Our financial position explained

Queensland Treasury’s financial statements fall into two categories:

Administered – the funds it administers on behalf of the government
Controlled – the revenue, expenses, assets and liabilities it uses to conduct its business as a department

Analysis

In 2019–20, Queensland Treasury administered $34.446 billion of revenue and $6.533 billion of expenses on behalf of the state. This excludes administered item revenue which is appropriation revenue received from the Consolidated Fund to meet administered expenses.

The largest single source of administered revenue was grants and other contributions of $17.834 billion, followed by state taxes of $11.549 billion.

The main component of Commonwealth grant revenue was Queensland’s share of GST. Other Commonwealth revenue includes funding for National Partnership Payments and Specific Purpose Payments.

In response to the Queensland Government’s measures to support Queenslanders’ health, jobs and businesses in response to COVID-19, Treasury implemented payroll tax, land tax, gaming tax and Regional Home Builder Grant boost relief measures.

Treasury also administered the Queensland First Home Owners’ Grant on behalf of the state in 2019–20.

Treasury’s controlled revenue consists principally of Parliamentary appropriations. In 2019–20, appropriation revenue allocated to services was $252.325 million (compared with $241.390 million in 2018–19).

Administered

Queensland Government Insurance Fund

The Queensland Government Insurance Fund (QGIF), administered by Treasury, is a self-insurance arrangement which commenced on 1 July 2001. Government agencies pay premiums intended to meet the cost of claims arising from incidents occurring in the premium year, with the claims to premium ratio at 96% since commencement. QGIF also meets the cost of claims arising from incidents occurring prior to 1 July 2001.

Claims are paid out of Queensland Treasury’s Administered accounts, while the provision for outstanding claims is held at the whole-of-government level.

The estimated outstanding claims liability as at 30 June 2020 was $2,624 million, compared to $1,764 million at 30 June 2019. The significant increase is largely driven by the recognition of a provision for historical serious physical child abuse claims following the removal of the limitation period, an increase in the provision for historical child sexual abuse claims following greater than expected claim experience, and business interruption claim costs arising from COVID-19. Investments intended to meet the government’s outstanding claims liabilities are held by Queensland Treasury Corporation within its long-term assets. The fund reinsurance program has been in place since 1 November 2011 and is subject to annual renewal.

QGIF’s outstanding claims liability and associated investments are reported in the government’s annual Report on State Finances.

Queensland Treasury administered revenue

State taxes, royalties and other state revenue 2019–20

Duties $4.62B
Gaming taxes and other taxes $1.18B
Other state revenue $0.36B
Payroll tax $4.25B
Royalties $4.49B
Land tax $1.41B
Fees, levies and fines $0.29B

Total administered expenses by category 2019–20

Superannuation benefit payments $1.75B
Annual Leave Central Scheme $1.96B
Long service leave reimbursements $0.48B
Finance costs $1.20B
Grants and subsidies $0.62B
Supplies and services $0.14B
All other expense $0.40B

Queensland Treasury Administered statement of comprehensive income for the year ended 30 June 2020

Controlled

Total expenses by category 2019–20

Employee expenses $120.81M
Supplies and services $125.16M
Grants and subsidies $11.59M
Depreciation and amortisation $4.47M
Other expenses $3.86M

Total expenses by service 2019-20

Queensland Treasury-controlled key financial performance indicators

Queensland Treasury and controlled entity statement of comprehensive income for the year ended 30 June 2020

Last updated: 29 September 2020

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