Agency Outline

The Finance-General Division is administered by the Department of Treasury and Finance.

The major activities transacted through Finance-General include the management of the Government’s financial assets and liabilities, meeting the Government’s pension and other superannuation commitments, administration of the Tasmanian Risk Management Fund, management of the Government’s light vehicle fleet and property portfolio and payments to government businesses.

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.

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 Treasurer’s 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 industry’s 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 Treasurer’s 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 Treasurer’s 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 State’s 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 Government’s 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 Government’s 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 Government’s 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 Government’s 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 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 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 Treasurer’s 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 Tasmania’s 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 Government’s 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 Government’s leased office accommodation. Strategic divestments of the State’s 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-General’s Capital Investment Program. More information on the Capital Investment Program is provided in chapter 6 of The Budget Budget Paper No 1.

Table 4.2:         Capital Investment Program

	Estimated	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-Line’s 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 Treasurer’s Reserve in 2021-22. The decrease from 2022-23 reflects a reduction in the Treasurer’s 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 Treasurer’s 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 Treasurer’s 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 Government’s 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 Government’s 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 Premier’s 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 State’s 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.