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.
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 2012. 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 2011‑12 Budget and the 2011‑12 MYEFO(a)
| Contingent liabilities — quantifiable | |
|---|---|
| Broadband, Communications and the Digital Economy | |
| NBN Co Limited — Equity Agreement | Modified |
| Telstra Financial Guarantee | Modified |
| 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 |
| Health and Ageing | |
| Guarantee Scheme for aged care accommodation bonds | Modified |
| Immigration and Citizenship | |
| Education Services to Minors in Alternative Places of Detention(b) | Removed |
| Treasury | |
| Australian Taxation Office — tax disputes | Modified |
| International financial institutions — uncalled capital subscriptions | Modified |
| International Monetary Fund | Modified |
| Reserve Bank of Australia — guarantee | Modified |
| Contingent liabilities — unquantifiable | |
| Agriculture, Fisheries and Forestry | |
| National Environmental Biosecurity Response Agreement(c) | Removed |
| Compensation claims arising from suspension of livestock exports to Indonesia | New |
| Defence and Defence Materiel Organisation | |
| Indemnities and remote contingencies | Modified |
| Finance and Deregulation | |
| Comcover — insurance claims and reinsurance recoveries | Modified |
| Future Fund Management Agency and Future Fund Board of Guardians — indemnity | Modified |
| Litigation — Davis Samuel case | Modified |
| Superannuation(d) | Removed |
| Health and Ageing | |
| Legal proceedings against the Professional Services Review impacting on the validity of past Committees | New |
| Immigration and Citizenship | |
| Education Services to Minors in Alternative Places of Detention — South Australia | New |
| Regional Australia, Local Government, Arts and Sport | |
| National Aboriginal Islander Skills Dance College (NAISDA) — construction works(c) | Removed |
| Whole‑of‑Government — 2015 Asian Football Confederation (AFC) Asian Cup — Government Guarantees(e) | Removed |
| 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 |
| Contingent assets — unquantifiable | |
| Health and Ageing | |
| Legal action seeking compensation from Sanofi‑Aventis | New |
(a) 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 2011‑12, Statement 8 or in the Mid‑Year Economic and Fiscal Outlook 2011‑12, Appendix C.
(b) Memorandum of Understanding surrounding this item expired at the end of the 2011 school year.
(c) This item has fallen below the reporting threshold for the 2012‑13 Budget.
(d) This item is now disclosed under Comcover — insurance claims and reinsurance recoveries.
(e) The Government has made a decision in relation to this item and it is no longer classified as a contingent liability.
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