Australian Government General Government Sector Monthly Financial Statements May 2017

Senator the Hon Mathias Cormann
Minister for Finance

MC 39/17
Friday, 30 June 2017

Australian Government General Government Sector Monthly Financial Statements May 2017

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KEY POINTS

  • The underlying cash balance for the 2016-17 financial year to 31 May 2017 was a deficit of $30,427 million.
  • The fiscal balance for the 2016-17 financial year to 31 May 2017 was a deficit of $23,901 million.

AGGREGATES

ACTUAL
2016-2017
May
$m
ACTUAL
2016-2017
YTD May
$m
Revised Budget
Profile^
2016-2017
YTD May
$m
Revised Budget
ESTIMATE*
2016-2017
Full Year
$m
Revenue 43,640 382,937 376,447 412,091
Expenses 37,475 405,329 408,179 450,757
Net operating balance 6,165 -22,392 -31,732 -38,666
Net capital investment 29 1,509 174 2,047
Fiscal balance 6,136 -23,901 -31,905 -40,713
Receipts(a) 42,726 369,835 363,493 405,724
less Payments(b) 36,792 396,843 399,182 440,540
less Net Future Fund earnings 283 3,419 2,765 2,784
Underlying cash balance(c) 5,651 -30,427 -38,454 -37,600
Headline cash balance 4,249 -39,912 -50,803 -51,061
Total assets   532,754   517,500
Total liabilities   958,688   809,194
Net worth(d)   -425,934   -291,695
Net debt(e)   323,363   325,091

*As published in the 2017-18 Budget.
^Based on the previous profile, adjusted for significant changes 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 May 2017 was a deficit of $30,427 million, which is $8,028 million lower than the Revised Budget profile deficit of $38,454 million.

  • Receipts
    Total receipts were $6,342 million higher than the Revised Budget profile. This reflects higher than expected tax receipts of $3,969 million, partly from early tax receipts that were expected in June.
  • Payments
    Total payments were $2,339 million lower than the Revised Budget profile.

Fiscal Balance

The fiscal balance for the year to 31 May 2017 was a deficit of $23,901 million, which is $8,004 million lower than the Revised Budget profile deficit of $31,905 million. The difference results from higher than expected revenue and lower than expected expenses.

Net Operating Balance

The net operating balance for the year to 31 May 2017 was a deficit of $22,392 million, which is $9,339 million lower than the Revised Budget profile deficit of $31,732 million. As with the fiscal balance, the difference results from higher than expected revenue and lower than expected expenses.

Assets and Liabilities

As at 31 May 2017:

  • Net worth is negative $425,934 million;
  • Net debt is $323,363 million; and
  • Net financial liabilities are $616,921 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
May
$m
ACTUAL
2016-2017
YTD May
$m
Revised Budget Profile^
2016-2017
YTD May
$m
Revised Budget ESTIMATE*
2016-2017
Full Year
$m
Revenue          
Taxation revenue 1, 2 41,220 358,455 354,393 386,172
Sales of goods and services   913 7,991 7,834 8,894
Interest income   362 3,370 3,344 3,753
Dividend income   400 3,179 2,490 3,653
Other   746 9,942 8,386 9,618
Total revenue   43,640 382,937 376,447 412,091
Expenses          
Gross operating expenses          
Wages and salaries(a)   1,670 17,507 17,980 19,926
Superannuation   899 9,123 8,966 9,702
Depreciation and amortisation   715 7,767 8,143 9,547
Supply of goods and services   9,970 81,794 82,322 91,334
Other operating expenses(a)   488 5,247 5,118 5,686
Total gross operating expenses   13,743 121,437 122,529 136,195
Superannuation interest expense   746 8,210 8,069 8,446
Interest expenses   1,497 15,673 15,647 17,582
Current transfers          
Current grants   8,598 121,630 121,369 134,064
Subsidy expenses   1,123 12,020 12,051 12,663
Personal benefits   11,039 119,522 119,999 129,941
Total current transfers   20,760 253,173 253,419 276,668
Capital transfers          
Mutually agreed write-downs   127 1,158 1,254 1,389
Other capital grants   602 5,678 7,261 10,478
Total capital transfers   729 6,836 8,515 11,867
Total expenses 3 37,475 405,329 408,179 450,757
Net operating balance   6,165 -22,392 -31,732 -38,666
Other economic flows          
- included in operating result          
Net write-downs of assets (including bad and doubtful debts)   -142 -9,234 -9,807 -9,013
Assets recognised for the first time   -87 162 305 315
Liabilities recognised for the first time   0 0 0 0
Actuarial revaluations   0 0 0 373
Net foreign exchange gains   -209 1,065 1 157
Net swap interest received   -38 96 25 25
Market valuation of debt   -5,470 11,829 19,449 19,594
Other gains/(losses)   2,059 6,478 4,231 6,989
Total other economic flows          
- included in operating result   -3,888 10,396 14,204 18,440
Operating result (b)   2,277 -11,996 -17,528 -20,226
Non-owner movements in equity          
Revaluation of equity investments(c)   -15 -22 0 -7,075
Actuarial revaluations   0 0 1 -138
Other economic revaluations(d)   -6,340 4,650 12,206 -5,354
Total other economic flows - included in equity   -6,355 4,627 12,207 0
Comprehensive result - Total change in net worth   -4,078 -7,369 -5,321 -12,567
Net operating balance   6,165 -22,392 -31,732 -38,666
Net acquisition of non-financial assets          
Purchases of non-financial assets   1,262 9,773 8,859 12,181
less Sales of non-financial assets   509 717 657 790
less Depreciation   715 7,767 8,143 9,547
plus Change in inventories   -3 154 87 205
plus Other movements in non-financial assets   -6 66 28 -2
Total net acquisition of non-financial assets   29 1,509 174 2,047
Fiscal balance (Net lending/borrowing)(e)   6,136 -23,901 -31,905 -40,713

*As published in the 2017-18 Budget.
^Based on the previous profile, adjusted for significant changes 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 May 2017
$m
Revised Budget
ESTIMATE*
as at
30 June 2017
$m
Assets    
Financial assets    
Cash and deposits 4,242 3,408
Advances paid(a) 48,782 54,073
Investments, loans and placements 189,901 181,854
Other receivables 56,783 49,736
Equity investments(a)    
Investments in other public sector entities 55,878 48,126
Equity accounted investments 294 366
Investments - shares 41,765 43,440
Total financial assets 397,645 381,003
Non-financial assets    
Land 10,497 10,296
Buildings 25,488 25,795
Plant, equipment and infrastructure 71,269 72,022
Inventories 8,490 8,482
Intangibles 7,340 7,912
Investment property 81 164
Biological assets 40 49
Heritage and cultural assets 11,521 11,439
Assets held for sale 214 227
Other non-financial assets 168 111
Total non-financial assets 135,109 136,497
Total assets 532,754 517,500
Liabilities    
Interest bearing liabilities    
Deposits held 249 217
Government securities 548,267 546,915
Loans 16,128 15,685
Other borrowing 1,645 1,609
Total interest bearing liabilities 566,289 564,426
Provisions and payables    
Superannuation liability(b) 324,068 174,989
Other employee liabilities 18,782 18,180
Suppliers payable 3,973 5,659
Personal benefits provisions and payable 13,808 13,189
Subsidies provisions and payable 507 451
Grants provisions and payable 10,757 11,537
Other provisions and payables 20,505 20,763
Total provisions and payables 392,399 244,768
Total liabilities 958,688 809,194
Net worth(c) -425,934 -291,695
Net financial worth(d) -561,043 -428,191
Net financial liabilities(e) 616,921 476,317
Net debt(f) 323,363 325,091

*As published in the 2017-18 Budget.
(a) Due to the implementation of the 2015 ABS GFS Manual in the 2017-18 Budget, Australia’s subscriptions to the International Development Association and Asian Development Fund have been reclassified from ‘advances paid’ to ‘equity investments’ in the balance sheet. The implementation of the 2015 ABS GFS Manual also resulted in these subscriptions being recognised at fair value rather than nominal value.
(b) 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.
(c) Net worth is calculated as total assets minus total liabilities.
(d) Net financial worth equals total financial assets minus total liabilities.
(e) Net financial liabilities equals total liabilities less financial assets other than investments in other public sector entities.
(f) 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
May
$m
ACTUAL
2016-2017
YTD May
$m
Revised Budget
Profile^
2016-2017
YTD May
$m
Revised Budget
ESTIMATE*
2016-2017
Full Year
$m
Cash receipts from operating activities        
Taxes received 40,096 343,646 339,677 377,201
Receipts from sales of goods and services 830 7,710 7,597 8,786
Interest receipts 277 2,747 2,620 3,003
Dividends and income tax equivalents 330 6,418 5,780 5,820
Other receipts 684 8,617 7,193 8,695
Total operating receipts 42,217 369,139 362,867 403,505
Cash payments for operating activities        
Payments for employees -2,371 -24,540 -24,930 -27,918
Payments for goods and services -9,264 -81,744 -82,434 -90,127
Grants and subsidies paid -11,077 -139,892 -141,126 -157,615
Interest paid -1,456 -14,926 -14,909 -15,251
Personal benefit payments -11,179 -121,202 -121,486 -132,186
Other payments -466 -5,622 -5,008 -5,464
Total operating payments -35,812 -387,926 -389,894 -428,560
Net cash flows from operating activities 6,405 -18,787 -27,026 -25,055
Cash flows from investments in
   non-financial assets
       
Sales of non-financial assets 509 695 626 2,219
Purchases of non-financial assets -974 -8,901 -9,286 -11,979
Net cash flows from investments in
   non-financial assets
-465 -8,206 -8,660 -9,760
Net cash flows from investments in
   financial assets for policy purposes
-1,686 -12,904 -15,114 -16,246
Cash flows from investments in
   financial assets for liquidity purposes
       
Increase in investments -13,664 -35,772 -13,507 -30,734
Net cash flows from investments in
   financial assets for liquidity purposes
-13,664 -35,772 -13,507 -30,734
Cash flows from financing activities        
Borrowing (net) 7,946 79,424 76,562 84,770
Other financing (net) -358 -3,150 -3,182 -3,205
Net cash flows from financing activities 7,587 76,274 73,380 81,565
Net increase/(decrease) in cash held -1,822 604 9,073 -230
GFS cash surplus(+)/deficit(-)(b)(c) 5,941 -26,993 -35,687 -34,816
less Finance leases and similar arrangements(d) -6 -16 -3 0
less Net Future Fund earnings 283 3,419 2,765 2,784
Equals underlying cash balance(e) 5,651 -30,427 -38,454 -37,600
plus Net cash flows from investments in
   financial assets for policy purposes
-1,686 -12,904 -15,114 -16,246
plus Net Future Fund earnings 283 3,419 2,765 2,784
Equals headline cash balance 4,249 -39,912 -50,803 -51,061

*As published in the 2017-18 Budget.
^Based on the previous profile, adjusted for significant changes 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 decreases the underlying cash balance.The disposal of assets previously held under finance leases increases the underlying cash.
(e) The term underlying cash balance is not used by the Australian Bureau of Statistics.

 

Note 1: Income Tax

 ACTUAL
2016-2017
May
$m
ACTUAL
2016-2017
YTD May
$m
Revised Budget
Profile^
2016-2017
YTD May
$m
Revised Budget ESTIMATE*
2016-2017
Full Year
$m
Individuals and other withholding taxes        
Gross income tax withholding 16,591 165,915 165,241 180,150
Gross other individuals 5,997 42,497 43,189 46,730
less Refunds 1,651 27,335 27,397 28,300
Total individuals and other withholding taxation 20,938 181,076 181,033 198,580
Fringe benefits tax 205 4,247 4,425 4,450
Company tax 8,668 65,654 62,345 68,900
Superannuation funds 571 7,720 7,416 7,760
Resource rent taxes 5 975 973 1,050
Total income taxation revenue 30,386 259,673 256,192 280,740

*As published in the 2017-18 Budget.
^Based on the previous profile, adjusted for significant changes in the 2017-18 Budget.

 

Note 2: Indirect Tax

 ACTUAL
2016-2017
May
$m
ACTUAL
2016-2017
YTD May
$m
Revised Budget
Profile^
2016-2017
YTD May
$m
Revised Budget
ESTIMATE*
2016-2017
Full Year
$m
Goods and services tax 6,665 59,164 58,992 62,220
Wine equalisation tax 75 777 786 870
Luxury car tax 48 605 606 660
Excise duty 2,068 20,126 20,022 21,560
Customs duty 1,482 12,581 12,499 14,090
Other indirect tax 495 5,528 5,296 6,032
Total indirect taxation revenue 10,833 98,782 98,201 105,432

*As published in the 2017-18 Budget.
^Based on the previous profile, adjusted for significant changes in the 2017-18 Budget.

 

Note 3: Total expenses by function

 ACTUAL
2016-2017
May
$m
ACTUAL
2016-2017
YTD May
$m
Revised Budget
ESTIMATE*
2016-2017
Full Year
$m
Expenses by function      
General public services 2,378 23,630 27,172
Defence 2,559 24,916 28,464
Public order and safety 410 4,414 5,162
Education 1,858 30,555 33,237
Health 6,618 66,665 73,820
Social security and welfare 12,425 141,217 155,698
Housing and community amenities 335 3,842 4,700
Recreation and culture 336 3,071 3,609
Fuel and energy 569 6,158 6,790
Agriculture, Forestry and Fishing 284 2,209 2,843
Mining, manufacturing and construction 304 3,297 3,559
Transport and communication 1,000 6,680 9,394
Other economic affairs 932 8,327 9,840
Other purposes      
Public debt interest 1,434 14,690 16,028
Nominal superannuation interest 746 8,210 8,446
General purpose inter-government transactions 5,286 57,448 63,448
Natural disaster relief 0 0 82
Contingency reserve 0 0 -1,536
Total expenses 37,475 405,329 450,757

*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.orgPDF 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-march-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-dataPDF icon.

Last updated: 30 June 2017