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 Public Account to meet future liabilities of the Government, including a provision within the Tasmanian Risk Management Fund (Specific Purpose Account) 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

 

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 - Debt Servicing and Management

 

 

 

 

 

1.1 Debt Servicing1

62 

35 

10 023 

16 749 

23 525 

1.2 Interest on Sundry Deposits2

1 838 

2 089 

2 087 

2 751 

3 726 

1.3 Debt Management

7 384 

7 033 

6 677 

6 316 

5 948 

 

9 284 

9 157 

18 787 

25 816 

33 199 

Output Group 2 - Employee Related Costs

 

 

 

 

 

2.1 Superannuation and Pensions

364 915 

370 154 

367 754 

364 447 

360 704 

 

364 915 

370 154 

367 754 

364 447 

360 704 

Output Group 3 - Government Businesses

 

 

 

 

 

3.1 Sustainable Timber Tasmania

2 000 

2 000 

2 000 

2 000 

2 000 

3.2 State Fire Commission3

2 836 

12 836 

2 836 

2 836 

2 836 

3.4 Government Businesses4

1 870 

.... 

.... 

.... 

.... 

 

6 706 

14 836 

4 836 

4 836 

4 836 

Output Group 4 - Miscellaneous

 

 

 

 

 

4.2 Treasurer's Reserve

10 000 

10 000 

10 000 

10 000 

10 000 

4.3 Miscellaneous5

23 829 

12 843 

(62 154)

(123 556)

(123 556)

4.4 Payment to Australian Tax Office: GST Administration

12 524 

13 399 

12 541 

12 454 

12 454 

4.5 Tasmanian Risk Management Fund

66 165 

70 968 

68 817 

72 599 

76 374 

4.6 Fleet Management Services

13 960 

15 726 

15 766 

15 806 

15 845 

4.7 Property Management Services6

27 528 

37 539 

33 775 

34 374 

34 928 

4.8 Infrastructure Investment Project Planning

2 000 

2 000 

2 000 

2 000 

2 000 

 

156 006 

162 475 

80 745 

23 677 

28 045 

 

 

 

 

 

 

Grants and Subsidies

495 075 

460 067 

433 470 

376 208 

491 787 

 

 

 

 

 

 

Capital Investment Program7

292 

.... 

.... 

.... 

.... 

 

 

 

 

 

 

Special Capital Investment Funds8

7 313 

.... 

.... 

.... 

.... 

 

 

 

 

 

 

TOTAL

1 039 591 

1 016 689 

905 592 

794 984 

918 571 

 

 

 

 

 

 

Notes:

1.    The increase in Debt Servicing from 2020-21 reflects anticipated increases in State Government debt, including the end of year borrowing.

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

3.    The increase in State Fire Commission in 2019-20 reflects additional funding to meet the costs associated with the January 2019 Southern and Central Tasmania bushfire event.

4.    The decrease in the Government Businesses item from 2019-20 reflects the stronger financial performance of Tasracing Pty Ltd, with debt support no longer required for the business. The 2018-19 Budget also included grant funding of $500 000 for Metro Tasmania Pty Ltd for a preliminary study to inform the introduction of the new Derwent River ferry service.

5.    The decrease in Miscellaneous over the Budget and Forward Estimates period primarily reflects the inclusion of Budget Savings of $50 million in 2019-20, $100 million in 2020-21 and $150 million in 2021-22 and 2022-23. This decrease is partially offset by an increase in funding for the Mobile Radio Network and the provision of Health Demand funding of $30 million in 2019-20 and $10 million in 2020-21.

6.    The movement in Property Management Services across the Budget and Forward Estimates period primarily reflects revised cash flows associated with the Statutory Maintenance and Office Works Program, lease payments for CH Smith and Kirkwsay Place and the impact of the new Australian Accounting Standard AASB 16 Leases.

7.    The decrease in Capital Investment Program across the Budget and Forward Estimates period reflects the reclassification of depreciation to Property Management Services.

8.    The decrease in Special Capital Investment Funds as at 30 June 2019 reflects the transfer of residual funding to the Department of Health and the Department of Communities Tasmania. Funding is now reflected in those agencies new Agency Financial Management Accounts. There has been no change to projects or available funding as a result of this administrative change.

Output Group 1:    Debt Servicing and Management

1.1 Debt Servicing

This Output provides for the interest cost incurred in managing the State Government’s debt portfolio, including the end of year borrowing.

1.2 Interest on Sundry Deposits

This Output provides for the payment of interest on balances held in certain Specific Purpose Accounts and Agency Trust Accounts.

1.3 Debt Management

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

The expense of $7 million in 2019-20 ($7.4 million in 2018-19) represents interest payments to the Australia Government on debt incurred under various Commonwealth‑State Housing Agreements.

Principal repayments by Housing Tasmania of $8 million in 2019-20 ($7.9 million in 2018-19) 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 2019-20, superannuation and pension expenses are estimated to total $370.2 million, an anticipated increase of $5.3 million in comparison with the budgeted cost in 2018-19 of $364.9 million. The 2019-20 estimate includes service costs of $98.8 million ($93.7 million in 2018-19) and nominal interest of $271.4 million ($271.3 million in 2018-19). 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 2020 is $7 007.8 million (excluding the estimated Housing Tasmania pre‑July 1994 superannuation liability of $8.7 million as at 30 June 2020, the estimated Tasmanian Ambulance Services Superannuation Scheme liability of negative $5.4 million as at 30 June 2020 and the estimated State Fire Commission superannuation liability of negative $3.3 million as at 30 June 2020). This is an increase of $132.9 million from the 2018-19 estimate of the liability as at 30 June 2019 of $6 874.9 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 2019-20 Budget provides funding of $2 million in 2019‑20 ($2 million in 2018‑19) 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 $12.8 million has been made for the State Fire Commission in 2019-20 ($2.8 million in 2018‑19). Of this amount, $10 million has been provided to meet the costs of the January 2019 Southern and Central Tasmania bushfire event. A further 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. 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. Due to the uncertain nature of bushfire 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. Further information in relation to the State Fire Commission can be found in chapter 25 of this Budget Paper.

Output Group 4:    Miscellaneous

4.2 Treasurer’s Reserve

An amount of $10 million has been provided in the Treasurer’s Reserve in 2019-20 ($10 million in 2018‑19) to meet expenditure that could not reasonably be foreseen at the time of developing the 2019‑20 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 Tasmanian Government Radio Network, Government Business Structural Reviews, Health Demand and Tasmanian Cycle Tourism Strategy. The Budget Savings are also included under this Output.

Tasmanian Government Radio Network

An amount of $25 million is provided in 2019-20 ($15 million in 2018‑19) for the funding of the Tasmanian Government Radio Network upgrade administered by the Department of Police, Fire and Emergency Management. The increase reflects the anticipated cash flows for the Project.

Budget Savings

Since being first elected in 2014 the Government has made the responsible management of the State Budget a key priority. Whilst savings were initially required to assist in returning the Budget to a sustainable position; record additional funding has been allocated to improve Government services, develop infrastructure, support jobs and drive economic growth; challenges relating to changing revenue levels have been addressed and Net Operating Balance Surpluses have been delivered for three years in a row.

In the 2019-20 Budget, challenges relating to significant falls in some revenue areas and funding pressures have again arisen. When compared to 2018-19 Budget estimates, revenue from GST and conveyance duty has fallen by $535 million. Of this total, GST receipts have fallen by $280.3 million. Early forecasts indicated that conveyance duty may decrease by as much as $280 million. However, the impact of more up-to-date data, together with the inclusion of proposed increases to Foreign Investor Duty Surcharge rates, has resulted in a forecast reduction in conveyance duty of $254.8 million. The Government will, once again, act in a considered and responsible manner to meet these challenges. The 2019-20 Budget, therefore, includes the implementation of savings across the 2019‑20 Budget and Forward Estimates period which are necessary to ensure the sustainability of the Budget position and the future provision of services to the Tasmanian community. The level of savings required in 2019-20 is approximately 0.75 per cent of total expenditure with a further 0.75 per cent in 2020‑21 and 2021‑22. Budget savings over the 2019‑20 Budget and Forward Estimates period total $450 million. Achievement of these savings, together with expenditure constraint, will be essential to the delivery of forecast Budget outcomes.

These savings have initially been presented within Finance-General and the Government will work with agencies to identify the most appropriate approach to the implementation of these savings measures within individual agencies early in the new Budget year. The Government’s commitment to protect the frontline and minimise the impact on service delivery remains. The focus will be on expenditure such as consultants, travel and advertising, together with vacancy control and natural employee attrition as well as reviewing returns from all government businesses. A review of the State Service will also be undertaken to identify structural, legislative and cultural improvements that will transform current structures, services and practices to deliver a more efficient and effective public service.

An update on savings measures agreed with individual agencies will be released after the first quarter of the 2019-20 financial year and in the 2019-20 Revised Estimates Report.

Government Business Structural Reviews

Funding of $3.5 million has been provided in 2019-20 to provide for costs associated with structural reviews relating to the government business portfolio. This will include finalisation 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. Funding will also be used to assist with the assessment and development of the Project Marinus and Battery of the Nation projects.


 

Health Demand

Since the 2018-19 Budget, the Government has allocated significant additional funding to meet health and ambulance demand including $105 million in 2018-19 and an additional $50 million per annum from 2019‑20. The existing Forward Estimates for the Department of Health also include a material uplift in funding to support the implementation of 2018 election commitments. Further to the significant additional funding that has been provided directly to the Department of Health, the 2019-20 Budget includes a provision in Finance‑General for additional funding for health services of $30 million in 2019-20 and $10 million in 2020‑21.

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 $2.1 million is available in 2019-20 to support the Government’s Strategy.

4.4 Payment to Australian Taxation Office: GST Administration

Under the Intergovernmental Agreement on Federal Financial Relations, the states and territories compensate the Australian Taxation Office for the agreed costs incurred 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 2019-20 is estimated at $13.4 million ($12.5 million in 2018-19).

4.5 Tasmanian Risk Management Fund

The estimated expenses of $71 million in 2019-20 ($66.2 million in 2018-19) represent anticipated claim and administration costs for the Tasmanian Risk Management Fund. Claim expenditure estimates for the Fund reflect the most recent actuarial advice. The variation in estimated expenses between 2018-19 and 2019-20 is mainly attributed to an increase in workers’ compensation claim costs and costs associated with the May 2018 extreme weather event. Some costs relating to the May 2018 extreme weather event and June 2016 flood event will be recovered through 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 Public Account. 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 2019-20 of $15.7 million ($14 million in 2018-19) include motor vehicle registration expenses of $1.2 million ($1.1 million in 2018-19) and estimated depreciation on motor vehicles of $14.5 million ($12.8 million in 2018-19).


 

4.7 Property Management Services

It is estimated that expenditure for Property Management Services will amount to $37.5 million in 2019-20 ($27.5 million in 2018-19), which primarily reflects building depreciation of $17.4 million ($3.8 million in 2018‑19), and rental and other occupancy costs totalling $20.2 million ($23.6 million in 2018-19). The increase in depreciation primarily reflects the impacts of the new accounting standard for leases.

The Department of Treasury and Finance 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 2019-20 ($2 million in 2018-19) 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

The former Hospitals Capital Fund and Infrastructure Tasmania Fund will be transferred to the Department of Health in June 2019.

The former Housing Fund will be transferred to the Department of Communities Tasmania in June 2019.

This funding will now be held in Agency Financial Management Accounts. There has been no change to projects or available funding as a result of this administrative change.

Capital Investment Program

Table 4.2 provides financial information for Finance-General’s Capital Investment Program. More information on the Capital Investment Program is provided in chapter 6 of The Budget, Budget Paper No 1.

Table 4.2:         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 

 

 

 

 

 

 

Existing Infrastructure Commitments

 

 

 

 

 

 

 

 

 

 

 

Treasurer

 

 

 

 

 

Digital Transformation - Project Unify

11 888 

2 334 

.... 

.... 

.... 

Digital Transformation Priority Expenditure Program

  Ongoing 

10 000 

10 000 

10 000 

15 000 

 

 

 

 

 

 

Total CIP Allocations

 

12 334 

10 000 

10 000 

15 000 

 

 

 

 

 

 

 

Digital Transformation Priority Expenditure Program

Funding, over the 2019-20 Budget and Forward Estimates period, has been allocated under the Digital Transformation Priority Expenditure Program to a number of important projects. These include the Justice Connect Project within the Department of Justice; the Child and Youth Services System within the Department of Communities Tasmania; and the BIMS - PARS/PACMS Integration Project within the Department of Treasury and Finance. Project Unify, which is being undertaken by the Department of Police, Fire and Emergency Management, is also a major digital transformation project, however, it is being separately funded. Further digital transformation projects will continue to be considered for inclusion in the Program on an ongoing basis.

 


 

Detailed Budget Statements

Table 4.3:         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

 

 

 

 

 

Appropriation revenue - operating1

574 842 

646 905 

586 826 

573 273 

608 833 

Appropriation revenue - capital1

24 798 

12 334 

10 000 

10 000 

15 000 

Grants2

3 420 301 

3 476 237 

3 602 987 

3 729 116 

3 921 174 

Taxation3

1 103 100 

1 095 923 

1 127 317 

1 155 035 

1 182 409 

Sales of goods and services4

98 344 

109 408 

111 295 

114 475 

118 114 

Interest

19 645 

18 314 

17 726 

19 442 

25 488 

Dividend, tax and rate equivalent income5

409 749 

524 089 

375 384 

365 766 

337 096 

Other revenue

108 948 

108 664 

107 338 

106 430 

106 430 

Total revenue and other income from transactions

5 759 727 

5 991 874 

5 938 873 

6 073 537 

6 314 544 

 

 

 

 

 

 

Expenses from transactions

 

 

 

 

 

Employee benefits6

364 715 

399 954 

377 554 

364 247 

360 504 

Depreciation and amortisation7

16 969 

31 915 

32 685 

33 373 

34 003 

Supplies and consumables

117 753 

118 951 

108 965 

111 413 

115 362 

Grants and subsidies8

528 680 

502 887 

463 893 

406 622 

522 201 

Borrowing costs9

9 484 

12 982 

22 495 

29 329 

36 501 

Transfers to the Public Account

4 965 819 

5 275 624 

5 284 377 

5 296 177 

5 385 919 

Other expenses10

1 990 

(50 000)

(100 000)

(150 000)

(150 000)

Total expenses from transactions

6 005 410 

6 292 313 

6 189 969 

6 091 161 

6 304 490 

 

 

 

 

 

 

Net result from transactions (net operating balance)

(245 683)

(300 439)

(251 096)

(17 624)

10 054 

 

 

 

 

 

 

Other economic flows included in net result

 

 

 

 

 

Net gain/(loss) on non-financial assets

1 977 

2 640 

3 292 

3 140 

3 045 

Movement in investments in GBEs and SOCs11

(93 726)

(227 627)

(38 172)

(75 161)

(40 749)

Other gains/(losses) from other economic flows12

1 511 

910 

(4 589)

(7 076)

(3 894)

Total other economic flows included in net result

(90 238)

(224 077)

(39 469)

(79 097)

(41 598)

 

 

 

 

 

 

Net result

(335 921)

(524 516)

(290 565)

(96 721)

(31 544)


 

Table 4.3:         Statement of Comprehensive Income - Administered (continued)

 

2018-19 

2019-20 

2020-21 

2021-22 

2022-23 

 

 

 

Forward 

Forward 

Forward 

 

Budget 

Budget 

Estimate 

Estimate 

Estimate 

 

$'000 

$'000 

$'000 

$'000 

$'000 

 

 

 

 

 

 

Other economic flows - other non-owner changes in equity

 

 

 

 

 

Changes in physical asset revaluation reserve

.... 

.... 

1 572 

1 514 

1 426 

Other movements taken directly to equity

(2)

(210 788)

(2)

(2)

(2)

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

(2)

(210 788)

1 570 

1 512 

1 424 

 

 

 

 

 

 

Comprehensive result

(335 923)

(735 304)

(288 995)

(95 209)

(30 120)

 

 

 

 

 

 

Notes:

1.    Explanations for significant variances and further information can be found in Table 4.4 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 increase in Employee Benefits in 2019-20 reflects the provision of funding to support increases in the demand for health services.

7.    The increase in Depreciation and amortisation in 2019-20 primarily reflects the recognition of leases under AASB 16.

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

9.    The increase in Borrowing costs across the Budget and Forward Estimates period reflects the recognition of leases under AASB 16 and the estimated interest costs relating to State Debt.

10.  The decrease in Other expenses reflects the implementation of Budget savings across the Budget and Forward Estimates period.

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

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

 


 

Table 4.4:         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 - Debt Servicing and Management

 

 

 

 

 

1.1 Debt Servicing1

37 

55 

10 004 

16 719 

23 270 

1.2 Interest on Sundry Deposits

6 273 

7 910 

8 024 

9 996 

12 522 

1.3 Debt Management2

.... 

15 050 

14 799 

14 575 

14 321 

 

6 310 

23 015 

32 827 

41 290 

50 113 

Output Group 2 - Employee Related Costs

 

 

 

 

 

2.1 Superannuation and Pensions

350 

350 

350 

350 

350 

2.3 Provision for 27th Pay

6 707 

7 400 

7 400 

7 400 

7 400 

 

7 057 

7 750 

7 750 

7 750 

7 750 

Output Group 3 - Government Businesses

 

 

 

 

 

3.1 Sustainable Timber Tasmania

2 000 

2 000 

2 000 

2 000 

2 000 

3.2 State Fire Commission3

2 836 

12 836 

2 836 

2 836 

2 836 

3.4 Government Businesses4

48 870 

90 775 

94 800 

124 900 

138 200 

 

53 706 

105 611 

99 636 

129 736 

143 036 

Output Group 4 - Miscellaneous

 

 

 

 

 

4.2 Treasurer's Reserve5

.... 

10 000 

10 000 

10 000 

10 000 

4.3 Miscellaneous6

23 829 

13 433 

(60 954)

(121 676)

(120 966)

4.4 Payment to Australian Tax Office: GST Administration

12 524 

13 399 

12 541 

12 454 

12 454 

4.7 Property Management Services7

29 964 

13 962 

8 882 

8 968 

9 059 

4.8 Infrastructure Investment Project Planning

2 000 

2 000 

2 000 

2 000 

2 000 

 

68 317 

52 794 

(27 531)

(88 254)

(87 453)

 

 

 

 

 

 

Grants and Subsidies

129 832 

139 090 

152 424 

149 915 

153 855 

 

 

 

 

 

 

Capital Investment Program

24 798 

12 334 

10 000 

10 000 

15 000 

 

 

 

 

 

 

Finance-General

 

 

 

 

 

Total Operating Services Expenditure

265 222 

328 260 

265 106 

240 437 

267 301 

Total Capital Services Expenditure

24 798 

12 334 

10 000 

10 000 

15 000 

 

290 020 

340 594 

275 106 

250 437 

282 301 

 

 

 

 

 

 


 

Table 4.4:         Revenue from Appropriation by Output (continued)

 

2018-19 

2019-20 

2020-21 

2021-22 

2022-23 

 

 

 

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)5

10 000 

.... 

.... 

.... 

.... 

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

17 963 

18 432 

19 114 

19 821 

20 554 

Payments under the Public Sector Superannuation Reform (Parliamentary Superannuation) Regulations

1 002 

1 017 

1 009 

1 000 

991 

Superannuation Benefits Payable under the Governor of Tasmania Act 1982

112 

122 

122 

122 

122 

Superannuation Benefits Payable under the Judges' Contributory Pensions Act 1968

2 089 

2 086 

2 089 

2 086 

2 078 

Superannuation Benefits Payable under the Public Sector Superannuation Reform Act 2016

278 188 

296 698 

299 095 

309 517 

317 498 

Superannuation Benefits Payable under the Solicitor‑General Act 1983

266 

290 

291 

290 

289 

 

309 620 

318 645 

321 720 

332 836 

341 532 

 

 

 

 

 

 

Total Revenue from Appropriation

599 640 

659 239 

596 826 

583 273 

623 833 

 

 

 

 

 

 

Administered Revenue from Appropriation

599 640 

659 239 

596 826 

583 273 

623 833 

 

599 640 

659 239 

596 826 

583 273 

623 833 

 

 

 

 

 

 

Notes:

1.    The increase in Debt Servicing from 2020-21 reflects anticipated increases in State Government Debt, including the end of year borrowing.

2.    The increase in Debt Management reflects revised funding arrangements for the Commonwealth-State Housing Agreements as a result of the new Financial Management Act 2016. Under the previous Financial Management and Audit Act 1990, the Agreements were managed through accounts in the Special Deposits and Trust Fund. From 2019-20, the funding is appropriated under the Financial Management Act.

3.    The increase in State Fire Commission in 2019-20 reflects additional funding to meet the costs associated with the January 2019 Southern and Central Tasmania bushfire event.

4.    The increase over the Budget and Forward Estimates period for Government Businesses primarily reflects additional funding of $5 million in 2019-20, $15 million in 2020-21, $25 million in 2021-22 and $25 million in 2022-23 for Tasmanian Irrigation Pty Ltd for the development of the third tranche of irrigation schemes, additional funding of $30 million in 2021-22 and $38 million in 2022-23 for tranche three of the Tasmanian Freight Rail Revitalisation Program and additional equity funding of $30 million in 2020-21, $30 million in 2021‑22 and $40 million in 2022-23 provided to TasWater for the relocation of the wastewater treatment plant at Macquarie Point, the Launceston combined sewerage and wastewater system improvements and the Freycinet Peninsula wastewater system.

5.    The movement in the Treasurer’s Reserve reflects the reclassification of the Reserve from a Reserved by Law item to Output 4.2 as a result of the new Financial Management Act 2016.

6.    The decrease from 2020-21 reflects Budget Savings of $50 million in 2019-20, $100 million in 2020-21 and $150 million in 2021‑22 and 2022‑23.

7.    The decrease in 2019-20 for Property Management Services primarily reflects the finalisation of the purchase of 21 Kirksway Place in 2018-19 as part of the Government’s public sector superannuation reforms.

 


 

Table 4.5:         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 

 

 

 

 

 

 

Grants and Subsidies

 

 

 

 

 

Energy Retailer Concession

43 583 

44 899 

46 240 

47 630 

49 054 

First Home Builder Assistance1

9 130 

12 720 

8 880 

2 640 

2 640 

Local Government: Grants2

45 099 

44 317 

84 519 

87 727 

90 469 

Management of Australian Government Funding3

347 248 

302 517 

261 904 

206 444 

317 350 

Natural Disaster Relief Scheme4

532 

13 919 

532 

532 

532 

Other Grants and Subsidies5

16 532 

9 034 

34 

34 

34 

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

17 963 

18 432 

19 114 

19 821 

20 554 

Payroll Tax Assistance6

5 856 

4 817 

2 629 

1 552 

1 127 

TT-Line Pensioner Concession Subsidy

297 

312 

327 

342 

342 

Water and Sewerage Concessions and Subsidies

8 835 

9 100 

9 291 

9 486 

9 685 

 

495 075 

460 067 

433 470 

376 208 

491 787 

 

 

 

 

 

 

Transfer to the Public Account

4 965 819 

5 275 624 

5 284 377 

5 296 177 

5 385 919 

 

 

 

 

 

 

Other Administered Expenses

544 516 

556 622 

472 122 

418 776 

426 784 

 

 

 

 

 

 

Total Administered Expenses

6 005 410 

6 292 313 

6 189 969 

6 091 161 

6 304 490 

 

 

 

 

 

 

Notes:

1.    The Government has extended the availability of the First Home Owner Grant of $20 000 until 30 June 2020. The estimated cash flows reflect the extension of the scheme.

2.    The increase in Local Government Grants from 2020-21 is primarily related to cash flows with an advance payment of $39.4 million relating to the 2019‑20 Entitlement to be received from the Australian Government and paid to councils in 2018‑19.

3.    The variation in Management of Australian Government Funding is primarily related to cash flows for grant funding from the Australian Government.

4.    The increase in Natural Disaster Relief Scheme in 2019-20 reflects costs associated with the June 2016 flood event and the May 2018 Southern Tasmania extreme weather event.

5.    The decrease in Other Grants and Subsidies across the Budget and Forward Estimates period reflects the cessation of the Energy Rebates for Business from 2019-20.

6.    The decrease in Payroll Tax Assistance across the Budget and Forward Estimates period is primarily related to cash flows associated with the targeted Payroll Tax Rebate for apprentices, trainees and youth employees scheme.


 

Energy Retailer Concession

In accordance with the Electricity Supply Industry Act 1995, the Government has a Community Service Obligation Agreement with authorised electricity retailers to provide a range of concessions to eligible low income households and pensioners to assist them in meeting the costs of electricity. 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

The Government has extended the First Home Owner Grant of $20 000 until 30 June 2020, 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.

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 for 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.

Funding of $13.9 million has been included in the 2019-20 Budget to reflect costs associated with the June 2016 flood event and the May 2018 extreme weather event. A provision of $532 000 has been included in the Budget and Forward Estimates for payments that may be made under the Natural Disaster Relief Scheme.

Other Grants and Subsidies

Funding of $9 million has been included for Other Grants and Subsidies in the 2019-20 Budget. This includes $3.5 million for Copper Mines of Tasmania and $5.5 million 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 concession of 30 per cent off council rates and charges, up to a defined maximum annual amount for eligible pensioners. The maximum concession is indexed annually to ensure that rate relief increases in line with inflation.


 

Payroll Tax Rebate (Trainees, Apprentices and Youth)

The targeted Payroll Tax Rebate for apprentices, trainees and youth employees 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.

A targeted Payroll Tax Rebate will continue for new apprentices and trainees employed in specific industries between 1 July 2019 and 30 June 2021. Expenditure is expected to peak in 2018-19, reflecting the peak in the number of eligible employees in the scheme. Expenditure will gradually decrease from 2019-20 reflecting revised eligibility requirements and the gradual conclusion of the period of the exemption for eligible employees.

Qantas Airways Limited

The Government is continuing its financial assistance package to Qantas, including payroll tax reimbursement of up to $1 million per annum for 10 years from 2014‑15, ending with a final reimbursement of $250 000 in 2024‑25. Funding is limited to the sum of $1 million in any one financial year or the amount of payroll tax paid in that year, whichever is the lesser sum. 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 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 4.6:         Statement of Financial Position as at 30 June - Administered

 

2019 

2020 

2021 

2022 

2023 

 

 

 

Forward 

Forward 

Forward 

 

Budget 

Budget 

Estimate 

Estimate 

Estimate 

 

$'000 

$'000 

$'000 

$'000 

$'000 

 

 

 

 

 

 

Assets

 

 

 

 

 

Financial assets

 

 

 

 

 

Cash and deposits

911 871 

1 025 395 

993 166 

1 007 767 

1 014 226 

Investments

202 575 

248 648 

279 571 

287 786 

126 712 

Receivables

96 474 

99 290 

99 290 

99 290 

99 290 

Equity investments1

5 418 334 

5 491 493 

5 593 071 

5 742 760 

6 050 688 

Other financial assets2

780 132 

798 148 

819 327 

827 048 

837 709 

 

7 409 386 

7 662 974 

7 784 425 

7 964 651 

8 128 625 

 

 

 

 

 

 

Non-financial assets

 

 

 

 

 

Assets held for sale

624 

1 181 

1 181 

1 181 

1 181 

Property, plant and equipment3

154 248 

143 765 

122 640 

121 196 

119 539 

Infrastructure

29 554 

31 888 

41 888 

51 888 

66 888 

Other assets4

1 028 

154 611 

151 206 

144 073 

135 789 

 

185 454 

331 445 

316 915 

318 338 

323 397 

 

 

 

 

 

 

Total assets

7 594 840 

7 994 419 

8 101 340 

8 282 989 

8 452 022 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

Payables

16 198 

10 829 

10 599 

10 432 

10 514 

Interest bearing liabilities5

1 121 466 

1 779 415 

2 143 182 

2 362 804 

2 527 377 

Superannuation6

6 874 877 

7 007 790 

7 072 588 

7 123 670 

7 163 046 

Other liabilities7

256 635 

326 574 

294 155 

300 476 

295 598 

Total liabilities

8 269 176 

9 124 608 

9 520 524 

9 797 382 

9 996 535 

 

 

 

 

 

 

Net assets (liabilities)

(674 336)

(1 130 189)

(1 419 184)

(1 514 393)

(1 544 513)

 

 

 

 

 

 

Equity

 

 

 

 

 

Reserves

22 384 

27 010 

28 582 

30 096 

31 522 

Accumulated funds

(696 720)

(1 157 199)

(1 447 766)

(1 544 489)

(1 576 035)

Total equity

(674 336)

(1 130 189)

(1 419 184)

(1 514 393)

(1 544 513)

 

 

 

 

 

 

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 decrease in Property, Plant and Equipment in 2019-20 primarily reflects the divestment of Elizabeth Street Pier.

4.    The increase in Other assets across the Budget and Forward Estimates primarily reflects the recognition of leases under AASB 16.


 

5.    Interest bearing liabilities as at 30 June 2020 consists of Australian Government borrowings of $149.6 million incurred under various Commonwealth - State Housing Agreements, estimated end of year borrowings of $834.9 million through Tascorp, deposits of $640.6 million held on behalf of agencies in the Public Account and the recognition of leases under AASB 16 of $154.3 million.

6.    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.

7.    The increase in Other liabilities across the Budget and Forward Estimates primarily reflects the recognition of the contract revenue liability under AASB 15.


 

Table 4.7:         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

 

 

 

 

 

Appropriation receipts - operating

574 842 

646 905 

586 826 

573 273 

608 833 

Appropriation receipts - capital

24 798 

12 334 

10 000 

10 000 

15 000 

Grants

3 420 301 

3 341 607 

3 563 656 

3 728 525 

3 909 384 

Taxation

1 103 968 

1 095 954 

1 127 993 

1 155 272 

1 182 717 

Sales of goods and services

98 344 

109 408 

111 295 

114 475 

118 114 

GST receipts

13 500 

13 500 

13 500 

13 500 

13 500 

Interest received

19 638 

18 682 

16 798 

19 743 

24 669 

Dividends received

411 950 

511 539 

356 526 

357 089 

329 710 

Other cash receipts

108 948 

108 664 

107 338 

106 430 

106 430 

Total cash inflows

5 776 289 

5 858 593 

5 893 932 

6 078 307 

6 308 357 

 

 

 

 

 

 

Cash outflows

 

 

 

 

 

Employee benefits

.... 

(30 000)

(10 000)

.... 

.... 

Superannuation

(281 807)

(300 363)

(302 756)

(313 165)

(321 128)

Borrowing costs

(9 447)

(13 008)

(22 473)

(29 244)

(36 167)

GST payments

(13 500)

(13 500)

(13 500)

(13 500)

(13 500)

Grants and subsidies

(528 680)

(502 887)

(463 893)

(406 622)

(522 201)

Transfers to the Public Account

(4 965 819)

(5 275 624)

(5 284 377)

(5 296 177)

(5 385 919)

Supplies and consumables

(117 753)

(118 951)

(108 965)

(111 413)

(115 362)

Other cash payments

(1 990)

50 000 

100 000 

150 000 

150 000 

Total cash outflows

(5 918 996)

(6 204 333)

(6 105 964)

(6 020 121)

(6 244 277)

 

 

 

 

 

 

Net cash from (used by) operating activities

(142 707)

(345 740)

(212 032)

58 186 

64 080 

 

 

 

 

 

 

Cash flows from investing activities

 

 

 

 

 

Payments for acquisition of non-financial assets

(74 390)

(45 371)

(41 574)

(41 295)

(46 121)

Proceeds from the disposal of non-financial assets

16 300 

42 381 

37 533 

17 381 

17 286 

Equity injections and cash flows from restructuring

(94 650)

(111 395)

(139 750)

(224 850)

(348 677)

Net advances paid

8 749 

8 487 

8 592 

8 729 

8 843 

Net receipts/(payments) for investments

(40 504)

(54 927)

(39 514)

(16 943)

152 232 

Net cash from (used by) investing activities

(184 495)

(160 825)

(174 713)

(256 978)

(216 437)

 

 

 

 

 

 

 

 

Table 4.7:         Statement of Cash Flows - Administered (continued)

 

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 financing activities

 

 

 

 

 

Net borrowings

132 488 

336 642 

354 516 

213 393 

158 816 

Net cash from (used by) financing activities

132 488 

336 642 

354 516 

213 393 

158 816 

 

 

 

 

 

 

Net increase (decrease) in cash and cash equivalents held

(194 714)

(169 923)

(32 229)

14 601 

6 459 

 

 

 

 

 

 

Cash and deposits at the beginning of the reporting period

1 106 585 

1 195 318 

1 025 395 

993 166 

1 007 767 

Cash and deposits at the end of the reporting period

911 871 

1 025 395 

993 166 

1 007 767 

1 014 226