Statement 7: Asset and Liability Management

The Australian Government will improve its financial position by accumulating assets and limiting the growth in liabilities. This leaves the Government with the capacity and flexibility to absorb and respond to changes in economic circumstances as well as address longer‑term fiscal pressures. A detailed balance sheet for the Australian Government general government sector is provided in Statement 9.

The Government's net financial worth position is estimated to become positive in 2009‑10 and is projected to improve over the forward estimates period. The main drivers for this improvement are strong budget surpluses forecast over the forward estimates. The Government is taking a strategic approach to the allocation of these surpluses by investing most of the 2007‑08 and 2008‑09 Budget surpluses in three new nation building funds for education, health and infrastructure. These funds will address the nation's capital and infrastructure shortages, build the platforms for economic growth into the future, and help to build a modern nation.