Australian Government General Government Sector Monthly Financial Statements October 2016

Senator the Hon Mathias Cormann
Minister for Finance

MC 56/16
Friday, 25 November 2016

Australian Government General Government Sector Monthly Financial Statements October 2016

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KEY POINTS

  • The underlying cash balance for the 2016-17 financial year to 31 October 2016 was a deficit of $24,548 million.
  • The fiscal balance for the 2016-17 financial year to 31 October 2016 was a deficit of $23,919 million.
AGGREGATESACTUAL
2016-2017
October
$m
ACTUAL
2016-2017
YTD October
$m
Budget Profile
2016-2017
YTD October
$m
BUDGET ESTIMATE*
2016-2017
Full Year
$m
Revenue 38,090 125,503 125,849 416,862
Expenses 36,971 149,053 152,542 450,553
Net operating balance 1,120 -23,550 -26,693 -33,691
Net capital investment 609 369 1,228 3,437
Fiscal balance 510 -23,919 -27,921 -37,129
Receipts(a) 33,827 124,280 124,222 411,284
less Payments(b) 37,114 147,471 151,696 445,045
less Net Future Fund earnings 402 1,357 967 3,321
Underlying cash balance(c) -3,690 -24,548 -28,441 -37,081
Headline cash balance -4,423 -27,396 -33,196 -53,438
Total assets   475,603   509,633
Total liabilities   910,350   810,561
Net worth(d)   -434,748   -300,929
Net debt(e)   313,971   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 October 2016 was a deficit of $24,548 million, which is $3,893 million lower than the 2016-17 Budget profile deficit of $28,441 million.

  • Receipts
    Total receipts were $58 million higher than the 2016-17 Budget profile.
  • Payments
    Total payments were $4,225 million lower than the 2016-17 Budget profile.

Fiscal Balance

The fiscal balance for the year to 31 October 2016 was a deficit of $23,919 million, which is $4,002 million lower than the 2016-17 Budget profile deficit of $27,921 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 31 October 2016:

  • Net worth is negative $434,748 million;
  • Net debt is $313,971 million; and
  • Net financial liabilities are $608,264 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
October
$m
ACTUAL
2016-2017
YTD October
$m
Budget Profile
2016-2017
YTD October
$m
BUDGET ESTIMATE*
2016-2017
Full Year
$m
Revenue          
Taxation revenue 1, 2 35,850 117,002 117,641 391,283
Sales of goods and services   768 2,765 2,915 9,249
Interest income   289 1,227 1,391 4,280
Dividend income   324 1,101 1,156 3,242
Other   859 3,408 2,747 8,807
Total revenue   38,090 125,503 125,849 416,862
Expenses          
Gross operating expenses          
Wages and salaries(a)   1,530 6,478 6,577 20,071
Superannuation   590 2,402 1,496 4,618
Depreciation and amortisation   480 2,482 2,498 7,522
Supply of goods and services   6,798 28,966 28,837 86,745
Other operating expenses(a)   418 1,940 1,839 5,452
Total gross operating expenses   9,815 42,268 41,248 124,408
Superannuation interest expense   769 3,077 3,319 9,959
Interest expenses   1,420 5,521 5,903 18,725
Current transfers          
Current grants   12,031 44,031 46,558 138,966
Subsidy expenses   1,068 4,316 4,416 13,425
Personal benefits   10,955 46,172 46,981 132,562
Total current transfers   24,054 94,519 97,955 284,953
Capital transfers          
Mutually agreed write-downs   114 472 605 1,845
Other capital grants   798 3,196 3,512 10,663
Total capital transfers   912 3,669 4,117 12,508
Total expenses 3 36,971 149,053 152,542 450,553
Net operating balance   1,120 -23,550 -26,693 -33,691
Other economic flows          
- included in operating result          
Net write-downs of assets (including bad and doubtful debts)   -2,558 -5,619 -2,427 -8,077
Assets recognised for the first time   26 95 143 348
Liabilities recognised for the first time   0 0 0 0
Actuarial revaluations   0 0 0 0
Net foreign exchange gains   310 1,133 8 8
Net swap interest received   17 62 0 0
Market valuation of debt   9,970 9,799 1,118 3,156
Other gains/(losses)   -292 1,445 1,593 4,705
Total other economic flows          
- included in operating result   7,473 6,915 435 140
Operating result (b)   8,592 -16,635 -26,257 -33,552
Non-owner movements in equity          
Revaluation of equity investments(c)   -60 -3 0 -2,880
Actuarial revaluations   0 0 0 -6
Other economic revaluations(d)   181 455 4,810 536
Total other economic flows - included in equity   121 452 4,810 -2,350
Comprehensive result - Total change in net worth   8,713 -16,183 -21,447 -35,902
Net operating balance   1,120 -23,550 -26,693 -33,691
Net acquisition of non-financial assets          
Purchases of non-financial assets   540 2,697 3,737 11,416
less Sales of non-financial assets   18 72 121 932
less Depreciation   480 2,482 2,498 7,522
plus Change in inventories   561 163 86 449
plus Other movements in non-financial assets   5 63 24 26
Total net acquisition of non-financial assets   609 369 1,228 3,437
Fiscal balance (Net lending/borrowing)(e)   510 -23,919 -27,921 -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 October 2016
$m
BUDGET ESTIMATE*
as at
30 June 2017
$m
Assets    
Financial assets    
Cash and deposits 4,154 4,874
Advances paid 53,706 62,637
Investments, loans and placements 152,193 173,479
Other receivables 50,244 48,646
Equity investments    
Investments in other public sector entities 49,496 50,846
Equity accounted investments 288 354
Investments - shares 41,502 42,558
Total financial assets 351,583 383,395
Non-financial assets    
Land 10,604 9,674
Buildings 25,426 26,391
Plant, equipment and infrastructure 60,163 62,239
Inventories 8,509 8,184
Intangibles 7,248 7,414
Investment property 127 200
Biological assets 43 44
Heritage and cultural assets 11,520 11,658
Assets held for sale 215 147
Other non-financial assets 166 288
Total non-financial assets 124,020 126,238
Total assets 475,603 509,633
Liabilities    
Interest bearing liabilities    
Deposits held 218 218
Government securities 506,028 549,537
Loans 16,092 15,739
Other borrowing 1,687 1,458
Total interest bearing liabilities 524,024 566,952
Provisions and payables    
Superannuation liability(a) 316,987 175,661
Other employee liabilities 18,851 17,332
Suppliers payable 5,170 6,092
Personal benefits provisions and payable 12,110 13,542
Subsidies provisions and payable 4,872 5,216
Grants provisions and payable 11,334 10,876
Other provisions and payables 17,001 14,891
Total provisions and payables 386,326 243,610
Total liabilities 910,350 810,561
Net worth(b) -434,748 -300,929
Net financial worth(c) -558,767 -427,167
Net financial liabilities(d) 608,264 478,013
Net debt(e) 313,971 325,962

*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
October
$m
ACTUAL
2016-2017
YTD October
$m
Budget Profile
2016-2017
YTD October
$m
BUDGET ESTIMATE*
2016-2017
Full Year
$m
Cash receipts from operating activities        
Taxes received 30,919 112,188 113,342 382,769
Receipts from sales of goods and services 634 2,790 2,961 9,176
Interest receipts 260 1,121 1,067 3,262
Dividends and income tax equivalents 401 4,455 3,764 5,833
Other receipts 1,607 3,631 2,680 7,879
Total operating receipts 33,821 124,185 123,814 408,919
Cash payments for operating activities        
Payments for employees -2,163 -8,717 -9,161 -28,259
Payments for goods and services -6,439 -30,407 -29,707 -87,036
Grants and subsidies paid -13,731 -51,930 -53,809 -161,853
Interest paid -3,864 -6,058 -6,258 -15,903
Personal benefit payments -9,780 -46,511 -47,646 -135,637
Other payments -498 -1,295 -1,397 -5,141
Total operating payments -36,475 -144,918 -147,979 -433,829
Net cash flows from operating activities -2,654 -20,733 -24,165 -24,909
Cash flows from investments in
non-financial assets
       
Sales of non-financial assets 6 95 408 2,365
Purchases of non-financial assets -639 -2,547 -3,717 -11,216
Net cash flows from investments in
non-financial assets
-634 -2,452 -3,309 -8,851
Net cash flows from investments in
financial assets for policy purposes
-1,136 -4,205 -5,723 -19,678
Cash flows from investments in
financial assets for liquidity purposes
       
Increase in investments -5,376 -5,318 -6,339 -19,579
Net cash flows from investments in
financial assets for liquidity purposes
-5,376 -5,318 -6,339 -19,579
Cash flows from financing activities        
Borrowing (net) 11,835 34,392 32,825 77,572
Other financing (net) -695 -1,168 -1,242 -3,193
Net cash flows from financing activities 11,140 33,224 31,583 74,379
Net increase/(decrease) in cash held 1,341 516 -7,953 1,362
Net cash flows from operating activities
and investments in non-financial assets
(Surplus(+)/deficit(-))
-3,288 -23,185 -27,474 -33,760
Finance leases and similar arrangements(b) 0 -6 0 0
GFS cash surplus(+)/deficit(-) -3,288 -23,191 -27,474 -33,760
less Net Future Fund earnings 402 1,357 967 3,321
Equals underlying cash balance(c) -3,690 -24,548 -28,441 -37,081
plus Net cash flows from investments in
financial assets for policy purposes
-1,136 -4,205 -5,723 -19,678
plus Net Future Fund earnings 402 1,357 967 3,321
Equals headline cash balance -4,423 -27,396 -33,196 -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
October
$m
ACTUAL
2016-2017
YTD October
$m
Budget Profile
2016-2017
YTD October
$m
BUDGET ESTIMATE*
2016-2017
Full Year
$m
Individuals and other withholding taxes        
Gross income tax withholding 13,861 58,803 59,909 183,380
Gross other individuals 6,158 15,318 14,668 47,300
less Refunds 2,971 17,732 17,984 29,350
Total individuals and other withholding taxation 17,047 56,389 56,593 201,330
Fringe benefits tax 993 1,928 2,073 4,760
Company tax 6,671 20,528 19,987 70,100
Superannuation funds 972 2,947 2,766 7,510
Resource rent taxes 256 505 441 850
Total income taxation revenue 25,940 82,296 81,860 284,550

*As published in the 2016-17 Budget.

 

Note 2: Indirect Tax

 ACTUAL
2016-2017
October
$m
ACTUAL
2016-2017
YTD October
$m
Budget Profile
2016-2017
YTD October
$m
BUDGET ESTIMATE*
2016-2017
Full Year
$m
Goods and services tax 6,541 21,022 21,451 63,340
Wine equalisation tax 57 239 249 910
Luxury car tax 53 219 192 570
Excise duty 2,052 7,292 7,489 21,785
Customs duty 821 4,031 4,195 14,010
Other indirect tax 386 1,903 2,204 6,118
Total indirect taxation revenue 9,910 34,706 35,781 106,733

*As published in the 2016-17 Budget.

 

Note 3: Total expenses by function

 ACTUAL
2016-2017
October
$m
ACTUAL
2016-2017
YTD October
$m
BUDGET ESTIMATE*
2016-2017
Full Year
$m
Expenses by function      
General public services 1,453 7,236 22,659
Defence 2,044 9,150 27,155
Public order and safety 367 1,579 4,915
Education 4,331 12,739 33,669
Health 5,940 24,739 71,413
Social security and welfare 13,001 54,121 158,612
Housing and community amenities 409 1,349 5,282
Recreation and culture 293 1,029 3,401
Fuel and energy 563 2,217 6,687
Agriculture, Forestry and Fishing 171 629 3,122
Mining, manufacturing and construction 281 1,160 3,545
Transport and communication(a) 212 890 11,131
Other economic affairs 717 3,029 9,832
Other purposes      
Public debt interest 1,310 5,066 16,644
Nominal superannuation interest 769 3,077 9,959
General purpose inter-government transactions 5,110 21,045 63,553
Natural disaster relief 0 0 27
Contingency reserve 0 0 -1,055
Total expenses 36,971 149,053 450,553

*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-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: 25 November 2016