T reasury’s overall purpose is to promote sustainable fiscal strength and economic development of the Northern Territory and contribute to improved social and fiscal wellbeing for Territorians.
Achievement of this purpose is measured through five strategic objectives:
1.
Best practice financial management
2.
Quality analysis and public policy advice on economic, social and commercial issues
3.
Effective intergovernmental financial relations
4.
A fair and efficient Territory revenue system
5.
Effective public sector superannuation arrangements
This section reports on Treasury’s performance in delivering outputs to meet these strategic objectives. Details are provided on key projects and achievements during the year, with performance recorded for the priorities identified in last year’s annual report.
Performance against the measures published in
Budget Paper No. 3 is reported in the output performance tables. In almost all cases, measures were met or exceeded. Where performance did not meet the estimate, an explanation is provided.
Performance reporting for the Utilities Commission and Treasury
Corporation is included in this section. These two statutory offices form part of Treasury for administrative purposes, however full details of achievements in 2011‑12 are reported in their respective annual reports.
Financial Management
Economic Management
Intergovernmental Relations
Revenue Management
Superannuation
12
Completed – priorities have been finalised in the previous financial year
In Progress – priorities have a deadline, and should be completed in the near future
Ongoing – priorities are a long‑term project and therefore do not have a set deadline, or are priorities that need to be met annually and will then carry over to the following year
Achievements

Strategic Objective
Best practice financial management
Outputs Delivered
Analysis and policy advice on resource allocation and reporting of the Territory’s financial resources through:
• whole of government budgeting and financial reporting;
• monitoring agency financial and output performance;
• analysis of agency budget requirements and proposals;
• contribution to the development of major projects across government;
• reporting and analysis of infrastructure budget requirements and responsibility for development of the Territory’s Infrastructure
Program;
• management of financial accountabilities as prescribed in the
Financial Management
Act
(FMA); and
• prudent management of the
Government’s loans, borrowings and investment programs.
Key Achievements
Developing the Northern Territory Budget is one of Treasury’s primary roles and a major annual activity. The 2012‑13 Budget, tabled in
Parliament in May 2012, was developed in a continuing period of uncertainty in the global economy that has dampened consumer and business confidence in Australia. This continuation of subdued economic conditions at the national level contributed to a further reduction in Government revenues, most notably the goods and services tax (GST) and mining royalties, providing considerable challenges in developing the Territory’s Budget. In an effort to offset these significant revenue losses, Treasury provided Government with detailed advice in the lead up to the 2012‑13 Budget on the implications for the Territory’s financial position and fiscal strategy.
Treasury’s advice was aimed at ensuring the ongoing commitment to expenditure restraint measures in order to restrict operational growth.
In addition, advice was provided in relation to capital spending on the back of a positive Territory economic outlook and increasing private sector investment.
Treasury is responsible for the preparation of the Treasurer's Annual
Financial Report (TAFR), which includes the audited final budget outcome for the year. The 2010‑11 TAFR was tabled in the Legislative
Assembly in October 2011 and provided a complete set of financial statements for all sectors as required by national standards.
It also included detailed analysis on the end of year fiscal position and approved Budget variations in accordance with the FMA.
The Auditor‑General issued an unqualified audit opinion for the TAFR, against Australian Accounting Standards Board (AASB) 1049 Whole of
Government and General Government Sector Financial Reporting.
The
Fiscal Integrity and Transparency Act requires the release of a mid‑year fiscal outlook report each year. The 2011‑12 Mid‑Year Report was tabled in the Legislative Assembly in November 2011 and provided updated Budget projections from the May 2011 Budget by incorporating the effect of the 2010‑11 outcome, new and expanded policy decisions and revised revenue estimates. The report also provided updated financial statements on a sector and whole of government basis in line with the revised parameters, discussion on updated economic estimates and the fiscal outlook for 2011‑12 and three forward years.
2011-12 Annual Report 13

The Conditions of Service
Reserve (COSR) is managed by the Treasury Corporation on behalf of Central Holding
Authority (CHA). The funds are managed by three investment managers: AMP Capital
Investors Limited, Colonial First
State Investments Ltd and MLC
Implemented Consulting. The
COSR fund has a long‑term investment strategy oriented towards growth assets, such as Australian and international equities, and is benchmarked against the Australian
Superannuation Survey
'Multi‑sector Growth' product category.
As at 30 June 2012, the COSR is valued at approximately
$435 million. The combined long‑term investments held in the COSR returned
‑0.39 per cent in 2011‑12, consistent with the benchmark return of ‑0.40 per cent. While this short‑term, absolute performance is affected by global markets, driven largely by events in Europe, the fund has managed to out perform its benchmark over a 3, 5, 7 and 10‑year time frame, which more closely reflects the investment term for these funds.
Treasury is responsible for administering the Territory’s financial management framework, including the FMA, the
Fiscal Integrity and
Transparency Act and the Treasurer’s Directions. In 2011‑12, work continued on expanding the range of Treasurer’s Directions and policy briefs to improve guidance and governance practices for agencies on infrastructure management, Commonwealth revenue and the development of National Partnerships (NPs), project agreements and
Implementation Plans (IPs) established under the Intergovernmental
Agreement on Federal Financial Relations (IGA).
In addition to ongoing policy development, the FMA was amended to incorporate changes required to implement the National Health Reform
Agreement (NHRA).
Treasury continues to be involved in the early development stages of major Territory Government projects and initiatives, to assist in providing a better understanding of project resource requirements and resource availability. In 2011‑12, this included the funding implications arising from the national equal remuneration case for the social, community and disability services sector, Government’s response to the Review of the Youth Justice System and review of progress against recommendations from the Board of Inquiry into the Child Protection
System.
As the Territory Government’s central financing authority, Treasury
Corporation implements the Government’s borrowing program. The
2011‑12 borrowing requirement was significantly higher than 2010‑11, with approximately $906 million raised to refinance maturing debt and additional borrowings for Territory government agencies, business divisions and corporations. In addition, given the volatility in credit markets and the expected challenging conditions remaining in 2012‑13,
Treasury Corporation has successfully pre‑funded $492 million of the
2012‑13 program, taking total borrowings in 2011‑12 to $1398 million.
Consistent with recent years, Treasury Corporation’s entire borrowing requirement was met from domestic financial and retail markets.
The bulk of the funds were raised through a number of medium to long‑term fixed interest securities, issued to institutional investors through private placement and public issue. Treasury Corporation’s funding requirements in 2011‑12 resulted in the establishment of two new benchmark lines of bonds to November 2017 and
September 2018. Territory Bonds contributed approximately $37 million in funding for the year.
14 Achievements

The cost of the borrowing target for 2011‑12 was revised down to 5 per cent from 6.50 per cent during the year to reflect lower outright medium‑term bond rates despite the expansion in the credit margins demanded by investors for semi‑government bonds.
The actual outcome for Treasury Corporation’s term funding was 4.97 per cent, 0.03 per cent below the revised budget estimate.
The weighted average cost of borrowing was 4.86 per cent if short‑term promissory note issuances during the year are included.
Output Performance
Completed In Progress Ongoing
Priorities for 2011‑12
Continued focus on monitoring, development and publication of critical whole of government financial information in the Budget, TAFR and
Mid‑Year Report.
Continue to provide advice, analysis and assistance on whole of government, major project and agency resource issues as required.
Ongoing development and amendment of Treasurer’s Directions, with improvement to the agency budget management section a priority for 2011‑12.
Final testing and implementation of an expanded infrastructure reporting system.
Evaluate ongoing opportunities for enhancement to whole of government budget and reporting systems.
Implement the Government’s 2011‑12 borrowing program.
Status Results in 2011‑12
• 2010‑11 TAFR released October 2011.
• 2011‑12 Mid‑Year Report released November 2011.
• Treasurer’s Quarterly Financial Report released
December 2011, February 2012 and May 2012.
• 2012‑13 Budget released 1 May 2012.
• Treasury has been involved in the development stages of a number of commercial and infrastructure projects to support service delivery as well as major policy reforms and reviews.
• New Treasurer’s Directions introduced to improve guidance and governance practices for agencies on infrastructure management and the development of
NPs, project agreements and IPs established under the
IGA.
• Testing of the new system is continuing with availability expected by December 2012.
• Testing of system upgrade and improved database environment is nearing completion, with conversion planned for late November 2012.
• Implemented refinancing and a new borrowing program, with $1398 million borrowed in 2011‑12.
2011-12 Annual Report 15

Continue to enhance Treasury
Corporation’s business continuity planning and corporate governance framework.
Continue to ensure the Territory’s funding investment liquidity benchmarks are met.
• Risk assessment processes reviewed and amendments made to monthly compliance reporting. Business continuity plan in place and worked with Treasury
Information Technology (IT) Services to improve access to key systems.
• Funding was sourced at approximately 0.38 per cent over AAA‑rated semi‑government issuers, slightly below the revised benchmark of 0.40 per cent. Investment returns on the CHA portfolio were 0.32 per cent above benchmark. Liquidity was managed throughout the year by monitoring and forecasting cash flows on a weekly basis and undertaking borrowing activity slightly ahead of the scheduled borrowing program.
Future Priorities
• Publish a Pre‑Election Fiscal Outlook report within ten days of the issue of a writ for a Northern Territory general election as required by the
Fiscal Integrity and Transparency Act
.
• Preparation of a Mini Budget.
• Assist government in the development of the 2013‑14 Budget.
• Continue focus on monitoring, developing and publishing critical whole of government financial information in the Budget and TAFR.
• Continue to provide advice, analysis and assistance on whole of government major projects and agency issues that have resource implications, including national funding agreements.
• Ongoing development and amendment of Treasurer’s Directions.
• Final testing and implementation of an expanded infrastructure reporting system.
• Evaluate ongoing opportunities for enhancement to whole of government budget and infrastructure reporting systems.
• Implement the Government’s 2012‑13 borrowing program.
• Continue to enhance Treasury Corporation’s business continuity planning and corporate governance framework.
• Continue to ensure the Territory’s funding, investment and liquidity benchmarks are met.
16 Achievements

Strategic Objective
Quality analysis and public policy advice on economic, social and commercial issues
Outputs Delivered
Analysis and policy advice on national and Territory economic, commercial, social, demographic and statistical issues.
Key Achievements
Following the release of the Productivity Commission’s final report on a national long‑term disability care and support scheme, COAG agreed on reform of disability services through the introduction of a NDIS, in August 2011. The NDIS aims to provide appropriate lifetime care, support, therapy and equipment to individuals who have a disability, regardless of how they acquired it. The scheme will be trialled in select areas from July 2013. Treasury has been involved in a Commonwealth, state and territory working group to discuss and develop key design and threshold issues, such as funding and governance, which will underpin the full implementation of the NDIS.
Following the extensive flooding in Queensland in late 2010 and early
2011, the Commonwealth advised states and territories that a review of the NDRRA would be undertaken and that states and territories would be required to submit details on their essential public assets and associated insurance arrangements to the Commonwealth
Department of Finance and Deregulation for review. Subsequently, the
Commonwealth requested that local governments also submit their asset and insurance arrangements for review.
Treasury was responsible for preparing the submission for the Territory
Government and coordinating for the Territory local government, which were submitted in September 2011 and March 2012, respectively.
Further work may be required in 2012‑13 following the release of a report on the appropriateness of insurance arrangements by the
Department of Finance and Deregulation.
Treasury officials are members of, and provide secretariat to, the
Territory Government’s Statistical Liaison Network (SLN), which was established to provide a central portal for data needs and capabilities across Territory Government agencies.
During 2011‑12, Treasury coordinated and chaired a SLN meeting in
May 2012, with attendance by most Northern Territory Government agencies and the ABS.
Treasury, in consultation with Darwin Port Corporation and the
Department of Lands and Planning, assisted in the development of the
Darwin Port Corporation Legislation Amendment Act
(No. 11 of 2011)
(the Act), which was assented to on 18 April 2011. The Act formalises a non‑exclusive pilotage licensing framework, specifies stevedoring licence criteria and establishes an independent appeals mechanism for
2011-12 Annual Report 17

Treasury, along with the
Department of Lands and Planning and the
Department of Housing, Local
Government and Regional
Services, continued its participation and contribution to the work program of the Housing Supply and
Affordability Reform (HSAR) inter‑governmental working group.
The Standing Council on
Federal Financial Relations presented the Final Housing
Supply and Affordability
Reform Report to COAG out of session in February 2012.
The report provided COAG with a list of recommendations aimed at improving the efficiency of housing supply and affordability. Key recommendations in the HSAR final report include:
• nationally consistent principles for housing development infrastructure charges;
• greater consistency in planning approval processes;
• an analysis of the effectiveness of the First
Home Owners Scheme; and
• the impact of affordable housing initiatives. stevedore and pilotage licensing decisions to enhance transparency in the licensing process.
Commencement of the Act was subject to consequential amendments to port‑related regulations, the development of instruments of appointment of the Harbourmaster and the preparation of pilotage technical and safety standards that are required to be published by the
Harbourmaster under the Act.
On 12 December 2011, sections 5(3), 5(4) and 9 of the Act were commenced, with the remaining sections commenced on 4 July 2012.
In addition, on 4 July 2012, notices advising the making of by‑laws,
Marine (Pilotage) Amendment Regulations, appointment of the
Harbourmaster, the technical and safety standards for pilotage and the provision of pilotage services for the Port of Darwin were gazetted.
Treasury, in conjunction with the Department of Lands and Planning, has been working on a package of reforms to improve consumer protection for home builders in the Northern Territory. This work has included advice on options for potential reforms to the Home Building
Certification Fund (HBCF) and arrangements for the provision of residential building cover products in the Northern Territory.
In March 2012 the Building Amendment (Residential Building
Consumer Protection) Bill 2011 was passed by Parliament and is scheduled to commence on 1 January 2013. Treasury has provided input on the establishment of the industry fidelity fund, along with the prudential and financial standards that the fund will be required to meet. Treasury has also provided advice on the management and financial arrangements for the HBCF, which will be closed on the commencement of the Bill.
18 Achievements

Treasury provides a range of publications that analyse key economic, demographic and social indicators as a basis for policy development by Government. The publications also serve to improve awareness, quality and use of statistics in the Territory.
Publications released through 2011‑12 include:
• the Northern Territory Economy book (as part of the 2012‑13
Northern Territory Budget);
• 12 editions of the Territory Economic Review, with weekly updates;
• 11 editions of the Territory Social Indicators; and
• 151 economic briefs.
Further details on publications released throughout 2011‑12 are provided in the Publications section of this report.
The Grocery Price Survey was conducted in December 2011 and
June 2012. The survey monitors grocery prices by measuring the cost of purchasing an average basket of goods at major supermarkets across the Territory. The June 2012 survey covered 18 supermarkets across the Territory including the Woolworths Supermarket in
Nhulunbuy and the IGA Supermarket in Yulara.
Population projections have been prepared to assist in future planning of the Territory including service delivery and infrastructure provision. In conjunction with Charles Darwin University (CDU), Treasury published an update of the official Northern Territory Government Population
Projections in September 2011. The projections are by single year of age, gender and Indigenous status, for the period 2010 to 2040.
Projections are also available for the six Territory Government statistical regions to 2026 by five‑year age groups, Indigenous status and gender.
Treasury’s assessment and advice on commercial projects seeks to optimise financial and service delivery outcomes at an appropriate level of risk.
During 2011‑12, commercial and financial assessment and advice was provided on a number of Government projects including:
• the Darwin Correctional Precinct Public Private Partnership Project;
• the Darwin Marine Supply Base; and
• various residential land release projects.
Treasury worked closely with the
Australian Bureau of Statistics
(ABS) to encourage community and Territory Government participation in the 2011
Census. Treasury signed a collaborative arrangement with the ABS, which underpinned the engagement between Treasury and the
ABS including employment of
Territory Government staff on the Census project. As a result of the arrangement, about
40 employees from Territory
Government agencies were deployed to assist the ABS in
Census‑related activities. The majority worked as Remote
Area Mobile Team members going to remote areas to assist local community members engaged by the ABS to enumerate local residents.
Other staff were engaged as special collectors in urban locations. This role involved working with both the ABS and local non‑government organisations to enumerate local homeless people, campers living temporarily in locations and people in caravan parks. These groups are often missed in Census counts due to their transient nature.
An initial indicator of the success of this collaboration was a reduction in the
Census undercount rate from 7.6 per cent in the
2006 Census to 6.9 per cent in the 2011 Census.
2011-12 Annual Report 19

Output Performance
Completed In Progress Ongoing
Priorities for 2011‑12
Continue to ensure the Territory maintains an efficient regulatory framework for business and industry that promotes economic development, including meeting national reform commitments.
Participate in development and implementation of the Territory’s electricity market reform program.
Continue to provide advice and assistance on major government projects as required.
Produce monthly social indicator publications.
Continue to provide advice on the performance of the Territory economy and demographic issues.
Status Results in 2011‑12
• Participation in the implementation of various National
Partnership Agreement to Deliver a Seamless National
Economy (SNE) reforms.
• Government commenced a Guaranteed Service Level scheme, which prescribes for electricity suppliers to provide rebates to customers affected by poor performance. Further, an Electricity Standards of
Service Code has been developed and is expected to be finalised in November 2012.
• Assisted in achieving financial close on the Darwin
Correctional Precinct Public Private Partnership Project and provided commercial and financial assessment and advice on other agency projects. Treasury participated in the evaluation of the bids for the
Marine Supply Base Project, and negotiations with the preferred proponent. An agreement was reached and finalised with ShoreAsco in April 2012.
• Treasury prepared 11 Social Indicator publications during 2011‑12, which summarise publicly available data on the state and territory and national social and demographic characteristics.
• Published Northern Territory Economy, a Budget‑related document that provides a comprehensive annual review of the Territory economy as well as forecasts for major economic parameters and industries.
• Published weekly economic briefs on key economic and demographic parameters.
• Published weekly updates of the Territory Economic
Review, a summary publication of key economic and demographic parameters released in the month.
20 Achievements

Continue to monitor grocery prices across the Territory.
• Published the findings of grocery price surveys conducted in June 2011 and December 2012.
Collaboration with ABS to improve the quality and accuracy of the Territory
Census count in 2011.
• Deployment of staff to assist ABS in Census‑related activities, particularly in remote areas. Census coverage improved with 93.1 per cent of the Territory’s population counted in the 2011 Census compared to 92.4 per cent in the 2006 Census.
Future Priorities
• Continue to ensure the Territory maintains an efficient regulatory framework for business and industry that promotes economic development, including meeting national reform commitments.
• Participate in development and implementation of the Territory’s electricity market reform program.
• Continue to provide advice and assistance on major government projects as required.
• Continue development of economic, social and demographic analysis and forecasting capacity, and contribute to whole of government planning for future growth and service enhancement.
• Liaise with ABS to evaluate the outcomes of the 2011 Census and develop strategies to optimise the outcomes of the next census in 2016.
• Restructure and update the population projections model, in conjunction with CDU, based on data from the
2011 Census.
• Continue to enhance forecasting and economic and demographic modelling capacities.
2011-12 Annual Report 21

Strategic Objective
Effective intergovernmental financial relations
Outputs Delivered
Analysis and policy advice on intergovernmental financial relations issues including management of the Territory’s interests under the IGA and other public finance matters.
Key Achievements
In 2011‑12, Treasury continued to play an active role in the implementation of the IGA, both within the Territory and nationally. This included involvement in the development and implementation of NPs.
Treasury has worked closely with the Department of the Chief Minister and relevant Government agencies to develop, negotiate and monitor the suite of funding agreements established under the IGA. In 2011‑12,
Treasury was part of the Territory Government’s core negotiating team involved in the development of the Stronger Futures Northern
Territory National Partnership Agreement. Treasury was also involved in progress reviews of the performance frameworks of several national agreements, including the National Disability Agreement, the National
Affordable Housing Agreement, the National Healthcare Agreement and the National Education Agreement.
In 2011‑12, Treasury also continued to participate in a range of other forums progressing federal financial relations matters including Heads of Treasuries (HoTs), HoTs Deputies and the GST Administration
Sub‑committee.
In 2011‑12, Treasury provided input to the Commonwealth Grants
Commission's (CGC) work program, including the Report on GST
Revenue Sharing Relativities – 2012 Update. Treasury’s input included providing the CGC with data and submissions to its New Issues for the
2012 Update Discussion Paper.
The CGC has commenced work on the next major review of state revenue sharing relativities. The CGC’s preliminary work program is focused on improving the quality of the data used in the methodology for determining state GST shares. Treasury officials are participating in this process through the CGC’s Data Working Party.
Treasury continued to monitor and provide advice on changes in the underlying parameters that determine the Territory’s GST revenue share, including population, national GST collections and the CGC’s recommended GST revenue sharing relativities.
Treasury also provided advice to Government on a range of
GST‑related legislative proposals by the Commonwealth throughout the year, in order to protect the GST base.
22 Achievements

On 30 March 2011, the Prime Minister announced the Review of GST
Distribution (the Review), which is considering whether the current arrangements for distributing GST revenue between states and territories are appropriate to allow Australia to respond to future challenges, including continued globalisation, climate change, population growth and demographic change, changes in technology and addressing Indigenous disadvantage. The Review is being undertaken by a panel comprising the Hon Nick Greiner AC, the
Hon John Brumby and Mr Bruce Carter.
In considering the methodology for distributing GST revenue, the
Review Panel will have regard to equity, efficiency, simplicity and budget stability.
Treasury has provided three submissions to the Review, which comprehensively address the Review Panel’s Issues Papers and Interim
Reports. The Review Panel is expected to submit its Final Report to the
Commonwealth Treasurer in October 2012, for consideration by the
Council of Australian Governments (COAG) by the end of 2013.
Treasury officials are members of the Steering Committee for the
Review of Government Service Provision and the IER Working Group, which is responsible for preparing the national IER. The national IER is a COAG initiative designed to provide a national framework for reporting of government expenditure on services to Indigenous people.
During 2011‑12, Treasury contributed to work in preparing the second national IER, released in September 2012. Treasury’s involvement included providing input through intergovernmental working groups on the methodology for estimating Indigenous shares and providing the requested data to allow the Productivity Commission to estimate the
Territory Government’s Indigenous‑related expenditure.
Treasury will continue to participate in the biennial reporting of government expenditure on services for Indigenous people in the national IER.
During 2011‑12, Treasury contributed to the development of the NHRA, agreed by all governments in August 2011.
A key aim of the NHRA is to provide a more secure funding base for hospitals, which includes sharing of funding responsibilities between the Commonwealth and the states, the implementation of activity‑based hospital funding and the establishment of
Hospital Networks, responsible for managing small groups of hospitals. However, states will retain overall responsibility of hospitals through their role as system managers.
Treasury officials will continue to actively participate in the various intergovernmental and
Territory Government working groups, which are responsible for implementing the NHRA.
2011-12 Annual Report 23

Output Performance
Completed In Progress Ongoing
Priorities for 2011‑12
Actively participate in the ongoing implementation of the IGA including:
• providing advice to Northern
Territory agencies on specific agreements under the IGA; and
• participation in relevant HoTs forums.
Participation in the CGC 2012 Update and CGC Data Working Party.
Participation in the development of the 2012 IER.
Participation in the Review of GST
Distribution.
Actively participate in the negotiation and implementation of the NHRA.
Status Results in 2011‑12
• Treasury has continued its involvement in the implementation of the IGA, particularly the provision of advice regarding National Agreements (NAs), NPs and IPs, including those pertaining to the Territory’s performance and the development of new and revised
NPs and IPs.
• Treasury participated in the national review of NAs,
NPs and IPs and is continuing to be involved in its implementation.
• Treasury provided input into the 2012 Update through provision of Territory data and submission to the
CGC’s Discussion Paper – New Issues for the 2012
Update. Treasury is also a member of the CGC’s Data
Working Party, which was established to improve the quality of data used in the CGC’s methodology for the next review.
• Treasury has an ongoing role in the development of the second national IER through its membership on the Steering Committee for the Review of Government
Services and the IER Working Group.
• Treasury prepared comprehensive submissions to the
Review of GST Distribution on behalf of the Territory
Government, which responded to the Review Panel’s issues papers and interim reports.
• Treasury participated in working groups with
Department of Health officials and intergovernmental working groups in order to negotiate the terms of the
NHRA and its implementation in the Territory.
24 Achievements

Future Priorities
• Actively participate in the ongoing implementation of the IGA including:
– providing advice to Territory Government agencies on specific agreements under the IGA, including finalisation of Treasurer’s Directions for NAs, NPs and IPs;
– implementation of NA and NP performance frameworks that are conceptually valid and supported by robust data;
– ongoing participation in the implementation of the HoTs Review; and
– participation in relevant HoTs’ forums.
• Ongoing participation in the development of IER.
• Actively participate in the implementation of the NHRA.
• Participate in CGC working groups in preparation for the next major methodology review.
2011-12 Annual Report 25

Strategic Objective
A fair and efficient Territory revenue system
Outputs Delivered
Administration and management of the Territory’s revenue framework encompassing:
• policy and legislative advice;
• revenue collection including taxpayer management;
• compliance activities;
• administration of home assistance schemes;
• royalty administration; and
• community awareness and advisory services.
Key Achievements
A range of changes were made to systems, publications and processes to implement the 2011‑12 Budget revenue measures. In addition, legislative changes were made as part of the 2012‑13 Budget that are summarised in the Legislative Changes 2011‑12 section of this report.
As part of the 2011‑12 Budget, Treasury developed and implemented the framework for the BuildBonus grant scheme. This administrative scheme provides a one‑off $10 000 grant for owner‑builders and home buyers, including investors, who are building or purchasing a new home up to the value of $600 000. The scheme applies to contracts and owner‑builder commencements up to 31 December 2012. The scheme was extended twice during 2011‑12, with the value threshold increased from $530 000 to the current level of $600 000.
In 2011‑12, a data warehouse, associated business intelligence platform and reporting system were successfully implemented.
Business Intelligence is a tool used by most regulatory agencies to increase data holding and analysis capabilities. It will facilitate improved and timely reporting, more accurate compliance targeting through data matching and predictive analysis.
Following the comprehensive business process mapping undertaken in
2010‑11, a strategic refresh of the priorities for development of a new tax and royalty administration led to a focus on an affordable solution that reduced reliance on externally contracted programming resources.
The integration and upgrading of current systems will be undertaken, including delivering improvements to existing online processing of payroll tax, the introduction of online processing of stamp duties, mining royalties, and racing and gaming taxes.
Finally, a successful recruitment process was undertaken to create a capable information systems unit, enhancing capabilities in business analysis and business systems support.
26 Achievements

Output Performance
Completed In Progress Ongoing
Priorities for 2011‑12
Continue business information system development and enhancement by:
• completing functional and non‑functional specifications for a new revenue administration system;
• finalising request for tender documentation for development of an integrated IT solution to replace mainframe and supplementary systems; and
• developing a data warehouse to enable more effective analysis, reporting of information and to support revenue compliance activities.
Develop and implement 2012‑13
Budget‑related revenue options.
Status Results in 2011‑12
Comprehensive business process mapping and gap analysis was undertaken leading to the decision to implement modular, scalable upgrade of existing systems.
Initial scope developed for tender documentation, which will be released in 2012‑13.
Data warehouse, associated business intelligence platform and reporting system were successfully implemented.
Enhance revenue administration practices and legislation.
Legislation commenced from July 2012, including changes to the payroll tax exemption for parental leave and clarification of the taxation provisions in the
Gaming
Control Act
.
Enhancements were made to Territory’s revenue administration practices in line with legislative changes commencing during the year.
Progressed review of taxation and royalty administration legislation.
Progressed review of Commissioner’s taxation and royalty delegations.
Future Priorities
• Continue business information system development and enhancement by:
– completing integration and upgrading of current systems;
– commence implementation of modular upgrade of revenue administration systems; and
– continue development of data warehouse and reporting systems to enable more effective analysis, reporting of information and to support revenue compliance activities.
• Develop and implement 2013‑14 Budget‑related revenue options.
• Continue to enhance revenue administration practices and legislation.
2011-12 Annual Report 27

Strategic Objective
Effective public sector superannuation arrangements
Outputs Delivered
Superannuation policy for
Government and administration of Government‑managed superannuation schemes, including the relationship between national and Territory legislation and advice and assistance to investment and review boards.
Key Achievements
Progress continues to be made on the Superannuation Reform project, which is reviewing the administration of the Territory’s public sector superannuation schemes.
Stage 2 of the Reform Project involves a number of changes, including:
• expanding the Superannuation Trustee Board (STB);
• modernising three schemes (Northern Territory Government and Public
Authorities' Superannuation Scheme (NTGPASS), Northern Territory
Supplementary Superannuation Scheme (NTSSS) and Northern
Territory Government Death and Invalidity Scheme (NTGDIS));
• replacing the Superannuation Review Board with the Superannuation
Complaints Tribunal; and
• amalgamating Territory superannuation legislation for all schemes
(except the Supreme Court Judges Pension Scheme) into one Act.
Legislation has been introduced for the expansion of the STB.
Drafting of legislation for the remaining Stage 2 changes will continue.
Continuing on from the project to scan around 9000 active member records in the previous year, scanning of approximately 4000 creditor records was undertaken in 2011‑12. These members’ records are now fully electronic, resulting in administrative efficiencies. Electronic retention of various records will continue as part of continuous business improvement practices.
The Superannuation Office aims to provide informative material to assist members in understanding their NTGPASS entitlements, as well as superannuation in general. Information is available through a range of publications, including forms, fact sheets and information books, as well as our website content and information seminars. Information is kept up to date and new items are developed as required.
In the past year, a number of publications were revised in line with legislative changes or updated practices. New forms were added for members to advise change of pension details and claim death benefits, and a new fact sheet was published to explain anti‑detriment payments.
A number of amendments were made to the
Superannuation Act
, the
Superannuation Regulations, the
Legislative Assembly Member s’
Superannuation Fund Act and the Northern Territory Police
Supplementary Benefit Scheme Trust Deed to formalise changes approved as part of the reform project.

Output Performance
Completed In Progress Ongoing
Priorities for 2011‑12
Stage 2 of the Superannuation Reform project, to formalise the composition of the new STB, establish a mechanism for a second tier review of appeals and simplify NTGPASS and NTSSS through the establishment of a single benefit system.
Refocus effort to reduce the number of accounts where benefits remain unclaimed for a lengthy period.
Progressively introduce electronic retention of records throughout the
Superannuation Office, including member records.
Proceed with changes resulting from the Superannuation review culminating in the Stronger Super reforms, as they impact on the
Northern Territory Public Sector
(NTPS) superannuation schemes.
Finalise an anti‑detriment policy in line with contemporary practices.
Status Results in 2011‑12
Approval was provided for Stage 2 and legislation has been introduced for the expanded board representation.
Work continued to reunite members with their benefit.
Work continued with scanning of approximately
4000 creditor member records. Electronic retention of various records will continue as part of continuous business improvement practices.
Discussion is continuing with the Commonwealth to determine the extent these changes will apply to public sector superannuation schemes.
An anti‑detriment policy has been implemented and relevant publications are available to assist members.
Future Priorities
• Superannuation Reform Project – continue stage 2 of the reforms to amalgamate the Territory schemes into one Act, establish a second tier review of appeals mechanism and simplify NTGPASS and NTSSS through the establishment of a single benefit system.
• Commonwealth reviews – continue to work with the Commonwealth and other jurisdictions to consider
Stronger Super changes and their impact on Territory superannuation schemes.
• Lost members and unclaimed monies – continue effort to reduce the number of accounts where benefits have remained unclaimed for a lengthy period.
• Complete tender for a default superannuation service provider by April 2014.
2011-12 Annual Report 29

Financial Management
Table 1: Financial Management Output Performance
Performance Measures
2010‑11
Actual
Quantity
Develop and present the Budget 1
Financial performance reporting – TAFR, Mid‑Year Report, Treasurer’s quarterly financial reports
Capacity to provide policy advice and analysis on financial management issues
Quality
5
$6.65M
Acceptable audit opinion from Auditor‑General for TAFR yes
Timeliness
Budget published by date set by Treasurer yes
TAFR published in accordance with legislation yes
Mid‑Year Report published in accordance with legislation yes
Treasurer’s quarterly financial reports published in accordance with yes legislation
2011‑12
Actual
1
5
$7.07M yes yes yes yes yes
2012‑13
Estimate yes yes yes yes
1
5
$7.12M yes
30 Achievements

Economic Management
Table 2: Economic Management Output Performance
Performance Measures
Quantity
Capacity to provide policy advice and analysis on economic and related issues
Publish Northern Territory Economy
Publish Territory Economic Review
Publish Social Indicators
Timeliness
Briefings on ABS economic data provided on day of release
Economic publications published by agreed date
2010‑11
Actual
2011‑12
Actual
2012‑13
Estimate
$6.94M
1
11
11
100%
100%
$7.85M
1
12
11
100%
100%
$7.65M
100%
100%
1
12
11
Table 3: Payments on Behalf of Government
Performance Measures
Quantity
CSO payment for uniform tariff subsidy
GST collection costs
2010‑11
Actual
$60.73M
$6.92M
2011‑12
Actual
$61.56M
$6.90M
2012‑13
Estimate
$63.08M
$7.28M
2011-12 Annual Report 31

Territory Revenue Management
Table 4: Territory Revenue Management Output Performance
Performance Measures
2010‑11
Actual
2011‑12
Actual
Quantity
Territory revenue collected 1 $610.42M $616.25M
2012‑13
Estimate
$595.33M
Capacity to manage Territory revenue‑related activities $6.85M
Subsidy payments $9.35M
$6.77M
$9.77M
$7.65M
$10.06M
Quality
Territory revenue forecast accuracy 2 0.4% - 1.2% ± 5%
Stakeholder satisfaction survey rating:
Taxpayers 3 5.08
Assessment accuracy 4 99.9%
5.08
99.9%
≥ 5
≥ 99%
Accuracy of first home owner grant payments processed 100%
Timeliness
Revenue received within agreed timeframes 96.4%
Services completed within agreed service standards 5 97.3%
100%
95.8%
96.2%
100%
≥ 95%
≥ 95%
1 Includes taxes, gambling revenue and mining royalties.
2 This figure reflects the difference between the estimate in the 2012‑13 Budget and actual revenue collected.
3 Taxpayer satisfaction was determined via an email survey issued to more than 1700 clients.
4 This is the percentage of assessments issued for the year that have not been revised by way of allowed objections and appeals.
5 The measure is the weighted average performance of a series of lower level measures in the Territory Revenue Office Service Charter as published on the Territory Revenue Office website. Table 5 details the components that comprise the weighted average.
Table 5: Territory Revenue Office Standards Published in the Service Charter
2010‑11
Actual
%
94
2011‑12
Actual
%
94
2012‑13
Estimate
%
90 Stamp duty assessing document turnaround (proportion assessed within five working days)
Response to written inquiries within 14 days of receipt
Audits completed within respective timeframes 1
Objections determined within 120 days
Other grant applications determined within respective timeframes 2
90
77
80
100
87
67
87
100
100
80
80
100
1 The measure reflects Territory payroll tax, stamp duty and first home owner grant audits completed within 120 days and mining and petroleum royalty audits completed within 180 days of commencement.
2 The measure is the weighted average performance of other grant applications processed within the timeframes stated in the Territory
Revenue Office Service Charter. The relevant standards are that 95 per cent of approved first home owner grant payments are made within 24 hours of the payment eligibility date and other grant applications are paid within five business days of receipt of all relevant information.
32 Achievements

Superannuation
Table 6: Superannuation Output Performance
Performance Measures
Quantity
Capacity to provide policy advice and services on superannuation
Quality
Benefits processed
Compliance with legislative processing timeframes
Number of NTGPASS and NTSSS lost member accounts
Seminars held
Stakeholder satisfaction 1
1 Stakeholders are the superannuation scheme members and associated boards.
2010‑11
Actual
2011‑12
Actual
2012‑13
Estimate
$4.13M
2 017
100%
5 475
22
5
$4.37M
1 453
100%
3 984
15
5
$4.03M
1 900
100%
3 500
15
≥ 5
Statutory Bodies
Table 7: Utilities Commission Output Performance
Performance Measures
2010‑11
Actual
Quantity
Capacity to administer regulatory regime $0.59M
Capacity to advise Regulatory Minister $0.40M
Timeliness
Determinations and approvals issued within statutory timeframes 1 100%
2011‑12 2
Actual
$0.68M
$0.46M
100%
2012‑13
Estimate
$0.81M
$0.54M
100%
1 Covers determinations and approvals on monopoly pricing, minimum service standards and other activities as provided for under the
Utilities Commission Act and other relevant industry regulation legislation.
2 The increase in capacity measures values for both administration of the regulatory regime and advice to the Regulatory Minister, relates to a change in funding arrangements for the Commissioner’s position and one Regulatory Officer position, which were previously unfunded.
2011-12 Annual Report 33

Northern Territory Treasury Corporation
Table 8: Treasury Corporation Business Line Performance
Performance Measures
2010‑11
Actual
Quantity
Weighted average cost of borrowings during the year 5.29%
Quality
Borrowing rate margin compared to industry peers 1 + 0.22%
Investment portfolio return above benchmark 2 + 0.31%
Volatility of investment portfolio return against benchmark 2 + 0.31%
2011‑12
Actual
4.86%
+ 0.38%
+ 0.32%
± 0.32%
2012‑13
Estimate
6.00%
≤ 0.50%
> indices
± 0.25%
1 State and territory governments' central financing authorities.
2 The benchmark is the weighted relevant UBS Warburg indices. The composite benchmark return for 2011‑12 was 4.70 per cent while the Treasury Corporation achieved a return of 5.02 per cent.
34 Achievements