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Financial Performance

Financial performance

Finance’s financial statements are presented in Part 5 of this report. The Australian National Audit Office issued an unqualified audit opinion for the financial statements on 27 August 2018.

A summary of Finance’s financial performance for departmental activities and activities administered on behalf of the Australian Government is provided below.

Departmental activities

Finance recorded an operating surplus of $126.9 million in 2017-18 (2016-17: $55.4 million). The result is mainly due to gains from sales and revaluations within the Commonwealth’s domestic property portfolio; and general insurance activities where there was an absence of large property claims. The outcome of these activities, which are subject to external factors and can significantly impact the operating result in any given year, is consistent with the Portfolio Additional Estimates Statements 2017-18.

ICT centralised procurement was transferred to the Digital Transformation Agency on 1 July 2017 resulting in corresponding decreases in supplier expenses and own-source revenue for this function.

Activities administered on behalf of the Australian Government

In 2017-18, Finance administered four programs on behalf of the Australian Government with expenses of $9.3 billion including:

  • $8.5 billion in member benefits for Commonwealth defined benefit superannuation schemes
  • $382.3 million relating to the investment funds, including distributions to portfolio special accounts
  • $452.1 million for ministerial and parliamentary services including entitlements, salaries for staff employed under the Members of Parliament (Staff) Act 1984, and COMCAR services.

Administered income of $2.2 billion includes superannuation contributions of $1.2 billion and interest and gains of $941.1 million from the investment funds.

At 30 June 2018, administered assets were $32.7 billion and contain investments in a wide range of securities, instruments and collective investment vehicles. Total assets increased 33.8 per cent from 2016-17, mainly due to government contributions.

Administered liabilities of $185 billion largely consist of member benefits for the Commonwealth defined benefit superannuation schemes. Superannuation liabilities increased 6.2 per cent from the prior year primarily as a result of changes to the discount rate used to value the liabilities.