FINAL BUDGET OUTCOME 2003-04 - treasury.sa.gov.au...the differences in the 2003-04 final budget outcome and the earlier estimates. Table 1.2 provides a reconciliation of the changes

FINAL BUDGET OUTCOME 2003-04

Presented by the Honourable Kevin Foley MP

Deputy Premier and Treasurer of South Australia For The Information Of Honourable Members

General enquiries regarding Financial Papers and Financial Information papers should be directed to:

The Under Treasurer Department of Treasury and Finance State Administration Centre 200 Victoria Square Adelaide 5000 SOUTH AUSTRALIA Copies may be obtained from: SERVICE SA Government Legislation Outlet Land Titles Office 101 Grenfell Street Adelaide SA 5000 © Government of South Australia 2004 ISSN 1036-3807

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FOREWORD

The Final Budget Outcome document reports the 2003-04 financial results for the Government of South Australia’s key fiscal targets and provides an analysis of these results against earlier estimates.

Chapter 1 provides an overview of the 2003-04 final outcomes with the focus on the general government financial outcomes and net debt. The chapter includes:

• a comparison of the original 2003-04 Budget with the estimates for 2003-04 as revised at the time of the 2004-05 Budget and with the 2003-04 final outcome for revenues and expenses of the general government sector;

• public sector net debt and superannuation liability levels as at 30 June 2004; and

• contingent liabilities as at 30 June 2004.

Chapter 2 provides an assessment of the performance of the South Australian economy in 2003-04.

Chapter 3 summarises the performance of government businesses undertaking commercial and non-commercial activities, and discloses dividend and tax equivalent payments made by those businesses.

The appendices to this document provide the following information:

• Appendix A contains the Uniform Presentation Framework reporting for the general government sector, public non-financial corporations sector, the non-financial public sector and public financial corporations sector. It also provides further information on general government taxation revenue, and general government expenses and general government capital expenditure by function.

• Appendix B details the Loan Council Allocation for 2003-04.

• Appendix C summarises the receipts and payments of the Consolidated Account.

• Appendix D makes certain disclosures pursuant to the Intergovernmental Agreement on the Reform of Commonwealth-State Financial Relations.

• Appendix E provides a list of South Australian Public Sector agencies.

• Appendix F provides historical budget data.

TABLE OF CONTENTS

Foreword ...................................................................................................................................................i

Chapter 1 Final Budget Outcome 2003-04

Overview.................................................................................................................................. 1.1

The General Government Sector........................................................................................... 1.3

Balance Sheet Indicators....................................................................................................... 1.10

Contingent Liabilities ........................................................................................................... 1.14

Chapter 2 Economic Performance

National Economic Performance for the year 2003-04....................................................... 2.1

South Australian Economic Performance for the year 2003-04 ........................................ 2.1

Chapter 3 Government Businesses

South Australian Water Corporation ................................................................................... 3.1

ForestrySA................................................................................................................................ 3.1

Land Management Corporation ........................................................................................... 3.1

Lotteries Commission of South Australia............................................................................ 3.1

Appendices

Appendix A Uniform Presentation Framework

Appendix B Loan Council Allocation Report

Appendix C Consolidated Account

Appendix D Disclosures pursuant to Intergovernmental Agreement on the Reform of Commonwealth –State Financial Relations

Appendix E South Australian State Public Sector Organisations

Appendix F General Government Time Series

CHAPTER 1: FINAL BUDGET OUTCOME 2003-04

Overview

The Government of South Australia recorded a budget surplus of $424 million in 2003-04. This final outcome represents an improvement of $444 million on the deficit of $20 million forecast at the time of the 2003-04 Budget. Furthermore, the final outcome for 2003-04 represents the second consecutive year of substantial budget surpluses.

The strong budget surplus in 2003-04 reflected a number of specific factors, including buoyant conditions in the housing market (boosting property related taxation revenues); the slippage of some expenditure to 2004-05 and future years (particularly slippage in a number of capital projects); a $50 million special dividend paid by the Land Management Corporation; and a $59 million dividend paid by the South Australian Asset Management Corporation. Consequently, the 2003-04 outcome does not point to similar surpluses in the future, particularly given recent signs of a moderation in national housing market conditions.

The budget surplus achieved in 2003-04 has been used to reduce net debt. Net debt for the general government sector has fallen by $442 million in 2003-04. This lower level of net debt will generate ongoing interest savings in future years.

The cash surplus for the year was $522 million, $98 million higher than the accrual net lending surplus. The cash and accrual measures differ largely because of the gap between the accrual superannuation expenses and the actual cash payments to superannuation during the year.

Table 1.1 reports the outcomes for the key general government sector aggregates in 2003-04.

Table 1.1: General Government sector aggregates(a) ($million)

(a) For the purposes of preparing the budget estimates some expenses were reported net of revenue, whereas in the Final Budget Outcome they are reported in gross terms (that is, without the associated revenue being subtracted). This accounting difference means that both expenses and revenues are boosted relative to earlier estimates.

(b) There is a structural break in the methodology used to calculate superannuation liabilities between 2002-03 and 2003-04. This accounting change involved a significant increase in estimated superannuation liabilities and is explained in further detail later in this chapter.

2002-03 2003-04 2003-04 2003-04Outcome Estimate at Estimate at Outcome

2003-2004 2004-2005Budget Budget

Revenue 9 346 9 161 9 793 9 955Expenses - 8 898 - 9 103 - 9 528 - 9 570Gross fixed capital formation -433 -486 -425 -406Depreciation 401 410 427 435Change in inventories -2 -2 -2 10Accrual net lending 414 -20 264 424Memorandum items:

Cash surplus 658 83 381 522Net Debt 666 719 382 224Unfunded Superannuation(b) 4 445 4 596 5 756 5 668

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Chapter 1: Final Budget Outcome 2003-04

General government sector net lending in 2003-04 was $424 million, an improvement of $160 million over the estimated surplus of $264 million reported at the time of the 2004-05 Budget.

Revenue gains of $162 million drove this improvement, while higher than estimated operating expenses were broadly offset by lower than estimated capital expenditure. Revenue gains since the 2004-05 Budget relate mainly to agency revenue (fees, charges and grants from State sources) and, to a lesser extent, taxation revenues and interest income.

Total operating expenses in 2003-04 were $42 million higher than forecast at budget time in May 2004. This increase mainly reflects higher than estimated Commonwealth grants passed on to other sectors (increasing both expenses and revenues) and revised accounting treatments resulting in the re-classification of capital expenditure to operating expenditure, partly offset by overall lower agency expenditure relative to earlier estimates.

The variations between the original estimated budget outcome in the 2003-04 Budget, the revised estimate published in the 2004-05 Budget and the final outcome for 2003-04 can be disaggregated into policy variations and parameter and other variations.

Policy variations relate to actual Government decisions (that is, they are “planned” variations).

Parameter and other variations relate to “unplanned” variations such as:

• revenue collections being at variance with estimates;

• the impact of changes in transaction volumes on revenue collections; or

• agency expenditure not being in accordance with budget allocations (for example, because demand for a particular program was stronger or weaker than expected).

It is useful to discriminate between the two types of variations in analysing the reasons for the differences in the 2003-04 final budget outcome and the earlier estimates. Table 1.2 provides a reconciliation of the changes in general government net lending in terms of policy decisions and parameter and other variations.

As noted earlier, the 2003-04 final budget outcome is $160 million better than the estimate provided at the time of the 2004-05 Budget. As shown in Table 1.2, this reflects an improvement of $166 million due to parameter and other variations, offset by a deterioration of $6 million due to policy measures.

Policy measures since the 2004-05 Budget that impact on general government net lending in 2003-04 include:

• increased expenditure for developing the future ICT arrangements for the South Australian Government ($2 million)

• additional housing for families at risk of homelessness ($3 million).

The following section discusses the major revenue and expenditure variations for the general government sector in more detail.

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Table 1.2: Reconciliation statement — general government net lending ($million)

(a) Individual items in the table are expressed in terms of variations that impact on the budget balance (accrual net lending).

The General Government Sector

The 2003-04 final outcome for the general government sector operating statement is presented in the table below. A full set of financial statements produced in accordance with the Uniform Presentation Framework is provided in Appendix A.

2003-04

Original estimate at 2003-04 Budget -20Policy measures after the 2003-04 Budget

Revenue - other —Operating expenses -163Net capital investment expenditure 23

Net effect of policy measures after the 2003-04 Budget. -140

Policy measures in the 2004-05 BudgetRevenue - taxation —Revenue - other —Operating expenses -20Net capital investment expenditure 3Offset by: provisions set aside in the 2003-04 Budget 29

Net effect of policy measures in the 2004-05 Budget 12Parameter and other variations

Revenue - taxation 320Revenue - other 312Operating expenses -272Net capital investment expenditure 52

Net effect of parameter and other variations 412

Estimate at 2004-05 Budget 264

Policy measures after the 2004-05 BudgetOperating expenses -6

Net effect of policy measures after the 2004-05 Budget -6

Parameter and other variationsRevenue - taxation 23Revenue - other 139Operating expenses -34Net capital investment expenditure 38

Net effect of parameter and other variations 166

Final outcome for 2003-04 424

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Table 1.3: General government sector operating statement 2003-04 ($million)

The major items contributing to the general government net lending outcome are discussed below.

Operating Revenue

Operating revenues in 2003-04 were $162 million higher than was estimated at the time of the 2004-05 Budget. Most of the increase relates to increased revenue from the sale of goods and services with smaller increases in taxation revenue, grants and interest income.

Relative to the original Budget estimate for 2003-04, operating revenues for the general government sector were $794 million higher. Taxation and Commonwealth grants account for $493 million of this improvement with $301 million attributable to agency-based revenues and, to a lesser extent, interest income.

Taxation revenue

Taxation receipts exceeded the original budget estimate for 2003-04 by $343 million. Most of this improvement relates to property-related taxes, reflecting the strength of property market

2003-04 2003-04 2003-04Estimate at Estimate at Outcome

2003-04 2004-05Budget Budget

GFS RevenueTaxation revenue 2 463 2 783 2 806Current grants 4 729 4 916 4 906Capital grants 166 165 191Sales of goods and services 952 1 049 1 165Interest income 123 159 172Other 729 722 715

Total revenue 9 161 9 793 9 955lessGFS expenses

Gross operating expensesEmployee expenses 4 088 4 271 4 313Depreciation 410 427 435Other operating expenses 2 481 2 310 2 305

Nominal superannuation interest expense 337 354 354Other interest expenses 249 269 253Other property expenses — — —Current transfers 1 516 1 868 1 894Capital transfers 23 29 16

Total expenses 9 103 9 528 9 570equalsGFS net operating balance 58 264 385

lessNet acquisition of non-financial assets

Puchases of non-financial assets 532 563 530less Sales of non-financial assets 46 138 124less Depreciation 410 427 435plus Change in inventories 2 2 - 10plus Other movements in non-financial assets — — —

equals Total net acquisition of non-financial assets 78 — - 38equalsGFS net lending - 20 264 424

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conditions in 2003-04. Smaller improvements above budget were recorded for payroll tax, motor vehicle taxes and gambling taxes. Taxes on insurance were slightly below budget.

The final outcome for taxation revenue in 2003-04, was $23 million higher than estimated in the 2004-05 Budget. Property-related taxes account for most of the improvement in tax collections. Land tax receipts, however, were short of the estimated outcome by $5 million.

Insurance duty receipts also fell short of the estimated outcome, reflecting lower than projected growth in premium revenues.

Taxes on motor vehicles exceeded the estimated result reflecting higher than expected motor vehicle registrations and transfers in the final three months of the 2003-04 financial year.

Table 1.4 provides further details of variations in actual tax receipts relative to estimates for 2003-04.

Table 1.4: Taxation variations ($ million)

Taxation revenue for 2003-04 Variations in actual collections against:

Original budget estimate

Estimated outcome as at 2004-05 Budget

Property-related taxes:

Conveyance duty 236.9 13.1

Land tax 11.2 -5.2

Other property related taxes (a) 39.8 17.1

Payroll tax 35.8 1.8

Motor vehicle taxes 18.0 3.0

Gambling taxes 7.2 1.8

Insurance taxes -5.3 -8.0

Other taxes -0.5 -0.5

Total taxation 343.1 23.1

(a) Includes stamp duties on mortgages, rental, cheques, shares and leases, together with ESL on fixed property, guarantee fees, water catchment levies and debits tax.

Table A.13 in Appendix A provides a breakdown of taxes collected by tax category.

Current grants

Revenue from current grants exceeded the original budget estimate by $177 million but fell short of the estimated outcome at the time of the 2004-05 Budget by $10 million.

Most of the improvement against the original budget estimate related to general and specific purpose grants from the Commonwealth with smaller improvements in grants from State sources. The shortfall against the estimated result reported in the 2004-05 Budget is mainly due to an overestimate of GST collections in the Commonwealth’s May 2004 Budget.

GST revenue grants and transitional assistance

GST revenue growth for 2003-04 was much stronger than was originally budgeted by the Commonwealth. The GST pool increased by 9 per cent rather than the 4 per cent growth originally assumed by the Commonwealth. South Australia’s share of GST receipts exceeded the original budget estimate by $140 million.

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Stronger growth in GST revenue removed the need for transitional assistance from the Commonwealth in 2003-04 whereas, at the start of the year, a transitional assistance requirement of almost $52 million was anticipated. This means the net gain against the original budget from GST-related grants is $88 million.

GST revenue collections for 2003-04, nevertheless, fell short of the Commonwealth’s estimate at the time of its May 2004 Budget. This accounts for a $10 million shortfall in South Australia’s GST revenue grants compared to the estimated outcome at the time of the 2004-05 Budget.

National Competition Policy grants

Competition grants were $7 million below the original 2003-04 Budget estimate. The variation from the original budget reflects the penalty imposed as the result of a National Competition Council assessment that South Australia did not take sufficient action to remove several legislative restrictions on competition.

Specific purpose recurrent grants from the Commonwealth

Specific purpose Commonwealth grants for recurrent purposes exceeded the original budget estimate for 2003-04 by $69 million mainly in the areas of funding for schools (government and non-government), health and local government.

The actual outcome was higher than the estimated outcome at the time of the 2004-05 Budget by $7 million, mainly in relation to funding for education and local government.

Other grants

Recurrent grants from State sources exceeded the original budget estimate for 2003-04 by $28 million but fell short of the estimated outcome at the time of the 2004-05 Budget by $7 million.

The improvement against budget in other grants is spread across a range of portfolio areas including funding for water conservation, further education and primary industries.

The shortfall against the estimated outcome is mainly due to lower than expected grants for health programs and the reclassification of some funding for water quality and salinity programs under the National Action Plan from other grants to sales of goods and services.

Capital grants

Capital grants exceeded the original budget estimate by $25 million and the estimated outcome by $26 million. Both movements are largely due to the recognition of assets transferred free of charge to the general government sector. This includes the transfer of Santos Stadium to the Office of Recreation and Sport, which falls within the general government sector. Also included is the transfer of land, buildings and equipment to the Minister for Emergency Services, on behalf of the Country Fire Service, from various local government bodies and community organisations.

Sales of goods and services

Revenue from sales of goods and services exceeded the estimated outcome at the time of the May 2004 Budget by $116 million. This higher result mainly reflects health funding in the

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form of Commonwealth contributions for aged care provision, revenue from private practitioners for the right to work in public hospitals as well as increased revenue from hospital-based retail outlets such as shops and cafes. Land transfer fees were also stronger reflecting continued strength in the property market, while some funds under the National Action Plan for water quality and salinity programs have been reclassified from other grants to sales of goods and services.

These factors also contributed to the $213 million improvement against the original budget estimate for revenue from sales of goods and services. The change against budget is also affected by the recognition of ambulance fees following the reclassification of the South Australian Ambulance Service into the general government sector. Smaller revenue improvements against budget were spread across a range of portfolio areas.

Interest income

Interest income for 2003-04 was $49 million higher than the original budget estimate and $13 million higher than the estimated outcome at the time of the 2004-05 Budget, reflecting a higher level of cash balances held by the general government sector.

Other revenue

Other State revenues fell short of both the original budget estimate and the estimate at the time of the 2004-05 Budget by $14 million and $7 million respectively.

Fines and penalties fell short of both the estimated result at the time of the 2004-05 Budget and the original budget estimate primarily due to a lower number of traffic fines being issued through the year than previously estimated.

Distributions from public non-financial corporations, on the other hand, exceeded the original budget estimate by $22 million and the estimate at the time of the 2004-05 Budget by $11 million. The higher distributions relative to the estimated result were due to higher operating results for the Land Management Corporation and SA Water.

Operating expenses

The final outcome for total operating expenses in 2003-04 was $9 570 million, $42 million higher than the estimate of $9 528 million reported in the 2004-05 Budget.

This increase was primarily due to accounting variations. For example, in some cases, the budget estimates reflect expenses net of related revenues, whereas outcomes for the same expenses and revenues are reported on a gross basis. This difference in accounting treatments is reflected in both higher levels of revenue and expense in the final outcome compared with previous estimates. Examples of this ‘gross up’ effect are various cost recovery programs across government. Furthermore, revisions to accounting treatments resulting in the transfer of expenditure from capital to operating has served to boost the final total expense outcome in 2003-04 relative to previous estimates.

The higher level of expenses resulting from the changes in accounting treatments and policy measures introduced after the 2004-05 Budget, were partly offset by overall lower than estimated agency expenditure and a lower interest expense compared with the estimate provided in the 2004-05 Budget.

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A significant contributor to the overall lower agency expenditure was lower than estimated subsidy expenses in the Department of Trade and Economic Development (DTED) relating to investment attraction programs.

Delays in implementing various asset maintenance projects across Government due to a shortage of resources arising from the ongoing buoyancy of the construction industry, also contributed to lower than forecast operating expenditure in 2003-04.

Interest expenses for 2003-04 were lower than estimated at the 2004-05 Budget largely due to a lower level of debt reflecting a higher than estimated net lending outcome.

Some of the lower agency expenditure in 2003-04 will be carried over into later years. This will involve increased expenditure across the forward estimates, but particularly in 2004-05.

Fixed capital formation1

The net acquisition of non financial assets was a negative $38 million in 2003-04. This outcome is $38 million lower than the estimate reported in the 2004-05 Budget and $116 million lower than the estimate provided in the 2003-04 Budget.

The lower final outcome for the net acquisition of non financial assets in 2003-04 compared with the estimate provided in the 2004-05 Budget, reflects lower agency capital expenditure of $25 million (mainly due to the slippage of projects in the Transport, Justice and Administrative and Information Services portfolios); revised accounting treatments, resulting in transfers to operating expenditure of $16 million; a run-down in the level of inventories across government of $12 million; and a higher depreciation expense of $7 million2. The recognition of a higher than estimated level of assets transferred to the general government sector at no consideration of $22 million partly offset the otherwise lower than estimated net acquisition of non financial assets.

Expenses by function

Table 1.5 shows general government expenses by function according to Australian Bureau of Statistics Government Purpose Classification (GPC). Health (26.8 per cent) and education (25.3 per cent) expenditures accounted for a significant component of government expenditures in 2003-04.

1. The purchases and sales components of the net acquisition of non financial assets reflected in the original 2003-04 Budget are not directly comparable to the estimates provided in the 2004-05 Budget or the 2003-04 final outcome. This is due to an accounting change in the manner in which the amounts paid for the purchase of replacement vehicles in the Government’s fleet and the proceeds from the subsequent sales of those vehicles are recognised. The 2003-04 Budget reflected the purchases and sales on a net basis, whereas the 2003-04 estimate provided in the 2004-05 Budget and the final outcome reflect the fleet transactions on a gross basis. To enable a direct comparison between the estimates and the final outcome, the discussion in this section refers to the net purchase of non financial assets, being payments for asset purchases less proceeds from asset disposals.

2. Depreciation expense is recorded as a negative component of the net acquisition of non financial assets. Consequently, a higher depreciation expense leads to a reduction in the net acquisition of non financial assets.

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Following the publication of the 2004-05 Budget in May 2004, the Department of Treasury and Finance conducted a review of function data published in the 2004-05 Budget Papers. The review identified the need for ongoing improvements to the processes used to produce the data. As a result of the review, a number of errors in the function data published in the 2004-05 Budget were discovered. The errors occurred because some data were not properly coded and were assigned to incorrect functions. In addition, there were also some reclassifications of expenses. In particular:

• some health and social security expenditure were incorrectly allocated to housing; and

• First Home Owner Grants were reclassified to the housing function following advice from the Australian Bureau of Statistics after the 2004-05 Budget.

The errors have been corrected and revised function data were published in a corrigendum tabled in Parliament on 21 September 2004. As processes are further refined, future data revisions may be required. The data and discussion presented in this section reflect the revised data published in the corrigendum.

Table 1.5 reflects a number of variations in functional expenditure between the 2003-04 GPC estimates and the 2003-04 outcome. These variations are, in part, due to a wide variety of reclassifications as a result of improved data arising from the functional data review referred to above. The most significant of these reclassifications relates to the Support Accommodation Assistance Program within the human services portfolio that was reclassified to housing and community amenities from the social security and welfare function. Accounting variations referred to earlier in this chapter, (especially the ‘grossing up’ of revenue and expenses across government), also contribute to the variations in functional data relative to earlier estimates.

Aside from reclassifications resulting from improved data, the major underlying variations between the 2003-04 GPC estimates provided at the 2004-05 Budget and the 2003-04 outcome are provided below.

General public services

The increase of $31 million in the general public services function primarily reflects higher than estimated demand across government for the various services provided by the Department for Administrative and Information Services.

Social security and welfare

The lower than estimated expenditure for this function reflects a reclassification of $27 million relating to the Support Accommodation Assistance Program (SAAP) within the human services portfolio to the housing and community amenities function. Lower than estimated concession payments also contributed to lower than estimated expenditure for this function.

Housing and community amenities

The housing and community amenities function reflects higher than estimated expenditure of $18 million by the Department of Water, Land, Biodiversity and Conservation in relation to the National Action Plan for Salinity and Water Quality, and in relation to the National Heritage Trust. This higher expenditure was a result of higher than estimated revenue from

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the Commonwealth for these programs. The reclassification of the SAAP referred to above also served to boost expenditure for this function relative to earlier estimates.

Fuel and energy

The lower than estimated expenditure for this function is mainly due to a lower than estimated once-off expense for the full retail contestability for gas. The 2003-04 estimate provided in the 2004-05 Budget reflected an estimated expense of $64.5 million whereas the actual expense in 2003-04 was $54.1 million.

Other economic affairs

The lower than estimated expenditure for this function primarily reflects lower than estimated subsidy expenses in the Department of Trade and Economic Development relating to investment attraction programs.

Table 1.5: General government expenses by function(a) ($million)

(a) The 2003-04 Estimate at 2003-04 Budget and the 2003-04 Estimate at 2004-05 Budget differ from the estimates provided in the 2003-04 Budget and the 2004-05 Budget. The variations are due to the correction of classification errors discovered subsequent to the 2004-05 Budget. These adjustments to the published data were reflected in a corrigendum tabled in Parliament on 21 September 2004.

Balance sheet indicators

Compared with estimates at the time of the 2004-05 Budget, key balance sheet indicators have strengthened as a result of the higher budget surplus achieved in 2003-04.

General government sector

Table 1.6 sets out key balance sheet indicators for the general government sector.

2003-04 2003-04 2003-04Estimate at Estimate at Outcome


General public services 278 298 329Defence — — —Public order and safety 890 898 900Education 2 350 2 422 2 420Health 2 431 2 571 2 563Social security and welfare 532 590 545Housing and community amenities 625 635 710Recreation and culture 229 241 255Fuel and energy 33 105 87Agriculture, forestry, fishing and hunting 152 155 189Mining, manufacturing and construction 119 111 87Transport and communications 617 613 624Other economic affairs 241 244 219Other purposes 606 645 642Total GFS expenses 9 103 9 528 9 570

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Table 1.6: Key balance sheet indicators — general government sector

(a) There is a structural break in the time series of estimates of superannuation liabilities between 2002-03 and 2003-04. This is due to an accounting change which involved a significant increase in estimated superannuation liabilities and is explained further in detail later in this chapter.

General government net debt fell to $224 million at June 2004. This result is lower than estimated at the time of the 2004-05 Budget, mainly due to a larger than anticipated cash surplus. Net debt was 2.3 per cent of total revenue at June 2004, down from 7.1 per cent one year ago. Table 1.7 provides a reconciliation of the movement in general government net debt in 2003-04. The decrease in net debt during 2003-04 is primarily attributable to the application of the cash surplus towards debt reduction.

Table 1.7: Reconciliation of net debt — general government sector

The improvement in net debt was offset by an increase in the unfunded superannuation liability. However, as detailed in Table 1.9, the increase in the liability was primarily attributable to the adoption of a revised discount rate. Compared with the result estimated in the 2004-05 Budget, net debt plus the unfunded superannuation liability fell by $246 million.

In line with the improvements in net debt, net financial worth and net worth also improved during 2003-04 and the final outcomes were higher than estimated at the time of the 2004-05 Budget.



Net worth$m 15 288 14 328 15 227 15 760% of total revenue 163.6 156.4 155.5 158.3

Net financial worth$m 3 500 3 063 3 393 3 842% of total revenue 37.4 33.4 34.6 38.6

Net debt$m 666 719 382 224% of total revenue 7.1 7.8 3.9 2.3

Net debt plus unfunded superannuation$m 5 111 5 315 6 138 5 892% of total revenue 54.7 58.0 62.7 59.2

2003-04Outcome

Net debt at 30 June 2003 666

Decrease in net debt:General government cash surplus 522Reclassification of investments -75Net gain on revaluation of investments 17Inclusion of SA Ambulance Service net financial assets 17Other adjustments -38

Decrease in net debt 442

Net debt at 30 June 2004 224

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Table 1.8 shows movements in net worth attributable to operating transactions and other items.

Table 1.8: Reconciliation of general government sector net worth (Statement of other economic flows)

(a) As shown in Table 1.9, the unfunded superannuation liability increased by $1 223 million in 2003-04. Excluding the nominal superannuation interest expense $354 million, which is included in the net operating balance, and the past service superannuation cash payment ($236 million), which does not impact on net worth, the movement in the unfunded superannuation liability was $1 106 million.

The net worth of the general government sector has increased by $472 million in 2003-04. The net operating surplus contributed $385 million to the increase.

During 2003-04, general government equity in the net assets of public financial corporations increased by $196 million. The South Australian Community Housing Authority was the major contributor to this improvement ($135 million), primarily from increases in the value of debenture holdings with community housing organisations. The Motor Accident Commission’s financial position also improved ($106 million) as a result of market value increases in its investments and a decline in the net cost of claims. These improvements were partially offset by a decline in the net assets of the South Australian Asset Management Corporation ($46 million) reflecting distributions from the Corporation to the general government sector and recognised in the general government net operating balance.

The value of the general government sector’s investment in public non-financial corporations increased by over $1 billion during 2003-04. The increase can primarily be attributed to the South Australian Housing Trust, where the value of the Trust’s freehold land and buildings increased by $700 million as a result of the continued upward trend in the property market. SA Water also recorded an increase in net assets, primarily resulting from a $190 million revaluation of water and sewer infrastructure assets. Other increases were also recorded by Forestry SA and the Aboriginal Housing Authority.

These improvements were offset by an increase in the unfunded superannuation liability of $1.1 billion as discussed below.

As reported in the 2004-05 Budget, the net assets of the South Australian Ambulance Service have been included in the general government sector for the first time in 2003-04. This inclusion increased general government net worth by $38 million.

2003-04Outcome

Net worth at 30 June 2003 15 288

Change in net worth from operating transactions:Net operating balance 385

Change in net worth from other economic flows:Movement in net assets of PFCs 196Movement in net assets of PNFCs 1 031Movement of unfunded superannuation liability (a) -1 106

Inclusion of SA Ambulance Service net worth for the first time 38

Other adjustments -72

Total other economic flows 87


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The remaining $72 million decline in general government net worth resulted from a number of other revaluation adjustments, in particular downward revaluation of assets within the Department of Education and Children’s Services and Transport Services.

Table 1.9: Reconciliation of net unfunded superannuation liability

(a) The nominal superannuation interest expense represents the increase during the year in the present value of the defined benefit obligation, which arises because the benefits are one period closer to settlement.

(b) At the time of the 2004-05 Budget it was anticipated that the 2003-04 earnings rate would be 14.8 per cent, compared with the long-term earnings assumption of 7.5 per cent.

(c) Reflecting a final earnings rate for 2003-04 of 17.3 per cent.

An increase in the unfunded superannuation liability from June 2003 to the estimate at 30 June 2004 is primarily due to the adoption of a discount rate of 6.0 per cent to value the unfunded superannuation liability. The June 2003 estimate was calculated using a 7.5 per cent discount rate. The adoption of the revised discount rate has increased the estimated unfunded liability by $1.4 billion. Further details on this accounting change are provided in the 2004-05 budget papers (Budget Paper 3).

The decrease in the unfunded superannuation liability since the 2004-05 Budget largely reflects an increase in the earnings rate on assets held to fund future superannuation liabilities, from an estimated 14.8 per cent at the 2004-05 Budget to an actual outcome of 17.3 per cent.

Aside from net debt and the unfunded superannuation liability, the general government sector has significant liabilities for employee entitlements and provisions ($1 496 million at June 2004), largely comprising long service leave entitlements.

Non-financial public sector

Table 1.10 sets out the key balance sheet indicators for the non-financial public sector (which is comprised of the general government sector and public non-financial corporations sector).

$ m

Unfunded superannuation liability as at 30 June 2003 4 445Nominal superannuation interest expense (a) 354Past service payments - 236Impact of expected higher returns on investments (b) - 230Impact of changed actuarial assumptions 5Impact of change in discount rate 1 418

Estimate of 30 June 2004 unfunded liability as at 2004-05 Budget 5 756

Impact of higher than expected returns on investments (c) - 95Impact of changed actuarial assumptions and other movements 7

Unfunded superannuation liability as at 30 June 2004 5 668

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Table 1.10: Key balance sheet indicators at 30 June — non-financial public sector

The non-financial public sector net debt fell by $411 million in 2003-04, primarily a result of declining net debt in the general government sector. The public non-financial corporations component of net debt at June 2004 was $2.061 billion. This is an increase of $31 million since June 2003 but $80 million lower than estimated at the time of the 2004-05 Budget.

The negative net financial worth position ($9 550 million) largely reflects the net debt plus unfunded superannuation ($7 953 million) and other employee entitlements and provisions ($1 587 million) mainly comprising long service leave entitlements, plus other net equity and non equity financial assets and liabilities.

The negative net financial worth position of the non financial public sector of $9 550 million contrasts with the positive net financial worth of the general government sector of $3 842 million. This variation is reflects equity, (recognised as a financial asset), in the public non financial corporations sector held by the general government sector. This asset is eliminated in the consolidation of the public non financial sector.

Contingent Liabilities

Contingent liabilities are liabilities or other future commitments that have not been quantified and recognised in the statements of financial position for one or more of the following reasons:

• there is significant uncertainty as to whether a sacrifice of future economic benefits will be required;

• the amount of the liability cannot be reliably measured; or

• the existence of a liability will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Government.

Contingent liabilities often arise as a result of legislative provisions that require the Government to guarantee the liabilities of a number of public sector organisations, particularly those in the public financial corporations sector.



Net worth$m 15 288 14 328 15 227 15 760% of total revenue 150.3 145.5 145.3 147.2

Net financial worth$m -8 811 -9 072 -9 806 -9 550% of total revenue - 86.6 - 92.1 - 93.6 - 89.2

Net debt$m 2 696 2 905 2 522 2 285% of total revenue 26.5 29.5 24.1 21.3

Net debt plus unfunded superannuation$m 7 141 7 501 8 279 7 953% of total revenue 70.2 76.2 79.0 74.3

1.14


Any material losses resulting from unfavourable legal decisions are recognised in the Government’s financial statements as and when the decisions are final.

Table 1.11: Contingent liabilities of the Government of South Australia to entities external to the public sector as at 30 June 2003 and 30 June 2004

Value ($m) (a)

30 June 2003 30 June 2004

Guarantees (b) 923 996 Net present value of operating leases (c) 239 227 Other (d) 8 2 Total 1 170 1 225

(a) Valued at nominal values. No adjustments have been made to take into account the probability of actual liabilities occurring.

(b) Includes the total liabilities of the Local Government Financing Authority that are guaranteed by the Government of South Australia pursuant to the Local Government Finance Authority Act 1983.

(c) Net present value (NPV) of operating leases with a NPV of $1 million or greater.

(d) Includes contingent liabilities in respect of joint venture schemes.

The level of public sector contingent liabilities increased by $55 million during 2003-04 from $1 170 million at 30 June 2003 to $1 225 million at 30 June 2004. This is mainly due to an increase during 2003-04 in the level of liabilities guaranteed by the Government pursuant to the Local Government Finance Authority Act 1983 ($26 million); and an increase in the value of guarantees provided at the time of the disposal of the State’s electricity assets in respect of Flinders Osborne Trading Pty Ltd ($60 million). These increases are partly offset by a decline in the net present value of operating leases during the period of $12 million.

1.15

CHAPTER 2: ECONOMIC PERFORMANCE

National economic performance for the year 2003-04

The Australian economy continued to grow strongly in 2003-04. Real growth in Gross Domestic Product was 3.8 per cent in 2003-04, up from growth of 3.2 per cent in 2002-03. While growth in non-farm production moderated in 2003-04 (3.1 per cent compared with 4.2 per cent in 2002-03), farm production rose significantly (by 28 per cent in real terms compared with the drought affected fall of 25 per cent in 2002-03). Growth in domestic demand remained very strong, spilling over into rapid growth in imports.

South Australian economic performance for the year 2003-04

In the May 2004 State Budget it was estimated that real GSP in South Australia had grown by 4 per cent in 2003-04, following a reported 0.1 per cent growth in the drought affected 2002-03 year. Recently published estimates by the Australian Bureau of Statistics indicate growth of 4.3 per cent in 2003-04, above the national GDP growth rate of 3.8 per cent and up from a revised (and drought affected) growth rate of 1.4 per cent in 2002-03. State Final Demand (SFD) increased in real terms by 5.1 per cent in 2003-04, following extremely strong growth in 2002-03 of 7.9 per cent, and similar to national Domestic Final Demand growth of 5.3 per cent in 2003-04.

Strong demand growth in South Australia during 2003-04 was broadly based. Household consumption expenditure, the major component of SFD, rose by 4.4 per cent in real terms during the year, while business investment rose by 6.9 per cent - building further on the strong growth of 27 per cent in 2002-03.

Despite expectations of a downturn in the housing sector, dwelling investment in South Australia increased by 19 per cent. Activity was underpinned by low interest rates, strong growth in property values and a surge in renovation work.

Total government expenditure (Commonwealth, State and local) rose by 3.6 per cent in real terms in South Australia during 2003-04, with capital spending growing particularly strongly.

South Australia’s overseas goods and services exports recovered by 3.0 per cent in volume terms during 2003-04 after falling 6.1 per cent during 2002-03. The value of overseas goods and services exports fell by 4.7 per cent during 2003-04, reflecting lower prices.

South Australian employment increased by 1.4 per cent in 2003-04 (moderately higher than the original 2003-04 budget estimate of 1.0 per cent) following very strong growth of 2.8 per cent in 2002-03. Nationally employment growth also moderated, to 1.8 per cent in 2003-04 from growth of 2.5 per cent in 2002-03.

Reversing the pattern from the previous year, South Australian employment growth in 2003-04 was concentrated in part-time employment which grew by 3.9 per cent - up from just

2.1

Chapter 2: Economic Performance

0.4 per cent in 2002-03. Full-time employment grew 0.4 per cent in 2003-04 following very strong growth of 3.9 per cent in 2002-03. By the end of 2003-04, South Australia’s trend unemployment rate was 6.2 per cent, slightly lower than 6.3 per cent recorded at the end of 2002-03. Nationally the unemployment rate fell to 5.6 per cent in trend terms by the end of 2003-04, down from 6.2 per cent at the end of 2002-03.

Despite strong demand growth and higher oil prices, inflationary pressures remain subdued. The national Consumer Price Index (CPI) rose by 2.4 per cent in 2003-04, moderately below the Commonwealth’s initial Budget estimate of 2¾ per cent contained in the 2003-04 Budget. The CPI result sits in the middle of the Reserve Bank of Australia’s 2-3 per cent target for inflation over the medium-term. Adelaide’s CPI rose by 3.0 per cent, consistent with the original 2003-04 State Budget forecast.

Table 2.1: Economic Parameters –– Australia and South Australia real growth rates (per cent per annum), 2003-04

Original Budget forecast (a)

Revised Budget estimate (b) Outcome

Australia

Gross Domestic Product 3¼ 3¾ 3.8

Domestic Final Demand 3 5¾ 5.3

Employment 1¾ 1¾ 1.8

Consumer Price Index 2¾ 2¼ 2.4

South Australia

Gross State Product 2½ 4 4.3

State Final Demand 2 3¾ 5.1

Employment 1 1½ 1.4

Consumer Price Index 3 3 3.0

Sources: 2003-04 and 2004-05 Commonwealth and South Australian Budget Papers, and the Australian Bureau of Statistics.

(a) The 2003-04 Commonwealth Budget was delivered on 13 May 2003. The 2003-04 South Australian Budget was delivered on 29 May 2003.

(b) The 2004-05 Commonwealth Budget was delivered on 11 May 2004. The 2004-05 South Australian Budget was delivered on 27 May 2004.

2.2

CHAPTER 3: GOVERNMENT BUSINESSES

The Government of South Australian owns a broad portfolio of businesses that undertake commercial and non-commercial activities for the benefit of the State with the aim of recovering a significant portion of costs through user charges. Strong economic conditions during 2003-04 have resulted in distributions from government businesses exceeding those estimated in the 2003-04 Budget.

The contributions from the major government owned businesses are summarised in Table 3.1. All contributions are presented on an accrual basis, consistent with the 2004-05 Budget.

South Australian Water Corporation

In 2003-04 SA Water made distributions of $262.7 million to the Government of South Australia. The distributions included dividends of $174.1 million and tax equivalent payments of $88.6 million. Distributions were $14.5 million higher than the estimate at the time of the 2003-04 Budget due to higher income tax equivalent payments resulting from a stronger operating result. This stronger operating result largely arose from additional revenue from strong building sector activity.

ForestrySA

In 2003-04 ForestrySA made distributions of $34.0 million to the Government of South Australia in line with the estimate at the time of the 2003-04 Budget. The distributions included dividends of $21.8 million and tax equivalent payments of $12.3 million.

Land Management Corporation

In 2003-04 the Land Management Corporation made distributions of $62.9 million to the Government of South Australia. The distributions included dividends of $51.5 million and tax equivalent payments of $11.5 million. Distributions were $10.8 million above the estimate made at the time of the 2003-04 Budget, primarily due to strong performance through the year across residential land sales and development, property management and industrial development.

Lotteries Commission of South Australia

Distributions from the operations of the Lotteries Commission of South Australia are directed to the Hospitals Fund for the provision, maintenance, development and improvement of public hospitals, and also to the Recreation and Sport Fund to assist sporting and leisure activities in South Australia.

In 2003-04 the Lotteries Commission of South Australia made distributions of $81.7 million to the Government of South Australia in line with the estimate at the time of the

3.1

Chapter 3: Government Businesses

2003-04 Budget. These distributions comprised gambling tax of $56.2 million, distributed profits of $17.9 million and income tax equivalents of $7.5 million.

Table 3.1 South Australian Government Businesses — dividends and tax equivalent expenses(a)

Dividend 2003-04

Income Tax Equivalents

2003-04

Local Government Rate Equivalents

2003-04

$m $m $m

Public non financial corporations

ForestrySA ................................................................... 21.8 12.3 —

Industrial and Commercial Premises Corporation (b) ..... 0.2 — —

Land Management Corporation (c) ................................ 51.5 11.5 —

Lotteries Commission of South Australia (d) ................. 74.1 7.5 —

Public Trustee ............................................................... 1.4 0.4 —

SA Government Employee Residential Properties........ 1.2 — —

SA Water Corporation................................................... 174.1 87.6 1.0

TransAdelaide (e) ........................................................... 2.3 -0.6 0.4

West Beach Trust ......................................................... — 0.6 —

Subtotal 326.5 119.2 1.5

Public financial corporations

HomeStart Finance (f) ...................................................... 5.0 1.3 —

Motor Accident Commission (g) ........................................ 5.0 — —

South Australian Asset Management Corporation........... 58.5 — —

South Australian Government Financing Authority.......... 19.0 6.8 —

Subtotal 87.5 8.1 —

________---- Total 414.0 127.3 1.5

(a) Table 3.1 includes only those PNFCs and PFCs that affect general government net lending through dividends, income tax equivalents and local government rate equivalents. Amounts included in Table 3.1 are presented on an accrual basis. The table and commentary totals may not add due to rounding.

(b) The Industrial and Commercial Premises Corporation was dissolved and its assets and liabilities were transferred to and vested in or attached to Land Management Corporation on 1 December 2003.

(c) Land Management Corporation paid a special dividend of $50 million in 2003-04 to repatriate past earnings.

(d) The State Lotteries Act 1966 prescribes distributions rather than dividends. The distributions (inclusive of State Gambling Tax) and income tax equivalents for the Lotteries Commission of South Australia included in this table are directed to the Hospitals Fund and the Recreation and Sport Fund.

(e) Transadelaide recorded a loss from ordinary activities in 2003-04, largely due to write-downs in investments. TransAdelaide therefore raised a negative tax equivalent expense, in line with tax effect accounting principles.

(f) In accordance with the Housing and Urban Development (Administrative Arrangements) Act 1995 distributions are paid to the Minister for Human Services and reallocated to other housing priorities.

(g) The distribution from the Motor Accident Commission in 2003-04 is from non CTP activities.

3.2

APPENDIX A

UNIFORM PRESENTATION FRAMEWORK TABLES

Table A.1 General government sector operating statement___________________________________________________________________________________________________________________________________________________________________________________________________________

2003-04Estimate at

2004-05Budget

$m

2003-04Outcome

$m

GFS revenueTaxation revenue 2 783 2 806Current grants 4 916 4 906Capital grants 165 191Sales of goods and services 1 049 1 165Interest income 159 172Other 722 715

Total revenue 9 793 9 955lessGFS expensesGross operating expenses Employee expenses 4 271 4 313 Depreciation 427 435 Other operating expenses 2 310 2 305Nominal superannuation interest expense 354 354Other interest expenses 269 253Other property expenses — — Current transfers 1 868 1 894Capital transfers 29 16

Total expenses 9 528 9 570equalsGFS net operating balance 264 385

lessNet acquisition of non-financial assetsPurchases of non-financial assets 563 530less Sales of non-financial assets 138 124less Depreciation 427 435plus Change in inventories 2 -10plus Other movements in non-financial assets — —

equals Total net acquisition of non-financial assets — -38equalsGFS net lending 264 424

A.1

APPENDIX A

Table A.2 Public non-financial corporations (public trading enterprises) sectoroperating statement___________________________________________________________________________________________________________________________________________________________________________________________________________

2003-04Estimate at

2004-05Budget

$m

2003-04Outcome

$m

GFS revenueTaxation revenue — — Current grants 541 550Capital grants 17 24Sales of goods and services 1 314 1 550Interest income 16 20Other 70 43

Total revenue 1 959 2 186lessGFS expensesGross operating expenses Employee expenses 199 183 Depreciation 208 216 Other operating expenses 1 051 1 214Nominal superannuation interest expense — — Other interest expenses 143 129Other property expenses 361 380Current transfers 27 37Capital transfers 6 —

Total expenses 1 994 2 159equalsGFS net operating balance -35 27

lessNet acquisition of non-financial assetsPurchases of non-financial assets 399 369less Sales of non-financial assets 104 89less Depreciation 208 216plus Change in inventories — 7plus Other movements in non-financial assets — —

equals Total net acquisition of non-financial assets 88 72equalsGFS net lending -123 -44

A.2

APPENDIX A

Table A.3 Non-financial public sector operating statement___________________________________________________________________________________________________________________________________________________________________________________________________________

2003-04Estimate at

2004-05Budget

$m

2003-04Outcome

$m

GFS revenueTaxation revenue 2 609 2 629Current grants 4 917 4 909Capital grants 182 215Sales of goods and services 2 224 2 446Interest income 117 125Other 430 382

Total revenue 10 478 10 707lessGFS expensesGross operating expenses Employee expenses 4 432 4 496 Depreciation 635 651 Other operating expenses 3 079 3 072Nominal superannuation interest expense 354 354Other interest expenses 353 315Other property expenses 6 15Current transfers 1 355 1 375Capital transfers 35 16

Total expenses 10 248 10 294equals

GFS net operating balance 230 413lessNet acquisition of non-financial assetsPurchases of non-financial assets 952 898less Sales of non-financial assets 231 211less Depreciation 635 651plus Change in inventories 2 -3plus Other movements in non-financial assets — —

equals Total net acquisition of non-financial assets 88 33equalsGFS net lending 142 379

A.3

APPENDIX A

Table A.4 Public financial corporations sector operating statement___________________________________________________________________________________________________________________________________________________________________________________________________________

2003-04Outcome

$m

GFS revenueTaxation revenue — Current grants 32Capital grants — Sales of goods and services 843Interest income 938Other 34

Total revenue 1 847lessGFS expensesGross operating expenses Employee expenses 33 Depreciation 2 Other operating expenses 413Nominal superannuation interest expense — Other interest expenses 840Other property expenses 96Current transfers 375Capital transfers —

Total expenses 1 758equalsGFS net operating balance 88

lessNet acquisition of non-financial assetsPurchases of non-financial assets 2less Sales of non-financial assets 4less Depreciation 2plus Change in inventories -2plus Other movements in non-financial assets —

equals Total net acquisition of non-financial assets -6equalsGFS net lending 94

A.4

APPENDIX A

Table A.5 General government sector balance sheet___________________________________________________________________________________________________________________________________________________________________________________________________________

2003-04Estimate at

2004-05Budget

$m

2003-04Outcome

$m

AssetsFinancial assets Cash and deposits 2 247 2 178 Advances paid 1 142 1 133 Investments, loans and placements 98 154 Other non-equity assets 287 386 Equity 11 457 11 811

Total financial assets 15 231 15 661Non-financial assets Land and fixed assets 11 747 11 835 Other non-financial assets 87 83

Total non-financial assets 11 834 11 917

Total assets 27 065 27 579

LiabilitiesDeposits held 356 309Advances received 734 733Borrowing 2 780 2 648Unfunded superannuation liability 5 756 5 668Other employee entitlements and provisions 1 413 1 495Other non-equity liabilities 800 967

Total liabilities 11 838 11 819

Net worth 15 227 15 760

Net financial worth (a) 3 393 3 842Net debt (b) 382 224(a) Net financial worth equals total financial assets minus total liabilities.(b) Net debt equals the sum of deposits held, advances received and borrowing, minus the sum of cash and deposits, advances paid, and investments, loans and placements.

A.5

APPENDIX A

Table A.6 Public non-financial corporations (public trading enterprises) sectorbalance sheet___________________________________________________________________________________________________________________________________________________________________________________________________________

2003-04Estimate at

2004-05Budget

$m

2003-04Outcome

$m

AssetsFinancial assets Cash and deposits 224 263 Advances paid 19 16 Investments, loans and placements 12 10 Other non-equity assets 186 201 Equity 21 26

Total financial assets 463 516Non-financial assets Land and fixed assets 13 255 13 450 Other non-financial assets 44 51



LiabilitiesDeposits held 9 5Advances received 965 963Borrowing 1 422 1 382Unfunded superannuation liability — — Other employee entitlements and provisions 69 70Other non-equity liabilities 344 379


Net worth 10 952 11 219

Net financial worth (a) -2 347 -2 283Net debt (b) 2 140 2 061

(a) Net financial worth equals total financial assets minus total liabilities.(b) Net debt equals the sum of deposits held, advances received and borrowing, minus the sum of cash and deposits, advances paid, and investments, loans and placements.

A.6

APPENDIX A

Table A.7 Non-financial public sector balance sheet___________________________________________________________________________________________________________________________________________________________________________________________________________

2003-04Estimate at

2004-05Budget

$m

2003-04Outcome

$m

AssetsFinancial assets Cash and deposits 2 317 2 250 Advances paid 196 186 Investments, loans and placements 111 164 Other non-equity assets 279 356 Equity 526 618

Total financial assets 3 429 3 574Non-financial assets Land and fixed assets 25 002 25 285 Other non-financial assets 31 24



LiabilitiesDeposits held 211 122Advances received 734 733Borrowing 4 202 4 030Unfunded superannuation liability 5 756 5 668Other employee entitlements and provisions 1 482 1 586Other non-equity liabilities 850 984


Net worth 15 227 15 760

Net financial worth (a) -9 806 -9 550Net debt (b) 2 522 2 285(a) Net financial worth equals total financial assets minus total liabilities.(b) Net debt equals the sum of deposits held, advances received and borrowing, minus the sum of cash and deposits, advances paid, and investments, loans and placements.

A.7

APPENDIX A

Table A.8 Public financial corporations sector balance sheet___________________________________________________________________________________________________________________________________________________________________________________________________________

2003-04Outcome

$m

AssetsFinancial assets Cash and deposits 199 Advances paid 5 100 Investments, loans and placements 5 307 Other non-equity assets 263 Equity 821

Total financial assets 11 690Non-financial assets Land and fixed assets 37 Other non-financial assets —

Total non-financial assets 37

Total assets 11 727

LiabilitiesDeposits held 2 969Advances received — Borrowing 5 158Unfunded superannuation liability — Other employee entitlements and provisions 7Other non-equity liabilities 3 112

Total liabilities 11 246

Net worth 481

Net financial worth (a) 444Net debt (b) -2 478(a) Net financial worth equals total financial assets minus total liabilities.(b) Net debt equals the sum of deposits held, advances received and borrowing, minus the sum of cash and deposits, advances paid, and investments, loans and placements.

A.8

APPENDIX A

Table A.9 General government sector cash flow statement___________________________________________________________________________________________________________________________________________________________________________________________________________

2003-04Estimate at

2004-05Budget

$m

2003-04Outcome

$m

Cash receipts from operating activitiesTaxes received 2 783 2 802Receipts from sales of goods and services 1 046 1 070Grants received 5 043 5 054Other receipts 863 973

Total receipts 9 736 9 899

Cash payments for operating activitiesPayment for goods and services -6 746 -6 772Grants and subsidies paid -1 861 -1 858Interest paid -268 -258Other payments -57 -107

Total payments -8 932 -8 996

Net cash flows from operating activities 804 903

Net cash flows from investmentsin non-financial assetsSales of non-financial assets 138 124Purchases of non-financial assets (a) -560 -506

Net cash flows from investments -423 -382in non-financial assets

Net cash flows from investments in financialassets for policy purposes (b) 29 31

Net cash flows from investments in financialassets for liquidity purposes -10 -27

Net cash flows from financing activitiesAdvances received (net) -46 -46Borrowing (net) -208 -299Deposits received (net) -38 -22Dividends paid — — Other financing (net) — —

Net cash flows from financing activities -292 -367

Net increase in cash held 108 159

Net cash from operating activities and investmentsin non-financial assets 381 522Distributions paid — — Finance leases and similar arrangements (c) — — Surplus 381 522(a) The ABS disaggregates this item into new and secondhand non-financial assets.(b) Includes equity acquisitions, disposals and privatisations (net).(c) Finance leases are shown as a negative as they are deducted in compiling the surplus/deficit.

A.9

APPENDIX A

Table A.10 Public non-financial corporations (public trading enterprises) sectorcash flow statement___________________________________________________________________________________________________________________________________________________________________________________________________________

2003-04Estimate at

2004-05Budget

$m

2003-04Outcome

$m

Cash receipts from operating activitiesTaxes received — — Receipts from sales of goods and services 1 369 1 564Grants received 542 547Other receipts 50 58


Cash payments for operating activitiesPayment for goods and services -1 091 -1 264Grants and subsidies paid -55 -23Interest paid -149 -143Other payments -169 -186


Net cash flows from operating activities 498 553



Net cash flows from investments in financialassets for policy purposes (b) -5 1


Net cash flows from financing activitiesAdvances received (net) -24 -26Borrowing (net) 111 66Deposits received (net) — — Dividends paid -336 -330Other financing (net) — —


Net increase in cash held -37 2

Net cash from operating activities and investmentsin non-financial assets 220 297Distributions paid 336 330Finance leases and similar arrangements (c) — — Surplus -116 -34(a) The ABS disaggregates this item into new and secondhand non-financial assets.(b) Includes equity acquisitions, disposals and privatisations (net).(c) Finance leases are shown as a negative as they are deducted in compiling the surplus/deficit.

A.10

APPENDIX A

Table A.11 Non-financial public sector cash flow statement ___________________________________________________________________________________________________________________________________________________________________________________________________________

2003-04Estimate at

2004-05Budget

$m

2003-04Outcome

$m

Cash receipts from operating activitiesTaxes received 2 609 2 628Receipts from sales of goods and services 2 277 2 371Grants received 5 045 5 053Other receipts 511 628


Cash payments for operating activitiesPayment for goods and services -7 703 -7 763Grants and subsidies paid -1 376 -1 334Interest paid -359 -346Other payments -38 -110


Net cash flows from operating activities 966 1 126





Net cash flows from financing activitiesAdvances received (net) -46 -46Borrowing (net) -98 -233Deposits received (net) -1 -24Dividends paid — — Other financing (net) — —


Net increase in cash held 107 160

Net cash from operating activities and investmentsin non-financial assets 265 488Distributions paid — — Finance leases and similar arrangements (c) — — Surplus 265 488(a) The ABS disaggregates this item into new and secondhand non-financial assets.(b) Includes equity acquisitions, disposals and privatisations (net).(c) Finance leases are shown as a negative as they are deducted in compiling the surplus/deficit.

A.11

APPENDIX A

Table A.12 Public financial corporations sector cash flow statement ___________________________________________________________________________________________________________________________________________________________________________________________________________

2003-04Outcome

$m

Cash receipts from operating activitiesTaxes received — Receipts from sales of goods and services 873Grants received 21Other receipts 226

Total receipts 1 120

Cash payments for operating activitiesPayment for goods and services -75Grants and subsidies paid — Interest paid -48Other payments -640

Total payments -763

Net cash flows from operating activities 357

Net cash flows from investmentsin non-financial assetsSales of non-financial assets 4Purchases of non-financial assets (a) -1

Net cash flows from investments 2in non-financial assets


Net cash flows from investments in financialassets for liquidity purposes -328

Net cash flows from financing activitiesAdvances received (net) — Borrowing (net) -218Deposits received (net) 356Dividends paid -97Other financing (net) —

Net cash flows from financing activities 41

Net increase in cash held -1 086

Net cash from operating activities and investmentsin non-financial assets 359Distributions paid 97Finance leases and similar arrangements (c) — Surplus 262(a) The ABS disaggregates this item into new and secondhand non-financial assets.(b) Includes equity acquisitions, disposals and privatisations (net).(c) Finance leases are shown as a negative as they are deducted in compiling the surplus/deficit.

A.12

APPENDIX A

Table A.13 General government sector taxes___________________________________________________________________________________________________________________________________________________________________________________________________________

2003-04Estimate at

2004-05Budget

$m

2003-04Outcome

$m

Taxes on employers' payroll and labour force 712 714

Taxes on propertyLand taxes 203 198Stamp duties on financial and capital transactions 670 697Financial institutions' transaction taxes 60 60Other (a) 114 116

Total 1 046 1 071Taxes on the provision of goods and servicesExcises and levies 5 4Taxes on gambling 377 379Taxes on insurance 273 265

Total 655 648Taxes on use of goods and performance of activitiesMotor vehicle taxes 369 372

Total 369 372

Total GFS taxation revenue 2 783 2 806

(a) Excludes taxes paid by general government units.

A.13

APPENDIX A

Table A.14 General government sector expenses by function (a) (b) (c) ($ million)

2003-04 2003-04Estimate at Outcome

2004-05Budget

General Public Services 298 329Government superannuation benefits 8 —Other general public services 290 329

Defence — —

Public order and safety 898 900Police and fire protection services 512 521Law courts and legal services 212 203Prisons and corrective services 142 142Other public order and safety 32 34

Education 2 422 2 420Primary and secondary education 1 944 1 937Tertiary education 346 353Pre-school education and education not definable by level 109 110Transportation of students 18 18Education n.e.c. 5 2

Health 2 571 2 563Acute care institutions 1 975 2 073Mental health institutions na naNursing homes for the aged na naCommunity health services 274 255Public health services 310 228Pharmaceuticals, medical aids and appliances na naHealth research na naHealth administration n.e.c. 13 7

Social security and welfare 590 545Social security 126 102Welfare services 405 385Social security and welfare services n.e.c. 60 58

Housing and community amenities 635 710Housing and community development 325 368Water supply 122 138Sanitation and protection of the environment 173 182Other community amenities 16 22

Recreation and culture 241 255Recreation facilities and services 109 113Cultural facilities and services 119 131Broadcasting and film production 6 4Recreation and culture n.e.c. 7 7

A.14

APPENDIX A

(a) The 2003-04 Estimate at 2003-04 Budget and the 2003-04 Estimate at 2004-05 Budget differ from the estimates provided in the 2003-04 Budget and the 2004-05 Budget. The variations are due to the correction of classification errors discovered subsequent to the 2004-05 Budget.

(b) Some functional classifications are not readily distinguishable at agency level. For example in health, mental health cannot be reliably separated from acute care institutions. Similarly nursing homes for the aged, pharmaceuticals and health research cannot be easily separated from the other health categories. Those instances are denoted as not available (na).

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

Table A.14 General government sector expenses by function (a) (b) (c) (continued)


2004-05Budget

Fuel and energy 105 87Fuel affairs and services 82 69Electricity and other energy 2 2Fuel and energy n.e.c. 21 16

Agriculture, forestry, fishing and hunting 155 189Agriculture 151 175Forestry, fishing and hunting 4 14

Mining and mineral resources other than fuels; manufacturing; 111 87and construction

Mining and mineral resources other than fuels 16 7Manufacturing 6 4Construction 89 76

Transport and communications 613 624Road transport 296 316Water transport 29 13Rail transport 8 2Air transport — —Pipelines na naOther transport 241 280Communications 38 13

Other economic affairs 244 219Storage, saleyards and markets na naTourism and area promotion 37 40Labour and employment affairs 42 36Other economic affairs 165 143

Other purposes 645 642Public debt transactions 235 235General purpose inter-government transactions — —Natural disaster relief — —Nominal superannuation interest expense 354 354Other purposes n.e.c. 56 53

Total GFS expenses 9 528 9 570

A.15

APPENDIX A

Table A.15 General government sector capital expenditure by function ($million)

Table A.16 Reconciliation of general government sector net worth (statement of other economic flows) ($million)

(a) The unfunded superannuation liability increased by $1 223 million in 2003-04. Excluding the nominal superannuation interest expense of $354 million, which is included in the net operating balance, and the past service superannuation cash payment ($236 million), which does not impact on net worth, the movement in the unfunded superannuation liability was $1 106 million.


2004-05Budget

General public services 137 122Defence — —Public order and safety 71 53Education 49 44Health 94 113Social security and welfare 5 5Housing and community amenities 21 21Recreation and culture 18 18Fuel and energy — —Agriculture, forestry, fishing and hunting 6 4Mining, manufacturing and construction 1 —Transport and communications 156 125Other economic affairs — —Other purposes 1 —Total capital expenditure 560 506

2003-04Outcome


Change in net worth from operating transactions:Net operating balance 385

Change in net worth from other economic flows:Movement in net assets of PFCs 196Movement in net assets of PNFCs 1 031Movement of unfunded superannuation liability (a) -1 106

Inclusion of SA Ambulance Service net worth for the first time 38

Other adjustments -72

Total other economic flows 87


A.16

APPENDIX B

LOAN COUNCIL ALLOCATION REPORT

The Australian Loan Council – a ministerial council comprising the Commonwealth, State and Territory Treasurers – was established in 1927 to coordinate public sector borrowing in Australia. It is now primarily concerned with ensuring the transparency and accountability of public sector borrowing rather than, as in the past, securing adherence to strict borrowing limits.

Loan Council Allocation (LCA) nominations, required in March each year, are intended to provide an indication of each government’s probable call on financial markets over the forthcoming financial year. The Loan Council, having regard to each jurisdiction’s fiscal position and reasonable infrastructure requirements, along with the macroeconomic implications of the aggregate figure, then considers the nominations at its annual meeting.

Nominated LCAs for 2003-04, for all jurisdictions and in aggregate, were reviewed and endorsed by the 142nd meeting of the Australian Loan Council on 28 March 2003.

Following the endorsement of LCA nominations, jurisdictions are further required to update their nominated LCAs at budget time, for changes in economic parameters and policy decisions, and also provide an LCA outcome at the end of the financial year. A tolerance limit of 2 per cent of total public sector revenue, set at nomination time, applies between both the nomination and budget, and the budget and outcome LCAs. If the tolerance limit is exceeded, the Loan Council must be notified and a report detailing the reasons for change released publicly.

South Australia’s Budget and outcome LCAs for 2003-04 are shown in Table B.1. The table is prepared in accordance with the requirements of the accrual UPF, endorsed by Loan Council in March 2000.

As Table B.1 indicates, South Australia recorded an LCA surplus of $917 million for 2003-04. This is a significant increase over the 2003-04 Budget (May 2003) estimated surplus of $197 million, due primarily to higher than anticipated general government revenue receipts and better than anticipated returns from FundsSA (which impact on the superannuation memorandum item). On the basis of these estimates, South Australia’s 2003-04 LCA outcome will exceed the 2 per cent of total revenue tolerance limit applied to the May 2003 budget-time LCA.

B.1

APPENDIX B

Table B.1 Loan Council Allocation 2003-04(a)

2003-04 Estimate at

2003-04 Budget

2003-04 Outcome

$m $m

General government sector cash deficit/surplus................................................ -83 -522

PNFC sector cash deficit/surplus....................................................................... 112 34

Total non-financial public sector cash deficit/surplus(b) ...................................... 29 -488

Net cash flows from investments in financial assets for policy purposes(c) ........ 7 -6

Adjusted total non-financial public sector cash deficit/surplus ........................... 36 -494

Memorandum items(d)

Operating leases(e) ......................................................................................... -33 -14

Recourse asset sales ..................................................................................... — —

Superannuation(f) ............................................................................................ -238 -533

Local government ........................................................................................... 18 27

Home finance schemes .................................................................................. 20 97

Total memorandum items.................................................................................. -233 -423

LCA deficit/surplus(g)(h)....................................................................................... -197 -917

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

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

(c) This item is the negative of net advances paid under a cash accounting framework.

(d) Excludes universities.

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

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

(g) The 2 per cent of total revenue tolerance limit around South Australia’s 2003-04 LCA is $191 million.

(h) South Australia had no infrastructure projects with private sector involvement that met the recognition criteria for 2003-04.

B.2

APPENDIX C

CONSOLIDATED ACCOUNT

Table C.1: Summary of receipts and payments

2003-04 2003-04 Budget Outcome $000 $000

Receipts

Taxation..........................................................................................................................

Commonwealth General Purpose Grants......................................................................

Commonwealth Specific Purpose Grants......................................................................

Contributions from State Undertakings..........................................................................

Fees and Charges..........................................................................................................

Recoveries......................................................................................................................

Royalties.........................................................................................................................

Other Receipts ...............................................................................................................

2 305 710

3 103 900

47 742

491 436

72 752

32 117

74 400

208 915

2 647 733

3 152 395

44 545

505 103

106 243

20 298

75 177

187 409

Total Receipts ............................................................................................................... 6 336 972 6 738 903

Payments

Appropriation Act ...........................................................................................................

Specific Appropriation Authorised in Various Acts........................................................

6 273 796

97 492

6 306 674

102 775

Total Payments............................................................................................................. 6 371 288 6 409 449

Consolidated Account Surplus (Deficit)............................................................... (34 316) 329 455

Repayment Of Debt

The surplus for 2003-04 has been applied, pursuant to section 16(4) (a) of the Public Finance and Audit Act 1987, to reduce the level of debt serviced from Consolidated Account

C.1

APPENDIX C

Table C.2: Estimates of receipts

2003-04 2003-04 Budget Outcome

$000 $000

Taxation

Payroll tax................................................................................................................. 818 700 855 731 Commonwealth places mirror payroll tax ............................................................... 14 300 14 974 Stamp duties ............................................................................................................ 833 500 1 120 623 Commonwealth places mirror stamp duties ........................................................... 1 100 1 400 Land tax.................................................................................................................... 187 700 199 781 Commonwealth places mirror land tax .................................................................... 700 705 Debits tax.................................................................................................................. 59 400 59 901 Commonwealth places mirror debits tax ................................................................. 400 414 Other taxes on property ........................................................................................... 10 — River Murray Levy .................................................................................................... 15 900 12 773 Gaming machines tax .............................................................................................. 274 900 279 602 Contribution from Lotteries Commission ................................................................. 71 900 75 616 Contribution from Casino operations ....................................................................... 18 400 17 079 Contribution from South Australian Totalizator Agency Board ............................... 6 400 6 575 Contribution from on-course totalizators, bookmakers and small lotteries ............. 2 200 2 306 Recoup from Recreation and Sport Fund................................................................ 200 253 Total taxation receipts ........................................................................................... 2 305 710 2 647 733 Commonwealth general purpose grants Competition grants ................................................................................................... 48 100 40 679 GST revenue grants................................................................................................. 3 004 100 3 146 431 Transitional grants ................................................................................................... 51 700 — Transitional grant overpayment/recovery (a) ............................................................. — -34 716 Total Commonwealth general purpose grants ................................................... 3 103 900 3 152 395 Commonwealth specific purpose grants Companies code — fees.......................................................................................... 10 900 11 673 Concessions to pensioners and others.................................................................... 18 297 18 297 Debt redemption assistance .................................................................................... 3 770 3 773 SA Infrastructure Corporation .................................................................................. 3 500 — Legal Aid................................................................................................................... 10 802 10 802 Native Title Legislation — administration................................................................. 473 — Total Commonwealth specific purpose grants .................................................. 47 742 44 545 Contributions from State undertakings Adelaide Convention Centre — Dividend ............................................................................................................... — 355 Administrative and Information Services (excluding SAGERP) — Dividend ............................................................................................................... 50 805 70 255 Income tax equivalent .......................................................................................... 1 189 1 294 Local government rate equivalent........................................................................ 709 5

C.2

APPENDIX C

Table C.2: Estimates of receipts (continued)

2003-04 2003-04 Budget Outcome $000 $000

Forestry SA — Dividend ............................................................................................................... 20 873 21 793 Income tax equivalent .......................................................................................... 9 871 11 313 Local government rate equivalent........................................................................ 1 — Funds SA — Local government rate equivalent........................................................................ 137 170 HomeStart Finance — Income tax equivalent .......................................................................................... 1 600 2 581 Industrial and Commercial Premises Corporation — Dividend ............................................................................................................... 415 — Income tax equivalent .......................................................................................... 23 — Land Management Corporation — Dividend ............................................................................................................... 51 479 51 479 Income tax equivalent .......................................................................................... 1 893 1 591 Local government rate equivalent........................................................................ 105 — Lotteries Commission — Additional lotteries dividend ................................................................................. 3 479 — Income tax equivalent .......................................................................................... 6 100 8 012 Local government rate equivalent........................................................................ — 35 Motor Accident Commission — Dividend ............................................................................................................... 5 000 5 000 Police Security Services — Income tax equivalent .......................................................................................... 97 101 Public Trustee Office — Dividend ............................................................................................................... 1 215 1 176 Income tax equivalent .......................................................................................... 311 595 Local government rate equivalent........................................................................ 26 29 SA Water Corporation — Dividend ............................................................................................................... 174 509 164 110 Income tax equivalent .......................................................................................... 62 313 72 091 Local government rate equivalent........................................................................ 900 1 133

South Australian Asset Management Corporation — Dividend ............................................................................................................... 58 500 58 500 South Australian Government Captive Insurance Corporation — Income tax equivalent .......................................................................................... — 171 South Australian Government Employee Residential Properties — Dividend ............................................................................................................... 1 156 1 156 Income tax equivalent .......................................................................................... 465 – Local government rate equivalent........................................................................ 938 — South Australian Government Financing Authority — Dividend ............................................................................................................... 18 252 19 000 Income tax equivalent .......................................................................................... 7 500 6 800 Trade and Economic Development — Dividend ............................................................................................................... 901 —

C.3

APPENDIX C


2003-04 2003-04 Budget Outcome $000 $000

TransAdelaide — Dividend ............................................................................................................... 3 521 2 296 Income tax equivalent .......................................................................................... 875 — Local government rate equivalent........................................................................ 83 374 Transport Services — Dividend ............................................................................................................... 4 113 2 961 Income tax equivalent .......................................................................................... 1 457 — Local government rate equivalent........................................................................ 82 98 West Beach Trust — Income tax equivalent .......................................................................................... 543 628 Total contributions from State undertakings ..................................................... 491 436 505 103 Fees and charges Auditor-General’s Department — fees for audit and other sundry receipts ............ 8 423 8 530 Community Road Safety Fund related infringement notices................................... — 32 682 Court and Probate fees............................................................................................ 16 559 15 553 Court fines ................................................................................................................ 7 456 14 248 Guarantee fees ........................................................................................................ 17 210 17 370 Infringement notice schemes — expiation fees....................................................... 22 080 16 772 Sundry fees .............................................................................................................. 24 7 Water, Land and Biodiversity Conservation — excess water charges ................... 1 000 1 080 Total fees and charges .......................................................................................... 72 752 106 243 Recoveries Child Abuse Protection Program — intra sector grants received............................ 200 200 Community Development Fund — St John Australia SA Inc.................................. — 100 Community Emergency Service Fund..................................................................... 475 — Contingency provisions — recoveries ..................................................................... 35 6 Contribution to the cost of private plated vehicles................................................... 10 13 Essential Services Commission of SA..................................................................... 3 281 4 924 Helicopter service — recovery of costs and sponsorships...................................... 2 246 2 114 Independent Gaming Corporation contribution to Gamblers Rehabilitation Fund.. 1 500 1 500 Legislature — sale of publications ........................................................................... 550 187 Light motor vehicle fleet — rental payments recovery ........................................... 4 300 4 855 National Tax Equivalent Program............................................................................ 12 — Qualco–Sunlands Ground Water............................................................................. — 790

Return of Commonwealth places mirror taxes collected (b) ..................................... 16 500 — Return of deposit account balances ........................................................................ — 2 961

Return of Racing Industry guarantee funding — SATAB — 157

Sale of evidence/transcripts..................................................................................... 1 235 1 281 Sale of Government Gazette ................................................................................... 150 — Sundry recoupment.................................................................................................. 115 192 Unclaimed monies.................................................................................................... 1 508 1 018 Total recoveries...................................................................................................... 32 117 20 298

C.4

APPENDIX C


2003-04 2003-04 Budget Outcome $000 $000

Royalties Department of Primary Industries and Resources ............................................... 74 400 75 177 Total royalties ..................................................................................................... 74 400 75 177 Other receipts Interest on investments......................................................................................... 97 000 86 092 Interest recoveries from — General government entities............................................................................. 14 543 13 024 Public non-financial corporations...................................................................... 45 843 47 209 Universities........................................................................................................ 1 418 1 418 Other.................................................................................................................. 97 465 Repayment of advances —

Adelaide Festival Centre Trust.......................................................................... 160 160 Administrative and Information Services........................................................... — 1 730 Human Services ................................................................................................ 1 073 305 Land Management Corporation ........................................................................ 7 270 30 Lotteries Commission........................................................................................ 1 452 1 452 Minister for Education and Children’s Services ................................................ 1 500 — Minister for Industry, Trade and Regional Development .................................. 5 223 5 223 Office of Public Transport.................................................................................. 1 100 1 100 Primary Industries and Resources.................................................................... 1 017 55 Renmark Irrigation Trust.................................................................................... 101 86 South Australian Government Employee Residential Properties..................... 1 193 1 193 SA Country Arts Trust ....................................................................................... — 20

South Australian Housing Trust ........................................................................ 16 951 16 967 South Australian Tourism Commission............................................................. 139 129

TransAdelaide ................................................................................................... 5 381 5 381 Transport Services ............................................................................................ 125 — West Beach Trust.............................................................................................. 136 —

Other.................................................................................................................. 5 163 Other

Sale of land and buildings ................................................................................. 7 188 5 205 Total other receipts............................................................................................. 208 915 187 409

Total Consolidated Account Receipts.............................................................. 6 336 972 6 738 903

(a) Recovery of a $56.8 million overpayment in the 2002-03 year is partly offset by a $22.0 million overpayment in 2003-04.

(b) Refer to the Taxation Receipts for details of Commonwealth places mirror taxes collected for the 2003-04 financial year.

C.5

APPENDIX C

Table C.3: Estimates of payments

2003-04 2003-04 Budget Outcome $000 $000

Legislature

Legislative Council ................................................................................................ 3 786 3 456 House of Assembly ............................................................................................... 6 092 5 500 Joint Parliamentary Services ................................................................................ 8 672 7 205

Premier And Cabinet

Department of the Premier and Cabinet............................................................... 40 978 42 100 Administered Items for the Department of the Premier and Cabinet ................... 6 361 5 890 State Governor’s Establishment ........................................................................... 2 503 2 503 Arts SA.................................................................................................................... 89 337 89 866

Tourism South Australian Tourism Commission................................................................. 43 159 45 278 Minister for Tourism............................................................................................... 4 862 4 862

Auditor-General

Auditor-General’s Department .............................................................................. 9 682 9 782 Administered Items for the Auditor-General’s Department .................................. 766 768

Treasury And Finance

Department of Treasury and Finance................................................................... 38 639 38 975 Administered Items Department of Treasury and Finance................................... 1 011 298 1 026 890 Independent Gambling Authority .......................................................................... 1 386 1 439

Trade And Economic Development Department of Trade and Economic Development .............................................. 35 370 35 383 Department for Business, Manufacturing and Trade............................................ 77 440 77 440 Administered Items for the Department for Business, Manufacturing and

Trade.................................................................................................................

2 538

3 586 Office of Economic Development.......................................................................... 4 922 4 922

Primary Industries And Resources

Department of Primary Industries and Resources ............................................... 108 803 107 955 Administered Items for Department of Primary Industries and Resources.......... 88 619 90 819

Justice

Department for Correctional Services.................................................................... 117 694 120 162 South Australia Police............................................................................................ 342 648 346 661 Administered Items for Police and Emergency Services ..................................... 49 151 48 812 Courts Administration Authority ............................................................................ 62 789 62 818 State Electoral Office ............................................................................................ 2 065 1 959 Attorney-General’s Department ............................................................................ 57 981 61 008 Administered Items for Attorney-General’s Department ...................................... 45 902 37 125

Human Services

Department of Human Services............................................................................ 1 584 149 1 654 065 Administered Items for Department of Human Services ...................................... 107 680 113 980

Education And Children’s Services

Department of Education and Children’s Services............................................... 1 419 931 1 409 461 Administered items for Department of Education and Children’s Services ......... 129 443 129 140

C.6

APPENDIX C

Table C.3: Estimates of payments (continued)

2003-04 2003-04 Budget Outcome $000 $000

Further Education, Employment, Science And Technology

Department of Further Education, Employment, Science and Technology......... 220 331 221 714 Environment And Conservation And The River Murray

Department for Environment and Heritage .......................................................... 92 651 99 985 Administered items for Department for Environment and Heritage ...................... 3 838 4 338 Environment Protection Authority ......................................................................... 8 475 8 718 Department of Water, Land and Biodiversity Conservation ................................. 54 691 56 165 Administered Items for Department of Water, Land and Biodiversity

Conservation.....................................................................................................

38 878

35 968 Transport And Urban Planning

Planning SA........................................................................................................... 16 861 14 969 Administered Items for Planning SA..................................................................... 958 1 217 Transport Services ................................................................................................ 9 913 20 884 Administrative Items for Transport Services......................................................... 13 180 38 108 Transport Planning................................................................................................ 2 304 2 314 Passenger Transport Board.................................................................................. 87 000 87 000 Office of Public Transport...................................................................................... 80 646 82 853 Office of Local Government .................................................................................. 2 670 2 798 Administered Items for the Office of Local Government....................................... 512 512 TransAdelaide ....................................................................................................... 5 350 3 754 Offices for Sustainable Social, Environmental and Economic Development....... 869 869

Administrative And Information Services

Department for Administrative and Information Services..................................... 124 769 29 443 Administered Items for the Department for Administrative and Information

Services ............................................................................................................

5 254

5 254

Total Payments Appropriated for Departments and Ministers.......................... 6 273 796 6 306 674

Payments for which specific appropriation is authorised in various Acts ...... 97 492 102 775

Total Consolidated Account payments ................................................................ 6 371 288 6 409 449

C.7

APPENDIX C

Table C.4: Appropriation for other purposes

2003-04 2003-04 Budget Outcome $000 $000

Payments for which specific appropriation is authorised in various Acts

Salaries and Allowances Agent-General — Pursuant to Agent-General Act 1901 ......................................... 267 290 Auditor-General — Pursuant to Public Finance and Audit Act 1987....................... 209 216 Commissioner Of Police — Pursuant to Police Act 1998........................................ 231 284 Electoral Commissioner And Deputy Electoral Commissioner — Pursuant to

Electoral Act 1985 ................................................................................................

292

275 Employee Ombudsman—Pursuant to the Industrial and Employee Relations Act

1994......................................................................................................................89 107

Governor — Pursuant to Constitution Act 1934 ...................................................... 192 203 Judges — Pursuant to Remuneration Act 1990 —

Chief Justice......................................................................................................... 384 438 Judges.................................................................................................................. 12 728 13 208

Magistrates — Pursuant to Remuneration Act 1990 ............................................... 8 192 9 956 Members Of Various Standing Committees — Pursuant to Parliamentary

Remuneration Act 1990 and Parliamentary Committees (Miscellaneous) Act 1991 ....................................................................................................................

612

489 Ombudsman—Pursuant to Ombudsman Act 1972................................................. 215 220 Parliamentary Salaries And Electorate And Expenses Allowances —

Ministers, Officers and Members of Parliament—Pursuant to Parliamentary Remuneration Act 1990 .......................................................................................

10 313

10 530

Senior Judge And Judges Of The Industrial Relations Commission — Pursuant to Remuneration Act 1990 ...................................................................................

1 212

2 189

Solicitor General — Pursuant to Solicitor-General Act 1972................................... 254 370 Valuer-General — Pursuant to Valuation of Land Act 1971.................................... 102 138 Total salaries and allowances .............................................................................. 35 292 38 913

Other Contributions For Injuries Suffered As A Result Of The Commission Of Criminal

Offences — Pursuant to Victims of Crime Act 2001 .......................................….

6 200

6 200 Electoral Districts Boundaries Commission — Pursuant to Constitution Act

1934 .................................................................................................................

—

12 First Home Owner Grant — Pursuant to First Home Owner Grant Act 2000 ......... 56 000 57 650 Total other............................................................................................................... 62 200 63 862

Total payments authorised by various Acts....................................................... 97 492 102 775

C.8

APPENDIX D

INTERGOVERNMENTAL AGREEMENT ON THE REFORM OF COMMONWEALTH-STATE

FINANCIAL RELATIONS

Pursuant to the Intergovernmental Agreement on the Reform of Commonwealth-State Financial Relations and in accordance with commitments provided to the Commonwealth and the agreed calculation methodology for the State’s Guaranteed Minimum Amount of funding, details of South Australian expenditure on the First Home Owners Scheme and revenue forgone from adjustments to gambling taxation arrangements for 2003-04 are shown in the following tables.

Table D.1 First Home Owners Scheme Expenditure

Outcome 2003-04

$

Original $7 000 scheme 57 389 866

Table D.2 Gambling Taxation Revenue Forgone

Outcome 2003-04

$

Gaming Machines in Hotels and Clubs 65 087 217

Casino 9 688 281

TAB 9 962 752

Lotteries Commission 12 473 644

On-course Totalizators 588 214

Bookmakers 234 786

Small Lotteries 987 888

TOTAL 99 022 782

D.1

APPENDIX E

SOUTH AUSTRALIAN STATE PUBLIC SECTOR ORGANISATIONS

Organisation Name

General Govt

Sector

Public Non-Financial Corporations

Sector

Financial Corporations

Sector

2007 World Police and Fire Games Corporation................................ *

Aboriginal Housing Authority ............................................................... *

Adelaide Cemeteries Authority ............................................................ *

Adelaide Convention Centre Corporation............................................ *

Adelaide Entertainments Corporation (trading as Adelaide Entertainment Centre) .......................................

*

Adelaide Festival Centre Trust ............................................................ *

Adelaide Festival Corporation ............................................................. *

Adelaide International Film Festival..................................................... *

Administrative and Information Services, Department for (a)................ *

Animal and Plant Control Commission ................................................ *

Arid Areas Catchment Water Management Board............................... *

Art Gallery Board, The......................................................................... *

Attorney-General’s Department........................................................... *

Auditor-General’s Department............................................................. *

Adelaide Children’s Performing Arts Company (trading as Windmill Performing Arts) .................................................

*

Bio Innovation SA................................................................................ *

Board of the Botanic Gardens and State Herbarium ........................... *

Carrick Hill Trust .................................................................................. *

Correctional Services, Department for ................................................ *

Country Fire Service Board ................................................................ *

Courts Administration Authority ........................................................... *

Dairy Authority of South Australia ........................................................ *

Distribution Lessor Corporation........................................................... *

Education Adelaide.............................................................................. *

Education and Children’s Services, Department of ............................. *

Emergency Services Administrative Unit............................................. *

Environment and Heritage, Department for ......................................... *

Environment Protection Authority ........................................................ *

Essential Services Commission .......................................................... *

Eyre Peninsula Catchment Water Management Board ....................... *

Further Education, Employment, Science and Technology, Department of......................................................................................

*

E.1

APPENDIX E

Organisation Name

General Govt

Sector


Sector


Sector

Generation Lessor Corporation ........................................................... *

History Trust of South Australia ........................................................... *

HomeStart Finance.............................................................................. *

House of Assembly.............................................................................. *

Human Services, Department of ......................................................... *

Independent Gambling Authority ......................................................... *

Information Industries Development Centre (trading as Playford Centre) ...............................................................

*

Joint Parliamentary Services............................................................... *

Justice, Department of ........................................................................ *

Land Management Corporation........................................................... *

Legislative Council .............................................................................. *

Libraries Board of South Australia....................................................... *

Lotteries Commission of South Australia............................................. *

Motor Accident Commission................................................................ *

Museum Board.................................................................................... *

Natural Gas Authority of South Australia ............................................. *

Northern Adelaide and Barossa Catchment Water Management Board...................................................................................................

*

Office of Public Transport .................................................................... *

Onkaparinga Catchment Water Management Board........................... *

Outback Areas Community Development Trust................................... *

Patawalonga Catchment Water Management Board........................... *

Premier and Cabinet, Department of the............................................. *

Primary Industries and Resources, Department of.............................. *

Public Trustee...................................................................................... *

RESI Corporation ................................................................................ *

River Murray Catchment Water Management Board........................... *

Senior Secondary Assessment Board of South Australia .................... *

South Australia Police (aka South Australian Police Department, SAPOL)............................

*

South Australian Ambulance Service................................................... *

South Australian Asset Management Corporation............................... *

South Australian Community Housing Authority .................................. *

South Australian Country Arts Trust..................................................... *

South Australian Film Corporation....................................................... *

South Australian Forestry Corporation (trading as Forestry SA) ......... *

E.2

APPENDIX E

Organisation Name

General Govt

Sector


Sector


Sector

South Australian Government Captive Insurance Corporation (trading as SAICORP) ........................................................................

*

South Australian Government Employee Residential Properties(a)...... *

South Australian Government Financing Authority (trading as SAFA)................................................................................

*

South Australian Housing Trust ........................................................... *

South Australian Infrastructure Corporation ........................................ *

South Australian Local Government Grants Commission.................... *

South Australian Metropolitan Fire Service ......................................... *

South Australian Motor Sport Board .................................................... *

South Australian Tourism Commission ................................................ *

South Australian Water Corporation (trading as SA Water) ................. *

South East Catchment Water Management Board.............................. *

South Eastern Water Conservation and Drainage Board .................... *

State Electoral Office........................................................................... *

State Governor’s Establishment .......................................................... *

State Opera of South Australia ............................................................ *

State Supply Board.............................................................................. *

State Theatre Company of South Australia.......................................... *

Superannuation Funds Management Corporation of South Australia (trading as Funds SA)...........................................................

*

Torrens Catchment Water Management Board ................................... *

Trade and Economic Development, Department of............................. *

TransAdelaide ..................................................................................... *

Transmission Lessor Corporation........................................................ *

Transport and Urban Planning, Department of.................................... *

Treasury and Finance, Department of ................................................. *

Venue Management, Office of ............................................................. *

Water, Land and Biodiversity Conservation, Department of ................ *

West Beach Trust (trading as Adelaide Shores) .................................. *

WorkCover Corporation South Australia.............................................. *

Zero Waste SA, Office of..................................................................... *

E.3

APPENDIX E

Organisation Name

General Govt

Sector


Sector


Sector

Changes since the previous Budget:

New Organisations created since the previous Budget:

2007 Word Police and Fire Games Corporation (established from 30/10/03)................................................................

*

Office of Public Transport (est. from 1/1/04) ........................................ *

South Australian Ambulance Service (change in control) .................... *

South Australian Infrastructure Corporation (est. from 15/1/04) .......... *

Zero Waste SA, Office of (est. from 7/5/04)......................................... *

Deleted / Dissolved Organisations since the previous Budget:

Industrial and Commercial Premises Corporation (abolished from 1/12/03) .....................................................................

*

National Wine Centre (abolished from 21/8/03)................................... *

Office of Economic Development (abolished from 1/12/03) ................ *

Passenger Transport Board (abolished from 1/1/04)........................... *

Change of Names since the previous Budget:

Business, Manufacturing and Trade, Department for, now known as Trade and Economic Development, Department of (from 8/4/04)...

*

Future Changes of Significance, post Budget:

Department of Human Services will be separated into two Agencies, viz ‘Department of Health’ and ‘Department for Families and Communities’ (effective 1/7/04) ....................................................

*

(a) Department for Administrative and Information Services (DAIS) includes South Australian Government Employee Residential Properties which is a PNFC. The rest of DAIS is classified as part of the general government sector.

E.4

APPENDIX F

GENERAL GOVERNMENT AND NON-FINANCIAL PUBLIC SECTOR

FINANCIAL STATISTICS TIME SERIES

General Government

The following tables provide historical data on key fiscal aggregates. Data provided is sourced for 1998-99 from Australian Bureau of Statistics Government Financial Estimates 2002-03 (catalogue number 5501.4.5.001) and 1999-2000 to 2003-04 from Budget Outcome publications for South Australia.

Data is provided from 1998-99, the first year for which information is available in the accrual format. Prior to 1998-99, government finances were measured using a cash-based methodology.

Table F.1: General government key operating statement aggregates

Table F.2: General government key balance sheet and cash aggregates ($ million) (a)

(a) Unfunded superannuation data from 1998-99 data is sourced from the 1998-99 Budget Outcome publication for South Australia. There is a structural break in the methodology used to calculate superannuation liabilities between 2002-03 and 2003-04. This accounting change involved a significant increase in superannuation liabilities and is explained in further detail in Chapter 1 of this publication.

Net acquisition of non-financial

assets$m % real

growth% GSP $m % real

growth% GSP $m $m % Rev

1998-99 7 218 18.2 7 505 18.9 19 -306 -4.21999-2000 7 644 3.7 18.5 7 974 4.1 19.3 140 -471 -6.22000-01 8 108 1.5 18.1 8 406 0.9 18.8 102 -399 -4.92001-02 8 538 3.0 17.8 8 713 1.4 18.1 -50 -124 -1.52002-03 9 346 6.1 18.6 8 898 -1.1 17.7 34 414 4.42003-04 9 955 2.7 18.5 9 570 3.7 17.8 -38 424 4.3

Revenue Expenses Net lending

As at 30 June Net debt Unfunded superannuation

Net financial worth

Net worth Cash surplus

1999 4 780 3 909 1 892 10 622 -212

2000 1 920 3 543 2 986 12 447 -239

2001 1 246 3 249 4 091 14 788 -108

2002 1 303 3 998 3 559 14 706 -50

2003 666 4 445 3 500 15 288 658

2004 224 5 668 3 842 15 760 522

F.1

AP

PE

ND

IX F

Tab

le F

.3:

Gen

eral

go

vern

men

t se

cto

r o

per

atin

g s

tate

men

t ($

mill

ion

)

(a)

Prio

r to

200

2-03

, cap

ital g

rant

s w

ere

not r

epor

ted

sepa

rate

ly.

19

98

-99

19

99

-20

00

20

00

-01

20

01

-02

20

02

-03

20

03

-04

GF

S r

ev

en

ue

Ta

xatio

n r

eve

nu

e2

43

32

74

82

19

72

19

32

43

12

80

6C

urr

en

t g

ran

ts2

87

53

09

83

99

24

48

54

63

84

90

6C

ap

ital g

ran

ts(a

)—

——

— 2

09

19

1S

ale

s o

f g

oo

ds

an

d s

erv

ice

s 7

33

69

6 9

82

90

2 9

97

1 1

65

Inte

rest

inco

me

14

3 2

15

16

9 1

31

14

6 1

72

Oth

er

1 0

34

88

8 7

68

82

7 9

25

71

5T

ota

l re

ven

ue

7 2

18

7 6

44

8 1

08

8 5

38

9 3

46

9 9

55

less

GF

S e

xp

en

se

sG

ross

op

era

ting

exp

en

ses

5 2

96

5 6

94

6 2

16

6 4

89

6 5

24

7 0

53

No

min

al s

up

era

nn

ua

tion

inte

rest

exp

en

se 2

77

27

4 2

48

24

4 2

99

35

4O

the

r in

tere

st e

xpe

nse

s 6

43

60

1 3

53

27

2 2

97

25

3O

the

r p

rop

ert

y e

xpe

nse

s—

——

——

—C

urr

en

t tr

an

sfe

rs1

21

31

34

51

54

51

66

31

72

41

89

4C

ap

ital t

ran

sfe

rs 7

6 5

9 4

3 4

4 5

4 1

6T

ota

l exp

en

ses

7 5

05

7 9

74

8 4

06

8 7

13

8 8

98

9 5

70

eq

ua

lsG

FS

ne

t o

pe

rati

ng

ba

lan

ce

-28

7-3

30

-29

7-1

74

44

8 3

85

less

Ne

t a

cq

uis

itio

n o

f n

on

-fin

an

cia

l a

ss

ets

Gro

ss f

ixe

d c

ap

ital f

orm

atio

n 3

64

47

8 4

27

33

7 4

33

40

6le

ss D

ep

reci

atio

n 3

23

33

7 3

22

39

0 4

01

43

5p

lus

Ch

an

ge

in in

ven

tori

es

-2—

-3 3

2-1

0p

lus

Oth

er

mo

vem

en

ts in

no

n-f

ina

nci

al a

sse

ts-2

1—

——

——

eq

ua

ls T

ota

l ne

t a

cqu

isiti

on

of

no

n-f

ina

nci

al a

sse

ts 1

9 1

40

10

2-5

0 3

4-3

8e

qu

als

GF

S n

et

len

din

g-3

06

-47

1-3

99

-12

4 4

14

42

4

F.2

AP

PE

ND

IX F

Tab

le F

.4:

Gen

eral

go

vern

men

t se

cto

r b

alan

ce s

hee

t ($

mill

ion

) (a

)

(a)

Unf

unde

d su

pera

nnua

tion

data

from

199

8-99

dat

a is

sou

rced

from

the

1998

-99

Bud

get O

utco

me

publ

icat

ion

for

Sou

th A

ustr

alia

. T

here

is a

str

uctu

ral b

reak

in th

e m

etho

dolo

gy u

sed

to

calc

ulat

e su

pera

nnua

tion

liabi

litie

s be

twee

n 20

02-0

3 an

d 20

03-0

4. T

his

acco

untin

g ch

ange

invo

lved

a s

igni

fican

t inc

reas

e in

sup

eran

nuat

ion

liabi

litie

s an

d is

exp

lain

ed in

furt

her

deta

il in

C

hapt

er 1

of t

his

publ

icat

ion.

As

at J

un

e19

9920

0020

0120

0220

0320

04

Ass

ets

Fin

an

cia

l ass

ets

Ca

sh a

nd

dep

osi

ts1

88

43

18

71

80

61

844

2 0

52

2 1

78A

dva

nce

s p

aid

1 3

04

—1

25

81

233

1 1

67

1 1

33In

vest

me

nts

, lo

an

s a

nd

pla

cem

en

ts 1

21

60

8 1

27

170

17

0 1

54O

the

r n

on-

equ

ity a

sse

ts 4

09

36

0 3

25

311

28

9 3

86E

qu

ity1

1 6

61

9 9

14

10

15

81

0 4

541

0 4

79

11

811

To

tal f

inan

cial

ass

ets

15

27

01

5 0

68

13

67

31

4 0

121

4 1

57

15

661

No

n-f

ina

nci

al a

sse

tsL

and

an

d fi

xed

ass

ets

8 6

749

27

01

0 6

36

11

076

11

71

0 1

1 8

35O

the

r n

on-

fina

nci

al a

sset

s 5

6 1

91

62

71

78

83

To

tal n

on

-fin

an

cia

l ass

ets

8 7

30

9 4

61

10

69

71

1 1

461

1 7

88

11

917

To

tal a

sse

ts2

4 0

00

24

52

92

4 3

71

25

158

25

94

5 2

7 5

79

Lia

bili

ties

De

po

sits

he

ld 5

22

63

9 4

70

401

32

9 3

09A

dva

nce

s re

ceiv

ed

1 0

99

93

5 8

44

790

78

0 7

33B

orr

ow

ing

6 3

59

5 1

40

3 1

23

3 3

592

94

7 2

648

Un

fun

ded

sup

era

nn

uat

ion

lia

bili

ty3

90

93

54

33

24

93

998

4 4

45

5 6

68O

the

r e

mpl

oye

e e

ntit

lem

ents

and

pro

visi

ons

61

2 8

40

97

61

057

1 3

52

1 4

95O

the

r n

on-

equ

ity li

abili

ties

877

98

5 9

20

847

80

6 9

67T

ota

l lia

bili

ties

13

37

81

2 0

82

9 5

83

10

453

10

65

8 1

1 8

19N

et w

ort

h1

0 6

22

12

44

71

4 7

88

14

706

15

28

8 1

5 7

60N

et f

ina

nci

al w

orth

1 8

92

2 9

86

4 0

91

3 5

59

3 5

00

3 8

42N

et d

eb

t4

78

01

92

01

24

61

30

3 6

66

224

F.3

APPENDIX F

Table F.5 General government expenses by function ($ million)(a)

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

2002-03 2003-04Outcome Outcome

$m $mGeneral public services 260 329Defence — —Public order and safety 882 900Education 2 239 2 420Health 2 357 2 563Social security and welfare 533 545Housing and community amenities 622 710Recreation and culture 248 255Fuel and energy 35 87Agriculture, forestry, fishing and hunting 161 189Mining, manufacturing and construction 98 87Transport and communications 589 624Other economic affairs 254 219Other purposes 620 642Total GFS expenses 8 898 9 570

F.4

APPENDIX F

Non-Financial Public Sector

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

Table F.7: Non-financial public sector key balance sheet and cash aggregates ($ million) (a)

(a) Unfunded superannuation data from 1998-99 data is sourced from the 1998-99 Budget Outcome publication for South Australia. There is a structural break in the methodology used to calculate superannuation liabilities between 2002-03 and 2003-04. This accounting change involved a significant increase in superannuation liabilities and is explained in further detail in Chapter 1 of this publication.

As at 30 June Net debt Unfunded superannuation

Net financial worth

Net worth Cash surplus

1999 7 658 3 909 -12 258 10 622 132000 4 355 3 543 -8 986 12 445 3 5132001 3 223 3 249 -7 109 14 816 1 1582002 3 317 3 998 -7 902 14 721 42003 2 696 4 445 -8 811 15 288 6342004 2 285 5 668 -9 550 15 760 488

$m % real growth

% GSP $m % real growth

% GSP $m % Rev

1998-99 9 395 23.7 9 617 24.3 -115 -107 -1.1

1999-2000 9 206 -4.0 22.3 9 552 -2.7 23.1 -3 508 3 161 34.3

2000-01 9 051 -5.9 20.2 9 279 -7.0 20.7 -1 111 883 9.8

2001-02 9 367 1.3 19.5 9 487 0.1 19.8 - 124 5 0.1

2002-03 10 172 5.2 20.2 9 696 -1.0 19.3 72 405 4.0

2003-04 10 707 1.5 19.9 10 294 2.3 19.1 33 379 3.5

Net acquisition of non-financial

assets$m

Revenue Expenses Net lending

F.5

AP

PE

ND

IX F

Tab

le F

.8:

No

n-f

inan

cial

pu

blic

sec

tor

op

erat

ing

sta

tem

ent

($ m

illio

n)

(a)

Prio

r to

200

2-03

, cap

ital g

rant

s w

ere

not r

epor

ted

sepa

rate

ly.

1998

-99

1999

-200

020

00-0

120

01-0

220

02-0

320

03-0

4

GF

S r

even

ue

Tax

atio

n r

eve

nue

2 2

37

2 5

27

2 0

242

02

72

27

22

629

Cu

rre

nt g

ran

ts2

87

53

10

63

995

4 4

88

4 6

41

4 9

09C

ap

ital g

ran

ts(a

)—

——

— 2

37

215

Sa

les

of g

ood

s an

d s

erv

ice

s3

60

62

86

92

401

2 1

07

2 2

72

2 4

46In

tere

st in

com

e 8

1 1

76

121

85

10

3 1

25O

the

r 5

97

52

8 5

10 6

60

64

8 3

82T

ota

l re

ven

ue

9 3

95

9 2

06

9 0

519

36

71

0 1

72

10 7

07le

ssG

FS

exp

ense

sG

ross

op

era

ting

exp

en

ses

7 6

72

7 5

85

7 4

617

62

57

68

98

219

No

min

al s

upe

ran

nua

tion

inte

rest

exp

en

se 2

77

27

4 2

48 2

44

29

9 3

54O

the

r in

tere

st e

xpe

nse

s 8

34

78

2 4

47 3

54

37

4 3

15O

the

r pr

op

ert

y e

xpe

nse

s 5

3—

— 3

15

Cu

rre

nt t

ran

sfe

rs 7

70

86

01

080

1 2

20

1 2

76

1 3

75C

ap

ital t

ran

sfe

rs 5

8 4

8 4

3 4

4 5

4 1

6T

ota

l exp

ens

es

9 6

17

9 5

52

9 2

799

48

79

69

610

294

equ

als

GF

S n

et o

per

atin

g b

alan

ce-

22

1-

34

6-

228

- 12

0 4

76

413

less

Net

acq

uis

itio

n o

f n

on

-fin

anci

al a

sset

sG

ross

fix

ed

ca

pita

l for

ma

tion

67

0-2

28

0-

594

47

9 6

66

687

less

De

pre

cia

tion

65

8 6

07

512

58

8 6

03

651

plu

s C

ha

nge

in in

ven

torie

s-

10

1 1

0-

5-

15

9-

3pl

us

Oth

er

mo

vem

en

ts in

no

n-f

ina

nci

al a

sse

ts-

26-

63

0—

——

—e

qua

ls T

ota

l ne

t a

cqu

isiti

on

of n

on

-fin

an

cia

l ass

ets

- 1

15-3

50

8-1

11

1-

124

72

33

equ

als

GF

S n

et le

nd

ing

- 1

07

3 1

61

883

5 4

05

379

F.6

AP

PE

ND

IX F

Tab

le F

.9:

No

n-f

inan

cial

pu

blic

sec

tor

bal

ance

sh

eet

($ m

illio

n)

(a)

(a)

Unf

unde

d su

pera

nnua

tion

data

from

199

8-99

dat

a is

sou

rced

from

the

1998

-99

Bud

get O

utco

me

publ

icat

ion

for

Sou

th A

ustr

alia

. T

here

is a

str

uctu

ral b

reak

in th

e m

etho

dolo

gy u

sed

to c

alcu

late

su

pera

nnua

tion

liabi

litie

s be

twee

n 20

02-0

3 an

d 20

03-0

4. T

his

acco

untin

g ch

ange

invo

lved

a s

igni

fican

t inc

reas

e in

sup

eran

nuat

ion

liabi

litie

s an

d is

exp

lain

ed in

furt

her

deta

il in

Cha

pter

1 o

f thi

s pu

blic

atio

n.

As

at J

un

e19

9920

0020

0120

0220

0320

04

Ass

ets

Fin

anci

al a

sset

sC

ash

and

depo

sits

2 01

63

303

1 93

21

915

2 12

42

250

Adv

ance

s pa

id 1

98—

184

189

192

186

Inve

stm

ents

, loa

ns a

nd p

lace

men

ts 1

1 3

85 1

43 1

82 1

82 1

64O

ther

non

-equ

ity a

sset

s 6

10 3

58 3

32 3

37 2

94 3

56E

quity

894

966

1 07

61

098

309

618

Tot

al fi

nanc

ial a

sset

s3

729

5 01

23

666

3 72

03

100

3 57

4

Non

-fin

anci

al a

sset

sLa

nd a

nd fi

xed

asse

ts22

822

21 2

0921

914

22 6

0524

074

25 2

85O

ther

non

-fin

anci

al a

sset

s 5

8 2

22 1

1 1

7 2

4 2

4T

otal

non

-fin

anci

al a

sset

s22

880

21 4

3121

925

22 6

2224

098

25 3

09T

otal

ass

ets

26 6

0926

444

25 5

9226

342

27 1

9928

883

Lia

bili

ties

Dep

osits

hel

d 4

07 4

40 2

52 1

90 1

48 1

22A

dvan

ces

rece

ived

1 09

9 9

35 8

44 7

90 7

80 7

33B

orro

win

g8

377

6 66

84

386

4 62

34

267

4 03

0U

nfun

ded

supe

rann

uatio

n lia

bilit

y3

909

3 54

33

249

3 99

84

445

5 66

8O

ther

em

ploy

ee e

ntitl

emen

ts a

nd p

rovi

sion

s1

024

987

1 06

81

137

1 41

91

586

Oth

er n

on-e

quity

liab

ilitie

s1

171

1 42

5 9

77 8

84 8

53 9

84T

otal

liab

ilitie

s15

987

13 9

9810

776

11 6

2211

911

13 1

24N

et w

ort

h10

622

12 4

4514

816

14 7

2115

288

15 7

60N

et fi

nanc

ial w

orth

-12

258

-8 9

86-7

109

-7 9

02-8

811

-9 5

50N

et d

ebt

7 65

84

355

3 22

33

317

2 69

62

285

F.7

Documents

FINAL BUDGET OUTCOME 2003-04 - treasury.sa.gov.au...the differences in the 2003-04 final budget outcome and the earlier estimates. Table 1.2 provides a reconciliation of the changes