Home >> Publications >> Commonwealth Monthly Financial Statements >> 2011 >> Australian Government Monthly Financial Statements November 2011

Media Release
Senator the Hon Penny Wong
Minister for Finance and Deregulation

01/12
10 February 2012

Australian Government Monthly Financial Statements
November 2011

KEY POINTS

• The underlying cash balance for the 2011-12 financial year to 30 November 2011 was a deficit of $22,236 million.
• The fiscal balance for the 2011-12 financial year to 30 November 2011 was a deficit of $17,688 million.

AGGREGATES	ACTUAL 2011-2012 November $m	ACTUAL 2011-2012 YTD November $m	MYEFO Profile 2011-2012 YTD November $m	MYEFO ESTIMATE* 2011-2012 FULL YEAR $m
Revenue	24,764	133,787	132,996	344,110
Expenses	29,749	150,825	152,336	371,747
Net operating balance	-4,985	-17,037	-19,341	-27,637
Net capital investment	616	651	340	4,813
Fiscal balance	-5,600	-17,688	-19,681	-32,450
Underlying Cash Receipts	23,470	128,559	127,930	332,977
Underlying Cash Payments	29,836	150,795	151,784	370,090
Underlying cash balance(a)	-6,366	-22,236	-23,853	-37,113
Headline cash balance	-6,837	-23,324	-24,866	-43,334
Total assets		327,007		328,461
Total liabilities		455,854		450,789
Net worth(b)		-128,847		-122,328
Net debt(c)		121,314		132,552

*As published in the 2011-12 MYEFO.
(a) Excludes Future Fund earnings.
(b) Net worth is calculated as total assets minus total liabilities.
(c) 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 includes cash from operations and net cash provided by investing activities in non-financial assets but excludes the cash earnings for the Future Fund.

The underlying cash balance for the year to 30 November 2011 was a deficit of $22,236 million, compared to the Mid Year Economic Fiscal Outlook (MYEFO) profile of the underlying cash balance deficit of $23,853 million. The difference of $1,617 million primarily relates to higher than anticipated taxation receipts and lower payments for grants and subsidies, offset by higher purchases of non-financial assets.

Fiscal Balance

The fiscal balance for the year to 30 November 2011 was a deficit of $17,688 million. The MYEFO profile of the fiscal balance for 2011-12 is a deficit of $19,681 million. The difference of $1,993 million primarily relates to higher revenue of $792 million, lower expenses of $1,512 million and higher net acquisition of non‑financial assets of $311 million.

FINANCIAL OUTCOMES

Revenues and Expenses

Total revenue was $792 million higher than the MYEFO profile estimate for 2011-12 due to higher taxation revenue.

Total expenses were $1,512 million lower when compared with the MYEFO profile estimate for 2011-12 due to lower than anticipated grants expense and supply of goods and services.

Assets and Liabilities

The net worth of the General Government sector is a negative net asset position of $128,847 million at 30 November 2011.

Senator the Hon Penny Wong Minister for Finance and Deregulation 10 February 2012

David Tune Secretary to the Department of Finance and Deregulation 10 February 2012

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Australian Government General Government Sector – INCOME STATEMENT

	ACTUAL 2011-2012 November $m	ACTUAL 2011-2012 YTD November $m	MYEFO ESTIMATE* 2011-2012 FULL YEAR $m
Revenue
Taxation revenue	23,170	125,571	323,631
Sales of goods and services	675	3,309	8,050
Interest income	368	1,867	5,190
Dividend income	131	695	1,652
Other	420	2,345	5,587
Total revenue	24,764	133,787	344,110
Expenses
Gross operating expenses
Wages and salaries(a)	1,522	7,564	19,374
Superannuation	363	1,726	4,177
Depreciation and amortisation	479	2,446	5,733
Supply of goods and services	5,949	28,873	70,425
Other operating expenses(a)	431	2,213	4,624
Total gross operating expenses	8,744	42,821	104,333
Superannuation interest expense	612	3,058	7,351
Interest expenses	1,067	5,294	12,983
Current transfers
Current grants	7,011	42,097	111,799
Subsidy expenses	808	3,879	9,782
Personal benefits	9,352	47,640	110,787
Total current transfers	17,171	93,615	232,368
Capital transfers
Mutually agreed write-downs	183	979	2,267
Other capital grants	1,972	5,056	12,445
Total capital transfers	2,155	6,036	14,712
Total expenses	29,749	150,825	371,747
Net operating balance	-4,985	-17,037	-27,637
Other economic flows
Gain/loss on equity and on sale of assets(b)	239	-2,342	-1,875
Net write-downs of assets(including bad and doubtful debts)	-374	-1,476	-5,376
Assets recognised for the first time	39	147	517
Actuarial revaluations	0	0	-819
Net foreign exchange gains	-743	-471	-527
Net swap interest received	-41	-115	45
Market valuation of debt	-6,287	-11,949	-7,628
Other economic revaluations(c)	-74	-216	-84
Total other economic flows	-7,242	-16,423	-15,747
Comprehensive result - Total change in net worth	-12,227	-33,460	-43,383
Net operating balance	-4,985	-17,037	-27,637
Net acquisition of non-financial assets
Purchases of non-financial assets	1,007	3,014	10,013
less Sales of non-financial assets	8	115	612
less Depreciation	479	2,446	5,733
plus Change in inventories	87	119	638
plus Other movements in non-financial assets	8	77	508
Total net acquisition of non-financial assets	616	651	4,813
Fiscal balance (Net lending/borrowing)(d)	-5,600	-17,688	-32,450

*As published in the 2011-12 MYEFO.
(a) Consistent with ABS GFS classification, other employee related expenses are reported under other operating expenses. Total employee expenses equal wages and salaries plus other operating expenses.
(b) Reflects changes in the market valuation of investments and any revaluations at the point of disposal or sale.
(c) Largely reflects other revaluation of assets and liabilities.
(d) The term fiscal balance is not used by the ABS.

Australian Government General Government Sector - BALANCE SHEET

	ACTUAL as at 31 November 2011 $m	MYEFO ESTIMATE* as at 30 June 2012 $m
Assets
Financial assets
Cash and deposits	2,875	2,484
Advances paid	27,488	29,790
Investments, loans and placements	102,422	97,990
Other receivables	38,744	37,011
Equity investments
Investments in other public sector entities	22,343	21,858
Equity accounted investments	316	318
Investments - shares	26,850	29,110
Total financial assets	221,037	218,560
Non-financial assets
Land	8,479	8,661
Buildings	22,591	23,094
Plant, equipment and infrastructure	50,710	52,696
Inventories	6,926	7,031
Intangibles	4,665	5,224
Investment property	532	316
Biological assets	99	36
Heritage and cultural assets	9,460	9,498
Assets held for sale	127	148
Other non-financial assets	2,379	3,196
Total non-financial assets	105,970	109,901
Total assets	327,007	328,461
Liabilities
Interest bearing liabilities
Deposits held	247	209
Government securities	243,793	253,455
Loans	9,260	8,357
Other borrowing	799	796
Total interest bearing liabilities	254,099	262,816
Provisions and payables
Superannuation liability(a)	147,035	133,487
Other employee liabilities	11,407	11,539
Suppliers payable	4,864	4,478
Personal benefits provisions and payable	11,995	13,165
Subsidies provisions and payable	2,121	2,292
Grants provisions and payable	11,829	10,618
Other provisions and payables	12,505	12,394
Total provisions and payables	201,755	187,973
Total liabilities	455,854	450,789
Net worth(b)	-128,847	-122,328
Net financial worth(c)	-234,816	-232,229
Net financial liabilities(d)	257,159	254,087
Net debt(e)	121,314	132,552

*As published in the 2011-12 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

	ACTUAL 2011-2012 November $m	ACTUAL 2011-2012 YTD November $m	MYEFO ESTIMATE* 2011-2012 FULL YEAR $m
Cash receipts from operating activities
Taxes received	22,168	121,092	315,299
Receipts from sales of goods and services	438	3,123	7,970
Interest receipts	372	1,777	4,902
Dividends and income tax equivalents	42	1,102	2,233
Other receipts	533	2,578	5,417
Total operating receipts	23,554	129,672	335,820
Cash payments for operating activities
Payments for employees	-2,282	-10,621	-26,171
Payments for goods and services	-5,275	-30,382	-71,140
Grants and subsidies paid	-9,675	-52,099	-137,057
Interest paid	-2,009	-4,066	-10,775
Personal benefit payments	-9,505	-48,455	-110,299
Other payments	-244	-1,729	-4,522
Total operating payments	-28,991	-147,352	-359,963
Net cash flows from operating activities	-5,437	-17,680	-24,143
Cash flows from investments in non-financial assets
Sales of non-financial assets	8	115	612
Purchases of non-financial assets	-845	-3,441	-10,009
Net cash flows from investments in   non-financial assets	-837	-3,326	-9,397
Net cash flows from investments in    financial assets for policy purposes	-563	-2,316	-9,677
Cash flows from investments in    financial assets for liquidity purposes
Increase in investments	1,466	-5,615	1,475
Net cash flows from investments in    financial assets for liquidity purposes	1,466	-5,615	1,475
Cash flows from financing activities
Borrowing (net)	5,513	29,623	43,688
Other financing (net)	-65	-288	-1,939
Net cash flows from financing activities	5,448	29,335	41,749
Net increase/(decrease) in cash held	78	398	7
Net cash flows from operating activities  and investments in non-financial assets    (Surplus(+)/deficit(-))	-6,274	-21,006	-33,540
Finance leases and similar arrangements(b)	0	-2	-117
GFS cash surplus(+)/deficit(-)	-6,274	-21,008	-33,658
less Future Fund earnings	92	1,228	3,455
Equals underlying cash balance (c)	-6,366	-22,236	-37,113
plus net cash flows from investments in   financial assets for policy purposes	-563	-2,316	-9,677
plus Future fund earnings	92	1,228	3,455
Equals headline cash balance	-6,837	-23,324	-43,334

*As published in the 2011-12 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 ABS.

Australian Government General Government Sector - EXPENSES BY FUNCTION

	ACTUAL 2011-2012 November $m	ACTUAL 2011-2012 YTD November $m	MYEFO ESTIMATE* 2011-2012 FULL YEAR $m
Expenses by function
General public services	2,006	8,815	21,849
Defence	1,932	8,408	21,050
Public order and safety	288	1,563	4,012
Education	1,570	12,215	30,016
Health	5,056	24,268	60,944
Social security and welfare	10,191	53,483	124,857
Housing and community amenities	260	1,618	5,871
Recreation and culture	16	979	3,375
Fuel and energy	481	2,387	7,021
Agriculture, forestry and fishing	223	933	3,569
Mining, manufacturing and construction	139	771	2,144
Transport and communication	748	2,457	8,324
Other economic affairs	857	3,916	9,603
Other purposes
Public debt interest	966	4,675	11,623
Nominal superannuation interest	612	3,058	7,351
General purpose inter-government transactions	4,404	21,278	50,479
Natural disaster relief	0	0	512
Contingency reserve	0	0	-853
Total expenses	29,749	150,825	371,747

*As published in the 2011-12 MYEFO.

NOTES:

The Australian Government monthly financial statements have been prepared on a basis consistent with the Budget as required under section 54 of the Financial Management and Accountability Act 1997. The statements are 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.

In response to the report titled ‘Review of Operation Sunlight: Overhauling Budgetary Transparency’, the Australian Government has improved the transparency and accountability of the Monthly Financial Statements by reporting against a profile of expected revenue and expenses. This allows for a more accurate commentary and account for seasonality or patterns of revenue and expenses.

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. Under these standards the timeframe for releasing the Monthly Financial Statements is by the end of the following month. The exception is the July Monthly Financial Statements, for which the IMF has given Australia special dispensation to release before 30 September.

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 thus estimates, in accordance with the best judgement of the Taxation Commissioner, and subject to revision. The taxation revenue items not affected are: petroleum resource rent tax, excise duty, customs duty, other taxes and individuals refunds.

The sum of the revenue accrued in the month and the revisions to prior periods equals the revenue reported in the Income Statement.

Note 1: Income Tax

	ACTUAL 2011-2012 November $m	ACTUAL 2011-2012 YTD November $m	MYEFO ESTIMATE* 2011-2012 FULL YEAR $m
Individuals and other withholding taxes
Gross income tax withholding	12,251	58,768	143,520
Gross other individuals	1,619	12,748	32,910
less refunds	2,278	18,205	26,600
Total individuals and other withholding taxation	11,592	53,310	149,830
Company tax	2,761	28,421	71,800
Superannuation funds	795	4,157	8,990
Resource rent tax	32	974	2,030
Fringe benefits tax	66	1,655	3,530
Total income taxation revenue	15,246	88,517	236,180

*As published in the 2011-12 MYEFO.

Note 2: Indirect Tax

	ACTUAL 2011-2012 November $m	ACTUAL 2012-2012 YTD November $m	MYEFO ESTIMATE* 2012-2012 FULL YEAR $m
Goods and services tax	4,685	21,865	49,750
Wine equalisation tax	66	271	750
Luxury car tax	32	182	480
Excise duty	2,247	10,798	26,960
Customs duty	654	2,834	6,740
Other indirect tax	241	1,104	2,771
Total indirect taxation revenue	7,924	37,054	87,451

*As published in the 2011-12 MYEFO.

NOTE:

Style Conventions

1. 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 (IMF) Special Data Dissemination Standards (SDDS)

2. In accordance with the IMF's SDDS, quarter ahead notice of the date of release of the data on central government operations, which is contained in the Australian Government Financial Statements, is given on the IMF's Data Dissemination Bulletin Board at http//dsbb.imf.org [].
3. 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 AOFM website at http://www.aofm.gov.au/content/borrowing/commonwealth.asp?NavID=32 [].

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