Reserve Bank of Australia Annual Report – 2009 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 balance in this reserve, the amount by which the losses exceed this balance is charged against other sources of income.

	2009 $M		2008 $M
Opening balance	1,403		1,085
Distribution to Australian Government	(1,403)		(1,085)
Transfer from Statement of Distribution	5,977		1,403
As at 30 June	5,977		1,403

An amount of $1,403 million from earnings in 2007/08 was paid to the Australian Government in August 2008. A dividend of $5,977 million from 2008/09, representing earnings available for distribution of $6,554 million less a transfer of $577 million to the RBRF, will be distributed to the Australian Government: $5,227 million will be paid in August 2009; and the balance of $750 million will be paid in August 2010.