1     Introduction

Key Issues

·       The 2023‑24 Budget focuses on delivering Government commitments by: 

-      providing additional funding to strengthen critical services and address demand issues in essential service delivery;

-      implementing initiatives supporting the Government’s priorities for Tasmania; and

-      continuing strategic investment in infrastructure to support continued economic development and jobs, and increasing the productive capacity of the Tasmanian economy.

·       This Budget Paper provides detailed information on the goods and services (Outputs) provided by entities and the key deliverables that are planned for delivery in 2023‑24 and over the Forward Estimates (2024‑25 to 2026‑27). The information presented in this Budget Paper supports the whole‑of‑government information provided in The Budget Budget Paper No 1 and supports the 2023 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 2023‑24 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 development 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.

s

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 2023‑24 and over the Forward Estimates (2024‑25 to 2026‑27). This Budget Paper details the purposes of appropriation provided for in the 2023 Appropriation Bills.

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

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

·       Part 1 includes Government departments, such as the Department of Health 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;

·       Part 3 includes statutory authorities within the GGS, such as the State Fire Commission and the Inland Fisheries Service; and

·       Part 4 includes Homes Tasmania, a new Public Non-Financial Corporation Sector entity that sits outside the GGS. Homes Tasmania is included due the financial support it receives from the GGS in the delivery of its essential housing and homelessness support services.

This Budget Paper does not include information on government businesses. Information on these entities is available in each entitys annual report.

2023‑24 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 2022‑23 Budget.

The information presented in this Budget Paper reflects the Ministerial Portfolio and departmental structure current at the time of preparing the 2023‑24 Budget. An outline of this structure is provided at Appendix 1 of this chapter.

2023‑24 Australian Government Budget

Due to the brief period of time available between the release of the 2023‑24 Australian Government Budget and the release of the Tasmanian 2023‑24 State Budget, the impact of the Australian Government Budget has not been reflected in the numbers presented in this Budget Paper. Detailed information relating to the impact of the Australian Government Budget will be reflected in the Revised Estimates Report 2023‑24.

2023‑24 Budget Key Deliverables

The Key Deliverables Statement in each entity chapter of this Budget Paper reflects funding allocated to agencies in the 2023‑24 Budget, primarily to deliver new initiatives and projects, or to enhance Government services. The Statement may also include initiatives funded by entities from within existing resources.

Key Deliverables information reflects the total amount of funding allocated to deliver the initiatives 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 for initiatives identified, the total allocation of funding is the same.

Indexation of Agency Allocations

Indexation rates for wage and non‑wage costs have been updated as part of the 2023‑24 Budget.

Over the 2023‑24 Budget and Forward Estimates, indexation rates for Operating Services appropriations are as follows:

·       wage related costs ‑ 3.5 per cent for the first full year from the anniversary date of a new wage agreement, followed by 2.5 per cent per annum thereafter; and

·       non‑wage costs ‑ 2 per cent per annum, excluding medical and surgical supplies which is indexed at 3.5 per cent per annum.

In addition to the indexation for wage related costs outlined above, supplementary funding has been provided for the impact of Cost of Living Payments, Low Income Payment and one-off payments for the first full year from the anniversary date of a new wage agreement or when they are due to commence, together with the applicable base increase to salaries.

2023‑24 Budget Entity Restructures

This section provides an overview of entity restructures implemented since the 2022‑23 Budget, including the restructure and abolition of the former Department of Communities Tasmania. Further information is also provided in the relevant entity chapters within this Budget Paper.

Administrative Arrangements

The allocation of Agency Outputs to Ministerial Portfolios included in this Budget Paper reflects the structure of the Tasmanian Government under Administrative Arrangements Order (No. 4) 2022.

Where relevant, transfers of appropriations were made 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.

State Service Restructuring Orders

Agency Budget restructures were implemented during the 2022‑23 financial year in accordance with State Service Restructuring Orders. In total, six Orders were made during 2022 that related to the 2022‑23 financial year, with Order No. 1 2022 already reflected in the 2022‑23 Budget. Order No. 3 was rescinded by Order No. 4 and as a result, its impact is not reflected in the 2023‑24 Budget. Further information on the impact of the remaining Orders on the 2023‑24 Budget is outlined below.

Restructure of the former Department of Communities Tasmania

In February 2022, the Government announced that the Department of Communities Tasmania would be restructured and abolished. From 1 December 2022, DCT ceased to exist, and its functions moved to other departments within the General Government Sector or formed part of the new housing authority, Homes Tasmania. Homes Tasmania is a Public Non-Financial Corporation Sector entity and operates outside the GGS.

Restructuring Orders were progressively made during 2022 to facilitate the movement of functions, budget and staff from DCT to receiving departments within the GGS. The Restructuring Orders also provided for the restructure of Aboriginal Heritage Tasmania from the Department of Natural Resources and Environment Tasmania to the Department of Premier and Cabinet. These Orders were first reflected in the Revised Estimates Report 2022‑23. The impact of each Order is summarised below:

·       State Service (Restructuring) Order (No. 2) 2022 - amalgamated the Sport and Recreation (including the Silverdome and the Tasmanian Institute of Sport) parts of DCT, with the Department of State Growth, effective 1 July 2022;

·       State Service (Restructuring) Order (No. 4) 2022 - amalgamated the Policy and Programs and Wellbeing, Strategy and Engagement parts of DCT with DPAC, effective I August 2022;

·       State Service (Restructuring) Order (No. 5) 2022 ‑ amalgamated the Family Violence Counselling and Support Service parts of DCT with the Department of Health, effective 12 September 2022; and the Aboriginal Heritage Tasmania part of the DNRET with DPAC, effective 1 September 2022;

·       State Service (Restructuring) Order (No. 6) 2022 ‑ amalgamated the Children, Youth and Families, the Office of the Commissioner for Children and Young People, the Tasmanian Autism Diagnostic Service, the Inquiry Support Unit, and the Child Advocate parts of DCT with the Department for Education, Children and Young People; the Board of Exceptional Needs parts of DCT with the Department of Health; and the Tasmanian Community Fund and Community and Disability Services parts of DCT with DPAC, effective I October 2022; and

·       State Service (Restructuring) Order (No. 7) 2022 ‑ amalgamated the part of DCT relating to housing with Homes Tasmania; the parts of DCT known as Community Services Grants with DECYP; and the parts of DCT known as Grant Services Community, Sport and Recreation with DPAC, effective 1 December 2022.

Each Order included an effective date for the identified functions to be transferred between agencies. Orders that came into effect after the start of the 2022‑23 financial year required a part-year Budget transfer to the receiving agency to provide appropriation funding to the transferred functions for the remainder of 2022‑23. The part-year appropriations that were transferred are reflected in the receiving agencys 2022‑23 Budget column, where relevant, in this Budget Paper.

Table 1.1 shows the Output transfers that occurred from the former Department of Communities Tasmania to the receiving agency to implement the restructure.

Table 1.1:         Department of Communities Tasmania Restructure Summary

Department of Communities Tasmania

Receiving agency

 

 

1.1 Children Services

Department for Education, Children and Young People

4.1 Services for Children and Families

4.2 Services for Youth Justice

 

Department of Health

2.4 Community Health Services

 

Department of Premier and Cabinet

7.4 Child and Youth Wellbeing

2.1 Office of the Commissioner for Children and Young People

Department for Education, Children and Young People

5.1 Office of the Commissioner for Children and Young People

3.1 Housing Services

Department of Premier and Cabinet (Homes Tasmania)

Homes Tasmania

4.1 Community Services

Department of Premier and Cabinet

7.2 Community Services

4.2 Disability Services

Department for Education, Children and Young People

1.1 In School Education

 

Department of Premier and Cabinet

7.1 Disability Services

4.3 Community Development - Policy Advice and Ongoing Community Development

Department of Premier and Cabinet

7.3 Community Development - Policy Advice and Ongoing Community Development

4.4 Aboriginal Affairs

Department of Premier and Cabinet

7.8 Aboriginal Affairs

4.5 Womens Policy

Department of Premier and Cabinet

7.6 Womens Policy

4.6 Veterans Affairs

Department of Premier and Cabinet

7.7 Veterans Affairs

4.7 Sport and Recreation

Department for Education, Children and Young People

4.1 Services for Children and Families

 

Department of Premier and Cabinet

7.3 Community Development ‑ Policy Advice and
Ongoing Community Development

 

Department of State Growth

5.6 Sport and Recreation

5.1 Safe Homes, Families, Communities: Tasmania’s

    action plan for family and sexual violence

Department of Premier and Cabinet

7.5 Tasmania’s Third Family and Sexual Violence Action Plan: Survivors at the Centre 2022‑2027

90.1 Private Rental Incentive Scheme

Department of Premier and Cabinet (Homes Tasmania)

Homes Tasmania

 

Table 1.1:         Department of Communities Tasmania Restructure Summary (continued)

Department of Communities Tasmania

Receiving agency

 

 

90.2 Community Support Fund

Department of Premier and Cabinet

7.2 Community Services

90.4 Emergency Accommodation Support

Department of Premier and Cabinet

7.2 Community Services

90.6 Child Safety System

Department for Education, Children and Young People

4.1 Services for Children and Families

90.10 Statewide Safe Spaces

Department of Premier and Cabinet (Homes Tasmania)

Homes Tasmania

Tasmanian Community Fund

Department of Premier and Cabinet

 

Tasmanian Community Fund

Capital Investment Program

 

Community Housing Growth Program

 

Department of Premier and Cabinet (Homes Tasmania)

Homes Tasmania

Extended Social Housing Build

Homes Tasmania

Housing - New Projects

Homes Tasmania

New Housing Package

Homes Tasmania

Supported Accommodation Facilities

Homes Tasmania

Tasmanias Affordable Housing Action Plan 2

Homes Tasmania

Youth Housing Initiatives ‑ Modular Youth Housing and Dispersed Youth Foyer

Homes Tasmania

Youth Justice Facilities

Department for Education, Children and Young People

Youth Justice Facilities

 

 

Homes Tasmania Establishment

Homes Tasmania was established as a new statutory authority under the Homes Tasmania Act 2022 on 1 December 2022. The Act sets out the purpose, objectives and functions of the Authority and was enacted to support the delivery of improved housing services, including access to and supply of affordable housing.

Homes Tasmania has been classified as a PNFC entity and is outside of the GGS. As such, it does not receive a direct appropriation from the Public Account.

Under the Appropriation (Supplementary Appropriation for 202223) Act 2022, appropriation funding to support Homes Tasmania in 2022‑23 was allocated to Finance‑General to be paid as a grant to Homes Tasmania. From 2023‑24 onwards, appropriation funding is allocated to DPAC as the administering agency.

Given the ongoing financial support provided to Homes Tasmania that is funded from the Public Account and to maintain transparency and accountability on the delivery of essential housing and homelessness services, a new Part 4 has been created in this Budget Paper.


 

The delivery of housing-related capital projects is no longer included as part of the General Government Sector Infrastructure Investment program. The 2023-24 Budget includes funding to enable Homes Tasmania to undertake supported borrowings (with the Government meeting debt servicing costs) to meet its planned capital program expenditure.

Detailed Financial Statements and performance information for Homes Tasmania are provided in Part 4 of this Budget Paper. 

Other Agency Restructures

The 2023-24 Budget estimates also reflect the impact of the following restructures:

·       Effective 1 October 2022, Renewables, Climate and Future Industries Tasmania transferred from the Department of Treasury and Finance to the Department of State Growth in accordance with State Service (Restructuring) Order (No. 6) 2022.

·       The Department of Premier and Cabinet consolidated Outputs within Output Group 2 - Government Processes and Services to improve alignment with service delivery. This resulted in the amalgamation of Output 2.3 Tasmanian Government Courier within Output 2.1 Ministerial Management of Executive Government Processes from 1 July 2023. Estimates in the Department’s Budget chapter have been recast to provide comparability with the new structure.


 

Financial Statement Presentation Issues

Lease Treatment

As part of the 2023‑24 Budget development process, the estimates for leases have been reviewed to align with 2021‑22 audited financial statements and updated assumptions over the 2023‑24 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 2023‑24 Budget Papers as a result of the review of Model Departmental Financial Statements

Presentation of Rollovers

The 2023‑24 Budget reflects preliminary agency estimates of unexpended appropriations from 2022‑23. Prior to 30 June 2023, estimates will be updated, and approval will be sought from the Treasurer 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 the 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.

Opening Balances Treatment

Due to the timing of the 2023‑24 Budget, actual outcomes are not available for 2022‑23.

Consequently, the entity end of year Budget position and resulting opening balances for 2023‑24 are based on estimates and do not reflect the actual 30 June 2023 outcome. Estimates incorporate the entity’s 2021‑22 audited financial statements and assumptions made by the entity on forecast positions over the 2023‑24 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 2022‑23 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 2022‑23 Preliminary Outcome is materially different from the 2022‑23 Estimated Outcome, a Preliminary Outcomes Report will be required to be published by 15 August 2023, which will reflect Specific Purpose Account balances and Opening Balances.

Revised entity opening balances, including audited Specific Purpose Account balances, will be incorporated into the Revised Estimates Report 2023‑24. This Report will also reflect General Government Sector Opening Balances contained in the Treasurers Annual Financial Report 2022‑23.

27th Pay in 2026‑27

Salary payments to employees in the General Government Sector are made fortnightly. This means that in a typical year 26 pays occur during the year. Approximately once every 11 years, 27 fortnightly pay days will occur in a financial year, with the next one due to occur in 2026‑27. The Department of Health makes salary payments fortnightly on alternative weeks to the rest of the GGS and will therefore not make a 27th pay in 2026‑27.

Additional operating services appropriation allocations from the Public Account are reflected in 2026‑27 for this additional cost. On a cash basis, this is reflected as an increase in 2026‑27 in the level of appropriation to agencies and in Employee benefits in the Statement of Cash Flows. However, on an accrual basis there is no impact on the Statement of Comprehensive Income, as the additional cash payment is offset by a reduction in the liability for Employee benefits.

Other Budget Presentation Issues

Impact of COVID‑19 Pandemic on Budget Estimates

Recent Budgets have included specific appropriations to entities and an increased allocation to the Treasurers Reserve to meet costs that are directly related to COVID‑19 response and recovery measures.

Outputs for COVID‑19 related expenditure were established in the 2021‑22 Budget and in some instances are still included in agency statements where there are residual funding allocations.

Output Group 90 ‑ COVID‑19 Response and Recovery Measures

This Output was established for specific COVID‑19 expenditure measures announced by Government. Funding allocations to this Output have ceased with the Output expected to be removed in the Forward Estimates. Future COVID‑19 costs will be delivered through existing Outputs where relevant.

Output Group 89 ‑ Public Building Maintenance Program

This Output was established in 2020‑21 Budget to provide agencies with funding allocated under the Public Building Maintenance Program. The Program allocated $70 million to Finance‑General to be reimbursed to agencies for costs associated with approved projects. Given the funding is estimated to be fully expended by 30 June 2023 estimates for this Output are not included from 2023‑24.

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.

In the 2023‑24 Budget Papers, two years of actual information (2020‑21 and 2021‑22) and two years of targets (2022‑23 and 2023‑24) are published for each performance measure (unless otherwise noted).

Entities will next report on performance information in 2022‑23 Annual Reports, due to be available by 31 October 2023.

Superannuation Guarantee Charge

Entity estimates for superannuation over the 2023‑24 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 11.0 per cent in 2023‑24.

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 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

Premier and Cabinet

 

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

Premier and Cabinet / State Growth

 

Energy and Renewables

State Growth

 

Veterans Affairs

Premier and Cabinet

 

 

 

Hon Felix Ellis MP

Police, Fire and Emergency Management

Police, Fire and Emergency Management

 

Resources

Natural Resources and Environment Tasmania / State Growth

 

Skills, Training and Workforce Growth

State Growth

 

 

 

Hon Roger Jaensch MP

Education, Children and Youth

Education, Children and Young People

 

Environment and Climate Change

Natural Resources and Environment Tasmania / State Growth

 

Aboriginal Affairs

Premier and Cabinet

 

Parks

Natural Resources and Environment Tasmania / Premier and Cabinet

 

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

Minister

Ministerial Portfolio

Department

 

 

 

Hon Madeleine Ogilvie MP

Advanced Manufacturing and Defence Industries

State Growth

 

Science and Technology

Premier and Cabinet / State Growth

 

Small Business

State Growth

 

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

Premier and Cabinet

 

Women

Premier and Cabinet

 

Prevention of Family Violence

Premier and Cabinet

 

 

 

Hon Nic Street MP

Community Services and Development

Premier and Cabinet

 

Hospitality and Events

State Growth

 

Sport and Recreation

State Growth

 

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.


2.     

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 Roger Jaensch MP

Natural Resources and Environment Tasmania

State Fire Commission

Hon Felix Ellis MP

Police, Fire and Emergency Management

TasTAFE

Hon Felix Ellis MP

State Growth