Territory Stories

Budget 2011-12 Budget Paper No.3 The Budget



Budget 2011-12 Budget Paper No.3 The Budget

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Tabled paper 1279


Tabled papers for 11th Assembly 2008 - 2012; Tabled papers; ParliamentNT




Tabled By Delia Lawrie


Made available by the Legislative Assembly of the Northern Territory under Standing Order 240. Where copyright subsists with a third party it remains with the original owner and permission may be required to reuse the material.




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292 Revenue Commonwealth Revenue Total Commonwealth grants and subsidies to the Territory in 201112 are estimated to be $3724million compared with $3804 million in 201011. The majority of the Territorys revenue from the Commonwealth is provided under the IGA. The Territorys Commonwealth revenue includes General Revenue Assistance (GRA, predominantly GST revenue), SPPs and NP payments. Commonwealth Own Purpose Expenses (COPEs), which are predominantly funding for fee for service arrangements payable to either government or nongovernment entities (and as such considered tied funding), are outside the remit of the IGA. The 201112 Commonwealth Budget will be released after the Northern Territory Budget, and will include revised estimates for Commonwealth funding provided to the Territory for both 201011 and 201112. The Territory will revise its own revenue estimates based on this information, and updated data (where required) will be reflected in the 201011 Treasurers Annual Financial Report and the 201112 MidYear Report. General Revenue Assistance The Territorys GRA is untied funding, and comprises GST revenue, grants in lieu of uranium mining royalties (arising from the Commonwealths ownership of uranium) and for natural disaster relief. GST revenue is the Territorys most significant single source of revenue and in 201112 is estimated at $2.657 billion, being 71per cent of the Territorys Commonwealth revenue and 57percent of the Territorys total revenue. The Territorys GST revenue is dependent on the amount of GST revenue collected nationally, the Territorys share of national population and the GST relativities recommended by the Commonwealth Grants Commission (CGC). A more detailed discussion of the factors that determine GST revenue is included in Budget Paper No. 2. Specific Purpose Payments The Territory is estimated to receive $273.4 million in SPPs in 201112 (excludes $85.8million onpassed to nongovernment schools). SPPs are provided to states and territories to assist them to achieve the outputs and outcomes of the National Agreements (NAs) established under the IGA. These NAs encompass the healthcare, education, skills and workforce development, affordable housing and disability sectors, as well as Indigenous reform. NAs were intended to be the main vehicles to operationalise the IGA, which aims to enhance government service delivery and facilitate nationally important social and economic reform. While the five SPPs (health, schools, skills and workforce development, affordable housing and disability) are required to be spent in their sectors, all are considered to also contribute to Indigenous reform. The 200910 base funding and ongoing indexation arrangements for each SPP were agreed under the IGA, as was the transition over five years to the distribution of each SPP to a populationshare basis (for the schools SPP, the Territory share is based on student enrolment in government schools). As the Territorys base SPP funding was higher than the amount determined on a populationshare basis, the Territorys SPP revenue will decline until the transition arrangements cease, with 201415 the first year of full distribution on a population basis. It will then grow in accordance with the agreed indexation. As the CGC takes SPP revenue into account in its assessment of relativities for GST purposes, the Territory should not be disadvantaged by the shift to populationbased SPP funding.

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