Australian Government General Government Sector Monthly Financial Statements July and August 2017

Senator the Hon Mathias Cormann
Minister for Finance

MC 61/17
Friday, 13 October 2017

Australian Government General Government Sector Monthly Financial Statements July and August 2017

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KEY POINTS

  • The underlying cash balance for the 2017-18 financial year to 31 August 2017 was a deficit of $8,784 million.
  • The fiscal balance for the 2017-18 financial year to 31 August 2017 was a deficit of $6,307 million.

AGGREGATES

ACTUAL
2017-2018
July
$m
ACTUAL
2017-2018
August
$m
ACTUAL
2017-2018
YTD August
$m
Budget Profile
2017-2018
YTD August
$m
BUDGET ESTIMATE*
2017-2018
Full Year
$m
Revenue 35,818 34,830 70,648 65,887 444,414
Expenses 40,544 36,777 77,321 79,066 464,262
Net operating balance -4,726 -1,947 -6,673 -13,179 -19,848
Net capital investment -521 155 -366 455 484
Fiscal balance -4,205 -2,102 -6,307 -13,634 -20,331
Receipts(a) 35,057 33,443 68,500 65,405 433,494
less Payments(b)
41,147 35,554 76,702 76,946 459,684
less Net Future Fund earnings 521 62 583 441 3,205
Underlying cash balance(c) -6,611 -2,173 -8,784 -11,982 -29,396
Headline cash balance -8,156 -2,289 -10,445 -15,295 -48,411
Total assets 506,492   515,351   533,220
Total liabilities 904,494   912,089   851,329
Net worth(d) -398,003   -396,738   -318,109
Net debt(e) 332,036   332,593   354,931

*As published in the 2017-18 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 financial year to 31 August 2017 was a deficit of $8,784 million, which is $3,198 million lower than the 2017-18 Budget profile deficit of $11,982 million.

  • Receipts
    Total receipts were $3,095 million higher than the 2017-18 Budget profile.
  • Payments
    Total payments were $244 million lower than the 2017-18 Budget profile.

Net Operating Balance

The net operating balance for the year to 31 August 2017 was a deficit of $6,673 million, which is $6,506 million lower than the 2017-18 Budget profile deficit of $13,179 million. The difference results from higher than expected revenue and lower than expected expenses.

Fiscal Balance

The fiscal balance for the year to 31 August 2017 was a deficit of $6,307 million, which is $7,327 million lower than the 2017-18 Budget profile deficit of $13,634 million. As with the net operating balance, the difference results from higher than expected revenue and lower than expected expenses.

Assets and Liabilities

As at 31 August 2017:

  • Net worth is negative $396,738 million;
  • Net debt is $332,593 million; and
  • Net financial liabilities are $587,669 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
2017-2018
July
$m
ACTUAL
2017-2018
August
$m
ACTUAL
2017-2018
YTD August
$m
Budget Profile
2017-2018
YTD August
$m
BUDGET ESTIMATE*
2017-2018
Full Year
$m
Revenue            
Taxation revenue 1, 2 33,584 32,881 66,464 61,597 415,428
Sales of goods and services   994 671 1,666 1,623 11,496
Interest income   345 324 668 732 4,397
Dividend income   228 214 442 457 3,517
Other   668 740 1,407 1,478 9,578
Total revenue   35,818 34,830 70,648 65,887 444,414
Expenses            
Gross operating expenses            
    Wages and salaries(a)   1,547 1,679 3,227 3,182 19,906
    Superannuation   532 514 1,046 753 4,578
    Depreciation and amortisation   714 691 1,405 1,527 9,226
    Supply of goods and services   7,348 8,246 15,594 15,771 102,477
    Other operating expenses(a)   446 521 966 1,102 5,761
Total gross operating expenses   10,587 11,651 22,238 22,335 141,948
Superannuation interest expense   856 856 1,712 1,732 10,392
Interest expenses   1,502 1,482 2,984 3,000 18,544
Current transfers            
    Current grants   13,579 10,331 23,910 24,792 138,221
    Subsidy expenses   995 1,007 2,002 1,928 12,064
    Personal benefits   12,864 11,251 24,115 24,288 130,507
Total current transfers   27,438 22,589 50,027 51,009 280,792
Capital transfers            
    Mutually agreed write-downs   130 134 264 252 1,429
    Other capital grants   31 65 96 738 11,157
Total capital transfers   161 199 360 990 12,586
Total expenses 3 40,544 36,777 77,321 79,066 464,262
Net operating balance   -4,726 -1,947 -6,673 -13,179 -19,848
Other economic flows            
    - included in operating result            
    Net write-downs of assets (including bad and doubtful debts)   -2,764 636 -2,128 -1,343 -9,310
    Assets recognised for the first time   24 26 50 46 285
    Liabilities recognised for the first time   0 0 0 0 0
    Actuarial revaluations   0 0 0 0 25
    Net foreign exchange gains   784 13 797 0 -125
    Net swap interest received   45 115 161 0 0
    Market valuation of debt   938 1,575 2,513 357 1,832
    Other gains/(losses)   -195 31 -164 724 7,572
Total other economic flows            
    - included in operating result   -1,168 2,396 1,229 -217 281
Operating result (b)   -5,894 449 -5,445 -13,396 -19,567
Non-owner movements in equity            
    Revaluation of equity investments(c)   -53 -27 -80 0 -6,693
    Actuarial revaluations   0 0 0 -1 8
    Other economic revaluations(d)   -1,159 843 -316 -596 -162
Total other economic flows - included in equity   -1,212 816 -396 -597 -6,847
Comprehensive result - Total change in net worth   -7,106 1,265 -5,841 -13,993 -26,414
Net operating balance   -4,726 -1,947 -6,673 -13,179 -19,848
Net acquisition of non-financial assets            
Purchases of non-financial assets   435 878 1,313 1,840 13,582
less Sales of non-financial assets   13 8 21 27 4,041
less Depreciation   714 691 1,405 1,527 9,226
plus Change in inventories   -227 -22 -249 169 177
plus Other movements in non-financial assets   -2 -2 -4 0 -8
Total net acquisition of non-financial assets   -521 155 -366 455 484
Fiscal balance (Net lending/borrowing)(e)   -4,205 -2,102 -6,307 -13,634 -20,331

*As published in the 2017-18 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 2017
$m
ACTUAL
as at
31 August 2017
$m
BUDGET ESTIMATE*
as at
30 June 2018
$m
Assets      
Financial assets      
    Cash and deposits 5,049 6,201 3,411
    Advances paid 45,151 45,335 72,083
    Investments, loans and placements 173,548 177,121 170,989
    Other receivables 52,649 54,951 54,322
    Equity investments      
        Investments in other public sector entities 50,736 52,470 44,323
        Equity accounted investments 304 303 479
        Investments - shares 40,099 40,507 47,905
Total financial assets 367,535 376,889 393,511
Non-financial assets      
    Land 10,883 10,884 10,215
    Buildings 25,652 25,543 25,883
    Plant, equipment and infrastructure 74,608 74,166 74,595
    Inventories 8,282 8,234 8,349
    Intangibles 7,412 7,514 8,711
    Investment property 105 105 164
    Biological assets 53 52 49
    Heritage and cultural assets 11,625 11,623 11,412
    Assets held for sale 194 200 227
    Other non-financial assets 143 141 103
Total non-financial assets 138,956 138,462 139,709
Total assets 506,492 515,351 533,220
Liabilities      
Interest bearing liabilities      
    Deposits held 215 348 217
    Government securities 538,156 543,483 584,562
    Loans 15,733 15,743 15,065
    Other borrowing 1,681 1,678 1,569
Total interest bearing liabilities 555,784 561,251 601,414
Provisions and payables      
    Superannuation liability(a) 279,975 280,581 181,303
    Other employee liabilities 18,190 18,358 18,560
    Suppliers payable 3,813 4,757 5,874
    Personal benefits provisions and payable 13,373 13,259 13,552
    Subsidies provisions and payable 489 477 439
    Grants provisions and payable 10,421 10,267 10,589
    Other provisions and payables 22,451 23,138 19,599
Total provisions and payables 348,711 350,837 249,915
Total liabilities 904,494 912,089 851,329
Net worth(b) -398,003 -396,738 -318,109
Net financial worth(c) -536,959 -535,199 -457,818
Net financial liabilities(d) 587,695 587,669 502,141
Net debt(e) 332,036 332,593 354,931

*As published in the 2017-18 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, that best matches each individual scheme's liability duration, 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
2017-2018
July
$m
ACTUAL
2017-2018
August
$m
ACTUAL
2017-2018
YTD August
$m
Budget Profile
2017-2018
YTD August
$m
BUDGET ESTIMATE*
2017-2018
Full Year
$m
Cash receipts from operating activities          
Taxes received 32,571 30,614 63,185 60,065 404,302
Receipts from sales of goods and services 764 829 1,593 1,674 11,497
Interest receipts 535 149 684 548 3,233
Dividends and income tax equivalents 325 1,277 1,602 1,549 3,996
Other receipts 850 565 1,415 1,621 9,104
Total operating receipts 35,044 33,435 68,479 65,458 432,133
Cash payments for operating activities          
Payments for employees -2,298 -2,236 -4,535 -4,435 -28,553
Payments for goods and services -8,050 -8,457 -16,507 -16,144 -101,003
Grants and subsidies paid -15,703 -11,608 -27,310 -27,544 -161,202
Interest paid -1,060 -243 -1,303 -1,243 -16,589
Personal benefit payments -12,752 -11,705 -24,458 -24,545 -133,463
Other payments -597 -475 -1,072 -1,142 -5,369
Total operating payments -40,459 -34,725 -75,184 -75,053 -446,179
Net cash flows from operating activities -5,415 -1,290 -6,705 -9,595 -14,046
Cash flows from investments in
non-financial assets
         
Sales of non-financial assets 13 8 21 -53 1,361
Purchases of non-financial assets -687 -830 -1,517 -1,894 -13,506
Net cash flows from investments in
non-financial assets
-674 -822 -1,495 -1,946 -12,145
Net cash flows from investments in
financial assets for policy purposes
-2,066 -178 -2,244 -3,754 -22,221
Cash flows from investments in
financial assets for liquidity purposes
         
Increase in investments 16,823 -2,350 14,474 17,018 10,475
Net cash flows from investments in
financial assets for liquidity purposes
16,823 -2,350 14,474 17,018 10,475
Cash flows from financing activities          
Borrowing (net) -8,183 5,624 -2,559 -1,827 41,366
Other financing (net) -534 167 -367 -380 -3,427
Net cash flows from financing activities -8,717 5,791 -2,926 -2,208 37,939
Net increase/(decrease) in cash held -48 1,152 1,104 -485 3
GFS cash surplus(+)/deficit(-)(b)(c) -6,088 -2,111 -8,200 -11,541 -26,191
less Finance leases and similar arrangements(d) -2 0 -2 0 0
less Net Future Fund earnings 521 62 583 441 3,205
Equals underlying cash balance(e) -6,611 -2,173 -8,784 -11,982 -29,396
plus Net cash flows from investments in financial assets for policy purposes -2,066 -178 -2,244 -3,754 -22,221
plus Net Future Fund earnings 521 62 583 441 3,205
Equals headline cash balance -8,156 -2,289 -10,445 -15,295 -48,411

*As published in the 2017-18 Budget.
(a) A positive number denotes a cash inflow; a negative sign denotes a cash outflow.
(b) Due to the implementation of the 2015 ABS GFS Manual in the 2017-18 Budget, finance leases are no longer deducted in the derivation of the GFS cash surplus/deficit.
(c) GFS cash surplus/deficit equals net cash flows from operating activities and investments in non-financial assets.
(d) The acquisition of assets under finance leases worsens the underlying cash balance. The disposal of assets previously held under finance leases improves the underlying cash balance.
(e) The term underlying cash balance is not used by the Australian Bureau of Statistics.

 

Note 1: Income Tax

 ACTUAL
2017-2018
July
$m
ACTUAL
2017-2018
August
$m
ACTUAL
2017-2018
YTD August
$m
Budget Profile
2017-2018
YTD August
$m
BUDGET ESTIMATE*
2017-2018
Full Year
$m
Individuals and other withholding taxes          
    Gross income tax withholding 14,068 17,673 31,742 31,521 188,750
    Gross other individuals 5,704 2,456 8,160 8,831 49,860
    less Refunds 5,799 6,043 11,842 11,319 29,000
Total individuals and other withholding taxation 13,973 14,086 28,059 29,033 209,610
    Fringe benefits tax 851 -1 850 964 4,430
    Company tax 7,303 8,054 15,357 10,572 79,400
    Superannuation funds 1,289 845 2,134 1,664 8,540
    Resource rent taxes 1 249 250 298 990
Total income taxation revenue 23,417 23,234 46,650 42,531 302,970

*As published in the 2017-18 Budget.

 

Note 2: Indirect Tax

 ACTUAL
2017-2018
July
$m
ACTUAL
2017-2018
August
$m
ACTUAL
2017-2018
YTD August
$m
Budget Profile
2017-2018
YTD August
$m
BUDGET ESTIMATE*
2017-2018
Full Year
$m
Goods and services tax 5,974 5,826 11,799 11,597 65,710
Wine equalisation tax 56 64 121 122 900
Luxury car tax 70 47 117 111 650
Excise duty 2,115 1,706 3,821 3,664 22,190
Customs duty 1,363 1,505 2,867 2,574 14,730
Other indirect tax 589 500 1,089 998 8,278
Total indirect taxation revenue 10,167 9,647 19,814 19,066 112,458

*As published in the 2017-18 Budget.

 

Note 3: Total expenses by function

 ACTUAL
2017-2018
July
$m
ACTUAL
2017-2018
August
$m
ACTUAL
2017-2018
YTD August
$m
BUDGET ESTIMATE*
2017-2018
Full Year
$m
Expenses by function        
    General public services 1,686 1,671 3,358 20,703
    Defence 2,319 2,389 4,707 30,051
    Public order and safety 467 340 807 5,042
    Education 4,629 1,801 6,431 33,800
    Health 6,522 6,469 12,992 75,277
    Social security and welfare 15,642 13,530 29,172 164,059
    Housing and community amenities 348 315 663 5,351
    Recreation and culture 258 301 559 3,632
    Fuel and energy 553 548 1,101 6,940
    Agriculture, Forestry and Fishing 139 228 368 2,972
    Mining, manufacturing and construction 279 314 593 3,825
    Transport and communication(a) 127 248 376 10,420
    Other economic affairs 726 799 1,525 9,411
    Other purposes        
        Public debt interest 1,428 1,415 2,843 17,154
        Nominal superannuation interest 856 856 1,712 10,392
        General purpose inter-government transactions 4,565 5,550 10,115 64,274
        Natural disaster relief 0 0 0 9
        Contingency reserve 0 0 0 951
Total expenses 40,544 36,777 77,321 464,262

*As published in the 2017-18 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 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-june-2017/ 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: 13 October 2017