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Appendix D: Debt Transactions

The Commonwealth holds a stock of around $3.7 billion in loans advanced to the States. The States make interest payments and repayments to the Commonwealth in respect of these loans.

The Commonwealth advances the States loans under a range of agreements. These advances have often been over very long repayment periods (some in excess of 50 years), although the terms of each agreement vary considerably.

Most of the interest payments and repayments relate to housing and infrastructure. Payments are also made against loans under agreements for natural disasters, asbestos removal and other purposes administered by various Commonwealth agencies.

Total advances, repayments and interest from the States to the Commonwealth are shown in Table D.1.

Table D.1: Summary of advances, repayments and interest, by year and State
$'000 NSW VIC QLD WA SA TAS ACT NT Total
Outstanding loans as at 30 June 2015                  
Agriculture                  
Drought Concessional Loans Scheme 100,000 30,000 99,428 10,000 10,000 - - 10,000 259,428
Drought Recovery Loans Scheme 30,000 - 30,000 - - - - - 60,000
Farm Finance Concessional Loans Scheme 53,508 43,675 56,469 20,068 10,450 19,873 - 16,059 220,102
National Water Infrastructure Loan Facility - - - - - - - - .
Asbestos removal in the Australian Capital Territory - - - - - - 732,365 - 732,365
Contingent Liabilities                  
Loan to New South Wales to assist beneficiaries of the Asbestos Injuries Compensation Fund 44,234 - - - - - - - 44,234
Natural disaster relief 30,541 - 90,051 - - - - - 120,592
Environment                  
Northern Territory — water and sewerage assistance - - - - - - - 9,182 9,182
Housing                  
Commonwealth-State Housing Agreement loans 542,949 - 155,628 146,724 41,684 76,016 - 22,852 985,853
Housing for service personnel 29,533 - 16,648 3,134 1,293 - - - 50,608
Other housing - - - - - - 96,111 51,038 147,149
Infrastructure                  
Sewerage 1,342 - 1,015 - 1,216 - - - 3,573
Other purposes                  
Australian Capital Territory debt repayments - - - - - - 5,094 - 5,094
Loan Council — housing nominations 344,719 - 123,561 211,146 149,171 91,168 - 120,125 1,039,890
2015‑16                  
Advances                  
Agriculture                  
Drought Concessional Loans Scheme 40,000 30,000 40,000 10,000 10,000 10,000 - 10,000 150,000
Drought Recovery Loans Scheme 56,250 - 33,750 - 10,000 - - - 100,000
Farm Finance Concessional Loans Scheme - - - - - - - - -
National Water Infrastructure Loan Facility - - - - - - - - -
Asbestos removal in the Australian Capital Territory - - - - - - 250,000 - 250,000
Contingent liabilities                  
Loan to New South Wales to assist beneficiaries of the Asbestos Injuries Compensation Fund 15,000 - - - - - - - 15,000
Natural disaster relief 1,554 - 42 - - - - - 1,596
Repayments                  
Agriculture                  
Drought Concessional Loans Scheme -27,064 -9,107 -16,769 -7,858 -7,908 - - -10,000 -78,706
Drought Recovery Loans Scheme -19,113 - -26,742 - - - - - -45,855
Farm Finance Concessional Loans Scheme -10,003 -13,188 -10,662 -5,283 -10,000 -5,165 - -8,519 -62,820
National Water Infrastructure Loan Facility - - - - - - - - -
Asbestos removal in the Australia Capital Territory - - - - - - - - -
Contingent liabilities                  
Loan to New South Wales to assist beneficiaries of the Asbestors Injuries Compensation Fund - - - - - - - - -
Natural disaster relief -4,083 - -17,286 - - - - - -21,369
Environment                  
Northern Territory — water and sewerage assistance - - - - - - - -136 -136
Housing                  
Commonwealth-State Housing Agreement loans -37,130 - -9,955 -9,543 -2,596 -5,052 - -828 -65,104
Housing for service personnel -1,595 - -976 -263 -57 - - - -2,891
Other housing - - - - - - -7,854 -2,839 -10,693
Infrastructure                  
Sewerage -1,342 - -963 - -648 - - - -2,953
Other purposes                  
Australian Capital Territory debt repayments - - - - - - -555 - -555
Loan Council — housing nominations -8,967 - -3,299 -5,719 -3,751 -2,404 - -2,985 -27,125
Interest                  
Agriculture                  
Drought Concessional Loans Scheme -3,445 -1,552 -3,741 -370 -369 -305 - -305 -10,087
Drought Recovery Loans Scheme -1,787 - -974 - -271 - - - -3,032
Farm Finance Concessional Loans Scheme -1,544 -1,082 -1,626 -525 -16 -522 - -268 -5,583
National Water Infrastructure Loan Facility - - - - - - - - -
Asbestos removal in the Australian Capital Territory - - - - - - -26,787 - -26,787
Contingent liabilities                  
Loan to New South Wales to assist beneficiaries of the Asbestos Injuries Compensation Fund -2,455 - - - - - - - -2,455
Natural disaster relief -451 - -1,325 - - - - - -1,776
Environment                  
Northern Territory — water and sewerage assistance - - - - - - - -548 -548
Housing                  
Commonwealth-State Housing Agreement loans -31,943 - -9,156 -8,636 -2,452 -4,472 - -1,345 -58,004
Housing for service personnel -1,881 - -1,047 -189 -86 - - - -3,203
Other housing - - - - - - -6,620 -2,781 -9,401
Infrastructure                  
Sewerage -97 - -32 - -91 - - - -220
Other purposes                  
Australian Capital Territory debt repayments - - - - - - -558 - -558
Loan Council — housing nominations -20,268 - -7,273 -12,429 -8,781 -5,366 - -7,072 -61,189
Net Financial Flow -60,364 5,071 -38,034 -40,815 -17,026 -13,286 207,626 -27,626 15,546
2016‑17                  
Advances                  
Agriculture                  
Drought Concessional Loans Scheme 96,250 29,000 96,250 9,500 9,500 - - 9,500 250,000
Drought Recovery Loans Scheme - - - - - - - - -
Farm Finance Concessional Loans Scheme - - - - - - - - -
National Water Infrastructure Loan Facility ~ ~ ~ ~ ~ ~ ~ ~ 50,000
Asbestos removal in the Australian Capital Territory - - - - - - - - -
Contingent liabilities                  
Loan to New South Wales to assist beneficiaries of the Asbestos Injuries Compensation Fund 60,000 - - - - - - - 60,000
Natural disaster relief - - 534 - - - - - 534
Repayments                  
Agriculture                  
Drought Concessional Loans Scheme - - - - - - - - -
Drought Recovery Loans Scheme - - - - - - - - -
Farm Finance Concessional Loans Scheme - - - - - - - - -
National Water Infrastructure Loan Facility - - - - - - - - -
Asbestos removal in the Australia Capital Territory - - - - - - - - -
Contingent liabilities                  
Loan to New South Wales to assist beneficiaries of the Asbestors Injuries Compensation Fund - - - - - - - - -
Natural disaster relief -4,083 - -12,276 - - - - - -16,359
Environment                  
Northern Territory — water and sewerage assistance - - - - - - - -136 -136
Housing                  
Commonwealth-State Housing Agreement loans -37,268 - -10,033 -9,596 -2,736 -5,105 - -865 -65,603
Housing for service personnel -1,697 - -1,037 -277 -63 - - - -3,074
Other housing - - - - - - -7,972 -2,983 -10,955
Infrastructure                  
Sewerage - - -52 - -340 - - - -392
Other purposes                  
Australian Capital Territory debt repayments - - - - - - -555 - -555
Loan Council — housing nominations -9,370 - -3,447 -5,976 -3,920 -2,512 - -3,119 -28,344
Interest                  
Agriculture                  
Drought Concessional Loans Scheme -5,691 -2,229 -5,987 -592 -591 -305 - -527 -15,922
Drought Recovery Loans Scheme -1,787 - -974 - -271 - - - -3,032
Farm Finance Concessional Loans Scheme -1,544 -1,082 -1,626 -525 -16 -522 - -268 -5,583
National Water Infrastructure Loan Facility ~ ~ ~ ~ ~ ~ ~ ~ -1,065
Asbestos removal in the Australian Capital Territory - - - - - - -27,076 - -27,076
Contingent liabilities                  
Loan to New South Wales to assist beneficiaries of the Asbestos Injuries Compensation Fund -5,075 - - - - - - - -5,075
Natural disaster relief -395 - -1,087 - - - - - -1,482
Environment                  
Northern Territory — water and sewerage assistance - - - - - - - -542 -542
Housing                  
Commonwealth-State Housing Agreement loans -30,078 - -8,665 -8,161 -2,309 -4,222 - -1,307 -54,742
Housing for service personnel -1,810 - -1,004 -178 -83 - - - -3,075
Other housing - - - - - - -6,267 -2,637 -8,904
Infrastructure                  
Sewerage -1 - - - -38 - - - -39
Other purposes                  
Australian Capital Territory debt repayments - - - - - - -488 - -488
Loan Council — housing nominations -19,888 - -7,133 -12,184 -8,623 -5,264 - -6,946 -60,038
Net Financial Flow 37,563 25,689 43,463 -27,989 -9,490 -17,930 -42,358 -9,830 48,053
2017‑18                  
Advances                  
Agriculture                  
Drought Concessional Loans Scheme 96,250 29,000 96,250 9,500 9,500 - - 9,500 250,000
Drought Recovery Loans Scheme - - - - - - - - -
Farm Finance Concessional Loans Scheme - - - - - - - - -
National Water Infrastructure Loan Facility ~ ~ ~ ~ ~ ~ ~ ~ 50,000
Asbestos removal in the Australian Capital Territory - - - - - - - - -
Contingent liabilities                  
Loan to New South Wales to assist beneficiaries of the Asbestos Injuries Compensation Fund 25,000 - - - - - - - 25,000
Natural disaster relief - - - - - - - - -
Repayments                  
Agriculture                  
Drought Concessional Loans Scheme - - - - - - - - -
Drought Recovery Loans Scheme - - - - - - - - -
Farm Finance Concessional Loans Scheme - - - - - - - - -
National Water Infrastructure Loan Facility - - - - - - - - -
Asbestos removal in the Australia Capital Territory - - - - - - -50,000 - -50,000
Contingent liabilities                  
Loan to New South Wales to assist beneficiaries of the Asbestors InjuriesCompensation Fund - - - - - - - - -
Natural disaster relief -4,083 - -12,276 - - - - - -16,359
Environment                  
Northern Territory — water and sewerage assistance - - - - - - - -136 -136
Housing                  
Commonwealth-State Housing Agreement loans -37,531 - -10,109 -9,737 -2,883 -5,151 - -904 -66,315
Housing for service personnel -1,813 - -1,089 -287 -69 - - - -3,258
Other housing - - - - - - -8,131 -3,135 -11,266
Infrastructure                  
Sewerage - - - - -168 - - - -168
Other purposes                  
Australian Capital Territory debt repayments - - - - - - -555 - -555
Loan Council — housing nominations -9,792 - -3,602 -6,246 -4,096 -2,626 - -3,260 -29,622
Interest                  
Agriculture                  
Drought Concessional Loans Scheme -8,617 -3,110 -8,913 -881 -880 -305 - -816 -23,522
Drought Recovery Loans Scheme -1,787 - -974 - -271 - - - -3,032
Farm Finance Concessional Loans Scheme -1,544 -1,082 -1,626 -525 -16 -522 - -268 -5,583
National Water Infrastructure Loan Facility ~ ~ ~ ~ ~ ~ ~ ~ -2,485
Asbestos removal in the Australian Capital Territory - - - - - - -27,076 - -27,076
Contingent liabilities                  
Loan to New South Wales to assist beneficiaries of the Asbestos Injuries Compensation Fund -7,636 - - - - - - - -7,636
Natural disaster relief -338 - -918 - - - - - -1,256
Environment                  
Northern Territory — water and sewerage assistance - - - - - - - -535 -535
Housing                  
Commonwealth-State Housing Agreement loans -28,189 - -8,166 -7,680 -2,158 -3,966 - -1,268 -51,427
Housing for service personnel -1,735 - -958 -166 -80 - - - -2,939
Other housing - - - - - - -5,908 -2,486 -8,394
Infrastructure                  
Sewerage - - - - -14 - - - -14
Other purposes                  
Australian Capital Territory debt repayments - - - - - - -418 - -418
Loan Council — housing nominations -19,485 - -6,984 -11,925 -8,456 -5,156 - -6,813 -58,819
Net Financial Flow -1,300 24,808 40,635 -27,947 -9,591 -17,726 -92,088 -10,121 -45,815
2018-19                  
Advances                  
Agriculture                  
Drought Concessional Loans Scheme 96,250 29,000 96,250 9,500 9,500 - - 9,500 250,000
Drought Recovery Loans Scheme - - - - - - - - -
Farm Finance Concessional Loans Scheme - - - - - - - - -
National Water Infrastructure Loan Facility ~ ~ ~ ~ ~ ~ ~ ~ 200,000
Asbestos removal in the Australian Capital Territory - - - - - - - - -
Contingent liabilities                  
Loan to New South Wales to assist beneficiaries of the Asbestos Injuries Compensation Fund - - - - - - - - -
Natural disaster relief - - - - - - - - -
Repayments                  
Agriculture                  
Drought Concessional Loans Scheme - - - - - - - - -
Drought Recovery Loans Scheme - - - - - - - - -
Farm Finance Concessional Loans Scheme - - - - - - - - -
National Water Infrastructure Loan Facility - - - - - - - - -
Asbestos removal in the Australia Capital Territory - - - - - - -50,000 - -50,000
Contingent liabilities                  
Loan to New South Wales to assist beneficiaries of the Asbestors Injuries Compensation Fund -14,943 - - - - - - - -14,943
Natural disaster relief -4,083 - -11,695 - - - - - -15,778
Environment                  
Northern Territory — water and sewerage assistance - - - - - - - -136 -136
Housing                  
Commonwealth-State Housing Agreement loans -37,608 - -10,245 -9,850 -3,038 -5,172 - -945 -66,858
Housing for service personnel -1,892 - -1,139 -295 -77 - - - -3,403
Other housing - - - - - - -8,222 -3,293 -11,515
Infrastructure                  
Sewerage - - - - -60 - - - -60
Other purposes                  
Australian Capital Territory debt repayments - - - - - - -555 - -555
Loan Council — housing nominations -10,232 - -3,765 -6,527 -4,281 -2,744 - -3,406 -30,955
Interest                  
Agriculture                  
Drought Concessional Loans Scheme -11,545 -3,992 -11,839 -1,169 -1,168 -305 - -1,104 -31,122
Drought Recovery Loans Scheme -1,787 - -974 - -271 - - - -3,032
Farm Finance Concessional Loans Scheme -1,544 -1,082 -1,626 -525 -16 -522 - -268 -5,583
National Water Infrastructure Loan Facility ~ ~ ~ ~ ~ ~ ~ ~ -7,100
Asbestos removal in the Australian Capital Territory - - - - - - -25,722 - -25,722
Contingent liabilities                  
Loan to New South Wales to assist beneficiaries of the Asbestos Injuries Compensation Fund -8,155 - - - - - - - -8,155
Natural disaster relief -282 - -748 - - - - - -1,030
Environment                  
Northern Territory — water and sewerage assistance - - - - - - - -528 -528
Housing                  
Commonwealth-State Housing Agreement loans -26,271 - -7,658 -7,187 -1,997 -3,698 - -1,225 -48,036
Housing for service personnel -1,654 - -910 -153 -77 - - - -2,794
Other housing - - - - - - -5,542 -2,327 -7,869
Infrastructure                  
Sewerage - - - - -3 - - - -3
Other purposes                  
Australian Capital Territory debt repayments - - - - - - -348 - -348
Loan Council — housing nominations -19,058 - -6,826 -11,650 -8,279 -5,047 - -6,673 -57,533
Net Financial Flow -42,804 23,926 38,825 -27,856 -9,767 -17,488 -90,389 -10,405 56,942
2019-20                  
Advances                  
Agriculture                  
Drought Concessional Loans Scheme 96,250 29,000 96,250 9,500 9,500 - - 9,500 250,000
Drought Recovery Loans Scheme - - - - - - - - -
Farm Finance Concessional Loans Scheme - - - - - - - - -
National Water Infrastructure Loan Facility ~ ~ ~ ~ ~ ~ ~ ~ 500,000
Asbestos removal in the Australian Capital Territory - - - - - - - - -
Contingent liabilities                  
Loan to New South Wales to assist beneficiaries of the Asbestos InjuriesCompensation Fund - - - - - - - - -
Natural disaster relief - - - - - - - - -
Repayments                  
Agriculture                  
Drought Concessional Loans Scheme - - - - - - - - -
Drought Recovery Loans Scheme - - - - - - - - -
Farm Finance Concessional Loans Scheme -33,508 -23,675 -36,469 -5,068 -450 -4,873 - -6,059 -110,102
National Water Infrastructure Loan Facility - - - - - - - - -
Asbestos removal in the Australia Capital Territory - - - - - - -50,000 - -50,000
Contingent liabilities                  
Loan to New South Wales to assist beneficiaries of the Asbestors InjuriesCompensation Fund -59,772 - - - - - - - -59,772
Natural disaster relief -4,083 - -10,885 - - - - - -14,968
Environment                  
Northern Territory — water and sewerage assistance - - - - - - - -136 -136
Housing                  
Commonwealth-State Housing Agreement loans -37,361 - -10,291 -9,880 -3,202 -5,150 - -987 -66,871
Housing for service personnel -1,955 - -1,224 -305 -85 - - - -3,569
Other housing - - - - - - -8,276 -3,460 -11,736
Infrastructure                  
Sewerage - - - - - - - - -
Other purposes                  
Australian Capital Territory debt repayments - - - - - - -555 - -555
Loan Council — housing nominations -10,693 - -3,934 -6,821 -4,473 -2,867 - -3,560 -32,348
Interest                  
Agriculture                  
Drought Concessional Loans Scheme -14,470 -4,874 -14,765 -1,458 -1,457 -305 - -1,393 -38,722
Drought Recovery Loans Scheme -1,787 - -974 - -271 - - - -3,032
Farm Finance Concessional Loans Scheme -354 -241 -333 -345 - -349 - -53 -1,675
National Water Infrastructure Loan Facility ~ ~ ~ ~ ~ ~ ~ ~ -19,170
Asbestos removal in the Australian Capital Territory - - - - - - -24,368 - -24,368
Contingent liabilities                  
Loan to New South Wales to assist beneficiaries of the Asbestos Injuries Compensation Fund -6,674 - - - - - - - -6,674
Natural disaster relief -225 - -587 - - - - - -812
Environment                  
Northern Territory — water and sewerage assistance - - - - - - - -521 -521
Housing                  
Commonwealth-State Housing Agreement loans -24,333 - -7,138 -6,684 -1,828 -3,441 - -1,181 -44,605
Housing for service personnel -1,570 - -859 -140 -74 - - - -2,643
Other housing - - - - - - -5,172 -2,160 -7,332
Infrastructure                  
Sewerage - - - - - - - - -
Other purposes                  
Australian Capital Territory debt repayments - - - - - - -278 - -278
Loan Council — housing nominations -18,607 - -6,658 -11,359 -8,091 -4,920 - -6,523 -56,158
Net Financial Flow -119,142 210 2,133 -32,560 -10,431 -21,905 -88,649 -16,533 193,953