2019-20 Budget Paper 2 - Department of Treasury and Finance



12Department of Treasury and FinanceAgency OutlineThe Department of Treasury and Finance is responsible to the Treasurer, Hon Peter Gutwein MP.Treasury has responsibility for implementing strategies to achieve the Government’s economic and fiscal objectives. It provides the Government with objective advice on the economic and financial management of the State, implements Government policy and performs financial analysis, monitoring and reporting functions on behalf of the Government.Treasury undertakes various activities associated with State economic and financial management, including:monitoring and analysing trends in economic conditions and forecasting economic parameters for Tasmania;preparing and monitoring the State Budget, managing the Public Account and providing advice on financial and resource management in the public sector taking into account the Government’s strategies and priorities;monitoring and providing advice on the performance and management of government businesses;managing the Government’s office accommodation portfolio, managing insurable risks of agencies, managing property sales and wholeofgovernment procurement;providing policy advice on regulatory and financial issues, intergovernmental financial relations and State?taxation issues and State taxation collection on behalf of the Commissioner of State Revenue; andsupporting the Tasmanian Economic Regulator, the State Grants Commission, the Tasmanian?Liquor and?Gaming Commission, the Commissioner for Licensing, the Commissioner of State Revenue and the Superannuation Commission to carry out their statutory, regulatory and integrity functions.This chapter provides the Department’s financial information for 201920 and over the Forward Estimates period (2020-21?to?2022-23). Further information on the Department is provided at treasury..au.Key DeliverablesTable?12.1 provides a summary of the Budget and Forward Estimates allocations for key deliverables within the Department.Table 12.1:Key Deliverables Statement2019-20Budget2020-21 Forward Estimate 2021-22Forward Estimate 2022-23Forward Estimate $'000 $'000 $'000 $'000 Commonwealth Grants Commission 2020 Methodology Review 330............Energy Markets Review779804........Energy on Farms12 0002 000........Extension of Energy Rebate Scheme15 500............Financial Management Act Implementation246............Future Gaming Market Implementation605608........Kirksway Place Relocation3007 100600....Metro Tasmania - Derwent River Ferry Service1500500500....Metro Tasmania - Single Ticket Scheme13 5003 500250250Tasmanian Irrigation Contribution - Tranche 315 00015 00025 00025 000TasRail Contribution - Tranche 2 and 3129 900....44 950 52 950TasRail Contribution - Parattah Rail Siding1575............TasWater Contribution120 00050 00050 00060 000Treasury Building Divestment351365377....Note:These Key Deliverables will be funded through Finance-monwealth Grants Commission 2020 Methodology ReviewThe Goods and Services Tax is distributed to the states and territories on the basis of Horizontal Fiscal Equalisation, which is administered by the Commonwealth Grants Commission. Every five years, the CGC conducts a comprehensive review of its methodology. Changes in the CGC’s methodology have the potential to reallocate millions of dollars of GST between jurisdictions. The opportunity to actively participate in the review is critically important for the State, with GST being the largest single revenue source for Tasmania, providing 38.6?per?cent of Tasmania’s revenue in 2019-20. The 2020?Methodology Review is wide ranging and resource intensive. In order to minimise the risks to Tasmania from any changes to the distribution methodology, a dedicated project team has been established in Treasury to respond to the 2020 Methodology Review. The Methodology Review will be completed by February?2020.Energy Markets Review The Government is committed to delivering the lowest regulated electricity prices in the nation by 2022. As part of the Government’s overall strategy in regard to energy pricing, Treasury will be progressing the delinking of the Tasmanian regulated wholesale electricity pricing mechanism from volatility in the Victorian wholesale market. Treasury is also assisting with the development and assessment of the Project Marinus and Battery of the Nation Projects.Energy on FarmsEquity contributions of $2 million have been allocated to Tasmanian Irrigation Pty Ltd in 2019-20 and 202021 to construct mini and micro hydro-electric systems as part of the irrigation system network.Extension of Energy Rebate SchemeThe Government is extending the Energy Rebate Scheme for large unregulated electricity customers into 201920. The aim of the Scheme is to cushion customers from the impact of continuing high wholesale electricity prices in the National Electricity Market.Financial Management Act ImplementationThe Financial Management Act 2016 will commence on 1 July 2019. On that date, the FMA will replace the existing Financial?Management?and?Audit?Act?1990 and the Public?Account?Act?1986 and represents the final step in a major reform to Tasmania’s financial management framework. The implementation of the FMA has been a significant Treasury-led project across Government, involving engagement and education for a large and diverse range of stakeholders. Work delivered through the Project to date has focussed on the development of the operational framework to support the new legislation including new policies, processes, supporting documentation and system changes. During 2019-20, Treasury will undertake the first full year implementation of the new framework, monitor the implementation and finalise outstanding implementation issues, identify any further process or system improvements and continue to engage with stakeholders. Future Gaming Market Implementation Under the Government’s Future Gaming policy, the Deed between the State and the Federal Group to conduct casino operations, operate electronic gaming machines and conduct games of Keno in Tasmania will end on 30?June?2023. Post 2023, the Government policy is for electronic gaming machines in hotels and clubs to be operated under an individual venue licensing model, with the legislative amendments to provide for its policy to be ready for tabling by March 2020.Treasury is responsible for:providing advice to Government in relation to the implementation of its policy position, including issues relating to casino licence negotiations and individual venue licensing models; andcompleting required legislative amendments to the Gaming Control Act 1993 to provide for the policy position.A project team was established within Treasury in July 2018 and work to date has focussed on developing a financial model and regulatory aspects of the future gaming market and early stakeholder engagement. Future objectives include targeted consultation on both the financial and regulatory issues, development and passage of legislation, including to cease the Deed, and design of the implementation plan for stage 2 of the Project, including a public tender process for the rights to operate the gaming machine monitoring network in hotels and clubs.Kirksway Place RelocationRelated to the Treasury Building Divestment, this Project will facilitate the relocation of the Department?of?Treasury and Finance, including staff, assets and operations from the Treasury Building at 21?Murray Street, Hobart to 21 Kirksway Place, Battery?Point. The Project aims to:move approximately 210 staff from the Treasury Building to 21 Kirksway Place;undertake the redevelopment, improvement and fit out of approximately 3?300 square metres (spread over multiple floors) to provide for a modern and flexible work environment; andprovide for a vacant Treasury Building complex that is fit for divestment and repurposing.Metro Tasmania - Derwent River Ferry ServiceEquity contributions totalling $1.5 million over three years will be provided to Metro Tasmania Pty Ltd to support the establishment of a Derwent River ferry service.Metro Tasmania - Single Ticket SchemeFunding totalling $7.5?million over the Budget and Forward Estimates is being provided to assist Metro?Tasmania?Pty?Ltd with the upgrades required to its systems and infrastructure, as part of the introduction of a common ticketing system for all Tasmanian public passenger transport services, allowing passengers to use a range of passenger transport systems on a single ticket.Tasmanian Irrigation Contribution - Tranche 3As part of the Government’s Tranche 3 Irrigation - taking agriculture to the next level election policy, $70?million has been allocated to a third tranche of irrigation schemes over the Budget and Forward Estimates period. A commitment has also been made by the Australian Government to allocate $100 million towards Tranche 3 as part of the National Water Infrastructure Development Fund.TasRail Contribution - Tranche 2 and 3Equity contributions of $29.9?million in 2019-20, $45 million in 2021-22 and $53 million in 2022-23 will be provided to Tasmanian Railway Pty Ltd for the rail revitalisation project across the State, including replacing life-expired assets, strengthening culverts and other upgrades to rail lines and bridges. The funding will support the second and third tranche of the Tasmanian Freight Rail Revitalisation Program, with the State receiving matching funding from the Australian?Government.TasRail Contribution - Parattah Rail SidingAn equity contribution of $575?000 will also be made in 2019-20 to assist TasRail to fund infrastructure works at the Parattah rail siding.TasWater ContributionFunding totalling $300 million will be provided to TasWater over?10 years from 2018-19, with an initial contribution of $20 million made in January 2019. This funding will allow TasWater to implement its accelerated infrastructure program, as well as providing funding for major infrastructure projects including the relocation of the Macquarie Point wastewater treatment plant, the Launceston combined sewerage and stormwater system improvements and the Freycinet Peninsula wastewater system. Funding of $180 million will be provided to TasWater over the 2019-20 Budget?and Forward Estimates period.?Treasury Building DivestmentAs announced in the 2018-19 State Budget, the Government intends to seek proposals through a multistaged open expression of interest process for the divestment of the Treasury Building Complex located at 21?Murray Street, Hobart. The process to be undertaken will be similar to the divestment of parliament?square. The Government is committed to ensuring appropriate and open community consultation occurs across the divestment process. The divestment of the Treasury Building Complex is being progressed in a structured and considered manner to ensure that the eventual outcome of the site meets the expectations of the Government and the community. On this basis, it is currently intended to progress the divestment through a three stage process incorporating an initial Registration of Interest phase, Expression of Interest phase and, finally, a detailed Request for Tender phase. The initial ROI phase is expected to be released during JuneJuly?2019. Output InformationOutputs of the Department of Treasury and Finance are provided under the following Output Groups:Output Group 1 - Financial and Resource Management Services;Output Group 2 - Economic and Fiscal Policy Advice;Output Group 3 - Revenue, Superannuation and Regulatory Management Services; andOutput Group 4 - Community Assistance.Table 12.2 provides an Output Group Expense Summary for the Department.Table 12.2:Output Group Expense Summary2018-19?2019-20?2020-21?2021-22?2022-23?Forward?Forward?Forward?Budget?Budget?Estimate?Estimate?Estimate?$'000?$'000?$'000?$'000?$'000?TreasurerOutput Group 1 - Financial and Resource Management Services1.1 Budget Development and Management12 787?3 177?3 012?3 182?3 296?1.2 Financial Management and Accounting Services3 899?3 823?3 910?4 115?4 240?1.3 Shareholder Advice on Government Businesses23 085?2 986?3 089?2 818?2 913?1.4 Government Property and Accommodation Services31 475?1 911?1 936?2 057?2 012?1.5 Government Procurement Services2 670?2 805?2 865?2 937?3 004?13 916?14 702?14 812?15 109?15 465?Output Group 2 - Economic and Fiscal Policy Advice2.1 Economic Policy Advice1 413?1 356?1 395?1 468?1 516?2.2 Regulatory Policy3 066?2 895?2 962?3 117?3 212?2.3 Intergovernmental Financial Matters41 719?1 473?1 321?1 399?1 446?6 198?5 724?5 678?5 984?6 174?Output Group 3 - Revenue, Superannuation and Regulatory Management Services3.1 Tax Administration and Revenue Collection9 330?9 341?9 552?9 952?10 290?3.2 Regulation and Administration of Liquor and Gaming7 227?7 427?7 632?7 403?7 643?3.3 Economic Regulation51 944?2 083?2 296?2 128?2 223?3.4 Office of the Superannuation Commission14 569?14 194?14 351?14 589?15 077?33 070?33 045?33 831?34 072?35 233?Output Group 4 - Community Assistance4.1 Bass Strait Islands Community Service Obligation610 240?....?....?....?....?4.2 Public Trustee Community Service Obligation2 068?2 115?2 162?2 210?2 259?4.3 Community Support Levy3 983?4 324?4 212?3 737?4 226?16 291?6 439?6 374?5 947?6 485?TOTAL69 475?59 910?60 695?61 112?63 357?Notes:The increase in Budget Development and Management in 2019-20 is due to the allocation of resources to finalise the implementation of the Financial Management Act.The decrease in Shareholder Advice on Government Businesses in 2021-22 is due to the finalisation of the Energy?Markets?Review?funding.The increase in Government Property and Accommodation Services from 2019-20 is due to the allocation of additional resources including the establishment of a dedicated project team for the Treasury Building Divestment Project.The decrease in Intergovernmental Financial Matters from 2019-20 is due to the finalisation of the Commonwealth?Grants?Commission 2020 Methodology Review Project.The variation in expenditure on Economic Regulation reflects the work program of the Tasmanian Economic Regulator. Water?and sewerage pricing investigations are being undertaken in 2020-21.The cessation of funding for the Bass Strait Islands Community Service Obligation from 2019-20 is due to the transfer of financial responsibility for the obligation back to Hydro?Tasmania from 1 July 2019.Output Group 1:Financial and Resource Management Services1.1 Budget Development and ManagementThis Output includes management of the State Budget process, the provision of advice on budgetary issues and monitoring of the State’s financial performance against the Government’s Fiscal Strategy.1.2 Financial Management and Accounting ServicesThis Output includes wholeofgovernment financial management activities and the provision of advice on financial management and reform, consistent with the Government’s strategies and priorities. It supports a range of services relating to the management of financial assets and liabilities, associated risk mitigation strategies and the preparation of wholeofgovernment financial and statistical reports. 1.3 Shareholder Advice on Government BusinessesThis Output includes monitoring and provision of advice on government businesses. It supports the provision of advice on reforms and policies relating to the Government’s ownership of businesses. Submissions and presentations to the credit rating agencies are included in this Output.1.4 Government Property and Accommodation ServicesThis Output covers the administration of, and provision of advice in relation to, Government property and office accommodation services, including the management of governmentowned and leased office buildings and the disposal of surplus Crown property.1.5 Government Procurement ServicesThis Output includes the provision of advice in relation to Government procurement activities and the administration of wholeofgovernment contracts and the Tasmanian Risk Management Fund.Table 12.3:Performance Information - Output Group 1Performance MeasureUnit of Measure201617Actual201718Actual201819Target201920TargetStakeholder satisfaction rating (expressed as a percentage)1%na85na>90Proportion of financial reports receiving an unqualified audit opinion2%100100100100Treasurymanaged property vacancy rate3%2.61.4<1.5<1.5State Service workers’ compensation contributions as a percentage of the average premium charged by private insurers4%9091<90<90Proportion of financial reports published by the required date5%100100100100Variance between Budget estimate and actual GBE/SOC returns6%14.13.3<5.0<5.0Notes:The satisfaction rating of the quality of Treasury's services is obtained from the results of Treasury's Stakeholder Survey, which is completed approximately every two years. Treasury’s Stakeholder Survey was most recently completed in August 2018 for 2017-18.An unqualified audit opinion from the Auditor-General indicates that the financial reports are a true and accurate reflection of the Government's finances. The vacancy rate is the proportion of all owned and leased office space managed by Treasury that is currently vacant and available for occupation. The Tasmanian Risk Management Fund includes a self-insurance scheme for the workers’ compensation liabilities of participating agencies. An indication of the Government’s management of workers’ compensation claims can be obtained by comparing the workers’ compensation contributions paid by agencies to the Fund with the workers’ compensation premiums charged by private insurers. The Fund’s performance against the indicator in 2017-18 worsened from the previous year primarily due to an increase in the Fund’s contribution rate.The whole-of-government financial reports published in 201718 were the Preliminary Outcomes Report?2016-17, Treasurer's?Annual Financial Report 201617, September Quarterly Report 201718, December Quarterly Report?201718 and the March Quarterly Report 2017-18.Returns from government businesses and state-owned companies comprise dividends, income tax equivalent payments, rate equivalent payments and guarantee fees. The positive variance to the Budget estimates is largely due to increased income tax equivalent payments.Output Group 2:Economic and Fiscal Policy Advice2.1 Economic Policy AdviceThis Output relates to the provision of advice on international, national and Tasmanian economic conditions and developments and forecasting economic trends in the Tasmanian economy. It also includes the provision of advice on economic policy and reform issues, Council of Australian Governments and other national economic policy initiatives.2.2 Regulatory PolicyThis Output includes the provision of advice relating to the regulation and taxation of gaming activities and regulation and licensing of liquor sales, State revenue policy and the legislative review program.2.3 Intergovernmental Financial MattersThis Output relates to the provision of advice on all intergovernmental financial matters, including support to the State Grants Commission.Table 12.4:Performance Information - Output Group 2Performance MeasureUnit of Measure201617Actual201718Actual201819Target201920TargetStakeholder satisfaction rating (expressed as a percentage)1%na92na>90Variance between Budget estimate and actual taxation receipts2%4.52.8<5.0<5.0Variance between Budget estimate and actual Australian?Government payments3%20.23.5<5.0<5.0Variance between Budget forecast and ABS estimate of Gross State Product growth4% pts0.70.8<1.0<1.0Variance between Budget forecast and ABS estimate of employment growth4% pts0.3 1.8<1.0<1.0Notes:The satisfaction rating of the quality of Treasury's services is obtained from the results of Treasury's Stakeholder Survey, which is completed approximately every two years. Treasury’s Stakeholder Survey was most recently completed in August 2018 for 2017-18.The accuracy of the Department’s taxation receipt forecasts is determined by comparing the Budget with the actual end of year outcome. The information published in Treasury’s 2017-18 Annual Report was based on the preliminary outcome and has been updated to reflect the final audited outcome.The accuracy of the Department’s Australian Government payments is determined by comparing the State Budget estimate in the financial year with actual payment advices received from the Australian Government. The information published in Treasury's 2017-18 Annual Report was based on the preliminary outcome and has been updated to reflect the final audited outcome.The accuracy of Treasury’s Gross State Product and employment growth forecasts is determined by comparing the Budget forecasts with the most recent estimates of growth for the financial year published by the Australian Bureau of Statistics. Each November, the ABS revises its estimates of growth for past financial years, resulting in the 2016-17 Actual for variance to GSP and employment growth changing from 1.1 to 0.7, and from nil to 0.3 respectively. The information published in Treasury's?201718 Annual Report was based on the preliminary outcome and has been updated to reflect the final outcome.Output Group 3:Revenue, Superannuation and Regulatory Management Services3.1 Tax Administration and Revenue CollectionThis Output comprises the administration of taxation legislation and the collection of State taxation, including monitoring the compliance of taxpayers with State revenue legislation. It also includes the administration of various grants, subsidies and concessions to the Tasmanian community.3.2 Regulation and Administration of Liquor and GamingThis Output provides for the regulation and control of liquor licensing, casino gaming, gaming machines, internet gaming, Keno, minor gaming, betting exchanges and totalizators. It includes the provision of support to the Commissioner for Licensing in discharging the Commissioner’s statutory functions under the Liquor?Licensing Act 1990 and the Tasmanian Liquor and Gaming Commission in the discharge of its statutory functions under the Liquor?Licensing and Gaming Control Acts. 3.3 Economic RegulationThis Output comprises provision of support to the Tasmanian Economic Regulator in the exercise of its statutory functions, which includes the regulation of some activities within the State’s electricity and gas supply industries, economic regulation of the State’s water and sewerage industry, undertaking pricing inquiries at the request of the Government and competitive neutrality investigations.3.4 Office of the Superannuation CommissionThis Output comprises provision of support to the Superannuation Commission in undertaking statutory functions under the Public Sector Superannuation Reform Act?2016; the Public Sector Superannuation Reform?Regulations?2017; and the Public Sector Superannuation Reform (Parliamentary Superannuation) Regulations?2016. Under the public sector superannuation reforms, the operating costs of administering the five public sector defined benefit schemes are funded directly by appropriation to Treasury, rather than through operating expenses being charged directly against scheme assets. Table 12.5:Performance Information - Output Group 3Performance MeasureUnit of Measure201617Actual201718Actual201819Target201920TargetStakeholder satisfaction rating (expressed as a percentage)1%na88na>90Total overdue taxation debt as a percentage of total taxation revenue2%1.01.1<0.8<0.8Percentage of formal recommendations accepted by the Tasmanian Liquor and Gaming Commission3%8698>80>80Percentage of objections in which the Commissioner of State Revenue’s assessment or decision was confirmed4%6568>80>80Revenue Branch operating expenses as a percentage of taxation revenue5%0.90.8<1.5<1.5Percentage of liquor applications submitted to the Commissioner for Licensing within 40?days of advertising6%10091>95>95Number of member complaints received by the Superannuation Commission7Number550<50<50Notes:The satisfaction rating of the quality of Treasury's services is obtained from the results of Treasury's Stakeholder Survey, which is completed approximately every two years. Treasury’s Stakeholder Survey was most recently completed in August 2018 for 2017-18.The State Revenue Office seeks to ensure that taxpayers are well informed of their obligations and that tax debt stress and overdue taxation debts are minimised. Accordingly, the target is for overdue taxation debt to be a very small percentage of total taxation revenue. While recognising that the Tasmanian Liquor and Gaming Commission is an independent statutory body, a measure of the quality of the services provided is the proportion of all formal recommendations contained in decision papers that are accepted by the Commission. Objections may be lodged against assessments issued to taxpayers or decisions of the Commissioner, Deputy Commissioner or a delegate of the Commissioner. Treasury seeks to ensure that the original assessments and decisions are accurate. The information published in Treasury’s 2017-18 Annual Report has been updated to reflect the final outcome.An indication of the efficiency of the revenue management services provided by Treasury can be gained by comparing total taxation revenue collected with the operating costs required to administer and collect that revenue. Treasury assisted the Commissioner for Licensing by receiving applications for licences, undertaking investigations and providing information to the Commissioner for determining whether to grant a liquor licence in accordance with the requirements of the Liquor Licensing Act.The Superannuation Commission has a structured and formal complaint mechanism, for which there is no charge to members (details are available at .au).? External disputes of handling of complaints are addressed by the Tasmanian?Ombudsman. As the Superannuation Commission was established on 1 April 2017, the number of complaints for 2016-17 is for the period 1 April to 30 June 2017.Output Group 4:Community Assistance4.1 Bass Strait Islands Community Service ObligationThis Output comprises the payment of the Bass Strait Islands Community Service Obligation to Hydro?Tasmania relating to the subsidised supply of electricity and pensioner concessions to electricity customers on King and Flinders Islands. The financial responsibility for this obligation will transfer back to Hydro?Tasmania from 1 July 2019.4.2 Public Trustee Community Service Obligation This Output comprises the payment of the Community Service Obligation to the Public Trustee relating to the provision of trustee services to clients with low asset values.4.3 Community Support LevyThis Output comprises the collection and disbursement of funds from the Community Support Levy.Capital Investment ProgramTable 12.6 provides financial information for the Department’s Capital Investment Program. More information on the Capital Investment Program is provided in chapter?6 of The Budget, Budget Paper?No?1.Table 12.6:Capital Investment ProgramEstimated?2019-20?2020-21?2021-22?2022-23?Total?Forward?Forward?Forward?Cost?Budget?Estimate?Estimate?Estimate?$'000?$'000?$'000?$'000?$'000?TreasurerBudget Information Management System Project7?517?1 302?....?....?....?Total CIP Allocations?1 302?....?....?....?Budget Information Management System ProjectThe Budget Information Management System is a business critical system which supports all Government agencies to develop and manage the State Budget. During 2018-19, project work focussed on embedding the core functionality of the new system and its associated business processes, and on delivering a range of high priority reporting features and system changes to support Budget management, the new requirements of the Financial Management Act and changes in accounting standards. To realise the full benefit of the system, improve usability and make further productivity gains, an additional set of system changes and enhancements will be delivered in 2019-20. These include an additional range of reports, the development of dashboard?technology and new business intelligence functions that will support the production of Annual?Budget Papers, Revised?Estimates?Reports and other statutory reports, and the provision of budget monitoring and development advice to the Treasurer.The BIMS Project represented the first stage of a program to replace Treasury’s aging Budget Management and Financial Reporting System. A new project will now be undertaken to replace the remaining Public?Account Reporting System and the Public Account Cash Management System modules of this system. Both systems, in their current format, are not sustainable, particularly given the aging technology base of the systems. The PARS and PACMS Project will deliver contemporary systems that are capable of supporting the reporting and cash management functions of Government and deliver other benefits associated with their integration with the new BIMS.Detailed Budget StatementsTable 12.7:Statement of Comprehensive Income2018-19?2019-20?2020-21?2021-22?2022-23?Forward?Forward?Forward?Budget?Budget?Estimate?Estimate?Estimate?$'000?$'000?$'000?$'000?$'000?Revenue and other income from transactionsAppropriation revenue - operating158 547?48 531?49 157?50 221?51 068?Appropriation revenue - capital21 500?1 302?....?....?....?Fees and fines8 625?8 659?8 840?8 683?8 672?Other revenue31 861?1 408?7 064?1 981?1 400?Total revenue and other income from transactions70 533?59 900?65 061?60 885?61 140?Expenses from transactionsEmployee benefits34 983?35 469?36 181?37 498?38 476?Depreciation and amortisation1 132?1 401?1 549?1 444?2 155?Supplies and consumables9 408?9 364?9 252?8 480?8 993?Grants and subsidies116 193?5 831?5 866?5 839?5 877?Other expenses7 759?7 845?7 847?7 851?7 856?Total expenses from transactions69 475?59 910?60 695?61 112?63 357?Net result from transactions (net operating balance)1 058?(10)4 366?(227)(2 217)Net result1 058?(10)4 366?(227)(2 217)Comprehensive result1 058?(10)4 366?(227)(2 217)Notes:The decrease in Appropriation revenue - operating and Grants and subsidies from 2019-20 onwards is due to the transfer of financial responsibility for the Bass Strait Islands Community Service Obligation back to Hydro?Tasmania from 1?July?2019.The decrease in Appropriation revenue - capital reflects the finalisation of the BIMS Project. The increase in Other revenue in 2020-21 reflects the funding of costs associated with the relocation of the Department of Treasury and Finance’s staff and operation from the Treasury Building to 21 Kirksway Place, Battery Point.Table 12.8: Statement of Comprehensive Income - Administered2018-19?2019-20?2020-21?2021-22?2022-23?Forward?Forward?Forward?Budget?Budget?Estimate?Estimate?Estimate?$'000?$'000?$'000?$'000?$'000?Revenue and other income from transactionsFees and fines1 502?1 582?1 611?1 640?1 670?Total revenue and other income from transactions1 502?1 582?1 611?1 640?1 670?Expenses from transactionsTransfers to the Public Account1 502?1 582?1 611?1 640?1 670?Total expenses from transactions1 502?1 582?1 611?1 640?1 670?Net result from transactions (net operating balance)....?....?....?....?....?Net result....?....?....?....?....?Comprehensive result....?....?....?....?....?Table 12.9: Revenue from Appropriation by Output2018-19?2019-20?2020-21?2021-22?2022-23?Forward?Forward?Forward?Budget?Budget?Estimate?Estimate?Estimate?$'000?$'000?$'000?$'000?$'000?TreasurerOutput Group 1 - Financial and Resource Management Services1.1 Budget Development and Management2 585?2 938?2 767?2 939?2 992?1.2 Financial Management and Accounting Services3 649?3 546?3 631?3 840?3 891?1.3 Shareholder Advice on Government Businesses2 874?2 862?2 965?2 700?2 738?1.4 Government Property and Accommodation Services1 058?1 694?1 768?1 889?1 810?10 166?11 040?11 131?11 368?11 431?Output Group 2 - Economic and Fiscal Policy Advice2.1 Economic Policy Advice1 362?1 298?1 338?1 413?1 435?2.2 Regulatory Policy2 944?2 744?2 827?2 984?3 025?2.3 Intergovernmental Financial Matters1 671?1 434?1 267?1 348?1 368?5 977?5 476?5 432?5 745?5 828?Output Group 3 - Revenue, Superannuation and Regulatory Management Services3.1 Tax Administration and Revenue Collection9 006?9 009?9 207?9 632?9 790?3.2 Regulation and Administration of Liquor and Gaming6 680?6 834?7 027?6 797?6 900?3.4 Office of the Superannuation Commission14 410?14 057?14 198?14 469?14 860?30 096?29 900?30 432?30 898?31 550?Output Group 4 - Community Assistance4.1 Bass Strait Islands Community Service Obligation110 240?....?....?....?....?4.2 Public Trustee Community Service Obligation2 068?2 115?2 162?2 210?2 259?12 308?2 115?2 162?2 210?2 259?Capital Investment Program1 500?1 302?....?....?....?Department of Treasury and FinanceTotal Operating Services Expenditure58 547?48 531?49 157?50 221?51 068?Total Capital Services Expenditure1 500?1 302?....?....?....?60 047?49 833?49 157?50 221?51 068?Total Revenue from Appropriation60 047?49 833?49 157?50 221?51 068?Controlled Revenue from Appropriation60 047?49 833?49 157?50 221?51 068?60 047?49 833?49 157?50 221?51 068?Note:The cessation of Bass Strait Islands Community Service Obligation from 2019-20 is due to the transfer of financial responsibility for the obligation back to Hydro?Tasmania from 1 July 2019.Table 12.10: Administered Revenue2018-19?2019-20?2020-21?2021-22?2022-23?Forward?Forward?Forward?Budget?Budget?Estimate?Estimate?Estimate?$'000?$'000?$'000?$'000?$'000?Revenue Collected on Behalf of the Public AccountOther Regulatory Fees1 502?1 582?1 611?1 640?1 670?1 502?1 582?1 611?1 640?1 670?Total Administered Revenue1 502?1 582?1 611?1 640?1 670?Table 12.11: Administered Expenses2018-19?2019-20?2020-21?2021-22?2022-23?Forward?Forward?Forward?Budget?Budget?Estimate?Estimate?Estimate?$'000?$'000?$'000?$'000?$'000?Transfer to the Public Account1 502?1 582?1 611?1 640?1 670?Total Administered Expenses1 502?1 582?1 611?1 640?1 670?Table 12.12: Statement of Financial Position as at 30 June2019?2020?2021?2022?2023?Forward?Forward?Forward?Budget?Budget?Estimate?Estimate?Estimate?$'000?$'000?$'000?$'000?$'000?AssetsFinancial assetsCash and deposits6 572?7 067?5 679?6 109?5 876?Receivables319?318?320?323?326?Other financial assets679?774?790?806?822?7 570?8 159?6 789?7 238?7 024?Non-financial assetsProperty, plant and equipment11 373?996?8 044?8 608?7 779?Heritage and cultural assets84?84?84?84?84?Intangibles10 061?9 160?8 244?7 420?6 678?Other assets2649?1 621?1 373?1 125?1 132?12 167?11 861?17 745?17 237?15 673?Total assets19 737?20 020?24 534?24 475?22 697?LiabilitiesPayables599?661?667?674?681?Interest bearing liabilities2....?922?667?412?412?Employee benefits7 757?8 592?8 989?9 404?9 835?Other liabilities207?512?512?513?514?Total liabilities8 563?10 687?10 835?11 003?11 442?Net assets (liabilities)11 174?9 333?13 699?13 472?11 255?EquityAccumulated funds11 174?9 333?13 699?13 472?11 255?Total equity11 174?9 333?13 699?13 472?11 255?Notes:The increase in Property, plant and equipment in 2021 reflects leasehold improvements associated with the redevelopment of office accommodation at 21 Kirksway Place, Battery Point.The increase in Other assets and Interest bearing liabilities in 2020 is due to the incorporation of the right-of-use asset and associated liability for property, plant and equipment leased by the Department, as required for reporting periods due to the new Australian Accounting Standard AASB 16 Leases.Table 12.13: Statement of Cash Flows2018-19?2019-20?2020-21?2021-22?2022-23?Forward?Forward?Forward?Budget?Budget?Estimate?Estimate?Estimate?$'000?$'000?$'000?$'000?$'000?Cash flows from operating activitiesCash inflowsAppropriation receipts - operating158 547?48 531?49 157?50 221?51 068?Appropriation receipts – capital21 500?1 302?....?....?....?Fees and fines8 613?8 642?8 822?8 664?8 653?GST receipts1 600?1 600?1 600?1 600?1 600?Other cash receipts31 861?1 408?7 064?1 981?1 400?Total cash inflows72 121?61 483?66 643?62 466?62 721?Cash outflowsEmployee benefits(30 786)(30 876)(31 581)(32 599)(33 342)Superannuation(3 968)(4 080)(4 201)(4 482)(4 701)GST payments(1 600)(1 600)(1 600)(1 600)(1 600)Grants and subsidies1(16 193)(5 831)(5 866)(5 839)(5 877)Supplies and consumables(9 407)(9 363)(9 252)(8 482)(8 995)Other cash payments(7 759)(7 845)(7 849)(7 852)(7 857)Total cash outflows(69 713)(59 595)(60 349)(60 854)(62 372)Net cash from (used by) operating activities2 408?1 888?6 294?1 612?349?Cash flows from investing activitiesPayments for acquisition of non-financial assets(1 620)(1 723)(7 221)(721)(121)Net cash from (used by) investing activities(1 620)(1 723)(7 221)(721)(121)Cash flows from financing activitiesNet borrowings....?(461)(461)(461)(461)Net cash from (used by) financing activities....?(461)(461)(461)(461)Net increase (decrease) in cash and cash equivalents held788?(296)(1 388)430?(233)Cash and deposits at the beginning of the reporting period5 784?7 363?7 067?5 679?6 109?Cash and deposits at the end of the reporting period6 572?7 067?5 679?6 109?5 876?Notes:The decrease in Appropriation receipts - operating and Grants and subsidies from 2019-20 onwards is due to the transfer of financial responsibility for the Bass Strait Islands Community Service Obligation back to Hydro?Tasmania from 1 July 2019.The decrease in Appropriation receipts - capital reflects the finalisation of the BIMS Project. The increase in Other cash receipts in 2020-21 reflects the funding of costs associated with the relocation of the Department of Treasury and Finance’s staff and operation from the Treasury Building to 21 Kirksway Place, Battery Point.Table 12.14: Statement of Cash Flows - Administered2018-19?2019-20?2020-21?2021-22?2022-23?Forward?Forward?Forward?Budget?Budget?Estimate?Estimate?Estimate?$'000?$'000?$'000?$'000?$'000?Cash flows from operating activitiesCash inflowsFees and fines1 502?1 582?1 611?1 640?1 670?Total cash inflows1 502?1 582?1 611?1 640?1 670?Cash outflowsTransfers to the Public Account(1 502)(1 582)(1 611)(1 640)(1 670)Total cash outflows(1 502)(1 582)(1 611)(1 640)(1 670)Net increase (decrease) in cash and cash equivalents held....?....?....?....?....?Cash and deposits at the beginning of the reporting period....?....?....?....?....?Cash and deposits at the end of the reporting period....?....?....?....?....? ................
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