2017-18 budget paper 4: chief minister, treasury and ... web view2017-18, budget, cmtedd, chief...

ContentsCHIEF MINISTER, TREASURY AND ECONOMIC DEVELOPMENT DIRECTORATE.........................1

Purpose................................................................................................................................ 1

201718 Priorities..................................................................................................................2

Estimated Employment Level...............................................................................................4

Strategic Objectives and Indicators......................................................................................4

Output Classes....................................................................................................................17

Accountability Indicators....................................................................................................32

Changes to Appropriation..................................................................................................56

Summary of Chief Minister, Treasury and Economic Development Directorate 201718 Infrastructure Program.......................................................................................................72

Financial Statements – Controlled (GGS)...........................................................................76

Financial Statements – Territorial (GGS)............................................................................89

ACT COMPULSORY THIRD-PARTY INSURANCE REGULATOR – STATEMENT OF INTENT.......107

ACT COMPULSORY THIRD-PARTY INSURANCE REGULATOR.................................................109

Purpose............................................................................................................................ 109

Nature and scope of activities..........................................................................................109

2017-18 priorities and next three financial years.............................................................112

Estimated employment level............................................................................................112

Key performance indicators for 2017-18 to 2020-21.......................................................114

Assessment of performance against 2016-17 objectives.................................................115

Monitoring and reporting.................................................................................................116

Financial Arrangements....................................................................................................117

Financial Statements........................................................................................................117

ACT GAMBLING AND RACING COMMISSION – STATEMENT OF INTENT..............................123

ACT GAMBLING AND RACING COMMISSION........................................................................125

The Gambling and Racing Commission Board..................................................................125

201718 Budget Statements i Chief Minister, Treasury and Economic Development Directorate

The Commission’s relationship with Access Canberra......................................................126

Purpose............................................................................................................................ 126

Nature and Scope of Activities.........................................................................................127


Estimated employment level............................................................................................130

Strategic Objectives and Indicators..................................................................................130

Output Classes (Controlled GGS)......................................................................................133

Accountability Indicators..................................................................................................134

Changes to Appropriation................................................................................................135




ACT INSURANCE AUTHORITY – STATEMENT OF INTENT......................................................143

ACT INSURANCE AUTHORITY................................................................................................145

Purpose............................................................................................................................ 145



Estimated employment level and employment profile....................................................148






CANBERRA INSTITUTE OF TECHNOLOGY – STATEMENT OF INTENT.....................................165

CANBERRA INSTITUTE OF TECHNOLOGY..............................................................................167

Purpose............................................................................................................................ 167

Nature and Scope of Activities........................................................................................167

2017-18 Priorities.............................................................................................................169

201718 Budget Statements ii Chief Minister, Treasury and Economic Development Directorate

CIT Training Profile and Associated Items........................................................................170

Monitoring and Reporting................................................................................................171

Estimated Employment Level and Employment Profile...................................................171


Output Classes..................................................................................................................174


Key Performance Indicators for 2017...............................................................................175

Performance Measure Definitions...................................................................................175

Assessment of Performance Against 2016-17 Objectives................................................176





Calendar Year Financial Statements.................................................................................186

CIT SOLUTIONS PTY LTD.......................................................................................................195

Purpose............................................................................................................................ 195

2017-18 Priorities.............................................................................................................195

Estimated Employment Level...........................................................................................195




CULTURAL FACILITIES CORPORATION – STATEMENT OF INTENT.........................................203

CULTURAL FACILITIES CORPORATION..................................................................................205

Purpose............................................................................................................................ 205

Nature and Scope of Activities.........................................................................................205

2017-18 Priorities and Next Three Financial Years...........................................................207

Estimated Employment Level and Employment Profile...................................................208


201718 Budget Statements iii Chief Minister, Treasury and Economic Development Directorate

Output Classes..................................................................................................................210



Summary of 2017-18 Cultural Facilities Corporation Infrastructure Program..................213

Strategic Asset Management Plan....................................................................................213




ICON WATER LIMITED..........................................................................................................221

Purpose............................................................................................................................ 221

2017-18 Priorities.............................................................................................................221




INDEPENDENT COMPETITION AND REGULATORY COMMISSION – STATEMENT OF INTENT............................................................................................................................................. 231

INDEPENDENT COMPETITION AND REGULATORY COMMISSION.........................................233

Purpose............................................................................................................................ 233







Financial Statements – Controlled (GGS).........................................................................239

LIFETIME CARE AND SUPPORT FUND...................................................................................245

Purpose............................................................................................................................ 245

2017-18 Priorities.............................................................................................................245


201718 Budget Statements iv Chief Minister, Treasury and Economic Development Directorate


Output Classes (Territorial)..............................................................................................246


Financial Statements – Territorial (GGS)..........................................................................248

SUPERANNUATION PROVISION ACCOUNT...........................................................................255

Purpose............................................................................................................................ 255

2017-18 Priorities.............................................................................................................255







TERRITORY BANKING ACCOUNT...........................................................................................267

Purpose............................................................................................................................ 267

2017-18 Priorities.............................................................................................................267






APPENDIX A: DISCONTINUED AGENCY – LAND DEVELOPMENT AGENCY.........................279

Purpose............................................................................................................................ 279


Assessment of Performance Against 2016-17 Objectives................................................280

Financial Statements – Controlled (PTE)..........................................................................284

201718 Budget Statements v Chief Minister, Treasury and Economic Development Directorate

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201718 Budget Statements vi Chief Minister, Treasury and Economic Development Directorate

CHIEF MINISTER, TREASURY AND ECONOMIC DEVELOPMENT DIRECTORATE

PurposeThe Chief Minister, Treasury and Economic Development Directorate (CMTEDD) leads the public sector and works collaboratively both within government and with the community to achieve positive outcomes.

As a central agency, CMTEDD provides strategic advice and support to the Chief Minister, the Directorate’s Ministers and the Cabinet on policy, economic and financial matters, service delivery, whole of government issues and intergovernmental relations. The Directorate facilitates the implementation of government priorities and drives many initiatives, including the city vision, strengthening relations with NSW, and the Office of LGBTIQ affairs. The Directorate also leads the strategic direction for the ACT Public Service (ACTPS), to ensure that it is well positioned to perform its role.

CMTEDD continues its focus on creating a one-government approach to the delivery of services to the people of the ACT along with the critical importance of ensuring that economic development is at the centre of government policy deliberations.

The Directorate provides advice to the ACT Government and ACT agencies on the Territory’s budget and financial management, economic and revenue policy, infrastructure financing, federal financial relations, workers’ compensation policy, procurement and capital works. It is also responsible for collecting and managing taxation revenue and managing the Territory’s financial assets and liabilities including superannuation liabilities and investments. Shared Services provides financial, information and communication technology (ICT) and human resources support across government. Through Access Canberra the Directorate aims to make it easier for community members to interact with the ACT Government.

The Directorate provides advice, support and project delivery for the digital transformation of government services, and ensures alignment of government ICT and digital priorities and initiatives across the ACTPS.

The Directorate facilitates business development and new investment, tourism and events, sport and recreation and arts, often in coordination with the private sector, to increase the economic performance of the ACT. It works with the higher education and research sector to promote capabilities in areas such as cyber security, the space and spatial economy, sports technology, health innovation, agriculture and environmental sciences, ICT and e-government, and international education. It is responsible for the provision and overall management of vocational education and training in the Territory.

201718 Budget Statements 1 Chief Minister, Treasury and Economic Development Directorate

201718 PrioritiesStrategic and operational priorities for CMTEDD in 201718 include:

creating, leading and fostering an innovative and responsive approach across all directorates to strengthen and diversify the ACT economy;

supporting the ACT Government to progress key policy reforms in areas including housing affordability, public transport, regulatory simplification and social inclusion;

guiding cultural change across government in order to achieve greater collaboration and innovation in the delivery of the ACT Government’s priorities;

conducting a community engagement reform project to help drive change across the ACT public service and better meet the needs of the community in terms of when, how and on what they are engaged;

leading whole of government initiatives to strengthen public sector capability and governance;

working with the Commonwealth Government to propose a City Deal for the Canberra Region, focussing on bringing together both levels of government, the private sector and the community, to provide a coordinated investment plan for the city;

coordinating the development of the Government’s Smart City Strategy to connect citizens more directly with the city and Government through technology and smart city platforms and to deliver better outcomes for the city;

strengthening regional collaboration with NSW through working together on cross-border planning and service delivery, freight, and domestic and international tourism opportunities;

preparing the 2017-18 Budget Review, the 2018-19 Budget and Territory’s consolidated financial statements;

improving work health and safety and return to work outcomes for injured employees;

building on the Digital Canberra initiatives to grow Canberra’s digital capability;

continue to better connect business and community to government through public service innovation;

focusing on strengthening the capability of the ACTPS in sophisticated methods of infrastructure and capital works planning and project delivery;

expanding the significant program of reform of procurement policies and procedures, to secure greater value for money for the Territory in the purchase of goods and services;

continuing to improve the maturity of ACTPS procurement and capital works delivery, including its focus on local industry;


working with the private sector to grow its contribution to the Territory’s economy through a range of programs and approaches focused on increasing business innovation, trade development, private investment and new job opportunities;

supporting initiatives to address the low proportion of females in male dominated, traditional trades, and assisting mature workers to up-skill and re-skill;

working towards an increase in exports, growth in the ACT’s tertiary education sector, increased foreign investment and more international visitors to Canberra;

pursuing a strong economic development relationship with the research, higher education and training sectors;

supporting collaborative projects with our institutions to build capability in key and emerging sectors such as space, spatial and satellites, cyber security, sports technology, health innovation, ICT and e-government and the agri-tech and environmental sciences;

implementing the 2020 Tourism Strategy for the ACT, in conjunction with industry, with the aim of growing overnight visitor expenditure from the current value of $1.9 billion to $2.5 billion by 2020;

continuing to attract new events to the Territory’s venues to increase attendance, activities and participation;

contributing to the health and social wellbeing of the community through targeted programs that continue to support the ACT’s high levels of sport and recreation participation;

implementing the ACT Events policy, including supporting the events sector, managing the ACT Event Fund and delivering a suite of events including Floriade, Enlighten, New Year’s Eve and the Canberra Balloon Spectacular;

implementing the 2015 Arts Policy, including supporting artists and arts organisations, transitioning organisations to the Kingston Arts Precinct, supporting Aboriginal and Torres Strait Islander arts and culture, continuing strong community engagement and supporting whole of community access to the arts;

delivering a 10 year Strategic Direction for the National Arboretum Canberra, which reflects its unique role in conservation, tourism events, recreation, culture and research;

strengthening the commercial basis of the event venues managed by the ACT government (Venues Canberra);

oversighting the implementation of the ACT reportable conduct scheme which will improve the safeguarding of children within our community;

delivering a strategy to lead and coordinate community and whole of Government promotion of Canberra as Australia’s most LGBTIQ friendly city; and

working towards greater centralisation in the delivery of property services for ACT government directorates and agencies.


Estimated Employment Level

Table 1: Estimated Employment Level

201516Actual

Outcome1

201617Budget2

201617Estimated Outcome1

201718Budget2

Staffing (FTE) 2,423 2,431 2,3763 2,3424

Note(s):1. These figures relate to 30 June staffing levels.2. These figures relate to estimated average annual staffing figures.3. The difference between the 2016-17 estimated outcome and the 2016-17 Budget is primarily due to the transfer of

staff of the Asbestos Response Taskforce from the Chief Minister, Treasury and Economic Development Directorate (CMTEDD) to the Environment, Planning and Sustainable Development Directorate (EPSDD) following Administrative Arrangements 2016 (no 4).

4. The difference between the 2017-18 Budget figure and the 2016-17 estimated outcome is primarily due to staff being transferred out of CMTEDD: sportsground operations to Transport Canberra and City Services Directorate; and land functions to EPSDD and the proposed City Renewal Authority and Suburban Land Agency.

5. All figures exclude ACT Insurance Authority, Land Development Agency, Independent Competition and Regulatory Commission, and Superannuation Provision Account staff.

6. Due to anticipated Administrative Arrangements associated with the creation of the Suburban Land Agency and the City Renewal Authority, and transfer of functions to EPSDD, these figures are indicative only and subject to final structural arrangements.

Strategic Objectives and Indicators

Strategic Objective 1

Provision of high quality policy advice and support to the ACT Government, including coordinated and integrated policy development and service delivery across government agencies

Effective delivery of government policy and objectives requires coordination, cohesion and alignment of efforts across the ACT Public Service (ACTPS). The Directorate leads and coordinates whole of government strategy and policy development. This includes:

leadership of new government initiatives and strategies;

proactive engagement with directorates on key policy or service issues, including providing advice from a whole of government perspective;

leading and coordinating regulatory reform and red tape reduction;

supporting the Chief Minister’s proactive engagement in intergovernmental fora, including the Council of Australian Governments; with the NSW Premier on cross border issues; and the Canberra Region Joint Organisation;

ensuring that advice to the Chief Minister and Cabinet is evidence based, timely, accurate, robust and covers essential issues succinctly, clearly and in sufficient detail;

promoting inter-directorate cooperation and outcomes through directorate committees and ongoing arrangements such as the Strategic Board, and supporting the across government Policy Council and establishment of strategic taskforces;


providing whole of government advice on recordkeeping to support efficient and accountable government, including by undertaking targeted reviews of practice and performance; and

providing services and initiatives that make ACT government archives available to the public.


Government supported in the delivery of responses to urgent and complex emerging priorities

The Directorate is flexible and agile in responding to urgent and emerging government priorities, through consultation with other agencies, leadership of cross agency and joint community taskforces and active participation in taskforces and committees led by other directorates.


A more agile, responsive and innovative public service with increased capability to deliver on government priorities

The ACTPS needs to have a workforce with the requisite skills, capacity and flexibility to deliver quality services for the community and to take the Territory forward.

To address workforce challenges into the future, the Directorate is taking a lead role in developing high-performing public servants, engendering a respectful and inclusive working environment and encouraging consistency in people management throughout the ACTPS. CMTEDD also actively reviews and updates its Service wide policies to ensure the ACT Government maintains a modern, adaptable employment framework.

Strategic Indicator 3a: Separation Rate.

Table 2: Separation Rate

Strategic Indicator 2017-18 Estimated Outcome Long Term TargetSeparation Rate 8% Between 6 and 8%


Strategic Indicator 3b: Workers’ Compensation Claims resulting in work absence of one week or more, are kept to a minimum.

Table 3: Workers’ Compensation Claims

Strategic Indicator 2017-18 Estimated Outcome Long Term TargetIncidence of workers’ compensation claims resulting in work absence of one week or more

5 claims per 1,000 FTE 4 claims per 1,000 FTE


Economic growth and opportunity, social inclusion and an attractive and liveable urban environment

The Directorate will support growth and opportunity by supporting diversification and greater innovation in the ACT economy.

The Directorate will enable our skilled community to contribute to the economic prosperity and social engagement of our city, through vocational education and training programs that respond to identified areas of skills needs, and target those experiencing disadvantage.

The Directorate will support leadership and collaboration in key sectors that have the capacity for long term wealth creation and employment. With international research showing that six per cent of businesses are responsible for more than half of employment growth, the Directorate will also support innovation focused businesses with the capacity for scale-based growth and the ability to expand and headquarter in Canberra. A diversified innovative economy will not only grow faster, but place it in a stronger position to weather shocks from the Commonwealth Budget cycle.

The downstream opportunities from direct international flights to Singapore and Wellington are also significant, bringing two highly complementary city economies in close alignment with Canberra’s. The Government will leverage these new economic relationships through trade and investment facilitation programs and greater knowledge transfer through our people and our institutions.

The Directorate will foster the growth of the community sector through reducing red-tape for our health and social care enterprises as the National Disability Insurance Scheme (NDIS) drives an expansion of this industry.

The Directorate will foster urban renewal by activating and reinvigorating our city and town centres, and make Canberra an even better place to live, work and visit. The creation of high-quality public spaces will promote people’s health, happiness and well-being and shape the natural and built environment to improve social interaction and improve our community’s quality of life.


Strategic Indicator 4a: Growth in the Value of Tourism.

Tourism is a key driver of the ACT economy. Tourism Research Australia’s State Tourism Satellite Account results show tourism contributed around $2 billion in Gross State Product (which includes expenditure revenue from both domestic and international overnight visitors as well as daytrip visitors) and supported an estimated 16,400 jobs. The Directorate will continue to implement marketing and development programs that aim to increase the economic return from tourism visitation.

The ACT Government and tourism industry has set a goal of growing overnight visitor expenditure to $2.5 billion by 2020. Tourism 2020 progress is measured using year ending December overnight expenditure figures each year until December 2020. Total combined domestic and international overnight expenditure for the year ending December 2016 shows the ACT is performing at the upper end of its Tourism 2020 range at $1.9 billion (Figure 1). National performance (Figure 2) remains closer toward the lower range target of $115 billion.

Figure 1: ACT Tourism 2020 progress: combined international and domestic overnight expenditure vs. T2020 range goals - year ending December 2016

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

ACT Tourism 2020 ProgressInternational and Domestic Overnight Expenditure

$2.2b

$2.5b

$1.1BYE Dec-09

$1.4BYE Dec-10 $1.4B

YE Dec-11$1.4B

YE Dec-12

$1.5BYE Dec-13

$1.4BYE Dec-14

$1.7BYE Dec-15

$1.9BYE Dec-16

T2020 Setting The Foundation Seeing The Results Looking Beyond 2020NLTS: 2020

Potential


Figure 2: National Tourism 2020 progress: combined international and domestic overnight expenditure vs. T2020 range goals – year ending December 2016

T2020 Setting The Foundation Seeing The Results Looking Beyond 2020NLTS: 2020 Potential

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

National Tourism 2020 ProgressInternational and Domestic Overnight Expenditure

$70.0BYE Dec-09

$71.8BYE Dec-10

$74.5BYE Dec-11

$77.2BYE Dec-12

$80.4BYE Dec-13

$85.5BYE Dec-14

$94.5BYE Dec-15

$101.1BYE Dec-16

$115b

$140b

Strategic Indicator 4b: Growth in Innovation, Trade and Investment.

The Government’s objective is to support private sector growth, diversification and jobs by:

fostering the right business environment;

supporting business investment; and

accelerating business innovation.

The Government’s expectation is that over the medium to long term, the Government’s business development strategy Confident and Business Ready: Building on Our Strengths will work in concert with other aligned strategies, initiatives and programs, towards strong growth in the ACT’s private sector and measurable diversification in its economy.


Figure 3: Gross value added to ACT economy – all non-public sector industries

Source: ABS Catalogue No. 5220.0


Figure 4: Increasing Measures of ACT Goods and Services Exports

Source: ABS Catalogue No. 5220.0

Strategic Indicator 4c: Higher than National Average Participation in Sport and Physical Recreation.

The benefits of physical activity are widely recognised and are consistent with the ACTIVE 2020 objective to increase participation in competitive, non-competitive and social sport and recreation activities at all levels. It provides a blueprint upon which sport and recreation will be nurtured and promoted over the period to 2020.


Figure 5: Participation Rate for Adults in Sport and Physical Recreation

Source: AusPlay Participation data for the sport sector (21 December 2016)Note(s):1. 2016-17 represents first year of data report under new data source for sport and physical recreation participation.

The previous ABS data set has been discontinued. Relates to persons aged 15 years or over who participate in sport and physical activity at least once a week.


Figure 6: Participation Rate for Children in Sport and Physical Recreation

Source: AusPlay Participation data for the sport sector (21 December 2016)Note(s): 1. 2016-17 represents first year of data report under new data source for sport and physical recreation participation.

The previous ABS data set has been discontinued. Relates to persons aged 5 - 14 years who participated in organised sport and physical activity outside of school hours at least once per week.


Managing the public finances appropriately and assisting the government to maintain a strong balance sheet

The Government’s fiscal strategy focuses on managing the public finances of the Territory in a rigorous and prudent manner over the longer term, and establishes an objective of achieving an operating balance over time by offsetting temporary deficits with surpluses in other periods.


Strategic Indicator 5a: General Government Sector Headline Net Operating Balance.

The General Government Sector (GGS) Headline Net Operating Balance in 2016-17 is a deficit of $182.0 million, or a deficit of $94.3 million excluding the superannuation liability valuation adjustment that was included in the budget estimates for the first time this year. The forecast is for a return to broad balance in 2018-19.

Figure 7: General Government Sector – Headline Net Operating Balance Forecast


Strategic Indicator 5b: Standard & Poor’s credit rating.

Standard & Poor’s Ratings Services assesses the Territory’s credit rating each year. The Directorate assists the Government to maintain this credit rating, while allowing short term responsiveness to economic conditions, through the provision of sound policy advice and prudent financial management.

The Territory currently has a AAA credit rating, the highest possible credit rating.

Strategic Indicator 5c: Net financial liabilities to Gross State Product (GSP) ratio.

The ratio for the 2016-17 Budget continues to remain broadly in line with other AAA rated jurisdictions.

The ratios in the chart below for all jurisdictions are based on each jurisdiction’s most current budget documentation. Nominal GSP has also been calculated based on this information. In some instances assumptions based on growth forecasts have been applied.

Figure 8: Net Financial Liabilities to Gross State Product (GSP) Ratio



Efficient and effective operations of government enabled by the provision of high quality corporate services to the ACT Government and its agencies

The Administrative Arrangements changes effective from 1 July 2017 will include the bringing together, organisationally, of the business units responsible for providing corporate services to the ACT government and its agencies. These units include Shared Services (covering finance and payroll, HR services and ICT infrastructure and services), Capital Works delivery, Goods and Services Procurement, ACT Property Group and insurance services through the ACT Insurance Authority. The objective will be to drive a cohesive, customer service culture and to exploit synergies in service delivery, towards an outcome of enabling efficient and effective delivery of services to the ACT community. The development of strategic indicators for this new focus will be one of the tasks of this newly created organisational group within Treasury.


Improved ‘One Government’ communications and community engagement

Strategic Indicator 7a: Ensure the community is aware of the delivery of government priorities, services and major projects.

An indicator of the effectiveness of communications mechanisms of government is the community’s perception of whether they are informed on important priorities, services and major projects.


Figure 9: Percentage of the Community who feel informed on government priorities, services and major projects

Source: ACT Government Communications research, JWS Research, 2015 and Orima, 2017


Digital transformation providing enhanced infrastructure and services for the community

Technology is transforming the way people interact with each other and the world around them. The Directorate is leading the transformation to Digital, providing opportunities and support for all directorates to enhance quality, innovation, agility and red-tape-reduction in the delivery of services to citizens, businesses and community groups.

The Directorate is leading the development of the Government’s Smart City Strategy (a whole of government policy) to connect citizens more directly with the city and Government through technology and smart city platforms and to deliver better outcomes for the city.

The strategy will frame delivery of the Government’s Smart City agenda as a City Deal is further developed, and expand our smart city infrastructure, services, citizen engagement and digital transformation.



Superior customer and regulatory services for a safe and vibrant community

Access Canberra was established to provide the appropriate level of community protection while not unnecessarily hindering businesses from flourishing. Access Canberra shapes the delivery of services around businesses, community groups and individuals seeking to engage with the ACT Government to enable a ‘no wrong door’ approach. Access Canberra aims to set a new benchmark for integrated and seamless service; where staff work together with the community while still supporting the appropriate level of community protection.

Output Classes

Total Directorate: Chief Minister, Treasury and Economic Development Directorate

Table 4: Chief Minister, Treasury and Economic Development Directorate

2016-17 2017-18Estimated Outcome Budget

$'000 $'000

Total Cost1, 2 669,509 659,552Controlled Recurrent Payments2 329,183 335,810

Note(s):1. Total cost includes depreciation and amortisation of $69.520 million in 201617 and $56.121 million in 201718.2. The cumulative Total Cost and Controlled Recurrent Payments values included in the Output Class tables below will

add up to more than the equivalent amounts shown in the Directorate’s Total Cost and Controlled Recurrent Payments above due to intra-directorate eliminations.

Output Class 1: Government Strategy

Table 5: Output Class 1: Government Strategy


$'000 $'000

Total Cost1 28,037 33,036Controlled Recurrent Payments 22,698 26,763

Note(s):1. Total cost includes depreciation and amortisation of $1.026 million in 201617 and $1.406 million in 201718.

Output 1.1: Government Policy and Reform

Provision of advice and support to the Chief Minister, the Head of Service and the Director-General on strategic policy, including high priority reforms and effective delivery of government policies and priorities.


Government Policy and Reform will:

provide ongoing advice to the Chief Minister and the ACT Government in relation to whole of government policy development and priorities, and the implementation of key government decisions;

support the Head of Service as the Chair of the Strategic Board and provide secretariat services to the Board;

lead, coordinate and monitor policy and project initiatives to promote across government outcomes and delivery;

lead and coordinate the ACT Government’s participation in the COAG reform agenda and the Council of Australian Federation (CAF), and its engagement with regional leaders and local governments, including through the Canberra Region Joint Organisation;

provide advice and support to Cabinet and the Manager of Government Business in the Legislative Assembly;

provide whole of government advice on recordkeeping to support efficient and accountable government, including by undertaking targeted reviews of practice and performance;

provide services and initiatives that make ACT government archives available to the public;

establish the Office of LGBTIQ Affairs, and support the Ministerial Advisory Council on LGBTIQ; and

work with the Commonwealth Government to deliver a City Deal for the Canberra Region.

Table 6: Output 1.1: Government Policy and Reform


$'000 $'000

Total Cost 12,590 10,678Controlled Recurrent Payments 11,146 9,476

Output 1.2: Workforce Capability and Governance1

Provision of an employment and policy framework to support a professional, skilled and accountable public service that is responsive to the ACT Government and the community; and management of whole of government capacity building programs.

Workforce Capability and Governance will:

develop and review whole of government employment policies, regulations and standards and provide industrial relations services to support this framework;


support and coordinate workforce planning and change management across government, including through whole of government learning, development and capability programs;

develop and implement ACTPS capacity building programs, including those for graduates, Aboriginal and Torres Strait Islanders, and people with disabilities;

maintain and monitor whole of government ethics and accountability frameworks; and

support the Public Sector Standards Commissioner and the Remuneration Tribunal.

Table 7: Output 1.2: Workforce Capability and Governance


$'000 $'000


Note(s):1. This Output was previously Output 1.2 Public Sector Management.

Output 1.3: Coordinated Communications and Community Engagement

Provision of communications support and protocol services to the ACT Government and community.

Coordinated Communications and Community Engagement will:

provide information and protocol services to the Chief Minister;

provide whole of government advice and assistance on strategic communications activities and community engagement policies and practices; and

provide whole of government communications advice and support, including for emergency response requirements.

Table 8: Output 1.3: Coordinated Communications and Community Engagement


$'000 $'000


Output 1.4: Digital Strategy1

Provision of advice, support and project delivery for the digital transformation of government services.

Digital Transformation for Government will drive digital transformation of government services and provide whole of government advice and assistance on digital strategy development and implementation.


Table 9: Output 1.4: Digital Strategy


$'000 $'000

Total Cost 0 3,053Controlled Recurrent Payments 0 2,511

Note(s):1. New Output.

Output Class 2: Access Canberra1

Table 10: Output Class 2: Access Canberra


$'000 $'000


Note(s):1. This Output Class was previously Output Class 3 Access Canberra.2. Total cost includes depreciation and amortisation of $2.864 million in 201617 and $3.177 million in 201718.

Access Canberra was established to provide the appropriate level of community protection while not unnecessarily hindering businesses from flourishing. Access Canberra shapes the delivery of services around businesses, community groups and individuals seeking to engage with the ACT Government to enable a ‘no wrong door’ approach. Access Canberra aims to set a new benchmark for integrated and seamless service; where staff work together with the community while still supporting the appropriate level of community protection.

Output Class 3: Economic Development1

Table 11: Output Class 3: Economic Development


$'000 $'000


Note(s):1. This Output Class was previously Output Class 9 Economic Development.2. Total cost includes depreciation and amortisation of $41.327 million in 201617 and $0.783 million in 201718.

Output 3.1: Innovation, Trade and Investment1

Innovate Canberra delivers programs, initiatives and business policy advice that promote the economic development of the broader capital region, including universities, research organisations, commercialisation entities, business organisations and other government agencies.


Innovate Canberra’s activities are aimed at:

accelerating the commercialisation of locally generated intellectual property, programs to encourage internationalisation of ACT businesses through trade and investment; and

enhancing the innovation capability of the private sector and its relationship with key institutions.

Innovate Canberra delivers the Skilled and Business Migration Program and participates in business and innovation policy forums, including Ministerial Councils and other national business, innovation and science infrastructure forums.

Table 12: Output 3.1: Innovation, Trade and Investment1


$'000 $'000


Note(s):1. This Output was previously Output 9.2 Innovation, Trade and Investment.

Output 3.2: VisitCanberra1

VisitCanberra creates and implements a range of innovative tourism marketing and development programs, in partnership with local industry, national bodies and institutions, which aim to support the Territory’s economic development through increased visitation to the ACT and region.

Table 13: Output 3.2: VisitCanberra


$'000 $'000


Note(s):1. This Output was previously Output 9.3 VisitCanberra.


Output 3.3: Sport and Recreation1

Sport and Recreation supports Canberra’s participation in organised sport and recreation through delivery of programs, facilities and pathways. As part of this it provides support services to local high performance athletes, administers grants and delivers education and training opportunities to maintain and enhance the capabilities of the community sport and recreation sector in the ACT.

Table 14: Output 3.3: Sport and Recreation


$'000 $'000


Note(s):1. This Output was previously Output 9.4 Sport and Recreation.

Output 3.4: Events1

Events manages, supports and delivers key signature events for the community including Floriade, Floriade NightFest, the Enlighten Festival, New Year’s Eve, Australia Day, Canberra Festival and the Canberra Nara Candle Festival.

Table 15: Output 3.4: Events


$'000 $'000


Note(s):1. This Output was previously Output 9.4 Sport and Recreation.

Output 3.5: Arts Engagement1

Implementing the ACT Arts Policy by developing engagement with the arts through participation and access, supporting great art and great artists, supporting and recognising the vitality of the Canberra Region arts ecology and engaging with Aboriginal and Torres Strait Islander arts and culture.

Table 16: Output 3.5: Arts Engagement


$'000 $'000


Note(s):1. This Output was previously Output 9.8 Arts Engagement.


Output 3.6: Higher Education, Training and Research1

Innovate Canberra works with the higher education and research sector to promote capabilities in areas such as cyber security, the space and spatial economy, sports technology, health innovation, agriculture and environmental sciences, ICT and e-government, and international education. Innovate Canberra is responsible for the provision and overall management of vocational education and training in the Territory. This includes administering, monitoring and auditing Territory and national funds for a variety of programs addressing skills development.

Table 17: Output 3.6: Higher Education, Training and Research


$'000 $'000


Note(s):1. New Output.

Output 3.7: Economic Development Strategy and Program Design (Discontinued)1, 2

Economic Development Strategy and Program Design develops and provides a range of strategic advice and legislation review and development services, to support the business units of the Directorate, specifically in relation to: business development, sport and recreation, tourism and events, arts and land development. It leads and coordinates the delivery of the ACT Government’s land supply strategy.

Table 18: Output 3.7: Economic Development Strategy and Program Design (Discontinued)


$'000 $'000

Total Cost 5,424 0Controlled Recurrent Payments 5,317 0

Note(s):1. This Output was previously Output 9.1 Economic Development Strategy and Program Design.2. In 2017-18 this Output will be reported in the Environment, Planning and Sustainable Development Directorate.

Output 3.8: Urban Renewal (Discontinued)1, 2

Urban renewal is a key priority of the ACT Government. Urban renewal will drive economic activity, improve the liveability of our city, build on the character of our communities and deliver sustainable development.


Table 19: Output 3.8: Urban Renewal (Discontinued)


$'000 $'000


Note(s):1. This Output was previously Output 9.9 Urban Renewal.2. In 2017-18 this Output will be reported in the Environment, Planning and Sustainable Development Directorate.

Output 3.9: Venues (Discontinued)1, 2

Venues promotes and manages major events at venues including GIO Stadium, Exhibition Park in Canberra, Manuka Oval, Stromlo Forest Park and the Canberra Business Event Centre. This output also includes management of the National Arboretum Canberra.3

Table 20: Output 3.9: Venues (Discontinued)


$'000 $'000


Note(s):1. This Output was previously reported in Output 9.5 Venues (the 2016-17 Budget Statement).2. This Output will be transferred to Output 9.2 Venues in 2017-18 (this Budget Statement).3. The National Arboretum Canberra was previously reported in Output 9.6 Events.

Output 3.10: Property Services (Discontinued)1, 2

Property Services covers the management of Territory-owned commercial buildings, government office accommodation, community/multipurpose buildings and leases commercial buildings on behalf of the Territory.

Table 21: Output 3.10: Property Services (Discontinued)


$'000 $'000


Note(s):1. This Output was previously Output 9.7 Property Services.2. This Output will be transferred to Output 9.1 Property Services in 2017-18 (this Budget Statement).


Output Class 4: Financial and Economic Management

Table 22: Output Class 4: Financial and Economic Management


$'000 $'000



Output 4.1: Economic Management

Provision of economic analysis and advice to the ACT Government and agencies; management of Federal financial relations; and provision of accounting, financial framework, and insurance policy advice.

Economic Management will:

monitor and advise on the state of the ACT economy;

undertake economic and fiscal modelling and revenue forecasting;

progress the implementation of Stage 2 tax reform initiatives;

monitor implementation of the Asset Recycling Initiative;

provide advice on economic policy, competition reform and industry sectoral matters, including economic regulation of water and energy markets;

coordinate the function and responsibilities provided under the Intergovernmental Agreement on Federal Financial Relations;

coordinate and contribute to Heads of Treasuries and Council on Federal Financial Relations processes and support the Heads of Treasury Accounting and Reporting Advisory Committee;

coordinate and contribute to ACT Government involvement with the Commonwealth Grants Commission;

progress reforms to the compulsory third party insurance arrangements in the ACT; and

advise and improve financial management frameworks and governance.


Table 23: Output 4.1: Economic Management


$'000 $'000


Output 4.2: Financial Management

Provision of analysis, monitoring and reporting on major projects, the financial performance of agencies and the Territory’s budget, to assist the ACT Government to achieve its policy objectives.

Financial Management will:

manage the preparation and presentation of the ACT Government’s annual budget, budget review and annual financial statements;

provide quarterly whole of government consolidated management reports;

report to external agencies including the Australian Loan Council, the Australian Bureau of Statistics and the Commonwealth Grants Commission;

provide advice to the ACT Government on financial and budget policy issues; and

review government programs and functions.

Table 24: Output 4.2: Financial Management


$'000 $'000


Output Class 5: Workforce Injury Management and Industrial Relations Policy

Table 25: Output Class 5: Workforce Injury Management and Industrial Relations Policy


$'000 $'000



Provide services focusing on health and safety risks arising from work and the relationship between employers and workers.

The Workforce Injury Management and Industrial Relations Policy will:


advise the ACT Government on workers’ compensation, work health and safety and industrial relations arrangements and make changes to the corresponding regulatory frameworks where directed by the Government;

provide whole of government return to work case management services to injured employees and their agencies;

provide advice to ACTPS directorates and agencies in relation to workers’ compensation and manage the relationship between Comcare and the ACT Government;

coordinate actuarial analysis of workers’ compensation performance and manage the apportionment of the Territory’s Comcare workers’ compensation premium;

develop and review whole of government work health and safety policies and provide work health and safety services to support the policy framework; and

coordinate the Territory’s consultative bodies for industrial relations regulation, workers’ compensation and work health and safety.

Output Class 6: Revenue Management

Table 26: Output Class 6: Revenue Management


$'000 $'000


Note(s):1. Total cost includes depreciation and amortisation of $0.039 million in 201718.

Revenue Management provides for the administration of the ACT Government’s taxation revenue.

The key outputs to be delivered include:

collecting taxation revenue in accordance with legislation;

providing high quality and timely advice to assist taxpayers in meeting their obligations;

processing objections to assessments and decisions, in accordance with timeframes published on the ACT Revenue Office website;

ensuring the integrity, consistency and effectiveness of the ACT’s taxation system through prioritised compliance programs and regular reviews of legislation; and

processing of concessions in accordance with legislation.


Output Class 7: Shared Services

Table 27: Output Class 7: Shared Services


$'000 $'000



Shared Services provides a range of ICT and corporate services, including infrastructure, applications support and development, ICT project services and tactical and transactional human resource and finance services to directorates and agencies.


services to government agencies as outlined in Shared Services ICT catalogue of services and affirmed through various service level and support agreements;

management of the whole of government data and communications network;

general service and help desk functions;

payroll and personnel services;

recruitment services;

records management and courier activities to government directorates;

monthly and annual financial reporting services;

accounts payable and accounts receivable functions;

general ledger, cash flow and fixed asset management;

administration of the Taxation Management Framework across the ACT Government;

production and lodgement of monthly Business Activity Statements and annual Fringe Benefits Tax Returns and the provision of taxation advice across the ACT Government;

provision of salary packaging services across the ACT Government; and

publishing services including multimedia, online, print and signage services.


Output Class 8: Infrastructure Finance and Capital Works1

Table 28: Output Class 8: Infrastructure Finance and Capital Works


$'000 $'000


Note(s):1. This Output Class has been renamed and was previously Output Class 8 Procurement and Capital Works (PCW). This

Output Class includes the Infrastructure Finance and Advisory function previously reported in Output Class 4 Financial and Economic Management, Capital Works Procurement previously reported in Output Class 8 PCW and part of Civil Infrastructure previously reported in Output Class 9 Economic Development.

2. Total cost includes depreciation and amortisation of $0.188 million in 201617 and $0.193 million in 201718.

Infrastructure Finance and Capital Works provides advice to government on major infrastructure projects, advises government on capital works procurement policies, administers a range of pre-qualification schemes and undertakes procurement activities on behalf of government directorates and agencies for infrastructure and capital works.


managing and delivering the majority of ACT Government funded capital works projects, including supporting the delivery phase of major projects;

supporting and advising on Public Private Partnership transactions, including procurement;

providing whole-of-life project transaction support;

supplier pre-qualification arrangements;

providing commercial support on the assessment of unsolicited proposals; and

coordination of Work Health and Safety Active Certification Policy for ACT Government construction sites.

Output Class 9: Property Services, Venues and Procurement1

Table 29: Output Class 9: Property Services, Venues and Procurement


$'000 $'000

Total Cost2 0 163,546Controlled Recurrent Payments 0 27,426

Note(s):1. New Output Class, which includes Outputs and part of Outputs previously reported in Output Classes 8 Procurement

and Capital Works and 9 Economic Development. The 2016-17 estimated outcome for the Outputs previously in Output Class 9 are reported in this Budget Statement in Output Class 3 Economic Development (Outputs 3.9 Venues (Discontinued) and 3.10 Property Services (Discontinued)).

2. Total cost includes depreciation and amortisation of $25.757 million in 201718.


Output 9.1: Property Services1

Property Services covers the management of Territory-owned commercial buildings, government office accommodation, community/multipurpose buildings, aquatic/leisure facilities and leases commercial buildings on behalf of the Territory.

Table 30: Output 9.1: Property Services


$'000 $'000


Note(s):1. New Output. This Output was previously Output 9.7 Property Services. The 2016-17 estimated outcomes for this

Output are reported in this Budget Statement in Output 3.10 Property Services (Discontinued).

Output 9.2: Venues1

Venues promotes and manages major events at venues including GIO Stadium, Exhibition Park in Canberra, Manuka Oval, Stromlo Forest Park and the Canberra Business Event Centre. This output also includes management of the National Arboretum Canberra.

Table 31: Output 9.2: Venues


$'000 $'000


Note(s):1. New Output. This Output was previously Output 9.5 Venues. The 2016-17 estimated outcomes for this Output are

reported in this Budget Statement in Output 3.9 Venues (Discontinued).

Output 9.3: Goods and Services Procurement1

Procurement undertakes procurement activities on behalf of government directorates and agencies for goods and services. It advises the Government on procurement and related construction industry policy, is responsible for the development and implementation of the Government’s procurement related policies and establishes and manages whole of government contracts.


procurement and associated risk management services to agencies;

the Government contracts register and electronic tendering system; and

driving the Smart Modern Strategic (SMS) Procurement initiative.


Table 32: Output 9.3: Goods and Services Procurement


$'000 $'000


Note(s):1. New Output. Goods and Services Procurement was previously part of Output 8.1 Procurement and Capital Works.

Output Class 10: Loose Fill Asbestos Insulation Eradication (Discontinued)1

Table 33: Output Class 10: Loose Fill Asbestos Insulation Eradication (Discontinued)2


$'000 $'000

Total Cost3 15,321 0Controlled Recurrent Payments 6,378 0

Note(s):1. This Output Class was previously Output Class 2 Loose-fill Asbestos Insulation Eradication, and transferred to the

Environment, Planning and Sustainable Development Directorate from 1 November 2016 under the Administrative Arrangements 2016 (No 4).

2. This Output was previously Output 2.1 Loose-fill Asbestos Insulation Eradication Scheme.3. Total cost includes depreciation and amortisation of $0.029 million in 201617 and $0.0 million in 201718.

The Asbestos Response Taskforce provides a coordinated and compassionate response to the lasting impacts of loose-fill asbestos in Canberra homes. It provides a single point of contact for those in the community affected by, or having concerns about, loose-fill asbestos. The Taskforce manages the delivery of the Loose-fill Asbestos Insulation Eradication Scheme. It also provides technical and regulatory advice to government and the community in relation to asbestos.


Accountability Indicators

Output Class 1: Government Strategy

Output 1.1: Government Policy and Reform

Table 34: Accountability Indicators Output 1.1

201617Targets

201617Estimated Outcome

201718Targets

a. Whole of government policy and project initiatives1

3 3 3

b. Regional partnerships and participation2 2 2 2c. Support for COAG and CAF meetings3 4 4 4d. Government Progress Report4 Jun 2017 Jun 2017 Jun 2018e. Cabinet and Strategic Board Support5 2 2 2f. Regulatory and process reform initiatives6 3 3 3g. iConnect Initiatives7 12 0 n/ah. Pre-election Preparation8 1 1 n/a

Note(s):1. This accountability indicator incorporates key government policy and project initiatives to be delivered by the

Directorate during the year. Initiatives currently scheduled for delivery are the Office of LGBTIQ; City Deals; and Behavioural Insights assessment. Scope, delivery and timing of initiatives may vary depending on emerging priorities that impact on resource availability.

2. This accountability indicator reflects the involvement in two key partnerships – implementation of initiatives under a memorandum of understanding with the NSW Government on regional cooperation (1 project) and involvement with regional councils through the South East Regional Organisation of Councils (1 project).

3. This accountability indicator covers briefing and support to the Chief Minister for meetings of COAG and CAF. This indicator is counted as complete on delivery of the briefing packages to the Chief Minister.

4. This accountability indicator relates to the ACT Government Progress Report on longer term strategic policy.5. This accountability indicator covers the annual cycle of secretariat support, including preparation and circulation of

submissions and papers, to Cabinet and to the ACT Public Service Strategic Board.6. This accountability indicator covers policy and project initiatives targeted at improving the effectiveness and efficiency

of regulation and processes to strengthen the delivery of government priorities. Initiatives currently scheduled for delivery are the Red Tape Reduction Amendment Bill 2018; evaluation of the ACT Taxi Industry reforms; and evaluation of the smart parking trial in Manuka. Scope, delivery and timing of initiatives may vary depending on emerging priorities that impact on resource availability.

7. Discontinued accountability indicator. This accountability indicator sought to capture the number of new services made available online to the community utilising the iConnect platform. A review of iConnect at the end of 2016 resulted in the program re-focusing its direction towards establishing online identity and access management as a shared platform for all directorates. A new iConnect accountability indicator for 2017-18 aligned to this program direction is included in Output 1.4 Digital Transformation for Government.

8. Discontinued accountability indicator. This accountability indicator related to the preparation of an incoming government brief, a major focus in the lead up to and during the caretaker period.


Output 1.2: Workforce Capability and Governance1


201617Targets


201718Targets

a. Conduct the annual whole of government Graduate Program2

1 0 1

b. Publish the State of the Service Report3 Oct 2016 Dec 2016 Oct 2017c. ACTPS Leadership and Development

Framework4Aug 2016 Aug 2016 2

d. Coordinate the whole of government Healthy Weight Initiative5

Jun 2017 Jun 2017 n/a

e. Regulatory reform of ACTPS Employment Framework and processes6

3 3 3

Note(s):1. This Output was previously Output 1.2 Public Sector Management.2. This accountability indicator covers the implementation of the ACTPS whole of government Graduate Program,

including the 2017 graduate intake, recruitment, selection and commencement of the 2018 intake, and planning for the 2019 intake. The indicator will be considered complete when the activities under the Program are undertaken.

3. This accountability indicator covers the publication of the annual State of the Service Report, which incorporates the ACT Public Sector Workforce Profile Report and the report on the implementation of the ACTPS Respect, Equity and Diversity Framework.

4. This accountability indicator covers the launch of a new framework for improving leadership capabilities across the ACTPS. In 2017-18 this involved a time based measurement. The measurement of this indicator changes in 2017-18 to a quantity based measurement. Work in 2017-18 will include the launch of the ADAPT (Align, Design, Analyse, Program and Transform) workforce planning toolkit and the updated panel of providers under the whole of government training calendar.

5. Discontinued accountability indicator. This indicator covered the ongoing coordination of the Healthy Weight Initiative. The Healthy Weight Initiative will be considered in the context of the development of the Preventativie Health Strategy.

6. This accountability indicator covers policies and projects targeted at improving the effectiveness and efficiency of regulation in relation to the ACTPS Employment Framework. Expected projects for 2017-18 relate to the completion of the negotiation of common terms and conditions of ACTPS enterprise agreements, implementation of the governance arrangements for the Reportable Conduct Scheme across the ACTPS and the review of whole of government policy regarding flexible and home based work.

Output 1.3: Coordinated Communications and Community Engagement


201617Targets


201718Targets

a. Annual numbers of ACT Government Digital Mail Service newsletters1

10 9 11

b. Annual number of ACT Government Our Canberra newsletters2

10 9 11

Note(s):1. This accountability indicator covers the total number of ACT Government messages distributed during the year to

subscribers of the ACT Government Digital Mail Service. In 2016-17 the Our Canberra service was not distributed during caretaker period.


2. The Our Canberra newsletter is distributed to all Canberra households during the year. Editions are published for the five main regions of Canberra, Belconnen, Central, Gungahlin, Tuggeranong and Woden/Weston Creek/Molonglo. In 2016-17 the Our Canberra newsletter was not distributed during caretaker period.

Output 1.4: Digital Strategy1


201617Targets


201718Targets

a. Digital Services Governance Committee initiatives complete2

n/a n/a 3

b. iConnect initiative3 n/a n/a 1c. Delivery of ACT Government contribution to

public data based hackathon4n/a n/a 1

Note(s):1. New Output.2. This accountability indicator covers outputs as determined by the Digital Services Governance Committee (DSGC). The

indicator is considered complete when the DSGC sign-off on the initiative.3. This accountability indicator was previously reported in Output 1.1 Government Policy and Reform. This

accountability indicator covers the establishment of the core iConnect digital capabilities to enable online identity and access management. The target is the identity capability that will be made available to assist directorates in providing digital services to citizens. The indicator is considered complete when documentation stating that the core identity capability has been established is noted by the Chief Minister.

4. A hackathon is a community-oriented event, bringing a large number of people together to use open data to uncover opportunities and solve problems that technology and access to open data (provided by the government and other sources) can reveal.

Output Class 2: Access Canberra

Output 2.1: Access Canberra1


201617Targets


201718Targets

a. Effective Service DeliveryNumber of Interactions with Access Canberra2 12 million 12 million n/aAverage cost per interaction3 $5.92 $5.75 n/a

b. Efficient Service DeliveryPercentage of Customers satisfied with Access Canberra4

90% 91% 90%

Percentage of services delivered online5 55% 63% n/ac. Doing Business in the ACT is easier

Percentage of the Canberra community satisfied with the ease of interacting with Access Canberra6

90% 95% 95%

d. Healthier and Safe CommunityNumber of inspections conducted by Access Canberra7

95,000 95,000 n/a

Compliance at time of inspection8 90% 94% n/a


201617Targets


201718Targets

Percentage of licence applications processed within service standard timeframes9

95% 92% n/a

e. Percentage of services available online10 n/a n/a 70%f. Percentage of services completed online11 n/a n/a 75%g. Reduction of regulatory burden on business

by undertaking risk-based coordinated inspection activities12

n/a n/a 80%

h. Average number of days to issue business authorisation or personal registration13

- for business authorisation n/a n/a 10 working days or less

- for personal registration n/a n/a 5 working days or less

i. Compliance rate during targeted campaign inspections14

n/a n/a 90%

j. Compliance activities: engage, educate, enforce15

n/a n/a Ratio:70:20:10

k. Average level of helpfulness after issuing a notice or before issuing a licence/authorisation16

n/a n/a 4.2 out of 5

Note(s):1. This Output was previously Output 3.1 Access Canberra.2. Discontinued accountability indicator. The number of interactions with Access Canberra was measured across the

financial year. This accountability indicator measured the number of interactions with the Canberra community by Access Canberra. Interactions can be a face to face, telephone, email, electronic feedback or online.

3. Discontinued accountability indicator. This accountability indicator was an annual measure of the effectiveness of Access Canberra in providing services to the Canberra Community. Average cost was the annual direct expenditure of Access Canberra divided by the number of interactions calculated in accountability indicator 1.a.

4. The customer satisfaction result is determined by the responses to an independent annual survey of the Canberra Community. The survey is a measure of the awareness, attitudes, behaviour and customer satisfaction of/with Access Canberra's corporate identity, channels and services.

5. Discontinued accountability indicator. This accountability indicator was an annual measure of the success of Access Canberra in supporting the Digital Canberra initiative. Services delivered online were defined as interactions that can be conducted (at least in part) via the internet/portals. Measurement was reported by both percentage of number of services and percentage of volume of services performed.

6. The satisfaction with ease of interacting result is determined by the responses to an independent annual survey of the Canberra Community. The survey is a measure of the awareness, attitudes, behaviour and customer satisfaction of/with Access Canberra's corporate identity, channels and services. One of the initiatives undertaken by Access Canberra is conducting joint inspections which have resulted in the ACT community finding it easier than expected to interact with Access Canberra.

7. Discontinued accountability indicator. This accountability indicator was an indication of the activities undertaken by Access Canberra to build industry and community awareness, capability and compliance. This was achieved annually through inspections under legislation administered by Access Canberra in order to maintain and enhance community confidence in available services. Inspections included inspections, audits and investigations.

8. Discontinued accountability indicator. This was a measure of annual compliance with relevant regulations, legislation etc. The result was based on a random sample of identified industries within Access Canberra.

9. Discontinued accountability indicator. This accountability indicator indicated the time taken to assess and issue licensing for regulated activities. The indicator was calculated annually and was calculated from receipt of complete and correct paperwork from applicant through to approval/issuance.

10. New accountability indicator. Services available online are defined as interactions that can be conducted (at least in part) via the internet/portals.

11. New accountability indicator. This accountability indicator measures the percentage of transactions completed online against the total number of transactions completed over the phone, in person and online.

12. New accountability indicator. This accountability indicator is an annual measure of the number of inspection activities focusing on more than one regulatory obligation for the business. Coordinated inspection activities reduce the regulatory burden on businesses by making inspections simpler, faster and less frequent.


13. New accountability indicator. This accountability indicator measures the average number of days it takes to issue business authorisations and personal registrations.

14. New accountability indicator. Initial rates of compliance are assessed against a predetermined set of criteria set for targeted inspection campaigns. Following the completion of the campaign compliance rates are again assessed to determine the percentage shift in compliance. This result will be reported annually.

15. New accountability indicator. This indicator sets a ratio for the engagement and education functions that are separate from Access Canberra exercising its enforcement powers against an industry, business or individual. Increasing efforts to educate and inform individuals and business and industries about their responsibilities and legal requirements leads to increased compliance rates, a reduction in complaints and the need for enforcement responses.

16. New accountability indicator. Feedback is collected from an on-going internal phone survey of randomly selected industry groups that have had a regulatory interface with Access Canberra. Results are collated using a helpfulness score: (1:5) 5 being greatest level of support and 1 the lowest.

Output Class 3: Economic Development

Output 3.1: Innovation, Trade and Investment1


201617Targets


201718Targets

a. Support for innovation start-ups and entrepreneurs- Innovation Connect (ICon) new client

connections250 50 50

- Innovation Connect (ICon) successful grant applications3

15 15 15

- Deliver targeted programs to support innovative start-ups4

3 3 3

- Satisfaction on the effectiveness of ACT Government programs and initiatives to support innovative start-ups through surveys of the CBR Innovation Network Board and the Innovation Community Forum5

>75% >75% >75%

b. Support development of key industry capability in the ACT innovation ecosystem- Deliver targeted programs to support

development of key industry capability in the ACT Innovation ecosystem6

4 4 4

- Satisfaction on the effectiveness of ACT Government programs and initiatives to support development of key industry capability in the ACT Innovation ecosystem through surveys of the CBR Innovation Network Board and Community Forum7

>75% >75% >75%

c. Invest Canberra- Trade Connect grants delivered8 30 40 30- Number of international trade and

investment campaigns and delegations93 3 3

- Number of lead responses generated from Invest Canberra program activity10

30 30 30


201617Targets


201718Targets

- Number of investment facilitation projects supported11

2 2 2

d. Skilled Migration Attraction and Facilitation- Employer Sponsored Nominated12 330 450 n/a- Skilled Independent Nominated13 500 720 n/a- Participation in the settlement support

program for ACT nominated migrants14>70% >70% n/a

- Average number of monthly visits to Canberra. Create Your Future website15

12,000 20,000 n/a

e. Funded training initiative administered within published timeframes16

100% 90.9% n/a

f. Registered training organisation audit reports provided within 30 days of completion of on-site audit17

100% 100% n/a

g. Total number of students undertaking vocational qualifications18

- All students 30,100 23,224 n/a- Aboriginal and Torres Strait Islander

students755 933 n/a

- Students with a disability 1,940 1,972 n/ah. Participation in vocational education and

training19

- All students (percentage) 8.2% 5.9% n/a- Aboriginal and Torres Strait Islander

students (percentage)15.5% 13.5% n/a

Note(s):1. This Output was previously Output 9.2 Innovation, Trade and Investment.2. This accountability indicator tracks the number of new client connections engaging with the Innovation Connect grant

program.3. This accountability indicator tracks the number of successful applications to the Innovation Connect grant program,

i.e. applications that the Innovation Connect Assessment Panel approve for funding support.4. Delivery of ACT Government programs to support start-ups (ie. newly created businesses, business intenders, business

models that propose innovative products or services that can demonstrate future growth potential). Target refers to CBR Innovation Network, ICon and Small Business Innovation Partnership (SBIP) programs.

5. Surveys of ACT Government programs to support start-ups. Surveys seek comment and views on the impact and effectiveness of ACT Government programs and initiatives to assist innovative start-ups within the ACT economy. Stakeholders surveyed are CBR Innovation Network Board and Innovation Community Forum.

6. Delivery of ACT Government programs to support key industry capability in the innovation ecosystem. Target refers to CBR Innovation Network, Data61, CollabIT and Screen Industry Support programs.

7. Surveys of ACT Government programs to support key industry capability in the innovation ecosystem. Surveys seek comment on the impact and effectiveness of ACT Government programs and initiatives to build capacity in key capability areas within the ACT economy. Stakeholders surveyed are CBR Innovation Network Board and Innovation Community Forum.

8. Number of Trade Connect grants awarded. The 2016-17 estimated outcome is expected to be 33% above Target which reflects an increased profile following the launch of the International Engagement Strategy.

9. Tracks the number of international trade and investment campaigns and delegations. This is an ongoing program and the indicator is considered complete at the end of the reporting period.

10. Number of trade and investment lead responses identified and qualified. A lead is defined as the identification of an entity that has expressed an interest and has the authority and capacity to invest in the ACT.

11. Number of investment facilitation projects supported (ie. leads that develop into supported projects). Year end outcome of 2 demonstrates 2 proposals were supported in providing a detailed business case for Government to consider. Many of the facilitated leads are projects that have taken significant resources and due diligence to progress to Government consideration. A decision by an investor to respond to an opportunity and have that realised as a development can take several years.


12. Tracks ongoing program delivery within Commonwealth Government (Department of Immigration and Border Protection) policy parameters based on a three-year average. The 2016-17 estimated outcome is higher than the Target as employers drive demand for this measure, and there has been greater than expected interest from employers seeking to nominate overseas skilled workers which coincides with other signs of a strengthening economy and low unemployment figures. In 2017-18 this accountability indicator will be reported in Output 3.6 Higher Education, Training and Research. The 2017-18 target is based on an estimated outcome for this activity based on achievement levels in past reporting periods.

13. Skilled Independent Nominated target which is based on the mid-range quota set by the Commonwealth Government (Department of Immigration and Border Protection). The 2016-17 estimated outcome Is higher than the Target as a surge in overseas applicants applying for ACT nomination was experienced when the ACT Occupation List was updated in September 2016. This led to the program closing to overseas applicants on 13 September 2016. The program remains open to Canberra temporary residents/students wanting to stay permanently in Canberra. In 2017-18 this accountability indicator will be reported in Output 3.6 Higher Education, Training and Research. The 2017-18 target is based on an estimated outcome for this activity based on achievement levels in past reporting periods.

14. Percentage of ACT nominated skilled migrants that participate in settlement support program. In 2017-18 this accountability indicator will be reported in Output 3.6 Higher Education, Training and Research.

15. Average number of monthly visits to Canberra. Create Your Future website (www.canberrayourfuture.com.au), promoting the competitive advantages of Canberra to skilled workers. The greater number of monthly visits than anticipated shows a higher than expected number of users of the Canberra. Create Your Future website, indicating the resource is valuable and well used. The release of an updated ACT Occupation List in September 2016 may have contributed in part to increased visitation to the website, as well as the Federal Government’s announcement in April 2017 of changes to the Skilled Occupation List (SOL) being replaced by the Medium and Long term Strategic Skills List (MLTSSL). This is an ongoing program and the indicator is considered complete at the end of the reporting period. In 2017-18 this accountability indicator will be reported in Output 3.6 Higher Education, Training and Research.

16. Discontinued accountability indicator. This indicator measured the percentage of key published dates regarding administration of funded training initiatives. The lower than Target 2016-17 estimated outcome was due to one published date not being met (Australian Apprenticeships (User Choice) Qualification Subsidy Amounts List). The finalisation of this List was impacted by the extended public consultation period for the ACT Skills Needs List, which informs the Australian Apprenticeships (User Choice) qualification subsidy amounts. Stakeholders were advised of the revised publication date.

17. Discontinued accountability indicator. This indicator measured the percentage of registered training organisation (RTO) audit reports provided within 30 days of the completion of an on-site audit.

18. This accountability indicator measures the number of students (all; Aboriginal and Torres Strait Islander; students with a disability) undertaking government funded Vocational Education and Training in the ACT. The result relates to the 2015 calendar year and the result reported at 31 December 2016 completes this measure. In 2017-18 this accountability indicator will be reported in Output 3.6 Higher Education, Training and Research.

19. This accountability indicator measures the participation rate for students (all; Aboriginal and Torres Strait Islander) undertaking government funded Vocational Education and Training in the ACT. The result relates to the 2015 calendar year and the result reported at 31 December 2016 completes this measure. The data used to calculate the population for the Aboriginal and Torres Strait Islander target changed for this reporting period which impacted on the participation rate. In 201718 this accountability indicator will be reported in Output 3.6 Higher Education, Training and Research.


Output 3.2: VisitCanberra1


201617Targets


201718Targets

a. ACT Accommodation – Room Occupancy Rate (%)2

>national average

>63.9% >national average

b. Canberra and Region Visitors Centre (CRVC)-Overall visitor satisfaction with customer service levels at the CRVC3

>85% >85% >85%

c. Number of visits to the ‘visitcanberra’ website4

1,300,000 1,300,000 1,300,000

Note(s):1. This Output was previously Output 9.3 VisitCanberra.2. This accountability indicator provides a comparison of the ACT’s average accommodation room occupancy rate to the

national average. The ABS estimated national average for room occupancy is 63.9%.3. Satisfaction with overall customer service levels at the CRVC is captured as part of a broader Satisfaction Survey open

to visitors throughout the year. Survey data is recorded using the Survey Monkey online program.4. This accountability indicator is used to record the performance of the website www.visitcanberra.com.au as a key

driver for tourism activities such as travel, research, planning and online bookings in Canberra.

Output 3.3: Sport and Recreation1


201617Targets


201718Targets

a. Number of nationally identified priority athletes supported by the ACT Academy of Sport2

100 116 100

b. Percentage of customers satisfied with the management of sportsgrounds3

93% 93% n/a

c. Percentage of customers satisfied with management of aquatic centres4

93% 93% n/a

d. Number of organisations funded to support participation opportunities in sport and recreation5

79 81 80

Note(s):1. This Output was previously Output 9.4 Sport and Recreation.2. This accountability indicator measures the number of ACT Academy of Sport (ACTAS) supported athletes identified

and prioritised by their respective national body as an athlete with emerging international level potential through to the world class medal potential. 100 athletes represent the targeted number of scholarships able to be serviced within annual budget appropriation. The 2016-17 result is higher than anticipated due to the transition of men’s football off ACTAS scholarships over a 6 month period. Men’s football is no longer be an ACTAS program from 2017.

3. Discontinued accountability indicator. In 2017-18 this accountability indicator will be reported in the Transport Canberra and City Services Directorate. A quarterly survey of visitors to district sportsgrounds, enclosed sportsgrounds and neighbourhood ovals that measures visitors’ satisfaction with how well the sportsground is managed and standard of the facilities provided by the sportsgrounds.

4. Discontinued accountability indicator. In 2017-18 this accountability indicator will be reported in Output 8.7 Property Services. A quarterly survey of visitors to public swimming pools seeking visitors’ satisfaction with the management of public swimming pools - overall experience provided by the public swimming pools and maintenance and cleanliness of public swimming pools.


http://www.visitcanberra.com.au/

5. This accountability indicator reports the number of organisations funded through the Sport and Recreation Grant Program to deliver participation opportunities. This funding support is coupled with access to Directorate delivered education and training liaison officer assistance to improve the quality of these opportunities. The 2016-17 target (79) was based on previous years’ averages; the estimated outcome reflects two additional organisations that are not anticipated to apply in the current year.

Output 3.4: Events1


2016-17Targets

2016-17EstimatedOutcome

2017-18Targets

a. Deliver key community eventsNew Year’s Eve2 1 1 1Australia Day2 1 1 1Canberra Nara Candle Festival2 1 1 1Canberra Day Activities3 1 1 1

b. Economic activity generated as a result of staging Floriade4

$40 million $35 million $40 million

c. Economic activity generated as a result of staging the Enlighten Festival5

$2 million $2 million $3 million

d. Satisfaction with the management of Events grants in the ACT6

80% 80% 80%

Note(s):1. This Output was previously Output 9.6 Events.2. These accountability indicators cover planning, marketing and delivery of key community events: New Year’s Eve,

Australia Day and the Canberra Nara Candle Festival.3. This accountability indicator covers planning, marketing and delivery of the Canberra Festival. These activities

encompass Enlighten, the Balloon Spectacular, Lights Canberra Action, Symphony in the Park and the Canberra Day event.

4. This accountability indicator covers the economic activity generated for the Territory by staging Floriade. Visitor expenditure data is derived from face-to-face interviews conducted on site with a random sample of event attendees. The event’s direct expenditure impact aims to capture the spending of all visitors that come to the ACT (or extend their stay) specifically for Floriade. The variance between the 2016-17 Target and the Estimated Outcome is a result of prolonged adverse weather that affected the event in 2016.

5. This accountability indicator covers the economic activity generated for the Territory by staging the Enlighten Festival. Visitor expenditure data is derived from face-to-face interviews conducted on site with a random sample of attendees. The direct expenditure impact aims to capture the spending of all visitors that come to the ACT (or extend their stay) specifically for the Enlighten Festival.

6. This accountability indicator measures the standard of service and assistance the event organisers receive through delivery of the grants management process of the ACT Events Fund. A satisfaction survey is conducted on an annual basis to measure this indicator.


Output 3.5: Arts Engagement1


201617Targets


201718Targets

a. Number of art organisations supporting community participation2

25 25 25

b. Tenants satisfaction with management of Community Arts Facilities3

85% 85% 80%

c. Satisfaction with the management of grants administered by artsACT4

80% 80% 80%

d. Number of attendees at programs delivered by artsACT funded organisations5

350,000 350,000 350,000

e. Number of engagement activities with the community on arts and cultural matters6

4 4 4

Note(s):1. This Output was previously Output 9.8 Arts Engagement.2. This accountability indicator identifies the number of arts organisations supported by ACT arts funding to implement

the objectives of the ACT Arts Policy. The result is measured through the grant acquittal process.3. This accountability indicator measures the standard of service and assistance the community arts facility managers

receive from artsACT in relation to the management of ACT Government-owned arts facilities. This is indicator is measured through an annual satisfaction survey. The 2017-18 Target has been revised to be more proportionate to the small sample size.

4. This accountability indicator measures the standard of service and assistance that arts organisations and artists receive through delivery of the grants management process of the ACT Arts Fund. A satisfaction survey is conducted on an annual basis to measure this indicator.

5. This accountability indicator measures the annual attendance numbers at programs delivered by artsACT funded organisations. Attendance numbers are collected as part of the grants acquittal process.

6. This accountability indicator measures the number of times artsACT has engaged with the community on arts matters. This measure is consistent with the implementation of the 2015 ACT Arts Policy. This is measured by the number of engagement activities held each year by artsACT.


Output 3.6: Higher Education, Training and Research1


201617Targets


201718Targets

a. Deliver the ACT International Education Strategy2

- Canberra: Australia’s Education Capital Destination Marketing and Engagement (Study Canberra Program)3

n/a n/a 1

- Student Experience (Student Ambassadors Program)4

n/a n/a 1

- Collaboration (ACT Vice Chancellors’ Forum Meetings)5

n/a n/a 2

b. Higher Education, Training and Research sector capability building in key (identified) sectors2

- Precinct development projects and initiatives developed in collaboration with institutions (Key Capability Area Fund)6

n/a n/a 2

c. Participation in vocational education and training (VET) 7

- All students (percentage) n/a n/a 4.5%- Aboriginal and Torres Strait Islander

students (percentage)n/a n/a 9.0%

d. VET graduate outcomes after training2

- Improved employment circumstances8 n/a n/a 65%- Employed after training or in further

study9n/a n/a 92%

e. Total number of students undertaking vocational education and training (VET) qualifications10

- All students n/a n/a 16,500- Aboriginal and Torres Strait Islander

studentsn/a n/a 650

- Students with a disability n/a n/a 1,850f. Skilled Migration Attraction and Facilitation

- Employer Sponsored Nominated11 n/a n/a 350- Skilled Independent Nominated12 n/a n/a 350- Participation in the settlement support

program for ACT nominated migrants13n/a n/a >70%

- Average number of monthly visits to Canberra. Create Your Future website14

n/a n/a 15,000

Note(s):1. New Output.2. New accountability indicator.3. This accountability indicator relates to the delivery of the Study Canberra program as articulated in the

ACT International Education Strategy.4. This accountability indicator relates to the delivery of the Student Ambassadors program as articulated in the

ACT International Education Strategy.5. This accountability indicator relates to the number of Vice Chancellors’ Forum meetings convened.6. This accountability indicator relates to the number of successful applications to the Key Capability Area Fund.


7. This accountability indicator was previously reported in Output 9.2 Innovation, Trade and Investment. This accountability indicator measures the participation rate for students (all; Aboriginal and Torres Strait Islander) undertaking government funded Vocational Education and Training in the ACT. This target is based on data in a national publication. From 2016 the definition of the data was changed and some activity was excluded, which necessitated a reduced target.

8. This accountability indicator measures the percentage of graduates with improved employment circumstances, in the ACT, as defined by the state/territory of funding by year, in the National Centre for Vocational Education Research (NCVER) Student Outcomes Survey.

9. This accountability indicator measures the percentage of graduates employed after training or in further study, in the ACT, as defined by the state/territory of funding by year, in the NCVER Student Outcomes Survey.

10. This accountability indicator was previously reported in Output 9.2 Innovation, Trade and Investment. This accountability indicator measures the number of students (all; Aboriginal and Torres Strait Islander; students with a disability) undertaking government funded Vocational Education and Training in the ACT. These targets are based on data in a national publication. From 2016 the definition of the data was changed and some activity was excluded. In addition, the data used to calculate the population for the Aboriginal and Torres Strait Islander target has also changed. These factors necessitate a reduced target.

11. This accountability indicator was previously reported in Output 9.2 Innovation, Trade and Investment. Tracks ongoing program delivery within Commonwealth Government (Department of Immigration and Border Protection) policy parameters based on a three-year average. The 2017-18 target is based on an estimated outcome for this activity based on achievement levels in past reporting periods. This is an ongoing program and the indicator is considered complete at the end of the reporting period.

12. This accountability indicator was previously reported in Output 9.2 Innovation, Trade and Investment. The 2017-18 target is based on the low-range quota set by the Commonwealth Government (Department of Immigration and Border Protection). The reduced 2017-18 target is based on a change to the scope of visas captured. International students and temporary visa holders are no longer captured by this indicator as they are already living and working in the ACT. The program remains open to Canberra temporary residents/students wanting to stay permanently in Canberra. This is an ongoing program and the indicator is considered complete at the end of the reporting period.

13. This accountability indicator was previously reported in Output 9.2 Innovation, Trade and Investment. Percentage of ACT nominated skilled migrants that participate in settlement support program. This is an ongoing program and the indicator is considered complete at the end of the reporting period.

14. This accountability indicator was previously reported in Output 9.2 Innovation, Trade and Investment. Average number of monthly visits to Canberra. Create Your Future website (www.canberrayourfuture.com.au), promoting the competitive advantages of Canberra to skilled workers. This is an ongoing program and the indicator is considered complete at the end of the reporting period.

Output 3.7: Economic Development Strategy and Program Design (Discontinued)1, 2


201617Targets


201718Targets

a. Economic development strategy and program initiatives3

6 6 n/a

b. Regulatory and process reform initiatives3 2 2 n/ac. 4-year Indicative Land Release Program

published4

1 1 n/a

Note(s):1. This Output was previously Output 9.1 Economic Development Strategy and Program Design.2. In 2017-18 this Output will be reported in the Environment, Planning and Sustainable Development Directorate.3. These accountability indicators incorporate key government initiatives to be delivered by the Economic Development

Strategy and Program Design Branch during the year. Scope, delivery and timing of initiatives may vary depending on emerging priorities that impact on resource availability.

4. This accountability indicator covers publication of the 2017-18 to 2020-21 Indicative Land Release Program.


Output 3.8: Urban Renewal (Discontinued)1, 2


2016-17Targets


2017-18Targets

a. Asset Recycling Initiative3 100% 100% n/ab. Public Housing Renewal Program Contracts4 362 378 n/ac. Public Housing Renewal Program Delivery5 424 391 n/a

Note(s):1. This Output was previously Output 9.9 Urban Renewal.2. In 2017-18 this Output will be reported in the Environment, Planning and Sustainable Development Directorate.3. This accountability indicator covers the 19 sites included as part of the Commonwealth Government’s Asset Recycling

Initiative (ARI). The target measures the percentage of ARI sites for which sales strategies have been established and endorsed.

4. This accountability indicator covers the delivery of the ACT Government’s Public Housing Renewal Program and measures the number of replacement dwellings covered by new contracts in the target year. This includes dwellings covered by purchasing contracts and dwellings covered by construction contracts. The variance against the 2016-17 target is related to an increased number of properties which entered into contract as purchases from the Public Housing Renewal Taskforce’s Expression of Interest process.

5. This accountability indicator covers the delivery of the ACT Government’s Public Housing Renewal Program and measures the number of replacement dwellings completed and transferred to Housing ACT in the target year. If the dwelling is covered by a new contract and delivered in the same financial year, this will count towards the delivery of the indicator. The variance against the 2016-17 target is related to delays associated with the significant wet weather experienced during 2016 on one construction project, and one site being purchased through the Public Housing Renewal Taskforce’s Expression of Interest process. The Public Housing Renewal Taskforce is continuing to work on these sites with the aim of completion in the 2016-17 financial year.

Output 3.9: Venues (Discontinued)1, 2


2016-17Targets


2017-18Targets

a. Number of Major Events at- GIO Stadium3 23 30 n/a- Manuka Oval3 5 8 n/a- Stromlo Forest Park3 10 10 n/a- Exhibition Park in Canberra3 85 100 n/a

b. Own Source Revenue by Venue- GIO Stadium4 $3.0 million $3.0 millio

nn/a

- Manuka Oval4 $360,000 $360,000 n/a- Exhibition Park in Canberra5 $3.5 million $3.5 millio

nn/a

c. The level of customer satisfaction at the National Arboretum Canberra6

85% 85% n/a

Note(s):1. This Output was previously Output 9.5 Venues (the 2016-17 Budget Statement).2. This Output will be transferred to Output 9.2 Venues in 2017-18 (this Budget Statement).


3. These accountability indicators reflect the number of planned major events to be held at each venue in 2016-17.4. These accountability indicators cover own source revenue (measured as gross profit) generated by GIO Stadium and

Manuka Oval and are based on pre-existing hire agreements.5. This accountability indicator covers own source revenue (measured as gross revenue) generated by Exhibition Park in

Canberra.6. This accountability indicator was previously reported in Output 9.6 Events. Customer satisfaction is based on an

annual survey undertaken towards the end of the financial year.

Output 3.10: Property Services (Discontinued)1, 2


2016-17Targets


2017-18Targets

a. Use of Renewable Energy3 5% 5% n/ab. Occupancy rate for properties designated for use by

non-government tenants4

96% 94% n/a

c. Average square metres of office accommodation per employee5

14.5 14.5 n/a

Note(s):1. This Output was previously reported in Output 9.7 Property Services (the 2016-17 Budget Statement).2. This Output will be transferred to Output 9.1 Property Services in 2017-18 (this Budget Statement).3. This accountability indicator covers the 19 sites included as part of the Commonwealth Government’s Asset Recycling

Initiative (ARI). The target measures the percentage of ARI sites for which sales strategies have been established and endorsed.

4. This accountability indicator covers the delivery of the ACT Government’s Public Housing Renewal Program and measures the number of replacement dwellings covered by new contracts in the target year. This includes dwellings covered by purchasing contracts and dwellings covered by construction contracts. The variance against the 2016-17 target is related to an increased number of properties which entered into contract as purchases from the Public Housing Renewal Taskforce’s Expression of Interest process.

5. This accountability indicator covers the delivery of the ACT Government’s Public Housing Renewal Program and measures the number of replacement dwellings completed and transferred to Housing ACT in the target year. If the dwelling is covered by a new contract and delivered in the same financial year, this will count towards the delivery of the indicator. The variance against the 2016-17 target is related to delays associated with the significant wet weather experienced during 2016 on one construction project, and one site being purchased through the Public Housing Renewal Taskforce’s Expression of Interest process. The Public Housing Renewal Taskforce is continuing to work on these sites with the aim of completion in the 2016-17 financial year.

Output Class 4: Financial and Economic Management

Output 4.1: Economic Management


201617Targets


201718Targets

a. Briefings on the ACT economy1 115 115 115b. Submission to CGC Annual Update2 1 1 1c. Submission to credit rating agency3 1 1 1


Note(s):1. This accountability indicator covers briefings on the most recent key economic indicators for Canberra and the

Australian Capital Territory, including those based on ABS or other data sources. This indicator excludes other general briefings on the economy.

2. This accountability indicator covers the annual submission to the Commonwealth Grant Commission (CGC), which forms part of their annual data update which will determine the ACT’s share of the national GST pool.

3. This accountability indicator covers the annual submission to the credit rating agency Standard & Poor’s (S&P). This enables S&P to make an assessment of the credit rating of the ACT Government. The submission is a daylong meeting with the agency.

Output 4.2: Financial Management


201617Targets


201718Targets

a. Budget presented in accordance with legislative timeframes1

1 1 1

a. Budget Review presented in accordance with legislative timeframes2

1 1 1

b. Annual Financial Statements for the Territory in accordance with legislative timeframes3

1 1 1

c. Quarterly Consolidated Financial Statements presented in accordance with legislative timeframes4

4 4 4

d. Policy/service reviews commenced5 2 2 2e. Policy/service reviews completed6 3 3 2f. Regulatory reform in relation to financial

processes71 1 1

Note(s):1. The Territory Budget is presented to the Legislative Assembly in accordance with the timing prescribed in section 5 of

the Financial Management Act 1996 (FMA).2. The Budget Review for the Territory is presented to the Legislative Assembly in accordance with the timing prescribed

in section 20A of the FMA.3. The Annual Financial Statements for the Territory are provided to the Auditor-General in accordance with the timing

prescribed in section 24 of the FMA.4. The Quarterly Consolidated Financial Statements are presented to the Legislative Assembly in accordance with the

timing prescribed in section 26 of the FMA.5. In 2016-17, the Human Resources and Financial Services Update and progressing work flowing from the review of

select budget programs commenced.6. In 2016-17 the Human Resources and Financial Services Update and work flowing from the review of select budget

programs commenced. Expenditure reviews of child protection and out of home care, and libraries will be undertaken in 2017-18.

7. The 2016-17 estimated outcome includes the completion of the Human Services Cluster Review, the Human Resources and Financial Services Update and work flowing from the review of select budget programs. In 2017-18 expenditure reviews of child protection and out of home care, and libraries will be completed.


Output Class 5: Workforce Injury Management and Industrial Relations Policy

Output 5.1: Workforce Injury Management and Industrial Relations Policy


201617Targets


201718Targets

a. Provide advice to government on developments in the work health and safety policy agenda1

6 6 n/a

b. Represent the ACT at Safe Work Australia, and coordinate input to, and activities arising from, national initiatives to harmonise work health and safety laws and workers’ compensation arrangements2

10 12 n/a

c. Conduct an actuarial review of the ACT private sector Worker’s Compensation Scheme3

Apr 2017 Apr 2017 Apr 2018

d. In accordance with government directions, make changes to the Workers Compensation Act 19514

Jun 2017 Jun 2017 n/a

e. Provide advice to the government regarding workplace relations issues5

7 8 n/a

f. Represent the ACT on national industrial relations fora and coordinate input to, and activities arising from the National Workplace Relations System6

4 4 n/a

g. Maintain consultative work injury management fora within the ACT7

4 4 4

h. Provide policy and legislative advice to the government on issues relating to dangerous substances, including chemical, explosive and asbestos regulation8

6 6 n/a

i. Review implementation of the Getting Home Safely construction industry safety inquiry recommendations9

Apr 2017 Apr 2017 n/a

j. Achieve a conformance rating of 85% or higher in the annual audit of the ACT Government Rehabilitation Management System10

85% 85% 85%

k. Reduce the incidence of ACT public sector lost time work injuries11

-5% -2.5% n/a

l. Provide policy advice on issues relating to industrial relations, injury management, work safety, and dangerous substances regulation12

n/a n/a 20

m. Represent the ACT and coordinate activities arising from, national industrial relations, work safety and injury management forums13

n/a n/a 14

n. Reduce the ACT public sector incidence of serious workplace injury14

n/a n/a 11.39


Note(s):1. Discontinued accountability indicator. In 2017-18 this indicator has been consolidated into the new streamlined

indicator l. This accountability indicator covered the preparation of briefing papers to the ACT Government on significant national work health and safety developments. This indicator was counted as complete when submissions are lodged with the ACT Government.

2. Discontinued accountability indicator. In 2017-18 this indicator has been consolidated into the new streamlined indicator m. This accountability indicator covered preparation for, and attendance at, meetings of Safe Work Australia, meetings of the Strategic Issues Group, and meetings of various technical advisory groups established to harmonise work safety legislation and improve workers’ compensation arrangements. This indicator was considered complete with attendance at meetings.

3. This accountability indicator covers review of the performance of the ACT Workers’ Compensation Scheme and consideration of the broader implications of these findings. This indicator is considered complete on receipt of the actuarial analysis and reporting to the Minister for Workplace Safety and Industrial Relations.

4. Discontinued accountability indicator. The activity covered by this indicator has been determined to be more appropriately described in the Output Class overview. This accountability indicator covered the development of amendments to the Workers Compensation Act 1951, which are intended to improve the overall efficiency and effectiveness of the Workers’ Compensation Scheme. The indicator was considered complete when the submissions to the ACT Government proposing amendments were finalised following external consultation.

5. Discontinued accountability indicator. In 2017-18 this indicator has been consolidated into the new streamlined indicator l. This accountability indicator covered the provision of advice to the ACT Government on the progress of any amendments to the Fair Work Act 2009, and other issues arising in relation to the national workplace relation laws. The indicator was considered complete on provision of briefs and other advice to the ACT Government.

6. Discontinued accountability indicator. In 2017-18 this indicator has been consolidated into the new streamlined indicator m. This accountability indicator covered the ACT’s participation and involvement in the various federally sponsored fora on the administration of the Fair Work Act 2009.

7. This accountability indicator covers the secretariat role to the ACT Work Safety Council, supporting four meetings of the Council. The indicator is considered complete when Council meetings are held and minutes agreed.

8. Discontinued accountability indicator. In 2017-18 this indicator has been consolidated into the new streamlined indicator l. This accountability indicator covered advice on the Dangerous Substances Act 2004, including chemical, explosives and asbestos regulation.

9. Discontinued accountability indicator. The activity covered by this indicator does not continue beyond 2016-17. The accountability indicator was considered complete on provision of a final report to the Minister for Workplace Safety and Industrial Relations setting out the findings of the review.

10. It is a condition of the ACT Government’s delegations under the Safety Rehabilitation and Compensation Act 1988 that the Territory maintains a rehabilitation management system that complies with the Commonwealth guidelines and that conformance be audited annually.

11. Discontinued accountability indicator. This indicator has been replaced with new indicator n, which covers the same activities, but aligns the indicator with the Safe Work Australia National WHS Strategy 2012-22. The accountability indicator measured the number of workers’ compensation claims resulting in absence from the workplace of one day or more. The baseline number was the annual average number of lost time claims for the three years to 31 December 2015, at 12 months of claim development. The Australian Work Health and Safety Strategy 2012-2022 published by SafeWork Australia includes a target for reducing injuries that result in one week or more of absence from the workplace. The ACTPS remains committed to decreasing the incidence of injuries that result in any work absence, not only those that result in one week or more of absence. As such, the ACTPS has set a target of reducing the incidence of lost time injuries by 5%. At the time of review the ACTPS was achieving a 2.5% reduction and strategies were being implemented to reach the 5% reduction by the end of the financial year.

12. New accountability indicator. This indicator consolidates the activities previously described in discontinued indicators a, e and h. This accountability indicator covers the preparation of briefing papers to the ACT Government on workers’ compensation, industrial relations and work safety matters. This indicator is counted as complete when submissions are lodged with the ACT Government.

13. New accountability indicator. This indicator consolidates the activities previously described in discontinued indicators a, e and h. This accountability indicator covers representing the Territory at, and managing policy initiatives arising out of, national industrial relations and injury management forums, including SafeWork Australia and its policy sub-committees and the national industrial relations senior officials group. This indicator is considered complete with attendance at meetings.

14. New accountability indicator. This accountability indicator covers injury prevention activities previously described in discontinued indicator k, and aligns the indicator with the measure, target and baseline calculation used in the Safe Work Australia National WHS Strategy 2012-22. This accountability indicator measures the number of ACT public servant workers’ compensation claims resulting in absence from the workplace of one week or more, per 1,000 employees.


Output Class 6: Revenue Management

Output 6.1: Revenue Management


201617Targets


201718Targets

a. Debt Management – level of overdue debt as a percentage of tax revenue1

2.5% 3.4% 2.5%

b. Internal reviews of Objections completed within 6 months2

85% 85% 85%

c. Internal reviews of Objections completed within 12 months3

100% 100% 100%

d. Compliance revenue per inspector4 $500,000 $800,000 $650,000Note(s):1. ‘Level of overdue debt’ measures the level of overdue collectable debt as a percentage of forecast tax revenue. It

excludes matters subject to objection and appeals, under liquidation and agreements made by the ACT Government in respect of pending waivers.

2. Accountability indicator on the completion within timeframes of internal reviews of objections lodged against revenue assessments and decisions.

3. Accountability indicator on the completion within timeframes of internal reviews of objections lodged against revenue assessments and decisions.

4. ‘Compliance revenue per inspector’ measures all revenue assessed from compliance activities divided by the number of full-time-equivalent Inspectors. It includes revenue from assessments, reassessments (being that portion not already assessed), compromise assessments issued by the Compliance Section, outstanding returns, savings resulting from reductions in refund claims and other compliance activity.

Output Class 7: Shared Services

Output 7.1: Shared Services


201617Targets


201718Targets

a. ICT costs compared to peer organisations’ costs, as benchmarked by an independent organisation1

n/a n/a within 5%

b. Email availability across government during core business hours2

100% 100% 100%

c. ICT service requests made via the Service Desk are resolved within Service Level Agreements’ timeframes3

90% 90% 90%

d. Average time taken for telephone ICT service requests to be answered by a Service Desk Officer4

20 seconds 30 seconds 30 seconds

e. Number of successful attacks on internally hosted ACT Government websites5

0 0 0

f. Human resources service requests made via the Service Desk are resolved within Service Standard timeframes6

90% 90% 90%


201617Targets


201718Targets

g. Data for Annual Reports and the Workforce Profile are provided within the agreed timeframe7

100% 100% n/a

h. Performance standards in Recruitment Services for permanent and temporary vacancies services specifications acheived8

95% 95% n/a

i. Business Activity Statements completed in accordance with the ATO deadline9

100% 100% 100%

j. Fringe Benefits Tax Return submitted to the ATO in accordance with the ATO deadline10

100% 100% 100%

k. Monthly financial information available for use by agencies by 6th working day of the month11

100% 100% 100%

l. Annual financial statements completed and provided to agencies by 10th working day of July12

100% 100% 100%

m. Average time (working days) taken to enter accounts payable invoices into Oracle following receipt at Shared Services Finance from directorates13

2 2 n/a

n. Finance service requests made via the Service Desk are resolved within Service Standards timeframes14

90% 90% 90%

Note(s):1. New accountability indicator. The independent benchmarking is undertaken every two years.2. Established by determining up-time of each core component of the network across core business hours (Monday to

Friday 8am to 6pm).3. Service Standards timeframes are published standards for service delivery by Shared Services.4. This measure covers the average time (in seconds) taken for a call to be answered by the Service Desk. The increase in

2017-18 reflects industry standards and will increase the ability to resolve queries at first point of contact.5. This measure covers security breaches of internally hosted ACT Government web sites and web applications.6. Service Standards timeframes are published standards for service delivery by Shared Services.7. Discontinued accountability indicator. This accountability indicator covered provision of HR statistical data to

Directorates to enable Directorates to prepare their annual report consistent with the annual report guidelines developed by the Chief Minister, Treasury and Economic Development Directorate. This accountability indicator forms part of normal business processes and no longer warrants being measured.

8. Discontinued accountability indicator. Represented the overall average of performance standards in recruitment service specifications being achieved. This accountability indicator forms part of normal business processes and no longer warrants being measured.

9. This accountability indicator covers the submission of Business Activity Statements (BAS) to the Australian Taxation Office (ATO).

10. This accountability indicator covers the lodgement of annual Fringe Benefits Tax (FBT) returns to the ATO.11. This accountability indicator refers to the completion of processing of monthly financial information using Oracle.12. This accountability indicator covers the submission of draft annual financial reports to the directorates/agencies.13. Discontinued accountability indicator. This accountability indicator referred to the average number of working days it

takes for Shared Services to manually enter accounts payable invoices into Oracle. In 2017-18 an accounts payable invoice automation solution will be implemented and the accountability indicator will no longer be valid.

14. Service Standards timeframes are published standards for service delivery by Shared Services.


Output Class 8: Infrastructure Finance and Capital Works

Output 8.1: Infrastructure Finance and Capital Works1


201617Targets


201718Targets

a. Life of Project PPP transactions successfully executed2

n/a n/a 100%

b. Proportion of Government funded annual Capital Works program supported by Infrastructure Finance and Capital Works3

90% 90% 90%

c. Proportion of relevant projects supported by Infrastructure Finance and Capital Works that have had WHS audits performed in accordance with the Active Certification Audit Program4

>90% 100% >90%

d. Capital Works Projects5

- Percentage of Construction Projects Completed on Budget6

85% 95% >85%

- Percentage of Construction Projects Completed on Time7

85% 95% >85%

- Percentage of contracts awarded to prequalified contractors/consultants8

n/a n/a >95%

e. Proportion of relevant contracts managed by Procurement that include the requirement for the contractor to hold IRE Certification9

n/a n/a >90%

Note(s):1. This Output has been renamed and was previously Output 8.1 Procurement and Capital Works (PCW). This Output

includes the Infrastructure Finance and Advisory function previously reported in Output 4.2 Financial Management, Capital Works Procurement previously reported in Output 8.1 PCW and part of Civil Infrastructure previously reported in Output 9.1 Economic Development Strategy and Program Design.

2. New accountability indicator.3. This excludes capital works undertaken by the Land Development Agency and the Commissioner for Housing. It

excludes works under Directorates’ Better Infrastructure Fund and capital ICT works, due to the nature of these specific capital works and activities. Some Directorates maintain their own works delivery capacity, and so the target is designed to reflect that Infrastructure Finance and Capital Works is the provider of choice for all other capital procurement and project management services. While individual projects may be completed during the year, the total proportion is measured annually.

4. The Active Certification Audit Program applies to construction work for Government capital works projects valued at $250,000 or more.

5. This accountability indicator applies to all construction projects managed by Infrastructure Finance and Capital Works.6. This accountability indicator measures the percentage of New Construction Capital Works projects developed by

Infrastructure Finance and Capital Works that are delivered within the approved budget.7. This accountability indicator measures the percentage of New Construction Capital Works projects developed by

Infrastructure Finance and Capital Works that are delivered within the approved timeframe.8. New accountability indicator. This accountability indicator applies only to contracts for works and services that have a

prequalification category under the ACT Government Prequalification Schemes.9. New accountability indicator. This accountability indicator applies to contracts for works and services executed in the

reporting year that are covered by the Compliance with Industrial Relations and Employment Obligations Strategy (IRE Strategy). Contractors receive IRE Certification following an audit, conducted by an approved auditor, in accordance with the IRE Strategy.


Output Class 9: Property Services, Venues and Procurement

Output 9.1: Property Services1


201617Targets


201718Targets

a. Use of Renewable Energy2 n/a n/a 5%b. Occupancy rate for properties designated for

use by non-government tenants3n/a n/a 96%

c. Average square metres of office accommodation per employee4

n/a n/a 14.5

d. Percentage of customers satisfied with management of aquatic centres5

n/a n/a 93%

Note(s):1. This Output was previously Output 9.7 Property Services. The 2016-17 estimated outcomes for this Output are

reported in this Budget Statement in Output 3.10 Property Services (Discontinued).2. This accountability indicator measures the proportion of the ACT Government’s electricity supply sourced from

GreenPower© accredited renewable sources represented by Renewable Energy Certificates, as outlined in the Carbon Neutral ACT Government Framework.

3. This accountability indicator measures the occupancy rate for properties designated for use by non-government tenants (community groups and commercial organisations) by calculating the percentage of occupied space against the total of available non-government space.

4. This accountability indicator covers the quantum of office space utilised per employee. The utilisation rate is the average net lettable area of office space measured on a square meter basis per employee in ACT Government owned and leased office accommodation that is being occupied by ACT Government agencies. The target reflects progress in implementing the Whole of government Office Accommodation Strategy as announced on 25 January 2016.

5. This accountability indicator was previously reported in Output 8.4 Sport and Recreation. A quarterly survey of visitors to public swimming pools seeking visitors’ satisfaction with the management of public swimming pools - overall experience provided by the public swimming pools and maintenance and cleanliness of public swimming pools.

Output 9.2: Venues1


201617Targets


201718Targets

a. Number of Major Events at- GIO Stadium2 n/a n/a 24- Manuka Oval2 n/a n/a 5- Stromlo Forest Park2 n/a n/a 10- Exhibition Park in Canberra2 n/a n/a 85

b. Own Source Revenue by Venue at:- GIO Stadium3 n/a n/a $3.0 million- Manuka Oval3 n/a n/a $360,000- Exhibition Park in Canberra4 n/a n/a $3.5 million

c. The level of customer satisfaction at the National Arboretum Canberra5

n/a n/a 85%

Note(s):1. New Output. This Output was previously Output 9.5 Venues. The 2016-17 estimated outcomes for this Output are

reported in this Budget Statement in Output 3.9 Venues (Discontinued).


2. These accountability indicators reflect the number of planned major events to be held at each venue in 2017-18.3. These accountability indicators cover own source revenue (measured as gross profit) generated by GIO Stadium and

Manuka Oval and are based on pre-existing hire agreements.4. This accountability indicator covers own source revenue (measured as gross revenue) generated by Exhibition Park in

Canberra.5. Customer satisfaction is based on an annual survey undertaken towards the end of the financial year.

Output 9.3: Goods and Services Procurement1


201617Targets


201718Targets

a. Proportion of tenders available to potential tenderers in electronic format2

>95% 100% n/a

b. Proportion of Goods and Services contracts awarded to Indigenous suppliers or Social suppliers3

n/a n/a 1%

Note(s):1. New Output. Goods and Services Procurement was previously part of Output 8.1 Procurement and Capital Works.2. Discontinued accountability indicator. This accountability indicator was previously reported in Output 8.1

Procurement and Capital Works. This accountability indicator measured the proportion of tenders published on the Procurement website that are available to the public to download in electronic format. All approaches to market managed by Procurement are now published on Tenders ACT, with the documents available to be downloaded in electronic format.

3. New accountability indicator. ACT Government agencies are encouraged to include Indigenous business and social enterprises in their procurement opportunities. Indigenous suppliers must be registered or certified by Supply Nation, a supplier development council that manages a national directory of registered/certified indigenous businesses. Social enterprises deliver targeted social or community benefits using traditional business principles. They may be for-profit or not-for-profit organisations, but they seek both a financial and a social return on investment. The ACT Government has established a social enterprise panel to supply a range of services to government.


Output Class 10: Loose Fill Asbestos Insulation Eradication (Discontinued)

Output 10.1: Loose-Fill Asbestos Insulation Eradication Scheme (Discontinued)1


2016-17Targets

2016-17Amended

Target2

2016-17EstimatedOutcome3

2017-18Targets

Community Engagement and Advice:a. Undertake a program to provide advice and

support to residents of properties affected by loose-fill asbestos insulation4

1 1 1 n/a

b. Conduct and/or attend Community Forums/Meetings on Loose-fill Asbestos Insulation (health, management, demolition)5

4 1 2 n/a

c. Undertake an education program to inform the broader community about the demolition and sales activities of the Scheme6

1 1 1 n/a

Buy-Back and Demolition Program: d. Continue to facilitate settlement of the

surrender of properties under the Buyback program7

1 1 1 n/a

e. Demolish affected dwellings8 310 103 187 n/af. Deregister affected properties post

demolition and soil validation9300 100 138 n/a

Sales Program: g. Sale of remediated and deregistered blocks10 380 126 45 n/a

Policy, Technical and Regulation: h. Support the conduct of a health study of

asbestos exposure in affected homes111 1 1 n/a

Note(s):1. This Output was previously Output 2.1, and transferred to the Environment, Planning and Sustainable Development

Directorate (EPSDD) from 1 November 2016 under the Administrative Arrangements 2016 (No 4).2. The 2016-17 Targets were amended by Notifiable Instrument NI2017-192 to reflect the Administrative Arrangements

2016 (No 4), which transferred the Asbestos Response Taskforce from CMTEDD to EPSDD, effective from 1 November 2016.

3. The 2016-17 estimated outcome relates to the period 1 July 2016 to 31 October 2016. EPSDD will report on the period 1 November 2016 to 30 June 2017.

4. This accountability indicator encompasses the ACT Government’s assistance program for owners/residents of properties containing loose-fill asbestos insulation, including a designated personal support team to facilitate direct client support and communication; and design and delivery of financial assistance measures. The Program will continue while there is demand in the community for this service. Current efforts are underway to establish ongoing community partnerships and procedures that will ensure an equitable support service is provided for those who have deferred settlement.


5. This accountability indicator covers the design, development and delivery of community forums to provide information and advice on a range of topics relating to loose-fill asbestos insulation and the Loose-fill Asbestos Insulation Eradication Scheme (including at the invitation of community groups). Community engagement has been modified throughout the delivery of the Scheme to best suit the Canberra community. Community forums were conducted earlier in the phase until it was determined that more enhanced community engagement (such as for suburbs with ‘clustered’ properties) was of greatest interest and benefit to the community.

6. This accountability indicator encompasses an ongoing communication and awareness campaign aimed at local neighbourhoods and the broader Canberra community. The outcome of this program is to support the community throughout the demolition and sales activities that will be occurring across numerous Canberra suburbs throughout the year.

7. This accountability indicator recognises the agreed delay between exchange on the deed of surrender for an affected property, and settlement of the surrender (at which point funds are released).

8. This accountability indicator relates to the number of affected properties that are demolished under the Scheme including ACT Government demolitions and Assisted Private Demolitions. Increased efficiency resulted in the Demolition Program surpassing the amended target.

9. This accountability indicator relates to the number of affected properties that are demolished (ACT Government, Assisted Private, and self-funded demotions) and have subsequently been removed from the Loose Fill Asbestos Premises Register. The accelerated demolition program and established deregistration processes has resulted in increased efficiency.

10. This accountability indicator relates to the number of properties that are purchased by the Taskforce through the Buyback program, demolished, removed from the Loose Fill Asbestos Premises Register, sold and settled. The First Right of Refusal priority has resulted in prolonged sales outcomes, yet an increase in sales events will work toward achieving the annual property sales target.

11. This accountability indicator covers the provision of financial support to ACT Health to facilitate the conduct of a health study of asbestos exposure in affected homes. ACT Health is responsible for the management of the contract under which the study is being progressed.


Changes to Appropriation

Table 59: Changes to appropriation – Controlled Recurrent Payments

2016-17 Estimated Outcome

$'000

2017-18 Budget

$'000

2018-19 Estimate

$'000

2019-20 Estimate

$'000

2020-21 Estimate

$'000

2016-17 Budget 394,159 298,580 280,190 281,638 281,638

FMA Section 16B Rollovers from 2015-16Australia Forum – Investment ready 243 - - - -Better Public Housing – New public housing

properties(4,866) - - - -

Boosting Tourism – Destination marketing partnerships

62 - - - -

Commonwealth Grants – Building Australia's Future Workforce – Skills Reform NP

5,936 - - - -

Commonwealth Grants – National Skills and Workforce Development SPP

82 - - - -

Confidence and Business Ready – Business Development Strategy 2015

403 - - - -

Conservation Management Plans for Heritage Buildings (Feasibility)

4 - - - -

Coppins Crossing Road and William Hovell Drive Intersection and Road Upgrades (Feasibility)

(76) - - - -

Digital Canberra 1,114 - - - -Grant for Development of a New Basketball

Centre and Player Amenities263 - - - -

Healthy Weight Initiative 153 - - - -Human Resources Information Management

System Upgrade230 - - - -

iConnect 20 - - - -ICT Transformation – Hybrid cloud computing 250 - - - -Investment Logic Mapping 376 - - - -Isabella Weir Spillway Upgrades (Feasibility) (145) - - - -Kingston Foreshore – Structured Carpark

(Feasibility)34 - - - -

Kingston Visual Arts Hub 30 - - - -Loose-fill Asbestos Insulation Eradication Scheme 1,467 - - - -Molonglo 3 Hydraulic Services Concept

Masterplanning (Feasibility)(262) - - - -

Molonglo 3 – Major Electrical Infrastructure Relocation (Feasibility)

50 - - - -

Molonglo 3 – Preliminary Geotechnical Investigation (Feasibility)

80 - - - -

Molonglo Valley – Implementation of Commitments in the Plan for the Protection of Matters of National Environmental Significance

(120) - - - -

More Men's Sheds 87 - - - -Office Accommodation (648) - - - -Restructure Fund 5,974 - - - -Strategic Asset Management Plan 1,233 - - - -Urban Renewal Program – Better Public Housing (604) - - - -



$'000

2017-18 Budget

$'000

2018-19 Estimate

$'000

2019-20 Estimate

$'000

2020-21 Estimate

$'000

Urban Renewal Program – Better Public Housing – Allawah Court

(357) - - - -

Urban Renewal Program – Better Public Housing – Owen Flats

(92) - - - -

Urban Renewal Program – Better Public Housing – Red Hill Housing Precinct

(29) - - - -

West Belconnen – Stormwater, Hydraulic and Utility Services (Feasibility)

(100) - - - -

2017-18 Budget Policy AdjustmentsBetter care when you need it – More support for

the Active Living Program- 170 - - -

Better care when you need it – Promoting organ and tissue donation

- 145 - - -

Better Services – Ice sports facility consultation 75 - - - -Better services in your community – More

transparent government- 954 864 - -

Better services in your community – Tough on road safety

- 32 32 32 32

Better support when it matters – A Gender Agenda

- 167 167 166 -

Better Support when it matters – Caring for our children and young people

- 250 - - -

Better support when it matters – Office for LGBTIQ Affairs

- 340 345 350 354

Better support when it matters – Protecting vulnerable Canberrans

- 1,570 - - -

Bigger and Better Events for Canberra – Art, Not Apart Festival

110 - - - -

Bigger and Better Events for Canberra – Floriade Fringe

250 - - - -

Building a better city — Canberra Brickworks – Access Road and Dudley Street upgrade

- - - - 80

Building a better city – Delivering light rail safely - 353 240 122 -Building a better city – Indoor sports centres –

Early planning- 160 - - -

Building a better city — Strengthening oversight of land development

- 178 181 183 186

Digital Canberra – Removing hurdles to increased organ donation

75 - - - -

More and better jobs – Autonomous Vehicle trial - 750 600 - -More and better jobs – Canberra Theatre

Complex community consultation- 100 - - -

More and better jobs – Ensuring continuity of the Human Resources Information Management System

- - 500 1,500 2,000

More and better jobs – Ensuring your views are heard – Deliberative democracy

- 2,111 665 - -

More and better jobs – Growing our creative capital

- 1,126 1,435 1,435 1,400

More and better jobs – Growing the tourism industry

- 1,275 1,300 1,250 275

More and better jobs – Improving infrastructure planning and delivery

- 1,588 1,627 1,666 -



$'000

2017-18 Budget

$'000

2018-19 Estimate

$'000

2019-20 Estimate

$'000

2020-21 Estimate

$'000

More and better jobs – Improving Manuka Oval broadcast and media facilities

- - - 100 200

More and better jobs – Improving safety and integrity in combat sports

- 150 154 158 162

More and better jobs – Improving services through better data analytics

- 633 - - -

More and better jobs – Improving the efficiency of Government

- 350 358 366 -

More and better jobs – Making Canberra an even better place to study

- 750 750 750 750

More and better jobs – Reshaping Canberra’s events calendar

- 1,935 - - -

More and better jobs – Sporting capital - 1,850 1,710 1,610 350More and better jobs – Supporting Canberra

businesses to diversify, grow and innovate- 4,850 3,409 3,418 3,050

More and better jobs – Supporting civics education

- 31 24 17 -

More and better jobs – Supporting major venues - 1,660 350 350 350More and better jobs – Supporting more women

into trades- 250 250 250 250

Rugby League World Cup 1,000 - - - -Smarter government spending – Centralising

property custodianship- 2,633 1,499 - -

Smarter government spending – Smart Modern Strategic (SMS) Procurement Reform extension

- 1,000 1,000 - -

Supporting Arts in the ACT – Additional grant funding

230 - - - -

Workers' Compensation - 9,184 9,382 9,537 9,726

2017-18 Budget Technical AdjustmentsRevised Indexation Parameters (6) (693) (1,083) (1,125) 4,582Revised Superannuation Parameters (779) (1,468) (2,176) (2,950) (3,203)Transfer – Improving Road Safety – Traffic

Camera Adjudication System Upgrade from JACSD to CMTEDD

196 203 207 211 215

Transfer – Land Policy from CMTEDD to EPSDD - (5,282) (4,702) (6,561) (6,618)Transfer – Loose-fill Asbestos Insulation

Eradication Scheme from CMTEDD to EPSDD(25,322) (9,431) (7,966) (14,471) (14,579)

Transfer – Public Housing Renewal Taskforce from CMTEDD to EPSDD

- (38,122) (6,100) - -

Transfer – Racing and Gaming policy from CMTEDD to JACSD

(95) (147) (150) (154) (158)

Transfer – Revenue Collection Transformation from Controlled Recurrent Payments to Capital Injection

- - (500) (500) (500)

Transfer – Sportground Management from CMTEDD to TCCS

- (9,159) (9,383) (9,603) (9,820)

Transfer – Strategic Office Accomodation Project from various Directorates

- 758 769 784 1,304

Revised Funding Profile – ACT Public Service Workers' Compensation Insurance Scheme

(155) 155 - - -

Revised Funding Profile – Asset Recycling (72) - 72 - -



$'000

2017-18 Budget

$'000

2018-19 Estimate

$'000

2019-20 Estimate

$'000

2020-21 Estimate

$'000

Revised Funding Profile – ACT Vocational Education and Training Administration Records System (AVETARS)

(202) 202 - - -

Revised Funding Profile – Australian Apprenticeship Support

(470) 470 - - -

Revised Funding Profile – Better Infrastructure for Canberra – Enhanced policy approach

(600) 600 - - -

Revised Funding Profile – Better Public Housing – New public housing properties

(4,949) 4,949 - - -

Revised Funding Profile – Better Roads for Gungahlin – Horse Park Drive pedestrian overpass

(253) 153 100 - -

Revised Funding Profile – Better Roads for the Inner South – Yarralumla Estate

(145) 145 - - -

Revised Funding Profile – Better Services – Dickson Motor Vehicle Inspection Station

(110) 110 - - -

Revised Funding Profile – Commonwealth Grants – Building Australia's Future Workforce – Skills Reform NP

(11,990) 11,990 - - -

Revised Funding Profile – Commonwealth Grants – Tourism Demand Driver Infrastructure Programme

(173) 173 - - -

Revised Funding Profile – City to the Lake – New Canberra Theatre (Feasibility)

(100) 100 - - -

Revised Funding Profile – Data Storage Infrastructure

(3,249) 3,249 - - -

Revised Funding Profile – Digital Canberra – ACT Government data warehouse and analytics framework

(60) 60 - - -

Revised Funding Profile – Digital Canberra – Digital Economy Initiative (CBR FREE Wifi)

(1,288) 1,288 - - -

Revised Funding Profile – Grant for Development of a New Basketball Centre and Player Amenities

(190) 190 - - -

Revised Funding Profile – Healthy Weight Initiative

(84) 84 - - -

Revised Funding Profile – ICT Transformation – Hybrid cloud computing

- 2,540 2,540 - -

Revised Funding Profile – Insurance Reform (131) - 131 - -Revised Funding Profile – Investment Logic

Mapping(300) 300 - - -

Revised Funding Profile – New Stadium Feasibility Study

(97) 97 - - -

Revised Funding Profile – Securing Electricity Supply in the ACT – Second supply network

(175) (100) 275 - -

Revised Funding Profile – Skilled Capital (Priorities Support Program)

(3,300) 3,300 - - -

Revised Funding Profile – Strategic Asset Management Plan

(670) 670 - - -

Revised Funding Profile – Stromlo Forest Park – Enclosed Oval (Feasibility)

(200) 200 - - -

Revised Funding Profile – Urban Renewal for Civic – Creating a vibrant city centre

(94) 94 - - -

Revised Funding Profile – Urban Renewal Program – Better Public Housing – Allawah Court

(6,257) 6,257 - - -



$'000

2017-18 Budget

$'000

2018-19 Estimate

$'000

2019-20 Estimate

$'000

2020-21 Estimate

$'000

Revised Funding Profile – Urban Renewal Program – Better Public Housing – Karuah

(3,386) 3,386 - - -

Revised Funding Profile – Urban Renewal Program – Better Public Housing – Owen Flats

(55) 55 - - -

Revised Funding Profile – Urban Renewal Program – Better Public Housing – Red Hill housing precinct

(8,961) 8,961 - - -

Revised Funding Profile – User Choice (1,900) 1,900 - - -Revised Funding Profile – Value Sharing Advice (187) (13) 100 100 -Revised Funding Profile – Whole of Government

Software Upgrade(1,815) 1,815 - - -

Commonwealth Grants – National Skills and Workforce Development SPP

32 25 23 29 66

Commonwealth Grants – Skilling Australians Fund - 5,740 5,891 6,366 6,024Loose-fill Asbestos Insulation Eradication Scheme - - - 2,310 2,352Shared Services Base Funding - 5,006 5,183 5,312 5,446Cessation – Better Workplaces for ACT Public

Servants – Civic and Dickson office projects- - - - (508)

Savings – Australia Forum – Investment ready (243) - - - -Savings – Coppins Crossing Road and William

Hovell Drive Intersection and Road Upgrades (Feasibility)

76 - - - -

Savings – Grant for Development of a New Basketball Centre and Player Amenities

- (125) - - -

Savings – Isabella Weir Spillway Upgrades (Feasibility)

145 - - - -

Savings – Kingston Foreshore – Structured Carpark (Feasibility)

(34) - - - -

Savings – Molonglo 3 – Preliminary Geotechnical Investigation (Feasibility)

(80) - - - -

Savings – Molonglo Valley – Implementation of Commitments in the Plan for the Protection of Matters of National Environmental Significance

120 - - - -

Savings – West Belconnen – Stormwater, Hydraulic and Utility Services (Feasibility)

100 - - - -

2017-18 Budget 329,183 335,810 290,263 284,646 285,406


Table 60: Changes to appropriation – Expenses on Behalf of the Territory


$'000

2017-18 Budget

$'000

2018-19 Estimate

$'000

2019-20 Estimate

$'000

2020-21 Estimate

$'000

2016-17 Budget 73,265 72,308 73,820 75,550 75,550

FMA Section 16B Rollovers from 2015-16ACT Concessions Program 4,590 - - - -Bank Charges 656 - - - -First Home Owners Grant 632 - - - -

2017-18 Budget Technical AdjustmentsRevised Indexation Parameters - - - 415 2,555Transfer – Racing and Gaming policy from

CMTEDD to JACSD(4,294) (8,636) (8,809) (8,985) (9,210)

Bank Charges - 184 188 192 197

2017-18 Budget 74,849 63,856 65,199 67,172 69,092


Table 61: Changes to appropriation – Capital Injections, Controlled


$'000

2017-18 Budget

$'000

2018-19 Estimate

$'000

2019-20 Estimate

$'000

2020-21 Estimate

$'000

2016-17 Budget 388,749 248,664 155,771 23,505 23,505

FMA Section 16B Rollovers from 2015-16ACT Smart Parking – Stage 2 252 - - - -Ainslie Music Hub 4 - - - -Arts Buildings and Facilities 20 - - - -Asbestos Removal – Mitchell 78 - - - -Belconnen Arts Centre Stage 2 (Feasibility and

Forward Design)27 - - - -

Better Public Housing – New public housing properties

(48,104) - - - -

Better Roads for Gungahlin – Enhanced Town Centre road network

824 - - - -

Better Roads for Gungahlin – Horse Park Drive duplication

477 - - - -

Canberra Regional Visitors Centre Relocation 3,525 - - - -CBR FREE Wifi 186 - - - -Childcare Centre Upgrades – Stage 2 818 - - - -Childcare Centre Upgrades – Stage 3 23 - - - -Childcare Facilities 42 - - - -Childcare Facilities Upgrades (6) - - - -City Action Plan Stage 1 – Edinburgh Avenue

Improvements1 - - - -

City to Lake – West Basin Public Waterfront Design)

85 - - - -

City to the Lake Arterial Roads Concept Design 636 - - - -Community facilities, including energy efficiency (11) - - - -Community facilities upgrades to public amenity 46 - - - -Cravens Creek Water Quality Control Pond (459) - - - -Data Storage Infrastructure 653 - - - -Dickson Group Centre Intersections – Upgrade 328 - - - -Digital Dividend and Transformational Service

Delivery144 - - - -

Facilities Improvement Program 2014–15 609 - - - -Facilities Improvement Program 2015–16 911 - - - -Fyshwick Depot – Fuel storage tanks removal and

site remediation(56) - - - -

GIO Stadium amenity upgrades 163 - - - -Government Budget Management System 1,036 - - - -Government building safety upgrades 33 - - - -Government Office Accommodation and

Relocation Fit out738 - - - -

Greenway Oval Improvements (Design) 3 - - - -Gungahlin Enclosed Oval – Construction of a

Grandstand114 - - - -

Gungahlin Enclosed Oval (Sports Complex) 72 - - - -Gungahlin Leisure Centre (Design) 428 - - - -Gungahlin Town Centre Roads (Design) 33 - - - -



$'000

2017-18 Budget

$'000

2018-19 Estimate

$'000

2019-20 Estimate

$'000

2020-21 Estimate

$'000

Hazardous Material removal at various Governmnent Buildings

(1) - - - -

Holder Early Childhood Centre 371 - - - -Holt Preschool Refurbishment 61 - - - -Horse Park Drive Extension to Moncrieff Group

Centre(7) - - - -

Horse Park Drive Water Quality Control Pond 47 - - - -iConnect 952 - - - -Improving Arts Facilities – Safety upgrades 178 - - - -Infrastructure Planning and Design 80 - - - -Isabella Weir Spillway – Upgrades 366 - - - -John Gorton Drive Extension to Molonglo 2 and

Group Centre(47) - - - -

Kenny – Floodways, Road Access and Basins (Design)

(14) - - - -

Kingston Foreshore Parking (Design) 119 - - - -Land Titles Business System Modernisation 139 - - - -Loose-fill Asbestos Insulation Eradication Scheme 7,800 - - - -Lyneham Precinct Redevelopment Stage 3 (82) - - - -Lyneham Sports Precinct – Central Amenities

(Design)(27) - - - -

Majura Parkway Estate Development (Design) 2 - - - -Majura Parkway to Majura Road – Link road 477 - - - -Manuka Oval amenity upgrades 27 - - - -Mitchell – Capital Linen – Replacement of HVAC

System31 - - - -

Molonglo 2 – East–West Arterial Road and Services Extension to Cravens Creek (Design)

(3) - - - -

Molonglo 2 – Sewer and Pedestrian Bridge over Molonglo River

376 - - - -

Molonglo 2 – Uriarra Road Upgrade 171 - - - -Molonglo 2 – Water Quality Control Ponds,

Sewers and Cycle path (Design)(52) - - - -

Molonglo 2 – Water Supply, Trunk Sewer and Stormwater Infrastructure – Stage 1

115 - - - -

Molonglo Infrastructure Investment 88 - - - -Motorsport Funding 295 - - - -Namadgi Visitors Centre upgrades (32) - - - -National Arboretum Canberra – Events Terrace

and Precinct Facilites112 - - - -

National Arboretum Canberra – Upgrade of Arboretum demountable buildings to meet Building Code Standards

121 - - - -

National Arboretum Canberra – Water Security 143 - - - -Narrabundah Ball Park – Stage 2 – Design (15) - - - -Narrabundah Long Stay Park – Symonston 829 - - - -Narrabundah Velodrome Upgrade (6) - - - -Netball Infrastructure Upgrades (Design) 25 - - - -North Building – Upgrade of HVAC system 168 - - - -Pools Improvement Program 2013-14 364 - - - -Pools Improvement Program 2014-15 (5) - - - -Pools Improvement Program 2015-16 21 - - - -



$'000

2017-18 Budget

$'000

2018-19 Estimate

$'000

2019-20 Estimate

$'000

2020-21 Estimate

$'000

Public Arts Scheme 57 - - - -Refurbishment of the National Convention Centre 163 - - - -Rego ACT – Ongoing Investment 675 - - - -Restoration of Sportsgrounds – Bonython, Watson

and Weetangera(240) - - - -

Revenue Collection Transformation (596) - - - -Revitalisation of Civic and Braddon (Design) 43 - - - -Roof and Building Safety Upgrades at Government

Depots262 - - - -

Smart Parking 192 - - - -Stromlo Forest Park – Implementation of bushfire

management plan(310) - - - -

Stromlo Forest Park amenity upgrades 10 - - - -Stromlo Forest Park Soil Conservation Works 30 - - - -Stromlo Forest Park Upgrades 28 - - - -Supporting Our Local Sporting Clubs –

Redevelopment of Kippax District Playing Fields

45 - - - -

Temporary Seating for Manuka Oval and other Venues

87 - - - -

The Valley Avenue Extension to Gundaroo Drive (Design)

162 - - - -

Throsby – Access Road – (Design) 28 - - - -Throsby – Access road and western intersection (357) - - - -Traffic Cameras Replacement 13 - - - -Tuggeranong Lakeside Leisure Centre – Water

play park155 - - - -

Upgrade of Commonwealth Park (Floriade) 191 - - - -Upgrade of Early Childhood Facilities 24 - - - -Upgrades to tenanted facilities 24 - - - -Upgrading infrastructure for land release 145 - - - -Urban Renewal Program – Better Public Housing (167) - - - -Urban Renewal Program – Better Public Housing –

Allawah Court12,466 - - - -

Urban Renewal Program – Better Public Housing – Karuah

5,558 - - - -

Urban Renewal Program – Better Public Housing – Owen Flats

2,421 - - - -

Urban Renewal Program – Better Public Housing – Red Hill housing precinct

20,256 - - - -

Urban Renewal Program – City to the Lake – West Basin infrastructure

593 - - - -

Urban Renewal Program – Civic and Braddon public realm improvements

58 - - - -

Urban Renewal Program – Melrose football precinct

86 - - - -

Urban Renewal Program – Molonglo 3 infrastructure

210 - - - -

Urban Renewal Program – Phillip Oval upgrade 157 - - - -Water Demand Management Program (184) - - - -Water management system upgrades 327 - - - -Where Will We Play Outdoor Facilities Water

Reduction Strategies(51) - - - -

Woden Bus Interchange – Early Works (23) - - - -


2016-17 Estimated

Outcome$'000

2017-18 Budget

$'000

2018-19 Estimate

$'000

2019-20 Estimate

$'000

2020-21 Estimate

$'000

Woden Bus Interchange Redevelopment – Stage 1 688 - - - -Woden Bus Interchange Redevelopment (76) - - - -Woden Valley Stormwater Retardation Basins

(Design)153 - - - -

Workcover Integration (27) - - - -Working with Vulnerable People Checks 595 - - - -Wright Outer Asset Protection Zone – Stromlo

Forest Park106 - - - -

Yarralumla – Canberra Brickworks Site Remediation

30 - - - -

2017-18 Budget Policy AdjustmentsBetter services in your community – Tough on

road safety- 176 - - -

Building a better city – Canberra Brickworks – Access road and Dudley Street upgrade

- 4,000 4,000 - -

Building a better city – Civic and Dickson office accommodation

- 1,045 2,727 23,045 12,727

Building a better city – Improving major venues - 1,000 - - -Building a better city – Macarthur House Data

Centre decommissioning program- 3,200 - - -

Improving Arts Facilities – Signage upgrades 79 - - - -More and better jobs – Ensuring continuity of the

Human Resources Information Management System

- 2,750 5,500 2,750 -

More and better jobs – Expanding Belconnen Arts Centre

- 1,282 7,417 6,301 -


- 7,700 3,900 - -

More and better jobs – Modernising government ICT infrastructure

- 2,527 4,853 3,609 4,012

2017-18 Budget Technical AdjustmentsBetter Infrastructure Fund Indexation - - - - 251Transfer – Better Public Housing – New public

housing properties to EPSDD- (147,200) (80,019) - -

Transfer – Better Infrastructure Fund for Land Release Infrastructure to EPSDD

- (295) (302) (310) (318)

Transfer – City to the Lake – New Civic pool to EPSDD

- (400) - - -

Transfer – Improving Our City – Woden bus interchange improvements to EPSDD

- (150) - - -

Transfer – Loose-fill Asbestos Insulation Eradication Scheme to EPSDD

(55,194) (50,472) (29,691) (8,833) (741)

Transfer – Upgrading infrastructure for land release to EPSDD

- (117) - - -

Transfer – Urban Renewal Program – Better Public Housing – Allawah Court to EPSDD

- (11,300) - - -

Transfer – Urban Renewal Program – Better Public Housing – Karuah to EPSDD

- (5,000) - - -

Transfer – Urban Renewal Program – Better Public Housing – Red Hill housing precinct to EPSDD

- (2,300) - - -



$'000

2017-18 Budget

$'000

2018-19 Estimate

$'000

2019-20 Estimate

$'000

2020-21 Estimate

$'000

Transfer – Urban Renewal Program – City to the Lake – West Basin infrastructure to EPSDD

- (7,500) - - -

Transfer – Urban Renewal Program – Civic and Braddon public realm improvements to EPSDD

- (1,050) - - -

Transfer – Woden Valley Stormwater Retardation Basins (Design) to EPSDD

- (230) - - -

Transfer – Better Infrastructure Fund (Sports Facilities Improvement Program and Water Demand Management) to TCCS

- (1,855) (1,901) (1,949) (1,997)

Transfer – City to the Lake Arterial Roads Concept Design to TCCS

- (1,336) - - -

Transfer – Lyneham Sports Precinct Redevelopment – Stage 3 to TCCS

- (490) - - -

Transfer – Narrabundah Ball Park – Stage 2 – Design to TCCS

- (200) - - -

Transfer – Narrabundah Ballpark Upgrade – Best little ballpark in Australia to TCCS

- (3,500) (1,000) - -

Transfer – Urban Renewal Program – Phillip Oval upgrade to TCCS

- (4,100) - - -

Transfer – Water management system upgrades to TCCS

- (140) - - -

Transfer – National Arboretum Canberra – Water Security from TCCS

130 - - - -

Transfer – Better Roads for Gungahlin – Enhanced Town Centre road network to Urban Renewal Program – City to the Lake – West Basin infrastructure

- (2,000) - - -

Transfer – Cravens Creek Water Quality Control Pond to Urban Renewal Program – City to the Lake – West Basin infrastructure

- (1,000) - - -

Transfer – Throsby – Access road and western intersection to Urban Renewal Program – City to the Lake – West Basin infrastructure

- (500) - - -

Transfer – Various projects to Urban Renewal Program – City to the Lake – West Basin infrastructure

- 3,500 - - -

Transfer – City to the Lake – West Basin Public Waterfront (Design) from Cravens Creek Water Quality Control Pond

350 - - - -

Transfer – Cravens Creek Water Quality Control Pond to City to the Lake – West Basin Public Waterfront (Design)

(350) - - - -

Transfer – Cravens Creek Water Quality Control Pond to Cultural Facilities Corporation

- (300) - - -

Transfer – ICT Transformation – Hybrid cloud computing from Capital Injection to Controlled Recurrent Payments

- (2,540) (2,540) - -

Transfer – Manuka Oval Cricket Broadcast and Media Facilities from Motorsports Fund – Capital Improvements to Fairbairn Park (Design)

320 - - - -

Transfer – Motorsports Fund – Capital Improvements to Fairbairn Park (Design) to Manuka Oval Cricket Broadcast and Media Facilities

(320) - - - -



$'000

2017-18 Budget

$'000

2018-19 Estimate

$'000

2019-20 Estimate

$'000

2020-21 Estimate

$'000

Transfer – Rego ACT – Ongoing investment from JACS

- - 431 431 431

Transfer – Revenue Collection Transformation from Controlled Recurrent Payments to Capital Injection

- 1,500 - - -

Revised Funding Profile – ACT Smart Parking – Stage 2

(52) 52 - - -

Revised Funding Profile – Better Public Housing – New public housing properties

(26,000) 26,000 - - -

Revised Funding Profile – Better Roads for Gungahlin – Enhanced Town Centre road network

(624) 624 - - -

Revised Funding Profile – Better Roads for Gungahlin – Gungahlin town centre road network improvements

(4,444) 1,944 2,500 - -

Revised Funding Profile – Better Roads for Gungahlin – Horse Park Drive duplication

(2,145) (855) 3,000 - -

Revised Funding Profile – Better Services – Weston Creek and Stromlo swimming pool and leisure centre

(2,940) 2,940 - - -

Revised Funding Profile – Canberra Regional Visitors Centre Relocation

(562) 562 - - -

Revised Funding Profile – Caring For Our Environment – Lake Tuggeranong Water Quality Improvement – Stage 2

- (2,000) 2,000 - -

Revised Funding Profile – City to the Lake – New Civic pool

(400) 400 - - -

Revised Funding Profile – City to the Lake Arterial Roads Concept Design

(1,336) 1,336 - - -

Revised Funding Profile – Cravens Creek Water Quality Control Pond

200 (200) - - -

Revised Funding Profile – Fyshwick Depot – Fuel storage tanks removal and site remediation

(200) 200 - - -

Revised Funding Profile – Government Budget Management System

(3,177) 3,177 - - -

Revised Funding Profile – Government Office Accommodation and Relocation Fitout

(300) 300 - - -

Revised Funding Profile – iConnect 1,788 (1,788) - - -Revised Funding Profile – ICT Transformation –

Hybrid cloud computing(4,800) 1,760 3,040 - -

Revised Funding Profile – Improved Arts Facilities for Canberra – Street Theatre

180 (180) - - -

Revised Funding Profile – Improving Our City – Woden bus interchange improvements

(150) 150 - - -

Revised Funding Profile – Improving Our Suburbs – New Molonglo Valley Infrastructure

(5,552) (3,448) 9,000 - -

Revised Funding Profile – Improving Road Safety – Traffic camera adjudication system upgrades

(1,160) 1,160 - - -

Revised Funding Profile – Isabella Weir Spillway – Upgrades

(753) 753 - - -

Revised Funding Profile – Land Titles Business System Modernisation

(1,041) 1,041 - - -

Revised Funding Profile – Lyneham Sports Precinct Redevelopment – Stage 3

(490) 490 - - -

Revised Funding Profile – Majura Parkway to Majura Road – Link road

(2,633) 633 2,000 - -



$'000

2017-18 Budget

$'000

2018-19 Estimate

$'000

2019-20 Estimate

$'000

2020-21 Estimate

$'000

Revised Funding Profile – Molonglo 2 – Sewer and Pedestrian Bridge over Molonglo River

(766) 766 - - -

Revised Funding Profile – Molonglo 2 – Uriarra Road Upgrade

(111) 111 - - -

Revised Funding Profile – Molonglo 2 – Water Quality Control Ponds, Sewers and Cyclepath (Design)

(353) (356) 709 - -

Revised Funding Profile – Molonglo 2– Water Supply, Trunk Sewer And Stormwater Infrastructure – Stage 1

(65) 65 - - -

Revised Funding Profile – Molonglo Infrastructure Investment

(588) 588 - - -

Revised Funding Profile – More Efficient Public Service Administration – Long service leave calculations

(1,016) 1,016 - - -

Revised Funding Profile – Narrabundah Ball Park – Stage 2 – Design

(200) 200 - - -

Revised Funding Profile – Narrabundah Ballpark Upgrade – Best little ballpark in Australia

(1,000) 1,000 - - -

Revised Funding Profile – National Arboretum Canberra – Water Security

(273) 273 - - -

Revised Funding Profile – National Arboretum Canberra – Water security Stage 2

(100) 100 - - -

Revised Funding Profile – North Building – Upgrade of HVAC system

(600) 600 - - -

Revised Funding Profile – Public Arts Scheme (190) 190 - - -Revised Funding Profile – Refurbishment of the

National Convention Centre(600) 600 - - -

Revised Funding Profile – Rego ACT – Ongoing investment

(235) 235 - - -

Revised Funding Profile – Revenue Collection Transformation

3,316 (3,316) - - -

Revised Funding Profile – Smarter Regulation – Red tape reduction

(445) 445 - - -

Revised Funding Profile – Stromlo Forest Park – Implementation of bushfire management plan

(800) 800 - - -

Revised Funding Profile – Stromlo Forest Park Planning and Infrastructure

(900) 900 - - -

Revised Funding Profile – Throsby – Access road and western intersection

(333) 333 - - -

Revised Funding Profile – Upgrading infrastructure for land release

(117) 117 - - -

Revised Funding Profile – Urban Renewal Program – Better Public Housing – Allawah Court

(11,300) 11,300 - - -

Revised Funding Profile – Urban Renewal Program – Better Public Housing – Karuah

(5,000) 5,000 - - -

Revised Funding Profile – Urban Renewal Program – Better Public Housing – Red Hill housing precinct

(2,300) 2,300 - - -

Revised Funding Profile – Urban Renewal Program – City to the Lake – West Basin infrastructure

(4,000) 4,000 - - -

Revised Funding Profile – Urban Renewal Program – Civic and Braddon public realm improvements

(1,050) 1,050 - - -



$'000

2017-18 Budget

$'000

2018-19 Estimate

$'000

2019-20 Estimate

$'000

2020-21 Estimate

$'000

Revised Funding Profile – Urban Renewal Program – Molonglo 3 infrastructure

(90) (910) 1,000 - -

Revised Funding Profile – Urban Renewal Program – Phillip Oval upgrade

(3,600) 3,600 - - -

Revised Funding Profile – Water management system upgrades

(140) 140 - - -

Revised Funding Profile – Woden Valley Stormwater Retardation Basins (Design)

(230) 230 - - -

Revised Funding Profile – Working with Vulnerable People Checks

(679) 679 - - -

Cessation – Better Services – Weston Creek and Stromlo swimming pool and leisure centre

- - - - (11,000)

Savings – Ainslie Music Hub (4) - - - -Savings – Arts Buildings and Facilities (20) - - - -Savings – Asbestos Removal – Mitchell (78) - - - -Savings – Canberra CBD Upgrade Program - (343) - - -Savings – Canberra CBD Upgrade Stage 2 – Merry

go–round and Veterans' Park- (302) - - -

Savings – CBR FREE Wifi (186) - - - -Savings – Childcare Centre Upgrades – Stage 2 (818) - - - -Savings – Childcare Centre Upgrades – Stage 3 (23) - - - -Savings – Childcare Facilities (42) - - - -Savings – Childcare Facilities upgrades 6 - - - -Savings – City Action Plan Stage 1 – Edinburgh

Avenue Improvements(1) - - - -

Savings – Community facilities, including energy efficiency

11 - - - -

Savings – Facilities Improvement Program 201415 (609) - - - -Savings – Government building safety upgrades (33) - - - -Savings – Greenway Oval Improvements (Design) (3) - - - -Savings – Gungahlin Enclosed Oval – Construction

of a Grandstand(114) - - - -

Savings – Gungahlin Enclosed Oval (Sports Complex)

(72) - - - -

Savings – Gungahlin Leisure Centre (Design) (428) - - - -Savings – Hazardous Material removal at various

Government Buildings1 - - - -

Savings – Holder Early Childhood Centre (371) - - - -Savings – Horse Park Drive Extension to Moncrieff

Group Centre7 - - - -

Savings – Kenny – Floodways, Road Access and Basins (Design)

14 - - - -

Savings – Kingston Foreshore Parking (Design) (119) - - - -Savings – Lyneham Sports Precinct – Central

Amenities (Design)(367) - - - -

Savings – Majura Parkway Estate Development (Design)

(2) - - - -

Savings – Mitchell – Capital Linen – Replacement of HVAC System

(31) - - - -

Savings – Molonglo 2 – East–West Arterial Road and Services Extension to Cravens Creek (Design)

3 - - - -

Savings – Motorsport Funding (295) - - - -



$'000

2017-18 Budget

$'000

2018-19 Estimate

$'000

2019-20 Estimate

$'000

2020-21 Estimate

$'000

Savings – Namadgi Visitors Centre upgrades 32 - - - -Savings – Narrabundah Long Stay Park –

Symonston(829) - - - -

Savings – Pools Improvement Program 2013-14 (364) - - - -Savings – Pools Improvement Program 2014-15 5 - - - -Savings – Restoration of Sportsgrounds –

Bonython, Watson and Weetangera240 - - - -

Savings – Revitalisation of Civic and Braddon (Design)

(43) - - - -

Savings – Roof and Building Safety Upgrades at Government Depots

(262) - - - -

Savings – Stromlo Forest Park – Implementation of bushfire management plan

- (1,000) - - -

Savings – Supporting Our Local Sporting Clubs – Redevelopment of Kippax District Playing Fields

(45) - - - -

Savings – The Valley Avenue Extension to Gundaroo Drive (Design)

(162) - - - -

Savings – Traffic Cameras Replacement (13) - - - -Savings – Tuggeranong Lakeside Leisure Centre –

Water play park(155) - - - -

Savings – Upgrade of Commonwealth Park (Floriade)

(191) - - - -

Savings – Upgrade of Early Childhood Facilities (24) - - - -Savings – Upgrades to tenanted facilities (24) - - - -Savings – Urban Renewal Program – Better Public

Housing – Red Hill housing precinct(15,000) - - - -

Savings – Water Demand Management Program 184 - - - -Savings – "Where Will We Play" Outdoor Facilities

Water Reduction Strategies51 - - - -

Savings – Woden Bus Interchange – Early Works 23 - - - -Savings – Woden Bus Interchange Redevelopment 76 - - - -Savings – Workcover Integration 27 - - - -Savings – Wright Outer Asset Protection Zone –

Stromlo Forest Park(106) - - - -

Commonwealth Grant – National Register of Foreign Ownership of Land Titles

400 - - - -

Loose-fill Asbestos Insulation Eradication Scheme - - - 8,092 -

2017-18 Budget 244,521 98,831 92,395 56,641 26,870


Table 62: Changes to appropriation – Capital Injections, Territorial


$'000

2017-18 Budget

$'000

2018-19 Estimate

$'000

2019-20 Estimate

$'000

2020-21 Estimate

$'000

2016-17 Budget 49,000 55,000 52,000 82,000 82,000

2017-18 Budget Technical AdjustmentsRevised Funding Profile – Land Rent Scheme (28,000) (7,000) (2,000) (28,000) 2,000

2017-18 Budget 21,000 48,000 50,000 54,000 84,000


Summary of Chief Minister, Treasury and Economic Development Directorate 201718 Infrastructure Program

Table 63: 201718 Chief Minister, Treasury and Economic Development Directorate Infrastructure Program

Project 2017-18

$'000

2018-19

$'000

2019-20

$'000

2020-21

$'000

Four YearInvestment

$'000

PhysicalCompletion

Date

CAPITAL WORKS PROGRAM

New Capital WorksBuilding a better city – Canberra

Brickworks – Access road and Dudley Street upgrade

4,000 4,000 - - 8,000 Jun-19

Building a better city – Improving major venues

1,000 - - - 1,000 Jun-18

Building a better city – Indoor sports centres– Early Planning

160 - - - 160 Jun-18

More and better jobs – Canberra Theatre Complex community consultation

100 - - - 100 Jun-18

More and better jobs – Expanding Belconnen Arts Centre

1,282 7,417 6,301 15,000 Jun-20


7,700 3,900 - - 11,600 Jun-19

Total New Capital Works 14,242 15,317 6,301 - 35,860

Better Infrastructure Fund

ACT Property UpgradesBuilding and safety upgrades at various

government buildings1,020 - - - 1,020 Jun-18

Building refurbishment including roofing, energy efficiency upgrades and internal remediation – various buildings

500 - - - 500 Jun-18

Building renovations and extensions including modifications to amenities – various buildings

500 - - - 500 Jun-18

Childcare centre upgrades 470 - - - 470 Jun-18Fire services upgrades at various

government buildings155 - - - 155 Jun-18

Grounds upgrades including fencing and landscaping – various buildings

150 - - - 150 Jun-18

Hazardous material removal – various government buildings

400 - - - 400 Jun-18

Pools Improvement Program 785 - - - 785 Jun-18Upgrades to address ageing

infrastructure – various government buildings

395 - - - 395 Jun-18

Upgrades to heritage buildings 405 - - - 405 Jun-18


Project 2017-18

$'000

2018-19

$'000

2019-20

$'000

2020-21

$'000

Four YearInvestment

$'000

PhysicalCompletion

Date

Arts Buildings and FacilitiesMore and better jobs – Improving arts

facilities145 - - - 145 Jun-18

Upgrades to arts buildings 375 - - - 375 Jun-18

VenuesArboretum and buildings 250 - - - 250 Jun-18Exhibition Park 540 - - - 540 Jun-18GIO Stadium 525 - - - 525 Jun-18Manuka Oval 380 - - - 380 Jun-18Stromlo Forest Park 120 - - - 120 Jun-18

EventsFloriade 303 - - - 303 Jun-18

Unallocated Better Infrastructure Fund - 7,603 7,794 7,988 23,385 Ongoing

Total Better Infrastructure Fund 7,418 7,603 7,794 7,988 30,803


Capital Work In ProgressBetter Roads for Gungahlin – Enhanced

Town Centre road network624 - - - 624 Dec-17

Better Roads for Gungahlin – Gungahlin town centre road network improvements

1,944 2,500 - - 4,444 Jun-19

Better Roads for Gungahlin – Horse Park Drive duplication

2,945 3,000 - - 5,945 Jun-19

Better Roads for Gungahlin – Horse Park Drive pedestrian overpass

153 100 - - 253 Jun-19

Better Roads for the Inner South – Yarralumla Estate

145 - - - 145 Jun-18

Better Services – Weston Creek and Stromlo Swimming pool and leisure centre

10,940 11,000 11,000 - 32,940 Jun-20

Canberra Regional Visitors Centre Relocation

562 - - - 562 Jun-18

Caring for our Environment – Lake Tuggeranong Water Quality Improvement–Stage 2

500 8,500 - - 9,000 Jun-19

Cravens Creek Water Quality Control Pond

200 - - - 200 Sep-17

Fyshwick Depot – Fuel storage tanks removal and site remediation

200 - - - 200 Jun-18

Government Office Accomodation and Relocation Fitout

300 - - - 300 Jun-18

Grant for Development of a New Basketball Centre and Player Amenities

65 - - - 65 Jun-18

Improving Our Suburbs – New Molonglo Valley Infrastructure

9,552 23,370 - - 32,922 Jun-19


Project 2017-18

$'000

2018-19

$'000

2019-20

$'000

2020-21

$'000

Four YearInvestment

$'000

PhysicalCompletion

Date

Isabella Weir Spillway Upgrades 7,688 - - - 7,688 Jun-18Majura Parkway to Majura Road – Link

road3,059 2,000 - - 5,059 Jun-19

Molonglo 2 – Sewer and Pedestrian Bridge over Molonglo River

766 - - - 766 Dec-17

Molonglo 2 – Uriarra Road Upgrade 111 - - - 111 Dec-17Molonglo 2 – Water Quality Control

Ponds, Sewers and Cyclepath (Design)- 709 - - 709 Jun-19

Molonglo 2 – Water Supply, Trunk Sewer and Stormwater Infrastructure – Stage 1

65 - - - 65 Dec-17

Molonglo Infrastructure Investment 588 - - - 588 Dec-17National Arboretum Canberra – Water

Security273 - - - 273 May-18

National Arboretum Canberra – Water security Stage 2

100 - - - 100 Jun-18

New Stadium Feasibility Study 97 - - - 97 Jun-18Office Accommodation 500 500 500 500 2,000 OngoingPublic Arts Scheme 190 - - - 190 Dec-17Stromlo Forest Park – Enclosed Oval

(Feasibility)200 - - - 200 Jun-18

Stromlo Forest Park – Implementation of Bushfire Management Plan

300 - - - 300 Jun-18

Stromlo Forest Park Planning and Infrastructure

900 - - - 900 Jun-18

Throsby – Access road and western intersection

533 - - - 533 Jun-18

Throsby – Multisport Complex (Design) 185 - - - 185 Jun-18Urban Renewal Program – Melrose

football precinct495 - - - 495 Feb-18

Urban Renewal Program – Molonglo 3 infrastructure

760 1,000 - - 1,760 Jun-19

Total Work In Progress 44,940 52,679 11,500 500 109,619

Total Capital Works 66,600 75,599 25,595 8,488 176,282

PROPERTY, PLANT AND EQUIPMENT (PPE)New PPE Capital WorksBetter services in your community –

Tough on road safety176 - - - 176 Jun-18

Building a better city – Civic and Dickson office accomodation

1,045 2,727 23,045 12,727 39,544 Jun-21

Total New PPE Capital Works 1,221 2,727 23,045 12,727 39,720PPE Work In ProgressACT Smart Parking – Stage 2 52 - - - 52 Jun-18North Building – Upgrade of HVAC

system1,600 - - - 1,600 Dec-17

Refurbishment of the National Convention Centre

600 - - - 600 Jun-18

Total PPE Work In Progress 2,252 - - - 2,252TOTAL PROPERTY, PLANT AND

EQUIPMENT3,473 2,727 23,045 12,727 41,972

Project 2017-18 2018-19 2019-20 2020-21 Four YearInvestment

PhysicalCompletion


$'000 $'000 $'000 $'000 $'000 Date

INFORMATION AND COMMUNICATION TECHNOLOGY (ICT)

ICT New Capital WorksBuilding a better city – Macarthur House

Data Centre decommissioning program3,200 - - - 3,200 Jun-18

More and better jobs – Ensuring continuity of the Human Resources Information Management System

2,750 5,500 2,750 - 11,000 Jun-20

More and Better Jobs – Improving services through better data analytics

633 - - - 633 Jun-18

More and better jobs – Modernising Government ICT Infrastructure

2,527 4,853 3,609 4,012 15,001 Jun-21

Total ICT New Capital Works 9,110 10,353 6,359 4,012 29,834

ICT Work In ProgressDigital Canberra – Protecting our data 310 - - - 310 Jun-18Equipment Purchase Funding 1,000 1,000 1,000 1,000 4,000 OngoingGovernment Budget Management System 3,177 - - - 3,177 Jun-18iConnect 5,852 1,673 - - 7,525 Jun-19ICT Transformation – Hybrid cloud

computing500 500 - - 1,000 Jun-19

Improving Road Safety – Traffic camera adjudication system upgrades

1,160 - - - 1,160 Dec-17

Land Titles Business System Modernisation 1,041 - - - 1,041 Jun-18More Efficient Public Service

Administration – Long service leave calculations

1,016 - - - 1,016 Jun-18

Rego ACT – Ongoing investment 666 431 431 431 1,959 OngoingRevenue Collection Transformation 3,684 - - - 3,684 Apr-18Smarter Regulation – Red tape reduction 1,812 - - - 1,812 Jun-18Working with Vulnerable People Checks 992 313 313 313 1,931 OngoingTotal ICT Work In Progress 21,210 3,917 1,744 1,744 28,615TOTAL INFORMATION AND

COMMUNICATION TECHNOLOGY30,320 14,270 8,103 5,756 58,449

TOTAL INFRASTRUCTURE INVESTMENT PROGRAM

100,393 92,596 56,743 26,971 276,703


Financial Statements – Controlled (GGS)

Table 64: Chief Minister, Treasury and Economic Development Directorate: Operating Statement

2016-17 Budget

$'000


$'000

2017-18 Budget

$'000

Var%

2018-19 Estimate

$'000

2019-20 Estimate

$'000

2020-21 Estimate

$'000

Income

Revenue394,159 Controlled Recurrent

Payments329,183 335,810 2 290,263 284,646 285,406

229,081 Land Revenue 0 0 - 0 0 0296 Taxes, Fees and Fines 412 427 4 442 446 456

288,675 User Charges 269,867 274,937 2 284,757 288,322 294,7411,799 Interest 1,527 1,497 -2 1,453 1,413 1,3723,012 Resources Received Free of

Charge4,324 4,166 -4 4,195 4,251 4,403

12,912 Other Revenue 5,425 5,759 6 5,158 5,182 5,328

929,934 Total Revenue 610,738 622,596 2 586,268 584,260 591,706

Gains0 Gains on Loose-Fill Asbestos

Insulation Eradication Scheme Land Sales

5,281 0 -100 0 0 0

42 Other Gains 41 45 10 47 47 48

42 Total Gains 5,322 45 -99 47 47 48

929,976 Total Income 616,060 622,641 2 586,315 584,307 591,754

Expenses 231,957 Employee Expenses 220,525 226,691 3 225,154 226,973 228,714

38,686 Superannuation Expenses 37,414 36,389 -3 36,328 36,393 36,466295,020 Supplies and Services 230,716 247,922 7 231,830 223,912 218,523

75,356 Depreciation and Amortisation

69,520 56,121 -19 62,175 69,375 72,562

76,583 Grants and Purchased Services

82,981 77,211 -7 53,676 53,470 52,614

187,991 Cost of Goods Sold 0 0 - 0 0 01,773 Borrowing Costs 1,291 1,328 3 1,353 1,308 1,259

28,838 Other Expenses 22,054 12,809 -42 14,975 17,353 18,45436,738 Transfer Expenses 5,008 1,081 -78 1,094 1,110 1,108

972,942 Total Expenses 669,509 659,552 -1 626,585 629,894 629,700

-42,966 Operating Result -53,449 -36,911 37 -40,270 -45,587 -37,946


2016-17 Budget

$'000


$'000

2017-18 Budget

$'000

Var%

2018-19 Estimate

$'000

2019-20 Estimate

$'000

2020-21 Estimate

$'000

66Other Comprehensive IncomeItems that will not be Reclassified Subsequently to Profit or Loss

66 Increase/(Decrease) in Asset Revaluation Surplus

-84 -262,806 # -2,451 0 0

66 Total Other Comprehensive Income

-84 -262,806 # -2,451 0 0

-42,900 Total Comprehensive Income

-53,533 -299,717 -460 -42,721 -45,587 -37,946


Table 65: Chief Minister, Treasury and Economic Development Directorate: Balance Sheet

Budgetat

30/6/17 $'000

Est.Outcomeas at

30/6/17$'000

Budgetat

30/6/18 $'000

Var%

Estimateat

30/6/19 $'000

Estimateat

30/6/20 $'000

Estimateat

30/6/21 $'000

Current Assets75,349 Cash and Cash Equivalents 31,856 31,104 -2 36,816 42,940 48,98678,180 Receivables 90,812 91,077 .. 91,387 91,679 93,044

292 Inventories 1,238 1,239 .. 1,240 1,241 1,2428,097 Other Assets 12,138 11,558 -5 11,630 10,219 9,393

161,918 Total Current Assets 136,044 134,978 -1 141,073 146,079 152,665

Non Current Assets66,929 Receivables 65,955 63,616 -4 61,241 58,866 55,491

1,629,436 Property, Plant and Equipment

1,180,909 890,365 -25 916,562 1,041,281 1,008,802

2,600 Investment Properties 5,410 5,410 - 5,410 5,410 5,41016,479 Intangible Assets 16,593 48,021 189 48,286 42,610 33,634

467,177 Capital Works in Progress 335,155 222,893 -33 205,728 73,838 75,893196 Other Assets 7,841 4,876 -38 1,912 430 430

2,182,817 Total Non Current Assets 1,611,863 1,235,181 -23 1,239,139 1,222,435 1,179,660

2,344,735 TOTAL ASSETS 1,747,907 1,370,159 -22 1,380,212 1,368,514 1,332,325

Current Liabilities21,919 Payables 21,773 23,056 6 25,306 27,537 34,23515,995 Interest-Bearing Liabilities 16,066 16,069 .. 16,083 16,081 17,09578,006 Employee Benefits 78,115 81,275 4 84,480 87,737 92,48232,980 Other Provisions 219 219 - 219 219 21915,166 Other Liabilities 12,481 12,552 1 12,561 12,681 13,789

164,066 Total Current Liabilities 128,654 133,171 4 138,649 144,255 157,820

Non Current Liabilities66,989 Interest-Bearing Liabilities 68,004 65,338 -4 62,657 59,979 56,287

5,490 Employee Benefits 5,733 5,857 2 5,980 6,104 6,303261,116 Other Provisions 897 887 -1 887 887 887

262 Other Liabilities 14,633 13,909 -5 13,185 12,351 11,043

333,857 Total Non Current Liabilities 89,267 85,991 -4 82,709 79,321 74,520

497,923 TOTAL LIABILITIES 217,921 219,162 1 221,358 223,576 232,340

1,846,812 NET ASSETS 1,529,986 1,150,997 -25 1,158,854 1,144,938 1,099,985


Budgetat

30/6/17 $'000

Est.Outcomeas at

30/6/17$'000

Budgetat

30/6/18 $'000

Var%

Estimateat

30/6/19 $'000

Estimateat

30/6/20 $'000

Estimateat

30/6/21 $'000

REPRESENTED BY FUNDS EMPLOYED

1,370,973 Accumulated Funds 1,073,314 957,131 -11 967,439 953,523 908,570475,839 Asset Revaluation Surplus 456,672 193,866 -58 191,415 191,415 191,415

1,846,812 TOTAL FUNDS EMPLOYED 1,529,986 1,150,997 -25 1,158,854 1,144,938 1,099,985


Table 66: Chief Minister, Treasury and Economic Development Directorate: Statement of Changes in Equity

Budgetat

30/6/17 $'000

Est.Outcomeas at

30/6/17$'000

Budgetat

30/6/18 $'000

Var%

Estimateat

30/6/19 $'000

Estimateat

30/6/20 $'000

Estimateat

30/6/21 $'000

Opening Equity1,467,125 Opening Accumulated Funds 1,380,669 1,073,314 -22 957,131 967,439 953,523

475,773 Opening Asset Revaluation Reserve

456,756 456,672 .. 193,866 191,415 191,415

1,942,898 Balance at the Start of the Reporting Period

1,837,425 1,529,986 -17 1,150,997 1,158,854 1,144,938

Comprehensive Income-42,966 Operating Result - Including

Economic Flows-53,449 -36,911 31 -40,270 -45,587 -37,946

66 Inc/Dec in Asset Revaluation Reserve Surpluses

-84 -262,806 # -2,451 0 0

-42,900 Total Comprehensive Income -53,533 -299,717 -460 -42,721 -45,587 -37,946

0 Total Movement in Reserves 0 0 - 0 0 0

Transactions Involving Owners Affecting Accumulated Funds388,749 Capital Injections 244,521 98,831 -60 92,395 56,641 26,870

-193,406 Capital Distributions to Government

-27,901 -7,121 74 -8,006 -9,678 -10,828

-237,198 Inc/Dec in Net Assets due to Admin Restructure

-462,571 -161,344 65 -21,562 0 0

-11,331 Dividend Approved -7,955 -9,638 -21 -12,249 -15,292 -23,049

-53,186 Total Transactions Involving Owners Affecting Accumulated Funds

-253,906 -79,272 69 50,578 31,671 -7,007

Closing Equity1,370,973 Closing Accumulated Funds 1,073,314 957,131 -11 967,439 953,523 908,570

475,839 Closing Asset Revaluation Reserve

456,672 193,866 -58 191,415 191,415 191,415

1,846,812 Balance at the end of the Reporting Period

1,529,986 1,150,997 -25 1,158,854 1,144,938 1,099,985


Table 67: Chief Minister, Treasury and Economic Development Directorate: Cash Flow Statement

2016-17 Budget

$'000


$'000

2017-18 Budget

$'000

Var %

2018-19 Estimate

$'000

2019-20 Estimate

$'000

2020-21 Estimate

$'000

CASH FLOWS FROM OPERATING ACTIVITIESReceipts

393,691 Controlled Recurrent Payments

328,715 335,348 2 289,790 284,173 284,934

468 Payment for Community Service Obligations

468 462 -1 473 473 472

296 Taxes, Fees and Fines 412 427 4 442 446 456288,720 User Charges 280,491 285,810 295,919 299,757 306,491

1,804 Interest Received 1,463 1,409 -4 1,361 1,321 1,280743,636 Other 736,251 753,591 2 752,151 752,315 752,331

1,428,615 Operating Receipts 1,347,800 1,377,047 2 1,340,136 1,338,485 1,345,964

Payments229,339 Employee 222,181 223,971 1 222,332 223,960 225,275

38,528 Superannuation 37,368 36,228 -3 36,233 36,436 36,542295,726 Supplies and Services 238,717 250,691 5 229,604 221,006 217,136


92,553 78,744 -15 54,823 63,144 62,288

1,867 Borrowing Costs 1,236 1,273 3 1,280 1,254 1,20536,738 Transfer of Territory Receipts

to the ACT Government5,008 1,081 -78 1,094 1,038 1,036

758,290 Other 751,609 757,582 1 756,856 757,128 757,6711,446,796 Operating Payments 1,348,672 1,349,570 .. 1,302,222 1,303,966 1,301,153

-18,181 NET CASH INFLOW/(OUTFLOW) FROM OPERATING ACTIVITIES

-872 27,477 # 37,914 34,519 44,811

CASH FLOWS FROM INVESTING ACTIVITIESReceipts

229,091 Proceeds from Sale of Property, Plant and Equipment

27,261 13 -100 14 22 29

308 Repayment of Loan Principal 291 2,727 837 2,677 2,677 2,677229,399 Investing Receipts 27,552 2,740 -90 2,691 2,699 2,706

Payments327,713 Purchase of Property, Plant

and Equipment230,879 78,550 -66 79,801 43,862 27,820

75,963 Purchase of Land and Intangibles

32,569 31,828 -2 24,565 16,224 3,967

62 Loans Provided (Loans Receivable)

0 0 - 0 0 0

403,738 Investing Payments 263,448 110,378 -58 104,366 60,086 31,787

-174,339 NET CASH INFLOW/(OUTFLOW) FROM INVESTING ACTIVITIES

-235,896 -107,638 54 -101,675 -57,387 -29,081


2016-17 Budget

$'000


$'000

2017-18 Budget

$'000

Var %

2018-19 Estimate

$'000

2019-20 Estimate

$'000

2020-21 Estimate

$'000

CASH FLOWS FROM FINANCING ACTIVITIESReceipts

388,749 Capital Injections 244,521 98,831 -60 92,395 56,641 26,870946 Proceeds from Borrowings 763 0 -100 0 0 0

0 Receipts of Transferred Cash Balances

946 0 -100 0 0 0

389,695 Financing Receipts 246,230 98,831 -60 92,395 56,641 26,870

Payments193,406 Distributions to Government 27,901 7,121 -74 8,006 9,677 10,827

51 Repayment of Borrowings 90 2,663 # 2,667 2,680 2,67811,331 Payment of Dividend 7,955 9,638 21 12,249 15,292 23,049

204,788 Financing Payments 35,946 19,422 -46 22,922 27,649 36,554

184,907 NET CASH INFLOW/(OUTFLOW) FROM FINANCING ACTIVITIES

210,284 79,409 -62 69,473 28,992 -9,684

-7,613 NET INCREASE / (DECREASE) IN CASH AND CASH EQUIVALENTS

-26,484 -752 97 5,712 6,124 6,046

69,559 CASH AT THE BEGINNING OF REPORTING PERIOD

44,937 18,453 -59 17,701 23,413 29,537

61,946 CASH AT THE END OF REPORTING PERIOD

18,453 17,701 -4 23,413 29,537 35,583


Notes to the Controlled Budget Statements

During 2016-17, CMTEDD has been impacted by several function transfers to other directorates as a result of Administrative Arrangements (AAs).

Administrative Arrangements 2016 (No 4) (Notifiable Instrument NI2016-608) came into effect on 1 November 2016, which transferred responsibility from CMTEDD for the Racing and Gaming Policy function to the Justice and Community Safety Directorate (JACSD) and the Asbestos Response Taskforce to the Environment, Planning and Sustainable Development Directorate (EPSDD).

During 2016-17, responsibility for the management of the Improving Road Safety – Traffic camera adjudication system upgrades initiative was also transferred from ACT Policing, JACSD, to Access Canberra, CMTEDD.

In addition to the above, effective 1 July 2017, responsibility for Sportsground Operations will be transferred to the Transport Canberra and City Services (TCCS) Directorate and the Land Development and Public Housing Renewal functions transferred to EPSDD.

Budgeted decreases in the 2016-17 estimated outcome from the original budget and in the 2017-18 Budget from the 2016-17 estimated outcome resulting from these transfers are summarised in Table 68 and Table 69 below, respectively.


Table 68: Decreases in the 2016-17 Estimated Outcome from the Original Budget Resulting from Administrative Arrangements and Other Transfers from the Chief Minister, Treasury and Economic Development Directorate to Other Agencies During 2016-17

JACSD Road

Safety $'000

Racing and Gambling

Policy $'000

Asbestos Response Taskforce

$'000

Total

$'000

Operating Statement

IncomeRevenueControlled Recurrent Payments 196 -95 -25,322 -25,221Total Revenue 196 -95 -25,322 -25,221GainsGains on Loose-Fill Asbestos Insulation Eradication Scheme Land Sales

0 0 -35,809 -35,809

Other Gains 0 0 -2 -2Total Gains 0 0 -35,811 -35,811Total Income 196 -95 -61,133 -61,032

Expenses Employee Expenses 148 -68 -4,280 -4,200Superannuation Expenses 14 -11 -566 -563Supplies and Services 34 -16 -8,793 -8,775Other Expenses 0 0 -344 -344Transfer Expenses 0 0 -31,730 -31,730Total Expenses 196 -95 -45,713 -45,612

Operating Result 0 0 -15,420 -15,420

Balance Sheet

Current AssetsCash and Cash Equivalents 0 0 -19,420 -19,420Receivables 0 0 -584 -584Assets Held for Sale 0 0 -54,258 -54,258Total Current Assets 0 0 -74,262 -74,262Non Current AssetsProperty, Plant and Equipment 0 0 -262,434 -262,434Total Non-Current Assets 0 0 -262,434 -262,434Total Assets 0 0 -336,696 -336,696

Current and Non-Current LiabilitiesPayables 0 0 -4,467 -4,467Employee Benefits 0 0 -1,469 -1,469Other Provisions 0 0 -160,175 -160,175Other Liabilities 0 0 -626 -626Total Current and Non-Current Liabilities 0 0 -166,737 -166,737

Net Assets 0 0 -169,959 -169,959


Table 69: Decreases in the 2017-18 Budget from the 2016-17 Estimated Outcome Resulting from Administrative Arrangements and Other Transfers from the Chief Minister, Treasury and Economic Development Directorate to Other Agencies During 2016-17

Racing and Gambling

Policy $'000

Asbestos Response Taskforce

$'000

Sportsground Operations

$'000

PublicHousing

Renewal$'000

Land Policy

$'000

Total

$'000

Operating Statement

IncomeRevenueControlled Recurrent Payments 52 -15,981 -9,159 -38,122 -4,463 -67,673User Charges 0 0 -1,723 0 0 -1,723Total Revenue 52 -15,981 -10,882 -38,122 -4,463 -69,396GainsGains on Loose-Fill Asbestos Insulation

Eradication Scheme Land Sales0 -1,269 0 0 0 -1,269

Other Gains 0 -2 0 0 0 -2Total Gains 0 -1,271 0 0 0 -1,271Total Income 52 -17,252 -10,882 -38,122 -4,463 -70,667

Expenses Employee Expenses 43 -523 -2,202 0 -1,592 -4,274Superannuation Expenses 8 79 -177 0 -238 -328Supplies and Services 1 -488 -8,494 -38,122 -603 -47,706Depreciation and Amortisation 0 36 -18,345 0 0 -18,309Grants and Purchased Services 0 0 0 0 -2,041 -2,041Other Expenses 0 -157 -9 0 11 -155Transfer Expenses 0 -429 0 0 0 -429Total Expenses 52 -1,482 -29,227 -38,122 -4,463 -73,242

Operating Result 0 -15,770 18,345 0 0 2,575

Balance Sheet

Current AssetsCash and Cash Equivalents 0 19,950 0 0 0 19,950Receivables 0 547 0 0 0 547Assets Held for Sale 0 54,258 0 0 0 54,258Capital Works in Progress 0 0 -15,496 -97,929 0 -113,425Total Current Assets 0 74,755 -15,496 -97,929 0 -38,670Non Current AssetsProperty, Plant and Equipment 0 167,554 -345,472 0 0 -177,918Total Non-Current Assets 0 167,554 -345,472 0 0 -177,918Total Assets 0 242,309 -360,968 -97,929 0 -216,588

Current and Non-Current LiabilitiesEmployee Benefits 0 0 0 -1,514 0 -1,514Other Provisions 0 50,052 0 0 0 50,052Total Current and Non-Current Liabilities 0 50,052 0 -1,514 0 48,538

Net Assets 0 192,257 -360,968 -96,415 0 -265,126


Significant variations are as follows:

Operating Statement (Table 64)

controlled recurrent payments: the decrease of $64.976 million in the 2016-17 estimated outcome from the original budget is mainly due to the effect of the rollover of funding from 2016-17 to future years ($51.618 million) and the impact of the AAs as outlined in Table 68 above ($25.221 million), partially offset by variations to Commonwealth Funding ($5.968 million) and the rollover of funding from 2015-16 to 2016-17 ($4.856 million).

land revenue: the decrease of $229.081 million in the 201617 estimated outcome from the original budget is mainly due to the reclassification of Land Revenue and Cost of Goods Sold to Gains on Loose-Fill Asbestos Insulation Eradication Scheme Land Sales to display the net gains from land sales, consistent with end of financial year reporting requirements.

resources received free of charge: the increase of $1.312 million in the 2016-17 estimated outcome from the original budget is due to a general increase in the use of the Government Solicitor’s Office (GSO) for a range of purposes during the year.

other revenue: the decrease of $7.487 million in the 201617 estimated outcome from the original budget is due to a budgeted one-off receipt to supplement whole of government workers’compensation premium costs not being required.

gains on loose-fill asbestos insulation eradication scheme land sales:

- the increase of $5.281 million in the 201617 estimated outcome from the original budget is mainly due to the reclassification of Land Revenue and Cost of Goods Sold to Gains on Loose-Fill Asbestos Insulation Eradication Scheme Land Sales to display the net gains from land sales, consistent with end of financial year reporting requirements; and

- the decrease of $5.281 million in the 201718 Budget from the 201617 estimated outcome is due to the transfer of the Asbestos Response Taskforce to EPSDD from 1 November 2016.

supplies and services: the decrease of $64.304 million in the 201617 estimated outcome from the original budget is mainly due to the effect of the funding reprofiling between 2015-16, 2016-17 and future years ($43.979 million), intra-directorate eliminations and the impact of the AAs as outlined in Table 68 above ($8.775 million).

depreciation and amortisation: the decrease of $13.399 million in the 201718 Budget from the 201617 estimated outcome is mainly due to the impact of the AAs as outlined in Table 69 above ($18.309 million), partially offset by increases associated with the forecast completion of capital works projects.


cost of goods sold: the decrease of $187.991 million in the 201617 estimated outcome from the original budget is mainly due to the reclassification of Land Revenue and Cost of Goods Sold to Gains on Loose-Fill Asbestos Insulation Eradication Scheme Land Sales to display the net gains from land sales, consistent with end of financial year reporting requirements.

other expenses:

- the decrease of $6.784 million in the 201617 Budget from the original budget is mainly due to the budgeted one-off supplementation for whole of government workers’ compensation premium costs being lower than forecast; and

- the decrease of $9.245 million in the 201718 Budget from the 201617 estimated outcome is mainly due to the removal of the remaining budgeted one-off supplementation for whole of government workers’ compensation premium cost, partially offset by the introduction of an ACT Public Sector Workers Comp Insurance Scheme ($9.184 million) and the transfer of buildings to the Suburban Land Agency (SLA) associated with the Centralisation of Property Custodianship initiative ($2.841 million).

transfer expenses:

- the decrease of $31.730 million in the 201617 estimated outcome from the original budget is mainly due to the impact of the AAs as outlined in Table 68 above; and

- the decrease of $3.927 million in the 201718 Budget from the 201617 estimated outcome is due to the transfer of the Asbestos Response Taskforce to EPSDD from 1 November 2016.

Balance Sheet (Table 65)

cash and cash equivalents: the decrease of $43.493 million in the 201617 estimated outcome from the original budget is mainly due to a downwards revision to reflect the 2015-16 audited outcome ($21.530 million) and the impact of the AAs as outlined in Table 68 above ($19.950 million).

property, plant and equipment:

- the decrease of $448.527 million in the 201617 estimated outcome from the original budget is mainly due to the impact of the AAs as outlined in Table 68 above ($262.434 million), a delay in the completion of capital works projects ($133.222 million) and a revision to the timing of property transfers to SLA relating to the Asset Recycling Initiative ($10.151 million); and

- the decrease of $290.544 million in the 201718 Budget from the 201617 estimated outcome is mainly due to the forecast sale of asbestos remediated land during 2017-18 and the impact of the AAs as outlined in Table 69 above ($177.918 million), partially offset by new initiatives ($13.395 million).

investment properties: the increase of $2.810 million in the 201617 estimated outcome from the original budget reflects the acquisition of land (block 799, Gungahlin).


intangible assets: the increase of $31.428 million in the 201718 Budget from the 2016-17 estimated outcome is mainly due to the forecast completion and Revenue Collection Transformation Project.

capital works in progress:

- the decrease of $132.022 million in the 201617 estimated outcome from the original budget is mainly due an acceleration of the Public Housing Renewal program during 2015-16 through the purchase of established properties for transfer to Housing Act rather than building them, the rollover of capital works initiatives from 2016-17 to future years ($90.356 million) and savings in the capital works program ($20.154 million), partially offset by the rollover of capital works initiatives from 2015-16 to 2016-17 ($13.067 million) and a deferral of the timing of the transfer of Public Housing Renewal properties to Housing ACT ($46 million); and

- the decrease of $112.262 million in the 201718 Budget from the 201617 estimated outcome is mainly due to the impact of the AAs as outlined in Table 69 above ($113.425 million) and the profile of previously funded capital works initiatives ($70.362 million), partially offset by new initiatives ($8.982 million) and the rollover of capital works initiatives from 2016-17 to future years ($67.107 million).

current and non current other assets:

- the increase of $11.686 million in the 201617 estimated outcome from the original budget is mainly due to the entry into lease incentive arrangements for several office buildings; and

- the decrease of $3.545 million in the 201718 Budget from the 201617 estimated outcome is mainly due to the use of the rent free period associated with lease incentive arrangements on several office buildings.

current and non current other provisions: the decrease of $292.980 million in the 2016-17 estimated outcome from the original budget is mainly due to a decrease in the value of provisions associated with the loose-fill asbestos eradication program following completion of the 2015-16 audit, largely reflecting the timing of settlements associated with property purchases and their remediation and the impact of the AAs as outlined in Table 68 above ($160.175 million).

current and non current other liabilities: the increase of $11.686 million in the 2016-17 estimated outcome from the original budget is mainly due to entering into lease incentive arrangements for several office buildings.

Statement of Changes in Equity and Cash Flow Statement (Table 66 and Table 67)

Variations in these Statements are explained in the notes above.


Financial Statements – Territorial (GGS)

Table 70: Chief Minister, Treasury and Economic Development Directorate: Statement of Income and Expenses on behalf of the Territory

201617 Budget

$'000

201617 Estimated Outcome

$'000

201718 Budget

$'000

Var%

201819 Estimate

$'000

201920 Estimate

$'000

202021 Estimate

$'000

Revenue1

73,265 Payment for Expenses on Behalf of the Territory

74,849 63,856 -15 65,199 67,172 69,092

1,838,375 Taxes, Fees and Fines 1,905,647 1,961,035 3 2,073,566 2,173,011 2,289,76977,506 Land Revenue 76,040 87,416 15 101,662 118,763 138,80519,076 User Charges 21,225 22,484 6 23,121 23,193 24,005

1,746,421 Commonwealth Grants 1,709,797 1,812,450 6 1,843,971 1,871,358 1,948,535294,487 Dividend Revenue 322,232 319,505 -1 269,103 267,722 279,466

1,693 Other Revenue 1,693 1,675 -1 3,583 1,670 1,728

4,050,823 Total Revenue 4,111,483 4,268,421 4 4,380,205 4,522,889 4,751,400

Expenses 11,803 Supplies and Services 12,479 10,972 -12 10,443 10,440 8,41039,206 Grants and Purchased

Services50,416 43,225 -14 43,960 45,386 46,575

66,989 Cost of Goods Sold 67,672 80,295 19 95,272 113,042 134,12737,204 Other Expenses 26,922 23,796 -12 24,432 24,948 25,667

3,895,621 Transfer Expenses 3,953,994 4,110,133 4 4,206,098 4,329,073 4,536,621

4,050,823 Total Expenses 4,111,483 4,268,421 4 4,380,205 4,522,889 4,751,400

0 Operating Result 0 0 - 0 0 0

Other Comprehensive IncomeItems that will not be Reclassified Subsequently to Profit or Loss

19,697 Increase/(Decrease) in Asset Revaluation Surplus

19,697 19,697 - 19,697 19,697 19,697

19,697 Total Other Comprehensive Income

19,697 19,697 - 19,697 19,697 19,697

19,697 Total Comprehensive Income

19,697 19,697 - 19,697 19,697 19,697

Note(s):1. 2017-18 Budget Paper 3: Budget Outlook provides detailed information on budgeted General Government Sector

(GGS) revenue, including taxes, fees and fines, Commonwealth Government grants and dividend revenue. Most of the GGS revenue relating to these items is collected through CMTEDD’s Territorial accounts.


Table 71: Chief Minister, Treasury and Economic Development Directorate: Statement of Assets and Liabilities on behalf of the Territory

Budgetat

30/6/17 $'000

Est.Outcomeas at

30/6/17$'000

Budgetat

30/6/18 $'000

Var%

Estimateat

30/6/19 $'000

Estimateat

30/6/20 $'000

Estimateat

30/6/21 $'000

Current Assets9,734 Cash and Cash Equivalents 4,581 4,581 - 4,581 4,581 4,581

450,145 Receivables 409,167 468,495 14 396,467 522,722 467,183657 Inventories 438 438 - 438 438 438357 Other Assets 400 400 - 400 400 400

460,893 Total Current Assets 414,586 473,914 14 401,886 528,141 472,602

Non Current Assets1,683 Investments 1,182 1,182 - 1,182 1,182 1,182

394,330 Property, Plant and Equipment

368,190 353,362 -4 325,557 283,982 251,322

396,013 Total Non Current Assets 369,372 354,544 -4 326,739 285,164 252,504

856,906 TOTAL ASSETS 783,958 828,458 6 728,625 813,305 725,106

Current Liabilities457,897 Payables 414,610 471,708 14 397,450 521,475 463,706

866 Other Provisions 866 866 - 866 866 8661,440 Other Liabilities 1,611 1,611 - 1,611 1,611 1,611



396,703 NET ASSETS 366,871 354,273 -3 328,698 289,353 258,923


345,999 Accumulated Funds 323,675 291,380 -10 246,108 187,066 136,93950,704 Asset Revaluation Surplus 43,196 62,893 46 82,590 102,287 121,984

396,703 TOTAL FUNDS EMPLOYED 366,871 354,273 -3 328,698 289,353 258,923


Table 72: Chief Minister, Treasury and Economic Development Directorate: Statement of Changes in Equity on behalf of the Territory

Budgetat

30/6/17 $'000

Est.Outcomeas at

30/6/17$'000

Budgetat

30/6/18 $'000

Var%

Estimateat

30/6/19 $'000

Estimateat

30/6/20 $'000

Estimateat

30/6/21 $'000

Opening Equity363,988 Opening Accumulated Funds 370,347 323,675 -13 291,380 246,108 187,066


23,499 43,196 84 62,893 82,590 102,287

394,995 Balance at the Start of the Reporting Period

393,846 366,871 -7 354,273 328,698 289,353

Comprehensive Income19,697 Inc/Dec in Asset Revaluation

Reserve Surpluses19,697 19,697 - 19,697 19,697 19,697

19,697 Total Comprehensive Income 19,697 19,697 - 19,697 19,697 19,697


Transactions Involving Owners Affecting Accumulated Funds49,000 Capital Injections 21,000 48,000 129 50,000 54,000 84,000

-66,989 Capital Distributions to Government

-67,672 -80,295 -19 -95,272 -113,042 -134,127


-46,672 -32,295 31 -45,272 -59,042 -50,127

Closing Equity345,999 Closing Accumulated Funds 323,675 291,380 -10 246,108 187,066 136,939


43,196 62,893 46 82,590 102,287 121,984

396,703 Balance at the end of the Reporting Period

366,871 354,273 -3 328,698 289,353 258,923


Table 73: Chief Minister, Treasury and Economic Development Directorate: Cash Flow Statement on behalf of the Territory

2016-17 Budget

$'000


$'000

2017-18 Budget

$'000

Var %

2018-19 Estimate

$'000

2019-20 Estimate

$'000

2020-21 Estimate

$'000


27,277 Payment for Expenses on Behalf of the Territory

40,643 29,516 -27 30,113 30,789 31,661

45,988 Payment for Community Service Obligations

34,206 34,340 .. 35,086 36,383 37,431

1,700,897 Taxes, Fees and Fines 1,745,965 1,827,391 5 1,964,150 2,063,919 2,177,69319,076 User Charges 21,225 22,484 6 23,071 23,143 23,955

1,750,214 Commonwealth Grants 1,713,570 1,844,285 8 1,843,517 1,870,901 1,950,125257,540 Dividends 286,188 239,083 -16 340,233 166,131 359,669145,455 Other 167,802 186,174 11 112,833 128,828 131,044


Payments9,831 Supplies and Services 11,557 9,936 -14 9,952 9,983 10,000


50,416 43,225 -14 43,960 45,386 46,575

3,864,753 Transfer of Territory Receipts to the ACT Government

3,924,029 4,108,476 5 4,272,705 4,241,638 4,630,980

36,470 Other 26,188 23,024 -12 23,616 24,132 24,8463,950,260 Operating Payments 4,012,190 4,184,661 4 4,350,233 4,321,139 4,712,401


-2,591 -1,388 46 -1,230 -1,045 -823


70,802 Proceeds from Sale of Property, Plant and Equipment

69,193 81,683 18 96,502 114,087 134,950

70,802 Investing Receipts 69,193 81,683 18 96,502 114,087 134,950


and Equipment0 0 - 0 0 0

0 Purchase of Land and Intangibles

21,000 48,000 129 50,000 54,000 84,000

49,000 Investing Payments 21,000 48,000 129 50,000 54,000 84,000

21,802 NET CASH INFLOW/(OUTFLOW) FROM INVESTING ACTIVITIES

48,193 33,683 -30 46,502 60,087 50,950


2016-17 Budget

$'000


$'000

2017-18 Budget

$'000

Var %

2018-19 Estimate

$'000

2019-20 Estimate

$'000

2020-21 Estimate

$'000


49,000 Capital Injections 21,000 48,000 129 50,000 54,000 84,00049,000 Financing Receipts 21,000 48,000 129 50,000 54,000 84,000

Payments66,989 Distributions to Government 67,672 80,295 19 95,272 113,042 134,12766,989 Financing Payments 67,672 80,295 19 95,272 113,042 134,127

-17,989 NET CASH INFLOW/(OUTFLOW) FROM FINANCING ACTIVITIES

-46,672 -32,295 31 -45,272 -59,042 -50,127

0 NET INCREASE / (DECREASE) IN CASH AND CASH EQUIVALENTS

-1,070 0 100 0 0 0


5,651 4,581 -19 4,581 4,581 4,581


4,581 4,581 - 4,581 4,581 4,581


Notes to the Territorial Budget Statements

The CMTEDD Territorial budget statements include grants received from the Commonwealth under the framework for Federal Financial Relations implemented by COAG on 1 January 2009. The principal impact of the framework is the amalgamation of many grant payments previously made to individual ACT Government Agencies by Commonwealth Treasury to CMTEDD.

The CMTEDD Territorial budget statements also include:

dividend revenue collected from other ACT Government Agencies;

a regulatory levy on workers’ compensation insurers;

taxes fees and fines collected through the Revenue Office;

transactions relating to the Land Rent Scheme;

payments for First Home Owner’s Grants;

payments for a variety of concession schemes covering household utility expenses, transportation, spectacles and funeral expenses;

motor vehicle registrations;

driver and taxi licence fees;

traffic infringement and parking fees and fines;

water abstraction charges;

building levies; and

other regulatory service fees.

A detailed explanation of grants, dividends and taxes, fees and fines is provided in Budget Paper 3: Budget Outlook.

During 2016-17, Administrative Arrangements 2016 (No 4) (Notifiable Instrument NI2016-608) also came into effect, which transferred responsibility for the Racing and Gaming Policy function from CMTEDD to the Justice and Community Safety Directorate (JACSD) from 1 November 2016.


Statement of Income and Expenses on behalf of the Territory (Table 70)

payment for expenses on behalf of the Territory: the decrease of $10.993 million in the 201718 Budget from the 201617 estimated outcome is mainly due to the impact of rollovers from 201516 to 201617, and a reduction of grant payments to racing clubs resulting from the transfer of the Racing and Gaming function to JACSD from 1 November 2016.


land revenue: the increase of $11.376 million in the 201718 Budget from the 2016-17 estimated outcome is due to a forecast increase in the number of land rent block sales.

user charges: the increase of $2.149 million in the 201617 estimated outcome from the original budget is mainly due to the transfer of responsibility for the collection of Extension of Time to Build fees from the Controlled to the Territorial accounts.

supplies and services: the decrease of $1.507 million in the 201718 Budget from the 201617 estimated outcome is largely due to the removal of the impact of rollovers from 201516 to 201617 and a reduction in GST administration costs paid to the Australian Taxation Office, reflecting Australian Government budget forecasts.

grants and purchased services:

- the increase of $11.210 million in the 201617 estimated outcome from the original budget is mainly due to a reallocation of Community Service Obligation (CSO) payments1 from other expenses to grants and purchased services to better reflect the nature of those expenses, partially offset by a reduction in grant payments to racing clubs resulting from a part year impact of the transfer of the Racing and Gaming function to JACSD from 1 November 2016; and

- the decrease of $7.191 million in the 201718 Budget from the 201617 estimated outcome is mostly due to the removal of grant payments to racing clubs resulting from the transfer of the Racing and Gaming function to JACSD from 1 November 2016, and a reduction in forecast First Home Owners’ Grant (FHOG) payments during 2017-18.

cost of goods sold: the increase of $12.623 million in the 201718 Budget from the 2016-17 estimated outcome is due to a forecast increase in the number of land rent block sales.

other expenses:

- the decrease of $10.282 million in the 201617 estimated outcome from the original budget is mainly due to a reallocation of CSO payments from other expenses to grants and purchased services to better reflect the nature of those expenses, partially offset by a rollover of concessions expenses from 201516 to 201617; and

- the decrease of $3.126 million in the 201718 Budget from the 201617 estimated outcome is mostly due to the removal of the impact of rollovers from 201516 to 201617.

1 2017-18 Budget Paper 3: Budget Outlook provides an explanation of Community Service Obligations.


Statement of Assets and Liabilities on behalf of the Territory (Table 71)

cash and cash equivalents: the decrease of $5.153 million in the 201617 estimated outcome from the original budget is due to reducing budgeted cash to reflect the 2015-16 audited outcome (end of year CMTEDD Territorial cash balances usually reflect appropriation drawn down prior to the end of the financial year for payments that are required within the first few weeks of the new financial year).

receivables: the increase of $59.328 million in the 201718 Budget from the 2016-17 estimated outcome is due to the net change in the end of financial year accrual estimates for taxes, fees, fines and dividends.

payables: the increase of $57.098 million in the 201718 Budget from the 2016-17 estimated outcome is due to the net change in the end of financial year accrual estimates for taxes, fees, fines and dividends.

Statement of Changes in Equity and Cash Flow Statement on behalf of the Territory(Table 72 and Table 73)



Table 74: Output Class 1: Government Strategy Operating Statement

201617 Budget

$'000


$'000

201718 Budget

$'000

Var%

201819 Estimate

$'000

201920 Estimate

$'000

202021 Estimate

$'000

Income


Payments22,698 26,763 18 23,448 22,815 23,373

4,733 User Charges 3,568 3,831 7 3,637 3,611 3,778436 Resources Received Free of

Charge558 535 -4 534 533 547

27,528 Total Revenue 26,824 31,129 16 27,619 26,959 27,698

Gains1 Other Gains 1 1 - 1 1 1

1 Total Gains 1 1 - 1 1 1

27,529 Total Income 26,825 31,130 16 27,620 26,960 27,699


3,564 Superannuation Expenses 3,494 4,050 16 3,891 3,855 3,8679,211 Supplies and Services 7,565 7,651 1 6,184 6,832 6,8151,026 Depreciation and

Amortisation1,026 1,406 37 320 574 574

972 Grants and Purchased Services

1,945 3,140 61 2,170 1,310 1,150

43 Other Expenses 49 50 2 51 53 55

29,079 Total Ordinary Expenses 28,037 33,036 18 27,957 28,029 28,038

-1,550 Operating Result -1,212 -1,906 -57 -337 -1,069 -339


Table 75: Output Class 2: Access Canberra Operating Statement

201617 Budget

$'000


$'000

201718 Budget

$'000

Var%

201819 Estimate

$'000

201920 Estimate

$'000

202021 Estimate

$'000

Income


Payments74,571 76,772 3 75,771 76,485 77,516

0 Taxes, Fees and Fines 116 118 2 121 125 1299,725 User Charges 10,211 9,463 -7 9,477 9,429 9,581

809 Resources Received Free of Charge

504 609 21 602 666 632

2,182 Other Revenue 2,182 1,036 -53 1,063 1,010 1,069

87,462 Total Revenue 87,584 87,998 .. 87,034 87,715 88,927


12 Total Gains 12 12 - 12 12 12

87,474 Total Income 87,596 88,010 .. 87,046 87,727 88,939


8,619 Superannuation Expenses 8,305 8,469 2 8,449 8,457 8,47226,640 Supplies and Services 27,183 27,207 .. 26,610 27,218 27,868


2,864 3,177 11 3,823 3,823 3,823


1,165 1,016 -13 1,023 619 635

112 Other Expenses 112 100 -11 100 102 1021,105 Transfer Expenses 1,105 1,081 -2 1,094 1,110 1,108


-2,945 Operating Result -2,099 -3,286 -57 -3,936 -3,935 -3,954


Table 76: Output Class 3: Economic Development Operating Statement

201617 Budget

$'000


$'000

201718 Budget

$'000

Var%

201819 Estimate

$'000

201920 Estimate

$'000

202021 Estimate

$'000

Income


Payments129,608 112,449 -13 86,350 86,882 87,463

296 Taxes, Fees and Fines 296 0 -100 0 0 0107,711 User Charges 107,711 4,137 -96 7,344 5,302 5,285

26 Interest 100 50 -50 50 48 493 Resources Received Free of

Charge933 548 -41 542 537 623

997 Other Revenue 997 184 -82 184 184 182

279,966 Total Revenue 239,645 117,368 -51 94,470 92,953 93,602

Gains27 Other Gains 27 4 -85 4 4 10

27 Total Gains 27 4 -85 4 4 10

279,993 Total Income 239,672 117,372 -51 94,474 92,957 93,612

Expenses 40,265 Employee Expenses 39,054 15,259 -61 13,680 13,722 13,963

6,679 Superannuation Expenses 6,456 2,953 -54 2,800 2,671 2,655163,117 Supplies and Services 130,761 34,334 -74 32,417 27,419 28,208


41,327 2,003 -95 739 2,853 2,803


62,097 64,064 3 45,381 48,874 48,112

201 Borrowing Costs 65 0 -100 0 0 0606 Other Expenses 721 713 -1 738 748 752

316,339 Total Ordinary Expenses 280,481 119,326 -57 95,755 96,287 96,493



Table 77: Output Class 4: Financial and Economic Management Operating Statement

201617 Budget

$'000


$'000

201718 Budget

$'000

Var%

201819 Estimate

$'000

201920 Estimate

$'000

202021 Estimate

$'000

Income


Payments33,864 23,126 -32 19,611 18,956 18,799

1,572 Interest 1,226 1,204 -2 1,233 1,186 1,135719 Resources Received Free of

Charge179 174 -3 197 203 115

26 Other Revenue 26 27 4 28 28 29

30,618 Total Revenue 35,295 24,531 -30 21,069 20,373 20,078


1 Total Gains 1 1 - 1 1 1

30,619 Total Income 35,296 24,532 -30 21,070 20,374 20,079

Expenses 8,910 Employee Expenses 8,124 8,519 5 8,440 8,258 8,2071,771 Superannuation Expenses 1,661 1,809 9 1,801 1,760 1,7488,311 Supplies and Services 7,393 8,439 14 7,724 7,251 7,034

911 Depreciation and Amortisation

204 692 239 693 3,381 3,381


16,643 4,559 -73 1,871 1,918 1,956

1,572 Borrowing Costs 1,226 1,196 -2 1,221 1,174 1,1231 Other Expenses 55 55 - 58 59 60


-961 Operating Result -10 -737 # -738 -3,427 -3,430


Table 78: Output Class 5: Workforce Injury Management and Industrial Relations Policy Operating Statement

201617 Budget

$'000


$'000

201718 Budget

$'000

Var%

201819 Estimate

$'000

201920 Estimate

$'000

202021 Estimate

$'000


Payments23,298 17,711 -24 17,882 18,190 18,424

3,498 User Charges 3,498 3,585 2 3,675 3,767 3,8617,487 Other Revenue 0 0 - 0 0 0

34,476 Total Revenue 26,796 21,296 -21 21,557 21,957 22,285Expenses

8,807 Employee Expenses 8,720 9,012 3 9,256 9,507 9,226931 Superannuation Expenses 893 878 -2 869 856 857

1,832 Supplies and Services 1,653 2,304 39 2,164 2,186 2,200848 Depreciation and

Amortisation848 825 -3 825 96 96


270 276 2 282 289 289

22,636 Other Expenses 15,173 8,826 -42 8,986 9,119 9,751


-848 Operating Result -761 -825 -8 -825 -96 -134


Table 79: Output Class 6: Revenue Management Operating Statement

201617 Budget

$'000


$'000

201718 Budget

$'000

Var%

201819 Estimate

$'000

201920 Estimate

$'000

202021 Estimate

$'000


Payments15,619 15,502 -1 15,218 15,429 15,676

10 User Charges 955 968 1 981 994 1,00752 Interest 52 40 -23 32 32 32


1,290 1,149 -11 1,164 1,160 1,224

233 Other Revenue 233 1,373 489 1,352 1,372 1,396

16,724 Total Revenue 18,149 19,032 5 18,747 18,987 19,335

Expenses 8,710 Employee Expenses 8,503 10,221 20 10,352 10,476 10,6151,732 Superannuation Expenses 1,643 1,862 13 1,921 1,962 1,9636,399 Supplies and Services 7,854 7,050 -10 6,686 6,811 7,021


39 39 - 4,236 4,236 4,236


0 10 # 10 10 10

0 Other Expenses 69 73 6 75 78 80


-156 Operating Result 41 -223 -644 -4,533 -4,586 -4,590


Table 80: Output Class 7: Shared Services Operating Statement

201617 Budget

$'000


$'000

201718 Budget

$'000

Var%

201819 Estimate

$'000

201920 Estimate

$'000

202021 Estimate

$'000


Payments15,938 28,432 78 24,764 23,538 24,461

170,562 User Charges 174,371 178,734 3 183,205 187,784 192,480149 Interest 149 123 -17 126 129 132


474 474 - 474 474 531

1,925 Other Revenue 1,925 2,009 4 2,065 2,122 2,175

193,158 Total Revenue 192,857 209,772 9 210,634 214,047 219,779

Expenses 81,112 Employee Expenses 79,409 85,632 8 87,159 88,373 89,95413,197 Superannuation Expenses 12,740 11,695 -8 11,867 12,058 12,21184,961 Supplies and Services 82,787 90,067 9 88,189 88,416 91,09428,360 Depreciation and

Amortisation22,995 23,249 1 24,661 27,117 28,429

134 Other Expenses 134 131 -2 134 138 145

207,764 Total OrdinaryExpenses 198,065 210,774 6 212,010 216,102 221,833



Table 81: Output Class 8: Infrastructure Finance and Capital Works Operating Statement

201617 Budget

$'000


$'000

201718 Budget

$'000

Var%

201819 Estimate

$'000

201920 Estimate

$'000

202021 Estimate

$'000


Payments7,209 7,630 6 6,015 5,972 4,383

20,843 User Charges 21,088 18,116 -14 18,471 18,834 19,213324 Resources Received Free of

Charge386 377 -2 384 384 391

61 Other Revenue 61 62 2 63 63 65

29,094 Total Revenue 28,744 26,185 -9 24,933 25,253 24,052


2,473 Superannuation Expenses 2,288 1,820 -20 1,980 1,973 1,86411,129 Supplies and Services 10,381 9,074 -13 6,867 7,294 6,978


188 193 3 193 353 353


153 0 -100 0 0 0

29,394 Total OrdinaryExpenses 28,473 24,399 -14 23,159 23,694 22,470

-300 Operating Result 271 1,786 559 1,774 1,559 1,582


Table 82: Output Class 9: Property Services, Venues and Procurement Operating Statement

201617 Budget

$'000


$'000

201718 Budget

$'000

Var%

201819 Estimate

$'000

201920 Estimate

$'000

202021 Estimate

$'000

Income

Revenue0 Controlled Recurrent

Payments0 27,426 # 21,205 16,380 15,312

0 Taxes, Fees and Fines 0 309 # 321 321 3270 User Charges 0 106,108 # 108,648 110,417 112,6220 Interest 0 80 # 86 88 900 Resources Received Free of

Charge0 300 # 298 294 340

0 Other Revenue 0 1,068 # 403 403 412

0 Total Revenue 0 135,291 # 130,961 127,903 129,103

Gains0 Other Gains 27 # 29 29 24

0 Total Gains 27 # 29 29 24

0 Total Income 135,318 # 130,990 127,932 129,127

Expenses 0 Employee Expenses 0 21,963 # 21,219 21,109 21,3800 Superannuation Expenses 0 3,292 # 3,197 3,246 3,2820 Supplies and Services 0 106,615 # 100,928 97,572 89,5700 Depreciation and

Amortisation0 24,537 # 26,685 26,942 28,867


0 4,146 # 2,939 450 462

0 Borrowing Costs 0 132 # 206 204 2020 Other Expenses 0 2,861 # 4,833 7,056 7,509

0 Total OrdinaryExpenses 0 163,546 # 160,007 156,579 151,272

0 Operating Result 0 -28,228 # -29,017 -28,647 -22,145


Table 83: Output Class 10: Loose Fill Asbestos Insulation Eradication (Discontinued) Operating Statement

201617 Budget

$'000


$'000

201718 Budget

$'000

Var%

201819 Estimate

$'000

201920 Estimate

$'000

202021 Estimate

$'000

Income


Payments6,378 0 -100 0 0 0

229,081 Land Revenue 0 0 - 0 0 0

259,314 Total Revenue 6,378 0 -100 0 0 0

Gains2 Other Gains 5,281 0 -100 0 0 02 Total Gains 5,281 0 -100 0 0 0

259,316 Total Income 11,659 0 -100 0 0 0

Expenses 6,754 Employee Expenses 2,474 0 -100 0 0 0

910 Superannuation Expenses 344 0 -100 0 0 010,730 Supplies and Services 2,122 0 -100 0 0 0


29 0 -100 0 0 0


708 0 -100 0 0 0

187,991 Cost of Goods Sold 0 0 - 0 0 05,511 Other Expenses 5,741 0 -100 0 0 0

35,633 Transfer Expenses 3,903 0 -100 0 0 0

247,558 Total OrdinaryExpenses 15,321 0 -100 0 0 0

11,758 Operating Result -3,662 0 100 0 0 0


ACT COMPULSORY THIRD-PARTY INSURANCE REGULATOR – STATEMENT OF INTENT

The ACT Compulsory Third-Party Insurance Regulator is a Territory Authority established under the Road Transport (Third-Party Insurance) Act 2008 (CTP Act).

This Statement of Intent for 2017-18 has been prepared in accordance with Section 61 of the Financial Management Act 1996.

The responsible Minister, Andrew Barr MLA, was consulted during the preparation of the Statement of Intent.

The Statement of Intent, which focuses on the 2017-18 Budget year, has been developed in the context of a four year forward planning horizon to be incorporated, as far as practicable, into the ACT Compulsory Third-Party Insurance Regulator’s strategic and business planning processes.

The ACT Compulsory Third-Party Insurance Regulator’s 2017-18 Statement of Intent has been agreed between:

Karen Doran

ACT Compulsory Third-Party Insurance Regulator

Andrew Barr MLA

Treasurer

201718 Budget Statements 107 ACT Compulsory Third-Party Insurance Regulator

ACT COMPULSORY THIRD-PARTY INSURANCE REGULATOR

PurposeThe ACT Compulsory Third-Party Insurance Regulator (CTP regulator) functions are to be carried out in accordance with the objects of the CTP Act under Section 5A, which are to:

continue to improve the system of CTP insurance and the scheme of statutory insurance for uninsured and unidentified vehicles operating in the ACT;

promote competition in setting premiums for CTP insurance policies;

keep the costs of insurance at an affordable level;

provide for the licensing and supervision of insurers providing insurance under policies of CTP insurance;

encourage the timely resolution of personal injury claims resulting from motor accidents;

promote and encourage, as far as practicable, the rehabilitation of people who sustain personal injury because of motor accidents;

establish and keep a register of motor accident claims to help the administration of the statutory insurance scheme and the detection of fraud; and

promote measures directed at eliminating or reducing causes of motor accidents and mitigating their results.

Nature and scope of activities

General activities

It is the responsibility of the CTP regulator to oversee and monitor the regulation, procedures, structure and transparency of the CTP scheme and ensure compliance with the obligations and procedures set out in the CTP Act.

The detail of the CTP regulator’s functions are set out in Section 14A of the CTP Act.

CTP Insurer Regulation and Viability of Scheme

Key responsibilities of the CTP regulator include:

licensing CTP insurers under Chapter 5 of the CTP Act;

ensuring CTP insurers comply with their obligations under the CTP Act; and

approving or rejecting CTP premium filings of CTP insurers under part 2.6 of the CTP Act.

The CTP regulator may issue guidelines in support of its regulatory activities.


CTP premium filings are required to be submitted at least annually unless a longer period is permitted by the CTP regulator. A premium filing is a document provided by a CTP insurer to the CTP regulator containing a range of information in support of its annual CTP premiums. CTP premium filings lodged with the CTP regulator are reviewed by the scheme’s actuary in accordance with the CTP Act and Premium Guidelines to ensure that the premium fully funds the insurer’s present and likely future liability and is not excessive.

The ACT CTP premium market experienced ongoing competition during 2016-17. A total of three filings were received and approved in 2016-17, reflecting the agreement of the CTP regulator to accept Suncorp’s request to extend the current premiums for AAMI and APIA from 31 March 2017 to 30 September 2017.

The CTP regulator publishes a list of the applicable CTP premiums for all vehicle classes on the CTP website – see http://apps.treasury.act.gov.au/compulsorytpi/premiums.

An efficient, effective and affordable CTP Scheme

An efficient, effective and affordable CTP scheme, that focuses on serving motorists generally, and those individuals involved in motor accident more specifically, is considered to:

facilitate the early resolution of claims;

effectively rehabilitate claimants;

ensure claims costs are reasonable and fair;

compensate claimants appropriately; and

provide affordable CTP premiums.

Prior to July 2013, NRMA was the sole CTP insurer for the ACT CTP insurance scheme. The introduction of the Suncorp brands (GIO, AAMI and APIA) to the ACT CTP insurance market on 15 July 2013 successfully established competition with a choice of providers and insurance products for motorists.

NRMA and GIO (Suncorp’s lowest cost CTP provider), continued to reduce their premiums during 2016-17 with small reductions in CTP premiums continuing to lead to changes in market share. This is consistent with the review of the operation of the CTP Act by the scheme actuary, presented to the Legislative Assembly on 5 April 2016, which found that: “The ACT CTP market has exhibited considerable price sensitivity.”

The ability of CTP providers to introduce further premium reductions may become more constrained during 2017-18 given the extent of the premium reductions already achieved since the introduction of competition to the ACT CTP market and the requirement that premiums must fully fund the current and future liabilities of the scheme.

The CTP regulator monitors the efficiency and effectiveness of the CTP scheme’s performance and developments in other markets. The regulator provides advice to the Government on potential improvements to the scheme relative to the objectives of the CTP Act.


http://apps.treasury.act.gov.au/compulsorytpi/premiums

The CTP regulator intends to again meet regularly with the Insurance Council of Australia, the CTP insurers and the ACT Nominal Defendant to ensure the ACT scheme is:

contemporary, meeting the needs of users, such as, for example, capturing the ongoing transformation of the on-demand transport service industry which has seen strong demand for ridesharing and peer-to-peer car sharing; and

efficient, identifying areas that can be revised to refine and improve the operation of the CTP scheme, such as with the proposed implementation of a streamlined premium filing process.

In addition, the CTP regulator receives feedback from the community regarding the CTP scheme through Access Canberra, direct enquiries (both oral and written correspondence) and through the feedback link on the CTP website at http://apps.treasury.act.gov.au/compulsorytpi/feedback.

The CTP regulator also participates in the inter-directorate ACT Road Safety Executive Group that allows it to monitor and comment on aspects of road safety policy. Of particular importance is the Road Safety Awarenesss Program which is comprised of the key road safety issues identified in the ACT Road Safety Strategy 2011-20, which are conveyed to motorists and vulnerable road users (motorcyclists, cyclists and pedestrians) through various forms of media. This provides the CTP regulator with the opportunity to contribute towards the funding of road safety initiatives to promote public awareness of the causes of motor accidents, and ways of reducing and mitigating the impact of motor accidents. A reduction in accidents assists in lowering CTP premiums.

Maintaining claims statistics for the CTP scheme

The ACT’s Personal Injury Register (PIR) system is an electronic register of all claims and payments relating to motor accidents involving personal injury in the ACT. The data are collected from CTP insurers and the Nominal Defendant at regular intervals.

During February 2016, the Queensland Motor Accident Insurance Commission ceased the arrangement to maintain and host the PIR database for the CTP regulator. As part of a staggered approach to implementing a PIR system that meets the needs of the CTP regulator, and more widely its stakeholders, Stage 1 of the project involved Shared Services ICT installing the PIR onto the Government’s ICT platform; addressing a number of immediate constraints to ensure the operational integrity of the PIR; and documenting the existing coding base to facilitate the proficient future ICT support of the PIR system. Stage 1 was completed in early 2017.

In 2017-18, the CTP regulator intends to commence Stage 2 of the PIR project to enhance the statistical analysis and reporting capabilities of the PIR.

Risks

Financial risks include adequacy of funding for the CTP regulator’s activities. A nominal levy of $1.00 is collected from every registration to fund and support the continued effective functioning of the CTP regulator. The CTP regulator’s revenues are thus dependent upon the number and frequency of registrations and renewals.


http://apps.treasury.act.gov.au/compulsorytpi/feedback

The CTP regulator has developed and implemented a risk management plan to identify and address risks and continues to review and update this plan as part of its ongoing business processes. The plan covers operating and reputational risks in addition to the financial risks.

2017-18 priorities and next three financial yearsPriorities in 2017-18 and over the next three financial years relate to the objectives of the CTP Act and include:

reviewing the regulatory requirements and appropriate legislative arrangements for the on-demand transport industry, including setting up a new personal share vehicle (PSV) CTP premium class; finalising associated PSV legislative requirements; and requesting that all CTP insurers file a PSV premium;

implementing legislative amendments to CTP legislation to extend the scheme coverage to include any personal injuries arising from a traffic accident involving a Light Rail Vehicle (LRV), and requesting that all CTP insurers set premiums for the new LRV class;

implementing a streamlined CTP premium filing process for specified (lower risk) filings to enhance the efficiency of the process for all impacted parties, while also encouraging more affordable premiums through ongoing competition;

continuing to monitor the scheme’s performance and identifying other improvements to the scheme and its processes, as necessary;

commencing an upgrade of the scheme statistics and trends analysis reporting capabilities of the PIR;

encouraging continued competition within the ACT CTP scheme;

contributing to targeted road safety initiatives that assist in reducing motor accidents and personal injuries, and mitigating their impact; and

working with other CTP regulators on changes required to CTP legislation to support the introduction of autonomous vehicles.

Estimated employment levelIn accordance with Section 14 of the CTP Act, the Minister, Andrew Barr MLA, has appointed the CTP regulator as the Executive Director of the Economic and Financial Group, Chief Minister, Treasury and Economic Development Directorate (CMTEDD) for a period of 5 years effective 10 June 2015. Roles and responsibilities have been delegated by the CTP regulator to officers of CMTEDD. The CTP regulator does not employ any staff.

The Financial Framework Management and Insurance (FFMI) Branch of the Economic and Financial Group provides a supporting role to the CTP regulator by providing a number of staff to carry out the CTP regulator’s functions. The CTP regulator reimburses the FFMI Branch for the salary and superannuation expenses associated with the FTE staff allocated to carrying out the CTP regulator’s functions.


Key performance indicators for 2017-18 to 2020-21

Table 1: Key performance indicators

2017-18Targets

2018-19Targets

2019-20Targets

2020-21Targets

a. CTP Premiums are approved in accordance with the Road Transport (Third-Party Insurance) Act 2008.

Review annual CTP premium filings




b. The Scheme is fully funded.

Actuarial review of premium filing applications by 30/06/2018




c. Make guidelines under the Act.

Monitor and revise premium guidelines and early payment guidelines by 30/06/2018 as necessary




d. To continue to refine the system of CTP insurance for vehicles in the ACT in conjunction with insurers.

Participation at Industry Council of Australia meetings




e. Promote public awareness of the causes of motor accidents through funding measurers directed at reducing causes of motor vehicle accidents.

Contribute to road safety strategies consistent with the CTP regulator’s function to promote public awareness of the causes of motor accidents




f. Complaints handling within 10 working days of receipt of the complaint.1

85% compliance 85% compliance 85% compliance

85% compliance

Note(s):1. Responses to complaints directly to the CTP regulator within 10 working days of receipt of the complaint apply in

cases where the CTP regulator does not need to liaise with another area of government or external entity. Complaints do not include responses received as part of a consultation process. Also refers to written correspondence only, not phone calls.


Assessment of performance against 2016-17 objectivesThe CTP regulator’s performance against its 2016-17 objectives and targets included in its 2016-17 Statement of Intent shows that the CTP regulator has met its targets. Further non-financial and performance outcomes are detailed below.

Review annual CTP premium filings – Premium filings were received from NRMA in July 2016 and from GIO in November 2016. An additional premium filing was also received from NRMA in April 2017. Premium filings were due from AAMI and APIA in April 2017, however, Suncorp requested an extention for these filings until 30 September 2017, which was granted by the CTP regulator. A high level review of the current premiums for AAMI and APIA was undertaken to ensure that the current premiums were still valid for the extension period. All of the premium filings (and granted extentions) were assessed and approved in accordance with the Act.

Actuarial review of premium filing applications by 30 June 2017 – An actuarial assessment was conducted in respect of each premium filing to ensure each met the fully funded test, that is, the premium met the present and likely future liabilities of the insurer under the CTP insurance scheme.

Monitor and revise existing guidelines as necessary – The guidelines under the Act were discussed as a standing item at the 2016-17 Industry Council of Australia (ICA) meetings, as well as out-of-session with insurers. A range of matters have been discussed throughout 2016-17 that will be incorporated into guidelines amendments in 2017-18 once they have been finalised. The Early Payment Guidelines were revised to provide guidance on the submission of the early payment claim form following amendments to the claims forms, and became effective 18 November 2016.

Participation at Industry Council of Australia meetings – The CTP regulator and insurers met twice during 2016-17 at meetings facilitated by the ICA (out-of-session correspondence was also conducted with insurers on important issues). The meetings and emails included discussion of matters relating to improving the operation of the CTP scheme, namely:

- reviewing the circumstances and approach to personal share vehicles (peer-to-peer car sharing);

- reviewing the treatment of light rail vehicles;

- streamlining of the premium filing process to improve efficiency;

- discussing the results of an online CTP insurance quiz undertaken in 2016 aimed at increasing ACT motorists’ awareness and understanding of the CTP scheme;

- developing Sharing Guidelines for the Industry Deed;

- revising claims forms; and

- finalising implementation of the Personal Injury Register.


Contributing to road safety strategies consistent with the CTP regulator’s function to promote public awareness of the causes of motor accidents – The CTP regulator is contributing $70,000 in 2016-17 to various road safety strategies aimed at mitigating third-party motor vehicle injuries. This comprises:

- $50,000 for a tailgating campaign; and

- $20,000 for a vehicle safety campaign.

Complaints handling within 10 working days – For the period July 2016 – April 2017, there has been 100% compliance with this performance indicator, in cases where no further information was required from another Directorate.

Monitoring and reportingThe CTP regulator shall satisfy the requirements of the Chief Minister’s Annual Reports Directions.

The CTP regulator’s Annual Report will, amongst other things, report against the requirements of this Statement of Intent.

The Financial Management Act 1996 authorises the Treasurer to obtain financial and other statements from the CTP regulator for a stated period including annual, quarterly and monthly reporting.

Monthly reporting

The CTP regulator prepares monthly financial reports for internal scrutiny and management.

These reports include tables and variance analysis for:

Operating Statement;

Balance Sheet; and

Cash Flow Statement.

Annual reporting

As part of preparations for end of year reporting the CTP regulator will produce:

certified financial statements;

management discussion and analysis;

a full and accurate set of audited financial records for the preceding financial year in the form requested; and

consolidation packs relating to the annual financial statements, draft and final.


Financial ArrangementsThe CTP regulator is a self-funded statutory authority, in normal circumstances, requiring no supplementary funding from the Government.

The CTP regulator charges a levy of $1.00 per registration or registration renewal. The levy covers the costs of the operations of the CTP regulator, including costs associated with necessary systems and actuarial advice.

Financial StatementsBudgeted financial statements for the 2017-18 Budget year, as well as forward estimates for the three financial years appear below. These general purpose financial statements have been prepared in accordance with the ACT’s Model Financial Statements and include:

Operating Statement; Balance Sheet; Statement of Changes in Equity; and Cash Flow Statement.


Table 2: ACT Compulsory Third-Party Insurance Regulator: Operating Statement

2016-17 Budget

$'000


$'000

2017-18 Budget

$'000

Var%

2018-19 Estimate

$'000

2019-20 Estimate

$'000

2020-21 Estimate

$'000

Income

Revenue488 Taxes, Fees and Fines 506 514 2 534 556 578

18 Interest 22 22 - 23 23 24

506 Total Revenue 528 536 2 557 579 602

Expenses 420 Supplies and Services 318 456 43 458 469 482


31 62 100 82 92 102

39 Other Expenses 70 18 -74 17 18 18

506 Total Expenses 419 536 28 557 579 602

0 Operating Result 109 0 -100 0 0 0

0 Total Comprehensive Income

109 0 -100 0 0 0


Table 3: ACT Compulsory Third-Party Insurance Regulator: Balance Sheet

Budgetat

30/6/17 $'000

Est.Outcomeas at

30/6/17 $'000

Budgetat

30/6/18 $'000

Var%

Estimateat

30/6/19 $'000

Estimateat

30/6/20 $'000

Estimateat

30/6/21 $'000

Current Assets331 Cash and Cash Equivalents 393 355 -10 387 429 481

41 Receivables 75 65 -13 65 66 66

372 Total Current Assets 468 420 -10 452 495 547

Non Current Assets237 Intangible Assets 281 318 13 286 243 191

237 Total Non Current Assets 281 318 13 286 243 191

609 TOTAL ASSETS 749 738 -1 738 738 738

Current Liabilities20 Payables 31 20 -35 20 20 20

20 Total Current Liabilities 31 20 -35 20 20 20

20 TOTAL LIABILITIES 31 20 -35 20 20 20

589 NET ASSETS 718 718 - 718 718 718

REPRESENTED BY FUNDS EMPLOYED589 Accumulated Funds 718 718 - 718 718 718

589 TOTAL FUNDS EMPLOYED 718 718 - 718 718 718


Table 4: ACT Compulsory Third-Party Insurance Regulator: Statement of Changes in Equity

Budgetat

30/6/17 $'000

Est.Outcomeas at

30/6/17 $'000

Budgetat

30/6/18 $'000

Var%

Estimateat

30/6/19 $'000

Estimateat

30/6/20 $'000

Estimateat

30/6/21 $'000

Opening Equity589 Opening Accumulated Funds 609 718 18 718 718 718

589 Balance at the Start of the Reporting Period

609 718 18 718 718 718

Comprehensive Income0 Operating Result - Including

Economic Flows109 0 -100 0 0 0


109 0 -100 0 0 0


Closing Equity589 Closing Accumulated Funds 718 718 - 718 718 718

589 Balance at the end of the Reporting Period

718 718 - 718 718 718


Table 5: ACT Compulsory Third-Party Insurance Regulator: Cash Flow Statement

2016-17 Budget

$'000


$'000

2017-18 Budget

$'000

Var %

2018-19 Estimate

$'000

2019-20 Estimate

$'000

2020-21 Estimate

$'000


488 Taxes, Fees and Fines 507 514 1 534 556 57818 Interest Received 22 22 - 23 23 24

506 Operating Receipts 529 536 1 557 579 602

Payments420 Supplies and Services 318 456 43 458 469 482

39 Other 70 18 -74 17 18 18459 Operating Payments 388 474 22 475 487 500

47 NET CASH INFLOW/(OUTFLOW) FROM OPERATING ACTIVITIES

141 62 -56 82 92 102

CASH FLOWS FROM INVESTING ACTIVITIES

Payments107 Purchase of Land and

Intangibles231 100 -57 50 50 50

107 Investing Payments 231 100 -57 50 50 50

-107 NET CASH INFLOW/(OUTFLOW) FROM INVESTING ACTIVITIES

-231 -100 57 -50 -50 -50

-60 NET INCREASE / (DECREASE) IN CASH AND CASH EQUIVALENTS

-90 -38 58 32 42 52

391 CASH AT THE BEGINNING OF REPORTING PERIOD

483 393 -19 355 387 429

331 CASH AT THE END OF REPORTING PERIOD

393 355 -10 387 429 481




Operating Statement

supplies and services:

- the decrease of $0.102 million in the 2016-17 estimated outcome for supplies and services from the original budget is mainly due to lower required actuarial services, as well as lower than anticipated ICT related support expenses due to the delay in the finalisation of Stage 1 of the Personal Injury register ICT project; and

- the increase of $0.138 million in the 2017-18 Budget from the 2016-17 estimated outcome is due to an expected increase in actuarial and Personal Injury Register support and maintenance services.

Balance Sheet and Statement of Changes in Equity

There are no significant variations to the Balance Sheet or Statement of Changes in Equity.

Cash Flow Statement

intangible payments: the increase of $0.124 million in the 2016-17 estimated outcome from the original budget is mainly due to unforseen costs associated with Stage 1 of the Personal Injury Register ICT project relating to the software coding.


ACT GAMBLING AND RACING COMMISSION – STATEMENT OF INTENT

The ACT Gambling and Racing Commission is a Territory Authority established under the Gambling and Racing Control Act 1999.


The responsible Minister, Gordon Ramsay MLA, was consulted during the preparation of the Statement of Intent.

The Statement of Intent, which focuses on the 2017-18 Budget year, has been developed in the context of a four year forward planning horizon to be incorporated, as far as practicable, into the ACT Gambling and Racing Commission strategic and business planning processes.

The ACT Gambling and Racing Commission 2017-18 Statement of Intent has been agreed between:

201718 Budget Statements 122 ACT Gambling and Racing Commission

ACT GAMBLING AND RACING COMMISSION

As a result of the 2015 amendments to the Financial Management Act 1996 (FMA), the budget statement for ACT Gambling and Racing Commission (the Commission) is its Statement of Intent.

The Gambling and Racing Commission BoardThe Commission is established under section 5 of the ACT Gambling and Racing Control Act 1999 (the Control Act) with the governing Board being established under Section 11 of the Control Act. The Commission’s members are appointed in accordance with Sections 11 and 12 of the Control Act and the CEO is appointed in accordance with section 80 of the FMA.

Under Section 56 of the FMA the Board is responsible, under the Minister, for the efficient and effective financial management of the authority. Section 77 of the FMA provides that a governing board has the following functions.

Setting the authority’s policies and strategies.

Governing the authority consistently with the authority’s establishing Act and other relevant legislation.

Ensuring, as far as practicable, that the authority operates in a proper, effective and efficient way.

Ensuring, as far as practicable, that the authority complies with applicable governmental policies.

The Commission’s Board consists of four non-executive members made up of the Chairperson, Deputy Chairperson and two ordinary members. The Commission’s Chief Executive Officer is also a member of the Board. Non-executive members’ appointments are approved by the Attorney General. The Standing Committee on Public Accounts is consulted on all non-executive member appointments in accordance with Section 228 (Consultation with appropriate Assembly Committee) of the Legislation Act 2001. The Commission’s Board consists of the following members:

Chairperson: Mr John Haskins, AM

Deputy Chairperson: Ms Alice Tay

Members: Mr Paul Baxter

Vacant

Chief Executive: Mr David Snowden


The Commission’s relationship with Access CanberraIn December 2014 it was announced that a number of regulatory functions across the ACT Government, including gambling regulation, would be brought together to create Access Canberra. In August 2016 an agreement between Access Canberra and the Commission on “the provision of services for the administration of the gaming laws including the control, supervision and regulation of gaming and racing in the ACT” (the Agreement) was executed.

The Agreement states that the GRC will commission work from Access Canberra to fulfil its obligations under the Control Act, and satisfy its objectives through the Access Canberra Accountability Commitment and as outlined in the 2014-2018 Strategic Plan, the 2016-17 Statement of Intent and the Gambling and Racing compliance framework.

Access Canberra acknowledges the responsibilities of the Commission as a statutory authority including those specified in the Control Act, other gaming laws, and the Commission’s Statement of Intent. Access Canberra provides staff and support to the Commission on a purchase service agreement to enable the Commission to meet its responsibilities and obligations.

PurposeThe Commission is an independent statutory authority responsible for ensuring the lawful conduct of gambling and racing in the ACT. The Commission was established by the Control Act which establishes the functions of the Commission including the administration of the Territory’s gaming and racing laws and the control, supervision and regulation of gaming and racing in the ACT.

The objectives central to the Gambling and Racing Compliance Framework are Harm Minimisation, Integrity and Protection.

Harm Minimisation – we actively seek to reduce the risks associated with gambling and minimise the potential harm caused by gambling to the individual and the community.

Integrity – we aim to minimise the possibility of criminal or unethical activity in the gambling and racing industry.

Protection – we will provide the community with factual information about gambling products so that people can make informed choices about their gambling. We will also provide the community with information about gambling harm, including how and where to obtain assistance. We aim to protect the community by reducing the risk of unethical or illegal gaming and racing dealings.


Figure 1: The relationship between our corporate objectives

Nature and Scope of ActivitiesAccess Canberra applies a risk-based compliance approach to ensure that its resources are targeted to where the risks of harm, unsafe practices or misconduct are the greatest, thereby strengthening its capacity to take action where the community, workers and the environment are most at risk. The Commission endorses this approach.

On behalf of the Commission, Access Canberra will promote the public interest by protecting consumers and reducing the risks and costs to the community and to individuals experiencing gambling harm. Access Canberra will continue to deliver these services on behalf of the Commission.

The Commission also has additional responsibilities relating to the conduct of research on the social effects of gambling and of gambling harm, as well as community education relating to gambling activity. These functions inform the Commission’s activities in protecting consumers and reducing the risks and costs to the community and individuals experiencing gambling harm.

Risks

In relation to the delivery of the Commission’s objectives, the following strategic risks have been identified. In broad terms, the Commission has a risk management register which is regularly reviewed and updated. High level strategic risks are also addressed in Access Canberra’s risk management register. The registers have been developed in accordance with the Whole of Government risk matrix template, the AS/NZS ISO 31000:2009 risk management standard, and the CMTEDD risk management framework and risk management plan.


Identified risks include:

failure to provide adequate services to stakeholder agencies within the ACT Government;

failure to achieve the Commission’s intended objectives;

failure to satisfy and meet external (non government) customer expectations;

failure to manage operations within allocated budget;

person(s) are injured during the course of work;

inability to ensure compliance with legislation and regulations (staff contractors – internal compliance); and

inability to effectively enforce compliance with legislation and regulations (external risk event).

The Commission has agreed for Access Canberra to apply a risk-based compliance approach to ensure that resources are targeted to where the risks of harm, unsafe practices or misconduct are the greatest, thereby strengthening the Commission’s capacity to take action where the community, workers and the environment are most at risk. Actions are prioritised based on a range of considerations, including:

conduct that causes harm or risk to life, health or the environment;

conduct that is systemic and is likely to have a detrimental effect on the community and/or the environment; and

conduct that demonstrates a blatant disregard for the law.

2017-18 priorities and next three financial yearsStrategic and operational issues to be pursued in 2017-18 include:

Harm Prevention

A function of the Commission is to monitor and research the social effects of gambling and gambling harm. Where data from research shows an increase in rates of people experiencing gambling harm in respect of a particular gambling product, the Commission, through Access Canberra, will focus on raising awareness of, and preventing, that harm.

This research includes investigating the prevalence of gambling and gambling harm, exploring ways in which gambling harm can develop and evaluating the effectiveness of existing and new harm prevention measures.


Findings from recent research initiated by the Commission indicate that while high intensity gambling harm can have a severe impact on gamblers and their families, the bulk of gambling harm is experienced by a larger group of Canberrans who experience moderate to low levels of harm.

In response to these findings and supported by advice as to an effective contemporary framework to best meet the needs of Canberrans experiencing or at risk of gambling harm, the Commission has endorsed the adoption of a public health approach to inform its harm prevention initiatives. A public health approach recognises that the harm people can experience from gambling can have a wide invasive effect upon the community which goes beyond the effect on the individual gambler. Furthermore, a public health approach recognises that in addition to financial stress there are wider mental and physical impacts that can and do extend throughout the community, be it through family, colleagues and friends or through wider social interactions between gamblers experiencing harm and the community.

The Commission will continue to provide and improve support and treatment for people experiencing high levels of gambling harm and it will also implement harm prevention strategies that will prevent and reduce gambling harm for all Canberrans.

Engage and Educate

Like any regulatory regime, the optimal outcome is voluntary compliance. Engagement and education plays a key role in maximising compliance. Engagement ensures a positive working relationship with the Commission’s stakeholders and members of the public. Education is a way of pre-empting non-compliance as well as reinforcing norms regarding obligations under the gaming laws.

Access Canberra, as agreed with the Commission, will continue to engage, provide advice and education to the community, individuals, licensees and gambling and racing industry stakeholders through the course of its proactive and reactive compliance programs. The goal is to ensure that the Commission’s stakeholders understand their rights, obligations and responsibilities under the ACT’s gaming laws.

Enforcement

There are a number of activities that Access Canberra will carry out on behalf of the Commission to monitor compliance. These activities are risk-based and resource allocation reflects the level of risk posed to the strategic objectives.

Enforcement builds on the engagement and education strategies and is applicable where there is demonstrable or significant harm or the potential for demonstrable or significant harm to eventuate if no action is taken.


Once it has been identified that an offence has been committed the next step is to determine the appropriate response. An educative response would be used where the conduct in question is low risk and has caused limited or no harm. An enforcement response would be used where the conduct in question has caused, or has the potential for, demonstrable or significant harm. Enforcement of legislative requirements includes, but is not limited to the following:

no further action;

increased inspection activity;

disciplinary action;

prosecution; or

injunction.

Estimated employment level

Table 1: Estimated employment level

2015-16Actual

Outcome

2016-17Budget

2016-17Estimated Outcome

2017-18Budget

Staffing (FTE) 20.8 01 0 0

Note(s):1. The reduction of 20.8 FTE in the 2016-17 Budget from the 2015-16 actual outcome is due to the transfer of

Commission staff to Access Canberra as at 1 July 2016 under a purchase service agreement. From this date, the GRC commissioned work from Access Canberra to fulfil its obligations.



Ensure the Accuracy of returns by Operators for Gambling Related Taxes and Levies on Behalf of the ACT Government

On behalf of the Commission, Access Canberra receives returns from operators along with payments for gambling related taxes and levies. The returns will be reconciled against operators’ activities for compliance and variation advice issued if discrepancies are identified. The aim of this is to reduce the number of variations through engagement and education with operators in the ACT. Compliant returns are an indication of the Commission’s performance in this area and ensures the correct amount of revenue is collected for the Government and community.

Strategic Indicator 1: Increase the accuracy of gambling taxation returns.

The increase in the accuracy percentage, as a proportion of returns, will indicate the success, or otherwise, of engagement and education with operators.


Figure 2: Percentage of Accurate Gambling Taxation Returns as a Proportion of Returns.

2015-16 2016-17 2017-18 2018-19 2019-20 2020-2194%

95%

96%

97%

98%

99%

100%

Forecast

Note(s): 1. New indicator for 2017-18 as a result of moving to a greater risk based approach to compliance activity. This indicator

measures the percentage of accurate gambling taxation returns received by Access Canberra on behalf of the Commission. This replaces the previous indicator that measured the actual number of variations (see 2016-17 ACT Budget).


Ensure Gambling Operators’ Compliance with Legislation

On behalf of the Commission, Access Canberra conducts a comprehensive inspection program to ensure that operators comply with relevant gaming and wagering legislation. Through this inspection program and its engagement and education approach to regulating operators, the Commission aims to increase compliance with the various gaming laws.

As a result of the enhanced engagement and education activities the Commission obtains information that is, within the risk and harm model, used to develop regulatory strategies in order to predict and prevent noncompliance.

Strategic Indicator 2: Regulatory education and engagement activities result in a decreasing need for the use of formal enforcement powers.

An increase in successful engagement with, and education, of licensees may decrease the use of formal enforcement powers as licensee behaviour is likely to show a higher level of regulatory compliance.


Figure 3: Engagement and Education Approach as a Percentage of Compliance Activities

2017-18 2018-19 2019-20 2020-2188%

90%

92%

94%

96%

98%

100%

Forecast

Note(s):1. New indicator for 2017-18 as a result of moving to a greater risk based approach to compliance activity. This indicator

measures the percentage of engagement and education, as opposed to enforcement, by Access Canberra on behalf of the Commission. This replaces the previous indicator that measured the actual number of breaches detected per audit (see 2016-17 ACT Budget).


To Reduce the Impact of Gambling Harm

The Commission must perform its functions in a way that reduces the risks and costs of gambling harm to the community and individuals. The Commission monitors the social effects of gambling and gambling harm in the ACT, and aims to reduce the impact of gambling harm through targeted research and implementing evidence based strategies.

The public health approach acknowledges that focusing attention on only the small group of people who are classified as “problem” gamblers will not in itself help to reduce the incidence of gambling harm in the population. Treating those already experiencing severe harms does not prevent or reduce the risk of others being harmed. In addition, research has shown that gambling harm can be a result not only of individual risk factors, but environmental, technological and socioeconomic factors.

The Commission uses public health informed strategies directed along a continuum of gambling harm. This includes:

supporting educative and gambling harm awareness strategies for the entire Canberra community;

ensuring compliance with regulatory protections;

providing self-help strategies for people at risk of experiencing harm;


a range of measures targeting people experiencing high levels of gambling harm including funding counselling services and relapse prevention strategies , targeted interventions include regulatory requirements such as warning messages, visibility of poker machines, and cash payout limits, and monitoring compliance during inspections and audits; and

funding gambling harm awareness courses for non-gambling specific community sector workers, information about help for people at risk including self-exclusion options, and gambling harm awareness activities and promotions.

Strategic Indicator 3: Develop and implement evidence based strategies to reduce the impacts of gambling harm.

Output Classes (Controlled GGS)

Output Class 1: Gambling Regulation and Harm Minimisation

Table 2: Output Class 1: Gambling Regulation and Harm Minimisation


$'000 $'000


Note(s):1. Total cost includes depreciation and amortisation of $0.041 million in 2016-17 and $0.029 million in 2017-18.

Output 1.1: Gambling Regulation and Harm Minimisation

The Commission purchases the following services from Access Canberra:

administration of gaming laws;

the control, supervision and regulation of gaming in the Territory;

collection and verification of gambling taxes, levies, fees and charges; and

the development and implementation of projects through the Problem Gambling Assistance Fund.

Table 3: Output 1.1: Gambling Regulation and Harm Minimisation


$'000 $'000





Output Class 1: Gambling Regulation and Harm Minimisation

Output 1.1: Gambling Regulation and Harm Minimisation


2016-17Targets


2017-18Targets

a. Initiate or complete research projects; analyse significant research projects conducted elsewhere

5 5 5

b. Initiate or complete projects through the Problem Gambling Assistance Fund

4 4 4

c. Percentage of customers satisfied with the Gambling and Racing Commission1

90% 90% 90%

d. Percentage of the Canberra community satisfied with the ease of interacting with the Gambling and Racing Commission2

90% 90% 95%

e. Number of inspections conducted3 450 450 n/af. Compliance at time of inspection4 90% 90% n/ag. Percentage of license application processed

within service standard timeframes595% 95% n/a

h. Compliance rate during targeted campaign inspections6

n/a n/a 90%

i. Compliance activities: engage, educate, enforce7

n/a n/a Ratio:70:20:10

j. Average number of days to issue business authorisation or personal registration8

n/a n/a 10 working days or less for

business 5 working days

or less for personal

k. Average level of helpfulness after issuing a notice or before issuing a license/authorisation9

n/a n/a 4.2 out of 5

Note(s):1. The customer satisfaction result is determined by the responses to an independent annual survey of licensees. The

survey is a measure of the awareness, attitudes, behaviour and customer satisfaction of/with Commission's the corporate identity, channels and services.

2. The satisfaction with ease of interacting result is determined by the responses to an independent annual survey of the Canberra community. The survey is a measure of the awareness, attitudes, behaviour and customer satisfaction of/with Access Canberra's corporate identity, channels and services on behalf of the Commission. One of the initiatives undertaken is conducting joint inspections which has resulted in the ACT community finding it easier than expected to interact with the Commission.

3. Discontinued accountability indicator. This accountability indicator is an indication of the activities undertaken by Access Canberra on behalf of the Commission to build industry and community awareness, capability and compliance. This was achieved annually through inspections under legislation administered by Commission in order to maintain and enhance community confidence in available services. Inspections included inspections, audits and investigations.

4. Discontinued accountability indicator. This was a measure of annual compliance with relevant regulations and legislation. The result was based on a random sample of licensees.


5. Discontinued accountability indicator. This accountability indicator indicated the time taken to assess and issue licensing for regulatory activities. The indicator was calculated annually and was calculated from the receipt of complete and correct paperwork from applicant through to approval/issuance.

6. New accountability indicator. Initial rates of compliance are assessed against a predetermined set of criteria set for targeted inspection campaigns. Following the completion of the campaign compliance rates are again assessed to determine the percentage shift in compliance.

7. New accountability indicator. This accountability indicator sets a ratio for the engagement and education functions that are separate from the Commission exercising its enforcement powers against an industry, business or individual. Increasing efforts to educate and inform individuals, business and industries about their responsibilities and legal requirements leads to increased compliance rates, a reduction in complaints and the need for enforcement responses.

8. New accountability indicator. This accountability indicator measures the average number of days it takes to issue business authorisations and personal registrations.

9. New accountability indicator. Feedback is collected from an on-going internal phone survey of randomly selected industry groups that have had a regulatory interface with the Commission. Results are collated annually using a helpfulness score: (1:5) 5 being greatest level of support and 1 the lowest.




$'000

2017-18 Budget

$'000

2018-19 Estimate

$'000

2019-20 Estimate

$'000

2020-21 Estimate

$'000

2016-17 Budget 4,853 4,913 4,995 5,079 5,079

2017-18 Budget Technical AdjustmentsRevised Indexation Parameters - - - - 124

2017-18 Budget 4,853 4,913 4,995 5,079 5,203

Monitoring and reportingThe Commission shall satisfy the requirements of the Chief Minister’s Annual Reports Directions. The Commission’s Annual Report will, amongst other things, report against the requirements of this Statement of Intent.

The Financial Management Act 1996 authorises the Treasurer to obtain financial and other statements from the Commission for a stated period including annual, quarterly and monthly reporting.

Quarterly reporting

To enable consolidated whole of Government reporting requirements to be met on a quarterly basis, the Commission will ensure the availability to the Treasurer, through the Chief Minister, Treasury and Economic Development Directorate (CMTEDD) (by the eighth working day of each quarter, unless otherwise indicated), information, in the prescribed form and detail, in respect of the previous quarter:


Balance Sheet;


Statement of Changes in Equity;

Cash Flow Statement;

Operating Statement material variance explanations against seasonal budget provided by the ACT Gambling and Racing Commission;

Status Report to supplement performance reporting to the Assembly and provide stakeholders with a summary on progress against budget highlights, significant initiatives and major projects (by the tenth working day of each quarter); and

Management Discussion and Analysis of results to date, forecast results and related issues that may impact on the financial condition of the ACT Gambling and Racing Commission (by the tenth working day of each quarter).

Monthly reporting

In addition to the quarterly information required as identified above, on a monthly basis the Commission will ensure the availability to the Treasurer through CMTEDD (by the eighth working day of each month) the financial statements, in the prescribed form and required detail, in respect of the previous calendar month.

Annual reporting

As part of preparations for end of year reporting, CMTEDD will advise the dates when the following documents are required at the CMTEDD and at the Auditor-General's Office:





Financial ArrangementsThe budgeted operating revenues included under the Commission’s financial plan are received as an appropriation based on the Commission’s budgeted expenditure for the period.

The Commission does not expect any additional major transactions to occur other than as indicated in the budgeted financial statements.


Financial StatementsBudgeted financial statements for the 2017-18 Budget year, as well as forward estimates for the three financial years commencing 2017-18 appear below. These general purpose financial statements include:


Balance Sheet;


Cash Flow Statement; and

Notes to the Financial Statements as appropriate including variations from the 2016-17 Budget to the 2016-17 estimated outcome and variances from the 2016-17 estimated outcome to the 2017-18 Budget that are in excess of $0.250 million and 5 per cent.



Table 6: ACT Gambling and Racing Commission: Operating Statement

2016-17 Budget

$'000


$'000

2017-18 Budget

$'000

Var%

2018-19 Estimate

$'000

2019-20 Estimate

$'000

2020-21 Estimate

$'000


Payments4,853 4,913 1 4,995 5,079 5,203

54,382 Taxes, Fees and Fines 52,882 54,213 3 55,398 56,783 58,188101 Interest 101 104 3 107 110 112


25 25 - 25 25 25

1,120 Other Revenue 1,120 1,142 2 1,171 1,200 1,230

60,481 Total Revenue 58,981 60,397 2 61,696 63,197 64,758

Expenses 125 Employee Expenses 125 127 2 129 131 133

13 Superannuation Expenses 13 13 - 13 13 131,120 Supplies and Services 1,120 1,142 2 1,171 1,200 1,232


41 29 -29 17 17 17


4,656 4,708 1 4,788 4,870 4,992

54,382 Transfer Expenses 52,882 54,213 3 55,398 56,783 58,188

60,337 Total Expenses 58,837 60,232 2 61,516 63,014 64,575

144 Operating Result 144 165 15 180 183 183


144 165 15 180 183 183


Table 7: ACT Gambling and Racing Commission: Balance Sheet

Budgetat

30/6/17 $'000

Est.Outcome as at

30/6/17 $'000

Budgetat

30/6/18 $'000

Var%

Estimateat

30/6/19 $'000

Estimateat

30/6/20 $'000

Estimateat

30/6/21 $'000

Current Assets4,259 Cash and Cash Equivalents 4,595 4,777 4 4,962 5,150 5,3384,069 Receivables 4,170 4,175 .. 4,180 4,185 4,190

12 Other Assets 9 9 - 9 9 9


Non Current Assets10 Property, Plant and

Equipment5 10 100 15 20 25

72 Intangible Assets 274 250 -9 238 226 214

82 Total Non Current Assets 279 260 -7 253 246 239

8,422 TOTAL ASSETS 9,053 9,221 2 9,404 9,590 9,776

Current Liabilities4,105 Payables 4,033 4,036 .. 4,039 4,042 4,045

90 Employee Benefits 48 48 - 48 48 4835 Other Liabilities 35 35 - 35 35 35

4,230 Total Current Liabilities 4,116 4,119 .. 4,122 4,125 4,128

Non Current Liabilities

4,230 TOTAL LIABILITIES 4,116 4,119 .. 4,122 4,125 4,128

4,192 NET ASSETS 4,937 5,102 3 5,282 5,465 5,648


4,189 Accumulated Funds 4,937 5,102 3 5,282 5,465 5,6483 Asset Revaluation Surplus 0 0 - 0 0 0

4,192 TOTAL FUNDS EMPLOYED 4,937 5,102 3 5,282 5,465 5,648


Table 8: ACT Gambling and Racing Commission: Statement of Changes in Equity

Budgetat

30/6/17 $'000

Est.Outcome as at

30/6/17 $'000

Budgetat

30/6/18 $'000

Var%

Estimateat

30/6/19 $'000

Estimateat

30/6/20 $'000

Estimateat

30/6/21 $'000

Opening Equity4,045 Opening Accumulated Funds 4,793 4,937 3 5,102 5,282 5,465

3 Opening Asset Revaluation Reserve

0 0 - 0 0 0


4,793 4,937 3 5,102 5,282 5,465


Economic Flows144 165 15 180 183 183


144 165 15 180 183 183


Closing Equity4,189 Closing Accumulated Funds 4,937 5,102 3 5,282 5,465 5,648

3 Closing Asset Revaluation Reserve

0 0 - 0 0 0


4,937 5,102 3 5,282 5,465 5,648


Table 9: ACT Gambling and Racing Commission: Cash Flow Statement

2016-17 Budget

$'000


$'000

2017-18 Budget

$'000

Var %

2018-19 Estimate

$'000

2019-20 Estimate

$'000

2020-21 Estimate

$'000



4,853 4,913 1 4,995 5,079 5,203

54,382 Taxes, Fees and Fines 52,882 54,213 3 55,398 56,783 58,188101 Interest Received 101 104 3 107 110 112

1,239 Other 1,428 1,261 -12 1,290 1,319 1,34960,575 Operating Receipts 59,264 60,491 2 61,790 63,291 64,852

Payments125 Employee 125 127 2 129 131 133

13 Superannuation 13 13 - 13 13 131,120 Supplies and Services 1,028 1,119 9 1,148 1,177 1,2094,564 Grants and Purchased

Services4,656 4,708 1 4,788 4,870 4,992

54,382 Transfer of Territory Receipts to the ACT Government

52,882 54,213 3 55,398 56,783 58,188

119 Other 119 119 - 119 119 11960,323 Operating Payments 58,823 60,299 3 61,595 63,093 64,654


441 192 -56 195 198 198


Payments10 Purchase of Property, Plant

and Equipment10 10 - 10 10 10

10 Investing Payments 10 10 - 10 10 10


-10 -10 - -10 -10 -10


2016-17 Budget

$'000


$'000

2017-18 Budget

$'000

Var %

2018-19 Estimate

$'000

2019-20 Estimate

$'000

2020-21 Estimate

$'000

CASH FLOWS FROM FINANCING ACTIVITIES

Payments946 Payment of Transferred Cash

Balances946 0 -100 0 0 0

946 Financing Payments 946 0 -100 0 0 0

-946 NET CASH INFLOW/(OUTFLOW) FROM FINANCING ACTIVITIES

-946 0 100 0 0 0

-704 NET INCREASE / (DECREASE) IN CASH AND CASH EQUIVALENTS

-515 182 135 185 188 188


5,110 4,595 -10 4,777 4,962 5,150


4,595 4,777 4 4,962 5,150 5,338



Operating Statement

There are no significant variations to the Operating Statement.

Balance Sheet

cash and cash equivalents: the increase of $0.336 million in the 2016-17 estimated outcome from the original budget is mainly due to flow-on effects from the 2015-16 audited outcome.

Statement of Changes in Equity and Cash Flow Statement

There are no significant variations to the Statement of Changes in Equity or Cash Flow Statement.


ACT INSURANCE AUTHORITY – STATEMENT OF INTENT

The ACT Insurance Authority is a Territory Authority established under the Insurance Authority Act 2005.


The responsible Minister, Mr Andrew Barr MLA, was consulted during the preparation of the Statement of Intent.

The Statement of Intent, which focuses on the 2017-18 Budget year, has been developed in the context of a four year forward planning horizon to be incorporated, as far as practicable, into the ACT Insurance Authority strategic and business planning processes.

The ACT Insurance Authority 2017-18 Statement of Intent has been agreed between:

201718 Budget Statements 142 ACT Insurance Authority

ACT INSURANCE AUTHORITY

Purpose

The organisation

The ACT Insurance Authority (the Authority) operates under the ACT Insurance Authority Act 2005 (the Act).

The Act establishes the Authority as the ACT Government’s captive insurer providing advice to the Minister about insurance and the management of territory risks.

The Authority works to protect the assets and services of the Territory by providing risk management support and insurance services to all ACT Government directorates and statutory authorities; the Authority meets the insurable claims and losses of ACT Government agencies.

The portfolio represents just over $24 billion of insured assets, with forecast annual premium revenue in 2017-18 of $50.9 million and a forecasted equity position of $89.2 million.

The Authority reports to the Treasurer through the Under Treasurer, Chief Minister, Treasury and Economic Development Directorate and is financed through risk-based premiums that reflect the asset holdings and liability risks faced by each agency.

Principle objectives

The objectives of the Authority are to:

carry on the business of insurer of territory risks;

take out insurance of territory risks with other entities;

satisfy or settle claims in relation to territory risks;

develop and promote good practices for the management of territory risks; and

give advice to the Minister about insurance and the management of territory risks.

In addition, the Authority also performs the function of:

the Office of Nominal Defendant of the ACT, for claims against uninsured and unidentified vehicles for the ACT Compulsory Third Party Insurance Scheme; and

the Default Insurance Fund, for default claims under the ACT Private Workers Compensation Scheme.


The Authority’s operational model is focused on satisfying these objectives by taking a leadership role to reduce the total cost of risk to the Territory and individual agencies. This focus leverages on the integration of core functions as the:

insurer and reinsurer of territory risks;

manager of claims;

risk management advisor to the ACT Government; and

insurance advisor to the ACT Government.

Clients The Authority provides advice to the Minister about insurance and management of territory risks. The Authority operates as the captive insurer of all ACT Government directorates and statutory authorities. The core services provided to directorates are insurance, claims and risk management services.

The insurance coverage provided via indemnity agreement is broad form cover that includes:

liability;

medical malpractice;

professional indemnity;

property damage; and

others including: standing timber, specialised motor, overseas travel, directors and officers and financial crime.


General activities

The general activities the Authority intends to undertake in achieving its principle objectives are to:

provide professional advice to the ACT Government and territory agencies on insurance and risk management issues;

deliver a value for money reinsurance program to protect the Territory budget;

continue to maximise reinsurance recoveries;

review the Territory asset register as part of the insurance renewal process;

develop business practices which will enable the Authority to achieve best practice results, and if feasible, reduced premiums for agencies;


proactively manage claims against the Territory in consultation with agency stakeholders and in accordance with the ACT model litigant requirements;

conduct regular reviews of existing claims to ensure that appropriate management is being applied and that realistic claim estimates are included in financial statements;

facilitate agency access to the claims reporting and data analysis to support a risk managed approach to operational and asset management;

continue to assist agencies with the application of the ACT Government Risk Management Framework;

work with agencies to reduce the number and severity of incidents and ultimate claims cost;

deliver to agencies a program of general and targeted risk management training;

administer the Office of the Nominal Defendant of the ACT; and

administer the Default Insurance Fund on behalf of the Chief Minister, Treasury and Economic Development Directorate.

RisksThe Authority has developed and implemented a risk management plan in accordance with the Australian/New Zealand Standard on risk management AS/NZS ISO 31000:2009 and the ACT Government’s Risk Management Framework. The Authority’s plan identifies and details risks and control measures and treatment action plans for risks in the financial, business and information technology dependencies.

The Authority has identified the following keys risks:

external insurance arrangements being unsatisfactory; and

annual premiums not geared to fully fund claims over the claim development period.

In order to manage these risks the Authority uses skilled international brokers to access the international reinsurance market and actuaries who provide premium advice that align premiums with forecast claim costs.

2017-18 priorities and next three financial yearsStrategic and operational priorities to be pursued in 2017-18 and for the next three financial years include:

implementing a program of reinsurance to protect the Territory budget based on an appropriate balance between transferred and retained risk;

proactively managing claims against the Territory in consultation with agency stakeholders and in accordance with the ACT model litigant requirements;


assisting agencies with the implementation and continuous improvement of risk management practices within the Territory that reflects international standards and business best practice;

delivering a program of targeted risk management seminars for agencies that increase the level of stakeholder engagement on relevant topics;

implementing an insurance management system consistent with the requirements identified in the Authority’s Information Communication Technology Review; and

developing a long term investment strategy with investment options that target investment returns and strategic asset allocation.

Estimated employment level and employment profile


2015-16Actual

Outcome

2016-17Budget


2017-18Budget

Staffing (FTE) 16 16 171 192

Note(s):1. The variation between the 2016-17 Budget and the 2016-17 estimated outcome is due to the Authority having

absorbed one position from the Default Insurance Fund.2. The increase of three FTE in the 2017-18 Budget from the 2016-17 Budget is due to the recruitment of additional

resources required in staffing levels following an organisational restructure.

Table 2: 2017-18 employment profile

Classification Male Female TotalSenior Executive 1 - 1SOG A 1 - 1SOG B - 3 3SOG C 1 1 2ASO6 - 4 4ASO5 1 7 8Total 4 15 19



Table 3: Key performance indicators for the ACT Insurance Authority (ACTIA) (should be read in conjunction with the accompanying notes)

Objective Key performance indicatorPlanned

2017-18 2018-19 2019-20 2020-21

Carry on the business of insurer of territory risks

(a) Results from an annual customer satisfaction survey:

- Overall customer satisfaction with insurance management services

> 90% > 90% > 90% > 90%

- Overall customer satisfaction of Claims Management

> 80% > 80% > 80% > 80%

- Overall customer satisfaction of Annual Insurance Renewal

> 80% > 80% > 80% > 80%

- Overall customer satisfaction of Financial Management Services

> 80% > 80% > 80% > 80%

(b) Determine annual insurance premiums for territory agencies that allow for full funding of claim costs and associated expenses

Annual premium

determination completed

Annual premium


Annual premium


Annual premium


(c) Maintain the ACTIA Funding Ratio within the targeted range of 100%-110% as outlined in the ACTIA Capital Management Plan

132% 130% 128% 125%

(d) General and administrative expense as a percentage of total Annual Premium revenue

5% 5% 5% 5%

(e) The average number of days to process payments for the settlement of claims from the day all required documents are received

10 days 10 days 10 days 10 days

(f) Review the Territory’s insurance and reinsurance programs to ensure they are appropriate for its needs

Annual review completed




Take out insurance of territory risks with other entities

(g) Review the Territory’s property asset register to ensure that values provided by agencies reflect insurance replacement costs





(h) Complete Property Loss Control Surveys at a number of selected territory locations

Survey 8 locations

Survey 8 locations

Survey 8 locations

Survey 8 locations


Objective Key performance indicatorPlanned

2017-18 2018-19 2019-20 2020-21

Take out insurance of territory risks with other entities - cont

(i) Hold quarterly reviews of all public liability and medical malpractice claims to assess the claim management strategy for matters where the Territory’s reserve exceeds $250,000

Quarterly claims review meetings held




Satisfy or settle claims in relation to territory risks

(j) Insurance claims data:Property & Motor- Discounted Mean Term

(for Outstanding Claims)1.01Years

1.02Years

1.02Years

1.02Years

- Ultimate Claim Numbers 59 59 59 59- Average Small Claim

(<$1 m) Settlement Size$63,980 $66,138 $68,784 $71,535

Liability- Discounted Mean Term


4.62Years

4.57Years

4.53Years



- Average Large Claim (>$1 m) Settlement Size

$3,634,268 $3,756,856 $3,907,131 $4,063,416

Medical Malpractice- Discounted Mean Term


6.75Years

6.68Years

6.62Years




$5,051,599 $5,221,995 $5,430,875 $5,648,110

Develop and promote good practices for the management of territory risks

(k) Provide Risk Profile Reports to assist agencies by profiling and measuring their risk management progress

Bi-annual reports

provided to agencies

Bi-annual reports


Bi-annual reports


Bi-annual reports


(l) Deliver a program of general and targeted risk management training courses to territory agencies

12 12 15 18

(m) Overall participant satisfaction with risk management training sessions delivered to Agency staff members

> 90% > 90% > 90% > 90%

Give advice to the Minister about insurance and the management of territory risks

(n) Provide briefing material on the agency Annual Insurance Premiums

Brief provided to the

Minister


Minister


Minister


Minister(o) Provide briefing material

on the Reinsurance Program


Minister


Minister


Minister


Minister(p) Provide briefing material

on the Authority’s Capital Management Plan


Minister


Minister


Minister


Minister


Notes for the key performance indicators:(a) Surveys are sent to the Directors-General, Chief Executive Officers and other key stakeholders of ACT Government

directorates and statutory authorities insured by ACTIA. Respondents are asked to rate performance against the ACTIA Client Service Charter that details what agencies can expect when doing business with ACTIA.

(b) ACTIA completes an annual review of agency insurance premiums, with assistance from the fund actuary, PricewaterhouseCoopers Actuarial Pty Ltd. Annual premiums are determined based on agency claims history, asset ownership and risk profile.

(c) The Authority has a funding target ratio of between 100%-110% as set out in the ACTIA capital management plan. The funding ratio is calculated by dividing total assets by total liabilities. These parameters guide decision making to address a capital position outside the targeted ratio range. This would include action to seek capital injections (in a deficit situation) or surrendering excess capital (in a surplus situation).

(d) ACTIA general and administrative expenses as a percentage of annual premium revenue are measured against a targeted average of the Authority’s actual results from the previous three years.

(e) ACTIA processes payments for the settlement of claims as a priority. The number of days to process a payment is measured from the date all required documentation is received by the Authority to the date payment is made.

(f) ACTIA completes an annual review of the Territory's insurance arrangements. This includes a review of the Territory's reinsurance program structure, an analysis of market conditions and the suitability of policy terms and conditions.

(g) ACTIA completes a review of the replacement values detailed in the Territory's asset schedule as part of the property reinsurance renewal.

(h) An annual Property Loss Control Survey Program is undertaken by the Authority’s property reinsurers. Property loss control reports identify the potential for property loss and assist agencies to reduce the risks of loss through loss prevention efforts. Recommendations are communicated to surveyed territory agencies for consideration.

(i) Quarterly claims review meetings are held to review all liability and medical malpractice claims where the Territory’s reserve exceeds $250,000. Meetings are attended by representatives of the ACT Government Solicitor’s Office, ACTIA’s insurance brokers, Marsh Pty Ltd, as well as external insurers and their solicitors.

(j) Insurance claims data is provided by the Authority’s actuary, PricewaterhouseCoopers Actuarial Pty Ltd, at the end of each financial year. The data displays an actuarial assessment of the discounted mean term to finalise claims, ultimate claims numbers, and the average cost of large and small claims. The forward estimates include general actuarial assumptions of growth, for example, population and price indexation.

(k) Risk Profile Reports are provided to directorates, the reports contain a detailed anaylsis of claim numbers and costs by insurance class and provide a comparison of their directorate against the whole of ACT Government. The reports are provided biannually.

(l) ACTIA delivers a program of risk management training courses that covers general introductory and intermediate level risk management, and topic specific training sessions in the modification and use of risk management software tailored to meet agency requirements.

(m) ACTIA delivers risk management training courses and attendees complete feedback forms. Attendees are asked to assess the course based on areas such as, course suitability, facilitators’ knowledge and whether they would recommend the training.

(n) ACTIA prepares a brief for decision by the Minister each year seeking agreement to the annual premiums charged to agencies for inclusion in the ACT Government budget.

(o) ACTIA prepares a brief for decision by the Minister each year seeking agreement to proceed with renewal of the Territory’s reinsurance program on the best available terms in the London and Australian insurance markets for the following insurance year.

(p) ACTIA prepares a brief for decision by the Minister each year seeking agreement on the ACTIA Capital Management Plan.


Table 4: Performance indicators for 2017-18: amended performance indicators1

2016-17 Indicator 2017-18 Indicator

Provide briefing material on the Authority’s Annual Report Provide briefing material on the Authority’s Capital Management Plan

Facilitate Property Loss Control Surveys undertaken at a number of selected territory locations

Complete Property Loss Control Surveys at a number of selected territory locations

Note(s):1. This table is a comparison between the 2016-17 description and the 2017-18 amendments.

Assessment of performance against 2016-17 objectives

Table 5: Assessment of performance against 2016-17 objectives

Objective Indicator Planned2016-17

Est. Outcome2016-17 Explanation of Variance

Carry on the business of insurer of territory risks

(a) Results from an annual customer satisfaction survey:

- Overall customer satisfaction with insurance management services

>90% 95% Nil

- Overall customer satisfaction of Claims Management

>80% 95% Nil

- Overall customer satisfaction of Annual Insurance Renewal

>80% 85% Nil

- Overall customer satisfaction of Financial Management Services

>90% 92% Nil

(b) Determine annual insurance premiums for territory agencies that allow full funding of claim costs and associated expenses

Annual premium


Annual premium


Completed

(c) Maintain the ACTIA Funding Ratio within the targeted range of 100%-110% as outlined in the ACTIA Capital Management Plan

122% 134% Authority’s strong capital position is due to a decrease in liabilities which is the result of continued favourable

claims experience(d) General and administrative

expense as a percentage of total Annual Premium revenue

5% 5% Nil

(e) The average number of days to process payments for the settlement of claims from the day all required documents are received from the agency

10 days 10 days Nil

(f) Review the Territory’s insurance and reinsurance programs to ensure they are appropriate for its needs



Completed

Take out insurance of territory risks with other entities

(g) Review the Territory’s property assets register to ensure that values provided by agencies reflect insurance replacement costs



Completed




Take out insurance of territory risks with other entities - cont

(h) Facilitate Property Loss Control Surveys undertaken at a number of selected territory locations

7 8 An extra territory site was surveyed at the

request of the reinsurers

(i) Hold quarterly reviews of all liability and medical malpractice claims to assess the claim management strategy for matters where the Territory’s reserve exceeds $250,000

Quarterly claims review

meetings held

Quarterly claims review

meetings held

Completed

Satisfy or settle claims in relation to territory risks

(j) Insurance claims data:Property & Motor- Discounted Mean Term


1.02Years

- Ultimate Claim Numbers 52 59 The variance in ultimate claim numbers is the

result of an increase in the forecasted number

of claims being reported- Average Small Claim (<$1 m)

Settlement Size$61,580 $62,060

Public Liability- Discounted Mean Term


4.70Years

- Ultimate Claim Numbers 128 139- Average Small Claim (<$1 m)

Settlement Size$99,570 $88,837 The average settlement

size of small claims has decreased due to claims

settling more quickly and for a lower cost

than previously experienced


$3,425,441 $3,525,204

Medical Malpractice- Discounted Mean Term


6.89Years

- Ultimate Claim Numbers 95 89- Average Small Claim (<$1 m)

Settlement Size$247,661 $251,606


$4,900,000 $4,900,000

Develop and promote good practices for the management of territory risks

(k) Provide Risk Profile Reports to assist agencies by profiling and measuring their risk management progress

Bi-annual reports


Bi-annual reports


Completed

(l) Deliver a program of general and targeted risk management training courses to territory agencies

12 20 There has been an increase in demand for

training due to an increased level of engagement with

agencies(m) Overall participant satisfaction

with introduction to risk management training sessions delivered to Agency staff members

>90% 95% Nil




Give advice to the Minister about insurance and the management of territory risks

(n) Provide briefing material on the agency Annual Insurance Premiums

Brief provided to the Minister


Completed

(o) Provide briefing material on the Reinsurance Program



Completed

(p) Provide briefing material on the Authority’s Annual Report



Completed

Monitoring and reportingThe Authority shall satisfy the requirements of the Chief Minister’s Annual Reports Directions. The Authority’s Annual Report will, amongst other things, report against the requirements of this Statement of Intent.

The Financial Management Act 1996 authorises the Treasurer to obtain financial and other statements from the Authority for a stated period including monthly, quarterly and annual reporting.

Monthly reportingThe Authority prepares monthly reports that are available to the Treasurer through the Chief Minister, Treasury and Economic Development Directorate by the eighth working day of each month. These reports will be presented in the prescribed form and required detail, in respect of the previous calendar month:


Balance Sheet; and


Quarterly reportingTo enable consolidated whole of government reporting requirements to be met on a quarterly basis, the Authority will ensure the availability of the previous quarter’s Management Discussion and Analysis to the Treasurer, through the Chief Minister, Treasury and Economic Development Directorate by the tenth working day of each quarter. This will be presented in the prescribed form and detail, and show results to date, forecast results and related issues that may impact on the financial condition of the Authority.

Annual reportingAs part of preparations for end of year reporting the Chief Minister, Treasury and Economic Development Directorate will advise the dates when the following documents are required at the Audit Office and to the Chief Minister, Treasury and Economic Development Directorate, these include:






Financial ArrangementsThe Authority operates on a cost recovery basis by collecting premiums from directorates and statutory authorities to meet the cost of insurable claims and losses. The Authority’s operating costs are largely driven by provisioning for future claims and current claims expense.

The Authority’s estimated outcome is an operating profit of $17.1 million in 2016-17. The result is a $16.2 million increase from the original budget of an operating profit of $0.9 million in the 2016-17 Budget.

This result is due to an expected increase in total income of $3.6 million and a decrease in total expenses of $12.6 million.

The increase in income is predominately due to an unrealised gain on investments of $1.5 million as the result of an increase in the unit value of the Authority’s cash enhanced investment along with an increase of $1.4 million in interest and distribution from investments and an increase of $0.7 million in other revenue.

The decrease in expenses is predominately due to a decrease in the Authority’s claims expenses of $16.2 million that results from a reduction in the Authority’s outstanding claims liabilities. This is offset by an increase in other expenses as a result of an unrealised loss on investments due to a decrease in the unit value of the Authority’s fixed interest investment.

The reduction in the liability is due to continued improvement in claims experience, in particular large claims in medical malpractice, claims continue to decrease in both claim size and reported numbers. Further to this, changes in the applied discount rate, inflation rate and expected payments verses actual payments have also reduced the claims liability.

The Authority manages the Default Insurance Fund (DIF) and Office of Nominal Defendant of the ACT (ND). The Authority provides services on a cost recovery basis and recovers these costs from DIF and ND on a six monthly basis.

Financial StatementsBudgeted financial statements for the 2017-18 Budget year, as well as forward estimates for the three financial years appear below. These general purpose financial statements, have been prepared in accordance with the ACT’s Model Financial Statements and include:




Table 6: ACT Insurance Authority: Operating Statement

2016-17 Budget

$'000


$'000

2017-18 Budget

$'000

Var%

2018-19 Estimate

$'000

2019-20 Estimate

$'000

2020-21 Estimate

$'000

Income

Revenue51,156 User Charges 51,126 50,945 .. 52,982 55,101 57,304

711 Interest 1,083 1,095 1 1,108 1,117 1,1328,251 Distribution from

Investments with the Territory Banking Account

9,265 9,583 3 10,239 10,895 11,553

2,086 Other Revenue 2,826 2,410 -15 2,468 2,531 2,444

62,204 Total Revenue 64,300 64,033 .. 66,797 69,644 72,433

Gains0 Other Gains 1,500 0 -100 0 0 0

0 Total Gains 1,500 0 -100 0 0 0

62,204 Total Income 65,800 64,033 -3 66,797 69,644 72,433


298 Superannuation Expenses 271 312 15 315 320 324841 Supplies and Services 832 893 7 1,004 1,030 1,054


30 40 33 50 50 50

1,800 Other Expenses 6,005 2,035 -66 2,079 2,127 2,0287,710 Outward Reinsurance

Expense6,944 7,500 8 7,687 7,880 8,077

48,874 Claims Expense 32,678 48,732 49 52,422 56,248 60,229

61,348 Total Expenses 48,700 61,559 26 65,630 69,755 73,890

856 Operating Result 17,100 2,474 -86 1,167 -111 -1,457


17,100 2,474 -86 1,167 -111 -1,457


Table 7: ACT Insurance Authority: Balance Sheet

Budgetat

30/6/17 $'000

Est.Outcome as at

30/6/17 $'000

Budgetat

30/6/18 $'000

Var%

Estimateat

30/6/19 $'000

Estimateat

30/6/20 $'000

Estimateat

30/6/21 $'000

Current Assets5,566 Cash and Cash Equivalents 12,368 12,998 5 13,567 14,397 13,988

159,179 Investments 161,622 186,614 15 211,608 236,602 261,5952,562 Receivables 2,842 3,000 6 3,164 3,329 3,494

293 Other Assets 365 365 - 365 365 365


Non Current Assets173,121 Investments 171,001 171,001 - 171,001 171,001 171,001

192 Property, Plant and Equipment

256 226 -12 196 166 136

45 Intangible Assets 0 190 # 170 150 130523 Other Assets 326 326 - 326 326 326

173,881 Total Non Current Assets 171,583 171,743 .. 171,693 171,643 171,593

341,481 TOTAL ASSETS 348,780 374,720 7 400,397 426,336 451,035




Non Current Liabilities247,519 Payables 221,972 241,877 9 263,327 285,773 308,940


248,073 Total Non Current Liabilities 222,311 242,216 9 263,666 286,112 309,279


61,819 NET ASSETS 86,691 89,165 3 90,332 90,221 88,764


61,819 Accumulated Funds 86,691 89,165 3 90,332 90,221 88,764



Table 8: ACT Insurance Authority: Statement of Changes in Equity

Budgetat

30/6/17 $'000

Est.Outcome as at

30/6/17 $'000

Budgetat

30/6/18 $'000

Var%

Estimateat

30/6/19 $'000

Estimateat

30/6/20 $'000

Estimateat

30/6/21 $'000



119,591 86,691 -28 89,165 90,332 90,221


Economic Flows17,100 2,474 -86 1,167 -111 -1,457


17,100 2,474 -86 1,167 -111 -1,457


Transactions Involving Owners Affecting Accumulated Funds-50,000 Dividends - Return of Capital -50,000 0 100 0 0 0


-50,000 0 100 0 0 0



86,691 89,165 3 90,332 90,221 88,764


Table 9: ACT Insurance Authority: Cash Flow Statement

2016-17 Budget

$'000


$'000

2017-18 Budget

$'000

Var %

2018-19 Estimate

$'000

2019-20 Estimate

$'000

2020-21 Estimate

$'000


51,156 User Charges 51,126 50,945 .. 52,982 55,101 57,304711 Interest Received 1,083 1,095 1 1,108 1,117 1,132

8,251 Distribution from Investments with the Territory Banking Account

13,664 9,426 -31 10,075 10,731 11,390

92,394 Workers Compensation Receipts

85,729 63,262 -26 64,743 67,398 69,032

29,004 Other 26,531 21,610 -19 22,291 23,174 23,753181,516 Operating Receipts 178,133 146,338 -18 151,199 157,521 162,611


298 Superannuation 271 312 15 315 320 324841 Supplies and Services 832 892 7 1,003 1,028 1,052

97,830 Workers Compensation Payments

83,017 62,263 -25 64,442 66,697 69,032

7,710 Outward Reinsurance Payments

6,944 7,500 8 7,687 7,880 8,077

24,979 Claims Payments 30,815 26,266 -15 28,212 30,914 34,08228,718 Other 25,567 21,233 -17 21,903 22,773 23,338

162,140 Operating Payments 149,377 120,508 -19 125,630 131,691 138,020

19,376 NET CASH INFLOW/(OUTFLOW) FROM OPERATING ACTIVITIES

28,756 25,830 -10 25,569 25,830 24,591


75,000 Proceeds from Sale/Maturity of Investments

70,000 10,000 -86 10,000 10,000 10,000

75,000 Investing Receipts 70,000 10,000 -86 10,000 10,000 10,000

Payments0 Purchase of Property, Plant

and Equipment175 0 -100 0 0 0

50 Purchase of Land and Intangibles

0 200 # 0 0 0

40,000 Purchase of Investments 40,000 35,000 -13 35,000 35,000 35,00040,050 Investing Payments 40,175 35,200 -12 35,000 35,000 35,000

34,950 NET CASH INFLOW/(OUTFLOW) FROM INVESTING ACTIVITIES

29,825 -25,200 -184 -25,000 -25,000 -25,000


Budget

$'000

Estimated Outcome

$'000

Budget

$'000

Var %

Estimate

$'000

Estimate

$'000

Estimate

$'000


Payments50,000 Payment of Dividend 50,000 0 -100 0 0 050,000 Financing Payments 50,000 0 -100 0 0 0


-50,000 0 100 0 0 0

4,326 NET INCREASE / (DECREASE) IN CASH AND CASH EQUIVALENTS

8,581 630 -93 569 830 -409


3,787 12,368 227 12,998 13,567 14,397


12,368 12,998 5 13,567 14,397 13,988

Notes to the controlled budget statements


Operating Statement

distribution from investments with the Territory Bank Account: the increase of $1.014 million in the 2016-17 estimated outcome from the original budget is mainly due to receiving a higher rate of return on investments than expected.

other gains:

- the increase of $1.5 million in the 2016-17 estimated outcome from the original budget is the result of an unrealised gain on investments due to an increase in the market value of the unit price of the Authority’s cash enhanced investment fund; and

- the decrease of $1.5 million in the 2017-18 Budget from the 2016-17 estimated outcome is due to unrealised gains from investments not being budgeted for in future years due to the volatility in the value of the unit price of investments.

other expenses:

- the increase of $4.205 million in the 2016-17 estimated outcome from the original budget is the result of an unrealised loss on investments due to a decrease in the market value of the unit price of the Authority’s fixed investment fund; and

- the decrease of $3.970 million in the 2017-18 Budget from the 2016-17 estimated outcome is due to unrealised losses from investments not being budgeted for in future years due to the volatility in the value of the unit price of investments.


claims expense:

- the decrease of $16.196 million in the 2016-17 estimated outcome from the original budget is due to the movement in actuarial forecasts for the Authority’s claims expense. The movement is due to a reduction in liabilities as the result of continued improvement in claims experience, in particular large claims in medical malpractice driven by decreasing numbers of reported large claims expected. Further to this, changes in the discount rate, inflation rate and expected payments verses actual payments have also reduced the claims liability; and

- the increase of $16.054 million in the 2017-18 Budget from the 2016-17 estimated outcome is due to the claims expense returning to normal actuarial calculated levels for the cost of future claims.

Balance Sheet

cash and cash equivalents: the increase of $6.802 million in the 2016-17 estimated outcome from the original budget is mainly due to the opening cash balance being higher than the previous budget, a decrease in workers’ compensation payments being made to Comcare and receiving higher distributions than expected from the previous financial year. These increases in cash are offset by higher than expected claim payments and less funds being withdrawn from investments.

current investments with the Territory Bank Account: the increase of $24.992 million in the 2017-18 budget from the 2016-17 estimated outcome is due to funds being invested from the Authority’s investing activities.

current payables: the increase of $8.164 million in the 2016-17 estimated outcome from the original budget is mainly due to an increase in workers’ compensation funds held on behalf of the ACT Government.

non-current payables: the decrease of $25.547 million in the 2016-17 estimated outcome from the original budget is due to a release of the provision for outstanding claims liabilities based on changes in actuarial assumption of the expected claim expenses in future years.

Statement of Changes in Equity

operating result:

- the increase of $16.244 million in the 2016-17 estimated outcome from the original budget is predominately due to an expected decrease in the Authority’s claims expenses that results from a reduction in the Authority’s expected outstanding claims liabilities; and

- the decrease of $14.626 million in the 2017-18 Budget from the 2016-17 estimated outcome is predominately due to the claims expense returning to normal actuarial calculated levels for the cost of future claims.

dividends – return of capital: the decrease of $50 million in the 2017-18 Budget from the 2016-17 estimated outcome is due to no further return of capital being forecasted in future years. This is consistent with the Authority’s Capital Management Plan.


Cash Flow Statement

distribution from investments with the Territory Bank Account:

- the increase of $5.413 million in the 2016-17 estimated outcome from the original budget is due to receiving a higher rate of return on investments receipted in July 2016 for the final quarter of distributions for 2015-16; and

- the decrease of $4.238 million in the 2017-18 Budget from the 2016-17 estimated outcome is due to expecting a lower rate of return on investments in 2017-18.

worker’s compensation receipts: the decrease of $22.467 million in the 2017-18 Budget from the 2016-17 estimated outcome is due to a decrease in the expected workers’ compensation premiums set by Comcare.

other receipts: the decrease of $4.921 million in the 2017-18 Budget from the 2016-17 estimated outcome is predominately due to a reduction in the GST collected as the result of a decrease in workers’ compensation receipts along with a reduction in the GST refund received from the Australian Taxation Office due to a decrease in the workers’ compensation premium paid to Comcare.

worker’s compensation payments:

- the decrease of $14.813 million in the 2016-17 estimated outcome from the original budget is due to a decrease in workers’ compensation premiums set by Comcare; and

- the decrease of $20.754 million in the 2017-18 Budget from the 201617 estimated outcome is due to further decreases expected in workers’ compensation premiums set by Comcare.

claims payments:

- the increase of $5.836 million in the 2016-17 estimated outcome from the original budget is due to actual claim payments being higher than expected during 2016-17; and

- the decrease of $4.549 million in the 2017-18 Budget from the 201617 estimated outcome is the result of the anticipated claims payments as valued by the Authority’s actuary.

other payments:

- the decrease of $3.151 million in the 2016-17 estimated outcome from the original budget is predominately due to a decrease in the GST paid on the workers’ compensation premium along with a decrease in GST paid to the Australia Taxation Office due to the reduction in the workers’ compensation receipts from agencies; and

- the decrease of $4.334 million in the 2017-18 Budget from the 201617 estimated outcome is predominately due to decreases in GST paid as the result of further decreases in workers’ compensation premiums.


proceeds from sale/maturity of investments: the decrease of $60 million in the 2017-18 Budget from the 2016-17 estimated outcome is predominately due to less funds being withdrawn from investments due to no further return of capital being forecasted.

purchase of investments: the decrease of $5 million in the 2017-18 Budget from the 201617 estimated outcome is due to less funds being transferred to investments.

payment of dividends: the decrease of $50 million in the 2017-18 Budget from the 201617 estimated outcome is due to no further return of capital being forecasted in future years, this is consistent with the Authority’s Capital Management Plan.


CANBERRA INSTITUTE OF TECHNOLOGY – STATEMENT OF INTENT

The Canberra Institute of Technology (CIT) is a Territory Authority established under the Canberra Institute of Technology Act 1987 (the Act).


The responsible Acting Minister, Andrew Barr MLA, was consulted during the preparation of the Statement of Intent.

The Statement of Intent, which focuses on the 2017-18 Budget year, has been developed in the context of a four year forward planning horizon to be incorporated, as far as practicable, into the CIT strategic and business planning processes.

The CIT 2017-18 Statement of Intent has been agreed between:

201718 Budget Statements 163 Canberra Institute of Technology

CANBERRA INSTITUTE OF TECHNOLOGY

PurposeThe major corporate objectives of CIT relevant to the Statement of Intent are:

to create a more agile CIT, able to effectively respond to rapidly changing circumstances, including financial circumstances, in the Vocational Education and Training (VET) and higher education markets;

to increasingly be the provider of choice for students, industry and government, locally, nationally and internationally;

to operate as a customer service oriented institute that meets the twin objectives of operating as a public provider of vocational education and training and operating with a greater commercial and entrepreneurial focus in an increasingly contestable training market place;

to provide high quality training in a variety of modes for students, government and industry;

to be the provider of choice for Canberra’s current and emerging businesses and current and prospective students;

to be the major contributor to ensuring the ACT has the skilled workforce required to support the ACT’s growing economy; and

to use financial practices which satisfy the requirements of the Financial Management Act 1996, including the associated Accounting Policy Papers, modelled on the requirements of Australian Accounting Standards, and which fairly present CIT’s financial position, operational and cash flow results for planning and reporting purposes.

Nature and Scope of Activities

General Activities

CIT has an important role in contributing to economic activity within the ACT by supplying employers with qualified skilled labour, increasing skill levels for those self-employed, contributing to participation levels and through attracting international students. Despite a high level of volatility within the national VET sector, the ACT Government continues to invest in CIT.


The CIT Board will continue to monitor the business development and transformative change process, started in 2016, so that CIT continues to be the major contributor to ensuring the ACT has the skilled workforce necessary to support current and emerging businesses. The Board is committed to CIT partnering with industry, business, education institutions and governments to create economic growth for the ACT and region, including partnerships with Canberra based companies and organisations competing successfully at the national level. Details of specific programs are in CIT Strategic Compass 2020 Evolving Together document.

Specifically, the CIT Board will collaborate with the Chief Minister, Treasury and Economic Development Directorate (CMTEDD) in the development of the course offerings and will consider ACT Government training priorities (including the ACT Skills Needs List) when proposing course offerings.

CIT’s mission is changing lives through quality education and skills development for individuals, industry and the community. CIT seeks to strengthen its position as a leader of vocational education and training and to be successful in a more demand driven market going forward.

CIT is committed to enriching learners with skills and knowledge for now and the future, cultivating our workforce to embody a culture of passion, innovation and high performance, and collaborating with industry, community and government to diversify and grow CIT partnerships and revenue sources.

Risks

Managing CIT risk is a key governance responsibility. This comprises the CIT Strategic Business Risk Profile, as well as prevention of fraud and corruption risk. Five categories have been identified for Strategic Business Risks.

Attractiveness and Competitiveness.

Sustainable Cost and Profitability.

Compliance with Quality Standards.

Protecting CIT Business and Community.

Ability and Willingness to Transform.

In 2016-17, progress reports show that many of CIT’s business risk ratings were significantly reduced as a result of successful controls and mitigating strategies, as well as continual reporting to the Executive Management Committee and the Audit, Risk and Finance Committee. The risks identified for both business and fraud and corruption link directly to the CIT Strategic Risk Environment Assessment Plan, which is continually reviewed to ensure CIT is addressing both strategic and any emerging risks. Identification of risk is also embedded in all CIT Business Plans.


CIT manages financial risks through a well-defined financial management framework that includes:

Clearly established ownership of internal budgets;

Monthly variance reporting by senior management;

Quarterly strategic review of financial performance and corrective action as required by the Executive;

Regularly updated financial policy, procedures and practice documents;

Access to training for all staff who have financial responsibilities; and

Continuous monitoring and review of process improvement.

CIT undertakes monthly reporting and analysis of its financial performance which assists in identifying and addressing any financial risks. CIT also undertakes monthly reporting and analysis of its annual performance measures as identified in the Statement of Intent and the ACT Government Budget. This process assists in identifying any performance risks. Financial, risk and performance reporting is provided to the CIT Board on a regular basis as part of the CIT’s governance arrangements.

A significant risk remains for 2017-18 in relation to the National Partnership Agreement (NPA) which expires in June 2017. A new agreement may have significant changes to CIT performance metrics, focus of resources and systems to support the replacement NPA.

2017-18 PrioritiesStrategic and operational initiatives to be pursued in 2017-18 include:

implementing the nine projects from the CIT Strategic Compass 2020 - Evolving Together;

strengthening our position as a leader of VET and to be successful in an increasingly competitive market;

modernising campuses, technology and systems including investing in a digital strategy and ensuring CIT systems are ‘fit for purpose’;

working to support the skill needs of the growing entrepreneurial culture in Canberra;

building on CIT’s reputation as a trusted quality provider of VET for those employers in the ACT seeking skilled workers and learners wishing to gain qualifications;

creating value by providing consistent, measurable service delivery that is relevant to current and emerging needs of the ACT economy;

improving access to supportive vocational education and training for disadvantaged social groups;


designing and implementing contemporary learning packages that meet market needs and improve online, blended and face-to-face service options for students and businesses, increase flexibility of how and where learning occurs and increase opportunities for lifelong learning and educational and employment pathways;

establishing new local, national and international markets to increase contestable revenue and to attract more international students to study in Canberra;

fostering innovation and building the CIT workforce to become more digitally and commercially capable and better able to understand the changing VET market;

continuing to develop critical skills training for the ACT and regional economy such as renewable energy sector, cyber security and health sectors; and

working in collaboration with business and industry and ACT Government agencies to support ACT Government policy goals.

CIT Training Profile and Associated Items

Contextual Framework

A well-educated community is the basis of Canberra’s social and economic wellbeing. There is a clear strategic link between VET and the economic and social development of the ACT.

The provision of VET through CIT is an important element in the ACT Government’s commitment to assist people of the ACT to be part of a well-trained and highly skilled workforce that will promote a strong and vibrant ACT economy. CIT’s delivery forms an integral component of the ACT’s VET commitment with a high percentage of ACT training funded through CIT.

Specification of Output

CIT will provide 3.263 million nominal hours in accordance with the CIT Training Profile, as outlined in the CIT Training Profile section.

Reporting Requirements

Reporting for all items relevant to CIT’s Training profile will be to the relevant standard set by the Commonwealth Department of Education and Training. This is the Australian Vocational Education and Training Management Information Statistical Standard (AVETMISS), or any other National Centre for Vocational Education Research (NCVER) standard, as required by CMTEDD. Variation from these standards can only occur by agreement with CMTEDD. CMTEDD will coordinate the reporting of financial data for the annual National VET Statistics Collection.


Monitoring and Reporting

Statistical Data

CIT will provide to CMTEDD statistical and other information to support the Directorate’s reporting requirements to the ACT Government and the Commonwealth Department of Education and Training, as well as supporting planning of VET within the ACT.

The AVETMISS compliant statistical information will be provided to NCVER (through CMTEDD) in accordance with the Commonwealth Department of Education and Training reporting requirements.

CIT agrees to provide validated data relating to the 2017 calendar year to CMTEDD a minimum of one week prior to the submission dates set by NCVER, which acts as the managing agent for the Department of Education and Training. CIT agrees to validate the data to ensure it is error-free prior to submission using the National AVETMISS audit compliance software AVETPAK. Up-to-date copies of AVETPAK are available on the NCVER website www.ncver.edu.au.

CIT provided the actual figures for 2016 in March 2017.

Implementation of Training Packages

Under national agreements, the ACT is committed to implementing Training Packages. CIT will comply with Clauses 1.26 and 1.27 of the Standards for Registered Training Organisations (RTOs) 2015 (Transition of training products).

CIT will comply with the Australian Skills Quality Authority’s (ASQA) general directions with regard to the implementation of training packages.

Estimated Employment Level and Employment Profile


2015-16Actual

Outcome

2016-17Budget


2017-18Budget

Staffing (FTE) 702 730 6931 688

Note(s):1. The decrease of 37 FTE in the 2016-17 estimated outcome from 2016-17 Budget is due fewer additional staff being

engaged as training demand has eased throughout the year.


http://www.ncver.edu.au/

Table 2: 2017-18 Employment Profile

Classification Male Female TotalTL1 131.8 113.6 245.4TL2 6.0 24.8 30.8ML1 8.0 22.8 30.8ML2 3.0 7.0 10.0SEL 0.0 1.0 1.0Casual Teacher 30.1 37.7 67.8ASO1 0.0 2.0 2.0ASO2 4.0 1.1 5.1ASO23 9.0 30.7 39.7ASO3 7.8 20.8 28.6ASO4 13.0 32.0 45.0ASO5 5.0 23.5 28.5ASO6 9.0 30.0 39.0CE 2.0 3.0 5.0CEO 0.0 1.0 1.0GSO2 1.2 1.6 2.8GSO3 2.0 2.0 4.0GSO4 1.0 0.0 1.0GSO5 3.0 1.0 4.0GSO6 2.0 0.0 2.0GSO8 2.0 0.0 2.0GSO9 1.0 0.0 1.0IT 0.0 0.0 0.0PAO1 0.0 1.0 1.0PAO2 1.0 2.8 3.8PAO3 0.0 1.0 1.0PO1 1.0 3.1 4.1PO2 3.8 7.6 11.4SOG A 4.0 7.4 11.4SOG B 4.3 4.0 8.3SOG C 7.7 15.6 23.3SPA1 0.0 0.0 0.0SPO B 0.0 0.0 0.0SPO.C 0.0 2.0 2.0STOC 1.0 0.0 1.0TO1 1.0 0.0 1.0TO2 2.0 1.8 3.8TO3 10.1 2.3 12.4TO4 2.0 0.0 2.0TOS 2.0 3.0 5.0Total 280.8 407.2 688.0




Student Outcomes

CIT’s objective is to provide training that meets student needs.

Strategic Indicator 1: Student Outcomes Survey

The key strategic indicator used by CIT to measure its success is students’ employment outcomes as measured through the annual Student Outcomes Survey. By focusing on students’ employment outcomes and satisfaction with VET, the Student Outcomes Survey gauges how well CIT serves individuals and the community.

Quality and effectiveness can be measured through student outcomes against national performance. When compared against national TAFE performance, CIT students consistently achieve high levels of employment or are undertaking further study after training. The 2016 performance of CIT graduates against national performance for Australian TAFE Graduates is highlighted in the table below. CIT graduates are shown in grey and have exceeded the national performance on virtually all measures indicating a strong performance across all strategic indicators.

Figure 1: VET Graduate Outcomes, 2016


Output Classes

Output Class 1: Canberra Institute of Technology

Table 3: Output Class 1: Canberra Institute of Technology


$'000 $'000



Output 1.1: Provision of Vocational Education and Training Services

This output involves the provision of places in publicly funded programs at CIT, consistent with training needs identified in the CIT Training Profile section.

Table 4: Output 1.1: Provision of Vocational Education and Training Services


$'000 $'000



Output Class 1: Canberra Institute of Technology

Output 1.1: Provision of Vocational Education and Training Services


2016-17Targets


2017-18Targets

a. Nominal Hours 3,301,000 3,069,000 3,229,000b. Achieve key output targets:

- Program Enrolments 13,600 12,200 13,300- Module Pass Rates 75% 80% 75%- Program Completions 5,600 5,400 5,500- Learner Satisfaction Rate 85% 92% 85%- Employer Satisfaction Rate 80% 85% 80%

c. Average Government Payment per Nominal Hour $21.07 $22.69 $21.96


Key Performance Indicators for 2017 CIT’s strategic and accountability indicators can be found in the above.

The figures shown in the following table represent calendar year information consistent with CIT’s annual reporting cycle.


2016Targets

2016Outcome

2017Targets

a. Nominal Hours 3,367,000 2,837,338 3,263,000b. Achieve key output targets:

- Program Enrolments 13,800 10,910 13,400- Module Pass Rates1 75% 80% 75%- Program Completions1 5,700 5,193 5,600- Learner Satisfaction Rate2 85% 92% 85%- Employer Satisfaction Rate2 80% 85% 80%

c. Average Government Payment per Nominal Hour $20.76 $24.65 $21.46

Note(s):1,2. Notes 1 and 2 are provided under the heading Assessment of Performance Against 2016-17 Objectives on the

following page of this document.

Performance Measure Definitions Nominal Hours is the nationally accepted quantitative output measure for the VET

sector. It measures the anticipated hours of supervised learning or training provided by CIT to adequately present the educational material associated with the delivery and assessment of a program of study. It also includes student contact hours delivered through a recognition of prior learning process. Nominal Hours includes Paid and Non-Paid Nominal Hours and excludes any Nominal Hours relating to students with Withdrawal – Without attendance grade.

Output targets are as specified below noting that ‘Profile’ relates to training activities that are funded directly by the ACT Government appropriation for the provision of public access VET. These are:

- the number of records of students completing program enrolment requirements in accordance with AVETMISS;

- the proportion of successful module (subject) outcomes compared to module enrolments weighted by Nominal Hours in accordance with the national AVETMIS Standard;

- the number of student records where program completion requirements have been met in accordance with the AVETMIS Standard for students completing study in the previous academic year(s). This measure does not include completions for non-accredited training such as Adult Community Education (ACE) programs;


- learner satisfaction rates measure the proportion of current students who indicated that they were satisfied with the training they received at CIT. The learner survey has been designed by the Australian Council for Educational Research (ACER) to collect data relating to the Australian Quality Training Framework (AQTF) quality indicator (QI) ‘Learner Satisfaction’; and

- employer satisfaction rates measure the proportion of employers indicating that they were satisfied with training provided at CIT. The Employer Survey has been designed by the ACER to collect data relating to the AQTF QIs and Employer Satisfaction.

The Average Government Payment per Nominal Hour is an output target calculated as the Total Government Payment for Outputs divided by the Nominal Hours outcome for training programs delivered under the CIT’s training profile.

Assessment of Performance Against 2016-17 ObjectivesNote 1: Program completions and module pass rates are above target due to CIT’s continued focus on high-quality and relevant training and support for CIT’s students, as reflected in CIT’s 2016 Learner Engagement Survey results.

Note 2: The 2016 surveys of learner engagement and employer satisfaction showed overall levels of satisfaction with the training of 92 and 85 per cent respectively, reflecting employers’ and students’ positive view of their experience of CIT training. Learner Satisfaction Rate results were based on the survey of students enrolled in nationally accredited programs. CIT has continued to actively improve its effectiveness and responsiveness in skilling students with contemporary training methods, which have been very positively received by industry and students alike.




$'000

2017-18 Budget

$'000

2018-19 Estimate

$'000

2019-20 Estimate

$'000

2020-21 Estimate

$'000

2016-17 Budget 69,559 70,438 71,851 73,371 73,371

2017-18 Budget Technical AdjustmentsRevised Supperannnuation Parameters - 593 489 345 252Revised Indexation Parameters - (104) (160) (164) 1,055Commonwealth Grants – National Skills and

Workforce Development SPP64 (14) (37) (55) 153

Commonwealth Grants – TAFE Fee Waivers for Childcare Qualifications NP

10 - - - -

2017-18 Budget 69,633 70,913 72,143 73,497 74,831




$'000

2017-18 Budget

$'000

2018-19 Estimate

$'000

2019-20 Estimate

$'000

2020-21 Estimate

$'000

2016-17 Budget 5,635 3,899 3,965 4,033 4,033

2017-18 Budget Technical AdjustmentsRevised Indexation Parameters - - - - 69Revised Funding Profile – Better Infrastructure

Fund(893) 893 - - -

2017-18 Budget 4,742 4,792 3,965 4,033 4,102

Monitoring and ReportingCIT shall satisfy the requirements of the Chief Minister’s Annual Reports Directions. CIT’s Annual Report will, amongst other things, report against the requirements of this Statement of Intent.

The Financial Management Act 1996 authorises the Treasurer to obtain financial and other statements from CIT for a stated period including annual, quarterly and monthly reporting.

Quarterly Reporting

To enable consolidated whole of Government reporting requirements to be met on a quarterly basis, CIT will ensure the availability to the Treasurer, through CMTEDD (by the eighth working day of each quarter, unless otherwise indicated), information, in the prescribed form and detail, in respect of the previous quarter:


Balance Sheet;


Cash Flow Statement;

Operating Statement material variance explanations against seasonal budget provided by CIT;

Status Report to supplement performance reporting to the Assembly and provide stakeholders with a summary on progress against budget highlights, significant initiatives and major projects (by the tenth working day of each quarter); and

Management Discussion and Analysis of results to date, forecast results and related issues that may impact on the financial condition of the CIT (by the tenth working day of each quarter).


Monthly Reporting

In addition to the quarterly information required as identified above, on a monthly basis the CIT will ensure the availability to the Treasurer through CMTEDD (by the eighth working day of each month) the financial statements, in the prescribed form and required detail, in respect of the previous calendar month.

Annual Reporting

As part of preparations for end of year reporting, CMTEDD will advise the dates when the following documents are required at the CMTEDD and at the Auditor-General's Office:

Certified financial statements;

Management discussion and analysis;

A full and accurate set of audited financial records for the preceding financial year in the form requested; and

Consolidation packs relating to the annual financial statements, draft and final.

Financial Arrangements

Financial Performance Targets

CIT undertakes to assess financial performance against the achievement or otherwise of the financial performance measures at the Key Performance Indicators for 2017-18 to 2020-21 section of this Statement of Intent.

Budget Variations

Any variations from the 2017-18 Budget, including calls on the Treasurer’s Advance, will be considered in the context of end of year cash requirements, unless the relevant legal appropriation is first exhausted. CIT will manage within existing funding sources until this time.

Sustaining Public Funds and Operating Surplus/Loss

CIT will manage its resources to ensure it achieves the planned financial position at the end of each year, as set out in the Statement of Intent.

Capital Structure

The Statement of Intent covers the capital employed by CIT. Any capital injections will be subject to an agreed business case. Capital employed can be either an injection of equity or a repayable advance (debt capital) in accordance with terms and conditions determined by the Treasurer. The business case will cover the budget year in detail and the three forward years in outline.


A targeted level of capital employed necessary for the budgeted level of service delivery and financial stability of CIT is reflected in the attached budgeted statements of financial position.

Budgeted cash equity capital injections (or distributions) will be payable at the end of the relevant financial year and will be determined in the context of the budgeted and actual year-end balance sheet position, including cash and other assets. CIT will meet funding needs during the year through prudent management of its funding sources and options, including operational receipts and finance facilities.

Agreement to asset acquisition and disposal is separate from the issue of the appropriate capital position of CIT. Any decision to provide added capital or return funds to the Territory as a result of asset acquisition or disposal will be based on an assessment of CIT’s balance sheet, including capital position, in light of the proposed action.

All transfers of fixed assets between ACT agencies will be the subject of a formal agreement between the gaining and losing agencies in relation to timing and valuation of the assets.

A copy of the agreement must be distributed immediately to the Chief Minister and Treasury Directorate as part of normal monthly reporting arrangements when an agreement has been reached. The maximum timeframe to reach an agreement is six weeks.

Subsidiaries

CIT Solutions Pty Limited (CIT Solutions) is wholly owned by CIT. The company reports to the Australian Securities and Investments Commission in accordance with the Corporations Act 2001. The company’s audited financial statements are consolidated within the CIT’s financial statements on a calendar year basis.

CIT Solutions offers a range of educational activities and services, which reflect the resource capability of CIT. These include customised training programs for commercial clients, study tours for groups from overseas and educational and specialist consultancies. The company is also a major provider of adult and community education programs in the ACT and region.

CIT Solutions will also provide quarterly financial statements to the Chief Minister and Treasury Directorate as part of the company’s quarterly and annual ownership reporting requirements.



Balance Sheet;


Cash Flow Statement; and


Notes to the Financial Statements as appropriate.

Financial Statements

Table 9: Canberra Institute of Technology: Operating Statement

2016-17 Budget

$'000


$'000

2017-18 Budget

$'000

Var%

2018-19 Estimate

$'000

2019-20 Estimate

$'000

2020-21 Estimate

$'000

Income


Payments69,633 70,913 2 72,143 73,497 74,831

30,458 User Charges 34,437 33,204 -4 33,086 33,699 34,380263 Interest 263 263 - 263 263 263500 Dividend Revenue 500 500 - 500 500 500


35 35 - 35 35 35

2,265 Other Revenue 2,044 2,138 5 2,217 2,272 2,326

103,080 Total Revenue 106,912 107,053 .. 108,244 110,266 112,335


64 Total Gains 64 64 - 64 64 64

103,144 Total Income 106,976 107,117 .. 108,308 110,330 112,399


8,706 Superannuation Expenses 8,706 9,454 9 9,472 9,493 9,51830,547 Supplies and Services 33,459 32,248 -4 32,427 33,669 34,772


8,792 8,485 -3 8,462 8,462 8,462

357 Other Expenses 374 379 1 387 395 404

111,338 Total Expenses 114,085 114,690 1 115,679 117,802 119,793


-2,101 Other Comprehensive Income1012,1012,101Items that will not be Reclassified Subsequently to Profit or Loss

-2,101 Increase/(Decrease) in Asset Revaluation Surplus

-2,101 -2,101 - -2,101 -2,101 -2,101

-2,101 Total Other Comprehensive Income

-2,101 -2,101 - -2,101 -2,101 -2,101


-9,210 -9,674 -5 -9,472 -9,573 -9,495


Table 10: Canberra Institute of Technology: Balance Sheet

Budgetat

30/6/17 $'000

Est.Outcome as at

30/6/17 $'000

Budgetat

30/6/18 $'000

Var%

Estimateat

30/6/19 $'000

Estimateat

30/6/20 $'000

Estimateat

30/6/21 $'000

Current Assets9,104 Cash and Cash Equivalents 13,003 13,985 8 15,146 16,206 17,3443,000 Investments 3,000 3,000 - 3,000 3,000 3,0005,798 Receivables 5,461 5,486 .. 5,511 5,536 5,561

118 Capital Works in Progress 3 6 100 10 13 16549 Other Assets 569 569 - 569 569 569


Non Current Assets20 Investments 20 20 - 20 20 20

177,861 Property, Plant and Equipment

179,188 172,926 -3 166,664 160,402 154,140

589 Intangible Assets 1,205 1,182 -2 1,182 1,182 1,1824,124 Capital Works in Progress 3,231 4,248 31 4,437 4,695 5,022


201,163 TOTAL ASSETS 205,680 201,422 -2 196,539 191,623 186,854


18,334 Employee Benefits 18,263 18,690 2 19,117 19,544 19,9718,360 Other Liabilities 10,450 10,504 1 10,558 10,612 10,666


Non Current Liabilities1,276 Employee Benefits 1,007 1,115 11 1,223 1,331 1,439



171,679 NET ASSETS 172,299 167,417 -3 161,910 156,370 150,977


102,566 Accumulated Funds 101,085 98,304 -3 94,898 91,459 88,16769,113 Asset Revaluation Surplus 71,214 69,113 -3 67,012 64,911 62,810



Table 11: Canberra Institute of Technology: Statement of Changes in Equity

Budgetat

30/6/17 $'000

Est.Outcome as at

30/6/17 $'000

Budgetat

30/6/18 $'000

Var%

Estimateat

30/6/19 $'000

Estimateat

30/6/20 $'000

Estimateat

30/6/21 $'000



73,315 71,214 -3 69,113 67,012 64,911


176,767 172,299 -3 167,417 161,910 156,370


Economic Flows-7,109 -7,573 -7 -7,371 -7,472 -7,394

-2,101 Inc/Dec in Asset Revaluation Reserve Surpluses

-2,101 -2,101 - -2,101 -2,101 -2,101


-9,210 -9,674 -5 -9,472 -9,573 -9,495



5,635 Total Transactions Involving Owners Affecting Accumulated Funds

4,742 4,792 1 3,965 4,033 4,102

Closing Equity102,566 Closing Accumulated Funds 101,085 98,304 -3 94,898 91,459 88,167


71,214 69,113 -3 67,012 64,911 62,810


172,299 167,417 -3 161,910 156,370 150,977


Table 12: Canberra Institute of Technology: Cash Flow Statement

2016-17 Budget

$'000


$'000

2017-18 Budget

$'000

Var %

2018-19 Estimate

$'000

2019-20 Estimate

$'000

2020-21 Estimate

$'000



69,633 70,913 2 72,143 73,497 74,831

30,582 User Charges 36,036 32,920 9 32,878 33,544 34,225263 Interest Received 263 263 - 263 263 263500 Dividends 1,000 500 -50 500 500 500

6,453 Other 9,257 6,759 -27 6,762 6,764 6,818107,357 Operating Receipts 116,189 111,355 -4 112,546 114,568 116,637


8,706 Superannuation 8,706 9,454 9 9,472 9,493 9,51830,295 Supplies and Services 33,207 31,996 -4 32,175 33,417 34,520

4,812 Other 4,829 4,834 .. 4,842 4,850 4,859106,160 Operating Payments 109,992 109,873 .. 110,885 113,008 114,999


6,197 1,482 -76 1,661 1,560 1,638



and Equipment5,217 5,292 1 4,465 4,533 4,602



-5,217 -5,292 -1 -4,465 -4,533 -4,602

2016-17 Budget

$'000


$'000

2017-18 Budget

$'000

Var %

2018-19 Estimate

$'000

2019-20 Estimate

$'000

2020-21 Estimate

$'000


5,635 Capital Injections 4,742 4,792 1 3,965 4,033 4,102

5,635 Financing Receipts 4,742 4,792 1 3,965 4,033 4,102


4,742 4,792 1 3,965 4,033 4,102



5,722 982 -83 1,161 1,060 1,138


7,281 13,003 79 13,985 15,146 16,206


13,003 13,985 8 15,146 16,206 17,344



Operating Statement

controlled recurrent payments: the increase of $1.280 million in the 2017-18 Budget from the 2016-17 estimated outcome is mainly due to increased revenue provided to CIT to fund the increased superannuation expenses as a result of a change in the staff numbers in the various funds.

user charges:

- the increase of $3.979 million in the 2016-17 estimated outcome from the original budget is mainly due to one off project funding received from Skills Canberra for the Strategic Compass 2020 Evolving Together Projects; and

- the decrease of $1.233 million in the 2017-18 Budget from the 2016-17 estimated outcome is mainly due to the cessation of project funding, partially offset by the annual indexation increase of fees and charges.

employee expenses: the increase of $1.370 million in the 2017-18 Budget from the 2016-17 estimated outcome is mainly due to a change in the discount factor used to calculate Long Service Leave expenses in December 2016 which decreased the 2016-17 estimated outcome. The flow-on effect is an increase in the 2017-18 Budget due to comparison against a lower base in 2016-17 estimated outcome.

superannuation expenses: the increase of $0.748 million in the 2017-18 Budget from the 2016-17 estimated outcome is due to a change in the staff numbers in the various funds.

supplies and services:

- the increase of $2.912 million in the 2016-17 estimated outcome from the original budget is mainly due to expenses relating to the Strategic Compass 2020 Evolving Together Projects; and

- the decrease of $1.211 million in the 2017-18 Budget from the 2016-17 estimated outcome is mainly due to the higher non-going project expenses in 2016-17 estimated outcome.


Balance Sheet

cash and cash equivalents: the increase of $3.899 million in the 2016-17 estimated outcome from the original budget is mainly due to one off lump sum payments received from Skills Canberra to fund the Strategic Compass 2020 Evolving Together Projects.

property, plant and equipment:

- the increase of $1.327 million in the 2016-17 estimated outcome from the original budget is mainly due to completion of Capital Upgrades Projects during the year; and

- the decrease of $6.262 million in the 2017-18 Budget from the 2016-17 estimated outcome is mainly due to the asset depreciation outpacing the addition of new assets.

payables: the increase of $2.147 million in the 2016-17 estimated outcome from the original budget is mainly due to an approximation for invoices received at the end of the financial year which will not be processed in time.

other liabilities: the increase of $2.090 million in the 2016-17 estimated outcome from the original budget is mainly due to higher anticipated revenue in advance received relating to student fees and project work.




Calendar Year Financial Statements

Table 13: Canberra Institute of Technology: Operating Statement for the year ended 31 December 2016

Actual Budget Budget2016 2016 2017

$'000 $'000 $'000

INCOME

RevenueControlled Recurrent Payments 69,939 69,909 70,023User Charges - ACT Government 7,817 9,780 6,698User Charges - Non-ACT Government 24,956 23,440 23,602Government Grants 6,731 100 1,931Interest 308 230 300Resources Received Free of Charge 79 35 35Other Revenue 610 1,600 600Total Revenue 110,440 105,094 103,189

GainsOther Gains 43 0 0Contributions from CIT Solutions Pty Limited 1,000 500 500Total Gains 1,043 500 500

Total Income 111,483 105,594 103,689

EXPENSESEmployee Expenses 59,720 60,847 60,739Superannuation Expenses 8,519 7,813 8,743Supplies and Services 33,487 33,693 37,650Depreciation and Amortisation 8,420 8,807 8,196Other Expenses 2,076 2,200 2,090Total Expenses 112,222 113,360 117,418

Operating (Deficit) -739 -7,766 -13,729

Table 14: Canberra Institute of Technology: Balance Sheet for the year ended 31 December 2016


$'000 $'000 $'000

CURRENT ASSETSCash and Cash Equivalents 15,399 5,675 9,478Receivables 3,596 2,500 2,900


Other Assets 2,004 1,850 1,900Total Current Assets 20,999 10,025 14,278

NON-CURRENT ASSETSInvestments 20 20 20Property, Plant and Equipment 183,559 183,758 178,636Intangible Assets 1,252 1,500 1,194Capital Works in Progress 2,522 2,695 2,440Total Non-Current Assets 187,353 187,973 182,290

Total Assets 208,352 197,998 196,568

CURRENT LIABILITIESPayables 4,313 1,500 2,061Employee Benefits 19,207 17,200 18,477Other 2,767 3,300 3,000Total Current Liabilities 26,287 22,000 23,538

NON-CURRENT LIABILITIESEmployee Benefits 947 1,196 1,061Total Non-Current Liabilities 947 1,196 1,061

Total Liabilities 27,234 23,196 24,599

NET ASSETS 181,118 174,802 171,969

EQUITY Accumulated Funds 107,881 101,565 98,732Asset Revaluation Reserve 73,237 73,237 73,237TOTAL EQUITY 181,118 174,802 171,969

Table 15: Canberra Institute of Technology: Statement of Changes for the year ended31 December 2016


$'000 $'000 $'000

Opening Balance 171,896 171,896 181,118

Decrease in Liabilities from Administrative RestructuringOperating (Deficit) -739 -7,766 -13,729

Decrease in Asset Revaluation Reserve

Transfer to Reserve

Capital Injection 9,961 10,673 4,580

Closing Balance 181,118 174,803 171,969


Table 16: Canberra Institute of Technology: Cash Flow Statement for the year ended31 December 2016


$'000 $'000 $'000

CASH FLOWS FROM OPERATING ACTIVITIESReceiptsControlled Recurrent Payments 69,939 69,909 70,023User Charges - ACT Government 7,202 9,780 6,698User Charges - Non-ACT Government 24,081 24,346 24,298Interest Received from Bank 308 230 300Goods and Services Tax Input Tax Credits from the Australian Taxation Office 2,483 0 2,200Goods and Services Tax Collected from Customers 1,418 0 1,500Government Grants 4,486 100 1,931Other 610 4,900 700Contributions 1,000 500 500Total Receipts from Operating Activities 111,527 109,765 108,150

PaymentsRelated to Employee 58,651 62,793 60,739Related to Superannuation 8,518 7,813 8,743Related to Supplies and Services 31,094 35,993 39,240Goods and Services Tax paid to Suppliers 3,481 0 3,650Other 1,992 4,811 1,700Total Payments from Operating Activities 103,736 111,410 114,072

Net Cash Inflow (Outflows) from Operating Activities 7,791 (1,645) (5,922)


ReceiptsProceeds from Sale of Property, Plant & Equiptment 43 0 0Total Receipts from Investing Activities 43 0 0

PaymentsPurchase of Property, Plant & Equipment 9,714 10,673 4,580Total Payments from Investing Activities 9,714 10,673 4,580

Net Cash (Outflows) from Investing Activities (9,671) (10,673) (4,580)


ReceiptsCapital Contributions from Government (not operations) 9,961 10,673 4,580Total Receipts from Financing Activities 9,961 10,673 4,580

Net Cash Inflows from Financing Activities 9,961 10,673 4,580

Net Increase / (Decrease) in Cash Held 8,081 (1,645) (5,921)

Cash and Cash Equivalents at the Beginning of the Reporting Period 7,318 7,320 15,399

Cash and Cash Equivalents at the End of the Reporting Period 15,399 5,675 9,478


Table 17: CIT Training Profile

Program Budget Targets (Nominal

Hours - NH) 2016 2017

AD-BC01 Advanced Diploma of Business 13,040 15,000AD-BC08 Advanced Diploma of Management - Not applicable in 2017 5,430 0AD-BC13 Advanced Diploma of Management (Human Resources) 9,950 16,000AD-BC16 Advanced Diploma of Project Management - Not applicable in 2017 1,500 0AD-BD03 Advanced Diploma of Interior Design 36,000 25,000AD-BD05 Advanced Diploma of Screen and Media 10,000 6,000AD-BD06 Advanced Diploma of Music 2,500 0AD-BD07 Advanced Diploma of Sound Production 3,500 0AD-BE49 Advanced Diploma of Spatial Information Services 1,100 0AD-BT05 Advanced Diploma of Accounting 13,610 10,500AD-BT06 Advanced Diploma of Leadership and Management 0 17,000AD-CI07 Advanced Diploma of Journalism 500 0AD-CI08 Advanced Diploma of Public Relations 500 0AD-EE06 Advanced Diploma of Adult Learning and Development 6,000 6,000AD-FE02 Advanced Diploma of Forensic Science (Crime Scene Investigation) 880 440AD-FE03 Advanced Diploma of Engineering Design 3,000 0AD-FE16 Advanced Diploma of Forensic Science (Document Examination) 200 0AD-FE29 Advanced Diploma of Public Safety (Fire Investigation) 13,000 15,000AD-HC29 Advanced Diploma of Health Science (Soft-Tissue Therapy) 8,000 4,080AD-HC44 Advanced Diploma of Community Sector Management 10,000 0AD-TH38 Advanced Diploma of Hospitality - teach out in 2017 1,220 1,000AD-TH39 Advanced Diploma of Travel and Tourism - teach out in 2017 1,390 4,000AD-TH43 Advanced Diploma of Events - teach out in 2017 7,980 6,000C1-CM01 Certificate I in Spoken and Written English 4,000 0C1-IT05 Certificate I in Information, Digital Media and Technology 1,000 0C1-VO44 Certificate I in Access to Vocational Pathways 11,000 5,500C1-VO45 Certificate I in Skills for Vocational Pathways 20,000 14,000C1-YC03 Certificate I in Aboriginal or Torres Strait Islander Cultural Arts 7,000 0C1-YC05 Certificate I in Skills for Vocational Pathways 600 0C1-YC06 Certificate I in Access to Vocational Pathways 3,445 0C1-YC08 Certificate I in General Education for Adults (Introductory) 0 400C2-BC33 Certificate II in Business 25,590 30,000C2-BE29 Certificate II in Parks and Gardens 1,200 0C2-BE35 Certificate II in Floristry (Assistant) 10,000 0C2-BE50 Certificate II in Spatial 0 2,000C2-CM01 Certificate II in Spoken and Written English 8,000 4,000C2-FE27 Certificate II in Electronics 700 2,400C2-IT05 Certificate II in Information, Digital Media and Technology 10,000 200C2-TC31 Certificate II in Electrotechnology (Career Start) 2,000 4,000C2-TC32 Certificate II in Split Air-conditioning and Heat Pump Systems 3,000 3,700C2-TC33 Certificate II in Automotive Air Conditioning Technology 2,000 5,000C2-TC34 Certificate II in Automotive Servicing Technology 500 500C2-TH18 Certificate II in Hairdressing 2,500 0C2-TH40 Certificate II in Kitchen Operations 3,600 0C2-TS02 Certificate II in Drainage 0 284C2-TS08 Certificate II in General Education for Adults 27,500 20,000C2-VO45 Certificate II in Skills for Work and Vocational Pathways 30,000 45,000C2-YC02 Certificate II in Access10 2,500 0C2-YC03 Certificate II in Aboriginal or Torres Strait Islander Cultural Arts 300 4,000C2-YC05 Certificate II in Skills for Work and Vocational Pathways 100 0C2-YC07 Certificate II in General Education for Adults 3,000 6,045C3-2J103 Certificate III in Engineering - Fabrication Trade 28,000 28,000C3-2J64 Certificate III in Horticulture (Turf) 200 0C3-BC06 Certificate III in Recordkeeping - Not applicable in 2017 2,000 0C3-BC29 Certificate III in Accounts Administration 56,400 61,000C3-BC33 Certificate III in Business 16,040 17,000C3-BC34 Certificate III in Business Administration 81,470 89,000



Hours - NH) 2016 2017

C3-BC36 Certificate III in Business Administration (Legal) 2,500 4,900C3-BC37 Certificate III in Business Administration (Medical) 4,540 5,000C3-BD05 Certificate III in Media 12,000 0C3-BD06 Certificate III in Music 12,100 0C3-BD09 Certificate III in Technical Production 10,110 0C3-BD15 Certificate III in Make-Up 21,000 14,700C3-BD18 Certificate III in Library and Information Services 0 9,780C3-BD19 Certificate III in Music Industry 0 16,780C3-BD21 Certificate III in Screen and Media 0 14,280C3-BD24 Certificate III in Hairdressing 7,000 5,000C3-BD25 Certificate III in Barbering 0 1,780C3-BE27 Certificate III in Horticulture 20,000 36,580C3-BE28 Certificate III in Arboriculture 6,000 3,000C3-BE29 Certificate III in Parks and Gardens 7,000 8,280C3-BE30 Certificate III in Production Nursery 7,000 0C3-BE31 Certificate III in Sports Turf Management 3,000 3,500C3-BE32 Certificate III in Conservation and Land Management 8,000 10,800C3-BE34 Certificate III in Landscape Construction 20,000 20,640C3-BE35 Certificate III in Floristry 8,000 15,000C3-BE37 Certificate III in Carpentry 27,100 27,100C3-BE38 Certificate III in Painting and Decorating 3,500 3,500C3-BE39 Certificate III in Solid Plastering 1,500 1,000C3-BE40 Certificate III in Wall and Ceiling Lining 4,200 3,500C3-BE41 Certificate III in Wall and Floor Tiling 6,500 7,200C3-BE50 Certificate III in Surveying and Spatial Information Services 9,000 7,500C3-CI01 Certificate III in Clothing Production 22,000 10,500C3-CI25 Certificate III in Design Fundamentals 5,000 2,000C3-CM01 Certificate III in Spoken and Written English 13,000 25,500C3-FE12 Certificate III in Laboratory Skills 16,000 16,000C3-FE18 Certificate III in Companion Animal Services 35,000 35,000C3-FE27 Certificate III in Electronics and Communications 5,000 6,500C3-HC42 Certificate III in Community Services Work 69,360 0C3-HC47 Certificate III in Dental Assisting 6,000 0C3-HC51 Certificate III in Pathology 8,000 0C3-HC53 Certificate III in Population Health 20,000 0C3-HC56 Certificate III in Early Childhood Education and Care 92,000 97,000C3-HC57 Certificate III in Education Support 33,000 28,000C3-HS05 Certificate III in Fitness 77,750 0C3-HS08 Certificate III in Community Services 0 85,000C3-HS14 Certificate III in Individual Support (Ageing) 20,000 25,000C3-HS15 Certificate III in Individual Support (Disability) 12,500 20,000C3-HS16 Certificate III in Individual Support (Home and Community) 9,530 6,000C3-HS19 Certificate III in Fitness (Gym Instructor) 0 75,000C3-HS23 Certificate III in Population Health 0 11,800C3-HS24 Certificate III in Dental Assisting 0 15,125C3-IT05 Certificate III in Information, Digital Media and Technology 100,000 91,000C3-IT21 Certificate III in Information and Cultural Services 12,500 0C3-TC19 Certificate III in Civil Construction Plant Operations 30,000 0C3-TC30 Certificate III in Air-conditioning and Refrigeration 9,000 13,000C3-TC31 Certificate III in Electrotechnology Electrician 25,000 28,000C3-TC35 Certificate III in Automotive Body Repair Technology 4,000 5,000C3-TC36 Certificate III in Automotive Electrical Technology 2,500 4,000C3-TC37 Certificate III in Light Vehicle Mechanical Technology 8,000 5,000C3-TC38 Certificate III in Motorcycle Mechanical Technology 1,000 600C3-TC40 Certificate III in Mobile Plant Technology 4,000 3,500C3-TC42 Certificate III in Automotive Refinishing Technology 5,000 4,000C3-TC44 Certificate III in Engineering - Mechanical Trade 6,000 3,280C3-TH14 Certificate III in Retail Baking (Cake and Pastry) 750 0C3-TH15 Certificate III in Retail Baking (Bread) 2,000 1,500



Hours - NH) 2016 2017

C3-TH16 Certificate III in Retail Baking (Combined) 3,300 2,000C3-TH38 Certificate III in Hospitality 25,630 17,000C3-TH43 Certificate III in Events 15,150 13,000C3-TH44 Certificate III in Travel 24,700 18,000C3-TH45 Certificate III in Meat Processing (Retail Butcher) 3,300 1,500C3-TS01 Certificate III in Plumbing 35,000 40,200C3-TS03 Certificate III in Roof Plumbing 4,500 1,852C3-TS04 Certificate III in Commercial Cookery 33,000 38,000C3-TS05 Certificate III in Patisserie 15,500 15,000C3-TS06 Certificate III in Cabinet Making 20,000 22,000C3-TS07 Certificate III in Glass and Glazing 6,200 6,200C3-TS09 Certificate III in Heavy Commercial Vehicle Mechanical Technology 11,000 13,000C3-YC03 Certificate III in Aboriginal or Torres Strait Islander Cultural Arts 1,900 0C3-YC09 Certificate III in Community Services 0 775C3-YCXX Certificate III in General Education for Adults 0 980C4-BC02 Certificate IV in Business Administration 16,850 22,000C4-BC06 Certificate IV in Recordkeeping - Not applicable in 2017 2,000 0C4-BC09 Certificate IV in Small Business Management 5,570 17,000C4-BC15 Certificate IV in Marketing - Not applicable in 2017 4,880 0C4-BC25 Certificate IV in Legal Services 12,790 7,200C4-BC29 Certificate IV in Accounting 35,280 0C4-BC30 Certificate IV in Bookkeeping 16,840 17,000C4-BC33 Certificate IV in Business 12,260 15,000C4-BC38 Certificate IV in Frontline Management - Not applicable in 2017 9,020 0C4-BC42 Certificate IV in Human Resources 12,990 12,000C4-BD03 Certificate IV in Interior Decoration 16,500 18,000C4-BD05 Certificate IV in Screen and Media 8,000 10,000C4-BD06 Certificate IV in Music 14,000 0C4-BD07 Certificate IV in Sound Production 12,000 0C4-BD08 Certificate IV in Music Business 3,500 0C4-BD10 Certificate IV in Interactive Digital Media 2,000 0C4-BD19 Certificate IV in Music Industry 0 20,000C4-BE22 Certificate IV in Building and Construction (Building) 43,000 36,850C4-BE43 Certificate IV in Building and Construction (Contract Administration) 1,500 2,000C4-BE44 Certificate IV in Building and Construction (Site Management) 1,500 1,000C4-BE45 Certificate IV in Building and Construction (Estimating) 2,000 1,000C4-BE49 Certificate IV in Spatial Information Services 5,000 2,000C4-BE50 Certificate IV in Surveying 9,000 6,000C4-BE51 Certificate IV in Environmental Monitoring and Technology 9,000 8,000C4-BT05 Certificate IV in Accounting 0 35,000C4-BT06 Certificate IV in Leadership and Management 0 14,000C4-CI02 Certificate IV in Applied Fashion Design and Technology 5,000 250C4-CI07 Certificate IV in Professional Communication 2,000 0C4-CI23 Certificate IV in Visual Arts 38,000 22,000C4-CI24 Certificate IV in Photo Imaging 28,000 28,780C4-CM01 Certificate IV in Spoken and Written English - Employment 18,250 0C4-CM02 Certificate IV in Spoken and Written English - Further Studies 21,500 34,500C4-EE03 Certificate IV in Training and Assessment 25,000 22,000C4-FE12 Certificate IV in Laboratory Techniques 3,000 3,000C4-FE28 Certificate IV in Veterinary Nursing 35,000 30,000C4-HC10 Certificate IV in Community Services Work 15,000 0C4-HC12 Certificate IV in Community Development 3,000 0C4-HC14 Certificate IV in Aged Care 5,000 0C4-HC32 Certificate IV in Disability 6,000 0C4-HC40 Certificate IV in Alcohol and Other Drugs 15,000 0C4-HC41 Certificate IV in Mental Health 19,230 0C4-HC47 Certificate IV in Dental Assisting 7,000 0C4-HC49 Certificate IV in Massage Therapy Practice 35,000 0C4-HC53 Certificate IV in Population Health 5,000 0



Hours - NH) 2016 2017

C4-HC54 Certificate IV in Work Health and Safety 10,500 16,320C4-HC57 Certificate IV in Education Support 8,000 10,000C4-HC58 Certificate IV in Youth Work 42,635 20,000C4-HS04 Certificate IV in Sport Development 10,829 6,000C4-HS06 Certificate IV in Biometric Technologies 13,000 10,000C4-HS08 Certificate IV in Community Services 0 40,000C4-HS10 Certificate IV in Community Development 0 5,000C4-HS12 Certificate IV in Alcohol and Other Drugs 0 20,000C4-HS13 Certificate IV in Mental Health 0 20,000C4-HS14 Certificate IV in Ageing Support 0 5,000C4-HS15 Certificate IV in Disability 0 6,000C4-HS17 Certificate IV in Allied Health Assistance 35,000 38,000C4-HS18 Certificate IV in Massage Therapy 0 8,250C4-HS19 Certificate IV in Fitness 48,770 70,000C4-HS23 Certificate IV in Population Health 0 9,700C4-HS24 Certificate IV in Dental Assisting (Radiography) 0 7,290C4-IT06 Certificate IV in Information Technology 15,000 15,780C4-IT09 Certificate IV in Information Technology Networking 30,000 32,000C4-IT10 Certificate IV in Programming 32,000 34,780C4-IT11 Certificate IV in Information Technology Testing 0 8,500C4-TC29 Certificate IV in Engineering 3,000 1,000C4-TH12 Certificate IV in Beauty Therapy 23,000 22,780C4-TH18 Certificate IV in Hairdressing 4,000 0C4-TH38 Certificate IV in Hospitality 10,620 11,000C4-TH39 Certificate IV in Travel and Tourism - remove for 2017 5,250 0C4-TS04 Certificate IV in Commercial Cookery 5,000 2,500C4-YC03 Certificate IV in Aboriginal or Torres Strait Islander Cultural Arts 1,300 1,325C4-YC10 Certificate IV in Alcohol and Other Drugs 10,400 18,000C4-YCXX Certificate IV in Community Services 0 980DP-2J10 Diploma of remedial massage 34,000 0DP-BC01 Diploma of Business 14,810 18,000DP-BC02 Diploma of Business Administration 8,640 1,000DP-BC08 Diploma of Management - Not applicable in 2017 14,260 0DP-BC15 Diploma of Management - Not applicable in 2017 2,630 0DP-BC25 Diploma of Legal Services 4,000 6,800DP-BC42 Diploma of Human Resources Management 15,740 16,000DP-BC43 Diploma of Project Management - Not applicable in 2017 26,880 0DP-BD03 Diploma of Interior Design and Decoration 33,500 28,780DP-BD05 Diploma of Screen and Media 7,000 11,000DP-BD06 Diploma of Music 13,540 0DP-BD07 Diploma of Sound Production 8,500 0DP-BD0X Diploma of Music Industry 0 17,000DP-BD12 Diploma of Software Development 0 7,400DP-BD13 Diploma of Information Technology Networking 0 12,000DP-BD18 Diploma of Library and Information Services 0 11,000DP-BE22 Diploma of Building and Construction (Building) 22,000 18,850DP-BE27 Diploma of Horticulture 18,500 13,000DP-BE45 Diploma of Building and Construction (Management) 11,000 11,000DP-BE49 Diploma of Spatial Information Services 7,000 6,000DP-BE50 Diploma of Surveying 10,000 7,000DP-BE51 Diploma of Environmental Monitoring and Technology 0 3,000DP-BT05 Diploma of Accounting 22,080 22,600DP-BT06 Diploma of Leadership and Management 0 11,000DP-CI01 Diploma of Applied Fashion Design and Technology 24,000 18,000DP-CI23 Diploma of Visual Arts 15,000 12,000DP-CI27 Diploma of Building Design 47,000 42,780DP-EE04 Diploma of Vocational Education and Training 12,000 12,000DP-FE12 Diploma of Laboratory Technology 5,000 0DP-FE16 Diploma of Forensic Science (Document Examination) 500 0



Hours - NH) 2016 2017

DP-FE26 Diploma of Public Safety (Forensic Investigation) 27,000 27,500DP-FE27 Diploma of Electronics and Communications Engineering 12,000 8,100DP-FE30 Diploma of Engineering - Technical 20,000 18,500DP-HC25 Diploma of Fitness 20,360 6,000DP-HC30 Diploma of Nursing (Enrolled-Division 2 Nursing) 120,000 169,700DP-HC41 Diploma of Community Services (Alcohol, other drugs and mental health) 10,000 0DP-HC42 Diploma of Community Services Work 20,000 0DP-HC55 Diploma of Community Services (Case Management) 8,000 0DP-HC56 Diploma of Early Childhood Education and Care 96,000 95,000DP-HC58 Diploma of Youth Work 10,000 10,000DP-HCX1 Diploma of Community Services Management – Case Management 2,700 0DP-HCX2 Diploma of Leadership & Management 3,000 0DP-HS04 Diploma of Sport Development 7,561 18,300DP-HS08 Diploma of Community Services 0 25,000DP-HS09 Diploma of Community Services (Case Management) 0 3,000DP-HS18 Diploma of Remedial Massage 0 50,000DP-HS22 Diploma of Work Health and Safety 0 12,000DP-IT06 Diploma of Information Technology 5,000 10,000DP-IT09 Diploma of Information Technology Networking 19,500 0DP-IT10 Diploma of Software Development 6,000 0DP-IT21 Diploma of Library and Information Services 14,000 0DP-TH12 Diploma of Beauty Therapy 6,000 0DP-TH38 Diploma of Hospitality 2,410 4,000DP-TH39 Diploma of Travel and Tourism 4,950 5,000DP-TH43 Diploma of Events 15,700 19,000SA-BC03 Training in Bookkeeping Using MYOB [extract from BSB30415] - Not

applicable in 20172,000 0

SA-BT01 Training Program in Advanced Business Skills [extract from BSB50407] - Not applicable in 2017

900 0

SA-BT02 Training in Intermediate Business Skills [extract from BSB40507] - Not applicable in 2017

1,010 0

SA-BT03 Training in Tax and Legal Skills [from FNS10] 1,500 0SA-EEXX Training Program in Enterprise trainer: Presenter skill set 2,000 0SA-HS06 Allied Health Assistance - Social Work Skill Set 0 1,875SA-HS07 Allied Health Assistance - Nutrition Skill Set 0 2,250SA-HS08 Allied Health Assistance - Speech Pathology Skill Set 0 2,875SA-OG02 Enterprise Trainer - Presenting Skill Set 0 5,000SA-TH77 Training in Bar Service [extract from SIT30713] 0 12,000SA-TS12 Training in Plumbing Prevocational Skills [extract from CPC32413] 3,000 2,224XA-CM02 ACT Senior Secondary Certificate (Year 12) 133,000 130,000

INSTITUTE TOTAL 3,367,000 3,263,000


CIT SOLUTIONS PTY LTD

PurposeCIT Solutions Pty Ltd (CIT Solutions) is a wholly owned subsidiary of the Canberra Institute of Technology (CIT). CIT Solutions is able to issue a range of nationally recognised qualifications from the Australian Qualifications Framework under CIT's Registered Training Organisation status (RTO 0101) to individuals both in the government and corporate sectors. CIT Solutions has a proven capability of delivering its programs and consultancy services in the ACT, interstate and internationally. CIT Solutions provides training in a large range of foreign languages as well as marketing services to CIT for the recruitment of international students. The Company offers a diverse range of short courses, both in professional development and recreational interests, ensuring that people in the Canberra region have access to lifelong learning and opportunities to interact with their communities.


maintaining an engaged workforce with the right mix of skills and experience to provide excellent client service under a contemporary framework;

enhancing CIT Solutions’ reputation as a high quality provider of fit-for-purpose learning solutions;

securing increased repeat work with existing clients and converting new opportunities into an expanded client base; and

developing a culture of sustainability whilst maintaining profitability and achieving revenue growth.



2015-16Actual

Outcome

2016-17Budget


2017-18Budget

Staffing (FTE) 108 1001 121 1211

Note(s):1. The variation between the 2016-17 Budget and the 2016-17 estimated outcome and 2017-18 Budget is due to the

investment in a new learning management system in 2016-17 which coincided with the re-design of all CIT Solutions accredited training programs. The new system requied the engagement of a team of people to implement the system in 2016-17 with ongoing system maintenance in 2017-18.

201718 Budget Statements 193 CIT Solutions



To provide high quality complete learning solutions to clients

This will be achieved by:

successfully winning contracts that comprise, analysis, design, development and delivery of complete learning solutions;

continually meeting contracted deliverables and performance measures;

receiving high satisfaction feedback from clients;

gaining repeat business; and

maintaining our reputation in the market place as a leading provider of integrated learning solutions.


To strengthen our business model with increased and diverse revenue sources

This will be achieved by:

executing the approved Strategic Growth Plan;

implementing an Off Shore Business Plan to expand services into the Asia Pacific region through partnerships in Australian government funded projects;

expanding the range of services offered to clients locally and nationally;

increasing annual turnover and improving profitability; and

maintaining a low risk business profile.

Financial ArrangementsCIT Solutions Pty Ltd is a private company receiving no funding from the ACT Government.



Balance Sheet;

Statement of Changes in Equity; and



Financial Statements – Controlled (PTE)

Table 2: CIT Solutions: Operating Statement

2016-17 Budget

$'000


$'000

2017-18 Budget

$'000

Var%

2018-19 Estimate

$'000

2019-20 Estimate

$'000

2020-21 Estimate

$'000

Revenue20,837 User Charges 20,837 21,154 2 21,480 21,793 22,156

80 Interest 80 84 5 86 88 90142 Other Revenue 142 144 1 146 149 154

21,059 Total Revenue 21,059 21,382 2 21,712 22,030 22,400


980 Superannuation Expenses 1,035 990 -4 1,003 1,014 1,0277,291 Supplies and Services 7,291 7,460 2 7,627 7,778 7,970


69 69 - 69 69 69

687 Other Expenses 687 702 2 719 736 736

19,467 Total Expenses 20,233 19,791 -2 20,124 20,442 20,779

1,592 Operating Result 826 1,591 93 1,588 1,588 1,621


826 1,591 93 1,588 1,588 1,621


Table 3: CIT Solutions: Balance Sheet

Budgetat

30/6/17 $'000

Est.Outcome as at

30/6/17 $'000

Budgetat

30/6/18 $'000

Var%

Estimateat

30/6/19 $'000

Estimateat

30/6/20 $'000

Estimateat

30/6/21 $'000

Current Assets4,943 Cash and Cash Equivalents 5,056 6,118 21 7,177 8,236 9,3383,180 Receivables 2,975 3,026 2 3,077 3,128 3,179

111 Other Assets 105 113 8 121 129 137



Equipment169 245 45 321 397 473

261 Total Non Current Assets 169 245 45 321 397 473

8,495 TOTAL ASSETS 8,305 9,502 14 10,696 11,890 13,127

Current Liabilities1,237 Payables 1,191 1,242 4 1,293 1,344 1,3951,226 Employee Benefits 1,311 1,317 .. 1,323 1,329 1,3451,349 Other Liabilities 1,835 1,835 - 1,835 1,835 1,835


Non Current Liabilities237 Employee Benefits 197 246 25 295 344 393

49 Other Liabilities 53 53 - 53 53 53

286 Total Non Current Liabilities 250 299 20 348 397 446


4,397 NET ASSETS 3,718 4,809 29 5,897 6,985 8,106


4,377 Accumulated Funds 3,698 4,789 30 5,877 6,965 8,08620 Other Reserves 20 20 - 20 20 20



Table 4: CIT Solutions: Statement of Changes in Equity

Budgetat

30/6/17 $'000

Est.Outcome as at

30/6/17 $'000

Budgetat

30/6/18 $'000

Var%

Estimateat

30/6/19 $'000

Estimateat

30/6/20 $'000

Estimateat

30/6/21 $'000

Opening Equity

3,285 Opening Accumulated Funds 3,372 3,698 10 4,789 5,877 6,96520 Opening Other Reserve 20 20 - 20 20 20


3,392 3,718 10 4,809 5,897 6,985

Comprehensive Income1,592 Operating Result - Including

Economic Flows826 1,591 93 1,588 1,588 1,621


826 1,591 93 1,588 1,588 1,621


Transactions Involving Owners Affecting Accumulated Funds-500 Dividend Approved -500 -500 - -500 -500 -500

-500 Total Transactions Involving Owners Affecting Accumulated Funds

-500 -500 - -500 -500 -500


20 Closing Other Reserve 20 20 - 20 20 20


3,718 4,809 29 5,897 6,985 8,106


Table 5: CIT Solutions: Cash Flow Statement

2016-17 Budget

$'000


$'000

2017-18 Budget

$'000

Var %

2018-19 Estimate

$'000

2019-20 Estimate

$'000

2020-21 Estimate

$'000


20,738 User Charges 20,738 21,055 2 21,381 21,694 22,05780 Interest Received 80 84 5 86 88 90

142 Other 142 144 1 146 149 15420,960 Operating Receipts 20,960 21,283 2 21,613 21,931 22,301

Payments10,061 Employee 10,712 10,191 -5 10,327 10,465 10,587

961 Superannuation 1,015 971 -4 983 994 1,0077,189 Supplies and Services 7,189 7,358 2 7,526 7,678 7,870

839 Other 839 854 2 871 888 88819,050 Operating Payments 19,755 19,374 -2 19,707 20,025 20,352


1,205 1,909 58 1,906 1,906 1,949

CASH FLOWS FROM INVESTING ACTIVITIESPayments

347 Purchase of Property, Plant and Equipment

347 347 - 347 347 347

347 Investing Payments 347 347 - 347 347 347


-347 -347 - -347 -347 -347

CASH FLOWS FROM FINANCING ACTIVITIESPayments

500 Payment of Dividend 1,000 500 -50 500 500 500500 Financing Payments 1,000 500 -50 500 500 500

-500 NET CASH INFLOW/(OUTFLOW) FROM FINANCING ACTIVITIES

-1,000 -500 50 -500 -500 -500

1,063 NET INCREASE / (DECREASE) IN CASH AND CASH EQUIVALENTS

-142 1,062 848 1,059 1,059 1,102


5,198 5,056 -3 6,118 7,177 8,236


5,056 6,118 21 7,177 8,236 9,338




Operating Statement

user charges: the increase of $0.317 million in the 2017-18 Budget from the 2016-17 estimated outcome is due to expected growth in revenue from the re-designed training programs being offered to clients using contemporary learning methods.

employee expenses:

- the increase of $0.711 million in the 2016-17 estimated outcome from the original budget is due to the implementation of a new learning management system together with the re-design of the CIT Solutions accredited training programs. This required the engagement of a team of learning specialists to complete the implementation during 2016-17; and

- the decrease of $0.581 million in the 2017-18 Budget from the 2016-17 estimated outcome is due to completing the implementation of the new learning management system in 2016-17 with a reduced team of learning specialists continuing to maintain the new system in 2017-18.

superannuation expenses: the increase of $0.055 million in the 2016-17 estimated outcome from the original budget is mainly due to the increased staffing level in 201617 with a slightly reduced level in 2017-18.

supplies and services: the increase of $0.169 million in the 2017-18 Budget from the 2016-17 estimated outcome is due to indexation of costs relating to supplies and services.

Balance Sheet

cash and cash equivalents: the increase of $1.062 million in the 2017-18 Budget from the 2016-17 estimated outcome is due to an increased operating profit for the year.

current receivables: the decrease of $0.205 million in the 2016-17 estimated outcome from the original budget is due to more timely payment of debts from major clients.

property, plant and equipment: the decrease of $0.092 million in the 2016-17 estimated outcome from the original budget is due to depreciation of leasehold improvements with no new improvements undertaken in 2016-17.

current and non current employee benefits: the increase of $0.045 million in the 2016-17 estimated outcome is mainly due to an increase in staff levels in 2016-17.

current and non current other liabilities: the increase of $0.490 million in the 2016-17 estimated outcome from the original budget relates to increased revenue paid in advance of services being provided to clients at the reporting date.



total comprehensive income:

- the decrease of $0.766 million in the 2016-17 estimated outcome from the original budget is due to the additional employee costs incurred to implement the new learning management system in 2016-17; and

- the increase of $0.765 million in the 2017-18 Budget from the 2016-17 estimated outcome is due to reduced employee expenses and increased revenue from the re-designed training programs.

Cash Flow Statement

Variations in this Statement are explained in the notes above.


CULTURAL FACILITIES CORPORATION – STATEMENT OF INTENT

The Cultural Facilities Corporation is a Territory Authority established under the Cultural Facilities Corporation Act 1997.


The responsible Minister, Gordon Ramsay MLA, was consulted during the preparation of the Statement of Intent.

The Statement of Intent, which focuses on the 2017-18 Budget year, has been developed in the context of a four year forward planning horizon to be incorporated, as far as practicable, into the Cultural Facilities Corporation strategic and business planning processes.

The Cultural Facilities Corporation 2017-18 Statement of Intent has been agreed between:

201718 Budget Statements 201 Cultural Facilities Corporation

CULTURAL FACILITIES CORPORATION

As a result of the 2015 amendments to the Financial Management Act 1996, the budget statement for Cultural Facilities Corporation is its Statement of Intent.

PurposeThe vision of Cultural Facilities Corporation (CFC) is for Canberra to be a creative capital, which values arts and heritage for their intrinsic qualities, their contribution to building a more inclusive and resilient society, their support for making the city an exciting place to live and an attractive destination for business and tourism, and their important role in the economy of the ACT.

The CFC sees itself as a leader in this creative city, providing high quality cultural experiences based on the arts and heritage resources that it holds in trust for the people of Canberra, and playing a significant role in the region’s cultural and economic life.

Nature and Scope of Activities

General activities

The CFC manages a number of the ACT’s major cultural assets, comprising:

the Canberra Theatre Centre;

the Canberra Museum and Gallery (CMAG), including the Nolan Collection Gallery @ CMAG; and

the ACT Historic Places (Lanyon, Calthorpes’ House, and Mugga Mugga).

Through its activities at these venues, the CFC provides cultural services across the performing arts, the visual arts, social history and cultural heritage management, by:

providing performing arts presentations, exhibitions, education programs, community programs and other events; and

conserving and interpreting the historic sites that it manages.

Risks

The key strategic risk that may influence the CFC’s future financial position is the variability and unpredictability of the performing arts business. Theatre revenues represent the major part of the CFC's non-government revenue and are the main variable in its financial performance. These revenues are highly dependent on: the availability of performing arts productions for touring; national developments with regard to major performing arts


companies; and discretionary consumer expenditure, which is vulnerable to general economic downturns.

One strategy that the CFC has adopted in recent years in order to respond to the variability and unpredictability of the performing arts business, is to develop a Theatre Reserve from the proceeds of theatre commercial activity. This fund is identified as a separate reserve in the CFC’s financial statements. It assists the CFC by providing the financial backing to program major ventures that would be beyond the scope of the Canberra Theatre Centre’s annual theatre programming budget, as well as providing a financial contingency if a major theatre venture does not achieve its budgeted financial outcome.

A specific risk that the CFC has identified for the short to medium term is that of the increasing pressure on car parking availability for theatre patrons. Studies previously conducted for the CFC show that car parking availability is a critical factor in people’s willingness to attend theatre performances, and therefore has a direct impact on revenue for the Canberra Theatre Centre and wider CFC. Car parking use by theatre patrons allows city centre car parking to be used efficiently, since a space used during the day by city shoppers and workers can be reused at night for theatre attendance.

During 2017-18, the Constitution Place project will commence in the area adjacent to the ACT Legislative Assembly. While the completed project will deliver more spaces in underground car parks than the surface car parks lost to the development, there will be a major impact on car parking during the construction phase. The CFC is working with the Constitution Place developers and with other ACT Government agencies to explore options to mitigate the loss of car parks during construction, including: the potential for a temporary car park adjacent to the Canberra Theatre Centre; the provision of information to theatre patrons about other parking options in the city centre; and the scope to open car parks in the new development prior to the project’s completion.

Increasing energy costs represent a further risk to the CFC in terms of upward pressure on its budget. The specialised nature of the CFC’s activities, including the need to light theatrical performances and to maintain consistent climate control for collection items, presents challenges in terms of reducing energy costs. The CFC will, however, implement a new Resource Management Plan from 2017-18 onwards in order to ensure it manages its energy use as efficiently as possible. One aspect of this will be the implementation of a CMAG lighting project, funded in the 2017-18 ACT Budget, to replace CMAG’s outdated system with new LED lighting that meets contemporary energy efficiency, conservation and display standards.

The CFC will address these, and other risks, to the best of its ability, including through its Strategic Risk Management Plan. This Plan informs the prioritisation of projects for internal audit programs and is supported by other plans, such as those covering Fraud Control, Business Continuity and Disaster Preparedness. The CFC regularly reviews risk management and fraud control procedures and a risk management plan is prepared for all major events.


2017-18 Priorities and Next Three Financial YearsThe CFC’s 2016-2021 Strategic Plan covers the period including 2017-18 and the next three financial years. The Plan identifies the following six key priorities for the CFC during this period. Develop a major new theatre for the nation’s capital, with an education program worthy

of national theatre status.

Bring large-scale theatre shows to Canberra on a regular basis.

Extend CMAG’s profile and reach to fulfil its role as the premier museum and gallery for the Canberra region: upgrade its facilities; grow its collection; and double visitation and participation in its programs.

Develop Lanyon as a heritage tourist hub and launch the new Lanyon Heritage Centre.

Expand the CFC’s portfolio of historic places and enhance the visitor experience at these places.

Play a leading role in the planning of the Civic Square/City Hill cultural precinct, and the wider city centre of Canberra.

In terms of more immediate priorities, issues to be pursued by the CFC include:

maximising visitation to, access to, and patronage of, the CFC’s facilities, programs and collections through a wide range of performing arts, visual arts, social history and heritage programs;

presenting exhibitions, education and community programs at the museums and galleries managed by the CFC, including through partnership programming and touring activity;

presenting a varied program of performing arts productions at the Canberra Theatre Centre, including by attracting major theatre presentations to Canberra;

playing an active role in initiatives that contribute to the revitalisation of the city centre and that plan the future provision of cultural facilities in Civic, including through: undertaking community consultation in relation to new theatre facilities for Canberra; working with the developers of the Constitution Place project to achieve mutual benefits from the project while also minimising disruption for the CFC’s operations during the project’s construction phase; maintaining car parking for theatre patrons; progressing CMAG enhanced usage plans; and maximising the benefits of Light Rail for the CFC’s city centre facilities;

maximising non-government income, both through the CFC’s business operations and by encouraging support to the CFC through sponsorship and philanthropy;

undertaking a CMAG lighting project, by installing new LED lighting that will ensure state-of-the art standards of lighting in gallery spaces, while also achieving improvements in safety, energy efficiency and in conditions for the conservation of collection items; and


undertaking ongoing programs of infrastucture upgrades and capital projects, in order to ensure the CFC’s cultural facilities remain fit for purpose and support the delivery of high quality cultural experiences.

Estimated Employment Level and Employment Profile


2015-16Actual

Outcome

2016-17Budget


2017-18Budget

Staffing (FTE) 93 82 901 901

Note(s):1. The high number of casuals employed and the variations in patterns of casual employment make a definitive Full Time

Equivalent (FTE) difficult to estimate. The 2017-18 Budget and 2016-17 estimated outcome FTE have been calculated on the basis of expectations of staffing, especially casual employment, at these times. As a result of the large numbers of casual and part-time staff employed by the CFC, the actual headcount of employees is typically a much higher figure than the FTE figure. For example, the headcount as at 30 June 2016 was 146 employees.

Table 2: 2017-18 Employment Profile

Classification Male Female TotalASO2 1 5 6ASO3 1 5 6ASO4 3 6 9ASO5 4 5 9ASO6 5 4 9GSO2 0 2 2GSO5 1 0 1GSO6 1 0 1GSO7 1 0 1GSO9 1 0 1PO1 1 4 5PO2 0 4 4SOG C 2 4 6SOG B 2 1 3SOG A 1 0 1Box Office 2 2 4Executive Contract 0 1 1Patron Services 4 5 9Tech. Level 1 4 2 6Tech. Level 2 3 0 3Tech. Level 4 3 0 3Total 40 50 90



Strategic Objective 1 - CFC

To provide cultural leadership in the Canberra region and beyond

Strategic Indicator 1: The extent to which the CFC connects people with rich and diverse cultural experiences through activities at its venues, in the following areas.

Leadership: A cultural leader in the ACT region and beyond

Strategy: A clear direction for the future

Governance: An accountable and dynamic organisation

People: An employer of choice

Finances: Long-term financial sustainability

Assets: Support for delivering high quality cultural experiences

Strategic Objective 2 – Canberra Theatre Centre

To be a leading theatre centre in Australasia and Asia

Strategic Indicator 2: The extent to which the Canberra Theatre Centre connects people with theatre experiences of national and international quality, in the following areas.

Customers: Audiences that are growing, diverse, engaged and entertained

Programming: A diverse, high quality, entertaining and distinctive program

Business: Venues, systems and people that support high quality live performances

Leadership: An integral part of the cultural life of the Canberra region and beyond

Strategic Objective 3 - CMAG

To be a leading regional cultural venue in Australia and beyond

Strategic Indicator 3: The extent to which CMAG connects people with the Canberra region’s rich and diverse stories, sense of place, and contemporary identity, in the following areas.

Customers: Audiences that are growing, diverse and engaged

Programming: Exhibitions and programs that reflect Canberra’s unique identity

Stewardship: Venues and collections that allow CMAG to tell the many stories of Canberra



Strategic Objective 4 – ACT Historic Places

To be leading historic places in Australia and beyond

Strategic Indicator 4: The extent to which ACT Historic Places connects people with Canberra’s rich and diverse stories and heritage, in the following areas.

Customers: Audiences that are growing, diverse and engaged

Programming: Programs that explore Canberra’s history by interpreting each place

Stewardship: Buildings, grounds and collections that are conserved and researched


Output Classes

Output Class 1: Cultural Facilities Management

Table 3: Output Class 1: Cultural Facilities Management


$'000 $'000



Output 1.1: Cultural Facilities Corporation

CFC manages a number of the ACT’s major cultural assets, comprising:

the Canberra Theatre Centre;

CMAG, including the Nolan Collection Gallery @ CMAG; and

the ACT Historic Places (Lanyon, Calthorpes' House and Mugga Mugga).

Through its activities at these venues, the CFC provides cultural services across the performing arts, the visual arts, social history and cultural heritage management, by: providing performing arts presentations, exhibitions, education programs, community

programs and other events; and

conserving and interpreting the historic sites that it manages.


Table 4: Output 1.1: Cultural Facilities Corporation2016-17 2017-18

Estimated Outcome Budget$'000 $'000



Output Class 1: Cultural Facilities Management

Output 1.1: Cultural Facilities Corporation


2016-17Targets


2017-18Targets

a) Estimated number of visitors/patrons to CFC facilities/programs1

357,500 481,950 381,000

b) Number of exhibitions at facilities managed by CFC2

21 21 20

c) Number of education and community programs provided by CFC3

494 510 520

d) Number of days venue usage at the Canberra Theatre Centre’s venues4

576 607 607

e) Customer satisfaction with quality of services provided by CFC, as measured by annual survey

90% >90% 90%

f) Cost to Government per estimated visitor/patron to CFC facilities/programs5

$24.25 $17.86 $22.87

g) Own sourced revenue as a proportion of total revenue for CFC

46.3% 46.3% 45.9%

Note(s):1. The increase in the 2016-17 estimated outcome from the 2016-17 Target is due primarily to higher than anticipated

attendances at the exhibition INK REMIX at the Museum of Brisbane. Over 140,000 visitors attended this CMAG travelling exhibition during 2016-17. The decrease in the 2017-18 Target from the 2016-17 estimated outcome is due primarily to a reduced touring schedule for CMAG exhibitions during 2017-18.

2. The decrease in the 2017-18 Target from the 2016-17 estimated outcome and the 2016-17 Target reflects the scheduling of CMAG exhibitions for 2017-18.

3. The increase in the 2016-17 estimated outcome from the 2016-17 Target is due to additional programs being delivered to respond to demand for both outreach and onsite programs. The increase in the 2017-18 Target from the 2016-17 estimated outcome and the 2016-17 Target reflects continuing high demand for programs and the provision of some additional programs to celebrate the 90th anniversary of Calthorpes’ House in the second half of 2017.

4. The increase in the 2016-17 estimated outcome from the 2016-17 Target is due to additional theatre shows being booked after the 2016-17 Target had been set.

5. The decrease in the 2016-17 estimated outcome from the 2016-17 Target is due to the higher estimated number of visitors/patrons in 2016-17. The increase in the 2017-18 target from the 2016-17 estimated outcome is due to the lower estimated number of visitors/patrons in 2017-18.





$'000

2017-18 Budget

$'000

2018-19 Estimate

$'000

2019-20 Estimate

$'000

2020-21 Estimate

$'000

2016-17 Budget 8,606 8,734 8,913 9,089 9,089

2017-18 Budget Technical AdjustmentsRevised Indexation Parameters - (20) (31) (32) 136Revised Superannuation Parameters - 1 (14) (30) (37)

2017-18 Budget 8,606 8,715 8,868 9,027 9,188



$'000

2017-18 Budget

$'000

2018-19 Estimate

$'000

2019-20 Estimate

$'000

2020-21 Estimate

$'000

2016-17 Budget 2,184 1,190 408 418 418

2017-18 Budget Policy AdjustmentsBuilding a better city - Upgrading lighting at the

Canberra Museum and Gallery- 280 - - -

2017-18 Budget Technical AdjustmentsInfinity wiring replacement at the Canberra

Theatre Centre- 300 - - -

Revised Indexation Parameters - - - - 10

2017-18 Budget 2,184 1,770 408 418 428


Summary of 2017-18 Cultural Facilities Corporation Infrastructure Program

Table 8: 2017-18 Cultural Facilities Corporation Infrastructure Program

Project 2017-18$'000

2018-19$'000

2019-20$'000

2020-21$'000

Four YearInvestment

$'000


New WorkBuilding a better city - Upgrading lighting

at the Canberra Museum and Gallery280 - - - 280

Total New Capital 280 - - - 280

Better Infrastructure FundInfrastructure Upgrades 398 408 418 428 1,652

Total Better Infrastructure Fund 398 408 418 428 1,652

Work In ProgressCanberra Theatre Centre Upgrades –

Stage 3792 - - - 792

Total Work In Progress 792 - - - 792

TOTAL CAPITAL WORKS PROGRAM 1,470 408 418 428 2,724

Strategic Asset Management Plan The CFC is the custodian and manager of a number of public building assets in the ACT. The assets are culturally significant to the ACT community, and include venues of historical importance, public theatres and galleries. The building portfolio is diverse, including income generating, non commercial and heritage assets. The managed premises range from domestic housing to major civic buildings.

The CFC’s Strategic Asset Management Plan forms the basis of its strategic asset planning, including the development of proposals for capital works funding. A comprehensive review and update of the Plan was undertaken in 2010-11 to cover the 20 year timeframe from 2011-2030. A further update of the Plan for Canberra Theatre Centre was completed in 2016-17, while an update for CMAG was commissioned in 2016-17. An update of the plan for the ACT Historic Places will be undertaken during 2017-18.


Monitoring and ReportingThe CFC shall satisfy the requirements of the Chief Minister’s Annual Reports Directions. The CFC Annual Report will, amongst other things, report against the requirements of this Statement of Intent.

The Financial Management Act 1996 authorises the Treasurer to obtain financial and other statements from CFC for a stated period including annual, quarterly and monthly reporting.

Annual Reporting

As part of preparations for end of year reporting, CMTEDD will advise the dates when the following documents are required at the CMTEDD and at the Auditor-General's Office.

Certified financial statements.

Management discussion and analysis.

A full and accurate set of audited financial records for the preceding financial year in the form requested.


Financial ArrangementsDuring 2017-18, the CFC will continue to implement a comprehensive budget strategy that seeks to place its finances on a sound and sustainable basis into the future. One aspect of this budget strategy is the use of a Theatre Reserve to assist in responding to the variability and unpredictability of the performing arts business, including as a result of economic factors.

The deficits that are projected for the CFC’s operating results for 2017-18 and the forward years are due to it incurring large, unfunded depreciation expenses on its substantial asset holdings. The CFC’s approach to managing its finances is to seek to achieve operating outcomes equal to, or better than, the projected deficits, and, where these operating outcomes result from good theatre trading, to add to the Theatre Reserve.

The CFC will receive funding in the 2017-18 Budget to undertake a CMAG lighting project, by installing new LED lighting that will ensure state-of-the-art standards of lighting in gallery spaces, while also achieving improvements in safety, energy efficiency and in conditions for the conservation of collection items.



Budgeted financial statements for the 2017-18 Budget year, as well as forward estimates for the following three financial years appear below. These general purpose financial statements, have been prepared in accordance with the ACT’s Model Financial Statements and include:



Table 9: Cultural Facilities Corporation: Operating Statement

2016-17 Budget

$'000


$'000

2017-18 Budget

$'000

Var%

2018-19 Estimate

$'000

2019-20 Estimate

$'000

2020-21 Estimate

$'000


Payments8,606 8,715 1 8,868 9,027 9,188

7,353 User Charges 7,353 7,349 .. 7,343 7,339 7,47091 Interest 91 91 - 91 91 9339 Resources Received Free of

Charge39 39 - 39 39 39

16,089 Total Revenue 16,089 16,194 1 16,341 16,496 16,790


927 Superannuation Expenses 927 962 4 961 960 9617,601 Supplies and Services 7,901 7,606 -4 7,695 7,795 7,9902,738 Depreciation and

Amortisation2,738 2,858 4 2,938 2,939 2,939

66 Other Expenses 66 70 6 71 71 71

18,658 Total Expenses 18,884 18,880 .. 19,108 19,264 19,558



-2,795 -2,686 4 -2,767 -2,768 -2,768


Table 10: Cultural Facilities Corporation: Balance Sheet

Budgetat

30/6/17 $'000

Est.Outcome as at

30/6/17 $'000

Budgetat

30/6/18 $'000

Var%

Estimateat

30/6/19 $'000

Estimateat

30/6/20 $'000

Estimateat

30/6/21 $'000


472 Receivables 694 695 .. 696 697 69825 Inventories 20 20 - 20 20 20

107 Other Assets 240 240 - 240 240 240


Non Current Assets58,946 Property, Plant and

Equipment58,946 57,758 -2 55,378 53,007 50,646

22 Capital Works in Progress 33 33 - 33 33 33


60,852 TOTAL ASSETS 61,208 60,339 -1 58,027 55,724 53,431

Current Liabilities741 Payables 923 975 6 1,010 1,045 1,080

1,408 Employee Benefits 1,585 1,596 1 1,607 1,618 1,629194 Other Liabilities 111 94 -15 94 94 94


Non Current Liabilities119 Employee Benefits 111 112 1 113 114 115



58,390 NET ASSETS 58,478 57,562 -2 55,203 52,853 50,513


29,852 Accumulated Funds 29,640 28,724 -3 26,365 24,015 21,67528,038 Asset Revaluation Surplus 28,038 28,038 - 28,038 28,038 28,038

500 Other Reserves 800 800 - 800 800 800



Table 11: Cultural Facilities Corporation: Statement of Changes in Equity

Budgetat

30/6/17 $'000

Est.Outcome as at

30/6/17 $'000

Budgetat

30/6/18 $'000

Var%

Estimateat

30/6/19 $'000

Estimateat

30/6/20 $'000

Estimateat

30/6/21 $'000

Opening Equity30,237 Opening Accumulated Funds 30,251 29,640 -2 28,724 26,365 24,01528,038 Opening Asset Revaluation

Reserve28,038 28,038 - 28,038 28,038 28,038

500 Opening Other Reserve 800 800 - 800 800 800


59,089 58,478 -1 57,562 55,203 52,853


Economic Flows-2,795 -2,686 4 -2,767 -2,768 -2,768


-2,795 -2,686 4 -2,767 -2,768 -2,768


Transactions Involving Owners Affecting Accumulated Funds2,184 Capital Injections 2,184 1,770 -19 408 418 428


2,184 1,770 -19 408 418 428

Closing Equity29,852 Closing Accumulated Funds 29,640 28,724 -3 26,365 24,015 21,67528,038 Closing Asset Revaluation

Reserve28,038 28,038 - 28,038 28,038 28,038

500 Closing Other Reserve 800 800 - 800 800 800


58,478 57,562 -2 55,203 52,853 50,513


Table 12: Cultural Facilities Corporation: Cash Flow Statement

2016-17 Budget

$'000


$'000

2017-18 Budget

$'000

Var %

2018-19 Estimate

$'000

2019-20 Estimate

$'000

2020-21 Estimate

$'000



8,606 8,715 1 8,868 9,027 9,188

7,365 User Charges 7,365 7,361 7,355 7,351 7,48291 Interest Received 91 91 - 91 91 93

511 Other 511 511 - 511 511 51116,573 Operating Receipts 16,573 16,678 1 16,825 16,980 17,274


927 Superannuation 927 962 4 961 960 9617,550 Supplies and Services 7,850 7,555 -4 7,644 7,744 7,939

601 Other 601 605 1 606 606 60616,355 Operating Payments 16,655 16,460 -1 16,608 16,763 17,057


-82 218 366 217 217 217

CASH FLOWS FROM INVESTING ACTIVITIESPayments

2,334 Purchase of Property, Plant and Equipment

2,334 1,670 -28 558 568 578

2,334 Investing Payments 2,334 1,670 -28 558 568 578


-2,334 -1,670 28 -558 -568 -578


2,184 Capital Injections 2,184 1,770 -19 408 418 4282,184 Financing Receipts 2,184 1,770 -19 408 418 428


2,184 1,770 -19 408 418 428


-232 318 237 67 67 67


1,507 1,275 -15 1,593 1,660 1,727


1,275 1,593 25 1,660 1,727 1,794




Operating Statement

There are no significant variations to the Operating Statement.

Balance Sheet

cash and equivalents: the increase of $0.318 million in the 2017-18 Budget from the 2016-17 estimated outcome is mainly due to capital injection funding being received in 2017-18 for an electrical wiring replacement project at the Canberra Theatre Centre that was completed in 2016-17 ($0.3 million).


capital injections: the decrease of $0.414 million in the 2017-18 Budget from the 2016-17 estimated outcome is due to the fact that capital projects will be funded at a lower cost in 2017-18 compared with 2016-17.

Cash Flow Statement



ICON WATER LIMITED

PurposeIcon Water Limited (Icon Water) is a Territory-owned corporation which undertakes two primary activities: delivery of water, sewerage and associated services; and managing the investment in the energy business, ActewAGL.

The Territory-owned Corporations Act 1990 (TOC Act) identifies four equally important main objectives for Icon Water. These are:

to operate at least as efficiently as any comparable business;

to maximise the sustainable return to the Territory on the investment in Icon Water and ActewAGL;

to show a sense of social responsibility by having regard to the interests of the community in which we operate, and by trying to accommodate and encourage those interests; and

where our activities affect the environment, to effectively integrate environmental and economic considerations in decision-making processes.

These main objectives provide the foundation upon which Icon Water conducts its strategic planning.

2017-18 PrioritiesOver the period 2017-18 to 2020-21 Icon Water will pursue four strategic objectives through strategies relating to people, asset management, customer and financial management.Key priorities for each strategic objective in 2017-18 are:

people: to achieve a culture that protects, engages and develops our people Icon Water will continue to implement the Work, Health and Safety Strategy 2016-17 to 2018-19 and the People Strategy 2016-2017;

asset management: to achieve excellence in asset management Icon Water will continue to implement the Enterprise Asset Management Strategy 2015-16 to 2018-19. The strategy will support high levels of service to customers and realise the maximum value from its assets;

customer: to meet customer needs and exceed customer expectations Icon Water will continue to implement the Customer Management Strategy 2016-17 to 2018-19. The strategy seeks to ensure we consistently deliver quality and value and achieve optimised customer management; and

201718 Budget Statements 219 Icon Water Limited

Financial: to achieve sustainable financial returns and gearing levels Icon Water will continue to generate profits to support strong dividends to shareholders and continue to actively manage its energy investments.

Icon Water’s 2017-18 Budget forecasts are subject to potentially significant variation arising from factors outside Icon Water’s control. These factors include:

Climatic conditions – average weather patterns which have been assumed in determining customer consumption and the budget estimates. Variability in climatic conditions may result in material variations to Icon Water’s profitability;

Regulatory water and sewerage price determinations – revenue targets are underpinned by the Industry Panel’s final decision setting prices until the end of the current regulatory period 2017-18. The Budget assumes prices will be reset from 2018-19; and

ActewAGL’s operations – the profitability of the investment in ActewAGL may be affected by climatic conditions and regulatory outcomes (including in relation to pricing for energy distribution and retail, and access arrangements for the ACT gas network).


Table 1: Estimated Employment Level2015-16

ActualOutcome

2016-17Budget


2017-18Budget

Staffing (FTE) 389 392 388 4191

Note(s):1. The variation between the 2017-18 Budget and the 2016-17 estimated outcome is due to the temporary contract

positions for the Information Technology system upgrades and introduction of a trainee program.


Table 2: Changes to appropriation – Controlled Recurrent Payments2016-17

Estimated Outcome

$'000

2017-18 Budget

$'000

2018-19 Estimate

$'000

2019-20 Estimate

$'000

2020-21 Estimate

$'000

2016-17 Budget 11,687 11,979 12,278 12,585 12,585

2017-18 Budget Technical AdjustmentsRevised Indexation Parameters - Assistance for

Water and Sewerage Services- - - - 315

2017-18 Budget 11,687 11,979 12,278 12,585 12,900



Table 3: Icon Water Limited: Operating Statement 2016-17 Budget

$'000


$'000

2017-18 Budget

$'000

Var%

2018-19 Estimate

$'000

2019-20 Estimate

$'000

2020-21 Estimate

$'000

Income


Payments11,687 11,979 2 12,278 12,585 12,900

318,682 User Charges 305,563 316,739 4 328,003 339,795 351,8951,076 Interest 1,030 1,084 5 1,111 1,139 1,1673,521 Other Revenue 4,042 3,516 -13 3,603 3,693 3,785

334,966 Total Revenue 322,322 333,318 3 344,995 357,212 369,747

Gains9,890 Other Gains 9,431 10,000 6 10,000 10,000 10,000

9,890 Total Gains 9,431 10,000 6 10,000 10,000 10,000

344,856 Total Income 331,753 343,318 3 354,995 367,212 379,747


7,405 Superannuation Expenses 7,353 8,326 13 8,576 8,193 8,43980,386 Supplies and Services 82,895 83,518 1 79,045 79,140 76,97448,278 Depreciation and

Amortisation49,548 52,287 6 54,167 57,192 59,347

27,967 Cost of Goods Sold 27,676 28,634 3 29,866 31,098 32,31972,512 Borrowing Costs 69,568 75,082 8 71,870 72,565 74,229

9,181 Other Expenses 8,549 9,723 14 10,320 10,954 11,626

301,354 Total Expenses 293,431 306,879 5 304,791 309,585 314,843

73,163 Share of Operating Profit from Joint Venture Accounted for using the Equity Method

82,153 73,721 -10 75,449 77,529 82,989

116,665 Operating Result from Ordinary Activities

120,475 110,160 -9 125,653 135,156 147,893

34,999 Income Tax Equivalent 37,336 33,048 -11 37,696 40,547 44,368

81,666 Operating Result 83,139 77,112 -7 87,957 94,609 103,525


83,139 77,112 -7 87,957 94,609 103,525


Table 4: Icon Water Limited: Balance Sheet Budget

at30/6/17

$'000

Est.Outcome as at

30/6/17 $'000

Budgetat

30/6/18 $'000

Var%

Estimateat

30/6/19 $'000

Estimateat

30/6/20 $'000

Estimateat

30/6/21 $'000

Current Assets40,506 Cash and Cash Equivalents 39,868 40,676 2 40,258 40,495 40,41549,696 Receivables 55,521 56,994 3 58,517 60,089 61,698

4,286 Inventories 4,343 4,343 - 4,343 4,343 4,34310,731 Other Assets 9,273 9,273 - 9,273 9,268 9,273


Non Current Assets2,374 Receivables 15,763 13,995 -11 12,228 10,460 8,692

924,951 Investment - Joint Venture 978,165 1,000,386 2 1,003,835 1,014,864 1,026,8542,117,550 Property, Plant and

Equipment2,103,182 2,176,128 3 2,240,631 2,291,045 2,332,517

23,020 Intangible Assets 1,370 1,370 - 1,370 1,370 1,370158,943 Capital Works in Progress 150,246 155,457 3 157,861 163,667 166,630

28,167 Tax Assets 28,463 28,463 - 28,463 28,463 28,46313,964 Other Assets 0 0 - 2,204 0 0

3,268,969 Total Non Current Assets 3,277,189 3,375,799 3 3,446,592 3,509,869 3,564,526

3,374,188 TOTAL ASSETS 3,386,194 3,487,085 3 3,558,983 3,624,064 3,680,255


312,173 Interest-Bearing Liabilities 312,101 18,054 -94 234,965 0 021,247 Employee Benefits 21,524 21,668 1 21,817 21,970 22,12822,665 Other Provisions 27,010 21,778 -19 27,482 29,192 30,975

7,791 Income Tax Payable 4,626 3,198 -31 6,863 8,665 7,0175,297 Other Liabilities 5,324 5,324 - 5,324 5,324 5,324

416,321 Total Current Liabilities 414,497 117,980 -72 340,842 107,788 108,479

Non Current Liabilities1,281,328 Interest-Bearing Liabilities 1,273,151 1,660,559 30 1,499,595 1,787,730 1,833,230

1,123 Employee Benefits 1,007 1,007 - 1,007 1,007 1,007397,985 Other Provisions 10,727 10,727 - 10,727 10,727 10,727

0 Deferred Tax Liability 400,844 400,844 - 400,844 400,844 400,844

1,680,436 Total Non Current Liabilities 1,685,729 2,073,137 23 1,912,173 2,200,308 2,245,808

2,096,757 TOTAL LIABILITIES 2,100,226 2,191,117 4 2,253,015 2,308,096 2,354,287

1,277,431 NET ASSETS 1,285,968 1,295,968 1 1,305,968 1,315,968 1,325,968

Budgetat

30/6/17 $'000

Est.Outcome as at

30/6/17 $'000

Budgetat

30/6/18 $'000

Var%

Estimateat

30/6/19 $'000

Estimateat

30/6/20 $'000

Estimateat

30/6/21 $'000

REPRESENTED BY FUNDS EMPLOYED877,241 Accumulated Funds 877,180 887,180 1 897,180 907,180 917,180390,370 Asset Revaluation Surplus 398,968 398,968 - 398,968 398,968 398,968


9,820 Other Reserves 9,820 9,820 - 9,820 9,820 9,820

1,277,431 TOTAL FUNDS EMPLOYED 1,285,968 1,295,968 1 1,305,968 1,315,968 1,325,968

Table 5: Icon Water Limited: Statement of Changes in Equity Budget

at30/6/17

$'000

Est.Outcome as at

30/6/17 $'000

Budgetat

30/6/18 $'000

Var%

Estimateat

30/6/19 $'000

Estimateat

30/6/20 $'000

Estimateat

30/6/21 $'000

Opening Equity

867,349 Opening Accumulated Funds 867,749 877,180 1 887,180 897,180 907,180390,370 Opening Asset Revaluation

Reserve398,968 398,968 - 398,968 398,968 398,968

9,820 Opening Other Reserve 9,820 9,820 - 9,820 9,820 9,820

1,267,539 Balance at the Start of the Reporting Period

1,276,537 1,285,968 1 1,295,968 1,305,968 1,315,968


Economic Flows83,139 77,112 -7 87,957 94,609 103,525


83,139 77,112 -7 87,957 94,609 103,525


Transactions Involving Owners Affecting Accumulated Funds-71,774 Dividend Approved -73,708 -67,112 9 -77,957 -84,609 -93,525


-73,708 -67,112 9 -77,957 -84,609 -93,525

Closing Equity877,241 Closing Accumulated Funds 877,180 887,180 1 897,180 907,180 917,180390,370 Closing Asset Revaluation

Reserve398,968 398,968 - 398,968 398,968 398,968

9,820 Closing Other Reserve 9,820 9,820 - 9,820 9,820 9,820

1,277,431 Balance at the end of the Reporting Period

1,285,968 1,295,968 1 1,305,968 1,315,968 1,325,968

Table 6: Icon Water Limited: Cash Flow Statement 2016-17 Budget

$'000


$'000

2017-18 Budget

$'000

Var %

2018-19 Estimate

$'000

2019-20 Estimate

$'000

2020-21 Estimate

$'000



11,687 11,979 2 12,278 12,585 12,900

320,783 User Charges 315,179 321,723 2 318,882 343,730 353,7401,076 Interest Received 1,030 1,084 5 1,111 1,139 1,167


97,962 Other 54,500 51,500 -6 72,000 66,500 71,000431,508 Operating Receipts 382,396 386,286 1 404,271 423,954 438,807


7,405 Superannuation 7,353 8,326 13 8,576 8,194 8,440105,644 Supplies and Services 118,224 112,343 -5 94,902 109,521 105,601

78,722 Borrowing Costs 74,356 81,748 10 77,679 79,008 78,8930 Income Tax Equivalent

Payments40,160 34,476 -14 34,031 38,744 46,016

0 Related to Cost of Goods Sold 0 0 - 0 0 74155,652 Other 8,549 9,723 14 10,321 10,955 11,626

303,047 Operating Payments 296,092 295,887 .. 276,438 296,535 302,963


86,304 90,399 5 127,833 127,419 135,844


0 Proceeds from Sale of Property, Plant and Equipment

34,424 0 -100 0 0 0

0 Investing Receipts 34,424 0 -100 0 0 0


and Equipment105,953 114,523 8 108,409 97,075 89,683



-71,529 -114,523 -60 -108,409 -97,075 -89,683


123,000 Proceeds from Borrowings 68,000 409,000 501 74,000 289,000 45,500123,000 Financing Receipts 68,000 409,000 501 74,000 289,000 45,500

2016-17 Budget

$'000


$'000

2017-18 Budget

$'000

Var %

2018-19 Estimate

$'000

2019-20 Estimate

$'000

2020-21 Estimate

$'000

Payments70,066 Repayment of Borrowings 18,821 315,638 # 18,054 235,829 072,654 Payment of Dividend 78,622 68,430 -13 75,788 83,278 91,741

142,720 Financing Payments 97,443 384,068 294 93,842 319,107 91,741


-29,443 24,932 185 -19,842 -30,107 -46,241


-14,668 808 106 -418 237 -80



54,536 39,868 -27 40,676 40,258 40,495


39,868 40,676 2 40,258 40,495 40,415



Operating Statement

user charges:

- the decrease of $13.119 million in the 2016-17 estimated outcome from the original budget is mainly due to lower than forecast water consumption and a lower CPI price increase; and

- the increase of $11.176 million in the 2017-18 Budget from the 2016-17 estimated outcome is mainly due to an increase in consumption volumes and price increases.

employee expenses: the decrease of $7.783 million in the 2016-17 estimated outcome from the original budget is mainly due reclassification of expenses to supplies and services.

supplies and services: the increase of $2.509 million in the 2016-17 estimated outcome from the original budget is mainly due to reclassification of expenses of $8.698 million from employee expenses and partially offset by $6.189 million in forecast efficiencies and rescheduling of operational maintenance programs to next financial year.

other expenses: the increase of $1.174 million in the 2017-18 Budget from the 2016-17 estimated outcome is mainly due to an increase in the rate of the Utilities Network Facilities Tax.

joint venture share of operating results:

- the increase of $8.990 million in the 2016-17 estimated outcome from the original budget is mainly due to higher than budgeted sales volumes, favourable gross margins and higher than forecast capital contributions; and

- the decrease of $8.432 million in the 2017-18 Budget from the 2016-17 estimated outcome is due to a decline in sales volumes and market share in the Retail market and accelerating the depreciation of Type 5-6 meters associated with the introduction of Power of Choice.

Balance Sheet

current receivables: the increase of $5.825 million in the 2016-17 estimated outcome from the original budget is due an increase in unread consumption and trade debtors.


current other assets: the decrease of $1.458 million in the 2016-17 estimated outcome from the original budget is due to lower than forecast prepayments.

non-current receivables: the increase of $13.389 million in the 2016-17 estimated outcome from the original budget is due to the reclassification of assets from non-current other assets.

intangible assets: the decrease of $21.650 million in the 2016-17 estimated outcome from the original budget is due to the unbudgeted sale of water licences.

non-current other assets: the decrease of $13.964 million in the 2016-17 estimated outcome from the original budget is due to reclassification of assets to other non-current receivables.

current interest bearing liabilities: the decrease of $294.047 million in the 2017-18 Budget from the 2016-17 estimated outcome relates to the maturity of debt instruments.

current other provisions: the increase of $4.345 million in the 2016-17 estimated outcome from the original budget and the decrease of $5.232 million in the 2017-18 Budget from the 2016-17 estimated outcome is due to movements in the provision for the interim dividend payable to the ACT Government and the provision for exit of the Comcare workers compensation scheme.

income tax payable: the decrease of $3.165 million in the 2016-17 estimated outcome from the original budget and the decrease of $1.428 million in the 2017-18 Budget from the 2016-17 estimated outcome predominately relates to reclassification on the deferred tax liability and movements in operating profit.

non-current interest bearing liabilities: the increase of $387.408 million in the 2017-18 Budget from the 2016-17 estimated outcome relates new borrowings to fund capital works program and refinancing of matured debt instruments.

non-current other provisions: the decrease of $387.258 million in the 201617 estimated outcome from the original budget is mainly due to the reclassification of the deferred tax liabilities to Deferred Tax Liability.

deferred tax liability: the increase of $400.844 million in the 2016-17 estimated outcome from the original budget is mainly due to reclassification of the deferred tax liability from non-current other provisions.


operating result for the period: the decrease of $6.027 million in the 2017-18 Budget from the 2016-17 estimated outcome is mainly due to a reduction in revenues from the Energy Investment.

Cash Flow Statement



INDEPENDENT COMPETITION AND REGULATORY COMMISSION – STATEMENT OF INTENT

The Independent Competition and Regulatory Commission (the Commission) is a Territory Authority established under the Independent Competition and Regulatory Commission Act 1997 (ICRC Act). The Commission is constituted under the ICRC Act by one or more standing commissioners and any associated commissioners appointed for particular purposes. Commissioners are statutory appointments and the current Commissioner is Senior Commissioner Joe Dimasi who has direct responsibility for delivery of the outcomes that are foreshadowed in this Statement of Intent.


The responsible Minister, Mr Andrew Barr MLA, was consulted during the preparation of the Statement of Intent.

The Statement of Intent, which focuses on the 2017-18 Budget year, has been developed in the context of a four year forward planning horizon to be incorporated, as far as practicable, into the Independent Competition and Regulatory Commission’s strategic and business planning processes.

The Independent Competition and Regulatory Commission 2017-18 Statement of Intent has been agreed between:

201718 Budget Statements 229 Independent Competition and Regulatory Commission

INDEPENDENT COMPETITION AND REGULATORY COMMISSION

As a result of the 2015 amendments to the Financial Management Act 1996, the budget statement for the Independent Competition and Regulatory Commission is its Statement of Intent.

PurposeThe Commission has responsibilities for a broad range of regulatory and utility administrative matters. The Commission is responsible under the Independent Competition and Regulatory Commission Act 1997 (ICRC Act) for regulating and advising government about pricing and other matters for monopoly, near-monopoly and ministerially declared regulated industries, providing advice on competitive neutrality complaints and government-regulated activities, and arbitrating infrastructure access disputes under the ICRC Act.

The Commission’s objectives are set out in sections 7 and 19L of the ICRC Act and section 3 of the Utilities Act 2000 (Utilities Act). Those objectives are:

promoting effective competition in the interests of consumers;

facilitating an appropriate balance between efficiency, environmental and social considerations;

ensuring non-discriminatory access to monopoly and near-monopoly infrastructure; and

when making a price direction in a regulated industry, to promote the efficient investment in, and efficient operation and use of regulated services for the long term interests of consumers in relation to price, quality, safety, reliability and security of the service.

The Utilities Act provides for the licensing of electricity, natural gas, water and sewerage utility services. In discharging responsibilities under this legislation, the Commission’s objectives are to:

encourage the provision of safe, reliable, efficient and high-quality utility services at reasonable prices;

minimise the potential for misuse of monopoly power and promote competition in the provision of utility services;

encourage long term investment, growth and employment in utility services; and

protect the interests of consumers.



General activities

In discharging its responsibilities under its enabling legislation the Commission conducts the following activities.

Water and sewerage services pricing arrangements

- As a regulated industry under the ICRC Act, prices for water and sewerage services in the ACT are determined by the Commission, or if reviewed and determined by an Industry Panel, are implemented by the Commission.

- The Treasurer tabled in the Legislative Assembly on 13 December 2016 the terms of reference for the making of a price direction for regulated water and sewerage services for the period 1 July 2018 to 30 June 2023. A draft decision is to be made available by 12 December 2017 and a final report by 1 May 2018.

Retail electricity pricing arrangements

- From 1 July 2012 responsibility for regulating retail electricity was substantially transferred to the Australian Energy Regulator (AER), except for technical regulation, complaints handling and retail electricity pricing. The Commission will, pursuant to ACT government policy, continue to determine retail prices for franchise electricity customers. The Commission will release its decision on retail electricity prices for small customers on standard offer contracts in June 2017. That decision will set the retail price of electricity for the period 1 July 2017 to 30 June 2020, subject to an annual adjustment for any pass through events.

- The Commission expects to examine the arguments for an adjustment to the regulated retail electricity prices due to pass through events in May 2018.

Competition policy

- In 2017-18 the Commission will respond to the ACT Government’s requirements for advice on competition policy matters.

- In 2017-18 the Commission will also continue its role in handling competitive neutrality complaints, as described in the National Competition Policy Agreements and the ACT Competitive Neutrality Statement.

Utilities regulatory regime

- The Commission has a statutory responsibility to ensure that utilities authorised to provide services in the Territory comply with their obligations in and arising from licence conditions and industry and technical codes made under the Utilities Act. During 2017-18, the ACT licensing regime will continue to apply to electricity and gas distribution activities and water and sewerage services. The Commission will continue to assess licence applications, maintain the licensing regime, and monitor and report on retail utilities’ compliance with licence conditions.


- In 2017-18 the Commission will assess the application by Icon Water for an industry code covering capital contributions for water and sewerage infrastructure upgrades and will begin work on updating utilities licences, codes and guidelines including the provisions of the utilities consumer protection code.

Risks

Effective risk management is one of the keys to achieving the Commission’s purpose. Managing risk to be a fundamental activity, performed at all levels.

The Commission has developed an enterprise wide risk management approach to identifying, managing or mitigating risks. Specific areas of risk include the following.

Operational risk

- Operational risk can arise from internal factors such as people or from inadequate internal processes systems. Risks can also arise from external events such as non-performance under contracts. The Commission has instituted policies and procedures that manage third-party risk through the evaluation of risk factors including the performance evaluation of contractors. The cyclical nature of the Commission’s work creates particular challenges in managing the workload and the pressure placed on staff given the deadlines associated with the Commission’s decision making responsibilities.

- Organisational risk arises due to the sustainability of corporate knowledge and the Commission’s small but specialised staff. The Commission faces the on-going challenge associated with the risk of loss of organisational capacity and knowledge when staff are absent or take up opportunities elsewhere.

Financial risk

- Financial risk arises from inadequate cash reserves to meet the Commission’s financial commitments. The Commission has appropriate risk management procedures to identify and manage financial risk including actively monitoring credit risk in areas such as cash and other receivables appropriate to its nature, scale and size.

2017-18 priorities and next three financial yearsThe strategic and operational issues to be pursued in 2017-18 include:

conducting an investigation and determining the price for water and sewerage services for the period 2018-2023;

overseeing the annual adjustment to the pricing determination for retail electricity for small customers on standard retail contracts;

overseeing the regulatory regime established under the Utilities Act, including licensing, industry code development, including a redraft of the consumer protection code and compliance monitoring and reporting on utility compliance and performance;


recovering of annual utility licence fees and administering the annual energy industry levy, including revision of the levy model once recent legislative changes to the Utilities Act 2000 come into effect; and

responding to the Government’s requirements for advice on competition policy matters, and discharging the Commission’s statutory role in competitive neutrality complaints handling.

The strategic and operational issues to be pursued in the next three financial years include:

overseeing the annual adjustments, including pass-through events, to the pricing determination for retail electricity for small customers on standard contracts for the financial years 2018-2019 and 2019-2020;

undertaking the necessary research and analysis in respect of any regulatory reset principles well in advance of the next price investigation into retail electricity prices;

responding to any terms of references issued by the Government in relation to undertaking a pricing investigation for the determination of the price of electricity for small customers for the regulatory period applying from 1 July 2020;

undertaking the annual adjustment to water and sewerage services prices for the financial years 2019-2020 and 2020-2021;

overseeing the regulatory regime established under the Utilities Act, including licensing, amending existing licences to take account of legislative changes, industry code development, administration of the energy levy and compliance monitoring and reporting on utility compliance and performance; and

responding to the Government’s requests for advice on competition policy matters, and discharging the Commission’s statutory role in competitive neutrality complaints handling.

Estimated employment level


2015-16Actual

Outcome1

2016-17Budget

2016-17Estimated Outcome1

2017-18Budget

Staffing (FTE) 6 62 92 9

Note(s):1. These figures relate to 30 June staffing levels.2. The variation between the 2016-17 Budget and the 2016-17 estimated outcome is due to the Commission recruiting

additional staff to meet the increased workload in 2017-18.


Table 2: Key performance indicators for 2017-18 and 2018-19 to 2020-21

Item Measure


2017-18 2018-19 to 2020-21

Water and sewerage services pricing.

Price determination. Undertaking review of any matters identified as reset principles. Annual price adjustments.

Retail electricity pricing. Price adjustment. Undertaking review of any matters identified as reset principles.Price adjustments and price determinations for regulatory period from 1 July 2020.

Utilities compliance and performance.

1 report.1 Annual reports.

Utility licence fees (water, sewerage services, and energy sector utilities not subject to energy industry levy).

Licence fees determination and collection.

Annual licence fee determinations as required and annual collection of licence fee.

Utility levies (energy sector). 3 determinations. Annual levy determinations as required.

Advice on referred matters. Subject to receipt of references. Subject to receipt of references.

Note(s):1. The Commission will include the compliance and performance report for licensed electricity, gas, water and sewerage

services utilities as part of our Annual Report.

Assessment of performance against 2016-17 objectives

Table 3: Comparison of estimated performance at 30 June 2017 and the Statement of Intent for 2016-17

Item Measure Estimated performance

Water and sewerage services pricing.

Price adjustments, tariff review and seeking new terms of reference.

Completed price adjustment, release of water tariff review issues paper and final report. Terms of reference received and the release of issues paper on price investigation.

Retail electricity pricing. Price determination. Release of an issues paper and draft and final reports into the price investigation. Completed 1 price determination.

Utilities compliance and performance.

1 report.1 Completed 1 report.

Utility licence fees (water, sewerage services , and energy sector utilities not subject to energy industry levy).

1 determination. Completed 1 determination.

Utility levies (energy sector). 3 determinations. Completed 3 determinations.Advice on referred matters. Subject to receipt of references. No additional references were

received in 2016-17.


Note(s):1. We will include the compliance and performance report for 2016-17 for licensed electricity, gas, water and sewerage

utilities as an appendix of our Annual Report for 2016-17.




$'000

2017-18 Budget

$'000

2018-19 Estimate

$'000

2019-20 Estimate

$'000

2020-21 Estimate

$'000

2016-17 Budget 312 346 351 356 356

2017-18 Budget Technical AdjustmentsRevised Indexation Parameters - (1) (1) (1) 5Revised Superannuation Parameters - 5 2 (1) (1)General Savings (312) - - - -

2017-18 Budget - 350 352 354 360

Monitoring and reportingThe Independent Competition and Regulatory Commission shall satisfy the requirements of the Chief Minister’s Annual Reports Directions. The Independent Competition and Regulatory Commission’s Annual Report will, amongst other things, report against the requirements of this Statement of Intent.

The Financial Management Act 1996 authorises the Treasurer to obtain financial and other statements from Independent Competition and Regulatory Commission for a stated period including annual, quarterly and monthly reporting.

Annual reporting

As part of preparations for end of year reporting, the Chief Minister, Treasury and Economic Development Directorate (CMTEDD) will advise the dates when the following documents are required at the CMTEDD and at the Auditor-General's Office:

Certified financial statements;

Management discussion and analysis;

A full and accurate set of audited financial records for the preceding financial year in the form requested; and




Table 5: Independent Competition and Regulatory Commission: Operating Statement

2016-17 Budget

$'000


$'000

2017-18 Budget

$'000

Var%

2018-19 Estimate

$'000

2019-20 Estimate

$'000

2020-21 Estimate

$'000

Revenue312 Controlled Recurrent

Payments0 350 # 352 354 360

639 Taxes, Fees and Fines 515 374 -27 665 674 684796 User Charges 952 1,798 89 417 660 432

30 Interest 28 28 - 28 29 30

1,777 Total Revenue 1,495 2,550 71 1,462 1,717 1,506

Expenses 943 Employee Expenses 831 1,274 53 745 909 659102 Superannuation Expenses 87 129 48 94 81 94632 Supplies and Services 703 1,068 52 544 647 673


51 51 - 51 51 51

1,728 Total Expenses 1,672 2,522 51 1,434 1,688 1,477

49 Operating Result -177 28 116 28 29 29


-177 28 116 28 29 29


Table 6: Independent Competition and Regulatory Commission: Balance Sheet

Budgetat

30/6/17 $'000

Est.Outcome as at

30/6/17 $'000

Budgetat

30/6/18 $'000

Var%

Estimateat

30/6/19 $'000

Estimateat

30/6/20 $'000

Estimateat

30/6/21 $'000

Current Assets1,656 Cash and Cash Equivalents 948 1,034 9 1,551 1,403 1,725

89 Receivables 431 431 - 0 235 0



Equipment247 197 -20 147 97 47

246 Total Non Current Assets 247 197 -20 147 97 47

1,991 TOTAL ASSETS 1,626 1,662 2 1,698 1,735 1,772

Current Liabilities74 Payables 104 105 1 106 107 108

203 Employee Benefits 129 128 -1 127 126 125

277 Total Current Liabilities 233 233 - 233 233 233

Non Current Liabilities32 Employee Benefits 14 21 50 28 35 4268 Other Liabilities 66 67 2 68 69 70


377 TOTAL LIABILITIES 313 321 3 329 337 345

1,614 NET ASSETS 1,313 1,341 2 1,369 1,398 1,427

REPRESENTED BY FUNDS EMPLOYED1,614 Accumulated Funds 1,313 1,341 2 1,369 1,398 1,427



Table 7: Independent Competition and Regulatory Commission: Statement of Changes in Equity

Budgetat

30/6/17 $'000

Est.Outcome as at

30/6/17 $'000

Budgetat

30/6/18 $'000

Var%

Estimateat

30/6/19 $'000

Estimateat

30/6/20 $'000

Estimateat

30/6/21 $'000



1,490 1,313 -12 1,341 1,369 1,398


Economic Flows-177 28 116 28 29 29


-177 28 116 28 29 29



1,313 1,341 2 1,369 1,398 1,427


Table 8: Independent Competition and Regulatory Commission: Cash Flow Statement

2016-17 Budget

$'000


$'000

2017-18 Budget

$'000

Var %

2018-19 Estimate

$'000

2019-20 Estimate

$'000

2020-21 Estimate

$'000


312 Controlled Recurrent Payments

0 350 # 352 354 360

639 Taxes, Fees and Fines 798 384 -52 665 674 684796 User Charges 400 1,928 851 424 666

30 Interest Received 28 28 - 28 29 3045 Other 50 51 2 48 45 45

1,822 Operating Receipts 1,276 2,741 115 1,944 1,526 1,785

Payments943 Employee 840 1,274 52 745 909 899104 Superannuation 89 131 47 96 85 98666 Supplies and Services 764 1,250 64 586 680 466

1,713 Operating Payments 1,693 2,655 57 1,427 1,674 1,463


-417 86 121 517 -148 322


-417 86 121 517 -148 322


1,365 948 -31 1,034 1,551 1,403


948 1,034 9 1,551 1,403 1,725



Operating Statement

controlled recurrent payments:

- the decrease of $0.312 million (100 per cent) in the 2016-17 estimated outcome from the original budget is mainly due to the Commission utilising its accumulated cash reserves to fund energy regulatory activities instead of drawing the funds appropriated for these activities; and

- the increase of $0.350 million in the 2017-18 Budget from the 2016-17 estimated outcome is mainly due to the Commission funding energy regulatory activities from appropriated funds rather than utilising its cash reserves.


user charges The increase of $0.846 million (89 per cent) in the 2017-18 Budget from the 2016-17 estimated outcome is mainly due to the recovery of costs for the investigation into, and price direction determination for, regulated water and sewerage services provided by Icon Water Limited in the ACT for the period 1 July 2018 to 30 June 2023.

employee expenses: the increase of $0.443 million (53 per cent) in the 2017-18 Budget from the 2016-17 estimated outcome is mainly due to additional staff being required for the investigation into, and price direction determination for, regulated water and sewerage services provided by Icon Water Limited in the ACT for the period 1 July 2018 to 30 June 2023.

supplies and services: the increase of $0.365 million (52 per cent) in the 2017-18 Budget from the 2016-17 estimated outcome is mainly due to consultant being engaged to assist with the investigation into, and price direction determination for, regulated water and sewerage services provided by Icon Water Limited in the ACT for the period 1 July 2018 to 30 June 2023.

Balance Sheet

cash and cash equivalents: the decrease of $0.708 million (43 per cent) in the 2016-17 estimated outcome from the original budget is mainly due to the Commission changing its accounting policy relating to Utilities Licence Fees, which resulted in cash collected for other agencies no longer being held in the Commission’s bank account. Funds have also reduced in 2016-17 due to the Commission using its cash reserves to fund energy regulatory activities instead of drawing the funds appropriated for these activities.

receivables: the increase of $0.342 million (384 per cent) in the 2016-17 estimated outcome from the original budget is mainly due to costs to be recovered for the investigation into, and price direction determination for, regulated water and sewerage services provided by Icon Water Limited in the ACT for the period 1 July 2018 to 30 June 2023.




LIFETIME CARE AND SUPPORT FUND

PurposeThe Lifetime Care and Support Fund (LTCS Fund) was established under the Lifetime Care and Support (Catastrophic Injuries) Act 2014 (LTCS Act) and commenced operations on 1 July 2014. The LTCS Fund reflects the financial operations of the Lifetime Care and Support Scheme (LTCS Scheme).

The LTCS Scheme provides on-going treatment and care to people who have been catastrophically injured as a result of a motor accident in the Australian Capital Territory, on or after 1 July 2014, on a no-fault basis.

Amendments to the LTCS Act extended the LTCS Scheme to also cover catastrophically injured workers for injuries occurring on or after 1 July 2016 in the course of the worker’s employment in the ACT.

The LTCS Scheme is funded by two levies: a levy on compulsory third-party insurance policies and a levy on workers’ compensation insurers and self-insurers.

2017-18 PrioritiesThe Lifetime Care and Support Fund will be pursuing a number of strategic and operational matters in 2017-18 including:

issuing / amending guidelines and determinations when required under the LTCS Act;

collecting feedback from participants on their expectations and experience with the LTCS Scheme;

continuing to improve procedures for the efficient and effective delivery of the LTCS Scheme; and

undertaking investments in accordance with the fund’s Investment Strategy.

Estimated Employment LevelThe functions of the LTCS Scheme are performed by officers of the Chief Minister, Treasury and Economic Development Directorate (CMTEDD) and those employees are included in CMTEDD’s FTE levels. The LTCS Fund reimburses CMTEDD for the salary and superannuation expenses associated with the staff allocated to carry out the LTCS Scheme’s functions.

201718 Budget Statements 243 Lifetime Care and Support Fund



Achievement of investment return objective

To achieve a long-term annualised return of CPI + 3.5 per cent.1

Note:1. This indicator is the LTCS Fund investment portfolio return since the base performance year of 2016-17. The objective

is to achieve an annualised portfolio return at or above CPI + 3.5 per cent over the long-term, calculated since the base year. The portfolio return is calculated as the annualised performance of each individual financial year return.

Output Classes (Territorial)

EBT Class 1: Lifetime Care and Support Fund

Table 1: EBT Class 1: Lifetime Care and Support Fund


$'000 $'000

Total Cost1 2,634 15,071Payment for Expenses on Behalf of the Territory 0 0

Note(s):1. Total cost includes nil depreciation and amortisation in 2016-17 and 2017-18.

EBT 1.1: Lifetime Care and Support Fund

The LTCS Fund reflects the operation of the LTCS Scheme to provide on-going care to people who have been catastrophically injured as a result of a motor accident in the ACT and catastrophically injured workers injured in the course of employment in the ACT.

The key outputs to be delivered in 2017-18 include:

deciding the eligibility of applicants to the LTCS Scheme in accordance with Part 4 of the LTCS Act and the LTCS Guidelines;

assessing the treatment and care needs of participants in the LTCS Scheme in accordance with Part 5 of the LTCS Act;

collecting feedback from participants on their expectations and experience with the LTCS Scheme;

paying all reasonable expenses incurred by or on behalf of an injured person in relation to the injured person’s assessed treatment and care needs in accordance with Part 6 and Part 9 of the LTCS Act;

undertaking investments in accordance with the fund’s Investment Strategy; and

determining LTCS Levies in accordance with Part 10 of the LTCS Act.


Table 2: EBT Class 1.1: Lifetime Care and Support Fund


$'000 $'000

Total Cost1 2,634 15,071Payment for Expenses on Behalf of the Territory 0 0

Note(s):1. Total cost includes nil depreciation and amortisation in 2016-17 and 2017-18.


EBT Class 1: Lifetime Care and Support Fund

EBT 1.1: Lifetime Care and Support Fund

Table 3: Accountability Indicators EBT 1.1

2016-17Targets


2017-18Targets

Provision of LTCS Scheme in the ACTa. Independent actuarial review to advise on the

required fund contributions 11 1 1

b. Determine LTCS Levies 2 2 2 2c. Undertake an annual client feedback process 3 1 1 1d. LTCS Guidelines available – include workers 4 1 1 N/Ae. Application Form available – for workers 5 1 1 N/Af. Difference between the investment earning rate and

the benchmark is to be ≥ 0,6, 7≥0 ≤0 N/A

g. Difference between the investment earning rate and the benchmark is to be = 0,6, 8

N/A N/A = 0

Note(s):1. In accordance with section 83(3) of the LTCS Act.2. In accordance with section 84 of the LTCS Act. 3. This indicator requires the LTCS commissioner to seek formal feedback from Scheme participants during the financial

year. The focus and process for each year’s feedback will be decided by the LTCS commissioner.4. With the extension of the LTCS Scheme in 2016-17 to include work injuries, the Guidelines needed to be amended to

include workers. Given the relevant Guidelines have been amended, this indicator has been discontinued for 2016-17.5. With the extension of the LTCS Scheme in 2016-17 to include work injuries, an Application Form specific for work

injuries needed to be issued. Given the Application Form has now been issued, this indicator has been discontinued for 2016-17.

6. The difference between the actual annual portfolio investment earnings rate (gross of fees) and the established performance benchmark is a measure of the relative performance of the investment fund(s) to the benchmark.

7. In 2016-17, the LTCS investment return will be less than the benchmark due to the current small size of the funds total investment relative to the size of each investment. This means there is currently a material impact on the fund’s annual returns from the transaction costs or ‘buy-sell spread’ payable each time funds are invested). This is likely to persist for some years until the fund reaches a certain size and maturity relative to the size of the new investments being made in a given year.

8. The indicator has been amended in 2017-18 as the unit funds that the LTCS fund invests in is a passive fund (it largely matches the companies included in the market indices) and it is unlikely to exceed the benchmark return performance.



Table 4: Lifetime Care and Support Fund: Statement of Income and Expenses on Behalf of the Territory

2016-17 Budget

$'000


$'000

2017-18 Budget

$'000

Var%

2018-19 Estimate

$'000

2019-20 Estimate

$'000

2020-21 Estimate

$'000

Revenue13,744 Taxes, Fees and Fines 13,744 13,814 1 14,350 14,899 15,463

31 Interest 359 90 -75 32 40 481,073 Other Revenue 524 1,364 160 2,400 3,074 3,768

14,848 Total Revenue 14,627 15,268 4 16,782 18,013 19,279

Expenses 538 Supplies and Services 539 567 5 598 625 657

14,220 Other Expenses 2,095 14,504 592 15,769 17,053 18,393

14,758 Total Expenses 2,634 15,071 472 16,367 17,678 19,050

90 Operating Result 11,993 197 -98 415 335 229


11,993 197 -98 415 335 229


Table 5: Lifetime Care and Support Fund: Statement of Assets and Liabilities on Behalf of the Territory

Budgetat

30/6/17 $'000

Est.Outcome as at

30/6/17 $'000

Budgetat

30/6/18 $'000

Var%

Estimateat

30/6/19 $'000

Estimateat

30/6/20 $'000

Estimateat

30/6/21 $'000

Current Assets1,800 Cash and Cash Equivalents 3,920 1,600 -59 2,000 2,400 2,900

825 Receivables 898 898 - 898 898 8980 Other Assets 200 200 - 200 200 200

2,625 Total Current Assets 5,018 2,698 -46 3,098 3,498 3,998

Non Current Assets27,999 Investments 27,000 42,666 58 56,265 70,328 84,851

27,999 Total Non Current Assets 27,000 42,666 58 56,265 70,328 84,851

30,624 TOTAL ASSETS 32,018 45,364 42 59,363 73,826 88,849

Current Liabilities155 Payables 279 279 - 279 279 279

2,403 Other Provisions 1,356 2,185 61 2,924 3,600 4,299


Non Current Liabilities29,539 Other Provisions 18,302 30,622 67 43,467 56,919 71,014



-1,473 NET ASSETS 12,081 12,278 2 12,693 13,028 13,257


-1,473 Accumulated Funds 12,081 12,278 2 12,693 13,028 13,257

-1,473 TOTAL FUNDS EMPLOYED 12,081 12,278 2 12,693 13,028 13,257


Table 6: Lifetime Care and Support Fund: Statement of Changes in Equity on Behalf of the Territory

Budgetat

30/6/17 $'000

Est.Outcome as at

30/6/17 $'000

Budgetat

30/6/18 $'000

Var%

Estimateat

30/6/19 $'000

Estimateat

30/6/20 $'000

Estimateat

30/6/21 $'000

Opening Equity-1,563 Opening Accumulated Funds 88 12,081 # 12,278 12,693 13,028

-1,563 Balance at the Start of the Reporting Period

88 12,081 # 12,278 12,693 13,028

Comprehensive Income90 Operating Result – Including

Economic Flows11,993 197 -98 415 335 229


11,993 197 -98 415 335 229

Closing Equity-1,473 Closing Accumulated Funds 12,081 12,278 2 12,693 13,028 13,257

-1,473 Balance at the end of the Reporting Period

12,081 12,278 2 12,693 13,028 13,257


Table 7: Lifetime Care and Support Fund: Cash Flow Statement on Behalf of the Territory

2016-17 Budget

$'000


$'000

2017-18 Budget

$'000

Var %

2018-19 Estimate

$'000

2019-20 Estimate

$'000

2020-21 Estimate

$'000


13,744 Taxes, Fees and Fines 13,744 13,814 1 14,350 14,899 15,46331 Interest Received 359 90 -75 32 40 48

536 Distribution from Investments with the Territory Banking Account

523 682 30 1,200 1,537 1,883

14,311 Operating Receipts 14,626 14,586 .. 15,582 16,476 17,394

Payments537 Supplies and Services 538 568 6 598 625 651

1,622 Other 433 1,356 213 2,184 2,925 3,6022,159 Operating Payments 971 1,924 98 2,782 3,550 4,253


13,655 12,662 -7 12,800 12,926 13,141


Payments11,452 Purchase of Investments 27,000 14,982 -45 12,400 12,526 12,64111,452 Investing Payments 27,000 14,982 -45 12,400 12,526 12,641


-27,000 -14,982 45 -12,400 -12,526 -12,641


-13,345 -2,320 83 400 400 500


17,265 3,920 -77 1,600 2,000 2,400


3,920 1,600 -59 2,000 2,400 2,900



Statement of Income and Expenses on Behalf of the Territory

interest revenue:

- the increase of $0.328 million in the 2016-17 estimated outcome is mainly due to the later than budgeted timing of the investment of funds not required in the short-term; and


- the decrease of $0.269 million in the 2017-18 Budget is mainly due to the investment of funds in line with the Investment Strategy, resulting in a lower cash at bank.

other revenue:

- the decrease of $0.549 million in the 2016-17 estimated outcome from the original budget is mainly due to the later than budgeted timing of the investment of funds (resulting in lower returns during 2016-17); and

- the increase of $0.840 million in the 2017-18 Budget is due to returns on a higher quantum of funds invested.

other expenses: are associated with the provision for estimated future treatment and care costs of LTCS Scheme participants based on recent actuarial projections and the unwinding of the discount rate associated with the estimation of the present value of those future costs. The 2017-18 Budget includes unwinding of discount expenses ($0.926 million) attributable to the change in liabilities as they become one year closer to payment.

- The decrease of $12.125 million in the 2016-17 estimated outcome from the original budget is mainly due to a decrease in the estimated number of new participants entering the Scheme in 2016-17, based on year-to-date experience.

- The increase of $12.409 million in the 2017-18 Budget from the 2016-17 estimated outcome is due to 2017-18 reflecting the actuarial estimate for expenses for a number of new catastrophically injured motor vehicle and workers participants.

Statement of Assets and Liabilities on Behalf of the Territory

cash and cash equivalents:

- the increase of $2.120 million in the 2016-17 estimated outcome from the original Budget is due to the investment strategy followed during 2017-18 of making smaller on-going investments; and

- The decrease of $2.320 million in the 2017-18 Budget from the 2016-17 estimated outcome is mainly due to all the cash not required for estimated short term operational needs being invested.

current and non-current investments with the Territory Bank Account: the increase of $15.666 million in the 2017-18 estimated outcome from the original budget is mainly due to the investment of collected funds to provide for estimated new participants. Funds are collected to provide for the estimated whole of life costs of participants in the year they are accepted into the Scheme.

other provisions:

- the decrease of $12.284 million in the 2016-17 estimated outcome from the original budget predominately relates to a decrease in the estimated number of new participants entering the Scheme in 2016-17, based on year-to-date experience; and


- the increase of $13.149 million in the 2017-18 Budget is mainly due to forecasting for new participants in the Scheme.

Statement of Changes in Equity and Cash Flow Statement on behalf of the Territory



SUPERANNUATION PROVISION ACCOUNT

PurposeThe Superannuation Provision Account is established to recognise the investment assets and defined benefit employer superannuation liabilities of the Territory which includes past and current ACT employees who are members of the Australian Government’s Commonwealth Superannuation Scheme (CSS) and Public Sector Superannuation Scheme (PSS) and Members of the Legislative Assembly Defined Benefit Superannuation Scheme.

The Chief Minister, Treasury and Economic Development Directorate (CMTEDD), through the financial operations of the SPA, assists the Government to effectively manage the defined benefit employer superannuation liabilities of the Territory. This includes the responsibility for the management of the financial investment assets set aside to fund those liabilities.


completing the triennial actuarial review of the defined benefit employer superannuation liabilities using salary and membership data as at 30 June 2017;

managing the Investment Plan and the financial investment assets of the SPA;

managing and reporting on the Government’s Responsible Investment policy; and

procuring external service providers as required.



2015-16Actual

Outcome

2016-17Budget


2017-18Budget

Staffing (FTE) 4 4 4 4

201718 Budget Statements 253 Superannuation Provision Account



Achievement of Investment Return Objective

To achieve a long-term investment return of CPI + 4.75 per cent per annum.1

Figure 1: Strategic Indicator 1: Investment Return

Note(s):1. This indicator measures the annual SPA portfolio investment return since the base performance financial year of 1996-

1997. The objective is to achieve an investment return of CPI + 4.75 per cent per annum over the long term, calculated since the base financial year. The investment return objective has been reduced from CPI + 5 per cent.



Funding the Defined Benefit Superannuation Liability

To fully fund the defined benefit superannuation liability by 30 June 2030.1

Figure 2: Strategic Indicator 2: Liability Funding

Note(s):1. This indicator measures the percentage of the defined benefit superannuation liabilities funded by financial

investment assets. The funding objective is to increase the liability funding percentage over time with 100 per cent coverage by 30 June 2030. The liability funding percentage is calculated by comparing the total value of investment assets to the total value of the defined benefit superannuation liability based on a long term discount rate assumption of 6 per cent.



Output Class 1: Superannuation Provision Account

Table 2: Output Class 1: Superannuation Provision Account


$'000 $'000

Total Cost 640,155 500,852Payment for Expenses on Behalf of the Territory 0 0

Output 1.1: Superannuation Provision Account

This output involves the management of the Territory’s defined benefit employer superannuation liabilities and financial investment assets.

The key outputs to be delivered in 2017-18 include:

managing the Investment Plan and reporting on the financial investment assets set aside to fund the Territory’s defined benefit employer superannuation liabilities;

managing and reporting on the Government’s Responsible Investment Policy;

completing the Principles for Responsible Investment (PRI) annual reporting assessment which is mandatory for the Territory as a signatory to the PRI;

completing the triennial actuarial review of the Territory’s CSS/PSS defined benefit employer superannuation liability;

managing the defined benefit superannuation liability funding plan and emerging cost payments to the Commonwealth in respect of the Territory’s share of employee retirement benefits;

completing the annual Member Information Statements for the Members of the Legislative Assembly Defined Benefit Superannuation Scheme, with calculation and settlement of benefit determinations as required; and

budgeting, managing and reporting on the financial operations of the SPA.



Output Class 1: Superannuation Provision Account

Output 1.1: Superannuation Provision Account


2016-17Targets


2017-18Targets

a. Difference between the investment earnings rate and the benchmark is to be >01

>0 >0 >0

b. Exposure to directly-owned share investments related to the manufacture of Tobacco, Cluster Munitions and Land Mines2

0% 0% 0%

c. The exercising of ownership voting rights for directly-owned shares3

>95% >95% >95%

d. Completion of the Principles for Responsible Investment Annual Reporting and Assessment Framework4

1 1 1

e. Completion of Annual Actuarial Review5 1 1 1f. Completion and delivery of Monthly

Financial Reporting612 12 12

g. Completion and delivery of unqualified Annual Financial Statements7

1 1 1

h. Completion of Annual Budget Estimates8 1 1 1i. Preparation of MLA Member

Superannuation Statements94 4 2

Note(s):1. The difference between the actual portfolio investment return (gross of fees) and the established portfolio

performance benchmark is a measure of relative performance. The result is calculated by subtracting the benchmark performance from the portfolio’s gross performance. The variance is measured by the percentage difference between the actual performance and the benchmark.

2. The investment portfolio is monitored to ensure it is not exposed to any prohibited investments, in accordance with the Government’s Responsible Investment Policy. For performance measurement, the actual portfolio direct share holdings will be compared with the prevailing prohibited shares list at the end of each month. The exposure measure will be the weighted value of any prohibited share investments on the total value of the share portfolio.

3. As required by the Government’s Responsible Investment Policy, voting rights in relation to directly-owned shares will be exercised in accordance with the Government’s share voting policy. The target is that more than 95 per cent of all eligible voting items in the year will be cast in relation to the total voting items. The measure will be total actual votes cast compared to total eligible voting items.

4. The Territory is a signatory to the Principles for Responsible Investment (PRI). Completing the annual Reporting Framework via the online reporting tool is a mandatory requirement for all signatories. The reporting framework is designed to provide accountability and transparency around signatories and their responsible investment activities.

5. An annual actuarial review of the Territory’s defined benefit (CSS/PSS) employer superannuation liabilities will be completed and included in the budget estimates.

6. Monthly financial reporting involves the preparation of accrual financial statements. The monthly financial reporting will not be counted for the year if the financial statements are not prepared after the end of each month.

7. Involves the preparation of the previous year’s annual financial statements for auditing and inclusion in the CMTEDD annual report. The objective is to receive an unqualified audit opinion during the year.

8. Involves the preparation of annual budget estimates for inclusion in the annual Territory Budget.


9. Preparation of annual Member Information Statements for those Members of the Legislative Assembly who have a defined benefit superannuation entitlement as at 30 June in accordance with the Legislative Assembly (Members’ Superannuation) Act 1991. Any individual Member Information Statement for the previous financial year not delivered by end September of the Budget year will not be counted in the result.


Table 4: Changes to appropriation – Capital Injections, Territorial


$'000

2017-18 Budget

$'000

2018-19 Estimate

$'000

2019-20 Estimate

$'000

2020-21 Estimate

$'000

2016-17 Budget 155,525 174,013 192,830 288,251 288,251

2017-18 Budget Policy AdjustmentsAdditional funding to match Benefit Payment

Projections- - - - 20,513

Revised Funding Profile – Superannuation Funding Plan

- 2,136 1,717 852 (720)

2017-18 Budget 155,525 176,149 194,547 289,103 308,044



Table 5: Superannuation Provision Account: Statement of Income and Expenses on Behalf of the Territory

2016-17 Budget

$'000


$'000

2017-18 Budget

$'000

Var%

2018-19 Estimate

$'000

2019-20 Estimate

$'000

2020-21 Estimate

$'000

Revenue3,855 Interest 3,320 2,634 -21 2,721 2,890 3,099

50,990 Dividend Revenue 51,043 52,255 2 51,333 54,536 58,48136,391 Distribution from Financial

Investments34,738 36,851 6 45,265 48,089 51,568

8,677 Distribution from Investments with the Territory Banking Account

14,500 9,122 -37 6,790 7,213 7,735

164,275 Other Revenue 254,799 172,290 -32 181,025 193,387 207,375

264,188 Total Revenue 358,400 273,152 -24 287,134 306,115 328,258

Expenses 496 Employee Expenses 488 498 2 508 518 529

584,971 Superannuation Expenses 603,189 490,590 -19 499,308 507,510 515,2984,655 Supplies and Services 4,689 4,808 3 4,927 5,050 5,1754,996 Other Expenses 31,789 4,956 -84 5,107 5,462 5,867

595,118 Total Expenses 640,155 500,852 -22 509,850 518,540 526,869


Other Comprehensive IncomeItems that will not be Reclassified Subsequently to Profit or Loss

3,815,947 Superannuation Prior Year Actuarial Movement

4,959,486 0 -100 0 0 0

3,815,947 Total Other Comprehensive Income

4,959,486 0 -100 0 0 0

3,485,017 Total Comprehensive Income

4,677,731 -227,700 -105 -222,716 -212,425 -198,611


Table 6: Superannuation Provision Account: Statement of Assets and Liabilities on Behalf of the Territory

Budgetat

30/6/17 $'000

Est.Outcome as at

30/6/17 $'000

Budgetat

30/6/18 $'000

Var%

Estimateat

30/6/19 $'000

Estimateat

30/6/20 $'000

Estimateat

30/6/21 $'000


5,726 Receivables 3,165 3,165 - 3,165 3,165 3,165


Non Current Assets3,597,151 Investments 3,677,331 3,864,674 5 4,065,683 4,359,948 4,675,759


3,627,877 TOTAL ASSETS 3,689,720 3,877,533 5 4,079,046 4,374,049 4,690,652

Current Liabilities1,212 Payables 0 0 - 0 0 0

249,202 Employee Benefits 251,365 269,775 7 289,343 308,296 329,688


Non Current Liabilities5,998,590 Employee Benefits 5,877,823 6,098,777 4 6,308,891 6,508,263 6,694,041


6,249,004 TOTAL LIABILITIES 6,129,188 6,368,552 4 6,598,234 6,816,559 7,023,729

-2,621,127 NET ASSETS -2,439,468 -2,491,019 -2 -2,519,188 -2,442,510 -2,333,077


-2,621,127 Accumulated Funds -2,439,468 -2,491,019 -2 -2,519,188 -2,442,510 -2,333,077

-2,621,127 TOTAL FUNDS EMPLOYED -2,439,468 -2,491,019 -2 -2,519,188 -2,442,510 -2,333,077


Table 7: Superannuation Provision Account: Statement of Changes in Equity on Behalf of the Territory

Budgetat

30/6/17 $'000

Est.Outcome as at

30/6/17 $'000

Budgetat

30/6/18 $'000

Var%

Estimateat

30/6/19 $'000

Estimateat

30/6/20 $'000

Estimateat

30/6/21 $'000

Opening Equity-6,261,669 Opening Accumulated Funds -7,272,724 -2,439,468 66 -2,491,019 -2,519,188 -2,442,510

-6,261,669 Balance at the Start of the Reporting Period

-7,272,724 -2,439,468 66 -2,491,019 -2,519,188 -2,442,510

Comprehensive Income3,815,947 Superannuation Prior Year

Actuarial Movement4,959,486 0 -100 0 0 0

-330,930 Operating Result - Including Economic Flows

-281,755 -227,700 19 -222,716 -212,425 -198,611

3,485,017 Total Comprehensive Income

4,677,731 -227,700 -105 -222,716 -212,425 -198,611




155,525 176,149 13 194,547 289,103 308,044

Closing Equity-2,621,127 Closing Accumulated Funds -2,439,468 -2,491,019 -2 -2,519,188 -2,442,510 -2,333,077

-2,621,127 Balance at the end of the Reporting Period

-2,439,468 -2,491,019 -2 -2,519,188 -2,442,510 -2,333,077


Table 8: Superannuation Provision Account: Cash Flow Statement on Behalf of the Territory

2016-17 Budget

$'000


$'000

2017-18 Budget

$'000

Var %

2018-19 Estimate

$'000

2019-20 Estimate

$'000

2020-21 Estimate

$'000


3,855 Interest Received 3,320 2,634 -21 2,721 2,890 3,0998,677 Distribution from

Investments with the Territory Banking Account

22,932 9,122 -60 6,790 7,213 7,735

50,990 Dividends 51,043 52,255 2 51,333 54,536 58,48136,391 Distribution from Financial

Investments34,738 36,851 6 45,265 48,089 51,568

989 Other 1,084 1,048 -3 1,036 1,083 1,141100,902 Operating Receipts 113,117 101,910 -10 107,145 113,811 122,024

Payments485 Employee 477 487 2 497 507 518

230,612 Superannuation 232,985 251,237 8 269,637 289,196 308,1394,655 Supplies and Services 5,797 4,808 -17 4,927 5,050 5,1754,996 Other 4,789 4,956 3 5,107 5,462 5,867

240,748 Operating Payments 244,048 261,488 7 280,168 300,215 319,699


-130,931 -159,578 -22 -173,023 -186,404 -197,675


0 Proceeds from Sale/Maturity of Investments

0 295,711 # 0 0 0

0 Investing Receipts 0 295,711 # 0 0 0

Payments15,679 Purchase of Investments 61,593 311,812 406 21,020 101,961 109,57715,679 Investing Payments 61,593 311,812 406 21,020 101,961 109,577


-61,593 -16,101 74 -21,020 -101,961 -109,577


2016-17 2016-17 2017-18 Var 2018-19 2019-20 2020-21Budget Estimated

OutcomeBudget % Estimate Estimate Estimate

$'000 $'000 $'000 $'000 $'000 $'000


155,525 Capital Injections 155,525 176,149 13 194,547 289,103 308,044155,525 Financing Receipts 155,525 176,149 13 194,547 289,103 308,044


155,525 176,149 13 194,547 289,103 308,044


-36,999 470 101 504 738 792


46,223 9,224 -80 9,694 10,198 10,936


9,224 9,694 5 10,198 10,936 11,728




distribution from Territory Banking Account:

- the increase of $5.823 million in the 2016-17 estimated outcome from the original budget is mainly due to the portfolio’s asset allocation and maintaining a higher allocation to cash investments during the year; and

- the decrease of $5.378 million in the 2017-18 Budget from the 2016-17 estimated outcome is mainly due to anticipated changes to the portfolio’s asset allocation with a reduction in the allocation to cash investments over the year.

other revenue:

- the increase of $90.524 million in the 2016-17 estimated outcome from the original budget is due to higher than anticipated capital gains mainly associated with gains on share investments and a higher investment portfolio return for the year; and

- the decrease of $82.509 million in the 2017-18 Budget from the 2016-17 estimated outcome reflects the estimated long term portfolio return objective of CPI + 4.75 per cent.


superannuation expenses:

- the increase of $18.218 million in the 2016-17 estimated outcome from the original budget is due to the impact of the discount rate used in the annual defined benefit superannuation liability valuation at 30 June 2016 being lower than the budget estimate; and

- the decrease of $112.599 million in the 2017-18 Budget from the 2016-17 estimated outcome reflects the superannuation liability valuation based on the long term discount rate budget assumption.

other expenses:

- the increase of $26.793 million in the 2016-17 estimated outcome from the original budget is mainly due to the recognition of capital losses associated with the fixed income investments as a result of interest rate increases; and

- the decrease of $26.833 million in the 2017-18 Budget from the 2016-17 estimated outcome reflects the estimated long term portfolio return objective of CPI + 4.75 per cent.


non current assets:

- the increase of $80.180 million in the 2016-17 estimated outcome from the original budget is mainly due to a higher value of portfolio assets at 30 June 2017 due to an estimated higher than expected investment return for 2016-17; and

- the increase of $187.343 million in the 2017-18 Budget from the 2016-17 estimated outcome reflects the growth in the investment assets based on the estimated long term portfolio return objective of CPI + 4.75 per cent offset by funding requirements.

current employee benefits: the increase of $18.410 million in the 2017-18 Budget from the 2016-17 estimated outcome is due to the estimated growth in the annual payment of the Territory’s employer share of employee superannuation retirement benefits.

non current employee benefits:

- the decrease of $120.767 million in the 2016-17 estimated outcome from the original budget reflects the outcomes from the most recent actuarial review of the defined benefit superannuation liability using salary and membership data at 30 June 2016; and

- the increase of $220.954 million in the 2017-18 Budget from the 2016-17 estimated outcome reflects the outcomes from the most recent actuarial review of the defined benefit superannuation liability and the estimated growth in the liability.




TERRITORY BANKING ACCOUNT

PurposeThe Territory Banking Account (TBA) is established to recognise and manage the general government’s investment assets and debt liabilities. Revenues on behalf of the Territory are transferred to the TBA and fortnightly appropriation disbursements are made to agencies from the TBA.

The Chief Minister, Treasury and Economic Development Directorate (CMTEDD), through the financial operations of the TBA, provides services to the Government including financial asset and liability management through the establishment of investment and borrowing policies and objectives, and the coordination and implementation of cash management, investment and borrowing activities.


managing the Territory’s borrowing program;

managing the investment plan and the financial investment assets of the TBA; and

procuring external service providers as required.



2015-16Actual

Outcome

2016-17Budget


2017-18Budget

Staffing (FTE)1 0 0 0 0

Note(s):1. Functions of the TBA are performed by officers from CMTEDD and those employees are included in CMTEDD’s FTE

levels.




Achievement of Investment Return Objective

To achieve an annual investment return equal to or greater than the Bloomberg AusBond Bank Bill Index.1, 2

Figure 1: Strategic Indicator 1: Achievement of Investment Return Objective

Note(s):1. The investment return objective for the TBA investment portfolio in aggregate is to achieve a return on a gross of fees

basis equivalent to, or greater than the Bloomberg AusBond Bank Bill Index.2. The Bloomberg AusBond Bank Bill Index is a commonly used benchmark which measures the Australian money market

by representing a passively managed money market portfolio.

201718 Budget Statements 266 Territory Banking Account


Implement a Borrowing Program that Facilitates Access to Debt Funding in Domestic Capital Markets

To establish bond lines of select debt maturity and volume.1

Figure 2: Strategic Objective 2: Territory Bonds on Issue

Note(s):1. Select bond lines represent medium to long-term bonds in the form of fixed rate medium term notes and

inflation-linked bonds. Short-term variable rate notes and off-market loans provided by the Commonwealth Government are not included in this Figure. The establishment of select bond lines is an important feature of the borrowing strategy. Bond lines with volume around $500 million, with varying maturities, increase the liquidity and appeal of Territory bonds to investors as well as managing refinancing risks. Varying maturities also provide relative pricing guidance (comparative cost of funds to peers) to investors. This Figure shows the actual current outstanding select bond lines.



Output Class 1: Territory Banking Account

Table 2: Output Class 1: Territory Banking Account


$'000 $'000

Total Cost 4,785,494 5,099,594Payment for Expenses on Behalf of the Territory 0 0

Output 1.1: Territory Banking Account

This output involves the management of the ACT’s investment and borrowing activities and the central account of the Government being the Territory Banking Account. The key outputs to be delivered in 2017-18 include:

managing the investment plan and reporting on the financial investment assets of the TBA;

managing and reporting on the financial borrowing liabilities of the TBA;

raising new Territory borrowings as required;

managing cash flow and liquidity requirements, and completing the settlement of all financial obligations; and

budgeting, managing and reporting on the financial operations of the TBA.



Output Class 1: Territory Banking Account

Output 1.1: Territory Banking Account


2016-17Targets


2017-18Targets

a. Difference between the investment earnings rate and the benchmark is to be > 01

> 0 > 0 > 0

b. Cash and liquidity management of the Territory Banking Account2

100% 100% 100%

c. Completion of new Territory Borrowings3 100% 100% 100%d. Completion of Debt Servicing Obligations4 100% 100% 100%e. Completion of Budget Appropriation Disbursements5 100% 100% 100%f. Completion and delivery of Monthly Financial

Reporting612 12 12

g. Completion and delivery of unqualified Annual Financial Statements7

1 1 1

h. Completion of Annual Budget Estimates8 1 1 1

Note(s):1. The difference between the actual aggregate TBA investment portfolio investment return (gross of fees) and the

aggregate benchmark is a measure of relative performance. The result is calculated by subtracting the benchmark performance from the portfolio’s gross performance. The variance is measured by the percentage difference between the actual performance and the benchmark.

2. Maintaining a positive aggregate cash and investment balance of the TBA to meet ongoing cash payment obligations. For performance measurement purposes, the actual daily aggregate cash and investment balance of the TBA will be counted as the result. If the aggregate cash and investment balance is not positive at the end of a day, this will not be counted in the result.

3. Raising all new Territory borrowing requirements in accordance with approved borrowing limits and guidelines. The measure will be the actual number of conforming borrowing transactions compared to the total borrowing transactions completed.

4. The payment of Territory debt servicing interest and principal repayment obligations to be completed accurately and within required timeframes. The measure will be the actual number of conforming debt servicing settlement transactions compared with the total number of debt servicing settlement transactions completed.

5. The payment of budget appropriation disbursement payments to agencies to be completed accurately and within required timeframes. The measure will be the actual number of conforming disbursement payments compared with the total number of disbursement transactions completed.

6. Monthly financial reporting involves the preparation of accrual financial statements. The monthly financial reporting will not be counted for the year if the financial statements are not prepared after the end of each month.

7. Involves the preparation of the annual financial statements for auditing and inclusion in the CMTEDD annual report. The objective is to receive an unqualified audit opinion during the year.

8. Involves the preparation of annual budget estimates for inclusion in the Annual Territory Budget.



Table 4: Territory Banking Account: Statement of Income and Expenses on Behalf of the Territory

2016-17 Budget

$'000


$'000

2017-18 Budget

$'000

Var%

2018-19 Estimate

$'000

2019-20 Estimate

$'000

2020-21 Estimate

$'000

Revenue105,186 Interest 117,952 116,740 -1 102,173 108,339 104,456

4,095,174 Transfers from ACT Government Agencies

4,171,622 4,285,679 3 4,385,647 4,496,366 4,720,172

134,263 Other Revenue 148,868 135,607 -9 136,655 137,717 136,429

4,334,623 Total Revenue 4,438,442 4,538,026 2 4,624,475 4,742,422 4,961,057

Expenses 204,477 Borrowing Costs 207,418 214,474 3 201,301 222,254 220,128

758 Other Expenses 9,267 1,254 -86 1,569 1,907 9914,696,240 Transfer Expenses 4,568,809 4,883,866 7 5,095,974 4,888,028 5,034,107

4,901,475 Total Expenses 4,785,494 5,099,594 7 5,298,844 5,112,189 5,255,226



-347,052 -561,568 -62 -674,369 -369,767 -294,169


Table 5: Territory Banking Account: Statement of Assets and Liabilities on Behalf of the Territory

Budgetat

30/6/17 $'000

Est.Outcome as at

30/6/17 $'000

Budgetat

30/6/18 $'000

Var%

Estimateat

30/6/19 $'000

Estimateat

30/6/20 $'000

Estimateat

30/6/21 $'000

Current Assets832,692 Receivables 871,537 480,821 -45 796,002 485,892 340,288496,345 Investments 1,330,468 765,440 -42 799,750 871,694 906,812

1,329,037 Total Current Assets 2,202,005 1,246,261 -43 1,595,752 1,357,586 1,247,100

Non Current Assets1,382,897 Receivables 1,287,085 1,745,534 36 1,554,738 1,849,573 1,900,471

263,218 Investments 261,434 277,100 6 290,699 304,762 319,285


2,975,152 TOTAL ASSETS 3,750,524 3,268,895 -13 3,441,189 3,511,921 3,466,856


983,246 Interest-Bearing Liabilities 1,502,922 623,323 -59 1,267,474 772,070 1,376,772

1,014,753 Total Current Liabilities 1,532,778 654,950 -57 1,301,309 808,201 1,415,936

Non Current Liabilities4,229,459 Interest-Bearing Liabilities 4,125,541 4,750,384 15 4,618,876 5,428,531 4,945,958


5,244,212 TOTAL LIABILITIES 5,658,319 5,405,334 -4 5,920,185 6,236,732 6,361,894

-2,269,060 NET ASSETS -1,907,795 -2,136,439 -12 -2,478,996 -2,724,811 -2,895,038


-2,269,060 Accumulated Funds -1,907,795 -2,136,439 -12 -2,478,996 -2,724,811 -2,895,038

-2,269,060 TOTAL FUNDS EMPLOYED -1,907,795 -2,136,439 -12 -2,478,996 -2,724,811 -2,895,038


Table 6: Territory Banking Account: Statement of Changes in Equity on Behalf of the Territory

Budgetat

30/6/17 $'000

Est.Outcome as at

30/6/17 $'000

Budgetat

30/6/18 $'000

Var%

Estimateat

30/6/19 $'000

Estimateat

30/6/20 $'000

Estimateat

30/6/21 $'000

Opening Equity-2,087,624 Opening Accumulated Funds -1,965,426 -1,907,795 3 -2,136,439 -2,478,996 -2,724,811

-2,087,624 Balance at the Start of the Reporting Period

-1,965,426 -1,907,795 3 -2,136,439 -2,478,996 -2,724,811

Comprehensive Income-566,852 Operating Result – Including

Economic Flows-347,052 -561,568 -62 -674,369 -369,767 -294,169


-347,052 -561,568 -62 -674,369 -369,767 -294,169


Transactions Involving Owners Affecting Accumulated Funds385,416 Capital Distributions to

Government404,683 332,924 -18 331,812 123,952 123,942


404,683 332,924 -18 331,812 123,952 123,942

Closing Equity-2,269,060 Closing Accumulated Funds -1,907,795 -2,136,439 -12 -2,478,996 -2,724,811 -2,895,038

-2,269,060 Balance at the end of the Reporting Period

-1,907,795 -2,136,439 -12 -2,478,996 -2,724,811 -2,895,038


Table 7: Territory Banking Account: Cash Flow Statement on Behalf of the Territory

2016-17 Budget

$'000


$'000

2017-18 Budget

$'000

Var %

2018-19 Estimate

$'000

2019-20 Estimate

$'000

2020-21 Estimate

$'000


103,763 Interest Received 112,216 108,866 -3 94,359 100,519 96,316132,435 Other 140,279 133,724 -5 134,757 135,797 134,513

4,064,514 Transfers from ACT Government Agencies

4,141,972 4,284,336 3 4,452,568 4,409,173 4,814,773


Payments202,904 Borrowing Costs 213,723 205,674 -4 191,371 212,201 209,278

3,023,604 Payments to General Government Agencies for Outputs

3,001,003 3,180,520 6 3,130,963 3,189,296 3,240,244

607,561 Payments to Agencies for Expenses on Behalf of the Territory

595,723 615,515 3 680,111 754,768 868,404

152 Other 150 534 256 988 1,290 3383,834,221 Operating Payments 3,810,599 4,002,243 5 4,003,433 4,157,555 4,318,264


583,868 524,683 -10 678,251 487,934 727,338


708,574 Proceeds from Sale/Maturity of Investments

0 549,360 # 0 0 0

1,001 Receipt of Investment from Agencies (TBA Only)

35,881 40,658 13 58,269 67,820 70,385

23,639 Loan Receivable Repayment Received 24,393 394,925 # 29,779 247,199 3,209390,751 Distributions from ACT Government

Agencies379,371 359,627 -5 195,427 278,337 176,534

1,123,965 Investing Receipts 439,645 1,344,570 206 283,475 593,356 250,128

Payments498,635 Purchase of Investments 251,772 286,211 14 47,910 86,018 49,652132,919 Loans Provided (Loans Receivable) 73,484 486,009 561 83,290 297,751 54,111

1,065,057 Capital Payments to ACT Government Agencies

972,083 1,087,831 12 1,284,900 943,964 925,459

1,696,611 Investing Payments 1,297,339 1,860,051 43 1,416,100 1,327,733 1,029,222


-857,694 -515,481 40 -1,132,625 -734,377 -779,094


2016-17 Budget

$'000


$'000

2017-18 Budget

$'000

Var %

2018-19 Estimate

$'000

2019-20 Estimate

$'000

2020-21 Estimate

$'000


110,008 Proceeds from Borrowings 50,219 44,800 -11 508,531 300,762 156,244110,008 Financing Receipts 50,219 44,800 -11 508,531 300,762 156,244

Payments3,853 Repayment of Borrowings 3,853 54,002 # 54,157 54,319 104,4883,853 Financing Payments 3,853 54,002 # 54,157 54,319 104,488


46,366 -9,202 -120 454,374 246,443 51,756


-227,460 0 100 0 0 0

0 CASH AT THE BEGINNING OF REPORTING PERIOD

227,460 0 -100 0 0 0


Many of the variations within the TBA budget statements are driven by agency activity during and between financial years. Significant variations are as follows:


interest revenue: represents investment returns and interest paid by agencies for loans provided from the TBA:

- the increase of $12.766 million in the 2016-17 estimated outcome from the original budget is mainly due to higher investment balances and returns ($16.564 million) offset by lower interest receipts from Icon Water as a result of the impact of lower CPI on inflation linked loans and revised estimates in relation to the volume and timing of the provision of new loans ($3.365 million); and

- the decrease of $1.212 million in the 2017-18 Budget from the 2016-17 estimated outcome reflects lower investment balances and investment return estimates ($11.852 million), offset by higher interest receipts from Icon Water due mainly to a higher volume of outstanding loans ($9.950 million).

transfers from ACT Government Agencies: represents the transfer from agencies of revenue received on behalf of the Territory and includes taxes, fees, fines and grants. Variances are driven by agency activity.


other revenue: represents notional employer CSS and PSS superannuation contributions from agencies and capital gains from investments:

- the increase of $14.605 million in the 2016-17 estimated outcome from the original budget is mainly attributed to prevailing capital gains associated with market revaluations of investment securities ($6.777 million) and higher employer superannuation contributions from agencies ($4.755 million); and

- the decrease of $13.261 million in the 2017-18 Budget from the 2016-17 estimated outcome is due to the investment return estimates not assuming future capital gains ($6.777 million) and lower employer superannuation contributions from agencies ($3.411 million).

borrowing costs: represents interest payments made on borrowings for the general government sector and Icon Water and investment return payments to agencies:

- the increase of $2.941 million in the 2016-17 estimated outcome from the original budget is mainly due to higher investment return payments to agencies as a result of higher investment balances ($6.824 million) offset by lower interest payments as a result of lower than estimated CPI on inflation linked bond borrowings; and

- the increase of $7.056 million in the 2017-18 Budget from the 2016-17 estimated outcome is due in the main to higher interest costs resulting from increased estimated borrowings for Icon Water ($12.161 million) offset by lower interest payments to agencies as a result of lower estimated investment balances ($4.888 million).

other expenses: represents management costs for investment and borrowing activities, and capital losses on investments:

- the increase of $8.509 million in the 2016-17 estimated outcome from the original budget mainly reflects prevailing capital losses associated with market revaluations on investment securities. Net capital gains and losses are a component of the total estimated investment return of 2.5 per cent for the 2016-17 estimated outcome; and

- the decrease of $8.013 million in the 2017-18 Budget from the 2016-17 estimated outcome is mainly due to the investment return estimates not assuming future capital losses.

transfer expenses: represents the transfer of appropriated funds to agencies. Variances are driven by agency activity.


current and non-current receivables: represent accrued revenue receivables in relation to transfer revenues from agencies and loans provided to agencies (Icon Water, ACTION and CMTEDD in relation to Community Housing Canberra and Exhibition Park):

- the decrease of $56.967 million in the 2016-17 estimated outcome from the original budget is mainly due to Icon Water's lower estimated borrowing requirements and principal repayments ($61.823 million); and


- the increase of $67.733 million in the 2017-18 Budget from the 2016-17 estimated outcome is mainly due to an increase in loans receivable from Icon Water ($93.585 million) reflecting an estimated higher borrowing requirement which is offset by a decrease in accrued receivables from agencies ($23.405 million).

current and non-current investments with the Territory Bank Account: represents financial investment holdings:

- the increase of $832.339 million in the 2016-17 estimated outcome from the original budget is due to higher than estimated funds under investment at the end of the financial year mainly in relation to the TBA and the Superannuation Provision Account maintaining a higher allocation to cash investments during the year; and

- the decrease of $549.362 million in the 2017-18 Budget from the 2016-17 estimated outcome mainly reflects a reduction in the Superannuation Provision Account’s allocation to cash as a result of changes to its portfolio asset allocation as well as higher TBA holdings reflecting cash flow and liquidity requirements.

current and non-current interest bearing liabilities: comprises agencies’ investment deposits with the TBA, Commonwealth and market borrowings:

- the net increase of $415.748 million in the 2016-17 estimated outcome from the original budget is due in the main to the Superannuation Provision Account maintaining a higher cash investment allocation during the year ($483.041 million), partially offset by a net decrease in borrowings ($66.448 million). The net decrease in borrowings mainly reflects a reduction in 2016-17 market borrowing requirements for Icon Water as a result of revised cash flow and liquidity esimates; and

- the net decrease of $254.756 million in the 2017-18 Budget from the 2016-17 estimated outcome is mainly due to the reduction in the Superannuation Provision Account’s cash investment allocation as a result of changes to its portfolio asset allocation.




APPENDIX A: DISCONTINUED AGENCY – LAND DEVELOPMENT AGENCY

PurposeThe Land Development Agency (LDA) is a Territory Authority established under the Planning and Development Act 2007.

The key outcome of the agency is to contribute positively to the economic and social development of the ACT by building vibrant and sustainable communities through greenfield and urban renewal projects for the development of residential, commercial, industrial, community and non-urban land.

From 1 July 2017, the LDA will cease operating as a separate entity and its functions will transfer to the Suburban Land Agency (SLA), the City Renewal Authority (CRA) and the Environment, Planning and Sustainable Development Directorate (EPSDD).


Table 1: Estimated Employment Level2015-16

ActualOutcome

2016-17Budget


2017-18Budget

Staffing (FTE) 97 127 122 01

Note(s):1. The variation between the 2016-17 Budget and the 2017-18 Budget is due to the cessation of the Land Development

Agency from 1 July 2017.

201718 Budget Statements 277 Appendix A: Land Development Agency

Assessment of Performance Against 2016-17 Objectives2016-17 Objective 1: Ensure that an adequate supply of land is maintained to meet market demand and to stimulate economic activity in the residential, commercial, industrial and community land development sectors.

The 2016-2020 four-year Residential Release Program was planned to deliver land for approximately 17,780 dwellings with a target of 4,550 in 2016-17, with steady releases of 4,430, 4,700 and 4,100 in the following three years. This level of supply is above the estimated level of demand for new housing.

The LDA is on track to release circa 4,870 dwelling sites in 2016-17, which exceeds the published target of 4,550. Public housing renewal is driving urban renewal in key parts of the city, including along the Light Rail Corridor and inner city suburbs with the disposal of ageing public housing properties.

The achieved residential dwelling releases include some changes from those forecast in the 2016-17 Statement of Intent:

47 additional dwellings in Throsby were released as part of bringing forward a mixed use site to allow for earlier development of a local supermarket and shops; and

the additional residential releases offset the delay in releasing two sites in Greenway. Section 28 and Section 10 Greenway with a total of 404 dwelling sites are both delayed due to outstanding planning approvals.

The Commercial Land Release Program includes a supply of mixed use commercial sites predominantly to support demand for residential uses in urban renewal areas and infill development in commercial centres and inner Canberra. The release of mixed use sites is an important part of delivering the ACT Planning Strategy target of achieving 50 per cent or more of new housing through urban intensification.

The LDA is forecast to release over 129,000m2 of commercial and mixed use land to the market in 2016-17, against a combined target of 99,030m2. Changes to the forecast program for mixed use land releases include:

release of an additional 11,209m2 mixed use site in Throsby;

taking into account the mixed use site area for a 13,693m2 site in Forrest; and

an increased englobo site area for the Dickson Section 77 precinct (Asset Recycling Initiative site).

However, commercial land releases were impacted by:

delayed release of a 3,024m2 commercial site in the City West Precinct to the Australian National University;

delayed release of a 5,024m2 commercial site in Mawson; and


not proceeding with the second stage of the Expression of Interest/tender release for a 1,070m2 site in Belconnen town centre.

The demand for general industrial (IZ1) zoned land is being met from inventory of land established in previous years. Demand continues to exist for mixed use industrial zoned land (IZ2) with work continuing to obtain the necessary environmental and planning clearances for future IZ2 zoned land releases in Majura/Pialligo,Fyshwick and Symonston. It is expected that 42,025m2 of industrial land will be released in 2016-17, exceeding the target of 30,000m2.

The Community and Non-Urban Land Release Program continues to supply a large volume of land required to support community needs arising from Canberra’s urban growth. The LDA is on track to release more than 126,000m2 in 2016-17 against a target of 131,404m2. Community land releases for 2016-17 included a 80,000m2 site to the Education Directorate for the development of a school in the Gungahlin suburb of Taylor. Other notable community land releases in 2016-17 include the release of a site in Monash for development for 120 independent living units and a 3,683m2 site for a child care centre in Charnwood.

The ACT Government has continued to release sites identified on the Asset Recycling Initiative (ARI) program in accordance with the National Partnership Agreement on Asset Recycling with the Commonwealth Government. Under the ARI program, seven land based assets, including public housing multi-unit properties and ACT Government commercial buildings, were released in 2016-17. The sale proceeds from these assets are being delivered as a special dividend payment to Government.

These seven sites are located within the urban renewal precinct of Northbourne Avenue and the city. The redevelopment of these sites will deliver growth along the Light Rail Corridor and contribute to the urban renewal of Northbourne Avenue.

2016-17 Objective 2: Contribute to the provision of advice to Government on the ACT property market to support the development of its land release targets.

The LDA has continued to provide advice to Government on the state of the ACT property market. This has been undertaken through regular briefings on the state of the housing market, turnover and prices through the Government’s Residential and Commercial Advisory Group meetings held quarterly over 2016-17.

In addition, the Government’s published land release program and LDA land releases are informed by a Housing Supply and Demand Model which identifies underlying demand for housing and the balance between supply and demand. Residential land release targets are maintained over and above the anticipated level of demand to assist with housing affordability.

An aged care dwelling demand model was developed in 2014-15 and is regularly updated, to forecast the demand for residential aged care facilities and supported and independent living dwellings in order to inform the number and location of sites that are required to meet the needs of an ageing population. A child care demand model is also maintained to track supply and forecast demand for child care services to inform the number and location of sites required to meet the needs in greenfield areas and areas of urban renewal.


2016-17 Objective 3: Contribute to the delivery of the Government’s policies and priorities as they relate to land development, urban renewal and urban sustainability.

The ACT Planning Strategy has set a target to deliver 50 per cent or more of new housing through urban intensification. Of the 17,780 dwelling sites in the 2016-2020 Indicative Land Release Program, 57 per cent are within the existing urban boundary. In 2016-17, the LDA has delivered 2,271 out of an estimated total of 4,870 dwelling sites in the urban area across Dickson, Lyneham, Forrest, Yarralumla, Narrabundah, and Monash.

The LDA has contributed to improving sustainability by increasing urban density and green infrastructure. Increasing urban density reduces car dependence and increases opportunities for active travel, promoting greater lifestyle choices. In all estates, the LDA provides for pedestrian and cycle connections within the estate as well as connecting to existing networks outside the estate, enhancing opportunities for pedestrian activity. All housing is located within 400 metres safe walking distance to a bus route.

The LDA has initiated a number of measures which deliver a more sustainable Canberra. These include:

the LDA’s joint venture project, Ginninderry, which has achieved a Green Star Communities Rating of 6 stars through the Green Building Council of Australia’s Green Star – Communities;

mandatory solar hot water in Lawson and Coombs;

LED street lights in new estates; and

community gardens in a number of estates.

2016-17 Objective 4: Cultivate and maintain productive relationships across the ACT Government.

The LDA worked closely with the Economic Development Directorate and other relevant parts of Government to provide technical input to various forums that assisted in coordinating land delivery. This included the Capital Works Coordinator’s Working Group to improve the integration of design management and delivery of capital works with estate works; the Residential and Commercial Advisory Committees; and other informal management level discussion groups.

2016-17 Objective 5: Cultivate and maintain productive working relationships and linkages with the private sector.

The LDA worked closely with and undertook regular engagement activities with the private sector through pre-tender briefings, post-sale developer meetings, sponsorships, engagement of specialist consultants, and representation at roundtables with industry advocates.

2016-17 Objective 6: Operate efficiently in the markets in which it operates and provide agreed returns to the Territory.


As at 30 April 2017, the LDA received land sales revenue totalling $246.9 million in the period since 1 July 2016. The full year land sales revenue forecast is $563.4 million which is a shortfall of $66.4 million compared to the SOI. The shortfall is due to the deferral of ARI sites and Throsby settlements to 2017-18.

2016-17 Objective 7: Ensure that key commercial decisions on land in the ACT are consistent with the long-term sustainability of the Territory.

The LDA ensures its key commercial decisions on land are made with due consideration to the sustainability of the Territory by identifying and integrating economic, social and environmental factors into decision making. These elements are reflected in the business cases that are considered by the LDA Board for all major developments.

2016-17 Objective 8: Engage the community in a timely manner in the land development process and continue to improve community engagement processes for high profile redevelopments.

The LDA Community Engagement team continuously reviews and improves its strategies and practices to ensure open, proactive and meaningful community engagement. Comprehensive communications strategies are prepared for all urban renewal projects and these are tailored to specific target audiences and project goals.

Community engagement was undertaken for all LDA estates during 2016-17.

The Canberra Brickworks development, in particular, involved a range of community engagement processes aimed at ensuring close involvement by the community in the proposed development.

As part of the consultation process the LDA invited community stakeholders to participate through a community panel forum. The Community Panel was formed to act as an advisory body for the project and is represented by groups, organisations or associations that have an interest in the development. The LDA worked closely with the Community Panel throughout 2015-16 to develop a list of precinct objectives for the Request for Proposal (RFP) process.

The panel continued to meet in 2016-17 and were invited, as part of the RFP process, to provide advice on proponents responses to the precinct objectives. The Community Panel met with representatives from the ACT Government Solicitor’s Office who provided a probity and legal briefing on the legal aspects of the RFP process and their role as advisors. The Community Panel signed deeds of confidentiality and disclosed conflicts of interest before being given access to redacted proponents reponses to the precinct objectives. The panel met with a facilitator to combine their comments and draft a report to the LDA evaluation panel.

The unprecedented level of engagement by the LDA Community Engagement Team has proven highly effective for the Canberra Brickworks development and generated strong collaboration between the LDA and the community. As a result, planning is underway to apply similar approaches to future urban renewal projects.


Financial Statements – Controlled (PTE)

Table 2: Land Development Agency: Operating Statement 2016-17 Budget

$'000


$'000

2017-18 Budget

$'000

Var%

2018-19 Estimate

$'000

2019-20 Estimate

$'000

2020-21 Estimate

$'000

Revenue629,801 Land Revenue 563,419 0 -100 0 0 0

628 User Charges 1,086 0 -100 0 0 06,101 Interest 7,246 0 -100 0 0 0


1,583 0 -100 0 0 0

145 Other Revenue 882 0 -100 0 0 0

636,675 Total Revenue 574,216 0 -100 0 0 0

Expenses 17,142 Employee Expenses 12,701 0 -100 0 0 0

2,067 Superannuation Expenses 1,998 0 -100 0 0 023,265 Supplies and Services 23,229 0 -100 0 0 0


72 0 -100 0 0 0


4,019 0 -100 0 0 0

188,593 Cost of Goods Sold 97,602 0 -100 0 0 02,897 Borrowing Costs 1,489 0 -100 0 0 0

96,719 Other Expenses 86,419 0 -100 0 0 0

334,836 Total Expenses 227,529 0 -100 0 0 0

0 Share of Operating Profit from Joint Venture Accounted for using the Equity Method

-3,329 0 100 0 0 0

301,839 Operating Result from Ordinary Activities

343,358 0 -100 0 0 0

90,552 Income Tax Equivalent 103,007 0 -100 0 0 0

211,287 Operating Result 240,351 0 -100 0 0 0


240,351 0 -100 0 0 0


Table 3: Land Development Agency: Balance Sheet Budget

at30/6/17

$'000

Est.Outcome as at

30/6/17 $'000

Budgetat

30/6/18 $'000

Var%

Estimateat

30/6/19 $'000

Estimateat

30/6/20 $'000

Estimateat

30/6/21 $'000

Current Assets199,278 Cash and Cash Equivalents 212,244 0 -100 0 0 0

32,011 Investment – Joint Venture 0 0 - 0 0 011,590 Receivables 10,879 0 -100 0 0 0

204,422 Inventories 269,067 0 -100 0 0 0

447,301 Total Current Assets 492,190 0 -100 0 0 0

Non Current Assets10,590 Receivables 19,685 0 -100 0 0 012,245 Investment – Joint Venture 19,529 0 -100 0 0 0

172,073 Inventories 27,027 0 -100 0 0 03,181 Property, Plant and

Equipment29,625 0 -100 0 0 0

0 Intangible Assets 602 0 -100 0 0 0

198,089 Total Non Current Assets 96,468 0 -100 0 0 0

645,390 TOTAL ASSETS 588,658 0 -100 0 0 0

Current Liabilities28,288 Payables 68,051 0 -100 0 0 0

3,890 Employee Benefits 4,744 0 -100 0 0 065,979 Other Provisions 83,561 0 -100 0 0 072,441 Income Tax Payable 30,710 0 -100 0 0 0

262,695 Other Liabilities 182,241 0 -100 0 0 0

433,293 Total Current Liabilities 369,307 0 -100 0 0 0

Non Current Liabilities222 Employee Benefits 210 0 -100 0 0 0

48,246 Other Provisions 69,004 0 -100 0 0 037,848 Deferred Tax Liability 27,717 0 -100 0 0 0

86,316 Total Non Current Liabilities 96,931 0 -100 0 0 0

519,609 TOTAL LIABILITIES 466,238 0 -100 0 0 0

125,781 NET ASSETS 122,420 0 -100 0 0 0


125,781 Accumulated Funds 122,420 0 -100 0 0 0

125,781 TOTAL FUNDS EMPLOYED 122,420 0 -100 0 0 0


Table 4: Land Development Agency: Statement of Changes in Equity Budget

at30/6/17

$'000

Est.Outcome as at

30/6/17 $'000

Budgetat

30/6/18 $'000

Var%

Estimateat

30/6/19 $'000

Estimateat

30/6/20 $'000

Estimateat

30/6/21 $'000

Opening Equity125,781 Opening Accumulated Funds 122,420 122,420 - 0 0 0


122,420 122,420 - 0 0 0


Economic Flows240,351 0 -100 0 0 0


240,351 0 -100 0 0 0

Transactions Involving Owners Affecting Accumulated Funds-78,367 Capital Distributions to

Government-83,671 0 100 0 0 0

78,367 Inc/Dec in Net Assets due to Admin Restructure

83,671 -122,420 -246 0 0 0

-211,287 Dividend Approved -240,351 0 100 0 0 0


-240,351 -122,420 49 0 0 0

Closing Equity125,781 Closing Accumulated Funds 122,420 0 -100 0 0 0


122,420 0 -100 0 0 0


Table 5: Land Development Agency: Cash Flow Statement 2016-17 Budget

$'000


$'000

2017-18 Budget

$'000

Var %

2018-19 Estimate

$'000

2019-20 Estimate

$'000

2020-21 Estimate

$'000


628 User Charges 1,132 0 -100 0 0 05,461 Interest Received 7,191 0 -100 0 0 0

631,284 Land Sales 558,783 0 -100 0 0 030,583 Other 29,391 0 -100 0 0 0

667,956 Operating Receipts 596,497 0 -100 0 0 0

Payments17,142 Employee 12,188 0 -100 0 0 0

2,067 Superannuation 1,998 0 -100 0 0 023,265 Supplies and Services 23,112 0 -100 0 0 0


4,019 0 -100 0 0 0

2,897 Borrowing Costs 1,489 0 -100 0 0 079,358 Income Tax Equivalent

Payments152,594 0 -100 0 0 0

301,277 Related to Cost of Goods Sold 159,771 0 -100 0 0 046,398 Other 28,873 0 -100 0 0 0

476,485 Operating Payments 384,044 0 -100 0 0 0


212,453 0 -100 0 0 0


0 Proceeds from Sale/Maturity of Investments

490 0 -100 0 0 0

0 Investing Receipts 490 0 -100 0 0 0

Payments0 Purchase of Land and

Intangibles4,212 0 -100 0 0 0

43,616 Purchase of Investments 22,583 0 -100 0 0 043,616 Investing Payments 26,795 0 -100 0 0 0


-26,305 0 100 0 0 0

2016-17 Budget

$'000


$'000

2017-18 Budget

$'000

Var %

2018-19 Estimate

$'000

2019-20 Estimate

$'000

2020-21 Estimate

$'000

CASH FLOWS FROM FINANCING ACTIVITIESPayments

83,702 Distributions to Government 58,359 0 -100 0 0 0173,376 Payment of Dividend 199,432 0 -100 0 0 0


0 Payment of Transferred Cash Balances

0 212,244 # 0 0 0

257,078 Financing Payments 257,791 212,244 -18 0 0 0


-257,791 -212,244 18 0 0 0

-109,223 NET INCREASE / (DECREASE) IN CASH AND CASH EQUIVALENTS

-71,643 -212,244 -196 0 0 0


283,887 212,244 -25 0 0 0


212,244 0 -100 0 0 0



From 1 July 2017, the LDA will cease operating as a separate entity and its functions will transfer to the Suburban Land Agency (SLA), the City Renewal Authority (CRA) and the Environment, Planning and Sustainable Development Directorate (EPSDD).

Other significant variations are as follows:

Operating Statement

land revenue: the decrease of $66.382 million in the 2016-17 estimated outcome from the original budget is mainly due to deferred settlement of the Red Hill Flats and Greenway 2/28 which have been rescheduled to settle in the 2017-18 financial year.

interest revenue: the increase of $1.145 million in the 2016-17 estimated outcome from the original budget is due to higher than budgeted cash reserves which attract interest.

resources received free of charge: the increase of $1.583 million in the 2016-17 estimated outcome from the original budget is due to the transfer of property, free of charge, from other ACT Government Agencies, not foreseen in the original budget.

employee expenses: the decrease of $4.441million in the 2016-17 estimated outcome from the original budget is mainly due to delayed recruitment to new positions.

cost of goods sold: the decrease of $90.991 million in the 2016-17 estimated outcome from the original budget is due to deferred settlement of a number of sites to 2017-18 and a reduction in costs as a result of the bi-annual review.

borrowing costs: the decrease of $1.408 million in the 2016-17 estimated outcome from the original budget is due to a decrease in expected land payments to the Transport Canberra and City Services Directorate (TCCS).

other expenses: the decrease of $10.3 million in the 2016-17 estimated outcome from the original budget is due to the sale of community land to the Public Housing Renewal Taskforce (PHRT) at a discount to its market value. The original budget was based on revenue at market value, with the difference between market value and sale price budgeted in other expenses.

share of operating profit from joint venture: the decrease of $3.329 million in the 2016-17 estimated outcome from the original budget is mainly due to the share of the loss from the West Belconnen Joint Venture.

income tax equivalent: the increase of $12.455 million in the 2016-17 estimated outcome from the original budget is due to increased profits.

Balance Sheet

cash and equivalents: the increase of $12.966 million in the 2016-17 estimated outcome from the original budget is mainly due to the decrease in development costs and land


payments, partially offset by an increase in Income Tax Equivalent payments.

current and non-current receivables: the increase of $8.384 million in the 2016-17 estimated outcome from the original budget is mainly due to higher than budgeted infrastructure assets transferred from developers.

current and non-current joint venture investments: the decrease of $24.727 million in the 2016-17 estimated outcome from the original budget is due to rephasing of investment in the West Belconnen joint venture project which reprofiled investment to 2017-18.

current and non-current inventories: the decrease of $80.401 million in the 2016-17 estimated outcome from the original budget is mainly due to lower than budgeted development costs in Taylor, Throsby, Moncrieff and Kingston and reclassification of rural land to property, plant and equipment.

property, plant and equipment: the increase of $26.444 million in the 2016 17 estimated outcome from the original budget is mainly due to reclassification of rural land from inventory.

payables: the increase of $39.763 million in the 2016-17 estimated outcome from the original budget is due to increased capital distribution payments to government, which reflects an increased operating surplus.

current and non-current other provisions: the increase of $38.340 million in the 2016-17 estimated outcome from the original budget is mainly due to higher provision for the transfer of infrastructure assets to TCCSD and Icon Water Limited.

income tax payable and deferred tax liability: the decrease of $51.862 million in the 2016-17 estimated outcome from the original budget is mainly due to higher than budgeted income tax payments, partially offset by increased operating surplus.

other liabilities: the decrease of $80.454 million in the 2016-17 estimated outcome from the original budget is mainly due to a lower starting balance for dividends payable and higher dividends paid during the reporting period. A reconciliation is provided below at Table 6.


Table 6: Dividend Reconciliation

2016-17 OriginalBudget

$'000


$'000

Current Other LiabilitiesDividend Payable 212,520 139,177 Revenue Received in Advance 14,636 17,284 Accrued Land Value (payable to TCCS) 35,540 25,780 Total Other Current Liabilities 262,695 182,241

Reconciliation of Dividends PayableDividends Payable at the Beginning of the Reporting Period 165,750 98,257 Dividends to be Declared during the Reporting Period 211,288 240,351 Dividends Paid during the Reporting Period - 164,518 - 199,431

Dividends Payable at the End of the Reporting Period 212,520 139,177




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