Statement 8 (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.
Contingencies reported in this statement include loan guarantees, non‑loan guarantees, warranties, indemnities, uncalled capital and letters of comfort, together with those contingencies considered remote. These contingencies are in addition to the liabilities and assets already recognised in the consolidated financial statements of the Australian Government general government sector in Statement 9.
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 2015. In some cases, other dates are used and those are noted in the relevant section.
| Significant but remote contingencies | Status | Category(b)(c)(d) |
|---|---|---|
| Communications | ||
| NBN Co Limited — Equity Agreement | Modified | Guarantee |
| Telstra Financial Guarantee | Modified | Guarantee |
| Termination of the funding agreement with OPEL Network Pty Ltd | Modified | Other |
| Defence | ||
| ADI Limited — Officers' and Directors' indemnities | Unchanged | Indemnity |
| Remote contingencies | Modified | Indemnity |
| Litigation cases | Modified | Other |
| Employment | ||
| Job Services Australia — Employment Pathway Fund | Modified | Other |
| Industry and Science | ||
| Liability for damages caused by space activities | Modified | Other |
| Infrastructure and Regional Development | ||
| Maritime Industry Finance Company Limited — Board Members' Indemnity | Unchanged | Indemnity |
| Moorebank Intermodal Company Limited — Board Members' Indemnity | Modified | Indemnity |
| Tripartite deeds relating to the sale of federal leased airports | Modified | Other |
| Treasury | ||
| Financial Claims Scheme | Modified | Guarantee |
| Guarantee of State and Territory borrowing | Modified | Guarantee |
| Guarantee Scheme for Large Deposits and Wholesale funding | Modified | Guarantee |
| Guarantees under the Commonwealth Bank Sale Act 1995 | Modified | Guarantee |
| Reserve Bank of Australia — guarantee | Modified | Guarantee |
| Contingent liabilities — unquantifiable | ||
| Agriculture | ||
| Compensation claims arising from suspension of livestock exports to Indonesia | Unchanged | Other |
| Compensation claims arising from equine influenza outbreak | Unchanged | Other |
| Emergency pest and disease response arrangements | Unchanged | Other |
| Attorney‑General's | ||
| Native Title agreements — access to geospatial data | Unchanged | Indemnity |
| Australian Victims of Terrorism Overseas Payment | Modified | Other |
| Disaster Recovery | Modified | Other |
| Native Title costs | Unchanged | Other |
| Communications | ||
| NBN Co Limited — Board Members' Insolvency Indemnity | Modified | Indemnity |
| Defence | ||
| Cockatoo Island Dockyard | Unchanged | Indemnity |
| Land decontamination, site restoration and decommissioning of Defence assets | Unchanged | Other |
| Non‑remote contingent liabilities | Unchanged | Other |
| Finance | ||
| ASC Pty Ltd — Directors' indemnities | Modified | Indemnity |
| Commonwealth Superannuation Corporation — immunity and indemnity | Unchanged | Indemnity |
| Future Fund Management Agency and Future Fund Board of Guardians — indemnity | Modified | Indemnity |
| Googong Dam | Unchanged | Indemnity |
| Indemnities for the Reserve Bank of Australia and private sector banks | Unchanged | Indemnity |
| Indemnities relating to other former asset sales, privatisations and information technology outsourcing projects | Modified | Indemnity |
| Australian Government general insurance fund — Comcover | Unchanged | Other |
| Australian Government domestic property | Modified | Other |
| Foreign Affairs and Trade | ||
| Export Finance and Insurance Corporation — board member and senior management indemnities | Unchanged | Indemnity |
| Health | ||
| Australian Medical Association — Private Mental Health Alliance | Unchanged | Indemnity |
| Australian Red Cross Society — indemnities | Unchanged | Indemnity |
| Blood and blood products liability cover | Unchanged | Indemnity |
| CSL Ltd | Unchanged | Indemnity |
| Indemnities relating to vaccines | Unchanged | Indemnity |
| Medical Indemnity Exceptional Claims Scheme | Unchanged | Indemnity |
| New South Wales Health Administration Council — indemnity | Unchanged | Indemnity |
| Tobacco plain packaging litigation | Unchanged | Other |
| Termination of Medicare Local Deed for Funding | Unchanged | Other |
| Immigration and Border Protection | ||
| Northern Patrol and Response — Triton | Modified | Indemnity |
| Southern Ocean Maritime Patrol and Response Programme | Removed | Indemnity |
| Immigration detention services by state and territory governments — liability limit | Modified | Indemnity |
| Immigration detention services contract — liability limit | New | Indemnity |
| Industry and Science | ||
| Australian Nuclear Science and Technology Organisation — indemnity | Unchanged | Indemnity |
| British atomic test site at Maralinga | Unchanged | Indemnity |
| Gorgon liquefied natural gas and carbon dioxide storage project — long‑term liability | Modified | Indemnity |
| Snowy Hydro Limited — water releases | Unchanged | Indemnity |
| Liability for costs incurred in a national liquid fuel emergency | Unchanged | Other |
| Infrastructure and Regional Development | ||
| Indemnity provided to the New South Wales Rural Fire Fighting Service in relation to the Jervis Bay Territory | Unchanged | Indemnity |
| Australian Maritime Safety Authority incident costs | Unchanged | Other |
| Service Delivery Arrangement Indemnities — Indian Ocean Territories | Modified | Indemnity |
| Social Services | ||
| Business Services Wage Assessment Tool | Modified | Other |
| National Disability Insurance Scheme | Modified | Other |
| Treasury | ||
| Terrorism insurance — commercial cover | Unchanged | Guarantee |
| Contingent assets — unquantifiable | ||
| Defence | ||
| Non‑remote contingent assets | Unchanged | Other |
| Health | ||
| Legal action seeking compensation from Sanofi | Unchanged | Other |
| Legal action seeking compensation from Wyeth | Unchanged | Other |
| Industry and Science | ||
| Wireless Local Area Network | Unchanged | Other |
| Contingent liabilities — quantifiable | ||
| Defence | ||
| Claims against the Department of Defence | Unchanged | Other |
| Employment | ||
| Indemnity provided to the Administrator and the Assistant Administrators of the Health Services Union | Modified | Indemnity |
| Environment | ||
| Low Carbon Australia Limited — Board of Directors' and senior management indemnities | Unchanged | Indemnity |
| Foreign Affairs and Trade | ||
| Export Finance and Insurance Corporation | Modified | Guarantee |
| Australian Response to the outbreak of Ebola in West Africa | Modified | Indemnity |
| Infrastructure and Regional Development | ||
| Commonwealth contribution to the East West Link project | New | Other |
| Social Services | ||
| Accommodation Payment Guarantee Scheme | Modified | Guarantee |
| Treasury | ||
| Australian Taxation Office — tax disputes | Modified | Other |
| International financial institutions — uncalled capital subscriptions | Modified | Other |
| International Monetary Fund | Modified | Other |
| Contingent assets — quantifiable | ||
| Defence | ||
| Claims against the Department of Defence | Unchanged | Other |
| Foreign Affairs and Trade | ||
| Export Finance and Insurance Corporation | Removed | Other |
(a) Detailed descriptions of these items are in the following text.
(b) Guarantees — a guarantee is where one party promises to be responsible for the debt or performance obligations of another party should that party default in some way.
(c) Indemnities — an indemnity is a legally binding promise whereby a party undertakes to accept the risk of loss or damage another party may suffer.
(d) Other — contingent liabilities and assets which are not guarantees or indemnities.