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BUDGET PAPER 4 | Agency Statements | Volum

e 4

Agency Statements BUDGET PAPER 4 – VOLUME 4

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

©Government of South Australia 2018

BUDGET PAPER 1: BUDGET OVERVIEW

A summary publication capturing all highlights

from the 2018–19 Budget.

BUDGET PAPER 2: BUDGET SPEECH

A copy of the Treasurer’s speech,

delivered to Parliament.

BUDGET PAPER 3: BUDGET STATEMENT

A financial report presenting the state

government’s current and estimated future

economic performance, fiscal strategy, budget

priorities, expenditure, revenue, assets, liabilities,

risks and government business.

BUDGET PAPER 4: AGENCY STATEMENTS | VOLUMES 1, 2, 3, 4

Various financial reports presenting the

state government’s current and estimated

revenue, expenses and performance by agency.

BUDGET PAPER 5: BUDGET MEASURES STATEMENT

A financial report detailing the state government’s

expenditure, savings and revenue initiatives.

Budget Paper 4

2018–19 Agency Statements

Volume 4

Presented by The Honourable Rob Lucas MLC

Treasurer of South Australia on the Occasion of the Budget

for 2018–19

General enquiries regarding budget papers should be directed to:

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

Copies may be obtained from:

SERVICE SA Government Legislation Outlet Ground Floor EDS Centre 108 North Terrace Adelaide SA 5000

Website: www.treasury.sa.gov.au www.statebudget.sa.gov.au

Published 4 September 2018 ISSN 1440-8589

Agency statements by volume

Volume 1

Attorney-General Auditor-General Child Protection Correctional Services Courts Defence

Volume 2

Education Electoral Commission Emergency Services — CFS Emergency Services — MFS Emergency Services — SAFECOM Emergency Services — SES Energy and Mining Environment and Water

Volume 3

Environment Protection Authority Green Industries Health and Wellbeing Human Services Industry and Skills Planning, Transport and Infrastructure

Volume 4

Police Premier and Cabinet Primary Industries and Regions TAFE Tourism Trade, Tourism and Investment Treasury and Finance

Volume 4 contents

Introduction ........................................................................................................................................ 3 Police ................................................................................................................................................. 9 Premier and Cabinet ....................................................................................................................... 37 Primary Industries and Regions ...................................................................................................... 89 TAFE .............................................................................................................................................. 121 Tourism .......................................................................................................................................... 135 Trade, Tourism and Investment .................................................................................................... 155 Treasury and Finance ................................................................................................................... 177 Accounting Standards ................................................................................................................... 227

2018–19 Agency Statements — Volume 4 1

2 2018–19 Agency Statements — Volume 4

Introduction

The 2018–19 Agency Statements outline financial and non-financial information about the services each agency provides to, and on behalf of, the South Australian community.

The agency statements are presented in alphabetical order as indicated in the list below.

Alphabetical list order Agency name Abbreviation

Attorney-General Attorney-General’s Department AGD

Auditor-General Auditor-General’s Department

Child Protection Department for Child Protection DCP

Correctional Services Department for Correctional Services DCS

Courts Courts Administration Authority CAA

Defence SA Defence SA

Education Department for Education DE

Electoral Commission Electoral Commission of South Australia ECSA

Emergency Services ― CFS South Australian Country Fire Service CFS

Emergency Services ― MFS South Australian Metropolitan Fire Service MFS

Emergency Services ― SAFECOM South Australian Fire and Emergency Services Commission SAFECOM

Emergency Services ― SES South Australian State Emergency Service SES

Energy and Mining Department for Energy and Mining DEM

Environment and Water Department for Environment and Water DEW

Environment Protection Authority Environment Protection Authority EPA

Green Industries Green Industries SA GISA

Health and Wellbeing Department for Health and Wellbeing DHW

Human Services Department of Human Services DHS

Industry and Skills Department for Industry and Skills DIS

Planning, Transport and Infrastructure Department of Planning, Transport and Infrastructure DPTI

Police South Australia Police SAPOL

Premier and Cabinet Department of the Premier and Cabinet DPC

Primary Industries and Regions Department of Primary Industries and Regions PIRSA

TAFE SA TAFE SA TAFE SA

Tourism South Australian Tourism Commission SATC

Trade, Tourism and Investment Department for Trade, Tourism and Investment DTTI

Treasury and Finance Department of Treasury and Finance DTF


Definitions

Agency An agency is an administrative unit created under the Public Sector Act 2009 or a statutory authority that is accountable for the delivery of programs on behalf of the government.

Programs and sub-programs A program is a group of related activities that contribute to achieving one of an agency’s and, in turn, the government’s objectives. Many programs are further divided into sub-programs with more specific objectives.

Overview

The agency statements outline projected agency activity and performance for 2018–19. Each agency statement conforms to the following standard presentation structure:

• Objective — outlines the agency’s objectives

• Ministerial responsibilities — identifies the minister responsible for each program/sub-programand identifies any items administered by the agency on behalf of the minister(s)

• Ministerial office resources — details the resources provided to ministerial office(s)

• Workforce summary — summarises the agency’s workforce

• Program net cost of services summary — summarises the net cost of agency programs

• Key agency outputs — summarises services provided

• Investing expenditure summary — summarises investing expenditure for the agency

• Program/sub-program information — for each agency program/sub-program, provides adescription/objective, program summary (expenses, income and full-time equivalents), financialcommentary, highlights and targets, performance and activity indicators

• Financial statements — budgeted financial statements for controlled and administered items

• Summary of major variations — commentary on variances and trends in the financial statements.

Presentation of changes in program structures

Where a program or function is transferred between agencies, program information for previous years is reflected in the current program structure of the receiving agency.

In contrast, the agency financial statements line net cost of providing services in the statement of comprehensive income is based on the actual program structure for the agency as it operated or is expected to operate in each year. This distinction in treatment is drawn so that financial statements accurately reflect events while, at the same time, program information is comparable and not duplicated.

Reconciliation of the financial statements to the current program structure is contained in the program net cost of services summary located at the beginning of each relevant agency section.

Introduction


Financial statements

The estimated financial statements included in the 2018−19 Agency Statements are special purpose financial statements and include, for each agency, a statement of comprehensive income, a statement of financial position and a statement of cash flows.

The format of these estimated financial statements is consistent with the model financial statements (prepared by the Department of Treasury and Finance for statutory reporting requirements) and is consistent with the requirements of AASB 101 Presentation of Financial Statements and AASB 107 Statement of Cash Flows.

Estimates in these financial statements have been prepared:

• on a basis that is consistent with Australian Accounting Standards (Australian Accounting Standards and/or interpretations that have been issued or amended but are not yet effective have not been adopted early)

• on an accrual basis, except for the statement of cash flows which has been derived from the statement of comprehensive income and statement of financial position to reflect cash payments and receipts

• using historical cost convention, except for certain assets and liabilities that are valued in accordance with the valuation policy applicable.

Consistent with Australian Accounting Standards, estimated transactions and balances that are controlled are budgeted for, and reported on, separately to estimated transactions and balances which are administered but not controlled by the agency.

Introduction


Ministerial responsibilities

The ministerial responsibilities table provides a comprehensive list of the agencies and programs which fall under the responsibility of each minister, and is presented in Ministerial Order of Precedence.

Minister Agency Programs The Hon. SS Marshall Premier

Department of the Premier and Cabinet 1. Premier and Cabinet Policy and Support

2. Agent-General 3. State Coordinator-General 4. Support Services and

Community Programs 5. Office of the Economic

Development Board 6. Information and Communication

Technology Services 7. Aboriginal Affairs and

Reconciliation 8. Multicultural Affairs 9. Arts South Australia 10. Veterans’ Affairs

Defence SA 1. Defence Industry Development 2. South Australian Space Industry

Centre 3. Techport Australia

The Hon. VA Chapman Deputy Premier Attorney-General

Attorney-General’s Department 1. Solicitor-General 2. Office of the Director of Public

Prosecutions 3. Crown Solicitor’s Office 4. South Australian Civil and

Administrative Tribunal 5. Forensic Science 6. Office of Parliamentary Counsel 7. Legislative and Policy Services 8. Office of the Public Advocate 9. Equal Opportunity Commission 10. Police Ombudsman 11. Ombudsman 12. Fines Enforcement and

Recovery Unit 13. State Records 14. Justice Technology Services 15. Child Protection Systems Royal

Commission — Response Unit 16. Consumer and Business

Services 17. South Australian Employment

Tribunal Courts Administration Authority 1. Court and Tribunal Case

Resolution Services 2. Alternative Dispute Resolution

Services Electoral Commission of South Australia 1. Electoral Services

The Hon. RI Lucas Treasurer

Department of Treasury and Finance 1. Accountability for Public Sector Resources

2. Treasury Services 3. Industrial Relations 4. Government Services

Introduction


Minister Agency Programs The Hon. JAW Gardner Minister for Education

Department for Education 1. Early Childhood Development 2. School Education

TAFE SA 1. TAFE SA The Hon. DW Ridgway Minister for Trade, Tourism and Investment

Department for Trade, Tourism and Investment

1. Investment 2. International Engagement,

Trade, Migration and International Education

South Australian Tourism Commission 1. Tourism Development 2. Tourisms Events 3. Tourism Marketing

The Hon. JMA Lensink Minister for Human Services

Department of Human Services 1. Communities 2. Status of Women 3. Youth Justice 4. NDIS and Disability Services 5. Social Housing

The Hon DG Pisoni Minister for Industry and Skills

Department for Industry and Skills 1. Industry 2. Skills 3. Office of the Industry Advocate 4. Office of the Small Business

Commissioner The Hon. SG Wade Minister for Health And Wellbeing

Department for Health and Wellbeing 1. Policy, Clinical Services, System Improvement and Administration

2. Health Services The Hon. DC Van Holst Pellekaan Minister for Energy and Mining

Department for Energy and Mining 1. Mineral Resources and Energy

The Hon. R Sanderson Minister for Child Protection

Department for Child Protection 1. Care and Protection

The Hon. TJ Whetstone Minister for Primary Industries and Regional Development

Department of Primary Industries and Regions

1. Primary Industries 2. Regional Development

The Hon. CL Wingard Minister for Police, Emergency Services and Correctional Services Minister for Recreation, Sport and Racing

Department of the Premier and Cabinet 11. Recreation Sport and Racing South Australia Police 1. Public Safety

2. Crime and Criminal Justice Services

3. Road Safety South Australian Country Fire Service 1. Country Fire Service South Australian Metropolitan Fire Service

1. South Australian Metropolitan Fire Service

South Australian Fire and Emergency Services Commission

1. Fire and Emergency Services Strategic Services and Business Support

South Australian State Emergency Service

1. State Emergency Service

Department for Correctional Services 1. Rehabilitation and Reparation 2. Custodial Services 3. Community Based Services

Department for Planning, Transport and Infrastructure

1. Road Safety

The Hon. DJ Speirs Minister for Environment and Water

Department for Energy and Mining 2. Water Industry Technical and Safety Regulation

Department for Environment and Water 1. Sustainability 2. Water 3. Parks and Public Assets

Environment Protection Authority 1. Environment and Radiation Protection

Green Industries SA 1. Waste Reduction, Resource Recovery and Green Industry Development

Introduction


Minister Agency Programs The Hon. SK Knoll Minister for Transport, Infrastructure and Local Government Minister for Planning

Department for Planning, Transport and Infrastructure

2. Roads and Marine 3. Public Transport 4. Infrastructure Planning and

Management 5. Service SA 6. Office of Local Government 7. Land Use Planning

Introduction


Agency: South Australia Police

Minister for Police, Emergency Services and Correctional Services


Police


Contents

Objective .......................................................................................................................................... 12 Ministerial responsibilities ................................................................................................................ 12 Workforce summary ........................................................................................................................ 13 Program net cost of services summary ........................................................................................... 13 Key agency outputs ......................................................................................................................... 13 Investing expenditure summary ...................................................................................................... 14 Program 1: Public Safety ............................................................................................................. 15 Program 2: Crime and Criminal Justice Services ........................................................................ 19 Program 3: Road Safety ............................................................................................................... 23 Financial statements ....................................................................................................................... 26 Summary of major variations........................................................................................................... 32 Additional information for administered items ................................................................................. 36

Police


Objective

The objective of South Australia Police (SAPOL) is to prevent crime, uphold the law, preserve the peace, assist the public in emergency situations, coordinate and manage responses to emergencies, regulate road use and prevent vehicle collisions.


Minister Programs Sub-programs

The Hon. CL Wingard Minister for Police, Emergency Services and Correctional Services

1. Public Safety 1.1 Response and Event Management

1.2 Emergency Response, Management and Coordination

2. Crime and Criminal Justice Services

2.1 Crime and Illegal Drugs 2.2 Criminal Justice and Custodial

Services 3. Road Safety 3.1 Road Use Regulation

3.2 Education and Vehicle Collision Prevention

Administered items

In addition to the above responsibilities, the agency administers the following items on behalf of the minister:

• Exhibit monies

• Firearms Safety Training Levy

• Public private partnership expenditure and revenue (related to Courts Administration Authority sites)

• Revenue from expiation notices

• Statutory officer salaries (Police Commissioner)

• SA Water Corporation — water rate concession for emergency services

• Unclaimed property

• Victims of Crime Levy.

Statutes

The Department of the Premier and Cabinet maintains a list of statutes applicable to ministers.

Police


Workforce summary

FTEs as at 30 June

Agency 2018–19

Budget(a)

2017–18 Estimated

Result(a) 2016–17 Actual(b)

South Australia Police ......................................................................... 5 981.4 5 986.3 5 883.3

Administered items for South Australia Police ..................................... 1.0 1.0 1.0

Total 5 982.4 5 987.3 5 884.3

(a) The 2018–19 Budget and 2017–18 Estimated Result reflect the established FTE caps.

(b) Data published by the Office of the Commissioner for Public Sector Employment.

Program net cost of services summary

Net cost of services(a)

2018–19 Budget

2017–18 Estimated

Result 2017–18 Budget

2016–17 Actual

Program $000 $000 $000 $000

1. Public Safety ....................................................... 345 922 343 911 353 966 338 692

2. Crime and Criminal Justice Services ................... 429 849 428 043 420 559 414 079

3. Road Safety ........................................................ 108 054 108 134 108 696 106 298

Total 883 825 880 088 883 221 859 069

(a) The net cost of services excludes intra-government transfers mainly from the Community Emergency Services Fund and the Community Road Safety Fund.

Key agency outputs

• Protecting life and property and reassuring the community by responding in emergencies, focusing on counter-terrorism, and responding to calls for general police assistance through visible and available policing services.

• Maximising police presence in local communities, community facilities and events, targeting anti-social behaviour and alcohol related offending.

• Preventing, detecting, investigating, and prosecuting criminal behaviour including supporting victims, and working with communities, and other stakeholders on key issues such as family and domestic violence, illicit drugs, and cybercrime.

• Identifying opportunities for legislative reform, and educating the community to reduce criminal victimisation, in crime reduction partnerships with the government, media and business.

• Providing road safety services including enforcing road rules, regulating road use, and educating the community on safe road user practices.

• Targeting dangerous and high risk driving behaviours across the state, with a focus on recidivist offenders, speed, drink or drug driving, wearing seat belts, distraction, and vulnerable road users.

Police


Investing expenditure summary

The 2018–19 investment program is $21.6 million.

Estimated

completion

Total project

cost 2018–19 Budget

2017–18 Estimated


Investments Quarter $000 $000 $000 $000

New projects Firearms Control System ...................... Jun 2021 5 260 478 — — Total new projects 5 260 478 — —

Existing projects Continuous Monitoring for Screening Jun 2019 1 440 200 755 939 Crime Tracking App .............................. Jun 2019 1 000 291 — 291 Data Entry Devices ............................... Jun 2020 3 043 136 1 452 1 452 Edwardstown Centralised Property ...... Jun 2019 812 460 352 — Hi-tech Crime Fighting Equipment ........ Jun 2019 4 267 200 103 303 Mobile Speed Camera Replacement ... Jun 2019 1 672 1 672 — — Police Records Management System — Stages 2 to 4 .................................... Jun 2020 29 013 8 034 4 935 7 197 Total existing projects 41 247 10 993 7 597 10 182

Annual programs Minor Capital Works, Vehicles and Equipment ........................................... n.a. n.a. 10 149 12 322 9 813 Total annual programs 10 149 12 322 9 813

Total investing expenditure 46 507 21 620 19 919 19 995

Police


Program 1: Public Safety

Description/objective

Provides visible and available police services, working in partnership with the community and other agencies. SAPOL helps make South Australia a safer place to live, visit and do business through police response and assistance, management of major events, and emergency response, management, and coordination across the state.

Sub-programs

1.1 Response and Event Management

1.2 Emergency Response, Management and Coordination

Program summary — expenses, income and FTEs

2018–19 Budget

2017–18 Estimated


2016–17 Actual

$000 $000 $000 $000

Expenses Employee benefit expenses.......................................... 297 732 291 261 299 096 283 767 Supplies and services ................................................... 50 565 52 802 54 508 52 895 Depreciation and amortisation expenses ...................... 11 577 11 563 10 833 10 896 Other expenses ............................................................ 7 100 6 918 8 190 14 939 Total expenses 366 974 362 544 372 627 362 497

Income Commonwealth revenues ............................................. 1 484 — — — Fees, fines and penalties .............................................. 5 446 5 196 5 280 5 652 Sales of goods and services ......................................... 14 122 13 501 13 381 14 131 Interest revenues .......................................................... — — — 1 Net gain or loss from disposal of assets ....................... — -64 — 39 Resources received free of charge ............................... — — — 3 982 Total income 21 052 18 633 18 661 23 805

Net cost of providing services 345 922 343 911 353 966 338 692

FTEs as at June (No.) 2 416.9 2 418.9 2 485.8 2 434.2

Police


Sub-program 1.1: Response and Event Management


This sub-program includes enhanced local visibility and frontline policing through responding to calls for service. SAPOL protect the public from crime and disorder, by maximising police presence in local communities and community facilities. This sub-program also involves targeting anti-social behaviour and alcohol related offending at and around community events and using social media to outreach to the public.

Highlights 2017–18

• Efficient response to calls for assistance from the public.

Targets 2018–19

• Continue to respond to community needs and the demand for police services.

2018–19 Budget

2017–18 Estimated


2016–17 Actual

$000 $000 $000 $000 Expenses ...................................................................... 294 518 290 865 303 903 295 028 Income .......................................................................... 21 052 18 633 18 661 19 844 Net cost of sub-program 273 466 272 232 285 242 275 184

FTEs as at June (No.) 1 954.8 1 956.5 2 037.4 1 992.9

Explanation of significant movements

The increase in the 2018–19 budgeted expenses compared to the 2017–18 Estimated Result is primarily due to:

• additional police resources in 2018–19

• funding for extended metropolitan police station opening hours

• funding for civilian prosecutors.

The increase in the 2018–19 budgeted income compared to the 2017–18 Estimated Result is primarily due to Commonwealth funding received under the Indigenous Advancement Strategy.

The decrease in the 2017–18 Estimated Result budgeted expenses compared to the 2017–18 Budget is primarily due to movement in resource allocations between sub-programs from the application of the triennial service activity surveys conducted in 2018.

The decrease in the 2017–18 Estimated Result budgeted expenses compared to the 2016–17 Actual is primarily due to:

• provision for claims arising from the Injury and Income Protection Policy recognised for the first time in 2016–17

• operating savings measures

partially offset by

• additional police resources in 2017–18.

Police


Performance indicators

2018–19

Target

2017–18 Estimated

Result 2017–18

Target 2016–17

Actual

% of call centre calls answered within 20 seconds ≥80% 82.48% ≥80% 82.97%

Activity indicators

2018–19

Projection

2017–18 Estimated

Result 2017–18

Projection 2016–17

Actual No. of patrol taskings in the metropolitan area n.a. 395 483 n.a. 383 981 No. of offences against good order recorded per 1000 head of population

19.82 19.98 22.0 19.61

% of DNA links of persons to crime scenes that contribute to an arrest or report

33% 28% 33% 35%

No. of operational stations 129 129 129 128 No. of grade 2 taskings in the metropolitan area n.a. 193 974 n.a. 195 325

Sub-program 1.2: Emergency Response, Management and Coordination


This sub-program involves accessibility 24/7 for emergency response calls, protecting life and property in emergencies, improving protective security capabilities and providing leadership in incident command. SAPOL also focuses on counter-terrorism, to protect critical infrastructure and dignitaries, prevent violent extremism and manage high risk incidents.


• Maintained community safety by timely responding to calls for police assistance.

• Received over 485 000 calls at the call centre from members of the public.

Targets 2018–19

• Continue search and rescue operations in times of community need.

• Continue to provide leadership and focus on protecting life and properties in emergencies, and work in partnership with other key stakeholders.

2018–19 Budget

2017–18 Estimated


2016–17 Actual

$000 $000 $000 $000 Expenses ...................................................................... 72 456 71 679 68 724 67 469 Income .......................................................................... — — — 3 961 Net cost of sub-program 72 456 71 679 68 724 63 508

FTEs as at June (No.) 462.1 462.4 448.4 441.3


The increase in the 2017–18 Estimated Result budgeted expenses compared to the 2017–18 Budget is primarily due to movement in resource allocation between sub-programs from the application of the triennial service activity surveys conducted in 2018.

Police


The increase in the 2017–18 Estimated Result budgeted expenses compared to the 2016–17 Actual is primarily due to:


• movement in resource allocation between sub-programs from the application of the 2018 triennial service activity surveys

partially offset by

• provision for claims arising from the Injury and Income Protection Policy recognised for the first time in 2016–17.

The decrease in income from the 2017–18 Estimated Result compared to the 2016–17 Actual is primarily due to:

• resources received free of charge for helicopter equipment from the Attorney-General’s Department in 2016–17

• other equipment donated from the Commonwealth in 2016–17.


2018–19

Target

2017–18 Estimated

Result 2017–18

Target 2016–17

Actual

% of grade 1 taskings in the metropolitan area responded to within 15 minutes

≥80% 91.1% ≥80% 90.1%

% of 000 calls presented to Police Communications Centre by Telstra answered within 10 seconds

90% 92.33% 90% 92.71%

Activity indicators

2018–19

Projection

2017–18 Estimated

Result 2017–18


Actual No. of calls received by call centre n.a. 485 643 n.a. 478 447 No. of 000 calls presented to Police Communications Centre by Telstra

n.a. 154 665 n.a. 154 763

No. of grade 1 taskings in the metropolitan area n.a. 1 636 n.a. 1 620 No. of search and rescue operations attended by STAR Group

n.a. 495 n.a. 542

No. of joint emergency services exercises conducted with Emergency and Major Event Section support

75 71 70 63

Police


Program 2: Crime and Criminal Justice Services


SAPOL’s crime prevention and reduction and support of the criminal justice system contribute to the achievement of South Australia’s strategic priorities. To prevent crime and reduce offending, SAPOL works in partnership with the community and other agencies for an accessible and effective criminal justice system.

Sub-programs

2.1 Crime and Illegal Drugs

2.2 Criminal Justice and Custodial Services

Program summary ― expenses, income and FTEs

2018–19 Budget

2017–18 Estimated


2016–17 Actual

$000 $000 $000 $000


Income Commonwealth revenues ............................................. 2 225 — — — Fees, fines and penalties .............................................. 2 445 2 321 2 472 2 523 Sales of goods and services ......................................... 7 089 6 210 6 251 6 316 Interest revenues .......................................................... — — — 2 Net gain or loss from disposal of assets ....................... — -85 — 53 Resources received free of charge ............................... — — — 24 Total income 11 759 8 446 8 723 8 918


FTEs as at June (No.) 2 896.4 2 898.8 2 830.1 2 794.9

Sub-program 2.1: Crime and Illegal Drugs


This sub-program involves expanding local community support and visibility to reduce crime, and the fear of crime. Leading multi-agency collaboration has enhanced SAPOL’s response to domestic and family violence. This sub-program also includes support and collaboration with victims of crime, use of intelligence, public education and technology to reduce cybercrime and innovative techniques to confiscate illicit profits and assets. SAPOL works with government, community, business and media to educate on the harm of illicit drugs.

Police



• Reduction in the rate of offences against the person reported by victims.

• Continued partnership with the community through watch groups.

Targets 2018–19

• Continue working in partnership with the community and other key stakeholders towards reducing the level of offences against the person and property.

• Continue to focus on reducing the impact of illicit drugs in the community.

2018–19 Budget

2017–18 Estimated


2016–17 Actual


FTEs as at June (No.) 1 911.8 1 913.4 1 849.3 1 818.2


The increase in the 2018–19 budgeted expenses compared to the 2017–18 Estimated Result is primarily due to:


• funding for extended metropolitan police station opening hours

• funding for civilian prosecutors.

The increase in the 2018–19 budgeted income compared to the 2017–18 Estimated Result is primarily due to Commonwealth funding received under the Indigenous Advancement Strategy.

The increase in the 2017–18 Estimated Result budgeted expenses compared to the 2017–18 Budget is primarily due to movement in resource allocations between sub-programs from the application of the triennial service activity surveys conducted in 2018.

The increase in the 2017–18 Estimated Result for net cost of sub-program compared to the 2016–17 Actual is primarily due to:

• movement in resource allocations between sub-programs from the application of the triennial service activity surveys conducted in 2018


partially offset by

• provision for claims arising from the Injury and Income Protection Policy recognised for the first time in 2016–17.

Police


Activity indicators

2018–19

Projection

2017–18 Estimated

Result 2017–18


Actual

No. of recorded offences against the person as reported by/on behalf of victims per 1000 head of population

≤13.39 13.16 ≤15.0 13.16

Level of alcohol related crime in licensed premises 1 448 1 337 1 860 1 259 No. of recorded offences against property as reported by/on behalf of victims per 1000 head of population

≤47.79 47.40 ≤50.0 47.71

No. of illicit drug offences detected by police and recorded on apprehension reports

≥4 547 4 083 ≥5 000 5 545

No. of drug diversions recorded as part of the Police Drug Diversion Initiative

≥7 167 7 181 ≥7 500 7 017

No. of clandestine labs detected 75 79 72 78 No. of participants attending Blue Light functions ≥20 000 21 530 ≥20 000 24 104 No. of active watch groups 645 645 650 637 No. of contacts including online reports to Crime Stoppers 20 042 20 508 20 792 19 293

Sub-program 2.2: Criminal Justice and Custodial Services


This sub-program aims to ensure safety in police holding facilities. SAPOL partners with government and the community in identifying and implementing legislative reform. Continuing to innovate to improve police prosecution processes for better criminal justice services is an ongoing focus for SAPOL.


• Continued to provide diversionary options for juveniles as appropriate.

• Processed over 32 000 prisoners through police holding facilities.

Targets 2018–19

• Continue to provide specialist investigation support to the State Coroner.

• Continue to focus on providing safe custodial facilities.

2018–19 Budget

2017–18 Estimated


2016–17 Actual


FTEs as at June (No.) 984.6 985.4 980.8 976.7


• No major variations.

Police



2018–19

Target

2017–18 Estimated

Result 2017–18

Target 2016–17

Actual

% of SAPOL prosecutions which are finalised by a guilty verdict or guilty plea

80.30% 80.70% 80.11% 80.20%

Activity indicators

2018–19

Projection

2017–18 Estimated

Result 2017–18


Actual No. of prosecution charges initiated by police in state courts n.a. 117 659 n.a. 109 489 No. of coronial investigation reports (deaths) submitted by police to the State Coroner’s Office

n.a. 1 653 n.a. 1 522

No. of formal cautions (juvenile) issued n.a. 1 154 n.a. 1 098 No. of family conference referrals (juvenile) by police n.a. 929 n.a. 947 No. of prisoners processed through police holding facilities n.a. 32 444 n.a. 33 113 No. of unnatural deaths in police custody — 3 — 5 No. of escapes from police holding facilities — — — 2

Police


Program 3: Road Safety


Policing for safer roads and road use across the state. SAPOL road safety services include the regulation of road use, education and vehicle collision prevention. Police work in partnership with the community and other agencies to achieve better road safety outcomes for all South Australians and those visiting the state.

Sub-programs

3.1 Road Use Regulation

3.2 Education and Vehicle Collision Prevention


2018–19 Budget

2017–18 Estimated


2016–17 Actual

$000 $000 $000 $000


Income Commonwealth revenues ............................................. 571 — — — Fees, fines and penalties .............................................. 396 375 429 416 Sales of goods and services ......................................... 4 401 4 170 4 424 3 862 Net gain or loss from disposal of assets ....................... — -36 — 26 Resources received free of charge ............................... — — — 6 Total income 5 368 4 509 4 853 4 310


FTEs as at June (No.) 669.1 669.6 671.4 655.2

Sub-program 3.1: Road Use Regulation


This sub-program targets dangerous and high risk driving behaviours, and applies innovative policing practices in areas at high risk for fatal and serious injury crashes. There is a focus on recidivist dangerous road users and effective use of technology to support safer road use.


• Conducted over 578 000 driver screening tests.

• Continued emphasis on detecting dangerous and high risk driving behaviours.

Police


Targets 2018–19

• Continue to target dangerous driving behaviours such as speeding, distraction, drink and drug driving.

2018–19 Budget

2017–18 Estimated


2016–17 Actual


FTEs as at June (No.) 501.5 501.8 509.9 496.7


No major variations.

Activity indicators

2018–19

Projection

2017–18 Estimated

Result 2017–18


Actual

No. of apprehension reports for traffic offences detected by police

20 884 19 033 20 000 19 412

No. of detections of drink driving n.a. 5 322 n.a. 5 227 No. of detections of drug driving n.a. 5 612 n.a. 5 196 No. of speed detection hours (mobile cameras, mobile radars and lasers)

100 000 90 443 86 000 80 090

No. of expiation notices issued for traffic offences n.a. 176 147 n.a. 154 488 No. of driver screening tests conducted 500 000 578 496 500 000 554 495

Sub-program 3.2: Education and Vehicle Collision Prevention


SAPOL collaborates and engages with partners and local communities on road safety issues. This sub-program also includes understanding community needs and responding through the police role in education, collision prevention and road safety programs. SAPOL develops and delivers targeted road safety operations across the state.


• Conducted over 1200 road safety sessions to improve road safety and road user awareness.

• Worked with the community through Traffic Watch complaints to improve road safety.

• Continued emphasis on conducting corporate/statewide traffic operations.

Targets 2018–19

• Continue to conduct road safety programs to educate the public on safe road use practices.

• Continue to work in partnership with the community and key stakeholders to reduce fatalities and serious injuries on South Australian roads.

Police


2018–19 Budget

2017–18 Estimated


2016–17 Actual

$000 $000 $000 $000 Expenses ...................................................................... 26 082 25 797 25 271 24 800 Income .......................................................................... 473 278 297 313 Net cost of sub-program 25 609 25 519 24 974 24 487

FTEs as at June (No.) 167.6 167.8 161.5 158.5



Activity indicators

2018–19

Projection

2017–18 Estimated

Result 2017–18


Actual No. of sessions conducted by the Road Safety Section 1 000 1 220 1 000 1 174 No. of traffic cautions issued as recorded on expiation notices

n.a. 82 572 n.a. 72 256

No. of Traffic Watch complaints received 27 000 29 120 34 000 29 835 No. of fatalities per 100 000 head of population n.a. 5.73 n.a. 4.90 No. of serious injuries per 100 000 head of population n.a. 34.87 n.a. 36.10 No. of casualty crashes (including fatal crashes) per 100 000 head of population

n.a. 297.62 n.a. 382.80

No. of corporate/state-wide traffic operations 33 62 44 44 No. of corporate/state-wide traffic operations that include a rural road safety component

33 62 33 33

Police


South Australia PoliceStatement of comprehensive income

2018–19Budget

2017–18Estimated

Result

2017–18Budget

2016–17

Actual$000 $000 $000 $000

ExpensesEmployee benefit expenses

Salaries, wages, annual and sick leave............................. 587 477 574 670 574 467 559 953Long service leave............................................................. 21 352 21 004 21 000 21 539Payroll tax.......................................................................... 36 411 35 619 35 607 32 406Superannuation.................................................................. 90 566 88 517 88 495 71 257Other.................................................................................. 1 153 1 126 1 126 817

Supplies and servicesGeneral supplies and services........................................... 137 736 143 751 145 499 144 253Consultancy expenses....................................................... 112 110 110 140

Depreciation and amortisation.............................................. 27 926 27 890 27 890 28 079Intra government transfers.................................................... 1 699 1 864 1 528 1 358Other expenses..................................................................... 17 572 17 125 19 736 36 300

Total expenses 922 004 911 676 915 458 896 102

IncomeCommonwealth revenues..................................................... 4 280 — — —Intra-government transfers.................................................... 65 385 63 940 63 790 62 960Fees, fines and penalties...................................................... 8 287 7 892 8 181 8 591Sales of goods and services................................................. 25 612 23 881 24 056 24 309Interest revenues.................................................................. — — — 3Net gain or loss on disposal of assets.................................. — -185 — 118Resources received free of charge....................................... — — — 4 012

Total income 103 564 95 528 96 027 99 993


Income from/expenses to state government

IncomeAppropriation...................................................................... 833 967 817 287 821 399 791 707Other income...................................................................... — 579 — —

ExpensesCash alignment.................................................................. — 34 895 — 832

Net income from/expenses to state government 833 967 782 971 821 399 790 875

Total comprehensive result 15 527 -33 177 1 968 -5 234

Police


South Australia PoliceStatement of financial position

2018–19Budget

2017–18Estimated

Result

2017–18Budget

2016–17

Actual$000 $000 $000 $000

AssetsCurrent assetsCash and cash equivalents................................................... 187 204 157 444 164 661 174 225Receivables.......................................................................... 5 567 5 438 6 006 6 033Inventories............................................................................ 490 490 307 490Other current assets............................................................. 3 218 3 178 4 077 3 138Non-current assets held for sale........................................... 10 378 10 378 9 893 10 378

Total current assets 206 857 176 928 184 944 194 264

Non current assetsInvestment properties........................................................... — — 1 190 —Land and improvements....................................................... 302 453 312 071 291 640 322 460Plant and equipment............................................................. 51 579 41 574 77 325 33 045Intangible assets................................................................... 7 541 14 709 4 510 21 683

Total non-current assets 361 573 368 354 374 665 377 188

Total assets 568 430 545 282 559 609 571 452

LiabilitiesCurrent liabilitiesPayables............................................................................... 66 239 65 025 49 692 64 535Employee benefits

Salaries and wages........................................................... 21 801 20 100 28 704 18 399Annual leave..................................................................... 37 309 36 946 34 417 36 583Long service leave............................................................ 15 411 15 080 14 801 14 749

Short-term provisions............................................................ 20 486 20 018 19 052 19 550Other current liabilities.......................................................... 581 560 541 529

Total current liabilities 161 827 157 729 147 207 154 345

Non current liabilitiesLong-term employee benefits

Long service leave............................................................ 190 237 189 379 185 028 188 521Other................................................................................. 3 382 3 382 4 774 3 382

Long-term provisions............................................................ 83 577 80 402 65 167 77 227Other non-current liabilities................................................... 3 158 3 668 3 577 4 078

Total non-current liabilities 280 354 276 831 258 546 273 208

Total liabilities 442 181 434 560 405 753 427 553

Net assets 126 249 110 722 153 856 143 899

Equity

Contributed capital................................................................ 85 220 85 220 85 220 85 220Retained earnings................................................................. -100 802 -116 329 -73 195 -83 152Asset revaluation reserve..................................................... 141 831 141 831 141 831 141 831

Total equity 126 249 110 722 153 856 143 899

Balances as at 30 June end of period.

Police


South Australia PoliceStatement of cash flows

2018–19Budget

2017–18Estimated

Result

2017–18Budget

2016–17

Actual$000 $000 $000 $000

Operating activitiesCash outflowsEmployee benefit payments................................................... 733 269 717 246 717 005 683 965Payments for supplies and services...................................... 138 052 143 955 145 803 128 280GST paid................................................................................ — — — 15 960Intra-government transfers..................................................... 1 699 1 864 1 528 1 358Other payments..................................................................... 13 498 13 051 15 662 15 033

Cash used in operations 886 518 876 116 879 998 844 596

Cash inflowsIntra-government transfers..................................................... 65 385 63 940 63 790 83 831Commonwealth receipts........................................................ 4 280 — — —Fees, fines and penalties....................................................... 8 287 7 892 8 181 8 591Sales of goods and services.................................................. 25 496 23 765 23 940 23 087Interest received.................................................................... — — — 3GST received......................................................................... — — — 16 471Other receipts........................................................................ 8 8 8 —

Cash generated from operations 103 456 95 605 95 919 131 983

State government

Appropriation.......................................................................... 833 967 817 287 821 399 791 707Other receipts........................................................................ — 579 — —Payments

Cash alignment................................................................... — 34 895 — 832

Net cash provided by state government 833 967 782 971 821 399 790 875

Net cash provided by (+)/used in (-) operating activities 50 905 2 460 37 320 78 262

Investing activities

Cash outflowsPurchase of property, plant and equipment........................... 21 620 19 919 19 995 19 491

Cash used in investing activities 21 620 19 919 19 995 19 491

Cash inflowsProceeds from sale of property, plant and equipment........... 475 678 953 358

Cash generated from investing activities 475 678 953 358

Net cash provided by (+)/used in (-) investing activities -21 145 -19 241 -19 042 -19 133

Net increase (+)/decrease (-) in cash equivalents 29 760 -16 781 18 278 59 129

Cash and cash equivalents at the start of the period 157 444 174 225 146 383 115 096

Cash and cash equivalents at the end of the period 187 204 157 444 164 661 174 225

Non cash transactions

Assets received (+)/donated (-) free of charge...................... — — — 4 012

Police


Administered items for the South Australia PoliceStatement of comprehensive income

2018–19Budget

2017–18Estimated

Result

2017–18Budget

2016–17

Actual$000 $000 $000 $000


Salaries, wages, annual and sick leave............................. 474 465 465 401Supplies and services

General supplies and services........................................... 2 514 2 451 2 451 2 310Grants and subsidies............................................................ 67 63 63 60Intra government transfers.................................................... 13 987 11 356 13 136 11 468Other expenses..................................................................... 70 531 68 814 72 673 66 605

Total expenses 87 573 83 149 88 788 80 844

IncomeIntra-government transfers.................................................... 2 486 2 425 2 425 2 310Fees, fines and penalties...................................................... 84 252 79 905 85 544 77 932Sales of goods and services................................................. 140 138 138 —Other income........................................................................ 162 157 157 141

Total income 87 040 82 625 88 264 80 383


IncomeAppropriation...................................................................... 533 524 524 690

Net income from/expenses to state government 533 524 524 690

Total comprehensive result — — — 229

Police


Administered items for the South Australia PoliceStatement of financial position

2018–19Budget

2017–18Estimated

Result

2017–18Budget

2016–17

Actual$000 $000 $000 $000

AssetsCurrent assetsCash and cash equivalents................................................... 14 110 14 109 10 782 14 108Receivables.......................................................................... 216 216 210 216


Total assets 14 326 14 325 10 992 14 324


Salaries and wages........................................................... 2 1 2 —Other current liabilities.......................................................... 7 182 7 182 6 866 7 182



Net assets 833 833 604 833

Equity

Retained earnings................................................................. 833 833 604 833

Total equity 833 833 604 833


Police


Administered items for the South Australia PoliceStatement of cash flows

2018–19Budget

2017–18Estimated

Result

2017–18Budget

2016–17

Actual$000 $000 $000 $000

Operating activitiesCash outflowsEmployee benefit payments................................................... 473 464 464 412Payments for supplies and services...................................... 2 514 2 451 2 451 2 306Grants and subsidies............................................................. 67 63 63 60Intra-government transfers..................................................... 13 987 11 356 13 136 11 533Other payments..................................................................... 70 531 68 814 72 673 63 712


Cash inflowsIntra-government transfers..................................................... 2 486 2 425 2 425 2 304Fees, fines and penalties....................................................... 84 252 79 905 85 544 77 932Sales of goods and services.................................................. 140 138 138 284Other receipts........................................................................ 162 157 157 141


State government

Appropriation.......................................................................... 533 524 524 690

Net cash provided by state government 533 524 524 690

Net cash provided by (+)/used in (-) operating activities 1 1 1 3 328

Net increase (+)/decrease (-) in cash equivalents 1 1 1 3 328



Police


Summary of major variations

Statement of comprehensive income — controlled

Expenses

Major variances between 2018–19 Budget and 2017–18 Estimated Result

The $10.3 million increase is primarily due to:

• additional police resources in 2018–19 ($23.3 million)

• a once off reclassification of expenditure from operating to investing in 2017–18 ($4.5 million)

• funding for extended metropolitan police station opening hours ($2.3 million)

• funding for civilian prosecutors ($1.9 million)

partially offset by

• increased operating savings measures in 2018–19 ($21.8 million).

Major variances between 2017–18 Estimated Result and 2017–18 Budget

The $3.8 million decrease is primarily due to a once off reclassification of expenditure from operating to investing in 2017–18 ($4.5 million).

Major variances between 2017–18 Estimated Result and 2016–17 Actual


• additional police resources in 2017–18 ($42.6 million)

partially offset by

• first time recognition of provision in 2016–17 for claims arising from the independent actuarial assessment arising from the Income and Injury Protection policy ($15.2 million)

• operating savings measures ($9.4 million).

Income


The $8.0 million increase is primarily due to Commonwealth funding received under the Indigenous Advancement Strategy, under the COAG Increasing Police Presence in Remote Communities Budget Measure, the specifics of which are subject to further negotiation with the relevant community ($4.3 million).




The $4.5 million decrease is primarily due to resources received free of charge for helicopter equipment from the Attorney-General’s Department in 2016–17 ($3.7 million).

Police


Statement of financial position — controlled


The $29.9 million increase in current assets is primarily due to:

• an increase in accrual appropriation reflecting higher depreciation expense than investing cash payments, which is reported in cash and cash equivalents ($23.8 million)

• Commonwealth Government funding received under the Indigenous Advancement Strategy ($4.3 million).

The $6.8 million decrease in non-current assets is primarily due to:

• depreciation of land and improvements in 2018–19 ($27.9 million)

• sale of property plant and equipment in 2018–19 ($0.5 million)

partially offset by

• the purchase of property, plant and equipment in line with SAPOL’s capital investment program in 2018–19 ($21.6 million).

The $7.6 million increase in total liabilities is primarily due to increases in employee entitlements.


The $8.0 million decrease in current assets is primarily due to:

• surplus cash returned to the Consolidated Account in accordance with the cash alignment policy ($34.9 million)

partially offset by

• recognising the impact of 2016–17 actual closing balances in the 2017–18 Estimated Result ($27.2 million).

The $6.3 million decrease in non-current assets is primarily due to

• recognising the impact of 2016–17 actual closing balances on the 2017–18 Estimated Result ($6.3 million)

• carry over of major capital projects underspend into 2018–19 ($4.6 million)

partially offset by

• a once off reclassification of expenditure from operating to investing in 2017–18 ($4.5 million).

The $28.8 million increase in total liabilities is primarily due to recognising the impact of 2016–17 actual closing balances in the 2017–18 Estimated Result ($28.5 million).


The $17.3 million decrease in current assets is primarily due to:

• a return of surplus cash to the Consolidated Account in accordance with the cash alignment policy ($34.9 million)

partially offset by

• an increase in accrual appropriation in 2017–18 reflecting higher depreciation expense than investing cash payments, which is reported in cash and cash equivalents ($18.3 million).

Police


The $8.8 million decrease in non-current assets is primarily due to:

• depreciation in 2017–18 ($27.9 million)

• sale of property plant and equipment in 2017–18 ($0.7 million)

partially offset by

• the purchase of property, plant and equipment in line with SAPOL’s capital investment program in 2017–18 ($19.9 million).

The $7.0 million increase in total liabilities is primarily due to increases in employee entitlements.

Statement of cash flows — controlled


The movement in cash outflow and inflows are generally consistent with the changes above and under the statement of comprehensive income.




The $16.8 million decrease in cash and cash equivalents at end of financial year is primarily due to:

• a return of surplus cash to the Consolidated Account in accordance with the cash alignment policy ($34.9 million)

partially offset by

• an increase in accrual appropriation ($18.3 million).

Statement of comprehensive income — administered items


The $4.4 million increase in expenses is primarily due to higher transfer of payments to the consolidated account associated with increased income.

The $4.4 million increase in income is primarily due to higher expiation fee revenue relating to road safety initiatives including additional safety cameras, timing of fixed cameras becoming operational and indexation increases in 2018–19.


The $5.6 million decrease in expense is primarily due to lower transfer of payments to the consolidated account associated with lower income.

The $5.6 million decrease in income is primarily due to lower expiation revenue as a result of cameras being offline due to camera upgrades and roadside works and changes in driver or payment behaviour.

Police



The $2.3 million increase in expenses is primarily due to higher transfer of payments to the consolidated account associated with increased income.

The $2.2 million increase in income is primarily due to higher expiation fee revenue relating to road safety initiatives including additional safety cameras, timing of fixed cameras becoming operational and indexation increases in 2017–18.

Statement of financial position — administered items


Statement of cash flows — administered items


Additional information for administered items

Additional information on administered items is included in the following table.

Police


Additional information for administered items for South Australia Police Statement of cash flows

2018–19 Budget

2017–18 Estimated


2016–17 Actual

$000 $000 $000 $000

Operating activities

Cash outflows

Employee benefit payments Commissioner of Police .................................................... 473 464 464 412

Payments for supplies and services Public Private Partnership Costs — Courts Administration Authority .................................................... 2 510 2 449 2 449 2 306 SA Police and Emergency Service Games ....................... 4 2 2 —

Grants and subsidies SA Water — concession for emergency services ............. 67 63 63 60

Intra-government transfers Victims of Crime Levy ....................................................... 13 841 11 211 12 991 11 393 Other Intra-government transfers ...................................... 146 145 145 140

Other payments Payments to Consolidated Account .................................. 70 531 68 814 72 673 63 712

Cash used in operations 87 572 83 148 88 787 78 023 Cash inflows Intra-government transfers

Public Private Partnership Costs — Courts Administration Authority .................................................... 2 486 2 425 2 425 2 304

Fees, fines and penalties Infringement Notice Scheme — expiated fee .................... 70 422 68 705 72 564 66 605 Victims of Crime Levy ....................................................... 13 830 11 200 12 980 11 327

Sales of goods and services Exhibit/unclaimed property ................................................ 136 136 136 284 SA Police and Emergency Service Games ....................... 4 2 2 —

Other receipts Other receipts ................................................................... 162 157 157 141

Cash generated from operations 87 040 82 625 88 264 80 661 State government Appropriation

Appropriation..................................................................... 533 524 524 690 Net cash provided by state government 533 524 524 690

Net cash provided by (+)/used in (-) operating activities 1 1 1 3 328

Net increase (+)/decrease (-) in cash equivalents 1 1 1 3 328

Cash and cash equivalents at the start of the financial year (as at 1 July) 14 109 14 108 10 781 10 780

Cash and cash equivalents at the end of the financial year (as at 30 June) 14 110 14 109 10 782 14 108

Police


Agency: Department of the Premier and Cabinet

Premier Minister for Recreation, Sport and Racing


Premier and Cabinet


Contents

Objective .......................................................................................................................................... 40 Ministerial responsibilities ................................................................................................................ 40 Ministerial office resources .............................................................................................................. 41 Workforce summary ........................................................................................................................ 41 Program net cost of services summary ........................................................................................... 43 Key agency outputs ......................................................................................................................... 44 Investing expenditure summary ...................................................................................................... 45 Program 1: Premier and Cabinet Policy and Support .................................................................. 46 Program 2: Agent-General ........................................................................................................... 48 Program 3: State Coordinator-General ........................................................................................ 50 Program 4: Support Services and Community Programs ............................................................ 52 Program 5: Office of the Economic Development Board ............................................................. 53 Program 6: Information and Communication Technology Services ............................................ 54 Program 7: Aboriginal Affairs and Reconciliation ........................................................................ 56 Program 8: Multicultural Affairs .................................................................................................... 58 Program 9: Arts South Australia................................................................................................... 60 Program 10: Veterans’ Affairs ........................................................................................................ 68 Program 11: Recreation, Sport and Racing ................................................................................... 70 Financial statements ....................................................................................................................... 73 Summary of major variations........................................................................................................... 81 Additional information for administered items ................................................................................. 85

Premier and Cabinet


Objective

The Department of the Premier and Cabinet delivers specialist policy advice to the Premier and ministers and supports the Cabinet process. It also has overarching responsibility for Commonwealth-state relations and manages the Premier’s Council of Australian Governments (COAG) agenda.

The department leads the implementation of South Australia’s strategic priorities and policy commitments in the areas of economic and social development, international relationships and strengthening engagement between government and the community.

The department provides leadership across government policy development on Aboriginal community support, multicultural affairs and veterans support and services. The department is also responsible for programs targeted at maximising the social and economic contribution made by the arts.



The Hon. SS Marshall Premier

1. Premier and Cabinet Policyand Support

Nil

2. Agent-General Nil 3. State Coordinator-General Nil 4. Support Services and

Community ProgramsNil

5. Office of the EconomicDevelopment Board

Nil

6. Information andCommunication TechnologyServices

Nil

7. Aboriginal Affairs andReconciliation

Nil

8. Multicultural Affairs Nil 9. Arts South Australia 9.1 State Library and Statewide

Information Services 9.2 Support to Public Libraries and

Community Information Services

9.3 Access to Art, Museum and Heritage Services and Preservation of State Collections

9.4 Arts Industry Development and Access to Artistic Product

10. Veteran’s Affairs Nil

The Hon. CL Wingard Minister for Recreation, Sport and Racing

11. Recreation, Sport and Racing Nil

Premier and Cabinet


Administered items

In addition to the above responsibilities, the agency administers the following items on behalf of the ministers:

• Anangu Pitjantjatjara Yankunytjatjara (APY) Taskforce

• South Australian Stolen Generations Reparations Scheme

• Recreation and Sport Fund

• Sport and Recreation Fund.

Statutes


Ministerial office resources

2018–19 Budget

Cost of provision

Minister $000 FTE

The Hon. SS Marshall ......................................................................... 7 319 45

Workforce summary

FTEs as at 30 June

Agency 2018–19

Budget(a)

2017–18 Estimated


Department of the Premier and Cabinet ............................................. 576.0 700.6 651.3

Administered items for the Department of the Premier and Cabinet ...................................................................................... 2.0 2.0 1.6

Total 578.0 702.6 652.9

Reconciliation to agency FTEs

Add: FTEs transferred out:

Low Carbon Economy Unit and Energy Plan Implementation Taskforce to the Department for Energy and Mining on 1 July 2018 ... –– 12.5 8.1

Mineral Resources and Energy to the Department for Energy and Mining on 1 July 2018 ....................................................................... –– 290.9 273.1

Water Industry Technical and Safety Regulation to the Department for Energy and Mining on 1 July 2018 ................................................ –– 16.4 16.4

Shared Services SA to the Department of Treasury and Finance on 1 July 2018 ...................................................................................... –– 647.9 557.7

Public Sector Performance to the Department of Treasury and Finance on 1 July 2018 ..................................................................... –– 103.6 56.2

Chief Procurement Officer to the Department of Treasury and Finance on 1 July 2018 ..................................................................... –– 64.2 54.7

Electorate Services and Fleet Services to the Department of Treasury and Finance on 1 July 2018 .............................................................. –– 42.9 59.4

Premier and Cabinet


Economic Priorities to the Department of Treasury and Finance on 1 July 2018 ....................................................................................... –– 6.2 5.0

ICT Transformation to the Department of Treasury and Finance on 1 July 2018 ....................................................................................... –– 36.2 16.4

Service SA to the Department of Planning, Transport and Infrastructure on 1 July 2018 ............................................................. –– 255.5 258.4

Less: FTEs transferred in:

Aboriginal Affairs and Reconciliation from the Department of State Development on 1 July 2018 ............................................................. –– 58.5 59.3

Multicultural Affairs from the Department of Human Services on 1 July 2018 ....................................................................................... –– 11.0 11.0

Arts South Australia from the Department of State Development on 1 July 2018 ....................................................................................... –– 79.9 83.2

Veteran’s Affairs from the Department of Treasury and Finance on 1 July 2018 ....................................................................................... –– 7.8 7.8

Office for Recreation, Sport and Racing from the Department of Planning, Transport and Infrastructure on 1 July 2018........................ –– 81.0 71.5

Equals: data published by the Office of the Commissioner for the Public Sector Employment 578.0 1 940.7 1 725.5



Premier and Cabinet




2018–19 Budget

2017–18 Estimated


2016–17 Actual

Program $000 $000 $000 $000

1. Premier and Cabinet Policy and Support ........... 40 811 83 443 51 937 44 516

2. Agent-General .................................................. 1 938 2 323 1 706 2 097

3. State Coordinator-General ................................ 1 413 1 312 1 037 1 255

4. Support Services and Community Programs...... 12 629 15 929 17 095 17 190

5. Office of the Economic Development Board ....... –– 6 048 6 076 1 907

6. Information and Communication Technology Services ........................................................... 16 297 15 066 13 213 11 010

7. Aboriginal Affairs and Reconciliation.................. 12 169 17 875 15 347 14 867

8. Multicultural Affairs ........................................... 4 851 5 107 4 968 4 909

9. Arts South Australia .......................................... 148 430 152 625 153 647 145 968

10. Veterans’ Affairs ............................................... 10 782 1 962 1 488 1 886

11. Recreation, Sport and Racing ........................... 50 029 75 077 72 074 68 419

Total 299 349 376 767 338 588 314 024

Reconciliation to agency net cost of providing services(b)

Add: Net costs transferred out:

Low Carbon Economy Unit and Energy Plan Implementation Taskforce to the Department for Energy and Mining on 1 July 2018 ............................. –– 103 350 10 606 5 823

Mineral Resources and Energy to the Department for Energy and Mining on 1 July 2018 ............................. –– 82 970 59 616 45 077

Water Industry Technical and Safety Regulation to the Department for Energy and Mining on 1 July 2018 ............................................................... –– 183 182 -26

Shared Services SA to the Department of Treasury and Finance on 1 July 2018 ...................................... –– 64 355 63 742 -17 957

Public Sector Performance to the Department of Treasury and Finance on 1 July 2018 ........................ –– 10 783 9 822 6 476

Chief Procurement Officer to the Department of Treasury and Finance on 1 July 2018 ........................ –– 2 310 2 073 802

Electorate Services and Fleet Services to the Department of Treasury and Finance on 1 July 2018 . –– 7 657 7 652 6 797

Economic Priorities to the Department of Treasury and Finance on 1 July 2018 ...................................... –– 1 121 1 578 801

ICT Transformation to the Department of Treasury and Finance on 1 July 2018 ...................................... –– 5 042 5 083 3 547

Service SA to the Department of Planning, Transport and Infrastructure on 1 July 2018 .............................. –– 52 515 607

Less: Net costs transferred in:

Economic Development Board from the Department of Industry and Skills on 1 April 2017 ......................... –– –– –– 1 056

Aboriginal Affairs and Reconciliation from the Department of Industry and Skills on 1 July 2018 ....... –– 17 875 15 347 14 867

Premier and Cabinet



2018–19 Budget

2017–18 Estimated


2016–17 Actual

Program $000 $000 $000 $000

Multicultural Affairs from the Department of Human Services on 1 July 2018 ............................................ –– 5 107 4 968 4 909

Arts South Australia from the Department of Industry and Skills on 1 July 2018 ........................................... –– 152 625 153 647 145 968

Veteran’s Affairs from the Department of Treasury and Finance on 1 July 2018 ...................................... –– 1 962 1 488 1 886

Office for Recreation, Sport and Racing from the Department of Planning, Transport and Infrastructure on 1 July 2018 .......................................................... –– 75 077 72 074 68 419

Equals: Net cost of providing services (as per agency statement of comprehensive income) 299 349 401 944 251 933 128 866

(a) Amounts may differ from 2017–18 Agency Statements due to machinery of government changes and the realignment of corporate overheads across the agency.

(b) The net cost of services for individual programs are shown on a full-year basis, whereas the agency financial statements reflect revenues and expenses from the effective date of the transfer of some programs.

Key agency outputs

The Department of the Premier and Cabinet provides central agency leadership in responding to issues that affect South Australia’s future prosperity. We work collaboratively with other government departments to ensure a whole of government approach is taken in achieving the Premier’s vision for South Australia. Key agency outputs include:

• Support Cabinet in its role as government’s central decision-making body regarding development of new policy or legislation, initiatives and public works with significant costs, major appointments and partnership agreements for Commonwealth Government funding.

• Provide strategic advice to the Premier and Cabinet for collaborating with the Commonwealth Government to ensure funding and investment in South Australia’s best interests.

• Increase awareness of South Australia and drive preference for the state as a destination of choice for foreign investment, migration, study and tourism.

• Drive legislative changes and develop guidelines for proposed developments to be referred to the State Commission Assessment Panel.

• Work with government agencies to modernise and transform government services by coordinating and providing best practice ICT policies and resources across government and delivering digital projects that foster innovation and collaboration between the public and private sectors.

• Provide whole of government policy advice and leadership to support skills development, job creation and sustainable employment for Aboriginal people.

• Develop policies that promote cultural diversity including delivery of grant programs, events, awards, community forums, support programs and resources which contribute to the government’s commitment to support our diverse and vibrant multicultural community.

• Provide funding support programs to South Australian professional artists and industry representatives.

Premier and Cabinet


• Provide support to the veteran community, working closely with the Veteran’s Advisory Council to provide advice about matters relating to South Australia’s veteran community.

• Provide strategic advice and development of policy on sport and active recreation, the provision of funding, recreation and sport planning, infrastructure development, elite sport pathways and the promotion of physical activity.



Estimated

completion

Total project


2017–18 Estimated



Existing projects Adelaide Festival Centre Precinct ........ Dec 2020 75 546 15 070 42 569 41 444 Adelaide Superdrome Upgrade ........... Jun 2020 9 800 5 700 –– –– Arts Grant Management System and Financial Reporting Tool ...............

Dec 2018 729 –– 729 ––

Arts Storage........................................ Jun 2018 1 612 –– –– 1 850 Her Majesty’s Theatre Redevelopment...................................

Jun 2019 1 555 –– 424 ––

Home of Football at State Sports Park.................................................... Jun 2021 19 000 5 000 –– –– SA Athletics Stadium........................... Jun 2019 2 050 2 050 –– –– Sam Willoughby International BMX Track.......................................... Jun 2019 1 300 1 300 –– –– Women’s Memorial Playing Fields ....... Jun 2020 8 000 4 000 –– ––

Total existing projects 119 592 33 120 43 722 43 294

Annual programs Government Information and Communication Technology Services .. n.a. n.a. 5 599 5 937 5 920 Minor Capital Works and Equipment .......................................... n.a. n.a. 5 582 5 246 5 937 Voice Ancillary Equipment and Licences ............................................. n.a. n.a. 606 591 591 Total annual programs 11 787 11 774 12 448

Contributed assets Other contributed assets ..................... n.a. n.a. 300 –– 300 Office Accommodation in Port Adelaide(a) .......................................... n.a. n.a. –– 3 747 3 747

Total contributed assets 300 3 747 4 047 Total investing expenditure 119 592 45 207 59 243 59 789

(a) Office Accommodation in Port Adelaide transferred to the Department of Treasury and Finance as part of machinery of government change from 1 July 2018.

Premier and Cabinet


Program 1: Premier and Cabinet Policy and Support


Coordination and leadership of the strategic economic and policy priorities of the state. Support to the Premier and Cabinet in intergovernmental relations, international engagement and protocol functions, communications, economic analysis and cross government policy.


• Provided whole of government leadership to support the delivery of the government’s key policypriorities, including public value reforms, advice on Cabinet documents, the development of anearly intervention strategy in the area of child protection, and monitoring the implementation ofgovernment commitments. Supported the establishment of new Cabinet processes following theMarch 2018 election.

• Optimised the government's international engagement efforts to drive and give a high profile andbroad remit to building South Australia’s relationship with France to enhance the outcomes of thesubmarine contract, and to maximise business and cultural opportunities between South Australiaand France.

• Maximised outcomes for South Australia in state-Commonwealth negotiations including finalisinga Heads of Agreement on public hospital funding and health reform; funding agreements in theareas of early childhood education, schooling, skills, and housing and homelessness; andarrangements for the National Disability Insurance Scheme.

• Delivered a comprehensive programme of international visits maximising exposure of SouthAustralia’s strategic industrial and economic strengths, and connecting businesses, community,higher education and government to international stakeholders.

• Developed and implemented a framework for the evaluation of the effectiveness of theGovernment of South Australia’s services in the areas of child protection through the EarlyIntervention Research Directorate. Developed Getting it Right Early: South AustralianGovernment’s Prevention and Early Intervention Strategy for Child Abuse and Neglect 2018–19.

• Delivered Open State 2017, connecting South Australia with international, national and localexpertise to solve challenges facing our community, thereby positioning South Australia as atest-bed for ideas that will drive investment.

• Through the Office for Data Analytics, commenced whole of government efforts to innovate theuse of government data through the Vulnerable Children Project to aid strategic planning andenable monitoring of the effectiveness of support services to vulnerable children and their families.

Targets 2018–19

• Lead the implementation of rigorous Cabinet processes across government, including thorough analysis of the risks, costs and benefits of proposals.

• Monitor and support delivery of the government’s priorities and commitments.

• Work with state and Commonwealth Government agencies to enhance South Australia’s security and emergency management preparedness and prevention arrangements.

• Create efficiencies and improve the quality of the government’s communications activities.

• Establish an economic advisory council to provide strategic advice on policy designed to stimulate economic and jobs growth.

Premier and Cabinet


• Through the Office for Data Analytics, provide whole of government leadership for the delivery of dataanalytics to inform service delivery, operations and performance, and complete the VulnerableChildren Project to improve the impact of support services to vulnerable children and their families.

• Continue the international visits program to engage high-level foreign audiences and promote the stateand its competitive advantages and offerings, showcasing South Australia’s strategic industries,businesses, knowledge institutions, community and regions with a view to supporting their furtherexpansion and development.

• Support negotiation of a new national reform agreement for health and education, establishing a newClosing the Gap framework, and hosting the second national Reducing Violence Against WomenSummit.


2018–19 Budget

2017–18 Estimated


2016–17 Actual

$000 $000 $000 $000 Expenses Employee benefit expenses ...................................... 20 469 23 855 22 553 20 395 Supplies and services ............................................... 19 111 29 665 31 397 16 111 Depreciation and amortisation expenses ................... 840 749 753 431 Grants and subsidies ................................................ 5 298 34 788 2 344 9 035 Other expenses ........................................................ 408 408 469 1 479

Total expenses 46 126 89 465 57 516 47 451

Income Commonwealth revenue ........................................... — — — — Grants and subsidies ................................................ 5 171 4 410 4 271 1 183 Fees, fines and penalties .......................................... — 2 — — Sales of goods and services ...................................... — 1 467 1 165 1 656 Net gain or loss from disposal of assets ..................... — — — -21Other income ............................................................ 144 143 143 117

Total income 5 315 6 022 5 579 2 935


FTEs as at 30 June (No.) 165.8 205.9 188.9 152.3


In 2017–18 additional expenditure was incurred for:

• the Fund My Neighbourhood program ($18.9 million)

• government communication activities ($10.0 million)

• the South Australian Health and Medical Research Institute ($2.0 million)

• enhanced security and emergency management preparedness and prevention arrangements ($1.0 million).

Premier and Cabinet


Program 2: Agent-General


The Agent-General’s Office represents the Premier and Government of South Australia in the United Kingdom and Europe to advance the state’s development objectives. The office aims to increase awareness of Adelaide and drive preference for all the state has to offer, principally as a destination for foreign investment, migrants, students, tourists, and as a producer of premium food and wine.


• Continued to raise the profile of South Australia amongst corporate decision makers and persons of influence in order to capture a greater share of United Kingdom and European foreign direct investment projects.

• Implemented promotional campaigns in support of South Australia’s food and wine export and migration objectives.

• Supported visits by the Premier and ministers to the United Kingdom and Europe.

• Strengthened strategic relationships with the Australian High Commission, Austrade offices in the United Kingdom and Europe, and priority industry and commerce associations.

• Continued to facilitate, expand and mobilise the South Australia Club in the United Kingdom to promote the state’s interests.

• Continued and strengthened relationships in France to maximise economic, business and cultural opportunities arising from the Commonwealth selection of Naval Group for the submarine contract.

Targets 2018–19

• Continue to raise the profile of South Australia amongst corporate decision makers and persons of influence in order to capture a greater share of United Kingdom and European foreign direct investment projects.

• Support visits by the Premier and ministers to the United Kingdom and Europe.

• Continue to facilitate, expand and mobilise the South Australia Club in the United Kingdom to promote the state’s interests.

Premier and Cabinet



2018–19 Budget

2017–18 Estimated


2016–17 Actual

$000 $000 $000 $000 Expenses Employee benefit expenses ................................... 863 820 908 1 042 Supplies and services ............................................ 1 122 1 446 734 1 196 Depreciation and amortisation expenses ................ 90 78 66 78 Grants and subsidies ............................................. 114 165 1 11 Other expenses ..................................................... 15 11 4 26

Total expenses 2 204 2 520 1 713 2 353 Income Grants and subsidies ............................................. 98 2 2 5 Sales of goods and services ................................... — 27 5 96 Interest revenue ..................................................... — — — — Net gain or loss from disposal of assets .................. — — — -5 Other income ......................................................... 168 168 — 160 Total income 266 197 7 256


FTEs as at 30 June (No.) 6.0 5.5 6.5 6.5


There are no significant movements.

Premier and Cabinet


Program 3: State Coordinator-General


Actively work to drive investment in South Australia by creating an environment that welcomes private sector development and stimulates job creation in South Australia by reducing delays across all levels of government.


• Assigned a further 11 private sector proposals with a combined estimated value of $280 million, to the State Commission Assessment Panel (SCAP) which is the planning authority for developments when capital works for all stages of the development are completed exceeds $5 million in Metropolitan Adelaide or exceeds $3 million outside Metropolitan Adelaide (threshold values).

• Granted exemption for 434 dwelling units and 126 allotments totalling $84.9 million for the purposes of the Renewing our Streets and Suburbs Stimulus (ROSAS) program.

• Approved Development Plan Consent for the second time for the purpose of Diplomatic Mission development.

• Exercised powers to act as the approving authority for development within The Bend Motorsport Park.

• Supported major investment attraction activities with planning and regulatory advice.

Targets 2018–19

• Continue to exercise powers to assign SCAP as the planning authority for developments that satisfy the prescribed requirements and threshold values of Schedule 10 of the Development Regulations 2008.

• Continue to exercise powers conferred for the purposes of the ROSAS program and Diplomatic Mission development.

• Continue to exercise powers to act as the approving authority for development within The Bend Motorsport Park.

• Continue to support major investment attraction activities with planning and regulatory advice.


2018–19 Budget

2017–18 Estimated


2016–17 Actual

$000 $000 $000 $000 Expenses Employee benefit expenses ................................... 907 837 742 855 Supplies and services ............................................ 559 472 293 316 Depreciation and amortisation expenses ................ 30 18 4 13 Grants and subsidies ............................................. 5 5 1 89 Other expenses ..................................................... 16 12 3 11 Total expenses 1 517 1 344 1 043 1 284

Premier and Cabinet


2018–19 Budget

2017–18 Estimated


2016–17 Actual

$000 $000 $000 $000 Income Grants and subsidies ............................................. 103 2 2 4 Sales of goods and services ................................... — 29 4 26 Net gain or loss from disposal of assets .................. — — — -1 Other income ......................................................... 1 1 — — Total income 104 32 6 29 Net cost of providing services 1 413 1 312 1 037 1 255 FTEs as at 30 June (No.) 5.0 5.0 5.0 5.0



Premier and Cabinet


Program 4: Support Services and Community Programs


Ministerial and support services.


2018–19 Budget

2017–18 Estimated


2016–17 Actual

$000 $000 $000 $000 Expenses Employee benefit expenses ................................... 7 637 11 179 11 821 13 756 Supplies and services ............................................ 5 512 7 408 7 839 6 413 Depreciation and amortisation expenses ................ 301 304 348 273 Grants and subsidies ............................................. 53 78 53 303 Other expenses ..................................................... 176 213 284 240

Total expenses 13 679 19 182 20 345 20 985 Income Grants and subsidies ............................................. 1 038 2 754 2 850 86 Fees, fines and penalties ....................................... — — — — Sales of goods and services ................................... — 483 381 3 725 Net gain or loss from disposal of assets .................. — — — -17 Resources received free of charge ......................... — — — — Other income ......................................................... 12 16 19 1

Total income 1 050 3 253 3 250 3 795 Net cost of providing services 12 629 15 929 17 095 17 190 FTEs as at 30 June (No.) 64.3 101.2 111.8 123.7


The decrease in the 2018–19 budgeted expenses compared to the 2017–18 estimated result is due to:

• cessation of the provision of corporate services to the Department of Treasury and Finance from 1 July 2018 ($2.8 million)

• variations to corporate expenditure allocated across programs ($1.4 million).

The decrease in the 2018–19 budgeted income compared to the 2017–18 revised budget is due to the cessation of the provision of corporate services to the Department of Treasury and Finance from 1 July 2018 ($2.8 million).

Premier and Cabinet


Program 5: Office of the Economic Development Board


Supports the Economic Development Board by providing a secretariat function as well as oversight and management of its assigned budget, including procurement and contracting management functions. The Economic Development Board was dissolved on 30 June 2018.


• Ran a two day International Ageing Well Conference in Adelaide in November 2017.

• Managed the implementation of the packages awarded to the winners and runners up of the Premier’s Ageing Well Innovation Challenge.

• Provided advice to government on possible policy alternatives to assist in the growth of medium sized enterprises operating in South Australia.

• Provided advice to government on improving and enhancing the visitor experience for national and international visitors in South Australia.

• Developed a common decision making framework for assessing arts investment opportunities that will consider economic, social and environmental perspectives that can be used across the sector.


2018–19 Budget

2017–18 Estimated


2016–17 Actual

$000 $000 $000 $000 Expenses Employee benefit expenses ................................... — 1 684 1 636 1 618 Supplies and services ............................................ — 1 663 4 440 763 Depreciation and amortisation expenses ................ — — — — Grants and subsidies ............................................. — 2 954 — 29 Other expenses ..................................................... — — — -3

Total expenses — 6 301 6 076 2 407

Income Grants and subsidies ............................................. — 253 — 500 Other income ......................................................... — — — —

Total income — 253 — 500

Net cost of providing services — 6 048 6 076 1 907

FTEs as at 30 June (No.) — 5.8 5.0 6.8


The Economic Development Board will cease from 2018–19.

The increase in the 2017–18 budgeted expenses compared to the 2016–17 actual expenses is due to commencement of the Ageing Well initiative ($3.0 million).

Premier and Cabinet


Program 6: Information and Communication Technology Services


Provision of specialised information and communication technology (ICT), digital and cyber security services, support and information to government and industry.


• Enhanced capability and capacity to reduce risk and enhanced resilience of government ICT systems.

• Developed StateNet firewall infrastructure to build greater resilience, security and functionality.

• Commenced investigation and user research with citizens and business into digital capability requirements for seamless services and transactions with government.

Targets 2018–19

• Support the growth of the local cyber security industry by establishing a Cyber Security Innovation Node as part of the Australia Government Cyber Security Growth Network initiative, and lead the maturity of cyber security across government.

• Develop an action plan for data services to provide service innovation, entrepreneurship and economic opportunities.

• Continue development of digital capabilities (skills, tools and technology options) in collaboration with government agencies to support a seamless experience for South Australians.

• Publish the D3 Digital Online Toolkit to foster entrepreneurialism and innovation in the development of digital solutions for South Australians.


2018–19 Budget

2017–18 Estimated


2016–17 Actual

$000 $000 $000 $000 Expenses Employee benefit expenses ................................ 14 371 13 396 12 274 13 334 Supplies and services ......................................... 34 867 32 690 31 726 30 292 Depreciation and amortisation expenses ............. 6 028 5 774 5 737 5 437 Grants and subsidies .......................................... 327 564 286 480 Other expenses .................................................. 342 277 306 303

Total expenses 55 935 52 701 50 329 49 846

Income Grants and subsidies .......................................... 2 891 278 391 149 Fees, fines and penalties .................................... 257 259 260 151 Sales of goods and services ................................ 36 463 37 076 36 444 38 482 Net gain or loss from disposal of assets ............... — — — -53 Resources received free of charge ...................... — — — 101 Other income ...................................................... 27 22 21 6

Total income 39 638 37 635 37 116 38 836


FTEs as at 30 June (No.) 138.1 139.0 122.0 124.2

Premier and Cabinet



The movements in 2018–19 compared to 2017–18 are due to variations to corporate expenditure allocated across programs impacting expenses, income and net cost of services.

Premier and Cabinet


Program 7: Aboriginal Affairs and Reconciliation


Empower Aboriginal people to have a stronger voice in decision making across government and within communities, and provide leadership in the promotion of effective governance arrangements.

Provide whole of government policy advice and leadership, support engagement with Aboriginal stakeholders through the provision of culturally appropriate advice to government, facilitate the protection and preservation of Aboriginal heritage and culture, and support the state’s Aboriginal land holding authorities.


• Recognised a further three Aboriginal Regional Authorities through the implementation of the Aboriginal Regional Authority Policy.

• Provided ex gratia payments to members of the Stolen Generations, and funded community projects, as part of the Stolen Generations Reparations Scheme.

• Entered Treaty negotiations with three Aboriginal nations, resulting in the Buthera Agreement being signed with one Aboriginal nation, and a statement of intent to engage in further negotiations signed with another.

Targets 2018–19

• Develop a two year whole of government South Australian Aboriginal Affairs Action Plan, to deliver practical outcomes to Aboriginal South Australians.

• Co-lead South Australia's participation in the Council of Australian Governments process to refresh the Closing the Gap strategy, and develop a South Australian Government implementation plan for the refreshed strategy.

• Recognition of two Recognised Aboriginal Representative Bodies under the Aboriginal Heritage Act 1988.

Premier and Cabinet



2018–19 Budget

2017–18 Estimated


2016–17 Actual

$000 $000 $000 $000 Expenses Employee benefit expenses ................................ 4 266 7 584 6 756 7 361 Supplies and services ......................................... 2 396 4 199 2 741 3 652 Depreciation and amortisation expenses ............. 86 186 189 278 Grants and subsidies .......................................... 6 080 6 309 6 230 4 394 Other expenses .................................................. 1 931 21 81

Total expenses 12 829 19 209 15 937 15 766

Income Grants and subsidies .......................................... 522 1 010 515 529 Fees, fines and penalties .................................... 138 90 — 1 Sales of goods and services ................................ — 207 65 69 Interest revenues ............................................... — — — 15 Net gain or loss from disposal of assets ............... — — — -1 Other income ...................................................... — 27 10 286

Total income 660 1 334 590 899


FTEs as at 30 June (No.) 33.1 58.5 53.0 59.3



• variations to corporate expenditure allocated across programs ($3.1 million)

• abolishment of the Office of the Aboriginal Treaty Commissioner and associated activities ($1.0 million)

• once-off expenditure in 2017–18 relating to the transfer of assets to the Department for Energy and Mining used for the generation of electricity through the Remote Areas Energy Supply (RAES) program ($0.9 million).

Activity indicators

2018–19

Projection

2017–18 Estimated

Result 2017–18


Actual No. of regional authorities recognised under the Aboriginal Regional Authority Policy

This activity will no longer be performed in 2018–19.

n.a. 3 2 3

No. of Aboriginal Nation Building programs delivered This activity will no longer be performed in 2018–19.

n.a. — 3 6

No. of Aboriginal nations engaged in Treaty negotiations This activity will no longer be performed in 2018–19.

n.a. 3 3 n.a.

No. of Recognised Aboriginal Representative Bodies under the Aboriginal Heritage Act 1988

2 1 4 n.a.

Premier and Cabinet


Program 8: Multicultural Affairs


This program supports South Australia's ethnic communities and promotes community capacity and harmony. It includes grant programs to community organisations that provide services to help families and individuals improve their quality of life and strengthen the wellbeing of culturally and linguistically diverse communities, as well as support for multicultural events and initiatives.


• Commenced implementation of the across-government Interpreting and Translating Policy.

• Developed and implemented the Say No to Racism training package for all South Australians.

• Hosted the third biennial South Australian Multicultural Festival in partnership with multiculturalorganisations and a wide range of community groups to celebrate and engage with SouthAustralia's multicultural communities.

• Celebrated the state’s cultural diversity through the 10th annual Governor’s Multicultural Awards.

Targets 2018–19

• Undertake a review of Multicultural SA's funding programs to ensure that an equitable fundingstructure is in place that matches the needs for multicultural organisations to celebrate their culturaltraditions, as well as supports our vulnerable culturally and linguistically diverse communities.

• Undertake a review of the South Australian Multicultural and Ethnic Affairs Commission Act 1980to inform the drafting of new legislation.

• Enrich South Australians’ cultural wellbeing by celebrating diversity through festivals and majorevents, and provide support to community organisations that provide services to culturally andlinguistically diverse individuals, families and communities to improve their quality of life andwellbeing.

Premier and Cabinet



2018–19 Budget

2017–18 Estimated


2016–17 Actual

$000 $000 $000 $000 Expenses Employee benefit expenses ................................... 1 321 1 279 1 279 1 273 Supplies and services ............................................ 269 178 159 92 Depreciation and amortisation expenses ................ — — — — Grants and subsidies ............................................. 3 257 3 409 3 289 3 317 Other expenses ..................................................... 4 241 241 236

Total expenses 4 851 5 107 4 968 4 918

Income Grants and subsidies ............................................. — — — 9 Fees, fines and penalties ....................................... — — — — Sales of goods and services ................................... — — — — Net gain or loss from disposal of assets .................. — — — — Other income ......................................................... — — — — Total income — — — 9


FTEs as at 30 June (No.) 11.0 11.0 11.0 11.0



Premier and Cabinet


Program 9: Arts South Australia


Ensure the state recognises and capitalises on artistic, cultural and economic opportunities arising from the diverse arts and cultural organisations, practitioners, events and physical assets in the state by developing programs that build on cultural heritage and creativity, and providing financial support to the creative industries.

Sub-programs

9.1 State Library and Statewide Information Services

9.2 Support to Public Libraries and Community Information Services

9.3 Access to Art, Museum and Heritage Services and Preservation of State Collections

9.4 Arts Industry Development and Access to Artistic Product


2018–19 Budget

2017–18 Estimated


2016–17 Actual

$000 $000 $000 $000 Expenses Employee benefit expenses ................................ 7 618 9 399 14 100 8 624 Supplies and services ......................................... 9 137 6 701 8 231 6 937 Depreciation and amortisation expenses ............. 8 470 6 129 8 424 6 547 Grants and subsidies .......................................... 134 707 144 275 137 876 131 887 Other expenses .................................................. 124 311 285 2 954

Total expenses 160 056 166 815 168 916 156 949

Income Grants and subsidies .......................................... 1 648 3 661 2 070 3 217 Fees, fines and penalties .................................... — — — — Sales of goods and services ................................ 6 418 6 435 8 891 6 993 Net gain or loss from disposal of assets ............... -300 -300 -300 -1 036 Resources received free of charge ...................... 300 — — — Other income ...................................................... 3 560 4 394 4 608 1 807

Total income 11 626 14 190 15 269 10 981


FTEs as at 30 June (No.) 57.3 79.9 98.0 83.2

Premier and Cabinet


Sub-program 9.1: State Library and Statewide Information Services


Provide library and information services to the public, industry and government agencies.


• Participated in Stage 2 of the National and State Libraries Australasia National Digital Deposit Network (NDDN) project, leading to detailed specifications, procurement authority and a signed deed.

• Presented an exhibition, in association with the National Archives, on the history of Woomera as part of the 68th International Astronautical Congress held in Adelaide in September 2017.

• Launched 'Digital Collections' using Recollect, a new online platform. This will allow the delivery of digital content online from the State Library collections to the public, including access to oral histories, and provide the capacity for the public to add content.

• Undertook a regional State Library Roadshow which presented activities in the south-east at public libraries, community groups, schools and the Mount Gambier Show.

Targets 2018–19

• Present a major exhibition, One Mountain, One River, One Sage: Treasures from the Shandong Library, as part of the agreement with the Shandong Provincial Library and the collaboration between the two libraries.

• Launch of the National edeposit (NED) system enabling South Australian publishers to satisfy their legal deposit obligations by depositing electronic publications through a single national system.

• Digitisation of Sir Ross and Keith Smith papers to make them available online in preparation for centenary of their pioneering flight from London to Australia in December 2019.

• Launch of the State Library touring exhibition Beyond the Stage to be hosted by public libraries across regional South Australia.

• Migrate the South Australians at War website to Digital Collections in time for the 100th anniversary of the signing of the Armistice, November 2018.

2018–19 Budget

2017–18 Estimated


2016–17 Actual

$000 $000 $000 $000 Expenses............................................................ 16 521 17 462 18 503 16 677 Income ............................................................... — — — —

Net cost of sub-program 16 521 17 462 18 503 16 677

FTEs as at 30 June (No.) 3.0 4.0 5.0 4.0


• In 2017–18 increased expenditure was incurred for the completion of the Mortlock Wing of the State Library Restoration project ($0.6 million). The Mortlock Wing was completed in June 2018.

• The movements in 2017–18 compared to 2016–17 are due to variations to corporate expenditure allocated across programs impacting expenses, income and net cost of services.

Premier and Cabinet



2018–19

Target

2017–18 Estimated

Result 2017–18

Target 2016–17

Actual

Percentage of library reference enquiries resolved within agreed customer timeframe

95% 95% 92% 96%

Activity indicators

2018–19

Projection

2017–18 Estimated

Result 2017–18


Actual

No. of State Library visitors Impact of Mortlock works (restricted visibility and access) over an extended period is likely to have contributed to a reduction in visitor numbers in 2017–18.

610 000 597 000 670 000 655 338

No. of State Library website visitors 1 250 000 1 200 000 1 250 000 1 318 208 Amount of external revenue received $1.4m $1.8m $1.3m $1.9m External revenue received as a percentage of total revenue 4% 5% 4% 5%

Sub-program 9.2: Support to Public Libraries and Community Information Services


Provide support and information services to the community and public libraries.


• Continued to implement projects within the Public Library Network's Tomorrow's Libraries strategic plan.

• Commenced implementation of projects contained within the digital strategy across the public library network including a new app for self-registration and mobile version of the online library catalogue.

• Commenced a procurement process for the delivery and mechanical sorting of library materials.

• Continued to implement the joint funded Local Government Association and Libraries Board Workforce strategy report for all staff in the public library network.

Targets 2018–19

• Complete a review of the Tomorrow's Libraries Strategic Plan as agreed by the signatories to the memorandum of administrative arrangement.

• Commence implementation of a rollout of new personal computers and printers to School Community Libraries to standardise the customer experience in the regions.

• Release and promotion of the new library self-registration application to library customers.

• Review of the state-wide digital services, consolidating products where possible, enhancing and applying the network’s digital branding.

Premier and Cabinet


2018–19 Budget

2017–18 Estimated


2016–17 Actual

$000 $000 $000 $000 Expenses............................................................ 19 405 19 550 20 854 19 517 Income ............................................................... — — — —


FTEs as at 30 June (No.) 2.0 2.0 2.0 2.0



Activity indicators

2018–19

Projection

2017–18 Estimated

Result 2017–18


Actual

No. of items purchased and catalogued Public Library Services transitioned to a new procurement system (P2 to BLUEcloud Acquisitions) during December 2016 to February 2017, as a result fewer items were purchased and received in 2016–17. This also meant that more items were ordered later in 2016–17 that arrived during 2017–18 therefore effecting the 2017–18 Estimated Result when compared to the 2017–18 Projection.

320 000 320 000 285 000 220 000

Sub-program 9.3: Access to Art, Museum and Heritage Services and Preservation of State Collections


Provision of museum, visual arts and preservation services that enable the state’s cultural, heritage and arts assets to be maintained and kept accessible to the community.


• Progressed launch of the State History collection (feature collections) on Google Arts and Culture platform.

• Launched the Game Engine: Digital Legends exhibition at the National Motor Museum exploring motor culture and video gaming, and undertook a national tour of Bush Mechanics.

• Presented Colours of Impressionism: Masterpieces from the Musée d'Orsay, which was the one of the highest selling ticketed exhibition in the Art Gallery of South Australia's history.

• Presented an exhibition at the South Australian Museum on the evolution of dinosaurs entitled Dinosaur rEvolution — secrets of survival.

• Presented an exhibition of the work of Arthur Streeton, contained in the Carrick Hill collection, demonstrating the artist's treatment of bush, sea, river and mountains.

• Presented the TARNANTHI Festival of Contemporary Aboriginal and Torres Strait Islander Art at the Art Gallery of South Australia with the involvement of four partner organisations in South Australia.

Premier and Cabinet


Targets 2018–19

• Present an exhibition at the South Australian Museum exploring the world of dogs, drawing on the Museum's collection.

• Undertake a major rehang of the Australian collection in the Art Gallery's Elder Wing to reopen in December 2018.

• Present a major exhibition of the work of Australian artist Ben Quilty at the Art Gallery of South Australia.

• Create a new section of the Carrick Hill Storybook Trail celebrating the work of Australian writer May Gibbs, to coincide with an exhibition of original and rarely seen artworks entitled Close to Nature: May Gibbs & Australian Botanical Art.

• Installation of secure storage for the State Weapons Collection held by the History Trust of South Australia.

2018–19 Budget

2017–18 Estimated


2016–17 Actual

$000 $000 $000 $000 Expenses............................................................... 39 790 40 938 39 752 38 163 Income .................................................................. 5 119 5 729 6 068 2 530


FTEs as at 30 June (No.) 28.0 34.0 42.0 35.0


The increase in the 2017–18 budgeted expenses compared to the 2016–17 actual expenses is due to:

• additional expenditure from 2017–18 for the Art Gallery of South Australia’s TARNANTHI — contemporary Aboriginal and Torres Strait Islander Art Festival ($3.0 million)

partially offset by

• expenditure by the Art Gallery of South Australia for a new international exhibition in 2016–17 ($2.0 million).

The increase in the 2017–18 budgeted income compared to the 2016–17 actual income is due to the additional funding from 2017–18 to the Art Gallery of South Australia from BHP Billiton for the TARNANTHI — Contemporary Aboriginal and Torres Strait Islander Art Festival ($3.0 million).


2018–19

Target

2017–18 Estimated

Result 2017–18

Target 2016–17

Actual

Amount of external revenue received (and per cent of total revenue):

• Art Gallery of South Australia • SA Museum • Carrick Hill • History SA • Artlab

$7.7m (37%) $5.0m (31%) $0.5m (35%) $1.8m (23%) $0.8m (27%)

$9.8m (43%) $4.8m (31%) $0.5m (33%) $2.3m (28%) $0.7m (24%)

$5.9m (31%) $5.0m (31%) $0.5m (35%) $1.6m (21%) $0.8m (27%)

$9.3m (42%) $4.7m (30%) $0.6m (38%) $2.2m (27%) $0.7m (24%)

No. of scientific peer review publications (SA Museum) 120 137 130 189

Premier and Cabinet


Activity indicators

2018–19

Projection

2017–18 Estimated

Result 2017–18


Actual

No. of visitors to the: • Art Gallery of South Australia • SA Museum • Carrick Hill • History SA

800 000 730 000

75 000 540 000

797 000 810 667

73 000 558 000

780 000 725 000

65 000 530 000

724 213 772 705

75 933 605 966

Sub-program 9.4: Arts Industry Development and Access to Artistic Product


Provide services that increase opportunities for artists, cultural tourism, festivals and events and provide for productions, exhibitions, tours and events to the community.


• Supported the delivery of three unique live music events for South Australia through the UNESCO City of Music Events Fund.

• Completed the detailed design for the redevelopment of Her Majesty's Theatre and commenced construction.

• Completed the new Adelaide Festival Centre Northern Promenade and progressed work on upgraded foyers for the Adelaide Festival Theatre. This included additional work to remove residual asbestos identified during the project. Public launch activities were held in early 2018.

• Progressed the development of an Aboriginal arts strategy by consulting widely to identify mechanisms for the objectives and goals of the sector to be realised through partnerships and cross portfolio collaborations.

• Developed and delivered the Made in Adelaide initiative in August 2017, to capitalise on the success of the pilot. The initiative extends the reach, profile and reputation of South Australian artists and festivals in new international markets, and increases Adelaide's visibility as a cultural tourism destination and Australia's festival city.

• Supported the growth of the Adelaide Fringe by making it more viable for artists to tour their work to Adelaide and keeping ticket prices low for audiences.

• Invested in the Adelaide Festival to enable the commissioning and presentation of major international work at the 2018 Festival.

Targets 2018–19

• Progress the development of the South Australian Government Arts Plan, in close consultation and collaboration with the arts, cultural and creative sectors.

• Progress the Her Majesty's Theatre Redevelopment project, finalise foyer and technical equipment upgrades for the Adelaide Festival Theatre and deliver a new play space adjoining Elder Park.

• Support the Adelaide Festival to present three major international works during the 2019 Festival.

• Support the delivery of the third tranche of the Made in Adelaide initiative in London, Glasgow and at the Edinburgh Fringe, with a focus on industry engagement through targeted initiatives in support of South Australian artists and arts companies. Evaluate the outcomes and achievements of this three-year program, including return on investment for artists and organisations.

• Deliver Shandong Culture Week 2018 in Adelaide to meet commitments under the South Australia — Shandong Friendly Cooperation Action Plan 2015–2018.

Premier and Cabinet


2018–19 Budget

2017–18 Estimated


2016–17 Actual

$000 $000 $000 $000 Expenses............................................................ 84 340 88 865 89 807 82 592 Income ............................................................... 6 507 8 461 9 201 8 451


FTEs as at 30 June (No.) 24.3 39.9 49.0 42.2


In 2017–18 the Adelaide Festival Centre Trust was provided with additional support in recognition of revenue lost with the closure of the car park and Festival Theatre ($6.1 million).


2018–19 Target

2017–18 Estimated

Result 2017–18

Target 2016–17

Actual Level of customer satisfaction: attendees at the Adelaide Festival Centre The redevelopment works at the Adelaide Festival Centre and closure of the Festival Theatre for five months in 2017–18, was originally expected to have an impact on customer satisfaction in this period.

80% 80% >60% 81%

Theatre utilisation achieved by the Adelaide Festival Centre The redevelopment works at the Adelaide Festival Centre and closure of the Festival Theatre for five months in 2017–18 had an impact on theatre utilisation in this period. In 2018–19 Her Majesty’s theatre is closed for redevelopment.

66% 69% 45% 78%

Amount of external revenue received (and percentage of total revenue): • Country Arts SA

• State Opera

Limited access to the Festival Theatre in 2017–18 resulted in a decline in State Opera production revenue (external revenue) in this period.

• State Theatre

• Adelaide Festival CentreThe redevelopment works at the Adelaide Festival Centre and closure ofthe Festival Theatre for five months in 2017–18, had an impact on revenue (external revenue) in this period.

$4.1m (43%) $4.0m (71%)

$3.8m (60%)

$24.5m (57%)

$4.5m (45%) $2.6m (62%)

$5.1m (67%)

$21.4m (38%)

$4.3m (46%) $2.6m (61%)

$4.0m (62%)

$13.5m (36%)

$4.1m (44%) $3.0m (66%)

$5.5m (68%)

$25.8m (54%)

Maintain artistic standards: • State Opera

– Assessment by external independent panel eachsession

– Survey audience for response (per cent positive)• State Theatre

– External review/peer panel review (per cent positive)– Survey audience for response (per cent positive)

Very positive

80%

80% 80%

Positive

80%

80% 80%

Positive

80%

80% 80%

Positive

80%

94% 97%

Premier and Cabinet


Activity indicators

2018–19

Target

2017–18 Estimated

Result 2017–18

Target 2016–17

Actual

No. of Independent Makers and Presenters grant applications

220 184 240 249

No. of Independent Makers and Presenters grant applications approved

100 99 100 108

Average size of an Independent Makers and Presenters grant

$10 500 $11 147 $10 500 $9 226

Total no. of attendances achieved by: • Country Arts SA

– Paid seats at performances and exhibition/gallery attendances

– Unpaid attendances In 2017–18, Country Arts SA began recording unticketed community complimentary attendances, with an estimate of 29 000 attending community events in that year. Display of Whyalla Art Prize exhibition at Adelaide Airport resulted in significant increase to unpaid attendances in 2017–18. • State Opera

– Paid seats at performances – Unpaid attendances

Limited access to the Festival Theatre in 2017–18 resulted in a decline in State Opera attendances. • State Theatre

– Paid seats at performances – Unpaid attendances

• Adelaide Festival Centre The redevelopment works at the Adelaide Festival Centre and closure of the Festival Theatre for five months in 2017–18, had an impact on attendances in this period.

86 000

61 000

26 000 5 000

44 900 5 700

820 000

84 000

168 000

9 000 2 000

44 192 6 583

587 770

111 000

24 000

10 000 2 000

45 500 5 000

525 000

114 000

74 000

12 932 2 000

55 301 8 606

811 939

Premier and Cabinet


Program 10: Veterans’ Affairs


Veterans’ Affairs (Veterans SA) supports our ex-servicemen and women and those who support them, by providing a central contact point for information about the state government’s services to veterans across departments, including health, transport, disability and mental health.

Veterans SA provides administrative support to the Veterans’ Advisory Council to ensure veterans receive a voice at the highest levels of government and helps to raise public awareness of the sacrifices made by South Australia’s veterans.


• Worked with SA Health, the veteran community and key stakeholders to deliver the JamieLarcombe Centre and the Partnerships Hub.

• Completed and launched the South Australian Anzac Centenary book project SA in the Great War.

• Developed a strategy for the establishment of a Defence/Veterans hub at Anzac House, TorrensParade Ground, with satellite hubs at Glenside and Edinburgh.

• Worked with the Commonwealth Government to develop appropriate events to commemorate theCentenary of Armistice Day in 2018.

• Assisted the Headstone Project Committee to locate, identify and memorialise World War Oneveterans who returned from conflict and now lie in unmarked graves in South Australia.

• Worked with the Department of Planning, Transport and Infrastructure to relocate the VietnamVeterans Federation following the compulsory acquisition of its Warradale headquarters andclubrooms to facilitate the upgrade of the Oaklands Railway Crossing.

Targets 2018–19

• Work with the Adelaide City Council and the broader veteran community to relocate theDardanelles Cenotaph from its current location in Adelaide's southwest parklands to the northernend of the new Anzac Centenary Memorial Walk.

• Coordinate a program of events in partnership with the Commonwealth Department of Veterans'Affairs and the wider community to commemorate the centenary of Armistice Day on11 November 2018.

• Establish a process for collecting and disseminating data on the number of veterans and ex-servicepersonnel in South Australia who become homeless, experience mental health problems or areincarcerated.

Premier and Cabinet



2018–19 Budget

2017–18 Estimated


2016–17 Actual

$000 $000 $000 $000 Expenses Employee benefit expenses ................................ 699 1 123 1 012 950 Supplies and services ......................................... 812 501 311 533 Depreciation and amortisation expenses ............. — 276 23 262 Grants and subsidies .......................................... 73 678 643 678 Other expenses .................................................. 9 297 46 43 6

Total expenses 10 881 2 624 2 032 2 429

Income Grants and subsidies .......................................... 99 525 525 522 Fees, fines and penalties .................................... — — — — Sales of goods and services ................................ — 137 19 19 Net gain or loss from disposal of assets ............... — — — — Other income ...................................................... — — — 2

Total income 99 662 544 543


FTEs as at 30 June (No.) 4.4 7.8 7.5 7.8


The increase in the 2018–19 budgeted expenses compared to the 2017–18 estimated result is due to the transfer of the completed Anzac Centenary Memorial Garden Walk asset to the Adelaide City Council ($9.3 million).

Premier and Cabinet


Program 11: Recreation, Sport and Racing


Develop stronger, healthier, happier and safer communities through the provision of active sport and recreation strategic policy, programs, services, infrastructure and elite pathways.

This program also includes the provision of strategic policy advice to the Minister on matters relating to the South Australian racing industry.


• Supported 51 projects to upgrade female change room facilities to address barriers to female participation in sport and active recreation.

• South Australia exceeded the national average of children and adults participating in sport or active recreation at least once a week.

• Selected 69 South Australian Sports Institute (SASI)/South Australia based athletes for international benchmark events in 2017 across 14 sports and selected 60 SASI and South Australia based athletes for the 2018 Gold Coast Commonwealth Games Team.

• SASI and South Australia based athletes contributed to 29 per cent of Australia's total gold medal tally and 19 per cent of the total medal tally across nine sports at the 2018 Gold Coast Commonwealth Games.

• Developed the capability and capacity of communities to provide quality recreation and sport participation opportunities for all South Australians.

• Delivered on the strategies identified in the women in sport taskforce action plan.

Targets 2018–19

• A minimum of 40 per cent of sports vouchers issued to support primary school aged children whoare new club participants.

• Equal or exceed the national participation level for adults and children participating in sport orphysical activity at least once a week.

• Implement strategies to increase participation at a grass roots level.

• Develop a State Sport and Active Recreation Infrastructure Plan

• Fifty SASI and South Australia based athletes are selected to represent Australia for internationalbenchmark events in 2018–19 across eight sports.

• To support 50 athletes from non-program sports, including 20 para athletes, through SASI.

Premier and Cabinet



2018–19 Budget

2017–18 Estimated


2016–17 Actual

$000 $000 $000 $000 Expenses Employee benefit expenses ................................ 8 783 8 490 8 080 8 619 Supplies and services ......................................... 6 276 6 876 4 515 5 155 Depreciation and amortisation expenses ............. 8 300 7 890 8 049 8 071 Grants and subsidies .......................................... 35 136 57 485 38 882 55 747 Other expenses .................................................. 329 301 18 375 235

Total expenses 58 824 81 042 77 901 77 827

Income Commonwealth revenues .................................... 2 100 — 582 220 Grants and subsidies .......................................... 4 858 4 658 4 570 7 889 Fees, fines and penalties .................................... — — — — Sales of goods and services ................................ 647 630 508 692 Interest revenues ................................................ — — — 1 Net gain or loss from disposal of assets ............... — — — 21 Other income ...................................................... 1 190 677 167 585

Total income 8 795 5 965 5 827 9 408


FTEs as at 30 June (No.) 91.0 81.0 81.0 71.5



• a review of Office for Recreation, Sport and Racing Grant Programs, resulting in the former government's Synthetic Sporting Surfaces Program and Female Sporting Facilities Program not proceeding with expenditure rounds in 2018–19 ($16 million)

• additional expenditure in 2017–18 associated with:

– support to community sporting clubs ($7.7 million)

– upgrades at Priceline Stadium ($4.5 million)

– upgrades to Goodwood Oval ($2.5 million)

partially offset by additional expenditure in 2018–19 associated with:

• new Grassroots Football, Netball and Cricket Modular Constructions Program ($5 million)

• expanded Sports Vouchers Program ($2.5 million).

The increase in the 2017–18 estimated result expenses compared to the 2017–18 original budget is due to additional expenditure associated with:

• the Synthetic Sporting Surfaces Grant Program ($10 million)

• support for community sporting clubs ($7.7 million)

• upgrades to Goodwood Oval ($2.5 million).

partially offset by

• lease option not exercised by Netball South Australia to transfer of control of Priceline Stadium($17.7 million).

Premier and Cabinet


The decrease in the 2017–18 budgeted income compared to the 2016–17 actual income is due to once-off funding received in 2016–17 from the Planning and Development Fund to support the Adelaide Comets Football Club build a multi-purpose facility in Ellis Park ($3.5 million).

The increase in the 2018–19 budgeted income is associated with a contribution from the Commonwealth Government for Adelaide Superdrome Upgrades ($2.1 million).


2018–19

Target

2017–18 Estimated

Result 2017–18

Target 2016–17

Actual

No. of training and development services provided to the active recreation and sports industry

78 91 104 110

No. of state active recreation and sports facilities developed or maintained

28 28 28 28

No. of athletes scholarships and services provided 220 230 240 229 Number of grant agreements managed 1 450 1 450 1 143 1 243

Number of sport vouchers redeemed Children participating in sport or active recreation.

68 000 57 000 59 466 53 432

Premier and Cabinet


Premier and CabinetStatement of comprehensive income

2018–19Budget

2017–18Estimated

Result

2017–18Budget

2016–17

Actual$000 $000 $000 $000


Salaries, wages, annual and sick leave............................. 47 513 151 057 147 840 119 401Long service leave............................................................. 3 372 6 438 6 394 3 881Payroll tax.......................................................................... 3 832 10 094 9 984 6 924Superannuation.................................................................. 9 599 20 637 20 470 14 233Other.................................................................................. 2 618 4 005 4 005 3 731

Supplies and servicesGeneral supplies and services........................................... 79 005 246 400 156 265 115 739Consultancy expenses....................................................... 1 044 3 370 3 858 5 367

Depreciation and amortisation.............................................. 24 145 11 697 11 697 8 364Borrowing costs.................................................................... 12 12 12 1Grants and subsidies............................................................ 70 549 96 332 34 148 43 694Intra government transfers.................................................... 114 501 8 582 1 089 3 435Other expenses..................................................................... 10 712 1 846 1 996 1 327

Total expenses 366 902 560 470 397 758 326 097

IncomeCommonwealth revenues..................................................... 2 100 1 223 69 211Intra-government transfers.................................................... 15 484 64 094 56 408 38 784Other grants.......................................................................... 944 373 313 510Fees, fines and penalties...................................................... 395 21 792 21 775 6 132Sales of goods and services................................................. 43 528 61 965 60 292 149 623Net gain or loss on disposal of assets.................................. -300 — — -1 045Resources received free of charge....................................... 300 4 649 3 747 101Other income........................................................................ 5 102 4 430 3 221 2 915

Total income 67 553 158 526 145 825 197 231



IncomeAppropriation...................................................................... 299 804 301 116 255 767 146 039Other income...................................................................... — 134 412 — 6 990

ExpensesCash alignment.................................................................. — — — 4 836


Total comprehensive result 455 33 584 3 834 19 327

Premier and Cabinet


Premier and CabinetStatement of financial position

2018–19Budget

2017–18Estimated

Result

2017–18Budget

2016–17

Actual$000 $000 $000 $000

AssetsCurrent assetsCash and cash equivalents................................................... 115 612 154 920 44 056 127 258Receivables.......................................................................... 11 212 30 344 18 175 30 343Inventories............................................................................ 235 235 78 235Other current assets............................................................. 2 570 2 745 2 748 2 745Non-current assets held for sale........................................... 8 714 372 — 372


Non current assetsLand and improvements....................................................... 471 906 50 133 12 576 40 893Plant and equipment............................................................. 32 293 30 818 29 232 26 632Heritage assets..................................................................... 4 211 84 27 84Intangible assets................................................................... 5 750 8 425 3 587 10 374Other non-current assets...................................................... 49 49 1 482 49


Total assets 652 552 278 125 111 961 238 985


Salaries and wages........................................................... 1 194 3 265 2 696 2 714Annual leave..................................................................... 3 618 13 254 9 980 13 216Long service leave............................................................ 1 980 4 476 7 260 4 431Other................................................................................. 331 934 707 934

Short-term provisions............................................................ 184 633 926 631Other current liabilities.......................................................... — 8 498 329 8 498



Long service leave............................................................ 12 649 39 514 28 761 39 003Other................................................................................. — 107 — 107

Long-term provisions............................................................ 381 3 726 1 930 3 627Other non-current liabilities................................................... — 180 180 540



Net assets 613 211 144 245 39 775 106 282

Premier and Cabinet


Premier and CabinetStatement of financial position

2018–19Budget

2017–18Estimated

Result

2017–18Budget

2016–17

Actual$000 $000 $000 $000

Equity

Contributed capital................................................................ 52 387 5 295 5 295 916Retained earnings................................................................. 559 720 138 275 33 805 104 691Asset revaluation reserve..................................................... 1 104 675 675 675

Total equity 613 211 144 245 39 775 106 282Balances as at 30 June end of period.

Premier and Cabinet


Premier and CabinetStatement of cash flows

2018–19Budget

2017–18Estimated

Result2017–18Budget

2016–17Actual

$000 $000 $000 $000Operating activitiesCash outflowsEmployee benefit payments................................................... 65 049 190 965 187 427 142 561Payments for supplies and services...................................... 79 855 249 936 160 289 116 086Interest paid........................................................................... 12 12 12 1Grants and subsidies............................................................. 70 549 96 332 34 148 24 586GST paid................................................................................ — — — 2 622Intra-government transfers..................................................... 114 501 8 582 1 089 3 435Other payments..................................................................... 1 336 1 769 1 919 1 739


Cash inflowsIntra-government transfers..................................................... 15 484 64 094 56 408 43 634Commonwealth receipts........................................................ 2 100 1 223 69 1 325Other grants........................................................................... 944 373 313 510Fees, fines and penalties....................................................... 395 21 792 21 775 15 500Sales of goods and services.................................................. 43 527 61 964 60 291 144 833GST received......................................................................... — — — 1 406Other receipts........................................................................ 5 102 4 430 3 221 4 836


State government

Appropriation.......................................................................... 299 804 301 116 255 767 146 039Other receipts........................................................................ — 134 412 — 6 990Payments

Cash alignment................................................................... — — — 4 836




Cash outflowsPurchase of property, plant and equipment........................... 44 907 18 525 18 621 4 891Purchase of intangibles.......................................................... — — — 4 190Advances paid....................................................................... — — — 400


Cash inflowsProceeds from sale of property, plant and equipment........... 191 — — -854

Cash generated from investing activities 191 — — -854


Premier and Cabinet


Premier and CabinetStatement of cash flows

2018–19Budget

2017–18Estimated

Result

2017–18Budget

2016–17

Actual$000 $000 $000 $000

Financing activities

Cash outflowsCash transfers from restructuring activities............................ 30 646 — — —

Cash used in financing activities 30 646 — — —

Cash inflowsCapital contributions from state government......................... — 4 379 4 379 —

Cash generated from financing activities — 4 379 4 379 —

Net cash provided by (+)/used in (-) financing activities -30 646 4 379 4 379 —

Net increase (+)/decrease (-) in cash equivalents -39 308 27 662 -1 282 58 872




Assets received (+)/donated (-) free of charge...................... -8 997 4 649 3 747 101

Premier and Cabinet


Administered items for the Department of the Premier and CabinetStatement of comprehensive income

2018–19Budget

2017–18Estimated

Result

2017–18Budget

2016–17

Actual$000 $000 $000 $000


Salaries, wages, annual and sick leave............................. 728 615 508 517Payroll tax.......................................................................... 8 8 8 —Superannuation.................................................................. 36 35 35 —Other.................................................................................. 9 9 9 17

Supplies and servicesGeneral supplies and services........................................... 300 — — 19

Grants and subsidies............................................................ 4 436 — — —Intra government transfers.................................................... 10 588 1 555 650 1 555 650 358 929Other expenses..................................................................... 1 094 258 793 273 033 68 576

Total expenses 17 199 1 815 110 1 829 243 428 058

IncomeIntra-government transfers.................................................... 4 100 874 891 874 891 358 929Fees, fines and penalties...................................................... — 199 199 —Sales of goods and services................................................. 20 — — 13Interest revenues.................................................................. 4 4 4 —Other income........................................................................ 200 937 287 951 527 66 505

Total income 4 324 1 812 381 1 826 621 425 447


IncomeAppropriation...................................................................... 12 577 2 643 2 536 2 480


Total comprehensive result -298 -86 -86 -131

Premier and Cabinet


Administered items for the Department of the Premier and CabinetStatement of financial position

2018–19Budget

2017–18Estimated

Result

2017–18Budget

2016–17

Actual$000 $000 $000 $000

AssetsCurrent assetsCash and cash equivalents................................................... 2 734 22 505 4 493 22 583Receivables.......................................................................... — 11 647 — 11 647Other current assets............................................................. — — 1 —


Total assets 2 734 34 152 4 494 34 230

LiabilitiesCurrent liabilitiesPayables............................................................................... 170 29 960 — 29 960Employee benefits

Salaries and wages........................................................... 24 16 22 8Other current liabilities.......................................................... — 1 588 1 861 1 588

Total current liabilities 194 31 564 1 883 31 556

Total liabilities 194 31 564 1 883 31 556

Net assets 2 540 2 588 2 611 2 674

Equity

Retained earnings................................................................. 2 540 2 588 2 611 2 674

Total equity 2 540 2 588 2 611 2 674


Premier and Cabinet


Administered items for the Department of the Premier and CabinetStatement of cash flows

2018–19Budget

2017–18Estimated

Result

2017–18Budget

2016–17

Actual$000 $000 $000 $000

Operating activitiesCash outflowsEmployee benefit payments................................................... 773 659 552 532Payments for supplies and services...................................... 300 — — —Grants and subsidies............................................................. 4 436 — — —Intra-government transfers..................................................... 10 588 1 555 650 1 555 650 358 929Other payments..................................................................... 1 094 258 793 273 033 38 891

Cash used in operations 17 191 1 815 102 1 829 235 398 352

Cash inflowsIntra-government transfers..................................................... 4 100 874 891 874 891 358 929Fees, fines and penalties....................................................... — 199 199 3Sales of goods and services.................................................. 20 — — 13Interest received.................................................................... 4 4 4 —Other receipts........................................................................ 200 937 287 951 527 54 859

Cash generated from operations 4 324 1 812 381 1 826 621 413 804

State government

Appropriation.......................................................................... 12 577 2 643 2 536 2 480


Net cash provided by (+)/used in (-) operating activities -290 -78 -78 17 932


Cash outflowsCash transfers from restructuring activities............................ 19 481 — — —

Cash used in financing activities 19 481 — — —

Net cash provided by (+)/used in (-) financing activities -19 481 — — —

Net increase (+)/decrease (-) in cash equivalents -19 771 -78 -78 17 932



Premier and Cabinet




Expenses


The $193.6 million decrease in expenses is primarily due to:

• the net impact as a result of machinery of government changes ($147.9 million)

• expenditure in 2017–18 for:

– the Fund My Neighbourhood grant program ($18.9 million).

– communications activities ($10.0 million).

– the Renewable Technology Fund ($9.2 million).

– the South Australian Health and Medical Research Institute ($2.0 million)

– enhanced security and emergency management preparedness and prevention arrangements($1.0 million)

• decreased expenditure in 2018–19 associated with new savings measures ($3.9 million)

• abolishment of the Office of the Economic Development Board ($2.0 million).


The $162.7 million increase in expenses is primarily due to:

• additional expenditure for:

– the implementation of South Australia’s energy plan ($83.5 million)

– the Fund My Neighbourhood grant program ($18.9 million)

– the Renewable Technology Fund ($9.2 million)

– communications activities ($10.0 million)

– a hydrogen refuelling station and bus fuel cell trial ($4.8 million)


– the incentivise gas production from South Australian gas fields grant program ($24.0 million)

– enhanced security and emergency management preparedness and prevention arrangements($1.0 million)

• carryover of expenditure from 2016–17 associated with the completion of the CHRIS 21 payrollreform project ($1.6 million).



• additional funding in 2017–18 for:

– implementation of South Australia’s energy plan ($83.5 million)

– the incentivise gas production from South Australian gas fields grant program ($24.0 million)

– the Fund My Neighbourhood grant program ($18.9 million)

– communications activities ($10.0 million)

– the Renewable Technology Fund ($9.2 million)

Premier and Cabinet




– enhanced security and emergency management preparedness and prevention arrangements($1.0 million).

• Resources and Energy Group being in the department for a full financial year in 2017–18 and onlya part year for 2016–17 ($75.5 million)

• carryover of expenditure from 2016–17 associated with the completion of the CHRIS 21 payrollreform project ($1.6 million).

Income


The $91.0 million decrease in income is primarily due to:

• The net impact as a result of the machinery of government changes ($90.9 million).


The $12.7 million increase in income is primarily due to:

• additional revenue for:


– the South Australia Leadership Academy ($1.2 million)

– reinstating Natural Resource Management Board invoicing arrangements for the provision ofshared services ($1.0 million)

– Coompana Drilling Program Collaboration with Geoscience Australia ($1.0 million)

– Flexibility for the Future initiative ($0.5 million)

– the Port Pirie Transformation project ($0.4 million).

Major variances between 2017–18 Estimated Result and 2016–17 Actual include:


• the cessation of Shared Services SA charging arrangements effective 1 July 2017 ($86.5 million).

partially offset by

• Resources and Energy Group being in the department for a full financial year in 2017–18 and onlya part year for 2016–17 ($32.8 million)

• additional income in 2017–18 for:

– support of trade mission and other international engagement activities ($3.0 million)


– the South Australian Leadership Academy ($1.2 million)

– Coompana Drilling Program Collaboration with Geoscience Australia ($1.0 million)

– The Flexibility for the Future initiative ($0.5 million)

– the Port Pirie Transformation project ($0.4 million)

• an office fit-out transferred in 2017–18 from the Department of Planning, Transport andInfrastructure ($3.7 million).

Premier and Cabinet




The $365.5 million increase in total assets is primarily due to:

• the net impact as a result of the machinery of government changes ($342.5 million).



• transfer of opening balances associated with the programs transferred from the Department of State Development as a result of machinery of government changes ($111.8 million)

• deferred capital expenditure relating to programs transferred as a result of machinery of government changes ($16.7 million).



• transfer of opening balances associated with the programs transferred from the Department of StateDevelopment as a result of machinery of government changes ($45.1 million).



The movements in cash outflows and inflows are generally consistent with the changes discussed above under the statement of comprehensive income and the statement of financial position.







The $1798 million decrease in expenses is primarily due to:

• The net impact as a result of the machinery of government changes ($1801.1 million).



• revision of mining royalties as a result of movement in forecast production levels ($15.5 million).

Premier and Cabinet




• collections associated with online transactions for motor vehicle registration and licensingcollections via EzyReg which are reported by the Department of Planning, Transport andInfrastructure ($975.8 million)

• cessation of Land Services collections ($16.2 million)

• cessation of SAPOL expiation transactions processed through Service SA online services($43.4 million)

• Resources and Energy Group being in the department for a full financial year in 2017–18 and onlya part year for 2016–17 ($190.2 million).



The $31.4 million decrease in total assets is primarily due to:

• the net impact of programs transferring from the department as a result of the machinery ofgovernment changes ($31.1 million).



• transfer of opening balances associated with the programs transferred from the Department of StateDevelopment as a result of machinery of government changes ($29.6 million).





The movement in cash outflows and inflow is consistent with the changes discussed above under the statement of comprehensive income and the statement of financial position.







Premier and Cabinet


Additional information for administered items for the Department of the Premier and Cabinet Statement of cash flows

2018–19 Budget

2017–18 Estimated


2016–17 Actual

$000 $000 $000 $000 Operating activities

Cash outflows

Employee benefit payments Agent General .................................................................. 374 157 157 139 Parliamentary Salaries and electorate and expenses allowance ......................................................................... 399 391 395 393

Payments for supplies and services APY Lands – additional services...................................... — — — 224 Communities Essential Services ...................................... 300 — — — Other ................................................................................ — — — —

Grants and subsidies APY Lands — additional services .................................... 4 416 1 631 4 269 1 082 Aboriginal Communities — additional services ................ — — — 231 Recreation and Sport Fund .............................................. 20 20 20 — Other ................................................................................ — — — 69

Intra-government transfers APY Lands — additional services .................................... 2 397 5 016 2 351 5 004 Recreation and Sport Fund .............................................. — — — — Sport and Recreation Fund .............................................. 4 100 3 900 3 900 3 618 Promotion of the state ...................................................... 1 134 1 106 1 106 1 079 Productivity Commission of SA ........................................ 957 — — — Infrastructure SA .............................................................. 2 000 — — —

Other payments South Australian Stolen Generations Reparation Scheme ............................................................................ — 5 995 5 630 55 Promotion of the state ...................................................... 894 872 872 645 Other ................................................................................ 200 200 200 142


Cash inflows

Taxation Recreation and Sport Fund .............................................. 200 200 200 142

Intra-government transfers Sport and Recreation Fund .............................................. 4 100 3 900 3 900 3 700 Other ................................................................................ — — — —

Fees, fines and penalties Other ................................................................................ — — — —

Sales of goods and services Promotion of the State ..................................................... — — — — Recreation and Sport Fund .............................................. 20 20 20 — Other ................................................................................ — — — —

Premier and Cabinet


2018–19 Budget

2017–18 Estimated


2016–17 Actual

$000 $000 $000 $000 Interest received

APY Lands — additional services .................................. — — — 126 Aboriginal Communities — additional services ............... — — — 371 Other............................................................................. 4 4 4 2

Other receipts APY Lands — additional services .................................. — — — 255 Other............................................................................. — — — —


Reconciliation to operating payments

Operating payments (as per additional information for administered items) 17 191 19 288 18 900 12 681 Add: transferred out:

Court Administration Authority........................................ — 1 428 1 428 — Emergency Services Levy.............................................. — 43 403 43 403 — Hospital Fund ................................................................ — 75 666 75 666 — Motor Vehicle Registration and Driver Licences .............. — 503 518 503 518 345 035 Land Services Fees ....................................................... — 16 213 16 213 — SA Police — expiation notices ....................................... — 51 193 51 193 8 092 SA Police — firearms..................................................... — 3 555 3 555 2 653 State Taxation Office — stamp duties ............................ — 168 273 168 273 — Motor Accident Commission .......................................... — 670 780 670 780 276 Other............................................................................. — 38 018 38 018 3 149 Parliamentary Salaries and electorate and expenses allowance ...................................................................... — 111 — — Mining royalties ............................................................. — 236 583 251 008 36 822 Native Title Agreement — royalty ................................... — 3 835 3 650 69

Less: transferred in:

APY Lands – additional services .................................... — 6 647 6 620 6 310 Aboriginal Communities — additional services ............... — — — 231 Communities Essential Services .................................... — — — 69 South Australian Stolen Generations Reparation Scheme......................................................................... — 5 995 5 630 55 Recreation and Sport Fund ............................................ — 220 220 142 Sport and Recreation Fund ............................................ — 3 900 3 900 3 618

Equals: Operating payments (as per Administered items statement of cash flows) 17 191 1 815 102 1 829 235 398 352

Reconciliation to operating receipts

Operating receipts (as per additional information for administered items) 4 324 4 124 4 124 4 596 Add: transferred out:

Court Administration Authority........................................ — 1 428 1 428 — Emergency Services levy ............................................... — 43 403 43 403 — Hospital Fund — contribution ......................................... — 75 666 75 666 — Land Services Fees ....................................................... — 16 213 16 213 —

Premier and Cabinet


2018–19 Budget

2017–18 Estimated


2016–17 Actual

$000 $000 $000 $000 Motor Vehicle Registration and Driver Licences .............. — 655 627 655 627 345 035 SA Police — expiation notices ....................................... — 51 193 51 193 8 092 SA Police — firearms..................................................... — 3 555 3 555 2 653 State Taxation Office — stamp duties ............................ — 168 273 168 273 — Motor Accident Commission .......................................... — 518 461 518 461 — Other............................................................................. — 38 140 38 140 3 149 Mining royalties ............................................................. — 236 583 251 008 65 773 Native Title Agreement — royalty ................................... — 3 835 3 650 -10 898

Less: transferred in: APY Lands – additional services .................................... — — — 381 Aboriginal Communities – additional services ................. — — — 371 South Australian Stolen Generations Reparation Scheme......................................................................... — — — — Bank of Tokyo ............................................................... — — — 2 Recreation and Sport Fund ............................................ — 220 220 142 Sport and Recreation Fund ............................................ — 3 900 3 900 3 700

Equals: Operating receipts (as per Administered items statement of cash flows) 4 324 1 812 381 1 826 621 413 804

Premier and Cabinet


Premier and Cabinet


Agency: Department of Primary Industries and Regions

Minister for Primary Industries and Regional Development


Primary Industries and Regions


Contents

Objective .......................................................................................................................................... 92 Ministerial responsibilities ................................................................................................................ 92 Ministerial office resources .............................................................................................................. 93 Workforce summary ........................................................................................................................ 94 Program net cost of services summary ........................................................................................... 94 Key agency outputs ......................................................................................................................... 94 Investing expenditure summary ...................................................................................................... 95 Program 1: Primary Industries ..................................................................................................... 96 Program 2: Regional Development ............................................................................................ 104 Financial statements ..................................................................................................................... 106 Summary of major variations......................................................................................................... 114 Additional information for administered items ............................................................................... 119



Objective

The purpose of the Department of Primary Industries and Regions is to grow primary industries and drive regional development in South Australia.

Our priorities are to:

• increase productivity of our primary industries and agribusinesses

• secure production through biosecurity, food safety standards and efficient and sustainable use of resources

• enable market access by working with primary industries to respond to evolving requirements of domestic and global markets and consumers

• grow regions by driving new economic opportunities and building and strengthening communities

• manage adverse events effectively and help primary industries and communities improve preparedness, resilience and recover well

• reform our legislative framework and programs to drive efficiency, effectiveness and unlock potential

• build partnerships with industry, stakeholders, research organisations and regional communities

• provide world-leading applied research and development services to improve productivity, develop new products, and protect our industries

• perform well as a modern, flexible and responsive organisation, with all activities underpinned by good governance and strong financial management.

We have responsibility for administering and enforcing legislation that:

• establishes biosecurity systems that manage the significant risks posed to our industry, community and natural resources by animal and plant pests and diseases, food borne illness and misuse of chemicals

• manages our aquatic resources sustainability while growing our fishing and aquaculture industries

• provides for industry development funds that enable industry to financially contribute to the management and growth of their sectors.

Importantly we are an integral part of the national biosecurity systems in place to manage and respond to animal, plant and aquatic disease threats to Australia by participating in national policy development, surveillance and emergency response activities.



The Hon. TJ Whetstone Minister for Primary Industries and Regional Development

1. Primary Industries 1.1 Agricultural Services 1.2 Fisheries and Aquaculture 1.3 South Australian Research and

Development Institute (SARDI) 1.4 Biosecurity 1.5 South Australian River Murray

Sustainability 1.6 Forestry Policy

2. Regional Development Nil



Administered items

In addition to the above responsibilities, the agency administers the following items on behalf of the minister:

• Adelaide Hills Wine Industry Fund

• Apiary Industry Fund

• Aquaculture Lease Rehabilitation Fund

• Aquaculture Resource Management Fund

• Barossa Wine Industry Fund

• Cattle Industry Fund

• Citrus Growers Fund

• Clare Valley Wine Industry Fund

• Dog Fence Board

• Eyre Peninsula Grain Growers Rail Fund

• Fisheries Research and Development Fund

• ForestrySA ― community service obligation

• Grain Industry Fund

• Grain Industry Research and Development Fund

• Langhorne Creek Wine Industry Fund

• McLaren Vale Wine Industry Fund

• Pig Industry Fund

• Riverland Wine Industry Fund

• SA Grape Growers Industry Fund

• Samcor Fund

• Seed Levies Fund

• Sheep Industry Fund.

Statutes



2018–19 Budget

Cost of provision

Minister $000 FTE

The Hon. TJ Whetstone ...................................................................... 2 215 13.0



Workforce summary

FTEs as at 30 June

Agency 2018–19

Budget(a)

2017–18 Estimated


Department of Primary Industries and Regions ................................. 884.6 906.5 924.3 Administered items for the Department of Primary Industries and Regions(c) .................................................................................. 1.0 1.0 2.0 Total 885.6 907.5 926.3 Reconciliation to agency FTEs


Government related trade, investment and export functions to Department for Trade, Tourism and Investment ............................... — 3.4 3.0

Equals: data published by the Office for the Public Sector (Department of the Premier and Cabinet) 885.6 910.9 929.3



(c) Administered items FTEs are not included in the agency program information.


Net cost of services

2018–19 Budget

2017–18 Estimated


2016–17 Actual

Program $000 $000 $000 $000

1. Primary Industries ............................................. 79 121 100 089 78 527 70 952

2. Regional Development ...................................... 38 083 29 359 31 212 32 356

Total 117 204 129 448 109 739 103 308

Reconciliation to agency net cost of providing services


Government related trade, investment and export functions to Department for Trade, Tourism and Investment ................................................................ — 432 432 392


Key agency outputs

• Support, advice and funding programs to industry to enable expansion and innovation in agricultural production.

• Regulation of the state’s agricultural, aquatic and forestry industries.

• Regulatory and compliance services to enable the sustainable management of the state’s commercial and recreational fisheries.

• Agricultural and aquatic research, development and extension services.



• Plant and animal health surveillance programs to assure and protect the state’s industries andexports.

• Response and recovery services for adverse events that impact on livestock and primaryproduction.

• Eradication of pest incursions.

• Funding to regional communities and sectors to support the strategic economic development of thestate’s regional communities and industries.



Estimated completion

Total project


2017–18 Estimated



Existing projects Clare Regional Office ........................... Jun 2018 3 707 — 907 — Loxton Research Centre Redevelopment.................................... Jun 2019 5 281 325 92 — Total existing projects 8 988 325 999 —

Annual programs Minor Capital Works and Equipment ..... n.a. n.a. 5 033 5 580 5 045

Total annual programs n.a. 5 033 5 580 5 045




Program 1: Primary Industries


To drive the growth and sustainable development of the state’s primary industries.

Sub-programs

1.1 Agricultural Services

1.2 Fisheries and Aquaculture

1.3 South Australian Research and Development Institute (SARDI)

1.4 Biosecurity

1.5 South Australian River Murray Sustainability

1.6 Forestry Policy


2018–19 Budget

2017–18 Estimated


2016–17 Actual

$000 $000 $000 $000

Expenses Employee benefit expenses ....................................... 89 971 90 123 91 319 86 912 Supplies and services ................................................ 45 666 47 628 46 872 47 858 Depreciation and amortisation expenses .................... 6 696 6 609 6 609 6 060 Borrowing costs ......................................................... 855 557 845 355 Grants and subsidies ................................................. 42 659 59 639 55 261 55 497 Intra-government transfers ......................................... 8 314 1 251 7 064 6 726 Other expenses ......................................................... 1 231 1 569 1 500 1 579

Total expenses 195 392 207 376 209 470 204 987

Income Commonwealth Government revenues ....................... 34 288 28 707 49 922 61 326 Intra-government transfers ......................................... 18 071 18 528 17 871 19 642 Other grants............................................................... 34 194 35 504 33 404 29 747 Fees, fines and penalties ........................................... 2 103 2 327 2 309 2 333 Sales of goods and services ....................................... 21 878 16 238 21 584 15 373 Interest revenue ......................................................... 2 061 1 740 2 161 1 799 Net gain or loss from disposal of assets ...................... — 105 80 -206 Resources received free of charge ............................. — — — 2 Other income ............................................................. 3 676 4 138 3 612 4 019

Total income 116 271 107 287 130 943 134 035


FTEs as at June (No.) 849.5 865.9 859.9 882.2



Sub-program 1.1: Agricultural Services


Lead PIRSA’s strategic policy and planning and the delivery of agribusiness programs. Ensure policy, planning and regulatory frameworks underpin long-term productivity, profitability and competitiveness of SA primary industries. Develop and deliver programs and initiatives aimed at growing the economic contribution of primary industries and agribusinesses.


• Introduced the Farm Debt Mediation Bill into Parliament.

• Delivered the South Australian Wine Industry Development Scheme to build industry capability.

• Concluded the Improving Road Transport for the Agricultural Industry project which has delivered estimated benefits of at least $80 million for primary producers and road transport operators.

• Expanded Australian Wool Innovation’s successful sheep extension program SheepConnect to support South Australia’s pastoral wool producers to have healthy and productive farming businesses, livestock and properties.

• Delivered economic analysis and reporting including PIRSA food and wine industry scorecards, Crop and Pasture Reports and Market and Industry Insights Reports.

• Secured $45.6 million from the Commonwealth Government to support the construction of the $155.6 million Northern Adelaide Irrigation Scheme, complementing $110 million committed to the Scheme by the State Government.

Targets 2018–19

• Commission a high-level independent expert review of the moratorium on the cultivation of Genetically Modified food crops.

• Provide Food South Australia increased funding to $1 million per annum to deliver core program activities to grow markets, capability and connections, continue the SA Food Industry Awards Program and create a Liaison Officer position.

• Proclaim and commit the Farm Debt Mediation Bill for implementation by the SA Small Business Commissioner.

• Complete a business case for the Riverland Food and Wine Centre.

• Deliver the 2018 International Annual General Meeting and associated activities as part of South Australia’s Great Wine Capitals Global Network membership.

• Enable increased production on the Northern Adelaide Plains, by working with local businesses, industry and governments.

2018–19 Budget

2017–18 Estimated


2016–17 Actual

$000 $000 $000 $000 Expenses................................................................... 25 836 23 475 28 529 28 191 Income ...................................................................... 13 307 9 156 13 473 10 392


FTEs as at June (No.) 116.3 133.5 139.8 139.9




The major movements in expenses and income across the years is primarily due to fluctuations associated with externally funded projects undertaken each period by Rural Solutions SA ($4.7 million).

The 2017–18 estimated result for expenses includes once-off additional grant expenditure under the Wine Industry Development Scheme ($1.0 million) and completion of the Riverland Storm Recovery ($0.4 million).

The 2018–19 budgeted expenses includes additional initiative funding for the support to Food SA ($0.5 million) as outlined in the 2018–19 Budget Measures Statement.

The 2018–19 budgeted expenses includes efficiency and operational savings ($1.3 million) as outlined in the 2018–19 Budget Measures Statement.

Sub-program 1.2: Fisheries and Aquaculture


Ensure the sustainable development of South Australia’s aquaculture industry, with a statutory and regulatory responsibility for the planning and management of aquaculture in South Australia.

Manage the living marine and freshwater resources of South Australia, including the development and implementation of appropriate management plans for commercial fishing, recreational fishing and Aboriginal traditional fishing, development of government policy for sustainable resource access and allocation, and the administration of licensing and compliance services.


• Implemented strengthened biosecurity strategies for oyster and abalone aquaculture sectors.

• Implemented a fish kill training course to enhance regional biosecurity capabilities for fisheries and aquaculture.

• Implemented a reporting system for aquaculture activities to support improved transparency.

• Developed an Aboriginal Fisheries Officer Career Pathway Program, to better engage with Aboriginal nations on traditional fisheries.

• Commenced the Management Plan review for the Charter Boat fishery.

• Supported the implementation of e-business systems to selected commercial fisheries.

Targets 2018–19

• Modernise legislation governing aquaculture production to support the growth of the industry.

• Investigate and progress key reforms in South Australia’s Marine Scalefish Fishery.

• Commission an independent review of PIRSA’s cost recovery policy as it applies to the fishing and aquaculture sectors.

• Establish a new advisory body for recreational fishers.

• Support the recovery of the South Australian oyster industry following the outbreak of Pacific Oyster Mortality Syndrome in Tasmania.

• Establish a new fisheries council multi-sectoral consultative body.



2018–19 Budget

2017–18 Estimated


2016–17 Actual

$000 $000 $000 $000 Expenses................................................................... 19 603 20 399 19 189 18 690 Income ...................................................................... 10 067 10 330 10 278 10 223


FTEs as at June (No.) 116.2 117.2 113.5 112.7


The decrease in 2018–19 budgeted income compared to previous years is primarily due to the fee relief for oyster lease and licence holders under the Aquaculture Act 2001 as part of the Oyster Sector Assistance Package.

The increase in 2017–18 estimated result expenses compared to other years is primarily due to once-off expenditure associated with the environmental clean-up of abandoned abalone aquaculture operations in Anxious Bay.

The movement in revenue and associated expenses across the years also reflects the negotiated annual service delivery outcomes with the commercial fishing industry under the Fisheries Management Act 2007.

Sub-program 1.3: South Australian Research and Development Institute


Undertake applied primary industries, food and wine research and development, including practice change, on behalf of the South Australian government. Provide services to government, primary industry stakeholders and a range of other clients to support the state’s policy objectives.


• Developed a five-year strategic plan for SARDI.

• Completed the Great Australian Bight Research Program and delivered key results and outcomes to stakeholders.

• Identified resilient plants to entice egg-laying chickens outdoors on free range farms.

• Expanded Predicta Diagnostic Services.

• Determined opportunities for expansion of irrigated horticulture on Northern Adelaide Plains.

• Commenced planting of research orchard at the Almond Centre of Excellence at Loxton.

Targets 2018–19

• Produce Pacific oyster spat for the South Australian Oyster Growers Association to address South Australia’s spat shortage.

• Assess the socio-economic status of the ecosystems, industries and communities of Spencer Gulf.

• Develop and validate a novel plant biosecurity surveillance system.

• Develop new strategies to improve the success rate of artificial insemination in sheep.

• Implement a renewed research investment framework and structured commercialisation arrangements for SARDI.



2018–19 Budget

2017–18 Estimated


2016–17 Actual

$000 $000 $000 $000 Expenses................................................................... 73 695 76 115 74 875 73 676 Income ...................................................................... 50 634 51 512 49 668 47 932


FTEs as at June (No.) 401.6 401.9 398.0 413.3


The major movements in expenses and income across the years is primarily due to changes in externally funded projects undertaken each period.

The 2018–19 budget for income includes a revenue measure for improved cost recovery of support services associated with research activity ($0.7 million) as outlined in the 2018–19 Budget Measures Statement.

The reduction in the 2018–19 budget for expenses also reflects efficiency measures associated with departmental overheads.

Sub-program 1.4: Biosecurity


Develop and implement policies, legislation, regulatory frameworks, surveillance, preparedness and response programs that protect the economy, environment, communities and human health from the negative impacts associated with the entry, establishment or spread of pests, diseases and contaminants in the areas of animal health, aquatic animal health, aquatic pests, vertebrate pests, weeds, plant health, and food borne pathogens.

The programs delivered underpin market access, and maintain pest and disease freedom and controls, contributing to the productivity and protection of South Australia’s primary industries.


• Defined Pest Free Areas for the Mount Lofty Ranges and Northern Adelaide Plains, and installed nationally compliant fruit fly trapping grids.

• Implemented the legislative framework for industrial hemp production and processing in South Australia.

• Completed the National Eradication Response Plan and proof of freedom phase for the eradication of Khapra Beetle from Australia.

• Implemented the Australian Honey Bee Industry Biosecurity Code of Practice in South Australia in collaboration with industry.

• Established industry based Area Wide Management Groups for the key horticultural production areas of Mount Lofty Ranges, Riverland and Northern Adelaide Plains, with formal work plans developed.



Targets 2018–19

• Strengthen control of wild dogs through a trapper service, enhanced baiting and dog fence improvements.

• Increase the capacity to maintain fruit fly freedom by enhanced Riverland coordination, awareness activities, and new fruit disposal facilities at Riverland border entry points.

• Review regulatory arrangements for artisan on-farm meat processing on Kangaroo Island.

• Encourage livestock producers to use the One Biosecurity online system to build an industry-driven scheme for market assurance.

• Ensure effective preparedness and response to emergency biosecurity incidents including other hazards that significantly impact on livestock and primary production.

• Initiate a review of state legislation to develop a consolidated South Australian Biosecurity Act.

2018–19 Budget

2017–18 Estimated


2016–17 Actual

$000 $000 $000 $000 Expenses................................................................... 33 103 34 585 32 607 33 542 Income ...................................................................... 10 608 11 062 10 640 12 560


FTEs as at June (No.) 193.8 189.9 186.0 193.3


The 2018–19 Budget includes fee relief for oyster lease and licence holders under the Primary Produce (Food Safety Schemes) (Seafood) Regulations 2017 as part of the Oyster Sector Assistance Package.

The 2017–18 Estimated Result includes once-off expenditure for emergency eradication response activities following outbreaks of fruit fly, Pacific Oyster Mortality Syndrome in the Port River and Glabrous beetle detection on Kangaroo Island.

The movement in income and expenses across all years is primarily due to changes in Commonwealth Government funding for pest animal and weed management projects, as well as Commonwealth and other state government funding associated with Khapra beetle and Giant Pine Scale eradication responses.

Sub-program 1.5: South Australian River Murray Sustainability


The $265 million South Australian River Murray Sustainability Program (SARMS) is funded by the Commonwealth Government to support the sustainability of South Australian River Murray communities through investment in irrigation efficiencies, water returns, irrigation industry assistance and regional economic development. The program will return 40 gigalitres of water to the River Murray system and will contribute towards South Australia’s implementation of the Murray-Darling Basin Plan.

SARMS will assist South Australian Murray-Darling Basin industries and communities to prepare for the challenges presented by future climate change and changed River Murray operations as a result of implementation of the Murray-Darling Basin Plan.




• Supported grantees to deliver projects under the three SARMS grant sub-programs (Irrigation Industry Improvement Program, Regional Development and Innovation Fund and Industry-led Research sub-program).

• Supported regional development through existing SARMS projects and the creation of new initiatives.

• Continued to monitor, evaluate and report program outcomes outlined under the SARMS National Partnership Agreement.

• Delivered the SARMS Impact Assessment.

Targets 2018–19

• Deliver the remaining water return target under the SARMS National Partnership Agreement.

• Monitor, evaluate and report final program outcomes outlined under the SARMS National Partnership Agreement.

2018–19 Budget

2017–18 Estimated


2016–17 Actual

$000 $000 $000 $000 Expenses................................................................... 34 629 51 597 46 884 46 885 Income ...................................................................... 31 655 25 227 46 884 52 832

Net cost of sub-program 2 974 26 370 — -5 947

FTEs as at June (No.) 17.0 17.0 17.0 16.8


The decrease in 2018–19 budgeted expenses compared to the 2017–18 estimated result is mainly due to profiling of grant expenditure for irrigation improvement activities in line with grant agreements.

The movement in income across all years is primarily due to timing of Commonwealth Government funding for irrigation industry improvement activities.

Sub-program 1.6: Forestry Policy


Lead the development of improved productivity, growth and employment opportunities in South Australia’s forest industry, while growing regional development, building partnerships and protecting the government’s interests in forestry.


• Established a research hub of the National Institute of Forest Products Innovation in Mount Gambier to support research for the State’s forest and forest products industry.

• Finalised outcomes for the Mid North Forests that provided value for government and opportunities for employment, and enhanced environmental, cultural, heritage and community values.

• Monitored compliance with contractual requirements of the forward sale of the government’s Green Triangle plantation harvesting rights.



Targets 2018–19

• Establish the Forest Industry Advisory Council of South Australia to provide advice to the Minister for Primary Industries and Regional Development to develop the forest and forest products sector.

• Monitor compliance with contractual requirements of the forward sale of the government’s Green Triangle plantation harvesting rights.

• Complete the South East Forestry Partnerships Program projects to improve the productivity and sustainability of industry in the South East.

2018–19 Budget

2017–18 Estimated


2016–17 Actual

$000 $000 $000 $000 Expenses................................................................... 8 526 1 205 7 386 4 003 Income ...................................................................... — — — 96

Net cost of sub-program 8 526 1 205 7 386 3 907 FTEs as at 30 June (No.) 4.6 6.4 5.6 6.2


The movement in expenses is primarily due to the re-profiling of expenditure associated with the South East Forestry Partnership Program across all years.



Program 2: Regional Development


Work with South Australia’s regional communities, sectors and the three levels of government to identify, promote and support strategic economic development initiatives throughout regional South Australia.

Support regional South Australia to create new jobs and unlock new economic activity. Leverage economic activity that will grow regions’ economic prosperity, security and opportunity through grant programs and other initiatives.


• Co-invested in regional infrastructure to strengthen industries, develop economies, and grow capabilities as a foundation for jobs and economic growth through the Regional Development Fund.

• Continued the North West Indigenous Pastoral Project to upgrade on-farm infrastructure and build a skilled workforce, providing employment opportunities for indigenous people and returned 2 700 square kilometres of Aboriginal owned land into production.

• Provided $1 million from the Regional Development Fund towards South Australia’s $2 million co-contribution under the Federal Government’s Mobile Black Spot Programme.

Targets 2018–19

• Support projects and initiatives through the new Regional Growth Fund to unlock new economic activity in our regions.

• Plan and begin investing the $10 million Mobile Phone Black Spot Fund to improve digital connectivity in regional South Australia.

• Support the Regional Development Australia network through $3 million annually to deliver region-specific economic outcomes.

• Provide support to Brand South Australia for the Regional Showcase highlighting successful and innovative regional businesses.

• Continue to increase the area of pastoral land in production, increase livestock productivity and expand Aboriginal employment outcomes within the North West Indigenous Pastoral Project.


2018–19 Budget

2017–18 Estimated


2016–17 Actual

$000 $000 $000 $000

Expenses Employee benefit expenses ....................................... 4 085 4 987 5 585 4 507 Supplies and services ................................................ 1 065 1 979 1 888 1 732 Grants and subsidies ................................................. 30 528 20 797 21 278 22 073 Intra-government transfers ......................................... 2 530 2 441 3 081 5 071 Other expenses ......................................................... — 5 5 1

Total expenses 38 208 30 209 31 837 33 384



2018–19 Budget

2017–18 Estimated


2016–17 Actual

$000 $000 $000 $000

Income Commonwealth Government revenues ....................... — 350 — — Intra-government transfers ......................................... 125 500 625 1 026 Other income ............................................................. — — — 2 Total income 125 850 625 1 028


FTEs as at 30 June (No.) 35.1 40.6 48.5 42.1


The 2018–19 budget for expenses includes new initiative funding for the Mobile Phone Black Spot Fund to improve mobile coverage across the state ($2.0 million), re-profiling of grants mainly associated with the former Regional Development Fund ($9.4 million) partly offset by operating savings ($2.0 million) as outlined in the 2018–19 Budget Measures Statement.

The movement in income across the years is primarily due to contributions from other government departments towards regional projects including the Thevenard Marine Offloading Facility, with a once-off contribution from the Commonwealth Government towards the Monarto Zoo Predator Experience in the 2017–18 Estimated Result.



Primary Industries and RegionsStatement of comprehensive income

2018–19Budget

2017–18Estimated

Result

2017–18Budget

2016–17

Actual$000 $000 $000 $000


Salaries, wages, annual and sick leave............................. 75 859 77 223 78 744 77 118Long service leave............................................................. 3 755 3 755 3 795 1 706Payroll tax.......................................................................... 4 085 4 102 4 179 4 323Superannuation.................................................................. 8 864 8 956 9 112 7 828Other.................................................................................. 1 493 1 464 1 464 799

Supplies and servicesGeneral supplies and services........................................... 46 552 49 474 48 208 49 532Consultancy expenses....................................................... 179 175 594 95

Depreciation and amortisation.............................................. 6 696 6 609 6 609 6 060Borrowing costs.................................................................... 855 557 845 355Grants and subsidies............................................................ 73 187 80 436 76 539 77 570Intra government transfers.................................................... 10 844 3 692 10 145 11 797Other expenses..................................................................... 1 231 1 574 1 505 1 580

Total expenses 233 600 238 017 241 739 238 763

IncomeCommonwealth revenues..................................................... 34 288 29 057 49 922 61 326Intra-government transfers.................................................... 18 196 19 028 18 496 20 668Other grants.......................................................................... 34 194 35 504 33 404 29 747Fees, fines and penalties...................................................... 2 103 2 327 2 309 2 333Sales of goods and services................................................. 21 878 16 238 21 584 15 373Interest revenues.................................................................. 2 061 1 740 2 161 1 799Net gain or loss on disposal of assets.................................. — 105 80 -206Resources received free of charge....................................... — — — 2Other income........................................................................ 3 676 4 138 3 612 4 021

Total income 116 396 108 137 131 568 135 063



IncomeAppropriation...................................................................... 99 730 106 790 107 461 126 885Other income...................................................................... — 250 — —

ExpensesCash alignment.................................................................. — 20 141 — —Payments to Consolidated Account................................... 293 — — 5 427


Total comprehensive result -17 767 -42 981 -2 710 17 351



Primary Industries and RegionsStatement of financial position

2018–19Budget

2017–18Estimated


2016–17Actual

$000 $000 $000 $000AssetsCurrent assetsCash and cash equivalents................................................... 99 794 116 981 107 405 165 634Receivables.......................................................................... 45 239 42 739 38 700 30 029Inventories............................................................................ 146 146 106 146Other current assets............................................................. 58 58 586 58Non-current assets held for sale........................................... — — 44 —


Non current assets

Financial assets.................................................................... 4 518 4 518 4 518 4 518Land and improvements....................................................... 92 847 96 072 96 879 98 423Plant and equipment............................................................. 19 165 17 190 18 986 14 535Intangible assets................................................................... 6 152 6 533 5 181 7 081Biological assets — other..................................................... 2 176 2 176 1 897 2 176Other non-current assets...................................................... 15 15 18 15


Total assets 270 110 286 428 274 320 322 615

LiabilitiesCurrent liabilitiesPayables............................................................................... 17 167 17 017 14 860 16 849Short-term borrowings.......................................................... 16 434 16 434 21 732 11 224Employee benefits


Short-term provisions............................................................ 441 433 518 425Other current liabilities.......................................................... 15 551 15 551 16 743 15 554


Non current liabilitiesLong-term borrowings........................................................... 14 488 14 488 3 555 14 488Long-term employee benefits

Long service leave............................................................ 25 863 25 057 25 936 24 230Long-term provisions............................................................ 871 784 1 160 722Other non-current liabilities................................................... 753 883 885 1 013



Net assets 167 233 185 000 178 394 227 981



Primary Industries and RegionsStatement of financial position

2018–19Budget

2017–18Estimated

Result

2017–18Budget

2016–17

Actual$000 $000 $000 $000

Equity

Retained earnings................................................................. 130 592 148 359 139 845 191 340Asset revaluation reserve..................................................... 36 641 36 641 38 549 36 641

Total equity 167 233 185 000 178 394 227 981




Primary Industries and RegionsStatement of cash flows

2018–19Budget

2017–18Estimated

Result

2017–18Budget

2016–17

Actual$000 $000 $000 $000


Cash outflowsEmployee benefit payments................................................... 92 534 93 837 95 631 90 984Payments for supplies and services...................................... 46 861 49 782 48 935 47 798Interest paid........................................................................... 855 557 845 314Grants and subsidies............................................................. 73 187 80 436 76 539 75 726GST paid................................................................................ — — — 15 413Intra-government transfers..................................................... 10 844 3 692 10 145 11 727Other payments..................................................................... 1 174 1 520 1 451 1 316


Cash inflowsIntra-government transfers..................................................... 18 196 19 028 18 496 20 667Commonwealth receipts........................................................ 34 288 29 057 49 922 61 326Other grants........................................................................... 34 194 35 504 33 404 27 260Fees, fines and penalties....................................................... 2 103 2 327 2 309 2 598Sales of goods and services.................................................. 21 878 16 238 21 584 13 169Interest received.................................................................... 2 061 1 740 2 161 1 446GST received......................................................................... — — — 15 262Other receipts........................................................................ 3 676 4 138 3 612 4 582


State government

Appropriation.......................................................................... 99 730 106 790 107 461 126 885Other receipts........................................................................ — 250 — —Payments

Cash alignment................................................................... — 20 141 — —Other................................................................................... 293 — — 5 427


Net cash provided by (+)/used in (-) operating activities -9 622 -34 893 5 403 24 490



Primary Industries and RegionsStatement of cash flows

2018–19Budget

2017–18Estimated

Result

2017–18Budget

2016–17

Actual$000 $000 $000 $000


Cash outflowsPurchase of property, plant and equipment........................... 5 343 6 564 5 030 10 703Purchase of intangibles.......................................................... 15 15 15 2 216Advances paid....................................................................... 3 500 13 710 6 000 11 381Other investing payments...................................................... — — — 559


Cash inflowsProceeds from sale of property, plant and equipment........... 293 319 373 5 563Repayment of advances........................................................ 1 000 1 000 1 000 3 576Other receipts........................................................................ — — — 1 593

Cash generated from investing activities 1 293 1 319 1 373 10 732



Cash outflowsRepayment of borrowings...................................................... 1 000 5 790 1 000 16 207

Cash used in financing activities 1 000 5 790 1 000 16 207

Cash inflowsProceeds of borrowings......................................................... 1 000 11 000 1 000 15 624

Cash generated from financing activities 1 000 11 000 1 000 15 624

Net cash provided by (+)/used in (-) financing activities — 5 210 — -583

Net increase (+)/decrease (-) in cash equivalents -17 187 -48 653 -4 269 9 780




Assets received (+)/donated (-) free of charge...................... — — — 2



Administered items for the Department of Primary Industries and RegionsStatement of comprehensive income

2018–19Budget

2017–18Estimated

Result

2017–18Budget

2016–17

Actual$000 $000 $000 $000


Salaries, wages, annual and sick leave............................. 377 614 719 699Payroll tax.......................................................................... — — — 1Superannuation.................................................................. — — — 1Other.................................................................................. 101 99 114 27

Supplies and servicesGeneral supplies and services........................................... 2 270 2 207 1 474 2 084

Grants and subsidies............................................................ 16 161 16 834 14 172 13 104Intra government transfers.................................................... 18 597 19 057 18 616 17 850Other expenses..................................................................... 108 108 91 143

Total expenses 37 614 38 919 35 186 33 909

IncomeIntra-government transfers.................................................... 2 2 2 —Fees, fines and penalties...................................................... 15 682 15 942 15 414 15 083Sales of goods and services................................................. 894 883 783 525Interest revenues.................................................................. 332 309 309 225Other income........................................................................ 14 103 13 092 12 793 14 762

Total income 31 013 30 228 29 301 30 595


IncomeAppropriation...................................................................... 4 898 5 402 5 507 4 688


Total comprehensive result -1 703 -3 289 -378 1 374



Administered items for the Department of Primary Industries and RegionsStatement of financial position

2018–19Budget

2017–18Estimated

Result

2017–18Budget

2016–17

Actual$000 $000 $000 $000

AssetsCurrent assetsCash and cash equivalents................................................... 17 594 19 297 19 562 22 586Receivables.......................................................................... 679 679 173 679


Total assets 18 273 19 976 19 735 23 265


Salaries and wages........................................................... — — 2 —Other current liabilities.......................................................... 3 444 3 444 2 608 3 444



Net assets 13 629 15 332 15 520 18 621

Equity

Retained earnings................................................................. 13 629 15 332 15 520 18 621

Total equity 13 629 15 332 15 520 18 621




Administered items for the Department of Primary Industries and RegionsStatement of cash flows

2018–19Budget

2017–18Estimated

Result

2017–18Budget

2016–17

Actual$000 $000 $000 $000

Operating activitiesCash outflowsEmployee benefit payments................................................... 478 713 833 730Payments for supplies and services...................................... 2 270 2 207 1 474 2 076Grants and subsidies............................................................. 16 161 16 834 14 172 13 517Intra-government transfers..................................................... 18 597 19 057 18 616 17 850Other payments..................................................................... 108 108 91 155


Cash inflowsIntra-government transfers..................................................... 2 2 2 —Fees, fines and penalties....................................................... 15 682 15 942 15 414 15 416Sales of goods and services.................................................. 894 883 783 525Interest received.................................................................... 332 309 309 223Other receipts........................................................................ 14 103 13 092 12 793 14 747


State government

Appropriation.......................................................................... 4 898 5 402 5 507 4 688


Net cash provided by (+)/used in (-) operating activities -1 703 -3 289 -378 1 271

Net increase (+)/decrease (-) in cash equivalents -1 703 -3 289 -378 1 271







Expenses


The $4.4 million decrease is primarily due to:

• reduced expenditure under the South Australian River Murray Sustainability Program in 2018–19 ($17.0 million)

• operating savings measures from previous budgets, mid-year budget review and across the department in 2018–19 ($10.4 million)

• reduced expenditure relating to Ministerial office budgets in 2018–19 ($1.4 million) • reduced expenditure relating to once-off grant expenditure for the Wine Industry Development

Scheme in 2017–18 ($1.0 million) partially offset by

• increased expenditure associated with various grants budgeted under the Regional Development program in 2018–19 ($9.4 million)

• increased expenditure relating to the South East Forestry Partnership Program in 2018–19 ($7.5 million)

• annual indexation and enterprise bargaining agreement adjustments in 2018–19 ($3.4 million) • reinstatement of expenditure base in 2018–19 following lower than expected externally funded

projects undertaken in 2017–18 ($2.7 million) • new initiative funding for the Mobile Black Spot Fund ($2.0 million) and additional support for

Food SA ($0.5 million) in 2018–19.



• reduced expenditure relating to the re-profiling of expenditure for the South East Forestry Partnership Program from 2017–18 into 2018–19 ($6.3 million)

• lower externally funded projects undertaken in 2017–18 ($3.2 million) partially offset by

• increased expenditure under the South Australian River Murray Sustainability Program in 2017–18 ($4.7 million)

• increased grant expenditure under the Wine Industry Development Scheme in 2017–18 ($1.0 million).



• reduced expenditure relating to the South East Forestry Partnership Program ($2.9 million)

• reduced expenditure associated with grants budgeted under the Regional Development Fund in 2017–18 ($2.7 million)



partially offset by

• increased expenditure under the South Australian River Murray Sustainability Program($4.7 million)

• increase in externally funded projects undertaken in 2017–18 ($0.4 million).

Income



• higher Commonwealth Government funding for the South Australian River Murray SustainabilityProgram in 2018–19 ($6.4 million)

• reinstatement of revenue base in 2018–19 following lower than expected externally funded projectsundertaken in 2017–18 ($2.7 million)

• higher revenue to reflect increased cost recovery together with improved leverage from externallyfunded grants within SARDI in 2018–19 ($0.7 million)

partially offset by

• fee relief under the Oyster Sector Assistance Package in 2018–19 ($0.8 million)

• lower contributions from the Commonwealth Government and other state government agencies inrelation to the Regional Development program in 2018–19 ($0.7 million).



• lower Commonwealth Government funding for the South Australian River Murray SustainabilityProgram in 2017–18, reflecting a re-profile of funding to later years ($21.7 million)

• lower than expected externally funded projects undertaken in 2017–18 ($3.2 million).



• lower Commonwealth Government funding for the South Australian River Murray SustainabilityProgram in 2017–18 ($27.6 million)

partially offset by

• increase in externally funded projects undertaken in 2017–18 ($0.4 million).



The $16.3 million decrease in total assets is primarily due to:

• movement in cash holdings in relation to the re-profiling of activities under various grant programsincluding the South East Forestry Partnership Program ($7.5 million), Regional Development($4.1 million) and the South Australian River Murray Sustainability Program ($3 million), andadvances budgeted under the Farm Business Concessional Loan schemes in 2018–19 ($2.5 million)

• continuing depreciation and amortisation charges on the department’s asset base ($6.7 million)



partially offset by

• budgeted capital investment and minor works 2018–19 ($5.4 million)

• increased receivables from budgeted advances under the Farm Business Concessional Loan schemes in 2018–19 ($2.5 million).

The $1.4 million increase in total liabilities is primarily due to the movement in provisions for employee benefits ($1.3 million).


The $12.1 million increase in total assets is primarily due to movement in cash holdings in relation to the re-profiling of activities under various grant programs and advances under Commonwealth Concessional Loan schemes.

The $5.5 million increase in total liabilities is primarily due to:

• increased borrowings for the Farm Business Concessional Loan schemes ($10 million)

partially offset by

• refunds to the Commonwealth under the Farm Business Concessional Loan schemes in 2017–18 ($4.8 million).


The $36.2 million decrease in total assets is primarily due to movement in cash holdings in relation to the re-profiling of activities under various grant programs and advances under Commonwealth Concessional Loan schemes.

The $6.8 million increase in total liabilities is primarily due to:

• reduced repayments for advances under the various Commonwealth Concessional Loan schemes ($10.4 million)

partially offset by

• reduced borrowings following advances under the various Commonwealth Concessional Loan schemes ($5.6 million)

• a movement in provisions for employee benefits ($1.5 million).



The $25.3 million increase in net operating cash flows is primarily due to:

• increased movements in the net cost of providing services (excluding depreciation) are generally consistent with the changes discussed above under the statement of comprehensive income ($12.7 million)

• an increase in 2018–19 appropriation and other receipts ($12.5 million).

The $11.4 million increase in net investing cash flows is primarily due to:

• decreased capital expenditure in 2018–19 ($1.2 million)

• decreased advances in 2018–19 made under the Farm Business Concessional Loan schemes ($10.2 million).



The $5.2 million decrease in net financing cash flows is primarily due to:

• refunds to Commonwealth under the Farm Business Concessional Loan schemes in ($4.8 million)

partially offset by

• reduced proceeds of borrowings following advances under the Farm Business Concessional Loan schemes in 2017–18 ($10 million).


The $40.3 million decrease in net operating cash flows is primarily due to:

• movements in the net cost of providing services (excluding depreciation) are generally consistent with the changes discussed above under the statement of comprehensive income ($19.7 million)

• a decrease in 2017–18 appropriation and other receipts ($20.6 million).

The $9.3 million decrease in net investing cash flows is primarily due to:

• increased capital expenditure in 2017–18 ($1.5 million)

• increased advances in 2017–18 due mainly to the Farm Business Concessional Loan schemes ($7.7 million).

The $5.2 million increase in net financing cash flows is primarily due to:

• refunds to Commonwealth under the Farm Business Concessional Loan schemes ($4.8 million)

partially offset by

• reduced proceeds of borrowings following advances under the Farm Business Concessional Loan schemes in 2017–18 ($10 million).


The $59.4 million decrease in net operating cash flows is primarily due to:

• movements in the net cost of providing services (excluding depreciation) are generally consistent with the changes discussed above under the statement of comprehensive income ($24.8 million)

• a decrease in 2017–18 appropriation and other receipts ($34.6 million).

The $4.8 million decrease in net investing cash flows is primarily due to:

• decreased proceeds from sale of property, plant and equipment in 2017–18 ($5.2 million)

• reduced repayments for advances under the Loans to Cooperative schemes in 2017–18 ($2.6 million)

• increased repayments for advances made under various Commonwealth Concessional loans schemes in 2017–18 ($2.3 million)

partially offset by

• decreased capital expenditure in 2017–18 ($6.3 million).

The $5.8 million increase in net financing cash flows is primarily due to:

• reduced repayments of borrowings under the various Commonwealth Concessional Loan schemes ($10.4 million)

partially offset by

• reduced proceeds of borrowings following advances under the various Commonwealth Concessional Loan schemes in 2017–18 ($4.6 million).





No major variances.


No major variances.


No major variances.



No major variances.


No major variances.


No major variances.



No major variances.


No major variances.


No major variances.

Additional information for administered items-




Additional information for administered items for the Department of Primary Industries and Regional Development Statement of cash flows

2018–19 Budget

2017–18 Estimated


2016–17 Actual

$000 $000 $000 $000


Cash outflows Employee benefit payments

Parliamentary salaries and electorate expense allowances ..................................................................... 377 614 719 699 Various industry funds .................................................... 101 99 114 31

Payments for supplies and services Various industry funds .................................................... 2 270 2 207 1 474 2 076

Grants and subsidies Regulatory fees paid from Fisheries Research and Development Fund ......................................................... 578 578 797 534 Regulatory fees paid from Aquaculture Resource Management Fund ......................................................... 277 277 165 165 Forestry community service obligation payment............... 4 102 4 379 4 379 3 620 Various industry funds .................................................... 11 204 11 600 8 831 9 198

Intra-government transfers Regulatory fees transferred from Fisheries Research and Development Fund................................................... 13 047 12 816 12 471 12 038 Regulatory fees transferred from Aquaculture Resource Management Fund .......................................... 1 270 1 641 1 697 1 536 Forestry community service obligation payment............... 419 409 409 788 Various industry funds .................................................... 3 861 4 191 4 039 3 488

Other payments Various industry funds ................................................... 108 108 91 155


Cash inflows

Intra-government transfers Various industry funds .................................................... 2 2 2 —

Fees, fines and penalties Fisheries licence fees ..................................................... 14 927 14 669 14 138 13 959 Aquaculture licence fees ................................................. 647 1 169 1 172 1 114 Various industry funds .................................................... 108 104 104 343

Sales of goods and services Various industry funds ................................................... 894 883 783 525

Interest received Various industry funds .................................................... 332 309 309 223

Other receipts Various industry funds .................................................... 14 103 13 092 12 793 14 747




2018–19 Budget

2017–18 Estimated


2016–17 Actual

$000 $000 $000 $000

State government Appropriation

Parliamentary salaries and electorate expense allowances ..................................................................... 377 614 719 699 Forestry community service obligation payment............... 4 521 4 788 4 788 3 989


Net cash provided by (+)/used in (-) operating activities -1 703 -3 289 -378 1 271

Net increase (+)/decrease (-) in cash equivalents -1 703 -3 289 -378 1 271





Agency: TAFE SA

Minister for Education


TAFE


Contents

Objective ........................................................................................................................................ 124 Ministerial responsibilities .............................................................................................................. 124 Workforce summary ...................................................................................................................... 124 Program net cost of services summary ......................................................................................... 125 Key agency outputs ....................................................................................................................... 125 Investing expenditure summary .................................................................................................... 126 Program 1: TAFE SA.................................................................................................................. 127 Financial statements ..................................................................................................................... 130 Summary of major variations......................................................................................................... 133

TAFE


Objective

TAFE SA is a statutory corporation of the Government of South Australia and is the largest vocational education and training provider in South Australia.

TAFE SA supports the state’s economic priorities by providing relevant and accessible high-quality training linked to employment outcomes.



The Hon. JA Gardner Minister for Education

1. TAFE SA Nil

Statutes


Workforce summary

FTEs as at 30 June

Agency 2018–19

Budget(a)

2017–18 Estimated


TAFE SA 2 061.1 2 234.6 2 133.5

Total 2 061.1 2 234.6 2 133.5


TAFE SA from the former Department of State Development on 1 July 2018 ................................................................................... — 2 234.6 2 133.5

Equals: data published by the Office of the Commissioner for Public Sector Employment 2 061.1 — —



TAFE



Net cost of service

2018–19 Budget

2017–18 Estimated


2016–17 Actual

Program $000 $000 $000 $000

1. TAFE SA ............................................................ -411 16 214 -2 807 -6 072

Total -411 16 214 -2 087 -6 072 Reconciliation to agency net cost of providing services (as per Program summary — expenses, income and FTEs)

Less: Net costs of programs/functions transferred in: TAFE SA from the former Department of State Development on 1 July 2018 .................................... — 16 214 -2 807 -6 072 Equals: Net cost of providing services (as per agency statement of comprehensive income) -411 — — —

Key agency outputs

• Provide high-quality training and skills development targeted to South Australia’s economicpriorities and workforce needs that are linked to employment opportunities. This includes playing akey role in supporting the government’s commitment to:

– create an additional 20 800 apprenticeships and traineeships in South Australia over the nextfour years

– ensure South Australia has the skilled workforce to capitalise on the CommonwealthGovernment’s investment in naval shipbuilding

– change attitudes towards skilled careers

– engage effectively with industry, including through the new Industry Skills Councils.

• Attract students from a variety of backgrounds, including from regional and remote communitiesand groups experiencing disadvantage.

• Diversify the Corporation’s income stream through expansion into new markets internationallywith a greater focus on partnerships with industry.

TAFE



The 2018–19 investment program for TAFE SA is $2.9 million.

Estimated

completion

Total project


2017–18 Estimated



Existing projects Campus Efficiency Program ................. Jun 2018 2 736 — 1 215 500 Enhanced Online Learning Systems .... Dec 2018 1 012 352 271 — Total existing projects 3 748 352 1 486 500

Annual programs IT Systems and Infrastructure............... n.a. n.a. 973 2 061 992(a) Purchase of Plant and Equipment ........ n.a. n.a. 1 587 1 269 1 089 Total annual programs 2 560 3 330 2 081


(a) The 2017–18 Agency Statement for the former Department of State Development included a 2017–18 Budget for the ICT Systems and Infrastructure program of $1.984 million. This included investing expenditure for the Department of State Development and TAFE SA. As a result of the machinery of government changes effective 1 July 2018, this program has been shown separately in each agency.

TAFE


Program 1: TAFE SA


Deliver higher education and vocational training that meets the rapidly changing needs of South Australia’s workforce and economic priorities.


• Named as key partner in the new Naval Shipbuilding College, as announced by the Commonwealth and state governments. The college will connect students to endorsed providers to train thousands of workers for the warship and submarine projects.

• Partnered with Weld Australia to establish an Intelligent Welder Training Facility at TAFE SA’s Regency campus. The facility, equipped with the latest augmented reality simulators and welding systems, will be used to run accredited assessments, up-skill tradespeople and boost supply of welding graduates to the local defence shipbuilding industry.

• Continued to pursue international student recruitment and transnational engagement revenue consistent with the TAFE SA Global Engagement Strategy. This included exporting expertise through partnerships with industry overseas.

• Commenced a comprehensive quality system implementation program to drive improvements in the quality and consistency of learning and assessment materials across the organisation.

• Commenced implementation of a digital campus learning environment that enables students to acquire the skills and experiences required for a modern workforce and to prepare them for the evolving advanced technology environments required by industry.

Targets 2018–19

• Support the government’s ongoing measures to develop South Australia’s skilled workforce by engaging with industry, the community and other stakeholders to identify partnerships and collaboration opportunities including working with the re-established Industry Skills Councils.

• Continue the transformation of TAFE SA’s educational delivery, with the aim of aligning delivery to demand, consistent with market depth, maximising productivity, releasing capacity and meeting quality objectives.

• Support the growth in numbers of apprentices and trainees through renewed engagement with employers, including in the defence industry and new approaches to training delivery.

• Support the state’s economic priority to increase international student enrolments by exporting services to overseas markets.

• Continue implementation of a quality system review of learning and assessment materials across TAFE SA.

TAFE



2018–19 Budget

2017–18 Estimated


2016–17 Actual

$000 $000 $000 $000

Expenses Employee benefit expenses......................................... 223 284 227 169 208 957 214 917 Supplies and services .................................................. 119 520 122 136 117 415 101 737 Depreciation and amortisation expenses ..................... 4 908 4 823 4 823 4 835 Grants and subsidies ................................................... — — — 75 Intra-government transfers .......................................... 75 121 121 — Other expenses ........................................................... 2 506 3 081 2 555 -71 Total expenses 350 293 357 330 333 871 321 493

Income Commonwealth revenues(a) ......................................... — — 2 697 879 Intra-government transfers .......................................... 240 628 241 919 216 209 226 578 Other grants................................................................. 6 356 6 688 6 389 6 734 Sales of goods and services ........................................ 101 970 92 233 109 568 91 906 Interest revenues ......................................................... — — — 2 Net gain or loss from disposal of assets ...................... — — — -95 Other income ............................................................... 1 750 276 1 815 1 561 Total income 350 704 341 116 336 678 327 565

Net cost of providing services -411 16 214 -2 807 -6 072

FTEs as at 30 June (No.) 2 061.1 2 234.6 2 046.0 2 133.5

(a) The budget for Commonwealth revenues has been reclassified to Sale of goods and services to better reflect the contestable nature of funding being received.


The 2017–18 Estimated Result for the net cost of providing services compared with the 2017–18 Budget reflects additional funding provided to support the response to an Australian Skills Quality Authority (ASQA) audit, implementation of quality systems, deferred efficiency measures and reduced external income.

The increase in expenses from the 2017–18 Estimated Result when compared to the 2016–17 Actual primarily reflects higher rental payments due to the change to commercial rent and transfer of key TAFE SA campus assets from the former Department of State Development to Renewal SA ($22.3 million). An equivalent increase in income through intra-government transfers is offset by reduced WorkReady funding ($11.1 million).

TAFE



2018–19

Target

2017–18 Estimated

Result 2017–18

Target 2016–17

Actual

% of TAFE SA VET graduates who improved their employment circumstances after training The 2016–17 Actual, 2017–18 Estimated Result and 2018–19 Target are for government funded graduates only. The 2016–17 Actual and 2017–18 Estimated Result show the 2016 and 2017 year data respectively. Improved employment status after training is employment status changing from not employed before training to be employed after training OR employed at a higher skill level after training OR received a job-related benefit. An individual may have reported a positive response to more than one measure contributing to improved employment status after training.

60.0% 56.4% 60.0% 49.3%

% of TAFE SA VET graduates employed or in further study after training. New indicator. The 2016–17 Actual, 2017–18 Estimated Result and 2018–19 Target are for government funded training only. The 2016–17 Actual and 2017–18 Estimated Result show the 2016 and 2017 collection year data respectively.

85.0% 85.3% n.a. 84.4%

% of TAFE SA VET graduates satisfied with the overall quality of training The 2017–18 Target is reported in the TAFE SA Performance Statement. The 2016–17Actual and 2017–18 Estimated Result show the 2016 and 2017 collection year data respectively.

90.0% 90.1% 90.0% 89.5%

TAFE SA Load pass rates The 2016–17 Actual and 2017–18 Estimated Result show the 2016 and 2017 collection year data respectively. TAFE SA data complies with the Australian Vocational Education and Training Management Information Statistical Standard.

87.0% 86.8% 87.0% 88.3%

Activity indicators

2018–19

Projection

2017–18 Estimated

Result 2017–18


Actual

No. of people participating in VET in South Australia through TAFE SA The 2016–17 Actual, 2017–18 Estimated Result and 2018–19 Projection includes government and non-government funded trainees. The 2016–17 Actual and 2017–18 Estimated Result show the 2016 and 2017 collection year data respectively. TAFE SA data complies with the Australian Vocational Education and Training Management Information Statistical Standard.

51 600 49 860 45 300 56 220

No. of qualification completions through TAFE SA NCVER collects the number of completions for a full year over a two year period and this leads to a one year lag in reporting this data. The 2016–17 Actual and 2017–18 Estimated Result show 2015 and 2016 collection year data respectively which is the data latest available.

15 790 15 790 17 760 18 695

Apprentices and Trainees studying at TAFE SA Enrolments for qualifications at AQF levels 1–4 delivered through a training contract. New indicator. The 2016–17 Actual, 2017–18 Estimated Result and 2018–19 Target includes government and non-government funded students. The 2016–17 Actual and 2017–18 Estimated Result show the 2016 and 2017 collection year data respectively. TAFE SA data complies with the Australian Vocational Education and Training Management Information Statistical Standard.

5 000 4 230 n.a. 4 820

TAFE


TAFE SAStatement of comprehensive income

2018–19Budget

2017–18Estimated

Result

2017–18Budget

2016–17

Actual$000 $000 $000 $000


Salaries, wages, annual and sick leave............................. 183 940 — — —Long service leave............................................................. 7 056 — — —Payroll tax.......................................................................... 10 633 — — —Superannuation.................................................................. 19 656 — — —Other.................................................................................. 1 999 — — —

Supplies and servicesGeneral supplies and services........................................... 119 136 — — —Consultancy expenses....................................................... 384 — — —

Depreciation and amortisation.............................................. 4 908 — — —Intra government transfers.................................................... 75 — — —Other expenses..................................................................... 2 506 — — —

Total expenses 350 293 — — —

IncomeIntra-government transfers.................................................... 240 628 — — —Other grants.......................................................................... 6 356 — — —Sales of goods and services................................................. 101 970 — — —Other income........................................................................ 1 750 — — —

Total income 350 704 — — —

Net cost of providing services -411 — — —

Total comprehensive result 411 — — —

TAFE


TAFE SAStatement of financial position

2018–19Budget

2017–18Estimated

Result

2017–18Budget

2016–17

Actual$000 $000 $000 $000

AssetsCurrent assetsCash and cash equivalents................................................... 75 763 — — —Receivables.......................................................................... 17 987 — — —Inventories............................................................................ 1 000 — — —Other current assets............................................................. 1 441 — — —

Total current assets 96 191 — — —

Non current assets

Land and improvements....................................................... 3 362 — — —Plant and equipment............................................................. 10 927 — — —Intangible assets................................................................... 9 981 — — —

Total non-current assets 24 270 — — —

Total assets 120 461 — — —

LiabilitiesCurrent liabilitiesPayables............................................................................... 19 767 — — —Employee benefits

Salaries and wages........................................................... 1 097 — — —Annual leave..................................................................... 7 112 — — —Long service leave............................................................ 2 825 — — —Other................................................................................. 5 883 — — —

Short-term provisions............................................................ 1 528 — — —Other current liabilities.......................................................... 4 080 — — —

Total current liabilities 42 292 — — —


Long service leave............................................................ 60 612 — — —Long-term provisions............................................................ 3 479 — — —

Total non-current liabilities 64 091 — — —

Total liabilities 106 383 — — —

Net assets 14 078 — — —

Equity

Contributed capital................................................................ 20 452 — — —Retained earnings................................................................. -7 726 — — —Asset revaluation reserve..................................................... 1 352 — — —

Total equity 14 078 — — —


TAFE


TAFE SAStatement of cash flows

2018–19Budget

2017–18Estimated


2016–17Actual

$000 $000 $000 $000Operating activitiesCash outflowsEmployee benefit payments................................................... 213 675 — — —Payments for supplies and services...................................... 119 520 — — —Intra-government transfers..................................................... 75 — — —Other payments..................................................................... 1 769 — — —

Cash used in operations 335 039 — — —

Cash inflowsIntra-government transfers..................................................... 240 628 — — —Other grants........................................................................... 6 356 — — —Sales of goods and services.................................................. 101 970 — — —Other receipts........................................................................ 1 255 — — —

Cash generated from operations 350 209 — — —

Net cash provided by (+)/used in (-) operating activities 15 170 — — —


Cash outflowsPurchase of property, plant and equipment........................... 1 587 — — —Purchase of intangibles.......................................................... 1 325 — — —

Cash used in investing activities 2 912 — — —

Net cash provided by (+)/used in (-) investing activities -2 912 — — —

Net increase (+)/decrease (-) in cash equivalents 12 258 — — —

Cash and cash equivalents at the start of the period 63 505 — — —

Cash and cash equivalents at the end of the period 75 763 — — —

TAFE



The financial statements for TAFE SA reflect the movement of the Corporation from the former Department of State Development to the Education portfolio as a result of machinery of government changes effective 1 July 2018. TAFE SA is being reported separately from the Department for Education.

TAFE


TAFE


Agency: South Australian Tourism Commission

Minister for Trade, Tourism and Investment


Tourism


Contents

Objective ........................................................................................................................................ 138 Ministerial responsibilities .............................................................................................................. 138 Workforce summary ...................................................................................................................... 138 Program net cost of services summary ......................................................................................... 138 Key agency outputs ....................................................................................................................... 138 Investing expenditure summary .................................................................................................... 139 Program 1: Tourism Development ............................................................................................. 140 Program 2: Tourism Events ....................................................................................................... 144 Program 3: Tourism Marketing................................................................................................... 146 Financial statements ..................................................................................................................... 150 Summary of major variations......................................................................................................... 153

Tourism


Objective

The South Australian Tourism Commission (SATC) markets South Australia as a holiday destination nationally and internationally and builds the state’s events calendar by securing, developing and expanding major events and festivals to grow the visitor economy and create jobs for the state. SATC is working towards achieving the state’s tourism annual expenditure potential of $8 billion by 2020.



The Hon. DW Ridgway Minister for Trade, Tourism and Investment

1. Tourism Development 1.1 Destination Development 1.2 Strategy and Policy

2. Tourism Events Nil 3. Tourism Marketing 3.1 Domestic Marketing

3.2 International and Trade Marketing

Statutes


Workforce summary

FTEs as at 30 June

Agency 2018–19

Budget(a)

2017–18 Estimated


South Australian Tourism Commission ........................................... 132.3 136.1 127.6

Total 132.3 136.1 127.6





2018–19 Budget

2017–18 Estimated


2016–17 Actual

Program $000 $000 $000 $000

1. Tourism Development ........................................ 11 333 16 930 15 229 15 477

2. Tourism Events .................................................. 39 857 45 481 38 763 38 082

3. Tourism Marketing ............................................. 36 726 36 686 35 120 36 250

Total 87 916 99 097 89 112 89 809

Key agency outputs

• Promote Adelaide and South Australia as a tourism destination and convert this to visitation andexpenditure within the state to support not only tourism operators, but also the wider visitoreconomy, including the food and wine/beverage sector, arts institutions, education, hospitality,accommodation and transport.

Tourism


• Build the state’s event calendar by managing and developing existing events, sponsoring, biddingand securing new major events to further grow visitation and in turn, expenditure and jobs in SouthAustralia.

• Market SATC managed and sponsored events to grow awareness and visitation and showcaseAdelaide as a vibrant and contemporary city as well as drive commercial revenue across the sixevents managed by the SATC.

• Drive increases in conference expenditure in South Australia through the Conventions Bid Fund tosupport the visitor economy and its stakeholders.

• Increase awareness of tourism as a pillar of the State’s economic prosperity and highlight theSATC’s role in driving growth in tourism.

• Lead initiatives that create advocates for tourism and the visitor economy.

• Provide leadership in research, insights and tourism planning to the South Australian tourismindustry, primarily through publications to the SATC Corporate Website, regional engagement andworking directly with tourism businesses.

• Engage with government and external stakeholders to ensure the tourism industry operates in anenvironment with the best possible conditions for growth.

• Build the supply side of tourism in South Australia by increasing industry capability, promotingtourism infrastructure investment, and improving ease of access to and within the state, includingfacilitating cruise ship arrivals and attracting airlines to increase visitation and expenditure inAdelaide and regional South Australia.

• Facilitate alignment between regional tourism organisations and other stakeholders in the visitoreconomy to deliver outcomes to maximise economic benefit to Adelaide and regional SouthAustralia.


The 2018–19 investment program is $650 000.

This program represents minor information technology and other equipment works.

Estimated completion

Total project


2017–18 Estimated



Major projects Office works and fit out Jun 2018 1 000 — 1 000 — Total major projects 1 000 — 1 000 —

Annual program Capital works and equipment n.a. n.a. 650 646 646 Total annual programs 650 646 646

Total investing expenditure 650 1 646 646

Tourism


Program 1: Tourism Development


To build tourism opportunities by improving visitor access into and around the state, building industry capability and providing advice to the industry in terms of research, policy and planning.

Sub-programs

1.1 Destination Development

1.2 Strategy and Policy


2018–19 Budget

2017–18 Estimated


2016–17 Actual

$000 $000 $000 $000

Expenses Employee benefit expenses......................................... 2 114 2 156 2 428 2 335 Supplies and services .................................................. 2 508 4 890 5 107 2 358 Depreciation and amortisation expenses ..................... 159 99 54 22 Grants and subsidies ................................................... 7 452 11 371 8 093 11 463 Intra-government transfers .......................................... 1 1 1 — Other expenses ........................................................... 24 23 22 52 Total expenses 12 258 18 540 15 705 16 230

Income Commonwealth revenues ............................................ — 100 — 250 Other grants................................................................. 192 540 — — Sales of goods and services ........................................ 809 970 476 500 Net gain or loss from disposal of assets ...................... -76 — — -1Other income ............................................................... — — — 4 Total income 925 1 610 476 753


FTEs as at 30 June (No.) 12.5 14.9 15.4 13.2

Tourism


Sub-program 1.1: Destination Development


To facilitate the building of tourism capability in South Australia in terms of increasing industry capability, promoting tourism infrastructure investment and improving ease of access to and within the state, including aviation attraction and facilitating cruise ship arrivals.


• Collaborated with the Regional Tourism Chairs Forum to drive the development of the SouthAustralian Regional Tourism Strategy (released in June 2018), the first such strategy to encompassthe state’s 11 tourism regions.

• Hosted 65 cruise ship visits to South Australian ports, with a total capacity of 150 513 passengersand crew. There were 37 cruise ship visits to the Port Adelaide Passenger Terminal, 19 visits toPenneshaw, Kangaroo Island and nine visits to Port Lincoln.

• Partnered with Tourism Australia and Austrade to host an international investors familiarisationfeaturing eight tourism investment opportunities across Kangaroo Island. Currently, five projectsare being considered for investment from international investors.

• Worked with Greaton Development, which announced a partnership with Marriott International tobuild a 5-star luxury 285 room Westin Hotel in Adelaide CBD by 2022.

• In partnership with Adelaide Airport Limited, secured QantasLink to operate direct flights toKangaroo Island from Adelaide and during the peak summer period from Melbourne.

• Through a partnership with Telstra, commenced installation of 60 Wi-Fi hotspots across the stateproviding free access to the internet at key tourism locations, allowing visitors to access tourisminformation, make online bookings and access social media forums to share South Australiantourism messages during their travels. Signage installed at these locations promotes the availabilityof the Wi-Fi hotspots, touring routes and local tourism information.

Targets 2018–19

• Host 86 cruise ship visits to South Australian ports, with a total capacity of 181 775 passengers andcrew. This target includes 43 visits to the Port Adelaide Passenger Terminal, 30 visits toPenneshaw, Kangaroo Island and 13 visits to Port Lincoln.

• Increase South Australia’s range of saleable tourism product by working one-on-one with tourismoperators to build their business capabilities and to develop new and enhanced tourism productswith high consumer appeal.

• Continue facilitating investment opportunities for tourism developments in Adelaide and regionalSouth Australia.

• Continue to work with international, domestic and regional airlines to increase direct flights to andwithin South Australia and to ensure that current capacity is maintained.

• Complete the installation of Wi-Fi hotspots at key tourism locations across the state.

• Apply the agency’s human resources to assist in the implementation of the South AustralianRegional Tourism Strategy and provide a secretariat to the Regional Visitor Strategy SteeringCommittee.

• Conduct a feasibility study on the development of a tourism cycling trail from Adelaide toMelbourne.

Tourism


2018–19 Budget

2017–18 Estimated


2016–17 Actual

$000 $000 $000 $000 Expenses ..................................................................... 6 859 9 653 7 071 10 772 Income ......................................................................... 744 807 448 685 Net cost of sub-program 6 115 8 846 6 623 10 087

FTEs as at 30 June (No.) 7.8 8.7 8.8 8.6


The higher expenditure in the 2017–18 Estimated Result compared to the 2018–19 Budget and the 2017–18 Budget is due to contractual arrangements with providers of transport access to South Australia and a grant to Flinders Ports as a contribution towards the upgrade of the Port Adelaide Passenger Terminal in 2017–18.

The decreased expenditure in the 2017–18 Estimated Result compared to the 2016–17 Actual is due to contractual arrangements with providers of transport access to South Australia.

Sub-program 1.2: Strategy and Policy


To develop and influence strategies and policies to support government economic and tourism objectives, provide market research that underpins those policies and provide valuable robust data for the tourism industry to help plan for future growth.


• Undertook measurement of the South Australian tourism industry through partnership with Tourism Research Australia, with this research quantifying the tourism industry reaching a record $6.7 billion in visitor expenditure in the year to March 2018. South Australia remains on track to achieve its headline target of $8.0 billion in annual visitor expenditure by December 2020.

• Conducted cooperative international research with Tourism Australia to identify the core drivers of tourism appeal for South Australia, with results flowing into international marketing strategies.

• Worked with the Adelaide Convention Bureau and the Adelaide Convention Centre to leverage the Convention Bid Fund and attract high quality business conventions and events to Adelaide. The Adelaide Convention Bureau reports that the Convention Bid Fund has so far secured 74 conventions, which will attract approximately 92 000 delegates, generating approximately 470 000 bed nights with an estimated economic value of $449 million.

• Secured Commonwealth Government funding for the final year of the national Tourism Demand Driver Infrastructure program to further enhance South Australia’s tourism experiences.

• Successfully partnered with the South Australian Tourism Industry Council (SATIC) to continue the industry training program, Service IQ, for another year. In addition, partnered with SATIC to continue the improved support program for South Australian tourism operators entering the State and National Tourism Awards.

• Continued to collaborate with organisations, including Tourism Australia to promote positive tourism messages to key stakeholders and to highlight the importance of the visitor economy and the role of tourism in transforming the South Australian economy.

Tourism


Targets 2018–19

• Undertake measurement of the South Australian tourism industry through Tourism ResearchAustralia and ensure reporting against the key metrics outlined in the South Australian TourismPlan 2020 and the SATC Corporate Plan 2018–2020.

• Commence the development of the next South Australian Tourism Plan, including undertakingbroad consultation across the tourism industry, government and other key stakeholders.

• Attract conference delegates to the Adelaide Convention Centre and regional conference facilities,generating significant bed nights which supports the local hotel industry and local jobs.

• Work with the Department of Environment and Water to continue the implementation of the‘Nature Like Nowhere Else’ tourism strategy including the activation of the Nature Based TourismOpportunities.

• Identify candidate projects for the Commonwealth Government’s Building Better Regions PhaseThree Funding for 2018–19 once criteria are finalised.

• Contribute to the success of the tourism industry by identifying where planning, policy and projectobjectives of government agencies and industry can be utilised, influenced or improved for thebenefit of tourism.

2018–19 Budget

2017–18 Estimated


2016–17 Actual


FTEs as at 30 June (No.) 4.7 6.2 6.6 4.6


The higher expenditure in the 2017–18 Estimated Result compared to the 2018–19 Budget and the 2016–17 Actual is due to South Australia hosting the Australian Tourism Exchange 2018 in April.

Tourism


Program 2: Tourism Events


To strategically build and promote the state’s event calendar by developing and attracting new events and managing and growing existing events.


• The Santos Tour Down Under celebrated its 20th year in 2018, attracting a record 46 000 event specific visitors, injecting $63.7 million into the South Australian economy and creating 774 full-time equivalent jobs as well as generating $157 million of media coverage.

• The 2018 Adelaide 500 continued to deliver strong economic and tourism benefit for South Australia, with an estimated 273 500 spectators attending the four-day event. Adelaide 500 remains Australia’s largest ticketed domestic motor sport event driving an economic impact of $41.9 million into the state’s economy.

• Tasting Australia 2018 showcased the best of South Australia’s food, beverage and wine over ten days, reinforcing South Australia’s reputation as a destination offering world class culinary experiences. The 2018 event had 54 000 attendees through Town Square (Victoria Square), generated 41 000 visitor bed nights, and saw the inaugural Tasting Australia Airlines, chartering visitors to Kangaroo Island, Mayura Station (Limestone Coast), and Coffin Bay (Eyre Peninsula).

• The 2017 Adelaide Fashion Festival ran across five days incorporating 22 events and 10 designer runways, (including more than 30 South Australian fashion designers), seeing an overall attendance of 335 000. The Festival generated more than $45 million in retail sales, primarily through the retail activation of Vogue Festival in Rundle Mall and Rundle Street precincts as well as a PR reach of $71 million.

• The Credit Union Christmas Pageant, which celebrated 85 years in 2017, drew a live audience of 449 000 (at the event and on television) and drove 94 per cent hotel occupancy in the city.

• The Bridgestone World Solar Challenge, which celebrated its 30-year anniversary, saw 38 teams from 19 countries participate, generated more than $11 million economic impact nationally and remains one of the world’s great engineering events and continues to position South Australia as a leader in technology and innovation.

• A total of 65 major international, national, and regional events were supported by Events South Australia. Seventeen new major events were secured through the Leisure Events Bid Fund, which are forecast to inject more than $119 million into the South Australian economy, including the ISPS Handa Women’s Australian Open Golf (2019–2021), 2018 Colours of Impressionism Exhibition, a 2020 NRL State of Origin match, matches within the 2020 ICC World Twenty20 and the Hamlet production in the 2018 Adelaide Festival.

Targets 2018–19

• Utilise the Leisure Events Bid Fund to build the state’s event calendar.

• Continue to support, grow and market existing events and festivals — including the six SATC owned and managed events (listed in Highlights 2017–18) — to increase event specific visitation and generate media and broadcast coverage for South Australia as a tourism destination.

• Continue to support regional events through the Regional Events and Festivals program to drive regional dispersal.

• Provide leadership to the South Australian events and festivals industry, and develop the capacity building program for major, regional and local community events and festivals across the state.

Tourism



2018–19 Budget

2017–18 Estimated


2016–17 Actual

$000 $000 $000 $000

Expenses Employee benefit expenses......................................... 6 588 6 409 6 322 5 547 Supplies and services .................................................. 45 643 50 229 54 278 55 753 Depreciation and amortisation expenses ..................... 1 669 1 912 2 090 1 658 Grants and subsidies ................................................... 10 566 8 837 1 021 119 Intra-government transfers .......................................... 5 5 4 — Other expenses ........................................................... 67 68 69 190 Total expenses 64 538 67 460 63 784 63 267

Income Intra-government transfers .......................................... — — — 605 Other grants................................................................. 7 839 7 214 — — Sales of goods and services ........................................ 16 966 14 663 24 919 24 461 Interest revenue ........................................................... 104 102 102 110 Net gain or loss from disposal of assets ...................... -228 — — -4Other income ............................................................... — — — 13 Total income 24 681 21 979 25 021 25 185


FTEs as at 30 June (No.) 57.0 57.0 53.0 52.2


The higher expenditure in the 2017–18 Estimated Result compared to the 2018–19 Budget, the 2017–18 Budget and the 2016–17 Actual is due to an increase in expenditure associated with supporting events including sponsorship and operating costs for managed events such as the Adelaide 500.

The lower income in the 2017–18 Estimated Result compared to the 2018–19 Budget, the 2017–18 Budget and the 2016–17 Actual is due to a decrease in receipts from sponsorship revenue and managed events.

Tourism


Program 3: Tourism Marketing


To develop and implement marketing activities and campaigns to increase the number of international and national visitors to and within South Australia.

Sub-programs

3.1 Domestic Marketing

3.2 International and Trade Marketing


2018–19 Budget

2017–18 Estimated


2016–17 Actual

$000 $000 $000 $000

Expenses Employee benefit expenses......................................... 5 734 6 212 6 026 6 717 Supplies and services .................................................. 30 940 31 543 29 618 29 931 Depreciation and amortisation expenses ..................... 482 299 166 66 Grants and subsidies ................................................... — — 17 26 Intra-government expenses ......................................... 4 4 5 — Other expenses ........................................................... 73 68 68 367 Total expenses 37 233 38 126 35 900 37 107

Income Intra-government transfers .......................................... — — — 27 Other grants................................................................. — 158 — — Sales of goods and services ........................................ 738 1 282 780 807 Net gain or loss from disposal of assets ...................... -231 — — -2 Other income ............................................................... — — — 25 Total income 507 1 440 780 857


FTEs as at 30 June (No.) 62.8 64.2 59.8 62.2

Tourism


Sub-program 3.1: Domestic Marketing


To develop and implement national marketing campaigns to grow awareness of the state’s tourism experiences and as a result increase visitation to and within South Australia.


• Grew the domestic market’s tourism expenditure from $5.3 billion in March 2017 to $5.5 billion in March 2018, a growth rate of five per cent. This result included record highs for domestic overnight trips — up five per cent to 6.4 million, domestic nights — up nine per cent to 23.5 million and day trip expenditure — up 17 per cent to a record $1.6 billion.

• A heavy focus on increasing intrastate visitation via outdoor and digital media, using strong imagery and motivating headlines, encouraged locals to not just visit a region, but also to stay overnight, resulting in a record uplift of 15 per cent to 12.3 million nights. Overall intrastate expenditure grew five per cent to $1.9 billion.

• Aligned with top rated Australian culinary television program, MasterChef Australia, to position the state as a premier food and drink destination, which included extensive advertising throughout the entire show’s duration, promoting South Australia’s food and drink tourism experiences. A six episode ‘SA Week’ achieved an average nightly audience of 1.16 million viewers and a total public relations value of $17.6 million, with a collective audience reach of 10.9 million.

• Increased traffic to southaustralia.com by 43 per cent to 5.4 million visits. These visits resulted in 275 000 leads and referrals to individual South Australian tourism operators, and a further 158 000 leads and referrals to key airline partners.

• Increased the SATC’s collective social media following by 477 056, to a record 1.79 million followers across Facebook, Instagram and Twitter. This significantly expands the reach of South Australian tourism messaging direct to consumers and resulting in a record 141 972 leads to southaustralia.com from social media.

• Partnered with key travel trade partners to undertake intra and interstate partnership campaigns to drive bookings and sales of South Australian tourism packages and products. Key partners included Webjet, Discover Australia Holidays, Wotif, Helloworld Jetstar, Qantas, Virgin Australia, Regional Express and The Expedia Group.

Targets 2018–19

• Evolve brand strategy and guidelines to deliver a new global campaign that positions South Australia as a ‘place that rewards wonder’, aimed at increasing awareness, consideration and visitation for the state.

• Further enhance southaustralia.com to improve user experience and conversion rates to deliver increased value to South Australian tourism operators and key airline partners by means of qualified leads and referrals leading to increased bookings.

• Work closely with key airline partners to drive sales into Adelaide and beyond to all South Australian ports.

• Secure national PR coverage across top-tier media outlets to position South Australia as a must-see travel destination through sponsored television programs, media familiarisation visits and publicity initiatives.

• Promote South Australia through the SATC’s social media channels, including Facebook, Instagram, Twitter and YouTube, with engaging content and inspirational imagery that positions the state as a must-see travel destination and deliver leads to southaustralia.com thus resulting in referrals to tourism industry operators.

• Collaborate with key travel trade partners in targeted domestic markets to further grow awareness of South Australia.

Tourism


2018–19 Budget

2017–18 Estimated


2016–17 Actual


FTEs as at 30 June (No.) 42.4 42.7 42.5 42.0



Sub-program 3.2: International and Trade Marketing


Position South Australia as a compelling part of an Australian journey for overseas visitors by working cooperatively with distribution partners and implementing marketing campaigns to ensure consumers are aware of, and visit, South Australia as a holiday destination.


• Grew the International market’s tourism expenditure from $1.1 billion in March 2017 to $1.2 billion in March 2018, a growth rate of 10 per cent. This result included attracting 475 000 international tourists (nine per cent increase), spending 11.1 million nights in South Australia (four per cent increase).

• In December 2017, the SATC announced Chinese celebrity Huang Xiaoming as South Australian Tourism Ambassador for 12 months. Mr Huang visited South Australia in November 2017, with images and video content generated from this visit being used in the SATC’s marketing activities in China and Hong Kong. The resultant uplift in visitation has contributed to China Southern confirming an increase in capacity, up to daily flights in summer 2018–19.

• Partnering with Ctrip (China’s largest online travel agent), the SATC used the Huang Xiaoming campaign to drive awareness and bookings to South Australia. The campaign content reached 79.4 million people and generated a 49 per cent increase in bookings over the campaign period.

• A campaign was undertaken with Air New Zealand to promote South Australia’s food and wine experiences and create awareness of the airline’s direct flight from Auckland to Adelaide. As at March 2018, New Zealand’s year on year visitor numbers were up 16 per cent.

• The key campaign for the UK was the Ashes in December 2017, involving working with key influencers and press and media marketing. The campaign placed with key distribution partners resulted in 68 000 leads. A total of 11 000 tickets were sold to UK tourists, and 55 per cent of the tickets sold at Adelaide Oval during the Ashes were to tourists.

Targets 2018–19

• Position South Australia as a compelling part of an Australian holiday and as a destination focusing on the themes of nature and wildlife, food and wine, and aquatic and coastal.

• Continue to collaborate with key travel trade partners whose brand is a household name to the consumer and can offer return on investment on partnership campaigns.

Tourism


• Work closely with key airline partners to drive seat sales into Adelaide as a gateway to Australia.

• Leverage the broadcast of MasterChef Australia’s South Australia Week in the key SATC tourism source markets of India, Singapore, Malaysia and New Zealand to position South Australia as a premier food and drink destination in Australia.

2018–19 Budget

2017–18 Estimated


2016–17 Actual


FTEs as at 30 June (No.) 20.4 21.5 17.3 20.2


The decrease in expenses in the 2018–19 Budget compared to the 2017–18 Estimated Result is due to a reduction in cooperative marketing campaigns to promote Adelaide and regional tourism experiences and products.

Tourism


South Australian Tourism CommissionStatement of comprehensive income

2018–19Budget

2017–18Estimated

Result

2017–18Budget

2016–17

Actual$000 $000 $000 $000


Salaries, wages, annual and sick leave............................. 12 028 12 158 12 156 11 860Long service leave............................................................. 353 361 361 362Payroll tax.......................................................................... 675 682 683 666Superannuation.................................................................. 1 198 1 203 1 203 1 132Other.................................................................................. 182 373 373 579

Supplies and servicesGeneral supplies and services........................................... 79 091 86 662 89 003 88 040Consultancy expenses....................................................... — — — 2

Depreciation and amortisation.............................................. 2 310 2 310 2 310 1 746Grants and subsidies............................................................ 18 018 20 208 9 131 11 608Intra government transfers.................................................... 10 10 10 —Other expenses..................................................................... 164 159 159 609

Total expenses 114 029 124 126 115 389 116 604

IncomeCommonwealth revenues..................................................... — 100 — 250Intra-government transfers.................................................... — — — 632Other grants.......................................................................... 8 031 7 912 — —Sales of goods and services................................................. 18 513 16 915 26 175 25 768Interest revenues.................................................................. 104 102 102 110Net gain or loss on disposal of assets.................................. -535 — — -7Other income........................................................................ — — — 42

Total income 26 113 25 029 26 277 26 795





Total comprehensive result -535 3 075 — -688

Tourism


South Australian Tourism CommissionStatement of financial position

2018–19Budget

2017–18Estimated

Result

2017–18Budget

2016–17

Actual$000 $000 $000 $000

AssetsCurrent assetsCash and cash equivalents................................................... 16 244 14 534 13 913 10 889Receivables.......................................................................... 2 039 2 155 1 458 2 271Other current assets............................................................. 223 223 401 223


Non current assets

Plant and equipment............................................................. 9 570 11 765 10 099 12 429Other non-current assets...................................................... — — 22 —


Total assets 28 076 28 677 25 893 25 812


Salaries and wages........................................................... 308 309 203 312Annual leave..................................................................... 795 806 685 817Long service leave............................................................ 251 251 279 251Other................................................................................. 56 56 46 56

Short-term provisions............................................................ 10 10 13 10Other current liabilities.......................................................... 1 605 1 618 1 519 1 759



Long service leave............................................................ 1 949 1 949 1 859 1 949Long-term provisions............................................................ 20 17 25 15Other non-current liabilities................................................... 173 217 424 274



Net assets 18 303 18 838 16 451 15 763

Equity

Contributed capital................................................................ 64 64 64 64Retained earnings................................................................. 15 735 16 124 13 737 13 049Asset revaluation reserve..................................................... 2 504 2 650 2 650 2 650

Total equity 18 303 18 838 16 451 15 763


Tourism


South Australian Tourism CommissionStatement of cash flows

2018–19Budget

2017–18Estimated

Result

2017–18Budget

2016–17

Actual$000 $000 $000 $000

Operating activitiesCash outflowsEmployee benefit payments................................................... 14 445 14 789 14 788 14 180Payments for supplies and services...................................... 79 148 86 860 89 027 94 752Grants and subsidies............................................................. 18 018 20 208 9 131 11 769Intra-government transfers..................................................... 10 10 10 —Other payments..................................................................... 164 159 159 260


Cash inflowsIntra-government transfers..................................................... — — — 632Commonwealth receipts........................................................ — 100 — 250Other grants........................................................................... 8 031 7 912 — —Sales of goods and services.................................................. 18 629 17 031 26 291 26 953Interest received.................................................................... 104 102 102 110GST received......................................................................... — — — 5 036Other receipts........................................................................ — — — 104


State government

Appropriation.......................................................................... 87 381 100 908 89 112 80 371Other receipts........................................................................ — 1 264 — 8 750




Cash outflowsPurchase of property, plant and equipment........................... 650 1 646 646 1 175

Cash used in investing activities 650 1 646 646 1 175

Net cash provided by (+)/used in (-) investing activities -650 -1 646 -646 -1 175

Net increase (+)/decrease (-) in cash equivalents 1 710 3 645 1 744 70



Tourism




Expenses



• increased support of events in 2017–18 including Adelaide 500 and sponsorship of the TailemBend Supercars race ($2.9 million)

• increased expenditure in 2017–18 to host the Australian Tourism Exchange 2018 in April($3.0 million)

• the contractual arrangements with providers of transport access to South Australia ($2.8 million)

• the implementation of operating savings measures in 2018–19 ($1.4 million).



• increased support of events including Adelaide 500 and sponsorship of the Tailem Bend Supercarsrace ($5.7 million)

• the contractual arrangements with providers of transport access to South Australia ($1.0 million)

• the grant to Flinders Ports as a contribution towards the upgrade of the Port Adelaide PassengerTerminal in 2017–18 ($0.9 million).



• increased support of events including Adelaide 500 and sponsorship of the Tailem Bend Supercarsrace ($6.7 million)

• hosting the Australian Tourism Exchange 2018 in April ($3.0 million)

• the grant to Flinders Ports as a contribution towards the upgrade of the Port Adelaide PassengerTerminal in 2017–18 ($0.9 million)

partially offset by

• the contractual arrangements with providers of transport access to South Australia ($3.0 million).

Income


The $1.1 million increase in income is primarily due to:

• variations in income received from sponsorship revenue, managed events and cooperativemarketing campaigns ($1.1 million).



• variations in income received from sponsorship revenue, managed events and cooperativemarketing campaigns ($1.2 million).

Tourism




• variations in income received from sponsorship revenue, managed events and cooperative marketing campaigns ($1.8 million)















Tourism


Agency: Department for Trade, Tourism and Investment

Minister for Trade, Tourism and Investment


Trade, Tourism and Investment


Contents

Objective ........................................................................................................................................ 158 Ministerial responsibilities .............................................................................................................. 158 Workforce summary ...................................................................................................................... 159 Program net cost of services summary ......................................................................................... 159 Key agency outputs ....................................................................................................................... 160 Investing expenditure summary .................................................................................................... 161 Program 1: Investment ............................................................................................................... 162 Program 2: International Engagement, Trade, Migration and International Education ............. 164 Financial statements ..................................................................................................................... 168 Summary of major variations......................................................................................................... 173 Additional information for administered items ............................................................................... 174



Objective

Shape the transformation of the state economy by driving economic growth through trade, tourism, investment, international education and immigration.

The Department for Trade, Tourism and Investment (DTTI) was established on 1 July 2018, and integrates an investment program stream, Health Industries SA, the international engagement, trade, migration and international education functions of the former Department of State Development (DSD) and the trade functions of the Department of Primary Industries and Regions.



The Hon. DW Ridgway Minister for Trade, Tourism and Investment

1. Investment Nil

2. International Engagement, Trade, Migration and International Education

Nil

Administered Items

In addition to the above responsibilities, the department administers the following items on behalf of ministers:

• Minister’s salaries and allowances pursuant to the Parliamentary Remuneration Act 1990.

Statutes



2018–19 Budget

Cost of provision

Minister $000 FTE

The Hon. DW Ridgway .......................................................................... 2 264 13



Workforce summary

FTEs as at 30 June

Agency 2018–19

Budget(a)

2017–18 Estimated


Department for Trade, Tourism and Investment ................................. 141.1 157.7 152.3

Administered Items for the Department for Trade, Tourism and Investment .......................................................................................... 1.0 — —

Total 142.1 157.7 152.3



Investment (including Health Industries) from the Department for Industries and Skills on 1 July 2018 ................................................... — 56.2 46.6

International Engagement, Trade, Migration and International Education from the Department for Industries and Skills on 1 July 2018 ......................................................................................... — 98.1 102.7

Trade from the Department of Primary Industries and Regions on 1 July 2018 ......................................................................................... — 3.4 3.0

Equals: data published by the Office of the Commissioner for Public Sector Employment 142.1 — —





2018–19 Budget

2017–18 Estimated


2016–17 Actual

Program $000 $000 $000 $000

1. Investment ............................................................ 43 519 26 402 38 018 18 497

2. International Engagement, Trade, Migration and International Education ......................................... 18 586 24 033 20 281 22 843

Total 62 105 50 435 58 299 41 340

Reconciliation to agency net cost of providing services Less: Net costs transferred in: Investment (including Health Industries) from the Department for Industries and Skills on 1 July 2018 .... — 26 402 38 018 18 497 International Engagement, Trade, Migration and International Education from the Department for Industries and Skills on 1 July 2018 ............................ — 23 601 19 849 22 451 Trade from the Department of Primary Industries and Regions on 1 July 2018 ............................................... — 432 432 392 Equals: Net cost of providing services (as per agency statement of comprehensive income) 62 105 — — —



Key agency outputs

• Promote South Australia to the world and produce consistent state branding across trade, tourism, investment, international education and immigration activity.

• Open representative offices in priority markets.

• Target and enable export projects, facilitating South Australian companies to export, including inbound and outbound trade missions.

• Target and attract investment opportunities that will increase Foreign Direct Investment (FDI) into South Australia, grow the economy and increase employment.

• Attract and support applications for skilled and business migrants by providing information sessions and customer support to prospective migrants.

• Launch the new Entrepreneurs Supporting Innovation in SA Pilot Visa.

• Provide the link between government and all international education sectors including secretariat and policy support for the International Education Ministerial Advisory Committee and governance support to Scope Global and Study Adelaide.

• Manage government to government agreements relating to international education including sister state relationships and education platform agreements.

Note: Tourism is managed by the South Australian Tourism Commission, a standalone statutory corporation and is reported separately.




The 2018–19 investment program for DTTI is $210 000.

The Government of South Australia has committed to opening new, standalone, South Australian trade offices in China, the United States of America, Japan, Malaysia and the United Arab Emirates.

Positioning teams with local expertise in overseas markets will support direct government to government links, facilitate business introductions and provide leads to help our exporters expand across the globe and work to attract investment to the state.

Estimated

Completion

Total Project

Cost 2018–19 Budget

2017–18 Estimated



New projects

New Trade Offices ................................ Dec 2020 410 110 — —

Shanghai Business Hub ....................... Dec 2018 100 100 — — Total new projects 510 210 — —

Total investing expenditure 510 210 — —



Program 1: Investment


Target and attract investment opportunities that will increase Foreign Direct Investment (FDI) into South Australia, grow the economy and increase employment.


• Facilitated capital investment in South Australia and beneficial economic impact to the economyfrom investment projects.

• Identified and promoted a suite of investment ready projects in South Australia to internationalinvestors and companies.

• Promoted South Australia as a global business location, informing investors of the investmentopportunities available, identified and targeted new potential investors and managed an investmentportfolio of leads and enquiries.

• Targeted new business opportunities that aided South Australia’s economic transformation.

Targets 2018–19

• Creation of 2000 new jobs in target industries in South Australia from companies that are a directclient of DTTI.

• Foreign investment of $500 million into South Australia from companies that are a direct client ofDTTI.


2018–19 Budget

2017–18 Estimated


2016–17 Actual

$000 $000 $000 $000

Expenses Employee benefit expenses......................................... 8 118 8 189 8 053 7 596 Supplies and services .................................................. 3 141 3 842 3 826 3 752 Depreciation and amortisation expenses ..................... — 23 23 23 Borrowing costs ........................................................... — — — 1 Grants and subsidies ................................................... 21 516 12 947 25 969 3 666 Intra-government transfers .......................................... 10 892 2 592 1 986 3 433 Other expenses ........................................................... 2 9 11 26 Total expenses 43 669 27 602 39 868 18 497

Income Intra-government transfers .......................................... 150 1 200 1 850 — Total income 150 1 200 1 850 —


FTEs as at 30 June (No.) 49.7 56.2 49.5 46.6




The increase in expenses in the 2018–19 Budget compared to the 2017–18 Estimated Result is primarily due to the forward commitments of the Economic Investment Fund and Health Industries Fund ($16.9 million).

The decrease in expenses in the 2017–18 Estimated Result compared to the 2017–18 Budget reflects the re-profile of expenditure across the forward estimates in line with commitments of the Economic Investment Fund and Health Industries Fund ($12.4 million).

The increase in expenses in the 2017–18 Estimated Result compared to the 2016–17 Actual is primarily due to additional expenditure from the Economic Investment Fund ($9.4 million).

The movement in income across all years reflects varying contributions to the Economic Investment Fund from the Regional Development Fund managed by the Department of Primary Industries and Regions.


2018–19

Target

2017–18 Estimated

Result 2017–18

Target 2016–17

Actual

Total no. of estimated jobs from projects secured by Investment Attraction South Australia (IASA) The 2017–18 target reflects the total number of jobs to be secured since the agency’s inception in October 2015. This indicator is discontinued from 2018–19 in line with the discontinuation of IASA.

n.a. 9 384 6 000 n.a.

Attract new major health and biomedical companies to establish facilities in SA

This indicator is discontinued from 2018–19 and replaced with new indicators for the new department.

n.a. 4 4 4

Secure significant health/biomedical conferences to South Australia

This indicator is discontinued from 2018–19 and replaced with new indicators for the new department

n.a. 5 4 4

Creation of new jobs in target industries in South Australia from companies that are a direct client of DTTI New indicator to align with the objectives of the new department.

2 000 — — —

Foreign investment of $500 million into South Australia from companies that are a direct client of DTTI

New indicator to align with the objectives of the new department.

$500m — — —

Activity indicators(a)

2018–19

Projection

2017–18 Estimated

Result 2017–18


Actual

Promote South Australia in target markets by participating in delegations and business trips

n.a. 7 4 7

Develop relationships with health and biomedical clusters and industry organisations outside of Australia by signing agreements to create international opportunities for local life sciences companies

n.a. 2 2 1

Secure significant health and biomedical conferences for South Australia

n.a. 5 4 4

(a) These targets relate to Health Industries SA within the former Department of State Development in 2017–18 and 2016–17and are replaced with investment targets for DTTI in 2018–19.



Program 2: International Engagement, Trade, Migration and International Education


Develop and implement strategies and programs that facilitate international exports and high value jobs growth, the expansion of the international education sector and maximise the benefits of skilled and business migration.


• Delivered 2569 general skills migration nominations and 549 business migration nominations. This represents potentially 7800 additional people moving to South Australia if their grant applications are successful.

• Processed 1261 local employer applications for Regional Certifying Body advice to help meet skill shortages.

• Facilitated an increase in the number of jobs related to exports (currently estimated at 72 000) and contributed to continuing growth in the value and volume of South Australia’s exports by delivering an outbound and inbound business mission program in target markets and export facilitation programs.

• Delivered the government’s international program of inbound and outbound business missions in support of greater commercial engagement with target markets.

• Continued a comprehensive business education program to support business achieve trade success.

• Achieved the target for South Australia’s number of international students of 35 500 by the end of 2017.

• Delivered the TradeStart advisory program in partnership with Austrade and the Export Partnership Program, to support businesses in developing new markets.

Targets 2018–19

• Increase the export value of international education beyond $1.55 billion annually.

• Open two new trade and investment offices in global markets in 2018–19.

• Facilitate $50 million of exports through DTTI activity.

• Exceed state nominations of 2500 skilled migrants and 550 business migrants.

• Launch the new Entrepreneurs Supporting Innovation in SA Pilot Visa, leading to up to 30 visas in the first year and increasing in subsequent years.

• Provide export businesses with training, mentoring and advice on boosting markets to 400 South Australian businesses.

• Support 90 new exporters through DTTI programs.




2018–19 Budget

2017–18 Estimated

Result 2017–18

Budget(a) 2016–17

Actual

$000 $000 $000 $000

Expenses Employee benefit expenses......................................... 10 986 12 073 9 332 11 118 Supplies and services .................................................. 4 593 7 537 5 824 9 454 Depreciation and amortisation expenses ..................... 11 204 50 305 Borrowing costs ........................................................... 13 12 12 7 Grants and subsidies ................................................... 2 552 1 918 1 491 2 275 Intra-government transfers .......................................... 2 503 4 956 4 971 1 936 Other expenses ........................................................... 2 46 23 151 Total expenses 20 660 26 746 21 703 25 246

Income Commonwealth revenues ............................................ 363 357 357 292 Intra-government transfers .......................................... 109 648 107 182 Other grants................................................................. — 11 — — Fees, fines and penalties ............................................. 900 906 700 995 Sales of goods and services ........................................ — 325 155 124 Interest revenues ......................................................... — — — 200 Net gain or loss from disposal of assets ..................... — — — -1 Other income ............................................................... 702 466 103 611 Total income 2 074 2 713 1 422 2 403


FTEs as at 30 June (No.) 91.4 101.5 80 105.7

(a) The 2017–18 Budget has been updated from that published in the 2017–18 Budget Papers for comparative purposes to include the transfer of the Trade functions from Department of Primary Industries and Regions.


The decrease in expenses in the 2018–19 Budget compared to the 2017–18 Estimated Result is primarily due to a reduction in the allocation of corporate expenditure ($2.1 million) and once-off expenditure in 2017–18 to support international engagement and to build and strengthen economic ties with France ($3.0 million).

The increase in expenses in the 2017–18 Estimated Result compared to the 2017–18 Budget is primarily due to a change in the methodology for the allocation of corporate expenditure across programs ($3.9 million).


2018–19

Target

2017–18 Estimated

Result 2017–18

Target 2016–17

Actual

Trade Support South Australian companies to achieve export success in Shandong, China This indicator is discontinued from 2018–19 and replaced with new indicators for the new department.

n.a. 19 20 20



2018–19

Target

2017–18 Estimated

Result 2017–18

Target 2016–17

Actual

Trade

Support South Australian companies to achieve export success through Government of South Australia led engagement programs with China, India, South East Asia, Europe, North Asia and the Middle East North Africa region This indicator is discontinued from 2018–19 and replaced with new indicators for the new department.

n.a. 109 60 36

Total number of supported new export successes This indicator is discontinued from 2018–19 and replaced with new indicators for the new department.

n.a. 82 50 59

Value of exports facilitated by DTTI activity New indicator to align with the objectives of the new department.

$50m — — —

New exporters supported by DTTI programs to achieve sustainable exports New indicator to align with the objectives of the new department.

90 — — —

Client satisfaction on DTTI trade facilitation programs New indicator to align with the objectives of the new department.

75% — — —

Migration

Business migration (892, 893, 888 Visa): • No. of state nominations approved • No. of jobs created • Value of investments The 888 visa has been added to indicator in 2017–18. The 892, 893, 888 visa outcomes relate to business migrants who have successfully met migration requirements and can now apply for permanent residency. These outcomes are verified after two years. These indicators have been modified to align with the objectives of the new department. The 2018–19 target number of state nominations approved refers to the 888 visa only. Achievement of these targets is contingent on Commonwealth allocations.

50 10

$10m

44 6

$5m

60 60

$25m

55 49

$33m

Business migration (132, 188 Visa): • No. of state nominations approved • No. of jobs created (FTE) • Value of investments The 132, 188 visa results relate to investment outcomes anticipated by new business migrants nominated by the state to support their visa application to undertake business activities in South Australia. These outcomes are verified after two years. A nomination allows the migrant to lodge an application for a visa grant with the federal government The no. of jobs created has been discontinued from 2018–19. Achievement of these targets is contingent on Commonwealth allocations.

550

n.a. $112m

549

1 176 $20m

350 850

$360m

564

— $70m

Business migration 132 Review: • Value of investments • Value of exports facilitated The 132 visa has been added to indicator in 2018–19 for the review stage which occurs two years after the visa has been activated. There is a considerable lag between nomination and visa grant. New indicators to align with the objectives of the new department.

$14m $44m

— —

— —

— —

International Education

International student numbers 37 250 35 722 35 500 34 177 Increase the export value of international education New indicators to align with the objectives of the new department.

$1.55b — — —



Activity indicators

2018–19

Projection

2017–18 Estimated

Result 2017–18


Actual

Trade • Deliver a program of government led outbound missions • Deliver a program of government arranged inbound

missions • Delivery of Business Education program sessions • New chapters of the South Australia Club These indicators are discontinued from 2018–19 and replaced with new indicators for the new department.

n.a. n.a.

n.a. n.a.

7 36

15 —

8 27

15 —

7 28

17 4

Open new Trade and Investment Offices in global markets in 2018–19

2 — — —

Provide export businesses with training, mentoring and advice on boosting markets New indicators to align with the objectives of the new department.

400 — — —

Migration

No. of applications processed for advice by Regional Certifying Body The number of applications in 2017–18 spiked due to employers submitting applications prior to program changes coming into effect. Numbers in 2018–19 are expected to be lower due to higher requirements and costs for employers to access the Regional Sponsored Migration Scheme visa (subclass 187), there is some carryover of applications that were not able to be processed in 2017–18. New indicators to align with the objectives of the new department. Achievement of these targets is contingent on Commonwealth allocations.

600 1 261 (779 assessed

as satisfied)

300 1 037 (666 assessed

as satisfied)

No. of skilled nominations approved (489, 190, Visa subclass) New indicators to align with the objectives of the new department. Achievement of these targets is contingent on Commonwealth allocations.

2 500 2 569 2 400 2 447

Business migration 132 Review: • No. of reviews undertaken The 132 visa has been added to indicator in 2018–19 for the review stage which occurs two years after the visa has been activated. There is a considerable lag between nomination and visa grant. New indicators to align with the objectives of the new department. Achievement of these targets is contingent on Commonwealth allocations.

80

—

—

—

New Entrepreneurs Supporting Innovation in SA Pilot Visa recipients New indicators to align with the objectives of the new department.

30 — — —

No. of overseas qualification recognition services processed New indicators to align with the objectives of the new department.

1 000 — — —



Department for Trade, Tourism and InvestmentStatement of comprehensive income

2018–19Budget

2017–18Estimated

Result

2017–18Budget

2016–17

Actual$000 $000 $000 $000


Salaries, wages, annual and sick leave............................. 16 033 — — —Long service leave............................................................. 457 — — —Payroll tax.......................................................................... 856 — — —Superannuation.................................................................. 1 697 — — —Other.................................................................................. 61 — — —

Supplies and servicesGeneral supplies and services........................................... 7 702 — — —Consultancy expenses....................................................... 32 — — —

Depreciation and amortisation.............................................. 11 — — —Borrowing costs.................................................................... 13 — — —Grants and subsidies............................................................ 24 068 — — —Intra government transfers.................................................... 13 395 — — —Other expenses..................................................................... 4 — — —

Total expenses 64 329 — — —

IncomeCommonwealth revenues..................................................... 363 — — —Intra-government transfers.................................................... 259 — — —Fees, fines and penalties...................................................... 900 — — —Other income........................................................................ 702 — — —

Total income 2 224 — — —

Net cost of providing services 62 105 — — —


IncomeAppropriation...................................................................... 57 889 — — —

Net income from/expenses to state government 57 889 — — —

Total comprehensive result -4 216 — — —



Department for Trade, Tourism and InvestmentStatement of financial position

2018–19Budget

2017–18Estimated


2016–17Actual

$000 $000 $000 $000AssetsCurrent assetsCash and cash equivalents................................................... 13 940 — — —Receivables.......................................................................... 42 — — —Other current assets............................................................. 106 — — —

Total current assets 14 088 — — —

Non current assets

Financial assets.................................................................... 6 486 — — —Land and improvements....................................................... 511 — — —Heritage assets..................................................................... 53 — — —

Total non-current assets 7 050 — — —

Total assets 21 138 — — —

LiabilitiesCurrent liabilitiesPayables............................................................................... 3 019 — — —Employee benefits

Salaries and wages........................................................... 281 — — —Annual leave..................................................................... 1 200 — — —Long service leave............................................................ 93 — — —Other................................................................................. 83 — — —

Short-term provisions............................................................ 2 — — —

Total current liabilities 4 678 — — —


Long service leave............................................................ 2 601 — — —Other................................................................................. 29 — — —

Long-term provisions............................................................ 3 — — —

Total non-current liabilities 2 633 — — —

Total liabilities 7 311 — — —

Net assets 13 827 — — —

Equity

Retained earnings................................................................. 9 945 — — —Other reserves...................................................................... 3 882 — — —

Total equity 13 827 — — —




Department for Trade, Tourism and InvestmentStatement of cash flows

2018–19Budget

2017–18Estimated

Result

2017–18Budget

2016–17

Actual$000 $000 $000 $000

Operating activitiesCash outflowsEmployee benefit payments................................................... 15 691 — — —Payments for supplies and services...................................... 7 525 — — —Interest paid........................................................................... 13 — — —Grants and subsidies............................................................. 24 068 — — —Intra-government transfers..................................................... 13 395 — — —Other payments..................................................................... 4 — — —

Cash used in operations 60 696 — — —

Cash inflowsIntra-government transfers..................................................... 259 — — —Commonwealth receipts........................................................ 333 — — —Fees, fines and penalties....................................................... 900 — — —Dividends received................................................................. 600 — — —Other receipts........................................................................ 102 — — —

Cash generated from operations 2 194 — — —

State government

Appropriation.......................................................................... 57 889 — — —

Net cash provided by state government 57 889 — — —

Net cash provided by (+)/used in (-) operating activities -613 — — —


Cash outflowsPurchase of property, plant and equipment........................... 210 — — —

Cash used in investing activities 210 — — —

Net cash provided by (+)/used in (-) investing activities -210 — — —


Cash inflowsCash transfers from restructuring activities............................ 14 763 — — —

Cash generated from financing activities 14 763 — — —

Net cash provided by (+)/used in (-) financing activities 14 763 — — —

Net increase (+)/decrease (-) in cash equivalents 13 940 — — —

Cash and cash equivalents at the start of the period — — — —

Cash and cash equivalents at the end of the period 13 940 — — —



Administered Items for the Department for Trade, Tourism and InvestmentStatement of comprehensive income

2018–19Budget

2017–18Estimated

Result

2017–18Budget

2016–17

Actual$000 $000 $000 $000


Salaries, wages, annual and sick leave............................. 364 — — —

Total expenses 364 — — —


IncomeAppropriation...................................................................... 364 — — —

Net income from/expenses to state government 364 — — —

Total comprehensive result — — — —



Administered Items for the Department for Trade, Tourism and InvestmentStatement of cash flows

2018–19Budget

2017–18Estimated

Result

2017–18Budget

2016–17

Actual$000 $000 $000 $000

Operating activitiesCash outflowsEmployee benefit payments................................................... 364 — — —

Cash used in operations 364 — — —

State government

Appropriation.......................................................................... 364 — — —

Net cash provided by state government 364 — — —

Net cash provided by (+)/used in (-) operating activities — — — —

Net increase (+)/decrease (-) in cash equivalents — — — —

Cash and cash equivalents at the start of the period — — — —

Cash and cash equivalents at the end of the period — — — —




The financial statements reflect the establishment of the department on 1 July 2018. The financial information for the 2017–18 Estimated Result, 2017–18 Budget and 2016–17 Actual relating to the functions transferred into the department are incorporated in the financial statements of the Department for Industry and Skills and Department of Primary Industries and Regions.


Additional information on administered items is included in the following tables.



Additional information for administered items for the Department for Trade, Tourism and Investment Statement of cash flows

2018–19 Budget

2017–18 Estimated


2016–17 Actual

$000 $000 $000 $000


Cash outflows

Employee benefit payments Parliamentary salaries and electorate expense allowances ....................................................................... 364 103 — —

Cash used in operations 364 103 — —

State government

Appropriation Parliamentary salaries and electorate expense allowances ....................................................................... 364 103 — —

Net cash provided by state government 364 103 — —

Net cash provided by (+)/used in (-) operating activities — — — —

Net increase (+)/decrease (-) in cash equivalents — — — —

Cash and cash equivalents at the start of the financial year (as at 1 July) — — — —

Cash and cash equivalents at the end of the financial year (as at 30 June) — — — —



Additional information for administered items for the Department for Trade, Tourism and Investment Reconciliation to statement of cash flows

2018–19 Budget

2017–18 Estimated


2016–17 Actual

$000 $000 $000 $000

Reconciliation to appropriation Appropriation (as per additional information for administered items) ............................................................... 364 103 — — Less: Transferred in:

Parliamentary salaries and electorate expense allowances ....................................................................... — 103 — —

Equals: Operating payments (as per administered items statement of cash flows) 364 — — —

Reconciliation to appropriation

Appropriation (as per additional information for administered items) ............................................................... 364 103 — — Less: Transferred in:

Parliamentary salaries and electorate expense allowances ....................................................................... — 103 — —

Equals: Appropriation (as per administered items statement of cash flows) 364 — — —



Agency: Department of Treasury and Finance

Treasurer


Treasury and Finance


Contents

Objective ....................................................................................................................................... 180 Ministerial responsibilities ............................................................................................................. 180 Ministerial office resources ........................................................................................................... 180 Workforce summary ..................................................................................................................... 181 Program net cost of services summary ........................................................................................ 182 Key agency outputs ....................................................................................................................... 183 Investing expenditure summary ................................................................................................... 183 Program 1: Accountability for Public Sector Resources ........................................................... 184 Program 2: Treasury Services .................................................................................................. 187 Program 3: Industrial Relations .................................................................................................. 193 Program 4: Government Services .............................................................................................. 198 Financial statements .................................................................................................................... 202 Summary of major variations ....................................................................................................... 219



Objective

To ensure that the South Australian public sector is accountable in both policy and financial terms to the government of the day through providing economic and financial services to, and on behalf of, the Government of South Australia. Treasury and Finance provides key services to other government agencies and the community, including improving safety in South Australian workplaces, industrial relations services and corporate, business and procurement services.



The Hon. RI Lucas Treasurer

1. Accountability for Public SectorResources

Nil

2. Treasury Services 2.1 Revenue Collection and Management

2.2 Treasury, Insurance and Fleet Services

2.3 Superannuation Services 3. Industrial Relations 3.1 Industrial Relations

3.2 SafeWork SA 3.3 South Australian Employment

Tribunal 4. Government Services 4.1 Shared Services

4.2 Whole of Government Procurement

4.3 Electorate Services

Administered items

In addition to the above responsibilities, the agency administers the following items on behalf of the Treasurer:

• Assets and liabilities held on behalf of the state by the Treasurer

• Consolidated Account items

• Special Acts for judicial salaries and allowances

• Special deposit accounts.

Statutes



2018–19 Budget

Cost of provision

Minister $000 FTE

The Hon. RI Lucas ................................................................................. 2 440 15.0



Workforce summary

FTEs as at 30 June

Agency 2018–19 Budget(a)

2017–18 Estimated


Department of Treasury and Finance ..................................................... 1 471.3 1 757.6 1 565.8

Administered items for the Department of Treasury and Finance ............ 216.7 216.7 206.0

Total 1 688.0 1 974.3 1 771.8



Compulsory Third Party Insurance Regulator to Treasury and Finance Administered Items (Other Accounts) from 1 July 2018 ........ — 33.6 31.6

Veterans' Affairs to the Department of the Premier and Cabinet from 1 July 2018 ......................................................................................... — 7.8 7.8

Office of the Valuer-General to the Department of Planning, Transport and Infrastructure from 1 July 2018 .................................... — 41.5 —

Office of the Registrar-General to the Department of Planning, Transport and Infrastructure from 1 July 2018 .................................... — 12.3 —


Economics Unit from the Department of the Premier and Cabinet from 1 July 2018 ................................................................................. — 6.2 5.0

Electorate Services from the Department of the Premier and Cabinet from 1 July 2018 ................................................................................. — 42.9 59.4

End User Computing from the Department of the Premier and Cabinet from 1 July 2018 .................................................................... — 36.2 16.4

Industrial Relations from the Department of the Premier and Cabinet from 1 July 2018 ................................................................................. — 16.5 8.5

Return to Work Services from the Department of the Premier and Cabinet from 1 July 2018 .................................................................... — 14.5 13.1

SafeWork SA from the Attorney-General's Department from 1 July 2018 ......................................................................................... — 215.1 195.8

Shared Services SA from the Department of the Premier and Cabinet from 1 July 2018 .................................................................... — 647.9 557.7

South Australian Employment Tribunal from the Attorney-General's Department from 1 October 2018 ....................................................... — 59.3 41.3

Whole of Government Procurement from the Department of the Premier and Cabinet from 1 July 2018 ............................................... — 64.2 54.7

Equals: data published by the Office for the Public Sector (Department of the Premier and Cabinet) 1 688.0 966.7 859.3







2018–19 Budget

2017–18 Estimated


2016–17 Actual

Program $000 $000 $000 $000

1. Accountability for Public Sector Resources ............ 29 110 38 280 25 045 31 648

2. Treasury Services ................................................... 33 614 29 323 35 778 27 164

3. Industrial Relations ................................................. 9 903 12 930 13 803 12 062

4. Government Services ............................................. 80 714 79 359 78 345 -5 464

Total 153 341 159 892 152 971 65 410

Reconciliation to agency net cost of providing services


Compulsory Third Party Insurance Regulator to Treasury and Finance Administered Items (Other Accounts) from 1 July 2018 ........................................ — 1 931 1 475 -802

Office of the Registrar-General to the Department of Planning, Transport and Infrastructure from 1 July 2018 ................................................................. — 39 064 — —

Office of the Valuer-General to the Department of Planning, Transport and Infrastructure from 1 July 2018 ................................................................. — 6 594 5 023 137

Veterans' Affairs to the Department of the Premier and Cabinet from 1 July 2018 ..................................... — 1 962 1 488 1 886

Less: Net costs transferred in:

Economics Unit from the Department of the Premier and Cabinet from 1 July 2018 ..................................... — 1 121 1 578 801

Electorate Services from the Department of the Premier and Cabinet from 1 July 2018 ....................... — 7 657 7 652 6 797

End User Computing from the Department of the Premier and Cabinet from 1 July 2018 ....................... — 5 042 5 083 3 547

Industrial Relations from the Department of the Premier and Cabinet from 1 July 2018 ....................... — 1 961 1 961 1 234

Return to Work Services from the Department of the Premier and Cabinet from 1 July 2018 ....................... — -205 -205 -70

SafeWork SA from the Attorney-General's Department from 1 July 2018 ..................................... — 8 365 9 242 8 100

Shared Services SA from the Department of the Premier and Cabinet from 1 July 2018 ....................... — 64 555 63 742 -17 957

South Australian Employment Tribunal from the Attorney-General's Department from 1 October 2018 — 2 605 2 600 2 727

Whole of Government Procurement from the Department of the Premier and Cabinet from 1 July 2018 ................................................................. — 2 310 2 073 803




Key agency outputs

• Provide policy, economic and financial advice to, and on behalf of, the Government of South Australia.

• Coordinate resource allocations for government programs and priorities at the whole of government level to ensure accountability for public sector resources.

• Support the Treasurer in producing the State Budget.

• Provide corporate and business services in the areas of payroll, accounts payable, accounts receivable and financial services so that all South Australian government departments can focus on their core business operations.

• Provide support to the government through delivering a range of key projects for the economic benefit of the state.

• Provide across government contracts for goods, services and information communications technology, specialist procurement advice and support to the State Procurement Board.

• Provide financial services to the community, covering asset and liability management, collection of state taxes, insurance and superannuation.

• Provide work health and safety services across South Australia.

• Deliver support services to members of parliament to assist them in meeting their responsibilities to the parliament and the broader community.

• Deliver public sector industrial relations policy and support, including efficient and cost-effective processes for the resolution of workplace-related disputes and issues.



This program provides for ongoing maintenance and improvement of systems and capabilities to deliver high quality services to government.

Estimated

completion

Total project


2017–18 Estimated



Existing projects Budget and monitoring system upgrade . Jun 2018 850 — 87 87 National Register of Foreign Ownership of Land titles ......................... Jun 2018 1 503 — 1 199 670 Shared Services — Masterpiece System Jun 2022 3 236 1 578 — — Super SA ICT System Solution............... Jun 2018 13 374 — 5 523 1 669 Wagering Tax Administration System ..... Jun 2018 507 — 218 100 Total existing projects 19 470 1 578 7 027 2 526

Annual programs Minor capital works and equipment ........ n.a. n.a. 1 852 6 876 2 879 RevenueSA Information On-line system (RIO) .......................................... n.a. n.a. 3 617 2 198 534 Total annual programs n.a. 5 469 9 074 3 413




Program 1: Accountability for Public Sector Resources


Treasury and Finance has the role of ensuring accountability for public sector resources through providing policy, economic and financial advice to the government and coordinating resource allocations for government programs and priorities at the whole of government level.

Treasury and Finance provides support to the government through delivering a range of key projects aimed at maximising commercial outcomes for government. These projects progress policy reforms and commercial initiatives for the economic benefit of the state.


• Produced and published the consolidated Government of South Australia financial statements for 2016–17, the 2017–18 Mid-Year Budget Review (MYBR) and commenced the 2018–19 Budget.

• Prepared advice to inform the incoming government in relation to the state's fiscal position and outlook.

• Prepared advice for the government in relation to the Productivity Commission’s Inquiry into Australia’s System of Horizontal Fiscal Equalisation and the Commonwealth Grants Commission’s 2020 Methodology Review.

• Commenced work on simplification of the Treasurer’s Instructions to increase agility in government decision making while maintaining a strong governance framework.

• Managed the Motor Accident Commission (MAC) Fund as delegated by MAC in order to maximise value.

• Completed the transition of Domiciliary Care services from the Department of Human Services to the non-government sector.

• Finalised the contractual arrangements for the commercialisation of a range of transactional land services and functions previously delivered by the Department of Planning, Transport and Infrastructure and commenced providing transitional support services with the new service provider.

• Implemented the update of the Australian System of Government Financial Statistics: Concepts, Sources and Methods, including the classification of the Function of Government Reporting.

• Assisted in finalising negotiations with the Commonwealth Government for a new National Housing and Homelessness Agreement, a Bilateral Agreement on the National Disability Insurance Scheme and a National Partnership Agreement on Skilling Australians Fund.

• Provided advice on Commonwealth legislative reforms to education funding.

• Achieved certification of the South Australian Water Access Regime.

Targets 2018–19

• Produce and publish the consolidated Government of South Australia financial statements for 2017–18, the 2018–19 Budget, the 2018–19 MYBR and the 2019–20 Budget.

• Negotiate a new funding agreement with the Commonwealth Government for remote Indigenous housing.

• Assess opportunities to enhance the efficiency and quality of government services by growing private sector delivery.

• Manage the state’s obligation under the exclusive right to negotiate to assess the potential for private sector delivery of the state’s motor registration and driver licencing registry.



• Assess and lead delivery of complex transactions working with client agencies, including throughthe use of innovative commercial structures and financing approaches.

• Assist in the negotiation of a new National Healthcare Agreement between the states and theCommonwealth Government.

• Negotiate a new agreement with the Commonwealth Government for education funding.

• Finalise the simplification of the Treasurer’s Instructions to increase agility in government decisionmaking whilst maintaining a strong governance framework.

• Prepare for the commencement of major changes to the Australian Accounting Standards,including assessing the impact of the new standards at a whole of government level anddetermining the changes required to the Accounting Policy Statements.

• Lead the delivery of new birth to Year 12 education facilities to be built under a public privatepartnership in the Munno Para region and Sellicks Beach/Aldinga region in close collaborationwith the Department for Education.

• Assist the government to implement its new energy solution.

• Provide support to the independent inquiry into water pricing in South Australia.


2018–19 Budget

2017–18 Estimated


2016–17 Actual

$000 $000 $000 $000

Expenses Employee benefit expenses........................................... 17 897 22 872 17 466 18 395 Supplies and services .................................................... 12 135 14 962 6 610 14 874 Depreciation and amortisation expenses ....................... 215 750 461 298 Grants and subsidies ..................................................... 183 179 179 63 Intra-government transfers ............................................ 396 1 030 223 1 459 Other expenses ............................................................. 372 1 081 908 124 Total expenses 31 198 40 874 25 847 35 213 Income Intra-government transfers ............................................ 358 391 333 373 Other grants................................................................... — — — 3 Sales of goods and services .......................................... 224 252 386 1 200 Other income ................................................................ 1 506 1 951 83 1 989 Total income 2 088 2 594 802 3 565 Net cost of providing services 29 110 38 280 25 045 31 648 FTEs as at 30 June (No.) 134.6 176.6 149.8 151.6


The decrease in the 2018–19 Budget for expenses compared to the 2017–18 Estimated Result is primarily due to lower expenditure relating to the:

• Land Services Commercialisation project ($10.0 million)

• Compulsory Third Party Insurance Market reform project ($2.6 million)

partially offset by an increase in expenditure relating to the:

• implementation of the National Disability Insurance Scheme and Aged Care Reforms($1.6 million)



• Public Private Partnership schools project ($1.0 million)

• SA Water pricing enquiry ($1.0 million).

The increase in the 2017–18 Estimated Result for expenses compared to the 2017–18 Budget is primarily due to additional expenditure provided for the:

• Land Services Commercialisation project ($12.0 million)

• Compulsory Third Party Insurance Market reform project ($2.6 million)

• Public Private Partnership schools project ($1.5 million).

The increase in the 2017–18 Estimated Result for income compared to the 2017–18 Budget is primarily due to cost recoveries associated with the Land Services Commercialisation project ($1.9 million).



Program 2: Treasury Services


Management of the government’s financial assets and liabilities and provision of certainty of funding to the state.

Sub-programs

2.1 Revenue Collection and Management

2.2 Treasury, Insurance and Fleet Services

2.3 Superannuation Services


2018–19 Budget

2017–18 Estimated


2016–17 Actual

$000 $000 $000 $000

Expenses Employee benefit expenses......................................... 39 267 46 289 41 348 43 874 Supplies and services .................................................. 32 076 28 246 31 210 28 026 Depreciation and amortisation expenses ..................... 4 311 3 455 3 972 2 952 Grants and subsidies ................................................... — — — 8 Intra-government transfers .......................................... 525 1 404 2 469 1 694 Other expenses ........................................................... 535 1 433 1 357 561 Total expenses 76 714 80 827 80 356 77 115

Income Intra-government transfers .......................................... — — — 1 200 Fees, fines and penalties ............................................. 313 297 527 428 Sales of goods and services ........................................ 42 787 51 207 44 051 46 180 Other income ............................................................... — — — 2 143 Total income 43 100 51 504 44 578 49 951


FTEs as at 30 June (No.) 427.8 484.4 483.2 467.2



Sub-program 2.1: Revenue Collection and Management


Administration of taxation legislation through the management of revenue and compliance systems, processes, policy advice and taxpayer education to enable the government to raise revenue. RevenueSA also manages various grants and subsidy schemes for the government.


• Implemented legislative and administrative tax changes, including the conveyance duty surcharge on foreign buyers of residential property, the off-the-plan apartment assistance and stamp duty relating to the closure of the Federal Interstate Registration Scheme.

• Implemented measures to support the abolition of stamp duty on the transfer of non-residential, non-primary production property and on the transfer of units in a unit trust.

• Reviewed the taxpayer experience and developed a transformation plan to modernise service delivery, including providing more digital options and simplified services.

• Administered 4800 Job Accelerator Grant Scheme payments.

• Implemented electronic lodgement for insurance stamp duty and the new tax on the net wagering revenue of Australian-based betting companies offering services to South Australia.

• Continued to implement comprehensive risk based compliance and debt management programs to ensure the protection of state revenue.

Targets 2018–19

• Implement legislative, administrative and system changes relating to the payroll tax reduction for small businesses from 1 January 2019.

• Fully implement system changes to reflect a reduction to Emergency Service Levy bills by $90 million per annum.

• Increase electronic lodgement of taxpayer obligations and management of grant applications through RevenueSA online.

• Implement an enhanced education program and deliver easier to understand taxation and grant information to improve taxpayers’ understanding of their obligations.

• Implement further measures to modernise service delivery.

2018–19 Budget

2017–18 Estimated


2016–17 Actual

$000 $000 $000 $000 Expenses ..................................................................... 39 720 45 321 43 629 44 164 Income ......................................................................... 7 379 7 233 7 722 8 881 Net cost of sub-program 32 341 38 088 35 907 35 283

FTEs as at 30 June (No.) 196.1 232.3 222.4 221.7




The decrease in the 2018–19 Budget for expenses compared to the 2017–18 Estimated Result is primarily due to a decrease in the corporate overhead allocation attributable to this program ($4.3 million).

The decrease in the 2017–18 Estimated Result for income compared to the 2016–17 Actual is due to a once-off recovery in 2016–17 from the Commonwealth Government for the system build costs of the National Register of Foreign Ownership of Land Titles ($1.2 million).


2018–19 Target

2017–18 Estimated

Result 2017–18

Target 2016–17

Actual Revenue resulting from compliance initiatives Higher collection in the 2016–17 Actual result is primarily due to the end of the targeted stamp duty life insurance program.

$60.0m $67.7m $56.3m $95.2m

% of revenue banked on day of receipt >97.0% 97.6% >97.0% 96.9% Cost for administration per $100 tax Methodology changed from previous year to incorporate RIO system support costs from 2016–17.

<65 cents 61 cents <65 cents 64 cents

Percentage of collections received electronically

New indicator for 2018–19. Excludes the Emergency Services Levy. 85% 83.4% n.a. 79.4%

Percentage of payments made electronically

New indicator for 2018–19. Excludes the Emergency Services Levy. 85% 82.7% n.a. 72.4%

Activity indicators

2018–19 Projection

2017–18 Estimated

Result 2017–18


Actual Taxation revenue collected by RevenueSA $3.6b $3.6b $3.6b $3.7b Grants and administered payments managed by RevenueSA Includes the Job Accelerator Grant from the 2017–18 Projection. New indicator.

$82.5m $78.9m n.a. $57.6m

Sub-program 2.2: Treasury, Insurance and Fleet Services


The objectives of this sub-program include:

• management of the government’s financial assets and liabilities and provision of certainty offunding to the state

• insurance cover to government agencies through the insurance and reinsurance of government risks

• advice to the government on issues relating to insurance and the management of risks

• provision of fleet management services to agencies and vehicle disposal services to government.


• Continued to broaden the South Australian Government Financing Authority’s (SAFA) profileand penetration with investors to enable cost-effective refinancing of existing short and long-termdebt.

• Renewed the government’s catastrophe reinsurance program on favourable terms.

• Increased the number of low emission vehicles in the government’s fleet.



Targets 2018–19

• Continue to broaden SAFA’s profile and penetration with investors to enable cost-effective refinancing of existing short and long-term debt.

• Broaden SAFA’s management of industry financial assistance to provide an expanded due-diligence, commercial advisory and contract management service across government.

• Complete the vehicle management and vehicle disposal contract negotiations.

2018–19 Budget

2017–18 Estimated


2016–17 Actual

$000 $000 $000 $000 Expenses ..................................................................... 13 298 13 326 14 689 13 124 Income ......................................................................... 13 245 14 733 13 939 13 124 Net cost of sub-program 53 -1 407 750 —

FTEs as at 30 June (No.) 82.0 91.9 86.2 84.5


The decrease in the 2017–18 Estimated Result for expenses compared to the 2017–18 Budget is primarily due to a reclassification of operating expenditure to capital for an office fit-out project ($0.5 million).

The increase in the 2017–18 Estimated Result for income compared to the 2017–18 Budget is primarily due to higher cost recoveries associated with SAFA capital projects ($0.9 million).


2018–19

Target

2017–18 Estimated

Result 2017–18

Target 2016–17

Actual

% of debt financing demands of the state and its instrumentalities met during year

100% 100% 100% 100%

% of clients satisfied with the SAFA services — assessed on timeliness, cost effectiveness and flexibility in service delivery

90% 100% 90% 100%

Eligible clients issued with agency agreements 100% 100% 100% 100% Comprehensive government catastrophe reinsurance program at a competitive market price

Selected catastrophic

risks covered at competitive market prices


risks covered at competitive market prices


risks covered at competitive

market prices


risks covered at competitive

market prices Operating expense per $100 premium revenue $4.95 $5.29 $4.74 $5.03 % of low emission vehicles in Government Fleet 28% 23% 20% 12%

Activity indicators

2018–19

Projection

2017–18 Estimated

Result 2017–18


Actual No. of new vehicles purchased 2 393 2 415 2 700 2 015 No. of vehicles disposed of 2 573 2 480 2 700 1 981



Sub-program 2.3: Superannuation Services


The objectives of this sub-program are to:

• administer the various public sector superannuation schemes for the South AustralianSuperannuation Board and the Southern Select Super Corporation, as well as the superannuationarrangements for parliamentarians, judges and former governors

• provide superannuation policy and legislative advice to the South Australian SuperannuationBoard, the Southern Select Super Corporation, the Chief Executive and the Treasurer.


• Completed implementation of phase 1 of the next generation commercial administration system,with accompanying electronic document and workflow management capabilities.

• Implemented approved changes to insurance products.

• Finalised legislative changes related to the early release of superannuation on compassionate andhardship grounds.

Targets 2018–19

• Introduce new insurance products including death and total permanent disablement (TPD) andincome protection (IP).

• Introduce the early release of superannuation on compassionate and hardship grounds.

2018–19 Budget

2017–18 Estimated


2016–17 Actual

$000 $000 $000 $000 Expenses ..................................................................... 23 696 22 180 22 038 19 827 Income ......................................................................... 22 476 29 538 22 917 27 946 Net cost of sub-program 1 220 -7 358 -879 -8 119 FTEs as at 30 June (No.) 149.7 160.2 174.6 161.0


The increase in the 2018–19 Budget for expenses compared to the 2017–18 Estimated Result is primarily due to an increase in depreciation on the Super SA ICT System Solution project ($1.3 million).

The increase in the 2017–18 Estimated Result for income compared to the 2017–18 Budget is primarily due to higher cost recoveries associated with Super SA capital projects ($5.7 million).




2018–19

Target

2017–18 Estimated

Result 2017–18

Target 2016–17

Actual

Achievement of approved service level standards by 30 June each year The 2017–18 Estimated Result, based on year to date March 2018 quarter data, is not yet available to transition to the new administration system on 7 May 2018.

95% 81% 95% 95%

Issue member statements by 31 August Member statements will be delayed as a result of the implementation of the new administration system. The majority of 2017–18 member statements will be issued throughout September and October 2018.

98% Not achieved 98% 98%

No. of days to issue superannuant payment summaries from 1 July

14 14 14 14

Benchmarking of administrative costs with industry standards – remain in the most cost efficient quartile of industry standards while providing additional services to members

Remain in the most cost

efficient quartile


efficient quartile


efficient quartile


efficient quartile

Activity indicators

2018–19

Projection

2017–18 Estimated

Result 2017–18


Actual No. of contributors/members in state schemes: • Members • Triple S Scheme contributors

217 400 29 210

216 000 29 210

212 000 29 200

212 600 29 690



Program 3: Industrial Relations


Provision of services to ensure the rights and obligations of employees and employers are protected and the relevant law applied to prevent and resolve workplace disputes.

Sub-programs

3.1 Industrial Relations

3.2 SafeWork SA

3.3 South Australian Employment Tribunal


2018–19 Budget

2017–18 Estimated


2016–17 Actual

$000 $000 $000 $000

Expenses Employee benefit expenses......................................... 26 173 32 289 31 912 28 158 Supplies and services .................................................. 15 581 15 484 16 005 14 704 Depreciation and amortisation expenses ..................... 1 108 994 994 806 Grants and subsidies ................................................... 1 857 1 749 2 332 1 245 Intra-government transfers .......................................... 507 5 5 — Other expenses ........................................................... 516 11 38 372 Total expenses 45 742 50 532 51 286 45 285 Income Commonwealth revenues ............................................ — 78 118 132 Intra-government transfers .......................................... — 860 754 169 Fees, fines and penalties ............................................. 28 055 26 413 26 413 24 100 Sales of goods and services ........................................ 7 066 9 297 9 197 7 944 Interest revenues ......................................................... — — — 1 Net gain or loss on disposal of assets ......................... — — — -16 Other income ............................................................... 718 954 1 001 893 Total income 35 839 37 602 37 483 33 223 Net cost of providing services 9 903 12 930 13 803 12 062 FTEs as at 30 June (No.) 233.8 290.9 290.7 245.6



Sub-program 3.1: Industrial Relations


The Industrial Relations and Policy Branch has overall responsibility for managing industrial relations in the public sector. In particular, it leads and manages enterprise bargaining negotiations and manages the conduct of employment-related litigation.


• Supported the statutory role of the Commissioner for Public Sector Employment through determinations and guidelines and the standardisation of employment arrangements and conditions.

• Led and finalised the negotiation of a number of major enterprise bargaining agreements, managed public sector industrial dispute notifications, monetary claims and other employment-related litigation.

• Continued to build industrial relations knowledge and skills across the public sector.

Targets 2018–19

• Lead the negotiation of expiring public sector enterprise agreements.

• Manage public sector dispute notifications, monetary claims and other employment-related litigation. Where appropriate, explore opportunities for the constructive resolution of disputes without the need for litigation.

• Continue to build industrial relations knowledge and skills across the public sector.

Targets 2018–19 — for the Office of the Commissioner for Public Sector Employment, which is separately reported in Treasury and Finance Administered Items (Other Accounts) and not reflected within the below sub-program financial table or commentary.

• Reform the public sector through enhanced governance and human resource management.

• Strengthen the process for the delivery of merit based executive appointments across the public sector.

• Continue to implement transparent and accountable performance management and the development of the executive group across the public sector.

• Provide evidence based whole of sector strategic workforce planning.

2018–19 Budget

2017–18 Estimated


2016–17 Actual


FTEs as at 30 June (No.) 13.6 16.5 16.5 8.5





Subprogram 3.2: SafeWork SA


Provision of work health and safety and industrial relations education and compliance services to promote safe, fair, productive working lives and high standards of public safety for all South Australians.


• Maintained the work injury reduction trend in South Australia.

• Met increased demand for education services.

• Provided consistent and practical services to support businesses and workers to improve work health and safety and industrial relations outcomes.

Targets 2018–19

• Maintain the work injury reduction trend in South Australia.

• Provide consistent and practical services to support businesses and workers to improve work health and safety and industrial relations outcomes, including making it easier for people to engage with SafeWork SA and taking firm and fair action in the case of non-compliance.

• Respond to the evaluation of SafeWork SA conducted by the Independent Commissioner Against Corruption.

2018–19 Budget

2017–18 Estimated


2016–17 Actual


FTEs as at 30 June (No.) 174.0 215.1 218.0 195.8


The decrease in the 2018–19 Budget for expenses compared to the 2017–18 Estimated Result is primarily due to efficiency savings measures ($1.3 million).

The decrease in the 2017–18 Estimated Result for expenses compared to the 2017–18 Budget is primarily due to reduced grant expenditure ($0.8 million).

The increase in the 2017–18 Estimated Result for expenses compared to the 2016–17 Actual is primarily due to staff vacancies in 2016–17 and increased allocation of corporate overheads in 2017–18 ($3.3 million).

The increase in income since 2016–17 Actual is primarily due to higher activity levels associated with regulatory fees which are cyclical in nature ($2.9 million).




2018–19

Target

2017–18 Estimated

Result 2017–18

Target 2016–17

Actual

% of customer service telephone calls responded to in less than three minutes

90% 93% 90% 96%

% of complaints and notifications finalised within six months 85% 93% 85% 87%

Activity indicators

2018–19

Projection

2017–18 Estimated

Result 2017–18


Actual No. of compliance and enforcement visits

New indicator for 2018–19 combining the previous indicators of ‘No. of proactive compliance and enforcement visits’ and ‘No. of reactive compliance and enforcement visits’.

19 000 22 300 19 000 21 340

No. of education, engagement and support activities 35 000 38 000 22 000 24 330

Sub-program 3.3: South Australian Employment Tribunal


The South Australian Employment Tribunal (SAET) is established under the South Australian Employment Tribunal Act 2014.

SAET initially had jurisdiction to review certain decisions under the Return to Work Act 2014. SAET provides efficient and cost-effective processes for the resolution of disputes, acts with as little formality and technicality as possible and is flexible in the way in which it conducts its business.

From 1 July 2017, SAET assumed an expanded jurisdiction to include the:

• Industrial Relations Court and Commission

• District Court in regards to the Dust Diseases Act 2005

• Criminal jurisdiction of Magistrates Court in respect of ‘industrial offences’

• Magistrates, District and Supreme Courts in regards to Common law employment contract

• Teachers Appeal Board and Classification Review (Panels)

• Equal Opportunity Tribunal (termination and transfer matters only)

• Police Review Tribunal

• Public Sector Grievance Review Commission.

SAET will transfer from the Attorney-General’s Department on 1 October 2018.


• Transitioned new jurisdictions with minimal disruption and inconvenience to users.

• Introduced improved processes and case management of new application types arising from the jurisdictional expansion.

• Continued to improve the effectiveness and efficiency of dispute resolution by embedding the continuous improvement approach into all aspects of operations.

• Transitioned the operations of the Industrial Relations Court and Commission into SAET effective 1 July 2017.



Targets 2018–19

• Implement a new case management system that includes an electronic portal for improved customer access to SAET and improved data reporting capabilities.

• Introduce a process for gathering feedback from SAET users in order to measure and improve processes and quality of service.

• Consider the recommendations arising from the independent review of the Return to Work Act 2014, which was completed in June 2018.

2018–19

Budget(a)

2017–18 Estimated


2016–17 Actual


FTEs as at 30 June (No.) 46.2 59.3 56.2 41.3

(a) The South Australian Employment Tribunal will transfer to Treasury and Finance effective on 1 October 2018. As a result, this agency statement reflects nine months of program income and expenses in the 2018–19 Budget. The Attorney-General’s Department reflects three months of program income and expenses. Previous year comparatives reflect the full twelve month amounts.


The decrease in the 2018–19 Budget for expenses and income compared to the 2017–18 Estimated Result reflects a part year budget associated with the transfer of SAET from the Attorney-General’s Department on 1 October 2018.


2018–19

Target

2017–18 Estimated

Result 2017–18

Target 2016–17

Actual Average time from lodgement to resolution in conciliation: • applications for review <12 weeks 10 weeks <12 weeks 9 weeks • expedited applications <3 weeks 2.5 weeks <3 weeks 2 weeks Average time from lodgement to decision A significant number of applications are awaiting the outcome of cases on appeal to the full-bench of SAET and the full Supreme Court. The appeals are regarding the interpretation of various provisions of the Return to Work Act 2014. This is impacting on the average time to decision as the cases cannot be heard and decided until the interpretation issues are resolved.

<52 weeks 55 weeks <26 weeks 31 weeks

% of matters resolved within 12 months of lodgement 85% 92% 80% 85%

Activity indicators

2018–19

Projection

2017–18 Estimated

Result 2017–18


Actual No. of applications lodged 5 400 5 922 5 300 5 924 No. of Licensing Court matters lodged 180 176 180 159 No. of SA Health Practitioner Tribunal matters 42 42 35 43



Program 4: Government Services


Provision of a comprehensive range of services to various government agencies and the community.

Sub-programs

4.1 Shared Services

4.2 Whole of Government Procurement

4.3 Electorate Services


2018–19 Budget

2017–18 Estimated


2016–17 Actual

$000 $000 $000 $000

Expenses Employee benefit expenses......................................... 65 367 71 366 70 727 60 594 Supplies and services .................................................. 23 991 24 146 22 530 31 560 Depreciation and amortisation expenses ..................... 2 064 990 1 005 879 Grants and subsidies ................................................... — — — 133 Intra-government transfers .......................................... 2 097 — — — Other expenses ........................................................... 1 849 — — 140 Total expenses 95 368 96 502 94 262 93 306 Income Other grants................................................................. — 1 747 1 747 — Sales of goods and services ........................................ 14 212 11 207 10 423 98 248 Other income ............................................................... 442 4 189 3 747 522 Total income 14 654 17 143 15 917 98 770 Net cost of providing services 80 714 79 359 78 345 -5 464 FTEs as at 30 June (No.) 675.1 805.7 800.5 701.4



Sub-program 4.1: Shared Services


Delivery of corporate services to various government agencies in the areas of accounts payable, accounts receivable, payroll, work injury services and finance, enabling agencies to focus on their core business operations.


• Completed implementation of the CHRIS 21 Human Resource Management System for South Australia Police, TAFE SA and Renewal SA.

• Successfully relocated accounts payable, accounts receivable and certain finance functions to a new modern work environment at Port Adelaide.

• Reduced paper consumption and storage by more than 2.5 million pages per annum.

• Delivered an efficient and timely early intervention program and return to work activities to assist injured employees to return to work successfully.

Targets 2018–19

• Implement an electronic forms solution to streamline current human resources administrative processes.

• Work with the Department of Health and Wellbeing to increase the number of staff electronically rostered and paid via the ProAct system, significantly reducing the need for the submission of manual timesheets and leave requests.

• Rollout a standardised policy and process for Goods and Services Tax and Fringe Benefits Tax sampling and reporting across government agencies.

• Coordinate the system and process changes required to implement the government’s commitment to automatically pay interest to businesses on overdue invoices.

• Continue to deliver an effective and efficient claims and return to work model for workers compensation cases managed by work injury services, including the development of return to work plans assisting agencies to identify suitable employment opportunities for injured employees.

2018–19 Budget

2017–18 Estimated


2016–17 Actual

$000 $000 $000 $000 Expenses ..................................................................... 76 146 74 643 72 605 74 433 Income ......................................................................... 7 560 10 293 9 068 92 460 Net cost of sub-program 68 586 64 350 63 537 -18 027

FTEs as at 30 June (No.) 568.5 662.4 657.9 570.9


The increase in the 2017–18 Estimated Result for expenses compared to the 2017–18 Budget is primarily due to a carryover from 2016–17 for the CHRIS 21 payroll reform project which was finalised in 2017–18 ($1.4 million).



The decrease in the 2017–18 Estimated Result for income compared to the 2016–17 Actual is primarily due to the cessation of Shared Services SA charging arrangements effective 1 July 2017 ($87.9 million), partially offset by:

• transfer of the Port Adelaide building fit-out from DPTI ($3.7 million)

• reinstatement of the NRM Board invoicing ($1.1 million) in 2017–18.

The decrease in the 2018–19 Budget for income is primarily due to the Port Adelaide building fit-out in 2017–18 ($3.7 million).

Sub-program 4.2: Whole of Government Procurement


Provision of across government contracts for goods, services and information communications technology to deliver financial savings to government, the provision of specialist procurement advice and assistance to agencies, support to the State Procurement Board and the delivery of community benefits through the support of locally based businesses.


• Delivered procurement projects in support of the state’s energy plan, including the procurement of temporary generation assets, grid connected storage battery, retail offer for energy concessions customers and contracting the state’s electricity requirements.

• Delivered savings in excess of $80 million through the negotiation and renegotiation of contract rates on across government contracts.

• Released the new SA Tenders and Contracts website.

• Delivered a simple online procurement tool to streamline the approvals process for low-value procurements.

• Delivered new master licence agreements for commonly used software systems.

Targets 2018–19

• Continue to deliver cost efficiencies in relation to the delivery of procurement services.

• Deliver targeted training opportunities and other strategies to improve the procurement capability across government.

• Deliver a new across government contract for professional services.

• Deliver the next round of State Procurement Board accreditation and assurance programs.

2018–19 Budget

2017–18 Estimated


2016–17 Actual


FTEs as at 30 June (No.) 64.9 100.4 99.6 71.1




The increase in the 2017–18 Estimated Result for expenses compared to the 2018–19 Budget and 2016–17 Actual is primarily due the once-off temporary resources employed in 2017–18 for the implementation of the end user computing project.

Sub-program 4.3: Electorate Services


Provision of support services to members of parliament to assist them in meeting their responsibilities to the parliament and the broader community.


• Transitioned members of parliament, their support staff and resources in line with the March 2018 State Election outcome.

• Delivered a suite of new and revised work health and safety policies to support a safe workplace for assistants to members of parliament.

• Implemented an online training portal for staff employed in the offices of members of parliament throughout South Australia.

Targets 2018–19

• Represent the Government of South Australia as the employer in the renegotiation of the enterprise agreement assistants to the members of the South Australian Parliament Enterprise Agreement.

• Continue to deliver electorate office relocations in line with the outcome of the 2016 Electoral Districts Boundaries Commission redistribution of electoral boundaries.

• Continue to investigate and implement the use of digital technologies to streamline paper-based administrative functions.

2018–19 Budget

2017–18 Estimated


2016–17 Actual


FTEs as at 30 June (No.) 41.7 42.9 43.0 59.4





Treasury and FinanceStatement of comprehensive income

2018–19Budget

2017–18Estimated

Result

2017–18Budget

2016–17

Actual$000 $000 $000 $000


Salaries, wages, annual and sick leave............................. 124 712 67 156 60 268 53 689Long service leave............................................................. 3 136 1 770 1 519 1 737Payroll tax.......................................................................... 5 294 2 347 2 215 3 075Superannuation.................................................................. 11 528 6 841 5 960 6 636Other.................................................................................. 4 034 1 130 2 565 2 186

Supplies and servicesGeneral supplies and services........................................... 76 779 104 980 47 685 42 479Consultancy expenses....................................................... 6 600 5 626 2 141 3 840

Depreciation and amortisation.............................................. 7 698 5 365 5 114 3 870Borrowing costs.................................................................... 404 404 404 —Grants and subsidies............................................................ 2 040 462 462 156Intra government transfers.................................................... 3 525 3 357 3 244 3 835Other expenses..................................................................... 3 272 3 067 3 066 386

Total expenses 249 022 202 505 134 643 121 889

IncomeIntra-government transfers.................................................... 358 416 358 1 573Other grants.......................................................................... — 500 500 525Fees, fines and penalties...................................................... 28 368 20 753 14 377 428Sales of goods and services................................................. 64 289 60 904 52 094 54 899Net gain or loss on disposal of assets.................................. — — — -329Other income........................................................................ 2 666 3 900 83 4 144

Total income 95 681 86 473 67 412 61 240





Total comprehensive result -2 892 10 985 -498 11 786



Treasury and FinanceStatement of financial position

2018–19Budget

2017–18Estimated

Result

2017–18Budget

2016–17

Actual$000 $000 $000 $000

AssetsCurrent assetsCash and cash equivalents................................................... 23 401 25 070 9 173 20 346Receivables.......................................................................... 17 816 3 808 8 281 3 759


Non current assets

Land and improvements....................................................... 14 363 11 897 4 079 12 126Plant and equipment............................................................. 7 354 5 425 2 759 1 468Intangible assets................................................................... 43 837 44 641 40 708 37 633


Total assets 106 771 90 841 65 000 75 332



Short-term provisions............................................................ 520 220 201 215



Long service leave............................................................ 34 406 16 599 17 316 15 953Long-term provisions............................................................ 1 032 381 398 357Other non-current liabilities................................................... 180 — — —



Net assets 28 971 56 505 32 019 41 985

Equity

Contributed capital................................................................ 5 344 5 344 5 344 1 809Retained earnings................................................................. 23 627 51 161 26 675 40 176

Total equity 28 971 56 505 32 019 41 985




Treasury and FinanceStatement of cash flows

2018–19Budget

2017–18Estimated

Result

2017–18Budget

2016–17

Actual$000 $000 $000 $000

Operating activitiesCash outflowsEmployee benefit payments................................................... 147 755 78 287 71 570 66 434Payments for supplies and services...................................... 83 739 110 606 49 826 51 233Interest paid........................................................................... 404 404 404 —Grants and subsidies............................................................. 2 040 462 462 156Intra-government transfers..................................................... 3 525 3 357 3 244 3 835Other payments..................................................................... 3 133 2 931 2 930 —


Cash inflowsIntra-government transfers..................................................... 358 416 358 1 573Other grants........................................................................... — 500 500 525Fees, fines and penalties....................................................... 28 368 20 753 14 377 428Sales of goods and services.................................................. 64 219 60 834 52 024 63 825GST received......................................................................... — — — 3 008Other receipts........................................................................ 2 580 3 817 — 4 210


State governmentAppropriation.......................................................................... 150 449 116 509 66 733 59 565Other receipts........................................................................ — 10 508 — 12 870



Investing activitiesCash outflowsPurchase of property, plant and equipment........................... 1 985 4 929 919 3 820Purchase of intangibles.......................................................... 5 062 11 172 5 020 11 773



Financing activitiesCash inflowsCapital contributions from state government......................... — 3 535 3 535 1 262

Cash generated from financing activities — 3 535 3 535 1 262

Net cash provided by (+)/used in (-) financing activities — 3 535 3 535 1 262



Treasury and FinanceStatement of cash flows

2018–19Budget

2017–18Estimated


2016–17Actual

$000 $000 $000 $000Net increase (+)/decrease (-) in cash equivalents -1 669 4 724 3 152 10 015





Administered items for the Department of Treasury and Finance Statement of comprehensive income(a)

2018–19 Budget

2017–18 Estimated


2016–17 Actual

$000 $000 $000 $000 Expenses Employee benefit expenses

Salaries, wages, annual and sick leave ...................... 2 839 499 495 366 Revaluation of unfunded superannuation liability(b) ..... -301 400 -163 100 -256 900 -2 468 000

Supplies and services General supplies and services .................................... 41 860 45 079 69 660 48 412

Borrowing costs ................................................................ 642 475 615 102 633 295 593 296 Grants and subsidies ........................................................ 2 075 250 256 348 1 938 774 798 402 Intra-government transfers ............................................... 621 696 448 586 698 294 232 346 Other expenses ................................................................ 11 042 880 11 376 217 10 861 617 10 781 506 Total expenses 14 125 600 12 578 731 13 945 235 9 986 328

Income Taxation ............................................................................ 3 738 846 3 684 782 3 735 134 3 574 445 Tax equivalent revenues .................................................. 105 633 113 327 95 229 188 883 Commonwealth revenues ................................................. 7 100 195 6 682 740 6 610 840 6 282 125 Intra-government transfers ............................................... 18 786 110 748 16 788 13 155 Fees, fines and penalties .................................................. 155 089 229 719 155 224 132 400 Sales of goods and services ............................................. 204 198 198 — Interest revenues .............................................................. 154 006 122 778 122 647 80 913 Dividend income ............................................................... 219 451 201 890 184 480 238 100 Other income(c)(d) .............................................................. 48 463 1 951 012 46 601 263 830 Total income 11 540 673 13 097 194 10 967 141 10 773 851

State government Income

Appropriation............................................................... 1 787 461 1 562 806 1 788 931 1 453 363 Expenses

Cash alignment ........................................................... — 173 838 — 169 387 Investing receipts paid to the consolidated account(e) — 1 605 000 — —

Net income from/expenses to state government 1 787 461 -216 032 1 788 931 1 283 976

Net result -797 466 302 431 -1 189 163 2 071 499

(a) This statement reflects the aggregated transactions of the Department of Treasury and Finance Consolidated Accountitems and the Treasury and Finance Administered Items Account.

(b) The movement in the revaluation of the superannuation liability between the 2017–18 Estimated Result and the 2018–19Budget reflects a number of factors including the past service payment and higher projected earnings on superannuationassets.

(c) The 2018–19 Budget figures do not include the return of surplus cash held by agencies at 30 June 2017 to theConsolidated Account in accordance with the cash alignment policy.

(d) Includes revaluation income from initial asset recognition from appointing an exclusive service provider for land services.

(e) Reflects proceeds from appointing an exclusive service provider for land services.

Note: further discussions are ongoing with the Auditor-General on the treatment of the Land Services Commercialisation transaction. Advice from the Audtior-General has indicated that there may be a significant change from the current budget treatment (refer Chapter 1 of Budget Paper 3 for further information).



Administered items for the Department of Treasury and Finance Statement of financial position(a)

2018–19 Budget

2017–18 Estimated


2016–17 Actual

$000 $000 $000 $000

Assets Current assets

Cash and cash equivalents .............................................. 300 541 300 541 312 759 300 541 Receivables ...................................................................... 215 511 215 453 187 906 275 413 Total current assets 516 052 515 994 500 665 575 954

Non-current assets

Financial assets ................................................................ 7 040 657 6 442 252 6 403 329 6 200 445 Land and improvements ................................................... 515 515 557 515 Intangible assets ............................................................... 325 325 325 325

Total non-current assets 7 041 497 6 443 092 6 404 211 6 201 285

Total assets 7 557 549 6 959 086 6 904 876 6 777 239

Liabilities Current liabilities

Payables ........................................................................... 32 686 32 686 26 067 32 686 Short-term borrowings ...................................................... 8 089 609 7 369 929 8 168 620 6 564 485 Employee benefits

Superannuation........................................................... 422 600 406 300 443 100 426 000 Other current liabilities ...................................................... 55 682 55 682 33 700 10 982 Total current liabilities 8 600 577 7 864 597 8 671 487 7 034 153

Non-current liabilities

Long-term borrowings ....................................................... 4 812 010 3 747 261 4 272 766 4 477 324 Long-term employee benefits

Superannuation........................................................... 10 396 300 10 801 100 10 454 400 11 022 200 Total non-current liabilities 15 208 310 14 548 361 14 727 166 15 499 524

Total liabilities 23 808 887 22 412 958 23 398 653 22 533 677

Net assets -16 251 338 -15 453 872 -16 493 777 -15 756 438

Equity Retained earnings ............................................................ -16 251 338 -15 453 872 -16 493 777 -15 756 438 Total equity -16 251 338 -15 453 872 -16 493 777 -15 756 438

(a) This statement reflects the aggregated transactions of the Department of Treasury and Finance Consolidated Account Items and the Treasury and Finance Administered Items Account. The balances are reported as at 30 June end of period.



Administered items for the Department of Treasury and Finance Consolidated Account items Statement of cash flows

2018–19 Budget

2017–18 Estimated


2016–17 Actual

$000 $000 $000 $000

Operating activities Cash inflows

Taxation Betting operations tax .................................................... 37 300 32 400 30 000 — Contribution from Casino Operations ............................. 17 200 17 000 18 300 15 865 Contribution from SA Lotteries ....................................... 79 550 77 427 72 168 73 376 Land tax ......................................................................... 618 276 591 401 599 199 769 320 Commonwealth places mirror land tax(a) ........................ 1 400 1 300 1 500 1 247 Other taxes on property ................................................. — — — 40 Payroll tax ...................................................................... 1 475 692 1 462 502 1 398 205 1 380 410 Commonwealth places mirror payroll tax(a) .................... 26 200 25 600 24 500 24 149 Stamp duties .................................................................. 1 477 911 1 472 288 1 489 005 1550 699 Commonwealth places mirror stamp duties(a) ................ 269 268 268 768 South Australian major bank levy(b) — — 73 000 —

Commonwealth receipts Commonwealth general purpose grants

GST revenue grants ................................................. 6 887 200 6 419 200 6 302 600 5 920 240 Commonwealth specific purpose grants

Council of Australian Governments funding arrangements .............................................. 212 995 308 240 308 240 303 525

Interest receipts

Interest on investments .................................................. 152 545 121 269 120 849 77 533 Interest recoveries ......................................................... 1 461 1 509 1 798 1 145

Dividends and distributions Adelaide Cemeteries Authority

Income tax equivalent .............................................. 92 69 98 61 Adelaide Venue Management Corporation Dividend ....................................................................... 1 600 1 600 1 600 1 600

Income tax equivalent .............................................. — — — — Arrangements with private electricity entities

Local government rate equivalent ............................ 253 248 248 238 Department of Planning, Transport and Infrastructure

Income tax equivalent .............................................. 2 614 2 614 2 614 588 Local government rate equivalent ............................ 1 067 1 041 1 041 696

Flinders Ports Payment in lieu of other taxes .................................. 2 707 2 625 2 625 —

ForestrySA Dividend ....................................................................... — 5 962 5 962 3 571 Funds SA

Local government rate equivalent ............................ 239 233 233 243 Generation Lessor Corporation

Dividend ................................................................... — — — 2 900



2018–19 Budget

2017–18 Estimated


2016–17 Actual

$000 $000 $000 $000 HomeStart Finance

Dividend ................................................................... 7 801 19 104 6 510 7 115 Income tax equivalent .............................................. 5 572 2 034 4 650 5 161

Public Trustee Dividend ................................................................... 3 017 550 381 59 Income tax equivalent .............................................. 1 232 186 251 —

Renewal SA Dividend ................................................................... 7 305 9 194 13 853 2 058 Income tax equivalent .............................................. 3 630 3 224 3 178 — Local government rate equivalent ............................ 4 251 1 148 3 534 236

Return to Work Corporation of South Australia Income tax equivalent .............................................. 1 000 73 731 — —

South Australian Water Corporation Dividend ................................................................... 155 342 137 374 138 768 121 829 Income tax equivalent ............................................. 88 563 74 217 81 636 83 494 Local government rate equivalent ............................ 1 856 1 805 1 979 1 726

Scope Global Pty Ltd Income tax equivalent ............................................. 600 600 600 327

South Australian Government Employee Residential Properties

Dividend ................................................................... 1 706 1 706 1 706 — Income tax equivalent .............................................. 465 465 465 799

South Australian Government Financing Authority Dividend ................................................................... 42 680 26 400 15 700 23 050 Income tax equivalent .............................................. 12 000 47 510 10 380 13 752

West Beach Trust Income tax equivalent .............................................. 14 2 86 6

Other receipts Adelaide Oval Sublease Fee ......................................... 600 400 400 200 Department of Planning, Transport and Infrastructure ........................................................... 10 339 10 621 10 621 655 Essential Services Commission of South Australia ........ 13 711 13 356 13 356 12 917 Fire damage and insurance cost (SAICORP Fund 2)… — — — 7 200 Forfeited Bank Guarantee — Building Sale — — — 5 000 Guarantee fees .............................................................. 155 089 147 998 155 224 132 400 Government Banking Contract Rebate .......................... 1 836 1 136 1 136 — Housing Loan Redemption Fund ................................... — 11 581 — — Independent Gaming Corporation contribution to Gamblers Rehabilitation Fund........................................ 2 000 2 000 2 000 2 000 Land Services Regulatory Fees(c) ................................. — 81 598 — — Land Services Data Royalties ........................................ — 275 — — Metropolitan Drainage Fund .......................................... 7 7 7 7 National Tax Equivalent Program .................................. 50 50 50 — NRM Levy — Treasurer’s Water Licences ..................... 387 376 376 313 Off-course wagering services annual fee ....................... 1 170 1 150 — — Return of cash to Consolidated Account ― cash .......... — 316 405 — 243 178 Return of deposit account balances ............................... — — — 545 Return of deposit account balances — superannuation .............................................................. 30 000 — 30 000 —



2018–19 Budget

2017–18 Estimated


2016–17 Actual

$000 $000 $000 $000 Return to public sector employment — ETSA employees ..................................................................... — — — 1 629 Sundry fees .................................................................... 37 37 37 105 Sundry recoupment ........................................................ 2 528 961 961 361 Surplus from Consolidated Account ............................... — 93 960 — — Unclaimed monies ......................................................... 2 081 2 018 2018 2 653

Total receipts for Consolidated Account 11 553 440 11 627 975 10 953 916 10 796 989

Surplus from the Consolidated Account — 93 960 — —

Cash outflows

Employee benefit payments Judges .......................................................................... 2 455 — — — Minister's salary, electorate and expense allowance ..... 384 358 354 366 Valuer-General............................................................... — 141 141 200

Grants, subsidies and transfers First Home Owner Grants .............................................. 36 396 42 691 36 057 36 340 Payments to fund Consolidated Account ....................... 1 788 830 — 1 722 775 617 566

Total payments appropriated under various acts 39 235 43 190 36 552 36 906

Total payments funded by borrowings 1 788 830 — 1 722 775 617 566


Cash inflows Sale of property, plant and equipment

Proceeds from appointing an exclusive service provider for land services(d) ............................................ — 1 605 000 — —

Repayment of advances Administered items for the Department of Planning, Transport and Infrastructure .......................................... 209 209 209 302 Department for Health and Wellbeing ............................ 3 908 3 546 3 546 3 033 Department of Primary Industries and Regions ............. 1 000 5 790 1 000 16 207 Renmark Irrigation Trust ................................................ 83 79 79 154 Royal Zoological Society of South Australia .................. 275 263 263 251

Return of capital Adelaide Festival Centre Trust ....................................... — 10 697 — — Defence SA .................................................................... — 101 823 101 823 — South Australian Water Corporation .............................. — — 63 780 71 208

Total receipts for Consolidated Account 5 475 1 727 407 170 700 91 155


Cash inflows Borrowings

Borrowings to fund Consolidated Account ..................... 1 788 830 — 1 722 775 617 566 Other

Deposits with Treasurer ................................................. 719 680 805 571 1 830 650 1 282 471 Total borrowings 1 788 830 — 1 722 775 617 566

Total receipts re cash and deposits 719 680 805 571 1 830 650 1 282 471



2018–19 Budget

2017–18 Estimated


2016–17 Actual

$000 $000 $000 $000 Cash outflows Repayment of borrowings

South Australian Government Financing Authority ........ — 93 960 — — Other payments

Deposits with South Australian Government Financing Authority ......................................................................... 719 680 805 571 1 830 650 1 282 471

Total payments funded by Consolidated Account Surplus — 93 960 — —

Total payments re cash and deposits 719 680 805 571 1 830 650 1 282 471

Net impact on Consolidated Account 11 519 680 13 218 232 11 088 064 10 851 238

Net impact on cash and deposits — — — —

(a) Taxes akin to state taxes are levied on activities conducted on Commonwealth places under the authority of Commonwealth mirror tax legislation. Revenue is retained by the state.

(b) A South Australian major banking levy was to be introduced from 1 July 2017 but was not passed by the South Australian Parliament.

(c) Office of the Registrar-General transferred to the Department of Treasury and Finance on 1 February 2018 and then transferred to the Department of Transport, Planning and Infrastructure on 1 July 2018.

(d) Reflects proceeds from appointing an exclusive service provider for land services.



Administered items for the Department of Treasury and Finance Treasury and Finance Administered Items Account Statement of cash flows

2018–19 Budget

2017–18 Estimated


2016–17 Actual

$000 $000 $000 $000


Cash outflows

Employee benefit payments Past service superannuation payments ......................... 406 300 426 000 426 000 457 900 Police superannuation, guaranteed minimum retirement benefit ........................................................... 1 000 — 1 000 —

Payments for supplies and services Adelaide Festival Centre Trust Loan Forgiveness…….. — — — 1 332 National Tax Equivalent Program .................................. 60 60 60 2 Repayment of unclaimed monies ................................... 350 950 350 312 State share of GST administration costs ........................ 41 400 44 000 44 200 48 100

Interest paid Interest paid on deposit accounts and other monies ...... 27 405 20 727 24 523 22 671 Interest on borrowings ................................................... 295 870 246 075 245 572 218 392

Grants, subsidies and transfers Adelaide Oval Sublease Fee ......................................... 600 400 400 200 Adelaide Venue Management Corporation .................... 19 516 19 516 19 516 17 361 Building Indemnity Insurance ......................................... 891 3 713 1 356 2 309 Charitable and Social Welfare Fund .............................. 4 000 4 000 4 000 4 000 Community Development Fund...................................... 20 000 20 000 20 000 20 000 Community Support Grants and Donations(a) ................. 250 2 349 172 1 484 Community Wastewater Management Schemes (benefits to households in goods and services) ............. 4 312 4 207 4 207 4 104 Consumer Advocacy and Research Fund ..................... 284 277 277 276 Contingency provisions — employee entitlements ......... 219 519 19 849 68 537 4 173 Contingency provisions — investing contingencies ....... 18 436 9 188 114 327 6 700 Contingency provisions — supplies and services .......... 153 677 258 290 397 522 97 880 Contribution to Racing SA ............................................. 18 100 17 700 — — Department of Human Services ..................................... 4 355 4 345 4 345 3 845 Department for Environment and Water ........................ 543 530 530 476 Department for Energy and Mining ................................ 10 432 — — — Department of Treasury and Finance ............................ 365 356 356 348 Department of the Premier and Cabinet……………….. — 10 127 10 127 9 711 Emergency Services Agencies Funding ....................... 2 800 — — — Emergency services levy — land and business regulations ..................................................................... 276 276 276 276 Emergency services levy — pensioner concessions .... 6 634 — — — Emergency services levy remissions(b) .......................... 117 006 24 297 24 909 24 569 Essential Services Commission of South Australia ........ 421 576 524 680 Fire damage and insurance costs (SAICORP Fund No. 2) .................................................................... 4 400 — 7 000 — Future Jobs Fund .......................................................... 22 126 7 468 25 000 — ForestrySA ..................................................................... — 4 534 4 681 6 145 Gamblers Rehabilitation Fund........................................ 2 000 2 000 2 000 2 000



2018–19 Budget

2017–18 Estimated


2016–17 Actual

$000 $000 $000 $000 Housing Construction Grant(c) ........................................ — — — 500 Industry Financial Assistance Account ........................... 5 700 28 370 700 6 950 Job Accelerator Grant .................................................... 31 600 16 967 33 300 — Local Government Taxation Equivalent Fund ................ 769 769 600 657 Metropolitan drainage systems maintenance ................. 5 590 3 422 999 685 NRM Levy — Treasurer’s Water Licences ..................... 387 376 376 314 Office of the Commissioner for Public Sector Employment .................................................................. 7 525 — — — Parliamentary Budget Advisory Service ......................... — 1 750 — — Public Trustee ................................................................ 4 315 — — — Pre-construction grant(c) ................................................. 700 — — — Renewal SA .................................................................. 37 323 27 631 11 893 13 038 Residual electricity entities ............................................. 500 500 500 500 Riverbank Authority ........................................................ — 753 753 734 Return to public sector employment — ETSA employees ..................................................................... — — — 1 628 SA Lotteries ................................................................... 1 134 1 352 1 510 777 South Australian Housing Trust .................................... — 11 581 — — South Australian Water Corporation .............................. 120 530 125 754 123 379 117 655 Seniors Housing Grant ................................................... — 845 800 2 100 Small Business Payroll Tax Rebate ............................... — 11 500 11 935 10 964 Sport and Recreation Fund ............................................ 3 500 3 500 3 500 3 500 State Local Government Infrastructure Partnership ...... 3 000 — — — State Procurement Board .............................................. 347 337 337 450 Support services to parliamentarians ............................. 23 810 23 852 23 534 23 689 Support to Racing SA .................................................... — 4 850 — —

Other payments Other payments ............................................................. 100 120 100 761 Overpayment of income tax equivalent .......................... — — — 168 Payments to the South Australian Superannuation Fund .................................................... 30 000 — 30 000 — Refunds and remissions ................................................ 118 18 990 118 8 160

Cash used in operations 1 680 277 1 435 029 1 696 102 1 148 476 State government

Appropriation 1 748 226 1 519 616 1 752 379 1 453 363

Payments Cash alignment .............................................................. — 173 838 — 169 387

Net cash provided by state government 1 748 226 1 345 778 1 752 379 1 283 976 Net cash provided by (+)/used in (-) operating activities 67 949 -89 251 56 277 135 500

Treasury and Finane


2018–19 Budget

2017–18 Estimated


2016–17 Actual

$000 $000 $000 $000


Cash outflows

Other payments

Advances granted Department of Primary Industries and Regions ............. — 10 000 — — Future Jobs Fund ........................................................... 12 300 30 000 — — Thoroughbred Racing South Australia ........................... 5 000 — — —

Equity capital contributions Adelaide Festival Centre Trust ....................................... — 18 919 18 919 — ForestrySA ..................................................................... 4 328 — — — Renewal SA ................................................................... — — — 113 918 South Australian Housing Trust ..................................... 11 060 8 198 14 788 9 547 South Australian Water Corporation .............................. 30 860 13 100 18 200 —




Cash outflows

Repayment of borrowings

South Australian Government Financing Authority ........ 4 401 4 370 4 370 3 860

Cash used in financing activities 4 401 4 370 4 370 3 860 Net cash provided by (+)/used in (-) financing activities -4 401 -4 370 -4 370 -3 860

Net increase(+)/decrease (-) in cash equivalents — -173 838 — 8 175



Note: Totals may not add due to rounding.

(a) The 2017–18 Estimated Result includes amounts that were budgeted in Contingency provisions — supplies and services.

(b) Reflects the government’s election commitment to reduce fixed property emergency services levy bills.

(c) Reflects the introduction of a grant to purchase off the plan apartments where construction had not commenced and thesale contract was entered into between 22 June 2017 and 30 September 2017 (inclusive).



Administered items for the Department of Treasury and Finance Other Accounts Statement of cash flows

2018–19 Budget

2017–18 Estimated


2016–17 Actual

$000 $000 $000 $000


Receipts

Taxation Emergency services levy — state government ............. 5 024 6 741 6 621 8 253 Emergency services levy — other ................................. 143 605 220 346 213 172 216 938 Local Government Taxation Equivalent Fund ............... — — — 1 958

Sales of goods and services Housing Loans Redemption Fund(a) .............................. — — 2 — Essential Services Commission of South Australia ....... 89 199 199 274 Office of the Commissioner for Public Sector Employment(b) ............................................................... 3 329 3 134 2 796 2 880 State Procurement Board ............................................. — — — 69

Interest received Anzac Day Commemoration Council ............................ — — — 1 Country Price Equalisation Scheme .............................. — — — 246 CTP Insurance Regulator ............................................. — — — 211 Housing Loans Redemption Fund ................................. — — 552 262 Industry Financial Assistance Account .......................... — — — 404 Local Government Disaster Fund ................................. 3 018 3 018 3 018 424 Local Government Taxation Equivalent Fund ............... 35 35 35 9

Intra-government transfers Anzac Day Commemoration Council ............................ 100 350 350 350 Community Development Fund..................................... 20 000 20 000 20 000 20 000 Community Emergency Services Fund — state government ............................................ 3 536 1 117 1 163 1 135 Community Emergency Services Fund — other ........... 115 293 23 180 23 747 23 434 Essential Services Commission of South Australia ....... 421 576 524 680 Office of the Commissioner for Public Sector Employment .................................................................. 7 525 2 757 1 036 886 Local Government Taxation Equivalent Fund ............... 769 769 600 — Industry Financial Assistance Account .......................... 11 782 29 570 4 534 — Parliamentary Budget Advisory Service(c) ..................... — 1 750 — — State Procurement Board ............................................. 347 337 337 447 Support services to parliamentarians ........................... 23 810 23 852 23 534 23 689

Grants and subsidies Industry Financial Assistance Account .......................... — — — 15 237 Intergovernmental Federal Financial Relations ............. 2 542 445 2 372 365 2 509 625 2 048 590 Local Government Taxation Equivalent Fund ............... 2 025 2 025 2 025 —

Other receipts Community Emergency Services Fund ........................ 433 428 428 464 Essential Services Commission of South Australia ....... 18 301 18 118 18 118 4 361 Local Government Taxation Equivalent Fund ............... — — — 657



2018–19 Budget

2017–18 Estimated


2016–17 Actual

$000 $000 $000 $000

Office of the Commissioner for Public Sector Employment .................................................................. — 11 — 147 Industry Financial Assistance Account .......................... 268 332 332 -488 CTP Insurance Regulator ............................................. 113 997 119 920 117 839 74 652 Support services to parliamentarians ........................... — — — 57 Treasurer’s Interest in National Wine Centre ............... 7 6 6 25

Total receipts 3 016 159 2 850 936 2 950 593 2 446 252

Payments

Employee benefit payments CTP Insurance Regulator ............................................. 3 256 4 499 3 697 3 481 Essential Services Commission of South Australia ....... 4 457 4 261 4 237 3 500 Office of the Commissioner for Public Sector Employment .................................................................. 7 549 9 395 6 947 5 075 Parliamentary Budget Advisory Service ........................ — 625 — — State Procurement Board ............................................. 43 42 42 63 Support services to parliamentarians ............................ 17 387 17 195 16 877 17 483 Anzac Day Commemoration Council ............................ — — — 3

Payments for supplies and services Essential Services Commission of South Australia ....... 1 901 1 864 1 836 1 280 Housing Loans Redemption Fund ................................. — — 26 — CTP Insurance Regulator ............................................. 25 014 36 191 32 568 55 910 Parliamentary Budget Advisory Service ........................ — 1 125 — — State Procurement Board ............................................. 293 286 286 406 Support services to parliamentarians ............................ 7 425 7 891 7 239 6 352 Office of the Commissioner for Public Sector Employment .................................................................. 5 546 5 213 4 741 3 528 Treasurer’s Interest in National Wine Centre ................ 45 44 44 356 Anzac Day Commemoration Council ............................ 10 10 10 8

Intra-government transfers Community Development Fund..................................... 20 000 20 000 20 000 20 000 Community Emergency Services Fund ........................ 267 891 251 812 245 131 250 224 Essential Services Commission of South Australia ....... 13 711 13 356 13 356 — CTP Insurance Regulator ............................................. 26 124 26 455 26 154 —

Grants and subsidies Industry Financial Assistance Account .......................... 6 782 5 307 4 534 2 195 Intergovernmental Federal Financial Relations ............. 2 302 748 2 308 453 2 430 838 2 058 314 Office of the Commissioner for Public Sector Employment .................................................................. 59 145 31 172 Local Government Disaster Fund ................................. 6 085 5 185 1 615 1 206 Local Government Taxation Equivalent Fund ............... 2 829 2 829 2 660 2 620 CTP Insurance Regulator ............................................. 5 300 5 300 5 300 — Anzac Day Commemoration Council ........................... 90 340 340 339

Payments to government Intergovernmental Federal Financial Relations ............. 262 992 50 170 60 835 —

Other payments Essential Services Commission of South Australia ....... 7 7 7 4 Housing Loans Redemption Fund ................................. — 11 581 — — Office of the Commissioner for Public Sector Employment .................................................................. — — 3 288



2018–19 Budget

2017–18 Estimated


2016–17 Actual

$000 $000 $000 $000

Industry Financial Assistance Account .......................... — — — -30 Local Government Disaster Fund ................................. 145 145 145 — CTP Insurance Regulator ............................................. 54 449 51 606 52 008 5 030 State Procurement Board ............................................. 6 6 6 — Support services to parliamentarians ........................... 26 25 25 —

Total payments 3 042 170 2 841 363 2 941 538 2 437 807

Net cash provided by operating activities -26 011 9 573 9 055 8 445


Payments Purchase of plant and equipment

Essential Services Commission of South Australia ....... 50 357 77 — CTP Insurance Regulator ............................................. — 119 — 2 224 Support services to parliamentarians ........................... — 360 — 126

Purchase of intangible assets Essential Services Commission of South Australia ....... — — -77 38

Total payments 50 836 — 2 388

Net cash provided by investing activities -50 -836 — -2 388


Cash inflows Proceeds from other financial Assets

Industry Financial Assistance Account .......................... 3 750 4 000 4 000 — Cash generated from financing activities 3 750 4 000 4 000 —

Cash outflows Granted other financial assets

Industry Financial Assistance Account .......................... 5 000 27 409 — — Cash used in financing activities 5 000 27 409 — — Net cash provided by financing activities -1 250 -23 409 4 000 — Net increase (+)/decrease (-) in cash equivalents -27 311 -14 672 13 055 6 057

Reconciliation to operating payments

Operating payments

Less: Transferred in:

CTP Insurance Regulator ................................................... — 10 481 8 282 6 351

Office of the Commissioner for Public Sector Employment — 14 753 11 722 9 063

Equals: Operating payments 3 042 170 2 816 129 2 921 534 2 422 393



2018–19 Budget

2017–18 Estimated


2016–17 Actual

$000 $000 $000 $000

Reconciliation to operating receipts

Operating receipts


CTP Insurance Regulator ................................................... — 9 255 7 144 7 511

Office of the Commissioner for Public Sector Employment — 5 902 3 832 3 913

Equals: Operating receipts 3 016 159 2 835 779 2 939 617 2 434 828

Reconciliation to investing payments

Investing payments


CTP Insurance Regulator ................................................... — 119 — 2 224

Equals: Investing payments 50 717 — 164

(a) A business decision was made in 2017–18 financial year to finalise the closure of The Housing Loans Redemption Fund.

(b) As part of the Machinery of Government changes the Office of the Commissioner for Public Sector Employment will receiveadministrative support from the Department of Treasury and Finance beginning 1 July 2018.

(c) The Parliamentary Budget Advisory Service (PBAS) was established, effective 8 November 2017, under the Public Sector(Parliamentary Budget Advisory Service) Proclamation 2017. PBAS was subsequently abolished effective 1 July 2018under the Public Sector (Abolition of Parliamentary Budget Advisory Service) Proclamation 2018.





Expenses


The $46.5 million increase is primarily due to machinery of government changes (mainly implemented on 1 July 2018) which included the following business units transferring to Treasury and Finance:

• Shared Services SA ($54.0 million)

• SafeWork SA ($29.1 million)

• corporate services associated with the business units transferring to Treasury and Finance fromPremier and Cabinet ($13.0 million)

• South Australian Employment Tribunal ($8.2 million)

• Office of the Chief Procurement Officer ($7.0 million)

• Electorate and Ministerial Fleet Services ($6.9 million)

• Industrial Relations ($1.6 million)

• End User Computing ($1.5 million)

• Return to Work Services ($1.3 million)

• Commercial and Economics ($1.0 million)

partially offset by

• the following business units transferring out of Treasury and Finance:

– Office of the Registrar-General ($45.4 million)

– Office of the Valuer-General ($23.2 million)

– Veterans’ Affairs ($2.6 million)

• a reduction in expenditure for the Commercial Projects Group ($4.3 million).



• expenditure associated with the Office of the Registrar-General which transferred to Treasury andFinance ($42.8 million)

• additional expenditure for the Land Services Commercialisation project in 2017–18 ($12.0 million)

• higher costs associated with the Office of the Valuer-General retained function including therevaluation initiative ($6.7 million)

• additional expenditure for the Compulsory Third Party Insurance Market Reform project in2017–18 ($2.6 million)

• additional expenditure due to the schools Private Public Partnership project in 2017–18($1.5 million).



• Office of the Registrar-General which transferred to Treasury and Finance during 2017–18($42.8 million)

• Office of the Valuer-General which transferred to Treasury and Finance on 1 July 2017($23.2 million)

• Land Services Commercialisation project in 2017–18 ($12.0 million)

• establishment of the schools’ Public Private Partnership project in 2017–18 ($1.5 million).

Income


The $9.2 million increase is primarily due to machinery of government changes (mainly implemented on 1 July 2018), which included the following business units transferring to Treasury and Finance:

• SafeWork SA ($28.7 million)

• South Australian Employment Tribunal ($7.0 million)

• Office of the Chief Procurement Officer ($6.6 million)

• Shared Services SA ($5.4 million)

partially offset by

• the following business units transferring out of Treasury and Finance:

– Office of the Valuer-General ($16.0 million)

– Veterans’ Affairs ($0.7 million)

– Office of the Registrar-General ($6.4 million)

• lower cost recoveries relating to the Compulsory Third Party Insurance Market Reform projectwhich is now reported in the Treasury and Finance Administered Items Other Accounts($9.2 million)

• lower cost recoveries for sub-program 2.3 Superannuation Services primarily relating to Super SAcapital projects ($7.1 million).


The $19.1 million increase is primarily due to higher cost recoveries for:

• the Office of the Registrar-General which transferred to Treasury and Finance during 2017–18($6.4 million)

• sub-program 2.3 Superannuation Services relating to Super SA capital projects ($5.7 million)

• the Compulsory Third Party Insurance Market Reform project ($2.2 million)

• the Office of the Registrar-General relating to the Land Services Commercialisation project($1.9 million)

• sub-program 2.2 Treasury, Insurance and Fleet Services relating to an increase in capitalexpenditure on an office fit-out project ($0.9 million).





• income associated with the Office of the Valuer-General including cost recoveries relating to theLand Services Commercialisation project ($16.1 million)

• income associated with the Office of the Registrar-General which transferred to Treasury andFinance during 2017–18 ($6.4 million).


The movements in the financial position are consistent with the machinery of government changes discussed under the Statement of comprehensive income.



Administered items

The administered items for the Department of Treasury and Finance include Consolidated Account items, special deposit accounts and the assets and liabilities held on behalf of the state by the Treasurer. The more significant assets and liabilities include cash and deposits at call, loans made to other government entities, past superannuation liabilities and borrowings. For presentation purposes, three cash flow statements have been prepared: Consolidated Account items, Treasury and Finance Administered Items Account, and Other Accounts. This format has been used to provide clarity given the volume of items administered by the department.

The Consolidated Account items cash flow statement presents administered receipts collected on behalf of the government and paid to the Consolidated Account. The statement also includes administered payments that are funded by specific appropriation authorised in various Acts.

The Treasury and Finance Administered Items Account cash flow statement presents payments administered on behalf of the government and funded by appropriation authorised in the annual Appropriation Act.

The Other accounts cash flow statement presents the receipts and payments for the remaining special deposit accounts administered by the department.

Statement of Comprehensive Income

Expenses

Material variances arise from:

• employee benefits expense — revaluation of unfunded superannuation liability. The movement inthe revaluation of unfunded superannuation liability between the 2017–18 Estimated Result and the2018–19 Budget reflects a number of factors including the past service payment and higherprojected earnings on superannuation assets



• grants and subsidies are lower in the 2017–18 Estimated Result compared to the 2018–19 Budgetreflecting the impact of the Land Services commercialisation transaction of $1.605 billion paid tothe Consolidated Account in 2017–18 reducing the borrowing requirement in that year.

Income


• higher tax equivalent payment from Return to Work Corporation of South Australia in the2017–18 Estimated Result compared to the 2018–19 Budget relating to a higher than expectedestimated profit in 2016–17

• higher taxation revenue in the 2018–19 Budget compared to the 2017–18 Estimated Result due tothe introduction of the betting operations tax, higher contributions from SA Lotteries, higher landtax receipts and higher payroll tax

• higher Commonwealth revenues in the 2018–19 Budget compared to the 2017–18 Estimated Resultreflect higher GST revenue grants in 2018–19 as a result of growth in the GST pool and SouthAustralia’s grant share

• higher fees, fines and penalties in the 2017–18 Estimated Result mainly due to the transfer of theOffice of the Registrar-General from the Department of Treasury and Finance (DTF) to theDepartment of Planning Transport and Infrastructure (DPTI) from 1 July 2018 as a result of themachinery of government changes

• higher interest income on investments in the 2018–19 Budget compared to the 2017–18Estimated Result due to an increase in deposits with SAFA

• higher dividend income in the 2018–19 Budget compared to the 2017–18 Estimated Result due tohigher dividends from SA Water. SA Water’s dividend is budgeted to be $18.0 million higher inthe 2018–19 Budget than in the 2017–18 Estimated Result primarily reflecting 2018–19 Budgetsavings, including net electricity savings expected as a result of Zero Net Electricity Cost 2020 andother efficiencies

• Other income — return of surplus cash held by agencies at 30 June 2017 to the ConsolidatedAccount in 2017–18 in accordance with the cash alignment policy. Other income is also higher inthe 2017–18 Estimated Result due to revaluation income as a result of the initial recognition of landservices assets prior to sale.

Statement of Cash flows — Consolidated Account



• taxation revenues including:

– higher gross betting operations collections in the 2018–19 Budget compared to the 2017–18Estimated Result reflecting expected growth in net wagering revenue

– higher contributions from SA Lotteries in the 2017–18 Estimated Result compared to the2017–18 Budget reflects higher than estimated growth in net gambling revenue

– higher land tax receipts in the 2018–19 Budget compared to the 2017–18 Estimated Resultreflects estimated growth in taxable site values

– higher payroll tax collections in the 2018–19 Budget compared to the 2017–18Estimated Result reflect forecast growth in taxable payrolls but is impacted by the introductionof the government’s election commitment to exempt small businesses from payroll taxcommencing 1 January 2019. Higher payroll tax collections in the 2017–18 Estimated Resultcompared to the 2017–18 Budget reflects higher than expected growth in taxable payrolls.



• Commonwealth Government receipts arising from:

– higher GST revenue grants in the 2018–19 Budget compared to the 2017–18 Estimated Resultreflects expected growth in the national GST pool and South Australia’s grant share

– a reduction in Commonwealth specific purpose grants in the 2018–19 Budget compared to the2017–18 Estimated Result mainly reflects funding arrangements associated with SouthAustralia’s transition to the National Disability Insurance Scheme.

• dividends and distributions:

– reflects a decrease in dividend from HomeStart Finance in the 2018–19 Budget primarilyreflecting HomeStart Finance making an increased dividend payment in 2017–18 to contributeto the broader agency efficiency measure introduced in the 2017–18 Mid-Year Budget Review

– higher tax equivalent payment from Return to Work Corporation of South Australia in the2017–18 Estimated Result than in the 2018–19 Budget due to a higher than expected estimatedprofit in 2016–17

– reflects a decrease in dividend from Renewal SA in the 2018–19 Budget reflecting the expectedtiming of sales associated with Renewal SA’s major developments

– reflects a higher dividend in the 2018–19 Budget in the South Australian Financing Authoritycompared to 2017–18 as a result of an anticipated increase in profits

– SA Water’s dividend is budgeted to be $18.0 million higher in the 2018–19 Budget than inthe 2017–18 Estimated Result primarily reflecting 2018–19 Budget savings, including netelectricity savings expected as a result of Zero Net Electricity Cost 2020 and other efficiencies.

• Other receipts:

– the return of cash to the Consolidated Account in the 2017–18 Estimated Result in accordancewith the cash alignment policy.



• sale of property, plant and equipment:

– reflects proceeds from appointing an exclusive service provider for land services in the 2017–18Estimated Result

• return of capital by:

– Defence SA in 2017–18 following sale of Techport Australia including the Common UserFacility, Shipbuilding Expansion Area and Maritime Skills Centre to the CommonwealthGovernment.

Statement of cash flows — Treasury and Finance Administered Items Account



• employee benefit payments — past service payments higher in 2017–18 due mainly to the impactof higher investment earnings

• grants subsidies and transfers:

– higher contingency provisions in the 2018–19 Budget due to higher employee entitlementprovisions

– higher small business payroll tax rebate in the 2017–18 Estimated Result reflects the conclusionof the rebate scheme



– higher Jobs Accelerator Scheme in the 2018–19 Budget reflects the expected profile of grant payments under the scheme

– higher emergency services levy, pensioner concessions in the 2018–19 Budget reflects the transfer of administrative arrangements for processing these concessions to DTF

– higher emergency services levy remissions in the 2018–19 Budget reflects the government’s election commitment to reduce fixed property emergency service levy bills by $90 million per annum

– higher refunds and remissions in the 2017–18 Estimated Result reflecting the payment of ex-gratia relief for transactions that were undertaken while legislation was being passed relating to a number of the government’s tax reform measures introduced in the 2015–16 Budget.



• other payments:

– higher payments to the Department of Primary Industries and Regions in the 2017–18 Estimated Result reflecting the Farm Finance Concessional Loan Scheme

– equity capital contribution to Adelaide Festival Centre Trust in 2017–18 to fund the purchase of the existing Her Majesty’s Theatre asset from Arts SA

– lower equity contributions to the South Australian Housing Trust in the 2017–18 Estimated Result in line with Commonwealth revenues associated with the National Partnership on Remote Housing

– higher equity capital contributions in SA Water in the 2018–19 Budget to fund Northern Adelaide Irrigation Scheme and Northern Reservoirs Upgrade.

Statement of cash flows — Other Accounts


Receipts


• grants and subsidies — an increase in receipts is primarily due to increased payments from the Disability Care Australia Fund by the Commonwealth Government for the reimbursement of state expenditure incurred in relation to the National Disability Insurance Scheme Act 2013

• intra-government transfers — an increase in the government’s contribution to fixed property Emergency Services Levy (ESL) resulting from fixed property ESL remissions. This is partially offset by a decrease in receipts for Future Jobs Fund following the expenditure authority to make the assistance being transferred from the line Future Jobs Fund in the Treasury and Finance Administered Items Account to the Industry Financial Assistance Account within the Administered Items for the Department of Treasury and Finance

• taxation — a decrease in receipts raised as part of the ESL due to remissions consistent with the government’s election commitment.

Payments


• payments to government — increase in payments primarily due to payments from the Disability Care Australia Fund by the Commonwealth for the reimbursement of State expenditure incurred in relation to the National Disability Insurance Scheme Act 2013 paid to the Consolidated Account



• intra-government transfers — increase in payments relating to the Community Emergency Services Fund mainly due to increased services funding requirements

• other payments – decrease in payments reflecting the decision to finalise the closure of the Housing Loans Redemption Fund and transfer the balance of the fund to the South Australian Housing Trust.


Payments

• granted other financial assets — a decrease in payments for Future Jobs Fund following the expenditure authority to make the assistance being transferred from the line Future Jobs Fund in the Treasury and Finance Administered Items Account to the Industry Financial Assistance Account within the Administered Items for the Department of Treasury and Finance.



Accounting standards

The financial statements included in the 2018–19 Agency Statements are special purpose financial statements.

Estimates in these financial statements have been prepared on a basis consistent with:

• Australian Accounting Standards, except where these notes indicate otherwise

• accounting policies expected to be used in preparing historically orientated general purposefinancial statements for that year, and the same accounting policies have been used for thesubsequent forecast years (forward estimates).

Reporting entities

The financial statements include all estimated assets, liabilities, incomes and expenses of individual agencies.

Consistent with Australian Accounting Standards, estimated transactions and balances that are controlled are budgeted for, and reported on, separately to estimated transactions and balances which are administered but not controlled by the agency.

Activities that are ‘controlled’ are those where the agency delivers services and governs the financial and operating policies so as to obtain benefits from these activities and assets in the pursuit of its objectives.

Generally, activities that are ‘administered’ are those where the agency provides a service or function on behalf of the Minister and is unable to use the resources for the furtherance of its own objectives.

Basis of accounting and measurement

The estimated financial statements include a statement of comprehensive income, statement of financial position and a statement of cash flows.

The format of these estimated financial statements is consistent with the model financial statements (prepared by the Department of Treasury and Finance for statutory reporting requirements) and is consistent with the requirements of AASB 101 Presentation of Financial Statements and AASB 107 Statement of Cash Flows.

The accrual basis of accounting has been applied in the preparation of the estimated financial statements whereby estimated assets, liabilities, equity, incomes and expenses are recognised in the reporting period to which they relate, regardless of when cash is received or paid.

Accounting Standards


Assets

Most government assets are valued at their written-down current cost. Otherwise agencies adopt one of the following measurement bases:

• fair value — is the price that would be received to sell an asset in an orderly transaction between market participants at measurement date.

• market value — amount that uses prices and other relevant information generated by market transactions involving identical or comparable assets.

• current cost — amount that would be required currently to replace the service capacity of an asset.

All non-current tangible assets, with a cost of acquisition greater than $1.0 million and a useful life of more than three years, are required to be valued at fair value unless excluded from the scope of Australian Accounting Standard AASB 116 Property, Plant and Equipment and/or an alternative valuation is specified by another accounting standard.

All intangible assets are measured at cost.

Depreciation and amortisation

All non-current assets having limited useful lives are systematically depreciated over their useful lives in a manner that reflects the consumption of their service potential. The most common method used for calculating depreciation expense is the straight line method.

Certain heritage assets have very long and indeterminate useful lives. Their service potential has not, in any material sense, been consumed during the reporting period. As such, no amount for depreciation has been recognised in respect of those assets.

Assets acquired under finance leases are depreciated/amortised over the period during which the government is expected to benefit from use of the leased asset.

Employee benefits

Employee benefits (including salaries and wages, annual leave, long service leave, skills and experience retention leave, sick leave and superannuation benefits) reflect those benefits accrued as a result of services provided by employees up to the reporting date.

Short-term employee benefits (expected to be settled within 12 months after the end of the reporting period in which the employee rendered the services) are measured at a nominal amount based on the remuneration rates an agency expects to pay. Examples of short-term employee benefits include salaries and wages and annual leave.

Long-term employee benefits (other than short-term) are measured at the present value of estimated future cash flows. An example of a long-term employee benefit is long service leave.

Sick leave

For the majority of agencies, no liability will be recognised for sick leave.

There is no liability for non-vesting sick leave (a non-vesting entitlement is that which does not constitute a legal obligation of the employing agency until a valid claim is made by an employee or an event has occurred) if, on average, sick leave taken is less than total entitlements accruing.

Vesting sick leave entitlements are rare for state government employees.



Superannuation

For most state government controlled agencies, the Treasurer assumes the accrued superannuation liability in return for periodic payments from agencies. Therefore, unless there are contributions due but not yet paid at the reporting date, there is no superannuation liability recorded for the agency.

Two types of superannuation plans are in operation currently in the public sector: defined benefit plans and defined contribution plans. In a defined benefit plan, a member’s entitlement is determined by reference to a formula based on years of membership and/or salary levels. In a defined contribution plan, a member’s entitlement is determined by reference to accumulated contributions made to the plan together with investment earnings thereon.

Under existing arrangements, the Treasurer is liable for any net deficiency in assets for the defined benefits plans. Deficits in defined benefit superannuation plans are recognised as liabilities in the statement of financial position for the Treasurer. The deficits are measured as the excess of employees’ accrued benefits resulting from services up to the reporting date over the fair value of the plan’s assets as at the reporting date.

Income recognition

Wherever possible, income is recognised when the transaction or event giving rise to the income occurs. As a result, all items of income are normally reported in the statement of comprehensive income when an agency obtains control over the respective amounts. In circumstances where it is not possible to determine objectively when control over the asset passes to the agency, the amounts are recognised upon receipt.

Appropriation

The investment program requirements for agencies included in the agency statements may be funded through operating appropriation, operating receipts, the proceeds of asset sales, grants and through Commonwealth payments. Where the investment requirements of an agency are not funded from these sources, the state government funding of an agency’s investment program will generally be treated as an equity contribution from the government, as representative owner. These contributions are treated as contributions to equity rather than income in an agency.

Funds appropriated, but not required to meet current year cash outflows will be deposited with the Treasurer and will show as an asset in the agency’s statement of financial position.

Cash alignment policy

Where agencies have returned excess cash held to the Treasurer in accordance with the cash alignment policy, the payment is generally recorded as ‘expenses to state government’ in the statement of comprehensive income. Some agencies have elected to repay debt or return contributed capital with excess cash balances. These transactions will be reflected in the statement of financial position.

Rounding

All estimated amounts in the financial statements have been rounded to the nearest thousand dollars, unless otherwise indicated.

Due to rounding, there may be instances where estimated financial statements and tables do not add correctly.



STATEBUDGET.SA.GOV.AU

BUDGET PAPER 4 | Agency Statements | Volum

e 4STATEBUDGET.SA.GOV.AU

DEPARTMENT OF TREASURY AND FINANCE

State Administration Centre

200 Victoria Square, Adelaide

South Australia, 5000

GPO Box 1045, Adelaide

South Australia, 5001

Telephone: +61 (08) 8226 9500

treasury.sa.gov.au

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