Australian Government General Government Sector Monthly Financial Statements January 2017

Senator the Hon Mathias Cormann
Minister for Finance

MC 5/17
Friday, 24 February 2017

Australian Government General Government Sector Monthly Financial Statements January 2017

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KEY POINTS

  • The underlying cash balance for the 2016-17 financial year to 31 January 2017 was a deficit of $44,029 million.
  • The fiscal balance for the 2016-17 financial year to 31 January 2017 was a deficit of $42,591 million.
AGGREGATESACTUAL
2016-2017
January
$m
ACTUAL
2016-2017
YTD January
$m
MYEFO Profile
2016-2017
YTD January
$m
MYEFO ESTIMATE*
2016-2017
Full Year
$m
Revenue 28,194 221,449 218,335 411,112
Expenses 39,882 262,852 264,082 448,642
Net operating balance -11,688 -41,404 -45,747 -37,530
Net capital investment -240 1,188 1,107 3,953
Fiscal balance -11,449 -42,591 -46,854 -41,482
Receipts(a) 26,541 217,547 215,605 407,350
less Payments(b) 37,208 259,328 259,084 441,063
less Net Future Fund earnings 337 2,248 1,972 2,801
Underlying cash balance(c) -11,004 -44,029 -45,451 -36,514
Headline cash balance -11,881 -49,935 -54,585 -52,505
Total assets   492,323   522,675
Total liabilities   923,237   803,396
Net worth(d)   -430,914   -280,721
Net debt(e)   323,821   317,193

*As published in the 2016-17 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 financial year to 31 January 2017 was a deficit of $44,029 million, which is $1,422 million lower than the 2016-17 Mid-Year Economic and Fiscal Outlook (MYEFO) profile deficit of $45,451 million.

  • Receipts
    Total receipts were $1,942 million higher than the 2016-17 MYEFO profile.
  • Payments
    Total payments were $245 million higher than the 2016-17 MYEFO profile.

Fiscal Balance

The fiscal balance for the year to 31 January 2017 was a deficit of $42,591 million, which is $4,263 million lower than the 2016-17 MYEFO profile deficit of $46,854 million. The difference results from higher than expected revenue and lower than expected expenses.

Assets and Liabilities

As at 31 January 2017:

  • Net worth is negative $430,914 million;
  • Net debt is $323,821 million; and
  • Net financial liabilities are $617,955 million.
Senator the Hon Mathias Cormann
Minister for Finance
Rosemary Huxtable PSM
Secretary
Department of Finance
Media Contact  
Karen Wu      0428 350 139

 

Australian Government general government sector operating statement

 NoteACTUAL
2016-2017
January
$m
ACTUAL
2016-2017
YTD January
$m
MYEFO Profile
2016-2017
YTD January
$m
MYEFO ESTIMATE*
2016-2017
Full Year
$m
Revenue          
Taxation revenue 1, 2 25,981 206,273 204,369 386,345
Sales of goods and services   670 4,909 4,872 8,905
Interest income   267 2,105 2,112 3,771
Dividend income   168 1,908 1,689 2,687
Other   1,108 6,254 5,292 9,404
Total revenue   28,194 221,449 218,335 411,112
Expenses          
Gross operating expenses          
Wages and salaries(a)   1,488 11,082 11,391 20,060
Superannuation   1,943 5,772 5,749 9,720
Depreciation and amortisation   747 4,559 4,601 7,855
Supply of goods and services   5,616 50,338 50,361 87,762
Other operating expenses(a)   451 3,280 3,466 5,572
Total gross operating expenses   10,245 75,030 75,567 130,969
Superannuation interest expense   746 5,338 5,040 8,446
Interest expenses   1,490 9,882 9,888 17,637
Current transfers          
Current grants   15,672 82,865 82,599 135,615
Subsidy expenses   974 7,648 7,622 13,509
Personal benefits   10,105 77,861 78,642 129,749
Total current transfers   26,751 168,374 168,864 278,873
Capital transfers          
Mutually agreed write-downs   79 758 854 1,479
Other capital grants   571 3,469 3,869 11,239
Total capital transfers   650 4,227 4,723 12,718
Total expenses 3 39,882 262,852 264,082 448,642
Net operating balance   -11,688 -41,404 -45,747 -37,530
Other economic flows          
- included in operating result          
Net write-downs of assets (including bad and doubtful debts)   -1,621 -6,098 -4,294 -8,178
Assets recognised for the first time   24 180 215 328
Liabilities recognised for the first time   0 0 0 0
Actuarial revaluations   0 0 0 -8
Net foreign exchange gains   1,149 1,259 1 -187
Net swap interest received   -34 12 45 45
Market valuation of debt   -1,386 21,266 23,700 24,243
Other gains/(losses)   -1,054 1,604 2,206 4,558
Total other economic flows          
- included in operating result   -2,922 18,223 21,873 20,801
Operating result (b)   -14,610 -23,181 -23,874 -16,728
Non-owner movements in equity          
Revaluation of equity investments(c)   -14 -3 0 -4,846
Actuarial revaluations   0 0 1 1,665
Other economic revaluations(d)   -213 10,835 12,130 175
Total other economic flows - included in equity   -227 10,832 12,130 -3,006
Comprehensive result - Total change in net worth   -14,838 -12,349 -11,744 -19,734
Net operating balance   -11,688 -41,404 -45,747 -37,530
Net acquisition of non-financial assets          
Purchases of non-financial assets   493 5,706 5,817 12,284
less Sales of non-financial assets   6 96 132 897
less Depreciation   747 4,559 4,601 7,855
plus Change in inventories   15 66 -2 421
plus Other movements in non-financial assets   6 70 24 0
Total net acquisition of non-financial assets   -240 1,188 1,107 3,953
Fiscal balance (Net lending/borrowing)(e)   -11,449 -42,591 -46,854 -41,482

*As published in the 2016-17 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) 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 January 2017
$m
MYEFO ESTIMATE*
as at
30 June 2017
$m
Assets    
Financial assets    
Cash and deposits 4,316 2,942
Advances paid 54,807 59,987
Investments, loans and placements 153,919 177,400
Other receivables 50,321 47,959
Equity investments    
Investments in other public sector entities 51,563 51,944
Equity accounted investments 287 299
Investments - shares 41,632 43,343
Total financial assets 356,845 383,874
Non-financial assets    
Land 10,623 10,613
Buildings 25,499 25,982
Plant, equipment and infrastructure 71,855 73,645
Inventories 8,248 8,499
Intangibles 7,174 8,097
Investment property 136 164
Biological assets 42 49
Heritage and cultural assets 11,511 11,413
Assets held for sale 217 227
Other non-financial assets 173 112
Total non-financial assets 135,478 138,801
Total assets 492,323 522,675
Liabilities    
Interest bearing liabilities    
Deposits held 246 217
Government securities 518,847 540,184
Loans 16,097 15,455
Other borrowing 1,674 1,666
Total interest bearing liabilities 536,863 557,522
Provisions and payables    
Superannuation liability(a) 320,817 175,047
Other employee liabilities 18,273 18,638
Suppliers payable 3,164 6,358
Personal benefits provisions and payable 13,055 12,677
Subsidies provisions and payable 367 931
Grants provisions and payable 11,254 11,710
Other provisions and payables 19,445 20,513
Total provisions and payables 386,374 245,874
Total liabilities 923,237 803,396
Net worth(b) -430,914 -280,721
Net financial worth(c) -566,392 -419,522
Net financial liabilities(d) 617,955 471,466
Net debt(e) 323,821 317,193

*As published in the 2016-17 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 (a)

 ACTUAL
2016-2017
January
$m
ACTUAL
2016-2017
YTD January
$m
MYEFO Profile
2016-2017
YTD January
$m
MYEFO ESTIMATE*
2016-2017
Full Year
$m
Cash receipts from operating activities        
Taxes received 24,323 199,680 198,451 378,756
Receipts from sales of goods and services 674 4,806 4,570 8,766
Interest receipts 239 1,809 1,713 2,990
Dividends and income tax equivalents 229 5,273 4,973 5,828
Other receipts 1,069 5,883 5,815 8,673
Total operating receipts 26,534 217,452 215,523 405,013
Cash payments for operating activities        
Payments for employees -1,901 -15,425 -16,157 -28,259
Payments for goods and services -5,538 -51,614 -51,136 -87,328
Grants and subsidies paid -18,869 -94,222 -94,003 -159,698
Interest paid -1,081 -8,465 -8,462 -15,377
Personal benefit payments -8,813 -80,641 -80,119 -132,884
Other payments -518 -3,654 -3,263 -5,235
Total operating payments -36,720 -254,021 -253,141 -428,781
Net cash flows from operating activities -10,186 -36,569 -37,619 -23,768
Cash flows from investments in
non-financial assets
       
Sales of non-financial assets 6 96 83 2,337
Purchases of non-financial assets -488 -5,298 -5,940 -12,282
Net cash flows from investments in
non-financial assets
-482 -5,202 -5,858 -9,945
Net cash flows from investments in
financial assets for policy purposes
-1,214 -8,154 -11,106 -18,792
Cash flows from investments in
financial assets for liquidity purposes
       
Increase in investments -1,263 -4,974 -19 -27,724
Net cash flows from investments in
financial assets for liquidity purposes
-1,263 -4,974 -19 -27,724
Cash flows from financing activities        
Borrowing (net) 9,302 57,384 58,494 82,682
Other financing (net) -380 -1,806 -1,813 -3,149
Net cash flows from financing activities 8,922 55,578 56,682 79,533
Net increase/(decrease) in cash held -4,223 678 2,081 -696
Net cash flows from operating activities
and investments in non-financial assets
(Surplus(+)/deficit(-))
-10,668 -41,772 -43,476 -33,713
Finance leases and similar arrangements(b) 0 -9 -3 0
GFS cash surplus(+)/deficit(-) -10,668 -41,781 -43,479 -33,713
less Net Future Fund earnings 337 2,248 1,972 2,801
Equals underlying cash balance(c) -11,004 -44,029 -45,451 -36,514
plus Net cash flows from investments in
financial assets for policy purposes
-1,214 -8,154 -11,106 -18,792
plus Net Future Fund earnings 337 2,248 1,972 2,801
Equals headline cash balance -11,881 -49,935 -54,585 -52,505

*As published in the 2016-17 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
2016-2017
January
$m
ACTUAL
2016-2017
YTD January
$m
MYEFO Profile
2016-2017
YTD January
$m
MYEFO ESTIMATE*
2016-2017
Full Year
$m
Individuals and other withholding taxes 0 0 0 0
Gross income tax withholding 12,442 102,191 102,565 180,680
Gross other individuals 1,652 20,237 20,023 46,700
less Refunds 1,323 22,437 22,790 28,900
Total individuals and other withholding taxation 12,771 99,991 99,797 198,480
Fringe benefits tax 841 2,837 2,857 4,540
Company tax 5,238 38,141 36,821 68,700
Superannuation funds 60 5,406 5,354 8,080
Resource rent taxes 215 738 731 920
Total income taxation revenue 19,125 147,113 145,561 280,720

*As published in the 2016-17 MYEFO.

 

Note 2: Indirect Tax

 ACTUAL
2016-2017
January
$m
ACTUAL
2016-2017
YTD January
$m
MYEFO Profile
2016-2017
YTD January
$m
MYEFO ESTIMATE*
2016-2017
Full Year
$m
Goods and services tax 3,078 33,889 33,878 62,410
Wine equalisation tax 92 499 512 910
Luxury car tax 58 387 370 640
Excise duty 1,953 12,926 12,913 21,410
Customs duty 1,234 7,853 7,712 14,260
Other indirect tax 442 3,606 3,425 5,995
Total indirect taxation revenue 6,856 59,160 58,809 105,625

*As published in the 2016-17 MYEFO.

 

Note 3: Total expenses by function

 ACTUAL
2016-2017
January
$m
ACTUAL
2016-2017
YTD January
$m
MYEFO ESTIMATE*
2016-2017
Full Year
$m
Expenses by function      
General public services 3,747 14,199 26,991
Defence 2,486 16,430 26,816
Public order and safety 460 2,837 5,117
Education 6,236 23,255 33,339
Health 5,355 42,168 72,842
Social security and welfare 11,539 92,427 155,792
Housing and community amenities 383 2,404 5,131
Recreation and culture 308 1,884 3,532
Fuel and energy 577 3,897 6,874
Agriculture, Forestry and Fishing 197 1,243 2,914
Mining, manufacturing and construction 292 2,057 4,052
Transport and communication(a) 455 3,603 10,296
Other economic affairs 714 5,253 9,866
Other purposes      
Public debt interest 1,420 9,152 15,984
Nominal superannuation interest 746 5,338 8,446
General purpose inter-government transactions 4,966 36,705 62,696
Natural disaster relief 0 0 32
Contingency reserve 0 0 -2,077
Total expenses 39,882 262,852 448,642

*As published in the 2016-17 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 PDF 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/quarterly-data-december-2016/ PDF 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-data PDF icon.

Last updated: 23 March 2017