1     Introduction

Key Issues

·       The 2022‑23 Budget focuses on strengthening Tasmania by delivering for all Tasmanians. The Government is doing this through:

-      strengthening essential services;

-      introducing new targeted services; and

-      investing in community infrastructure.

·       The 2022-23 Budget continues to deliver on the Government’s 2021 election commitments and supports the Tasmanian community as it transitions to living with COVID-19.

·       This Budget Paper provides detailed information on the goods and services (Outputs) provided by entities and the key deliverables for 2022‑23 and over the Forward Estimates (2023‑24 to 2025‑26). The information presented in this Budget Paper supports the whole‑of‑government information provided in The Budget Budget Paper No 1 and supports the 2022 Appropriation Bills.

·       Other information provided in this Budget Paper includes:

-      performance information for entities;

-      infrastructure investment projects being delivered by entities; and

-      financial statements for the 2022‑23 Budget and Forward Estimates for each entity.

·       To assist in understanding the Budget Papers, supporting information on the Government’s financial management framework, the annual Budget process, and the presentation of Budget Paper information is published in Overview: Tasmania’s Financial Management Framework and Understanding the Budget, available at www.treasury.tas.gov.au.


 

Budget Paper No 2 Information

This Budget Paper provides information about the Outputs (goods and services) the Government will deliver to the Tasmanian community through General Government Sector entities in 2022‑23 and over the Forward Estimates (2023‑24 to 2025‑26). This Budget Paper details the purposes of appropriation provided for in the 2022 Appropriation Bills.

This Budget Paper is also a major source of financial and non‑financial information on the operations of General Government Sector entities, including departments, agencies and statutory authorities. Entity annual reports, which are to be published by 31 October each year, are also a key source of information on entity operations.

Budget Paper No 2 comprises two volumes and three separate parts that reflect the differing nature of the General Government Sector entities:

·       Part 1 includes Government departments, such as the Department of Education and the Department of Justice;

·       Part 2 primarily includes Parliamentary agencies, Statutory Offices and other Agencies, such as the House of Assembly, the Legislative Council, and the Tasmanian Audit Office; and

·       Part 3 includes statutory authorities within the General Government Sector, such as the State Fire Commission and the Inland Fisheries Service.

This Budget Paper does not provide information on government businesses. Information on these entities is available in each entity’s annual report.

2022‑23 Budget Presentation and Other Issues

This chapter provides information on specific matters that should be taken into account when reviewing this Budget Paper, including key changes in the presentation of entity information and estimates since the publication of the 2021‑22 Budget.

The information presented in this Budget Paper reflects the Ministerial Portfolio and departmental structure current at the time of preparing the 2022‑23 Budget. An outline of this structure is provided at Appendix 1.

2022‑23 Budget Key Deliverables

The Key Deliverables Statement in each entity chapter of this Budget Paper reflects funding allocated to agencies in the 2022‑23 Budget, primarily to deliver new initiatives, to continue previously fixed‑term initiatives, or to enhance government services and infrastructure. The Statement also includes initiatives funded by entities from within existing resources.


 

The Key Deliverables information reflects the total amount of new funding allocated to deliver the initiative, and can include a combination of appropriation for Operating Services and Capital Services.

This treatment differs from the Policy and Parameter Statement in chapter 4 of The Budget Budget Paper No 1, which is presented on an accounting classification basis. While this can result in some differences between the Policy and Parameter and Key Deliverables statements, the total allocation of funding is the same.

2021 Election and Other Previous Commitments

The 2021‑22 Budget provided funding to implement all of the Government’s 2021 election commitments and a range of other existing initiatives. The 2022-23 Budget includes funding to continue to deliver these commitments.

The 2022‑23 Budget includes a Provision for the Continuation of Time Limited Programs to support the extension of fixed-term initiatives. Funding of $180 million is allocated in Finance‑General for the Provision across the Forward Estimates. As part of future Budget Development processes, the Government will assess the benefit of continuing fixed‑term initiatives following advice on the outcomes, efficiency and evaluations of these initiatives.

Impact of COVID‑19 Pandemic on Budget Estimates

The progression of the COVID‑19 pandemic across Australia and the response of governments has evolved since the start of the pandemic, with many changes requiring additional expenditure to protect the health and wellbeing of the Tasmanian community and to support the State economy.

Costs associated with COVID‑19 response and recovery measures in Tasmania are funded and included in existing agency Outputs. These include Output Group 90 ‑ COVID‑19 Response and Recovery Measures established in the 2020‑21 Budget for specific expenditure measures announced by the Government. Additionally, the Public Building Maintenance Program is allocated to Output Group 89, with funding reimbursed from Finance‑General to agencies. The funding allocated to these Outputs are short‑term in nature, with many ceasing as Tasmania continues to transition to living with COVID‑19.

To support this transition, the appropriation to the Treasurer’s Reserve has been maintained at  $150 million in 2022‑23. This allocation will provide for unforeseen expenditure during the year that cannot be managed from an agency’s existing resources. Over the Forward Estimates, $50 million per annum is allocated to the Treasurer’s Reserve.

Indexation of Agency Allocations

As part of the development of the 2022-23 Budget, indexation rates for wage and non-wage costs were considered in the context of CPI forecasts and the Government’s current wages policy and negotiations. 

Over the 2022-23 Budget and Forward Estimates, indexation rates have been amended to reflect a standardised rate of 2.5 per cent per annum for both wage and non‑wage costs. This excludes medical and surgical supplies, which continue to be indexed at a rate of 4 per cent per annum.

Agency estimates for employee benefits include wage indexation in accordance with wage agreements outcomes current at the time of preparing the 2022‑23 Budget. Following the expiry of agreements, indexation is provided at 2.5 per cent per annum.

2022‑23 Budget Entity Restructures

This section provides an overview of entity restructures implemented since the 2021‑22 Budget. Where a restructure of an entity’s Outputs is reflected in the 2022‑23 Budget, an explanation is provided in the relevant entity chapter in this Budget Paper.

The impact of the restructure and abolition of the Department of Communities Tasmania is not reflected in the 2022‑23 Budget Papers. Detailed information is required to undertake a major Departmental restructure of this nature. Implementation of the new Departmental structures were underway and not completed at the time of finalisation of the 2022‑23 Budget estimates.

A State Service (Restructuring) Order will be required under the State Service Act 2000 to facilitate the movement of functions, budget and staff between Departments. It is expected that the Order will facilitate transition to receiving agencies in a staged approach to be completed by 30 September 2022. The Department of Communities Tasmania will exist as an agency until the Order is made and as such is reflected in the 2022-23 Budget. The restructure will occur following the publication of the Budget and be reflected in the 2022‑23 Revised Estimates Report.

Administrative Arrangements

The allocation of Agency Outputs to Ministerial Portfolios included in this Budget Paper reflects the structure of the Tasmanian Government under the Administrative Arrangements Order (No. 3) 2022.

State Service Restructuring Orders

In accordance with State Service Restructuring Orders, a number of agency restructures were implemented during the 2021‑22 financial year and are reflected in the estimates presented in the 2022‑23 Budget Papers. The relevant Orders are State Service (Restructuring) Order 2021, State Service (Restructuring) Order (No.2) 2021 and State Service (Restructuring) Order 2022.

Where relevant, transfers of appropriations were effected under the authority of the Administrative Arrangements Act 1990, which provides for existing appropriations made under an Appropriation Act for a particular purpose to continue to be available for that purpose in the amalgamated agency.

Establishment of Renewables, Climate and Future Industries Tasmania

Effective 31 October 2021, Renewables, Climate and Future Industries Tasmania was established through the amalgamation of Renewables Tasmania (previously part of the Department of State Growth) and the Tasmanian Climate Change Office (previously part of the Department of Premier and Cabinet) with the Department of Treasury and Finance.

Planning Policy

Effective 31 October 2021, the Planning Policy Unit transferred from the Department of Justice to the Department of Premier and Cabinet.

Establishment of Environment Protection Authority

Effective 1 December 2021, the Environment Protection Authority was established as a standalone independent State Authority, separate from the Department of Natural Resources and Environment Tasmania, with existing EPA functions and activities within the Department transferred to the new Authority.

Forestry Functions

Effective 31 March 2022, the forestry policy functions in the Department of State Growth (including those parts relating to Forest Practices Authority and Private Forests Tasmania) were amalgamated with the Department of Natural Resources and Environment Tasmania.

Other Agency Restructures

Each year, an agency may change the presentation of its Outputs to improve alignment with the services being delivered by the agency. Where this occurs, previous year estimates are recast to provide comparability with the new structure. 

As part of the 2022-23 Budget Development process, other restructures were undertaken as follows:

·       Department of State Growth - update and realign outputs with agency operations; and

·       Department of Natural Resources and Environment Tasmania - update and realign outputs with agency operations, and a reclassification of the Government’s contribution to the Royal Tasmanian Botanical Gardens from a controlled grant to an administered grant.

Financial Statement Presentation Issues

Lease Treatment

As part of the 2022‑23 Budget development process, the estimates for leases have been reviewed to align with 2020‑21 audited financial statements and updated assumptions over the 2022‑23 Budget and Forward Estimates. Material adjustments made as a result of this review are noted in entity chapters. 

Model Financial Statements

Treasury prepares Model Departmental Financial Statements to guide agencies in the presentation of financial information. These Model Departmental Financial Statements are revised annually to ensure that they reflect current relevant financial reporting frameworks. No significant changes were made to the 2022‑23 Budget Papers as a result of the review of Model Departmental Financial Statements.

Presentation of Rollovers

The 2022‑23 Budget reflects preliminary agency estimates of unexpended appropriations from 2021‑22. Prior to 30 June 2022, estimates will be updated and approval from the Treasurer will be sought to rollover appropriations, in accordance with section 23 of the Financial Management Act 2016. This section provides the necessary authority for the appropriation from the Public Account in the following financial year for the amount of funds approved for rollover. Unexpended appropriations for rollover are identified in the Statement of Comprehensive Income as Other revenue from government, in the Statement of Cash Flows as Appropriation receipts ‑ other, and in the Revenue from Appropriation by Output table as Appropriation Rollover.

This differs from the 2020‑21 and 2021‑22 Budget Papers, which included approved rollover amounts as the Budget was published after 30 June in each year.

Opening Balances Treatment

Due to the timing of the 2022‑23 Budget, actual outcomes are not available for 2021‑22.

Consequently, the entity end of year Budget position and resulting opening balances for 2022‑23 are based on estimates and do not reflect the actual 30 June 2022 outcome. Estimates incorporate entity 2020‑21 audited financial statements and assumptions made by entities on forecast positions over the 2022‑23 Budget and Forward Estimates. This primarily impacts the presentation of information in the Statement of Financial Position and the Statement of Cash Flows.

Similarly, the publication of 2021‑22 Estimated Outcome for Specific Purpose Account balances detailed in chapter 4 of The Budget Budget Paper No 1 will differ from actual outcomes.

To the extent that the 2021-22 unaudited Preliminary Outcome is materially different from the 2021-22 Estimated Outcome, a Preliminary Outcomes Report will be required to be published by 15 August 2022 which will reflect unaudited Special Purpose Account balances and Opening Balances.

Revised entity opening balances, including audited Specific Purpose Account balances, will be incorporated into the Revised Estimates Report 2022‑23. This Report will also reflect General Government Sector Opening Balances contained in the Treasurer’s Annual Financial Report 2021‑22.

Other Budget Presentation Issues

Performance Information

Entities continually review performance measures based on a number of factors, including national approaches to performance measurement, the availability of information and the changing nature of services. This leads to changes in the performance information for some entities between Budgets. Further, the presentation of performance information in the Budget Papers is subject to ongoing review.

In the 2022‑23 Budget Papers, two years of actual information (2019‑20 and 2020‑21) and two years of targets (2021‑22 and 2022‑23) are published for each performance measure (unless otherwise noted).

Entities will next report on performance information in 2021‑22 Annual Reports, due to be available by 31 October 2022.

Superannuation Guarantee Charge

Entity estimates for superannuation over the 2022‑23 Budget and Forward Estimates incorporate the cost of the increase in the rate of the Superannuation Guarantee Charge that re‑commenced from 1 July 2021. The SGC increased to 10 per cent on 1 July 2021, and is increasing at a rate of 0.5 per cent per annum to a total of 12 per cent on 1 July 2025. Accordingly, the SGC is 10.5 per cent in 2022‑23.


 

General Presentation Conventions

The information presented in the Budget Papers has been prepared and presented taking into account the following general conventions.

Figures in tables and in the text have been rounded. Discrepancies in tables between totals and sums of component items reflect rounding. Percentage changes in all tables are based on the underlying unrounded amounts.

The notation used in the Budget Papers is as follows:

na

not available, or not applicable;

....

zero, or rounded to zero;

$'000

$ thousand; and

$m

$ million.

 


 

Appendix 1: Ministerial Portfolio and Departmental Structure

Table A1.1:         General Government Sector Departments1

Minister

Ministerial Portfolio

Department

 

 

 

Hon Jeremy Rockliff MP

Premier

Premier and Cabinet / Brand Tasmania

 

Health

Health

 

Mental Health and Wellbeing

Health

 

Tourism

State Growth / Tourism Tasmania

 

Trade

State Growth

 

 

 

Hon Michael Ferguson MP

Deputy Premier

Treasurer

Treasury and Finance

 

Infrastructure and Transport

State Growth

 

Planning

Premier and Cabinet / Justice

 

 

 

Hon Elise Archer MP

Attorney‑General

Justice

 

Justice

Justice

 

Corrections and Rehabilitation

Justice

 

Workplace Safety and Consumer Affairs

Justice

 

Arts

State Growth

 

 

 

Hon Guy Barnett MP

State Development, Construction and Housing

State Growth / Communities Tasmania

 

Energy and Renewables

Treasury and Finance

 

Resources

State Growth / Justice / Natural Resources and Environment Tasmania

 

Veterans’ Affairs

Communities Tasmania

 

 

 

Hon Roger Jaensch MP

Education, Children and Youth

Education / Communities Tasmania

 

Skills, Training and Workforce Growth

State Growth

 

Environment and Climate Change

Natural Resources and Environment Tasmania / Treasury and Finance

 

Aboriginal Affairs

Natural Resources and Environment Tasmania / Communities Tasmania

 


 

Table A1.1:         General Government Sector Departments (continued)1

Minister

Ministerial Portfolio

Department

 

 

 

Hon Madeleine Ogilvie MP

Small Business

State Growth

 

Advanced Manufacturing and Defence Industries

State Growth

 

Science and Technology

State Growth / Premier and Cabinet

 

Racing

Natural Resources and Environment Tasmania

 

Heritage

Natural Resources and Environment Tasmania

 

 

 

Hon Jo Palmer MLC

Primary Industries and Water

Natural Resources and Environment Tasmania

 

Disability Services

Communities Tasmania

 

Women

Communities Tasmania

 

 

 

Hon Jacquie Petrusma MP

Police, Fire and Emergency Management

Police, Fire and Emergency Management

 

Parks

Natural Resources and Environment Tasmania

 

Prevention of Family Violence

Communities Tasmania

 

 

 

Hon Nic Street MP

Community Services and Development

Communities Tasmania

 

Hospitality and Events

State Growth

 

Sport and Recreation

Communities Tasmania

 

Local Government

Premier and Cabinet

Note:

1.    This table lists Government Ministers and their Ministerial portfolios and the relevant Department(s) responsible to that Minister in administering enactments and managing budgetary resources. Further information regarding these responsibilities is provided in the relevant Department chapters in this Budget Paper.


 

General Government Sector Authorities

These Statutory Authorities are established under specific legislation that defines the purpose of the authority and its responsibilities and functions.

Table A1.2 identifies the current Ministerial portfolio allocations for the General Government Sector Authorities.

Table A1.2:       General Government Sector Authorities

Statutory Authority

Portfolio Minister

Portfolio Department

 

 

 

Inland Fisheries Service

Hon Jo Palmer MLC

Natural Resources and Environment Tasmania

Marine and Safety Tasmania

Hon Michael Ferguson MP

State Growth

Royal Tasmanian Botanical Gardens

Hon Jacquie Petrusma MP

Natural Resources and Environment Tasmania

State Fire Commission

Hon Jacquie Petrusma MP

Police, Fire and Emergency Management

TasTAFE

Hon Roger Jaensch MP

State Growth