Budget 2010: $300m in Aussie Infrastructure Bonds for NBN Co

Federal Agencies to get funding boost to oversee NBN Co's operations

The Federal Government will release $300 million in Aussie Infrastructure Bonds over the coming 12 months to help fund its investment in NBN Co.

As part of the Budget, the Government said the bonds would be issued to both household and institutional investors.

"The component of this funding to be provided by institutional and other wholesale investors will be through the issue of CGS [Commonwealth Government Securities ] as part of the Government's overall debt issuance program," the Budget documents read. "These bonds will not be separately identified from other CGS at the time of issue, but will be reported in the annual budget statements. "Consideration is currently being given to offerings of Aussie Infrastructure Bonds for household investors."

The total amount of CGS expected to be issued by 30 June 2010 is $154 billion with $55 billion forecast to be issued in 2010-11. Several government agencies also received funding for oversight of NBN Co.

$12.9 million will go to the Department of Broadband, Communications and the Digital Economy and $2.1 million to the Department of Finance and Deregulation to help with policy and regulatory measures, contract oversight and management of NBN Co shares.

The Australian Competition and Consumer Commission (ACCC) will get $24 million over five years to set up and administer the NBN’s regulatory arrangements.

And as part of its obligations to audit NBN Co’s financial statements, the Australian National Audit Office (ANAO) will receive an additional $400,000, while also benefiting from an increase in funding from $71.4 million to $72.9 million to up its IT and other specialist capabilities among other things.

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Tags NBNnbn coBudget 2010

More about Australian Competition and Consumer CommissionAustralian Competition and Consumer CommissionAustralian National Audit OfficeAustralian National Audit OfficeCommonwealth GovernmentFederal GovernmentNational Audit Office

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