Appendix B: 1997-98 Budget - Summary of Variations
Category/Agency
Budget* Revised
$m
$m
Variation
Comment on Major Variations
$m
CURRENT OUTLAYS
Interest Payments
Crown Transactions
1,418.1
1,388.4
(-) 29.7
140.8
105.8
(-) 35.0
1,558.9
1,494.2
(-) 64.7
Minor variations
1,462.6
1,467.9
5.3
Total, Superannuation
1,462.6
1,467.9
5.3
61.0
137.1
76.1
1.8
4.4
2.6
62.8
141.5
78.7
Other minor variations
Total, Interest Payments
Lower short-term interest rates.
Superannuation
Subsidies to Agencies - Redundancies
Department of Transport
Other minor variations
Total, Subsidies to Agencies Redundancies
Due to increased funding requirements for RSA redundancies ($11.8m) and SRA
redundancies ($64m) as a result of enhanced separation package and increased
number of voluntary separations in 1997-98.
Appendix B: 1997-98 Budget - Summary of Variations (cont)
Category/Agency
Budget*
Revised
Variation
Comment on Major Variations
$m
$m
655.5
688.4
32.9
Increased operational funding for the SRA for Enterprise Bargaining Agreement
requirements not funded in the Budget allocation. Equity funding of $6.5m to
RSA not provided in the Budget.
...
10.2
10.2
Reclassification of funding being paid to the Department of Housing.
Other minor variations
179.0
178.4
Total, Subsidies to Agencies - Other
834.5
877.0
Department of Education and Training
2.7
14.5
Department of Health
5.0
10.0
Crown Transactions
20.0
...
Other minor variations
11.1
21.0
9.9
Total, Departmental Payments Redundancies
38.8
45.5
6.7
$m
Subsidies to Agencies - Other
Department of Transport
Ageing and Disability Department
(-)
0.6
42.5
Departmental Payments Redundancies
11.8
Mainly redundancy payments for under programmed TAFE teachers.
5.0 Reclassification of salaries expense as redundancies expense.
(-)
20.0
Allocation distributed to agencies.
Appendix B: 1997-98 Budget - Summary of Variations (cont)
Category/Agency
Budget*
Revised
$m
$m
Variation
Comment on Major Variations
$m
Departmental Payments - Other
Premier’s Department
42.6
59.0
16.4
Mainly a consequence of the transfer of the Office of Information Technology from
the Department of Public Works and Services ($13.5m) as well as several strategic
projects undertaken during the year.
641.5
692.2
50.7
Due primarily to reclassification of funds from the SRA and STA Subsidy Grants to
the SRA and STA School Student Transport Scheme and Pensioner Concession
Grants.
5,585.0
5,696.1
111.1
274.5
304.3
29.8
Department of State and Regional
Development
69.1
76.3
7.2
Ministry for Forests and Marine
Administration
39.9
27.6
Attorney General’s Department
345.1
70.1
Department of Transport
Department of Health
Crown Transactions Entity
Legal Aid Commission
(-)
Salary increases ($72m), retrospective 1996-97 salary increases ($69.6m),
increased Commonwealth receipts ($16.2m), offset by reduced expenditure
associated with a shortfall in revenue ($24m), the repayment of a Treasury loan
($13m) and reclassification of salary expense as redundancies ($5m).
Additional payments to Racing Industry ($25m), TAB costs ($25m), offset by
savings on refunds ($20m).
Hunter Advantage Fund and increased assistance to industry.
12.3
Mainly due to Forestry Industry Restructure Package expenditure carried forward to
1998-99.
367.1
22.0
Crown Solicitor’s Office fees and continued funding for Legal Representation Office.
77.5
7.4
Includes additional funding from State ($2m) and Law Society ($2m) to make up for
funding shortfall following Commonwealth cuts and funding by Commonwealth of
Community Legal Centres ($3.461m).
Appendix B: 1997-98 Budget - Summary of Variations (cont)
Category/Agency
Budget*
Revised
$m
$m
Variation
Comment on Major Variations
$m
Departmental Payments - Other (cont)
Department of Fair Trading
66.9
78.5
11.6
Now includes payments of the Property Services Council.
1,025.6
1,053.6
28.0
Salary increases for non-commissioned officers.
Department of Land and Water
Conservation
285.3
337.0
51.7
Includes increased Murray Darling Basin Commission works ($11.5m), expenditure
associated with increased Commonwealth grants ($11.2m), water reform ($4.8m),
higher staff costs ($8.0m) and reclassification of capital works ($13.1m).
Department of Corrective Services
338.8
357.3
18.5
Includes cost of award increases ($5.5m), redundancies ($3m), reclassification of
capital expenditure as maintenance ($8.0m) and costs of medical escorts and
hospital security ($1.5m).
68.4
73.4
5.0
Increase in salary costs, mainly HREA award increases.
...
8.3
8.3
Initial funding for the planning and development of transport strategy for the Sydney
Olympic Games and the Royal Easter Show.
218.8
229.0
10.2
Award increases for firefighters.
5,057.8
4,985.6
(-)
72.2
Change in accounting treatment for end of year salary payments (-$90.4m) offset by
other expenditure increases ($11.9m).
284.1
273.8
(-)
10.3
Largely relates to reclassification of funding paid to the Department of Housing.
NSW Police Service
Department of Juvenile Justice
Olympic Roads and Transport Authority
NSW Fire Brigades
Department of Education and Training
Ageing and Disability Department
Appendix B: 1997-98 Budget - Summary of Variations (cont)
Category/Agency
Budget*
Revised
Variation
Comment on Major Variations
$m
$m
Department of Community Services
728.6
799.8
71.2
Commonwealth and other funding “rollovers” from 1996-97 ($24.3m); funds
transferred from the Department’s capital program ($5.6m); increased Budget
provision for non-realisation of savings and increasing service demands ($35.3m);
and additional funding to meet AROA Award costs and other approved Budget
variations ($6m net).
New South Wales Rural Fire Service
31.7
44.4
12.7
Increase in disaster welfare relief.
Department of Mineral Resources
26.4
34.8
8.4
Mainly due to reclassification of payments from capital to current ($4.6m) and
increased payments for Gretley Judicial Inquiry ($1m).
Roads and Traffic Authority
917.2
867.7
(-)
49.5
Reduced funding from fuel taxes following High Court Section 90 decision and
reduced Commonwealth funding for roads.
Department of Urban Affairs and Planning
164.5
76.7
(-)
87.8
Reclassification of community housing component of this expenditure as capital
outlays.
1,524.2
1,673.8
149.6
17,806.1
18,193.8
387.7
120.0
...
(-) 120.0
Expenditure from Treasurer’s Advance is shown in individual agency payments.
642.7
618.6
(-)
Shortfalls in patient fees and other hospital charges ($17.2m), revenue from the
Motor Accident Authority ($3.7m) and Ambulance transport ($4.3m).
$m
Departmental Payments - Other (cont)
Other minor variations
Total, Departmental Payments - Other
Treasurer’s Advance
Less User Charges
Department of Health
24.1
Appendix B: 1997-98 Budget - Summary of Variations (cont)
Category/Agency
Budget*
Revised
$m
$m
Variation
Comment on Major Variations
$m
User Charges (cont)
Legal Aid Commission
Department of Education and Training
6.5
37.4
30.9
Change of treatment – Commonwealth funding now reported as a user charge
instead of a Commonwealth grant.
137.1
150.3
13.2
Increase in Commonwealth Labour Market Programs and commercial revenues.
1.0
6.7
5.7
72.3
86.9
14.6
384.1
412.7
28.6
1,243.7
1,312.6
68.9
20,640.1
20,907.3
267.2
1,575.0
1,800.0
225.0
User Charges (cont)
Department of Urban Affairs and Planning
Department of Land and Water
Conservation
Other minor variations
Total, User Charges
TOTAL, CURRENT OUTLAYS
Funding for community housing.
Mainly increased contributions from Murray Darling Basin Commission.
CURRENT RECEIPTS
Taxes, Fees and Fines
Stamp Duty Contracts and Conveyances
Strong growth in property transactions exceeded expectations.
Appendix B: 1997-98 Budget - Summary of Variations (cont)
Category/Agency
Budget*
Revised
$m
$m
Loan Securities
142.0
162.0
Insurance
337.0
320.0
Share Transfers
245.0
Motor Vehicle Registration
Variation
Comment on Major Variations
$m
Taxes, Fees and Fines (cont)
20.0
Higher levels of lending linked with the greater than expected increase in property
market transactions.
17.0
Competition in the industrial special risks and fire categories has resulted in lower
premiums and revenues.
280.0
35.0
Increased trading in equities, the Telstra float and record high share values have
increased revenues.
401.0
423.0
22.0
Strong growth in vehicle purchases has boosted revenue.
Financial Institutions Duty
534.0
555.0
21.0
One-off $7m compliance payment boosted revenue and increased share activity..
Land Tax
786.0
840.0
54.0
Higher than expected valuations and revenue from prior year assessments have
been partially offset by less revenue from owner-occupiers.
Electricity Distribution levy
100.0
93.2
(-)
6.8
Sales to non-franchise customers lower than forecast.
48.0
13.0
(-)
35.0
SOCOG concessions and reduced tourism numbers.
Club Gaming Device Duty
560.0
520.0
(-)
40.0
Reversal of budget tax increase, partially offset by higher than expected receipts.
Hotel Gaming Device Duty
69.0
152.0
83.0
Popularity of poker machines in hotels exceeded expectations.
579.0
...
...
46.0
586.0
(125.0)
(-) 533.0
586.0
(-) 125.0
Accommodation levy
Petroleum Licence Fee
Petroleum Revenue replacement
Petroleum Subsidy payments
(-)
(Differences in the timing of receipts under the Commonwealth safety net compared
(with former business franchise fees.
Subsidies paid by NSW to ensure petrol prices do not rise as a result of higher
Commonwealth petrol excises.
Appendix B: 1997-98 Budget - Summary of Variations (cont)
Category/Agency
Budget*
Revised
$m
$m
Variation
Comment on Major Variations
$m
Taxes, Fees and Fines (cont)
Liquor Licence Fees
Liquor Revenue replacement
Liquor Subsidy payments
Tobacco Licence Fees
Tobacco Revenue Replacement
309.0
...
...
950.0
...
8.0
255.0
(150.0)
77.6
795.0
Off-Course Betting
340.7
286.5
RTA Taxes
930.2
940.8
Casino Control Authority
135.0
108.1
63.0
56.5
184.6
Payroll Tax
Other minor variations
Health Insurance Levy
Fire Brigades Levy
Total, Taxes, Fees and Fines
(-) 301.0
255.0
(-) 150.0
(-) 872.4
795.0
(Timing effects (as explained above).
(
$130 million in refunds to liquor licence holders for expired licences.
Timing effects (as explained above) and large stock movements by wholesalers
around the time of the High Court decision on which the excise surcharge was not
paid.
(-)
54.2
Corporatisation/privatisation of the TAB involves a new lower tax structure, which
reduced revenue.
10.6
Fee increases for motor vehicle transfers and registration to fund RTA.
(-)
26.9
Lower than estimated Casino patronage.
(-)
6.5
Expected uptake in health insurance as a result of Commonwealth incentives has
not materialised.
192.3
7.7
Increased levy due to increased employee related costs (award increases).
3,327.5
3,412.1
84.6
1,268.8
1,243.9
12,884.8
12,891.0
(-)
24.9
6.2
Higher than expected growth in wages and employment within firms liable to payroll
tax.
Appendix B: 1997-98 Budget - Summary of Variations (cont)
Category/Agency
Budget*
Revised
$m
$m
Generation Sector
205.4
299.2
energyAustralia
222.0
187.4
Freight Rail Corporation
16.7
Great Southern Energy
Landcom
Variation
Comment on Major Variations
$m
Income from Government Trading
Enterprises

Dividends -
Port Kembla Port Corporation
Sydney Water Corporation

93.8
Increased after-tax profits due to lower taxes from the adoption of tax-effect
accounting.
34.6
1996-97 performance below projections.
52.9
36.2
Increased dividend due to higher earnings and payout ratio to offset substantial
reduction in tax following the introduction of full tax-effect accounting.
14.2
26.7
12.5
Improved performance.
21.6
8.8
12.8
Dividends revised due to lower expected profits.
4.9
17.7
12.8
Return of cash not needed for operational and capital requirements.
33.0
147.0
114.0
32.0
10.1
(-)
128.1
11.2
(-) 116.9
...
12.1
12.1
(-)
(-)
Higher profits, higher payout ratio and payment of an interim dividend.
Tax Equivalents -
Freight Rail Corporation
Generation Sector
New South Wales Lotteries
21.9
Budget based on accounting profit while the revision is based on Tax Equivalent
Regime.
Lower 1997-98 profits and the adoption of tax-effective accounting.
Introduction of Tax Equivalent Regime.
Appendix B: 1997-98 Budget - Summary of Variations (cont)
Category/Agency
Budget*
Revised
$m
$m
Variation
Comment on Major Variations
$m
Income from Government Trading
Enterprises (cont)
Rail Access Corporation
Sydney Water Corporation
Other Income from Government Trading
Enterprises
Total, Income from Government
Trading Enterprises
...
26.6
26.6
Collection of a portion of the financial distribution due in 1996-97, now paid in
1997-98, has resulted in a tax liability
92.5
102.7
10.2
Higher than anticipated profits.
581.5
597.3
15.8
1,351.9
1,499.7
147.8
4,900.1
4,815.8
63.9
Commonwealth Grants
Financial Assistance Grants
84.3
Mainly downward revision in CPI.
77.1
13.2
Increased costs and usage primarily related to AIDS/HIV drugs.
1,560.1
1,599.4
39.3
Revised cost indexation and increased bonus pool and AIDS funding.
Medical Speciality Centres
10.3
4.8
(-)
5.5
Heart and heart/lung transplants ceased to be recognised as Medical Speciality
Centres from 1 November 1997.
Rural Adjustment Scheme
30.0
23.2
(-)
6.8
Commonwealth revised some components of the Scheme plus low drought
conditions in 1997.
Legal Aid
45.2
...
(-)
45.2
Highly Specialised Drugs
Hospital Funding Grant
(-)
Commonwealth funding now treated as a user charge.
Appendix B: 1997-98 Budget - Summary of Variations (cont)
Category/Agency
Budget*
Revised
$m
$m
Variation
Comment on Major Variations
$m
Commonwealth Grants (cont)
National Heritage Trust
13.2
24.5
11.3
Indigenous Advancement
10.1
15.9
5.8
...
19.7
19.7
Compensation for reduced Commonwealth demand for AMES programs to fund
redundancies.
412.4
439.4
27.0
Additional Commonwealth assistance for Specific Purpose Programs.
43.4
49.4
National Public Health
...
6.2
6.2
Broadbanding of certain public health payments.
Agriculture
...
6.0
6.0
Reclassification from Other Current Receipts.
584.1
602.0
17.9
7,672.8
7,683.4
10.6
...
7
7
29.7
35.6
5.9
AMES Restructuring
School Grants
Technical and Further Education
Other minor variations
Total, Commonwealth Grants
Higher Commonwealth receipts following signing of National Heritage Trust
agreement.
Additional Commonwealth assistance for Aboriginal advancement programs.
6.0 Increased Commonwealth funds for vocational education and training in schools.
Other Current Receipts
Rural Assistance Authority
Crown Leaseholds
Reclassification and separation of interest repayments from total loan repayments.
Increased revenue.
Appendix B: 1997-98 Budget - Summary of Variations (cont)
Category/Agency
Budget*
Revised
$m
$m
Variation
Comment on Major Variations
$m
Other Current Receipts (cont)
Consolidated Fund Entity
26.8
12.1
Environment Protection Authority
43.9
50.8
6.9
Department of Mineral Resources
186.6
197.6
11.0
Mainly increased royalties ($15.6m) partially offset by tender fee revenues deferred
to 1998-99.
Crown Transactions Entity
149.2
115.5
(-)
33.7
Lower interest earnings.
Department of Fair Trading
19.3
8.8
(-)
10.5
Reclassification of revenue derived from interest contributions from financial
institutions.
6.7
1.7
(-)
5.0
Mainly reclassification of grants funding.
26.2
21.0
(-)
5.2
Reclassification to Commonwealth Grants.
0.3
5.9
5.6
Reimbursement from Commonwealth for conservation resource assessments.
Other minor variations
352.7
362.7
10.0
Total, Other Current Receipts
841.4
818.7
TOTAL, CURRENT RECEIPTS
22,750.9
22,892.9
142.0
2,110.7
1,985.5
(-) 125.2
Home Care Service
Department of Agriculture
Department of Urban Affairs and Planning
CURRENT FINANCIAL RESULT
(-)
(-)
14.7
22.7
Change of accounting policy.
Increased contributions from the Environmental Trusts and the waste levy.
Appendix B: 1997-98 Budget - Summary of Variations (cont)
Category/Agency
Budget*
Revised
Variation
Comment on Major Variations
$m
$m
441.7
453.2
Department of Corrective Services
29.2
23.5
(-)
5.7
Reclassification of maintenance expenditure to current outlays.
Department of Juvenile Justice
23.0
17.6
(-)
5.4
Delays in construction of Juvenile Justice Centres.
Department of Land and Water
Conservation
27.8
14.7
(-)
13.1
Reclassification of capital works.
Olympic Co-ordination Authority
628.1
601.5
(-)
26.6
Mainly reclassification of debt retirement on behalf of the Sydney Cricket Ground
and Sports Ground Trust to a capital grant.
Department of Education and Training
222.5
235.9
13.4
Land acquisitions for schools ($4m) and additional expenditure on the
Conservatorium of Music project ($5.1m).
Coal Compensation Board
40.8
55.8
15.0
Increased coal compensation payments.
Roads and Traffic Authority
951.8
878.3
73.5
Reduced fuel taxes following High Court’s Section 90 decision and reduced
Commonwealth funding for roads.
1.6
91.7
90.1
Reclassification of community housing current expenditure to capital outlays.
274.3
282.3
8.0
2,640.8
2,654.5
13.7
$m
CAPITAL OUTLAYS
Gross Fixed Capital Payments
Department of Health
Department of Urban Affairs and Planning
Other minor variations
Total, Gross Fixed Capital Payments
11.5
(-)
Increased repairs and maintenance works of a capital nature.
Appendix B: 1997-98 Budget - Summary of Variations (cont)
Category/Agency
Budget*
Revised
$m
$m
Variation
Comment on Major Variations
$m
Capital Grants to PTEs and PFEs
Payments for Water and Sewerage
30.6
5.5
(-)
25.1
Projects delayed.
Department of Transport
446.7
388.6
(-)
58.1
Due to netting off SRA’s capital grant with its sale proceeds ($53.6m) and savings in
SRA’s capital program.
Department of Urban Affairs and Planning
266.2
252.0
(-)
14.2
Reduction in funding for Department of Housing due to Commonwealth cutbacks
and revision of the overall housing program.
...
19.3
19.3
Reclassification of debt retirement on behalf of the Sydney Cricket Ground and
Sports Ground Trust to a capital grant.
Department of State and Regional
Development
18.1
11.6
(-)
6.5
Department of Health
29.0
15.0
(-)
14.0
Reclassification of certain expenditures funded by Third Schedule hospitals.
Department of Gaming and Racing
14.4
59.3
44.9
TAB payment ($50m) to the racing industry.
Department of Urban Affairs and Planning
31.0
16.5
14.5
Reduction in Commonwealth funding for housing.
Other minor variations
296.4
307.2
Total, Capital Grants
1,132.4
1,075.0
Olympic Co-ordination Authority
Capital Grants to non State
Organisations
(-)
10.8
(-)
57.4
Delays in development of Moore Park/Showground.
Appendix B: 1997-98 Budget - Summary of Variations (cont)
Category/Agency
Advances made
Budget*
Revised
$m
$m
Variation
Comment on Major Variations
$m
12.6
7.8
422.1
141.5
(-) 280.6
Department of Fair Trading
0.1
6.2
6.1
Sale of Department’s St Leonard's property.
Department of Corrective Services
2.8
9.8
7.0
Sale of residential premises surplus to departmental requirements.
Department of Health
51.0
58.0
7.0
Increased sales, primarily due to sale of Camperdown site.
Crown Transactions
75.5
91.8
16.3
Increased asset sales.
Roads and Traffic Authority
18.1
37.5
19.4
Sale of Lane Cove depot site and additional plant sales.
Other minor variations
54.4
38.6
201.9
241.9
40.0
3,161.8
3,353.9
192.1
Less Advances Repaid to the Budget
Sector
(-)
4.8
Mainly reduced Public Trading Enterprises surplus asset sales.
Less Asset Sales
Total, Asset Sales
TOTAL, CAPITAL OUTLAYS
(-)
15.8
Appendix B: 1997-98 Budget - Summary of Variations (cont)
Category/Agency
Budget*
Revised
$m
$m
Variation
Comment on Major Variations
$m
CAPITAL RECEIPTS
Commonwealth Grants
Consolidated Fund Entity
...
5.0
Department of Urban Affairs and Planning
331.8
310.5
(-)
21.3
Reduction in Commonwealth funding for housing.
Roads and Traffic Authority
381.4
330.5
(-)
50.9
Funds provided by the Commonwealth were less than the amount estimated by the
State.
Other minor variations
140.3
137.7
(-)
2.6
Total, Commonwealth Grants
853.5
783.7
(-)
69.8
Other Capital Receipts
224.6
225.4
TOTAL, CAPITAL RECEIPTS
1,078.1
1,009.1
CAPITAL FINANCIAL RESULT
2,083.7
2,344.8
261.1
27.0
(359.2)
(-) 386.2
TOTAL FINANCIAL RESULT
*
5.0
Commonwealth contribution to National Debt Sinking Fund.
0.8
(-)
69.0
Some figures in the Budget column have been changed from those shown in the 1997-98 Budget Papers due to their reclassification to other aggregates under GFS principles. These
reclassifications have not affected the overall Budget result.