Australian Government General Government Sector Monthly Financial Statements January 2016

Senator the Hon Mathias Cormann
Minister for Finance
Deputy Leader of the Government in the Senate

MC 9/16
Friday, 26 February 2016

Australian Government General Government Sector Monthly Financial Statements
January 2016

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Key Points 

  • The underlying cash balance for the 2015-16 financial year to 31 January 2016 was a deficit of $45,294 million.
  • The fiscal balance for the 2015-16 financial year to 31 January 2016 was a deficit of $41,526 million.
AGGREGATES
ACTUAL
2015-2016
January

ACTUAL
2015-2016
YTD January
MYEFO Profile
2015-2016
YTD January
MYEFO
ESTIMATE*
2015-2016
Full Year
Revenue  25,476 209,302 208,692 400,953
Expenses 37,709 249,706 252,357 432,234
Net operating balance  -12,234 -40,404 -43,666 -31,281
Net capital investment  764 1,121 833 4,484
Fiscal balance  -12,997 -41,526 -44,499 -35,765
Receipts(a) 24,383 205,001 204,847 394,891
less Payments(b) 33,977 248,366 249,295 428,335
less Net Future Fund earnings 211 1,928 2,546 3,955
Underlying cash balance(c) -9,806 -45,294 -46,994 -37,399
Headline cash balance  -10,907 -50,331 -53,820 -48,171
Total assets   430,654   475,317
Total liabilities   784,062   730,100
Net worth(d)   -353,408   -254,783
Net debt(e)   288,767   278,761

*As published in the 2015-16 MYEFO.
(a) Cash receipts for operating activities and sales of non-financial assets.
(b) Cash payments for operating activities, purchases of non-financial assets and net acquisition of assets under finance leases.
(c) Excludes net Future Fund earnings. Consistent with Budget documents, the net adjustment for the Future Fund is shown separately.
(d) Net worth is calculated as total assets minus total liabilities.
(e) Net debt equals the sum of deposits held, government securities, loans and other borrowing, minus the sum of cash and deposits, advances paid, and investments, loans and placements.

Care needs to be taken when comparing monthly or cumulative data across years and to full-year estimates, as revenues and expenses vary from month to month.

FISCAL OUTCOMES

Underlying Cash Balance

The underlying cash balance for the year to 31 January 2016 was a deficit of $45,294 million, compared to the 2015-16 Mid-Year Economic and Fiscal Outlook (MYEFO) profile deficit of $46,994 million. The difference of $1,701 million primarily relates to lower than expected cash payments and higher than expected cash receipts.

Fiscal Balance

The fiscal balance for the year to 31 January 2016 was a deficit of $41,526 million, compared to the MYEFO profile deficit of $44,499 million. The difference of $2,973 million primarily relates to lower than expected expenses and higher than expected revenue.

  • Revenues
    Total revenue was $610 million higher than the MYEFO profile, primarily due to higher than expected taxation revenue.
  • Expenses
    Total expenses were $2,651 million lower than the MYEFO profile, primarily due to lower than expected grants, wages and salaries, supply of goods and services, and personal benefits expenses.

Assets and Liabilities

As at 31 January 2016:

  • Net worth is negative $353,408 million;
  • Net debt is $288,767 million; and
  • Net financial liabilities are $516,815 million.

 

Senator the Hon Mathias Cormann
Minister for Finance

26 February 2016
Jane Halton
Secretary
Department of Finance
26 February 2016
 
 
 
Contact: Senator the Hon Mathias Cormann's Office:
Department of Finance:
Karen Wu (02) 6277 7400
Liz Pash (02) 6215 2222

Australian Government general government sector operating statement

 Note
ACTUAL
2015-2016
January

ACTUAL
2015-2016
YTD January
MYEFO Profile
2015-2016
YTD January
MYEFO ESTIMATE*
2015-2016
Full Year
Revenue          
Taxation revenue 1, 2 24,139 197,698 196,913 375,923
Sales of goods and services   549 4,418 4,436 7,956
Interest income   278 2,012 2,044 4,519
Dividend income   92 1,568 1,669 3,841
Other   417 3,606 3,629 8,714
Total revenue   25,476 209,302 208,692 400,953
Expenses          
Gross operating expenses          
Wages and salaries(a)   1,384 10,658 11,354 20,072
Superannuation   505 3,551 3,406 5,930
Depreciation and amortisation   602 4,035 4,057 7,129
Supply of goods and services   6,284 46,999 47,806 82,423
Other operating expenses(a)   458 3,332 3,274 5,439
Total gross operating expenses   9,232 68,575 69,897 120,992
Superannuation interest expense   769 5,387 5,385 9,231
Interest expenses   1,445 9,629 9,732 17,260
Current transfers          
Current grants   14,182 74,484 75,229 127,737
Subsidy expenses   1,048 7,249 7,425 12,944
Personal benefits   10,491 78,641 78,695 133,402
Total current transfers   25,721 160,374 161,349 274,084
Capital transfers          
Mutually agreed write-downs   -159 1,023 1,137 1,887
Other capital grants   701 4,720 4,857 8,780
Total capital transfers   542 5,743 5,994 10,667
Total expenses 3 37,709 249,706 252,357 432,234
Net operating balance   -12,234 -40,404 -43,666 -31,281
Other economic flows           
 - included in operating result(b)          
Net write-downs of assets (including bad and doubtful debts)   -1,918 -7,544 -3,892 -8,037
Assets recognised for the first time   28 195 266 322
Liabilities recognised for the first time    0 0 0 0
Actuarial revaluations   0 0 0 0
Net foreign exchange gains   -540 -1,317 -520 -518
Net swap interest received   -31 -441 -410 -410
Market valuation of debt   -4,609 -5,260 -266 832
Other gains/(losses)   1,318 4,740 3,722 5,195
Total other economic flows           
 - included in operating result   -5,752 -9,627 -1,099 -2,616
Operating result   -17,986 -50,031 -44,765 -33,897
Non-owner movements in equity(b)          
Revaluation of equity investments(c)   -1 3 -599 846
Actuarial revaluations   0 0 0 -2,926
Other economic revaluations(d)   155 -1,031 -535 1
Total other economic flows - included in equity   154 -1,028 -1,134 -2,079
Comprehensive result - Total change in net worth   -17,832 -51,059 -45,899 -35,976
Net operating balance   -12,234 -40,404 -43,666 -31,281
Net acquisition of non-financial assets          
Purchases of non-financial assets   1,263 5,244 5,027 11,661
less Sales of non-financial assets   23 288 314 528
less Depreciation   602 4,035 4,057 7,129
plus Change in inventories   101 84 125 421
plus Other movements in non-financial assets   25 116 52 59
Total net acquisition of non-financial assets   764 1,121 833 4,484
Fiscal balance (Net lending/borrowing)(e)   -12,997 -41,526 -44,499 -35,765

*As published in the 2015-16 MYEFO.
(a) Consistent with Australian Bureau of Statistics' (ABS) Government Finance Statistics (GFS) classification, other employee related expenses are reported under other operating expenses. Total employee expenses equal wages and salaries plus other operating expenses.
(b) The presentation of other economic flows has changed to align more closely with Australian Accounting Standard AASB 1049.
(c) Reflects changes in the market valuation of investments and any revaluations at the point of disposal or sale.
(d) Largely reflects other revaluation of assets and liabilities.
(e) The term fiscal balance is not used by the ABS.

Australian Government general government sector balance sheet

 ACTUAL
as at
31 January 2016
MYEFO ESTIMATE*
as at
30 June 2016
Assets    
Financial assets    
Cash and deposits 2,944 3,872
Advances paid 48,943 53,218
Investments, loans and placements 128,267 154,537
Other receivables 47,999 46,594
Equity investments    
Investments in other public sector entities 44,088 49,087
Equity accounted investments 314 315
Investments - shares 38,780 44,939
Total financial assets 311,336 352,560
Non-financial assets    
Land 9,938 9,780
Buildings 25,482 26,198
Plant, equipment and infrastructure  57,079 59,667
Inventories 8,313 8,351
Intangibles 6,601 6,835
Investment property 203 187
Biological assets 38 44
Heritage and cultural assets 11,269 11,344
Assets held for sale 80 87
Other non-financial assets 314 265
Total non-financial assets 119,318 122,757
Total assets 430,654 475,317
Liabilities    
Interest bearing liabilities    
Deposits held 216 218
Government securities 455,465 472,416
Loans 11,560 16,191
Other borrowing 1,680 1,562
Total interest bearing liabilities 468,921 490,387
Provisions and payables    
Superannuation liability(a) 252,732 173,958
Other employee liabilities  16,489 17,059
Suppliers payable 5,204 5,972
Personal benefits provisions and payable 11,052 13,304
Subsidies provisions and payable 4,711 5,035
Grants provisions and payable 10,489 9,397
Other provisions and payables 14,466 14,990
Total provisions and payables 315,142 239,714
Total liabilities 784,062 730,100
Net worth(b) -353,408 -254,783
Net financial worth(c) -472,726 -377,540
Net financial liabilities(d)  516,815 426,627
Net debt(e) 288,767 278,761

*As published in the 2015-16 MYEFO.
(a) For budget reporting purposes, a discount rate applied by actuaries in preparing Long Term Cost Reports is used to value the superannuation liability. This reduces the volatility in reported liabilities that would occur from year to year if the long-term government bond rate were used. Consistent with Australian Accounting Standards, the long-term government bond rate as at 30 June is used to calculate the superannuation liability for the purpose of actuals reporting.
(b) Net worth is calculated as total assets minus total liabilities.
(c) Net financial worth equals total financial assets minus total liabilities.
(d) Net financial liabilities equals total liabilities less financial assets other than investments in other public sector entities.
(e) Net debt equals the sum of deposits held, government securities, loans and other borrowing, minus the sum of cash and deposits, advances paid, and investments, loans and placements.

Australian Government general government sector cash flow statement

 
ACTUAL
2015-2016
January

ACTUAL
2015-2016
YTD January
MYEFO Profile
2015-2016
YTD January
MYEFO ESTIMATE*
2015-2016
Full Year
Cash receipts from operating activities        
Taxes received 23,016 192,037 191,488 368,230
Receipts from sales of goods and services 546 3,989 4,364 7,870
Interest receipts 239 1,628 1,645 3,874
Dividends and income tax equivalents 101 3,244 3,157 4,516
Other receipts 464 3,913 3,716 8,505
Total operating receipts 24,366 204,812 204,370 392,995
Cash payments for operating activities        
Payments for employees -1,911 -15,619 -15,825 -28,130
Payments for goods and services -4,709 -47,220 -47,950 -82,104
Grants and subsidies paid -15,385 -87,260 -87,199 -150,706
Interest paid -1,162 -8,444 -8,452 -15,040
Personal benefit payments -8,997 -81,552 -81,326 -135,228
Other payments  -633 -3,373 -3,406 -5,313
Total operating payments -32,797 -243,468 -244,159 -416,521
Net cash flows from operating activities -8,432 -38,656 -39,789 -23,526
Cash flows from investments in
non-financial assets
       
Sales of non-financial assets 17 189 477 1,896
Purchases of non-financial assets -1,180 -4,840 -5,136 -11,812
Net cash flows from investments in non-financial assets -1,163 -4,651 -4,659 -9,917
Net cash flows from investments in financial assets for policy purposes -1,312 -6,966 -9,371 -14,727
Cash flows from investments in
financial assets for liquidity purposes
       
Increase in investments 2 10,412 7,841 -13,132
Net cash flows from investments in
financial assets for liquidity purposes
2 10,412 7,841 -13,132
Cash flows from financing activities        
Borrowing (net) 8,900 41,305 48,584 64,552
Other financing (net) -357 -1,655 -1,632 -2,535
Net cash flows from financing activities 8,544 39,650 46,952 62,017
Net increase/(decrease) in cash held -2,361 -212 973 716
Net cash flows from operating activities and investments in non-financial assets
(Surplus(+)/deficit(-))
-9,595 -43,307 -44,448 -33,443
Finance leases and similar arrangements(b) 0 -58 -1 -2
GFS cash surplus(+)/deficit(-) -9,595 -43,365 -44,449 -33,444
less Net Future Fund earnings 211 1,928 2,546 3,955
Equals underlying cash balance(c) -9,806 -45,294 -46,994 -37,399
plus Net cash flows from investments in financial assets for policy purposes -1,312 -6,966 -9,371 -14,727
plus Net Future Fund earnings 211 1,928 2,546 3,955
Equals headline cash balance -10,907 -50,331 -53,820 -48,171

*As published in the 2015-16 MYEFO.
(a) A positive number denotes a cash inflow; a negative sign denotes a cash outflow.
(b) The acquisition of assets under finance leases decreases the underlying cash balance.The disposal of assets previously held under finance leases increases the underlying cash.
(c) The term underlying cash balance is not used by the Australian Bureau of Statistics.

 

Note 1: Income Tax

 
ACTUAL
2015-2016
January

ACTUAL
2015-2016
YTD January
MYEFO Profile
2015-2016
YTD January
MYEFO ESTIMATE*
2015-2016
Full Year
Individuals and other withholding taxes        
Gross income tax withholding  11,855 99,467 99,638 176,550
Gross other individuals 1,410 19,551 19,147 44,310
less Refunds 1,072 22,070 21,916 27,500
Total individuals and other withholding taxation 12,193 96,947 96,869 193,360
Fringe benefits tax 853 2,932 2,882 4,610
Company tax 4,181 35,000 35,198 67,996
Superannuation funds 732 4,682 4,901 7,780
Resource rent taxes 142 558 760 960
Total income taxation revenue 18,100 140,119 140,610 274,706

*As published in the 2015-16 MYEFO.

 

Note 2: Indirect Tax

 
ACTUAL
2015-2016
January

ACTUAL
2015-2016
YTD January
MYEFO Profile
2015-2016
YTD January
MYEFO ESTIMATE*
2015-2016
Full Year
Goods and services tax 3,115 32,870 32,248 59,790
Wine equalisation tax 101 524 487 850
Luxury car tax 53 346 332 520
Excise duty 1,553 12,572 12,495 21,393
Customs duty 1,069 7,887 7,466 12,910
Other indirect tax 147 3,380 3,275 5,754
Total indirect taxation revenue 6,039 57,579 56,303 101,217

*As published in the 2015-16 MYEFO.

 

Note 3: Total expenses by function

 
ACTUAL
2015-2016
January
ACTUAL
2015-2016
YTD January
MYEFO ESTIMATE*
2015-2016
Full Year
Expenses by function      
General public services 1,851 12,025 22,639
Defence 2,127 15,358 26,559
Public order and safety 414 2,860 4,958
Education  5,938 22,395 32,478
Health  5,326 38,511 68,686
Social security and welfare  12,446 90,827 152,782
Housing and community amenities 300 2,533 5,434
Recreation and culture 270 1,849 3,440
Fuel and energy 546 3,833 6,773
Agriculture, Forestry and Fishing 139 1,101 3,119
Mining, manufacturing and construction 294 1,849 3,619
Transport and communication 420 2,882 8,882
Other economic affairs 699 5,181 10,131
Other purposes      
Public debt interest 1,324 8,909 15,680
Nominal superannuation interest 769 5,387 9,231
General purpose inter-government transactions 4,843 34,207 59,239
Natural disaster relief 0 0 40
Contingency reserve 0 0 -1,456
Total expenses 37,709 249,706 432,234

*As published in the 2015-16 MYEFO.

NOTES:

Australian Accounting Standard 1049

The Australian Government Monthly Financial Statements have been prepared on a basis consistent with the Budget as required under section 47 of the Public Governance, Performance and Accountability Act 2013. The statements are prepared in accordance with the Australian Accounting Standards Board 1049 – Whole of Government and General Government Sector Financial Reporting (AASB 1049), which require treatment based on the Australian Bureau of Statistics’ (ABS) Government Finance Statistics (GFS) except where Australian Accounting Standards (AAS) provide a better conceptual treatment for specific items. Departures are limited to complying with either ABS GFS or AAS.

Taxation Revenue

While total tax collections are known with certainty at the end of each month, the distribution across the relevant heads of revenue cannot be finalised until all Business Activity Statements are received and processed. The outcomes for some revenue items provided in this statement are therefore estimates, in accordance with the best judgement of the Commissioner of Taxation, and subject to revision. The taxation revenue items not affected are: petroleum resource rent tax, excise duty, customs duty, other taxes and individuals refunds.

Style Conventions

Figures in tables and generally in the text have been rounded. Discrepancies in tables between totals and sums of components are due to rounding.

International Monetary Fund Special Data Dissemination Standards

The Government is committed to releasing the Monthly Financial Statements in a timely fashion and will endeavour to do so in accordance with International Monetary Fund (IMF) Special Data Dissemination Standards (SDDS). Under these standards the timeframe for releasing the Monthly Financial Statements is by the end of the following month. Australia applies a special flexibility option which allows it to publish late the last and first month of a financial year.

In accordance with the IMF SDDS, the approximate date of release of the data on debt guaranteed by the Australian Government (central government), is given on the IMF’s Data Dissemination Advance Release Calendar http://dsbb.imf.org external link icon. Monthly and quarterly data on debt guaranteed by the Australian Government (central government) that meet the coverage and timeliness requirements of the SDDS are published on the Australian Office of Financial Management website at http://aofm.gov.au/cgs-quarterly/quarterley-data-January-2015/external link icon.

Electronic access to monthly financial statements

The Australian Government general government sector Monthly Financial Statements and the historical series are available in electronic format at:

http://data.gov.au/dataset/australian-government-general-government-sector-monthly-financial-statements-tables-and-dataexternal link icon.

Last updated: 26 February 2016