Australian Government Monthly Financial Statements October 2012

Senator the Hon Penny Wong
Minister for Finance and Deregulation

10/2012
20 December 2012

KEY POINTS

  • The underlying cash balance for the 2012-13 financial year to 31 October 2012 was a deficit of $12,297 million.
  • The fiscal balance for the 2012-13 financial year to 31 October 2012 was a deficit of $6,653 million.
AGGREGATES
ACTUAL
2012-2013
October
$m

ACTUAL
2012-2013
YTD October
$m
Budget
Profile
2012-2013
YTD October
$m
BUDGET
ESTIMATE*
2012-2013
FULL YEAR
$m
Revenue 42,210 119,070 118,575 376,071
Expenses 32,942 125,781 125,796 376,273
Net operating balance  9,268 -6,711 -7,222 -202
Net capital investment  45 -58 -1,427 -2,701
Fiscal balance  9,223 -6,653 -5,794 2,500
Underlying Cash Receipts 37,866 111,562 115,477 365,744
Underlying Cash Payments 31,637 123,859 125,111 364,209
Underlying cash balance(a) 6,230 -12,297 -9,634 1,536
Headline cash balance  5,746 -12,237 -14,421 -8,715
Total assets   350,945   349,396
Total liabilities   602,725   487,174
Net worth(b)   -251,781   -137,778
Net debt(c)   155,421   143,345

*As published in the 2012-13 Budget. The monthly profiles are constructed prospectively, and therefore will be comparable to the Mid Year Economic and Fiscal Outlook estimates from the November monthly statements.
(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 Fund1.

The underlying cash balance for the year to 31 October 2012 was a deficit of $12,297 million, compared to the Budget profile of the underlying cash balance deficit of $9,634 million. The difference of $2,663 million relates to lower underlying cash receipts partially offset by lower underlying cash payments.

Fiscal Balance

The fiscal balance for the year to 31 October 2012 was a deficit of $6,653 million. The Budget profile of the fiscal balance for 2012-13 is a deficit of $5,794 million. The difference of $859 million primarily relates to lower sales of non-financial assets partially offset by higher revenue.

FINANCIAL OUTCOMES

Revenues and Expenses

Total revenue was $495 million higher than the Budget profile estimate for 2012-13 primarily due to an increase in ‘other revenue’.

Total expenses were $125,781 million which is in line with the Budget profile of $125,796 million.

Assets and Liabilities

The net worth of the General Government sector is a negative net asset position of $251,781 million at 31 October 2012.


Senator Penny Wong
Minister for Finance and Deregulation
20 December 2012

David Tune
Secretary to the Department of Finance and Deregulation
20 December 2012

Contact: Senator Penny Wong's Office:
Department of Finance and Deregulation:
Sarika Thach - (02) 6277 7400
Amelia Huang - (02) 6215 3138


1 At 2012-13 MYEFO the Future Fund adjustment was changed to net whereas this report is completed on the same basis as 2012-13 Budget. The change to reflect the MYEFO treatment will be made at the same time as comparisons are changed to a MYEFO-based profile.



Australian Government General Government Sector – INCOME STATEMENT

 
ACTUAL
2012-2013
October
$m

ACTUAL
2012-2013
YTD October
$m
BUDGET
ESTIMATE*
2012-2013
FULL YEAR
$m
Revenue  
Taxation revenue 40,344 111,912 354,626
Sales of goods and services 744 2,788 8,264
Interest income 341 1,316 5,113
Dividend income 243 682 2,485
Other 538 2,371 5,583
Total revenue 42,210 119,070 376,071
Expenses  
Gross operating expenses  
Wages and salaries(a) 1,612 6,252 19,110
Superannuation 548 2,157 3,968
Depreciation and amortisation 526 2,032 6,188
Supply of goods and services 6,276 24,284 71,120
Other operating expenses(a) 472 1,846 5,057
Total gross operating expenses 9,434 36,571 105,443
Superannuation interest expense 576 2,304 8,015
Interest expenses 1,149 4,420 13,587
Current transfers  
Current grants 9,658 34,569 112,720
Subsidy expenses 1,777 4,248 12,943
Personal benefits 9,644 41,095 114,975
Total current transfers 21,079 79,912 240,637
Capital transfers  
Mutually agreed write-downs 167 648 2,266
Other capital grants 537 1,925 6,324
Total capital transfers 704 2,574 8,589
Total expenses 32,942 125,781 376,273
Net operating balance 9,268 -6,711 -202
Other economic flows  
Gain/loss on equity and on sale of assets(b) 693 2,328 6,554
Net write-downs of assets(including bad and doubtful debts) -492 -2,555 -5,358
Assets recognised for the first time 159 201 531
Actuarial revaluations 0 0 0
Net foreign exchange gains -168 555 -17
Net swap interest received 23 129 0
Market valuation of debt 1,818 1,509 2,635
Other economic revaluations(c)  672 -28 -153
Total other economic flows 2,706 2,139 4,193
Comprehensive result - Total change in net worth 11,974 -4,573 3,991
Net operating balance 9,268 -6,711 -202
Net acquisition of non-financial assets  
Purchases of non-financial assets 598 1,944 8,040
less Sales of non-financial assets 12 50 4,872
less Depreciation 526 2,032 6,188
plus Change in inventories -31 50 384
plus Other movements in non-financial assets 15 28 -65
Total net acquisition of non-financial assets 45 -58 -2,701
Fiscal balance (Net lending/borrowing)(d) 9,223 -6,653 2,500

*As published in the 2012-13 Budget.
(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 October 2012
$m
BUDGET
ESTIMATE*
as at
30 June 2013
$m
Assets  
Financial assets  
Cash and deposits 2,309 2,224
Advances paid 32,024 33,044
Investments, loans and placements 111,993 107,796
Other receivables 42,114 39,772
Equity investments  
Investments in other public sector entities 21,782 25,305
Equity accounted investments 312 317
Investments - shares 29,056 30,075
Total financial assets 239,589 238,532
Non-financial assets  
Land 8,639 8,558
Buildings 23,231 23,188
Plant, equipment and infrastructure  52,875 53,011
Inventories 7,186 7,095
Intangibles 5,526 5,528
Investment property 190 660
Biological assets 34 36
Heritage and cultural assets 10,434 9,581
Assets held for sale 70 146
Other non-financial assets 3,169 3,061
Total non-financial assets 111,355 110,864
Total assets 350,945 349,396
Liabilities  
Interest bearing liabilities  
Deposits held 223 209
Government securities 292,002 274,231
Loans 8,658 10,880
Other borrowing 865 1,089
Total interest bearing liabilities 301,748 286,408
Provisions and payables  
Superannuation liability(a) 237,490 143,667
Other employee liabilities  14,066 12,896
Suppliers payable 4,581 4,555
Personal benefits provisions and payable 13,298 13,929
Subsidies provisions and payable 3,849 3,289
Grants provisions and payable 13,262 11,248
Other provisions and payables 14,432 11,182
Total provisions and payables 300,977 200,765
Total liabilities 602,725 487,174
Net worth(b) -251,781 -137,778
Net financial worth(c) -363,136 -248,642
Net financial liabilities(d)  384,917 273,946
Net debt(e) 155,421 143,345

*As published in the 2012-13 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 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
2012-2013
October
$m
ACTUAL
2012-2013
YTD October
$m
BUDGET
ESTIMATE*
2012-2013
FULL YEAR
$m
Cash receipts from operating activities      
Taxes received 36,897 104,950 343,107
Receipts from sales of goods and services 719 2,704 8,289
Interest receipts 281 1,314 4,660
Dividends and income tax equivalents 272 1,555 2,518
Other receipts -75 2,305 5,329
Total operating receipts 38,095 112,829 363,902
Cash payments for operating activities  
Payments for employees -2,176 -8,942 -25,849
Payments for goods and services -6,328 -26,223 -71,162
Grants and subsidies paid -11,182 -40,525 -129,330
Interest paid -1,478 -3,707 -11,661
Personal benefit payments -9,637 -41,191 -113,517
Other payments  -375 -1,534 -4,760
Total operating payments -31,175 -122,121 -356,280
Net cash flows from operating activities 6,919 -9,292 7,622
Cash flows from investments in non-financial assets  
Sales of non-financial assets 12 50 4,872
Purchases of non-financial assets -461 -1,723 -7,523
Net cash flows from investments in
  non-financial assets
-449 -1,674 -2,651
Net cash flows from investments in
   financial assets for policy purposes
-724 -1,257 -13,281
Cash flows from investments in
   financial assets for liquidity purposes
 
Increase in investments -13,165 -11,408 -1,979
Net cash flows from investments in
   financial assets for liquidity purposes
-13,165 -11,408 -1,979
Cash flows from financing activities  
Borrowing (net) 7,060 23,571 11,549
Other financing (net) -272 -155 -1,507
Net cash flows from financing activities 6,788 23,415 10,043
Net increase/(decrease) in cash held -631 -215 -246
Net cash flows from operating activities
 and investments in non-financial assets
   (Surplus(+)/deficit(-))
6,470 -10,966 4,971
Finance leases and similar arrangements(b) 0 -15 -406
GFS cash surplus(+)/deficit(-) 6,470 -10,981 4,565
less Future Fund earnings 240 1,316 3,030
Equals underlying cash balance (c) 6,230 -12,297 1,536
 plus net cash flows from investments in
  financial assets for policy purposes
-724 -1,257 -13,281
plus Future fund earnings 240 1,316 3,030
Equals headline cash balance 5,746 -12,237 -8,715

*As published in the 2012-13 Budget.
(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
2012-2013
October
$m
ACTUAL
2012-2013
YTD October
$m
BUDGET
ESTIMATE(a)
2012-2013
FULL YEAR
$m
Expenses by function      
General public services 2,707 7,360 22,054
Defence 1,895 7,036 21,559
Public order and safety 414 1,386 3,957
Education  3,420 10,097 29,572
Health  5,145 20,487 61,003
Social security and welfare  10,182 45,821 131,656
Housing and community amenities 1,051 2,000 7,276
Recreation and culture 572 1,427 3,605
Fuel and energy 459 1,887 6,523
Agriculture, forestry and fishing 154 572 2,609
Mining, manufacturing and construction 129 587 2,084
Transport and communication 190 937 5,048
Other economic affairs 840 3,276 9,331
Other purposes  
Public debt interest 1,032 3,925 12,017
Nominal superannuation interest 576 2,304 8,015
General purpose inter-government transactions 4,177 16,679 50,519
Natural disaster relief 0 0 113
Contingency reserve 0 0 -670
Total expenses 32,942 125,781 376,273

* As published in the 2012-13 Budget.

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 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.

In response to the report ‘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 June and July Monthly Financial Statements, for which the IMF has given Australia special dispensation to release before 31 October.

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
2012-2013
October
$m
ACTUAL
2012-2013
YTD October
$m
BUDGET
ESTIMATE*
2012-2013
FULL YEAR
$m
Individuals and other withholding taxes      
Gross income tax withholding  12,365 49,924 151,620
Gross other individuals 4,234 12,394 37,670
Less refunds 3,159 16,739 26,240
Total individuals and other withholding taxation 13,440 45,578 163,050
Company tax  11,828 26,968 75,032
Superannuation funds 1,284 2,824 8,250
Resource rent taxes 501 1,119 7,410
Fringe benefits tax 843 1,670 3,900
Total income taxation revenue 27,897 78,159 257,642

*As published in the 2012-13 Budget.

Note 2: Indirect Tax

ACTUAL
2012-2013
October
$m
ACTUAL
2012-2013
YTD October
$m
BUDGET
ESTIMATE*
2012-2013
FULL YEAR
$m
Goods and services tax 5,963 17,889 50,486
Wine equalisation tax 44 186 780
Luxury car tax 30 148 450
Excise duty 2,567 8,884 26,885
Customs duty 750 2,677 7,370
Carbon pricing mechanism (a) 2,563 2,563 7,690
Other indirect tax 530 1,406 3,323
Total indirect taxation revenue 12,447 33,753 96,984

*As published in the 2012-13 Budget.
(a) As foreshadowed in the September monthly statements, the carbon price mechanism (accrual) revenue will be reported in the October and future monthly statements. The revenue is recorded through the year as emissions occur (no cash payments for the carbon price are due until June 2013). Each monthly outcome will be based on the expected annual results. The October amount includes the full year to date amount since no carbon price revenue was shown in the July, August or September accounts. The October outcome includes around $641 million of revenue related to emissions in October and around $1,922 million related to emissions in the July to September period.

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 Dissemination Standards 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].

Last updated: 23 February 2015