State Of Queensland Australia 18-K/A Annual report (foreign governments) (amended)

EXHIBIT (c)(v)

Queensland Treasury Corporation Half-Yearly Report
for the Six Months ended December 31, 2005

Exhibit (c)(v)

Half Yearly Report
QUEENSLAND TREASURY CORPORATION

CONTENTS	PAGE
Our vision		2
Our mission		2
Our values		2
Our stakeholder		2
Our customers		2
Our role		3
Five Year Business Summary		4
Chairman’s Report		6
Consolidated Financial Statements		8
Appendix A: Loans to Customers		26
Appendix B: Partners in Financial Markets		33
Appendix C: QTC’s Indicative Borrowing Program for 2006		35
Appendix D: Corporate Directory		36

2005 HALF YEARLY REPORT 1

Our Vision:	Efficient and effective financial risk management practices across our customers and the State.
Our Mission:	To provide corporate treasury services to our customers and the State, by striving to understand our customers’ current and future needs and by delivering solutions to meet those needs.
Our Values:	Open communication, respect for the individual, integrity and honesty in all our dealings, good corporate citizenship, strong commitment and valuable contributions.
Our Stakeholder:	Queensland Treasury Corporation (QTC) was established by the Queensland Treasury Corporation Act 1988, as a Corporation Sole, constituted by the Under Treasurer of Queensland. QTC has delegated its responsibility to the QTC Capital Markets Board.
Our Customers:	QTC provides financial advice and financial risk management services, debt funding, and short- to medium-term investment options to Queensland’s public sector organizations — the State Government, its departments and agencies, statutory authorities and government owned corporations, and local governments and their entities.

2 QUEENSLAND TREASURY CORPORATION

Queensland Treasury Corporation

Our role

QTC is the State’s corporate treasury services provider. Our main responsibilities are to:

• provide financial and risk management advice, produces and services to our customers

• source and manage the debt funding to finance Queensland’s infrastructure requirements in the most cost effective manner, and

• invest the State’s short- to medium-term cash surpluses, maximising returns to our customers through a conservative risk management framework.

We do not formulate Government policy, but work within the policy frameworks developed by the Government and Queensland Treasury.

Financial advisory and risk management services

We work closely with our public sector customers, using our combined skills and knowledge, to assist them to manage risk in their financial transactions and achieve the best financial solutions for their organisations and for Queensland. In assisting our customers, we do not provide advice that is contrary to the interests of the State.

We encourage our customers and Queensland Treasury, our major stakeholder, to use our organisation as an extension of their resources, by:

• providing them with access, on a cost-recovery basis, to professional skills and resources to ensure that their financial risks are identified and managed on a consistent basis

• acting as a central store of knowledge and expertise on financial structures and transactions, and the risks and benefits that they encompass

• providing Queensland Treasury with advice on matters of financial and commercial policy and financial and commercial risk relating to the State and its entities, and

• working as a conduit between the Government and the private sector, using our economies of scale and scope to ensure that the best possible solutions are obtained.

Debt funding and management

In our funding role, we borrow funds in the domestic and international markets in a manner that minimises the State’s and QTC’s liquidity and refinancing risk. We then lend these funds to our customers, or use them to manage our customers’ debt or refinance maturing debt.

Through our responsibility for virtually all of the State’s debt raisings, we are able to capture significant economies of scale and scope in the issuance, management and administration of debt.

These economies, together with our AAA credit rating (derived from the State of Queensland’s guarantee of our securities), result in a low cost of debt for Queensland’s public sector. This funding is used to provide tailored financial solutions for our customers.

Short- to medium-term investments

We use our financial markets expertise, developed through our longstanding relationships in the domestic and international financial markets, together with our understanding of debt management and experience in implementing systems, to provide our customers with investment solutions that achieve a high return within a conservative risk environment. Our customers have a choice of a managed short-term fund, an overnight facility, or fixed-term facilities.

2005 HALF YEARLY REPORT 3

Five Year Business Summary

	Financial Year		Financial Year			Financial Year		Financial Year			Half Year to
	01-02		02-03			03-04		04-05			31 Dec 05
FINANCIAL
Operating Statement ($000)
Interest from onlendings		1 092 077		1 826 847			371 737		1 442 995			443 878
Management fees		21 970		24 318			22 144		22 993			11 273
Interest on borrowings		1 295 279		2 157 121			468 243		1 849 012			612 695
Income distribution		149 264		166 529			239 933		262 307			141 088
Operating surplus before abnormal items and payment in lieu of income tax		42 610		60 098			35 830		57 735			30 660
Payment in lieu of income tax		13 694		13 176			12 553		11 647			6 421
Operating surplus after payment in lieu of income tax		28 916		46 922			23 277		46 088			24 239
Balance Sheet ($000)
Total assets		26 039 139		26 866 311			26 809 429		30 230 084			31 580 451
Total liabilities		25 844 495		26 657 745			26 577 586		29 952 153			31 278 281
Net assets		194 644		208 566			231 843		277 931			302 170
CUSTOMERS
Savings for Customers ($M)
Savings due to portfolio management		17.9		13.6			54.6		(9.1	)		21.9
Savings due to borrowing margin		53.3		56.1			63.1		55.8			34.8
Total savings for customers		71.2		69.7			117.7		46.7			56.7
Cumulative savings for customers		1 111.4		1 181.1			1 298.8		1 345.5			1 402.2
Loans to Customers
Loans ($000)		18 419 899		19 670 526			17 714 737		18 905 621			19 587 156
Number of onlending customers		383		363			308		292			329
Outperformance of benchmark
(% pa semi-annual)
Floating Rate Debt Pool		0.46		0.14			0.18		0.16			0.17
3 Year Debt Pool		0.20		(0.02	)		0.22		(0.02	)		0.27
6 Year Debt Pool		0.04		0.00			0.28		(0.07	)		0.27
9 Year Debt Pool		0.00		0.06			0.28		(0.14	)		0.17
12 Year Debt Pool		0.01		0.07			0.34		(0.13	)		0.22
15 Year Debt Pool		0.02		0.05			0.36		(0.15	)		0.19

4 QUEENSLAND TREASURY CORPORATION

	Financial Year		Financial Year		Financial Year		Financial Year		Half Year to
	01-02		02-03		03-04		04-05		31 Dec 05
CUSTOMERS (continued)
Managed Funds
Deposits ($000)		3 171 913		4 148 083		4 476 280		5 043 054		5 459 276
Number of depositors		215		223		258		270		264
Outperformance of benchmark (% pa semi-annual)
Cash Fund		0.17		0.18		0.18		0.17		0.18
FINANCIAL MARKETS
Debt outstanding ($000)		22 025 716		22 219 443		21 702 155		24 518 115		25 246 796
QTC bond rates (% at 30 June)
August 2001		—		—		—		—		—
May 2003		5.25		—		—		—		—
June 2005		5.81		4.51		5.45		—		—
September 2007		6.03		4.78		5.70		5.31		5.43
July 2009		6.18		4.98		5.87		5.31		5.42
May 2010		—		—		—		5.34		5.43
June 2011		6.29		5.13		5.98		5.35		5.43
August 2013		6.38		5.24		6.07		5.36		5.44
October 2015		6.42		5.30		6.12		5.37		5.44
June 2021		6.47		5.38		6.18		5.40		5.45
Basis point margin over Commonwealth bonds		24.3		16.7		19.3		22.5		25.3
Basis point margin under NSW TCorp bonds		3.3		2.1		3.1		2.5		2.5
QTC global & domestic bonds on issue ($M)		19 148		18 406		20 486		22 186		23 807
CORPORATE
Number of employees		121		129		130		135		117
Administration expenses ($000)		23 716		24 555		28 403		30 021		14 959

2005 HALF YEARLY REPORT 5

In this period of rising interest rates, Queensland Treasury Corporation (QTC) achieved total savings for customers, from portfolio management and borrowing margins, of $56.7 million, bringing cumulative savings since 1991 to $1.4 billion. QTC also performed well, achieving an operating surplus of $24.2 million.

Chairman’s Report

In the six months to December 2005, continued growth in the global economy has been driven by demand-led expansion in the United States (US), and production-led growth in emerging economies, such as China.

The defining characteristic of the current global economy is the world-wide participation in the most synchronised period of growth in the past 25 years, with major countries, including the US, China and Japan, expanding at, or above, their long-term average rates of gross domestic product (GDP) growth. This synchronised lift has raised commodity and, in particular, energy prices, as well as profits. However, this strong economic growth has not yet led to the type of widespread inflation that usually concerns central banks.

Nonetheless, a number of central banks, including those of the US, Canada, New Zealand, and some of the countries of the European Union, have raised their official interest rates as a pre-cautionary measure in the past six months. In this environment of rising official interest rates, domestic market interest rates rose modestly, despite the Reserve Bank of Australia maintaining the official cash rate at 5.50%.

The rise in global long-term market interest rates has been accompanied by a notable rally in both the global equity and commodity markets over the first half of the financial year, with the prices of equities supported by strong corporate profitability, and commodity prices buoyed by robust demand growth against a backdrop of supply constraints. In currency markets, the US dollar performed better than the market had expected given the general consensus that the US Federal Reserve was fast approaching the end of its monetary ‘tightening cycle’.

6 QUEENSLAND TREASURY CORPORATION

Queensland’s economy

The Queensland economy grew at a higher rate compared with the national economy, and continued to be one of the strongest performing states in the country. Queensland is estimated to have recorded growth of 4.2% over the period, almost double national growth of 2.6%, principally driven by business investment and export growth, while growth in consumer spending remained steady. Queensland Treasury forecasts that the State economy will grow by a further 4.25% in 2005-06, exceeding national growth for the tenth consecutive year. The rotation of the drivers of economic growth is expected to continue over the forecast period, with growth in the domestic sector easing and net exports improving significantly.

Total employment in Queensland is estimated to have increased by 2.74% over the year to December, moderating somewhat from earlier highs. For 2005-06, the State’s employment growth is forecast to further moderate to 2¹/2%, reflecting an expected easing in growth in the labour-intensive domestic sector, which will be partly offset by strong employment in trade-related industries, such as mining, manufacturing and transport.

Borrowing requirements

QTC’s Borrowing Program for the 2005-06 financial year included estimates for new raisings for capital works in excess of $3 billion against total State capital expenditure of more than $8 billion. It is expected that funding requirements will be similar in each financial year out to 2008-09. As Queensland’s strong economic outcomes continue to place growing demands on existing infrastructure, the Government’s program of increasing capital expenditure through the South East Queensland Infrastructure Plan will ensure our borrowing requirements will be maintained into the foreseeable future. In the past six months, we have raised more than two-thirds of our expected borrowings for the year, with approximately $1.3 billion having being raised via our global benchmark bond program.

Financial Markets relationships

QTC continues to benefit from its proactive investor relationship program which includes annual visits to major global institutional investors and Asian central banks. In September, Queensland’s Premier and Treasurer, the Hon Peter Beattie, joined QTC and Queensland Treasury department representatives in a comprehensive series of meetings in Hong Kong, China, Japan, Europe, the United Kingdom and North America, which were extremely well received. We also hosted our biennial conference for our Fixed Interest Distribution Group members in October 2005 with several representatives from London, Hong Kong and New York in attendance.

Looking ahead

2006 will be a year of opportunities and challenges for QTC, as we implement the strategies and initiatives that emerged from this period’s comprehensive review of the issues facing our customers, the financial markets and QTC, which were used as inputs in the development of our Strategic Plan for 2005-2007. With the Government’s accelerated infrastructure development plan gaining momentum, our customer financial advisory work will continue to increase. In particular, the LG Infrastructure Services corporation, a joint initiative with the Local Government Association of Queensland, is developing partnerships that are further extending our ability to assist the State’s public sector organisations to best manage their financial risks.

In this exciting period of growth, I am confident that QTC will maintain its overall position as the foremost semi-government issuer of A$ denominated bonds in both the domestic and offshore markets.

Sir Leo Hielscher AC

2005 HALF YEARLY REPORT 7

Consolidated Interim Financial Statements

for the half year ended 31 December 2005

Contents	Page
Interim Income Statement		9
Interim Balance Sheet		10
Interim Statement of Changes in Equity		11
Interim Statement of Cash Flows		12
Notes to and Forming Part of the Financial Statements		13
Certificate of the Queensland Treasury Corporation		24
Independent Review Report		25

8 QUEENSLAND TREASURY CORPORATION

Interim Income Statement
for the half-year ended 31 December 2005

			2005		2004
	Note		$000		$000
REVENUE
Interest income		3		783 613		1 128 806
Fees — management		4		11 273		11 402
— professional				134		154
— other				131		275
Amortisation of cross border lease deferred income				4 381		4 468
Gain on sale of property, plant and equipment				—		69
Other income				—		25
				799 532		1 145 199
EXPENSES
Interest expense		3		753 783		1 105 561
Administration expenses				14 959		15 480
Provisions — cooperative housing societies				80		11
Realised loan losses — cooperative housing societies				—		417
Loss on sale of property, plant and equipment				50		—
				768 872		1 121 469
Operating Surplus before payment in lieu of income tax				30 660		23 730
Payment in lieu of income tax				6 421		6 005
Operating Surplus after payment in lieu of income tax				24 239		17 725

The accompanying notes form part of these financial statements.

2005 HALF YEARLY REPORT 9

Interim Balance Sheet
as at 31 December 2005

			31 December 2005		30 June 2005		31 December 2004
	Note		$000		$000		$000
ASSETS
Cash		5		52		56		805
Receivables				2 167		2 234		33 725
Prepayments				220		271		239
Onlendings		6		19 587 153		18 905 621		18 448 403
Derivative financial assets		7		62 564		75 002		52 065
Financial assets at fair value through profit or loss		8		11 957 563		11 278 643		10 962 481
Property, plant and equipment		9		34 807		39 266		43 888
Deferred income tax asset				1 536		1 238		1 429
Total Assets				31 646 062		30 302 331		29 543 035
LIABILITIES
Payables				191 389		198 543		184 476
Derivative financial liabilities		10		8 320		8 310		17 965
Financial liabilities at fair value through profit or loss		11		31 134 112		29 802 696		29 070 704
Tax liabilities				7 039		11 897		17 372
Provisions				3 003		2 954		2 947
Other				29		—		3
Total liabilities				31 343 892		30 024 400		29 293 467
Net Assets				302 170		277 931		249 568
EQUITY
Reserves		12		70 596		68 906		67 529
Retained surplus				231 574		209 025		182 039
Total Equity				302 170		277 931		249 568

The accompanying notes form part of these financial statements.

10 QUEENSLAND TREASURY CORPORATION

Interim Statement of Changes in Equity
for the half-year ended 31 December 2005

			General		Credit Risk		Basis Risk			Retained			Total
			Reserve		Reserve		Reserve			Surplus			Equity
	Note		$000		$000		$000			$000			$000
Balance at 1 July 2004				39 082		8 857		15 000			168 904			231 843
Operating surplus from continuing operations				—		—		—			17 725			17 725
Transfer from/(to) retained surplus		12		—		5 590		(1 000	)		(4 590	)		—
Balance at 31 December 2004				39 082		14 447		14 000			182 039			249 568
Balance at 1 January 2005				39 082		14 447		14 000			182 039			249 568
Operating surplus from continuing operations				—		—		—			28 363			28 363
Transfer from/(to) retained surplus		12		—		2 377		(1 000	)		(1 377	)		—
Balance at 30 June 2005				39 082		16 824		13 000			209 025			277 931
Balance at 1 July 2005				39 082		16 824		13 000			209 025			277 931
Operating surplus from continuing operations				—		—		—			24 239			24 239
Transfer from/(to) retained surplus		12		—		2 190		(500	)		(1 690	)		—
Balance at 31 December 2005				39 082		19 014		12 500			231 574			302 170

The accompanying notes form part of these financial statements.

2005 HALF YEARLY REPORT 11

Interim Statement of Cash Flows
for the half-year ended 31 December 2005

			2005			2004
	Note		$000			$000
CASH FLOWS FROM OPERATING ACTIVITIES
Interest income       — onlendings				518 351			740 582
Investment income — financial assets				327 737			304 710
— other				4 155			4 872
Fees                       — management				11 343			11 460
— professional				176			138
— other				119			367
GST paid to suppliers				(279	)		(763	)
GST refunds from ATO				314			1 146
GST paid to ATO				(10 087	)		(1 336	)
GST received from customers				939			1 323
Interest on interest-bearing liabilities				(732 608	)		(604 059	)
Income distribution to depositors				(139 470	)		(116 942	)
Administration expenses				(11 396	)		(10 833	)
Net Cash Inflow/ (Outflow) from Operating Activities				(30 706	)		330 665
CASH FLOWS FROM INVESTING ACTIVITIES
Net proceeds from sale of financial assets				(665 244	)		(1 919 717	)
Proceeds from sale of property, plant and equipment				864			394
Net onlendings				(756 088	)		(683 939	)
Payments for property, plant and equipment				(38	)		(65	)
Net Cash Inflow/ (Outflow) from Investing Activities				(1 420 506	)		(2 603 327	)
CASH FLOWS FROM FINANCING ACTIVITIES
Net proceeds from interest-bearing liabilities				855 013			2 167 711
Net deposits				607 763			105 610
Net guarantee fees collected on behalf of Queensland Treasury				9			(22	)
Distribution to Consolidated Fund				(11 577	)		—
Net Cash Inflow/ (Outflow) from Financing Activities				1 451 208			2 273 299
Net Increase/(decrease) in Cash Held				(4	)		637
Cash at 1 July				56			168
Cash at 31 December		5		52			805

The accompanying notes form part of these financial statements.

12 QUEENSLAND TREASURY CORPORATION

Notes to and forming part of the Financial Statements
for the half-year ended 31 December 2005

1. General Information

Queensland Treasury Corporation is constituted under the Queensland Treasury Corporation Act 1988 (the Act), with the Under Treasurer designated as the corporation sole under section 5(2) of the Act. Although there is no statutory requirement for the preparation of half-year financial statements, in order to better meet the needs of users of QTC’s financial information, a general purpose interim financial report has been prepared.

The interim financial report does not include all notes of the type normally included within the annual financial report and, therefore, cannot be expected to provide as full an understanding of the financial performance, financial position and financing and investing activities of the consolidated entity as the full financial report. It should be read in conjunction with the annual financial report of Queensland Treasury Corporation as at 30 June 2005, which was prepared based on Australian Accounting Standards applicable before 1 January 2005 (AGAAP).

2. Principal Accounting Policies

(a) Basis of preparation

These general purpose financial statements for the half-year ended 31 December 2005 have been prepared in accordance with the requirements of the Financial Management Standard 1997 issued pursuant to the Financial Administration and Audit Act 1977, and other mandatory professional reporting requirements. They comply with the Australian equivalents to International Financial Reporting Standards (AeIFRS) and have been prepared in accordance with those International Financial Reporting Standards (IFRS) issued and effective as at the time of preparing these statements.

The adoption of AeIFRS did not require any changes to accounting policies adopted by QTC in the preparation of these general purpose financial statements. However, financial instruments have been reclassified in the financial statements into the following categories (refer note 2 (f)).

PREVIOUS CLASSIFICATION	CLASSIFICATION OF FINANCIAL INSTRUMENTS UNDER AEIFRS
Other financial assets	Financial assets at fair value through profit or loss
	Derivative financial assets
Deposits	Financial liabilities at fair value through profit or loss
Interest bearing liabilities	Financial liabilities at fair value through profit or loss
	Derivative financial liabilities

Where necessary, comparative figures have been adjusted to conform with changes in presentation in the current period.

The consolidated financial statements have been prepared under the historical cost convention, as modified by the revaluation of financial assets and financial liabilities held at fair value through profit or loss and all derivative contracts.

(b) Principles of consolidation

QTC, in preparing these financial statements, does not make the division between parent entity and consolidated entities. This is because QTC is a corporation sole and all transactions are performed through either controlled or associated entities or through delegated power given to the Capital Markets Board. As a consequence, the parent entity concept for financial reporting does not provide additional information.

The accounts comprise the consolidated accounts of QTC, Sunshine Locos Pty Limited, and Sucette Pty Limited.

All internal transactions and any profits/ losses resulting from these transactions together with internal contra transactions are eliminated.

(c) Segment reporting

QTC operates predominantly in the finance and investment industry through liability and fund management activities. Liability management activities relate to the borrowing of funds to finance the capital works programs of the State and the management of these borrowings so as to achieve the lowest cost to borrowers. The fund management activities of QTC relate to the investment of the short term surpluses of these bodies in order to achieve the highest possible return for a given level of risk.

QTC operates in Queensland, Australia.

(d) Foreign currency translation

Foreign currency transactions are initially translated into Australian dollars at the exchange rates ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated at balance date using current exchange rates after taking into account interest rates and accrued interest.

Exchange gains/losses are brought to account in the Income Statement.

(e) Interest income and expense

The recognition of investment income and borrowing costs includes net realised gains/losses from the sale of investments (interest income) and the preredemption of borrowings (interest expense) together with the net unrealised gains/losses arising from holding investments and certain onlendings (interest income) and net unrealised gains/losses from borrowings (interest expense). These unrealised gains/losses are a result of revaluing to market daily.

2005 HALF YEARLY REPORT 13

Notes to and forming part of the Financial Statements
for the half-year ended 31 December 2005 (continued)

2. Principal Accounting Policies (continued)

(e) Interest income and expense (continued)

The majority of onlendings are provided to customers on a pooled fund basis. With the exception of fixed rate loans, interest charged to clients includes unrealised gains and losses (refer note 3).

(f) Financial instruments

Management classifies its financial instruments on initial recognition into the following categories:

• Receivables

• Onlendings

• Derivative financial instruments

• Financial assets at fair value through profit or loss, and

• Financial liabilities at fair value through profit or loss.

Receivables

Receivables are recognised at cost.

Onlendings

Onlendings, with the exception of loans to cooperative housing societies, are included in the Balance Sheet at their redemption value which is representative of market value. The majority of onlendings are made from debt pools. Each pool is designed to match a borrowing for a given term to maturity. Loans to cooperative housing societies are based on the balance of each housing society’s loans to its members adjusted where necessary for a specific provision for impairment.

Derivative financial instruments

Derivatives which are used to hedge either financial assets or financial liabilities are initially recognised at fair value on the date on which a derivative contract is entered into and are subsequently remeasured at their fair value. Fair values are derived using quoted market prices in active markets and using accepted market valuation techniques, including discounted cash flow models and other pricing models, as appropriate.

Changes in the fair value of derivative financial instruments are recognised immediately in the Income Statement offsetting the changes in fair value of the hedged financial assets and financial liabilities designated as fair value through profit or loss.

All derivatives are carried as assets when fair value is positive and as liabilities when fair value is negative.

Financial assets at fair value through profit or loss

Financial assets which include all other investments are valued at fair value at balance date. Unrealised gains and losses are brought to account in the Income Statement.

Financial liabilities at fair value through profit or loss

Financial liabilities which include deposits and interest bearing liabilities are valued as fair value at balance date. Unrealised gains and losses are brought to account in the Income Statement.

(g) Settlement date accounting

Purchases and sales of financial assets and liabilities at fair value through profit or loss are recognised on settlement date. QTC accounts for any change in the fair value of the asset to be received during the period between the trade date and settlement date in the same way as it accounts for the acquired asset.

(h) Payment in lieu of income tax

QTC is exempt from the payment of income tax under section 50-25 of the Income Tax Assessment Act 1977 (as amended).

QTC makes a payment in lieu of income tax to the Consolidated Fund. The calculation of the income tax liability is based on the income of certain activities controlled by the QTC Capital Markets Board.

In calculating the payment in lieu of income tax expense, tax effect accounting principles are adopted for income received and expenses paid in relation to the management and administration of clients’ borrowings and deposits as well as for advisory services and structured finance transactions. For all other QTC operations on which a payment in lieu of income tax is made, tax effect accounting principles are not applied.

QTC’s subsidiaries are defined as state and territory bodies under section 24AO of the Income Tax Assessment Act 1936 and as a consequence are exempt from Commonwealth tax under section 24AM of this Act.

Deferred income tax is provided in full, using the liability method, on all temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements.

Deferred income tax liabilities are recognised for all taxable temporary differences arising from prepayments of expenditure of QTC. Deferred income tax assets are recognised for deductible temporary differences arising from accruals of expenditure and employee benefits and depreciation charged on property, plant and equipment.

Deferred tax assets are recognised where it is probable that future taxable income will be available against which the temporary differences can be utilised.

(i) Rounding

Amounts have been rounded to the nearest thousand dollars except for note 15 which is rounded to the nearest million dollars.

14 QUEENSLAND TREASURY CORPORATION

3. Interest Income and Interest Expense

FOR THE HALF YEAR ENDED 31 DECEMBER 2005

			Net unrealised			Net realised
	Interest		gain/loss			gain/loss		Total
Description	$000		$000			$000		$000
Interest Income
Other financial assets		339 197		(19 128	)		19 666		339 735
Onlendings *		466 634		(22 756	)		—		443 878
		805 831		(41 884	)		19 666		783 613
Interest Expense
Interest bearing liabilities		700 969		(130 566	)		42 292		612 695
Deposits		141 146		(58	)		—		141 088
		842 115		(130 624	)		42 292		753 783

FOR THE HALF YEAR ENDED 31 DECEMBER 2004

			Net unrealised		Net realised
	Interest		gain/loss		gain/loss		Total
Description	$000		$000		$000		$000
Interest Income
Other financial assets		257 334		46 106		34 871		338 311
Onlendings *		739 738		50 551		206		790 495
		997 072		96 657		35 077		1 128 806
Interest Expense
Interest bearing liabilities		664 922		315 813		8 586		989 321
Deposits		116 239		1		—		116 240
		781 161		315 814		8 586		1 105 561

* The majority of onlendings are provided to customers on a pooled fund basis. Interest costs are allocated to customers based on the daily movement in the market value of the pooled fund. Except for fixed rate loans, the interest from onlendings figure includes unrealised gains and losses which reflects the amount charged to clients. In periods of rising interest rates, the market value of the funding pool will fall leading to lower than normal interest income from onlendings. During the half year ended 31 December 2005, interest rates increased in comparison to the previous half year when rates fell, leading to a large decrease in interest income for the period.

2005 HALF YEARLY REPORT 15

Notes to and forming part of the Financial Statements
for the half-year ended 31 December 2005 (continued)

4. Management Fees

Management fees represent income earned from the management of various assets and liabilities. A further amount of $3.327 million (2004 $3.191 million) derived from interest rate margins on certain managed funds and pools has been included under interest income.

5. Cash

Cash includes only those funds held at bank and does not include money market deposits.

6. Onlendings

	31 December 2005			30 June 2005			31 December 2004
	$000			$000			$000
Government departments and agencies		2 177 460			2 769 630			2 843 041
Government owned corporations		12 430 236			11 020 349			10 702 403
Local government		2 644 234			2 781 219			2 605 050
Tollway companies		970 391			982 521			975 844
QTC related entities(1)		393 284			413 832			438 020
Statutory bodies		743 711			705 015			649 478
Cooperative housing society loans		10 950			15 016			18 174
Provisions for impaired loans		(216	)		(136	)		(97	)
Other bodies		217 103			218 175			216 490
		19 587 153			18 905 621			18 448 403

⁽¹⁾ Included in the above figure is an onlending to DBCT Holdings Pty Ltd to fund the purchase and lease of operating rights to the Dalrymple Bay Coal Terminal (refer note 11 and note 16). The onlending is offset by a deposit of $393 million (30 June 2005 $414 million) held by QTC on behalf of the lessee of the terminal (refer note 11).

7. Derivative Financial Assets

	31 December 2005		30 June 2005		31 December 2004
	$000		$000		$000
Australia
Forward rate agreements		4 798		10 731		—
Interest rate swaps		57 335		62 629		50 910
Overseas
Forward exchange contracts		—		652		—
Cross currency swaps		—		736		719
Credit derivatives		431		254		436
		62 564		75 002		52 065

This line item is only used from 1 July 2005, the IFRS transition date.

16 QUEENSLAND TREASURY CORPORATION

8. Financial Assets at Fair Value through Profit or Loss

	31 December 2005		30 June 2005		31 December 2004
	$000		$000		$000
Australia
Money market deposits		402 810		458 927		866 533
Discount securities		6 012 273		6 188 411		5 542 075
Commonwealth and State securities *		1 882 896		1 616 313		2 694 720
Floating rate notes		2 561 849		1 951 922		1 537 422
Other investments		1 097 735		1 063 070		321 731
		11 957 563		11 278 643		10 962 481

This line item is only used from 1 July 2005, the IFRS transition date.

The total includes investments made to manage

§	deposits of $5 830.025 million (30 June 2005 $5 220.644 million),
§	surpluses and reserves of $302.170 million (30 June 2005 $277.931 million),
§	cross border lease deferred income of $140.388 million (30 June 2005 $144.770 million).

The remaining investments are used to facilitate yield curve management or result from QTC borrowing in advance of requirements.

* QTC maintains holdings of its own stocks. These holdings have been excluded from both Financial Assets and Financial Liabilities, at fair value through profit or loss (refer note 11).

2005 HALF YEARLY REPORT 17

Notes to and forming part of the Financial Statements
for the half-year ended 31 December 2005 (continued)

9. Property, Plant and Equipment

	31 December 2005		30 June 2005		31 December 2004
	$000		$000		$000
Cross property, plant and equipment		52 776		56 025		59 433
Less accumulated depreciation		17 969		16 759		15 545
Net property, plant and equipment		34 807		39 266		43 888
Represented by
Information technology equipment		9 308		12 558		14 399
Less accumulated depreciation		6 804		8 094		8 871
		2 504		4 464		5 528
Furniture, fittings and office equipment		29 000		29 714		30 826
Less accumulated depreciation		8 906		7 151		5 495
		20 094		22 563		25 331
Plant and Machinery		14 468		13 753		14 208
Less accumulated depreciation		2 259		1 514		1 179
		12 209		12 239		13 029
Net property, plant and equipment		34 807		39 266		43 888

Reconciliations of the carrying amounts for each class of property, plant and equipment are set out below:

	Information			Furniture,
	Technology			Fittings And Office			Plant And
	Equipment			Equipment			Machinery			Total
Description	$000			$000			$000			$000
Carrying amount at 1/7/2004		6 885			27 714			13 889			48 488
Acquisitions		381			133			—			514
Disposals		(128	)		(448	)		(198	)		(774	)
Depreciation		(1 610	)		(2 068	)		(662	)		(4 340	)
Carrying amount at 31/12/2004		5 528			25 331			13 029			43 888
Carrying amount at 1/1/2005		5 528			25 331			13 029			43 888
Acquisitions		377			15			—			392
Disposals		(116	)		(745	)		(146	)		(1 007	)
Depreciation		(1 325	)	��	(2 038	)		(644	)		(4 007	)
Carrying amount at 30/6/2005		4 464			22 563			12 239			39 266
Carrying amount at 1/7/2005		4 464			22 563			12 239			39 266
Acquisitions		52			59			612			723
Disposals		(953	)		(575	)		—			(1 528	)
Depreciation		(1 059	)		(1 953	)		(642	)		(3 654	)
Carrying amount at 31/12/2005		2 504			20 094			12 209			34 807

18 QUEENSLAND TREASURY CORPORATION

10. Derivative Financial Liabilities

	31 December 2005		30 June 2005		31 December 2004
	$000		$000		$000
Australia
Interest rate swaps		8 230		8 230		4 634
Forward rate agreements		—		80		144
Overseas
Forward exchange contracts		90		—		13 187
		8 320		8 310		17 965

This line item is only used from 1 July 2005, the IFRS transition date.

2005 HALF YEARLY REPORT 19

Notes to and forming part of the Financial Statements
for the half-year ended 31 December 2005 (continued)

11. Financial Liabilities at Fair Value through Profit or Loss

	31 December 2005		30 June 2005		31 December 2004
	$000		$000		$000
Deposits at fair value through profit or loss
Government departments and agencies		2 547 149		2 362 397		2 242 958
Government owned corporations		621 445		498 920		385 302
Local governments		1 277 210		1 209 733		1 124 813
Tollway companies		17 844		—		—
Statutory bodies		493 272		450 646		414 217
QTC related entities		14 624		10 874		10 112
Other depositors (1)		513 617		541 784		566 273
		5 485 161		5 074 354		4 743 675
Stock lending		76 058		109 250		53 675
Repurchase agreements		268 806		37 040		—
		5 830 025		5 220 644		4 797 350
(1) Includes a security deposit of $393 million (30 June 2005 $414 million) held on behalf of the lessee of the Dalrymple Bay Coal Terminal.
Interest-bearing liabilities at fair value through profit or loss
Australia
Treasury notes		403 429		612 803		426 452
Bonds		13 617 700		13 876 402		13 171 267
Credit foncier loans		5 040		5 319		5 543
State debt to the Commonwealth		—		—		67 755
		14 026 169		14 494 524		13 671 017
Overseas
Commercial paper		146 648		141 603		970 025
Bonds		10 628 427		9 342 787		8 947 637
Medium term notes		502 843		603 138		684 675
		11 277 918		10 087 528		10 602 337
		25 304 087		24 582 052		24 273 354
		31 134 112		29 802 696		29 070 704

The overseas debt results in no exposure to foreign currencies after accounting for derivatives.

QTC borrowings are guaranteed by the Queensland Government under the Queensland Treasury Corporation Act 1988 and in respect of borrowings undertaken under the name of the Queensland Government Development Authority under the Statutory Bodies Financial Arrangements Act 1982. Other debt for which QTC has assumed debt service responsibility has been guaranteed under the appropriate Act which covered each borrowing at the time the loan was raised.

20 QUEENSLAND TREASURY CORPORATION

12. Reserves

	31 December 2005			30 June 2005			31 December 2004
	$000			$000			$000
General Reserve
Opening balance		39 082			39 082			39 082
Closing balance		39 082			39 082			39 082
Credit Risk Reserve*
Opening balance		16 824			8 857			8 857
Transfer from Retained Surplus		2 190			7 967			5 590
Closing balance		19 014			16 824			14 447
Basis Risk Reserve
Opening balance		13 000			15 000			15 000
Transfer from/(to) Retained Surplus		(500	)		(2 000	)		(1 000	)
Closing balance		12 500			13 000			14 000
Total Reserves		70 596			68 906			67 529
Movements during the period
Credit Risk Reserve		2 190			7 967			5 590
Basis Risk Reserve		(500	)		(2 000	)		(1 000	)
		1 690			5 967			4 590

* QTC’s Cash Fund and Working Capital fund are capital guaranteed. To reduce the impact of a credit failure on its retained earnings, QTC sets aside a certain portion of its fees earned from the Cash Fund, Working Capital Fund and the Floating Rate Funding Pool to the Credit Risk Reserve together with interest accumulated on the reserves. The Reserve will be utilised if a credit event results in there being a shortfall between the guaranteed capital and the investments of either fund.

2005 HALF YEARLY REPORT 21

Notes to and forming part of the Financial Statements
for the half-year ended 31 December 2005 (continued)

13. Cash Flows Presented on a Net Basis

Cash flows arising from the following activities are presented on a net basis in the statement of cash flows:

• sales and purchases of other financial assets

• loan advances to and redemptions from borrowing authorities

• receipt and withdrawal of client deposits, and

• interest bearing liabilities.

14. Contingent Liabilities

The following contingent liabilities existed at balance date:

• A total of $706 million (30 June 2005 $597 million) of Queensland Treasury Corporation inscribed stock was lent to various financial institutions. QTC lends stock on the basis that there is a simultaneous commitment by the other party to return the stock on an agreed date. These loans are made to support the liquidity of QTC bonds in the financial markets and form part of QTC’s total exposure to these financial institutions. Historically, the likelihood of a loss being incurred through default by a counterparty has been remote.

• With regard to certain cross border lease transactions, QTC has assumed responsibility for a significant portion of the transaction risk. If certain events occur, QTC could be liable to make additional payments under the transactions. However external advice and history to date indicate the likelihood of these events occurring is remote. In addition, QTC has provided certain guarantees and indemnities to various participants in the cross border lease transactions. Expert external advisors consider, that unless exceptional and extreme circumstances arise, QTC will not be required to make a significant payment under these guarantees and indemnities.

• To facilitate the merger of the former State owned financial institutions, Suncorp and QIDC with Metway Bank Ltd, QTC provided guarantees relating to certain obligations of the Queensland Government and Suncorp General Insurance Ltd. These guarantees are supported by counter indemnities from the Treasurer on behalf of the State of Queensland.

• QTC has provided guarantees relating to the trading activities of subsidiaries of Ergon Energy, Energex and Enertrade, Queensland Government owned corporations, in the national electricity market to the value of $285 million (30 June 2005 $276.9 million) which are supported by counter indemnities from these Queensland Government owned corporations.

• QTC has provided guarantees to the value of $141.7 million (30 June 2005 $72.6 million) to support the commercial activities of various Queensland public sector entities. In each case, a counter indemnity has been obtained by QTC from the appropriate public sector entity.

• To provide support in relation to the sale by Tarong Energy Corporation Ltd of a 50% share in the Tarong North Power Station, QTC provided a guarantee of certain payment obligations of Tarong Energy Corporation Ltd under the transaction together with providing an irrevocable put option for 50% of the power station exercisable by the option holder under certain circumstances. This guarantee and put option are supported by an indemnity from Tarong Energy Corporation Ltd and an indemnity from the Treasurer for and on behalf of the State of Queensland.

22 QUEENSLAND TREASURY CORPORATION

15. Funding Facilities

		Face Value on Issue		Face Value on Issue
			31 December 2005	30 June 2005
Facility	Limit		$M	$M
Domestic Treasury Note	Unlimited		A  $                  410	A  $	635
Domestic A$ Bond	Unlimited		A  $               13653	A  $	13 328
Global A$ Bond	A  $  15 000M		A  $               10156	A  $	8 846
Multicurrency US Commercial Paper	US$    1 500M		US$                    69	US$	50
Multicurrency Euro Commercial Paper	US$    3 000M		US$                    40	US$	59
Multicurrency Euro Medium Term Note	US$  3 DOOM		US$                  487	US$	360
Multicurrency US Medium Term Note	US$       500M		—		—

16. investments in Companies

Investments in the following companies are held at cost:

		Beneficial		Voting		Beneficial		Voting
		Interest		Rights		Interest		Rights
		December 2005		December 2005		June 2005		June 2005
Name	Principal Activities	%		%		%		%
Queensland Treasury Holdings Pty Ltd	Holding company for a number of subsidiaries and investments		40		24		40		24
DBCT Holdings Pty Ltd*	Owns and leases bulk coal port facilities in North Queensland		20		12		20		12
South East Queensland Water Corporation*	Owns and operates bulk water storage facility in South East Queensland		8		4.8		8		4.8
Local Government Infrastructure Services Pty Ltd	Provide assistance to Queensland local governments in relation to infrastructure procurement		50		50		—	—

* Beneficial interest and voting rights in the company are held indirectly through QTC’s holdings in Queensland Treasury Holdings Pty Ltd.

17. Investments in Controlled Entities

		Equity Holding
Name of Entity	Class of Shares	December 2005			June 2005
Sunshine Locos Pty Limited	Ordinary		100	%		100	%
Sucette Pty Limited	Ordinary		100	%		100	%

2005 HALF YEARLY REPORT 23

Certificate of the Queensland Treasury Corporation

We certify that the foregoing financial statements and notes to and forming part thereof are in agreement with the accounts and records of the Queensland Treasury Corporation.

In our opinion:

(i)	the prescribed requirements for establishing and keeping the accounts have been complied with in all material respects; and
(ii)	the foregoing half yearly financial statements have been drawn up in accordance with AASB 134: Interim Financial Reporting so as to present a true and fair view of the transactions of the Queensland Treasury Corporation for the period 1 July 2005 to 31 December 2005 and of the financial position as at the close of that half year.

G P Garrett	S R Rochester	G P Bradley
General Manager	Chief Executive	Queensland Treasury
Corporate Services		Corporation

Brisbane
14 February 2006

24 QUEENSLAND TREASURY CORPORATION

Independent Review Report
to Queensland Treasury Corporation

Scope

The financial statements

The financial statements of Queensland Treasury Corporation consist of the interim income statement, interim balance sheet, interim statement of changes in equity, interim statement of cash flows, notes to and forming part of the financial statements and certificates given by the Under Treasurer-Queensland Treasury as the corporation sole, Chief Executive and General Manager Corporate Services for the half year ended 31 December 2005.

The corporation sole’s responsibility

The corporation sole is responsible for the preparation and true and fair presentation of the financial statements, the maintenance of adequate accounting records and internal controls that are designed to prevent and detect fraud and error, and for the accounting policies and accounting estimates inherent in the financial statements.

Audit approach

The financial statements have been prepared for the information of management and the Corporation. I disclaim any assumption of responsibility for any reliance on this review report or on the financial statements to which it relates to any person other than management and the Corporation.

My review has been conducted in accordance with Australian Auditing Standards applicable to review engagements. A review is limited primarily to inquiries of Corporation personnel and analytical procedures applied to the financial data, and other procedures as considered necessary. These procedures do not provide all the evidence that would be required in an audit, thus the level of assurance provided is less than that given in an audit. I have not performed an audit and, accordingly, I do not express an audit opinion.

Independence

The Financial Administration and Audit Act 1977 promotes the independence of the Auditor-General and QAO authorised auditors.

The Auditor-General is the auditor of all public sector entities and can only be removed by Parliament.

The Auditor-General may conduct an audit in any way considered appropriate and is not subject to direction by any person about the way in which powers are to be exercised.

The Auditor-General has for the purposes of conducting an audit, access to all documents and property and can report to Parliament matters which in the Auditor-General’s opinion are significant.

Statement

Based on my review, which is not an audit, nothing has come to my attention that causes me to believe that the financial statements of Queensland Treasury Corporation for the half year ended 31 December 2005 do not present fairly the transactions of the Queensland Treasury Corporation and the financial position of the Queensland Treasury Corporation for the period then ended in accordance with prescribed accounting standards and other mandatory professional reporting requirements in Australia.

G G POOLE, FCPA	Queensland Audit Office
Auditor-General of Queensland	Brisbane
	17 February 2006

2005 HALF YEARLY REPORT 25

Appendix A: Loans to Customers (continued)

	Total Debt		Total Debt
	Outstanding		Outstanding		Average Expected		Average Expected
	(Market Value)		(Market Value)		Term (Yrs)*		Term (Yrs)*
	30 June 2005		31 December 2005		30 June 2005		31 December 2005
Loans	A$000		A$000
BODIES WITHIN THE PUBLIC ACCOUNTS
Arts Queensland		10,414		8,133		5.29		6.02
CITEC		5,924		5,435		2.28		N/A
Corptech		987		615		1.58		1.27
Department of Aboriginal & Torres Strait Islander Policy		136		103		1.96		1.45
Department of Education and the Arts		110,966		102,053		6.42		6.01
Department of Emergency Services		5,779		4,506		4.69		4.34
Department of Employment and Training		5,603		4,417		2.32		1.85
Department of Justice and Attorney General		124,068		111,491		N/A		N/A
Department of Main Roads		938,281		906,815		10.35		9.88
Department of Primary Industries — Forestry		82,238		81,456		N/A		N/A
Department of Public Works — Administrative Services		226,673		236,796		N/A		N/A
Department of Public Works — GoPrint		2,328		2,312		N/A		N/A
Department of Public Works — Q-Fleet		299,647		303,701		N/A		N/A
Department of State Development and Innovation		354,264		306,689		N/A		N/A
Department of the Premier and Cabinet		12,044		11,660		3.63		3.13
Monte Carlo Caravan Park Pty Ltd		816		738		4.75		4.24
Queensland Ambulance Service		4,156		3,437		4.04		3.53
Queensland Audit Office		427		336		2.21		1.71
Queensland Fire and Rescue Authority		6,404		5,708		7.42		7.49
Queensland Health		493,323		5,269		10.94		N/A
Queensland Transport		84,727		75,507		7.22		7.14
Sales and Distribution Services		426		284		1.44		0.93
Total		2,769,630		2,177,460
COOPERATIVE HOUSING SOCIETY LOANS
Cooperative Housing Society Loans		14,880		10,814		N/A		N/A
Total		14,880		10,814

26 QUEENSLAND TREASURY CORPORATION

	Total Debt		Total Debt
	Outstanding		Outstanding		Average Expected		Average Expected
	(Market Value)		(Market Value)		Term (Yrs)*		Term (Yrs)*
	30 June 2005		31 December 2005		30 June 2005		31 December 2005
Loans	A$000		A$000
GOVERNMENT OWNED CORPORATIONS
CS Energy Mica Creek Pty Ltd		116,926		109,374		6.85		6.35
Cairns Port Authority		80,315		113,278		N/A		N/A
Central Queensland Port Authority		144,347		142,121		N/A		N/A
CS Energy Ltd		369,117		620,824		N/A		N/A
Energex Limited		2,060,798		2,337,349		N/A		N/A
Enertrade		—		33,307		—		N/A
Ergon Energy Corporation Limited		1,774,029		2,028,883		N/A		N/A
Gateway Investments Corporation Pty Ltd		315,875		304,394		N/A		N/A
Port of Brisbane Corporation		179,375		241,302		N/A		N/A
Queensland Electricity Transmission Corporation Ltd (Powerlink)		1,476,259		1,570,047		N/A		N/A
Queensland Rail		4,015,537		4,316,861		N/A		N/A
Stanwell Corporation Limited		208,819		207,184		N/A		N/A
SunWater		7,688		73,555		5.99		N/A
Tarong Energy Corporation Limited		255,419		317,078		10.96		10.35
Townsville Port Authority		15,844		14,680		6.06		5.54
Total		11,020,349		12,430,236
LOCAL GOVERNMENTS
Aramac Shire Council		46		42		5.43		4.92
Atherton Shire Council		1,349		1,171		4.90		4.66
Balonne Shire Council		4,030		3,770		10.76		10.45
Banana Shire Council		2,673		2,427		6.53		6.20
Barcaldine Shire Council		836		796		9.53		9.05
Barcoo Shire Council		166		145		10		9.40
Bauhinia Shire Council		340		329		12.68		12.16
Beaudesert Shire Council		9,248		7,780		8.88		8.92
Blackall Shire Council		1,420		1,257		9.79		8.69
Boonah Shire Council		2,742		2,627		14.67		14.36
Bowen Shire Council		10,531		9,604		6.31		5.92
Brisbane City Council		1,021,948		993,359		13.95		13.96
Bulloo Shire Council		693		589		3.11		2.62
Bundaberg City Council		13,385		11,556		2.23		2.88
Bungil Shire Council		1,914		1,785		9.23		8.73
Burdekin Shire Council		14,487		13,343		6.97		6.57
Burnett Shire Council		18,988		17,591		12.20		12.20
Caboolture Shire Council		21,960		19,012		8.34		8.02

2005 HALF YEARLY REPORT 27

Appendix A: Loans to Customers (continued)

	Total Debt		Total Debt
	Outstanding		Outstanding		Average Expected		Average Expected
	(Market Value)		(Market Value)		Term (Yrs)*		Term (Yrs)*
	30 June 2005		31 December 2005		30 June 2005		31 December 2005
Loans	A$000		A$000
Cairns City Council		78,602		75,149		4.69		5.16
Calliope Shire Council		4,366		4,233		13.74		13.20
Caloundra City Council		91,124		87,815		12.34		11.84
Caloundra/Maroochy Water Supply Board		22,631		33,644		15.70		18.24
Cambooya Shire Council		191		162		3.15		2.66
Cardwell Shire Council		12,289		11,256		11.89		12.00
Carpentaria Shire Council		1,988		1,873		11.12		10.82
Chinchilla Shire Council		2,872		2,786		13.89		13.35
Clifton Shire Council		254		231		13.28		12.77
Cloncurry Shire Council		7,300		5,721		4.00		4.07
Cook Shire Council		2,759		2,697		18.11		17.61
Cooloola Shire Council		6,484		5,949		7.71		7.40
Crow’s Nest Shire Council		4,100		3,845		8.54		8.08
Dalby Wambo Library Board		30		27		5.00		4.49
Dalby Wambo Salesyard Board		249		243		18.23		17.71
Dalrymple Shire Council		1,372		1,192		7.10		7.17
Diamantina Shire Council		470		459		17.30		16.78
Douglas Shire Council		9,051		7,687		3.18		2.69
Duaringa Shire Council		1,548		1,433		6.11		5.61
Eacham Shire Council		1,725		1,627		9.80		9.42
Emerald Shire Council		1,284		1,174		5.90		5.43
Emerald/Peak Downs Saleyards Board		218		206		8.07		7.56
Esk Shire Council		4,570		4,104		5.35		4.94
Esk, Catton & Laidley Water Board		3		—		0.08		—
Etheridge Shire Council		440		578		13.66		14.80
Fitzroy Shire Council		3,572		3,138		7.54		7.56
Gatton Shire Council		4,951		4,452		6.78		6.54
Gayndah Shire Council		516		444		6.67		6.73
Gladstone Calliope Aerodrome Board		891		798		4.52		4.03
Gladstone City Council		19,276		15,601		8.95		9.67
Gold Coast City Council		392,964		360,607		8.39		8.11
Goondiwindi Town Council		2,620		2,300		4.94		4.61
Herberton Shire Council		189		159		2.90		2.40
Hervey Bay City Council		56,201		53,975		14.31		13.95
Hinchinbrook Shire Council		365		—		0.18		—
Inglewood Shire Council		114		105		6.48		6.00
Ipswich City Council		103,857		102,081		N/A		N/A

28 QUEENSLAND TREASURY CORPORATION

	Total Debt		Total Debt
	Outstanding		Outstanding		Average Expected		Average Expected
	(Market Value)		(Market Value)		Term (Yrs)*		Term (Yrs)*
	30 June 2005		31 December 2005		30 June 2005		31 December 2005
Loans	A$000		A$000
Isis Shire Council		9,827		9,612		18.78		18.27
Jericho Shire Council		294		230		2.19		1.69
Johnstone Shire Council		15,148		13,850		8.11		7.48
Jondaryan Shire Council		5,333		5,057		12.99		12.75
Kilcoy Shire Council		627		546		11.13		11.80
Kingaroy Shire Council		4,567		4,111		13.21		13.02
Kolan Shire Council		1,529		1,425		10.52		10.31
Laidley Shire Council		4,678		3,893		5.84		5.98
Livingstone Shire Council		22,325		20,973		12.72		12.58
Logan City Council		90,867		79,221		7.90		7.45
Longreach Shire Council		1,743		1,647		15.46		15.39
Mackay City Council		57,526		55,141		13.34		12.48
Mareeba Shire Council		10,798		9,967		8.07		7.74
Maroochy Shire Council		150,740		140,666		6.27		5.76
Maryborough City Council		14,428		13,321		8.85		8.95
McKinlay Shire Council		739		712		12.03		11.53
Mirani Shire Council		3,485		3,320		13.10		12.76
Miriam Vale Shire Council		4,265		3,954		12.32		12.33
Monto Shire Council		311		243		4.17		4.15
Mount Morgan Shire Council		789		762		15.29		14.90
Mount lsa City Council		4,761		4,325		4.96		4.45
Mundubbera Shire Council		68		47		1.52		1.01
Murgon Shire Council		90		75		2.84		2.33
Murweh Shire Council		2,991		2,899		13.80		13.30
Nanango Shire Council		1,507		1,467		16.48		16.00
Noosa Shire Council		38,276		34,578		N/A		9.69
Paroo Shire Council		1,707		1,630		16.46		16.31
Pine Rivers Shire Council		79,122		73,046		6.69		6.24
Redcliffe City Council		14,431		15,688		6.71		6.65
Redland Shire Council		115,530		107,595		9.25		8.94
Richmond Shire Council		11		12		3.73		3.26
Rockhampton City Council		48,102		46,081		11.75		11.31
Rockhampton District Saleyards Board		2,180		2,102		16.32		16.00
Roma Town Council		2,340		3,400		7.18		9.60
Roma-Bungil Showgrounds & Saleyards Board		479		445		6.35		5.83
Rosalie Shire Council		4,087		3,930		15.01		14.66
Sarina Shire Council		8,360		7,606		5.44		4.90

2005 HALF YEARLY REPORT 29

Appendix A: Loans to Customers (continued)

	Total Debt		Total Debt
	Outstanding		Outstanding		Average Expected		Average Expected
	(Market Value)		(Market Value)		Term (Yrs)*		Term (Yrs)*
	30 June 2005		31 December 2005		30 June 2005		31 December 2005
Loans	A$000		A$000
Seisa Island Council		657		609		6.09		5.57
Stanthorpe Shire Council		1,918		1,733		13.42		13.66
Tiaro Shire Council		269		239		5.78		5.45
Toowoomba City Council		50,586		48,831		12.38		11.93
Torres Shire Council		2,524		2,426		11.03		10.51
Townsville City Council		6,565		6,194		8.09		7.62
Warwick shire Council		6,340		5,912		13.60		13.23
Whitsunday Shire Council		17,226		17,151		6.78		6.49
Winton Shire Council		759		662		7.06		7.07
Wondai Shire Council		2,118		1,967		8.82		8.52
Total		2,781,219		2,644,235
STATUTORY BODIES
Drainage Boards
East Deeral Drainage Board		42		38		5.02		4.51
Eugun Bore Water Authority		323		303		7.46		6.94
Matthews Road Drainage Board		46		44		10.20		9.69
South Maroochy Drainage Board		10		9		3.48		2.98
Grammar Schools
Brisbane Girls’ Grammar School		5,143		28,759		5.17		13.07
Brisbane Grammar School		13,647		12,621		6.23		5.76
Ipswich Girls Grammar School		1,713		1,645		10.47		9.96
Ipswich Grammar School		4,418		4,200		8.72		8.21
Rockhampton Girls Grammar School		4,420		4,323		17.83		17.31
Rockhampton Grammar School		4,894		4,602		10.97		10.65
Toowoomba Grammar School		2,448		2,103		4.60		4.26
Townsville Grammar School		12,969		12,482		14.10		13.71
River Improvement Trusts
Pioneer River Improvement Trust		723		683		8.26		7.74
Universities
Griffith University		71,776		67,629		8.30		7.84
James Cook University		15,596		15,215		16.29		15.78
Sunshine Coast University		5,850		20,228		5.69		13.65
Water Boards
Avondale Water Board		753		714		8.36		7.84
Crowley Vale Water Board		13		—		0.27		—
Gladstone Area Water Board		125,059		122,578		N/A		N/A

30 QUEENSLAND TREASURY CORPORATION

	Total Debt		Total Debt
	Outstanding		Outstanding		Average Expected		Average Expected
	(Market Value)		(Market Value)		Term (Yrs)*		Term (Yrs)*
	30 June 2005		31 December 2005		30 June 2005		31 December 2005
Loans	A$000		A$000
Glamorgan Vale Water Board		90		81		4.91		4.39
Grevillea Water Board		11		9		1.98		1.48
Kelsey Creek Water Board		1,848		1,770		9.89		9.38
Merlwood Water Board		94		79		2.83		2.32
North Burdekin Water Board		1,035		847		2.89		2.45
Pioneer Valley Water Board		5,527		5,240		9.54		9.00
Riversdale Murray Valley Water Management Board		1,102		1,065		12.53		12.00
Six Mile Creek Water Board		84		74		4.11		3.61
Water Supply Boards
Bollon South Water Authority		951		925		14.47		13.96
Callandoon Water Supply Board		151		—		0.78		—
Kaywanna Bore Water Supply Board		16		—		0.46		—
Townsville Thuringowa Water Supply Board		79,855		78,284		N/A		N/A
Other Statutory Bodies
Agricultural Colleges		5,185		4,590		4.32		3.85
Cherbourg Aboriginal Council		525		456		3.54		3.03
Island Co-ordinating Council		838		806		14.68		14.33
Major Sports Facilities Authority		291,666		307,116		N/A		N/A
Mt Gravatt Showgrounds Trust		72		65		4.68		4.17
Queensland Art Gallery		177		104		1.19		0.72
Queensland Rural Adjustments Authority		6,760		6,306		7		6.05
Queensland Studies Authority		1,594		1,525		10		9.23
Queensland Tourist and Travel Corporation		378		172		0.86		0.36
South Bank Corporation		36,683		35,550		N/A		N/A
State Library of Queensland		533		470		3.92		3.41
Total		705,015		743,712
SOUTH EAST QUEENSLAND WATER CORPORATION
SEQWater Facility		206,496		205,244		N/A		N/A
Total		206,496		205,244
SUNCORP-METWAY LTD
Suncorp Metway Facility		3,719		3,607		9.24		9.01
Total		3,719		3,607

2005 HALF YEARLY REPORT 31

Appendix A: Loans to Customers (continued)

	Total Debt		Total Debt
	Outstanding		Outstanding		Average Expected			Average Expected
	(Market Value)		(Market Value)		Term (Yrs)*			Term (Yrs)*
	30 June 2005		31 December 2005		30 June 2005			31 December 2005
Loans	A$000		A$000
TOLLWAY COMPANY
Queensland Motorways Limited		982,521		970,391		N/A			N/A
Total		982,521		970,391
QTC RELATED ENTITIES							��
DBCT Holdings Ply Ltd		413,832		393,284		N/A			N/A
Total		413,832		393,284
OTHER BODIES
Agricultural Cooperative Societies		508		524		2.00			1.50
Department of Education and the Arts — State Schools		120		136		1.31			1.71
Parents and Citizens Associations		7,333		7,592		6.79			6.76
Total		7,961		8,252
GRAND TOTAL		18,905,621		19,587,235

Total Debt Outstanding includes Fixed Rate Loans, Operating Leases and Debenture Assets held by QTC (previously recorded as investments).

The balance of customers’ offset deposits held in various pools is offset against customers’ debt outstanding. Working Capital Accounts and Unsettled Operating Leases are not included.

* Average Expected Term – only includes standard principal and interest accounts

– ignores temporary funding and debt offset facility, and

– is not applicable (N/A) for any non-standard principal and interest accounts.

32 QUEENSLAND TREASURY CORPORATION

Appendix B: Partners in Financial Markets

Actual dealer entities may vary depending on the facility and location of the dealer

Domestic and Global A$ Bond Facility Distribution Group

AUSTRALIA AND NEW ZEALAND BANKING GROUP LTD	TELEPHONE
Domestic (Australia)	+61 2 9226 6706
Global (London)	+44 207 378 2378
ABN AMRO BANK NV	TELEPHONE
Domestic (Australia)	+61 2 8259 2200
Global (London)	+44 207 678 3565
CITIGROUP GLOBAL MARKETS AUSTRALIA LTD
Domestic (Australia)	+61 2 8225 6046
Global (London)	+44 207 986 9070
COMMONWEALTH BANK OF AUSTRALIA
Domestic (Australia)	+61 2 9235 0122
Global (London)	+44 207 329 6444
DEUTSCHE CAPITAL MARKETS AUSTRALIA*
Domestic (Australia)	+61 2 9258 1444
Global (London)	+44 207 547 1931
MACQUARIE BANK LTD
Domestic (Australia)	+61 2 8232 3333
Global (London)	+44 207 065 2100
NATIONAL AUSTRALIA BANK LTD
Domestic (Australia)	+61 2 9295 1133
Global (London)	+44 207 710 2916
ROYAL BANK OF CANADA
Domestic (Australia)	+61 2 9033 3222
Global (London)	+44 207 653 4000
TORONTO DOMINION BANK
Domestic (Australia)	+61 2 9619 8866
Global (London)	+44 207 628 4334
UBS AG**
Domestic (Australia)	+61 2 9324 2222
Global (London)	+44 207 567 3080
WESTPAC BANKING CORPORATION
Domestic (Australia)	+61 2 9283 4100
Global (London)	+44 207 621 7620

*	Lead Manager — Europe
**	Lead Manager — United States

QTC Treasury Note Facility Dealer Panel

PANEL MEMBERS	TELEPHONE
Australia and New Zealand Banking Group Ltd	+61 7 3228 3034
Commonwealth Bank of Australia Ltd (Sydney)	+61 2 9221 4099
Deutsche Bank AG (Sydney)	+61 2 9258 3615
Macquarie Bank Ltd (Sydney)	+61 2 8232 3333
National Australia Bank Ltd (Sydney)	+61 2 9295 1133
Westpac Banking Corporation Ltd (Sydney)	+61 2 9283 4133

Multicurrency US Commercial Paper Facility Dealer Panel

PANEL MEMBERS	TELEPHONE
Citigroup Global Markets Inc (New York)	+1 212 723 6252
Credit Suisse First Boston LLC (New York)	+1 212 909 3358
Deutsche Bank Securities (New York)	+1 212 250 7179

Multicurrency Euro Commercial Paper Facility Dealer Panel

PANEL MEMBERS	TELEPHONE
Barclays Bank Plc (London)	+44 207 623 2323
Citigroup International plc (Hong Kong)*	+852 2501 2690
Deutsche Bank AG (London)	+65 6 883 0808
Macquarie Asia Ltd	+61 2 9391 3711
Macquarie Bank Ltd	+61 2 9391 3711
National Australia Bank Limited (Hong Kong and London)	+852 2526 5891
UBS Ltd (London)	+44 207 567 2477

* Lead arranger

Multicurrency Euro Medium-Term Note Facility Dealer Panel^*

PANEL MEMBERS	TELEPHONE
Includes all Domestic and Global A$ Bond Facility Distribution Group*,*and Nomura International Plc (London)	+44 207 521 2000

**	Lead Arranger— UBS Ltd (London)
*	Reverse inquiry also permitted

Multicurrency US Medium-Term Note Facility Dealer Panel*

PANEL MEMBERS	TELEPHONE
ABN AMRO Incorporated (London)	+44 207 588 4079
Citigroup (New York)	+1 212 723 6175
Deutsche Bank Securities Inc (New York)**	+1 212 469 7500
RBC Capital Markets (New York)	+1 212 858 7380

*	Reverse inquiry also permitted
**	Lead Arranger

2005 HALF YEARLY REPORT 33

Appendix B: Partners in Financial Markets

Issuing and Paying Agents for QTC

	CONTACT	TELEPHONE		FACSIMILE
AUD Treasury Notes
Austraclear Services Ltd Sydney	Help Desk		1300 362 257		+61 2 9256 0116
AUD Domestic Bonds
Computershare Investor Services Ltd	Markings/Transfers	+61 3 9415 5000 (ext 5672)			+61 3 9473 2535
AUD Global Bonds
Deutsche Bank Trust Company Americas	Client Services		+1 615 835 2729		+1 615 835 2727
Euro Commercial Paper
Deutsche Bank AG, London	Client Services		+44 207 547 3746		+44 207 547 3665
US Commercial Paper
Deutsche Bank Trust Company Americas	Client Services		+1 212 250 4753		+1 732 578 4635
Euro Medium-Term Notes
Deutsche Bank AG, London	Client Services		+44 207 547 3746		+44 207 547 3665
US Medium-Term Notes
Deutsche Bank Trust Company Americas	Client Services		+1 212 250 4753		+1 732 578 4635

34    QUEENSLAND TREASURY CORPORATION

Appendix C: QTC’s Indicative Borrowing Program for 2006

	Borrowing Estimate			Borrowing Estimate
	2005 A$M			2006 A$M
Refinancings — Commercial Paper
Domestic TNotes i		500			410
Euro Commercial Paper i		750			55
US Commercial Paper i		200			95
Refinancings—Term Debt
Domestic Bonds		2,050			105
A$ Global Bonds and Medium-Term Notes		1,800			0
Foreign Currency Loans and Medium-Term Notes		100			210
SUBTOTAL		5,400			875
New Raisings for Capital Works
Requirements for calendar year 2006		1,600			3,422
Net impact of forward funding		600			(49	)
Principal repayments from QTC Customers		(900	)		(600	)
TOTAL	$	6,700		$	3,648

The 2006 funding estimate of $3,648 million is expected to be financed as follows;

	Actual Raisings			Expected Raisings
	2005			2006
				Range		Low		High
FUNDING SOURCE	$M			%		$M		$M
Commercial Pacer Raisings
TNotes, ECP, USCP		560			15-25		574		912
Term Raisings
A$ Benchmark Bondsii		5,880			70-80		2,554		2,918
Multicurrency Loans and Medium-Term Notes		(107	)		0-10		0		365
TOTAL	$	6,333

i Commercial Paper outstanding as at 31 December 05.

ii includes benchmark Domestic and Global A$ Bonds and other term issuance.

2005 HALF YEARLY REPORT    35

Appendix D: Corporate Directory

Queensland Treasury Corporation

Level 14, 61 Mary Street
Brisbane Queensland Australia

GPO Box 1096
Brisbane Queensland Australia 4001

Telephone: +61 7 3842 4600
Facsimile: +61 7 3221 4122
Internet: www.qtc.qld.gov.au

Queensland Treasury Corporation’s annual and half-yearly reports are available on QTC’s website: www.qtc.qld.gov.au.

EXECUTIVE
Telephone: +61 7 3842 4611	Facsimile: +61 7 3210 0262
TEAMS
Government Owned Corporations
Telephone: +61 7 3842 4715	Facsimile: +61 7 3211 3629
Local Government and Regional Queensland
Telephone: +61 7 3842 4715	Facsimile: +61 7 3842 4958
Government Departments and Agencies
Telephone: +61 7 3842 4715	Facsimile: +61 7 3211 3629
Treasury Services
Telephone: +61 7 3842 4715	Facsimile: +61 7 3211 3629
Customer Services
Telephone: +61 7 3842 4650	Facsimile: +61 7 3221 2486
Leasing
Telephone: +61 7 3842 4727	Facsimile: +61 7 3842 4927
Financial Markets
Telephone: +61 7 3842 4789	Facsimile: +61 7 3221 2410
Settlements
Telephone: +61 7 3842 4644	Facsimile: +61 7 3221 2486
Stock registry services (Computershare)
Telephone: 1800 777 166	Facsimile: +61 3 9670 6373
Corporate Services
Telephone: +61 7 3842 4872	Facsimile: +61 7 3221 4122
Corporate Accounting
Telephone: +61 7 3842 4734	Facsimile: +61 7 3221 4122
Legal
Telephone: +61 7 3842 4704	Facsimile: +61 7 3236 9031
Information Technology
Telephone: +61 7 3842 4641	Facsimile: +61 7 3210 1198
People
Telephone: +61 7 3842 4615	Facsimile: +61 7 3210 2358
Communication
Telephone: +61 7 3842 4685	Facsimile: +61 7 3211 3629

36    QUEENSLAND TREASURY CORPORATION

LEVEL 14, 61 MARY STREET BRISBANE QUEENSLAND AUSTRALIA
GPO BOX 1096 BRISBANE QUEENSLAND AUSTRALIA 4001
TELEPHONE: +6 17 3842 4600 FACSIMILE: +61 7 3221 4122
INTERNET: www.qtc.qld.gov.au