5
GENERAL GOVERNMENT
REVENUE
Key Issues

Total General Government Sector revenue is estimated to be $5 874.0 million in 2017-18, an
increase of $300.3 million above the 2016-17 Budget estimate of $5 573.7 million.

Key components of General Government Sector revenue in 2017-18 include:
–
GST Revenue is estimated to be $2 387.4 million, an increase of $88.2 million above the 2016-17
Budget of $2 299.2 million;
–
Australian Government Payments for Specific Purposes are estimated to be $1 251.6 million, an
increase of $30 million above the 2016-17 Budget of $1 221.6 million; and
–
Taxation Revenue is estimated to be $1 128.5 million, an increase of $72.9 million above the
2016-17 Budget of $1 055.6 million.

Tasmania's share of revenue from Grants, including GST and Australian Government Grants for
Specific Purposes, equates to 62.7 per cent of total General Government sector revenue.
General Government Revenue
79
TOTAL REVENUE
This chapter provides an overview of Revenue for the 2017-18 Budget and Forward Estimates. Table 5.1 lists
the major General Government Sector revenue sources.
Table 5.1:
General Government Sector Revenue
2016-17)
2017-18
2018-19)
2019-20)
2020-21)
)
)
Forward)
Forward)
Forward)
Budget)
Budget)
Estimate)
Estimate)
Estimate)
$m)
$m)
$m)
$m)
$m)
Grants
3 634.6)
3 682.9
3 673.5
3 735.4
3 748.3
Taxation
1 055.6)
1 128.5
1 147.4
1 173.0
1 198.9
352.9)
408.0
417.0
424.8
428.7
Fines and Regulatory Fees
96.5)
98.9
99.3
100.3
101.6
Interest Income
16.5)
19.6
17.6
16.0
17.2
Dividend, Tax and Rate Equivalent Income
263.8)
358.4
338.2
370.1
390.4
Other Revenue
153.8)
177.7
170.1
165.2
163.5
5 573.7)
5 874.0
5 863.0
5 984.8
6 048.7
Sales of Goods and Services
In 2017-18, Total General Government Sector revenue is forecast to be $300.3 million higher than the 2016-17
Budget.
Tasmania's most significant source of funding is Grants revenue (including GST and Australian Government
Grants), which comprises 62.7 per cent of total revenue in 2017-18. State Own-Source Revenue accounts for
37.3 per cent of total revenue.
Chart 5.1 shows the composition of Total General Government Sector revenue over time.
Major revenue risks and sensitivities are discussed in chapter 1 of this Budget Paper. The major variances in
revenue compared to the 2016-17 Budget are discussed in the Policy and Parameter Statement in chapter 4
of this Budget Paper.
80
General Government Revenue
Chart 5.1:
Composition of Total Revenue, 2007-08 to 2020-211
Notes:
1. Data reflects actual outcomes for 2007-08 to 2015-16 and the original Budget estimates for 2016-17.
2. Other Australian Government Grants includes Specific Purpose Payments and National Partnership Payments.
3. Other includes: Sales of Goods and Services; Fines and Regulatory Fees; Interest Income; Dividend, Tax and Rate
Equivalent Income; Other Revenue; and Other Grants and Subsidies.
General Government Revenue
81
GRANTS
Grants primarily reflect transfers of funding from the Australian Government and are estimated to be
$3 682.9 million in 2017-18. This is an increase of $48.3 million above the 2016-17 Budget of $3 634.6 million.
Table 5.2:
Grants
2016-17
2017-18
2018-19
2019-20
2020-21
Budget
Budget
Forward
Forward
Forward
Estimate
Estimate
Estimate
$m
$m
$m
$m
)
)
)
2 299.2
2 387.4
2 467.0
2 508.8
2 577.5
To the State
629.4
658.1
676.9
656.1
672.4
Through the State
237.7
253.9
263.3
272.7
282.4
867.1
912.0
940.3
928.9
954.9
283.2
266.6
140.9
174.6
91.1
71.3
73.0
74.7
77.2
79.7
354.5
339.6
215.6
251.8
170.8
1 221.6
1 251.6
1 155.9
1 180.7
1 125.7
$m
General Purpose Payments (Untied Funding)
GST Revenue
)
Payments for Specific Purposes (Tied Funding)1
Specific Purpose Payments2
National Partnership Payments
To the State
Through the State
Total Payments for Specific Purposes
Other Grants and Subsidies3
Total
113.8
43.9
50.7
46.0
45.2
3 634.6
3 682.9
3 673.5
3 735.4
3 748.3
Notes:
1. Estimates of Specific Purpose Payments and some National Partnership Payments may differ from those published
in the Australian Government's 2017-18 Budget due to the need to finalise State estimates before the release of the
Australian Government Budget.
2. Specific Purpose Payments include National Health Reform and Students First education reforms funding.
3. Other Grants and Subsidies primarily relate to payments to the State for Commonwealth Own Purpose Expenditure.
In accordance with the Intergovernmental Agreement on Federal Financial Relations (IGA), transfers from the
Australian Government fall into two categories:

General Purpose Payments (GPPs), which are 'untied' payments that can be used at the State's discretion.
The GST distribution is the only GPP received by Tasmania in 2017-18; and

conditional (tied) funding in the form of Payments for Specific Purposes, including Specific Purpose
Payments (SPPs), Reform Funding and National Partnership Payments (NPPs). These payments must
only be spent for purposes as agreed with the Australian Government.
The Australian Government also provides payments directly to State agencies through Commonwealth Own
Purpose Expenditure (COPEs). Most of these payments are made to the Department of Health and Human
Services and the Tasmanian Health Service.
82
General Government Revenue
These payments reduce by $69.9 million in 2017-18, largely due to the agreement by the Tasmanian
Government to resume ownership of the Mersey Community Hospital in exchange for a significant one-off
Australian Government payment of $730.4 million which is expected to occur by 30 June 2017. This payment
is included in the 2016-17 Estimated Outcome (see Appendix 3 of this Budget Paper).
The Australian Government Mersey Community Hospital payment will be transferred to the Tasmanian Public
Finance Corporation (Tascorp) as a one-off equity contribution and will be invested by Tascorp with any
returns to be retained in the Mersey Community Hospital Fund. The Government will introduce legislation to
require Tascorp to pay each year a dividend equal to the operating costs of the Mersey Community Hospital,
escalating at 3.5 per cent each year until cessation of the Fund. This dividend is shown in Table 5.9.
GST Revenue
GST Revenue is the largest single source of revenue for Tasmania representing 40.6 per cent of Total
General Government Sector revenue in 2017-18.
In accordance with the Intergovernmental Agreement on Federal Financial Relations, all GST Revenue
collected by the Australian Government is distributed amongst the states and territories. Each state's GST
entitlement is dependent on three factors: national GST collections, the state's per capita relativity and the
state's share of the national population.
The Commonwealth Grants Commission (CGC) makes annual recommendations to the Australian
Government Treasurer regarding each jurisdiction's relativity.
Tasmania has been assessed as having a higher per capita GST need than all other jurisdictions, except the
Northern Territory, and is a major beneficiary of the equalisation process, receiving $1.1 billion, or
approximately 81 per cent, more GST revenue in 2017-18 than its per capita share. This reflects the relatively
higher cost of service provision in the State and the below average capacity to raise revenue. Tasmania has
the second lowest assessed fiscal capacity and Western Australia has the strongest assessed fiscal capacity.
Further detail on the CGC's methodology is provided in the Guide to the Budget (available on the Treasury
website), and the Report on GST Revenue Sharing Relativities - 2017 Update (2017 Update Report), which
can be found on the CGC website at www.cgc.gov.au.
For the 2017-18 Budget, Treasury has used its own financial model to forecast GST revenues, as was the
case for the 2016-17 Budget. The model incorporates the latest CGC assessments and recommended
relativities, Australian Government forecasts of the GST pool and state populations, and state and territory
own-source revenue estimates.
Chart 5.2 below illustrates Tasmania's relativities since the introduction of the GST. The chart shows
Tasmania's forecast relativities returning to trend after rising rapidly until 2015-16, primarily as a result of the
additional royalty revenue generated in Western Australia and the other mining states during the mining boom.
General Government Revenue
83
Chart 5.2:
Tasmanian GST Revenue Sharing Relativities, 2000-01
to 2020-211
Note:
1. CGC calculation of relativities prepared on a consistent basis, with healthcare grants (pre 2009-10) treated by inclusion
and five year averaging of single year relativities (prior to 2010-11) replaced with the current three year averaging
method.
Table 5.3 shows GST Revenue estimates for the national pool and Tasmania.
Table 5.3:
Tasmanian GST Revenue Estimates
2017-18
2018-19
2019-20
2020-21
)
Forward
Forward
Forward
Budget
Estimate
Estimate
Estimate
)
)
)
)
National GST Collections ($m)1
Tasmania's GST Share (%)2
62 340
65 590
67 670
71 540
3.83
3.76
3.71
3.61
Tasmania's GST Revenue ($m)2
2 387
2 467
2 509
2 577
Notes:
1. The National GST Collections are preliminary 2017-18 Australian Budget estimates provided by the Australian
Government, due to the need to finalise State estimates before the release of the Australian Government Budget.
2. 2017-18 Budget is based on the actual relativity that will apply in 2017-18 as recommended by the CGC.
GST payments to Tasmania are expected to be $2 387.4 million in 2017-18. The growth in GST revenue over
the Forward Estimates to Tasmania reflects GST pool growth, offset by a gradual reduction in Tasmania’s
GST relativity and lower than average population growth.
After rising during the mining boom, Tasmania's GST relativity is forecast to return towards the long-term trend
over the Forward Estimates as a result of:

comparatively weaker own-source revenue growth forecast in Western Australia and other resource-rich
states;
84
General Government Revenue

slow population growth compared to the national average, which reduces the CGC’s assessment of
Tasmania’s need to invest in infrastructure; and

a slightly higher share of Commonwealth payments.
Chart 5.3 below illustrates the difference between the 2016-17 and 2017-18 State Budget estimates of GST
revenue to Tasmania over the Forward Estimates. The compound annual growth rate of GST revenue from
2017-18 to 2020-21 is 2.6 per cent.
Tasmania's share of the GST pool has increased slightly from approximately 3.79 per cent in 2016-17 to
3.83 per cent in 2017-18.
Chart 5.3:
GST Revenue to Tasmania, 2007-08 to 2020-21
Note:
1. The 2017-18 Budget includes the 2016-17 Estimated Outcome for GST Revenue.
Commonwealth Payments for Specific Purposes
Specific Purpose Payments and Reform Funding
SPPs are an ongoing funding arrangement between the Australian Government and the States for service
delivery in a particular sector. There are currently three SPPs in operation: the National Skills and Workforce
Development SPP; the National Disability Services SPP; and the National Affordable Housing SPP.
Reform funding arrangements, namely the National Health Reform Agreement and the Students First
education reforms, replaced the former Health and Education SPPs as of July 2012 and January 2014
respectively.
General Government Revenue
85
In 2017-18, Tasmania will receive an estimated $912.0 million in SPPs and national health and education
reform agreement funding. This is an increase of $44.9 million above the 2016-17 Budget estimate
of $867.1 million. The growth in SPPs and reform funding primarily reflects an increase in National Health
Reform and Students First education reform funding. The National Disability Services SPP ceases on
30 June 2019 with the commencement of the National Disability Insurance Full Scheme on 1 July 2019.
It is noted that estimates of SPPs and some National Partnership Payments may differ from those published
in the Australian Government's 2017-18 Budget due to the need to finalise State estimates before the release
of the Australian Government Budget.
National Partnership Payments
National Partnership Payments (NPPs) are provided to each State through National Partnership Agreements
and Project Agreements. The agreements are usually time-limited and aim to support the delivery of projects,
facilitate reforms within the State or reward the State for delivering on national reforms.
In 2017-18, Tasmania will receive an estimated $339.6 million of funding in NPPs, a decrease of $14.9 million
from the 2016-17 Budget of $354.5 million. This primarily reflects the scheduled expiry of the Improving Health
Services in Tasmania and Building Australia’s Future Workforce - National Partnership on skills reform NPPs
at the end of 2016-17, and a smaller 2017-18 Redevelopment of the Royal Hobart Hospital payment. These
decreases are partially offset by increases in funding under the Land Transport Infrastructure Projects and
the Natural Disaster Relief and Recovery Arrangements NPP in response to the 2016 fire and flood events.
Table 5.4
details
the
Payments
for
Specific
Purposes
that
Tasmania
will
receive
from
the
Australian Government in 2017-18 and over the Forward Estimates period.
Table 5.4:
Commonwealth Payments for Specific Purposes1
2016-17
2017-18
2018-19
2019-20
2020-21
)
)
Forward
Forward
Forward
Budget
Budget
Estimate
Estimate
Estimate
$m
$m
$m
$m
$m
Specific Purpose Payments
)
Health
National Health Reform2
359.1
379.7
389.5
399.2
Students First - Government Schools
178.8
185.8
191.1
196.5
203.0
Students First - Non-Government Schools
237.7
253.9
263.3
272.7
282.4
Total Education Specific Purpose Payments
416.5
439.7
454.4
469.2
485.4
National Skills and Workforce Development
31.3
31.4
34.4
31.5
31.5
National Disability Services
31.7
32.4
33.1
....
....
National Affordable Housing
28.5
28.8
28.8
28.9
29.0
Total Specific Purpose Payments
867.1
912.0
940.3
928.9
954.9
Education
409.0
)
)
86
General Government Revenue
Table 5.4:
Commonwealth Payments for Specific Purposes1
(continued)
2016-17
2017-18
2018-19
2019-20
2020-21
)
)
Forward
Forward
Forward
Budget
Budget
Estimate
Estimate
Estimate
$m
$m
$m
$m
$m
25.0
15.0
10.0
....
....
Reducing elective surgery waiting lists in Tasmania
7.5
....
....
....
....
John L Grove - LGH
5.0
....
....
....
....
Essential vaccines
2.9
2.8
2.8
2.8
0.2
Expansion of the BreastScreen Australia Program
0.4
....
....
....
....
Public dental services for adults
Other3
....
2.4
....
....
....
….
0.4
0.2
0.2
....
40.9
20.6
13.0
3.0
0.2
Universal access to early childhood education
8.6
6.1
....
....
....
National School Chaplaincy Program
2.2
2.2
....
....
....
Independent Public Schools Initiative
0.6
....
....
....
....
National quality agenda for early childhood education
....
0.3
....
....
....
....
0.1
....
....
....
11.4
8.7
....
....
....
11.6
....
....
....
....
11.6
....
....
....
....
National Partnership Payments
Health
Health and Hospitals Fund
Redevelopment of the Royal Hobart Hospital
Improving Health Services in Tasmania
Total Health National Partnerships
Education
and care
Online Safety program in schools
Total Education National Partnerships
Skills and Workforce Development
Building Australia's Future Workforce - National
Partnership on skills reform
Total Skills and Workforce Development National
Partnerships
Community Services (including Disability)
DisabilityCare Australia Fund4
)
4.1
4.2
12.0
102.1
23.3
10.1
10.5
10.8
....
....
4.3
5.4
6.6
....
....
18.5
20.1
29.4
102.1
23.3
Transitioning Responsibilities for Aged Care and
Disability Services
Pay Equity for the Social and Community Services
Sector
Total Community Services (including Disability)
National Partnerships
General Government Revenue
87
Table 5.4:
Commonwealth Payments for Specific Purposes1
(continued)
2016-17
2017-18
2018-19
2019-20
2020-21
)
)
Forward
Forward
Forward
Budget
Budget
Estimate
Estimate
Estimate
$m
$m
$m
$m
$m
2.8
....
....
....
....
2.8
....
....
....
....
Affordable Housing
Homelessness
Total Affordable Housing National Partnerships
Infrastructure
Land Transport Infrastructure Projects
Road Component5
107.5
102.3
34.8
60.0
60.0
Rail Component
20.4
13.8
14.4
....
....
Off-Network Projects - Road
15.5
39.6
18.8
2.1
....
Black Spot Projects
8.3
4.9
1.6
....
....
Bridges Renewal program
0.7
1.9
1.2
....
....
Heavy Vehicle Safety & Productivity Program
1.1
1.0
0.8
....
....
Asset Recycling Fund - New Investments
2.0
2.4
....
....
....
Interstate Road Transport
0.4
0.4
0.4
0.4
0.4
0.8
1.6
....
....
....
156.6
167.7
72.0
62.5
60.4
18.7
19.0
14.0
....
....
1.8
1.7
....
....
....
Developing demand driver infrastructure for the
tourism industry
Total Infrastructure National Partnerships
Environment
Sustainable Rural Water Use and Infrastructure
Program
Management of the World Heritage Values of the
Tasmanian Wilderness
Other6
....
0.1
0.1
....
....
20.5
20.8
14.1
.…
.…
71.3
73.0
74.7
77.2
79.7
5.7
5.9
5.9
5.9
6.0
13.0
21.7
5.4
....
....
Community Legal Centres
1.5
1.1
1.1
1.2
1.2
Bushfire Mitigation
0.4
.…
....
....
....
Provision of Fire Services
0.3
….
….
....
....
92.2
101.6
87.1
84.3
86.9
354.5
339.6
215.6
251.8
170.8
Total Environment National Partnerships
Other Services
Financial assistance to local governments - Financial
Assistance Grant program
Legal Assistance Services
Natural Disaster Relief and Recovery
Arrangements7
Total Other Services
Total National Partnership Payments
88
General Government Revenue
Table 5.4:
Commonwealth Payments for Specific Purposes1
(continued)
2016-17
2017-18
2018-19
2019-20
2020-21
)
)
Forward
Forward
Forward
Budget
Budget
Estimate
Estimate
Estimate
$m
$m
$m
$m
$m
1 221.6
1 251.6
1 155.9
1 180.7
1 125.7
Total to the State
912.6
924.7
817.8
830.8
763.5
Total through the State
309.0
326.9
338.0
349.9
362.1
1 221.6
1 251.6
1 155.9
1 180.7
1 125.7
TOTAL PAYMENTS FOR SPECIFIC PURPOSES
Notes:
1. Estimates of Specific Purpose Payments and some National Partnership Payments may differ from those published
in the Australian Government's 2017-18 Budget due to the need to finalise State estimates before the release of the
Australian Government Budget.
2. From 2017-18 to 2019-20, the Australian Government has agreed to continue funding for Public Hospital services
using activity based funding, capped at 6.5 per cent per annum nationally. However, given there is uncertainty with
the quantum of funding under the new arrangements, funding based on previous growth trends has been assumed.
3. Includes funding for OzFoodNet and National Bowel Cancer Screening - participant follow-up function.
4. Estimates of DisabilityCare Australia Fund payments included in the 2017-18 Budget and Forward Estimates reflect
the Australian Government’s initial offer as set out in the bilateral transition agreement Tasmania signed in
December 2015.
5. Provision included in 2019-20 and 2020-21 for future road funding on the expiry of the current agreement.
6. Includes funding for the National Whale Stranding Action Plan and Managing established pest animals and weeds.
7. Includes $36 000 funding for 2017-18 under the Natural Disaster Relief - Fire agreement.
General Government Revenue
89
STATE TAXATION
State Taxation revenue is the main source of own-source revenue and comprises 19.2 per cent of total
revenue in 2017-18.
In 2017-18, State Taxation revenue is forecast to be $72.9 million higher than the 2016-17 Budget, primarily
due to increases in Conveyance Duty and Land Tax. The increase in Conveyance Duty is driven by growth in
residential property prices and transaction volumes while the increase in Land Tax reflects a net increase in
land values across the State, system enhancements leading to improvements in debt management and
targeted compliance efforts.
State Taxation revenue is forecast to grow by $70.4 million (or by a compound annual growth rate of
2.0 per cent) from 2017-18 to 2020-21, due mainly to growth in tax bases for Payroll Tax and Land Tax (there
is no change in the rate structure of either tax).
Table 5.5 provides details of the components of the State Taxation estimates. Definitions of the State taxes,
including relevant legislation, can be found in the Glossary section of the Guide to the Budget.
Table 5.5:
State Taxation
2016-17
2017-18
2018-19
2019-20
2020-21
Forward
Forward
Forward
Budget
Budget
Estimate
Estimate
Estimate
$m
$m
$m
$m
$m
331.1
338.7
349.2
360.3
371.0
Land tax
93.8
105.2
107.9
111.4
114.8
Fire service levies1
59.4
60.3
62.6
65.1
67.6
Government guarantee fees
Conveyance duty2
21.5
16.9
18.2
16.8
16.7
191.2
246.8
241.6
244.0
246.3
365.9
429.2
430.3
437.3
445.4
56.4
54.9
55.0
55.2
55.6
Payroll tax
Taxes on property
Taxes on the provision of goods and services
Gambling taxes
Casino tax and licence fees
Betting exchange taxes and levies3
Lottery tax
Totalizator wagering levy
Insurance duty
90
General Government Revenue
3.4
....
....
....
....
30.6
30.4
30.9
31.4
32.0
7.3
7.3
7.5
7.7
7.8
84.7
87.3
89.6
92.0
94.5
182.5
179.9
183.0
186.3
189.9
Table 5.5:
State Taxation (continued)
2016-17
2017-18
2018-19
2019-20
2020-21
Forward
Forward
Forward
Budget
Budget
Estimate
Estimate
Estimate
$m
$m
$m
$m
$m
40.4
42.1
43.4
44.7
46.0
Motor vehicle duty
42.9
42.9
42.9
42.9
42.9
Motor tax
85.0
87.7
90.0
92.4
94.8
7.8
8.0
8.5
9.0
9.0
176.1
180.7
184.8
189.0
192.7
1 055.6
1 128.5
1 147.4
1 173.0
1 198.9
Taxes on the use of goods and services
Vehicle registration fees
Motor vehicle fees and taxes
Motor vehicle fire levy
TOTAL STATE TAXATION
Notes:
1. Fire service levies are reported as a tax for the purposes of the Uniform Presentation Framework. However, all
revenues go directly to the State Fire Commission.
2. Conveyance duty is forecast to reduce slightly in 2018-19 due to an expected return towards trend levels of large
commercial property transactions, which have been higher than usual in 2016-17 and are forecast to remain at
elevated levels in 2017-18.
3. The reduction in Betting exchange taxes and levies from 2017-18 reflects the surrender by Betfair of its Tasmanian
Gaming Licence.
General Government Revenue
91
Chart 5.4 shows that the 2017-18 Budget and Forward Estimates have increased compared to the levels
forecast in the 2016-17 Budget. This increase has been largely driven by Conveyance Duty due to growth in
residential property prices and transaction volumes.
Chart 5.4:
State Taxation Revenue, 2009-10 to 2020-21
Note:
1. This includes the 2016-17 Estimated Outcome for State Taxation Revenue. The increase in the 2016-17 Estimated
Outcome compared to the 2016-17 Budget is due mainly to higher than expected revenue from Conveyance Duty and
Land Tax.
92
General Government Revenue
Tax Expenditure Statement
This statement provides an estimate of the revenue the Government has forgone, or the financial benefit
obtained by taxpayers, through concessions, benefits and incentives the Government provides through the
tax system. Tax expenditures have been estimated for the main revenue lines of payroll tax, land tax and
conveyance duty.
Methodology
Tax exemptions, rebates and concessions are measured based on the revenue foregone approach, where
the value of the revenue that would have been received if the standard rate of tax had been applied is
estimated.
The methodology does not allow for any behavioural changes that may result if an exemption, rebate or
concession was removed. The approach also does not allow for potential tax rate changes that may result if
a tax exemption, rebate or concession were removed.
Where thresholds are removed, the resulting measure of expenditure is labelled a tax free threshold in the
table below. The tax expenditure, or revenue foregone, associated with providing tax free thresholds has been
calculated for payroll tax.
All other expenditure measures included in Table 5.6 are measured as deviations from the current tax settings.
Table 5.6:
Estimated Major Tax Expenditures
2016-17
2017-18
$m
$m
215.0
191.9
Educational institutions exemption
1.2
15.3
Health care service provider exemptions
1.1
4.7
Employer payroll tax rebate for additional positions created
1.7
4.2
219.0
216.1
111.2
116.9
79.8
95.4
6.7
6.6
3.7
3.8
201.4
222.7
Payroll Tax1
Tax-free threshold
Land Tax2
Principal place of residence exemption
Primary production land exemption
Religious bodies, charitable institutions, or educational institutions exemption
Other3
General Government Revenue
93
Table 5.6:
Estimated Major Tax Expenditures (continued)
2016-17
2017-18
$m
$m
Ex gratia relief provided for corporate reconstructions
2.0
0.7
Family farm transfers
2.0
2.3
Conveyance Duty4
Transfer of public road or park/garden to council
Relationship breakdown or spouse and significant relationship transfers 5
Other6
TOTAL
1.8
2.4
11.2
13.2
3.4
3.4
20.4
22.0
440.8
460.8
Notes:
1. While the 2016-17 estimates reflect the approach used for the 2016-17 Budget, the 2017-18 estimate for Payroll Tax
expenditure reflects the use of all wages paid in Tasmania based on 2015-16 Work Cover data. Estimates are based
on the expected growth in Payroll Tax revenue.
2. The Land Tax base is all freehold land in Tasmania in 2016-17. Estimates are based on the expected growth in Land
Tax revenue. Land classified as principal place of residence (PPR) and primary production land (PPL) is charged a nil
rate of Land Tax. Property used for religious, charitable or educational purposes is exempt from Land Tax.
3. Comprises land owned by the Commonwealth, aged care providers and charitable organisations.
4. The Conveyance Duty tax base is comprised of concessional or exempt properties transferred in 2015-16. Estimates
are based on the expected growth in Conveyance Duty revenue. Not all exempt transactions are recorded and not all
valuation data is available, therefore the estimates are likely to be understated.
5. The estimate for 2017-18 includes transfers under the Relationship Act 2003 between carers and relatives which was
previously included in ‘Other’.
6. Comprises transfers to a special trustee under section 37 of the Duties Act 2001 and instances where there is no
change in beneficial ownership.
94
General Government Revenue
OTHER REVENUE SOURCES
Sales of Goods and Services
Revenue from the Sales of Goods and Services is estimated to be $408.0 million in 2017-18, an increase of
$55.1 million above the 2016-17 Budget of $352.9 million.
Table 5.7 details the major components of revenue from the Sales of Goods and Services.
Table 5.7:
Sales of Goods and Services1
2016-17)
2017-18)
2018-19)
2019-20)
2020-21)
Forward)
Forward)
Forward)
Budget)
Budget)
Estimate)
Estimate)
Estimate)
$m)
$m)
$m)
$m)
$m)
36.8)
37.3)
37.6)
38.3)
38.8)
0.1)
0.1)
0.1)
0.1)
0.1)
69.0)
68.2)
68.5)
69.3)
70.3)
Justice
3.8)
3.9)
4.0)
4.1)
4.2)
Marine and Safety Tasmania
3.9)
5.5)
3.9)
3.0)
5.2)
Management
2.1)
2.3)
2.3)
2.3)
2.3)
Premier and Cabinet
8.8)
9.4)
9.4)
9.5)
9.5)
40.8)
45.3)
45.9)
46.4)
47.1)
State Fire Commission
6.0)
6.1)
6.2)
6.4)
6.5)
State Growth
9.4)
9.5)
9.6)
9.7)
9.8)
Tasmanian Audit Office
5.6)
5.7)
5.7)
5.7)
5.7)
140.3)
187.6)
195.8)
201.4)
199.7)
24.5)
25.7)
26.4)
27.2)
28.0)
351.1)
406.5)
415.4)
423.3)
427.0)
1.8)
1.5)
1.5)
1.6)
1.6)
352.9)
408.0)
417.0)
424.8)
428.7)
Departmental Fees and Recoveries
Education
Finance-General
Health and Human Services
Police, Fire and Emergency
Primary Industries, Parks, Water and
Environment2
Tasmanian Health Service3
TasTAFE
Other Sales of Goods and Services
TOTAL SALES OF GOODS AND
SERVICES
Notes:
1. The information provided in this section may differ from the Sales of Goods and Services for each agency in
Government Services Budget Paper No 2 due to the elimination of inter-agency transactions during the consolidation
process.
2. The increase in 2017-18 and the Forward Estimates primarily reflects the recognition of revenue associated with the
Three Capes Track.
3. The increase in 2017-18 and over the Forward Estimates primarily reflects new funding associated with the listing of
Hepatitis C medications on the Pharmaceutical Benefits Scheme.
General Government Revenue
95
Fines and Regulatory Fees
Revenue from Fines and Regulatory Fees is estimated to be $98.9 million in 2017-18, an increase of
$2.4 million above the 2016-17 Budget of $96.5 million. Table 5.8 details the major components of Fines and
Regulatory Fees.
Table 5.8:
Fines and Regulatory Fees1
2016-17)
2017-18)
2018-19)
2019-20)
2020-21)
Forward)
Forward)
Forward)
Budget)
Budget)
Estimate)
Estimate)
Estimate)
$m)
$m)
$m)
$m)
$m)
3.0
3.0
3.0
3.0
3.0
21.1)
21.1
20.7
20.7
20.8
24.10
24.1)
23.7)
23.7)
23.8)
Abalone Licences
5.4)
5.9)
5.9)
6.0)
6.1)
Water Licence Fees
1.9)
2.0)
2.0)
2.1)
2.1)
Environment Fees
4.7)
4.7)
4.8)
4.8)
4.9)
Drivers Licences
7.2)
7.0)
7.1)
7.2)
7.3)
Photo Licence Fees
1.7)
1.7)
1.8)
1.8)
1.8)
Vehicle Inspection Services Fees3
....)
....)
....)
....)
0.1)
Quarantine Fees
1.2)
1.2)
1.3)
1.3)
1.4)
0.6)
0.6)
0.6)
0.6)
0.6)
Magisterial Courts Regulatory Fees
1.2)
0.7)
0.7)
0.7)
0.7)
Registrar-General Regulatory Fees
1.9)
1.9)
1.9)
2.0)
2.0)
Fines
Commitment to Increase Fines Revenue
Other Fines2
Fees
Consumer Affairs Office Regulatory
Fees
Supreme Court Regulatory Fees
Other Regulatory Fees4
0.8)
1.3)
1.3)
1.4)
1.4)
45.7)
47.7)
48.1)
48.7)
49.5)
72.3)
74.8)
75.6)
76.5)
77.9)
96.5)
98.9)
99.3)
100.3)
101.6)
TOTAL FINES AND REGULATORY
FEES
Notes:
1. The information provided in this section may differ from the Fines and Regulatory Fees for each agency in Government
Services Budget Paper No 2 due to the elimination of inter-agency transactions during the consolidation process.
2. Other Fines is primarily comprised of fines collected by the Department of Justice, Inland Fisheries Service and the
Department of Police, Fire and Emergency Management.
3. Vehicle Inspection Services Fees are estimated to be $47 000 in 2017-18, increasing to $48 000 in 2018-19, $49 000
in 2019-20 and $50 000 in 2020-21. This amount does not appear in the Table until 2020-21 due to rounding.
4. Other Regulatory Fees includes: the Tasmanian Economic Regulator; the Community Support Levy; and various other
fees collected by agencies, such as recreational fishing licence fees.
96
General Government Revenue
Interest Income
Interest Income is estimated to be $19.6 million in 2017-18, an increase of $3.1 million compared to the
2016-17 Budget estimate of $16.5 million. The increase reflects higher interest rates.
Dividend, Tax and Rate Equivalent Income
Dividend, Tax and Rate Equivalent Income is estimated to be $358.4 million in 2017-18, an increase of
$94.6 million compared to the 2016-17 Budget estimate of $263.8 million. This increase is largely due to the
forecast dividend payable by Tascorp of $78.1 million in 2017-18 equal to the operating costs of the Mersey
Community Hospital (as detailed in the Grants section of this Chapter).
Chart 5.5:
Dividend, Tax and Rate Equivalent Income, 2009-10 to
2020-211
Note:
1. Data reflects actual outcomes for 2009-10 to 2015-16 and the original Budget estimates for 2016-17.
General Government Revenue
97
Table 5.9:
Dividend, Tax and Rates Equivalent Income1
2016-17)
2017-18)
2018-19)
2019-20)
2020-21)
Forward)
Forward)
Forward)
Budget)
Budget)
Estimate)
Estimate)
Estimate)
$m)
$m)
$m)
$m)
$m)
Aurora Energy Pty Ltd2
Hydro Tasmania3
20.9)
16.9
19.3
17.5
16.8
….)
….)
12.0
30.1
73.6
Motor Accidents Insurance Board4
43.8)
56.9
46.4
38.1
32.5
Tasmanian Networks Pty Ltd5
Tasmanian Ports Corporation6
59.5)
73.5
30.1
38.9
43.3
....)
3.7
5.1
9.3
9.6
5.1)
4.0
4.0
0.2
1.4
129.4)
155.0
116.9
134.1
177.2
40.0
40.0
40.0
40.0
….
40.0
40.0
40.0
40.0
….
….
78.1
80.9
83.7
86.6
….
78.1
80.9
83.7
86.6
Aurora Energy Pty Ltd
Hydro Tasmania10
7.2
9.2
8.3
8.0
7.9
7.2
11.4
18.4
35.0
43.1
Motor Accidents Insurance Board
6.2
17.7
17.1
18.4
19.6
Dividends
Tasmanian Public Finance Corporation7
Special Dividends
TT-Line Company Pty Ltd8
Mersey Community Hospital Dividend
Tasmanian Public Finance Corporation9
Taxation Equivalents
….
0.1
….
….
….
56.2
31.8
35.8
37.9
41.7
Tasmanian Ports Corporation Pty Ltd12
Tasmanian Public Finance Corporation7
1.9
2.4
4.7
4.8
5.9
4.4
5.0
4.8
3.6
3.8
TT-Line Company Pty Ltd13
7.0
3.4
6.8
0.1
….
90.2
81.0
96.0
107.8
122.0
4.2)
4.3
4.4
4.5
4.6
4.2)
4.3
4.4
4.5
4.6
263.8)
358.4
338.2
370.1
390.4
Public Trustee
Tasmanian Networks Pty Ltd11
Rates Equivalents
Hydro Tasmania
TOTAL DIVIDEND TAX AND RATE
EQUIVALENT INCOME
Notes:
1. All Dividend, Tax and Rate Equivalent Income is reported on an accrual basis for all years.
2. The reduction in Dividends payable by Aurora Energy Pty Ltd in 2017-18 is due to lower profit estimates due to the
Tasmanian Economic Regulator's Final 2016 Retail Price Determination.
98
General Government Revenue
3. The increased dividends from Hydro Tasmania are due to improved operating conditions subsequent to the Basslink
outage and low inflow period during 2015-16. The business will make a gradual return to its normal dividend policy
over the Budget period. A zero dividend is still expected in 2017-18 but the business will return to a full dividend
payment by 2020-21. The recent significant increase in wholesale electricity prices was not factored into Hydro
Tasmania's returns to government in the 2017-18 Budget.
4. The increase in Dividends from the Motor Accidents Insurance Board in 2017-18 reflects the expectation of increased
profitability in 2016-17, predominately due to lower claims expenses. The gradual reduction in Dividends from 2018-19
reflects the impact of returning to a 50 per cent dividend payout ratio on the MAIB’s five year rolling average dividend
policy.
5. The decline in Dividends from Tasmanian Networks Pty Ltd in 2018-19 reflects the forecast decrease in regulated
distribution and transmission revenues over the period.
6. The increase in Dividends and Income Tax Equivalents from Tasmanian Ports Corporation Pty Ltd across the Budget
and Forward Estimates period reflects the progressive return to profitability as the community asset maintenance
program concludes and forecast freight volumes increase.
7. Tascorp is subject to a fixed cash lump sum dividend and income tax equivalent regime. In addition, discretionary
dividends can be paid if circumstances warrant. The reduction in 2019-20 reflects that no additional discretionary
dividends are expected to be paid.
8. The Special Dividends from TT-Line Company Pty Ltd are contributions from the company to be deposited into the
TT-Line Vessel Replacement Fund for the purpose of accruing funds for the future replacement of the TT-Line
passenger ferries.
9. The one-off payment received by the Tasmanian Government for resuming ownership of the Mersey Community
Hospital is to be transferred to Tascorp as a one-off equity contribution and will be invested by Tascorp, with an annual
dividend to be paid equal to the indexed operating costs of the Mersey Community Hospital from 2017-18 until
cessation of the Mersey Community Hospital Fund.
10. The increase in Income Tax Equivalents from Hydro Tasmania across the Budget and Forward Estimates period reflect
improved operating conditions and an increase in profitability following the Basslink outage and low inflow period during
2015-16. The recent significant increase in wholesale electricity prices was not factored into Hydro Tasmania's returns
to government in the 2017-18 Budget.
11. The decrease in Income Tax Equivalents from Tasmanian Networks Pty Ltd in 2017-18 is the result of reduced
profitability due to lower forecast regulated revenues.
12. The increase in Income Tax Equivalents from Tasmanian Ports Corporation Pty Ltd across the Budget and Forward
Estimates period reflects the progressive return to profitability as the community asset maintenance program
concludes and forecast freight volumes increase.
13. Income Tax Equivalents for TT-Line Company Pty Ltd across the Budget and Forward Estimates period are driven by
expected movements in the exchange rate which affect the valuation of the vessels and no Income Tax Equivalents
are expected from 2020-21 due to the application of a shipping income tax exemption.
General Government Revenue
99
Other Revenue
Other Revenue is anticipated to be $177.7 million in 2017-18, an increase of $23.9 million above the
2016-17 Budget of $153.8 million.
Table 5.10 lists the sources of Other Revenue.
Table 5.10:
Other Revenue1
2016-17)
Mineral Royalties2
Regional Water Authority Licence Fees
2017-18)
2018-19)
2019-20)
2020-21)
Forward)
Forward)
Forward)
Budget)
Budget)
Estimate)
Estimate)
Estimate)
$m)
$m)
$m)
$m)
$m)
20.3)
41.1)
38.8)
36.3)
34.5)
2.3)
2.3)
2.3)
2.3)
2.3)
25.9)
27.2)
27.5)
27.8)
27.0)
Other Revenue by Agency
Education
Finance-General3
3.6)
10.2)
3.6)
3.6)
3.6)
Health and Human Services
27.5)
27.0)
27.2)
27.8)
28.2)
Justice
22.7)
23.7)
26.4)
24.5)
24.9)
Police, Fire and Emergency Management
11.2)
10.8)
10.6)
10.0)
10.0)
Premier and Cabinet
1.7)
1.8)
1.8)
1.8)
1.8)
Primary Industries, Parks, Water and Environment
1.5)
2.3)
2.3)
2.3)
2.3)
State Fire Commission
1.4)
1.4)
1.5)
1.5)
1.5)
State Growth
2.0)
3.2)
2.0)
2.0)
2.0)
Treasury and Finance
Tasmanian Health Service4
Other5
TOTAL OTHER REVENUE
1.3)
1.4)
1.3)
1.0)
1.0)
30.6)
22.4)
22.4)
21.7)
21.7)
1.7)
2.7)
2.5)
2.5
2.6)
153.8)
177.7)
170.1)
165.2)
163.5)
Notes:
1. The information provided in this section may differ from Other Revenue estimates for each agency in Government
Services Budget Paper No 2 due to the elimination of inter-agency transactions during the consolidation process.
2. The increase in Mineral Royalties across the Budget and Forward Estimates reflects a rise in mineral prices, particularly
iron ore, based on advice from Mineral Resources Tasmania.
3. The increase to revenue to Finance-General in 2017-18 primarily reflects the State's current estimate pursuant to
property catastrophe insurance for covered items damaged during the June 2016 flood event.
4. The decrease in Tasmanian Health Service in 2017-18 is primarily due to the completion of the Training More Specialist
Doctors initiative, which was funded by the Australian Government through the medical professional colleges.
5. Other includes: The Office of the Director of Public Prosecutions, Inland Fisheries Service, Ministerial and
Parliamentary Support, Office of the Ombudsman, Royal Tasmanian Botanical Gardens, Tasmanian Audit Office and
Tourism Tasmania.
100
General Government Revenue