Annual Report 2018–2019 and Financial Statements for Queensland Treasury
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Queensland Treasury 23 September 2019 The Honourable Jackie Trad MP Deputy Premier, Treasurer and Minister for Aboriginal and Torres Strait Islander Partnerships 1 William Street Brisbane Qld 4000 Dear Deputy Premier I am pleased to submit for presentation to the Parliament the Annual Report 2018–2019 and financial statements for Queensland Treasury. I certify that this annual report complies with: the prescribed requirements of the Financial Accountability Act 2009 and the Financial and Performance Management Standard 2019, and the detailed requirements set out in the annual report requirements for Queensland Government agencies. A checklist outlining the annual reporting requirements is provided at page 116 of this annual report. Yours sincerely Frankie Carroll Under Treasurer Translating and interpreting assistance About our annual report The Queensland Government is committed to providing The Queensland Treasury Annual Report 2018–19 is an integral part of accessible services to Queenslanders from all cultural and our corporate governance framework and one of the main tools we use linguistic backgrounds. If you have difficulty in understanding the annual to ensure we are accountable to the Queensland Parliament and the report, you can contact us on telephone (07) 3035 3503 and we will community about our activities. This report details our achievements, arrange an interpreter to effectively communicate the report to you. performance and financial position for the 2018–19 financial year. It aligns with the Queensland Government’s Our Future State: Advancing Queensland’s Priorities, the Queensland Treasury Strategic Plan Licence 2018–2022 and our Service Delivery Statement 2018–19. It also This annual report is licensed by the State of Queensland provides information on our future direction, people management (Queensland Treasury) under a Creative Commons Attribution and corporate governance processes. (CC BY) 4.0 International licence. In essence, you are free to copy, communicate and adapt Find our report online this annual report, as long as you attribute the work to the This report is available at www.treasury.qld.gov.au/publications- State of Queensland (Queensland Treasury). To view a copy resources/ of this licence, visit creativecommons.org/licenses/by/4.0/ For enquiries about this annual report, contact the Principal ISSN 1837-2856 Communication Officer, Strategic Communications on (07) 3035 3532 © The State of Queensland (Queensland Treasury) 2019 or via [email protected]. Follow us Contents Financial Inside front cover 038 Letter of compliance Financial summary 002 043 Under Treasurer’s report Financial statements 004 Our performance Appendices 108 007 Consultancies, language services, About us overseas travel 008 108 Managing our organisation External scrutiny 016 109 Our people Government bodies 109 Service reports Legislation 021 Economic and fiscal coordination 110 Regulatory improvement 025 Agency performance 110 Publications 027 Commercial services 114 Glossary 034 Revenue management 115 Contact us 116 Compliance checklist Contents 001 Under Treasurer’s report I am pleased to industry, which called on insurers During the past year, Treasury to treat affected individuals and also worked collaboratively with present Queensland businesses with compassion. The government agencies, other levels Treasury’s Annual Deputy Premier hosted a roundtable of government, and industry and in Townsville with the insurance community stakeholders to deliver Report for 2018–19; a industry, local businesses and on the government’s agenda for year in which Treasury community leaders that led to more increasing job opportunities and direct engagement between the improved services. Treasury was continued to shine insurance industry and small business instrumental in supporting the state’s as the pre-eminent owners over insurance concerns. It continuing transition to the National economic, fiscal and also achieved increased promotion of Disability Insurance Scheme with the North Queensland Flood Register, strategic policy and financial advice, commercial advisor which lists licensed contractors in partnership with relevant agencies. to the Queensland available to undertake repairs. Treasury takes a lead role in managing Government. Treasury is driven by the goal of and coordinating intergovernmental improving the lives of Queenslanders relations, including national funding 2018–19 saw softening international today, and to increase their future agreements, and securing a fair share and domestic conditions, presenting prosperity. One of our principal of GST revenue for Queensland. fiscal challenges that resulted in tasks is preparing the Queensland Treasury led the state’s response an easing of economic growth Budget, and for the 2019–20 Budget to the Commonwealth Grants compared with the previous financial the government made ‘Backing Commission’s five-yearly review of year. Despite this, the net operating Queensland Jobs’ its central tenet. the GST distribution system. surplus for 2018–19 is almost A $49.5 billion infrastructure program In 2018–19 Treasury continued $700 million higher than forecast in over the next four years reinforces the to provide high quality advice and the 2018–19 Budget. Treasury takes government’s commitment to creating input into energy, water, transport a prudent and responsible approach jobs. The 2019–20 capital program of and competition policy, to support to forecasting revenue outcomes to $12.9 billion is estimated to directly households and businesses and drive ensure the government can deliver support 40,500 jobs across the State. efficiency and productivity in these on its fiscal principles. Almost 60 per cent of the 2019–20 key sectors. A major achievement was capital works, supporting an estimated Natural disasters also had a the establishment of a new renewable 25,500 jobs, will be spent outside the devastating impact on Queensland energy government-owned corporation, Greater Brisbane area. communities and businesses, with the CleanCo Queensland Limited, to recovery costs and damage to public This committed investment in own, operate and grow a portfolio assets estimated at $1.3 billion in infrastructure was made possible by of low and zero emission electricity 2018–19. The most damaging event the sound fiscal management which generation assets for Queenslanders. of the past year was the North and Far Treasury delivers. As a result, net North Queensland Monsoon Trough operating surpluses are projected in in February 2019. Treasury supported each year of the forward estimates. the Deputy Premier, Treasurer and Minister for Aboriginal and Torres Strait Islander Partnerships in her engagement with the insurance 002 Queensland Treasury Annual Report 2018–19 Cross River Rail also moved a step Treasury also assumed leadership Our work in the year ahead will closer with the appointment of of the government’s response to continue to be guided by an inclusive, preferred proponents for the major the complex issue of native title strategic economic narrative for works packages in April 2019, which compensation. Treasury is developing Queensland that delivers further was followed by the completion of a framework that will be fair to native outcomes for the community. contracts for the tunnels, stations title holders, consistent across This is what Queensland Treasury and development package on claims, and achieve settlement of does: creating modern, innovative, 30 June 2019. Contracts for the compensation on ‘just terms’. sustainable solutions that meet a remaining works packages will To support funding for government range of economic, environmental be executed in early 2019–20. services, Treasury administers a and social needs for Queenslanders. Major milestones were realised this revenue base of around $16.9 billion. year for the City Deals program. In 2018–19 the Office of State Treasury continued to work with Revenue continued to adopt client- the Australian Government and centric practices for revenue collection, Townsville City Council to implement compliance, debt recovery and Frankie Carroll the Townsville City Deal, Australia’s enforcement. This includes adopting Under Treasurer first. A Statement of Intent was signed more online tools, progressing by all three levels of government for legislative improvements, fair and a South East Queensland City Deal, a efficient enforcement strategies, and significant achievement in what will utilising behavioural insights and be Australia’s largest City Deal to date. strategies to inform debt recovery. We also bring our policy, financial I would also like to acknowledge and commercial acumen to address Mr Jim Murphy, my predecessor as complex social and environmental Under Treasurer. Jim served with issues. The Build-to-Rent Pilot Project, distinction from June 2015 until a partnership with the private sector September 2018, before returning to deliver affordable rental housing, is to New South Wales to take up new underway. This project is designed to career opportunities. On behalf of help ease housing stress for eligible Treasury I would like to thank Jim for low-to-moderate income earners who his stewardship of the Queensland work in the inner city but cannot afford economy. I would also like to thank inner city rents. Ms Mary-Anne Curtis, Acting Under A long-term, lasting solution to the Treasurer from the time of Jim’s issue of Queensland’s abandoned departure until my commencement mine legacy was created with the in February