Appendix D: Debt Transactions

The Commonwealth holds a stock of around $2.5 billion in loans advanced to the states. The states make interest payments and repayments to the Commonwealth in respect of these loans.

The Commonwealth advances the states loans under a range of agreements. These advances have often been over very long repayment periods (some in excess of 50 years), although the terms of each agreement vary considerably.

Most of the interest payments and repayments relate to housing and infrastructure. Payments are also made against loans under agreements for natural disasters, asbestos removal and other purposes administered by various Commonwealth agencies.

Total advances, interest and repayments from the states to the Commonwealth are shown in Table D.1.

Table D.1: Summary of advances, interest and repayments, by year and state

$'000	NSW	VIC	QLD	WA	SA	TAS	ACT	NT	Total
Outstanding loans as at 30 June 2014
Contingent Liabilities
Loan to NSW to assist beneficiaries of the Asbestos Injuries Compensation Fund	57,114	‑	‑	‑	‑	‑	‑	‑	57,114
Natural disaster relief	29,727	‑	88,900	‑	‑	‑	‑	‑	118,627
Environment
Northern Territory — water and sewerage assistance	‑	‑	‑	‑	‑	‑	‑	9,291	9,291
Housing
Commonwealth-State Housing Agreement loans	574,419	‑	163,896	154,695	43,983	80,227	‑	23,454	1,040,674
Housing for service personnel	29,533	‑	16,648	3,134	1,293	‑	‑		50,608
Other housing	‑	‑	‑	‑	‑	‑	96,111	53,315	149,426
Infrastructure
Railway projects	‑	‑	‑	1,251	‑	‑	‑	‑	1,251
Sewerage	9,045	‑	2,934	‑	2,253	‑	‑	‑	14,232
Other purposes
Australian Capital Territory debt repayments	‑	‑	‑	‑	‑	‑	5,093	‑	5,093
Loan Council — housing nominations	350,711	‑	125,820	215,076	151,707	92,811	‑	122,138	1,058,263
2014‑15
Advances
Asbestos removal in the ACT	‑	‑	‑	‑	‑	‑	750,000	‑	750,000
Contingent Liabilities
Loan to NSW to assist beneficiaries of the Asbestos Injuries Compensation Fund	12,500	‑	‑	‑	‑	‑	‑	‑	12,500
Natural disaster relief	7,037	‑	1,554	‑	‑	‑	‑	‑	8,591
Repayments
Asbestos removal in the ACT	‑	‑	‑	‑	‑	‑	‑	‑	‑
Contingent liabilities
Loan to NSW to assist beneficiaries of the Asbestos Injuries Compensation Fund	‑	‑	‑	‑	‑	‑	‑	‑	‑
Natural disaster relief	‑21	‑	‑8,233	‑	‑	‑	‑	‑	‑8,254
Environment
Northern Territory — water and sewerage assistance	‑	‑	‑	‑	‑	‑	‑	‑136	‑136
Housing
Commonwealth-State Housing Agreement loans	‑37,096	‑	‑9,920	‑9,424	‑2,463	‑5,028	‑	‑792	‑64,723
Housing for service personnel	‑1,503	‑	‑915	‑248	‑52	‑	‑	‑	‑2,718
Other housing	‑	‑	‑	‑	‑	‑	‑7,755	‑2,703	‑10,458
Infrastructure
Railway projects	‑	‑	‑	‑324	‑	‑	‑	‑	‑324
Sewerage	‑7,703	‑	‑1,919	‑	‑1,037	‑	‑	‑	‑10,659
Other purposes
Australian Capital Territory debt repayments	‑	‑	‑	‑	‑	‑	‑555	‑	‑555
Loan Council — housing nominations	‑8,581	‑	‑3,157	‑5,473	‑3,590	‑2,301	‑	‑2,856	‑25,958
Interest
Asbestos removal in the ACT	‑	‑	‑	‑	‑	‑	‑8,190	‑	‑8,190
Contingent liabilities
Loan to NSW to assist beneficiaries of the Asbestos Injuries Compensation Fund	‑2,324	‑	‑	‑	‑	‑	‑	‑	‑2,324
Natural disaster relief	‑628	‑	‑1,867	‑	‑	‑	‑	‑	‑2,495
Environment
Northern Territory — water and sewerage assistance	‑	‑	‑	‑	‑	‑	‑	‑555	‑555
Housing
Commonwealth-State Housing Agreement loans	‑33,794	‑	‑9,643	‑9,084	‑2,588	‑4,720	‑	‑1,381	‑61,210
Housing for service personnel	‑1,947	‑	‑1,087	‑200	‑88	‑	‑	‑	‑3,322
Other housing	‑	‑	‑	‑	‑	‑	‑6,969	‑2,918	‑9,887
Infrastructure
Railway projects	‑	‑	‑	‑76	‑	‑	‑	‑	‑76
Sewerage	‑573	‑	‑171	‑	‑189	‑	‑	‑	‑933
Other purposes
Australian Capital Territory debt repayments	‑	‑	‑	‑	‑	‑	‑627	‑	‑627
Loan Council — housing nominations	-20,720	-	-7,407	-12,661	-8,931	-5,464	-	-7,189	-62,372
Net Financial Flow	‑95,353	‑	‑42,765	‑37,490	‑18,938	‑17,513	725,904	‑18,530	495,315
2015‑16
Advances
Asbestos removal in the ACT	‑	‑	‑	‑	‑	‑	250,000	‑	250,000
Contingent Liabilities
Loan to NSW to assist beneficiaries of the Asbestos Injuries Compensation Fund	50,000	‑	‑	‑	‑	‑	‑	‑	50,000
Natural disaster relief	‑	‑	358	‑	‑	‑	‑	‑	358
Repayments
Asbestos removal in the ACT	‑	‑	‑	‑	‑	‑	‑	‑	‑
Contingent liabilities
Loan to NSW to assist beneficiaries of the Asbestos Injuries Compensation Fund	‑	‑	‑	‑	‑	‑	‑	‑	‑
Natural disaster relief	‑4,083	‑	‑17,286	‑	‑	‑	‑	‑	‑21,369
Environment
Northern Territory — water and sewerage assistance	‑	‑	‑	‑	‑	‑	‑	‑136	‑136
Housing
Commonwealth-State Housing Agreement loans	‑37,130	‑	‑9,955	‑9,543	‑2,596	‑5,052	‑	‑828	‑65,104
Housing for service personnel	‑1,595	‑	‑976	‑263	‑57	‑	‑	‑	‑2,891
Other housing	‑	‑	‑	‑	‑	‑	‑7,854	‑2,839	‑10,693
Infrastructure
Railway projects	‑	‑	‑	‑287	‑	‑	‑	‑	‑287
Sewerage	‑1,342	‑	‑963	‑	‑648	‑	‑	‑	‑2,953
Other purposes
Australian Capital Territory debt repayments	‑	‑	‑	‑	‑	‑	‑555	‑	‑555
Loan Council — housing nominations	‑8,967	‑	‑3,299	‑5,719	‑3,751	‑2,404	‑	‑2,985	‑27,125
Interest
Asbestos removal in the ACT	‑	‑	‑	‑	‑	‑	‑25,143	‑	‑25,143
Contingent liabilities
Loan to NSW to assist beneficiaries of the Asbestos Injuries Compensation Fund	‑4,522	‑	‑	‑	‑	‑	‑	‑	‑4,522
Natural disaster relief	‑628	‑	‑1,709	‑	‑	‑	‑	‑	‑2,337
Environment
Northern Territory — water and sewerage assistance	‑	‑	‑	‑	‑	‑	‑	‑548	‑548
Housing
Commonwealth-State Housing Agreement loans	‑31,943	‑	‑9,156	‑8,618	‑2,452	‑4,472	‑	‑1,345	‑57,986
Housing for service personnel	‑1,881	‑	‑1,047	‑189	‑86	‑	‑	‑	‑3,203
Other housing	‑	‑	‑	‑	‑	‑	‑6,620	‑2,781	‑9,401
Infrastructure
Railway projects	‑	‑	‑	‑58	‑	‑	‑	‑	‑58
Sewerage	‑97	‑	‑32	‑	‑91	‑	‑	‑	‑220
Other purposes
Australian Capital Territory debt repayments	‑	‑	‑	‑	‑	‑	‑558	‑	‑558
Loan Council — housing nominations	-20,366	-	-7,273	-12,429	-8,781	-5,366	-	-7,072	-61,287
Net Financial Flow	‑62,554	‑	‑51,338	‑37,106	‑18,462	‑17,294	209,270	‑18,534	3,982
2016‑17
Advances
Asbestos removal in the ACT	‑	‑	‑	‑	‑	‑	‑	‑	‑
Contingent Liabilities
Loan to NSW to assist beneficiaries of the Asbestos Injuries Compensation Fund	‑	‑	‑	‑	‑	‑	‑	‑	‑
Natural disaster relief	‑	‑	‑	‑	‑	‑	‑	‑	‑
Repayments
Asbestos removal in the ACT	‑	‑	‑	‑	‑	‑	‑	‑	‑
Contingent liabilities
Loan to NSW to assist beneficiaries of the Asbestos Injuries Compensation Fund	‑	‑	‑	‑	‑	‑	‑	‑	‑
Natural disaster relief	‑4,083	‑	‑11,397	‑	‑	‑	‑	‑	‑15,480
Environment
Northern Territory — water and sewerage assistance	‑	‑	‑	‑	‑	‑	‑	‑136	‑136
Housing
Commonwealth-State Housing Agreement loans	‑37,268	‑	‑10,033	‑9,596	‑2,736	‑5,105	‑	‑865	‑65,603
Housing for service personnel	‑1,697	‑	‑1,037	‑277	‑63	‑	‑	‑	‑3,074
Other housing	‑	‑	‑	‑	‑	‑	‑7,972	‑2,983	‑10,955
Infrastructure
Railway projects	‑	‑	‑	‑224	‑	‑	‑	‑	‑224
Sewerage	‑	‑	‑52	‑	‑340	‑	‑	‑	‑392
Other purposes
Australian Capital Territory debt repayments	‑	‑	‑	‑	‑	‑	‑555	‑	‑555
Loan Council — housing nominations	‑9,370	‑	‑3,447	‑5,976	‑3,920	‑2,512	‑	‑3,119	‑28,344
Interest
Asbestos removal in the ACT	‑	‑	‑	‑	‑	‑	‑25,351	‑	‑25,351
Contingent liabilities
Loan to NSW to assist beneficiaries of the Asbestos Injuries Compensation Fund	‑5,712	‑	‑	‑	‑	‑	‑	‑	‑5,712
Natural disaster relief	‑549	‑	‑1,377	‑	‑	‑	‑	‑	‑1,926
Environment
Northern Territory — water and sewerage assistance	‑	‑	‑	‑	‑	‑	‑	‑542	‑542
Housing
Commonwealth-State Housing Agreement loans	‑30,078	‑	‑8,665	‑8,142	‑2,309	‑4,222	‑	‑1,307	‑54,723
Housing for service personnel	‑1,810	‑	‑1,004	‑178	‑83	‑	‑	‑	‑3,075
Other housing	‑	‑	‑	‑	‑	‑	‑6,267	‑2,637	‑8,904
Infrastructure
Railway projects	‑	‑	‑	‑42	‑	‑	‑	‑	‑42
Sewerage	‑1	‑	‑	‑	‑38	‑	‑	‑	‑39
Other purposes
Australian Capital Territory debt repayments	‑	‑	‑	‑	‑	‑	‑488	‑	‑488
Loan Council — housing nominations	-19,992	-	-7,133	-12,184	-8,623	-5,264	-	-6,946	-60,142
Net Financial Flow	‑110,560	‑	‑44,145	‑36,619	‑18,112	‑17,103	‑40,633	‑18,535	‑285,707
2017‑18
Advances
Asbestos removal in the ACT	‑	‑	‑	‑	‑	‑	‑	‑	‑
Contingent Liabilities
Loan to NSW to assist beneficiaries of the Asbestos Injuries Compensation Fund	‑	‑	‑	‑	‑	‑	‑	‑	‑
Natural disaster relief	‑	‑	‑	‑	‑	‑	‑	‑	‑
Repayments
Asbestos removal in the ACT	‑	‑	‑	‑	‑	‑	‑50,000	‑	‑50,000
Contingent liabilities
Loan to NSW to assist beneficiaries of the Asbestos Injuries Compensation Fund	‑	‑	‑	‑	‑	‑	‑	‑	‑
Natural disaster relief	‑4,083	‑	‑11,397	‑	‑	‑	‑	‑	‑15,480
Environment
Northern Territory — water and sewerage assistance	‑	‑	‑	‑	‑	‑	‑	‑136	‑136
Housing
Commonwealth-State Housing Agreement loans	‑37,531	‑	‑10,109	‑9,737	‑2,883	‑5,151	‑	‑904	‑66,315
Housing for service personnel	‑1,813	‑	‑1,089	‑287	‑69	‑	‑	‑	‑3,258
Other housing	‑	‑	‑	‑	‑	‑	‑8,131	‑3,135	‑11,266
Infrastructure
Railway projects	‑	‑	‑	‑161	‑	‑	‑	‑	‑161
Sewerage	‑	‑	‑	‑	‑168	‑	‑	‑	‑168
Other purposes
Australian Capital Territory debt repayments	‑	‑	‑	‑	‑	‑	‑555	‑	‑555
Loan Council — housing nominations	‑9,792	‑	‑3,602	‑6,246	‑4,096	‑2,626	‑	‑3,260	‑29,622
Interest
Asbestos removal in the ACT	‑	‑	‑	‑	‑	‑	‑25,351	‑	‑25,351
Contingent liabilities
Loan to NSW to assist beneficiaries of the Asbestos Injuries Compensation Fund	‑6,004	‑	‑	‑	‑	‑	‑	‑	‑6,004
Natural disaster relief	‑470	‑	‑1,158	‑	‑	‑	‑	‑	‑1,628
Environment
Northern Territory — water and sewerage assistance	‑	‑	‑	‑	‑	‑	‑	‑535	‑535
Housing
Commonwealth-State Housing Agreement loans	‑28,189	‑	‑8,166	‑7,660	‑2,158	‑3,966	‑	‑1,268	‑51,407
Housing for service personnel	‑1,735	‑	‑958	‑166	‑80	‑	‑	‑	‑2,939
Other housing	‑	‑	‑	‑	‑	‑	‑5,908	‑2,486	‑8,394
Infrastructure
Railway projects	‑	‑	‑	‑29	‑	‑	‑	‑	‑29
Sewerage	‑	‑	‑	‑	‑14	‑	‑	‑	‑14
Other purposes
Australian Capital Territory debt repayments	‑	‑	‑	‑	‑	‑	‑418	‑	‑418
Loan Council — housing nominations	-19,595	-	-6,984	-11,925	-8,456	-5,156	-	-6,813	-58,929
Net Financial Flow	‑109,212	‑	‑43,463	‑36,211	‑17,924	‑16,899	‑90,363	‑18,537	‑332,609
2018-19
Advances
Asbestos removal in the ACT	‑	‑	‑	‑	‑	‑	‑	‑	‑
Contingent Liabilities
Loan to NSW to assist beneficiaries of the Asbestos Injuries Compensation Fund	‑	‑	‑	‑	‑	‑	‑	‑	‑
Natural disaster relief	‑	‑	‑	‑	‑	‑	‑	‑	‑
Repayments
Asbestos removal in the ACT	‑	‑	‑	‑	‑	‑	‑50,000	‑	‑50,000
Contingent liabilities
Loan to NSW to assist beneficiaries of the Asbestos Injuries Compensation Fund	‑11,565	‑	‑	‑	‑	‑	‑	‑	‑11,565
Natural disaster relief	‑4,083	‑	‑10,815	‑	‑	‑	‑	‑	‑14,898
Environment
Northern Territory — water and sewerage assistance	‑	‑	‑	‑	‑	‑	‑	‑136	‑136
Housing
Commonwealth-State Housing Agreement loans	‑37,608	‑	‑10,245	‑9,850	‑3,038	‑5,172	‑	‑945	‑66,858
Housing for service personnel	‑1,892	‑	‑1,139	‑295	‑77	‑	‑	‑	‑3,403
Other housing	‑	‑	‑	‑	‑	‑	‑8,222	‑3,293	‑11,515
Infrastructure
Railway projects	‑	‑	‑	‑92	‑	‑	‑	‑	‑92
Sewerage	‑	‑	‑	‑	‑60	‑	‑	‑	‑60
Other purposes
Australian Capital Territory debt repayments	‑	‑	‑	‑	‑	‑	‑555	‑	‑555
Loan Council — housing nominations	‑10,232	‑	‑3,765	‑6,527	‑4,281	‑2,744	‑	‑3,406	‑30,955
Interest
Asbestos removal in the ACT	‑	‑	‑	‑	‑	‑	‑24,083	‑	‑24,083
Contingent liabilities
Loan to NSW to assist beneficiaries of the Asbestos Injuries Compensation Fund	‑6,310	‑	‑	‑	‑	‑	‑	‑	‑6,310
Natural disaster relief	‑392	‑	‑939	‑	‑	‑	‑	‑	‑1,331
Environment
Northern Territory — water and sewerage	‑	‑	‑	‑	‑	‑	‑	‑528	‑528
Housing
Commonwealth-State Housing Agreement loans	‑26,271	‑	‑7,658	‑7,166	‑1,997	‑3,698	‑	‑1,225	‑48,015
Housing for service personnel	‑1,654	‑	‑910	‑153	‑77	‑	‑	‑	‑2,794
Other housing	‑	‑	‑	‑	‑	‑	‑5,542	‑2,327	‑7,869
Infrastructure
Railway projects	‑	‑	‑	‑19	‑	‑	‑	‑	‑19
Sewerage	‑	‑	‑	‑	‑3	‑	‑	‑	‑3
Other purposes
Australian Capital Territory debt repayments	‑	‑	‑	‑	‑	‑	‑348	‑	‑348
Loan Council — housing nominations	-19,175	-	-6,826	-11,650	-8,279	-5,047	-	-6,673	-57,650
Net Financial Flow	‑119,182	‑	‑42,297	‑35,752	‑17,812	‑16,661	‑88,750	‑18,533	‑338,987