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.

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 innerBudget 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.

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.

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.


 

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

 

2020‑21 

2021‑22 

2022‑23 

2023‑24 

2024‑25 

 

 

 

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

21 365 

37 894 

67 750 

94 048 

107 090 

1.2 Interest on Sundry Deposits2

563 

269 

336 

519 

985 

 

21 928 

38 163 

68 086 

94 567 

108 075 

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

12 596 

12 596 

12 596 

12 596 

12 596 

3.4 Government Businesses3

2 574 

7 598 

9 844 

11 056 

11 262 

 

17 170 

22 194 

24 440 

25 652 

25 858 

Output Group 4 - Miscellaneous

 

 

 

 

 

4.2 Treasurerís Reserve4

80 000 

150 000 

50 000 

50 000 

50 000 

4.3 Miscellaneous5

4 394 

1 499 

1 005 

1 010 

1 115 

4.4 Payment to Australian Tax Office: GST Administration6

12 803 

14 411 

14 330 

10 176 

10 135 

4.9 Ex-Gratia Assistance7

6 200 

4 700 

300 

300 

300 

 

103 397 

170 610 

65 635 

61 486 

61 550 

Output Group 90 - COVID-19 Response and Recovery

 

 

 

 

 

90.2 Local Government $200 million Interest Free Loans8

3 400 

1 381 

1 711 

1 450 

458 

90.3 COVID-19 Provision9

145 000 

.... 

.... 

.... 

.... 

90.4 Small Business Electricity Waiver10

500 

.... 

.... 

.... 

.... 

90.8 Tasmanian HomeBuilder Grant11

10 000 

23 440 

6 860 

.... 

.... 

 

158 900 

24 821 

8 571 

1 450 

458 

 

 

 

 

 

 

Grants and Subsidies12

604 444 

474 720 

560 974 

539 005 

546 000 

 

 

 

 

 

 

 


 

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

 

2020‑21 

2021‑22 

2022‑23 

2023‑24 

2024‑25 

 

 

 

Forward 

Forward 

Forward 

 

Budget 

Budget 

Estimate 

Estimate 

Estimate 

 

$'000 

$'000 

$'000 

$'000 

$'000 

 

 

 

 

 

 

Minister for Finance

 

 

 

 

 

 

 

 

 

 

 

Output Group 2 - Employee Related Costs

 

 

 

 

 

2.1 Superannuation and Pensions

304 502 

258 165 

247 234 

236 333 

225 270 

 

304 502 

258 165 

247 234 

236 333 

225 270 

Output Group 4 - Miscellaneous

 

 

 

 

 

4.1 Information and Communication Technology13

11 376 

140 

140 

140 

140 

4.5 Tasmanian Risk Management Fund14

80 937 

97 351 

92 117 

98 384 

101 726 

4.6 Fleet Management Services

16 642 

16 566 

16 879 

17 264 

18 166 

4.7 Property Management Services15

56 587 

63 652 

52 170 

48 213 

48 045 

4.8 Infrastructure Investment Project Planning

2 000 

2 000 

2 000 

2 000 

2 000 

 

167 542 

179 709 

163 306 

166 001 

170 077 

Output Group 89 - Public Building Maintenance Program

 

 

 

 

 

89.1 Public Building Maintenance Program16

50 597 

20 819 

.... 

.... 

.... 

 

50 597 

20 819 

.... 

.... 

.... 

Output Group 90 - COVID-19 Response and Recovery

 

 

 

 

 

90.1 Youth Employment Scheme

280 

.... 

.... 

.... 

.... 

 

280 

.... 

.... 

.... 

.... 

 

 

 

 

 

 

TOTAL

1 428 760 

1 189 201 

1 138 246 

1 124 494 

1 137 288 

 

 

 

 

 

 

Notes:

1.    The increase in Debt Servicing primarily reflects increases in borrowings to support the estimated General Government Sector cash deficit together with the impact of forecast higher interest rates.

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

3.    The increase in Government Businesses in 2021-22 primarily reflects revised payments to the racing industry, representing the industryís share of the Point of Consumption tax. The increase from 2022-23 primarily reflects funding provided to Metro Tasmania Pty Ltd to implement a common ticketing system.

4.    The Treasurerís Reserve has been increased in 2021-22 to meet unexpected costs which could not be reasonably foreseen at the time of developing the 2021-22 Budget, particularly in relation to the COVID-19 pandemic.

5.    The decrease in Miscellaneous from 2021-22 primarily reflects lower expenditure associated with ongoing Government Business Structural Reviews.

6.    The decrease in Payment to Australian Tax Office: GST Administration from 2023-24 primarily reflects a reduction in GST compliance expenditure.

7.    The expenditure associated with Ex-Gratia Assistance in 2021-22 reflects expected payments to be made under section 55 of the Financial Management Act 2016.

8.    The funding assistance provided to councils forms part of the COVID-19 Response and Recovery measures. The variation in the Budget and Forward Estimates reflects estimated cash flows based on approved council loan schedules.

9.    The 2020-21 Budget provided funding to meet unknown future costs in relation to the COVID-19 pandemic. The Treasurerís Reserve has been increased in 2021-22 and will be used to fund any unforeseen COVID-19 expenditure.

10.  The decrease in Small Business Electricity Waiver reflects the cessation of the Small Business Electricity Waiver in 2020-21.

11.  The increase in Tasmanian HomeBuilder Grant in 2021-22 reflects that the Tasmanian and Australian Government construction commencement requirements have been extended from six to 18 months for all new home builds or substantial renovations. This applies to applicants who had signed building contracts between 4 June 2020 and 31 March 2021.

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

13.  The decrease in Information and Communication Technology from 2021‑22 reflects the transfer of expenditure associated with the Tasmanian Government Radio Network to the Department of Police, Fire and Emergency Management.

14.  The increase in Tasmanian Risk Management Fund in 2021‑22 primarily reflects changes in potential claim estimates provided by the Stateís Actuary.

15.  The increase in Property Management Services in 2021‑22 primarily reflects the recognition of additional lease contracts under AASB 16 Leases. The decrease from 2022‑23 primarily reflects the expiration of current lease contracts.

16.  The decrease in Public Building Maintenance Program reflects the completion of maintenance work funded under this Program as part of the Governmentís COVID-19 Response and Recovery measures.


17. 

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.

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 include 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

This Output makes provision to support the State Fire Commission in funding excess firefighting costs, to support the Bushfire Mitigation Program and to meet the State Governmentís annual funding contribution to the State Fire Commission in accordance with section 101 of the Fire Service Act 1979. Further information in relation to the Commission can be found in chapter 26 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 201920 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 Pty Ltd 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.

ITS Network Optimisation

This commitment provides $2 million, over four years, to support Metro Tasmania Pty Ltd to implement its Intelligent Transport Systems project.

Output Group 4:††† Miscellaneous

4.1 Information and Communication Technology

This Output provides funding for program management expenditure associated with the Digital Transformation Priority Expenditure Program. Funding for the Tasmanian Government Radio Network has been transferred to the Department of Police, Fire and Emergency Management from 2021‑22.

4.2 Treasurerís Reserve

This Output provides funding to meet expenditure that could not reasonably be foreseen at the time of developing the 2021‑22 Budget and which is essential for timely and efficient financial management.

4.3 Miscellaneous

This Output provides funding for miscellaneous payments including expenditure related to Government Business Structural Reviews.

4.4 Payment to Australian Tax 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, the proceeds of vehicle write-offs, miscellaneous revenue items and receipts from the Governmentís Fleet Manager for vehicle usage charges, registration payments and return of insurance excesses for agencies.

Estimated expenses for this Output include motor vehicle registration expenses, estimated depreciation on motor vehicles and the refund of insurance excesses to agencies.

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 annual funding 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.


 

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

2021-22 

2022-23 

2023-24 

2024-25 

 

Total

 

Forward 

Forward 

Forward 

 

Cost 

Budget 

Estimate 

Estimate 

Estimate 

 

$'000 

$'000 

$'000 

$'000 

$'000 

 

 

 

 

 

 

 

 

 

 

 

 

Minister for Finance

 

 

 

 

 

 

 

 

 

 

 

Digital Transformation Priority Expenditure Program

Ongoing 

23 940 

16 665 

18 800 

25 000 

 

 

 

 

 

 

Total CIP Allocations

 

23 940 

16 665 

18 800 

25 000 

 

 

 

 

 

 


 

Detailed Budget Statements

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

 

2020‑21 

2021‑22 

2022‑23 

2023‑24 

2024‑25 

 

 

 

Forward 

Forward 

Forward 

 

Budget 

Budget 

Estimate 

Estimate 

Estimate 

 

$'000 

$'000 

$'000 

$'000 

$'000 

 

 

 

 

 

 

Administered revenue and other income

 

 

 

 

 

Appropriation revenue - operating1

920 711 

943 758 

884 194 

851 976 

727 169 

Appropriation revenue - capital1

5 600 

20 033 

16 665 

18 800 

25 000 

Other revenue from government1

36 024 

30 409 

.... 

.... 

.... 

Grants2

3 438 478 

4 071 125 

4 324 089 

4 467 229 

4 614 063 

Taxation2

1 099 533 

1 317 863 

1 394 150 

1 466 891 

1 537 667 

Sales of goods and services

134 391 

162 385 

163 192 

163 676 

166 232 

Interest3

9 400 

5 031 

9 275 

15 685 

20 706 

Dividend, tax and rate equivalent income4

413 131 

383 826 

316 070 

286 141 

308 031 

Other revenue

115 752 

118 416 

115 752 

114 782 

114 782 

Total administered revenue

6 173 020 

7 052 846 

7 223 387 

7 385 180 

7 513 650 

Net gain/(loss) on non-financial assets

3 189 

4 623 

4 733 

6 537 

4 535 

Other gains/(losses) from other economic flows5

86 315 

(6 863)

(23 184)

(8 127)

5 485 

Total administered income

6 262 524 

7 050 606 

7 204 936 

7 383 590 

7 523 670 

 

 

 

 

 

 

Administered expenses

 

 

 

 

 

Employee benefits6

304 302 

257 965 

247 034 

236 133 

225 070 

Depreciation and amortisation

49 082 

51 189 

47 888 

46 231 

46 952 

Supplies and consumables7

344 125 

289 906 

176 917 

177 309 

180 928 

Grants and subsidies8

704 321 

547 493 

594 062 

566 181 

572 388 

Borrowing costs9

26 930 

42 648 

72 345 

98 640 

111 950 

Transfers to the Public Account

6 459 370 

6 869 855 

6 613 609 

6 760 556 

6 708 714 

Total administered expenses

7 888 130 

8 059 056 

7 751 855 

7 885 050 

7 846 002 

 

 

 

 

 

 

Administered net result

(1 625 606)

(1 008 450)

(546 919)

(501 460)

(322 332)

 

 

 

 

 

 

 


 

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

 

2020‑21 

2021‑22 

2022‑23 

2023‑24 

2024‑25 

 

 

 

Forward 

Forward 

Forward 

 

Budget 

Budget 

Estimate 

Estimate 

Estimate 

 

$'000 

$'000 

$'000 

$'000 

$'000 

 

 

 

 

 

 

Administered other comprehensive income

 

 

 

 

 

Net gain/(loss) on revaluation of equity investment10

(98 811)

(181 210)

(117 683)

(160 263)

(2 183)

Other movements taken directly to equity

(1)

(1)

(1)

(1)

(1)

Net actuarial gains/(losses) of superannuation defined benefit plans11

(1 189 625)

.... 

.... 

.... 

.... 

Total administered other comprehensive income

(1 288 437)

(181 211)

(117 684)

(160 264)

(2 184)

 

 

 

 

 

 

Administered comprehensive result

(2 914 043)

(1 189 661)

(664 603)

(661 724)

(324 516)

 

 

 

 

 

 

Notes:

1.    Explanations for significant variances and further information can be found in Table 4.4 Revenue from Appropriation by Output.

2.    Explanations for significant variances and further information can be found in chapter 5 of The Budget Budget Paper No 1.

3.    The decrease in Interest in 2021-22 primarily reflects a lower interest-earning rate on investments together with lower investments following the first instalment payment for the purchase of TT-Lineís new vessels. The increase from 2022‑23 reflects an increase in the estimated cash balance and interest-earning rate.

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

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

6.    The variation in Employee benefits from 2020-21 primarily reflects the latest actuarial assessments of superannuation expenditure.

7.    The decrease in Supplies and consumables in 2021-22 primarily reflects the cessation of the COVID-19 provision in 2020-21. This decrease is partially offset by an increase to the Treasurerís Reserve in 2021-22. The decrease from 2022-23 reflects a reduction in the Treasurerís Reserve.

8.    Explanations for the variation in Grants and subsidies can be found in Table 4.5 Administered Expenses.

9.    The increase in Borrowing costs primarily reflects increases in borrowings to support the estimated General Government Sector cash deficit together with the impact of forecast higher interest rates.

10.  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.

11.  The Net actuarial gains/(losses) of superannuation defined benefit plans was recognised in the 2020-21 Budget as a result of the final outcome and audited financial statements being available at the time of preparing the Budget.


12.   

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

 

2020‑21 

2021‑22 

2022‑23 

2023‑24 

2024‑25 

 

 

 

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

21 346 

36 207 

67 789 

94 051 

107 119 

1.2 Interest on Sundry Deposits2

1 440 

1 394 

1 576 

2 300 

4 078 

 

22 786 

37 601 

69 365 

96 351 

111 197 

Output Group 2 - Employee Related Costs

 

 

 

 

 

2.3 Provision for 27th Pay3

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

12 596 

12 596 

12 596 

12 596 

12 596 

3.4 Government Businesses4

106 122 

189 752 

207 833 

154 317 

21 510 

 

120 718 

204 348 

222 429 

168 913 

36 106 

Output Group 4 - Miscellaneous

 

 

 

 

 

4.2 Treasurer's Reserve5

80 000 

150 000 

50 000 

50 000 

50 000 

4.3 Miscellaneous6

1 680 

1 424 

1 005 

1 010 

1 115 

4.4 Payment to Australian Tax Office: GST Administration7

12 803 

14 411 

14 330 

10 176 

10 135 

4.9 Ex-Gratia Assistance8

6 200 

4 700 

300 

300 

300 

 

100 683 

170 535 

65 635 

61 486 

61 550 

Output Group 90 - COVID-19 Response and Recovery

 

 

 

 

 

90.2 Local Government $200 million Interest Free Loans9

3 400 

1 381 

1 711 

1 450 

458 

90.3 COVID-19 Provision10

136 060 

.... 

.... 

.... 

.... 

90.8 Tasmanian HomeBuilder Grant11

10 000 

23 440 

6 860 

.... 

.... 

 

149 460 

24 821 

8 571 

1 450 

458 

 

 

 

 

 

 

Grants and Subsidies

125 020 

164 557 

188 679 

187 958 

166 723 

 

 

 

 

 

 

Operating Services

526 067 

601 862 

554 679 

516 158 

376 034 

 

526 067 

601 862 

554 679 

516 158 

376 034 

 

 

 

 

 

 

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)

 

2020‑21 

2021‑22 

2022‑23 

2023‑24 

2024‑25 

 

 

 

Forward 

Forward 

Forward 

 

Budget 

Budget 

Estimate 

Estimate 

Estimate 

 

$'000 

$'000 

$'000 

$'000 

$'000 

 

 

 

 

 

 

Output Group 4 - Miscellaneous

 

 

 

 

 

4.1 Information and Communication Technology12

12 703 

140 

140 

140 

140 

4.7 Property Management Services13

11 699 

13 911 

9 495 

9 694 

9 899 

4.8 Infrastructure Investment Project Planning

2 000 

2 000 

2 000 

2 000 

2 000 

 

26 402 

16 051 

11 635 

11 834 

12 039 

Output Group 89 - Public Building Maintenance Program

 

 

 

 

 

89.1 Public Building Maintenance Program14

50 597 

12 952 

.... 

.... 

.... 

 

50 597 

12 952 

.... 

.... 

.... 

Output Group 90 - COVID-19 Response and Recovery

 

 

 

 

 

90.1 Youth Employment Scheme

280 

.... 

.... 

.... 

.... 

 

280 

.... 

.... 

.... 

.... 

 

 

 

 

 

 

Capital Investment Program

5 600 

20 033 

16 665 

18 800 

25 000 

 

 

 

 

 

 

Operating Services

77 629 

29 353 

11 985 

12 184 

12 389 

Capital Services

5 600 

20 033 

16 665 

18 800 

25 000 

 

83 229 

49 386 

28 650 

30 984 

37 389 

 

 

 

 

 

 

Finance-General

 

 

 

 

 

Total Operating Services

603 696 

631 215 

566 664 

528 342 

388 423 

Total Capital Services

5 600 

20 033 

16 665 

18 800 

25 000 

 

609 296 

651 248 

583 329 

547 142 

413 423 

 

 

 

 

 

 

Reserved by Law

 

 

 

 

 

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

17 675 

18 651 

18 883 

19 174 

19 470 

Payments under the Public Sector Superannuation Reform (Parliamentary Superannuation) Regulations 2016

1 059 

1 019 

1 004 

988 

971 

Superannuation Benefits Payable under the Governor of Tasmania Act 1982

112 

113 

114 

114 

114 

Superannuation Benefits Payable under the Judges' Contributory Pensions Act 1968

1 900 

1 912 

1 920 

1 924 

1 921 

Superannuation Benefits Payable under the Public Sector Superannuation Reform Act 2016

295 998 

290 575 

295 335 

301 160 

315 996 

Superannuation Benefits Payable under the Solicitor-General Act 1983

271 

273 

274 

274 

274 

 

317 015 

312 543 

317 530 

323 634 

338 746 


 

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

 

2020‑21 

2021‑22 

2022‑23 

2023‑24 

2024‑25 

 

 

 

Forward 

Forward 

Forward 

 

Budget 

Budget 

Estimate 

Estimate 

Estimate 

 

$'000 

$'000 

$'000 

$'000 

$'000 

 

 

 

 

 

 

Appropriation Rollover

36 024 

30 409 

.... 

.... 

.... 

 

 

 

 

 

 

Total Revenue from Appropriation

962 335 

994 200 

900 859 

870 776 

752 169 

 

 

 

 

 

 

Administered Revenue from Appropriation

962 335 

994 200 

900 859 

870 776 

752 169 

 

962 335 

994 200 

900 859 

870 776 

752 169 

 

 

 

 

 

 

Notes:

1.    The increase in Debt Servicing primarily reflects increases in borrowings to support the estimated General Government Sector cash deficit together with the impact of forecast higher interest rates.

2.    The variation in Interest on Sundry Deposits reflects variations in cash balances and interest rates over the Budget and Forward Estimates.

3.    The decrease in Employee Related Costs reflects the closure of the Payroll Provision Account. This Account was previously used to fund the 27th pay, which occurs approximately every five years. The 27th pay is now funded by agency appropriations.

4.    The variation in Government Businesses primarily reflect equity contributions provided through the General Government Sector. Further details on equity contributions can be found in chapter 6 of The Budget Budget Paper No 1.

5.    The Treasurerís Reserve has been increased in 2021-22 to meet unexpected costs which could not be reasonably foreseen at the time of developing the 2021-22 Budget, particularly in relation to COVID-19 pandemic.

6.    The decrease in Miscellaneous from 2022-23 primarily reflects the finalisation of grant expenditure associated with the Tasmanian Cycle Tourism Strategy.

7.    The decrease in Payment to Australian Tax Office: GST Administration from 2023-24 primarily reflects a reduction in GST compliance expenditure.

8.    The expenditure associated with Ex-Gratia Assistance in 2021-22 reflects expected payments to be made under section 55 of the Financial Management Act.

9.    The funding assistance provided to councils forms part of the COVID-19 Response and Recovery support measures. The variation in the Budget and Forward Estimates reflect revised cash flows based on approved council loan schedules.

10.  The 2020-21 Budget provided funding to meet unknown future costs in relation to the COVID-19 pandemic. From 2021-22, the Treasurerís Reserve has been increased and will be used to fund any unforeseen COVID-19 expenditure.

11.  The increase in Tasmanian HomeBuilder Grant in 2021-22 reflects the Tasmanian and Australian Government construction commencement requirements that have been extended from six to 18 months for all new home builds or substantial renovations. This applies to applicants who had signed building contracts between 4 June 2020 and 31 March 2021.

12.  The decrease in Information and Communication Technology from 2021-22 reflects the transfer of expenditure associated with the Tasmanian Government Radio Network to the Department of Police, Fire and Emergency Management.

13.  The decrease in Property Management Services from 2022-23 primarily reflects the finalisation of costs associated with the Parliament Square fit-out and revised cash flows associated with the Capital Investment Program - Essential Maintenance.

14.  The decrease in Public Building Maintenance Program reflects the completion of maintenance work funded under this Program as part of the Governmentís COVID-19 Response and Recovery measures.

 

 


 

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

 

2020‑21 

2021‑22 

2022‑23 

2023‑24 

2024‑25 

 

 

 

Forward 

Forward 

Forward 

 

Budget 

Budget 

Estimate 

Estimate 

Estimate 

 

$'000 

$'000 

$'000 

$'000 

$'000 

 

 

 

 

 

 

Grants and Subsidies

 

 

 

 

 

Energy Retailer Concession1

43 003 

56 306 

44 872 

45 447 

46 026 

First Home Builder Assistance2

16 020 

26 280 

15 360 

4 080 

4 080 

Local Government: Grants3

43 277 

55 004 

101 659 

123 059 

105 629 

Management of Australian Government Funding4

457 935 

289 111 

353 384 

331 845 

359 779 

Natural Disaster Relief Scheme5

10 581 

3 091 

532 

532 

532 

Other Grants and Subsidies6

2 285 

9 407 

7 534 

34 

34 

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

17 675 

18 651 

18 883 

19 174 

19 470 

Payroll Tax Assistance7

4 849 

7 320 

8 988 

4 855 

250 

TT-Line Pensioner Concession Subsidy

226 

342 

342 

342 

342 

Water and Sewerage Concessions and Subsidies

8 593 

9 208 

9 420 

9 637 

9 858 

 

604 444 

474 720 

560 974 

539 005 

546 000 

 

 

 

 

 

 

Transfer to the Public Account

6 459 370 

6 869 855 

6 613 609 

6 760 556 

6 708 714 

 

 

 

 

 

 

Other Administered Expenses

824 316 

714 481 

577 272 

585 489 

591 288 

 

 

 

 

 

 

Total Administered Expenses

7 888 130 

8 059 056 

7 751 855 

7 885 050 

7 846 002 

 

 

 

 

 

 

Notes:

1.    The increase in Energy Retailer Concession in 2021-22 primarily reflects the one‑off cost associated with the Winter Energy Supplement.

2.    The increase in First Home Builder Assistance in 2021-22 reflects the Governmentís decision to increase the First Home Owner Grant from $20 000 to $30 000 for eligible contracts entered into from 1 April 2021 until 30 June 2022.

3.    The increase in Local Government: Grants in 2022-23 reflects the full Financial Assistance Grant to Local Government. An advance was received in 2019-20 in relation to the 2020-21 entitlement, and a further advance was received in 2020-21 in relation to the 2021-22 entitlement.

4.    The variation in Management of Australian Government Funding reflects the timing of grant payments associated with National Partnership agreements.

5.    The decrease in Natural Disaster Relief Scheme in 2021-22 reflects the finalisation of costs associated with the May 2018 extreme weather event, the 2018‑19 bushfire event and the April 2020 storm event.

6.    The increase in Other Grants and Subsidies in 2021-22 and 2022-23 reflects funding associated with the Headworks Holiday to unlock new land supply.

7.    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.

 


 

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 2021-22 Budget incorporates the one-off cost associated with provision of the $12 million Winter Energy Supplement. The Winter Energy Supplement is a one-off discount of $125 per household for customers that are eligible for the annual electricity pensioner concession. The Supplement discount is applied to the first electricity bill received by eligible customers after 30 June 2021 and is delivered through the existing Community Service Obligation Agreements. An annual growth factor is applied to the base amount (excluding the one-off Winter Energy Supplement) from 2022-23 onwards.

First Home Builder Assistance

The Government has increased the First Home Owner Grant from $20 000 to $30 000 for eligible contracts entered into from 1 April 2021 until 30 June 2022 (inclusive).

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 $9.4 million has been included for Other Grants and Subsidies in the 2021-22 Budget. This includes $1.9 million for Copper Mines of Tasmania and $7.5 million for the Headworks Holiday to assist developers in meeting the cost of electricity and water and sewerage connections associated with the development of new residential subdivisions.

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

In accordance with the provisions of the Local Government (Rates and Charges Remissions) Act, 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 Scheme provides payroll tax relief to businesses operating in Tasmania that employ apprentices, trainees and youth employees. From 1 January 2021, the scheme was extended and widened to give effect to a recommendation by the Premierís Economic and Social Recovery Advisory Council. The Scheme now applies to all new apprentices and trainees, regardless of industry, employed until 30 June 2022.

The payroll tax rebate is provided for two years from the date that apprentices and trainees are employed, and one year from the date that youth employees are employed.

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 to partially offset the cost of providing concessions to pensioners.

Water and Sewerage Concessions

Under the Water and Sewerage Industry (Community Service Obligation) Act 2009, concessions are available to eligible low income households and pensioners to assist in meeting the cost of services provided by 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

 

2021 

2022 

2023 

2024 

2025 

 

 

 

Forward 

Forward 

Forward 

 

Budget 

Budget 

Estimate 

Estimate 

Estimate 

 

$'000 

$'000 

$'000 

$'000 

$'000 

 

 

 

 

 

 

Assets

 

 

 

 

 

Financial assets

 

 

 

 

 

Cash and deposits1

1 121 016 

1 066 972 

1 090 876 

1 331 344 

1 391 580 

Investments2

206 969 

43 528 

1 880 

1 410 

940 

Receivables

104 460 

96 201 

96 201 

96 201 

96 201 

Equity investments3

4 811 764 

5 028 582 

5 227 329 

5 245 285 

5 273 350 

Other financial assets4

525 692 

425 342 

433 238 

449 025 

481 329 

 

6 769 901 

6 660 625 

6 849 524 

7 123 265 

7 243 400 

 

 

 

 

 

 

Non-financial assets

 

 

 

 

 

Assets held for sale

791 

572 

572 

572 

572 

Property, plant and equipment

141 970 

137 128 

139 553 

145 297 

147 004 

Infrastructure5

37 368 

51 580 

68 245 

87 045 

112 045 

Other assets6

221 535 

221 169 

201 006 

183 611 

162 505 

 

401 664 

410 449 

409 376 

416 525 

422 126 

 

 

 

 

 

 

Total assets

7 171 565 

7 071 074 

7 258 900 

7 539 790 

7 665 526 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

Payables

10 815 

30 386 

30 100 

29 859 

29 615 

Interest bearing liabilities7

3 575 821 

3 457 735 

4 258 820 

5 031 643 

5 525 115 

Superannuation8

11 461 430 

9 893 800 

9 842 037 

9 773 560 

9 679 204 

Other liabilities9

397 561 

505 975 

609 368 

847 877 

899 257 

Total liabilities

15 445 627 

13 887 896 

14 740 325 

15 682 939 

16 133 191 

 

 

 

 

 

 

Net assets (liabilities)

(8 274 062)

(6 816 822)

(7 481 425)

(8 143 149)

(8 467 665)

 

 

 

 

 

 

Equity

 

 

 

 

 

Reserves

(323 355)

10 592 

10 592 

10 592 

10 592 

Other reserves

(56 220)

(1 098 509)

(1 216 192)

(1 376 455)

(1 378 638)

Accumulated funds

(7 894 487)

(5 728 905)

(6 275 825)

(6 777 286)

(7 099 619)

Total equity

(8 274 062)

(6 816 822)

(7 481 425)

(8 143 149)

(8 467 665)

 

 

 

 

 

 

Notes:

1.    The increase in Cash and deposits over the Forward Estimates reflects higher Specific Purpose Account cash balances.

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

3.    The increase in Equity investments primarily reflect the estimated change in the value of net assets of government businesses between 1 July and 30 June each year.

4.    The decrease in Other financial assets in 2022 represents the estimated movement of deferred tax assets and liabilities held by government businesses.

5.    The increase in Infrastructure reflects expenditure associated with the Digital Transformation Priority Expenditure Program.

6.    The decrease in Other assets primarily reflects the net value of leased assets net of annual depreciation.

7.    The increase in Interest bearing liabilities primarily reflects the increase in borrowings to support the General Government Sector cash deficit.

8.    The decrease in Superannuation primarily reflects the latest actuarial advice provided by the Stateís Actuary. The primary reason for the movement is due to a change in the discount rate from 1.0 per cent to 1.5 per cent. Further information is included in chapter 7 of The Budget Budget Paper No 1.

9.    The increase in Other liabilities primarily reflects revised contract liability balances (AASB 15 Revenue from Contracts with Customers) based on the timing of cash flows within the Australian Government Funding Management Account.

 

 


 

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

 

2020‑21 

2021‑22 

2022‑23 

2023‑24 

2024‑25 

 

 

 

Forward 

Forward 

Forward 

 

Budget 

Budget 

Estimate 

Estimate 

Estimate 

 

$'000 

$'000 

$'000 

$'000 

$'000 

 

 

 

 

 

 

Cash flows from operating activities

 

 

 

 

 

Cash inflows

 

 

 

 

 

Appropriation receipts - operating

920 711 

943 758 

884 194 

851 976 

727 169 

Appropriation receipts - capital

5 600 

20 033 

16 665 

18 800 

25 000 

Appropriation receipts - other

36 024 

30 409 

.... 

.... 

.... 

Grants

3 354 792 

4 115 304 

4 420 570 

4 698 826 

4 658 531 

Taxation

1 100 155 

1 317 939 

1 394 253 

1 467 077 

1 537 807 

Sales of goods and services

134 391 

162 385 

163 192 

163 676 

166 232 

GST receipts

13 500 

13 500 

13 500 

13 500 

13 500 

Interest received

8 472 

5 068 

9 134 

15 622 

20 423 

Dividends received1

414 432 

451 686 

291 688 

268 764 

288 015 

Other cash receipts

115 752 

118 416 

115 752 

114 782 

114 782 

Total cash inflows

6 103 829 

7 178 498 

7 308 948 

7 613 023 

7 551 459 

 

 

 

 

 

 

Cash outflows

 

 

 

 

 

Superannuation

(299 490)

(294 042)

(298 797)

(304 610)

(319 426)

Borrowing costs

(26 938)

(38 345)

(70 616)

(97 717)

(112 031)

GST payments

(13 500)

(13 500)

(13 500)

(13 500)

(13 500)

Grants and subsidies

(704 321)

(547 493)

(594 062)

(566 181)

(572 388)

Transfer to the Public Account

(6 459 370)

(6 869 855)

(6 613 609)

(6 760 556)

(6 708 714)

Supplies and consumables

(344 125)

(289 906)

(176 917)

(177 309)

(180 928)

Total cash outflows

(7 847 744)

(8 053 141)

(7 767 501)

(7 919 873)

(7 906 987)

 

 

 

 

 

 

Net cash from (used by) operating activities

(1 743 915)

(874 643)

(458 553)

(306 850)

(355 528)

 

 

 

 

 

 

Cash flows from investing activities

 

 

 

 

 

Payments for acquisition of non-financial assets2

(50 047)

(62 641)

(52 906)

(58 745)

(61 810)

Proceeds from the disposal of non-financial assets

17 430 

18 864 

18 974 

20 778 

18 776 

Equity injections and cash flows from restructuring3

(66 676)

(275 132)

(316 430)

(178 219)

(30 248)

Net advances paid

(857)

470 

470 

470 

470 

Net receipts/(payments) for investments4

(121 596)

21 245 

41 178 

.... 

.... 

Net cash from (used by) investing activities

(221 746)

(297 194)

(308 714)

(215 716)

(72 812)

 

 

 

 

 

 

 


 

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

 

2020‑21 

2021‑22 

2022‑23 

2023‑24 

2024‑25 

 

 

 

Forward 

Forward 

Forward 

 

Budget 

Budget 

Estimate 

Estimate 

Estimate 

 

$'000 

$'000 

$'000 

$'000 

$'000 

 

 

 

 

 

 

Cash flows from financing activities

 

 

 

 

 

Net borrowings

1 987 306 

868 467 

791 171 

763 034 

488 576 

Net cash from (used by) financing activities

1 987 306 

868 467 

791 171 

763 034 

488 576 

 

 

 

 

 

 

Net increase (decrease) in cash and cash equivalents held

21 645 

(303 370)

23 904 

240 468 

60 236 

 

 

 

 

 

 

Cash and deposits at the beginning of the reporting period

1 099 371 

1 370 342 

1 066 972 

1 090 876 

1 331 344 

Cash and deposits at the end of the reporting period

1 121 016 

1 066 972 

1 090 876 

1 331 344 

1 391 580 

 

 

 

 

 

 

Notes:

1.     Dividends received include dividends, rate equivalent income and income tax equivalent income. The Dividend, tax and rate equivalent income within Table 4.3 Statement of Comprehensive Income - Administered includes accrued revenue relating to income tax equivalents which is not recognised within the Statement of Cash Flows - Administered.

2.     The increase in Payments for acquisition of non-financial assets in 2021-22 primarily reflects the timing of cash flows associated with the Digital Transformation Priority Expenditure Program and the allocation of additional funding for Digital Health Transformation.

3.     The increase in Equity injections and cash flows from restructuring in 2021-22 primarily reflects equity contributions provided through the General Government Sector. Further details on equity transfers can be found in chapter 6 of The Budget Budget Paper No 1.

4.     The variation in Net receipts/(payments) for investments reflects the drawdown of the TT-Line Vessel Replacement Fund.