Statement 8: Statement of Risks (Continued)
Contingent liabilities and assets
Contingent liabilities and contingent assets of the Australian Government are listed below by portfolio. These contingent liabilities and assets are a specific category of fiscal risks. Broadly, they represent possible costs or gains to the Australian Government arising from past events or decisions which will be confirmed or otherwise by the outcome of future events that are not within the Government's control.
Contingent liabilities include loan guarantees, non‑loan guarantees, warranties, indemnities, uncalled capital and letters of comfort. These possible costs are in addition to those recognised as liabilities in the consolidated financial statements of the Australian Government general government sector.
Contingent liabilities, contingent assets and other fiscal risks with a possible impact on the forward estimates greater than $20 million in any one year, or $50 million over the forward estimates period, are listed in this statement. Information on contingent liabilities and contingent assets is also provided in the annual financial statements of departments and non‑budget entities.
In general, information on contingent liabilities and assets is based on information provided by Australian Government departments and entities and is current to 31 March 2011. In some cases, other dates are used and those are noted in the relevant section.
Table 1: Summary of material changes to contingent liabilities and contingent assets in the Statement of Risks since the 2010‑11 Budget and the 2010‑11 MYEFO(a)
| Contingent liabilities — quantifiable | |
|---|---|
| Defence and Defence Materiel Organisation | |
| Indemnities and remote contingencies | Modified |
| Finance and Deregulation | |
| Sale of Sydney Airports Corporation Limited | Modified |
| Foreign Affairs and Trade | |
| Export Finance and Insurance Corporation | Modified |
| Treasury | |
| Guarantees under the Commonwealth Bank Sale Act 1995 | Modified |
| International financial institutions — uncalled capital subscriptions | Modified |
| International Monetary Fund | Modified |
| Reserve Bank of Australia — guarantee | Modified |
| Standby loan facility for the Government of Indonesia(b) | Removed |
| Contingent liabilities — unquantifiable | Agriculture, Fisheries and Forestry |
| Emergency animal disease response agreement and emergency plant pest response deed | New |
| Exceptional circumstances assistance for drought‑affected farmers(c) | Removed |
| Litigation(c) | Removed |
| National environmental biosecurity response agreement | New |
| Attorney‑General's | |
| Financial assistance for victims of overseas terrorist acts | New |
| Native Title costs | Modified |
| Broadband, Communications and the Digital Economy | |
| Extended zones(d) | Removed |
| Termination of the Funding Agreement with OPEL | New |
| Defence and Defence Materiel Organisation | |
| Indemnities and remote contingencies | Modified |
| Litigation cases | Modified |
| Finance and Deregulation | |
| Australian Reward Investment Alliance — immunity and indemnity | Modified |
| Comcover — insurance claims | Modified |
| Health and Ageing | |
| Guarantee Scheme for aged care accommodation bonds | Modified |
| Immigration and Citizenship | |
| Immigration detention services — liability limits | Modified |
| Innovation, Industry, Science and Research | |
| Liability for damages caused by Kistler space activities(e) | Removed |
| Prime Minister and Cabinet | |
| National Aboriginal Islander Skills Dance College (NAISDA) — construction works | Modified |
| Whole‑of‑Government — 2015 Asian Football Confederation (AFC) Asian Cup — Government Guarantees | Modified |
| Whole‑of‑Government — Australia's bids for the Federation Internationale de Football Association (FIFA) World Cup in 2018 or 2022 — Government Guarantees(f) | Removed |
| Whole‑of‑Government — Australian Government support for the Queensland Government bid to host the 2018 Commonwealth Games on the Gold Coast — Government Guarantees | New |
| Sustainability, Environment, Water, Population and Communities | |
| Murray‑Darling Basin Reform — risk assignment | Modified |
| Treasury | |
| Financial Claims Scheme | Modified |
| Guarantee of State and Territory borrowing | Modified |
| Guarantee scheme for Large Deposits and Wholesale Funding | Modified |
- Risks appearing in this Statement but not listed in the table above are substantially unchanged since disclosed in Budget Paper No. 1, Budget Strategy and Outlook 2010‑11, Statement 8 or in the Mid‑Year Economic and Fiscal Outlook 2010‑11, Appendix C.
- The facility reached its conclusion on 31 December 2010.
- These items have fallen below the reporting threshold for the 2011‑12 Budget.
- The Government has made a decision in relation to this item and it is no longer classified as a contingent liability.
- The relevant entity has ceased operations.
- Australia's bid was unsuccessful.
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