Insurance Commission improves State mid-year finances

21  December 2017

The Treasurer, Hon Ben Wyatt MLA, released the Mid-Year Financial Projections Statement on 20 December 2017 updating the State Budget-time forecasts.

The Insurance Commission was highlighted as helping to reduce State Net Debt from its sale of Westralia Square ($298 million), increasing revenue by $47 million through higher investment returns in 2016-17 and paying down debt by  $97.7 million via a return of capital by RiskCover.

Below are excerpts from the Mid-Year Financial Projections Statement:

Page 1 - ‘Total public sector net debt is forecast to be $42.8 billion by 30 June 2021, down $854 million since Budget. This largely reflects the flow-on impact of a lower net debt outcome at 30 June 2017 ($536 million) and the impact of the sale of Westralia Square by the Insurance Commission of Western Australia ($298 million).’

Page 8 - ‘Higher revenue from public corporations (up $108 million or 4.9%), reflecting the net impact of payments from:

• Insurance Commission of Western Australia (up $47 million), mainly reflecting an increase in forecast dividends from better than expected investment performance in 2016-17, and an increase in tax equivalent revenue from higher realised investment gains in 2017-18;’

Page 121 - ‘In line with the Government’s election commitments, a Debt Repayment Account has been established to apply windfall funds to the repayment of Consolidated Account borrowings.

The initial funds to flow through the account will come from a large, one-off duty assessment for a high value commercial property transaction which was issued by the Commissioner of State Revenue in late 2016-17, and surplus funds from RiskCover that are to be paid into the Consolidated Account over the forward estimates period.’