Reserve Bank of Australia Annual Report – 2004 Financial Statements Note 3 – Distribution Payable to Australian Government

Section 30 of the Reserve Bank Act 1959 requires that the net profits of the Reserve Bank of Australia, less amounts set aside for contingencies or placed in the RBRF as determined by the Treasurer in consultation with the Board, be paid to the Australian Government (refer Note 1(i)).

2004 $M 2003 $M
Opening balance 2,264 1,889
Distribution to Australian Government (1,300) (1,889)
Transfer from Statement of Distribution 694 2,264
As at 30 June 1,658 2,264

Of the $2,264 million payable to the Australian Government out of profits for 2002/03, $1,300 million was paid in August 2003 and $964 million was paid in August 2004. The Treasurer has again decided, in consultation with the Board, that earnings available for distribution of $694 million from 2003/04 will also be distributed in two tranches – $374 million in August 2004; and $320 million in the 2005/06 financial year. Accordingly, $1,338 million of the balance of the distribution payable account as at 30 June 2004 was distributed to the Australian Government in August 2004, and $320 million will be paid in 2005/06.