3     Finance‑General

Agency Outline

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.

Output Information

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 3.1 provides an Output Group Expense Summary for Finance‑General.

Table 3.1:         Output Group Expense Summary
	2022‑23	2023‑24	2024‑25	2025‑26	2026‑27
			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	75 382	114 235	172 576	222 780	258 105
1.2 Interest on Sundry Deposits2	1 079	6 399	6 465	6 820	7 429
	76 461	120 634	179 041	229 600	265 534
Output Group 2 ‑ Employee Related Costs
2.1 Superannuation and Pensions	289 391	365 578	360 803	355 529	349 339
	289 391	365 578	360 803	355 529	349 339
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	22 267	17 282	12 924	11 699	6 815
	36 863	31 878	27 520	26 295	21 411
Output Group 4 ‑ Miscellaneous
4.2 Treasurer’s Reserve4	150 000	50 000	50 000	50 000	50 000
4.3 Miscellaneous5	947	12 383	35 041	1 024	1 030
4.4 Payment to Australian Tax Office: GST Administration6	14 308	10 506	10 485	10 525	10 525
4.5 Tasmanian Risk Management Fund7	110 206	134 700	143 760	151 319	162 562
4.6 Fleet Management Services	16 603	17 059	17 044	17 291	17 655
4.7 Property Management Services8	68 458	82 273	74 863	71 939	69 957
4.8 Infrastructure Investment Project Planning	2 000	2 000	2 000	2 000	2 000
4.9 Ex‑Gratia Assistance9	300	100	100	100	100
4.11 Budget Efficiency Dividend10	....	....	(50 000)	(100 000)	(150 000)
	362 822	309 021	283 293	204 198	163 829
Output Group 89 ‑ Public Building Maintenance Program
89.1 Public Building Maintenance Program11	3 083	....	....	....	....
	3 083	....	....	....	....
Output Group 90 ‑ COVID‑19 Response and Recovery
90.2 Local Government $200 million Interest Free Loans12	1 623	1 170	286	....	....
90.8 Tasmanian HomeBuilder Grant13	5 720	2 880	....	....	....
	7 343	4 050	286	....	....

Table 3.1:         Output Group Expense Summary (continued)
	2022‑23	2023‑24	2024‑25	2025‑26	2026‑27
			Forward	Forward	Forward
	Budget	Budget	Estimate	Estimate	Estimate
	$'000	$'000	$'000	$'000	$'000
Grants and Subsidies14	706 331	790 791	705 041	528 151	481 361
TOTAL	1 482 294	1 621 952	1 555 984	1 343 773	1 281 474

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 reflects forecast higher interest earnings rates and higher account balances.

3. The decrease in Government Businesses primarily reflects the transfer of the Common Ticketing System project from Metro Tasmania Pty Ltd to the Department of State Growth and the timing of funding to Tasmanian Irrigation for Tranche 3 projects.

4. The Treasurer’s Reserve is to meet unexpected costs which could not be reasonably foreseen at the time of developing the 2023‑24 Budget.

5. The increase in Miscellaneous in 2023‑24 and 2024‑25 primarily reflects the Energy Bill Relief Fund.

6. The decrease in Payment to the Australian Taxation Office: GST Administration from 2023‑24 reflects the expiry of the 2019‑2023 GST Compliance Program. The cost associated with the 2023‑2027 GST Compliance Program proposed by the Australian Government will be included once endorsed by states and territories.

7. The increase in Tasmanian Risk Management Fund from 2023-24 primarily reflects changes in potential claim estimates provided by the State’s Actuary.

8. The increase in Property Management Services in 2023‑24 primarily reflects the recognition of additional lease contracts under AASB 16 Leases for major office accommodation. The decrease from 2024‑25 primarily reflects the 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 Budget Efficiency Dividend has initially been presented within Finance‑General pending allocation to individual agencies. The Government will work with agencies to identify the most appropriate approach for the implementation of this budget adjustment in individual agencies prior to commencement in 2024‑25.

11. The decrease in the Public Building Maintenance Program reflects the completion of work funded under this program as part of the Government’s COVID‑19 Response and Recovery measures.

12. The decrease in Local Government $200 million Interest Free Loans reflects revised cash flows based on approved council loan schedules and the conclusion of the program in 2024‑25.

13. The decrease in Tasmanian HomeBuilder Grant in 2024-25 reflects the expected finalisation of payments under the program.

14. For further information on the variation in Grants and Subsidies see Table 3.5 Administered Expenses.

Output Group 1:    Debt Servicing and Management

1.1 Debt Servicing

This Output provides for the interest costs incurred in managing the State Government’s debt portfolio.

1.2 Interest on Sundry Deposits

This Output provides for the payment of interest on balances held in certain Specific Purpose Accounts and Agency Trust Accounts.

Output Group 2:    Employee Related Costs

2.1 Superannuation and Pensions

This Output meets the Government’s share of superannuation and pension costs, actuarial, legal and other costs associated with the administration and management 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.

Output Group 3:    Government Businesses

3.1 Sustainable Timber Tasmania

This Output provides funding to Sustainable Timber Tasmania to maintain its firefighting capacity and assist with fighting wildfires.

3.2 State Fire Commission

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 26 of this Budget Paper.

3.4 Government Businesses

Contribution to the Tasmanian Racing Industry (Point of Consumption Tax)

The Point of Consumption Tax commenced on 1 January 2020. This contribution represents the share of additional revenue generated from the POC tax that is 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.

Intelligent Transport Systems Project

Funding is provided to support a range of system upgrades to be undertaken by Metro Tasmania Pty Ltd that will complement the Common Ticketing System and Network Optimisation projects being delivered by the Department of State Growth.

Electric Bus Trial

Funding is provided to Metro Tasmania Pty Ltd to undertake a Zero‑Emission (Battery Electric) Bus Trial, as part of the operational trials of zero emission buses and to meet the Government’s target of net zero emissions by 2030.

Tasmanian Irrigation Pty Ltd

Funding is provided to Tasmanian Irrigation Pty Ltd over the 2023‑24 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.

Port Arthur Historic Site Management Authority

Funding is provided to the Port Arthur Historic Site Management Authority to support its recovery from the COVID‑19 pandemic period.

Output Group 4:    Miscellaneous

4.2 Treasurer’s Reserve

This Output provides funding, in accordance with section 21 of the Financial Management Act 2016, to meet expenditure that could not, in the opinion of the Treasurer, reasonably be foreseen at the time of developing the 2023‑24 Budget and which is necessary for efficient financial administration.

4.3 Miscellaneous

This Output provides funding for miscellaneous payments including expenditure related to the Energy Bill Relief Fund and Government Business Structural Reviews.

4.4 Payment to Australian Tax Office: GST Administration

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.

4.5 Tasmanian Risk Management Fund

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.

4.6 Fleet Management Services

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 from agencies.

Estimated expenses for this Output include motor vehicle registration expenses, estimated depreciation on motor vehicles and the refund of insurance excesses to agencies.

4.7 Property Management Services

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 their 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.

4.8 Infrastructure Investment Project Planning

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.

4.9 Ex‑Gratia Assistance

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.

4.11 Budget Efficiency Dividend

A Budget Efficiency Dividend is included across the Forward Estimates period to ensure the sustainability of the Budget position and enable flexibility to meet potential future budget shocks. The Budget Efficiency Dividend is initially presented within Finance‑General and the Government will work with agencies to identify the most appropriate approach to achieving this Budget adjustment. The Budget Efficiency Dividend required in 2024‑25 is approximately 0.6 per cent of total expenditure with an incremental 0.6 per cent in 2025‑26 and 2026‑27. The Budget Efficiency Dividend over the Forward Estimates totals $300 million. This compares with the Budget Efficiency Dividend of $450 million from the 2019‑20 Budget, which was discontinued due to the COVID‑19 response.

Capital Investment Program

Table 3.2 provides financial information for the Department’s Capital Investment Program. More information on the Capital Investment Program is provided in chapter 6 of The Budget Budget Paper No 1.

Table 3.2:         Capital Investment Program
	Estimated	2023‑24	2024‑25	2025‑26	2026‑27
	Total		Forward	Forward	Forward
	Cost	Budget	Estimate	Estimate	Estimate
	$'000	$'000	$'000	$'000	$'000
New Projects
Treasurer
Expansion of the House of Assembly to 35 Members ‑ Office Accommodation	3 390	1 670	1 720	....	....
Existing Projects
Treasurer
Digital Transformation Priority Expenditure Program	Ongoing	25 000	25 000	25 000	25 000
Total CIP Allocations		26 670	26 720	25 000	25 000

Detailed Budget Statements

Table 3.3:         Statement of Comprehensive Income ‑ Administered
	2022‑23	2023‑24	2024‑25	2025‑26	2026‑27
			Forward	Forward	Forward
	Budget	Budget	Estimate	Estimate	Estimate
	$'000	$'000	$'000	$'000	$'000
Administered revenue and other income
Appropriation revenue ‑ operating1	956 815	1 024 703	999 742	881 012	864 511
Appropriation revenue ‑ capital1	12 868	26 670	26 720	25 000	25 000
Other revenue from government1	13 912	3 309	....	....	....
Grants2	4 513 450	5 011 284	5 005 183	4 912 930	5 019 754
Taxation2	1 472 630	1 524 526	1 594 839	1 673 864	1 752 557
Sales of goods and services	185 593	218 026	222 700	227 672	235 709
Interest3	24 371	67 783	61 258	66 590	65 084
Dividend, tax and rate equivalent income4	336 242	302 771	361 813	384 810	319 464
Other revenue	119 540	118 582	118 582	118 582	118 582
Total administered revenue	7 635 421	8 297 654	8 390 837	8 290 460	8 400 661
Net gain/(loss) on non‑financial assets	8 839	17 868	9 451	10 767	9 115
Other gains/(losses) from other economic flows5	26 675	(34 355)	(50 589)	(37 150)	(30 565)
Total administered income	7 670 935	8 281 167	8 349 699	8 264 077	8 379 211
Administered expenses
Employee benefits6	289 191	365 378	360 603	355 329	349 139
Depreciation and amortisation	55 837	61 556	57 454	55 077	53 702
Supplies and consumables7	296 326	215 590	221 938	229 854	241 553
Grants and subsidies8	753 738	837 918	766 695	554 329	502 650
Borrowing costs9	87 202	141 510	199 294	249 184	284 430
Transfers to the Public Account	7 302 067	7 691 169	7 632 352	7 385 479	7 443 958
Other expenses10	....	....	(50 000)	(100 000)	(150 000)
Total administered expenses	8 784 361	9 313 121	9 188 336	8 729 252	8 725 432
Administered net result	(1 113 426)	(1 031 954)	(838 637)	(465 175)	(346 221)
Administered other comprehensive income
Net gain/(loss) on revaluation of equity investment11	(51 139)	280 535	274 511	307 443	550 186
Other movements taken directly to equity	(1)	(1)	(1)	(1)	(1)
Total administered other comprehensive income	(51 140)	280 534	274 510	307 442	550 185
Administered comprehensive result	(1 164 566)	(751 420)	(564 127)	(157 733)	203 964

Notes:

1. Explanations for significant variances and further information can be found in Table 3.4 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 in 2023‑24 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 primarily reflects the latest actuarial assessments of superannuation expenditure.

7. The decrease in Supplies and consumables in 2023‑24 primarily reflects a reduction in the Treasurer’s Reserve.

8. Explanations for the variation in Grants and subsidies can be found in Table 3.5 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. This item reflects the impact of the Budget Efficiency Dividend.

11. 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.

15.

Table 3.4:         Revenue from Appropriation by Output

	2022‑23	2023‑24	2024‑25	2025‑26	2026‑27
			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	75 428	112 626	172 554	223 858	258 190
1.2 Interest on Sundry Deposits2	5 299	24 935	27 839	31 302	35 030
	80 727	137 561	200 393	255 160	293 220
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	225 806	166 948	118 113	39 423	19 212
	240 402	181 544	132 709	54 019	33 808
Output Group 4 ‑ Miscellaneous
4.2 Treasurer’s Reserve	150 000	50 000	50 000	50 000	50 000
4.3 Miscellaneous4	947	12 383	35 041	1 024	1 030
4.4 Payment to Australian Tax Office: GST Administration5	14 308	10 506	10 485	10 525	10 525
4.7 Property Management Services	12 600	7 019	7 208	7 133	7 105
4.8 Infrastructure Investment Project Planning	2 000	2 000	2 000	2 000	2 000
4.9 Ex‑Gratia Assistance6	300	100	100	100	100
4.11 Budget Efficiency Dividend	....	....	(50 000)	(100 000)	(150 000)
	180 155	82 008	54 834	(29 218)	(79 240)
Output Group 89 ‑ Public Building Maintenance Program
89.1 Public Building Maintenance Program7	356	....	....	....	....
	356	....	....	....	....
Output Group 90 ‑ COVID‑19 Response and Recovery
90.2 Local Government $200 million Interest Free Loans8	1 623	1 170	286	....	....
90.8 Tasmanian HomeBuilder Grant9	5 720	2 880	....	....	....
	7 343	4 050	286	....	....

Table 3.4:         Revenue from Appropriation by Output (continued)

	2022‑23	2023‑24	2024‑25	2025‑26	2026‑27
			Forward	Forward	Forward
	Budget	Budget	Estimate	Estimate	Estimate
	$'000	$'000	$'000	$'000	$'000
Grants and Subsidies	123 245	246 755	221 479	198 198	200 784
Capital Investment Program	12 868	26 670	26 720	25 000	25 000
Finance‑General
Total Operating Services	632 578	652 268	610 051	478 509	448 922
Total Capital Services	12 868	26 670	26 720	25 000	25 000
	645 446	678 938	636 771	503 509	473 922
Reserved by Law
Payments to Municipalities under the Local Government (Rates and Charges Remissions) Act 1991	19 199	21 022	21 825	22 615	23 434
Payments under the Public Sector Superannuation Reform (Parliamentary Superannuation) Regulations 2016	1 000	1 013	1 018	1 020	1 013
Superannuation Benefits Payable under the Governor of Tasmania Act 1982	111	114	114	114	113
Superannuation Benefits Payable under the Judges’ Contributory Pensions Act 1968	1 903	1 995	2 002	2 003	1 987
Superannuation Benefits Payable under the Public Sector Superannuation Reform Act 2016	301 753	348 007	364 446	376 465	388 759
Superannuation Benefits Payable under the Solicitor‑General Act 1983	271	284	286	286	283
	324 237	372 435	389 691	402 503	415 589
Appropriation Rollover	13 912	3 309	....	....	....
Total Revenue from Appropriation	983 595	1 054 682	1 026 462	906 012	889 511
Administered Revenue from Appropriation	983 595	1 054 682	1 026 462	906 012	889 511
	983 595	1 054 682	1 026 462	906 012	889 511

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 decrease 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 increase in Miscellaneous in 2023‑24 and 2024‑25 primarily reflects the Energy Bill Relief Fund.

5. The decrease in Payment to the Australian Taxation Office: GST Administration in 2023‑24 primarily reflects a reduction in GST compliance expenditure.

6. The decrease in Ex‑Gratia Assistance reflects lower expected payments to be made under section 55 of the Financial Management Act.

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

8. The decrease in Local Government $200 million Interest Free Loans reflects revised cash flows based on approved council loan schedules and the conclusion of the program in 2024‑25.

9. The decrease in Tasmanian HomeBuilder Grant in 2023‑24 reflects the expected finalisation of payments under the program.

10.

Table 3.5:         Administered Expenses

	2022‑23	2023‑24	2024‑25	2025‑26	2026‑27
			Forward	Forward	Forward
	Budget	Budget	Estimate	Estimate	Estimate
	$'000	$'000	$'000	$'000	$'000
Grants and Subsidies
Energy Retailer Concession1	44 852	52 000	53 300	54 700	56 100
First Home Builder Assistance2	25 530	21 880	10 820	4 820	5 080
Local Government: Grants3	36 518	138 057	136 024	124 355	127 905
Management of Australian Government Funding4	562 999	522 986	461 709	307 310	257 115
Natural Disaster Relief Scheme5	562	17 640	4 517	532	532
Other Grants and Subsidies	34	34	34	34	34
Payments under Local Government (Rates and Charges Remissions) Act 1991	19 199	21 022	21 825	22 615	23 434
Payroll Tax Assistance6	6 875	7 464	6 481	2 971	....
TT‑Line Pensioner Concession Subsidy	342	342	342	342	342
Water and Sewerage Concessions and Subsidies	9 420	9 366	9 989	10 472	10 819
	706 331	790 791	705 041	528 151	481 361
Transfers to the Public Account	7 302 067	7 691 169	7 632 352	7 385 479	7 443 958
Other Administered Expenses	775 963	831 161	850 943	815 622	800 113
Total Administered Expenses	8 784 361	9 313 121	9 188 336	8 729 252	8 725 432

Notes:

1. The increase in Energy Retailer Concession from 2023‑24 primarily reflects an increase in the number of concession customers and an allowance for potential price increases in 2023‑24 and across the Forward Estimates.

2. The decrease in First Home Builder Assistance from 2024‑25 reflects the Government’s decision to extend the $30 000 First Home Owner Grant for a further 12 months to 30 June 2024.

3. The increase in Local Government: Grants in 2023‑24 reflects an advanced payment which was received in 2021‑22 in relation to the 2022‑23 entitlement, funding of $20 million in 2023‑24 and across the Forward Estimates to TasWater for Wastewater System Improvements and funding for City Deal Launceston for Urban Water Infrastructure.

4. The decrease in Management of Australian Government Funding reflects the timing of grant payments associated with National Partnership agreements.

5. The increase in Natural Disaster Relief Scheme in 2023‑24 reflects costs associated with the October 2022 severe weather event, May and June 2022 storm events and August 2022 flooding event.

6. The variation in Payroll Tax Assistance primarily reflects an increase in the take up of the Payroll Tax Rebate for eligible apprentices, trainees and youth employees in 2022‑23, and expenditure gradually declining reflecting that the rebate is time‑limited for eligible employees.

Energy Retailer Concession

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 increase in the Electricity Retailer Concession in 2023‑24 reflects an increase in the number of concession customers and an allowance for any increase in the regulated price of electricity. The increase over the Forward Estimates reflects the historical average concession growth rate.

First Home Builder Assistance

The Government has extended the $30 000 First Home Owner Grant for a further 12 months to 30 June 2024. The $30 000 FHOG now applies to all eligible contracts entered into from 1 April 2021 until 30 June 2024 (inclusive).

Local Government: Grants

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.

Natural Disaster Relief Scheme

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.

Other Grants and Subsidies

Funding has been included for Other Grants and Subsidies in the 2023‑24 Budget and Forward Estimates for minor expenses relating to the Rosetta and Berriedale landslip accounts.

Payments under Local Government (Rates and Charges Remissions) Act 1991

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.

Payroll Tax Assistance

Payroll Tax Rebate (Trainees, Apprentices and Youth)

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.

Qantas Airways Limited

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.

TT‑Line Pensioner Concession Subsidy

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.

Water and Sewerage Concessions and Subsidies

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 to compensate for it passing the benefit onto eligible concession card holders as lower service charges. The concession is indexed annually to ensure that the increases are in line with inflation.

Table 3.6:         Statement of Financial Position as at 30 June ‑ Administered

	2023	2024	2025	2026	2027
			Forward	Forward	Forward
	Budget	Budget	Estimate	Estimate	Estimate
	$'000	$'000	$'000	$'000	$'000
Assets
Financial assets
Cash and deposits1	687 550	864 480	832 081	877 801	852 264
Investments2	601 880	601 410	600 940	600 470	600 000
Receivables	150 052	128 658	128 658	128 658	128 658
Equity investments3	5 595 222	11 200 760	11 710 260	12 117 227	12 732 710
Other financial assets4	565 445	600 725	566 737	540 316	515 731
	7 600 149	13 396 033	13 838 676	14 264 472	14 829 363
Non‑financial assets
Assets held for sale	1 071	1 421	1 421	1 421	1 421
Property, plant and equipment5	163 067	172 118	181 805	193 513	201 797
Infrastructure6	63 878	74 422	99 422	124 422	149 422
Other assets7	274 653	584 094	521 029	459 784	401 269
	502 669	832 055	803 677	779 140	753 909
Total assets	8 102 818	14 228 088	14 642 353	15 043 612	15 583 272
Liabilities
Payables	49 561	55 784	55 591	54 340	54 082
Interest bearing liabilities8	4 832 949	5 538 304	6 574 623	7 134 874	7 564 922
Superannuation9	8 399 153	7 771 583	7 764 170	7 739 461	7 696 295
Other liabilities10	591 616	743 860	693 539	718 240	667 312
Total liabilities	13 873 279	14 109 531	15 087 923	15 646 915	15 982 611
Net assets (liabilities)	(5 770 461)	118 557	(445 570)	(603 303)	(399 339)
Equity
Reserves	22 187	22 187	22 187	22 187	22 187
Other reserves	(804 212)	1 121 498	1 396 009	1 703 452	2 253 638
Accumulated funds	(4 988 436)	(1 025 128)	(1 863 766)	(2 328 942)	(2 675 164)
Total equity	(5 770 461)	118 557	(445 570)	(603 303)	(399 339)

Notes:

1. The variation in Cash and deposits over the Budget and Forward Estimates reflects Specific Purpose Account cash balances.

2. Investments reflect funds invested with the Tasmanian Public Finance Corporation.

3. The increase in Equity investments reflects the inclusion of Homes Tasmania in 2023‑24 and the estimated change in the value of net assets of PNFC and PFC entities between 1 July and 30 June each year.

4. The increase in Other financial assets in 2024 represents the estimated movement of deferred tax assets and liabilities held by PNFC and PFC entities.

5. The increase in Property, plant and equipment primarily reflects capital expenditure associated with office accommodation fit‑out works within the Salamanca Building to accommodate the additional ten members for the expansion of the House of Assembly to 35 Members and the whole‑of‑government light vehicle fleet.

6. The increase in Infrastructure reflects expenditure associated with the Digital Transformation Priority Expenditure Program.

7. The variation in Other assets primarily reflects the net value of leased assets net of annual depreciation.

8. The increase in Interest bearing liabilities primarily reflects the increase in borrowings to support the General Government Sector cash deficit.

9. The decrease in Superannuation primarily reflects the latest actuarial advice provided by the State’s Actuary, reflecting a change in the discount rate from 2.5 per cent to 4.0 per cent. Further information is included in chapter 7 of The Budget Budget Paper No 1.

10. 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.

11.

Table 3.7:         Statement of Cash Flows ‑ Administered

	2022‑23	2023‑24	2024‑25	2025‑26	2026‑27
			Forward	Forward	Forward
	Budget	Budget	Estimate	Estimate	Estimate
	$'000	$'000	$'000	$'000	$'000
Cash flows from operating activities
Cash inflows
Appropriation receipts ‑ operating	956 815	1 024 703	999 742	881 012	864 511
Appropriation receipts ‑ capital	12 868	26 670	26 720	25 000	25 000
Appropriation receipts ‑ other	13 912	3 309	....	....	....
Grants	4 530 817	5 058 105	4 944 890	4 927 659	4 958 854
Taxation	1 471 071	1 522 846	1 592 603	1 672 468	1 750 592
Sales of goods and services	185 593	218 026	222 700	227 672	235 709
GST receipts	13 500	13 500	13 500	13 500	13 500
Interest received	23 954	63 822	60 329	62 156	63 734
Dividends received1	353 304	314 707	355 037	386 571	323 459
Other cash receipts	119 540	118 582	118 582	118 582	118 582
Total cash inflows	7 681 374	8 364 270	8 334 103	8 314 620	8 353 941
Cash outflows
Superannuation	(305 188)	(351 563)	(368 016)	(380 038)	(392 305)
Borrowing costs	(87 242)	(139 886)	(199 235)	(250 183)	(284 436)
GST payments	(13 500)	(13 500)	(13 500)	(13 500)	(13 500)
Grants and subsidies	(753 738)	(837 918)	(766 695)	(554 329)	(502 650)
Transfers to the Public Account	(7 302 067)	(7 691 169)	(7 632 352)	(7 385 479)	(7 443 958)
Supplies and consumables	(296 326)	(212 357)	(218 878)	(226 794)	(238 493)
Other cash payments	....	....	50 000	100 000	150 000
Total cash outflows	(8 758 061)	(9 246 393)	(9 148 676)	(8 710 323)	(8 725 342)
Net cash from (used by) operating activities	(1 076 687)	(882 123)	(814 573)	(395 703)	(371 401)
Cash flows from investing activities
Payments for acquisition of non‑financial assets	(58 174)	(81 654)	(68 637)	(70 905)	(67 846)
Proceeds from the disposal of non‑financial assets	23 080	32 109	23 692	25 008	23 356
Equity injections and cash flows from restructuring2	(336 361)	(256 691)	(234 989)	(99 524)	(65 297)
Net advances paid	470	470	470	470	470
Net receipts/(payments) for investments3	41 044	....	....	....	....
Net cash from (used by) investing activities	(329 941)	(305 766)	(279 464)	(144 951)	(109 317)

Table 3.7:         Statement of Cash Flows ‑ Administered (continued)

	2022‑23	2023‑24	2024‑25	2025‑26	2026‑27
			Forward	Forward	Forward
	Budget	Budget	Estimate	Estimate	Estimate
	$'000	$'000	$'000	$'000	$'000
Cash flows from financing activities
Net borrowings	1 429 487	1 211 147	1 061 638	586 374	455 181
Net cash from (used by) financing activities	1 429 487	1 211 147	1 061 638	586 374	455 181
Net increase (decrease) in cash and cash equivalents held	22 859	23 258	(32 399)	45 720	(25 537)
Cash and deposits at the beginning of the reporting period	664 691	841 222	864 480	832 081	877 801
Cash and deposits at the end of the reporting period	687 550	864 480	832 081	877 801	852 264

Notes:

1. Dividends received includes dividends, rate equivalent income and income tax equivalent income. The Dividend, tax and rate equivalent income within Table 3.3 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 Equity injections and cash flows from restructuring in 2023‑24 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.

3. The decrease in Net receipts/(payments) for investments reflects the final drawdown of the TT‑Line Vessel Replacement Fund.