Page 3099 - Week 08 - Tuesday, 14 August 2012

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The territory received a number of advance payments from the commonwealth in the areas of health, non-government schools and early childhood. Cross-border revenues for health services have also improved, with almost $14 million of additional revenue provided for the previous year’s acquittals.

Total expenses have decreased by $69.8 million compared to the estimated outcome. $10.4 million in savings in the Treasurer’s advance has contributed to this result, and represents prudent financial management on behalf of agencies in managing unforeseen expenditures and cost pressures.

Other contributing factors to the decrease in expenses include lower agency operational expenditure associated with the timing of project and program delivery, for which it is expected that these funds will be rolled into the 2012-13 fiscal year, and a decrease in other expenses mainly due to end-of-year actuarial assumptions which decreased the value of insurance claims.

The territory’s balance sheet has deteriorated due to a substantial increase in the actuarial valuation of the superannuation liability. This is mainly caused by a decrease in the government bond rate which is used to value the liability. However, net debt continues to remain negative, indicating that cash reserves and investments are greater than gross debt liabilities.

Economic activity in the ACT softened in line with expectations. State final demand increased by 1.8 per cent year on year in original terms in the March quarter, driven mainly by public investments. Employment growth moderated in the 2011-12 fiscal year to 0.6 per cent, broadly in line with the 2012-13 budget forecast. Nevertheless, the ACT’s labour market performance was amongst the strongest in the nation.

It is important to note that the results presented in this report are interim in nature and are unaudited. Changes will almost certainly occur during the preparation and auditing of the 2011-12 annual consolidated financial report. Changes during this process can be substantial, reflecting technical accounting adjustments and reconciliations between internal trading and transfers between agencies.

Mr Speaker, I am sure you will join with me and other members in this Assembly in welcoming this improved result. I commend the June quarter report to the Assembly.

Papers

Mr Barr presented the following paper:

Independent Competition and Regulatory Commission Act, pursuant to section 24, and pursuant to the resolution of the Assembly of 4 May 2011, as amended 29 March 2012—Independent Competition and Regulatory Commission—Report 6 of 2012—Secondary water use in the ACT—Final Report, dated July 2012.


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