Annual Report Report Annual 20 09 – 10 Queensland Treasury Queensland Queensland Treasury Queensland Treasury Annual Report 2009–2010 www.treasury.qld.gov.au Tomorrow’s Queensland: strong, green, smart, healthy and fair 20 September 2010 The Honourable Andrew Fraser MP Treasurer and Minister for Employment and Economic Development GPO Box 611 BRISBANE QLD 4000 Dear Treasurer I am pleased to present the Annual Report 2009-10 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 2009, and • the detailed requirements set out in the Annual Report Requirements for Queensland Government Agencies. A checklist outlining the annual reporting requirements can be accessed at www.treasury.qld.gov.au Yours sincerely Gerard Bradley Under Treasurer About our annual report The Queensland Treasury Annual Report 2009-10 is an integral part of our corporate governance framework and is one of the main tools we use to ensure we are accountable to the Queensland Parliament and the community about our activities. This report details our achievements, performance and financial position for the 2009–10 financial year. It aligns with the Queensland Treasury Strategic Plan 2009-14, Service Delivery Statement 2009–10, and the Queensland Government’s broad objectives for the community as outlined in Toward Q2: Tomorrow’s Queensland. It also provides information on our future direction, people management and corporate governance processes. This report is available online: www.treasury.qld.gov.au/annual-report Enquiries about this annual report can be directed to the Principal Consultant, Communication and Web Services, telephone 61 7 3008 8142, facsimile 61 7 3224 2858 or email [email protected] © The State of Queensland (Queensland Treasury) 2010 ISSN 1837-2848 Under Treasurer’s report Over 2009-10, Treasury staff addressed a range of significant fiscal and economic challenges in response to the continuing impacts of the global financial crisis. In the 2010-11 State Budget, we were able to report an improved position while incorporating a $17.1 billion capital program for Queensland’s infrastructure needs. Economic growth is expected to have strengthened from 1.2 per cent in 2008-09 to 3 per cent in 2009-10. A restructure of the State’s balance sheet is one of the Government’s key economic strategies and an important part of our economic plan to return the Budget to surplus in 2015-16 — a year earlier than expected. Central to the Government’s recovery strategy is the infrastructure reform and sale program. In 2009-10, detailed scoping studies were finalised determining the most appropriate sale model and expected sale timeline for each asset under the program. During the year the first divestment, the sale of a 99-year licence to operate Queensland’s forestry plantations, was also finalised. National reform was another major focus during 2009-10, most notably in health, taxation and Commonwealth-State financial relations. We provided advice on issues arising from the Australia’s Future Tax System Review, and continued our contribution to the Commonwealth Grants Commission’s review of the distribution of goods and services tax payments. During the year, our contribution to the Council of Australian Governments (COAG) included a review of National Agreements, National Partnerships and Implementation Plans, and major health reforms. Implementing these reforms will be a major and complex body of work. In this we will continue to partner with the Department of the Premier and Cabinet and other agencies such as Queensland Health. In 2009-10 the final instalment of our revenue management system was completed. Business and individuals can now pay State taxes and apply for grants and subsidies online from one secure interface, with a take-up of almost 100% from duty self assessors achieved. The Planning Information and Forecasting Unit (PIFU) joined Treasury from the Department of Infrastructure and Planning during the year, consolidating the Government’s economic and demographic research capabilities. In 2009-10, PIFU provided a vital demographic knowledge base for the Queensland Government’s 2010 Growth Management Summit. During the year, Treasury administered some $25.33 billion of revenue and $4.299 billion of expenses on behalf of the State. As a Government agency, Treasury received $195.119 million in revenue and incurred $194.435 million in expenses. Looking ahead, we expect 2010-11 to be another year where Treasury’s expertise will be called upon to provide advice to the Government to meet its complex fiscal and economic challenges. Gerard Bradley Under Treasurer Treasury Annual Report 09-10 1 2009-10 key 2010-11 key Our direction achievements priorities for 2010-11 • Developed the 2010-11 State • Continue to support economic In 2010-11, we will pursue the Budget, including a $17.1 billion recovery as we frame the following objectives, outlined in infrastructure program, and 2011-12 State Budget and the Treasury Strategic Plan monitored and reviewed the monitor the 2010-11 Budget. 2010-15: 2009-10 State Budget. • Negotiate Queensland’s position • Restore the State’s financial • Oversaw Queensland’s on National Partnership position by meeting the achievement of deregulation Agreement reform initiatives. Government’s revised fiscal commitments under the National • Progress the Government’s principles while managing the Partnership Agreement to Deliver assets sale program. continuing effects of the global a Seamless National Economy, financial crisis. • Collect a forecast $966 million in including payroll tax • Continue structural, harmonisation and standard dividends and current tax equivalents. infrastructure and other reforms business reporting. to raise the productivity of the • Finalised scoping studies to • Work with GOCs as they Queensland economy and raise determine the sale structure and implement their capital living standards in an timing for the five assets and expenditure programs, budgeted environment where the relative completed the $603 million sale for $6.142 billion, including strength of the economy is in of a 99-year licence to operate electricity distribution network part influenced by factors Queensland’s forest plantations. upgrades worth $2.189 billion. outside of the Government’s • Progressed a review of the • Produce population projections control. preparedness of energy for Queensland to inform • Ensure Government resources generator Government-owned government, private and achieve value for money, are corporations (GOCs) to respond community planning, policy and directed to services that improve to the challenges of carbon resource allocation. the quality of life of the reduction measures and an • Publish the Retail Price Index, a community, and are delivered increasingly competitive market. measurement of the relative efficiently and equitably. • Collected $1.11 billion in price differences in basic • Manage our role in the Council of dividends and current tax household groceries and Australian Governments’ reform equivalents from GOCs to fund services across the State. agenda and the Commonwealth critical water, energy, ports and • Implement taxation reform Grants Commission review rail infrastructure projects. initiatives from the 2010-11 processes to deliver the best • For the Queensland Growth State Budget, including a land outcomes for Queensland. Summit 2010, advised the State tax exemption for supported • Maintain and build the capability Government on demographic accommodation facilities, a of our people, our processes and trends and the relationship transfer duty exemption for our organisation to meet our between population growth and Special Disability Trusts and the challenges in an increasingly the economy. Regional First Home Owner constrained resource Grant. • Conducted a study into environment. demographic trends arising out • Via the Office of State Revenue, of Queensland’s mining and raise a forecast $8.9 billion in infrastructure boom. revenue. • Via the Office of State Revenue, raised $8.4 billion in revenue which contributed to the provision of essential services. • Continued taxation reform by implementing a range of initiatives, including a payroll tax rebate for apprentices and trainees and an increased payment period for land tax. • Consolidated all grant and taxation streams into a single, integrated e-business system. 2 Treasury Annual Report 09-10 Our vision Our values Contents Letter of compliance inside front cover Under Treasurer’s report 1 Treasury’s vision We value the is to improve the following Key achievements and priorities 2 quality of life for behaviours among all Queenslanders our people: About us 4 and contribute to • achievement and the Government’s excellence Who we are 4 key priorities for Changes in Treasury 5 the community • trust and through its Toward integrity Delivering the Government’s priorities 6 Q2: Tomorrow’s • innovation and Queensland plan. learning The year in review 7 • teamwork. Output reports 11 Financial and economic policy 12 Government owned corporations performance and governance 16 Economic and statistical research 20 Revenue management 24 Our people 28 Managing our organisation 33 Financial position in detail 39 Financial statements 44 Appendices 108 Overseas travel 108 Consultancies 108 Publications 108 Statutory responsibilities 108 Legislation 109 Glossary 110 Index 110 Contacts 112 Treasury Annual