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Department of Treasury and Finance

State Administration Centre 200 Victoria Square, Adelaide South Australia, 5000

GPO Box 1045, Adelaide South Australia, 5001

Telephone: +61 (08) 8226 9500

www.treasury.sa.gov.au

2017-18

Final Budget

Outcome

Final Budget Outcome 2017−18

General enquiries regarding financial information papers should be directed to:

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

Website: www.treasury.sa.gov.au

© Government of South Australia 2018

ISSN 1036-3807 Public-I3-AI

Table of contents

Introduction .......................................................................................................................... 3

Chapter 1: 2017–18 Final Budget Outcome Overview .................................................................................................................................................. 5 General government sector operating results ........................................................................................... 7 Balance sheet indicators ......................................................................................................................... 12

Chapter 2: Economic performance South Australian economic performance for the year 2017–18 ............................................................. 17

Appendices Appendix A Uniform Presentation Framework tables and Loan Council allocation report ................ 19 Appendix B Consolidated Account ..................................................................................................... 39 Appendix C General government and non-financial public sector financial statistics time series ...... 47

Final Budget Outcome 2017–18 1

2 Final Budget Outcome 2017–18

Introduction

The Final Budget Outcome reports the 2017–18 financial results for the Government of South Australia against its key fiscal targets and provides an analysis of these results against earlier estimates.

Chapter 1 provides an overview of the 2017−18 final outcomes with a focus on the general government sector financial outcomes and financial liabilities. The chapter includes:

• a discussion of variations between the 2017−18 final outcome for revenues and expenses of thegeneral government sector and 2017–18 estimates included in the 2018−19 Budget.

• public sector net debt and superannuation liability levels as at 30 June 2018.

Chapter 2 provides an assessment of the performance of the South Australian economy in 2017−18.

The appendices to this document provide the following information.

• Appendix A contains the Uniform Presentation Framework reporting for the general governmentsector, the public non-financial corporations sector, the non-financial public sector and the publicfinancial corporations sector. Further information is also provided on general government sectortaxation revenue, grant revenue and expenses, and expenses and capital expenditure by function.

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

• Appendix C provides a time series of financial statistics.


Introduction


Chapter 1: 2017–18 Final Budget Outcome

Overview

The Government of South Australia recorded a net operating deficit of $313 million for 2017–18 for the general government sector. This represents an improvement of $84 million from the $397 million deficit estimated at the time of the 2018–19 Budget.

The improvement compared with the estimate at the time of the 2018–19 Budget reflects a combination of higher than expected revenue ($146 million), partly offset by higher than expected expenditure ($62 million).

The net lending deficit was $977 million in 2017–18, compared with an estimated surplus of $690 million at the time of the 2018–19 Budget, which is largely the result of a change in the accounting treatment for the Land Services Commercialisation transaction.

Excluding the change in accounting treatment for the Land Services Commercialisation transaction, the remaining variance in 2017–18 compared to the estimates in the 2018–19 Budget is an improvement in the net operating balance of $57 million and a deterioration in net lending of $90 million.

Net debt for the general government sector at 30 June 2018 was $5.4 billion, $116 million higher than estimated at the time of the 2018–19 Budget.

Net debt for the non-financial public sector at 30 June 2018 was $61 million higher than the estimate at the time of the 2018–19 Budget. This is largely driven by the higher net debt result in the general government sector ($116 million) offset by a decrease in net debt in the public non-financial corporations sector ($55 million).

Land Services Commercialisation

In the 2018–19 Budget the Land Services Commercialisation transaction was reflected as a sale of an intangible asset (in 2017–18). Discussions with the Auditor-General since the release of the 2018–19 Budget has resulted in the principles of the Australian Accounting Standard AASB 1059 Service Concession Arrangements: Grantors being applied to the Land Services Commercialisation transaction. Under the concepts of AASB 1059, the following revised accounting treatment has been applied to the total proceeds of $1.6 billion:

• $1.525 billion in proceeds have been recognised as unearned revenue and this revenue isrecognised on a straight line basis over the 40 year term of the arrangement. For 2017–18 this hasresulted in $27 million revenue being recognised (part year) with $38 million recognised for eachsubsequent year of the arrangement. This has a positive impact on the net operating balance.

• $80 million in proceeds for the Exclusive Right to Negotiate (ERN) which is anticipated to besettled in 2019–20 and as such the State will reflect the revenue from Land Services SA in thatyear.

• As the transaction is no longer treated as proceeds from the sale of an intangible asset, this is nolonger shown as a capital receipt and therefore results in a $1.6 billion deterioration in the netlending position compared to the 2018–19 Budget.

• The South Australian Integrated Land Information System (SAILIS) and infrastructure used todeliver the services has been reclassified as a service concession asset and revalued to its currentreplacement cost of $17.1 million.


Table 1.1 shows the impact on key general government financial indicators on applying the concepts of AASB 1059 for the Land Services Commercial transaction in 2017−18 compared with the estimates in the 2018–19 Budget. While the change in accounting treatment has affected the net operating balance and net lending, it has not altered the impact on net debt as the cash proceeds of $1.6 billion were received by the state on the execution of the commercialisation contracts in 2017–18.

Table 1.1: Land Services Commercialisation transaction ($million)

2017–18 Estimate at

2018–19 Budget

2017–18 Outcome

Revenue — 27 Expenses — — Net operating balance — 27 Net acquisition of non-financial assets(a) 1 605 — Net lending 1 605 27 Net debt 1 605 1 605

(a) 2017–18 estimate reflected the Land Services Commercialisation as a sale of an intangible asset. The 2017–18 Outcomehas reflected the transaction under the concepts of AASB 1059 — Service Concession Arrangements: Grantors.

Fiscal Aggregates

Table 1.2 shows the 2017−18 outcomes for key general government financial indicators compared with earlier estimates and the 2016–17 outcomes.

Table 1.2: General government sector aggregates ($million)

2016–17 Outcome

2017–18 Estimate as

2017–18 Budget


2018–19 Budget

2017–18 Outcome

Revenue 18 480 19 148 19 198 19 344 Expenses -18 037 -19 076 -19 595 -19 657 Net operating balance 443 72 - 397 - 313 Net acquisition of non-financial assets 2 814 - 157 -1 087 665 Net lending -2 371 228 690 - 977 Memorandum items: Net debt 6 110 6 072 5 331 5 447 Net debt to revenue 33.1 31.7 27.8 28.2

Note: Totals may not add due to rounding.

Table 1.3 shows the 2017−18 outcome for key non-financial public sector financial indicators compared with earlier estimates and the 2016–17 outcome.



Table 1.3: Non-financial public sector aggregates ($million)

2016–17 Outcome

2017–18 Estimate as

2017–18 Budget


2018–19 Budget

2017–18 Outcome

Revenue 19 447 20 231 20 261 20 384 Expenses -19 228 -20 283 -20 685 -20 768 Net operating balance 219 - 52 - 425 - 384 Net acquisition of non-financial assets 3 359 34 - 989 728 Net lending -3 140 - 86 564 -1 112 Memorandum items:

Net debt 13 529 13 942 12 889 12 950 Net debt to revenue 69.6 68.9 63.6 63.5


General government sector operating results

The major items contributing to the variations in the general government sector financial outcome compared with previous estimates are discussed below.

Operating revenue

Operating revenues for the general government sector for 2017–18 were $146 million higher than estimated at the time of the 2018–19 Budget largely due to higher than expected revenue from sales of goods and services and other revenue, partially offset by lower grant revenue.

Table 1.4: Operating revenue ($million)


2017–18 Budget


2018–19 Budget

2017–18 Outcome

Revenue Taxation revenue 4 629 4 557 4 558 Grants 10 661 10 736 10 677 Sales of goods and services 2 568 2 552 2 637 Interest income 25 24 23 Dividend and income tax equivalent income 592 650 677 Other 673 679 771 Total revenue 19 148 19 198 19 344


Taxation revenue

Taxation revenue was in line with the estimated result in 2017–18, with minor, largely offsetting variances for property tax revenue and motor vehicle taxes.

Table 1.5 summarises variations in actual tax receipts for 2017–18 relative to the estimated outcome at the time of the 2018–19 Budget.



Table 1.5: Taxation variations ($million)

Variation Payroll tax — Taxes on property -3 Insurance taxes — Gambling taxes -1Motor vehicle taxes 4Total taxation 1


Grant revenue

Total grant revenue was $59 million lower than estimated in the 2018–19 Budget.

GST revenue grants were $31 million lower than expected primarily due to lower than anticipated growth in the total national GST pool available for distribution in 2017–18.

National Partnership (NP) payments were $6 million lower than estimated reflecting minor variances across a number of NPs.

Specific Purpose payments were $5 million lower than estimated primarily due to lower than expected funding under the National Health Reform Agreement.

Total other contributions and grants were around $16 million lower than estimated mainly due to lower than expected education and health related revenue grants.

Sales of goods and services

Revenue from sales of goods and services was $85 million above expectations mainly due to higher revenue from Commonwealth Government contributions, schools revenue and other user charges.

Other user charges were $44 million higher than expected but were mainly offset by downward revisions in a range of other revenue lines reflecting the reclassification of revenue between the original budget and the actual outcome. Underlying other user charges revenue was higher than expected partly as a result of higher grant recoveries related to disability brokerage services.

Revenue from Commonwealth Government contributions was $13 million higher than expected reflecting additional revenue for a range of health related programs, including the Pharmaceutical Benefits Scheme and Commonwealth Home Support Program.

Schools revenue was $11 million higher than the estimated result primarily due to higher than expected revenue, including from materials and services fees.

Dividend and income tax equivalent income

Dividend and income tax equivalent revenue was $27 million higher than estimated primarily reflecting higher than expected income tax equivalent revenue from SA Water.

Other revenue

Other revenues were $92 million higher than the estimated result mainly reflecting the recognition of income received from the Land Services Commercialisation transaction and higher than expected revenues from contributed assets and fines and penalties.

The revised accounting treatment for the Land Services Commercialisation transaction resulted in an additional $27 million in other revenue being recognised 2017–18 compared with the treatment contained in the 2018–19 Budget.



Contributed assets revenue was $30 million higher than estimated reflecting a range of factors including the donation of art work to the Art Gallery of South Australia.

Fines and penalties revenue was $13 million higher than the estimated result mainly due to higher than expected private court settlements that are passed through the state government. This is offset by corresponding higher expenditure associated with the pass through of these amounts to third parties.

Operating expenses

Table 1.6: Operating expenses ($million)

2017−18 Estimate at

2017−18 Budget


2018−19 Budget

2017−18 Outcome

Expenses Employee expenses 8 272 8 420 8 420 Superannuation expenses

Superannuation interest cost 363 348 348 Other superannuation expenses 850 866 805

Depreciation and amortisation 1 003 1 038 1 016 Interest expenses 426 423 443 Other property expenses — — — Other operating expenses 5 129 5 214 5 326 Grants 3 033 3 286 3 299 Total expenses 19 076 19 595 19 657


The final outcome for total operating expenses in 2017–18 was $62 million higher than the estimate reported in the 2018–19 Budget.

Employee expenses were in line with the estimated result.

Other superannuation expenses were $61 million lower than the estimated result primarily due to a reclassification from other superannuation expenses to other operating expenses in the Department for Education ($34.1 million) and to employee expenses in the South Australia Police ($21.1 million).

Depreciation and amortisation expenses were $22 million lower than the estimated result, primarily due to asset revaluations being lower than projected.

Interest expenses were $20 million higher than estimated, primarily due to higher accrued interest expense for the Treasurer’s Loan from the South Australian Government Financing Authority (SAFA).

Other operating expenses were $112 million higher than estimated primarily due to a reclassification in the Department for Education. Other operating expenses were also higher due to additional personal service contract costs related to the higher cost of caring for children in care, including backfilling of residential staff due to staff vacancies in the Department for Child Protection ($20.8 million).

Grants are broadly in line with the estimate at the 2018–19 Budget.



Net acquisition of non-financial assets

Table 1.7: Net acquisition of non-financial assets ($million)


2017–18 Budget


2018–19 Budget

2017–18 Outcome

Net acquisition of non-financial assets Purchases of non-financial assets 2 185 1 878 1 999 less Sales of non-financial assets 1 338 1 930 320 less Depreciation 1 003 1 038 1 016 plus Change in inventories — 3 1 plus Other movements in non-financial assets — — — equals Total net acquisition of non-financial assets - 157 -1 087 665


Purchases of non-financial assets were $121 million higher than the estimate at the time of the 2018–19 Budget, primarily due to accelerated or increased expenditure on capital projects and the receipt of contributed assets. This included higher than expected capital spending in the following agencies:

• the Department for Health and Wellbeing ($12.7 million), including Special Purpose Fund Projects($3.8 million), the Flinders Neo Natal Unit ($3.0 million) and reclassifications of operatingexpenditure to fund purchases of general plant and equipment ($2.4 million)

• the Department of Planning, Transport and Infrastructure ($11.3 million) largely associated withthe City Tram extension ($6.2 million)

• the Department for Correctional Services ($5.8 million) largely due to expenditure on additionalbeds at Mt Gambier Prison ($3.8 million)

and additional contributed assets in the following agencies:

• the Department for Environment and Water ($29.5 million) due to the recognition of Crown landadded to parks and reserves and the return of Crown land to the Minister that was previouslydedicated Crown land

• the Art Gallery of South Australia due to the receipt of donated assets and privately funded artpurchases ($7.9 million).

Sales of non-financial assets are $1.6 billion lower than the estimate at the time of the 201819 Budget, primarily due to the change in accounting treatment for the Land Services Commercialisation (LSC) transaction. The original treatment reflected the LSC as a sale of an intangible asset, however for the 2017–18 outcome the LSC is not recognised as an intangible asset.

Tables 1.8 and 1.9 summarise the variations to revenue, expenses and capital investment expenditure and the impact on net operating balance and net lending fiscal indicators in the general government sector since the estimates in the 2017–18 Budget.



Table 1.8: Net operating balance ― policy and parameter variations ($million)

2017–18

Estimate at 2017–18 Budget 72

Parameter and other variations Revenue — taxation 20 Revenue — other 83 Operating expenses - 49 Net effect of parameter and other variations 54

Policy measures up to the budget Revenue measures — taxation - 92 Revenue measures — other — Revenue — offsets 35 Operating expenses - 362 Net effect of policy measures up to the 2018–19 Budget - 419

Policy measures in the Budget Revenue — taxation — Revenue — other — Revenue offsets 5 Operating expenses - 109 Operating Savings 1 Net effect of policy measures in the 2018–19 Budget - 104

Estimate at 2018–19 Budget - 397

Parameter and other variations Revenue — taxation 1 Revenue — other 145 Operating expenses - 62 Net effect of parameter and other variations 84

Final outcome - 313


Table 1.9: Net lending ― policy and parameter variations ($million)

2017–18


Net effect of operating variations - 469

Investing variations(a) Net effect of parameter variations 994 Policy variations up to the 2018–19 Budget - 64 Policy variations in the 2018–19 Budget 1 Total investing variations 931


Net effect of operating variations after the 2018–19 Budget 84

Investing variations(a) Net effect of parameter variations -1 752 Final outcome - 977


(a) Investing variations relate to the movements in the net acquisition of non-financial assets.



Balance sheet indicators

The following sections provide key balance sheet indicators and associated commentary for both the general government sector and the non-financial public sector.

General government sector

Table 1.10: General government sector ― key balance sheet indicators

June 2017 Outcome

June 2018 Estimate at

2017–18 Budget


2018–19 Budget

June 2018 Outcome

Net debt $m 6 110 6 072 5 331 5 447 % of total revenue 33.1 31.7 27.8 28.2 Unfunded superannuation liability $m 11 448 10 898 11 207 11 288 % of total revenue 62.0 56.9 58.4 58.4 Net financial liabilities $m 21 614 21 483 21 013 22 816 % of total revenue 117.0 112.2 109.5 118.0 Net financial worth $m -1 990 -1 376 -1 070 -2 920 % of total revenue - 10.8 - 7.2 - 5.6 - 15.1 Net worth $m 42 433 41 943 43 917 43 085 % of total revenue 229.6 219.0 228.8 222.7

Net debt

Net debt in the general government sector is $116 million higher as at 30 June 2018 than estimated in the 2018–19 Budget. This is largely the result of a lower net lending surplus ($90 million) after adjusting for the accounting treatment of the Land Services Commercialisation transaction. The lower net lending surplus is the result of higher capital expenditure in the general government sector partly offset by the improvement in net operating balance.

The decrease in net debt from 30 June 2017 to 30 June 2018 is $663 million, which is largely driven by the proceeds from the Land Services Commercialisation transaction partially offset by the investing capital program as shown in the net lending result.

Table 1.11 provides details of the movement in general government net debt in 2017–18.



Table 1.11: General government sector net debt ($million)

30 June 2018 Estimate at 2018–19 Budget

30 June 2018 Outcome

Opening General government net debt as at June 2017 6 110 6 110

Increase in net debt: General government cash surplus (-) / deficit (+) - 796 - 703 Equity contributions granted 40 39 Decrease in net debt: Return of equity - 29 - 29 Other variations 6 30 Closing general government net debt 5 331 5 447


Unfunded superannuation liability

The unfunded superannuation liability is $11.3 billion at 30 June 2018. Changes in the liability since 30 June 2017 are the direct result of changes in the discount rate used to value the liability, along with differences between expected and actual earnings on investments and other factors such as demographic changes.

Table 1.12 provides details of the movements in the unfunded superannuation liability in 2017–18.

Table 1.12: Unfunded superannuation liability ($million)

Unfunded superannuation liability as at 30 June 2017 11 448 Nominal superannuation interest expense(a) 348 Past service payments - 426 Impact of change in discount rate from 3.1 per cent to 2.9 per cent(b) 465 Higher than expected returns on investments(c) - 323 Other movements(d) - 305 Estimate of 30 June 2018 unfunded superannuation liability as at 2018–19 Budget 11 207 Other movements(e) 81 Unfunded superannuation liability as at 30 June 2018 11 288


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

(b) The discount rate moved from 3.1 per cent at 30 June 2017 to 3.3 per cent at the time of the 2017–18 MYBR and thenreduced to 2.9 per cent at the time of the 2018–19 Budget. It is 2.9 per cent as at 30 June 2018.

(c) The forecast 2017–18 earnings rate at the time of the 2018–19 Budget was 11.7 per cent compared with the long-termearnings assumption of 7.0 per cent. It remained at 11.7 per cent at 30 June 2018.

(d) Resulting from transactions during the year, variances between the actual and expected experience, and changes to theactuarial assumptions for the Police Superannuation Scheme following the recent triennial review of that scheme.

(e) Movement resulting from differences between expected experience and actual experience for membership data such asbenefits and contributions paid.

The accounting standard for employee entitlements requires that superannuation benefits are valued at the net present value of future obligations. This is calculated by discounting the gross liability using market yields on government bonds. Small changes in the long-term bond rate can have a significant impact on the reported liability, irrespective of whether the underlying nature of the liability has changed.



The last of the government’s defined benefit superannuation schemes closed to new members in 1994. These schemes create a liability for the government to pay future benefits to members in accordance with the terms of the schemes. Since 1994−95, the government has had a target to fully fund the superannuation liability by 2034. In 2017−18, a $426 million payment was made by the government to the superannuation schemes as part of meeting this target.

Net financial liabilities

In addition to net debt and unfunded superannuation liabilities, net financial liabilities include other financial liabilities and financial assets (excluding equity held in public non-financial corporations and public financial corporations).

Net financial liabilities amounted to $22.8 billion at 30 June 2018, which is $1.8 billion higher than the estimate at the time of the 2018−19 Budget. The increase is largely the result of the revised accounting treatment of the Land Services Commercialisation transaction which has resulted in unearned revenue of $1.5 billion being recognised as a liability in the general government sector. In addition to the unearned revenue liability, a further $80 million has been recognised as a liability relating to the Exclusive Right to Negotiate, reflecting the possible repayment to Land Services SA if the state does not proceed with the commercialisation of another state registry or award an additional seven years on the contract.

Net worth

General government sector net worth increased by $652 million in 2017−18, largely due to the revaluation of non-financial assets in the general government sector offset by the net operating balance deficit and other economic flows.

The value of non-financial assets within the general government sector increased in 2017−18 by $916 million, mainly due to an increase in the value of buildings and structures held by the local health networks ($308 million), revaluation of network assets held by the Department of Planning, Transport and Infrastructure ($290 million), and a $127 million increase in the value of land under roads.

Non-financial public sector

Table 1.13 sets out the key balance sheet indicators for the non-financial public sector, which is comprised of the general government sector and the public non-financial corporations sector.



Table 1.13: Non-financial public sector ― key balance sheet indicators

June 2017 Outcome


2017–18 Budget


2018–19 Budget

June 2018 Outcome

Net debt $m 13 529 13 942 12 889 12 950 % of total revenue 69.6 68.9 63.6 63.5 Unfunded superannuation liability $m 11 448 10 898 11 207 11 288 % of total revenue 58.9 53.9 55.3 55.4 Net financial liabilities $m 29 200 29 510 28 733 30 564 % of total revenue 150.2 145.9 141.8 149.9 Net financial worth $m -28 042 -28 648 -27 271 -29 523 % of total revenue - 144.2 - 141.6 - 134.6 - 144.8 Net worth $m 42 433 41 943 43 917 43 085 % of total revenue 218.2 207.3 216.8 211.4

Net debt for the non-financial public sector at 30 June 2018 was $61 million higher than the estimate included in the 2018–19 Budget.

Between June 2017 and June 2018, non-financial public sector net debt decreased by $579 million to $13.0 billion. This is largely driven by the decrease in net debt in the general government sector. The public non-financial corporation component of net debt of $7.5 billion at 30 June 2018 was $84 million higher than at 30 June 2017.

The negative net financial worth position of the non-financial public sector of $29.5 billion is larger than the negative net financial worth of the general government sector of $2.9 billion. This variation largely reflects equity in the public non-financial corporations sector held by the general government sector and recognised as a financial asset of that sector. This asset is eliminated in the consolidation of the non-financial public sector.

The non-financial public sector net worth increase ($652 million) in 2017−18 is driven by the revaluation of non-financial assets in the general government sector as discussed earlier.



Chapter 2: Economic performance

The international and national economic context for the year 2017–18

The pace of world economic growth picked up in 2017–18. According to the International Monetary Fund, world growth accelerated from 3.3 per cent in 2016 to 3.7 per cent in 2017 and is projected to grow at 3.7 per cent in 2018. Advanced and emerging economies shared in the growth acceleration during 2017 with growth in advanced economies rising from 1.7 per cent to 2.3 per cent and, for emerging economies, rising from 4.4 per cent to 4.7 per cent.

Growth in the Australian economy (as measured by Gross Domestic Product) also picked up in 2017–18 to be 2.8 per cent following growth of 2.3 per cent in 2016–17. The major contributors to growth in 2017–18 were household consumption, public consumption, strengthening non-mining business investment and exports.

Economic growth in 2017–18 was supported by the Reserve Bank of Australia maintaining an accommodative monetary policy stance, which kept borrowing costs low for businesses and households.

The Australian dollar depreciated through the latter half of 2017–18 against both the US dollar and on a trade-weighted basis. It remains well below its 2011 peak, assisting in the transition away from mining investment-led growth to broader-based sources of economic growth.

South Australian economic performance for the year 2017–18

The South Australian economy grew by 2.0 per cent in 2017-18. This reflects strong performance over the year in the industries of health care and social assistance (up 8.6 per cent), professional, scientific and technical services (up 7.4 per cent) and construction (up 4.8 per cent).

State Final Demand (SFD), which measures total spending by households, business and governments in the South Australian economy, rose by a strong 3.3 per cent in real terms in 2017–18, exceeding the original 2017–18 Budget and updated 2018–19 Budget forecasts.

SFD growth in 2017–18 was broadly based. Growth in household consumption was 2.0 per cent, while private new business investment recorded a solid rise of 11 per cent. Growth in government consumption spending was 3.5 per cent during 2017–18, and public investment was 4.1 per cent higher in real terms (after adjusting for the transfer of the new Royal Adelaide Hospital from the private to the public sector following State Government sign-off on commercial acceptance in mid-June 2017).

The state’s labour market exhibited considerable strength in 2017–18 despite the closure of General Motors Holden and associated automotive suppliers. Employment rose by 2.1 per cent (higher than the original 2017–18 Budget forecast of 1 per cent). Although the participation rate increased over the period, the unemployment rate fell to 5.6 per cent in June 2018, down from 6.4 per cent a year earlier (trend estimates).

International tourism and education have increased in 2017–18. International student enrolments (calendar year to June 2018) were up 6.1 per cent compared to a year earlier. International tourist


numbers were up by 6.6 per cent in 2017-18, with spending by international tourists up by 8.0 per cent over the same period.

Winter crop production in South Australia fell by 35 per cent in 2017–18 following the record production level achieved in 2016–17. The 2017–18 winter crop production estimate of 6.9 million tonnes is only slightly lower than the 10-year average to 2016–17 of 7.1 million tonnes.

South Australia’s population grew by 11 600 (0.7 per cent) in the year to March 2018. Net overseas migration remained relatively unchanged (at 12 400 people) and there was a reduction in the net outflow of population to other states — down from 7400 in the year to March 2017 to 5700 in the year to March 2018.

Table 2.1: Economic Parameters –– Australia and South Australia growth rates (% per annum), 2017–18

2017–18 Forecast at 2017–18 Budget

2017–18 Forecast at 2018–19 Budget Outcome

Australia Gross Domestic Product (real terms) 2¾ 2¾ 2.8 South Australia Gross State Product (real terms) 2¼ 2¼ 2.0 State Final Demand (real terms) 2¼ 3 3.3 Employment 1 2.1 2.1 Consumer Price Index 2 2.2 2.2

Source: 2017–18 and 2018–19 Commonwealth Budgets and South Australian Budgets, and the Australian Bureau of Statistics.

Chapter 2: Economic Performance


Appendix A: Uniform presentation framework tables


UNIFORM PRESENTATION FRAMEWORK TABLES

Table A.1: General government sector operating statement ($million)

2017–18Estimate at

2018–19Budget

2017–18Outcome

Revenue Taxation revenue 4 557 4 558Grants 10 736 10 677Sales of goods and services 2 552 2 637Interest income 24 23Dividend and income tax equivalent income 650 677Other 679 771

Total revenue 19 198 19 344lessExpensesEmployee expenses 8 420 8 420Superannuation expenses

Superannuation interest cost 348 348Other superannuation expenses 866 805

Depreciation and amortisation 1 038 1 016Interest expenses 423 443Other property expenses — —Other operating expenses 5 214 5 326Grants 3 286 3 299

Total expenses 19 595 19 657equalsNet operating balance -397 -313

plusOther economic flows 1 881 867equalsComprehensive result – total change in net worth 1 484 554

Net operating balance -397 -313

lessNet acquisition of non-financial assetsPurchases of non-financial assets 1 878 1 999less Sales of non-financial assets 1 930 320less Depreciation 1 038 1 016plus Change in inventories 3 1plus Other movements in non-financial assets — —

equals Total net acquisition of non-financial assets -1 087 665equalsNet lending / borrowing 690 -977




Table A.2: Public non-financial corporations (public trading enterprises) sectoroperating statement ($million)


2018–19Budget

2017–18Outcome

Revenue Taxation revenue — —Grants 497 480Sales of goods and services 1 738 1 858Interest income 5 5Dividend and income tax equivalent income 4 2Other 179 86

Total revenue 2 423 2 431

lessExpensesEmployee expenses 208 206Superannuation expenses

Superannuation interest cost — —Other superannuation expenses 26 27

Depreciation and amortisation 454 474Interest expenses 287 281Other property expenses 225 253Other operating expenses 1 207 1 246Grants 43 16


plusOther economic flows 43 475equals

Comprehensive result – total change in net worth 15 404


lessNet acquisition of non-financial assetsPurchases of non-financial assets 702 683less Sales of non-financial assets 143 111less Depreciation 454 474plus Change in inventories -7 -34plus Other movements in non-financial assets — —

equals Total net acquisition of non-financial assets 98 63equalsNet lending / borrowing -126 -134




Table A.3: Non-financial public sector operating statement ($million)


2018–19Budget

2017–18Outcome

Revenue Taxation revenue 4 202 4 198Grants 10 730 10 678Sales of goods and services 4 023 4 208Interest income 25 24Dividend and income tax equivalent income 432 429Other 848 847

Total revenue 20 261 20 384

lessExpensesEmployee expenses 8 629 8 626Superannuation expenses

Superannuation interest cost 348 348Other superannuation expenses 892 832

Depreciation and amortisation 1 492 1 490Interest expenses 705 720Other property expenses — —Other operating expenses 5 792 5 917Grants 2 827 2 835


plusOther economic flows 1 909 938equals

Comprehensive result – total change in net worth 1 484 554


lessNet acquisition of non-financial assetsPurchases of non-financial assets 2 572 2 682less Sales of non-financial assets 2 065 431less Depreciation 1 492 1 490plus Change in inventories -4 -33plus Other movements in non-financial assets — —

equals Total net acquisition of non-financial assets -989 728equalsNet lending / borrowing 564 -1 112




Table A.4: Public financial corporations sector operating statement ($million)

2017–18Outcome

Revenue Taxation revenue —Grants 21Sales of goods and services 827Interest income 1 029Dividend and income tax equivalent income 71Other 113

Total revenue 2 062

lessExpensesEmployee expenses 35Superannuation expenses

Superannuation interest cost —Other superannuation expenses 4

Depreciation and amortisation 44Interest expenses 932Other property expenses 425Other operating expenses 908Grants —

Total expenses 2 349equalsNet operating balance -288

plusOther economic flows 170equals

Comprehensive result – total change in net worth -118

Net operating balance -288

lessNet acquisition of non-financial assetsPurchases of non-financial assets 80less Sales of non-financial assets 614less Depreciation 44plus Change in inventories —plus Other movements in non-financial assets —

equals Total net acquisition of non-financial assets -577equalsNet lending / borrowing 289




Table A.5: General government sector balance sheet ($million)


2018–19Budget

2017–18Outcome

AssetsFinancial assets

Cash and deposits 1 285 1 506Advances paid 129 69Investments, loans and placements 379 408Receivables 646 647Equity

Investments in other public sector entities 19 943 19 896Investments — other 28 28

Other financial assets 112 91

Total financial assets 22 522 22 646

Non-financial assetsLand and other fixed assets 44 967 45 972Other non-financial assets 20 32

Total non-financial assets 44 987 46 005

Total assets 67 509 68 650

LiabilitiesDeposits held 354 399Advances received 231 231Borrowing 6 539 6 801Superannuation 11 207 11 288Other employee benefits 2 932 2 907Payables 1 230 1 103Other liabilities 1 099 2 836

Total liabilities 23 591 25 565

Net Worth 43 917 43 085

Net financial worth (a) -1 070 -2 920Net financial liabilities 21 013 22 816Net debt (b) 5 331 5 447

Note: Totals may not add due to rounding.(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.



Table A.6: Public non-financial corporations (public trading enterprises) sectorbalance sheet ($million)


2018–19Budget

2017–18Outcome


Cash and deposits 300 305Advances paid — —Investments, loans and placements 19 21Receivables 282 246Equity

Investments in other public sector entities — —Investments — other 13 15


Total financial assets 630 605




LiabilitiesDeposits held — —Advances received 33 33Borrowing 7 843 7 794Superannuation — —Other employee benefits 72 73Payables 283 358Other liabilities 121 95


Net Worth 18 481 18 856


Note: Totals may not add due to rounding.(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.



Table A.7: Non-financial public sector balance sheet ($million)


2018–19Budget

2017–18Outcome


Cash and deposits 1 373 1 603Advances paid 96 36Investments, loans and placements 398 429Receivables 900 801Equity

Investments in other public sector entities 1 462 1 040Investments — other 42 43


Total financial assets 4 392 4 045




LiabilitiesDeposits held 143 191Advances received 231 231Borrowing 14 383 14 596Superannuation 11 207 11 288Other employee benefits 3 004 2 980Payables 1 471 1 383Other liabilities 1 224 2 899


Net Worth 43 917 43 085


Note: Totals may not add due to rounding.(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.



Table A.8: Public financial corporations sector balance sheet ($million)

2017–18Outcome


Cash and deposits 546Advances paid 14 254Investments, loans and placements 8 616Receivables 375Equity

Investments in other public sector entities —Investments — other 2 211

Other financial assets 6

Total financial assets 26 008

Non-financial assetsLand and other fixed assets 191Other non-financial assets 5

Total non-financial assets 196

Total assets 26 203

LiabilitiesDeposits held 189Advances received —Borrowing 20 078Superannuation —Other employee benefits 11Payables 219Other liabilities 4 667

Total liabilities 25 163

Net Worth 1 040

Net financial worth (a) 845Net financial liabilities -845Net debt (b) -3 150

Note: Totals may not add due to rounding.(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.



Table A.9: General government sector cash flow statement ($million)


2018–19Budget

2017–18Outcome

Cash receipts from operating activitiesTaxes received 4 553 4 659Receipts from sales of goods and services 2 537 2 639Grants and subsidies received 10 781 10 748Interest receipts 24 31Dividends and income tax equivalents 745 725Other receipts 662 2 306

Total operating receipts 19 303 21 108

Cash payments for operating activitiesPayments for employees -9 703 -9 561Payments for goods and services -4 617 -4 885Grants and subsidies paid -3 396 -3 376Interest paid -423 -440Other payments -415 -440

Total operating payments -18 554 -18 703

Net cash flows from operating activities 749 2 405

Net cash flows from investmentsin non-financial assetsSales of non-financial assets 1 902 275Purchases of non-financial assets (a) -1 855 -1 978

Net cash flows from investmentsin non-financial assets 47 -1 703

Net cash flows from investments in financialassets for policy purposes (b) -77 -19

Net cash flows from investments in financialassets for liquidity purposes -9 -16

Net cash flows from financing activitiesAdvances received (net) 2 2Borrowing (net) -758 -508Deposits received (net) 80 124Dividends paid — —Other financing (net) — —

Net cash flows from financing activities -675 -382

Net increase/(decrease) in cash held 35 286

Net cash flows from operating activities 749 2 405Net cash flows from investmentsin non-financial assets 47 -1 703

Dividends paid — —

Cash surplus / (deficit) 796 703

Note: Totals may not add due to rounding.(a) The ABS disaggregates this item into new and secondhand non-financial assets.(b) Includes equity acquisitions and disposals.



Table A.10: Public non-financial corporations (public trading enterprises) sector cash flow statement ($million)


2018–19Budget

2017–18Outcome

Cash receipts from operating activitiesTaxes received — —Receipts from sales of goods and services 1 651 1 801Grants and subsidies received 497 480Interest receipts 5 6Dividends and income tax equivalents 4 2Other receipts 220 102


Cash payments for operating activitiesPayments for employees -247 -244Payments for goods and services -804 -802Grants and subsidies paid -43 -19Interest paid -288 -284Other payments -437 -420


Net cash flows from operating activities 558 621

Net cash flows from investmentsin non-financial assetsSales of non-financial assets 143 114Purchases of non-financial assets (a) -678 -653

Net cash flows from investmentsin non-financial assets -534 -539

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

Net cash flows from investments in financialassets for liquidity purposes — -1

Net cash flows from financing activitiesAdvances received (net) 30 28Borrowing (net) 97 47Deposits received (net) — —Dividends paid -156 -154Other financing (net) — —


Net increase/(decrease) in cash held -6 1

Net cash flows from operating activities 558 621Net cash flows from investmentsin non-financial assets -534 -539

Dividends paid -156 -154

Cash surplus / (deficit) -133 -73




Table A.11: Non-financial public sector cash flow statement ($million)


2018–19Budget

2017–18Outcome

Cash receipts from operating activitiesTaxes received 4 199 4 319Receipts from sales of goods and services 3 978 4 214Grants and subsidies received 10 775 10 748Interest receipts 25 32Dividends and income tax equivalents 515 491Other receipts 817 2 338


Cash payments for operating activitiesPayments for employees -9 937 -9 793Payments for goods and services -5 182 -5 414Grants and subsidies paid -2 937 -2 916Interest paid -706 -720Other payments -395 -430


Net cash flows from operating activities 1 151 2 871

Net cash flows from investmentsin non-financial assetsSales of non-financial assets 2 037 389Purchases of non-financial assets (a) -2 524 -2 631

Net cash flows from investmentsin non-financial assets -487 -2 242

Net cash flows from investments in financialassets for policy purposes (b) -48 9

Net cash flows from investments in financialassets for liquidity purposes -9 -17

Net cash flows from financing activitiesAdvances received (net) 2 2Borrowing (net) -661 -461Deposits received (net) — 49Dividends paid — —Other financing (net) — —


Net increase/(decrease) in cash held -51 211

Net cash flows from operating activities 1 151 2 871Net cash flows from investmentsin non-financial assets -487 -2 242

Dividends paid — —





Table A.12: Public financial corporations sector cash flow statement ($million)

2017–18Outcome

Cash receipts from operating activitiesTaxes received —Receipts from sales of goods and services 819Grants and subsidies received 21Interest receipts 1 031Dividends and income tax equivalents 71Other receipts 48

Total operating receipts 1 990

Cash payments for operating activitiesPayments for employees -53Payments for goods and services -118Grants and subsidies paid —Interest paid -932Other payments -719

Total operating payments -1 822

Net cash flows from operating activities 168

Net cash flows from investmentsin non-financial assetsSales of non-financial assets 614Purchases of non-financial assets (a) -80

Net cash flows from investmentsin non-financial assets 533

Net cash flows from investments in financialassets for policy purposes (b) 149

Net cash flows from investments in financialassets for liquidity purposes -207

Net cash flows from financing activitiesAdvances received (net) —Borrowing (net) 38Deposits received (net) -77Dividends paid -405Other financing (net) —

Net cash flows from financing activities -444

Net increase/(decrease) in cash held 200

Net cash flows from operating activities 168Net cash flows from investmentsin non-financial assets 533

Dividends paid -387

Cash surplus / (deficit) 314




Table A.13: General government sector derivation of ABS GFS cash surplus/deficit ($million)


2018–19Budget

2017–18Outcome


Acquisitions under finance leasesand similar arrangements (a) — —

ABS GFS Surplus (+)/deficit (-)including finance leases and similar arrangements 796 702

Table A.14: Public non-financial corporations (public trading enterprises) sectorderivation of ABS GFS cash surplus/deficit ($million)

Cash surplus / (deficit) -133 -73


ABS GFS Surplus (+)/deficit (-)including finance leases and similar arrangements -133 -73

Table A.15: Non-financial public sector derivation of ABS GFS cash surplus/deficit ($million)



ABS GFS Surplus (+)/deficit (-)including finance leases and similar arrangements 663 629

Table A.16: Public financial corporations sector derivation of ABS GFS cashsurplus/deficit ($million) (b)

Cash surplus / (deficit) 314

Acquisitions under finance leasesand similar arrangements (a) —

ABS GFS Surplus (+)/deficit (-)including finance leases and similar arrangements 314

Note: Totals may not add due to rounding.(a) Finance leases are shown with a negative sign as they are deducted in compiling

the ABS GFS cash surplus/deficit.(b) Forward estimates are not collected for public financial corporations



Table A.17: General government sector taxes ($million) (a)


2018–19Budget

2017–18Outcome

Taxes on employers' payroll and labour force 1 204 1 205

Taxes on propertyLand taxes 594 595Stamp duties on financial and capital transactions 972 967Other 287 289

Total 1 853 1 851

Taxes on the provision of goods and servicesTaxes on gambling 396 395Taxes on insurance 460 460

Total 856 855

Taxes on use of goods and performance of activitiesMotor vehicle taxes 644 648

Total 644 648

Total GFS taxation revenue 4 557 4 558



Table A.18(a): General government sector grant revenue ($million)


2018–19Budget

2017–18Outcome

Current grant revenueCurrent grants from the Commonwealth

General purpose grants 6 375 6 343National partnership grants 316 328National partnership grants for on-passing 190 188Specific purpose grants 2 017 2 012Specific purpose grants for on-passing 871 871

Total current grants from the Commonwealth 9 769 9 743

Other contributions and grants 141 130

Total current grant revenue 9 910 9 873

Capital grant revenueCapital grants from the Commonwealth

General purpose grants — —National partnership grants 716 700Specific purpose grants 95 95Specific purpose grants for on-passing — —Other capital grants 8 8

Total capital grants from the Commonwealth 819 803

Other contributions and grants 7 —

Total capital grant revenue 826 804

Total grant revenue 10 736 10 677

Table A.18(b): General government sector grant expense ($million)


2018–19Budget

2017–18Outcome

Current grant expenseState/territory government 3 15Local government 72 56Local government on-passing 185 182Private and not-for-profit sector 1 321 1 304Private and not-for-profit sector on-passing 877 878Grants to other sectors of government 507 513Other 241 252

Total current grant expense 3 205 3 199

Capital grant expenseState/territory government — —Local government 8 12Local government on-passing — —Private and not-for-profit sector 72 88Private and not-for-profit sector on-passing — —Grants to other sectors of government — —Other — —

Total capital grant expense 80 100

Total grant expense 3 286 3 299Note: Totals may not add due to rounding.



Table A.19: General government sector dividend and tax equivalent income ($million)


2018–19Budget

2017–18Outcome

Dividend and income tax equivalent income from PNFC sector 222 250Dividend and income tax equivalent income from PFC sector 427 425Other dividend income 1 2

Total dividend and income tax equivalent income 650 677




Table A.20: General government sector expenses by function ($million)(a)(b)(c)


2018–19 Budget

2017–18 Outcome

General public services 1 365 1 360 Executive and legislative organs, financial and fiscal affairs, 216 293 external affairs Foreign economic aid — — General services 114 123 Basic research — — Research and development — general public services — — Public debt transactions 771 791 Transfers of a general character between different levels of government 194 115 General public services not elsewhere classified 70 38

Defence(d) — —

Public order and safety 1 945 1 956 Police services 875 872 Civil and fire protection services 295 320 Law courts 409 377 Prisons 345 364 Research and development — public order and safety — — Public order and safety not elsewhere classified 21 23

Economic affairs 692 737 General economic, commercial and labour affairs 128 198 Agriculture, forestry, fishing and hunting 104 101 Fuel and energy 165 166 Mining, manufacturing and construction 50 21 Communication 34 21 Other industries 128 152 Research and development — economic affairs 82 78 Economic affairs not elsewhere classified 1 1

Environmental protection 439 400 Waste management 1 1 Waste water management 12 8 Pollution abatement 38 40 Protection of biodiversity and landscape 387 351 Research and development — environmental protection 1 — Environmental protection not elsewhere classified — —

Housing and community amenities 662 698 Housing development 325 365 Community development 145 142 Water supply 192 190 Street lighting — — Research and development — housing and community amenities — — Housing and community amenities not elsewhere classified 1 1

Health 6 036 6 048 Medical products, appliances and equipment 51 50 Outpatient services 570 557 Hospital services 4 709 4 611 Mental health institutions — 37 Community health services 380 453 Public health services 169 165 Research and development — health 19 37 Health not elsewhere classified 137 136



Table A.20: General government sector expenses by function ($million) (a)(b)(c) (continued)


2018−19 Budget 2017−18

Outcome Recreation, culture and religion 373 414

Recreational and sporting services 130 152 Cultural services 232 257 Broadcasting and publishing services — — Religious and other community services 1 — Research and development — recreation, culture and religion — — Recreation, culture and religion not elsewhere classified 10 5

Education 4 816 4 738 Pre-primary and primary education 2 564 2 691 Secondary education 1 593 1 466 Tertiary education 576 480 Education not definable by level 3 22 Subsidiary services to education 51 71 Research and development — education — — Education not elsewhere classified 30 8

Social protection 2 030 2 078 Sickness and disability 842 918 Old age 121 107 Survivors 25 2 Family and children 438 527 Unemployment — — Housing 177 85 Social exclusion not elsewhere classified 396 416 Research and development — social protection — — Social protection not elsewhere classified 31 23

Transport 1 236 1 227 Road transport 587 657 Bus transport — 246 Water transport 24 18 Railway transport 74 246 Air transport 6 9 Multi-mode urban transport 512 41 Pipeline and other transport — — Research and development — transport 2 — Transport not elsewhere classified 31 10

Total GFS expenses 19 595 19 657


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

(b) The 2017-18 Final Budget Outcome is the first time actual results have been presented using the Classifications of theFunctions of Government- Australia (COFOG-A) coding system which replaced the former Government PurposeClassification (GPC).

(c) Some functional classifications are not readily distinguisable at agency level. Those instances are denoted as notavailable (n.a.).

(d) The ABS defines ‘defence’ as expenditure on military and civil defence affairs, foreign military aid and defence research.The expenditure of DefenceSA is included in other economic affairs.



Table A.21: General government sector capital expenditure by function ($million)(a)(b)


2018–19 Budget

2017–18 Outcome

General public services 23 26 Defence(c) — — Public order and safety 118 131 Economic affairs 68 56 Environmental protection 23 42 Housing and community amenities 36 37 Health 242 260 Recreation, culture and religion 66 79 Education 243 240 Social protection 4 5 Transport 1 054 1 125 Total capital expenditure 1 878 1 999


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

(b) The 2017-18 Final Budget Outcome is the first time actual results have been presented using the Classifications of theFunctions of Government- Australia (COFOG-A) coding system which replaced the former Government PurposeClassification (GPC).

(c) The ABS defines ‘defence’ as expenditure on military and civil defence affairs, foreign military aid and defence research.The expenditure of DefenceSA is included in other economic affairs.

Table A.22: General government sector net worth ($million)

2017–18 Estimated Result

2017–18 Outcome

Net worth at 30 June 2017 42 433 42 433 Total prior period adjustments — 98 Restated net worth at beginning of year 42 433 42 531 Change in net worth from operating transactions: Net operating balance - 397 - 313 Change in net worth from other economic flows: Movement in net assets of PNFCs(a) - 14 305 Movement in net assets of PFCs(a) 322 - 100 Revaluation of non-financial assets 41 916 Writedown of non-financial assets — - 44 Revaluation of unfunded superannuation liability 163 82 Revaluation of annual leave liability - 15 - 16 Revaluation of long service leave liability - 94 - 65 Commercialisation of Land Title services 1 605 — Revaluation of workers compensation liability - 146 - 83 Current year adjustments to equity — - 82 Other revaluation adjustments 20 - 47 Subtotal

Total other economic flows 1 881 867 Net worth at 30 June 2018 43 917 43 085


(a) Net of equity injections from, and the return of equity to, the general government sector.



2017-18 2017-18Budget Outcome

ReceiptsTaxation 3 984 773 3 958 033Commonwealth general purpose grants 6 302 600 6 419 185Commonwealth specific purpose grants 308 240 306 691Commonwealth National Partnership payments 60 835 45 150Contributions from state undertakings 298 098 391 237Fees and charges 553 896 524 925Recoveries 93 143 419 920Royalties 251 008 236 604Other receipts 477 503 1 970 277Total receipts 12 330 096 14 272 021

PaymentsAppropriation Act 13 942 460 14 266 707Specific appropriation authorised in various Acts 110 411 124 285Total payments 14 052 871 14 390 992

Consolidated Account Financing Requirement(+)/surplus(-) 1 722 775 118 970


Appendix B: Consolidated Account

Table B.1: Summary of receipts and payments ($000)



Taxation Payroll tax 1 398 205 1 462 118Commonwealth places mirror payroll tax(a) 24 500 25 559Stamp duties 1 489 005 1 468 388Commonwealth places mirror stamp duties(a) 268 250Land tax 599 199 605 045Commonwealth places mirror land tax(a) 1 500 1 510Other taxes on property — 5Gaming machines tax 275 874 267 968Contribution from SA Lotteries 72 168 75 393Contribution from casino operations 18 300 16 533Contribution from on-course totalizators, bookmakers and small lotteries 2 754 2 858Betting Operations Tax 30 000 32 405South Australian major bank levy(b) 73 000 —Total taxation receipts 3 984 773 3 958 033

Commonwealth general purpose paymentsGST revenue grants 6 302 600 6 419 185Total Commonwealth general purpose payments 6 302 600 6 419 185

Commonwealth specific purpose payments(c)

Council of Australian Governments funding arrangements 308 240 306 691Natural disaster relief and recovery arrangements — — Total Commonwealth specific purpose payments 308 240 306 691

Commonwealth National Partnership payments(d)

Council of Australian Governments funding arrangements 60 835 45 150

Note: Totals may not add due to rounding. (a) Taxes akin to state taxes are levied on activities conducted on Commonwealth places under the authority of Commonwealth mirror tax legislation. Revenue is retained by the state.(b) A South Australian major bank levy was to be introduced from 1 July 2017 but was not passed by the South Australian Parliament(c) Refers only to those Commonwealth specific purpose payments paid to the Consolidated Account.(d) Refers only to National Partnership payments that are paid to Consolidated Account. The remainder of National Partnership payments are paid into the Intergovernmental Agreement on Federal Financial Relations special deposit account for subsequent disbursement to the relevant line agencies.

Table B.2: Receipts ($000)




Contributions from state undertakingsAdelaide Cemeteries Authority Income tax equivalent 98 69Adelaide Venue Management Corporation Dividend 1 600 1 600Arrangements with private electricity entities Local government rate equivalent 248 243Department of Planning, Transport and Infrastructure Income tax equivalent 2 614 35 Local government rate equivalent 1 041 1 967Flinders Ports Payment of lieu of other taxes 2 625 5 177ForestrySA Dividend 5 962 — Funds SA Local government rate equivalent 233 — HomeStart Finance Dividend 6 510 19 104 Income tax equivalent 4 650 6 234Public Trustee Dividend 381 899 Income tax equivalent 251 267Renewal SA Dividend 13 853 9 150 Income tax equivalent 3 178 4 300 Local government rate equivalent 3 534 786Return to Work Corporation of South Australia Income tax equivalent — 73 371South Australian Water Corporation Dividend 138 768 139 412 Income tax equivalent 81 636 75 986 Local government rate equivalent 1 979 1 805Scope Global Pty Ltd (formerly Austraining Pty Ltd) Income tax equivalent 600 — South Australian Government Employee Residential Properties Dividend 1 706 3 412 Income tax equivalent 465 — South Australian Government Financing Authority Dividend 15 700 26 400 Income tax equivalent 10 380 20 973West Beach Trust

Income tax equivalent 86 46

Total contributions from state undertakings 298 098 391 237Note: Totals may not add due to rounding.

Table B.2: Receipts ($000) (continued)




Fees and charges(e)

Auditor-General's Department — fees for audit and other sundry receipts 15 075 15 070Court fines 67 458 74 692Court regulatory fees 37 471 21 010Guarantee fees 155 224 146 396Infringement notice schemes — expiation fees 72 541 70 359Land and business regulations 1 789 —Land Services regulatory fees 204 120 197 266Small lotteries 181 —Sundry fees 37 132Total fees and charges 553 896 524 925

RecoveriesAdelaide Oval Sublease Fees 400 400Commonwealth Natural Disaster Relief — 4 039Department of Planning, Transport and Infrastructure — indentured ports 10 621 20 556Department for Environment and Water — Qualco Sunlands 250 —Essential Services Commission of South Australia 13 356 13 356Government Banking Contract Rebate 1 136 1 902Helicopter service — recovery of costs and sponsorships 1 071 1 866Housing Loan Redemption Fund — 11 581Independent Gaming Corporation contribution to GamblersRehabilitation Fund 2 000 2 000Metropolitan Drainage Fund 7 —National Tax Equivalent Program 50 —NRM Levy - Treasurer's Water Licences 376 —Off-course wagering services annual fee — 1 150Return of cash by Defence SA to Consolidated Account following the transfer of the Techport Common User Facility to the Commonwealth 30 377 30 377Return of cash to Consolidated Account — cash alignment policy — 316 405Return of deposit account balances — 6 803Return of deposit account balances — superannuation 30 000 —South Australian Murray Darling Basin Natural Resources — 2 000Sale of government publications and subscriptions 212 —Sundry recoupment 961 32Unclaimed monies and personal property 2 326 7 454Total recoveries 93 143 419 920

RoyaltiesDepartment of Premier and Cabinet 251 008 236 604Total royalties 251 008 236 604

Note: Totals may not add due to rounding. (e) Refers to only those fees and charges paid to the Consolidated Account.

Table B.2: Receipts ($000) (continued)



p p , p


Other receipts

InterestInterest on investments 120 849 102 698Interest recoveries from general government entities 1 703 972Interest recoveries from the private sector 95 —

Repayment of advancesAdministered items for the Department of Planning, Transport and Infrastructure 209 321Department for Health and Ageing 3 546 3 546Department of Primary Industries and Regions 1 000 4 810Renmark Irrigation Trust 79 83Royal Zoological Society of South Australia 263 263Sea Dragon Lodge — 6

Repayment of equityAdelaide Festival Centre Trust — 10 697South Australian Water Corporation 63 780 — Defence SA 101 823 101 823

OtherOther recoveries 7 732 5Sale of land and buildings 176 424 140 053Proceeds from appointing an exclusive service provider for land services — 1 605 000Total other receipts 477 503 1 970 277


Table B.2: Receipts($000) (continued)




Payments from Appropriation ActAttorney-General's Department 117 786 112 457Administered items for the Attorney-General's Department 94 269 126 184Auditor-General's Department 17 219 17 219Courts Administration Authority 94 066 81 089Defence SA 18 478 18 457Department for Child Protection 479 666 519 620Department for Correctional Services 341 779 341 501Department for Education (f) 2 506 014 2 485 722Administered Items for the Department for Education (f) 254 385 260 413Department for Environment and Water (f) 153 209 153 699Administered items for the Department for Environment and Water (f) 27 551 22 918Department for Health and Wellbeing(f) 3 748 814 3 851 857Department of Human Services(f) 1 157 391 1 263 685Administered Items for the Department of Human services(f) 196 289 195 845Department of Planning, Transport and Infrastructure 860 944 869 844Administered items for the Department of Planning, Transport and infrastructure 9 208 9 128Department of the Premier and Cabinet 260 146 266 728Administered items for the Department of the Premier and Cabinet 1 976 1 976Department of Primary Industries and Regions 108 461 111 722Administered items for the Department of Primary Industries and Regions 4 788 4 788Department of State Development 683 049 683 049Administered Items for the Department of State Development 13 911 13 911Department of Treasury and Finance 70 268 120 765Administered items for the Department of Treasury and Finance 1 752 379 1 752 379Electoral Commission of South Australia 17 332 20 673Administered items for Electoral Commission of South Australia 456 810House of Assembly 7 485 7 485Independent Gambling Authority 1 849 1 849Joint Parliamentary Services 12 396 12 396Administered items for Joint Parliamentary Services 2 638 2 667Legislative Council 5 367 5 367Minister for Trade, Tourism and Investment(g) 5 039 5 039South Australian Mental Health Commission 2 011 2 011South Australia Police 821 399 817 216Administered items for South Australia Police 59 59South Australian Tourism Commission 89 112 100 908State Governor's Establishment 5 271 5 271

Total payments appropriated for administrative units, statutory authorities and ministers 13 942 460 14 266 707

Payments for which specific appropriation is authorised in various Acts 110 411 124 285 Note: Totals may not add due to rounding. (f) Reflect the machinery of government changes proclaimed and operative from 17 May 2018(g) Reflect the Minister for Tourism being disolved effective 22 March 2018

Table B.3: Payments ($000)




Payments for which specific appropriation is authorised in various Acts

Salaries and allowancesAgent-General — pursuant to Agent-General Act 1901 157 136Auditor-General — pursuant to Public Finance and Audit Act 1987 326 330Commissioners of Environment, Resourceand Development Court— pursuant to Remuneration Act 1990 1 188 1 184Commissioner of Police — pursuant to Police Act 1998 465 612State Coroner and Deputy Coroner — pursuant to Remuneration Act 1990 890 1 215Electoral Commissioner and Deputy Electoral Commissioner —pursuant to Electoral Act 1985 446 489Governor — pursuant to Constitution Act 1934 355 344Health and Community Services Complaints Commissioner —pursuant to Remuneration Act 1990 128 148Judges — pursuant to Remuneration Act 1990

Chief Justice 726 732Judges and Masters 22 724 23 633

Magistrates — pursuant to Remuneration Act 1990 15 726 15 656Members of various standing committees — pursuant toParliamentary Remuneration Act 1990 and Parliamentary Committees Act 1991 253 170Ombudsman — pursuant to Ombudsman Act 1972 408 392Parliamentary salaries and electorate other allowances —pursuant to Parliamentary Remuneration Act 1990

Ministers, Officers and Members of Parliament 18 506 18 257Senior Judge and judges of the Industrial Relations Courtand Commission — pursuant to Remuneration Act 1990 2 010 1 941Solicitor-General — pursuant to Solicitor-General Act 1972 666 607South Australian Civil and Administrative Tribunal —pursuant to Remuneration Act 1990 600 766Valuer-General — pursuant to Valuation of Land Act 1971 141 206Total salaries and allowances 65 715 66 819

OtherCompensation for injuries resulting from criminalacts — pursuant to Victims of Crime Act 2001 8 639 8 639Electoral Commission Public Funding — 6 051First Home Owner Grant — pursuant to First Home and Housing ConstructionGrants Act 2000 (formerly First Home Owner Grant Act 2000) 36 057 42 776Total other 44 696 57 466

Total payments for which specific appropriation is authorised invarious Acts 110 411 124 285Note: Totals may not add due to rounding.

Table B.4: Appropriation authorised in various Acts ($000)



Appendix C: General government and non-financial public sector financial statistics time series

The following tables provide historical data on key fiscal aggregates. Data provided (excluding the unfunded superannuation liability) are sourced for 1998−99 from Australian Bureau of Statistics Government Finance Statistics 2007−08 (catalogue number 5512.0) and 1999−2000 to 2016−17 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. Before 1998−99, government finances were measured using a cash-based methodology.

Gross State Product (GSP) and Consumer Price Index (for real-growth calculations) data is sourced from the latest Australian Bureau of Statistics (ABS) publications.

As historical data in this time series has not been back-cast to reflect classification and accounting changes, care must be taken in interpreting the data.

General government

Table C.1: General government key operating statement aggregates

Net operating

balance

Net acquisition

of non-financial

assetsNet

lending

$m% real

growth%

GSP $m% real growth

% GSP $m $m $m

1998–99 7 290 16.5 7 505 17.0 - 215 19 - 2331999–2000 7 644 2.3 16.4 7 974 3.6 17.1 - 330 140 - 4712000–01 8 108 3.0 16.3 8 406 2.4 16.9 - 297 102 - 3992001–02 8 538 2.1 15.9 8 713 0.5 16.2 - 174 - 50 - 1242002–03 9 346 5.2 16.5 8 898 -1.8 15.7 448 34 4142003–04 9 955 3.4 16.7 9 570 4.4 16.0 385 - 38 4242004–05 10 592 3.9 17.1 10 368 5.8 16.8 224 105 1192005–06 11 242 2.9 17.1 11 040 3.3 16.8 202 119 832006–07 11 757 1.9 16.6 11 547 1.9 16.3 209 139 712007–08 12 879 6.1 16.8 12 414 4.1 16.2 464 242 2222008–09 13 531 1.9 16.8 13 764 7.5 17.1 - 233 639 - 8722009–10(a) 15 534 12.3 18.3 15 347 9.1 18.1 187 1 279 -1 0922010–11(a) 15 017 -6.3 16.5 15 069 -4.9 16.6 - 53 1 370 -1 4222011–12 15 905 3.2 17.1 16 164 4.5 17.4 - 258 839 -1 0982012–13 15 333 -5.5 16.1 16 282 -1.3 17.1 - 948 55 -1 0032013–14(b) 15 343 -2.4 15.7 16 415 -1.7 16.8 -1 071 661 -1 7332014–15 16 549 6.2 16.7 16 738 0.4 16.9 - 189 - 78 - 1112015–16 17 362 4.0 17.4 17 062 1.1 17.1 300 204 962016–17 18 480 4.8 17.8 18 037 4.1 17.4 443 2 814 -2 3712017–18 19 344 2.3 18.0 19 657 6.6 18.3 - 313 665 - 977

Revenue Expenses



(a) In 2009–10 and 2010−11 revenue, expenses and net acquisition of non-financial assets are impacted by the Commonwealth Government’s Nation Building ― Economic Stimulus Plan.

(b) There is a structural break in 2013–14 in the presentation of interest income and interest expense. Interest income earned on cash and deposits is offset with interest expense on the borrowings the Treasurer has with the South Australian Government Financing Authority (SAFA). This results in a reduction to interest income and interest expense accordingly.

Table C.2: General government key balance sheet aggregates ($million)

(b) Unfunded Net financial Net financial Net% of % of superannuation liabilities worth worth

As at 30 June $m revenue GSP $m $m $m $m1988 8591989 6941990 8541991 1 8171992 4 6101993 7 8841994 7 1131995 5 8151996 5 5121997 4 9831998 4 7621999 4 779 65.6 10.8 3 909 9 733 1 894 10 6242000 1 920 25.1 4.1 3 543 6 911 2 986 12 4452001 1 246 15.4 2.5 3 249 6 093 4 091 14 8162002 1 303 15.3 2.4 3 998 6 907 3 559 14 7212003 666 7.1 1.2 4 445 6 974 3 500 15 2882004 224 2.3 0.4 5 668 7 858 3 842 15 7602005 144 1.4 0.2 7 227 9 393 3 853 16 3592006 - 119 -1.1 -0.2 6 146 8 171 5 846 19 7032007(c ) - 24 -0.2 0.0 5 075 7 254 8 110 22 1282008(d)(e)(f) - 276 -2.1 -0.4 6 468 8 078 7 580 23 7412009 475 3.5 0.6 8 939 11 562 5 551 24 1462010 1 402 9.0 1.7 9 478 13 182 6 551 36 2312011 2 930 19.5 3.2 9 096 14 313 7 299 40 9582012(g) 4 165 26.2 4.5 13 523 20 332 1 413 37 1992013 5 227 34.1 5.5 11 085 19 079 1 742 39 3632014(h) 7 071 46.1 7.2 10 877 20 761 1 056 39 6542015(i) 3 929 23.7 4.0 11 358 18 296 1 374 40 1212016(j) 4 393 25.3 4.4 14 029 21 372 -2 049 37 7412017 6 110 33.1 5.9 11 448 21 614 -1 990 42 4332018 5 447 28.2 5.1 11 288 22 816 -2 920 43 085

Net debt (a)


(a) Net debt data for the years before 1999 are sourced from ABS, Government Financial Estimates 2003–04 (catalogue number 5501).

(b) There is a structural break in the methodology used to calculate superannuation liabilities between June 2003 and June 2004. This accounting change, which involved the adoption of the Commonwealth Government bond rate for valuation purposes in line with AASB 119, Employee Benefits, resulted in a significant increase in superannuation liabilities.

(c) There is a structural break in 2007 reflecting the amalgamation of SAFA and SAICORP on 1 July 2006. The transfer of SAICORP’s assets and liabilities from the general government sector to the public financial corporations sector resulted in an increase in general government net debt of $99 million at 1 July 2006 and an increase in net financial liabilities of $90 million at 1 July 2006.

(d) There is a structural break in 2008 reflecting the transfer of rail assets from TransAdelaide to the general government sector. This resulted in an increase in net debt and net financial liabilities of $66 million in 2007–08, and a reduction in net financial worth of $591 million, with no impact on net worth.

(e) There is a structural break in 2008 reflecting the transfer of assets from the Adelaide Festival Centre Trust to the general government sector. This resulted in an increase in net debt and net financial liabilities of $28 million in 2007–08, and a reduction in net financial worth of $76 million, with no impact on net worth.



(f) There is a structural break in 2008 reflecting the first time recognition on the general government balance sheet of South Australia’s share of the net assets of the Murray-Darling Basin Commission. This had no impact on net debt, however resulted in a reduction in net financial liabilities of $615 million in 2007–08, and an increase in net financial worth and net worth of $615 million.

(g) There is a structural break in 2012 reflecting the transfer of the Rail Commissioner to the general government sector. This resulted in a reduction in net debt of $6 million, an increase in net financial liabilities of $37 million, and a reduction in net financial worth of $144 million in 2011–12, with no impact on net worth.

(h) There is a structural break in 2014 reflecting the transfer of the Lotteries Commission of South Australia (SA Lotteries) to the general government sector. This resulted in a reduction in net debt of $46 million, a reduction in net financial liabilities of $1 million in 2013–14, with no impact on net worth.

(i) There is a structural break in 2015 reflecting the government’s decision to reduce its equity in SA Water. This resulted in a once-off $2.7 billion return of capital to the Consolidated Account in 2014–15. The restructure resulted in a reduction in distributions paid to government partially offset by increased guarantee fees payable and lower borrowing costs.

(j) There is a structural break in 2016 reflecting the transfer of the South Australia Motor Sport Board to the general government sector. This resulted in an increase in net financial liabilities of $3 million, and a reduction in net financial worth of $12 million in 2015–16, with no impact on net worth.



Table C.3: General government receipts, payments and surplus(a) ($million)

Receipts Payments ABS Cash Surplus1979–80 1 891 1 671 2201980–81 2 065 1 917 1481981–82 2 210 2 122 871982–83 2 664 2 507 1561983–84 2 988 2 734 2551984–85 3 380 3 057 3241985–86 3 634 3 161 4741986–87 3 956 3 416 5401987–88 4 307 3 858 4491988–89 4 630 3 977 6531989–90 4 973 4 370 6031990–91 5 260 4 796 4631991–92 5 387 5 396 - 101992–93 5 967 5 456 5121993–94 6 087 6 024 631994–95 6 155 6 220 - 661995–96 6 405 6 164 2411996–97 6 379 6 282 971997–98 6 988 6 724 2641998–99 7 165 7 041 1231999–2000 7 676 7 915 - 2392000–01 8 278 8 387 - 1082001–02 8 698 8 748 - 502002–03 9 522 8 864 6582003–04 10 023 9 502 5222004–05 11 252 11 059 1932005–06 11 480 11 293 1872006–07 12 090 12 116 - 262007–08 12 932 12 552 3792008–09 13 579 14 299 - 7212009–10 15 837 16 991 -1 1542010–11 15 331 16 851 -1 5202011–12 16 556 17 594 -1 0382012–13 16 489 17 655 -1 1662013–14 15 434 17 232 -1 7972014–15 16 768 16 652 1162015–16 17 144 17 357 - 2132016–17 19 338 21 566 -2 2282017–18 21 384 20 682 702


(a) There is a break in the series between 1998–99 and 1999–2000. Data for the years before 1999–2000 are sourced from the ABS and are consistent with ABS Government Finance Statistics (GFS) reporting requirements on a cash basis. Capital receipts and payments, including payments associated with the provision of financial support for state owned financial institutions (which were treated by the ABS then as an ‘investment in financial assets for policy purposes’) are not included in the series before 1999–2000. After 1998–99, data is derived from an accrual ABS GFS reporting framework, with receipts proxied by receipts from operating activities and sales of non-financial assets, and payments proxied by payments for operating activities, purchases of non-financial assets and net acquisition of assets under finance leases and similar arrangements. Due to the associated methodological and data-source changes, time series data that encompass measures derived under both cash and accrual accounting should be used with caution.



Tabl

e C

.4: G

ener

al g

over

nmen

t sec

tor o

pera

ting

stat

emen

t ($m

illio

n)

2008

–09

2009

–10

2010

–11

2011

–12

2012

–13

2013

–14

2014

–15

2015

–16

2016

–17

2017

–18

Rev

enue

Taxa

tion

reve

nue

3 53

73

649

3 83

13

854

4 10

44

085

4 37

64

409

4 43

14

558

Gra

nts

7 24

98

881

8 18

58

668

7 66

97

804

8 35

08

997

9 95

810

677

Sale

s of

goo

ds a

nd s

ervi

ces

1 69

71

936

1 87

92

015

2 11

52

265

2 32

92

455

2 56

82

637

Inte

rest

inco

me(a

) 1

50 1

38 1

68 1

72 1

34 4

0 2

8 2

4 2

5 2

3D

ivid

end

and

inco

me

tax

equi

vale

nt in

com

e 3

82 4

33 4

03 3

85 4

46 3

98 7

91 7

92 6

45 6

77O

ther

517

497

550

811

865

752

674

686

852

771

Tota

l rev

enue

13 5

3115

534

15 0

1715

905

15 3

3315

343

16 5

4917

362

18 4

8019

344

less

Exp

ense

sEm

ploy

ee e

xpen

ses

5 74

96

221

6 40

06

770

7 10

57

353

7 49

37

721

8 01

08

420

Supe

rann

uatio

n ex

pens

esSu

pera

nnua

tion

inte

rest

cos

t 3

83 4

55 4

27 4

07 3

14 4

68 4

38 4

02 3

45 3

48O

ther

sup

eran

nuat

ion

expe

nses

5

80 6

00 6

21 6

66 6

75 7

36 7

38 7

44 7

67 8

05D

epre

ciat

ion

and

amor

tisat

ion

566

633

670

718

762

812

853

890

928

1 01

6In

tere

st e

xpen

ses(a

) 1

80 2

04 3

08 4

27 3

86 3

00 2

54 2

10 1

92 4

43O

ther

pro

perty

exp

ense

s—

——

——

——

——

—O

ther

ope

ratin

g ex

pens

es3

624

3 69

53

824

3 99

34

313

4 16

94

173

4 39

84

771

5 32

6G

rant

s2

682

3 54

02

819

3 18

32

726

2 57

72

790

2 69

83

025

3 29

9To

tal e

xpen

ses

13 7

6415

347

15 0

6916

164

16 2

8216

415

16 7

3817

062

18 0

3719

657

equa

ls N

et o

pera

ting

bala

nce

- 233

187

- 53

- 258

- 948

-1 0

71- 1

89 3

00 4

43- 3

13pl

us O

ther

eco

nom

ic fl

ows

708

11 8

302

905

-3 5

563

113

1 36

2 6

28-2

621

4 25

0 8

67eq

uals

Com

preh

ensi

ve re

sult

— to

tal c

hang

e in

net

wor

th 4

7512

017

2 85

2-3

814

2 16

4 2

91 4

39-2

321

4 69

3 5

54N

et o

pera

ting

bala

nce

- 233

187

- 53

- 258

- 948

-1 0

71- 1

89 3

00 4

43- 3

13le

ss N

et a

cqui

sitio

n of

non

-fina

ncia

l ass

ets

Purc

hase

s of

non

-fina

ncia

l ass

ets

1 30

52

144

2 12

21

876

2 00

81

590

937

1 16

24

460

1 99

9le

ss S

ales

of n

on-fi

nanc

ial a

sset

s 1

08 2

9 8

2 3

221

197

117

166

66

722

320

less

Dep

reci

atio

n 5

66 6

33 6

70 7

18 7

62 8

12 8

53 8

90 9

281

016

plus

Cha

nge

in in

vent

orie

s 7

3—

3 7

1 4

- 3 3

1pl

us O

ther

mov

emen

ts in

non

-fina

ncia

l ass

ets

—- 2

06—

——

——

——

—eq

uals

Tot

al n

et a

cqui

sitio

n of

non

-fina

ncia

l ass

ets

639

1 27

91

370

839

55

661

- 78

204

2 81

4 6

65eq

uals

Net

lend

ing

/ bor

row

ing

- 872

-1 0

92-1

422

-1 0

98-1

003

-1 7

33- 1

11 9

6-2

371

- 977

Not

e: T

otal

s m

ay n

ot a

dd d

ue to

roun

ding

.

(a)

Ther

e is

a s

truct

ural

bre

ak in

201

3–14

in th

e pr

esen

tatio

n of

inte

rest

inco

me

and

inte

rest

exp

ense

. Int

eres

t inc

ome

earn

ed o

n ca

sh a

nd d

epos

its is

offs

et w

ith in

tere

st e

xpen

se o

n th

e bo

rrow

ings

th

e Tr

easu

rer h

as w

ith S

AFA.

Thi

s re

sults

in a

redu

ctio

n to

inte

rest

inco

me

and

inte

rest

exp

ense

acc

ordi

ngly

.



Tabl

e C

.5: G

ener

al g

over

nmen

t sec

tor b

alan

ce s

heet

($m

illio

n)

As a

t 30

June

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

Asse

tsFi

nanc

ial a

sset

sC

ash

and

depo

sits

(a)

3 08

43

277

3 67

5 9

161

113

1 10

41

110

1 08

81

268

1 50

6Ad

vanc

es p

aid

752

676

642

550

176

66

57

57

63

69

Inve

stm

ents

, loa

ns a

nd p

lace

men

ts 1

40 1

63 1

89 2

00 2

26 2

47 2

71 2

92 3

67 4

08R

ecei

vabl

es 6

10 7

13 5

75 5

39 7

30 6

71 6

10 8

96 7

39 6

47Eq

uity

Inve

stm

ents

in o

ther

pub

lic s

ecto

r ent

ities

17 1

1319

734

21 6

1221

745

20 8

2121

816

19 6

6919

322

19 6

2419

896

Inve

stm

ents

— o

ther

707

752

743

836

831

836

865

890

32

28

Oth

er fi

nanc

ial a

sset

s 4

3 4

7 8

0 1

25 5

6 3

9 7

9 8

6 1

05 9

1To

tal f

inan

cial

ass

ets

22 4

4925

363

27 5

1624

912

23 9

5424

779

22 6

6122

632

22 1

9822

646

Non

-fina

ncia

l ass

ets

Land

and

fixe

d as

sets

18 5

9029

677

33 6

5735

779

37 6

1638

593

38 7

4739

781

44 4

0245

972

Oth

er n

on-fi

nanc

ial a

sset

s 5

3 2

6 5

5 1

9 2

1 3

2To

tal n

on-fi

nanc

ial a

sset

s18

595

29 6

8033

658

35 7

8537

621

38 5

9938

748

39 7

9044

423

46 0

05To

tal a

sset

s41

045

55 0

4361

175

60 6

9861

575

63 3

7861

409

62 4

2266

621

68 6

50Li

abili

ties

Dep

osits

hel

d 3

35 3

87 3

54 3

97 3

92 3

56 3

77 4

78 2

75 3

99Ad

vanc

es re

ceiv

ed 6

28 6

10 5

92 5

90 2

32 2

14 2

52 2

34 2

34 2

31Bo

rrow

ing(a

)3

488

4 52

26

491

4 84

36

118

7 91

84

737

5 11

97

300

6 80

1Su

pera

nnua

tion

8 93

99

478

9 09

613

523

11 0

8510

877

11 3

5814

029

11 4

4811

288

Oth

er e

mpl

oyee

ben

efits

1 86

71

922

2 02

22

408

2 45

72

452

2 62

22

829

2 77

22

907

Paya

bles

760

1 00

4 8

10 8

981

019

936

1 08

91

089

1 24

51

103

Oth

er li

abilit

ies

881

888

853

840

908

970

852

904

915

2 83

6To

tal l

iabi

litie

s16

898

18 8

1120

217

23 4

9922

212

23 7

2321

288

24 6

8124

188

25 5

65Ne

t wor

th24

146

36 2

3140

958

37 1

9939

363

39 6

5440

121

37 7

4142

433

43 0

85N

et fi

nanc

ial w

orth

(b)(e

)5

551

6 55

17

299

1 41

31

742

1 05

61

374

-2 0

49-1

990

-2 9

20N

et fi

nanc

ial l

iabi

litie

s(b)(c

)(e)

11 5

6213

182

14 3

1320

332

19 0

7920

761

18 2

9621

372

21 6

1422

816

Net

deb

t(b)(c

)(d)

475

1 40

22

930

4 16

55

227

7 07

13

929

4 39

36

110

5 44

7

Not

e: T

otal

s m

ay n

ot a

dd d

ue to

roun

ding

.

(a)

Ther

e is

a s

truct

ural

bre

ak in

201

2 re

flect

ing

that

cas

h an

d de

posi

ts h

eld

by th

e Tr

easu

rer a

re o

ffset

with

bor

row

ings

the

Trea

sure

r has

with

SAF

A. T

his

resu

lted

in a

redu

ctio

n in

cas

h an

d de

posi

ts,

and

borro

win

gs o

f $3.

134

billio

n in

201

1–12

, with

no

impa

ct o

n bo

th n

et w

orth

and

net

deb

t.

(b)

Ther

e is

a s

truct

ural

bre

ak in

201

2 re

flect

ing

the

trans

fer o

f the

Rai

l Com

mis

sion

er to

the

gene

ral g

over

nmen

t sec

tor.

This

resu

lted

in a

redu

ctio

n in

net

deb

t of $

6 m

illion

, an

incr

ease

in n

et

finan

cial

liab

ilitie

s of

$37

milli

on, a

nd a

redu

ctio

n in

net

fina

ncia

l wor

th o

f $14

4 m

illion

in 2

011–

12, w

ith n

o im

pact

on

net w

orth

.



(c)

Ther

e is

a s

truct

ural

bre

ak in

201

4 re

flect

ing

the

trans

fer o

f the

Lot

terie

s C

omm

issi

on o

f Sou

th A

ustra

lia (S

A Lo

tterie

s) to

the

gene

ral g

over

nmen

t sec

tor.

This

resu

lted

in a

redu

ctio

n in

net

deb

t of

$46

milli

on, a

redu

ctio

n in

net

fina

ncia

l lia

bilit

ies

of $

1 m

illion

in 2

013–

14, w

ith n

o im

pact

on

net w

orth

.

(d)

Ther

e is

a s

truct

ural

bre

ak in

201

5 re

flect

ing

the

gove

rnm

ent’s

dec

isio

n to

redu

ce it

s eq

uity

in S

A W

ater

. Thi

s re

sulte

d in

a o

nce-

off $

2.7

billio

n re

turn

of c

apita

l to

the

Con

solid

ated

Acc

ount

in

2014

–15.

The

rest

ruct

ure

resu

lted

in a

redu

ctio

n in

dis

tribu

tions

pai

d to

gov

ernm

ent p

artia

lly o

ffset

by

incr

ease

d gu

aran

tee

fees

pay

able

and

low

er b

orro

win

g co

sts.

(e)

Ther

e is

a s

truct

ural

bre

ak in

201

6 re

flect

ing

the

trans

fer o

f the

Sou

th A

ustra

lian

Mot

or S

port

Boar

d to

the

gene

ral g

over

nmen

t sec

tor.

This

resu

lted

in a

n in

crea

se in

net

fina

ncia

l lia

bilit

ies

of

$3 m

illion

, and

a re

duct

ion

in n

et fi

nanc

ial w

orth

of $

12 m

illion

in 2

015–

16, w

ith n

o im

pact

on

net w

orth

.



Non-financial public sector

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

Net operating

balance

Net acquisition

of non-financial

assetsNet

lending

$m% real

growth%

GSP $m% real

growth%

GSP $m $m $m1998–99 9 468 21.5 9 597 21.8 - 129 - 115 - 141999–2000 9 206 -5.2 19.8 9 552 -2.9 20.5 - 346 -3 508 3 1612000–01 9 051 -4.5 18.2 9 279 -5.7 18.6 - 228 -1 111 8832001–02 9 367 0.3 17.5 9 487 -0.9 17.7 - 120 - 124 52002–03 10 172 4.4 17.9 9 696 -1.7 17.1 476 72 4052003–04 10 707 2.2 18.0 10 294 3.1 17.3 413 33 3792004–05 11 343 3.5 18.3 11 029 4.6 17.8 314 125 1892005–06 11 807 0.9 17.9 11 634 2.3 17.7 172 53 1192006–07 12 321 1.7 17.4 12 175 2.0 17.2 147 173 - 262007–08 13 634 7.1 17.8 13 065 3.9 17.0 569 303 2662008–09 14 360 2.1 17.8 14 567 8.1 18.1 - 207 1 249 -1 4562009–10(a) 16 315 11.2 19.2 15 679 5.3 18.5 636 2 361 -1 7252010–11(a) 15 960 -5.2 17.6 15 939 -1.5 17.6 21 1 920 -1 8982011–12 16 866 3.0 18.1 16 908 3.3 18.2 - 41 1 383 -1 4242012–13 16 494 -4.1 17.3 17 152 -0.6 18.0 - 657 64 - 7212013–14(b) 16 399 -3.1 16.8 17 627 0.2 18.0 -1 229 715 -1 9442014–15 17 651 6.0 17.8 17 965 0.4 18.1 - 314 - 198 - 1162015–16 18 461 3.7 18.5 18 310 1.0 18.4 151 205 - 542016–17 19 447 3.8 18.7 19 228 3.4 18.5 219 3 359 -3 1402017–18 20 384 2.5 19.0 20 768 5.6 19.3 - 384 728 -1 112

Revenue Expenses


(a) In 2009–10 and 2010–11 revenue, expenses and net acquisition of non-financial assets are impacted by the Commonwealth Government’s Nation Building ― Economic Stimulus Plan.

(b) There is a structural break in 2013–14 in the presentation of interest income and interest expense. Interest income earned on cash and deposits is offset with interest expense on the borrowings the Treasurer has with SAFA. This results in a reduction to interest income and interest expense accordingly.



Table C.7: Non-financial public sector key balance sheet aggregates ($million)

(b) Unfunded Net financial Net financial Net% of % of superannuation liabilities worth worth

As at 30 June $m revenue GSP $m $m $m $m1988 4 3971989 4 1971990 4 4571991 5 4181992 8 1421993 11 6101994 10 5501995 8 8441996 8 4321997 8 1701998 7 9271999 7 657 80.9 17.4 3 909 13 099 -12 256 10 6242000 4 355 47.3 9.3 3 543 9 914 -8 986 12 4452001 3 223 35.6 6.5 3 249 8 151 -7 109 14 8162002 3 317 35.4 6.2 3 998 8 973 -7 902 14 7212003 2 696 26.5 4.8 4 445 9 096 -8 811 15 2882004 2 285 21.3 3.8 5 668 10 031 -9 550 15 7602005 2 126 18.7 3.4 7 227 11 511 -11 004 16 3592006 1 786 15.1 2.7 6 146 10 451 -9 889 19 7032007(c) 1 989 16.1 2.8 5 075 9 518 -8 795 22 1282008(d)(e) 1 611 11.8 2.1 6 468 10 208 -10 487 23 7412009 2 872 20.0 3.6 8 939 14 302 -14 921 24 1462010 4 487 27.5 5.3 9 478 16 626 -16 997 36 2312011 6 541 41.0 7.2 9 096 18 273 -18 402 40 9582012 7 996 47.4 8.6 13 523 24 500 -25 123 37 1992013 8 949 54.3 9.4 11 085 23 064 -23 223 39 3632014 10 964 66.9 11.2 10 877 24 811 -24 080 39 6542015 10 676 60.5 10.8 11 358 25 167 -23 750 40 1212016 10 912 59.1 11.0 14 029 28 281 -27 355 37 7412017 13 529 69.6 13.0 11 448 29 200 -28 042 42 4332018 12 950 63.5 12.1 11 288 30 564 -29 523 43 085

Net debt (a)


(a) Net debt data for the years before 1999 are sourced from the ABS, Government Financial Estimates 2003–04 (Catalogue number 5501).

(b) There is a structural break in the methodology used to calculate superannuation liabilities between June 2003 and June 2004. This accounting change, which involved the adoption of the Commonwealth Government bond rate for valuation purposes in line with AASB 119, Employee Benefits, resulted in a significant increase in superannuation liabilities.

(c) There is a structural break in 2007 reflecting the amalgamation of SAFA and SAICORP on 1 July 2006. The transfer of SAICORP’s assets and liabilities from the general government sector to the public financial corporations sector resulted in an increase in non-financial public sector net debt of $99 million at 1 July 2006 and an increase in net financial liabilities of $90 million at 1 July 2006.

(d) There is a structural break in 2008 reflecting the amalgamation of South Australian Community Housing Authority (public financial corporation) with South Australian Housing Trust (public non-financial corporation). This resulted in an increase in net debt and net financial liabilities and a decrease in net financial worth of $98 million in 2007−08, with no impact on net worth.

(e) There is a structural break in 2008 reflecting the first time recognition on the general government balance sheet of South Australia’s share of the net assets of the Murray-Darling Basin Commission. This had no impact on net debt, however resulted in a reduction in net financial liabilities of $615 million in 2007–08, and an increase in net financial worth and net worth of $615 million.



Table C.8: Non-financial public sector receipts, payments and surplus(a) ($million)

Receipts Payments ABS Cash Surplus1979–80 2 681 2 388 2921980–81 2 877 2 649 2281981–82 3 145 2 963 1821982–83 3 651 3 356 2951983–84 4 383 4 014 3691984–85 4 887 4 356 5311985–86 5 172 4 415 7571986–87 5 542 4 790 7521987–88 6 078 5 299 7801988–89 6 946 5 784 1 1621989–90 7 517 6 465 1 0521990–91 7 830 6 839 9911991–92 8 352 7 969 3831992–93 8 939 7 946 9931993–94 8 761 8 119 6421994–95 8 570 8 142 4281995–96 8 985 8 654 3311996–97 8 908 8 532 3751997–98 9 426 8 895 5321998–99 9 301 8 692 6091999–2000 13 014 9 501 3 5132000–01 10 572 9 414 1 1582001–02 9 726 9 722 42002–03 10 439 9 805 6342003–04 10 891 10 403 4882004–05 12 051 11 786 2652005–06 12 239 11 868 3702006–07 12 684 12 809 - 1252007–08 13 943 13 477 4662008–09 14 563 15 806 -1 2432009–10 16 847 18 695 -1 8492010–11 16 548 18 553 -2 0042011–12 17 431 18 863 -1 4322012–13 17 814 19 133 -1 3192013–14 16 640 18 647 -2 0072014–15 17 841 17 896 - 552015–16 18 485 18 623 - 1382016–17 19 593 22 779 -3 1862017–18 22 532 21 904 629


(a) There is a break in the series between 1998–99 and 1999–2000. Data for the years before 1999–2000 is sourced from the ABS and is consistent with ABS GFS reporting requirements on a cash basis. Capital receipts and payments, including payments associated with the provision of financial support for state owned financial institutions, which were treated by the ABS then as an investment in financial assets for policy purposes, are not included in this series before 1999–2000. After 1998–99, data is derived from an accrual ABS GFS reporting framework, with receipts proxied by receipts from operating activities and sales of non-financial assets, and payments proxied by payments for operating activities, purchases of non-financial assets and net acquisition of assets under finance leases and similar arrangements. Due to the associated methodological and data-source changes, time series data that encompass measures derived under both cash and accrual accounting should be used with caution.



Tabl

e C

.9: N

on-fi

nanc

ial p

ublic

sec

tor o

pera

ting

stat

emen

t ($m

illio

n)

2008

–09

2009

–10

2010

–11

2011

–12

2012

–13

2013

–14

2014

–15

2015

–16

2016

–17

2017

–18

Rev

enue

Taxa

tion

reve

nue

3 24

43

331

3 46

73

476

3 72

63

805

4 07

24

083

4 07

24

198

Gra

nts

7 26

28

897

8 22

38

705

7 69

77

806

8 35

08

996

9 95

910

678

Sale

s of

goo

ds a

nd s

ervi

ces

3 08

23

311

3 36

63

589

3 94

93

844

3 96

84

138

4 06

24

208

Inte

rest

inco

me(a

) 1

25 1

23 1

63 1

63 1

31 4

6 3

4 3

3 3

2 2

4D

ivid

end

and

inco

me

tax

equi

vale

nt in

com

e 3

6 5

8 9

1 5

1 5

6 8

1 5

04 4

66 4

42 4

29O

ther

611

594

651

883

935

816

724

746

881

847

Tota

l rev

enue

14 3

6016

315

15 9

6016

866

16 4

9416

399

17 6

5118

461

19 4

4720

384

less

Exp

ense

sEm

ploy

ee e

xpen

ses

5 94

46

436

6 62

56

959

7 29

97

544

7 68

37

913

8 20

88

626

Supe

rann

uatio

n ex

pens

esSu

pera

nnua

tion

inte

rest

cos

t 3

83 4

55 4

27 4

07 3

14 4

68 4

38 4

02 3

45 3

48O

ther

sup

eran

nuat

ion

expe

nses

6

05 6

28 6

49 6

92 7

00 7

62 7

64 7

71 7

94 8

32D

epre

ciat

ion

and

amor

tisat

ion

852

958

1 02

41

078

1 16

61

236

1 27

51

321

1 36

71

490

Inte

rest

exp

ense

s(a)

290

344

493

639

599

509

519

483

472

720

Oth

er p

rope

rty e

xpen

ses

——

——

——

——

——

Oth

er o

pera

ting

expe

nses

4 40

44

306

4 47

24

716

4 84

94

892

4 88

65

045

5 35

85

917

Gra

nts

2 08

92

553

2 24

92

417

2 22

42

218

2 40

12

376

2 68

52

835

Tota

l exp

ense

s14

567

15 6

7915

939

16 9

0817

152

17 6

2717

965

18 3

1019

228

20 7

68eq

uals

Net

ope

ratin

g ba

lanc

e- 2

07 6

36 2

1- 4

1- 6

57-1

229

- 314

151

219

- 384

plus

Oth

er e

cono

mic

flow

s 6

8211

382

2 83

1-3

772

2 82

21

520

753

-2 4

724

474

938

equa

ls C

ompr

ehen

sive

resu

lt - t

otal

cha

nge

in n

et w

orth

475

12 0

172

852

-3 8

142

164

291

439

-2 3

214

693

554

Net

ope

ratin

g ba

lanc

e- 2

07 6

36 2

1- 4

1- 6

57-1

229

- 314

151

219

- 384

less

Net

acq

uisi

tion

of n

on-fi

nanc

ial a

sset

sPu

rcha

ses

of n

on-fi

nanc

ial a

sset

s2

328

3 76

23

217

2 75

02

683

2 12

61

429

1 70

44

947

2 68

2le

ss S

ales

of n

on-fi

nanc

ial a

sset

s 3

04 3

36 2

81 3

311

428

333

297

195

228

431

less

Dep

reci

atio

n 8

52 9

581

024

1 07

81

166

1 23

61

275

1 32

11

367

1 49

0pl

us C

hang

e in

inve

ntor

ies

76

99

7 4

1- 2

6 1

58- 5

5 1

7 7

- 33

plus

Oth

er m

ovem

ents

in n

on-fi

nanc

ial a

sset

s—

- 206

——

——

——

——

equa

ls T

otal

net

acq

uisi

tion

of n

on-fi

nanc

ial a

sset

s1

249

2 36

11

920

1 38

3 6

4 7

15- 1

98 2

053

359

728

equa

ls N

et le

ndin

g / b

orro

win

g-1

456

-1 7

25-1

898

-1 4

24- 7

21-1

944

- 116

- 54

-3 1

40-1

112

N

ote:

Tot

als

may

not

add

due

to ro

undi

ng.

(a)

Ther

e is

a s

truct

ural

bre

ak in

201

3–14

in th

e pr

esen

tatio

n of

inte

rest

inco

me

and

inte

rest

exp

ense

. Int

eres

t inc

ome

earn

ed o

n ca

sh a

nd d

epos

its is

offs

et w

ith in

tere

st e

xpen

se o

n th

e bo

rrow

ings

th

e Tr

easu

rer h

as w

ith S

AFA.

Thi

s re

sulte

d in

a re

duct

ion

to in

tere

st in

com

e an

d in

tere

st e

xpen

se a

ccor

ding

ly.



Tabl

e C

.10:

Non

-fina

ncia

l pub

lic s

ecto

r bal

ance

she

et ($

mill

ion)

As a

t 30

June

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

Asse

tsFi

nanc

ial a

sset

sC

ash

and

depo

sits

(a)

3 36

03

573

3 96

11

207

1 44

01

354

1 32

61

506

1 44

31

603

Adva

nces

pai

d 7

1 7

2 9

9 7

7 6

2 5

5 2

4 2

4 3

0 3

6In

vest

men

ts, l

oans

and

pla

cem

ents

176

232

228

242

270

293

317

340

421

429

Rec

eiva

bles

520

766

635

662

877

803

837

951

975

801

Equi

tyIn

vest

men

ts in

oth

er p

ublic

sec

tor e

ntiti

es- 6

19- 3

71- 1

28- 6

23- 1

59 7

311

416

926

1 15

81

040

Inve

stm

ents

— o

ther

727

766

761

852

848

853

883

905

45

43

Oth

er fi

nanc

ial a

sset

s 8

2 1

04 8

3 1

26 5

6 3

9 8

3 9

2 1

18 9

3To

tal f

inan

cial

ass

ets

4 31

65

143

5 63

82

543

3 39

44

129

4 88

74

743

4 19

14

045

Non

-fina

ncia

l ass

ets

Land

and

fixe

d as

sets

39 0

5953

224

59 3

0262

311

62 5

7463

726

63 8

6865

084

70 4

5472

564

Oth

er n

on-fi

nanc

ial a

sset

s 8

4 5

7 1

2 1

2 8

4 1

3 2

2 4

4To

tal n

on-fi

nanc

ial a

sset

s39

067

53 2

2859

359

62 3

2262

586

63 7

3463

872

65 0

9670

476

72 6

08To

tal a

sset

s43

384

58 3

7164

997

64 8

6665

981

67 8

6368

759

69 8

3974

667

76 6

54Li

abili

ties

Dep

osits

hel

d 1

74 1

71 1

71 1

77 1

72 1

83 2

04 2

26 1

43 1

91Ad

vanc

es re

ceiv

ed 6

28 6

10 5

92 5

90 2

32 2

14 2

52 2

34 2

34 2

31Bo

rrow

ing(a

)5

677

7 58

310

065

8 75

510

318

12 2

7011

888

12 3

2215

047

14 5

96Su

pera

nnua

tion

8 93

99

478

9 09

613

523

11 0

8510

877

11 3

5814

029

11 4

4811

288

Oth

er e

mpl

oyee

ben

efits

1 94

42

003

2 10

62

486

2 53

12

525

2 69

52

902

2 84

32

980

Paya

bles

907

1 31

91

077

1 20

41

215

1 10

21

304

1 32

01

481

1 38

3O

ther

liab

ilitie

s 9

69 9

75 9

32 9

321

064

1 03

8 9

371

066

1 03

82

899

Tota

l lia

bilit

ies

19 2

3722

140

24 0

4027

667

26 6

1728

209

28 6

3732

099

32 2

3433

569

Net

wor

th24

146

36 2

3140

958

37 1

9939

363

39 6

5440

121

37 7

4142

433

43 0

85N

et fi

nanc

ial w

orth

-14

921

-16

997

-18

402

-25

123

-23

223

-24

080

-23

750

-27

355

-28

042

-29

523

Net

fina

ncia

l lia

bilit

ies

14 3

0216

626

18 2

7324

500

23 0

6424

811

25 1

6728

281

29 2

0030

564

Net

deb

t2

872

4 48

76

541

7 99

68

949

10 9

6410

676

10 9

1213

529

12 9

50

Not

e: T

otal

s m

ay n

ot a

dd d

ue to

roun

ding

.

(a)

Ther

e is

a s

truct

ural

bre

ak in

201

2 re

flect

ing

that

cas

h an

d de

posi

ts h

eld

by th

e Tr

easu

rer a

re o

ffset

with

bor

row

ings

the

Trea

sure

r has

with

SAF

A. T

his

resu

lted

in a

redu

ctio

n in

cas

h an

d de

posi

ts,

and

borro

win

gs o

f $3.

134

billio

n in

201

1–12

, with

no

impa

ct o

n bo

th n

et w

orth

and

net

deb

t.



Acknowledgements

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

© Government of South Australia 2018

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