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.
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 2016. 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 and the Arts | |||
| NBN Co Limited — Equity Agreement | Modified | Guarantee | |
| Optus financial guarantee | Modified | Guarantee | |
| Telstra Financial Guarantee | Modified | Guarantee | |
| Termination of the funding agreement with OPEL Network Pty Ltd | Unchanged | Other | |
| Defence | |||
| ADI Limited — Officers' and Directors' indemnities | Unchanged | Indemnity | |
| Remote contingencies | Modified | Indemnity | |
| Litigation cases | Unchanged | Other | |
| Employment | |||
| jobactive — Employment Fund | Removed | Other | |
| Industry, Innovation and Science | |||
| Liability for damages caused by space activities | Unchanged | Other | |
| Infrastructure and Regional Development | |||
| Maritime Industry Finance Company Limited — Board Members' Indemnity | Unchanged | Indemnity | |
| Moorebank Intermodal Company Limited — Board Members' Indemnity | Unchanged | Indemnity | |
| Moorebank Intermodal Company Limited — Glenfield Waste Site Easement | New | Indemnity | |
| Moorebank Intermodal Company Limited — Termination of the Equity Funding Agreement | New | Indemnity | |
| Tripartite deeds relating to the sale of federal leased airports | Unchanged | Other | |
| Treasury | |||
| Financial Claims Scheme | Modified | Guarantee | |
| Guarantee of State and Territory Borrowing | Modified | Guarantee | |
| Guarantees under the Commonwealth Bank Sale Act 1995 | Modified | Guarantee | |
| Reserve Bank of Australia — guarantee | Modified | Guarantee | |
| Contingent liabilities — unquantifiable | |||
| Agriculture and Water Resources | |||
| Compensation claims arising from suspension of livestock exports to Indonesia | Modified | Other | |
| Compensation claims arising from equine influenza outbreak | Modified | Other | |
| Emergency pest and disease response arrangements and funding | Modified | Other | |
| Attorney‑General's | |||
| Native Title agreements — access to geospatial data | Removed | Indemnity | |
| Australian Victims of Terrorism Overseas Payment | Modified | Other | |
| Disaster Recovery | Unchanged | Other | |
| Native Title costs | Unchanged | Other | |
| Communications and the Arts | |||
| NBN Co Limited — Board Members' Insolvency Indemnity | Modified | Indemnity | |
| Defence | |||
| Cockatoo Island Dockyard | Unchanged | Indemnity | |
| Land decontamination, site restoration and decommissioning of Defence assets | Modified | Other | |
| Non‑remote contingent liabilities | Modified | Other | |
| Finance | |||
| ASC Pty Ltd — Directors' indemnities | Unchanged | Indemnity | |
| Commonwealth Superannuation Corporation — immunity and indemnity | Unchanged | Indemnity | |
| Future Fund Management Agency and Future Fund Board of Guardians — indemnity | Unchanged | 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 | Unchanged | Indemnity | |
| Australian Government general insurance fund — Comcover | Modified | Other | |
| Australian Government domestic property | Modified | Other | |
| Health | |||
| Australian Medical Association — Private Mental Health Alliance | Unchanged | Indemnity | |
| Australian Red Cross Society — indemnities | Modified | 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 | |
| Immigration and Border Protection | |||
| Immigration detention services by State and Territory governments — liability limit | Modified | Indemnity | |
| Immigration detention services contract — liability limit | Unchanged | Indemnity | |
| Garrison and welfare services at Regional Processing Countries contract — liability limit | Modified | Indemnity | |
| Industry, Innovation and Science | |||
| Australian Nuclear Science and Technology Organisation — indemnity | Modified | Indemnity | |
| British atomic test site at Maralinga | Unchanged | Indemnity | |
| Gorgon liquefied natural gas and carbon dioxide storage project — long‑term liability | Unchanged | 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 Service in relation to the Jervis Bay Territory | Unchanged | Indemnity | |
| Aviation Rescue & Fire Fighting potential Polyfluorinated Chemical Contamination | Modified | Other | |
| Australian Maritime Safety Authority incident costs | Unchanged | Other | |
| Service Delivery Arrangement Indemnities — External 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 | Modified | Other | |
| Legal action seeking compensation from Wyeth | Modified | Other | |
| Industry, Innovation and Science | |||
| Wireless Local Area Network | Modified | 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 | Unchanged | 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 | |
| Health | |||
| Accommodation Payment Guarantee Scheme | Modified | Guarantee | |
| Infrastructure and Regional Development | |||
| Australian Government contribution to the East West Link project | Unchanged | Other | |
| Virgin Australia Airlines Pty Ltd Confidentiality and Non‑Disclosure Agreement | Unchanged | Indemnity | |
| 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 by the Department of Defence | Unchanged | 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.