Taxation revenue is projected to increase over the forward estimates, compared to estimates at the time of PEFO. The increases are largely in payroll tax as a result of employment and wage growth, and increased duty on conveyances following a large transaction in 2012-13 and some recovery in property market transaction volumes. The timing differences largely relate to expenditure requirements associated with tied Commonwealth funding. As foreshadowed in PEFO, the timing of expenditure related to Commonwealth funds received late in the financial year would not be finalised until agency outcomes for were finalised. Now that agency outcomes have been finalised, some additional timing changes to provisionally included in PEFO have been included in the Mini Budget, largely accounting for the timing changes across years. The Darwin Correctional Facility that is being constructed and operated under a Public Private Partnership (PPP) arrangement is due to be completed in the last quarter of In accordance with accounting standards, although the Territory will not make any payments during the construction phase, the Territory will recognise the asset and associated finance lease liability on its books once construction is completed. Subsequent to financial close in October 2011, the construction cost was recorded in the 2013-14 forward estimate as an asset and associated finance lease liability, at a value of $495 million. Following further accounting advice, the fair value of the asset has been reassessed to incorporate certain costs incurred by the private consortium during the construction phase that meet the capitalisation criteria under accounting standards. Therefore the fair value of the asset and associated finance lease liability has been increased by $26 million to $521 million in This book adjustment to the construction component does not increase the quarterly service payment streams over the concession period that covers both the capital and ongoing maintenance costs of the facility. Policy Changes since PEFO Table 3.6 highlights the effect of policy changes on the non financial public sector’s fiscal balance since PEFO. Table 3.6: Policy Changes since PEFO 2012-13 2015-16 $M $M $M $M Election 42 - 86 - 93 - 97 82 118 124 129 commitments - 4 - 15 - 14 - 10 Legacy items Other policy decisions - 128 219 231 236 Subtotal Savings measures 71 202 270 299 Revenue measures 23 69 79 81 Power and Water 11 36 47 59 Corporation Capital Operational 36 38 39 60 Tariffs 53 112 118 125 Housing assistance packages 11 68 27 15 Subtotal 205 525 580 639
Taxation revenue is projected to increase over the forward estimates, compared to estimates at the time of PEFO. The increases are largely in payroll tax as a result of employment and wage growth, and increased duty on conveyances following a large transaction in and some recovery in property market transaction volumes. The timing differences largely relate to expenditure requirements associated with tied Commonwealth funding. As foreshadowed in PEFO, the timing of expenditure related to Commonwealth funds received late in the financial year would not be finalised until agency outcomes for were finalised. Now that agency outcomes have been finalised, some additional timing changes to provisionally included in PEFO have been included in the Mini Budget, largely accounting for the timing changes across years. The Darwin Correctional Facility that is being constructed and operated under a Public Private Partnership (PPP) arrangement is due to be completed in the last quarter of In accordance with accounting standards, although the Territory will not make any payments during the construction phase, the Territory will recognise the asset and associated finance lease liability on its books once construction is completed. Subsequent to financial close in October 2011, the construction cost was recorded in the forward estimate as an asset and associated finance lease liability, at a value of $495 million. Following further accounting advice, the fair value of the asset has been reassessed to incorporate certain costs incurred by the private consortium during the construction phase that meet the capitalisation criteria under accounting standards. Therefore the fair value of the asset and associated finance lease liability has been increased by $26 million to $521 million in This book adjustment to the construction component does not increase the quarterly service payment streams over the concession period that covers both the capital and ongoing maintenance costs of the facility. Policy Changes since PEFO Table 3.6 highlights the effect of policy changes on the non financial public sector’s fiscal balance since PEFO. Table 3.6: Policy Changes since PEFO Election commitments Legacy items Other policy decisions Subtotal $M 42 82 - 4 - 128 $M - 86 118 - 15 219 $M - 93 124 - 14 231 $M - 97 129 - 10 236 Savings measures 71 202 270 299 Revenue measures Power and Water Corporation Operational 23 11 69 36 79 47 81 59 Capital 36 38 39 60 Tariffs 53 112 118 125 Housing assistance packages 11 68 27 15 Subtotal 205 525 580 639 2012-13 2015-16 2012-13 2013-14