4     2022-23 Budget and Forward Estimates

Key Issues

·       The Net Operating Balance is estimated to be a deficit of $474.6 million for 2022-23, improving over the Forward Estimates period to an estimated surplus of $30.5 million in 2025-26.

·       The Fiscal Balance remains in deficit over the 2022-23 Budget and Forward Estimates period, with an estimated deficit of $1 135.9 million in 2022-23 improving to an estimated deficit of $283.6 million in 2025-26.

·       Net Debt (including the impact of Leases under AASB 16) is estimated to be $2 994 million as at 30 June 2023 increasing to $5 179 million as at 30 June 2026.

·       This chapter includes the Policy and Parameter Statement, which provides a reconciliation of the major movements in the Net Operating Balance and the Fiscal Balance between the Budget and Forward Estimates presented in the 2021-22 Budget Papers and those presented in these Budget Papers. Detailed information on 2022-23 Budget initiatives can be found in Government Services Budget Paper No 2.


 

Overview

This chapter includes the General Government Sector Financial Statements for the 2022‑23 Budget and Forward Estimates period and the Estimated Outcome for 202122. It also incorporates the Policy and Parameter Statement, which reflects changes between the Budget and Forward Estimates reported in the 2021‑22 Budget Papers and the 2022‑23 Budget Papers.

In addition, this chapter includes the Public Account Budget and Forward Estimates together with Specific Purpose Account Estimated Receipts and Expenditure for 2022‑23. These reports are prepared to meet requirements under the Financial Management Act 2016.

The financial statements in this chapter have been prepared in accordance with the Uniform Presentation Framework. The statements present information for the 2021‑22 Budget and for the 2022‑23 Budget and Forward Estimates. Taxation information, required under the UPF, is provided in chapter 5 of this Budget Paper.

In accordance with the UPF, the final end of year results for the General Government Sector for 2022-23 will be presented in the Treasurer’s Annual Financial Report 2022-23, which is required to be released by no later than 31 October 2023.

 


 

Government Financial Estimates

Tables 4.1 to 4.3 detail the Income Statement, Balance Sheet and Cash Flow Statement for the General Government Sector.

Table 4.1:         General Government Income Statement

 

2021‑22 

2021‑22 

2022‑23 

2023‑24 

2024‑25 

2025‑26 

 

 

Estimated 

 

Forward 

Forward 

Forward 

 

Budget 

Outcome 

Budget 

Estimate 

Estimate 

Estimate 

 

$m 

$m 

$m 

$m 

$m 

$m 

 

 

 

 

 

 

 

Revenue from transactions1

 

 

 

 

 

 

Grants

4 653.2 

5 128.9 

5 099.5 

5 398.6 

5 468.7 

5 455.7 

Taxation

1 448.3 

1 549.9 

1 613.3 

1 715.2 

1 792.2 

1 870.7 

Sales of goods and services

441.7 

442.4 

451.1 

464.8 

476.8 

481.4 

Fines and regulatory fees

107.2 

110.9 

111.2 

116.3 

117.7 

119.2 

Interest income

7.9 

8.1 

29.2 

36.3 

35.5 

36.9 

Dividend, tax and rate equivalent income

383.8 

377.7 

336.2 

294.9 

311.2 

331.0 

Other revenue

215.3 

257.3 

207.8 

199.5 

196.9 

186.8 

 

7 257.5 

7 875.2 

7 848.2 

8 225.5 

8 398.9 

8 481.7 

 

 

 

 

 

 

 

Less Expenses from transactions

 

 

 

 

 

 

Employee expenses2

3 202.0 

3 320.9 

3 393.7 

3 507.8 

3 664.9 

3 733.4 

Superannuation3

410.3 

419.5 

411.5 

425.4 

449.9 

468.0 

Depreciation

412.5 

432.1 

466.4 

497.2 

517.4 

543.8 

Supplies and consumables4

1 723.8 

1 787.0 

1 768.2 

1 630.4 

1 664.5 

1 663.6 

Nominal superannuation interest expense5

129.5 

191.3 

191.0 

191.1 

190.5 

189.7 

Borrowing costs6

48.2 

47.1 

90.0 

138.8 

175.1 

206.0 

Grant and subsidy expenses7

1 978.8 

2 068.6 

1 962.4 

1 780.6 

1 668.3 

1 611.7 

Other expenses

42.2 

64.9 

39.8 

35.0 

36.1 

35.1 

 

7 947.2 

8 331.5 

8 322.8 

8 206.4 

8 366.7 

8 451.2 

 

 

 

 

 

 

 

Equals NET OPERATING BALANCE

(689.8)

(456.3)

(474.6)

19.1 

32.2 

30.5 

 

 

 

 

 

 

 

Plus Other economic flows - included in Operating Result

 

 

 

 

 

 

Gain/(loss) on sale of non-financial assets

13.7 

21.1 

30.5 

84.7 

79.5 

34.7 

Other gains/(losses)

(11.9)

19.8 

23.4 

(14.4)

(18.6)

(14.4)

 

1.8 

40.9 

53.8 

70.3 

60.9 

20.3 

 

 

 

 

 

 

 

Equals Operating Result

(687.9)

(415.3)

(420.8)

89.5 

93.1 

50.8 

 

 

 

 

 

 

 


 

Table 4.1:         General Government Income Statement (continued)

 

2021‑22 

2021‑22 

2022‑23 

2023‑24 

2024‑25 

2025‑26 

 

 

Estimated 

 

Forward 

Forward 

Forward 

 

Budget 

Outcome 

Budget 

Estimate 

Estimate 

Estimate 

 

$m 

$m 

$m 

$m 

$m 

$m 

 

 

 

 

 

 

 

Plus Other economic flows - other movements in Equity

 

 

 

 

 

 

Revaluations of non-financial assets

280.4 

284.1 

282.0 

317.4 

317.4 

317.4 

Revaluation of equity investment in PNFC and PFC sectors8

(181.2)

(52.2)

(51.1)

(63.8)

(45.0)

(98.0)

Movements in superannuation liability9

(866.4)

654.4 

.... 

.... 

.... 

.... 

 

(767.3)

886.2 

230.9 

253.5 

272.4 

219.3 

 

 

 

 

 

 

 

Equals Comprehensive Result

(1 455.2)

470.9 

(189.9)

343.0 

365.5 

270.1 

 

 

 

 

 

 

 

KEY FISCAL AGGREGATES

 

 

 

 

 

 

 

 

 

 

 

 

 

NET OPERATING BALANCE

(689.8)

(456.3)

(474.6)

19.1 

32.2 

30.5 

 

 

 

 

 

 

 

Less Net acquisition of non-financial assets

 

 

 

 

 

 

Purchases of non-financial assets10

795.8 

806.5 

1 176.3 

1 310.9 

1 200.5 

910.7 

Less Sales of non-financial assets

31.9 

39.2 

48.6 

102.9 

97.7 

52.8 

Less Depreciation

412.5 

432.1 

466.4 

497.2 

517.4 

543.8 

 

351.4 

335.1 

661.3 

710.8 

585.4 

314.1 

 

 

 

 

 

 

 

Equals FISCAL BALANCE

(1 041.2)

(791.4)

(1 135.9)

(691.6)

(553.2)

(283.6)

 

 

 

 

 

 

 

Notes:

1.    Detailed information on revenue estimates is provided in chapter 5 of this Budget Paper.

2.    The increase in Employee expenses in 2022-23 primarily reflects the impact of both the Government’s 2022-23 Budget initiatives and other initiatives, including the Government’s 2021 election commitments and previous Budget initiatives.

3.    The change in Superannuation reflects the latest actuarial advice provided by the State’s Actuary. Further information on the Superannuation liability is provided in chapter 7 of this Budget Paper.

4.    The increase in Supplies and consumables in 2022-23 primarily reflects the impact of the Government’s 2022‑23 Budget initiatives which is partially offset by the reduction in other initiative expenditure, including the Government’s 2021-22 Budget initiatives. The decrease in 2023-24 primarily reflects a decline in the Government’s 2022‑23 Budget initiative expenditure together with the cessation of fixed‑term COVID-19 related expenditure.

5.    The increase in Nominal superannuation interest expense in 2022-23 reflects the latest actuarial advice provided by the State’s actuary and includes a change in the discount rate from 1.5 per cent, used in the 2021‑22 Budget, to a rate of 2.5 per cent for the 2022-23 Budget.

6.    The increase in Borrowing costs from 2022‑23 primarily reflects forecast increases in the estimated General Government Sector cash deficit together with forecast increases in the borrowing rate across the Budget and Forward Estimates.

7.    The decrease in Grant and subsidy expenses in 2022‑23 and across the Forward Estimates reflects the impact of a reduction in 2021 election commitment expenditure and a reduction COVID‑19 pandemic related expenditure. This is partially offset in 2022‑23 and 2023‑24 by the impact of the Government’s 2022‑23 Budget initiatives.

8.    Revaluation of equity investment in the PNFC and PFC sectors reflects changes in the net assets of the Public Non‑Financial Corporations and Public Financial Corporation sectors. Refer to appendix 1 of this Budget Paper for more information on the PNFC and PFC sectors.

9.    Details of the change in the Movements in superannuation liability is provided in chapter 7 of this Budget Paper.

10.  Detailed information on infrastructure investment is provided in chapter 6 of this Budget Paper.


 

Table 4.2:         General Government Balance Sheet as at 30 June

 

2022 

2022 

2023 

2024 

2025 

2026 

 

 

Estimated 

 

Forward 

Forward 

Forward 

 

Budget 

Outcome 

Budget 

Estimate 

Estimate 

Estimate 

 

$m 

$m 

$m 

$m 

$m 

$m 

 

 

 

 

 

 

 

Assets

 

 

 

 

 

 

Financial assets

 

 

 

 

 

 

Cash and deposits1

1 144.0 

624.2 

624.6 

630.2 

541.6 

591.6 

Investments1

311.0 

872.2 

867.2 

903.2 

881.5 

856.3 

Equity investments in PNFC and PFC sectors2

4 928.6 

5 210.0 

5 445.2 

5 560.1 

5 632.5 

5 606.6 

Other equity investments3

140.9 

140.9 

201.4 

256.9 

262.4 

267.9 

Receivables

345.4 

409.8 

407.3 

405.4 

403.5 

402.1 

Other financial assets

442.6 

578.5 

596.5 

612.0 

633.9 

640.1 

 

7 312.6 

7 835.5 

8 142.2 

8 367.8 

8 355.5 

8 364.5 

 

 

 

 

 

 

 

Non-financial assets

 

 

 

 

 

 

Land and buildings4

7 771.9 

7 953.5 

8 205.7 

8 576.9 

8 881.3 

9 096.8 

Infrastructure5

6 454.9 

6 254.7 

6 938.9 

7 643.4 

8 295.6 

8 730.0 

Plant and equipment

313.8 

316.8 

342.9 

371.0 

381.9 

388.0 

Heritage and cultural assets

452.2 

466.4 

478.7 

491.0 

503.3 

515.6 

Investment property

3.3 

3.1 

3.2 

3.3 

3.3 

3.3 

Intangibles

72.6 

83.8 

136.9 

188.4 

232.3 

277.5 

Assets held for sale

1.1 

2.2 

2.8 

4.1 

5.5 

3.9 

Lease - right-of-use-assets6

275.2 

375.4 

335.7 

314.6 

278.9 

219.5 

Other non-financial assets7

99.8 

912.3 

910.8 

908.9 

910.9 

908.9 

 

15 444.7 

16 368.2 

17 355.6 

18 501.5 

19 493.0 

20 143.4 

 

 

 

 

 

 

 

Total Assets

22 757.3 

24 203.7 

25 497.8 

26 869.3 

27 848.5 

28 508.0 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

Borrowings8

2 874.1 

2 623.3 

4 125.6 

5 150.9 

5 911.5 

6 359.4 

Lease liabilities6

285.4 

395.1 

360.2 

341.4 

302.8 

267.5 

Superannuation9

9 895.0 

8 412.9 

8 397.6 

8 370.1 

8 314.3 

8 238.1 

Employee entitlements

831.8 

853.9 

871.4 

891.3 

912.4 

930.6 

Payables

199.9 

181.7 

182.5 

186.5 

189.7 

190.5 

Other liabilities

743.5 

777.1 

790.7 

816.3 

739.6 

773.5 

Total Liabilities

14 829.7 

13 244.1 

14 728.0 

15 756.5 

16 370.3 

16 759.6 

 

 

 

 

 

 

 

Net Assets

7 927.6 

10 959.6 

10 769.8 

11 112.8 

11 478.3 

11 748.4 

 

 

 

 

 

 

 


 

Table 4.2:         General Government Balance Sheet as at 30 June (continued)

 

2022 

2022 

2023 

2024 

2025 

2026 

 

 

Estimated 

 

Forward 

Forward 

Forward 

 

Budget 

Outcome 

Budget 

Estimate 

Estimate 

Estimate 

 

$m 

$m 

$m 

$m 

$m 

$m 

 

 

 

 

 

 

 

Equity

 

 

 

 

 

 

Accumulated funds

3 326.2 

5 766.4 

5 345.7 

5 435.2 

5 528.3 

5 579.1 

Asset revaluation reserve

5 581.9 

5 831.2 

6 113.2 

6 430.5 

6 747.9 

7 065.3 

Other revaluation reserves

(980.4)

(638.0)

(689.1)

(753.0)

(797.9)

(896.0)

Total Equity

7 927.6 

10 959.6 

10 769.8 

11 112.8 

11 478.3 

11 748.4 

 

 

 

 

 

 

 

KEY FISCAL AGGREGATES

 

 

 

 

 

 

 

 

 

 

 

 

 

NET WORTH10

7 927.6 

10 959.6 

10 769.8 

11 112.8 

11 478.3 

11 748.4 

 

 

 

 

 

 

 

NET FINANCIAL WORTH11

(7 517.1)

(5 408.6)

(6 585.8)

(7 388.7)

(8 014.8)

(8 395.0)

 

 

 

 

 

 

 

NET FINANCIAL LIABILITIES12

12 445.7 

10 618.6 

12 031.0 

12 948.8 

13 647.2 

14 001.6 

 

 

 

 

 

 

 

NET DEBT13

1 704.4 

1 522.1 

2 994.0 

3 958.9 

4 791.1 

5 179.0 

 

 

 

 

 

 

 

GFS NET DEBT14

1 419.0 

1 126.9 

2 633.8 

3 617.5 

4 488.3 

4 911.5 

 

 

 

 

 

 

 

Notes:

1.    The change in Cash and deposits and Investments in the 2022 Estimated Outcome and over the Forward Estimates period primarily reflects the reclassification of $600 million from Cash to Investments for funds invested with the Tasmanian Public Finance Corporation. The change in Investments also includes the timing of loan advances by the Department of State Growth together with the drawdown of funds invested with the Tasmanian Public Finance Corporation for the TT‑Line Vessel Replacement Fund.

2.    The increase in Equity investments in PNFC and PFC sectors in 2023 and over the Forward Estimates is primarily the result of an increase in net assets for the PNFC Sector. Refer to appendix 1 of this Budget Paper for more information on the PNFC and PFC sectors.

3.    The increase in Other equity investments in 2023 and across the Forward Estimates reflects the Government’s funding support for Tasmanian Water and Sewerage Corporation Pty Ltd’s accelerated infrastructure program.

4.    The increase in Land and buildings reflects the implementation of the Government’s infrastructure program. Further information on infrastructure investment is provided in chapter 6 of this Budget Paper.

5.    The increase in Infrastructure primarily reflects the implementation of the Government’s infrastructure program. Further information on infrastructure investment is provided in chapter 6 of this Budget Paper.

6.    The change in Lease right-of-use assets and Lease liabilities in 2023 and over the Forward Estimate period primarily reflects revised estimates based on 30 June 2021 actuals together with the recognition of additional leases in 2021-22.

7.    The increase in Other non-financial assets in 2022 primarily reflects the recognition of Service Concession assets by the Department of Communities Tasmania in accordance with AASB 1059 Service Concession Assets: Grantors.

8.    The increase in Borrowings as at 30 June 2023 and across the Forward Estimates primarily reflects the increase in borrowings to support the General Government Sector cash deficit.

9.    The decrease in Superannuation reflects the latest actuarial advice provided by the State’s Actuary which includes a change in the discount rate from 1.5 per cent (used in the 2021‑22 Budget) to a rate of 2.5 per cent used in the 2022-23 Budget. Further information on the Superannuation liability is provided in chapter 7 of this Budget Paper.

10.  Net Worth represents Total Assets less Total Liabilities.

11.  Net Financial Worth represents Financial assets less Total Liabilities.

12.  Net Financial Liabilities represents Total Liabilities less Financial assets, excluding Equity investment in PNFC and PFC sectors.

13.  Net Debt represents Borrowings plus Lease liabilities, less the sum of Cash and deposits and Investments.

14.  GFS Net Debt represents Borrowings less the sum of Cash and deposits and Investments. This is equivalent to Net Debt based on the Australian Bureau of Statistics Government Finance Statistics reporting framework, and excludes the impact of Lease liabilities.

Table 4.3:         General Government Cash Flow Statement

 

2021‑22 

2021‑22 

2022‑23 

2023‑24 

2024‑25 

2025‑26 

 

 

Estimated 

 

Forward 

Forward 

Forward 

 

Budget 

Outcome 

Budget 

Estimate 

Estimate 

Estimate 

 

$m 

$m 

$m 

$m 

$m 

$m 

 

 

 

 

 

 

 

Cash flows from operating activities

 

 

 

 

 

 

Cash received from operating activities

 

 

 

 

 

 

Grants received

4 697.6 

5 119.1 

5 111.2 

5 421.6 

5 389.6 

5 487.9 

Taxation

1 448.3 

1 550.4 

1 611.8 

1 712.3 

1 789.3 

1 869.8 

Sales of goods and services

436.9 

437.6 

446.9 

459.9 

471.5 

475.4 

Fines and regulatory fees

107.2 

110.8 

111.3 

116.5 

117.9 

119.4 

Interest received

8.0 

8.0 

28.8 

35.9 

34.9 

36.1 

Dividend, tax and rate equivalents

451.7 

448.7 

353.3 

279.2 

286.0 

321.9 

Other receipts

447.1 

494.8 

454.1 

447.8 

447.1 

437.6 

 

7 596.8 

8 169.4 

8 117.4 

8 473.1 

8 536.2 

8 748.1 

 

 

 

 

 

 

 

Cash payments for operating activities

 

 

 

 

 

 

Employee entitlements

(3 181.9)

(3 298.8)

(3 374.1)

(3 486.8)

(3 642.9)

(3 714.1)

Superannuation

(577.6)

(612.0)

(616.4)

(642.6)

(694.7)

(732.4)

Supplies and consumables

(1 733.7)

(1 793.2)

(1 778.4)

(1 640.3)

(1 673.6)

(1 672.8)

Borrowing costs

(44.0)

(41.0)

(90.1)

(138.9)

(175.2)

(207.2)

Grants and subsidies paid

(1 978.7)

(2 067.5)

(1 962.3)

(1 780.5)

(1 668.2)

(1 611.6)

Other payments

(276.4)

(302.8)

(288.6)

(284.3)

(287.6)

(288.5)

 

(7 792.3)

(8 115.4)

(8 109.8)

(7 973.5)

(8 142.2)

(8 226.5)

 

 

 

 

 

 

 

Net cash flows from operating activities

(195.5)

54.0 

7.6 

499.7 

394.0 

521.5 

 

 

 

 

 

 

 

Cash flows from investing activities

 

 

 

 

 

 

Net cash flows from non-financial assets

 

 

 

 

 

 

Purchases of non-financial assets

(776.2)

(806.8)

(1 166.4)

(1 300.2)

(1 189.8)

(900.0)

Sales of non-financial assets

36.3 

42.9 

45.6 

99.1 

93.9 

49.0 

 

(739.9)

(763.8)

(1 120.8)

(1 201.1)

(1 095.9)

(851.0)

 

 

 

 

 

 

 

Net cash flows from financial assets (policy purposes)

 

 

 

 

 

 

Equity injections

(285.6)

(224.6)

(346.8)

(234.2)

(122.8)

(77.6)

Net advances paid

(129.4)

(90.6)

(36.0)

(36.0)

21.6 

25.2 

Equity disposals

3.6 

3.6 

3.6 

3.6 

3.6 

3.6 

 

(411.4)

(311.6)

(379.3)

(266.6)

(97.6)

(48.8)

 

 

 

 

 

 

 


 

Table 4.3:         General Government Cash Flow Statement (continued)

 

2021‑22 

2021‑22 

2022‑23 

2023‑24 

2024‑25 

2025‑26 

 

 

Estimated 

 

Forward 

Forward 

Forward 

 

Budget 

Outcome 

Budget 

Estimate 

Estimate 

Estimate 

 

$m 

$m 

$m 

$m 

$m 

$m 

 

 

 

 

 

 

 

Net cash flows from financial assets (liquidity management purposes)

 

 

 

 

 

 

Net (purchase)/sale of investments

21.2 

(578.7)

41.0 

.... 

.... 

.... 

 

21.2 

(578.7)

41.0 

.... 

.... 

.... 

 

 

 

 

 

 

 

Net cash flows from investing activities

(1 130.1)

(1 654.1)

(1 459.0)

(1 467.7)

(1 193.5)

(899.8)

 

 

 

 

 

 

 

Net cash flows from financing activities

 

 

 

 

 

 

Net borrowing

1 001.5 

758.0 

1 451.9 

973.6 

710.9 

428.2 

 

1 001.5 

758.0 

1 451.9 

973.6 

710.9 

428.2 

 

 

 

 

 

 

 

Net increase/(decrease) in cash held

(324.1)

(842.1)

0.4 

5.6 

(88.6)

49.9 

 

 

 

 

 

 

 

Cash at the beginning of the year

1 468.1 

1 466.3 

624.2 

624.6 

630.2 

541.6 

Cash at the end of the year

1 144.0 

624.2 

624.6 

630.2 

541.6 

591.6 

 

 

 

 

 

 

 

KEY FISCAL AGGREGATES

 

 

 

 

 

 

 

 

 

 

 

 

 

Net cash flows from operating activities

(195.5)

54.0 

7.6 

499.7 

394.0 

521.5 

Plus Net cash flows from non-financial assets

(739.9)

(763.8)

(1 120.8)

(1 201.1)

(1 095.9)

(851.0)

Equals CASH SURPLUS/(DEFICIT)

(935.4)

(709.8)

(1 113.2)

(701.4)

(701.9)

(329.4)

 

 

 

 

 

 

 


 

Policy and Parameter Statement

Introduction

The Policy and Parameter Statement is a reconciliation of the major changes in the Net Operating Balance and the Fiscal Balance between two points in time.

The changes in the PPS are classified as revenue, expense or net acquisition of non‑financial assets and then further categorised as a policy or parameter change. The classification of a variation as a policy or parameter change is a matter of judgement and it is recognised that there may be some instances where part of a Government initiative may have both policy and parameter components. In exercising judgement, Treasury aims to ensure that Government decisions are made transparent.

Policy Variation

For the purpose of the PPS, a policy variation reflects a specific decision by the Government that has an impact on the Budget and Forward Estimates and is related to a new policy or represents a change in the Government’s existing policy position since the previous Budget. A decision to change a Budget or Forward Estimate item, which is consistent with an existing policy, is not a policy decision.

Parameter Variation

A parameter variation reflects changes to the Budget and Forward Estimates due to the economic environment, the agency operating environment or the timing of a transaction.

Parameter variations will reflect the impact of changes in taxes, grants or other income that do not arise because of a Government decision; and demand and cost variations in agency service delivery, including the provision of indexation. Variations resulting from the rollover of a new Forward Estimate year and changes in accounting policies, such as a change in an agency depreciation policy or the impact on estimates of a change in an Australian Accounting Standard, are classified as parameter variations.

Table 4.4 provides a summary of the policy and parameter changes detailed in Table 4.5 that have impacted the formulation of the 2022‑23 Budget since the 2021‑22 Budget.


 

Table 4.4:         Summary Policy and Parameter Statement, 2022‑23 to 2025‑26

 

2021‑22 

2022‑23 

2023‑24 

2024‑25 

2025‑26 

 

Estimated 

 

Forward 

Forward 

Forward 

 

Outcome 

Budget 

Estimate 

Estimate 

Estimate1 

 

$m 

$m 

$m 

$m 

$m 

Forward Estimates (Net Operating Balance) as per the 2021‑22 Budget (A)

(689.8)

(86.4)

39.4 

126.8 

.... 

 

 

 

 

 

 

Forward Estimates (Fiscal Balance) as per the 2021‑22 Budget (B)

(1 041.2)

(501.3)

(478.1)

(315.4)

.... 

 

 

 

 

 

 

REVENUE

 

 

 

 

 

Policy Decisions

(2.2)

(66.6)

(36.1)

(34.3)

(36.5)

Parameter Adjustments

620.0 

372.1 

484.8 

381.9 

.... 

TOTAL REVENUE ADJUSTMENTS (C)

617.7 

305.5 

448.8 

347.7 

.... 

 

 

 

 

 

 

EXPENSES

 

 

 

 

 

Policy Decisions

254.3 

406.0 

184.9 

162.0 

204.5 

Parameter Adjustments

129.9 

287.7 

284.2 

280.2 

.... 

TOTAL EXPENSE ADJUSTMENTS (D)

384.2 

693.7 

469.0 

442.2 

.... 

 

 

 

 

 

 

NET OPERATING BALANCE (A+C-D)

(456.3)

(474.6)

19.1 

32.2 

30.5 

 

 

 

 

 

 

Less NET ACQUISITION OF NON-FINANCIAL ASSETS

 

 

 

 

 

Purchases of non-financial assets

 

 

 

 

 

Policy Decisions

1.1 

63.8 

66.8 

104.9 

68.8 

Parameter Adjustments

9.6 

214.8 

220.4 

118.1 

.... 

 

10.7 

278.6 

287.1 

223.0 

.... 

 

 

 

 

 

 

Less Sale of non-financial assets

 

 

 

 

 

Policy Decisions

.... 

.... 

.... 

.... 

.... 

Parameter Adjustments

7.4 

(3.8)

51.7 

37.9 

.... 

 

7.4 

(3.8)

51.7 

37.9 

.... 

 

 

 

 

 

 

Less Depreciation - Total Parameter Adjustments

19.6 

36.0 

42.2 

41.8 

.... 

TOTAL NET ACQUISITION OF NON-FINANCIAL ASSETS ADJUSTMENTS (E)

(16.3)

246.4 

193.2 

143.3 

.... 

 

 

 

 

 

 

FISCAL BALANCE (B+C-D-E)

(791.4)

(1 135.9)

(691.6)

(553.2)

(283.6)

 

 

 

 

 

 

Note:

1.    Parameter adjustments for 2025‑26 are not reflected in the Table as the 2025‑26 Forward Estimate was not published in the 2021‑22 Budget. However, policy adjustments are reflected to show their full impact on the Budget and Forward Estimates.


 

Table 4.5:         Policy and Parameter Statement, 2022‑23 to 2025‑26

 

2021‑22 

2022‑23 

2023‑24 

2024‑25 

2025‑26 

 

Estimated 

 

Forward 

Forward 

Forward 

 

Outcome 

Budget 

Estimate 

Estimate 

Estimate1 

 

$m 

$m 

$m 

$m 

$m 

Forward Estimates (Net Operating Balance) as per the 2021‑22 Budget (A)

(689.8)

(86.4)

39.4 

126.8 

.... 

 

 

 

 

 

 

Forward Estimates (Fiscal Balance) as per the 2021‑22 Budget (B)

(1 041.2)

(501.3)

(478.1)

(315.4)

.... 

 

 

 

 

 

 

Revenue from transactions

 

 

 

 

 

Policy Decisions

 

 

 

 

 

Agency Revenue

 

 

 

 

 

Community Support Fund2

.... 

.... 

4.3 

4.3 

4.3 

 

.... 

.... 

4.3 

4.3 

4.3 

Taxation

 

 

 

 

 

Casino Tax and Licence Fees3

.... 

.... 

5.5 

5.4 

5.4 

Duties4

(1.4)

(15.4)

.... 

.... 

.... 

Land Tax5

.... 

(39.0)

(41.9)

(44.0)

(46.2)

Payroll Tax6

(0.9)

.... 

.... 

.... 

.... 

 

(2.2)

(54.4)

(36.4)

(38.6)

(40.8)

Dividend income

 

 

 

 

 

TT-Line Company Pty Ltd7

.... 

(12.3)

(4.0)

.... 

.... 

 

.... 

(12.3)

(4.0)

.... 

.... 

Total Policy Decisions

(2.2)

(66.6)

(36.1)

(34.3)

(36.5)

 

 

 

 

 

 

Parameter Adjustments

 

 

 

 

 

Taxation

 

 

 

 

 

Annual Wagering Levy

.... 

.... 

0.1 

0.1 

.... 

Casino Tax and Licence Fees

2.5 

3.0 

3.4 

3.7 

.... 

Duties

63.9 

46.1 

42.0 

36.7 

.... 

Fire Service Levies

5.2 

4.0 

5.0 

6.0 

.... 

Guarantee Fees

(0.7)

(0.2)

0.8 

2.7 

.... 

Land Tax

0.7 

51.4 

59.0 

62.0 

.... 

Lottery Tax

.... 

0.7 

1.5 

2.3 

.... 

Motor Tax

.... 

.... 

(1.2)

(0.3)

.... 

Motor Vehicle Fire Levy

.... 

0.3 

0.3 

0.3 

.... 

Payroll Tax

32.0 

31.8 

32.4 

33.0 

.... 

Point of Consumption Wagering Tax

0.4 

0.1 

(0.2)

(0.4)

.... 

Total Taxation

103.9 

137.1 

143.1 

146.1 

.... 

 

 

 

 

 

 


 

Table 4.5:         Policy and Parameter Statement, 2022‑23 to 2025‑26 (continued)

 

2021‑22 

2022‑23 

2023‑24 

2024‑25 

2025‑26 

 

Estimated 

 

Forward 

Forward 

Forward 

 

Outcome 

Budget 

Estimate 

Estimate 

Estimate1 

 

$m 

$m 

$m 

$m 

$m 

Dividend, tax and rate equivalent income

 

 

 

 

 

Dividend income

 

 

 

 

 

Aurora Energy Pty Ltd

2.3 

(5.8)

.... 

.... 

.... 

Hydro Tasmania

.... 

30.3 

20.3 

10.4 

.... 

Motor Accidents Insurance Board

(4.3)

(8.8)

(9.6)

(12.6)

.... 

Sustainable Timber Tasmania

1.1 

.... 

.... 

(6.0)

.... 

Tasmanian Networks Pty Ltd

(10.4)

2.7 

(4.9)

9.3 

.... 

Tasmanian Ports Corporation Pty Ltd

.... 

.... 

0.3 

(1.1)

.... 

Tasmanian Public Finance Corporation

0.2 

2.2 

(0.7)

0.7 

.... 

 

(11.1)

20.6 

5.4 

0.6 

.... 

Income tax equivalents

 

 

 

 

 

Aurora Energy Pty Ltd

(1.1)

.... 

.... 

.... 

.... 

Hydro Tasmania

12.1 

12.2 

6.7 

(1.6)

.... 

Motor Accidents Insurance Board

(3.7)

(2.3)

(4.4)

(3.9)

.... 

Public Trustee

(0.1)

.... 

.... 

.... 

.... 

Sustainable Timber Tasmania

.... 

.... 

(2.7)

(2.2)

.... 

Tasmanian Networks Pty Ltd

5.5 

1.2 

8.3 

10.7 

.... 

Tasmanian Ports Corporation Pty Ltd

.... 

(0.4)

(1.0)

(2.0)

.... 

Tasmanian Public Finance Corporation

1.0 

(0.3)

0.3 

0.2 

.... 

TT-Line Company Pty Ltd

(8.9)

1.1 

.... 

1.3 

.... 

 

4.8 

11.5 

7.1 

2.4 

.... 

Rates equivalent payments

 

 

 

 

 

Hydro Tasmania

0.2 

0.2 

0.2 

0.2 

.... 

 

0.2 

0.2 

0.2 

0.2 

.... 

 

 

 

 

 

 

Total Dividend, tax and rate equivalent income

(6.1)

32.3 

12.7 

3.1 

.... 

 

 

 

 

 

 

Interest income

0.1 

17.1 

17.9 

12.6 

.... 

 

 

 

 

 

 

Australian Government Grants

 

 

 

 

 

General Purpose Payments

 

 

 

 

 

GST Revenue

159.5 

11.4 

51.2 

(9.8)

.... 

 

159.5 

11.4 

51.2 

(9.8)

.... 


 

Table 4.5:         Policy and Parameter Statement, 2022‑23 to 2025‑26 (continued)

 

2021‑22 

2022‑23 

2023‑24 

2024‑25 

2025‑26 

 

Estimated 

 

Forward 

Forward 

Forward 

 

Outcome 

Budget 

Estimate 

Estimate 

Estimate1 

 

$m 

$m 

$m 

$m 

$m 

National Partnership Payments

 

 

 

 

 

Community Services (including Disability)

2.9 

2.8 

.... 

.... 

.... 

Education

3.9 

12.9 

12.0 

12.0 

.... 

Environment

15.8 

59.3 

45.4 

38.0 

.... 

Health

135.6 

5.4 

3.3 

.... 

.... 

Housing

0.3 

(5.1)

.... 

.... 

.... 

Infrastructure

36.8 

157.5 

189.5 

147.1 

.... 

Natural Disaster Relief and Recovery Arrangements

2.0 

(1.4)

(1.1)

0.1 

.... 

Other Services

67.9 

(61.2)

6.2 

7.6 

.... 

Skills and Workforce Development

38.8 

(6.7)

2.9 

5.0 

.... 

 

303.9 

163.6 

258.2 

209.7 

.... 

Specific Purpose Payments

 

 

 

 

 

National Health Reform

(1.7)

(21.5)

(22.0)

(7.0)

.... 

Quality Schools, Quality Outcomes

13.0 

14.4 

15.8 

16.2 

.... 

 

11.2 

(7.1)

(6.3)

9.2 

.... 

 

 

 

 

 

 

Other Australian Government Grants

1.1 

9.3 

1.0 

1.3 

.... 

 

 

 

 

 

 

Total Australian Government Grants

475.7 

177.2 

304.1 

210.5 

.... 

 

 

 

 

 

 

Agency Revenue

 

 

 

 

 

Brand Tasmania

0.2 

0.2 

0.2 

0.2 

.... 

Communities Tasmania

6.5 

1.3 

1.3 

1.3 

.... 

Environment Protection Authority

0.8 

0.8 

0.8 

0.8 

.... 

Finance-General

0.7 

(0.5)

(0.6)

(1.0)

.... 

Health

11.5 

0.9 

1.0 

2.3 

.... 

Inland Fisheries Service

.... 

0.1 

0.1 

0.1 

.... 

Justice

3.1 

0.1 

0.1 

0.1 

.... 

Marine and Safety Tasmania

.... 

(0.2)

(0.1)

(0.1)

.... 

Ministerial and Parliamentary Support

0.5 

0.5 

0.5 

0.5 

.... 

Natural Resources and Environment Tasmania

3.9 

3.3 

2.9 

3.1 

.... 

Office of the Governor

0.1 

0.1 

0.1 

0.2 

.... 

Police, Fire and Emergency Management

.... 

0.1 

0.7 

0.6 

.... 

Premier and Cabinet

(8.9)

(8.9)

(8.9)

(8.7)

.... 

Royal Tasmanian Botanical Gardens

.... 

(1.6)

(1.6)

(1.8)

.... 

State Fire Commission

.... 

0.3 

0.3 

0.3 

.... 


 

Table 4.5:         Policy and Parameter Statement, 2022‑23 to 2025‑26 (continued)

 

2021‑22 

2022‑23 

2023‑24 

2024‑25 

2025‑26 

 

Estimated 

 

Forward 

Forward 

Forward 

 

Outcome 

Budget 

Estimate 

Estimate 

Estimate1 

 

$m 

$m 

$m 

$m 

$m 

Agency Revenue (continued)

 

 

 

 

 

State Growth

25.2 

13.3 

10.1 

9.9 

.... 

TasTAFE

0.9 

(1.4)

0.2 

1.8 

.... 

Treasury and Finance

1.9 

(0.1)

(0.2)

(0.2)

.... 

Total Agency Revenue

46.3 

8.3 

7.0 

9.6 

.... 

Total Parameter Adjustments

620.0 

372.1 

484.8 

381.9 

.... 

 

 

 

 

 

 

TOTAL REVENUE FROM TRANSACTIONS ADJUSTMENTS (C)

617.7 

305.5 

448.8 

347.7 

.... 

 

 

 

 

 

 

Expenses from transactions

 

 

 

 

 

Policy Decisions

 

 

 

 

 

Agency Expenditure

 

 

 

 

 

Brand Tasmania

 

 

 

 

 

Tasmanian Ideas Lab

.... 

0.3 

.... 

.... 

.... 

Tasmanian Mark Certification Scheme

.... 

0.1 

0.1 

0.1 

0.1 

 

.... 

0.4 

0.1 

0.1 

0.1 

Communities Tasmania

 

 

 

 

 

2022 Women's National Basketball League Games for the 2021‑22 Season

0.4 

.... 

.... 

.... 

.... 

Additional COVID Support - COVID-care package

0.2 

.... 

.... 

.... 

.... 

Australian Rules History and Heritage Museum

.... 

0.3 

.... 

.... 

.... 

Bethlehem House Emergency Response

.... 

0.2 

.... 

.... 

.... 

Building capacity in Aboriginal Community-Controlled Organisations

2.0 

.... 

.... 

.... 

.... 

Bracknell Hall

.... 

0.4 

.... 

.... 

.... 

CCYP additional staff to support Ashley Youth Detention Centre

.... 

0.1 

0.1 

0.1 

.... 

CCYP additional staff to support the Commission of Inquiry

.... 

0.1 

.... 

.... 

.... 

Continuation of COVID Housing Support Measures

.... 

9.7 

1.6 

.... 

.... 

Continuation of Investment into the Child Safety Service System

.... 

1.5 

1.3 

1.3 

1.3 

Continuation of Transition to Independence (T2i)

.... 

3.0 

3.0 

.... 

.... 

COVID-19 Tasmanian Hotel Quarantine Extension

42.8 

.... 

.... 

.... 

.... 

Cricket Tasmania

.... 

1.1 

1.1 

.... 

.... 

Devonport Men's Shelter

.... 

0.4 

0.7 

0.7 

0.7 


 

Table 4.5:         Policy and Parameter Statement, 2022‑23 to 2025‑26 (continued)

 

2021‑22 

2022‑23 

2023‑24 

2024‑25 

2025‑26 

 

Estimated 

 

Forward 

Forward 

Forward 

 

Outcome 

Budget 

Estimate 

Estimate 

Estimate1 

 

$m 

$m 

$m 

$m 

$m 

Communities Tasmania (continued)

 

 

 

 

 

Equal Remuneration Order

.... 

0.3 

0.2 

0.2 

0.2 

Food Relief Place-based Pilot Program

.... 

0.3 

.... 

.... 

.... 

Housing and Accommodation Support Initiative (HASI)

.... 

0.1 

0.1 

0.1 

.... 

Intensive Family Engagement Services

.... 

4.2 

.... 

.... 

.... 

Ironman Series

.... 

0.3 

0.3 

0.3 

0.3 

Kentish House - additional funding

.... 

0.1 

0.2 

.... 

.... 

MyState Bank Arena/ Glenorchy Indoor Multi-sports Facility Projects

9.6 

.... 

.... 

.... 

.... 

Netball Boost

.... 

0.2 

.... 

.... 

.... 

Out of Home Care Accreditation and Carer's Register

.... 

.... 

1.4 

0.4 

0.4 

Phoenix House

.... 

0.1 

.... 

.... 

.... 

Private Rental Incentives Program

.... 

3.3 

4.0 

2.0 

.... 

Reclink

.... 

0.1 

0.1 

.... 

.... 

Response to Many Colours One Direction Program Review

.... 

2.0 

.... 

.... 

.... 

Safeguarding Volunteering

.... 

0.2 

0.2 

.... 

.... 

Securing the Hobart Show for 2021

0.3 

.... 

.... 

.... 

.... 

Seniors Week and Active Ageing Plan

.... 

0.3 

0.4 

0.3 

0.3 

Silverdome Upgrade JackJumpers Scoring System

0.5 

.... 

.... 

.... 

.... 

Sport Development Funding for State Organisations

.... 

0.3 

.... 

.... 

.... 

St Helens Pump Track

0.1 

0.4 

.... 

.... 

.... 

Tasmania Basketball Stadium Upgrade

0.3 

.... 

.... 

.... 

.... 

Tasmanian Bike Collective

.... 

0.1 

0.1 

.... 

.... 

Tasmanian Closing the Gap Implementation Plan

.... 

2.0 

.... 

.... 

.... 

Tasmanian Disability Services Commissioner

.... 

0.1 

0.1 

0.1 

0.1 

Tasmanian Multicultural Policy and Action Plan

.... 

0.2 

.... 

.... 

.... 

Tasmanian Women's Strategy 2022‑27

.... 

0.2 

0.2 

0.2 

0.2 

Tasmania's Third Family and Sexual Violence Action Plan

.... 

12.5 

.... 

.... 

.... 

Women and Girls in Sport Strategy

.... 

0.2 

0.2 

0.2 

0.2 

Youth Justice System Reform

.... 

0.7 

0.7 

.... 

.... 

Youth Network of Tasmania

.... 

0.2 

.... 

.... 

.... 

 

56.1 

44.6 

15.8 

5.8 

3.7 


 

Table 4.5:         Policy and Parameter Statement, 2022‑23 to 2025‑26 (continued)

 

2021‑22 

2022‑23 

2023‑24 

2024‑25 

2025‑26 

 

Estimated 

 

Forward 

Forward 

Forward 

 

Outcome 

Budget 

Estimate 

Estimate 

Estimate1 

 

$m 

$m 

$m 

$m 

$m 

Education

 

 

 

 

 

Additional Education Measures to Keep Tasmanians Safe

8.0 

7.0 

.... 

.... 

.... 

Continuation of Contemporary Library Resources

.... 

0.8 

0.8 

0.8 

0.8 

Electrical Switchboard Maintenance

.... 

2.0 

2.0 

2.0 

2.0 

Non-government Schools - General Education Grants

.... 

3.9 

4.2 

4.3 

7.1 

Outdoor Learning Areas

.... 

10.0 

.... 

.... 

.... 

Safeguarding Children and Young People - Teacher’s Registration Board

.... 

0.4 

0.4 

.... 

.... 

 

8.0 

24.0 

7.4 

7.0 

9.8 

Environment Protection Authority

 

 

 

 

 

Additional Resources for EPA Tasmania

0.6 

2.0 

2.0 

2.0 

2.0 

EPA Rent for New Premises in Hobart

0.2 

0.5 

0.5 

0.5 

0.5 

 

0.8 

2.5 

2.5 

2.5 

2.5 

Finance-General

 

 

 

 

 

COVID-19 Tourism, Hospitality and Ancillary Industries Support Grant

2.0 

.... 

.... 

.... 

.... 

First Home Owners Grant Extension

.... 

11.9 

9.6 

.... 

.... 

Metro Tasmania JackJumpers Sponsorship Grant

0.3 

.... 

.... 

.... 

.... 

Payroll Tax Assistance (Trainees, Apprentices & Youth) Extension

.... 

0.8 

3.3 

5.2 

2.5 

Provision for Continuation of Time Limited Programs8

.... 

.... 

40.0 

60.0 

80.0 

Tas Irrigation - Grant Funding

.... 

12.2 

4.0 

4.0 

4.0 

Treasurer's Reserve Allocation9

.... 

100.0 

.... 

.... 

.... 

 

2.3 

124.9 

56.9 

69.2 

86.5 

Health

 

 

 

 

 

Additional Paramedic Crews - Hobart and Launceston10

.... 

.... 

.... 

.... 

3.5 

Allied Health Education and Training Program

.... 

1.5 

1.5 

1.5 

1.5 

Ambulance Tasmania - Upgrade Huonville and Sorell Double Branch Stations to Career Stations

.... 

1.7 

1.7 

1.7 

1.7 

Community Based Health Care10

.... 

.... 

.... 

.... 

5.8 

Correctional Primary Health Services

.... 

1.5 

2.0 

2.0 

2.0 

COVID-19 - Health Managed Costs

125.0 

.... 

.... 

.... 

.... 

Demand - Major Hospitals

.... 

50.0 

.... 

.... 

.... 

 

 

Table 4.5:         Policy and Parameter Statement, 2022‑23 to 2025‑26 (continued)

 

2021‑22 

2022‑23 

2023‑24 

2024‑25 

2025‑26 

 

Estimated 

 

Forward 

Forward 

Forward 

 

Outcome 

Budget 

Estimate 

Estimate 

Estimate1 

 

$m 

$m 

$m 

$m 

$m 

Health (continued)

 

 

 

 

 

Drug Education Network

.... 

0.2 

0.2 

0.2 

0.2 

Emergency Mental Health Co-response model (PACER) 10

.... 

.... 

3.0 

3.0 

3.0 

Home and Community Based Palliative Care10

.... 

.... 

.... 

.... 

3.0 

Mental Health Integration and Reform

.... 

3.2 

3.3 

.... 

.... 

Mersey Community Hospital - Rural Medical Workforce Centre10

.... 

.... 

.... 

.... 

1.0 

Muscular Dystrophy Association of Tasmania

.... 

0.1 

0.1 

.... 

.... 

New Paramedics10

.... 

.... 

.... 

.... 

7.0 

North West Regional Hospital Second Linear Accelerator10

.... 

.... 

.... 

.... 

2.3 

Older Persons Mental Health Services (Roy Fagan Centre Review)

.... 

2.5 

4.0 

6.0 

8.0 

Oral Health - Reduce Waiting List

.... 

1.5 

.... 

.... 

.... 

Outpatient Transformation Program

.... 

1.8 

1.8 

1.8 

1.8 

Public Private Partnerships to deliver care sooner

.... 

12.2 

.... 

.... 

.... 

Reform Agenda for the Alcohol and Drug Sector in Tasmania

.... 

3.7 

3.8 

.... 

.... 

Rethink 2020‑2025

.... 

0.5 

0.5 

0.5 

.... 

Royal Flying Doctor Service - Regional Oral Health Support

.... 

0.3 

.... 

.... 

.... 

Royal Hobart Hospital - New Angiography Suite10

.... 

.... 

.... 

.... 

0.3 

Rural Hospital Boost - additional staff10

.... 

.... 

.... 

.... 

1.0 

Safe Staffing Model for Tasmanian District Hospitals10

.... 

.... 

.... 

.... 

4.4 

Supporting Access to Cutting Edge Treatments for Children with Cancer

.... 

0.6 

.... 

.... 

.... 

 

125.0 

81.2 

21.8 

16.7 

46.4 

Integrity Commission

 

 

 

 

 

Education and Oversight Functions

.... 

0.2 

0.2 

0.2 

0.2 

 

.... 

0.2 

0.2 

0.2 

0.2 

Justice

 

 

 

 

 

Child and Youth Safe Organisations Framework

.... 

0.8 

0.8 

0.8 

.... 

Commission of Inquiry - Whole-of-Government Response Unit

.... 

2.2 

.... 

.... 

.... 

ICT Investment and Uplift

.... 

2.2 

2.2 

2.2 

2.2 

Safe at Home Family Violence Service System

.... 

4.9 

.... 

.... 

.... 

Table 4.5:         Policy and Parameter Statement, 2022‑23 to 2025‑26 (continued)

 

2021‑22 

2022‑23 

2023‑24 

2024‑25 

2025‑26 

 

Estimated 

 

Forward 

Forward 

Forward 

 

Outcome 

Budget 

Estimate 

Estimate 

Estimate1 

 

$m 

$m 

$m 

$m 

$m 

Justice (continued)

 

 

 

 

 

Southern Remand Centre - Additional Operational Funding

.... 

3.5 

3.5 

3.5 

3.5 

Tasmanian Civil and Administrative Tribunal (TASCAT)

.... 

1.9 

1.9 

1.9 

1.9 

Workers Memorial Park

.... 

0.2 

.... 

.... 

.... 

WorkSafe Inspectorate Capability

.... 

0.8 

.... 

.... 

.... 

 

.... 

16.3 

8.4 

8.4 

7.5 

Legislature-General

 

 

 

 

 

Human Resource Specialists - Parliament

.... 

0.3 

0.3 

0.3 

0.3 

 

.... 

0.3 

0.3 

0.3 

0.3 

Ministerial and Parliamentary Support

 

 

 

 

 

Supporting Executive Government Processes

.... 

1.3 

1.3 

1.3 

1.3 

 

.... 

1.3 

1.3 

1.3 

1.3 

Natural Resources and Environment Tasmania

 

 

 

 

 

Aboriginal Heritage Register

.... 

0.1 

0.1 

.... 

.... 

Bass Strait Islands Biosecurity Officers

0.2 

0.3 

0.3 

0.3 

0.4 

Border and Biosecurity Control Costs

.... 

3.5 

.... 

.... 

.... 

Cadet Stewards Program

.... 

0.2 

0.2 

0.2 

0.2 

Cultural Burning Support

.... 

0.3 

0.3 

0.3 

0.3 

EPA Tasmania Separation

0.4 

.... 

.... 

.... 

.... 

Implementation of National Electronic Conveyancing

.... 

0.5 

0.5 

.... 

.... 

Implementation of TWWHA Biosecurity Strategy

.... 

0.9 

0.8 

0.9 

0.8 

Implementation of Wild Fallow Deer Management

.... 

0.4 

0.4 

0.6 

0.5 

Maintaining Frontline Rangers

.... 

2.0 

2.0 

2.0 

2.0 

National Trust Support

.... 

0.3 

.... 

.... 

.... 

National Water Grid Authority Science Program

.... 

0.3 

0.1 

0.1 

.... 

Reserve Activity Assessment Reforms Project

1.3 

2.0 

1.5 

1.5 

1.5 

Resource Security in the Forestry Sector

.... 

0.2 

.... 

.... 

.... 

ShellMAP Industry Market Development

.... 

0.1 

0.1 

0.1 

0.1 

Ten Year Salmon Plan

0.4 

0.4 

.... 

.... 

.... 

Traveller Management System

.... 

0.2 

.... 

.... 

.... 

Wellington Park Management Trust

.... 

0.3 

0.3 

0.4 

0.3 

 

2.2 

12.0 

6.6 

6.3 

6.1 

Office of the Director of Public Prosecutions

 

 

 

 

 

Additional Resourcing for the DPP

.... 

0.1 

0.1 

0.1 

0.1 

 

.... 

0.1 

0.1 

0.1 

0.1 


 

Table 4.5:         Policy and Parameter Statement, 2022‑23 to 2025‑26 (continued)

 

2021‑22 

2022‑23 

2023‑24 

2024‑25 

2025‑26 

 

Estimated 

 

Forward 

Forward 

Forward 

 

Outcome 

Budget 

Estimate 

Estimate 

Estimate1 

 

$m 

$m 

$m 

$m 

$m 

Office of the Governor

 

 

 

 

 

Additional Resourcing - IT position

.... 

0.1 

0.1 

0.1 

0.1 

Establishment Funding Increase

.... 

0.1 

0.1 

0.1 

0.2 

 

.... 

0.3 

0.3 

0.3 

0.3 

Office of the Ombudsman

 

 

 

 

 

Health Complaints Commissioner Funding - Patient rights and public safety

.... 

0.3 

0.3 

0.3 

0.3 

Scoping of OPCAT business operation requirements

.... 

0.3 

.... 

.... 

.... 

 

.... 

0.7 

0.3 

0.3 

0.3 

Police, Fire and Emergency Management

 

 

 

 

 

COVID-19 Coordination Centre

.... 

3.0 

.... 

.... 

.... 

Emergency Dispatching, Messaging and Alerting Project

.... 

0.5 

.... 

.... 

.... 

Glock Pistol Replacement

.... 

0.3 

0.3 

0.2 

.... 

Multidisciplinary Centres

.... 

4.7 

7.1 

.... 

.... 

New Enterprise Bargaining Agreement - Police

.... 

3.6 

3.7 

3.8 

3.8 

Remote Area Teams

.... 

0.2 

0.2 

0.2 

0.2 

 

.... 

12.3 

11.2 

4.1 

4.0 

Premier and Cabinet

 

 

 

 

 

COVID-19 Public Health Hotline

.... 

3.0 

.... 

.... 

.... 

Future of Local Government

.... 

1.0 

0.6 

.... 

.... 

Hillcrest Primary School incident - community assistance

1.0 

.... 

.... 

.... 

.... 

Literacy Advisory Panel

.... 

0.4 

.... 

.... 

.... 

Pathway to Truth-Telling and Treaty

0.5 

0.5 

.... 

.... 

.... 

Planning System Reforms

.... 

0.7 

0.6 

0.4 

0.4 

Premier's Fund for Children and Young People

0.8 

0.3 

0.5 

.... 

.... 

Recovery Tasmania

.... 

0.2 

0.2 

.... 

.... 

Royal Commission into National Natural Disaster - Tasmania's Participation

.... 

2.1 

2.1 

0.7 

.... 

Service Tasmania ICT

.... 

0.8 

0.6 

0.6 

0.6 

State Service Act Review:

 

 

 

 

 

Building Shared Capability for Serious Investigations

.... 

0.2 

.... 

.... 

.... 

Changes to the State Service Act 2000 and Employment Directions

.... 

0.2 

0.2 

.... 

.... 


 

Table 4.5:         Policy and Parameter Statement, 2022‑23 to 2025‑26 (continued)

 

2021‑22 

2022‑23 

2023‑24 

2024‑25 

2025‑26 

 

Estimated 

 

Forward 

Forward 

Forward 

 

Outcome 

Budget 

Estimate 

Estimate 

Estimate1 

 

$m 

$m 

$m 

$m 

$m 

Premier and Cabinet (continued)

 

 

 

 

 

Improving the Right To Information Process

.... 

0.3 

0.3 

.... 

.... 

State Service Review Implementation Coordination

.... 

0.4 

0.4 

0.2 

.... 

TasALERT

.... 

.... 

0.3 

.... 

.... 

 

2.3 

9.9 

5.7 

1.9 

1.0 

Royal Tasmanian Botanical Gardens

 

 

 

 

 

Additional Operating Support

.... 

0.2 

0.2 

0.2 

0.2 

Review of the Strategic Master Plan

.... 

0.3 

.... 

.... 

.... 

 

.... 

0.5 

0.2 

0.2 

0.2 

State Growth

 

 

 

 

 

Additional AFL games

2.6 

.... 

.... 

.... 

.... 

AFL Team Task Force and Stadium Feasibility Study

.... 

1.3 

.... 

.... 

.... 

Ancillary Dwelling Grant Program Extension

.... 

2.5 

.... 

.... 

.... 

Automated Traffic Enforcement

.... 

1.3 

4.6 

3.4 

.... 

Coastal Pathway - Don to Leith

0.6 

.... 

.... 

.... 

.... 

COVID-19 Southern Tasmania Lockdown Business Support Program

3.0 

.... 

.... 

.... 

.... 

COVID-19 Supercharged Micro and Small Business – Border Closure Critical Support Grant

40.0 

.... 

.... 

.... 

.... 

Cricket Australia - Ashes Test

4.0 

.... 

.... 

.... 

.... 

Derwent Ferry Service

.... 

8.1 

4.8 

3.0 

3.0 

Glenora Road Upgrade

.... 

1.0 

.... 

.... 

.... 

Headworks Holiday - Doubling Residential Land Rebate

.... 

15.0 

.... 

.... 

.... 

Inbound Tourism Support

3.0 

2.0 

.... 

.... 

.... 

Infrastructure Tasmania Operational Funding

.... 

1.0 

1.0 

.... 

.... 

Job Trainer Extension

2.5 

8.0 

.... 

.... 

.... 

King Island Scheelite / Group 6 Metals

.... 

1.0 

.... 

.... 

.... 

Launceston City Deal Extension and Northern Cities Initiatives

.... 

0.2 

0.3 

.... 

.... 

Motorsports Tasmania

.... 

0.5 

.... 

.... 

.... 

MRT - Support for Mining, Exploration and Quarrying Sectors

.... 

0.2 

0.2 

0.2 

0.2 

Port Services Regulator Review

0.6 

0.2 

.... 

.... 

.... 


 

Table 4.5:         Policy and Parameter Statement, 2022‑23 to 2025‑26 (continued)

 

2021‑22 

2022‑23 

2023‑24 

2024‑25 

2025‑26 

 

Estimated 

 

Forward 

Forward 

Forward 

 

Outcome 

Budget 

Estimate 

Estimate 

Estimate1 

 

$m 

$m 

$m 

$m 

$m 

State Growth (continued)

 

 

 

 

 

Skills Attraction - High VIS Army continuation

.... 

0.5 

0.5 

.... 

.... 

Small Business Customer Service Project Support

.... 

0.1 

.... 

.... 

.... 

Stadiums Tasmania

.... 

0.5 

1.0 

.... 

.... 

Strategic Freight Routes - Maintenance

.... 

19.0 

20.5 

21.0 

21.0 

Tasmanian Literary Prize

.... 

0.1 

.... 

0.1 

.... 

Tasmanian Museum and Art Gallery - Operational Support

.... 

0.3 

0.3 

0.3 

0.3 

Tasmanian Museum and Art Gallery Vision

.... 

0.1 

.... 

.... 

.... 

Tasmanian Space Technology Seed Fund

.... 

0.5 

.... 

.... 

.... 

Taste of Summer

1.4 

.... 

.... 

.... 

.... 

TMAG COVID-19 Safety Measures

.... 

0.2 

.... 

.... 

.... 

Trade and Investment Mission Plan 2024

.... 

1.0 

0.8 

.... 

.... 

 

57.7 

64.5 

33.9 

27.9 

24.4 

Tasmanian Audit Office

 

 

 

 

 

Implementation of Data Analytics

.... 

0.3 

0.3 

0.3 

0.4 

 

.... 

0.3 

0.3 

0.3 

0.4 

TasTAFE

 

 

 

 

 

Support for students and additional TasTAFE teachers

.... 

2.0 

2.6 

1.2 

1.2 

Virtual Campus/Student Management System Business Case

.... 

0.5 

.... 

.... 

.... 

 

.... 

2.5 

2.6 

1.2 

1.2 

Tourism Tasmania

 

 

 

 

 

Securing Recovery and Maximising Tasmania's Visitor Economy Future

.... 

3.0 

3.0 

2.0 

2.0 

 

.... 

3.0 

3.0 

2.0 

2.0 

Treasury and Finance

 

 

 

 

 

eInvoicing Adoption by Tasmanian Government Agencies

.... 

1.0 

0.3 

.... 

.... 

Government Boiler Replacement Program

.... 

1.0 

3.0 

3.0 

3.0 

Public Trustee Community Service Obligation

.... 

1.1 

1.1 

1.1 

1.1 

Public Trustee Review Recommendations

.... 

1.2 

1.2 

1.0 

1.0 

Transition to Electric Vehicles

.... 

.... 

0.5 

0.8 

1.0 

 

.... 

4.2 

6.0 

5.8 

6.1 

 

 

 

 

 

 

Total Policy Decisions

254.3 

406.0 

184.9 

162.0 

204.5 

 

 

 

 

 

 


 

Table 4.5:         Policy and Parameter Statement, 2022‑23 to 2025‑26 (continued)

 

2021‑22 

2022‑23 

2023‑24 

2024‑25 

2025‑26 

 

Estimated 

 

Forward 

Forward 

Forward 

 

Outcome 

Budget 

Estimate 

Estimate 

Estimate1 

 

$m 

$m 

$m 

$m 

$m 

Parameter Adjustments

 

 

 

 

 

Borrowing costs

(1.1)

9.3 

32.4 

60.7 

.... 

Depreciation

19.6 

36.0 

42.2 

41.8 

.... 

Nominal superannuation interest expense

61.8 

61.4 

61.8 

61.7 

.... 

 

 

 

 

 

 

Agency Expenditure

 

 

 

 

 

Brand Tasmania

(0.2)

0.5 

0.2 

0.2 

.... 

Communities Tasmania

(66.3)

97.1 

19.8 

11.1 

.... 

Education

27.0 

33.0 

37.9 

44.2 

.... 

Environment Protection Authority

1.5 

0.2 

0.2 

0.4 

.... 

Finance-General

(60.8)

(69.5)

9.2 

4.9 

.... 

Health

55.8 

0.7 

(7.3)

7.1 

.... 

House of Assembly

.... 

.... 

0.1 

0.1 

.... 

Inland Fisheries Service

(0.2)

0.2 

0.2 

0.2 

.... 

Integrity Commission

.... 

.... 

.... 

.... 

.... 

Justice

38.1 

14.9 

6.9 

7.7 

.... 

Legislative Council

0.1 

0.1 

0.2 

0.2 

.... 

Legislature-General

.... 

.... 

0.1 

0.1 

.... 

Marine and Safety Tasmania

(1.5)

1.8 

1.9 

(0.1)

.... 

Ministerial and Parliamentary Support

0.9 

0.5 

0.6 

0.7 

.... 

Natural Resources and Environment Tasmania

29.3 

10.7 

7.7 

5.6 

.... 

Office of the Director of Public Prosecutions

.... 

0.1 

0.1 

0.1 

.... 

Office of the Governor

0.2 

.... 

.... 

.... 

.... 

Office of the Ombudsman

(0.5)

0.4 

.... 

.... 

.... 

Police, Fire and Emergency Management

12.9 

8.0 

9.3 

9.1 

.... 

Premier and Cabinet

69.1 

(1.3) 

(6.5)

(6.4)

.... 

Royal Tasmanian Botanical Gardens

.... 

(1.0)

(1.3)

(1.3)

.... 

State Fire Commission

1.3 

8.2 

7.8 

7.8 

.... 

State Growth

(46.3)

64.6 

48.8 

19.9 

.... 

Tasmanian Audit Office

.... 

0.1 

0.1 

0.1 

.... 

TasTAFE

(2.4)

5.8 

3.5 

2.5 

.... 

Tourism Tasmania

(6.1)

7.2 

(0.7)

(0.6)

.... 

Treasury and Finance11

(6.0)

(0.8)

9.3 

2.5 

.... 

Other12

3.7 

(0.4)

(0.4)

(0.3)

.... 

Total Agency Expenditure

49.7 

181.0 

147.8 

116.0 

.... 

Total Parameter Adjustments

129.9 

287.7 

284.2 

280.2 

.... 


 

Table 4.5:         Policy and Parameter Statement, 2022‑23 to 2025‑26 (continued)

 

2021‑22 

2022‑23 

2023‑24 

2024‑25 

2025‑26 

 

Estimated 

 

Forward 

Forward 

Forward 

 

Outcome 

Budget 

Estimate 

Estimate 

Estimate1 

 

$m 

$m 

$m 

$m 

$m 

 

 

 

 

 

 

TOTAL EXPENSES FROM TRANSACTIONS ADJUSTMENTS (D)

384.2 

693.7 

469.0 

442.2 

.... 

 

 

 

 

 

 

NET OPERATING BALANCE (A+C-D)

(456.3)

(474.6)

19.1 

32.2 

30.5 

 

 

 

 

 

 

Less NET ACQUISITION OF NON-FINANCIAL ASSETS

 

 

 

 

 

Purchases of non-financial assets from transactions

 

 

 

 

 

Policy Decisions13

 

 

 

 

 

Communities Tasmania

 

 

 

 

 

New Housing Package

.... 

.... 

5.0 

10.0 

20.0 

Youth Justice Facilities

.... 

2.5 

17.5 

20.0 

.... 

 

.... 

2.5 

22.5 

30.0 

20.0 

Education

 

 

 

 

 

Glen Dhu Pool

.... 

0.3 

1.7 

.... 

.... 

Year 7‑12 Implementation Plan - Capital

.... 

1.5 

.... 

.... 

.... 

 

.... 

1.8 

1.7 

.... 

.... 

Health

 

 

 

 

 

Digital Health Transformation

.... 

20.0 

30.0 

30.0 

30.0 

 

.... 

20.0 

30.0 

30.0 

30.0 

Justice

 

 

 

 

 

Prison Infrastructure - Mobile Duress Alarm System Replacement

.... 

3.6 

.... 

.... 

.... 

 

.... 

3.6 

.... 

.... 

.... 

Natural Resources and Environment Tasmania

 

 

 

 

 

Kanunnah Bridge Strengthening

1.1 

1.0 

.... 

.... 

.... 

National Parks - Maintenance Boost (Continuation)

.... 

1.0 

1.0 

1.0 

1.0 

 

1.1 

2.0 

1.0 

1.0 

1.0 

Police, Fire and Emergency Management

 

 

 

 

 

Automated Regional Sandbag Filling Machines

.... 

0.2 

.... 

.... 

.... 

Automatic Vehicle Location Upgrade Project

.... 

.... 

4.7 

0.8 

0.8 

Crackdown on Antisocial Driving

.... 

0.1 

0.1 

0.1 

0.1 

Forensic Science Technology Uplift

.... 

2.3 

1.2 

0.1 

0.1 

Multidisciplinary Centres

.... 

3.3 

.... 

.... 

.... 

Operationalise Sorell Emergency Services Hub

.... 

0.4 

.... 

.... 

.... 

Rosebery Police Station

.... 

0.3 

0.7 

.... 

.... 

 

.... 

6.6 

6.7 

1.0 

0.9 


 

Table 4.5:         Policy and Parameter Statement, 2022‑23 to 2025‑26 (continued)

 

2021‑22 

2022‑23 

2023‑24 

2024‑25 

2025‑26 

 

Estimated 

 

Forward 

Forward 

Forward 

 

Outcome 

Budget 

Estimate 

Estimate 

Estimate1 

 

$m 

$m 

$m 

$m 

$m 

State Growth

 

 

 

 

 

Dial Regional Sports Complex

.... 

.... 

5.0 

20.0 

.... 

New Bridgewater Bridge14

.... 

4.6 

(0.1)

22.9 

16.9 

Northern Suburbs Multi-Sports Facility

.... 

14.7 

.... 

.... 

.... 

 

.... 

19.3 

4.9 

42.9 

16.9 

TasTAFE

 

 

 

 

 

COVID-19 - Infrastructure Improvements

.... 

3.0 

.... 

.... 

.... 

Water and Energy Trades Centre of Excellence

.... 

5.0 

.... 

.... 

.... 

 

.... 

8.0 

.... 

.... 

.... 

Total Policy Decisions

1.1 

63.8 

66.8 

104.9 

68.8 

 

 

 

 

 

 

Parameter Adjustments

 

 

 

 

 

Communities Tasmania

14.9 

50.2 

33.5 

(11.0)

.... 

Education

(8.0)

(10.2)

(9.1)

3.5 

.... 

Finance-General

(2.3)

1.9 

(0.3)

2.1 

.... 

Health

(12.6)

(5.1)

(5.3)

11.4 

.... 

Inland Fisheries Service

.... 

(0.2)

(0.1)

(0.1)

.... 

Justice

(8.6)

0.1 

(0.8)

10.8 

.... 

Legislature-General

.... 

0.2 

.... 

.... 

.... 

Marine and Safety Tasmania

2.0 

(0.8)

.... 

.... 

.... 

Natural Resources and Environment Tasmania

(6.0)

(6.2)

13.7 

4.1 

.... 

Office of the Ombudsman

0.1 

.... 

.... 

.... 

.... 

Police, Fire and Emergency Management

3.9 

4.6 

(7.9)

.... 

.... 

Premier and Cabinet

(1.0)

0.5 

(0.1)

(0.1)

.... 

Royal Tasmanian Botanical Gardens

.... 

(2.6)

2.4 

.... 

.... 

State Fire Commission

(0.6)

0.1 

0.4 

0.8 

.... 

State Growth

63.5 

184.0 

182.0 

92.7 

.... 

TasTAFE

(35.0)

(3.3)

8.8 

0.8 

.... 

Treasury and Finance

(0.8)

1.5 

3.3 

3.0 

.... 

Total Parameter Adjustments

9.6 

214.8 

220.4 

118.1 

.... 

 

 

 

 

 

 


 

Table 4.5:         Policy and Parameter Statement, 2022‑23 to 2025‑26 (continued)

 

2021‑22 

2022‑23 

2023‑24 

2024‑25 

2025‑26 

 

Estimated 

 

Forward 

Forward 

Forward 

 

Outcome 

Budget 

Estimate 

Estimate 

Estimate1 

 

$m 

$m 

$m 

$m 

$m 

 

 

 

 

 

 

Total Purchases of non-financial assets from transactions (E)

10.7 

278.6 

287.1 

223.0 

.... 

 

 

 

 

 

 

Less Total Sale of non-financial assets from transactions (F)

7.4 

(3.8)

51.7 

37.9 

.... 

 

 

 

 

 

 

Depreciation - Total Parameter Adjustments (G)

19.6 

36.0 

42.2 

41.8 

.... 

 

 

 

 

 

 

TOTAL NET ACQUISITION OF NON-FINANCIAL ASSETS FROM TRANSACTIONS ADJUSTMENTS (H) (E - F - G)

(16.3)

246.4 

193.2 

143.3 

.... 

 

 

 

 

 

 

FISCAL BALANCE (B + C - D - H)

(791.4)

(1 135.9)

(691.6)

(553.2)

(283.6)

 

 

 

 

 

 

Notes:

1.    Parameter adjustments for 2025-26 are not reflected in the Table as the 2025-26 Forward Estimate was not published in the 2021-22 Budget. However, policy adjustments are reflected to show their full impact on the Budget and Forward Estimates.

2.    The introduction of the Community Support Fund reflects the reforms to the Community Support Levy under the Gaming Control Amendment (Future Gaming Market) Act 2021 that will commence on 1 July 2023. 

3.    The increase in Casino Tax and Licence Fees reflects the reforms to the gaming market which will commence on 1 July 2023. The changes from the Gaming Control Amendment (Future Gaming Market) Act 2021 affect casino licence fees and tax rates for keno, electronic gaming machines, table gaming and the new fully automated table games.

4.    The decrease in Duties reflects the extension of the First Home Buyer and Pensioner downsizing duty concessions for a further 12 months from 1 July 2022 and the decision to increase the dutiable value cap from $500 000 to $600 000. The decrease in 2021-22 reflects that the increased cap applies retrospectively from 1 January 2022.

5.    The decrease in Land Tax reflects the increase to the tax free threshold from $50 000 to $100 000; the increase to the threshold for the top tax rate from $400 000 to $500 000; and the reduction in the rate applying to the $100 000 to $500 000 band from 0.55 per cent to 0.45 per cent.

6.    The decrease in Payroll Tax reflects the completion of the Payroll Tax waiver for tourism, hospitality and ancillary industries impacted by border closures, which ceased on 31 December 2021.

7.    The decrease in TT-Line’s dividends in 2022-23 and 2023-24 reflects the impact of the retention of dividends to support the replacement of its vessels.

8.    The Provision for Continuation of Time Limited Programs reflects funding to be allocated to agencies for the continuation of time limited programs over the Forward Estimates.

9.    The Treasurer’s Reserve has been increased in 2022‑23 to meet unexpected COVID-19 pandemic and other costs which could not be reasonably foreseen at the time of developing the 2022‑23 Budget.

10.  This initiative was previously announced in the 2021‑22 Budget. Funding is provided in the 2022‑23 Budget for it to continue on an ongoing basis.

11.  The increase from 2023‑24 includes expenditure associated with the introduction of the Community Support Fund.

12.  The movement in Other primarily reflects adjustments to cost estimates associated with the State’s superannuation expense and liability.

13.  Further information on Purchases of non-financial assets from transactions policy decisions is provided in chapter 6 of the Budget Paper.

14.  Funding for the New Bridgewater Bridge includes changes to cash flows of existing funding together with additional State funding.

 


 

In addition to the notes provided above, further information in relation to the 2022‑23 Budget and Forward Estimates and the variations detailed in the Policy and Parameter Statement, is provided elsewhere in the Budget Papers. In particular:

·       Chapter 5 of this Budget Paper includes background information in relation to Budget revenue estimates including in relation to GST, Australian Government funding, State Taxation and Dividend, tax and rate equivalent income;

·       Chapter 6 of this Budget Paper includes information on Government infrastructure investment; and

·       Government Services Budget Paper No 2 includes comprehensive information (including information on new funding allocations and the reasons for variations in expenditure across the Budget and Forward Estimates) on agency revenues, expenditure and investment in infrastructure.

 


 

Public Account Receipts and Expenditure Estimates

Tables 4.6 and 4.7 provide information for the total estimated Receipts and Expenditure of the Public Account for the 2022‑23 Budget and Forward Estimates. Estimated receipts are categorised based on the source and nature of each receipt. Estimated expenditure is categorised by the relevant Authority for Expenditure from the Public Account as provided under the FMA.

These tables meet the requirements of section 19(1)(a) and 19(1)(b) of the FMA. General Government Sector financial statements required under section 19(1)(c) are published elsewhere in this chapter.

These tables reflect the gross cash receipts to, and expenditure from, the Public Account. As such, they do not include the impact of the elimination of inter‑entity transactions within the Public Account or whole‑of‑government investment and cash management activities within the Public Account. These transactions are fully reflected in General Government Sector Statements and the key financial measures, including the Net Operating Balance, Fiscal Balance and Net Debt. Consequently the receipts and expenditures detailed in the tables will not reconcile directly with those presented in the General Government Cash Flow Statement.

Table 4.6:         Public Account Receipts

 

2021‑22 

2021‑22 

2022‑23 

2023‑24 

2024‑25 

2025‑26 

 

 

Estimated 

 

Forward 

Forward 

Forward 

 

Budget 

Outcome 

Budget 

Estimate 

Estimate 

Estimate 

 

$m 

$m 

$m 

$m 

$m 

$m 

 

 

 

 

 

 

 

General Receipts

 

 

 

 

 

 

Australian Government Sources

3 692.2 

3 929.9 

3 838.3 

4 145.8 

4 243.9 

4 371.3 

State Sources

2 126.9 

2 258.1 

2 191.0 

2 214.6 

2 265.2 

2 369.7 

 

5 819.1 

6 188.0 

6 029.3 

6 360.4 

6 509.1 

6 741.0 

 

 

 

 

 

 

 

Specific Purpose Accounts

2 706.3 

3 243.6 

3 376.9 

3 285.9 

3 089.1 

2 918.5 

 

 

 

 

 

 

 

Statutory Authorities

287.3 

292.6 

288.7 

283.7 

291.8 

285.4 

 

 

 

 

 

 

 

Total Receipts

8 812.8 

9 724.2 

9 695.0 

9 930.1 

9 890.0 

9 944.9 

 

 

 

 

 

 

 


 

Table 4.7:         Public Account Expenditure

 

2021‑22 

2021‑22 

2022‑23 

2023‑24 

2024‑25 

2025‑26 

 

 

Estimated 

 

Forward 

Forward 

Forward 

 

Budget 

Outcome 

Budget 

Estimate 

Estimate 

Estimate 

 

$m 

$m 

$m 

$m 

$m 

$m 

 

 

 

 

 

 

 

Annual Appropriation

 

 

 

 

 

 

Operating Services Expenditure

6 006.4 

6 146.4 

6 207.6 

6 207.7 

6 222.0 

6 298.1 

Capital Services Expenditure

593.0 

576.7 

828.9 

779.8 

684.6 

521.0 

 

6 599.4 

6 723.0 

7 036.5 

6 987.5 

6 906.5 

6 819.1 

 

 

 

 

 

 

 

Reserved by Law

475.9 

491.0 

465.0 

368.3 

391.4 

401.1 

 

 

 

 

 

 

 

Specific Purpose Accounts

2 707.6 

3 476.1 

3 394.8 

3 258.3 

3 168.1 

2 856.5 

 

 

 

 

 

 

 

Statutory Authorities

301.2 

283.6 

311.2 

305.6 

301.2 

297.3 

 

 

 

 

 

 

 

Other Provisions

(0.5)

(0.1)

(1.5)

(1.6)

(1.7)

(1.9)

 

 

 

 

 

 

 

Total Expenditure

10 083.6 

10 973.6 

11 205.9 

10 918.1 

10 765.5 

10 372.1 

 

 

 

 

 

 

 


 

Specific Purpose Accounts Estimated Receipts and Expenditure for 2022‑23

Table 4.8 provides estimated receipts and expenditure and associated balances for each Specific Purpose Account for 2022‑23, by agency. This table meets the requirement of section 17(10) of the FMA.

Table 4.8 provides information on the gross cash receipts to and payments from Specific Purpose Accounts and it does not include the elimination of inter‑entity transactions which are reflected in General Government Statements. Revenue and expenditure amounts do not, therefore, equal amounts in General Government Statements.

No estimates for receipts or payments from Agency Trust Accounts are included in the Public Account Statements presented in this Budget Paper.

Table 4.8:         Specific Purpose Accounts Estimated Receipts and Expenditure for 2022‑23

 

Estimated 

2022‑23 Budget 

Estimated 

 

Balance 

Estimates 

Balance1 

 

30 June 

 

30 June 

 

2022 

Receipts 

Expenditure 

2023 

 

$m 

$m 

$m 

$m 

Brand Tasmania

 

 

 

 

Agency Financial Management Account

.... 

0.3 

0.2 

0.1 

Communities Tasmania

 

 

 

 

Agency Financial Management Account

42.5 

138.9 

130.8 

50.6 

Education

 

 

 

 

Agency Financial Management Account

28.6 

69.9 

71.9 

26.5 

Department of Education School Banking Account

55.2 

115.7 

120.1 

50.8 

 

83.8 

185.6 

192.0 

77.4 

Environment Protection Authority

 

 

 

 

Agency Financial Management Account

16.2 

1.8 

1.5 

16.5 

Finance-General

 

 

 

 

Agency Financial Management Account2

0.1 

53.1 

62.1 

(8.9)

Australian Government Funding Management Account

234.6 

692.5 

675.2 

252.0 

Government Car Fleet Account

8.5 

37.0 

41.9 

3.6 

Rosetta Landslip Account

0.7 

0.1 

.... 

0.7 

Tasmanian Risk Management Fund

400.2 

139.0 

110.2 

429.0 

TT-Line Vessel Replacement Fund

41.0 

.... 

41.1 

.... 

 

685.1 

921.8 

930.5 

676.4 


 

Table 4.8:         Specific Purpose Accounts Estimated Receipts and Expenditure for 2022‑23 (continued)

 

Estimated 

2022‑23 Budget 

Estimated 

 

Balance 

Estimates 

Balance1 

 

30 June 

 

30 June 

 

2022 

Receipts 

Expenditure 

2023 

 

$m 

$m 

$m 

$m 

Health

 

 

 

 

Agency Financial Management Account

162.6 

942.0 

957.4 

147.2 

Private Patient Account

19.4 

31.9 

30.8 

20.5 

 

182.0 

973.8 

988.2 

167.6 

House of Assembly

 

 

 

 

Agency Financial Management Account

.... 

0.1 

0.1 

.... 

Integrity Commission

 

 

 

 

Agency Financial Management Account

0.1 

.... 

.... 

0.1 

Justice

 

 

 

 

Agency Financial Management Account

30.1 

68.6 

71.0 

27.7 

Asbestos Compensation Fund

24.8 

8.2 

7.6 

25.4 

Local Government and Other Elections Account

0.1 

3.1 

3.1 

0.1 

Workers Rehabilitation and Compensation Fund

2.3 

10.0 

10.1 

2.2 

 

57.3 

89.9 

91.7 

55.5 

Legislative Council

 

 

 

 

Agency Financial Management Account

.... 

0.1 

0.1 

.... 

Legislature-General

 

 

 

 

Agency Financial Management Account

0.1 

0.6 

0.5 

0.1 

Ministerial and Parliamentary Support

 

 

 

 

Agency Financial Management Account

0.4 

1.7 

1.7 

0.4 

Natural Resources and Environment Tasmania

 

 

 

 

Agency Financial Management Account

25.9 

79.7 

82.2 

23.4 

Crown Lands Administration Fund

46.9 

6.9 

6.3 

47.6 

Tasmanian Forests Agreement Account

1.2 

.... 

.... 

1.2 

 

74.0 

86.6 

88.5 

72.1 

Office of the Director of Public Prosecutions

 

 

 

 

Agency Financial Management Account

2.0 

0.9 

0.9 

2.0 

Office of the Governor

 

 

 

 

Agency Financial Management Account

0.1 

0.3 

0.2 

0.1 

Office of the Ombudsman

 

 

 

 

Agency Financial Management Account

0.4 

0.6 

0.6 

0.4 


 

Table 4.8:         Specific Purpose Accounts Estimated Receipts and Expenditure for 2022‑23 (continued)

 

Estimated 

2022‑23 Budget 

Estimated 

 

Balance 

Estimates 

Balance1 

 

30 June 

 

30 June 

 

2022 

Receipts 

Expenditure 

2023 

 

$m 

$m 

$m 

$m 

Police, Fire and Emergency Management

 

 

 

 

Agency Financial Management Account

4.2 

148.9 

148.8 

4.3 

Premier and Cabinet

 

 

 

 

Agency Financial Management Account

12.5 

37.5 

39.2 

10.9 

State Growth

 

 

 

 

Agency Financial Management Account

34.3 

763.0 

754.5 

42.8 

Tasmanian Audit Office

 

 

 

 

Agency Financial Management Account

2.6 

6.8 

6.8 

2.6 

Tourism Tasmania

 

 

 

 

Agency Financial Management Account

0.1 

3.4 

2.8 

0.7 

Treasury and Finance

 

 

 

 

Agency Financial Management Account

11.2 

14.5 

15.2 

10.4 

 

 

 

 

 

Total Specific Purpose Accounts

1 208.7 

3 376.9 

3 394.8 

1 190.8 

 

 

 

 

 

Notes:

1.    Discrepancies between totals and sums of components reflect rounding.

2.    The projected 30 June 2023 deficit for Finance-General reflects a timing difference with the estimation and recognition of accommodation cost recoveries from agencies.


 

Current Budget Risks and Sensitivities

Goods and Services Tax Revenue

GST revenue collections are highly sensitive to changes in national consumer spending patterns. Given ongoing uncertainty around the economic outlook, in particular national consumer spending patterns, there remains uncertainty regarding the forecasts of GST included in the 2022‑23 Budget.

Uncertainty also exists in relation to Tasmania’s relativity, which is calculated annually by the Commonwealth Grants Commission. Tasmania’s relativity in 2021‑22 was at historically high levels and is forecast to fall over the Forward Estimates as a result of Tasmania’s economic strength in recent years.

The Australia Government’s new GST distribution arrangements came into effect from 1 July 2021. States’ and territories’ fiscal capacities are now equalised to the fiscal capacity of the second highest jurisdiction (effectively the higher of New South Wales or Victoria), rather than the long established principle of equalising states’ and territories’ fiscal capacities to the level of the jurisdiction with the highest fiscal capacity.

The new arrangements will be progressively implemented over six years and include a no‑worse‑off guarantee until 2026‑27. As noted in chapter 5 of this Budget Paper, Tasmania and most states and territories are currently forecast to be worse off, under the new arrangements, in each year of the Budget and Forward Estimates. Due to the finite nature of the no‑worse‑off guarantee, there is a risk to Tasmania’s share of GST revenue from 2027‑28.

State Taxation

State taxation revenue estimates are sensitive to changes in a range of economic parameters, such as employment, inflation, wages growth and interest rates, as well as prevailing economic conditions in Tasmania more generally.

Conveyance Duty revenue in particular is impacted by a range of factors, including population growth, housing supply and interest rates which can result in volatility from year to year. As detailed in chapter 2 and chapter 5 of this Budget Paper, there is uncertainty around the impact that tightening monetary policy settings will have on households and businesses, including potential impacts on property values and transaction volumes. While the impacts may take some time to emerge, there is a risk that tighter monetary policy settings will constrain State Taxation over the Forward Estimates.

Government Businesses

Government businesses are subject to a wide range of influences that can significantly impact the level of returns to the Government, both positively and negatively. These include market conditions, infrastructure investment and borrowing requirements and the implementation of major reform programs. Such influences may impact the Budget through increased costs or reduced returns from government businesses, and may also necessitate changes to businesses’ capital structure requirements.


 

Significant Energy Projects

The State is continuing to progress a number of significant energy projects including Battery of the Nation and Marinus Link. Work is currently focused on taking the projects to a Final Investment Decision and is being progressed by the State‑owned electricity businesses. Both of these projects will require significant investment if they proceed and, depending on the project finance model(s) chosen, may result in significant new assets and liabilities being recognised on the Total State Sector Balance Sheet, although the majority of the investment will fall outside the Forward Estimates period.

The Government is also progressing plans for the development of a green hydrogen industry in Tasmania. Bell Bay has been identified as the most prospective site for Tasmania’s initial Green Hydrogen Hub. To develop hydrogen export capacity at Bell Bay is expected to require new infrastructure investment, particularly port, water and transmission network upgrades. This infrastructure may be delivered by state owned entities, although capital costs are anticipated to be recovered through commercial arrangements with end users.

Australian Government Election

The 2022 Australian Government Election may increase spending risk due to the potential requirement for matched funding related to Australian Government election commitments, a number of which contain requirements for State funding.  Any future major reforms may also present potential fiscal implications for Tasmania.

Health Expenditure

Improving health services in Tasmania is one of the Government’s highest priorities and this is reflected in the significant level of additional funding that the Government committed to health services during the 2021 Election, and the provision of significant additional funding in 2022‑23 to meet increased demand and modernise Tasmania’s public health ICT infrastructure. Notwithstanding the provision of this additional funding, the delivery of health services to the Tasmanian community continues to present a significant budget challenge (as it is across all Australian jurisdictions). The Government is continuing to monitor health demand and service requirements.

The Australian Government’s funding contribution to Health Services is funded under the National Health Reform Agreement. However, growth in Australian Government funding to the states and territories is capped at 6.5 per cent per year. There remains an underlying risk to the Budget and Forward Estimates that additional State funding provided to meet the demand for health services in Tasmania may grow at a faster rate than growth in the Australian Government’s capped funding contribution.

Support for Business and the Economy

The Government works closely with the private sector and local government to support investment and employment across Tasmania. This may result in the allocation of additional funding, the provision of financial guarantees or the forgoing of revenue over the Budget and Forward Estimates. In some instances, there have been offers of support made by the Government to businesses that may be taken up, if certain conditions are satisfied at a later date.

In response to the COVID‑19 pandemic, the Government has supported Tasmanian businesses through the provision of loan programs to support them to diversify and to remain viable. The increased size of the Government’s loan portfolio results in an associated increase in credit risk.

Natural Disaster Costs and Recovery Arrangements

The 2022‑23 Budget includes funding as a central provision for bushfire emergency costs. 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.

Under the Disaster Recovery Funding Arrangements the State is able to seek reimbursement from the Australian Government for a portion of the costs incurred by the State and local government in the event of natural disasters. Assumptions have been required to be made in relation to the level of future funds to be received from the Australian Government relating to previous disasters and the timing of the receipt of those funds. Any variation from these assumptions will result in an impact on the current Budget estimates.

Claims against the State by Survivors of Institutional Child Sexual Abuse

The Government has committed $70 million over ten years to meet compensation and administration costs under the National Redress Scheme for Institutional Child Sexual Abuse. Whilst the magnitude is uncertain, it is possible that additional costs will be incurred.

Commission of Inquiry into the Tasmanian Government’s responses to Child Sexual Abuse in Institutional Settings

The Commission of Inquiry into the Tasmanian Government’s responses to child sexual abuse in institutional settings was established by Order of the Governor on 15 March 2021. It is required to submit its final report and recommendations no later than 1 May 2023. The Commission is a separate entity to the Department of Justice, and is funded in the 2022‑23 Budget as a separate output of the Department.

Actual costs incurred in responding to requests by the Commission and other costs associated with the Inquiry may differ from the Budget. Future funding requirements will continue to be reviewed. Future costs associated with recommendations of the Commission may be significant and will be considered when the final report is submitted to the Government.

Royal Commission into Violence, Abuse, Neglect and Exploitation of People with Disability

There will be costs for jurisdictions from participation in the Royal Commission into Violence, Abuse, Neglect and Exploitation of People with Disability. Expected costs are associated with hearings that relate to Tasmania and the legal and administrative support including the cost of providing information and evidence to the Royal Commission by government agencies. In addition to these indirect costs, it is possible there will be costs associated with any Tasmanian Government response to the Royal Commission’s findings and recommendations.

Unfunded Commitments

Commitments made subsequent to the finalisation of the 2022‑23 Budget estimates have not been included in the 2022‑23 Budget Papers. They will be reflected in the 2022‑23 Revised Estimates Report.

Funding Requirements beyond the Forward Estimates

Expenditure estimates presented in this Budget Paper are based on a Budget and Forward Estimates period of four years. As such, expenditure levels beyond this period are not identified. As is established practice, such impacts are taken into account in the ongoing development and management of the Budget.

General Agency Cost Pressures

While all agencies are expected to deliver services within their allocated Budget and Forward Estimates, there continues to be a range of pressures which agencies need to manage, including staffing levels, general increases in the cost of inputs and increasing demand for services. These issues will require ongoing management and review.

Public Sector Wage Outcomes

The 2022‑23 Budget and Forward Estimates provides for wage indexation of 2½ per cent for the total cost of salary increases, allowances and other employment conditions for all industrial agreements. Employee costs (including superannuation) are the single largest operating expenditure item for the Government and represented approximately 48 per cent of actual total operating expenditure in 2020‑21. A number of Tasmanian State Service wage agreements are due for re‑negotiation in 2022, including the Public Sector Unions Wages Agreement. Any wage outcomes over and above the level of indexation provided will have a negative impact on the Budget outcome.

Variability of Infrastructure Expenditure

The Government is continuing its strong focus on the development of infrastructure in the 2022‑23 Budget. Actual infrastructure expenditure can vary considerably year‑on‑year due to a range of factors, with the resulting variance potentially creating a material impact on the key fiscal measures in the Budget. This risk is currently exacerbated by the ongoing impact of COVID‑19 pandemic and associated supply constraints, low unemployment and the high level of activity in the construction sector.  

COVID‑19 Pandemic

As Tasmania transitions to living with COVID‑19, some uncertainty remains in relation to the impact of the pandemic on the fiscal and economic information presented in the 2022‑23 Budget Papers. This includes the risk of a COVID‑19 strain emerging which is resistant to current vaccines, leading to renewed outbreaks and possible impact to the community.

The impact of the COVID‑19 pandemic on the Tasmanian economy and the Budget will continue to be closely monitored by the Government.

Interest Rates

Over the 2022‑23 Budget and Forward Estimates Net Debt is forecast to increase to $5.2 billion. Debt servicing costs remain manageable due to the current low interest rate environment and Tasmania’s low level of General Government Sector net debt as a percentage of GSP. The Reserve Bank of Australia recently raised the RBA Cash Rate for the first time in more than 11 years, with an expectation of further rises. To the extent that interest rates rise more rapidly than expected, over time, debt servicing costs may increase above amounts currently forecast and adversely impact key fiscal measures.