2020-21 Budget Paper 2 - Chapter 4 - Finance-General



4Finance-GeneralAgency OutlineThe FinanceGeneral Division is administered by the Department of Treasury and Finance. The major activities transacted through FinanceGeneral 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.Finance-General also includes funding to assist with the replacement of the Spirits of Tasmania (I and II) within the TT-Line Vessel Replacement Fund and funding for the transformation and replacement of major agency ICT infrastructure.Certain provisions have been made in the Public Account to meet future liabilities of the Government, including a provision within the Tasmanian?Risk?Management Fund (Specific Purpose Account) for workers’?compensation and other insurable risks in respect of innerBudget 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 InformationOutputs of Finance-General are provided under the following Output Groups:Output Group?1 Debt Servicing and Management;Output Group?2 Employee Related Costs;Output Group?3 Government Businesses; Output Group?4 Miscellaneous;Output Group 89?-?Public Building Maintenance Program; andOutput Group 90?-?COVID19 Response and Recovery.Table 4.1 provides an Output Group Expense Summary for Finance-General.COVID-19 Response and Recovery MeasuresTo enable the presentation of this important information, new Output Groups have been established. Output Group?89?-?Public Building Maintenance Program, reflects expenditure under the Government’s Public Building Maintenance Program and Output Group 90?-?COVID-19 Response and Recovery, reflects expenditure allocated to specific Government COVID-19 response and recovery initiatives. Further information in relation to these outputs is provided in chapter 12 of this Budget Paper. COVID19 Provision Funding of $145 million, in 202021, has been provided to establish an unallocated funding provision to meet currently unforeseen or uncertain COVID19 related costs (Output 90.3). This provision replaces that provided for within the Supply Act (No 1) 2020. Known COVID19 related costs in 202021 will be directly appropriated to relevant agencies through the 2020 Appropriation Acts. Many aspects of the future impact of the COVID19 pandemic remain uncertain at the time of the finalisation of the 202021 Budget. This includes the direct impact on the community of the spread of the virus, the impact on the economy, the level of demand for existing Government programs and commitments and the need for new economic and social measures that were not able to be accurately forecast or known at the time. The early establishment of the central provisions, in 201920 and in 202021, were important factors in enabling the Government to act quickly and appropriately to support the Tasmanian community. Given this ongoing high level of uncertainty and the success of this approach, it is considered important that a further provision be established in 202021 to provide the capacity for similar support to be provided.The funding allocated to the provision will be available to support currently uncertain costs in relation to the outcomes of the work of the Premier’s Economic and Social Recovery Advisory Council. Furthermore, following the finalisation of 2020-21 Budget information, the Government will continue to make decisions in relation to the implementation of measures to address the impact of the COVID-19 pandemic. Information in relation to new decisions will be provided in other announcements and in the 2020-21 Budget Speech. Where required, additional costs associated with these new measures will be funded from the COVID-19 Provision.Table 4.1:Output Group Expense Summary201920?202021?202122?202223?202324?Forward?Forward?Forward?Budget?Budget?Estimate?Estimate?Estimate?$'000?$'000?$'000?$'000?$'000?TreasurerOutput Group 1 - Debt Servicing and Management1.1 Debt Servicing135?21 365?45 665?55 438?63 817?1.2 Interest on Sundry Deposits22 089?563?616?792?989?1.3 Debt Management37 033?....?....?....?....?9 157?21 928?46 281?56 230?64 806?Output Group 3 - Government Businesses3.1 Sustainable Timber Tasmania2 000?2 000?2 000?2 000?2 000?3.2 State Fire Commission12 836?12 596?12 596?12 596?12 596?3.4 Government Businesses4....?2 574?4 698?4 903?5 090?14 836?17 170?19 294?19 499?19 686?Output Group 4 - Miscellaneous4.2 Treasurer's Reserve510 000?80 000?10 000?10 000?10 000?4.3 Miscellaneous6(13 309)4 394?545?474?474?4.4 Payment to Australian Tax Office: GST Administration13 399?12 803?12 805?12 808?12 808?4.9 ExGratia Assistance7610?6 200?300?300?300?10 700?103 397?23 650?23 582?23 582?Output Group 90 - COVID-19 Response and Recovery90.2 Local Government $200 million Interest Free Loans8....?3 400?6 000?....?....?90.3 COVID-19 Provision9....?145 000?....?....?....?90.4 Small Business Electricity Waiver10....?500?....?....?....?90.8 Tasmanian HomeBuilder Grant11....?10 000?10 000?....?....?....?158 900?16 000?....?....?Grants and Subsidies12460 067?604 444?533 887?648 007?746 457?Minister for FinanceOutput Group 2 - Employee Related Costs2.1 Superannuation and Pensions13370 154?304 502?244 432?230 747?217 661?370 154?304 502?244 432?230 747?217 661?Output Group 4 - Miscellaneous4.1 Information and Communication Technology1425 542?11 376?15 515?19 114?23 551?4.5 Tasmanian Risk Management Fund1570 968?80 937?85 894?84 044?87 094?4.6 Fleet Management Services15 726?16 642?17 058?17 476?17 894?4.7 Property Management Services1637 539?56 587?50 178?45 552?42 703?4.8 Infrastructure Investment Project Planning2 000?2 000?2 000?2 000?2 000?151 775?167 542?170 645?168 186?173 242?Table 4.1:Output Group Expense Summary (continued)201920?202021?202122?202223?202324?Forward?Forward?Forward?Budget?Budget?Estimate?Estimate?Estimate?$'000?$'000?$'000?$'000?$'000?Output Group 89 - Public Building Maintenance Program89.1 Public Building Maintenance Program17....?50 597?9 450?....?....?....?50 597?9 450?....?....?Output Group 90 - COVID-19 Response and Recovery90.1 Youth Employment Scheme18....?280?....?....?....?....?280?....?....?....?TOTAL1 016 689?1 428 760?1 063 639?1 146 251?1 245 434?Notes:The increase in Debt Servicing from 2020-21 primarily reflects anticipated increases in the estimated General Government Sector cash deficit.The variations in Interest on Sundry Deposits are primarily due to variations in cash balances over the Budget and Forward Estimates and lower interest rates.The decrease in Debt Management in 2020-21 reflects the waiver of debt associated with the Commonwealth State Housing Agreement. The increase in Government Businesses from 2020-21 primarily reflects payment to the Racing Industry of a share of the Point of Consumption Tax.The increase in Treasurer’s Reserve in 2020-21 reflects a one-off increase to meet expenditure that could not reasonably be foreseen at the time of developing the 2020-21?Budget particularly in relation to the COVID-19 pandemic.The increase in Miscellaneous in 2020-21 primarily reflects the Government’s decision to remove agency efficiency dividends from 2020-21 in response to the COVID19 pandemic. The decrease from 2021-22 reflects a decrease in expenditure associated with ongoing Government Business Reviews.The increase in Ex-Gratia Assistance in 2020-21 reflects additional payments to be made under section 55 of the Financial?Management Act 2016. This primarily includes payments in relation to corporate reconstructions.This reflects funding provided to local government by way of an interest rebate on eligible loans as part of the COVID-19 support measures. This reflects additional funding that has been provided to facilitate the funding of currently unknown future costs in relation to addressing the impact of the COVID-19 pandemic. This reflects funding provided for the finalisation of outstanding claims made for the Small Business Electricity waiver in 201920.This reflects grant funding of $20 000 for home owner-occupiers for eligible new home builds where the contract is signed between 4 June 2020 and 31 December 2020.For further information on the movement in Grants and Subsidies see Table 4.5 Administered Expenses. The decrease in Superannuation and pensions from 2020-21 primarily reflects a decrease in the discount rate used when calculating the State’s superannuation liability and associated expenditure.The decrease in Information and Communication Technology in 2020-21 primarily reflects the current estimated expenditure profile for the Tasmanian Government Radio Network project.The increase in Tasmanian Risk Management Fund in 2020-21 primarily reflects the latest insurance claim estimates provided by the State’s Actuary.The increase in Property Management Services in 2020-21 primarily reflects additional lease contracts that meet the definition of major office accommodation (defined in Treasurer’s Instruction C2 Contracts - Major Office Accommodation Leases) within FinanceGeneral, previously recognised by the tenant agency.This reflects funding provided for the Government’s Public Building Maintenance Program COVID19 related measure. The total value of the program is $70?million.This reflects funding provided as part of stage one of the Government’s social and economic support package.Output Group 1:Debt Servicing and Management1.1 Debt ServicingThis Output provides for the interest cost incurred in managing the State Government’s debt portfolio.1.2 Interest on Sundry DepositsThis Output provides for the payment of interest on balances held in certain Specific Purpose Accounts and Agency Trust Accounts. 1.3 Debt ManagementThis Output reflects transactions associated with the repayment of Australian Government debt relating to housing activities. Agreement was reached with the Australian Government for the waiver of the CommonwealthState Housing Agreement Debt on 20 September 2019.Output Group 2:Employee Related Costs2.1 Superannuation and PensionsThis Output meets the Government’s share of superannuation and pension costs in respect of defined benefit schemes.The superannuation and pension expense estimates includes service costs in respect of unfunded superannuation benefits and nominal interest costs on defined benefit liabilities. The estimated value of the expense is based on the most recent actuarial assessment of the superannuation liability.Further information in relation to the General Government superannuation liability can be found in chapter?7 of The?Budget?Budget?Paper?No?1.Output Group 3:Government Businesses3.1 Sustainable Timber TasmaniaThis Output provides funding to Sustainable Timber Tasmania to maintain its firefighting capacity and assist with fighting wild fires. 3.2 State Fire CommissionA provision of $12.6?million has been made for the State Fire Commission in 2020-21 and subsequent years. This includes a permanent increase of $9.8 million per annum to support the central provision for funding excess firefighting costs, taking the total provision to $10 million annually. As has been the case in the past, additional funding to meet bushfirerelated costs will be considered on a year by year basis depending upon funding requirements. A funding provision of $790?000 per annum supports the Bushfire?Mitigation Program and 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. Further information in relation to the Commission can be found in chapter 25 of this Budget Paper.3.4 Government BusinessesContribution to the Tasmanian Racing Industry (Point of Consumption Tax)The introduction of a Point of Consumption (POC) tax on wagering was announced in the 2019-20 Budget and a commitment was provided to share the net benefits between Government and the racing industry. It?was agreed that 80?per?cent of the additional revenue generated from the POC tax would be provided to Tasracing to support the thoroughbred, harness and greyhound codes of racing in Tasmania through investment in stakes, infrastructure and animal welfare. The POC tax commenced on 1 January 2020.Tasracing Pty Ltd - Borrowing SupportAs part of the COVID-19 social and economic support measures, it was agreed that Tasracing would be reimbursed for interest costs and guarantee fees related to COVID-19 borrowings for a period of six?months. Output Group 4:Miscellaneous4.1 Information and Communication TechnologyThis Output relates to the provision of funding for a number of major Information and Communication Technology projects administered by government departments. This Output includes funding for the Tasmanian Government Radio Network. This Project will lead to a significant improvement in the communication capacity of emergency and other organisations. Further information in relation to this Project can be found in the key deliverables section in chapter 8 of this Budget Paper.4.2 Treasurer’s ReserveThis Output provides funding to meet expenditure that could not reasonably be foreseen at the time of developing the 2020-21?Budget and which is essential for timely and efficient financial management.4.3 MiscellaneousThis Output provides funding for miscellaneous payments including in respect of Government Business Structural Reviews. Funding of $3.1 million has been provided in 2020-21 to provide for costs associated with structural reviews relating to the government business portfolio including expenditure associated with the Vessel Replacement Taskforce.4.4 Payment to Australian Taxation Office: GST AdministrationUnder the Intergovernmental Agreement on Federal Financial Relations, the states and territories compensate the Australian?Taxation Office for the agreed costs incurred in administering the goods and services tax. The states and territories share the GST administration costs on a per?capita basis. This Output reflects Tasmania’s contribution to collection and compliance costs.4.5 Tasmanian Risk Management FundThis Output represents anticipated claim and administration costs for the Tasmanian Risk Management Fund. Claim expenditure estimates for the Fund reflect the most recent actuarial advice.4.6 Fleet Management ServicesAll direct transactions associated with wholeofgovernment light vehicle fleet management activities are recorded in the Government Car Fleet Account within the Public Account. Revenue in the Government?Car?Fleet Account is derived from the sale of vehicles and receipts from the Government’s Fleet Manager of vehicle usage charges, registration and insurance payments by agencies, net of the fleet management fee. Estimated expenses for this Output include motor vehicle registration expenses and estimated depreciation on motor vehicles.4.7 Property Management ServicesProperty Management Services includes building depreciation and rental and other occupancy costs relating to major office accommodation.The Department of Treasury and Finance works with agencies to ensure that all leases are reviewed leading up to expiry to achieve the best use of office space and optimise wholeofgovernment outcomes in relation to more efficient and effective management of the Government’s leased office accommodation. Strategic divestments of the State’s property portfolio proposed by the Government are managed, by Treasury, on a case by case basis.4.8 Infrastructure Investment Project PlanningThe Infrastructure Investment Project Planning Output provides funding of $2?million annually to support the early planning stages of major infrastructure projects including as part of the Structured Infrastructure Investment Review Process.4.9 ExGratia AssistanceUnder section 55 of the Financial Management Act 2016, if the Treasurer is satisfied that it is appropriate to do so because of special circumstances, the Treasurer may authorise an amount to be paid to a person even though the payment would not otherwise be authorised by law or be required to meet a legal liability.Output Group 89:Public Building Maintenance Program89.1 Public Building Maintenance Program This Output includes funding to fast track the maintenance of public buildings in 2020-21 and 2021-22 funded as part of the Government’s social and economic support measures. Further information in relation to the Public Building Maintenance Program can be found in chapter 12 of this Budget Paper.Output Group 90:COVID-19 Response and Recovery90.1 Youth Employment SchemeThis Output provides a targeted payroll tax rebate to eligible small business to encourage the employment of more young people.90.2 Local Government $200 million Interest Free LoansThis Output includes funding assistance in 2020-21 and 2021-22 to Local Government through an interest rebate on borrowings.90.3 COVID-19 ProvisionThis Output provides funding assistance in 2020-21 to meet currently unknown future costs in relation to addressing the impact of the COVID-19 pandemic. 90.4 Small Business Electricity WaiverThe Government, as part of its COVID-19 social and economic measures for small businesses, has provided a waiver of the first quarterly electricity bill or three monthly electricity bills issued to eligible small businesses after 1 April 2020.90.8 Tasmanian HomeBuilder GrantThis Output provides funding in 2020-21 and 2021-22 for eligible owner-occupiers with a grant of $20 000 to build a new home. Capital Investment ProgramTable 4.2 provides financial information for Finance-General’s Capital Investment Program. More information on the Capital Investment Program is provided in chapter?6 of The Budget?Budget Paper?No?1.Table 4.2:Capital Investment ProgramEstimated?202021?202122?202223?202324?Total?Forward?Forward?Forward?Cost?Budget?Estimate?Estimate?Estimate?$'000?$'000?$'000?$'000?$'000?Minister for FinanceDigital Transformation Priority Expenditure ProgramOngoing?12 600?14 900?14 500?15 000?Total CIP Allocations?12 600?14 900?14 500?15 000?Detailed Budget StatementsTable 4.3:Statement of Comprehensive Income - Administered201920?202021?202122?202223?202324?Forward?Forward?Forward?Budget?Budget?Estimate?Estimate?Estimate?$'000?$'000?$'000?$'000?$'000?Administered revenue and other incomeAppropriation revenue - operating1646 905?920 711?751 410?785 056?752 908?Appropriation revenue - capital112 334?5 600?14 900?14 500?15 000?Other revenue from government1....?36 024?....?....?....?Grants23 476 237?3 438 478?3 850 108?4 127 700?4 341 209?Taxation1 095 923?1 099 533?1 169 778?1 207 992?1 240 814?Sales of goods and services3109 408?134 391?140 263?138 471?138 541?Interest418 314?9 400?9 940?11 622?6 875?Dividend, tax and rate equivalent income5524 089?413 131?348 208?295 970?257 378?Other revenue108 664?115 752?114 716?115 631?114 582?Total administered revenue5 991 874?6 173 020?6 399 323?6 696 942?6 867 307?Net gain/(loss) on non-financial assets2 640?3 189?3 169?3 589?3 129?Movement in investments in GBEs and SOCs6(227 627)....?....?....?....?Other gains/(losses) from other economic flows7910?86 315?21 343?(27 752)5 408?Total administered income5 767 797?6 262 524?6 423 835?6 672 779?6 875 844?Administered expensesEmployee benefits8399 954?304 302?244 232?230 547?217 461?Depreciation and amortisation931 915?49 082?48 704?44 593?42 243?Supplies and consumables10118 951?344 125?125 319?123 700?126 976?Grants and subsidies11502 887?704 321?594 326?686 723?789 796?Borrowing costs1212 982?26 930?51 058?60 688?68 958?Transfers to the Public Account5 275 624?6 459 370?6 055 042?5 894 618?6 055 656?Other expenses13(50 000)....?....?....?....?Total administered expenses6 292 313?7 888 130?7 118 681?7 040 869?7 301 090?Administered net result(524 516)(1 625 606)(694 846)(368 090)(425 246)Table 4.3:Statement of Comprehensive Income - Administered (continued)201920?202021?202122?202223?202324?Forward?Forward?Forward?Budget?Budget?Estimate?Estimate?Estimate?$'000?$'000?$'000?$'000?$'000?Administered other comprehensive incomeNet gain/(loss) on revaluation of equity investment14....?(98 811)(94 317)(26 111)25 987?Other movements taken directly to equity15(210 788)(1)(1)(1)(1)Net actuarial gains/(losses) of superannuation defined benefit plans16....?(1 189 625)....?....?....?Total administered other comprehensive income(210 788)(1 288 437)(94 318)(26 112)25 986?Administered comprehensive result(735 304)(2 914 043)(789 164)(394 202)(399 260)Notes:Explanations for significant variances and further information can be found in Table 4.4 Revenue from Appropriation by Output.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.The increase in Sales of goods and services primarily reflects an increase in rental income received due to additional lease contracts that meet the definition of major office accommodation (defined in Treasurer’s Instruction C2 Contracts - Major Office Accommodation Leases) being recognised within FinanceGeneral. These contracts were previously recognised by the tenant agency.The decrease in Interest revenue in 2020-21 primarily reflects a lower interest rate compared to 201920. The decrease in 202324 primarily reflects a lower Specific Purpose Account cash balance.Further information on Dividend, tax and rate equivalent income can be found in chapter 5 of The Budget Budget Paper No 1.The decrease in Movement in investments in GBEs and SOCs reflects a reclassification of the movement to Net gain/(loss) on revaluation of equity investment.Other gains/(losses) from other economic flows reflects the estimated change in deferred tax assets and liabilities held by government businesses.The decrease in the Employee benefits from 2020-21 primarily reflects a decrease in the discount rate used when calculating the State’s superannuation liability and associated expenditure.The increase in Depreciation and amortisation primarily reflects an increase in depreciation expenditure due to additional lease contracts that meet the definition of major office accommodation (defined in Treasurer’s Instruction C2 Contracts - Major Office Accommodation Leases) being recognised within FinanceGeneral. These contracts were previously recognised by the tenant agency.The increase in Supplies and consumables in 2020-21 primarily reflects expenses that have been provisionally allocated to this expenditure category from the $145?million COVID19 provision. For further information on the movement in Grants and subsidies see table 4.5 Administered Expenses.The increase in Borrowing costs from 2020-21 primarily reflects anticipated increases in the estimated General Government Sector cash deficit. The change in Other expenses from 2020-21 reflects Government’s decision to remove agency efficiency dividends from 202021 in response to the COVID19 gain/(loss) on revaluation of equity investment reflects the estimated change in the value of net assets of government businesses, excluding any equity contributions, between 1 July and 30 June each year.Other movements taken directly to equity in 2019-20 reflected the initial application of AASB 15 Revenue from Contracts with Customers.The movement in Net actuarial gains/(losses) of superannuation defined benefit plans reflects the latest valuation of the Superannuation Liability as provided by the State’s Actuary.Table 4.4:Revenue from Appropriation by Output201920?202021?202122?202223?202324?Forward?Forward?Forward?Budget?Budget?Estimate?Estimate?Estimate?$'000?$'000?$'000?$'000?$'000?TreasurerOutput Group 1 - Debt Servicing and Management1.1 Debt Servicing155?21 346?45 635?55 183?63 820?1.2 Interest on Sundry Deposits27 910?1 440?2 140?2 784?3 052?1.3 Debt Management315 050?....?....?....?....?23 015?22 786?47 775?57 967?66 872?Output Group 2 - Employee Related Costs2.3 Provision for 27th Pay7 400?7 400?7 400?7 400?7 400?7 400?7 400?7 400?7 400?7 400?Output Group 3 - Government Businesses3.1 Sustainable Timber Tasmania2 000?2 000?2 000?2 000?2 000?3.2 State Fire Commission12 836?12 596?12 596?12 596?12 596?3.4 Government Businesses490 775?106 122?120 659?135 322?61 201?105 611?120 718?135 255?149 918?75 797?Output Group 4 - Miscellaneous4.2 Treasurer's Reserve510 000?80 000?10 000?10 000?10 000?4.3 Miscellaneous6(12 719)1 680?470?474?474?4.4 Payment to Australian Tax Office: GST Administration13 399?12 803?12 805?12 808?12 808?4.9 ExGratia Assistance7610?6 200?300?300?300?11 290?100 683?23 575?23 582?23 582?Output Group 90 - COVID-19 Response and Recovery90.2 Local Government $200 million Interest Free Loans8....?3 400?6 000?....?....?90.3 COVID-19 Provision9....?136 060?....?....?....?90.8 Tasmanian HomeBuilder Grant10....?10 000?10 000?....?....?....?149 460?16 000?....?....?Grants and Subsidies139 090?125 020?164 355?169 226?186 034?Operating Services Expenditure286 406?526 067?394 360?408 093?359 685?286 406?526 067?394 360?408 093?359 685?Minister for FinanceOutput Group 2 - Employee Related Costs2.1 Superannuation and Pensions350?350?350?350?350?350?350?350?350?350?Table 4.4:Revenue from Appropriation by Output (continued)201920?202021?202122?202223?202324?Forward?Forward?Forward?Budget?Budget?Estimate?Estimate?Estimate?$'000?$'000?$'000?$'000?$'000?Output Group 4 - Miscellaneous4.1 Information and Communication Technology1125 542?12 703?19 024?40 838?48 774?4.7 Property Management Services13 962?11 699?9 683?9 888?10 090?4.8 Infrastructure Investment Project Planning2 000?2 000?2 000?2 000?2 000?41 504?26 402?30 707?52 726?60 864?Output Group 89 - Public Building Maintenance Program89.1 Public Building Maintenance Program12....?50 597?9 450?....?....?....?50 597?9 450?....?....?Output Group 90 - COVID-19 Response and Recovery90.1 Youth Employment Scheme13....?280?....?....?....?....?280?....?....?....?Capital Investment Program12 334?5 600?14 900?14 500?15 000?Operating Services Expenditure41 854?77 629?40 507?53 076?61 214?Capital Services Expenditure12 334?5 600?14 900?14 500?15 000?54 188?83 229?55 407?67 576?76 214?Finance-GeneralTotal Operating Services Expenditure328 260?603 696?434 867?461 169?420 899?Total Capital Services Expenditure12 334?5 600?14 900?14 500?15 000?340 594?609 296?449 767?475 669?435 899?Reserved by LawPayments to Municipalities under the Local Government (Rates and Charges Remissions) Act 199118 432?17 675?17 824?17 974?18 125?Payments under the Public Sector Superannuation Reform (Parliamentary Superannuation) Regulations1 017?1 059?1 038?1 018?999?Superannuation Benefits Payable under the Governor of Tasmania Act 1982122?112?113?114?114?Superannuation Benefits Payable under the Judges' Contributory Pensions Act 19682 086?1 900?1 912?1 920?1 924?Superannuation Benefits Payable under the Public Sector Superannuation Reform Act 2016296 698?295 998?295 383?302 587?310 573?Superannuation Benefits Payable under the Solicitor-General Act 1983290?271?273?274?274?318 645?317 015?316 543?323 887?332 009?Table 4.4:Revenue from Appropriation by Output (continued)201920?202021?202122?202223?202324?Forward?Forward?Forward?Budget?Budget?Estimate?Estimate?Estimate?$'000?$'000?$'000?$'000?$'000?Appropriation Rollover....?36 024?....?....?....?Total Revenue from Appropriation659 239?962 335?766 310?799 556?767 908?Administered Revenue from Appropriation659 239?962 335?766 310?799 556?767 908?659 239?962 335?766 310?799 556?767 908?Notes:The increase in Debt Servicing from 2020-21 primarily reflects anticipated increases in the General Government Sector cash deficit. The variations in Interest on Sundry Deposits are primarily due to variations in the cash balances over the Budget and Forward Estimates and lower interest rates.The decrease in Debt Management from 2020-21 reflects the waiver of debt associated with the Commonwealth State Housing Agreement. The increase in Government Businesses from 2020-21 primarily reflects payment to the Racing Industry of a share of the Point of Consumption Tax.The increase in Treasurer’s Reserve in 2020-21 reflects a one-off funding increase to meet expenditure that could not reasonably be foreseen at the time of developing the 2020-21?Budget, particularly in relation to the COVID-19 pandemic.The increase in Miscellaneous in 2020-21 primarily reflects the Government’s decision to remove agency efficiency dividends from 2020-21 in response to the COVID19 pandemic. The decrease from 2021-22 reflects a decrease in expenditure associated with ongoing Government Business Reviews.The increase in Ex-Gratia Assistance in 2020-21 reflects additional payments to be made under section 55 of the Financial?Management?Act?2016.This represents funding provided to local government by way of an interest rebate on eligible loans as part of the COVID-19 economic and social measures.This represents funding that has been provided to establish a central unallocated funding provision to meet currently unforeseen or uncertain COVID-19 related costs. The full value of the provision is $145?million which includes funding rolled-over from 2019-20 under the provisions of the Financial Management Act 2016.This represents grant funding of $20 000 for home owner-occupiers for eligible new home builds where the contract is signed between 4 June 2020 and 31 December 2020.The decrease in Information and Communication Technology in 2020-21 primarily reflects the current estimated expenditure profile for the Tasmanian Government Radio Network project.This reflects funding provided for the Government’s Public Building Maintenance Program COVID-19 related measure.This reflects funding provided as part of stage one of the Government’s social and economic support package.Table 4.5:Administered Expenses201920?202021?202122?202223?202324?Forward?Forward?Forward?Budget?Budget?Estimate?Estimate?Estimate?$'000?$'000?$'000?$'000?$'000?Grants and SubsidiesEnergy Retailer Concession44 899?43 003?43 371?43 744?44 117?First Home Builder Assistance112 720?16 020?12 480?7 860?3 360?Local Government: Grants244 317?43 277?91 168?101 693?126 076?Management of Australian Government Funding3302 517?457 935?351 680?460 779?542 270?Natural Disaster Relief Scheme413 919?10 581?532?532?532?Other Grants and Subsidies59 034?2 285?34?34?34?Payments under Local Government (Rates and Charges Remissions) Act 199118 432?17 675?17 824?17 974?18 125?Payroll Tax Assistance64 817?4 849?7 665?6 056?2 401?TT-Line Pensioner Concession Subsidy312?226?342?342?342?Water and Sewerage Concessions and Subsidies9 100?8 593?8 791?8 993?9 200?460 067?604 444?533 887?648 007?746 457?Transfer to the Public Account5 275 624?6 459 370?6 055 042?5 894 618?6 055 656?Other Administered Expenses556 622?824 316?529 752?498 244?498 977?Total Administered Expenses6 292 313?7 888 130?7 118 681?7 040 869?7 301 090?Notes:The increase in 2020-21 primarily reflects funding provided under the Homebuilder Grant.The increase in 2021-22 reflects that an advance payment was made for the 2020-21 entitlement in 2019-20. The variation in Management of Australian Government Funding is primarily related to cash flows for grant funding from the Australian Government.The decrease in the Natural Disaster Relief Scheme primarily reflects the finalisation of costs associated with the June 2016 flood event and revised expenditure associated with the May 2018 extreme weather event.The decrease in Other Grants and Subsidies in 2020-21 primarily reflects a reduction in expenditure associated with Energy Rebates for Business. The decrease from 2021-22 reflects the cessation of funding for Energy Rebates for Business and Copper Mines of Tasmania.The increase in Payroll Tax Assistance in 2021-22 is primarily related to cash flows associated with the targeted Payroll Tax Rebate for apprentices, trainees and youth employees scheme.Energy Retailer ConcessionIn accordance with the Electricity Supply Industry Act?1995, the Government entered into a Community?Service?Obligation?Agreement with authorised electricity retailers to provide a range of concessions to eligible low income households and pensioners and those requiring specified life support equipment to assist them in meeting the costs of electricity. The decrease in the Electricity Retailer Concession in 2020-21 reflects the decision by the Government to cap electricity prices for all regulated electricity customers as part of its social and economic support measures. There has been no change in electricity concessions rates for 2020-21 as regulated electricity prices decreased on 1 July 2020. The increase over the Forward?Estimates period reflects the historical average concession growth rate.First Home Builder AssistanceThe Government has extended the First Home Owner Grant of $20?000 until 30 June 2022, which is expected to support ongoing demand for newly constructed homes by first home buyers. Local Government GrantsLocal Government Grants includes funding under the Australian Local Government (Financial Assistance) Act?1995, whereby the Australian Government provides funds to the states for distribution as general purpose grants to local government. This funding includes general purpose funding and identified local road funding.Natural Disaster Relief SchemeA Tasmanian Natural Disaster Relief Scheme, administered by the Department of Premier and Cabinet, is funded within FinanceGeneral. This Scheme provides for payments to local government authorities for the eligible costs of restoring or replacing essential public assets, which have been damaged as a direct result of a disaster, to a predisaster standard. Disasters for which relief is available are determined at the national level and include any one of, or a combination of, the following natural hazards: bushfire; earthquake; flood; storm; cyclone; storm surge; landslide; tsunami; meteorite strike or tornado.Other Grants and SubsidiesFunding of $2.3?million has been included for Other Grants and Subsidies in the 202021?Budget. This includes $1.9?million for Copper Mines of Tasmania and minor expenses relating to the Rosetta and Berriedale landslip accounts.Payments under Local Government (Rates and Charges Remissions) Act?1991In accordance with the provisions of the Local Government (Rates and Charges Remissions) Act?1991, the pensioner rates remission scheme provides a concession of 30?per?cent off council rates and charges, up to a defined maximum annual amount for eligible pensioners. The maximum concession is indexed annually to ensure that rate relief increases in line with inflation.Payroll Tax AssistancePayroll Tax Rebate (Trainees, Apprentices and Youth)The Payroll Tax Rebate for apprentices, trainees and youth employees provides a payroll tax rebate for two?years from the date that apprentices and trainees are employed, and one year from the date that youth employees are employed, where they were employed between 1 July 2017 and 30?June?2019.A targeted Payroll Tax Rebate will continue for new apprentices and trainees employed in specific industries between 1 July 2019 and 31 December 2020. A broader Payroll Tax Rebate will be available for new apprentices and trainees employed in all industries between 1?January?2021 and 30?June?2022.A Payroll Tax Rebate will also continue for new youth employees (persons aged 24?years and under) employed between 1?April?2020 and 30 June 2022. Expenditure is consistent over 2020-21 to 2021-22 reflecting extended eligibility requirements. Expenditure will gradually decrease from 2021-22 reflecting the time-limited rebate for eligible employees.Qantas Airways LimitedThe Government is continuing its financial assistance package to Qantas, including payroll tax reimbursement of up to $1?million per annum for 10 years from 201415, ending with a final reimbursement of up to $250?000 in 202425. Funding is limited to the sum of $1?million in any one financial year or the amount of payroll tax paid in that year, whichever is the lesser sum. This payroll tax relief is part of a broader agreement with Qantas to secure existing Qantas Contact Centre positions and, through the consolidation of Australiawide operations, provides for employment at the Hobart Contact Centre.TT-Line Pensioner Concession SubsidyThe Government provides a subsidy to TT-Line Company Pty Ltd for the additional cost of providing concession arrangements to pensioners following an extension by the Australian Government, from 1?April?1993, of eligibility for the Pensioner Concession Card.Water and Sewerage Concessions and SubsidiesUnder the Water and Sewerage Industry (Community Service Obligation) Act?2009, concessions are made available to eligible low income households and pensioners to assist them in meeting the cost of services provided by the Tasmanian Water and Sewerage Pty Ltd. Payments are made to TasWater which passes the benefit onto eligible concession card holders as lower service charges. Table 4.6:Statement of Financial Position as at 30?June - Administered2020?2021?2022?2023?2024?Forward?Forward?Forward?Budget?Budget?Estimate?Estimate?Estimate?$'000?$'000?$'000?$'000?$'000?AssetsFinancial assetsCash and deposits11 025 395?1 121 016?1 132 409?925 661?937 639?Investments2248 648?206 969?208 669?1 890?1 420?Receivables99 290?104 460?104 460?104 460?104 460?Equity investments35 491 493?4 811 764?4 899 358?5 282 020?5 390 118?Other financial assets4798 148?525 692?557 203?546 583?568 975?7 662 974?6 769 901?6 902 099?6 860 614?7 002 612?Non-financial assetsAssets held for sale1 181?791?791?791?791?Property, plant and equipment143 765?141 970?141 776?141 962?140 856?Infrastructure31 888?37 368?52 268?66 768?81 768?Other assets5154 611?221 535?202 553?206 139?215 860?331 445?401 664?397 388?415 660?439 275?Total assets7 994 419?7 171 565?7 299 487?7 276 274?7 441 887?LiabilitiesPayables10 829?10 815?10 595?10 611?10 372?Interest bearing liabilities61 779 415?3 575 821?4 566 258?5 040 291?5 705 919?Superannuation77 007 790?11 461 430?11 406 793?11 331 277?11 234 704?Other liabilities326 574?397 561?379 067?351 523?347 580?Total liabilities9 124 608?15 445 627?16 362 713?16 733 702?17 298 575?Net assets (liabilities)(1 130 189)(8 274 062)(9 063 226)(9 457 428)(9 856 688)EquityReserves27 010?(323 355)(323 355)(323 355)(323 355)Other reserves....?(56 220)(150 537)(176 648)(150 661)Accumulated funds(1 157 199)(7 894 487)(8 589 334)(8 957 425)(9 382 672)Total equity(1 130 189)(8 274 062)(9 063 226)(9 457 428)(9 856 688)Notes:The decrease in Cash and deposits from 2022 primarily reflects lower Specific Purpose Account cash balances.The decrease in Investments in 2023 reflects the expected drawdown of the TT-Line Vessel Replacement Fund.The movements in Equity investments primarily reflects the estimated change in the value of net assets of government businesses, excluding any equity contributions, between 1 July and 30 June each year.The decrease in Other financial assets in 2020-21 represents the estimated movement of deferred tax assets and liabilities held by government businesses.The increase in Other assets primarily reflects additional lease contracts that meet the definition of major office accommodation (defined in Treasurer’s Instruction C2 Contracts??Major Office Accommodation Leases) being recognised within FinanceGeneral. These contracts were previously recognised by the tenant agency.The increase in Interest bearing liabilities reflects the anticipated increase in the General Government Sector cash deficit.The increase in Superannuation primarily reflects the latest advice provided by the State’s Actuary. The primary reason for the increase is due to a decrease in the discount rate from 4.25 per cent to 1.0 per cent. Further information is included in chapter?7 of The Budget Budget Paper No. 1.Table 4.7:Statement of Cash Flows - Administered201920?202021?202122?202223?202324?Forward?Forward?Forward?Budget?Budget?Estimate?Estimate?Estimate?$'000?$'000?$'000?$'000?$'000?Cash flows from operating activitiesCash inflowsAppropriation receipts - operating646 905?920 711?751 410?785 056?752 908?Appropriation receipts - capital12 334?5 600?14 900?14 500?15 000?Appropriation receipts - other....?36 024?....?....?....?Grants3 341 607?3 354 792?3 824 702?4 093 244?4 330 354?Taxation1 095 954?1 100 155?1 169 735?1 208 088?1 241 034?Sales of goods and services109 408?134 391?140 263?138 471?138 541?GST receipts13 500?13 500?13 500?13 500?13 500?Interest received18 682?8 472?10 241?10 803?6 845?Dividends received511 539?414 432?344 442?286 221?246 864?Other cash receipts108 664?115 752?114 716?115 631?114 582?Total cash inflows5 858 593?6 103 829?6 383 909?6 665 514?6 859 628?Cash outflowsEmployee benefits(30 000)....?....?....?....?Superannuation(300 363)(299 490)(298 869)(306 063)(314 034)Borrowing costs(13 008)(26 938)(51 026)(60 420)(68 945)GST payments(13 500)(13 500)(13 500)(13 500)(13 500)Grants and subsidies(502 887)(704 321)(594 326)(686 723)(789 796)Transfer to the Public Account(5 275 624)(6 459 370)(6 055 042)(5 894 618)(6 055 656)Supplies and consumables(118 951)(344 125)(125 319)(123 700)(126 976)Other cash payments50 000?....?....?....?....?Total cash outflows(6 204 333)(7 847 744)(7 138 082)(7 085 024)(7 368 907)Net cash from (used by) operating activities(345 740)(1 743 915)(754 173)(419 510)(509 279)Cash flows from investing activitiesPayments for acquisition of non-financial assets(45 371)(50 047)(48 692)(49 090)(48 716)Proceeds from the disposal of non-financial assets42 381?17 430?17 410?17 830?17 370?Equity injections and cash flows from restructuring(111 395)(66 676)(181 911)(408 773)(82 111)Net advances paid8 487?(857)(3 039)(21 254)(24 753)Net receipts/(payments) for investments(54 927)(121 596)(2 170)206 309?....?Net cash from (used by) investing activities(160 825)(221 746)(218 402)(254 978)(138 210)Table 4.7:Statement of Cash Flows - Administered (continued)201920?202021?202122?202223?202324?Forward?Forward?Forward?Budget?Budget?Estimate?Estimate?Estimate?$'000?$'000?$'000?$'000?$'000?Cash flows from financing activitiesNet borrowings336 642?1 987 306?983 968?467 740?659 467?Net cash from (used by) financing activities336 642?1 987 306?983 968?467 740?659 467?Net increase (decrease) in cash and cash equivalents held(169 923)21 645?11 393?(206 748)11 978?Cash and deposits at the beginning of the reporting period1 195 318?1 099 371?1 121 016?1 132 409?925 661?Cash and deposits at the end of the reporting period1 025 395?1 121 016?1 132 409?925 661?937 639? ................
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