FINANCIAL STATEMENTS

Operating statement

For the year ended 30 June 2016 2015-16
$'000
2014-15
$'000
Income from transactions
Revenue from government* 92,267 80,219
Sales of goods and services 756 405
Payments to consolidated fund (1,775) (1)
Total income from transactions 91,248 80,623
Expenses from transactions
Employee benefits 48,462 50,210
Supplies and services 19,732 16,101
Depreciation and amortisation 18,683 8,465
Grants and other transfers 4,754 4,621
Capital asset charge 28 84
Interest expenses 3 448
Total expenses from transactions 91,662 79,929
Net result from transactions (414) 694
Other economic flows in net result
Net gains / (losses) on financial instruments (2) -
Net gains / (losses) on non-financial assets 9 7
Other gains / (losses) on other economic flows (679) (58)
Total other economic flows in net result (672) (51)
Net surplus/(deficit) for reporting period (1,086) 643
* Revenue from government represents the output budget allocated to SRO

Notes to the operating statement

  • The decrease of $1.748 million in employee benefits was mainly due to the reclassification of labour contractor costs of $4.617 million to supplies and services in 2015-16, which was partly offset by the increase in workforce size and the general wages increase. This change forms the primary reason for the increase in supplies and services.
  • The increase of $10.218 million in depreciation and amortisation was mainly due to an increase in amortisation expenses related to municipal valuations. Municipal valuations are amortised for up to two years and due to the timing of purchases the amortisation expense is always higher in the second year of the cycle. 2015-16 was the second year of the two-year cycle.
  • Grants and other transfers consist of payments made to municipal councils in relation to the administration of the Fire Service Property Levy, which were based on the Treasurer’s determination under s70 of the Fire Services Property Levy Act 2012.
  • Expenses from transactions include $0.602 million in relation to the administration of the Growth Area Infrastructure Contribution and Metropolitan Planning Levy. Costs recovered from the relevant trust funds were reported as sales of goods and services.

 

Administered items

Administered revenues

Administered revenues 2015-16 $'000 2014-15 $'000
Payroll tax 5,948,733 5,681,309
Duties* 7,000,745 6,034,735
Land tax 1,792,873 1,754,156
Congestion Levy 102,053 110,603
Growth Areas Infrastructure Contribution 149,352 128,767
Metropolitan Planning Levy 19,832 2
Fire Services Property Levy 674,063 588,478
Licence fees 22,026 22,544
Total 15,709,677 14,320,594
Less: Cattle Compensation Fund (4,985) (4,161)
Less: Swine Compensation Fund (189) (179)
Less: Sheep and Goat Compensation Fund (1,296) (1,404)
Add: Unclaimed money receipts 96,491 90,825
Add: User charges 3,232 3,251
Add: Sundry income 1,187 902
Total administered revenues 15,804,117 14,409,828
* Includes Cattle Compensation Fund, Swine Compensation Fund and Sheep & Goat Compensation Fund

Administered expenses

Administered expenses 2015-16 $'000 2014-15 $'000
First Home Owner Grant 110,749 98,293
First Home Bonus - 5,182
Liquor subsidies 3,617 2,531
Other grants, rebates and other payments 67,809 65,320
Unclaimed money refunds 17,176 14,567
Bad and doubtful debts 24,595 25,877
Total administered expenses 223,946 211,770
Net administered revenues 15,580,171 14,198,058

Notes to administered items

  • Tax and duty revenue increased by $1,389.0 million to $15,709.6 million. This included:
    • an increase of $900.5 million in land transfer duty;
    • an increase of $38.7 million in land tax; and
    • an increase of $267.4 million in payroll tax.
  • The Fire Services Property Levy increased by $85.5 million mainly due to the change of fixed charges and levy rates according to ss.11 and 12 of the Fire Services Property Levy Act.
  • Unclaimed money receipts represent monies transferred to the Registrar under the Unclaimed Money Act and the Gambling Regulation Act. There was an increase of $5.6 million in the 2015-16 financial year.
  • The First Home Owner Grant increased by $12.4 million mainly due to an increase in the number of applications.
  • Other grants, rebates and other payments increased by $2.4 million mainly due to an increase in payments for Back to Work Scheme of $39.8 million, and a decrease in ex gratia relief expenditure of $36.8 million.
  • The $1.2 million decrease in bad and doubtful debts was made up of a decrease of $11.5 million in bad debts and an increase $10.2 million in the provision for doubtful debts.

 

Balance sheet

As at 30 June 2016 2015-16
$'000
2014-15
$'000
Financial assets
Cash assets 2 3
Receivables 32,348 16,617
Total financial assets 32,350 16,620
Non-financial assets
Inventories - -
Plant, property and equipment 346 1,072
Intangible assets 7,601 21,648
Other 1,869 1,676
Total non-financial assets 9,816 24,396
Total assets 42,166 41,016
Liabilities
Payables 10,302 9,320
Interest-bearing liabilities 277 214
Provisions 15,142 13,631
Total liabilities 25,721 23,165
Net assets 16,445 17,851

Notes to the balance sheet

Receivables

Receivables 2015-16
$'000
2014-15
$'000
Amounts owing from Victorian Government 28,218 14,955
GST input tax credit recoverable 293 183
Other receivables 3,837 1,479
Total receivables 32,348 16,617

Written-down value of property, plant & equipment

Written-down value of property, plant & equipment 2015-16
$'000
2014-15
$'000
Computer equipment 3 5
Plant, furniture and equipment 72 101
Leasehold improvements / fitouts 271 966
Construction in progress - -
Total written-down value of plant, property and equipment 346 1,072

Written-down value of intangible assets

Written-down value of intangible assets 2015-16
$'000
2014-15
$'000
Municipal valuations* - 13,161
Other intangible produced assets** 6,041 6,128
Work in progress** 1,560 2,359
Total written-down value of intangible assets 7,601 21,648
*All municipal valuations will be fully amortised by 30 June 2016
** Capitalised and uncapitalised expenditure on e-Sys Life Extension Project

Other non-financial assets

Other non-financial assets 2015-16
$'000
2014-15
$'000
Prepayments 1,594 1,464
Motor vehicle leased 275 212
Total other non-financial assets 1,869 1,676

Payables

Current payables 2015-16
$'000
2014-15
$'000
Unpresented cheques 559 66
Trade creditors 2,071 956
Accruals 4,939 4,627
Other payables 2,733 3,671
Total payables 10,302 9,320

Interest-bearing liabilities

Interest-bearing liabilities 2015-16
$'000
2014-15
$'000
Current liabilities
Motor vehicle leases 131 139
Total current liabilities 131 139
Non-current liabilities
Motor vehicle leases 146 75
Total non-current liabilities 146 75
Total interest-bearing liabilities 277 214

Provisions

Provisions 2015-16
$'000
2014-15
$'000
Current provisions
Annual leave 2,841 2,678
Long service leave 9,497 8,077
Other Employee Entitlements 1,500 1,698
Total current provisions 13,838 12,453
Non-current provisions
Long service leave 1,304 1,178
Total non-current provisions 1,304 1,178
Total provisions 15,142 13,631