Administered Finances

Administered Cash Flow

The Defence Administered net cost of service as at 30 June 2009 was $732.5m representing an underachievement of $236.2m compared to the revised estimate. Administered cash flows primarily relate to Military Superannuation and Defence Housing Australia dividends. Due to the nature of these activities the Administered net cost of service fluctuates year to year.

The variation primarily reflects:

Figure 2.2 Administered net cost of service (cash) five year trend
2004-05: 616, 2005-06: 703, 2006-07: 694, 2007-08: 686, 2008-09: 733.

Notes

  1. Net administered cost of services figures based on in-year dollars.
Table 2.3 Administered net cost of service (cash)
2008-09
Budget
Estimate
$'000
2008-09
Revised
Estimate[1]
$'000
2008-09
Actual
Result
$'000
2008-09
Variation

$'000
Cost of service
Military benefits 1,672,100 1,672,100 1,650,486 -21,614
Subsidies 52,638 50,868 30,556 -20,312
Grants 23,300 23,300 - -23,300
Other - - 97 97
Cash Used 1,748,038 1,746,268 1,681,139 -65,129
Cash received
Military superannuation contributions 731,000 731,569 866,674 135,105
Licence fees 4,711 4,711 2,874 -1,837
Interest 13 187 245 58
Dividends 60,448 41,100 69,031 27,931
Other 569 - 9,787 9,787
Cash received 796,741 777,567 948,611 171,044
Net cost of service 951,297 968,701 732,528 -236,173
Funded by
Appropriations
Cash from the Official Public Account for appropriations 1,748,038 1,748,038 1,681,302 -66,736
Cash transfer to the Official Public Account -796,741 -779,337 -948,774 -169,437
Cash holdings at the beginning of the reporting period - - - -
Total funding source 951,297 968,701 732,528 -236,173

Notes

  1. As published in the Portfolio Additional Estimates Statements 2008-09.

Administered Income and Expenses

As at 30 June 2009 Defence Administered Income was $917.2m representing a $139.6m variance to the revised estimate. This variance is primarily due to:

As at 30 June 2009 the Defence Administered expenses were $3,501.0m representing a $536.2m variance to the revised estimate. This variation primarily reflects:

Table 2.4 Administered income and expenses
2008-09
Budget
Estimate
$'000
2008-09
Revised
Estimate[1]
$'000
2008-09
Actual
Result
$'000
2008-09
Variation

$'000
Income administered on behalf of Government
Military Superannuation contributions 731,000 731,000 831,091 100,091
Dividends 60,448 41,100 72,723 31,623
Licence fees 4,711 4,711 2,874 -1,837
Interests 13 187 244 57
Other 569 569 9,549 8,980
Foreign exchange gains - - 671 671
Total income 796,741 777,567 917,152 139,585
Expenses administered on behalf of Government
Military superannuation benefits 2,848,700 2,848,700 3,429,000 580,300
Military retention benefits 42,000 42,000 36,720 -5,280
Defence home owner subsidies 52,638 50,868 35,302 -15,566
Grants 23,300 23,300 - -23,300
Other - - 9 9
Total expenses 2,966,638 2,964,868 3,501,031 536,163

Notes

  1. As published in the Portfolio Additional Estimates Statements 2008-09.