Australian Government General Government Sector Monthly Financial Statements April 2017

Senator the Hon Mathias Cormann
Minister for Finance

MC 25/17
Friday, 26 May 2017

Australian Government General Government Sector Monthly Financial Statements April 2017

KEY POINTS

The underlying cash balance for the 2016-17 financial year to 30 April 2017 was a deficit of $36,078 million.
The fiscal balance for the 2016-17 financial year to 30 April 2017 was a deficit of $30,037 million.

AGGREGATES	ACTUAL 2016-2017 April $m	ACTUAL 2016-2017 YTD April $m	MYEFO Profile 2016-2017 YTD April $m	MYEFO ESTIMATE* 2016-2017 Full Year $m
Revenue	41,840	339,297	334,735	411,112
Expenses	34,009	367,854	372,294	448,642
Net operating balance	7,831	-28,557	-37,559	-37,530
Net capital investment	503	1,480	1,521	3,953
Fiscal balance	7,328	-30,037	-39,080	-41,482
Receipts(a)	37,728	327,108	328,117	407,350
less Payments(b)	34,577	360,051	363,273	441,063
less Net Future Fund earnings	322	3,135	2,498	2,801
Underlying cash balance(c)	2,829	-36,078	-37,654	-36,514
Headline cash balance	2,097	-44,161	-49,005	-52,505
Total assets		523,976		522,675
Total liabilities		945,831		803,396
Net worth(d)		-421,856		-280,721
Net debt(e)		317,384		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.

The 2016-17 estimates were revised as part of the 2017-18 Budget (released on 9 May 2017) and will be used as the basis of comparison for the May 2017 monthly financial statements.

FISCAL OUTCOMES

Underlying Cash Balance

The underlying cash balance for the financial year to 30 April 2017 was a deficit of $36,078 million, which is $1,577 million lower than the 2016-17 Mid-Year Economic and Fiscal Outlook (MYEFO) profile deficit of $37,654 million.

Receipts
Total receipts were $1,008 million lower than the 2016-17 MYEFO profile.
Payments
Total payments were $3,222 million lower than the 2016-17 MYEFO profile.

Fiscal Balance

The fiscal balance for the year to 30 April 2017 was a deficit of $30,037 million, which is $9,043 million lower than the 2016-17 MYEFO profile deficit of $39,080 million. The difference results from higher than expected revenue and lower than expected expenses.

Assets and Liabilities

As at 30 April 2017:

Net worth is negative $421,856 million;
Net debt is $317,384 million; and
Net financial liabilities are $610,880 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

	Note	ACTUAL 2016-2017 April $m	ACTUAL 2016-2017 YTD April $m	MYEFO Profile 2016-2017 YTD April $m	MYEFO ESTIMATE* 2016-2017 Full Year $m
Revenue
Taxation revenue	1, 2	39,122	317,235	314,463	386,345
Sales of goods and services		731	7,078	7,131	8,905
Interest income		320	3,009	3,023	3,771
Dividend income		251	2,779	2,193	2,687
Other		1,416	9,196	7,924	9,404
Total revenue		41,840	339,297	334,735	411,112
Expenses
Gross operating expenses
Wages and salaries(a)		1,513	15,836	16,251	20,060
Superannuation		780	8,224	8,199	9,720
Depreciation and amortisation		944	7,051	6,628	7,855
Supply of goods and services		6,704	71,823	71,979	87,762
Other operating expenses(a)		506	4,759	4,681	5,572
Total gross operating expenses		10,447	107,694	107,738	130,969
Superannuation interest expense		746	7,464	7,152	8,446
Interest expenses		1,463	14,177	14,159	17,637
Current transfers
Current grants		9,632	113,032	113,019	135,615
Subsidy expenses		1,073	10,898	11,037	13,509
Personal benefits		10,118	108,483	109,721	129,749
Total current transfers		20,823	232,413	233,777	278,873
Capital transfers
Mutually agreed write-downs		87	1,030	1,243	1,479
Other capital grants		443	5,076	8,224	11,239
Total capital transfers		530	6,107	9,467	12,718
Total expenses	3	34,009	367,854	372,294	448,642
Net operating balance		7,831	-28,557	-37,559	-37,530
Other economic flows
- included in operating result
Net write-downs of assets (including bad and doubtful debts)		-1,449	-9,092	-7,139	-8,178
Assets recognised for the first time		17	250	283	328
Liabilities recognised for the first time		0	0	0	0
Actuarial revaluations		0	0	0	-8
Net foreign exchange gains		-638	1,273	1	-187
Net swap interest received		38	134	45	45
Market valuation of debt		-3,243	17,299	24,099	24,243
Other gains/(losses)		2,599	4,419	3,466	4,558
Total other economic flows - included in operating result		-2,677	14,283	20,754	20,801
Operating Result(b)		-5,154	-14,274	-16,805	-16,728
Non-owner movements in equity
Revaluation of equity investments(c)		-13	-7	0	-4,846
Actuarial revaluations		0	0	1	1,665
Other economic revaluations(d)		-154	10,990	12,186	175
Total other economic flows - included in equity		-167	10,983	12,187	-3,006
Comprehensive result - Total change in net worth		4,987	-3,291	-4,618	-19,734
Net operating balance		7,831	-28,557	-37,559	-37,530
Net acquisition of non-financial assets
Purchases of non-financial assets		984	8,511	8,191	12,284
less Sales of non-financial assets		-292	208	118	897
less Depreciation		944	7,051	6,628	7,855
plus Change in inventories		176	157	50	421
plus Other movements in non-financial assets		-5	72	27	0
Total net acquisition of non-financial assets		503	1,480	1,521	3,953
Fiscal balance (Net lending/borrowing)(e)		7,328	-30,037	-39,080	-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 30 April 2017 $m	MYEFO ESTIMATE* as at 30 June 2017 $m
Assets
Financial assets
Cash and deposits	6,065	2,942
Advances paid	55,974	59,987
Investments, loans and placements	173,842	177,400
Other receivables	56,297	47,959
Equity investments
Investments in other public sector entities	53,360	51,944
Equity accounted investments	292	299
Investments - shares	42,481	43,343
Total financial assets	388,311	383,874
Non-financial assets
Land	10,536	10,613
Buildings	25,708	25,982
Plant, equipment and infrastructure	71,487	73,645
Inventories	8,602	8,499
Intangibles	7,235	8,097
Investment property	141	164
Biological assets	42	49
Heritage and cultural assets	11,501	11,413
Assets held for sale	238	227
Other non-financial assets	174	112
Total non-financial assets	135,664	138,801
Total assets	523,976	522,675
Liabilities
Interest bearing liabilities
Deposits held	230	217
Government securities	535,195	540,184
Loans	16,165	15,455
Other borrowing	1,674	1,666
Total interest bearing liabilities	553,265	557,522
Provisions and payables
Superannuation liability(a)	323,138	175,047
Other employee liabilities	18,749	18,638
Suppliers payable	3,560	6,358
Personal benefits provisions and payable	13,408	12,677
Subsidies provisions and payable	477	931
Grants provisions and payable	10,993	11,710
Other provisions and payables	22,241	20,513
Total provisions and payables	392,566	245,874
Total liabilities	945,831	803,396
Net worth(b)	-421,856	-280,721
Net financial worth(c)	-557,520	-419,522
Net financial liabilities(d)	610,880	471,466
Net debt(e)	317,384	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 April $m	ACTUAL 2016-2017 YTD April $m	MYEFO Profile 2016-2017 YTD April $m	MYEFO ESTIMATE* 2016-2017 Full Year $m
Cash receipts from operating activities
Taxes received	35,328	303,549	304,893	378,756
Receipts from sales of goods and services	654	6,881	6,745	8,766
Interest receipts	217	2,470	2,447	2,990
Dividends and income tax equivalents	321	6,088	5,484	5,828
Other receipts	1,164	7,934	7,909	8,673
Total operating receipts	37,685	326,922	327,479	405,013
Cash payments for operating activities
Payments for employees	-2,154	-22,169	-21,910	-28,259
Payments for goods and services	-5,848	-72,480	-72,471	-87,328
Grants and subsidies paid	-11,317	-128,815	-131,612	-159,698
Interest paid	-3,937	-13,470	-13,538	-15,377
Personal benefit payments	-10,088	-110,023	-111,082	-132,884
Other payments	-508	-5,156	-4,338	-5,235
Total operating payments	-33,852	-352,114	-354,952	-428,781
Net cash flows from operating activities	3,833	-25,192	-27,473	-23,768
Cash flows from investments in non-financial assets
Sales of non-financial assets	43	187	638	2,337
Purchases of non-financial assets	-725	-7,928	-8,318	-12,282
Net cash flows from investments in non-financial assets	-683	-7,741	-7,681	-9,945
Net cash flows from investments in financial assets for policy purposes	-1,054	-11,219	-13,848	-18,792
Cash flows from investments in financial assets for liquidity purposes
Increase in investments	-4,166	-22,108	-12,397	-27,724
Net cash flows from investments in financial assets for liquidity purposes	-4,166	-22,108	-12,397	-27,724
Cash flows from financing activities
Borrowing (net)	4,453	71,478	68,322	82,682
Other financing (net)	-801	-2,792	-2,760	-3,149
Net cash flows from financing activities	3,651	68,687	65,562	79,533
Net increase/(decrease) in cash held	1,582	2,427	4,163	-696
Net cash flows from operating activities and investments in non-financial assets (Surplus(+)/deficit(-))	3,151	-32,933	-35,154	-33,713
Finance leases and similar arrangements(b)	0	-9	-3	0
GFS cash surplus(+)/deficit(-)	3,151	-32,942	-35,156	-33,713
less Net Future Fund earnings	322	3,135	2,498	2,801
Equals underlying cash balance(c)	2,829	-36,078	-37,654	-36,514
plus Net cash flows from investments in financial assets for policy purposes	-1,054	-11,219	-13,848	-18,792
plus Net Future Fund earnings	322	3,135	2,498	2,801
Equals headline cash balance	2,097	-44,161	-49,005	-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 April $m	ACTUAL 2016-2017 YTD April $m	MYEFO Profile 2016-2017 YTD April $m	MYEFO ESTIMATE* 2016-2017 Full Year $m
Individuals and other withholding taxes
Gross income tax withholding	13,901	149,324	150,129	180,680
Gross other individuals	6,959	36,499	35,816	46,700
less Refunds	1,028	25,685	26,238	28,900
Total individuals and other withholding taxation	19,833	160,139	159,707	198,480
Fringe benefits tax	974	4,043	4,169	4,540
Company tax	7,641	56,986	54,665	68,700
Superannuation funds	867	7,149	7,007	8,080
Resource rent taxes	227	971	893	920
Total income taxation revenue	29,541	229,287	226,439	280,720

_{*As published in the 2016-17 MYEFO.}

Note 2: Indirect Tax

	ACTUAL 2016-2017 April $m	ACTUAL 2016-2017 YTD April $m	MYEFO Profile 2016-2017 YTD April $m	MYEFO ESTIMATE* 2016-2017 Full Year $m
Goods and services tax	6,168	52,499	53,031	62,410
Wine equalisation tax	67	703	754	910
Luxury car tax	64	557	520	640
Excise duty	1,716	18,058	17,781	21,410
Customs duty	1,150	11,099	11,176	14,260
Other indirect tax	417	5,033	4,762	5,995
Total indirect taxation revenue	9,582	87,949	88,024	105,625

_{*As published in the 2016-17 MYEFO.}

Note 3: Total expenses by function

	ACTUAL 2016-2017 April $m	ACTUAL 2016-2017 YTD April $m	MYEFO ESTIMATE* 2016-2017 Full Year $m
Expenses by function
General public services	1,883	21,252	26,991
Defence	2,562	22,357	26,816
Public order and safety	438	4,005	5,117
Education	1,766	28,698	33,339
Health	5,380	60,046	72,842
Social security and welfare	12,537	128,792	155,792
Housing and community amenities	359	3,507	5,131
Recreation and culture	273	2,735	3,532
Fuel and energy	580	5,588	6,874
Agriculture, Forestry and Fishing	182	1,925	2,914
Mining, manufacturing and construction	298	2,993	4,052
Transport and communication(a)	66	5,681	10,296
Other economic affairs	589	7,395	9,866
Other purposes
Public debt interest	1,393	13,256	15,984
Nominal superannuation interest	746	7,464	8,446
General purpose inter-government transactions	4,957	52,162	62,696
Natural disaster relief	0	0	32
Contingency reserve	0	0	-2,077
Total expenses	34,009	367,854	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. 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/.

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.

Australian Government General Government Sector Monthly Financial Statements April 2017