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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 20: Liabilities Administered on Behalf of Government

Note 20A. Suppliers    
Trade creditors and accruals 12,540 3,893
Other 19 68
Total suppliers 12,559 3,961
Suppliers are expected to be recovered in:    
    No more than 12 months 12,559 3,961
    More than 12 Months  -  -
Total suppliers 12,559 3,961
All trade creditors are entities that are external to the Australian Government. Settlement is usually made net 30 days. 'Other' relates to amounts owed to DFAT Departmental accounts.    
Note 20B. Other Payables    
National Interest Account (EFIC) * 42,908 46,679
Unearned income - passports revenue 9,160 9,481
Unearned income - Sponsorship 1,621 1,485
GST Payable to the ATO 278  -
Defined Benefit Pension Schemes - NAPS 34,735 35,359
Defined Benefit Pension Schemes - Other 5,598 4,107
Total other payables 94,300 97,111
Total other payables are expected to be settled in:    
    No more than 12 months 19,146 19,146
    More than 12 months 75,154 77,965
Total other payables 94,300 97,111

* Loans on the 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 portions 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    
The amounts recognised in the Balance Sheet are as follows:    
Present value of funded obligations 30,246 25,591
Fair value of plan assets (24,648) (21,484)
  5,598 4,107
Present value of unfunded obligations 34,735 35,359
Net liability in balance sheet 40,333 39,466
Movements in the net liability recognised in the Balance Sheet as follows:    
Net liability at the start of the year 39,466 30,011
Exchange differences on foreign plans (2,604) 5,237
Net expense recognised in the income statement 2,904 2,866
Net actuarial losses (gains) 3,414 4,629
Contributions (580) (864)
Transfer of benefit (2,267) (2,413)
Net liability at the end of the year 40,333 39,466
The amounts recognised in the Income Statement are as follows:    
Current service cost 928 1,199
Interest on obligation 3,378 3,674
Expected return on plan assets (1,369) (2,007)
Losses (gains) on curtailments and settlements (33)  -
Total included in 'employee benefit expense account' 2,904 2,866
Actual return on assets 6,534 (8,502)
Principal actuarial assumptions at the reporting date (expressed as weighted averages):    
Discount rate at 30 June 5.41% 6.29%
Expected return on assets at 30 June 3.51% 7.56%
Salary growth 3.46% 3.31%
Price inflation 3.12% 3.00%
Pension growth 3.00% 3.00%

The Department administers on behalf of the Australian Government, defined benefit pension schemes for locally engaged staff at posts in London, Dublin and New Delhi, and also the North American Pension Scheme. All schemes, with the exception of the New Delhi Gratuity Fund, 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.  Actuarial gains are applied directly to retained surplus as directed by Section 17.4 Finance Minister's Orders 2009-10.  The London, Dublin and New Delhi schemes are all funded schemes, the North American Pension Scheme is unfunded.  Contributions for the North American Scheme are made to the Department of Finance and Deregulation, which will provide funding for the scheme. The Dublin scheme was wound-up on 30 June 2010.

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Department of Foreign Affairs and Trade