3
FINANCE-GENERAL
AGENCY OUTLINE
The Finance-General Division is administered by the Department of Treasury and Finance. Expenditure
through Finance-General generally reflects whole-of-government activities.
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 Special Deposits and Trust Fund to meet future liabilities of the
Government, including a provision within the Tasmanian Risk Management Fund 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; and

Output Group 4 - Miscellaneous.
Table 3.1 provides an Output Group Expense Summary for Finance-General.
Finance-General
37
Table 3.1:
Output Group Expense Summary
2014-15)
2015-16)
Budget)
2016-17)
Forward)
Estimate)
2017-18)
Forward)
Estimate)
2018-19)
Forward)
Estimate)
Budget)
$'000)
$'000)
$'000)
$'000)
$'000)
86)
30)
30)
65)
18)
1.2 Interest on Sundry Deposits
2 421)
1 695)
2 779)
4 021)
2 707)
1.3 Debt Management
8 710)
8 390)
8 062)
7 727)
7 384)
11 217)
10 115)
10 871)
11 813)
10 109)
394 677)
390 046)
392 095)
392 824)
392 958)
394 677)
390 046)
392 095)
392 824)
392 958)
3.1 Forestry Tasmania
6 000)
6 000)
6 000)
6 000)
6 000)
3.2 State Fire Commission
2 836)
2 836)
2 836)
2 836)
2 836)
3.4 Government Businesses
1 583)
1 824)
1 814)
1 504)
1 493)
10 419)
10 660)
10 650)
10 340)
10 329)
10 000)
10 000)
10 000)
10 000)
10 000)
7 413)
23 272)
7 427)
17 427)
17 427)
15 019)
14 854)
11 804)
11 745)
11 696)
4.5 Tasmanian Risk Management Fund
4.6 Fleet Management Services2
61 389)
60 141)
59 066)
61 632)
64 354)
17 086)
14 972)
15 107)
15 313)
15 520)
4.7 Property Management Services3
33 462)
22 308)
26 297)
28 184)
28 466)
3 308)
2 000)
2 000)
2 000)
2 000)
147 677)
147 547)
131 701)
146 301)
149 463)
480 377)
488 671)
463 962)
225 300)
278 865)
38 055)
32 739)
12 016)
1 236)
1 278)
1 082 422) 1 079 778) 1 021 295)
787 814)
843 002)
Treasurer
Output Group 1 - Debt Servicing and Management
1.1 Debt Servicing
Output Group 2 - Employee Related Costs
2.1 Superannuation and Pensions
Output Group 3 - Government Businesses
Output Group 4 - Miscellaneous
4.2 Treasurer's Reserve
4.3 Miscellaneous1
4.4 Payment to Australian Tax Office: GST
Administration
4.8 Infrastructure Investment Project Planning4
Grants and Subsidies
Special Capital Investment Funds5
TOTAL
Notes:
1. The increase in Miscellaneous in 2015-16 reflects an increased provision for duties related ex gratia payments for
corporate reconstructions. The increase from 2017-18 reflects the revised cash flows for the Mobile Radio Network
upgrade.
2. The decrease in Fleet Management Services in 2015-16 reflects revised depreciation rates and a reduction in the
estimated size and value of the Government fleet.
3. The estimated expenditure for Property Management Services has been reviewed having regard to actual experience
in 2013-14 and 2014-15, and the estimated rental cashflows associated with the parliament square Project have been
revised downwards for 2015-16. In addition, following completion of the sale and transfer of the land in December 2014,
estimated leasehold improvements for parliament square of $9.1 million will be capitalised in 2015-16.
38
Finance-General
4. The decrease in Infrastructure Investment Project Planning in 2015-16 reflects the utilisation in 2014-15 of funding
carried forward under section 8A(2) of the Public Account Act 1986.
5. The decrease in Special Capital Investment Funds (SCIF) reflects the winding down of these funds. Further details
are provided in the SCIF section of this chapter.
Output Group 1: Debt Servicing and Management
1.1 Debt Servicing
This Output provides for the interest cost on borrowings.
1.2 Interest on Sundry Deposits
This Output provides for the payment of interest on balances held in certain accounts in the
Special Deposits and Trust Fund.
1.3 Debt Management
This Output reflects transactions associated with the repayment of Australian Government debt relating to
housing activities.
The expense of $8.4 million in 2015-16 ($8.7 million in 2014-15) represents interest payments to the
Australian Government on debt incurred under various Commonwealth-State Housing Agreements.
Principal repayments by Housing Tasmania of $7.5 million in 2015-16 ($7.3 million in 2014-15) are capital
transactions and are therefore not included in the expenses of Output 1.3, or in the expenses reported in
the Statement of Comprehensive Income, but are reflected within Interest bearing liabilities in the
Statement of Financial Position and included under Cash flows from investing activities in the Statement of
Cash Flows.
Output Group 2: Employee Related Costs
2.1 Superannuation and Pensions
This Output meets the Government's share of pension and superannuation costs.
In 2015-16, superannuation and pension expenses are estimated to total $390 million, an anticipated
decrease of $4.7 million in comparison with the budgeted cost in 2014-15 of $394.7 million. The 2015-16
estimate includes service costs of $104.4 million ($112.3 million in 2014-15) and nominal interest of
$285.6 million ($282.4 million in 2014-15). The estimated value of the expense is based on the most recent
actuarial assessment of the superannuation liability.
The estimated superannuation liability as at 30 June 2016 is $5 467.5 million (excluding the estimated
Housing Tasmania pre-July 1994 superannuation liability of $11.7 million as at 30 June 2016, the estimated
Tasmanian Ambulance Services Superannuation Scheme liability of negative $4.8 million as at 30 June 2016
and the estimated State Fire Commission superannuation liability of negative $3.9 million as at
30 June 2016). This is an increase of $34.1 million from the 2014-15 estimate of the liability as at
30 June 2015 of $5 433.4 million. The estimated value reflects the most recent actuarial assessment of the
liability.
Finance-General
39
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 Forestry Tasmania
The 2015-16 Budget includes funding of $4 million in 2015-16 ($4 million in 2014-15) and subsequent years
for Forestry Tasmania to deliver non-commercial activities as identified in its Ministerial Charter.
In addition, a Budget provision of $2 million has been made in 2015-16 and subsequent years
($2 million in 2014-15) for Forestry Tasmania to maintain its fire fighting capacity and assist with fighting
wild fires.
3.2 State Fire Commission
A provision of $2.8 million has been made for the State Fire Commission in 2015-16 and subsequent years
($2.8 million in 2014-15). Of this amount, a provision of $790 000 has been made for the
Bushfire Mitigation Program and $240 000 has been appropriated as a contingent provision for funding
excess fire fighting costs. The remaining $1.8 million represents the State Government's annual funding
contribution to the Commission in accordance with section 101 of the Fire Service Act 1979.
3.4 Government Businesses
This Output provides for expenses arising from the Government's ownership interests in Government
businesses.
Tasracing Pty Ltd
An amount of $1.5 million has been provided in 2015-16 ($1.3 million in 2014-15) in accordance with the
Government's agreement to reimburse Tasracing Pty Ltd for the costs (including principal where
necessary) associated with Tasracing's borrowings with Tascorp, where Tasracing cannot meet those costs.
Tasmanian Irrigation Pty Ltd - Transition Readiness
A key role for Tasmanian Irrigation Pty Ltd going forward involves maximising the extra value that the
irrigation schemes are capable of delivering and transitioning to a sustainable business model that
provides an effective service to its customers and community stakeholders. To assist Tasmanian Irrigation
transition into a value-adding and sustainable business, the Government is providing $300 000 in 2015-16
and 2016-17.
Output Group 4: Miscellaneous
4.2 Treasurer's Reserve
An amount of $10 million has been provided in the Treasurer's Reserve in 2015-16 ($10 million in 2014-15)
to meet expenditure that could not reasonably be foreseen at the time of developing the 2015-16 Budget
and which is essential for efficient financial management.
40
Finance-General
4.3 Miscellaneous
Items of expenditure under this Output relate to various miscellaneous payments, including the
Mobile Radio Network, assistance for voluntary local government amalgamations, support for nationally
driven reforms and a provision for duty related ex gratia payments where there are corporate
reconstruction transactions that do not result in a change of ownership.
Mobile Radio Network
An amount of $2 million is provided in 2015-16 for the funding of the whole-of-government Mobile Radio
Network upgrade administered by the Department of Police and Emergency Management. As a
consequence of delays in the implementation of this Project, estimated expenditure will decrease by
$18 million in 2015-16 and $10 million in 2016-17.
Voluntary Local Government Amalgamations
An amount of $400 000 is provided in 2015-16 to assist local councils with investigations into voluntary
amalgamations.
Support for Nationally Driven Reforms
Funding of $250 000 has been provided in 2015-16 ($250 000 in 2014-15) to support Tasmania's
participation in nationally driven reforms, primarily the two Australian Government White Paper processes
(Reform of the Federation and Reform of Australia's Taxation System) and will provide the flexibility to
resource reform projects as necessary. The Departments of Treasury and Finance and Premier and Cabinet
will be extensively involved in preparing and managing the Tasmanian Government's responses.
4.4 Payment to Australian Taxation Office: GST Administration
Under the Intergovernmental Agreement (IGA), the states and territories meet the costs of the Australian
Taxation Office in administering the goods and services tax. The states and territories share the GST
administration costs on a per capita basis. Tasmania's contribution to collection and compliance costs for
2015-16 is estimated at $14.9 million ($15 million in 2014-15).
4.5 Tasmanian Risk Management Fund
The estimated expenses of $60.1 million in 2015-16 ($61.4 million in 2014-15) represent anticipated
administration and claims costs. 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 Special Deposits and Trust Fund. Revenue in the
Government Car Fleet Account is derived from the sale of vehicles and receipts from the Government's
Fleet Manager of lease, registration and insurance payments by agencies, net of the fleet management
fee.
Estimated expenses for this Output in 2015-16 of $15 million ($17.1 million in 2014-15) include motor
vehicle registration expenses of $1.1 million ($1.2 million in 2014-15) and estimated depreciation on motor
vehicles of $13.9 million ($15.8 million in 2014-15).
Finance-General
41
The Government is committed to reducing the cost of running its passenger and light commercial motor
vehicle fleet. Over the Budget and Forward Estimates period, the Government is aiming to reduce vehicle
operating costs by $1.5 million per annum. Fleet cost savings continue to be achieved through the
implementation and monitoring of the following strategies:

reducing individual agency fleets through identification of underutilised and/or surplus vehicles;

applying a greater focus on whole-of-life costs; and

improving utilisation of vehicles through the introduction of fleet booking/pooling systems and GPS
tracking units.
In line with the Government's commitment to reducing costs, fleet numbers have continued to decline.
Government fleet cost saving strategies being implemented by agencies include a further reduction in the
size of the government fleet to 2 389 vehicles as at 31 March 2015, compared to 2 501 vehicles as at
31 March 2014 and a continuation of the downward trend in total monthly operating costs of the fleet.
4.7 Property Management Services
It is estimated that expenditure for Property Management Services will amount to $22.3 million in 2015-16
($33.5 million in 2014-15). The estimated expenditure for Property Management Services has been
reviewed having regard to actual experience in 2013-14 and 2014-15, and the estimated rental cashflows
associated with the parliament square Project have been revised downwards for 2015-16. In addition,
following completion of the sale and transfer of the land in December 2014, estimated leasehold
improvements for parliament square of $9.1 million ($3 million in 2014-15) will be capitalised in 2015-16.
The Department of Treasury and Finance has commenced the implementation of centralised management
and coordination of major office accommodation leases for Government within the Hobart CBD. This
strategic approach to major leases will lead to more efficient and effective management of the
Government's leased office accommodation. Treasury has commenced a review of major Hobart CBD
office leases that are subject to renewal in the remainder of 2015 and is working with agencies to ensure
lease negotiations optimise whole-of-government outcomes.
4.8 Infrastructure Investment Project Planning
The Infrastructure Investment Project Planning Output provides funding of $2 million in 2015-16 and
subsequent years for the early planning stages of major infrastructure projects.
42
Finance-General
SPECIAL CAPITAL INVESTMENT FUNDS
Within Finance-General, funds are held for investment in economic and social infrastructure. This section
provides a description of the Funds, the balance of each Fund and the projects to be funded in 2015-16
and over the Forward Estimates period. Further detail on capital expenditure from the Special Capital
Investment Funds is provided in chapter 6 of The Budget Budget Paper No 1.
Hospitals Capital Fund
The Hospitals Capital Fund was established in 2007-08 to provide capital funding for hospitals across the
State. In 2015-16, a total amount of $17.6 million has been allocated from the HCF for Mersey Hospital
Upgrades ($1.4 million) and the redevelopment of the Royal Hobart Hospital ($16.2 million).
In total, the HCF will have provided $100 million to address the Royal Hobart Hospital's ageing buildings
and infrastructure, and to improve and expand key services such as intensive care. It is expected that the
Fund will be fully expended in 2015-16.
A summary of the projects to be funded from the Hospitals Capital Fund is provided in Table 3.2.
Table 3.2:
Hospitals Capital Fund
Estimated)
2015-16)
Total)
2016-17
2017-18
2018-19
Forward
Forward
Forward
Cost)
Budget)
Estimate
Estimate
Estimate
$'000)
$'000)
$'000
$'000
$'000
Balance Brought Forward
17 597)
....
....
....
TOTAL SOURCE OF FUNDS
17 597)
....
....
....
1 900)
1 400)
....
....
....
100 000)
16 197)
....
....
....
TOTAL OUTFLOWS
)
17 597)
....
....
....
Closing Balance
)
....)
....
....
....
OUTFLOWS
Department of Health and Human Services
Minister for Health
Mersey Hospital Upgrades
Royal Hobart Hospital
Finance-General
43
Housing Fund
The Housing Fund was established in 2007-08, with an allocation of $60 million for the purpose of
increasing the supply of public housing. In 2015-16, it is anticipated that $1.6 million will be expended from
the Housing Fund on public housing projects.
Details of projects to be funded from the Housing Fund in 2015-16 are provided in chapter 4 of this Budget
Paper. It is expected that the Fund will be fully expended in 2018-19.
Table 3.3:
Housing Fund
Estimated)
2015-16)
Total)
2016-17
2017-18
2018-19
Forward
Forward
Forward
Cost)
Budget)
Estimate
Estimate
Estimate
$'000)
$'000)
$'000)
$'000
$'000
Balance Brought Forward
5 225)
3 671)
2 514
1 278
TOTAL SOURCE OF FUNDS
5 225)
3 671)
2 514
1 278
60 000)
1 554)
1 157)
1 236
1 278
TOTAL OUTFLOWS
)
1 554)
1 157)
1 236
1 278
Closing Balance
)
3 671)
2 514)
1 278
....
OUTFLOWS
Department of Health and Human Services
Minister for Human Services
Housing Fund
Infrastructure Tasmania Fund
The Infrastructure Tasmania Fund (ITF) was established in 2007-08, with proceeds of $312.9 million from
the divestment of government businesses, to fund major capital projects. During 2007-08, $80 million was
transferred from the ITF to the Water Infrastructure Fund administered by the Department of Primary
Industries, Parks, Water and Environment and $25 million was transferred to the former Urban Renewal
and Heritage Fund.
A summary of the projects to be funded from the ITF is provided in Table 3.4. It is expected that the Fund
will be fully expended in 2016-17.
44
Finance-General
Table 3.4:
Infrastructure Tasmania Fund
Estimated)
2015-16)
2016-17
Forward
Forward
Forward
Cost)
Budget)
Estimate
Estimate
Estimate
$'000)
$'000)
$'000
$'000
$'000
Balance Brought Forward
23 802)
10 859
....
....
TOTAL SOURCE OF FUNDS
23 802)
10 859
....
....
67 410)
12 943)
10 859
....
....
TOTAL OUTFLOWS
)
12 943)
10 859
....
....
Closing Balance
)
10 859)
....
....
....
Total)
2017-18
2018-19
OUTFLOWS
Department of Health and Human Services
Minister for Health
Health Infrastructure
Infrastructure Tasmania Fund Projects
In 2015-16, Health Infrastructure expenditure of $12.9 million for infrastructure upgrades will include:

Flinders Island Multi Purpose Centre Upgrade ($138 000);

Glenorchy - Tier Three Community Health Services Facility ($10.7 million);

Kingston - Tier Three Community Health Services Facility ($2 million); and

King Island Hospital and Health Centre Upgrade ($112 000).
Finance-General
45
Royal Hobart Hospital Redevelopment Fund
A Royal Hobart Hospital Redevelopment Fund was established in 2004-05 with a $35 million allocation
provided for the purposes of developing and enhancing the facilities at the Royal Hobart Hospital. Funding
of $645 000 has been allocated from this Fund in 2015-16. It is anticipated the Royal Hobart Hospital
Redevelopment Fund will be fully expended in 2015-16. Further information about the sources of funding
for the Royal Hobart Hospital Redevelopment project is provided in chapter 4 of this Budget Paper.
Table 3.5:
Royal Hobart Hospital Redevelopment Fund
Estimated)
2015-16)
Total)
2016-17
2017-18
2018-19
Forward
Forward
Forward
Cost)
Budget)
Estimate
Estimate
Estimate
$'000)
$'000)
$'000)
$'000)
$'000
Balance Brought Forward
645)
....)
....)
....
TOTAL SOURCE OF FUNDS
645)
....)
....)
....
35 000)
645)
....)
....)
....
TOTAL OUTFLOWS
)
645)
....)
....)
....
Closing Balance
)
....)
....)
....)
....
OUTFLOWS
Department of Health and Human Services
Minister for Health
RHH Redevelopment Fund
46
Finance-General
DETAILED BUDGET STATEMENTS
Table 3.6:
Statement of Comprehensive Income - Administered
Revenue and other income from transactions
Appropriation revenue - recurrent1
Other revenue from government1
Grants2
Taxation3
2014-15)
2015-16)
Budget)
2016-17)
Forward)
Estimate)
2017-18)
Forward)
Estimate)
2018-19)
Forward)
Estimate)
Budget)
$'000)
$'000)
$'000)
$'000)
$'000)
494 470)
527 016)
525 354)
519 666)
536 296)
2 808)
....)
....)
....)
....)
2 588 102) 3 017 224) 3 083 093) 3 100 128) 3 268 136)
887 341)
927 172)
938 875)
952 799)
970 638)
Sales of goods and services4
97 162)
89 993)
89 921)
92 472)
95 268)
Interest
18 631)
17 934)
18 545)
22 294)
21 739)
Dividend, tax and rate equivalent income5
342 939)
213 402)
218 703)
255 385)
241 814)
Other revenue
105 378)
107 583)
107 226)
106 833)
106 430)
Total revenue and other income from transactions
4 536 831) 4 900 324) 4 981 717) 5 049 577) 5 240 321)
Expenses from transactions
Employee benefits
394 677)
Depreciation and amortisation
Supplies and consumables6
16 385)
14 343)
16 271)
17 758)
17 970)
125 702)
110 864)
108 940)
112 057)
115 011)
Grants and subsidies
534 203)
554 215)
492 918)
253 162)
306 754)
11 455)
10 310)
11 071)
12 013)
10 309)
Borrowing costs
390 046)
392 095)
392 824)
392 958)
Transfers to the Consolidated Fund
3 737 418) 3 969 497) 4 055 184) 4 283 507) 4 246 730)
Total expenses from transactions
4 819 840) 5 049 275) 5 076 479) 5 071 321) 5 089 732)
Net result from transactions (net operating
balance)
(283 009)
(148 951)
(94 762)
(21 744)
150 589)
Other economic flows included in net result
Net gain/(loss) on non-financial assets
(51)
....)
....)
(1)
....)
(347 765)
58 945)
25 768)
33 344)
73 316)
Other gains/(losses) from other economic flows8
(41 323)
(29 282)
(1 884)
6 443)
(467)
Total other economic flows included in net result
(389 139)
29 663)
23 884)
39 786)
72 849)
Net result
(672 148)
(119 288)
(70 878)
18 042)
223 438)
Movement in investments in GBEs and SOCs7
Finance-General
47
Table 3.6:
Statement of Comprehensive Income - Administered
(continued)
2014-15)
2015-16)
Budget)
2016-17)
Forward)
Estimate)
2017-18)
Forward)
Estimate)
2018-19)
Forward)
Estimate)
Budget)
$'000)
$'000)
$'000)
$'000)
$'000)
(2)
(2)
(2)
(2)
(2)
(2)
(2)
(2)
(2)
(2)
(672 150)
(119 290)
(70 880)
18 040)
223 436)
Other economic flows - other non-owner changes
in equity
Other movements taken directly to equity
Total other economic flows - other non-owner
changes in equity
Comprehensive result
Notes:
1. Explanations for significant variances can be found in Table 3.7 Revenue from Appropriation by Output.
2. Grants represents funding from the Australian Government in the form of GST receipts, National Partnership Payments
and Specific Purpose Payments. Further information on Australian Government Funding can be found in chapter 5 of
The Budget Budget Paper No 1.
3. Further information regarding Taxation Revenue can be found in chapter 5 of The Budget Budget Paper No 1.
4. The decrease in Sales of goods and services primarily reflects revised rental cash flows for government buildings
based on actual experience for 2013-14 and 2014-15.
5. The decrease in Dividend, tax and rate equivalent income in 2015-16 is primarily due to a decrease in dividends and
income tax equivalents from Hydro Tasmania, Motor Accidents Insurance Board and Tasmanian Networks Pty Ltd,
partially offset by an increase in dividends and income tax equivalents from Aurora Energy Pty Ltd. The movements
reflect the outcomes of the capital structure review of the State-owned electricity businesses and the lower wholesale
electricity prices reflecting the removal of carbon pricing and softening of demand in the National Electricity Market.
The decrease for the Motor Accidents Insurance Board reflects the Board’s decision to remit a special dividend in
2014-15.
6. The decrease in Supplies and consumables primarily reflects the revised rental cashflows for the parliament square
Project based on actual experience for 2013-14 and 2014-15. In addition, following completion of the sale and transfer
of the land in December 2014, estimated leasehold improvements will be capitalised in 2015-16.
7. Movement in investment in GBEs and SOCs represents the estimated movement in the value of net assets of
government businesses, excluding any equity contributions, between 1 July and 30 June each year.
8. Other gains/(losses) from other economic flows represents the estimated movement of deferred tax assets and
liabilities held by government businesses.
48
Finance-General
Table 3.7:
Revenue from Appropriation by Output
2014-15)
2015-16)
Budget)
2016-17)
Forward)
Estimate)
2017-18)
Forward)
Estimate)
2018-19)
Forward)
Estimate)
Budget)
$'000)
$'000)
$'000)
$'000)
$'000)
64)
34)
30)
30)
66)
7 166)
6 361)
9 009)
12 376)
9 351)
7 230)
6 395)
9 039)
12 406)
9 417)
242)
241)
241)
241)
241)
6 500)
6 707)
6 707)
6 707)
6 707)
6 742)
6 948)
6 948)
6 948)
6 948)
3.1 Forestry Tasmania
6 000)
6 000)
6 000)
6 000)
6 000)
3.2 State Fire Commission
2 836)
2 836)
2 836)
2 836)
2 836)
3.4 Government Businesses1
8 583)
17 824)
16 814)
9 004)
8 993)
17 419)
26 660)
25 650)
17 840)
17 829)
7 413)
23 272)
7 427)
17 427)
17 427)
15 019)
14 854)
11 804)
11 745)
11 696)
12 398)
16 164)
35 565)
9 875)
10 157)
2 000)
2 000)
2 000)
2 000)
2 000)
36 830)
56 290)
56 796)
41 047)
41 280)
158 862)
147 003)
129 999)
130 925)
133 935)
227 083)
243 296)
228 432)
209 166)
209 409)
227 083)
243 296)
228 432)
209 166)
209 409)
Treasurer
Output Group 1 - Debt Servicing and Management
1.1 Debt Servicing
1.2 Interest on Sundry Deposits
Output Group 2 - Employee Related Costs
2.1 Superannuation and Pensions
2.3 Provision for 27th Pay
Output Group 3 - Government Businesses
Output Group 4 - Miscellaneous
4.3 Miscellaneous
4.4 Payment to Australian Tax Office: GST
Administration
4.7 Property Management Services2
4.8 Infrastructure Investment Project Planning
Grants and Subsidies3
Finance-General
Recurrent Services
Finance-General
49
Table 3.7:
Revenue from Appropriation by Output (continued)
2014-15)
2015-16)
Budget)
2016-17)
Forward)
Estimate)
2017-18)
Forward)
Estimate)
2018-19)
Forward)
Estimate)
Budget)
$'000)
$'000)
$'000)
$'000)
$'000)
10 000)
10 000)
10 000)
10 000)
10 000)
16 101)
16 488)
17 120)
17 776)
18 453)
1 423)
1 276)
1 194)
1 433)
1 433)
138)
126)
129)
131)
134)
2 345)
2 136)
2 187)
2 233)
2 275)
237 104)
253 443)
266 035)
278 664)
294 324)
276)
251)
257)
263)
268)
267 387)
283 720)
296 922)
310 500)
326 887)
2 808)
....)
....)
....)
....)
Total Revenue from Appropriation
497 278)
527 016)
525 354)
519 666)
536 296)
Administered Revenue from Appropriation
497 278)
527 016)
525 354)
519 666)
536 296)
497 278)
527 016)
525 354)
519 666)
536 296)
Reserved by Law
Appropriation to the Treasurer's Reserve (Public
Account Act 1986)
Payments to Municipalities under the Local
Government (Rates and Charges Remissions) Act
1991
Payments under the Retirement Benefits
(Parliamentary Superannuation) Regulations 2012
Superannuation Benefits Payable under the
Governor of Tasmania Act 1982
Superannuation Benefits Payable under the Judges'
Contributory Pensions Act 1968
Superannuation Benefits Payable under the
Retirements Benefits Act 1993
Superannuation Benefits Payable under the
Solicitor-General Act 1983
Appropriation Carried Forward
Notes:
1. The increase in the Government Businesses Output primarily reflects the Government's commitment to provide
$30 million of equity injections to Tasmanian Irrigation Pty Ltd over four years to 2018-19 to expand Tasmania's
irrigation infrastructure network. In addition, the Government will continue with the planned provision of $17 million of
equity injections to the Tasmanian Ports Corporation Pty Ltd over the three years to 2016-17 for essential remedial
works on port infrastructure.
2. The changes in the Property Management Services Output reflect revised rental cash flows based on actual
experience for 2013-14 and 2014-15, together with the funding of leasehold improvements which are being capitalised
from 2015-16, following the completion of the sale and transfer of the parliament square land in December 2014.
3. Explanations for significant variances can be found in Table 3.8 Administered Expenses.
50
Finance-General
Table 3.8:
Administered Expenses
2014-15]
)
Budget)
$'000)
2015-16]
)
Budget)
$'000)
2016-17]
Forward)
Estimate)
$'000)
2017-18]
Forward)
Estimate)
$'000)
2018-19]
Forward)
Estimate)
$'000)
Grants and Subsidies
Australian Government Contribution for Extension of
475)
475)
475)
475)
475)
Energy Retailer Concession1
First Home Builder Boost2
Pensioner Concessions
42 101)
37 196)
37 471)
37 748)
38 028)
17 900)
11 300)
3 230)
3 120)
3 000)
Local Government Grants
72 125)
71 666)
71 135)
73 660)
76 270)
283 241)
313 582)
316 843)
76 599)
131 277)
2 638)
1 138)
532)
532)
532)
50)
....)
....)
....)
....)
16 101)
16 488)
17 120)
17 776)
18 453)
4 083)
4 300)
1 000)
1 000)
1 000)
Tasmanian Forestry Agreement5
27 723)
18 398)
6 800)
4 800)
....)
Water and Sewerage Concessions and Subsidies
13 940)
14 128)
9 356)
9 590)
9 830)
480 377)
488 671)
463 962)
225 300)
278 865)
Management of Australian Government Funding3
Natural Disaster Relief Scheme4
Other Grants and Subsidies
Payments under Local Government (Rates and
Charges Remissions) Act 1991
Payroll Tax Assistance
Transfer to the Consolidated Fund
Other Administered Expenses
Total Administered Expenses
3 737 418) 3 969 497) 4 055 184) 4 283 507) 4 246 730)
602 045)
591 107)
557 333)
562 514)
564 137)
4 819 840) 5 049 275) 5 076 479) 5 071 321) 5 089 732)
Notes:
1. The decrease in the Energy Retailer Concession reflects the removal of a provision made in 2014-15 which was
unutilised and is no longer required, together with the revision of projected expenditure across the Budget and Forward
Estimates period.
2. The First Home Builder Boost in 2015-16 and across the Forward Estimates reflects the Government's decision to
continue the Scheme to 31 December 2015 at a level of $20 000 and then at $10 000 from 1 January 2016 on an
ongoing basis.
3. The increase in the Management of Australian Government Funding in 2015-16 and 2016-17 primarily relates to the
redevelopment of the Royal Hobart Hospital and funding for roads infrastructure.
4. The decrease in the Natural Disaster Relief Scheme primarily reflects the finalisation of most of the 2013 Tasmanian
Bushfire Recovery costs.
5. The decrease in Tasmanian Forestry Agreement in 2015-16 reflects the delivery of programs under the National
Partnership Agreement on the Implementation of the Tasmanian Forests Intergovernmental Agreement 2013 which
will conclude in 2017-18.
Australian Government Contribution for Extension of Pensioner Concessions
The purpose of this item is to provide non-Budget sector agencies with funds to cover the additional cost
of maintaining existing concession arrangements following an extension by the Australian Government,
from 1 April 1993, of eligibility for the Pensioner Concession Card.
Finance-General
51
Energy Retailer Concession
In accordance with the Electricity Supply Industry Act 1995, the Government has entered into a Community
Service Obligation agreement with Aurora Energy Pty Ltd to provide concessions to eligible low income
earners and pensioners to assist them in meeting the cost of services provided by Aurora Energy.
Payments are made to Aurora Energy, which passes the benefit on to eligible customers as lower service
charges.
First Home Builder Boost
The Government has agreed to extend the $20 000 grant to 31 December 2015 which is expected to
support ongoing demand for new homes by first home buyers and allow a slower taper of grant assistance.
The tapering of grant assistance for first home buyers of newly constructed homes from $30 000 to
$20 000 and then to $10 000 was originally designed to minimise the impact on the building industry from
a more sudden reduction. However, uptake of the $30 000 grant has far exceeded expectations and this
has impacted the transition to a reduced amount. Extending the grant at the level of $20 000 will allow a
slower taper of the current surge in residential building activity.
Local Government Grants
Local Government Grants are comprised of two components: general purpose funding and identified local
road funds. Under the Australian Local Government (Financial Assistance) Act 1995, the
Australian Government each year provides funds to the states for on-passing as general purpose grants to
local government.
Natural Disaster Relief Scheme
A limited Tasmanian Natural Disaster Relief Scheme, administered by the Department of Premier and
Cabinet, is funded from within Finance-General. This Scheme provides for payments to local government
authorities that face 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.
A provision of $532 000 has been included in the 2015-16 Budget allocation and forward estimates for
Finance-General for payments that may be made under the Natural Disaster Relief Scheme.
Tasmanian Bushfire Recovery
The Government will provide $606 000 in 2015-16 to fund private property fuel reduction and
Fire Management Committee initiatives following the 2013 Tasmanian bushfires. This is in addition to the
continued implementation of the Government's commitment to funding general fuel reduction burns (see
chapter 9 of this Budget Paper).
52
Finance-General
Payments under the Local Government (Rates and Charges Remissions) Act 1991
In accordance with the provisions of the Local Government (Rates and Charges Remissions) Act 1991, the
pensioner rates remission scheme provides a remission of 30 per cent off council rates and charges, up to
a defined maximum annual amount for eligible pensioners. The maximum remission is indexed annually to
ensure that rate relief increases in line with inflation.
Prior to 1 July 2009, as councils rates and charges included water and sewerage charges in addition to the
general rates, the rates remission calculation included remissions on both general rates and water and
sewerage charges components.
With the introduction of the water and sewerage reforms, from 1 July 2009, water and sewerage services
and charges became the responsibility of the water and sewerage corporation. A separate concession on
water and sewerages charges is offered by the Government through TasWater Pty Ltd to eligible card
holders. This concession effectively replaces the previous water and sewerage charges remission
component under the pensioner rates remission scheme.
For 2015-16, the maximum pensioner rate remission concession will be capped at $288 for those
pensioners who are customers of TasWater and will be $425 for those pensioners who are not customers.
Payroll Tax Assistance
The purpose of this grant is to provide financial assistance to organisations, subject to various eligibility
criteria being met. Some organisations receive assistance by way of grants equivalent to their payroll tax
liability and are entitled to assistance when their payroll expenditure exceeds the threshold limit, currently
$1.25 million per annum.
Jobs Package Payroll Tax Rebate
The fourth Employee Incentive Scheme Payroll Tax Rebate (EISPR4) was introduced as part of the
Government's Job Creation Package and operates in conjunction with EISPR3 (EISPR3 concludes on
31 December 2015). EISPR4 provides a payroll tax rebate of up to two years for private sector employers
who create additional eligible positions in Tasmania from 30 June 2014 to 30 June 2015. The additional
positions must be maintained until at least 30 June 2016. The Government estimates that the cost of
EISPR3 and EISPR4 during 2015-16 will be $3.3 million.
Qantas Airways Limited
The Government is continuing its financial assistance package to Qantas, including payroll tax relief of
$1 million per annum for nine years from 2015-16, ending with a final reimbursement of $250 000 in
2024-25. 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
increased employment at the Hobart Contact Centre.
Tasmanian Forests Agreement
Funding committed to the Tasmanian Forests Agreement by the State and Australian Government is set
out in the National Partnership Agreement on the Implementation of the Tasmania Forests
Intergovernmental Agreement 2013.
The 2015-16 Budget does not include any receipts of future funding from the Australian Government or
expenditure of these funds under the NPA.
Finance-General
53
The funding in the Budget and Forward Estimates includes expenditure to complete delivery of the
Tasmanian administered programs, including the Ministerial Advisory Council, residues and special species
studies and support for affected workers. It also includes funds committed to support rescheduled
harvesting and plantation management.
Water and Sewerage Concessions
Under the Water and Sewerage Industry (Community Service Obligation) Act 2009 concessions are made
available to eligible low income earners and pensioners to assist them in meeting the cost of services
provided by TasWater Pty Ltd. Payments are made to TasWater which pass the benefit on to concession
card holders as lower service charges. Persons eligible for the concession are current holders of a
Health Care Card, Pensioner Concession Card, or Department of Veterans' Affairs Repatriation Health Gold
Card.
Water and Sewerage Headworks Holiday
The Government has committed to provide a two-year waiver of water and sewerage headworks charges
for all developments by way of a Water and Sewerage Headworks Holiday. A $5 million grant has been
provided in 2015-16 to support TasWater's waiver of headworks charges to March 2016.
54
Finance-General
Table 3.9:
Statement of Financial Position as at 30 June - Administered
Budget)
2017)
Forward)
Estimate)
2018)
Forward)
Estimate)
2019)
Forward)
Estimate)
$'000)
$'000)
$'000)
$'000)
$'000)
905 785)
204 747)
68 518)
877 491)
190 016)
77 463)
684 882)
180 238)
77 463)
691 480)
170 300)
77 463)
697 049)
161 891)
77 463)
Equity investments1
4 331 709)
4 515 047)
4 570 765)
4 626 559)
4 722 325)
Other financial assets2
731 736)
6 242 495)
639 178)
6 299 195)
659 225)
6 172 573)
662 928)
6 228 730)
680 503)
6 339 231)
1 284)
820)
820)
820)
820)
91 768)
831)
93 883)
94 346)
811)
95 977)
117 696)
811)
119 327)
113 803)
811)
115 434)
109 286)
811)
110 917)
6 336 378)
6 395 172)
6 291 900)
6 344 164)
6 450 148)
Assets
Financial assets
Cash and deposits
Investments
Receivables
Non-Financial Assets
Assets held for sale
Property, plant and equipment3
Other assets
Total Assets
Liabilities
Payables
2015)
2016)
Budget)
9 130)
10 924)
10 748)
10 664)
10 282)
1 183 517)
978 263)
816 155)
733 327)
513 655)
5 433 361)
5 467 462)
5 589 514)
5 699 373)
5 793 656)
210 665)
6 836 673)
213 042)
6 669 691)
220 882)
6 637 299)
228 159)
6 671 523)
236 478)
6 554 071)
Net Assets (liabilities)
(500 295)
(274 519)
(345 399)
(327 359)
(103 923)
Equity
Reserves
Accumulated funds
Total Equity
11 901)
(512 196)
(500 295)
11 901)
(286 420)
(274 519)
11 901)
(357 300)
(345 399)
11 901)
(339 260)
(327 359)
11 901)
(115 824)
(103 923)
Interest bearing liabilities4
Superannuation5
Other liabilities6
Total Liabilities
Notes:
1. Equity investments represents the Government's equity interest in government businesses measured as the
consolidated value of their net assets.
2. The decrease in Other financial assets represents the estimated movement of deferred tax assets and liabilities held
by government businesses.
3. The increase in Property, plant and equipment primarily reflects the capitalisation of leasehold improvements following
completion of the sale and transfer of the parliament square land in December 2014.
4. Interest bearing liabilities consists of Australian Government borrowings of $180.9 million incurred under various
Commonwealth-State Housing Agreements, estimated borrowings of $477.8 million through Tascorp and deposits of
$319.6 million held on behalf of agencies in the Special Deposits and Trust Fund.
5. The movement in the Superannuation liability reflects the most recent actuarial estimates of the liability. Further
information on Superannuation is included in chapter 7 of The Budget Budget Paper No 1.
6. Other liabilities is principally comprised of the Tasmanian Risk Management Fund's (TRMF) liabilities. Further
information on the TRMF is included in chapter 7 of The Budget Budget Paper No 1.
Table 3.10:
Statement of Cash Flows - Administered
2014-15)
2015-16)
Budget)
Budget)
2016-17)
Forward)
Estimate)
2017-18)
Forward)
Estimate)
Finance-General
2018-19)
Forward)
Estimate)
55
$'000)
$'000)
$'000)
$'000)
$'000)
494 470)
527 016)
525 354)
519 666)
536 296)
2 588 102)
3 017 224)
3 083 093)
3 100 128)
3 268 136)
887 498)
927 185)
939 190)
953 153)
970 663)
Sales of goods and services
97 162)
89 993)
89 921)
92 472)
95 268)
GST receipts
13 500)
13 500)
13 500)
13 500)
13 500)
Cash flows from operating activities
Cash inflows
Appropriation receipts - recurrent
Grants
Taxation
18 867)
17 979)
18 591)
22 343)
21 788)
Dividends received
576 658)
225 010)
203 998)
264 745)
231 763)
Other cash receipts
105 378)
107 583)
107 226)
106 833)
106 430)
4 781 635)
4 925 490)
4 980 873)
5 072 840)
5 243 844)
Superannuation
(241 328)
(257 473)
(270 043)
(282 965)
(298 675)
Borrowing costs
(11 214)
(10 369)
(10 995)
(11 845)
(10 439)
(13 500)
(534 203)
(13 500)
(554 215)
(13 500)
(492 918)
(13 500)
(253 162)
(13 500)
(306 754)
(3 737 418)
(3 969 497)
(4 055 184)
(4 283 507)
(4 246 730)
(125 902)
(110 864)
(108 940)
(112 057)
(115 011)
(4 663 565)
(4 915 918)
(4 951 580)
(4 957 036)
(4 991 109)
118 070)
9 572)
29 293)
115 804)
252 735)
(32 301)
(37 015)
(54 419)
(29 241)
(28 391)
Proceeds from the disposal of non-financial assets
17 249)
15 108)
14 797)
15 374)
14 937)
Equity injections and cashflows from restructuring
(39 127)
(51 366)
(29 950)
(22 450)
(22 450)
Interest received
Total cash inflows
Cash outflows
GST payments
Grants and subsidies
Transfers to the Consolidated Fund
Supplies and consumables
Total cash outflows
Net cash from (used by) operating activities
Cash flows from investing activities
Payments for acquisition of non-financial assets
Net advances paid
Net cash from (used by) investing activities
56
Finance-General
766)
11 646)
9 778)
9 939)
8 410)
(53 413)
(61 627)
(59 794)
(26 378)
(27 494)
Table 3.10:
Statement of Cash Flows - Administered (continued)
2014-15)
2015-16)
Budget)
2016-17)
Forward)
Estimate)
2017-18)
Forward)
Estimate)
2018-19)
Forward)
Estimate)
Budget)
$'000)
$'000)
$'000)
$'000)
$'000)
(333 983)
(193 043)
(162 108)
(82 828)
(219 672)
(333 983)
(193 043)
(162 108)
(82 828)
(219 672)
(269 326)
(245 098)
(192 609)
6 598)
5 569)
1 175 111) 1 122 589)
877 491)
684 882)
691 480)
684 882)
691 480)
697 049)
Cash flows from financing activities
Net borrowings
Net cash from (used by) financing activities
Net increase (decrease) in cash and cash
equivalents held
Cash and deposits at the beginning of the
reporting period
Cash and deposits at the end of the reporting
period
905 785)
877 491)
Finance-General
57