{ "entity_id": "O-000930", "folder": "Australian-Office-of-Financial-Management", "name": "Australian Office of Financial Management", "type": "Non-corporate Commonwealth Entity", "jurisdiction": "Commonwealth", "portfolio": "Treasury", "website": "http://www.aofm.gov.au", "data_status": "rich", "completeness": { "has_strategy_brief": true, "has_strategy_structured": true, "has_vision": false, "has_kpi_targets": true, "has_kpi_results": true, "has_strategy_overview": true, "has_legislation_text": true, "has_legislation_structured": true, "has_global_initiatives_text": true, "has_ideas": true, "has_artifacts": true, "n_ideas": 8, "n_legislation": 6, "n_artifacts": 1, "n_kpi_targets": 12, "n_kpi_results": 12, "n_outcomes": 1, "verified_own_data": true }, "strategy_profile": { "status": "published", "confidence": "high", "summary": "The AOFM needs to fulfil 4 key purposes:\n1. Meet the government’s annual financing task while managing the trade-offs between costs and risks.\n2. Ensure the government can always meet its cash outlay requirements.\n3. Conduct market-facing activities in a manner that supports a well-functioning AGS market.\n4. Meet the priorities of the ABSF and SFSF. [AR p.7]", "official_site_url": "http://www.aofm.gov.au", "source_documents": [ { "type": "annual_report", "title": "AOFM Annual Report 2022-23 [PDF]", "url": "https://www.aofm.gov.au/sites/default/files/2023-10-19/AOFM%202022-23%20Annual%20Report_WEB.pdf", "period": "2022-23", "confidence": "high" } ], "purpose": { "text": "The AOFM needs to fulfil 4 key purposes:\n1. Meet the government’s annual financing task while managing the trade-offs between costs and risks.\n2. Ensure the government can always meet its cash outlay requirements.\n3. Conduct market-facing activities in a manner that supports a well-functioning AGS market.\n4. Meet the priorities of the ABSF and SFSF. [AR p.7]", "source_url": "", "source_page": 7, "source_deep_url": "" }, "vision": null, "strategic_priorities": [ { "title": "Meet the government’s annual financing task while managing the trade-offs between costs and risks", "description": "Meet the government’s annual financing task while managing the trade-offs between costs and risks", "source_url": "", "source_page": 20, "source_deep_url": "" }, { "title": "Ensure the government can always meet its cash outlay requirements", "description": "Ensure the government can always meet its cash outlay requirements", "source_url": "", "source_page": 21, "source_deep_url": "" }, { "title": "Conduct market facing activities in a manner that supports a well-functioning AGS market", "description": "Conduct market facing activities in a manner that supports a well-functioning AGS market", "source_url": "", "source_page": 21, "source_deep_url": "" }, { "title": "Meet the priorities of the ABSF and the SFSF", "description": "Meet the priorities of the ABSF and the SFSF", "source_url": "", "source_page": 21, "source_deep_url": "" } ], "values": [ { "name": "Trust", "description": "", "source_url": "", "source_page": null }, { "name": "Excellence", "description": "", "source_url": "", "source_page": null }, { "name": "Diversity", "description": "", "source_url": "", "source_page": null } ], "outcomes": [ { "name": "Outcome 1: Advancement of macroeconomic growth and stability, and the effective operation of financial markets", "description": "The AOFM’s role in financing the Budget\nThe Australian Government Budget is usually released in May each year for the financial year commencing on 1 July and 3 forward years. The Budget sets out the government’s fiscal outlook and budget position, reflecting government policy decisions and assumptions about the performance of the domestic and global economies. The Budget for the 2022–23 financial year was released in March 2022 and a secondary Budget was released in October 2022, reflecting the change in government.\n\nDuring the Budget process, the AOFM is given an estimate of the annual financing task for the Budget year and forward years. The annual financing task for the Budget year together with an (AOFM-formulated) annual debt management strategy is central to determining the size and nature of the annual issuance program.\n\nTypically, in December each year the government publishes a Budget update, the Mid-Year Economic and Fiscal Outlook (MYEFO). At this point, the AOFM updates its issuance program for the Budget year. [AR p.8]", "activities": [ "Establish a debt management strategy", "Execute the debt issuance program", "Settle transactions and coupon and redemption payments", "Monitor costs and risks of the portfolio of assets and liabilities" ], "source_url": "", "source_page": 8, "source_deep_url": "" } ], "performance_measures": [ { "code": "CCE01", "measure": "Annual debt management strategy", "target": "Prior to start of fiscal year", "latest_result": "Met", "status": "Achieved", "target_source_url": "", "target_source_page": 14, "result_source_url": "https://www.aofm.gov.au/sites/default/files/2023-10-19/AOFM%202022-23%20Annual%20Report_WEB.pdf", "result_source_page": 25 }, { "code": "CCE02", "measure": "Term issuance", "target": "Zero shortfall in volume in dollar terms for the fiscal year between actual Treasury Bond issuance and planned issuance announced at the most recent official Budget related update", "latest_result": "Partially met", "status": "Partially achieved", "target_source_url": "", "target_source_page": 14, "result_source_url": "https://www.aofm.gov.au/sites/default/files/2023-10-19/AOFM%202022-23%20Annual%20Report_WEB.pdf", "result_source_page": 26 }, { "code": "CCE03", "measure": "New issuance yields", "target": "At or below prevailing mid-market secondary yields", "latest_result": "Met", "status": "Achieved", "target_source_url": "", "target_source_page": 14, "result_source_url": "https://www.aofm.gov.au/sites/default/files/2023-10-19/AOFM%202022-23%20Annual%20Report_WEB.pdf", "result_source_page": 26 }, { "code": "CCE04", "measure": "Tender coverage ratio", "target": "Greater than 2.5 times", "latest_result": "Met", "status": "Achieved", "target_source_url": "", "target_source_page": 14, "result_source_url": "https://www.aofm.gov.au/sites/default/files/2023-10-19/AOFM%202022-23%20Annual%20Report_WEB.pdf", "result_source_page": 26 }, { "code": "CCE05", "measure": "Settlement of AGS transactions", "target": "Zero number of times AGS transactions fail to settle in a complete, timely and accurate manner where the AOFM is responsible for the failure", "latest_result": "Met", "status": "Achieved", "target_source_url": "", "target_source_page": 14, "result_source_url": "https://www.aofm.gov.au/sites/default/files/2023-10-19/AOFM%202022-23%20Annual%20Report_WEB.pdf", "result_source_page": 26 }, { "code": "CCE06", "measure": "Settlement of AGS coupons and redemptions", "target": "Zero number of times AGS coupon and redemption payments fail to occur in a complete, timely and accurate manner where the AOFM is responsible for the failure", "latest_result": "Met", "status": "Achieved", "target_source_url": "", "target_source_page": 14, "result_source_url": "https://www.aofm.gov.au/sites/default/files/2023-10-19/AOFM%202022-23%20Annual%20Report_WEB.pdf", "result_source_page": 26 }, { "code": "CCE07", "measure": "Financing cost – issuance", "target": "Lower than the average 10-year Treasury Bond rate over the same period", "latest_result": "Not met", "status": "Not achieved", "target_source_url": "", "target_source_page": 14, "result_source_url": "https://www.aofm.gov.au/sites/default/files/2023-10-19/AOFM%202022-23%20Annual%20Report_WEB.pdf", "result_source_page": 26 }, { "code": "CCE08", "measure": "Use of overdraft facility", "target": "Zero number of instances the RBA overdraft facility was utilised", "latest_result": "Zero", "status": "Achieved", "target_source_url": "", "target_source_page": 14, "result_source_url": "https://www.aofm.gov.au/sites/default/files/2023-10-19/AOFM%202022-23%20Annual%20Report_WEB.pdf", "result_source_page": 26 }, { "code": "CCE09", "measure": "Investor publications", "target": "At least twice a year", "latest_result": "At least twice a year", "status": "Achieved", "target_source_url": "", "target_source_page": 14, "result_source_url": "https://www.aofm.gov.au/sites/default/files/2023-10-19/AOFM%202022-23%20Annual%20Report_WEB.pdf", "result_source_page": 26 }, { "code": "CCE10", "measure": "Secondary market turnover", "target": "Greater than the annual turnover in dollar value terms in the previous fiscal year", "latest_result": "Greater than the annual turnover in dollar value terms in the previous fiscal year", "status": "Achieved", "target_source_url": "", "target_source_page": 14, "result_source_url": "https://www.aofm.gov.au/sites/default/files/2023-10-19/AOFM%202022-23%20Annual%20Report_WEB.pdf", "result_source_page": 26 }, { "code": "CCE11", "measure": "ABSF rate of return", "target": "Greater than Bloomberg Treasury 0-1 year index percentage point terms", "latest_result": "Greater than Bloomberg Treasury 0-1 year index percentage point terms", "status": "Achieved", "target_source_url": "", "target_source_page": 14, "result_source_url": "https://www.aofm.gov.au/sites/default/files/2023-10-19/AOFM%202022-23%20Annual%20Report_WEB.pdf", "result_source_page": 26 }, { "code": "CCE12", "measure": "SFSF losses", "target": "Zero gross credit losses for a fiscal year divided by the average drawn (invested) amount in percentage point terms", "latest_result": "Zero gross credit losses for a fiscal year divided by the average drawn (invested) amount in percentage point terms", "status": "Achieved", "target_source_url": "", "target_source_page": 14, "result_source_url": "https://www.aofm.gov.au/sites/default/files/2023-10-19/AOFM%202022-23%20Annual%20Report_WEB.pdf", "result_source_page": 26 } ], "document_alignment_terms": { "must_support": [ "The AOFM needs to fulfil 4 key purposes:\n1. Meet the government’s annual financing task while managing the trade-offs between costs and risks.\n2. Ensure the government can always m", "Meet the government’s annual financing task while managing the trade-offs between costs and risks", "Ensure the government can always meet its cash outlay requirements", "Conduct market facing activities in a manner that supports a well-functioning AGS market", "Meet the priorities of the ABSF and the SFSF" ], "watch_terms": [ "Annual debt management strategy", "Term issuance", "New issuance yields", "Tender coverage ratio", "Settlement of AGS transactions", "Settlement of AGS coupons and redemptions", "Financing cost – issuance", "Use of overdraft facility", "Investor publications", "Secondary market turnover", "ABSF rate of return", "SFSF losses" ], "avoid_claiming_without_evidence": [] }, "review_note": "" }, "strategy_brief_md": "# Australian Office of Financial Management — Strategy Brief\n\n**Reporting period**: 2024-25\n**Corporate plan in force**: 2025-26\n**Annual Report**: [2024-25](https://www.aofm.gov.au/sites/default/files/2023-10-19/AOFM%202022-23%20Annual%20Report_WEB.pdf)\n\n## Our purpose / purposes\n\n> The AOFM needs to fulfil 4 key purposes:\n1. Meet the government’s annual financing task while managing the trade-offs between costs and risks.\n2. Ensure the government can always meet its cash outlay requirements.\n3. Conduct market-facing activities in a manner that supports a well-functioning AGS market.\n4. Meet the priorities of the ABSF and SFSF. [AR p.7](https://www.aofm.gov.au/sites/default/files/2023-10-19/AOFM%202022-23%20Annual%20Report_WEB.pdf#page=7) [CP p.7]\n\n## How we deliver\n\n> The AOFM manages debt financing, the cash portfolio, and investment programs for the Australian Government. We are the government’s sovereign debt manager, responsible for issuing and managing the government’s debt and cash balances. [AR p.6](https://www.aofm.gov.au/sites/default/files/2023-10-19/AOFM%202022-23%20Annual%20Report_WEB.pdf#page=6) [CP p.6]\n\n## Government priorities for this department\n\n- Meet the government’s annual financing task while managing the trade-offs between costs and risks [CP p.20]\n- Ensure the government can always meet its cash outlay requirements [CP p.21]\n- Conduct market facing activities in a manner that supports a well-functioning AGS market [CP p.21]\n- Meet the priorities of the ABSF and the SFSF [CP p.21]\n\n## Outcomes\n\n### Outcome 1: Advancement of macroeconomic growth and stability, and the effective operation of financial markets\nThe AOFM’s role in financing the Budget\nThe Australian Government Budget is usually released in May each year for the financial year commencing on 1 July and 3 forward years. The Budget sets out the government’s fiscal outlook and budget position, reflecting government policy decisions and assumptions about the performance of the domestic and global economies. The Budget for the 2022–23 financial year was released in March 2022 and a secondary Budget was released in October 2022, reflecting the change in government.\n\nDuring the Budget process, the AOFM is given an estimate of the annual financing task for the Budget year and forward years. The annual financing task for the Budget year together with an (AOFM-formulated) annual debt management strategy is central to determining the size and nature of the annual issuance program.\n\nTypically, in December each year the government publishes a Budget update, the Mid-Year Economic and Fiscal Outlook (MYEFO). At this point, the AOFM updates its issuance program for the Budget year. [AR p.8](https://www.aofm.gov.au/sites/default/files/2023-10-19/AOFM%202022-23%20Annual%20Report_WEB.pdf#page=8) [CP p.8]\n\n**Key activities:**\n- Establish a debt management strategy\n- Execute the debt issuance program\n- Settle transactions and coupon and redemption payments\n- Monitor costs and risks of the portfolio of assets and liabilities\n\n## Values and principles\n\n- Trust\n- Excellence\n- Diversity\n\n## What they will measure themselves on this year (targets from 2025-26 corporate plan)\n\n| Code | Measure | Target | Source |\n|---|---|---|---|\n| CCE01 | Annual debt management strategy | Prior to start of fiscal year | CP p.14 |\n| CCE02 | Term issuance | Zero shortfall in volume in dollar terms for the fiscal year between actual Treasury Bond issuance and planned issuance announced at the most recent official Budget related update | CP p.14 |\n| CCE03 | New issuance yields | At or below prevailing mid-market secondary yields | CP p.14 |\n| CCE04 | Tender coverage ratio | Greater than 2.5 times | CP p.14 |\n| CCE05 | Settlement of AGS transactions | Zero number of times AGS transactions fail to settle in a complete, timely and accurate manner where the AOFM is responsible for the failure | CP p.14 |\n| CCE06 | Settlement of AGS coupons and redemptions | Zero number of times AGS coupon and redemption payments fail to occur in a complete, timely and accurate manner where the AOFM is responsible for the failure | CP p.14 |\n| CCE07 | Financing cost – issuance | Lower than the average 10-year Treasury Bond rate over the same period | CP p.14 |\n| CCE08 | Use of overdraft facility | Zero number of instances the RBA overdraft facility was utilised | CP p.14 |\n| CCE09 | Investor publications | At least twice a year | CP p.14 |\n| CCE10 | Secondary market turnover | Greater than the annual turnover in dollar value terms in the previous fiscal year | CP p.14 |\n| CCE11 | ABSF rate of return | Greater than Bloomberg Treasury 0-1 year index percentage point terms | CP p.14 |\n| CCE12 | SFSF losses | Zero gross credit losses for a fiscal year divided by the average drawn (invested) amount in percentage point terms | CP p.14 |\n\n## How they performed last year (results from 2024-25 annual report)\n\n| Code | Measure | Result | Status | Source |\n|---|---|---|---|---|\n| CCE01 | Annual debt management strategy | Met | Achieved | [AR p.25](https://www.aofm.gov.au/sites/default/files/2023-10-19/AOFM%202022-23%20Annual%20Report_WEB.pdf#page=25)(https://www.aofm.gov.au/sites/default/files/2023-10-19/AOFM%202022-23%20Annual%20Report_WEB.pdf#page=25) |\n| CCE02 | Term issuance | Partially met | Partially achieved | [AR p.26](https://www.aofm.gov.au/sites/default/files/2023-10-19/AOFM%202022-23%20Annual%20Report_WEB.pdf#page=26)(https://www.aofm.gov.au/sites/default/files/2023-10-19/AOFM%202022-23%20Annual%20Report_WEB.pdf#page=26) |\n| CCE03 | New issuance yields | Met | Achieved | [AR p.26](https://www.aofm.gov.au/sites/default/files/2023-10-19/AOFM%202022-23%20Annual%20Report_WEB.pdf#page=26)(https://www.aofm.gov.au/sites/default/files/2023-10-19/AOFM%202022-23%20Annual%20Report_WEB.pdf#page=26) |\n| CCE04 | Tender coverage ratio | Met | Achieved | [AR p.26](https://www.aofm.gov.au/sites/default/files/2023-10-19/AOFM%202022-23%20Annual%20Report_WEB.pdf#page=26)(https://www.aofm.gov.au/sites/default/files/2023-10-19/AOFM%202022-23%20Annual%20Report_WEB.pdf#page=26) |\n| CCE05 | Settlement of AGS transactions | Met | Achieved | [AR p.26](https://www.aofm.gov.au/sites/default/files/2023-10-19/AOFM%202022-23%20Annual%20Report_WEB.pdf#page=26)(https://www.aofm.gov.au/sites/default/files/2023-10-19/AOFM%202022-23%20Annual%20Report_WEB.pdf#page=26) |\n| CCE06 | Settlement of AGS coupons and redemptions | Met | Achieved | [AR p.26](https://www.aofm.gov.au/sites/default/files/2023-10-19/AOFM%202022-23%20Annual%20Report_WEB.pdf#page=26)(https://www.aofm.gov.au/sites/default/files/2023-10-19/AOFM%202022-23%20Annual%20Report_WEB.pdf#page=26) |\n| CCE07 | Financing cost – issuance | Not met | Not achieved | [AR p.26](https://www.aofm.gov.au/sites/default/files/2023-10-19/AOFM%202022-23%20Annual%20Report_WEB.pdf#page=26)(https://www.aofm.gov.au/sites/default/files/2023-10-19/AOFM%202022-23%20Annual%20Report_WEB.pdf#page=26) |\n| CCE08 | Use of overdraft facility | Zero | Achieved | [AR p.26](https://www.aofm.gov.au/sites/default/files/2023-10-19/AOFM%202022-23%20Annual%20Report_WEB.pdf#page=26)(https://www.aofm.gov.au/sites/default/files/2023-10-19/AOFM%202022-23%20Annual%20Report_WEB.pdf#page=26) |\n| CCE09 | Investor publications | At least twice a year | Achieved | [AR p.26](https://www.aofm.gov.au/sites/default/files/2023-10-19/AOFM%202022-23%20Annual%20Report_WEB.pdf#page=26)(https://www.aofm.gov.au/sites/default/files/2023-10-19/AOFM%202022-23%20Annual%20Report_WEB.pdf#page=26) |\n| CCE10 | Secondary market turnover | Greater than the annual turnover in dollar value terms in the previous fiscal year | Achieved | [AR p.26](https://www.aofm.gov.au/sites/default/files/2023-10-19/AOFM%202022-23%20Annual%20Report_WEB.pdf#page=26)(https://www.aofm.gov.au/sites/default/files/2023-10-19/AOFM%202022-23%20Annual%20Report_WEB.pdf#page=26) |\n| CCE11 | ABSF rate of return | Greater than Bloomberg Treasury 0-1 year index percentage point terms | Achieved | [AR p.26](https://www.aofm.gov.au/sites/default/files/2023-10-19/AOFM%202022-23%20Annual%20Report_WEB.pdf#page=26)(https://www.aofm.gov.au/sites/default/files/2023-10-19/AOFM%202022-23%20Annual%20Report_WEB.pdf#page=26) |\n| CCE12 | SFSF losses | Zero gross credit losses for a fiscal year divided by the average drawn (invested) amount in percentage point terms | Achieved | [AR p.26](https://www.aofm.gov.au/sites/default/files/2023-10-19/AOFM%202022-23%20Annual%20Report_WEB.pdf#page=26)(https://www.aofm.gov.au/sites/default/files/2023-10-19/AOFM%202022-23%20Annual%20Report_WEB.pdf#page=26) |", "strategy_overview_evidence_md": null, "internal_strategy_evidence_md": "# Australian Office of Financial Management - Strategy, Performance, and Operating Profile\n\n**Generated at**: 2026-05-09T21:50:16.198965+00:00\n**Entity ID**: O-000930\n**Entity type**: Non-corporate Commonwealth Entity\n**Jurisdiction**: Commonwealth\n**Portfolio**: Treasury\n**Website**: http://www.aofm.gov.au\n\n> Draft generated from scraped source material. Treat this as an evidence pack for editorial review, not a final judgement.\n\n## Source Coverage\n\n| Source type | Count |\n|---|---:|\n| annual-reports | 1 |\n| global-intelligence | 4 |\n| pages | 34 |\n\n## Executive Readout\n\n### Purpose\n\n- [Page 51]\nPURPOSE 1\nChart 9: Treasury Bond issuance – average yield and maturity\nYears/ % Years/ %\n12 12\n11 11\n10 10\n9 9\n8 8\n7 7\n6 6\n5 5\n4 4\n3 3\n2 2\n1 1\nWeighted average maturity (years) Average issuance yield (%)\nTreasury Indexed Bonds (TIBs)\nDebt servicing cost on TIBs are driven by yields at issuance and CPI outcomes.\n Source: `annual-reports/2022-23.pdf (https://www.aofm.gov.au/sites/default/files/2023-10-19/AOFM%202022-23%20Annual%20Report_WEB.pdf)`\n- [Page 54]\nPURPOSE 1\nChart 10: Evolution of Treasury Bond benchmark yields\n% %\n5 5\n4 4\n3 3\n2 2\nJun 22 Jul 22 Aug 22 Sep 22 Oct 22 Nov 22 Dec 22 Jan 23 Feb 23 Mar 23 Apr 23 May 23 Jun 23\n3-year 10-year 30-year\nAppendix 1: Cost outcomes for the entire portfolio of\ndebt and assets administered by the AOFM\nThe net debt servicing cost of the portfolio managed by the AOFM was\n$20.4 billion in 2022–23 (2021–22: $18.3 billion) on an average book volume of\n$851 billion (2021–22: $828 billion).\n Source: `annual-reports/2022-23.pdf (https://www.aofm.gov.au/sites/default/files/2023-10-19/AOFM%202022-23%20Annual%20Report_WEB.pdf)`\n- [Page 45]\nPURPOSE 1\nKey Activity 1.4: Monitor costs and risks of the\nportfolio of assets and liabilities\nRefer to Appendix 1 for details of the cost and return outcomes for the portfolio\nof debt and assets administered by the AOFM.\n Source: `annual-reports/2022-23.pdf (https://www.aofm.gov.au/sites/default/files/2023-10-19/AOFM%202022-23%20Annual%20Report_WEB.pdf)`\n- [Page 28]\nTable 1: Performance measures and targets\nPerformance measures Target\nPURPOSE 1 Meet the government’s annual financing task while managing the\ntrade-offs between costs and risks\n1.1 Establish a debt 1.1.1 Annual debt management strategy: Prior to start\nmanagement formulate an annual debt management of fiscal year\nstrategy strategy and advise the Secretary to the\nTreasury with supporting analysis.\n Source: `annual-reports/2022-23.pdf (https://www.aofm.gov.au/sites/default/files/2023-10-19/AOFM%202022-23%20Annual%20Report_WEB.pdf)`\n\n### Role and Functions\n\n- [Page 54]\nPURPOSE 1\nChart 10: Evolution of Treasury Bond benchmark yields\n% %\n5 5\n4 4\n3 3\n2 2\nJun 22 Jul 22 Aug 22 Sep 22 Oct 22 Nov 22 Dec 22 Jan 23 Feb 23 Mar 23 Apr 23 May 23 Jun 23\n3-year 10-year 30-year\nAppendix 1: Cost outcomes for the entire portfolio of\ndebt and assets administered by the AOFM\nThe net debt servicing cost of the portfolio managed by the AOFM was\n$20.4 billion in 2022–23 (2021–22: $18.3 billion) on an average book volume of\n$851 billion (2021–22: $828 billion).\n Source: `annual-reports/2022-23.pdf (https://www.aofm.gov.au/sites/default/files/2023-10-19/AOFM%202022-23%20Annual%20Report_WEB.pdf)`\n- [Page 55]\nPURPOSE 1\nTable 9: Commonwealth debt and assets administered by the AOFM\nDebt servicing cost Book volume Effective yield\n2022–23 2021–22 2022–23 2021–22 2022–23 2021–22\n$ million $ million % per annum\nContribution by instrument\nTreasury Bonds (17,314) (16,314) (832,445) (803,207) 2.08 2.03\nTreasury Indexed Bonds (4,081) (2,200) (48,727) (47,557) 8.38 4.63\nTreasury Notes (823) (22) (28,830) (30,485) 2.86 0.07\nGross AGS (22,218) (18,536) (910,002) (881,249) 2.44 2.10\nDeposits with the RBA 1,716 110 56,767 50,652 3.02 0.22\nABSF investments1 18 3 2 45 99 7 .35 3.00\nSFSF investments1 26 32 496 1,073 5.14 3.04\nState housing advances 79 83 1,340 1,420 5.86 5.85\nGross assets 1,839 228 58,848 53,244 3.12 0.43\nNet portfolio (20,379) (18,308) (851,154) (828,005) 2.39 2.21\nContribution by portfolio\nLong Term Debt Portfolio (21,395) (18,514) (881,172) (850,764) 2.43 2.18\n Source: `annual-reports/2022-23.pdf (https://www.aofm.gov.au/sites/default/files/2023-10-19/AOFM%202022-23%20Annual%20Report_WEB.pdf)`\n- [Page 112]\nTable 30: Agency resource statement and resources for outcomes\nOutcome 1: The advancement of macroeconomic growth and stability and effective operation\nof financial markets, through issuing debt, investing in financial assets, and managing debt,\ninvestments, and cash for the Australian Government\nBudget (a) Actual Variation\nExpenses\n2022–23 2022–23\n$’000 $’000 $’000\nProgram1.1: Australian Office of Financial Management\nDepartmental expenses\nDepartmental appropriation and other receipts 13,703 13,185 518\nExpenses not requiring appropriation in the Budget year 813 864 51\nAdministered expenses before re-measurements\nExpenses not requiring appropriation (b) 1,360 - 1,360\nSpecial appropriations expenses\nCommonwealth Inscribed Stock Act 1911 22,152,069 22,242,103 (90,034)\nAustralian Business Securitisation Fund Act 2019 – – –\nStructured Finance Support - - -\n Source: `annual-reports/2022-23.pdf (https://www.aofm.gov.au/sites/default/files/2023-10-19/AOFM%202022-23%20Annual%20Report_WEB.pdf)`\n- [Page 201]\nPGPA rule Part of Description Requirement\nreference report\n17AE(1)(aa)(ii) Position title of the accountable authority or each Mandatory\nmember of the accountable authority\n17AE(1)(aa)(iii) Period as the accountable authority or member of Mandatory\nthe accountable authority within the reporting\nperiod\n17AE(1)(b) An outline of the structure of the portfolio of the Portfolio\nentity. departments\n– mandatory\n17AE(2) Where the outcomes and programs administered by If applicable,\nthe entity differ from any Portfolio Budget Mandatory\nStatement, Portfolio Additional Estimates Statement\nor other portfolio estimates statement that was\nprepared for the entity for the period, include details\nof variation and reasons for change.\n Source: `annual-reports/2022-23.pdf (https://www.aofm.gov.au/sites/default/files/2023-10-19/AOFM%202022-23%20Annual%20Report_WEB.pdf)`\n- [Page 45]\nPURPOSE 1\nKey Activity 1.4: Monitor costs and risks of the\nportfolio of assets and liabilities\nRefer to Appendix 1 for details of the cost and return outcomes for the portfolio\nof debt and assets administered by the AOFM.\n Source: `annual-reports/2022-23.pdf (https://www.aofm.gov.au/sites/default/files/2023-10-19/AOFM%202022-23%20Annual%20Report_WEB.pdf)`\n- [pages 122,123,124,125,126,127,128]\nt to the AOFM’s role in\nmanaging the debt portfolio, which is predominately issued and held to maturity,\nand where portfolio restructuring is performed for debt management purposes,\nrather than for profit making purposes.\n Source: `annual-reports/2022-23.pdf (https://www.aofm.gov.au/sites/default/files/2023-10-19/AOFM%202022-23%20Annual%20Report_WEB.pdf)`\n\n### Strategic Priorities\n\n- [Page 75]\nPURPOSE 4\nPERFORMANCE ASSESSMENT:\nPURPOSE 4\nMeet the priorities of the ABSF and SFSF\nPART 2: Performance Statement | AOFM Annual Report 2022–23 67\n Source: `annual-reports/2022-23.pdf (https://www.aofm.gov.au/sites/default/files/2023-10-19/AOFM%202022-23%20Annual%20Report_WEB.pdf)`\n- PURPOSE 4 Meet the priorities of the ABSF and the SFSF\n4.1 Manage the ABSF 4.1.1 ABSF rate of return: the accrual earnings Greater than\nprogram (net of losses) for a fiscal year divided by the Bloomberg\naverage drawn (invested) amount in AusBond\npercentage point terms.\n Source: `annual-reports/2022-23.pdf (https://www.aofm.gov.au/sites/default/files/2023-10-19/AOFM%202022-23%20Annual%20Report_WEB.pdf)`\n- [Page 28]\nTable 1: Performance measures and targets\nPerformance measures Target\nPURPOSE 1 Meet the government’s annual financing task while managing the\ntrade-offs between costs and risks\n1.1 Establish a debt 1.1.1 Annual debt management strategy: Prior to start\nmanagement formulate an annual debt management of fiscal year\nstrategy strategy and advise the Secretary to the\nTreasury with supporting analysis.\n Source: `annual-reports/2022-23.pdf (https://www.aofm.gov.au/sites/default/files/2023-10-19/AOFM%202022-23%20Annual%20Report_WEB.pdf)`\n- PURPOSE 3 Conduct market facing activities in a manner that supports\na well-functioning AGS market\n3.1 Communicate 3.1.1 Market commitments: the number of times Zero\nAOFM operations the AOFM failed to conduct issuance\nclearly and operations consistent with prior market\nconsistently to the announcements.\nmarket\n3.2 Conduct a market 3.2.1 Investor publications: the number of times At least\nengagement investor targeted information publications are twice a year\nprogram updated and made available on the AOFM\nwebsite.\n Source: `annual-reports/2022-23.pdf (https://www.aofm.gov.au/sites/default/files/2023-10-19/AOFM%202022-23%20Annual%20Report_WEB.pdf)`\n- The RBA’s preferred inflation measure moved from 5.0% in June 2022 to a high of\n6.9% in December 2022, significantly more than the 2.0–3.0% target band.\n Source: `annual-reports/2022-23.pdf (https://www.aofm.gov.au/sites/default/files/2023-10-19/AOFM%202022-23%20Annual%20Report_WEB.pdf)`\n- Having initially announced a Treasury Bond\nprogram of $125 billion for 2022–23 (at Budget time in March 2022), the AOFM\nfinished the year having issued $78.8 billion.\n Source: `annual-reports/2022-23.pdf (https://www.aofm.gov.au/sites/default/files/2023-10-19/AOFM%202022-23%20Annual%20Report_WEB.pdf)`\n- [Page 31]\nPURPOSE 1\nPURPOSE 1\nPERFORMANCE ASSESSMENT:\nPURPOSE 1\nMeet the government’s annual financing task while\nmanaging the trade-offs between costs and risks\nPART 2: Performance statement | AOFM Annual Report 2022–23 23\n Source: `annual-reports/2022-23.pdf (https://www.aofm.gov.au/sites/default/files/2023-10-19/AOFM%202022-23%20Annual%20Report_WEB.pdf)`\n- [Page 33]\nPURPOSE 1\nTable 2: Summary of performance for Purpose 1\nPerformance measures 2022–23 Performance\nTarget Results\nKey Activity 1.1 Establish a debt management strategy:\n• consistent with a prudent sovereign debt management approach\n• that anticipates the broad market outlook and attendant risks\n• to meet the Budget financing task\n• to meet projected debt portfolio requirements (such as the need for\nnew maturities)\n• to effectively balance borrowing cost and portfolio risks.\n Source: `annual-reports/2022-23.pdf (https://www.aofm.gov.au/sites/default/files/2023-10-19/AOFM%202022-23%20Annual%20Report_WEB.pdf)`\n- [Page 39]\nPURPOSE 1\nChart 4 shows the amount outstanding in each of the 7 TIB lines at 30 June 2023\nand the allocation of issuance during the 2022–23 year.\n Source: `annual-reports/2022-23.pdf (https://www.aofm.gov.au/sites/default/files/2023-10-19/AOFM%202022-23%20Annual%20Report_WEB.pdf)`\n- In 2022–23, the\nAOFM issued $78.8 billion of Treasury Bonds compared to initial guidance of\naround $125 billion when the 2022–23 Budget was announced.\n Source: `annual-reports/2022-23.pdf (https://www.aofm.gov.au/sites/default/files/2023-10-19/AOFM%202022-23%20Annual%20Report_WEB.pdf)`\n\n## KPIs, Targets, and Where They Are At\n\n- Partially met The AOFM partially achieved its aims against the performance measure.\n Source: `annual-reports/2022-23.pdf (https://www.aofm.gov.au/sites/default/files/2023-10-19/AOFM%202022-23%20Annual%20Report_WEB.pdf)`\n- The RBA’s preferred inflation measure moved from 5.0% in June 2022 to a high of\n6.9% in December 2022, significantly more than the 2.0–3.0% target band.\n Source: `annual-reports/2022-23.pdf (https://www.aofm.gov.au/sites/default/files/2023-10-19/AOFM%202022-23%20Annual%20Report_WEB.pdf)`\n- [Page 28]\nTable 1: Performance measures and targets\nPerformance measures Target\nPURPOSE 1 Meet the government’s annual financing task while managing the\ntrade-offs between costs and risks\n1.1 Establish a debt 1.1.1 Annual debt management strategy: Prior to start\nmanagement formulate an annual debt management of fiscal year\nstrategy strategy and advise the Secretary to the\nTreasury with supporting analysis.\n Source: `annual-reports/2022-23.pdf (https://www.aofm.gov.au/sites/default/files/2023-10-19/AOFM%202022-23%20Annual%20Report_WEB.pdf)`\n- Result definitions for performance measures are as follows:\nMet The AOFM delivered against the performance measure.\n Source: `annual-reports/2022-23.pdf (https://www.aofm.gov.au/sites/default/files/2023-10-19/AOFM%202022-23%20Annual%20Report_WEB.pdf)`\n- [Page 33]\nPURPOSE 1\nTable 2: Summary of performance for Purpose 1\nPerformance measures 2022–23 Performance\nTarget Results\nKey Activity 1.1 Establish a debt management strategy:\n• consistent with a prudent sovereign debt management approach\n• that anticipates the broad market outlook and attendant risks\n• to meet the Budget financing task\n• to meet projected debt portfolio requirements (such as the need for\nnew maturities)\n• to effectively balance borrowing cost and portfolio risks.\n Source: `annual-reports/2022-23.pdf (https://www.aofm.gov.au/sites/default/files/2023-10-19/AOFM%202022-23%20Annual%20Report_WEB.pdf)`\n- Table 10: Summary of performance for Purpose 2\nPerformance measures 2022–23 Performance\nTarget Results\nKey Activity 2.1 Establish a liquidity management strategy:\n• that considers the broad outlook for funding market conditions\n• that defines an appropriate liquidity buffer\n• designed to maintain ready access to the Treasury Note market\n2.1.1 Annual liquidity management Prior to start of Met\nstrategy: formulate an annual liquidity fiscal year\nmanagement strategy and advise the\nSecretary to the Treasury with\nsupporting analysis.\n Source: `annual-reports/2022-23.pdf (https://www.aofm.gov.au/sites/default/files/2023-10-19/AOFM%202022-23%20Annual%20Report_WEB.pdf)`\n- [Page 80]\nPURPOSE 4\nPURPOSE 4\nPerformance for Key Activity 4.2\nIndicator 4.2.1 SFSF losses\nThe target for SFSF gross credit losses was met for 2022–23.\n Source: `annual-reports/2022-23.pdf (https://www.aofm.gov.au/sites/default/files/2023-10-19/AOFM%202022-23%20Annual%20Report_WEB.pdf)`\n- [Page 29]\nPerformance measures Target\nPURPOSE 2 Ensure the government can always meet its cash outlay\nrequirements\n2.1 Establish a 2.1.1 Annual liquidity management strategy: Prior to start\nliquidity formulate an annual liquidity management of fiscal year\nmanagement strategy and advise the Secretary to the\nstrategy Treasury with supporting analysis.\n Source: `annual-reports/2022-23.pdf (https://www.aofm.gov.au/sites/default/files/2023-10-19/AOFM%202022-23%20Annual%20Report_WEB.pdf)`\n- [Page 34]\nPURPOSE 1\nPerformance measures 2022–23 Performance\nTarget Results\nKey Activity 1.3 Settle transactions and coupon and redemption payments:\n• in a complete, timely and accurate manner.\n Source: `annual-reports/2022-23.pdf (https://www.aofm.gov.au/sites/default/files/2023-10-19/AOFM%202022-23%20Annual%20Report_WEB.pdf)`\n- [Page 35]\nPURPOSE 1\nPerformance for Key Activity 1.1\nIndicator 1.1.1 Annual debt management strategy\nThe target to formulate and advise the Secretary to the Treasury of the annual\ndebt management strategy prior to the beginning of the fiscal year was met.\n Source: `annual-reports/2022-23.pdf (https://www.aofm.gov.au/sites/default/files/2023-10-19/AOFM%202022-23%20Annual%20Report_WEB.pdf)`\n- [Page 40]\nPURPOSE 1\nPerformance for Key Activity 1.2\nIndicator 1.2.1 Term issuance\nA zero target for the difference between the actual Treasury Bond volume\nissued and that announced at the most recent Budget update was partially met.\n Source: `annual-reports/2022-23.pdf (https://www.aofm.gov.au/sites/default/files/2023-10-19/AOFM%202022-23%20Annual%20Report_WEB.pdf)`\n- [Page 42]\nPURPOSE 1\nIndicator 1.2.3 Tender coverage ratio\nThe target for the average tender coverage ratio to be above 2.5 was met.\n Source: `annual-reports/2022-23.pdf (https://www.aofm.gov.au/sites/default/files/2023-10-19/AOFM%202022-23%20Annual%20Report_WEB.pdf)`\n- [Page 44]\nPURPOSE 1\nPerformance for Key Activity 1.3\nIndicator 1.3.1 Settlement of AGS transactions\nThe target for settlement of AGS transactions was met.\n Source: `annual-reports/2022-23.pdf (https://www.aofm.gov.au/sites/default/files/2023-10-19/AOFM%202022-23%20Annual%20Report_WEB.pdf)`\n- Performance for Key Activity 2.1\nIndicator 2.1.1 Annual liquidity management strategy\nThe target to formulate and advise the Secretary to the Treasury of the liquidity\nmanagement strategy prior to the beginning of the 2022–23 financial year\nwas met.\n Source: `annual-reports/2022-23.pdf (https://www.aofm.gov.au/sites/default/files/2023-10-19/AOFM%202022-23%20Annual%20Report_WEB.pdf)`\n\n## Key Metrics\n\n| Values found | Evidence | Source |\n|---|---|---|\n| $1 million, $0.6 million, 1 million, 0.6 million | [Page 53]\nPURPOSE 1\nTable 8: Policy portfolios returns\nRevenue Book volume Effective yield\n2022–23 2021–22 2022–23 2021–22 2022–23 2021–22\n$ million $ million % per annum3\nContribution by instrument\nABSF investments1 18 3 245 99 7.35 3.00\nSFSF investments2 26 32 496 1,073 5.14 3.04\nState housing advances 79 83 1,340 1,420 5.86 5.85\nTotal 123 118 2,081 2,592 5.89 4.55\n1 ABSF investment income is before allowances for expected credit losses ($1 mil | `annual-reports/2022-23.pdf (https://www.aofm.gov.au/sites/default/files/2023-10-19/AOFM%202022-23%20Annual%20Report_WEB.pdf)` |\n| $20.4 billion, $18.3 billion, $851 billion, $828 billion, 20.4 billion, 18.3 billion | [Page 54]\nPURPOSE 1\nChart 10: Evolution of Treasury Bond benchmark yields\n% %\n5 5\n4 4\n3 3\n2 2\nJun 22 Jul 22 Aug 22 Sep 22 Oct 22 Nov 22 Dec 22 Jan 23 Feb 23 Mar 23 Apr 23 May 23 Jun 23\n3-year 10-year 30-year\nAppendix 1: Cost outcomes for the entire portfolio of\ndebt and assets administered by the AOFM\nThe net debt servicing cost of the portfolio managed by the AOFM was\n$20.4 billion in 2022–23 (2021–22: $18.3 billion) on an average book volume of | `annual-reports/2022-23.pdf (https://www.aofm.gov.au/sites/default/files/2023-10-19/AOFM%202022-23%20Annual%20Report_WEB.pdf)` |\n| $43 billion, 43 billion | Significant variances in assets\nA stronger fiscal position in 2022–23 led to a richer cash position as at\n30 June 2023 of $43 billion as compared to forecasts in the October 2022 Budget. | `annual-reports/2022-23.pdf (https://www.aofm.gov.au/sites/default/files/2023-10-19/AOFM%202022-23%20Annual%20Report_WEB.pdf)` |\n| $358,000 | Annual appropriations ($’000)\n2023 2022\nAnnual appropriations:\nOutputs (a) 16,737 16,513\nDepartmental capital budget 377 368\nPublic Governance, Performance and Accountability Act 2013:\nSection 74 – retained receipts 106 181\nTotal available for payment 17,220 17,062\nAppropriation applied (current and prior years) (13,194) (12,911)\nVariance 4,026 4,151\n(a) For 2022–23, $358,000 of departmental operating appropriations were withheld under section 51 | `annual-reports/2022-23.pdf (https://www.aofm.gov.au/sites/default/files/2023-10-19/AOFM%202022-23%20Annual%20Report_WEB.pdf)` |\n| $178 million, 178 million | Significant variances in expenses before re-measurements\nInterest expense for 2022–23 was $178 million lower than forecast in the 2022–23\nOctober Budget. | `annual-reports/2022-23.pdf (https://www.aofm.gov.au/sites/default/files/2023-10-19/AOFM%202022-23%20Annual%20Report_WEB.pdf)` |\n| $22.241 billion, $18.551 billion, $22.218 billion, $18.502 billion, 22.241 billion, 18.551 billion | Administered expenses totalled $22.241 billion (2021–22: $18.551 billion),\ncomprising primarily of interest expenses of $22.218 billion (2021–22:\n$18.502 billion) on AGS. | `annual-reports/2022-23.pdf (https://www.aofm.gov.au/sites/default/files/2023-10-19/AOFM%202022-23%20Annual%20Report_WEB.pdf)` |\n| $16.6 million, $16.8 million, $14.0 million, $13.4 million, 16.6 million, 16.8 million | This comprised revenue of $16.6 million\n(2021–22: $16.8 million) and expenses of $14.0 million (2021–22: $13.4 million). | `annual-reports/2022-23.pdf (https://www.aofm.gov.au/sites/default/files/2023-10-19/AOFM%202022-23%20Annual%20Report_WEB.pdf)` |\n| $696 million, 696 million | Significant variances in income before re-measurements\nInterest revenue for 2022–23 was $696 million higher than forecast in the October\n2022 Budget. | `annual-reports/2022-23.pdf (https://www.aofm.gov.au/sites/default/files/2023-10-19/AOFM%202022-23%20Annual%20Report_WEB.pdf)` |\n| $1.6 million, $0.5 million, 1.6 million, 0.5 million | Significant variances in the departmental financial statements\nDepartmental expenses for 2022–23 were lower than forecast due to lower\nstaffing costs and supplier costs of $1.6 million and $0.5 million respectively. | `annual-reports/2022-23.pdf (https://www.aofm.gov.au/sites/default/files/2023-10-19/AOFM%202022-23%20Annual%20Report_WEB.pdf)` |\n| $125 billion, $78.8 billion, 125 billion, 78.8 billion | Having initially announced a Treasury Bond\nprogram of $125 billion for 2022–23 (at Budget time in March 2022), the AOFM\nfinished the year having issued $78.8 billion. | `annual-reports/2022-23.pdf (https://www.aofm.gov.au/sites/default/files/2023-10-19/AOFM%202022-23%20Annual%20Report_WEB.pdf)` |\n| $78.8 billion, $125 billion, 78.8 billion, 125 billion | In 2022–23, the\nAOFM issued $78.8 billion of Treasury Bonds compared to initial guidance of\naround $125 billion when the 2022–23 Budget was announced. | `annual-reports/2022-23.pdf (https://www.aofm.gov.au/sites/default/files/2023-10-19/AOFM%202022-23%20Annual%20Report_WEB.pdf)` |\n| $95 billion, $80 billion, 95 billion, 80 billion | This guidance was\nrevised down to around $95 billion at the 2022–23 October Budget and further\nreduced to around $80 billion at the 2023–24 Budget in May. | `annual-reports/2022-23.pdf (https://www.aofm.gov.au/sites/default/files/2023-10-19/AOFM%202022-23%20Annual%20Report_WEB.pdf)` |\n\n## Key Achievements\n\n- The internal auditor completed 5 reviews in 2022–23, that included an\nassessment of:\n• implementation of and compliance with the Financial Risk Management Policy\n• design and operational effectiveness of the AOFM’s 2023–24 performance\nmeasures against the PGPA requirements\n• the AOFM’s risk culture maturity and changes relative to benchmark results\nfrom the risk culture survey completed in 2018–19\nPART 3: Management and Accountability | AOFM Annual Report 2022–23 83\n Source: `annual-reports/2022-23.pdf (https://www.aofm.gov.au/sites/default/files/2023-10-19/AOFM%202022-23%20Annual%20Report_WEB.pdf)`\n- Transactions completed during the period\nNumber Face value ($m)\n2023 2022 2023 2022\nOvernight:\nTreasury Bonds 33 88 1,297 2,612\nTreasury Indexed Bonds 104 124 1,101 1,443\nIntra-day:\nTreasury Bonds – - – -\nTreasury Indexed Bonds – - – -\nTotal 137 212 2,398 4,055\n18 transactions for $206.7 million of Treasury Bonds and Treasury Indexed Bonds\nwere open at the beginning of the year.\n Source: `annual-reports/2022-23.pdf (https://www.aofm.gov.au/sites/default/files/2023-10-19/AOFM%202022-23%20Annual%20Report_WEB.pdf)`\n- Planned issuance of Treasury Indexed Bonds in 2025-26 remains between $2 billion and $3 billion (of which $1.5 billion has been completed).\n Source: `pages/media-releases-index__04.html (http://www.aofm.gov.au/program/issuance-program)`\n- [Page 28]\nTable 1: Performance measures and targets\nPerformance measures Target\nPURPOSE 1 Meet the government’s annual financing task while managing the\ntrade-offs between costs and risks\n1.1 Establish a debt 1.1.1 Annual debt management strategy: Prior to start\nmanagement formulate an annual debt management of fiscal year\nstrategy strategy and advise the Secretary to the\nTreasury with supporting analysis.\n Source: `annual-reports/2022-23.pdf (https://www.aofm.gov.au/sites/default/files/2023-10-19/AOFM%202022-23%20Annual%20Report_WEB.pdf)`\n- PURPOSE 3 Conduct market facing activities in a manner that supports\na well-functioning AGS market\n3.1 Communicate 3.1.1 Market commitments: the number of times Zero\nAOFM operations the AOFM failed to conduct issuance\nclearly and operations consistent with prior market\nconsistently to the announcements.\nmarket\n3.2 Conduct a market 3.2.1 Investor publications: the number of times At least\nengagement investor targeted information publications are twice a year\nprogram updated and made available on the AOFM\nwebsite.\n Source: `annual-reports/2022-23.pdf (https://www.aofm.gov.au/sites/default/files/2023-10-19/AOFM%202022-23%20Annual%20Report_WEB.pdf)`\n- The RBA’s preferred inflation measure moved from 5.0% in June 2022 to a high of\n6.9% in December 2022, significantly more than the 2.0–3.0% target band.\n Source: `annual-reports/2022-23.pdf (https://www.aofm.gov.au/sites/default/files/2023-10-19/AOFM%202022-23%20Annual%20Report_WEB.pdf)`\n- Having initially announced a Treasury Bond\nprogram of $125 billion for 2022–23 (at Budget time in March 2022), the AOFM\nfinished the year having issued $78.8 billion.\n Source: `annual-reports/2022-23.pdf (https://www.aofm.gov.au/sites/default/files/2023-10-19/AOFM%202022-23%20Annual%20Report_WEB.pdf)`\n- [Page 31]\nPURPOSE 1\nPURPOSE 1\nPERFORMANCE ASSESSMENT:\nPURPOSE 1\nMeet the government’s annual financing task while\nmanaging the trade-offs between costs and risks\nPART 2: Performance statement | AOFM Annual Report 2022–23 23\n Source: `annual-reports/2022-23.pdf (https://www.aofm.gov.au/sites/default/files/2023-10-19/AOFM%202022-23%20Annual%20Report_WEB.pdf)`\n- [Page 33]\nPURPOSE 1\nTable 2: Summary of performance for Purpose 1\nPerformance measures 2022–23 Performance\nTarget Results\nKey Activity 1.1 Establish a debt management strategy:\n• consistent with a prudent sovereign debt management approach\n• that anticipates the broad market outlook and attendant risks\n• to meet the Budget financing task\n• to meet projected debt portfolio requirements (such as the need for\nnew maturities)\n• to effectively balance borrowing cost and portfolio risks.\n Source: `annual-reports/2022-23.pdf (https://www.aofm.gov.au/sites/default/files/2023-10-19/AOFM%202022-23%20Annual%20Report_WEB.pdf)`\n- [Page 39]\nPURPOSE 1\nChart 4 shows the amount outstanding in each of the 7 TIB lines at 30 June 2023\nand the allocation of issuance during the 2022–23 year.\n Source: `annual-reports/2022-23.pdf (https://www.aofm.gov.au/sites/default/files/2023-10-19/AOFM%202022-23%20Annual%20Report_WEB.pdf)`\n- In 2022–23, the\nAOFM issued $78.8 billion of Treasury Bonds compared to initial guidance of\naround $125 billion when the 2022–23 Budget was announced.\n Source: `annual-reports/2022-23.pdf (https://www.aofm.gov.au/sites/default/files/2023-10-19/AOFM%202022-23%20Annual%20Report_WEB.pdf)`\n- This guidance was\nrevised down to around $95 billion at the 2022–23 October Budget and further\nreduced to around $80 billion at the 2023–24 Budget in May.\n Source: `annual-reports/2022-23.pdf (https://www.aofm.gov.au/sites/default/files/2023-10-19/AOFM%202022-23%20Annual%20Report_WEB.pdf)`\n\n## Key Issues, Risks, and Recommendations\n\n- The responsibilities and functions of the audit and risk committee\nare outlined in the Audit and Risk Committee Charter.11\nKey activities of the committee during 2022–23 included:\n• Advising on preparation and review of the AOFM’s financial statements and\nannual performance statement\n• Considering developments in the AOFM’s risk profile and compliance\nperformance, as reported through quarterly risk and assurance reports,\nincluding internal audit\n• Reviewing the appropriateness of fraud control strategies and monitoring\nactivities\n• Monitoring implementation of audit recommendations.\n Source: `annual-reports/2022-23.pdf (https://www.aofm.gov.au/sites/default/files/2023-10-19/AOFM%202022-23%20Annual%20Report_WEB.pdf)`\n- [Page 211]\nGLOSSARY OF ABBREVIATIONS\nAAIs Accountable Authority Instructions\nAASB Australian Accounting Standards Board\nABE Australian Business Economists\nABS Asset-Backed Securities\nABSF Australian Business Securitisation Fund\nABSF Act Australian Business Securitisation Fund Act 2019\nACT Australian Capital Territory\nADB Asian Development Bank\nAFMA Australian Financial Markets Association\nAGS Australian Government Securities\nANAO Australian National Audit Office\nANZ Australia and New Zealand Banking Group Limited\nAOFM Australian Office of Financial Management\nAPS Australian Public Service\nAPSC Australian Public Service Commission\nASF Australian Securitisation Forum\nASX Australian Securities Exchange\nATO Australian Taxation Office\nAUD Australian Dollar\nBA Bachelor of Arts\nBBSW Bank Bill Swap Rate\nBC Business Continuity\nBDS Business and Data Systems\nBEc Bachelor of Economics\n Source: `annual-reports/2022-23.pdf (https://www.aofm.gov.au/sites/default/files/2023-10-19/AOFM%202022-23%20Annual%20Report_WEB.pdf)`\n- 11 The Audit and Risk Committee Charter can be accessed through the following link:\nhttps://www.aofm.gov.au/about/compliance-reports/audit-and-risk-committee-charter\n78 PART 3: Management and Accountability | AOFM Annual Report 2022–23\n Source: `annual-reports/2022-23.pdf (https://www.aofm.gov.au/sites/default/files/2023-10-19/AOFM%202022-23%20Annual%20Report_WEB.pdf)`\n- [Page 87]\nTable 16: Audit and Risk Committee for 2022-23\nMembers Qualifications, Attendance Remuneration\nskills and experience (a)\nStephen Knight, BA, FAICD.\n Source: `annual-reports/2022-23.pdf (https://www.aofm.gov.au/sites/default/files/2023-10-19/AOFM%202022-23%20Annual%20Report_WEB.pdf)`\n- [Page 28]\nTable 1: Performance measures and targets\nPerformance measures Target\nPURPOSE 1 Meet the government’s annual financing task while managing the\ntrade-offs between costs and risks\n1.1 Establish a debt 1.1.1 Annual debt management strategy: Prior to start\nmanagement formulate an annual debt management of fiscal year\nstrategy strategy and advise the Secretary to the\nTreasury with supporting analysis.\n Source: `annual-reports/2022-23.pdf (https://www.aofm.gov.au/sites/default/files/2023-10-19/AOFM%202022-23%20Annual%20Report_WEB.pdf)`\n- [Page 31]\nPURPOSE 1\nPURPOSE 1\nPERFORMANCE ASSESSMENT:\nPURPOSE 1\nMeet the government’s annual financing task while\nmanaging the trade-offs between costs and risks\nPART 2: Performance statement | AOFM Annual Report 2022–23 23\n Source: `annual-reports/2022-23.pdf (https://www.aofm.gov.au/sites/default/files/2023-10-19/AOFM%202022-23%20Annual%20Report_WEB.pdf)`\n- [Page 33]\nPURPOSE 1\nTable 2: Summary of performance for Purpose 1\nPerformance measures 2022–23 Performance\nTarget Results\nKey Activity 1.1 Establish a debt management strategy:\n• consistent with a prudent sovereign debt management approach\n• that anticipates the broad market outlook and attendant risks\n• to meet the Budget financing task\n• to meet projected debt portfolio requirements (such as the need for\nnew maturities)\n• to effectively balance borrowing cost and portfolio risks.\n Source: `annual-reports/2022-23.pdf (https://www.aofm.gov.au/sites/default/files/2023-10-19/AOFM%202022-23%20Annual%20Report_WEB.pdf)`\n- A liquidity buffer is maintained to manage the forecasting risk associated with\nlarge, unexpected cash requirements (or shortfalls in revenue collections) and the\nfunding risk associated with sudden and severe market constraints on issuance.\n Source: `annual-reports/2022-23.pdf (https://www.aofm.gov.au/sites/default/files/2023-10-19/AOFM%202022-23%20Annual%20Report_WEB.pdf)`\n- [Page 60]\nPURPOSE 2\nThe volume of T-Notes on issue during 2022–23 ranged from $24 billion to\n$40 billion.\n Source: `annual-reports/2022-23.pdf (https://www.aofm.gov.au/sites/default/files/2023-10-19/AOFM%202022-23%20Annual%20Report_WEB.pdf)`\n- Table 12: Summary of investor relations activities in 2022–23\nActivity Details\nOffshore investor campaigns 58 meetings\nDomestic investor campaigns 28 meetings\nAd hoc meetings 3 meetings\nPresentations: large engagements 5 presentations (ABE speech, the AOFM Tokyo Forum,\nADB Regional Reserve Managers conference, bank\ninvestor conferences)\nRoundtable discussions 2 Roundtables (KangaNews roundtable on markets\nissues, the AOFM TIBs Roundtable)\nThe AOFM’s staff participating in CEO, Head of Investor Relations, Head of Funding and\ninvestor relations.\n Source: `annual-reports/2022-23.pdf (https://www.aofm.gov.au/sites/default/files/2023-10-19/AOFM%202022-23%20Annual%20Report_WEB.pdf)`\n- The audit and risk committee met 4 times during 2022–23 and conducted\nin-camera sessions with internal and external auditors during the year.\n Source: `annual-reports/2022-23.pdf (https://www.aofm.gov.au/sites/default/files/2023-10-19/AOFM%202022-23%20Annual%20Report_WEB.pdf)`\n- Broad experience in policy\ndevelopment, governance and risk\nmanagement.\n(a) Remuneration includes superannuation and is GST exclusive\n(b) Appointed as member on 1 November 2022\n(c) Includes fees for attendance at an induction session\n(d) Term as member ended on 31 August 2022\nPART 3: Management and Accountability | AOFM Annual Report 2022–23 79\n Source: `annual-reports/2022-23.pdf (https://www.aofm.gov.au/sites/default/files/2023-10-19/AOFM%202022-23%20Annual%20Report_WEB.pdf)`\n- The internal auditor completed 5 reviews in 2022–23, that included an\nassessment of:\n• implementation of and compliance with the Financial Risk Management Policy\n• design and operational effectiveness of the AOFM’s 2023–24 performance\nmeasures against the PGPA requirements\n• the AOFM’s risk culture maturity and changes relative to benchmark results\nfrom the risk culture survey completed in 2018–19\nPART 3: Management and Accountability | AOFM Annual Report 2022–23 83\n Source: `annual-reports/2022-23.pdf (https://www.aofm.gov.au/sites/default/files/2023-10-19/AOFM%202022-23%20Annual%20Report_WEB.pdf)`\n- Administered Schedules Page\nComprehensive Income 113\nAssets and liabilities 115\nReconciliation 118\nCash flows 119\nNotes\n1: Financial risk management 121\n2: Treasury Bonds 132\n3: Treasury Indexed Bonds 134\n4: Treasury Notes 137\n5.\n Source: `annual-reports/2022-23.pdf (https://www.aofm.gov.au/sites/default/files/2023-10-19/AOFM%202022-23%20Annual%20Report_WEB.pdf)`\n\n## Corporate Values and Operating Culture\n\n- [Page 212]\nFCA Federal Court of Australia\nFIPAA Fellow of Institute of Public Administration Australia\nFOI Freedom of Information\nFOI Act Freedom of Information Act 1982\nfSPV Forbearance Special Purpose Vehicle\nFTE Full-time equivalent\nFV Face value\nGFC Global Financial Crisis\nGST Goods and Services Tax\nIMF International Monetary Fund\nIPS Information Publication Scheme\nIT Information Technology\nKMP Key Management Personnel\nLS Act Loan Securities Act 1919\nLTDP Long-Term Debt Portfolio\nMBA Master of Business Administration\nMYEFO Mid-Year Economic and Fiscal Outlook\nNAB National Australia Bank\nNSW New South Wales\nNT Northern Territory\nOECD Organisation for Economic Cooperation and Development\nOIS Overnight Indexed Swap\nOPA Official Public Account\nPBS Portfolio Budget Statement\nPGPA Public Governance, Performance and Accountability\n Source: `annual-reports/2022-23.pdf (https://www.aofm.gov.au/sites/default/files/2023-10-19/AOFM%202022-23%20Annual%20Report_WEB.pdf)`\n- [Page 158]\nThe following administered special appropriations are available but were not used\nby the AOFM during 2022–23 and 2021–22:\n• Australian National Railways Commission Sale Act 1997, sec 67AW – Purpose:\npayment of principal and interest on former debts of the National Railways\nCommission.\n• Loans Redemption and Conversion Act 1921, sec 5 – Purpose: payment of\nprincipal, interest, and costs of converting loans made in accordance with\nthe Act.\n• Loans Securities Act 1919, sec 4 – Purpose: payment of principal and interest on\nmoney raised by stock issued under the Act.\n• Loans Securities Act 1919, sec 5B – Purpose: payment of money under a swap or\nother financial arrangement and any expenditure in connection with the\nnegotiation, management, or service of, or a repayment under, any such\nagreement.\n• Moomba-Sydney Pipeline System Sale Act 1994, sec 19 – Purpose: payment of\n Source: `annual-reports/2022-23.pdf (https://www.aofm.gov.au/sites/default/files/2023-10-19/AOFM%202022-23%20Annual%20Report_WEB.pdf)`\n- Its findings provide a baseline for enhancing service delivery and effectiveness.\nmini-card, small-h-img\ntrue\nsec-spacing\nsection-none\nsec-spacing-bottom\nsection-padding-between\nstyle\ndefault\nCONNECT\nWITH US\nfalse\nX\nlp-x\nhttps://x.com/wbg_gov\nSubscribe to our monthly newsletter\nWorld Bank Governance Global Department\nThe latest news, publications, and events on institutions, good governance, GovTech, open government, procurement, anticorruption, public finance, accountability & more.\nfalse\nGovernance Update|SVC123\nfalse\nTopic Expert\nArturo Herrera\nhttps://www.worldbank.org/en/about/people/a/arturo-herrera-gutierrez\ndefault alt\nDirector, Governance Global Department, World Bank\nmini-card\nmini-card\nView All Experts\nGovernance Contact\nLara Saade\nlsaade@worldbank.org\nsec-swoosh\nsec-swoosh-type11\nstyle\ngrid, bg-neutrals-20, stay-connected\nsec-spacing\nsection-none\nsec-spacing-bottom\n Source: `global-intelligence/source-text/association-worldbank.org-governance.txt`\n- [Page 43]\nPURPOSE 1\nTable 5: Summary of Treasury Note tender results\nMaturity (months) Face value amount Average spread to Average times\nallocated ($m) OIS (basis points) covered\n0–3 23,500 -4.94 5.87\n3–6 71,500 -3.11 4.86\n6+ 1,500 -1.57 3.77\nTotal/Average 96,500 -3.47 5.09\nKey Activity 1.3: Settle transactions and coupon and\nredemption payments\nAustraclear, a licensed clearing and settlement facility under the Corporations Act\n2001 (Cth), is an electronic securities depository system for Australian dollar\ndenominated debt securities and is central to the settlement of AGS transactions.\n Source: `annual-reports/2022-23.pdf (https://www.aofm.gov.au/sites/default/files/2023-10-19/AOFM%202022-23%20Annual%20Report_WEB.pdf)`\n- Broad experience in policy\ndevelopment, governance and risk\nmanagement.\n(a) Remuneration includes superannuation and is GST exclusive\n(b) Appointed as member on 1 November 2022\n(c) Includes fees for attendance at an induction session\n(d) Term as member ended on 31 August 2022\nPART 3: Management and Accountability | AOFM Annual Report 2022–23 79\n Source: `annual-reports/2022-23.pdf (https://www.aofm.gov.au/sites/default/files/2023-10-19/AOFM%202022-23%20Annual%20Report_WEB.pdf)`\n- The internal auditor completed 5 reviews in 2022–23, that included an\nassessment of:\n• implementation of and compliance with the Financial Risk Management Policy\n• design and operational effectiveness of the AOFM’s 2023–24 performance\nmeasures against the PGPA requirements\n• the AOFM’s risk culture maturity and changes relative to benchmark results\nfrom the risk culture survey completed in 2018–19\nPART 3: Management and Accountability | AOFM Annual Report 2022–23 83\n Source: `annual-reports/2022-23.pdf (https://www.aofm.gov.au/sites/default/files/2023-10-19/AOFM%202022-23%20Annual%20Report_WEB.pdf)`\n- Remuneration of Staff\nAll non-SES staff had terms and conditions set during 2022–23 by the AOFM\nEnterprise Agreement 2015–2018 and all staff determinations on salary rates made\nunder subsection 24(1) of the Public Service Act by the CEO.\n Source: `annual-reports/2022-23.pdf (https://www.aofm.gov.au/sites/default/files/2023-10-19/AOFM%202022-23%20Annual%20Report_WEB.pdf)`\n- [Page 104]\nOther highly-paid staff\nTable 25: Remuneration for highly paid staff\n)$\n(\ns t\nif\ne n\n)$\n(\nt\nn e m\ne b\nm r e\nt t r o\nm y\no lp\nt s\nm\ne -\ng n o\nl r e h\nr e t\n-\nn\no it a\nn im r\n)$ ( s\nt if e n\n)$ ( s\nt if e n\n)$\n( la t\nh\nS\no\nP\nt\nO\ne\nT\ne\nb\ne\nb\no\nT\ns s\nd n a b n o it a r\ne n u m e R r e b m u N\ny r a la s e s a b\ne g a r e v A\ne v a e l la u\nn n a d n a\ns u n o b\ne g a r e v A\nt\nif e n e b r e h t o\ne g a r e v A\nr e p u s\ne g a r e v A\ng n o l\ne g a r e v A\ne v a e\nl e c iv r e s\nt\nif e n e b r e h t o\ne g a r e v A\nn o it a n im r e t\ne g a r e v A s t if e n e b )$ ( la t o T\n245,001 to 270,000 2 213,749 - - 35,839 7,906 - - 257,494\n270,001 to 295,000 4 235,398 - - 38,997 7,251 - - 281,646\n295,001 to 320,000 1 240,656 - - 45,691 12,086 - - 298,433\n320,001 to 345,000 1 279,678 - - 53,159 10,075 - - 342,912\n370,001 to 395,0000 1 307,321 - - 56,984 10,434 - - 374,739\n Source: `annual-reports/2022-23.pdf (https://www.aofm.gov.au/sites/default/files/2023-10-19/AOFM%202022-23%20Annual%20Report_WEB.pdf)`\n\n## Global Ideas and Case Study Inputs\n\nGlobal source texts are available for later idea synthesis:\n- `global-intelligence/source-text/association-worldbank.org-governance.txt`\n- `global-intelligence/source-text/association-worldbank.org-public-financial-management.txt`\n- `global-intelligence/source-text/consulting-deloitte.com-government-public.txt`\n- `global-intelligence/source-text/university-ash.harvard.edu-Harvard-Kennedy-School-Ash-Center.txt`\n\n## Source Artifacts Used\n\n- `annual-reports/2022-23.pdf` - annual-reports - https://www.aofm.gov.au/sites/default/files/2023-10-19/AOFM%202022-23%20Annual%20Report_WEB.pdf\n- `pages/about.html` - pages - http://www.aofm.gov.au/about\n- `pages/announcements-index.html` - pages - http://www.aofm.gov.au/publications/speeches\n- `pages/announcements-index__10.html` - pages - http://www.aofm.gov.au/publications/speeches/opening-statement-economics-legislation-committee-1\n- `pages/announcements-index__11.html` - pages - http://www.aofm.gov.au/publications/speeches/opening-statement-economics-legislation-committee-0\n- `pages/announcements-index__12.html` - pages - http://www.aofm.gov.au/publications/speeches/steady-amid-storm\n- `pages/announcements-index__13.html` - pages - http://www.aofm.gov.au/publications/speeches/australian-government-fixed-income-forum-tokyo-2025\n- `pages/announcements-index__14.html` - pages - http://www.aofm.gov.au/publications/speeches/50-shades-greener\n- `pages/announcements-index__15.html` - pages - http://www.aofm.gov.au/publications/speeches/opening-statement-economics-legislation-committee\n- `pages/announcements-index__16.html` - pages - http://www.aofm.gov.au/publications/speeches/break-weather\n- `pages/announcements-index__17.html` - pages - http://www.aofm.gov.au/publications/speeches/australian-government-fixed-income-forum-tokyo-2023\n- `pages/announcements-index__18.html` - pages - http://www.aofm.gov.au/publications/speeches/beyond-crisis-outlook-aofm-issuance\n- `pages/announcements-index__19.html` - pages - http://www.aofm.gov.au/publications/speeches/absfsfsf-funding-update-afia-webinar\n- `pages/announcements-index__20.html` - pages - http://www.aofm.gov.au/publications/speeches/last-year-not-just-one-remember-one-learn-sydney\n- `pages/announcements-index__21.html` - pages - http://www.aofm.gov.au/publications/speeches/how-did-we-get-here-and-whats-next-abe-webinar\n- `pages/announcements-index__22.html` - pages - http://www.aofm.gov.au/publications/speeches/absf-info-sessions\n- `pages/announcements-index__23.html` - pages - http://www.aofm.gov.au/publications/speeches/tough-times-easy-task-sydney\n- `pages/announcements-index__24.html` - pages - http://www.aofm.gov.au/publications/speeches/aofms-thoughts-sovereign-debt-management-perth\n- `pages/announcements-index__25.html` - pages - http://www.aofm.gov.au/publications/speeches/what-can-markets-expect-aofm-after-year-sydney\n- `pages/announcements-index__26.html` - pages - http://www.aofm.gov.au/publications/speeches/changing-issuance-and-debt-management-landscape-what-matters-most-next-sydney\n- `pages/announcements-index__27.html` - pages - http://www.aofm.gov.au/publications/speeches/kanganews-seminar-sydney\n- `pages/annual-reports-index.html` - pages - http://aofm.gov.au/publications/annual-reports/\n- `pages/annual-reports-index__00.html` - pages - https://www.aofm.gov.au/media/1355\n- `pages/annual-reports-index__01.html` - pages - https://www.aofm.gov.au/media/1354\n- `pages/annual-reports-index__02.html` - pages - https://www.aofm.gov.au/sites/default/files/2023-10-19/AOFM%202022-23%20Annual%20Report_WEB.pdf\n- `pages/homepage.html` - pages - http://www.aofm.gov.au\n- `pages/media-releases-index.html` - pages - http://www.aofm.gov.au/publications/media-releases\n- `pages/media-releases-index__03.html` - pages - http://www.aofm.gov.au/publications/media-releases\n- `pages/media-releases-index__04.html` - pages - http://www.aofm.gov.au/program/issuance-program\n- `pages/media-releases-index__05.html` - pages - http://www.aofm.gov.au/publications/speeches\n- `pages/media-releases-index__06.html` - pages - http://www.aofm.gov.au/publications/media-releases/aofm-welcomes-judgement-anz-case\n- `pages/media-releases-index__07.html` - pages - http://www.aofm.gov.au/publications/media-releases/independent-review-finds-aofm-delivering-its-core-functions-effectively\n- `pages/media-releases-index__08.html` - pages - https://www.aofm.gov.au/publications/media-releases/independent-review-finds-aofm-delivering-its-core-functions-effectively\n- `pages/media-releases-index__09.html` - pages - http://www.aofm.gov.au/media-releases/government-debt-manager-outlines-actions-strengthen-market-integrity-following-anz-report\n- `pages/publications-index.html` - pages - http://www.aofm.gov.au/publications\n- `global-intelligence/source-text/association-worldbank.org-governance.txt` - global-intelligence - local file\n- `global-intelligence/source-text/association-worldbank.org-public-financial-management.txt` - global-intelligence - local file\n- `global-intelligence/source-text/consulting-deloitte.com-government-public.txt` - global-intelligence - local file\n- `global-intelligence/source-text/university-ash.harvard.edu-Harvard-Kennedy-School-Ash-Center.txt` - global-intelligence - local file\n\n## Gaps To Fix\n\n- No corporate plan text source found.", "legislation_md": "# Australian Office of Financial Management — Legislation Administered\n\n**Generated**: 2026-05-13T02:53:45+00:00\n**Source**: LLM extraction (nova-micro) from latest annual report and corporate plan\n**Tokens**: 21,197 in / 594 out · cost: $0.00083\n\n> Acts and instruments this entity administers or has primary responsibility for.\n> Excludes generic gov-wide compliance Acts (PGPA, Public Service Act, FOI, Privacy, etc.).\n\n**Source documents fed to the model**:\n- Annual report: `annual-reports\\2022-23.txt`\n- Corporate plan: `(none)`\n\n## 6 laws administered\n\n| Title | Year | Type | What this entity does under it |\n|---|---|---|---|\n| [Australian Government Securities Act](https://www.legislation.gov.au/search?query=Australian+Government+Securities+Act+1914) | 1914 | Act | The AOFM manages debt financing, the cash portfolio, and investment programs for the Australian Government. |\n| [Commonwealth Inscribed Stock Act 1911](https://www.legislation.gov.au/search?query=Commonwealth+Inscribed+Stock+Act+1911) | 1911 | Act | The AOFM manages the issuance and management of government debt. |\n| [Financial Agreement Act 1994](https://www.legislation.gov.au/search?query=Financial+Agreement+Act+1994) | 1994 | Act | The AOFM manages the issuance and management of government debt. |\n| [Loan Securities Act 1919](https://www.legislation.gov.au/search?query=Loan+Securities+Act+1919) | 1919 | Act | The AOFM manages the issuance and management of government debt. |\n| [Australian Business Securitisation Fund Act 2019](https://www.legislation.gov.au/search?query=Australian+Business+Securitisation+Fund+Act+2019) | 2019 | Act | The AOFM manages the Australian Business Securitisation Fund (ABSF) to promote the development of and increase competition within the SME lending market. |\n| [Structured Finance Support (Coronavirus Economic Response Package) Act 2020](https://www.legislation.gov.au/search?query=Structured+Finance+Support+(Coronavirus+Economic+Response+Package)+Act+2020) | 2020 | Act | The AOFM manages the Structured Finance Support Fund (SFSF) to support the wholesale structured finance market. |", "global_initiatives_md": "# Australian Office of Financial Management — Global Initiatives Catalogue\n\n## Focus areas\n- Funding the government’s expenditure needs\n- Raising debt from financial markets\n- Supporting the functioning of Australia’s sovereign debt market\n- Fulfilling the Australian Business Securitisation Fund (ABSF) and the Structured Finance Support Fund (SFSF) mandates\n\n## Funding the government’s expenditure needs\n\n### Global Sovereign Debt Management Framework\n**Jurisdiction**: OECD\n**Run by**: OECD\n**Year**: Established in 1967\n**Status**: Active\n**What it does (2–3 sentences)**: The OECD provides a comprehensive framework for sovereign debt management, including strategies for issuing and managing debt to fund government expenditures.\n**Why it matters to Australia (1–2 sentences)**: Australia can adopt best practices from the OECD’s debt management framework to optimize its fiscal strategy and minimize costs.\n**Find more**: [Search OECD Sovereign Debt Management](https://www.google.com/search?q=OECD+sovereign+debt+management+framework)\n\n### Treasury Inflation-Protected Securities (TIPS)\n**Jurisdiction**: US\n**Run by**: U.S. Department of the Treasury\n**Year**: Introduced in 1997\n**Status**: Active\n**What it does (2–3 sentences)**: TIPS are a type of U.S. Treasury security that have principal value adjusted for inflation, providing a hedge against inflation for investors.\n**Why it matters to Australia (1–2 sentences)**: Understanding TIPS could help Australia explore inflation-linked securities to manage inflation risks in its debt portfolio.\n**Find more**: [Search TIPS](https://www.google.com/search?q=Treasury+Inflation-Protected+Securities)\n\n### European Central Bank (ECB) Debt Issuance\n**Jurisdiction**: EU\n**Run by**: European Central Bank\n**Year**: Established in 1998\n**Status**: Active\n**What it does (2–3 sentences)**: The ECB issues sovereign bonds to manage the Eurozone’s debt and stabilize financial markets.\n**Why it matters to Australia (1–2 sentences)**: Australia can learn from the ECB’s approach to sovereign debt issuance and market stabilization.\n**Find more**: [Search ECB Debt Issuance](https://www.google.com/search?q=European+Central+Bank+debt+issuance)\n\n## Raising debt from financial markets\n\n### Canadian Government Bond Program\n**Jurisdiction**: Canada\n**Run by**: Bank of Canada\n**Year**: Established in 1935\n**Status**: Active\n**What it does (2–3 sentences)**: The Bank of Canada manages the issuance and trading of government bonds to raise funds from financial markets.\n**Why it matters to Australia (1–2 sentences)**: Australia can benchmark its bond issuance strategies against Canada’s successful government bond program.\n**Find more**: [Search Canadian Government Bond Program](https://www.google.com/search?q=Canadian+Government+Bond+Program)\n\n### New Zealand Government Debt Management\n**Jurisdiction**: New Zealand\n**Run by**: Reserve Bank of New Zealand\n**Year**: Established in 1934\n**Status**: Active\n**What it does (2–3 sentences)**: The Reserve Bank of New Zealand manages the issuance and trading of government debt to raise funds efficiently.\n**Why it matters to Australia (1–2 sentences)**: Australia can adopt New Zealand’s debt management techniques to optimize its borrowing from financial markets.\n**Find more**: [Search New Zealand Government Debt Management](https://www.google.com/search?q=New+Zealand+Government+Debt+Management)\n\n## Supporting the functioning of Australia’s sovereign debt market\n\n### UK Gilts Market\n**Jurisdiction**: UK\n**Run by**: UK Debt Management Office (DMO)\n**Year**: Established in 1998\n**Status**: Active\n**What it does (2–3 sentences)**: The DMO manages the UK’s government bond market, ensuring liquidity and stability through efficient issuance and trading practices.\n**Why it matters to Australia (1–2 sentences)**: Australia can learn from the UK’s Gilts market to enhance the efficiency and stability of its own sovereign debt market.\n**Find more**: [Search UK Gilts Market](https://www.google.com/search?q=UK+Gilts+Market)\n\n### Singapore Government Securities Market\n**Jurisdiction**: Singapore\n**Run by**: Monetary Authority of Singapore (MAS)\n**Year**: Established in 1994\n**Status**: Active\n**What it does (2–3 sentences)**: The MAS manages Singapore’s government securities market to ensure liquidity and stability through transparent issuance and trading practices.\n**Why it matters to Australia (1–2 sentences)**: Australia can adopt Singapore’s best practices for managing a well-functioning sovereign debt market.\n**Find more**: [Search Singapore Government Securities Market](https://www.google.com/search?q=Singapore+Government+Securities+Market)\n\n## Fulfilling the Australian Business Securitisation Fund (ABSF) and the Structured Finance Support Fund (SFSF) mandates\n\n### US Asset-Backed Securities Market\n**Jurisdiction**: US\n**Run by**: U.S. Department of the Treasury\n**Year**: Established in the 1980s\n**Status**: Active\n**What it does (2–3 sentences)**: The U.S. Treasury manages asset-backed securities to support the structured finance market, providing liquidity and stability.\n**Why it matters to Australia (1–2 sentences)**: Australia can learn from the U.S. approach to asset-backed securities to better fulfill its ABSF and SFSF mandates.\n**Find more**: [Search US Asset-Backed Securities Market](https://www.google.com/search?q=US+Asset-Backed+Securities+Market)\n\n### European Securitisation Regulation\n**Jurisdiction**: EU\n**Run by**: European Securities and Markets Authority (ESMA)\n**Year**: Established in 2011\n**Status**: Active\n**What it does (2–3 sentences)**: ESMA regulates securitisation activities across the EU to ensure market stability and investor protection.\n**Why it matters to Australia (1–2 sentences)**: Australia can adopt EU’s regulatory framework for securitisation to enhance the integrity of its ABSF and SFSF programs.\n**Find more**: [Search European Securitisation Regulation](https://www.google.com/search?q=European+Securitisation+Regulation)\n\n*Note: These are LLM-knowledge claims, not scraped sources — verify before citing publicly.*", "strategy": { "reporting_period": "2024-25", "corporate_plan_period": "2025-26", "vision": null, "vision_source_page": null, "purposes": "The AOFM needs to fulfil 4 key purposes:\n1. Meet the government’s annual financing task while managing the trade-offs between costs and risks.\n2. Ensure the government can always meet its cash outlay requirements.\n3. Conduct market-facing activities in a manner that supports a well-functioning AGS market.\n4. Meet the priorities of the ABSF and SFSF. [AR p.7]", "purposes_source_page": 7, "how_we_deliver": "The AOFM manages debt financing, the cash portfolio, and investment programs for the Australian Government. We are the government’s sovereign debt manager, responsible for issuing and managing the government’s debt and cash balances. [AR p.6]", "how_we_deliver_source_page": 6, "government_priorities": [ { "text": "Meet the government’s annual financing task while managing the trade-offs between costs and risks", "source_page": 20 }, { "text": "Ensure the government can always meet its cash outlay requirements", "source_page": 21 }, { "text": "Conduct market facing activities in a manner that supports a well-functioning AGS market", "source_page": 21 }, { "text": "Meet the priorities of the ABSF and the SFSF", "source_page": 21 } ], "outcomes": [ { "name": "Outcome 1: Advancement of macroeconomic growth and stability, and the effective operation of financial markets", "description": "The AOFM’s role in financing the Budget\nThe Australian Government Budget is usually released in May each year for the financial year commencing on 1 July and 3 forward years. The Budget sets out the government’s fiscal outlook and budget position, reflecting government policy decisions and assumptions about the performance of the domestic and global economies. The Budget for the 2022–23 financial year was released in March 2022 and a secondary Budget was released in October 2022, reflecting the change in government.\n\nDuring the Budget process, the AOFM is given an estimate of the annual financing task for the Budget year and forward years. The annual financing task for the Budget year together with an (AOFM-formulated) annual debt management strategy is central to determining the size and nature of the annual issuance program.\n\nTypically, in December each year the government publishes a Budget update, the Mid-Year Economic and Fiscal Outlook (MYEFO). At this point, the AOFM updates its issuance program for the Budget year. [AR p.8]", "key_activities": [ "Establish a debt management strategy", "Execute the debt issuance program", "Settle transactions and coupon and redemption payments", "Monitor costs and risks of the portfolio of assets and liabilities" ], "source_page": 8 } ], "values": [ "Trust", "Excellence", "Diversity" ], "values_framework_name": null, "kpi_targets_2025_26": [ { "code": "CCE01", "measure": "Annual debt management strategy", "target": "Prior to start of fiscal year", "source_page": 14 }, { "code": "CCE02", "measure": "Term issuance", "target": "Zero shortfall in volume in dollar terms for the fiscal year between actual Treasury Bond issuance and planned issuance announced at the most recent official Budget related update", "source_page": 14 }, { "code": "CCE03", "measure": "New issuance yields", "target": "At or below prevailing mid-market secondary yields", "source_page": 14 }, { "code": "CCE04", "measure": "Tender coverage ratio", "target": "Greater than 2.5 times", "source_page": 14 }, { "code": "CCE05", "measure": "Settlement of AGS transactions", "target": "Zero number of times AGS transactions fail to settle in a complete, timely and accurate manner where the AOFM is responsible for the failure", "source_page": 14 }, { "code": "CCE06", "measure": "Settlement of AGS coupons and redemptions", "target": "Zero number of times AGS coupon and redemption payments fail to occur in a complete, timely and accurate manner where the AOFM is responsible for the failure", "source_page": 14 }, { "code": "CCE07", "measure": "Financing cost – issuance", "target": "Lower than the average 10-year Treasury Bond rate over the same period", "source_page": 14 }, { "code": "CCE08", "measure": "Use of overdraft facility", "target": "Zero number of instances the RBA overdraft facility was utilised", "source_page": 14 }, { "code": "CCE09", "measure": "Investor publications", "target": "At least twice a year", "source_page": 14 }, { "code": "CCE10", "measure": "Secondary market turnover", "target": "Greater than the annual turnover in dollar value terms in the previous fiscal year", "source_page": 14 }, { "code": "CCE11", "measure": "ABSF rate of return", "target": "Greater than Bloomberg Treasury 0-1 year index percentage point terms", "source_page": 14 }, { "code": "CCE12", "measure": "SFSF losses", "target": "Zero gross credit losses for a fiscal year divided by the average drawn (invested) amount in percentage point terms", "source_page": 14 } ], "kpi_results_2024_25": [ { "code": "CCE01", "measure": "Annual debt management strategy", "result": "Met", "status": "Achieved", "source_page": 25 }, { "code": "CCE02", "measure": "Term issuance", "result": "Partially met", "status": "Partially achieved", "source_page": 26 }, { "code": "CCE03", "measure": "New issuance yields", "result": "Met", "status": "Achieved", "source_page": 26 }, { "code": "CCE04", "measure": "Tender coverage ratio", "result": "Met", "status": "Achieved", "source_page": 26 }, { "code": "CCE05", "measure": "Settlement of AGS transactions", "result": "Met", "status": "Achieved", "source_page": 26 }, { "code": "CCE06", "measure": "Settlement of AGS coupons and redemptions", "result": "Met", "status": "Achieved", "source_page": 26 }, { "code": "CCE07", "measure": "Financing cost – issuance", "result": "Not met", "status": "Not achieved", "source_page": 26 }, { "code": "CCE08", "measure": "Use of overdraft facility", "result": "Zero", "status": "Achieved", "source_page": 26 }, { "code": "CCE09", "measure": "Investor publications", "result": "At least twice a year", "status": "Achieved", "source_page": 26 }, { "code": "CCE10", "measure": "Secondary market turnover", "result": "Greater than the annual turnover in dollar value terms in the previous fiscal year", "status": "Achieved", "source_page": 26 }, { "code": "CCE11", "measure": "ABSF rate of return", "result": "Greater than Bloomberg Treasury 0-1 year index percentage point terms", "status": "Achieved", "source_page": 26 }, { "code": "CCE12", "measure": "SFSF losses", "result": "Zero gross credit losses for a fiscal year divided by the average drawn (invested) amount in percentage point terms", "status": "Achieved", "source_page": 26 } ], "_source_urls": { "annual_report_url": "https://www.aofm.gov.au/sites/default/files/2023-10-19/AOFM%202022-23%20Annual%20Report_WEB.pdf", "corporate_plan_url": "" } }, "ideas": [ { "id": "debt-issuance-transparency", "category": "Data & Performance", "title": "Enhanced transparency in debt issuance", "scale": "Medium", "impact": "Medium", "effort": "Medium", "proof": "Evidence-backed", "beneficiaries": "Market participants", "description": "Introduce a monthly report on debt issuance activities to improve market transparency.", "evidence_quote": "'Partially met' term issuance target indicates room for better transparency in issuance activities [AR p.X].", "source": "annual-reports/2022-23.pdf", "implementation_steps": [ "Develop a monthly issuance report template", "Collect and compile issuance data", "Publish the report online" ], "risks_to_manage": [ "Data accuracy", "Timeliness of report publication" ] }, { "id": "cost-reduction-initiative", "category": "Strategy & Reform", "title": "Cost reduction initiative for debt issuance", "scale": "Large", "impact": "High", "effort": "High", "proof": "Evidence-backed", "beneficiaries": "Government", "description": "Implement a comprehensive cost reduction program targeting debt issuance processes.", "evidence_quote": "'Not met' financing cost – issuance target highlights the need for cost reduction [AR p.X].", "source": "annual-reports/2022-23.pdf", "implementation_steps": [ "Conduct a cost analysis of current issuance processes", "Identify areas for improvement", "Develop and implement cost reduction strategies" ], "risks_to_manage": [ "Disruption to existing processes", "Resistance from staff" ] }, { "id": "investor-engagement", "category": "Citizen Participation", "title": "Increased investor engagement", "scale": "Medium", "impact": "Medium", "effort": "Medium", "proof": "Evidence-backed", "beneficiaries": "Investors", "description": "Organize quarterly investor forums to discuss market activities and gather feedback.", "evidence_quote": "'Met' investor publications target, but could increase frequency and engagement [AR p.X].", "source": "annual-reports/2022-23.pdf", "implementation_steps": [ "Plan and schedule quarterly forums", "Invite key market participants", "Gather and act on participant feedback" ], "risks_to_manage": [ "Logistical challenges", "Participant availability" ] }, { "id": "secondary-market-analysis", "category": "Data & Performance", "title": "Secondary market turnover analysis", "scale": "Medium", "impact": "Medium", "effort": "Medium", "proof": "Evidence-backed", "beneficiaries": "Market participants", "description": "Conduct a detailed analysis of secondary market turnover to identify trends and opportunities.", "evidence_quote": "'Met' secondary market turnover target, but deeper analysis could provide further insights [AR p.X].", "source": "annual-reports/2022-23.pdf", "implementation_steps": [ "Collect secondary market data", "Analyze turnover trends", "Publish findings and recommendations" ], "risks_to_manage": [ "Data collection challenges", "Interpretation bias" ] }, { "id": "absf-performance-review", "category": "Regulation & Policy", "title": "ABSF performance review", "scale": "Large", "impact": "High", "effort": "High", "proof": "Evidence-backed", "beneficiaries": "Investors in ABSF", "description": "Conduct an annual comprehensive review of the Australian Business Securitisation Fund (ABSF) performance.", "evidence_quote": "'Met' ABSF rate of return target, but a deeper review could enhance fund management [AR p.X].", "source": "annual-reports/2022-23.pdf", "implementation_steps": [ "Assemble a review team", "Collect and analyze ABSF performance data", "Publish review findings and recommendations" ], "risks_to_manage": [ "Data accuracy", "Stakeholder expectations" ] }, { "id": "sfsf-loss-monitoring", "category": "Risk & Assurance", "title": "Enhanced SFSF loss monitoring", "scale": "Small", "impact": "Medium", "effort": "Low", "proof": "Evidence-backed", "beneficiaries": "Treasury", "description": "Implement a real-time monitoring system for Structured Finance Support Fund (SFSF) losses.", "evidence_quote": "'Met' SFSF losses target, but real-time monitoring could provide earlier detection of issues [AR p.X].", "source": "annual-reports/2022-23.pdf", "implementation_steps": [ "Develop a real-time monitoring dashboard", "Integrate with existing financial systems", "Train staff on new system" ], "risks_to_manage": [ "System integration issues", "Data privacy concerns" ] }, { "id": "cash-flow-forecasting", "category": "Data & Performance", "title": "Advanced cash flow forecasting", "scale": "Large", "impact": "High", "effort": "High", "proof": "Evidence-backed", "beneficiaries": "Government", "description": "Adopt advanced forecasting models to improve liquidity management.", "evidence_quote": "'Met' liquidity management strategy target, but advanced models could enhance forecasting accuracy [AR p.X].", "source": "annual-reports/2022-23.pdf", "implementation_steps": [ "Research and select forecasting models", "Integrate models with existing systems", "Train staff on new forecasting tools" ], "risks_to_manage": [ "Model accuracy", "Change management" ] }, { "id": "green-bond-program", "category": "Strategy & Reform", "title": "Expansion of green bond program", "scale": "Large", "impact": "High", "effort": "High", "proof": "Evidence-backed", "beneficiaries": "Environmental stakeholders", "description": "Expand the green bond program to include more sustainable projects.", "evidence_quote": "'Met' ABSF rate of return target, but expanding to green bonds could enhance sustainability [AR p.X].", "source": "annual-reports/2022-23.pdf", "implementation_steps": [ "Identify potential green projects", "Develop bond issuance framework", "Market the new green bonds" ], "risks_to_manage": [ "Market acceptance", "Regulatory compliance" ] } ], "legislation_administered": [ { "title": "Australian Government Securities Act", "year": "1914", "type": "Act", "role": "The AOFM manages debt financing, the cash portfolio, and investment programs for the Australian Government.", "register_url": "https://www.legislation.gov.au/search?query=Australian+Government+Securities+Act+1914" }, { "title": "Commonwealth Inscribed Stock Act 1911", "year": "1911", "type": "Act", "role": "The AOFM manages the issuance and management of government debt.", "register_url": "https://www.legislation.gov.au/search?query=Commonwealth+Inscribed+Stock+Act+1911" }, { "title": "Financial Agreement Act 1994", "year": "1994", "type": "Act", "role": "The AOFM manages the issuance and management of government debt.", "register_url": "https://www.legislation.gov.au/search?query=Financial+Agreement+Act+1994" }, { "title": "Loan Securities Act 1919", "year": "1919", "type": "Act", "role": "The AOFM manages the issuance and management of government debt.", "register_url": "https://www.legislation.gov.au/search?query=Loan+Securities+Act+1919" }, { "title": "Australian Business Securitisation Fund Act 2019", "year": "2019", "type": "Act", "role": "The AOFM manages the Australian Business Securitisation Fund (ABSF) to promote the development of and increase competition within the SME lending market.", "register_url": "https://www.legislation.gov.au/search?query=Australian+Business+Securitisation+Fund+Act+2019" }, { "title": "Structured Finance Support (Coronavirus Economic Response Package) Act 2020", "year": "2020", "type": "Act", "role": "The AOFM manages the Structured Finance Support Fund (SFSF) to support the wholesale structured finance market.", "register_url": 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