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 Governmentís financial assets and liabilities, meeting the Governmentís pension and other superannuation commitments, administration of the Tasmanian Risk Management Fund, management of the Governmentís 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 major 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 workersí compensation and other insurable risks in respect of inner‑Budget agencies. Information on the Governmentís 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;

       Output Group 4 ‑ Miscellaneous;

       Output Group 89 - Public Building Maintenance Program; and

       Output Group 90 - COVID‑19 Response and Recovery.

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

COVID-19 Response and Recovery Measures

To enable the presentation of this important information, new Output Groups have been established. Output Group 89 - Public Building Maintenance Program, reflects expenditure under the Governmentís Public Building Maintenance Program and Output Group 90 - COVID-19 Response and Recovery, reflects expenditure allocated to specific Government COVID-19 response and recovery initiatives. Further information in relation to these outputs is provided in chapter 12 of this Budget Paper.

COVID‑19 Provision

Funding of $145 million, in 2020‑21, has been provided to establish an unallocated funding provision to meet currently unforeseen or uncertain COVID‑19 related costs (Output 90.3). This provision replaces that provided for within the Supply Act (No 1) 2020. Known COVID‑19 related costs in 2020‑21 will be directly appropriated to relevant agencies through the 2020 Appropriation Acts.

Many aspects of the future impact of the COVID‑19 pandemic remain uncertain at the time of the finalisation of the 2020‑21 Budget. This includes the direct impact on the community of the spread of the virus, the impact on the economy, the level of demand for existing Government programs and commitments and the need for new economic and social measures that were not able to be accurately forecast or known at the time. The early establishment of the central provisions, in 2019‑20 and in 2020‑21, were important factors in enabling the Government to act quickly and appropriately to support the Tasmanian community. Given this ongoing high level of uncertainty and the success of this approach, it is considered important that a further provision be established in 2020‑21 to provide the capacity for similar support to be provided.

The funding allocated to the provision will be available to support currently uncertain costs in relation to the outcomes of the work of the Premierís Economic and Social Recovery Advisory Council. Furthermore, following the finalisation of 2020-21 Budget information, the Government will continue to make decisions in relation to the implementation of measures to address the impact of the COVID-19 pandemic. Information in relation to new decisions will be provided in other announcements and in the 2020-21 Budget Speech. Where required, additional costs associated with these new measures will be funded from the COVID-19 Provision.

 


 

Table 4.1:†††††††† Output Group Expense Summary

 

2019‑20 

2020‑21 

2021‑22 

2022‑23 

2023‑24 

 

 

 

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

35 

21 365 

45 665 

55 438 

63 817 

1.2 Interest on Sundry Deposits2

2 089 

563 

616 

792 

989 

1.3 Debt Management3

7 033 

.... 

.... 

.... 

.... 

 

9 157 

21 928 

46 281 

56 230 

64 806 

Output Group 3 - Government Businesses

 

 

 

 

 

3.1 Sustainable Timber Tasmania

2 000 

2 000 

2 000 

2 000 

2 000 

3.2 State Fire Commission

12 836 

12 596 

12 596 

12 596 

12 596 

3.4 Government Businesses4

.... 

2 574 

4 698 

4 903 

5 090 

 

14 836 

17 170 

19 294 

19 499 

19 686 

Output Group 4 - Miscellaneous

 

 

 

 

 

4.2 Treasurer's Reserve5

10 000 

80 000 

10 000 

10 000 

10 000 

4.3 Miscellaneous6

(13 309)

4 394 

545 

474 

474 

4.4 Payment to Australian Tax Office: GST Administration

13 399 

12 803 

12 805 

12 808 

12 808 

4.9 Ex‑Gratia Assistance7

610 

6 200 

300 

300 

300 

 

10 700 

103 397 

23 650 

23 582 

23 582 

Output Group 90 - COVID-19 Response and Recovery

 

 

 

 

 

90.2 Local Government $200 million Interest Free Loans8

.... 

3 400 

6 000 

.... 

.... 

90.3 COVID-19 Provision9

.... 

145 000 

.... 

.... 

.... 

90.4 Small Business Electricity Waiver10

.... 

500 

.... 

.... 

.... 

90.8 Tasmanian HomeBuilder Grant11

.... 

10 000 

10 000 

.... 

.... 

 

.... 

158 900 

16 000 

.... 

.... 

 

 

 

 

 

 

Grants and Subsidies12

460 067 

604 444 

533 887 

648 007 

746 457 

 

 

 

 

 

 

Minister for Finance

 

 

 

 

 

 

 

 

 

 

 

Output Group 2 - Employee Related Costs

 

 

 

 

 

2.1 Superannuation and Pensions13

370 154 

304 502 

244 432 

230 747 

217 661 

 

370 154 

304 502 

244 432 

230 747 

217 661 

Output Group 4 - Miscellaneous

 

 

 

 

 

4.1 Information and Communication Technology14

25 542 

11 376 

15 515 

19 114 

23 551 

4.5 Tasmanian Risk Management Fund15

70 968 

80 937 

85 894 

84 044 

87 094 

4.6 Fleet Management Services

15 726 

16 642 

17 058 

17 476 

17 894 

4.7 Property Management Services16

37 539 

56 587 

50 178 

45 552 

42 703 

4.8 Infrastructure Investment Project Planning

2 000 

2 000 

2 000 

2 000 

2 000 

 

151 775 

167 542 

170 645 

168 186 

173 242 


Table 4.1:†††††††† Output Group Expense Summary (continued)

 

2019‑20 

2020‑21 

2021‑22 

2022‑23 

2023‑24 

 

 

 

Forward 

Forward 

Forward 

 

Budget 

Budget 

Estimate 

Estimate 

Estimate 

 

$'000 

$'000 

$'000 

$'000 

$'000 

 

 

 

 

 

 

Output Group 89 - Public Building Maintenance Program

 

 

 

 

 

89.1 Public Building Maintenance Program17

.... 

50 597 

9 450 

.... 

.... 

 

.... 

50 597 

9 450 

.... 

.... 

Output Group 90 - COVID-19 Response and Recovery

 

 

 

 

 

90.1 Youth Employment Scheme18

.... 

280 

.... 

.... 

.... 

 

.... 

280 

.... 

.... 

.... 

 

 

 

 

 

 

TOTAL

1 016 689 

1 428 760 

1 063 639 

1 146 251 

1 245 434 

 

 

 

 

 

 

Notes:

1.    The increase in Debt Servicing from 2020-21 primarily reflects anticipated increases in the estimated General Government Sector cash deficit.

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

3.    The decrease in Debt Management in 2020-21 reflects the waiver of debt associated with the Commonwealth State Housing Agreement.

4.    The increase in Government Businesses from 2020-21 primarily reflects payment to the Racing Industry of a share of the Point of Consumption Tax.

5.    The increase in Treasurerís Reserve in 2020-21 reflects a one-off increase to meet expenditure that could not reasonably be foreseen at the time of developing the 2020-21 Budget particularly in relation to the COVID-19 pandemic.

6.    The increase in Miscellaneous in 2020-21 primarily reflects the Governmentís decision to remove agency efficiency dividends from 2020-21 in response to the COVID‑19 pandemic. The decrease from 2021-22 reflects a decrease in expenditure associated with ongoing Government Business Reviews.

7.    The increase in Ex-Gratia Assistance in 2020-21 reflects additional payments to be made under section 55 of the Financial Management Act 2016. This primarily includes payments in relation to corporate reconstructions.

8.    This reflects funding provided to local government by way of an interest rebate on eligible loans as part of the COVID-19 support measures.

9.    This reflects additional funding that has been provided to facilitate the funding of currently unknown future costs in relation to addressing the impact of the COVID-19 pandemic.

10.  This reflects funding provided for the finalisation of outstanding claims made for the Small Business Electricity waiver in 2019‑20.

11.  This reflects grant funding of $20 000 for home owner-occupiers for eligible new home builds where the contract is signed between 4 June 2020 and 31 December 2020.

12.  For further information on the movement in Grants and Subsidies see Table 4.5 Administered Expenses.

13.  The decrease in Superannuation and pensions from 2020-21 primarily reflects a decrease in the discount rate used when calculating the Stateís superannuation liability and associated expenditure.

14.  The decrease in Information and Communication Technology in 2020-21 primarily reflects the current estimated expenditure profile for the Tasmanian Government Radio Network project.

15.  The increase in Tasmanian Risk Management Fund in 2020-21 primarily reflects the latest insurance claim estimates provided by the Stateís Actuary.

16.  The increase in Property Management Services in 2020-21 primarily reflects additional lease contracts that meet the definition of major office accommodation (defined in Treasurerís Instruction C‑2 Contracts - Major Office Accommodation Leases) within Finance‑General, previously recognised by the tenant agency.

17.  This reflects funding provided for the Governmentís Public Building Maintenance Program COVID‑19 related measure. The total value of the program is $70 million.

18.  This reflects funding provided as part of stage one of the Governmentís social and economic support package.

 


 

Output Group 1:††† Debt Servicing and Management

1.1 Debt Servicing

This Output provides for the interest cost incurred in managing the State Governmentís debt portfolio.

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. Agreement was reached with the Australian Government for the waiver of the Commonwealth‑State Housing Agreement Debt on 20 September 2019.

Output Group 2:††† Employee Related Costs

2.1 Superannuation and Pensions

This Output meets the Governmentís share of superannuation and pension costs in respect of defined benefit schemes.

The superannuation and pension expense estimates includes service costs in respect of unfunded superannuation benefits and nominal interest costs on defined benefit liabilities. The estimated value of the expense is based on the most recent actuarial assessment of the superannuation 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

This Output provides funding to Sustainable Timber Tasmania to maintain its firefighting capacity and assist with fighting wild fires.

3.2 State Fire Commission

A provision of $12.6 million has been made for the State Fire Commission in 2020-21 and subsequent years. This includes a permanent increase of $9.8 million per annum to support the central provision for funding excess firefighting costs, taking the total provision to $10 million annually. As has been the case in the past, additional funding to meet bushfire‑related costs will be considered on a year by year basis depending upon funding requirements. A funding provision of $790 000 per annum supports the Bushfire Mitigation Program and the remaining $1.8 million represents the State Governmentís annual funding contribution to the Commission in accordance with section 101 of the Fire Service Act 1979. Further information in relation to the Commission can be found in chapter 25 of this Budget Paper.

3.4 Government Businesses

Contribution to the Tasmanian Racing Industry (Point of Consumption Tax)

The introduction of a Point of Consumption (POC) tax on wagering was announced in the 2019-20 Budget and a commitment was provided to share the net benefits between Government and the racing industry. It was agreed that 80 per cent of the additional revenue generated from the POC tax would be provided to Tasracing to support the thoroughbred, harness and greyhound codes of racing in Tasmania through investment in stakes, infrastructure and animal welfare. The POC tax commenced on 1 January 2020.

Tasracing Pty Ltd - Borrowing Support

As part of the COVID-19 social and economic support measures, it was agreed that Tasracing would be reimbursed for interest costs and guarantee fees related to COVID-19 borrowings for a period of six months.

Output Group 4:††† Miscellaneous

4.1 Information and Communication Technology

This Output relates to the provision of funding for a number of major Information and Communication Technology projects administered by government departments. This Output includes funding for the Tasmanian Government Radio Network. This Project will lead to a significant improvement in the communication capacity of emergency and other organisations. Further information in relation to this Project can be found in the key deliverables section in chapter 8 of this Budget Paper.

4.2 Treasurerís Reserve

This Output provides funding to meet expenditure that could not reasonably be foreseen at the time of developing the 2020-21 Budget and which is essential for timely and efficient financial management.

4.3 Miscellaneous

This Output provides funding for miscellaneous payments including in respect of Government Business Structural Reviews. Funding of $3.1 million has been provided in 2020-21 to provide for costs associated with structural reviews relating to the government business portfolio including expenditure associated with the Vessel Replacement Taskforce.

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. This Output reflects Tasmaniaís contribution to collection and compliance costs.

 

 

4.5 Tasmanian Risk Management Fund

This Output represents anticipated claim and administration costs for the Tasmanian Risk Management Fund. Claim expenditure estimates for the Fund reflect the most recent actuarial advice.

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 Governmentís Fleet Manager of vehicle usage charges, registration and insurance payments by agencies, net of the fleet management fee.

Estimated expenses for this Output include motor vehicle registration expenses and estimated depreciation on motor vehicles.

4.7 Property Management Services

Property Management Services includes building depreciation and rental and other occupancy costs relating to major office accommodation.

The Department of Treasury and Finance works 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 Governmentís leased office accommodation. Strategic divestments of the Stateís property portfolio proposed by the Government are managed, by Treasury, on a case by case basis.

4.8 Infrastructure Investment Project Planning

The Infrastructure Investment Project Planning Output provides funding of $2 million annually to support the early planning stages of major infrastructure projects including as part of the Structured Infrastructure Investment Review Process.

4.9 Ex‑Gratia Assistance

Under section 55 of the Financial Management Act 2016, if the Treasurer is satisfied that it is appropriate to do so because of special circumstances, the Treasurer may authorise an amount to be paid to a person even though the payment would not otherwise be authorised by law or be required to meet a legal liability.

Output Group 89:† Public Building Maintenance Program

89.1 Public Building Maintenance Program

This Output includes funding to fast track the maintenance of public buildings in 2020-21 and 2021-22 funded as part of the Governmentís social and economic support measures. Further information in relation to the Public Building Maintenance Program can be found in chapter 12 of this Budget Paper.

Output Group 90:† COVID-19 Response and Recovery

90.1 Youth Employment Scheme

This Output provides a targeted payroll tax rebate to eligible small business to encourage the employment of more young people.

90.2 Local Government $200 million Interest Free Loans

This Output includes funding assistance in 2020-21 and 2021-22 to Local Government through an interest rebate on borrowings.

90.3 COVID-19 Provision

This Output provides funding assistance in 2020-21 to meet currently unknown future costs in relation to addressing the impact of the COVID-19 pandemic.

90.4 Small Business Electricity Waiver

The Government, as part of its COVID-19 social and economic measures for small businesses, has provided a waiver of the first quarterly electricity bill or three monthly electricity bills issued to eligible small businesses after 1 April 2020.

90.8 Tasmanian HomeBuilder Grant

This Output provides funding in 2020-21 and 2021-22 for eligible owner-occupiers with a grant of $20 000 to build a new home.


 

Capital Investment Program

Table 4.2 provides financial information for Finance-Generalís 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 

2020‑21 

2021‑22 

2022‑23 

2023‑24 

 

Total 

 

Forward 

Forward 

Forward 

 

Cost 

Budget 

Estimate 

Estimate 

Estimate 

 

$'000 

$'000 

$'000 

$'000 

$'000 

 

 

 

 

 

 

 

 

 

 

 

 

Minister for Finance

 

 

 

 

 

 

 

 

 

 

 

Digital Transformation Priority Expenditure Program

Ongoing 

12 600 

14 900 

14 500 

15 000 

 

 

 

 

 

 

Total CIP Allocations

 

12 600 

14 900 

14 500 

15 000 

 

 

 

 

 

 


 

Detailed Budget Statements

Table 4.3:†††††††† Statement of Comprehensive Income - Administered

 

2019‑20 

2020‑21 

2021‑22 

2022‑23 

2023‑24 

 

 

 

Forward 

Forward 

Forward 

 

Budget 

Budget 

Estimate 

Estimate 

Estimate 

 

$'000 

$'000 

$'000 

$'000 

$'000 

 

 

 

 

 

 

Administered revenue and other income

 

 

 

 

 

Appropriation revenue - operating1

646 905 

920 711 

751 410 

785 056 

752 908 

Appropriation revenue - capital1

12 334 

5 600 

14 900 

14 500 

15 000 

Other revenue from government1

.... 

36 024 

.... 

.... 

.... 

Grants2

3 476 237 

3 438 478 

3 850 108 

4 127 700 

4 341 209 

Taxation

1 095 923 

1 099 533 

1 169 778 

1 207 992 

1 240 814 

Sales of goods and services3

109 408 

134 391 

140 263 

138 471 

138 541 

Interest4

18 314 

9 400 

9 940 

11 622 

6 875 

Dividend, tax and rate equivalent income5

524 089 

413 131 

348 208 

295 970 

257 378 

Other revenue

108 664 

115 752 

114 716 

115 631 

114 582 

Total administered revenue

5 991 874 

6 173 020 

6 399 323 

6 696 942 

6 867 307 

Net gain/(loss) on non-financial assets

2 640 

3 189 

3 169 

3 589 

3 129 

Movement in investments in GBEs and SOCs6

(227 627)

.... 

.... 

.... 

.... 

Other gains/(losses) from other economic flows7

910 

86 315 

21 343 

(27 752)

5 408 

Total administered income

5 767 797 

6 262 524 

6 423 835 

6 672 779 

6 875 844 

 

 

 

 

 

 

Administered expenses

 

 

 

 

 

Employee benefits8

399 954 

304 302 

244 232 

230 547 

217 461 

Depreciation and amortisation9

31 915 

49 082 

48 704 

44 593 

42 243 

Supplies and consumables10

118 951 

344 125 

125 319 

123 700 

126 976 

Grants and subsidies11

502 887 

704 321 

594 326 

686 723 

789 796 

Borrowing costs12

12 982 

26 930 

51 058 

60 688 

68 958 

Transfers to the Public Account

5 275 624 

6 459 370 

6 055 042 

5 894 618 

6 055 656 

Other expenses13

(50 000)

.... 

.... 

.... 

.... 

Total administered expenses

6 292 313 

7 888 130 

7 118 681 

7 040 869 

7 301 090 

 

 

 

 

 

 

Administered net result

(524 516)

(1 625 606)

(694 846)

(368 090)

(425 246)

 

 

 

 

 

 


 

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

 

2019‑20 

2020‑21 

2021‑22 

2022‑23 

2023‑24 

 

 

 

Forward 

Forward 

Forward 

 

Budget 

Budget 

Estimate 

Estimate 

Estimate 

 

$'000 

$'000 

$'000 

$'000 

$'000 

 

 

 

 

 

 

Administered other comprehensive income

 

 

 

 

 

Net gain/(loss) on revaluation of equity investment14

.... 

(98 811)

(94 317)

(26 111)

25 987 

Other movements taken directly to equity15

(210 788)

(1)

(1)

(1)

(1)

Net actuarial gains/(losses) of superannuation defined benefit plans16

.... 

(1 189 625)

.... 

.... 

.... 

Total administered other comprehensive income

(210 788)

(1 288 437)

(94 318)

(26 112)

25 986 

 

 

 

 

 

 

Administered comprehensive result

(735 304)

(2 914 043)

(789 164)

(394 202)

(399 260)

 

 

 

 

 

 

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.    The increase in Sales of goods and services primarily reflects an increase in rental income received due to additional lease contracts that meet the definition of major office accommodation (defined in Treasurerís Instruction C‑2 Contracts - Major Office Accommodation Leases) being recognised within Finance‑General. These contracts were previously recognised by the tenant agency.

4.    The decrease in Interest revenue in 2020-21 primarily reflects a lower interest rate compared to 2019‑20. The decrease in 2023‑24 primarily reflects a lower Specific Purpose Account cash balance.

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 decrease in Movement in investments in GBEs and SOCs reflects a reclassification of the movement to Net gain/(loss) on revaluation of equity investment.

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

8.    The decrease in the Employee benefits from 2020-21 primarily reflects a decrease in the discount rate used when calculating the Stateís superannuation liability and associated expenditure.

9.    The increase in Depreciation and amortisation primarily reflects an increase in depreciation expenditure due to additional lease contracts that meet the definition of major office accommodation (defined in Treasurerís Instruction C‑2 Contracts - Major Office Accommodation Leases) being recognised within Finance‑General. These contracts were previously recognised by the tenant agency.

10.  The increase in Supplies and consumables in 2020-21 primarily reflects expenses that have been provisionally allocated to this expenditure category from the $145 million COVID‑19 provision.

11.  For further information on the movement in Grants and subsidies see table 4.5 Administered Expenses.

12.  The increase in Borrowing costs from 2020-21 primarily reflects anticipated increases in the estimated General Government Sector cash deficit.

13.  The change in Other expenses from 2020-21 reflects Governmentís decision to remove agency efficiency dividends from 2020‑21 in response to the COVID‑19 pandemic.

14.  Net gain/(loss) on revaluation of equity investment 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.

15.  Other movements taken directly to equity in 2019-20 reflected the initial application of AASB 15 Revenue from Contracts with Customers.

16.  The movement in Net actuarial gains/(losses) of superannuation defined benefit plans reflects the latest valuation of the Superannuation Liability as provided by the Stateís Actuary.

 


 

Table 4.4:†††††††† Revenue from Appropriation by Output

 

2019‑20 

2020‑21 

2021‑22 

2022‑23 

2023‑24 

 

 

 

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

55 

21 346 

45 635 

55 183 

63 820 

1.2 Interest on Sundry Deposits2

7 910 

1 440 

2 140 

2 784 

3 052 

1.3 Debt Management3

15 050 

.... 

.... 

.... 

.... 

 

23 015 

22 786 

47 775 

57 967 

66 872 

Output Group 2 - Employee Related Costs

 

 

 

 

 

2.3 Provision for 27th Pay

7 400 

7 400 

7 400 

7 400 

7 400 

 

7 400 

7 400 

7 400 

7 400 

7 400 

Output Group 3 - Government Businesses

 

 

 

 

 

3.1 Sustainable Timber Tasmania

2 000 

2 000 

2 000 

2 000 

2 000 

3.2 State Fire Commission

12 836 

12 596 

12 596 

12 596 

12 596 

3.4 Government Businesses4

90 775 

106 122 

120 659 

135 322 

61 201 

 

105 611 

120 718 

135 255 

149 918 

75 797 

Output Group 4 - Miscellaneous

 

 

 

 

 

4.2 Treasurer's Reserve5

10 000 

80 000 

10 000 

10 000 

10 000 

4.3 Miscellaneous6

(12 719)

1 680 

470 

474 

474 

4.4 Payment to Australian Tax Office: GST Administration

13 399 

12 803 

12 805 

12 808 

12 808 

4.9 Ex‑Gratia Assistance7

610 

6 200 

300 

300 

300 

 

11 290 

100 683 

23 575 

23 582 

23 582 

Output Group 90 - COVID-19 Response and Recovery

 

 

 

 

 

90.2 Local Government $200 million Interest Free Loans8

.... 

3 400 

6 000 

.... 

.... 

90.3 COVID-19 Provision9

.... 

136 060 

.... 

.... 

.... 

90.8 Tasmanian HomeBuilder Grant10

.... 

10 000 

10 000 

.... 

.... 

 

.... 

149 460 

16 000 

.... 

.... 

 

 

 

 

 

 

Grants and Subsidies

139 090 

125 020 

164 355 

169 226 

186 034 

 

 

 

 

 

 

Operating Services Expenditure

286 406 

526 067 

394 360 

408 093 

359 685 

 

286 406 

526 067 

394 360 

408 093 

359 685 

 

 

 

 

 

 

Minister for Finance

 

 

 

 

 

 

 

 

 

 

 

Output Group 2 - Employee Related Costs

 

 

 

 

 

2.1 Superannuation and Pensions

350 

350 

350 

350 

350 

 

350 

350 

350 

350 

350 


 

Table 4.4:†††††††† Revenue from Appropriation by Output (continued)

 

2019‑20 

2020‑21 

2021‑22 

2022‑23 

2023‑24 

 

 

 

Forward 

Forward 

Forward 

 

Budget 

Budget 

Estimate 

Estimate 

Estimate 

 

$'000 

$'000 

$'000 

$'000 

$'000 

 

 

 

 

 

 

Output Group 4 - Miscellaneous

 

 

 

 

 

4.1 Information and Communication Technology11

25 542 

12 703 

19 024 

40 838 

48 774 

4.7 Property Management Services

13 962 

11 699 

9 683 

9 888 

10 090 

4.8 Infrastructure Investment Project Planning

2 000 

2 000 

2 000 

2 000 

2 000 

 

41 504 

26 402 

30 707 

52 726 

60 864 

Output Group 89 - Public Building Maintenance Program

 

 

 

 

 

89.1 Public Building Maintenance Program12

.... 

50 597 

9 450 

.... 

.... 

 

.... 

50 597 

9 450 

.... 

.... 

Output Group 90 - COVID-19 Response and Recovery

 

 

 

 

 

90.1 Youth Employment Scheme13

.... 

280 

.... 

.... 

.... 

 

.... 

280 

.... 

.... 

.... 

 

 

 

 

 

 

Capital Investment Program

12 334 

5 600 

14 900 

14 500 

15 000 

 

 

 

 

 

 

Operating Services Expenditure

41 854 

77 629 

40 507 

53 076 

61 214 

Capital Services Expenditure

12 334 

5 600 

14 900 

14 500 

15 000 

 

54 188 

83 229 

55 407 

67 576 

76 214 

 

 

 

 

 

 

Finance-General

 

 

 

 

 

Total Operating Services Expenditure

328 260 

603 696 

434 867 

461 169 

420 899 

Total Capital Services Expenditure

12 334 

5 600 

14 900 

14 500 

15 000 

 

340 594 

609 296 

449 767 

475 669 

435 899 

 

 

 

 

 

 

Reserved by Law

 

 

 

 

 

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

18 432 

17 675 

17 824 

17 974 

18 125 

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

1 017 

1 059 

1 038 

1 018 

999 

Superannuation Benefits Payable under the Governor of Tasmania Act 1982

122 

112 

113 

114 

114 

Superannuation Benefits Payable under the Judges' Contributory Pensions Act 1968

2 086 

1 900 

1 912 

1 920 

1 924 

Superannuation Benefits Payable under the Public Sector Superannuation Reform Act 2016

296 698 

295 998 

295 383 

302 587 

310 573 

Superannuation Benefits Payable under the Solicitor-General Act 1983

290 

271 

273 

274 

274 

 

318 645 

317 015 

316 543 

323 887 

332 009 

 

 

 

 

 

 


Table 4.4:†††††††† Revenue from Appropriation by Output (continued)

 

2019‑20 

2020‑21 

2021‑22 

2022‑23 

2023‑24 

 

 

 

Forward 

Forward 

Forward 

 

Budget 

Budget 

Estimate 

Estimate 

Estimate 

 

$'000 

$'000 

$'000 

$'000 

$'000 

 

 

 

 

 

 

Appropriation Rollover

.... 

36 024 

.... 

.... 

.... 

 

 

 

 

 

 

Total Revenue from Appropriation

659 239 

962 335 

766 310 

799 556 

767 908 

 

 

 

 

 

 

Administered Revenue from Appropriation

659 239 

962 335 

766 310 

799 556 

767 908 

 

659 239 

962 335 

766 310 

799 556 

767 908 

 

 

 

 

 

 

Notes:

1.    The increase in Debt Servicing from 2020-21 primarily reflects anticipated increases in the General Government Sector cash deficit.

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

3.    The decrease in Debt Management from 2020-21 reflects the waiver of debt associated with the Commonwealth State Housing Agreement.

4.    The increase in Government Businesses from 2020-21 primarily reflects payment to the Racing Industry of a share of the Point of Consumption Tax.

5.    The increase in Treasurerís Reserve in 2020-21 reflects a one-off funding increase to meet expenditure that could not reasonably be foreseen at the time of developing the 2020-21 Budget, particularly in relation to the COVID-19 pandemic.

6.    The increase in Miscellaneous in 2020-21 primarily reflects the Governmentís decision to remove agency efficiency dividends from 2020-21 in response to the COVID‑19 pandemic. The decrease from 2021-22 reflects a decrease in expenditure associated with ongoing Government Business Reviews.

7.    The increase in Ex-Gratia Assistance in 2020-21 reflects additional payments to be made under section 55 of the Financial Management Act 2016.

8.    This represents funding provided to local government by way of an interest rebate on eligible loans as part of the COVID-19 economic and social measures.

9.    This represents funding that has been provided to establish a central unallocated funding provision to meet currently unforeseen or uncertain COVID-19 related costs. The full value of the provision is $145 million which includes funding rolled-over from 2019-20 under the provisions of the Financial Management Act 2016.

10.  This represents grant funding of $20 000 for home owner-occupiers for eligible new home builds where the contract is signed between 4 June 2020 and 31 December 2020.

11.  The decrease in Information and Communication Technology in 2020-21 primarily reflects the current estimated expenditure profile for the Tasmanian Government Radio Network project.

12.  This reflects funding provided for the Governmentís Public Building Maintenance Program COVID-19 related measure.

13.  This reflects funding provided as part of stage one of the Governmentís social and economic support package.

 

 


 

Table 4.5:†††††††† Administered Expenses

 

2019‑20 

2020‑21 

2021‑22 

2022‑23 

2023‑24 

 

 

 

Forward 

Forward 

Forward 

 

Budget 

Budget 

Estimate 

Estimate 

Estimate 

 

$'000 

$'000 

$'000 

$'000 

$'000 

 

 

 

 

 

 

Grants and Subsidies

 

 

 

 

 

Energy Retailer Concession

44 899 

43 003 

43 371 

43 744 

44 117 

First Home Builder Assistance1

12 720 

16 020 

12 480 

7 860 

3 360 

Local Government: Grants2

44 317 

43 277 

91 168 

101 693 

126 076 

Management of Australian Government Funding3

302 517 

457 935 

351 680 

460 779 

542 270 

Natural Disaster Relief Scheme4

13 919 

10 581 

532 

532 

532 

Other Grants and Subsidies5

9 034 

2 285 

34 

34 

34 

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

18 432 

17 675 

17 824 

17 974 

18 125 

Payroll Tax Assistance6

4 817 

4 849 

7 665 

6 056 

2 401 

TT-Line Pensioner Concession Subsidy

312 

226 

342 

342 

342 

Water and Sewerage Concessions and Subsidies

9 100 

8 593 

8 791 

8 993 

9 200 

 

460 067 

604 444 

533 887 

648 007 

746 457 

 

 

 

 

 

 

Transfer to the Public Account

5 275 624 

6 459 370 

6 055 042 

5 894 618 

6 055 656 

 

 

 

 

 

 

Other Administered Expenses

556 622 

824 316 

529 752 

498 244 

498 977 

 

 

 

 

 

 

Total Administered Expenses

6 292 313 

7 888 130 

7 118 681 

7 040 869 

7 301 090 

 

 

 

 

 

 

Notes:

1.    The increase in 2020-21 primarily reflects funding provided under the Homebuilder Grant.

2.    The increase in 2021-22 reflects that an advance payment was made for the 2020-21 entitlement in 2019-20.

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

4.    The decrease in the Natural Disaster Relief Scheme primarily reflects the finalisation of costs associated with the June 2016 flood event and revised expenditure associated with the May 2018 extreme weather event.

5.    The decrease in Other Grants and Subsidies in 2020-21 primarily reflects a reduction in expenditure associated with Energy Rebates for Business. The decrease from 2021-22 reflects the cessation of funding for Energy Rebates for Business and Copper Mines of Tasmania.

6.    The increase in Payroll Tax Assistance in 2021-22 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 entered into a Community Service Obligation Agreement with authorised electricity retailers to provide a range of concessions to eligible low income households and pensioners and those requiring specified life support equipment to assist them in meeting the costs of electricity. The decrease in the Electricity Retailer Concession in 2020-21 reflects the decision by the Government to cap electricity prices for all regulated electricity customers as part of its social and economic support measures. There has been no change in electricity concessions rates for 2020-21 as regulated electricity prices decreased on 1 July 2020. The increase over the Forward Estimates period reflects the historical average concession growth rate.

First Home Builder Assistance

The Government has extended the First Home Owner Grant of $20 000 until 30 June 2022, 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 distribution 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.

Other Grants and Subsidies

Funding of $2.3 million has been included for Other Grants and Subsidies in the 2020‑21 Budget. This includes $1.9 million for Copper Mines of Tasmania and minor expenses relating to the Rosetta and Berriedale landslip accounts.

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 Assistance

Payroll Tax Rebate (Trainees, Apprentices and Youth)

The 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 were 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 31 December 2020. A broader Payroll Tax Rebate will be available for new apprentices and trainees employed in all industries between 1 January 2021 and 30 June 2022.

A Payroll Tax Rebate will also continue for new youth employees (persons aged 24 years and under) employed between 1 April 2020 and 30 June 2022.

Expenditure is consistent over 2020-21 to 2021-22 reflecting extended eligibility requirements. Expenditure will gradually decrease from 2021-22 reflecting the time-limited rebate 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 up to $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 the Tasmanian Water and Sewerage Pty Ltd. Payments are made to TasWater which passes the benefit onto eligible concession card holders as lower service charges.


 

Table 4.6:†††††††† Statement of Financial Position as at 30 June - Administered

 

2020 

2021 

2022 

2023 

2024 

 

 

 

Forward 

Forward 

Forward 

 

Budget 

Budget 

Estimate 

Estimate 

Estimate 

 

$'000 

$'000 

$'000 

$'000 

$'000 

 

 

 

 

 

 

Assets

 

 

 

 

 

Financial assets

 

 

 

 

 

Cash and deposits1

1 025 395 

1 121 016 

1 132 409 

925 661 

937 639 

Investments2

248 648 

206 969 

208 669 

1 890 

1 420 

Receivables

99 290 

104 460 

104 460 

104 460 

104 460 

Equity investments3

5 491 493 

4 811 764 

4 899 358 

5 282 020 

5 390 118 

Other financial assets4

798 148 

525 692 

557 203 

546 583 

568 975 

 

7 662 974 

6 769 901 

6 902 099 

6 860 614 

7 002 612 

 

 

 

 

 

 

Non-financial assets

 

 

 

 

 

Assets held for sale

1 181 

791 

791 

791 

791 

Property, plant and equipment

143 765 

141 970 

141 776 

141 962 

140 856 

Infrastructure

31 888 

37 368 

52 268 

66 768 

81 768 

Other assets5

154 611 

221 535 

202 553 

206 139 

215 860 

 

331 445 

401 664 

397 388 

415 660 

439 275 

 

 

 

 

 

 

Total assets

7 994 419 

7 171 565 

7 299 487 

7 276 274 

7 441 887 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

Payables

10 829 

10 815 

10 595 

10 611 

10 372 

Interest bearing liabilities6

1 779 415 

3 575 821 

4 566 258 

5 040 291 

5 705 919 

Superannuation7

7 007 790 

11 461 430 

11 406 793 

11 331 277 

11 234 704 

Other liabilities

326 574 

397 561 

379 067 

351 523 

347 580 

Total liabilities

9 124 608 

15 445 627 

16 362 713 

16 733 702 

17 298 575 

 

 

 

 

 

 

Net assets (liabilities)

(1 130 189)

(8 274 062)

(9 063 226)

(9 457 428)

(9 856 688)

 

 

 

 

 

 

Equity

 

 

 

 

 

Reserves

27 010 

(323 355)

(323 355)

(323 355)

(323 355)

Other reserves

.... 

(56 220)

(150 537)

(176 648)

(150 661)

Accumulated funds

(1 157 199)

(7 894 487)

(8 589 334)

(8 957 425)

(9 382 672)

Total equity

(1 130 189)

(8 274 062)

(9 063 226)

(9 457 428)

(9 856 688)

 

 

 

 

 

 

Notes:

1.    The decrease in Cash and deposits from 2022 primarily reflects lower Specific Purpose Account cash balances.

2.    The decrease in Investments in 2023 reflects the expected drawdown of the TT-Line Vessel Replacement Fund.

3.    The movements in Equity investments primarily 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.

4.    The decrease in Other financial assets in 2020-21 represents the estimated movement of deferred tax assets and liabilities held by government businesses.

5.    The increase in Other assets primarily reflects additional lease contracts that meet the definition of major office accommodation (defined in Treasurerís Instruction C‑2 Contracts ‑ Major Office Accommodation Leases) being recognised within Finance‑General. These contracts were previously recognised by the tenant agency.

6.    The increase in Interest bearing liabilities reflects the anticipated increase in the General Government Sector cash deficit.

7.    The increase in Superannuation primarily reflects the latest advice provided by the Stateís Actuary. The primary reason for the increase is due to a decrease in the discount rate from 4.25 per cent to 1.0 per cent. Further information is included in chapter 7 of The Budget Budget Paper No. 1.

 


 

Table 4.7:†††††††† Statement of Cash Flows - Administered

 

2019‑20 

2020‑21 

2021‑22 

2022‑23 

2023‑24 

 

 

 

Forward 

Forward 

Forward 

 

Budget 

Budget 

Estimate 

Estimate 

Estimate 

 

$'000 

$'000 

$'000 

$'000 

$'000 

 

 

 

 

 

 

Cash flows from operating activities

 

 

 

 

 

Cash inflows

 

 

 

 

 

Appropriation receipts - operating

646 905 

920 711 

751 410 

785 056 

752 908 

Appropriation receipts - capital

12 334 

5 600 

14 900 

14 500 

15 000 

Appropriation receipts - other

.... 

36 024 

.... 

.... 

.... 

Grants

3 341 607 

3 354 792 

3 824 702 

4 093 244 

4 330 354 

Taxation

1 095 954 

1 100 155 

1 169 735 

1 208 088 

1 241 034 

Sales of goods and services

109 408 

134 391 

140 263 

138 471 

138 541 

GST receipts

13 500 

13 500 

13 500 

13 500 

13 500 

Interest received

18 682 

8 472 

10 241 

10 803 

6 845 

Dividends received

511 539 

414 432 

344 442 

286 221 

246 864 

Other cash receipts

108 664 

115 752 

114 716 

115 631 

114 582 

Total cash inflows

5 858 593 

6 103 829 

6 383 909 

6 665 514 

6 859 628 

 

 

 

 

 

 

Cash outflows

 

 

 

 

 

Employee benefits

(30 000)

.... 

.... 

.... 

.... 

Superannuation

(300 363)

(299 490)

(298 869)

(306 063)

(314 034)

Borrowing costs

(13 008)

(26 938)

(51 026)

(60 420)

(68 945)

GST payments

(13 500)

(13 500)

(13 500)

(13 500)

(13 500)

Grants and subsidies

(502 887)

(704 321)

(594 326)

(686 723)

(789 796)

Transfer to the Public Account

(5 275 624)

(6 459 370)

(6 055 042)

(5 894 618)

(6 055 656)

Supplies and consumables

(118 951)

(344 125)

(125 319)

(123 700)

(126 976)

Other cash payments

50 000 

.... 

.... 

.... 

.... 

Total cash outflows

(6 204 333)

(7 847 744)

(7 138 082)

(7 085 024)

(7 368 907)

 

 

 

 

 

 

Net cash from (used by) operating activities

(345 740)

(1 743 915)

(754 173)

(419 510)

(509 279)

 

 

 

 

 

 

Cash flows from investing activities

 

 

 

 

 

Payments for acquisition of non-financial assets

(45 371)

(50 047)

(48 692)

(49 090)

(48 716)

Proceeds from the disposal of non-financial assets

42 381 

17 430 

17 410 

17 830 

17 370 

Equity injections and cash flows from restructuring

(111 395)

(66 676)

(181 911)

(408 773)

(82 111)

Net advances paid

8 487 

(857)

(3 039)

(21 254)

(24 753)

Net receipts/(payments) for investments

(54 927)

(121 596)

(2 170)

206 309 

.... 

Net cash from (used by) investing activities

(160 825)

(221 746)

(218 402)

(254 978)

(138 210)

 

 

 

 

 

 


 

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

 

2019‑20 

2020‑21 

2021‑22 

2022‑23 

2023‑24 

 

 

 

Forward 

Forward 

Forward 

 

Budget 

Budget 

Estimate 

Estimate 

Estimate 

 

$'000 

$'000 

$'000 

$'000 

$'000 

 

 

 

 

 

 

Cash flows from financing activities

 

 

 

 

 

Net borrowings

336 642 

1 987 306 

983 968 

467 740 

659 467 

Net cash from (used by) financing activities

336 642 

1 987 306 

983 968 

467 740 

659 467 

 

 

 

 

 

 

Net increase (decrease) in cash and cash equivalents held

(169 923)

21 645 

11 393 

(206 748)

11 978 

 

 

 

 

 

 

Cash and deposits at the beginning of the reporting period

1 195 318 

1 099 371 

1 121 016 

1 132 409 

925 661 

Cash and deposits at the end of the reporting period

1 025 395 

1 121 016 

1 132 409 

925 661 

937 639