Australian Government Monthly Financial Statements November 2011

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

01/12
10 February 2012

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



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)

  1. 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 [External Site].
  2. 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 [External Site]. 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 [External Site].