Chapter Four > Capital Receipts

Capital Receipts (-$4.6m)

The capital receipts program comprises proceeds from property sales which are returned to the Government in the form of equity, and proceeds from the sale of housing annuities by the Defence Housing Authority, sale of specialist military equipment and commercial vehicles, and other plant and equipment items which are retained by Defence.

Net capital receipts for 2003-04 totalled $101.9m or $4.6m less than the projected result. Details are shown in Table 4.9 with an explanation of the variations for each category shown below.

Table 4.9 Defence Capital Receipts 2003-04
  2003-04
  Budget
Estimate		 Revised Estimate Projected Result Actual Result Variance
Capital Receipts $m $m $m $m $m
Proceeds from the Sale of Land and Buildings 199.9 199.9 199.9 82.4 -117.5
Less: Capital withdrawal (DoFA requirements) -199.9 -199.9 -199.9 -82.4 117.5
Proceeds retained by Defence - - - - -
Revenue from sale of housing - - - 44.0 44.0
Proceeds from sale of Specialist Military Equipment 23.5 23.5 25.3 12.2 -13.1
Proceeds from sales of other property, plant and other equipment 83.0 83.0 81.2 45.7 -35.5
Net Capital Receipts 106.5 106.5 106.5 101.9 -4.6

Property Sales (-$117.5m)

In 2003-04, Defence sold property worth $82.4m, which was $117.5m below the projected result of $199.9m. This was primarily due to Government decisions, the need to refer works at Randwick to the Public Works Committee, and variations in project scheduling for various reasons including the lead time required to consider local and state government priority sale proposals. As agreed, all funds from the Defence Property Sales Program were returned to the Department of Finance and Administration as a capital withdrawal.

Sale of Defence Housing and Annuity (+$44m)

Defence received $44m from the sale of housing annuities by the Defence Housing Authority in 2003-04.

Sale of Specialist Military Equipment (-$13.1m)

Defence realised $12.2m from the sale of specialist military equipment, $13.1m less than the projected result. This was due to foreign exchange movements and an overestimate of the original estimate.

Sale of Other Property, Plant and Equipment (-$35.5m)

Receipts from the sale of other property, plant and equipment totalled $45.7m in 2003-04, which was $35.5m less than the projected result. This was due to an overestimate of the original budget.
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