Reserve Bank of Australia Annual Report – 2008 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 Reserve where they remain available to absorb future valuation losses or are realised when relevant assets are sold. Unrealised losses are, in the first instance, absorbed within the Unrealised Profits Reserve; if such losses exceed the balances in this reserve, the amount by which the losses exceed the balances is charged against other sources of income.

	2008 $M	2007 $M
Opening balance	1,085	1,477
Distribution to Australian Government	(1,085)	(1,477)
Transfer from Statement of Distribution	1,403	1,085
As at 30 June	1,403	1,085

An amount of $1,085 million from earnings in 2006/07 was paid to the Australian Government in August 2007. Earnings available for distribution of $1,403 million from 2007/08 will be distributed in August 2008.