annual report...functions consistent with the tasmanian government’s commitment to resetting the...

Depar tment of Communit i tes Tasmania

Annual Report2018–2019

© Government of Tasmania 2019

This work is copyright. Apart from use as permitted under the Copyright Act, no part may be reproduced by any process without the written permission of the Department of Communities Tasmania.

Published by Executive Coordination and Communications Department of Communities Tasmania GPO Box 65 HOBART TAS 7001

ISSN 2652-3744

Table of ContentsSubmission to the Ministers 3

Secretary’s Report 4

Our Department .....................................................................................................................................................6Our business ............................................................................................................................................................6Our creation ............................................................................................................................................................7Our future work priorities ........................................................................................................................................7Our governance .......................................................................................................................................................8Our internal community ...........................................................................................................................................9

Our Year 10

Our People 12

Staffing information ............................................................................................................................................... 12Leave management ...............................................................................................................................................14Human resource activities .....................................................................................................................................14Communities Tasmania diversity ...........................................................................................................................15Flexible working arrangements .............................................................................................................................. 17

Superannuation Declaration 19

Children and Youth Services 20

Our purpose ...........................................................................................................................................................20Our team ............................................................................................................................................................ 21Our Achievements ................................................................................................................................................. 21Our future priorities ...............................................................................................................................................22Child Advocate .......................................................................................................................................................24

Communities, Sport and Recreation 26

Our purpose ...........................................................................................................................................................26Our team ............................................................................................................................................................27Our achievements ..................................................................................................................................................27Our future priorities ...............................................................................................................................................30

Housing, Disabilities and Community Services 32

Our purpose ...........................................................................................................................................................32Our team ............................................................................................................................................................32Our achievements ..................................................................................................................................................33Our future priorities ...............................................................................................................................................34

DEPARTMENT OF COMMUNITIES TASMANIA | ANNUAL REPORT 2019 | 1

Our legislation and transparency 38

Bills tabled ............................................................................................................................................................40Key changes to legislation ......................................................................................................................................40Subordinate legislation made .................................................................................................................................40Right to information ...............................................................................................................................................40

Our performance measures 47

Children and Youth Services ..................................................................................................................................47Custodial and community youth justice .................................................................................................................48Children services system management ..................................................................................................................48Communities, Sport and Recreation ......................................................................................................................49Housing, Disability and Community Services ........................................................................................................50

Our Finances

Department of Communities Tasmania – Financial Statements ...................................................... see Appendix ADirector of Housing Special Report .................................................................................................. see Appendix B

2 | DEPARTMENT OF COMMUNITIES TASMANIA | ANNUAL REPORT 2019

Submission to the MinistersRoger Jaensch MP

Minister for Aboriginal Affairs.

Minister for Disability Services and Community Development.

Minister for Housing.

Minister for Human Services.

Minister for Planning.

Guy Barnett MP

Minister for Energy.

Minister for Primary Industries and Water.

Minister for Resources.

Minister for Veterans’ Affairs.

Jeremy Rockliff MP

Deputy Premier

Minister for Education and Training.

Minister for Mental Health and Wellbeing.

Minister for Sport and Recreation.

Will Hodgman MP

Premier

Minister for Advanced Manufacturing and Defence Industries.

Minister for Prevention of Family Violence.

Minister for Tourism, Hospitality and Events.

Minister for Trade.

Sarah Courtney MP

Minister for Health.

Minister for Women

Dear Ministers

In accordance with the requirements of Section 36 of the State Service Act 2000 and Section 27 of the Financial Management and Audit Act 1990, I submit to you, for presentation to Parliament, this report on the affairs and activities of the Department of Communities Tasmania for the financial year ended 30 June 2019.

Yours sincerely

Michael Pervan

SecretaryDepartment of Communities Tasmania

28 October 2019



Secretary's ReportCommunities Tasmania undertakes work which I’m very passionate about. I’ve enjoyed working again with so many familiar faces and it’s been great to get a better understanding of the diverse work of our Communities, Sport and Recreation team who are without doubt equally as passionate when it comes to creating, strong, active and resilient communities.

Communities Tasmania was created on 1 July 2018 and brought together a range of services from across government which were specifically aimed at growing and maintaining resilient communities. This collaboration has allowed us to think strategically about the impact we have within our community and how best to leverage that into positive support, action and change.

I would like to recognise the resilience of staff who transitioned from other agencies and the way in which people worked together. I would also like to commend the Agency Executive team for the leadership and support shown to staff, led predominately by Ginna Webster over the past twelve months.


Communities Tasmania provides many opportunities for its employees to undertake roles where staff can make a significant difference to peoples’ lives. Whether it’s working in the provision of statutory services to children and young people, developing and implementing policy, interacting with Tasmanians who need housing, working with our sporting and recreation organisations or developing high-performing athletes – there are a breadth of opportunities on offer. But ultimately, we have sought out people who want to contribute to improving the lives of Tasmanians. We do this by the way we think and the way we behave, which is shown by our Agency Values. Our Values are that we interact and support each other to be respectful, committed, kind and connected.

Communities Tasmania has spent the past year connecting with our partners in the communities, with sporting and recreation organisations and with families, children, young people and carers, to empower Tasmanians to lead active and inclusive lives.

Throughout 2018-19 the Agency has been busy delivering on a number of significant plans and reforms. Some key focus areas for the past 12 months have included:

• Supporting the Reset – Aboriginal Affairs - assisting with the governance, representative engagement and advisory functions consistent with the Tasmanian Government’s commitment to Resetting the Relationship with Tasmanian Aboriginal communities.

• Strong Families, Safe Kids – Child Safety Service Redesign - ongoing implementation of the redesign including the creation and rollout of the Statewide Advice and Referral Service and the Out of Home Care Foundations Project.

• Prevention of Elder Abuse – launch of the Respect and Protect Older Tasmanians: Tasmania’s Elder Abuse Prevention Strategy 2019-2022.

• National Disability Insurance Scheme (NDIS) – supporting the ongoing transition to the national system.

• Affordable Housing – completion of Tasmania’s Affordable Housing Action Plan 2015-2019 (Action Plan 1) and launch of Tasmania’s Affordable Housing Action Plan 2019-2023 (Action Plan 2).

• Ticket to Play Sports Voucher Program – making vouchers up to $100 available to eligible Tasmanians aged 5-17 to contribute towards sporting club memberships

• Family Violence and Sexual Violence Action Plan – to provide an increased focus on sexual violence within family violence.

This Annual Report contains many more examples of the important work our people have contributed to over the last 12 months. I am proud to be part of this effort and look forward to exploring greater opportunities to collaborate across the state service to ensure we are providing the best possible support and opportunities to creating strong, active and inclusive communities.

Michael Pervan Secretary

Our Department The Department of Communities Tasmania was formed in July 2018 by bringing together business units previously located in the Department of Premier and Cabinet, and the Department of Health and Human Services.Communities Tasmania’s four client service deliver divisions are:

• Children and Youth Services

• Communities, Sport and Recreation

• Housing, Disability and Community Services

• Silverdome

The Department also comprises business support, specialist advice, strategic and project functions.

OUR BUSINESS

Communities Tasmania is committed to creating strong, active and inclusive communities. We want our children, families and communities to thrive and be strong and resilient. Communities Tasmania provides opportunities for all Tasmanians to participate in community life and sport and recreation; supports, protects and nurtures vulnerable children, young people and their families; delivers and facilitates specialist disability services; and provides services to support social and affordable housing. A great deal of our work is focussed on working with people who have experienced disadvantage and/or social exclusion.

To create strong, active and inclusive communities the Department collaborates with a range of partners, including non-government organisations to empower individuals and families throughout Tasmania to lead fulfilling lives.

The name of this new Agency is significant and reflects the Tasmanian Government’s ongoing commitment to work in close partnership with the community, for the community.


OUR CREATION

During the first year of operation, we established the Agency and developed a Strategic Plan to guide future action. The Strategic Plan was launched on 1 July 2019 and includes our vision, mission, values, strategic objectives and key enablers. Our corporate values were also developed following consultation with staff and a sample of community partners. We now have a clear future direction.

Our vision

Communities in Tasmania are strong, active and inclusive

Our mission

Empower individuals, families and communities to thrive

Our values

We are respectful, committed, connected and kind

Our strategic objectives

We will:

• Work with communities to offer all Tasmanians the opportunity to participate positively in community life.

• Work with partners to identify and pursue early opportunities to improve the wellbeing of individuals, families and communities.

• Work with families, carers and the community to keep children and young people safe.

• Work together to continue to build a high performing, committed and engaged organisation.

• Work with communities, sport and recreation organisations to support the growth of strong and sustainable sectors.

Our enablers

We will use the following enablers to help us reach our goals:

• Valued partnerships – collaborate with communities, industry and across government to deliver effective and integrated services, policies and programs for Tasmanian communities.

• Accountable organisation – develop the quality and accountability mechanisms to deliver outcomes effectively and efficiently.

• Strong systems – ensure our systems and infrastructure are fit for purpose.

• Well supported people – build the capability of our people and support networks.

• Innovation – continuously improve the way we design programs, services and tools to put people at the centre.

• Knowledge – improve the way we develop, apply, share and integrate information.

OUR FUTURE WORK PRIORITIES

Over the coming financial year, we will progress our Corporate Plan. This will reflect our strategic objectives and ensure that we meet our announced commitments. The Corporate Plan will inform divisional planning processes so that all parts of the Agency are working together to ensure we are a high-performing organisation that is able to develop strong, active and inclusive communities.


OUR GOVERNANCE

Communities Tasmania has five Ministers:

The Hon Will Hodgman MP, Premier and Minister for the Prevention of Family Violence;

The Hon Roger Jaensch MP, Minister for Human Services, Minister for Housing, Minister for Disability Services and Community Development and Minister for Aboriginal Affairs;

The Hon Sarah Courtney MP, Minister for Women;

The Hon Guy Barnett MP, Minister for Veterans Affairs; and

The Hon Jeremy Rockliff MP, Minister for Sport and Recreation.

The Department’s governance structure includes:

• The Agency Executive is the highest-level governance body and comprises the most senior divisional representatives. This group considers strategic issues, performance and risk.

• The Senior Leaders Group comprises Directors from all business units from across the Agency. This group can be tasked with specific actions by Agency Executive and acts as a sounding board for strategic issues and policy development.

• The Inclusion and Culture Committee includes representatives from all levels and all divisions across the Agency. It works to support an inclusive workplace and foster positive workplace culture.

• The Audit Committee considers major risks to the Department.

• The Strategic Policy Liaison Group considers how best to coordinate strategic policy responses.

Communities Tasmania’s governance structure will continue to develop a Departmental Quality Governance Framework next year.


OU

R I

NT

ER

NA

L C

OM

MU

NIT

Y


Secr

etar

yM

icha

el P

erva

n

Chi

ldre

n an

d Y

outh

Se

rvic

esM

andy

Cla

rke

Dep

uty

Secr

etar

y

Chi

ld S

afet

y Se

rvic

ePa

m H

onan

Dir

ecto

r

Pro

gram

Sup

port

, Le

arni

ng a

nd

Dev

elop

men

tSu

san

Dia

mon

dD

irec

tor

Stra

tegi

c Y

outh

Se

rvic

esG

reg

Brow

nD

irec

tor

Com

mun

itie

s, S

port

an

d R

ecre

atio

nK

ate

Ken

tD

eput

y Se

cret

ary

Tas

man

ian

Inst

itut

e of

Spo

rtPa

ul A

uste

nD

irec

tor

Spor

t an

d R

ecre

atio

nH

elen

Lan

genb

erg

Man

ager

Gra

nts,

Spo

rt a

nd

Rec

reat

ion

Infr

astr

uctu

reM

ark

Gre

enM

anag

er

Pol

icy

and

Pro

gram

sN

ick

Atk

ins

A/M

anag

er

Offi

ce o

f Abo

rigi

nal

Affa

irs

Wen

dy D

awso

nA

/Man

ager

Hou

sing

, Dis

abili

ty a

nd

Com

mun

ity

Serv

ices

Pete

r W

hite

Dep

uty

Secr

etar

y

Dis

abili

ty a

nd

Com

mun

ity

Serv

ices

Ingr

id G

anle

yD

irec

tor

Hou

sing

Pro

gram

sJe

ssem

y St

one

Dir

ecto

r

Por

tfol

io a

nd S

uppl

yR

icha

rd G

ilmou

rD

irec

tor

Ten

ancy

Ser

vice

sLy

nden

Pen

nico

ttD

irec

tor

Info

rmat

ion

Syst

ems

and

Stra

tegy

Kat

ie A

ult

Dir

ecto

r

Est

ablis

hmen

t P

roje

ctR

oss

Hin

kley

/War

ren

Lew

isPr

ojec

t M

anag

er

Bud

get

and

Fina

nce

Rod

Faz

acke

rley

Prin

cipa

l Fin

ance

Offi

cer

Silv

erdo

me

Scot

t W

oodh

amBu

sine

ss M

anag

er

Hum

an R

esou

rces

an

d W

orkp

lace

R

elat

ions

Liz

Jess

upM

anag

er

Wor

kfor

ce S

trat

egy

Nat

alie

Jack

son

Man

ager

Safe

ty, W

ellb

eing

and

In

dust

rial

Rel

atio

nsBr

ett

Cha

rlto

nA

ssis

tant

Dir

ecto

r

Offi

ce o

f the

Sec

reta

rySa

m G

unne

rD

irec

tor

Stra

tegy

and

E

ngag

emen

tM

at H

eale

yEx

ecut

ive

Dir

ecto

r

Com

mun

ities

Tas

man

ia O

rgan

isat

iona

l Str

uctu

re

Pla

nnin

g an

d P

erfo

rman

ce

Cap

abili

ty a

nd R

esou

rces

Kat

hy B

aker

Exec

utiv

e D

irec

tor

Lega

l Ser

vice

s

Pro

gram

Sup

port

War

ren

Lew

isM

anag

er

Pol

icy

and

Pro

ject

s

As a

t 29

Octo

ber 2

019

Our YearOur key strategies and plans:

o Tasmania’s Affordable Housing Action Plan 2019-2023

o Financial Security for Women Action Plan 2018-2021

o Interim Disability Action Plan 2018-2021

o Our Multicultural Island: Tasmania’s Multicultural Policy and Action Plan 2019-2022

o Tasmania’s Elder Abuse Prevention Strategy 2019-2022

o Neighbourhood Houses Strategic Framework 2018-2023 and Tasmanian Government and Neighbourhood Houses Protocol

Launched

Ticket to

Play grants

program

Youth

at Risk

Strategy

continued

Launched the Tasmanian Prevention against Elder Abuse Strategy

Continued transition

to National Disability Insurance Scheme

Out of

Home Care

Foundations

Program

Completed

Affordable

Housing

Action

Plan 1

Launched trial of the Intensive Family Engagement Service

Implementation of Advice and Referral Line


Our grants programs funded:

o funding for several organisation to improve food security for Tasmanians;

o funding for new premises for the Sorell Men’s Shed and Heritage Museum;

o increased core funding for Neighbourhood Houses, plus $2 million for capital works;

o $3 million over three years for sports facilities in Scottsdale, including a swimming pool and netball courts;

o $750 000 over three years for Netball Tasmania;

o $1.1 million for the Wynyard Yacht Club and Multi-Purpose Facility;

o $1.78 million over four years for Surf Life Saving Tasmania to increase beach patrols and support surf rescues; and

o $400 000 for a new football facility in Launceston.

Established a new

Agency

Child and

Youth

Wellbeing

Framework

Developed our

Strategic Plan

Child and Family

Wellbeing Assessment tool

25 new Child Safety front line

staff

Developed

Corporate

Values

Introduced a Foster Care Allowance program to encourage young people to complete year 12

Extended Out of Home Care for young people up to age 21


Our People We have teams based across the State delivering services to the Tasmanian Community. We seek to provide a values-based workplace that is safe and supports our team members to be their best.

STAFFING INFORMATION

Paid headcount and paid FTE by division

Headcount FTE

Division Female Male Total Female Male Total

Capability and Resources 29 18 47 25.26 15.52 40.78

Children and Youth Services 364 121 485 316.85 112.04 428.89

Commissioner for Children and Young People 8 0 8 7.2 0 7.2

Strategy and Engagement 20 8 26 18.44 8.65 27.09

Executive Coordination and Communication 11 3 14 10.6 3 13.6

Housing, Disability and Community Services 151 61 212 132.82 58.54 191.36

Communities, Sport and Recreation 47 26 73 41.54 25.7 67.24

Totals 630 237 867 552.71 223.45 776.16


Employees by gender and employment type Employees by gender and employment status

Employees by gender and age group

0% 2% 4% 6% 8% 10% 12%

DCT-Male

0%2%4%6%8%10%12%

20-2425-2930-3435-3940-4445-4950-5455-5960-64=>65DCT- Female

Senior Executives by gender and classification

Classification Male Female Total

SES1** 3 5 8

SES2** 2 2 4

SES3 0 2 2

SES4 and Head of Agency

0 1 1

Totals 5 10 15

** Communities Tasmania currently has 2 vacant offices.

Employees by gender and award

539

72

8 11

191

374 5

0

100

200

300

400

500

600

Permanent Fixed Term Casual SES

Female Male

237 25285 46 26 11

49 6143 22 12 5

0%10%20%30%40%50%60%70%80%90%

100%

Jun-19 Jun-19 Jun-19 Jun-19 Jun-19 Jun-19

AHP 1-3 AHP 4-6 Band 1-6 Band 7-10 HSO SES

f m

405

216

9

194

395

0

50

100

150

200

250

300

350

400

450

Full Time Part Time Casual

Female Male


LEAVE MANAGEMENT

Personal leave

Communities Tasmania employees took an average of 10.52 days’ personal leave in 2018-19.

Leave liability

Classification Totals

Average number of days recreation leave per employee 14.8

Employees with >40 days recreation leave 42

Average number of days LSL per employee with minimum 10 years’ service 43.89

Employees with >100 days LSL 0

Targeted and Negotiated Voluntary Redundancies (TNVR), Workforce Renewal Incentive Program (WRIP) and SES terminations

The transition to the National Disability Insurance Scheme (NDIS) commenced on 1 July 2016, with full scheme NDIS being effective from 1 July 2019. The key finding of the independent review of the Disability and Community Services (DCS) team was that the NDIS changed the role and focus of the Department of Health and Human Services, and subsequently the newly formed Communities Tasmania, in relation to the provision of specialist disability services and programs. Consequently, provision of specialist disability services by the DCS team has been gradually reducing and most services ceased to be delivered after 30 June 2019. Directly affected employee transition options included Targeted and Voluntary Negotiated Redundancies (TNVR). Communities Tasmania paid 29 Targeted and Negotiated Voluntary Redundancies to former Disability and Community Services employees.

Three payments were made under the Workforce Renewal Incentive Program. No Senior Executive contracts were ceased early during 2018-19.

HUMAN RESOURCE ACTIVITIES

Performance management

We are committed to making Communities Tasmania an engaging and supportive workplace that develops and fosters its people. The current Performance and Development Agreement (PDA) process provides a mechanism to assess employee performance, identify key tasks for the following 12 months, consider professional and learning opportunities and to focus on any other actions to develop, promote and support continuous development.

The release of the Auditor-General’s report on Performance Management in the State Service informed the need for a renewed focus on performance and development, including the effectiveness of performance discussions between managers and employees. Communities Tasmania has considered the recommendations and is developing a plan to implement a more robust performance management and development framework to enhance engagement of employees and ensure that appropriate capability improvement and development occurs to achieve strategic priorities.


An inclusive and positive workplace culture

Communities Tasmania is committed to providing an inclusive and positive workplace culture where people are valued and respected and can be their best. In April 2019, Communities Tasmania established an Inclusion and Culture Committee (ICC) which is chaired by the Secretary and has state-wide membership comprising representatives from the Agency Executive, Senior Leaders Group and every business unit of the organisation. The Committee was formed to:

• support an inclusive workplace, that:

o is people-focused and reflects the diverse community that we serve

o values the diverse perspectives that come from different skill-sets, education, qualifications and work and life experiences

• foster a positive culture, that:

o establishes and embeds organisational values and behaviours

o promotes kind, open and timely communication

o supports innovative thinking and employee wellbeing.

After consulting employees and key partner organisations in June 2019, the ICC established a set of four over-arching Agency values:

• Committed

• Respectful

• Connected

• Kind.

These values were chosen to:

• help shape our identity as an organisation

• strengthen our services and to bring our divisions together

• influence the way we develop and deliver our policies and procedures

• inform our practice and service delivery to the community

• impact the way we work together and with our clients and partner organisations

• keep us accountable to each other.

To help embed our values in our daily interactions, the ICC established a growing network of Values Champions, with membership from each region and across every business area. The network provides a mechanism to reinforce values-based behaviours, share ideas and resources, and help develop stronger connections across the Agency.

COMMUNITIES TASMANIA DIVERSITY

The diversity profile of Communities Tasmania is reflected through the results of the 2018 Tasmanian State Service Employee Survey. Between 18 September and 8 October 2018, 359 Communities Tasmania employees responded to this survey.

The results from this indicate that Communities Tasmania is an Agency that supports diversity and inclusion. Eighty-one per cent of respondents agreed that the people in their work group and colleagues had a positive attitude towards employees with diverse backgrounds, which was higher than the overall Tasmanian State Service (TSS) result of 80 per cent. In particular, results indicate that employees feel that those with caring responsibilities, from different cultural backgrounds and who identify as members of the lesbian, gay, bisexual, transgender and intersex (LGBTIQ) community, are welcomed and supported in our Agency. Of note, the proportion of Communities Tasmania respondents who agreed that there is a positive attitude within Communities Tasmania to employees who identify as members of the LGBTIQ community was 11 per cent higher than the TSS overall.


The data from the 2018 TSS Employee Survey has informed the Inclusion and Culture Committee’s early preparation for diversity and inclusion initiatives within the Agency and will be used to support the development of future strategies to enhance inclusive work practices.

In 2018 Communities Tasmania also reported against its Joint Interim Disability Action Plan 2018-2021 alongside the Department of Health.

Communities Tasmania diversity profile based on the 2018 TSS Employee Survey

• Sixty eight per cent of respondents were female and 28 per cent male (4 per cent preferred not to say).

• Six per cent of respondents identify as a member of the LGBTIQ community, which is higher than the overall TSS result of 3 per cent.

• Thirty three per cent of respondents were 45 – 54 years-of-age, which is consistent with the age of respondents across the TSS.

• Two per cent of respondents were under 25 years of age, which is lower than the overall TSS result of 3 per cent.

• Eight per cent of respondents indicated they have a disability that restricts them from performing everyday activities and is long-term, which is higher than the TSS overall result of 6 per cent.

• Four per cent of respondents identify as of Aboriginal and/or Torres Strait Islander origin, which is higher than the TSS overall result of 3 per cent.

• Fourteen per cent of respondents were born outside of Australia and 9 per cent are proficient in a language besides English. The most widely spoken language by respondents other than English, is French, followed by Mandarin and German.

• Fifty per cent of respondents provide primary care for a child or adult and 13 per cent provide daily care for a person or people with a disability or chronic illness. Both are higher than the TSS overall results, which are 43 and 11 per cent respectively.

• Sixty three per cent of respondents have a bachelor’s degree or higher and 15 per cent have a master’s degree or higher. In both cases this is higher than the TSS overall result of 60 and 13 per cent respectively.

0 10 20 30 40 50 60 70 80 90

There is a positive attitude within Communities Tasmania inrelation to employees who identify as members of the

LGBTIQ community

Employees from different cultural backgrounds arewelcomed and supported in Communities Tasmania

Communities Tasmania supports employees who havecaring responsibilities

The people in my work group and col leagues have a positiveattitude towards employees with diverse backgrounds

Percentage agreement

Agreement with the statement:

Communities Tasmania TSS Overall


Contemporary human resources practices and policies

As a new Agency, we have focused our efforts on developing a suite of human resource (HR) policies, procedures and fact-sheets to support our managers and employees in the workplace.

There has also been a focus on more contemporary recruitment practices, ensuring they are people-focussed, accessible and reflective of the diverse community that we serve.

There has also been a sustained focus on the Agency’s diversity program which has broadened into an inclusion and positive culture-building program to establish and embed organisational values and behaviours, to support a workplace where people are valued and respected and acknowledge diverse perspectives that come from different work and life experiences.

Flexible working arrangements

We are committed to supporting flexibility for our employees, recognising the need to balance the demands of work and home life. These flexible arrangements include changes to hours and patterns or locations of work. The Agency works collaboratively with all employees to provide a supportive workplace that enables the requirements of the Agency to be met whilst providing employees the opportunity to meet their personal commitments.

Grievance resolution

The Agency is a values-based organisation that is committed to providing a positive and inclusive workplace culture and has established an Inclusion and Culture Committee which will focus on determining acceptable workplace behaviours aligned with the key values. Our formal Grievance Management Procedure is designed to achieve consistent treatment in the handling of personal grievances in the workplace and to provide a procedure to follow in the

event a personal grievance arises. The procedure provides a fair and transparent process for the resolution of grievances and complaints raised by staff regarding employment related matters. It encourages possible complaints/grievances to be resolved informally and locally to lead to a prompt and fair resolution of issues.

There were three formal grievances reported in the Agency in 2018-19.

Work health and safety strategies

Communities Tasmania is committed to the safety and wellbeing of employees and people under our care and custodianship. Following the creation of the Department, Communities Tasmania has had a focus on workplace strategies for supporting and managing mental health in the workplace, in particular the provision of Mental Health First Aid training. Communities Tasmania has also recently developed its own Injury Management Program, obtaining accreditation from WorkCover Tasmania.

Improving the reporting and monitoring of safety incidents and hazards has also been a key focus for Communities Tasmania during the past 12 months. This has included the creation of process measure dashboards for risk and hazard reporting, as well as stakeholder training across the Agency for Executives, Managers and staff.

Communities Tasmania will be implementing additional governance arrangements for Safety, Wellbeing and Injury Management during the next 12 months. Future activities will also include conducting a needs analysis to scope the development and implementation requirements of a new safety management system that will identify meaningful lead indicators for safety management based on our diverse risk profile.


Workers compensation

As at 30 June 2019, the number of workers compensation claims lodged by Communities Tasmania employees during the financial year 2018-19 was 43. This comprised 14 psychological claims and 29 physical claims. This compares to a total of 50 claims lodged in 2017-18 and 60 claims lodged in 2016-17, being claims from those Divisions that transferred to Communities Tasmania. As at 30 June 2019, there are 33 open claims (including claims lodged in previous years).

Work health and safety

Communities Tasmania has robust safety systems and throughout 2018-19 has undertaken hazard and risk analysis across a number of its work sites, resulting in changes to physical infrastructure and policies and procedures.

Work Health and Safety Incidents

Hazards Total

Children and Youth Services 243 22 265

Housing, Disability and Community Services 44 7 51

Strategy and Engagement 4 0 4

Capability and Resources 0 1 1

Executive Coordination and Communication 0 0 0

Communities, Sport and Recreation 0 1 1

Totals 291 31 322


Superannuation Declaration

I, Michael Pervan, Secretary, Department of Communities Tasmania, hereby certify that:

• All Communities Tasmania employee payments in respect of which an employer superannuation liability arises have been identified;

• The appropriate rate of employer superannuation liability has been applied to those employee payments; and

• Payment of Communities Tasmania employer superannuation contributions has been made to employee-nominated complying superannuation funds in accordance with all legislative requirements and within legislated timeframes.

Michael Pervan

Secretary


Children and Youth ServicesOUR PURPOSE The vision for Children and Youth Services (CYS) is for Tasmania’s children, young people and their families to be resilient, capable, nurtured and well. CYS aims to ensure children and young people are safe, secure and well by building constructive relationships with families and caregivers, and through sharing this responsibility.

As well as embracing the Agency wide values, CYS also works to the key values of:

• Respect

• Integrity

• People Centred

• Continuous Improvement

And four core practice elements:

Child-centred: A child-centred approach means that the child or young person’s voice, needs, safety and wellbeing are central to everything we do.

Family and Caregiver Focussed: Working in partnership with families and caregivers helps to provide children with safety, stability and connection through relational continuity.

Culturally Responsive: Children, young people and families do better when they are placed at the centre of their own care and are able to develop a strong sense of identity and belonging.

Sharing Responsibility: Children, families and caregivers are supported by community and government services working together as a shared responsibility.


OUR TEAM

The Child Safety Service delivers the statutory response to child safety and wellbeing concerns. It works to preserve families, facilitates out of home care for children unable to remain in their parents’ care, supports reunification, and manages adoption, transfer of guardianship and transition to independent services. The Child Safety Service incorporates the Strong Families, Safe Kids Advice and Referral Line, the new state-wide contact for child safety and wellbeing concerns.

Strategic Youth Services covers community and custodial youth justice services for children and young people sentenced by the courts to secure detention (Ashley Youth Detention Centre) or community supervision as a result of offending behaviour. Strategic Youth Services also includes counselling and support services for children, young people and adults who have experienced family violence, and the Communities Tasmania’s staffing for the Safe Families Coordination Unit.

Program Support, Learning and Development provides planning and program support, performance monitoring and evaluation, quality improvement and workforce development, and business administration services across CYS.

The Office of the Deputy Secretary provides strategic direction and business planning, organisational improvement and oversight, risk management and stakeholder management.

CYS also contracts and works closely with a number of organisations to deliver specific services in the community.

OUR ACHIEVEMENTS

Strong Families, Safe Kids Advice and Referral Line

The Strong Families, Safe Kids Advice and Referral Line commenced on 3 December 2018. This new service provides a ‘single front door’ contact point for child safety and wellbeing concerns, enabling earlier intervention services for children, young people and families based on their need.

New procedures and data systems were developed for the service, a significant training program rolled out and contracts were set up with several non-government partners. The state-wide service consists of 31 Government

employees, 15 employees from Mission Australia and Baptcare, and 10 Community Liaison Officers who provide support.

Since commencement, there have been approximately 7 800 contacts to the Advice and Referral Line (as at 30 June 2019).

A discussion paper was released for consultation in early 2019, outlining the plan and strategy for the next stage of the Child Safety Service redesign. Consultations were completed for staff and non-government-organisations (NGOs), with government stakeholders, young people, families and carers completed in mid-2019. The consultation feedback will inform the new of Child Safety Service model and approach.

Vulnerable Unborn Babies and Infants Strategy

A new Vulnerable Babies and Infants Strategy was developed in October 2018 in response to a number of coronial enquiries and Serious Event Review Team recommendations focussing on the safety and wellbeing of unborn babies and infants aged 0 to 1 years. Twenty-one of the 30 priority actions in the plan were completed in 2018-19, including:

• Implementation of the Strong Families, Safe Kids Advice and Referral Line

• Delivery of a new Risk Safety and Assessment training package to all child safety staff

• Evaluation of Intensive Family Engagement Services and proposed revised service delivery model

• Completion of audits into unborn baby alerts

• Convening of a cross-agency forum relating to safe sleeping to revise policies and procedures

• Identification of interventions to reduce unsafe infant sleeping

Youth at risk

After launching the Tasmanian Youth at Risk Strategy in 2017, Communities Tasmania has undertaken significant implementation work in 2018-19, with 20 of the 34 actions commenced and an additional nine actions completed. Achievements in 2018-19 included:

• Developing and publishing a wellbeing assessment tool which can identify


children and young people showing signs of risk at the earliest opportunity.

• Developing and releasing an online referral map (service directory), which provides clear pathways and referral options for young people.

• Developing and publishing Youth Matter – a practical guide to increase youth participation and engagement in Tasmania.

• Piloting the Lead Coordination Service for young people with multiple and complex needs.

Key priority areas for the next 12 months include considering issues associated with youth homelessness, mental health, youth engagement in education and youth justice.

Ashley Youth Detention Centre redesign

The Tasmanian Government committed $7.3 million for a major redesign and upgrade of Ashley Youth Detention Centre (AYDC) to make it fit for purpose and continue to improve the model of care, as part of a modern, integrated state-wide therapeutic youth justice model.

The significant work already achieved via the Ashley Change Management Program is continuing, with a focus on culture and leadership to support a model of trauma-informed care of young people in detention.

Extension of Care Support Program

The Extension of Care Support Program was implemented to better support young people transitioning from care, with ongoing payments made to foster carers, kinship carers and third party guardians of young people aged 18-21 years who choose to remain in care while completing Year 12 or equivalent studies.

Learning Incentive Allowance Program

The 2018 Learning Incentive Allowance program was developed and implemented, providing financial incentives to carers and young people to encourage completion of Year 12 or equivalent

qualifications. As at the end of June 2019, 16 young people and 11 carers had completed applications.

Additional Child Safety Officers

Twenty-five additional full time equivalent (FTE) positions were filled in the Child Safety Service during 2018-19. Staff were actively involved in identifying pressure points, which, along with analysis of caseloads and other data, guided the functions and locations of the new positions. These additional positions will provide better support and services to those in our community who most need it, ensuring better outcomes for children.

Permanency of placement

Consultation has now commenced on a framework for permanency of placement for transfer of guardianship and adoption, including working with the Family Court to better understand the logistics, to help improve processes around ensuring children have stability in their placements.

OUR FUTURE PRIORITIES

In 2019-20, CYS will work towards five goals and accompanying priority actions to continue to improve outcomes for children, families and communities:

Putting children, young people and their families at the centre of what we do

CYS will continue to design and implement a new model for the delivery of child safety and wellbeing services to achieve better outcomes for children, young people and their families through a more contemporary and effective system. We will deliver the Case and Care Planning Project giving children and young people greater involvement in their care plans. We will deliver the Transition to Independence Program election commitment to extend the leaving care age from 18 to 21, better supporting young people leaving care.


Attracting, develop and retain the best people and create a culture where they can be their best

CYS will fully implement the PASE Supervision Model focussing on reflection, learning and support to ensure we have a safe and high-performing organisation. We will consolidate and release a Learning Pathways Map for each business area ensuring staff are engaged, learning and developing. CYS will contribute to the development of a coordinated recruitment process and relaunching the CYS Staff Recruitment and Retention Strategy to deliver a more effectively sourced, supported, stable, safe and sustainable workforce.

Strengthening our systems and tools to support a high performing organisation

CYS will develop Regional Assets Plans to ensure fit-for-purpose cost-effective accommodation needs are addressed. We will develop a business case for a technology driven more effective and efficient CYS workforce. We will establish the Out of Home Care State-wide Portfolio to provide greater consistency in practice and approach and increase safety and oversight.

Building alliances and partnerships to improve the lives of children, young people and their families

CYS will partner with Housing, Disability and Community Services to develop options for older children with high needs transitioning to independent living and for the availability of housing, improving equity and access and allowing more children to stay or return to their families. We will partner with Aboriginal organisations, developing a proposal for successful transitions from intensive placements, creating and recruiting Aboriginal Liaison positions, and developing a workplan for implementation of ‘Active Efforts’ to embed the Aboriginal and Torres Strait Islander Child Placement Principle.

Designing and delivering relevant high-quality interventions/services that comply with agreed standards

To improve opportunities and outcomes for young people who enter the youth justice system, CYS will continue to develop and implement a new model of care, reflecting a more therapeutic approach and a more effective operational model for AYDC.

We will operationalise the Child and Youth Wellbeing Framework through an implementation plan across CYS and develop an implementation plan and business case for putting the Family Based Care Model into practice.

The Advice and Referral Line (ARL) was engaged in ongoing conversations regarding 13-year-old *Sally who was engaging in risk-taking behaviours. ARL had an initial conversation with staff at the Department of Education who were concerned about Sally’s wellbeing and her parent’s capacity to meet her needs. Community Liaison Officers were involved in the development of a support plan for Sally, with input from Sally, her family and support services. ARL and Community Liaison Officers remained available to offer ongoing support to this care team when circumstances changed, or incidents occurred. Through this supportive approach the care team wasable to flexibly respond to Sally’s needs as they evolved. Sally is now in a stable home with her extended family, with a support network around her. The ARL service remains available to the care team should the need arise.


* Katherine and her family were referred to the Intensive Family Engagement Service (IFES) program by the Child Safety Service following repeated notifications concerning her children and the fact they were not attending school. Katherine is a single mother with two teenage sons and two daughters — one a teenager and one newborn. Katherine had been feeling alienated from her family and community and felt she had too much to cope with on her own. She feels very positive about her time with IFES:

“... it was really good, I really enjoyed it, I moved forward with my life.”

Katherine says her IFES worker helped her establish a better relationship with her children’s school, supported the establishment of before-school routines, and helped create a more positive home environment. The IFES worker also developed connections for the family that have endured after the conclusion of the IFES intervention — for example, her children are attending classes at their local Police Citizens Youth Club, and the family has transitioned back to lower support services. Katherine says that IFES helped her to see she is in control of her life and to regulate her emotions more effectively.

“... workers aren’t judging me, they’re working with me.”

CHILD ADVOCATE

The position of an independent Child Advocate for children in out of home care was created in early 2018 with the purpose to provide advocacy services for, and on behalf of, all children and young people in the care of the Secretary, Communities Tasmania, to ensure that children in out of home care have a voice in decisions that affect them.

The Child Advocate has been working to fully define the role as well as responding to the various systematic or operational requirements of the role.

The Child Advocate reports to the Secretary, Communities Tasmania and the Minister, Human Services.

The majority of enquiries come from direct internal enquiries within CYS , with a total of 31 per cent of referrals made from frontline Child Safety staff. Often these referrals relate to the need for staff to access support in privileging the needs of the child or young person, being able to prioritise these over the constraints experienced by other competing agendas (for e.g. legal, administrative, parents, caregivers), and identifying creative solutions to meet their needs amid systemic service delivery gaps - such as a full

continuum of care options within Out of Home Care (OoHC). Remaining areas that identify an even mix of referrals originate in enquiries raised by parent/extended family (18 per cent); caregivers (18 per cent); and service providers (19 per cent).

Overwhelmingly, the first point of contact in accessing the support of the Child Advocate has been via email, with 51.5 per cent of all enquiries via this pathway. Second to this, the Office of the Commissioner for Children and Young People have referred 20 per cent of the overall enquiries. A further 19 per cent have made contact via phone, and 9.5 per cent of referrals have been in person when meeting the Child Advocate.

There are considerable differences in the intensity of response and input that is required of the Child Advocate. The majority of matters often don’t necessitate direct consultation with the child, as the advocacy required is often privileging that which the child has already been articulating to key adults and supporting the ways for the Care Team to honour that. Additionally, the approach of the Child Advocate often relates to garnering and encouraging different understanding and child-centred responses amongst the child’s Care Team.


Charlie and Lola made disclosures to their Child Safety Officer at the end of the school day that really necessitated their removal from their foster family of nine years. They did not want to return home, as they did not feel safe to do so. An amazing foster family was identified through their school community and they are thriving, loving their new home and family. For Charlie though, who is nine years old, he has always lived with his former carers. Although he loves where he now lives and has been clear in stating that he wants to stay with his sister, he is really missing his former foster parents. He didn’t get to say goodbye and doesn’t want to. He wants to see them, but all the adults feel this would be ’opening Pandora’s box’ and potentially destabilise the huge progress realised in their new placement. Perhaps there is a way for his former foster parents to stay in his life, but no longer play the mum and dad role anymore? After meeting with Charlie, and hearing how much Charlie wanted to see them, the Child Advocate has worked with the adults, acknowledging that whilst it provokes anxiety, if collectively planned appropriately and carefully, including Charlie in the planning and conversations, that he can maintain a link with his former foster parents in supported ways.

Each particular referral that the Child Advocate has had a degree of involvement in is unique in each of their own distinctive ways. The outcomes

achieved for each are therefore difficult to categorise in an ordered manner.


Communities, Sport and RecreationOUR PURPOSE Communities, Sport and Recreation (CSR) develops and supports the opportunity for all Tasmanians to participate in community life, sport and recreation. Our focus is on developing and supporting an inclusive sport and recreation sector, including the development of Tasmania’s high performance athletes. Our vision is for strong, active and inclusive communities.

We lead whole-of-government policy initiatives and programs to enhance and strengthen cultural, economic, and social outcomes for the Tasmanian community. This includes delivering a number of whole-of-government programs aimed at increasing opportunities for participation and social inclusion, as well as programs to address participation barriers for specific population groups.

We also deliver a wide range of grants to build community capacity to meet the communities, sport and recreation needs of Tasmanians and

use our grants expertise to support achievement of Government health and wellbeing priorities.

A key role of CSR is to provide high quality policy advice to the Tasmanian Government in relation to community participation, physical activity, sport and recreation for identified population groups.

The Division supports a number of peak bodies and advisory structures that act as a link between particular communities and Government and ensure that Government policy considers the views of the Tasmanian community.


OUR TEAM

The Sport and Recreation Branch supports community participation in sport, recreation and physical activity, by developing and supporting a vibrant and inclusive sport and recreation sector. The branch develops the capacity of sport and recreation organisations through improving governance, planning and structural change, leading the development of appropriate policies, procedures and programs and facilitating training, education and forums to address the sector’s needs.

The Tasmanian Institute of Sport (TIS) delivers high quality services and support that maximises the sporting potential of talented athletes through providing leadership and quality athlete and coaching services to assist them to compete successfully on the national and international sporting stage at events such as the Olympic and Paralympic Games, Commonwealth Games and World Championships. The TIS is located at the Silverdome in Launceston and at the Technopark facility in Glenorchy.

The Grants, Sport and Recreation Infrastructure Branch administers a range of grant programs and supports two independent statutory bodies - the Anzac Day Trust and the Tasmanian Community Fund. The Branch also provides advice to the Government, sporting organisations, local government and regional development authorities on the development of appropriate sport and recreation infrastructure.

The Office of Aboriginal Affairs provides advice to the Government on issues affecting Aboriginal people and is responsible for high-level consultation with Tasmania's Aboriginal and Torres Strait Islander population. The Office works in partnership with community organisations and government departments to promote knowledge, leadership and understanding about Tasmania’s Aboriginal people and their cultural heritage, and to increase social, cultural and economic outcomes.

The Policy and Programs Branch leads the development and implementation of whole-of-government policies, frameworks and strategies, and programs for identified population groups including: women; people with disability; carers; older people; multicultural communities; the lesbian, gay, bisexual, transgender and intersex (LGBTI) community; volunteers; Men’s Sheds

and veterans. The Policy and Programs Branch delivers programs to improve access to and involvement in the community through the delivery of the:

• Seniors Card;

• Companion Card; and

• Tasmanian Concessions Guide.

OUR ACHIEVEMENTS

Aboriginal and Dual Naming Policy

The Government released its revised Aboriginal and Dual Naming Policy on 5 June 2019.

Assigning Aboriginal and Dual names is an important step in progressing reconciliation between Aboriginal and non-Aboriginal people in Tasmania. Through the Policy, the Government acknowledges the history and continued existence of the Tasmanian Aboriginal people and their connections to the Tasmanian landscape.

The revised Policy incorporates a number of improvements addressing issues raised by stakeholders during the two-year consultation and review process. These include:

• expanding the range of parties who can propose Aboriginal and dual names;

• clarifying the requirements for authenticating Aboriginal and dual names, including the creation of an independent expert reference group to support the Nomenclature Board;

• ensuring local Aboriginal groups are consulted regarding place name nominations in their area;

• allowing for the consideration and use of multiple Tasmanian Aboriginal languages for place naming;

• improving and clarifying consultation requirements under the Policy; and

• ensuring there is a focus on replacing existing place names that may be offensive to Aboriginal people.

The Policy applies only to naming Tasmanian features and places in accordance with the Survey Coordination Act 1944, and not to infrastructure such as roads, highways, bridges, and communication towers.


Responsibility for officially attaching names to geographical features and places lies with the Nomenclature Board, based in the Department of Primary Industries, Parks, Water and Environment (DPIPWE).

Investing in the well-being of diverse communities

CSR worked with a wide range of community stakeholders to release a number of whole-of-government policies and actions plans to address the needs of Tasmania’s many diverse communities, and to enhance access and participation.

We developed the Financial Security Action Plan for Women 2018-2021 which was released in September 2018. The Plan is the first in a series of Action Plans to be delivered under the Tasmanian Women’s Strategy 2018- 2021. The Plan aims to increase the financial security and independence of women and girls across Tasmania. It was informed by submissions and survey responses made to the Government in the development of the Strategy, as well as research findings and statistical data on women’s financial security.

We developed Strong Liveable Communities: Tasmania’s Active Ageing Plan Implementation Strategy 2019-2020 which was released in June 2019. This Strategy supports the Government’s Tasmania’s Active Ageing Plan 2017-2022 and contains four priority action areas that take account the needs of people over 50 as identified through consultations. These action areas are: health; lifelong learning; participation; and security.

In June 2019, the Government released Our Multicultural Island: Tasmania’s Multicultural Policy and Action Plan 2019-2022. Between October and December 2018, we invited the community to have a say on how well multiculturalism was working in Tasmania, and how we might strengthen multiculturalism to build a more inclusive Tasmania. As part of the consultation process, community input was received through regional forums (held in Hobart, Launceston, Burnie and Devonport), group forums,

submissions and an online survey. Government agencies have incorporated the public consultation feedback in their respective actions under the Action Plan.

We provided secretariat and policy support to a number of government advisory groups including the:

• Premier’s Disability Advisory Council;

• Tasmanian Women’s Council;

• Veterans’ Reference Group;

• LGBTI Whole-of-Government Reference Group;

• Carers Issues Reference Group; and

• Multicultural Consultative Reference Group.

Supporting our peak bodies

We supported a number of peak bodies to represent the interests of diverse communities.

From 2018-19, the Tasmanian Government increased core funding to existing peaks, and elevated three other organisations to peak body status. We worked with peak bodies across a range of issues, including governance, strategic planning, board evaluation, key performance measures, project scoping, management and reporting.

In 2018-19 funded peak bodies are:

• Carers Tasmania;

• Council on the Ageing Tasmania (COTA);

• Multicultural Council of Tasmania;

• Returned Services League of Tasmania;

• Tasmanian Regional Aboriginal Communities Alliance (TRACA);

• Tasmanian Men’s Shed Association;

• Youth Network of Tasmania; and

• Volunteering Tasmania.

CSR also provides administrative support to the Tasmanian Community Fund which is separately accountable and reports directly to Parliament.


Levelling the Playing Field

CSR administered the first year of the two-year Levelling the Playing Field program, providing funding of over $4.6 million to 21 projects to upgrade or develop functional and inclusive change rooms and sporting facilities for women and girls. In the first year, the focus of the program was on grounds and facilities used for AFL and cricket, given women and girls increased participation in these sports. Thirty five expressions of interest were received for the 2019-20 program which opened 25 March 2019 and closed 2 May 2019.

Increasing the capacity of the sport and recreation sector

In 2018-19 a significant amount of work was done to increase the capacity of the sport and recreation sector. During the last financial year we accredited 55 new Member Protection Information Officers and attracted 168 people to club financial management sessions across three regions.

We were able to assist Basketball Tasmania, New Horizons and Triathlon Tasmania with facilitated strategic planning services and conducted a structural review of Rowing Tasmania.

The Women on State Sporting Organisations Boards Report was published and we worked

with Equestrian Tasmania, Athletics Tasmania and New Horizons to improve board skills and diversity.

We administered the Tasmanian Standards for Boxing and Combat Sports, held two Disability Sport and Active Recreation Network Forums, one Get Moving Tasmania Local Government Forum, five coaching forums and provided Tasmanian input into Sport Australia’s review of national governance principles.

Veterans' Reference Group

The Veterans' Reference Group was formed on 14 December 2018 to provide information and insights on issues relating to veterans and ex-servicemen and women. The Reference Group comprises representatives from across the State and from a variety of backgrounds, including family members of veterans and has met twice, on 20 February 2019 and 20 June 2019.

Centenary of Armistice

2018 marked the end of the Centenary of Anzac commemorations. The Government supported communities around Tasmania as they commemorated the Centenary of Armistice with dinners, concerts, parades and exhibitions.



New indoor multi-sports facility in Glenorchy

CSR is working with stakeholders to progress project planning for the development of a new indoor multi-sports facility in Glenorchy. This facility will provide fit-for-purpose, multi-use courts and sports facilities that meet current and future demands of community participants.

State-wide Strategy for Sport and Recreation facilities

CSR will commence development of a State-wide Strategy for Sport and Recreation Facilities in 2019-20. The Strategy will inform future sport and recreation facility investment decisions and will be aimed to increase the opportunity for Tasmanians to engage in physical activity.

CSR will consult broadly with local government, facility owners and key sector stakeholders on the current and future infrastructure needs of the Tasmanian population during the development of the Strategy.

Women’s Health and Well-being Action Plan

Work has commenced on the preparation of a Women’s Health and Well-being Action Plan, as the second plan to be released under the Tasmanian Women’s Strategy 2018-2021.

Multicultural Communities- addressing regional settlement challenges

Australian Government skilled migration policies have changed with the introduction of new visas that encourage migrants to settle in regional areas. CSR works with the Australian Government, other Tasmanian Government agencies, educational providers, and the community and business sectors, to address the challenges this raises for migrants and refugees. The immediate focus of this work will be on improving pathways to education and training and supporting educational, economic and community participation for young refugees.

“Multiculturalism means an inclusive society respecting personal and shared values in life and work while advancing fairness, care and economic well-being for all.” Participant, Online Multicultural Survey


Closing the Gap

Priorities for the Office of Aboriginal Affairs in 2019-20 will be working with other jurisdiction and all Tasmanian Aboriginal organisations to refresh The Closing the Gap; and reviewing the model for returning land to the Aboriginal community

Support Tasmanian athletes

A key priority for the TIS heading into 2020 will be supporting Tasmania’s athletes to achieve selection and perform at their best at the 2020 Tokyo Olympic and Paralympic Games.

Ticket to Play

CSR developed and implemented the sports voucher program, Ticket to Play as a pilot in 2018-19 to assist young people to meet the costs of participation in sport and other activities. The Program provides vouchers of up to $100 in

value towards the cost of sporting club, Scouts, Guides or Cadets membership for children aged 5 to 17 listed on valid Centrelink Health Care or Pensioner Concession Cards or in Out of Home Care. There were 5 200 vouchers issued between the launch of the Program on 7 February 2019 and 30 June 2019.

Veterans Active Recreation Program

The Government has committed $225 000 to establish a partnership with the Parks and Wildlife Service to provide an active recreation program for returned service personnel. The program will involve ex-serving personnel in the development and delivery of the program, with a focus on mental health and wellbeing and links to pathways to training and employment in outdoor education and/or eco-tourism. CSR has aligned the development of the program with the establishment of the new Veterans’ Reference Group.

“Thank you so much for helping with Ticket to Play for Sky. She LOVED soccer with her best friend and her brother!” Grant recipient


Housing, Disabilities and Community ServicesOUR PURPOSE Housing, Disability and Community Services (HDCS) is committed to delivering effective services to support the Tasmanian community at times of vulnerability through a range of programs in the areas of affordable housing, disability, elder abuse, family support, gambling and sexual assault.

OUR TEAM

HDCS provides a range of services to assist vulnerable people to participate in the community. HDCS continues to work with stakeholders both within the Agency and outside to improve the access and effectiveness of services. The Group is made up of seven branches. They are:

Deputy Secretary, HDCS has primary responsibility for setting the directions of the organisation and matching the purpose with operational requirements.

Program Support Unit provides a co-ordinated support role to HDCS business units and the Department’s corporate groups. The primary functions of the unit focus on data, information and business systems, executive, business and administrative support including Ministerial and corporate liaison.

Housing Programs provides planning, purchasing and performance functions to ensure that the overall housing system design is effective, and programs are operating both effectively and efficiently. This includes housing and performance advice, program development and program delivery.


Portfolio and Supply delivers all asset management functions, including asset planning, maintenance, capital upgrading, construction, procurement, project management, upgrade and construction initiatives. It also delivers the Streets Ahead incentive program, HomeShare and open market sales.

Tenancy Services is responsible for the tenancy management for Tasmania’s public housing which includes allocations, property inspections, lease renewals, rent arrears management and tenancy issues. Tenancy Services also manages the contracts and relationships with Better Housing Futures providers.

Disability Services Policy and Programs (DSPP) is committed to a Tasmanian community that is inclusive, compassionate and responsive to the needs of its people. In order to achieve this DSPP is focussed on supporting individuals, families and carers to have greater control over matters that directly affect their lives and circumstances, promoting health and wellbeing, developing responsive and sustainable services and creating collaborative partnerships.

Community Services Policy and Programs (CSPP) has oversight of the provision of effective services and support to children, young people, individuals and families at times of vulnerability through a range of programs. This includes the commissioning of client support services, building capacity across government and the community, improve outcomes, and overseeing whole of government strategies.

Each branch has functions that assist in the delivery of the strategic and operational activities of the Business Unit. Broadly, all branches have responsibility for ensuring positive relationship management with internal and external stakeholders, and for undertaking key projects.

Whilse the National Disability Insurance Scheme (NDIS) and the Tasmania’s Affordable Housing Strategy 2015-2025 are the key focus of the Division’s efforts, HDCS continues to operate a range of services and functions provided either directly or with the assistance of our key non-government sector partners. These include the provision of services through neighbourhood houses, Gateway Services, Housing Connect, disability support providers and social housing organisations, including Housing Tasmania. These services bring much needed support

and assistance to people who otherwise would not achieve a satisfactory standard of living. The Division has also developed the Housing Management System that provides great benefits both for HDCS, as well as our tenants.

OUR ACHIEVEMENTS

Tasmania’s Affordable Housing Action Plan 2015-2019 - Action Plan 1

Tasmania’s Affordable Housing Strategy 2015-2025 is the Government’s comprehensive approach to prevent, intervene early and respond rapidly to housing stress and homelessness.

The Strategy provides a ten year plan for housing reform and investment. Specific actions and initiatives are set out in the Tasmania’s Affordable Housing Action Plan 2015-2019 (Action Plan 1) and the second stage Tasmania’s Affordable Housing Action Plan 2019-2023 (Action Plan 2). A third action plan will be developed for the final years of the Strategy.

Under Action Plan 1, performance targets have now been met or exceeded.

• We have assisted a total of 1 605 additional households into safe, secure accommodation that meets their needs, delivered a total of 984 affordable lots and homes and significantly boosted our supply of social housing, with 453 new dwellings delivered.

• Land is being released with capacity to supply around 670 lots, of which 291 were released under Action Plan 1.

• More social housing is being constructed to supply 1 051 new homes, of which 453 new homes have been completed as at 30 June 2019. Additionally, 104 refurbished homes have been done under Action Plan 1.

• More homeless accommodation is being constructed to supply 121 units, of which 33 have been completed under Action Plan 1.

• New supply is generated under the HomeShare program. Under both Action Plans, 389 new homes will be supplied under HomeShare, of which 174 have been completed under Action Plan 1.

• New supported accommodation is being constructed to supply 169 units, of which 79 have been completed under Action Plan 1.


Additional $5 million Emergency Support Fund

The Government allocated an additional $5 million towards providing immediate actions to reduce homelessness and housing stress across Tasmania. This new funding was to specifically support the actions agreed after consultation with the social services sector. This additional support was designed to help those Tasmanians most in need and facing homelessness during winter with additional places secured by:

1. Working with the tourism and hospitality sector to secure more emergency accommodation options for people in immediate need.

2. Expanding the capacity of existing shelters providing support for people with more complex needs by installing pre-fabricated units alongside their existing facilities.

This new funding allocation enabled more emergency and short-term accommodation to bridge the gap in demand for housing while new housing stock was being built across the state under our Affordable Housing Strategy and Action Plans.

National Disability Insurance Scheme Transition

As at 30 June 2019, 6 831 participants are now being supported by the NDIS in Tasmania, including children in the Early Childhood Early Intervention (ECEI) program.

1 525 service providers have registered to provide NDIS supports in Tasmania.

The Tasmanian government is continuing to work with the National Disability Insurance Agency (NDIA) to encourage new entrants to the Scheme.

Elder Abuse Prevention Program

In June 2019 the Tasmanian Government launched the Respect and Protect Older Tasmanians: Tasmania’s Elder Abuse Prevention Strategy 2019-2022. The strategy focuses on safeguarding and working across government and within the community to determine the best way we can protect older Tasmanians from abuse and harm.

This Strategy will raise awareness and help to prevent elder abuse from happening in Tasmania and supports new and contemporary ways to

inform and educate and provide services that respond to elder abuse.

Joined Up Human Services

The Joined Up Human Services Project continued to deliver the Lead Coordination Service (LCS) trial in 2018-19. This was made possible with an additional $1 million in funding provided through the 2018-19 State Budget.

The LCS aims to improve outcomes for clients who have complex needs by encouraging collaboration within the service system. Over time, this will reduce demand for acute service responses. The LCS builds trusted relationships between Lead Coordinators and clients to develop goal pathways that are client-centred and based on the specific aspirations and needs of the client. It streamlines multi-service responses.

The University of Tasmania evaluated the service in early 2019 and found the LCS model is improving people’s lives. The LCS resulted in less stress, improved mental state and self-esteem, and more time for the client to spend focusing on themselves and their family. Clients developed strong feelings of self-Agency and resilience during their time within – and after – the service. Clients reported improvements in happiness, coping, relationships, self-worth and mental health.

LCS is designed to be a highly accountable service. This accountability is opening up new opportunities for LCS to integrate with other services such as youth and family services, mental health, housing and child safety services, where the LCS intensity of service response, flexibility and whole of life-domain approach is being used to define and pilot new methods for effecting outcomes for people with complex needs.


Tasmania’s Affordable Housing Action Plan 2019-2023 - Action Plan 2

The Tasmanian Government is working hard to reduce homelessness and to ease the housing stress across Tasmania. Action Plan 2 will deliver new supply, improve access to affordable homes and to deliver more responsive services to Tasmanians seeking housing assistance. This will be achieved through 19 actions and 51 specific initiatives.

Action Plan 2 will deliver a number of targets across the following three strategic elements:


New supply

• More land release with capacity to supply around 380 new home lots that will deliver new affordable homes.

• The review and introduction of new planning policies and mechanisms to increase the supply of affordable homes.

• Construction of 607 social housing dwellings in areas of high demand with universal design features to flexibly meet housing needs.

• Provision of 88 homelessness accommodation rooms and units to address increasing demand for homeless Tasmanians in immediate need of accommodation.

Improved access

• Assist 287 households into affordable home ownership under the HomeShare or Streets Ahead schemes. This includes new supply of 215 homes.

• Assist 200 low income households into long term, affordable private rentals.

• Assist 418 people or families into supported accommodation. This includes new supply of 137 homes.

Responsive services

• Continuous improvement of Housing Connect and homelessness services for Tasmanians seeking housing services.

• Better housing data to forecast changing demand for services, as well as better reporting to the community on the demand and supply changes in the market.

Mellisa and Callum have four children under the age of nine. They have been trying to buy a house for 11 years but were having difficulty saving enough for a deposit. After being alerted to the Tasmanian Government’s HomeShare scheme they were able to build a five-bedroom home.


The future focus of the Respect and Protect Older Tasmanians: Tasmania’s Elder Abuse Prevention Strategy 2019-2022 will be on safeguarding and working across government and the community to determine the best way we can protect older Tasmanians from abuse and harm.

Over the next four years the Tasmanian Government will identify and respond to new priorities, review progress and develop new actions and consolidate the strengthen existing activities. This will include key findings from any enquiries and research completed during this timeframe.

*Mary is a young woman who moved into Trinity Hill in May of this year. Mary came from a difficult background and had been couch surfing with family and friends for a substantial period of time. Mary had found herself in unsafe situations and was worried for her safety. Since moving into Trinity Hill, Mary has been very determined to improve her situation in life. Mary undertook a training course and as a result secured a job, which is something she was very keen to achieve. Even once she started to work she still found time to volunteer with children in her local indigenous community. In December this year Mary’s efforts were formally recognised when she was given a Special Commendation in the Tasmanian Human Rights Awards in the Youth Category and attended a morning tea at Government House. The Commendation was given for her Volunteering work with Aboriginal Children and work within the Aboriginal Community. She attended a National Indigenous Youth Conference on the mainland earlier this year and was also commended for her work relating to Gender Equity.

Jane first presented to Housing Connect in December 2013. Jane had completed grade ten at a regional high school and was looking for housing assistance so she could continue her college education in Hobart. At that time, she was still living a long way out of town and public transport was sporadic.

Janewas offered a one-bedroom unit through Colony 47 as all of the College Units allocated were fully occupied. Unfortunately, the Complex Jane moved into had a high number of older people living in it and Jane was unfairly targeted by the residents for anti-social behaviour. Working alongside Housing Tasmania, who agreed that Jane was being unfairly targeted, a transfer was arranged for Jane to a more suitable complex.

While residing in her new home, Jane was supported to build her independent living skills, complete Year 11 and a Certificate III in Child Care Studies at TAFE. Jane gained casual work at a local child care centre and soon after secured permanent full-time work. During this time Jane’s boyfriend moved into the unit and was also supported by Housing Connect to build his independent living skills and finish his education.

Jane and her boyfriend were able to successfully complete their education, gain permanent employment and maintain their tenancy to a very high standard. They no longer required the support of Housing Connect. Jane’s support worker put a request through to Housing Tasmania to transition Jane and her boyfriend over to a General Tenancy, however as they were both working and receiving decent wages, they were over the income threshold for public housing and no longer eligible. Jane and her boyfriend began looking at private rental but were unable to find anything suitable to their needs.

The couple then decided that the best option for them was to look at buying a home. They have purchased a block of land and are currently in the process building their own home.


Starting Point Neighbourhood House

In Launceston, Mike Monticchio from Starting Point Neighbourhood House in Ravenswood is doing his bit to make his local community that little bit stronger with a practical programme that is really engaging people. He wondered why the kids were not playing basketball at the local courts and he discovered it was because they didn’t have any basketballs. He asked a people in the local community to donate any basketballs they had and has subsequently been putting them in bins beside the hoops at the local courts. The kids are now regularly playing basketball again. The graffiti rate has gone down and one teenager has reported that access to the activity has prompted him to give up smoking. Everytime he gets the urge now, he goes down and shoots some hoops. This is a strong example of how young people like Mike can show leadership and make huge differences through showing pride in their local community.

Ravenswood sign (case study by Michael Monticchio)

The Ravenswood Sign is a thirteen metre “Hollywood-esque” sign doused in community art. Each individual letter of the sign is uniquely different. A total of 9 different organisations located in Ravenswood designed the letters. An estimated total of 150 people came together to make the Ravenswood Sign. The Ravenswood sign is beloved by the community.

The original idea was sparked by community member of Ravenswood and President of Starting Point Neighbourhood House, Sharron Leonard. She has been living in Ravenswood most of her life and wanted a sign in Ravenswood. The idea took new heights when Fakington (Fakie) Wilde, a local community artist, got involved. Fakie had the idea to make a massive Hollywood sign, and inside the sign was going to be art by the community. Then Michael Monticchio came into the picture. His job was to liaise with the organisations to decorate the letters. Once the massive paper letters were decorated, they were submitted to JT Designs, a print shop in Launceston. JT Designs used Photoshop to brighten the colours and put the designs onto big aluminium letters. Once they were printed, the Men’s and Community Shed cemented the sign into the ground.

Due to all the organisations being involved (Ravenswood Primary School, NEWPIN,

Ravenswood Health Centre, Northern Support School, Zions Hill Church, Starting Point Neighbourhood House, Child and Family Centre, Over 50’s Club, and the Discovery Centre) the community has looked after the sign. There were a lot of people inside and outside the community that said the sign would not last and it would be knocked down. The exact opposite is true. The sign created a lot of community pride and has not been touched since it was erected. In fact, there have been a couple of occasions where people outside of Ravenswood tried to vandalise the sign, but community children who were at the skate park scared them off to protect the sign.

Many people who have rarely been around Ravenswood use the sign as a landmark. While Michael was trying to catch buses back to Ravenswood, a lady in a Mowbray café told him, “You know you’ll be in Ravenswood when you see a beautiful Ravenswood sign.” She didn’t know Michael or his involvement. He chuckled, said “thank you” and smiled. Ravenswood is a community that is strong with pride and doesn’t deserve the stigma that it has been given over the years. The community has changed a lot over the past five years, and it will continue to change for the better.

The pride and ownership of something valuable to the people has changed. Everyone looks after the sign, and everyone believes the sign is a good thing.

Quotes from the community

“I loved doing the sign, it was so much fun!” – Student at Ravenswood Heights Primary School

“This process has been therapy for me.” – NEWPIN participant

“My girlfriend contributed on the letter “A,” so it was important for me to cement it into the ground and help put the sign up.” – Ravenswood Men’s and Community Shed participant


Our legislation and transparency As detailed in the Administrative Arrangements Order 2019, made under the Administrative Arrangements Act 1990, the Department of Communities Tasmania administers a wide range of legislation.

An Administrative Arrangements Order assigns portfolio responsibility for enactments to Ministers. The Order also assigns responsibility for administration of enactments to particular Departments. As at 30 June 2019, the Department of Communities Tasmania administers four Acts and associated subordinate legislation for the Minister for Aboriginal Affairs, three Acts and associated subordinate legislation

for the Minister for Housing, three Acts and associated subordinate legislation for the Minister for Disability Services and Community Development, seven Acts and associated subordinate legislation for the Minister for Human Services and two Acts and associated subordinate legislation for the Minister for Veterans’ Affairs.


Minister for Aboriginal Affairs

Aboriginal Land Council Elections Act 2004

Aboriginal Lands Act 1995

Native Title (Tasmania) Act 1994

Stolen Generations of Aboriginal Children Act 2006

Minister for Disability Services and Community Development

Disability Services Act 2011

Guide Dogs and Hearing Dogs Act 1967

Tasmanian Community Fund Act 2005

Minister for Housing

Community Housing Providers National Law (Tasmania) Act 2013

Fire Damage Relief Act 1967 - in so far as it relates to the erection of dwellings for renting to eligible persons under the Homes Act 1935 (otherwise see Department of State Growth under the Minister for State Growth)

Homes Act 1935 - except in so far as it relates to the lending of funds for home ownership (see Department of Treasury and Finance under the Treasurer)

Minister for Human Services

Adoption Act 1988

Child Protection (International Measures) Act 2003

Children, Young Persons and Their Families Act 1997

Children, Young Persons and Their Families (Transitional and Savings Provisions) Act 1998

Commissioner for Children and Young People Act 2016

Pensioners (Heating Allowances) Act 1971

Youth Justice Act 1997 - except in so far as it relates to the establishment and operation of the Magistrates Court (Youth Justice Division – see Department of Justice under the Minister for Justice)

Minister for Veterans’ Affairs

Anzac Day Observance Act 1929

Ex-Serviceman’s Badges Act 1967


BILLS TABLED

During 2018-19, the following Bills were introduced into Parliament:

• Community, Health, Human Services and Related Legislation (Miscellaneous Amendments) Bill 2018

• Disability Services Amendment Bill 2019

• Anzac Day Observance Amendment Bill 2018

KEY CHANGES TO LEGISLATION

The key legislative changes involving the Department of Communities Tasmania in 2018-19 are described below, including Bills introduced by the Minister for Health and other legislative projects.

The Community, Health, Human Services and Related Legislation (Miscellaneous Amendments) Act 2018 commenced on 18 June 2019 and made a number of minor amendments to address technical issues in legislation administered by both the Department of Health and Department of Communities Tasmania.

The Anzac Day Observance Amendment Act 2018 amends the Anzac Day Observance Act 1929 and the Shop Trading Hours Act 1984 to bring all legislative provisions relating to activities that can be undertaken on Anzac Day into one Act. The legislation was introduced into Parliament on 3 July 2018 and commenced on 15 October 2018.

The Disability Services Amendment Act 2019 was developed in close cooperation with the Department of Health. This was introduced into Parliament on 9 April 2019 and commenced on 4 July 2019. The amendments implement a review of the Disability Services Act 2011, which the Department of Health led when responsible for that Act in 2017-18.

SUBORDINATE LEGISLATION MADE

• Aboriginal Lands Regulations 2018

• Aboriginal Lands (Settlement Point Cemetery) Regulations 2019

RIGHT TO INFORMATION

We are committed to ensuring we meet our legal obligations to respond to requests for information under the Right to Information Act 2009 (RTI). The Right to Information Act 2009 (the

Act) gives members of the public the right to obtain information contained in the records of the Government and public authorities unless it is exempt from disclosure under the Act. The Act provides a framework for the disclosure of information to the Tasmanian community to improve transparency in government, and encourages routine disclosure of information.

In accordance with the Premier’s June 2015 announcement that RTI decisions made by agencies are to be published, Communities Tasmania listed four decisions on the public disclosure log. This approach ensures a greater level of transparency in the way information is released to the public. The publication of information does not apply to personal information, but provides for the broader release of data, reports and other information of general public interest.

Communities Tasmania, in line with the whole-of-government initiative of releasing the same category of information routinely, continues to provide access to information that includes organisational structures, governance policies, workforce statistics, senior executive service details, telecommunications expenditure and contracts and consultancies information. Furthermore, the Department is planning to implement procedures to encourage active disclosures that will contribute to the reduction in the number of assessed disclosure applications being submitted.

The number of applications for assessed disclosure under the Act for 2018-19 totalled 46. The majority of the applications were requests for personal information.

The number of RTI decisions released on time was 62 per cent. The Department will focus on improving the processing of RTI applications within the statutory timeframe.

The total number of pages considered for assessment was 12 876.

Communities Tasmania offers statewide RTI training for staff. The Department is committed to improving the RTI processes to support applicants participating in this process.


Number of applications

1 Number of applications for assessed disclosure received during 2018-19 46

2 Number of applications for assessed disclosure accepted for decision 41

3 Number of applications for assessed disclosure received not accepted for decision 5

Applications decided

1 Number of applications for assessed disclosure determined 30

1.1 Number of applications accepted during 2018-19 and decided during 2018-19 30

1.2 Number of applications accepted during 2017-18 and decided during 2018-19 0

Outcome of applications

1 Number of determinations where the information applied for was provided in full 13

2Number of determinations where the information applied for was provided in part with the balance refused or claimed as exempt

8

3Number of determinations where all the information applied for was refused or claimed as exempt

9

3.1Number of applications where the information applied for was not in the possession of the public authority

3

Reasons for refusal1

s.5 s.11 s.17

Refusal where information requested was not within the scope of the Act (s.5 – Not official business; s.11 – available at Archives Office and s.17 – Deferred)

3

1 Note: Applications can be refused for one or more of the above reasons.

Exemptions used

s.31 Legal professional privilege 1

s.35 Internal deliberative information 4

s.36 Personal information of a person other than the applicant 9

s.37 Information relating to the business affairs of a third party 3


Withdrawn or transferred

1 Number of applications withdrawn by the applicant 4

2Number of applications for assessed disclosure transferred or part transferred to another public authority

1

Time to make decisions

Number of requests determined within the following timeframes.

1 1 - 20 working days of the application being accepted. 12

2 More than 20 working days of the application being accepted. 18

3Number of requests which took more than 20 working days to decide that involved an extension negotiated under s.15(4)(a). 6

4Number of requests which took more than 20 working days to decide that involved an extension gained through an application to the Ombudsman under s.15(4)(b). 0

5Number of requests which took more than 20 working days to decide that involved consultation with a third party under s.15(5) 0

Reviews Internal reviews

Number of internal reviews were requested in 2018-19 4

Number of internal reviews determined in this 2018-19 4

Number where the original decision was upheld in full 4

External reviews (reviews by the ombudsman)

Number of external reviews requested in 2018-19 1

Number of external reviews determined in 2018-19 0

Consultancies, contracts and tenders

Communities Tasmania ensures procurement is undertaken in accordance with the requirements of the Treasurer's Instructions relating to procurement. This includes ensuring that Tasmanian businesses are given every opportunity to compete for business. It is Communities Tasmania’s policy to support Tasmanian businesses whenever they offer best value for money for the Government.

Table 1 provides a summary of the level of participation by local businesses for contracts, tenders and/or quotations with a value of $50 000 or over (excluding GST).

Tables 2 and 3 provide detailed information on consultancies and other contracts with a value of $50 000 or over (excluding GST).

Table 4 provides a summary of contracts awarded as a result of a direct/limited submission sourcing process approved in accordance with Treasurer’s Instructions 1114 or 1217.

Table 5 provides a summary of contracts where approval to aggregate the procurement was obtained in accordance with Treasurer’s Instructions 1119 and 1225.

There were no contract extensions approved pursuant to Treasurer’s Instruction 1115(2).


Table 1 - Summary of participation by local businesses

Participation by local businesses for contracts, tenders and/or quotation processes with a value of $50 000 or over.

Total number of contracts awarded 18

Total number of contracts awarded to Tasmanian businesses 17

Value of contracts awarded1,2 17 747 246

Value of contracts awarded to Tasmanian businesses1,2 17 691 246

Total number of tenders called and/or quotation processes run 8

Total number of bids and/or written quotations received 56

Total number of bids and/or written quotations received from Tasmanian businesses 53

Notes: 1 In accordance with the requirements of the Treasurer’s Instructions, the values in this table do not include the value of any

options to extend.

2 All values exclude GST.

Table 2 - Consultancies awarded

Consultancies awarded during the 2018-19 financial year with a value of $50 000 or over.

Consultant Name LocationConsultancy Description

Period of Consultancy

Total Value $1

Cumulus Studio Pty Ltd Tas23-25 Goulburn Street - Principal Consultant

20/03/2019 - 11/01/2021 751 725

GHD Pty Ltd TasHuntingfield Masterplan and Civil Design

22/08/2018 - 22/08/2023

1 216 900

Michael Wilkinson Architect Pty Ltd

Tas36 Hobart Road, Kings Meadows - Principal Consultant

03/10/2018 - 30/06/2020 145 970

Philp Lighton Architects Pty Ltd

Tas

Site Redevelopment Program Stages 3 - Contract Superintendent Services

02/01/2019 - 30/06/2020 174 520

Thorpe, Professor David

UKImplementation of 'A Single Front Door' in Tasmania

19/11/2018 - 01/09/2019 56 000

University of Tasmania Tas

Evaluation of Intensive Family Engagement Services Trial - Strong Families, Safe Kids Project

25/07/2018 - 01/03/2019 69 952

Note: 1 All values exclude GST.


Table 3 - Contracts awarded1

Contracts awarded during the 2018-19 financial year with a value of $50 000 or over, excluding consultancy contracts.

Contractor Name Location Contract Description Period of ContractTotal

Value $2

AJR Construct Pty Ltd Tas

Stronger Remote Aboriginal Services – Cape Barren Island Housing Upgrades

22/10/2018 - 31/03/2019 1 274 835

AJR Construct Pty Ltd TasBackyard Units for Young People Initiative

01/10/2018 - 01/10/2020 Option to extend3 01/10/2020 - 01/10/2021

1 147 385

04

Anstie Constructions Pty Ltd

Tas36 Hobart Road Residential Development

09/01/2019 - 21/06/2019 2 331 721

BH Apartments Pty Ltd

Tas

Stronger Remote Aboriginal Services – Flinders Island Housing Upgrades

17/10/2018 - 31/03/2019 1 721 806

De Jong & Sons Constructions Pty Ltd

TasSite Redevelopment Program – Stage 3

06/11/2018 - 31/05/2019 995 250

De Jong & Sons Constructions Pty Ltd


06/11/2018 - 31/05/2019 1 916 680

Gilpins Pty Ltd t/a Gilpin Homes


06/11/2018 - 31/05/2019 414 000

Gilpins Pty Ltd t/a Gilpin Homes


06/11/2018 - 31/05/2019 221 000

Mendelssohn Construction Pty Ltd


06/11/2018 - 31/05/2019 733 316

Mendelssohn Construction Pty Ltd


06/11/2018 - 31/05/2019 491 011

Rossiter Homes & Developments Pty Ltd


06/11/2018 - 31/05/2019 643 020

Total Building and Excavations Pty Ltd

TasBackyard Units for Young People Initiative

23/08/2018 - 23/08/2020 Option to extend3 23/08/2020 - 23/08/2021

3 442 155

1 147 385

Note: 1 Where an overarching procurement process exists (for example Common Use Contracts and Agency Panel arrangements)

individual engagements are not reported.

2 All values exclude GST.

3 In accordance with Treasurer’s Instruction 1111, the period of a contract for reporting purposes includes the value, or estimated value, of any possible options to extend. Where applicable, the principal period of the contract is identified as well as any options to extend; this does not signify that the options have been or will be exercised by Communities Tasmania.

4 A ‘0’ contract value signifies a contract for which a value cannot be estimated, being dependent on future purchasing patterns.


Table 4 - Direct/limited submission sourcing

Treasurer’s Instructions 1114 and 1217 provide the Head of Agency with the discretion, where specified circumstances exist, to approve the direct sourcing or seeking of limited submissions from a supplier or suppliers without the need to seek quotations or call for tenders.

The following table provides details of contracts awarded by Communities Tasmania in 2018-19 as a result of a direct/limited sourcing process approved in accordance with Treasurer’s Instruction 1114 or 1217.

Contractor Name Contract Description Reasons for Approval Total Value $1

Thorpe, Professor David

Implementation of ' A Single Front Door' in Tasmania

The goods or services can be supplied only by a particular supplier

56 000

Note: 1 The value excludes GST.

Table 5 – Disaggregation exemptions

Treasurer’s Instructions 1119(5) and 1225(5) provide the Head of Agency with discretion to approve an exemption from the requirement to disaggregate substantial contracts where the benefits of aggregation clearly outweigh the potential negative impact on local small and medium sized enterprises/the local economy.

The following table provides details of contracts awarded by Communities Tasmania in 2018-19 as a result of such an approval.

Contract DescriptionTotal

Value $1,2

36 Hobart Road Residential Development 2 331 721

Backyard Units for Young People Initiative 5 736 925

Site Redevelopment Program – Stage 3 6 631 177

Stronger Remote Aboriginal Services – Cape Barren Island Housing Upgrades 1 274 835

Stronger Remote Aboriginal Services – Flinders Island Housing Upgrades 1 721 806


Our climate

Communities Tasmania contributes to Tasmania’s greenhouse gas emissions reduction goals through implementation of energy efficiency opportunities.

Departmental emissions

2018-19

Activity Volume tCO2-e

Electricity 1.12 GWh 213

Unleaded Petrol 32.44 kL 75

Diesel Fuel 33.58 kL 91

Air Travel 1.25 million km 983

Total 1 362

Energy efficiency and greenhouse gas emissions reduction activities

In 2018-19, Communities Tasmania:

• Maintained the requirement for Ecologically Sustainable Design requirements in all major capital works projects.

• Participated in the procurement process for “Energy use and greenhouse gas emissions monitoring and reporting software” for Tasmanian Government agencies run by the Tasmanian Climate Change Office (TCCO).

• Working with TCCO on implementation of the “Energy use and greenhouse gas emissions monitoring and reporting software”.


Our performance measuresCHILDREN AND YOUTH SERVICES

Performance Measure1 Unit of Measure

2015-16 Actual

2016-17 Actual

2017-18 Actual

2018-19 Actual

Children Services

Children in notifications (per 1 000 population)2,3,4 Rate 70.4 54.2 53.6 34.9

Average daily children in active transition at Response5 Number 65.3 83.6 38.0 147.8

Investigation outcome determined within 28 days2,6 % 19.9 17.2 16.7 9.0

Children who were the subject of a substantiation during the previous year, who were the subject of a subsequent substantiation within 12 months 2,7

% 24.5 23.8 19.5 18.3

Average daily children in out of home care Number 1112.7 1181.5 1238.3 1294.6

Children with approved case and care plans2 % 55.1 59.7 54.5 64.9

Foster care households with five or more foster children2,8 % 5.6 7.0 6.5 5.1

Children in out of home care who had 3+ non-respite placements in the last 12 months

% 4.0 4.7 4.8 5.9

Children with Children and Young Person’s Program (CHYPP) status ‘referral assessment completed’ as at 30 June9

Number 59 337 67 46

Notes: 1 The continual entry of data means figures above may be retrospectively updated from those previously published.

2 The 2018-19 actuals are preliminary and may differ from figures published in national reports.

3 The population figures used to calculate rates are taken from the most recently released Report on Government Services. The population for these calculations is assumed to be the same as that published for the prior financial year.

4 Due to the implementation of the Advice and Referral Line (ARL) under the Strong Families, Safe Kids Redesign Project, the reporting rules for notifications have been redefined. As such it is not possible to compare 2018 19 actuals for children in notifications with results for previous years.

5 Children in active transition at Response are actively managed while awaiting allocation to a Child Safety Officer for an investigation.

6 Due to the implementation of the ARL, the date of notification is in the process of being redefined. As such the Investigation outcome determined within 28 days is not comparable with previous years.

7 Due to the continual entry of data, the total percentage of re-substantiations is not able to be reliably reported at the time of publication. As such the figure reported for the most recent financial year should be interpreted with caution.

8 Foster care households with five or more foster children is reported as ‘point in time’ as at 30 June of the given financial year.

9 During 2016-17, the ’waitlist’ indicator for children referred to CHYPP was revised to ‘children with status referral assessment completed’ to reflect a change in business process for managing new referrals. From January 2017, a referral assessment was required to be undertaken within three working days of initial contact with the service, and this may result in one of a variety of approaches to supporting children referred. For this reason, figures are not comparable across years.


CUSTODIAL AND COMMUNITY YOUTH JUSTICE


2015-16 Actual

2016-17 Actual

2017-18 Actual

2018-19 Actual

Custodial Youth Justice

Average daily young people in Custodial Youth Justice

Number 9.2 10.7 11.4 11.52

Distinct number of young people in Custodial Youth Justice

Number 33 65 58 622

Community Youth Justice

Average daily young people in Community Youth Justice

Number 227.7 198.1 181.3 211.42

Distinct number of young people in Community Youth Justice

Number 476 410 399 4122

Community Service Orders completed before the statutory expiry date

% 91.7 94.5 83.8 94.4

Youth Justice Community Conferences held within six weeks of receipt of referral for conference

% 84.3 85.3 83.8 82.3

Notes: 1 Given the continual entry of data into information systems and the KIDZ data warehouse, the most recent data reported

above may have been retrospectively updated from that published previously in the Annual Report and other publications.

2 The 2018-19 actuals are preliminary and may differ from figures published in national reports as data for these publications are not submitted until late September each year and figures are not generally published until January of the subsequent year.

CHILDREN SERVICES SYSTEM MANAGEMENT

Performance MeasureUnit of

Measure2015-16 Actual

2016-17 Actual

2017-18 Actual

2018-19 Actual

Planned regular operational performance reviews completed addressing key issues within the remit of Children’s Services

% 100 781 751 1002

Planned quality appraisals completed within relevant timeframes

% 100 100 100 100

Notes: 1 Routine performance reports that were issued for reviews were excluded from this measure for 2016-17 and 2017-18 where

formal meetings were neither planned nor held.

2 2018-19 figures represent the proportion of operational performance reviews provided to the Minister’s Office via the Minister’s Monthly Report.


COMMUNITIES, SPORT AND RECREATION


2016-17 Actual

2017-18 Actual

2018-19 Actual

2018-19 Actual

2019 -20 Target

Percentage of applicants satisfied with public grants program administration

% 97 100 95 97 95

New Seniors Cards issued Number 7,379 7,534 7500 7,895 7500

New Companion Cards issued Number 290 287 220 325 230

New Seniors Card program business partners

Number 91 25 45 44 45

New business, venues and events affiliated with Companion Card program

Number 7 1 5 4 3

Actions on schedule against the milestones and timeframes identified in Resetting the Relationship with the Tasmanian Aboriginal community

% NA 77 80 771 80

Performance of Tasmanian athletes at benchmark international sporting events

Number 22 24 17 20 19

Representation of women on Government boards and committees

% 40 41 43 44.9 2 50

Notes: 1 Performance against this measure was the same for 2018-19 as for 2017-18. This is coincidental, and due to new actions being

added to the Reset agenda at a similar rate to existing actions being completed. As at 30 June 2019, of the 31 items on the Reset agenda at the beginning of the 2018-19 year, 24 were on schedule or had been completed.

2 This figure is current as at 31 March 2019.


HOUSING, DISABILITY AND COMMUNITY SERVICES

Performance MeasureUnit of

Measure2014-15 Actual

2015-16 Actual

2016-17 Actual

2017-18 Actual

2018-19 Actual

Accommodation support clients1 Number 1 222 1 208 1201 1084 5352

Community access clients1 Number 1 074 1 078 1004 961 4972

Supported accommodation waiting list

Number 93 82 58 39 0

Community access waiting list Number 76 88 112 61 0

Notes: 1 The number of Accommodation support clients and Community Access clients represent all clients supported by Disability

Services at any point during the financial year prior to their transition to the NDIS

2 Note these figures are preliminary and will be subject to change due to end of year processes which have not yet been completed

Performance Measure – Housing Tasmania

Unit of Measure

2014-15 Actual

2015-16 Actual

2016-17 Actual

2017-18 Actual

2018-19 Actual

Public Housing occupancy rate1 % 98.3 98.5 98.5 98.8 99.2

Applicants housed2 Number 1 085 926 1 047 901 1 054

New allocations to those in the greatest need

% 80.5 95.5 97.8 98.3 100

Households assisted through Private Rental Assistance

Number 3 666 3 544 3 057 2 839 2 242

Applicants on Housing Register Number 2 771 3 573 2 962 3 216 3 330

Average wait time for people who are housed (year to date)

Weeks NA 43.0 48.7 59.6 67.1

Average time to house Priority applicants (quarterly)

$ 8 665 8 671 9 247 8 783 NA

Net recurrent cost per dwelling3 Days 21.5 20.4 32.6 28.4 20.5

Notes to table: Housing Tasmania data is provided from the Report on Government Services (ROGS) where appropriate. ROGS data for 2018 19 is not yet available, therefore internal data has been provided when it is available. This includes applicants housed into public or community housing from the Housing Register.

Previous data has been updated to reflect 2017-18 dollars. ROGS data for 2018 19 is not yet available. The data provides improved information than was previously available. There is a focus on improving the definitions of this data at a national level.


Department of Communities [email protected]

www.communities.tas.gov.au

D ep ar t men t o f Co mm un i t i e s T a sman i a

Department of

Communities Tasmania Financial Statements

For the year ended 30 June 2019

Table of Contents Table of Contents ............................................................................................................................................ 2

Statement of Certification .............................................................................................................................. 3

Statement of Comprehensive Income for the year ended 30 June 2019 .................................................... 4

Statement of Financial Position as at 30 June 2019....................................................................................... 5

Statement of Cash Flows for the year ended 30 June 2019 .......................................................................... 6

Statement of Changes in Equity for the year ended 30 June 2019 ............................................................... 8

Notes to and forming part of the Financial Statements for the year ended 30 June 2019 ....................... 9

Appendix A – Communities Tasmania Financial Statements | PAGE 3 of 100

Statement of Certification

The accompanying Financial Statements of the Department of Communities Tasmania (the Department)

are in agreement with the relevant accounts and records and have been prepared in compliance with the

Treasurer’s Instructions issued under the provisions of the Financial Management and Audit Act 1990 to

present fairly the financial transactions for the year ended 30 June 2019 and the financial position as at

the end of that year.

At the date of signing, I am not aware of any circumstances which would render the particulars included in

the financial statements misleading or inaccurate.

Michael Pervan Rod Fazackerley Secretary Principal Financial Officer 23 October 2019 23 October 2019

Statement of Comprehensive Income for the year ended 30 June 2019

Notes

2019 Budget $'000

2019 Actual $'000

Continuing operations

Revenue and other income from transactions

Revenue from Government

Appropriation revenue - recurrent 6.1 521 458 483 279

Appropriation revenue - works and services 6.1 47 000 39 313

Other revenue from Government 6.1 0 7 521

Revenue from Special Capital Investment Funds 6.2 1 053 406

Grants 6.3 22 852 20 993

Rental revenue 6.4 0 54 360

Sales of goods and services 6.5 53 709 2 288

Interest 6.6 8 59

Contributions received 6.7 0 40

Other revenue 6.8 24 826 32 392

Total revenue and other income from transactions 670 906 640 651

Expenses from transactions

Employee benefits 7.1 87 208 83 150

Depreciation and amortisation 7.2 24 184 26 626

Supplies and consumables 7.3 122 521 158 590

Grants and subsidies 7.4 410 099 358 189

Finance costs 7.5 7 383 7 596

Other expenses 7.6 2 299 4 124

Total expenses from transactions 653 694 638 275

Net result from transactions (net operating balance) 17 212 2 376

Other economic flows included in net result

Net gain/(loss) on non-financial assets 8.1 11 447 ( 143)

Net actuarial gains/(losses) on superannuation defined benefit plans 10.4 0 ( 966)

Net gain/(loss) on financial instruments and statutory receivables/payables 8.2 0 ( 780)

Other gains/(losses) from other economic flows 8.3 1 140 3 203

Total other economic flows included in net result 12 587 1 314

Net result from continuing operations 29 799 3 690

Other comprehensive income

Items that will not be reclassified subsequently to profit or loss

Changes in property, plant and equipment revaluation surplus 12.1 35 222 372 999

Total other comprehensive income 35 222 372 999

Comprehensive result 65 021 376 689

This Statement of Comprehensive Income should be read in conjunction with the accompanying notes.

Budget information refers to original estimates and has not been subject to audit.

Explanations of material variances between budget and actual outcomes are provided in Note 4.


Statement of Financial Position as at 30 June 2019

Notes

2019 Budget $'000

2019 Actual $'000

Assets

Financial assets

Cash and deposits 13.1 29 282 92 173

Receivables 9.1 4 255 8 967

Loan advances 9.2 0 849

HomeShare investments 9.3 26 936 22 582

Other financial assets 9.4 4 633 331

Non-financial assets

Assets held for sale 9.5 1 523 5 185 Property, plant and equipment 9.6 1 733 227 1 926 976

Intangibles 9.7 2 244 2 830

Other assets 9.8 3 720 57

Total assets 1 805 820 2 059 950

Liabilities

Payables 10.1 11 897 29 123

Interest bearing liabilities 10.2 142 131 157 600


Superannuation 10.4 12 840 7 986

Other liabilities 10.5 4 535 16 089

Total liabilities 193 083 231 813

Net assets 1 612 737 1 828 137

Equity

Reserves 12.1 1 717 278 638 448

Accumulated funds ( 104 541) 1 189 689

Total equity 1 612 737 1 828 137

This Statement of Financial Position should be read in conjunction with the accompanying notes.


Explanations of material variances between budget and actual outcomes are provided in Note 4.

Statement of Cash Flows for the year ended 30 June 2019

Notes

2019 Budget $'000

2019 Actual $'000

Cash flows from operating activities Inflows

(Outflows) Inflows

(Outflows)

Cash inflows

Appropriation receipts - recurrent 521 458 482 700

Appropriation receipts - works and services 47 000 38 626

Receipts from Special Capital Investment Funds 1 053 3 878 Grants - continuing operations 22 852 21 055

Rental revenue 0 52 773

Sales of goods and services 53 709 1 106

GST receipts 49 403 25 275 Interest received 8 59

Other cash receipts 24 826 32 392

Total cash inflows 720 309 657 864

Cash outflows

Employee benefits ( 87 317) ( 81 451)

Finance costs ( 7 383) ( 7 596)

GST payments ( 49 610) ( 27 455)

Grants and transfer payments ( 410 099) ( 359 575)

Supplies and consumables ( 122 515) ( 134 012)

Other cash payments ( 2 296) ( 3 913)

Total cash outflows ( 679 220) ( 614 002)

Net cash from/(used by) operating activities 13.2 41 089 43 862

Cash flows from investing activities

Cash inflows

Proceeds from the disposal of non-financial assets 11 447 6 821

Receipts from investments 0 2 958

Receipts from non-operational capital funding - works and services 0 8 208

Repayment of loans by other entities 0 309

Total cash inflows 11 447 18 296

Cash outflows

Payment for acquisition of non-financial assets ( 43 430) ( 30 067)

Payments for investments 1 440 ( 4 674)


Net cash from/(used by) investing activities ( 30 543) ( 16 445)


Notes

2019 Budget $'000

2019 Actual $'000

Cash flows from financing activities Inflows

(Outflows) Inflows

(Outflows)

Cash outflows

Repayment of borrowings ( 7 915) ( 7 915)


Net cash from/(used by) financing activities ( 7 915) ( 7 915)

Net increase/(decrease) in cash and cash equivalents held 2 631 19 502

Cash and deposits at the beginning of the reporting period 26 651 0

Cash transferred in due to restructure 12.2 0 72 671

Cash and deposits at the end of the reporting period 13.1 29 282 92 173

This Statement of Cash Flows should be read in conjunction with the accompanying notes.


Explanations of material variances between budget and actual outcomes are provided in Note 4 of the

accompanying notes.

Statement of Changes in Equity for the year ended 30 June 2019

Notes

Contrib Equity Reserves

Accum Funds

Total Equity

$'000 $'000 $'000 $'000

Balance as at 1 July 2018

0 0 0 0

Adjustment due to change in accounting policy

20.5 0 0 32 32

Restated balance as at 1 July 2018

0 0 32 32

Net result 0 0 3 690 3 690


0 372 999 0 372 999

Total comprehensive result

0 372 999 3 690

Transfers from asset revaluation reserve to accumulated surplus

12.1 0 ( 2 603) 2 603 0

Transactions with owners in their capacity as owners:

Administrative restructure - net assets received

12.2 0 0 1 451 416 1 451 416

Create ARR - DHHS / DPAC assets 12.1 0 268 052 ( 268 052) 0

Balance as at 30 June 2019

0 638 448 1 189 689 1 828 137

This Statement of Changes in Equity should be read in conjunction with the accompanying notes.


Notes to and forming part of the Financial Statements for the

year ended 30 June 2019 Note 1 Administered Financial Statements

11 1.1

Schedule of Administered Income and Expenses

11 1.2

Schedule of Administered Cash Flows 12

Note 2 Departmental Output Schedules

13 2.1

Establishment of the Department of Communities Tasmania

13 2.2

Output Group Information

14 2.3

Reconciliation of Total Output Groups Comprehensive Result to Statement of Comprehensive Income

30

2.4

Reconciliation of Total Output Groups Net Assets to Statement of Financial Position 30

2.5

Administered Output Schedule 31

2.6

Reconciliation of Total Administered Output Groups Comprehensive Result to Administered Statement of Comprehensive Income

31

Note 3 Expenditure under Australian Government Funding Arrangements

32 Note 4 Explanations of Material Variances between Budget and Actual Outcomes

33 4.1

Statement of Comprehensive Income

33 4.2

Statement of Financial Position

34 4.3

Statement of Cash Flows

36 Note 5 Underlying Net Operating Balance

38 Note 6 Revenue from Transactions

39 6.1


39 6.2

Revenue from Special Capital Investment Funds

40 6.3

Grants

41 6.4

Rental revenue

41 6.5

Sales of goods and services

42 6.6

Interest

42 6.7

Contributions received

42 6.8

Other revenue

43 Note 7 Expenses from Transactions

44 7.1

Employee benefits

44 7.2

Depreciation and amortisation

47 7.3

Supplies and consumables

48 7.4

Grants and subsidies

49 7.5

Finance costs

51 7.6

Other expenses

51 Note 8 Other Economic Flows included in Net Result

52 8.1

Net gain/(loss) on non-financial assets

52 8.2

Net gain/(loss) on financial instruments and statutory receivables/payables 53

8.3

Other gains/(losses) from other economic flows

53 Note 9 Assets

54 9.1

Receivables

54 9.2

Loan advances

56 9.3

HomeShare Investments

57 9.4

Other financial assets

58 9.5

Assets held for sale

59 9.6

Property, Plant and Equipment

60 9.7

Intangibles

65 9.8

Other assets

66

Note 10 Liabilities

67 10.1

Payables

67 10.2

Interest bearing liabilities

68 10.3

Employee benefits

69 10.4

Superannuation

70 10.5

Other liabilities

74 Note 11 Commitments and Contingencies

75 11.1

Schedule of Commitments

75 11.2

Contingent assets and liabilities

77 Note 12 Reserves

79 12.1

Reserves

79 12.2

Administrative Restructuring

80 Note 13 Cash Flow Reconciliation

81 13.1

Cash and deposits

81 13.2

Reconciliation of Net Result to Net Cash from Operating Activities

81 13.3

Acquittal of Capital Investment and Special Capital Investment Funds

82 13.4

Financing Facilities

83 13.5

Reconciliation of liabilities arising from financing activities

83 Note 14 Financial Instruments

84 14.1

Risk Exposures

84 14.2

Categories of Financial Assets and Liabilities

88 14.3

Derecognition of Financial Assets

88 14.4

Comparison between Carrying Amount and Net Fair Value of Financial Assets and Liabilities

88

14.5

Net Fair Values of Financial Assets and Liabilities

89 Note 15 Details of Consolidated Entities

90 15.1

List of Entities

90 Note 16 Associated Entities

91 16.1

Tasmanian Affordable Housing Limited

91 Note 17 Notes to Administered Statements

92 17.1

Administered Revenue from Government

92 17.2

Administered Transfer Expenses

92 Note 18 Transactions and Balances Relating to a Trustee or Agency Arrangement

92 18.1

Activities Undertaken Under a Trustee or Agency Relationship

92 Note 19 Events Occurring After Balance Date

93 Note 20 Other Significant Accounting Policies and Judgements

93 20.1

Objectives and Funding

93 20.2

Basis of Accounting

94 20.3

Reporting Entity

94 20.4

Functional and Presentation Currency

94 20.5

Changes in Accounting Policies

95 20.6

Foreign Currency

97 20.7

Comparative Figures

98 20.8

Rounding

98 20.9

Departmental Taxation

98 20.10

Goods and Services Tax

98


Note 1 Administered Financial Statements

The Department administers, but does not control, certain resources on behalf of the Government

as a whole. It is accountable for the transactions involving such administered resources, but does

not have the discretion to deploy resources for the achievement of the Department’s objectives.

1.1 Schedule of Administered Income and Expenses

Notes

2019

Budget

$'000

2019

Actual

$'000 Administered revenue and other income from transactions


Appropriation revenue - Reserved by Law

17.1

7 229

7 229

Total administered revenue and other income from transactions 7 229 7 229

Administered expenses from transactions

Transfer to Tasmanian Community Fund

17.2

6 729

6 729 Transfer to Tasmanian Icon - State Cricket Team

17.2 500 500 Total administered expenses from transactions 7 229 7 229 Administered net result from transactions attributable to the State 0 0

Administered net result 0 0 Administered comprehensive result 0 0

This Schedule of Administered Income and Expenses should be read in conjunction with the

accompanying notes.


The Department does not have any Administered Assets or Liabilities

1.2 Schedule of Administered Cash Flows

Notes

2019 Budget $'000

2019 Actual $'000

Administered cash flows from operating activities Inflows

(Outflows) Inflows

(Outflows)

Administered cash inflows

Appropriation receipts - Reserved by Law 7 229 7 229

Total administered cash inflows 7 229 7 229

Administered cash outflows

Transfer to Tasmanian Community Fund ( 6 729) ( 6 729)

Transfer to Tasmanian Icon - State Cricket Team ( 500) ( 500)

Total administered cash outflows ( 7 229) ( 7 229)

Administered net cash from/(used by) operating activities 0 0

Net increase/(decrease) in administered cash held 0 0

Administered cash and deposits at the beginning of the reporting period 0 0

Administered cash and deposits at the end of the reporting period 0 0

This Schedule of Administered Cash Flows should be read in conjunction with the accompanying notes.



Note 2 Departmental Output Schedules

2.1 Establishment of the Department of Communities Tasmania

The administrative restructure of the Department of Health and Human Services (DHHS) and the

Department of Premier and Cabinet (DPAC) were enacted pursuant to the State Service

(Restructuring) Order 2018. Under this Order, the new Department of Communities Tasmania was

created.

The preparation and presentation of these financial statements have been based on the description

of subsequent events recorded in the DHHS’s audited financial statements for the year ended 30

June 2018.

On 20 March 2018, the Government announced that, effective from 1 July 2018, the Department

of Health and the Department of Communities Tasmania would be established through the

amalgamation of part of the Department of Health and Human Services and part of the

Department of Premier and Cabinet. The restructure resulted in the Department of Health and

Human Services being renamed the Department of Health on 1 July 2018.

The Department of Health and Human Services Output Groups have been allocated to the new

Departments as follows:

Output

Department of Health Department of

Communities Tasmania

1 - Health Services Tasmania System Management X

2 -Tasmanian Health Service X

3 - Statewide Services X

4 - Human Services System Management X

5 - Human Services X

6 - Children Services System Management X

7 - Children Services X

8 - Independent Children's Review Services X

Capital Investment Program X X

Special Capital Investment Funds X X

In addition to the above restructure, the following Output Groups have been reallocated from

the Department of Premier and Cabinet to the Department of Communities Tasmania:

− Output Group 6 Community, Sport and Recreation;

− Output Group 1.3 Safe Homes, Safe Families - Tasmania’s Family Violence Action Plan; and

− Output Group – Administered Items

As these financial statements represent the first year of a new entity, no comparative information has been

disclosed.

2.2 Output Group Information

Comparative information has not been restated for administrative restructures.

Budget information refers to original Budget estimates reflected in the 2018-19 Budget Papers and has

not been subject to audit.

Output Group 1 – Children Services System Management

This Output performs a number of complementary functions including the provision of support for

corporate services, policy, planning, regulation, funding, monitoring and service improvement across

children services.


2019

Budget

$'000

2019

Actual

$'000 Continuing operations


Revenue from appropriation

6 060

1 660

Sales of goods and services 49 15 Other revenue 23 16 Total revenue and other income from transactions


6 132 1 691

Employee benefits

Salaries and wages

2 458

782 Other employee related expenses 54 30 Superannuation expenses 261 86

Depreciation and amortisation 39 1

Consultants 90 127

Maintenance, property services and rental payments 329 243 Communications 29 23 Information technology 197 19 Travel, transport and vehicle leasing payments 59 49 Advertising and promotion 2 0 Other supplies and consumables 82 49

Grants and subsidies 2 187 0 Other expenses 43 4 Total expenses from transactions 5 830 1 413 Net result from transactions (net operating balance) 302 278

Net result from continuing operations 302 278

Other economic flows - other non-owner changes in equity

Changes in property, plant and equipment revaluation reserve

( 3 215)

1 Total other economic flows - other non-owner changes in equity ( 3 215) 1

Comprehensive result ( 2 913) 279


2019

Budget

$'000

2019

Actual

$'000

Expense by Output

1.1 Children Services System Management

5 830

1 413

Total 5 830 1 413

Net Assets

Total assets deployed for Children Services System Management

581

Total liabilities incurred for Children Services System Management ( 222)

Net assets deployed for Children Services System Management 359

Output Group 2 – Children Services

This Output provides services to children, young people and their families through a range of

programs including the child health and parenting service, child protection, out of home care,

adoptions and permanency planning, family violence counselling and support and community and

custodial youth justice.

2019 Budget $'000

2019 Actual $'000



Revenue from appropriation 116 169 155 340

Grants 1 464 290

Sales of goods and services 416 877

Interest 1 0

Other revenue 4 409 1 584



Employee benefits

Salaries and wages 44 817 42 429

Other employee related expenses 292 583

Superannuation expenses 5 823 5 258



Consultants 35 327

Maintenance, property services and rental payments 2 593 2 340

Communications 660 1 049

Information technology 3 090 619

Travel, transport and vehicle leasing payments 1 029 1 479

Medical, surgical and pharmacy supplies 0 76

Advertising and promotion 2 27

Other supplies and consumables 41 554 73 729

Grants and subsidies 21 442 21 251

Other expenses 1 001 2 533


Net result from transactions (net operating balance) ( 279) 5 998


Net gain/(loss) on non-financial assets 12 0

Net gain/(loss) on financial instruments and statutory receivables/payables 0 ( 3)

Total other economic flows included in net result 12 ( 3)

Net result from continuing operations ( 267) 5 995


Changes in property, plant and equipment revaluation reserve 216 219

Total other economic flows - other non-owner changes in equity 216 219

Comprehensive result ( 51) 6 214


2019 Budget $'000

2019 Actual $'000

Expense by Output

2.1 Children Services 122 738 152 093

Total 122 738 152 093

Net Assets

Total assets deployed for Children Services 41 893

Total liabilities incurred for Children Services ( 17 011)

Net assets deployed for Children Services 24 882

Output Group 3 – Independent Children’s and Young Persons' Review

Services

Activities provided in this Output include promoting the rights and wellbeing of children and

examining the policies, practices and services provided for children and any law affecting the

health, welfare, care, protection and development of children.

2019 Budget $'000

2019 Actual $'000





Other revenue 25 5



Employee benefits

Salaries and wages 878 942


Superannuation expenses 115 113


Consultants 14 60

Maintenance, property services and rental payments 83 89

Communications 13 32

Information technology 28 13

Travel, transport and vehicle leasing payments 27 29


Other supplies and consumables 20 59

Grants and subsidies 10 ( 1)

Other expenses 18 6


Net result from transactions (net operating balance) ( 1) 57

Net result from continuing operations ( 1) 57


Changes in property, plant and equipment revaluation reserve ( 2) 0

Total other economic flows - other non-owner changes in equity ( 2) 0

Comprehensive result ( 3) 57


2019

Budget

$'000

2019

Actual

$'000

Expense by Output

3.1 Independent Children's and Young Persons' Review Services

1 208

1 348

Total 1 208 1 348

Net Assets

Total assets deployed for Independent Children's and Young Persons' Review Services

174

Total liabilities incurred for Independent Children's and Young Persons' Review Services ( 189)

Net assets deployed for Independent Children's and Young Persons' Review Services ( 15)

Output Group 4 – Housing Services System Management

This Output provides a number of complementary functions including the provision of support for

corporate services, policy, planning, regulation, funding, monitoring and service improvement across

housing services. This Output also provides support to the Secretary in establishing Output priorities.

2019 Budget $'000

2019 Actual $'000





Other revenue 126 275



Employee benefits






Consultants 93 10


Communications 40 2





Grants and subsidies 130 ( 3)

Other expenses 64 21


Net result from transactions (net operating balance)

( 2 071) ( 325)

Net result from continuing operations ( 2 071) ( 325)


Changes in property, plant and equipment revaluation reserve 2 070 0

Total other economic flows - other non-owner changes in equity 2 070 0

Comprehensive result ( 1) ( 325)


2019

Budget

$'000

2019

Actual

$'000

Expense by Output

4.1 Housing Services System Management

4 244

1 781

Total 4 244 1 781

Net Assets

Total assets deployed for Housing Services System Management

( 601)

Total liabilities incurred for Housing Services System Management ( 575)

Net assets deployed for Housing Services System Management ( 1 176)

Output Group 5 – Housing Services

This Output provides services relating to planning, developing and managing affordable housing and

homelessness programs throughout the State.


2019

Budget

$'000

2019

Actual

$'000




51 562

55 468

Grants 1 739 1 153

Rental revenue 0 54 360

Sales of goods and services 52 545 462

Interest 7 59

Contributions received 0 40


Total revenue and other income from transactions Expenses from transactions

116 953 131 805

Employee benefits Salaries and wages

10 514

11 124



Depreciation and amortisation 23 038 24 692

Consultants

124

576








Finance costs 7 383 7 596

Other expenses 880 1 154


Net result from transactions (net operating balance) ( 19 361) ( 19 946)



( 627)

( 9 662)

Net actuarial gains/(losses) on superannuation defined benefit plans 0 ( 966)


Other gains/(losses) from other economic flows 0 274

Total other economic flows included in net result ( 627) ( 11 129)

Net result from continuing operations ( 19 988) ( 31 075)



12 935

372 120

Total other economic flows - other non-owner changes in equity 12 935 372 120

Comprehensive result ( 7 053) 341 045


2019

Budget

$'000

2019

Actual

$'000

Expense by Output

5.1 Housing Services

136 314

151 751

Total 136 314 151 751

Net Assets

Total assets deployed for Housing Services

1 851 519

Total liabilities incurred for Housing Services ( 185 688)

Net assets deployed for Housing Services 1 665 831

Output Group 6 – Disability Services and Community Development

This Output provides services relating to planning, developing and managing Community and Disability

Services throughout the State.

2019 Budget $'000

2019 Actual $'000




Grants 19 785 14 361





Employee benefits




Depreciation and amortisation 704 1 540


Consultants 170 558









Other expenses 293 395




Net gain/(loss) on non-financial assets 2 0


Total other economic flows included in net result 2 ( 2)

Net result from continuing operations ( 2 345) ( 5 351)


Changes in property, plant and equipment revaluation reserve 594 659

Total other economic flows - other non-owner changes in equity 594 659

Comprehensive result ( 1 751) ( 4 692)


2019

Budget

$'000

2019

Actual

$'000

Expense by Output

6.1 Community Services

29 710

29 088

6.2 Disability Services 285 834 231 044

6.3 Community Development - Policy Advice and Ongoing Community Development 17 855 10 137

6.4 Aboriginal Affairs 1 301 1 735

6.5 Women's Policy 532 142

6.6 Veterans' Affairs 734 708

6.7 Sport and Recreation 31 312 24 151

Total 367 278 297 005

Net Assets

Total assets deployed for Disability Services and Community Development

68 182

Total liabilities incurred for Disability Services and Community Development ( 25 393)

Net assets deployed for Disability Services and Community Development 42 789

Output Group 7 – Safe Homes, Safe Families

This Output facilitates the actions being delivered by Government agencies under Safe Homes, Safe

Families: Tasmania's Family Violence Action Plan (2015-2020) that is the coordinated, whole-of

government response to family violence in Tasmania.

2019 Budget $'000

2019 Actual $'000





Other revenue 0 32

Total revenue and other income from transactions

7 398 8 081


Employee benefits

Salaries and wages 495 646




Consultants 0 6


Communications 0 6



Other supplies and consumables 5 428 118


Other expenses 0 7


Net result from transactions (net operating balance) 0 1 593

Net result from continuing operations 0 1 593

Comprehensive result 0 1 593

2019 Budget $'000

2019 Actual $'000

Expense by Output

7.1 Safe Homes, Safe Families - Tasmania's Family Violence 7 398 6 488

Total 7 398 6 488

Net Assets

Total assets deployed for Safe Homes, Safe Families 3 253

Total liabilities incurred for Safe Homes, Safe Families ( 2 491)

Net assets deployed for Safe Homes, Safe Families 762


Output Group – Capital Investment Program

This Output provides financial information on the Department's Capital Investment Program.


2019

Budget

$'000

2019

Actual

$'000




47 000

39 313

Grants 0 5 189



Total revenue and other income from transactions Expenses from transactions

48 600 46 061

Employee benefits Salaries and

wages

0

571



Consultants

0

1 690

Maintenance, property services and rental payments 0 3 352

Communications 0 1






Other expenses 0 4


Net result from transactions (net operating balance) 40 969 20 646



12 060

9 519

Other gains/(losses) from other economic flows 1 140 2 929


Net result from continuing operations 54 169 33 094



22 624

0

Total other economic flows - other non-owner changes in equity 22 624 0


2019

Budget

$'000

2019

Actual

$'000

Expense by Output

Capital Investment Program

7 631

25 415

Total 7 631 25 415

Net Assets

Total assets deployed for Capital Investment Program

95 268

Total liabilities incurred for Capital Investment Program 0

Net assets deployed for Capital Investment Program 95 268

Expenditure in Output-Capital Investment Program which does not qualify for capitalisation remains in

this Output Group.


Output Group – Special Capital Investment Funds

This Output identifies capital works by the Department from the State Government's Special Capital

Investment Fund.

2019

Budget

$'000

2019

Actual

$'000



Revenue from Special Capital Investment Funds

1 053

406

Total revenue and other income from transactions 1 053 406


Grants and subsidies

1 053

982

Total expenses from transactions 1 053 982

Net result from transactions (net operating balance) 0 ( 576)

Net result from continuing operations

0

( 576)

Comprehensive result 0 ( 576)

2019

Budget

$'000

2019

Actual

$'000

Expense by Output

Special Capital Investment Funds

1 053

982

Total 1 053 982

Net Assets

Total assets deployed for Special Capital Investment Funds

2 994

Total liabilities incurred for Special Capital Investment Funds ( 3 557)

Net assets deployed for Special Capital Investment Funds ( 563)

Expenditure in Output-Special Capital Investment Funds which does not qualify for capitalisation

remains in this Output Group.

2.3 Reconciliation of Total Output Groups Comprehensive Result to Statement of

Comprehensive Income

2019

Budget

$'000

2019

Actual

$'000

Total comprehensive result of Output Groups Children Services System Management

( 2 913)

279

Children Services ( 51) 6 214

Independent Children's and Young Persons' Review Services ( 3) 57

Housing Services System Management ( 1) ( 325)

Housing Services ( 7 053) 341 045

Disability Services and Community Development ( 1 751) ( 4 692)

Safe Homes, Safe Families 0 1 593

Capital Investment Program 76 793 33 094

Special Capital Investment Funds 0 ( 576)

Total comprehensive result 65 021 376 689


2.4 Reconciliation of Total Output Groups Net Assets to Statement of Financial

Position

2019 $'000

Total net assets deployed for Output Groups

Children Services System Management 359

Children Services 24 882

Independent Children's and Young Persons' Review Services ( 15)

Housing Services System Management ( 1 176)

Housing Services 1 665 831

Disability Services and Community Development 42 789

Safe Homes, Safe Families 762

Capital Investment Program 95 268

Special Capital Investment Funds ( 563)

Total net assets deployed 1 828 137

Net assets 1 828 137


2.5 Administered Output Schedule

Output Group – Administered Items

2019

Budget

$'000

2019

Actual

$'000

Administered revenue and other income from transactions


7 229

7 229

Total administered revenue and other income from transactions 7 229 7 229

Administered expenses from transactions

Tasmanian Community Fund

6 729

6 729

Tasmanian Icon - State Cricket Team 500 500

Total administered expenses from transactions 7 229 7 229

Administered net result from transactions (net operating balance) 0 0

Total administered comprehensive result 0 0

Administered expense by project

Tasmanian Community Fund

6 729

6 729

Tasmanian Icon - State Cricket Team 500 500

Total 7 229 7 229


2.6 Reconciliation of Total Administered Output Groups Comprehensive Result to

Administered Statement of Comprehensive Income

2019

Budget

$'000

2019

Actual

$'000

Total administered net result of Administered Items

0

0

Reconciliation to administered net surplus (deficit)

0

0

Comprehensive result 0 0


Note 3 Expenditure under Australian Government Funding

Arrangements

State

Funding

Australian

Government

Funding

2019

Actual

$'000

2019

Actual

$'000

Specific Purpose Payments

Disability Services

168 437

34 139

Affordable Housing 0 33 026

National Partnership Payments

Health Services

3 060

6 800

Housing 0 6 540

Community Services 0 6 258

Commonwealth Own Purpose Expenditures

Other

0

250

Total 171 497 87 013

Specific Purpose Payments (SPPs) are payments from the Australian Government to the Tasmanian

Government arising from national agreements that set out the Australian Government's agreed

objectives and outcomes, outputs, roles and responsibilities and performance indicators for each

sector. SPPs are distributed to the States on the basis of their population shares.

National Partnership Payments (NPPs) are similar to SPPs but are provided for the purpose of the

delivery of specified projects to facilitate reforms or reward jurisdictions that deliver nationally

significant reforms.

Commonwealth Own Purpose Expenditure is funding paid directly from the Australian Government to

the States and Territories for the provision of services identified by the Australian Government.


Note 4 Explanations of Material Variances between Budget

and Actual Outcomes

Budget information refers to original Budget estimates as disclosed in the 2018-19 Budget Papers and is not

subject to audit.

Variances are considered material where the variance exceeds the greater of 10 per cent of Budget estimate

or $1.0 million.

4.1 Statement of Comprehensive Income

Note 2019

Budget $'000

2019 Actual $'000

Variance $'000

Variance

Appropriation revenue - works and services (a) 47 000 39 313 ( 7 687) ( 16.4%)

Other revenue from Government (b) 0 7 521 7 521 n/a

Rental revenue (c) 0 54 360 54 360 n/a

Sales of goods and services (d) 53 709 2 288 ( 51 421) ( 95.7%)

Other revenue (e) 24 826 32 392 7 566 30.5%

Depreciation and amortisation (f) 24 184 26 626 ( 2 442) ( 10.1%)

Supplies and consumables (g) 122 521 158 590 ( 36 069) ( 29.4%)

Grants and subsidies (h) 410 099 358 189 51 910 12.7%

Other expenses (i) 2 299 4 124 ( 1 825) ( 79.4%)

Net gain/(loss) on non-financial assets (j) 11 447 ( 143) ( 11 590) ( 101.2%)

Other gains/(losses) from other economic flows (k) 1 140 3 203 2 063 181.0%

Notes to Statement of Comprehensive Income variances a) The variance in Appropriation revenue - works and services reflects underspends due to delays in the

following capital projects: The Affordable Housing Strategy Action Plan 2019-2023 (Action Plan 2), the

Ashley Youth Detention Centre Redevelopment, the Southern Indoor Multisport Facility - Southern

Tasmania.

b) The increase in Other revenue from Government reflects the recognition of approved Section 8a(2) Carry

Forwards from 2017-18, which were higher than those estimated at the time the 2018-19 budget was

prepared.

c) The budget for rental revenue has been allocated to Sales of goods and services.

d) The budget includes rental revenue as noted above.

e) The variance in Other revenue primarily reflects the reimbursement from the DPAC for the Emergency

Assistance Grants relating to the 2019 Bushfires.

f) The variance in Depreciation and amortisation reflects higher than anticipated asset values.

g) The increase in Supplies and consumables reflects additional costs in Out of Home Care, additional

Housing Tasmania maintenance, additional rates on Housing Tasmania properties due to an increase in the

rates payable and additional insurance expenses on Housing Tasmania properties.

h) The variance in Grants and subsidies primarily relates lower than anticipated transitions to the NDIS.

i) The variance in Other expenses primarily relates to higher than anticipated Workers Compensation

premiums for the Department.

j) The Net gain/(loss) on non-financial assets represents the loss on disposal of physical assets. At the time

of preparing the 2018-19 Budget, it was anticipated that disposals would generate gains for the

Department.

k) The Other gains/(losses) from the other economic flows represents the disposal of equity interments,

relating to the Home Ownership Assistance Programs.

4.2 Statement of Financial Position

Budget estimates for the 2018-19 Statement of Financial Position were compiled prior to the completion of

the actual outcomes for 2017-18. As a result, the actual variances from the Budget estimate will be

impacted by the difference between estimated and actual opening balances for 2018-19. The following

variance analysis therefore includes major movements between the 30 June 2018 and 30 June 2019 actual

balances.

Note 2019

Budget $'000

2019 Actual $'000

Budget Variance

$'000

Cash and deposits (a) 29 282 92 173 62 891

Receivables (b) 4 255 8 967 4 712

HomeShare investments (c) 26 936 22 582 ( 4 354)

Other financial assets (d) 4 633 331 ( 4 302)

Assets held for sale (e) 1 523 5 185 3 662

Property, plant and equipment (f) 1 733 227 1 926 976 193 749

Other assets (g) 3 720 57 ( 3 663)

Payables (h) 11 897 29 123 17 226

Interest bearing liabilities (i) 142 131 157 600 15 469

Superannuation (j) 12 840 7 986 ( 4 854)

Other liabilities (k) 4 535 16 089 11 554

Notes to Statement of Financial Position Budget Variances

a) The increase in Cash and deposits primarily reflects a higher than anticipated cash balance transferred

from the former DHHS. At the time of preparing the 2018-19 Budget, the Department of Health and

Department of Communities Tasmania had not fully agreed how to split the balance sheet items of the

former Department of Health and Human Services. Therefore, the balance of this account was an

estimate at that point in time.

b) The increase in Receivables primarily reflects a higher than anticipated receivables balance as at 30 June.

c) Repayment of the Director of Housing's interest in the underlying asset has occurred in advance of

original estimates.

d) The decrease in Other financial assets primary reflects a lower than anticipated balance in accrued

revenue as at 30 June.

e) The increase in Assets held for sale reflects an unbudgeted movement.

f) The increase in Property, plant and equipment primarily reflects a higher than anticipated balance at 30

June 2019 following the revaluation of assets during 2018-19.

g) The decrease in Other assets reflects a lower than anticipated balance of Prepayments at 30 June 2019.

At the time of preparing the 2018-19 Budget, the Department of Health and Department of

Communities Tasmania had not fully agreed how to split the balance sheet items of the former

Department of Health and Human Services. Therefore, the balance of this account was an estimate at

that point in time.

h) The increase in Payables reflects the June NDIS transitional payment, which is received and paid in July.


i) The balance of Interest bearing liabilities reflects the Commonwealth State Housing Agreement. The

increase reflects that the estimated balance included in the 2018-19 Budget was not correctly allocated

between Department of Health and Department of Communities in the split of Department of Health and

Human Services.

j) The balance in Superannuation reflects the value of Housing Defined Benefits. The decrease primarily

reflects that the estimated balance included in the 2018-19 Budget was not correctly allocated between the

Department of Health and Department of Communities in the split of Department of Health and Human

Services.

k) The balance of Other liabilities largely primarily reflects a higher than anticipated level of Section 8A(2)

carry forwards approved at the end of the year, and higher than anticipated revenue received in advance.

The original budget anticipated that the level of Section 8A(2) Carry forward would remain similar to prior

years. The Revenue received in advance includes $2.98 million relating to the transfer of the Housing Fund

from Treasury to the Department, and $2.96 million related to rent received in advance.

4.3 Statement of Cash Flows

Note 2019

Budget $'000

2019 Actual $'000

Variance $'000

Variance

Appropriation receipts - works and services (a) 47 000 38 626 ( 8 374) ( 17.8%) Receipts from Special Capital Investment Funds (b) 1 053 3 878 2 825 268.3%

Rental revenue (c) 0 52 773 52 773 n/a

Sales of goods and services (d) 53 709 1 106 ( 52 603) ( 97.9%) GST receipts (e) 49 403 25 275 ( 24 128) ( 48.8%)

Other cash receipts (f) 24 826 32 392 7 566 30.5%

GST payments (g) ( 49 610) ( 27 455) ( 22 155) 44.7%

Grants and transfer payments (h) ( 410 099) ( 359 575) ( 50 524) 12.3%

Other cash payments (i) ( 2 296) ( 3 913) 1 617 ( 70.4%)

Proceeds from the disposal of non-financial assets (j) 11 447 6 821 ( 4 626) ( 40.4%)

Receipts from Investments (k) 0 2 958 2 958 n/a

Receipts from non-operational capital funding - Works and services (l) 0 8 208 8 208 n/a

Payment for acquisition of non-financial assets (m) ( 43 430) ( 30 067) ( 13 363) 30.8%

Payments for investments (n) 1 440 ( 4 674) 6 114 424.6%

Notes to Statement of Cash Flows variances

a) The variance in Appropriation receipts - works and services reflects underspends due to delays in

the following capital projects: The Affordable Housing Strategy Action Plan 2019-2023 (Action

Plan 2) the Ashley Youth Detention Centre Redevelopment and the Southern Indoor Multisport

Facility - Southern Tasmania.

b) The variance in Receipts from Special Capital Investment Funds reflects the timing of payments.

The final payment for 2018-19 relied on Australian Government compliance assessments, which

have now been completed and these payments were made in July 2019.

c) The actuals are consistent with prior years. The variance is a budgeted error which is being

corrected as noted above.

d) The variance in GST Receipts reflects that the actual was lower than anticipated. At the time of

preparing the 2018-19 Budget, the split of this item from Department of Health and Human

Services to Department of Health and Department of Communities Tasmania was based on an

estimate at a point in time.

e) The variance in Other cash receipts primarily reflects the reimbursement from the Department of

Premier and Cabinet for the Emergency Assistance Grants relating to the 2019 Bushfires.

f) The variance in GST Payments reflects that the actual was lower than anticipated. At the time of

preparing the 2018-19 budget, the split of this item from Department of Health and Human

Services to Department of Health and Department of Communities Tasmania was based on an

estimated at a point in time.

g) The variance in Grants and transfer payments primarily relates to lower than anticipated

transitions to the NDIS.

h) The variance in Other cash payments primarily relates to higher than anticipated Workers

Compensation premiums for the Department.

i) The variance in Proceeds from the disposal of non-financial assets reflects lower than anticipated

proceeds from the sale of housing stock during the year.


j) The higher than budgeted Receipts from investments represents the higher than anticipated sale

of equity investments during the year.

k) This represents the non-operational application of capital proceeds.

l) The variance in the Payment for acquisition of non-financial assets primarily reflects the timing of

cashflows relating to the Affordable Housing Strategy Action Plan 2019-2023 (Action Plan 2), the

Ashley Youth Detention Centre Redevelopment and the Southern Indoor Multisport Facility -

Southern Tasmania.

m) The variance in Payments for investments reflects higher than anticipated activity relating to

HomeShare.

Note 5 - Underlying Net Operating Balance

Non-operational capital funding reflects the income from transactions relating to funding for capital

projects. This funding is classified as revenue from transactions and included in the net operating

balance. However, the corresponding capital expenditure is not included in the calculation of the net

operating balance. Accordingly, the net operating balance will portray a position that is better than

the true underlying financial result.

For this reason, the Net operating balance is adjusted to remove the effects of funding for capital

projects.

Non-operational expenditure that is removed from the net operating balance consists of the transfer

of property under the Community Housing Program.

Less impact of:

Notes

2019

Budget

$'000

2019

Actual

$'000

Net result from transactions (Net operating balance)

17 212

2 376

Non-operational capital funding

Net result from Capital Investment Program Output

40 969

20 646

Net result from Special Capital Investment Funds 0 ( 576)

Total 40 969 20 070

Plus impact of:

Other one-off transactions

Expenditure:

- Non-monetary asset transfers (Housing Services Output)

0

35 Total 0 35

Underlying Net operating balance ( 23 757) ( 17 659)


Note 6 - Revenue from Transactions

Income is recognised in the Statement of Comprehensive Income when an increase in future

economic benefits related to an increase in an asset or a decrease of a liability has arisen that can be

measured reliably.

6.1 Revenue from Government

Appropriations, whether recurrent or capital, are recognised as revenues in the period in which

the Department gains control of the appropriated funds. Except for any amounts identified as

carried forward, control arises in the period of appropriation.

Revenue from Government includes revenue from appropriations, appropriations carried

forward under section 8A(2) of the Public Account Act 1986 and Items Reserved by Law.

Section 8A(2) of the Public Account Act allows for an unexpended balance of an appropriation to

be transferred to an Account in the Special Deposits and Trust Fund for such purposes and

conditions as approved by the Treasurer. In the initial year, the carry forward is recognised as a

liability, Revenue Received in Advance (refer note 9.5). The carry forward from the initial year is

recognised as revenue in the reporting year, assuming that the conditions of the carry forward are

met and the funds are expended. This amount was carried forward from the former DHHS.

2019 Budget $'000

2019 Actual $'000

Continuing Operations

Appropriation revenue - recurrent

Current year ( 521 458) 483 279

Total ( 521 458) 483 279

Appropriation revenue - works and services ( 47 000) 39 313

Revenue from Government - other

Appropriation carried forward under section 8A(2) of the Public Account Act 1986 taken up as revenue in the current year 0 7 521

Total 0 7 521

Total revenue from Government ( 568 458) 530 113

6.2 Revenue from Special Capital Investment Funds

Funding for major infrastructure projects is provided through Special Capital Investment Funds. The

Department is allocated funding for specific projects from the Special Capital Investment Funds as

part of the Budget process.

2019 $'000


Housing Fund 406

Total

0 406

Total revenue from Special Capital Investment Funds 406

Details of total Special Capital Investment Funds revenues and expenses are provided as

part of Note 2 Departmental Output Schedules. Details of total cash flows for each project are at

Note 13.3.


6.3 Grants

Grants payable by the Australian Government are recognised as revenue when the Department gains

control of the underlying assets. Where grants are reciprocal, revenue is recognised as performance

occurs under the grant.

Non-reciprocal grants are recognised as revenue when the grant is received or receivable.

Conditional grants may be reciprocal or non-reciprocal depending on the terms of the grant.

2019 $'000


Grants from the Australian Government

COPES receipts 119

Other Commonwealth Grants 15 685

Total 15 804



Other Commonwealth Grants 5 189

Total 5 189

Total revenue from Grants 20 993

In 2019, Other Commonwealth Grants included $7.4 million for the Bilateral Agreement on Older

People, $5.2 million for the Equal Remuneration Order NPA and $5.2 million for the Remote

Indigenous Housing NPA.

6.4 Rental revenue

Rental Revenue arises from the letting of properties owned by the Director of Housing. This is

comprised of the market rent for each individual property reduced by the public rental subsidy,

which is an income based subsidy derived from the clients' individual circumstances.

Rental income, together with the associated rebate, is recognised on an accruals basis in accordance

with individual tenancy arrangements.

2019 $'000

Residential rent income 96 115

Less: Rebates ( 41 755)

Total 0 54 360

6.5 Sales of goods and services

Amounts earned in exchange for the provision of goods are recognised when the significant risks and

rewards of ownership have been transferred to the buyer. Revenue from the provision of services is

recognised in proportion to the stage of completion of the transaction at the reporting date. The

stage of completion is assessed by reference to surveys of work performed.

2019 $'000

Commercial rent income 92

Other client revenue 305

Other user charges 1 891

Total

0 2 288

Other user charges includes funding for the Child Protection Information System Data Cleanse

project and income from trading.

6.6 Interest

Interest on funds invested is recognised as it accrues using the effective interest rate method.

6.7 Contributions received

Services received free of charge by the Department, are recognised as income when a fair value can

be reliably determined and at the time the services would have been purchased if they had not been

donated. Use of those resources is recognised as an expense.

Contributions of assets at no cost of acquisition or for nominal consideration are recognised at their

fair value when the Department obtains control of the asset, it is probable that future economic

benefits comprising the contribution will flow to the Department and the amount can be measured

reliably. However, where the contribution received is from another government department as a

consequence of restructuring of administrative arrangements, they are recognised as contributions

by owners directly within equity. In these circumstances, book values from the transferor

department have been used.

2019

$'000

Fair value of assets assumed at no cost or for nominal consideration

40

Total 40

In 2019, Fair value of assets assumed at no cost or for nominal consideration refers to a block of

vacant land at 2 Clive Street, St Mary's that came to the Director of Housing as a contribution

received.


6.8 Other revenue

Other revenue primarily relates to the recovery of costs incurred and is recognised when an increase

in future economic benefits relating to an increase in an asset or a decrease of a liability has arisen

that can be reliably measured.

2019 $'000

Wages and salaries recoveries 436

Food recoveries 4

Workers compensation recoveries 807

Operating recoveries 26 036

Donations 437

Community support levy 2 701

Revenue from sale of contingent assets 1 971

Total 0 32 392

Operating recoveries includes rates, service charges and insurance that are recouped from

community organisations managing tenancies under the Better Housing Futures (BHF) program and

other arrangements.

Revenue from sale of contingent assets represents Housing Tasmania's share of sales proceeds for

properties under the BHF program. Refer to note 11.2 (a) for further discussion on the BHF

program.

Note 7 Expenses from Transactions

Expenses are recognised in the Statement of Comprehensive Income when a decrease in future

economic benefits related to a decrease in an asset or an increase of a liability has arisen that can be

measured reliably.

7.1 Employee benefits

Employee benefits include, where applicable, entitlements to wages and salaries, annual leave, sick

leave, long service leave, superannuation and any other post-employment benefits.

a) Employee expenses

2019 $'000

Wages and salaries including FBT 64 979

Annual leave 4 107

Long service leave 1 382

Sick leave 2 873

Other employee expenses - recruitment & staff development 741

Other employee expenses - other staff allowances 286

Superannuation expenses - defined contribution and benefits schemes 8 782

Total 0 83 150

Superannuation expenses relating to defined benefit schemes relate to payments into the

Consolidated Fund. The amount of the payment is based on a department contribution rate

determined by the Treasurer, on the advice of the State Actuary. The current department

contribution is 12.95 per cent (2018: 12.95 per cent) of salary. The current year defined benefit

superannuation expense is $609 000.

Superannuation expenses relating to defined contribution schemes are paid directly to

superannuation funds at a rate of 9.5 per cent (2018: 9.5 per cent) of salary. In addition,

departments are also required to pay into the Consolidated Fund a “gap” payment equivalent to

3.45 per cent (2018: 3.45 per cent) of salary in respect of employees who are members of

contribution schemes. The current year defined contribution scheme superannuation expense is $8

173 million.

b) Remuneration of key management personnel

Key management personnel are those persons having authority and responsibility for planning,

directing and controlling the activities of the Department, directly or indirectly.

Remuneration during 2018-19 for key personnel is set by the State Service Act 2000 .

Remuneration and other terms of employment are specified in employment contracts.

Remuneration includes salary, motor vehicle and other non-monetary benefits. Long term employee

expenses include long service leave, superannuation obligations and payments made on departure.


Acting Arrangements

When members of key management personnel are unable to fulfil their duties, consideration is given

to appointing other members of senior staff to their position during their period of absence.

Individuals are considered members of key management personnel when acting arrangements are for

more than a period of one month.

The following were key management personnel of the Department at any time during the financial

year and unless otherwise indicated were key management personnel for the entire year.

Short-term benefits Long-term benefits

2019

Salary1 Other Benefits2 Superann- uation3

Other Benefits and Long-

Service Leave4

Termination Benefits5

Total

$'000 $'000 $'000 $'000 $'000 $'000

Key management personnel

Ginna Webster - Secretary 324 15 31 0 0 370

Peter White - Deputy Secretary, Housing, Disability and Community Services 167 23 22 0 0 212

Kate Kent - Deputy Secretary, Communities, Sport and Recreation 182 19 26 0 0 227

Ingrid Ganley - Director, Disability and Community Services 127 18 18 14 0 177

Mathew Healey - Executive Director, Engagement and Innovation 167 21 22 6 0 216

Kathy Baker - Executive Director, Capability and Resources 155 13 20 0 0 188

Greg Brown - Director, Strategic Youth Services 142 22 18 0 0 182

Mandy Clarke - Executive Director, Standards and Performance 133 20 13 0 0 166

Acting Key management personnel

Gail Eaton-Briggs - Deputy Secretary, Children and Youth Services (for whole period) 167 19 21 0 0 207

Kate Kent - Secretary (24/01/2019 to 17/02/2019) 20 0 3 0 0 23

Mandy Clarke - Deputy Secretary, Communities, Sport and Recreation (12/7/2018 to 20/7/2018, 02/10/2018 to12/10/2018 and 24/01/2019 to 17/02/2019) 25 0 2 0 0 27

Total 1 609 170 196 20 0 1 995

Notes:

1. Salary includes all forms of consideration paid and payable for services rendered and compensated

absences during the period.

2. Other benefits includes all other forms of non-salary benefits such as motor vehicles and parking,

fringe benefit tax payable in respect of these benefits, payments in lieu of leave, annual leave

movements and any other compensation paid or payable.

3. Superannuation means the contribution to the superannuation fund of the individual.

4. Other long term benefits and long service leave includes the movements in the discounted long

service leave balances.

5. Termination Benefits include accrued annual and long service leave entitlements and termination

payments.

c) Remuneration of Ministers

There are no applicable related party transactions with any State Government entity in 2018-19.

d) Related party transactions

There are no material significant party transactions requiring disclosure.


7.2 Depreciation and amortisation

All applicable Non-financial assets having a limited useful life are systematically depreciated over their

useful lives in a manner which reflects the consumption of their service potential. Land and Artwork,

being assets with unlimited useful lives, are not depreciated.

Key estimate and judgment

Depreciation is provided for on a straight line basis, using rates which are reviewed annually. Major

depreciation periods are:

Vehicles 5 years

Plant and equipment 2-20 years

Medical equipment 4-20 years

Buildings 40-50 years

Depreciation of Housing Tasmania’s rental dwellings and community rental stock is based on a useful

life of 50 years in accordance with the State Housing Authority’s Accounting Policies and Reporting

Framework (March 1995) . All other buildings are depreciated over their remaining useful life.

All intangible assets having a limited useful life are systematically amortised over their useful lives

reflecting the pattern in which the asset’s future economic benefits are expected to be consumed by

the Department.

Major amortisation rates are:

Software 20 per cent

a) Depreciation

2019 $'000

Plant, equipment and vehicles 117

Buildings 26 076

Total 0 26 193

b) Amortisation

2019 $'000

Intangibles 433

Total 0 433

Total depreciation and amortisation 0 26 626

7.3 Supplies and consumables

2019 $'000

Consultants 3 354

Property services and rental payments 38 105

Maintenance 28 161


Information technology 1 783 Travel, transport and vehicle leasing payments 2 554

Medical, surgical and pharmacy supplies 85

Advertising and promotion 450

Patient and client services 71 503

Other leasing and licencing costs 226

Equipment and furniture 190

Administration 433

Food production costs 327


Corporate overhead charge 6 815

Service fees 1 068

Audit services 153

Total 158 590

Patient and client services primarily relates to Out of Home Care costs


7.4 Grants and subsidies

Grant and subsidies expenditure is recognised to the extent that:

• the services required to be performed by the grantee have been performed; or

• the grant eligibility criteria have been satisfied.

A liability is recorded when the Department has a binding agreement to make the grants but services have

not been performed or criteria satisfied. Where grant monies are paid in advance of performance or

eligibility, a prepayment is recognised.

2019 $'000

Grant - Disability Services 198 511

Grant - Community Services 30 018

Grant - Children and Youth Services 20 694

Grant - Equal Remuneration Order 11 884

Grant - Housing 20 590

Grant - Better Housing Futures 2 709

Grant - Community Housing Program 35

Grant - Supported Assistance Accommodation Program 25 818

Grant - Sport and Recreation 15 996

Grant - Emergency Assistance Grants 6 387

Grant - Family Violence Program 5 397

Grant - Aboriginal Affairs 1 290

Grant - Veterans Affairs 515

Grant - Other 18 345

Total Other Grants 358 189

Total 358 189

The Department provides grants for a range of services including disability services, children and youth

services and other community grants. Disability grants include payments for carer support, respite,

accommodation support, information, advocacy, education, day support, specialist equipment, personal

care, disability gateway services and other individual support services.

Under the Bilateral Agreement for the transition to a National Disability Insurance Scheme, the

Commonwealth has financial responsibility for aged care and specialist disability services for older people

aged over 65 years (Indigenous Australians over 50 years). In addition the Commonwealth will take over

service delivery responsibility for specialist disability services for older people as part of the NDIS roll out.

Tasmania continues to have responsibility for disability and aged care for younger people under 65 years

(Indigenous Australians under 50 years). Under cross billing arrangements Tasmania will pay the

Commonwealth for the actual costs of younger people in residential aged care and Home Care packages.

In addition Tasmania continues to pay for disability services provided to older persons and this is offset by

Australian government funding.

The Department also provides assistance to sport and recreation in the State including funding towards

improving women's sport facilities, hydrotherapy pool at the Hobart Aquatic Centre and Ticket to Play -

the first sports voucher system for young Tasmanians.

The Department provides supported accommodation assistance including and private rental support,

crisis accommodation, and related support for people who are experiencing homelessness or who

are at imminent risk of becoming homeless.

Grants to the Community Housing Program reflect the transfer of properties to non-government

organisations who have assumed responsibility for the management of Housing properties.


7.5 Finance costs

All finance costs are expensed as incurred using the effective interest method.

Finance costs primarily include:

• interest on long term borrowings;

• interest on superannuation defined benefit plans

Notes 2019 $'000

Interest expense

Interest on loans 7 383

Interest on superannuation defined benefit plans 10.4(b) 213

Total 7 596

The Australian Government has agreed to waive all future principal and interest repayments relating to the

former Commonwealth State Housing Agreement debt. This is on the condition that the full amount of

former principal and interest repayments is applied to new housing support, access and supply. Refer to

Note 19 for further detail.

7.6 Other expenses

Other expenses are recognised when a decrease in future economic benefits related to a decrease in an

asset or an increase of a liability has arisen that can be reliably measured.

2019 $'000

Salary on-costs 2 900

Tasmanian Risk Management Fund premium 1 042

Board costs 3

Other 179

Total 4 124

Other expenses includes legal costs of $100 000 and an approved ex gratia payment of $38 625.

Note 8 Other Economic Flows included in Net Result

Other economic flows measure the change in volume or value of assets or liabilities that do not

result from transactions.

8.1 Net gain/(loss) on non-financial assets

Gains or losses from the sale of non-financial assets are recognised when control of the assets has

passed to the buyer.

Key Judgement

All non-financial assets are assessed to determine whether any impairment exists. Impairment exists

when the recoverable amount of an asset is less than its carrying amount. Recoverable amount is the

higher of fair value less costs to sell and value in use. Value in use is expected to be materially the

same as fair value, as determined under AASB 13 Fair Value Measurement .

All impairment losses are recognised in the Statement of Comprehensive Income unless it relates to a

revalued asset. In accordance with AASB 136 Impairment of Assets , for previously revalued assets,

any loss is recognised directly against the revaluation reserve, to the extent the loss does not exceed

the amount in the revaluation reserve for that same asset class.

In respect of other assets, impairment losses recognised in prior periods are assessed at each

reporting date for any indications that the loss has decreased or no longer exists. An impairment

loss is reversed if there has been a change in the Estimates used to determine the recoverable

amount. An impairment loss is reversed only to the extent that the asset's carrying amount does not

exceed the carrying amount that would have been determined, net of depreciation or amortisation,

if no impairment loss had been recognised.

2019 $'000

Net gain/(loss) on disposal of physical assets ( 143)

Total net gain/(loss) on non-financial assets ( 143)


8.2 Net gain/(loss) on financial instruments and statutory receivables/payables

Financial assets are assessed at each reporting date to determine whether they are impaired. A

financial asset was considered to be impaired if objective evidence indicated that one or more

events had a negative effect on the estimated future cash flows of that asset.

From 2018-19 financial assets are to be impaired by replacing the incurred loss approach under AASB

139 Financial Instruments: Recognition and Measurement with the expected credit loss approach

under AASB 9 Financial Instruments . The expected credit loss is to be recognised for all debt

instruments not held at fair value through profit or loss.

Key Judgement

An impairment loss using the expected credit loss method for all trade debtors uses a lifetime

expected loss allowance. The expected loss rates are based upon historical observed loss rates that

are adjusted to reflect forward looking macroeconomic factors.

For other financial instruments that are not trade receivables, contract assets or lease receivables,

the Department has measured the expected credit loss using a probability-weighted amount that

takes into account the time value of money and forward looking macroeconomic factors.

Notes

2019

$'000

Impairment of loans and receivables 9.1

( 780)

Total net gain/(loss) on financial instruments ( 780)

8.3 Other gains/(losses) from other economic flows

Other gains/(losses) from other economic flows includes gains or losses from reclassifications of

amounts from reserves and/or accumulated surplus to net result.

2019

$'000

Net gain/(loss) on disposal of Home Share investments

441

Revaluation increments/(decrements) of HomeShare investments 2 732

Impairment of HomeShare investments 30

Total net gain/(loss) from other economic flows 3 203

Note 9 Assets

Assets are recognised in the Statement of Financial Position when it is probable that the future economic

benefits will flow to the Department and the asset has a cost or value that can be measured reliably.

9.1 Receivables

The Department recognises receivables at amortised cost using the effective interest method. Any

subsequent changes are recognised in the net result for the year when impaired, derecognised or through

the amortisation process. The Department recognises an allowance for expected credit losses for all debt

financial assets not held at fair value through profit and loss. The expected credit loss is based on the

difference between the contractual cash flows and the cash flows that the entity expects to receive,

discounted at the original effective interest rate.

For trade receivables, the Department applies a simplified approach in calculating expected credit losses. The

Department recognises a loss allowance based on lifetime expected credit losses at each reporting date. The

Department has established a provision matrix based on its historical credit loss experience for trade

receivables, adjusted for forward-looking factors specific to the receivable.

2019 $'000

Receivables 9 787

Less: Expected credit loss ( 820)

Total 8 967

Sales of goods and services (inclusive of GST) 7 431

Tax assets 1 536

Total 8 967

Settled within 12 months 8 967

Total 8 967


Reconciliation of movement in expected credit loss for receivables

2019 $'000

Carrying amount at 1 July under AASB 9 0

Net transfers through restructure 856

Amounts restated through Accumulated Funds on restructure ( 33)

Amounts written off during the year ( 783)

Increase/(decrease) in provision recognised in profit or loss 780

Carrying amount at 30 June 820

For ageing analysis of the financial assets, refer to note 14.1

9.2 Loan advances

Loan advances are borrowings provided to clients for the purchase of homes and are recognised as

the balance of the outstanding principal less any impairment losses.

2019 $'000

Loan Advances

Loan advances 854

Less: Provision for impairment ( 5)

Total 849

Settled within 12 months 195

Settled in more than 12 months 654

Total 849

Loan advances include financial assistance provided by the Government to individual purchasers in the

form of loans. The provision for impairment is the result of an audit undertaken by an external entity.


9.3 HomeShare Investments

The Director of Housing holds investments via the HomeShare Program.

HomeShare investments are initially recorded at cost with any changes in the fair value being recorded as

income or expenses in the Statement of Comprehensive Income. HomeShare investments are not

depreciated and are revalued on a biennial basis using information provided by the Valuer-General.

2019 $'000

HomeShare investments

Transfer on restructure 17 718

Add: Additions 4,675

Less: Disposals ( 2 488)

19 905

Fair value increment/(decrement) 2,732

Home share investment 22 637

Less: Provision for impairment ( 55)

Total 22 582

Settled in more than 12 months 22 582

Total 22 582

In 2018-19 these assets had a revaluation gain of $2.732 million which is included in other economic flows

in the Statement of Comprehensive Income (net result).

44 HomeShare investments were disposed of during 2019, and the relevant gain on sale of $441 000 is

disclosed in Note 8.3.

9.4 Other financial assets

Other financial assets are recorded at fair value.

2019 $'000

Accrued revenue 253

Inter entity balance 78

Total 0 331

Settled within 12 Months 331

Total 331

The Inter entity balance comprises goods and services tax settlement entries arising from interaction

between the Department and the Tasmanian Community Fund.


9.5 Assets held for sale

Assets held for sale (or disposal groups comprising assets and liabilities) that are expected to be recovered

primarily through sale rather than continuing use are classified as held for sale. Immediately before

classification as held for sale, the assets (or components of a disposal group) are remeasured at the lower

of carrying amount and fair value less costs to sell.

(a) Carrying amount

2019 $'000

Land 4 850

Buildings 335

Total

0 5 185



Total 5 185

Assets held for sale include residential dwellings from the public housing portfolio identified for sale as part of

the ongoing Strategic Asset Management Plan (SAMP). Where appropriate, existing dwellings may be offered

for sale to the sitting tenants supported by government programs such as the HomeShare Shared Equity Sales

Program or the Streets Ahead Assistance Program. All remaining properties are offered for sale through the

open market, with all properties sold at a minimum of the market value as assessed by the Valuer General. All

proceeds from the sale of these assets will be reinvested into the housing portfolio.

Assets held for sale include 4 properties and 75 blocks of vacant land.

All Assets held for sale as at 30 June 2018 were sold during the year, including 7 properties and 4 blocks of

vacant land.

(b) Fair value measurement of Assets held for sale (including fair value levels)

Carrying value at 30 June

$'000

Fair value measurement at end of reporting period

2019 Level 1 $'000

Level 2 $'000

Level 3 $'000

Land 4 850 0 4 850 0 Buildings 335 0 335 0

Total 5 185 0 5 185 0

9.6 Property, Plant and Equipment

Key estimate and judgement

(i) Valuation basis

Land is recorded at fair value and is not depreciated. Buildings, rental dwellings and community housing

stock are recorded at fair value less accumulated depreciation. All other non-current physical assets,

including work in progress, are recorded at historic cost less accumulated depreciation and accumulated

impairment losses. All assets within a class of assets are measured on the same basis.

Cost includes expenditure that is directly attributable to the acquisition of the asset. The costs of self-

constructed assets includes the cost of materials and direct labour, any other costs directly attributable to

bringing the asset to a working condition for its intended use, and the costs of dismantling and removing

the items and restoring the site on which they are located. Purchased software that is integral to the

functionality of the related equipment is capitalised as part of that equipment.

When parts of an item of property, plant and equipment have different useful lives, they are accounted for

as separate items (major components) of property, plant and equipment.

Fair value is based on the highest and best use of the asset. Unless there is an explicit Government policy to

the contrary, the highest and best use of an asset is the current purpose for which the asset is being used

or occupied.

(ii) Subsequent costs

The cost of replacing part of an item of property, plant and equipment is recognised in the carrying amount

of the item if it is probable that the future economic benefits embodied within the part will flow to the

Department and its costs can be measured reliably. The carrying amount of the replaced part is

derecognised. The costs of day-to-day servicing of property, plant and equipment are recognised in the

Statement of Comprehensive Income as incurred.

(iii) Asset recognition threshold

The asset capitalisation threshold adopted by the Department are:

Vehicles $10 000

Plant and equipment $10 000

Land and buildings $10 000

Intangibles $50 000

Artwork $10 000

Assets valued at less than $10 000 (or $50 000 for intangible assets) are charged to the Statement of

Comprehensive Income in the year of purchase (other than where they form part of a group of similar items

which are material in total).


(iv) Revaluations

Prior to transfer the Department's land and building assets (excluding Housing Tasmania) were revalued

independently by the Valuer-General of Tasmania as at 30 June 2018. These assets were valued in

accordance with the Australian Accounting Standards (AASB 116 Property, Plant and Equipmen t) and

Treasurer's Instructions (TI 303 and TI 206). In 2019 these assets received a desktop indice valuation

based on a review of market movement (Level 2 hierarchy) and construction cost (Level 3 hierarchy)

undertaken by the Valuer-General of Tasmania for the period 1 July 2018 and 30 June 2019.

Revaluations are shown on a gross basis where a replacement cost basis of valuations has been used. Asset

revaluations based on a market basis are disclosed on a net basis; however the Department has

endeavoured to obtain replacement cost valuations where possible to enable gross values to be disclosed.

In accordance with the Department's revaluation policy, the next valuation for these assets will take place

in four years time with the Valuer-General assisting in the determination of Adjusted Interim Carrying

Amounts for the real property for the interim four financial years.

Housing Tasmania's land and building assets (excluding vacant land) are revalued biennially as at 1 July using

a mix of valuations and/or updated suburb based indices adjustments. This revaluation cycle aligns with the

Valuer-General's practice of updating capital values every two years. These assets were revalued this year

with the next valuation occurring during the financial year ending 30 June 2021.

a) Carrying amount

2019 $'000

Land

Housing vacant land at fair value 38 554

Communities Tasmania land at fair value 9 364

Total land 0 47 918

Buildings

Communities Tasmania buildings at fair value 116 851

Less: Accumulated depreciation ( 64 377)

Total DHHS Buildings 0 52 474

Rental dwellings

Rental dwellings buildings at fair value 1 169 324


Total Rental Dwellings Buildings 0 1 146 316

Rental dwellings land at fair value 566 570

Total rental dwellings #VALUE! 1 712 886

Community housing stock

Community housing buildings at fair value 58 829


Total Community housing stock buildings 0 57 651

Community housing land at fair value 8 164

Total community housing stock #VALUE! 65 815

Plant, equipment and vehicles

At cost 2 352


Total plant, equipment and vehicles 0 466

Work in progress

Buildings 47 239

Plant, equipment and vehicles 178

Total work in progress 0 47 417

Total Property, plant and equipment #VALUE! 1 926 976


b) Reconciliation of movements (including fair value levels)

Reconciliations of the carrying amounts of each class of Property, Plant and Equipment at the beginning and

end of the current and previous financial year are set out below. Carrying value means the net amount

after deducting accumulated depreciation and accumulated impairment losses.

2019

Community housing

stock Rental

Dwellings Land Buildings

Plant, equipment & vehicles

Works in progress Total

Level 2 Level 2 Level 2 Level 3

$'000 $'000 $'000 $'000 $'000 $'000 $'000

Carrying value at 1 July 0 0 0 0 0 0 0

Net transfers through restructuring 39 234 1 377 293 48 256 52 930 572 47 304 1 565 589

Additions 0 0 0 0 0 29 849 29 849

Disposals 0 ( 3 287) ( 1 710) 0 0 0 ( 4 997)

Revaluation increments (decrements) 14 596 350 833 6 827 417 0 0 372 673

Assets held for sale 0 ( 177) ( 4 605) 0 0 0 ( 4 782)

Grants transfers (refer Note 7.4) 0 0 ( 2 744) 0 0 0 ( 2 744) Transfers between classes 0 163 ( 163) 0 0 0 0

WIP transfers 13 124 11 123 2 057 1 000 13 ( 27 317) 0

WIP expensed 0 0 0 0 0 ( 2 419) ( 2 419)

Depreciation ( 1 139) ( 23 062) 0 ( 1 873) ( 119) 0 ( 26 193)

Carrying value at 30 June 65 815 1 712 886 47 918 52 474 466 47 417 1 926 976

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an

orderly transaction between market participants at measurement date. It is based on the principle of exit

price, and refers to the price an entity expects to receive when it sells an asset, or the price an entity

expects to pay when it transfers a liability.

Valuation techniques used to measure fair value seek to maximise the use of relevant observable inputs and

minimise the use of unobservable inputs. Valuation techniques are classified based on the level of use of

observable versus unobservable inputs as follows:

Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the

entity can access at the measurement date.

Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset

or liability either directly or indirectly.

Level 3 inputs are unobservable inputs for the asset or liability. Unobservable inputs shall be used to

measure fair value to the extent that relevant observable inputs are not available.

c) Level 3 significant valuation inputs and relationship to fair value

Description

Fair Value at

30 June $'000

Significant unobservable inputs used in valuation

Possible alternative values for level 3 inputs

Sensitivity of fair value to changes in level 3 inputs

Buildings 52 478 A - Construction costs B - Age and condition of asset C - Remaining useful life

When valuing these assets, their existing and alternative uses are taken into account by valuers. As a result, it is unlikely that alternative values will arise unless there are changes in known inputs.

Tasmanian construction indexes have remained stable over the last 12 months. Design and useful lives are reviewed regularly but generally remain unchanged. As a result, it is unlikely that significant variations in values will arise in the short term.


9.7 Intangibles

An intangible asset is recognised where:

• it is probable that an expected future benefit attributable to the asset will flow to the Department; and

• the cost of the asset can be reliably measured.

Intangible assets held by the Department are valued at fair value less any subsequent accumulated

amortisation and any subsequent accumulated impairment losses where an active market exists. Where no

active market exists, intangible assets held by the Department are valued at cost less any subsequent

accumulated amortisation and any subsequent accumulated impairment losses.

Intangible assets with a finite useful life held by the Department principally comprise computer software.

a) Carrying amount

2019 $'000

Intangibles with a finite useful life

Other non-current assets at cost 2 946

Less: Accumulated amortisation ( 1 904)

Total 0 1 042

Capital work in progress 1 788

Total Intangibles #VALUE! 2 830

b) Reconciliation of movements

2019 $'000

Carrying amount at 1 July 0

Net transfers through restructuring 3 083

Intangible assets - purchases 35

Work in progress at cost 181

WIP expensed ( 35)

Amortisation - intangible assets ( 434)

Carrying amount at 30 June 2 830

9.8 Other assets

Other assets, which consists of prepayments, are valued at cost due to the short timeframe over

which the benefits embodied in the asset will be utilised.

a) Carrying amount

2019 $'000

Prepayments 57

Total 57

Recovered within 12 months 57

Recovered in more than 12 months 0

57

Prepayments include Tasmanian Institute of Sport equipment.

b) Reconciliation of movements

2019 $'000


Additions 57

Utilised 0



Note 10 Liabilities

Liabilities are recognised in the Statement of Financial Position when it is probable that an outflow of

resources embodying economic benefits will result from the settlement of a present obligation and the

amount at which the settlement will take place can be measured reliably.

10.1 Payables

Payables, including goods received and services incurred but not yet invoiced, are recognised at amortised

cost, which due to the short settlement period, equates to face value, when the Department becomes

obliged to make future payments as a result of a purchase of assets or services.

2019 $'000

Creditors 7 750

Accrued expenses 21 373

Total 29 123



Total 29 123

Accrued expenses predominantly includes the state contribution towards the National Disability Insurance

Scheme.

Settlement is usually made within 28 days.

10.2 Interest bearing liabilities

Bank loans and other loans are initially measured at fair value, net of transaction costs. Bank loans and

other loans are subsequently measured at amortised cost using the effective interest rate method, with

interest expense recognised on an effective yield basis.

The effective interest rate method is a method of calculating the amortised cost of a financial liability and

allocating interest expense over the relevant period. The effective interest rate is the rate that exactly

discounts estimated future cash payments through the expected life of the financial liability, or where

appropriate, a shorter period.

Subsequent to 30 June 2019, the Australian Government has agreed to waive all future principal and

interest repayments relating to the former Commonwealth State Housing Agreement debt. This is on the

condition that the full amount of former principal and interest repayments is applied to new housing

support, access and supply. Refer to Note 19 for further detail.

2019 $'000

Loans from Commonwealth Government 157 600

Total

0 157 600



Liabilities for wages and salaries and annual leave are recognised when an employee becomes entitled to

receive a benefit. Those liabilities expected to be realised within 12 months are measured as the amount

expected to be paid. Other employee entitlements are measured as the present value of the benefit at 30

June, where the impact of discounting is material and at the amount expected to be paid if discounting is

not material.

A liability for long service leave is recognised, and is measured as the present value of expected future

payments to be made in respect of services provided by employees up to the reporting date.

2019 $'000

Accrued salaries 3 869

Annual leave 5 530


Other employee benefits 175

Total 0 21 015

Expected to settle wholly within 12 months 10 996

Expected to settle wholly after 12 months 10 019

Total 0 21 015

Other employee benefits is comprised of Purchased Leave and State Service Accumulated Leave Scheme

entitlements.

10.4 Superannuation

(i) Defined contribution plans

A defined contribution plan is a post‑employment benefit plan under which an entity pays fixed

contributions into a separate entity and will have no legal or constructive obligation to pay further

amounts. Obligations for contributions to defined contribution plans are recognised as an expense when

they fall due.

(ii) Defined benefit plans

A defined benefit plan is a post‑employment benefit plan other than a defined contribution plan.

Key estimate and judgement

With the exceptions noted below, the Department does not recognise a liability for the accruing

superannuation benefits of State Service employees. This liability is held centrally within Government and is

recognised within the Finance‑General Division of the Department of Treasury and Finance.

The Director of Housing’s superannuation obligations, in respect of the contributory service of current and

past government employees, are recognised at the latest actuarial assessment of the members’ entitlements,

net of scheme assets. The valuation is determined by discounting to present value, the gross benefit payments

at a current, market-determined, risk-adjusted discount rate appropriate to the respective plan.

Actuarial gains or losses arising from the actuarial revaluation of Housing Tasmania superannuation liabilities

are recognised in the Statement of Comprehensive Income.

a) Type of plan

Housing Tasmania Superannuation Provision

Housing Tasmania is required to meet the emerging cost of pension payments paid in respect of retired

employees, where those employees had a superannuation entitlement that accrued before 1 July 1994.

The State Actuary undertook a revaluation of the present value of the benefit obligation and the fair value

of the plan assets as at 30 June 2019 using the process outlined in AASB 119 Employee Benefits issued

on September 2011. As a result of the revaluation it was determined that the Housing Tasmania

Superannuation Provision was in deficit by $8.0 million (2018: $7.4 million deficit).

The valuation of the superannuation liability relates to the entitlements that accrued before 1 July 1994 for

current employees of Housing Tasmania who are members of the Retirement Benefits Fund

Contributory Scheme and former employees who were either contributors or non-contributors and

who have retained benefits or are current pensioners.


b) Reconciliation of movements in Present value of superannuation liability

Housing Tasmania Superannuation

Provision Total Liability

2019 $'000

2018 $'000

2019 $'000

2018 $'000

Balance at 1 July

0 0 0 0

Net transfers through restructuring

7 416 0 7 416 0

Included in profit or loss

Interest cost

213 0 213 0

213 0 213 0

Included in other comprehensive income

Re-measurement loss (gain):

Actuarial loss (gain) 966 0 966 0

Actuarial gains/(losses)

966 0 966 0

Other

Employer contributions ( 609) 0 ( 609) 0

( 609) 0 ( 609) 0

Balance at 30 June

7 986 0 7 986 0

c) Reconciliation of the Fair Value of Scheme Assets

2019 $'000

2018 $'000

Fair value of scheme assets at beginning of the year

0 0

Employer contributions 609 622

Benefits paid ( 609) ( 622)

Fair value of scheme assets at end of the year

0 0

d) Reconciliation of the Defined Benefit Obligation

2019 $'000

2018 $'000

Present value of defined benefit obligations at beginning of the year 7 416 11 869

Interest cost 213 381

Actuarial loss (gain) 966 ( 4 212)

Benefits paid 609 622

Present value of defined benefit obligations at end of the year 7 986 7 416

e) Fair Value of Scheme Assets

Housing Tasmania Superannuation Provision do not have any plan assets due to members being part

of the RBF Contributory Scheme.

f) Significant Actuarial Assumptions at the Reporting Date

Assumptions to Determine Defined Benefit Cost

Housing Tasmania

Superannuation Provision

2019 %

2018 %

Discount rate

3.00 3.30

Future rate of salary increases

3.00 3.00

Future rate of increase of compulsory preserved amounts

3.00 3.00

Inflation (pension)

2.50 2.50

Assumptions to Determine Defined Benefit Obligation

Housing Tasmania

Superannuation Provision

2019

% 2018

%

Discount rate

1.80 3.00


3.00 3.00


3.00 3.00

Inflation (pension)

2.50 2.50

As at 30 June 2019 the weighted average duration of the defined benefit obligation for Housing was

11.2 years (2018: 10.5 years).


g) Sensitivity analysis


The defined benefit obligation as at 30 June 2019 is presented below under several scenarios.

Scenario A and B relate to discount rate sensitivity. Scenario C and D relate to expected pension increase

rate sensitivity.

Scenario A : 1% pa lower discount rate assumption

Scenario B : 1% pa higher discount rate assumption

Scenario C : 1% pa lower than expected pension increase rate assumption

Scenario D : 1% pa higher than expected pension increase rate assumption

Defined benefit obligation Base Case Scenario A Scenario B Scenario C Scenario D

-1.0% pa

discount

rate

+1.0% pa

discount rate

-1.0% pa

pension

increase rate

+1.0% pa

pension

increase

rate

Discount rate (% pa)

Pension increase rate (% pa)

Defined Benefit obligation (A$'000s)

The defined benefit obligation has been recalculated by changing the assumptions as outlined above,

whilst retaining all other assumptions.

h) Funding arrangements

Contributions to the Housing Tasmania Superannuation Provision in respect of defined benefit schemes

are made on an emerging cost basis.

The Department expects to make a contribution of $622 000 (2018: $644 000) for the Housing Tasmania

Superannuation Provision during the next financial year.

1.80 1.30 2.30 1.80 1.80

2.50

7,986

2.50

8,960

2.50

7,181

1.50

7,211

3.50

8,902

10.5 Other liabilities

Other liabilities and other financial liabilities are recognised in the Statement of Financial Position when it is

probable that an outflow of resources embodying economic benefits will result from the settlement of a

present obligation and the amount at which the settlement will take place can be measured reliably.

Other liabilities include revenue received in advance and on-costs associated with employee benefits.

Revenue received in advance is measured at amortised cost. On-costs associated with employee benefits

expected to be realised within 12 months are measured at the amount expected to be paid. Other on-

costs associated with employee benefits are measured at the present value of the cost at 30 June 2019,

where the impact of discounting is material, and at the amount expected to be paid if discounting is not

material.

2019 $'000

Revenue received in advance

Appropriation carried forward from current and previous years under section 8A(2) of the Public Account Act 1986 6 942

Other revenue received in advance 5 936

Other Liabilities Employee benefits - on-costs 768

Inter entity balance 2 255

Other liabilities 188

Total 16 089

Settled within 12 months 15 653 Settled in more than 12 months 436

Total 16 089

The Inter entity balance comprises transactions arising from interaction between the Department and the

Department of Health, including goods and services tax settlement entries.

Other liabilities primarily represents estimated legal costs offset by GST at settlement.


Note 11 Commitments and Contingencies

11.1 Schedule of Commitments

2019 $'000

By Type

Capital Commitments

Property, Plant and Equipment 77

Housing Tasmania 49 288

Other Capital Commitments 49 365

Operating Lease Commitments

Rent on Buildings 5 426

Motor Vehicles 318

Total Lease Commitments 5 744

Other Commitments

Miscellaneous Grants 200 437

CSHA Debt Interest 72 578

Miscellaneous Goods and Services contracts 13 638

Total Other Commitments 286 653

Total 341 762

By Maturity

Capital Commitments

One year or less 49 365

Total Capital Commitments 49 365



From one to five years 3 487

More than five years 167

Total Operating Lease Commitments 5 744

Other Commitments


From one to five years 130 558

More than five years 41 031

Total Other Commitments 286 653

Total 341 762

Property, plant and equipment

Property, plant and equipment commitments include commitments to transfer properties to Mission

Australia Housing under Stage 1 of the Better Housing Futures Agreement.

Rent on Buildings

The Department leases a range of properties/tenancies around the State for service delivery purpose.

Housing Tasmania

Housing Tasmania commitments relate to capital works under the Affordable Housing Strategy Action

Plan 2019- 2023 (Action Plan 2).

Motor Vehicles

The Government Motor Vehicle Fleet is managed as part of a Whole-of-Government arrangement with

the Department of Treasury and Finance as lessor. Lease payments vary according to the type of vehicle

and, where applicable, the price received for trade-in vehicles. Lease terms for the majority of existing

vehicles are for a period of three years or 60 000 km’s, whichever comes first, with no change to the

lease rate. No restrictions or purchase options are contained in the lease.

CSHA Debt Interest

The Commonwealth State Housing Agreement Debt Interest relates to interest on loans from the

Commonwealth which is disclosed in Note 7.5.

The Australian Government has agreed to waive all future principal and interest repayments relating to

the former Commonwealth State Housing Agreement debt. This is on the condition that the full amount

of former principal and interest repayments is applied to new housing support, access and supply. Refer

to Note 19 for further detail.

Miscellaneous Grants

Miscellaneous Grants includes grant programs under Children and Youth Services, Community Support

Program, Disability Services and Housing Tasmania.

Miscellaneous goods and services contracts

Miscellaneous goods and services contracts primarily includes contracts for Special Care Packages with

Out of Home Care Service Providers ($13.232 million). It also includes contracts with the Australian

Institute of Health and Welfare and FOYERS, which is a youth supported accommodation program.


11.2 Contingent assets and liabilities

Contingent assets and liabilities are not recognised in the Statement of Financial Position due to

uncertainty regarding any possible amount or timing of any possible underlying claim or obligation.

a) Quantifiable contingencies

A quantifiable contingent asset is any possible asset that arises from past events and whose existence

will be confirmed only by the occurrence or non-occurrence of one or more uncertain future

events not wholly within the control of the entity.

A quantifiable contingent liability is any possible obligation that arises from past events and whose

existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain

future events not wholly within the control of the entity; or any present obligation that arises from

past events but is not recognised because it is not probable that an outflow of resources embodying

economic benefits will be required to settle the obligation. To the extent that any quantifiable

contingencies are insured, details provided below are recorded net.

2019 $'000

Quantifiable contingent liabilities

Contingent claims

Legal Claims 783

Total quantifiable contingent liabilities 783

Quantifiable contingent assets

Community housing properties 36 978

Less accumulated depreciation ( 484)

Better Housing Futures properties 531 143

Less accumulated depreciation ( 7 621)

Total quantifiable contingent assets 560 016

Legal Claims

At 30 June 2019, the Department had some legal claims against it for other liability claims. These claims are

reported at the estimated net cost to the Department.

The Department manages its legal claims through the Tasmanian Risk Management Fund (TRMF). An excess

of $50 000 remains payable for every claim and amounts over that excess are met by the TRMF.

Community Housing

Quantifiable contingent assets represent assets that are currently not under the control of the Department

but it is probable that control will return to the Department in the future.

Quantifiable contingent assets represent dwellings for which the legal title is retained by Housing Tasmania,

however tenancy and property management have been transferred to CHOs, including Mission Australia,

Centacare Evolve Housing (CEH) and Housing Choices Tasmania.

These properties, which have been disclosed in previous years, will come onto the Balance Sheet in 2019-20

as per the new Accounting Standard AASB 1059 Service Concession Assets .

b) Unquantifiable contingencies

Better Housing Futures (BHF)

Under the Residential Management Agreement (RMA), where there is damage to a property valued at

$50 000 or more, Housing Tasmania will consider transferring title of a dwelling to the CHOs. Where

Housing Tasmania transfers title of a damaged property to the CHO, the CHO pays $20 000 to Housing

Tasmania as well as stamp duty, registration fees, the organisations legal fees and disbursements arising

from the transfer.

As at 30 June 2019, a total of 8 vacant land lots have been transferred to the CHOs with a recorded value

of $861 000.


Note 12 Reserves

12.1 Reserves

2019

Community housing

stock Rental

Dwellings Land Buildings Artwork Total

$'000 $'000 $'000 $'000 $'000

Asset revaluation reserve

Balance at the beginning of financial year 0 0 0 0 0 0

Create ARR on restructure ( 6 984) 240 653 12 592 21 785 6 268 052

Transfers to accumulated surplus 0 ( 1 565) ( 1 038) 0 0 ( 2 603)

Revaluation increments/(decrements) 14 598 352 186 5 798 417 0 372 999

Balance at the end of financial year 7 614 591 274 17 352 22 202 6 638 448

a) Nature and purpose of reserves


The Asset revaluation reserve is used to record increments and decrements on the revaluation of

non‑financial assets, as described in Note 9.6.

12.2 Administrative Restructuring

The administrative restructure of the DHHS and the DPAC were enacted pursuant to the State Service


created.

The administrative restructure of DHHS and DPAC resulted in the following assets and liabilities being

transferred to DCT on 1 July 2018. In relation to transferred administered activities there were no

administered assets or liabilities held by DPAC as at 30 June 2018. Details of the establishment of DCT

can be found at Note 1.1.

Outputs transferred

from the DHHS

Outputs transferred

from the DPAC Total

$'000 $'000 $'000

Assets

Financial assets

Cash and deposits 71 623 1 048 72 671

Receivables 1 277 76 1 353

Loan advances 1 158 0 1 158

HomeShare investments 17 633 0 17 633

Other financial assets 806 0 806


Assets held for resale 2 033 2 033

Property, plant and equipment 1 533 785 31 803 1 565 588

Intangibles 3 083 0 3 083

Other assets 54 6 60

Total assets 1 631 452 32 933 1 664 385

Liabilities

Payables 8 869 1 131 10 000

Interest bearing liabilities 165 515 0 165 515

Employee benefits 17 586 1 334 18 920

Superannuation 7 416 0 7 416

Other liabilities 11 100 18 11 118

Total liabilities 210 486 2 483 212 969

Net assets 1 420 966 30 450 1 451 416

Represented by:

Asset revaluation reserve 264 337 3 715 268 052

Accumulated funds 1 156 629 26 735 1 183 364

1 420 966 30 450 1 451 416


Note 13 Cash Flow Reconciliation

Cash means notes, coins, any deposits held at call with a bank or financial institution, as well as funds held

in the Special Deposits and Trust Fund, being short term of three months or less and highly liquid.

Deposits are recognised at amortised cost, being their face value.

13.1 Cash and deposits

Cash and deposits includes the balance of the Special Deposits and Trust Fund Accounts held by the

Department, and other cash held, excluding those accounts which are administered or held in a trustee

capacity or agency arrangement.

2019 $'000

Special Deposits and Trust Fund balance

T540 DCT Operating Account 92 159

Total 92 159

Other cash held

Other cash equivalents not included above 14

Total 14

Total cash and deposits 92 173

Other cash equivalents primarily represents petty cash and cash floats.

b) Reconciliation of Net Result to Net Cash from Operating Activities

2019 $'000


2 376


26 627

Recognition of assets as a result of stocktake/donations

( 40)


( 8 208)

Capital grants expense

2 744

WIP expensed

2 454

Expected credit losses

( 780)

Transfer of assets due to restructure

( 45 203)

Net actuarial gains/(losses) of superannuation defined benefit plans

( 966)

Decrease (increase) in Receivables

( 8 967)

Decrease (increase) in Other assets

( 388)

Increase (decrease) in Employee entitlements

21 015

Increase (decrease) in Superannuation

7 986

Increase (decrease) in Payables

29 123

Increase (decrease) in Other liabilities

16 089

Net cash from/(used by) operating activities

43 862

13.3 Acquittal of Capital Investment and Special Capital Investment Funds

The Department received Works and Services Appropriation funding and revenues from Special Capital

Investment Funds to fund specific projects.

Cash outflows relating to these projects are listed below by category.

Budget information refers to original budget estimates in the 2018-19 Budget Papers and has not been

subject to audit.

a) Project expenditure

2019 Budget $'000

2019 Actual $'000


92998 - Affordable Housing Strategy Projects Affordable Housing Strategy Stage 1 20 000 20 000

92002 - Affordable Housing Affordable Housing Strategy Stage 2 25 000 19 150

92003 - AYDC Redevelopment AYDC Redevelopment 1 000 163

92101 - Silverdome Redevelopment Silverdome Redevelopment 0 1 023

92892 - Housing - New Projects Housing – New Projects 9 297 15 263

92922 - Non-Works Housing Housing – Debt Repayment and Other 7 915 7 915

92976 - Northern Suburbs Community Centre Northern Suburbs Community Centre 1 000 1

Total Capital Investment Program 64 212 63 515

2019 Budget $'000

2019 Actual $'000


Housing Fund

614900 Housing Fund National Rental Affordability Scheme 1 053 406

Total Special Capital Investment Fund 1 053 406

Total 65 265 63 921


b) Classification of cash flows

The project expenditure above is reflected in the Statement of Cash Flows as follows.

2019 $'000

Cash outflows

Employee benefits 541

Supplies and consumables 5 573

Grants 19 859

Payments for acquisition of assets 30 033

Debt repayment 7 915

Total cash outflows 63 921

13.4 Financing Facilities

As at 30 June 2019, the Department held outstanding debt to the Australian Government under the

Commonwealth-State Housing Agreement (CSHA). Under the CSHA the Australian Government made

advances to states to provide financial assistance for building new public housing and low interest loans to

home builders, as well as a range of other housing-related purposes.

These loans had been provided at a fixed interest rate discounted from the long term prevailing market rate

and the repayments structured so as to allow the loans to be fully repaid over a term of 53 years.

Post the reporting date the Australian Government agreed to waive all future principal and interest

repayments relating to the former CSHA debt. This is on the condition that the full amount of former

principal and interest repayments is applied to new housing support, access and supply. Refer to Note 19

for further detail.

13.5 Reconciliation of liabilities arising from financing activities

Liabilities arising from financing activities are liabilities for which cash flows were, or future cash flows will be,

classified in the Statement of Cash Flows as cash flows from financing activities.

2019 Borrowings

Lease liabilities

$'000 $'000

Balance as at 1 July 2018 0 0

Transfers to / (from) other Government entity 165 515 0

Changes from financing cash flows:

Cash Repayments ( 7 915) 0

Balance as at 30 June 2019 157 600 0

Note 14 Financial Instruments

14.1 Risk Exposures

a) Risk management policies

The Department has exposure to the following risks from its use of financial instruments:

• credit risk;

• liquidity risk; and

• market risk.

The Head of Agency has overall responsibility for the establishment and oversight of the Department’s risk

management framework. Risk management policies are established to identify and analyse risks faced by the

Department, to set appropriate risk limits and controls and to monitor risks and adherence to limits.

b) Credit risk exposures

Credit risk is the risk of financial loss to the Department if a customer or counterparty to a financial

instrument fails to meet its contractual obligations.

Financial Instrument

Accounting and strategic policies (including recognition criteria and

measurement basis and credit quality

of instrument)

Nature of underlying instrument (including significant terms and conditions affecting

the amount, timing and certainty of cash flows)

Financial Assets Loans and Receivables

Loans and Receivables are recognised at the nominal amounts due, less any provision for impairment.

Receivables credit terms are generally 45 days. Loan advances are secured by a mortgage over real property.

Collectability of debts is reviewed on a monthly basis. Provisions are made when the collection of the debt is judged to be less rather than more likely.


HomeShare Investments are recognised at the Department's proportional share of the fair value of the underlying property value, less any provision for impairment. These investments are revalued on a biennial basis.

HomeShare investments credit terms require the repayment of the Departmental HomeShare interest in a land and building asset, in cash, within a maximum term of 30 years.


Other financial assets are recognised at the nominal amounts due, less any provision for impairment.

Other financial assets credit terms are generally 45 days.

Cash and deposits Cash and deposits are recognised at face value.

Cash means notes, coins and any deposits held at call with a bank or financial institution.

The Department has made no changes to its credit risk policy during 2018-19. The Department does not

hold any security instrument for its Cash and Deposits, Other financial assets and Receivables.

No credit terms on any departmental financial assets have been renegotiated.


The carrying amount of financial assets recorded in the Financial Statements, net of any allowances for

losses, represents the Department's maximum exposure to credit risk without taking into account any

collateral or other security.

Receivables age analysis - expected credit loss

The simplified approach to measuring expected credit losses is applied, which uses a lifetime expected

loss allowance for all trade receivables.

The expected loss rates are based on historical observed loss rates adjusted for forward looking factors

that will have an impact on the ability to settle the receivables. The loss allowance for trade debtors as

at 30 June 2019 and 1 July 2018 (adoption of AASB 9) are as follows.

Sundry Receivables

Expected credit loss analysis of receivables as at 30 June 2019

Not past due

Past due

1-30

days

Past due

31–60

days

Past due

61–90

days

Past due

> 91+

days

Total

$'000 $'000 $'000 $'000 $'000 $'000

Expected credit loss rate (A) 0.0017 0.0030 0.0213 0.1297 0.0952 0.2509

Total gross carrying amount (B) 3 930 311 1 5 88 4 335

Expected credit loss (A x B) 7 1 0 1 8 17

Housing Tasmania Rental Receivables

Expected credit loss analysis of receivables as at 30 June 2019

Not past due

Past due

1-30

days

Past due

31–60

days

Past due

61–90

days

Past due

> 91+

days

Total

$'000 $'000 $'000 $'000 $'000 $'000

Expected credit loss rate (A) 0.5238 0.5238

Total gross carrying amount (B) 1 533 1 533

Expected credit loss (A x B) 803 803

Sundry Receivables

Expected credit loss analysis of receivables as at 1 July 2018

Not past due

Past due

1-30

days

Past due

31–60

days

Past due

61–90

days

Past due

> 91+

days

Total

$'000 $'000 $'000 $'000 $'000 $'000

Expected credit loss rate (A) 0.0017 0.0030 0.0213 0.1297 0.0952 0

Total gross carrying amount (B) 795 42 110 0 27 974

Expected credit loss (A x B) 1 0 2 0 3 6

Housing Tasmania Rental Receivables

Expected credit loss analysis of receivables as at 1 July 2018

Not past due

Past due

1-30

days

Past due

31–60

days

Past due

61–90

days

Past due

> 91+

days

Total

$'000 $'000 $'000 $'000 $'000 $'000

Expected credit loss rate (A) 0.4778 0.4778

Total gross carrying amount (B) 1 710 1 710

Expected credit loss (A x B) 817 817

c) Liquidity risk

Liquidity risk is the risk that the Department will not be able to meet its financial obligations as they fall

due. The Department’s approach to managing liquidity is to ensure that it will always have

sufficient liquidity to meet its liabilities when they fall due.

Financial Instrument Accounting and strategic policies (including recognition criteria and

measurement basis)

Nature of underlying instrument (including significant terms and

conditions affecting the amount, timing and certainty of cash flows)

Financial Liabilities

Payables

Payables, including goods received and services incurred but not yet invoiced, are recognised at amortised cost, which due to the short settlement period equates to face value, when the Department becomes obliged to make future payments as a result of a purchase of assets or services.


Interest bearing liabilities

Loans are initially measured at fair value net of transaction costs. Loans are subsequently measured at amortised cost using the effective interest rate method, with interest expense recognised on an effective yield basis.

Contractual payments are made in accordance with contractual terms.

Other financial liabilities

Other financial liabilities are recognised at amortised cost, which due to the short settlement period equates to face value, when the Department becomes obliged to make payments as a result of the purchase of assets or services.


The Department regularly reviews budgeted and actual cash outflows to ensure that there is sufficient cash to meet all obligations.

The following tables detail the undiscounted cash flows payable by the Department by remaining

contractual maturity for its financial liabilities. It should be noted that as these are undiscounted, totals

may not reconcile to the carrying amounts presented in the Statement of Financial Position.

Maturity analysis for financial liabilities

1 Year

2 Years

3 Years

4 Years

5 Years

More than

5 Years

Undid-

counted

Total

Carrying

Amount

2019 $ 000 $ 000 $ 000 $ 000 $ 000 $ 000 $ 000 $ 000

Financial liabilities

Payables

7 750

7 750

7 750

Interest bearing

liabilities

8 017

8 122

8 259

8 373

8 450

116 379

157 600

157 600

Other financial

liabilities

0

0

Total 15 767 8 122 8 259 8 373 8 450 116 379 165 350 165 350


d) Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate

because of changes in market prices. The primary market risk that the Department is exposed to is

interest rate risk.

The Department currently has the majority of its financial liabilities at fixed interest rates with the effect

that any exposure to movements in interest rates is minimised.

At the reporting date, the interest rate profile of the Department’s interest bearing financial

instruments was:

2019 $'000

Fixed rate instruments Financial assets 0

Financial liabilities 157 600

Total 157 600

Variable rate instruments Financial assets 849

Financial liabilities 0

Total 849

Changes in variable rates of 100 basis points at reporting date would have the following effect on the

Department’s profit or loss and equity:

Sensitivity Analysis of Department’s Exposure to Possible Changes in Interest Rates

Statement of Comprehensive Income

Equity

100 basis points

increase

100 basis points

decrease

100 basis points

increase

100 basis points

decrease

$'000 $'000 $'000 $'000

30 June 2019

Financial assets

8 ( 8) 8 ( 8) Net Sensitivity

8 ( 8) 8 ( 8)

14.2 Categories of Financial Assets and Liabilities

AASB 9 Carrying amount 2019 $'000

Financial assets

Financial assets at fair value through profit and loss - mandatory classification 130 087

Total 130 087


Financial liabilities measured at amortised cost 165 350

Total 165 350

14.3 Derecognition of Financial Assets

No derecognition of Financial Assets occurred during 2018-19.

14.4 Comparison between Carrying Amount and Net Fair Value of Financial Assets and

Liabilities

Carrying Amount 2019

Net Fair Value 2019

$'000 $'000

Financial assets

Cash at bank

14 14

Cash in Special Deposits and Trust Fund

92 159 92 159


Receivables

8 967 8 967

Loan advances

849 849


22 582 22 582

Available-for-sale financial assets

5 185 5 185

Other

331 331

Total financial assets

130 087 130 087

Financial liabilities (Recognised)

Other financial liabilities

Borrowings

157 600 157 600

Other

7 750 7 750

Total Financial liabilities (Recognised)

165 350 165 350


14.5 Net Fair Values of Financial Assets and Liabilities

Net Fair

Value

Level 1

Net Fair Value

Level 2

Net Fair Value

Level 3

Net Fair

Value

Total

2019 $'000 $'000 $'000 $'000

Financial assets Cash at bank 14 14

Cash in Special Deposits and Trust Fund


92 159 92 159

Receivables Loan

advances


Available-for-sale financial assets Other

Total financial assets

Financial liabilities (Recognised)

Other financial liabilities Borrowings

Other

Total Financial liabilities (Recognised)

The recognised fair values of financial assets and financial liabilities are classified according to the fair value

hierarchy that reflects the significance of the inputs used in making these measurements. The Department

uses various methods in estimating the fair value of a financial instrument. The methods comprise:

Level 1 – the fair value is calculated using quoted prices in active markets;

Level 2 – the fair value is estimated using inputs other than quoted prices included in Level 1 that are

observable for the asset or liability, either directly (as prices) or indirectly (derived from prices); and

Level 3 – the fair value is estimated using inputs for the asset or liability that are not based on observable

market data.

Transfer between categories

The Department did not transfer any Financial Assets or Financial Liabilities between Level 1 and Level 2.

The Department does not have any Level 3 instruments.

Financial Assets

The net fair values of cash and non-interest bearing monetary financial assets approximate their carrying

amounts.

The net fair values of HomeShare investments are based on the Departmental interest in the underlying

land and building assets. An active market exists for the underlying assets that provides for a reliable

measurement of the fair value of the HomeShare investment. The underlying Housing land and building

assets are revalued on a biennial basis using information provided by the Valuer-General.

8 967 8 967

849 849

22 582 22 582

5 185 5 185

331 331

130 087 0 0 130 087

157 600 157 600

7 750 7 750

165 350 0 0 165 350


The net fair values of Borrowings are based on the outstanding value owed by the Department and are

approximated by their carrying amounts.

The net fair values for trade creditors are approximated by their carrying amounts.

Unrecognised Financial Instruments

The net fair values of indemnities are regarded as the maximum possible loss which the Department faces

while the indemnity remains current.

Note 15 Details of Consolidated Entities

15.1 List of Entities

The following entities have been consolidated by the Department:

Director of Housing 100 per cent


Note 16 Associated Entities

16.1 Tasmanian Affordable Housing Limited

On 11 March 2011, the Crown, represented by the Minister for Human Services, became the sole

shareholder of the shares in Tasmanian Affordable Housing Limited (TAHL), thus assuming control of

TAHL as a wholly owned Government entity.

TAHL has not been consolidated into the Department’s financial statements as at 30 June 2019.

The unaudited Statement of Comprehensive Income for the year ending 30 June 2019 and Statement of

Financial Position as at 30 June 2019 are provided below.

Tasmanian Affordable Housing Limited

Statement of Comprehensive Income for the year ending 30 June 2019 2019 $'000

Total Revenue and other income from transactions

28 Expenses from Transactions

Compliance expenses

7

Total expenses from transactions

7


21

Comprehensive Result

21

Statement of Financial Position as at 30 June 2019 2019 $'000

Assets

Cash and cash equivalents

1 380 Trade and other receivables

1

Total assets

1 381

Liabilities

Trade and other payables

5 Provisions

90

Total liabilities

95

Net assets

1 286

Equity

Retained Earnings

1 286

Total equity

1 286

As at 30 June 2019, TAHL no longer had principal activities remaining and is expected to wind up during the

2019- 20 financial year. In accordance with the TAHL constitution, net assets will be distributed via a

competitive process to a like organisation for the delivery of additional social housing.

Note 17 Notes to Administered Statements

17.1 Administered Revenue from Government

2019 $'000


Appropriation revenue - Reserved by Law - Tasmanian Community Fund 6 729

Appropriation revenue - Reserved by Law - Tasmanian Icon - State Cricket Team

500

Total administered revenue from Government

7 229

17.2 Administered Expenses

2019 $'000

Transfer to Tasmanian Community Fund 6 729

Transfer to Tasmanian Icon - State Cricket Team 500

Total administered transfer expenses 7 229

Note 18 Transactions and Balances Relating to a Trustee or Agency

Arrangement

Transactions relating to activities undertaken by the Department in a trust or fiduciary (agency) capacity do

not form part of the Department’s activities. Trustee and agency arrangements, and transactions/balances

relating to those activities, are neither controlled nor administered.

Fees, commissions earned and expenses incurred in the course of rendering services as a trustee or

through an agency arrangement are recognised as controlled transactions.

18.1 Activities Undertaken Under a Trustee or Agency Relationship

Account/Activity Opening balance Net transfers through restructuring

Net transac-

tions during

2018-19 Closing balance

$'000 $'000 $'000 $'000

Legal Trusts 0 5 ( 2) 3


Note 19 Events Occurring After Balance Date

Subsequent to the creation of the Department Communities Tasmania a further resource transfer has been

agreed between the Department of Health and the Department of Communities Tasmania. Under this

agreement, a number of positions from the Community Sector Related Unit will transfer to the

Department of Communities Tasmania from August 2019.



former principal and interest repayments is applied to new housing support, access and supply.

The impact on the Balance Sheet will be to reduce liabilities by the full amount of the loan as at 30 June

2019 ($157.6 million). This will be offset by an increase in contributions received at fair value in the income

statement of the same value.

The Public Sector Union Wages Agreement 2018 was registered by the Tasmanian Industrial Commission

on 19 August 2019. As part of the terms of this Agreement, departmental employees covered by the

Tasmanian State Service Award, are entitled to receive an increase of 2.1 per cent per annum from the pay

period commencing on 13 December 2018.

The Department of Communities Tasmania is expecting to pay this retrospective increase in respect of the

period from 13 December 2018 to 30 June 2019 by the end of October 2019. The estimated amount of

the payment is $904 000.

Note 20 Other Significant Accounting Policies and Judgements

20.1 Objectives and Funding

The Department's objective is to provide opportunities for all Tasmanians to participate in community life

and sport and recreation; support, protect and nurture vulnerable children, young people and their

families; deliver and facilitate specialist disability services; and provide services to support social and

affordable housing.

The Department achieves this through the following strategic priorities: working with communities to offer

all Tasmanians the opportunity to participate positively in community life; working with partners to

identify and pursue early opportunities to improve the wellbeing of individuals, families and communities;

working with families, carers and the community to keep children and young people safe; working

together to continue to build a high performing, committed and engaged organisation; working with

community, sport and recreation organisations to support the growth of strong and sustainable sectors.

Departmental activities are classified as either controlled or administered.

Controlled activities involve the use of assets, liabilities, revenues and expenses controlled or incurred by

the Department in its own right. Administered activities involve the management or oversight by the

Department, on behalf of the Government, of items controlled or incurred by the Government. In the

current financial year there are no administered items.

The Department is a Tasmanian Government not-for-profit entity that is predominantly funded through

Parliamentary appropriations. The Department includes Housing Tasmania. Housing Tasmania derives

rental revenue and asset sale income from Housing Tasmania properties and receives income from

borrowers in the Home Ownership Assistance Program (HOAP). The financial statements encompass all

funds through which the Department controls resources to carry on its functions.

20.2 Basis of Accounting

The Financial Statements are a general purpose financial report and have been prepared in accordance with:

• Australian Accounting Standards and Interpretations issued by the Australian Accounting Standards

Board; and

• The Treasurer’s Instructions issued under the provisions of the Financial Management and Audit Act

1990.

The Financial Statements were signed by the Secretary of the Department on 23 October 2019.

Compliance with the Australian Accounting Standards (AAS) may not result in compliance with International

Financial Reporting Standards (IFRS), as the AAS include requirements and options available to not-for-profit

organisations that are inconsistent with IFRS. The Department is considered to be not-for-profit and has

adopted some accounting policies under the AAS that do not comply with IFRS.

The Financial Statements have been prepared on an accrual basis and, except where stated, are in

accordance with the historical cost convention.

The Financial Statements have been prepared as a going concern. The continued existence of the

Department in its present form, undertaking its current activities, is dependent on Government policy and

on continuing appropriations by Parliament for the Department’s administration and activities.

The Department has made no assumptions concerning the future that may cause a material adjustment to

the carrying amounts of assets and liabilities within the next reporting period.

20.3 Reporting Entity

The Financial Statements include all the controlled activities of the Department, being Housing Tasmania.

Material transactions and balances between the Department and Housing Tasmania have been

eliminated. Summary information relating to Tasmanian Affordable Housing Limited (TAHL) is disclosed

in Note 16 Associated Entities.

The administrative restructure of the DHHS and DPAC were enacted pursuant to the State Service


created. As these financial statements represents the first year of a new entity, no comparative

information has been disclosed.

20.4 Functional and Presentation Currency

These Financial Statements are presented in Australian dollars, which is the Department's functional

currency.


20.5 Changes in Accounting Policies

a) Impact of new and revised Accounting Standards

In the current year, the Department has adopted all of the new and revised Standards and Interpretations

issued by the Australian Accounting Standards Board (AASB) that are relevant to its operations and

effective for the current annual reporting period. These include:

• AASB 7 Financial Instruments: Disclosures - the objective of this Standard is to require

entities to provide disclosures in their financial statements that enable users to evaluate the

significance of financial instruments for the entity’s financial position and performance; and

the nature and extent of risks arising from financial instruments to which the entity is

exposed during the period and at the end of the reporting period, and how the entity mages

those risks. The amendments to this Standard have resulted in a reconciliation being required

where there is a reclassification of financial assets or liabilities resulting from the adoption of

AASB 9. There is no financial impact on the Statements.

• AASB 9 Financial Instruments - the objective of this Standard is to establish principles for the

financial reporting of financial assets and financial liabilities that will present relevant information

to users of financial statements for their assessment of the amounts, timing, uncertainty of an

entity’s future cash flows, and to make amendments to various accounting standards as a

consequence of the issuance of AASB 9. AASB 9 has replaced accounting for impairment losses

with a forward looking expected credit loss approach. The Department has applied AASB 9

retrospectively and, where relevant, to the transfer of assets and liabilities from the former

DHHS and DPAC on 1 July 2018. Any differences arising from the adoption of AASB 9 have been

recognised directly to equity.

b) Impact of new and revised Accounting Standards yet to be applied

The following applicable Standards have been issued by the AASB and are yet to be applied:

• AASB 15 Revenue from Contracts with Customers – The objective of this Standard is to establish the

principles that an entity shall apply to report useful information to users of financial statements about

the nature, amount, timing, and uncertainty of revenue and cash flows arising from a contract with a

customer. In accordance with 2015-8 Amendments to Australian Accounting Standards - Effective

Date of AASB 15, this Standard applies to annual reporting periods beginning on or after 1 January

2019. Where an entity applies the Standard to an earlier annual reporting period, it will disclose that

fact. There is no financial impact expected from the application of this revised standard. The

Department's major sources of income are from Government Appropriation for recurrent

operations, works and services and capital grants. Current operating procedures ensure that revenue

is recognised simultaneously that services have been delivered. This timing of revenue recognition is

the same as the new standard. Review of other revenue sources confirms that there are no instances

where revenue is recognised but the performance obligation under the contract has not been met.

• 2014-5 Amendments to Australian Accounting Standards arising from AASB 15 – The objective of this

Standard is to make amendments to Australian Accounting Standards and Interpretations arising

from the issuance of AASB 15 Revenue from Contracts with Customers . This Standard applies when

AASB 15 is applied, except that the amendments to AASB 9 (December 2009) and AASB 9

(December 2010) apply to annual reporting periods beginning on or after 1 January 2018. This

Standard will be applied when AASB 15 is applied. There is no financial impact expected from the

application of this revised standard as there is no financial impact expected from the implementation

of AASB 15.

• 2016-3 Amendments to Australian Accounting Standards - Clarifications to AASB 15 - The

objective of this Standard is to clarify the requirements on identifying performance obligations,

principal versus agent considerations and the timing of recognising revenue from granting a licence.

This Standard applies to annual periods beginning on or after 1 January 2019. The impact is enhanced

disclosure in relation to revenue. There is no financial impact expected from the application of this

revised standard.

• AASB 16 Leases – The objective of this Standard is to introduce a single lessee accounting model and

require a lessee to recognise assets and liabilities. This Standard applies to annual reporting periods

beginning on or after 1 January 2019. The standard will result in most of the Department’s operating

leases being brought onto the Statement of Financial Position and additional note disclosures. The

calculation of the lease liability will take into account appropriate discount rates, assumptions about

the lease term, and required lease payments. A corresponding right to use asset will be recognised,

which will be amortised over the term of the lease. There are limited exceptions relating to low-value

leases and short-term leases. Operating lease costs will no longer be shown. The Statement of

Comprehensive Income impact of the leases will be through amortisation and interest charges. The

Department’s current operating lease cost is shown at notes 7.3. In the Statement of Cash Flows,

lease payments will be shown as cash flows from financing activities instead of operating activities. It

should be noted that there will be no impact on the Department's cash flow.

It is anticipated that the implementation of the new standard will increase the Department’s assets by

$5.763 million with a corresponding increase in the Department’s liabilities of $5.763 million. This

represents the right to use assets and lease payment obligations associated with building and

equipment leases. It also includes the Department's leased motor vehicles. For 2019-20 financial year,

the annual amortisation expenses is estimated to be $1.282 million with interest expense of $197 000.


• AASB 1058 Income of Not-for-Profit Entities - The objective of this Standard is to establish principles

for not-for-profit entities that apply to transactions where the consideration to acquire an asset is

significantly less than fair value principally to enable a not-for-profit entity to further its objectives,

and the receipt of volunteer services. This Standard applies to annual reporting periods beginning on

or after 1 January 2019. The impact is enhanced disclosure in relation to income of not-for-profit

entities. It should be noted that there will be no impact on the Department's cash flow, statement

of financial position and financial performance.

• AASB 1059 Service Concession Arrangements: Grantors – The objective of this Standard is to prescribe

the accounting for a service concession arrangement by a grantor that is a public sector entity.

This Standard applies on or after 1 January 2020. The impact of this Standard is enhanced

disclosure in relation to service concession arrangements for grantors that are public sector entities.

The financial impact has been assessed as requiring the Department to increase its assets by $560.0

million which represents assets that are currently classed as quantifiable contingent assets and an

increase in annual depreciation expenses of $11.2 million.

20.6 Foreign Currency

Transactions denominated in a foreign currency are converted at the exchange rate at the date of the

transaction. Foreign currency receivables and payables are translated at the exchange rates current as at

balance date.

20.7 Comparative Figures

Given that 2019 is the first year of the reporting entity comparative figures are not reported.

The comparatives for external administrative restructures are not reflected in the Financial Statements.

20.8 Rounding

All amounts in the Financial Statements have been rounded to the nearest thousand dollars, unless

otherwise stated. As a consequence, rounded figures may not add to totals. Amounts less than $500 are

rounded to zero.

20.9 Departmental Taxation

The Department is exempt from all forms of taxation except Fringe Benefits Tax (FBT) and Goods and

Services Tax (GST).

20.1 Goods and Services Tax

Revenue, expenses and assets are recognised net of the amount of Goods and Services Tax, except

where the GST incurred is not recoverable from the Australian Taxation Office. Receivables and

payables are stated inclusive of GST. The net amount recoverable, or payable, to the Australian

Taxation Office is recognised as an asset or liability within the Statement of Financial Position.

In the Statement of Cash Flows, the GST component of cash flows arising from operating, investing or

financing activities which is recoverable from, or payable to, the Australian Taxation Office is, in

accordance with the Australian Accounting Standards, classified as operating cash flows.

Department of Communities Tasmania Email: [email protected]


http://www.communities.tas.gov.au/

…1 of 4

Independent Auditor’s Report To the Members of Parliament Department of Communities Tasmania Report on the Audit of the Financial Statements Opinion I have audited the financial statements of the Department of Communities Tasmania (the Department), which comprise the statement of financial position as at 30 June 2019 and statements of comprehensive income, changes in equity and cash flows for the year then ended, notes to the financial statements, including a summary of significant accounting policies, other explanatory notes and the statement of certification by the Secretary of the Department. In my opinion, the accompanying financial statements:

(a) present fairly, in all material respects, the Department’s financial position as at 30 June 2019 and its financial performance and its cash flows for the year then ended

(b) are in accordance with the Financial Management and Audit Act 1990 and Australian Accounting Standards.

Basis for Opinion I conducted the audit in accordance with Australian Auditing Standards. My responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of my report. I am independent of the Department in accordance with the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (the Code) that are relevant to my audit of the financial statements in Australia. I have also fulfilled my other ethical responsibilities in accordance with the Code. The Audit Act 2008 further promotes the independence of the Auditor-General. The Auditor-General is the auditor of all Tasmanian public sector entities and can only be removed by Parliament. The Auditor-General may conduct an audit in any way considered appropriate and is not subject to direction by any person about the way in which audit powers are to be exercised. The Auditor-General has for the purposes of conducting an audit, access to all documents and property and can report to Parliament matters which in the Auditor-General’s opinion are significant.

…2 of 4

I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my opinion. My audit is not designed to provide assurance on the accuracy and appropriateness of the budget information in the Department’s financial statements. Key Audit Matters Key audit matters are those matters that, in my professional judgement, were of most significance in my audit of the financial report of the current period. These matters were addressed in the context of my audit of the financial report as a whole, and in forming my opinion thereon, and I do not provide a separate opinion on these matters. Why this matter is considered to be one of the most significant matters in the audit

Audit procedures to address the matter included

Property, plant and equipment Refer to notes 7.2 and 9.6

The Department’s property, plant and equipment at 30 June 2019, totalling $1.93bn, includes land and buildings totalling $1.88bn recognised at fair value.

The fair value of land and buildings are derived from observable market information provided by an external expert. The Department undertakes formal revaluations on a rolling basis to ensure valuations represent fair value. Indexation is applied to fair values between formal valuations. The calculation of fair value is judgemental and highly dependent on a range of assumptions and estimates.

Capital expenditure payments for the year ended 30 June 2019 totalled $0.043bn. Capital projects can contain a combination of enhancement and maintenance activity which are not distinct and therefore the allocation of costs between capital and operating expenditure is inherently judgemental.

The calculation of depreciation requires estimation of asset useful lives, which involves a high degree of subjectivity. Changes in assumptions underlying depreciation calculations can significantly impact depreciation charged.

• Assessing the scope, expertise and independence of experts involved in the valuations.

• Evaluating the appropriateness of the valuation methodology applied to determine the fair values.

• Testing, on a sample basis, the mathematical accuracy of the valuation models’ calculations.

• Assessing the Department’s capitalisation policy to determine compliance with relevant accounting standards.

• Testing, on a sample basis, costs capitalised to work in progress.

• Evaluating management’s assessment of the stage of completion for capital works in progress.

• Evaluating management’s assessment of the useful lives of buildings.

• Performing substantive analytical procedures on building depreciation expense.

• Evaluating the adequacy of disclosures made in the financial report, including those regarding key assumptions used.

…3 of 4

Responsibilities of the Secretary for the Financial Statements The Secretary is responsible for the preparation and fair presentation of the financial statements in accordance with Australian Accounting Standards, and the financial reporting requirements of Section 27 (1) of the Financial Management and Audit Act 1990. This responsibility includes such internal control as determined necessary to enable the preparation of the financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the Secretary is responsible for assessing the Department’s ability to continue as a going concern unless the Department’s operations will cease as a result of an administrative restructure. The assessment must disclose, as applicable, matters related to going concern and the appropriateness of using the going concern basis of accounting. Auditor’s Responsibilities for the Audit of the Financial Statements My objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes my opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the financial statements. As part of an audit in accordance with the Australian Auditing Standards, I exercise professional judgement and maintain professional scepticism throughout the audit. I also:

• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for my opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Department’s internal control.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Secretary.

• Conclude on the appropriateness of the Secretary’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Department’s ability to continue as a going concern. If I conclude that a material uncertainty exists, I am required to draw attention in my auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify my opinion. My conclusion is based on the audit evidence obtained up to the date of my auditor’s report. However, future events or conditions may cause the Department to cease to continue as a going concern.

…4 of 4

• Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

I communicate with the Secretary regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that I identify during my audit. From the matters communicated with the Secretary, I determine those matters that were of most significance in the audit of the financial report of the current period and are therefore the key audit matters. I describe these matters in my auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, I determine that a matter should not be communicated in my report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

Leigh Franklin Assistant Auditor-General, Financial Audit Services Delegate of the Auditor-General Tasmanian Audit Office 23 October 2019 Hobart

D ep ar t men t o f Co mm un i t i e s T a sman i a

Director of Housing Special

Report Department of Communities Tasmania

For the year ended 30 June 2019

Table of Contents

Statement of Certification 3

Statement of Comprehensive Income for the year ended 30 June 2019 4

Statement of Financial Position as at 30 June 2019 5

Statement of Cash Flows for the year ended 30 June 2019 6

Statement of Changes in Equity for the year ended 30 June 2019 8

Notes to and forming part of the Financial Statements for the year ended 30 June 2019 9

Appendix B – Director of Housing Special Report | PAGE 3 of 52

Statement of Certification

The accompanying Financial Statements of the Department of Communities Tasmania (the Department)

are in agreement with the relevant accounts and records and have been prepared in compliance with the

Treasurer’s Instructions issued under the provisions of the Financial Management and Audit Act 1990 to

present fairly the financial transactions for the year ended 30 June 2019 and the financial position as at

the end of that year.

At the date of signing, I am not aware of any circumstances which would render the particulars included in

the financial statements misleading or inaccurate.

Michael Pervan Peter White Rod Fazackerley

Secretary Deputy Secretary Principal Financial Officer

Statutory Director of Housing Housing, Disability and Community Services

Statement of Comprehensive Income for the year ended 30 June 2019

Notes

2019 Actual $'000

2018 Actual $'000




Appropriation revenue - recurrent 2.1 46 166 44 013

Appropriation revenue - works and services 2.1 20 000 19 500

Other revenue from Government 2.1 519 9 000

Revenue from Special Capital Investment Funds 2.2 406 3 434

Grants 2.3 5 793 3 175

Rental revenue 2.4 54 360 51 846

Sales of goods and services 2.5 153 177

Interest 2.6 59 49

Contributions received 2.7 40 0

Other revenue 2.8 21 664 50 064




Depreciation and amortisation 3.2 24 691 19 627

Maintenance 3.3 27 669 26 008

Supplies and consumables 3.4 40 604 42 664

Grants and subsidies 3.5 48 247 73 793

Finance costs 3.6 7 596 8 108

Other expenses 3.7 1 110 932




Net gain/(loss) on non-financial assets 4.1 ( 143) ( 67)

Net actuarial gains/(losses) on superannuation defined benefit plans 6.4 ( 966) 4 213

Net gain/(loss) on financial instruments and statutory receivables/payables 4.2 ( 775) ( 774)

Other gains/(losses) from other economic flows 4.3 3 203 521


Net result from continuing operations ( 12 019) 1 196


Items that will not be reclassified subsequently to profit or loss

Changes in property, plant and equipment revaluation surplus 8.1 372 120 2 335

Total other comprehensive income 372 120 2 335


This Statement of Comprehensive Income should be read in conjunction with the accompanying notes.


Statement of Financial Position as at 30 June 2019

*Restated

Notes

2019 Actual $'000

2018 Actual $'000

Assets

Financial assets

Cash and deposits 9.1 35 145 34 955

Receivables 5.1 2 579 1 357

Loan advances 5.2 849 1 158

HomeShare investments 5.3 22 582 17 633

Other financial assets 5.4 253 491


Assets held for sale 5.5 5 185 2 033

Property, plant and equipment 5.6 1 855 088 1 501 680

Intangibles 5.7 2 600 2 852

Other assets 5.8 0 43

Total assets 1 924 281 1 562 202

Liabilities

Payables 6.1 9 041 4 305

Interest bearing liabilities 6.2 157 600 165 515


Superannuation 6.4 7 985 7 415

Other liabilities 6.5 6 818 3 651

Total liabilities 184 825 184 184

Net assets 1 739 456 1 378 018

Equity

Contributed capital 8.1 6 094 6 094

Reserves 8.1 613 235 243 185

Accumulated funds 1 120 127 1 128 739

Total equity 1 739 456 1 378 018

This Statement of Financial Position should be read in conjunction with the accompanying notes.

* Refer Note 8.1 for impact of prior period error

Statement of Cash Flows for the year ended 30 June 2019

Notes

2019 Actual

$'000

2018 Actual

$'000

Cash flows from operating activities Inflows

(Outflows) Inflows

(Outflows)

Cash inflows

Appropriation receipts - recurrent

46 166 44 013

Appropriation receipts - works and services

11 539 5 251

Receipts from Special Capital Investment Funds

3 878 0

Grants - continuing operations

5 793 2 961

Rental revenue

52 773 51 058

Sales of goods and services

129 1 609

GST receipts

8 433 9 372

Interest received

59 49

Other cash receipts

21 664 19 203

Total cash inflows

150 434 133 516

Cash outflows

Employee benefits

( 12 894) ( 13 330)

Finance costs

( 7 596) ( 7 727)

GST payments

( 8 886) ( 9 078)

Grants and transfer payments

( 45 580) ( 33 452)


( 60 180) ( 64 548)

Other cash payments

( 1 083) ( 900)

Total cash outflows

( 136 219) ( 129 035)

Net cash from/(used by) operating activities 9.2 14 215 4 481

Cash flows from investing activities

Cash inflows

Proceeds from the disposal of non-financial assets

6 821 10 013

Receipts from investments

2 958 3 614

Receipts from non-operational capital funding - works and services

8 208 14 768

Receipts from non-operational capital funding - Special Capital Investment Funds

0 2 967

Receipts from non-operational capital funding - Grants

0 214

Repayment of loans by other entities

309 155

Total cash inflows

18 296 31 731

Cash outflows

Payment for acquisition of non-financial assets

( 19 732) ( 31 724)

Payments for investments

( 4 674) ( 1 968)

Total cash outflows

( 24 406) ( 33 692)

Net cash from/(used by) investing activities

( 6 110) ( 1 961)


Notes

2019 Actual

$'000

2018 Actual

$'000

Cash flows from financing activities Inflows

(Outflows) Inflows

(Outflows)

Cash outflows

Repayment of borrowings ( 7 915) ( 7 777)

Total cash outflows

( 7 915) ( 7 777)

Net cash from/(used by) financing activities

( 7 915) ( 7 777)

Net increase/(decrease) in cash and cash equivalents held 190 ( 5 257)

Cash and deposits at the beginning of the reporting period 34 955 40 212

Cash and deposits at the end of the reporting period 9.1 35 145 34 955

This Statement of Cash Flows should be read in conjunction with the accompanying notes.

Statement of Changes in Equity for the year ended 30 June 2019

Notes Contrib

Equity Reserves

Accum

Funds

Total

Equity

$'000 $'000 $'000 $'000

Balance as at 1 July 2018 6 094 243 185 1 128 739 1 378 018

Adjustment due to change in accounting policy 0 0 37 37

Restated balance as at 1 July 2018 6 094 243 185 1 128 776 1 378 055

Net result 0 0 ( 12 019) ( 12 019)

Other comprehensive income 0 372 120 0 372 120

Total comprehensive result 0 372 120 ( 12 019) 360 101

Transfers from asset revaluation reserve to accumulated

surplus 8.1 0 ( 2 603) 2 603 0

Transactions with owners in their capacity as owners:

Administrative restructure - net assets received 0 1 300 1 300

Create ARR - DHHS / DPAC assets 8.1 0 533 ( 533) 0

Balance as at 30 June 2019 6 094 613 235 1 120 127 1 739 456

Notes Contrib

Equity

$‘000

Reserves

$‘000

Accum

Funds

$‘000

Total

Equity

$‘000

Balance as at 1 July 2017

6 094 1 588 761

( 220

368) 1 374 487

Adjustment of prior period error

0 (1 341 908)

1 341

908 0

Restated balance as at 1 July 2017

6 094 246 853

1 121

540 1 374 487

Net Result 0 0 1 196 1 196

Other Comprehensive Income 0 2 335 0 2 335

Total comprehensive result 0 2 335 1 196 3 531

Transfers from asset revaluation reserve to accumulated

surplus

0 ( 6 003) 6 003 0

Balance as at 30 June 2018

8.1

6 094 243 185

1 128

739 1 378 018

This Statement of Changes in Equity should be read in conjunction with the accompanying notes.


Notes to and forming part of the Financial Statements

for the year ended 30 June 2019

Note 1 Underlying Net Operating Balance 11

Note 2 Revenue from Transactions 12

2.1 Revenue from Government 12

2.2 Revenue from Special Capital Investment Funds 13

2.3 Grants 13

2.4 Rental revenue 14

2.5 Sales of goods and services 14

2.6 Interest 14

2.7 Contributions received 15

2.8 Other revenue 15

Note 3 Expenses from Transactions 16

3.1 Employee benefits 16

3.2 Depreciation and amortisation 17

3.3 Maintenance 18

3.4 Supplies and consumables 18

3.5 Grants and subsidies 19

3.6 Finance costs 20

3.7 Other expenses 20

Note 4 Other Economic Flows included in Net Result 21

4.1 Net gain/(loss) on non-financial assets 21

4.2 Net gain/(loss) on financial instruments and statutory receivables/payables 21

4.3 Other gains/(losses) from other economic flows 22

Note 5 Assets 23

5.1 Receivables 23

5.2 Loan advances 24

5.3 HomeShare investments 25

5.4 Other financial assets 26

5.5 Assets held for sale 26

5.6 Property, plant and equipment 27

5.7 Intangibles 32

5.8 Other assets 33

Note 6 Liabilities 34

6.1 Payables 34

6.2 Interest bearing liabilities 34

6.3 Employee benefits 35

6.4 Superannuation 36

6.5 Other liabilities 39

Note 7 Commitments and Contingencies 40

7.1 Schedule of Commitments 40

7.2 Contingent assets and liabilities 42

Note 8 Reserves 43

8.1 Reserves 43

8.2 Contributed Capital 43

Note 9 Cash Flow Reconciliation 44

9.1 Cash and deposits 44

9.2 Reconciliation of Net Result to Net Cash from Operating Activities 44

9.3 Acquittal of Capital Investment and Special Capital Investment Funds 45

9.4 Reconciliation of liabilities arising from financing activities 46

Note 10 Associated Entities 47

10.1 Tasmanian Affordable Housing Limited 47

Note 11 Events Occurring After Balance Date 47

Note 12 Other Significant Accounting Policies and Judgements 48

12.1 Objectives and Funding 48

12.2 Basis of Accounting 48

12.3 Reporting Entity 49

12.4 Functional and Presentation Currency 49

12.5 Changes in Accounting Policies 49

12.6 Foreign Currency 51

12.7 Comparative Figures 51

12.8 Rounding 51

12.9 Departmental Taxation 51

12.10 Goods and Services Tax 51


Note 1 - Underlying Net Operating Balance

Non-operational capital funding reflects the income from transactions relating to funding for capital

projects. This funding is classified as revenue from transactions and included in the net operating

balance. However, the corresponding capital expenditure is not included in the calculation of the net

operating balance. Accordingly, the net operating balance will portray a position that is better than the

true underlying financial result.

For this reason, the Net operating balance is adjusted to remove the effects of funding for capital

projects.

Non-operational expenditure that is removed from the net operating balance consists of the transfer of

property under the Community Housing Program.

2019

Actual

$'000

2018

Actual

$'000

Net result from transactions (Net operating balance) ( 13 338) ( 2 697)

Less impact of:


Net result from Capital Investment Program Output 11 749 28 040

Net result from Special Capital Investment Funds ( 576) 0

Total 11 173 28 040

Plus impact of:

Other one-off transactions

Revenue:

- Operating recoveries (Housing Services Output) 0 ( 31 663)

Expenditure:

- Non-monetary asset transfers (Housing Services Output) 2 744 40 409

Total 2 744 8 746

Underlying Net operating balance ( 21 767) ( 21 991)

Note 2 - Revenue from Transactions

Income is recognised in the Statement of Comprehensive Income when an increase in future economic

benefits related to an increase in an asset or a decrease of a liability has arisen that can be measured

reliably.

2.1 - Revenue from Government

Appropriations, whether recurrent or capital, are recognised as revenues in the period in which Housing

Tasmania gains control of the appropriated funds. Except for any amounts identified as carried forward,

control arises in the period of appropriation.

Revenue from Government includes revenue from appropriations, appropriations carried forward under

section 8A(2) of the Public Account Act 1986 and Items Reserved by Law.

Section 8A(2) of the Public Account Act allows for an unexpended balance of an appropriation to be

transferred to an Account in the Special Deposits and Trust Fund for such purposes and conditions as

approved by the Treasurer. In the initial year, the carry forward is recognised as a liability, Revenue

Received in Advance (refer note 9.5). The carry forward from the initial year is recognised as revenue in

the reporting year, assuming that the conditions of the carry forward are met and the funds are

expended.

2019

$'000

2018

$'000


Appropriation revenue - recurrent

Current year 46 166 44 013

Total 46 166 44 013

Appropriation revenue - works and services 20 000 19 500

Revenue from Government - other

Appropriation carried forward under section 8A(2) of the Public Account Act 1986 taken

up as revenue in the current year 519 9 000

Total 519 9 000

Total revenue from Government 66 685 72 513


2.2 - Revenue from Special Capital Investment Funds

Funding for major infrastructure projects is provided through Special Capital Investment Funds. Housing

Tasmania is allocated funding for specific projects from the Special Capital Investment Funds as part of

the Budget process.

2019

$'000

2018

$'000


Housing Fund 406 3 434

Total 406 3 434

Total revenue from Special Capital Investment Funds 406 3 434

2.3 - Grants

Grants payable by the Australian Government are recognised as revenue when Housing Tasmania

gains control of the underlying assets. Where grants are reciprocal, revenue is recognised as

performance occurs under the grant.

Non-reciprocal grants are recognised as revenue when the grant is received or receivable. Conditional

grants may be reciprocal or non-reciprocal depending on the terms of the grant.

2019

$'000

2018

$'000



Other Commonwealth Grants 604 3 175

Total 604 3 175



Other Commonwealth Grants 5 189 0

Total 5 189 0

Total revenue from Grants 5 793 3 175

In 2019, Other Commonwealth Grants primarily relate to the National Partnership Agreement on Remote

Indigenous Housing.

2.4 - Rental revenue

Rental Revenue arises from the letting of properties owned by the Director of Housing. This is

comprised of the market rent for each individual property reduced by the public rental subsidy, which is

an income based subsidy derived from the clients' individual circumstances.

Rental income, together with the associated rebate, is recognised on an accruals basis in accordance

with the tenancy arrangements for each property.

2019

$'000

2018

$'000

Residential rent income 96 115 89 472

Less: Rebates ( 41 755) ( 37 626)

Total 54 360 51 846

2.5 - Sales of goods and services

Amounts earned in exchange for the provision of goods are recognised when the significant risks and

rewards of ownership have been transferred to the buyer. Revenue from the provision of services is

recognised in proportion to the stage of completion of the transaction at the reporting date. The stage of

completion is assessed by reference to surveys of work performed.

2019

$'000

2018

$'000

Other client revenue 132 141

Other user charges 21 36

Total 153 177

2.6 - Interest

Interest on funds invested is recognised as it accrues using the effective interest rate method.


2.7 - Contributions received

Services received free of charge by Housing Tasmania, are recognised as income when a fair value can

be reliably determined and at the time the services would have been purchased if they had not been

donated. Use of those resources is recognised as an expense.

Contributions of assets at no cost of acquisition or for nominal consideration are recognised at their fair

value when Housing Tasmania obtains control of the asset, it is probable that future economic benefits

comprising the contribution will flow to the Housing Tasmania and the amount can be measured reliably.

However, where the contribution received is from another government department as a consequence of

restructuring of administrative arrangements, they are recognised as contributions by owners directly

within equity. In these circumstances, book values from the transferor department have been used.

2019

$'000

2018

$'000

Fair value of assets assumed at no cost or for nominal consideration 40 0

Total 40 0

In 2019, fair value of assets assumed at no cost or for nominal consideration refer to a block of vacant

land at 2 Clive Street, St Mary's that came to the Director of Housing as a contribution received.

2.8 - Other revenue

Other revenue primarily relates to the recovery of costs incurred and is recognised when an increase in

future economic benefits relating to an increase in an asset or a decrease of a liability has arisen that

can be reliably measured.

2019 $'000

2018 $'000

Operating recoveries 19 693 44 737

Family violence action plan initiatives 0 2 507

Revenue from sale of contingent assets 1 971 2 820

Total 0 21 664 50 064

Operating recoveries this year includes rates, service charges and insurance that are recouped from

community organisations managing tenancies under the Better Housing Futures (BHF) program and

other arrangements.

Revenue from sale of contingent assets represents Housing Tasmania's share of sales proceeds for

properties under the BHF program.

Note 3 - Expenses from Transactions

Expenses are recognised in the Statement of Comprehensive Income when a decrease in future

economic benefits related to a decrease in an asset or an increase of a liability has arisen that can be

measured reliably.


Employee benefits include, where applicable, entitlements to wages and salaries, annual leave, sick

leave, long service leave, superannuation and any other post-employment benefits.

(a) Employee expenses

2019 $'000

2018 $'000

Wages and salaries including FBT 9 534 9 755

Annual leave 802 761


Sick leave 607 573

Other employee expenses - recruitment & staff development 80 59

Other employee expenses - other staff allowances 19 17

Superannuation expenses - defined contribution and benefits schemes 1 250 1 387

Total 0 12 581 12 823

Superannuation expenses relating to defined benefit schemes relate to payments into the Consolidated

Fund. The amount of the payment is based on a department contribution rate determined by the

Treasurer, on the advice of the State Actuary. The current department contribution is 12.95 per cent

(2018: 12.95 per cent) of salary. The current year defined benefit superannuation expense is $609 000.

Superannuation expenses relating to defined contribution schemes are paid directly to superannuation

funds at a rate of 9.5 per cent (2018: 9.5 per cent) of salary. In addition, departments are also required to

pay into the Consolidated Fund a “gap” payment equivalent to 3.45 per cent (2018: 3.45 per cent) of

salary in respect of employees who are members of contribution schemes. The current year defined

contribution scheme superannuation expense is $641 000.


3.2 - Depreciation and amortisation

All applicable Non-financial assets having a limited useful life are systematically depreciated over their

useful lives in a manner which reflects the consumption of their service potential. Land and Artwork,

being assets with unlimited useful lives, are not depreciated.

Key estimate and judgment

Depreciation is provided for on a straight line basis, using rates which are reviewed annually. Major

depreciation periods are:

Vehicles 5 years

Plant and equipment 2-20 years

Medical equipment 4-20 years

Buildings 40-50 years

Depreciation of Housing Tasmania’s rental dwellings and community rental stock is based on a useful

life of 50 years in accordance with the State Housing Authority’s Accounting Policies and Reporting

Framework (March 1995). All other buildings are depreciated over their remaining useful life.

All intangible assets having a limited useful life are systematically amortised over their useful lives

reflecting the pattern in which the asset’s future economic benefits are expected to be consumed by

Housing Tasmania.

Major amortisation rates are:

Software 20 per cent

(a) Depreciation

2019 $'000

2018 $'000

Plant, equipment and vehicles 35 32

Buildings 24 223 19 123

Total 0 24 258 19 155

(b) Amortisation

2019 $'000

2018 $'000

Intangibles 433 472

Total 0 433 472

Total depreciation and amortisation 24 691 19 627

3.3 - Maintenance

2019 $'000

2018 $'000

Maintenance 27 669 26 008

Total 0 27 669 26 008

3.4 - Supplies and consumables

2019 $'000

2018 $'000

Consultants 688 2

Insurance 5 462 4 461

Rates and charges 28 077 27 506

Property services and rental payments 1 011 1 173


Information technology 376 392 Travel, transport and vehicle leasing payments 412 443



Patient and client services 210 272

Other leasing and licencing costs 47 37

Equipment and furniture 2 1

Administration 103 81

Food production costs 9 11

Other supplies and consumables 925 5 202

Corporate overhead charge 2 021 2 018

Service fees 673 422

Audit services 80 46

Total 0 40 604 42 664

During 2019 Consultants expenditure primarily relates to analysis of specialist disability accommodation.


3.5 - Grants and subsidies Grant and subsidies expenditure is recognised to the extent that:

• the services required to be performed by the grantee have been performed; or

• the grant eligibility criteria have been satisfied.

A liability is recorded when Housing Tasmania has a binding agreement to make the grants but services

have not been performed or criteria satisfied. Where grant monies are paid in advance of performance or

eligibility, a prepayment is recognised.

2019 $'000

2018 $'000

Other Grants

Grant - Better Housing Futures 2 709 2 025

Grant - Community Housing Program 35 38 316 Grant - Supported Accommodation Assistance Program 25 818 22 283

Grant - other 19 685 11 169

0 48 247 73 793

Total

0 48 247 73 793

Housing Tasmania provides supported accommodation assistance including crisis accommodation and

related support for people who are experiencing homelessness or who are at imminent risk of becoming

homeless and private rental support.

Grants to the Community Housing Program reflect the transfer of properties to non-government

organisations who have assumed responsibility for the management of Housing properties transferred to

the non-government sector.

3.6 - Finance costs All finance costs are expensed as incurred using the effective interest method.

Finance costs primarily include:

• interest on long term borrowings;

• interest on superannuation defined benefit plans

Notes 2019 $'000

2018 $'000

Interest expense

Interest on loans 7 383 7 727 Interest on superannuation defined benefit plans 213 381

Total 7 596 8 108



former principal and interest repayments is applied to new housing support, access and supply. Refer to

Note 11 for further detail.

3.7 - Other expenses

Other expenses are recognised when a decrease in future economic benefits related to a decrease in an asset or an increase of a liability has arisen that can be reliably measured.

2019 $'000

2018 $'000

Salary on-costs 153 64

Tasmanian Risk Management Fund premium 821 842

Other 136 26

Total 0 1 110 932

Other expenses includes estimated legal costs of $100 000.


Note 4 - Other Economic Flows included in Net Result

Other economic flows measure the change in volume or value of assets or liabilities that do not result

from transactions.

4.1 - Net gain/(loss) on non-financial assets

Gains or losses from the sale of non-financial assets are recognised when control of the assets has

passed to the buyer.

Key Judgement



higher of fair value less costs to sell and value in use. Value in use is expected to be materially the same

as fair value, as determined under AASB 13 Fair Value Measurement.



higher of fair value less costs to sell and value in use. Value in use is expected to be materially the same

as fair value, as determined under AASB 13 Fair Value Measurement.

All impairment losses are recognised in the Statement of Comprehensive Income unless it relates to a

revalued asset. In accordance with AASB 136 Impairment of Assets, for previously revalued assets, any

loss is recognised directly against the revaluation reserve, to the extent the loss does not exceed the

amount in the revaluation reserve for that same asset class.

In respect of other assets, impairment losses recognised in prior periods are assessed at each reporting

date for any indications that the loss has decreased or no longer exists. An impairment loss is reversed

if there has been a change in the estimates used to determine the recoverable amount. An impairment

loss is reversed only to the extent that the asset's carrying amount does not exceed the carrying amount

that would have been determined, net of depreciation or amortisation, if no impairment loss had been

recognised.

2019 $'000

2018 $'000

Net gain/(loss) on disposal of physical assets ( 143) ( 67)

Total net gain/(loss) on non-financial assets

0 ( 143) ( 67)

4.2 - Net gain/(loss) on financial instruments and statutory receivables/payables

In 2017-18 financial assets are assessed at each reporting date to determine whether impaired. These

assessments are completed using objective evidence that one or more events had a negative effect on

the estimated future cash flows of that asset.

From 2018-19 financial assets are to be impaired using the expected credit loss approach under AASB 9

Financial Instruments. The expected credit loss is to be recognised for all debt instruments not held at

fair value through profit or loss.

Key Judgement

An impairment loss using the expected credit loss method for all trade debtors uses a lifetime expected loss

allowance. The expected loss rates are based upon historical observed loss rates that are adjusted to

reflect forward looking macroeconomic factors.

For other financial instruments that are not trade receivables, contract assets or lease receivables, the

Department has measured the expected credit loss using a probability-weighted amount that takes into

account the time value of money and forward looking macroeconomic factors.

Notes 2019 $'000

2018 $'000

Impairment of loans and receivables 5.1 ( 775) ( 774)

Total net gain/(loss) on financial instruments ( 775) ( 774)

4.3 - Other gains/(losses) from other economic flows

Other gains/(losses) from other economic flows includes gains or losses from reclassifications of amounts from reserves and/or accumulated surplus to net result.

2019 $'000

2018 $'000

Net gain/(loss) on disposal of HomeShare investments 441 496

Revaluation increments/(decrements) of HomeShare investments 2 732 0

Impairment of HomeShare investments 30 25

Total net gain/(loss) from other economic flows 3 203 521


Note 5 Assets

Assets are recognised in the Statement of Financial Position when it is probable that the future economic

benefits will flow to the Department and the asset has a cost or value that can be measured reliably.

5.1 Receivables

In 2017-18 receivables were recognised at amortised cost, less any impairment losses, however, due to

the short settlement period, receivables were not discounted back to their present value. In addition,

receivables were subject to an annual review for impairment, where there was objective evidence that,

as a result of one or more events that occurred after the initial recognition, the future cash flows had

been affected.

From 2018-19, Housing Tasmania recognises receivables at amortised cost using the effective interest

method. Any subsequent changes are recognised in the net result for the year when impaired,

derecognised or through the amortisation process. Housing Tasmania recognises an allowance for

expected credit losses for all debt financial assets not held at fair value through profit and loss. The

expected credit loss is based on the difference between the contractual cash flows and the cash flows

that the entity expects to receive, discounted at the original effective interest rate.

For trade receivables, Housing Tasmania applies a simplified approach in calculating expected credit

losses. Housing Tasmania recognises a loss allowance based on lifetime expected credit losses at each

reporting date. Housing Tasmania has established a provision matrix based on its historical credit loss

experience for trade receivables, adjusted for forward-looking factors specific to the receivable.

2019 $'000

2018 $'000

Receivables 3 393 2 213

Less: Provision for impairment 0 ( 856)

Less: Expected credit loss ( 814) 0

Total 2 579 1 357

Sales of goods and services (inclusive of GST)

2 359 1 464

Tax assets 220 ( 107)

Total 2 579 1 357

Settled within 12 months 2 579 1 357

Total 2 579 1 357

Reconciliation of movement in expected credit loss for receivables

2019 $'000

Carrying amount at 30 June 2018 under AASB 139 856

Amounts restated through Accumulated Funds ( 37)

Carrying amount at 1 July under AASB 9 819




Reconciliation of movement in provision for impairment of receivables

2018 $'000





5.2 Loan advances Loan advances are borrowings provided to clients for the purchase of homes and are recognised as the

balance of the outstanding principal less any impairment losses.

2019 $'000

2018 $'000

Loan Advances

Loan advances 854 1 163

Less: Provision for impairment ( 5) ( 5)

Total

0 849 1 158



Total

0 849 1 158

Loan advances include financial assistance provided by the Government to individual purchasers in the

form of loans. The provision for impairment is the result of an audit undertaken by an external entity.


5.3 - HomeShare investments

The Director of Housing holds investments via the HomeShare Program.

HomeShare investments are initially recorded at cost with any changes in the fair value being recorded

as income or expenses in the Statement of Comprehensive Income. HomeShare investments are not

depreciated and are revalued on a biennial basis using information provided by the Valuer-General.

2019 $'000

2018 $'000


HomeShare investments 17 718 19 598

Add: Additions 4 675 1 213

Less: Disposals ( 2 488) ( 3 093)

19 905 17 718

Fair value increment/(decrement) 2 732 0

HomeShare investments 22 637 17 718

Less: Provision for impairment ( 55) ( 85)

Total

0 22 582 17 633

Settled in more than 12 months 22 582 17 633

Total 22 582 17 633

In 2018-19 these assets had a revaluation gain of $2.732 million which is included in other economic

flows in the Statement of Comprehensive Income (net result).

44 HomeShare investments were disposed of during 2019, and the relevant gain on sale of $441,000 is

disclosed in Note 4.3.

5.4 Other financial assets Other financial assets are recorded at fair value.

2019 $'000

2018 $'000

Accrued revenue 253 491

Total 0 253 491

Settled within 12 Months 253 491

Total 253 491

5.5 Assets held for sale Assets held for sale (or disposal groups comprising assets and liabilities) that are expected to be

recovered primarily through sale rather than continuing use are classified as held for sale. Immediately

before classification as held for sale, the assets (or components of a disposal group) are remeasured at

the lower of carrying amount and fair value less costs to sell.

(a) Carrying amount

2019 $'000

2018 $'000

Land

4 850

826

Buildings 335 1 207

Total 5 185 2 033

Settled within 12 months

5 185

2 033


Total 5 185 2 033

Assets held for sale include residential dwellings from the public housing portfolio identified for sale as

part of the ongoing Strategic Asset Management Plan (SAMP). Where appropriate, existing dwellings

may be offered for sale to the sitting tenants supported by government programs such as the

HomeShare Shared Equity Sales Program or the Streets Ahead Assistance Program. All remaining

properties are offered for sale through the open market, with all properties sold at a minimum of the

market value as assessed by the Valuer-General. All proceeds from the sale of these assets will be

reinvested into the housing portfolio.

Assets held for sale include 4 properties and 75 blocks of vacant land.

All Assets held for sale as at 30 June 2018 were sold during the year, including 7 properties and 4

blocks of vacant land.


(b) Fair value measurement of Assets held for sale (including fair value levels)


$'000


2019 Level 1 $'000

Level 2 $'000

Level 3 $'000

Land 4 850 0 4 850 0

Buildings 335 0 335 0

Total 5 185 0 5 185 0


$'000


2018 Level 1 $'000

Level 2 $'000

Level 3 $'000

Land 826 0 826

Buildings 1 207 0 1 207 0

Total 2 033 0 2 033 0

5.6 Property, plant and equipment Key estimate and judgement

(i) Valuation basis

Land is recorded at fair value and is not depreciated. Buildings, rental dwellings and community housing

stock are recorded at fair value less accumulated depreciation. All other non-current physical assets,

including work in progress, are recorded at historic cost less accumulated depreciation and accumulated

impairment losses. All assets within a class of assets are measured on the same basis.

Cost includes expenditure that is directly attributable to the acquisition of the asset. The costs of self-

constructed assets includes the cost of materials and direct labour, any other costs directly attributable

to bringing the asset to a working condition for its intended use, and the costs of dismantling and

removing the items and restoring the site on which they are located. Purchased software that is integral

to the functionality of the related equipment is capitalised as part of that equipment.

When parts of an item of property, plant and equipment have different useful lives, they are accounted

for as separate items (major components) of property, plant and equipment.

Fair value is based on the highest and best use of the asset. Unless there is an explicit Government

policy to the contrary, the highest and best use of an asset is the current purpose for which the asset is

being used or occupied.

(ii) Subsequent costs

The cost of replacing part of an item of property, plant and equipment is recognised in the carrying

amount of the item if it is probable that the future economic benefits embodied within the part will flow to

Housing Tasmania and its costs can be measured reliably. The carrying amount of the replaced part is

derecognised. The costs of day- to-day servicing of property, plant and equipment are recognised in the

Statement of Comprehensive Income as incurred.

(iii) Asset recognition threshold

The asset capitalisation threshold adopted by Housing Tasmania are:

Vehicles $10 000

Plant and equipment $10 000

Land and buildings $10 000 Intangibles $50 000

Artwork $10 000

Assets valued at less than $10 000 (or $50 000 for intangible assets) are charged to the Statement of

Comprehensive Income in the year of purchase (other than where they form part of a group of similar

items which are material in total).

(iv) Revaluations

Housing Tasmania's land and building assets (excluding vacant land) are revalued biennially as at 1 July

using a mix of valuations and/or updated suburb based indices adjustments. This revaluation cycle

aligns with the Valuer- General's practice of updating capital values every two years. These assets were

revalued this year with the next valuation occurring during the financial year ending 30 June 2021.

Impairment losses resulting from arson are recognised in the Statement of Comprehensive Income

directly against the revaluation reserves, with the total amount of demolitions due to arson disclosed in

the Property, Plant and Equipment Note.


(a) Carrying amount

2019

$'000

2018

$'000

Land Housing vacant land at fair value

38 484

39 341

Land at fair value 451 0

Total land 38 935 39 341

Buildings Buildings at fair value

1 357

0

Less: Accumulated depreciation ( 473) 0

Total 884 0

Rental dwellings Rental dwellings buildings at fair value

1 169 324

930 067

Less: Accumulated depreciation ( 23 008) ( 35 839)

Total 1 146 316 894 228

Rental dwellings land at fair value

566 570

483 065

Total rental dwellings 1 712 886 1 377 293

Community housing stock Community housing buildings at fair value

58 829

34 031

Less: Accumulated depreciation ( 1 178) ( 1 328)

Total 57 651 32 703

Community housing land at fair value

8 164

6 531

Total community housing stock 65 815 39 234

Plant, equipment and vehicles At cost

190

190

Less: Accumulated depreciation ( 69) ( 34)

Total plant, equipment and vehicles 121 156

Work in progress Buildings

36 406

45 615

Plant, equipment and vehicles 41 41

Total work in progress 36 447 45 656

Total Property, plant and equipment 1 855 088 1 501 680

During the year 6 properties were demolished due to arson attacks, with a total carrying amount of $500,000

(2018 - six properties with a value of $600,000).

(b) Reconciliation of movements (including fair value levels)

Reconciliations of the carrying amounts of each class of Property, Plant and Equipment at the beginning and end

of the current and previous financial year are set out below. Carrying value means the net amount after deducting

accumulated depreciation and accumulated impairment losses.

2019

Community housing

stock Rental

Dwellings Vacant Land Buildings



Level 2 Level 2 Level 2 Level 3

$'000 $'000 $'000 $'000 $'000 $'000 $'000

Carrying value at 1 July 39 234 1 377 293 39 341 0 156 45 656 1 501 680

Net transfers through restructuring 410 890 1 300

Additions 0 0 0 0 0 19 514 19 514

Disposals 0 ( 3 287) ( 1 710) 0 0 0 ( 4 997)

Revaluation increments (decrements) 14 598 350 833 6 349 15 0 0 371 795

Assets held for sale 0 ( 177) ( 4 605) 0 0 0 ( 4 782)

Grants transfers (refer Note 3.5) 0 0 ( 2 744) 0 0 0 ( 2 744)

Transfers between classes 0 163 ( 163) 0 0 0 0

WIP transfers 13 124 11 123 2 057 0 0 ( 26 304) 0

WIP expensed 0 0 0 0 0 ( 2 419) ( 2 419)

Depreciation ( 1 141) ( 23 062) 0 ( 21) ( 35) 0 ( 24 259)

Carrying value at 30 June 65 815 1 712 886 38 935 884 121 36 447 1 855 088

2018

Community housing

stock Rental

Dwellings Vacant Land Buildings



Level 2 Level 2 Level 2 Level 3 $'000 $'000 $'000 $'000 $'000 $'000 $'000

Carrying value at 1 July 40 125 1 409 896 40 551 0 92 16 473 1 507 137

Additions 0 30 861 0 0 0 31 549 62 410

Disposals 0 ( 8 239) ( 236) 0 0 0 ( 8 475)

Revaluation increments (decrements) 0 1 816 601 0 0 0 2 417

Assets held for sale 0 ( 2 222) 0 0 0 0 ( 2 222)

Grants transfers (refer Note 3.5) ( 183) ( 38 703) ( 1 454) 0 0 0 ( 40 340)

Transfers between classes 0 121 ( 121) 0 0 0 0

WIP transfers 0 2 178 0 0 95 ( 2 273) 0

WIP expensed 0 0 0 0 0 ( 93) ( 93)

Depreciation ( 708) ( 18 415) 0 0 ( 31) 0 ( 19 154)

Carrying value at 30 June 39 234 1 377 293 39 341 0 156 45 656 1 501 680


Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly

transaction between market participants at measurement date. It is based on the principle of exit price, and refers

to the price an entity expects to receive when it sells an asset, or the price an entity expects to pay when it

transfers a liability.

Valuation techniques used to measure fair value seek to maximise the use of relevant observable inputs and

minimise the use of unobservable inputs. Valuation techniques are classified based on the level of use of

observable inputs as follows:

Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can

access at the measurement date.

Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or

liability either directly or indirectly.

Level 3 inputs are unobservable inputs for the asset or liability. Unobservable inputs shall be used to measure fair

value to the extent that relevant observable inputs are not available.

(c) Level 3 significant valuation inputs and relationship to fair value

Description

Fair Value

at 30 June

$'000

Significant unobservable inputs

used in valuation

Possible alternative values for level 3

inputs

Sensitivity of fair value to changes in level 3

inputs

Buildings 892 A - Construction costs B - Age and condition of asset C - Remaining useful life

When valuing these assets, their existing and alternative uses are taken into account by valuers. As a result, it is unlikely that alternative values will arise unless there are changes in known inputs.

Tasmanian construction indexes have remained stable over the last 12 months. Design and useful lives are reviewed regularly but generally remain unchanged. As a result, it is unlikely that significant variations in values will arise in the short term.

5.7 Intangibles

An intangible asset is recognised where:

• it is probable that an expected future benefit attributable to the asset will flow to Housing

• the cost of the asset can be reliably measured.

Intangible assets held by Housing Tasmania are valued at fair value less any subsequent accumulated

amortisation and any subsequent accumulated impairment losses where an active market exists. Where no active

market exists, intangible assets held by Housing Tasmania are valued at cost less any subsequent accumulated

amortisation and any subsequent accumulated impairment losses.

Intangible assets with a finite useful life held by Housing Tasmania principally comprise computer software.

(a) Carrying amount

2019

$'000

2018

$'000

Intangibles with a finite useful life

Other non-current assets at cost

2 360

2 360

Less: Accumulated amortisation ( 1 318) ( 885)

Total 1 042 1 475

Intangibles with an infinite useful life

Other non-current assets at cost

0

1 377

Total 0 1 377

Capital work in progress

1 558

0

Total Intangibles 2 600 2 852

(b) Reconciliation of movements

2019 $'000

2018 $'000

Carrying amount at 1 July

2 852

3 151

Intangible assets - purchases 35 0

Work in progress at cost 181 173

WIP expensed ( 35) 0

Amortisation - intangible assets ( 433) ( 472)

Carrying amount at 30 June 2 600 2 852


5.7 Other assets

Other assets, which consists of prepayments, are valued at cost due to the short timeframe over which the

benefits embodied in the asset will be utilised.

(a) Carrying amount

2019 $'000

2018 $'000

Prepayments 0 43

Total 0 43

Recovered within 12 months 0 43

Recovered in more than 12 months 0 0

0 0 43

(b) Reconciliation of movements

2019 $'000

2018 $'000

Carrying amount at 1 July 43 42

Additions 0 43

Utilised ( 43) ( 42)

Carrying amount at 30 June 0 43

Note 6 Liabilities Liabilities are recognised in the Statement of Financial Position when it is probable that an outflow of resources

embodying economic benefits will result from the settlement of a present obligation and the amount at which the

settlement will take place can be measured reliably.

6.1 Payables

Payables, including goods received and services incurred but not yet invoiced, are recognised at amortised

cost, which due to the short settlement period, equates to face value, when Housing Tasmania becomes

obliged to make future payments as a result of a purchase of assets or services.

2019

$'000

2018

$'000

Creditors

4 388

1 021

Accrued expenses 4 653 3 284

Total 9 041 4 305

Settled within 12 months

9 041

4 305


Total 9 041 4 305

Accrued expenses predominantly include Housing Tasmania maintenance expenditure. Settlement is usually

made within 28 days.

6.2 Interest bearing liabilities

Bank loans and other loans are initially measured at fair value, net of transaction costs. Bank loans and other

loans are subsequently measured at amortised cost using the effective interest rate method, with interest

expense recognised on an effective yield basis.

The effective interest rate method is a method of calculating the amortised cost of a financial liability and

allocating interest expense over the relevant period. The effective interest rate is the rate that exactly discounts

estimated future cash payments through the expected life of the financial liability, or where appropriate, a

shorter period.

Subsequent to 30 June 2019, the Australian Government has agreed to waive all future principal and interest

repayments relating to the former Commonwealth State Housing Agreement debt. This is on the condition that

the full amount of former principal and interest repayments is applied to new housing support, access and

supply. Refer to Note 11 for further detail.

2019

$'000

2018

$'000

Loans from Commonwealth Government

157 600

165 515

Total 157 600 165 515



Liabilities for wages and salaries and annual leave are recognised when an employee becomes entitled to

receive a benefit. Those liabilities expected to be realised within 12 months are measured as the amount

expected to be paid. Other employee entitlements are measured as the present value of the benefit at 30 June,

where the impact of discounting is material and at the amount expected to be paid if discounting is not material.

A liability for long service leave is recognised, and is measured as the present value of expected future

payments to be made in respect of services provided by employees up to the reporting date.

2019 $'000

2018 $'000

Accrued salaries 527 481

Annual leave 899 907

Long service leave 1 914 1 886

Other employee benefits 41 24

Total 0 3 381 3 298

Expected to settle wholly within 12 months 1 806 1 779 Expected to settle wholly after 12 months 1 575 1 519

Total 0 3 381 3 298

Other employee benefits is comprised of Purchased Leave and State Service Accumulated Leave Scheme

entitlements.

6.4 Superannuation

(i) Defined contribution plans

A defined contribution plan is a post‑employment benefit plan under which an entity pays fixed contributions

into a separate entity and will have no legal or constructive obligation to pay further amounts. Obligations for

contributions to defined contribution plans are recognised as an expense when they fall due.

(ii) Defined benefit plans

A defined benefit plan is a post‑employment benefit plan other than a defined contribution plan. Key estimate

and judgement

With the exceptions noted below, Housing Tasmania does not recognise a liability for the accruing

superannuation benefits of State Service employees. This liability is held centrally within Government and is

recognised within the Finance‑General Division of the Department of Treasury and Finance.

The Director of Housing’s superannuation obligations, in respect of the contributory service of current and past

government employees, are recognised at the latest actuarial assessment of the members’ entitlements, net of

scheme assets. The valuation is determined by discounting to present value, the gross benefit payments at a

current, market-determined, risk-adjusted discount rate appropriate to the respective plan.

Actuarial gains or losses arising from the actuarial revaluation of Housing Tasmania superannuation liabilities

are recognised in the Statement of Comprehensive Income.

(a) Type of plan


Housing Tasmania is required to meet the emerging cost of pension payments paid in respect of retired

employees, where those employees had a superannuation entitlement that accrued before 1 July 1994.

The State Actuary undertook a revaluation of the present value of the benefit obligation and the fair value of the

plan assets as at 30 June 2019 using the process outlined in AASB 119 Employee Benefits issued on

September 2011. As a result of the revaluation it was determined that the Housing Tasmania Superannuation

Provision was in deficit by $8.0 million (2018: $7.4 million deficit).

The valuation of the superannuation liability relates to the entitlements that accrued before 1 July 1994 for

current employees of Housing Tasmania who are members of the Retirement Benefits Fund Contributory

Scheme and former employees who were either contributors or non-contributors and who have retained

benefits or are current pensioners.


(b) Reconciliation of movements in Present value of superannuation liability

Total Liability

2019 $'000

2018 $'000

Balance at 1 July

7 415 11 869

Included in profit or loss

Current service cost

0 0 Interest revenue

0 0 Interest cost

213 381

Past service cost 0 0

213 381

Included in other comprehensive income

Re-measurement loss (gain):


Return on plan assets excluding interest 0 0

Effect of movement in exchange rates 0 0

Actuarial gains/(losses)

966 ( 4 213)

Other

Employer contributions ( 609) ( 622)

( 609) ( 622)

Balance at 30 June

7 985 7 415

(c) Reconciliation of the Fair Value of Scheme Assets

2019 $'000

2018 $'000

Fair value of scheme assets at beginning of the year 0 0

Employer contributions 609 622

Benefits paid ( 609) ( 622)

Fair value of scheme assets at end of the year 0 0

(d) Reconciliation of the Defined Benefit Obligation

2019 $'000

2018 $'000

Present value of defined benefit obligations at beginning of the year 7 416 11 869

Interest cost 213 381


Benefits paid 609 622

Present value of defined benefit obligations at end of the year 7 986 7 416

(e) Reconciliation of the Fair Value of Scheme Assets

Housing Tasmania Superannuation Provision do not have any plan assets due to members being

part of the RBF Contributory Scheme.


(f) Significant Actuarial Assumptions at the Reporting Date

Assumptions to Determine Defined Benefit Cost


Provision

2019 %

2018 %

Discount rate

3.00 3.30


3.00 3.00


3.00 3.00

Inflation (pension)

2.50 2.50

Assumptions to Determine Defined Benefit Obligation


Provision

2019 %

2018 %

Discount rate

1.80 3.00


3.00 3.00


3.00 3.00

Inflation (pension)

2.50 2.50

As at 30 June 2019 the weighted average duration of the defined benefit obligation for Housing was 11.2 years (2018: 10.5 years).

(g) Sensitivity analysis


The defined benefit obligation as at 30 June 2019 is presented below under several scenarios.

Scenario A and B relate to discount rate sensitivity. Scenario C and D relate to expected pension increase rate sensitivity.

Scenario A : 1% pa lower discount rate assumption

Scenario B : 1% pa higher discount rate assumption

Scenario C : 1% pa lower than expected pension increase rate assumption

Scenario D : 1% pa higher than expected pension increase rate assumption

Defined benefit obligation Base Case Scenario A Scenario B Scenario C Scenario D

-1.0% pa discount

rate

+1.0% pa discount

rate

-1.0% pa pension

increase rate

+1.0% pa pension

increase rate

Discount rate (% pa)

1.80 1.30 2.30 1.80 1.80

Pension increase rate (% pa)

2.50 2.50 2.50 1.50 3.50

Defined Benefit obligation (A$'000s)

7,986 8,960 7,181 7,211 8,902

The defined benefit obligation has been recalculated by changing the assumptions as outlined above, whilst retaining all other assumptions.


(h) Funding arrangements

Contributions to the Housing Tasmania Superannuation Provision in respect of defined benefit schemes are

made on an emerging cost basis.

Housing Tasmania expects to make a contribution of $622 000 (2018: $644 000) for the Housing Tasmania

Superannuation Provision during the next financial year.

6.5 Other Liabilities

Other liabilities and other financial liabilities are recognised in the Statement of Financial Position when it is

probable that an outflow of resources embodying economic benefits will result from the settlement of a

present obligation and the amount at which the settlement will take place can be measured reliably.

Other liabilities include revenue received in advance and on-costs associated with employee benefits.

Revenue received in advance is measured at amortised cost. On-costs associated with employee benefits

expected to be realised within 12 months are measured at the amount expected to be paid. Other on-costs

associated with employee benefits are measured at the present value of the cost at 30 June 2019, where the

impact of discounting is material, and at the amount expected to be paid if discounting is not material.

2019 $'000

2018 $'000

Revenue received in advance

Appropriation carried forward from current and previous years under section 8A(2) of the Public Account Act 1986 0 519

Other revenue received in advance 5 936 3 010

Other Liabilities Employee benefits - on-costs 137 110

Inter entity balance 475 0

Other liabilities 270 12

Total 6 818 3 651

Settled within 12 months 6 741 3 591 Settled in more than 12 months 77 60

Total 6 818 3 651

The Inter entity balance comprises transactions arising from interaction between Housing Tasmania and the

Department of Communities Tasmania (DCT), including goods and services tax settlement entries.

Other liabilities primarily represents estimated legal costs offset by GST at settlement.


Note 7 Commitments and Contingencies

7.1 Schedule of Commitments

2019 $'000

2018 $'000

By Type

Capital Commitments

Property, Plant and Equipment 77 175

Housing Tasmania 49 288 10 873

Total Capital Commitments 49 365 11 048


Rent on Buildings 1 905 2 556

Motor Vehicles 51 52

Total Lease Commitments 1 956 2 608

Other Commitments

Miscellaneous Grants 105 936 41 646

CSHA Debt Interest 72 578 79 962

Miscellaneous Goods and Services contracts 379 0

Total Other Commitments 178 893 121 608

Total 230 214 135 264

By Maturity

Capital Commitments

One year or less 49 365 6 878

From one to five years 0 4 170

Total Capital Commitments 49 365 11 048



From one to five years 1 399 1 589

More than five years 0 460

Total Operating Lease Commitments 1 956 2 607

Other Commitments

One year or less 42 415 39 989

From one to five years 95 447 35 013

More than five years 41 031 46 606

Total Other Commitments 178 893 121 609

Total 230 214 135 264

The Department is prohibited by Treasurer’s Instruction 502 Leases from holding finance leases.

Capital Commitments

Housing Tasmania commitments include commitments to either build or improve existing Housing Tasmania

properties and relate to capital works under the Affordable Housing Strategy Action Plan 2019-2023 (Action

Plan 2). There are also two properties to be transferred to Mission Australia Housing under Stage 1 of the

Better Housing Futures Agreement.


Motor Vehicles

The Government Motor Vehicle Fleet is managed as part of a Whole-of-Government arrangement with the

Department of Treasury and Finance as lessor. Lease payments vary according to the type of vehicle and,

where applicable, the price received for trade-in vehicles. Lease terms for the majority of existing vehicles

are for a period of three years or 60 000 km’s, whichever comes first, with no change to the lease rate. No

restrictions or purchase options are contained in the lease.

Rent on Buildings

Housing Tasmania leases properties around the State for service deliver purposes. Lease commitments

include $1.9 million on state-wide office rentals.

CSHA Debt Interest

The Commonwealth State Housing Agreement Debt Interest relates to interest on loans from the

Commonwealth which is disclosed in Note 7.5


former Commonwealth State Housing Agreement debt. This is on the condition that the full amount of former

principal and interest repayments is applied to new housing support, access and supply. Refer to Note 11 for

further detail.

Miscellaneous Grants

Miscellaneous Grants predominantly include funds for Supported Residential facilities, specialist

homelessness services and the provision of emergency accommodation.

Miscellaneous goods and services contracts

Miscellaneous goods and services contracts includes contracts with the Australian Institute of Health and

Welfare and FOYERS, which is a youth supported accommodation program.


7.2 Contingent assets and liabilities

Contingent assets and liabilities are not recognised in the Statement of Financial Position due to uncertainty

regarding any possible amount or timing of any possible underlying claim or obligation.

(a) Quantifiable contingencies

A quantifiable contingent asset is any possible asset that arises from past events and whose existence will

be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly

within the control of the entity.

A quantifiable contingent liability is any possible obligation that arises from past events and whose existence

will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly

within the control of the entity; or any present obligation that arises from past events but is not recognised

because it is not probable that an outflow of resources embodying economic benefits will be required to

settle the obligation. To the extent that any quantifiable contingencies are insured, details provided below

are recorded net.

2019 $'000

2018 $'000

Quantifiable contingent liabilities

Contingent claims 0 0

Quantifiable contingent assets

Community housing properties and grants 36 978 30 355

Less accumulated depreciation and amortisation ( 484) ( 404)

Better Housing Futures properties 531 143 453 647

Less accumulated depreciation ( 7 621) ( 6 396)

Total quantifiable contingent assets 560 016 477 202

Legal Claims

Housing Tasmania manages its legal claims through the Tasmanian Risk Management Fund (TRMF). An

excess remains payable for every claim and amounts over that excess are met by the TRMF.

Community Housing

Quantifiable contingent assets represent assets that are currently not under the control of the Department,

but it is probable that control will return to the Department in the future. Quantifiable contingent assets

represent dwellings for which the legal title is retained by Housing Tasmania, however tenancy and property

management have been transferred to CHOs, for example Mission Australia, Centacare Evolve Housing

(CEH) and Housing Choices Tasmania. These properties, which have been disclosed in previous years, will

come onto the Balance Sheet in 2019-20 as per the new Accounting Standard AASB 1059 Service

Concession Assets.

(b) Unquantifiable contingencies

Better Housing Futures (BHF)

Under the Residential Management Agreement (RMA), where there is damage to a property valued at

$50 000 or more, Housing Tasmania will consider transferring title of a dwelling to the CHOs. Where

Housing Tasmania transfers title of a damaged property to the CHO, the CHO pays $20 000 to Housing

Tasmania as well as stamp duty, registration fees, the organisations legal fees and disbursements arising

from the transfer. As at 30 June 2019, a total of 8 vacant land lots have been transferred to the CHOs with a

recorded value of $861 000.


Note 8 - Reserves

8.1 Reserves

2019

Community housing

stock Rental

Dwellings Land Buildings Total

$'000 $'000 $'000 $'000 $'000


Balance at the beginning of financial year ( 6 984) 240 653 9 516 0 243 185

Net transfers on restructure 300 233 533

Transfers to accumulated surplus 0 ( 1 565) ( 1 038) 0 ( 2 603)

Revaluation increments/(decrements) 14 598 352 186 5 321 15 372 120

Balance at the end of financial year 7 614 591 274 14 099 248 613 235

2018

Community housing

stock Rental

Dwellings Land Buildings Total

$'000 $'000 $'000 $'000 $'000


Balance at the beginning of financial year 52 580 1 505 634 30 547 0 1 588 761

Restatement of prior period errors ( 59 521) (1 260 929) ( 21 458) (1 341 908)

Transfers to accumulated surplus ( 43) ( 5 683) ( 277) 0 ( 6 003)

Revaluation increments/(decrements) 0 1 631 704 0 2 335

Balance at the end of financial year ( 6 984) 240 653 9 516 0 243 185

(a) Nature and purpose of reserves


The Asset revaluation reserve is used to record increments and decrements on the revaluation of

non‑financial assets, as described in Note 5.6.

Asset revaluation reserve - Adjustment of prior period error

Effective from 1 July 2018, the Department was subject to the State Service (Restructure) Order 2018. As

part of the administrative restructure, asset balances of all assets, including Housing Tasmania, were

confirmed to enable transfers to be correctly accounted for. The asset revaluation reserve balance was also

confirmed as part of this process. As a result, an adjustment of $1.341 billion was made to the opening

balance of the asset revaluation reserves as at 1 July 2017. The corresponding adjustment was to

accumulated funds.

8.2 Contributed Capital Capital Contributed records capital contributed on formation of the Home Ownership Assistance Program.

2019 $'000

2018 $'000

Contributed capital

Balance at the beginning of financial year 6 094 6 094

Balance at the end of financial year 6 094 6 094


Note 9 Cash Flow Reconciliation Cash means notes, coins, any deposits held at call with a bank or financial institution, as well as funds held

in the Special Deposits and Trust Fund, being short term of three months or less and highly liquid. Deposits

are recognised at amortised cost, being their face value.

9.1 Cash and deposits Cash and deposits includes the balance of the Special Deposits and Trust Fund Accounts held by the

Department, and other cash held, excluding those accounts which are administered or held in a trustee

capacity or agency arrangement.

2019 $'000

2018 $'000

Special Deposits and Trust Fund balance

T540 DCT Operating Account 35 144 0

T592 Housing Services Operating Account 0 23 025

T647 Home Ownership Assistance Program 0 11 929

Total 35 144 34 954

Other cash held Other cash equivalents not included above 1 1

Total 1 1

Total cash and deposits 35 145 34 955

Other cash equivalents primarily represents petty cash and cash floats.

9.2 Reconciliation of Net Result to Net Cash from Operating Activities 2019

$'000 2018 $'000


( 13 338) ( 2 697)


24 692 19 626

Recognition of assets as a result of stocktake/donations

( 40) 0


( 8 208) ( 17 735)

Capital grants income

0 ( 31 075)

Capital grants expense

2 744 40 341

WIP expensed

2 454 93

Doubtful debts

0 ( 774)

Expected credit losses

( 775) 0

Transfer of assets due to restructure

37 0

Net actuarial gains/(losses) of superannuation defined benefit plans

( 966) 4 213

Decrease (increase) in Receivables

( 1 222) 884

Decrease (increase) in Other assets

281 2 572

Increase (decrease) in Employee entitlements

83 115

Increase (decrease) in Superannuation

570 ( 4 454)

Increase (decrease) in Payables

4 736 1 166

Increase (decrease) in Other liabilities

3 167 ( 7 794)

Net cash from/(used by) operating activities

14 215 4 481


9.3 Acquittal of Capital Investment and Special Capital Investment Funds

The Department received Works and Services Appropriation funding and revenues from Special Capital

Investment Funds to fund specific projects.

Cash outflows relating to these projects are listed below by category.

a) Project expenditure

Notes

2019 Actual $'000

2018 Actual $'000


Affordable Housing Strategy Stage1 20 000 29 041

Affordable Housing Strategy Stage 2 19 150 0

Housing – New Projects Housing – Debt Repayment and Other

15 263 3 576

7 915 8 238

Neighbourhood House Program North-West Youth Accommodation Shelter

0 161

0 4 500

Total Capital Investment Program 62 328 45 516

Notes

2019 Actual $'000

2018 Actual $'000


Housing Fund

National Rental Affordability Scheme 406 3 434

Total Special Capital Investment Fund 406 3 434

Total 62 734 48 950

(b) Classification of cash flows

2019 $'000

2018 $'000

Cash outflows

Employee benefits 541 468

Supplies and consumables 5 456 2 288

Grants 19 860 4 514

Payments for acquisition of assets 28 962 33 904

Debt repayment 7 915 7 776

Total cash outflows 62 734 48 950


9.4 Reconciliation of liabilities arising from financing activities

Liabilities arising from financing activities are liabilities for which cash flows were, or future cash flows will be,

classified in the Statement of Cash Flows as cash flows from financing activities.

As at 30 June 2019, the Department held outstanding debt to the Australian Government under the

Commonwealth-State Housing Agreement (CSHA). Under the CSHA the Australian Government made

advances to states to provide financial assistance for building new public housing and low interest loans to

home builders, as well as a range of other housing-related purposes.

These loans had been provided at a fixed interest rate discounted from the long term prevailing market rate

and the repayments structured so as to allow the loans to be fully repaid over a term of 53 years.

Post the reporting date the Australian Government agreed to waive all future principal and interest

repayments relating to the former CSHA debt. This is on the condition that the full amount of former principal

and interest repayments is applied to new housing support, access and supply. Refer to Note 11 for further

detail.

2019 Borrowings

Lease liabilities

$'000 $'000

Balance as at 1 July 2018 165 515 0




2018 Borrowings

Lease liabilities

$'000 $'000

Balance as at 1 July 2017 173 292 0





Note 10 Associated Entities

10.1 Tasmanian Affordable Housing Limited

On 11 March 2011, the Crown, represented by the Minister for Human Services, became the sole

shareholder of the shares in Tasmanian Affordable Housing Limited (TAHL), thus assuming control of TAHL

as a wholly owned Government entity.

TAHL has not been consolidated into the Housing Tasmania's financial statements as at 30 June 2019 as it

does not come under the control of the Director of Housing. As at 30 June 2019, TAHL's net assets

amounted to $1.281 million, comprising $1.381 million assets and $100 000 liabilities.

As at 30 June 2019, TAHL no longer had principal activities remaining and is expected to wind up during the

2019-20 financial year. In accordance with the TAHL constitution, net assets will be distributed via a

competitive process to a like organisation for the delivery of additional social housing.

Note 11 Events Occurring After Balance Date


former Commonwealth State Housing Agreement debt. This is on the condition that the full amount of former

principal and interest repayments is applied to new housing support, access and supply.

The impact on the Balance Sheet will be to reduce liabilities by the full amount of the loan as at 30 June

2019 ($157 600 259). This will be offset by an increase in contributions received at fair value in the income

statement of the same value.

The Public Sector Union Wages Agreement 2018 was registered by the Tasmanian Industrial Commission

on 19 August 2019. As part of the terms of this Agreement, departmental employees covered by the

Tasmanian State Service Award, are entitled to receive an increase of 2.1 per cent per annum from the pay

period commencing on 13 December 2018.

The Department of Communities Tasmania is expecting to pay this retrospective increase in respect of the

period from 13 December 2018 to 30 June 2019 by the end of October 2019. The estimated amount of the

payment is $142 433.


Note 12 Other Significant Accounting Policies and Judgements

12.1 Objectives and Funding

The objective for Housing Tasmania, as part of the Department of Communities Tasmania is to ensure that

low income individuals and families have access to adequate, affordable and appropriate housing for as long

as it is required.

The Director of Housing contributes to the following Department of Communities Tasmania strategic

priorities: working with communities to offer all Tasmanians the opportunity to participate positively in

community life; working with partners to identify and pursue early opportunities to improve the wellbeing of

individuals, families and communities; working with families, carers and the community to keep children and

young people safe; and working together to continue to build a high performing, committed and engaged

organisation.

Housing Tasmania activities contributing towards those activities involve the use of assets, liabilities,

revenues and expenses controlled by the Director of Housing in her own right.

Housing Tasmania is funded through a mix of attributed Parliamentary appropriations and retained revenues,

primarily rental and asset sale income. The financial report encompasses all funds through which the

Director of Housing controls resources to carry out its functions including the Home Ownership Assistance

Program (HOAP).

The Tasmanian Government discontinued lending through the HOAP scheme with effect from June 2008.

Home ownership support was provided through the "HomeShare" Shared Equity Scheme in 2018-19 and it

was funded through direct appropriation and past HOAP surpluses.

The Financial Statements were signed by the Statutory Director of Housing Tasmania on 23 October 2019.

12.2 Basis of Accounting

The Statutory Director of Housing has decided that as there are no users dependent on General Purpose

Financial Statements, these Special Purpose Financial Statements have been prepared in order to meet the

financial obligations of Housing Tasmania and the Audit Act 2008.

These Special Purpose Financial Statements have been prepared in accordance with the recognition and

measurement requirements specified by Australian Accounting Standards and Interpretations issued by the

Australian Accounting Standards Board and the disclosure requirements of AASB 101 Presentation of

Financial Statements, AASB 107 Statement of Cash Flows, AASB 108 Accounting Policies, Changes in

Accounting Estimates and Errors, AASB 1048 Interpretation and Application of Standards, AASB 1054

Australian Additional Disclosures, AASB 13 Fair Value Measurement, AASB 1004 Contributions and AASB

116 Property Plant and Equipment.

Compliance with the Australian Accounting Standards (AAS) may not result in compliance with International

Financial Reporting Standards (IFRS), as the AAS include requirements and options available to not-for-

profit organisations that are inconsistent with IFRS. Housing Tasmania is considered to be not-for-profit and

has adopted some accounting policies under the AAS that do not comply with IFRS.

This Special Purpose Financial Report has reduced disclosure in terms of Financial Instruments and

Superannuation Reporting.


The Special Purpose Financial Statements have been prepared on an accrual basis and, except where

stated, are in accordance with the historical cost convention. The Financial Statements have been prepared

on a going concern basis. The continued existence of Housing Tasmania, undertaking its current activities, is

dependent on Government Policy and continuing appropriations through the Department of Communities

Tasmania for Housing Tasmania's administration and activities.

12.3 Reporting Entity

The Financial Statements include all the controlled activities of Housing Tasmania. The Financial Statements

consolidate material transactions and balances of Housing Tasmania. Summary information relating to

Tasmanian Affordable Housing Limited (TAHL) is disclosed in Note 16 Associated Entities.

12.4 Functional and Presentation Currency

These Financial Statements are presented in Australian dollars, which is the Department's functional

currency.

12.5 Changes in Accounting Policies

(a) Impact of new and revised Accounting Standards

In the current year, there have not been any new and revised Standards and Interpretations issued by the

Australian Accounting Standards Board (AASB) that are relevant to Housing Tasmania's operations and

effective for the current annual reporting period.

(b) Impact of new and revised Accounting Standards yet to be applied

The following applicable Standards have been issued by the AASB and are yet to be applied:

• AASB 15 Revenue from Contracts with Customers – The objective of this Standard is to establish the

principles that an entity shall apply to report useful information to users of financial statements about the

nature, amount, timing, and uncertainty of revenue and cash flows arising from a contract with a

customer. In accordance with 2015-18 Amendments to Australian Accounting Standards - Effective

Date of AASB 15, this Standard applies to annual reporting periods beginning on or after 1 January

2019. Where an entity applies the Standard to an earlier annual reporting period, it will disclose that

fact. There is no financial impact expected from the application of this revised standard. Housing

Tasmania's major sources of income are from Government Appropriation for recurrent operations,

works and services, capital grants and rental revenue. Current operating procedures ensure that

revenue is recognised simultaneously that services have been delivered. This timing of revenue

recognition is the same as the new standard. Review of other revenue sources confirms that there are

no instances where revenue is recognised but the performance obligation under the contract has not

been met.


• 2014-5 Amendments to Australian Accounting Standards arising from AASB 15 – The objective of this

Standard is to make amendments to Australian Accounting Standards and Interpretations arising from

the issuance of AASB 15 Revenue from Contracts with Customers. This Standard applies when AASB

15 is applied, except that the amendments to AASB 9 (December 2009) and AASB 9 (December 2010)

apply to annual reporting periods beginning on or after 1 January 2018. This Standard will be applied

when AASB 15 is applied. There is no financial impact expected from the application of this revised

standard as there is no financial impact expected from the implementation of AASB 15.

• 2016-3 Amendments to Australian Accounting Standards - Clarifications to AASB 15 - The objective of

this Standard is to clarify the requirements on identifying performance obligations, principal versus

agent considerations and the timing of recognising revenue from granting a licence. This Standard

applies to annual periods beginning on or after 1 January 2019. The impact is enhanced disclosure in

relation to revenue. There is no financial impact expected from the application of this revised standard.

• AASB 16 Leases – The objective of this Standard is to introduce a single lessee accounting model and

require a lessee to recognise assets and liabilities. This Standard applies to annual reporting periods

beginning on or after 1 January 2019. The standard will result in most of Housing Tasmania's operating

leases being brought onto the Statement of Financial Position and additional note disclosures. The

calculation of the lease liability will take into account appropriate discount rates, assumptions about the

lease term, and required lease payments. A corresponding right to use asset will be recognised, which

will be amortised over the term of the lease. There are limited exceptions relating to low-value leases

and short-term leases. Operating lease costs will no longer be shown. The Statement of

Comprehensive Income impact of the leases will be through amortisation and interest charges. In the

Statement of Cash Flows, lease payments will be shown as cash flows from financing activities instead

of operating activities. It should be noted that there will be no impact on the Department's cash flow.

It is anticipated that the implementation of the new standard will increase Housing Tasmania’s assets by

$930 000 with a corresponding increase in the Department’s liabilities of $930 000. This represents the

Department's leased motor vehicles. For 2019-20 financial year, the annual amortisation expense is

estimated to be $31 000 with interest expense of $20 000.

• AASB 1058 Income of Not-for-Profit Entities - The objective of this Standard is to establish principles for

not-for-profit entities that apply to transactions where the consideration to acquire an asset is

significantly less that fair value principally to enable a not-for-profit entity to further its objectives, and

the receipt of volunteer services. This Standard applies to annual reporting periods beginning on or after

1 January 2019. The impact is enhanced disclosure in relation to income of not-for-profit entities. It

should be noted that there will be no impact on Housing Tasmania's cash flow, statement of financial

position and financial performance.


• AASB 1059 Service Concession Arrangements: Grantors – The objective of this Standard is to

prescribe the accounting for a service concession arrangement by a grantor that is a public sector

entity. This Standard applies on or after 1 January 2020. The impact of this Standard is enhanced

disclosure in relation to service concession arrangements for grantors that are public sector entities.

The financial impact has been assessed as requiring Housing Tasmania to increase its assets by

$560.015 million which represents assets that are currently classed as quantifiable contingent assets

and an increase in annual depreciation expenses of $11.2 million.

12.6 Foreign Currency

Transactions denominated in a foreign currency are converted at the exchange rate at the date of the

transaction. Foreign currency receivables and payables are translated at the exchange rates current as at

balance date.

12.7 Comparative Figures

Comparative figures have been adjusted to reflect any changes in accounting policy or the adoption of new

standards. Details of the impact of changes in accounting policy on comparative figures are at Note 19.5.

Where amounts have been reclassified within the Financial Statements, the comparative statements have

been restated.

12.8 Rounding

All amounts in the Financial Statements have been rounded to the nearest thousand dollars, unless

otherwise stated. As a consequence, rounded figures may not add to totals. Amounts less than $500 are

rounded to zero.

12.9 Departmental Taxation

The Department is exempt from all forms of taxation except Fringe Benefits Tax (FBT) and Goods and

Services Tax (GST).

12.10 Goods and Services Tax

Revenue, expenses and assets are recognised net of the amount of Goods and Services Tax, except where

the GST incurred is not recoverable from the Australian Taxation Office. Receivables and payables are

stated inclusive of GST. The net amount recoverable, or payable, to the Australian Taxation Office is

recognised as an asset or liability within the Statement of Financial Position.

In the Statement of Cash Flows, the GST component of cash flows arising from operating, investing or

financing activities which is recoverable from, or payable to, the Australian Taxation Office is, in accordance

with the Australian Accounting Standards, classified as operating cash flows.

…1 of 3

Independent Auditor’s Report To Members of Parliament Report on the Audit of the Special Purpose Financial Report Opinion I have audited the accompanying financial report, being a special purpose financial report of the Director of Housing, which comprises the statement of financial position as at 30 June 2019 and the statements of comprehensive income, changes in equity and cash flows for the year then ended, notes to the financial statements including a summary of significant accounting policies and other explanatory information and the statement of certification by the Statutory Director of Housing (the Statutory Director). In my opinion, the financial report presents fairly, in all material respects, the financial position of the Director of Housing as at 30 June 2019, and its financial performance and cash flows for the year then ended in accordance with the financial reporting requirements of Section 17 of the Audit Act 2008. Basis for Opinion I conducted the audit in accordance with Australian Auditing Standards. My responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Report section of my report. I am independent of the Director of Housing in accordance with the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (the Code) that are relevant to my audit of the financial report in Australia. I have also fulfilled my other ethical responsibilities in accordance with the Code. The Audit Act 2008 further promotes the independence of the Auditor-General. The Auditor-General is the auditor of all Tasmanian public sector entities and can only be removed by Parliament. The Auditor-General may conduct an audit in any way considered appropriate and is not subject to direction by any person about the way in which audit powers are to be exercised. The Auditor-General has for the purposes of conducting an audit, access to all documents and property and can report to Parliament matters which in the Auditor-General’s opinion are significant. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my opinion.

…2 of 3

Emphasis of Matter - Basis of Accounting I draw attention to Note 12.2 to the financial report, which describes the basis of accounting. The financial report has been prepared to assist the Director of Housing to meet the financial reporting requirements of the Audit Act 2008. As a result, the financial report may not be suitable for another purpose. My opinion is not modified in respect of this matter. Responsibilities of the Statutory Director for the Financial Report The Statutory Director is responsible for the preparation and fair presentation of the financial report in accordance with the financial reporting requirements of the Audit Act 2008 and for such internal control as they determine is necessary to enable the preparation and fair presentation of a financial report that is free from material misstatement, whether due to fraud or error. In preparing the financial report, the Statutory Director is responsible for assessing Director of Housing’s ability to continue as a going concern, disclosing, as applicable, matters relating to going concern and using the going concern basis of accounting unless the Director of Housing is to be dissolved by an Act of Parliament, or the Statutory Director intends to cease operations, or has no realistic alternative but to do so. Auditor’s Responsibilities for the Audit of the Financial Report My objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes my opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of this financial report. As part of an audit in accordance with the Australian Auditing Standards, I exercise professional judgement and maintain professional scepticism throughout the audit. I also:

• Identify and assess the risks of material misstatement of the financial report, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for my opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Director of Housing’s internal control.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Statutory Director.

• Conclude on the appropriateness of the Statutory Director’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty

…3 of 3

exists related to events or conditions that may cast significant doubt on the Director of Housing’s ability to continue as a going concern. If I conclude that a material uncertainty exists, I am required to draw attention in my auditor’s report to the related disclosures in the financial report or, if such disclosures are inadequate, to modify my opinion. My conclusion is based on the audit evidence obtained up to the date of my auditor’s report. However, future events or conditions may cause the Director of Housing to cease to continue as a going concern.

• Evaluate the overall presentation, structure and content of the financial report, including the disclosures, and whether the financial report represents the underlying transactions and events in a manner that achieves fair presentation.

I communicate with the Statutory Director regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that I identify during my audit.

Leigh Franklin Assistant Auditor-General, Financial Audit Services Delegate of the Auditor-General Tasmanian Audit Office 23 October 2019 Hobart

annual report...functions consistent with the tasmanian government’s commitment to resetting the...

Documents