Financial statements | State Revenue Office

Table 10: Operating statement

For the year ended 30 June 2026	2025–26 $’000	2024–25 $’000
Income from transactions
Revenue from government*	245,838	258,505
Sales of goods and services	707	707
Resources received free of charge	12,448	-
Payments to consolidated fund	(650)	(415)
Total income from transactions	258,343	258,797
Expenses from transactions
Employee benefits	124,066	129,135
Supplies and services	99,767	103,927
Depreciation and amortisation	9,323	8,915
Resources provided free of charge	12,448	-
Interest expenses	20	14
Total expenses from transactions	245,624	241,991
Net result from transactions	12,719	16,806
Other economic flows in net result
Net gains/(losses) on financial instruments	-	(28)
Net gains/(losses) on non-financial assets	15	13
Other gains/(losses) on other economic flows	897	107
Total other economic flows in net result	912	92
Net surplus/(deficit) for reporting period	16,631	16,898
_{* Revenue from government represents the output budget allocated to the SRO.}

The decrease of $5.1 million in employee benefits was mainly due to an overall decrease in FTE numbers that resulted in a $2.9 million decrease in salaries and wages and a $2.2 million decrease in leave expenses.
The $12.4 million of resources received free of charge revenue and resources provided free of charge expense are accommodation costs associated with the SRO offices, which were funded to and paid by the Department of Government Services.
The decrease of $4.2 million in supplies and services was associated with a reduction in accommodation costs of $14.0 million due primarily to the funding change in relation to SRO offices’ costs, an increase of $4.9 million in a once-off emergency services and volunteers fund payment to local councils, and an increase of $3.6 million in IT expenses.
Expenses from transactions exclude $0.7 million in relation to the administration of the growth areas infrastructure contribution, which is operated through a Treasury Trust.

As at 30 June 2026	2025–26 $’000	2024–25 $’000
Financial assets
Cash assets	-	-
Receivables	90,655	94,000
Total financial assets	90,655	94,000
Non-financial assets
Plant, property and equipment	468	77
Intangible assets	42,370	42,473
Other	7,200	5,151
Total non-financial assets	50,038	47,701
Total assets	140,693	141,701
Liabilities
Payables	26,416	28,632
Interest-bearing liabilities	299	473
Provisions	33,029	32,574
Total liabilities	59,744	61,679
Net assets	80,949	80,022

	2025–26 $’000	2024–25 $’000
Amounts owing from Victorian Government	88,727	92,008
GST input tax credit recoverable	1,334	1,394
Other receivables	594	598
Total receivables	90,655	94,000

	2025–26 $’000	2024–25 $’000
Computer equipment	468	77
Plant, furniture and equipment	-	-
Leasehold improvements/fit-outs	-	-
Total written-down value of property, plant and equipment	468	77

	2025–26 $’000	2024–25 $’000
Other intangible produced assets*	33,412	34,753
Work in progress*	8,958	7,720
Total written-down value of intangible assets	42,370	42,473
_{* Capitalised and uncapitalised expenditure on e-Sys life extension project.}

	2025–26 $’000	2024–25 $’000
Prepayments	6,904	4,554
Right of use plant and equipment	-	258
Motor vehicle leased	296	339
Total other non-financial assets	7,200	5,151

	2025–26 $’000	2024–25 $’000
Current liabilities
Right of use lease liabilities	-	132
Motor vehicle leases	111	127
Total current liabilities	111	259
Non-current liabilities
Right of use lease liabilities	-	-
Motor vehicle leases	188	214
Total non-current liabilities	188	214
Total interest-bearing liabilities	299	473

	2025–26 $’000	2024–25 $’000
Current provisions
Annual leave	8,540	8,433
Long service leave	15,234	15,393
Other employee entitlements	5,317	5,256
Total current provisions	29,091	29,082
Non-current provisions
Long service leave	3,938	3,492
Total non-current provisions	3,938	3,492
Total provisions	33,029	32,574

Administered revenues	2025–26 $’000	2024–25 $’000
Payroll tax	10,791,372	10,265,590
COVID debt levy – payroll $10m+	1,348,939	1,259,244
Mental health and wellbeing surcharge	1,348,975	1,259,212
Duties*	13,034,186	11,466,072
Land tax	6,177,944	6,117,612
COVID debt levy – landholdings	1,149,109	1,131,781
Congestion levy	210,020	122,774
Growth areas infrastructure contribution	202,059	184,202
Windfall gains tax	52,867	14,837
Metropolitan planning levy	40,341	24,066
Emergency services and volunteers fund	1,523,552	1,030,588
Commercial passenger vehicle service levy	92,644	85,919
Short stay levy	92,631	19,104
Wagering and betting tax	365,709	353,343
Keno tax	17,427	12,407
Casino tax	189,574	176,977
Community benefit levy	10,081	9,605
Licence fees	-	(1)
Total	36,647,430	33,533,332
Less: cattle compensation fund	(1,975)	(6,188)
Less: swine compensation fund	(73)	(206)
Less: sheep and goat compensation fund	(829)	(4,355)
Add: unclaimed money receipts	135,657	238,865
Add: user charges	7,654	6,811
Add: sundry income	2,552	488
Total administered revenues	36,790,416	33,768,747
_{* Includes cattle compensation fund, swine compensation fund and sheep and goat compensation fund.}

Administered expenses	2025–26 $’000	2024–25 $’000
First Home Owner Grant	82,775	89,570
HomeBuilder Grant	1,203	3,767
Liquor subsidies	5,015	5,004
Other grants, rebates and other payments	33,119	73,111
Unclaimed money refunds	14,139	18,660
Bad and doubtful debts	68,072	74,694
Total administered expenses	204,323	264,806
Net administered revenues	36,586,093	33,503,941

Tax and duty revenue increased by $3,114 million to $36,647 million. This included:
- an increase of $526 million in payroll tax
- an increase of $90 million in COVID debt levy – payroll $10m+
- an increase of $90 million in mental health and wellbeing surcharge
- an increase of $1,523 million in land transfer duty
- an increase of $60 million in land tax and vacant residential land tax
- an increase of $17 million in COVID debt levy – landholdings
- an increase of $87 million in congestion levy
- an increase of $74 million in short stay levy
- an increase of $493 million in emergency services and volunteers fund.
Unclaimed money receipts represent monies transferred to the Registrar under the Unclaimed Money Act 2008 and the Gambling Regulation Act 2003. There was a decrease of $103 million in the 2025–26 financial year.
The First Home Owner Grant decreased by $7 million as a result of a reduction in applications compared to 2024-25.
Other grants, rebates and other payments decreased by $40 million mainly due to a decrease in ex gratia payments of $41 million.
The $7 million decrease in bad and doubtful debts includes an increase of $76 million in bad debts and a decrease of $83 million in the provision for doubtful debts.