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Senator the Hon Penny Wong
Minister for Finance and Deregulation

09/2012
14 December 2012

Australian Government Monthly Financial Statements
September 2012

KEY POINTS

AGGREGATES
ACTUAL
2012-2013
September
$m

ACTUAL
2012-2013
YTD September
$m
Budget
Profile
2012-2013
YTD September
$m
BUDGET
ESTIMATE*
2012-2013
FULL YEAR
$m
Revenue 18,037 76,860 76,360 376,071
Expenses 28,802 92,839 92,876 376,273
Net operating balance  -10,764 -15,979 -16,516 -202
Net capital investment  -118 -103 -1,092 -2,701
Fiscal balance  -10,646 -15,876 -15,424 2,500
Underlying Cash Receipts 16,041 73,696 75,843 365,744
Underlying Cash Payments 27,149 92,222 92,614 364,209
Underlying cash balance(a) -11,109 -18,527 -16,771 1,536
Headline cash balance  -10,895 -17,983 -21,264 -8,715
Total assets   333,827   349,396
Total liabilities   597,582   487,174
Net worth(b)   -263,755   -137,778
Net debt(c)   164,196   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 30 September 2012 was a deficit of $18,527 million, compared to the Budget profile of the underlying cash balance deficit of $16,771 million. The difference of $1,756 million relates to lower underlying cash receipts partially offset by lower underlying cash payments.

Fiscal Balance

The fiscal balance for the year to 30 September 2012 was a deficit of $15,876 million. The Budget profile of the fiscal balance for 2012-13 is a deficit of $15,424 million. The difference of $452 million primarily relates to lower sales of non-financial assets partially offset by higher revenue.

FINANCIAL OUTCOMES

Revenues and Expenses

Total revenue was $500 million higher than the Budget profile estimate for 2012-13 primarily due to an increase in other revenue.

Total expenses were $37 million lower when compared with the Budget profile estimate for 2012-13 primarily due to lower than anticipated grants and subsidy expense, partially offset by higher interest expenses and higher than anticipated operating expenses.

Assets and Liabilities

The net worth of the General Government sector is a negative net asset position of $263,755 million at 30 September 2012.


Senator Penny Wong
Minister for Finance and Deregulation
14 December 2012

David Tune
Secretary to the Department of Finance and Deregulation
14 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
September
$m

ACTUAL
2012-2013
YTD September
$m
BUDGET
ESTIMATE*
2012-2013
FULL YEAR
$m
Revenue  
Taxation revenue 16,136 71,568 354,626
Sales of goods and services 799 2,044 8,264
Interest income 330 975 5,113
Dividend income 135 440 2,485
Other 637 1,833 5,583
Total revenue 18,037 76,860 376,071
Expenses  
Gross operating expenses  
Wages and salaries(a) 1,472 4,640 19,110
Superannuation 539 1,609 3,968
Depreciation and amortisation 524 1,506 6,188
Supply of goods and services 5,696 18,008 71,120
Other operating expenses(a) 439 1,373 5,057
Total gross operating expenses 8,670 27,137 105,443
Superannuation interest expense 576 1,728 8,015
Interest expenses 1,091 3,271 13,587
Current transfers  
Current grants 7,432 24,911 112,720
Subsidy expenses 977 2,471 12,943
Personal benefits 9,482 31,451 114,975
Total current transfers 17,891 58,833 240,637
Capital transfers  
Mutually agreed write-downs 161 481 2,266
Other capital grants 413 1,389 6,324
Total capital transfers 574 1,870 8,589
Total expenses 28,802 92,839 376,273
Net operating balance -10,764 -15,979 -202
Other economic flows  
Gain/loss on equity and on sale of assets(b) 698 1,635 6,554
Net write-downs of assets(including bad and doubtful debts) -906 -2,063 -5,358
Assets recognised for the first time -45 42 531
Actuarial revaluations 0 0 0
Net foreign exchange gains 236 722 -17
Net swap interest received 66 106 0
Market valuation of debt -964 -309 2,635
Other economic revaluations(c)  -764 -700 -153
Total other economic flows -1,679 -568 4,193
Comprehensive result - Total change in net worth -12,443 -16,547 3,991
Net operating balance -10,764 -15,979 -202
Net acquisition of non-financial assets  
Purchases of non-financial assets 297 1,346 8,040
less Sales of non-financial assets 11 38 4,872
less Depreciation 524 1,506 6,188
plus Change in inventories 113 81 384
plus Other movements in non-financial assets 7 13 -65
Total net acquisition of non-financial assets -118 -103 -2,701
Fiscal balance (Net lending/borrowing)(d) -10,646 -15,876 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
30 September 2012
$m
BUDGET
ESTIMATE*
as at
30 June 2013
$m
Assets  
Financial assets  
Cash and deposits 2,940 2,224
Advances paid 31,959 33,044
Investments, loans and placements 98,236 107,796
Other receivables 38,550 39,772
Equity investments  
Investments in other public sector entities 21,779 25,305
Equity accounted investments 313 317
Investments - shares 28,499 30,075
Total financial assets 222,276 238,532
Non-financial assets  
Land 8,642 8,558
Buildings 23,274 23,188
Plant, equipment and infrastructure  52,699 53,011
Inventories 7,309 7,095
Intangibles 5,523 5,528
Investment property 193 660
Biological assets 34 36
Heritage and cultural assets 10,432 9,581
Assets held for sale 78 146
Other non-financial assets 3,366 3,061
Total non-financial assets 111,551 110,864
Total assets 333,827 349,396
Liabilities  
Interest bearing liabilities  
Deposits held 224 209
Government securities 287,544 274,231
Loans 8,673 10,880
Other borrowing 890 1,089
Total interest bearing liabilities 297,330 286,408
Provisions and payables  
Superannuation liability(a) 237,071 143,667
Other employee liabilities  13,909 12,896
Suppliers payable 5,411 4,555
Personal benefits provisions and payable 13,449 13,929
Subsidies provisions and payable 2,875 3,289
Grants provisions and payable 13,448 11,248
Other provisions and payables 14,088 11,182
Total provisions and payables 300,251 200,765
Total liabilities 597,582 487,174
Net worth(b) -263,755 -137,778
Net financial worth(c) -375,305 -248,642
Net financial liabilities(d)  397,085 273,946
Net debt(e) 164,196 143,345

*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
September
$m
ACTUAL
2012-2013
YTD September
$m
BUDGET
ESTIMATE*
2012-2013
FULL YEAR
$m
Cash receipts from operating activities      
Taxes received 13,785 68,053 343,107
Receipts from sales of goods and services 528 1,985 8,289
Interest receipts 222 1,033 4,660
Dividends and income tax equivalents 971 1,282 2,518
Other receipts 919 2,380 5,329
Total operating receipts 16,424 74,734 363,902
Cash payments for operating activities  
Payments for employees -2,021 -6,765 -25,849
Payments for goods and services -5,538 -19,895 -71,162
Grants and subsidies paid -8,722 -29,343 -129,330
Interest paid -1,123 -2,229 -11,661
Personal benefit payments -9,221 -31,555 -113,517
Other payments  -247 -1,159 -4,760
Total operating payments -26,873 -90,945 -356,280
Net cash flows from operating activities -10,449 -16,212 7,622
Cash flows from investments in non-financial assets  
Sales of non-financial assets 11 38 4,872
Purchases of non-financial assets -262 -1,262 -7,523
Net cash flows from investments in
  non-financial assets
-251 -1,224 -2,651
Net cash flows from investments in
   financial assets for policy purposes
-181 -533 -13,281
Cash flows from investments in
   financial assets for liquidity purposes
 
Increase in investments 5,984 1,757 -1,979
Net cash flows from investments in
   financial assets for liquidity purposes
5,984 1,757 -1,979
Cash flows from financing activities  
Borrowing (net) 5,230 16,510 11,549
Other financing (net) 545 117 -1,507
Net cash flows from financing activities 5,775 16,627 10,043
Net increase/(decrease) in cash held 879 416 -246
Net cash flows from operating activities
 and investments in non-financial assets
   (Surplus(+)/deficit(-))
-10,700 -17,436 4,971
Finance leases and similar arrangements(b) -15 -15 -406
GFS cash surplus(+)/deficit(-) -10,714 -17,451 4,565
less Future Fund earnings 394 1,076 3,030
Equals underlying cash balance (c) -11,109 -18,527 1,536
 plus net cash flows from investments in
  financial assets for policy purposes
-181 -533 -13,281
plus Future fund earnings 394 1,076 3,030
Equals headline cash balance -10,895 -17,983 -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
September
$m
ACTUAL
2012-2013
YTD September
$m
BUDGET
ESTIMATE(a)
2012-2013
FULL YEAR
$m
Expenses by function      
General public services 1,209 4,653 22,054
Defence 1,759 5,142 21,559
Public order and safety 193 971 3,957
Education  1,330 6,677 29,572
Health  4,649 15,343 61,003
Social security and welfare  11,098 35,639 131,656
Housing and community amenities 498 949 7,276
Recreation and culture 126 855 3,605
Fuel and energy 449 1,427 6,523
Agriculture, forestry and fishing 163 418 2,609
Mining, manufacturing and construction 215 458 2,084
Transport and communication 404 748 5,048
Other economic affairs 789 2,436 9,331
Other purposes  
Public debt interest 967 2,893 12,017
Nominal superannuation interest 576 1,728 8,015
General purpose inter-government transactions 4,378 12,502 50,519
Natural disaster relief 0 0 113
Contingency reserve 0 0 -670
Total expenses 28,802 92,839 376,273

* 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 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
2012-2013
September
$m
ACTUAL
2012-2013
YTD September
$m
BUDGET
ESTIMATE*
2012-2013
FULL YEAR
$m
Individuals and other withholding taxes      
Gross income tax withholding  11,881 37,559 151,620
Gross other individuals 1,077 8,160 37,670
Less refunds 3,362 13,581 26,240
Total individuals and other withholding taxation 9,596 32,138 163,050
Company tax  354 15,140 75,032
Superannuation funds -184 1,540 8,250
Resource rent taxes 213 618 7,410
Fringe benefits tax 10 827 3,900
Total income taxation revenue 9,989 50,263 257,642

*As published in the 2012-13 Budget.

Note 2: Indirect Tax

ACTUAL
2012-2013
September
$m
ACTUAL
2012-2013
YTD September
$m
BUDGET
ESTIMATE*
2012-2013
FULL YEAR
$m
Goods and services tax 3,076 11,926 50,486
Wine equalisation tax 46 142 780
Luxury car tax 35 118 450
Excise duty 1,986 6,317 26,885
Customs duty 598 1,927 7,370
Carbon pricing mechanism (a) 0 0 7,690
Other indirect tax 405 876 3,323
Total indirect taxation revenue 6,147 21,305 96,984

*As published in the 2012-13 Budget.
(a) Since the Carbon pricing mechanism is new, YTD revenue is being refined and will be reported from the October Monthly Statements. Cash receipts are expected to be received in June 2013.

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].

 


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Last Modified: 14 December, 2012