Australian Government General Government Sector Monthly Financial Statements July and August 2016

 

Senator the Hon Mathias Cormann
Minister for Finance

MC 49/16
Friday, 14 October 2016

Australian Government General Government Sector Monthly Financial Statements July and August 2016

Print Version PDF icon

KEY POINTS

  • The underlying cash balance for the 2016-17 financial year to 31 August 2016 was a deficit of $11,341 million.
  • The fiscal balance for the 2016-17 financial year to 31 August 2016 was a deficit of
    $14,142 million.
AGGREGATESACTUAL
2016-2017
July
$m
ACTUAL
2016-2017
August
$m
ACTUAL
2016-2017
YTD August
$m
Budget Profile
2016-2017
YTD August
$m
BUDGET ESTIMATE*
2016-2017
Full Year
$m
Revenue 32,149 30,339 62,489 63,427 416,862
Expenses 40,015 36,576 76,591 77,266 450,553
Net operating balance -7,866 -6,237 -14,102 -13,839 -33,691
Net capital investment -625 664 39 267 3,437
Fiscal balance -7,241 -6,901 -14,142 -14,106 -37,129
Receipts(a) 31,632 33,007 64,639 63,915 411,284
less Payments(b) 40,523 34,943 75,466 76,186 445,045
less Net Future Fund earnings 229 285 514 408 3,321
Underlying cash balance(c) -9,120 -2,221 -11,341 -12,679 -37,081
Headline cash balance -9,934 -2,952 -12,887 -15,118 -53,438
Total assets 471,108   469,814   509,633
Total liabilities 897,575   901,481   810,561
Net worth(d) -426,467   -431,666   -300,929
Net debt(e) 307,861   312,255   325,962

*As published in the 2016-17 Budget.
(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 August 2016 was a deficit of $11,341 million, which is $1,338 million lower than the 2016-17 Budget profile deficit of $12,679 million.

  • Receipts
    Total receipts were $724 million higher than the 2016-17 Budget profile.
  • Payments
    Total payments were $720 million lower than the 2016-17 Budget profile.

Fiscal Balance

The fiscal balance for the year to 31 August 2016 was a deficit of $14,142 million, which is consistent with the 2016-17 Budget profile deficit of $14,106 million. The difference of $36 million relates to lower than expected revenue partially offset by lower than expected expenses.

Assets and Liabilities

As at 31 August 2016:

  • Net worth is negative $431,666 million;
  • Net debt is $312,255 million; and
  • Net financial liabilities are $605,181 million.
Senator the Hon Mathias Cormann
Minister for Finance
Jane Halton
Secretary
Department of Finance

 
 
 
Contact: Senator the Hon Mathias Cormann's Office: Karen Wu 0428 350 139

 Australian Government general government sector operating statement 

 NoteACTUAL
2016-2017
July
$m
ACTUAL
2016-2017
August
$m
ACTUAL
2016-2017
YTD August
$m
Budget
Profile
2016-2017
YTD August
$m
BUDGET
ESTIMATE*
2016-2017
Full Year
$m
Revenue            
Taxation revenue 1, 2 30,318 28,480 58,798 59,318 391,283
Sales of goods and services   811 669 1,481 1,433 9,249
Interest income   287 294 581 708 4,280
Dividend income   125 291 416 634 3,242
Other   608 605 1,213 1,333 8,807
Total revenue   32,149 30,339 62,489 63,427 416,862
Expenses            
Gross operating expenses            
Wages and salaries(a)   1,604 1,735 3,339 3,336 20,071
Superannuation   585 613 1,198 780 4,618
Depreciation and amortisation   688 612 1,300 1,250 7,522
Supply of goods and services   7,374 7,486 14,860 14,946 86,745
Other operating expenses(a)   467 516 983 936 5,452
Total gross operating expenses   10,718 10,962 21,680 21,248 124,408
Superannuation interest expense   727 812 1,538 1,660 9,959
Interest expenses   1,373 1,373 2,747 2,926 18,725
Current transfers            
Current grants   12,515 9,958 22,472 22,991 138,966
Subsidy expenses   1,054 1,077 2,131 2,214 13,425
Personal benefits   12,718 11,427 24,145 24,073 132,562
Total current transfers   26,287 22,462 48,748 49,278 284,953
Capital transfers            
Mutually agreed write-downs   122 123 246 332 1,845
Other capital grants   788 844 1,632 1,822 10,663
Total capital transfers   911 967 1,878 2,154 12,508
Total expenses 3 40,015 36,576 76,591 77,266 450,553
Net operating balance   -7,866 -6,237 -14,102 -13,839 -33,691
Other economic flows            
- included in operating result            
Net write-downs of assets (including bad and doubtful debts)   -365 -400 -764 -1,156 -8,077
Assets recognised for the first time   18 26 44 92 348
Liabilities recognised for the first time   0 0 0 0 0
Actuarial revaluations   0 0 0 0 0
Net foreign exchange gains   477 -71 406 8 8
Net swap interest received   -6 31 25 0 0
Market valuation of debt   -3,460 -128 -3,588 560 3,156
Other gains/(losses)   914 390 1,303 844 4,705
Total other economic flows            
- included in operating result   -2,423 -152 -2,574 347 140
Operating result (b)   -10,288 -6,388 -16,676 -13,492 -33,552
Non-owner movements in equity            
Revaluation of equity investments(c)   42 2 44 0 -2,880
Actuarial revaluations   0 0 0 0 -6
Other economic revaluations(d)   2,344 1,186 3,530 5,464 536
Total other economic flows - included in equity   2,386 1,188 3,575 5,464 -2,350
Comprehensive result - Total change in net worth   -7,902 -5,200 -13,102 -8,028 -35,902
Net operating balance   -7,866 -6,237 -14,102 -13,839 -33,691
Net acquisition of non-financial assets            
Purchases of non-financial assets   373 1,291 1,665 1,558 11,416
less Sales of non-financial assets   15 29 44 84 932
less Depreciation   688 612 1,300 1,250 7,522
plus Change in inventories   -308 53 -256 33 449
plus Other movements in non-financial assets   13 -39 -26 9 26
Total net acquisition of non-financial assets   -625 664 39 267 3,437
Fiscal balance (Net lending/borrowing)(e)   -7,241 -6,901 -14,142 -14,106 -37,129

*As published in the 2016-17 Budget.
(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) Operating result under Australian Accounting Standards.
(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 July 2016
$m
ACTUAL
as at
31 August 2016
$m
BUDGET ESTIMATE*
as at
30 June 2017
$m
Assets      
Financial assets      
Cash and deposits 3,273 2,955 4,874
Advances paid 52,849 52,929 62,637
Investments, loans and placements 149,752 150,330 173,479
Other receivables 52,365 47,650 48,646
Equity investments      
Investments in other public sector entities 44,788 46,497 50,846
Equity accounted investments 365 364 354
Investments - shares 41,175 42,071 42,558
Total financial assets 344,566 342,797 383,395
Non-financial assets      
Land 10,568 10,590 9,674
Buildings 25,496 25,421 26,391
Plant, equipment and infrastructure 62,966 63,584 62,239
Inventories 8,053 8,008 8,184
Intangibles 7,318 7,261 7,414
Investment property 209 210 200
Biological assets 48 46 44
Heritage and cultural assets 11,441 11,519 11,658
Assets held for sale 243 214 147
Other non-financial assets 200 162 288
Total non-financial assets 126,542 127,017 126,238
Total assets 471,108 469,814 509,633
Liabilities      
Interest bearing liabilities      
Deposits held 217 216 218
Government securities 495,756 500,478 549,537
Loans 16,078 16,094 15,739
Other borrowing 1,683 1,680 1,458
Total interest bearing liabilities 513,734 518,469 566,952
Provisions and payables      
Superannuation liability(a) 314,908 315,475 175,661
Other employee liabilities 18,294 18,516 17,332
Suppliers payable 4,289 3,954 6,092
Personal benefits provisions and payable 12,021 11,734 13,542
Subsidies provisions and payable 4,954 4,827 5,216
Grants provisions and payable 11,424 11,350 10,876
Other provisions and payables 17,951 17,155 14,891
Total provisions and payables 383,841 383,012 243,610
Total liabilities 897,575 901,481 810,561
Net worth(b) -426,467 -431,666 -300,929
Net financial worth(c) -553,008 -558,684 -427,167
Net financial liabilities(d) 597,797 605,181 478,013
Net debt(e) 307,861 312,255 325,962

*As published in the 2016-17 Budget.
(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 (a)

 ACTUAL
2016-2017
July
$m
ACTUAL
2016-2017
August
$m
ACTUAL
2016-2017
YTD August
$m
Budget
Profile
2016-2017
YTD August
$m
BUDGET
ESTIMATE*
2016-2017
Full Year
$m
Cash receipts from operating activities          
Taxes received 29,480 27,742 57,222 56,978 382,769
Receipts from sales of goods and services 744 876 1,620 1,504 9,176
Interest receipts 270 285 555 541 3,262
Dividends and income tax equivalents 214 3,442 3,656 3,238 5,833
Other receipts 908 601 1,509 1,427 7,879
Total operating receipts 31,616 32,946 64,563 63,687 408,919
Cash payments for operating activities          
Payments for employees -2,290 -2,376 -4,666 -4,627 -28,259
Payments for goods and services -8,965 -7,463 -16,428 -15,945 -87,036
Grants and subsidies paid -14,841 -12,031 -26,872 -26,814 -161,853
Interest paid -1,177 -449 -1,625 -1,826 -15,903
Personal benefit payments -13,105 -11,549 -24,654 -24,940 -135,637
Other payments 286 -485 -199 -487 -5,141
Total operating payments -40,092 -34,353 -74,445 -74,639 -433,829
Net cash flows from operating activities -8,475 -1,407 -9,882 -10,951 -24,909
Cash flows from investments in
non-financial assets
         
Sales of non-financial assets 15 61 76 227 2,365
Purchases of non-financial assets -431 -584 -1,015 -1,547 -11,216
Net cash flows from investments in
non-financial assets
-416 -523 -939 -1,319 -8,851
Net cash flows from investments in
financial assets for policy purposes
-1,043 -1,016 -2,059 -2,847 -19,678
Cash flows from investments in
financial assets for liquidity purposes
         
Increase in investments 985 -1,034 -49 -4,219 -19,579
Net cash flows from investments in
financial assets for liquidity purposes
985 -1,034 -49 -4,219 -19,579
Cash flows from financing activities          
Borrowing (net) 9,087 3,782 12,869 16,359 77,572
Other financing (net) -367 -119 -486 -520 -3,193
Net cash flows from financing activities 8,720 3,663 12,383 15,840 74,379
Net increase/(decrease) in cash held -229 -318 -547 -3,497 1,362
Net cash flows from operating activities
and investments in non-financial assets
(Surplus(+)/deficit(-))
-8,891 -1,930 -10,821 -12,271 -33,760
Finance leases and similar arrangements(b) 0 -6 -6 0 0
GFS cash surplus(+)/deficit(-) -8,891 -1,936 -10,827 -12,271 -33,760
less Net Future Fund earnings 229 285 514 408 3,321
Equals underlying cash balance(c) -9,120 -2,221 -11,341 -12,679 -37,081
plus Net cash flows from investments in
financial assets for policy purposes
-1,043 -1,016 -2,059 -2,847 -19,678
plus Net Future Fund earnings 229 285 514 408 3,321
Equals headline cash balance -9,934 -2,952 -12,887 -15,118 -53,438

*As published in the 2016-17 Budget.
(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
2016-2017
July
$m
ACTUAL
2016-2017
August
$m
ACTUAL
2016-2017
YTD August
$m
Budget
Profile
2016-2017
YTD August
$m
BUDGET
ESTIMATE*
2016-2017
Full Year
$m
Individuals and other withholding taxes          
Gross income tax withholding 13,226 16,362 29,589 29,714 183,380
Gross other individuals 5,661 2,356 8,017 8,401 47,300
less Refunds 5,094 5,975 11,070 11,096 29,350
           
Total individuals and other withholding taxation 13,793 12,743 26,536 27,018 201,330
Fringe benefits tax 897 47 944 993 4,760
Company tax 5,591 4,950 10,540 10,489 70,100
Superannuation funds 1,010 667 1,678 1,540 7,510
Resource rent taxes 31 214 245 239 850
Total income taxation revenue 21,321 18,621 39,943 40,279 284,550

*As published in the 2016-17 Budget.

Note 2: Indirect Tax

 ACTUAL
2016-2017
July
$m
ACTUAL
2016-2017
August
$m
ACTUAL
2016-2017
YTD August
$m
Budget
Profile
2016-2017
YTD August
$m
BUDGET
ESTIMATE*
2016-2017
Full Year
$m
Goods and services tax 5,795 5,782 11,577 11,707 63,340
Wine equalisation tax 67 57 124 131 910
Luxury car tax 58 51 109 98 570
Excise duty 1,596 2,013 3,609 3,643 21,785
Customs duty 978 1,558 2,536 2,512 14,010
Other indirect tax 504 397 901 948 6,118
Total indirect taxation revenue 8,997 9,858 18,855 19,039 106,733
*As published in the 2016-17 Budget.          

*As published in the 2016-17 Budget.

Note 3: Total expenses by function

 ACTUAL
2016-2017
July
$m
ACTUAL
2016-2017
August
$m
ACTUAL
2016-2017
YTD August
$m
BUDGET
ESTIMATE*
2016-2017
Full Year
$m
Expenses by function        
General public services 1,859 2,099 3,958 22,659
Defence 2,327 2,274 4,600 27,155
Public order and safety 470 390 860 4,915
Education 4,506 1,787 6,293 33,669
Health 6,496 6,411 12,907 71,413
Social security and welfare 14,928 13,226 28,154 158,612
Housing and community amenities 217 314 531 5,282
Recreation and culture 291 251 542 3,401
Fuel and energy 569 544 1,113 6,687
Agriculture, Forestry and Fishing 106 179 285 3,122
Mining, manufacturing and construction 278 274 552 3,545
Transport and communication(a) 67 295 362 11,131
Other economic affairs 761 779 1,540 9,832
Other purposes        
Public debt interest 1,261 1,263 2,524 16,644
Nominal superannuation interest 727 812 1,538 9,959
General purpose inter-government transactions 5,153 5,680 10,833 63,553
Natural disaster relief 0 0 0 27
Contingency reserve 0 0 0 -1,055
Total expenses 40,015 36,576 76,591 450,553

*As published in the 2016-17 Budget.

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. 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/quarterly-data-june-2016/.

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-data.

Last updated: 21 October 2016