Operating statement
| For the year ended 30 June 2023 | 2022-23 $’000 |
2021-22 $’000 |
|---|---|---|
| Income from transactions | ||
| Revenue from government* | 181,391 | 158,277 |
| Sales of goods and services | 579 | 571 |
| Payments to consolidated fund | (555) | (366) |
| Total income from transactions | 181,415 | 158,482 |
| Expenses from transactions | ||
| Employee benefits | 86,603 | 83,066 |
| Supplies and services | 59,213 | 62,461 |
| Depreciation and amortisation | 5,566 | 3,714 |
| Grants and other transfers | 19,827 | 5,513 |
| Interest expenses | 42 | 42 |
| Other expenses | - | 26 |
| Total expenses from transactions | 171,251 | 154,822 |
| Net result from transactions | 10,164 | 3,660 |
| Other economic flows in net result | ||
| Net gains/(losses) on financial instruments | - | - |
| Net gains/(losses) on non-financial assets | 40 | 34 |
| Other gains/(losses) on other economic flows | (231) | 1,627 |
| Total other economic flows in net result | (191) | 1,661 |
| Net surplus/(deficit) for reporting period | 9,973 | 5,321 |
| * Revenue from government represents the output budget allocated to the SRO. | ||
Notes to the operating statement
- The increase of $3.537 million in employee benefits was mainly due to an overall increase in FTE numbers associated with compliance programs, in conjunction with enterprise bargaining agreement increases and full year costs associated with the mental health and wellbeing surcharge.
- The decrease of $3.248 million in supplies and services was mainly associated with a reduction in labour hire contractor costs in respect to Business Technology Services software developments and the implementation of the HomeBuilder scheme.
- The increase of $1.852 million in depreciation and amortisation was mainly due to amortisation associated with software development.
- Grants and other transfers consists of payments made to municipal councils in relation to the administration of the fire services property levy, which were based on the Treasurer’s determination under section 70 of the Fire Services Property Levy Act 2012, and payments made to the Department of Transport for motor vehicle duty collection.
- Expenses from transactions exclude $0.579 million in relation to the administration of the growth area infrastructure contribution, which is operated through a Treasury trust.
Balance sheet
| As at 30 June 2023 | 2022-23 $’000 |
2021-22 $’000 |
|---|---|---|
| Financial assets | ||
| Cash assets | - | - |
| Receivables | 68,019 | 68,871 |
| Total financial assets | 68,019 | 68,871 |
| Non-financial assets | ||
| Assets held for sale | 35 | 29 |
| Plant, property and equipment | 101 | 242 |
| Intangible assets | 36,766 | 23,803 |
| Other | 7,364 | 6,039 |
| Total non-financial assets | 44,266 | 30,113 |
| Total assets | 112,285 | 98,984 |
| Liabilities | ||
| Payables | 29,713 | 26,271 |
| Interest-bearing liabilities | 2,028 | 3,105 |
| Provisions | 26,465 | 25,867 |
| Total liabilities | 58,206 | 55,243 |
| Net assets | 54,079 | 43,741 |
Notes to the balance sheet
Receivables
| 2022-23 $’000 |
2021-22 $’000 |
|
|---|---|---|
| Amounts owing from Victorian Government | 65,195 | 65,719 |
| GST input tax credit recoverable | 1,415 | 1,263 |
| Other receivables | 1,409 | 1,889 |
| Total receivables | 68,019 | 68,871 |
Written-down value of property, plant and equipment
| 2022-23 $’000 |
2021-22 $’000 |
|
|---|---|---|
| Computer equipment | 101 | 242 |
| Plant, furniture and equipment | - | - |
| Leasehold improvements/fitouts | - | - |
| Total written-down value of property, plant and equipment | 101 | 242 |
Written-down value of intangible assets
| 2022-23 $’000 |
2021-22 $’000 |
|
|---|---|---|
| Other intangible produced assets* | 19,260 | 9,246 |
| Work in progress* | 17,506 | 14,557 |
| Total written-down value of intangible assets | 36,766 | 23,803 |
| * Capitalised and uncapitalised expenditure on e-Sys Life Extension Project. | ||
Other non-financial assets
| 2022-23 $’000 |
2021-22 $’000 |
|
|---|---|---|
| Prepayments | 5,188 | 2,937 |
| Right of use plant and equipment | 1,862 | 2,820 |
| Motor vehicle leased | 314 | 282 |
| Total other non-financial assets | 7,364 | 6,039 |
Current payables
| 2022-23 $’000 |
2021-22 $’000 |
|
|---|---|---|
| Unpresented cheques | (523) | (275) |
| Trade creditors | 1,248 | 3,588 |
| Accruals | 24,246 | 20,158 |
| Other payables | 4,742 | 2,800 |
| Total payables | 29,713 | 26,271 |
Interest-bearing liabilities
| 2022-23 $’000 |
2021-22 $’000 |
|
|---|---|---|
| Current liabilities | ||
| Right of use lease liabilities | 566 | 913 |
| Motor vehicle leases | 165 | 199 |
| Total current liabilities | 731 | 1,112 |
| Non-current liabilities | ||
| Right of use lease liabilities | 1,115 | 1,882 |
| Motor vehicle leases | 182 | 111 |
| Total non-current liabilities | 1,297 | 1,993 |
| Total interest-bearing liabilities | 2,028 | 3,105 |
Provisions
| 2022-23 $’000 |
2021-22 $’000 |
|
|---|---|---|
| Current provisions | ||
| Annual leave | 7,214 | 7,500 |
| Long service leave | 13,445 | 12,998 |
| Other employee entitlements | 3,157 | 3,041 |
| Total current provisions | 23,816 | 23,539 |
| Non-current provisions | ||
| Long service leave | 2,649 | 2,328 |
| Total non-current provisions | 2,649 | 2,328 |
| Total provisions | 26,465 | 25,867 |
Administered items
| Administered revenues | 2022-23 $’000 |
2021-22 $’000 |
|---|---|---|
| Payroll tax | 8,331,721 | 7,556,354 |
| Mental health and wellbeing surcharge | 1,087,625 | 414,849 |
| Duties* | 10,625,603 | 12,100,619 |
| Land tax | 5,372,466 | 4,141,935 |
| Congestion levy | 107,756 | 109,312 |
| Growth areas infrastructure contribution | 259,581 | 361,364 |
| Metropolitan planning levy | 21,913 | 22,185 |
| Fire services property levy | 791,858 | 758,758 |
| Commercial passenger vehicle service levy | 61,119 | 44,981 |
| Wagering and betting tax | 253,213 | 257,748 |
| Keno tax | 11,966 | 1,517 |
| Licence fees | 20,900 | 25,842 |
| Total | 26,945,721 | 25,795,464 |
| Less: cattle compensation fund | (5,834) | (6,665) |
| Less: swine compensation fund | (192) | (206) |
| Less: sheep and goat compensation fund | (3,169) | (2,317) |
| Add: unclaimed money receipts | 129,421 | 89,440 |
| Add: user charges | 4,100 | 6,585 |
| Add: sundry income | 642 | 366 |
| Total administered revenues | 27,070,689 | 25,882,667 |
| * Includes cattle compensation fund, swine compensation fund and sheep and goat compensation fund. | ||
| Administered expenses | 2022-23 $’000 |
2021-22 $’000 |
|---|---|---|
| First Home Owner Grant | 120,645 | 210,020 |
| HomeBuilder Grant | 54,361 | 335,267 |
| First Home Bonus | 2 | 3 |
| Liquor subsidies | 5,850 | 5,034 |
| Other grants, rebates and other payments | 33,596 | 35,689 |
| Unclaimed money refunds | 8,659 | 10,413 |
| Bad and doubtful debts | 66,502 | 51,759 |
| Total administered expenses | 289,615 | 648,185 |
| Net administered revenues | 26,781,074 | 25,234,482 |
Notes to administered items
- Tax and duty revenue increased by $1,150 million to $26,945 million. This included:
- an increase of $775 million in payroll tax
- an increase of $672 million in mental health and wellbeing surcharge
- a decrease of $1,624 million in land transfer duty
- an increase of $1,230 million in land tax.
- Tax and duty revenues include reductions associated with business relief measures. Total relief provided in 2022–23 included:
- $0.624 million in land transfer duty
- $8.362 million in payroll tax.
- The fire services property levy increased by $33 million mainly due to the change of fixed charges and levy rates according to sections 11 and 12 of the Fire Services Property Levy Act 2012.
- Unclaimed money receipts represent monies transferred to the Registrar under the Unclaimed Money Act 2008 and the Gambling Regulation Act 2003. There was an increase of $39.9 million in the 2022–23 financial year.
- The First Home Owner Grant decreased by $89.3 million as a result of a reduction in applications compared to 2021–22.
- The HomeBuilder Grant was introduced to assist eligible owner-occupiers to build a new home, substantially renovate an existing home or buy off the plan. The grant applies to eligible contracts entered into between 4 June 2020 and 31 March 2021. Applications for the HomeBuilder Grant closed in April 2021. There was a decrease of $280.9 million in the 2022–23 financial year.
- Other grants, rebates and other payments decreased by $2 million mainly due to a decrease in ex gratia payments of $1.7 million.
- The $14.7 million increase in bad and doubtful debts includes a decrease of $4.4 million in bad debts and an increase of $19.1 million in the provision for doubtful debts.