Net capital investment
Total net capital investment for 2006-07 was $2.2 billion, which is $183 million higher than estimated in the 2007-08 Budget. This reflects an increase of $826 million due to an accounting reclassification of the purchase of C-17 Heavy Airlift aircraft from expenses to net capital investment as these aircraft can be used for non-military purposes. This was partly offset by a reclassification of defence weapon inventories from net capital investment to expenses of $367 million, reflecting an improvement in identifying the military versus non-military components of inventory holdings.
This increase in net capital investment was partly offset by delays in a number of capital projects including $79 million for the relocation and refurbishment of various overseas missions for the Department of Foreign Affairs and Trade.
Table 4: Australian Government general government sector net capital investment
- The Defence function includes a change in accounting treatment for C-17 Heavy Airlift aircraft as they can be used for non-military purposes, which results in a reclassification from expenses to net capital investment. This is partly offset by a reclassification of defence weapon inventories from net capital investment to expenses.