Australian Government General Government Sector Monthly Financial Statements September 2016

Senator the Hon Mathias Cormann
Minister for Finance

MC 51/16
Friday, 21 October 2016

Australian Government General Government Sector Monthly Financial Statements September 2016

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KEY POINTS

  • The underlying cash balance for the 2016-17 financial year to 30 September 2016 was a deficit of $20,858 million.
  • The fiscal balance for the 2016-17 financial year to 30 September 2016 was a deficit of
    $24,429 million.
AGGREGATESACTUAL
2016-2017
September
$m
ACTUAL
2016-2017
YTD September
$m
Budget Profile
2016-2017
YTD September
$m
BUDGET ESTIMATE*
2016-2017
Full Year
$m
Revenue 24,924 87,413 89,138 416,862
Expenses 35,491 112,082 112,742 450,553
Net operating balance -10,567 -24,670 -23,605 -33,691
Net capital investment -280 -240 1,004 3,437
Fiscal balance -10,288 -24,429 -24,609 -37,129
Receipts(a) 25,815 90,453 89,658 411,284
less Payments(b) 34,891 110,357 111,107 445,045
less Net Future Fund earnings 441 955 1,276 3,321
Underlying cash balance(c) -9,517 -20,858 -22,725 -37,081
Headline cash balance -10,086 -22,972 -25,849 -53,438
Total assets   466,876   509,633
Total liabilities   910,337   810,561
Net worth(d)   -443,461   -300,929
Net debt(e)   320,735   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 30 September 2016 was a deficit of $20,858 million, which is $1,867 million lower than the 2016-17 Budget profile deficit of $22,725 million.

  • Receipts
    Total receipts were $796 million higher than the 2016-17 Budget profile.
  • Payments
    Total payments were $750 million lower than the 2016-17 Budget profile.

Fiscal Balance

The fiscal balance for the year to 30 September 2016 was a deficit of $24,429 million, which is broadly consistent with the 2016-17 Budget profile deficit of $24,609 million. The difference of $180 million relates to lower than expected expenses and net capital investment, partially offset by lower than expected revenue.

Assets and Liabilities

As at 30 September 2016:

  • Net worth is negative $443,461 million;
  • Net debt is $320,735 million; and
  • Net financial liabilities are $616,176 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
September
$m
ACTUAL
2016-2017
YTD September
$m
Budget Profile
2016-2017
YTD September
$m
BUDGET ESTIMATE*
2016-2017
Full Year
$m
Revenue          
Taxation revenue 1, 2 22,354 81,152 83,100 391,283
Sales of goods and services   516 1,997 2,109 9,249
Interest income   357 938 1,047 4,280
Dividend income   360 776 867 3,242
Other   1,336 2,549 2,015 8,807
Total revenue   24,924 87,413 89,138 416,862
Expenses          
Gross operating expenses          
Wages and salaries(a)   1,610 4,949 4,988 20,071
Superannuation   614 1,812 1,116 4,618
Depreciation and amortisation   702 2,002 1,874 7,522
Supply of goods and services   7,308 22,168 21,812 86,745
Other operating expenses(a)   540 1,522 1,326 5,452
Total gross operating expenses   10,774 32,453 31,116 124,408
Superannuation interest expense   769 2,307 2,490 9,959
Interest expenses   1,354 4,100 4,379 18,725
Current transfers          
Current grants   9,527 32,000 32,586 138,966
Subsidy expenses   1,117 3,248 3,339 13,425
Personal benefits   11,072 35,217 35,860 132,562
Total current transfers   21,716 70,465 71,785 284,953
Capital transfers          
Mutually agreed write-downs   113 358 437 1,845
Other capital grants   766 2,398 2,535 10,663
Total capital transfers   879 2,757 2,973 12,508
Total expenses 3 35,491 112,082 112,742 450,553
Net operating balance   -10,567 -24,670 -23,605 -33,691
Other economic flows          
- included in operating result          
Net write-downs of assets (including bad and doubtful debts)   -2,296 -3,060 -1,939 -8,077
Assets recognised for the first time   25 69 118 348
Liabilities recognised for the first time   0 0 0 0
Actuarial revaluations   0 0 0 0
Net foreign exchange gains   417 823 8 8
Net swap interest received   20 45 0 0
Market valuation of debt   3,417 -171 833 3,156
Other gains/(losses)   433 1,737 1,219 4,705
Total other economic flows          
- included in operating result   2,016 -558 238 140
Operating result (b)   -8,551 -25,227 -23,366 -33,552
Non-owner movements in equity          
Revaluation of equity investments(c)   13 58 0 -2,880
Actuarial revaluations   0 0 0 -6
Other economic revaluations(d)   -3,257 273 5,432 536
Total other economic flows - included in equity   -3,244 331 5,432 -2,350
Comprehensive result - Total change in net worth   -11,795 -24,896 -17,935 -35,902
Net operating balance   -10,567 -24,670 -23,605 -33,691
Net acquisition of non-financial assets          
Purchases of non-financial assets   492 2,157 2,896 11,416
less Sales of non-financial assets   11 54 103 932
less Depreciation   702 2,002 1,874 7,522
plus Change in inventories   -143 -398 67 449
plus Other movements in non-financial assets   84 58 18 26
Total net acquisition of non-financial assets   -280 -240 1,004 3,437
Fiscal balance (Net lending/borrowing)(e)   -10,288 -24,429 -24,609 -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
30 September 2016
$m
BUDGET ESTIMATE*
as at
30 June 2017
$m
Assets    
Financial assets    
Cash and deposits 2,813 4,874
Advances paid 53,574 62,637
Investments, loans and placements 148,264 173,479
Other receivables 47,738 48,646
Equity investments    
Investments in other public sector entities 48,830 50,846
Equity accounted investments 289 354
Investments - shares 41,483 42,558
Total financial assets 342,991 383,395
Non-financial assets    
Land 10,579 9,674
Buildings 25,427 26,391
Plant, equipment and infrastructure 60,480 62,239
Inventories 8,001 8,184
Intangibles 7,276 7,414
Investment property 160 200
Biological assets 45 44
Heritage and cultural assets 11,531 11,658
Assets held for sale 225 147
Other non-financial assets 161 288
Total non-financial assets 123,885 126,238
Total assets 466,876 509,633
Liabilities    
Interest bearing liabilities    
Deposits held 219 218
Government securities 507,395 549,537
Loans 16,085 15,739
Other borrowing 1,687 1,458
Total interest bearing liabilities 525,386 566,952
Provisions and payables    
Superannuation liability(a) 316,303 175,661
Other employee liabilities 18,865 17,332
Suppliers payable 4,987 6,092
Personal benefits provisions and payable 11,425 13,542
Subsidies provisions and payable 4,809 5,216
Grants provisions and payable 11,367 10,876
Other provisions and payables 17,194 14,891
Total provisions and payables 384,951 243,610
Total liabilities 910,337 810,561
Net worth(b) -443,461 -300,929
Net financial worth(c) -567,346 -427,167
Net financial liabilities(d) 616,176 478,013
Net debt(e) 320,735 325,962

*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
September
$m
ACTUAL
2016-2017
YTD September
$m
Budget Profile
2016-2017
YTD September
$m
BUDGET ESTIMATE*
2016-2017
Full Year
$m
Cash receipts from operating activities        
Taxes received 24,047 81,269 80,883 382,769
Receipts from sales of goods and services 536 2,156 2,179 9,176
Interest receipts 307 861 808 3,262
Dividends and income tax equivalents 398 4,054 3,469 5,833
Other receipts 514 2,023 2,002 7,879
Total operating receipts 25,802 90,364 89,340 408,919
Cash payments for operating activities        
Payments for employees -1,888 -6,554 -6,941 -28,259
Payments for goods and services -7,540 -23,969 -22,807 -87,036
Grants and subsidies paid -11,327 -38,199 -38,322 -161,853
Interest paid -568 -2,194 -2,445 -15,903
Personal benefit payments -12,076 -36,731 -36,796 -135,637
Other payments -599 -798 -914 -5,141
Total operating payments -33,998 -108,443 -108,225 -433,829
Net cash flows from operating activities -8,197 -18,079 -18,885 -24,909
Cash flows from investments in
non-financial assets
       
Sales of non-financial assets 13 89 318 2,365
Purchases of non-financial assets -893 -1,908 -2,882 -11,216
Net cash flows from investments in
non-financial assets
-880 -1,818 -2,564 -8,851
Net cash flows from investments in
financial assets for policy purposes
-1,009 -3,069 -4,400 -19,678
Cash flows from investments in
financial assets for liquidity purposes
       
Increase in investments 107 58 -1,192 -19,579
Net cash flows from investments in
financial assets for liquidity purposes
107 58 -1,192 -19,579
Cash flows from financing activities        
Borrowing (net) 9,688 22,557 24,590 77,572
Other financing (net) 13 -473 -581 -3,193
Net cash flows from financing activities 9,701 22,084 24,008 74,379
Net increase/(decrease) in cash held -278 -825 -3,032 1,362
Net cash flows from operating activities
and investments in non-financial assets
(Surplus(+)/deficit(-))
-9,076 -19,897 -21,449 -33,760
Finance leases and similar arrangements(b) 0 -6 0 0
GFS cash surplus(+)/deficit(-) -9,076 -19,904 -21,449 -33,760
less Net Future Fund earnings 441 955 1,276 3,321
Equals underlying cash balance(c) -9,517 -20,858 -22,725 -37,081
plus Net cash flows from investments in
financial assets for policy purposes
-1,009 -3,069 -4,400 -19,678
plus Net Future Fund earnings 441 955 1,276 3,321
Equals headline cash balance -10,086 -22,972 -25,849 -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
September
$m
ACTUAL
2016-2017
YTD September
$m
Budget Profile
2016-2017
YTD September
$m
BUDGET ESTIMATE*
2016-2017
Full Year
$m
Individuals and other withholding taxes        
Gross income tax withholding 15,354 44,942 45,764 183,380
Gross other individuals 1,144 9,160 9,569 47,300
less Refunds 3,691 14,761 15,090 29,350
Total individuals and other withholding taxation 12,806 39,342 40,243 201,330
Fringe benefits tax -9 935 979 4,760
Company tax 3,316 13,856 14,581 70,100
Superannuation funds 297 1,975 1,922 7,510
Resource rent taxes 5 250 186 850
Total income taxation revenue 16,414 56,357 57,912 284,550

*As published in the 2016-17 Budget.

Note 2: Indirect Tax

 ACTUAL
2016-2017
September
$m
ACTUAL
2016-2017
YTD September
$m
Budget Profile
2016-2017
YTD September
$m
BUDGET ESTIMATE*
2016-2017
Full Year
$m
Goods and services tax 2,904 14,481 14,765 63,340
Wine equalisation tax 58 182 198 910
Luxury car tax 56 165 143 570
Excise duty 1,631 5,240 5,330 21,785
Customs duty 674 3,210 3,372 14,010
Other indirect tax 616 1,517 1,380 6,118
Total indirect taxation revenue 5,940 24,795 25,188 106,733

*As published in the 2016-17 Budget.

Note 3: Total expenses by function

 ACTUAL
2016-2017
September
$m
ACTUAL
2016-2017
YTD September
$m
BUDGET ESTIMATE*
2016-2017
Full Year
$m
Expenses by function      
General public services 1,825 5,784 22,659
Defence 2,506 7,106 27,155
Public order and safety 351 1,212 4,915
Education 2,115 8,408 33,669
Health 5,891 18,798 71,413
Social security and welfare 12,966 41,120 158,612
Housing and community amenities 410 940 5,282
Recreation and culture 194 735 3,401
Fuel and energy 540 1,653 6,687
Agriculture, Forestry and Fishing 173 458 3,122
Mining, manufacturing and construction 327 879 3,545
Transport and communication(a) 316 678 11,131
Other economic affairs 772 2,312 9,832
Other purposes      
Public debt interest 1,233 3,757 16,644
Nominal superannuation interest 769 2,307 9,959
General purpose inter-government transactions 5,103 15,936 63,553
Natural disaster relief 0 0 27
Contingency reserve 0 0 -1,055
Total expenses 35,491 112,082 450,553

*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: 21 October 2016