The Reserve Bank of Australia (RBA) has transferred a dividend of $500 million to the federal government of Australia this year, according to the data released by the central bank.

The central bank had reportedly requested the treasurer to not pay the dividend to the government during this financial year. The central bank generated about $1.1 billion profit in the financial year 2011- 2012 and distributed the dividend this year after Mr Swan's insisted on paying the dividend.

The discussions over the issue of dividend began in March 2012 when Treasury manager Nick Creagh wrote a letter to RBA assistant governor corporate services Frank Campbell. Mr Campbell has responded by saying that the board of the RBA has decided not to pay any dividend for the financial year to the federal government and had also said that the treasurer has agreed in principle.

Governor Glenn Stevens had again written to Mr Swan insisting that the Reserve Bank Reserve Fund (RBRF) has been depleted and the dividend should not be paid to the federal government for the financial year. Mr Swan responded by saying that dividend of $500 million was appropriate and allowed the central bank to retain the remaining funds.