CPA Congress 2014
Andrew Barr MLA
Deputy Chief Minister
Treasurer
Minister for Economic Development
Minister for Tourism & Events
Minister for Housing
Growth, Diversification and Jobs
Competitive strengths and priorities
• ACT exported $1.27 billion of services in 2013 calendar year.
• ACT has 1.6% of Australia’s population, but 2.3% of its service exports.
• ACT’s service exports have averaged 7.3% annual growth over the last decade.
• Exports include:
• $624 million in travel exports (incl. Business- and education-related travel)
• $299 million in government goods and services
• $265 million in business services (incl. R&D services)
Competitive strengths and priorities
• Defence and security
• Department of Defence spends $1 billion p.a. directly in ACT and procures further
$15 billion p.a. throughout Australia, generally by Canberra-based decision makers.
•Digital economy and e-government
• World class innovators and digital infrastructure along with major institutions such
as NICTA and ANU. Approx. 25% of government expenditure on R&D in this arena
occurs in Canberra.
• Health and Sports Science
• World-class health system servicing a population of 800,000. Home to AIS, John
Curtin School of Medical Research and University of Canberra Sports Hub.
Competitive strengths and priorities
• Innovation and higher education
• More than 35,000 university students, including more than 10,000 international
students across five university campuses.
• Space, satellite and spatial sciences
•Trailblazing observatories and facilities such as the Advanced Instrumentation
and Technology Centre and Canberra Deep Space Communication Complex
including the largest antenna in the Southern Hemisphere.
• Tourism infrastructure
• High yielding business travel market, above national average occupancy rates,
high average takings and a strategic approach to growing regional tourism growth.
CBR Innovation Network and Invest Canberra
• Supporting ACT trade and investment activities in
Singapore, Hong Kong, China and USA.
• Generated 100 leads in first year with around 20
currently being case managed.
• Linking businesses and entrepreneurs to accelerate
innovation and growth to maximise wealth creation
• Independent not-for-profit company with ANU, CSIRO,
NICTA, UC and UNSW (Canberra) as foundation
members and financial contributors.
The right business environment
• Single level of government to deal with – combined state and municipal functions
• Strong ongoing regulatory reform agenda. E.g.:
• Extending maximum terms for business licences
• Simplifying fee structures
• Streamlining government procurement processes
• Highest payroll tax threshold in Australia
• Fairer, simpler and more efficient tax regime
Taxation reform
Making taxes fairer, simpler and more efficient
• Abolishing duty on insurance
• Phasing out Conveyance Duty
• Abolished commercial Land Tax
• Increasing Payroll Tax thresholds
• Abolished duty on short-term
leases
• Abolished duty on transfer of subleases
Replace revenue
through…
• Increased General Rates
• Commercial
• Residential, with
enhanced concessions
Capital Works Expenditure Program
700
600
$
millions
500
400
300
200
100
0
Actual
Actual
Actual
Actual
Actual
Actual
Actual
Actual
Actual
Actual
Est
Est
Est
Est
Est
03-04
04-05
05-06
06-07
07-08
08-09
09-10
10-11
11-12
12-13
13-14
14-15
15-16
16-17
17-18
Actual Expenditure
Source: ACT 2014-15 Budget Papers
Estimated Expenditure
Capital Provision
Capital Metro: $1 billion economic benefit
Historical Net Operating Balance Analysis
400
Estimate
Actual
300
GFC
C’wlth contraction
$
millions
200
100
0
-100
-200
-300
2017-18
2016-17
2015-16
2014-15
2013-14
2012-13
2011-12
2010-11
2009-10
2008-09
2007-08
2006-07
2005-06
2004-05
2003-04
2002-03
2001-02
-400
Note: The Net Operating Balance is presented on an Australian Accounting Standards (AAS) basis up until 2005-06 and reflects the Annual Consolidated Financial Statements. From 2006-07, the Net Operating Balance is presented on a
Headline basis, the ACT’s key fiscal indicator. This indicator is a representation of the AAS Net Operating Balance from transactions adjusted for the investment return differential on superannuation investments.
Where our money goes…