Published by the Department of Treasury and Finance

© Northern Territory Government 2012

Apart from any use permitted under the Copyright Act, no part of this document may be reproduced without prior written permission from the Northern Territory Government through the Department of Treasury and Finance.

ISSN: 1324-9789

Northern Territory Treasury CorporationLevel 5, 38 Cavenagh Street Darwin NT 0800GPO Box 2035 Darwin NT 0801Telephone: 08 8999 5534Facsimile: 08 8999 7449Email: nttco r p@nt.g o v .au Website: ww w .nttco r p .nt.g o v .au

Territory Bonds Phone: 08 8999 7745Email: te r rito r y .bonds@nt.g o v .au Website: ww w .te r rito r ybond s .nt.g o v .au/bond s .shtml

Cover photographs:

• Bayu Undan drilling rig – supplied by Territory Q

• Uterne 1MW solar power station, Alice Springs – Australia’s largest solar tracking power station, a Power and Water Corporation and SunPower project.

• Urban housing construction – supplied by Department of Lands, Planning and the Environment

The Hon Robyn Lambley MLATreasurerParliament HouseDARWIN NT 0800

Dear TreasurerI have pleasure in presenting to you the Annual Report of the Northern Territory Treasury Corporation. The report details the activities and operations of Treasury Corporation for the year ended 30 June 2012, in accordance with the provisions of section 31 of the Northern Territory Treasury Corporation Act and section 28 of the Public Sector Employment and Management Act.Pursuant to the Financial Management Act, I advise that to the best of my knowledge and belief:(a) proper records of all transactions affecting Treasury Corporation are kept and that

employeesunder my control observe the provisions of that Act, the Financial Management Regulations and the

Treasurer’s Directions;

(b) procedures within Treasury Corporation afford proper internal control, and all procedures and policies are documented;

(c) no indication of fraud, malpractice, major breach of legislation or delegation, major error in or omission from the accounts and records exists;

(d) in accordance with the requirements of section 15 of the Act, the internal audit capacity available to Treasury Corporation is adequate and the results of internal audits have been reported to me;

(e) the financial statements included in the Annual Report have been prepared from proper accounts and records, and are in accordance with Treasurer’s Directions; and

(f) pursuant to section 131 of the Information Act, I advise that to the best of my knowledge and belief, Treasury Corporation has implemented processes to achieve compliance with the archives and records management provisions as prescribed in Part 9 of the Information Act.

I can also advise you that the Auditor-General has audited Treasury Corporation’s financial statements for the year ended 30 June 2012 and his report is included.

Yours sincerely

Alan TregilgasUnder Treasurer and Chair28 September 2012

Page3 Treasury Corporation

Profile4 Chair’s Address6 Performance Summary7 Financial Markets11 Client Services17 Administration20 Treasury Corporation

People21 Corporate Governance27 Territory Economy31 Appendices39 Financial ReportInside Back Cover – Contacts

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MissionTo provide the Northern Territory Governmentwith cost-effective funding, efficient financialmanagement and reliable service to assist theNorthern Territory in achieving long-term viabilityfor the benefit of Territorians.Values• Open communication and respect• Trust and integrity in all our

dealings and relationships• Valuable contributions for our stakeholders• Dedication and professionalism

amongst our peopleEnabling ActThe Corporation was established on 1 July 1994under the Northern Territory Treasury Corporation Act.Statutory GuaranteeAll obligations incurred or assumed by theCorporation are guaranteed by the Treasurer onbehalf of the Northern Territory under section 20of the Northern Territory Treasury Corporation Act.StatusThe Corporation is a government business divisionand part of the Northern Territory Treasury for thepurposes of the Public Sector Employment andManagement Act.

Credit RatingMoody’s Investor Service has assigned theCorporation a long-term issuer rating of Aa1 with astable outlook.How to Use this ReportThis report is designed to meet NorthernTerritory Treasury Corporation’s annual reportingrequirements, as specified for public sectoragencies in the Public Sector Employment andManagement Act, Financial Management Act,Information Act and the Northern Territory Treasury

Corporation Act. It reports Treasury Corporation’sperformance to the Treasurer, the legislativeassembly, government agencies, stakeholders andto financial markets and ratings agencies.

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Treasury Corporation ProfilePurposeThe Northern Territory Treasury Corporation is the central financing authority for the Northern TerritoryGovernment. The Corporation is responsible for providing specialist financial advice and services toNorthern Territory Government to support the delivery of infrastructure and service to Territorians by:• undertaking sound borrowing and investing activities for the Northern Territory

Government;• investing surplus short-term cash balances of Government accounts; and• providing cost-efficient loans to its public sector clients and Government agencies,

government-owned corporations and local authorities.

Figure 1: Corporation Programs, Functions and Stakeholders

4

Chair’s AddressReview of 2011-12• Volatile global market environment• Sound domestic economic conditions• Record borrowing program of $1398

million including pre-funding of $492 million for 2012-13

• Syndicated approach to issuing bonds under the Australian Domestic Note Programme

• Over $3.2 billion on issue in major bond series

• Return on surplus cash balances of 5.02 per cent

• Review GST framework

Outlook for 2012-13• Tap issues of existing long-dated bond

series• New major bond series to be established

under the Australian Domestic Note Programme

• Budget approved borrowing program of$721 million including refinancing maturing debt of approximately $411 million

• Completion of systemisation of internal CSA process

• Continued market volatility

Financial markets have experienced another year of volatile markets in 2011-12. The global and domestic economic environments have been heavily influenced by periods of weakness and uncertainty in Europe, United States (US) and China. To date, the coordinated action taken to stem the global financial crisis and stimulate a sustainable global economic recovery has had mixed success. In addition, further measures to contain the financial threat of a Greek default have continued to disappoint, while the list of countries seeking assistance from the European Central Bank continues to grow. The US recovery is continuing, albeit at a slow pace, while growthin China is moderating. This, along with continued social unrest in the Middle-East, has created a volatile environment for financial markets across the world over the past year.In Australia, the economic fundamentals remain strong despite the presence of a two-speed economy. The mining industry continues to grow at historically high levels, while other industries such as retail and manufacturing struggle. Consumer confidence remains low, however, investor confidence has continued to grow over the 2011-12 financial year. This environment hasbeen a major influence on the Corporation over the period in its interaction with clients and financial markets. The outlook for 2012-13 is still likely to be challenging, with the prospect of elevated levels of volatility.

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Locally, the Territory economy has continued toperform well given the economic downturn causedby the sovereign debt crisis in Europe. The trendunemployment rate is 4.2 per cent (June 2012),compared to 5.1 per cent nationally. DeloitteAccess Economics’ Business Outlook for theJune quarter 2012 forecasts the average annualfive-year economic growth rate for the Territorythrough to 2016-17 to be 4.8 per cent. Thiscompares to a national rate of 3.2 per cent. Themain drivers of economic growth in the Territoryare expected to be private construction investmentand international exports.The 2011-12 borrowing requirement comprised$427 million of refinancing and $479 million ofnew money. The Corporation raised these fundsprimarily from additions to existing bond series andsyndication of two new major bond series maturingin November 2017 and September 2018 issuedunder the Corporation’s new Australian DomesticNote Programme. Also, given the favourable marketconditions and the desire to reduce exposureto unsettling market events in 2011-12, a further$492 million was raised as pre-funding

towards the2012-13 financial year.The Corporation’s investment and cash management activities have adjusted to the challenging environment, with a higher level of liquidity maintained throughout the period. The Corporation achieved a return of 5.02 per cent on the Government’s investment portfolio of surplus cash balances. This was ahead of the benchmark return of 4.70 per cent and is considered to be a good result given the investment environment.The investment portfolio represents approximately 57 per cent of total funds under management.Its weighting towards high quality short-term investments has helped provide consistency and protection from the volatility experienced inlonger-term investments, which are held to partially meet superannuation-related liabilities.

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The long-term investments held in theConditions of Service Reserve (COSR)returned -0.39 per cent. This represents a slightunder-performance of 0.01 per cent relative tobenchmark and was largely due to a fund managerasset allocation review undertaken throughout2011-12. While the absolute performance isdisappointing in the short term, the fund hasmanaged to outperform its benchmark over a3, 5, 7 and 10-year time frame, which more closelyreflects the investment term for these funds.Administratively, management continued to work with KPMG to perform the internal audit of the Corporation’s activities. In addition,PricewaterhouseCoopers were commissioned to assist in undertaking a review of the Corporation’s compliance with relevant GST legislation and regulations. Internally, the systemisation of the control self-assessment process was further progressed with the aim of full implementation throughout 2012-13. These requirements, in addition to normal duties and the unusualmarket and economic conditions have tested the Corporation but have been dealt with appropriately and successfully.In conclusion, I wish to express my gratitude to my predecessor Jennifer Prince for the effective performance of the Corporation over the last 10 years and to the Advisory Board and staff for their valuable advice, diligence and professionalism during this challenging year.

Alan Tregilgas Under

Treasurer and Chair 28 September 2012

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Performance SummaryTable 1: Performance Measurement

2010-11 2011-12Performance Measures Actual

Estimate

2011-12Actual

2012-13Estimate

QuantityWeighted average cost of borrowing during the year 5.29% 5.00%Quality

Borrowing rate margin compared to industry peers1 +0.22%

≤0.40% v

arianceInvestment portfolio:

Investment portfolio return above benchmark2 +0.31% >indices Volatility of investment portfolio return against +0.31% ±0.25% benchmark2

4.86%

+0.38%

+0.32%

+0.32%

6.00%

≤0.50% v

ariance

>indices

+0.25%1 State and territory governments’ central financing authorities.

2 The benchmark is the weighted relevant UBS Warburg Performance indices. The composite benchmark return for 2011-12 was 4.70% while the Corporation achieved a return of 5.02%.3 A stakeholder satisfaction rating was not completed prior to the Northern Territory election on 25 August 2012.

Performance Measure AnalysisThe Corporation achieved its performance targets in all areas. Despite continued volatility experienced in the financial market during the year, the Corporation’s cost of borrowing target was lowered to 5 per cent. The actual outcome achieved for the year was 4.86 per cent. The weighted average cost of borrowing (including short-term promissory notes) on outstanding issued debt at 30 June 2012 was 5.67 per cent.Despite market interest rates declining throughout 2011-12, the Corporation’s borrowing margin increased quite significantly during the financial year.

This can be primarily attributed to the ongoing uncertainty in Europe, which resulted in a deterioration in credit markets and increased demand from investors for liquidity. The Corporation accepts the widening spread reflects the increased liquidity premium demandedby investors and the Corporation’s strategy to increase the term and duration of bonds on issue.Government’s investment portfolio returned0.32 per cent above target. The portfolio waspredominantly invested in short-term securitieswithin the existing credit limits approved by theTreasurer.

Table 2: Financial Summary of Statement of Comprehensive Income2011-12 2010-11 2009-10 2008-09 2007-08

Revenue ExpensesProfit before tax Tax expenseNet profit after tax

$000233 453203 527

29 9268 978

$000 $000 $000 $000197 262 172 750 160 175 174

063173 751 150 175 141 102 149

08423 511 22 575 19 073 24 9797 053 6 773 5 722 7 494

% $M15 September 2012 6.25 30015 October 2013 6.75 40014 July 2014 5.75 50020 October 2015 6.25 50020 November 2016 5.75 50017 November 2017 4.75 50020 September 2018 4.75 500

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Financial MarketsTable 3: Borrowing Composition

2011-12 2010-11 2009-10 2008-09 2007-08

Refinance maturing Territory debt New borrowingsBorrowing requirementPre-funding

$M427479906492

$M $M $M $M363 376 295 441207 325 - 46570 701 295 487

- 190 - -Total borrowing program 1 398 570 891 295 487

Borrowing ActivityThe 2011-12 borrowing requirement was significantly higher than last year, with approximately $906 million raised to refinance maturing debt and additional borrowings to fund capital and operating expenditure for Northern Territory Government agencies, business divisions and corporations. In addition, the Corporation committed to pre-fund part of the 2012-13 program, which resulted in raising a further$492 million, taking the total borrowing program for 2011-12 to $1398 million. This follows $570 million raised in 2010-11 and $891 million in 2009-10, as shown in Table 3.As in recent years, the Corporation’s entire borrowing requirement was met from domestic financial and retail markets. The bulk of the funds were raised through a number of medium to long-term fixed interest securities, issued toinstitutional investors via tap increases of existing

bond series and creation of new bond issues on a syndication basis. A full listing of the Corporation’s issued debt is provided in Appendix A on page 31.The Corporation’s funding requirement in 2011-12 resulted in the establishment of two new benchmark lines of bonds maturing in November 2017 and September 2018. As at 30 June 2012, the Corporation had seven institutional benchmarkbond issues as detailed in Table 4.T a b le 4: Institutional Bond Issues as a t 30 J une 2012

M a turity D a te Coupon Amount on Issue

Table 5: Borrowing Performance as at 30 June2011-12 2010-11 2009-10 2008-09 2007-08

Average borrowing marginShort-term – margin to bank bill

swap (BBSW) rateLong-term (floating rate) – margin to swap Long-term (fixed rate) – margin to AAA rated semi-government securityCost of borrowing achieved during the yearWeighted average cost of borrowingTotal cost of fundsWeighted average cost of funds

%

- 0.04

- 0.38

4.86

5.67

% % % %

- 0.04 - 0.05 - 0.21 - 0.14

- - - - 0.100.22 0.24 0.13 0.11

5.29 5.70 5.96 6.67

6.10 6.15 6.10 6.34

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Portfolio Duration and Term to MaturityAs at 30 June 2012, the weighted average duration of the Northern Territory debt on issue was3.6 years, an increase from the 3.0 years reported in 2011. Similarly, weighted average term to maturity was slightly higher at 4.2 years compared to 3.6 years recorded in 2011.Interest Rate Risk ManagementThe Corporation’s interest rate risk arises from cash flow mismatches in the maturity profiles and repricing dates of its financial assets andliabilities. The Corporation manages its exposure to interest rate risk so as to avoid creating abnormally high refinancing requirements during periods of high interest rates, or unusually low refinancing requirements in periods of low interest rates(see Figure 2).

The Corporation may use interest rate swapsand forward start interest rate swaps to manageinterest rate risk as required.In March 2012, the Treasurer approved a revised target band of interest rate exposure to maturing debt in any financial year to a lower limit of$400 million and an upper limit of $800 million.This strategy continues to support the Corporation’s ability to respond to strong demand from institutional investors and create slightly larger and more liquid bonds series. The target will support the increase in the Territory’sborrowing requirement anticipated for the next two to three years to fund the capital and operating expenditure requirements of Governmentagencies, government business divisions (GBDs) and government owned corporations (GOCs).

Figure 2: Interest Rate Exposure of Maturing Debt as at 30 June 2012

Figure 3: Trading Margin

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FundingThe Corporation manages the NorthernTerritory Government’s exposure to funding risk by ensuring it is not exposed to a significant refinancing risk in any financial year. The Corporation’s approach to minimise fundingrisk involves the diversification of borrowing and investment activities across the maturity spectrum and utilising a variety of funding sources to meet the Corporation’s requirements.

The Corporation’s funding sources are as follows:» Wholesale Market

• fixed interest securities• floating rate notes• promissory notes

» Retail Market• Territory Bonds• Migration Linked Bonds

Trading MarginAn important influence on trading margins is the perception of liquidity. The relatively small sizeof the Territory’s borrowing program does not promote significant trading activity and, as such, the borrowing margin is more of a reflection of the liquidity premium demanded by institutional investors for supporting the Corporation’s bond issuances.The implied trading margin between a Northern Territory Government-issued bond and an interpolated AAA rated state government fixed interest security has deteriorated throughoutthe course of the year, increasing by around0.16 per cent. This can be primarily attributed tothe ongoing uncertainty in Europe, which resultedin a deterioration in credit markets and placedfurther pressure from investors for liquidity on allborrowers. The Corporation accepts the wideningspread reflects the increased liquidity premiumdemanded by investors and the strategy toincrease the term and duration of bonds on issue.

Figure 3 on page 8 shows the Corporation’s borrowing margin relative to the Commonwealth and AAA rated central financing authorities.

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Promissory NotesThe Corporation’s short-term funding requirement is met through its promissory note facility. These notes are issued by way of tender to our main banking counterparties.The Corporation had $50 million of promissory notes outstanding as at 30 June 2012. The promissory note facility was used throughout the year to meet short-term funding requirements.The weighted average yield achieved for the financial year was 4.49 per cent, with an average margin to bank bill swap (BBSW) referencerate of -0.04 per cent. The issuing margins to BBSW in 2011-12 ranged from -0.03 per cent to-0.08 per cent.Migration Linked BondsThe bonds offered by the Corporation satisfy the criteria of a Designated Investment under the following programs administered by theDepartment of Immigration and Citizenship (DIAC):• Business Skills Migration• Investor Retirement MigrationThe Corporation did not receive any applications for Designated Investments during the financial year, which resulted in no Migration Linked Bonds being issued in 2011-12.

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Territory BondsTerritory Bonds is the Corporation’s retail fixed interest borrowing product and is used to attract funds from the general public. Territory Bonds has been issued since 1979 and is offered to investors seeking a safe, secure, government-guaranteed investment.In 2011-12, a total of $36.6 million was raised from 1728 applications, slightly down fromthe previous year’s result of $39.9 million from 1965 applications. As at 30 June 2012, total outstanding Territory Bonds on issue stood at about $118 million, down from the $136 million recorded at the end of fiscal year 2011.

Territory Bonds has become a more cost-effective borrowing source over the last ten years, due to the increase in the average investment size perbond holding. This trend continued in 2011-12 and as Figure 4 below shows the average investment size has continued to rise and has more than doubled since June 2001.Table 6 shows an analysis by term and interest payment frequency of Territory Bonds raised in 2011-12.

Figure 4: Territory Bonds Outstanding and Average Holding Size

Table 6: Analysis of Funds Raised from Territory Bonds in 2011-12Interest Paid

Term Quarterly

Semi-Annual

Annually Total% % % %

1 Year 11.9 7.3 21.0 40.12 Years 2.1 7.0 8.0 17.13 Years 2.9 7.9 5.3 16.05 Years 0.6 1.3 4.4 6.37 Years 3.2 6.8 10.4 20.4Total % 20.7 30.3 49.1 100.0Total Amount ($M) 7.6 11.1 17.9 36.6

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Client ServicesLoansThe Corporation lends funds to the Northern Territory Government, GBDs, the GOC, local authorities and other government organisations. Loans are issued in accordance with commercially-based guidelines and practices. All loans are approved by the Treasurer ofthe Northern Territory in accordance withsection 13(2)(b) of the Northern Territory TreasuryCorporation Act and section 31(1) of the FinancialManagement Act.As at 30 June 2012, the Corporation had a total outstanding loan portfolio of $3559 million,an increase of $480 million from the previous financial year. Table 7 shows the comparative analysis of total outstanding loans provided by the Corporation over the past five years.General Government AgenciesGeneral government agencies are funded through the Central Holding Authority (CHA) via loans provided by Treasury Corporation. CHA is the ‘parent body’ that represents the Territory Government’s ownership interest inGovernment-controlled entities. The funds are used to finance general government activities and the Northern Territory’s major infrastructure projects.As at 30 June 2012, loans to the general government sector totalled about $2114 million, an increase of about $324 million from the previous financial year. The net movement is a result of new loans for $310 million plus net debt-for-equity swaps undertaken with the Power and Water

Corporation and the Land DevelopmentCorporation, less scheduled loan repayments.Government Business DivisionsLoans to GBDs represent borrowings by Territory Government-owned entities that operate on a commercial basis. The funds are used to finance capital and operating expenditure requirements.As at 30 June 2012, loans to this sector totalled about $247 million, an increase of approximately$40 million from the previous financial year. Thenet movement is due to new loans of $30 million toNT Home Ownership and $25 million to the LandDevelopment Corporation. NT Fleet’s loan wasrepaid and Darwin Port Corporation repaid twoloans totalling $3.5 million during the year.Government Owned CorporationsLoans to GOCs represent borrowings by Territory Government-owned entities that operate on a commercial basis but whose operations are not guaranteed by the Crown and that do not make the Territory liable for its debts, liabilities or obligations. The funds are used to finance capital andoperating expenditure requirements.The Power and Water Corporation is the only entity established as a GOC as at 30 June 2012. Loansto this sector totalled approximately $1198 million, an increase of $115 million from the previous financial year. This is the net movement resulting from $159 million lent throughout the course ofthe financial year, less debt-for-equity swaps with CHA totalling $42 million, and less scheduled loan repayments throughout the year.

Table 7: Outstanding Loans as at 30 June2012 2011 2010 2009 2008

General government agencies Government business division Government owned corporation Local authorities

$M2

113.8246.71

197.90.4

$M $M $M $M1 789.5 1 579.9 1 581.9 1 598.1

206.4 201.6 209.9 321.61 082.5 904.5 565.3 426.8

0.4 0.4 0.5 0.8- - - 0.1

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Total 3 558.8 3 078.8 2 686.4 2 357.6 2 347.4

15

Local AuthoritiesLoans to local authorities represent borrowingsby local governing bodies situated throughout theNorthern Territory. The funds are used to financespecific council infrastructure projects, workingcapital requirements or to purchase or replaceexisting plant and equipment. Loans to localauthorities are first assessed by the Department ofHousing, Local Government and Regional Servicesand must carry the support and recommendationof the Minister for Local Government prior to beingsubmitted for approval to the Treasurer of theNorthern Territory.As at 30 June 2012, the Corporation only has one outstanding loan to this sector of $0.4 million.

Other Government OrganisationsLoans to other government organisations represent borrowings by non financial public sector organisations with which the Northern Territory Government has an association.Charles Darwin University (CDU) is the only entity established under this classification and as at30 June 2012 the Corporation had no outstanding loans to CDU.A full listing of the Corporation’s loans is provided in Appendix B on page 35.

Figure 5: Client Loans as at 30 June 2012 Figure 6: Client Loans by Sector as at 30 June 2012

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17

Central Holding Authority Investments» The Northern Territory Government’s

investment portfolio is formed by pooling the surplus cash balances held in the name ofCHA and investing in a variety of secure short, medium and long-term debt securities issuedin the Australian financial markets.

» The broad objectives of the Corporation in managing CHA’s investment portfolio are:

• to ensure sufficient liquidity is maintained inthe Government’s cash balances to meet all financial obligations as they fall due; and

• to obtain a return on the Government’s cash balances in line with the benchmark, while adhering to the investment guidelines approved by the Treasurer.

Details of the investment guidelines approved by the Treasurer of the Northern Territory are outlined in Appendix C on page 36.

Central Holding Authority InvestmentsInvestment PortfolioThe investment portfolio is composed of a range of secure investments, of which a significant proportion is in short-term instruments such as 11am cash, bank accepted bills, promissory notes and negotiable certificates of deposit. A core amount of the investment portfolio is available for investment in longer-term instruments such as floating rate notes and fixed interest securities.The Corporation aims to achieve the maximum return on investments within defined risk parameters, while ensuring the Government has sufficient cash balances to meet cashflow requirements in anticipation of increased government expenditure and declining revenues.

Accordingly, the Corporation has maintained a high allocation to cash and short-term securities.As at 30 June 2012, the total investment portfolio was $655 million, compared to $452 million at30 June 2011 (see Table 8).Total investment income for 2011-12 was$32.7 million compared to $40.5 million in 2010-11.All interest revenue on the investment portfoliois paid directly to CHA. The weighted averagereturn on the investment portfolio in 2011-12was 5.02 per cent compared to 5.27 per cent in2010-11 (see Table 9). The portfolio outperformedthe benchmark in 2011-12, with a higher nominalreturn due to higher short-term interest ratesduring the year.

Table 8: Investment Portfolio by Asset Allocation as at 30 June2012 2011 2010 2009 2008

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Cash and short-term securities Floating rate notesFixed interest securities

% $M99.2 650.0

0.8 5.00.0 0.0

% $M % $M % $M % $M96.7 436.589.0 812.0 67.8 421.4 67.3

442.93.3 15.0 2.2 20.0 4.0 25.0 4.6 30.0

0.0 0.0 8.8 80.0 28.2 175.0 28.1 Total 655.0

451.5 912.0 621.4657.9

Table 9: Investment Performance against Objective/Comparison to Benchmark2011-12 2010-11 2009-10 2008-09 2007-08

Weighted average return (mark to market) Weighted UBS performance indices

%5.024.70

% % % %5.27 4.39 6.71 7.084.96 3.91 6.73 7.10

Weighted average fund return - 0.39 8.01 - 0.34 4.79 6.18Benchmark – Morningstar Multisector Growth Portfolio - 0.38 6.35 - 1.21 3.16 4.67Performance of COSR relative to benchmark - 0.01 1.66 0.87 1.63 1.51

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Conditions of Service ReserveCOSR is a segregated pool of investments held within CHA. The funds are held at the discretion of the Treasurer and are intended for purposes such as meeting the Territory Government’sunfunded superannuation liabilities. The funds are managed by three investment managers and have a long-term investment strategy orientated towards growth assets such as domestic and international equities.The Corporation is responsible for monitoring and reporting on the performance of the fund and managing the relationship with the investment managers.The investment performance of the fund is benchmarked against performance results for the ‘Multisector Growth’ product category as published in the monthly Morningstar AustralianSuperannuation Survey. This is consistent with the asset allocation mix applied to COSR.As at 30 June 2012, the market valuation of the COSR fund totalled $434.8 million, a decrease of $1.8 million from the $436.6 million recorded on 30 June 2011. There were no additional contributions to the fund during 2011-12.A snapshot of the COSR pool of investments and fund performance is shown in Table 10.

Medium-Term Investment FundThe Medium-Term Investment Fund (MTIF) is a segregated pool of investments held within the CHA. It primarily represents surplus funds that have accumulated and have not yet beenexpended by Territory Government agencies. The MTIF fund is a tailored solution provided by MLC Investments Limited. The MTIF has a relatively conservative investment style, with a small allocation (about 15 per cent) to growth assets in order to achieve its stated objective of producing a superior return over the medium term (two to three years).The Corporation is responsible for monitoring and reporting on the performance of the fund and managing the relationship with the investment manager. The investment performance of thefund is benchmarked against the UBS Warburg Australian Bank Bill Index.The MTIF commenced on 27 November 2007 with an initial investment of $50 million. As at30 June 2012, the market valuation of the MTIF totalled $61.9 million.

Table 10: Conditions of Service Reserve – Investment Allocation and Performance SummaryFund

Allocation %

Market Valuation 30 June$M Performance Returns %

Fund Manager 2012 2012 2011 1 Year 3 Years 5 Years 7 Years 10 YearsAMP Capital Investors 28.7

LimitedColonial First State Global 43.3

Asset ManagementMLC Implemented 28.0

Consulting

124.8

188.4

121.6

125.2 - 0.30 8.61 - 0.98 4.77 6.31

190.6 - 1.16 7.74 0.18 5.82 6.36

120.8 0.67 7.76 - 0.66 3.90 5.60

Total 100.0 434.8 436.6

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Investment EnvironmentJuly – September 2011• The September quarter was another

difficult period in financial markets as slowing global growth, US political debate over raising the debt ceiling and continuing European sovereign debt issues decreased nervous investors’ confidence in growth assets.

• Domestically, economic data was generally weak. Unemployment rate rose to 5.3%,gross domestic product (GDP) grew by 1.2% and consumer sentiment dropped partially due to the Government’s announcement to introducea carbon tax from July 2012. The Australian share market was not immune to the convergence of global factors finishing the September quarter down 11.58%.

• The Reserve Bank of Australia (RBA) left the cash rate unchanged at 4.75% during the quarter citing interest rates at historically low average levels, inflation and growth close to trend, and continuing global uncertainty.

• The Australian dollar (AUD) fell by 8.9% against the US dollar (USD) during the September quarter to finish at US $0.978. Overall, theAUD fell by 13.3% against the Japanese Yen (JPY), and 2.6% against the Euro (EUR). In trade weighted index (TWI) terms, the AUD depreciated by 6.9% during the quarter.

October – December 2011• The investment environment throughout

the last quarter of 2011 was significantly influenced by the political and social unrest in Europe. Therisk of a sovereign default in Europe, a potential break-up of the Monetary Union, coupled with perceived solutions by policymakers saw equity markets trade in a volatile manner, but within a band over the quarter.

• Economic data during the quarter was generally weak. Retail sales slowed over the quarter and consumer confidence weakened.

• Consecutive rate cuts by the RBA in November and December saw the cash rate fall from 4.75% to 4.25%. The RBA decisions were primarily influenced by concerns about the globaleconomy, particularly the ongoing sovereign debt issues in Europe.

• The AUD rose by 3.83% against the USD during the December quarter to finish at US $1.02.

• European leaders agreed to recapitalise European banks and a 50% writedown on Greek bonds. Furthermore, a weak bond auction in Germany, Standard & Poor’s (S&P) downgradeof Belgium’s rating and the reluctance ofthe European Central Bank (ECB) to supportcountries in distress, all dented marketconfidence.

January – March 2012• Improving economic data in the US and a

more optimistic view of the European sovereign debt crisis saw global equity markets perform well during the first quarter in 2012. The US economy grew by 3.0% in the March quarter with the unemployment rate falling to its lowest level in three years at 8.3%.

• In Europe, the ECB eased liquidity concerns with a second round of its Long-Term Refinancing Operations program. Nonetheless, concerns remain over the ability and willingness for European governments to stabilise their public finances.

• The RBA left the cash rate unchanged at 4.25% over the March quarter. Apart from mining, the majority of other sectors within the economy continue to struggle.

• Consumer and business confidence, housing finance and the trade balance have all softened and have been generally weaker than expected.

• The AUD rose by 2.4% against the USD during the March quarter to finish at US $1.04.

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April – June 2012• Global economic conditions have

remained highly fragile with ongoing weakness in Europe, easing in the pace of growth in China and a slowdown in the US recovery.

• China lowered the one-year Renminbi (RMB) benchmark deposit and loan interest rates by0.25 percentage points to 3.25 per cent and6.31 per cent, respectively for the first time since2008 amid concerns about the global economyand a slowdown in domestic demand.

• Consumer price index (CPI) data published for the March quarter was lower than expected, with a fall of 0.2 per cent on a seasonally adjusted basis, to be 1.6 per cent over the year to March.

• Due to global uncertainty the RBA lowered the cash rate by 75 basis points in the June quarter to 3.50 per cent.

• Spanish Government bond yields rose above 6 per cent. While a bail out for the Spanish banking system has been agreed to, details of exactly how much is needed and how it will be distributed are still being negotiated.

• Reflecting the increased risk aversion across global financial markets, bond yields in the US, Germany and the United Kingdom (UK) fell markedly with 10-year bond yields reaching historic lows during the quarter.

• The AUD depreciated by 5 per cent in May, which was in contrast to past resilience shown during volatile periods earlier in the year.

• The Australian Government has forecast a shift from a budget deficit of 3 per cent of GDP in 2011-12 to a 0.1 per cent surplus in 2012-13.

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AdministrationThe administration program aims to ensure theCorporation operates in a professional, efficientand cost-effective manner. This is achieved byimplementing policies relating to current financialmarket and accounting practices, regularlyreviewing internal procedures and providingrelevant and timely training to employees. Specificfunctions include:• providing timely and accurate

settlement of all financial market transactions;

• maintaining the Corporation’s inscribed stock register by recording details of all inscribed stock and holders in accordance with the Registry Services Agreement and the Corporation’s Inscribed Stock Regulations;

• ensuring that the Corporation’s finances are managed in an efficient and cost-effective manner, within stated limits and in accordance with Australian Accounting Standards and legislation;

• providing administrative support to the Corporation’s Advisory Board and Audit Committee;

• satisfying the Corporation’s personnel requirements by maintaining current human resource management practices, and encouraging open communication between management and staff; and

• producing the Corporation’s annual report in accordance with legislative requirements.

Major ProjectsGoods and Service Tax ReviewThe Corporation undertook a review of its goods and services tax (GST) framework in conjunction with PricewaterhouseCoopers. The purposeof the review was to assess the Corporation’s compliance with relevant GST legislation and regulations and provide advice on the robustness of the Corporation’s apportionment model and associated assumptions.

The review found that the Corporation had a goodworking knowledge and understanding of GSTand how it applies to its activities. No complianceissues were identified in the current framework.Several areas of improvement in supportingthe Corporation’s apportionment model wererecommended and will be implemented by the endof 2012.Control Self-Assessment ReviewContinuing on from the work undertaken in December 2010, the Corporation is systemising its control self-assessment process, which willresult in a more streamlined process for inputs and enhanced data capture, reporting and auditing capabilities. The project should be completed in late 2012.Business RelationshipsRegistry ServicesThe Corporation has a key relationship with Link Market Services, which maintains the Corporation’s retail inscribed stock register, recording details of all inscribed stock and holders in accordance with the Registry Services Agreement and the Northern Territory Treasury Corporation’s Inscribed Stock Regulations. Link has offices in Melbourne, Sydney, Brisbane and Perth, which provide convenient access for most bondholders.The Corporation utilises ASX Austraclear Services Limited for the registration of its wholesale domestic borrowings. ASX Austraclear provides the Corporation with the full range of corporate actions relating to the life cycle of the security issued to the financial markets, from origination to maturity. Corporate actions include inscribing thesecurities in the ASX Austraclear Services register, making payments, transferring ownership of the security between seller and buyer and effecting payments at maturity of securities.

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Human Resource ManagementStaffingThe Corporation’s staff are employed under thePublic Sector Employment and Management Act (PSEMA). Section 10 of the Northern Territory Treasury Corporation Act permits the Under Treasurer to assign employees to the Corporation from Northern Territory Treasury, on either afull-time or part-time basis.As at 30 June 2012, the Corporation had eightfull-time employees: five females and three males.Staff are required to comply with the PSEMA, Codeof Conduct and the codes of ethics of all relevantprofessional associations.Employee Performance ManagementThe Corporation, in conjunction with Northern Territory Treasury, operates an Employee Development Framework (EDF), which provides a two-way feedback structure between managers and staff. The framework is designed to identify and develop the work performance of employees, so that the Corporation’s and employees’ objectives and goals are achieved. Staff and management undertake two performancereviews each year. Development requirementsare recorded and followed up using the NorthernTerritory Treasury EDF database.Training and Professional Memberships Staff undertake training and professional development aligned with organisational requirements which are generally identified through the EDF process. In addition to training, staff are encouraged to undertake financeand accounting-related study through variousprofessional bodies and institutions at thepost-graduate level. Formal study is supportedby Northern Territory Treasury’s Study Assistance

program which provides up to 2.5 hours paid studyleave per week and reimbursement of coursecosts upon successful completion (capped at$1500 per unit).

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Staff undertook training and professional development in the following areas:• risk management;• report writing;• taxation;• cultural awareness;• government-related systems; and• business administration.Employees are reimbursed half the cost of their annual professional membership fees where membership is relevant to their work role.Management and staff hold memberships with the following professional bodies:• Australian Financial Markets Association;• Australian Society of Certified

Practising Accountants;• Australian Institute of Company Directors;

and• Financial Services Institute of Australasia. Equal Opportunity and Workplace Harassment The Corporation is an equal opportunity employer and is committed to providing a workplace that is free from discrimination and harassment.All employees are required to take sessions onanti-discrimination, cross-cultural and harassmentawareness to promote an understanding ofsuch issues and inform staff of policies in placeto address any incidents. In addition, NorthernTerritory Treasury has formal and informalcomplaints processes as well as a grievanceresolution procedure in place that staff canaccess.Employee WellnessCorporation staff have access to NorthernTerritory Treasury’s Employee Assistance Program(EAP). This program provides an importantservice to the agency’s employees and formspart of our occupational health and safety (OHS)

commitments. The Corporation recognises that

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Figure 7: Northern Territory Treasury Corporation’s Organisational Structure

staff may be affected by personal, family orwork-related issues and EAP is one way that theCorporation supports staff. The EAP offers upto five free confidential counselling sessions foremployees and their family members, with either ofNorthern Territory Treasury’s EAP providers.Also, flu vaccinations are available to Northern Territory Treasury employees on an annual basis.Flexible Work ArrangementsThe Corporation continues to recognise the need for employees to balance their work and family commitments and has a flexible work arrangements policy. The policy, which is consistent with the Union Collective Agreement for Northern Territory public sector employees, emphasises the need for employees and their

managers to negotiate arrangements that suit boththe individual and the needs of the workplaceand provides a structured approach to makingarrangements that are clear and equitable forthose involved.Finance Officer in Training (FOIT) Scheme Throughout the year, graduates employed through the Northern Territory Treasury FOIT schemeare provided with placement opportunities inthe Corporation. The FOIT program consistsof graduates engaged on a 12-month contractwho undertake work experience in several workareas in Northern Territory Treasury over the year.This is coupled with regular training through acomprehensive series of workshops and seminarsoutlining Northern Territory Treasury’s functionsand government processes and structures.

Employment OpportunitiesInformation on employment opportunities within the Corporation

can be found on the Northern Territory Government’s website at www.nt.gov.au/jobs andNorthern Territory Treasury’s website at

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www.nt.gov.au/ntt/careers or by contacting:

Mr Alex PollonGeneral Manager(08) 8999 6318Ms Vicky ColemanManager Financial Administration(08) 8999 5599Mr Richard TingManager Financial Assets and Liabilities(08) 8999 6767

Aboriginal and Torres Strait Islanders -Non-English speaking background 6People with a disability -

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Treasury Corporation PeopleTotal Staff Numbers by Gender and LevelTable 11 provides a comparison by gender for each classification level.

Table 11: Staff Demographics (FTE) as at 30 June 2012Designation Male Female Total

2010-11AO4 1AO5 1SAO1 1ECO1 1

2011-12

111

2010-11

31

2011-12131

2010-111421

2011-121421Total 4 3 4 5 8 8

As part of the Corporation’s equal employment

opportunities (EEO), staff take part in an annualcensus conducted by Northern Territory Treasuryto update their contact, next of kin and EEO details.This data is used to assist in workforce planning,reporting and for business continuity purposes.Table 12 provides the Corporation’s EEO profile.

Table 12: EEO Profile as at 30 June 2012

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Back row: Alex Pollon, George Dubrava, Richard Ting, Anna Mitchell Front row: Vicky Coleman, Gloria Lui, Kanchana Perera, Maria Musumeci

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Corporate GovernanceFigure 8: Northern Territory Treasury Corporation’s Corporate Governance Framework

Corporate GovernanceThe Corporation’s objective is to provide the Northern Territory Government with cost-effective funding, efficient financial management and reliable service and advice. The Corporation’s Advisory Board and management are committed to achieve this objective while upholding highstandards of corporate governance, transparency and accountability through controls, policies and best practice frameworks.

The Corporation was established in June 1994 and is constituted under the Northern Territory Treasury Corporation Act (the Act). The Under Treasurerof Northern Territory Treasury is designated as the Corporation sole under the Act and as such represents the Crown in right of the Territory. Under section 5 of the Act, the Corporation is subject to the direction of the Treasurer of the Northern Territory.

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Figure 9: Northern Territory Treasury Corporation’s Reporting Structure

Strategic DirectionCorporate ObjectivesThe Corporation’s objectives are to:• safeguard the Territory’s financial

resources by establishing and regularly reviewing credit limits and maintaining adequate internal controls and staffing;

• reduce the Territory’s cost of borrowings through the effective control and management of its interest rate risk and to maintain the exposure to interest rate risk at an acceptable level;

• ensure the Corporation’s continued ability to meet the Territory’s finance obligations in an orderly manner, as and when they fall due, in both the short and long term, through liquidity management;

• minimise the Territory’s cost of foreign currency requirements through the effective control and management of its foreign exchange risk and to remove the exposure to foreign exchange risk; and

• adopt improved risk management strategies through the ongoing evaluation and review of appropriate risk management techniques by utilising specialist resources available to the Corporation.

Northern Territory Treasury’s Senior Management GroupThe Corporation reports to Northern Territory Treasury’s Senior Management Group (SMG), which is responsible for the strategic policy direction of Northern Territory Treasury and its business units.This includes managing performance and improving management and business practices. The main role of SMG is corporate governance and developing corporate capabilities, such as people, systems and environment in Northern Territory Treasury.Northern Territory Treasury’s Risk and Audit CommitteeAudit and compliance reports submitted to Northern Territory Treasury’s Senior Executive are reviewed by Northern Territory Treasury’s Risk and Audit Committee.The committee oversees the internal audit, risk management and compliance with legislative requirements.

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Advisory BoardUnder section 8 of the Northern Territory TreasuryCorporation Act, the Corporation has establishedan Advisory Board to assist the Under Treasurerwith issues relating to the Corporation’s operations.The Advisory Board is constituted to be theUnder Treasurer and no more than five otherpersons appointed by the Treasurer of theNorthern Territory. The Advisory Board meetsquarterly to review and monitor the performanceof the Corporation, its business risks and itsperformance in relation to its objectives. It alsoprovides guidance on policy, analysis of economicconditions and advice on aligning borrowing andinvesting intentions with interest rate expectations.Matters Considered by the Advisory BoardThe Advisory Board receives specific papers and management reports that cover:• financial statements;• budget position;• performance and progress reports

on the investment portfolio;• the Corporation’s borrowing and

lending programs; and• financial and operational risk exposure

reports covering interest rates, counterparties and liquidity.

Monthly management reports are provided to Northern Territory Treasury Senior Executive.The members of the Advisory Board are:Mr Alan TregilgasUnder Treasurer and Chair Northern Territory Treasury

Mr Tregilgas was appointed Under Treasurer in August 2012. He has extensive experiencein the finances of national, state and municipal governments having held positions with the Commonwealth, South Australian and Northern Territory Treasury Departments. In addition,Mr Tregilgas has held the positions of Director (Public Sector) with Standard & Poor’s

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Ratings Group and Northern Territory Utilities Commissioner, and until recently was a senior associate with Deloitte Access Economics.Mr Anthony Cole AOExternal Board Member and Member of the Audit CommitteeMr Cole was appointed to the Board in June 1995 and is a Senior partner of Mercer. Mr Cole andhis team advise institutional investors, including superannuation funds, on the developmentof their investment programs. Mr Cole’s experience includes nearly 30 years in senior Commonwealth Government economic posts. These included Principal Adviser to the then Treasurer, the Hon. Paul Keating MP, Deputy Secretary (Economic) to the Department of the Prime Minister and Cabinet, and Secretary to the Treasury.Mr Richard Ryan AOExternal Board Member and Chair of the Audit CommitteeMr Ryan was appointed to the Board in June 1995 and is a Fellow of the Institute of Chartered Accountants, a Companion of the Institution of Engineers Australia and a Companion of the Institute of Management (UK). He was previously Chancellor of Charles Darwin University, Chairof the Menzies School of Health Research and President of the National Heart Foundation.Mr Ryan is also a non-executive director of several public companies.Mr John MontagueAssistant Under Treasurer (Funds Management) Northern Territory TreasuryMr Montague began his career with Westpac Banking Corporation in 1986 holding various trading and management positions in Sydney andMelbourne within the bank’s Treasury Fixed Interest division. He was seconded to Northern Territory Treasury Corporation as Manager Financial Assets and Liabilities in 1994 and was appointed General

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Manager in November 1996. Mr Montague wasappointed Northern Territory Treasury’s AssistantUnder Treasurer (Funds Management) in 2011 andCommissioner of Superannuation in April 2012.The Corporation reports through Mr Montagueand he represents the Corporation on the SMG ofNorthern Territory Treasury.Mr David Braines-MeadAssistant Under Treasurer (Budgets and Finance) Northern Territory TreasuryMr Braines-Mead is the Assistant Under Treasurer (Budgets and Finance) in Northern Territory Treasury and has held various positions at the director level within the Financial Management Group since joining Northern Territory Treasuryin 2004. He represents Treasury on both intergovernmental and whole of government committees. Prior to this, Mr Braines-Mead had over 15 years experience within the accounting profession both in Darwin as a Senior Audit Manager with Ernst and Young and before that in the UK with various chartered accountancy firms.

Mr Braines-Mead is a fellow of the UK-basedAssociation of Chartered Certified Accountants.Northern Territory Treasury Corporation Audit CommitteeThe Audit Committee is a sub-committee of the Advisory Board. It provides advice to the Chair on operational issues and in relation to internal and external audits and meets prior to all Advisory Board meetings, or as necessary. As at 30 June 2012, the Audit Committee comprisedthe two external Advisory Board members and is chaired by Mr Ryan.KPMG undertakes the internal audit review of the Corporation’s business while the Auditor-General for the Northern Territory carries out the external audit of the Corporation’s activities.A partner from KPMG attends Audit Committee meetings at the request of the Audit Committee. The Auditor-General may also be invited toattend meetings during the year to provide direct comment to the committee members.

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Back row: Alan Tregilgas, Alex Pollon, David Braines-Mead, Richard Ryan Front row: Vicky Coleman, Anthony Cole, John Montague

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Treasury Corporation ManagementMr Alex PollonGeneral ManagerMr Pollon joined the Corporation in September 1998 as Manager Financial Assets and Liabilities. In December 2004, he was elevated to Assistant Director and was appointed General Manager ofthe Corporation in May 2010. He is responsible for the overall management of the Corporation’s staff and resources, ensuring the efficient, effectiveand appropriate control of the borrowing, lending and investing activities on behalf of government. Prior to joining the Corporation, Mr Pollon wasthe Manager Treasury Services for the Territory Insurance Office. Mr Pollon is a member of the Australian Institute of Company Directors and holds Australian Financial Markets Association dealer accreditation.Ms Vicky ColemanManager Financial Administration and Corporate SecretaryMs Coleman joined Northern Territory Treasury in April 2000 and was appointed Manager Financial Administration in February 2002. Ms Colemanis responsible for the Corporation’s financial reporting, budgeting, corporate governance and risk management functions. Prior to joining Northern Territory Treasury, Ms Coleman heldvarious management positions in the private sector mainly in the finance sector. She is a Certified Practising Accountant, a member of the Australian Institute of Company Directors and the Financeand Treasury Association, and holds a Certificate in Governance and Risk Management from the Chartered Secretaries Australia.Mr Richard TingManager Financial Assets and LiabilitiesMr Ting joined the Corporation in November 2011 as Manager Financial Assets and Liabilities. Heis responsible for the day to day activities and operational effectiveness of the Treasury functions undertaken by the Corporation.

Mr Ting held various positions in both government and banking sectors prior to joining the Corporation. He is a CertifiedPractising Accountant. In addition to his tertiary qualifications, he achieved a Masters of Business Administration and also holds a Graduate Diploma in Applied Finance and Investment from theSecurities Institute of Australia.Risk ManagementRisk recognition and management is an essentialfunction of the Corporation, given the natureof its operations. The Corporation has variousframeworks, policies and controls in place toensure all key risks are identified and managed.Anti-Money Laundering and Counter Terrorism Financing (AML/CTF) LegislationThe Corporation is subject to the suspiciousmatters reporting requirements of the AML/CTF Act.A staff member is appointed Compliance Officerand oversees the program and monitors riskmitigation processes by maintaining the currentAML/CTF program and supporting policies.Business Continuity ManagementThe Corporation has a business continuity plan to ensure it is able to meet its financial obligations during an event that disrupts normal processes and procedures. The plan is reviewed on a regular basis to ensure all critical functions are captured and contingency arrangements are documented.Compliance Self-Assessment ReviewsThe Corporation uses compliance self-assessment reviews to identify and monitor risk areas in its environment. Questionnaires are completed by management monthly and associated reports are reviewed by the Advisory Board quarterly and audited by the Corporation’s internal auditors on a semi-annual basis.

Function Type Period Internal/External Outcomes2010-11 financial statements Audit 30/06/11 Internal Unqualified audit op

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Insurance ArrangementsInsurable risks are risks that are generally related to workers compensation, assets and inventories, public liabilities and indemnities. They exclude financial risk and legal costs in action.In line with Northern Territory Government policy, the Corporation self insures. As a GBD, the Corporation can and has elected to pay a premium to Northern Territory Treasury as its host agencyfor workers compensation insurance, in lieu of purchasing commercial insurance. In 2011-12 there were no self-insurance claims. This is consistent with 2010-11.Occupational Health and SafetyOccupational health and safety (OHS) services are provided to the Corporation as part of Northern Territory Treasury’s OHS program. Northern Territory Treasury’s OHS committee meets quarterly and regularly reports toNorthern Territory Treasury’s SMG. The committee reports and advises on workplace safety and systems of work, developing, implementing and monitoring OHS measures, advocating acceptable and responsible practices by employees and others, and promoting a health and safety ethos.All managers and supervisors are required to undertake a training session facilitated by the Department of Business and Employment to ensure appropriate awareness of the OHSrequirements within the Northern Territory Public Service.Table 13: Audits Undertaken During the Year

ComplianceAs part of its corporate governance framework, theCorporation undergoes several audits and reviewprocesses during the year. These are undertakenby both internal and external auditors.Policy and ProceduresFormal policy and procedure manuals have been created and provided to all staff members. Policy and procedure manuals are updated annually or as required.Internal AuditThe Corporation has an internal audit function reporting directly to the Corporation’s Advisory Board, Audit Committee and Northern Territory Treasury’s Senior Executive. The internal auditor, KPMG, audits the Corporation’s financial statements and reviews its risk and operational environments.External AuditThe Auditor-General of the Northern Territory reviews the Corporation’s financial statements and operating environment and reports these findings annually to the Under Treasurer andNorthern Territory Parliament. The Auditor-General also attends the Corporation’s Audit Committee meetings as requested.

Externalinion

Unqualified audit opinionCompliance self-assessment Review 30/09/11

31/03/12Internal No significant

matters identified

Information technology controls Audit 30/06/12 Internal No significant matters identified

Interim period review Audit 30/06/12 Internal/external No significant matters identified

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Territory EconomyThe following section provides an overviewof the Territory economy, including the overallperformance of the economy in 2011-12 and theoutlook for 2012-13.While the local economy has little direct impact on the Corporation’s performance, the overall healthof the Territory economy and level of economic activity does influence the underlying funding requirements of government and the assessment of the Territory’s credit rating. Updates of key economic indicators are published regularlyand can be downloaded at www.nt.gov.au/ntt/ economics.Structure of the EconomyThe Territory accounts for 19 per cent of Australia’s total land mass and just over 1 per cent of Australia’s total population, with approximatelyone-third of the Territory’s population being Indigenous. The Territory has an economy dominated by mining and energy production. The Territory is also characterised by a large public sector and a significant Australian Defence Force presence.The small size of the Territory economy means that large, typically resource-based projects can havea substantial impact on investment and production, resulting in volatile growth patterns. Additionally,the significance of the mining and tourism industries makes the Territory economy particularly reliant on exports and as a result it is susceptibleto developments in key export markets and the world economy generally.Gross State ProductThe Territory’s gross state product (GSP) is estimated to have increased by 2.4 per cent to$16.7 billion in 2011-12. Growth is expected to have been underpinned by large increases in private sector investment, which has more than offset declining levels of public investment and consumption, and a narrowing trade surplus.Investment expenditure in the Territory is estimated to have increased by 14.9 per cent to $4.4 billion

in 2011-12. This is primarily due to strong growthin private sector machinery and equipmentexpenditure and engineering activity related to thedevelopment of a number of major projects suchas the Montara and Kitan oil fields in the TimorSea, a scheduled maintenance shutdown of theDarwin liquefied natural gas (LNG) plant and thecommencement of INPEX’s $34 billion Ichthysproject. Growth in investment is also expectedto be driven by strong growth in residentialconstruction activity due to the commencementof several major projects such as the Darwincorrectional facility, the marine supply base andthe INPEX workers’ village, and is expected to besupported by higher levels of mineral and energyexploration expenditure.Public sector investment is estimated to have declined by 24.3 per cent in 2011-12, as the Territory Government’s capital works programsteps down from record counter-cyclical highs and the Commonwealth stimulus measures end.Total consumption expenditure in the Territory is estimated to have decreased by 0.3 per cent to$13.8 billion in real terms, detracting 0.3 per cent from economic growth. Household consumption, which accounts for around 60 per cent of total consumption, is expected to have maintained similar levels to 2010-11, constrained by the increased propensity to save and debt aversionamong households continuing into 2011-12, as well as moderating employment and modest population growth in 2011-12. Public sector consumption expenditure is estimated to have decreasedby 0.7 per cent, with declining state and local government consumption expenditure more than offsetting 1.0 per

38

cent growth in Commonwealth expenditure.The Territory’s economic growth rate is forecast to strengthen to 3.9 per cent in 2012-13, dueto strong growth in private sector investment and modest growth in household consumption. Private sector investment is expected to be driven by major projects including the INPEX workers’

39

accommodation village and LNG plant, marinesupply base and correctional facility, as well asincreased residential housing activity as a resultof land releases in Palmerston. However, theTerritory’s trade surplus is forecast to narrow byabout 40 per cent reflecting increased imports ofkey machinery and equipment and pre-assembledmodules for the construction of INPEX’s LNG plantat Blaydin Point.External Economic EnvironmentOverseas exports constitute over 35 per cent of Territory GSP. Major Territory exports include LNG, crude oil, mineral ores, and tourism-related services.The International Monetary Fund (IMF) forecasts global economic growth to fall to 3.5 per cent before strengthening to 3.9 per cent in 2013, reflecting stronger growth in many emergingand developing countries, despite the continued uncertainty over the economic and financial situation in Europe.Despite weakness in many developed nations, the strength of demand from Asian nations is expected to result in the Australian economy outperforming most other advanced economies in 2012 and2013, with the IMF forecasting growth for Australia at 3.0 per cent for 2012, increasing to 3.5 per cent. The Territory is well positioned to capitalise on this resource growth.International TradeInternational trade forms an integral part of the Territory economy. The Territory’s trade surplus is expected to have narrowed by 44.1 per cent to 1.1 billion in 2011-12. The decline reflects a17.0 per cent decrease in goods exports, largely reflecting the scheduled maintenance shutdown of the Darwin LNG plant and the Bayu-Undan offshore processing facility in April 2012.In 2012-13, the Territory’s trade surplus is forecast to narrow further by 40.9 per cent to $671 million, reflecting an increase in imports of machinery, equipment and parts related primarily to the construction of the $34 billion Ichthys project. The

increase in imports is expected to be partly offsetby an increase in oil exports as the Kitan andMontara oilfields increase production.PopulationIn line with slowing economic activity, moderating jobs growth, lower net overseas migration and the relocation of the 7th Royal Australian Regiment to South Australia, the Territory’s population growth rate slowed to 0.8 per cent in 2011. Nationally, Australia’s population growth rate slowedto 1.4 per cent in 2011.The Territory’s population growth rate is forecast to strengthen to 1.6 per cent in 2012 and to 2.2 per cent in 2013. Strengthening population growth is largely being driven by the commencement of construction of a numberof major projects, including INPEX’s LNG plant, the $495 million Darwin correctional facility, the$110 million marine supply base, redevelopment of the Montara oilfield platform and maintenance of both the ConocoPhillips Darwin LNG plant andBayu-Undan oilfield and the associated increased demand for construction labour.Labour ForceResident employment growth in the Territory moderated to 0.5 per cent in 2011-12 mainly reflecting softer labour demand following the completion of several major projects in 2011.In 2012-13, resident employment growth is forecast to strengthen to 2.0 per cent as a result of stronger economic activity associated with works on major projects, including INPEX, the Darwin correctional facility and the new marine supply base. Inaddition, defence expenditure on developing infrastructure on major bases in the Territory is expected to support employment growth.PricesInflation in Darwin was constrained in 2011 by slowing growth in private consumption, investment and population levels and a weakening labour market, reflecting the impact of the completion ofa number of employment-intensive major projects

40

on economic activity. In addition, lower importprices, primarily due to a sustained high AUD, alsocontained the Darwin inflation rate in 2011, whichremained steady at 2.8 per cent over the year.Higher tobacco and alcohol, financial service, transportation, and food and non-alcoholic beverage prices exerted upward pressure on Darwin’s inflation rate, while lower prices for household contents and service, and recreation and culture partially offset growth.Growth in the inflation rate in Darwin is forecast to slow to 2.1 per cent in 2012 reflecting moderate growth in private consumption, subdued employment and population growth, and a lack of capacity constraints.In 2013, inflation in Darwin is forecast to strengthen to 3.2 per cent driven by stronger aggregate demand. Increased private construction investment and private housing investment is expected aswork on the Ichthys project, Darwin correctional facility and marine supply base ramps up. In addition, a recovery in household consumption is expected, driven by stronger employment, wages and population growth.

Mining and EnergyIn terms of output, mining is the largest industry in the Territory, accounting for 17.4 per cent of GSPin 2010-11, compared to 8.8 per cent nationally.In 2010-11, the inflation-adjusted value of mineral and energy production in the Territory decreased by 5.8 per cent to $5 billion, driven by lower demand for resource commodities as global economic growth slowed, as well as lower offshore oil production following the decommissioning ofthe Challis, Cassini and Jabiru oilfields and lower production from the Laminaria-Corralina oilfields due to natural decline.In 2011-12, the inflation-adjusted value of mining and energy production is estimated to have increased by 4.7 per cent to $5.2 billion, as the Kitan oilfield increased production. Growth was partly offset by lower LNG production following the scheduled temporary dual-shutdown of both the Darwin LNG plant and the offshore facility atBayu-Undan for maintenance in April and May 2012.The inflation-adjusted value of mineral and energy production in the Territory is forecast to increase

Songa Venus drilling rig at the Ichthys Field Photograph provided by INPEX

41

by 10.6 per cent to $5.7 billion in 2012-13. Growthwill be primarily driven by increasing output inthe energy sector related to higher levels of oilproduction reflecting the commencement ofproduction from the Kitan and Montara oilfields.ConstructionThe construction industry accounted for10.7 per cent of Territory GSP in 2010-11 and interms of output was the second largest industry inthe Territory. The Territory’s construction industryemployed over 11 000 people in 2010-11, or10.1 per cent of the resident labour force.In inflation-adjusted terms, construction activity in the Territory is expected to increase by51.4 per cent to $2.7 billion in 2011-12, primarily driven by engineering construction associated with the Montara and Kitan oilfield developments, the maintenance shutdown of the Darwin LNG plant and the commencement of work related to the Ichthys project.In 2012-13, the value of construction activity in the Territory is forecast to increase by 87.9 per centto $5.1 billion, largely driven by engineering activity associated with the INPEX-related works. Residential construction activity is forecast to increase by 9.5 per cent to $562 million. The level of construction activity is expected to increaseas the Territory’s population grows as a result of increased economic activity. In responseto strengthening population growth caused by increased economic activity, residential construction will be required in the new land release areas of Palmerston and Muirhead. Growth in unit developments in Darwin and Palmerston is forecast in 2012-13 with the likely construction of a number of developments.Non-residential construction is forecast to increase by 43.6 per cent to $971 million in 2012-13. The large increase in growth reflects construction of Darwin’s new correctional facility and the INPEX workers’

village. The combined value of both projects over the next three years is $795 million. Other projects such as the Charles Darwin Centre

42

in the Smith Street Mall, SKYCITY Casino andcontinued works at Darwin International Airport arealso expected to contribute to growth.TourismIn 2010-11, international travel to the Territory decreased due to adverse economic conditions experienced across the UK, Europe and Japan. This affected household disposable income levels in many of the Territory’s key international tourist markets.In addition, the continued appreciation of the AUD adversely impacted Territory tourism not only by discouraging international visitors but also by encouraging Australians to travel overseas, instead of within Australia.The continued strength of the AUD as well as continued economic weakness among many of the Territory’s key international source markets have dampened tourist demand in the Territory in2011-12. These conditions are expected to remain for the near future and continue to impact tourist numbers to Australia and the Territory in 2012-13.However, partly offsetting this, the Ichthys gas field development is expected to have a positive effect on Territory tourism through increased visitation associated with the project’s workforce.Longer Term Economic OutlookOn 13 January 2012, INPEX made its final investment decision, confirming that it would construct a two-train LNG processing plant (with approval for up to six trains in total) at Blaydin Point on Darwin Harbour. The $34 billion Ichthys project includes approximately $13 billion expenditure onshore in the Darwin region. This expenditure includes construction of the processing facilityand laying of the associated 850 kilometre gas transportation pipeline (of which around 250 kilometres will be in Darwin Harbour and Territory-administered waters). Also included isthe construction of a workers’ village at Howard Springs, to house up to 3500 workers.

% $0002012-1322-Aug-12 3.41 50 00015-Sep-12 6.25 300 00015-Dec-12 4.55 3 49615-Dec-12 4.60 1 75315-Dec-12 4.70 4 36915-Dec-12 4.75 815-Dec-12 4.80 315-Dec-12 4.90 22415-Dec-12 4.95 215-Dec-12 5.00 22415-Dec-12 5.05 5015-Dec-12 5.10 83615-Dec-12 5.20 25215-Dec-12 5.25 83015-Dec-12 5.30 1 14715-Dec-12 5.35 7815-Dec-12 5.40 1 20515-Dec-12 5.45 76715-Dec-12 5.50 1 70615-Dec-12 5.60 1 51215-Dec-12 5.85 2515-Dec-12 5.90 17315-Dec-12 5.95 6915-Dec-12 6.00 1 57915-Dec-12 6.10 48215-Dec-12 6.35 1715-Dec-12 6.40 18015-Dec-12 6.45 31215-Dec-12 6.50 59515-Dec-12 6.75 1615-Dec-12 6.80 11315-Dec-12 6.90 24020-Apr-13 5.50 25 00012-May-13 4.50 75015-Jun-13 3.85 67315-Jun-13 3.90 83115-Jun-13 4.00 2 90315-Jun-13 4.25 10115-Jun-13 4.40 12715-Jun-13 4.50 8315-Jun-13 5.05 33515-Jun-13 5.10 8315-Jun-13 5.15 7515-Jun-13 5.20 20315-Jun-13 5.25 9115-Jun-13 5.30 3915-Jun-13 5.35 293

31

Appendix A: Outstanding Issued DebtPage31 Appendix A: Outstanding Issued

Debt35 Appendix B: Outstanding Loans36 Appendix C: Investment

Guidelines

37 Appendix D: Glossary of Terms

As at 30 June 2012Maturity Date Coupon Rate Face Value

31

32

Maturity Date Coupon Rate

%15-Jun-13 5.4015-Jun-13 5.4515-Jun-13 5.5015-Jun-13 5.5515-Jun-13 5.6015-Jun-13 5.6515-Jun-13 5.7015-Jun-13 5.7515-Jun-13 5.8015-Jun-13 5.9015-Jun-13 6.7015-Jun-13 6.7515-Jun-13 6.8015-Jun-13 6.8515-Jun-13 6.95

% $00015-Dec-13 6.05 25815-Dec-13 6.10 61415-Dec-13 6.20 21515-Dec-13 6.25 2015-Dec-13 6.40 1415-Dec-13 6.55 1915-Dec-13 6.60 38515-Dec-13 6.70 10915-Dec-13 6.85 115-Dec-13 6.95 11001-May-14 8.00 5 00015-Jun-14 3.95 33915-Jun-14 4.00 1 43315-Jun-14 4.10 1 19415-Jun-14 4.35 2115-Jun-14 4.40 19915-Jun-14 4.45 11615-Jun-14 4.50 77015-Jun-14 4.60 13515-Jun-14 4.65 1015-Jun-14 4.70 10915-Jun-14 4.80 45615-Jun-14 4.85 14115-Jun-14 4.90 41715-Jun-14 5.00 2 20215-Jun-14 5.60 1615-Jun-14 5.65 28615-Jun-14 5.70 1 32815-Jun-14 5.80 1 01415-Jun-14 5.95 4615-Jun-14 6.00 46915-Jun-14 6.05 14015-Jun-14 6.10 81115-Jun-14 6.15 6115-Jun-14 6.20 48915-Jun-14 6.30 27

2013-1415-Sep-13 5.15 3115-Sep-13 5.20 10115-Sep-13 5.30 44918-Sep-13 5.25 50001-Oct-13 5.00 5

00015-Oct-13 6.75 400 00015-Dec-13 4.65 210

15-Dec-13 4.70 82015-Dec-13 4.80 1

31615-Dec-13 4.85 215-Dec-13 4.90 5015-Dec-13 5.00 11015-Dec-13 5.10 715-Dec-13 5.15 8015-Dec-13 5.20 40415-Dec-13 5.25 9615-Dec-13 5.30 1

02215-Dec-13 5.35 27015-Dec-13 5.40 1

45115-Dec-13 5.45 5515-Dec-13 5.50 98715-Dec-13 5.55 215-Dec-13 5.60 67715-Dec-13 5.70 36215-Dec-13 5.75 215-Dec-13 5.80 15315-Dec-13 5.85 8715-Dec-13 5.90 40815-Dec-13 5.95 11415-Dec-13 6.00 396

Outstanding Issued Debt (continued)

Face Value$000

857457

3 29640

1 08910

146101786

490117

22667224

T O T AL 2012 - 13 5.76 411 378

Maturity Date Coupon Rate Face Value

T O T AL 2013 - 14 6.66 434 136 2014-1514-Jul-14 5.75 500 00001-Oct-14 5.00 5 00015-Dec-14 4.75 38315-Dec-14 4.80 72015-Dec-14 4.90 51215-Dec-14 4.95 715-Dec-14 5.00 26015-Dec-14 5.10 1615-Dec-14 5.25 48

15-Dec-15 5.05 91

33

Outstanding Issued Debt (continued)

Maturity Date Coupon Rate Face Value

Maturity Date Coupon Rate Face Value

% $000 % $00015-Dec-14 5.30 403 15-Dec-15 5.10 2215-Dec-14 5.40 447 15-Dec-15 5.20 16615-Dec-14 5.45 92 15-Dec-15 5.35 23715-Dec-14 5.50 1 012 15-Dec-15 5.40 58815-Dec-14 5.60 667 15-Dec-15 5.45 2415-Dec-14 5.95 605 15-Dec-15 5.50 2 12415-Dec-14 6.00 2 161 15-Dec-15 5.55 15715-Dec-14 6.10 1 914 15-Dec-15 5.60 2 46615-Dec-14 6.45 192 15-Dec-15 5.70 1 32615-Dec-14 6.50 473 15-Dec-15 5.90 115-Dec-14 6.60 801 15-Dec-15 5.95 29915-Dec-14 6.85 43 15-Dec-15 6.00 1215-Dec-14 6.90 74 15-Dec-15 6.25 3515-Dec-14 7.00 685 15-Dec-15 6.30 11618-Mar-15 5.50 1 250 15-Dec-15 6.40 14515-Jun-15 4.05 470 15-Dec-15 6.55 16115-Jun-15 4.10 637 15-Dec-15 6.60 17815-Jun-15 4.20 849 15-Dec-15 6.70 36415-Jun-15 4.45 3 15-Dec-15 6.75 2115-Jun-15 4.50 142 15-Dec-15 6.80 6015-Jun-15 4.55 151 15-Dec-15 6.90 5615-Jun-15 4.60 1 132 20-May-16 5.00 5 00015-Jun-15 4.70 35 01-Jun-16 6.46 7 32415-Jun-15 5.45 2 15-Jun-16 4.15 16015-Jun-15 5.50 111 15-Jun-16 4.20 18815-Jun-15 5.55 36 15-Jun-16 4.30 27515-Jun-15 5.60 142 15-Jun-16 4.55 515-Jun-15 5.70 245 15-Jun-16 4.60 4215-Jun-15 5.75 195 15-Jun-16 4.65 8615-Jun-15 5.80 1 223 15-Jun-16 4.70 51615-Jun-15 5.90 2 729 15-Jun-16 4.80 35815-Jun-15 5.95 140 15-Jun-16 4.95 10515-Jun-15 6.00 323 15-Jun-16 5.00 87115-Jun-15 6.10 540 15-Jun-16 5.10 60415-Jun-15 6.65 175 15-Jun-16 5.15 40215-Jun-15 6.70 744 15-Jun-16 5.20 56915-Jun-15 6.80 463 15-Jun-16 5.30 41415-Jun-15 6.85 22 15-Jun-16 5.35 42015-Jun-15 6.90 39 15-Jun-16 5.40 60015-Jun-15 7.00 255 15-Jun-16 5.50 942

15-Jun-16 5.55 6T O T AL 2014 - 15 5.74 528 568 15-Jun-16 5.60 369

15-Jun-16 5.70 8362015-16 15-Jun-16 5.75 3120-Oct-15 6.25 500 000 15-Jun-16 5.80 24420-Oct-15 6.50 20 000 15-Jun-16 5.85 82115-Dec-15 4.85 49 15-Jun-16 5.90 1 98815-Dec-1515-Dec-15

4.905.00

2061 118 15-Jun-16 6.00 2 250

15-Dec-15 5.05 91

34

T O T AL 2015 - 16 6.22 555 448

30-Sep-2215-Mar-2320-May-23TOTAL 2022-232023-2415-Mar-2420-May-24 T O T AL 2023 - 24 2024-2515-Mar-2520-May-25

8.24 5 0006.00 10 0005.00 5 0006.31 20 000

6.00 124 7005.005.96

5 000129 700

6.00 18 9008.50 5 000

T O T AL 2024 - 25 2025-2615-Sep-25

6.52

8.50

23 900

24 974

% $000

2016-1720-Nov-16 5.75 500 00015-Dec-16 4.95 49315-Dec-16 5.00 1 54115-Dec-16 5.10 1 66615-Dec-16 5.45 8115-Dec-16 5.50 14715-Dec-16 5.60 75615-Dec-16 5.95 7015-Dec-16 6.00 95015-Dec-16 6.05 2415-Dec-16 6.10 1 24515-Dec-16 6.20 9815-Jun-17 4.35 45215-Jun-17 4.40 70915-Jun-17 4.50 65915-Jun-17 4.65 13315-Jun-17 4.70 1515-Jun-17 4.80 12215-Jun-17 4.85 1215-Jun-17 4.90 6415-Jun-17 5.00 60915-Jun-17 5.95 25315-Jun-17 6.00 1 33015-Jun-17 6.05 215-Jun-17 6.10 1 28815-Jun-17 6.15 37015-Jun-17 6.20 43715-Jun-17 6.30 193TOTAL 2016-17 5.74 513 7192017-1817-Nov-17 4.75 500 000TOTAL 2017-18 4.75 500 0002018-1920-Sep-18 4.75 500 000TOTAL 2018-19 4.75 500 0002019-2008-Oct-19 8.14 5 000TOTAL 2019-20 8.14 5 000

35

Outstanding Issued Debt (continued)`

Maturity Date Coupon Rate Face Value

Maturity Date Coupon Rate Face Value% $000

2021-2215-Mar-22 6.06 5 000T O T AL 2021 - 22 6.06 5 000

2022-23

15-Mar-26 6.00 29 700 T O T AL 2025 - 26 7.14 54 674 2026-2715-Mar-27 6.00 8 400TOTAL 2026-27 6.00 8 4002027-2815-Mar-28 6.00 7 900TOTAL 2027-28 6.00 7 9002028-2915-Mar-29 6.00 7 500TOTAL 2028-29 6.00 7 5002029-3015-Mar-30 6.00 42 000T O T AL 2029 - 30 6.00 42 000 TOTAL 5.70 3 747 323

36

Appendix B: Outstanding LoansAs at 30 June 2012

Face Value$000

General Government AgenciesCentral Holding Authority 2 031 610Department of Housing, Local Government and Regional Services

82 226

Total 2 113 836

Government Business DivisionsDarwin Port Corporation 35 408Land Development Corporation 25 000NT Home Ownership 186 356

Total 246 764

Government Owned CorporationsPower and Water Corporation 1 197 929

Total 1 197 929

Local AuthoritiesRoper Gulf Shire Council 361

Total 361

TOTAL 3 558 890

37

Appendix C: Investment GuidelinesAs at 30 June 2012

InstitutionStandard & Poor’s

Credit R a ting Limit AUD

$000Short-Term Investments (< 1 year)Governments A-1+ 150 000

A-1 100 000A-2 75 000

Financial Institutions A-1+ 75 000A-1 50 000A-2 30 000

Structured Finance Instruments A-1+ 30 000A-1 20 000A-2 10 000

Corporates A-1+ 30 000A-1 20 000A-2 10 000

Long-Term Investments (> 1 year)Governments AAA 100 000

AA+ 80 000AA 60 000AA- 50 000

Financial Institutions AAA 50 000AA+ 40 000AA 30 000AA- 20 000A+ 10 000A 5 000

Structured Finance Instruments AAA 20 000AA+ 15 000AA 10 000AA- 5 000

Corporates AAA 20 000AA+ 15 000AA 10 000AA- 5 000

38

Appendix D: Glossary of TermsAAA The highest credit rating assigned by credit rating agencies such as

Moody’s Investor Services and Standard & Poor’s.Advisory Board The board established under section 8 of the Northern

Territory Treasury Corporation Act to exercise such powers and perform such functions as determined by the Treasurer.

Agency A unit of government administration, or office or statutory corporation, nominated in an Administrative Arrangements Order, as an agency for the purpose of the Financial Management Act.

Bank Bill Swap Rate (BBSW) Australian Financial Markets Association (AFMA) bank-bill reference rates published daily on AFMAdata page ‘BBSW’.

Bond A bond is a negotiable certificate or debt security that acknowledges the indebtedness of the bond issuer to the holder. It is a formal agreement to pay interest at defined fixed intervals and repay the borrowed principal at maturity.

Debt A debt is an obligation owed by one party (the debtor) to a second party (the creditor). A debt is created when a creditor agrees to lend or investa stated principal amount of funds to a debtor.

Designated Investments Northern Territory Treasury Corporation provides Territory Bonds as Designated Investments under the Australian Department of Immigration and Citizenship’s (DIAC’s) Business Skills class of migration (Investorand State/Territory Sponsored Investor) and Investor/Retirement (Sub class 405) visa program.

Central Financing Authorities Central financing authorities are institutions established by state and territory governments primarily to provide finance for their respective governments and other corporations owned or controlled by those governments. CFAs borrow funds, mainly by issuing securities, and on-lend them to their public sector clients. CFAs also administer and invest surplus funds on behalf of government. However, they alsoengage in other financial intermediation activity for investment purposes, and may engage in the financial management activities of the parent government.

Credit Foncier Loan A loan that is repaid in instalments comprising both principal and interest components.

Discount The amount by which the value of a security is less than its face value.Face Value The amount of money indicated on a security, or inscribed in

relation to a security, as being due to be paid on maturity.Fixed Interest Interest on investments such as bonds and debentures, paid

at a predetermined and unchanging rate for a specified period, the life of the bond or debenture.

39

Floating Rate Note Medium to long-term debt securities carrying a variable interest rate

adjusted periodically by a margin against a benchmark rate.Government Business Divisions (GBDs)

Entities that operate on a commercial basis and have a significantproportion of their operating cost recovered through charges on goodsand services provided to users.

Government Owned Corporations (GOCs)Entities that operate on a commercial basis whose operations are notguaranteed by the Crown and do not make the Territory liable for itsdebts, liabilities or obligations.

Inscribed Stock Securities for which the ownership is recorded in a registry. The owner

is issued with a certificate, which is not itself transferable. The stock canonly be transferred by use of the appropriate documents.

Interest Rate Risk Exposure to loss resulting from a change in interest rates. Hedging strategies are designed to minimise, possibly eliminate, interest rate risk.

Local Authorities Town, municipal and shire councils within the Northern Territory.Margin The difference between a benchmark interest rate and the rate

charged to an individual borrower. It is sometimes called the spread.

Maturity Date The date on which the final bond payment is to be made.Operational Risk The risk of loss, whether direct or indirect, arising from

inadequate or failed internal processes, people or systems, or from external events. It encompasses risks inherent in the agency’s operating activities such as fraud risk, settlement risk, legal risk, accounting risk, personnel risk and reputation risk.

Premium The amount by which the value of a security is greater than its face value.Principal The nominal amount or face value of a bond.Promissory Note Issues of a debt security by the Northern Territory Treasury

Corporation with the undertaking to pay the stated amount to the note holder on a specified date.

Security A security is generally a fungible, negotiable financial instrument representing financial value.

Syndication A formal process of issuing debt securities by the Northern Territory Treasury Corporation. Bonds are structured and issued to a groupof investors arranged and administered by one or more financial intermediaries known as arrangers.

Territory Bonds Issues of Northern Territory Treasury Corporation inscribed stock to retail investors.

3940

Financial StatementsPage

Certification of Financial Statements 40Auditor-General’s Report to the Treasurer 41Statement of Comprehensive Income 43Statement of Financial Position 44Statement of Cash Flows 45Statement of Changes in Equity 46Notes to the Financial Statements1. LEGAL STATUS, ASSOCIATED GUARANTEES AND ENTITY DOMICILE 472. SUMMARY OF ACCOUNTING POLICIES 473. NEW STANDARDS AND INTERPRETATIONS NOT YET ADOPTED 514. INTEREST REVENUE 535. OTHER REVENUE 536. INTEREST EXPENSE 547. OTHER EXPENSES 558. RETAINED PROFITS 559. CONTRIBUTED CAPITAL 5510. TRADE AND OTHER RECEIVABLES 5611. LOANS 5612. TRADE AND OTHER PAYABLES 5613. PROVISIONS AND TAX LIABILITIES 5714. BORROWINGS 5815. FINANCIAL INSTRUMENTS AND RISK MANAGEMENT 5816. FAIR VALUES OF FINANCIAL INSTRUMENTS 6717. RECONCILIATION OF NET PROFIT TO NET CASH FLOWS FROM OPERATING ACTIVITIES 6918. AUDITOR’S REMUNERATION 6919. FIDUCIARY ACTIVITIES 6920. DIVIDENDS 7021. ADVISORY BOARD 7022. FEES AND COMMISSIONS 7023. SEGMENT INFORMATION 70

40

Certification of Financial StatementsFOR THE FINANCIAL YEAR ENDED 30 JUNE 2012

The accompanying annual financial statements have been prepared pursuant to the provisions of theNorthern Territory Treasury Corporation Act and other prescribed requirements. We certify that:a. the accompanying financial statements and notes are in agreement with the accounts

and records of the Northern Territory Treasury Corporation; andb. in our opinion:

(i) the prescribed requirements in respect of the establishment and keeping of accounts have been complied with in all material respects; and

(ii) the accompanying annual financial statements have been drawn up in accordance with Australian Accounting Standards, and present a true and fair view of the transactions of the Northern Territory Treasury Corporation for the year ended 30 June 2012 and of the financial position as at 30 June 2012.

At the date of signing, we are not aware of any circumstances which would render the particulars included in the financial statements misleading or inaccurate.

ALAN TREGILGAS ALEX POLLONUnder Treasurer andChair of the Advisory Board

General ManagerNorthern Territory Treasury Corporation

26 September 2012 26 September 2012

41

42

42

43

Statement of Comprehensive IncomeFOR THE FINANCIAL YEAR ENDED 30 JUNE 2012

Note 2012 2011

REVENUEInterest 4Other revenue 5

EXPENSESInterest 6Administration 7

$000

233 453232 980

473

203 527201 1422 385

$000

197 262196 791

471

173 751171 4652 286PROFIT BEFORE INCOME TAX 29 926 23 511

Income tax expense 8 978 7 053

NET PROFIT AFTER INCOME TAX 8 20 948 16 458

TOTAL COMPREHENSIVE INCOME

TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO:Northern Territory Government

20 948

20 948

16 458

16 458TOTAL COMPREHENSIVE INCOME FOR THE YEAR 20 948 16 458

Notes to the financial statements are included on pages 47 to 70.

44

Statement of Financial PositionAS AT 30 JUNE 2012

Note 2012 2011

TOTAL ASSETSCash and cash equivalentsTrade and other receivables 10PrepaymentsLoans 11

TOTAL LIABILITIESDeposits heldTrade and other payables 12Provisions 13Tax liabilities 13Borrowings 14

$0004 098 068

529 072

10 06541

3558 890

4076 438942

51 20521 1018 978

3 994

$0003 113 897

26 5878 507

583 078 745

3 092 267786

40 87816 5877 053

3 026 963NET ASSETS 21 630 21 630

TOTAL EQUITY 21 630 21 630Contributed capital 9 21 630 21 630

Notes to the financial statements are included on pages 47 to 70.

45

Statement of Cash FlowsFOR THE FINANCIAL YEAR ENDED 30 JUNE 2012

Note 2012 2011

CASH FLOWS FROM OPERATING ACTIVITIES 17Interest received from investments Interest and other costs of finance paid Other receipts:Management fee Other feesPayments to suppliers and employees Income tax paid

CASH FLOWS FROM INVESTING ACTIVITIESRepayment of loans Drawdown of loans

CASH FLOWS FROM FINANCING ACTIVITIESRepayment of borrowings Drawdown of borrowings Deposits received

$000inflows

(outflows)

30 416231 297

(191 995)

4712

(2 306)(7 053)

(480 057)44 283(524 340)

952 126(785 910)

$000inflows

(outflows)

16 762194 749

(169 486)

471-

(2 199) (6 773)

(392 392)14 185(406 577)

188 191NET (DECREASE)/INCREASE IN CASH HELD 502 485 (187 439)Cash and cash equivalents at the beginning of the financial yearCash and cash equivalents at the end of the financial year

26 587529 072

214 026

26 587

Notes to the financial statements are included on pages 47 to 70.

46

Statement of Changes in EquityAS AT 30 JUNE 2012

Note 2012 2011

CONTRIBUTED CAPITALBalance at the beginning of the financial year Movement for the yearBalance at the end of the financial year 9

RETAINED PROFITSBalance at the beginning of the financial year Net profitDividends provided for Dividends paidBalance at the end of the financial year 8

$000

21 630-

$000

21 630-

21 630 21 630

- 20 948

(20 948)

-

- 16 458

- (16 - -

TOTAL EQUITY 21 630 21 630

Notes to the financial statements are included on pages 47 to 70.

47

Notes to the Financial StatementsFOR THE FINANCIAL YEAR ENDED 30 JUNE 2012

1. LEGAL STATUS, ASSOCIATED GUARANTEES AND ENTITY DOMICILE(a) Determination of Government Business Division StatusThe Treasurer has determined that the Northern Territory Treasury Corporation (the Corporation) is a government business division as defined in section 3(1) of the Financial Management Act. In accordance with section 10(2) of the Financial Management Act, the financial statements of the Corporation have been prepared based on commercial accounting principles and on the basis that they comply with Australian Accounting Standards.(b) Statutory GuaranteeUnder section 20 of the Northern Territory Treasury Corporation Act, all financial obligations incurred or assumed by the Corporation are guaranteed by the Treasurer on behalf of the Northern Territoryof Australia.(c) Reporting EntityNorthern Territory Treasury Corporation is domiciled in Australia. The Corporation’s registered address is 38 Cavenagh Street Darwin NT 0800. The Corporation is designated as a not-for-profit entity and is primarily involved in borrowing and investing on behalf of the Northern Territory Government.

2. SUMMARY OF ACCOUNTING POLICIESStatement of ComplianceThe financial statements are general purpose financial statements that have been prepared in accordance with the Northern Territory Treasury Corporation Act, Australian Accounting Standards as issued by the Australian Accounting Standards Board (AASB) and the requirements of the Financial Management Act, and the Treasurer’s Directions.The financial statements were authorised for issue by the Under Treasurer on 26 September 2012.Basis of PreparationThe financial statements are presented in Australian dollars rounded to the nearest thousand, (unless otherwise indicated), and have been prepared on the basis of historical cost, except for the revaluation of certain non-current assets and financial instruments. Cost is based on the fair values of the consideration given in exchange for assets.The preparation of the financial statements in conformity with AASB requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates.Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised and in any future periods affected.Use of estimates and judgements in preparing these financial statements has been limited. Information about areas of estimation uncertainty and critical judgements in applying accounting policies that have the most significant effect on the amounts recognised in the financial statements is described in note 16.

48

Notes to the Financial StatementsFOR THE FINANCIAL YEAR ENDED 30 JUNE 2012

Note 2 continued

Accounting policies are selected and applied in a manner that ensures the resulting financialinformation satisfies the concepts of relevance and reliability, thereby ensuring that the substance ofthe underlying transactions or other events is reported.The significant policies that have been adopted in the preparation of these financial statements are:(a) Cash and Cash

EquivalentsCash and cash equivalents include cash on hand and demand deposits. Cash equivalents are short-term, highly liquid investments that are readily convertible to known amounts of cash, which are subject to insignificant risk of changes in value and have a maturity of three months or less at date of acquisition. They are measured at face value or the gross value of the outstanding balance.(b) Employee

BenefitsProvision is made for benefits accruing to employees in respect of wages and salaries, and annual leave when it is probable that settlement will be required and they are capable of being measured reliably.Provisions made in respect of employee benefits that are expected to be settled within 12 months are measured at their nominal values using the remuneration rate expected to apply at the time of settlement. Provisions made in respect of employee benefits that are not expected to be settledwithin 12 months are measured at the present value of the estimated future cash outflows to be made by the Corporation in respect of services provided by employees up to the reporting date.The Corporation’s long service leave liabilities are recorded by the Central Holding Authority (CHA). This is in accordance with the Territory Government’s current policy where all government agencies’ long service leave liabilities are assumed by the CHA.(c) Expense

RecognitionExpense is recognised to the extent that it is probable that an outflow of economic sacrifice will flow from the entity and the expense can be reliably measured. Specific expenses are recognised as follows:

(i) Interest Expense:Interest expense includes accrued interest, loss on extinguishment and amortisation of discount and premiums. Interest expense is recognised on an effective yield basis.(ii) Other Expense:Other expense includes administration charges. Expenses for charges are recognised in the period in which the service is provided on an accrual basis.

(d) Financial Instruments(i) Financial Assets:Financial assets include cash and cash equivalents, trade and other receivables (mainly interest) and loans receivables. Loans and receivables are recorded initially at fair value, net of transaction costs. Subsequent to initial recognition, such financial assets are measuredat amortised cost using the effective interest method (less impairment) with any difference between the initial recognised amount and the amortised cost (less impairment) amount being recognised in the Statement of Comprehensive Income over the period of the financial asset.

49

Notes to the Financial StatementsFOR THE FINANCIAL YEAR ENDED 30 JUNE 2012

Note 2 continued

(ii) Financial Liabilities:Financial liabilities include deposits held, trade and other payables and borrowings. Financial liabilities are recorded initially at fair value, net of transaction costs. Subsequent to initial recognition, financial liabilities are measured at amortised cost with any difference between the initial recognised amount and the redemption amount being recognised in the Statement of Comprehensive Income over the period of the financial liability using the effective interest method.(iii) Effective Interest Method:The effective interest method is a method of calculating the amortised cost of a financial asset or liability and of allocating interest income or expense over the relevant period. The effective interest rate is the rate that exactly discounts the estimated future cash receipts or payments (including all fees on points paid or received that form an integral part of the effective interest rate, transaction costs and other premiums or discounts) through the expected life ofthe financial assets or liabilities, or, where appropriate, a shorter period. Interest income and expense is recognised on an effective interest rate basis for debt instruments.(iv)Financial Instruments Issued by the Corporation:Debt and equity instruments are classified as either liabilities or as equity in accordance with the substance of the contractual agreement. All the Corporation’s compounding products are debt instruments.(v) Impairment of Financial Assets:Financial assets are reviewed at each reporting date to determine whether there is objective evidence of impairment. A financial asset or group of financial assets is impaired and impairment losses are incurred if there is objective evidence of impairment, resulting from one or more loss events that occurred after initial recognition which indicates that it is probable the Corporation will be unable to collect all amounts due. The carrying amount of a financial asset identified as impaired is reduced to its estimated recoverable amount.(vi)Gains and Losses on Extinguishment:Gains and losses on extinguishment occur when a loan or a borrowing is redeemed prior to the scheduled maturity date. A gain or loss is derived where the fair value at redemption is higher or lower than the value of the instrument at amortised cost. These gains and losses are recognised in the period in which the instrument is extinguished.(vii) Derecognition:Financial assets are derecognised when the right to receive cash flows from the financial assets has expired or been transferred. Financial liabilities are derecognised when the obligation under the liability is discharged, cancelled or expired.

50

Notes to the Financial StatementsFOR THE FINANCIAL YEAR ENDED 30 JUNE 2012

Note 2 continued(e) Goods and Services TaxRevenues, expenses and assets are recognised net of the amount of goods and services tax (GST), except:

(i) where the amount of GST incurred is not recoverable from the taxation authority, it is recognised as part of the cost of the acquisition of an asset or as part of an item of expense; or

(ii) for receivables and payables that are recognised inclusive of GST.The net amount of GST recoverable from, or payable to, the taxation authority is included as part of receivables or payables.Cash flows are included in the Statement of Cash Flows on a gross basis. The GST component of cash flows arising from investing and financing activities that is recoverable from, or payable to, the taxation authority is classified as operating cash flows.(f) Operating LeasesOperating lease payments are recognised as an expense on a straight-line basis over the lease term, except where another systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.(g) ProvisionsProvisions are recognised when the Corporation has a present obligation, the future sacrifice of economic benefits is probable and the amount of the provision can be measured reliably. The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at reporting date, taking into account the risks and uncertainties surrounding the obligation. Where a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows.When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, the receivable is recognised as an asset if it is virtually certain that recovery will be received and the amount of the receivable can be measured reliably.(h) Revenue RecognitionRevenue is recognised to the extent that it is probable that the economic benefits will flow to the entity and the revenue can be reliably measured. Specific revenues are recognised as follows:

(i) Interest Revenue:Interest revenue includes accrued revenue and gain on extinguishment. Interest revenue is accrued on a time basis, by reference to the principal outstanding and at the effective interest rate applicable, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to that asset’s net carrying amount.(ii) Other Revenue:Other revenue includes fees and commissions for services provided. Revenue for fees and commissions are recognised in the period in which the service is provided on an accrual basis.

51

Notes to the Financial StatementsFOR THE FINANCIAL YEAR ENDED 30 JUNE 2012

Note 2 continued

(i) SuperannuationEmployee superannuation entitlements are provided through the:• Northern Territory Government and Public Authorities Superannuation Scheme

(NTGPASS);• Northern Territory Supplementary Superannuation Scheme (NTSSS); and• employee nominated non-government schemes for those employees commencing

on or after 10 August 1999.The Corporation makes superannuation contributions on behalf of its employees. Any liability for superannuation is met directly by the Northern Territory Government, and the Corporation has and will continue to have no other direct superannuation liability.(j) TaxationIn accordance with the requirements of the Treasurer’s Directions and the Northern Territory Tax Equivalents Regime, the Corporation is required to pay notional income tax on its accounting profits at the company tax rate of 30 per cent. Current tax for current and prior periods is recognised as a liability to the extent that it is unpaid.

3. NEW STANDARDS AND INTERPRETATIONS NOT YET ADOPTEDA number of new standards, amendments to standards and interpretations are effective for annual periods beginning after 1 July 2011, and have not been applied in preparing these financial statements. None of these is expected to have a significant effect on the financial statementsof the Corporation, except for AASB 9 Financial Instruments, which becomes mandatory forthe Corporation’s financial statements for the year ending 30 June 20141 and could change theclassification and measurement of financial assets. The Corporation does not plan to adopt thisstandard early.(a) Standards and Interpretations Adopted During the Year Ended 30 June 2012The table below summarises the standards and interpretations that have become applicable during the year ended 30 June 2012 and have been adopted by the Corporation.

AASBs and Interpretations

Applicable from

Reporting Period Date

AASB 124 Related Party Disclosures 1 January 2011AASB 132 Financial Instruments: Presentation 1 July 2011AASB 139 Financial Instruments: Recognition and Measurement 1 July 2011AASB 1031 Materiality 1 January 2011AASB 2009-12 Amendments to Australian Accounting Standards 1 January 2011AASB 2010-6 Amendments to Australian Accounting Standards –

Disclosures on Transfer of Financial AssetsAASB 2010-4 Further Amendments to Australian Accounting Standards

arising from the Annual Improvement Project

1 July 2011

1 January 2011

AASB 1054 Australian Additional Disclosures 1 July 2011

52

1 The International Accounting Standards Board has deferred the application of IFRS 9 until 1 January 2015, however the AASB has yet to issue a corresponding amendment to AASB 9.

53

Notes to the Financial StatementsFOR THE FINANCIAL YEAR ENDED 30 JUNE 2012

Note 3 continued(b) Standards and Interpretations on Issue but not yet AdoptedThe table below summarises the standards and interpretations that have already been issued but are not applicable until a later date. However, some standards and interpretations are available for voluntary early adoption. The Corporation has not opted to adopt any standards and interpretations early. The list below primarily includes those standards and interpretations that are of relevance to the Corporation.

AASBs and InterpretationsThe items below are mandatory for years ending on or after 30 June 2014:

Applicable from

Reporting Period Date

AASB 1053 Application of Tiers of Australian Accounting Standards 1 July 2013AASB 2010-2 Amendments to Australian Accounting Standards

arising from Reduced Discloser RequirementsThe items below are mandatory for years ending on or after 31 December 2013:AASB 9 Financial Instruments (December 2010) (includes financial assets and

financial liability requirements)1

AASB 2010-7 Amendments to Australian Accounting Standards arising from AASB 9 (December 2010)1

1 July 2013

1 January 2015 1

January 2013

AASB 9 Financial Instruments (December 2009) (Financial asset requirements only)1 1 January 2013AASB 2009-11 Amendments to Australian Accounting Standards arising from AASB 91 1 January 2013AASB 119 Employee Benefits (September 2011) 1 January 2013AASB 2011-10 Amendments to Australian Accounting Standards arising from

AASB 119 (September 2011)The item below is mandatory for years ending on or after 30 June 2013:AASB 2011-9 Amendments to Australian Accounting Standards – Presentation

of Items of Other Comprehensive Income

1 January 2013

1 July 2012

1 The International Accounting Standards Board has deferred the application of IFRS 9 until 1 January 2015, however the AASB has yet to issue a corresponding amendment to AASB 9.

54

Notes to the Financial StatementsFOR THE FINANCIAL YEAR ENDED 30 JUNE 2012

4. INTEREST REVENUE2012 2011

Interest from:General government agencies Government owned corporation Government business divisions Local government authorities Gain on

$000

144 828

74 88813 104

27133

$000

123 194

62 67210 518

29378

TOTAL INTEREST REVENUE 232 980 196 791

2012 2012 2011 2011

Loans to:General government agencies1

Government owned corporation Government business divisions Local

Average Balance

Average Rate Average Balance Average Rate$000

1 951 669

1 140 204226

% $000 %

6.74 1 684 686 6.936.57 993 481 6.315.78 203 965 5.167.01 416 7.01

TOTAL 3 318 818 2 882 548

2012 2011

Gains on extinguishment:Gains on extinguishment of loans at amortised costsGains on extinguishment of borrowings at amortised costs

$000

90

43

$000

- 378

TOTAL GAINS ON EXTINGUISHMENT 133 378

5. OTHER REVENUE2012 2011

Other revenue Management fees Other revenue

$000

4712

$000

471-

TOTAL OTHER REVENUE 473 4711 The average rate has been calculated by excluding the interest income earned from cash balances. The comparative for 2011 has been re-presented to conform to the current year’s presentation.

55

Notes to the Financial StatementsFOR THE FINANCIAL YEAR ENDED 30 JUNE 2012

6. INTEREST EXPENSE2012 2011

Interest to:Wholesale borrowingsDebt to Australian Government Retail borrowingsPromissory notesLosses on extinguishment

$000

177 608

11 8537 4104 231

40

$000

145 706

12 1108 1774 1441 328

TOTAL INTEREST EXPENSE 201 142 171 465

2012 2012 2011 2011

Borrowings from: Wholesale market

Fixed interest securities Promissory notes

Debt to Australian

Average Balance

Average Rate Average Balance Average Rate$000

3 079 94094 520251 506

% $000 %

5.76 2 496 773 5.844.54 85 616 4.874.71 257 044 4.725.72 145 800 5.60

3 555 462 2 985 233

2012 2011

Losses on extinguishment:Losses on extinguishment of loans at amortised costsLosses on extinguishment of borrowings at amortised costs

$000

2

38

$000

- 1 328

TOTAL LOSSES ON EXTINGUISHMENT 40 1 328

56

Notes to the Financial StatementsFOR THE FINANCIAL YEAR ENDED 30 JUNE 2012

7. OTHER EXPENSES2012 2011

AdministrationSalaries and related employee expenses Agent service arrangementsOther service arrangements ConsultantsMarketing and promotion Document production Legal feesGeneral property management SubscriptionsTraining and

$000

894768505

91

61-

59 64 12 516

$000

834743495

618357

57491841

19

TOTAL OTHER EXPENSES 2 385 2 286

8. RETAINED PROFITS2012 2011

Balance at the beginning of the financial year Net profitDividends provided for Dividends paid

$000-

20 948 (20

948)-

$000-

16 458

- (16 Balance at the end of the financial year - -

9. CONTRIBUTED CAPITAL2012 2011

Balance at the beginning of the financial year Movement for the year

$00021 630

-

$00021 630

-Balance at the end of the financial year 21 630 21 630

57

Notes to the Financial StatementsFOR THE FINANCIAL YEAR ENDED 30 JUNE 2012

10. TRADE AND OTHER RECEIVABLES2012 2011

Accrued interest on loans Debtors

$00010 058

7

$0008 507

-TOTAL TRADE AND OTHER RECEIVABLES 10 065 8 507Due from external bodiesDue from Northern Territory Government agencies

710 058

-8 507

TOTAL TRADE AND OTHER RECEIVABLES 10 065 8 507

11. LOANS2012 2011

General government agencies Fixed rate loansCredit foncier loans

Government owned corporations

Fixed rate loans Floating rate loans Credit foncier loans

Government business divisions Fixed rate loansFloating rate

$000

1 925 200188 636

77 0001 111 8059 124

25 00051 881169 883

$000

1 598 200191 301

77 000994 465

11 013

- 28 381

177 986TOTAL LOANS 3 558 890 3 078 745

12. TRADE AND OTHER PAYABLES2012 2011

Creditors and accrualsAccrued interest on borrowings Accrued salaries

$000282

50 90419

$000241

40 62215

TOTAL TRADE AND OTHER PAYABLES 51 205 40 878Due to external bodiesDue to Northern Territory Government agencies

51 13570

40 86414

TOTAL TRADE AND OTHER PAYABLES 51 205 40 878

58

Notes to the Financial StatementsFOR THE FINANCIAL YEAR ENDED 30 JUNE 2012

13. PROVISIONS AND TAX LIABILITIES2012 2011

a) ProvisionsEmployee benefits

Recreation leave

Opening balance Recreation leave paid Recreation leave provided for Closing balance

Leave bonusOpening balance Leave bonus paidLeave bonus provided for Closing balance

Leave airfaresOpening balance Leave airfares paidLeave airfares provided for Closing balance

Purchased leave Opening balance Purchased leave paidPurchased leave provided for Closing balance

Superannuation external Opening balance Superannuation paid Superannuation provided forClosing balance

$000

105 (75)

90

$000

89 (82)

98120 105

6 (7) 10

10 (12)

89 6

4 (6)

6

2-2

4 4

1 (2)

1

1 (2)

2- 1

13 (13)

20

13 (13)

1320 13

153 129

20 948 16 458

TOTAL PROVISIONS 21 101 16 587

b) Tax liabilitiesNotional income tax payable 8 978 7 053

TOTAL TAX LIABILITIES 8 978 7 053

59

Notes to the Financial StatementsFOR THE FINANCIAL YEAR ENDED 30 JUNE 2012

14. BORROWINGS2012 2011

Wholesale marketFixed interest securities Promissory notes

Retail market Territory Bonds Migration Linked Bonds

Australian Government

$000

3 574 85449 759

118 4252 500

248

$000

2 585 02649 531

135 5682 500

254 TOTAL BORROWINGS 3 994 212 3 026 963

15. FINANCIAL INSTRUMENTS AND RISK MANAGEMENTObjectives and PoliciesThe Corporation’s objectives in managing financial risks such as market risk (interest rate risk and foreign exchange risk), credit risk, liquidity risk and funding risk are to:• safeguard financial resources by establishing and regularly reviewing counterparty

credit limits, maintaining adequate internal controls and staffing;• minimise borrowing costs via effective control and management of interest rate risk

and maintain interest rate risk at an acceptable level;• ensure there is sufficient short and long-term liquidity to meet debts as and when

they fall due;• minimise the cost of foreign currency requirements through the effective

control and management of its foreign exchange risk and neutralise foreign exchange exposures; and

• review and evaluate the risk management policies and procedures on an annual basis to ensure they remain adequate for the Corporation to operate in a risk-neutral manner.

These objectives and policies are endorsed by the Corporation’s Advisory Board and the Under Treasurer.Management of CapitalThe Corporation is not subject to any legislative requirement to maintain a minimum level of equity, however the Corporation’s Advisory Board reviews and recommends an appropriate balance between debt and equity funding. The current level of contributed equity is deemed appropriate for the inherent risks in the Corporation’s business.

60

Notes to the Financial StatementsFOR THE FINANCIAL YEAR ENDED 30 JUNE 2012

Note 15 continued

Categories of Financial InstrumentsThe carrying amount of financial instruments by category is as follows:

30 June 2012 30 June 2011

Financial assets:Cash and cash equivalentsLoans and receivables at amortised

cost: Trade and other receivablesLoans

Total loans and receivables at amortised costFinancial liabilities:Financial liabilities at amortised

cost: Deposits heldTrade and other payables Borrowings

Total financial liabilities at amortised cost

$000

529 072

10 0653 558 890

$000

26 587

8 5073 078 745

3 568 955

94251 205

3 994 212

3 087 252

78640 878

3 026 963

4 046 359 3 068 627

Market RiskThe Corporation adopts a policy of a risk-neutral operation. Risk-neutral means the Corporation will generally manage interest rate and foreign exchange risk, firstly, by matching assets and liabilities where possible, and then by utilising a variety of derivative financial instruments to manage any residual exposures.In the normal course of business, the Corporation may utilise the following derivative instruments:• interest rate swaps to mitigate the risk of rising interest rates; and• cross currency swaps to manage the foreign currency risk associated with

foreign currency denominated borrowings.The Corporation does not enter into or trade in derivative financial instruments for speculative purposes.Market risk is reported at each meeting of the Advisory Board. To the extent that there are mismatches between assets and liabilities, the sensitivity to interest rate risk is measured by aparallel shift in the current market yield curve of 1 per cent. There is currently no exposure to foreign exchange risk, therefore, no sensitivity analysis is undertaken. However, should the Corporation borrow in foreign currency in the future, the sensitivity to foreign exchange risk can similarly be measured by shifting spot exchange rates by an appropriate margin.Market risks are discussed in more detail below.(a) Interest Rate RiskInterest rate risk is the risk of financial loss and/or increased costs due to adverse movements in the values of financial assets and liabilities as a result of changes in interest rates. The Corporation’s

61

Notes to the Financial StatementsFOR THE FINANCIAL YEAR ENDED 30 JUNE 2012

Note 15 continued

interest rate risk arises from cash flow mismatches in the maturity profiles and repricing dates of itsfinancial assets and liabilities.The Corporation aims to manage the interest rate exposure on its financial assets and liabilities at an acceptable level in an attempt to minimise the cost of its borrowing requirements within stated guidelines.The Corporation’s interest rate risk on its financial assets and liabilities is significantly extinguished as a result of its relationship with the CHA. As at 30 June 2012, approximately 54 per cent(2011: 64 per cent) of the Corporation’s issued debt is on-lent to CHA. The interest rates and maturity dates set on these loans are closely matched to the debt issued by the Corporation to external counterparties. The Corporation’s loans to CHA attract a margin over the cost of servicing the debt.When interest rate swaps are used to manage interest rate risk, those that convert floating rate debt to a fixed rate are designated as cash flow hedges. By using interest rate swaps, the Corporation agrees to exchange the difference between fixed and floating interest rate amounts calculated by reference to agreed notional principal, thereby enabling the Corporation to reduce the risk of rising interest rates now or at a future date.The Corporation enters into interest rate swaps that entitle it to receive interest at floating rates and oblige it to pay interest at fixed rates on the same amount. The interest rate swaps allow the Corporation to raise long-term borrowings at floating rates and effectively swap them into fixed rates.Notional principal amounts represent the contract or face value of the swap. The notional amounts do not represent amounts exchanged by the parties to the contract.

(i) Sensitivity analysisAssuming the financial assets and liabilities at 30 June 2012 were to remain until maturity or settlement without any action by the Corporation to alter the resulting interest rate risk exposure, an immediate and sustained increase of 1 per cent in market interest rates across all maturities would have the following impact on profit before tax for the financial year:

Forecast Effect on Profit Before Tax 2012-13

Forecast Effect on Profit Before Tax 2011-12

Financial assetsCash at bank1

Floating rate loans

Rates Up Rates Down by 1% by 1%

Rates Up Rates Down by 1% by 1%$000 $000

5 290 (5 290)1 076 (1 076)

$000 $000266 (266)213 (213)

NET SENSITIVITY 6 366 (6 366) 479 (479)1 The high level of sensitivity is primarily due to $490 million pre-funding relating to the 2012-13 borrowing program, which is to be extinguished by 30 September 2012. If the sensitivity was applied to the 30 June 2012 cash balance exclusive of the $490 million pre-funding the amount would be $0.391 million.

62

Notes to the Financial StatementsFOR THE FINANCIAL YEAR ENDED 30 JUNE 2012

Note 15 continued

Interest Rate Risk ExposuresThe Corporation’s exposure to interest rate risk, re-pricing maturities and the effective interest rates on financial instruments at 30 June 2012 is:

(ii) Re-pricing Maturities

WeightedInterest Rate Reset Due

In More

Non-

AverageInt. Rate

0 to 3

Months

3 Months to

1 Year

1 to 5Years

than5 Years

Interest-Bearing Total

Financial assets% $000 $000 $000 $000 $000 $000

ash 3.25 529 072 - - - - 529 072Trade and other receivables - - - - 10 065 10 065Loans

Fixed rate loans 6.30 300 000 35 000 1 482 900 209 300 - 2 027 200Floating rate loans 6.62 91 649 51 537 1 020 500 - - 1 163 686Credit foncier loans 8.85 - 23 527 9 125 335 352 - 368 004

TOTAL FINANCIAL ASSETS 920 721 110 064 2 512 525 544 652 10 065 4 098 027

Financial liabilitiesDeposits held - - - - - 942 942Trade and other payables - - - - - 51 205 51 205Borrowings

Domestic marketFixed interest securities 5.70 299 837 61 323 2 038 694 1 295 925 - 3 695 779Promissory notes 3.41 49 759 - - - - 49 759

Australian GovernmentCredit foncier loans 4.66 - - - 248 674 - 248 674

TOTAL FINANCIAL LIABILITIES 349 596 61 323 2 038 694 1 544 599 52 147 4 046 359

Financial assetsCashTrade and other receivables Loans

Fixed rate loans Floating rate loans Credit foncier loans

Weighted Average

0 to 3Months

3 Months to 1 Year

1 to 5Years

More than

5 Years

Non- Interest-- Bearin

Total

% $000 $000 $000 $000 $000 $000

4.50 26 587 - - - - 26 587

- - - - 8 507 8 507

6.33 - 325 000 1 115 900

234 300 - 1 675 200

6.81 4 000 36 068 982 778 - - 1 022 8468.79 - - 35 857 344 842 - 380

69930 587 361 068 2 134 535 579 142 8 507 3 113 839

Financial liabilitiesDeposits held - - - - - 786 786Trade and other payablesBorrowings

- - - - - 40 878 40 878

Fixed interest securities

6.12 1 001 377 344 1 854 349

490 399 - 2 723 093

Promissory notes 4.95 49 531 - - - - 49 531

Credit foncier loans 4.66 - - - 254 339 - 254 339

TOTAL FINANCIAL LIABILITIES 50 532 377 344 1 854 349 744 738 41 664 3 068 627

63

Notes to the Financial StatementsFOR THE FINANCIAL YEAR ENDED 30 JUNE 2012

Note 15 continued

For comparative purposes, the Corporation’s exposure to interest rate risk, re-pricing maturities andthe effective interest rates on financial instruments at 30 June 2011 was as follows:

Interest Rate Reset Due In

Domestic market

Australian Government

(b) Foreign Exchange RiskForeign exchange risk is the risk of financial loss due to adverse movements in foreign exchange rates. The Corporation’s assets are denominated solely in Australian dollars, therefore exposure to foreign exchange risk arises only if and when borrowings are denominated in foreign currencies. The Corporation does not currently issue any foreign currency debt, however should it do so in the future, foreign exchange exposures will be neutralised using cross-currency interest rate swaps.(c) Credit RiskCredit risk is the risk of financial loss and/or increased costs due to the failure of a counterpartyto meet its financial obligations. The Corporation’s exposure to credit risk arises out of lending andderivative transactions. This risk is mitigated by the fact that lending activities are limited to NorthernTerritory Government entities and its wholly-owned corporations and that derivative transactions may

64

only be entered into with counterparties rated A- or better by Standard & Poor’s rating group.

65

Notes to the Financial StatementsFOR THE FINANCIAL YEAR ENDED 30 JUNE 2012

Note 15 continued

The Corporation aims to ensure that its exposures to individual and group counterparties are withinacceptable levels and to minimise the likelihood that a counterparty will fail to execute its financialobligations.The Corporation’s dealings in physical securities and/or derivative financial instruments are transacted only with counterparties possessing strong or extremely strong credit rating criteria as determined by Standard & Poor’s rating group. In addition, derivative financial instruments are only transacted with counterparties that have signed an International Swaps and Derivatives Association (ISDA) Master Agreement.The credit risk arising from funds advanced to loan counterparties is considered minimal, as loans are only advanced to counterparties within the Northern Territory Public Sector, as directed by the Treasurer of the Northern Territory. Accordingly, ultimate responsibility for loans advanced by the Corporation lies with the Northern Territory Government. The Standard & Poor’s credit rating criteria are not applied to loan counterparties.In the case of recognised financial assets, the carrying amount of the assets recorded in the Statement of Financial Position represents the Corporation’s maximum exposure to credit risk.(d) Liquidity RiskLiquidity risk is the risk of financial loss and/or increased costs due to unanticipated events or errors in cash flow forecasts that result in additional borrowing costs, reduced investment income, or an inability to meet financial or operational commitments as they fall due. The Corporation’s exposure to liquidity risk may arise due to inadequate or inaccurate communication of actual cash flows and the need to fund unanticipated operating cash requirements when an insufficient cash balance forces the Corporation to liquidate investments and/or utilise backup funding facilities at higher costs.The Corporation seeks to ensure that adequate cash reserves and/or funding sources are available at all times to meet its short-term commitments as they arise.The Corporation’s approach in minimising liquidity risk involves diversification of physical borrowing and investment activities across the maturity spectrum and utilising a variety of funding sources to meet the Corporation’s requirements.In addition, the Corporation at all times maintains:• minimum cash balances;• a committed overdraft facility;• an uncommitted short-term borrowing program via the Corporation’s promissory note

facility;• a diverse list of counterparties; and• its borrowing exposures in a manner that avoids undue reliance on any one

counterparty.

66

Notes to the Financial StatementsFOR THE FINANCIAL YEAR ENDED 30 JUNE 2012

Note 15 continued

(e) Funding RiskFunding risk refers to the medium to long-term risk that the Corporation may be unable to raise funds when required or at a cost that is substantially higher than could be achieved under normal market conditions. Funding risk typically relates to periods greater than one year, whereas liquidity riskrelates to periods less than one year. The objective of funding risk management is to ensure that the Corporation is not exposed to a significant refinancing risk in any financial year.The Corporation’s approach to minimising funding risk involves diversification of physical borrowing and investment activities across the maturity spectrum and utilising a variety of funding sources to meet the Corporation’s requirements.The Corporation has limited funding risk, as the Northern Territory Government supports the financial viability of the Corporation under section 20 of the Northern Territory Treasury Corporation Act.Such a Government guarantee is believed to be sufficient to allow the Corporation to issue debt at competitive rates under normal market conditions.The Corporation’s current funding sources are as

follows: Wholesale marketFixed interest securities Floating rate notes Promissory notes

Retail market Territory Bonds Migration Linked Bonds

Wholesale market issues account for approximately $3.63 billion (2011: $2.59 billion) or 97 per cent (2011: 93 per cent) of all outstanding issued debt as at 30 June 2012 and generally, there has been a strong support by these investors for reinvesting with the Corporation at maturity. Borrowing from the retail market is primarily sourced via the Territory Bonds program. As at 30 June 2012, $118.4 million (2011: $135.6 million) of Territory Bonds were issued and spread across a large number of investors, approximately 7030 (2011: 8300) at an average face value of $16 846 (2011: $16 308).The Corporation constantly monitors credit markets and maintains key investor relationships to ensure there is sufficient diversification of available funding sources.

67

Notes to the Financial StatementsFOR THE FINANCIAL YEAR ENDED 30 JUNE 2012

Note 15 continued

Maturity AnalysisThe following tables detail the maturity analysis of the Corporation’s financial instruments including deposits held, loans and borrowings. The maturity analysis for loans is based on expected timingof receipts. The maturity analysis for domestic borrowings is based on the earliest possible date on which the Corporation can be required to pay. The tables have been drawn up based on undiscounted cash flows, and hence include both interest and principal cash flows. Whenthe amount payable is not fixed, the amount disclosed has been determined by reference to the projected cash flows as illustrated by the yield curves existing at balance date.

30 June 2012 At Call0 to 3

Months3 Months

to 1 Year

1 to 5Years

More than 5 Years

Total

$000 $000 $000 $000 $000LOANSGeneral government agencies

Fixed rate loans 330 535

105 451 1 556 638

326 997

2 319 621Credit foncier loans 6 19 593 103 357 487

Government owned corporationFixed rate loans 1

2723 767 84

660- 89

699Floating rate loans 19 666

54 553 331 679

1 276 605

1 682 503Credit foncier loans 661 1 983 7

933- 10

577Government business divisionsFixed rate loans 407 6 054 22 656 - 29 117Floating rate loans 742 2 193 50

56017 190

70 685Credit foncier loans 5 094 12 065 68

635166 231

252 025Local government authorities

Credit foncier loans 16 48 259 135 458TOTAL LOANS 364 689 205 707 2 226 508 2 144 811 4 941 715

Deposits held 942 - - - - 942BorrowingsDue to other financial institutions

Wholesale marketFixed interest securities - 394 834 177 2 453 1 510 4 536

Retail marketTerritory Bonds - 261 41 435 92

845- 134

541Migration Linked Bonds - 48 831 1 - 2 Australian Government

Credit foncier loans - - 17 511 69 975

352 257

439 743TOTAL BORROWINGS 942 395 143 237 601 2 617 737 1 862 821 5 114 244

68

Notes to the Financial StatementsFOR THE FINANCIAL YEAR ENDED 30 JUNE 2012

Note 15 continued

30 June 2011 At Call

0 to 3

Months

3 Months to

1 Year

1 to 5Years

More than5 Years Total

LOANSGeneral government agencies

$000 $000 $000 $000 $000

Fixed rate loans 25 451 388 850 1 198 110 351 477 1 963 888Credit foncier loans 6 296 19 600 103 516 383 515 512 927

Government owned corporationFixed rate loans 1 261 3 781 73 951 15 747 94 740Floating rate loans 17 114 50 835 321 577 1 167 021 1 556 547Credit foncier loans 661 1 983 10 577 - 13 221

Government business divisionsFloating rate loans 469 4 399 16 657 22 982 44 507Credit foncier loans 5 094 12 065 68 635 183 390 269 184

Local government authoritiesCredit foncier loans 17 48 259 199 523

TOTAL LOANS 56 363 481 561 1 793 282 2 124 331 4 455 537

Deposits held 786 - - - - 786BorrowingsDue to other financial

institutions Wholesale market

Fixed interest securities - 79 715 446 168 2 131 084 620 605 3 277 572

Retail market

Territory Bonds - 998 58 113 89 151 6 707 154 969Migration Linked Bonds - 48 81 2 779 - 2 908

Australian GovernmentCredit foncier loans - - 17 518 70 002 369 741 457 261

TOTAL BORROWINGS 786 80 761 521 880 2 293 016 997 053 3 893 496

69

Notes to the Financial StatementsFOR THE FINANCIAL YEAR ENDED 30 JUNE 2012

16. FAIR VALUES OF FINANCIAL INSTRUMENTSAASB 7, paragraph 25 requires the Corporation to provide fair value information through supplementary disclosures for any financial assets or financial liabilities that are not measured at fair value in its Statement of Financial Position.Fair values of financial instruments are determined on the following basis:• the fair value of cash and non-interest bearing monetary financial assets

and liabilities approximate their carrying value, which is defined as their amortised cost;

• the fair value of other monetary financial assets and liabilities is based on discounting the expected future cash flows by applying current market interest rates for assets and liabilities with similar risk profiles. Current market interest rates are determined with reference to the Australian Financial Markets Association swap reference rates plus a margin. The market rates are then used to discount the expected future cash flows arising from the financial assets and liabilities to their present value. The margins applied to the current market interest rates on the Corporation’s loans and domestic borrowings take into account credit quality and liquidity considerations; and

• the fair value of derivative financial instruments are derived using current market yields and exchange rates appropriate to the instrument.

The fair values represent the Corporation’s best estimate of the replacement cost of the financial transactions undertaken by the entity. The Corporation concedes that in its estimation of fair value there is an element of subjectivity involved in the calculations, given that the Corporation’s financial assets and liabilities are not readily priced and are not frequently traded in the financial markets.The carrying value of all other assets and liabilities not recorded at fair value approximates fair value.

70

Notes to the Financial StatementsFOR THE FINANCIAL YEAR ENDED 30 JUNE 2012

Note 16 continued

The fair value of loans and domestic borrowings not recorded at fair value is as follows:

FAIR VALUES30 June 2012 30 June 2012Carrying Value Fair Value

30 June 2011 30 June 2011Carrying Value Fair Value

Financial assets – loans Northern Territory of Australia

Fixed rate loansFloating rate loans

Credit foncier loans

Local government authorities Credit foncier

$000 $000

2 027 200 2 180 045

1 163 686 1 214 207

367 643 463 797

$000 $000

1 675 200 1 719 314

1 022 846 1 038 213

380 300 440 607

TOTAL LOANS 3 558 890 3 858 432 3 078 745 3 198 539

Financial liabilities – borrowings Wholesale market

Fixed interest securities Promissory notes

Retail market Territory Bonds Migration Linked Bonds

Australian

3 574 854 3 854 628

49 759 49 751

118 425 124 3032 500 2 614

248 674 258 362

2 585 026 2 685 749

49 531 49 533

135 567 137 8992 500 2 534

254 339 224 397TOTAL BORROWINGS 3 994 212 4 289 658 3 026 963 3 100 112

71

Notes to the Financial StatementsFOR THE FINANCIAL YEAR ENDED 30 JUNE 2012

17. RECONCILIATION OF NET PROFIT TO NET CASH FLOWS FROM OPERATING ACTIVITIES2012 2011

Net profit

Reconciliation flows in net profitAdd (gain)/loss on extinguishmentLess (premium) and discount amortisation Add unrealised interest expense

Changes in assets and liabilitiesLess decrease/(increase) in interest receivable Less decrease/(increase) in debtorsAdd decrease/(increase) in prepaymentsAdd increase/(decrease) in employee benefits Add increase/(decrease) in trade creditors

$00020 948

(93) (1

176)-

(1 551)

(7) 17 24 45

$00016 458

949 (193)

15

(1 664)12431219

281830

NET CASH INFLOW FROM OPERATING ACTIVITIES 30 416 16 762

18. AUDITOR’S REMUNERATIONExternal audit services are provided by the Auditor-General for the Northern Territory. The Auditor-General’s Office has advised that the estimated cost of this service for 2011-12 is $60 088 (2011: $57 100).

19. FIDUCIARY ACTIVITIESThe Corporation acts as manager for the Investments Portfolio of the Central Holding Authority and the Northern Territory Government Conditions of Service Reserve. Any associated assets and liabilities are not recognisedin these financial statements. As at 30 June 2012, the size of the investment portfolio was $655 million(2011: $452 million) and the Northern Territory Government Conditions of Service Reserve was approximately$435 million (2011: $436 million). Management fees generated in carrying out these activities are included in the Statement of Comprehensive Income. The aggregate income from fiduciary activities for the year was:

2012 2011

Management fees$000471

$000471

70 This document was printed on recycled paper.

Notes to the Financial StatementsFOR THE FINANCIAL YEAR ENDED 30 JUNE 2012

20. DIVIDENDSThe Corporation has provided for a dividend of $20 948 million, which is at the rate of 100 per cent of its net profit for the 2011-12 year in accordance with the Northern Territory Treasurer’s budget direction.

21. ADVISORY BOARDThe Northern Territory Treasury Corporation Advisory Board was established in October 1994. The Under Treasurer of the Northern Territory Treasury, Mrs Jennifer Prince, was the Chair of the Board, and the following people held the position of member during the year ended 30 June 2012:

Mr Anthony S Cole AO Mercer (Australia) Pty Ltd Mr Richard V Ryan AO Editure LtdMr David Braines-Mead Northern Territory Treasury, Assistant Under Treasurer (Budgets and Finance) Mr John R P Montague Northern Territory Treasury, Assistant Under Treasurer (Funds Management)

During the year ended 30 June 2012 only two members were entitled to receive Advisory Board sitting fees, amounting to $38 522 (2011: $37 400). Members who are permanently employed under the Public Sector Employment and Management Act, or on similar terms, are not entitled to fees.

2012 2011

Sitting fees$000

39$000

37

22. FEES AND COMMISSIONSThe Corporation currently has commission and maintenance arrangements with the following service providers:

2012 2011

Provider:Link Market Services Pty Ltd Sungard Systems Pty Ltd Bloomberg Finance L.P Reuters Pty LtdAustraclear Ltd

$000

38471211756

$000

3787141

- 47

23. SEGMENT INFORMATIONThe Corporation acts predominantly in the finance industry and lends funds and provides financial advice to the Northern Territory Government, its government business divisions and local authorities. The Corporation operates predominantly in one geographical area, being the Northern

71

Territory of Australia.

72 This document was printed on recycled paper.

Executive

Under Treasurer/ChairAssistant Under Treasurer

Funds Management General Manager

Alan Tregilgas(08) 8999 6033

alan.tregil g as@nt.g o v .au

John Montague(08) 8999 7975

john.montague@nt.g o v .au

Alex Pollon(08) 8999 6318

al e x.pollon@nt.g o v .au

Financial Administration

Manager Financial Administration

Senior Budgets and Finance Officer

SeniorAccounting Officer

FinanceOfficer Administration

Vicky Coleman(08) 8999 5599

vi c k y .coleman@nt.g o v .au

Anna Mitchell(08) 8999 6833

anna.mit c hell@nt.g o v .au

Kanchana Perera(08) 8999 7678

kan c hana.perera @nt.g o v .au

Maria Musumeci(08) 8999 5534

maria. m usumeci @nt.g o v .au

Financial Assets and Liabilities

Manager FinancialAssets and Liabilities

SeniorFinance Officer

Senior Investment Officer

Richard Ting(08) 8999 6767

ri c hard.ting@nt.g o v .au

Gloria Lui(08) 8999 7650

gloria.lui@nt.g o v .au

George Dubrava(08) 8999 5596

georg e .dubr a v a@nt.g o v .au

Registry – Link Market Services Limited Free Call 1800 111 441 ww w .linkma r k etse r vice s .com.au

PO Box 3722Rhodes NSW 2138

Email: te r rito r ybonds@linkma r k etse r vice s .com.au

Territory BondsPhone 08 8999 7745Email: te r rito r y .bonds@nt.g o v .au

Websiteww w .nttco r p .nt.g o v .au