Output 2.1 Economic Management
Overview
The directorate was responsible for providing analysis and advice to the ACT Government and agencies on a range of activities encompassing: economic and financial analysis; financial framework management and asset management; and financial assets and liabilities (including superannuation and insurance).
The directorate's responsibilities included preparing economic and revenue forecasts, monitoring and reporting on the state of the ACT economy, modelling the ACT economy and providing advice to the Chief Minister, Treasurer and other areas of government on economic and fiscal matters relating to the Territory. Officials participated in a range of inter-directorate working groups and processes to assess economic impacts of policy proposals and other initiatives being considered by Government. The directorate also managed the implementation of the Government's tax reform agenda and provided advice on competition matters.
The directorate managed the borrowings and investments of the Territory Banking Account (See Output EBT 1 Territory Banking Account) and the Government's unfunded employer superannuation liabilities and the investment assets of the Superannuation Provision Account (See Output EBT 1 Superannuation Provision Account).
The directorate oversaw the operations of the Australian and State Governments' financial relations framework encompassing the operations of the Intergovernmental Agreement on Federal Financial Relations.
The directorate also oversaw the ACT's financial relations with the Commonwealth, States and the Northern Territory within a framework encompassing the operations of the Intergovernmental Agreement on Federal Financial Relations.
The directorate was responsible for regulation of the ACT Compulsory Third Party (CTP) Insurance Scheme (See annexed Annual Report for the CTP Regulator).
Finally, the directorate was responsible for the administration of the Lifetime Care and Support Scheme for persons catastrophically injured in motor vehicle accidents in the ACT on or after 1 July 2014 and implementation of the continuing National Injury Insurance Scheme reform agenda (See annexed Annual Report for the Lifetime Care and Support Fund).
Highlights
Against this output in 2015-16 the directorate:
- prepared economic and revenue forecasts for the ACT Budget and Budget Review;
- reported to Government on stage 1 of tax reform and advised on stage 2 initiatives commencing 2017-18, building a fairer and more sustainable ACT tax system;
- monitored, reported and advised on movements to key economic indicators;
- led, in collaboration with the former Territory and Municipal Services Directorate, a request for expression of interest process on the way forward for the management of ACT streetlight assets;
- provided analysis and advice on economic aspects of projects and policy proposals including water, energy, climate change, housing and parking;
- successfully negotiated an update to the ACT's participation in the Asset Recycling Initiative increasing the estimated Commonwealth funding for Light Rail - Stage 1 to around $67 million;
- implemented the key outcome of the review of water and sewerage pricing framework in the ACT through amendments to the Independent Competition and Regulatory Commission Act 1997 in June 2016;
- led the Information Development Working Group with representation from all directorates, and progressed work under the Information Development Plan in partnership with the Australian Bureau of Statistics;
- facilitated the annual evaluation of the ACT's credit rating;
- managed the ACT Government's participation in the 2015-16 deliberations of the Standing Council on Federal Financial Relations (CFFR) and supported Heads of Treasuries (HoTs) Secretaries, and associated forums including Deputy Heads of Treasuries; GST Advisory Sub Committee, GST Policy & Administration Sub Group and the HoTs National Partnership Network;
- managed the flow of federal funding via the provisions of the Intergovernmental Agreement on Federal Financial Relations to the ACT totalling $1.9 billion (or approximately 41 per cent of ACT general government sector revenue in 2015-16);
- directed the ACT's participation in the Commonwealth Grants Commission processes, including the Report on GST Revenue Sharing Relativities - 2016 Update and the 2015 Methodological Review;
- implemented the amendments to the Financial Management Act 1996 that passed the Legislative Assembly in September 2015, that improved and modernised appropriation and budget management provisions;
- supported the Under Treasurer in his role as Chair of Heads of Treasuries Accounting and Reporting Advisory Committee, including providing the secretariat function for the Committee;
- developed amendments to the Lifetime Care and Support (Catastrophic Injuries) Act 2014 to extend the Scheme to cover ACT catastrophic private sector work injuries. The amendments were passed in May 2016 and apply to work accidents occurring on or after 1 July 2016;
- supported the functions of the Lifetime Care and Support Commissioner of the ACT (see annexed Annual Report for the LTCS Commissioner); and
- supported the functions of the CTP Regulator, including approving new premium filings for all insurers and introducing new arrangements to cover rideshare (See annexed Annual Report of the CTP Regulator).
The directorate met two of the three targets against this output. The target not met was (a) Briefings on the ACT economy which was just 4 per cent short of the target.
Future Direction
In 2016-17 the directorate will provide economic analysis and advice to the Government and agencies; manage federal financial relations; and provide accounting, financial framework, and insurance policy advice. The directorate will:
- monitor and advise on the state of the ACT economy;
- help deliver the Pre Election Budget Update, 2016-17 Budget Review and the 2017 -18 Budget;
- undertake economic and fiscal modelling and revenue forecasting;
- implement the Government’s policy on taxation;
- contribute, in collaboration with Transport Canberra and City Services Directorate, to the implementation of the way forward for the management of the streetlight assets;
- provide economic assessment and advice on a range of matters to be considered by the Government;
- manage the ACT Government's participation in the 2016-17 deliberations of the CFFR and supporting fora;
- manage the flow of federal funding to the ACT estimated at $2.1 billion;
- direct the ACT's participation in the Commonwealth Grants Commission Report on GST Revenue Sharing Relativities - 2017 Update;
- monitor and report on progress in implementing the agreed Asset Recycling Initiative asset sale schedule;
- continue to implement reforms arising from the Government's response to the review of the Water and Sewerage pricing framework;
- provide support to the Under Treasurer in his role as Chair of the Heads of Treasuries Accounting and Reporting Advisory Committee, including providing the secretariat function for the Committee;
- continue progressing improvements to compulsory third party insurance arrangements in the ACT;
- complete implementation of the extension of the Lifetime Care and Support Scheme to catastrophically injured private sector workers; and
- continue progressing review and reform of the Financial Management ACT 1996.
For further information contact:
Karen Doran
Executive Director
Economic and Financial Group
+ 61 2 6207 0264
Karen.Doran@act.gov.au
