2016 17 state budget -...

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Mid-Year Budget Review

2016 17STATE

BUDGET

www.statebudget.sa.gov.au2016 17 State Budget

Acknowledgements

Content from this publication may be reproduced with appropriate acknowledgement, as permitted under the Copyright Act 1968.

© Government of South Australia 2016

2016−17 Budget PapersBudget Paper 1 Budget Overview

Budget Paper 2 Budget Speech

Budget Paper 3 Budget Statement

Budget Paper 4 Agency Statements — Volumes 1, 2, 3, 4

Budget Paper 5 Budget Measures Statement

Mid-Year Budget Review 2016–17

Presented by the Honourable Tom Koutsantonis MP

Treasurer of South Australia

General enquiries regarding financial information papers should be directed to:

Chief Executive Department of Treasury and Finance State Administration Centre 200 Victoria Square ADELAIDE SA 5000

Copies may be obtained from:

SERVICE SA Government Legislation Outlet Ground Floor EDS Building 108 North Terrace ADELAIDE SA 5000

Website: www.treasury.sa.gov.au

© Government of South Australia 2016

ISSN 1838-711X Public–I3–AI

Table of contents

Chapter 1: 2016–17 budget position and fiscal outlook

Overview ......................................................................................................................................................... 3 Fiscal outlook .................................................................................................................................................. 5 Operating revenue ........................................................................................................................................... 9 Expenditure ................................................................................................................................................... 12 Financial position .......................................................................................................................................... 18

Chapter 2: The economic context Overview ....................................................................................................................................................... 21

Appendix A: Policy measures by agency

Overview ....................................................................................................................................................... 23 Policy measures by agency ........................................................................................................................... 23

Appendix B: Uniform presentation framework

Overview ....................................................................................................................................................... 35 Uniform presentation framework tables ........................................................................................................ 36

Appendix C: General government and non-financial public sector financial statistics time series

General government sector ............................................................................................................................ 53 Non-financial public sector ........................................................................................................................... 58

Mid-Year Budget Review 2016–17 1

2 Mid-Year Budget Review 2016–17


Overview

The 2016–17 Mid-Year Budget Review (MYBR) demonstrates the government’s commitment to responsible budget management while also delivering better community services, spending on infrastructure and supporting jobs.

The government has returned the budget to surplus. A $300 million operating surplus was achieved in 2015–16, the first since 2009–10. Growing surpluses are predicted across coming years.

Recent budgets have contained significant measures to support the South Australian economy at a time of transition. Our plan is working. Employment has grown over the last 12 months and the state's unemployment rate has declined. The Jobs Accelerator Grant, announced in the 2016–17 Budget, is on track to support 14 000 new full time equivalent jobs over two years.

The government is also ramping up its infrastructure program to create jobs during the transition period between naval shipbuilding projects and to coincide with the closure of automotive manufacturing. The infrastructure program in the general government sector will grow from $1.2 billion in 2015–16 to $1.8 billion this financial year and a record $2.2 billion in 2017–18. This program is delivering much improved road infrastructure along our North-South corridor, improved public transport and new science labs in schools for our children. Our recently announced partnership with the local government sector will also leverage $125 million of new investment projects by councils.

New initiatives included in the 2016–17 MYBR include:

• $432 million additional funding over four years to strengthen families and our child protectionsystem in response to the recommendations of the Child Protection Systems Royal Commission.

• The automatic annual indexation of the cost of living, energy, water and sewerage concessions inline with CPI commencing from 1 July 2017 ($14.5 million over three years).

• A $31.0 million package to assist large market business customers with electricity costs, includingeducation and training and financial assistance to implement demand-side management and energyefficiency measures.

• Funding for the government’s response to the severe weather events of September 2016, includingrepairs to road infrastructure, emergency grants for those who suffered financial hardship as aresult of losing power, and the Virginia horticulture flood recovery package ($24.2 million). Thegovernment will also provide support to local councils to meet the cost of repairing storm damagein accordance with the Local Government Disaster Recovery Guidelines.

• Additional investment in prison capacity at the Adelaide Women’s Prison and Mount GambierPrison ($21.4 million).


The MYBR also incorporates revised revenue estimates across the forward estimates period. State taxation estimates have been revised down, predominantly as a result of lower than expected stamp duty revenues from residential property transactions. Mining royalty revenues are also lower than expected because of commodity price and exchange rate changes. Offsetting these impacts, expected revenues from GST grants have been revised higher due to an expected increase in South Australia's share of the national GST pool.

Further payments associated with the Motor Accident Commission (MAC) sale process beyond those contained in the 2016–17 Budget, have resulted in additional dividend and equity returns.

Overall the MYBR financial position remains similar to that presented in the 2016–17 Budget and is consistent with the government’s fiscal targets to deliver budget surpluses, and maintain spending growth and debt levels within affordable limits.

Fiscal targets

The government’s fiscal strategy focuses on ongoing sustainability whilst incorporating flexibility to accommodate the impacts of the economic cycle. To achieve this, the government remains committed to the fiscal targets set out in table 1.1.

Table 1.1: Fiscal targets

Target 1 Achieve a net operating surplus in the general government sector every year

Target 2 Limit operating expenditure growth to trend growth in household income

Target 3 Achieve a level of general government net debt that remains affordable over the forward estimates — a maximum ratio of net debt to revenue of 35 per cent

Underpinning the general government sector debt target, the government continues its commitment that:

• consistent with the government’s obligations under the Competition Principles Agreement,operations of public corporations that cannot be paid for from their own revenue streams will befunded from the budget

• the defined benefit unfunded superannuation liability will be fully funded by 2034.

Table 1.2 provides the outcome of the fiscal targets based on 2016–17 MYBR estimates.

Table 1.2: Fiscal targets outcomes — 2016–17 MYBR estimates

2016–17 MYBR

2017–18 Estimate

2018–19 Estimate

2019–20 Estimate

Target 1: net operating balance surplus Target Achieve a net operating surplus every year 2016–17 MYBR estimate ($m) 300 382 424 456

Target 2: operating expenditure growth Target (%) Limit to trend growth in household income (4.5% per annum) 2016–17 MYBR estimate (%)

– Annual (%) 5.7% 3.6% 0.3% 1.9% – Average (%) Average growth of 2.9% per annum

Target 3: net debt to revenue ratio Target (%) Less than 35% 2016–17 MYBR estimate (%) 33.7% 34.3% 34.3% 33.6%

The government’s fiscal targets are met across the forward estimates. As was the case at the 2016–17 Budget, operating expenditure growth for 2016–17 is above trend growth in household income, as a result of some one-off factors such as the timing of Commonwealth Government funding including



grants on-passed to local government and new policy initiatives including the Reform of the Child Protection System, and the government’s response to the severe weather events of September 2016.

Over the course of the forward estimates period, projected growth in operating expenditure is controlled well within the 4.5 per cent per annum growth target.

Fiscal outlook

Table 1.3 shows the movement in the key fiscal indicators for the general government sector since the 2016–17 Budget.

Table 1.3: Fiscal Outlook ― Budget and Mid-Year Budget Review ($million)

2016−17 2017−18 2018−19 2019−20 Net operating balance

Budget 254 415 464 466 MYBR 300 382 424 456 Change since 2016–17 Budget 46 - 33 - 41 - 10

Net lending Budget -2 436 - 310 44 52 MYBR -2 445 - 416 29 63 Change since 2016–17 Budget - 9 - 106 - 15 11

Net debt Budget 6 246 6 561 6 541 6 536 MYBR 6 189 6 538 6 576 6 571 Change since 2016–17 Budget - 57 - 23 35 35

Net debt to revenue ratio (%) Budget 34.2 34.7 34.5 33.7 MYBR 33.7 34.3 34.3 33.6 Change since 2016–17 Budget -0.5 -0.4 -0.2 -0.1

Unfunded superannuation Budget 12 178 11 842 11 471 11 065 MYBR 12 894 12 514 12 099 11 648 Change since 2016–17 Budget 716 672 628 583

Note: Totals may not add due to rounding.

Net operating balance surpluses are forecast across all years consistent with 2016–17 Budget forecasts and in adherence to the government’s fiscal target.

Net lending forecasts are broadly consistent with the 2016–17 Budget forecasts. The $106 million deterioration in net lending in 2017–18 is mainly due to an increase in capital expenditure since the 2016–17 Budget from policy decisions and timing changes.

Net debt projections have decreased for 2016–17 and 2017–18 since the 2016–17 Budget, resulting in lower net debt to revenue ratios. An increase in the return of equity from MAC is the main factor in improved net debt forecasts in those years.

The increase in the unfunded superannuation liability since the 2016–17 Budget is predominantly due to a reduction in the discount rate used to value the liability for the 2016–17 MYBR. Further details of the unfunded superannuation liability are provided later in Chapter 1.



The following table provides operating statement details for the general government sector for 2016–17 and the following three years.

Table 1.4: General government sector operating statement — 2016–17 to 2019–20 ($million)

2016–17 Budget

2016–17 MYBR

2017–18 Estimate

2018–19 Estimate

2019–20 Estimate

Revenue Taxation revenue 4 517 4 459 4 595 4 741 4 946 Grants 10 246 10 220 10 953 10 784 10 861 Sales of goods and services 2 487 2 464 2 562 2 634 2 708 Interest income 24 24 25 26 28 Dividend and income tax equivalent income 326 533 279 278 293 Other 664 642 661 702 717 Total revenue 18 263 18 342 19 075 19 164 19 553

less Expenses Employee expenses 7 899 7 946 8 167 8 251 8 390 Superannuation expenses

Superannuation interest cost 392 345 355 344 332 Other superannuation expenses 859 865 881 891 907

Depreciation and amortisation 963 916 1 022 1 064 1 067 Interest expenses 346 226 360 293 301 Other property expenses — — — — — Other operating expenses 4 613 4 681 4 879 5 012 5 181 Grants 2 937 3 065 3 028 2 885 2 919 Total expenses 18 009 18 043 18 693 18 741 19 097

equals Net operating balance 254 300 382 424 456

plus Other economic flows 1 124 1 746 741 730 721

equals Comprehensive result — total change in net worth 1 378 2 046 1 124 1 153 1 177

Net operating balance 254 300 382 424 456 less Net acquisition of non-financial assets Purchases of non-financial assets 4 630 4 599 2 217 1 500 1 500 less Sales of non-financial assets 976 938 397 41 39 less Depreciation 963 916 1 022 1 064 1 067 plus Change in inventories — — — — — plus Other movements in non-financial assets — — — — — equals Total net acquisition of non-financial assets 2 690 2 745 798 395 393

equals Net lending / borrowing -2 436 -2 445 - 416 29 63


In addition to the net operating balance, the major factors impacting on the comprehensive result (total change in net worth) are the movement in the value of net assets of public sector financial corporations and public non-financial corporations, and changes to the value of the state’s unfunded



superannuation liability. Under the Government Finance Statistics (GFS) accounting framework, these variations are not recorded as operating revenues or expenses, rather they are classified as other economic flows. A more detailed reconciliation of other economic flows appears in table B.16 of Appendix B.

The following tables outline changes to the net operating balance and net lending since the 2016–17 Budget classified as policy or parameter items. Policy items are decisions taken by the Government of South Australia since the 2016–17 Budget. Parameter items are generally variations outside the government’s control.

Table 1.5: Net operating balance — policy and parameter variations since the 2016−17 Budget ($million)

2016–17 2017–18 2018–19 2019–20 Estimate at 2016–17 Budget 254 415 464 466

Parameter and other variations Revenue — taxation - 58 - 61 - 58 - 77 Revenue — other 130 214 245 234 Operating expenses 110 - 28 - 77 - 2 Net effect of parameter and other variations 182 126 110 155

Policy measures Revenue measures — taxation — — — — Revenue measures — other — — — — Revenue offsets — taxation — — — — Revenue offsets 7 5 4 6 Operating expenses - 143 - 164 - 154 - 171 Net effect of policy measures - 136 - 159 - 151 - 165 Estimate at 2016–17 Mid-Year Budget Review 300 382 424 456


Table 1.6: Net lending ― policy and parameter variations since the 2016−17 Budget ($million)

2016–17 2017–18 2018–19 2019–20 Estimate at 2016–17 Budget -2 436 - 310 44 52

Net effect of operating variations to 2016–17 MYBR 46 - 33 - 41 - 10

Investing variations(a) Parameter variations - 31 - 32 29 24 Policy variations - 24 - 41 - 4 - 4 Total investing variations - 55 - 73 25 20 Estimate at 2016–17 Mid-Year Budget Review -2 445 - 416 29 63


(a) Investing variations relate to the movements in the net acquisition on non-financial assets.



Table 1.7: Major revenue and expense variations (parameter and other only) since the 2016−17 Budget ($million)

2016–17 2017–18 2018–19 2019–20 Revenue — taxation Payroll tax -4 -4 — 3 Conveyances -65 -56 -57 -62 Land tax — private — — — — Land tax — public -4 -4 -4 -5 Other property taxes 15 12 14 — Insurance taxes 6 -1 -1 -1 Gambling tax -6 -6 -6 -6 Motor vehicle taxes — -2 -4 -5 Total taxation revenue -58 -61 -58 -77

Revenue — other GST revenue grants -16 70 113 156 Commonwealth specific purpose and national partnership grants - SPP grants 1 — — — - NP grants -19 133 98 70 Other contributions and grants 4 2 -1 -2 Sales of goods and services -23 -26 -12 -12 Dividends and income tax equivalents 207 29 13 12 Interest income — — — 3 Royalties -12 -11 -9 -13 Other revenue -12 16 45 20 Total other revenue 130 214 245 234

Operating expenses Nominal superannuation interest expense 47 28 28 27 Interest expense 108 14 6 - 4 Depreciation 47 - 3 - 9 - 10 Carryovers (net of provision for slippage) 34 - 4 - 7 - 2 Other variations - 127 - 62 - 95 - 14 Total expenses 110 - 28 - 77 - 2

Net capital investment expenditure Depreciation - 47 3 9 10 Carryovers (net of provision for slippage) - 58 - 1 28 - 47 Other variations 75 - 33 - 8 61 Total net capital investment expenditure - 31 - 32 29 24




Operating revenue

Policy measures

There are no new revenue policy measures in the 2016–17 MYBR.

Parameter and other variations

Taxation revenue

Total taxation revenues have been revised down in all years, mainly due to revisions to conveyance duty.

Conveyance duty receipts have been lower than expected for residential property reflecting both lower than expected transactions and average duty growth. Non-residential transaction volumes have also been lower, however this has been offset by higher than expected growth in average duty. Residential transaction and average duty growth estimates have been reduced in 2016–17.

Year to date payroll tax collections have been broadly in line with original budget expectations in 2016–17. Only minor revisions to payroll tax collections have been made across the forward estimates.

Due to a timing issue, ESL revenue has been revised up in 2016–17, reflecting revenue related to 2015–16 liabilities that was not received until 2016–17. Revenue from NRM levies has increased over the period 2016–17 to 2018–19, to support higher expenditure by NRM boards primarily on water planning and management cost recoveries.

Gambling revenue has been revised down in all years, largely reflecting lower than expected year to date collections from gaming machines.

Insurance duty revenue has been revised up in 2016–17 reflecting the receipt of additional back payments associated with the treatment of life insurance riders.

GST revenue grants

GST grant revenue estimates have been revised up in each year from 2017–18 primarily reflecting changes to South Australia’s expected share of the GST pool, partially offset by reduced relative population estimates.

Revised estimates of South Australia’s grant share reflect updated data used in the Commonwealth Grant Commission’s wage cost assessment and revenue estimates included in other jurisdictions’ 2016–17 Budgets. The latest Australian Bureau of Statistics data used in the wage cost assessment has shown that South Australia’s adjusted private sector wage costs are closer to the national average, which results in an increase in South Australia’s GST share compared to estimates in the 2016–17 Budget. South Australia’s ability to raise revenue from conveyance duty has also declined relative to other jurisdictions reflecting the strength of the eastern states property market. These adjustments have contributed to an increase in South Australia’s estimated GST share from 2017–18.

South Australia’s population growth relative to the national average has been lower than forecast. This decreases South Australia’s expected share of the GST pool in all years.

GST pool forecasts are consistent with estimates contained in the 2016–17 Budget.

Commonwealth specific purpose and national partnership grants

Commonwealth national partnership (NP) grant estimates have been revised down in 2016–17, and up from 2017–18 onwards largely due to the timing of NP payments for a number of projects.



The downward revisions in 2016–17 are mainly due to the re-profiling of Commonwealth Government payments now expected to be paid in 2017–18. This includes payments for the Coorong, Lower Lakes and Murray Mouth project and the Goodwood and Torrens Rail Junctions Upgrade project. The upward revisions from 2017–18 are primarily a result of updated estimates of Commonwealth Government road funding, including the re-profiling of payments for the Northern Connector project, and the reclassification of Commonwealth revenue relating to older people in specialist disability services.

Other contributions and grants

Upward revisions to revenue from other contributions and grants in 2016–17 mainly reflect the recognition of external funding towards the establishment of factory operations at the new Port Augusta Sterile Insect Technology facility as well as the transfer of funding from Renewal SA to the Riverbank Authority for activities that will now be undertaken by the Riverbank Authority.

Sales of goods and services

Revenue from sales of goods and services has been revised down in all years due to lower Lands Title Office and health unit fees. The larger downward revisions in 2016–17 and 2017–18 reflect the reclassification of Commonwealth Government revenue relating to older people in specialist disability services, partially offset by increased revenue for the Aged Care Assessment Program.

Dividend and income tax equivalent income

Estimated dividend and income tax equivalent revenue has been revised up in 2016–17 primarily reflecting an additional $192 million dividend from MAC into the Highways Fund.

The upward revision from 2017–18 is mainly due to increased dividends and income tax equivalent payments from Renewal SA. A change in the depreciation method applied to TAFE SA properties following their transfer from the Department of State Development has resulted in a lower depreciation expense and increased profit, with a flow on effect to dividends and income tax equivalent payments.

Interest income

Interest income is estimated using projections of interest rates applicable to government financial assets. Compared with the estimates in the 2016–17 Budget, interest income has been revised upwards in 2019–20 due to higher than forecast interest rates on cash balances.

Royalties

Royalty revenue estimates have been revised down in all years primarily due to further falls in projected commodity prices and a slightly stronger Australian dollar than previously forecast. Uranium pricing has a lower outlook, while copper and heavy mineral sand prices are also expected to remain subdued. The gold price and the margin relating to iron ore sales are expected to improve, however that will not offset anticipated falls in the price of other commodities or lower production levels. Following the introduction of the state government program to incentivise gas production, the forward forecast is aligned to anticipate higher gas production, which offsets some impact from lower crude levels.

Other revenue

Other revenue has been revised down in 2016–17 and up in all other years. The downward revision in 2016–17 and the upward revision in 2018–19 primarily reflect a re-profiling of revenue associated with the Adelaide Festival Plaza Precinct upgrade due to timing of key stages of the project.

Other revenue is estimated to be higher from 2017–18 onwards primarily due to anticipated higher royalties received by SA Health associated with a new patent commencing in 2017–18.



Other revenue is estimated to be higher from 2017–18 onwards primarily due to anticipated higher royalties received by SA Health associated with a new patent commencing in 2017–18.

General government sector revenue

Forward estimates of general government revenues are shown in table 1.8.

Table 1.8: General government revenue — forward estimates ($million)

2016–17 Budget

2016–17 MYBR

2017–18 Estimate

2018–19 Estimate

2019–20 Estimate

Revenue — taxation Payroll tax 1 159 1 155 1 201 1 251 1 318 Conveyances 902 837 862 882 967 Land tax — private 366 366 378 389 402 Land tax — public 227 223 228 233 238 Other property taxes 407 422 428 439 431 Insurance taxes 443 449 459 477 497 Gambling tax 389 383 401 411 417 Motor vehicle taxes 625 624 640 658 676 Total taxation revenue 4 517 4 459 4 595 4 741 4 946

Revenue — other GST revenue grants 6 101 6 085 6 495 6 592 6 729 Commonwealth specific purpose and national partnership grants - SPP grants 2 990 2 830 2 967 2 994 3 120 - NP grants 1 011 1 156 1 351 1 064 882 Other contributions and grants 144 148 141 134 130 Sales of goods and services 2 487 2 464 2 562 2 634 2 708 Dividends and income tax equivalents 326 533 279 278 293 Interest income 24 24 25 26 28 Royalties 252 240 249 252 266 Other revenue 412 402 411 450 451 Total other revenue 13 746 13 883 14 480 14 424 14 607

Total revenue 18 263 18 342 19 075 19 164 19 553

Total revenue % change on previous year Total revenue nominal growth (%) 5.6 4.0 0.5 2.0 Total revenue real growth (%) 4.1 2.0 -1.5 -0.5


Growth in operating revenue in 2016–17 and 2017–18 is mainly driven by increases in GST grant revenue and Commonwealth Government capital grant funding, partially offset by decreases in dividend payments following payments from MAC in previous years. Negative real growth in 2018–19 and 2019–20 largely reflects a decline in Commonwealth Government national partnership grants, including for capital purposes.

The profile of Commonwealth Government capital grant funding reflects the timing of payments for projects including the Northern Connector road project, North South Corridor Darlington upgrade and the Goodwood and Torrens rail junctions.

It is expected that South Australia’s share of national GST will decrease from 10.2 per cent in 2017–18 to 9.6 per cent by 2019–20. The decline in South Australia’s share of the national GST



largely reflects the offset for a relative increase in the share of Commonwealth Government grant payments received by South Australia (between 2015–16 and 2017–18) and a decline in mining revenue, particularly in Western Australia, reducing transfers to the states with small mining sectors.

Expenditure

Policy measures

This section provides a summary of expenditure initiatives announced since the 2016–17 Budget. Full details of all policy measures and associated revenue offsets are shown in Appendix A.

The MYBR contains net operating and investing initiatives in the general government sector of $683.3 million over four years. These initiatives are summarised, by agency, in tables 1.10 and 1.11.

Table 1.9: Expenditure initiatives ($million)

2016–17 MYBR

2017–18 Estimate

2018–19 Estimate

2019–20 Estimate

Operating expenditure initiatives - 142.7 - 163.5 - 154.2 - 171.0 Revenue offsets 6.6 4.8 3.7 5.7 Total net operating initiatives - 136.1 - 158.8 - 150.6 - 165.3 Investing expenditure initiatives - 23.9 - 40.8 - 4.0 - 3.8 Total net investing initiatives - 23.9 - 40.8 - 4.0 - 3.8


The most significant new expenditure is $432 million over four years to reform the state’s child protection system in response to the Child Protection Systems Royal Commission report. Full details are provided in Appendix A.

Other major initiatives in the MYBR include:

• $51.5 million over four years to accelerate the recruitment of cadets to enable South AustraliaPolice to meet the government's commitment to recruit 313 officers locally by June 2018

• $31.0 million over two years to assist large market business customers with electricity costsincluding education and training and financial assistance to implement demand-side managementand energy efficiency measures

• $24.2 million in 2016–17 for the government’s response to the severe weather events ofSeptember 2016 including repairs to road and rail infrastructure and emergency assistance grants tohouseholds and businesses. A further $10 million has been pulled forward from 2018–19 to assistwith road repairs

• $24.2 million in 2016–17 to establish a targeted competitive grant program to accelerate gasexploration and production projects in the South Australian Cooper and Otway Basins

• $21.4 million over four years to increase the number of additional beds being delivered at MountGambier Prison from 112 beds to 160 beds and to establish 20 high security beds and upgradeessential infrastructure at the Adelaide Women’s Prison to meet prison demand pressures fromcontinued growth in prisoner numbers

• $20.0 million over two years to purchase an additional three trams and extend the tram line alongKing William Street from North Terrace to the Festival Plaza to improve tram operations at theintersection of King William Street and North Terrace

• $15.0 million over two years for the construction of an additional two levels on the new multi-deckcar park at the Flinders Medical Centre to provide additional spaces for public and staff parking



• $15.0 million over three years to increase the capacity of the New City High School by 250bringing the student capacity to 1250 to address the demand for secondary education within theinner city

• $14.5 million over three years to introduce annual indexation to a number of concessions providedto eligible South Australians on low or fixed incomes from 1 July 2017

• $12.5 million over four years (in addition to a further $3.0 million in 2020–21 and $2.0 million in2021–22) for the Art Gallery of South Australia to present the TARNANTHI Festival of Aboriginaland Torres Strait Islander Contemporary Arts annually from 2016–17 to 2021–22. The festival isfunded by BHP Billiton Olympic Dam Corporation Pty Ltd

• $9.0 million over three years as part of the government’s commitment to provide $30 million over10 years to support a State-Local Government Infrastructure Partnership program.

Table 1.10: Operating initiatives ($million)(a)

Agency 2016–17 MYBR

2017–18 Estimate

2018–19 Estimate

2019–20 Estimate

Attorney-General — — — — Auditor-General — — — — Child Protection — — — — Communities and Social Inclusion - 4.8 - 6.9 - 6.4 - 9.4 Correctional Services — — — — Courts - 0.3 - 0.6 - 0.6 - 0.6 Defence SA — — — — Education and Child Development — — — — Electoral Commission — — — — Emergency Services — CFS — — — — Emergency Services — MFS — — — — Emergency Services — SAFECOM — — — — Emergency Services — SES — — — — Environment Protection Authority — — — — Environment, Water and Natural Resources — — — — Green Industries SA — — — — Health and Ageing - 1.0 - 1.0 — — Legislature — — — — Planning, Transport and Infrastructure — - 3.0 - 3.0 - 3.0 Police - 9.7 - 16.2 - 15.4 - 10.0 Premier and Cabinet - 1.0 — — — Primary Industries and Regions - 4.7 - 0.3 — — State Development - 48.1 - 21.4 - 3.0 - 5.0 Tourism — — — — Treasury and Finance — — — — Across Government

Reform of the Child Protection System - 49.0 - 114.1 - 125.9 - 143.0 Severe weather events response - 24.2 — — —

Total operating initiatives - 142.7 - 163.5 - 154.2 - 171.0


(a) Excludes depreciation on investing initiatives.



Table 1.11: Investing initiatives ($million)

Agency 2016–17 MYBR

2017–18 Estimate

2018–19 Estimate

2019–20 Estimate

Attorney-General — — — — Auditor-General — — — — Child Protection — — — — Communities and Social Inclusion — — — — Correctional Services - 0.8 - 6.8 - 10.0 - 3.8 Courts — — — — Defence SA — — — — Education and Child Development - 3.0 - 8.0 - 4.0 — Electoral Commission — — — — Emergency Services — CFS — — — — Emergency Services — MFS — — — — Emergency Services — SAFECOM — — — — Emergency Services — SES — — — — Environment Protection Authority — — — — Environment, Water and Natural Resources — — — — Green Industries SA — — — — Health and Ageing - 9.0 - 6.0 — — Legislature — — — — Planning, Transport and Infrastructure - 5.0 - 15.0 — — Police - 0.2 — — — Premier and Cabinet - 1.0 — — — Primary Industries and Regions — — — — State Development — — — — Tourism — — — — Treasury and Finance — — — — Across Government

Severe weather events response - 5.0 - 5.0 10.0 — Total investing initiatives - 23.9 - 40.8 - 4.0 - 3.8


Parameter and other variations

A number of parameter variations since the 2016–17 Budget contribute to the change in projected expenses and investing payments in 2016–17 and across the forward estimates, including:

• updates to funding under the National Education Reform Agreement (NERA) mostly for enrolmentnumbers

• revision to estimates of depreciation expense reflecting latest asset values

• revision to interest expense reflecting latest estimates of interest rates and gross debt

• revision to nominal superannuation interest expense reflecting revised assumptions and investmentreturns

• variations to accounting treatment for some transactions that have no net budget impact but bothexpenses and revenue vary

• the reclassification of some transactions in accordance with accounting standards.

The MYBR includes a provision for operating slippage of $240.0 million and investing slippage of $410.0 million in 2016–17, to reflect the tendency, on a whole of government basis, for underspending against approved programs and initiatives in the current financial year.



General government operating expenditure

Forward estimates of general government expenses are shown in table 1.12.

Table 1.12: General government expenditure — forward estimates ($million)

2016–17 Budget

2016–17 MYBR

2017–18 Estimate

2018–19 Estimate

2019–20 Estimate

Employee expenses 7 899 7 946 8 167 8 251 8 390 Superannuation expenses

Superannuation interest cost 392 345 355 344 332 Other superannuation expenses 859 865 881 891 907

Depreciation and amortisation 963 916 1 022 1 064 1 067 Interest expenses 346 226 360 293 301 Other property expenses — — — — — Other operating expenses 4 613 4 681 4 879 5 012 5 181 Grants 2 937 3 065 3 028 2 885 2 919

Total expenses 18 009 18 043 18 693 18 741 19 097

Total expenses % change on previous year Total expenses nominal growth (%) 5.7% 3.6% 0.3% 1.9% Total expenses real growth (%) 4.2% 1.6% -1.7% -0.6%


Average growth in expenses of 2.9 per cent per annum from 2016–17 to 2019–20 remains below trend growth in household income (4.5 per cent per annum), consistent with the government’s fiscal target.

Employee expenses

The reform of the child protection system, in response to the recommendations of the Child Protection System Royal Commission, and the acceleration of the recruitment of police officers to enable South Australia Police to meet the government’s commitment to recruit 313 officers locally by June 2018, are the main contributors of higher employee expenses across the forward estimates since the 2016–17 Budget.

Superannuation expenses

The nominal superannuation interest expense has been revised down since the 2016–17 Budget largely due a lower discount rate applied to the liability.

Depreciation and amortisation

The main asset types comprising general government depreciation across the forward estimates are building and improvements, plant, equipment and vehicles and road network.

Depreciation expense in 2016–17 has been revised down since the 2016–17 Budget, primarily due to the change in timing for the commercial acceptance of the new Royal Adelaide Hospital, which for budgeting purposes at the time of finalising this document is assumed to be 15 April 2017. Growth in depreciation is then projected across the forward estimates as the new Royal Adelaide Hospital payments commence and projects are completed in line with the program of significant investment in the state’s infrastructure.



Interest expenses

Interest expenses comprise interest paid by the Treasurer to the South Australian Government Financing Authority (SAFA) on government borrowings and interest expenses of agencies related to finance leases.

Interest expense in 2016–17 has been revised down since the 2016–17 Budget, primarily due to the change in timing for the commercial acceptance of the new Royal Adelaide Hospital. The finance lease expense increases in 2017–18 with the commencement of full-year payments for the new Royal Adelaide Hospital and then reduces over the forward estimates, in line with projected service payments over the life of the lease.

Other operating (non-employee) expenses

General government other operating (non-employee) expenses for 2016–17 have been revised up since the 2016–17 Budget, principally from the responses to recommendations of the Child Protection Systems Royal Commission, and the severe weather events of September 2016. By 2019–20, expenditure is consistent with that published in the 2016–17 Budget.

Grants

Grant payments for 2016–17 have been revised up since the 2016–17 Budget due to carryovers from 2015–16 ($45 million) and new policy initiatives that provide grants in 2016–17 including the Energy Productivity Program for electricity costs ($17.5 million) and the program to Incentivise Gas Production from South Australian Gas Fields ($24.2 million).

Full-time equivalents (FTEs)

The estimated aggregate workforce levels in the general government sector across the forward estimates as at the 2016–17 MYBR are shown in table 1.13.

Table 1.13: General government sector employment

Full-time equivalent employees as at 30 June

2016 Estimate and Actual

2017 Estimate

2018 Estimate

2019 Estimate

2020 Estimate

As at 2016–17 Budget 81 759 81 231 81 002 80 776 80 926 As at 2016–17 Mid-Year Budget Review 81 388 81 623 81 576 81 163 81 236


The general government sector FTE numbers over the forward estimates are impacted by the reform of the Child Protection System and acceleration of the recruitment of cadets to meet the government’s commitment to recruit 313 officers locally by June 2018. In addition there were lower than budgeted actual FTEs in 2015–16, mainly due to an organisational restructure within the Department of Planning, Transport and Infrastructure and general vacancies across departments at 30 June 2016.

FTEs in the general government sector are estimated to decrease by 152 between 30 June 2016 and 30 June 2020. This compares to a decrease of 833 FTEs over the same period that was forecast at the time of the 2016–17 Budget.

The net impact of policy decisions reflected in the MYBR on general government sector FTEs over the forward estimates period is shown in table 1.14.



Table 1.14: Full-time equivalent impacts of policy decisions in the 2016–17 MYBR (FTEs as at 30 June)

2016–17 2017–18 2018–19 2019–20

Total FTE impact of policy decisions 322 521 527 403

The major policy decisions that have FTEs associated with them are:

• Responding to the recommendations of the Child Protection Systems Royal Commission — anincrease of 100 FTEs in 2016–17, rising to 329 FTEs by 2019–20

• Police — an increase of 183 FTEs in 2016–17, declining to 59 FTEs by 2019–20 to facilitate theaccelerated recruitment of cadets to meet the government's commitment to recruit 313 officerslocally by June 2018.

General government investing expenditure

Forward estimates of general government investing expenditure are shown in table 1.15.

Table 1.15: General government sector investing expenditure — forward estimates ($million)

General government investing expenditure 2016–17 Budget

2016–17 MYBR

2017–18 Estimate

2018–19 Estimate

2019–20 Estimate

Purchases of non-financial assets 1 810 1 779 2 217 1 500 1 500 New Royal Adelaide Hospital finance lease 2 820 2 820 — — — General government capital expenses 4 630 4 599 2 217 1 500 1 500

Purchases of non-financial assets are expected to be $1.8 billion in 2016–17 in addition to the recognition of the $2.8 billion finance lease liability for the new Royal Adelaide Hospital. The forward estimates contain a major infrastructure investment program of $9.8 billion in the general government sector over four years.

The government will maintain an infrastructure program of at least $1.5 billion per annum in the general government sector across the forward estimates.

The general government sector capital investment program reflects continued significant investment by the government in transport, health and education infrastructure. This includes joint state and Commonwealth Government upgrades to the North-South Corridor, major public transport projects, the redevelopment of metropolitan and country hospitals, and the major redevelopment of the Adelaide Festival Centre precinct in partnership with the private sector.

An increase in expenditure in 2017–18 since the 2016–17 Budget is mainly related to the re-profiling of capital projects including:

• Environment, Water and Natural Resources — $25.6 million relating to the South East FlowsRestoration project under the Coorong, Lower Lakes and Murray Mouth program

• Planning, Transport and Infrastructure — $23.8 million relating to the Goodwood and Torrens RailJunctions Upgrade and $10.5 million relating to the Darlington Upgrade

• State Development — $10.0 million relating to foyer upgrades for the Adelaide Festival CentrePrecinct.



Financial position

Tables 1.16 and 1.17 show the updated estimates for key balance sheet indicators for both the general government and non-financial public sectors.

Table 1.16: Key balance sheet indicators ― general government sector

As at 30 June 2016

Outcome 2017

Budget 2017

MYBR 2018

Estimate 2019

Estimate 2020

Estimate Net debt $m 4 393 6 246 6 189 6 538 6 576 6 571 % of total revenue 25.3 34.2 33.7 34.3 34.3 33.6

Unfunded superannuation $m 14 029 12 178 12 894 12 514 12 099 11 648 % of total revenue 80.8 66.7 70.3 65.6 63.1 59.6

Net financial liabilities $m 21 372 21 783 22 524 22 673 22 452 22 236 % of total revenue 123.1 119.3 122.8 118.9 117.2 113.7

Net financial worth $m -2 049 -1 184 -2 804 -2 525 -1 798 -1 058 % of total revenue -11.8 -6.5 -15.3 -13.2 -9.4 -5.4

Net worth $m 37 741 40 573 39 787 40 910 42 063 43 241 % of total revenue 217.4 222.2 216.9 214.5 219.5 221.2

Table 1.17: Key balance sheet indicators ― non-financial public sector

As at 30 June 2016

Outcome 2017

Budget 2017

MYBR 2018

Estimate 2019

Estimate 2020

Estimate Net debt $m 10 912 13 770 13 628 14 062 14 085 14 006 % of total revenue 59.1 71.2 70.2 69.9 69.7 68.0

Unfunded superannuation $m 14 029 12 178 12 894 12 514 12 099 11 648 % of total revenue 76.0 62.9 66.4 62.2 59.8 56.5

Net financial liabilities $m 28 281 29 406 30 157 30 386 30 138 29 836 % of total revenue 153.2 152.0 155.2 151.0 149.0 144.8

Net financial worth $m -27 355 -27 985 -29 301 -29 611 -29 369 -29 083 % of total revenue -148.2 -144.6 -150.8 -147.2 -145.2 -141.1

Net worth $m 37 741 40 573 39 787 40 910 42 063 43 241 % of total revenue 204.4 209.7 204.8 203.3 208.0 209.8



Net debt

General government net debt is forecast to be $6.2 billion at 30 June 2017, a $57 million improvement from the estimate as at 2016–17 Budget, and is projected to be $6.6 billion as at 30 June 2020 ($35 million above the projected debt in the 2016–17 Budget).

Net debt in 2017 reflects the initial recognition of the new Royal Adelaide Hospital, which will continue to be reflected across the forward estimates as the $2.8 billion finance lease is amortised over the life of the agreement.

Since the 2016–17 Budget there have been additional contributions from the Motor Accident Commission (MAC). MAC’s better than expected profit for 2015–16 has resulted in additional dividends paid in 2016–17, and additional release of liability provisions has provided increased return of equity in 2016–17 and 2017–18. Total releases from MAC now total $2.5 billion (up from $2.1 billion as at the 2016–17 Budget)

Table 1.18: Return to government from the privatisation of the Motor Accident Commission ($million)

2014–15 Outcome

2015–16 Outcome

2016−17 MYBR

2017−18 Estimate

2018−19 Estimate

2019−20 Estimate Total

Dividends 459 404 298 — — — 1 161

Return of equity(a) 394 45 650 160 56 34 1 339

Total Releases and Approval Fee 853 449 948 160 56 34 2 499

Change since 2016–17 Budget

Dividends 192 — — — 192

Return of equity 135 100 — — 235

Total change since 2016–17 Budget 327 100 — — 427


(a) Includes Private Insurer Approval Fee

A general government net debt to revenue ratio of 33.7 per cent is forecast at 30 June 2017, 0.5 percentage points lower than at the 2016–17 Budget. The net debt to revenue ratio is expected to peak at 34.3 per cent in June 2018 before declining to 33.6 per cent in June 2020. The government’s fiscal target to maintain a maximum general government sector net debt to revenue ratio of less than 35 per cent is achieved.

The net debt of the public non-financial corporations (PNFC) sector is expected to be $7.44 billion at 30 June 2017. The PNFC sector includes SA Water which makes up the largest component (approximately 85 per cent) of net debt in that sector.

The combined non-financial public sector (NFPS) net debt as at 30 June 2017 is expected to be $13.6 billion, a $142 million improvement since 2016–17 Budget, of which $85 million is attributable to improvements in the PNFC sector. At 30 June 2020, NFPS net debt is projected to be $14.0 billion. The change in NFPS net debt across the forward estimates is predominantly driven by changes in the general government sector.

Unfunded superannuation

Since the 2016–17 Budget, the state’s estimated unfunded superannuation liability has increased in each year across the forward estimates. This is largely due to a decrease in the discount rate used to value the liability from 3.2 per cent at the 2016–17 Budget to 2.8 per cent for the 2016–17 MYBR.



The lower discount rate reflects the Commonwealth Government bond rate consistent with the average maturity of the liability, in accordance with Australian Accounting Standards, and results in an increase in the present value of future superannuation obligations.

The net impact of earnings on superannuation assets has partially offset the impact of the lower discount rate across all years. The actual earnings rate for 2015–16 was 3.8 per cent compared to the estimate of 2.1 per cent at the 2016–17 Budget. However, earnings on superannuation assets for 2016–17 are currently projected to be 6.2 per cent compared with 7.0 per cent at the time of the 2016–17 Budget. The annual earnings rate assumption from 2017–18 onwards is still 7.0 per cent, reflecting the long-term earnings rate target.

The net result of variations in earnings, the discount rate and other minor adjustments is an increase of $716 million in the estimated unfunded superannuation liability at 30 June 2017 compared with the estimate in the 2016–17 Budget. The unfunded superannuation liability is now expected to be $12.9 billion at 30 June 2017, reducing over the forward estimates to $11.6 billion by 30 June 2020.

It should be noted that the unfunded liability is a long-term liability. While financial market volatility in the recent past has resulted in multi-billion dollar revisions to the value of the liability recorded on the balance sheet, there has been no material change in the actual expected payments to beneficiaries underlying the liability.

The government remains committed and on track to meet its target of fully funding the defined benefit superannuation liability by 2034.

The change in the book value of the liability resulting from the updated assumptions is reflected in the operating statement under the other economic flows — refer to table 1.4 in this chapter and table B.16 in Appendix B.

Net financial liabilities

General government sector net financial liabilities are forecast to be $22.5 billion at 30 June 2017, peaking at $22.7 billion at 30 June 2018 before reducing to $22.2 billion at 30 June 2020. This is an increase in each year across the forward estimates compared to the 2016–17 Budget, driven by the increase in the unfunded superannuation liability as outlined above.



Chapter 2: The economic context

Overview

The world economy’s pattern of moderate growth continues, although downside risks remain, with the International Monetary Fund (IMF) in October once again revising downward its global growth forecast for 2016 to 3.1 per cent (down from 3.2 per cent forecast earlier in the year). The 2017 forecast was also revised downward to 3.4 per cent. China’s economy continues to slow, as expected.

The Australian economy expanded in 2015–16, growing by 2.7 per cent, up from 2.4 per cent recorded in 2014–15. Growing exports arising from increased mineral production capacity, along with growth in household and government spending and residential construction activity were the main drivers. Recently released national accounts data, however, suggest that the Australian economy weakened in the September quarter and annual GDP growth slipped to 2.2 per cent in trend terms. Commodity prices have stayed relatively low despite some recovery in recent months. Lower commodity prices and reduced demand for commodities has impacted mining investment activity in Australia, with the scaling back of mining investment projects at the same time as many existing projects are being completed. In addition, most indicators of business investment intentions and non-residential construction activity suggest that overall non-mining business investment will remain subdued in the near term. While accommodative monetary policy has assisted investment in housing, predominantly in Sydney and Melbourne, this is showing signs of having peaked. Nonetheless, the number of building approvals suggests the amount of work in the pipeline will contribute to growth over the next two years.

The Australian dollar is expected to remain low enough to continue to provide some assistance with the adjustment of the economy to the lower terms of trade. The Reserve Bank of Australia (RBA) in its latest Statement on Monetary Policy is forecasting national GDP growth of 2½–3½ per cent per annum for 2016–17 and 2017–18, adding that resource exports are likely to make a further significant contribution to GDP growth, as exports of liquefied natural gas continue to rise.

The South Australian economy grew by 1.9 per cent in 2015–16 and employment has grown by 9800 or 1.2 per cent in the 12 months to October 2016.

State Final Demand (SFD) data for the September quarter 2016 shows continued solid growth in household and government spending and government investment in South Australia, with annual SFD growth of 1.6 per cent.

A lower Australian dollar has benefited South Australian non-mining export industries. Growth in agribusiness, international education and tourism, have supported the South Australian economy over the last 12 months. The volume of South Australia’s overseas goods exports in 2015–16 was 11 per cent higher than in the previous year. The volume of services exports was also strong, rising by 12 per cent in 2015–16.

The growth in services exports reflects growing international student enrolments which were 8.3 per cent higher in the year to September 2016 compared with the same period a year earlier, and growing tourism with international tourist numbers up by 9.6 per cent in the year to September 2016. Spending by international tourists grew by 19 per cent over the same period.

In recent years the state’s agricultural sector has experienced a string of favourable seasons and while the state’s 2015–16 winter crop production is estimated to be lower than for the 2014–15 season (down 3.6 per cent), the Australian Bureau of Agricultural Resource Economics and Sciences is


currently forecasting the 2016–17 winter crop to be the highest on record, up by 37 per cent on last year’s crop. The 2016–17 bumper crop presents a potential upside to the 2016–17 GSP growth forecast.

Economic Forecasts

Economic forecasts in the Mid-Year Budget Review are largely unchanged from those presented at Budget time, with the Consumer Price Index (CPI) being the only economic parameter to be amended. CPI growth forecasts have been revised downward by ¼ of a percentage point in both 2016–17 and 2017–18 and by ½ of a percentage point in 2018–19.

In South Australia, GSP is estimated to grow by 2 per cent in real terms in 2016–17, supported by continued growth in agribusiness, tourism and the government capital programs including the South Road Torrens to Torrens project and the Darlington Upgrade. GSP is forecast to increase by 2¼ per cent in 2017–18 and continue at that rate through to 2019–20.

Employment growth in South Australia is expected to be ¾ per cent in 2016–17 (consistent with the Budget forecast) increasing to 1 per cent from 2017–18. South Australia’s unemployment rate was 6.6 per cent in October, down from 7.5 per cent a year earlier.

Forecasts and projections for South Australia take into consideration the expected performance of the national economy over the medium term and relative population growth rates and spare capacity in the South Australian economy.

Table 2.1: Key economic indicators ― Australia and South Australia real growth rates (% per annum)

2015–16 Actual

2016–17 Budget

Forecast

2016–17 Revised

Forecast 2017–18

Projection 2018–19

Projection 2019–20

Projection

Australia(a) Gross Domestic Product (GDP) 2.7 2½ n.a. 3 3 3 South Australia Gross State Product (GSP) 1.9 2 2 2¼ 2¼ 2¼ State Final Demand (SFD) 1.2 2 2 2¼ 2¼ 2¼ Employment 0.5 ¾ ¾ 1 1 1 Adelaide Consumer Price Index (CPI) 0.9 1¾ 1½ 2 2 2½

Note: Forecasts and projections are based largely on underlying national economic and state population trends, climatic conditions impacting on farm sector production and emerging major projects.

(a) Australian forecasts are from the Australian Government 2016–17 Budget


Chapter 2: The economic context


Overview

This appendix describes the revenue measures and expenditure initiatives in the general government sector since the 2016−17 Budget.

Increased expenditures are recorded as negative ( - ) items, while increased revenues are recorded as positive ( + ) items.

Revenue offsets in this section include revenues received from external parties, including the Commonwealth Government, for the specific purpose of, and incidental to, an expenditure initiative.

Initiatives are typically ongoing in nature unless an explicit Cabinet decision is made to the contrary.

Table A.1: Policy measures ($million)

2016–17 MYBR

2017–18 Estimate

2018–19 Estimate

2019–20 Estimate

Revenue measures — Taxation — — — — Revenue measures — Other — — — — Operating expenditure initiatives(a) - 142.7 - 163.5 - 154.2 - 171.0 Revenue offsets — Taxation — — — — Revenue offsets — Other 6.6 4.8 3.7 5.7 Operating savings — — — — Total operating initiatives - 136.1 - 158.8 - 150.6 - 165.3

Investing expenditure initiatives - 23.9 - 40.8 - 4.0 - 3.8 Revenue offsets — — — — Investing savings — — — — Asset sales — — — — Total investing initiatives - 23.9 - 40.8 - 4.0 - 3.8


(a) Excludes depreciation on investing initiatives.

Details of these items are included in the following tables.

Across Government

Reform of the Child Protection System

Budget implications ($000)

———————————————————————————————————————————————————————–—2016–17 2017–18 2018–19 2019–20

MYBR Estimate Estimate Estimate———————————————————————————————————————————————————————–—Operating expenses -49 026 -114 104 -125 885 -142 969———————————————————————————————————————————————————————–—Full time equivalents 100 339 389 329———————————————————————————————————————————————————————–—


This initiative provides $432 million, over four years, to reform the state's child protection system in response to the Child Protection Systems Royal Commission report on children in care.

The Royal Commissioner's report, delivered on 5 August 2016, made 260 recommendations for improvements to the state's child protection system.

On 29 November 2016, the government released its response to the Royal Commission's findings which aims to improve outcomes for vulnerable children, their families and the broader South Australian community. The government has accepted 196 of the Royal Commissioner's recommendations in full and a further 60 in principle.

The reform focuses on early intervention and prevention and a system-level reorientation to the child protection system.

The government’s commitment of $432 million for state-wide child protection reform and additional support for children in out of home care includes:

• $299 million for additional staff, resources and new initiatives in out of home care, including torecognise the recent growth experienced in the number of children in out of home care

• An additional $45 million for early intervention programs and services, including:

– the establishment of an Early Intervention Research Directorate

– funding to continue the Family by Family program for a further four years

– $9 million to establish three pilot Child and Family Assessment and Referral Networks, withone to be located in the north, one centrally, and one focusing on southern metropolitanAdelaide

– A further $5 million per annum for early intervention programs and services

• $26 million to improve the government’s investigations and response capabilities, including anadditional $10 million for professional development and training of Department for ChildProtection staff

• $13 million to improve the Child Abuse Report Line

• an additional $10.8 million to support young people transitioning from care

• $6 million to establish the Office of the Commissioner for Children and Young People, and

• $6 million to establish a Child Protection Service at the Lyell McEwin Hospital.



Severe weather events response


————————————————————————————————————————————————————————2016–17 2017–18 2018–19 2019–20

MYBR Estimate Estimate Estimate————————————————————————————————————————————————————————Operating expenses -24 249 — — —Investing payments -5 000 -5 000 10 000 —————————————————————————————————————————————————————————

This initiative provides $24.2 million in 2016–17 (in addition to $10 million in investing expenditure which will be pulled forward from 2018–19) to fund the government’s response to the severe weather events of September 2016. This includes:

• an additional $11.0 million plus the pull forward of expenditure for repairs to road and railinfrastructure

• $9.0 million for grants of up to $700 per household for those who suffered financial hardship as aresult of losing power from 3:50 pm on 28 September to at least 12 pm on 29 September during thestate wide power outage, emergency assistance grants of up to $700 for people unable to accesstheir homes and grants of up to $700 per household to assist those directly impacted by costs ofimmediate clean up

• $3.4 million package to assist the northern Adelaide Plains horticulture growers recover from theflooding that occurred. This includes grants of up to $10 000 for eligible businesses for clean-upand urgent reinstatement works, water removal, the establishment of a recovery centre and theprovision of business recovery and technical advice, damage assessment and coordination of wastecollection

• $300 000 towards funding the repair of jetties and other marine infrastructure damaged by severeweather. The total cost of repair of $4.4 million is largely covered by insurance.

The government will also provide support to local councils to meet the costs of repairing storm damage in accordance with the Local Government Disaster Recovery Guidelines. That amount is yet to be determined.

Department for Communities and Social Inclusion

Adelaide Youth Training Centre


————————————————————————————————————————————————————————2016–17 2017–18 2018–19 2019–20

MYBR Estimate Estimate Estimate————————————————————————————————————————————————————————Operating expenses -1 381 -1 409 -1 437 -1 466————————————————————————————————————————————————————————Full time equivalents 10 10 10 10————————————————————————————————————————————————————————

This initiative provides $1.4 million per annum (indexed) for increased staffing at the Adelaide Youth Training Centre to ensure a safer environment for staff. It provides additional operational staff (10 FTEs), the reclassification of night officers to higher levels and increased management supervision.



Disability Reform


————————————————————————————————————————————————————————2016–17 2017–18 2018–19 2019–20

MYBR Estimate Estimate Estimate————————————————————————————————————————————————————————Operating expenses -2 300 -2 400 — —————————————————————————————————————————————————————————Full time equivalents 18 18 — —————————————————————————————————————————————————————————

This initiative provides $2.3 million (indexed) in 2016–17 and 2017–18 to support the transition to full implementation of the National Disability Insurance Scheme (NDIS).

It provides additional resources to achieve the work and timeframes agreed to successfully transition South Australians to the NDIS as detailed in the Operational Plan supporting the Bilateral Agreement between the Commonwealth and state governments.

Indexation of utility related concessions


————————————————————————————————————————————————————————2016–17 2017–18 2018–19 2019–20

MYBR Estimate Estimate Estimate————————————————————————————————————————————————————————Operating expenses — -2 300 -4 600 -7 600————————————————————————————————————————————————————————

This initiative provides additional funding from 2017–18 to introduce annual indexation of a number of concessions provided to eligible South Australians on low or fixed incomes. The following concessions will be indexed by CPI from 1 July 2017:

• energy concession

• medical heating and cooling concession

• cost of living concession

• water concession, and

• sewerage concession.

The maximum concession for an eligible household is expected to increase by more than $16 in 2017–18, with the maximum concession expected to increase by around $54 for eligible households by 2019–20.

Keeping Women Safe in Their Homes


————————————————————————————————————————————————————————2016–17 2017–18 2018–19 2019–20

MYBR Estimate Estimate Estimate————————————————————————————————————————————————————————Operating revenue 740 450 — —Operating expenses -740 -450 — —————————————————————————————————————————————————————————

The Commonwealth Government will provide $1.19 million over two years for the ‘Keeping Women Safe in Their Homes’ domestic violence program. These funds will be provided to the Victim Support Service which will manage the program under a service agreement.



The National Initiative aims to achieve positive outcomes for families, women and their children by working across sectors to improve the safety and wellbeing of children, advancing gender equality and reducing violence against women and their children.

Women's Domestic Violence Court Assistance Service


————————————————————————————————————————————————————————2016–17 2017–18 2018–19 2019–20

MYBR Estimate Estimate Estimate————————————————————————————————————————————————————————Operating expenses -353 -360 -367 -376————————————————————————————————————————————————————————

This initiative provides an additional $353 000 per annum (indexed) for the Women's Domestic Violence Court Assistance Service to be funded from the Victims of Crime Fund.

The court assistance service provides free legal advice, support and advocacy for women applying for an intervention order, reporting breaches of an intervention order, or ending a tenancy agreement because of domestic violence.

Department for Correctional Services

Additional Prisoner Accommodation — Adelaide Women's Prison


————————————————————————————————————————————————————————2016–17 2017–18 2018–19 2019–20

MYBR Estimate Estimate Estimate————————————————————————————————————————————————————————Investing payments -300 -3 700 -10 000 -3 800————————————————————————————————————————————————————————

This initiative provides $17.8 million in investing expenditure to establish 20 high security beds at the Adelaide Women's Prison to meet prison demand pressures from continued growth in prisoner numbers. This initiative also includes funding for an upgrade of the essential infrastructure.

Additional Prisoner Accommodation — Mount Gambier Prison


————————————————————————————————————————————————————————2016–17 2017–18 2018–19 2019–20

MYBR Estimate Estimate Estimate————————————————————————————————————————————————————————Investing payments -469 -3 127 — —————————————————————————————————————————————————————————

Funding for the construction of an additional 112 beds at Mount Gambier Prison was provided in the 2014–15 Mid-Year Budget Review. This initiative provides a further $3.6 million in investing expenditure to increase the number of additional beds to 160 beds to meet medium term prison demand pressures from continued growth in prisoner numbers.



Courts Administration Authority

Additional Magistrate


————————————————————————————————————————————————————————2016–17 2017–18 2018–19 2019–20

MYBR Estimate Estimate Estimate————————————————————————————————————————————————————————Operating expenses -282 -574 -586 -598————————————————————————————————————————————————————————Full time equivalents 3 3 3 3————————————————————————————————————————————————————————

This initiative provides $282 000 in 2016–17 and $574 000 per annum (indexed) from 2017–18, for the appointment of an additional Magistrate and associated costs, to manage increased volumes of family violence matters.

Department for Education and Child Development

New City High School Expansion


————————————————————————————————————————————————————————2016–17 2017–18 2018–19 2019–20

MYBR Estimate Estimate Estimate————————————————————————————————————————————————————————Investing payments -3 000 -8 000 -4 000 —————————————————————————————————————————————————————————

This initiative provides $15.0 million over three years from 2016–17 to increase the capacity of the New City High School by 250 students, bringing the student capacity to 1250, to meet increased demand for secondary education within the inner city.

This additional investment brings the total capital budget for the New City High School to $100 million.

Department for Health and Ageing

Beat Cancer Project — grant funding


————————————————————————————————————————————————————————2016–17 2017–18 2018–19 2019–20

MYBR Estimate Estimate Estimate————————————————————————————————————————————————————————Operating expenses -1 000 -1 000 — —————————————————————————————————————————————————————————

This initiative provides $2 million over two years to continue the government investment in the work of the Cancer Council SA through the Beat Cancer Project. The Beat Cancer Project funded 180 research initiatives over the last five years. By leveraging external funding, the project sees more than $4 of cancer research funded in South Australia for every dollar of taxpayer funds invested.



The current funding agreement for the Beat Cancer Project expired on 30 June 2016. The Department for Health and Ageing has committed a further $1 million per annum for five years towards the project from 2016–17 and this initiative will increase the total funding commitment of government to $7 million over five years.

Flinders Medical Centre car parking


————————————————————————————————————————————————————————2016–17 2017–18 2018–19 2019–20

MYBR Estimate Estimate Estimate————————————————————————————————————————————————————————Operating revenue — — 1 675 1 675Investing payments -9 000 -6 000 — —————————————————————————————————————————————————————————

This initiative provides $15.0 million for the construction of an additional two levels on the new multi-deck car park at the Flinders Medical Centre to provide additional spaces for public and staff parking. This will result in additional revenue of $1.7 million per annum from 2018–19 associated with the additional parking spaces.

Department of Planning, Transport and Infrastructure

Purchase of additional trams and tram network management


————————————————————————————————————————————————————————2016–17 2017–18 2018–19 2019–20

MYBR Estimate Estimate Estimate————————————————————————————————————————————————————————Investing payments -5 000 -15 000 — —————————————————————————————————————————————————————————

This initiative provides $15.0 million over 2016–17 and 2017–18 to purchase an additional three trams to support the high frequency and highly reliable service for the City Tram Extension along North Terrace. This initiative also provides an additional $5.0 million in 2017–18 to extend the tram line along King William Street from North Terrace to the Festival Plaza, to improve tram operations at the intersection of King William Street and North Terrace.

State-Local Government Infrastructure Partnership


————————————————————————————————————————————————————————2016–17 2017–18 2018–19 2019–20

MYBR Estimate Estimate Estimate————————————————————————————————————————————————————————Operating expenses — -3 000 -3 000 -3 000————————————————————————————————————————————————————————

This initiative provides $3.0 million per annum from 2017–18 for 10 years as part of a state government commitment to support the State-Local Government Infrastructure Partnership program.

This will enable local government to apply for up to 20 per cent funding for eligible infrastructure projects and will facilitate investment in new infrastructure of around $125 million.



South Australia Police

Operational policing — accelerated recruitment Budget implications ($000)

———————————————————————————————————————————————————————— 2016–17 2017–18 2018–19 2019–20 MYBR Estimate Estimate Estimate ———————————————————————————————————————————————————————— Operating expenses -9 700 -16 200 -15 400 -10 000 Investing payments -200 — — — ———————————————————————————————————————————————————————— Full time equivalents 183 148 123 59 ————————————————————————————————————————————————————————

This initiative provides additional funding to accelerate the recruitment of police officers to enable South Australia Police to meet the government’s commitment to recruit 313 officers locally by June 2018. This includes funding for training, cadet screening and marketing.

Department of the Premier and Cabinet

France Engagement Strategy Budget implications ($000)

———————————————————————————————————————————————————————— 2016–17 2017–18 2018–19 2019–20 MYBR Estimate Estimate Estimate ———————————————————————————————————————————————————————— Operating expenses -1 000 — — — ———————————————————————————————————————————————————————— Full time equivalents 4 — — — ————————————————————————————————————————————————————————

The France Engagement Strategy aims to maximise the economic and job opportunities for South Australia presented by the Commonwealth government selection of DCNS for the submarine contract, including enhancing the capability of local industries to participate in the supply chain, developing a local workforce with the required skills, and identifying broader social and cultural opportunities for the state.

The 2016–17 Budget provided $1.0 million per annum from 2016–17 for this purpose.

This initiative provides an additional $1 million in funding for 2016–17 to expand the state's engagement with France through additional promotional measures such as the development of a SA-French web portal for potential French investors and an increased on the ground presence in France.



State Governor's Establishment

Government House Refurbishment Budget implications ($000)

———————————————————————————————————————————————————————— 2016–17 2017–18 2018–19 2019–20 MYBR Estimate Estimate Estimate ———————————————————————————————————————————————————————— Investing payments -970 — — — ————————————————————————————————————————————————————————

This initiative provides $970 000 in 2016–17 ($520 000 of new funding to supplement $450 000 provided from the State Heritage Fund) to complete the replacement of the slate roof and repaint two external walls of Government House.

Department of Primary Industries and Regions

National Water Infrastructure Development Fund — Feasibility Studies Budget implications ($000)

———————————————————————————————————————————————————————— 2016–17 2017–18 2018–19 2019–20 MYBR Estimate Estimate Estimate ———————————————————————————————————————————————————————— Operating revenue 3 400 300 — — Operating expenses -3 400 -300 — — ———————————————————————————————————————————————————————— Full time equivalents 2 1 — — ————————————————————————————————————————————————————————

The Commonwealth Government is contributing funds towards feasibility studies into two potential water infrastructure projects (Northern Adelaide Irrigation Scheme and Northern Reservoirs Upgrade) in South Australia through the National Water Infrastructure Development Fund.

The Northern Adelaide Irrigation Scheme project aims to use an additional 20 gigalitres of recycled water from the Bolivar Waste Water Treatment Plant for the Northern Adelaide Plains.

The Northern Reservoirs Upgrade aims to access unused water from existing reservoirs at Baroota, Beetaloo and Bundaleer to develop high value agriculture in the Mid-North of South Australia.

The South Australian contribution towards the feasibility studies includes a combination of reallocating existing government resources and support from private sector proponents.

Orana Foundation


———————————————————————————————————————————————————————— 2016–17 2017–18 2018–19 2019–20 MYBR Estimate Estimate Estimate ———————————————————————————————————————————————————————— Operating expenses -1 250 — — — ————————————————————————————————————————————————————————

This initiative provides $1.25 million in 2016–17 to enable South Australia to gain a leadership position in the research, cultivation and production of Australian native wild foods, creating specialised science and research based jobs, and promoting South Australia as a centre for food



innovation combining indigenous traditional knowledge with food science and contemporary culinary practice.

A grant will be provided to the Orana Foundation to launch pilot projects within Indigenous communities and establish:

• an online comprehensive native food database to capture and preserve knowledge gathered from Indigenous communities, early settlers, anthropologists and botanists

• an Australian Food Culture Enterprise employing an innovative combination of culinary and food science expertise to identify, test and analyse a wider range of ingredients suitable for food preparation and health products

• an enterprise hub to directly support product cultivation projects, skills and leadership training, market development and product placement and supply.

Benefits to the indigenous community will include the preservation of traditional knowledge of the land and native ingredients, reconnecting young Indigenous people through education and training and the creation of sustainable commercial enterprise within remote Indigenous communities, based around the core cultural importance of knowledge and relationship to the land and native foods.

Department of State Development

Health Industries SA Business Attraction Budget implications ($000)

———————————————————————————————————————————————————————— 2016–17 2017–18 2018–19 2019–20 MYBR Estimate Estimate Estimate ———————————————————————————————————————————————————————— Operating expenses -3 000 -3 000 — — ————————————————————————————————————————————————————————

This initiative provides $6.0 million over the next two years to Health Industries South Australia to provide targeted investment incentives for health sector companies to commercialise and scale up operations in the state. The Health Industries Fund will help grow this strategic economic sector by addressing companies’ needs with direct support.

Health Industries South Australia was established in 2014 as an inbound investment attraction agency to help companies in the health sector to establish or expand in the state.

Incentivise gas production from South Australian gas fields Budget implications ($000)

———————————————————————————————————————————————————————— 2016–17 2017–18 2018–19 2019–20 MYBR Estimate Estimate Estimate ———————————————————————————————————————————————————————— Operating expenses -24 200 — — — ————————————————————————————————————————————————————————

This initiative provides $24.2 million to establish a targeted competitive grant program to accelerate gas exploration and production projects in the South Australian Cooper and Otway Basins.

The program is intended to increase investment in new technologies to lift well productivity, new gas exploration wells in proximity to existing gas infrastructure, and new gas processing and transport facilities, in order to increase the amount of contracted gas supplies within 12 to 36 months.



Energy Productivity Program


————————————————————————————————————————————————————————2016–17 2017–18 2018–19 2019–20

MYBR Estimate Estimate Estimate————————————————————————————————————————————————————————Operating expenses -17 512 -13 500 — —————————————————————————————————————————————————————————

This initiative provides $31.0 million over two years to assist large market business customers with electricity costs.

Financial assistance will be provided for large market business customers to implement demand-side management and energy efficiency measures. This will include grants for businesses to undertake energy audits and grants towards implementation of measures identified in the audits which includes assistance with capital outlays.

Education and training on energy efficiency and demand management will also be provided for large market customers. This will include workshops and information about demand-side management strategies and development of case studies, as well as general information about South Australia’s electricity market.

The program will provide $7.5 million for up to 500 of South Australia’s large energy using businesses to conduct an audit to identify energy savings opportunities with significant energy costs savings and broader market benefits. Audits will be completed by June 2017 and businesses that are successful for energy audit funding will receive 75 per cent of the cost of the audit from the government.

Businesses which conduct an audit or have already completed a recent audit acceptable to the Government of South Australia will be able to apply for an implementation grant for energy saving measures, with a preference for projects which provide broader market benefits to South Australia.

$8.5 million of the implementation funding will support at least 110 businesses to implement an energy saving opportunity with a grant of up to $75 000 on a 1:1 funding basis.

$15 million of the implementation funding will support at least 6 major energy saving opportunities, with grants of up to $2.5 million based on $1 of government grant funding for $2 of business contribution.

The program will complement the existing Retailer Energy Efficiency Scheme, which initially commenced in January 2009 and currently provides incentives for South Australian households and small businesses to save energy.

TARNANTHI Festival of Aboriginal and Torres Strait Islander Contemporary Arts


————————————————————————————————————————————————————————2016–17 2017–18 2018–19 2019–20

MYBR Estimate Estimate Estimate————————————————————————————————————————————————————————Operating revenue 2 500 4 000 2 000 4 000Operating expenses -2 500 -4 000 -2 000 -4 000————————————————————————————————————————————————————————

This initiative recognises a sponsorship arrangement between BHP Billiton Olympic Dam Corporation Pty Ltd pursuant to the Olympic Dam Indenture Variation Deed, and the Art Gallery



of South Australia, for $17.5 million to present the TARNANTHI Festival of Aboriginal and Torres Strait Islander Contemporary Arts annually over the period 2016–17 to 2021–22.

Treaties with Aboriginal South Australians and nations Budget implications ($000)

———————————————————————————————————————————————————————— 2016–17 2017–18 2018–19 2019–20 MYBR Estimate Estimate Estimate ———————————————————————————————————————————————————————— Operating expenses -848 -944 -957 -967 ———————————————————————————————————————————————————————— Full time equivalents 2 2 2 2 ————————————————————————————————————————————————————————

This initiative provides $4.4 million over five years for the commencement of consultations with the Aboriginal community on the development of a treaty in South Australia, following the recent implementation of the Aboriginal Regional Authority Policy.

This program includes the appointment of an Independent Commissioner for Treaty as well as resources for three years to support the consultation and implementation of a Treaty Process. It provides for governance training and support for Aboriginal nations seeking to enter into treaty negotiation and support for existing and newly recognised Aboriginal Regional Authorities to participate in treaty negotiation. Support will also be provided to allow for further authorities to be recognised.




Overview

By agreement between the Commonwealth Government and the states and territories, each jurisdiction presents financial information on a Uniform Presentation Framework (UPF) basis in their budget papers, mid-year budget update and budget outcome reporting. The tables in this appendix present information for South Australia on the UPF basis.

The primary objective of the UPF is to ensure that Commonwealth, state and territory governments provide a common ‘core’ of financial information in their budget-related papers to enable direct comparisons of each government’s budget and financial results.

In October 2007, the Australian Accounting Standards Board (AASB) issued a new standard AASB 1049 Whole of Government and General Government Sector Financial Reporting applicable from 1 July 2008. Consistent with the disclosure requirements of AASB 1049, the Australian Loan Council approved a revised UPF in March 2008. The tables in this appendix reflect the requirements of the 2008 revision to the UPF.

The Australian System of Government Finance Statistics: Concepts, Sources and Methods, published by the Australian Bureau of Statistics (ABS), requires that provisions for doubtful debts be excluded from the balance sheet. Consistent with the Commonwealth Government’s methodology, South Australia has not adopted this treatment in the UPF reports because excluding such provisions would overstate the value of assets in the balance sheet (and would therefore be inconsistent with the market valuation principle).


UNIFORM PRESENTATION FRAMEWORK TABLES

Table B.1: General government sector operating statement ($million)

2016–17Budget

2016–17MYBR

2017–18Estimate

2018–19Estimate

2019–20Estimate

Revenue Taxation revenue 4 517 4 459 4 595 4 741 4 946Grants 10 246 10 220 10 953 10 784 10 861Sales of goods and services 2 487 2 464 2 562 2 634 2 708Interest income 24 24 25 26 28Dividend and income tax equivalent income 326 533 279 278 293Other 664 642 661 702 717

Total revenue 18 263 18 342 19 075 19 164 19 553

lessExpensesEmployee expenses 7 899 7 946 8 167 8 251 8 390Superannuation expenses

Superannuation interest cost 392 345 355 344 332Other superannuation expenses 859 865 881 891 907

Depreciation and amortisation 963 916 1 022 1 064 1 067Interest expenses 346 226 360 293 301Other property expenses — — — — —Other operating expenses 4 613 4 681 4 879 5 012 5 181Grants 2 937 3 065 3 028 2 885 2 919

Total expenses 18 009 18 043 18 693 18 741 19 097equalsNet operating balance 254 300 382 424 456

plusOther economic flows 1 124 1 746 741 730 721equals

Comprehensive result – total change in net worth 1 378 2 046 1 124 1 153 1 177

Net operating balance 254 300 382 424 456

lessNet acquisition of non-financial assetsPurchases of non-financial assets 4 630 4 599 2 217 1 500 1 500less Sales of non-financial assets 976 938 397 41 39less Depreciation 963 916 1 022 1 064 1 067plus Change in inventories — — — — —plus Other movements in non-financial assets — — — — —

equals Total net acquisition of non-financial assets 2 690 2 745 798 395 393equalsNet lending / borrowing -2 436 -2 445 -416 29 63




Table B.2: Public non-financial corporations (public trading enterprises) sector operating statement ($million)

2016-17Budget

2016–17MYBR

2017–18Estimate

2018–19Estimate

2019–20Estimate

Revenue Taxation revenue — — — — —Grants 420 395 493 508 518Sales of goods and services 1 688 1 672 1 733 1 758 1 783Interest income 7 9 6 7 7Dividend and income tax equivalent income 4 4 4 6 1Other 150 166 145 134 135

Total revenue 2 269 2 246 2 381 2 413 2 443

lessExpensesEmployee expenses 197 199 201 203 207Superannuation expenses

Superannuation interest cost — — — — —Other superannuation expenses 26 26 26 26 27

Depreciation and amortisation 469 447 465 484 495Interest expenses 297 292 283 280 278Other property expenses 186 202 255 254 268Other operating expenses 1 232 1 223 1 198 1 202 1 203Grants 32 48 36 40 27

Total expenses 2 440 2 436 2 463 2 489 2 504equalsNet operating balance -170 -190 -82 -76 -61

plusOther economic flows 738 658 591 589 600equals

Comprehensive result – total change in net worth 568 468 508 512 539

Net operating balance -170 -190 -82 -76 -61

lessNet acquisition of non-financial assetsPurchases of non-financial assets 1 298 1 246 664 563 467less Sales of non-financial assets 201 191 156 150 101less Depreciation 469 447 465 484 495plus Change in inventories 30 19 -33 -34 -19plus Other movements in non-financial assets — — — — —

equals Total net acquisition of non-financial assets 659 627 10 -104 -148equalsNet lending / borrowing -829 -816 -92 27 87




Table B.3: Non-financial public sector operating statement ($million)

2016-17Budget

2016–17MYBR

2017–18Estimate

2018–19Estimate

2019–20Estimate

Revenue Taxation revenue 4 168 4 118 4 242 4 380 4 575Grants 10 246 10 216 10 952 10 783 10 862Sales of goods and services 3 952 3 922 4 075 4 169 4 264Interest income 25 27 26 27 30Dividend and income tax equivalent income 147 338 31 33 29Other 810 804 795 830 847

Total revenue 19 349 19 425 20 120 20 221 20 607

lessExpensesEmployee expenses 8 096 8 145 8 368 8 454 8 597Superannuation expenses

Superannuation interest cost 392 345 355 344 332Other superannuation expenses 884 891 906 917 933

Depreciation and amortisation 1 432 1 363 1 487 1 548 1 563Interest expenses 638 512 637 568 573Other property expenses — — — — —Other operating expenses 5 274 5 347 5 503 5 630 5 785Grants 2 549 2 713 2 564 2 414 2 429

Total expenses 19 265 19 315 19 821 19 874 20 212equalsNet operating balance 84 110 300 347 395

plusOther economic flows 1 295 1 936 824 806 782equals

Comprehensive result – total change in net worth 1 378 2 046 1 124 1 153 1 177

Net operating balance 84 110 300 347 395

lessNet acquisition of non-financial assetsPurchases of non-financial assets 5 275 5 255 2 874 2 061 1 967less Sales of non-financial assets 524 539 546 189 140less Depreciation 1 432 1 363 1 487 1 548 1 563plus Change in inventories 30 19 -33 -34 -19plus Other movements in non-financial assets — — — — —

equals Total net acquisition of non-financial assets 3 349 3 372 808 291 246equalsNet lending / borrowing -3 265 -3 262 -508 56 150




Table B.4: General government sector balance sheet ($million)

2016-17Budget

2016–17MYBR

2017–18Estimate

2018–19Estimate

2019–20Estimate

AssetsFinancial assets

Cash and deposits 1 110 1 060 1 074 1 088 1 102Advances paid 70 80 78 75 70Investments, loans and placements 295 304 316 328 341Receivables 589 627 613 636 617Equity

Investments in other public sector entities 20 599 19 721 20 148 20 654 21 178Investments — other 857 883 883 883 883

Other financial assets 54 85 91 90 90

Total financial assets 23 574 22 760 23 203 23 754 24 280

Non-financial assetsLand and other fixed assets 41 757 42 581 43 427 43 852 44 290Other non-financial assets 1 9 9 9 9

Total non-financial assets 41 758 42 590 43 436 43 861 44 299

Total assets 65 332 65 350 66 639 67 616 68 579

LiabilitiesDeposits held 344 363 376 415 451Advances received 227 232 224 216 207Borrowing 7 151 7 039 7 406 7 436 7 425Superannuation 12 178 12 894 12 514 12 099 11 648Other employee benefits 2 735 2 880 3 013 3 148 3 311Payables 1 104 1 094 1 100 1 105 1 113Other liabilities 1 020 1 062 1 095 1 133 1 182

Total liabilities 24 759 25 563 25 728 25 552 25 338

Net Worth 40 573 39 787 40 910 42 063 43 241

Net financial worth (a) -1 184 -2 804 -2 525 -1 798 -1 058Net financial liabilities 21 783 22 524 22 673 22 452 22 236Net debt (b) 6 246 6 189 6 538 6 576 6 571

Note: Totals may not add due to rounding.(a) Net financial worth equals total financial assets minus total liabilities.(b) Net debt equals the sum of deposits held, advances received and borrowing, minus the sum of cash and deposits,

advances paid, and investments, loans and placements.



Table B.5: Public non-financial corporations (public trading enterprises) sector balance sheet ($million)

2016–17Budget

2016–17MYBR

2017–18Estimate

2018–19Estimate

2019–20Estimate


Cash and deposits 278 371 373 428 506Advances paid — — — — —Investments, loans and placements 47 49 49 50 51Receivables 260 280 282 287 292Equity

Investments in other public sector entities — — — — —Investments — other 18 14 14 14 14


Total financial assets 610 720 725 785 869



Total assets 27 411 27 220 27 814 28 360 28 897

LiabilitiesDeposits held 1 40 40 40 41Advances received 33 33 33 33 33Borrowing 7 816 7 786 7 873 7 913 7 919Superannuation — — — — —Other employee benefits 73 74 75 75 76Payables 261 293 297 300 303Other liabilities 50 129 124 112 100


Net Worth 19 177 18 865 19 373 19 885 20 425






Table B.6: Non-financial public sector balance sheet ($million)

2016–17Budget

2016–17MYBR

2017–18Estimate

2018–19Estimate

2019–20Estimate


Cash and deposits 1 247 1 255 1 258 1 288 1 343Advances paid 37 47 45 42 37Investments, loans and placements 343 353 365 379 392Receivables 839 878 876 916 918Equity

Investments in other public sector entities 1 422 856 775 769 753Investments — other 875 897 897 897 897


Total financial assets 4 821 4 377 4 313 4 387 4 435



Total assets 73 379 73 464 74 835 75 820 76 760

LiabilitiesDeposits held 204 226 226 227 227Advances received 227 232 224 216 207Borrowing 14 966 14 825 15 279 15 350 15 345Superannuation 12 178 12 894 12 514 12 099 11 648Other employee benefits 2 809 2 954 3 088 3 223 3 388Payables 1 324 1 329 1 337 1 345 1 356Other liabilities 1 098 1 218 1 256 1 296 1 349


Net Worth 40 573 39 787 40 910 42 063 43 241






Table B.7: General government sector cash flow statement ($million)

2016–17Budget

2016–17MYBR

2017–18Estimate

2018–19Estimate

2019–20Estimate

Cash receipts from operating activitiesTaxes received 4 515 4 676 4 593 4 738 4 943Receipts from sales of goods and services 2 465 2 447 2 546 2 617 2 691Grants and subsidies received 10 246 10 220 10 953 10 784 10 861Interest receipts 24 24 25 26 28Dividends and income tax equivalents 347 570 289 293 308Other receipts 667 663 659 685 736

Total operating receipts 18 264 18 600 19 064 19 142 19 567

Cash payments for operating activitiesPayments for employees -9 271 -9 342 -9 499 -9 603 -9 745Payments for goods and services -4 339 -4 405 -4 559 -4 729 -4 861Grants and subsidies paid -3 069 -3 187 -3 137 -3 023 -3 061Interest paid -346 -226 -360 -293 -301Other payments -114 -112 -161 -119 -122

Total operating payments -17 140 -17 272 -17 717 -17 766 -18 090

Net cash flows from operating activities 1 123 1 328 1 347 1 376 1 477

Net cash flows from investmentsin non-financial assetsSales of non-financial assets 975 927 372 41 39Purchases of non-financial assets (a) -1 809 -1 778 -2 204 -1 497 -1 499

Net cash flows from investment in non-financialassets -833 -852 -1 832 -1 456 -1 460

Net cash flows from investments in financialassets for policy purposes (b) 342 528 150 59 39

Net cash flows from investments in financialassets for liquidity purposes -4 -4 -12 -12 -12

Net cash flows from financing activitiesAdvances received (net) -7 -2 -7 -8 -10Borrowing (net) -507 -894 373 36 -32Deposits received (net) -88 -115 13 39 36Dividends paid — — — — —Other financing (net) — 1 — 1 1

Net cash flows from financing activities -601 -1 010 379 68 -4

Net increase/(decrease) in cash held 27 -10 32 35 40

Net cash flows from operating activities 1 123 1 328 1 347 1 376 1 477Net cash flows from investmentsin non-financial assets -833 -852 -1 832 -1 456 -1 460

Dividends paid — — — — —

Cash surplus / (deficit) 290 476 -485 -80 17

Note: Totals may not add due to rounding.(a) The ABS disaggregates this item into new and secondhand non-financial assets.(b) Includes equity acquisitions and disposals.



Table B.8: Public non-financial corporations (public trading enterprises) sectorcash flow statement ($million)

2016–17Budget

2016–17MYBR

2017–18Estimate

2018–19Estimate

2019–20Estimate

Cash receipts from operating activitiesTaxes received — — — — —Receipts from sales of goods and services 1 650 1 630 1 686 1 710 1 738Grants and subsidies received 420 395 493 508 518Interest receipts 7 9 6 7 7Dividends and income tax equivalents 4 4 4 6 1Other receipts 154 157 148 144 140


Cash payments for operating activitiesPayments for employees -235 -236 -239 -242 -247Payments for goods and services -875 -863 -774 -768 -775Grants and subsidies paid -32 -48 -36 -38 -27Interest paid -299 -293 -284 -281 -279Other payments -439 -609 -450 -465 -480


Net cash flows from operating activities 356 145 555 580 598

Net cash flows from investmentsin non-financial assetsSales of non-financial assets 201 191 156 148 101Purchases of non-financial assets (a) -1 272 -1 217 -633 -539 -443

Net cash flows from investment in non-financialassets -1 071 -1 026 -477 -392 -343

Net cash flows from investments in financialassets for policy purposes (b) — — — — —

Net cash flows from investments in financialassets for liquidity purposes — — -1 -1 -1

Net cash flows from financing activitiesAdvances received (net) 159 99 12 — —Borrowing (net) 529 583 87 41 6Deposits received (net) — — — — —Dividends paid -128 -140 -176 -173 -183Other financing (net) — — — — —

Net cash flows from financing activities 560 543 -76 -132 -176

Net increase/(decrease) in cash held -155 -338 2 55 78

Net cash flows from operating activities 356 145 555 580 598Net cash flows from investmentsin non-financial assets -1 071 -1 026 -477 -392 -343

Dividends paid -128 -140 -176 -173 -183

Cash surplus / (deficit) -843 -1 020 -97 15 72




Table B.9: Non-financial public sector cash flow statement ($million)

2016–17Budget

2016–17MYBR

2017–18Estimate

2018–19Estimate

2019–20Estimate

Cash receipts from operating activitiesTaxes received 4 166 4 187 4 239 4 377 4 572Receipts from sales of goods and services 3 917 3 876 4 034 4 127 4 225Grants and subsidies received 10 246 10 216 10 952 10 783 10 862Interest receipts 25 27 26 27 30Dividends and income tax equivalents 147 335 31 33 29Other receipts 796 803 781 803 850


Cash payments for operating activitiesPayments for employees -9 493 -9 566 -9 725 -9 831 -9 978Payments for goods and services -5 022 -5 082 -5 141 -5 304 -5 439Grants and subsidies paid -2 681 -2 836 -2 680 -2 551 -2 571Interest paid -639 -513 -639 -569 -574Other payments -109 -115 -153 -112 -114


Net cash flows from operating activities 1 352 1 333 1 727 1 783 1 892

Net cash flows from investmentsin non-financial assetsSales of non-financial assets 523 528 528 189 140Purchases of non-financial assets (a) -2 428 -2 405 -2 837 -2 037 -1 942

Net cash flows from investment in non-financialassets -1 905 -1 877 -2 309 -1 848 -1 802

Net cash flows from investments in financialassets for policy purposes (b) 502 627 162 59 39

Net cash flows from investments in financialassets for liquidity purposes -5 -5 -13 -13 -13

Net cash flows from financing activitiesAdvances received (net) -7 -2 -7 -8 -10Borrowing (net) 22 -311 460 77 -26Deposits received (net) — — — — —Dividends paid — — — — —Other financing (net) — 1 — 1 1

Net cash flows from financing activities 16 -312 454 71 -34

Net increase/(decrease) in cash held -41 -234 21 51 82

Net cash flows from operating activities 1 352 1 333 1 727 1 783 1 892Net cash flows from investmentsin non-financial assets -1 905 -1 877 -2 309 -1 848 -1 802

Dividends paid — — — — —

Cash surplus / (deficit) -553 -544 -582 -65 89




Table B.10: General government sector derivation of ABS GFS cash surplus/deficit ($million)

2016-17Budget

2016–17MYBR

2017–18Estimate

2018–19Estimate

2019–20Estimate

Cash surplus / (deficit) 290 476 -485 -80 17

Acquisitions under finance leasesand similar arrangements (a) -2,820 -2,820 — — —

ABS GFS Surplus (+)/deficit (-)including finance leases and similar arrangements -2,530 -2,344 -485 -80 17

Table B.11: Public non-financial corporations (public trading enterprises) sectorderivation of ABS GFS cash surplus/deficit ($million)

Cash surplus / (deficit) -843 -1,020 -97 15 72

Acquisitions under finance leasesand similar arrangements (a) — — — — —

ABS GFS Surplus (+)/deficit (-)including finance leases and similar arrangements -843 -1,020 -97 15 72

Table B.12: Non-financial public sector derivation of ABS cash surplus/deficit ($million)

Cash surplus / (deficit) -553 -544 -582 -65 89

Acquisitions under finance leasesand similar arrangements (a) -2,820 -2,820 — — —

ABS GFS Surplus (+)/deficit (-)including finance leases and similar arrangements -3,373 -3,364 -582 -65 89

Note: Totals may not add due to rounding.(a) Finance leases are shown with a negative sign as they are deducted in compiling the ABS GFS cash surplus/deficit.



Table B.13: General government sector taxes ($million) (a)

2016–17Budget

2016–17MYBR

2017–18Estimate

2018–19Estimate

2019–20Estimate

Taxes on employers' payroll and labour force 1 159 1 155 1 201 1 251 1 318

Taxes on propertyLand taxes 593 589 606 622 640Stamp duties on financial and capital transactions 1 041 972 1 006 1 030 1 119Financial institutions' transaction taxes — — — — —Other 269 287 284 292 279

Total 1 902 1 848 1 896 1 944 2 038

Taxes on the provision of goods and servicesExcises and levies — — — — —Taxes on gambling 389 383 401 411 417Taxes on insurance 443 449 459 477 497

Total 832 832 859 888 914

Taxes on use of goods and performance of activitiesMotor vehicle taxes 625 624 640 658 676Other — — — — —

Total 625 624 640 658 676

Total GFS taxation revenue 4 517 4 459 4 595 4 741 4 946

Note: Totals may not add due to rounding(a) Excludes taxes paid by general government entities



Table B.14(a): General government sector grant revenue ($million)

2016–17Budget

2016–17MYBR

2017–18Estimate

2018–19Estimate

2019–20Estimate

Current grant revenueCurrent grants from the Commonwealth

General purpose grants 6 101 6 085 6 495 6 592 6 729National partnership grants 385 404 340 407 226National partnership grants for on-passing 162 163 167 168 170Specific purpose grants 1 893 1 894 1 998 1 991 2 079Specific purpose grants for on-passing 841 841 874 908 944

Total current grants from the Commonwealth 9 382 9 388 9 873 10 066 10 148

Other contributions and grants 124 128 128 124 121

Total current grant revenue 9 506 9 516 10 001 10 190 10 269

Capital grant revenueCapital grants from the Commonwealth

General purpose grants — — — — —National partnership grants 625 589 844 488 486Specific purpose grants 95 95 95 96 97Specific purpose grants for on-passing — — — — —Other capital grants 15 13 8 5 5

Total capital grants from the Commonwealth 735 697 947 589 587

Other contributions and grants 5 7 5 5 5

Total capital grant revenue 740 704 952 594 592

Total grant revenue 10 246 10 220 10 953 10 784 10 861

Table B.14(b): General government sector grant expense ($million)

2016–17Budget

2016–17MYBR

2017–18Estimate

2018–19Estimate

2019–20Estimate

Current grant expenseState/territory government 2 3 2 2 2Local government 55 60 53 55 57Local government on-passing 159 158 162 163 165Private and not-for-profit sector 1 175 1 293 1 139 954 974Private and not-for-profit sector on-passing 845 846 879 913 949Grants to other sectors of government 422 411 509 526 535Other 215 219 221 236 201

Total current grant expense 2 873 2 990 2 965 2 849 2 883

Captial grant expenseState/territory government — — — — —Local government 23 25 1 — —Local government on-passing — — — — —Private and not-for-profit sector 40 50 61 36 37Private and not-for-profit sector on-passing — — — — —Grants to other sectors of government — — — — —Other — — — — —

Total capital grant expense 64 75 63 36 37

Total grant expense 2 937 3 065 3 028 2 885 2 919Note: Totals may not add due to rounding.



Table B.15: General government sector dividend and income tax equivalent income ($million)

2016–17Budget

2016–17MYBR

2017–18Estimate

2018–19Estimate

2019–20Estimate

Dividend and Income tax eqivalent income from PNFC sector 184 199 252 251 265Dividend and Income tax eqivalent income from PFC sector 141 333 26 26 27Other dividend income 1 1 1 1 1

Total dividend and income tax equivalent income 326 533 279 278 293

Note: Totals may not add due to rounding



Table B.16: Movement in general government net worth ($million)

2016–17 Budget

2016–17 MYBR

2017–18 Estimate

2018–19 Estimate

2019–20 Estimate

Net worth at beginning of year 39 195 37 741 39 787 40 910 42 063

Change in net worth from operating transactions: Net operating balance 254 300 382 424 456

Change in net worth from other economic flows: Movement in net assets of PFCs(a) 571 580 79 50 18 Movement in net assets of PNFCs(a) 409 369 496 512 539 Revaluation of unfunded superannuation liability 239 1 022 267 272 276 Revaluation of long service leave liability - 92 - 92 - 94 - 96 - 98 Revaluation of annual leave liability - 15 - 15 - 15 - 15 - 16 Revaluation of workers compensation liability - 16 - 16 - 16 - 16 - 17 Other revaluation adjustments 29 - 102 25 23 17

Total other economic flows 1 124 1 746 741 730 721 Net worth at year end 40 573 39 787 40 910 42 063 43 241


(a) Net equity injections from, and the return of equity to, the general government sector.

Table B.17: Loan Council Allocation 2016−17(a) ($million)

2016–17 Budget

2016–17 MYBR

General government sector cash deficit/surplus -290 -476 PNFC sector cash deficit/surplus 843 1 020

Total non-financial public sector cash deficit/(surplus)(b) 553 544

Acquisitions under finance leases and similar arrangements 2 820 2 820

ABS Government Finance Statistics cash deficit/(surplus) 3 373 3 364

Less: Net cash flows from investments in financial assets for policy purposes 502 627

Adjusted total non-financial public sector cash deficit/(surplus) 2 871 2 737

Memorandum items(c) Operating leases(d) -110 -111 Recourse asset sales — —

0 Superannuation(e) -267 -222 Local government 29 49 Home finance schemes 15 71

Total memorandum items -332 -213

LCA deficit/(surplus)(f)(g) 2 539 2 524


(a) For the purposes of this table a surplus is represented as a negative, while a deficit is a positive.

(b) The sum of the general government and PNFC sector may not equal the non-financial public sector deficit due to intersectoral transfers, which are netted out in the calculation of the total figure. These figures exclude statutory marketing authorities.

(c) Excludes universities.

(d) Increase/decrease in the net present value (NPV) of operating leases with an NPV of $5 million or greater.

(e) Includes both ‘payments in excess of emerging costs of superannuation’ and ‘interest earnings on employer balances’.

(f) The 2 per cent of total revenue tolerance limit around South Australia’s 2016–17 LCA is $384 million.

(g) South Australia does not have any proposed infrastructure projects with private sector involvement that meets the recognition criteria for 2016–17.



Table B.18: General Government sector expenses by function ($million)(a)(b)

2016–17 Budget

2016–17 MYBR

General public services 408 407 Government superannuation benefits — — Other general public services 408 407

Defence(c) — —

Public order and safety 1 752 1 753 Police and fire protection services 1 003 989 Law courts and legal services 326 335 Prisons and corrective services 335 332 Other public order and safety 89 97

Education 4 364 4 371 Primary and secondary education 3 532 3 549 Tertiary education 556 545 Pre-school education and education not definable by level 243 244 Transportation of students 28 28 Education n.e.c. 5 5

Health 5 618 5 624 Acute care institutions 4 830 4 839 Mental health institutions n.a. n.a. Nursing homes for the aged n.a. n.a. Community health services 464 454 Public health services 144 143 Pharmaceuticals, medical aids and appliances 17 17 Health research 5 19 Health administration n.e.c. 157 152

Social security and welfare 1 437 1 479 Social security 117 110 Welfare services 1 302 1 348 Social security and welfare services n.e.c. 18 21

Housing and community amenities 1 275 1 277 Housing and community development 508 480 Water supply 249 252 Sanitation and protection of the environment 515 541 Other community amenities 3 4

Recreation and culture 421 430 Recreation facilities and services 202 183 Cultural facilities and services 198 224 Broadcasting and film production 7 7



Table B.18: General government sector expenses by function ($million)(a)(b) (continued)

2016–17 Budget

2016–17 MYBR

Fuel and energy 74 115 Fuel affairs and services 17 41 Electricity and other energy 38 56 Fuel and energy n.e.c. 19 19

Agriculture, forestry, fishing and hunting 213 229 Agriculture 156 164 Forestry, fishing and hunting 57 65

Mining and mineral resources other than fuels; 73 74 manufacturing; and construction Mining and mineral resources other than fuels 46 46 Manufacturing — — Construction 26 28

Transport and communications 1 219 1 241 Road transport 513 541 Water transport 15 16 Rail transport 39 38 Air transport 17 15 Pipelines n.a. n.a. Other transport 532 527 Communications 104 105

Other economic affairs 390 426 Storage, saleyards and markets n.a. n.a. Tourism and area promotion 90 125 Labour and employment affairs 53 51 Other economic affairs 247 250

Other purposes 766 616 Public debt transactions 346 226 General purpose inter-government transactions 13 21 Natural disaster relief 9 19 Nominal superannuation interest expense 392 345 Other purposes n.e.c. 5 5 Total GFS expenses 18 009 18 043


(a) Expenses by function data is derived from information submitted by government departments and agencies. The processes for deriving this data are subject to ongoing refinements. Consequently the data may be subject to future revisions.

(b) Some functional classifications are not readily distinguishable at agency level. Those instances are denoted as ‘not available’ (n.a.).

(c) The ABS defines ‘defence’ as expenditure on military and civil defence affairs, foreign military aid and defence research. The expenditure of Defence SA is included in ‘other economic affairs’.



Table B.19: General government sector capital expenditure by function ($million)(a)

2016–17 Budget

2016–17 MYBR

General public services 14 24 Defence(b) — — Public order and safety 110 157 Education 85 138 Health 3 154 3 005 Social security and welfare 15 15 Housing and community amenities 83 59 Recreation and culture 89 78 Fuel and energy — 2 Agriculture, forestry, fishing and hunting 7 14 Mining and mineral resources other than fuels; manufacturing; and construction 6 13 Transport and communications 1 057 1 084 Other economic affairs 10 10 Other purposes — — Total capital expenditure 4 630 4 599


(a) Expenses by function data is derived from information by government departments and agencies. The processes for deriving this data are subject to ongoing refinements. Consequently the data may be subject to future revisions.

(b) The ABS defines ‘defence’ as expenditure on military and civil defence affairs, foreign military aid and defence research. The expenditure of Defence SA is included in ‘other economic affairs’.




The following tables provide historical data on key fiscal aggregates. Data provided (excluding the unfunded superannuation liability) is sourced for 1998−99 from Australian Bureau of Statistics Government Finance Statistics 2007−08 (catalogue number 5512.0) and for 1999–2000 to 2015–16 from budget outcome publications for South Australia.

Real-growth calculations using Gross State Product (GSP) and Consumer Price Index (CPI) data up to 2015−16 is sourced from the latest Australian Bureau of Statistics (ABS) publications. Department of the Premier and Cabinet forecasts are used for the forward estimates.

As historical data in this time series has not been back-cast to reflect classification and accounting changes, care must be taken in interpreting the data.

General government sector Table C.1: General government key operating statement aggregates

Revenue Expenses

Net operating

balance

Net acquisition of non-

financial assets

Net lending

$m % real

growth % GSP $m % real

growth % GSP $m $m $m

1998–99 7 290 17.0 7 505 17.5 - 215 19 - 233 1999–2000 7 644 2.3 16.9 7 974 3.6 17.6 - 330 140 - 471 2000–01 8 108 3.0 16.8 8 406 2.4 17.4 - 297 102 - 399 2001–02 8 538 2.1 16.3 8 713 0.5 16.6 - 174 - 50 - 124 2002–03 9 346 5.2 16.8 8 898 -1.8 16.0 448 34 414 2003–04 9 955 3.4 16.8 9 570 4.4 16.2 385 - 38 424 2004–05 10 592 3.9 17.2 10 368 5.8 16.8 224 105 119 2005–06 11 242 2.9 17.2 11 040 3.3 16.9 202 119 83 2006–07 11 757 1.9 16.7 11 547 1.9 16.4 209 139 71 2007–08 12 879 6.1 16.8 12 414 4.1 16.2 464 242 222 2008–09 13 531 1.9 17.0 13 764 7.5 17.2 - 233 639 - 872 2009–10(a) 15 534 12.3 18.6 15 347 9.1 18.4 187 1 279 -1 092 2010–11(a) 15 017 -6.3 16.8 15 069 -4.9 16.8 - 53 1 370 -1 422 2011–12 15 905 3.2 17.4 16 164 4.5 17.7 - 258 839 -1 098 2012–13 15 333 -5.5 16.3 16 282 -1.3 17.3 - 948 55 -1 003 2013–14(b) 15 343 -2.4 15.8 16 415 -1.7 16.9 -1 071 661 -1 733 2014–15 16 549 6.2 16.7 16 738 0.4 16.9 - 189 - 78 - 111 2015–16 17 362 4.0 17.2 17 062 1.1 16.9 300 204 96 2016–17 18 342 4.1 17.8 18 043 4.2 17.5 300 2 745 -2 445 2017–18 19 075 2.0 18.1 18 693 1.6 17.7 382 798 - 416 2018–19 19 164 -1.5 17.8 18 741 -1.7 17.4 424 395 29 2019–20 19 553 -0.5 17.7 19 097 -0.6 17.3 456 393 63

Note: Totals may not add due to rounding

(a) In 2009–10 and 2010−11 revenue, expenses and net acquisition of non-financial assets are impacted by the Commonwealth Government’s Nation Building ― Economic Stimulus Plan.

(b) There is a structural break in 2013–14 in the presentation of interest income and interest expense. Interest income earned on cash and deposits is offset with interest expense on the borrowings the Treasurer has with the South Australian Government Financing Authority (SAFA). This results in a reduction to interest income and interest expense accordingly.


Table C.2: General government key balance sheet aggregates ($million)

As at 30 June

Net debt (a) (b) Unfunded

superannuation $m


$m

Net financial worth

$m Net worth

$m $m % of

revenue % of GSP

1988 859 1989 694 1990 854 1991 1 817 1992 4 610 1993 7 884 1994 7 113 1995 5 815 1996 5 512 1997 4 983 1998 4 762 1999 4 779 65.6 11.1 3 909 9 733 1 894 10 624 2000 1 920 25.1 4.2 3 543 6 911 2 986 12 445 2001 1 246 15.4 2.6 3 249 6 093 4 091 14 816 2002 1 303 15.3 2.5 3 998 6 907 3 559 14 721 2003 666 7.1 1.2 4 445 6 974 3 500 15 288 2004 224 2.3 0.4 5 668 7 858 3 842 15 760 2005 144 1.4 0.2 7 227 9 393 3 853 16 359 2006 - 119 -1.1 -0.2 6 146 8 171 5 846 19 703 2007(c) - 24 -0.2 0.0 5 075 7 254 8 110 22 128 2008(d)(e)(f) - 276 -2.1 -0.4 6 468 8 078 7 580 23 741 2009 475 3.5 0.6 8 939 11 562 5 551 24 146 2010 1 402 9.0 1.7 9 478 13 182 6 551 36 231 2011 2 930 19.5 3.3 9 096 14 313 7 299 40 958 2012(g) 4 165 26.2 4.6 13 523 20 332 1 413 37 199 2013 5 227 34.1 5.5 11 085 19 079 1 742 39 363 2014(h) 7 071 46.1 7.3 10 877 20 761 1 056 39 654 2015(i) 3 929 23.7 4.0 11 358 18 296 1 374 40 121 2016(j) 4 393 25.3 4.3 14 029 21 372 -2 049 37 741 2017 6 189 33.7 6.0 12 894 22 524 -2 804 39 787 2018 6 538 34.3 6.2 12 514 22 673 -2 525 40 910 2019 6 576 34.3 6.1 12 099 22 452 -1 798 42 063 2020 6 571 33.6 6.0 11 648 22 236 -1 058 43 241

Note: Totals may not add due to rounding. (a) Net debt data for the years before 1999 are sourced from ABS, Government Financial Estimates 2003–04 (catalogue number 5501). (b) There is a structural break in the methodology used to calculate superannuation liabilities between June 2003 and June 2004. This

accounting change, which involved the adoption of the Commonwealth Government bond rate for valuation purposes in line with AASB 119, Employee Benefits, resulted in a significant increase in superannuation liabilities.

(c) There is a structural break in 2007 reflecting the amalgamation of SAFA and SAICORP on 1 July 2006. The transfer of SAICORP’s assets and liabilities from the general government sector to the public financial corporations sector resulted in an increase in general government net debt of $99 million at 1 July 2006 and an increase in net financial liabilities of $90 million at 1 July 2006.

(d) There is a structural break in 2008 reflecting the transfer of rail assets from TransAdelaide to the general government sector. This resulted in an increase in net debt and net financial liabilities of $66 million in 2007–08, and a reduction in net financial worth of $591 million, with no impact on net worth.

(e) There is a structural break in 2008 reflecting the transfer of assets from the Adelaide Festival Centre Trust to the general government sector. This resulted in an increase in net debt and net financial liabilities of $28 million in 2007–08, and a reduction in net financial worth of $76 million, with no impact on net worth.

(f) There is a structural break in 2008 reflecting the first time recognition on the general government balance sheet of South Australia’s share of the net assets of the Murray-Darling Basin Commission. This had no impact on net debt, however resulted in a reduction in net financial liabilities of $615 million in 2007–08, and an increases in net financial worth and net worth of $615 million.

(g) There is a structural break in 2012 reflecting the transfer of the Rail Commissioner to the general government sector. This resulted in a reduction in net debt of $6 million, an increase in net financial liabilities of $37 million, and a reduction in net financial worth of $144 million in 2011–12, with no impact on net worth.

(h) There is a structural break in 2014 reflecting the transfer of the Lotteries Commission of South Australia (SA Lotteries) to the general government sector. This resulted in a reduction in net debt of $46 million, a reduction in net financial liabilities of $1 million, with no impact on net worth.

(i) There is a structural break in 2015 reflecting the government’s decision to reduce its equity in SA Water. This resulted in a once-off $2.7 billion return of capital to the Consolidated Account in 2014–15. The restructure resulted in a reduction in distributions paid to government partially offset by increased guarantee fees payable and lower borrowing costs.

(j) There is a structural break in 2016 reflecting the transfer of the South Australian Motor Sport Board to the general government sector. This resulted in an increase in net financial liabilities of $3 million, and a reduction in net financial worth of $12 million in 2015–16, with no impact on net worth.



Table C.3: General government sector receipts, payments and surplus ($million)(a)

Receipts Payments ABS Cash Surplus 1979–80 1 891 1 671 220 1980–81 2 065 1 917 148 1981–82 2 210 2 122 87 1982–83 2 664 2 507 156 1983–84 2 988 2 734 255 1984–85 3 380 3 057 324 1985–86 3 634 3 161 474 1986–87 3 956 3 416 540 1987–88 4 307 3 858 449 1988–89 4 630 3 977 653 1989–90 4 973 4 370 603 1990–91 5 260 4 796 463 1991–92 5 387 5 396 -10 1992–93 5 967 5 456 512 1993–94 6 087 6 024 63 1994–95 6 155 6 220 -66 1995–96 6 405 6 164 241 1996–97 6 379 6 282 97 1997–98 6 988 6 724 264 1998–99 7 165 7 041 123 1999–2000 7 676 7 915 - 239 2000–01 8 278 8 387 -108 2001–02 8 698 8 748 -50 2002–03 9 522 8 864 658 2003–04 10 023 9 502 522 2004–05 11 252 11 059 193 2005–06 11 480 11 293 187 2006–07 12 090 12 116 - 26 2007–08 12 932 12 552 379 2008–09 13 579 14 299 - 721 2009–10 15 837 16 991 -1 154 2010–11 15 331 16 851 -1 520 2011–12 16 556 17 594 -1 038 2012–13 16 489 17 655 -1 166 2013–14 15 434 17 232 -1 797 2014–15 16 768 16 652 116 2015–16 17 144 17 357 - 213 2016–17 19 526 21 870 -2 344 2017–18 19 436 19 922 - 485 2018–19 19 183 19 263 - 80 2019–20 19 606 19 589 17


(a) There is a break in the series between 1998–99 and 1999–2000. Data for the years before 1999–2000 are sourced from the ABS and are consistent with ABS GFS reporting requirements on a cash basis. Capital receipts and payments, including payments associated with the provision of financial support for state owned financial institutions (which were treated by the ABS then as an ‘investment in financial assets for policy purposes’) are not included in the series before 1999–2000. After 1998–99, data is derived from an accrual ABS GFS reporting framework, with receipts proxied by receipts from operating activities and sales of non-financial assets, and payments proxied by payments for operating activities, purchases of non-financial assets and net acquisition of assets under finance leases and similar arrangements. Due to the associated methodological and data-source changes, time series data that encompass measures derived under both cash and accrual accounting should be used with caution.



Tabl

e C

.4: G

ener

al g

over

nmen

t sec

tor o

pera

ting

stat

emen

t ($m

illio

n)

2010

–11

2011

–12

2012

–13

2013

–14

2014

–15

2015

–16

2016

–17

2017

–18

2018

–19

2019

–20

Reve

nue

Taxa

tion

reve

nue

3 83

1 3

854

4 10

4 4

085

4 37

6 4

409

4 45

9 4

595

4 74

1 4

946

Gra

nts

8 18

5 8

668

7 66

9 7

804

8 35

0 8

997

10 2

20

10 9

53

10 7

84

10 8

61

Sale

s of

goo

ds a

nd s

ervi

ces

1 87

9 2

015

2 11

5 2

265

2 32

9 2

455

2 46

4 2

562

2 63

4 2

708

Inte

rest

inco

me(a

) 1

68

172

1

34

40

28

24

24

25

26

28

Div

iden

d an

d in

com

e ta

x eq

uiva

lent

inco

me

403

3

85

446

3

98

791

7

92

533

2

79

278

2

93

Oth

er

550

8

11

865

7

52

674

6

86

642

6

61

702

7

17

Tota

l rev

enue

15

017

15

905

15

333

15

343

16

549

17

362

18

342

19

075

19

164

19

553

less

Exp

ense

s Em

ploy

ee e

xpen

ses

6 40

0 6

770

7 10

5 7

353

7 49

3 7

721

7 94

6 8

167

8 25

1 8

390

Supe

rann

uatio

n ex

pens

es

Su

pera

nnua

tion

inte

rest

cos

t 4

27

407

3

14

468

4

38

402

3

45

355

3

44

332

Oth

er s

uper

annu

atio

n ex

pens

es

621

6

66

675

7

36

738

7

44

865

8

81

891

9

07

Dep

reci

atio

n an

d am

ortis

atio

n 6

70

718

7

62

812

8

53

890

9

16

1 02

2 1

064

1 06

7 In

tere

st e

xpen

ses(a

) 3

08

427

3

86

300

2

54

210

2

26

360

2

93

301

O

ther

ope

ratin

g ex

pens

es

3 82

4 3

993

4 31

3 4

169

4 17

3 4

398

4 68

1 4

879

5 01

2 5

181

Gra

nts

2 81

9 3

183

2 72

6 2

577

2 79

0 2

698

3 06

5 3

028

2 88

5 2

919

Tota

l exp

ense

s 15

069

16

164

16

282

16

415

16

738

17

062

18

043

18

693

18

741

19

097

equa

ls N

et o

pera

ting

bala

nce

- 53

- 258

- 9

48

-1 0

71

- 189

3

00

300

3

82

424

4

56

plus

Oth

er e

cono

mic

flow

s 2

905

-3 5

56

3 11

3 1

362

628

-2

621

1

746

741

7

30

721

equa

ls C

ompr

ehen

sive

resu

lt —

tota

l cha

nge

in n

et w

orth

2

852

-3 8

14

2 16

4 2

91

439

-2

321

2

046

1 12

4 1

153

1 17

7

Net o

pera

ting

bala

nce

- 53

- 258

- 9

48

-1 0

71

- 189

3

00

300

3

82

424

4

56

less

Net

acq

uisi

tion

of n

on-fi

nanc

ial a

sset

s Pu

rcha

ses

of n

on-fi

nanc

ial a

sset

s 2

122

1 87

6 2

008

1 59

0 9

37

1 16

2 4

599

2 21

7 1

500

1 50

0 le

ss S

ales

of n

on-fi

nanc

ial a

sset

s 8

2 3

22

1 19

7 1

17

166

6

6 9

38

397

4

1 3

9 le

ss D

epre

ciat

ion

670

7

18

762

8

12

853

8

90

916

1

022

1 06

4 1

067

plus

Cha

nge

in in

vent

orie

s —

3

7

1

4

- 3

—

—

—

—

pl

us O

ther

mov

emen

ts in

non

-fina

ncia

l ass

ets

—

—

—

—

—

—

—

—

—

—

equa

ls T

otal

net

acq

uisi

tion

of n

on-fi

nanc

ial a

sset

s 1

370

839

5

5 6

61

- 78

204

2

745

798

3

95

393

equa

ls N

et le

ndin

g / b

orro

win

g -1

422

-1

098

-1

003

-1

733

- 1

11

96

-2 4

45

- 416

2

9 6

3 N

ote:

Tot

als

may

not

add

due

to ro

undi

ng.

(a)

Ther

e is

a s

truct

ural

bre

ak in

201

3–14

in th

e pr

esen

tatio

n of

inte

rest

inco

me

and

inte

rest

exp

ense

. Int

eres

t inc

ome

earn

ed o

n ca

sh a

nd d

epos

its is

offs

et w

ith in

tere

st e

xpen

se o

n th

e bo

rrow

ings

the

Trea

sure

r has

with

SA

FA.

This

resu

lts in

a re

duct

ion

to in

tere

st in

com

e an

d in

tere

st e

xpen

se a

ccor

ding

ly.



Tabl

e C

.5: G

ener

al g

over

nmen

t sec

tor b

alan

ce s

heet

($m

illio

n)

As

at 3

0 Ju

ne

2011

20

12

2013

20

14

2015

20

16

2017

20

18

2019

20

20

Ass

ets

Fina

ncia

l ass

ets

Cas

h an

d de

posi

ts(a

) 3

675

916

1

113

1 10

4 1

110

1 08

8 1

060

1 07

4 1

088

1 10

2 Ad

vanc

es p

aid

642

5

50

176

6

6 5

7 5

7 8

0 7

8 7

5 7

0 In

vest

men

ts, l

oans

and

pla

cem

ents

1

89

200

2

26

247

2

71

292

3

04

316

3

28

341

R

ecei

vabl

es

575

5

39

730

6

71

610

8

96

627

6

13

636

6

17

Equi

ty

In

vest

men

ts in

oth

er p

ublic

sec

tor e

ntiti

es

21 6

12

21 7

45

20 8

21

21 8

16

19 6

69

19 3

22

19 7

21

20 1

48

20 6

54

21 1

78

In

vest

men

ts —

oth

er

743

8

36

831

8

36

865

8

90

883

8

83

883

8

83

Oth

er fi

nanc

ial a

sset

s 8

0 1

25

56

39

79

86

85

91

90

90

Tota

l fin

anci

al a

sset

s 27

516

24

912

23

954

24

779

22

661

22

632

22

760

23

203

23

754

24

280

Non

-fina

ncia

l ass

ets

Land

and

oth

er fi

xed

asse

ts

33 6

57

35 7

79

37 6

16

38 5

93

38 7

47

39 7

81

42 5

81

43 4

27

43 8

52

44 2

90

Oth

er n

on-fi

nanc

ial a

sset

s 2

6

5

5

1

9

9

9

9

9

To

tal n

on-fi

nanc

ial a

sset

s 33

658

35

785

37

621

38

599

38

748

39

790

42

590

43

436

43

861

44

299

To

tal a

sset

s 61

175

60

698

61

575

63

378

61

409

62

422

65

350

66

639

67

616

68

579

Liab

ilitie

s

Dep

osits

hel

d 3

54

397

3

92

356

3

77

478

3

63

376

4

15

451

Ad

vanc

es re

ceiv

ed

592

5

90

232

2

14

252

2

34

232

2

24

216

2

07

Borro

win

g(a)

6 49

1 4

843

6 11

8 7

918

4 73

7 5

119

7 03

9 7

406

7 43

6 7

425

Supe

rann

uatio

n 9

096

13 5

23

11 0

85

10 8

77

11 3

58

14 0

29

12 8

94

12 5

14

12 0

99

11 6

48

Oth

er e

mpl

oyee

ben

efits

2

022

2 40

8 2

457

2 45

2 2

622

2 82

9 2

880

3 01

3 3

148

3 31

1 Pa

yabl

es

810

8

98

1 01

9 9

36

1 08

9 1

089

1 09

4 1

100

1 10

5 1

113

Oth

er li

abilit

ies

853

8

40

908

9

70

852

9

04

1 06

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1 13

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182

Tota

l lia

bilit

ies

20 2

17

23 4

99

22 2

12

23 7

23

21 2

88

24 6

81

25 5

63

25 7

28

25 5

52

25 3

38

Net

wor

th

40 9

58

37 1

99

39 3

63

39 6

54

40 1

21

37 7

41

39 7

87

40 9

10

42 0

63

43 2

41

Net

fina

ncia

l wor

th(b

)(e)

7

299

1 41

3 1

742

1 05

6 1

374

-2 0

49

-2 8

04

-2 5

25

-1 7

98

-1 0

58

Net

fina

ncia

l lia

bilit

ies(b

)(c)

(e)

14 3

13

20 3

32

19 0

79

20 7

61

18 2

96

21 3

72

22 5

24

22 6

73

22 4

52

22 2

36

Net

deb

t(b)(

c)(d

) 2

930

4 16

5 5

227

7 07

1 3

929

4 39

3 6

189

6 53

8 6

576

6 57

1 N

ote:

Tot

als

may

not

add

due

to ro

undi

ng.

(a)

Ther

e is

a s

truct

ural

bre

ak in

201

2 re

flect

ing

that

cas

h an

d de

posi

ts h

eld

by th

e Tr

easu

rer a

re o

ffset

with

bor

row

ings

the

Trea

sure

r has

with

SAF

A. T

his

resu

lted

in a

redu

ctio

n in

cas

h an

d de

posi

ts, a

nd b

orro

win

gs o

f $3.

134

billi

on, w

ith n

o im

pact

on

both

net

wor

th a

nd n

et d

ebt.

(b)

Ther

e is

a s

truct

ural

bre

ak in

201

2 re

flect

ing

the

trans

fer o

f the

Rai

l Com

mis

sion

er to

the

gene

ral g

over

nmen

t sec

tor.

This

resu

lted

in a

redu

ctio

n in

net

deb

t of $

6 m

illio

n, a

n in

crea

se in

net

fina

ncia

l lia

bilit

ies

of $

37 m

illio

n, a

nd a

redu

ctio

n in

ne

t fin

anci

al w

orth

of $

144

mill

ion

in 2

011–

12, w

ith n

o im

pact

on

net w

orth

. (c

) Th

ere

is a

stru

ctur

al b

reak

in 2

014

refle

ctin

g th

e tra

nsfe

r of t

he L

otte

ries

Com

mis

sion

of S

outh

Aus

tralia

(SA

Lotte

ries)

to th

e ge

nera

l gov

ernm

ent s

ecto

r. Th

is re

sulte

d in

a re

duct

ion

in n

et d

ebt o

f $46

mill

ion,

a re

duct

ion

in n

et fi

nanc

ial l

iabi

litie

s of

$1

mill

ion

in 2

013–

14, w

ith n

o im

pact

on

net w

orth

. (d

) Th

ere

is a

stru

ctur

al b

reak

in 2

015

refle

ctin

g th

e go

vern

men

t’s d

ecis

ion

to re

duce

its

equi

ty in

SA

Wat

er. T

his

resu

lted

in a

onc

e-of

f $2.

7 bi

llion

retu

rn o

f cap

ital t

o th

e C

onso

lidat

ed A

ccou

nt in

201

4–15

. The

rest

ruct

ure

resu

lted

in a

redu

ctio

n in

di

strib

utio

ns p

aid

to g

over

nmen

t par

tially

offs

et b

y in

crea

sed

guar

ante

e fe

es p

ayab

le a

nd lo

wer

bor

row

ing

cost

s.

(e)

Ther

e is

a s

truct

ural

bre

ak in

201

6 re

flect

ing

the

trans

fer o

f the

Sou

th A

ustra

lian

Mot

or S

port

Boar

d to

the

gene

ral g

over

nmen

t sec

tor.

This

resu

lted

in a

n in

crea

se in

net

fina

ncia

l lia

bilit

ies

of $

3 m

illion

, and

a re

duct

ion

in n

et fi

nanc

ial w

orth

of

$12

mill

ion

in 2

015–

16, w

ith n

o im

pact

on

net w

orth

.



Non-financial public sector

Table C.6: Non-financial public sector key operating statement aggregates

Revenue Expenses

Net operating

balance

Net acquisition of non-financial

assets Net

lending

$m % real

growth % GSP $m % real

growth % GSP $m $m $m 1998–99 9 468 22.0 9 597 22.3 - 129 - 115 - 14 1999–2000 9 206 -5.2 20.3 9 552 -2.9 21.1 - 346 -3 508 3 161 2000–01 9 051 -4.5 18.8 9 279 -5.7 19.3 - 228 -1 111 883 2001–02 9 367 0.3 17.9 9 487 -0.9 18.1 - 120 - 124 5 2002–03 10 172 4.4 18.2 9 696 -1.7 17.4 476 72 405 2003–04 10 707 2.2 18.1 10 294 3.1 17.4 413 33 379 2004–05 11 343 3.5 18.4 11 029 4.6 17.9 314 125 189 2005–06 11 807 0.9 18.1 11 634 2.3 17.8 172 53 119 2006–07 12 321 1.7 17.5 12 175 2.0 17.3 147 173 - 26 2007–08 13 634 7.1 17.8 13 065 3.9 17.0 569 303 266 2008–09 14 360 2.1 18.0 14 567 8.1 18.3 - 207 1 249 -1 456 2009–10(a) 16 315 11.2 19.5 15 679 5.3 18.8 636 2 361 -1 725 2010–11(a) 15 960 -5.2 17.8 15 939 -1.5 17.8 21 1 920 -1 898 2011–12 16 866 3.0 18.5 16 908 3.3 18.5 - 41 1 383 -1 424 2012–13 16 494 -4.1 17.5 17 152 -0.6 18.2 - 657 64 - 721 2013–14(b) 16 399 -3.1 16.9 17 627 0.2 18.2 -1 229 715 -1 944 2014–15 17 651 6.0 17.8 17 965 0.4 18.1 - 314 - 198 - 116 2015–16 18 461 3.7 18.3 18 310 1.0 18.1 151 205 - 54 2016–17 19 425 3.7 18.8 19 315 3.9 18.7 110 3 372 -3 262 2017–18 20 120 1.5 19.1 19 821 0.6 18.8 300 808 - 508 2018–19 20 221 -1.5 18.8 19 874 -1.7 18.4 347 291 56 2019–20 20 607 -0.6 18.7 20 212 -0.8 18.3 395 246 150


(a) In 2009–10 and 2010–11 revenue, expenses and net acquisition of non-financial assets are impacted by the Commonwealth Government’s Nation Building ― Economic Stimulus Plan.

(b) There is a structural break in 2013–14 in the presentation of interest income and interest expense. Interest income earned on cash and deposits is offset with interest expense on the borrowings the Treasurer has with SAFA. This results in a reduction to interest income and interest expense accordingly.



Table C.7: Non-financial public sector key balance sheet aggregates ($million)

As at 30 June

Net debt (a) (b) Unfunded

superannuation $m


$m

Net financial worth

$m Net worth

$m

$m % of

revenue % of GSP

1988 4 397 1989 4 197 1990 4 457 1991 5 418 1992 8 142 1993 11 610 1994 10 550 1995 8 844 1996 8 432 1997 8 170 1998 7 927 1999 7 657 80.9 17.8 3 909 13 099 -12 256 10 624 2000 4 355 47.3 9.6 3 543 9 914 -8 986 12 445 2001 3 223 35.6 6.7 3 249 8 151 -7 109 14 816 2002 3 317 35.4 6.3 3 998 8 973 -7 902 14 721 2003 2 696 26.5 4.8 4 445 9 096 -8 811 15 288 2004 2 285 21.3 3.9 5 668 10 031 -9 550 15 760 2005 2 126 18.7 3.4 7 227 11 511 -11 004 16 359 2006 1 786 15.1 2.7 6 146 10 451 -9 889 19 703 2007(c) 1 989 16.1 2.8 5 075 9 518 -8 795 22 128 2008(d)(e) 1 611 11.8 2.1 6 468 10 208 -10 487 23 741 2009 2 872 20.0 3.6 8 939 14 302 -14 921 24 146 2010 4 487 27.5 5.4 9 478 16 626 -16 997 36 231 2011 6 541 41.0 7.3 9 096 18 273 -18 402 40 958 2012 7 996 47.4 8.8 13 523 24 500 -25 123 37 199 2013 8 949 54.3 9.5 11 085 23 064 -23 223 39 363 2014 10 964 66.9 11.3 10 877 24 811 -24 080 39 654 2015 10 676 60.5 10.8 11 358 25 167 -23 750 40 121 2016 10 912 59.1 10.8 14 029 28 281 -27 355 37 741 2017 13 628 70.2 13.2 12 894 30 157 -29 301 39 787 2018 14 062 69.9 13.3 12 514 30 386 -29 611 40 910 2019 14 085 69.7 13.1 12 099 30 138 -29 369 42 063 2020 14 006 68.0 12.7 11 648 29 836 -29 083 43 241


(a) Net debt data for the years before 1999 are sourced from the ABS, Government Financial Estimates 2003–04 (catalogue number 5501).

(b) There is a structural break in the methodology used to calculate superannuation liabilities between June 2003 and June 2004. This accounting change, which involved the adoption of the Commonwealth Government bond rate for valuation purposes in line with AASB 119, Employee Benefits, resulted in a significant increase in superannuation liabilities.

(c) There is a structural break in 2007 reflecting the amalgamation of SAFA and SAICORP on 1 July 2006. The transfer of SAICORP’s assets and liabilities from the general government sector to the public financial corporations sector resulted in an increase in non-financial public sector net debt of $99 million at 1 July 2006 and an increase in net financial liabilities of $90 million at 1 July 2006.

(d) There is a structural break in 2008 reflecting the amalgamation of the public financial corporation, South Australian Community Housing Authority, with the public non-financial corporation, South Australian Housing Trust. This resulted in an increase in net debt and net financial liabilities and a decrease in net financial worth of $98 million in 2007−08, with no impact on net worth.

(e) There is a structural break in 2008 reflecting the first time recognition on the general government balance sheet of South Australia’s share of the net assets of the Murray-Darling Basin Commission. This had no impact on net debt, however resulted in a reduction in net financial liabilities of $615 million in 2007–08, and an increase in net financial worth and net worth of $615 million.



Table C.8: Non-financial public sector receipts, payments and surplus(a) ($million)

Receipts Payments ABS Cash surplus 1979–80 2 681 2 388 292 1980–81 2 877 2 649 228 1981–82 3 145 2 963 182 1982–83 3 651 3 356 295 1983–84 4 383 4 014 369 1984–85 4 887 4 356 531 1985–86 5 172 4 415 757 1986–87 5 542 4 790 752 1987–88 6 078 5 299 780 1988–89 6 946 5 784 1 162 1989–90 7 517 6 465 1 052 1990–91 7 830 6 839 991 1991–92 8 352 7 969 383 1992–93 8 939 7 946 993 1993–94 8 761 8 119 642 1994–95 8 570 8 142 428 1995–96 8 985 8 654 331 1996–97 8 908 8 532 375 1997–98 9 426 8 895 532 1998–99 9 301 8 692 609 1999–2000 13 014 9 501 3 513 2000–01 10 572 9 414 1 158 2001–02 9 726 9 722 4 2002–03 10 439 9 805 634 2003–04 10 891 10 403 488 2004–05 12 051 11 786 265 2005–06 12 239 11 868 370 2006–07 12 684 12 809 - 125 2007–08 13 943 13 477 466 2008–09 14 563 15 806 -1 243 2009–10 16 847 18 695 -1 849 2010–11 16 548 18 553 -2 004 2011–12 17 431 18 863 -1 432 2012–13 17 814 19 133 -1 319 2013–14 16 640 18 647 -2 007 2014–15 17 841 17 896 - 55 2015–16 18 485 18 623 - 138 2016–17 19 972 23 336 -3 364 2017–18 20 592 21 174 - 582 2018–19 20 338 20 404 - 65 2019–20 20 707 20 619 89


(a) There is a break in the series between 1998–99 and 1999–2000. Data for the years before 1999–2000 is sourced from the ABS and are consistent with ABS GFS reporting requirements on a cash basis. Capital receipts and payments, including payments associated with the provision of financial support for state owned financial institutions, which were treated by the ABS then as an ‘investment in financial assets for policy purposes’, are not included in this series before 1999–2000. After 1998–99, data are derived from an accrual ABS GFS reporting framework, with receipts proxied by receipts from operating activities and sales of non-financial assets, and payments proxied by payments for operating activities, purchases of non-financial assets and net acquisition of assets under finance leases and similar arrangements. Due to the associated methodological and data-source changes, time series data that encompass measures derived under both cash and accrual accounting should be used with caution.



Tabl

e C

.9: N

on-fi

nanc

ial p

ublic

sec

tor o

pera

ting

stat

emen

t ($m

illio

n)

20

10–1

1 20

11–1

2 20

12–1

3 20

13–1

4 20

14–1

5 20

15–1

6 20

16–1

7 20

17–1

8 20

18–1

9 20

19–2

0

Rev

enue

Ta

xatio

n re

venu

e 3

467

3 47

6 3

726

3 80

5 4

072

4 08

3 4

118

4 24

2 4

380

4 57

5 G

rant

s 8

223

8 70

5 7

697

7 80

6 8

350

8 99

6 10

216

10

952

10

783

10

862

Sa

les

of g

oods

and

ser

vice

s 3

366

3 58

9 3

949

3 84

4 3

968

4 13

8 3

922

4 07

5 4

169

4 26

4 In

tere

st in

com

e(a)

163

1

63

131

4

6 3

4 3

3 2

7 2

6 2

7 3

0 D

ivid

end

and

inco

me

tax

equi

vale

nt in

com

e 9

1 5

1 5

6 8

1 5

04

466

3

38

31

33

29

Oth

er

651

8

83

935

8

16

724

7

46

804

7

95

830

8

47

Tota

l rev

enue

15

960

16

866

16

494

16

399

17

651

18

461

19

425

20

120

20

221

20

607

less

Exp

ense

s

Em

ploy

ee e

xpen

ses

6 62

5 6

959

7 29

9 7

544

7 68

3 7

913

8 14

5 8

368

8 45

4 8

597

S

uper

annu

atio

n ex

pens

es

S

uper

annu

atio

n in

tere

st c

ost

427

4

07

314

4

68

438

4

02

345

3

55

344

3

32

Oth

er s

uper

annu

atio

n ex

pens

es

649

6

92

700

7

62

764

7

71

891

9

06

917

9

33

Dep

reci

atio

n an

d am

ortis

atio

n 1

024

1 07

8 1

166

1 23

6 1

275

1 32

1 1

363

1 48

7 1

548

1 56

3 In

tere

st e

xpen

ses(a

) 4

93

639

5

99

509

5

19

483

5

12

637

5

68

573

O

ther

ope

ratin

g ex

pens

es

4 47

2 4

716

4 84

9 4

892

4 88

6 5

045

5 34

7 5

503

5 63

0 5

785

Gra

nts

2 24

9 2

417

2 22

4 2

218

2 40

1 2

376

2 71

3 2

564

2 41

4 2

429

Tota

l exp

ense

s 15

939

16

908

17

152

17

627

17

965

18

310

19

315

19

821

19

874

20

212

equa

ls N

et o

pera

ting

bala

nce

21

- 41

- 657

-1

229

- 3

14

151

1

10

300

3

47

395

pl

us O

ther

eco

nom

ic fl

ows

2 83

1 -3

772

2

822

1 52

0 7

53

-2 4

72

1 93

6 8

24

806

7

82

equa

ls C

ompr

ehen

sive

resu

lt —

tota

l cha

nge

in n

et w

orth

2

852

-3 8

14

2 16

4 2

91

439

-2

321

2

046

1 12

4 1

153

1 17

7

Net

ope

ratin

g ba

lanc

e 2

1 - 4

1 - 6

57

-1 2

29

- 314

1

51

110

3

00

347

3

95

less

Net

acq

uisi

tion

of n

on-fi

nanc

ial a

sset

s

Pu

rcha

ses

of n

on-fi

nanc

ial a

sset

s 3

217

2 75

0 2

683

2 12

6 1

429

1 70

4 5

255

2 87

4 2

061

1 96

7 le

ss S

ales

of n

on-fi

nanc

ial a

sset

s 2

81

331

1

428

333

2

97

195

5

39

546

1

89

140

le

ss D

epre

ciat

ion

1 02

4 1

078

1 16

6 1

236

1 27

5 1

321

1 36

3 1

487

1 54

8 1

563

plus

Cha

nge

in in

vent

orie

s 7

4

1 - 2

6 1

58

- 55

17

19

- 33

- 34

- 19

plus

Oth

er m

ovem

ents

in n

on-fi

nanc

ial a

sset

s —

—

—

—

—

—

—

—

—

—

eq

uals

Tot

al n

et a

cqui

sitio

n of

non

-fina

ncia

l ass

ets

1 92

0 1

383

64

715

- 1

98

205

3

372

808

2

91

246

eq

uals

Net

lend

ing/

borr

owin

g -1

898

-1

424

- 7

21

-1 9

44

- 116

- 5

4 -3

262

- 5

08

56

150

N

ote:

Tot

als

may

not

add

due

to ro

undi

ng.

(a)

Ther

e is

a s

truct

ural

bre

ak in

201

3–14

in th

e pr

esen

tatio

n of

inte

rest

inco

me

and

inte

rest

exp

ense

. Int

eres

t inc

ome

earn

ed o

n ca

sh a

nd d

epos

its is

offs

et w

ith in

tere

st e

xpen

se o

n th

e bo

rrow

ings

the

Trea

sure

r has

with

SA

FA.

This

resu

lts in

a re

duct

ion

to in

tere

st in

com

e an

d in

tere

st e

xpen

se a

ccor

ding

ly.



Tabl

e C

.10:

Non

-fina

ncia

l pub

lic s

ecto

r bal

ance

she

et ($

mill

ion)

As a

t 30

June

20

11

2012

20

13

2014

20

15

2016

20

17

2018

20

19

2020

Asse

ts

Fina

ncia

l ass

ets

Cas

h an

d de

posi

ts(a

) 3

961

1 20

7 1

440

1 35

4 1

326

1 50

6 1

255

1 25

8 1

288

1 34

3 Ad

vanc

es p

aid

99

77

62

55

24

24

47

45

42

37

Inve

stm

ents

, loa

ns a

nd p

lace

men

ts

228

2

42

270

2

93

317

3

40

353

3

65

379

3

92

Rec

eiva

bles

6

35

662

8

77

803

8

37

951

8

78

876

9

16

918

Eq

uity

Inve

stm

ents

in o

ther

pub

lic s

ecto

r ent

ities

- 1

28

- 623

- 1

59

731

1

416

926

8

56

775

7

69

753

Inve

stm

ents

— o

ther

7

61

852

8

48

853

8

83

905

8

97

897

8

97

897

O

ther

fina

ncia

l ass

ets

83

126

5

6 3

9 8

3 9

2 9

1 9

7 9

6 9

5 To

tal f

inan

cial

ass

ets

5 63

8 2

543

3 39

4 4

129

4 88

7 4

743

4 37

7 4

313

4 38

7 4

435

Non

-fina

ncia

l ass

ets

Land

and

fixe

d as

sets

59

302

62

311

62

574

63

726

63

868

65

084

69

069

70

503

71

413

72

304

O

ther

non

-fina

ncia

l ass

ets

57

12

12

8

4

13

18

19

19

20

Tota

l non

-fina

ncia

l ass

ets

59 3

59

62 3

22

62 5

86

63 7

34

63 8

72

65 0

96

69 0

87

70 5

22

71 4

33

72 3

24

Tota

l ass

ets

64 9

97

64 8

66

65 9

81

67 8

63

68 7

59

69 8

39

73 4

64

74 8

35

75 8

20

76 7

60

Liab

ilitie

s

D

epos

its h

eld

171

1

77

172

1

83

204

2

26

226

2

26

227

2

27

Adva

nces

rece

ived

5

92

590

2

32

214

2

52

234

2

32

224

2

16

207

Bo

rrow

ing(a

) 10

065

8

755

10 3

18

12 2

70

11 8

88

12 3

22

14 8

25

15 2

79

15 3

50

15 3

45

Supe

rann

uatio

n 9

096

13 5

23

11 0

85

10 8

77

11 3

58

14 0

29

12 8

94

12 5

14

12 0

99

11 6

48

Oth

er e

mpl

oyee

ben

efits

2

106

2 48

6 2

531

2 52

5 2

695

2 90

2 2

954

3 08

8 3

223

3 38

8 Pa

yabl

es

1 07

7 1

204

1 21

5 1

102

1 30

4 1

320

1 32

9 1

337

1 34

5 1

356

Oth

er li

abilit

ies

932

9

32

1 06

4 1

038

937

1

066

1 21

8 1

256

1 29

6 1

349

Tota

l lia

bilit

ies

24 0

40

27 6

67

26 6

17

28 2

09

28 6

37

32 0

99

33 6

77

33 9

24

33 7

56

33 5

19

Net

wor

th

40 9

58

37 1

99

39 3

63

39 6

54

40 1

21

37 7

41

39 7

87

40 9

10

42 0

63

43 2

41

Net

fina

ncia

l wor

th

-18

402

-25

123

-23

223

-24

080

-23

750

-27

355

-29

301

-29

611

-29

369

-29

083

Net

fina

ncia

l lia

bilit

ies

18 2

73

24 5

00

23 0

64

24 8

11

25 1

67

28 2

81

30 1

57

30 3

86

30 1

38

29 8

36

Net

deb

t 6

541

7 99

6 8

949

10 9

64

10 6

76

10 9

12

13 6

28

14 0

62

14 0

85

14 0

06

Not

e: T

otal

s m

ay n

ot a

dd d

ue to

roun

ding

.

(a)

Ther

e is

a s

truct

ural

bre

ak in

201

2 re

flect

ing

that

cas

h an

d de

posi

ts h

eld

by th

e Tr

easu

rer a

re o

ffset

with

bor

row

ings

that

the

Trea

sure

r has

with

SAF

A. T

his

resu

lts in

a re

duct

ion

in c

ash

and

depo

sits

, and

bor

row

ings

of $

3.13

4 bi

llion,

with

no

impa

ct o

n bo

th n

et w

orth

and

net

deb

t.



www.statebudget.sa.gov.au2016 17 State Budget

www.statebudget.sa.gov.au

Department of Treasury and Finance

State Administration Centre 200 Victoria Square, Adelaide South Australia, 5000

GPO Box 1045, Adelaide South Australia, 5001

Telephone: +61 (08) 8226 9500 www.treasury.sa.gov.au

2016 17 state budget -...

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