RBA pays $1.9bn dividend to government

The federal government received a dividend of $1.9 billion from the Reserve Bank for the 2014/15 financial year.

In its annual report tabled in parliament on Thursday, central bank governor Glenn Stevens says $1.6 billion of its $3.5 billion of distributable earnings in the financial year were placed in the Reserve Bank's reserve fund at the request of the federal treasurer.

"This reserve stood at $12.7 billion at balance date, a strong position given the risks on the Bank's balance sheet," Mr Stevens said.

The RBA recorded a net profit of $6.9 billion in 2014/15, largely helped by a fall in the Australian dollar boosting valuation gains in its foreign reserves portfolio.

In 2013/14, the central bank recorded a profit of $9.4 billion, but this was mostly the result of an $8.8 billion grant from the Abbott government to boost its depleted reserves.