Page 2877 - Week 09 - Thursday, 13 August 2015

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Mr Barr presented the following paper:

Mr Fluffy loose-fill asbestos—Update on the Government response to the issue—Quarterly report—31 March to 30 June 2015.

Financial Management Act—consolidated financial report

Paper and statement by minister

MR BARR (Molonglo—Chief Minister, Treasurer, Minister for Economic Development, Minister for Urban Renewal and Minister for Tourism and Events): For the information of members, I present the following paper:

Financial Management Act, pursuant to section 26—Consolidated Financial Report—Financial quarter ending 30 June 2015—2014-15 Interim Result.

I ask leave to make a statement in relation to the paper.

Leave granted.

MR BARR: The June interim outcome headline net operating balance for the general government sector was a deficit of $483.1 million for the 2014-15 financial year. This deficit was $114 million lower than the estimated deficit at the time of the 2015-16 budget of $597.4 million. This reduction in the size of the deficit is mainly attributed to higher than forecast commonwealth grants due to the early payment of financial assistance grants in relation to the 2015-16 fiscal year; lower than forecast supplies and services expenses, mainly reflecting project expenditure delays and the decapitalisation of works for the Constitution Avenue project which were forecast to be expensed; the timing of payments as procurement processes are completed; and lower than forecast grants and purchase services, mainly due to the timing of payments for purchasers of properties under the asbestos eradication scheme.

Net debt for the GGS as at 30 June 2015 increased by $602.2 million from the 30 June 2014 result of $312.7 million. The net increase is mainly associated with the need for loan funding from the commonwealth to meet the costs of the asbestos eradication scheme. Net financial liabilities of the GGS as at 30 June 2015 increased by $1,357.5 million from the June 2014 result. This largely reflects a change in a defined benefit superannuation liability valuation estimate for 30 June 2015 based on a discount rate of 3.66 per cent compared to 4.08 per cent at 30 June 2014.

Taxation waivers in 2014-15 were $18.15 million lower than forecast. This relates to conveyance duty waivers for residents purchasing a new home as part of the asbestos eradication scheme. Instead of an instrument under the Financial Management Act being provided for each waiver, the asbestos legislation subsequently determined that these waivers would be treated as concessions; therefore, these waivers are now recognised as revenue forgone against the revenue from conveyances.

I commend the June interim report to the Assembly.

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