Appendix C: Statement of Risks (continued)

Fiscal Risks

Fiscal risks comprise general developments or specific events that may affect the fiscal outlook. Some developments or events raise the possibility of a fiscal impact. In other cases, the likelihood of a fiscal impact may be reasonably certain, but will not be included in the forward estimates because the timing or magnitude is not known.

Defence

Major overseas operations of the Australian Defence Force in the Middle East in 2014‑15

The estimates for the Department of Defence include the cost of major overseas operations of the Australian Defence Force in the Middle East in 2014‑15. Funding is considered on a year‑by‑year basis and the forward estimates do not provide for extensions of currently approved operations beyond 2014‑15. This is consistent with past practice. Funding for Operation Okra has been agreed to 30 June 2015 and funding for Operation Accordion, originally agreed until 31 December 2014, has been extended to 30 June 2015. The Department of Defence will likely have additional funding requirements for Middle East operations beyond 30 June 2015.

Treasury

Standby loan facility to the Government of Indonesia

Since 19 July 2013, Australia has made up to A$1 billion available to the Government of Indonesia in the form of a standby loan facility, to be drawn down should Indonesia be unable to raise sufficient funds at reasonable interest rates on global capital markets due to the impact of financial market volatility. Contributions to the standby loan facility have also been provided by the World Bank, the Asian Development Bank and the Government of Japan. Australia's contribution to the facility is available to Indonesia up to 31 December 2014. A drawdown from the facility will be dependent on a request from the Government of Indonesia and subject to certain criteria being met. Any funds provided will be repaid in full with interest.