Net financial worth, net worth and net debt
Net financial worth increased from ‑$39.7 billion in 2006‑07 to ‑$17.8 billion at the end of 2007‑08. This increase was $8.1 billion greater than estimated at the 2008‑09 Budget. This change since the budget largely reflects a reduction in the superannuation liability owing to a difference in the estimated and actual discount rate at 30 June and a higher than anticipated underlying cash surplus outcome; which was partially offset by the concessional loans variation mentioned previously (further details can be found in Part 2).
Net worth increased from $46.7 billion in 2006‑07 to $71.2 billion at the end of 2007‑08. This increase was $10.3 billion greater than estimated at the 2008‑09 Budget. In addition to the changes in net financial worth since Budget, outlined above, the change in net worth since Budget largely reflects an increase in value of the Government's land and buildings.
Over 2007‑08, the level of Australian Government net debt improved to reach ‑$42.9 billion by 30 June 2008. The improvement in net debt during 2007‑08 was $0.3 billion greater than estimated at the 2008‑09 Budget, largely reflecting the higher than anticipated underlying cash surplus outcome, partially offset by the concessional loans variation mentioned previously.
Table 7: Australian Government general government sector net financial worth,
net worth, net debt and net interest payments
- Net financial worth equals total financial assets minus total liabilities. That is, it excludes non‑financial assets.
- Net debt equals the sum of deposits held, advances received, government securities, loans and other borrowing, minus the sum of cash and deposits, advances paid and investments, loans and placements.
- Net debt includes the impact of the Future Fund rebalancing its portfolio allocation by increasing its holding of equities, which are not included in the calculation of net debt.