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Finance’s financial statements are presented in Part 5 of this report with the Australian National Audit Office issuing an unmodified audit opinion on 31 August 2021.
A summary of Finance’s financial performance for Departmental and Administered activities are provided below.
The Department manages a diverse range of activities that are delivered for whole-of-government purposes and supported through special accounts. These activities are subject to external factors that can significantly impact the operating result in any given year. The 2020–21 operating deficit of $98.8 million (2019–20: deficit $65.7 million) is primarily due to general insurance activities provided to Australian Government entities which were impacted by revised estimates in insurance expenses for prior year liability claims.
While the Department recognised an operating deficit in 2020–21 under the Statement of Comprehensive Income, the Statement of Financial Position remains strong. At 30 June 2021, the Department held net assets of $2.1 billion which largely comprised the Finance Owned Estate (approximately 70 non-Defence Commonwealth-owned properties in Australia). Total assets increased by $0.2 billion, which included an increase in cash for the Comcover special account of $0.4 billion received as an equity injection. Total liabilities increased by $0.4 billion for outstanding insurance claims to be paid.
Administered activities on behalf of the Australian Government
In 2020–21, Finance administered four programs on behalf of the Australian Government with expenses of $10.9 billion mainly including:
- $7.7 billion for Public Sector Superannuation including member benefits for Commonwealth defined benefit superannuation schemes
- $2.6 billion for the Australian Government Investment Funds including distributions to portfolio special accounts
- $0.5 billion 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 $5.0 billion comprises $3.8 billion of interest, dividends and distributions and gains from the Australian Government Investment Funds and $1.1 billion of superannuation contributions.
At 30 June 2021, administered assets were $53.5 billion which largely consists of the Australian Government Investment Funds and investments in Commonwealth entities and companies. Total assets increased $3.6 billion from 2019–20, mainly due to net government contributions to the Australian Government Investment Funds.
Administered liabilities of $230.3 billion largely consist of member benefits for the Commonwealth defined benefit superannuation schemes. Superannuation liabilities decreased by $15.3 billion from the previous year primarily as a result of changes to the discount rate used to value the liabilities.