HOMESTART FINANCE

In reply to Ms CHAPMAN (Bragg—Deputy Leader of the Opposition) (29 June 2009).

The Hon. J.M. RANKINE (Wright—Minister for Families and Communities, Minister for Northern Suburbs, Minister for Housing, Minister for Ageing, Minister for Disability): HomeStart Finance's forecast dividend and tax-equivalent payments are derived from a financial model which takes into account the economic and market environment. A number of factors influence future profits, including forecast interest rates and lending volumes.

The decline in expected dividend and tax-equivalent payments in 2012-13, when compared with 2011-12, partially reflects the interest rate forecasts (sourced from the private sector) used at the time and other market influences which are anticipated to have minimal impact on the profitability of HomeStart Finance.