Australian Government General Government Sector Monthly Financial Statements November 2016

Senator the Hon Mathias Cormann
Minister for Finance

MC 70/16
Thursday, 22 December 2016

Australian Government General Government Sector Monthly Financial Statements November 2016

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KEY POINTS

  • The underlying cash balance for the 2016-17 financial year to 30 November 2016 was a deficit of $27,234 million.
  • The fiscal balance for the 2016-17 financial year to 30 November 2016 was a deficit of $26,146 million.
AGGREGATESACTUAL
2016-2017
November
$m
ACTUAL
2016-2017
YTD November
$m
Budget Profile
2016-2017
YTD November
$m
BUDGET ESTIMATE*
2016-2017
Full Year
$m
Revenue 33,699 159,202 160,033 416,862
Expenses 35,861 184,913 188,272 450,553
Net operating balance -2,162 -25,712 -28,238 -33,691
Net capital investment 65 434 1,439 3,437
Fiscal balance -2,227 -26,146 -29,677 -37,129
Receipts(a) 33,777 158,057 157,830 411,284
less Payments(b) 36,257 183,728 186,901 445,045
less Net Future Fund earnings 205 1,562 713 3,321
Underlying cash balance(c) -2,686 -27,234 -29,784 -37,081
Headline cash balance -3,503 -30,899 -37,355 -53,438
Total assets   493,893   509,633
Total liabilities   908,840   810,561
Net worth(d)   -414,947   -300,929
Net debt(e)   305,099   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.

Comparators for the November 2016 monthly financial statements are based on the 2016-17 Budget published in May 2016. From the December 2016 monthly financial statements, the comparators will be based on updated estimates from the 2016-17 Mid-Year Economic and Fiscal Outlook.

FISCAL OUTCOMES

Underlying Cash Balance

The underlying cash balance for the year to 30 November 2016 was a deficit of $27,234 million, which is $2,550 million lower than the 2016-17 Budget profile deficit of $29,784 million.

  • Receipts
    Total receipts were $227 million higher than the 2016-17 Budget profile.
  • Payments
    Total payments were $3,173 million lower than the 2016-17 Budget profile.

Fiscal Balance

The fiscal balance for the year to 30 November 2016 was a deficit of $26,146 million, which is $3,531 million lower than the 2016-17 Budget profile deficit of $29,677 million. The difference results from lower than expected expenses and net capital investment, partially offset by lower than expected revenue.

Assets and Liabilities

As at 30 November 2016:

  • Net worth is negative $414,947 million;
  • Net debt is $305,099 million; and
  • Net financial liabilities are $599,938 million.
Senator the Hon Mathias Cormann
Minister for Finance
Rosemary Huxtable
Acting Secretary
Department of Finance
Media Contact  
Karen Wu      0428 350 139

 

Australian Government general government sector operating statement

 NoteACTUAL
2016-2017
November
$m
ACTUAL
2016-2017
YTD November
$m
Budget Profile
2016-2017
YTD November
$m
BUDGET ESTIMATE*
2016-2017
Full Year
$m
Revenue          
Taxation revenue 1, 2 31,626 148,628 149,713 391,283
Sales of goods and services   739 3,504 3,611 9,249
Interest income   304 1,531 1,749 4,280
Dividend income   284 1,385 1,416 3,242
Other   745 4,153 3,545 8,807
Total revenue   33,699 159,202 160,033 416,862
Expenses          
Gross operating expenses          
Wages and salaries(a)   1,639 8,118 8,206 20,071
Superannuation   627 3,028 1,880 4,618
Depreciation and amortisation   735 3,217 3,124 7,522
Supply of goods and services   7,432 36,398 35,966 86,745
Other operating expenses(a)   564 2,505 2,245 5,452
Total gross operating expenses   10,998 53,266 51,421 124,408
Superannuation interest expense   769 3,846 4,150 9,959
Interest expenses   1,403 6,924 7,402 18,725
Current transfers          
Current grants   12,439 56,470 56,717 138,966
Subsidy expenses   1,039 5,355 5,485 13,425
Personal benefits   10,652 56,824 57,877 132,562
Total current transfers   24,129 118,648 120,079 284,953
Capital transfers          
Mutually agreed write-downs   151 623 770 1,845
Other capital grants   -1,589 1,607 4,450 10,663
Total capital transfers   -1,438 2,230 5,220 12,508
Total expenses 3 35,861 184,913 188,272 450,553
Net operating balance   -2,162 -25,712 -28,238 -33,691
Other economic flows          
- included in operating result          
Net write-downs of assets (including bad and doubtful debts)   1,570 -4,049 -3,009 -8,077
Assets recognised for the first time   25 120 169 348
Liabilities recognised for the first time   0 0 0 0
Actuarial revaluations   0 0 0 0
Net foreign exchange gains   -688 445 8 8
Net swap interest received   3 64 0 0
Market valuation of debt   10,861 20,660 1,397 3,156
Other gains/(losses)   -454 991 2,017 4,705
Total other economic flows          
- included in operating result   11,318 18,233 582 140
Operating result (b)   9,156 -7,479 -27,656 -33,552
Non-owner movements in equity          
Revaluation of equity investments(c)   0 -2 0 -2,880
Actuarial revaluations   0 0 0 -6
Other economic revaluations(d)   10,644 11,099 5,704 536
Total other economic flows - included in equity   10,645 11,097 5,704 -2,350
Comprehensive result - Total change in net worth   19,801 3,618 -21,952 -35,902
Net operating balance   -2,162 -25,712 -28,238 -33,691
Net acquisition of non-financial assets          
Purchases of non-financial assets   1,036 3,733 4,572 11,416
less Sales of non-financial assets   11 83 143 932
less Depreciation   735 3,217 3,124 7,522
plus Change in inventories   -224 -62 110 449
plus Other movements in non-financial assets   0 63 24 26
Total net acquisition of non-financial assets   65 434 1,439 3,437
Fiscal balance (Net lending/borrowing)(e)   -2,227 -26,146 -29,677 -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. For November 2016 this primarily relates to Specialist Military Equipment assets - refer to footnote (f) in the balance sheet.
(e) The term fiscal balance is not used by the ABS.

Australian Government general government sector balance sheet

 ACTUAL
as at
30 November 2016
$m
BUDGET ESTIMATE*
as at
30 June 2017
$m
Assets    
Financial assets    
Cash and deposits 4,244 4,874
Advances paid 54,029 62,637
Investments, loans and placements 159,683 173,479
Other receivables 50,027 48,646
Equity investments    
Investments in other public sector entities 50,078 50,846
Equity accounted investments -253 354
Investments - shares 41,172 42,558
Total financial assets 358,980 383,395
Non-financial assets    
Land 10,605 9,674
Buildings 25,465 26,391
Plant, equipment and infrastructure 71,295 62,239
Inventories 8,232 8,184
Intangibles 7,256 7,414
Investment property 134 200
Biological assets 42 44
Heritage and cultural assets 11,517 11,658
Assets held for sale 200 147
Other non-financial assets 166 288
Total non-financial assets 134,913 126,238
Total assets 493,893 509,633
Liabilities    
Interest bearing liabilities    
Deposits held 221 218
Government securities 504,917 549,537
Loans 16,234 15,739
Other borrowing 1,683 1,458
Total interest bearing liabilities 523,055 566,952
Provisions and payables    
Superannuation liability(a) 317,758 175,661
Other employee liabilities 18,689 17,332
Suppliers payable 4,281 6,092
Personal benefits provisions and payable 11,964 13,542
Subsidies provisions and payable 4,773 5,216
Grants provisions and payable 11,219 10,876
Other provisions and payables 17,102 14,891
Total provisions and payables 385,785 243,610
Total liabilities 908,840 810,561
Net worth(b) -414,947 -300,929
Net financial worth(c) -549,860 -427,167
Net financial liabilities(d) 599,938 478,013
Net debt(e) 305,099 325,962

*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.
(f) Consistent with the 2015-16 Consolidated Financial Statements and the 2016-17 Mid-Year Fiscal and Economic Outlook (MYEFO), Specialist Military Equipment assets are measured on a fair value basis for actual results. The 2015-16 Budget estimate included these assets at cost, pending finalisation of fair valuation. The 2016-17 MYEFO estimates, released on 19 December 2016, will be used as the comparator from December 2016.

Australian Government general government sector cash flow statement (a)

 ACTUAL
2016-2017
November
$m
ACTUAL
2016-2017
YTD November
$m
Budget Profile
2016-2017
YTD November
$m
BUDGET ESTIMATE*
2016-2017
Full Year
$m
Cash receipts from operating activities        
Taxes received 32,211 144,399 144,947 382,769
Receipts from sales of goods and services 745 3,534 3,732 9,176
Interest receipts 204 1,325 1,338 3,262
Dividends and income tax equivalents 211 4,665 4,022 5,833
Other receipts 402 4,033 3,289 7,879
Total operating receipts 33,772 157,957 157,329 408,919
Cash payments for operating activities        
Payments for employees -2,512 -11,230 -11,415 -28,259
Payments for goods and services -6,759 -37,166 -36,573 -87,036
Grants and subsidies paid -11,697 -63,626 -65,932 -161,853
Interest paid -1,246 -7,304 -7,351 -15,903
Personal benefit payments -12,191 -58,702 -59,324 -135,637
Other payments -1,044 -2,339 -1,763 -5,141
Total operating payments -35,448 -180,367 -182,359 -433,829
Net cash flows from operating activities -1,676 -22,410 -25,031 -24,909
Cash flows from investments in
non-financial assets
       
Sales of non-financial assets 5 99 501 2,365
Purchases of non-financial assets -807 -3,354 -4,542 -11,216
Net cash flows from investments in
non-financial assets
-802 -3,254 -4,041 -8,851
Net cash flows from investments in
financial assets for policy purposes
-1,023 -5,227 -8,284 -19,678
Cash flows from investments in
financial assets for liquidity purposes
       
Increase in investments -6,092 -11,410 -7,962 -19,579
Net cash flows from investments in
financial assets for liquidity purposes
-6,092 -11,410 -7,962 -19,579
Cash flows from financing activities        
Borrowing (net) 9,924 44,316 41,057 77,572
Other financing (net) -241 -1,409 -1,495 -3,193
Net cash flows from financing activities 9,683 42,908 39,562 74,379
Net increase/(decrease) in cash held 90 607 -5,755 1,362
Net cash flows from operating activities
and investments in non-financial assets
(Surplus(+)/deficit(-))
-2,479 -25,664 -29,071 -33,760
Finance leases and similar arrangements(b) -2 -8 0 0
GFS cash surplus(+)/deficit(-) -2,480 -25,672 -29,071 -33,760
less Net Future Fund earnings 205 1,562 713 3,321
Equals underlying cash balance(c) -2,686 -27,234 -29,784 -37,081
plus Net cash flows from investments in
financial assets for policy purposes
-1,023 -5,227 -8,284 -19,678
plus Net Future Fund earnings 205 1,562 713 3,321
Equals headline cash balance -3,503 -30,899 -37,355 -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
November
$m
ACTUAL
2016-2017
YTD November
$m
Budget Profile
2016-2017
YTD November
$m
BUDGET ESTIMATE*
2016-2017
Full Year
$m
Individuals and other withholding taxes        
Gross income tax withholding 15,726 74,529 75,553 183,380
Gross other individuals 1,971 17,290 17,418 47,300
less Refunds 2,405 20,137 20,607 29,350
Total individuals and other withholding taxation 15,292 71,681 72,363 201,330
Fringe benefits tax 42 1,970 2,151 4,760
Company tax 5,251 25,779 25,729 70,100
Superannuation funds 984 3,931 3,393 7,510
Resource rent taxes 2 507 441 850
Total income taxation revenue 21,571 103,868 104,078 284,550

*As published in the 2016-17 Budget.

 

Note 2: Indirect Tax

 ACTUAL
2016-2017
November
$m
ACTUAL
2016-2017
YTD November
$m
Budget Profile
2016-2017
YTD November
$m
BUDGET ESTIMATE*
2016-2017
Full Year
$m
Goods and services tax 6,386 27,408 27,911 63,340
Wine equalisation tax 76 314 340 910
Luxury car tax 55 274 236 570
Excise duty 1,809 9,101 9,236 21,785
Customs duty 1,010 5,040 5,259 14,010
Other indirect tax 720 2,623 2,653 6,118
Total indirect taxation revenue 10,055 44,760 45,635 106,733

*As published in the 2016-17 Budget.

 

Note 3: Total expenses by function

 ACTUAL
2016-2017
November
$m
ACTUAL
2016-2017
YTD November
$m
BUDGET ESTIMATE*
2016-2017
Full Year
$m
Expenses by function      
General public services 1,614 8,851 22,659
Defence 2,448 11,598 27,155
Public order and safety 417 1,995 4,915
Education 1,745 14,484 33,669
Health 6,367 31,105 71,413
Social security and welfare 12,495 66,616 158,612
Housing and community amenities 333 1,682 5,282
Recreation and culture 267 1,295 3,401
Fuel and energy 550 2,767 6,687
Agriculture, Forestry and Fishing 199 828 3,122
Mining, manufacturing and construction 280 1,440 3,545
Transport and communication(a) 793 1,683 11,131
Other economic affairs 721 3,750 9,832
Other purposes      
Public debt interest 1,285 6,351 16,644
Nominal superannuation interest 769 3,846 9,959
General purpose inter-government transactions 5,578 26,623 63,553
Natural disaster relief 0 0 27
Contingency reserve 0 0 -1,055
Total expenses 35,861 184,913 450,553

*As published in the 2016-17 Budget.

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-september-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: 22 December 2016