Reserve Bank of Australia Annual Report – 2006 Financial Statements Note 3

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 after consultation with the Board, shall be paid to the Australian Government (see Note 1(f)). Also under Section 30, unrealised profits are not available for distribution and are transferred to the unrealised profits reserves where they are available to absorb future valuation losses or are realised when relevant assets are sold.

	2006 $M		2005 $M
Opening balance	1,683		1,658
Distribution to Australian Government	(1,383)		(1,338)
Transfer from Statement of Distribution	1,177		1,363
As at 30 June	1,477		1,683

Of the $1,363 million payable to the Australian Government out of profits in 2004/05, $1,063 million was paid in August 2005, and $300 million will be paid in August 2006. Earnings available for distribution of $1,177 million from 2005/06 will also be distributed in August 2006. Accordingly, all of the balance of $1,477 million of the distribution payable account as at 30 June 2006 will be distributed to the Australian Government in August 2006.