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Part 5: Other Information

Agency financial performance

The AOFM recorded an operating surplus on agency activities of $0.6 million for the 2020–21 financial year, comprising total revenue of $16.8 million and expenses of $16.2 million. The surplus was due to lower than anticipated operating costs.

The AOFM reported a sound net worth and liquidity position at 30 June 2021, with net assets of $27.2 million, represented by total assets of $35.8 million and total liabilities of $8.6 million.

At 30 June 2021, the AOFM had unspent appropriations totalling $29.3million. Of this, $0.7 million was repealed on 1 July 2021. Unspent appropriations are available to settle liabilities as and when they fall due and for future asset replacements and improvements.

Agency resource statement and resources for outcomes

Outcome 1: The advancement of macroeconomic growth and stability and effective operation of financial markets, through issuing debt, investing in financial assets and managing debt, investments and cash for the Australian Government


Actual Expenses








Program1.1: Australian Office of Financial Management

Departmental expenses

Departmental appropriation and other receipts




Expenses not requiring appropriation in the Budget year




Administered expenses before re-measurements

Expenses not requiring appropriation (b)




Special appropriations expenses

Commonwealth Inscribed Stock Act 1911




Australian Business Securitisation Fund Act 2019




Structured Finance Support (Coronavirus Economic Response Package) Act 2020

(Coronavirus Economic Response Package) Act 2020




Financial Agreement Act 1994




Total expenses for program1.1








Average staffing level (number)




(a) The Budget figure for 2020-21 is the estimated actual 2020-21 expenses as reported in table 2.1 of the 2021-22 Portfolio Budget Statements.

(b) Expenses not requiring appropriation represents expected credit loss expenses on investments in structured finance securities.

Please note: in the Budget papers the item is reported against expenses, whilst in the Annual Financial Statements it is reported as an offset to interest revenue.

Table 13: AOFM Resource statement

  Actual available appropriation 2020-21 $'000 Net Payments made 2020-21 $'000 Appropriations extinguished 2020-21 $'000 = Balance 2020-21 $'000
Ordinary annual services
Departmental appropriation(a)(b) 45,366 15,127 1,036   29,203
Receipts from other sources (s74)(c) 134 - -   134
Total departmental 45,500 15,127 1,036   29,337
Administered expenses
Total administered - - -   -
Total ordinary annual services 45,500 15,127 1,036   29,337
Other services
Departmental non-operating - - -   -
Total other services - - -   -
Total available annual appropriations (A+B) 45,500 15,127 1,036   29,337
Special appropriations - operating
Commonwealth Inscribed Stock Act 1911 21,718,633 21,718,633 -   -
Financial Agreement Act 1994 7 7 -   -
Public Governance, Performance and Accountability Act 2013 3 3 -   -
Subtotal 21,718,643 21,718,643 -   -
Special appropriations - investing and financing
Commonwealth Inscribed Stock Act 1911 172,658,451 172,658,451 -   -
Public Governance, Performance and Accountability Act 2013 535,000,000 535,000,000 -   -
Subtotal 707,658,451 707,658,451 -   -
Total special appropriations 729,377,094 729,377,094 -   -
Total appropriations excluding special accounts
(A + B + C) 729,422,594 729,392,221 1,036   29,337
Special Accounts
Debt Retirement Reserve Trust 47 23 -   24
Structured Finance Support Fund (d) 13,316,015 10,530 -   13,305,485
Australian Business Securitisation Fund (e) 485,314 86,814 -   398,500
Total Special Account 13,801,376 97,367 -   13,704,009
Total net resourcing and payments for AOFM
(A + B + C + D) 743,223,970 729,489,588 1,036   13,733,346

(a) Actual available appropriation comprises Supply Act (No.1) 2020-21 and Appropriation Act (No.1) 2020-‍21 plus carried forward appropriation balances at 1 July 2020.

(b) Includes capital budget appropriation for 2020-21 of $0.366 million.

(c) Receipts received under section 74 of the Public Governance, Performance and Accountability Act 2013

(d) Structured Finance Support Fund Special Account was established in March 2020.

The special account received its statutory funding of $15 billion on 25 March 2020.

(e) Australian Business Securitisation Fund Special Account was established in April 2019.

The special account received its first credit of funding of $250 million on 1 July 2019.

The special account received its second credit of funding of $250 million on 1 July 2020.

Grant programs

Under the Financial Agreement Act 1994, the Commonwealth is required to contribute to the Debt Retirement Reserve Trust Account to assist the New South Wales and Victorian governments to redeem maturing debt on allocation to them. Monies standing to the credit of this Account are held for the purposes prescribed by the Financial Agreement Act 1994.

Total amounts paid by the Commonwealth into the Debt Retirement Reserve Trust Account for 2020-21 were $605.

Advertising and market research

The AOFM incurred expenditure of $5,509 in advertising to promote the Australian Government Securities market to investors.

The AOFM incurred expenditure of $31,965.08 during 2020-21 to media advertising organisations for staff recruitment.


Table 14: Remuneration

Key Management Personnel


Short term benefits


Other long-term benefits

Termination benefits


Base salary and annual leave


Other benefits


Long service leave


Termination benefits












Rob Nicholl








The CEO’s remuneration conditions are established by the Secretary to the Treasury. AOFM does not have any SES staff other than Key Management Personnel.

Table 14: Remuneration (continued)


Short term benefits


Other long-term benefits

Termination benefits


Average base salary and annual leave

Average bonuses

Average other benefits

Average superannuation

Average long service leave

Average other

Average termination benefits

Average total

Remuneration Band










255,000 to 279,999








280,000 to 304,999








305,000 to 329,999








330,000 to 354,999








380,000 to 404,999








Highly Paid Staff

Remuneration for Other Highly Paid Staff is established by the AOFM’s Enterprise Bargaining Agreement.

Freedom of information

Entities subject to the Freedom of Information Act 1982(FOI Act) are required to publish information to the public as part of the Information Publication Scheme (IPS). This requirement is in Part II of the FOI Act, replacing the former requirement to publish a section 8 statement in an annual report. Each agency must display on its website a plan showing what information it publishes in accordance with the IPS requirements. In 2020‑21, the AOFM worked with the Treasury on one FOI request, that was later withdrawn.

An agency plan showing what information is published in accordance with the IPS requirements, including material relevant to the AOFM, is accessible from the AOFM’s website at….

Ecologically sustainable development

The AOFM’s operations have an impact on the environment typical of office operations. Facilities management services are provided to the AOFM by the Treasury under a Memorandum of Understanding. Information on the environmental impact of these services is published in the Treasury’s Annual Report.

Management structure of the AOFM’s debt and assets

The assets and liabilities managed by the AOFM and held on its administered balance sheet in 2020‑21 were AGS (Treasury Bonds, TIBs and Treasury Notes), cash deposits with the RBA, investments made through the Australian Business Securitisation Fund (ABSF) and Structured Finance Support Fund (SFSF), and loans to the States under various Commonwealth‑State Housing Agreements.

For financial and risk management purposes, these assets and liabilities are allocated into different portfolios: long‑term debt; cash management; and investments for policy purposes. This allocation recognises the different objectives, risks and management approaches required in each area.

The long‑term debt portfolio includes all Treasury Bonds and TIBs.

The cash management portfolio includes Treasury Notes and assets held to manage within‑year variability in the Australian Government’s financing requirements. This portfolio is used to fund differences in timing of government payments and receipts, as well as providing contingency liquidity.

The investments for policy purposes portfolio includes all receivables arising from policy programs including the ABSF, SFSF and housing advances portfolio.

  • The ABSF is a fund created to support provision of finance to small to medium enterprises (SMEs) on more competitive terms.
  • The SFSF comprises investments in structured finance markets used by smaller lenders that provide consumer and business finance, investing in rated term securitisations and securitisation warehouses.
  • The housing advances portfolio comprises loans for public housing made to the states and territories. These loans, not evidenced by the issue of securities, were made under previous Commonwealth‑state financing arrangements. The last of these loans is due to mature on 30 June 2042.