Australian Government General Government Sector Monthly Financial Statements November 2017

Senator the Hon Mathias Cormann
Minister for Finance
Leader of the Government in the Senate

MC 88/17
Friday, 22 December 2017

Australian Government General Government Sector Monthly Financial Statements November 2017

KEY POINTS

The underlying cash balance for the 2017-18 financial year to 30 November 2017 was a deficit of $20,820 million.
The fiscal balance for the 2017-18 financial year to 30 November 2017 was a deficit of $14,294 million.

AGGREGATES	ACTUAL 2017-2018 November $m	ACTUAL 2017-2018 YTD November $m	Budget Profile 2017-2018 YTD November $m	BUDGET ESTIMATE* 2017-2018 FULL YEAR $m
Revenue	40,769	175,415	165,978	444,414
Expenses	37,181	190,595	191,246	464,262
Net operating balance	3,588	-15,179	-25,267	-19,848
Net capital investment	702	-885	1,427	484
Fiscal balance	2,887	-14,294	-26,695	-20,331
Receipts(a)	40,248	170,900	162,449	433,494
less Payments(b)	37,498	189,798	191,436	459,684
less Net Future Fund earnings	440	1,922	1,488	3,205
Underlying cash balance(c)	2,310	-20,820	-30,474	-29,396
Headline cash balance	822	-24,599	-36,391	-48,411
Total assets		521,381		533,220
Total liabilities		928,426		851,329
Net worth(d)		-407,045		-318,109
Net debt(e)		350,578		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.

Comparators for the November 2017 monthly financial statements are based on the 2017-18 Budget published in May 2017. From December 2017 monthly financial statements, the comparators will be based on updated estimates from the 2017-18 Mid-Year Economic and Fiscal Outlook.

FISCAL OUTCOMES

Underlying Cash Balance

The underlying cash balance for the financial year to 30 November 2017 was a deficit of $20,820 million, which is $9,654 million lower than the 2017-18 Budget profile deficit of $30,474 million.

Receipts
Total receipts were $8,451 million higher than the 2017-18 Budget profile.

Payments
Total payments were $1,638 million lower than the 2017-18 Budget profile.

Net Operating Balance

The net operating balance for the year to 30 November 2017 was a deficit of $15,179 million, which is $10,088 million lower than the 2017-18 Budget profile deficit of $25,267 million. The difference primarily results from higher than expected revenue.

Fiscal Balance

The fiscal balance for the year to 30 November 2017 was a deficit of $14,294 million, which is $12,401 million lower than the 2017-18 Budget profile deficit of $26,695 million. As with the net operating balance, the difference primarily results from higher than expected revenue.

Assets and Liabilities

As at 30 November 2017:

Net worth is negative $407,045 million;
Net debt is $350,578 million; and
Net financial liabilities are $598,513 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 2017-2018 November $m	ACTUAL 2017-2018 YTD November $m	Budget Profile 2017-2018 YTD November $m	BUDGET ESTIMATE* 2017-2018 FULL YEAR $m
Revenue
Taxation revenue	1, 2	38,015	163,529	155,079	415,428
Sales of goods and services		761	4,050	4,186	11,496
Interest income		391	1,758	1,780	4,397
Dividend income		391	1,714	1,204	3,517
Other		1,212	4,365	3,729	9,578
Total revenue		40,769	175,415	165,978	444,414
Expenses
Gross operating expenses
Wages and salaries(a)		1,696	8,102	8,261	19,906
Superannuation		554	3,048	1,917	4,578
Depreciation and amortisation		702	3,578	3,825	9,226
Supply of goods and services		8,910	41,436	41,563	102,477
Other operating expenses(a)		786	2,782	2,688	5,761
Total gross operating expenses		12,648	58,944	58,255	141,948
Superannuation interest expense		760	4,155	4,330	10,392
Interest expenses		1,440	7,353	7,474	18,544
Current transfers
Current grants		10,318	57,136	57,637	138,221
Subsidy expenses		743	4,816	4,849	12,064
Personal benefits		10,575	55,417	55,806	130,507
Total current transfers		21,636	117,370	118,292	280,792
Capital transfers
Mutually agreed write-downs		102	1,288	636	1,429
Other capital grants		595	1,485	2,259	11,157
Total capital transfers		697	2,773	2,895	12,586
Total expenses	3	37,181	190,595	191,246	464,262
Net operating balance		3,588	-15,179	-25,267	-19,848
Other economic flows
- included in operating result
Net write-downs of assets (including bad and doubtful debts)		-422	-3,215	-3,365	-9,310
Assets recognised for the first time		24	122	114	285
Actuarial revaluations		3	3	0	25
Net foreign exchange gains		-389	-551	0	-125
Net swap interest received		-57	204	0	0
Market valuation of debt		-2,057	-1,319	871	1,832
Other gains/(losses)		-2,001	3,454	1,800	7,572
Total other economic flows - included in operating result		-4,897	-1,301	-580	281
Operating Result(b)		-1,309	-16,481	-25,848	-19,567
Non-owner movements in equity
Revaluation of equity investments(c)		-105	-121	0	-6,693
Actuarial revaluations		0	0	-1	8
Other economic revaluations(d)		-395	-951	-920	-162
Total other economic flows - included in equity		-500	-1,072	-922	-6,847
Comprehensive result - Total change in net worth		-1,809	-17,553	-26,769	-26,414
Net operating balance		3,588	-15,179	-25,267	-19,848
Net acquisition of non-financial assets
Purchases of non-financial assets		1,504	4,739	5,178	13,582
less Sales of non-financial assets		-45	1,755	123	4,041
less Depreciation		702	3,578	3,825	9,226
plus Change in inventories		-118	-277	196	177
plus Other movements in non-financial assets		-28	-15	2	-8
Total net acquisition of non-financial assets		702	-885	1,427	484
Fiscal balance (Net lending/borrowing)(e)		2,887	-14,294	-26,695	-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 30 November 2017 $m	BUDGET ESTIMATE * as at 30 June 2018 $m
Assets
Financial assets
Cash and deposits	7,142	3,411
Advances paid	48,133	72,083
Investments, loans and placements	174,021	170,989
Other receivables	51,410	54,322
Equity investments
Investments in other public sector entities	52,011	44,323
Equity accounted investments	13	479
Investments - shares	49,194	47,905
Total financial assets	381,925	393,511
Non-financial assets
Land	11,044	10,215
Buildings	25,447	25,883
Plant, equipment and infrastructure	75,111	74,595
Inventories	8,231	8,349
Intangibles	7,593	8,711
Investment property	125	164
Biological assets	49	49
Heritage and cultural assets	11,618	11,412
Assets held for sale	193	227
Other non-financial assets	45	103
Total non-financial assets	139,456	139,709
Total assets	521,381	533,220
Liabilities
Interest bearing liabilities
Deposits held	214	217
Government securities	561,965	584,562
Loans	16,015	15,065
Other borrowing	1,679	1,569
Total interest bearing liabilities	579,874	601,414
Provisions and payables
Superannuation liability(a)	282,977	181,303
Other employee liabilities	18,510	18,560
Suppliers payable	5,588	5,874
Personal benefits provisions and payable	10,977	13,552
Subsidies provisions and payable	696	439
Grants provisions and payable	10,608	10,589
Other provisions and payables	19,195	19,599
Total provisions and payables	348,553	249,915
Total liabilities	928,426	851,329
Net worth(b)	-407,045	-318,109
Net financial worth(c)	-546,502	-457,818
Net financial liabilities(d)	598,513	502,141
Net debt(e)	350,578	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 November $m	ACTUAL 2017-2018 YTD November $m	Budget Profile 2017-2018 YTD November $m	BUDGET ESTIMATE* 2017-2018 FULL YEAR $m
Cash receipts from operating activities
Taxes received	37,957	158,541	150,753	404,302
Receipts from sales of goods and services	839	3,899	4,376	11,497
Interest receipts	404	1,611	1,316	3,233
Dividends and income tax equivalents	297	2,873	2,302	3,996
Other receipts	716	3,932	3,635	9,104
Total operating receipts	40,213	170,856	162,382	432,133
Cash payments for operating activities
Payments for employees	-3,141	-11,821	-11,980	-28,553
Payments for goods and services	-8,028	-41,473	-41,679	-101,003
Grants and subsidies paid	-12,037	-64,904	-64,697	-161,202
Interest paid	-1,512	-7,747	-7,791	-16,589
Personal benefit payments	-11,652	-56,947	-57,507	-133,463
Other payments	-372	-2,503	-2,593	-5,369
Total operating payments	-36,741	-185,395	-186,246	-446,179
Net cash flows from operating activities	3,472	-14,539	-23,864	-14,046
Cash flows from investments in non-financial assets
Sales of non-financial assets	35	44	67	1,361
Purchases of non-financial assets	-757	-4,312	-5,189	-13,506
Net cash flows from investments in non-financial assets	-721	-4,268	-5,122	-12,145
Net cash flows from investments in financial assets for policy purposes	-1,928	-5,701	-7,405	-22,221
Cash flows from investments in financial assets for liquidity purposes
Increase in investments	-7,709	14,552	21,313	10,475
Net cash flows from investments in financial assets for liquidity purposes	-7,709	14,552	21,313	10,475
Cash flows from financing activities
Borrowing (net)	7,849	12,806	16,283	41,366
Other financing (net)	404	-845	11	0
Net cash flows from financing activities	8,253	11,961	16,294	41,366
Net increase/(decrease) in cash held	1,366	2,005	1,216	3,430
GFS cash surplus(+)/deficit(-)(b)(c)	2,750	-18,807	-28,986	-26,191
less Finance leases and similar arrangements(d)	0	91	0	0
less Net Future Fund earnings	440	1,922	1,488	3,205
Equals underlying cash balance(e)	2,310	-20,820	-30,474	-29,396
plus Net cash flows from investments in financial assets for policy purposes	-1,928	-5,701	-7,405	-22,221
plus Net Future Fund earnings	440	1,922	1,488	3,205
Equals headline cash balance	822	-24,599	-36,391	-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 November $m	ACTUAL 2017-2018 YTD November $m	Budget Profile 2017-2018 YTD November $m	BUDGET ESTIMATE* 2017-2018 FULL YEAR $m
Individuals and other withholding taxes
Gross income tax withholding	17,651	80,024	78,705	188,750
Gross other individuals	3,217	17,947	18,460	49,860
less Refunds	2,348	20,794	20,634	29,000
Total individuals and other withholding taxation	18,520	77,178	76,531	209,610
Fringe benefits tax	65	1,901	2,029	4,430
Company tax	7,290	30,895	25,816	79,400
Superannuation funds	1,402	5,388	3,911	8,540
Resource rent taxes	1	575	564	990
Total income taxation revenue	27,279	115,937	108,851	302,970

_{*As published in the 2017-18 Budget.}

Note 2: Indirect Tax

	ACTUAL 2017-2018 November $m	ACTUAL 2017-2018 YTD November $m	Budget Profile 2017-2018 YTD November $m	BUDGET ESTIMATE* 2017-2018 FULL YEAR $m
Goods and services tax	6,964	29,182	28,633	65,710
Wine equalisation tax	89	329	320	900
Luxury car tax	62	294	263	650
Excise duty	1,859	9,544	9,337	22,190
Customs duty	992	5,262	5,189	14,730
Other indirect tax	771	2,981	2,487	8,278
Total indirect taxation revenue	10,736	47,592	46,229	112,458

_{*As published in the 2017-18 Budget.}

Note 3: Total expenses by function

	ACTUAL 2017-2018 November $m	ACTUAL 2017-2018 YTD November $m	BUDGET ESTIMATE* 2017-2018 FULL YEAR $m
Expenses by function
General public services	1,252	9,534	20,703
Defence	2,634	12,035	30,051
Public order and safety	617	2,147	5,042
Education	1,662	14,360	33,800
Health	6,932	32,000	75,277
Social security and welfare	12,811	68,374	164,059
Housing and community amenities	384	1,754	5,351
Recreation and culture	347	1,438	3,632
Fuel and energy	535	2,765	6,940
Agriculture, Forestry and Fishing	216	964	2,972
Mining, manufacturing and construction	297	1,478	3,825
Transport and communication	421	1,541	10,420
Other economic affairs	779	4,272	9,411
Other purposes
Public debt interest	1,372	6,991	17,154
Nominal superannuation interest	760	4,155	10,392
General purpose inter-government transactions	6,162	26,787	64,274
Natural disaster relief	0	0	9
Contingency reserve	0	0	951
Total expenses	37,181	190,595	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. 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/.

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 November 2017