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Australian Government - Department of Foreign Affairs and Trade

Advancing the interests of Australia and Australians internationally

Australian Government - Department of Foreign Affairs and Trade

Advancing the interests of Australia and Australians internationally

Note 19: Liabilities Administered on Behalf of Government

PAYABLES
2012
2011
$’000
$’000
Note 19A: Suppliers
Trade creditors and accruals
1,209
329
Other
33
3
Total suppliers
1,242
332
Supplier payables expected to be settled within 12 months:
Related entities
-
-
External parties
1,242
332
Total suppliers
1,242
332
Settlement was usually made within 30 days.
Note 19B: Other Payables
NIA*
10,689
21,061
Unearned Income - passports revenue
8,749
10,844
Defined Benefits Pension Schemes - NAPS
33,327
28,753
Defined Benefits Pension Schemes - Other
6,945
3,989
Total other payables
59,710
64,647
Total other payables are expected to be settled in:
No more than 12 months
11,345
16,422
More than 12 months
48,365
48,225
Total other payables
59,710
64,647
* Loans on the National Interest Account (NIA) are funded from the Commercial Account at fair value. The amount disclosed above reflects the Commonwealth's exposure on business undertaken in the NIA. It reflects the net amount of assets in the form of loans and rescheduled credit insurance debts to overseas governments, commitment fees on loans received by EFIC but not yet paid to the Commonwealth, unamortised portion of the reinsurance payments and bond premiums receivable from exporters and liabilities relating to the reimbursement to EFIC for debt forgiveness on loans, provision for unearned income on loan premiums, accrued expenses including EFIC administration fees and other creditors.
Defined Benefit Pension Schemes
2012
2011
$’000
$’000
The amounts recognised in the Balance Sheet are as follows:
Present value of funded obligations
31,020
26,903
Fair value of plan assets
(24,075)
(22,914)
6,945
3,989
Present value of unfunded obligations
33,327
28,753
Net liability in balance sheet
40,272
32,742
Movements in the net liability recognised in the Balance Sheet as follows:
Net liability at the start of the year
32,742
40,333
Exchange differences on foreign plans
1,538
(7,134)
Net expense recognised in the income statement
2,852
2,445
Net actuarial losses (gains)
6,155
(28)
Contributions
(991)
(712)
Transfer of benefit
(2,024)
(2,162)
Net liability at the end of the year
40,272
32,742
The amounts recognised in the Income Statement are as follows:
Current service cost
1,552
1,150
Interest on obligation
3,034
2,833
Expected return on plan assets
(1,733)
(1,538)
Past service cost
-
Losses (gains) on curtailments and settlements
-
Total included in 'employee benefit expense account'
2,853
2,445
Amounts recognised directly in administered equity
Financial year ended
2012
$'000
2011
$'000
Actuarial Gains (Losses)
(6,155)
28
Cummulative amounts of gains and losses recognised in administered equity
Financial year ended
2012
$'000
2011
$'000
Actuarial Gains (Losses)
(16,717)
(10,562)
Scheme Assets
The fair value of scheme assets is represented by:
Financial year ended
2012
2011
UK equities
0.0%
31.9%
Overseas equities
0.0%
39.6%
Long dated UK corporate bonds
15.6%
15.8%
Long dates UK Gilts
10.1%
8.3%
Cash
0.3%
0.1%
Insured Pensioner
2.0%
1.9%
Investment in LIC India
2.6%
2.4%
Diversified Growth Fund
69.4%
0.0%
Fair Value of scheme assets
The fair value of scheme assets does not include amounts relating to:
  • any of the Department's (and the Australian Government's) own financial instruments; and
  • any property occupied by, or other assets used by the Department (or the Australian Government)
Expected return on schemes assets
The expected return on assets assumptions is determined by weighting the expected long-term return of each asset class by the targeted allocation of assets to each asset class and allowing for the correlation of the investment returns between asset classes. The returns used for each class are net of investment tax and investment fees.
Actual return on scheme assets
Financial year ended
2012
$'000
2011
$'000
Actual return on scheme assets
984
2,870
Actual return on scheme assets as a percentage
4%
13%
Principal actuarial assumptions at the reporting date (expressed as weighted averages):
Financial year ended
2012
2011
Discount rate at 30 June
4.25%
5.27%
Expected return on assets at 30 June
3.07%
7.54%
Salary growth
3.12%
3.60%
Price inflation
2.97%
3.24%
Pension growth
1.09%
2.80%
Historical Information
Financial year ended
2012
$'000
2011
$'000
2010
$'000
2009
$'000
2008
$'000
Present value of defined benefit obligations
(64,347)
(55,656)
(64,981)
(60,950)
(56,221)
Fair value of scheme assets
24,075
22,914
24,648
21,484
26,210
Surplus / (deficit) in the scheme
(40,272)
(32,742)
(40,333)
(39,466)
(30,011)
Experience adjustments gain / (loss) - Net liabilities
(6,155)
28
(3,414)
(4,629)
76
Expected Employer Contributions
Financial year ended
2013
$'000
2012
$'000
Expected employer contributions1
902
631
1 This represents the employer contributions, which are paid into the schemes fund
Scheme Information
The Department administers on behalf of the Australian Government, defined benefit pension schemes for locally engaged staff at posts in London and New Delhi, and also the North American Pension Scheme. All schemes, with the exception of the New Delhi Gratuity Scheme, have been closed to new employees and provide pensions that are linked to final salaries. Figures disclosed are based on formal actuarial reviews that are generally conducted triennially and reviewed and updated by the actuary on an annual basis. The New Delhi scheme is fully funded, the London scheme is partially funded and the North American Pension Scheme is fully unfunded. Contributions for the North American Scheme are made to the Department of Finance and Deregulation, which will provide funding for benefits payable under the scheme.

Department of Foreign Affairs and Trade