Overview
The Directorate was responsible for providing analysis and advice to the 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 also provided oversight of the operations of the Australian and State Governments' financial relations framework encompassing the operations of the Intergovernmental Agreement on Federal Financials Relations.
The Directorate's responsibilities included preparing economic and revenue forecasts, monitoring and reporting on the state of the ACT economy, modelling the ACT economy, providing advice to the Chief Minister, Treasurer and other areas of Government on economic and fiscal matters relating to the Territory and analysing the economic and budgetary effects of long term demographic changes.
It managed the borrowing and investments of the Territory Banking Account, and the Government's unfunded employer superannuation liabilities and the investment assets of the Superannuation Provision Account.
The Directorate was also responsible for regulation of the ACT Compulsory Third Party (CTP) Insurance Scheme. It enhanced the policy and procedures of CTP insurance for vehicles in the ACT with the aim of improving the system of CTP insurance for motorists.
The Directorate administered the Lifetime Care and Support Scheme for persons catastrophically injured in motor vehicle accidents in the ACT on or after 1 July 2014. The Scheme was introduced by the Lifetime Care and Support (Catastrophic Injuries) Act 2014. In addition it had carriage of the remaining National Injury Insurance Scheme reform agenda.
Highlights
Against this Output in 2013-14 the Directorate:
- developed revenue initiatives for the 2014-15 Budget; including tax reform initiatives;
- prepared economic and revenue forecasts for the ACT Budget and Budget Review;
- monitored, reported and advised on movements to key economic indicators;
- provided analysis and advice on economic aspects of projects and policy proposals including water, energy, climate change, housing and parking;
- provided administrative and secretariat support to the Industry Panel, established in April 2014 to review the Independent Competition and Regulatory Commission's Water and Sewerage 2013-19 Pricing Direction;
- enabled the annual evaluation of the ACT's credit rating;
- procured 300 new pay parking machines for the ACT's off-street car parks, with new payment options for credit cards and smart phones;
- coordinated changes to the system of Extension of Time fees designed to relieve existing debts, simplify fee structures and encourage the completion of developments;
- managed the ACT Government's participation in the 2013-14 deliberations of the COAG Standing Council on Federal Financial Relations and supporting Heads of Treasuries forum;
- managed the flow of federal funding to the ACT totalling $1.8 billion or approximately 42 per cent of ACT general government sector revenue in 2013-14;
- managed the ACT's early participation in the Commonwealth Grants Commission 2015 Methodology Review of GST Revenue Sharing Relativities;
- implemented the Lifetime Care and Support Scheme for catastrophically injured persons as a result of a motor accident, which commenced on 1 July 2014; and
- supported the functions of the CTP Regulator, including the entry of three additional CTP insurers into the ACT CTP insurance scheme with effect from 15 July 2014.
The Directorate met both of its targets in relation to the submission of an annual update to the Commonwealth Grants Commission and a submission to the credit and rating agency Standard and Poor's Rating Service. In relation to the indicator on briefings of the ACT economy, 111 briefings were completed and published on the Directorate's website against a target of 115. The decrease in briefings was a result of a decision taken to discontinue briefing on a particular indicator due to declining relevance.
Future Directions
In 2014-15, 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;
- provide input to help deliver the 2014-15 Budget Review and 2015-16 Budget;
- undertake economic and fiscal modelling and revenue forecasting;
- progress the implementation and further development of tax reform initiatives;
- provide economic advice on industry sectoral matters;
- manage the ACT Government's participation in the Commonwealth's Asset Recycling Initiative;
- provide ongoing administrative and secretariat support to the Industry Panel reviewing the Independent Competition and Regulatory Commission's Water and Sewerage 2013‑19 Pricing Direction;
- manage and complete ACT participation in the Commonwealth Grants Commission 2015 Methodology Review of State Revenue Sharing Relativities;
- manage Treasury participation in the development of the Federal Government's White Papers on Federalism and National Tax Reform;
- progress implementation of the next phase of the catastrophic injury scheme (National Injury Insurance Scheme);
- progress improvements to CTP arrangements in the ACT;
- progress a review and reform of the Financial Management Act 1996; and
- contribute to Heads of Treasuries and Council of Federal Financial Relations processes and support the Heads of Treasury Accounting and Reporting Advisory Committee.
Further Information can be obtained from:
Karen Doran
Executive Director
Economic and Financial Group
+61 2 6207 0337