12    Department of Treasury and Finance

Agency Outline

The Department of Treasury and Finance is responsible to the Treasurer, Hon Michael Ferguson MP, the Minister for Energy and Renewables, Hon Guy Barnett MP, and the Minister for Environment and Climate Change, Hon Roger Jaensch MP.

Treasury provides the Government with objective advice on the economic and financial management of the State, on climate change, and on energy and renewables. Treasury also implements Government policies and programs, and performs analysis, monitoring and reporting functions on behalf of the Government.

Treasury undertakes various activities including:

·       monitoring and analysing trends in economic conditions and forecasting economic parameters for Tasmania;

·       preparing and monitoring the State Budget, managing the Public Account and providing advice on financial and resource management in the public sector, taking into account the Government’s strategies and priorities;

·       monitoring and providing advice on the performance and management of government businesses;

·       managing the Government’s office accommodation portfolio, managing insurable risks of agencies, managing property sales and whole-of-government procurement;

·       providing policy advice on regulatory and financial issues, intergovernmental financial relations and State taxation issues and State taxation collection on behalf of the Commissioner of State Revenue;

·       providing strategic advice on climate change, renewable energy and emissions reduction including on major projects such as Battery of the Nation, Marinus Link and future industries such as green hydrogen production;

·       monitoring Tasmania’s energy security, advising on energy policy and regulatory arrangements and delivering programs that support renewable energy related industry development and climate change adaptation and mitigation; and

·       supporting the Tasmanian Economic Regulator, the State Grants Commission, the Tasmanian Liquor and Gaming Commission, the Commissioner for Licensing, the Commissioner of State Revenue and the Superannuation Commission to carry out their statutory, regulatory and integrity functions.

This chapter provides the Department’s financial information for 2022‑23 and over the Forward Estimates (2023‑24 to 2025‑26). Further information on the Department is provided at www.treasury.tas.gov.au.

 

Key Deliverables

Table 12.1 provides a summary of the Budget and Forward Estimates allocations for key deliverables within the Department.

Table 12.1:       Key Deliverables Statement

 

2022‑23

 

Budget

2023‑24

Forward

Estimate

2024‑25

Forward

Estimate

2025‑26

Forward

Estimate

 

$'000

$'000

$'000

$'000

 

 

 

 

 

eInvoicing Adoption by Tasmanian Government Agencies

984

290

16

16

Government Boiler Replacement Program

1 000

3 000

3 000

3 000

Public Trustee Community Service Obligation

1 060

1 077

1 093

1 110

Public Trustee Review Recommendations

1 180

1 150

1 000

1 000

Renewable Energy Coordination Framework1

400

400

....

....

Tasmanian Irrigation2

25 330

4 000

4 000

4 000

Tasmanian Railway2

6 000

6 800

12 200

9 200

Tasmania’s Climate Change Action Plan3

3 335

5 000

1 000

500

Transition to Electric Vehicles

....

500

750

1 000

 

 

 

 

 

Notes:

1.    This initiative will be funded from within the existing resources of the Department.

2.    This initiative is funded through Finance-General.

3.    This initiative is a continuation of funding provided in the 2021‑22 Budget.

eInvoicing Adoption by Tasmanian Government Agencies

Funding is provided for Treasury to become the lead agency to be eInvoicing enabled and then to support the adoption of eInvoicing across other Tasmanian Government agencies by 1 July 2025.

Treasury will provide support to other agencies through:

·       education and awareness;

·       a whole-of-government assessment framework and adoption plan;

·       support with supplier outreach;

·       support with policy documentation;

·       central procurement of a Peppol Access Point provider; and

·       post‑implementation testing and support.

Government Boiler Replacement Program

This program will implement renewable energy alternatives for Government‑owned fossil fuel boilers with renewable energy alternatives, with a focus on bioenergy solutions. The 2020‑21 Budget included initial funding for a study to identify renewable energy solutions for the 60 Government‑owned fossil fuel boilers. This program will commence implementation of the study’s findings.

Public Trustee Community Service Obligation

Additional funding is provided over four years to support the Public Trustee to deliver the services required under its Community Service Obligation Agreement.

Public Trustee Review Recommendations

Additional funding is provided over four years to support the Public Trustee implement the recommendations from the Independent Review.

Renewable Energy Coordination Framework

Funding is allocated in 2022‑23 and 2023‑24 to implement the Renewable Energy Coordination Framework. The RECF sets out a number of actions to coordinate the efficient delivery of new generation and transmission infrastructure as the State pursues its 200 per cent renewable energy target by 2040. These actions include the development of renewable energy zones, spatial mapping and best practice community engagement and local benefits sharing.

Tasmanian Irrigation

Additional funding is provided to Tasmanian Irrigation Pty Ltd to support: project development and delivery costs ($16 million over four years); the repayment of borrowings ($10.5 million); the development of Tranche 3 irrigation scheme businesses cases ($7.3 million); the Lake Leake Dam Life Extension project ($1.5 million); the South East Interim Irrigation Scheme ($1.2 million); and legacy asset studies ($850 000). 

Tasmanian Railway

Additional funding is provided to Tasmanian Railway Pty Ltd for Tranche 4 of the Tasmanian Rail Revitalisation Program ($12 million); the overhaul of Tasmanian Railway’s legacy locomotives ($15 million); the reconnection of the Bell Bay rail line to the Port of Bell Bay ($3.6 million); and the construction of a new minerals hub on the Melba rail line ($3.6 million).

Tasmania’s Climate Change Action Plan

This initiative is a continuation of funding provided in the 2021-22 Budget to implement a whole‑of‑government plan to guide the Government’s activity on climate change. Tasmania’s Climate Change Action Plan will identify practical actions to support business, industry, community and government to reduce emissions and build resilience to the impacts of climate change in a way that boosts productivity and supports economic growth.

Transition to Electric Vehicles

The 2022‑23 Budget provides funding over three years to subsidise the cost of procuring electric vehicles for the Government fleet and to further progress the commitment to transition the Government fleet to electric vehicles by 2030. This investment is in addition to initial funding provided in the 2020‑21 Budget for the Electric Vehicle Target for the Tasmanian Government Fleet, bringing the total funding for the initiative since its inception to $4.6 million.


 

Output Group Restructure

As part of the 2021‑22 State Budget, the Government announced it would establish Renewables, Climate and Future Industries Tasmania to provide strategic policy advice to the Government in relation to climate change, renewable energy and emissions reduction and the development of a low carbon economy.

Effective 31 October 2021, the Department was restructured in accordance with State Service (Restructuring) Order 2021, and ReCFIT 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).

At an output level, the restructure has resulted in the following changes:

·       a new Output Group 5 ‑ Renewables, Climate and Future Industries Tasmania was created;

·       a new Output 5.1 Climate Change was created. This Output received funding for climate change activities from the Department of Premier and Cabinet’s former Output 2.1 Climate Change;

·       a new Output 5.2 Energy and Renewables was created. This Output received funding for renewables activities from the Department of State Growth’s former Output 3.1 Energy Emissions Reduction Policy and Advice; and

·       the former Output 2.4 Renewables, Climate and Future Industries Tasmania was abolished with funding transferred to the new Outputs 5.1 and 5.2.

The 2022‑23 Budget Papers reflect this new output structure. The 2021‑22 Budget was amended to reflect the restructure.

Output Information

Outputs of the Department of Treasury and Finance are provided under the following Output Groups:

·       Output Group 1 ‑ Financial and Resource Management Services;

·       Output Group 2 ‑ Economic and Fiscal Policy Advice;

·       Output Group 3 ‑ Revenue, Superannuation and Regulatory Management Services;

·       Output Group 4 ‑ Community Assistance;

·       Output Group 5 ‑ Renewables, Climate and Future Industries Tasmania; and

·       Output Group 89 ‑ Public Building Maintenance Program.

Table 12.2 provides an Output Group Expense Summary for the Department.

 

Table 12.2:       Output Group Expense Summary

 

2021‑22 

2022‑23 

2023‑24 

2024‑25 

2025‑26 

 

 

 

Forward 

Forward 

Forward 

 

Budget 

Budget 

Estimate 

Estimate 

Estimate 

 

$'000 

$'000 

$'000 

$'000 

$'000 

 

 

 

 

 

 

Treasurer

 

 

 

 

 

 

 

 

 

 

 

Output Group 1 ‑ Financial and Resource Management Services

 

 

 

 

 

1.1 Budget Development and Management

3 727 

3 946 

4 075 

4 204 

4 300 

1.2 Financial Management and Accounting Services1

3 899 

4 964 

4 676 

4 545 

4 660 

1.3 Shareholder Advice on Government Businesses

2 841 

2 727 

2 833 

2 930 

2 996 

1.4 Government Property and Accommodation Services

2 496 

2 383 

2 322 

2 399 

2 450 

1.5 Government Procurement Services2

3 722 

3 306 

3 868 

4 188 

4 503 

 

16 685 

17 326 

17 774 

18 266 

18 909 

Output Group 2 ‑ Economic and Fiscal Policy Advice

 

 

 

 

 

2.1 Economic Policy Advice3

2 573 

1 964 

2 016 

2 067 

2 092 

2.2 Regulatory Policy

4 083 

4 286 

4 342 

4 335 

4 417 

2.3 Intergovernmental Financial Matters

2 604 

2 448 

2 477 

2 539 

2 555 

 

9 260 

8 698 

8 835 

8 941 

9 064 

Output Group 3 ‑ Revenue, Superannuation and Regulatory Management Services

 

 

 

 

 

3.1 Tax Administration and Revenue Collection

7 927 

8 016 

8 315 

8 622 

8 876 

3.2 Regulation and Administration of Liquor and Gaming

5 566 

5 469 

5 543 

5 596 

5 762 

3.3 Economic Regulation

2 176 

1 871 

1 918 

1 973 

1 972 

3.4 Office of the Superannuation Commission4

14 714 

13 131 

13 323 

13 503 

13 634 

3.5 Administration of Grants, Subsidies and Concessions

1 808 

1 719 

1 732 

1 764 

1 769 

 

32 191 

30 206 

30 831 

31 458 

32 013 

Output Group 4 ‑ Community Assistance

 

 

 

 

 

4.1 Public Trustee Community Service Obligation5

2 212 

4 501 

4 539 

4 457 

4 474 

4.2 Community Support Levy6

4 230 

4 180 

8 361 

8 361 

8 361 

 

6 442 

8 681 

12 900 

12 818 

12 835 

Output Group 89 ‑ Public Building Maintenance Program

 

 

 

 

 

89.1 Public Building Maintenance Program7

687 

.... 

.... 

.... 

.... 

 

687 

.... 

.... 

.... 

.... 

 

 

 

 

 

 

Minister for Energy and Renewables

 

 

 

 

 

 

 

 

 

 

 

Output Group 5 ‑ Renewables, Climate and Future Industries Tasmania

 

 

 

 

 

5.2 Energy and Renewables8

13 537 

20 129 

17 435 

14 255 

13 823 

 

13 537 

20 129 

17 435 

14 255 

13 823 

 

Table 12.2:       Output Group Expense Summary (continued)

 

2021‑22 

2022‑23 

2023‑24 

2024‑25 

2025‑26 

 

 

 

Forward 

Forward 

Forward 

 

Budget 

Budget 

Estimate 

Estimate 

Estimate 

 

$'000 

$'000 

$'000 

$'000 

$'000 

 

 

 

 

 

 

Minister for Environment and Climate Change

 

 

 

 

 

 

 

 

 

 

 

Output Group 5 ‑ Renewables, Climate and Future Industries Tasmania

 

 

 

 

 

5.1 Climate Change9

5 918 

8 434 

9 163 

4 232 

3 401 

 

5 918 

8 434 

9 163 

4 232 

3 401 

 

 

 

 

 

 

TOTAL

84 720 

93 474 

96 938 

89 970 

90 045 

 

 

 

 

 

 

Notes:

1.    The increase in Financial Management and Accounting Services reflects funding for the eInvoicing Adoption by Tasmanian Government Agencies initiative.

2.    The increase in Government Procurement Services from 2023‑24 reflects funding for the Transition to Electric Vehicles initiative.

3.    The decrease in Economic Policy Advice in 2022‑23 reflects the reallocation of resources for the provision of energy policy issues to ReCFIT.

4.    The decrease in Office of the Superannuation Commission from 2022‑23 reflects savings achieved in providing superannuation member services.

5.    The increase in Public Trustee Community Service Obligation from 2022‑23 reflects additional funding for services under the Community Service Obligation Agreement and the implementation of recommendations from the Independent Review.

6.    The increase in Community Support Levy from 2023‑24 is due to the legislative amendments under the Government’s Future Gaming Market policy establishing the Community Support Fund.

7.    The decrease in Public Building Maintenance Program in 2022‑23 reflects the completion of maintenance work funded as part of the Government’s COVID‑19 Response and Recovery measures.

8.    The variation in Energy and Renewables reflects the timing of funding for the Government Boiler Replacement Program and funding provided for prior Budget initiatives.

9.    The variation in Climate Change reflects the timing of funding provided for prior Budget initiatives.

 

 

Output Group 1:    Financial and Resource Management Services

1.1 Budget Development and Management

This Output includes management of the State Budget process, the provision of advice on budgetary issues and monitoring of the State’s financial performance against the Government’s Fiscal Strategy.

1.2 Financial Management and Accounting Services

This Output includes whole-of-government financial management activities and the provision of advice on financial management and reform, consistent with the Government’s strategies and priorities. It supports a range of services relating to the management of financial assets and liabilities, associated risk mitigation strategies and the preparation of whole-of-government financial and statistical reports.

1.3 Shareholder Advice on Government Businesses

This Output includes monitoring and provision of advice on government businesses. It supports the provision of advice on reforms and policies relating to the Government’s ownership of businesses. Submissions and presentations to the credit rating agencies are included in this Output.

1.4 Government Property and Accommodation Services

This Output covers the administration of, and provision of advice in relation to, Government property and office accommodation services, including the management of government‑owned and leased office buildings and the disposal of surplus Crown property.

1.5 Government Procurement Services

This Output includes the provision of advice in relation to Government procurement activities and the management of whole-of-government contracts and the Tasmanian Risk Management Fund.

 

Table 12.3:       Performance Information ‑ Output Group 1

Performance Measure

Unit of

 Measure

2019‑20 Actual

2020‑21 Actual

2021‑22 Target

2022‑23

 Target

 

 

 

 

 

 

Financial and Resource Management Services

 

 

 

 

 

Stakeholder satisfaction rating1

%

na

na

na

>90

Proportion of financial reports receiving an unqualified audit opinion2

%

100

100

100

100

Treasury‑managed property vacancy rate3

%

3.7

2.9

<1.5

<1.5

State Service workers’ compensation contribution as a percentage of the average premium charged by private insurers4

%

104

107

<100

<100

Proportion of financial reports published by the required date5

%

100

100

100

100

Variance between Budget estimate and actual

 

 

 

 

 

GBE/SOC returns6

%

2.9

3.7

<5.0

<5.0

 

 

 

 

 

 

Notes:

1.    The satisfaction rating of the quality of Treasury’s services is obtained from the results of Treasury’s Stakeholder Survey. Treasury’s Stakeholder Survey was most recently completed in August 2018 for 2017‑18 and is scheduled to next be completed in late 2022.

2.    An unqualified audit opinion from the Auditor-General indicates that the financial reports are a true and accurate reflection of the Government’s finances.

3.    The vacancy rate is the proportion of all owned and leased office space managed by Treasury that is currently vacant and available for occupation. The introduction of the Financial Management Act 2016 and AASB 16 Leases significantly increased the size of the portfolio managed by Treasury with the transfer of leases from agencies.

4.    The Tasmanian Risk Management Fund includes a self‑insurance scheme for the workers’ compensation liabilities of participating agencies. An indication of the Government’s management of workers’ compensation claims may be obtained by comparing the workers’ compensation contributions paid by agencies to the Fund with the workers’ compensation premiums charged by private insurers. The measure is calculated by comparing average agency workers’ compensation contributions, as a proportion of salaries, with the average premium rate of private insurers. The Fund’s performance against the indicator in 2020‑21 has worsened, primarily due to an increase in the Fund’s contribution rate. This increase may partly reflect changes to the Workers Rehabilitation and Compensation Act 1988 that apply to the public sector only.

5.    The whole-of-government financial reports published in 2020‑21 were the Preliminary Outcomes Report 2019‑20, Treasurer’s Annual Financial Report 2019‑20, September Quarterly Report 2020‑21, December Quarterly Report 2020‑21 and the March Quarterly Report 2020‑21.

6.    Returns from government businesses and state‑owned companies comprise dividends, income tax equivalent payments, rate equivalent payments and guarantee fees. The actual end of year outcome for 2020‑21 is consistent with the identified target.

 

 

Output Group 2:    Economic and Fiscal Policy Advice

2.1 Economic Policy Advice

This Output relates to the provision of advice on international, national and Tasmanian economic conditions and developments and forecasting economic trends in the Tasmanian economy. It also includes the provision of advice on economic and reform issues, including inter‑jurisdictional and national economic policy initiatives.

2.2 Regulatory Policy

This Output includes the provision of advice relating to the regulation and taxation of gambling activities and regulation of the sale, supply, promotion and consumption of liquor, State revenue policy, subordinate legislation and the legislation review program.

2.3 Intergovernmental Financial Matters

This Output relates to the provision of advice on all intergovernmental financial matters, including support to the State Grants Commission.

Table 12.4:       Performance Information ‑ Output Group 2

Performance Measure

Unit of

 Measure

2019‑20 Actual

2020‑21 Actual

2021‑22 Target

2022‑23 Target

 

 

 

 

 

 

Economic and Fiscal Policy Advice

 

 

 

 

 

Stakeholder satisfaction rating1

%

na

na

na

>90

Variance between Budget estimate and actual taxation receipts2

%

4.6

13.3                                                                                                                     

<5.0

<5.0

Variance between Budget estimate and actual Australian Government payments3

%

1.9

5.7

<5.0

<5.0

Variance between Budget forecast and ABS estimate of gross state product growth4

% pts

2.2

5.3

<1.0

<1.0

Variance between Budget forecast and ABS estimate of employment growth4

% pts

0.6

3.3

<1.0

<1.0

 

 

 

 

 

 

Notes:

1.    The satisfaction rating of the quality of Treasury’s services is obtained from the results of Treasury’s Stakeholder Survey. Treasury’s Stakeholder Survey was most recently completed in August 2018 for 2017‑18 and is scheduled to next be completed in late 2022.

2.    The accuracy of Treasury’s taxation receipts forecasts can be determined by comparing the State Budget estimate with the actual end-of-year outcome. The 2020‑21 figure has been updated to reflect the audited outcome from the Treasurer’s Annual Financial Report 2020‑21.

3.    The accuracy of Treasury’s Australian Government payments forecasts can be determined by comparing the State Budget estimate with the actual end of year outcome. The 2020‑21 figure has been updated to reflect the audited outcome from the Treasurer’s Annual Financial Report 2020‑21.

4.    The accuracy of Treasury's gross state product and employment growth forecast for the financial years for and prior to 2020‑21 is determined by comparing the relevant Budget forecast with the most recent estimates of growth for the financial year, published by the Australian Bureau of Statistics. Each November, the ABS revises its estimates of GSP growth for past financial years, while estimates of employment growth are revised each month.

 

 

Output Group 3:    Revenue, Superannuation and Regulatory Management Services

3.1 Tax Administration and Revenue Collection

This Output comprises the administration of taxation legislation and the collection of State taxation, including monitoring the compliance of taxpayers with State revenue legislation.

3.2 Regulation and Administration of Liquor and Gaming

This Output provides for the regulation and control of liquor licensing, casino gaming, gaming machines, keno, totalizators, online gaming and minor gaming. It includes the provision of support to the Commissioner for Licensing in discharging the Commissioner’s statutory functions under the Liquor Licensing Act 1990 and the Tasmanian Liquor and Gaming Commission in the discharge of its statutory functions under the Liquor Licensing and Gaming Control Acts.

3.3 Economic Regulation

This Output comprises provision of support to the Tasmanian Economic Regulator in the exercise of its statutory functions which includes the regulation of some activities within the State’s electricity supply industry, economic regulation of the State’s water and sewerage industry, undertaking pricing investigations, pricing inquiries at the request of the Government and investigating competitive neutrality complaints.

3.4 Office of the Superannuation Commission

This Output comprises provision of support to the Superannuation Commission in undertaking statutory functions under the Public Sector Superannuation Reform Act 2016; the Public Sector Superannuation Reform Regulations 2017; and the Public Sector Superannuation Reform (Parliamentary Superannuation) Regulations 2016.

3.5 Administration of Grants, Subsidies and Concessions

This Output includes the administration of unclaimed money and various grants, subsidies and concessions to the Tasmanian community. The Government is committed to providing assistance to the Tasmanian community, which includes, but is not limited to, home builder assistance, First Home Owner Grants, duty concessions, local government rates remission, electricity and water and sewerage concessions, and tax rebates and exemptions.

 

Table 12.5:       Performance Information ‑ Output Group 3

Performance Measure

Unit of

 Measure

2019‑20 Actual

2020‑21 Actual

2021‑22 Target

2022‑23 Target

 

 

 

 

 

 

Revenue, Superannuation and Regulatory Management Services

 

 

 

 

 

Stakeholder satisfaction rating1

%

na

na

na

>90

Total overdue taxation debt as a percentage of total taxation revenue2

%

1.2

1.2

<0.8

<0.8

Percentage of objections in which the Commissioner of State Revenue’s assessment or decision was confirmed3

%

66

78

>60

>60

Revenue Branch operating expenses as a percentage of taxation revenue4

%

0.7

0.7

<1.5

<1.5

Percentage of liquor applications submitted to the Commissioner for Licensing within 40 days of advertising5

%

91

91

>95

>95

Number of member complaints received by the Superannuation Commission6

Number

38

35

<50

<50

 

 

 

 

 

 

Notes:

1.    The satisfaction rating of the quality of Treasury’s services is obtained from the results of Treasury’s Stakeholder Survey, which was most recently completed in August 2018 for 2017‑18. The next survey is scheduled to be completed in late 2022.

2.    The State Revenue Office seeks to ensure that taxpayers are well informed of their obligations and that tax debt stress and overdue taxation debts are minimised. Accordingly, the target is for overdue taxation debt to be a very small percentage of total taxation revenue. The proportions of debt in recent years have been influenced by better identification of overdue debt through systems improvements and a more streamlined and consistent process for moving unpaid amounts through to a debtor management process. The 2020‑21 figure has been updated to reflect the audited outcome from the Department’s 2020‑21 Annual Report.

3.    Objections may be lodged against assessments issued to taxpayers or decisions of the Commissioner, Deputy Commissioner or a delegate of the Commissioner. Treasury seeks to ensure that the original assessments and decisions are accurate. All objections are internally reviewed in the first instance to initially clarify their validity. Only those regarded as valid progress to be determined under the objection process.

4.    An indication of the efficiency of the revenue management services provided by Treasury can be gained by comparing total taxation revenue collected with the operating costs required to administer and collect that revenue. The 2020‑21 figure has been updated to reflect the audited outcome from the Department’s 2020‑21 Annual Report.

5.    Treasury assisted the Commissioner for Licensing by receiving applications for licences, undertaking investigations and providing information to the Commissioner to assist in the determination of whether a licence applicant is qualified in accordance with the requirements of the Liquor Licensing Act.

6.    The Superannuation Commission has a structured and formal complaint mechanism, free to members (details are available at www.rbf.com.au). External disputes of the handling of complaints are addressed by the Tasmanian Ombudsman.

Output Group 4:    Community Assistance 

4.1 Public Trustee Community Service Obligation

This Output comprises the payment of the Community Service Obligation to the Public Trustee for the provision of trustee services to eligible clients.

4.2 Community Support Levy

This Output comprises the collection and disbursement of funds from the Community Support Levy.

Output Group 5:    Renewables, Climate and Future Industries Tasmania      

5.1 Climate Change

This Output relates to the provision of whole-of-government policy advice on climate change issues and delivery of programs that assist with reducing greenhouse gas emissions and building resilience to the impacts of climate change under the Climate Change (State Action) Act 2008. Key functions include:

·      advising on international, national and whole-of-government greenhouse emissions reduction policy and programs across all sectors of the Tasmanian economy;

·      development and implementation of climate change action plans;

·      development of sector‑based emissions reduction and resilience plans;

·      statewide climate change risk assessment;

·      advising on the impacts of climate change on Tasmania’s environment, economy and communities; and

·      annual reporting on Tasmania’s greenhouse gas emissions and activity.

5.2 Energy and Renewables

This Output provides advice on matters relating to energy policy and new and emerging industries with an emphasis on growing Tasmania’s renewable energy base. Areas of focus include:

·      actioning the Tasmanian Renewable Energy Action Plan and the Tasmanian Renewable Hydrogen Action Plan to ensure energy is well placed to contribute to, and enable, future economic growth in Tasmania;

·      engaging with Tasmanian businesses and customers to ensure that policy and regulatory settings continue to offer affordable, reliable and clean energy;

·      facilitating key strategic renewable energy projects including Battery of the Nation, Project Marinus, Renewable Hydrogen and onshore and offshore renewable energy development;

·      encouraging new and emerging industries that can leverage off Tasmania’s renewable energy advantage, while supporting existing industries transition to lower emissions energy;

·      enhancing the affordability and sustainability of energy markets and prices in Tasmania;

·      supporting Shareholder Minister responsibilities for the State‑owned electricity businesses;

·      advancing Tasmania’s interests in National Energy Market policy reforms and developments;

·      monitoring Tasmania’s energy security and continuing to improve industry and Government preparedness to deal with any high impact, low probability energy supply emergencies, including cyber security events;

·      ensuring that Tasmania’s regulatory arrangements are contemporary and meet the new and emerging needs of customers and the energy supply industry;

·      managing programs and projects related to decarbonising Tasmania’s gas sector and promoting the development of alternatives such as hydrogen and bio‑energy; and

·      developing and implementing energy efficiency initiatives and programs.

Table 12.6:       Performance Information ‑ Output Group 5

Performance Measure

Unit of

 Measure

2019‑20 Actual

2020‑21 Actual

2021‑22 Target

2022‑23 Target

 

 

 

 

 

 

Stakeholder satisfaction rating1

%

na

na

na

>90

Progress towards the 200 per cent Tasmanian Renewable Energy Target2,3

Number (GWh)

na

na

10 545

10 590

Proportion of actions completed or on track in the Tasmanian Renewable Energy Action Plan and Tasmanian Renewable Hydrogen Action Plan2

% of total

na

na

>90

>90

Total Energy in Storage remained above the High Reliability Level2,4

Yes/No

na

na

Yes

Yes

Progress towards meeting the Government Electric Vehicle Fleet target5

Number

na

13

50

75

Progress towards implementing the initiatives, projects and actions in the Climate Change Action Plan6

%

na

97

na

>90

 

 

 

 

 

 

Notes:

1.    The satisfaction rating of the quality of Treasury’s services is obtained from the results of Treasury’s Stakeholder Survey, which was most recently completed in August 2018 for 2017‑18. The next survey is scheduled to be completed in late 2022. This survey will include ReCFIT following its establishment as a Division within Treasury in October 2021.

2.    New performance measure introduced in 2021‑22.

3.    This performance measure is calculated on a calendar year basis. The 2021‑22 actual will be based on performance in the 2021 calendar year. The Targets for outyears are set at the 100 per cent renewable generation baseline of 10 500 Gigawatt hours, with a step increase to 15 750 GWh occurring in 2030.

4.    High Reliability Level is a threshold to which reserve water is held for energy security purposes, where the reserve is sufficient to withstand a six month Basslink outage coinciding with a very low inflow sequence, and avoid extreme environmental risk for Great Lake.

5.    The term Electric Vehicles includes battery electric vehicles, plug‑in hybrid and hydrogen fuel cell vehicles. It does not include non plug‑in hybrid vehicles. It also only includes those vehicles held by agencies and not those on order or awaiting delivery. The target established by the Government is: 100 per cent of the Government car fleet (currently approximately 2 500 vehicles) is an electric vehicle by 2030. The unit of measure reported here has been revised to correctly reflect the intended performance measure.   

6.    The 2020‑21 Actual relates to Climate Action 21: Tasmania’s Climate Change Action Plan 2017‑2021 which was finalised on 30 June 2021. Of the 37 actions outlined in Climate Action 21, only one action was discontinued. All other actions are in progress, complete or ongoing. The Government’s next climate change action plan is under development pending the passage of the Climate Change (State Action) Amendment Bill 2021.

 

Detailed Budget Statements

Table 12.7:       Statement of Comprehensive Income

 

2021‑22 

2022‑23 

2023‑24 

2024‑25 

2025‑26 

 

 

 

Forward 

Forward 

Forward 

 

Budget 

Budget 

Estimate 

Estimate 

Estimate 

 

$'000 

$'000 

$'000 

$'000 

$'000 

 

 

 

 

 

 

Revenue and other income

 

 

 

 

 

Appropriation revenue ‑ operating1

67 244 

80 053 

80 335 

74 285 

75 617 

Other revenue from government

2 927 

.... 

.... 

.... 

.... 

Grants2

3 511 

2 886 

1 399 

.... 

.... 

Fees and fines3

8 726 

8 632 

12 855 

12 892 

12 928 

Other revenue

1 296 

1 406 

1 423 

1 439 

1 454 

Total revenue

83 704 

92 977 

96 012 

88 616 

89 999 

Total income

83 704 

92 977 

96 012 

88 616 

89 999 

 

 

 

 

 

 

Expenses

 

 

 

 

 

Employee benefits

46 999 

47 732 

47 567 

47 931 

48 695 

Depreciation and amortisation

1 207 

1 148 

1 311 

1 238 

1 172 

Supplies and consumables4

13 433 

14 987 

13 170 

12 454 

13 076 

Grants and subsidies5

15 458 

22 509 

27 809 

21 277 

20 041 

Other expenses

7 623 

7 098 

7 081 

7 070 

7 061 

Total expenses

84 720 

93 474 

96 938 

89 970 

90 045 

 

 

 

 

 

 

Net result

(1 016)

(497)

(926)

(1 354)

(46)

 

 

 

 

 

 

Other comprehensive income

 

 

 

 

 

Other movements taken directly to equity6

415 

.... 

.... 

.... 

.... 

Total other comprehensive income

415 

.... 

.... 

.... 

.... 

 

 

 

 

 

 

Comprehensive result

(601)

(497)

(926)

(1 354)

(46)

 

 

 

 

 

 

Notes:

1.    The increase in Appropriation revenue ‑ operating primarily reflects funding for 2022‑23 Budget initiatives for Output Group 5 Renewables, Climate and Future Industries Tasmania.

2.    The decrease in Grants from 2022‑23 reflects the profile of funding for the Public Account Reporting, Analytics and Management Information System project, and Australian Government funding for the Marinus Project.

3.    The increase in Fees and fines in 2023‑24 reflects receipts relating to the introduction of the Community Support Fund under the Gaming Control Amendment (Future Gaming Market) Act 2021 that will commence on 1 July 2023.

4.    The variation in Supplies and consumables reflects the profile of expenditure for eInvoicing Adoption by Tasmanian Government Agencies, Transition to Electric Vehicles, and other ReCFIT initiatives.

5.    The variation in Grants and subsidies reflects the timing of ReCFIT grants payments, and the increase in the Public Trustee Community Service Obligation from 2022‑23 and the Community Support Levy from 2023‑24.

6.    Other movements taken directly to equity in 2021‑22 reflects the transfer of responsibilities for ReCFIT from the Departments of Premier and Cabinet and State Growth.

Table 12.8:       Statement of Comprehensive Income ‑ Administered

 

2021‑22 

2022‑23 

2023‑24 

2024‑25 

2025‑26 

 

 

 

Forward 

Forward 

Forward 

 

Budget 

Budget 

Estimate 

Estimate 

Estimate 

 

$'000 

$'000 

$'000 

$'000 

$'000 

 

 

 

 

 

 

Administered revenue and other income

 

 

 

 

 

Fees and fines

1 593 

1 595 

1 614 

1 633 

1 652 

Total administered revenue

1 593 

1 595 

1 614 

1 633 

1 652 

Total administered income

1 593 

1 595 

1 614 

1 633 

1 652 

 

 

 

 

 

 

Administered expenses

 

 

 

 

 

Transfers to the Public Account

1 593 

1 595 

1 614 

1 633 

1 652 

Total administered expenses

1 593 

1 595 

1 614 

1 633 

1 652 

 

 

 

 

 

 

Administered net result

.... 

.... 

.... 

.... 

.... 

 

 

 

 

 

 

Administered comprehensive result

.... 

.... 

.... 

.... 

.... 

 

 

 

 

 

 

 

Table 12.9:       Revenue from Appropriation by Output

 

2021‑22 

2022‑23 

2023‑24 

2024‑25 

2025‑26 

 

 

 

Forward 

Forward 

Forward 

 

Budget 

Budget 

Estimate 

Estimate 

Estimate 

 

$'000 

$'000 

$'000 

$'000 

$'000 

 

 

 

 

 

 

Treasurer

 

 

 

 

 

 

 

 

 

 

 

Output Group 1 ‑ Financial and Resource Management Services

 

 

 

 

 

1.1 Budget Development and Management

3 102 

3 562 

3 712 

3 838 

4 023 

1.2 Financial Management and Accounting Services1

3 388 

4 787 

4 261 

4 120 

4 322 

1.3 Shareholder Advice on Government Businesses

2 735 

2 664 

2 781 

2 874 

3 007 

1.4 Government Property and Accommodation Services

2 178 

2 233 

2 178 

2 250 

2 352 

1.5 Government Procurement Services2

875 

783 

1 341 

1 649 

1 990 

 

12 278 

14 029 

14 273 

14 731 

15 694 

Output Group 2 ‑ Economic and Fiscal Policy Advice

 

 

 

 

 

2.1 Economic Policy Advice3

2 472 

1 919 

1 979 

2 027 

2 101 

2.2 Regulatory Policy4

3 108 

4 113 

4 180 

4 165 

4 336 

2.3 Intergovernmental Financial Matters

2 502 

2 388 

2 429 

2 486 

2 566 

 

8 082 

8 420 

8 588 

8 678 

9 003 

Output Group 3 ‑ Revenue, Superannuation and Regulatory Management Services

 

 

 

 

 

3.1 Tax Administration and Revenue Collection

7 619 

7 856 

8 174 

8 483 

8 928 

3.2 Regulation and Administration of Liquor and Gaming

4 857 

5 135 

5 224 

5 257 

5 549 

3.4 Office of the Superannuation Commission5

14 486 

13 006 

13 221 

13 391 

13 655 

3.5 Administration of Grants, Subsidies and Concessions

1 726 

1 683 

1 703 

1 729 

1 768 

 

28 688 

27 680 

28 322 

28 860 

29 900 

Output Group 4 ‑ Community Assistance

 

 

 

 

 

4.1 Public Trustee Community Service Obligation6

2 212 

4 501 

4 539 

4 457 

4 474 

 

2 212 

4 501 

4 539 

4 457 

4 474 

 

 

 

 

 

 

Operating Services

51 260 

54 630 

55 722 

56 726 

59 071 

 

51 260 

54 630 

55 722 

56 726 

59 071 

 

 

 

 

 

 

Minister for Energy and Renewables

 

 

 

 

 

 

 

 

 

 

 

Output Group 5 ‑ Renewables, Climate and Future Industries Tasmania

 

 

 

 

 

5.2 Energy and Renewables7

10 168 

17 166 

15 531 

13 414 

13 126 

 

10 168 

17 166 

15 531 

13 414 

13 126 

 

 

 

 

 

 

Operating Services

10 168 

17 166 

15 531 

13 414 

13 126 

 

10 168 

17 166 

15 531 

13 414 

13 126 

 

 

 

 

 

 

 

Table 12.9:       Revenue from Appropriation by Output (continued)

 

2021‑22 

2022‑23 

2023‑24 

2024‑25 

2025‑26 

 

 

 

Forward 

Forward 

Forward 

 

Budget 

Budget 

Estimate 

Estimate 

Estimate 

 

$'000 

$'000 

$'000 

$'000 

$'000 

 

 

 

 

 

 

Minister for Environment and Climate Change

 

 

 

 

 

 

 

 

 

 

 

Output Group 5 ‑ Renewables, Climate and Future Industries Tasmania

 

 

 

 

 

5.1 Climate Change8

5 816 

8 257 

9 082 

4 145 

3 420 

 

5 816 

8 257 

9 082 

4 145 

3 420 

 

 

 

 

 

 

Operating Services

5 816 

8 257 

9 082 

4 145 

3 420 

 

5 816 

8 257 

9 082 

4 145 

3 420 

 

 

 

 

 

 

Department of Treasury and Finance

 

 

 

 

 

Total Operating Services

67 244 

80 053 

80 335 

74 285 

75 617 

 

67 244 

80 053 

80 335 

74 285 

75 617 

 

 

 

 

 

 

Appropriation Rollover

2 927 

.... 

.... 

.... 

.... 

 

 

 

 

 

 

Total Revenue from Appropriation

70 171 

80 053 

80 335 

74 285 

75 617 

 

 

 

 

 

 

Controlled Revenue from Appropriation

70 171 

80 053 

80 335 

74 285 

75 617 

 

70 171 

80 053 

80 335 

74 285 

75 617 

 

 

 

 

 

 

Notes:

1.    The increase in Financial Management and Accounting Services reflects funding for the eInvoicing Adoption by Tasmanian Government Agencies initiative.

2.    The increase in Government Procurement Services from 2023‑24 reflects funding for the Transition to Electric Vehicles initiative.

3.    The decrease in Economic Policy Advice in 2022‑23 reflects the reallocation of resources for the provision of energy policy issues to ReCFIT.

4.    The increase in Regulatory Policy reflects ongoing support for the Future Gaming Markets policy.

5.    The decrease in Office of the Superannuation Commission from 2022‑23 reflects savings achieved in providing superannuation member services.

6.    The increase in Public Trustee Community Service Obligation from 2022‑23 reflects additional funding for services under the Community Service Obligation Agreement and the implementation of recommendations from the Independent Review.

7.    The variation in Energy and Renewables reflects the timing of funding for the Government Boiler Replacement Program and funding provided for prior Budget initiatives.

8.    The variation in Climate Change reflects the timing of funding provided for prior Budget initiatives.

Table 12.10:      Administered Revenue

 

2021‑22 

2022‑23 

2023‑24 

2024‑25 

2025‑26 

 

 

 

Forward 

Forward 

Forward 

 

Budget 

Budget 

Estimate 

Estimate 

Estimate 

 

$'000 

$'000 

$'000 

$'000 

$'000 

 

 

 

 

 

 

Revenue Collected on Behalf of the Public Account

 

 

 

 

 

Other Regulatory Fees

1 593 

1 595 

1 614 

1 633 

1 652 

 

1 593 

1 595 

1 614 

1 633 

1 652 

 

 

 

 

 

 

Total Administered Revenue

1 593 

1 595 

1 614 

1 633 

1 652 

 

 

 

 

 

 

 

Table 12.11:      Administered Expenses

 

2021‑22 

2022‑23 

2023‑24 

2024‑25 

2025‑26 

 

 

 

Forward 

Forward 

Forward 

 

Budget 

Budget 

Estimate 

Estimate 

Estimate 

 

$'000 

$'000 

$'000 

$'000 

$'000 

 

 

 

 

 

 

Transfers to the Public Account

1 593 

1 595 

1 614 

1 633 

1 652 

 

 

 

 

 

 

Total Administered Expenses

1 593 

1 595 

1 614 

1 633 

1 652 

 

 

 

 

 

 

 

Table 12.12:      Statement of Financial Position as at 30 June

 

2022 

2023 

2024 

2025 

2026 

 

 

 

Forward 

Forward 

Forward 

 

Budget 

Budget 

Estimate 

Estimate 

Estimate 

 

$'000 

$'000 

$'000 

$'000 

$'000 

 

 

 

 

 

 

Assets

 

 

 

 

 

Financial assets

 

 

 

 

 

Cash and deposits

9 951 

10 418 

10 635 

10 835 

10 959 

Receivables

595 

298 

300 

303 

306 

Other financial assets

649 

792 

806 

821 

836 

 

11 195 

11 508 

11 741 

11 959 

12 101 

 

 

 

 

 

 

Non‑financial assets

 

 

 

 

 

Property, plant and equipment

740 

641 

600 

569 

547 

Heritage and cultural assets

158 

155 

155 

155 

155 

Intangibles

8 082 

8 035 

7 212 

6 124 

5 093 

Other assets

526 

579 

589 

599 

609 

 

9 506 

9 410 

8 556 

7 447 

6 404 

 

 

 

 

 

 

Total assets

20 701 

20 918 

20 297 

19 406 

18 505 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

Payables

1 264 

852 

858 

864 

870 

Interest bearing liabilities

1 

.... 

.... 

.... 

.... 

Employee benefits

10 175 

11 291 

11 590 

12 047 

11 186 

Other liabilities

543 

59 

59 

59 

59 

Total liabilities

11 983 

12 202 

12 507 

12 970 

12 115 

 

 

 

 

 

 

Net assets (liabilities)

8 718 

8 716 

7 790 

6 436 

6 390 

 

 

 

 

 

 

Equity

 

 

 

 

 

Contributed capital

415 

.... 

.... 

.... 

.... 

Reserves

11 

11 

11 

11 

11 

Accumulated funds

8 292 

8 705 

7 779 

6 425 

6 379 

Total equity

8 718 

8 716 

7 790 

6 436 

6 390 

 

 

 

 

 

 

 

Table 12.13:      Statement of Cash Flows

 

2021‑22 

2022‑23 

2023‑24 

2024‑25 

2025‑26 

 

 

 

Forward 

Forward 

Forward 

 

Budget 

Budget 

Estimate 

Estimate 

Estimate 

 

$'000 

$'000 

$'000 

$'000 

$'000 

 

 

 

 

 

 

Cash flows from operating activities

 

 

 

 

 

Cash inflows

 

 

 

 

 

Appropriation receipts ‑ operating

67 244 

80 053 

80 335 

74 285 

75 617 

Appropriation receipts ‑ other

2 927 

.... 

.... 

.... 

.... 

Grants

3 794 

2 886 

1 399 

.... 

.... 

Fees and fines

8 690 

8 616 

12 839 

12 874 

12 910 

GST receipts

1 600 

1 600 

1 600 

1 600 

1 600 

Other cash receipts

1 296 

1 406 

1 423 

1 439 

1 454 

Total cash inflows

85 551 

94 561 

97 596 

90 198 

91 581 

 

 

 

 

 

 

Cash outflows

 

 

 

 

 

Employee benefits

(41 043)

(41 392)

(41 202)

(41 210)

(42 823)

Superannuation

(5 563)

(5 915)

(6 068)

(6 264)

(6 733)

GST payments

(1 600)

(1 600)

(1 600)

(1 600)

(1 600)

Grants and subsidies

(15 458)

(22 509)

(27 809)

(21 277)

(20 041)

Supplies and consumables

(13 439)

(14 989)

(13 172)

(12 458)

(13 080)

Other cash payments

(7 623)

(7 098)

(7 081)

(7 070)

(7 061)

Total cash outflows

(84 726)

(93 503)

(96 932)

(89 879)

(91 338)

 

 

 

 

 

 

Net cash from (used by) operating activities

825 

1 058 

664 

319 

243 

 

 

 

 

 

 

Cash flows from investing activities

 

 

 

 

 

Payments for acquisition of non‑financial assets

(1 286)

(1 797)

(447)

(119)

(119)

Equity injections and cash flows from restructuring

1 408 

.... 

.... 

.... 

.... 

Net cash from (used by) investing activities

122 

(1 797)

(447)

(119)

(119)

 

 

 

 

 

 

Net increase (decrease) in cash and cash equivalents held

947 

(739)

217 

200 

124 

 

 

 

 

 

 

Cash and deposits at the beginning of the reporting period

9 004 

11 157 

10 418 

10 635 

10 835 

Cash and deposits at the end of the reporting period

9 951 

10 418 

10 635 

10 835 

10 959 

 

 

 

 

 

 

 

Table 12.14:      Statement of Cash Flows ‑ Administered

 

2021‑22 

2022‑23 

2023‑24 

2024‑25 

2025‑26 

 

 

 

Forward 

Forward 

Forward 

 

Budget 

Budget 

Estimate 

Estimate 

Estimate 

 

$'000 

$'000 

$'000 

$'000 

$'000 

 

 

 

 

 

 

Cash flows from operating activities

 

 

 

 

 

Cash inflows

 

 

 

 

 

Fees and fines

1 593 

1 595 

1 614 

1 633 

1 652 

Total cash inflows

1 593 

1 595 

1 614 

1 633 

1 652 

 

 

 

 

 

 

Cash outflows

 

 

 

 

 

Transfers to the Public Account

(1 593)

(1 595)

(1 614)

(1 633)

(1 652)

Total cash outflows

(1 593)

(1 595)

(1 614)

(1 633)

(1 652)

 

 

 

 

 

 

Net increase (decrease) in cash and cash equivalents held

.... 

.... 

.... 

.... 

.... 

 

 

 

 

 

 

Cash and deposits at the beginning of the reporting period

.... 

.... 

.... 

.... 

.... 

Cash and deposits at the end of the reporting period

.... 

.... 

.... 

.... 

....