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 fitout 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.