Introduction
This Statement of Corporate Intent (SCI) is a high level summary of the Corporate Plan and includes a performance agreement between the Board of the Public Trustee and the Shareholding Ministers.
The performance agreement details the key financial and non-financial targets for the Public Trustee for 2022-23, as agreed between the Board and the Shareholding Ministers through the 2022-23 Corporate Planning process. It also details estimates for the following three years.
The SCI has been prepared in accordance with the Ministerial Charter for the Public Trustee.
Strategic direction
The Public Trustee is a Government Business Enterprise (GBE) established by the Public Trustee Act 1930. Principal commercial activities undertaken include the provision to the general community of access to professional advice and service in relation to trustee services including:
- preparation of wills
- estate administration
- trust management and powers of attorney; and
- protection of the financial interests of individuals under a legal, physical or intellectual disability where the Public Trustee is appointed to act on their behalf.
The strategic direction of the Public Trustee has changed.
Our aim is to provide a safety net to all Tasmanians, always: helping them to protect their legacy through our services of wills, estates and financial administration.
Core to our purpose is the provision of financial administration services to Represented Persons.
Over the Corporate Plan period the Public Trustee will be focused on the following goals:
- Our customer is central
- Strong and trusted relationships with stakeholders
- A committed, capable and engaged workforce; and
- A fit for purpose business model.
The Treasurer and the Attorney-General have advised that no dividend will be payable in relation to the Public Trustee’s 2021-22 or 2022-23 operations. Instead, any profits are expected to be invested by the Public Trustee into supporting its response to the recommendations from the Independent Review.
Performance Agreement
This Performance Agreement sets out the key financial and non-financial targets for 2022-23 and estimates for the following three years are detailed in the tables below.
Financial Returns to Government
| Target | Estimates | |||
| 2022-23 | 2023-24 | 2024-25 | 2025-26 | |
| Dividends Paid ($ ‘000) | – | – | – | – |
| Tax Equivalents Paid/(Refund) ($ ’000) | – | – | – | – |
| Total | – | – | – | – |
Financial Targets
| Target | Estimates | |||
| 2022-23 | 2023-24 | 2024-25 | 2025-26 | |
| Operating Expenditure ($’000) | 11,430 | 11,385 | 11,789 | 12,222 |
| Operating Profit/(Loss) After Tax ($’000) | (130) | 83 | (189) | (367) |
| Total Comprehensive Income ($’000) | 62 | 275 | 3 | (176) |
| Capital Expenditure ($ ‘000) | 100 | 100 | 100 | 100 |
| Operating Margin | 0.98 | 1.01 | 0.98 | 0.96 |
| Return on Assets (%) | (0.7%) | 0.5% | (1.1%) | (2.1%) |
| Return on Equity (%) | 0.6% | 2.5% | 0.0% | (1.6%) |
| Capital Adequacy (%) | 39.0% | 40.8% | 41.5% | 41.6% |
| Performance of Common Fund | Return objective: Performance above RBA Cash rate. | |||
| Performance of Group Investment Fund No.2 | Return objective: CPI + 2% per annum over rolling 5 year periods. | |||
| Performance of Corporate Investments | Return objective: CPI + 2% per annum over rolling 5 year periods. | |||
Key Non-Financial Performance Indicators
| Target | Estimates | |||
| 2022-23 | 2023-24 | 2024-25 | 2025-26 | |
| Number of total new wills completed | 800 | 850 | 900 | 950 |
| Beneficiary survey results (overall satisfaction rating) | 95% | 95% | 95% | 95% |
| Will client survey results (overall satisfaction rating) | 100% | 100% | 100% | 100% |
New performance indicators in response to the Independent Review:
| Target | Estimates | |||
| 2022-23 | 2023-24 | 2024-25 | 2025-26 | |
| Number of Wills revoked / later Wills (average per month) | 60 | 30 | 15 | 10 |
| Represented Person survey (%) | 75 | 80 | 85 | 90 |
| Stakeholder engagement survey (%) | 75 | 80 | 85 | 90 |
| Obligations under the Guardianship and Administration Act 1995 Act to represented persons in respect of promoting their independence and communication in respect of their wishes: | ||||
| New clients consulted following receipt of order from TasCAT: Will, preference and rights identified and documented (%) | 100 | 100 | 100 | 100 |
| New clients: Contact to be made within 5 days of receipt of order from TasCAT (%) | 90 | 90 | 90 | 90 |
| Existing clients consulted annually: Will, preference and rights reviewed, confirmed, and documented (%) | 100 | 100 | 100 | 100 |
| Consult with clients to identify participation in financial independence program (%) | 100 | 100 | 100 | 100 |
| Culture – staff engagement survey | 75 | 80 | 85 | 90 |
Community Service Obligations
In line with the terms of the Public Trustee’s Ministerial Charter, the Government will provide funding to assist in meeting the cost of non-commercial activities (Community Service Obligations) required to be undertaken by the Public Trustee.
The Public Trustee performs the following Community Service Obligations on behalf of the Government:
- Administration of Absolute Estates with a gross asset value of less than $60 000.
- Administration of Continuing Trust and Life Tenancy Estates with a gross asset value of less than $100 000.
- Administration and management of Minor Trusts with a gross asset value of less than $20 000.
- Management of assets for Represented Persons with a gross asset value of less than $100 000.
Following the undertaking of the Independent Review and in recognition of the significant work and change being undertaken by the Public Trustee to implement the Review’s recommendations, an interim CSO Agreement is being finalised for 2022-23, with a new CSO Agreement to be drafted for 2023-24 onwards. A summary of the expected funding amounts is set out as follows:
| CSO Funding | Target | Estimates | ||
| 2022-23 | 2023-24 | 2024-25 | 2025-26 | |
| Community Service Obligations ($ ‘000) | 3,321 | 3,389 | 3,457 | 3,474 |
Definitions
Operating Profit Before Tax means operating revenue less operating expenditure.
Comprehensive Income includes remeasurement of defined benefit obligation and fair value movements in investments in managed funds (net of related tax)
Total Comprehensive Income means operating profit for the year after tax + Comprehensive Income.
Operating Margin means operating revenue / operating expenditure.
Return on Assets means operating profit before Tax/[(Opening Assets + Closing Assets)/2].
Return on Equity means Total Comprehensive Income/[(Opening Equity + Closing Equity)/2].
Capital Adequacy means Tangible Reserves / Tangible Assets.