FINANCIAL STATEMENTS

Operating statement

For the year ended 30 June 2018 2017-18
$'000
2016-17
$'000
Income from transactions
Revenue from government* 107,293 92,453
Sales of goods and services 765 717
Payments to consolidated fund (822) -
Total income from transactions 107,236 93,170
Expenses from transactions
Employee benefits 57,877 54,396
Supplies and services 23,191 23,300
Depreciation and amortisation 19,586 7,275
Grants and other transfers 5,031 4,891
Capital asset charge 11 18
Interest expenses 6 4
Total expenses from transactions 105,702 89,884
Net result from transactions 1,534 3,286
Other economic flows in net result
Net gains / (losses) on financial instruments (8) (3)
Net gains / (losses) on non-financial assets (17) 11
Other gains / (losses) on other economic flows 27 459
Total other economic flows in net result 2 467
Net surplus/(deficit) for reporting period 1,536 3,753
* Revenue from government represents the output budget allocated to the State Revenue Office

Notes to the operating statement

  • The increase of $3.481 million in employee benefits was mainly due to the commencement of additional compliance programs and the implementation of new legislative initiatives.
  • The increase of $11.962 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, with 2017-18 the second year of the two year cycle.
  • Grants and other transfers consist of payments made to municipal councils in relation to administering the Fire Services Property Levy, which were based on the Treasurer’s determination under section 70 of the Fire Services Property Levy Act 2012.
  • Expenses from transactions exclude $0.638 million in relation to administering the Growth Area Infrastructure Contribution and Metropolitan Planning Levy, which were run through Treasury Trust.

Balance sheet

As at 30 June 2018 2017-18
$'000
2016-17
$'000
Financial assets
Cash assets 2 2
Receivables 34,859 20,795
Total financial assets 34,861 20,797
Non-financial assets
Inventories 20 -
Plant, property and equipment 692 208
Intangible assets 8,264 22,589
Other 2,226 2,014
Total non-financial assets 11,202 24,811
Total assets 46,063 45,608
Liabilities
Payables 11,043 11,475
Interest-bearing liabilities 253 259
Provisions 16,810 15,584
Total liabilities 28,106 27,588
Net assets 17,957 18,020

Notes to the balance sheet

Receivables

Receivables 2017-18
$'000
2016-17
$'000
Amounts owing from Victorian Government 34,049 19,985
GST input tax credit recoverable 254 536
Other receivables 556 274
Total receivables 34,859 20,795

Written-down value of property, plant and equipment

Written-down value of property, plant and equipment 2017-18
$'000
2016-17
$'000
Computer equipment 569 2
Plant, furniture and equipment 20 52
Leasehold improvements / fitouts 103 154
Total written-down value of plant, property and equipment 692 208

Written-down value of intangible assets

Written-down value of intangible assets 2017-18
$'000
2016-17
$'000
Municipal valuations* - 14,721
Other intangible produced assets** 5,789 5,430
Work in progress** 2,475 2,438
Total written-down value of intangible assets 8,264 22,859
*All municipal valuations were fully amortised by 30 June 2018
** Capitalised and uncapitalised expenditure on e-Sys Life Extension Project

Other non-financial assets

Other non-financial assets 2017-18
$'000
2016-17
$'000
Prepayments 1,994 1,756
Motor vehicle leased 232 258
Total other non-financial assets 2,226 2,014

Current payables

Current payables 2017-18
$'000
2016-17
$'000
Unpresented cheques 34 368
Trade creditors 11 7
Accruals 8,229 7,916
Other payables 2,769 3,184
Total payables 11,043 11,475

Interest-bearing liabilities

Interest-bearing liabilities 2017-18
$'000
2016-17
$'000
Current liabilities
Motor vehicle leases 153 104
Total current liabilities 153 104
Non-current liabilities
Motor vehicle leases 100 155
Total non-current liabilities 253 155
Total interest-bearing liabilities 253 259

Provisions

Provisions 2017-18
$'000
2016-17
$'000
Current provisions
Annual leave 3,411 3,140
Long service leave 10,023 9,595
Other employee entitlements 1,812 1,718
Total current provisions 15,246 14,453
Non-current provisions
Long service leave 1,564 1,401
Total non-current provisions 1,564 1,401
Total provisions 16,810 15,854

Administered items

Administered revenues

Administered revenues 2017-18
$'000
2016-17
$'000
Payroll Tax 6,638,272 6,312,891
Duties* 8,240,995 7,362,008
Land Tax 2,560,423 2,511,565
Congestion Levy 103,151 119,381
Growth Areas Infrastructure Contribution 264,607 188,892
Metropolitan Planning Levy 23,025 27,028
Fire Services Property Levy 694,090 675,645
Licence fees 23,750 22,657
Total 18,548,313 17,220,067
Less: Cattle Compensation Fund (4,228) (4,684)
Less: Swine Compensation Fund (192) (196)
Less: Sheep and Goat Compensation Fund (1,404) (1,187)
Add: Unclaimed money receipts 92,474 93,156
Add: User charges 3,916 3,495
Add: Sundry income 422 393
Total administered revenues 18,639,301 17,311,044
* Includes Cattle Compensation Fund, Swine Compensation Fund and Sheep and Goat Compensation Fund

Administered expenses

Administered expenses 2017-18
$'000
2016-17
$'000
First Home Owner Grant 157,336 116,026
First Home Bonus (205) (1,892)
Liquor subsidies 3,810 3,866
Other grants, rebates and other payments 29,907 71,321
Unclaimed money refunds 17,818 18,829
Bad and doubtful debts 26,175 37,272
Total administered expenses 234,841 245,422
Net administered revenues 18,404,460 17,065,622

Notes to administered items

  • Tax and duty revenue increased by $1,328.2 million to $18,548 million. This included an increase of:
    • $798.9 million in land transfer duty,
    • $48.8 million in land tax,
    • $325.3 million in payroll tax.
  • The Fire Services Property Levy increased by $18.4 million mainly due to the change of fixed charges and levy rates according to sections 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 a decrease of $0.6 million in the 2017-18 financial year.
  • The First Home Owner Grant increased by $41.3 million mainly due to an increase in the number of applications and an increase in the value of the grant for new home purchases in regional Victoria.
  • Other grants, rebates and other payments decreased by $41.4 million mainly due to a decrease in Back to Work expenditure of $35.0 million.
  • The $11 million decrease in bad and doubtful debts was made up of a decrease of $36 million in bad debts and an increase of $24.9 million in the provision for doubtful debts.