2012-13 Government Mid-year Financial Projections Statement

2012-13 Government Mid-year Financial Projections Statementhalting growth in leave liabilities, by capping these at 30 June 2012 levels.Public sector leave liabilities accumulate on agencies’ balance sheets and putincreasing pressure on salary expenditure costs each year. Agencies haveimplemented strategies to ensure accruing annual and long service leave liabilitiesare capped at 30 June 2012 levels from 30 June 2013 onwards, and have determinedthe operational arrangements in accordance with their individual circumstances.This measure is estimated to save around $100 million in 2012-13 and has beenincorporated at a global level in this mid-year review. The capping of leaveliabilities will be included in individual agencies’ budgets as part of the2013-14 Budget process; anda 1.5% reduction to agencies’ 2012-13 budgeted expenditure on procuringnon-essential goods and services (such as consumables, consultants andcommunication). This measure has been targeted at the 31 largest agency spenders,resulting in an estimated saving of around $63 million.The Government has also included a range of additional measures in this mid-yearreview, including:implementation of revised dividend arrangements for a number of publiccorporations, including an increase in the interim dividend payable by theWater Corporation to 98% (up from 93%) for 2012-13 and each subsequent year,and payment by the Western Australian Land Authority of an additional $62 millionas a one-off dividend payment to the general government sector in 2012-13;the inclusion of a $50 million provision in 2012-13 for refunds of overpaid agencyGST liabilities which will be sought from the Australian Taxation Office this year;changes in the timing of grant expenditure for the Low Emissions EnergyDevelopment Fund, Browse LNG regional benefits package, and the NaturalResource Management program, as well as the cessation of the Lignor FinancialAssistance Agreement;deferral of $57 million of Royalties for Regions (RfR) recurrent expenditure from2012-13 to 2013-14; anda $53 million reduction in RfR recurrent expenditure in 2013-14, to be achieved byreducing the recurrent allocation to the Regional Community Services – RegionalStrategic Projects Fund.14