SYDNEY, Oct 13 (Reuters) - Australia's central bank made a net profit of A$2.9 billion in the year to June ($2.2 billion) and is set to pay A$3.2 billion into government coffers in 2016/17, a useful contribution in the struggle to rein in budget deficits.
In its annual report, the Reserve Bank of Australia (RBA) said it made underlying earnings of A$1.2 billion in 2015/16 and A$3.4 billion in valuation gains from its reserves of foreign currency.
Of that A$4.6 billion in earnings, A$1.4 billion was transferred to the RBA's reserve fund which is used to offset any future losses.
That left A$3.2 billion as a dividend for the government and Treasurer Scott Morrison decided all of it should be paid in the 2016/17 year, the RBA said.
The Treasurer also requested a second dividend instalment of A$942 million from 2014/15 that had been scheduled to be paid in 2016/17, instead be paid in 2015/16.
The conservative government has been struggling to rein in its budget deficit in the face of sluggish revenues and rising expenditure.