1307.8 - Australian Capital Territory in Focus, 2006  
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Contents >> Government

GOVERNMENT


HISTORICAL DEVELOPMENT

The site for the Australian Capital Territory (ACT) was chosen in 1907. On 1 January 1911, New South Wales (NSW) ceded its government authority over the ACT and parliamentary power of the Territory was vested in the Commonwealth. The site was commonly called the Federal Capital Territory until 1938. Until 1989, the Federal Minister for Territories made all decisions relating to the ACT.


In 1988, the Federal Government enacted the Australian Capital Territory (Self Government) Act 1988 making the ACT a self-governing territory and separate legal entity. With the introduction of self-government in the ACT, most of the ordinances in force at the time became Acts. However, the Commonwealth reserved some ordinances in areas such as national land and corporations law.


The ACT is currently represented in the Commonwealth Parliament by two Members in the House of Representatives and two Senators. Unlike the states and the Northern Territory (NT), the ACT does not have a Governor/Administrator.


The Australian Capital Territory (Self Government) Act 1988 provided for the establishment of the ACT’s Legislative Assembly and Executive. The first two Legislative Assembly elections (1989 and 1992) were held using a modified version of the d’Hondt system. Since then, the proportional representation Hare-Clarke system has been used. The Electoral (Amendment) Act 1997 changed the date of Assembly elections from February to October.

3.1 ACT ELECTION DATES
Date
First Assembly
4 March 1989
Second Assembly
15 February 1992
Third Assembly
18 February 1995
Fourth Assembly
21 February 1998
Fifth Assembly
20 October 2001
Sixth Assembly
16 October 2004
Source: Elections ACT, Election results.


The Electoral Act 1992 requires a redistribution of electoral boundaries before each general election for the ACT Legislative Assembly. The last review commenced in May 2003, after the formation of a redistribution committee, and was completed in October of that year. The election for the Seventh Assembly is due to be held on 18 October 2008.

3.2 ELECTORAL BOUNDARIES FOR THE ACT - June 2005
Electorate Statistical Subdivision (SSD)
Brindabella(a)
Tuggeranong (excluding Hume)
Southern remainder of the ACT (including Tharwa)
Ginninderra(b)
Belconnen
Molonglo(c)
Gungahlin
Canberra Central
Weston Creek
Woden Valley
Jerrabomberra (including Hume)
(a) Includes Chifley, Pearce & Torrens from the Woden Valley SSD.
(b) Includes Hall and Nicholls from the Gungahlin-Hall SSD.
(c) Excludes Chifley, Pearce & Torrens from the Woden Valley SSD and Hall & Nicholls from the Gungahlin-Hall SSD. Includes Kowen, Majura and Stromlo.
Source: Elections ACT, List of Localities.



STRUCTURE OF THE LEGISLATIVE ASSEMBLY

The Legislative Assembly performs various state and municipal functions. This makes it a unique government within Australia, acting at a state level in some matters (e.g. education and health), as well as at what is usually a local council level in others (e.g. waste management). As a result the ACT is sometimes referred to as a 'city state'.


The Legislative Assembly is made up of 17 full-time members who serve a fixed four year term. They are referred to as Members of the Legislative Assembly or MLAs. The MLAs have power to: elect a Chief Minister who forms a government to administer the ACT; make laws; investigate and debate matters of public importance; review the actions of the Government; and oversee the financial matters of the Government. The Chief Minister appoints ministers from the Assembly, with the Australian Capital Territory (Self Government) Act 1988 limiting the number of ministers to five. The Speaker is elected by and represents the Assembly in all contact with outside bodies.


The Assembly is unusual in that the Crown does not play a direct part in the legislation process. In the Federal Parliament the Governor-General signs each Bill as the last stage of creating an Act. If a Bill is passed by the Assembly, it is gazetted (i.e. a notice is placed in the Gazette) by the Chief Minister and it becomes an Act, that is, part of the law of the ACT.


As the Territory has no Governor or Administrator, there is no Executive Council as in the other states and the NT. Under the self-government legislation, the Chief Minister and up to four ministers appointed by the Chief Minister from the Assembly form the Cabinet (formally known as the ACT Executive). The Cabinet's functions are to: collectively govern and administer the Territory; implement all Territory law; and develop and manage the budget. Such power is similar to that accorded to the legislatures of the states, and is the most broad-ranging power that can be conferred.


Similar to Queensland and the NT Parliaments, the ACT Legislative Assembly has only one Chamber. It differs from the Federal Parliament and most other State Parliaments in that it is unicameral, that is, it has no equivalent Senate or Legislative Council.


The Chief Minister allocates to each minister the responsibility to administer certain functions. These include education, roads and transport, health, policing, the environment and employment. The Chief Minister fulfils the roles of both State Premier and Mayor.

3.3 ELECTED MEMBERS IN THE ACT LEGISLATIVE ASSEMBLY - 30 June 2006
Electorate Party Position
Barr, Andrew Molongo ALP Minister for Education and Training; Minister for Tourism, Sport and Recreation; Minister for Industrial Relations
Berry, Wayne Ginninderra ALP Speaker
Burke, Jacqui Molonglo Liberal
Corbell, Simon Molonglo ALP Attorney-General (includes Corrective Services); Minister for Police and Emergency Services; Minister for Planning
Dunne, Vicki Ginninderra Liberal Opposition Whip; Manager of Opposition Business
Foskey, Deb Molonglo ACT Greens
Gallagher, Katy Molonglo ALP Deputy Chief Minister; Minister for Health; Minister for Disability and Community Services (including Children, Youth and Family Services); Minister for Women
Gentleman, Mick Brindabella ALP
Hargreaves, John Brindabella ALP Minister for the Territory and Municipal Services (including Environment, Sustainability and Heritage, and Transport); Minister for Housing; Minister for Multicultural Affairs
MacDonald, Karin Brindabella ALP Government Whip
Mulcahy, Richard Molonglo Liberal Deputy Leader of the Opposition
Porter, Mary AM Ginninderra ALP
Pratt, Steve Brindabella Liberal Deputy Speaker
Seselja, Zed Molonglo Liberal
Smyth, Brendan Brindabella Liberal
Stanhope, Jon Ginninderra ALP Chief Minister; Treasurer; Minister for Business and Economic Development; Minister for Indigenous Affairs; Minister for the Arts
Stefaniak, Bill Ginninderra Liberal Leader of the Opposition
Source: Legislative Assembly of the ACT, Members.



STRUCTURE OF THE ACT PUBLIC SERVICE

The ACT Public Service was created on 1 July 1994 from the Commonwealth Public Service, of which it had previously been a part. Staff are currently employed within a number of ACT Government Departments and authorities.


At 30 June 2005, the ACT Public Service, for those covered by the whole of government HR system 'Perspect', consisted of 16,779 staff (equating to 14,213 full-time equivalent staff). This was a 4% increase in actual staff (also a 4% increase in full-time equivalent staff) from 30 June 2004. The upward trend in the size of the service since the year 2000 has continued into 2005. Actual and full-time equivalent staff numbers have increased 25% and 24% respectively since 2000.


The proportions of male and female staff in the service have remained relatively consistent between 2000 and 2005. At 30 June 2005, 67% of staff were female and 33% male, similar to the proportions recorded at 30 June for the previous five years.

3.4 ACT PUBLIC SERVICE STAFFING, By gender - 30 June
2000
2001
2002
2003
2004
2005
Actual staff numbers
Males no.
4 150
4 217
4 481
4 727
5 257
5 530
Females no.
9 225
9 495
9 952
10 324
10 871
11 249
Total no.
13 375
13 712
14 433
15 051
16 128
16 779
Full-time equivalent staff FTE
11 499
11 670
12 254
12 647
13 689
14 213
Source: Commissioner for Public Administration, State of the Service Report, 2004-05.


Employment type

The number of temporary employees within the ACT Public Service at 30 June 2005 was 2,081 people, down from 2004 (2,134). The rate of casual employment in the ACT Public Service since the year 2000 has remained at around 10%.

3.5 ACT PUBLIC SERVICE STAFFING(a) - 30 June
2000
2001
2002
2003
2004
2005
no.
no.
no.
no.
no.
no.
Permanent
Full-time
8 324
8 247
8 553
9 069
9 796
10 344
Part-time
2 189
2 183
2 366
2 433
2 578
2 705
Total
10 513
10 430
10 919
11 502
12 374
13 049
Temporary
Full-time
1 203
1 467
1 597
1 452
1 611
1 510
Part-time
357
452
478
502
523
571
Total
1 560
1 919
2 075
1 954
2 134
2 081
Casual
1 302
1 363
1 439
1 595
1 620
1 649
Total
13 375
13 712
14 433
15 051
16 128
16 779
(a) Actual staff. Excludes staff not recorded on the main payroll system, PERSPECT HRMIS.
Source: Commissioner for Public Administration, State of the Service Report, 2004-05.



GOVERNMENT FINANCE STATISTICS

Operating statement

In the ACT in 2004-05, Government Finance Statistics (GFS) operating revenue totalled $2,391m, with 45% ($1,076m) from current grants and subsidies, and a further 30% ($712m) from taxation revenue. With expenses totalling $2,682m in the year, the ACT Government net operating balance (NOB) was -$291m and net lending was -$167m.


GFS NOB is a summary measure of the ongoing sustainability of government operations. It is the difference between GFS revenue and GFS expenses that reflects the change in net worth due to transactions. A positive NOB indicates an increase in the net worth of government and a negative NOB indicates a decrease in net worth.

3.6 ACT GENERAL GOVERNMENT OPERATING STATEMENT
2002-03
2003-04
2004-05
$m
$m
$m
GFS Revenue
Taxation revenue
684
753
712
Current grants and subsidies
982
1 033
1 076
Sales of goods and services
240
260
274
Interest income
122
99
86
Other
332
218
243
Total
2 360
2 363
2 391
less
GFS Expenses
Gross operating expenses
Depreciation
141
134
151
Employee expenses
949
1 097
1 164
Other operating expenses
646
741
760
Total
1 736
1 971
2 076
Nominal superannuation interest expenses
11
20
51
Other interest expenses
58
54
54
Other property expenses
-
-
-
Current transfers
Grant expenses
333
352
395
Subsidy expenses
82
130
74
Other current transfers
90
-
-
Capital transfers
Grant expenses
-
-
24
Other capital transfers
39
38
10
Total expenses
2 348
2 566
2 682
equals
GFS Net Operating Balance
12
-203
-291
less
Net acquisition of non-financial assets
Gross fixed capital formation
115
160
186
less Depreciation
141
134
151
plus Change in inventories
-
-
-
plus Other transactions in non-financial assets
-116
-204
-158
Total
-142
-178
-124
equals
GFS Net lending (+)/Borrowing (-)
154
-25
-167
- nil or rounded to zero (including null cells)
Source: Government Finance Statistics, Australia, 2004-05 (cat. no. 5512.0).


Taxation revenue

Taxes on property were the source of 50% ($356m) of the ACT Government’s taxation revenue in 2004-05. A further 26% ($185m) came from taxes on employers’ payroll and the labour force.


Overall total taxation revenue dropped by 5% ($41m) between 2003-04 and 2004-05. The biggest decrease occurred in stamp duties on conveyances, down $44m (23%).

3.7 ACT GENERAL GOVERNMENT TAXATION REVENUE
2002-03
2003-04
2004-05
$m
$m
$m
Taxes on employers' payroll and labour force
Employers' payroll taxes
169
177
185
Taxes on property
Taxes on immovable property
Land taxes
41
49
56
Municipal rates
113
119
124
Other
4
9
5
Total
157
178
185
Taxes on financial and capital transaction
Financial institutions transactions taxes
17
17
17
Stamp duties on conveyances
176
192
148
Other stamp duties
9
18
6
Total
201
228
171
Total
359
406
356
Taxes on provision of goods and services
Taxes on gambling
Government lotteries
5
6
6
Private lotteries
8
7
7
Gambling machines
28
33
31
Casino taxes
2
2
2
Race betting taxes
2
1
1
Total
45
50
48
Taxes on insurance
Taxes on insurance n.e.c.
33
38
38
Total
33
38
38
Total
78
87
86
Taxes on use of goods and performance of activities
Motor vehicle taxes
Stamp duty on vehicle registration
24
24
24
Other
54
59
61
Total
78
83
85
Franchise taxes
Gas
-
-
-
Petroleum products
-
-
-
Tobacco
-
-
-
Liquor
-
-
-
Total
-
-
-
Other
-
-
-
Total
78
83
85
Total
684
753
712
Taxes received from public corporations
15
15
16
- nil or rounded to zero (including null cells)
Source: Taxation Revenue, Australia, 2004-05 (cat. no. 5506.0).


The ACT Government charged residents an average of $2,193 a year in property taxes, stamp duty, gambling taxes, payroll and other taxes in 2004-05. Across states and territories, NSW ($2,645) and Western Australia ($2,582) had the highest per capita taxation, while NT had the lowest ($1,784).

3.8 TAXATION PER CAPITA(a)
2002-03
2003-04
2004-05
Level of government
$
$
$
State and local
Australian Capital Territory
2 120
2 328
2 193
New South Wales
2 479
2 601
2 645
Victoria
2 285
2 457
2 520
Queensland
1 864
2 127
2 179
South Australia
2 019
2 282
2 387
Western Australia
2 139
2 506
2 582
Tasmania
1 558
1 698
1 817
Northern Territory
1 497
1 593
1 784
Average
2 207
2 404
2 462
Commonwealth
9 860
10 486
11 336
Australia
12 052
12 873
13 781
(a) Estimated Residential Population dated used in this table are sourced from Australian Demographic Statistics, June 2005, (cat.no 3101.0).
Source: Taxation Revenue, Australia, 2004-05 (cat. no. 5506.0).


Cash flow statement

The GFS Surplus/Deficit is a broad indicator of cash flow requirements. When this measure is positive (i.e. a surplus), it reflects the extent to which cash is available to the government to either increase its financial assets or decrease its liabilities (assuming no revaluations and other changes occur). When this measure is negative (i.e. a deficit), it reflects the extent to which the government requires cash, by running down its financial assets, or by drawing on the cash reserves of the domestic economy, or by borrowing from overseas.


In 2004-05, the ACT Government recorded a surplus of $35m. This was a drop of 88% from that recorded for the previous year.

3.9 ACT GENERAL GOVERNMENT(a), Cash flow statement
2002-03
2003-04
2004-05
$m
$m
$m
CASHFLOW STATEMENT
Cash receipts from operating activities
Taxes received
657
763
723
Receipts from sales of goods and services
292
290
318
Grants and subsidies received
1 032
1 063
1 117
Other receipts
279
395
422
Total
2 260
2 511
2 580
Cash payments for operating activities
Payments for goods and services
-1 287
-1 469
-1 694
Grants and subsidies paid
-441
-465
-507
Interest paid
-53
-54
-55
Other payments
-225
-267
-261
Total
-2 005
-2 255
-2 518
Net cash flows from operating activities
255
256
63
Net cash flows from investments in non-financial assets
Purchases of new non-financial assets
-131
-164
-189
Purchases of secondhand non-financial assets
-
-
-
Sales of non-financial assets
132
208
161
Total
1
44
-28
Net cash flows from investments in financial assets for policy purposes
19
-26
12
Net cash flows from investments in financial assets for liquidity purposes
-392
-95
-127
Net cash flows from financing activities
Advances received (net)
-10
-11
-11
Borrowing (net)
-29
-56
-63
Deposits received (net)(b)
-
-
-
Other financing (net)(b)
-5
-3
17
Total
-45
-70
-57
Net increase/decrease in cash held
-162
109
-137
SURPLUS (+)/DEFICIT (-)
Net cash flows from operating activities and investments in non-financial assets
257
300
35
Acquisitions of assets under finance leases and similar arrangements
-
-
-
Surplus (+)/Deficit (-)
257
300
35
- nil or rounded to zero (including null cells)
(a) negative figures denote cash outflows.
(b) Data are not available separately for these years.
Source: Government Finance Statistics, Australia, 2004-05 (cat. no. 5512.0).


Balance sheet

GFS net worth reflects the contribution of the ACT Government to the wealth of the ACT. The net worth as at 30 June 2005 was $9,265m, a drop of 2% from $9,380m recorded a year earlier. This represented an increase of 7% since 30 June 2003.


The most significant assets held by the ACT Government were Land and fixed assets of $6,084m, followed by Equity of $4,010m. The most significant liabilities were Unfunded superannuation and other employee liabilities of $2,789m, followed by Borrowing of $667m.

3.10 ACT GENERAL GOVERNMENT BALANCE SHEET
2002-03
2003-04
2004-05
$m
$m
$m
Assets
Financial assets
Cash and deposits
722
64
65
Advances paid
525
502
506
Investments, loans and placements
1 274
2 254
2 362
Other non-equity assets
302
258
146
Equity
3 419
3 895
4 010
Total
6 242
6 972
7 029
Non-financial assets
Land and fixed assets
5 312
5 656
6 084
Other non-financial assets
375
352
123
Total
5 687
6 008
6 207
Total
11 930
12 980
13 296
Liabilities
Deposits held
52
56
23
Advances received
272
262
251
Borrowing
622
633
667
Unfunded superannuation and other employee liabilities
1 994
2 338
2 789
Other provisions
25
22
8
Other non-equity liabilities
336
289
293
Total
3 301
3 600
4 031
GFS Net worth
8 629
9 380
9 265
Net debt
-1 575
-1 869
-1 993
Source: Government Finance Statistics, Australia, 2004-05 (cat. no. 5512.0).



BIBLIOGRAPHY


ABS

Taxation Revenue, Australia 2004-05, cat. no. 5506.0.


Government Finance Statistics, Australia, 2004-05, cat.no. 5512.0.


Australian System of Government Finance Concepts, Sources and Methods 2005, cat. no. 5514.0.



Non-ABS

Commissioner for Public Administration, State of the Service Report, 2004-05, last viewed 9 August 2006, <http://www.psm.act.gov.au/publications/State_Service_04-05.pdf>.

Elections ACT, ACT versus Commonwealth Electoral Systems, fact sheet, last viewed 9 August 2006, <http://www.elections.act.gov.au/adobe/FactSheets/FactSheetACTvComwlth.pdf>.

Elections ACT, Election results, last viewed 9 August 2006, <http://www.elections.act.gov.au/results.html>.

Elections ACT, List of Localities, last viewed 9 August 2006, <http://www.elections.act.gov.au/adobe/LocalitiesBW.pdf>.

Elections ACT, Hare-Clark electoral system, fact sheet, last viewed 9 August 2006, <http://www.elections.act.gov.au/adobe/FactSheets/FactSheetHareClark.pdf>.

National Capital Authority, The Siting and Naming of Canberra, last viewed 9 August 2006, <http://www.nationalcapital.gov.au/>.

Legislative Assembly for the ACT, Fact sheets, last viewed 9 August 2006, <http://www.parliament.act.gov.au/education/>.

Legislative Assembly for the ACT, Members, last viewed 9 August 2006, <http://www.parliament.act.gov.au/members/>.



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