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.
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.
|
|
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 |
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|
|
|
|
|
|
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.
This Output provides for the interest cost incurred in managing the State Government’s debt portfolio, including the end of year borrowing.
This Output provides for the payment of interest on balances held in certain Specific Purpose Accounts and Agency Trust Accounts.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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).
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.
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).
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.
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.
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.
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.
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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 |
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|
|
|
|
|
|
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|
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 |
|
|
|
|
|
|
|
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.
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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.
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|
2018-19 |
2019-20 |
2020-21 |
2021-22 |
2022-23 |
|
|
|
|
Forward |
Forward |
Forward |
|
|
Budget |
Budget |
Estimate |
Estimate |
Estimate |
|
|
$'000 |
$'000 |
$'000 |
$'000 |
$'000 |
|
|
|
|
|
|
|
|
Treasurer |
|
|
|
|
|
|
|
|
|
|
|
|
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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 |
|
|
|
|
|
|
|
|
|
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.
|
|
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.
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.
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 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.
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.
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.
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.
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.
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.
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.
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.
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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.
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