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Budget 2012-2013 Budget Paper No.3 The Budget



Budget 2012-2013 Budget Paper No.3 The Budget

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Tabled paper 1785


Tabled Papers for 11th Assembly 2008 - 2012; Tabled Papers; ParliamentNT




Tabled By Delia Lawrie


Made available by the Legislative Assembly of the Northern Territory under Standing Order 240. Where copyright subsists with a third party it remains with the original owner and permission may be required to reuse the material.




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64 Central Holding Authority Performance The significant increase in the headline operating surplus in 2012-13 compared to 2011-12 is largely the result of the movement in the bond rate used in valuing the Territorys superannuation liability between years, as a result of current fluctuating financial markets. Without these revaluation based changes the underlying surplus is around $300million in both years. The revaluation-based loss in 2011-12 is $315million and compares to a revaluation-based gain of $105 million in 2012-13. This difference is due to the different bond rates used to value the Territorys superannuation liability at particular points in time (4.25 per cent in 2011-12 and 5percent in 2012-13). When the bond rate effect is removed, the underlying operating surplus of around $300million in both years is as a result of a significant portion of Commonwealth tied funding recorded as revenue, being used for capital purposes, with the associated expenditure being recorded in the Cash Flow Statement rather than the Operating Statement. Other significant offsetting variations include: a greater proportion of NP revenue being used for capital spending in 2011-12 than in 2012-13 predominantly related to Remote Indigenous Housing and the last stages of the Nation Building and Jobs Plan stimulus package; offset by an increase in GST in 2012-13 of $210 million, albeit from a reduced base in 2011-12 due to an anticipated growth in the GST pool and the increase in the Territorys GST relativity. Despite this projected increase, GST levels for both years remain significantly lower than those predicted in the 2011-12 Budget and in forecasts made prior to the global financial crisis.