 

 

 

 

 

Budget Information Management System Project

7 517 

1 302 

.... 

.... 

.... 

 

 

 

 

 

 

Total CIP Allocations

 

1 302 

.... 

.... 

.... 

 

 

 

 

 

 

 

Budget Information Management System Project

The Budget Information Management System is a business critical system which supports all Government agencies to develop and manage the State Budget. During 2018-19, project work focussed on embedding the core functionality of the new system and its associated business processes, and on delivering a range of high priority reporting features and system changes to support Budget management, the new requirements of the Financial Management Act and changes in accounting standards. To realise the full benefit of the system, improve usability and make further productivity gains, an additional set of system changes and enhancements will be delivered in 2019-20. These include an additional range of reports, the development of dashboard technology and new business intelligence functions that will support the production of Annual Budget Papers, Revised Estimates Reports and other statutory reports, and the provision of budget monitoring and development advice to the Treasurer.

The BIMS Project represented the first stage of a program to replace Treasury’s aging Budget Management and Financial Reporting System. A new project will now be undertaken to replace the remaining Public Account Reporting System and the Public Account Cash Management System modules of this system. Both systems, in their current format, are not sustainable, particularly given the aging technology base of the systems. The PARS and PACMS Project will deliver contemporary systems that are capable of supporting the reporting and cash management functions of Government and deliver other benefits associated with their integration with the new BIMS.

 


 

Detailed Budget Statements

Table 12.7:       Statement of Comprehensive Income

 

2018-19 

2019-20 

2020-21 

2021-22 

2022-23 

 

 

 

Forward 

Forward 

Forward 

 

Budget 

Budget 

Estimate 

Estimate 

Estimate 

 

$'000 

$'000 

$'000 

$'000 

$'000 

 

 

 

 

 

 

Revenue and other income from transactions

 

 

 

 

 

Appropriation revenue - operating1

58 547 

48 531 

49 157 

50 221 

51 068 

Appropriation revenue - capital2

1 500 

1 302 

.... 

.... 

.... 

Fees and fines

8 625 

8 659 

8 840 

8 683 

8 672 

Other revenue3

1 861 

1 408 

7 064 

1 981 

1 400 

Total revenue and other income from transactions

70 533 

59 900 

65 061 

60 885 

61 140 

 

 

 

 

 

 

Expenses from transactions

 

 

 

 

 

Employee benefits

34 983 

35 469 

36 181 

37 498 

38 476 

Depreciation and amortisation

1 132 

1 401 

1 549 

1 444 

2 155 

Supplies and consumables

9 408 

9 364 

9 252 

8 480 

8 993 

Grants and subsidies1

16 193 

5 831 

5 866 

5 839 

5 877 

Other expenses

7 759 

7 845 

7 847 

7 851 

7 856 

Total expenses from transactions

69 475 

59 910 

60 695 

61 112 

63 357 

 

 

 

 

 

 

Net result from transactions (net operating balance)

1 058 

(10)

4 366 

(227)

(2 217)

 

 

 

 

 

 

Net result

1 058 

(10)

4 366 

(227)

(2 217)

 

 

 

 

 

 

Comprehensive result

1 058 

(10)

4 366 

(227)

(2 217)

 

 

 

 

 

 

Notes:

1.    The decrease in Appropriation revenue - operating and Grants and subsidies from 2019-20 onwards is due to the transfer of financial responsibility for the Bass Strait Islands Community Service Obligation back to Hydro Tasmania from 1 July 2019.

2.    The decrease in Appropriation revenue - capital reflects the finalisation of the BIMS Project.

3.    The increase in Other revenue in 2020-21 reflects the funding of costs associated with the relocation of the Department of Treasury and Finance’s staff and operation from the Treasury Building to 21 Kirksway Place, Battery Point.


 

Table 12.8:       Statement of Comprehensive Income - Administered

 

2018-19 

2019-20 

2020-21 

2021-22 

2022-23 

 

 

 

Forward 

Forward 

Forward 

 

Budget 

Budget 

Estimate 

Estimate 

Estimate 

 

$'000 

$'000 

$'000 

$'000 

$'000 

 

 

 

 

 

 

Revenue and other income from transactions

 

 

 

 

 

Fees and fines

1 502 

1 582 

1 611 

1 640 

1 670 

Total revenue and other income from transactions

1 502 

1 582 

1 611 

1 640 

1 670 

 

 

 

 

 

 

Expenses from transactions

 

 

 

 

 

Transfers to the Public Account

1 502 

1 582 

1 611 

1 640 

1 670 

Total expenses from transactions

1 502 

1 582 

1 611 

1 640 

1 670 

 

 

 

 

 

 

Net result from transactions (net operating balance)

.... 

.... 

.... 

.... 

.... 

 

 

 

 

 

 

Net result

.... 

.... 

.... 

.... 

.... 

 

 

 

 

 

 

Comprehensive result

.... 

.... 

.... 

.... 

.... 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

Table 12.9:       Revenue from Appropriation by Output

 

2018-19 

2019-20 

2020-21 

2021-22 

2022-23 

 

 

 

Forward 

Forward 

Forward 

 

Budget 

Budget 

Estimate 

Estimate 

Estimate 

 

$'000 

$'000 

$'000 

$'000 

$'000 

Treasurer

 

 

 

 

 

 

 

 

 

 

 

Output Group 1 - Financial and Resource Management Services

 

 

 

 

 

1.1 Budget Development and Management

2 585 

2 938 

2 767 

2 939 

2 992 

1.2 Financial Management and Accounting Services

3 649 

3 546 

3 631 

3 840 

3 891 

1.3 Shareholder Advice on Government Businesses

2 874 

2 862 

2 965 

2 700 

2 738 

1.4 Government Property and Accommodation Services

1 058 

1 694 

1 768 

1 889 

1 810 

 

10 166 

11 040 

11 131 

11 368 

11 431 

Output Group 2 - Economic and Fiscal Policy Advice

 

 

 

 

 

2.1 Economic Policy Advice

1 362 

1 298 

1 338 

1 413 

1 435 

2.2 Regulatory Policy

2 944 

2 744 

2 827 

2 984 

3 025 

2.3 Intergovernmental Financial Matters

1 671 

1 434 

1 267 

1 348 

1 368 

 

5 977 

5 476 

5 432 

5 745 

5 828 

Output Group 3 - Revenue, Superannuation and Regulatory Management Services

 

 

 

 

 

3.1 Tax Administration and Revenue Collection

9 006 

9 009 

9 207 

9 632 

9 790 

3.2 Regulation and Administration of Liquor and Gaming

6 680 

6 834 

7 027 

6 797 

6 900 

3.4 Office of the Superannuation Commission

14 410 

14 057 

14 198 

14 469 

14 860 

 

30 096 

29 900 

30 432 

30 898 

31 550 

Output Group 4 - Community Assistance

 

 

 

 

 

4.1 Bass Strait Islands Community Service Obligation1

10 240 

.... 

.... 

.... 

.... 

4.2 Public Trustee Community Service Obligation

2 068 

2 115 

2 162 

2 210 

2 259 

 

12 308 

2 115 

2 162 

2 210 

2 259 

 

 

 

 

 

 

Capital Investment Program

1 500 

1 302 

.... 

.... 

.... 

 

 

 

 

 

 

Department of Treasury and Finance

 

 

 

 

 

Total Operating Services Expenditure

58 547 

48 531 

49 157 

50 221 

51 068 

Total Capital Services Expenditure

1 500 

1 302 

.... 

.... 

.... 

 

60 047 

49 833 

49 157 

50 221 

51 068 

 

 

 

 

 

 

Total Revenue from Appropriation

60 047 

49 833 

49 157 

50 221 

51 068 

 

 

 

 

 

 

Controlled Revenue from Appropriation

60 047 

49 833 

49 157 

50 221 

51 068 

 

60 047 

49 833 

49 157 

50 221 

51 068 

 

 

 

 

 

 

Note:

1.    The cessation of Bass Strait Islands Community Service Obligation from 2019-20 is due to the transfer of financial responsibility for the obligation back to Hydro Tasmania from 1 July 2019.


 

Table 12.10:      Administered Revenue

 

2018-19 

2019-20 

2020-21 

2021-22 

2022-23 

 

 

 

Forward 

Forward 

Forward 

 

Budget 

Budget 

Estimate 

Estimate 

Estimate 

 

$'000 

$'000 

$'000 

$'000 

$'000 

 

 

 

 

 

 

Revenue Collected on Behalf of the Public Account

 

 

 

 

 

Other Regulatory Fees

1 502 

1 582 

1 611 

1 640 

1 670 

 

1 502 

1 582 

1 611 

1 640 

1 670 

 

 

 

 

 

 

Total Administered Revenue

1 502 

1 582 

1 611 

1 640 

1 670 

 

 

 

 

 

 

 

 

 

 

 

 

Table 12.11:      Administered Expenses

 

2018-19 

2019-20 

2020-21 

2021-22 

2022-23 

 

 

 

Forward 

Forward 

Forward 

 

Budget 

Budget 

Estimate 

Estimate 

Estimate 

 

$'000 

$'000 

$'000 

$'000 

$'000 

 

 

 

 

 

 

Transfer to the Public Account

1 502 

1 582 

1 611 

1 640 

1 670 

 

 

 

 

 

 

Total Administered Expenses

1 502 

1 582 

1 611 

1 640 

1 670 

 

 

 

 

 

 


 

Table 12.12:      Statement of Financial Position as at 30 June

 

2019 

2020 

2021 

2022 

2023 

 

 

 

Forward 

Forward 

Forward 

 

Budget 

Budget 

Estimate 

Estimate 

Estimate 

 

$'000 

$'000 

$'000 

$'000 

$'000 

 

 

 

 

 

 

Assets

 

 

 

 

 

Financial assets

 

 

 

 

 

Cash and deposits

6 572 

7 067 

5 679 

6 109 

5 876 

Receivables

319 

318 

320 

323 

326 

Other financial assets

679 

774 

790 

806 

822 

 

7 570 

8 159 

6 789 

7 238 

7 024 

 

 

 

 

 

 

Non-financial assets

 

 

 

 

 

Property, plant and equipment1

1 373 

996 

8 044 

8 608 

7 779 

Heritage and cultural assets

84 

84 

84 

84 

84 

Intangibles

10 061 

9 160 

8 244 

7 420 

6 678 

Other assets2

649 

1 621 

1 373 

1 125 

1 132 

 

12 167 

11 861 

17 745 

17 237 

15 673 

 

 

 

 

 

 

Total assets

19 737 

20 020 

24 534 

24 475 

22 697 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

Payables

599 

661 

667 

674 

681 

Interest bearing liabilities2

.... 

922 

667 

412 

412 

Employee benefits

7 757 

8 592 

8 989 

9 404 

9 835 

Other liabilities

207 

512 

512 

513 

514 

Total liabilities

8 563 

10 687 

10 835 

11 003 

11 442 

 

 

 

 

 

 

Net assets (liabilities)

11 174 

9 333 

13 699 

13 472 

11 255 

 

 

 

 

 

 

Equity

 

 

 

 

 

Accumulated funds

11 174 

9 333 

13 699 

13 472 

11 255 

Total equity

11 174 

9 333 

13 699 

13 472 

11 255 

 

 

 

 

 

 

Notes:

1.    The increase in Property, plant and equipment in 2021 reflects leasehold improvements associated with the redevelopment of office accommodation at 21 Kirksway Place, Battery Point.

2.    The increase in Other assets and Interest bearing liabilities in 2020 is due to the incorporation of the right-of-use asset and associated liability for property, plant and equipment leased by the Department, as required for reporting periods due to the new Australian Accounting Standard AASB 16 Leases.


 

Table 12.13:      Statement of Cash Flows

 

2018-19 

2019-20 

2020-21 

2021-22 

2022-23 

 

 

 

Forward 

Forward 

Forward 

 

Budget 

Budget 

Estimate 

Estimate 

Estimate 

 

$'000 

$'000 

$'000 

$'000 

$'000 

 

 

 

 

 

 

Cash flows from operating activities

 

 

 

 

 

Cash inflows

 

 

 

 

 

Appropriation receipts - operating1

58 547 

48 531 

49 157 

50 221 

51 068 

Appropriation receipts – capital2

1 500 

1 302 

.... 

.... 

.... 

Fees and fines

8 613 

8 642 

8 822 

8 664 

8 653 

GST receipts

1 600 

1 600 

1 600 

1 600 

1 600 

Other cash receipts3

1 861 

1 408 

7 064 

1 981 

1 400 

Total cash inflows

72 121 

61 483 

66 643 

62 466 

62 721 

 

 

 

 

 

 

Cash outflows

 

 

 

 

 

Employee benefits

(30 786)

(30 876)

(31 581)

(32 599)

(33 342)

Superannuation

(3 968)

(4 080)

(4 201)

(4 482)

(4 701)

GST payments

(1 600)

(1 600)

(1 600)

(1 600)

(1 600)

Grants and subsidies1

(16 193)

(5 831)

(5 866)

(5 839)

(5 877)

Supplies and consumables

(9 407)

(9 363)

(9 252)

(8 482)

(8 995)

Other cash payments

(7 759)

(7 845)

(7 849)

(7 852)

(7 857)

Total cash outflows

(69 713)

(59 595)

(60 349)

(60 854)

(62 372)

 

 

 

 

 

 

Net cash from (used by) operating activities

2 408 

1 888 

6 294 

1 612 

349 

 

 

 

 

 

 

Cash flows from investing activities

 

 

 

 

 

Payments for acquisition of non-financial assets

(1 620)

(1 723)

(7 221)

(721)

(121)

Net cash from (used by) investing activities

(1 620)

(1 723)

(7 221)

(721)

(121)

 

 

 

 

 

 

Cash flows from financing activities

 

 

 

 

 

Net borrowings

.... 

(461)

(461)

(461)

(461)

Net cash from (used by) financing activities

.... 

(461)

(461)

(461)

(461)

 

 

 

 

 

 

Net increase (decrease) in cash and cash equivalents held

788 

(296)

(1 388)

430 

(233)

 

 

 

 

 

 

Cash and deposits at the beginning of the reporting period

5 784 

7 363 

7 067 

5 679 

6 109 

Cash and deposits at the end of the reporting period

6 572 

7 067 

5 679 

6 109 

5 876 

 

 

 

 

 

 

Notes:

1.    The decrease in Appropriation receipts - operating and Grants and subsidies from 2019-20 onwards is due to the transfer of financial responsibility for the Bass Strait Islands Community Service Obligation back to Hydro Tasmania from 1 July 2019.

2.    The decrease in Appropriation receipts - capital reflects the finalisation of the BIMS Project.

3.    The increase in Other cash receipts in 2020-21 reflects the funding of costs associated with the relocation of the Department of Treasury and Finance’s staff and operation from the Treasury Building to 21 Kirksway Place, Battery Point.


 

Table 12.14:      Statement of Cash Flows - Administered

 

2018-19 

2019-20 

2020-21 

2021-22 

2022-23 

 

 

 

Forward 

Forward 

Forward 

 

Budget 

Budget 

Estimate 

Estimate 

Estimate 

 

$'000 

$'000 

$'000 

$'000 

$'000 

 

 

 

 

 

 

Cash flows from operating activities

 

 

 

 

 

Cash inflows

 

 

 

 

 

Fees and fines

1 502 

1 582 

1 611 

1 640 

1 670 

Total cash inflows

1 502 

1 582 

1 611 

1 640 

1 670 

 

 

 

 

 

 

Cash outflows

 

 

 

 

 

Transfers to the Public Account

(1 502)

(1 582)

(1 611)

(1 640)

(1 670)

Total cash outflows

(1 502)

(1 582)

(1 611)

(1 640)

(1 670)

 

 

 

 

 

 

Net increase (decrease) in cash and cash equivalents held

.... 

.... 

.... 

.... 

.... 

 

 

 

 

 

 

Cash and deposits at the beginning of the reporting period

.... 

.... 

.... 

.... 

.... 

Cash and deposits at the end of the reporting period

.... 

.... 

.... 

.... 

....