Defence Annual Report 2004-05 :: Chapter Two

Chapter Two - Capital Budget > Capital Receipts

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Capital Receipts (+$13.7m)

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 specialised military equipment and commercial vehicles, and other plant and equipment items which are retained by Defence, under the Section 31 Agreement.

Net capital receipts for 2004-05 totalled $105.7m or $13.7m more than the revised estimate. Details are shown in Table 2.7 with an explanation of the variations for each category shown below.

Table 2.7 Defence Capital Receipts 2004-05
	2004-05
	Budget Estimate	Revised Estimate	Actual Result	Variance
Category	$m	$m	$m	$m
Gross Proceeds from the Sale of Land and Buildings	164.5	140.0	107.0	-33.0
Less: Capital withdrawal (Government requirement)	-139.0	-114.5	-95.3	19.2
Proceeds retained by Defence from sale of Land and Buildings	25.5	25.5	11.7	-13.8
Revenue from sale of housing	-	-	35.5	35.5
Proceeds from sale of Specialist Military Equipment	5.8	5.8	10.3	4.5
Proceeds from sales of other property, plant and other equipment	60.7	60.7	48.2	-12.5
Net Capital Receipts	92.0	92.0	105.7	13.7

Property Sales (-$33.0m)

In 2004-05, Defence received $107.0m from the sale of property, which was $33.0m below the revised estimate of $140.0m outlined in the Portfolio Additional Estimates Statements 2004-05. This was due to a number of factors including the lead time required to consider state government priority sales proposals for properties at Maribyrnong and Fremantle. Net proceeds of $95.3m were returned to the Government.

Sale of Defence Housing and Annuity (+$35.5m)

Defence received $35.0m from the sale of housing annuities by the Defence Housing Authority in 2004-05.

Sale of Specialist Military Equipment (+$4.5m)

Defence realised $10.3m from the sale of specialist military equipment, $4.5m more than the revised estimate. This was due to foreign exchange movements and higher sales than expected.

Sale of Other Property, Plant and Equipment (-$12.5m)

Receipts from the sale of other property, plant and equipment totalled $48.2m in 2004-05, which was $12.5m less than the revised estimate. This was due to an overestimate of the original budget.