2012-13 Government Mid-year Financial Projections Statement

2012-13 Government Mid-year Financial Projections StatementForecast unfunded superannuation liabilities are projected to increase by around$1.1 billion by 30 June 2016 (relative to the 2012-13 Budget). This reflects the impact ofthe persistently low ten year bond rate, used by the actuary to value these liabilities eachyear at 30 June. This increase is expected to slowly wind back across the forwardestimates period, on the assumption that the discount rate will trend back to the long termaverage (around 6%) over time. This valuation effect does not substantially changeexpectations that unfunded superannuation liabilities will become immaterial over thenext two or three decades (as the vast majority of new superannuation entitlements havebeen fully funded since 1998-99), and will not impact cash payments from theConsolidated Account, which are dependent on individual employee entitlements ratherthan the annual valuation of all such obligations.General government sector net debt is discussed later in this chapter.3530$ BillionLIABILITIES AT 30 JUNEGeneral Government SectorBorrowings Unfunded Superannuation Other LiabilitiesFigure 425201510502012 2013 2014 2015 201620