CPA Congress 2014

Andrew Barr MLADeputy Chief Minister

Treasurer Minister for Economic Development

Minister for Tourism & EventsMinister for Housing

Growth, Diversification and Jobs

Competitive strengths and priorities

• ACT exported $1.27 billion of services in 2013 calendar year.

• ACT has 1.6% of Australia’s population, but 2.3% of its service exports.

• ACT’s service exports have averaged 7.3% annual growth over the last decade.

• Exports include:

• $624 million in travel exports (incl. Business- and education-related travel)

• $299 million in government goods and services

• $265 million in business services (incl. R&D services)

Competitive strengths and priorities• Defence and security

• Department of Defence spends $1 billion p.a. directly in ACT and procures further $15 billion p.a. throughout Australia, generally by Canberra-based decision makers.

• Digital economy and e-government

• World class innovators and digital infrastructure along with major institutions such as NICTA and ANU. Approx. 25% of government expenditure on R&D in this arena occurs in Canberra.

• Health and Sports Science

• World-class health system servicing a population of 800,000. Home to AIS, John Curtin School of Medical Research and University of Canberra Sports Hub.

Competitive strengths and priorities• Innovation and higher education

• More than 35,000 university students, including more than 10,000 international students across five university campuses.

• Space, satellite and spatial sciences

• Trailblazing observatories and facilities such as the Advanced Instrumentation and Technology Centre and Canberra Deep Space Communication Complex including the largest antenna in the Southern Hemisphere.

• Tourism infrastructure

• High yielding business travel market, above national average occupancy rates, high average takings and a strategic approach to growing regional tourism growth.

CBR Innovation Network and Invest Canberra

• Supporting ACT trade and investment activities in Singapore, Hong Kong, China and USA.

• Generated 100 leads in first year with around 20 currently being case managed.

• Linking businesses and entrepreneurs to accelerate innovation and growth to maximise wealth creation

• Independent not-for-profit company with ANU, CSIRO, NICTA, UC and UNSW (Canberra) as foundation members and financial contributors.

The right business environment

• Single level of government to deal with – combined state and municipal functions

• Strong ongoing regulatory reform agenda. E.g.:

• Extending maximum terms for business licences

• Simplifying fee structures

• Streamlining government procurement processes

• Highest payroll tax threshold in Australia

• Fairer, simpler and more efficient tax regime

Taxation reformMaking taxes fairer, simpler and more efficient

• Abolishing duty on insurance• Phasing out Conveyance Duty• Abolished commercial Land Tax• Increasing Payroll Tax thresholds• Abolished duty on short-term

leases• Abolished duty on transfer of sub-

leases

Replace revenue through…

• Increased General Rates • Commercial• Residential, with

enhanced concessions

Actual Actual Actual Actual Actual Actual Actual Actual Actual Actual Est Est Est Est Est03-04 04-05 05-06 06-07 07-08 08-09 09-10 10-11 11-12 12-13 13-14 14-15 15-16 16-17 17-18

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

Actual Expenditure Estimated Expenditure Capital Provision

Capital Works Expenditure Program

Source: ACT 2014-15 Budget Papers

Capital Metro: $1 billion economic benefit

Note: The Net Operating Balance is presented on an Australian Accounting Standards (AAS) basis up until 2005 06 and reflects the Annual Consolidated Financial Statements. From 2006-07, the Net Operating Balance is presented on a Headline ‑basis, the ACT’s key fiscal indicator. This indicator is a representation of the AAS Net Operating Balance from transactions adjusted for the investment return differential on superannuation investments.

Historical Net Operating Balance Analysis20

01-0

2

2002

-03

2003

-04

2004

-05

2005

-06

2006

-07

2007

-08

2008

-09

2009

-10

2010

-11

2011

-12

2012

-13

2013

-14

2014

-15

2015

-16

2016

-17

2017

-18

-400

-300

-200

-100

0

100

200

300

400Actual Estimate

$ m

illio

ns

C’wlth contractionGFC

Where our money goes…