NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 June 2004

(a) Interest Revenues and Expenses from Activities

The following table shows the average balance for each of the major categories of interest-bearing assets and liabilities, the amount of the interest revenue and expense and the average interest rate.  Averages are based on month end averages and are representative of TASCORP’s operations during the year. Cross Currency Swaps are reported as gross interest paid and gross interest received under each respective leg of the Currency Swap.

		Average Balance 2003-04 A$’000	Interest 2003-04 A$’000	Average Rate 2003-04 %		Average Balance 2002-03 A$’000	Interest 2002-03 A$’000	Average Rate 2002-03 %
Interest Revenue
Interest on Investments
Domestic
Securities – Government and Institutions		332,961	18,926	5.68		334,031	25,763	7.71
Banks and Other Financial Institutions		1,550,440	82,197	5.30		901,986	44,472	4.93
Bills and Other Securities		1,697,348	95,631	5.63		2,144,638	121,880	5.68
Overseas
Bills and Other Securities		322,524	14,558	4.51		256,424	13,614	5.31
Total Interest on Investments		3,903,273	211,312	5.41		3,637,079	205,729	5.68
Interest on Advances		2,530,068	159,539	6.31		2,609,796	173,542	6.65
Interest on Cross Currency Swaps		569,873	27,235	4.78		548,335	24,670	4.50
Total Interest Revenue		7,003,214	398,086	5.68		6,795,210	403,941	5.94
Interest Expense
Interest on Borrowings
Domestic Preferred Stocks		2,861,419	174,701	6.11		2,182,487	144,078	6.60
Domestic Commercial Paper		1,304,494	69,188	5.30		1,385,486	66,038	4.77
Domestic Other Securities		232,702	16,037	6.89		228,485	16,021	7.04
Overseas Commercial Paper		594,036	31,296	5.27		1,196,206	62,983	5.27
Overseas Other Securities		368,275	26,626	7.23		384,626	24,569	6.39
Total Interest on Borrowings		5,360,926	317,848	5.93		5,377,290	313,689	5.83
Interest on Deposits		1,081,809	46,022	4.25		813,993	51,314	6.30
Interest on Cross Currency Swaps		596,015	24,234	4.07		535,612	27,214	5.08
Total Interest Expense		7,038,750	388,104	5.51		6,726,895	392,217	5.83

		2003-04 A$’000		2002-03 A$’000
Rental Income		1,892		1,843
Options Sold		318		74
Advisory Service and Commitment Fees		285		310
Other Income		458		307
Other Revenue from Ordinary Activities		2,953		2,534

		2003-04 A$’000		2002-03 A$’000
Gain or (Loss) on Disposal of Financial Instruments
Advances		8,933		11,503
Investments
Securities – Government and Institutions		3,586		0
Term Deposits – Banks and Financial Institutions		(39)		(3)
Bills and Other Securities		83		(21)
Deposits		33		(7)
Borrowings
Domestic Preferred Stocks		(758)		(10,625)
Domestic Commercial Paper		94		0
Domestic Other Securities		(11,213)		(6)
Overseas Other Securities		0		(1333)
Total Gain/(Loss) on Disposal of Financial Instruments		719		(480)