Insurance Commission improves State mid-year finances

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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.’

Page Last Updated 21 Dec 2017

Media contact

Kane Blackman
Commission Secretary
+61 8 9264 3556
+61 418 255 549