Page 3228 - Week 09 - Tuesday, 18 August 2009
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Financial Management Act, pursuant to section 26—Consolidated Financial Report—Financial quarter ending 30 June 2009—2008-09 Interim Result.
This paper was circulated to members when the Assembly was not sitting. I seek leave to make a statement in relation to the paper.
Leave granted.
MS GALLAGHER: This report is required under section 26 of the Financial Management Act. The interim result for June 2009 is a surplus of $14 million. Government is very pleased with this result when compared to the previous estimate of a deficit of $46 million published in the 2009-10 budget update.
I must stress these are unaudited results to the end of June 2009 and it is almost certain that these will change as consolidated annual financial statements are prepared and audited. Changes in this stage of the process can be substantial, relating to technical accounting adjustments as well as reconciliation of interagency trading and transfers.
Nonetheless, the interim result is pleasing, particularly what it highlights and reflects. It highlights the government’s discipline in managing costs to the budget and it reflects better-than-forecast economic conditions and the effects of the federal government’s initiatives and, in some measure, our own initiatives to cushion the effects of the global economic slowdown, to support jobs and to support activity in the housing and construction market.
Of the $61 million improvement, around $40 million relates to own-source tax revenue coming from better-than-forecast conditions in the housing and labour markets. There is an additional $13 million from residential and commercial conveyancing. Transactions in the housing market were up 30 per cent in the last three months compared to the rest of the financial year. Undoubtedly this reflects the effects of the federal government’s stimulus initiatives.
We have also recorded some large commercial transactions. This reflects that, in these uncertain economic times, the territory remains a very attractive place for investment. Payroll tax is around $15 million above the previous forecasts. Just under half of this additional revenue is from compliance activity undertaken by the Revenue Office. I am also advised that there may be some adjustments to this revenue line as employers reconcile their payments to their staffing. Nevertheless, there is a clear indication that employment conditions for medium to large businesses are better than previously forecast.
Taxation revenue related to the stock of property, that is, general rates, land tax and the fire and emergency levy, is around $7 million above the published estimate. This reflects a higher than forecast increase in the stock of both residential as well as commercial property.
We have some other adjustments as well. Service receipts are higher, by around $17 million, across a number of areas, including health, training and planning,
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