Net worth
The state/local general government sector has an estimated positive net worth of 60 per cent of GDP in 2005-06. State/local net worth has increased in nominal terms each year. However, since 1999-2000, net worth has not always grown at the same pace as the economy and hence, has declined as a proportion of GDP. The Australian Government general government sector has historically recorded negative net worth. This difference primarily reflects the significant funding provided by the Australian Government to the states and to local government for capital works, with the resultant assets recorded in the balance sheets of the state and local governments.
Table 4: General government net worth by
level of government
(as at end of financial year)
- There is a break in the Australian Government net worth series between 1998-99 and 1999-2000. Data up to 1998-99 are sourced from the Commonwealth’s Consolidated Financial Statements based on Australian Accounting Standards. Data beginning in 1999-2000 are based on the Government Finance Statistics (GFS) framework. For the general government sector, the major change across the break in the series is an improvement in net worth. This is primarily due to the move from valuing investments in public corporations at historic cost to current market value (which is calculated using the share price for listed corporations). This is partly offset by defence weapons platforms no longer being recorded as assets.
e. Estimates.
p. Projections.
na Data not available.