Operating statement
| For the year ended 30 June 2017 | 2016-17 $'000 |
2015-16 $'000 |
|---|---|---|
| Income from transactions | ||
| Revenue from government* | 92,453 | 92,267 |
| Sales of goods and services | 717 | 756 |
| Payments to consolidated fund | - | (1,775) |
| Total income from transactions | 93,170 | 91,248 |
| Expenses from transactions | ||
| Employee benefits | 54,396 | 48,462 |
| Supplies and services | 23,300 | 19,732 |
| Depreciation and amortisation | 7,275 | 18,683 |
| Grants and other transfers | 4,891 | 4,754 |
| Capital asset charge | 18 | 28 |
| Interest expenses | 4 | 3 |
| Total expenses from transactions | 89,884 | 91,662 |
| Net result from transactions | 3,286 | (414) |
| Other economic flows in net result | ||
| Net gains / (losses) on financial instruments | (3) | (2) |
| Net gains / (losses) on non-financial assets | 11 | 9 |
| Other gains / (losses) on other economic flows | 459 | (679) |
| Total other economic flows in net result | 467 | (672) |
| Net surplus/(deficit) for reporting period | 3,753 | (1,086) |
| * Revenue from government represents the output budget allocated to SRO | ||
Notes to the operating statement
- The increase of $5.933 million in employee benefits was mainly due to the commencement of additional compliance programs.
- The decrease of $11.408 million in depreciation and amortisation was mainly due to a decrease in amortisation expenses related to municipal valuations. Municipal valuations are amortised for up to 2 years and due to the timing of purchases the amortisation expense is always higher in the second year of the cycle. 2016-17 was the first year of the two year cycle.
- Grants & other transfers consists of payments made to Municipal Councils in relation to the administration of the Fire Service Property Levy, which were based on the Treasurer’s determination under section 70 of the Fire Services Property Levy Act 2012.
- Expenses from transactions exclude $0.610 million in relation to the administration of the Growth Area Infrastructure Contribution and Metropolitan Planning Levy, which were operated through Treasury Trust.
Administered items
Administered revenues
| Administered revenues | 2016-17 $'000 |
2015-16 $'000 |
|---|---|---|
| Payroll tax | 6,312,891 | 5,948,733 |
| Duties* | 7,362,008 | 7,000,745 |
| Land tax | 2,511,565 | 1,792,873 |
| Congestion Levy | 119,381 | 102,053 |
| Growth Areas Infrastructure Contribution | 188,892 | 149,352 |
| Metropolitan Planning Levy | 27,028 | 19,832 |
| Fire Services Property Levy | 675,645 | 674,063 |
| Licence fees | 22,657 | 22,026 |
| Total | 17,220,067 | 15,709,677 |
| Less: Cattle Compensation Fund | (4,684) | (4,985) |
| Less: Swine Compensation Fund | (196) | (189) |
| Less: Sheep and Goat Compensation Fund | (1,187) | (1,296) |
| Add: Unclaimed money receipts | 93,156 | 96,491 |
| Add: User charges | 3,495 | 3,232 |
| Add: Sundry income | 393 | 1,187 |
| Total administered revenues | 17,311,044 | 15,804,117 |
| * Includes Cattle Compensation Fund, Swine Compensation Fund and Sheep & Goat Compensation Fund | ||
Administered expenses
| Administered expenses | 2016-17 $'000 |
2015-16 $'000 |
|---|---|---|
| First Home Owner Grant | 116,026 | 110,749 |
| First Home Bonus | (1,892) | - |
| Liquor subsidies | 3,866 | 3,617 |
| Other grants, rebates and other payments | 71,321 | 67,809 |
| Unclaimed money refunds | 18,829 | 17,176 |
| Bad and doubtful debts | 37,272 | 24,595 |
| Total administered expenses | 245,422 | 223,946 |
| Net administered revenues | 17,065,622 | 15,580,171 |
Notes to administered items
- Tax and duty revenue increased by $1,510.3 million to $17,220 million. This included:
- an increase of $294.8 million in land transfer duty;
- an increase of $718.6 million in land tax; and
- an increase of $364.1 million in payroll tax.
- The Fire Services Property Levy increased by $1.582 million mainly due to the change of fixed charges and levy rates according to sections 11 and 12 of the Fire Services Property Levy Act 2012.
- Unclaimed money receipts represent monies transferred to the Registrar under the Unclaimed Money Act 2008 and the Gambling Regulation Act 2003. There was a decrease of $3.334 million in the 2016-17 financial year.
- The First Home Owner Grant increased by $5.277 million mainly due to an increase in the number of applications.
- Other grants, rebates and other payments increased by $3.512 million mainly due to an increase in ex gratia relief expenditure of $3.823 million.
- The $12.676 million increase in bad & doubtful debts was made up of an increase of $47.908 million in bad debts and a decrease $35.232 million in the provision for doubtful debts.
Balance sheet
| As at 30 June 2016 | 2016-17 $'000 |
2015-16 $'000 |
|---|---|---|
| Financial assets | ||
| Cash assets | 2 | 2 |
| Receivables | 20,795 | 32,348 |
| Total financial assets | 20,797 | 32,350 |
| Non-financial assets | ||
| Inventories | - | - |
| Plant, property and equipment | 208 | 346 |
| Intangible assets | 22,589 | 7,601 |
| Other | 2,014 | 1,869 |
| Total non-financial assets | 24,811 | 9,816 |
| Total assets | 45,608 | 42,166 |
| Liabilities | ||
| Payables | 11,475 | 10,302 |
| Interest-bearing liabilities | 259 | 277 |
| Provisions | 15,854 | 15,142 |
| Total liabilities | 27,588 | 25,721 |
| Net assets | 18,020 | 16,445 |
Notes to the balance sheet
Receivables
| Receivables | 2016-17 $'000 |
2015-16 $'000 |
|---|---|---|
| Amounts owing from Victorian Government | 19,985 | 28,218 |
| GST input tax credit recoverable | 536 | 293 |
| Other receivables | 274 | 3,837 |
| Total receivables | 20,795 | 32,348 |
Written-down value of property, plant & equipment
| Written-down value of property, plant & equipment | 2016-17 $'000 |
2015-16 $'000 |
|---|---|---|
| Computer equipment | 2 | 3 |
| Plant, furniture and equipment | 52 | 72 |
| Leasehold improvements / fitouts | 154 | 271 |
| Construction in progress | - | - |
| Total written-down value of plant, property and equipment | 208 | 346 |
Written-down value of intangible assets
| Written-down value of intangible assets | 2016-17 $'000 |
2015-16 $'000 |
|---|---|---|
| Municipal valuations* | 14,721 | - |
| Other intangible produced assets** | 5,430 | 6,041 |
| Work in progress** | 2,438 | 1,560 |
| Total written-down value of intangible assets | 22,589 | 7,601 |
| *All municipal valuations will be fully amortised by 30 June 2018 ** Capitalised and uncapitalised expenditure on e-Sys Life Extension Project |
||
Other non-financial assets
| Other non-financial assets | 2016-17 $'000 |
2015-16 $'000 |
|---|---|---|
| Prepayments | 1,756 | 1,594 |
| Motor vehicle leased | 258 | 275 |
| Total other non-financial assets | 2,014 | 1,869 |
Payables
| Current payables | 2016-17 $'000 |
2015-16 $'000 |
|---|---|---|
| Unpresented cheques | 368 | 559 |
| Trade creditors | 7 | 2,071 |
| Accruals | 7,916 | 4,939 |
| Other payables | 3,184 | 2,733 |
| Total payables | 11,475 | 10,302 |
Interest-bearing liabilities
| Interest-bearing liabilities | 2016-17 $'000 |
2015-16 $'000 |
|---|---|---|
| Current liabilities | ||
| Motor vehicle leases | 104 | 131 |
| Total current liabilities | 104 | 131 |
| Non-current liabilities | ||
| Motor vehicle leases | 155 | 146 |
| Total non-current liabilities | 155 | 146 |
| Total interest-bearing liabilities | 259 | 277 |
Provisions
| Provisions | 2016-17 $'000 |
2015-16 $'000 |
|---|---|---|
| Current provisions | ||
| Annual leave | 3,140 | 2,841 |
| Long service leave | 9,595 | 9,497 |
| Other Employee Entitlements | 1,718 | 1,500 |
| Total current provisions | 14,453 | 13,838 |
| Non-current provisions | ||
| Long service leave | 1,401 | 1,304 |
| Total non-current provisions | 1,401 | 1,304 |
| Total provisions | 15,854 | 15,142 |