Net worth
The State/local general government sector is estimated to have a positive net worth of 61.1 per cent of GDP in 2007-08. State/local net worth has increased in nominal terms each year since 1998-99, but has increased only marginally 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. There has been a consistent improvement in the net worth of the Australian Government general government sector since the late 1990s and net worth is projected to be positive by 2008-09, reflecting the contribution of continued budget surpluses and the expectation of higher average investment returns through the Future Fund.
Table 4: General government sector 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 (calculated using the share price for listed corporations). This is partly offset by defence weapons platforms no longer being recorded as assets.
- Estimates.
- Projections.
na Data not available.