The Finance‑General Division is administered by the Department of Treasury and Finance.
The major activities transacted through Finance‑General include the management of the Government’s financial assets and liabilities, meeting the Government’s pension and other superannuation commitments, administration of the Tasmanian Risk Management Fund, management of the Government’s light vehicle fleet and property portfolio and payments to government businesses.
Certain provisions have been made in the Public Account to meet future liabilities of the Government, including a provision within the Tasmanian Risk Management Fund (Specific Purpose Account) for workers’ compensation and other insurable risks in respect of inner‑Budget agencies. Information on the Government’s superannuation liabilities and administration of the Tasmanian Risk Management Fund is provided in chapter 7 of The Budget Budget Paper No 1.
Finance‑General also includes funding to assist with the replacement of the Spirits of Tasmania (I and II) within the TT‑Line Vessel Replacement Fund.
Outputs of Finance‑General are provided under the following Output Groups:
· Output Group 1 ‑ Debt Servicing and Management;
· Output Group 2 ‑ Employee Related Costs;
· Output Group 3 ‑ Government Businesses;
· Output Group 4 ‑ Miscellaneous;
· Output Group 89 ‑ Public Building Maintenance Program; and
· Output Group 90 ‑ COVID‑19 Response and Recovery.
Table 4.1 provides an Output Group Expense Summary for Finance‑General.
Notes:
1. The increase in Debt Servicing primarily reflects the increase in borrowings to support the estimated General Government Sector cash deficit together with the impact of forecast higher interest rates.
2. The increase in Interest on Sundry Deposits is primarily due to variations in cash balances and forecast higher interest rates.
3. The increase in Government Businesses in 2022‑23 primarily reflects funding provided to Tasmanian Irrigation Pty Ltd for Tranche 3 Scheme Business Case development, legacy asset studies and project development and delivery costs, and funding provided to Metro Tasmania Pty Ltd to implement a common ticketing system.
4. The Treasurer’s Reserve has been maintained at $150 million in 2022‑23 to meet unexpected costs which could not be reasonably foreseen at the time of developing the 2022‑23 Budget, particularly in relation to the COVID‑19 pandemic. Over the Forward Estimates, the Treasurer’s Reserve is $50 million per annum.
5. The increase in Miscellaneous from 2023‑24 primarily reflects funding to be allocated to agencies for the continuation of time limited programs over the Forward Estimates.
6. The decrease in Payment to Australian Taxation Office: GST Administration from 2023‑24 primarily reflects a reduction in GST compliance expenditure.
7. The increase in Tasmanian Risk Management Fund in 2022-23 primarily reflects changes in potential claim estimates provided by the State’s Actuary.
8. The increase in Property Management Services in 2022‑23 primarily reflects the recognition of additional lease contracts under AASB 16 Leases for major office accommodation. The decrease from 2023‑24 primarily reflects movements in the discount rate used on lease contracts, depreciation of right‑of‑use assets and expiring lease contracts.
9. The decrease in Ex‑Gratia Assistance reflects lower expected payments to be made under section 55 of the Financial Management Act 2016.
10. The decrease in the Public Building Maintenance Fund reflects the completion of maintenance work funded under this program as part of the Government’s COVID‑19 Response and Recovery measures.
11. The variations in Local Government $200 million Interest Free Loans reflect revised cash flows based on approved council loan schedules and the conclusion of the Program in 2024‑25.
12. The decrease in Tasmanian HomeBuilder Grant in 2022‑23 reflects the expected finalisation of payments under the Program.
13. For further information on the variation in Grants and Subsidies see Table 4.5 Administered Expenses.
14.
This Output provides for the interest cost incurred in managing the State Government’s debt portfolio.
This Output provides for the payment of interest on balances held in certain Specific Purpose Accounts and Agency Trust Accounts.
This Output meets the Government’s share of superannuation and pension costs in respect of defined benefit schemes.
The superannuation and pension expense estimates include service costs in respect of unfunded superannuation benefits and nominal interest costs on defined benefit liabilities. The estimated value of the expense is based on the most recent actuarial assessment of the superannuation liability.
Further information in relation to the General Government superannuation liability can be found in chapter 7 of The Budget Budget Paper No 1.
This Output provides funding to Sustainable Timber Tasmania to maintain its firefighting capacity and assist with fighting wild fires.
This Output makes provision to support the State Fire Commission in funding excess firefighting costs, to support the Bushfire Mitigation Program and to meet the State Government’s annual funding contribution to the State Fire Commission in accordance with section 101 of the Fire Service Act 1979. Further information in relation to the Commission can be found in chapter 27 of this Budget Paper.
The introduction of a Point of Consumption tax on wagering was announced in the 2019‑20 Budget and a commitment was provided to share the net benefits between Government and the racing industry. It was agreed that 80 per cent of the additional revenue generated from the POC tax would be provided to Tasracing Pty Ltd to support the thoroughbred, harness and greyhound codes of racing in Tasmania through investment in stakes, infrastructure and animal welfare. The POC tax commenced on 1 January 2020.
This commitment, which commenced in 2021‑22, provides $2 million, over four years, to support Metro Tasmania Pty Ltd to implement its Intelligent Transport Systems project.
This commitment provides $29.5 million, over four years, to support Metro Tasmania Pty Ltd to implement a modern, integrated and intelligent common ticketing solution that will apply to all general access public transport operators.
Funding of $24.2 million is provided to Tasmanian Irrigation Pty Ltd over the Budget and Forward Estimates to support the preparation and development of the Tranche 3 irrigation scheme business cases, legacy assets studies and project development and delivery costs.
This Output provides funding for program management expenditure associated with the Digital Transformation Priority Expenditure Program. Funding for the Tasmanian Government Radio Network has been transferred to the Department of Police, Fire and Emergency Management from 2021‑22.
This Output provides funding to meet expenditure that could not reasonably be foreseen at the time of developing the 2022‑23 Budget and which is essential for timely and efficient financial management.
This Output provides funding for miscellaneous payments including expenditure related to Government Business Structural Reviews. Funding of up to $180 million is also allocated over three years in the Forward Estimates to be provided to agencies for the continuation of time limited programs.
Under the Intergovernmental Agreement on Federal Financial Relations, the states and territories compensate the Australian Taxation Office for the agreed costs incurred in administering the goods and services tax. The states and territories share the GST administration costs on a per capita basis. This Output reflects Tasmania’s contribution to collection and compliance costs.
This Output represents anticipated claim and administration costs for the Tasmanian Risk Management Fund. Claim expenditure estimates for the Fund reflect the most recent actuarial advice.
All direct transactions associated with whole‑of‑government light vehicle fleet management activities are recorded in the Government Car Fleet Account within the Public Account.
Revenue in the Government Car Fleet Account is derived from the sale of vehicles, the proceeds of vehicle write‑offs, miscellaneous revenue items and receipts from the Government’s Fleet Manager for vehicle usage charges, registration payments and return of insurance excesses for agencies.
Estimated expenses for this Output include motor vehicle registration expenses, estimated depreciation on motor vehicles and the refund of insurance excesses to agencies.
Property Management Services includes building depreciation and rental and other occupancy costs relating to major office accommodation.
The Department of Treasury and Finance works with agencies to ensure that all leases are reviewed leading up to expiry to achieve the best use of office space and optimise whole‑of‑government outcomes in relation to more efficient and effective management of the Government’s leased office accommodation. Strategic divestments of the State’s property portfolio proposed by the Government are managed, by Treasury, on a case‑by‑case basis.
The Infrastructure Investment Project Planning Output provides annual funding to support the early planning stages of major infrastructure projects including as part of the Structured Infrastructure Investment Review Process.
Under section 55 of the Financial Management Act, if the Treasurer is satisfied that it is appropriate to do so because of special circumstances, the Treasurer may authorise an amount to be paid to a person even though the payment would not otherwise be authorised by law or be required to meet a legal liability.
Table 4.2 provides financial information for Finance‑General’s Capital Investment Program. More information on the Capital Investment Program is provided in chapter 6 of The Budget Budget Paper No 1.
|
|
Estimated |
2022‑23 |
2023‑24 |
2024‑25 |
2025‑26 |
|
|
Total |
|
Forward |
Forward |
Forward |
|
|
Cost |
Budget |
Estimate |
Estimate |
Estimate |
|
|
$'000 |
$'000 |
$'000 |
$'000 |
$'000 |
|
Existing Projects |
|
|
|
|
|
|
|
|
|
|
|
|
|
Treasurer |
|
|
|
|
|
|
Digital Transformation Priority Expenditure Program |
Ongoing |
17 493 |
19 813 |
25 000 |
29 000 |
|
|
|
|
|
|
|
|
Total CIP Allocations |
|
17 493 |
19 813 |
25 000 |
29 000 |
|
|
|
|
|
|
|
|
|
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 |
|
|
|
|
|
|
Appropriation revenue ‑ operating1 |
943 758 |
956 815 |
981 894 |
905 559 |
940 345 |
|
Appropriation revenue ‑ capital1 |
20 033 |
12 868 |
19 813 |
25 000 |
29 000 |
|
Other revenue from government1 |
30 409 |
13 912 |
.... |
.... |
.... |
|
Grants2 |
4 071 125 |
4 513 450 |
4 792 361 |
4 830 160 |
4 798 745 |
|
Taxation2 |
1 317 863 |
1 472 630 |
1 568 302 |
1 638 923 |
1 710 158 |
|
Sales of goods and services |
162 385 |
185 593 |
180 713 |
189 216 |
198 794 |
|
Interest3 |
5 031 |
24 371 |
31 701 |
31 191 |
32 813 |
|
Dividend, tax and rate equivalent income4 |
383 826 |
336 242 |
294 876 |
311 169 |
330 974 |
|
Other revenue |
118 416 |
119 540 |
118 582 |
118 582 |
118 582 |
|
Total administered revenue |
7 052 846 |
7 635 421 |
7 988 242 |
8 049 800 |
8 159 411 |
|
Net gain/(loss) on non‑financial assets |
4 623 |
8 839 |
7 085 |
6 365 |
3 893 |
|
Other gains/(losses) from other economic flows5 |
(6 863) |
26 675 |
(10 490) |
(13 400) |
(10 525) |
|
Total administered income |
7 050 606 |
7 670 935 |
7 984 837 |
8 042 765 |
8 152 779 |
|
|
|
|
|
|
|
|
Administered expenses |
|
|
|
|
|
|
Employee benefits6 |
257 965 |
289 191 |
280 872 |
271 886 |
262 726 |
|
Depreciation and amortisation |
51 189 |
55 837 |
54 924 |
52 069 |
49 972 |
|
Supplies and consumables7 |
289 906 |
296 326 |
197 833 |
205 782 |
213 812 |
|
Grants and subsidies8 |
547 493 |
753 738 |
850 700 |
792 294 |
673 494 |
|
Borrowing costs9 |
42 648 |
87 202 |
138 780 |
175 966 |
207 208 |
|
Transfers to the Public Account |
6 869 855 |
7 302 067 |
7 160 418 |
7 104 217 |
7 032 414 |
|
Total administered expenses |
8 059 056 |
8 784 361 |
8 683 527 |
8 602 214 |
8 439 626 |
|
|
|
|
|
|
|
|
Administered net result |
(1 008 450) |
(1 113 426) |
(698 690) |
(559 449) |
(286 847) |
|
|
|
|
|
|
|
|
Administered other comprehensive income |
|
|
|
|
|
|
Net gain/(loss) on revaluation of equity investment10 |
(181 210) |
(51 139) |
(63 826) |
(44 980) |
(98 028) |
|
Other movements taken directly to equity |
(1) |
(1) |
(1) |
(1) |
(1) |
|
Total administered other comprehensive income |
(181 211) |
(51 140) |
(63 827) |
(44 981) |
(98 029) |
|
|
|
|
|
|
|
|
Administered comprehensive result |
(1 189 661) |
(1 164 566) |
(762 517) |
(604 430) |
(384 876) |
|
|
|
|
|
|
|
Notes:
1. Explanations for significant variances and further information can be found in Table 4.4 Revenue from Appropriation by Output.
2. Explanations for significant variances and further information can be found in chapter 5 of The Budget Budget Paper No 1.
3. The increase in Interest from 2022‑23 reflects the impact of higher forecast earning rates.
4. Further information on Dividend, tax and rate equivalent income can be found in chapter 5 of The Budget Budget Paper No 1.
5. Other gains/(losses) from other economic flows reflects the estimated change in deferred tax assets and liabilities held by government businesses.
6. The variation in Employee benefits from 2022‑23 primarily reflects the latest actuarial assessments of superannuation expenditure.
7. The decrease in Supplies and consumables from 2023‑24 reflects a reduction in the Treasurer’s Reserve.
8. Explanations for the variation in Grants and subsidies can be found in Table 4.5 Administered Expenses.
9. The increase in Borrowing costs primarily reflects increases in borrowings to support the estimated General Government Sector cash deficit together with the impact of forecast higher interest rates.
10. Net gain/(loss) on revaluation of equity investment reflects the estimated change in the value of net assets of government businesses, excluding any equity contributions, between 1 July and 30 June each year.
|
|
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 ‑ Debt Servicing and Management |
|
|
|
|
|
|
1.1 Debt Servicing1 |
36 207 |
75 428 |
126 125 |
163 447 |
196 352 |
|
1.2 Interest on Sundry Deposits2 |
1 394 |
5 299 |
11 801 |
14 063 |
14 874 |
|
|
37 601 |
80 727 |
137 926 |
177 510 |
211 226 |
|
Output Group 2 ‑ Employee Related Costs |
|
|
|
|
|
|
2.1 Superannuation and Pensions |
350 |
350 |
350 |
350 |
350 |
|
|
350 |
350 |
350 |
350 |
350 |
|
Output Group 3 ‑ Government Businesses |
|
|
|
|
|
|
3.1 Sustainable Timber Tasmania |
2 000 |
2 000 |
2 000 |
2 000 |
2 000 |
|
3.2 State Fire Commission |
12 596 |
12 596 |
12 596 |
12 596 |
12 596 |
|
3.4 Government Businesses3 |
189 752 |
225 806 |
182 103 |
52 503 |
25 714 |
|
|
204 348 |
240 402 |
196 699 |
67 099 |
40 310 |
|
Output Group 4 ‑ Miscellaneous |
|
|
|
|
|
|
4.1 Information and Communication Technology |
140 |
.... |
.... |
.... |
.... |
|
4.2 Treasurer's Reserve4 |
150 000 |
150 000 |
50 000 |
50 000 |
50 000 |
|
4.3 Miscellaneous5 |
1 424 |
947 |
40 940 |
60 997 |
81 005 |
|
4.4 Payment to Australian Tax Office: GST Administration6 |
14 411 |
14 308 |
10 147 |
10 096 |
10 103 |
|
4.7 Property Management Services |
13 911 |
12 600 |
12 716 |
12 837 |
7 943 |
|
4.8 Infrastructure Investment Project Planning |
2 000 |
2 000 |
2 000 |
2 000 |
2 000 |
|
4.9 Ex‑Gratia Assistance7 |
4 700 |
300 |
300 |
300 |
300 |
|
|
186 586 |
180 155 |
116 103 |
136 230 |
151 351 |
|
Output Group 89 ‑ Public Building Maintenance Program |
|
|
|
|
|
|
89.1 Public Building Maintenance Program8 |
12 952 |
356 |
.... |
.... |
.... |
|
|
12 952 |
356 |
.... |
.... |
.... |
|
Output Group 90 ‑ COVID‑19 Response and Recovery |
|
|
|
|
|
|
90.2 Local Government $200 million Interest Free Loans9 |
1 381 |
1 623 |
1 170 |
286 |
.... |
|
90.8 Tasmanian HomeBuilder Grant10 |
23 440 |
5 720 |
.... |
.... |
.... |
|
|
24 821 |
7 343 |
1 170 |
286 |
.... |
|
|
2021‑22 |
2022‑23 |
2023‑24 |
2024‑25 |
2025‑26 |
|
|
|
|
Forward |
Forward |
Forward |
|
|
Budget |
Budget |
Estimate |
Estimate |
Estimate |
|
|
$'000 |
$'000 |
$'000 |
$'000 |
$'000 |
|
|
|
|
|
|
|
|
Grants and Subsidies |
164 557 |
123 245 |
201 188 |
175 991 |
177 447 |
|
|
|
|
|
|
|
|
Capital Investment Program |
20 033 |
12 868 |
19 813 |
25 000 |
29 000 |
|
|
|
|
|
|
|
|
Finance‑General |
|
|
|
|
|
|
Total Operating Services |
631 215 |
632 578 |
653 436 |
557 466 |
580 684 |
|
Total Capital Services |
20 033 |
12 868 |
19 813 |
25 000 |
29 000 |
|
|
651 248 |
645 446 |
673 249 |
582 466 |
609 684 |
|
|
|
|
|
|
|
|
Reserved by Law |
|
|
|
|
|
|
Payments to Municipalities under the Local Government (Rates and Charges Remissions) Act 1991 |
18 651 |
19 199 |
19 648 |
19 990 |
20 338 |
|
Payments under the Public Sector Superannuation Reform (Parliamentary Superannuation) Regulations 2016 |
1 019 |
1 000 |
988 |
972 |
954 |
|
Superannuation Benefits Payable under the Governor of Tasmania Act 1982 |
113 |
111 |
111 |
111 |
110 |
|
Superannuation Benefits Payable under the Judges' Contributory Pensions Act 1968 |
1 912 |
1 903 |
1 906 |
1 903 |
1 893 |
|
Superannuation Benefits Payable under the Public Sector Superannuation Reform Act 2016 |
290 575 |
301 753 |
305 533 |
324 846 |
336 096 |
|
Superannuation Benefits Payable under the Solicitor‑General Act 1983 |
273 |
271 |
272 |
271 |
270 |
|
|
312 543 |
324 237 |
328 458 |
348 093 |
359 661 |
|
|
|
|
|
|
|
|
Appropriation Rollover |
30 409 |
13 912 |
.... |
.... |
.... |
|
|
|
|
|
|
|
|
Total Revenue from Appropriation |
994 200 |
983 595 |
1 001 707 |
930 559 |
969 345 |
|
|
|
|
|
|
|
|
Administered Revenue from Appropriation |
994 200 |
983 595 |
1 001 707 |
930 559 |
969 345 |
|
|
994 200 |
983 595 |
1 001 707 |
930 559 |
969 345 |
|
|
|
|
|
|
|
Notes:
1. The increase in Debt Servicing primarily reflects increases in borrowings to support the estimated General Government Sector cash deficit together with the impact of forecast higher interest rates.
2. The increase in Interest on Sundry Deposits is primarily due to variations in cash balances and forecast higher interest rates.
3. The variation in Government Businesses primarily reflects changes in equity contributions provided through the General Government Sector. Further details on equity contributions can be found in chapter 6 of The Budget Budget Paper No 1.
4. The Treasurer’s Reserve has been maintained at $150 million in 2022‑23 to meet unexpected costs which could not be reasonably foreseen at the time of developing the 2022‑23 Budget, particularly in relation to the COVID‑19 pandemic. Over the Forward Estimates, the Treasurer’s Reserve decreases to $50 million per annum.
5. The decrease in Miscellaneous in 2022‑23 primarily reflects the timing of grant expenditure. The increase from 2023‑24 primarily reflects funding to be allocated to agencies for the continuation of time limited programs over the Forward Estimates.
6. The decrease in Payment to the Australian Taxation Office: GST Administration from 2023‑24 primarily reflects a reduction in GST compliance expenditure.
7. The decrease in Ex‑Gratia Assistance reflects lower expected payments to be made under section 55 of the Financial Management Act.
8. The decrease in the Public Building Maintenance Fund reflects the completion of maintenance work funded under this Program as part of the Government’s COVID‑19 Response and Recovery measures.
9. The variations in Local Government $200 million Interest Free Loans reflect revised cash flows based on approved council loan schedules and the conclusion of the Program in 2024‑25.
10. The decrease in Tasmanian HomeBuilder Grant in 2022‑23 reflects the expected finalisation of payments under the Program.
|
|
2021‑22 |
2022‑23 |
2023‑24 |
2024‑25 |
2025‑26 |
|
|
|
|
Forward |
Forward |
Forward |
|
|
Budget |
Budget |
Estimate |
Estimate |
Estimate |
|
|
$'000 |
$'000 |
$'000 |
$'000 |
$'000 |
|
|
|
|
|
|
|
|
Grants and Subsidies |
|
|
|
|
|
|
Energy Retailer Concession1 |
56 306 |
44 852 |
45 904 |
46 978 |
48 079 |
|
First Home Builder Assistance2 |
26 280 |
25 530 |
13 590 |
3 990 |
3 990 |
|
Local Government: Grants3 |
55 004 |
36 518 |
124 503 |
108 867 |
111 819 |
|
Management of Australian Government Funding4 |
289 111 |
562 999 |
558 926 |
506 380 |
370 624 |
|
Natural Disaster Relief Scheme5 |
3 091 |
562 |
532 |
532 |
532 |
|
Other Grants and Subsidies6 |
9 407 |
34 |
34 |
34 |
34 |
|
Payments under Local Government (Rates and Charges Remissions) Act 1991 |
18 651 |
19 199 |
19 648 |
19 990 |
20 338 |
|
Payroll Tax Assistance7 |
7 320 |
6 875 |
6 674 |
5 418 |
2 462 |
|
TT‑Line Pensioner Concession Subsidy |
342 |
342 |
342 |
342 |
342 |
|
Water and Sewerage Concessions and Subsidies |
9 208 |
9 420 |
9 637 |
9 858 |
10 217 |
|
|
474 720 |
706 331 |
779 790 |
702 389 |
568 437 |
|
|
|
|
|
|
|
|
Transfers to the Public Account |
6 869 855 |
7 302 067 |
7 160 418 |
7 104 217 |
7 032 414 |
|
|
|
|
|
|
|
|
Other Administered Expenses |
714 481 |
775 963 |
743 319 |
795 608 |
838 775 |
|
|
|
|
|
|
|
|
Total Administered Expenses |
8 059 056 |
8 784 361 |
8 683 527 |
8 602 214 |
8 439 626 |
|
|
|
|
|
|
|
Notes:
1. The decrease in Energy Retailer Concession in 2022‑23 primarily reflects the $12 million contribution to the Winter Energy Supplement in 2021‑22.
2. The decrease in First Home Builder Assistance in 2023‑24 reflects the Government’s decision to extend the $30 000 First Home Owner Grant for a further 12 months to 30 June 2023.
3. The decrease in Local Government: Grants in 2022‑23 reflects an advanced payment which was received in 2021‑22 in relation to the 2022‑23 entitlement.
4. The variation in Management of Australian Government Funding reflects the timing of grant payments associated with National Partnership agreements.
5. The decrease in Natural Disaster Relief Scheme in 2022‑23 reflects the finalisation of costs associated with the May 2018 extreme weather event, the 2018‑19 bushfire event and the 2020 and 2021 storm events.
6. The decrease in Other Grants and Subsidies in 2022‑23 reflects the transfer of administration of the Headworks Holiday funding to the Department of State Growth.
7. The variation in Payroll Tax Assistance primarily relates to the Government’s decision to extend the Payroll Tax Rebate for eligible apprentices, trainees and youth employees by a further 24 months to 30 June 2024, and expenditure gradually declining from 2022‑23 reflecting that the rebate is time‑limited for eligible employees.
In accordance with the Electricity Supply Industry Act 1995, the Government entered into a Community Service Obligation Agreement with authorised electricity retailers to provide a range of concessions to eligible low income households and pensioners and those requiring specified life support equipment to assist them in meeting the costs of electricity. The decrease in the Electricity Retailer Concession in 2022‑23 reflects the one‑off Winter Energy Supplement in 2021‑22 and a decrease in the number of concession customers as the economic impact of the COVID‑19 pandemic dissipates. The increase over the Forward Estimates period reflects the historical average concession growth rate.
The Government has extended the $30 000 First Home Owner Grant for a further 12 months to 30 June 2023, which is expected to support ongoing demand for newly constructed homes by first home buyers. The $30 000 FHOG now applies to all eligible contracts entered into from 1 April 2021 until 30 June 2023 (inclusive).
Local Government Grants includes funding under the Australian Local Government (Financial Assistance) Act 1995, whereby the Australian Government provides funds to the states for distribution as general purpose grants to local government. This funding includes general purpose funding and identified local road funding.
A Tasmanian Natural Disaster Relief Scheme, administered by the Department of Premier and Cabinet, is funded within Finance‑General. This Scheme provides for payments to local government authorities for the eligible costs of restoring or replacing essential public assets, which have been damaged as a direct result of a disaster, to a pre‑disaster standard. Disasters for which relief is available are determined at the national level and include any one of, or a combination of, the following natural hazards: bushfire; earthquake; flood; storm; cyclone; storm surge; landslide; tsunami; meteorite strike or tornado.
Funding of $34 000 has been included for Other Grants and Subsidies in the 2022‑23 Budget and Forward Estimates, for minor expenses relating to the Rosetta and Berriedale landslip accounts.
In accordance with the provisions of the Local Government (Rates and Charges Remissions) Act, the pensioner rates remission scheme provides a concession of 30 per cent off council rates and charges, up to a defined maximum annual amount for eligible pensioners. The maximum concession is indexed annually to ensure that rate relief increases in line with inflation.
The Payroll Tax Rebate Scheme provides payroll tax relief to businesses operating in Tasmania that employ apprentices, trainees and youth employees. The Scheme was extended to 30 June 2024 and applies to all new apprentices and trainees employed before that date. The payroll tax rebate is provided for a two year period from the date that apprentices and trainees are employed and one year from the date that youth employees are employed.
The Government is continuing its financial assistance package to Qantas, including payroll tax reimbursement of up to $1 million per annum for 10 years from 2014‑15, ending with a final reimbursement of up to $250 000 in 2024‑25. Funding is limited to the sum of $1 million in any one financial year or the amount of payroll tax paid in that year, whichever is the lesser sum. This payroll tax relief is part of a broader agreement with Qantas to secure existing Qantas Contact Centre positions and, through the consolidation of Australia wide operations, provides for employment at the Hobart Contact Centre.
The Government provides a subsidy to TT‑Line Company Pty Ltd for the additional cost of providing concession arrangements to pensioners following an extension by the Australian Government, from 1 April 1993, of eligibility for the Pensioner Concession Card.
Under the Water and Sewerage Industry
(Community Service Obligation) Act 2009, concessions are made
available to eligible low income households and pensioners to assist them in
meeting the cost of services provided by Tasmanian Water and Sewerage Corporation
Pty Ltd. Payments are made to TasWater which passes the benefit onto eligible
concession card holders as lower service charges.
|
|
2022 |
2023 |
2024 |
2025 |
2026 |
|
|
|
|
Forward |
Forward |
Forward |
|
|
Budget |
Budget |
Estimate |
Estimate |
Estimate |
|
|
$'000 |
$'000 |
$'000 |
$'000 |
$'000 |
|
Assets |
|
|
|
|
|
|
Financial assets |
|
|
|
|
|
|
Cash and deposits1 |
1 066 972 |
687 550 |
714 979 |
635 738 |
697 549 |
|
Investments2 |
43 528 |
601 880 |
601 410 |
600 940 |
600 470 |
|
Receivables |
96 201 |
150 052 |
150 052 |
150 052 |
150 052 |
|
Equity investments3 |
5 028 582 |
5 595 222 |
5 760 098 |
5 832 487 |
5 806 596 |
|
Other financial assets4 |
425 342 |
565 445 |
580 657 |
602 636 |
609 707 |
|
|
6 660 625 |
7 600 149 |
7 807 196 |
7 821 853 |
7 864 374 |
|
|
|
|
|
|
|
|
Non‑financial assets |
|
|
|
|
|
|
Assets held for sale |
572 |
1 071 |
1 071 |
1 071 |
1 071 |
|
Property, plant and equipment |
137 128 |
163 067 |
168 967 |
173 617 |
173 813 |
|
Infrastructure5 |
51 580 |
63 878 |
83 691 |
108 691 |
137 691 |
|
Other assets6 |
221 169 |
274 653 |
242 988 |
214 669 |
162 737 |
|
|
410 449 |
502 669 |
496 717 |
498 048 |
475 312 |
|
|
|
|
|
|
|
|
Total assets |
7 071 074 |
8 102 818 |
8 303 913 |
8 319 901 |
8 339 686 |
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
Payables |
30 386 |
49 561 |
49 302 |
49 083 |
47 829 |
|
Interest bearing liabilities7 |
3 457 735 |
4 832 949 |
5 795 055 |
6 544 265 |
6 987 823 |
|
Superannuation8 |
9 893 800 |
8 399 153 |
8 371 065 |
8 314 698 |
8 237 951 |
|
Other liabilities9 |
505 975 |
591 616 |
621 469 |
549 263 |
588 367 |
|
Total liabilities |
13 887 896 |
13 873 279 |
14 836 891 |
15 457 309 |
15 861 970 |
|
|
|
|
|
|
|
|
Net assets (liabilities) |
(6 816 822) |
(5 770 461) |
(6 532 978) |
(7 137 408) |
(7 522 284) |
|
|
|
|
|
|
|
|
Equity |
|
|
|
|
|
|
Reserves |
10 592 |
22 187 |
22 187 |
22 187 |
22 187 |
|
Other reserves |
(1 098 509) |
(804 212) |
(868 038) |
(913 018) |
(1 011 046) |
|
Accumulated funds |
(5 728 905) |
(4 988 436) |
(5 687 127) |
(6 246 577) |
(6 533 425) |
|
Total equity |
(6 816 822) |
(5 770 461) |
(6 532 978) |
(7 137 408) |
(7 522 284) |
|
|
|
|
|
|
|
Notes:
1. The decrease in Cash and deposits over the Budget and Forward Estimates reflects a reclassification of $600 million to Investments for funds invested with the Tasmanian Public Finance Corporation. This decrease is partially offset by higher Specific Purpose Account cash balances.
2. The increase in Investments reflects the reclassification of $600 million from Cash and deposits for funds invested with the Tasmanian Public Finance Corporation.
3. The increase in Equity investments primarily reflects the estimated change in the value of net assets of government businesses between 1 July and 30 June each year.
4. The increase in Other financial assets in 2023 represents the estimated movement of deferred tax assets and liabilities held by government businesses.
5. The increase in Infrastructure reflects expenditure associated with the Digital Transformation Priority Expenditure Program.
6. The variation in Other assets primarily reflects the net value of leased assets net of annual depreciation.
7. The increase in Interest bearing liabilities primarily reflects the increase in borrowings to support the General Government Sector cash deficit.
8. The decrease in Superannuation primarily reflects the latest actuarial advice provided by the State’s Actuary. The main reason for the movement is due to a change in the discount rate from 1.5 per cent to 2.5 per cent. Further information is included in chapter 7 of The Budget Budget Paper No 1.
9. The variation in Other liabilities primarily reflects revised contract liability balances (AASB 15 Revenue from Contracts with Customers) based on the timing of cash flows within the Australian Government Funding Management Account.
|
|
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 |
943 758 |
956 815 |
981 894 |
905 559 |
940 345 |
|
Appropriation receipts ‑ capital |
20 033 |
12 868 |
19 813 |
25 000 |
29 000 |
|
Appropriation receipts ‑ other |
30 409 |
13 912 |
.... |
.... |
.... |
|
Grants |
4 115 304 |
4 530 817 |
4 815 302 |
4 751 042 |
4 830 937 |
|
Taxation |
1 317 939 |
1 471 071 |
1 565 407 |
1 636 020 |
1 709 307 |
|
Sales of goods and services |
162 385 |
185 593 |
180 713 |
189 216 |
198 794 |
|
GST receipts |
13 500 |
13 500 |
13 500 |
13 500 |
13 500 |
|
Interest received |
5 068 |
23 954 |
31 271 |
30 562 |
31 850 |
|
Dividends received1 |
451 686 |
353 304 |
279 159 |
285 982 |
321 852 |
|
Other cash receipts |
118 416 |
119 540 |
118 582 |
118 582 |
118 582 |
|
Total cash inflows |
7 178 498 |
7 681 374 |
8 005 641 |
7 955 463 |
8 194 167 |
|
|
|
|
|
|
|
|
Cash outflows |
|
|
|
|
|
|
Superannuation |
(294 042) |
(305 188) |
(308 960) |
(328 253) |
(339 473) |
|
Borrowing costs |
(38 345) |
(87 242) |
(138 786) |
(175 933) |
(208 210) |
|
GST payments |
(13 500) |
(13 500) |
(13 500) |
(13 500) |
(13 500) |
|
Grants and subsidies |
(547 493) |
(753 738) |
(850 700) |
(792 294) |
(673 494) |
|
Transfers to the Public Account |
(6 869 855) |
(7 302 067) |
(7 160 418) |
(7 104 217) |
(7 032 414) |
|
Supplies and consumables |
(289 906) |
(296 326) |
(197 833) |
(205 782) |
(213 812) |
|
Total cash outflows |
(8 053 141) |
(8 758 061) |
(8 670 197) |
(8 619 979) |
(8 480 903) |
|
|
|
|
|
|
|
|
Net cash from (used by) operating activities |
(874 643) |
(1 076 687) |
(664 556) |
(664 516) |
(286 736) |
|
|
|
|
|
|
|
|
Cash flows from investing activities |
|
|
|
|
|
|
Payments for acquisition of non‑financial assets2 |
(62 641) |
(58 174) |
(59 497) |
(63 902) |
(63 988) |
|
Proceeds from the disposal of non‑financial assets |
18 864 |
23 080 |
21 326 |
20 606 |
18 134 |
|
Equity injections and cash flows from restructuring3 |
(275 132) |
(336 361) |
(228 702) |
(117 369) |
(72 137) |
|
Net advances paid |
470 |
470 |
470 |
470 |
470 |
|
Net receipts/(payments) for investments4 |
21 245 |
41 044 |
.... |
.... |
.... |
|
Net cash from (used by) investing activities |
(297 194) |
(329 941) |
(266 403) |
(160 195) |
(117 521) |
|
|
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 financing activities |
|
|
|
|
|
|
Net borrowings |
868 467 |
1 429 487 |
958 388 |
745 470 |
466 068 |
|
Net cash from (used by) financing activities |
868 467 |
1 429 487 |
958 388 |
745 470 |
466 068 |
|
|
|
|
|
|
|
|
Net increase (decrease) in cash and cash equivalents held |
(303 370) |
22 859 |
27 429 |
(79 241) |
61 811 |
|
|
|
|
|
|
|
|
Cash and deposits at the beginning of the reporting period |
1 370 342 |
664 691 |
687 550 |
714 979 |
635 738 |
|
Cash and deposits at the end of the reporting period |
1 066 972 |
687 550 |
714 979 |
635 738 |
697 549 |
|
|
|
|
|
|
|
Notes:
1. Dividends received include dividends, rate equivalent income and income tax equivalent income. The Dividend, tax and rate equivalent income within Table 4.3 Statement of Comprehensive Income ‑ Administered includes accrued revenue relating to income tax equivalents which is not recognised within the Statement of Cash Flows ‑ Administered.
2. The decrease in Payments for acquisition of non-financial assets in 2022-23 primarily reflects the timing of cash flows associated with the Digital Transformation Priority Expenditure Program and the Government’s fleet management services.
3. The increase in Equity injections and cash flows from restructuring in 2022‑23 primarily reflects equity contributions provided through the General Government Sector. Further details on equity transfers can be found in chapter 6 of The Budget Budget Paper No 1.
4. The movement in Net receipts/(payments) for investments reflects the drawdown of the TT‑Line Vessel Replacement Fund.