Legislative Council Wednesday 24 June, 2020
Ms FORREST question to LEADER of the GOVERNMENT in the LEGISLATIVE COUNCIL, Mrs HISCUTT
With regard to the Economic and Fiscal Update Report dated May 2020, in particular page 19 which estimates the decreases in dividend tax and rate equivalent income for government businesses at $140.2 million for 2020/21. I note this is a 38 per cent decrease.
1. What is the breakup of this amount, specifically listed by individual amounts for each business, as would be presented in a policy and parameter statement?
The revised returns to Government forecasts for 2020-21 are based on the assumption that Government business performance will be significantly impacted as a result of the COVID-19 pandemic.
It has been assumed that Aurora, MAIB and TT-Line will not make a profit or recognise any income tax expense in 2020-21. The estimates for Hydro reflect the forecast demand reductions from social distancing restrictions and reduced wholesale prices in the NEM. The forecast demand reductions have also been consistently applied to TasNetworks’ forecasts.
The reduced profitability of Government Businesses in 2019-20 has reduced the ordinary dividends paid in 2020-21. Income tax equivalents in 2020-21 have also decreased reflecting the continuation of reduced profits in the first part of 2020-21 with a gradual recovery stabilising results.
These forecasts will continue to be subject to review as circumstances evolve.