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Australian Government Coat of Arms

Budget | 2015-16

Budget 2015-16
Australian Government Coat of Arms, Budget 2015-16

Statement 8 (continued)

Contingent liabilities and assets

Contingent liabilities and contingent assets of the Australian Government are listed below by portfolio. These contingent liabilities and assets are a specific category of fiscal risks. Broadly, they represent possible costs or gains to the Australian Government arising from past events or decisions which will be confirmed or otherwise by the outcome of future events that are not within the Government's control.

Contingencies reported in this statement include loan guarantees, non‑loan guarantees, warranties, indemnities, uncalled capital and letters of comfort, together with those contingencies considered remote. These contingencies are in addition to the liabilities and assets already recognised in the consolidated financial statements of the Australian Government general government sector in Statement 9.

In general, information on contingent liabilities and assets is based on information provided by Australian Government departments and entities and is current to 31 March 2015. In some cases, other dates are used and those are noted in the relevant section.

Table 2: Summary of contingent liabilities and contingent assets in the Statement of Risks since the 2013‑14 Budget, 2013 PEFO and the 2013‑14 MYEFO(a)
Significant but remote contingencies Status Category(b)(c)(d)
NBN Co Limited — Equity Agreement Modified Guarantee
Telstra Financial Guarantee Modified Guarantee
Termination of the funding agreement with OPEL Network Pty Ltd Modified Other
ADI Limited — Officers' and Directors' indemnities Unchanged Indemnity
Remote contingencies Modified Indemnity
Litigation cases Modified Other
Job Services Australia — Employment Pathway Fund Modified Other
Industry and Science    
Liability for damages caused by space activities Modified Other
Infrastructure and Regional Development    
Maritime Industry Finance Company Limited — Board Members' Indemnity Unchanged Indemnity
Moorebank Intermodal Company Limited — Board Members' Indemnity Modified Indemnity
Tripartite deeds relating to the sale of federal leased airports Modified Other
Financial Claims Scheme Modified Guarantee
Guarantee of State and Territory borrowing Modified Guarantee
Guarantee Scheme for Large Deposits and Wholesale funding Modified Guarantee
Guarantees under the Commonwealth Bank Sale Act 1995 Modified Guarantee
Reserve Bank of Australia — guarantee Modified Guarantee
Contingent liabilities — unquantifiable    
Compensation claims arising from suspension of livestock exports to Indonesia Unchanged Other
Compensation claims arising from equine influenza outbreak Unchanged Other
Emergency pest and disease response arrangements Unchanged Other
Native Title agreements — access to geospatial data Unchanged Indemnity
Australian Victims of Terrorism Overseas Payment Modified Other
Disaster Recovery Modified Other
Native Title costs Unchanged Other
NBN Co Limited — Board Members' Insolvency Indemnity Modified Indemnity
Cockatoo Island Dockyard Unchanged Indemnity
Land decontamination, site restoration and decommissioning of Defence assets Unchanged Other
Non‑remote contingent liabilities Unchanged Other
ASC Pty Ltd — Directors' indemnities Modified Indemnity
Commonwealth Superannuation Corporation — immunity and indemnity Unchanged Indemnity
Future Fund Management Agency and Future Fund Board of Guardians — indemnity Modified Indemnity
Googong Dam Unchanged Indemnity
Indemnities for the Reserve Bank of Australia and private sector banks Unchanged Indemnity
Indemnities relating to other former asset sales, privatisations and information technology outsourcing projects Modified Indemnity
Australian Government general insurance fund — Comcover Unchanged Other
Australian Government domestic property Modified Other
Foreign Affairs and Trade    
Export Finance and Insurance Corporation — board member and senior management indemnities Unchanged Indemnity
Australian Medical Association — Private Mental Health Alliance Unchanged Indemnity
Australian Red Cross Society — indemnities Unchanged Indemnity
Blood and blood products liability cover Unchanged Indemnity
CSL Ltd Unchanged Indemnity
Indemnities relating to vaccines Unchanged Indemnity
Medical Indemnity Exceptional Claims Scheme Unchanged Indemnity
New South Wales Health Administration Council — indemnity Unchanged Indemnity
Tobacco plain packaging litigation Unchanged Other
Termination of Medicare Local Deed for Funding Unchanged Other
Immigration and Border Protection    
Northern Patrol and Response — Triton Modified Indemnity
Southern Ocean Maritime Patrol and Response Programme Removed Indemnity
Immigration detention services by state and territory governments — liability limit Modified Indemnity
Immigration detention services contract — liability limit New Indemnity
Industry and Science    
Australian Nuclear Science and Technology Organisation — indemnity Unchanged Indemnity
British atomic test site at Maralinga Unchanged Indemnity
Gorgon liquefied natural gas and carbon dioxide storage project — long‑term liability Modified Indemnity
Snowy Hydro Limited — water releases Unchanged Indemnity
Liability for costs incurred in a national liquid fuel emergency Unchanged Other
Infrastructure and Regional Development    
Indemnity provided to the New South Wales Rural Fire Fighting Service in relation to the Jervis Bay Territory Unchanged Indemnity
Australian Maritime Safety Authority incident costs Unchanged Other
Service Delivery Arrangement Indemnities — Indian Ocean Territories Modified Indemnity
Social Services    
Business Services Wage Assessment Tool Modified Other
National Disability Insurance Scheme Modified Other
Terrorism insurance — commercial cover Unchanged Guarantee
Contingent assets — unquantifiable    
Non‑remote contingent assets Unchanged Other
Legal action seeking compensation from Sanofi Unchanged Other
Legal action seeking compensation from Wyeth Unchanged Other
Industry and Science    
Wireless Local Area Network Unchanged Other
Contingent liabilities — quantifiable    
Claims against the Department of Defence Unchanged Other
Indemnity provided to the Administrator and the Assistant Administrators of the Health Services Union Modified Indemnity
Low Carbon Australia Limited — Board of Directors' and senior management indemnities Unchanged Indemnity
Foreign Affairs and Trade    
Export Finance and Insurance Corporation Modified Guarantee
Australian Response to the outbreak of Ebola in West Africa Modified Indemnity
Infrastructure and Regional Development    
Commonwealth contribution to the East West Link project New Other
Social Services    
Accommodation Payment Guarantee Scheme Modified Guarantee
Australian Taxation Office — tax disputes Modified Other
International financial institutions — uncalled capital subscriptions Modified Other
International Monetary Fund Modified Other
Contingent assets — quantifiable    
Claims against the Department of Defence Unchanged Other
Foreign Affairs and Trade    
Export Finance and Insurance Corporation Removed Other

(a) Detailed descriptions of these items are in the following text.

(b) Guarantees — a guarantee is where one party promises to be responsible for the debt or performance obligations of another party should that party default in some way.

(c) Indemnities — an indemnity is a legally binding promise whereby a party undertakes to accept the risk of loss or damage another party may suffer.

(d) Other — contingent liabilities and assets which are not guarantees or indemnities.